TOP NEWS
- Reuters — Indonesia posted its fastest growth in three years in 2025 at 5.11 percent, driven by stronger consumption and investment, but analysts caution that fiscal risks, weak tax revenue, and fragile investor sentiment could complicate President Prabowo’s push toward an ambitious 8 percent growth target.
Domestic Politics and Economy
- Antara — MSMEs Minister Maman Abdurrahman has announced that the government will soon launch the Sapa UMKM super app to digitally integrate financing, training, licensing, and market access for Indonesia’s 57 million small businesses, aiming to modernize support and improve policy targeting.
- The Jakarta Post — Finance Minister Purbaya Yudhi Sadewa has defended keeping Indonesia’s 2025 budget deficit near the 3 percent legal cap as a deliberate countercyclical move to prevent recession, while dismissing forecasts of a larger shortfall and reaffirming his commitment to fiscal discipline.
- Antara — Coordinating Economy Minister Airlangga Hartarto has announced that the government will fully cover the 11 percent VAT on airfares during the 2026 Eid homecoming season, alongside wider transport discounts, to ease travel costs and support consumer spending.
- Reuters — Coordinating Economy Minister Airlangga Hartarto has played down Moody’s decision to cut Indonesia’s outlook to negative, saying global rating agencies have yet to fully understand the government’s growth strategy and stressing that risks from higher spending will be managed through investment led by Danantara Indonesia.
- Tempo — The rupiah slipped to around Rp16,840 per dollar as investors grew cautious about US interest rate policy, with analysts noting that Bank Indonesia’s market interventions and steady domestic growth are helping to contain further pressure.
- Antara — Coordinating Minister Zulkifli Hasan has directed all ministries, security forces, SOEs and schools to join the nationwide “Indonesia ASRI” cleanup drive, saying the government is prioritising large-scale, coordinated waste management to improve public health, urban livability, and Indonesia’s appeal to tourists.
- Tempo — Home Affairs Minister Tito Karnavian said the government has begun building 1,300 temporary housing units across disaster-hit areas in Sumatra as part of accelerated rehabilitation efforts, alongside infrastructure repairs and cash assistance to help nearly 90,000 affected households recover.
Business and Investment
- Antara — Danantara Indonesia COO Dony Oskaria said Indonesia will position PT PAL as the anchor holding company for state-owned shipyards to centralise procurement and project management, strengthen domestic shipbuilding capacity, and support efficiency, exports and fleet renewal.
- The Jakarta Post — Foreign Minister Sugiono said Indonesia and Slovakia are laying the foundation for a future strategic partnership by expanding cooperation in energy, defense, infrastructure, and education, while exploring Slovakia’s nuclear expertise and inviting its firms to invest and collaborate with Danantara after a 16-year gap in high-level visits.
Energy and Sustainability
- The Jakarta Post — Pertamina has merged its fuel trading, refining, and shipping units into a single downstream subholding under Patra Niaga to boost efficiency, strengthen energy security, and tighten governance following a major fuel import corruption scandal.
- Reuters — Indonesia plans to mandate a 10 percent bioethanol blend in gasoline by 2028 to cut fuel imports and boost energy self-sufficiency, though supply constraints have already delayed the rollout and will require major upgrades in production and infrastructure.
- Reuters — Energy Minister Bahlil Lahadalia said Indonesia is in talks with India’s Essar Group and Pertamina to develop a new oil refinery, framing the plan as part of the government’s push to boost domestic processing capacity and strengthen national energy security.
Automotive and EV
- Antara — Industry Minister Agus Gumiwang Kartasasmita said Indonesia’s automotive sector is being sustained by a nearly 10 percent rise in vehicle exports in 2025, even as domestic car sales weakened, underscoring the government’s push to anchor industry growth on global markets.
- Tempo — Industry Minister Agus Gumiwang Kartasasmita said Indonesia is accelerating its push toward net-zero manufacturing by 2050 through rapid EV adoption and battery investments, citing surging electric and hybrid vehicle sales as evidence of a structural shift toward a cleaner industry.
