TOP NEWS
- The Jakarta Post — Indonesian markets fell sharply again after Moody’s cut the country’s outlook to negative, dragging stocks and the rupiah lower as investors grew more cautious over policy predictability, governance risks, and the sustainability of President Prabowo Subianto’s ambitious growth agenda despite government assurances that fundamentals remain sound.
- Tempo — Moody’s has revised the outlook on five of Indonesia’s largest banks to negative (BCA, Bank Mandiri, BNI, BRI, and BTN), citing heightened risks to policy credibility and communication following the sovereign outlook cut. The government has therefore sought clearer explanations and mitigation plans from the banking sector.
Domestic Politics and Economy
- Antara — President Prabowo Subianto has invited Australia to co-invest with Indonesia’s sovereign wealth fund, Danantara, in agriculture and critical minerals, positioning joint farming and downstream mining projects as a new pillar of bilateral ties alongside a newly signed security pact to support regional stability.
- Antara — Coordinating Economic Affairs Minister Airlangga Hartarto has instructed the sovereign wealth fund Danantara to clarify Indonesia’s revised fiscal and investment framework to Moody’s, stressing that budget discipline remains intact, with the deficit capped at 3 percent of GDP and debt below 40 percent, despite institutional changes.
- Antara — Cooperatives Minister Ferry Juliantono has backed President Prabowo’s nationwide “gentengization” drive, urging village cooperatives to adopt new technology that blends coal waste with clay to produce cheaper, lighter, and more durable roofing tiles while advancing environmental goals and local industry.
- Antara — OJK Acting Chair Friderica Widyasari Dewi has announced the formation of a Capital Market Integrity Reform Task Force to fast-track governance, transparency, and free-float reforms, signaling a decisive push to restore investor confidence after recent market volatility.
- The Jakarta Post — Indonesia’s anti-graft agency has arrested senior judges in Depok over an alleged Rp850 million bribery scheme to fast-track a land eviction ruling, renewing concerns over judicial integrity despite last year’s steep pay rises meant to curb corruption.
Business and Investment
- Reuters — Danantara CEO Rosan Roeslani announced the launch of US$7 billion in downstream natural-resource projects, from green aviation fuel and bioethanol to alumina smelters and food production, aimed at accelerating value-added growth and delivering tangible economic benefits under President Prabowo’s agenda.
