JAKARTA, The Kabar News—Indonesia’s economy expanded by 5.47 percent year-on-year in the third quarter of 2026, supported by household consumption, investment and stronger manufacturing activity, Statistics Indonesia (BPS) reported on Thursday, Nov. 5.

The pace accelerated from the 5.29 percent annual growth recorded in the second quarter. On a quarterly basis, gross domestic product increased by 1.59 percent. Indonesia’s GDP reached Rp6.74 quadrillion at current prices and Rp3.63 quadrillion at constant 2010 prices, according to the official BPS release.

Household consumption remained the economy’s main engine. It grew 5.04 percent from a year earlier and accounted for 51.97 percent of GDP. The component contributed 2.62 percentage points to overall economic growth, while gross fixed capital formation, commonly used as a measure of investment, contributed 1.91 percentage points.

Government consumption recorded the fastest annual expansion among expenditure components at 8.95 percent. However, this growth rate should not be confused with its contribution to GDP growth because government spending represents a smaller share of the economy than household consumption.

Online commerce also supported consumer activity. BPS data collected from electronic commerce providers showed that the value of online goods and services transactions increased by 22.02 percent year-on-year. Greater public mobility and tourism activity also helped sustain household spending during the quarter.

Manufacturing contributed 1.20 percentage points to Indonesia’s third-quarter growth, making it the largest contributor on the production side. Non-oil and gas manufacturing expanded by 5.88 percent year-on-year, an improvement from the previous two quarters.

Meanwhile, accommodation and food services recorded the fastest growth among business sectors, expanding by 11.22 percent. The increase reflected stronger travel, hospitality and restaurant activity.

Manufacturing exports rose 11.71 percent during the quarter. Indonesia also maintained a merchandise trade surplus throughout July, August and September.

For the first nine months of 2026, the country posted a cumulative trade surplus of US$10.61 billion. Exports reached $221.23 billion, up 5.58 percent from the same period last year, while manufacturing exports increased 8.93 percent, according to BPS trade data.

Indonesia’s third-quarter performance was slightly above Singapore’s advance estimate of 5.4 percent and Malaysia’s estimate of 5.3 percent.

China reported preliminary growth of 4.5 percent, while Vietnam estimated growth of 9.95 percent. These comparisons remain indicative because some countries’ figures are advance estimates and may undergo revision.

The latest figures indicate that domestic demand and manufacturing continued to provide a broad base for growth. Sustaining the momentum will depend on maintaining household purchasing power, productive investment and export competitiveness amid uncertain global conditions.