TOP NEWS
- The Jakarta Post — Indonesia and the United States have elevated ties to a Major Defense Cooperation Partnership focused on military modernization and joint operations, while Jakarta maintains a cautious stance to safeguard its non-aligned policy and sovereignty.
- Reuters — Indonesia is proceeding cautiously on a proposed U.S. military overflight deal, with the foreign ministry urging a delay over regional risks while the defence ministry reviews and adjusts the proposal to safeguard sovereignty
- The Jakarta Post — President Prabowo is intensifying strategic diplomacy across Europe, meeting French President Emmanuel Macron while deepening energy and industrial ties with Russia, to strengthen partnerships and secure Indonesia’s position amid global energy volatility and geopolitical tensions.
Domestic Politics and Economy
- Tempo — Indonesia’s benchmark index rebounded over 2% on easing geopolitical tensions and the reopening of Hormuz, though volatility remains high as markets weigh renewed global risks, energy price uncertainty and potential domestic policy adjustments.
- The Jakarta Post — Indonesia’s plan to transform PNM into a dedicated MSME lender is drawing skepticism, with experts warning it may duplicate existing institutions without addressing deeper structural issues in credit access and borrower viability.
- The Jakarta Post — Indonesia’s Cabinet Secretary is facing backlash after criticizing “observer inflation,” with analysts warning the remarks reflect growing government sensitivity to dissent and rising concerns over the space for critical voices.
- Tempo — Health Minister Budi Gunadi Sadikin said Indonesia has introduced a color-coded nutri-level labeling system for sweetened beverages to help consumers manage sugar intake and curb rising health risks, with phased implementation for industry compliance.
- Antara News — Pertamina will follow government directives regarding potential Russian oil imports, as Energy Minister Bahlil Lahadalia confirmed that Prabowo-Putin talks are advancing concrete cooperation in refining, oil trade, and technology to strengthen Indonesia’s energy security amid global volatility.
Business and Investment
- Tempo — Finance Minister Purbaya Yudhi Sadewa stated that global investors, including BlackRock and HSBC, are showing renewed interest in Indonesia after gaining confidence in its fiscal direction and growth outlook following high-level engagements in the U.S.
