Bank Indonesia has raised interest rates by a total of 100 basis points this year and has also intervened directly to steady the rupiah. The currency is expected to strengthen to 17,850 per dollar this quarter from 17,895 at the prior close. Indonesia’s benchmark 10-year government bond yield of about 7.25%—among the highest in emerging markets—has helped draw foreign inflows for a second straight month. Markets are split ahead of Wednesday’s rate decision over whether the central bank will hold or deliver another 25-basis-point hike, while a potential MSCI reclassification still threatens about US$15 billion in passive outflows.

BMI forecasts Asean passenger EV sales will rise from 419,547 units in 2025 to 916,997 units by 2035, lifting EV penetration to 22.7%. The report also highlights the region’s role in critical inputs, noting Indonesia and the Philippines accounted for more than 68% of global nickel mine production in 2024, while Indonesia is the world’s second-largest refined nickel producer. It adds that Vietnam holds about 20% of global rare earth reserves. The outlook is framed as a medium- to long-term industry projection, with no immediate policy or supply-change catalyst cited.