Overview

Indonesia’s economic strategy is increasingly centered on industrial upgrading, sovereign asset management, and digital integration, with Danantara emerging as a key vehicle in this transformation. The government is signaling openness to global talent and technology partnerships, particularly in semiconductors, while maintaining strong fiscal momentum supported by robust early-year tax collection. At the same time, large-scale social spending through the Free Nutritious Meals (MBG) program continues to expand, reinforcing domestic demand and political capital. Financial inclusion and Islamic finance products are also gaining traction, reflecting demographic and consumption trends. Payment system integration through QRIS and infrastructure megaprojects such as the giant sea wall highlight long-term structural ambitions. However, trade policy adjustments under the US-Indonesia ART agreement are drawing criticism from civil society and lawmakers, particularly on halal standards and industrial sourcing. Liquidity support to banks signals continued macro prudence amid global uncertainty. Governance questions, including scholarship compliance and industrial import policies, remain under scrutiny. Overall, Indonesia is pursuing an assertive industrial and fiscal agenda, but execution credibility and policy coherence will be crucial to sustaining investor confidence.