HSBC Outlook: Indonesia’s Inflation to Remain Stable Amid Global Challenges

She emphasized that sustaining this trend will largely depend on global energy price stability. If oil prices average around USD80 per barrel and begin to ease, inflation is expected to remain under control. Nevertheless, global energy challenges could create multi-channel shocks, requiring careful monitoring in the coming quarters.

Furthermore, Pranjul Bhandari, Chief Indonesia and India Economist HSBC Global Research noted that energy challenges extend beyond pricing to supply availability, which influences key economic indicators such as growth, inflation, and fiscal balance. Government measures including energy subsidies and a strong commitment to inflation targets set by Bank Indonesia play a crucial role in maintaining stability. Additionally, improvements in tax systems like Coretax and the availability of fiscal reserves help ensure that Indonesia can maintain its fiscal discipline in the near term.

On the equity side, Herald van der Linde, Head of Equity Strategy Asia Pacific HSBC Global Research added that global uncertainty does not necessarily weaken equity prospects, as markets reflect corporate performance. HSBCremains positive on global and emerging market equities, with confidence that Indonesia will stay resilient despite short-term pressures.