#Economics
Taxing landed houses will hurt middle-class dreams: Expert
An economist has criticized a recent proposal to increase taxes on landed houses (rumah tapak) as the policy could crush the housing aspirations of Indonesia’s middle- and lower-income citizens.
“Sumitronomic” still relevant amid today’s challenges: Experts
Experts have emphasized that the economic framework developed by Prof. Soemitro Djojohadikoesoemo − known as “Sumitronomic” − is still relevant amid today’s global geopolitical and economic challenges.
Indonesia’s May deflation signals deeper economic anxiety: Economist
Indonesia’s deflation of 0.37 percent in May is not a sign of economic strength but rather a warning of weakening consumer confidence and sluggish household spending, an Economist has warned.
Indonesia seeks real investment commitment as downstream policy bears fruit
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reaffirms Indonesia’s commitment to its downstream industrial policy, urging foreign investors to move beyond proposals and deliver concrete commitments to support the country’s ambitions in value-added mineral processing and clean energy.
Income stagnation undermines purchasing power: CORE Indonesia
Amid relatively stable inflation, Indonesia’s declining purchasing power is being primarily driven by stagnating income levels, according to Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE) Indonesia.
Beverage industry calls for policy synergy amid economic slowdown
The Indonesian soft drink industry has called for coordinated policy measures to maintain sectoral stability in 2025, as early signs of an economic slowdown and weakening consumer demand pose significant challenges to the food and beverage sector.
U.S. tariff policy threatens Indonesian competition, SMEs: KPPU
The Business Competition Supervisory Commission (KPPU) has raised concerns over the economic impact of the United States' new 32 percent reciprocal import tariff on Indonesian goods, warning that the policy could severely disrupt domestic competition and threaten small and medium enterprises (SMEs).
Indonesia's Q1 GDP growth slows to 4.87 percent
Statistics Indonesia (BPS) reveals that the country’s economy grew by 4.87 percent year-on-year (yoy) in the first quarter (Q1) of 2025, apparently the slowest growth pace since Q3 2021 and a decline from 5.11 percent in the same period last year.
South Korean Dongsung Chemical commences operations in Indonesia
South Korean investors’ interest in Indonesia has apparently remained strong, marked by the official opening of Dongsung Chemical’s new polyurethane (PU) production facility in Karawang, West Java, on Wednesday, April 30, 2025.
Deputy minister inspects downstream industry companies in Palu SEZ amid US$10.16 B target
In a push to meet Indonesia’s ambitious investment realization target of US$10.16 billion (Rp162.57 trillion) in Central Sulawesi this year, Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, visited the Palu Special Economic Zone (SEZ) to review key industrial sites and hold high-level meetings with local government leaders.
Relaxation of TKDN rules could turn Indonesia into a dumping ground: Gapensi
The Indonesian Construction Contractors Association (Gapensi) has warned that the government's move to relax the Domestic Component Level (TKDN) policy, particularly for steel, iron, and piping used in infrastructure, could reduce Indonesia to a mere market for foreign products and threaten local industries.
Prabowo and Macron forge stronger Indonesia-France partnership
President Prabowo Subianto and French President Emmanuel Macron have agreed to maintain strong bilateral economic and trade cooperation, a commitment made during a telephone conversation on Friday, April 4, 2025.