Highlights

• Former Jampidsus Febrie Adriansyah Named Corruption Suspect as Kejagung Takes Over Three Cases: Former Attorney General for Special Crimes (Jampidsus) Febrie Adriansyah has stepped down from his position and has been named a corruption and money laundering suspect. The Attorney General's Office (Kejagung) has officially taken over three major cases from the National Police involving alleged corruption in the coal supply for PLTU, PT Asabri, and PT Krakatau Steel to accelerate investigations and strengthen inter-agency coordination. Authorities said evidence development, asset tracing, and coordination between investigators will continue until the cases reach legal certainty. The development signals intensified anti-corruption enforcement and could keep governance risks under close market scrutiny.

 

• Indonesia's macroeconomic fundamentals continue to face increasing headwinds from both external and domestic factors. Although Q1 2026 GDP grew 5.61% YoY, supported by credit expansion and investment, rupiah weakness, tighter global financial conditions, and softer domestic sentiment suggest growth momentum may moderate in the coming quarters.
• Fiscal conditions remain manageable, but sustaining revenue performance may become more challenging going forward. State revenues increased 21.4% YoY to IDR 1,459.4 tn, outpacing expenditure growth of 17.8%, while the fiscal deficit remained contained at 0.76% of GDP. However, slower economic activities and rising fiscal commitments could limit flexibility ahead.

 

• Domestic demand shows signs of weakening as consumer confidence continued to decline. Consumer confidence fell for a third consecutive month to 117.8, reflecting more cautious household spending and employment expectations. While credit growth, government expenditure, and investment continued to provide support, these may only partially offset softer private consumption.
  • Investment activity remained relatively supportive, but execution risks and policy trade-offs persistently weigh on the outlook. Progress in strategic projects—including SEZs, renewable energy, critical minerals, and digital infrastructure—remained positive, although delays in implementation and policies such as the B50 biodiesel program could create pressure on export earnings and reduce overall economic benefits.

   

  • Financial markets remained under pressure as external uncertainties and domestic concerns weighed on investor sentiment. The rupiah weakened beyond IDR 18,000/USD, elevated US Treasury yields continued to tighten financial conditions, and foreign investors remained cautious amid market volatility. At the same time, governance concerns surrounding Indonesia's capital market may continue to weigh on investor confidence and capital inflows.