- Recent global macroeconomic developments relieve the pressure on Indonesia’s financial market, foreign inflows to the domestic stock market appear to be limited given the corporate sector’s less-stellar revenue growth in Q3 2023.
- Despite the weakening revenue growth, the domestic corporate sector benefits from improved efficiency while maintaining a high appetite for CAPEX expansion.
- The persistent CAPEX trend amid weakening income growth may increase the private sector’s demand for funding in the coming periods, unless the now-higher real interest rates start to induce forced savings in the private sector.
