Indonesia's Industrial Sector Grows in Q2 2026, Mining Contracts

Indonesia’s industrial sector experienced growth in the second quarter of 2026, in line with the country’s economic expansion of 5.29% year-on-year. Only one sector, mining, suffered a contraction during the period, declining by 1.64% year-on-year. The Deputy for Balance Sheets and Statistical Analysis at Statistics Indonesia, M. Edy Mahmud, stated that the contraction in the mining sector was caused by a 9.4% drop in metal ore production and the failure of the Grasberg Block F mine in Central Papua Province to recover following a landslide in September 2025. The highest growth rate was recorded by the electricity and gas procurement sector, which surged by 10.81%, driven by increased electricity sales across nearly all consumer segments, particularly households, businesses, and industry. The accommodation and food and beverage sector also posted strong growth of 10.80%, supported by higher hotel occupancy rates and improved catering service performance, partly due to the expanding reach of the free nutritious meal programme. The information and communication sector grew by 6.97%, fuelled by the wider use of telecommunication services across various sectors including health, education, and trade. Other sectors that grew above 5% included public administration, health services, construction, trade, and education.