Category: Goverment

Finance Minister Suahasil Nazara emphasized that Indonesia’s economic fundamentals continue to support investor confidence amid global uncertainty. The government is targeting economic growth of 6% by 2027, with investment serving as a key driver. Suahasil conveyed this message at the Ministry of Finance’s Investor Meeting with Bank Indonesia and Danantara, organized by Deutsche Bank in Thailand on October 13, 2026. He explained that investor confidence is underpinned by the credibility of the State Budget (APBN), macroeconomic stability, and coordinated fiscal and monetary policies.

From a domestic economic perspective, Indonesia’s inflation rate stood at 3.3% at the end of September 2026, while the manufacturing Purchasing Managers’ Index (PMI) remained in expansionary territory at 52.4. The country’s trade balance also recorded another surplus, reflecting positive developments in the external sector. Nevertheless, the government remains vigilant about global risks, including fragmentation in world trade, commodity price volatility, and elevated global interest rates, all of which could affect the domestic economy. Amid these challenges, Suahasil reaffirmed the government’s commitment to maintaining fiscal discipline and keeping the state budget deficit below 3% of gross domestic product (GDP).

According to Suahasil, fiscal policy must remain flexible enough to respond to economic pressures without compromising the fiscal space needed to address future challenges. “Fiscal policy must be able to respond to various pressures, whether from geopolitics, trade, market volatility, or domestic prices, without eroding fiscal buffers for the future,” he said, as quoted on Thursday (October 15, 2026).

The government, he added, is seeking to balance the need to stimulate economic growth and protect the public with the imperative of maintaining fiscal sustainability. To accelerate growth in 2027, investment has been positioned as one of the main drivers. Under the 2027 State Budget, economic growth is targeted at 6%, while investment is expected to grow by at least 7%. These targets will be supported by closer coordination between fiscal policy, Danantara’s strategic investments, and private sector participation. The government also aims to ensure that incoming investment not only stimulates short-term growth but also strengthens the foundations of the national economy over the long term.

Suminto, Director General of Financing and Risk Management at the Ministry of Finance, added that the government’s efforts extend beyond attracting investment to Indonesia; they also focus on building and sustaining investor confidence. He outlined several measures to maintain market confidence. First, the government seeks to preserve economic credibility, performance, and stability across the fiscal, monetary, and financial sectors while regularly communicating economic conditions and policy directions to investors in a coordinated manner. Second, it aims to uphold market discipline and integrity to support the development of deeper, more active, and more liquid financial markets. Third, it seeks to deepen domestic financial markets by strengthening the participation of institutional and retail investors. These measures are expected to increase liquidity and enhance the resilience of Indonesia’s financial markets amid global volatility.

Through credible state budget management, macroeconomic stability, and a stronger investment ecosystem, the government aims to sustain investor confidence and achieve its national economic growth targets.

October 15, 2026, CNBC Indonesia(https://www.cnbcindonesia.com/news/20261015063709-4-776306/ri-bidik-ekonomi-tumbuh-6-investasi-harus-ngebut-7)

The government continues to sustain Indonesia’s tourism growth while expanding business and investment opportunities. This effort is underpinned by the country’s strong economic performance. Indonesia’s solid economic fundamentals are crucial to developing the tourism sector. In the first half of 2026, the Indonesian economy grew by 5.45%, the highest rate among G20 countries. Inflation remained under control at 3.28% in September 2026, while investment rose by 7.2% to IDR 1,010.6 trillion, with more than half of the investment realized outside Java. Economic growth that has remained above 5% for five consecutive quarters reflects the resilience of domestic demand and sustained investment, both of which support national tourism development.

“For the tourism sector, economic stability is crucial because stronger purchasing power encourages domestic travel, while investment supports infrastructure development, accommodation, and service improvements,” said Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo in a written statement on Thursday (October 15, 2026).

Amid mounting pressures on the global tourism industry, Indonesia’s tourism sector has demonstrated relative resilience. In the first half of 2026, international tourist arrivals worldwide grew by only 0.4%, while the Middle East recorded a 22% decline and Southeast Asia experienced a 1% contraction. In contrast, Indonesia recorded growth of 5.71%. From January to August 2026, international tourist arrivals reached 10.58 million, an increase of 5.38% compared with the same period in the previous year, bringing arrivals close to 99% of pre-pandemic levels. This achievement demonstrates that Indonesia’s tourism recovery is continuing and approaching a significant milestone.

Tourism’s contribution is also reflected in domestic economic growth, foreign exchange earnings, and job creation. Throughout 2025, domestic tourist trips reached 1.2 billion, generating US$18.28 billion in tourism foreign exchange earnings and supporting 25.91 million jobs. The sector contributed 3.97% directly to gross domestic product (GDP), while tourism investment reached IDR 73.55 trillion.

This positive momentum continued into 2026. By August, domestic tourist trips had reached 842.15 million, an increase of 4.29%, while tourism foreign exchange earnings totaled US$8.43 billion in the first half of the year. Investment in the tourism sector also grew by 16.64%, more than double the national investment growth rate. These figures further underscore tourism’s potential to drive job creation, regional development, and inclusive economic growth.

To maximize this potential, the government has positioned tourism as a strategic driver of economic growth, in line with President Prabowo Subianto’s Asta Cita, or Eight Aspirations. For 2026, the tourism sector is targeted to attract 16–17.6 million international tourist visits and contribute 4.5–4.7% to GDP. Achieving these targets requires coordinated policies that stimulate demand while improving the quality of tourism services. To stimulate demand and strengthen connectivity, the government is preparing an economic stimulus package worth IDR 26.34 trillion. The package includes transportation discounts and tax incentives to encourage domestic travel. Additional measures include income tax relief for 552,000 hospitality workers, annual skills development programs for 400,000 tourism workers, and expanded visa access and air connectivity. These initiatives aim to improve the affordability, accessibility, and quality of tourism services.

“We also want to highlight the urgency of innovation and efficiency in Indonesia’s tourism sector. The government will develop an ecosystem that encourages tourism businesses to create innovative products at competitive prices,” Dradjad added.

October 15, 2026, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8709204/pariwisata-andalan-ri-genjot-ekonomi-segini-kontribusinya)

Indonesian President Prabowo Subianto inaugurated downstreaming projects worth US$10.2 billion (IDR 180 trillion) at the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera Regency, North Maluku. The inauguration included the launch of 11 downstreaming projects and the initial export of electric vehicle (EV) batteries. The 11 projects comprise the commercialization of four industrial projects and the groundbreaking of seven new industrial projects, all located within the IWIP area.

“Today, we will launch the initial export of electric vehicle batteries. We will also launch 11 downstreaming projects, consisting of the commercialization of four industrial projects and the commencement of construction of seven new industrial projects in the Weda Bay Industrial Park area,” Indonesian President Prabowo said during the inauguration on Thursday (October 8, 2026).

Prabowo congratulated all parties and stakeholders, both domestic and international, for placing their trust in Indonesia and providing opportunities to work together to build shared prosperity.

“Ladies and gentlemen, what we have achieved over the past few years is truly something to be proud of. Therefore, I hereby reaffirm the Indonesian government’s commitment to respecting and safeguarding all investments made in Indonesia, regardless of their origin,” Prabowo stated.

Minister of Investment and Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani explained that the inaugurated projects are strategic developments within the IWIP area and form part of Indonesia’s broader investment initiatives.

“The total investment will reach US$10.2 billion, or approximately IDR 180 trillion. Of those 10 projects, Mr. President, four have already been completed and have recently held commercial ceremonies. Exports worth US$3.4 billion have also been completed. These downstreaming projects cover various sectors, including nickel-based battery materials, battery production, aluminum electrolytes, and electric heavy equipment,” Rosan explained.

Rosan added that the groundbreaking ceremonies would cover several additional industrial developments, including nickel-based battery materials, EV battery separators, aluminum electrolytes, electric heavy equipment for the mining and industrial sectors, and photovoltaic glass for solar energy applications.

“And this is the first, electric EV batteries, and also aluminum electrolytes, there are two, and also electric-based heavy equipment that will be built for trucks and also mining and also industry, and also photovoltaic glass for industrial solar energy, Mr. President,” Rosan reported.

October 8, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20261008121708-4-774398/sah-prabowo-resmikan-pembangunan-11-proyek-hilirisasi-rp180-triliun)

(https://www.cnbcindonesia.com/news/20261008132552-4-774404/prabowo-ungkap-investasi-di-kawasan-iwip-tembus-us–20-miliar)

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) reported that the downstream sector accounted for approximately 30% of Indonesia’s total investment realization, making it a key driver of national investment growth supported by both domestic and international investors. Minister of Investment and Downstreaming and Head of BKPM Rosan Roeslani emphasized that downstreaming is essential to developing an integrated national industrial ecosystem spanning mining, processing, manufacturing, clean energy, and technology to generate added value and create jobs.

“The downstream industry now contributes around 30% of our total investment and continues to grow strongly, driven by domestic and international investors. Capital is flowing in,” Rosan said at the Indonesia International Sustainability Forum (IISF) 2026 in Jakarta on Tuesday (October 6, 2026).

Indonesia’s strong downstream investment performance is reflected in national investment realization, which exceeded US$120 billion in 2025, representing annual growth of 12.7% and generating employment for 2.7 million people. In the first half of 2026, investment realization reached US$61 billion, an increase of 7.2% year-on-year, and created 1.45 million jobs.

Rosan explained that downstreaming encompasses several areas, including electrification, which covers the value chain from mining and raw material processing to battery production and electric vehicle manufacturing. Indonesia has made progress in this area through battery cell manufacturing facilities involving Hyundai, CATL, and Indonesia Battery Corporation (IBC). According to Rosan, one in six new cars sold in Indonesia is now a battery-powered electric vehicle.

“First, electrification. From mining to battery cells to electric cars. Indonesia is now producing battery cells in two large factories with Hyundai and also with CATL and IBC, our state-owned companies, which began operations in stages in August. Now, one in six new cars sold in Indonesia is fully electric, and more than two-thirds of them are assembled here in Indonesia,” he said.

Separately, Deputy Minister of Investment and Downstreaming Todotua Pasaribu reported that investment realization in the first half of 2026 reached IDR 1,010.6 trillion, equivalent to 49.5% of the annual target of IDR 2,041.3 trillion. Of this amount, investment in downstreaming projects reached IDR 300.1 trillion, accounting for 29.7% of total investment realization and representing a 6.9% increase compared with the same period in the previous year.

According to Pasaribu’s presentation, the minerals sector dominated downstream investment in the first half of 2026, attracting IDR 206.5 trillion. Nickel downstreaming contributed IDR 71.0 trillion, followed by bauxite at IDR 53.8 trillion, copper at IDR 37.4 trillion, iron and steel at IDR 30.2 trillion, and silica sand at IDR 5.9 trillion. The plantation and forestry sector ranked second, with IDR 54.4 trillion in investment, including IDR 29.5 trillion in palm oil and IDR 5.0 trillion in rubber.

Meanwhile, the oil and gas sector attracted IDR 26.4 trillion in petroleum processing investment and IDR 9.0 trillion in natural gas investment. The fisheries and maritime affairs sector recorded IDR 3.8 trillion in downstream investment, covering the processing of commodities such as salt, tuna, skipjack, mackerel, shrimp, and seaweed.

October 6, 2026, CNBC Indonesia(https://www.cnbcindonesia.com/news/20261006130739-4-773745/jadi-tulang-punggung-hilirisasi-sumbang-30-total-investasi-di-ri)

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)