Indonesia’s economy is expected to maintain steady momentum through 2025–2026, supported by a stronger-than-anticipated rebound in the second quarter, firmer manufacturing activity, and resilient household spending boosted by seasonal holidays.

Indonesia’s livestock industry is emerging as a strategic growth engine in the national development agenda, transitioning from a supplementary role to a key driver of food security, rural development, and export competitiveness.

Global financial markets posted strong gains in Q3 2025, powered by surging AI-driven technology demand, solid corporate earnings, and the U.S. Federal Reserve’s anticipated rate cut, which weakened the dollar and supported emerging markets, including Indonesia. Equity markets rallied globally—with the U.S., Japan, and North Asia.

East Asia and the Pacific’s economic momentum is softening as global growth slows, trade restrictions rise, and domestic uncertainties persist, though the region still outperforms global averages. Industrial output and retail activity remain resilient, yet weak business confidence and fading export orders signal headwinds ahead.

Southeast Asia is charging ahead in 2025, with the region’s economy powering up on the back of a pre-tariff surge in trade and production. According to McKinsey’s latest Southeast Asia Quarterly Economic Review, Vietnam led the pack with nearly 8 % year-on-year growth—the country’s fastest pace in more than a decade—while other major markets saw solid gains driven by strong exports, industrial output, and resilient consumer spending.

Thailand’s automotive industry is expected to experience flat production growth of around -0.5% to 0.5% annually between 2025 and 2027, pressured by weak domestic demand, declining exports, and global trade risks.

Indonesia stands at a crossroads in redefining its foreign policy to match its growing global weight and ambitions. A genuine overhaul must begin with a clear articulation of national interests, supported by strategic use of three key pillars: foreign policy instruments, channels, and diplomatic infrastructure.

Global economies are entering a period of profound transformation marked by persistent disruptions, rising uncertainty, and deep structural shifts. Seventy-two percent of chief economists expect global conditions to weaken over the next year as trade tensions, supply chain realignments, and rapid AI development reshape markets.

Indonesia is expected to enter the final quarter of 2025 with cautious optimism, as the Jakarta Composite Index (JCI) faces a volatile environment shaped by both global and domestic factors.