Bank Indonesia (BI) has left its benchmark interest rate unchanged as the United States-Israel war on Iran puts pressure on the rupiah, prompting the central bank to respond with forex market intervention and tighter foreign exchange controls.

Analysts warned that many potential beneficiaries of subsidized housing programs work in the informal sector, with little job and income stability.

The government says this year’s fiscal deficit may temporarily exceed the legal limit for the sake of maintaining economic growth should oil prices remain elevated for a prolonged period as the US-Israeli war on Iran rages on.

Prabowo said he has no plan to revise Indonesia's legally mandated deficit cap of 3 percent of GDP "unless there's a very big emergency like COVID." 

To prevent power outages, Energy and Mineral Resources Minister Bahlil Lahadalia said that closures would be carried out gradually.

The president asked Danantara to deliver a 5 percent return of assets in the near term, or around US$50 billion, to the state budget.

Friderica Widyasari Dewi has been formally appointed as OJK chair, alongside several other leaders, in an accelerated selection process to restore market certainty amid the Mideast war, according to the government.

As non-nickel EV batteries gain ground globally, the strategy of developing nickel-based batteries is reaching a critical juncture.

Finance Minister Purbaya Yudhi Sadewa says the worst-case scenario of domestic crude averaging US$92 per barrel throughout the year could force the government to reduce fuel subsidies or cut spending elsewhere, such as on the free meals program.

First introduced in 2023, the previous conversion scheme offered buyers a Rp 7 million subsidy for new electric motorcycle purchases and a Rp 10 million subsidy to convert conventional two-wheelers into electric ones.    

The Communications and Digital Ministry has issued a stern warning to the owner of Facebook and Instagram after finding the company’s compliance with Indonesian content moderation rules to be low when compared to other major digital platforms operating in the country.

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.

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 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.  

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 coal price cap for power plants is set lower than that for cement factories and mineral smelters, leaving them with the lowest priority among suppliers.

Uncertainty surrounds the rollout of the Red and White Cooperatives (KDMP) program as village cooperative managers grapple with changing regulations and unclear funding.  

Industry players warn that a push to diversify investment in Indonesia’s minerals sector under the Agreement on Reciprocal Trade (ART) signed with the United States last week must not disrupt the nickel ecosystem.

Following the expiry of the Feb. 24 implementation deadline, the government is preparing to assess the EU's compliance with a 2025 WTO dispute ruling over its discriminatory policies against Indonesian palm oil.

"Any Country that wants to 'play games' with the ridiculous supreme court decision, especially those that have 'Ripped Off' the USA for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to," Trump wrote on social media.

CK Hutchison objected Tuesday to the takeover, which it called "unlawful" and said raises "serious risks to the operations, health and safety" at terminals."

The spat between Asia's top two economies was sparked by comments by Prime Minister Sanae Takaichi in November that Japan could intervene militarily in any attack on self-ruled Taiwan.

The new tariffs, initially set at 10 percent, are justified as a means "to deal with the large and serious United States balance-of-payments deficits," according to a White House released Friday.

Local businesses has slammed the plan and urged the government to scrap the proposal, arguing that domestic manufacturers are fully capable of meeting the demand.

The court ruled six to three on Friday that Trump does not have the authority to impose tariffs under a 1977 law he has relied on to impose sudden levies on individual countries, upending global trade.

The government has signaled that it will refrain for now from any decisive follow-up to its new bilateral trade deal with the United States after a US Supreme Court ruling raised questions over the legality of US tariff policies.

One of the first concrete reactions among Asian nations to the decision, it follows Trump's move on Saturday to levy a temporary tariff of 15 percent, the maximum allowed by law, on US imports from all countries, following the court's rejection.