Finance1 min read

Indonesia Q3 GDP growth at 5.47%, beats expectations

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In short

The third-quarter growth of 5.47 per cent topped both the previous quarter's pace and market expectations. Bank Indonesia noted that while the domestic economy remains resilient, it still requires further strengthening within its projected growth range of 4.9 per cent to 5.7 per cent. Finance Minister Suahasil Nazara also indicated that economic expansion for the current year could reach 5.5 per cent, slightly exceeding the 5.4 per cent target set for the 2026 state budget.

Key points

  • Domestic expansion showed resilience despite weaker investor sentiment fueled by stock ma…: Domestic expansion showed resilience despite weaker investor sentiment fueled by stock market downgrade risks and fiscal policy scrutiny.
  • The central bank maintains a full-year economic growth projection range between 4.9 per c…: The central bank maintains a full-year economic growth projection range between 4.9 per cent and 5.7 per cent.
  • Stronger quarterly activity supports President Prabowo Subianto's broader objective of re…: Stronger quarterly activity supports President Prabowo Subianto's broader objective of reaching eight per cent annual growth by 2029.

Sources checked by our analysis pipeline: 1

Indonesia has contended with weaker investor sentiment this year amid heightened scrutiny of the government's fiscal plans and its broader policy directions.

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…

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