The senior economy minister says Jakarta has submitted a request to Washington that Indonesian palm oil be exempted from Trump's latest tariff regime, even as the country remains subject to a separate US probe into alleged excess manufacturing capacity.

Marcos made the suggestion in a wide-ranging State of the Nation speech that placed spiralling energy costs and inflation, driven by the war in the Middle East, centre-stage.

Local soybean farmers have produced just 8 percent of national demand over the past five years, according to a senior food official, who also said the government was cooking up a variety of strategies, including a targeted subsidy, to boost output to accelerate its self-sufficiency agenda.

Most of Australia's domestic oil refineries were built during the 1950s and 1960s, but high operating costs and the emergence of large refineries across Asia forced many to shut down over the past three decades.

Indonesia recorded 32,389 layoffs in the first half of this year, with nearly one-fifth of the job losses occurring in West Java.

Economists noted that Perry's successor must be a respected technocrat with deep monetary-policy experience and sufficient independence from political interests.

Protests over a data center complex in Johor state's southern tip — the epicenter of the boom — were the first of their kind in the country. In Selangor, the richest and most populous state, debate about the burden on communities has become politicized.

Perry's departure comes just weeks after BI aggressively tightened monetary policy, raising its benchmark interest rate by a cumulative one percentage point to 5.75 percent through three hikes in the span of four weeks during May and June.

A previous JETRO survey conducted in August and September of last year found that over a third of Japanese companies in Indonesia projected an increase in profits this year and everything shifted after the war began.

Business groups warned that export-oriented manufacturers are likely to bear the brunt of the new tariff regime, particularly those heavily dependent on the US market.

The senior economy minister has divulged that Australia, Canada and China would join the US in receiving special treatment under the latest version of the DHE SDA policy, with the government set to discuss further details until announcing the final arrangement.

The levies, effective Friday, range from 10 percent to 12.5 percent and impact major economies like China, India and the European Union.

As building a strategic oil reserve primarily involves purchasing and storing oil that generates little to no profit, experts said the government must provide stronger incentives and assurances to attract private investors.

Bank Indonesia projects that loan growth in 2026 will be maintained within the range of 8-12 percent.  

Indonesia is among 14 economies facing a proposed 10 percent tariff linked to a US investigation into alleged forced-labor concerns.

The move comes as the United States under President Donald Trump fights a war with Iran that began in large part over concerns with Tehran's nuclear program, an issue that remains a key point of contention during now-stalled peace talks.

Households in India have long relied on an informal army of domestic workers to mop floors, wash dishes and cook meals. A growing crop of tech start-ups is now attempting to bring structure to the unregulated sector.

The company is expected to continue operating its other business unit in Semarang, Central Java.

The comfortable lead Indonesia has enjoyed against its regional peers in attracting foreign investment is beginning to narrow as the competitive map shifts to quality.

Beyond producing sugar for domestic consumption, the government wants to turn sugarcane waste into ethanol to fuel its biofuel ambitions.  

Presidential special advisor for labor and workers' welfare Said Iqbal said he believes the actual number of workers affected by layoffs is higher than the official figures reported by the Manpower Ministry.

The government has imported around 770,000 barrels of Russian crude oil, according to a Bloomberg report, though the energy ministry says further verification is necessary to determine the composition and source of the fuel that makes up the so-called Indonesia blend.

Since slowing down in the fourth quarter of 2025, investment has been growing at around 7 percent, a pace well below the average seen in previous years.

US consumer inflation cooled more than expected in June as energy costs fell on a temporary easing of the US-Iran war, government data showed Tuesday, but renewed hostilities could stoke price pressures.

Cooperatives Minister Ferry Juliantono stated that the move is part of the broader efforts to scale up cooperatives to be on par with state-owned enterprises (SOEs) or private businesses.   

Bank lending to micro, small and medium enterprises (MSME) remains sluggish despite multiple policy efforts to invigorate the segment. Analysts blame weak consumer spending power and the risky credit profile of many small businesses.  

The directorate general of highway construction at the Public Works Ministry stated that it received a proposal to postpone new road construction for next year because of the limited available budget. 

Investors continue to face overlapping procedures involving multiple ministries and regional governments, which create uncertainty over land rights, permits and environmental approvals, according to the Indonesian Industrial Estate Association (HKI).  

Central bank indexes measuring consumer confidence and retail sales both dipped in June, pointing to ongoing weakness in household spending as a key pillar of Indonesia’s economy.

Indonesia has completed the first half of 2026 with strong growth in tax revenue but the government expects the full year to conclude with a Rp 47 trillion (US$2.6 billion) shortfall.