Indonesia posts 5.45% growth, tops G20 and launches new stimulus package

In a plenary cabinet session on October 21, officials presented a macroeconomic update showing Indonesia's GDP grew by 5.45%, surpassing the world average of 3% and ranking highest among G20 economies. The report highlighted a manufacturing PMI of 52.4, a robust trade surplus of 7.25, and consumer sentiment measured at 118.1. Labor market data indicated unemployment at 4.65%, the lowest level since 1994, while income inequality eased to a Gini ratio of 0.368.

Fiscal discipline remained intact with a budget deficit of 1.24% and foreign-exchange reserves of US$146.3 billion. To protect purchasing power, the government introduced a fourth-quarter stimulus that includes a Rp1.28 trillion “one person, one account” rollout, rice aid for 33.24 million households funded by Rp17.54 trillion, and a three-month wage subsidy of Rp300,000 for 13.3 million workers financed with Rp11.97 trillion. Additional travel discounts and VAT relief are slated for the holiday season, benefiting millions of commuters.