Indonesia GDP Growth Disappoints as Spending Remains Subdued

  • Economists in Bloomberg survey had forecast growth of 5.2%
  • Finance minister had been upbeat on outlook as exports climb

Semarang Port, Indonesia

Photographer: Dimas Ardian/Bloomberg

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Indonesia’s economy expanded at a slower pace in the third quarter than economists expected, a disappointing outcome for the government as it struggles to boost growth in Southeast Asia’s largest economy.

Indonesia’s economy has expanded at an average of about 5 percent over the past five years, with government officials, including Finance Minister Sri Mulyani Indrawati, striking a more upbeat tone on the growth outlook. Mirza Adityaswara, senior deputy governor at the central bank, last week projected strongerBloomberg Terminal growth in the third quarter.