Macroeconomic Outlook Report: Indonesia

Macroeconomic Outlook Report: Indonesia

Summary

Mining, manufacturing, and utilities activities contributed 31.6% to Indonesia’s gross value added (GVA) in 2024, followed by wholesale, retail, and hotel activities (16.1%), and agricultural activities (13.0%). In nominal terms, the three sectors are forecast to grow by 7.2%, 7.1%, and 7.2%, respectively, in 2025.

Five major cities in Indonesia generated around 24.2% of the country’s GDP and housed 7.3% of the country’s population in 2024, according to GlobalData’s cities database estimates.

On August 16, 2024, President Joko Widodo proposed an IDR400.3 trillion ($25.5 billion) infrastructure budget for 2025, focusing on the new capital Nusantara and projects in the education, health, energy, connectivity, and food sectors.

Scope

• Macroeconomic Country Outlook Reports evaluate a country's investment potential through its political, economic, social, technological, legal, and environmental (PESTLE) framework.
• This comprehensive analysis offers a holistic view of the economy, serving as a strategic tool to understand market dynamics, business potential, and operational direction. Each PESTLE factor is examined based on four parameters: current strengths, current challenges, future prospects, and future risks.
• These insights support strategic planning by highlighting opportunities and risks within the economy, helping businesses and investors make informed decisions.
• The report aims to provide a detailed understanding of the country's macroeconomic environment to facilitate effective decision-making and strategy development.

• Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
• PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
• Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
• This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.