International rating agency R&I reaffirmed Indonesia’s credit rating at BBB+ with a stable outlook on October 24, 2025. This rating, two notches above the investment-grade threshold, reflects market confidence in Indonesia’s economic resilience amid global uncertainty.
Bank Indonesia Governor Perry Warjiyo stated that the decision was supported by stable inflation, low debt ratio, and prudent fiscal and monetary policies.
R&I also highlighted Indonesia’s strong fundamentals — including demographics, abundant natural resources, and the manufacturing sector — while emphasizing the importance of maintaining medium-term fiscal discipline.
The 2025 economic growth projection remains around 5%, with inflation and current account deficit under control. Perry underscored the need for strong synergy between Bank Indonesia and the government to strengthen economic prospects and maintain financial stability.
— Kontan, October 28, 2025
Indonesia Resumes Negotiations with the U.S. for 0% Tariff on Key Export Products
The Indonesian government has reopened negotiations with the United States to secure 0% import tariffs for key export products such as palm oil, cocoa, and rubber.
This move follows positive signals from U.S. President Donald Trump’s administration, which is reviewing tariff policies for Southeast Asian countries, including Malaysia, Thailand, Cambodia, and Vietnam.
Coordinating Minister for Economic Affairs Airlangga Hartarto said follow-up negotiations would begin in November 2025, after the APEC Summit.
He expressed hope that Indonesia would receive treatment similar to Malaysia, which already enjoys 0% tariffs on certain commodities not produced in the U.S.
Indonesia also proposed that medical supply chain products be included in the duty-free list.
— Kontan, October 30, 2025
Government Ensures Continuation of 2026 Priority Programs and Economic Stability
The government confirmed the continuation of cross-sector priority programs in 2026 to ensure policy continuity and economic stability.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that supporting regulations had been prepared, including:
- Extension of final income tax for MSMEs until 2027,
- Income tax incentives (PPh 21) for the tourism and labor-intensive industries,
- VAT borne by the government (DTP) for the housing sector, and
- Discounts on JKK-JKM contributions.
President Prabowo Subianto has placed special focus on agriculture and fisheries, with programs including the revitalization of 20,000 hectares of coastal ponds, shrimp farm development in East Nusa Tenggara, fishing fleet modernization, and the free nutritious meal program.
Airlangga added that all ministries had prepared reports and would continue monitoring implementation through the end of 2025.
— Kontan, October 30, 2025
Government Targets Completion of 12 National Strategic Projects Worth Rp270 Trillion by End-2025
The government continues to accelerate the completion of National Strategic Projects (PSN) to boost economic growth.
By the end of 2025, 12 PSN projects worth a total of Rp270 trillion are expected to be completed.
Since 2016 until the first half of 2025, 204 PSN projects have been finished, with a cumulative investment of Rp2,097 trillion.
The latest list, as stipulated in Coordinating Minister Regulation No. 16/2025, includes 226 projects and 24 programs with a combined investment value of Rp6,491 trillion.
Funding composition: 74.2% private sector, 15.4% SOEs/regional SOEs, and 10.4% state and local budgets.
New National Strategic Projects include:
- Konasara Green Tech Industrial Area (Southeast Sulawesi)
- Futong Green Industrial Area (Riau)
- Penebang Island Industrial Area (West Kalimantan)
- Kumai Multi-Energy Industrial Area (Central Kalimantan)
- Toba Alumina Industrial Area (West Kalimantan)
- Indo Mineral Mining Industrial Area (Central Sulawesi)
- Sungai Tabuk Industrial Area (Central Kalimantan)
- Rimau Industrial Area (Central Kalimantan)
- Estuary Dam and Water Supply System in Teluk Bintan (Riau Islands)
- Tidal Rice Field Development in South Sumatra
New National Strategic Programs include:
- Flood Control and Congestion Management in Jakarta
- National Free Nutritious Meal Program
- National People’s School Program
- National Red-and-White Village/Urban Cooperative Program (Kopdeskel Merah Putih)
- National Education Digitalization Program
- National Poverty Alleviation Program
- Integrated Waste Management Program
- National Self-Sufficiency Program for Food, Energy, and Water in Southern Papua
- North Coast Pond Revitalization in West Java (Bekasi, Karawang, Subang, Indramayu)
- Integrated Shrimp Farming Development in East Sumba, East Nusa Tenggara
— Kontan, October 30, 2025
Government Establishes LPDU to Manage Religious Funds Estimated at Rp1,000 Trillion Annually
The government, through the Ministry of Religious Affairs, plans to establish the Religious Fund Empowerment Agency (LPDU) to manage Islamic religious funds, estimated at Rp1,000 trillion per year.
These funds come from religious activities such as qurban, aqiqah, fidyah, kaffarah, and infaq.
Minister Nasaruddin Umar stated that while the potential is vast, it remains underutilized and fragmented.
The LPDU, based in Jakarta, will begin operations next year under President Prabowo Subianto’s directive, involving agencies such as Baznas, BWI, BPJPH, and BPKH.
For example, qurban funds alone are estimated at Rp72 trillion annually, while fidyah from elderly groups could reach Rp2 trillion per year.
— Kontan, October 31, 2025
Minister of Home Affairs Forms Special Task Force to Accelerate “Kopdeskel Merah Putih” Program
Minister of Home Affairs Tito Karnavian has formed a Special Task Force (Satgas) to accelerate the implementation of the Village and Urban Cooperative (Kopdeskel) Merah Putih program.
The task force is led by Deputy Minister of Home Affairs Bima Arya, supported by key officials including Secretary-General Komjen Pol Tomsi Tohir, special ministerial staff from the police force, and Director General of Village Administration La Ode Ahmad Bolombo.
The Satgas will focus on mapping and preparing regional government land across Indonesia for Kopdeskel development.
Tito emphasized that eligible lands must meet four main criteria: clear legal ownership (certificate or official grant), minimum area of 1,000 m², space for office, outlet, warehouse, parking, and a strategic, accessible location.
This initiative aims to accelerate the establishment of village cooperatives as local economic hubs.
— Kontan, October 31, 2025
Government Studies Palm Oil DMO Scheme to Support B50 Implementation
Minister of Energy and Mineral Resources Bahlil Lahadalia announced that the government is studying a Domestic Market Obligation (DMO) scheme for palm oil, to ensure feedstock availability for the B50 biodiesel program without disrupting domestic cooking oil supply.
The DMO is one of three policy options under consideration, alongside production intensification and land expansion.
The B50 program, blending 50% palm oil with diesel, will require around 19 million tons of CPO per year, and is targeted to start in the second half of 2026.
Bahlil assured that the program will not affect domestic cooking oil supply.
Three test phases have been completed, and the final test is expected to conclude within 6–8 months before full implementation.
— Kontan, October 28, 2025