Indonesia’s economy picks up pace in Q3

Indonesia's economy experienced a stronger growth in the third quarter, surpassing initial estimates, according to official data released on Thursday. Led by robust household spending and investment, the nation's largest economy expanded by 5.5% from July to September, outpacing the 5.2% growth forecasted by economists in a Bloomberg survey.

This surge was primarily fueled by heightened household and government expenditure, together with an increase in investment, as reported by Statistics Indonesia's Moh Edy Mahmud. Household expenditure, the primary driver of the growth, increased by 5% year-on-year, while investment surged by 6.1%. Government expenditure also saw a notable rise of nearly 9%.

Manufacturing, trade, construction, and the information and communication sectors also played their part in this economic growth. President Prabowo Subianto aims to achieve an 8% growth target by 2029, a challenging objective that some experts consider difficult to attain. The latest figures indicated that domestic demand was stronger than anticipated, with investment and government expenditure remaining resilient.

Bank Danamon Indonesia economist Irman Faiz noted that this expansion could continue into the fourth quarter, potentially propelling the economy to grow by 5.4% in the current year and 5.1% in 2027.