- 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.
