Highlights

• Robust External Performance Amid Trade Diplomacy: Indonesia’s trade surplus widened to USD 4.11 bn, exceeding market and SSI forecasts, supported by export frontloading ahead of U.S. tariffs. The 19% U.S. tariff deal boosted short-term trade resilience while external buffers remained strong with FX reserves at USD 152.6 bn.

 

• ⁠Accommodative Monetary and Fiscal Policies: Bank Indonesia cut rates to 5.25%, its fourth cut since September 2024, supported by stable inflation (2.37% YoY) and soft domestic demand. M2 growth accelerated to 6.5%, while fiscal efforts focused on MSME tax formalization and village cooperative funding, signaling structural inclusion without large-scale stimulus.

 

• Financial Markets Supported by Trade and Policy Wins: The JCI gained momentum, led by tech, infrastructure, and energy sectors, with renewed foreign inflows. 10-year SUN yields fell and INDON 5Y CDS declined, reflecting improved risk perception after the U.S. trade settlement, though the Rupiah remained in the 16,250–16,600/USD range.

 

• ⁠Digital Economy Acceleration with AI and Payments Innovation: The National AI Strategy and private sector initiatives like Indosat–Nvidia AI-RAN and Tapway Vision AI boosted Indonesia’s digital transformation.

 

• ⁠QRIS adoption hit 44 million users, “QRIS Tap” launched, and BRILink processed IDR 843 tn, deepening financial inclusion and e-commerce integration.

 

• Green Transition and Regional Developments Underway: Cirata floating solar and geothermal projects advanced the energy transition, while Raja Ampat nickel permit revocations signaled stricter sustainability enforcement. Regionally, Jakarta LRT, satellite broad