- Indonesia's GDP expanded by 5.04% YoY in Q3 (nominal growth at 7.47% YoY), primarily driven by net exports (up 57.75% YoY) and government spending (up 5.49% YoY).
- The relatively sharp decline in inventory growth was contributed to a high base in Q3-24, although on the one hand some businesses also likely opted to deplete existing stock rather than increase imports of raw materials and capital goods.
- In addition, top-performing sectors in Q3 were largely non-tradable and/or had low reliance on imported inputs.
- Q3's economic performance (in nominal terms) was largely underpinned by inflation and money supply, while real output and money velocity remained stagnant or slow. This combination, if left unaddressed, carries inherent risks, making the government's additional efforts through fiscal and monetary policies highly appropriate.
