The Indonesia Economic Prospects (IEP) is a bi-annual World Bank report that assesses recent macroeconomic developments, the outlook, and risks, as well as specific development challenges for the Indonesian economy. In doing so, the IEP aims to inform the public policy debate and is geared towards a wide audience, including the general public, the government, the private sector, civil society organizations, and other domestic and international stakeholders.

Indonesia, boasting the largest population in Southeast Asia and ranking as the fourth most populous country globally, has become a magnet for companies eyeing the potential within its expanding digital landscape.

In 2009, a mere 19% of Indonesians were internet users. However, recognising the untapped possibilities early on, venture capital firm East Ventures made strategic investments in the country. Consequently, Indonesia has experienced substantial digital advancements, particularly gaining momentum during the COVID-19 pandemic.

Thailand’s digital economy has been rapidly evolving in recent years, driven by factors such as increasing internet penetration, smartphone adoption, and government initiatives. However, this growth also brings new challenges, including the proliferation of online scams, misinformation, and potential threats to cybersecurity.

Experimenting with Generative AI: Does ChatGPT Really Increase Everyone’s Productivity?

Much of Asia is nervously watching the start of Donald Trump’s second term as president of the United States. In Southeast Asia, the concerns are primarily economic:

How far will Trump’s campaign threats of trade sanctions and tariffs reach? What will Trump trade wars mean for ASEAN’s growing, but fragile economies?

Representing over 97% of all enterprises, Micro, Small, and Medium-sized Enterprises (MSMEs) are crucial to the ASEAN economy. However, cross-border trade in the region remains modest, accounting for only 18% of the total export value. .

The ASEAN Integration Report, titled Inclusive Trade: Perspectives on Regulatory Challenges for MSMEs in ASEAN, provides an overview of the challenges faced by MSMEs in the region, with a particular focus on the trade regulatory complexities that disproportionately burden MSMEs.

Indonesia's economy showed consistent growth in Q1 2025, with GDP projected to grow between 5.00% and 5.05%. However, this steady growth rate, maintained since 2014 (excluding the COVID-19 period), indicates a risk of secular stagnation, highlighting the need for structural reforms to enhance productivity and reduce reliance on seasonal factors.

Indonesia's ambitious decarbonization targets are projected to impact employment in the power and automotive sectors significantly. A study analyzing three decarbonization scenarios for 2020–2050 indicates that aligning the electricity sector with the Paris Agreement could generate 5.86 million direct job-years, surpassing the business-as-usual scenario by 2.67 million.

Thailand is offering a preview of how Central Bank Digital Currencies (CBDCs) could reshape financial systems. An intriguing window into the future of money and how central bank digital currencies (CBDCs) might be used has opened up in Thailand.