United Overseas Bank Singapore: Indonesia's economy may face tough times in 2026

Glonghui, February 12th｜Analysts from United Overseas Bank Singapore, Kay Hian and Suryaputra Wijaksana, pointed out in a report that Indonesia's economy may face a difficult situation in 2026. Several major government initiatives, including the free meal program, could put pressure on the country's finances. Export growth is expected to slow down, especially for coal and palm oil, due to weakening commodity prices and demand. The analysts stated that recent developments may also dampen foreign investment interest, including MSCI's warning on the investability of Indonesian securities and Moody's decision to downgrade Indonesia's credit rating outlook to negative.