Global Scans · Indonesia · Weekly Summary

WHAT'S NEXT?: Indonesia's GDP is forecast to grow at 5% a year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment. She is likely to be among the star economic performers for at least the next decade but at the same time faces great challenges to overcome past political and social issues.

• [New] Indonesia is enacting a significant policy leap, lifting its domestic biodiesel mandate from 40% to 50% by late 2026, which will significantly boost domestic palm oil consumption and tighten global feedstock supply chains. Biofuels International
• [New] To support liquidity, Indonesia sovereign wealth fund Danantara will be mobilised, and the equity investment ceiling for pension funds and insurers will be raised from 8% to 20% of assets. The Business Times
• [New] The broker forecasts group volume growth of 2.4% in 2026, ahead of consensus, driven by a faster-than-expected recovery in India, China and Indonesia, alongside easier comparisons in Latin America. Proactiveinvestors NA
• [New] Sea level rise and flood risks impact the Mekong River Delta, Bangkok and southern Thailand, Java (Indonesia), and central Luzon and southern Mindanao (the Philippines). PubMed Central (PMC)
• [New] RMI's analysis emphasizes that Indonesia's nickel and aluminum processing, increasingly powered by coal, poses a challenge but also opportunity: shifting to renewable energy for processing creates competitive advantage as customers demand green metals produced with clean power. The Economy
• [New] Indonesia's Grasberg mine, the world's second-largest copper operation, faced disruptions that led to downward revisions in production forecasts. Copperbelt Katanga Mining
• [New] The Asian Development Bank approved $470 million in financing for renewable energy transition projects, supporting Indonesia's goal of reaching 41% clean power generation by 2040. Mission Media
• [New] IMF upgrades Indonesia to 5.1% growth through 2027 as Prabowo launches $10 B Danantara fund at Davos. Mission Media
• [New] For Indonesia's next generation of workers and entrepreneurs - who will live and work in an AI-driven economy - ASEAN is the natural economic space to scale up. East Asia Forum
• [New] Domestically, accelerated government spending, wider fiscal deficits, and dovish Bank Indonesia policy are expected to lift GDP growth to around 5.1% in 2026, revive domestic consumption, and improve system liquidity. Fat Tiger Think Tank
• [New] Indonesia anticipates 5.1% growth, supported by domestic consumption and strategic positioning in AI-era mineral supply chains. The Economy
• [New] Jakarta - The International Monetary Fund (IMF) has raised its outlook for Indonesia's economic growth, forecasting that Southeast Asia's largest economy will expand by 5.1% in 2026. Vietnam+ (VietnamPlus)
• [New] With abundant silica sand and plans to restrict raw material exports by 2027, it is seeking foreign partners to help establish local wafer and chip manufacturing. / Indonesia FinExtra
• [New] Indonesia has emphasized the national pooling fund, reinsurance for public assets, and support programs for agricultural risks. Insurance Business
• [New] Indonesia will not base its national interests on multilateralism that does not work. Antara
• [New] Indonesia has entered 2026 with a clearer vision of its foreign policy following Foreign Minister Sugiono's annual address, analysts say, but questions remain over how Jakarta plans to turn its stated ambitions for resilience into concrete policy. The Jakarta Post
• [New] Predictive Analysis: Indonesia will likely reject explicit security conditionality while pursuing conventional trade negotiations, but may quietly expand defence cooperation through separate channels to maintain strategic flexibility. Drone Warfare
• [New] If Indonesia accepts, China will likely respond with economic coercion, increased maritime patrols near Indonesian waters, and intensified efforts to offer alternative technology partnerships to other ASEAN states, framing US actions as neo-colonial coercion that threatens regional sovereignty. Drone Warfare
• [New] Indonesian fintech platforms leverage AI for credit scoring in populations traditionally underserved by banks, expanding financial inclusion while managing risk. The Economy
• [New] Indonesia's first tranche of new capital rules will kick in as at year-end 2026, with the second phase to follow in 2027. (Re)in Asia - Emerging risks - Growth opportunities - A

Last updated: 09 February 2026