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This Week in the Indonesian Economy (20-26 Feb 2026)

The week of 20 to 26 February 2026 proved one of the most consequential in Indonesia's recent economic calendar, defined above all by the deepening of the Indonesia-United States trade partnership, a roiling national debate over village cooperatives and industrial policy, and the persistent challenge of managing a vast archipelago on the cusp of its annual Eid al-Fitr exodus.

This Week in Indonesian Business and Investment (20-26 Feb 2026)

The week of 20 to 26 February 2026 will be remembered primarily as the week Indonesia staked its claim on the global trade map, signed a landmark agreement with the United States, and then watched, with some unease, as the legal foundations beneath that deal began to shift.

Student Protest at National Police Headquarters; Officers Respond with Islamic Prayers

Students staged a demonstration outside the Indonesian National Police (Polri) headquarters in South Jakarta on Friday, 27 February 2026, with police responding to protest chants by reciting Islamic prayers rather than engaging verbally. The demonstration was held under strict police supervision, with officers maintaining disciplined formations and following directives from Metro Jaya Police Commissioner Asep Edi Suheri to remain calm and not provoke crowds during the holy month of Ramadan.

Sentenced to Two Years' Imprisonment, Delpedro: Deeply Disappointed, Illogical

Delpedro Marhaen Rismansyah and three other defendants facing charges related to instigating the August 2025 demonstrations have rejected the prosecutor's request for two-year prison sentences, which they consider unreasonable. The defendants, represented by Muzaffar Salim, plan to present their defence statements at the next hearing scheduled for 2 March 2026, emphasising that the case ultimately concerns the future of Indonesian youth and civil liberties rather than the accused themselves. The

Kalideres Terminal Remains Quiet Three Weeks Before Eid

Kalideres Terminal in West Jakarta remains unusually quiet with low passenger numbers three weeks before Eid, bucking the trend of previous years when terminals would be crowded weeks in advance. Terminal workers and operators attribute the decline to weakened economic conditions and the proliferation of informal transit terminals operating outside official facilities, which divert passengers and revenue from the formal terminal.

Cabinet Secretary Teddy: Free Nutritious Meals Programme Does Not Reduce Education Spending

Cabinet Secretary Teddy Indra Wijaya has addressed concerns that the Free Nutritious Meals Programme (MBG) is reducing education spending, clarifying that all education programmes from previous administrations remain operational and have been expanded. The government is allocating Rp 769.1 trillion (20 per cent of the 2026 State Budget) to education, with Rp 223.55 trillion specifically for the nutrition programme, whilst simultaneously expanding infrastructure renovation, teacher incentives, an

US Reciprocal Tariffs Focused on Reducing Deficit Rather Than Opening Markets

Research from Indonesia's INDEF think tank argues that US reciprocal tariff policies are primarily driven by domestic concerns to reduce America's trade deficit exceeding 1 trillion dollars, rather than genuinely opening balanced market access for partner nations including Indonesia. As the US represents 10-11 per cent of Indonesia's non-oil exports, the country faces heightened competitive pressures and must pursue export market diversification, improve domestic production efficiency, and stren

Prabowo Holds Limited Cabinet Meeting at Kertanegara Following Return from United States and Jordan

President Prabowo Subianto convened a limited cabinet meeting at the presidential residence in Kertanegara on 27 February following his diplomatic tour of the United States, Jordan, and the United Arab Emirates. During his foreign visits, Prabowo secured a reciprocal trade agreement with the United States granting zero tariffs on 1,819 Indonesian products, met with King Abdullah II of Jordan to discuss Middle Eastern peace initiatives, and engaged with UAE leadership on strategic partnerships. T

Ministry of Agrarian Affairs and Spatial Planning Declines Comment on Hotel Sultan Operations

The Deputy Minister of Agrarian Affairs and Spatial Planning has stated the ministry will not comment on the ongoing operations of Hotel Sultan, a disputed property in the Gelora Bung Karno area, citing respect for ongoing court proceedings. PT Indobuildco, owned by Pontjo Sutowo, has demanded compensation valued at Rp 28.292 trillion equivalent to the hotel's valuation, and its legal team is challenging the execution of a court ruling that favoured the government's claim to the land. The disput

Cabinet Secretary Teddy Denies Free Nutritious Meal Programme Cuts Education Budget: All Programmes Running, Even Enhanced

Cabinet Secretary Teddy Indra Wijaya has rejected claims that the free nutritious meal (MBG) programme is reducing education funding, asserting that the narrative is incorrect and contradicts facts. He emphasised that all previous education programmes, including the Smart Indonesia Card and Smart Indonesia Programme, continue to operate, whilst President Prabowo Subianto has additionally introduced the People's School (Sekolah Rakyat) initiative, which has already enrolled nearly 16,000 to 22,00

Bandung Transportation Department increases free exodus programme quota by one hundred for 2026 Eid holiday

The Bandung Regency Transportation Department has expanded its free Eid exodus programme for 2026, increasing the quota from 600 to 700 participants through a new partnership with Bank Jabar Banten, which provides two additional buses. The department will prioritise individuals already on the waiting list from the initial registration phase, with departure scheduled for 17 March 2026 heading primarily towards Central Java, aiming to reduce traffic accidents during the holiday period.

Flexible Tuition Fees at UNM Enable Young People to Access Digital Business Education

Universitas Nusa Mandiri (UNM) has introduced flexible, installment-based tuition payment options for its Digital Business degree programme to improve access to quality higher education for young Indonesians. The initiative, led by programme head Lia Mazia, aims to ensure students can focus on developing digital marketing, entrepreneurship, and business management competencies without financial strain whilst pursuing studies in the rapidly growing digital economy sector.

Bio Farma: BPOM WLA Status Facilitates Export of Indonesian Pharmaceutical Products

Indonesia's Food and Drug Authority (BPOM) has achieved WHO Listed Authority (WLA) status, recognising its regulatory standards as equivalent to those of developed nations. This status is expected to facilitate pharmaceutical and vaccine exports, boost domestic industry confidence, and enhance the competitiveness of Indonesian health products globally.

Chants of "Killer Police" Echo at National Police Headquarters as Students Demand Severe Punishment for Bripda Mesias

Thousands of students from Indonesian universities gathered at the National Police Headquarters (Mabes Polri) in Jakarta on 27 February 2026 to demand police reform and justice following the death of 14-year-old Arianto Tawakal, a student from Tual, Maluku, who allegedly died from assault by a Brimob member, Bripda Mesias Siahaya. The demonstrations, organised by student executive bodies, were marked by chants of "killer police" and calls for strengthened civilian oversight (supremasi sipil) of

KPK Uncovers Role of Customs Officer in Collecting Gratuity Funds from Importers

The Corruption Eradication Commission (KPK) has exposed a customs official with initials SA who allegedly managed gratuity payments from various companies and importers since November 2024, relating to tax arrangements on counterfeit goods. KPK investigators recovered approximately Rp5.19 billion in cash from a safe house in Ciputat, Tangerang Selatan, with six individuals already designated as suspects, including customs officials and representatives of a cargo company involved in the scheme.

Minister Trenggono Discovers Building Specification Discrepancies in KNMP Project in East Lombok

Marine and Fisheries Minister Sakti Wahyu Trenggono identified specification mismatches in the Red-White Fishermen's Cooperative (KNMP) building in East Lombok and instructed contractors to undertake immediate repairs. The 100-location KNMP programme, funded at IDR 23 billion, is targeted for completion by July 2026, with 65 buildings currently completed and others in finishing stages.

Magelang Regent Ensures Free Nutritious Meals Programme Pricing Complies with Regulations

Magelang Regent Grengseng Pamuji has affirmed that the pricing for the Free Nutritious Meals Programme (MBG) is strictly standardised and implemented according to central government regulations, with portions priced at Rp8,000 for small servings and Rp10,000 for larger ones. The regency has coordinated with the National Nutrition Agency (BGN) to address public complaints regarding inconsistent meal quality and nutritional standards across regions, aiming to synchronise nutrition quality standard

New Risks Emerge from Trump Tariffs as Researchers Warn of Geopolitical Dangers

A researcher from the Center for Strategic and International Studies (CSIS) has warned that Indonesia's Agreement on Reciprocal Trade (ART) with the United States poses significant geopolitical risks, despite government claims of market access benefits. The analysis reveals that whilst Indonesia secured 0% tariffs on 1,819 products, these gains represent only 2% of total trade and lack protective clauses comparable to neighbouring countries, whilst the agreement may compel Indonesia to sanction

India to invest in Indonesian metal downstream industry

India's Ministry of Steel has expressed interest in investing in Indonesia's metal downstream industry, with Indian companies being encouraged to expand operations in the sector. The two countries are discussing a memorandum of understanding covering cooperation in metal downstreaming and capital goods manufacturing, which will be formalised at ministerial level and reviewed in coordination with Indonesia's Foreign Ministry.

Angkasa Pura Adjusts Parking Tariffs at Lombok Airport

PT Angkasa Pura I has announced parking tariff adjustments at Lombok International Airport effective 1 March 2026, including increases for two-wheelers, four-wheelers, six-wheelers, and overnight parking. The increases, the first since 2021, are intended to support improved parking infrastructure and services, including modernised technology, improved payment systems, and enhanced facilities. The tariff adjustments have received support from the Central Lombok Regency government and the West Nus

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260,623
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1012
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1994-2026
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