Indonesia Readies More Incentives as Growth Dips to One-Year Low

  • Economy expands 4.95% in the third quarter, below 5% estimate
  • Consumption growth slows; exports and public spending improve

Labor-intensive industries, particularly apparel and footwear, suffer from a sharp decline in overseas demand and the influx of cheaper imports flooding the domestic market.

Photographer: Dimas Ardian/Bloomberg
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Indonesia is preparing more measures to boost purchasing power, as a spate of factory closures and job cuts weakened consumption and slowed economic growth last quarter.

Gross domestic product expanded 4.95% in the three months through September from a year earlier, the country’s statistics agency announced on Tuesday. That trails the 5% median estimate of 32 economists in a Bloomberg survey and marks the slowest quarterly pace since the 4.94% expansion posted in the same period a year ago.