Indonesia: Growth momentum seen extending into 2026 – Standard Chartered

💡 DMK Insight

Indonesia’s GDP growth hitting 5.4% in Q4-2025 is a key indicator for traders: This uptick, fueled by robust domestic demand and household consumption, signals a strengthening economy. For forex traders, this could mean a bullish outlook for the Indonesian Rupiah (IDR) against major currencies, especially if the trend continues into 2026. Keep an eye on how this growth impacts interest rates; if the central bank responds with tighter monetary policy, it could further bolster the IDR. However, there’s a flip side. If global economic conditions worsen or commodity prices drop, Indonesia’s reliance on exports could dampen this growth. Traders should monitor key levels in the IDR, particularly against the USD, as any significant moves could indicate shifts in market sentiment. Watch for upcoming economic reports and central bank meetings that may provide further clarity on the trajectory of Indonesia’s economy.