Indonesia

• [New] The PBoC is expected to keep the LPR rate flat following the unchanged MLF rate, while no changes are seen in policy rates in the eurozone, Canada and Indonesia.
• [New] For no other reason than proximity, Australia has taken the threat of terrorism in Southeast Asia more seriously than the United States.
• [New] While China and South Korea are leading Asia in going cashless, Indonesia and the Philippines economies are heavily dependent on tangible currencies.
• [New] The US, China, India, Indonesia, and South Korea will probably be the only major economies to exceed pre-pandemic GDP levels by the end of 2021.
• [New] The Hannover Messe opens opportunities to conduct National Branding on Indonesia's position as a new power in the world economy and global manufacturing player.
• [New] Many Indonesians had high hopes for rapid growth, especially since President Widodo had pledged to bring Indonesia back to an annual economic growth rate of 7% (y/y).
• [New] Malaysia, Vietnam, Indonesia and India have purchased Su - 30s, and Myanmar is expected to take delivery of its first batch of the multirole combat aircraft soon.
• Employer-sponsored healthcare benefit costs are expected to go up in excess of 8% in 2021 - China, India, Indonesia, Malaysia (12.5%), New Zealand, Philippines, Singapore, Thailand and Vietnam (10.2%).
• Malaysia, Indonesia and the Philippines are among the most at risk of the heat-related loss of labour capacity.
• The country with the largest STAR score is Indonesia, where eliminating threats from farmland habitat loss, logging and hunting could reduce global species extinction risk by 7%.
• Last year, a projection from Blomberg Economics saw Indonesia overtaking Germany as the fifth largest economy in 2045, just below China, the United States, and India.
• The defense spending of Indonesia is expected to rise nearly 20% in 2020 from the previous year according to a plan for the modernization of its armed forces.
• MFF Indonesia will focus on district / local level management of coastal ecosystems, especially to improve awareness regarding the ability of coastal ecosystems to cope with climate change impacts.
• Indonesia has an ambitious plan to reduce marine plastic leakage by 70% by 2025, as well as achieve near-zero plastic pollution by 2040 through transitioning to a circular economy for plastics.
• African swine fever is seeing a resurgence in Indonesia's southern East Nusa Tenggara province, government officials say, undermining food security and fueling fears that the viral disease could jump to other species.
• In Indonesia, a surge in new daily COVID-19 cases will result in a weak first quarter, indicating weak consumer confidence and retail sales, which is likely to push back recovery by about three months.
• Facebook and Google have plans to build two new undersea cables that will connect Singapore and Indonesia with North America, bringing faster internet connection to Southeast Asia.
• In Indonesia, the world's most populous Muslim-majority nation, pro-IS groups remain a threat two years after the ultra radicals were defeated in Syria and Iraq.
• The Responsive COVID-19 Vaccines for Recovery (RECOVER) project will fund the purchase of at least 65 million doses of COVID-19 vaccine for priority groups determined by the Indonesian government.
• Chinese tourists with UnionPay cards travelling to Southeast Asia will find it easier to shop at FJB stores in Singapore, Malaysia, and Indonesia.
• China, Japan, Indonesia, and Australia are among the prominent countries where construction market is expected to witness prominent growth over the forecast period.
• Investments will focus on strategic sectors in Indonesia, including infrastructure, roads, ports, tourism, agriculture, and other promising sectors that have potential for growth and can contribute to growth as well as economic and social progress.

Last updated: 19 April 2021