- Fed Chair Powell signalled a dovish shift in policy outlook, citing concerns over weakening US economic growth as the key driver.
- Falling commodity prices amid softer global demand seem to have weakened Indonesian commodity producers’ balance sheets, pushing them to increase liabilities to sustain CAPEX expansion.
- Meanwhile, still-elevated real rates, uncertain domestic conditions, and generally healthy balance sheets may continue to dampen loan appetite across other segments of Indonesia’s corporate sector.
