TOP NEWS
- Tempo — Finance Minister Purbaya Yudhi Sadewa said the rupiah is undervalued and does not reflect Indonesia’s economic fundamentals, arguing it should be closer to Rp15,000 per US dollar given sustained capital inflows and regional currency trends.
- Tempo — Foreign Minister Sugiono said President Prabowo Subianto is expected to meet President Donald Trump in Washington or Mar-a-Lago to finalize the Indonesia–US tariff agreement, with both sides confirming that technical negotiations are complete and only awaiting schedule alignment.
Domestic Politics and Economy
- Reuters — Coordinating Minister for Economic Affairs Airlangga Hartarto has announced a Rp12 trillion social assistance package and Rp200 billion in Eid travel discounts to support low-income households and stimulate growth in the first quarter of 2026. Indonesia to Launch $700m Social Aid Program
- The Jakarta Post — Coordinating Economy Minister Airlangga Hartarto said Indonesia and the United States have finalized all terms of their reciprocal tariff agreement, with legal drafting nearly complete and the deal now awaiting signing by Presidents Prabowo Subianto and Donald Trump. US Tariff Talks Concluded, Deal Awaits Signing.
- The Jakarta Post — Indonesia’s Manpower Ministry reported that formal-sector layoffs rose for a fourth consecutive year in 2025, affecting at least 88,519 workers, as weakening demand, import competition, factory relocations, and global pressures increasingly push displaced workers into the informal economy.
- Reuters — Indonesian miners have suspended spot coal exports after proposed government output cuts of up to 24% sharply reduced quotas, tightening supply for Asian buyers and raising the risk of significant price increases across the region.
- Antara — Environment Minister Hanif Faisol Nurofiq reaffirmed Indonesia’s commitment to the Paris Agreement despite the US withdrawal, stressing that climate action remains vital for national resilience and will be backed by concrete policies such as carbon pricing and emissions control.
- The Jakarta Post — Indonesia quietly imported two cargoes of discounted Russian crude in December and January, according to shipping data, signaling opportunistic sourcing amid shifting global sanctions dynamics, even as state oil firm Pertamina denied importing Russian oil.
- Antara — State Secretary Prasetyo Hadi revealed that the government is finalizing a joint funding scheme between the public and private sectors to support President Prabowo’s nationwide gentengisasi (roof tile transformation) program, without relying solely on state and regional budgets.
- Reuters — After an $80 billion market rout triggered by MSCI’s transparency concerns, Indonesia has pledged urgent capital market reforms, including higher free-float requirements, deeper ownership disclosure, and exchange demutualisation, while mobilising domestic investors and Danantara to help restore confidence ahead of a potential downgrade review in May.
- Antara — Finance Minister Purbaya Yudhi Sadewa said any potential funding for Indonesia’s role in the US-backed Board of Peace (BoP) would come from the Defense Ministry’s budget, with possible reallocations if needed to maintain fiscal prudence.
- Antara — President Prabowo Subianto has announced a ban on exports of palm oil waste and used cooking oil, aiming to channel them into domestic biodiesel and aviation fuel production and strengthen Indonesia’s energy independence and reduce reliance on imports.
Business and Investment
- Antara — Danantara CEO Rosan Roeslani announced that the sovereign wealth fund will break ground on a US$1.1 billion integrated chicken farm on February 6 to support food security and the free nutritious meal program while stabilizing poultry supply chains.
- Reuters — Boeing confirmed it has halted its F-15EX fighter jet program for Indonesia, effectively ending a major defense deal signed in 2023 and signaling a shift in Jakarta’s military procurement outlook.
- The Jakarta Post — The Association of Indonesian Automotive Manufacturers (Gaikindo) reported that Indonesia’s car exports reached a record 518,000 units in 2025, underscoring strong global competitiveness and market diversification, even as domestic sales continued to weaken amid soft consumer demand and fading incentives.
- Antara — Investment and Downstreaming Minister Rosan Roeslani said Indonesia aims to complete preparations for coconut downstreaming projects by the end of 2026, supported by rising investment, including from China, to strengthen value-added production and create up to 10,000 jobs.
