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View all search resultsSumatra disaster to have mild impact on Q4 GDP growth: Purbaya
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Finance Minister Purbaya Yudhi Sadewa's face is displayed on the screen during his speech on Dec. 3, 2025, in the main hall of Indonesia Stock Exchange (IDX) building in Jakarta. (JP/Deni Ghifari)
T
he Finance Ministry expects the Sumatra disaster to only have a slight impact on gross domestic product growth in the fourth quarter.
Finance Minister Purbaya Yudhi Sadewa told reporters on Thursday that gross domestic product (GDP) would likely still exceed 5.5 percent year-on-year (yoy) in the last quarter.
“[The disaster] will affect [GDP growth] but will not significantly slow it down. When the facility and building restoration begins, it will instead push the economy slightly,” the minister said, following a hearing with House of Representatives Commission XI, which oversees financial affairs among other policy fields.
Three provinces in Sumatra saw devastation by flooding and landslides that left more than 800 people dead and thousands injured as of Thursday. Swathes of areas across Aceh, North Sumatra and West Sumatra have been severely damaged and cut off, halting much economic activity.
Purbaya previously said that GDP growth in this year’s last quarter would touch 5.6 to 5.7 percent yoy. Asked whether the disaster would get in the way of that target, Purbaya said, “the possibility is always there”.
However, he added that the odds of the disaster hitting growth significantly were small and that he still thought it would “be above 5.5 percent”.
The flash floods and landslides that caused many supply chains to collapse in the three provinces were triggered by Tropical Cyclone Senyar, a rare equatorial storm system that formed in the Malacca Strait overnight on Nov. 25 and made landfall in North Sumatra early on Nov. 26, before sweeping into Aceh and West Sumatra.
