As the third largest country in Asia by population and with gross domestic product (GDP) growth forecast to continue at a steady rate of 5%, Indonesia has a lot going in its favour. While there are risks forecasted in the coming year, the international community is looking at how it can capitalise on the country’s upward trajectory, and in doing so give the country an economic boost.
However, these positives come with concerns over Indonesia's macroeconomic environment. Fitch Ratings’ 2019 Outlook: Asia-Pacific Emerging Markets Banks report has revised Indonesia’s sector outlook from 'stable' to 'negative' as a result of the rise in interest rates during 2018, with the expectation of a squeeze on bank profits.
