Household Consumption Growth Eases, BPS Explains Why

JAKARTA — Statistics Indonesia (BPS) announced that the Indonesian economy grew by 5.47 per cent in the third quarter of 2026. Moh Edy Mahmud, BPS Deputy for National Accounts and Statistical Analysis, said household consumption remained the main driver of economic growth in the quarter.

“Household consumption grew by 5.04 per cent and was the largest source of growth, contributing 2.62 per cent in the third quarter of 2026,” Edy said at a press conference at BPS headquarters in Jakarta on Thursday (5 November 2026).

Edy noted that this growth was also higher than the 4.89 per cent recorded in the third quarter of 2025. He said household consumption in the third quarter of 2026 was supported by an increase in the value of online goods and services transactions, greater public mobility and tourism activity, as well as various government policies to control inflation.

Nevertheless, household consumption expenditure (PKRT) growth in the third quarter of 2026 was lower than in the second quarter. BPS data put PKRT growth at 5.06 per cent in the second quarter of 2026, compared with 5.04 per cent in the third quarter.

A similar trend was evident in PKRT’s share of GDP. It stood at 54.25 per cent in the second quarter of 2025, 53.14 per cent in the third quarter of 2025 and 53.32 per cent in the second quarter of 2026. In the third quarter of 2026, PKRT’s share fell to 51.97 per cent.

“The lowest share was in the third quarter of 2022, when it reached just 50.62 per cent,” Edy said.

Edy said the decline in PKRT’s contribution in the third quarter of 2026 was a normal seasonal pattern that occurs every year. He said the increase in household consumption in the previous quarter reflected holiday periods and other occasions.

“There were many holidays in the second quarter, including the school holiday season and religious celebrations, among others. These also boosted consumption. So, although it fell in the third quarter, its share remains fairly high,” Edy added.

Meanwhile, government consumption grew by 8.95 per cent in the third quarter of 2026. This was slower than the 15.97 per cent growth recorded in the second quarter of 2026, following a 1.59 per cent contraction in the third quarter of 2025. Government consumption’s contribution to GDP also declined, from 7.57 per cent in the second quarter of 2026 to 7.28 per cent in the third quarter.

“The component with the highest growth was government consumption, driven by increased realisation of personnel spending and expenditure on goods and services,” Edy said.