Bank Indonesia decided to maintain the BI Rate at 4.75% at the January 2026 Board of Governors’ Meeting to preserve rupiah stability amid global uncertainty and ensure inflation remains within the 2.5±1% target range. Governor Perry Warjiyo stated that this policy is consistent with the dual objective of stabilizing the currency while supporting economic growth, with room for future rate cuts still open. BI also strengthened policy transmission through pro-market monetary operations and interventions in the spot market, DNDF, and government bond purchases, after having cut rates by a cumulative 125 bps during 2025.
– Republika, 21 January 2026
Ministry of Finance Issues Regulation PMK 1/2026 to Strengthen Tax Incentives for SOE Restructuring
The Ministry of Finance officially issued MoF Regulation No. 1/2026, effective 22 January 2026, to strengthen tax support for the restructuring of state-owned enterprises (SOEs). Key provisions include:
- Expanding the definition of SOEs, including entities with special state rights even without majority direct ownership
- Introducing additional restructuring schemes, such as spin-offs without establishing new entities and combined spin-off–merger structures
- Allowing the use of book value in acquisitions through share transfers involving more than 50% ownership or management control, subject to approval from the Ministry of SOEs
- Introducing a grandfathering clause for prior approvals and a three-year policy evaluation period led by the Directorate General of Taxes together with the Directorate General of Economic and Fiscal Strategy
– Kontan, 24 January 2026
Danantara Targets US$14 Billion Investment in 2026, Focused on Energy and Food Security
Danantara Indonesia targets investment deployment of up to US$14 billion in 2026, up from around US$8 billion the previous year, primarily funded by SOE dividends and supported by additional Patriot Bond issuances. CIO Pandu Patria Sjahrir stated that investment priorities over the next 12–24 months include renewable energy and energy transition, digital infrastructure, healthcare services, and food security, with around half of the funds allocated to domestic public markets. Danantara also emphasizes strengthening governance and credibility, supported by a BBB credit rating from Fitch and global partnerships worth US$45 billion.
– Kontan, 23 January 2026
Bulog and National Food Agency to Be Merged into a Presidential Institution
Perum Bulog is planned to transform into a sui generis institution directly under President Prabowo Subianto. This follows the government’s plan to consolidate national food governance, with some functions of the National Food Agency (Bapanas) to be transferred to Bulog and the Ministry of Agriculture. The proposal has been discussed in Parliament and agreed upon in Commission VI deliberations, with support from Commission IV for accelerated review.
Bulog’s CEO Ahmad Rizal Ramdhani stated that the change would be pursued through revisions to the Food Law. Two deputy positions from Bapanas are expected to move to Bulog, while one deputy will be transferred to the Ministry of Agriculture.
– CNN Indonesia, 23 January 2026
Danantara Targets Groundbreaking of Waste-to-Energy Projects in March 2026
Danantara plans to begin the groundbreaking of Waste-to-Energy (WtE/PLTSa) projects in March 2026, following a tender process opened in December 2025. CEO Rosan Roeslani noted that this represents a significant acceleration compared to previous timelines that could take 3–4 years per project.
Investor interest has been strong, with over 100 international companies participating in the tender, supported by a regulated electricity tariff of US$0.20/kWh, providing commercial certainty.
The first phase will focus on four priority locations: Bogor, Bekasi, Denpasar, and Yogyakarta. The program is expected to address waste management challenges while increasing national power supply.
– Kontan, 19 January 2026
Danantara Prepares Rp20 Trillion Patriot Bonds II Issuance in 2026
Danantara plans to issue Patriot Bonds II worth Rp20 trillion in the first half of 2026, as a continuation of its earlier issuance. According to Bloomberg, the bonds are expected to offer coupons below market rates and will target high-net-worth individuals, including business groups in sectors such as palm oil.
The issuance has been presented to President Prabowo Subianto as part of Danantara’s broader investment expansion strategy. To date, Danantara has accumulated significant funding from SOE dividends, overseas syndicated loans, and support from international financial institutions such as the Japan Bank for International Cooperation (JBIC), amid government efforts to encourage greater contributions from high-income groups to national development.
– CNN Indonesia, 21 January 2026
Government to Establish New Textile SOE Following Sritex Bankruptcy
The government plans to establish a new SOE dedicated to the textile sector following the bankruptcy of PT Sri Rejeki Isman Tbk (Sritex). Minister of State Secretariat Prasetyo Hadi stated that the initiative aims to sustain economic activity and protect approximately 10,000 jobs, with the new SOE to operate under Danantara Indonesia and focus on garments and textiles. The formation process is ongoing and targeted for completion soon.
This initiative follows President Prabowo’s directive, as conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto. The government is preparing US$6 billion (approx. Rp101 trillion) in funding through Danantara, alongside a roadmap to strengthen the textile and apparel industry from upstream to downstream, targeting export growth from US$4 billion to US$40 billion within 10 years.
– Kontan, 19 January 2026
Government Enforces Centralization of Natural Resource Export Proceeds (DHE SDA) in State-Owned Banks
The government will enforce a policy requiring 100% retention of natural resource export proceeds (DHE SDA) for 12 months in state-owned banks (Himbara), as stipulated in the revision of Government Regulation No. 8/2025. This policy ends the flexibility of placing export proceeds in private banks and has raised concerns among businesses regarding liquidity and working capital.
Meanwhile, stakeholders in the fisheries industry argue that the restriction allowing only up to 50% currency conversion is highly burdensome, given thin margins and the additional administrative burden resulting from centralized placement in state-owned banks.
– Bisnis, 19 January 2026
Government to Build 12 Poultry Production Facilities Worth Rp20 Trillion, Funded by Danantara
The government, through the Ministry of Agriculture, will build 12 poultry production facilities (broiler and layer) valued at Rp20 trillion, funded by Danantara, with groundbreaking scheduled for 28 January 2026.
Minister of Agriculture Andi Amran Sulaiman stated that the project is a long-term solution to address price volatility of Day Old Chicks (DOC), stabilize national chicken and egg supply, and support the Free Nutritious Meal Program (MBG), particularly in regions experiencing protein supply shortages.
– Bisnis, 22 January 2026