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Analysis by Region - Emerging Markets - Indonesia

Publisher Oxford Economics
Published Aug 27, 2025
Length 9 Pages
SKU # OFE20418457

Description

We've kept our 2025 growth forecast for Indonesia at 4.8% y/y, despite the better-than-expected Q2. We're still expecting a payback in exports from the front-loading ahead of the US tariffs, and the still-soft commodity demand is likely to continue to weigh on the outlook. Credit growth also remains weak, and we expect fiscal and monetary intervention to support the economy in response.

Table of Contents

9 Pages
Indonesia: Monetary easing to continue
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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