- Apart from inflation and fiscal risks, higher global bond yields may also reflect expectations for higher growth, driven by private sector investment especially, in AI-linked sectors.
- AI-driven private sector growth may ease the burden for the government to deliver growth, although the narrow-based growth may continue to fuel opposition against fiscal discipline.
- Despite Indonesia's success in delivering a "low yield, high growth" environment, certain limitations still need to be managed to mitigate the risks of credit concentration in favoured sectors.
