The Indonesian economy expanded 1.55% over the quarter in the third quarter of 2021 when compared to expectations of a 1.80% growth and +3.31% seen in Q2, the latest data from Statistics Indonesia showed on Friday.

Meanwhile, on an annualized basis, the country’s GDP rate grew by 3.51% vs. 4.0% expected and 7.07% previous.

Key takeaways (via Nikkei Asian Review)

“Indonesia saw a rapid surge in COVID-19 cases in July as the delta variant swept across the country, leading the government to impose tighter social restrictions, hampering the economy.”

“The finance ministry is expecting annual GDP growth of 4% this year, while Bank Indonesia, the country's central bank, said after its October meeting that it was expecting 3.5% to 4.3% growth.”

Market reaction

The Indonesian rupiah bears are relentless, as they drive USD/IDR to fresh three-month highs of 14,385 on a big miss on the country’s Q3 GDP figures. The spot is adding 0.35%, at the time of writing.