Indonesia's economy grew 5.47% in the third quarter, beating forecasts

Growth exceeded expectations

Indonesia's economy grew 5.47% year-on-year in the third quarter of 2026, accelerating from 5.29% in the second quarter and beating analysts' forecast of 5.18%. The data was released by the statistics agency Statistics Indonesia (BPS) on Thursday, reports Anadolu. Quarter-on-quarter, growth was 1.59%, while over the first nine months the economy expanded 5.45% compared with the same period of 2025.

What drove the growth

All sectors of the economy posted year-on-year growth. The leader was accommodation and food services (+11.22%), followed by financial and insurance activities (+8.47%), other services (+8.32%), and transportation and storage (+8.03%). On the expenditure side, government final consumption grew the most, up 8.95% year-on-year.

Structure of the economy

Manufacturing remained the largest sector, accounting for 19.22% of GDP at current prices. It was followed by agriculture, forestry and fishing (13.46%), wholesale and retail trade including car repair (13.24%), construction (10.20%), and mining (9.19%); together these five sectors make up 65.31% of the economy. In quarter-on-quarter terms, the fastest growth came from manufacturing (+5.44%), construction (+5.02%) and mining (+4.11%), while among expenditure components, exports of goods and services led (+7.49%).

Nine months: contrasts

Over January–September, accommodation and food services remained the fastest-growing sector (+11.62%), followed by other services (+8.17%) and transportation (+7.23%). Meanwhile, mining contracted by 0.94% over this period, while government consumption rose 15.09% — the highest figure among expenditure components. This gap between strong government demand and stagnant mining is a notable feature of the growth structure that the BPS data records but does not explain.