2026-10-23T14:20:13

Construction Sector Growth 2026 6.68% and Inflation 3.28%: Building Materials

Construction sector growth in 2026 reached 6.68% year-on-year (y-on-y) in Q2, above national economic growth of 5.29%, according to the BPS release of 5 August 2026 as quoted by CNBC Indonesia and the National Economic Council (DEN). Meanwhile September 2026 inflation was 3.28% y-on-y (BPS, 1 October 2026), so construction grew 6.68% while consumer prices rose far more slowly than the building-material price index (construction IHPB +9.63% y-on-y in September 2026 per our article sourced from BPS). This article summarises the figures as of 23 October 2026, marks the data gaps (there is no direct building-material sales data) and separates data from homeX analysis.

Construction sector growth 2026 and September inflation data

Indicator	Figure	Release / date	Remarks	Source
Indonesia GDP Q2 2026 (y-on-y)	5,29%	5 August 2026	3.73% versus Q1 (q-to-q); H1 5.45% (c-to-c); GDP at current prices Rp6,552.1 trillion, at constant 2010 prices Rp3,576.2 trillion	BPS PDB
Construction sector Q2 2026 (y-on-y)	6.68%; contribution 0.62 percentage points	5 August 2026 (quoted by CNBC)	CNBC cites bank construction lending and construction of Koperasi Desa/Kelurahan Merah Putih (KDKMP) infrastructure as drivers	CNBC Indonesia
Construction sector per DEN	6,68%	DEN Q2 2026 analysis	DEN: drivers include acceleration of government priority programmes; H2 2026 needs to mitigate El Nino risk	Dewan Ekonomi Nasional
Gross fixed capital formation (PMTB)	6.87%; contribution 2.06 points	5 August 2026 (quoted by CNBC)	Vehicles sub-component grew 26.03%, other equipment 16.18%	CNBC Indonesia
Government consumption Q2 2026 (y-on-y)	15,97%	5 August 2026	Highest expenditure component on a y-on-y basis	BPS PDB
Java Q2 2026	Contribution 56.47%; growth 5.65%	5 August 2026	The Java provinces dominate the economic structure	BPS PDB
September 2026 inflation (y-on-y)	3.28%; CPI 112.31	1 October 2026	Monthly (m-to-m) 0.30%; year to date (y-to-d) 2.17%	BPS Inflasi
Core inflation September 2026 (y-on-y)	2,84%	1 October 2026	Core m-to-m 0.10%; y-to-d 2.07%	BPS Inflasi
Highest and lowest provincial inflation	North Sulawesi 7.59%; South Sumatra 2.55%	1 October 2026	Highest regency North Minahasa 9.05%; lowest South Central Timor 1.04%	BPS Inflasi

Figures come from the BPS Official Statistics News pages (5 August and 1 October 2026), CNBC Indonesia reporting and the DEN analysis as of 23 October 2026. The 6.68% construction figure and the 0.62 point contribution are quoted from CNBC Indonesia and DEN, not from the BPS abstract we read; CNBC writes the contribution sentence in a context where it is not fully clear whether it is the production or expenditure side. Data gaps: there is no direct building-material sales or volume data; the BPS abstract we read has no housing or building-material inflation; we did not find the Q3 2026 GDP release; the drivers in the remarks column are the sources' statements, not our analysis. The IHPB +9.63% comes from our own article sourced from BPS, and the CPI and IHPB are different indices that cannot be compared directly.

Construction grew 6.68%: what the sources say

CNBC Indonesia (5 August 2026) quotes BPS: the construction sector grew 6.68% with a contribution of 0.62 percentage points, driven by higher bank construction lending and the construction of Koperasi Desa/Kelurahan Merah Putih (KDKMP) infrastructure. DEN writes that the construction sector grew 6.68% y-on-y, driven among other things by the acceleration of government priority programmes, and says H2 2026 needs to mitigate El Nino risk. BPS says Java contributes 56.47% of the economy and grew 5.65%, while CNBC writes that the main growth sources in Java, Sulawesi and Maluku-Papua include manufacturing, trade and construction.

Inflation of 3.28% and IHPB +9.63%: two different numbers

BPS recorded September 2026 inflation of 3.28% y-on-y (CPI 112.31) and core inflation of 2.84%. In our article sourced from BPS, the building-material/construction IHPB for September 2026 stood at 111.64, up 0.19% month on month and 9.63% year on year, with asphalt, rebar and crushed stone rising the most. homeX calculation: a gap of 6.35 percentage points (9.63 minus 3.28), or about 2.9 times. The CPI measures consumer prices and the IHPB wholesale building-material prices, so the gap only illustrates that yearly building-material prices moved faster than consumer prices; it is not a measure of the cost of a house.

What it means for building-material buyers (homeX analysis, not data)

homeX analysis, not data: construction growth driven by credit, KDKMP projects and priority programmes signals higher building activity, which can sustain demand for materials such as cement, steel and asphalt; but we have no sales-volume data, so a link to retail prices cannot be proven from the figures above. In practice: compare dated retail prices at the same store, lock prices with a written quotation of limited validity for large projects, and watch the next releases. Other context is in our articles on the BI-Rate and LTV, the rupiah exchange rate and the manufacturing PMI.

Buyer tips

Record dated prices of materials at the same store every month to see your own trend.
Ask for a written quotation with a validity period for large purchases such as cement, rebar and asphalt.
Distinguish the consumer inflation figure (CPI) from the building-material price index (IHPB); they are not equivalent.
Check the next BPS release directly at bps.go.id before making a big decision.

Request a construction sector growth 2026 Indonesia quote for your project

homeX can compare several brands at once and prepare a written quote for projects, renovations or shop stock. Send your needs (brand, size, quantity, location) via WhatsApp +62 821 1818 998, or visit the homeX showroom: Priskilla Tower, 6th floor, Jl. Atang Sanjaya No.21, Benda, Kota Tangerang, Banten 15125. Visit the homeX Showroom.

Disclaimer: prices change without notice and differ by store, city, pack size, grade and promotion. Data as of 23 October 2026; always confirm with the seller before buying.

FAQ

How much did the construction sector grow in Q2 2026? According to CNBC Indonesia (quoting BPS) and DEN, the construction sector grew 6.68% y-on-y in Q2 2026; CNBC writes that its contribution was 0.62 percentage points to economic growth of 5.29%.

What was inflation in September 2026? BPS (1 October 2026): inflation of 3.28% y-on-y, 0.30% m-to-m, 2.17% y-to-d; core inflation 2.84% y-on-y; CPI 112.31.

Does construction growth make building-material prices rise? The data we read does not prove that link: there is no building-material sales volume data. The building-material IHPB rose 9.63% y-on-y in September 2026 (our article, BPS source), but its cause is not analysed there.