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] 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
• [New] 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
• [New] 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
• [New] IOD (Indian Ocean Dipole): A positive IOD phase developing in tandem with El Nino (forecast for June/July 2026) will amplify drought in Indonesia and Australia. Through my Asian lens
• [New] Alongside aluminium, tin prices are expected to record a moderate decline over the medium term, following current elevated levels supported by persistent supply constraints in key producing countries, particularly Indonesia and Myanmar. PricePedia
• [New] A prolonged war will see credit losses rise in Vietnam, Indonesia, and India. Charlton Media Group
• [New] Indonesia could outlast the impacts of Middle East war-fuelled oil price hikes for up to 10 months without cutting fuel subsidies. Daily Sabah
• [New] Emerging markets in Asia-Pacific, particularly India, Vietnam, Indonesia, and Bangladesh, offer substantial growth opportunities driven by rapid industrialization, infrastructure development, and foreign investment attraction. Persistence Market Research
• [New] Indonesia, the world's largest palm oil producer, is expected to experience a longer and more severe dry season in 2026 compared to last year. MarketsFarm
• [New] Biofuel production is projected to grow steadily, led by Brazil's ethanol expansion under RenovaBio and increasing biomass-based diesel output in the U.S., Indonesia, and Brazil. Ag Bull Trading
• [New] Coral Triangle Emergency Protocol: Commission a dedicated mesophotic monitoring buoy network across Indonesia's Coral Triangle; integrate Nexus Radar signals into national disaster risk dashboards within 12 months. Horizon Scan AI
• [New] Even as Indonesia grapples with the challenges of Jakarta, Nusantara is expected to be home to only 2 million people by 2045. NPR
• [New] Governor of Bank Indonesia, Perry Warjiyo, expects Indonesia's economic growth to reach between 4.9% and 5.7% in 2026. idnfinancials.com
• [New] Drier and hotter conditions linked to El Nino in parts of Australia, Indonesia and the wider Coral Triangle raise the risk of bushfires, haze and water shortages. The Traveler
• [New] If policymakers continue to prioritize stability without addressing the root causes of capital inefficiency, Indonesia will not escape from the 5% growth trap. The Jakarta Post
• [New] For Indonesia, a net oil importer, a prolonged disruption could drive up domestic fuel costs and strain the state budget, making de-escalation a strategic necessity. Antara
• [New] The current disruption has triggered announcements of new and strengthened emergency storage capacity, notably in Indonesia and Viet Nam, as well as exceptional demand-restraint measures, including energy conservation campaigns, work-from-home policies and fuel rationing. IEA
• [New] Indonesia's 2026 fuel crisis is defined by strict quotas and B40 maintenance risks. Geotab
• [New] Last month, Indonesia began implementing a new government regulation banning children younger than 16 from access to digital platforms that could expose them to pornography, cyberbullying, online scams and addiction. WRAL

Last updated: 11 May 2026