Indonesia's economy expands 5.5% in third quarter on fiscal stimulus

Indonesia's economy expanded at a 5.5% year-on-year pace in the third quarter, according to official data, as elevated public spending helped offset domestic and external pressures on growth.

Government consumption emerged as a key driver of the expansion, with authorities deploying fiscal resources to bolster economic activity across the region's largest economy. The performance underscores Jakarta's reliance on budgetary measures to maintain growth trajectories as global demand conditions remain uncertain.

The third-quarter result reflects Indonesia's broader economic resilience, though the Southeast Asian nation continues to navigate challenges including inflation concerns and volatile commodity prices. Policymakers have signaled their commitment to supporting growth through the remainder of the fiscal year.

The expansion positions Indonesia among the faster-growing major economies in the region, though economists continue to monitor whether consumption and investment can sustain momentum independent of government support in coming quarters.