Federal Reserve Chair Jerome Powell closed out eight years as head of the US central bank on Wednesday with interest rates on hold, rising concern about inflation, and an announcement that he would stay on as a Fed governor for now to defend the agency's independence from Trump administration "battering."

Political analysts and regional experts said the move to leave the groups of oil-producing nations, announced on Tuesday, was more than just a dispute over OPEC oil output quotas that Gulf sources say Abu Dhabi sees as tilted against the UAE.

Protesters are set to demand an end to outsourcing and low wages, arguing that current employment practices leave workers in prolonged contractual uncertainty. President Prabowo Subianto is set to attend Jakarta's main Labor Day commemoration on Friday.

Among the key downstream projects launched on Wednesday is the development of gasoline refinery facilities in Cilacap, Central Java, and Dumai, Riau, each with a processing capacity of 62,000 barrels per day (bpd).

The government has been scrambling since earlier this month to secure supplies of naphtha, a raw material used to produce plastic, from alternative sources such as African countries, India and the United States.

State logistics agency Perum Bulog has warned of limited availability of subsidized cooking oil Minyakita in several regions, citing a lack of fresh supply from producers as a key constraint in getting the product to traditional markets.    

Compressed natural gas (CNG) feedstock, mainly methane and ethane, is more readily available domestically, potentially reducing reliance on costly imported fuels. 

Up to 80 percent of Toba Pulp Lestari’s workforce of more than a thousand employees may be affected after the government revoked its forest concession permit over environmental violations.

The government believes it can push gross domestic product growth beyond the typical 5 percent rate in the second quarter despite unfavorable external conditions.

The state asset fund is eyeing a US$30 billion renewable energy project that will export power to Singapore as well as supply the national grid, but licensing and funding issues related to a prior solar farm deal continues to cast a cloud of uncertainty among investors.

"The last time we saw similar signals was during the severe 2015 to 2016 El Nino," a meteorologist has said.

An action plan said that the EU and US would explore setting minimum prices on critical minerals, effectively preventing China or other outside powers from flooding the market with inexpensive exports.

Foreign direct investment (FDI) reached Rp 250 trillion in Q1 2026, rising 8.5 percent year-on-year, although it slightly declined compared with Rp 256 trillion in the previous quarter.

Badan Pengusahaan Batam (BP Batam) has reported an investment realization of Rp 17.4 trillion in the first quarter of 2026, marking a 102.85 percent increase year-on-year (YoY) and 68.92 percent growth quarter-on-quarter. The performance signals a strong start to the year and reinforces Batam’s position as one of Indonesia’s most dynamic investment centers.

To capitalize on the potential shift, the government plans to accelerate the development of land connectivity to stimulate tourism flows.

Prabowo met Russian President Vladimir Putin at the Kremlin last week, where they discussed strengthening strategic partnerships, including in the energy sector, cabinet secretary Teddy Indra Wijaya said in a statement.

The credit rating agency noted that there was a risk the government might substantially relax its fiscal and monetary policies to achieve President Prabowo Subianto's ambitious ​8 percent growth target.

Efforts to frame an interim trade pact, including a proposal to lower US tariffs on Indian goods to about 18 percent, have been clouded by uncertainty following a US Supreme Court ruling although negotiations are continuing.

The rupiah was the worst-performing currency in the region, depreciating 0.61 percent by market close, followed by the Philippine peso and the Thai baht, which weakened by 0.6 percent and 0.55 percent, respectively.

The Foreign Ministry has issued a counterstatement emphasizing Indonesia's adherence to international law in all maritime policies after the finance minister's backtracked suggestion referring to Iran's transit levy in the Strait of Hormuz.

Russia's invasion of Ukraine has rattled NATO and led Berlin to pour huge amounts into rebuilding its armed forces, sparking a business bonanza for weapons makers and manufacturers of dual-use goods.

Credit growth rebounded to 9.49 percent year-on-year (yoy) last month from the 9.37 percent logged in February. The latest figure, however, is still lower than the 9.96 percent yoy growth recorded in January.   

The central bank has decided to keep the BI-Rate unchanged at 4.75 percent to prevent the rupiah from spiraling ever downward amid the nearly two-month war in Iran as the currency hit a record low of Rp 17,193 per greenback on Wednesday, while experts pointed to a narrowing room for monetary policy in its aim to secure financial stability.

Beyond conventional materials, the government is encouraging the development of bioplastics derived from natural resources such as cassava and seaweed. 

Last year, the government also began issuing renminbi-denominated debt through so-called dim sum bonds, which are similar to panda bonds but are marketed mainly in Hong Kong.

The uncertainty weighed on investor sentiment, with the Indonesia Stock Exchange (IDX) Composite Index slipping 0.46 percent on Tuesday, even as major Asian markets advanced on optimism that the Iran conflict may be nearing an end.

State-owned energy firm Pertamina previously increased prices for three non-subsidized products, Pertamax Turbo, Dexlite and Pertamina Dex, by between 48 and 66 percent.