Turning pressure into progress

Indonesia CEOs hold a generally positive view of the global economy, though their optimism is more subdued compared to their Asia Pacific peers

Longer‑term sentiment remains cautiously optimistic. At the same time, CEOs across Asia Pacific express slightly lower certainty in their short‑ and long‑term revenue expectations.

Across all risks, Indonesia CEOs perceive greater pressure, with macroeconomic volatility emerging as the primary concern.

Q. What do you believe economic growth (i.e. gross domestic product) will be over the next 12 months in the global economy?

Indonesia CEO outlook on global GDP over the next 12 months

The IMF projects Indonesia’s economy to grow by 5.1% in 2026—slightly higher than its previous estimate—supported by steady momentum after Indonesia recorded 5.04% year‑on‑year growth in Q3 2025. ​

Expectations among Indonesia CEOs regarding their own companies’ revenue prospects has dipped over the past year, although they remain somewhat more upbeat when looking further ahead

Q. How confident are you about your company’s prospects for revenue growth over the next 12 months and in the next 3 years? (Only showing ‘very and extremely confident’)

Indonesia and Asia Pacific CEO expectations in their company’s prospects for revenue growth over the next 12 months and the next three years

Across most regions, the reported 12‑month revenue outlook has moved lower, with three‑year views generally showing greater stability

Q. How confident are you about your company’s prospects for revenue growth over the next 12 months and 3 years? (Only showing ‘very and extremely confident’)

CEO expectations for their company’s prospects for revenue growth, 12‑month and 3‑year outlook

Globally, CEO expectations in 12‑month revenue growth appears to be declining across most sectors

Q. How confident are you about your company’s prospects for revenue growth over the next 12 months?

^{Note: Global data, not Asia Pacific​​}

Indonesia CEOs continue to perceive greater pressure from macroeconomic volatility, followed by concerns around access to key skills and the potential impact of tariffs

Q. How exposed do you believe your company will be to the following key threats in the next 12 months? (Only showing ‘Highly exposed’ and ‘Extremely exposed’)

Exposure to threats in the next 12 months by year – Indonesia

Tariff-related concerns appear especially pronounced in the Asia Pacific region

Q. How exposed do you believe your company will be to the following key threats in the next 12 months?  (Only showing ‘Highly exposed’ and ‘Extremely exposed’)

Threat of tariffs by region​
Showing only ‘Highly exposed’ and ‘Extremely exposed’ responses

^{Note: “Technological disruption, availability of key skills” were not asked in 2024. “Tariff” was not asked in 2024 and 2025.}

More than half of respondents anticipate that tariffs will have little to no effect on their companies’ net profit margins over the next 12 months

Q. Over the next 12 months, what will be the relative impact of tariffs on your company’s net profit margin?

Impact of tariffs on net profit margin for Indonesian CEOs, 12-month outlook​

This measured outlook may reflect a gradual shift in trade strategies. Many organisations are beginning to re-route supply chains and build greater intra‑regional resilience, moving toward a “by Asia, for Asia” approach to help reduce tariff exposure. The China–ASEAN corridor is one example of this trend.

Nearly one in five CEOs (22%) say AI has contributed to additional revenue over the past 12 months. Just over a quarter (28%) report some cost reductions, and a smaller group (10%) indicate that they have seen both. However, more than half report little to no financial benefit at this stage.

Overall, many companies have yet to see clear revenue gains or cost improvements from AI, although a minority appear to be experiencing both. A similar pattern is reflected across Asia Pacific

Q. In the last 12 months, what impact did AI have on the following at your company?

AI foundations in companies in Indonesia​

Q. How would you rate your company’s prospects for improved sales performance over the next 12 months and the next 3 years?

Percent of companies in Indonesia agreeing to AI foundation practices​

Several organisations perform relatively well on intent‑led enablers such as culture (63%), technology environment (57%), and strategy or AI roadmap (44%).

However, fewer report having the more practical foundations needed to support longer‑term value creation through AI. These include the ability to attract technical talent (37%), formal responsible AI and risk processes (36%), adequate investment (32%), and access to quality data (24%).

Employment outlook varies across seniority levels

Q. For the following groups, how do you expect your company’s AI adoption to change your employment levels in the next three years?​

Indonesia expected changes in employment levels due to AI, by seniority​

The findings suggest a mixed outlook for junior roles, indicating that organisations may still be determining how early‑career work will evolve. This may prompt companies to revisit how they onboard new talent and support early‑career development.

Mid‑level and senior roles appear more stable. This aligns with the continued need for human oversight in AI‑enabled processes, where mid‑level employees often play a role in reviewing AI outputs, applying judgement and managing risk.

Across Asia Pacific, CEOs remain focused on business transformation, innovation capability, and business viability. Many continue to prioritise near‑term considerations and show a cautious approach to capital allocation.

Interest in exploring opportunities outside traditional boundaries is gradually increasing. Three out of four CEOs in Indonesia (75%) expect to grow beyond their existing industry areas over the next three years.

Indonesia CEOs are particularly focused on whether their business transformation efforts are keeping pace with technological advancements

Q. What is the question that concerns you most these days?

^{Biggest questions concerning CEOs                        Percent of Indonesia CEOs selecting question(s)​}

^{Note: Top-three biggest questions are similar to CEO Asia Pacific's top-three concerns}

Around eight in ten CEOs devote most of their schedule to near‑term activities, while only 16% concentrate primarily on longer‑term planning

Q. What proportion of your typical schedule is dedicated to activities associated with the following time horizons? 

Indonesia CEOs appear more likely than their peers across Asia Pacific to consider major M&A over the next three years

Q. How many major acquisitions, worth more than 10% of your company’s assets*, is your company planning to make in the next three years?​

Number of planned major acquisitions (showing only ‘one or more’)​

Number of planned major acquisitions, by region​

Meanwhile, 64% of Indonesia CEOs don’t anticipate making international investments. Among those that do, they tend to focus on nearby markets. The top territories they are likely to consider include:

Q. Which three countries, excluding the one in which you are based, will receive the greatest proportion of your company’s overall investments in the next 12 months?

Over the past five years, more Indonesia CEOs report that their companies have moved into new sectors or industries not previously explored

Q. In the last five years, has your company begun competing in new sectors or industries in which it hadn’t previously competed?​

Percentage of CEOs in Indonesia and Asia Pacific who have competed in new sectors or industries in which they hadn’t previously competed

For those that moved into new areas, the reported returns appear to be notable.

Their companies earn an average of 22% of revenue from these newer sectors, with 63% indicating that 1–20% of revenue over the past five years came from these areas—suggesting that there may be meaningful value associated with such moves.

Intent also appears to be shifting. Around 75% plan to expand beyond their traditional industry boundaries over the next three years.

Q. In which of the following industries (if any), outside of your own, will you seek to grow your business (including partnering with others to do so) over the next three years?​

Sectors Indonesia CEOs may look to enter in the next three years