Indonesia's economic growth slows in third quarter

BSS
Published On: 05 Nov 2025, 13:26

JAKARTA, Nov 5, 2025 (BSS/AFP) - Indonesia's economy expanded more slowly in the third quarter following nationwide protests over economic inequality and weakening household consumption, according to official data released on Wednesday.

Southeast Asia's largest economy expanded 5.04 percent between July and September, faster than the 4.95 percent growth in the same period last year, but slightly lower than the 5.12 percent expansion in the second quarter, according to Statistics Indonesia, the country's statistics agency.

Indonesia's economic growth was primarily supported by household consumption, which makes up more than half of the country's economic growth, Statistics Indonesia senior official Mohammad Edy Mahmud told a news conference.

However, household consumption growth of 4.89 percent in the third quarter was slower than the same period last year.

Finance Minister Purbaya Yudhi Sadewa said Monday he remained optimistic that Indonesia would meet the target of 5.2 percent growth by the end of 2025, despite the impact of the protests.

Exports however showed significant growth, expanding 9.91 percent in the third quarter despite the general slowdown.

In September, Indonesia's central bank announced a surprise interest rate cut as it sought to boost economic growth following the social unrest.

 

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