Indonesia’s economic expansion is encountering significant headwinds as key industrial sectors face downturns and shifting fiscal priorities create new uncertainties. While resource downstreaming—particularly domestic nickel processing—has driven recent national development, traditional manufacturing and textile industries are confronting mass layoffs and stiff competition from foreign imports. Coupled with a shrinking middle class and rising national spending obligations, these structural pressures threaten to slow the country’s long-term economic momentum.
- Resource downstreaming policies aimed at processing nickel locally have boosted export revenues, but environmental and foreign regulatory concerns remain challenges.
- The domestic manufacturing and textile sectors have experienced widespread factory closures and job cuts due to an influx of low-cost imported goods.
- National economic data indicates a contraction of Indonesia’s middle class, leading to reduced household purchasing power and lower consumer spending.
- Government fiscal stability is under increased scrutiny following commitments to large-scale public spending programs, including universal school meal initiatives.
DW News is a global news TV program broadcast by German public state-owned international broadcaster Deutsche Welle (DW).
AllSides Media Bias Rating: Center
https://www.allsides.com/news-source/deutsche-welle-media-bias
Official website: https://www.dw.com
Original video here.
This summary has been generated by AI.



What challenges do you think Indonesia’s economy faces going forward? Let us know below…
nothing challenge it so far, only oligarchy are panic same you get in video part of those group…look fact and fundamentals rise over past 7 months, no more imf and the fact Indinesia the most established now in matter of many aspects, remember bio diesel B50 is significantly balancing of oil pice global, and more fact nation asset is significantly increase…..nothing to worry in here 😊
Indonesia deserves what's happening to them. They loved Prabowo, for whatever reason.
Prabowo starts to force ethnical Chinese businesses to buy government bonds. If everything fails, he will scapegoat ethnical Chinese for screwing up the Indonesia economy. Like Suharto or h.. ither, rob, loot and rape ethnical Chinese.
The elephant in the room is that Indonesian government still heavily subsidises fuel. It's still much cheaper in Indo than in many European countries. If they want fiscal repair they need to strip that band aid off, but of course they know how highly unpopular that will be given their lack of public transport and people's high dependence of fuel
Nonton dulu
He is the dumbest president ever
How about the promise of 19 million jobs made during the Prabowo-Gibran election campaign? Until now, it remains unfulfilled. Nothing more than empty promises..
I think as Indonesian citizens, we are currently heading towards the brink of ruin.
Having tons of nickel and palm oil doesn't mean much, if the government wastes money on cheap politics and messes with the bank.
If you just rely on selling raw stuff instead of building real industries and honest leadership, you’ll stay stuck broke.
It’s not a resource problem, it’s a management problem
😢 damn we realize there is something wrong with this nations,but what can we do ,the gouverment too deaf 😢😢😢 and never want to listen the criticism of their peoples
Bowo biang masalah utamanya 😂
“As an Indonesian, I believe we should take these warnings seriously, not defensively. Indonesia has enormous potential, but potential means little without productivity, education, technological innovation, strong institutions, and industrial competitiveness. At the same time, Indonesia has a strong economic foundation in its large domestic market, which provides a significant source of demand and makes the economy less dependent on external markets. The next decade will determine whether Indonesia can turn its natural resources, large market, and young population into sustainable prosperity.”
you guys know who made it like this. i dont need to put names, your mind's right. yes. that person
DW complaining about social programs in other countries while Germany's government destroys Germany's social programs is quite funny. Nevermind the great german economic growth that allows it to lecture others on economic policies.
In Indonesia, Corruption has become the norm, be it small or big, everyone corrupts whenever they got the chance, even as simple as illegal parking fees.
政府が西側では無く共産主義国を選んだ結果でしょう。汚職、賄賂無しでは生きられない国
Haha, kad Rusija nije propala, sad su počeli pričati o Indoneziji i propadanju😂
Napred, Indonezija i ne daj se!!
BRICS🇷🇸❤️
U cheat to riches.u must be dreaming.u are in stone age.
Hold power in ur own hand so that u can corrupt
Why are you meddling in Indonesia's affairs? Just mind your own country's business.
Free free borneo
You know we're so cooked when westerners start talking about our collapse. I blame the village people who voted that man just because of his free lunch program
Who gives a FUXK!
Corruption
Prabowo is the bad president ever
Media barat lagi memantau indonesia guyss. Artinya apa, artinya kita di jalan yang bener. Inget china waktu itu di hajar habis²an sama media barat, salah satunya The Economist, tapi nyatanya china ekonominya maju pesat😂
Kiwoom🎉❤
It has always been under threat since day one because the country has failed to make transformative change that would set it on a higher, sustainable path. The whole edifice remains a house of cards that can come down at any moment. That's the real story: the continued, repeated failure and unwillingness to truly, meaningfully reform
Thank to 58% who have privilege to open the Pandora box.
Big Corruption
Their current president prabowo is corrupt and have lots of skeletons in the closet
I hope Prabowo step down sooner, his leadership was a mess, his policy ruin Indonesia economy
The corruption is out of control here. If they don't settle the corruption problem the economy will never improve. Nepotism and academic fraud also plays into this .
It is safe about the price of oil that does not affect it because Indonesia has a B3 mine in the era of 1980 Giant oil mine ranked 2nd below Saudi Arabia's rating Now if it is drilled again, the price of oil is stable again
Isn't their Capital Sinking, Literally ?
Hahaha, not mentioning any of the major developments in Indonesia… Amatuer reporting…
only if that bob pig gave up to campaign, so the 5th time he suck everything blatantly, in broad daylight
Well. Because Indonesia shoot itself in the foot!!!!
kacau bagi mu, bagi ku sih pemerintah sekarang bagus, banyak koruptor ditangkap dan penyelundupan ditangkap .
Interesting, but due to the annoying background music, I stopped watching after the first few minutes. Does quality journalism need such presentation styles?
Corruption is the problem with every asian country especially south and south east asian countries
Buy bitcoin.