"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.

Workers' associations have urged action to address the issue of “disguised employment” faced by some gig workers in Indonesia, while a government official says a dedicated bill to regulate the growing gig economy is underway.

Asian equities jumped Thursday after a three-day rout sparked by the Middle East war, but concerns about an extended conflict helped oil extend gains, while analysts warned of more volatility ahead.

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.

Civil society and industry groups warn that the agreement on reciprocal trade (ART) could weaken local control over Indonesian data, erode publisher rights and tilt the digital economy further toward US tech giants.

The petrochemical company will reduce operational run rates at its plants as it monitors developments in the conflict, predominantly involving Iran, Israel and the United States.

Asian stocks tanked on Wednesday, with a record-breaking market crash in Seoul, as investors dumped crowded bets on chipmakers on worries a widening Middle East war will drive an oil shock that raises inflation and delays interest rate cuts.

The Financial Services Authority (OJK) has reaffirmed its commitment to swift capital market reforms aimed at addressing transparency concerns around Indonesian stocks flagged by global index compiler MSCI.  

Purbaya said expenditure on Indonesia's free meals program could be scaled back, saving the country about Rp 100 trillion ($6 billion).

Multiple Indonesian local media reported on Wednesday that Fitch Ratings has downgraded Indonesia's sovereign credit rating outlook to negative from stable.

The government also set holiday bonuses for ride-hailing drivers with app-based companies agreed to provide a total of Rp 220 billion this year, double the Rp 110 billion distributed last year.

The dollar rallied to a three-month high in early trading in Asia on Wednesday, with investors retreating from the euro as the growing conflict in the Middle East sparked fears of a sustained rise in energy prices.

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.

Brent crude futures LCOc1 were at $80.89 a barrel, up $3.15, or 4.1 percent, by 0745 GMT. On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7 percent higher.

The first phase is projected to have an annual production capacity of 400,000 tonnes of caustic soda and 500,000 tonnes of ethylene dichloride (EDC), with operations targeted to commence in 2027.

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.  

PT Daya Intiguna Yasa (MR.D.I.Y. Indonesia), Indonesia's largest home goods retailer, has officially opened its second flagship store at Summarecon Mall Bekasi 2 in Bekasi, West Java.

Asian airline shares remained under pressure on Tuesday as the US and Israeli war against Iran escalated, with carriers closely monitoring fuel price spikes and many seeing a surge in bookings as passengers switch from Middle Eastern airlines.

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.

Investors are closely watching developments around shipping in the crucial Strait of Hormuz which was disrupted by retaliatory Iranian attacks.

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.

Analysts do not rule out the possibility of oil prices hitting US$100 a barrel, a level last seen at the start of the war in Ukraine.

Maersk stated that the firm will continue to prioritize the Trans-Suez route once the situation stabilizes and security conditions permit again.