Jakarta (The Indonesian News) — Indonesia’s manufacturing sector recorded a significant surge in the third quarter of 2026, posting its strongest third-quarter growth since 2012, according to the latest report from Statistics Indonesia (BPS).
As one of the main pillars of the national economy, manufacturing accounts for nearly 20 percent of gross domestic product (GDP). The sector contributed 1.2 percentage points to Indonesia’s year-on-year economic growth in the third quarter of 2026.
Indonesia’s total GDP reached Rp6,741.01 trillion during the quarter, with manufacturing accounting for approximately 19.22 percent of the total value added.
BPS Chief Amalia Adininggar Widyasanti said manufacturing expanded 5.87 percent in the third quarter compared with the same period a year earlier.
“Manufacturing made the largest contribution to GDP growth on the production side. Its performance in the third quarter of 2026 was particularly strong, with annual growth reaching 5.87 percent. This was in line with a pickup in manufactured goods exports, which grew 11.71 percent year-on-year. As a result, manufacturing outperformed the overall economy, which grew 5.47 percent,” Amalia said, Friday, November 6, 2026
She added that the sector’s growth marked its strongest performance in a third quarter since 2012. The expansion was driven primarily by non-oil and gas manufacturing, which grew 5.88 percent year-on-year.
The main subsectors supporting manufacturing growth included food and beverage production, which expanded 7.09 percent; chemicals, pharmaceuticals and traditional medicines, up 8.10 percent; and basic metals, which grew 9.94 percent.
Manufacturing Business Outlook Remains Expansionary
The sector’s strong performance was also reflected in the Manufacturing Business Conditions and Outlook Index (IKBM), which BPS said had continued to improve since the fourth quarter of 2025.
“The IKBM stood at 52.75 in the third quarter of 2026, strengthening from the previous quarter and remaining in expansionary territory,” Amalia said.
The index had registered 52.67 in the second quarter of 2026, compared with 52.21 in the fourth quarter of 2025.
The manufacturing sector’s positive performance helped lift Indonesia’s overall economic growth to 5.47 percent year-on-year in the third quarter of 2026, up from 5.29 percent in the second quarter of 2026 and 5.04 percent in the third quarter of 2025.
On a cumulative basis, Indonesia’s economy grew 5.45 percent in the first three quarters of 2026 compared with the same period a year earlier.
Source: Statistics Indonesia (BPS)
