Indonesia economic activity shows mixed trends amid investment growth

Indonesia's business activity in the third quarter of 2026 remained positive but experienced a slowdown. According to Bank Indonesia, the Weighted Net Balance (SBT) for business activities fell to 11.46% from 12.97% in the previous quarter. This deceleration was primarily driven by weakened performance in the agriculture, forestry, and fisheries sectors, as well as declines in transportation, warehousing, and information and communication.

Despite the broader slowdown, the manufacturing industry and several other sectors showed strength. The government is actively pursuing a strategy to boost high-quality investment through industrial downstreaming, which saw its contribution rise to 35% in Q3 2026. Efforts to improve the investment climate include streamlining licensing processes and focusing on strategic sectors like nickel and electric vehicle batteries.

In the banking sector, major institutions reported robust growth. Bank Mandiri's total assets reached Rp2,359 trillion by late August 2026, while BRI reported credit distribution of Rp1,646 trillion by the end of Q2 2026, a 16.2% year-on-year increase.