The target for year-on-year GDP growth of 5.5 to 6 percent in the first quarter remains in place, Finance Minister Purbaya Yudhi Sadewa announced on Wednesday.

The economy of Batam continued to show strong momentum toward the end of 2025, with economic growth reaching 7.49 percent year-on-year (yoy) in the fourth quarter (Q4), the highest among regions in Riau Islands province.

Micro, small and medium enterprise (MSME) loans contracted by 0.53 percent year-on-year (yoy) in January to Rp 1,482.9 trillion, amid “global and domestic economic dynamics” and a slower post-pandemic recovery.

The selection process is accelerated because of concerns about financial market volatility due to conflict in the Middle East, Finance Minister Purbaya Yudhi Sadewa said.

Economists say the downward revision could raise lenders’ funding costs and put pressure on share and bond prices, though strong capital and profitability should cushion the impact.  

Respondents to the BI survey believe that sales will remain “relatively stable” in April and increase in July, driven by the school vacation “peak season” during that period.

The government may accelerate plans to expand the use of biofuel and bioethanol as soaring global oil prices triggered by the Middle East conflict raise concern over the cost of imported fossil fuels.

The currency briefly breached the psychological threshold of Rp 17,000 per US dollar on Monday morning, flirting with the historic low of Rp 17,300 registered during the Asian financial crisis of 1997 and 1998.

Despite being framed as a corporate contribution to support public housing, analysts pointed out that transfers of strategic urban land to the state are rarely neutral in economic terms.

The dollar was up 0.9 percent at $1.1518 on the euro, its highest since November.

PLN's reassurances stand in stark contrast to warnings from independent power producers, whose stockpiles have fallen to an average of 10 operating days, well below the 25-day benchmark considered ideal.

Speaking at an emergency meeting on the impact of the Middle East crisis, Lee said the government would "swiftly introduce and boldly implement" a maximum price system on petroleum products "that have recently seen excessive price increases".

The ministry of finance said Sunday it had drafted a decree that would slash import tax rates to zero on some petroleum products to "help stabilize the domestic market and ensure national energy security".

India is the fastest-growing major economy, but not everyone has been able to enjoy the boom times as opportunities remain uneven.

WTO experts in January 2025 largely upheld EU restrictions on the use of palm oil in biofuels following complaints by Indonesia.

While striking down the tariffs that were a central part of Trump's economic policy as unconstitutional, the US Supreme Court did not say how the collected tariffs should be refunded, leaving small importers worried the process would be expensive and time-consuming.

The US economy unexpectedly shed jobs in February and the unemployment rate increased to 4.4 percent, potentially hinting at a deterioration in labor market conditions that could put the Federal Reserve in a difficult spot amid rising oil prices.

According to the Indonesian Food and Beverage Producers Association (Gapmmi), past disruptions of shipping routes could raise transportation costs by as much as 30 to 40 percent.

ASEAN 6 continues to benefit from deep integration into global manufacturing value chains, supported by a sizeable domestic market, UBS said.

The Energy and Mineral Resources Ministry offered up to a 50 percent split for potential cooperation contractors (KKKS), a significant bump up from the previous limit of 15 to 30 percent.

The outlook for Indonesia's credit rating has dimmed further as Fitch Ratings revised its view to “negative” from “stable”, adding to warnings over policy uncertainty following a similar downgrade from Moody’s.  

"The escalating crisis in the Middle East is significantly worsening the global economic and security environment," President Lee Jae Myung said.

Asia sources 60 percent of its oil from the Middle East, leaving the region vulnerable to the disruptions. Refiners in Indonesia and Japan are sourcing more oil from the US to replace the shortfall. India will consider buying more from Russia, sources at two companies have said.

China set its economic growth target for 2026 at 4.5%-5%, a slight downgrade from the 5% pace achieved last year, which leaves room for greater, albeit not decisive, efforts to curb industrial overcapacity and rebalance the economy.

Purbaya said expenditure on Indonesia's free meals program could be scaled back, saving the country about Rp 100 trillion ($6 billion).

The United States-Israeli attack on Iran has sent global oil prices surging past US$80 per barrel, putting additional strain on the state budget, which could force painful adjustments.

Unlike in 2025, saving conditions entering Ramadan this year are weaker across income segments, limiting the spending before the disbursement of holiday bonuses.