Statistics Indonesia reported Q3 GDP +5.47% YoY, above the median market
forecast of 5.2% and up from Q2’s 5.29%. Growth held up despite market
volatility and political risk; domestic demand remains the main engine as the
$1.5 tln economy has not materially participated in the regional AI growth wave.
Regional peers: Malaysia and Singapore grew 5.3% and 5.4% respectively; Vietnam
near 10%. The government continued social transfers and fuel subsidies to
cushion consumers from higher energy prices, while Bank Indonesia left policy
rates unchanged and injected capital into state-owned banks to encourage
lending, notably to small firms. Strong palm oil and nickel exports helped
Indonesia post a trade surplus for the second consecutive quarter.
