Category: Economy

Indonesian Bank Indonesia (BI) officially launched the Indonesian Digital Innovation Center (PIDI) and the cross-border QRIS (Quick Response Code Indonesian Standard) system between Indonesia and China at Grha Bhasvara Icchana on Thursday (April 30, 2026).

The establishment of PIDI aims to build a national digital innovation ecosystem and reflects a commitment to supporting job creation and economic growth through the development of sustainable business value for industry. This effort is supported by talent development, implementation-ready innovations, and strong synergy between public policy and societal needs.

PIDI is positioned as a policy enabler that bridges public policy with industry needs and technological development through an integrated upstream-to-downstream approach. Through PIDI, innovative ideas from Indonesian talent will be supported by technical capability training, business understanding, and structured mentoring until they are ready to be developed into digital products and services that address national priority needs.

PIDI is designed to ensure that innovation does not stop at the idea stage but progresses end-to-end through three main pillars. First, Market Intelligence, which maps innovations emerging in the market and aligns them with public needs. This pillar is expected to produce key outputs in the form of Strategic Intelligent Market Analytics (SIGMA). Second, Innovation Experimentation, which promotes hackathons as platforms for developing technological solutions to address national priority challenges. Third, Digital Talent Development, implemented through the DIGDAYA (Digital Talenta Berdaya dan Berkarya) initiative, aims to enhance the capacity of digital talent through structured training programs and to create new digital employment opportunities.

The event also included the inauguration of the cross-border QRIS system between Indonesia and China, marking the expansion of QRIS payment access globally. According to BI’s Board of Governors Meeting (RDG) press conference on April 22, 2026, trials of QRIS usage in China recorded 1.64 million transactions, with a total value equivalent to IDR 556 billion.

The implementation of QRIS in China will involve 24 providers from Indonesia comprising 16 banks and 8 non-bank institutions—and 19 providers from China. According to Filianingsih Hendarta, both technical and business aspects are fully prepared for implementation, with the official launch held on April 30, 2026.

The expansion of QRIS in China adds to the growing list of countries where Indonesians can conduct seamless cashless transactions. Prior to China, BI officially launched QRIS in South Korea on April 1, 2026. The system was already available in Thailand, Malaysia, Singapore, and Japan.

April 30, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20260430102645-17-731213/sah-bi-luncurkan-qris-antarnegara-ri-china-pusat-inovasi-digital-ri)  

Indonesian President Prabowo Subianto inaugurated the groundbreaking ceremony for 13 downstream projects across Indonesia. These projects are primarily being developed by state-owned enterprises (SOEs) and their partners. He explained that this ceremony marks the second phase of the downstreaming program, consisting of 13 projects with a total investment of IDR 116 trillion, including five energy projects, five mineral projects, and three agricultural projects.

“As mentioned earlier, the first phase of downstreaming involved 13 projects in 13 locations, and this year we will add six more projects, and we will continue to expand. There may be a fourth, fifth, or sixth phase, God willing, this year,” he stated at the inauguration in Cilacap on Wednesday (April 29, 2026).

He emphasized that downstreaming natural resources is the key to achieving greater prosperity and affirmed that the government will continue expanding such initiatives nationwide. One of the Phase 2 projects attracting attention is the development of coal into Dimethyl Ether (DME) in Tanjung Enim. The project was initiated by BPI Danantara and implemented by MIND ID in collaboration with PT Bukit Asam Tbk, Pertamina, and other strategic partners. It is expected to substitute imported LPG, given Indonesia’s high dependence on imported energy.

The following is a simplified list of the 13 Phase 2 downstream projects and their respective project owners:

Projects 1–2: Construction of Gasoline Refinery Facilities. State-Owned Enterprise (BUMN) Holding: PT Pertamina (Persero). Location: Dumai and Cilacap: 1) expansion of refinery capacity by 62 MBSD, targeted to be operational in Q4 2030; 2) reduces gasoline imports and strengthens national energy security.

Projects 3–4–5: Construction of Operational Fuel Tanks. State-Owned Enterprise (BUMN) Holding: PT Pertamina (Persero). Locations: Palaran, Biak, and Maumere: 1) development of fuel terminals with a total additional capacity of 153,000 KL; 2) enhances fuel distribution reliability, especially in Eastern Indonesia.

Project 6: Coal Processing Facility to Become DME. State-Owned Enterprises Holding: PT Pertamina (Persero) and PT Mineral Industri Indonesia (Persero). Location: Tanjung Enim: 1) development of a DME facility with a capacity of 1.4 million tons per year; 2) substitutes LPG imports and strengthens domestic energy security.

Project 7: Stainless Steel Manufacturing Facility from Nickel. State-Owned Enterprise Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Tsingshan Group. Location: Indonesia Morowali Industrial Park: 1) production of stainless steel slabs with a capacity of 1.2 million tons per year; 2) increases mineral value-added and supports industrial job creation.

Project 8: Carbon Steel Slab Production Facility. State-Owned Enterprise Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Xin Hai Group. Location: Cilegon: 1) production capacity of 1.5 million tons per year through facility modernization; 2) strengthens industrial foundations and infrastructure development.

Project 9: Buton Asphalt Ecosystem and Production Facility. State-Owned Enterprises Holding: PT Wijaya Karya (Persero) Tbk. and PT Jasa Marga (Persero) Tbk. Location: Karawang: 1) increases Buton asphalt utilization significantly by 2030; 2) supports local resource optimization and job creation.

Project 10: Copper and Gold Downstream Processing. State-Owned Enterprises Holding: PT Mineral Industri Indonesia (Persero) and PT Len Industri (Persero). Location: Gresik: 1) development of metal processing facilities with higher value-added products; 2) strengthens strategic industries and creates skilled employment.

Project 11: Palm Oil Processing into Oleofood and Biodiesel. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Sei Mangkei: 1) development of downstream palm oil products including biodiesel; 2) improves farmer welfare and supports energy security.

Project 12: Nutmeg Oleoresin Processing Facility. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Central Maluku: 1) establishment of a nutmeg processing facility; 2) enhances regional economic value and farmer income.

Project 13: Integrated Coconut Facility. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Central Maluku: 1) development of integrated coconut-based products such as MCT and coconut flour; 2) expands export opportunities and increases farmer income.

April 29, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20260429123019-4-730879/13-proyek-hilirisasi-rp116-t-mulai-dibangun-ini-pemiliknya)  

Deputy Minister of Tourism (Wamenpar) Ni Luh Puspa has expressed her commitment to developing Indonesia’s marine tourism sector. She invited the Ministry of Transmigration and the Coordinating Ministry for Infrastructure and Regional Development (Kemenkoinfra) to collaborate in this effort. Ni Luh conveyed this initiative in her remarks at the opening of Deep and Extreme Indonesia 2026 at the Jakarta Convention Center, Senayan, Jakarta, on Thursday (April 23, 2026).

“Of the tourists visiting Indonesia, 75% choose nature-based tourism, while 65% are interested in marine tourism. Empirically, I can report that marine tourism makes a highly significant contribution to the national tourism sector,” said Ni Luh.

She added that marine tourism contributes approximately 32%–42% to total national tourism economic activity and around 1.5%–2% to national GDP within the tourism sector. This is further supported by more than 2,000 coastal villages that have developed or are currently developing marine tourism as a driver of local economic growth.

“Many of our tourist villages are also located in transmigration areas. Therefore, we need to strengthen collaboration to stimulate and further develop this nature-based tourism,” she added. She also noted that the COVID-19 pandemic has shifted travel preferences. Previously, tourists came to Indonesia primarily for leisure; now, they seek meaningful experiences.

“Tourists now prioritize spiritual and experiential value that they can take home. We observe that many visitors, especially international tourists, are increasingly choosing nature-based activities such as diving, surfing, sailing, trekking, and other adventure tourism experiences,” she said.

The Coordinating Minister for Infrastructure, Agus Harimurti Yudhoyono (AHY), who was also present at the event, responded positively to Ni Luh’s proposal and pledged support for marine tourism development.

“We fully support stronger synergy and collaboration among ministries and institutions. This includes the Ministry of Transmigration, as many transmigration areas indeed have strong potential in the marine tourism sector, along with opportunities for developing the creative economy,” said AHY.

“If these efforts are integrated and strengthened through improved infrastructure and connectivity both physical and digital we will be able to develop more marine tourism destinations that we can take pride in, with significant economic impact, as highlighted by the Deputy Minister,” he added.

AHY also addressed the development of the “10 New Bali” destinations, emphasizing the importance of connectivity in advancing Indonesia’s tourism sector.

“There are 10 ‘New Bali’ destinations being developed. Bali has long been a cornerstone of Indonesian tourism, but we must also develop other destinations with equally strong potential that have not yet been fully optimized,” he stated.

“Achieving this requires robust infrastructure and interregional connectivity from Bunaken in North Sulawesi, Wakatobi, Labuan Bajo, to Raja Ampat, and many other destinations,” he concluded.

April 23, 2026, detikTravel

(https://travel.detik.com/travel-news/d-8458242/wamenpar-ajak-kementerian-transmigrasi-dan-ahy-kembangkan-wisata-bahari)  

Amid Amid persistent energy security challenges, Indonesia continues to reinforce the foundations of national energy independence through the optimal utilization of domestic resources. A key strategic initiative in this regard is the accelerated implementation of the B50 biodiesel program a blend comprising 50 percent palm oil–based biodiesel and 50 percent conventional diesel. This policy reduces reliance on imported fuels and reflects the government’s commitment to a more resilient and sustainable energy system.

The Government of Indonesia has mandated the nationwide implementation of B50 beginning July 1, 2026. In preparation, comprehensive road tests have been conducted across various vehicle categories, including heavy-duty trucks and buses manufactured by Mercedes-Benz and UD Trucks.

According to Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, the results have met established performance targets. The findings indicate that tested vehicles can operate effectively on B50 fuel, with no significant technical issues. The fuel has also demonstrated reliability, safety, and compatibility with existing engine technologies.

The government continues refining distribution infrastructure and securing raw material supply to ensure readiness. The policy will be implemented simultaneously across all sectors to avoid logistical complications. The B50 testing program began with laboratory evaluations in early 2025, followed by simultaneous field testing across six sectors automotive, mining, agriculture, maritime transportation, railways, and power generation starting December 9, 2025. These trials were conducted systematically under varied conditions to ensure compliance with technical standards and safety.

After road testing, vehicles undergo detailed inspections to assess engine performance and the impact of B50 usage. As of April 2026, results confirm that B50 is safe for diesel engines, with no significant degradation observed. Heavy vehicles have reached 40,000 km testing milestones, while lighter vehicles are nearing 50,000 km, with engines and fuel systems remaining within manufacturer standards.

The testing program includes nine automotive units and also involves European manufacturers, reflecting broader participation compared to earlier programs. Trials extend to agricultural machinery, maritime vessels, mining operations, and railway systems, including interprovincial routes such as Yogyakarta to Jakarta.

The government projects that B50 implementation will generate significant economic and environmental benefits, including foreign exchange savings of up to IDR 157.28 trillion, the creation of over 2.2 million jobs, and a reduction of greenhouse gas emissions by approximately 46.72 million tons of CO₂ by 2026. Biodiesel distribution has reached 3.90 million kiloliters, or 24.9 percent of the annual allocation.

Technically, B50 specifications have been enhanced to maintain engine performance, including stricter limits on water content and monoglycerides, as well as improved oxidation stability to ensure fuel quality during storage and distribution. With automotive trials expected to conclude by June 2026 and other sectors progressing in phases, the B50 program is positioned to strengthen Indonesia’s energy independence and sustainability.

April 23, 2026, CNBC Indonesia(https://www.cnbcindonesia.com/news/20260423114849-4-729175/biodiesel-b50-sudah-uji-jalan-ke-truk-bus-mercy-ini-hasilnya)

The International Monetary Fund (IMF) and foreign investors view Indonesia as one of the world’s “bright spots,” supported by strong economic fundamentals and resilience, despite its vulnerability to global economic turbulence, according to Bank Indonesia (BI).

“The IMF and global investors have praised Indonesia’s consistency in maintaining macroeconomic stability through strong fiscal and monetary coordination, keeping the deficit below 3 percent of GDP, and adopting adaptable, forward-looking policies in response to external pressures,” BI spokesperson Anton Pitono said in a press release on Wednesday.

During the IMF Spring Meetings 2026 on Tuesday, IMF Managing Director Kristalina Georgieva said that, amid increasingly complex global dynamics, Indonesia has demonstrated the ability to balance stability and growth, supported by strong domestic demand. The meeting was attended by BI Governor Perry Warjiyo, Finance Minister Purbaya Yudhi Sadewa and members of the House of Representatives. BI emphasized that Indonesia’s domestic economy remains on track, supported by solid demand, controlled inflation, and improving banking intermediation.

The central bank noted that Indonesia has implemented an integrated policy mix, combining stability-focused monetary policy, growth-oriented macroprudential measures, and a strengthened payment system to support economic activity and digitalization.

Amid ongoing global turbulence, BI reiterated its commitment to maintaining exchange rate stability, strengthening monetary instruments, and managing liquidity prudently to sustain growth, while coordinating with the government to uphold fiscal discipline. Indonesia also reaffirmed its commitment to structural transformation toward a value-added economy through downstream industries and the development of technology-based sectors.

Prior to the meeting in Washington, DC, Purbaya met global investors in New York, including representatives of HSBC Global Asset Management and BlackRock.

“They intend to invest in Indonesia. We provided clarification to address their concerns,” he said in a press release on Tuesday. However, Indonesia remains exposed to global tensions stemming from the ongoing United States–Israeli war on Iran, which has triggered an energy crisis and heightened economic risks worldwide.

S&P Global Ratings warned in a report published on Monday that sovereign ratings in Southeast Asia could come under pressure due to the Middle East conflict, particularly if disruptions in global energy markets persist in the coming months.

“In Southeast Asia, we believe Indonesia’s sovereign ratings would be more vulnerable if the conflict drags on. In contrast, credit support for other major emerging economies in the region is likely to be more resilient,” the report stated.

S&P noted that Indonesia’s sovereign ratings are sensitive to weakening fiscal and external metrics. Higher energy prices could increase subsidy spending and strain the state budget, while rising inflation may push up government interest payments through higher market rates. Overall, Indonesia’s credit metrics are expected to weaken slightly. However, as a commodities exporter, the country may benefit from mitigating factors, particularly if a broad-based increase in commodity prices helps offset fiscal pressures and supports its sovereign rating.

April 16, 2026, The Jakarta Post(https://www.thejakartapost.com/business/2026/04/16/imf-global-investors-see-indonesia-as-bright-spot-bi-says.html

President Prabowo Subianto inaugurated on Thursday the country’s first electric vehicle (EV) assembly plant for large commercial vehicles in Magelang, as Southeast Asia’s largest economy steps up efforts to localize production and reduce fuel imports. With the inauguration of the facility, operated by PT VKTR Sakti Industries, a subsidiary of PT VKTR Teknologi Mobilitas, Indonesia now has the capacity to assemble up to 10,000 electric buses annually.

“We must move toward clean, renewable energy. Electrification is one way to reduce reliance on fossil fuels,” Prabowo said during the ceremony.

Regional administrations, including Jakarta and Central Java, have placed orders for dozens of electric buses for public transit systems, providing early demand for the plant’s output.

“This is something we should be proud of, that we already have a bus and truck industry. Regional leaders who are not ordering domestic products should do so, and the military must also prioritize local purchases,” he added. “If Japan has Isuzu and Hino, and Korea has Hyundai and Daewoo, I hope that in the coming years we will see VKTR emerge as one of Indonesia’s champions.”

Before the inauguration, Prabowo toured the plant’s production lines, which assemble a range of Evs from trucks to buses intended for public transportation and logistics, including units for Jakarta’s Transjakarta network. The assembly process covers multiple stages, from chassis assembly and welding to main assembly, body finishing, and final inspection. The Magelang facility currently meets a local content requirement of more than 40 percent for buses. The company aims to raise this to 60 percent this year and 80 percent by 2028, according to VKTR president commissioner Anindya Bakrie.

“Electrifying buses and trucks could save Indonesia up to US$5 billion annually in fuel subsidies,” Anindya said. When VKTR debuted on the Indonesian Stock Exchange in 2023, it primarily operated as a trading company importing completely built-up (CBU) K9 electric buses from China’s EV giant BYD for use by Transjakarta, before expanding into assembly.

The facility adds to Indonesia’s growing EV manufacturing base, with new plants by BYD and VinFast in Subang expected to begin operations later this year. Since 2019, Indonesia has sought to position itself as a global EV hub by leveraging its vast nickel reserves, supported by tax incentives to attract investment and accelerate domestic adoption.

The President renewed the electrification push earlier this month as global oil prices surged above $100 per barrel amid the United States–Israeli war on Iran, now in its fifth week, far exceeding the country’s 2026 budget assumption of $70. Prabowo, who has long promoted biofuels as a path to energy security, is now calling for a broader transition to EVs and electric stoves. His plans include forming a task force, targeting up to 100 gigawatts in additional solar power capacity, and converting 120 million motorcycles within four years.

Shifting from fossil fuels to electricity for households and transportation is a logical response to Indonesia’s dependence on energy imports amid the Middle East crisis. However, experts note that the success of electrification will depend on sustained policy support.

April 10, 2026, The Jakarta Post

(https://www.thejakartapost.com/business/2026/04/10/prabowo-inaugurates-ris-first-electric-bus-truck-assembly-plant.html)

Indonesia has begun construction of its first domestic melamine plant in the Gresik Special Economic Zone (KEK Gresik), East Java, in a move aimed at accelerating downstream development in the national chemical industry. The project, developed by PT GEABH Joint Technology, is targeted to commence operations in the second quarter of next year. Coordinating Economic Affairs Minister Airlangga Hartarto said the development reflects the government’s commitment to strengthening value-added industries, particularly in strategic sectors such as petrochemicals.

“This project is part of a broader development plan in KEK Gresik, with a projected investment of around US$600 million (IDR 10.2 trillion),” he said on Wednesday.

The facility is designed as an integrated melamine production chain with an annual capacity of up to 120,000 tonnes. In its initial phase, the plant will include production capacities of 800 tonnes per day (TPD) of ammonia, 1,500 TPD of urea, and 200 TPD of melamine.

The complex will process natural gas into ammonia, which will then be converted into urea and further developed into higher-value derivative products such as ammonium nitrate and melamine, a chemical compound mainly used to produce hard and durable plastics. These products are widely used in agriculture, chemicals, and manufacturing, and are expected to support domestic industries while opening export opportunities.

The project aligns with the government’s 2025–2029 National Medium-Term Development Plan (RPJMN), which prioritizes industrial downstreaming and the strengthening of special economic zones as key drivers of growth. KEK Gresik has been designated as one of the country’s priority zones, playing a strategic role in boosting industrialization, exports, and regional economic development.

As of 2025, cumulative investment in special economic zones reached IDR 336 trillion, with more than 249,000 jobs created. KEK Gresik alone accounted for IDR 105.4 trillion, or roughly 31 percent of total KEK investment, employing around 46,000 workers. Airlangga noted that the manufacturing sector contributed 19.07 percent to Indonesia’s gross domestic product in 2025, underscoring its role as a key growth engine across industrial zones. At the regional level, manufacturing in East Java contributes about 31.32 percent to the regional economy, while the unemployment rate in Gresik regency has declined from 8 percent to 5.47 percent over the past five years.

“East Java is one of Indonesia’s main manufacturing hubs, contributing nearly a quarter of national manufacturing output. It is therefore crucial to maintain this competitive momentum,” said East Java Deputy Governor Emil Elestianto Dardak.

Beyond import substitution for key chemical feedstocks, the melamine project is expected to strengthen domestic supply chains, enhance export competitiveness, and create new employment opportunities. The development of KEK Gresik has been supported by government-backed infrastructure and policy incentives aimed at fostering industrial expansion in the zone. Government data also point to broader socioeconomic gains, including improvements in the Human Development Index (HDI), which rose from 76.98 in 2021 to 79.69 in 2025.

April 9, 2026, The Jakarta Post

(https://www.thejakartapost.com/business/2026/04/09/ri-breaks-ground-on-first-melamine-plant-with-600m-investment-plan.html)

Researchers from the Center for Strategic and International Studies (CSIS) have urged the government to pursue strategic diversification to shield Indonesia from risks stemming from heightened global uncertainty.

“We view strategic diversification as a win-win option, as it neither forces our country to weaponize its foreign economic policies nor to isolate itself from the international community,” said Dandy Rafitrandi, an economic expert at CSIS Indonesia, during a panel discussion on Tuesday.

Muhammad Habib Abiyan Dzakwan, an international relations researcher at CSIS Indonesia, added that being strategic meant being “well-calibrated, with clear objectives and alignment among goals, methods, and resources,” while diversification meant “reducing asymmetric dependence on any single partner, product, or platform.”

This approach is particularly relevant in responding to external crises, including the impact of the United States–Israeli war on Iran, which has disrupted global systems and affected Indonesia’s trade policies, domestic industries, and attractiveness to foreign investment. CSIS recommends implementing diversification strategically across the energy, food, manufacturing, and technology sectors.

Indonesia’s export structure remains heavily concentrated among a limited number of trading partners, posing risks amid rising global tensions and a weakening multilateral trade system. CSIS executive director Yose Rizal Damuri warned that dependence on specific markets increases vulnerability to external shocks. He also cautioned against extreme inward-looking self-sufficiency policies, which could undermine competitiveness. Instead, the government should move beyond merely expanding export markets and pursue targeted diversification by comprehensively assessing risks and aligning long-term goals.

At the same event, Ditya Agung Nurdianto, the Foreign Ministry’s director for international trade, revealed that 84.5 percent of Indonesia’s exports over the past decade went to just 19 countries, highlighting heavy reliance on key partners. Such concentration is increasingly problematic amid global fragmentation and protectionism, as the rules-based trading system continues to erode.

Ditya noted that institutions such as the World Trade Organization are facing mounting challenges, with the latest ministerial conference in March failing to produce substantial agreements due to a lack of consensus. He also highlighted structural shifts, including the “weaponization of interdependence,” where economic and technological networks are increasingly used as geopolitical tools.

Additionally, industrial policies in developed economies such as tariffs, “friendshoring,” and “nearshoring” have created an uneven playing field for global trade and investment. Meanwhile, the escalating Middle East conflict has exposed vulnerabilities in the global energy system, with high oil prices straining Indonesia’s state budget and posing risks to domestic stability.

CSIS researchers found that while Jakarta recognizes global conflict as a key threat and the need for flexible responses, ministerial silos have hindered the development of a coherent national strategy. Crisis responses remain slow, fragmented, and overly focused on domestic stability, underscoring the need for a more integrated approach. They also urged stronger coordination across ministries to expand access to global markets. Although Indonesia has established multiple free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP) and various Comprehensive Economic Partnership Agreements (CEPAs), fragmented policymaking often leads to inconsistent regulations that hinder business efficiency.

April 9, 2026, The Jakarta Post

(https://www.thejakartapost.com/business/2026/04/09/ri-needs-strategic-diversification-to-mitigate-global-crises-csis.html)

The Tourism Ministry is preparing measures to anticipate a potential loss of up to 60,000 inbound tourists as the United States–Israeli war on Iran disrupts the global travel industry. The closure of Iranian airspace since the initial wave of attacks on Feb. 28 has affected flights across six major aviation hubs, including Abu Dhabi and Dubai in the United Arab Emirates, Jeddah and Madinah in Saudi Arabia, and Muscat in Oman.

These disruptions have led to the cancellation of around 770 flights to Jakarta, Bali’s capital Denpasar, and North Sumatra’s capital Medan, according to the ministry. As a result, Indonesia could lose up to 60,000 international visitors, along with an estimated IDR 2.04 trillion (US$120.6 million) in potential foreign exchange earnings.

“Global geopolitical dynamics are putting pressure on the tourism sector. However, we will continue to take mitigation steps to maintain our national tourism targets,” Tourism Minister Widiyanti Putri Wardhana said in a statement on Wednesday.

The ministry also highlighted mounting pressure from rising global energy prices. Crude oil prices have surged by more than 50 percent, from around $67 per barrel before the conflict to over $100 per barrel within its first month. Consequently, fuel surcharges imposed by several global airlines are expected to increase, driving up overall transportation costs.

On April 1, state-owned oil and gas company Pertamina raised aviation turbine fuel (avtur) prices by around 70 percent for domestic flights and 80 percent for international flights compared with the previous month. This move has prompted the Indonesia National Air Carriers Association (INACA) to renew its call for adjustments to both fuel surcharges and airfare price ceilings. The association initially proposed a 15 percent increase but has since called for further adjustments in response to the sharper-than-expected rise in jet fuel prices.

Despite these challenges, the Tourism Ministry remains committed to achieving this year’s target of 16–17.6 million foreign visitors. To navigate the growing pressures on international travel, the ministry is pursuing a “market pivot” toward Southeast Asia, East Asia, and other medium-haul destinations. Its mitigation strategies include strengthening digital campaigns in international markets and optimizing partnerships with airlines operating direct routes to Europe and the United States. The government also plans to host international events in border regions and intensify travel promotions to sustain occupancy rates in domestic tourist destinations.

“Amid global pressures, we need to be more adaptable. Market diversification, stronger promotion, and optimizing domestic tourism are key to ensuring the sector remains a driving force of the national economy,” Widiyanti said.

She added that collaboration among ministries, institutions, and the House of Representatives will be essential to maintaining the sector’s resilience and contribution to national economic growth. The government is also pursuing several strategic measures, including flight incentives, visa-free policies, increased flight capacity, and expanded budgets for tourism promotion.

April 2, 2026, The Jakarta Post(https://www.thejakartapost.com/business/2026/04/02/ri-to-lose-60000-foreign-visitors-to-mideast-crisis-tourism-ministry.html)  

Indonesia’s trade surplus slightly increased to US$1.27 billion in February, up from US$954 million in the previous month, despite rising imports of capital goods. However, the figure remained lower than the May–December period last year, when the surplus consistently exceeded US$2 billion.

Total imports rose 10.85 percent year-on-year (yoy) to US$20.89 billion, driven mainly by capital goods imports, which surged 33.68 percent yoy to US$4.61 billion. Consumer goods imports increased 19.84 percent to US$1.76 billion, while raw material imports rose 4.25 percent to US$14.52 billion.

Among specific categories, precious metals and jewelry recorded the highest annual import growth, rising 63 percent, followed by mechanical appliances and electrical machinery, which increased 51.6 percent and 19.6 percent, respectively. Overall imports in January–February totaled US$42.09 billion, reflecting a 14.44 percent annual increase. The Permata Institute for Economic Research (PIER) noted that this figure was slightly above its 8.74 percent forecast, though it moderated from 18.21 percent growth in January.

Despite the slowdown, import growth continued to outpace exports, reflecting a weaker global economic outlook alongside Indonesia’s pro-growth policies that have sustained domestic demand, the Jakarta-based research institute said. It added that all import categories consumer goods, raw materials, and capital goods recorded growth. However, raw materials and capital goods growth moderated amid rising trade uncertainty in February, while consumer goods imports accelerated in line with seasonal Ramadan demand.

Exports rose only 1.01 percent yoy. According to Statistics Indonesia (BPS), key export drivers included animal and vegetable fats and oils, nickel and its derivatives, and electrical machinery and equipment. Exports of animal and vegetable fats, including crude palm oil (CPO), rose 16.19 percent yoy to US$3.1 billion in February, followed by iron and steel, which increased 3.3 percent. In contrast, mineral fuels exports, including coal, fell 15.65 percent from a year earlier.

Indonesia’s cumulative trade surplus for January–February stood at US$2.23 billion, significantly lower than US$6.59 billion in the same period last year. Trade with China remained the largest source of deficit, widening from US$3.3 billion to US$4.99 billion. Statistics Indonesia deputy for distribution and services statistics Ateng Hartono said the deficit was driven mainly by imports of mechanical appliances, electrical machinery, and vehicles.

Beyond China, Australia and Singapore also contributed to larger trade deficits. The deficit with Australia rose to US$1.69 billion, driven by precious metals, cereals, and coal, while the deficit with Singapore reached US$1.48 billion, led by mechanical appliances and precious metals.

Despite the Agreement on Reciprocal Trade (ART) aimed at reducing Indonesia’s trade surplus with the United States, the surplus with the US continued to widen. It increased from US$2.63 billion to US$3.11 billion in the first two months of the year, supported by exports of electrical machinery, apparel, and crude palm oil.

April 1, 2026, The Jakarta Post(https://www.thejakartapost.com/business/2026/04/01/ri-posts-1-27b-trade-surplus-despite-surge-in-capital-goods-imports.html)