TOP NEWS
- Reuters — MSCI has extended its review of Indonesia’s stock market reforms to June, keeping investors in a holding pattern as authorities work to address transparency concerns following a warning that triggered significant capital outflows and market underperformance.
- Tempo — Indonesia is accelerating its energy transition with a targeted rollout of 17GW in solar capacity this year, as President Prabowo pushes to replace diesel-based power and reduce subsidy burdens.
Domestic Politics and Economy
- Reuters — Indonesia is ramping up coal output and accelerating its B50 biodiesel rollout from July as part of broader efforts to shield the economy from global energy shocks triggered by the Middle East conflict.
- Reuters — Bank Indonesia is widely expected to hold interest rates at 4.75% through 2026 as inflation risks and rupiah pressure from the Iran-linked energy shock limit room for monetary easing.
- Tempo — President Prabowo and National Economic Council chief Luhut Pandjaitan reviewed policy options to safeguard purchasing power and fiscal stability amid global uncertainty, including expanding digital social assistance and positioning Indonesia to attract new capital inflows.
- The Jakarta Post — Energy Minister Bahlil Lahadalia said Indonesia may raise non-subsidized fuel prices further if global oil rallies persist, underscoring continued exposure to external energy shocks despite efforts to keep subsidized prices stable.
- The Jakarta Post — Law Minister Supratman Andi Agtas said Indonesia’s newly passed domestic worker protection law, after more than two decades, marks a major step in ensuring legal certainty, labor rights, and social protections for millions of workers.
Business and Investment
- Reuters — Indonesia is in talks with Toyota on a potential $200–300 million bioethanol project in Lampung, underscoring efforts to scale domestic renewable fuels and reduce reliance on imported energy ahead of a planned ethanol-blending mandate.
- Antara News — Indonesia will enter the OECD accession review stage in July, a move widely backed by the business community as a catalyst to strengthen governance, regulatory certainty and long-term investment appeal.
