Indonesia

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.

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• [New] Indonesia, Malaysia and the Philippines began joint naval patrols in their region Monday as threats from extremist groups increase.
• [New] The best performing country in terms of nickel output growth in the next four years will be Indonesia.
• Peatland fires pose considerable risks to the environment, society and economy in Indonesia.
• Tackling climate change in Indonesia will require a systematic and structural effort to transform land management.
• Financial inclusion could increase GDP by as much as 32 percent in Cambodia and by up to 14 percent for relatively large economies like Indonesia.
• Malaysia and Indonesia decided to press on the European Union to reject the discriminatory terms passed in a European Parliament on a new palm oil resolution that will hurt tens of millions of tropical farmers' livelihood.
• The LNG market in Indonesia is projected to surpass 5.9 MMT by 2025.
• E-commerce sales in Indonesia is expected to further expend in the coming years.
• Indonesia is expected to export USD4.8 billion worth of textiles and apparel to the US in 2017.
• Communities across Indonesia threatened by illicit labor recruitment must cooperate closely to eliminate a practice that facilitates human trafficking.
• Global production of the eight most consumed edible oils is expected to reach 184 mmt in the current season.
• Indonesia is expected to arise as the biggest digital economic giant in the region with potential transactions hitting Rp 1.69 quadrillion ($128.7 billion) by 2020.
• Palm oil production is forecast to expand by close to six million tonnes in 2016-17 with both Indonesia (35 million tonnel) and Malaysia (20 million tonne) recovering from previous year's adverse weather effects.
• Indonesia issued significant new mining rules last Thursday that will relax its ban on exports of nickel ore.
• The status quo in the West Papua region of Indonesia is not only unsustainable from a moral and political perspective but also continues to threaten instability in the Pacific region and poses specific risk to economic interests.
• In 2017, Indonesia's growth is expected to rise modestly to 5.1 percent.
• Consumer price inflation in Indonesia is expected to jump from 3.5 percent in 2016 to 4.3 percent in 2017.
• FDI is expected to pick up in 2017 in line with stronger global growth and growth in Indonesia.
• Trade disruptions between the United States and the East Asia and Pacific region could have negative secondary effects on Indonesia via declining demand in China and Japan.
• Developing human resources is one of the highest priorities for the government because Indonesia is expected to have a demographic bonus between 2030 and 2035.
• In 2017, Indonesia is expected to consume an estimated around 3-million tons of polyethylene / polypropylene.
• World Bank finds that a one-off, one-percentage point decline in China's economic growth could reduce Indonesia's economic growth by 0.4 percentage point after two years.
• India, Indonesia and the Philippines will not suffer from rising dependency ratios until 2040.

Last updated: 26 June 2017