Indonesia - Economic Forecasts - 2018-2020 Outlook

Indonesia's economy is expected to advance 5.2% in 2018, the same as in 2017. Investment is projected to increase further, due to the ongoing recovery in commodity prices, and improved investor confidence after the country was upgraded to the investment grade by all the major agencies. At the same time, private consumption is seen rising amid moderate inflation and a robust labor market. Meanwhile, net exports may drag on growth as import-intensive investment remains robust, also due to the ongoing streamlining of import processes. Inflation is seen at 3.5% on the assumptions that there is no extreme weather disrupting food production. The rupiah is expected to remain under pressure amid global uncertainty, including the Fed’s decision to raise its reference rate and intensifying trade disputes. The central bank is seen tightening further this year, depending on how domestic and global developments play out and how aggressive is the normalization of US monetary policy. This page has economic forecasts for Indonesia including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Indonesia economy.