A "handful" of Group of 20 trade ministers rejected calls by the United States to curb excess industrial capacity and "non-market" policies, the US Trade Representative's office said on Friday, exposing divisions within the group of major economies.

President Prabowo’s appointment of Bahlil Lahadalia as coordinating downstreaming and energy transition minister as well as Muhammad Sarmuji as the industry minister sparks calls for regulatory reform, policy continuity and an end to fragmented policymaking.

The food price squeeze could persist into next year as El Nino conditions linger into early 2027, raising the risk of weaker agricultural output and further price increases.

Indonesia has seen an uninterrupted streak of monthly trade surpluses from early 2020 until May, when a dramatic surge in oil and gas prices due to conflict in the Middle East caused a $1.6 billion deficit in Indonesia’s trade with the rest of the world.  

The stronger PMI reading, however, contrasts with the latest Industry Confidence Index (IKI) from the Industry Ministry, which showed a slowdown in manufacturing activity expansion in September.

The government aims to revive the textile industry by facilitating financing from local banks for machinery upgrades, while considering tax incentives and establishing a special zone to integrate upstream and downstream production.

The global bank has forecast that Indonesia's GDP growth will be sustained at a pace of 5.4 percent in 2026 before slowing slightly to 5.2 percent next year.

Indonesia’s large domestic market could justify to set up a local production, while import restrictions and quotas had further prompted some Thai businesses to consider investing locally rather than exporting directly from Thailand.

Indonesians are not steadily abandoning small treats, nor are they rapidly increasing the share of their food budgets devoted to them, but the products competing for that pool are changing faster.

Spending and revenue ​next year were approved at Rp 4.1 quadrillion and ⁠3.4 quadrillion, respectively, representing increases of about ​4 percent and 7 percent from the latest estimates for this ​year's budget.

The Agriculture Ministry has earmarked around Rp 17 trillion to develop an integrated livestock industry across Indonesia, with five initial sites targeted for completion next year as the government seeks to strengthen domestic supplies of chicken, eggs and milk.

The tariff reductions would apply to US exports such as agricultural goods, wood and cosmetics, as well as US imports including small appliances, toys and decorations.

Many Indonesians are making do without old-age saving plans as they grapple with unstable incomes and employment.

The Confederation of All Indonesian Trade Unions (KSBSI) called for labor rules that balance business sustainability with worker protection while adapting to changes in the workforce.

The EU has confirmed that Indonesia will leave the GSP from Jan. 1, 2027, after being classified as an upper-middle-income country for three consecutive years.

According to the coordinating economy minister, Indonesia's Russian crude deal in April will not be subject to the new tariff, as it was agreed during a window when it was allowed.

Economic growth has remained "resilient" in many countries despite the war in the Middle East, the OECD said Wednesday as it slightly raised its GDP forecasts for the year.

Bank Indonesia (BI) has kept its benchmark interest rate unchanged despite high global energy prices and a recent hike by the United States Federal Reserve (Fed), while relying on hedging to protect the rupiah.

The restrictions have disrupted production with some business players reducing smelting activity, shutting production lines and furloughing workers. 

Electric motorcycles sales have fallen sharply from 70,000 units last year to only 18,900 until August this year, according to the Indonesian Electric Motorcycle Industry Association (Aismoli).  

Global interest rates are also likely to remain relatively high, as the Federal Reserve raised the Fed Funds Rate (FFR) by 25 basis points to 3.75 percent-4 percent at its September 2026 meeting.

The government says pension fund coverage must be extended to include Indonesia’s massive informal sector and lift up the sluggish industry, but the push is constrained by low awareness and unstable incomes.  

The Independent Housing Stimulus Assistance (BSPS), which helps homeowners renovate their houses, had reached only 32.5 percent of its 400,000-unit target for 2026 as of Sept. 17.

The government has fully settled its remaining debt related to the Bank Indonesia Liquidity Assistance (BLBI) program issued during the 1997-1998 financial crisis, using Rp 55 trillion in Bank Indonesia surplus funds.

PT Nations Petroleum, an oil and gas company under the Arsari Group, owned by Hashim Djojohadikusumo, the younger brother of President Prabowo Subianto, secured the Natuna D-Alpha working area through the direct offer mechanism.

United States Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet on Sunday to try to tee up potential agreements on AI, tariffs and critical minerals for a high-stakes Washington summit this week between US President Donald Trump and Chinese President Xi Jinping.

State spending as of the end of August reached only 59.7 percent of this year's allocation as the new finance minister gears up to focus on fiscal continuity.