Research & Stock Picks

Economic Reports

26 March 2025

By

Samuel Daily Economic Insights 26 March 2025

Overview

Indonesia's economy is under significant strain as the rupiah plunged to its weakest level since the 1998 Asian Financial Crisis, prompting Bank Indonesia to intervene amid concerns over fiscal stability and global headwinds. Investor confidence remains shaky despite the high-profile launch of the US$900 billion Danantara sovereign wealth fund, as market skepticism around governance and execution persists. Equities tumbled while government bonds rallied, reflecting a flight to safety. Meanwhile, structural reforms continue with the creation of Agrinas, a new SOE holding in agriculture and fisheries, and notable leadership changes in state banks. Key sectors show mixed performance: mining remains profitable despite looming royalty hikes, LNG investment expands, and digital banking accelerates, led by BCA’s superapp. However, financial inclusion gaps persist, and insurance returns have plummeted due to capital market volatility. New investments in halal logistics, biodiesel, and tourism infrastructure offer growth prospects, although government budget cuts are weighing heavily on tourism and events.

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Daily Economic Report_26032025_EN

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Daily Economic Report_26032025_EN

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