Indonesia Daily Brief (March 11, 2026)

Reuters — Indonesia plans to cushion the impact of surging global oil prices by increasing fuel subsidies through the state budget while maintaining its fiscal deficit target and keeping domestic fuel prices stable in the near term.
The Jakarta Post — President Prabowo Subianto claimed that Indonesia will maintain its long-standing “free and active” foreign policy, remaining nonaligned and avoiding any geopolitical bloc, even as global tensions intensify, particularly amid the ongoing conflict in the Middle East.

Reuters — Finance Minister Purbaya Yudhi Sadewa said Indonesia is accelerating the appointment of new leadership at the Financial Services Authority (OJK) to stabilize markets and strengthen regulatory oversight amid recent market volatility and global uncertainties stemming from the Middle East conflict.
Reuters — Global portfolio inflows into emerging markets slowed to $21.7 billion in February, with Indonesia experiencing localized outflows from equities and sovereign bonds amid domestic market concerns, even as overall investor interest in emerging markets remained positive.
Reuters — Major platforms, including YouTube and TikTok, are engaging with the Indonesian government to clarify and adapt to new regulations requiring social media accounts for users under 16 to be deactivated starting March 28, as Jakarta moves to strengthen online safety for minors.
Reuters — Indonesia has signed an agreement with India to procure the BrahMos missile system, marking a step in Jakarta’s ongoing military modernization, particularly to strengthen maritime defense capabilities.
Reuters — Deputy Energy Minister Yuliot Tanjung expressed that Indonesia is reviewing the potential rollout of a B50 palm oil–based biodiesel mandate later this year as part of contingency measures to manage the impact of surging global oil prices driven by the Middle East conflict.

The Jakarta Post — Fitch Ratings has revised the outlook on several major Indonesian banks to negative following a similar downgrade of the country’s sovereign outlook, raising concerns over potential increases in funding costs and market pressure, though the sector’s strong capital buffers and profitability are expected to help cushion the impact.
The Jakarta Post — Indonesia’s state asset fund Danantara is preparing up to $1 billion in financing for a subsidized vertical housing project in Cikarang, supporting President Prabowo’s 3-million-homes program through a public–private collaboration involving land donated by Lippo Group.