Economists Predict Indonesia’s Economy Grew 5% in Q3: Reuters Poll

According to a Reuters poll, Indonesia’s economy likely grew at a steady annual pace of 5.00% in the third quarter, supported by household spending and investment, while exports got a temporary boost from firms shipping goods ahead of U.S. tariffs. The poll, conducted from October 27 to November 3 by 22 economists, estimated that Southeast Asia’s largest economy expanded by 5.00% in the July-September quarter, slightly below the 5.12% growth in April-June. Gross domestic product (GDP) growth was projected to have eased to 1.40% on a quarterly basis, down from 4.04%. Official data will be released soon. Economist Adam Ahmad Samdin stated that investment and consumption, driven by policy support, were key in Q3, and retail sales showed resilience, possibly due to policy stimulus. Retail sales increased 4.7% in July and 3.5% in August, surpassing the second quarter’s average growth. A government fiscal stimulus package of 24.44 trillion rupiah contributed positively, along with a 1.5% billion-dollar cash injection. Moody’s economist Jeemin Bang suggested that fiscal policies should address structural issues like youth unemployment and stagnant wage growth for sustainable benefits.