Key View

• Growth of Indonesia’s infrastructure sector will mainly be driven by road and rail projects. We expect a large portion of the pipeline to be dependent on foreign capital.
• The construction of Indonesia’s new capital in East Kalimantan will also generate opportunities, though progress of the project has been delayed by the ongoing

Key View

• The uptake of digital healthcare options is expected to accelerate in Indonesia as a result of pressures on healthcare systems from Covid-19.
• Digital health will be pushed via telemedicine to strengthen healthcare access in Indonesia.
• Telecare investment risks are likely to hold back industry growth.

Covid-19 will accelerate

Key View

• The Covid-19 outbreak will have a marked impact on Indonesia's pharmaceutical market.
• Indonesia could be a beneficiary as Covid-19 disrupts China's role in the global drug supply.
• However, a discriminatory intellectual property environment and forced localisation requirement will create a challenging environment for drugmakers.

Key View

• We at Fitch Solutions have revised down our full-year growth forecast for real growth of Indonesia’s construction sector in 2020 from 4.9% previously to 2.1%. The sector is expected to outperform the growth of the overall economy.
• Reduced construction activity is expected in 2020 due to delays and postponement of projects. However

Key View

• The short-term outlook has darkened for Indonesia’s crude oil and natural gas sectors in light of falling global oil prices and demand disruptions stemming from the Covid-19 pandemic.
• The bulk of Pertamina’s planned capex cut will be made from its upstream operations, where it had anticipated to allocate up to 47.0% of its capex this

Key View

• We at Fitch Solutions have revised down our full-year growth forecast for Indonesia’s real GDP in 2020 from 2.8% previously to -1.3%.
• Our forecast revision comes following the release of Q120 GDP data, which showed that the Indonesian economy slowed to 3.0% y-o-y from 5.0% in the previous quarter.
• Our growth revision takes into

Key View

• Strong government support and a healthy project pipeline will support long-term growth of Indonesia’s road and bridges sector.
• The ongoing coronavirus pandemic will create short-term macroeconomic challenges to the implementation of road projects.
• More structurally, difficulties in land acquisition are expected in these projects as

Key View

• With coronavirus cases rising sharply in Indonesia, we at Fitch Solutions have revised down our growth forecast for the archipelago from 5.1% to 4.8% in 2020.
• We also expect Indonesia’s current account deficit to widen from 2.6% to 3.0% of GDP in 2020 owing to the impact on trade and financial markets due to the coronavirus pandemic