Recent Economy News: Economic Growth, Policy, and Trends

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Jakarta Post
Economy premium

Thai businesses tap Indonesian market as domestic opportunities shrink

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.

37 minutes ago
Economy

The shortening life of food trends

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. ...

1 hour ago
Economy

House passes 2027 state budget bill into law

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. ...

2 hours ago

The Latest

Economy premium

Govt earmarks Rp 17 trillion for integrated livestock ecosystem

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.

1 day ago
Economy

China, US agree to AI dialogue, tariff cuts on $30b in goods during Xi visit

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.

2 days ago
Economy premium

Millions of informal sector workers ill-prepared for retirement

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

3 days ago
Economy premium

Severance, minimum wage remain sticking points in labor bill talks

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.

4 days ago
Economy premium

Indonesia races to seal EU trade deal as tariff incentive expires

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.

5 days ago
Economy premium

New US tariffs on Russian oil no issue for Indonesia, Airlangga says

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.

5 days ago
Economy

OECD lifts 2026 global growth forecast to 2.9% despite Mideast war

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.

5 days ago
Economy premium

BI keeps interest rate unchanged despite external pressure

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.

6 days ago
Economy premium

Gas supply drops to 78% in September, industry says

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

6 days ago
Economy premium

EV two-wheeler sales slump as incentive hangs in limbo, industry warns

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).  

1 week ago
Economy

Higher for longer, tighter for banks

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.

1 week ago
Economy premium

Pension still an afterthought for informal workers despite govt push

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.  

1 week ago
Economy premium

Govt under pressure as 3 million home drive hits cracks

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.

1 week ago
Economy premium

Govt settles remaining BLBI-related debt from 1998 crisis

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.

1 week ago
Economy premium

Ministry awards oil and gas blocks to Prabowo’s brother, Sinopec, others

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.

1 week ago
Economy

US Treasury's Bessent, China's He to launch talks on AI, trade, critical minerals

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.

1 week ago
Economy premium

State revenue hits 65% in August, Suahasil vows budget credibility

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.

1 week ago
Economy

ASEAN to roll out upgraded trade pact ahead of schedule

This pact seeks to make it easier for businesses and consumers to transact across Southeast Asia, covering areas such as e-commerce, digital payments, cross-border data flows and cyber security.

1 week ago
Economy premium

Finance minister promises tax refunds for eligible businesses

Business association Apindo has pointed to delayed tax refunds potentially impacting cash flow and liquidity to affect companies' wider operations.

1 week ago
Economy

House discusses changes to fiscal deficit limit

The spending limits have come under the spotlight since President Prabowo Subianto ​took office in October 2024 after making costly campaign promises and setting an 8% economic growth target.

1 week ago
Economy premium

El Niño dries up hydropower lifeline in South Sulawesi

PLN detailed that the aggregate generation capacity of the hydroelectric plants fell from approximately 850 megawatts (MW) to 250 MW.

1 week ago
Economy

US Fed raises rates to tackle 'too high' inflation, irking Trump

The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent.

1 week ago
Economy premium

El Niño chokes Indonesia’s coal exports as rivers run shallow

Citing data from the Shanghai Metals Market (SMM), Indonesia's coal exports totaled 36.10 million tonnes in August, down 23.34 percent year-on-year and 6.54 percent month-on-month, the lowest August level in five years.

1 week ago
Economy premium

Suahasil seen to prioritize fiscal discipline, continuity

The new finance minister is expected to favor predictable policy and tighter governance even as Prabowo pushes for growth.  

1 week ago
Economy

Purbaya says he was 'upset', but half expected removal

Known for his candor, Purbaya Yudhi Sadewa's tenure was marked by the fastest economic growth in three years, but also the widest budget deficit in over twenty years outside of the pandemic, and credit rating outlook downgrades by ratings agencies Fitch and Moody's.

2 weeks ago
Economy

Long-term sectoral growth patterns: What should we focus on?

The manufacturing sector’s contribution to GDP remains substantial, 19.1 percent in 2025, but its growth has lagged behind national growth, causing its share of GDP to decline over the past 15 years.

2 weeks ago
Economy

Prabowo sacks Purbaya, turns to familiar hand at Finance Ministry

Suahasil Nazara, former deputy finance minister, pledged after his inauguration to maintain a “healthy and credible” state budget.

2 weeks ago

Today's ePost

Tue, September 29, 2026

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