Plastic producers say the pressure is most acute upstream, where tight raw material supply and surging prices are driving up costs, forcing manufacturers to absorb them while trying to keep production running.

Experts warn of rising price pressure going forward, as fuel price hikes will only fully reflect in May data.

While manufacturing exports continued to expand, rising 3.96 percent in the first quarter and supported by strong nickel shipments, the gains were not enough to offset declines in mining exports caused by weaker coal shipments.

Output declined in April at the fastest pace in nearly a year, with firms pointing to higher input prices, material shortages and weaker purchasing power due to the ongoing US-Israeli war on Iran.

The Industrial Confidence Index (IKI), a monthly gauge of factory activity published by on Wednesday, came in at 51.75 last month, easing from March’s 51.86 but still above the 50 threshold that separates expansion from contraction.

The top US and Chinese economic officials held "candid" talks on Thursday ahead of a meeting set for May between President Donald Trump and President Xi Jinping, with both sides raising complaints about the other's trade policies, the US Treasury and Chinese state media said.

Brussels has blacklisted the Karimun oil terminal over its alleged use in Russian oil shipments but says EU sanctions create no obligations for non-EU entities operating outside the Union. 

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.