#Economics
BGN chief: Budget absorption target to reach US$1.75 billion by end of year
Head of the National Nutrition Agency (BGN), Dadan Hindayana, has confirmed that the government’s budget absorption for nutrition-related programs is on track to reach the Rp27.1 trillion (US$1.75 billion) target by the end of 2025.
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.
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.
Investment ministry backs digital finance innovation at Bali Conference
Deputy Minister of Investment and Downstreaming/Deputy Head of Investment Coordinating Board (BKPM), Todotua Pasaribu, voiced strong government support for investment and innovation in digital finance during the CFX Crypto Conference (CCC) 2025 held at Nuanu Creative City, Bali.
Gas-fired power plants expansion could “cost Indonesia up to Rp155.8 T yearly”
Indonesia’s plan to increase its gas-fired power plant capacity by up to 10.3 gigawatts (GW) in the 2025-2034 Electricity Supply Business Plan (RUPTL) could impose a staggering cost of up to Rp155.8 trillion (US$9.6 billion) per year, while exacerbating the country’s dependence on gas imports and hindering the nation’s energy transition.
GIIAS 2025 sees record attendance, yet weaker sales amid economic pressure
The 2025 Gaikindo Indonesia International Auto Show (GIIAS) ended with a record-breaking number of visitors but lower sales transactions compared to the previous year.
Activist challenges government commitment amid ambitious economic plans
Deputy for Energy and Mineral Resources Coordination at Indonesia’s Coordinating Ministry for Economic Affairs, Elen Setiadi, stated that the government’s ambitious Asta Cita framework aligns with its environmental sustainability goals. “Industrial development and economic growth for public welfare and food security are in harmony. It’s about balancing growth with environmental preservation,” Elen said during the Indonesia Net-Zero Summit 2025 in Jakarta on Saturday, July 26, 2025.
Danantara asked to prioritize real sector, strategic industries to boost economy
Indonesia’s sovereign wealth fund BPI Danantara is suggested to focus on long-term, real sector investments to maximize its contribution to national economic growth as the fund's strength lies not only in the volume of capital raised, but also in how strategically that capital is deployed.
Economist slams Trump’s 32 percent tariff as unfair, calls for zero tariff deal
Economist Syafruddin Karimi of Andalas University strongly criticizes U.S. President Donald Trump's decision to impose a 32-percent reciprocal tariff on Indonesian exports, calling it damaging and unfair.
House approves 2026 economic growth target of 5.2–5.8 percent
Finance Commission XI of the House of Representatives (DPR) has approved the government's proposed 2026 economic growth target, setting the figure between 5.2 and 5.8 percent, higher than the 5 percent projected for 2025.
Middle East conflict pushes oil prices higher, shakes economic fundamentals
Minister of Finance Sri Mulyani Indrawati has sounded the alarm over rising geopolitical tensions in the Middle East, warning that the ongoing conflict between Iran and Israel has begun to reverberate through the global economy with oil prices surging and market volatility rising.
World Bank poverty line revision classifies 68.3 percent of Indonesians as poor
The World Bank has introduced a new global poverty threshold for upper-middle-income countries (UMICs), classifying Indonesians earning below US$8.30 (about Rp135,000) per day in 2021 PPP per month as poor and therefore suggesting 68.3 percent of the country’s population falls under the poverty line.