President Donald Trump on Tuesday said the United States and South Korea will work out a solution when asked about his surprise Monday announcement that he would increase tariffs on imports from the Asian ally to 25 percent.

Incoming Bank Indonesia (BI) deputy governor Thomas “Tommy” Djiwandono has suggested ending the so-called burden-sharing scheme between the government and the central bank but wants to harmonize fiscal and monetary policies in other ways to push economic growth.

German companies' investments in China hit a four-year high in 2025, according to data compiled for Reuters, underscoring how US President Donald Trump's trade war is pushing industries and governments to boost business ties elsewhere.

President Prabowo Subianto nominated Thomas, his nephew, on Jan. 19 to replace former deputy BI governor Juda Agung, who resigned with immediate effect on Jan. 13, according to BI.

In the first such large commitment for months, the IKN Authority has secured a commitment of nearly US$240 million from the Emirati real estate giant to build a mixed-use development in the future capital.

US President Donald Trump on Saturday warned Canada that if it concludes a trade deal with China, he will impose a 100 percent tariff on all goods coming over the border.

US business activity was steady in January as an improvement in new orders was offset by a lackluster labor market and lingering concerns among firms over higher costs because of import tariffs, a survey showed on Friday.

In his keynote speech at WEF 2026, the President painted the country as a "land of opportunity" while vowing to crack down on noncompliant businesses that continued to prop up the detrimental practice of "greednomics".

Half of Danantara's investments this year will go to public markets, largely in Indonesia, while it also evaluates opportunities in China, India, Japan, South Korea and Europe.

EU leaders heaved a sigh of relief over Donald Trump’s U-turn on Greenland as they met for an emergency summit in Brussels late on Thursday.

President Donald Trump warned Thursday of major reprisals if European countries dumped key holdings of US Treasury bonds to pressure Washington, as temperatures fluctuated over the future of Greenland.

Bank Indonesia, meanwhile, has projected Indonesia’s GDP to grow by around 5.3 percent year on year in 2026, supported by rising consumption and investment.

The agency revealed that Jakarta and Tangerang, despite facing the country’s most severe waste problems, were left out of the initial pilots as local administrations have yet to indicate their readiness.

The President secured 4 billion pounds in investment commitments during his state visit to the UK, which included a meeting with the king on conservation initiatives, before departing to deliver his keynote at Davos.

South Korea's economy unexpectedly shrank in the final quarter of 2025, marking the biggest slump in three years on weaker investment and exports, but the global AI boom is set to improve the outlook and allow the central bank to retain its steady rates stance.

Foreign investors sold a net roughly $6.4 billion worth of Indonesian government bonds in 2025, adding to the pressure on the currency.

The increasing costs of electricity purchased from IPPs, along with grid operation expenses, may lead to inflated state subsidies and compensation in the long run.

The rupiah slid to Rp 16,985 per US dollar on Tuesday ahead of a policy decision by the central bank this week, where analysts expect the BI to stand pat on rates. The currency is down nearly 2 percent in January after dropping 3.5 percent in 2025.

The Maritime Affairs and Fisheries Ministry is in the process of drafting a circular letter to ratify the agreement and outline registration procedures for accessing the zero-percent tariff.

Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a step major EU states decried as blackmail.

China's economic growth slowed to a three-year low in the fourth quarter as domestic demand softened, and while the full-year pace hit Beijing's target, trade tensions and structural imbalances pose significant risks to the outlook.

The Indonesian Hotel and Restaurant Association (PHRI) reported that hotel occupancy rates fell by 4 percent last year compared with the previous year.

At its 2026 economic outlook event on Jan. 15, Kadin cautioned against maintaining last year's budget policy to reduce regional transfers amid current global conditions, as doing so would only hamper local growth and exacerbate weakening demand.

US President Donald Trump on Saturday vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark's vast Arctic island.

The South American trade bloc Mercosur and the European Union will sign on Saturday a deal 25 years in the making to create one of the world's largest free trade areas at a time of growing protectionism and volatility.

The investment minister said on Thursday that he expected further growth in domestic investment this year, particularly via funding channeled by Danantara.

The US Supreme Court issued three decisions on Wednesday but did not decide the closely watched dispute over the legality of President Donald Trump’s global tariffs.

Coordinating Economy Minister Airlangga Hartarto said on Tuesday that President Prabowo Subianto had committed to the funding to keep technology competitive and sustain investment in the textile sector.

The Comprehensive Economic Partnership Agreement (CEPA) was signed in September last year during President Prabowo Subianto’s visit to Ottawa, marking a key milestone in Indonesia-Canada trade ties.

The former Indonesian’ finance minister’s appointment will bring valuable perspective thanks to her distinguished experience in economic and development policy, the foundation said.