Indonesia economy at a glance

Latest figures for Indonesia: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Indonesia on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	3.2%	October 2026	3.3% September 2026
Core inflation (excluding food and energy)	2.6%	October 2026	2.8% September 2026
Real GDP growth (year on year)	5.5%	Q3 2026	5.3% Q2 2026
Policy rate (Bank Indonesia)	5.75%	November 2026	5.75% October 2026
Unemployment rate	4.8%	August 2026	4.7% May 2026
10-year government bond yield	7.64%	October 2026	7.11% September 2026
Manufacturing PMI (S&P Global Indonesia Manufacturing PMI)	54.0	October 2026	52.4 September 2026
Retail sales (year on year)	1.3%	August 2026	1.1% July 2026
Industrial production (year on year)	1.7%	June 2026	−5.6% March 2026
House prices (year on year)	0.7%	Q2 2026	0.6% Q1 2026
Stock market (Jakarta Composite Index (IDX Composite / JCI))	5,050	November 2026	−40.6% over 12 months

Questions and answers

What is the inflation rate in Indonesia?

Indonesia's annual inflation rate was 3.2% in October 2026, unchanged from September 2026.

What is the interest rate in Indonesia?

The Bank Indonesia BI-Rate is 5.75% (as of November 2026). The next rate decision is due on 18 November 2026.

How fast is Indonesia's economy growing?

Indonesia's real GDP grew 5.5% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 5.1% in 2026 and 5.1% in 2027.

What is the unemployment rate in Indonesia?

Indonesia's unemployment rate was 4.8% in August 2026, up from 4.7% in May 2026.

What is Indonesia's 10-year government bond yield?

Indonesia's 10-year government bond yield averaged 7.64% in October 2026.

How much government debt does Indonesia have?

Indonesia's government debt is about 40.9% of GDP (latest annual figure), with a budget deficit of 2.9% of GDP.

What is Indonesia's credit rating?

Indonesia's sovereign credit ratings: S&P BBB, Moody's Baa2, Fitch BBB.

What is the VAT rate in Indonesia?

Indonesia's standard VAT rate is 12% (2026 rules).

What is the corporate tax rate in Indonesia?

Indonesia's corporate income tax rate is 22.0% (2026 rules).

Who leads Indonesia?

Indonesia is led by President Prabowo Subianto (head of state and government); Vice President Gibran Rakabuming Raka. Next election: General (presidential and legislative) elections due February 2029.

Outlook

The IMF lifted its 2026 growth forecast for Indonesia to about 5.1% in October, and Bank Indonesia sees 4.9-5.7%, supported by state spending and investment. Downside risks are capital flight linked to the MSCI review, a deficit pushing against the 3% legal cap, a wider current-account gap with oil near $100+, and El Nino-driven food inflation; analysts at Goldman Sachs estimate up to $13bn of equity outflows if Indonesia is reclassified. Upside would come from a stabilising rupiah that lets BI resume easing.

Why Indonesia matters for the world economy

Indonesia is the world's largest exporter of coal and palm oil and dominates global nickel supply, so its export controls, the new Danantara single-gate export channel and downstreaming policy directly affect energy costs in China and India, cooking-oil prices across South Asia and Africa, and the EV-battery supply chain. As the largest economy in ASEAN and a heavily foreign-owned bond market, it is a bellwether for emerging-market risk: the October 2026 equity crash and rupiah slide near record lows can spill into regional currencies and EM funds. China, the US, India, Japan and Singapore are the most exposed through trade and finance.

Politics

Prabowo, two years into his term, commands a dominant parliamentary coalition but faces market doubts over fiscal discipline, state-directed investment through the Danantara superholding and central-bank independence: finance minister Purbaya was replaced by Suahasil Nazara in September, and BI governor Perry Warjiyo resigned in July, succeeded by Destry Damayanti. In October an MSCI consultation on downgrading Indonesia to standalone-market status triggered a stock crash and renewed rupiah pressure, while a 10% US tariff (imposed July over forced-labour allegations) weighs on exports.

System: Unitary presidential republic.

Economy and taxes

GDP: US$1,446 billion
Population: 284.7 million
Government debt: 40.9% of GDP
Budget balance: −2.9% of GDP
Current account: −0.1% of GDP
Exports: 22.2% of GDP
Main exports: Coal, palm oil, nickel and ferroalloys/steel, LNG, machinery and electronics, textiles and footwear, automobiles, rubber
Top export markets: China (24.2%), United States (10.6%), India (8.2%), Japan (7.5%)
IMF growth forecast: 5.1% in 2026, 5.1% in 2027
IMF inflation forecast: 3.3% in 2026, 2.8% in 2027
Currency: IDR
Freelancer tax: A self-employed person earning the average wage (IDR 39,960,000 a year) pays about 2.3% of it in income tax and social contributions (2026 rules)
Top income tax rate: 35.0%
Gold reserves: 87.1 tonnes (August 2026)
Energy self-sufficiency: 178% (2024)

Recent news

4 November 2026 Prabowo removes his chief of staff after police name him in a wiretapping case Antara
President Prabowo dismissed Presidential Chief of Staff Listyo Sigit Prabowo after police named him and two other officers as suspects in the alleged illegal wiretapping of the president and other leaders since 2025. Lt Gen Ariyo Windutomo was named acting chief of staff.
3 November 2026 Jakarta stocks fall to a six-year low as growth worries mount Trading Economics
The Jakarta Composite dropped to about 4,907, its lowest since 2020, leaving it down nearly 20% in four weeks and about 40% in a year. Rising food prices, a lower 2026 growth projection of 5.4–5.5% and political tensions weighed, while an index reform aimed at MSCI's concerns limited losses.
2 November 2026 Indonesian inflation eases to 3.23% as core prices cool Trading Economics
Consumer prices rose 3.23% from a year earlier in October, down from 3.28% and slightly below forecasts, while core inflation fell to a six-month low of 2.56%. Food inflation climbed to a five-month high of 4.82%, but the rate stayed inside Bank Indonesia's 1.5–3.5% target.
2 November 2026 Indonesian factory growth hits a 31-month high on record export demand Trading Economics
The S&P Global manufacturing PMI rose to 54.0 in October from 52.4, the fastest expansion since March 2024. New orders grew at their quickest pace since 2021 and export orders rose by the most since the survey began in 2011, while input costs and selling prices rose faster.
24 October 2026 Indonesia cuts gas exports to Singapore to feed its own industry ANTARA
The upstream regulator SKK Migas cut pipeline gas flows to Singapore by 31 billion British thermal units a day from 24 October to keep more gas for local petrochemical plants. Officials said other long-term export deals will face stricter review.
21 October 2026 Bank Indonesia holds at 5.75% but lifts its deposit rate to shore up the rupiah Databoks (Katadata)
BI kept its benchmark rate unchanged for a fourth meeting, against market expectations of a hike, but raised its deposit facility rate by 25bp to 5.00% and expanded hedging incentives to draw in foreign money, with the rupiah near 18,000 per dollar.

Headlines and summaries are compiled daily from the linked reports with AI assistance.