Category: Economy

Indonesia President Prabowo Subianto attended the Indonesia Defense 2025 Expo and Forum at JIExpo, Kemayoran, Central Jakarta. Prabowo will officially open the exhibition. Indonesia Defense 2025 is an exhibition of domestic and foreign defense equipment. This event was held for four days on 11-14 June 2025 at JIExpo Kemayoran, Jakarta. This exhibition was attended by 55 countries and participated by 32 Country pavilions. During the event, there were several defense contracts and industrial cooperation between Indonesia and participants from various countries.

The Ministry of Defense signed 27 procurement contracts with the defense industry at the Indo Defense Expo and Forum 2025. This cooperation was signed in front of President Prabowo Subianto who attended the same event held at JIExpo Kemayoran, Central Jakarta, Wednesday (11/6/2025). Prabowo was seen watching as the 27 defense contracts were signed directly by each business entity. The total value of the contracts is IDR 33 trillion.

The Ministry of Defense claims that so far since 2020 until now there have been around 792 defense cooperation contracts signed with a total project value of IDR 230 trillion. In addition to the 27 contracts, Prabowo also witnessed the cooperation signed directly by the Minister of Defense Sjafrie Sjamsoeddin with the President of the Defense Industry Secretariat (Savunma Sanayii Baskanligi/SSB) Haluk Gorgun regarding the procurement of the 5th generation KAAN fighter jet. The signing of this cooperation was carried out in a different room. In the room, a miniature of the 5th generation KAAN fighter jet was displayed. In addition, the French weapons manufacturer, KNDS, is collaborating with the Indonesian domestic industry. KNDS will carry out production cooperation with PT Pindad to PT Dirgantara Indonesia (PTDI).

The cooperation was signed on the sidelines of the Indo Defense Forum & Expo 2025 defense equipment exhibition at JIEXPO Kemayoran, Central Jakarta. At least two memorandums of understanding were carried out with PT Pindad and KNDS, namely cooperation in the field of artillery and large-caliber ammunition. This agreement includes the transfer of local production.

Then, with PT Dirgantara, KNDS signed a cooperation in the form of production of Indonesian helicopter equipment equipped with 20mm cannons. CEO of KNDS France Nicolas Chamussy said that the defense industry relationship between Indonesia and France was getting closer with these signed agreements. In fact, the KNDS booth as a representative of the French industry was visited by President Prabowo Subianto at the Indo Defense event. KNDS also signed other cooperation agreements, for example with the local industry PT SSE in the context of developing an anti-UAV variant of the domestically made P2-TIGER. As well as the Ministry of Defense’s Research and Development Agency to explore research and development topics regarding land defense.

The MoU or memorandum of understanding signed with several parties also includes cooperation in manufacturing and technology transfer. KNDS is committed to becoming a strategic partner in accelerating Indonesia’s land defense independence. Government to government or government to government Indonesia and France agreed to sign a Letter of Intent (LOI) in the defense sector between the French and Indonesian Defense Ministers within the framework of the Defense Cooperation Agreement (DCA). Under the umbrella of DCA, the two governments will open up cooperation between defense industry players in both countries, such as KNDS.

June 11, 2025, detikFinance(https://news.detik.com/berita/d-7958582/prabowo-hadiri-indo-defence-2025-expo-and-forum-di-jiexpo-kemayoran)(https://finance.detik.com/industri/d-7959181/27-kontrak-pertahanan-diteken-di-depan-prabowo-total-rp-33-triliun)(https://finance.detik.com/industri/d-7962195/raksasa-alutsista-prancis-bidik-proyek-senjata-helikopter-dengan-ri)

The Ministry of Industry (Kemenperin) supports business actors in the food and beverage industry to be more innovative and globally competitive. Therefore, the government is also encouraging domestic food and beverage companies to collaborate with international partners. This step aims to transfer technology and knowledge and expand export market expansion. Moreover, so far, the food and beverage industry has been one of the sectors that has received priority for development because it plays an important role in supporting the national economy.

“The food and beverage industry has become the backbone of the non-oil and gas processing industry, with a significant contribution to the national Gross Domestic Product (GDP) and job creation,” said Minister of Industry Agus Gumiwang Kartasasmita in a written statement, Monday (2/6/2025).

One example of international cooperation that has just been realized in the food and beverage industry sector is between PT Niramas Pandaan Sejahtera (NPS) and Tarami Corporation from Japan. PT NPS is a subsidiary of PT Niramas Utama (NU), a producer of food and beverage products with the INACO trademark. Meanwhile, Tarami Corporation is the number one fruit jelly producer in Japan based in Nagasaki and is part of DyDo Group Holdings Ltd.

Through this collaboration, NPS produces fruit jelly in cup packaging with high standards equivalent to production standards in Japan through the Japan Quality Line, a special production line that guarantees the safety, quality, and deliciousness of products equivalent to products produced in Nagasaki, Japan.

This project is also supported by Kawasho Foods Corporation (Tokyo, Japan) which is a partner in procuring some of the raw materials. The entire production process, from raw materials to the final product, is carried out in a halal manner and in accordance with internationally recognized halal certification standards.

NPS President Director Adhi S. Lukman, said that with the existing facilities, as well as a good work ethic, his party believes that this collaboration will run well and sustainably. The company is also committed to continuing to present healthy, safe, and high-quality products for Muslim consumers around the world.

“We also appreciate our partners for the work ethic improvement program for our human resources so that they can be more productive and efficient and able to produce product quality equivalent to Japanese products,” he said.

By combining innovation, halal values, and Japanese quality, the collaboration between NPS, Tarami Corporation and Kawasho Food Corporation is expected to be an example of cross-country synergy that produces real benefits for the global community, especially Muslim consumers who are increasingly aware of the importance of quality halal products.

June 2, 2025, detikFinance

(https://finance.detik.com/industri/d-7945355/perusahaan-ri-jepang-kerja-bareng-garap-produk-halal)

President Prabowo Subianto has held a bilateral meeting with Russian President Vladimir Putin, at the Konstantinovsky Palace, St. Petersburg, Russia, Thursday (6/19/2025). In the meeting, there were several collaborations that had been agreed upon between the two countries. Putin said that Indonesia is an important trading partner of Russia in the Southeast Asia region. This is evidenced by the total trade value of the two countries reaching US$ 4.3 billion in 2024 and increasing by 40% in the last 4 months in 2025.

In addition, Putin also revealed that the bilateral meeting was warm and opened up many opportunities for cooperation in various strategic sectors. Such as in the field of nuclear energy development.

“We also want to realize nuclear projects in the peaceful sector, including health, staff training,” said Putin.

He also revealed that the two countries are interested in increasing cooperation in the field of advanced technology, such as the use of outer space, smart cities, and artificial intelligence.  In the oil and gas sector, Putin also revealed that Russia is willing to increase the supply of oil and liquefied natural gas to the Indonesian market. In addition, Russia also agreed to help Indonesia increase oil and gas production.

“We are willing to participate in new projects on the Indonesian offshore and also modernize infrastructure to boost oil production from old fields,” Putin said.

On the same occasion, Prabowo said that the meeting was intense and productive, where there was an increase in cooperation in various economic fields. At that time, Prabowo also offered Russia to increase the number of direct flights to other cities in Indonesia. In addition, Prabowo also expressed his desire to increase the number of Indonesian students to Russia, through Indonesian government scholarships. He also expressed his appreciation for Russia’s support for Indonesia’s membership in the BRICS alliance and the free trade cooperation agreement.

“I also welcome the agreement between Indonesia and Russia in our role in the Eurasian Economic Union,” Prabowo said.

In the series of events, Prabowo and Putin also witnessed the exchange of a number of bilateral cooperation documents. The cooperation documents include: 1. Agreement between the Ministry of Higher Education, Science, and Technology of the Republic of Indonesia and the Ministry of Science and Higher Education of the Russian Federation on Cooperation in the Field of Higher Education; 2. Memorandum of Understanding between the Ministry of Transportation of the Republic of Indonesia and the Ministry of Transportation of the Russian Federation on Cooperation in the Transportation Sector; 3. Memorandum of Understanding between the Ministry of Communication and Digital of the Republic of Indonesia and the Ministry of Digital Development, Communication, and Mass Media of the Russian Federation on cooperation in the field of digital development and mass media; 4. Memorandum of Understanding between the Daya Anagata Nusantara Investment Management Agency (DANANTARA) and the Joint Stock Company “Management Company of Russian Direct Investment Fund”.

In addition, during the meeting, President Putin and President Prabowo also agreed to the “Declaration of Strategic Partnership between the Russian Federation and the Republic of Indonesia”. The exchange of cooperation documents reflects a new direction in the increasingly broad and multidimensional bilateral relations between Indonesia and Russia, ranging from education and the digital economy, to investment, transportation, and strengthening connectivity between strategic institutions.

June 20, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250620090352-4-642505/ini-hasil-pertemuan-prabowo-putin-kerja-sama-nuklir-hingga-migas)

Indonesian President Prabowo Subianto has just inaugurated the initial production of two oil and gas projects, namely the Forel-Bronang Field and the Terubuk Field, offshore in the Natuna Sea, Riau Islands, today, Friday (16/5/2025).

“By saying Bismillahirrahmanirrahim, this afternoon, Friday, May 16, 2025, I, Prabowo Subianto, President of the Republic of Indonesia, inaugurate the initial production of the Forel and Terubuk Oil Fields. Thank you. Good luck,” said Prabowo online, Friday (16/5/2025).

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said that the two oil and gas fields are operated by Medco E&P Natuna Ltd, a subsidiary of PT Medco Energi Internasional Tbk (MEDC). The total investment for the two oil fields is estimated to reach US$ 600 million or around IDR 9.85 trillion (assuming an exchange rate of IDR 16,424 per US$) and and is able to create jobs for approximately 2,300 people during the construction period.

He said that these two projects have a large Domestic Component Level (TKDN), both in terms of labor and oil collection vessels. The Forel Project and the Terubuk Project are part of the development of oil and gas potential in the South Natuna Working Area, Block B, Natuna Sea, Riau Islands Province. On this occasion, he also said that national oil lifting production is expected to increase to 900,000-1 million barrels per day (bpd) in 2029-2030.

“In order to translate the direction of the President’s policy that has been planned in 2029-2030 we must create our production of around 900 thousand barrels or up to 1 million barrels (per day), so we report that in general, in 2024, our lifting will reach 580 thousand barrels. In the 2025 State Budget, thanks to the hard work of the Ministry of Energy and Mineral Resources team, SKK Migas, and all KKKS who are working hard in the field, we report, ask for support, God willing, the State Budget target and the President’s target we will be able to realize by the end of 2025,” he explained.

The Forel-Bronang project itself is located in the Natuna Sea Offshore, Riau Islands with an oil production capacity of 9,900 barrels per day (bpd) and gas production of 42 million standard cubic feet per day (MMSCFD). Meanwhile, the first oil and gas production of the Forel-Bronang Natuna project was carried out on May 12, 2025, through Well A-01 at WHP Forel to FPSO (Floating Production, Storage, and Offloading) Marlin Natuna. The production flow rate of well A-01 reached 5,000 bpd or equivalent to 0.86% of national production. The development of this project requires an investment of around US$ 250 million equivalent to IDR 4.1 trillion (assuming an exchange rate of IDR16,410 per US$) with details of drilling and completion investment of US$ 133 million equivalent to IDR 2.18 trillion and production facility investment of US$ 117 million equivalent to IDR 1.92 trillion.

Terubuk Siput FieldTerubuk Siput Field, South Natuna Sea Block B Working Area is located in the Offshore Natuna Sea, Riau Islands. The project made its first production at the end of April 2025. The initial production of the Terubuk Siput Field itself was in the form of gas reaching 12.6 MMSCFD or equivalent to 0.18% of national production and oil of 4,240 bpd or 0.73% of national production. Meanwhile, the development of the project requires an investment of around US$ 540 million or equivalent to IDR 8.85 trillion with a breakdown of drilling investment of US$ 254 million or equivalent to IDR 4.16 trillion and production facility investment of US$ 286 million or equivalent to IDR 4.69 trillion.

May 16, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250516174259-4-633906/baru-diresmikan-prabowo-proyek-minyak-di-natuna-telan-rp-98-triliun)

Lion Group’s aircraft workshop, Batam Aero Technic (BAT) has the potential to be the largest in the world. The workshop can repair dozens of aircraft at once. According to Lion Group Founder Rusdi Kirana, his company’s Maintenance, Repair, and Overhaul (MRO) facility can now accommodate 23 aircraft. Not only does it carry out repairs or maintenance on aircraft owned by Lion Group, but this facility can also accommodate other airlines.

“Later at the end of the year there will be around 27 percent, so it will be the largest aircraft workshop in the world. This is one of the reasons we can survive the onslaught of the dollar, the tariff war. We survive because we have our own workshop, we will continue with other airlines, so technical excellence.” he said happily.

As an MRO center in the Southeast Asia region, BAT is expected to be able to attract domestic and international airlines to carry out aircraft maintenance in Indonesia, so that it will increase the flow of business from abroad and make Indonesia a regional MRO hub. With the number of facilities continuing to grow, BAT certainly needs more human resources (HR). Currently, Lion Group is carrying out certification for the Kirana Polytechnic.

It is expected that the Polytechnic can operate in July and will recruit hundreds of prospective students. As a college, Kirana Polytechnic has four study programs, namely: 1. Aviation Industry Logistics; 2. Avionics Engineering Technology; 3. Aircraft Maintenance Engineering Technology; 4. Advanced Aviation Technology and Ecosystem.

“We hope that Kirana Polytechnic can operate and will focus on educating good engineers. That’s all scholarships.”

May 10, 2025, detikTravel

(https://travel.detik.com/travel-news/d-7908269/bengkel-pesawat-lion-group-bakal-jadi-yang-terbesar-sedunia)

Coordinating Minister for Economic Affairs Airlangga Hartarto has just held a meeting with Fumio Kishida as the special envoy of the Prime Minister of Japan. The meeting was a follow-up to the previous meeting between President Prabowo Subianto and Kishida.

Airlangga said that in this meeting, both parties also witnessed the signing of the Financial Close between PT Supreme Energy Muara Laboh (PT SEML) and the Japan Bank for International Cooperation (JBIC) for the Muara Laboh Geothermal Power Plant (PLTP) project unit 2 in Solok, West Sumatra. The 88 Mega Watt capacity project has an investment of up to US$ 500 million or around IDR 8.2 trillion.

“Today the showcase that is already running is the Muara Laboh PLTP in Solok, West Sumatra with this financial close of 88 MW of the project with a project value approaching 500 million USD,” said Airlangga at the Coordinating Ministry for Economic Affairs Office, Jakarta, Monday (5/5/2025).

According to Airlangga, the funding of the Muara Laboh PLTP unit 2 projects by JBIC is a commitment of cooperation between the Indonesian and Japanese governments regarding the energy transition through the Asia Zero Emission Community (AZEC) initiative.

“In 2013, when he served as the Japanese Foreign Minister’s Partner, Mr. Kishida signed a joint crediting mechanism with the Coordinating Minister for the Economy at that time and then PM Kishida initiated the establishment of the ASEAN Zero Emission Economy Community, whose showcase that is currently running is the Muara Laboh PLTP in Solok,” he said.

In addition to the Muara Laboh PLTP, Airlangga revealed that a number of other projects have also been included in the first category of Indonesia-Japan cooperation under AZEC. The entire project includes the Legok Nangka waste-to-energy project, the Development of Sustainable Aviation Fuel (SAF), and the Sarulla PLTP along with the electricity transmission project from Java to Sumatra.

“Several other projects that have been included in category 1, namely Legok Nangka waste to energy, then Sustainable Aviation Fuel and Sarulla Geothermal Power Plant are also included in those that will be financed, namely the transmission line from Java to Sumatra and this is expected to enter the commercial stage and the visit of the former Prime Minister confirms the strong commitment of Indonesia and Japan to work together in a sustainable and low-carbon future,” said Airlangga.

May 5, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250505143853-4-631032/deal-jepang-pastikan-biayai-pembangkit-panas-bumi-rp82-t-di-sumbar)

President Prabowo Subianto brought a series of ‘souvenirs’ after conducting working visits to various countries a week ago. Prabowo visited the United Arab Emirates, Turkey, Egypt, Qatar, and Jordan. Several economic agreements were souvenirs that Prabowo brought from his series of visits.

1. Agreement in the Defense Industry

Prabowo said that Indonesia wants to participate in the development of advanced combat vehicles with Turkey. Prabowo conveyed this desire during a bilateral meeting with Turkish President Recep Tayyip Erdogan. Initially, Prabowo explained that Indonesia and Turkey already had a joint venture agreement to form a defense company.

“We also have an agreement to create an important joint venture between strategic defense companies between our two countries. We are very grateful,” Prabowo explained in a joint press statement after a bilateral meeting with Erdogan, broadcast virtually, Thursday (10/4/2025).

Through this cooperation, Prabowo stated that Indonesia wants to participate in developing advanced KAAN fighter jets and submarines with Türkiye.

“Indonesia wants to participate in the cooperation in developing the fifth generation KAAN fighter jet and also in the development of submarines with the Turkish industry,” said Prabowo.

Still on Turkey, Prabowo also invited Turkish entrepreneurs to build the battery industry, renewable energy, and textile industry. Indonesia will also open the red carpet to carry out infrastructure development in Indonesia.

2. Investment of IDR 33 Trillion with Danantara

During his safari in the Middle East, Prabowo also received a large investment commitment from Qatar. He said, the Emir of Qatar Sheikh Tamim Bin Hamad Al-Thani wanted to invest in a project with the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara).

The number one person in Indonesia stated that the Emir of Qatar would invest US$ 2 billion or IDR 33.4 trillion (exchange rate of IDR 16,700) with Danantara. The investment was made by combining one joint fund between the two parties.

“I think the meeting was very good, productive, we agreed to increase cooperation. He (the Emir of Qatar) will invest with Danantara. One joint fund, he committed US$ 2 billion, yes,” Prabowo explained when giving a press statement after the meeting, quoted Monday (14/4/2025).

Unfortunately, Prabowo did not specify what projects would be invested in with Danantara. He only emphasized that this would be followed up immediately. In Qatar, Prabowo also strengthened bilateral cooperation through the establishment of a Strategic Dialogue (SD) mechanism which is held annually at the level of the Minister of Foreign Affairs. This Strategic Dialogue aims to encourage more intensive cooperation in various strategic fields. Among them are politics, international and regional issues, defense and security, economy and energy, agriculture and food security, tourism, science and technology, health, sports, youth, protection of Indonesian Migrant Workers (PMI), and collaboration in various multilateral forums.

3. Cheap Fertilizer Raw Materials

During a visit to Jordan, Prabowo said that Indonesia would become a regular buyer of fertilizer raw materials from that country. According to him, everything from phosphate to potash can be obtained at a low price in Jordan. This was stated by Prabowo after meeting with King Abdullah II in Amman, Jordan. According to Prabowo, in the discussion with King Abdullah II, there were many commitments to increase cooperation between the two parties.

“Yes, we discussed increasing cooperation in several fields, education, science, technology, economy,” said Prabowo in a press statement broadcast on the Presidential Secretariat YouTube account, Tuesday (4/15/2025).

Prabowo also praised Jordan for making great progress in agricultural technology. Indonesia also wants to learn a lot from there. He introduced the Minister of Agriculture Amran Sulaiman during a bilateral meeting. Amran sat with Prabowo and other delegates at a long table facing King Abdullah II and his delegates. This cooperation is expected to advance the agricultural sector in Indonesia.

April 16, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7870502/kado-prabowo-usai-dari-turki-yordania)

Two Indonesian airports are among the world’s best airports according to Skytrax. Among them are Soekarno-Hatta International Airport (CGK) and I Gusti Ngurah Rai International Airport (DPS). The best airports according to Skytrax were selected based on a survey conducted on 13 million air transport users from more than 100 countries at 565 airports worldwide in the period August 2024 – February 2025. Passengers surveyed were asked to rate the airport based on their experience at airport service points, starting from check-in, arrival, transfer, shopping, security checks, immigration, to departure.

President Director of PT Aviasi Pariwisata Indonesia (Persero) or InJourney Maya Watono said that Soekarno-Hatta Airport has successfully risen to 25th place from 28th place in the World’s Top 100 Airports 2025 category. Not only that, but Indonesia’s pride airport also achieved 3rd place in the Best Airports 2025 by Size (50 to 60 Million Passengers) category and is in 9th place for Best Airports in Asia 2025.

In terms of service, Soekarno-Hatta International Airport is among the best by achieving 10th place for Best Airport Staff in Asia 2025 and 10th place in World’s Best Airport Immigration Services 2025.

“In recognition of the improvement in the quality of its services, Soekarno-Hatta International Airport has also achieved Certified 4 Star Airport Rating 2025 status, after maintaining its 3 Star Airport predicate since 2013,” he said in a written statement, Friday (11/4/2025).

Maya added that I Gusti Ngurah Rai International Airport also recorded positive achievements in the 2025 world airport awards. In the World’s Top 100 Airports 2025 category, this airport managed to rise two ranks, from 74th to 72nd. Then, I Gusti Ngurah Rai Airport won recognition as one of the best regional airports in Asia by ranking 6th in the Best Regional Airports in Asia 2025 category.

“Airport transformation is a very important process for the development of Indonesia’s aviation and tourism industry. Airports as the face of the nation must have good quality of service so that they give a beautiful impression when people first visit Indonesia,” he said.

Furthermore, Maya said that the transformation process at 36 under the management of InJourney Airports will also continue to be carried out with the aim of improving services to passengers. The transformation is carried out fundamentally, covering aspects of premises, processes, and people, and is supported by the implementation of technology as an enabler.

April 11, 2025, detikFinance

(https://finance.detik.com/infrastruktur/d-7863957/2-bandara-ri-masuk-daftar-100-terbaik-dunia-soetta-di-peringkat-25)