01 Apr 2024 | News & Feature

TFP W14 2024 , An update on Corporate Indonesia: Whipsawed by prices

  • Declining commodity prices and consumer downtrading pose a challenge to Indonesia’s corporate revenue growth in Q4 2023. Revenue growth may recover in 2024 as these challenges unwind, but the short-lived commodity rally may put a short ceiling on corporate revenue growth.
  • The strong correlation between commodity prices and the secondary-tertiary sector’s revenue highlights the structural challenge in maintaining domestic consumption growth momentum.
  • Still-high and government-driven CAPEX spending amidst the limited outlook for corporate revenue growth may further drive up the demand for loans.