Indonesia GDP Grew 5.61% YoY in 1Q26

MACROECONOMY 

Indonesia GDP Grew 5.61% YoY in 1Q26 
Indonesia’s GDP grew 5.61% YoY in 1Q26 (vs. 5.39% in 4Q25; above 5.3% consensus), marking the strongest growth since 3Q22, driven by stronger private consumption (5.52%) and a sharp pickup in govt. spending (21.81%), while investment remained solid (5.96%). Exports slowed (0.90%) amid supply chain disruptions, while imports rose (7.18%) on firm domestic demand; sector-wise, growth was led by trade, construction, and hospitality, while manufacturing and ICT moderated. (Trading Economics)

Indonesia Govt. Plans Panda Bond Issuance to Support Rupiah Stability 
Indonesia govt. plans to issue Panda Bonds in China as part of funding diversification strategy to reduce reliance on USD denominated debt and secure lower borrowing costs, aiming to support rupiah stability and strengthen financial resilience amid global uncertainty, while reflecting confidence in domestic fiscal conditions. (Bisnis.com)

INDUSTRY
Indonesia Govt. to Launch EV Incentives Starting Jun-26 
Indonesia govt. plans to roll out EV incentives starting Jun-26, targeting initial quota of 100,000 electric cars and 100,000 electric motorcycles, with motorcycle subsidy set at IDR 5 mn/unit, aiming to boost consumption, reduce fuel dependency, and ease energy subsidy burden while supporting economic growth in 2H26 and accelerating transition toward cleaner energy and stronger domestic automotive industry. (Beritasatu) 

Indonesia Govt. to Provide VAT Incentives for EV Purchases 
Indonesia govt. plans to provide EV purchase incentives through VAT borne by govt. (PPN DTP) ranging 40%–100%, with higher incentives for EVs using nickel-based batteries to support domestic downstream industry, while detailed implementation will be finalized by the Ministry of Industry. (CNBC Indonesia) 

Indonesia Govt. Targets LPG-to-CNG Conversion Pilot in 2026 
Indonesia govt., through the Ministry of Energy and Mineral Resources, targets to start a 3 kg LPG-to-CNG conversion pilot project in 2026, beginning in major cities across Java after completion of testing within the next three months, using composite-based CNG cylinders (type 4), as part of efforts to optimize energy usage and reduce reliance on LPG. (Bloomberg Technoz) 

Indonesia Govt. Considers Windfall Tax and Export Duties on Nickel 
Indonesia govt. is evaluating windfall tax on nickel and potential export duties on nickel and coal to boost state revenue and curb under-invoicing practices, while maintaining support for downstream battery industry development and ensuring policies do not hinder ongoing industrialization efforts. (Kompas) 

Indonesia Govt. to Enforce New DHE SDA Regulation Starting Jun-26 
Indonesia govt. will enforce revised DHE SDA regulation starting 01 Jun-26, requiring exporters to place proceeds in state-owned banks (Himbara) for a minimum 12 months with up to 50% converted to IDR, while oil & gas sector is exempted with 3-month placement, alongside introduction of domestic FX-denominated SBN to absorb excess FX and deepen financial markets. (CNBC Indonesia) 

OJK Reported P2P Lending Outstanding Reached IDR 101.03 tn in Mar-26 
Otoritas Jasa Keuangan reported P2P lending (pindar) outstanding reached IDR 101.03 tn (+26.25% YoY; +0.34% MtM) in Mar-26, with TWP90 at 4.52%, indicating rising credit risk, while several players have yet to meet minimum equity requirements and regulators continue tightening supervision through administrative sanctions. (Bisnis.com)