Indonesia Daily Brief (February 20, 2026)

Reuters — Indonesian and U.S. companies have signed 11 preliminary agreements worth $38.4 billion across mining, energy, agriculture, textiles, and technology in Washington, signaling deepening commercial ties ahead of a planned bilateral tariff deal.
The Jakarta Post — Indonesian and U.S. companies have signed over $7 billion in trade and investment agreements spanning agriculture, critical minerals, energy, and semiconductors ahead of President Prabowo Subianto’s meeting with President Donald Trump to finalize a broader bilateral trade pact aimed at deepening economic ties and narrowing Indonesia’s trade surplus.

Reuters — Bank Indonesia Governor Perry Warjiyo has kept the benchmark rate at 4.75% while stressing that the rupiah is fundamentally undervalued and is mainly pressured by global risk sentiment rather than domestic weaknesses, pledging continued currency intervention and signaling that rate cuts will resume once exchange rate stability returns.
Tempo — Indonesia’s recent fiscal maneuvers to contain the budget deficit, including tapping central bank surplus funds and delaying subsidy payments, have raised governance concerns among ratings agencies and risk undermining investor confidence if structural imbalances are not addressed.
Tempo — Jakarta Governor Pramono Anung expressed that the provincial government will intervene to stabilize chili prices ahead of Eid al-Fitr by purchasing supply and distributing it with a controlled margin, as part of efforts to manage weather-driven shortages and curb inflation.
Tempo — Finance Minister Purbaya Yudhi Sadewa said the OJK commissioner selection process remains open as the committee awaits stronger, more qualified candidates, underscoring the government’s intent to reinforce regulatory credibility following recent resignations at the financial watchdog.

Reuters — Indonesia’s investment minister and Freeport-McMoRan have signed an MoU to extend Freeport Indonesia’s mining permit beyond 2041, signaling long-term certainty for the Grasberg operation and reinforcing Jakarta’s push to strengthen strategic economic ties with the United States.