Indonesia Q3 GDP growth at 5.47%, beats expectations

Indonesia's economy expanded 5.47% in the third quarter of the year, surpassing expectations and official data revealed on November 5. This outpaced the 5.18% growth forecast predicted by a Reuters poll. The country's economic expansion in the preceding second quarter stood at 5.29%. As Southeast Asia's largest economy, Indonesia has faced headwinds this year, including waning investor confidence due to scrutiny over the government's fiscal policies and broader economic strategies.

The statistics bureau attributed the growth to various sectors, notably manufacturing, which saw an increase in biodiesel production as Indonesia's mandatory biofuel program expanded. The 2026 state budget anticipates a 5.4% growth rate, though Finance Minister Suahasil Nazara suggested it could potentially exceed that mark, reaching 5.5% this year.

This projection aligns with Bank Indonesia's GDP growth outlook, which currently ranges between 4.9% and 5.7%. During a recent meeting, the central bank confirmed the domestic economy's resilience but emphasized the need for additional strengthening. President Prabowo Subianto, who assumed office two years ago, has set a target to boost economic growth to 8% by 2029.