Shinhan Financial Group projects Indonesia's economic growth rate next year to reach 5.0-5.2%. This is attributed to improved private consumption, expanded government investment, and recovery in commodity demand driven by strengthened fiscal policies from major countries including China. Additionally, amid US-China trade tensions, Indonesia is emerging as an alternative supply chain for China, allowing expectations for manufacturing base expansion and increased foreign investment. Inflation is expected to stabilize within government control, and Indonesia's central bank may lower its benchmark interest rate to support economic growth. However, global consumption contraction, escalating US-China trade friction, and geopolitical tensions could serve as risk factors.
