Demand conditions remain a major concern for Indonesia

Bank of Indonesia's retail sales survey is at its lowest level, which signals persistent weakness. Exports saw a 13 straight month contraction. The household demand also dropped below 5% in Q2 2015.

Indonesia's credit growth is also weak, PMI also contracted 12 time consecutively. Indonesia's demand conditions were weak and it is expected to continue to be weak. However, the country's infrastructure started to rise, albeit with minimal impact this year.

"The recent bout of reform announcements by the government is highly positive for the economy, though we expect only a limited impact in the short to medium term. The key, however, remains the government's ability to implement the reforms. Overall, we continue to be less constructive on the economy for the full year 2015", says Societe Generale.