Indonesia’s forestry sector contracts 2.52% as fires disrupt activity
BPS said forest and land fires were holding back activity in affected provinces, particularly Central Kalimantan, although their impact was not apparent nationally.
Indonesia’s forestry sector shrank 2.52% in the third quarter of 2026 after expanding 6.02% in the second quarter, according to Statistics Indonesia (BPS), which linked the deterioration to disruption from forest and land fires.
Moh. Edy Mahmud, BPS deputy for national accounts and statistical analysis, presented the figures at a press conference in Jakarta on 5 November 2026. He said the continuing fires were also restraining economic activity in affected provinces, particularly Central Kalimantan, even though their impact was not apparent at the national level.
Kalimantan’s economy grew 3.96% in the third quarter of 2026, compared with 4.68% in the corresponding quarter of 2025. Sulawesi also recorded slower growth, at 5.68%, against 5.84% a year earlier.
Sumatra’s growth rate changed little, reaching 4.95% compared with 4.90% in the third quarter of 2025. By contrast, Java’s economy expanded 5.84%, up from 5.17% in the same period a year earlier.
Growth in Bali and Nusa Tenggara reached 6.08%, compared with 4.72% a year earlier. Maluku and Papua recorded growth of 4.42%, against 3.11% in the third quarter of 2025.
