Standard Chartered has upgraded Indonesia’s 2026 GDP growth forecast to 5.3 percent following better-than-expected first-half economic performance. The revision comes after Indonesia posted second-quarter GDP growth of 5.3 percent year-on-year, which exceeded market consensus despite representing a slowdown from the previous quarter’s 5.6 percent expansion.
Aldian Taloputra from Standard Chartered highlighted the resilient domestic momentum that supported the upward revision. The data signals Indonesia’s economy is maintaining steady growth despite global headwinds and regional uncertainty. For traders and investors with exposure to Indonesian assets, the upgraded forecast suggests continued economic stability in Southeast Asia’s largest economy.
The rupiah and Indonesian equities may see sustained support from improved growth expectations, though the sequential slowdown indicates momentum is moderating. Market participants should monitor upcoming consumption and investment data to gauge whether the growth trajectory can be maintained through year-end.
FXnCO Insight
Position for sustained Indonesian asset stability while watching for further sequential deceleration that could challenge the elevated 2026 forecast.
Source: FXStreet