When contacted in Jakarta on Thursday, she noted that government spending, which reached Rp815 trillion (approximately US$46.4 billion) in early 2026, highlights the significant role of fiscal policy.
She explained that expansive government spending is generally designed to boost aggregate demand, create jobs, and drive growth in real Gross Domestic Product (GDP), which can fast-track national development if distributed effectively.
Astuti urged the government to maximize the multiplier effect of public spending, emphasizing that funds sourced from taxes and debt issuance should be more effectively directed toward creating sustainable investment, generating jobs, and providing incentives for productive sectors.
Regarding future economic prospects, she noted that government spending still has the potential to drive the economy, though not in the long-term.
Statistics Indonesia (BPS) recorded that Indonesia's economic growth stood at 5.61 percent in the first quarter of 2026, with the increase in government spending cited as one of the driving factors.
This marked the highest growth in the past five years. Historically, first-quarter economic growth over the last five years saw a contraction of 0.69 percent in 2021.
BPS also noted that the 21.81-percent growth in government consumption was driven by an increase in personnel spending through the payment of Eid holiday bonuses, as well as spending on goods and services, including the Free Nutritious Meals (MBG) program.
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Translator: Ahmad Muzdaffar, Raka Adji
Editor: M Razi Rahman
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