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View all search resultsThe 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.
President Prabowo Subianto has claimed that Indonesia maintains its long-standing “free and active” foreign policy, underscoring that Jakarta will continue to avoid aligning with any country or bloc despite rising geopolitical tensions, in his first public statement since the US-Israel war on Iran began on Feb. 28.
Indonesia claims its offer to mediate in the United States-Israel war on Iran is being supported by fellow Muslim-majority countries, as its troops are being put high alert at home amid disruptions in the Middle East.
Indonesia’s foreign policy has undergone major changes since President Prabowo Subianto took office in October 2024, but no change is more dramatic than in his Middle East policy, particularly in his approach to the Palestinian-Israeli conflict.
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.
At least half a million Indonesians are stranded in the Middle East with limited options to escape, Indonesia’s Foreign Ministry confirmed on Monday, as the United States-Israeli war against Iran spread out across the region on its third day.
Indonesia’s much-celebrated breakthrough in lowering United States tariffs is already losing its shine. Just one day after the Agreement on Reciprocal Trade (ART) was sealed, securing a headline tariff cut to 19 percent, the US Supreme Court ruled that President Donald Trump’s earlier tariff regime was unlawful. The question now is not how deep the cut appears on paper, but whether Indonesia has genuinely strengthened its bargaining position or is merely navigating an increasingly unpredictable trade landscape.
In the wake of the United States-Israeli war on Iran, markets are shaken and hundreds of thousands of Indonesians in the Middle East are left fearing an escalating war during the Islamic holy month of Ramadan.
President Prabowo Subianto has arrived in Abu Dhabi to bolster bilateral ties with the United Arab Emirates and advance Jakarta’s regional diplomacy, marking the fourth stop of his overseas tour during which Gaza has often emerged as a central issue.
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