Mining Sector Contracts in Q1 2026, BPS Reveals the Reasons

Jakarta, CNBC Indonesia - Statistics Indonesia (BPS) has revealed that the mining sector contracted in the gross domestic product (GDP) for the first quarter of 2026. According to BPS data, the mining business field contracted by 2.14% in the first quarter of 2026, marking the deepest contraction among other business fields. BPS Chief Amalia Adhininggar Widysanti, during a press conference at the BPS head office in Jakarta on Tuesday (5/5/2026), explained the reasons behind the contraction in the mining business field’s growth. Amalia stated that the contraction in the mining sector was due to a decline in the production of mining outputs such as metal ores, oil and gas, and coal. “Mining and quarrying contracted by minus 2.14% due to, among other things, a 12.22% contraction in metal ore mining, as well as contractions in oil and gas mining, and a decline in coal production,” said Amalia. Overall, Indonesia’s economy in the first quarter of 2026 recorded a growth of 5.61% year-on-year (yoy). This growth rate was higher than the 5.39% in the fourth quarter of 2025 and the same period the previous year, or the first quarter of 2025, at 4.87% yoy. This period coincided with Eid al-Fitr. The government and companies distributed Holiday Allowances (THR), which boosted people’s purchasing power. This is evident in the continued growth of household consumption, seen in restaurants and hotels. Online transaction growth from e-retail and marketplaces also increased. The value of consumer goods imports rose by 6.12% yoy.