AI Data Insight
In Q1 2026, Indonesia's GDP implicit deflator rose steadily to 179.4586 from 176.9264 in the previous quarter, reflecting a continuous elevation in the overall domestic price level. During the same period, the real GDP annual growth rate reached 5.61%, far exceeding market expectations, primarily benefiting from the dual boost of Ramadan festive consumption and government spending. However, the market is also concerned that the expensive subsidy policies will pose potential pressure on future fiscal discipline and the Indonesian Rupiah exchange rate.