Antara News·Indonesia·Thursday, November 5, 2026 at 10:01 PM UTC

BI sees Indonesia's 2026 economic growth reaching 4.9–5.7 percent

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Rizka Khaerunnisa, Raka Adji

Sabang, Aceh (ANTARA) - Bank Indonesia (BI) projects that sustained government stimulus, improving economic sentiment, and stronger growth drivers across various sectors will keep Indonesia’s economy on a solid growth path in 2026.

With these supporting factors, BI is optimistic that the country’s full-year economic growth will reach between 4.9 and 5.7 percent.

“Bank Indonesia continues to strengthen its policies across the monetary, macroprudential, and payment system areas,” Executive Director of BI’s Communication Department Ramdan Denny Prakoso said in a statement received in Sabang, Aceh, on Thursday.

He added that these efforts were being carried out in close coordination with government policies to maintain stability while promoting sustainable economic growth.

According to data released by Statistics Indonesia (BPS) on Thursday, Indonesia’s economy grew by 5.47 percent year-on-year (yoy) in the third quarter of 2026, accelerating from 5.29 percent in the previous quarter.

On the expenditure side, growth in the third quarter was primarily driven by domestic economic activity, particularly household consumption and investment.

Household consumption grew by 5.04 percent (yoy), supported by increased public mobility and various entertainment and sporting events.

Government spending surged by 8.95 percent (yoy), fueled by higher personnel expenditure, particularly civil servant salaries and allowances, as well as increased spending on goods and services, including for the Free Nutritious Meal (MBG) program.

Meanwhile, consumption by non-profit institutions serving households grew by 5.02 percent (yoy).

Investment expanded by 6.06 percent (yoy), driven by strong growth in the vehicle subcomponent, as well as robust public and private investment in line with higher capital realization. Exports also grew by 4.59 percent (yoy), supported by steady demand from key trading partners.

On the production side, all major business sectors recorded positive growth. Manufacturing and trade, the country’s primary growth drivers, expanded on the back of solid domestic and external demand.

The accommodation and food service sector also maintained steady growth, in line with rising hotel occupancy rates and increased household spending on food and beverages.

The construction sector, meanwhile, recorded strong growth, supported by ongoing public and private infrastructure projects.

Regionally, Bali-Nusa Tenggara recorded the highest economic growth in the third quarter of 2026, followed by Java, Sulawesi, Sumatra, Maluku-Papua, and Kalimantan.

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