Global Scans · Indonesia · Weekly Summary

WHAT'S NEXT?: Indonesia's GDP is forecast to grow at 5% a year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment. She is likely to be among the star economic performers for at least the next decade but at the same time faces great challenges to overcome past political and social issues.

• [New] Fastest Growing Region: Asia Pacific remains the fastest-growing region through 2033, supported by urbanization and expanding organized retail across India, Vietnam, and Indonesia. Persistence Market Research
• [New] Indonesia's IOH, backed by $800 million from Ooredoo, plans a 1 GW AI factory and neocloud platform, while SK Telecom reports AI data center revenue nearly doubling as it pursues a 15 GW infrastructure goal. The Art of CTO
• [New] Indonesia, with coal supplying approximately 68% of national electricity, has added the third-highest volume of new coal capacity in the world in 2024, bringing its fleet to 54.7 GW and another 26.7 GW planned by 2030. OBSERVER RESEARCH FOUNDATION ( ORF )
• [New] Seasonal fires have started burning in Indonesia, with impacts on regional air quality, and are expected to be enhanced in the coming weeks by El Nino, while large wildfires significantly impacted parts of North America and Eurasia. LinkedIn
• [New] Palm oil's risk sits on the export side: Indonesia and Malaysia supply around 87.5% of world exports, with no third origin at scale to fill a gap, thin carryover stocks, and Indonesia's biodiesel mandate creating a strong incentive to curb exports. Fitch Solutions
• [New] With shared Austronesian heritage and interests in Indian Ocean maritime security, the growing relationship could create new opportunities for economic, diplomatic and defence cooperation between Indonesia and its African neighbour. Indonesia Council
• [New] In Indonesia, many women living close to the ocean had never been given the opportunity to swim, dive or envision careers linked to marine science and conservation. Reasons to be Cheerful
• [New] Rock paintings in Indonesian caves could date back around 70,000 years, yet their remarkable state of preservation may be attributed at least in part to a stable microclimate, far from rain, heat, and wind. New Atlas
• [New] Indonesia is working toward an all electric public bus fleet by 2045 while promoting electric motorcycles and passenger vehicles. Modern Diplomacy
• [New] Indonesia's response has been to harden its military posture at Natuna and to deepen its defence relationships, including with the United States and India; the August risk is a maritime incident that converts a chronic irritant into an acute nationalist moment during the national-day period. KBA13 INSIGHT
• [New] Passenger EV sales are forecast to more than double between 2025 and 2035, with growth broadening beyond Vietnam and Thailand as Malaysia and Indonesia gain share. Fitch Solutions
• [New] Solar capacity in Peninsular Malaysia and Indonesia's Sumatra will each pass 30 GW, while land-constrained Singapore maximises its potential to reach over 6 GW by 2040. Ember
• [New] The APG creates significant economic opportunities for resource-rich countries such as Indonesia and Lao PDR by allowing them to monetise their renewable resources through electricity exports. Ember
• [New] Singapore could experience hazy conditions if fires in Indonesia's Sumatra and Kalimantan intensify. CNA
• [New] The narrative that China's economic rise will lift all boats has not changed the Indonesian public perception that Chinese investment and trade are a threat to national economic sovereignty and primarily benefit Chinese, rather than Indonesian, interests. Hudson Institute
• [New] Indonesia's BMKG weather agency has warned that the 2026 dry season will be more intense and prolonged than usual, with a higher risk of wildfires and drought due in part to El Nino. Al Jazeera
• [New] Indonesia sees an increased risk of drought, as do parts of southern Africa. Wired
• [New] Latex, the primary material for balloons, is derived from natural rubber, whose global prices have fluctuated by as much as 25-30% annually due to climate disruptions in major producing countries such as Thailand and Indonesia, per data from the Association of Natural Rubber Producing Countries. Persistence Market Research
• [New] Cooperation within BRICS provides strategic opportunities for Indonesia to access agricultural technology, development financing, and research networks that support the transformation of the food sector. idnfinancials.com
• Droughts and wildfire risks rise during El Nino, particularly across much of Australia, northern parts of South America and in Asian countries like Indonesia. Euronews
• For 2027, AMRO expects the Philippines to be the second fastest-growing economy in ASEAN, behind Vietnam, and ahead of Indonesia, Cambodia, Laos and Malaysia, Singapore, Myanmar and Thailand, and Brunei. BusinessWorld Online
• For ASEAN - or the Philippines, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Timor-Leste, and Vietnam - AMRO hiked its 2026 growth forecast to 4.8% from 4.6% previously but kept it 4.8% for 2027. BusinessWorld Online
• Indonesia and Turkey have strengthened cooperation on labour issues by adopting a 2026-2027 Joint Action Plan, covering labour policy, digital services, workplace safety and international cooperation. Bernama

Last updated: 31 August 2026