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] Output is expected to rise by 37% in Indonesia in the next decade and 47% in Cambodia.
• [New] Majorities across South Korea, Japan and Indonesia see American power as a major threat.
• [New] ISIS is seen as the top threat in Indonesia, the Philippines and India.
• [New] India will overtake Indonesia to become the country with the world's biggest Muslim population.
• [New] Year-on-year CPI inflation in Indonesia is expected to average 4.3 percent in 2017.
• [New] Analysts expect 75,000 mt more ore production from Indonesia and China by the end of 2018 than there was at the end of 2014.
• [New] Indonesia has renamed the northern side of its exclusive economic zone in the South China sea and could soon use its navy to protect resource exploration.
• [New] Nigeria will overtake Pakistan, Indonesia and US to become the third most populous nation by 2050.
• [New] The Deloitte Global Manufacturing Competitiveness Index for 2016 noted that by 2020 -- Malaysia, Indonesia, Thailand, India and Vietnam -- could quite possibly rank among the top 15 manufacturing countries in the globe.
• [New] Five Asia-Pacific nations -- Malaysia, India, Thailand, Indonesia, and Vietnam -- "are expected to pierce the top 15 nations in manufacturing competitiveness over the next five years.
• [New] Militants in Indonesia and Malaysia could redouble efforts to attack police and may target foreigners.
• [New] EMarketer estimates there will be 67.1 million smartphone users in Indonesia by the end of the year.
• [New] The trilateral maritime agreement among Indonesia, Malaysia and the Philippines is expected to boost business in the Autonomous Region in Muslim Mindanao.
• [New] Along with Indonesia, Canada and Australia will lead growth output rates from until 2021.
• Indonesia will be the most affected country in the region by coastal flooding with approximately 5.9 million people expected to be affected every year until 2100.
• India, Indonesia, and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years.
• 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.
• 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.
• Total energy demand in Indonesia is expected to increase by 8.7 per cent each year up to 2024.
• Global production of the eight most consumed edible oils is expected to reach 184 mmt in the current season.
• 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.
• 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.
• FDI is expected to pick up in 2017 in line with stronger global growth and growth in Indonesia.

Last updated: 14 August 2017