Overview

The OECD has advised Indonesia to proceed cautiously in its bid for full membership, prompting President Jokowi to prepare for accession. As part of this effort, Indonesia will review its economic policies to address integrity issues. Meanwhile, revised import regulations have raised concerns among local electronics and cable sectors about potential negative impacts. A new policy mandating a 3% salary contribution to the Public Housing Savings Fund has faced criticism, and the Indonesian Employers' Association opposes the wage deductions, citing cost-push inflation risks. In financial markets, Indonesia raised Rp22 trillion from a government bonds auction, while Pertamina targets 420,000 BOPD oil lifting in 2024. Medco Energi divested its Libyan stake, and record imports of nickel ore from the Philippines were reported. PLN partners with Masdar to expand solar power, but the country has utilized less than 1% of its solar energy potential. Challenges in attracting $55 billion for renewable energy investment persist due to local content requirements. The new capital project has drawn interest from East Asian water businesses and plans to adopt an EV-only transportation policy. Autonomous rail transit trials and collaborations on EVs are underway, with increasing competition in the EV market and subsidies for electric motorcycles nearing targets. The rupiah and peso have declined among Asian currencies, but the banking industry remains stable. Agoes Projosasmito has entered Indonesia’s richest list, and the US has imposed antidumping duties on Indonesian shrimp. Finally, there is a sustained high demand for whitening skincare products in the country.