DBS Views Indonesia as Benefiting from Global Supply Chain Shifts

PT Bank DBS Indonesia assesses that Indonesia is in a strategic position as a primary destination for the global supply chain shift amid increasing geopolitical uncertainties. This is because, following the Trump tariffs, the conflict between the US, Israel, and Iran is increasingly shifting global trade and investment flows. In this context, Indonesia is seen as one of the countries that stands to benefit. In his statement in Jakarta on Monday, Director of Institutional Banking Group at Bank DBS Indonesia, Anthonius Sehonamin, said that Indonesia’s relatively stable domestic conditions and strong economic growth prospects make it increasingly attractive to investors. According to him, increasing regional connectivity is also strengthening Indonesia’s integration into regional trade and investment flows, including through economic partnerships with China, which are becoming an important pillar in the regional supply chain and investment. “For Indonesian business players, this development is not just a bilateral trend, but an opportunity to expand markets and strengthen cross-border businesses,” he stated. First, corporations need to anticipate geopolitical risks through diversification of markets and regional supply chains. Escalation of conflicts, including in the Middle East, has the potential to disrupt international trade routes and increase logistics costs. Nevertheless, the Asian region is assessed to still have relatively strong growth prospects. DBS Group Research projects that the Chinese economy will continue to grow at around 4.5 per cent, supported by accommodative monetary policies. This situation opens opportunities for Indonesian corporations to balance global risks by strengthening involvement in regional supply chains. However, cross-border expansion also brings challenges such as regulatory changes, demand fluctuations, and exchange rate volatility.