Month: September 2026

The Ministry of Industry (Kemenperin) has responded to the latest S&P Global report showing that Indonesia’s manufacturing Purchasing Managers’ Index (PMI) fell from 50.0 in May to 46.9 in June, signaling a return to contraction. According to Ministry of Industry spokesperson Febri Hendri Antoni Arief, the decline was driven by weakening demand in both the domestic and export markets, leading to lower production activity, reduced raw material purchases, and slower hiring. At the same time, manufacturers faced rising production costs due to higher raw material prices and a weakening rupiah, pushing input price inflation to its second-highest level since the PMI survey began in 2011.

“We need to view this situation as a challenge that must be addressed by strengthening policies to enhance the competitiveness of the national manufacturing sector,” Febri said in a written statement on Wednesday (July 1, 2026).

According to Febri, the decline in the PMI was primarily caused by weaker demand and rising production costs. Therefore, the government’s immediate priority is to ensure that strategic policies are implemented effectively to ease the burden on manufacturers and support a recovery in industrial activity. One policy expected to deliver a significant impact is the implementation of the Specific Natural Gas Price (HGBT) program. The program is considered a key instrument for reducing energy costs in industries that rely on natural gas as a raw material or primary energy source.

“This policy has been well received by industry players and has proven effective in improving production efficiency while maintaining the competitiveness of Indonesian-manufactured products. Therefore, the implementation of HGBT needs to be further strengthened so that its benefits can be fully realized by all eligible industries,” Febri said.

On Monday (June 29), the government decided to reduce the price of liquefied natural gas (LNG) for industrial users to US$13 per MMBtu from the previous range of around US$20-23 per MMBtu. The measure is intended to strengthen the competitiveness of Indonesia’s manufacturing sector and help prevent layoffs.

“The reduction in industrial gas prices resulting from LNG regasification is a breath of fresh air for manufacturers and one of the measures that can help return the Manufacturing PMI to expansion territory in the coming months,” Febri said.

He also stressed that protecting the domestic industry has become increasingly important as global economic challenges intensify. According to him, such protection is essential not only for ensuring business continuity but also for safeguarding jobs, maintaining employment, and minimizing the risk of layoffs.

“In a situation where, competing countries continue to pursue expansionary policies, the government will not remain idle. Through close coordination and collaboration across ministries and government agencies, we will continue to create a conducive business environment,” he said.

Febri added that these efforts are aimed at strengthening Indonesia’s industrial competitiveness and expanding opportunities in both domestic and export markets. In addition to the HGBT program and measures to protect domestic industries, the Ministry of Industry is accelerating several strategic initiatives, including increasing the use of locally made products, facilitating manufacturing investment, protecting the domestic market from unfair trade practices, and expanding exports to non-traditional markets. Despite the contraction in June, the ministry noted that the S&P Global survey showed stronger business optimism among manufacturers for the next 12 months compared with the previous month, supported by expectations of easing cost pressures and improving market demand.

June 30, 2026, detikFinance

(https://finance.detik.com/industri/d-8555392/pmi-manufaktur-ri-masuk-zona-merah-kemenperin-ungkap-penyebabnya)

PT Wiraraja Indonesia and Polythene UK Ltd have officially signed a Joint Venture Agreement worth approximately £50 million (around IDR 1.17 trillion), marking a significant milestone in Indonesia–United Kingdom economic cooperation in the sustainable manufacturing sector. The partnership is expected to strengthen bilateral investment ties while supporting technology transfer and the development of higher-value-added industries in Indonesia.

The agreement follows a series of business visits by PT Wiraraja Indonesia to the United Kingdom that began on June 23, 2026. During the visit, the company held discussions with several British manufacturing firms to explore strategic collaboration opportunities, particularly in sustainable industrial development and long-term investment projects in Indonesia.

The process leading to the signing was facilitated by the Indonesian Embassy in London, the Indonesian Investment Promotion Center (IIPC) London, and the Ministry of Investment and Downstream Industry/BKPM. The collaboration reflects the Indonesian government’s continued efforts to attract quality foreign direct investment while strengthening economic partnerships with strategic international partners.

Indonesian Ambassador to the United Kingdom, Ireland, and the International Maritime Organization (IMO), Desra Percaya, said the agreement demonstrates the growing confidence between businesses in both countries and highlights the strong foundation of bilateral economic relations.

“This signing reflects the growing trust between Indonesian and British businesses and a shared commitment to building a long-term partnership that adds value to both countries,” Desra said in a statement on Tuesday (June 30, 2026).

According to the Indonesian Embassy, the joint venture is expected to generate benefits beyond capital investment. The collaboration will encourage the exchange of technology and expertise, strengthen industrial capabilities, and support the development of more competitive and sustainable manufacturing activities in Indonesia. The investment is also expected to contribute to job creation and improve the country’s industrial value chain through the production of higher-value-added products.

The agreement also represents a concrete outcome of the UK–Indonesia New Strategic Partnership, which aims to deepen bilateral cooperation across trade, investment, and sustainable economic development. As both countries continue to expand their economic engagement, partnerships between private sector companies are expected to play an increasingly important role in strengthening industrial supply chains and promoting innovation.

The Indonesian government reaffirmed its commitment to facilitating investment and business cooperation between Indonesian and British companies through investment promotion, policy support, and institutional collaboration. By encouraging partnerships in priority sectors, the government hopes to attract more high-quality investments, accelerate industrial transformation, and further strengthen the long-term economic relationship between Indonesia and the United Kingdom.

June 30, 2026, detikFinance(https://finance.detik.com/industri/d-8554094/ri-inggris-teken-kerja-sama-manufaktur-rp-1-17-t)

MSCI has maintained Indonesia’s status as an emerging market in its 2026 Global Market Accessibility Review, although the global index provider downgraded its assessment of one key aspect of the country’s capital market accessibility. In the report released on Friday (June 19, 2026), MSCI lowered Indonesia’s rating for the Information Flow criterion from positive (+) to negative (-), citing persistent concerns over market transparency and investment viability. Of the 18 market accessibility criteria assessed, only Information Flow and Foreign Exchange Market Liberalization received negative ratings.

“Information Flow: + to -. Issues related to investment viability persist due to limited transparency in shareholding structures and coordinated trading behavior that disrupt fair price formation. Detailed stock market information is not always disclosed in English,” MSCI said in the report.

MSCI identified several areas requiring improvement. Information on listed companies is not always readily available in English, limiting equal access for foreign investors. The report also noted constraints on foreign exchange transactions due to the lack of an efficient offshore currency market and restrictions in the domestic forex market. In addition, foreign investors are not permitted to access overdraft facilities. MSCI also highlighted restrictions on share transfers, limited stock lending of up to 90 days, and constraints on short-selling activities. Despite these concerns, Indonesia performed well across the majority of the assessment. MSCI said the official results of its 2026 Annual Market Classification Review, which will determine whether Indonesia retains its emerging market status, will be announced on June 23.

The Financial Services Authority (OJK) said the review indicates that Indonesia’s overall market accessibility remains strong. OJK Chief Executive for Capital Market, Financial Derivatives, and Carbon Exchange Supervision Hasan Fawzi said 10 of the 18 assessment criteria received the highest rating of double positive (++), while six received a positive (+) rating. Only Information Flow and Foreign Exchange Market Liberalization were rated negative.

“The Information Flow and Foreign Exchange Market Liberalization criteria received a negative (-) rating, indicating areas that require further improvement,” Hasan said in a written statement.

Hasan said the assessment reflects Indonesia’s ongoing capital market reform efforts. He added that MSCI had acknowledged improvements introduced by the country’s self-regulatory organizations (SROs), including reforms related to market infrastructure and foreign exchange transactions.

“As a follow-up, we continue to coordinate intensively within OJK and with relevant authorities, including Bank Indonesia, to ensure continuous improvement while prioritizing risk mitigation, good governance, and alignment with national macroprudential policies to safeguard market stability,” he said.

According to Hasan, the reforms include improving share ownership data, strengthening information disclosure, developing a beneficial ownership reporting framework, and enhancing market surveillance and trade oversight. He added that these initiatives have also been positively recognized by other global index providers, including FTSE Russell.

Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik welcomed MSCI’s assessment, describing it as valuable feedback for the exchange and other self-regulatory organizations to further strengthen the domestic capital market.

“We appreciate the feedback that has been provided. It has also been part of our ongoing discussions, and we will continue making improvements. Based on today’s assessment, we remain optimistic that Indonesia will continue to be classified as an emerging market,” Jeffrey told reporters at the IDX Building in Central Jakarta.

June 20, 2026, detikFinance

(https://finance.detik.com/bursa-dan-valas/d-8539324/msci-nilai-ri-emerging-market-tapi-dengan-catatan-tajam-soal-bursa-saham)

Finance Minister Purbaya Yudhi Sadewa is on a working visit to China to strengthen development financing and expand Indonesia’s investor base ahead of the government’s planned issuance of yuan-denominated Panda Bonds in July.

As part of the visit, Purbaya held a bilateral meeting with Chinese Finance Minister Lan Fo’an at the Ministry of Finance in Beijing on Wednesday (June 17, 2026). The meeting is part of Indonesia’s strategy to diversify financing sources, deepen economic cooperation with strategic partners, and strengthen investor confidence. Purbaya said the visit was part of the government’s long-term financing strategy, emphasizing that Indonesia continues to implement a disciplined and sustainable approach to meeting its development financing needs.

“This is part of a plan that has been formulated long before. The government continues to implement its financing strategy in a measured, disciplined, and long-term manner,” he said.

He also reaffirmed Indonesia’s strong economic fundamentals, citing a manageable debt-to-GDP ratio, a budget deficit within prudent limits, and resilient economic growth. According to Purbaya, investor confidence remains strong, as reflected in sustained demand for Indonesian government securities and stable macroeconomic conditions despite global uncertainty.

Following the meeting with the Chinese finance minister, Purbaya met with the leadership of the Asian Infrastructure Investment Bank (AIIB) in Beijing, where Indonesia secured a funding commitment of approximately US$17 billion for national development projects during the 2025–2029 period. The financing, which forms part of the Multi-Year Rolling Pipeline agreed with the AIIB, will support the implementation of key infrastructure and development projects over the next several years.

“Most importantly, we have successfully secured approximately US$17 billion in funding for development projects in Indonesia between 2025 and 2029. This represents a significant contribution to financing development projects in Indonesia,” Purbaya said in a press statement after the meeting.

In addition to the financing commitment, the AIIB expressed interest in establishing a representative office in Jakarta to strengthen cooperation and improve coordination in implementing AIIB-funded projects.

“The AIIB is also interested in establishing a branch office in Jakarta. We certainly welcome this initiative, and I hope the office will be operational by June next year,” Purbaya said.

The planned office is expected to further strengthen the strategic partnership between Indonesia and the AIIB while facilitating the implementation of future development programs. On the same occasion, Purbaya said the AIIB continues to maintain a high level of confidence in Indonesia’s fiscal condition.

During his visit, Purbaya is also scheduled to meet with 15 institutional investors. Five of them are among China’s largest fund managers, including Agriculture Bank of China, Zhong Ou Asset Management, and ICBC Wealth Management, as part of the government’s efforts to broaden Indonesia’s global investor base.

June 18, 2026, CNBC Indonesia (https://www.cnbcindonesia.com/news/20260618075917-4-743548/purbaya-kunker-ke-china-ini-hasil-pertemuannya-dengan-menkeu–aiib)

Government efforts to strengthen gas infrastructure have attracted further investment in Indonesia’s Special Economic Zones (SEZs). One such investor is PT Unilever Oleochemical Indonesia (UOI), which recently inaugurated the expansion of its production facility in the Sei Mangkei SEZ, Simalungun Regency, North Sumatra, on Wednesday, August 26, 2026. The expansion represents an investment of US$155 million, or approximately IDR 2.59 trillion. The facility produces fatty alcohol, a key raw material for the oleochemical industry that is used in a range of everyday consumer products.

“UOI’s expansion demonstrates that the Sei Mangkei SEZ has developed beyond being merely an investment location; it has become an industrial ecosystem that contributes to both regional and national economic growth,” said Rizal Edwin Manansang, Acting Secretary-General of the National SEZ Council, in a written statement on Thursday, August 27, 2026.

UOI is one of the anchor investors in the Sei Mangkei SEZ. As of 2026, the company’s cumulative investment in the area had reached approximately IDR 9.31 trillion. During the first half of 2026, UOI recorded exports of around IDR 7.14 trillion, accounting for more than 50% of total exports from businesses operating in the Sei Mangkei SEZ, which reached IDR 13.78 trillion during the same period.

UOI’s products, including fatty acids, glycerin, and soap noodles, have reached markets in 42 countries, including China, South Korea, and France. The company’s export performance highlights the strategic role of the Sei Mangkei SEZ in supporting Indonesia’s downstream industrialization and integration into global supply chains.

The National SEZ Council stated that the government would continue to foster a conducive investment climate by ensuring legal certainty, infrastructure support, and business convenience for investors operating in SEZs. Deputy Minister of Energy and Mineral Resources Yuliot Tanjung added that downstream industrial development must be supported by reliable infrastructure and sufficient energy supplies to improve regional industrial competitiveness. One of the government’s supporting initiatives is the planned expansion of the Dumai–Sei Mangkei gas pipeline network, with an estimated investment of approximately IDR 3.5 trillion.

“With adequate gas and electricity supplies, sufficient raw materials, and a strategic location, we can strengthen our competitiveness in the global market,” Yuliot said.

In addition to gas infrastructure, the government is continuing to increase electricity availability in North Sumatra through the development of renewable energy projects. Strengthening energy infrastructure is expected to support industrial operations and enhance the competitiveness of the Sei Mangkei SEZ as part of the global supply chain.

The UOI facility expansion follows the company’s 2024 groundbreaking for the KernelMax Project. The development is intended to increase production capacity, promote the downstream processing of domestic resources, and strengthen Unilever’s manufacturing capabilities in Indonesia. As of 2026, the Sei Mangkei SEZ had recorded cumulative investment of approximately IDR 33.15 trillion, involving 29 business entities and employing 16,191 workers.

August 27, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20260827093545-4-762619/ri-bangun-jargas-produsen-oleokimia-tambah-investasi-rp259-t-di-kek)

Bird’s nests continue to generate significant export value for Indonesia, particularly in the Chinese market. During the first half of 2026, Indonesia’s bird’s nest exports to China reached US$172.15 million, equivalent to approximately IDR 3 trillion at an exchange rate of IDR 17,705 per US dollar. The figure is based on the latest data released by Statistics Indonesia (BPS).

In terms of volume, Indonesia exported approximately 186.8 tons of bird’s nests to China during the period. This highlights the strong and sustained demand for Indonesian bird’s nests, which are widely valued in China as a premium food product and are commonly used in traditional culinary and health-related practices.

According to Antara News Agency on Tuesday, August 25, 2026, the export value of Indonesian bird’s nests to China declined by around 4% compared with the same period last year. Nevertheless, China remained the largest importer of Indonesian bird’s nests, accounting for approximately 80% of Indonesia’s total bird’s nest exports. This dominant share underlines China’s strategic importance as the primary destination market for the commodity.

Bird’s nests have been among Indonesia’s leading export commodities to China for many years. The sector not only contributes to foreign exchange earnings but also supports businesses and communities involved in swallow farming, processing, packaging, quality control, and export logistics across various regions of Indonesia.

Trade relations between Indonesia and China in the bird’s nest sector continue to strengthen through cooperation between government institutions and industry stakeholders. One example was the China-Indonesia Bird’s Nest Trade Summit Forum, organized by Indonesia’s Ministry of Trade in collaboration with the China Agricultural Wholesale Markets Association (CAWA) in April 2026. The forum served as an opportunity to promote Indonesian bird’s nests, strengthen market access, discuss quality standards, and encourage closer business cooperation between exporters and buyers from both countries.

Export activity has also continued at the regional level. Most recently, the Indonesian Quarantine Agency (Barantin) officially certified the export of swallow’s nests from Banten Province on Friday, August 21, 2026. The shipment was valued at IDR 38.7 billion, demonstrating the growing contribution of regional producers to Indonesia’s export performance.

Besides mainland China, other important destinations for Indonesian swallow’s nest exports include the Hong Kong Special Administrative Region, which recorded an import value of US$15.7 million during the first half of 2026. Singapore also remained a notable market, with Indonesian swallow’s nest exports valued at approximately US$10 million.

Outside Asia, Indonesia also exports swallow’s nests to the United States, indicating broader international market potential. With continued improvements in product quality, traceability, quarantine certification, and market diversification, Indonesia is expected to maintain its position as one of the world’s key suppliers of high-quality bird’s nests.

August 25, 2026, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8633752/china-jadi-pasar-terbesar-sarang-walet-ri-ekspornya-tembus-rp-3-t)

The Indonesian government has launched a major solar power development program with a planned total capacity of 100 gigawatt-peak (GWp). The nationwide initiative, which will be developed across multiple regions, is estimated to require investment of up to US$73 billion, or more than IDR 1,140 trillion.

Energy and Mineral Resources Minister Bahlil Lahadalia said the project would be implemented on a massive scale to maximize Indonesia’s year-round solar energy potential. The program is also expected to reduce reliance on diesel-fired power plants and lower fuel consumption for electricity generation.

“The President’s plan to develop 100 GW of solar power will require approximately US$73 billion, or more than IDR 1,140 trillion,” Bahlil said during the inauguration of the 100 GWp Solar Power Plant program in Jembrana Regency, Bali, on Wednesday, August 26, 2026. “From this project, we can achieve annual subsidy savings of IDR 73.9 trillion.”

Beyond fiscal efficiency, the program is expected to create substantial employment opportunities. The government estimates that the construction and development of solar infrastructure could generate approximately 5.52 million jobs across Indonesia.

“This could create around 5.52 million jobs. Today, we are marking the groundbreaking of a 5.3 GW project, including more than 1,000 MW in Bali, supported by battery storage,” Bahlil said.

The 100 GWp solar program is also projected to reduce greenhouse gas emissions by up to 140 million tons of carbon dioxide annually. According to Bahlil, the resulting carbon economic value could contribute an additional IDR 6.31 trillion to state revenue each year. President Prabowo Subianto has challenged the energy sector to accelerate the project’s completion beyond the original three-year target. He expressed confidence that the 100 GWp capacity could be achieved in less than three years, and potentially within two years.

“I believe that in less than three years, we will reach 100 GW. Right?” Prabowo said at the event.

He emphasized that the project is strategically important for strengthening Indonesia’s energy independence, particularly by reducing dependence on imported crude oil and liquefied petroleum gas (LPG). Prabowo also compared the planned solar capacity with Indonesia’s current total installed electricity capacity, which stands at approximately 88 GW from various energy sources.

“Indonesia’s total electricity capacity is currently 88 GW. We will build 100 GW, and we are serious about this,” he said. “Our target is 100 GW in three years.”

Prabowo said the government must pursue tangible progress to improve public welfare amid global energy challenges. He cited the accelerated achievement of food self-sufficiency targets as a reason for optimism that the energy program could also be completed ahead of schedule.

According to data from the Ministry of Energy and Mineral Resources, the initial phase covers 14 strategic projects with a combined capacity of 5,216 MWp. Projects ready for tender include the Jatiluhur Floating Solar Power Plant (1,688 MWp), Cirata Floating Solar Power Plant (1,250 MWp), Jatigede Floating Solar Power Plant (636 MWp), Madura Cluster Solar Power Plant and Battery Energy Storage System (605 MWp), and Gilimanuk Solar Power Plant in Bali (300 MWp). Meanwhile, projects under construction or at the groundbreaking stage include solar power plants in Banyuwangi, Pasuruan, Gajah Mungkur, Karangkates, Saguling, Tembesi, Sembur Village, and Rengit Island.

August 26, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20260826083257-4-762212/ri-bangun-plts-100-giga-watt-nilainya-tembus-rp1140-triliun)

Bird’s nests continue to generate significant export value for Indonesia, particularly in the Chinese market. During the first half of 2026, Indonesia’s bird’s nest exports to China reached US$172.15 million, equivalent to approximately IDR 3 trillion at an exchange rate of IDR 17,705 per US dollar. The figure is based on the latest data released by Statistics Indonesia (BPS).

In terms of volume, Indonesia exported approximately 186.8 tons of bird’s nests to China during the period. This highlights the strong and sustained demand for Indonesian bird’s nests, which are widely valued in China as a premium food product and are commonly used in traditional culinary and health-related practices.

According to Antara News Agency on Tuesday, August 25, 2026, the export value of Indonesian bird’s nests to China declined by around 4% compared with the same period last year. Nevertheless, China remained the largest importer of Indonesian bird’s nests, accounting for approximately 80% of Indonesia’s total bird’s nest exports. This dominant share underlines China’s strategic importance as the primary destination market for the commodity.

Bird’s nests have been among Indonesia’s leading export commodities to China for many years. The sector not only contributes to foreign exchange earnings but also supports businesses and communities involved in swallow farming, processing, packaging, quality control, and export logistics across various regions of Indonesia.

Trade relations between Indonesia and China in the bird’s nest sector continue to strengthen through cooperation between government institutions and industry stakeholders. One example was the China-Indonesia Bird’s Nest Trade Summit Forum, organized by Indonesia’s Ministry of Trade in collaboration with the China Agricultural Wholesale Markets Association (CAWA) in April 2026. The forum served as an opportunity to promote Indonesian bird’s nests, strengthen market access, discuss quality standards, and encourage closer business cooperation between exporters and buyers from both countries.

Export activity has also continued at the regional level. Most recently, the Indonesian Quarantine Agency (Barantin) officially certified the export of swallow’s nests from Banten Province on Friday, August 21, 2026. The shipment was valued at IDR 38.7 billion, demonstrating the growing contribution of regional producers to Indonesia’s export performance.

Besides mainland China, other important destinations for Indonesian swallow’s nest exports include the Hong Kong Special Administrative Region, which recorded an import value of US$15.7 million during the first half of 2026. Singapore also remained a notable market, with Indonesian swallow’s nest exports valued at approximately US$10 million.

Outside Asia, Indonesia also exports swallow’s nests to the United States, indicating broader international market potential. With continued improvements in product quality, traceability, quarantine certification, and market diversification, Indonesia is expected to maintain its position as one of the world’s key suppliers of high-quality bird’s nests.

August 25, 2026, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8633752/china-jadi-pasar-terbesar-sarang-walet-ri-ekspornya-tembus-rp-3-t)