The President Director of PT PP (Persero) Tbk, Novel Arsyad, emphasized that the establishment of a holding company or merger for state-owned construction firms (BUMN Karya) is still targeted for 2026, although the exact timing depends on the completion of a comprehensive study. The process covers business, legal, market, and risk aspects, and is being conducted together with Danantara Indonesia and independent consultants. Novel noted that PTPP’s internal readiness is currently only around 40–50%, making prudence essential to ensure that the resulting holding has a strong business foundation and sound governance. For 2026, PTPP is targeting new contracts worth Rp23.5 trillion, with projected revenue of around Rp16 trillion.
— Antara News, 18 December 2025
Telkom Officially Spins Off Phase I Fiber Assets to InfraNexia, Initial Value Rp35 Trillion
PT Telkom Indonesia Tbk has officially signed the deed for the Phase I spin-off of its wholesale fiber connectivity business and assets to its subsidiary, PT Telkom Infrastruktur Indonesia (InfraNexia). The assets transferred in the initial phase are valued at approximately Rp35 trillion, with total projected assets of InfraNexia reaching up to Rp90 trillion once the entire spin-off process is completed. This corporate action is part of Telkom’s transformation into a strategic holding company, in line with its “5 Bold Moves” and TLKM 30 strategy, which positions Telkom as a holding entity while operations are carried out by subsidiaries. InfraNexia’s legal day one is targeted for 1 January 2026, with objectives including improving capex efficiency, optimizing and monetizing assets, and supporting the acceleration of nationwide digital connectivity.
— Bisnis, 18 December 2025
Hajj Village Hotel in Saudi Arabia to Be Managed by InJourney
The Minister of Investment and Downstreaming, who also serves as CEO of Danantara Indonesia, Rosan Roeslani, stated that hotels in the Indonesian Hajj Village area in Saudi Arabia will be managed by BP BUMN through PT Aviasi Pariwisata Indonesia (InJourney). The government has acquired one hotel in the Tahrir area of Mecca with 1,461 rooms, capable of accommodating around 4,383 pilgrims, and the project is targeted to begin operations in January 2026. In addition, the government has purchased approximately 5 hectares of land for further development, including the construction of 13 additional towers and a shopping center, which could potentially increase capacity to 6,025 rooms or more than 23,000 Indonesian Hajj and Umrah pilgrims.
— Antara News, 17 December 2025
As of November 2025, State Budget Realization Reaches Rp2,911.8 Trillion or 82.5% of the Outlook
State Budget (APBN) realization as of 30 November 2025 reached Rp2,911.8 trillion, equivalent to 82.5% of the Semester I/2025 outlook. Central government spending amounted to Rp2,116.2 trillion (79.5%), with ministry and agency spending reaching Rp1,110.7 trillion (87.1%), up Rp61 trillion compared to the same period last year. Non-ministry/agency spending was absorbed at only 72.5%, while transfers to regional governments (TKD) reached 92.1%. Of the Rp927.2 trillion allocated for priority programs, realization reached Rp752.7 trillion (81.2%). The Free Nutritious Meals Program (MBG) has absorbed Rp52.9 trillion (74.6%) and reached 50.7 million beneficiaries, approaching the target of 82.9 million people.
— Bisnis, 19 December 2025
BI Holds BI-Rate at 4.75% to Maintain Rupiah Stability and Support Growth
Bank Indonesia has maintained the BI-Rate at 4.75% at its Board of Governors’ Meeting on 16–17 December 2025, with the Deposit Facility at 3.75% and the Lending Facility at 5.50%. The policy aims to safeguard rupiah exchange rate stability amid global uncertainty, while strengthening the transmission of monetary and macroprudential easing. BI has left room for potential rate cuts going forward, given contained inflation in 2026, and continues to support economic growth through stronger banking liquidity, credit expansion to priority sectors, and the digitalization of payment systems.
— Kontan, 17 December 2025
BI: Household Consumption Begins to Improve in Q4 2025
Bank Indonesia observed that household consumption began to strengthen in the fourth quarter of 2025, driven by government social spending and rising household confidence in income prospects and employment. This improvement is reflected in higher retail sales. Non-building investment has also improved, in line with the expansion of the manufacturing PMI.
However, domestic demand still needs to be reinforced as export performance is expected to slow. BI projects economic growth in 2025 in the range of 4.7%–5.5%, rising to 4.9%–5.7% in 2026, supported by a stronger policy mix of monetary, macroprudential, and payment system measures, in synergy with fiscal stimulus and the real sector.
— Kontan, 17 December 2025
World Bank Urges Tax Reform to Safeguard Indonesia’s Fiscal Position in 2026–2027
The World Bank assessed that the Indonesian government needs to adopt bolder and more proactive tax revenue strategies to maintain fiscal sustainability amid deficit risks and potential revenue shortfalls in 2026–2027. In its December 2025 Indonesia Economic Prospects report, the World Bank recommended strengthening tax administration and digitalization, including expanding electronic services, data integration, and simplifying reporting, which could potentially increase revenue by around 1% of GDP. In addition, adjustments to VAT and corporate income tax thresholds, broadening the tax base, reducing VAT exemptions, and applying a standard tax on capital gains are seen as measures that could boost revenue by up to 1.5% of GDP without undermining tax neutrality and equity.
— Kontan, 17 December 2025
Indonesia Strengthens Rare Earth Downstreaming Amid Global Competition
Indonesia has reaffirmed its strategic role in the downstream development of rare earth elements (REE), which are critical for technology, clean energy, and defense. Despite significant potential, limited technology and investment remain key challenges. The government is strengthening policies through Minister of Energy and Mineral Resources Regulation No. 18/2025 and the establishment of the Mineral Industry Agency (BIM), with state-owned enterprises as the main executors. MIND ID and PT Timah are focusing on REE research derived from tin by-products through 2027, with commercialization targeted for 2028 to increase value added and strengthen Indonesia’s position in the global supply chain.
— Kontan, 15 December 2025
Regional Budget Spending Absorption Remains Slow, Rp218.2 Trillion of Local Government Funds Parked in Banks
Regional government spending realization as of the end of November 2025 reached Rp922.5 trillion, or 65.3% of the total regional budget ceiling (APBD), with strong acceleration in November amounting to Rp114 trillion. As spending increased, local government cash balances in banks declined from Rp230.1 trillion in October to Rp218.2 trillion. The central government is urging local governments to accelerate spending in December to maximize economic impact and public benefits.
— Kontan, 19 December 2025
Government Accelerates Agglomeration-Based Waste-to-Energy Projects, Targets 10% of National Waste Managed by 2029
The government has officially accelerated the development of Waste-to-Energy (PSEL) projects through a two-phase, agglomeration-based regional scheme to transform national waste management. The second phase covers Greater Surabaya, Greater Lampung, and Greater Serang, complementing the initial phase in Greater Bogor, Greater Denpasar, and Greater Tangerang. PSEL is positioned as a pillar of new and renewable energy, supported by an integrated licensing system, transparent asset management, and technological flexibility. With a total capacity of 14,000 tons of waste per day, PSEL is targeted to process nearly 10% of national waste generation by 2029, while attracting global investment and supporting solutions to waste and climate crises.
— Antara News, 18 December 2025