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.

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