Key View

• The recent announcement by Indonesia that it plans to ban the export of palm oil will put further pressure on an already distressed global vegetable oil market and this will feed through into higher food price inflation, especially if that ban is widened to include palm oil derivatives.
• We note that consumers in Asian markets are

Key View

• We at Fitch Solutions retain Indonesia’s score of 64.2 out of 100 in our Short-Term Political Risk Index, given that we expect the economy to experience a post-pandemic recovery in 2022.
• Policy continuity appears likely for now, given that President Joko Widodo enjoys still high approval ratings, and the next general elections are

Key View

• Consumer spending in Indonesia will post solid growth over 2022, after 2 years of Covid-19 related economic slowdowns.
• Both retail sales and consumer confidence indices have so far struggled to reach pre-Covid-19 levels. While there are recent signs that the situation is improving, we do note that higher inflation and Indonesia's low

Key View

• We at Fitch Solutions forecast Indonesia's economy to grow by 4.4% in 2022, following a modest growth recovery of 3.7% in 2021.
• Growth will be supported by a gradual acceleration of domestic demand as economic activity normalizes on the back of rising vaccination rates.
• However, we believe that the economy's resilience to the Covid

Key View: In our recently updated Autos Production Risk/Reward Index, Indonesia continues to outperform the Asian regional average score of 57.9 as a large vehicle production volume and a sound vehicle output growth (based on our five-year vehicle production growth outlook) significantly increases the country's appeal for automotive production

Key View

• We have revised up our growth forecasts for Indonesia’s solar sector and now expect the market to add a net capacity of over 1GW over the coming decade.
• This stems from a greater focus on solar power in the latest Electricity Supply Procurement Plan, rising investor interests and developments in the solar sector over recent months

Key View

• At Fitch Solutions, we hold a positive outlook for Indonesia’s food and beverage industry over the medium-term (2021-2025).

• We believe that this sector will continue to attract significant investments from foreign entities, especially Western fast-food restaurant chains, which will support the formalisation of the country’s

Key View

• Investment within Indonesia’s domestic pharmaceutical industry will continue at pace.
• The Indonesian market is one of the region's outperformers and therefore represents an attractive market for legacy products and generic medicine sales, despite an increasingly competitive environment.
• Moreover, it represents a strategic location