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] Passenger EV sales are forecast to more than double between 2025 and 2035, with growth broadening beyond Vietnam and Thailand as Malaysia and Indonesia gain share. Fitch Solutions
• [New] Solar capacity in Peninsular Malaysia and Indonesia's Sumatra will each pass 30 GW, while land-constrained Singapore maximises its potential to reach over 6 GW by 2040. Ember
• [New] The APG creates significant economic opportunities for resource-rich countries such as Indonesia and Lao PDR by allowing them to monetise their renewable resources through electricity exports. Ember
• [New] Singapore could experience hazy conditions if fires in Indonesia's Sumatra and Kalimantan intensify. CNA
• [New] The narrative that China's economic rise will lift all boats has not changed the Indonesian public perception that Chinese investment and trade are a threat to national economic sovereignty and primarily benefit Chinese, rather than Indonesian, interests. Hudson Institute
• [New] Indonesia's BMKG weather agency has warned that the 2026 dry season will be more intense and prolonged than usual, with a higher risk of wildfires and drought due in part to El Nino. Al Jazeera
• [New] Indonesia sees an increased risk of drought, as do parts of southern Africa. Wired
• [New] Latex, the primary material for balloons, is derived from natural rubber, whose global prices have fluctuated by as much as 25-30% annually due to climate disruptions in major producing countries such as Thailand and Indonesia, per data from the Association of Natural Rubber Producing Countries. Persistence Market Research
• [New] Cooperation within BRICS provides strategic opportunities for Indonesia to access agricultural technology, development financing, and research networks that support the transformation of the food sector. idnfinancials.com
• Droughts and wildfire risks rise during El Nino, particularly across much of Australia, northern parts of South America and in Asian countries like Indonesia. Euronews
• For 2027, AMRO expects the Philippines to be the second fastest-growing economy in ASEAN, behind Vietnam, and ahead of Indonesia, Cambodia, Laos and Malaysia, Singapore, Myanmar and Thailand, and Brunei. BusinessWorld Online
• For ASEAN - or the Philippines, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Timor-Leste, and Vietnam - AMRO hiked its 2026 growth forecast to 4.8% from 4.6% previously but kept it 4.8% for 2027. BusinessWorld Online
• Indonesia and Turkey have strengthened cooperation on labour issues by adopting a 2026-2027 Joint Action Plan, covering labour policy, digital services, workplace safety and international cooperation. Bernama
• Southeast Asia is expected to surpass US$ 43.82 Million in 2026, driven by rapid digital economy growth across countries such as Indonesia, Singapore, Malaysia, Thailand, and Vietnam. Persistence Market Research
• Asia Pacific is simultaneously the fastest growing region through 2033, with India, Vietnam, and Indonesia emerging as high-growth secondary demand centers as their industrial bases mature. Persistence Market Research
• Planned data centers in Brazil, India, Mexico, Indonesia, and Spain are projected to face some of the highest operational disruption risks, with at least 75% of the examined assets currently classified as high risk. ETDatacenters
• Pakistan and Indonesia enjoyed a historic relationship based on mutual respect, shared values, and longstanding cooperation, adding that stronger economic engagement could further deepen bilateral ties. brecorder
• Massive fires have often broken out in Indonesia, fouling the air for tens of millions of people, and bushfires are a particular threat in Australia during El Nino. Yale Climate Connections
• Moody's Ratings and Fitch Ratings have cut Indonesia's credit outlook to negative, and S&P Global Ratings has warned of rising fiscal pressure. Morningstar, Inc.
• Drier weather patterns are forecast in parts of Indonesia and Southeast Asia during the monsoon season, while wetter conditions are anticipated during the rainy season from September to December in East Africa. UN News
• Indonesia, including Bali, can see unpredictable rain in July. 30 Sundays
• While Indonesia and the Philippines have raised interest rates in the face of inflationary and foreign exchange risks, India has kept them unchanged. ST
• The potential for an S&P sovereign debt rating downgrade, following earlier warnings from other agencies, would further constrain Indonesia's borrowing costs and investment climate at an already difficult moment. KBA13 INSIGHT

Last updated: 24 August 2026