This prospective cohort study of 650 Indonesian preterm infants found that a decline in weight-for-age z-score of ≥1.2 from birth to discharge is a useful indicator for defining postnatal growth failure (PGF), identifying 7.8% of infants as having PGF. In contrast, traditional single-point indicators (weight-for-age z-score <−1.28 or <−1.5 at discharge) overestimated PGF prevalence (47.2% and 41.5%, respectively) and paradoxically identified infants with higher weight gain, questioning their reliability. The decline-based indicator was associated with lower weight gain, longer duration of parenteral nutrition, longer time to full oral feeding, and a history of invasive ventilation as a risk factor, supporting its clinical utility in Indonesian NICUs.