Indonesia GDP growth rises to 5.5% in third quarter

Indonesia's economy grew 5.5 percent in the third quarter, official data showed Thursday, as household spending, investment and government expenditure supported Southeast Asia's largest economy.

The July-September expansion rose from 5.3 percent in the previous three months and exceeded the 5.2 percent growth projected in a Bloomberg survey of economists.

Statistics Indonesia official Moh Edy Mahmud said household and government expenditure, investment, manufacturing, trade, construction and the information and communication sectors contributed to growth.

Household expenditure, the largest contributor, rose 5 percent from a year earlier. Investment increased 6.1 percent, while government expenditure grew by nearly 9 percent.

President Prabowo Subianto is seeking 8 percent growth by 2029, a target some experts warn could be difficult to reach.

Bank Danamon Indonesia economist Irman Faiz said domestic demand was firmer than expected and forecast growth of 5.4 percent this year and 5.1 percent in 2027.