Indonesia Q3 GDP growth at 5.47%, beats expectations

Business Recorder reported that Indonesia’s economy grew 5.47% year on year in the third quarter of 2026, exceeding the 5.18% growth forecast in a Reuters poll. The latest expansion was faster than the 5.29% recorded in the second quarter, according to official data released Thursday. Manufacturing contributed to growth, including the processing of palm oil into fuel as the country expanded its mandatory biodiesel programme.

Indonesia’s 2026 state budget sets a 5.4% growth objective, while Finance Minister Suahasil Nazara has said growth could edge above it to 5.5%. That projection is within Bank Indonesia’s outlook range of 4.9% to 5.7%, and the central bank said last month that the economy was resilient but needed further strengthening. Business Recorder also noted weaker investor sentiment amid scrutiny of fiscal plans and policy direction, alongside continuing risks of a downgrade for Indonesia’s stock market. President Prabowo Subianto has set an ambition of 8% growth by 2029.