Indonesia's economic and financial news covers a wide range of issues, from export targets and stock market volatility to growth forecasts and public finance oversight.

Nestlé and trade ministry aim for US$557 million in farm exports

Nestlé and the trade ministry have set a three-year target of US$557 million in agricultural exports. The goal is to strengthen Indonesian supply chains, support local farmers and bring domestic products to more global markets.

MSCI downgrade threat rattles stocks

A proposed reclassification of Indonesia by MSCI has unsettled investors. The Jakarta Composite Index fell 8.01% at the market open on Friday, triggering a 30-minute trading halt before trading was set to resume at 9:30 a.m. Jakarta time. Billions of dollars in foreign investment could be at risk if the downgrade goes ahead.

Indonesia looks to South Asia for palm oil sales

The trade ministry is seeking wider market access for crude palm oil (CPO) in South Asia, with India and Pakistan as targets. Palm oil exports are rising, and India remains a key source of Indonesia's trade surplus.

Regulatory hurdles hold back 12.3 million businesses

According to the Prasasti Center, 12.3 million local businesses are struggling to grow, even where they have access to credit. Overlapping rules, informal fees and a shortage of skilled labor are preventing them from scaling up and contributing more to economic growth.

IMF lifts 2026 growth forecast

The International Monetary Fund has raised its 2026 growth forecast for Indonesia from 5% to 5.1%. It also expects inflation to climb to 3.3% before easing next year.

Government reaffirms 3% deficit ceiling

Indonesia's deputy finance minister reaffirmed the 3% budget deficit ceiling in a meeting with the World Bank president. He highlighted the limit, strategic development priorities and deeper financial sector development as key pillars of economic growth.

Audit Board questions Semen Indonesia's Vietnam cement deal

Indonesia's Audit Board has flagged a Rp643.95 billion loss linked to Semen Indonesia's acquisition of Thang Long Cement Company in Vietnam. The agency questioned how the deal was valued, citing financial risks, weak performance and concerns about the company's ability to continue operating.

Electricity subsidies pose Rp61.48 trillion in potential fiscal risk

The Audit Board has also identified Rp61.48 trillion in potential fiscal risks tied to electricity subsidies. Its recurring findings point to gaps in subsidy eligibility criteria and delays in adjusting tariffs for nonsubsidized customers. The board warned that this weakens how subsidies are targeted and adds pressure on state finances.

IDX widens review of concentrated shareholdings

The Indonesia Stock Exchange (IDX) has lowered the market capitalization threshold for high shareholding concentration (HSC) reviews from Rp10 trillion to Rp5 trillion. The change expands oversight as part of efforts to improve market transparency and protect investors. Analysts, however, warn it could bring short-term selling pressure.