Standard Chartered’s Aldian Taloputra notes Indonesia’s Q2 GDP grew 5.3% year-on-year, slowing from 5.6% but beating consensus. However, a weak recovery in formal-sector employment and cautious private-sector investment suggest growth will remain modest, with government programmes and household consumption offsetting subdued external demand. Growth beats but headwinds persist"Indonesia’s GDP growth slowed to 5.3% y/y in Q2 from 5.6% in Q1 but beat market expectations of 5.1%. "We raise our 2026 GDP growth forecast to 5.3% from 5.2% given stronger-than-expected H1 growth. We maintain our view that growth will remain modest, averaging 5.2% in H2, amid a weak recovery in formal-sector employment and still-cautious private-sector investment."