HSBC Chief Asia Economist Frederic Neumann said that Indonesia’s economy remains resilient despite ongoing global economic turbulence.

“Indonesia’s economy grew by 5.4% in the first half of this year, and we maintain the same growth projection of 5.4% for the full year. For next year, we forecast growth of 5.2%, representing a slight moderation but still a strong performance amid the current global turbulence,” he said at the HSBC Indonesia Summit 2026 Media Briefing in Jakarta on Tuesday.

The global economy continues to face several challenges affecting countries worldwide, including an ongoing energy crisis that has pushed diesel prices to historic highs, El Niño-related pressures on food prices, and rising interest rates across various economies.

Despite these challenges, Neumann noted that the Indonesian government has managed energy price fluctuations relatively effectively through subsidies and price management measures, helping shield consumers from the more severe impacts experienced in other countries.

“So far, the Indonesian government has been able to maintain these price controls, providing an important anchor for economic stability,” he said.

Turning to food prices, Neumann noted that food inflation in Indonesia remains relatively low. While previous El Niño episodes had triggered significant increases in domestic food prices, improvements in the country’s food distribution system have helped contain price pressures this time around.

He also highlighted Indonesia’s position as a net food exporter, which reduces its dependence on imported food supplies. Although the country continues to import certain commodities, its overall status as a net food exporter provides an additional buffer against the potential impact of El Niño on domestic food prices.

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