TOP NEWS
- Tempo — Finance Minister Purbaya Yudhi Sadewa has approved a VAT-free policy for domestic economy-class airfares during the Eid period, with the government covering the full 11 percent VAT to ease travel costs and support purchasing power as part of a broader Rp911 billion transport stimulus package.
Domestic Politics and Economy
- Reuters — Minister Airlangga Hartarto said President Prabowo Subianto is expected to sign a tariff agreement with the United States during his visit to Washington on February 19
- Tempo — Energy Minister Bahlil Lahadalia has signaled that the Martabe gold mine permit could be reinstated if no violations are found, stressing that the government’s reassessment under President Prabowo aims to uphold legal certainty, protect investor rights and maintain economic momentum in Sumatra while enforcing sanctions where breaches are confirmed.
- Antara — Agriculture Minister Andi Amran Sulaiman has assured President Prabowo Subianto that national food stocks, including rice reserves projected to reach 4 million tons by March, are secure and sufficient through Ramadan and Eid, supported by rising production and strengthened price controls to safeguard supply and stability.
- Reuters — Indonesia’s decision to pause its 50% biodiesel mandate, combined with rising output forecasts, is expected to weigh on global palm oil prices in the near term, although strong Indian demand and slower longer-term production growth could help stabilize the market.
- The Jakarta Post — The government has pledged to overhaul governance of the national health insurance (JKN) program after more than 11 million low-income recipients abruptly lost subsidized coverage due to a welfare data update, prompting a three-month extension while authorities reassess eligibility and address gaps in poverty data and interagency coordination.
- Reuters — Gunmen in Indonesia’s Papua region killed two Smart Air pilots and a soldier and injured several others in separate attacks on a small aircraft and a PT Freeport Indonesia convoy, underscoring escalating security risks around key mining operations in the restive, resource-rich province.
- Reuters — Indonesia’s Attorney General has arrested 11 individuals, including customs and industry officials, over an alleged scheme to misclassify crude palm oil exports to bypass domestic sales obligations and higher export levies, causing up to $850 million in estimated state losses.
Business and Investment
- Tempo — Coordinating Minister for Economic Affairs Airlangga Hartarto has said the government will use Friday’s Indonesia Economic Outlook forum to clarify comprehensively fiscal conditions, state revenue prospects, and the role of the sovereign wealth fund Danantara, as it responds to Moody’s outlook downgrade and broader market scrutiny ahead of upcoming Fitch and S&P reviews.
