Indonesia’s national statistics agency put the country’s third-quarter economic growth at 5.47% in 2026 compared with the same period a year earlier, up from the previous quarter’s annual rate of 5.29%.
The July-to-September result was also above the 5.04% year-on-year growth recorded in the same quarter of 2025. It remained below the 5.61% rate posted in the first three months of 2026.
Across the first nine months of this year as a whole, output grew by 5.45% compared with January to September 2025. That cumulative measure covers three quarters; it is not a full-year result.
On a separate quarter-on-quarter comparison, output was 1.59% higher than in April to June. That figure is not seasonally adjusted. It uses the immediately preceding quarter as its baseline, unlike the 5.47% figure, which compares the same quarter across two years.
Households and investment
Household consumption accounted for 51.97% of gross domestic product in the third quarter and grew by 5.04% from a year earlier. The statistics agency said it was the largest contributor to growth from the spending side of the accounts, adding 2.62 percentage points to the overall annual rate.
Investment in fixed assets, measured as gross fixed capital formation, made up 30.81% of GDP and grew by 6.06% year on year. Together, household consumption and fixed investment represented 82.78% of the economy’s output by expenditure.
Government consumption increased by 8.95% from a year earlier. That was a faster annual rate than household consumption or fixed investment, although its contribution to total growth was smaller than that of households.
The household figure was close to the 5.06% annual growth recorded in the preceding quarter. Bank Indonesia put government consumption growth in April to June at 15.97% year on year. The government-consumption rates for the two quarters describe changes over different 12-month periods; they do not show the change in spending from one quarter to the next.
Manufacturing leads production contribution
On the production side, manufacturing was the largest individual contributor to the national growth rate, accounting for 1.20 percentage points of the 5.47% increase. The sector itself grew by 5.87% year on year and represented 19.22% of GDP.
Trade contributed a further 0.94 percentage points to overall growth, construction 0.62 points, and information and communications 0.49 points. These contributions reflect both each sector’s size and its growth rate. They are different from the percentage change in output within each sector.
Trade, including wholesale and retail activity and vehicle repairs, grew by 7.14% year on year. Construction grew by 6.42%, while information and communications expanded by 7.13%.
Manufacturing, agriculture, trade, construction and mining together accounted for 65.31% of the economy. Agriculture represented 13.46% of GDP, trade 13.24%, construction 10.20% and mining 9.19%, alongside manufacturing’s larger share.
Different regional rates
Growth varied across Indonesia’s regions. Bali and Nusa Tenggara recorded annual growth of 6.08%, while Java grew by 5.84% and Sulawesi by 5.68%. Each was above the national rate for the quarter.
The agency put the value of third-quarter GDP at 6,741 trillion rupiah at current prices. On a constant-price basis, used to measure changes in real output, it was 3,633.2 trillion rupiah. The two figures are calculated on different price bases and should not be treated as interchangeable.
The latest figures measure aggregate economic activity. They do not by themselves show how the gains were distributed between households or establish how much living standards changed for individual people.
Featured image: AI-generated illustration.
