Key View

• We expect real household spending in Indonesia will grow by a further 4.8% y-o-y over 2022, an improvement from the 2.2% growth in spending recorded in 2021.
• In 2023, household spending will moderate slightly downwards, although spending would still be strong at 4.7%.
• High-frequency data indicate a gradual recovery of consumer

Key View

• Bank Indonesia hiked its policy rate by an outsized 50bps to 4.25% on September 22 and we at Fitch Solutions expect that further increases will follow given still-elevated inflation.
• Continued monetary tightening in the US is also likely to put further pressure on Bank Indonesia to hike rates more aggressively, so as to help stave

Key View

• We have revised upwards our forecast for Indonesia’s medical device market and expect that it will be among the fastest growing in Asia.
• Singapore will continue to continue to be a significant destination for Indonesia’s medical device exports and growth will be supported by Indonesia’s attempts to become a manufacturing-based

Key View: Indonesia, the world’s most populous Muslim country, will be a key driving force in the growth of the halal market globally, as consumers' incomes rise in real terms. Similarly, the large youthful population provides the base for sustainable growth past the medium term (2022-2026). Because of these factors, we forecast robust growth for

Key View: Globally, the Covid-19 pandemic acted as a catalyst for growth and adoption of e-commerce. As the pandemic effects wane, we explore the growing attractiveness of e-commerce in Southeast Asia's three largest economies, Thailand, Indonesia and Vietnam. While we do note that rising household debt levels may lead to weakened consumer

Key View

• Bank Indonesia left its benchmark policy rate on hold again at 3.50% on June 23, but rate hikes should soon follow in the coming months amid a further tightening in global credit conditions.
• That said, we believe that Bank Indonesia will not be acting as aggressively as central banks elsewhere, as the external position and the rupiah

Key View

• Indonesia will remain dependent on medical device imports owing to its limited upstream medical device industry, although the government will seek to reduce import reliance.
• Despite downside risks caused by slowing economic growth from key trade partners, government initiatives will bolster medical device export growth.
• Medical

Both the Indonesian government and state-owned Pertamina appear to have become more bullish about their upstream prospects for 2022 amidst the current backdrop of soaring global oil and gas prices and dissipating headwinds associated with the Covid-19 pandemic. The Indonesian government has sharply raised its crude oil and natural gas production

Key View

• Indonesian vehicle sales will experience yet another year of double-digit growth in 2022 following a strong rebound in sales in 2021 as economic growth momentum spurred by rising commodity prices and private consumption raises demand for new vehicle.
• Demand for passenger vehicles (PVs) will be supported by the extension of the Sales

Key View:

• Indonesian GDP rose by 5.0% y-o-y in Q122, which was slightly faster than we had expected.
• Given the resilience of the economy in recent months, we have raised our 2022 forecast from 4.4% to 4.8%. Even so, that still leaves us below the latest Bloomberg consensus expectations for growth to come in at 5.3%.
• A withdrawal of fiscal