Pertamina, Indonesia's state-owned energy company, has signed a memorandum of understanding with US-based LanzaTech at the Offshore Technology Conference in Houston to develop low-carbon energy solutions using microbial fermentation technology that converts waste gases into fuels like ethanol. This partnership aims to tackle Indonesia's challenges of managing 56,600 tonnes of daily urban waste and meeting projected ethanol demand of 2.4 million kilolitres by 2030, while fostering a circular economy and creating new revenue streams in alternative energy and chemical industries. The collaboration supports Indonesia's net zero emissions target by 2060, enhances energy resilience through innovation, and positions the country as an attractive destination for technology-driven energy investments.

The price of Antam gold has risen by Rp40,000 per gram to Rp2,859,000, with the buyback price increasing to Rp2,676,000 per gram, as reported on the Logam Mulia website. This surge reflects ongoing fluctuations in the precious metals market, influencing investor decisions in Indonesia's financial landscape. Transactions are subject to specific tax deductions under PMK No. 34/PMK.10/2017, including PPh Pasal 22 rates varying by NPWP status, ensuring regulatory compliance in gold trading.

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has announced plans to construct oil storage facilities in a Special Economic Zone (SEZ) in Sumatra as part of the nation's strategic energy reserves. This initiative aligns with regional discussions at the ASEAN Summit in the Philippines, where Indonesia proposed hosting a regional oil storage hub to enhance energy cooperation amid global geopolitical uncertainties. The move positions Indonesia ahead in implementing such infrastructure, with feasibility studies already underway.

The verdict for former technology consultant Ibrahim Arief, known as Ibam, in the alleged corruption case involving the procurement of Chromebook-based laptops will be read today at the Jakarta Corruption Court. Prosecutors have demanded a 15-year prison sentence, a Rp 1 billion fine, and potential asset confiscation if restitution is not paid, citing a Rp 16.9 billion increase in his wealth from the corruption. Previously, two other defendants from the Ministry of Education were sentenced to prison terms and fines, while former Minister Nadiem Makarim faces prosecution proceedings tomorrow.

The Jakarta Composite Index (IHSG) opened higher on Tuesday, gaining 0.60% to 6,946.85, but analysts warn of limited upside due to escalating US-Iran tensions and stalled negotiations, which could drive up oil prices and heighten global uncertainty. Investors are also eyeing key economic data from the US, China, Europe, and Japan, including rising inflation figures that may prompt tighter Federal Reserve policy, alongside positive domestic signals from Indonesia's government opting not to activate the Bond Stabilization Fund to maintain bond market stability. This outlook underscores the interplay between geopolitical risks and economic resilience, with Pilarmas Investindo projecting IHSG support at 6,850 and resistance at 7,000.

Rising fuel prices due to global geopolitical tensions and energy cost pressures are seen as a catalyst for accelerating Indonesia's energy transition, particularly in the electric vehicle sector, with a focus on motorcycles. The Indonesian Electric Motorcycle Industry Association (AISMOLI) highlights that this could reduce reliance on imported energy and lower operational costs for consumers, though challenges like high initial prices, consumer education, charging infrastructure, and regulatory certainty persist. Incentives and consistent policies are deemed essential to bridge the price gap and foster industry growth.

The West Kalimantan Education Office has summoned the principal of SMAN 1 Pontianak and their LCC support team to discuss a viral controversy from the 2026 Four Pillars LCC competition, where the same answer on BPK member selection received differing scores from the same judge, leading to protests. The MPR's General Secretary stated that an internal review is underway, with a comprehensive evaluation planned to improve future competitions' transparency and accountability. This incident highlights the need for consistent judging in educational events tied to national institutions.

Former Education Minister Nadiem Makarim testified in a Jakarta corruption trial involving the procurement of Chromebook laptops, defending his appointment of special staff and a technology team as competent and approved by President Joko Widodo. He clarified that the special staff, including figures like Jurist Tan, were selected for their expertise and integrity, while the technology team operated under a Telkom subsidiary to support the government's education digitalisation mandate. This testimony addresses allegations of a "shadow organization" within the ministry, highlighting tensions in ministerial operations under his leadership.

The Composite Stock Price Index (IHSG) opened higher on Tuesday, May 12, 2026, at 6,946.85, up from the previous close of 6,905.62. However, by 09:22 WIB, it had declined by 1.18% or 81.79 points to 6,823.83, with trading volume reaching 437,400 transactions and market capitalisation at Rp 12.109 trillion. Despite an initial gain, the majority of stocks (407 out of 959) weakened, reflecting a predominantly bearish sentiment in the early session.

The Indonesian rupiah has plummeted to a historic low of Rp17,500 per US dollar amid escalating tensions in US-Iran relations, with President Trump declaring a fragile ceasefire "on the brink" following Tehran's rejection of Washington's proposals. This geopolitical standoff has driven Brent crude oil prices above US$104 per barrel and reduced shipping through the Strait of Hormuz, impacting global energy supplies and strengthening the US dollar index. Domestically, the rupiah opened 0.43% weaker, exacerbating economic pressures in Indonesia as new US sanctions target Iran's oil exports to China.

The North Jakarta City Government, led by Bunda PAUD Fida Hendra, has reaffirmed its commitment to accelerating one-year pre-school compulsory education and eliminating out-of-school children (ATS) through collaboration with local authorities, educational institutions, and stakeholders. This initiative addresses the critical issue of over 22,000 out-of-school children in the area, as reported by the Ministry of Basic and Secondary Education, viewing it as a cross-sectoral social challenge rather than solely an educational one. The programme aims to ensure equitable access to quality early childhood education, fostering a smart and characterful generation for Indonesia's future.

Presidential Chief of Staff (Ret.) General Dudung Abdurachman highlighted the difficulties in establishing a kitchen for Indonesia's Free Nutritious Meals (MBG) programme in Jakarta, citing a lack of available land and prohibitively high costs for acquisition or rental, which could deter investors seeking a break-even point. During an inspection of two MBG kitchens in West Jakarta, he discovered issues such as maggots and rubbish, underscoring the need for close oversight to prevent mismanagement and ensure the programme effectively meets children's nutritional needs. This initiative, aimed at improving child nutrition, faces significant logistical hurdles in urban areas like the capital.

Ibrahim Arief, a technology consultant at Indonesia's Ministry of Education, Culture, Research, and Technology, is set to receive his verdict today in a corruption case involving the procurement of Chromebook laptops and Chrome Device Management systems from 2019 to 2022, which caused state losses of Rp2.18 trillion. The case implicates high-profile figures including former Education Minister Nadiem Anwar Makarim, who faces prosecution next week, and fugitive Jurist Tan, highlighting systemic issues in government procurement processes. Co-defendants Sri Wahyuningsih and Mulyatsyah have already been sentenced to prison terms for their roles in the unlawful procurements that deviated from planning and procurement principles.

PT VKTR Teknologi Mobilitas Tbk is leveraging Central Java's potential to build a strategic foundation for Indonesia's national electric vehicle (EV) industry ecosystem, focusing on integrated manufacturing, supply chains, and operations for commercial EVs. The company has established an assembly facility in Magelang with an initial capacity of 3,000 electric buses and trucks annually, partnering with local bodybuilder Karoseri Tri Sakti to enhance localisation. VKTR's products already meet significant domestic content requirements, targeting 60-80% by 2030, supported by strong regional government backing and logistical advantages for distribution across Java.

The Jakarta Composite Index (JCI) opened stronger on 12 May 2026, gaining 41.23 points or 0.60% to reach 6,946.85, with the LQ45 index also rising modestly by 0.21%. Market participants are closely monitoring the upcoming MSCI Indonesia Index announcement, which could influence foreign investment flows following previous reforms by the Indonesia Stock Exchange and the Financial Services Authority. Analysts emphasise the importance of blue-chip stocks potentially affected by any changes in MSCI weighting, amid ongoing year-to-date corrections in the index.

West Java Governor Dedi Mulyadi is studying the replacement of motor vehicle taxes with a paid road scheme on provincial highways, similar to toll roads, to create a fairer system where users pay for actual usage rather than owning a vehicle. The provincial government claims this approach would allow fees to directly fund road maintenance improvements. He encouraged residents to remain optimistic about the proposal, highlighting its potential equity over the current flat tax model.

The new regulations on Export Proceeds from Natural Resources (DHE SDA), set to take effect on 1 June 2026, are expected to enhance Indonesia's foreign exchange reserves and increase the domestic supply of foreign currency. Bank Mandiri's Head of Macroeconomic and Financial Market Research, Dian Ayu Yustina, highlighted that the positive impacts will depend on Indonesia's export performance, which remains promising due to rising global commodity prices and growing exports to non-traditional markets. This policy could strengthen the inflow of US dollars, supporting both reserves and market liquidity amid a balanced global demand and price outlook.

Grace Natalie, Secretary of the Indonesian Solidarity Party's Board of Patrons, has expressed her willingness to meet former Vice President Jusuf Kalla amid a police report filed against her by the Islamic Organisations Alliance for allegedly editing and disseminating a misleading clip of JK's lecture, which they claim incites hatred. Natalie insists her video response was a personal matter not representing her party and denies any wrongdoing, noting no prior conflicts with JK and that the report was not filed by him personally. This controversy stems from JK's March 2026 lecture at Gadjah Mada University, with similar reports against activists Permadi Arya and politician Ade Armando, highlighting tensions over social media framing of political statements in Indonesia.

Social media acts as a double-edged sword in shaping consumption patterns among Indonesia's youth, driving rampant consumerism through the 'economy of appearance' while also fostering frugal living and financial literacy via counter-narratives. Anthropologist Prof. Dr. Semiarto Aji Purwanto from Universitas Indonesia highlights how platforms create social pressures to display economic achievements, yet sees hope in influencers promoting healthy financial management. This shift is bolstered by the gig economy's influence and Islamic economic concepts like qanaah, emphasising contentment and avoidance of waste.

The People's Consultative Assembly (MPR) has issued an apology following a viral incident at a quiz competition on the Four Pillars of the Indonesian State in West Kalimantan, where judges inconsistently scored identical correct answers from two teams, penalising one with -5 points and awarding 10 to the other. MPR Deputy Chairman Abcandra Muhammad Akbar Supratman and Secretary General Siti Fauziah announced a comprehensive evaluation of the judging process, verification systems, and overall competition mechanics to ensure fairness, objectivity, and integrity in future educational events. This mishap highlights the need for improved standards in national youth programmes aimed at fostering civic education.

Former Indonesian Education Minister Nadiem Makarim, on trial for corruption in a Rp2.18 trillion education digitalisation programme, claimed during court proceedings that he suffered financial losses each month while in office from 2019 to 2024, as he did not even check his ministerial salary out of dedication to public service. Despite this, he maintained income from shares in PT Aplikasi Karya Anak Bangsa (PT AKAB), and is accused of receiving Rp809.59 billion from the company via PT Gojek Indonesia, linked to unnecessary procurements of Chromebook laptops and Chrome Device Management systems. The case highlights significant state losses, including Rp1.56 trillion from the digitalisation initiative and over Rp621 billion from unneeded CDM procurement, underscoring allegations of mismanagement in a key government technology programme.

Head of the Presidential Staff Office, General (Ret.) Dudung Abdurachman, inspected two kitchens for the Free Nutritious Meals (MBG) programme in West Jakarta and discovered infestations of maggots and rubbish, deeming them unfit for operation. He urged immediate closure unless standards are met, warning of potential food poisoning risks to children beneficiaries and stressing that the programme, funded by public money, must prioritise health and safety over profit. This intervention highlights the government's commitment to ensuring the MBG initiative effectively supports Indonesia's vision for a golden future by 2045 through proper nutrition for the younger generation.

US President Donald Trump has endorsed suspending the federal petrol tax of 18.4 cents amid soaring fuel prices triggered by the Iran war and the closure of the Strait of Hormuz, aiming to ease the economic burden on American drivers facing record-high costs. While Republican allies in Congress are advancing related legislation, Senate Majority Leader John Thune expresses reservations, noting that the tax funds road repairs and that reopening the strait would be more effective. This move, alongside other energy relief efforts, underscores the political vulnerability for Trump and Republicans ahead of midterm elections, as fuel price hikes ripple into broader inflation concerns.

Finance Minister Purbaya Yudhi Sadewa has expressed frustration over the public unease caused by rumours of imposing Value-Added Tax (VAT) on toll road services, announcing he will reprimand officials at the Directorate General of Taxes (DJP) for such announcements. He emphasised that all future official statements on new tax policies will be issued solely through his office to avoid misinformation and anxiety, particularly as the government seeks to boost tax revenues. The proposed VAT on toll roads, outlined in DJP's 2025-2029 Strategic Plan and targeted for completion by 2028, aims to expand the tax base but remains in the planning stage without legal effect yet.

Global oil prices surged nearly 3% on Monday, reaching over 104 US dollars per barrel for Brent crude, following US President Donald Trump's statement that the ceasefire with Iran is on the verge of failure, reigniting fears of prolonged Middle East conflict and partial closure of the Strait of Hormuz. Iran's response to US negotiation proposals demands an end to hostilities across all fronts, compensation for war damages, lifting of sanctions, and restoration of its oil export rights, shifting market sentiment back towards escalation. Analysts predict oil prices will remain around 100 US dollars per barrel through the year due to slow supply normalisation, amid reports of reduced OPEC production and limited tanker movements through the strait.

Indonesia's Ministry of Forestry has reaffirmed its commitment to credible and transparent carbon trading governance at the International Emissions Trading Association (IETA) business forum in New York, positioning the country as a key player in the green economy through sustainable forest management. With approximately 120 million hectares of tropical forests, Indonesia is promoting global partnerships for climate investments, bolstered by Ministerial Regulation No. 6 of 2026, which provides legal certainty for carbon credit production and trading, integrating with international standards like ICVCM and Article 6 of the Paris Agreement. This initiative, supported by industry associations and global experts, aims to enhance ESG attractiveness, drive multi-sector forestry businesses, and support Indonesia's FOLU Net Sink 2030 target.

Astra Group's dominance in Indonesia's automotive market is under pressure, with its market share declining to 49 percent in the first four months of 2026 from 51-56 percent the previous year, amid a 12 percent overall market growth to 289,787 units. While Toyota and Daihatsu remain key contributors, supported by commercial vehicles and new hybrid models, aggressive competition from non-Astra brands, particularly Chinese marques like BYD and Denza with 19,247 units sold, is intensifying. The shift towards electrified vehicles is evident, with low-cost green car sales dropping 22.9 percent, signalling changing consumer preferences in the sector.

PT Mandiri Sekuritas has cautioned that the Indonesian government's plan to issue panda bonds amid economic uncertainties poses significant exchange rate risks due to the use of foreign currencies like the Chinese yuan. However, the firm highlights that Indonesia's substantial trade ties with China could provide a natural hedge to mitigate these risks. The move is viewed as a strategic diversification of funding sources to address the government's large bond issuance needs in 2026 and avoid crowding out domestic market liquidity.

The Jakarta Composite Index (JCI) experienced a sharp reversal on Tuesday, initially surging nearly 1% to 6,973.22 before plummeting over 1% to 6,835.74 by 09:16 WIB, amid high market volatility ahead of the Morgan Stanley Capital International (MSCI) index review announcement. Trading volume reached Rp 1.799 trillion with 4.28 billion shares exchanged, reflecting investor caution over potential changes to Indonesia's weighting in the MSCI index, geopolitical tensions, and foreign fund flows. This fluctuation underscores the sensitivity of the domestic market to global index adjustments and external pressures.

Amid stalled US-Iran negotiations and rising geopolitical tensions, market participants are turning their attention to the upcoming US-China summit on 13-15 May 2026, which could signal a thaw in relations strained since Donald Trump's return to the presidency. Key US CEOs including Elon Musk and Tim Cook are reportedly invited, raising hopes for new agreements that might alleviate global financial uncertainties. Meanwhile, investors await critical US inflation data expected to show an uptick, potentially prolonging tight monetary policy by the Federal Reserve, while the Indonesian stock market (IHSG) faces a shortened trading week with these international developments in focus.

A controversy erupted during the final round of the MPR RI's 4 Pillars Quiz Competition at the West Kalimantan provincial level, where Team C from SMAN 1 Pontianak provided a correct answer on the selection process for BPK members but was marked wrong by the jury for allegedly omitting the DPD's consideration, leading to protests from the team. The jury upheld their decision despite rebuttals and requests for audience testimony, resulting in no change to the competition outcomes. In response, MPR leadership has initiated a comprehensive evaluation and issued an apology, highlighting issues in the judging process of this civic education event.

Ahmad Sahroni, Deputy Chairman of Commission III of the Indonesian House of Representatives, has called on police chiefs across the country to issue clear instructions allowing officers to take measured shots at muggers during patrols to neutralise and apprehend them swiftly. This demand comes amid rising concerns over brutal street crimes in Makassar, South Sulawesi, including a recent incident where a 13-year-old boy was slashed with a machete by motorbike gang members. Sahroni emphasised that decisive action is essential to protect public lives and maintain security, warning that hesitation only emboldens criminals.

President Prabowo Subianto has officially reduced the maximum commission fee for ride-hailing apps from 20% to 8%, ensuring drivers receive at least 92% of trip fares, as outlined in Presidential Regulation No. 27 of 2026 on the Protection of Online Transportation Workers. Announced on International Labour Day, the policy has elicited mixed reactions: drivers largely welcome it as a long-awaited improvement, though some doubt its full implementation by app operators, while the industry urges a comprehensive review to maintain the ecosystem's balance without disrupting service affordability or sustainability. This regulatory move aims to bolster driver welfare in Indonesia's gig economy but raises concerns about potential impacts on users and the broader online transport sector.

The price of Antam gold rose by Rp40,000 to Rp2,859,000 per gram as of 09:10 WIB on Tuesday, with the buyback price also increasing to Rp2,676,000 per gram. This fluctuation highlights the volatility in precious metals markets, influenced by global factors, and transactions remain subject to specific tax regulations under PMK No. 34/PMK.10/2017, including PPh Pasal 22 deductions for sales and purchases. Detailed prices for various gold bar denominations are now available on the Logam Mulia website, aiding investors in decision-making.

The Indonesia Stock Exchange (BEI) has designated PT Ekamas Mora Republik Tbk (MORA) shares with Unusual Market Activity (UMA) status due to abnormal trading fluctuations, prompting a sharp decline in the stock price during Tuesday morning's session. Despite the intraday drop of 8.33% to 8,250, MORA shares have shown remarkable gains over longer periods, surging 69.75% in the past week, 80.13% in the last month, and over 1,864% in the past year. The BEI emphasises that UMA does not imply regulatory violations but urges investors to review the company's disclosures and performance before making decisions.

The price of Antam precious metal gold has risen by Rp40,000 per gram to Rp2,859,000 at the LM Graha Dipta Pulo Gadung boutique in Jakarta, following a decline the previous day. This increase aligns with strengthening global gold prices, which closed at US$4,734.09 per troy ounce on Monday and rose further to US$4,751.70 today, amid investor focus on US-Iran diplomacy and upcoming US inflation data. The buyback price also climbed by Rp50,000 to Rp2,676,000 per gram, extending the positive trend for gold over the past two days.

Students from the Faculty of Economics and Business at Universitas Padjadjaran (Unpad) have rejected the proposal for their university to establish a Nutrition Fulfilment Service Unit (SPPG) for the government's free nutritious meals (MBG) programme. The BEM FEB Unpad argues that such involvement risks undermining the university's core educational functions and independence, urging the institution to prioritise internal issues like education costs and academic facilities instead. This stance highlights concerns over the governance of public policy and the potential shift in higher education roles under President Prabowo Subianto's flagship initiative.

The price of premium diesel fuel, such as Shell V-Power Diesel and Vivo Energy's Diesel Primus Plus, has surged to Rp 30,890 per litre as of 10 May 2026, more than doubling from Rp 14,620 in March 2026. This increase has significantly raised the full-tank refuelling cost for the GWM Tank 300 Diesel SUV, which has an 78-litre tank, to approximately Rp 2.41 million—a jump of over Rp 1.26 million from two months prior. Even Pertamina's non-subsidised Dex diesel, now at Rp 23,900 per litre, results in a full-tank cost of Rp 1.86 million, highlighting the broader impact on operational expenses for diesel vehicle owners amid rising fuel prices.

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, is advancing Compressed Natural Gas (CNG) as a cheaper alternative to Liquefied Petroleum Gas (LPG), potentially reducing costs by 30% due to abundant domestic resources and lower transportation expenses. This initiative aligns with President Prabowo Subianto's directive to prioritise subsidies for essential energy needs, aiming to match CNG prices to those of the 3kg LPG cylinders widely used by households. The government is currently conducting trials and studies to refine pricing and distribution mechanisms before full implementation.

Twelve provincial governments, including members of the Forum for Regional Cooperation Mitra Praja Utama (FKD MPU) and two additional provinces, convened in Central Java to strategise on economic growth and national resilience. Central Java Governor Ahmad Luthfi highlighted the need for creative breakthroughs to enhance welfare, reduce poverty, and foster inter-regional synergies amid global fiscal pressures, while Deputy Interior Minister Akhmad Wiyagus praised the forum's role in supporting national development agendas, including cross-border energy and food oversight. The meeting underscored Indonesia's robust economic performance, with Q1 2026 growth at 5.61% and controlled inflation at 2.42%, emphasising the strategic importance of leveraging each province's comparative advantages in agriculture, manufacturing, tourism, and more to bolster national strength.

The Indonesian government has launched the ST016 Savings Sukuk, a sharia-compliant retail investment instrument starting from Rp 1 million, available in two-year and four-year tenors. This product features floating coupons with a minimum rate tied to Bank Indonesia's benchmark, monthly payouts for passive income, and full state guarantees on principal and returns. It provides a secure, sharia-based option for individual investors seeking stable yields amid interest rate fluctuations.

This article explains the decile system used by Indonesia's Ministry of Social Affairs (Kemensos) to determine eligibility for social assistance programmes, categorising households into 10 groups based on socioeconomic indicators, with the lowest deciles (1-4) prioritised for benefits like PKH and Sembako. It provides step-by-step guidance on checking one's decile via the official website or Cek Bansos app and submitting updates to lower a decile if the current classification does not reflect actual economic conditions, involving verification by social workers. The process highlights the dynamic nature of the data in the National Single Social and Economic Data System (DTSEN), ensuring aid reaches those in genuine need amid fluctuating economic circumstances.

The Indonesian rupiah weakened by 0.43% against the US dollar at the opening of Tuesday's trading, reaching Rp17,480 per dollar, amid strengthening of the dollar index to 98.104. This depreciation is driven by global uncertainties, particularly US President Donald Trump's rejection of Iran's response to a peace proposal, heightening market concerns over prolonged conflict and elevated oil prices, which bolsters the dollar as a safe-haven asset. Domestically, market participants await Bank Indonesia's March 2026 retail sales data, following a robust 6.5% annual growth in February fuelled by Ramadan household spending.

Indonesia's House of Representatives Speaker Puan Maharani has urged the government to provide clear information and public protection measures regarding the hantavirus threat to prevent panic, emphasising a calm and transparent approach. Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia has postponed the implementation of mining royalties for commodities like copper, tin, nickel, gold, and silver to develop a more beneficial formula for both the state and businesses. Other notable developments include the Indonesian Navy receiving its first submarine rescue vessel, the Finance Minister affirming the government's debt remains safe at 40.75% of GDP, and an upcoming two-day concert by The Weeknd in Jakarta in September 2026.

Indonesia has reaffirmed its strong commitment to sustainable forest management under President Prabowo Subianto's leadership at the 21st United Nations Forum on Forests (UNFF21) in New York. Forestry Minister Raja Juli Antoni highlighted that this approach integrates climate mitigation, biodiversity conservation, economic resilience, and sustainable development, positioning forests as a foundational element for future generations and national economy. The participation underscores Indonesia's achievements in maintaining national forest cover and promoting inclusive governance, while balancing ecosystem protection with community welfare.

Iran is exploring ways to monetise the seven international underwater internet cables passing through the Strait of Hormuz by imposing transit fees on foreign companies, potentially turning the vital digital chokepoint into a significant revenue source. This proposal, advocated by IRGC-affiliated media outlets, draws inspiration from Egypt's model of levying charges on cables connecting the Red Sea and the Mediterranean. Analysts warn that such measures could disrupt global financial transactions, cloud services, and operations of major tech firms, given the cables' role in handling over $10 trillion in daily financial data flows between Asia, the Middle East, and Europe.

The Jakarta Composite Index (IHSG) opened 1% higher at 6,973.22 points, despite investor concerns over the impending MSCI index announcement, with trading volume reaching Rp406.8 billion. Geopolitical tensions in the Middle East, including fragile US-Iran ceasefire talks and rising Brent crude prices above US$104 per barrel, are adding to global market volatility, while domestically, regulators like OJK express optimism about long-term gains from capital market reforms amid risks of Indonesia's weight being reduced in the MSCI index. This positive opening highlights resilience in Indonesian equities against international uncertainties, with hopes for maintaining emerging market status in future reviews.

Hendarto, a director and beneficial owner of companies within the Bara Jaya Utama (BJU) Group, is undergoing prosecution today at the Central Jakarta Corruption Court for alleged corruption involving credit facilities from Indonesia's Export Financing Agency (LPEI) between 2014 and 2016. The case accuses him of causing state losses of Rp1.06 trillion and US$49.88 million through unlawful acts that enriched himself and others, including using LPEI funds for plantation businesses in protected forest areas. This high-profile trial highlights ongoing efforts to combat corruption in state financial institutions and underscores risks in export financing oversight.

The United Arab Emirates is increasingly challenging Saudi Arabia's dominance in the Gulf, shifting from a unified anti-Iran stance to aggressive competition over oil politics, trade routes, ports, and regional leadership, driven by the UAE's stronger economic resilience with a lower fiscal breakeven oil price. This rivalry has manifested in the UAE's defiance within OPEC, criticism of Saudi-led forums like the GCC, and prioritisation of security ties with Israel over traditional Arab solidarity, accelerated by the Abraham Accords and recent regional conflicts. The emerging divide is evident in the UAE's pressure on Pakistan to repay a $3 billion debt, highlighting how Gulf competition is straining diplomatic balances and reshaping Middle Eastern geopolitics.

The signing of a Joint Declaration of Intent (JDI) between Indonesia's Ministry of National Development Planning/Bappenas and Airbus Asia-Pacific on 5 May 2026 aims to explore cooperation in strengthening domestic industry capacity and developing the maintenance, repair, and overhaul (MRO) sector for Airbus products, supporting Indonesia's 2022-2045 Aerospace Industry Ecosystem Roadmap. However, the opinion piece cautions against over-optimism, highlighting historical collaborations, unfulfilled past agreements like a 2022 MoU worth US$500 million due to financial constraints at PT Dirgantara Indonesia, and challenges such as the political nature of the JDI, Indonesia's weak position in Airbus's Asia-Pacific business map, and the need for substantial financial investment to enhance production capabilities. This underscores the necessity for realistic expectations and concrete business commitments to revive Indonesia's aerospace sector amid global competition.