Analysis by Region - Emerging Markets - Indonesia
Description
We maintain our 2026 GDP growth forecast for Indonesia at 5.1%. A recently-soft US dollar is helping to mask the rupiah's vulnerability; against most other major currencies the rupiah has continued to decline. Meanwhile, economic activity will be supported by policy amid uneven domestic demand and external headwinds from higher US tariffs. Credit growth seems to be recovering, likely supported by investments from state-owned enterprises.
Table of Contents
9 Pages
- Indonesia: Forthcoming rate cuts will depend on rupiah's performance
- Forecast overview
- Recent developments
- Short-term outlook
- Key drivers of our short-term forecast
- Economic risk
- Economic risk evaluation
- Risk warnings
- What to watch out for
- Exposure to key global risks
- Long-term prospects
- Alternative long-run scenarios
- Background
- Economic development
- Structure of the economy
- Balance of payments and structure of trade
- Policy
- Politics
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