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Analysis by Region - Emerging Markets - Indonesia

Publisher Oxford Economics
Published Jun 26, 2025
Length 9 Pages
SKU # OFE20204903

Description

Heightened tensions in the Middle East have intensified headwinds to Indonesia's already fragile economic outlook. Although we maintain our forecast that GDP growth will slow to 4.8% y/y in 2025 and 2026, down from 5% in 2024, the risks are now tilted to the downside.

Table of Contents

9 Pages
Indonesia: Geopolitical tensions strain precarious economic outlook
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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