Indonesia Q3 GDP growth at 5.47%, beats expectations

JAKARTA: Indonesia's economy expanded 5.47 per cent in the third quarter from a year earlier, official data showed on Thursday (Nov 5), faster than the 5.18 per cent forecast in a Reuters poll.

Indonesia's economic growth in the second quarter stood at 5.29 per cent.

Southeast Asia's largest economy has contended with weaker investor sentiment this year amid heightened scrutiny of the government's fiscal plans and its broader policy directions, as well as lingering downgrade risks on its stock market.

Growth was supported by sectors such as manufacturing, including the processing of palm oil to produce fuel as Indonesia expanded its mandatory biodiesel programme, the statistics bureau said.

The 2026 state budget projects economic growth of 5.4 per cent, although finance minister Suahasil Nazara has said it could slightly exceed that target and reach 5.5 per cent this year.

The target falls within Bank Indonesia's GDP growth outlook range of 4.9 per cent to 5.7 per cent. At its meeting last month, the central bank said the domestic economy remained resilient but required further strengthening.

President Prabowo Subianto, who took office two years ago, aims to lift economic growth to 8 per cent by 2029.