The satellite industry is becoming increasingly strategic in supporting connectivity, network resilience, disaster mitigation, and Indonesia’s digital sovereignty. Given Indonesia’s geographical condition as an archipelagic and disaster-prone country, satellites remain critical infrastructure for reaching underdeveloped, frontier, and outermost (3T) regions and strengthening equitable digital access. Indonesia is considered to have strong potential to become a leading satellite ecosystem in the Asia-Pacific region, provided it can strengthen synergy among industry, research, talent, regulation, and technologies such as AI, cloud, IoT, and satellite-terrestrial integration.
—Kontan, May 13, 2026
Biak Prepared to Become Indonesia’s Spaceport
PT Pasifik Satelit Nusantara (PSN) is pushing to accelerate the development of a spaceport in Biak, Papua, due to its proximity to the equator, which can improve satellite launch efficiency by 15–20%. The facility is intended not only to serve domestic needs but also to become an international satellite launch gateway, with initial interest from Russia, Turkey, and India. The spaceport development is part of Indonesia’s space independence agenda, covering satellite launches, satellite manufacturing, earth observation, IoT, and the strengthening of the space economy toward 2045.
—Kontan, May 12, 2026
VKTR Develops National Electric Vehicle Industry Ecosystem in Central Java
PT VKTR Teknologi Mobilitas Tbk views Central Java as a strategic location for developing a national commercial electric vehicle ecosystem, supported by the readiness of the coachbuilding supply chain, particularly in Magelang. VKTR has built an assembly facility with a capacity of 3,000 electric buses and trucks per year, with plans to expand capacity to 10,000 units. This development aims to increase local content requirements (TKDN), strengthen local industries, create jobs, and position Central Java as a national hub for green industry and electric vehicle investment.
—Antara, May 11, 2026
Digital Data Raises Concerns Over Data Center Energy Waste
The growth of AI, cloud computing, and data storage is making data centers increasingly energy-intensive while also increasing emissions, land use, water consumption, e-waste, and supply chain pressures. The issue is further driven by digital clutter such as unused photos, files, and digital content that remain stored in the cloud. One emerging solution is the utilization of waste heat from data centers for district heating, greenhouses, or hot water systems, allowing digital infrastructure to become more efficient and sustainable.
—The Guardian, May 14, 2026
PLN: LNG Will Remain the Backbone of Indonesia’s Energy Transition Until 2034
PLN EPI projects that national gas demand for electricity generation will continue increasing through 2034, driven by electricity growth from transportation, industry, residential sectors, and data centers. Gas is expected to remain a key pillar of power system reliability, with PLN’s gas demand rising from 1,748 BBTUD in 2026 to 2,490 BBTUD in 2034. To secure supply, PLN EPI is strengthening long-term LNG contracts and building infrastructure such as FSRUs, LNG carriers, ORUs, pipeline networks, and LNG clusters across various island regions.
—Antara, May 11, 2026
LNG Crisis Pushes Asia Back Toward Coal
Major Asian LNG markets such as South Korea and Japan are increasing coal usage due to LNG supply disruptions caused by the Iran war. Coal-based electricity supply in South Korea rose 39.7% YoY in April, while Japan’s coal-fired generation recorded its fastest increase in a year.
The surge in coal imports indicates that global energy disruptions may slow the energy transition, as countries revert to more readily available energy sources to maintain supply security.
—Reuters, May 12, 2026
Mamuju Becomes Indonesia’s Primary Rare Earth Source
Indonesia is said to currently have only one primary rare earth element (REE) source, located in Mamuju, West Sulawesi. Unlike other REE sources in Indonesia, which are generally by-products, Mamuju’s REEs have the potential to become a primary commodity. This potential has attracted attention from BIM, the Ministry of Energy and Mineral Resources (ESDM), Danantara, and universities for further development, including research into extraction technology for mixed oxide production. Mamuju is also considered strategic due to its potential reserves of key elements such as NdPr, terbium, and dysprosium, which are required for high-tech industries, magnets, EVs, and defense.
—Bloomberg Technoz, May 13, 2026
Indonesia’s Healthcare Industry Still Dependent on Imports
Indonesia remains highly dependent on imported pharmaceutical raw materials, with 80–90% sourced mainly from China and India, due to weak upstream industries such as basic chemicals and petrochemicals. Dependence also exists in medical devices, with around 52% still imported, especially for high-technology equipment that cannot yet be widely produced domestically.
New regulations requiring imported medicines to be produced locally or accompanied by technology transfer are considered positive, but they need to be supported by stronger upstream industries and cross-ministerial coordination to truly achieve pharmaceutical and medical device independence.
—Bisnis Indonesia, May 15, 2026
Task Force for Accelerating Government Strategic Programs (P2SP) Opened to Global Investors
The Ministry of Finance introduced the Task Force for Accelerating Government Strategic Programs (P2SP) to global investors as a channel for resolving business obstacles or debottlenecking. The task force involves various ministries/agencies and regional governments to ensure investment-related issues can be addressed more quickly and in a coordinated manner. The government is also working with the Ministry of Foreign Affairs to socialize this channel through Indonesian embassies, so foreign investors know where to raise concerns when facing business barriers in Indonesia.
—Antara, May 12, 2026
Central Java Prepares 12 New Industrial Zones
The Central Java provincial government is preparing 12 new industrial zones and special economic zones (SEZs) to accelerate investment, spread across areas such as Cilacap, Banyumas, Sragen, Demak, and Rembang. This move is driven by the importance of investment as a key engine of Central Java’s economy, with investment realization reaching Rp23.02 trillion in Q1 2026 and generating employment for 92,000 workers. The central government supports the development of industrial zones as they can accelerate licensing, strengthen logistics, and improve Central Java’s investment competitiveness.
—Antara, May 11, 2026