Business · Economy · 8 hrs ago
Global shifts and rising oil prices add to Indonesia’s economic uncertainty
Economist Raden Pardede says global economic and political shifts are adding uncertainty for Indonesia.
He points to China’s rise, advances in artificial intelligence and demographic changes as forces reshaping economies and societies.
In parts of Europe, he says, younger people are protesting concerns about public debt and the costs they may inherit.
Higher oil prices also affect Indonesia, with crude briefly topping US$100 a barrel, compared with the government’s 2026 budget assumption of US$70.
Higher oil costs could increase energy spending and subsidies in Indonesia’s state budget.
Rising interest rates abroad have also pushed the yield on Indonesia’s 10-year government bonds to 7.8%, above the budget assumption of 6.9%.
Pardede says changes in Indonesia’s government and policy priorities add domestic uncertainty, and the uncertainty could last longer.
Indonesia faces economic uncertainty from shifts in global power, artificial intelligence, demographic change, rising oil prices and higher government bond yields.
Senior economist Raden Pardede said the United States is no longer the only global economic power, with China’s rise changing the global economic landscape.
Global oil prices reached more than US$100 per barrel, above the 2026 budget assumption of US$70.
Indonesia’s 10-year government bond yield rose to 7.8%, compared with a 2026 budget assumption of 6.9%.
Pardede said a combination of global and domestic pressures could keep uncertainty elevated for longer.
- Who
- Indonesia and its economy are facing uncertainty. Economist Raden Pardede described the pressures.
- What
- Global and domestic developments are adding to economic uncertainty, including oil prices and government bond yields.
- When
- The article was published on November 10, 2026; Pardede’s comments were cited as made on November 9.
- Where
- Indonesia, amid global economic and financial developments.
- Why
- Shifts in global economic power, AI, demographic change, higher oil prices and interest rates, and domestic changes in government and policy priorities.
This story does not have two clearly opposing sides.
Raden Pardede’s comments were cited as having been made on CNBC Indonesia’s Cuap Cuap Cuan program.
CNBC Indonesia published the article about Indonesia’s economic uncertainty.
- Global oil price
- More than US$100 per barrel
- 2026 budget oil price assumption
- US$70 per barrel
- Indonesia 10-year government bond yield
- 7.8%
- 2026 budget yield assumption
- 6.9%
- Economist
- Raden Pardede, founder of CReco Research Institute
What people are saying
So this is what makes us think that it looks like higher for longer. It looks like this uncertainty will last quite a while.
Now Gen Z, or young people, feel that the burden is becoming very heavy because they have to support their parents. There are more and more older people in European countries now. So besides AI, and then geopolitical changes, young people feel that things are getting harder for us.