Markets and Finance
Market tumbles after Sri Mulyani ousted in a cabinet reshuffle
The Indonesian financial markets took a sharp dive on Monday, September 8, 2025, following President Prabowo Subianto’s decision to remove Sri Mulyani Indrawati from her long-held position as Finance Minister, triggering widespread investor concern over the country’s fiscal trajectory.
Government-BI agree on burden-sharing to fund housing, village cooperatives
The government and the Indonesian Central Bank (BI) have agreed on a new burden-sharing mechanism to support priority programs under President Prabowo Subianto’s Asta Cita agenda, in particular the Public Housing Program and the Red-and-White Village Cooperatives initiative.
Economists warn of risks as BI ramps up bond purchases to support Prabowo’s agenda
The Indonesian Central Bank (BI) has purchased Rp200 trillion (US$12.9 billion) worth of government bonds as of early September to support President Prabowo Subianto’s Asta Cita economic programs, but economists are warning of potential long-term risks to monetary credibility and market stability.
Government boosts spending to Rp694 T amid calls for fiscal reform
Coordinating Minister for the Economy, Airlangga Hartarto, has pledged to accelerate government spending of at least 25 percent of the state budget, or Rp694 trillion (US$44.77 billion) in an effort to boost consumption and stabilize the economy amid ongoing unrest and rising unemployment.
Rupiah rebounds after protests, BI steps in with stabilization measures
The rupiah came under pressure during Friday, August 29, 2025 protests, weakening to Rp16,509 per US dollar, but gradually recovered and closed stronger on Monday, September 1, 2025 afternoon at Rp16,428 per dollar after opened Rp16,259 per dollar earlier in the day.
Massive protests carry significant economic opportunity costs, Expert warns
Mass demonstrations inevitably impose opportunity costs on the economy, ranging from lost work hours to disrupted logistics and delayed daily transactions, according to Syafruddin Karimi of the Department of Economics, Andalas University.
Indonesia wins WTO dispute against EU over palm oil
The World Trade Organization (WTO) has ruled in favor of Indonesia in its trade dispute against the European Union (EU) over countervailing duties imposed on palm oil-based biodiesel products.
Telkom launches AI center of excellence, opens door for collaboration with Indosat
State telecommunications company PT Telkom Indonesia has launched its AI Center of Excellence (AI CoE) as a hub for artificial intelligence development and cross-sector collaboration following Indosat Ooredoo Hutchison’s introduction of a similar national AI CoE in July.
Indonesia to finalize national AI roadmap, ethics framework to be first priority
The Ministry of Communication and Digital Application (Komdigi) is set complete the public consultation phase of its national artificial intelligence (AI) roadmap on Friday, August 29, 2025.
RI-U.S. reciprocal tariff deal faces delay, local commodities seek exemptions
The Ministry of Trade has signaled that the signing of a reciprocal tariff agreement between Indonesia and the United States will be delayed beyond the earlier target date of next week, Monday, September 1, 2025, with one key issue under negotiation is the exemption of import duties for certain Indonesian local commodities entering the U.S. market.
U.S. agrees in principle to lift tariffs on Indonesian palm oil, cocoa, rubber
The United States has agreed in principle to exempt Indonesian palm oil, cocoa, and rubber from a 19 percent import tariff imposed under President Donald Trump’s trade measures earlier this month, said Coordinating Minister for the Economny Airlangga Hartarto on Tuesday, August 26, 2025.
Global AI market to hit US$1.4 T in four years, energy demand set to double
The global artificial intelligence (AI) market is projected to surge from its current value of around US$400 billion (Rp6,500 trillion) to US$1.4 trillion within the next four years, according to data from the University of Oxford.