2 min read –
Indonesia 2026 –
Resilience and Scale –
A Market You Can’t Ignore –
Here is a summary of a recent report by Danantara on Indonesia’s macroeconomics.
Danantara is Indonesia’s sovereign wealth fund (SWF).
Click here for more on SWF: Sovereign Wealth Fund – Explained – Cintasia
According to Danantara’s report, the country has successfully absorbed the shocks of 2025 and is now shifting from resilience to renewed growth momentum.
The Jakarta Composite Index rised by around 20% during 2025, reflecting improving investor sentiment despite global volatility.
While the US, Europe, China, and Japan face cooling growth and structural constraints, emerging economies, especially in Asia, are proving more resilient.
Indonesia benefits from this shift thanks to strong domestic demand, improved policy credibility, and its position within Asia’s industrial and supply-chain reconfiguration.
Domestically, Indonesia’s economy rebounded sharply in late 2025.
Consumer confidence recovered, manufacturing returned to expansion, employment improved, and domestic orders replaced export-led demand as the main growth driver.
Fiscal policy is turning clearly pro-growth, with faster budget execution and large-scale programs supporting consumption.
Monetary easing implemented in 2025 (Bank Indonesia cut interest rates by a cumulative 125 basis points) is expected to translate into stronger credit growth and business activity in 2026.
Despite global uncertainty, demand for investment loans never collapsed, particularly in sectors such as mining, logistics, healthcare, and infrastructure.
The next upside lies in the revival and diversification of foreign direct investment, supported by Indonesia’s scale, demographics, and long-term fundamentals.
A major structural development is the ongoing reform of state-owned enterprises under Danantara, aiming to streamline more than 1,000 state-linked entities into roughly 200 stronger groups.
Rather than short-term bailouts, the focus is on consolidation, governance, balance-sheet repair, and operational efficiency.
Early restructurings have already been rewarded by markets, reinforcing credibility and improving capital allocation across the economy.
For exporters and investors, the message is clear: Indonesia is not a short-term tactical play.
It is a large, domestically driven, reforming economy entering a new growth phase, one where resilience, scale, and structural change create concrete opportunities.
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PS: If you want a copy of the full report, send us an email to bonjour@cintasia.com with REPORT in the title.
And we’ll send it to you.
Picture by Danantara: Borobudur Temple
Source: Danantara