Recent Economy News: Economic Growth, Policy, and Trends

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Jakarta Post
Economy

Batam celebrates 55 years of industrial transformation

The celebration comes as the island’s investment reaches Rp 59.73 trillion in the first nine months of 2026, representing 85.33 percent of its annual target.

7 hours ago
Economy premium

Government to maintain fuel subsidies despite rising expenditure

The government has reaffirmed its intention not cut fuel subsidies despite surging global oil prices, banking on strong revenue growth to get the 2026 state budget safely to the finish line. ...

13 hours ago
Economy premium

Indonesia, Norway strike carbon credit deal at COP31

The agreement, touted as one of the largest transactions to date under Article 6.2 of the Paris Agreement, targets the sale of 12 million tonnes of carbon dioxide equivalent by 2038. ...

1 day ago

The Latest

Economy premium

Danantara doubles overseas bets as Indonesia seeks capital at home

The state asset fund plans to increase overseas investments and establish offices in major financial hubs, even as experts question whether its expanding international footprint will deliver enough benefits to the domestic economy.  

1 day ago
Economy premium

Prabowo set to open CEPA talks with Xi during APEC summit

President Prabowo Subianto plans to start preliminary talks with his Chinese counterpart Xi Jinping on a Comprehensive Economic Partnership Agreement (CEPA) between the two countries on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

2 days ago
Economy premium

Consumer confidence up in October despite cautious spending

Indonesia’s consumer confidence rose in October, driven by growing optimism about current and future economic conditions, while retail sales are also expected to edge up year-on-year despite shoppers holding back.

3 days ago
Economy

China's trade surplus soars past $1 trillion as AI boom powers exports

China's trade surplus surged past US$1 trillion in the first 10 months as a global race to build AI infrastructure buoyed sales of high-tech products and helped offset weak domestic demand, even as imports to the world's second-largest economy grow at a faster pace that its exports

3 days ago
Economy premium

Gas supply gaps to widen sharply amid sluggish exploration

Indonesia's recent decision to trim pipeline gas exports to Singapore is too marginal to ease supply gaps facing industrial plants in Java, with export capacity set to keep shrinking as demand outpaces production. Localized shortages are projected to widen sharply through 2028.

3 days ago
Economy premium

True cost of subsidized fuel double retail price, Bahlil says

The true cost of subsidized Pertalite was now twice its retail price, Bahlil told an unrelated event on Sunday, highlighting the government's part in covering the gap to avoid burdening consumers as global crude prices surged.

4 days ago
Economy premium

Trump’s midterm humbling offers little relief for Southeast Asian exporters

The Democrats’ flipping of Congress could increase pressure on the White House, but Trump retains broad authority over trade and foreign policy, leaving Indonesia and other exporters exposed to protectionist US import tariffs.  

4 days ago
Economy premium

Indonesia lands $385m in AI, industrial investment deals in UK

Finance Minister Suahasil Nazara emphasized the need to grow investment by 7 percent to help reach the country’s gross domestic product target. 

5 days ago
Economy

US urges China to meet rare earths commitments ahead of Trump-Xi meetings

Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer urged Chinese Vice Premier He Lifeng in a call to implement terms of the pact agreed in Busan, South Korea, in October 2025.

6 days ago
Economy premium

Jobless rate up as informal work still dominates

The official unemployment figure has increased this year and the amount of workers informally employed has been sustained at about the same level, which reflects a trend that Indonesia should reverse soon to avoid getting caught in the middle income trap.

1 week ago
Economy premium

China imports crimp local plastic industry, business group warns

Industry Minister Muhammad Sarmuji said the government was examining the factors behind the slowdown and exploring possible solutions.

1 week ago
Economy premium

Bad loans in P2P lending breaches OJK’s 5% cap

Annual growth in outstanding loan at peer-to-peer lending firms also slowed to 17.02 percent in September from 22.07 percent in August.  

1 week ago
Economy premium

RI posts strong GDP growth on better trade balance

An improved trade balance has helped Indonesia achieve strong gross domestic product growth in the third quarter, even as consumer spending and business investment slowed down from the preceding three months.

1 week ago
Economy

Indonesia economy picks up pace in third quarter

Household expenditure, the largest contributor to the growth, climbed five percent on-year, while investment jumped 6.1 percent.

1 week ago
Economy

Democrats gain influence over trade agenda but impact may be limited

Democrats' resounding sweep to a majority in Congress gives them a big microphone and spotlight to scrutinize President Donald Trump's trade policies, but largely leaves them unable to override his veto on any vote to overturn his tariffs or rescind trade authorities, trade and legal experts said on Wednesday.

1 week ago
Economy premium

Wiretapping scandal adds to market jitters, threatens investor confidence

Foreign investors stepped up their selling on Tuesday as news of the wiretapping case began circulating, recording net sales of Rp 575 billion (US$31.7 million) as the IDX Composite Index tumbled 3.78 percent.  

1 week ago
Economy premium

Finance Ministry forecasts GDP growth at 5.4 percent

Finance Minister Suahasil Nazara has projected that this year’s gross domestic product growth will touch 5.4 to 5.5 percent, in line with the state budget plan.

1 week ago
Economy

Investors brace for gridlock as Democrats projected to win House

Investors faced the potential for tougher regulation and oversight in areas such as AI as well as for legislative gridlock that could complicate the fiscal picture, as Democrats gained ground in the battle to wrest control of Congress from the Republicans.

1 week ago
Economy

Indonesia-EU trade: Mapping smallholders is the next step

According to Statistics Indonesia (BPS), smallholders tend 99.6 percent of its cocoa area, 98.6 percent of its coffee, 91.3 percent of its rubber and 43.9 percent of its oil palm, and most of this land is yet to be registered.

1 week ago
Economy premium

El Niño keeps food prices hot despite easing inflation

October’s volatile food inflation stood at 5.81 percent, continuing an upward trend that began in July.

1 week ago
Economy premium

Trade surplus narrows on rising energy imports

September's narrow trade surplus, which included an energy deficit of $2.31 billion due to a 37 percent jump in refined petroleum products, may shrink further on an anticipated rise in energy demand toward the year-end.

1 week ago
Economy premium

Domestic, foreign orders lift manufacturing activity in October

Despite stronger production, employment increased only marginally in October, according to the S&P Manufacturing Purchasing Managers’ Index (PMI), with job creation slowing from September.

1 week ago
Economy

South Korea to double spending on AI and chips in 2027

South Korea will double spending on AI and semiconductors in 2027 to a record high, the president said Monday, pledging to use the technology to turn the military into a "smart, elite force".

1 week ago
Economy premium

Prabowo wants businesses to do more for the nation

President Prabowo Subianto has asked the Indonesian Chamber of Commerce and Industry (Kadin) to become the government’s strategic partner, putting pressure on the organization to contribute more to national economic development.

1 week ago
Economy premium

WTO chief urges Indonesia to join interim mechanism, insists priority reform

WTO reform remained a priority despite related talks moving “much more slowly than we'd like”, WTO chief Okonjo-Iweala told reporters on Tuesday.

1 week ago
Economy

China's factory activity returns to contraction in October

China's factory activity slipped back into contraction territory in October, official data showed Saturday, despite sustained growth in high-tech industries, as the market for consumer goods weakened.

1 week ago
Economy premium

Hashim urges stronger tax collection, warns of capital flight risks

Kadin advisory board chairman Hashim Djojohadikusumo, who is also President Prabowo Subianto's younger brother, said Indonesia's state revenue amounted to just 12 percent of GDP, compared with 18 percent in Cambodia and 23 percent in Vietnam.

2 weeks ago

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