Indonesia’s economy grows 5.47 per cent in third quarter
Government consumption increased 8.95 per cent, with Airlangga Hartarto citing higher spending on flagship programmes.
Indonesia’s economic growth accelerated to 5.47 per cent in the third quarter of 2026 from 5.29 per cent in the second quarter. Coordinating Minister for Economic Affairs Airlangga Hartarto identified government consumption as a key driver.
At a press conference in Jakarta, Hartarto said government consumption rose 8.95 per cent, compared with 5.66 per cent a year earlier. He said spending had increased over the second and third quarters through flagship programmes including MBG and KDKMP.
Household consumption grew 5.04 per cent and made up 51.97 per cent of gross domestic product (GDP), the largest share. Manufacturing, which accounted for 19.22 per cent of GDP, expanded 5.87 per cent.
Manufacturing gains included growth of 9.94 per cent in basic metals, 8.10 per cent in chemicals and pharmaceuticals, 7.09 per cent in food and beverages, and 6.14 per cent in transport equipment and automotive.
Construction expanded 6.42 per cent. Hartarto linked that growth partly to priority projects, including the Red and White Village Cooperatives (KDKMP) and Sekolah Rakyat (People’s School).
The government expects growth momentum to hold into the fourth quarter of 2026. The manufacturing Purchasing Managers’ Index rose from 52.4 in September to 54.0 in October. Hartarto said this indicated expansion and marked the highest reading since March 2026.
He also cited an Industrial Confidence Index of 53.77, a 9.21 per cent rise in electricity sales and a Consumer Confidence Index of 118.1. Hartarto said he continued to watch food and energy price pressures and rupiah exchange-rate movements as risks to purchasing power.
