Indonesia Third Quarter GDP Growth Hits 5.47 Percent
Indonesia's economy grew by 5.47 percent in the third quarter, driven by manufacturing and palm oil processing for the mandatory biodiesel program.
The Government of Indonesia reported that the economy grew by 5.47 percent year-on-year in the third quarter, exceeding analyst expectations of 5.18 to 5.2 percent. This figure marks an acceleration from the 5.29 percent growth recorded in the second quarter, although quarter-on-quarter growth slowed to 1.6 percent from 3.7 percent in the previous period.
Manufacturing drove the expansion, specifically the processing of palm oil for fuel following the expansion of the national mandatory biodiesel program. This growth occurred despite weak investor sentiment stemming from stock market downgrade risks and scrutiny of government fiscal plans.
Finance Minister Suahasil Nazara indicated that annual growth could reach 5.5 percent, which would slightly exceed the 2026 state budget projection of 5.4 percent. This aligns with the broader outlook from Bank Indonesia, which set a GDP growth range between 4.9 and 5.7 percent. President Prabowo Subianto has established a long-term target to increase economic growth to 8 percent by 2029.
