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View all search resultsIndonesia economy picks up pace in third quarter
Household expenditure, the largest contributor to the growth, climbed five percent on-year, while investment jumped 6.1 percent.
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Riding the surge: Passengers wait for the arrival of a mass rapid transit (MRT) train on Sept. 4 at Blok M Station, South Jakarta. PT MRT Jakarta recorded around 4.4 million passengers using its services in July 2025, up from 3.8 million in June 2025, driven by factors such as integration with other transport modes and nearby buildings, feeder transit partners and lifestyle and tourism programs. (Antara/Muhammad Rizky Febriansyah)
I
ndonesia's economic growth picked up pace and topped forecasts in the third quarter, official data showed Thursday, thanks to strong household spending and investment.
Southeast Asia's largest economy expanded 5.5 percent in July-September, from 5.3 percent in the previous three months.
The reading beat the 5.2 percent growth projected in a survey of economists by Bloomberg.
The expansion was driven in part by a strong growth in household and government expenditure as well as investment, Statistics Indonesia official Moh Edy Mahmud told a news conference.
Household expenditure, the largest contributor to the growth, climbed five percent on-year, while investment jumped 6.1 percent.
Read also: Consumer sentiment, retail sales weaken amid cautious spending
Government expenditure grew by nearly nine percent.
Manufacturing, trade, construction and the information and communication sectors also contributed.
President Prabowo Subianto is chasing a growth target of eight percent by 2029 -- an ambitious goal that some experts warn could be hard to reach.
Read also: El Niño keeps food prices hot despite easing inflation
The latest reading showed domestic demand was "firmer" than expected, with investment and government expenditure remaining "robust", said Bank Danamon Indonesia economist Irman Faiz.
He said the expansion momentum could be carried to the fourth quarter and tipped the economy to grow 5.4 percent this year, and 5.1 percent in 2027.
