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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.
Allianz Utama Strengthens Portfolio Diversification Amid Sluggish Property Insurance Premiums
The property insurance industry continues to face pressure by the middle of 2026. This is reflected in data from the General Insurance Association of Indonesia (AAUI), which recorded a 13.6% year-on-year (YoY) contraction in property insurance premiums in the first half of 2026.
According to Datien Widyastuti, Head of Commercial Underwriting at PT Asuransi Allianz Utama Indonesia (Allianz Utama Indonesia), opportunities for growth in the property insurance segment remain open. Although its performance through the end of the year will be influenced by a number of factors, she said that demand for asset protection remains strong.
This creates continued growth opportunities for the property insurance segment, particularly in the commercial and industrial sectors.
“The performance of the property insurance segment through the end of the year is generally influenced by economic conditions and interest rate dynamics,” stated by her.
In addition, she noted that there are opportunities for improvement in this line of business. Growth in property insurance premiums could be supported by ongoing business and investment activities, continued demand for asset protection, and portfolio diversification.
Therefore, Allianz Utama Indonesia has adopted a portfolio diversification strategy to maintain its performance through the fourth quarter of 2026. The diversification strategy involves expanding its coverage across the commercial and industrial property segments.
“This diversification can also help offset dynamics in certain segments,” she said.
At the same time, the company continues to apply risk selection and prudent underwriting principles. It will also continue to monitor various factors that could affect performance, including potential claims arising from natural disasters and extreme weather, rising asset replacement costs, and pricing competition in the market.
Through this strategy, Allianz Utama Indonesia remains optimistic about maintaining a healthy and sustainable growth in the property insurance sector.