Antara News·Indonesia·Friday, November 6, 2026 at 03:19 AM UTC

Indonesia's wildfires weigh on forestry, regional growth: BPS

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Imamatul S, Rahmad Nasution

Jakarta (ANTARA) - Indonesia's forestry subsector contracted 2.52 percent in the third quarter as wildfires weighed on economic activity in affected regions, Statistics Indonesia (BPS) said.

“Wildfires have also reduced some economic activity, particularly in affected provinces,” BPS Deputy for Accounts and Statistical Analysis Moh. Edy Mahmud said here Thursday.

Forestry's performance deteriorated sharply from the previous quarter, when the subsector recorded growth of 6.02 percent, Edy said.

The slowdown also weighed on economic growth in regions affected by wildfires, particularly Kalimantan.

Kalimantan's economy grew 3.96 percent year on year in the third quarter, down from 4.68 percent in the same period of 2023.

Agriculture, which includes forestry, is one of Kalimantan's main sources of economic growth, according to BPS data.

However, Edy said the impact of wildfires on national economic growth remained relatively limited.

“The national impact is not particularly visible, although growth has been somewhat constrained in several affected provinces,” he said.

Beyond regional economic activity, wildfires also contributed to increased spending by nonprofit institutions serving households (NPISH), Edy said.

BPS recorded NPISH spending growth of 5.02 percent year on year in the third quarter, exceeding the rate recorded in the same period last year.

Edy attributed the increase partly to social and humanitarian organizations providing assistance and responding to natural disasters.

Indonesia's economy grew 5.47 percent year on year in the third quarter, accelerating from 5.29 percent in the second quarter.

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