TOP NEWS
- Reuters — Investors are increasingly cautious on Indonesia after an $80 billion stock sell-off and a weakening rupiah, citing concerns that President Prabowo’s fiscal policies and governance shifts are eroding market credibility and leaving the country behind in the emerging-market rally.
- Tempo — Indonesia’s Jakarta Composite Index fell another 3 percent on February 2, extending steep losses as MSCI transparency concerns continued to drive foreign outflows and erase Rp1,198 trillion in market value.
Domestic Politics and Economy
- Reuters — January inflation climbed to a near three-year high of 3.55%, edging above Bank Indonesia’s target, while strong December trade lifted the 2025 surplus to $41 billion despite rising price pressures.
- Reuters — Indonesian stocks fell about 5% as weak commodities and lingering MSCI concerns weighed on sentiment, even after regulators reported constructive talks and deeper ownership disclosure commitments.
- Tempo — After the IHSG slid nearly 5% to its lowest level since September 2025, Danantara CIO Pandu Sjahrir said the correction was “not something to worry about” and called it a good buying opportunity.
- Tempo — OJK said it has agreed with IDX and MSCI on concrete reforms including deeper ownership disclosure, expanded investor classifications, and a gradual free-float increase.
- Jakarta Globe — Government leaders downplayed the market selloff as a reform catalyst, urging calm and framing volatility as momentum to build a more credible and transparent capital market.
- The Jakarta Post — Interpol issued a red notice for oil tycoon Mohammad Riza Chalid over his alleged role in a US$17 billion corruption and money-laundering case at Pertamina.
- Antara — President Prabowo’s policy speech at the 2026 National Coordination Meeting was framed as a moral and operational compass emphasizing unified, people-centered governance.
- Tempo — President Prabowo signaled a possible 2029 re-election bid, urging lawful political competition and warning against destabilizing protests.
- Reuters — Coal miners warned that proposed 2026 production cuts of up to 70% could trigger layoffs, hurt regional economies, and raise credit risks.
- The Jakarta Post — Abrupt mining permit revocations and asset transfers to state entities are fueling fears of creeping nationalization and damaging investor confidence.
- Tempo — President Prabowo said Indonesia’s free nutritious meal program has drawn international attention, reaching 60 million beneficiaries with strong long-term returns.
- The Jakarta Post — The flagship free meal program faces a Constitutional Court challenge over alleged violations of the education spending mandate.
- Antara — Indonesia reaffirmed its commitment to supporting Palestine and addressing the Gaza crisis through quiet diplomacy under the Board of Peace.
- Reuters — Indonesia imported 1,383 dairy cows from Australia under a US$3 billion plan to quadruple milk production and strengthen smallholder farming.
Business and Investment
- The Jakarta Post — Indonesia’s manufacturing PMI rose to 52.6 in January, marking a sixth straight month of expansion as domestic demand offset weak exports.
