Indonesia Establishing Sustainable Finance Committee for Advancing Green Investments Indonesia is establishing a Sustainable Finance Committee (SFC) to increase green investments and address climate change challenges. The initiative aligns with the nation’s commitment towards sustainable and financial sector development. Bridging the Climate Financing Gap The SFC’s formation follows a significant funding shortfall for Indonesia’s climate…
Indonesia’s Sugar Palm Strategy Fuels Bioethanol Ambitions Indonesia Turning to the Sugar Palm Industry to Realise Bioethanol Ambitions Indonesia is developing the sugar palm industry as a source of fuel for the national bioethanol industry. The government plans to cultivate 300,000 hectares of sugar palm in the coming year to reduce dependence on imported fossil…
Ties in AI Connection Strengthened Between Indonesia and China As They Forge A Digital Partnership Indonesia and China are deepening their ties in digital collaboration. Their first mission? To start focusing on AI connection and the development of smart cities. The two countries are determined to lay the groundwork for a potential AI innovation hub…
Indonesia Launches Sovereign Wealth Fund to Oversee $900 Billion in National Assets Indonesia has launched the Danantara, a new sovereign wealth fund with the goal of managing $900 billion in state-owned assets. Formally known as Daya Angata Nusantara, it’s the second sovereign wealth fund in the country after the Indonesian Investment Authority (INA), which was…
Major Smallholder Business Credit Allocation for Small Businesses in 2025 The Indonesian government has set an ambitious goal of distributing Rp300 trillion (approximately US$18.4 billion) in smallholder business credit (KUR) in 2025. This initiative aims to provide accessible funding for micro, small, and medium enterprises (MSMEs). The government has also allocated Rp48 trillion to ease…
Energy and Mining Downstreaming Plan in Place in Indonesia Worth $40 Billion Indonesia has approved $40 billion downstreaming for its energy and mining sector in 2025. It’s an initiative led by the National Downstream and Energy Resilience Task Force. The priority is 21 projects across 26 mining commodities to enhance domestic production and reduce reliance…
Indonesia, Japan Partner for a Sustainable Future with Carbon Trading Agreement In line with the Paris Agreement, which aims to reduce greenhouse gas emissions and global temperature by reducing climate change, Indonesia and Japan recently signed the Mutual Recognition Agreement (MRA) for a bilateral carbon trading agreement. The agreement aims to reduce greenhouse gas…
Rate Cuts Expected in 2025 As the Indonesia Economy Grew 5.03% The Indonesian economy grew by 5.03% in 2025. Although this is the country’s slowest expansion in three years, it was successful in maintaining its steady pace. While the country’s growth aligns with expectations, it still seems to fall short of the nation’s ambitious 8%…
Longer working lives boosts national economic growth, among other benefits The Indonesian government recently announced that starting January 1, 2025, Indonesian workers in BPJS Ketenagakerjaan’s pension program must wait until they are 59 to receive benefits. The amendment follows Government Regulation (PP) No. 45, which gradually raises the retirement age for program participants. Employers will…
Indonesia Plan to Retain Export Earnings Retention To retain its export earnings, Indonesia plans to require natural resource exporters to work for at least a year instead of the current three months. Under the new earnings policy, foreign exchange reserves will strengthen, the rupiah will stabilise, and economic growth will boost. The regulation is expected…
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