Global Scans · Indonesia · Weekly Summary

WHAT'S NEXT?: Indonesia's GDP is forecast to grow at 5% a year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment. She is likely to be among the star economic performers for at least the next decade but at the same time faces great challenges to overcome past political and social issues.

• [New] The relocation of the seat of government from Jakarta to Nusantara, East Kalimantan, is a crucial component in Indonesia's grand design towards achieving the Golden Indonesia 2045 Vision that aims to move from a middle-income country to a high-income country. jennifer.stone@trade.gov
• [New] Asia's middle class will reach 3.5 billion people by 2030 many of whom are first-time fitness equipment buyers and Google Trends data consistently shows rising search volume for home fitness equipment terms across India, Vietnam, Indonesia, and the Philippines. Persistence Market Research
• [New] By November, the contours of the COC negotiation's trajectory under Manila's watch will be clearer, and the effects of Indonesia's shift in commodity policy - and its diplomatic reverberations - will be more legible. KBA13 INSIGHT
• [New] Indonesia plans to route key commodity exports through a state-owned firm. FoodNavigator-Asia.com
• [New] In addition to Iceland, Indonesia's central bank delivered a larger-than-expected hike in interest rates, while Mauritius also tightened policy. financialpost
• [New] Indonesia is currently entering an important phase of digital transformation, where AI, cloud technologies, and intelligent connectivity will become the key foundations of future digital economic growth. theregister
• [New] As Southeast Asia's largest digital economy, valued at $130 billion in 2025 and projected to reach $360 billion by 2030 - Indonesia has simultaneously become a powerhouse for digital innovation and a prime target for cyber threats. IndoSec
• [New] Indonesia's next chapter of digital growth will be written not only in product features and platform adoption, but in whether citizens, customers, and partners believe their data is handled safely and fairly. Consultancy Asia
• [New] Indonesia will build defence capability further as Air Force receives Rafale jets. The Asia Cable
• [New] Major emerging markets like India ($4.2 trillion) and Indonesia ($1.5 trillion) are expected to reshape the global economic order in the decades ahead. Visual Capitalist
• [New] Indonesia, for its part, sees the geopolitical rivalry between the US and China not only as a challenge but also as an opportunity to persuade the two major powers to make, above all, economic concessions. Stiftung Wissenschaft und Politik (SWP)
• [New] The Digital ID project is helping Indonesia build a secure digital ID app and modernize civil registration, making it easier for millions of Indonesians to access services and opportunities. World Bank Group
• [New] Recent announcements include, Indonesia's plan to develop a 100 GW solar-plus-storage capacity, South Korea's plans to triple renewables capacity to 100 GW by 2030, and efforts to accelerate renewables projects across countries including the Philippines, Thailand and the UK. Ember
• [New] Indonesia will keep strengthening defence capabilities as a deterrent while handing six Rafale fighter jets and other hardware to the Air Force. The Asia Cable
• [New] For India and Indonesia, the monsoon season is fundamental to food security, water availability, and ecological stability, and the super El Nino may present a significant disruption. ISCIENCES
• [New] Nickel is expected to remain in oversupply through 2026 on the back of high output from Indonesia and soft demand from the manufacturing and battery segments. Investing News Network (INN)
• [New] Australia will purchase 250,000 tons of agricultural grade urea from Indonesia to help fill gaps in its supply left by disruptions from the war in Iran. ADMISI
• [New] Indonesia's tradition of nonalignment means it will keep defence relationships diversified, and domestic politics could slow progress on sensitive issues like overflights. Military.com
• Multinational corporations with Vietnam operations (manufacturing, outsourced services, R&D centers) are in Q2-Q3 2026 contingency-planning mode: assessing alternate sourcing in Thailand, Indonesia, or India; reviewing contract force-majeure clauses for tariff-driven supply disruptions. Bao Quoc Dan
• Midweek, Indonesia's central bank is expected to hold rates steady, highlighting a cautious policy approach as global uncertainties mount. financialpost

Last updated: 01 June 2026