Key View

• We highlight increasing downside risks to our growth forecast for Indonesia’s power sector, attributable to the ongoing impacts of the Covid-19 pandemic, and the financial stress it has put on the state-owned utility.
• Growth will remain heavily dependent on an ongoing government commitment to support and develop the sector.
• Increasi

Key View

• South East Asia will become a key focal point for Indonesian medicine exports.
• This comes as pharmaceutical companies look beyond the Indonesian market as medicine spending in the region rises in line with the improvements to healthcare access.
• In addition, the gradual integration and harmonisation of pharmaceutical regulations

Key View

• Electric Vehicle (EV) adoption in Indonesia will experience a less rapid growth trajectory when compared to other more high-growth markets particularly in Europe, China and South Korea, due to a lack of incentives, low incomes and limited charging infrastructure.
• We expect taxi operators, ride-hailing firms and public transport

Key View

• Retail sales in Indonesia continues to contract on a year-on-year basis in July 2020, but the contractions have been improving since the lows recording in May 2020, the worst of the Covid-19-related social restrictions.
• The sale of food, beverages and tobacco is the only consumer category to post a significant improvement from the

Key View

• We at Fitch Solutions expect Indonesia’s current account deficit to narrow to 1.5% of GDP in 2020 from 2.8% in 2019 and a previously forecast 1.9%.
• Weak domestic demand due to the Covid-19 outbreak will mean that imports will continue to fall at a faster pace than exports. Moreover, the government is looking to introduce some import

Key View

• The Indonesian government has eased regulatory hurdles in the healthcare sector to attract foreign investors.
• The pandemic has highlighted the high level of healthcare inequality in the country.
• Drugmakers saw a drop in demand as people avoided visiting healthcare facilities.

Indonesia’s healthcare industry is a lucrative

Key View

• We at Fitch Solutions continue to expect Indonesia’s economy to contract by 1.3% in 2020 as a whole before recovering by 3.3% in 2021.
• Following the economy’s contraction by 5.3% year-on-year (y-o-y) in Q220, we believe that the sluggishness in activity will continue in the second half of the year as Indonesia experiences an elevated

Key View

• Despite the continued proliferation of mobile services, a renewed focus from operators on wireline broadband services will support long-term growth.
• There is a clear emphasis on media services to drive broadband subscription uptake, and there is consensus that operators will need to partner, rather than compete, with over-the-top

Key View

• The central bank, Bank Indonesia (BI) cut its benchmark seven-day reverse repurchase (repo) rate by 25 basis points (bps) at its monetary policy meeting on July 16, taking the rate to 4.00%, from 4.25%.
• We expect a low inflation environment and a stable rupiah outlook to provide room for the central bank to focus on supporting and