Indonesia’s economy picks up pace in Q3

Indonesia's economy showed a stronger performance in the third quarter, surpassing expectations, official data revealed on Thursday. The Southeast Asian nation's growth rate expanded to 5.5% from 5.3% in the previous quarter, outpacing the 5.2% forecast by Bloomberg's survey of economists. Statistics Indonesia's Moh Edy Mahmud attributed this growth to robust household and government spending, as well as a surge in investment, according to a news conference.

Household expenditure, the primary driver of the growth, increased by 5% year-on-year, while investment jumped by 6.1%. Government expenditure grew by nearly 9%. The expansion was not limited to these sectors alone; manufacturing, trade, construction, and the information and communication sectors also played a role.

President Prabowo Subianto aims to achieve an 8% growth target by 2029. This ambitious goal, however, has been met with skepticism from some experts who question its feasibility. Irman Faiz, an economist at Bank Danamon Indonesia, suggested that domestic demand was stronger than anticipated, with investment and government spending remaining robust. He also noted that the momentum could continue into the fourth quarter, potentially boosting Indonesia's growth to 5.4% this year and 5.1% in 2027.