Indonesia’s manufacturing sector has slipped back into contraction territory as weaker output and employment offset a modest recovery in new orders, according to S&P Global.

The US and Iran found themselves back on a war footing on Wednesday after the most significant exchange of fire in weeks.

Based on its investment activity report (LKPM), Batam’s investment realization in H1 2026 reached Rp 29.89 trillion (US$1.8 billion), equivalent to 45.3 percent of its full-year target.

Tax revenue in 2027 is projected at around 9.3 percent of GDP. Adding customs and excise raises the ratio to roughly 10.4 percent, slightly above 10.2 percent of GDP in the 2026 outlook.

Indonesia has restored its trade balance to a small surplus in July thanks to surging outbound shipments of crude palm oil and coal.

The consumer price index (CPI) growth rose to 3.19 year-on-year (yoy) in August, Statistics Indonesia (BPS) official Ateng Hartono revealed in a press conference on Tuesday, well within the government’s and Bank Indonesia’s (BI) target range of 2.5 plus/minus 1 percent.  

Finance Minister Purbaya Yudhi Sadewa expects Danantara to remit Rp 120 trillion ($6.76 billion) in dividends from state-owned enterprises (SOEs) to the state budget this year, marking a change from the initial plan for running the state asset fund.

The government aims to boost bank lending to micro, small and medium enterprises (MSMEs) by raising the credit target from Rp 1.5 quadrillion (US$84.6 billion) to Rp 2 quadrillion in 2027, but doubts remain over whether the move will effectively address structural issues that have hindered lending to the sector.  

The Danantara Housing Expo booked Rp 2 trillion in settled transactions, below an initial target of Rp 6 trillion to Rp 10 trillion, while loan disbursement for subsidized housing fell 15 percent year-on-year amid supply constraints, pointing to ongoing challenges in the government’s 3 Million Homes program.  

Bessent said in an interview ahead of a G20 finance leaders meeting that the current flood of exports from China was unsustainable, even though the US direct trade position with China was "rapidly improving."

Five years after its establishment, the Indonesia Investment Authority (INA) has demonstrated how strong governance, commercial discipline and global partnerships can mobilize long-term capital while supporting Indonesia's sustainable economic development.

Indonesia's current account deficit reached a historic high in the second quarter that, if sustained, would put new pressure on the rupiah’s exchange value.

President Donald Trump said Friday his administration has reached a huge oil deal with Venezuela that gives the United States majority control of 65 billion barrels of proven petroleum reserves.

The event offers prospective homebuyers a range of financing options, including down payments starting at 1 percent, mortgage rates from 2.75 percent per year and loan tenors of up to 30 years.

A race between member countries to attract factories undermines ASEAN ambitions to become a unified economic powerhouse, analysts say.

Indonesia’s shipbuilding industry is facing mounting pressure from a lack of domestic orders for ship construction that has persisted since the coronavirus pandemic.

The alert comes amid concerns over the country's upstream production performance, with average oil production from January to July 2026 standing at 578,156 barrels per day, only 95 percent of the 610,000 bpd target set in the state budget.

Georgieva said that there was a "tug of war" between the negative Gulf energy supply shock and growth tailwinds from the artificial intelligence investment boom that was starting to spread beyond US borders.

GAPKI chairman Eddy Martono said that the significant impact of a severe El Niño on palm oil production could be felt as early as next year. 

At the event on Tuesday, President Prabowo Subianto broke ground on solar power plants in Banyuwangi and Pasuruan in East Java, as well as at Gajah Mungkur Reservoir in Central Java, with a combined capacity of 396.4 MWp.

The outgoing EU ambassador to Indonesia, Denis Chaibi, whose term ends this month, told The Jakarta Post that stable regulations and fewer trade barriers would be key to attracting European investment in view of the signing of the Indonesia-EU CEPA in October.

After incurring a loss of nearly $290 million in the first six months of 2026, the government is finally stepping up to take over the operation and maintenance of the Jakarta-Bandung HSR, according to the finance minister.

The announcement comes almost six months into a war on Iran that has ground to a stalemate, with stalled peace talks and Tehran blocking most traffic through the crucial Strait of Hormuz.

Norway will continue developing its oil and gas resources in the Barents Sea regardless of the European Union's support for a moratorium on Arctic hydrocarbon supplies, and no longer sees itself as Europe's "green battery", Energy Minister Terje Aasland told Reuters.

Without detailing specific measures, US Treasury Secretary Scott Bessent signaled Washington would target "fearful nations" that practice "appeasement" by engaging with Iran's economy and financial system.

Combined investment from mainland China and Hong Kong reached US$11.5 billion in H1 2026, nearly three times the $4.1 billion recorded a year earlier.

Negotiations between the neighboring countries broke down Friday in Washington, putting into force new 50-percent US tariffs impacting about $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States.