Key View

• Indonesia’s plan to shift its capital away from Jakarta to East Kalimantan will require a substantial amount of investment in infrastructure, presenting more opportunities over the next decade.
• While the move is likely to go ahead in our view, we expect infrastructure development at the new capital site to be hindered by

Key View

• We at Fitch Solutions expect Indonesia to meet its fiscal deficit target of 1.8% of GDP for 2020, as outlined in the budget draft presented on August 16 and will mark a narrowing from the 2.0% deficit which we forecast in 2019.
• Indonesia’s 2020 budget continues to focus on investing in human capital and infrastructure, which we

• We maintain our forecasts for coal to continue playing a dominant role in Indonesia’s generation mix despite President Jokowi allegedly signalling intentions to shift away from coal, although this does represent some downside risk to our forecasts.
• We believe that developing a sustainable coal phase-out plan will require a massive overhaul of

Key View

• We at Fitch Solutions are maintaining our forecast for Indonesia’s GDP growth to come in at 5.3% for 2019.
• We believe that looser fiscal and monetary policies will boost government spending and investment in Indonesia over the coming months.
• However, net exports will likely act as a slight drag on growth as Indonesia’s main trading

Key View:

• We expect robust expansion of Indonesia’s airports infrastructure sector over the next decade. Our forecast is underpinned by the anticipated growth in air traffic arising from a greater demand for domestic air travel and the expansion of low-cost carriers.
• Due to a lack of progress in reforms, we believe plans to privatize airports