Indonesia’s manufacturing PMI rose to 53.8 in February 2026, up from 52.6 in January, signaling stronger industrial expansion and marking the highest level in nearly two years. The increase was driven by stronger domestic demand ahead of Ramadan–Eid, a recovery in exports to emerging markets, and efficiency improvements in manufacturing supply chains.
Despite the positive outlook, industry players remain cautiously optimistic, as challenges persist, including global trade uncertainty, tariffs in key markets, and high logistics and financing costs.
— Kontan, March 2, 2026
Fitch and Moody’s Revise Indonesia’s Credit Outlook to Negative
Fitch and Moody’s have revised Indonesia’s credit outlook to negative, although the country’s investment-grade rating remains unchanged. The revision was driven by policy uncertainty, rising fiscal risks, and weakening economic governance.
Nevertheless, Indonesia’s economic fundamentals remain relatively strong, with moderate debt levels and growth around 5%. However, achieving the 8% growth target is considered challenging without more substantial structural reforms.
— Bloomberg Technoz, March 6, 2026
Indonesia and India Strengthen Cooperation on Critical Minerals and Steel Industry
Indonesia will strengthen cooperation with India in the development of critical minerals and the steel industry, formalized through a planned MoU between the two countries. Deputy Minister of Energy and Mineral Resources Yuliot Tanjung stated that India will also encourage its companies to invest in Indonesia’s metals and mineral downstream sectors.
The partnership will also cover the development of capital goods industries, research collaboration, and energy-efficient technology innovation, aimed at strengthening national energy resilience and creating long-term investment opportunities.
— Kumparan, February 27, 2026
Government Establishes Energy Transition Task Force
President Prabowo Subianto has established a new energy transition task force to accelerate Indonesia’s shift toward cleaner energy. Led by Energy Minister Bahlil Lahadalia, the task force aims to convert 120 million gasoline motorcycles into electric motorcycles within four years.
In addition, it will accelerate the development of 100 gigawatts of solar power capacity (PLTS) as part of Indonesia’s effort to achieve net zero emissions by 2060 and reduce the energy subsidy burden.
— Kontan, March 5, 2026
Danantara Secures US$1.4 Billion Investment for Solar Power Development
The Daya Anagata Nusantara Investment Management Agency (Danantara) has secured US$1.4 billion in investment for the development of solar power plants (PLTS). CEO Rosan Roeslani stated that the solar panel manufacturing facility is targeted to be completed by the end of 2026 and will support solar power deployment down to the village level.
In the initial phase, development will prioritize areas that already have electricity distribution infrastructure, with pilot projects already established in Sumenep.
— Kontan, March 5, 2026
Danantara and INA Invest US$200 Million in CA-EDC Chemical Plant
Danantara and the Indonesia Investment Authority (INA) have invested US$200 million in the Chlor Alkali–Ethylene Dichloride (CA-EDC) plant project owned by Chandra Asri Group in Cilegon, Banten. The facility, expected to begin operations in 2027, is part of a National Strategic Project with a total investment of around US$800 million.
The plant will produce approximately 400,000 tons of caustic soda and 500,000 tons of EDC annually, strengthening domestic chemical raw material supply and reducing import dependency. The project is also expected to create 3,000 jobs during construction and 250 jobs during operations.
— Fortune Indonesia, March 3, 2026
Coal Stock at Paiton Power Plant and Other IPP Plants Declining
The Paiton coal-fired power plant, operated by Paiton Energy, currently has coal stock sufficient for only about six days of operation (HOP) due to a surge in electricity demand from PLN exceeding earlier projections.
If demand remains high, coal needs could reach 9 million tons in 2026, while current supply contracts cover only 6.7 million tons. Meanwhile, the Indonesian Independent Power Producers Association (APLSI) reports that several IPP power plants have coal reserves of 10 days or less, as additional supply from suppliers has yet to be secured.
— Kontan, March 6, 2026
Indonesia Needs Strategic Energy Storage to Strengthen Energy Security
Strengthening energy reserves is considered crucial for improving Indonesia’s energy security. The founder of the ReforMiner Institute emphasized that energy reserves should not rely solely on Pertamina’s operational stocks, but should be supported by a National Strategic Energy Reserve through the construction of fuel storage facilities.
The Ministry of Energy and Mineral Resources is currently preparing a project to build crude oil storage capacity equivalent to 90 days of reserves in Sumatra, supported by investors. Currently, Indonesia’s energy reserves stand at only 25–26 days, far below the international benchmark of around 90 days.
— Kontan, March 5, 2026
Indonesia Diverts Part of Oil Imports to the United States
The Ministry of Energy and Mineral Resources has begun diverting part of Indonesia’s crude oil imports from the Middle East to the United States as a precaution against potential disruptions caused by conflict in the Strait of Hormuz.
Energy Minister Bahlil Lahadalia stated that about 20–25% of Indonesia’s crude imports currently originate from the region. The diversification strategy aims to ensure national energy supply stability if geopolitical tensions in the Middle East persist.
— Kontan, March 3, 2026