As the world approaches 2026, rapid advances in digital, biological, and clean-energy technologies are reshaping economic structures, industries, and everyday life.

Indonesia’s strategic culture has long been anchored in the principle of bebas aktif—a free and active foreign policy rooted in nonalignment, strategic autonomy, and pragmatic engagement—which has guided the country from the Cold War to today’s era of intensified great-power competition.

Indonesia’s 2026 market outlook is shaped by a decisive shift toward pro-growth fiscal and accommodative monetary policies, supported by easing global financial conditions and expectations of U.S. rate cuts.

Thailand’s stock market is entering 2026 with a generally cautious outlook amid slower economic growth, global trade uncertainties, and ongoing domestic challenges such as high household debt and climate-related disruptions.

ASEAN is entering a critical period as shifts in global production networks, digitalisation, and the green energy transition reshape labour markets and create new opportunities in sectors such as artificial intelligence, semiconductors, renewable energy, and advanced manufacturing.

On Oct 26, 2025, the U.S. and Thailand agreed on a Framework for an Agreement on Reciprocal Trade. Within this framework, in exchange for a reciprocal tariff reduction and further exemptions on some goods, Thailand will eliminate tariffs on almost all U.S. goods, increase purchases of animal feed, energy, and aircraft, and broaden market access for certified meat, poultry, vehicles, medical devices, and pharmaceuticals.

Global growth is holding up better than expected, supported by front-loaded trade, strong AI-related investment, and generally easier financial conditions, yet momentum is set to soften as higher tariffs, persistent policy uncertainty, and easing labour markets gradually weigh on demand.

ASEAN stands at a pivotal moment as global interest in central bank digital currencies (CBDCs) accelerates, with most central banks worldwide now conducting experiments or pilots.

Indonesia’s move to recognise the United States as an adequate jurisdiction for personal data protection—made through a new trade deal and implemented before its own Personal Data Protection Authority and adequacy criteria are in place—raises concerns over legal legitimacy, regulatory preparedness, and data security.