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.

Indonesia has recorded a slight increase in its inbound tourism, welcoming 1.01 million foreign visitors in January, Statistics Indonesia (BPS) data show.  

To mitigate further impacts, Indonesia is seeking alternative oil import sources outside the Middle East, including from the US.

Shipments of crude palm oil (CPO) surged 59.6 percent in January, while coal and steel exports declined by 16.04 percent and 0.13 percent, respectively.

Bank Permata chief economist Josua Pardede projected that headline inflation would remain above 3 percent in the first quarter of 2026 before moderating below 3 percent toward the end of the year.

The country’s headline Purchasing Managers’ Index (PMI) rose to 53.8 in February from 52.6 in January, marking the highest reading since March 2024. The index remained above the 50-point threshold, which separates expansion from contraction.

Maersk stated that the firm will continue to prioritize the Trans-Suez route once the situation stabilizes and security conditions permit again.

The OJK as well as industry observers have welcomed the Finance Minister's move to extend the liquidity injection policy for another six months in a bid to generate higher loan growth, while suggesting that a subsequent extension could be on the books when the current period ends in March.

Local think tanks are weighing in on the limited policy space and domestic benefits of the new US-Indonesia trade deal, even as businesses and policymakers wait to decide next moves amid the limbo left by the US Supreme Court's ruling.

Multiple vessels in the area have received VHF transmission from Iran's Revolutionary Guards that "no ship is allowed to pass the Strait of Hormuz".

The administration argued Friday for a delay of up to four months, before litigation on refunds is brought up again before the US Court of International Trade.

An analysis by Mandiri Institute showed that 72.3 million people experienced a talent mismatch last year, meaning their education levels did not align with their job requirements.

S&P Global Ratings warned that escalating debt-servicing costs are increasing the risks to Indonesia’s sovereign credit profile and could trigger a negative rating action if sustained.

Rising demand from hydropower plants, floating solar plants and data centers is intensifying supply pressure, highlighting the need for accelerated investment in dams, reservoirs and distribution networks.

Why disasters require timely recovery spending, and what the Sumatra disaster reveals about the limitations of budget orthodoxy

German Chancellor Friedrich Merz touched down in China on Wednesday, beginning his inaugural visit to his country's largest trade partner and a high-tech rival as Europe's biggest economy struggles.

Indonesia targets sugar self sufficiency for household consumption for 2028, followed by industrial refined sugar by 2030, while industrial salt sufficiency is set for 2027.

Indonesian exporters are worried that new United States import tariffs will reduce demand for their products in the world’s largest consumer market, starting Tuesday.

Indonesia should respect US domestic policy development, while mitigating profound structural risks from the tariff deal by planning a strategic approach over the coming months.

The national chip design development tracks will focus on automotive technology, Internet of Things, data centers and home appliances, among others.

The Finance Minister revealed that the fiscal deficit in January was at 0.21 percent of GDP, which he said was “very much under control and totally within the design corridor of the 2026 state budget”.

The European Commission called Sunday for Washington to abide by the terms of the trade deal struck last year with the EU, as President Donald Trump announced new global tariff hikes a day after an adverse Supreme Court ruling.

During a meeting with the House of Representatives on Feb. 10, Public Housing and Settlements Minister Maruarar Sirait revealed that the Meikarta land has been granted for free by Lippo Group to the government.

The court's ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world's largest chip maker and a key player in tech supply chains.

Trump's talks with Chinese President Xi Jinping on an extended visit to Beijing had been expected to revolve around extending a trade truce that kept both countries from further hiking tariffs.

By itself, the ruling is estimated to chop the trade-weighted average US tariff almost in half from 15.4 percent to 8.3 percent. Yet no one expects this to remain the status quo: the Trump administration has said that it can and will use other legal vehicles to reimpose tariffs.

While the conservative-majority Supreme Court ruled that Trump was not authorized by the International Emergency Economic Powers Act (IEEPA) to impose tariffs, the ruling does not impact sector-specific duties that Trump has imposed on imports of steel, aluminum and various other goods.

The US Supreme Court has struck down President Donald Trump’s sweeping tariffs that he pursued under a law meant for use in national emergencies, rejecting one of his most contentious assertions of his authority in a ruling with major implications for the global economy.