The Indonesian economy grew at a slower pace of 4.95 percent year-on-year (yoy) in the third quarter of 2024, according to the National Statistics Agency (BPS).

The economy grew by 5.11 percent yoy in Q1-2024 but then slowed to 5.05 percent yoy the following quarter. BPS’ latest announcement showed that the Indonesian economy had been witnessing a downward trend in its yoy gross domestic product (GDP) growth.

“What we have achieved in the third quarter is still slightly higher than the 4.94 percent growth rate that Indonesia had in Q3-2023. Cumulatively, our economy is expanding 5.03 percent in January-September,” Amalia A Widyasanti, the acting head of BPS, told a press briefing in Jakarta on Tuesday.

The processing industry became the largest economic driver in the third quarter. The industry made up 0.96 percent of the country’s 4.95 percent yoy growth that period, followed by the construction sector (0.71 percent) and trade (0.63 percent). 

The overall processing industry saw a 4.72 percent yoy expansion rate in the July-September period. The soaring domestic and overseas demand had propelled the processing industry’s growth. As a case in point, Indonesia’s food and beverage industry expanded 5.82 percent yoy as producers rushed to meet orders from both local and international buyers.

The construction sector also grew 7.48 percent yoy in Q3-2024 as Indonesia worked on its new capital project Nusantara, according to Amalia.

From an expenditure standpoint, household consumption still mainly drove Indonesia’s GDP growth in the third quarter. Household consumption, which takes into account the purchases that families made to meet their daily needs, rose 4.91 percent yoy. 

Consumption by non-profit institutions serving households — which include sports clubs and political parties — also jumped 11.69 percent yoy as Indonesia geared up for the regional elections. For reference, Indonesians across the archipelago will vote for their next governors on Nov. 27, and the candidates have gone on campaign trails over the past few months.

The preparations for the National Sports Week, a four-year event that had athletes of 33 selected fields from all over the country competing, also drove up the consumption. Even so, the non-profit institutions serving household consumption only contributed 1.29 percent of the total growth in the third quarter.