Indonesia's Third-Quarter GDP Grows 5.47%, Beating Expectations

Indonesia's economy expanded more than expected in the third quarter, supported by strong household consumption and exports that withstood a challenging global economic environment, the country's statistics bureau said Thursday. According to Sina Finance, GDP grew 5.47% year over year, above the 5.2% median forecast in a media survey and the 5.29% growth recorded in the second quarter. The latest data pointed to resilience in Southeast Asia's largest economy despite market volatility and political risks. Indonesia's growth was broadly in line with Malaysia's 5.3% and Singapore's 5.4%, while Vietnam remained the region's standout performer, with growth of nearly 10%. Domestic demand was the main engine of the $1.5 trillion economy, which has not substantially benefited from the AI boom driving growth elsewhere in Asia. The government continued providing social assistance and fuel subsidies to help consumers cope with rising global energy prices. Bank Indonesia kept borrowing costs unchanged and injected cash into state-owned banks to encourage more lending, particularly to small businesses. Strong exports of commodities such as palm oil and nickel helped Indonesia record a trade surplus for the third consecutive quarter.