Category: Economy

Rosan Roeslani, Minister of Investment and Downstream Development and CEO of the Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI), spoke openly about investments by several South Korean giants, revealing the involvement of companies such as EcoPro, Lotte, and Posco.

Rosan said he met with these companies on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit, adding that Lotte’s completed investment is valued at US$4 billion, or approximately IDR 66.63 trillion (at an exchange rate of IDR 16,659 per US dollar).

“I happened to be attending the APEC event and met with several companies that have already invested in Indonesia, including EcoPro. I will also meet with Lotte and others later. Lotte has completed an investment worth US$4 billion,” Rosan said on the sidelines of the 2025 APEC Summit at the Agenas Room, Lahan Select Hotel, Gyeongju, South Korea, in a written statement on Friday (Oct. 31, 2025).

Rosan added that Lotte will visit Indonesia on November 6, during which discussions with Danantara will be held regarding participation in a project in Cilegon.

“In terms of chemical products, we are also discussing with Danantara the possibility of participating in Lotte’s soon-to-be-launched chemical company,” he explained.

He noted that Lotte had offered a 35 percent stake, which is currently under review.

“They offered 35 percent, but we are reviewing it because this is a very promising product, and the project is already completed. The risks are more measurable, so we can see the potential going forward. I have instructed the team to immediately review Lotte’s offer,” Rosan explained.

Rosan further stated that EcoPro is investing US$2 billion, or about IDR 33.31 trillion, and that he met with EcoPro’s leadership during his visit to Seoul, South Korea.

“EcoPro is investing approximately US$2 billion for its new expansion. We met with the chairman yesterday in Seoul and invited Danantara to participate in the ownership. I will follow up on this, as it is also an investment in the downstream EV battery sector,” he said.

He also highlighted the potential collaboration between Posco and Krakatau Steel, noting that the matter would be followed up.

“We will also pursue this potential collaboration and plan to work with Posco to explore further cooperation with Krakatau Steel,” he added.

In addition to EcoPro, Lotte, and Posco, Hyundai has also expressed interest in investing in Indonesia, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. While Airlangga did not disclose the potential investment value, he confirmed Hyundai’s interest in the EV battery sector.

“That will be discussed later, but they are ready with a specific model that requires more detailed discussions. Of course, this vehicle has a specific design and platform, and the one currently being discussed is for EVs (electric vehicles),” he explained.

October 31, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8188480/bocoran-investasi-raksasa-korea-di-ri-lotte-ecopro-hingga-posco)

The Indonesian and South Korean governments have taken initial steps to strengthen economic cooperation ahead of the 2025 Asia-Pacific Economic Cooperation (APEC) Summit, which will take place from October 31 to November 1, 2025, in Gyeongju, South Korea.

Discussions on deepening cooperation were held during a bilateral meeting between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and South Korea’s Minister of Trade, Investment, and Energy, Kim Jung Kwan, in Gyeongju on Friday (October 31, 2025).

During the meeting, Airlangga said that discussions centered on several key areas, including investment, trade, energy, digitalization, and future industrial development, with both sides reaching a number of agreements.

“South Korea is one of Indonesia’s main partners in building a competitive and sustainable economy. We want to ensure that this ongoing cooperation continues to develop in a more strategic and concrete direction,” Airlangga said in a press release on Friday.

He expressed hope that the partnership would foster inclusive and sustainable economic growth for both countries. The two sides also reaffirmed their commitment to continuously strengthening mutually beneficial cooperation and supporting sustainable economic development in the Asia-Pacific region.

To enhance bilateral economic ties, both ministers reaffirmed their commitment to strengthening the Joint Committee on Economic Cooperation (JCEC) as the primary platform for advancing collaboration between the two countries. Airlangga also announced that the third JCEC Ministerial Meeting will be held in Indonesia in the first quarter of 2026 to accelerate the implementation of previously agreed strategic projects. In addition, he emphasized the importance of expediting the implementation of the Economic Cooperation Committee under the Indonesia–Korea Comprehensive Economic Partnership Agreement (IK-CEPA).

“IK-CEPA is a vital instrument for deepening our economic partnership. Through this agreement, we aim to ensure direct benefits for industries and communities in both countries,” Airlangga said.

Concluding the meeting, Airlangga expressed confidence that cooperation between Indonesia and South Korea will continue to progress toward a comprehensive, innovative, and sustainable economic partnership.

“Economic cooperation between Indonesia and Korea not only reflects strong bilateral relations but also contributes significantly to regional economic growth. Moving forward, we will continue to strengthen this inclusive and mutually beneficial partnership,” he added.

South Korea remains one of Indonesia’s key strategic partners in strengthening bilateral economic relations. In 2024, it ranked as the seventh-largest investor in Indonesia, with around 2,000 Korean companies operating in collaboration with local partners.

October 31, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20251031103428-4-681001/ri-korsel-perkuat-kerja-sama-ekonomi-jelang-ktt-apec-2025)

Indonesia and Turkey have agreed to expand cooperation in civil aviation, paving the way for more direct flights and deeper technical collaboration between the two countries, according to a statement released on Sunday by the Transportation Ministry’s Directorate General of Civil Aviation (DGCA). Following a two-day consultation in Istanbul on Oct. 22–23, both sides signed a record of discussions and an implementing arrangement to serve as the foundation for strengthening bilateral cooperation in civil aviation.

The consultation followed up on an agreement reached between President Prabowo Subianto and President Recep Tayyip Erdoğan during the inaugural High-Level Strategic Cooperation Council (HLSC) meeting on Feb. 12 in Bogor, West Java, which included Turkey’s request to increase flight frequencies on direct routes. The two countries also agreed to expand their respective air service networks.

Indonesia will add eight new destinations to complement Jakarta and Denpasar: Medan in North Sumatra, Majalengka in West Java, Yogyakarta, Manado in North Sulawesi, Balikpapan in East Kalimantan, Kediri in East Java, Lombok in West Nusa Tenggara, and Sorong in Southwest Papua. Meanwhile, Turkey will add Izmir and Bodrum to its existing destinations — Istanbul, Ankara, and Antalya. In addition, the agreement significantly increases aviation traffic rights from 14 to 32 flights per week.

The ministry’s Director of Air Transportation, Agustinus Budi Hartono, said the agreement reflected constructive dialogue and demonstrated both countries’ strong commitment to enhancing air connectivity and broadening market access.

“This capacity increase is a strategic step toward wider connectivity between Indonesia and Turkey. The agreement also creates opportunities for airlines to explore new routes beyond Jakarta and Denpasar,” he said on Sunday.

“This agreement marks an important milestone in expanding aviation cooperation while opening greater economic opportunities for the national aviation industry. The DGCA will continue to ensure the agreement’s implementation in accordance with regulations, prioritizing safety, security, and passenger comfort,” Agustinus added.

He noted that the expansion is expected to attract more airlines to develop services to new destinations and stimulate growth in tourism, trade, and investment. Both sides also agreed to update their codeshare arrangements to allow third-country airlines to cooperate with Indonesian and Turkish carriers on connecting flights — a move expected to improve operational efficiency, expand network connectivity, and offer passengers more travel options.

Another provision in the agreement concerns the mutual use of unutilized entitlements, such as flight frequencies or aircraft seats, which can be used by the other party through commercial arrangements between airlines. These arrangements must, however, be reported to each country’s aviation authority. The mechanism provides greater flexibility for carriers to optimize market potential without waiting for future revisions to the air services agreement.

October 27, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/10/27/indonesia-turkey-ink-deal-to-expand-civil-aviation-cooperation.html)

Indonesia and Brazil agreed to strengthen bilateral relations and signed a series of cooperation agreements on Thursday as their leaders met in Jakarta, marking a significant step toward deepening economic and political ties between two of the world’s largest emerging economies.

Brazilian President Luiz Inácio Lula da Silva was welcomed with a marching band and national anthems at the presidential palace before holding talks with President Prabowo Subianto. The visit, part of Lula’s tour of Southeast Asia, underscores both nations’ commitment to expanding collaboration beyond traditional partners.

The two leaders witnessed the signing of agreements covering oil and gas development, electricity, technology, mining, and agriculture. The new pacts are seen as a strategic move to diversify economic partnerships, coming several months after U.S. President Donald Trump imposed a 19 percent tariff on imports from Indonesia under a new trade policy, and a 50 percent tariff on Brazilian products.

“How is it that two important countries in the world, such as Indonesia and Brazil, which together have a population of almost 500 million, only have a trade volume of $6 billion?” Lula said at a joint press conference after the talks. “This is not enough for Indonesia, and it is not enough for Brazil.”

President Prabowo said both governments were exploring the establishment of a free trade agreement between Indonesia and Mercosur — the South American trade bloc consisting of Brazil, Argentina, Paraguay, Bolivia, and Uruguay. “I believe this will strengthen our relations and allow both our economies, as well as those of Latin America, to grow rapidly,” he told reporters.

During the conference, Prabowo described Indonesia and Brazil as “two new economic powers that are rising,” emphasizing the need to increase trade, investment, and technology cooperation to support sustainable growth.

Brazil has sought to deepen its engagement with Southeast Asia in recent years, recognizing the region’s growing economic influence. Lula’s attendance at the upcoming Association of Southeast Asian Nations (ASEAN) Summit in Malaysia — the first ever by a Brazilian president — reflects that ambition and signals stronger interregional diplomacy.

Brazil remains one of Indonesia’s key trading partners in South America. Total trade between the two countries reached $4.3 billion from January to August 2025, according to Statistics Indonesia data. Jakarta has also intensified its economic diplomacy in Latin America, signing a trade agreement with Peru in August and joining the BRICS bloc of major emerging economies — which includes Brazil — earlier this year.

Both leaders expressed optimism that Thursday’s agreements would pave the way for a more dynamic and mutually beneficial partnership, setting the tone for broader cooperation between Southeast Asia and South America in the years ahead.

October 23, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/10/23/indonesia-brazil-strike-cooperation-deals-as-leaders-meet.html)

Finance Minister Purbaya Yudhi Sadewa has confirmed the approval of a budget for Indonesia’s purchase of Chengdu J-10 fighter jets from China, marking one of the country’s largest defense procurements to date. The deal, valued at around US$9 billion or IDR 148 trillion (exchange rate of IDR 16,500), is set for implementation next year.

“US$9 billion, if I’m not mistaken, or more. I forget the exact figure, but it’s been approved, so everything should be ready,” Purbaya said at the Directorate General of Taxes (DGT) Headquarters in Jakarta on Wednesday (10/15/2025).

Purbaya noted that while the budget allocation has been finalized, the schedule for delivery remains under the Ministry of Defense’s coordination. “We need to double-check with the Defense Ministry regarding the exact import timeline,” he added. Defense Minister Sjafrie Sjamsoeddin previously confirmed that the Indonesian Air Force (TNI AU) will receive the Chengdu J-10 jets, with the first units expected to arrive in Jakarta soon.

The Chengdu J-10, known as Vigorous Dragon, is a single-engine, medium-weight, multirole fighter aircraft developed by Chengdu Aircraft Corporation (CAC) for the People’s Liberation Army Air Force (PLAAF). Designed for air superiority and ground-attack missions, the J-10 is widely regarded as China’s counterpart to the American F-16 Fighting Falcon and is currently in service with both the PLAAF and Pakistan Air Force (PAF).

The first J-10 prototype was assembled in 1997, making its maiden flight in March 1998, and entered full service in 2006. By 2024, more than 600 units had been produced. The jet can reach a top speed of Mach 1.8 (approximately 2,327 km/h) and a maximum altitude of 18,000 meters. Its operational range extends to 1,850 km, with a combat radius of 550 km. Weighing 9,750 kg at empty and up to 19,277 kg at maximum takeoff, the J-10 is powered by the AL-31 turbojet engine from Russia’s Saturn Lyulka, offering a balance of speed and agility.

The J-10 incorporates a digital fly-by-wire control system and HOTAS (hands-on throttle and stick) configuration, enabling pilots to perform high-maneuverability combat maneuvers efficiently. Its advanced cockpit setup includes a helmet-mounted display, a wide-field head-up display, a color multifunction display, and two monochrome LCD panels.

Radar systems for the J-10 may include options such as the Chinese Type 1473, JL-10A, or foreign variants like Russia’s Phazotron Zhuk-10PD, Israel’s IAI Elta EL/M-2023, or Italy’s Galileo Avionica Grifo 2000. The aircraft supports a diverse range of air-to-air missiles, including the Chinese PL-8, PL-11, and PL-12, as well as Russian-made R-73 (AA-11 Archer) and R-77 (AA-12 Adder).

Indonesia’s decision to acquire the J-10 signals a significant step in diversifying its defense partnerships and modernizing its air fleet. The move reflects Jakarta’s commitment to strengthening its air defense capabilities amid evolving regional dynamics, as well as its broader ambition to maintain strategic balance and enhance national security through advanced military technology.

October 17, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8164479/ri-beli-jet-tempur-dari-china-rp-148-t)

(https://inet.detik.com/cyberlife/d-8163171/purbaya-setujui-pembelian-jet-tempur-chengdu-j-10-ini-speknya)

Trade Minister Budi Santoso, accompanied by Coordinating Minister for Food Affairs Zulkifli Hasan, officially opened the 40^th Trade Expo Indonesia (TEI) 2025 at ICE BSD City, Tangerang Regency, Banten, on Wednesday (10/15). The annual international event, organized by the Ministry of Trade, carries the theme “Discover Indonesia’s Excellence: Trade Beyond Boundaries.” Zulhas emphasized that the government’s trade policies are on the right track, as reflected in Indonesia’s continued positive trade performance.

“As of this month, national exports have grown by more than 7 percent compared to last year, with the trade surplus reaching US$29 billion. This is an extraordinary achievement resulting from our collective efforts. With cooperation and optimism, Indonesia will continue to strengthen its position as a competitive global economic power,” said Zulhas.

Budi stated that TEI 2025 features 1,619 participants and 8,045 registered buyers from 130 countries. The exhibition is divided into three main zones: food and agriculture, manufactured products, and services and lifestyle, with a transaction target of US$16.5 billion.

“TEI is a concrete manifestation of President Jokowi’s Asta Cita vision to strengthen downstream industries and expand Indonesia’s role in the global supply chain toward a Golden Indonesia,” Budi noted.

In addition to the main exhibition, TEI 2025 presents business matching sessions, counseling, and business forums. The event is also synergized with the Pangan Nusa Exhibition in Hall 9 of ICE BSD City, which promotes Indonesia’s culinary diversity and regional food potential. “This exhibition showcases the creativity and quality of national culinary entrepreneurs, opening global collaboration opportunities,” Budi added.

Budi expressed appreciation to all partners for their support, including the Ministry of Foreign Affairs, Indonesian representatives abroad, friendly nations, Kadin, and international chambers of commerce for helping attract buyers and expand Indonesia’s global trade network. “Through our collective spirit of cooperation, Indonesia will continue to enhance its global competitiveness for national welfare and shared prosperity,” he said.

During the opening ceremony, Budi presented the Primaniyarta Award to outstanding exporters and regional heads for boosting export performance and brand recognition, and the Primaduta Award to loyal buyers and export partners. Recognition was also given to Indonesian representatives abroad for their contribution to non-oil and gas export growth.

Also in attendance were Minister of MSMEs Maman Abdurrahman, Minister of Villages and Development of Disadvantaged Regions Yandri Susanto, Banten Governor Andra Soni, and Kadin Chairman Anindya Bakrie. International guests included Timor-Leste’s Deputy Prime Minister and Coordinating Minister for Economic Affairs Francisco Kalbuadi Lay, Yemen’s Deputy Minister of Trade and Industry Salem Mohamed Ahmed Salman, and Egypt’s Chairman of the General Authority for Investment and Free Zones Hossam Heiba, along with Indonesian ambassadors and representatives from friendly nations.

October 15, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20251015191314-4-676196/trade-expo-indonesia-2025-hadirkan-keunggulan-produk-tanah-air)

Minister of Industry Agus Gumiwang Kartasasmita invited Xiaomi to expand its investment in Indonesia, including building an electric car ecosystem. He also directly praised Xiaomi’s investment and contribution to building the smartphone and television industry ecosystem in Indonesia. This was revealed after a bilateral meeting with Jon Dove, Associate Government Affairs Director of Xiaomi Communications Co., Ltd., in Shanghai, China, Friday (10/10/2025).

The meeting was also attended by Eko S.A. Cahyanto, Secretary General of the Ministry of Industry; Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) Industry; and representatives from PT Xiaomi Technology Indonesia, namely Zhao Wentao (Managing Director) and Tel Lee (Product Certification Manager). Agus stated that the Ministry of Industry continues to strive to encourage cooperation with global industry players, including those from China, to strengthen investment flows into Indonesia and establish Indonesia as a manufacturing production and export base. According to him, this effort will accelerate the strengthening of the domestic industrial structure and spur national economic growth.

“Xiaomi has become a vital part of strengthening the national electronics industry supply chain. The Indonesian government greatly appreciates Xiaomi’s commitment to continuously investing and developing its product line in Indonesia,” Agus said in an official statement on Monday (10/13/2025).

Minister of Industry Urges Xiaomi to Build Electric Cars: The Indonesian government, he said, supports Xiaomi’s plan to produce tablets locally in Indonesia, particularly for models already present in the domestic market. Agus then asked Xiaomi to submit its business plan in Indonesia for the coming years. This includes encouraging Xiaomi to strengthen its electric car industrial base in Indonesia.

“We encourage Xiaomi to immediately submit a detailed business plan for the next five years, in order to realize its new investment plans in Indonesia. This plan is expected to include a strategy for developing production facilities, both independently and in collaboration with local partners,” he added.

“We are aware that Xiaomi has launched a high-performance electric vehicle, the Xiaomi SU7. We encourage Xiaomi to explore investment in the environmentally friendly vehicle sector in Indonesia. This will enrich vehicle choices for Indonesian consumers while strengthening the national green industry ecosystem,” said Agus.

He stated that the Chinese multinational technology company, founded in 2010 and based in Beijing, has invested IDR 3 trillion in Indonesia. This investment is being used to produce smartphones, tablets, and televisions.

“This company is now one of the leading smartphone brands in the national market, with a market share of 21% in the second quarter of 2025. Xiaomi’s investment contributes significantly to job creation, technology transfer, and strengthening the competitiveness of the national electronics industry. This aligns with the Making Indonesia 4.0 vision, which places the electronics sector as a top priority,” Agus said.

October 13, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20251013164939-4-675399/menperin-minta-xiaomi-investasi-mobil-listrik-di-ri)

The 2025 Indonesia MotoGP at the Mandalika International Circuit in West Nusa Tenggara (NTB) recorded 140,324 spectators, a 15.7 percent increase from last year, marking the highest attendance since the event was first held in 2022. Maya Watono, president director of state-owned tourism holding company InJourney, said this year’s MotoGP was the best so far in terms of service quality, infrastructure readiness, and local community involvement.

“Hotel occupancy in Mandalika reached 100 percent. This was supported by close coordination with partners to add extra flights to meet high visitor demand,” she said in a statement on Sunday.

According to data from the NTB Tourism Agency, hotel occupancy across Lombok Island averaged 93 percent during the race period, with Mataram City at 90 percent and Mandalika at 100 percent. To accommodate the surge in travelers, Lombok International Airport operated 44 additional flights. Local micro, small, and medium enterprises (MSMEs) also benefited from the event, with the number of permitted vendors inside the circuit area nearly doubling from last year. Overall, the NTB provincial government estimated total economic turnover, including accommodation, transportation, culinary businesses, and local creative products during the race weekend at around IDR 4.8 trillion (US$289 million).

Susiwijono Moegiarso, secretary of the coordinating economy minister, said the success of the 2025 Indonesia MotoGP demonstrated the effectiveness of the Mandalika Special Economic Zone (SEZ) as a catalyst for regional economic growth.

“President Prabowo Subianto has requested direct reports on the development of all SEZs and their positive impacts, particularly Mandalika, which has significantly contributed to regional economic growth,” said Susiwijono, who also serves as chairman of the National Council for SEZs.

The Mandalika SEZ has recorded IDR 5.7 trillion in realized investment, creating 19,010 jobs and hosting 28 active businesses within the area. Ahmad Fajar, director of finance and risk management at the Indonesia Tourism Development Corporation (ITDC), which oversees the development of the Mandalika complex, said the development and management of the Mandalika Circuit were not focused solely on short-term financial returns but also on long-term benefits for the local economy.

“The government’s main focus is not merely on return on investment, but on sustainable socioeconomic impacts for the people of Lombok and NTB,” he said. The government reaffirmed its commitment to sustaining Mandalika’s development as a hub for tourism, sports, and international investment, including plans to introduce efficient transport services such as seaplanes to improve connectivity with other destinations.

October 6, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/10/06/mandalika-motogp-draws-record-crowd-289m-economic-boost.html)

The Quick Response Indonesia Standard (QRIS) system will tap into China’s two dominant digital payment platforms, Alipay and WeChat, as part of Bank Indonesia’s (BI) ongoing expansion into the country. The integration is currently underway, with full implementation expected by the end of this year. BI payment system policy director Ryan Rizaldy said QRIS would be linked to those two platforms, though the integration had faced challenges due to diverging standards.

“We are seeking high merchant acceptance in the partner country, so that Indonesians can use [QRIS] at many merchants [in China]. That’s why we can’t make a deal with only one [payment provider],” he told reporters on the sidelines of a public discussion held by the Centre for Strategic and International Studies (CSIS) on Wednesday.

Ryan emphasized that the goal was to ensure QRIS could be “readable” for all merchants in China, adding that “the People’s Bank of China [PBoC] has the solution.” He explained that the PBoC would help link QRIS with both Alipay and WeChat without creating a new standard, though he did not provide further details on the integration mechanism.

BI had previously announced its collaboration with the PBoC to begin an “interconnection trial” between the two countries ahead of the planned expansion to China. The trial involves the Indonesian Payment System Association (ASPI), China’s UnionPay International (UPI), and representatives of payment system providers.

ASPI head Cosmas Setiawan Suwono said in August that the trial was expected to be completed “within this month,” allowing piloting to begin in September. The central bank said in April that four local payment service providers, PT Rintis Sejahtera, PT Alto Network, PT Artajasa Pembayaran Elektronis, and PT Jalin Pembayaran Nusantara, had reached an agreement with UnionPay International to create a secure testing environment, or sandbox.

During his session at the public discussion, Ryan highlighted that harmonizing policies remained the main challenge in implementing cross-border QR payment initiatives, noting that many countries, including China, had no unified standards. Other challenges included limited awareness of cross-border payment services in both Indonesia and partner countries, differing payment preferences, and growing concerns about potential fraud as the system expands. The central bank has already extended its QR technology to several ASEAN countries and beyond, including Singapore, Malaysia, Thailand, and most recently, Japan in August. In addition, it has placed several other countries in the pipeline, such as India, the United Arab Emirates (UAE) ,and Saudi Arabia.

Asked about the current expansion plan in the ASEAN region, Ryan hinted that priority would be given to countries with “stronger economic ties” and “higher transaction potential,” given the high costs of linkage and the varying economic scales across countries. However, he added that implementing cross-border payments with other regional countries such as Vietnam, Laos, and Cambodia was also possible, as they were already part of the regional payment connectivity (RPC) initiative. The adoption of QRIS among consumers and merchants has been surging at home, with the transaction volume of digital payments using the QR platform growing 148.5 percent year-on-year (yoy) to 6.1 billion in the first half of this year.

October 2, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/10/02/bi-to-link-qris-with-alipay-wechat-standards-in-china-push.html)