Insight

Indonesia Exposed to China's Economic Slowdown

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Algo Research Team


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Key Summary:


  • Heavy reliance on China puts Indonesia at risk
  • Falling Chinese demand risks key sectors
  • China grapples with property and consumption slump

As China's economic demand slows and the long awaited fiscal "bazooka" stimulus is still not materialized, Indonesia braces for a potential risk.


Context: Deeply intertwined through extensive trade and investment, Indonesia's economy depends on China who is facing a declining consumer spending, a stagnant property market and rising deflationary pressures.


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