Indonesia

Indonesia posts rare January budget gap as spending jumps 26%

The finance minister has said growth should accelerate further to 5.5% to 6% this quarter

Indonesia’s labour-intensive sectors are among the most exposed to US demand in South-east Asia.

Uncertainty looms over Indonesia-US trade pact after legal blow in Washington

Analysts say the Supreme Court ruling gives Indonesia room to reassess its commitments

The Indonesia Stock Exchange estimates that 267 firms need to lift their public shareholdings to 15%, up from the current 7.5% minimum, implying share sales worth about 187 trillion rupiah (S$14 billion), according to listing director I Gede Nyoman Yetna. 

Indonesia faces record share sales to meet free-float goal

The push is aimed at heading off a potential downgrade to frontier market status by MSCI

Above: The Bank Indonesia headquarters in Jakarta. In 2026, it expects the current account deficit to be in the range of 0.1 to 0.9% of GDP.

Indonesia Q4 current account deficit at 0.7% of GDP

For the whole of 2025, it stands at US$1.5 billion, much lower than the 2024 deficit due to an increase in the merchandise trade surplus

Regulators are now scrambling to restore credibility, boost liquidity and reassure global investors that the market remains accessible.

Indonesia sees US$11 billion in share sales for free-float aim

Indonesian authorities have pledged to satisfy MSCI’s concerns by March

Indonesian President Prabowo Subianto (left), US Trade Representative Jamieson Greer (centre) and US President Donald Trump in Washington on Feb 19.

Trump, Indonesia’s Prabowo finalise trade deal slashing tariff rate to 19%

Agreement eliminates higher duties on some of the Asian country’s exports, including palm oil, spices and pharmaceuticals

Indonesia has imported around US$3 billion worth of US agricultural products annually in recent years, making it the 11th-largest market for all US farm goods.

Indonesia, US firms sign US$38.4 billion in trade, investment deals

These are for partnerships in mining, energy, agribusiness, textiles, furniture and technology sectors

The bank leaves unchanged the overnight deposit facility and lending facility rates at 3.75% and 5.5%, respectively.

Bank Indonesia holds rates steady, focus remains on rupiah

It keeps benchmark 7-day reverse repurchase rate at 4.75%

“The damage to investor confidence is reversible. But a failure to do so would deal a more serious blow to investor confidence than an MSCI reclassification,” S&P analysts said in a report.

S&P says reviving investor confidence is key for Indonesia’s sovereign support

S&P noted authorities are addressing problems in the Indonesian stock market

The S&P Dow Jones Indices said that it is monitoring the new Indonesia Stock Exchange (above) guidelines.

S&P pushes ahead with Indonesia stock review as rivals hit pause

Competitors MSCI and FTSE Russell step up their scrutiny of the country’s market amid concerns of overstated free float