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] Indonesia, for its part, sees the geopolitical rivalry between the US and China not only as a challenge but also as an opportunity to persuade the two major powers to make, above all, economic concessions. Stiftung Wissenschaft und Politik (SWP)
• [New] The Digital ID project is helping Indonesia build a secure digital ID app and modernize civil registration, making it easier for millions of Indonesians to access services and opportunities. World Bank Group
• [New] Recent announcements include, Indonesia's plan to develop a 100 GW solar-plus-storage capacity, South Korea's plans to triple renewables capacity to 100 GW by 2030, and efforts to accelerate renewables projects across countries including the Philippines, Thailand and the UK. Ember
• [New] Indonesia will keep strengthening defence capabilities as a deterrent while handing six Rafale fighter jets and other hardware to the Air Force. The Asia Cable
• [New] For India and Indonesia, the monsoon season is fundamental to food security, water availability, and ecological stability, and the super El Nino may present a significant disruption. ISCIENCES
• [New] Nickel is expected to remain in oversupply through 2026 on the back of high output from Indonesia and soft demand from the manufacturing and battery segments. Investing News Network (INN)
• [New] Australia will purchase 250,000 tons of agricultural grade urea from Indonesia to help fill gaps in its supply left by disruptions from the war in Iran. ADMISI
• [New] Indonesia's tradition of nonalignment means it will keep defence relationships diversified, and domestic politics could slow progress on sensitive issues like overflights. Military.com
• [New] Multinational corporations with Vietnam operations (manufacturing, outsourced services, R&D centers) are in Q2-Q3 2026 contingency-planning mode: assessing alternate sourcing in Thailand, Indonesia, or India; reviewing contract force-majeure clauses for tariff-driven supply disruptions. Bao Quoc Dan
• [New] Midweek, Indonesia's central bank is expected to hold rates steady, highlighting a cautious policy approach as global uncertainties mount. financialpost
• [New] Recognizing escalating vulnerabilities in the South China Sea, Indonesia is pivoting to bolster its maritime domain awareness and naval capabilities through cooperation in autonomous technologies and interoperability. Ronin's Grips Analytics
• [New] Output has already contracted in Indonesia, and economists warn that manufacturing sectors elsewhere could follow suit once stockpiling tailwinds fade, even in countries benefiting from continued global demand for tech and AI exports. Edge and Odds -
• [New] Earlier, Coordinating Economic Affairs Minister Airlangga Hartarto said Indonesia will implement the B50 biodiesel policy to cut Rp48 trillion (US$ 2.8 billion) in subsidies by blending 50% CPO into diesel. Antara
• [New] Over the medium to longer term, we continue to expect a structural shift away from thermal coal, with declining demand and prices easing back towards US$ 120/t by end-2027. / Indonesia Westpac IQ
• [New] While Malaysia and India produce palm oil mill effluent, volumes remain insufficient to offset Indonesian supply disruptions. Discovery Alert
• [New] India and Indonesia are experiencing rapid penetration of convenience and ready-to-use products, creating new opportunities across both established and emerging categories. CNS Media
• [New] In China, Taiwan, Thailand, Indonesia, and other industrial powerhouses, many petrochemical producers have declared force majeure, invoking emergency provisions to warn that they might be unable to fulfill contractual commitments. The Atlantic
• [New] As 2026's dry season coincides with El Nino, rainfall is expected to be lower. / Indonesia Antara
• Hotter and drier conditions associated with El Nino raise risks for West Africa and Indonesia at a critical stage of the crop cycle. investing.com
• Disruptions at the Grasberg mine in Indonesia and the Kamoa-Kakula mine in the Democratic Republic of Congo have meaningfully reduced global refined copper output at precisely the moment demand is accelerating. investing.com
• Indonesia, the world's top palm oil producer, recently said it will raise the mandatory blending rate for biodiesel made from palm oil from 40% to 50%. Farm Progress

Last updated: 25 May 2026