Danantara has officially commenced Phase I of six downstream (value-added) projects across 13 locations in Indonesia, with total investment estimated at approximately US$7 billion (Rp118.13 trillion). These projects are expected to create around 3,000 jobs.
The six downstream projects that have reached the groundbreaking stage are:
- Glenmore Bioethanol Project – Banyuwangi, East Java
- Bauxite Processing and Refining Facility into Alumina (Smelter Grade Alumina Refinery / SGAR Phase 2) – Mempawah, West Kalimantan
- Alumina-to-Aluminium Processing and Refining Facility (New Aluminium Smelter) – Mempawah, West Kalimantan
- Biorefinery Project – Cilacap, Central Java
- Salt Factory and Mechanical Vapour Recompression (MVR) Facility – Gresik, Manyar, and Sampang
- Integrated Poultry Facilities – Malang, North Gorontalo, South Lampung, South Sulawesi, East Kalimantan, and West Nusa Tenggara (NTB)
Source: Kontan, 6 February 2026
Pertamina Integrates Downstream Businesses Through the Formation of a Downstream Subholding
PT Pertamina (Persero) has officially integrated three downstream business lines—PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional, and the downstream segment of PT Pertamina International Shipping—into a single Downstream Subholding, with Patra Niaga designated as the surviving entity. The merger became effective on 1 February 2026.
Pertamina President Director Simon Aloysius Mantiri stated that the integration aims to enhance operational efficiency, strengthen the reliability of national energy supply, and accelerate decision-making and capital allocation. Through an integrated supply chain from refining to marketing, Pertamina also targets faster energy transition efforts, including the development of low-carbon fuels, without disrupting services to the public or business partners.
Source: Kontan, 5 February 2026
BPS Records Solid Indonesian Economic Growth Throughout 2025
- Economic growth remained solid. GDP grew 5.39% yoy in Q4-2025, while full-year 2025 growth reached 5.11%, higher than in 2024. Household consumption remained the main growth driver, supported by year-end holiday mobility, controlled inflation, and government stimulus, according to Statistics Indonesia (BPS) and BPS Head Amalia Adininggar Widyasanti.
- Investment (GFCF) grew 6.12% yoy in Q4-2025, while exports expanded 3.25% yoy, supported by non-oil and gas exports and tourism services. Leading GDP sectors included manufacturing, trade, agriculture, construction, and mining. Transportation, information & communication, and financial services posted strong growth.
- Labor market conditions improved. The open unemployment rate fell to 4.74% (November 2025), with 1.37 million net job additions between August and November 2025, mainly in accommodation & food services, manufacturing, and trade.
- Poverty declined. The poverty rate fell to 8.25% (September 2025), with the number of people living in poverty declining to 23.36 million. The Gini ratio improved to 0.363, indicating reduced inequality.
Source: CNN Indonesia, 5 February 2026
Indonesia’s Manufacturing PMI Improved in January 2026
Indonesia’s Manufacturing PMI rose to 52.6 in January 2026, up from 51.2, driven by stronger domestic demand and higher output, although export conditions remained challenging. Febrio Nathan Kacaribu stated that this performance underscores economic resilience, while the government continues to accelerate debottlenecking efforts to improve the investment climate.
Business optimism reached its highest level in ten months, supported by improving domestic indicators (real retail sales index, vehicle sales, electricity consumption) and a globally expansionary PMI environment.
Source: Kontan, 2 February 2026
Moody’s Revises Indonesia’s Outlook to Negative, Maintains Baa2 Rating
Moody’s Ratings revised Indonesia’s sovereign credit outlook to negative from stable, while affirming the Baa2 rating. The outlook downgrade reflects weaker policy predictability and communication, which Moody’s views as increasing market volatility and governance risks. However, the rating affirmation reflects Indonesia’s solid economic fundamentals, relatively prudent fiscal-monetary policy, and moderate debt levels.
Moody’s also highlighted potential fiscal risks from expanding public spending and governance and funding uncertainties related to the new sovereign wealth fund, Danantara, while assuming institutional clarity will improve over time. The outlook could return to stable if policy consistency strengthens, while downgrade risks could emerge if fiscal deficits widen without revenue reforms or if SOE financial health deteriorates.
Source: Kontan, 5 February 2026
OJK Promotes Universal Banking to Deepen Financial Markets
The Financial Services Authority (OJK) is promoting the implementation of universal banking to deepen Indonesia’s financial markets in line with the Financial Sector Development and Strengthening Law. OJK’s Chief Executive for Banking Supervision, Dian Ediana Rae, stated that this scheme would expand banks’ roles in capital markets, including equity ownership, bond trading, and acting directly as underwriters.
Despite concerns over increased risk, OJK believes these can be managed through strict supervision and firewall mechanisms. Full implementation still requires parliamentary approval, but OJK is prepared to pursue gradual implementation under existing regulations to enhance banks’ contribution to financial market deepening.
Source: Kontan, 7 February 2026
Stock Exchange Demutualization to Be Conducted via Private Placement and IPO
Demutualization of the stock exchange will be carried out through private placement and an initial public offering (IPO) to improve transparency and accountability. A Government Regulation on demutualization is currently being drafted and will be discussed with Parliament, involving OJK and the Ministry of Finance.
The demutualization of the Indonesia Stock Exchange aims to strengthen governance, reduce conflicts of interest, and open exchange ownership to parties beyond broker-dealers.
Source: Bisnis Indonesia, 5 February 2026
State Authorized to Seize Unproductive Mining and Industrial Land
The government has issued Government Regulation (PP) No. 48 of 2025 on the Control of Idle Land and Areas, aimed at optimizing the use of non-productive land, including mining, plantations, industrial estates, housing, and tourism areas. The state may take over licensed or concession land that is deliberately left unused, including land under HGU, HGB, HPL, and even freehold title (SHM), if proven abandoned.
The revision shortens the enforcement process from 587 days to 90 days, in line with presidential directives, to accelerate land redistribution through local governments and the Land Bank. Minister of Agrarian Affairs and Spatial Planning Nusron Wahid emphasized that the policy is intended to ensure idle land is swiftly utilized for public benefit.
Source: Bisnis Indonesia, 7 February 2026