🇮🇩 INDONESIA — WEEK IN REVIEW
30 August–6 September 2026
This week’s progress centered on trade resilience, regional finance, downstream industry, infrastructure and skills.
📊 Trade returned to surplus; inflation remained within target
Indonesia posted a US$122 million goods-trade surplus in July, reversing June’s deficit and lifting the January–July surplus to US$3.70 billion. July exports rose 6.05% year on year, although imports climbed 27.02%. August inflation reached 3.19%, with core inflation at 2.92%—still inside Bank Indonesia’s 1.5–3.5% target range. Resilience remains visible, but the narrow monthly surplus and food-price pressures merit attention.
💱 Rupiah–Singapore dollar settlement went live
Bank Indonesia and the Monetary Authority of Singapore activated direct settlement for trade, investment and cross-border payments in rupiah and Singapore dollars. Participating banks can quote the pair directly, potentially lowering conversion costs and exchange-rate exposure while advancing ASEAN financial integration.
🏦 More bank liquidity was directed toward productive sectors
Destry Damayanti was formally sworn in as Bank Indonesia governor. From September, BI raised the maximum Macroprudential Liquidity Incentive from 5.5% to 6% of bank deposits. Banks had received Rp446.5 trillion in incentives by early August. The aim is to channel more financing to priority industries and MSMEs, although results depend on credit demand and sound lending.
🏭 Downstream industry gained a flagship project
Ground was broken for a coal-to-methanol complex in Kutai Timur, East Kalimantan. Designed to produce around 1.3 million tonnes of methanol annually, it could save up to Rp7.1 trillion in foreign exchange and supply petrochemicals and the B50 biodiesel ecosystem. Carbon capture is included in the design, but the project’s emissions performance requires close scrutiny.
🚆 A major infrastructure pipeline was presented to Japan
Indonesia offered Japanese investors 32 projects valued at Rp207.64 trillion—about US$11.86 billion—covering roads, railways, transit-oriented development, ports, logistics and property. Around 75% comprises operating or expansion-stage assets, which may lower risk. These are investment opportunities, not yet secured funding.
🎓 Skills development expanded
A national initiative began integrating hands-on STEM learning into early-childhood education, supported by updated digital materials and creative learning spaces in 50 elementary schools. National vocational training opened its fourth 2026 batch with 12,128 participants and a full-year target of 340,000. Registration also opened for 50,000 places in the second MagangHub graduate-internship phase.
🌏 International economic links widened
Indonesia and Ireland signed a framework covering AI, clean energy, sustainable finance, agrifood, health and aviation. At the Eastern Economic Forum, Indonesia advanced plans for direct transport links with Russia, a joint study on a Vladivostok urea plant and potential Danantara–RDIF project financing. Most initiatives still require commercial follow-through.
Bottom line: This was a week of institution-building—new payment rails, financing incentives, industrial projects and talent programs. Disciplined execution will determine whether these advances translate into productivity, jobs and broadly shared gains.
Melaniastasia Romanov
Forwarded fromMelaniastasia Romanov
6September 6, 2026 715 4
