Tag: regional investment

President Prabowo Subianto on Monday inaugurated the Refinery Development Master Plan (RDMP) project in Balikpapan, East Kalimantan, marking a major milestone in Indonesia’s efforts to reduce fuel imports and strengthen energy independence.

The Balikpapan RDMP is a National Strategic Project (PSN) undertaken by PT Kilang Pertamina Balikpapan (KPB), a subsidiary of PT Kilang Pertamina Internasional (KPI), the processing and petrochemical subholding of state-owned energy company PT Pertamina (Persero).

Energy and Mineral Resources Minister Bahlil Lahadalia said the project would significantly cut Indonesia’s reliance on imported fuel. With an investment of US$7.4 billion, or around IDR 123 trillion, the RDMP has increased crude oil processing capacity by 100,000 barrels per day (bpd). The Balikpapan refinery now has a total processing capacity of 360,000 bpd, up from 260,000 bpd previously, making it the largest oil refinery in the country.

“This project, with an investment of US$7.4 billion or IDR 123 trillion, is Indonesia’s largest RDMP. We are increasing production from 260,000 barrels to 360,000 barrels per day, moving toward EURO V fuel standards and net zero emissions,” Bahlil said at the inauguration ceremony.

He explained that the operation of the Balikpapan RDMP would reduce gasoline imports by boosting domestic production by 5.8 million kiloliters per year. Indonesia’s current gasoline consumption stands at around 38 million kiloliters annually, while domestic production is about 14.25 million kiloliters.

“With the additional 5.8 million kiloliters, gasoline imports will fall to around 19 million kiloliters per year,” Bahlil said, adding that the project would save approximately IDR 60 trillion in foreign exchange.

The RDMP is also expected to significantly reduce diesel fuel imports. Combined with the mandatory biodiesel blending programs of 40 percent (B40) and 50 percent (B50) this year, Indonesia is projected to eliminate diesel imports and potentially achieve a surplus.

“Our total diesel demand is about 38 million metric tons. With B40 and B50, we add around 5 million metric tons. This means imports can be fully covered, and we may even see a surplus of around 1.4 million metric tons,” Bahlil said.

Pertamina President Director Simon Aloysius Mantiri said the Balikpapan RDMP is an integrated upstream-to-downstream oil and gas project. Key components include a 78-kilometer refinery fuel gas pipeline from Senipah to Balikpapan, the construction of a Residual Fluid Catalytic Cracking (RFCC) unit and upgraded facilities to meet EURO V fuel standards.

“The heart of the RDMP is the RFCC, which allows residues that were previously unprocessed to be converted into valuable products,” Simon said.

Additional facilities include fuel storage terminals with a combined capacity of 125,000 kiloliters, four marine piers, and expanded crude oil storage at Lawe-Lawe, increasing capacity from 5.6 million barrels to 7.6 million barrels. With the project now operational, the Balikpapan refinery has overtaken the Cilacap refinery, which has a capacity of 348,000 bpd, to become Indonesia’s largest oil refinery.

January 12, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20260112173931-4-701737/breaking-kilang-terbesar-diresmikan-prabowo-ri-kurangi-impor-bbm)

Indonesia’s economy remains on solid footing this year, supported by macroeconomic discipline, policy consistency, and investment-driven growth, according to IQI Global Chief Economist Shan Saeed.

“Indonesia demonstrates a combination rarely found in large emerging markets: fiscal discipline, monetary policy credibility, and a clear long-term investment strategy. Macroeconomic stability is now Indonesia’s competitive advantage,” Shan said on Tuesday (Dec. 30, 2025).

Shan noted that international institutions increasingly recognize Indonesia as one of the emerging markets with the strongest structural resilience. Over recent years, the country has shown continuous improvements in investment efficiency, policy transmission, and institutional credibility compared with peers in the region. These factors, he said, underpin Indonesia’s capacity to absorb economic shocks while maintaining steady growth.

From a leadership perspective, Shan highlighted President Prabowo Subianto’s role in reinforcing macroeconomic foundations. “The president’s emphasis on fiscal prudence, credible monetary policy, and long-term investment strategies has strengthened confidence in the medium-term economic outlook,” he said.

Shan also stressed the social dimensions of Indonesia’s economic strategy. Increased female labor force participation, improvements in human resource development, and strategic downstream reforms in key sectors are strengthening the economy’s long-term prospects. “Women’s education is seen as a catalyst with the potential to reshape the future of the national economy,” he explained, noting that these measures help build a more inclusive and resilient workforce.

Looking ahead, Shan said Indonesia’s combination of macroeconomic stability and strategic reforms positions the country as a rising economic power in the ASEAN region. Over the next 12 to 18 months, sovereign economic stability is expected to translate into a competitive advantage, attracting both domestic and foreign investment.

“The commitment to national stability and progress is not merely a policy, but a vision that consistently shapes the direction of Indonesia’s future prosperity,” Shan said.

Analysts point out that Indonesia’s investment-driven approach, backed by credible fiscal and monetary frameworks, makes it an attractive destination for long-term investors. The emphasis on infrastructure, energy, and downstream industrial development is expected to sustain growth momentum while strengthening the country’s position in the regional economic hierarchy. With these measures, Indonesia is not only weathering global economic uncertainties but also building the foundation for sustained growth and inclusive development, leveraging its macroeconomic credibility as a strategic advantage in ASEAN and beyond.

December 30, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20251230062946-4-698147/ekonom-iqi-global-fondasi-makro-ri-semakin-kokoh-kredibel)

Bali has recorded a decline in domestic tourist arrivals this year as local travelers increasingly opt for alternative and closer destinations, according to provincial officials. Bali Governor I Wayan Koster said domestic tourist numbers were projected to fall from 10.1 million last year to 9.2 million by Dec. 31. As of Dec. 22, the island had recorded only 9.1 million domestic arrivals. He attributed the decline primarily to a reduced number of domestic flights to Bali. Several aircraft operated by national flag carrier Garuda Indonesia and its low-cost subsidiary Citilink are currently undergoing maintenance, limiting flight availability to the island, Koster said.

“This is one of the factors behind the decline in domestic tourist visits to Bali. The number of available flights is decreasing, but the seats remain fully booked,” Koster said on Sunday, as quoted by state news agency Antara.

Data compiled by the Bali provincial administration from I Gusti Ngurah Rai International Airport show that Garuda Indonesia has reduced the number of aircraft serving Bali from 11 to nine. Citilink has cut its fleet serving the island nearly in half, from 11 aircraft to six, also due to maintenance.

“That’s why flights to Bali are always full, making it difficult for people who want to fly to Bali because of the limited number of flights,” Koster added.

He also noted a shift in domestic travel preferences, with many Indonesian tourists most of whom originate from Java choosing destinations closer to home. Improved infrastructure, including toll roads that enhance road connectivity, has made travel to destinations within Java more convenient, he said.

Despite the decline in domestic arrivals, Koster stressed that Bali remained busy overall, supported by a strong rebound in international tourism. The island expects an additional 700,000 foreign visitors by the end of the year. Inbound tourism to Bali had increased by 600,000 visitors as of Dec. 26 and is projected to reach 7.05 million arrivals by year-end.

“This will have a significant impact on economic activity. So, if you say that Bali is quiet, the data says otherwise. In fact, it is quite busy,” Koster said.

Tourism Minister Widiyanti Putri Wardhana also acknowledged the decline in domestic tourism to Bali, noting that public perceptions particularly regarding weather conditions have influenced travel decisions. She emphasized that the drop was not due to Bali losing its appeal.

“Bali is not quiet. It remains busy, but with only a slight 2 percent decrease [in domestic tourism],” Widiyanti said on Friday, as quoted by Kompas.com. She added that destinations in Java, including Yogyakarta, have seen a rise in domestic visitor numbers.

The decline in domestic arrivals to Bali contrasts with Indonesia’s broader tourism trend, which has reached a record high this year. The Tourism Ministry reported that domestic trips nationwide rose 18.89 percent year on year to 997.91 million as of October and are projected to reach 1.21 billion by the end of the year, surpassing the pre-pandemic level of 722 million trips recorded in 2019. Foreign tourist arrivals to Indonesia are expected to reach 15.31 million by year-end, continuing a steady recovery since 2021 but still below the pre-pandemic peak of 16.1 million visitors recorded in 2019.

December 29, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/12/29/bali-sees-dip-in-domestic-tourists-pins-hopes-on-foreign-visitors.html)

Indonesia has signed a free trade agreement (FTA) with the Eurasian Economic Union (EAEU) as part of efforts to diversify exports and strengthen its foothold in a “nontraditional market” of nearly 200 million people. The agreement is expected to expand Indonesia’s access to Armenia, Russia, Belarus, Kyrgyzstan and Kazakhstan, among other Eurasian countries. Designed to provide a comprehensive legal framework and greater certainty for businesses, the pact comes amid strong growth in bilateral trade between Indonesia and the EAEU bloc. In 2024, total trade between Indonesia and the EAEU reached US$4.52 billion, with an average annual growth rate of 21.45 percent over the past five years. The government aims to double this trade volume by leveraging the agreement to reduce dependence on traditional export markets.

Trade Minister Budi Santoso expressed optimism about the deal, saying it would “establish a strategic foundation to boost trade, investment and diverse forms of mutually beneficial economic cooperation.” He added that closer commercial ties between businesses and relevant stakeholders would be critical to ensure the agreement’s swift and effective implementation.

During a meeting with Eurasian Economic Commission (EEC) Trade Minister Andrey Slepnev in St. Petersburg on Sunday, Budi proposed the establishment of an Indonesia-EAEU Business Council to facilitate communication and strengthen linkages between private sector players from both sides.

Slepnev described Indonesia as a strategic partner for the EAEU, citing the country’s strong economic growth in recent years. He said the commission viewed the FTA as a key instrument to develop a mutually beneficial trade market, particularly in expanding market access and acquiring and utilizing new technologies.

Djatmiko Bris Witjaksono, director general of international trade negotiations at the Trade Ministry, said the agreement marked a strategic step in expanding Indonesia’s market access to prospective nontraditional regions. He added that businesses were expected to begin benefiting from the pact by the end of 2026 or, at the latest, in 2027, in line with Indonesia’s broader push to finalize a series of trade agreements with international partners.

Several Indonesian export sectors are expected to benefit from the deal. Officials highlighted strong potential for palm oil and its derivatives, agricultural commodities such as coffee, tea, cocoa and spices, as well as automotive components and spare parts. The automotive segment is seen as particularly promising following the withdrawal of some European firms from the Russian market. The fisheries sector, especially shrimp, processed seafood and tuna, also offers significant opportunities, although challenges remain, including the need to secure export approvals for Indonesian fishery products.

Beyond market access, the FTA is expected to deepen sector-specific cooperation. State-owned pharmaceutical firm PT Bio Farma has established partnerships with EAEU members, including vaccine exports to Kyrgyzstan through UNICEF and joint research initiatives with Russia. The company is also exploring collaboration with Belarus, including plans for polio vaccine registration and the development of multivalent vaccines.

December 23, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/12/23/ri-inks-trade-deal-with-eaeu-eyes-eurasian-market-expansion.html)

BUMA Australia Pty Ltd, a subsidiary of Indonesian mining firm PT BUMA Internasional Grup, has secured a multi-year contract extension worth AU$740 million (US$493.4 million) with Blackwater Operations Pty Ltd, part of Australian coal producer Whitehaven Coal Mining Limited. The extension secures BUMA Australia’s continued operations at the Blackwater Mine in Central Queensland’s Bowen Basin, one of Australia’s largest open-cut metallurgical coal operations. Under the agreement, the company will provide pre-strip mining services through June 2030. Unlike thermal coal, which is primarily used for electricity generation, metallurgical coal is a key raw material in the steelmaking process.

“This extension underscores Whitehaven’s confidence in BUMA Australia to deliver safely and efficiently at scale across one of Queensland’s largest metallurgical coal operations,” BUMA Australia chief executive Johan Ballot said in a statement on Monday.

The Blackwater Mine is located in the Bowen Basin, one of Australia’s most productive coal regions. Spanning an approximately 80-kilometer strike length across multiple pits, the mine supplies premium metallurgical coal to international steelmakers, particularly in Asia. Its scale and geological complexity require extensive pre-strip activities to ensure safe and efficient access to coal seams.

BUMA Australia has operated at the Blackwater site since 2012 through its predecessor operations and continues to play a central role in large-scale mining activities across multiple pits. The company currently employs around 390 permanent workers at the site, with most of the workforce drawn from the surrounding Central Queensland region.

Established in 1990, BUMA Internasional Grup operates across four core business pillars: mining services, mine ownership, technology development, and social enterprise. The group has operations in Indonesia, Australia, and the United States and employs more than 13,000 people globally. Its mining services arm is anchored by PT Bukit Makmur Mandiri Utama, one of the largest mining services providers in Indonesia and Australia.

The group expanded into mine ownership in 2024 with the acquisition of Atlantic Carbon Group Inc., positioning itself as a producer of ultra-high-grade anthracite in the United States. That same year, it entered into a binding agreement with US-based Peabody Energy Corporation to acquire a 51 percent stake in the Dawson Complex, a major Australian metallurgical coal mine, for US$455 million. The deal includes US$355 million in upfront cash, with the balance payable over four years.

The Dawson Complex produces more than 8 million tonnes of coal annually and has confirmed reserves supporting more than 20 years of operations, with additional resources extending its potential lifespan to over 50 years.

BUMA Internasional Grup has also expanded into future-facing commodities by acquiring a stake in 29Metals Limited, an Australian-based copper and base metals producer, and investing in AIM-listed Asiamet Resources Limited for its flagship BKM Copper Project in Central Kalimantan.

The group’s portfolio further includes PT Bukit Teknologi Digital (BTech), which focuses on developing deep-learning technologies to improve operational efficiency, reduce emissions, and mitigate occupational health and safety risks.

December 23, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/12/23/indonesias-buma-lands-493m-extension-at-australian-coal-mine.html)

Indonesia has launched its first direct export of frozen durian to China, shipping 48 tonnes of the commodity worth IDR 5.1 billion (US$305,000) on Monday. The products, processed in West Java, departed from Tanjung Priok Port in North Jakarta and are destined for Qingdao Port in China.

“This marks the culmination of a long series of processes that took a considerable amount of time and required substantial resources,” said Sahat M. Panggabean, head of the Agricultural Quarantine Agency (Barantin), on Monday. He added that the preparation process took nearly two years to complete.

Barantin said the export was driven by market observations indicating strong demand among Chinese consumers for durian with distinctive taste profiles, a niche Indonesia believes it can fill. Until now, China has largely relied on durian supplies from neighboring countries such as Malaysia, Thailand, Vietnam, and the Philippines. Indonesian exporters, meanwhile, have mainly acted as upstream suppliers to these countries, which then process, package, and re-export the products to China.

To shift this pattern, Barantin initiated government-to-government discussions with China’s General Administration of Customs (GACC). The talks resulted in China issuing a draft export protocol for Indonesian frozen durian, which was later finalized and signed on May 25 by Sahat and GACC Minister Sun Meijin, paving the way for direct shipments.

Acting Deputy for Plant Quarantine Drama Panca Putra said traceability was one of the most critical aspects of the export approval process, particularly for frozen durian packing houses. To date, eight facilities have met the requirements to be designated as Export-Oriented Quarantine Installations (IKT). These packing houses are authorized to conduct visual plant health inspections and serve as export hubs for frozen durian shipments to China. Seven of the facilities are located in Central Sulawesi, while one is in Bogor, West Java. All are registered under China’s Import Food Enterprise Registration system.

Secretary General of the Indonesian Durian Plantation Association (Apdurin) Aditya Pradewo said business players have welcomed the opening of the Chinese market. “The Chinese market is a giant cake for durian exporters,” he said, noting that China’s annual durian demand is valued at around IDR 128 trillion (US$8 billion).

With premium varieties such as Bawor, Super Tembaga, and Namlung, Indonesia is targeting a 5 to 10 percent share of the Chinese market, which could generate between IDR 6.4 trillion and IDR 12.8 trillion in foreign exchange earnings annually. Aditya added that direct exports significantly reduce logistics costs and improve margins, as durian prices in China are currently five to seven times higher than domestic prices.

Durian business player Muchlido Apriliast, owner of PT Zarafa Ridho Lestari, echoed this view, saying Indonesian exporters previously routed frozen durian shipments through Thailand at a cost of around US$18,000 per container. Under the new protocol, direct exports have reduced logistics costs to between US$10,000 and US$11,000 per container, resulting in savings of roughly US$8,000 per shipment.

Under the protocol, exportable frozen durian products include pulp, puree, and whole durian derived from fresh, ripe Indonesian fruit that has undergone quick freezing. Barantin data show Indonesia exported 10,162 tonnes of durian between January and November 2025. Major destinations included Thailand (6,003 tonnes), China (2,574 tonnes), and Malaysia (1,532 tonnes), with smaller shipments sent to Hong Kong, Germany, and other markets.

December 16, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/12/16/indonesia-sends-first-direct-shipment-of-frozen-durian-to-china.html)