Indonesia’s Producer Price Index (PPI) continued to increase in the first quarter of 2026, driven by rising prices across all major sectors, with mining and quarrying posting the strongest inflation growth.

Data released by Statistics Indonesia showed the general PPI for nine sectors reached 139.13 in Q1 2026, up 1.70% quarter-to-quarter (q-to-q) from 136.81 in Q4 2025. On an annual basis, producer inflation rose 3.15% year-on-year (y-on-y) from 134.89 in Q1 2025.

Mining and Quarrying Lead Producer Inflation Growth

The Mining and Quarrying sector recorded the highest quarterly and annual inflation among all sectors monitored in the report.

On a quarterly basis, the sector’s PPI increased 7.46% q-to-q, rising from 195.23 in Q4 2025 to 209.80 in Q1 2026. Annual inflation in the sector reached 6.44% y-on-y compared with 197.10 in Q1 2025.

The increase was mainly supported by rising prices across nearly all mining subsectors. Oil, gas, and geothermal mining posted the highest quarterly inflation at 14.77%, while metal ore mining recorded a 42.61% annual increase.

Coal and lignite mining became the only mining subsector to experience annual deflation, declining 3.24% y-on-y.

Manufacturing and Transportation Prices Continue to Increase

The Manufacturing Industry sector recorded a 1.01% q-to-q increase and 2.76% y-on-y inflation in Q1 2026. The sector’s PPI rose from 127.74 in Q4 2025 to 129.03 in Q1 2026.

Several manufacturing subsectors posted notable inflation growth, including:

• Other Manufacturing Industries: 3.89% q-to-q and 10.92% y-on-y
• Basic Metal Industry: 3.78% q-to-q and 8.36% y-on-y
• Chemical Industry and Chemical Products: 4.31% y-on-y

Meanwhile, the tobacco manufacturing industry remained the only manufacturing subsector experiencing deflation, declining 0.97% q-to-q and 0.71% y-on-y.

The Transportation sector also showed stronger producer inflation during the quarter. The sector’s PPI climbed 1.47% q-to-q and 3.42% y-on-y.

Air transportation recorded the highest increase among transportation subsectors, rising 2.54% q-to-q and 7.15% y-on-y. Land transportation increased 2.46% annually, while water transportation rose 2.06%.

Agriculture, Utilities, and Service Sectors Also Post Inflation

The Agriculture, Forestry, and Fisheries sector recorded 1.02% quarterly inflation and 3.25% annual inflation in Q1 2026.

The increase was driven by higher prices across all subsectors:

• Fisheries: 1.52% q-to-q and 4.98% y-on-y
• Crops and Livestock Agriculture: 0.95% q-to-q and 2.99% y-on-y
• Forestry and Logging: 0.75% q-to-q and 2.17% y-on-y

Meanwhile, the Water Supply sector recorded 2.52% q-to-q inflation and 3.85% y-on-y inflation, making it one of the fastest-growing sectors during the quarter.

The Electricity and Gas Supply sector posted lower inflation growth at 0.41% q-to-q and 1.88% y-on-y. Gas supply inflation reached 4.46% annually, higher than the electricity subsector at 1.70%.

Accommodation, Education, and Health Prices Rise Moderately

The Accommodation and Food Service sector experienced moderate inflation growth in Q1 2026. The sector’s PPI increased 0.69% q-to-q and 2.00% y-on-y.

Food and beverage services contributed the largest increase with 2.17% annual inflation, while accommodation services rose 0.99% y-on-y.

The Education Services sector posted the lowest quarterly inflation among all sectors at 0.16%, while annual inflation reached 1.69%.

Healthcare services recorded 0.86% quarterly inflation and 1.74% annual inflation, with the sector’s PPI increasing from 124.15 in Q4 2025 to 125.21 in Q1 2026.

PHOTO: FREEPIK

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].