Shining Amid Pressure, This Business Becomes Indonesia's Economic Saviour
Jakarta, CNBC Indonesia - The Central Statistics Agency (BPS) recorded that Indonesia’s economy grew by 5.61% year-on-year in the first quarter of 2026.
From the business field perspective, the highest growth was recorded in the accommodation and food and beverage provision sector, which surged by 13.14% year-on-year. BPS explained that the performance of this sector was driven by increased provision of food and beverages in line with the expansion of the Free Nutritious Meals (MBG) programme coverage as well as the momentum of the Eid holidays.
Another sector that also recorded high growth was other services at 9.91% year-on-year, supported by an increase in the number of domestic tourist trips and visits by foreign tourists.
Meanwhile, the transportation and warehousing sector grew by 8.04% year-on-year, in line with the increased mobility of the population as reflected in the rise in passenger numbers across all modes of transport.
High growth was also recorded in health and social services at 7.62% year-on-year, information and communication at 7.14% year-on-year, government administration, defence, and compulsory social security at 6.45% year-on-year, as well as wholesale and retail trade; repair of motor vehicles and motorcycles at 6.26% year-on-year.
Several other major sectors still recorded positive growth. Construction grew by 5.49% year-on-year, followed by education services at 5.18% year-on-year, manufacturing industry at 5.04% year-on-year, and agriculture, forestry, and fishing at 4.97% year-on-year.
Meanwhile, corporate services grew by 4.91% year-on-year, financial and insurance services at 4.68% year-on-year, real estate at 3.54% year-on-year, and water supply; waste management, waste, and recycling remediation activities at 0.42% year-on-year.
On the other hand, there are still two sectors experiencing contraction. Mining and quarrying fell by 2.14% year-on-year, while electricity and gas supply contracted by 0.99% year-on-year.
Although the highest growth came from the accommodation and food and beverage provision sector, Indonesia’s economic structure is still dominated by major sectors. The manufacturing industry remains the largest contributor to national GDP with a share of 19.07%.
The next position is occupied by wholesale and retail trade; repair of motor vehicles and motorcycles at 13.28%, then agriculture, forestry, and fishing at 12.67%, construction at 9.81%, and mining and quarrying at 8.69%.
Indonesia’s economy in the first quarter of 2026 is still supported by the majority of business fields that grew positively. However, the contraction in the mining sector is an important note because this sector still has a considerable weight in the national GDP structure.