Indonesia's Business Council Reports Easing Geopolitical Tensions and Positive Outlook

Indonesia's Business and Industry Chamber (Kadin) chair Anindya Bakrie said that global geopolitical tensions are easing, creating a more positive sentiment toward Indonesia. He noted that businesses in Q2‑2026 faced challenges such as the Middle‑East conflict, pressure on the rupiah, regulatory certainty, consumer purchasing power, and rising energy costs, but the easing of tensions improves the investment climate.

Bakrie explained that Indonesia is shifting from a natural‑resource‑based economy to one driven by human resources. The assessment is based on Kadin’s Business Pulse survey for Q2‑2026, which tracks indicators from micro to large enterprises. The survey shows inflation remaining stable, debt‑to‑GDP among the best in the G20, and a projected growth rate of around 5 % for 2026. Bakrie urged firms to adapt to the “new equilibrium,” improve efficiency, adopt technology, and expand export markets.