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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.

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

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

DKI Provincial Legislator Questions Governor Over Cattle Imports from Australia Rather Than Domestic Stock

A DKI Jakarta provincial legislator has criticised the provincial government's decision to import 3,100 cattle from Australia, arguing it violates Indonesia's Food Law which requires government food reserves to originate from domestic production. The import marks the first cattle shipment in 28 years and is conducted through state-owned enterprise Perumda Dharma Jaya, with a total quota of 7,500 head approved for the programme.

Cub and Sport Motorcycles Become Preferred Models in Honda's Commercial Fleet Segment

Honda's commercial fleet segment, whilst smaller than retail sales, represents a significant and consistent revenue stream for the Japanese manufacturer in Indonesia. PT Astra Honda Motor estimates the fleet segment accounts for 245,000 to 294,000 units annually out of total 2025 sales of 4.9 million units, with cub and entry-level sport models—particularly the Revo and Verza—dominating demand due to their fuel efficiency, durability, and low maintenance costs for operational use.

Hillside Collapse Closes Kokap Road in Kulon Progo, One Home at Risk

A landslide in the Menoreh hillside area of Kulon Progo has blocked part of the provincial road between Kokap and Girimulyo on Friday, 27 February 2026, following heavy rainfall. The disaster authority reports that whilst the volume of soil material was relatively modest, fallen trees have obstructed traffic, and one residential home located directly above the collapse site now faces potential danger.

The Challenging Journey of Pakde Prayogo from Lecturer to the Skincare Industry

Prayogo Waluyo, known as Pakde, transitioned from a stable teaching career to founding HIQWEEN, a beauty brand addressing hyperpigmentation issues, alongside his wife. His entrepreneurial journey involved significant personal sacrifices, major financial losses, and the challenges of building a company from scratch, eventually scaling to 28,000 daily shipments whilst maintaining integrity and quality standards.

Resident Shocked by Rp 222,000 Parking Fee at Ananda Babelan Hospital for Just 3 Days

A resident of Bekasi was charged Rp 222,000 for three days of motorcycle parking at Ananda Babelan Hospital whilst his child was hospitalised with dengue fever, sparking viral outrage on social media. The hospital's security chief explained that non-membership parking is charged at Rp 3,000 per hour without daily caps, whilst membership parking costs only Rp 20,000 for three days, and the resident had failed to register one of his two motorcycles as a member.

Minister of Social Affairs Receives Report on Concerning Social Care Facilities, Alleged Human Rights Violations

The Indonesian Mental Health Association (PJS) filed a report with the Minister of Social Affairs Saifullah Yusuf, alleging that approximately 20,000 people with mental disabilities are confined in social care facilities that restrict their freedom and violate human rights. The report documented cases of severe mistreatment, including confinement in overcrowded rooms and physical restraints, prompting the minister to pledge professional oversight and follow-up investigations of these facilities.

KPK Arrests Budiman at Customs Headquarters Over Evidence Tampering and Flight Risk Concerns

The Corruption Eradication Commission (KPK) arrested Budiman Bayu Prasojo, Head of the Customs Enforcement and Investigation Intelligence Section at Indonesia's Directorate General of Customs and Excise (DJBC), on suspicion of corruption related to illegal goods importation. KPK officials justified the arrest by citing concerns that Budiman would destroy evidence and attempt to flee, following the discovery of Rp 5 billion in cash found in Ciputat, Tangerang Selatan.

Bali Police Establish Six Foreign Nationals as Suspects in Abduction of Ukrainian Citizen

Bali Police have designated six foreign nationals as suspects in the alleged abduction of a 28-year-old Ukrainian citizen, with investigators identifying the suspects through vehicle tracking, CCTV analysis, and GPS data. Evidence including blood traces found at a villa in Tabanan and inside a rental vehicle has linked the suspects to the case, and Bali Police are coordinating with Interpol to issue a red notice for suspects who have reportedly fled the country. Authorities have confirmed that s

Temanggung Social Services: Food Aid Distribution for January-March 2026 to Commence Shortly

The Temanggung District Social Services office in Central Java will soon distribute food assistance (bansos sembako) to 63,721 beneficiary families for the January-March 2026 period, with each family receiving IDR 200,000 per month for a total of IDR 600,000 over three months. The assistance will be distributed via bank transfer through Bank Rakyat Indonesia to ensure proper targeting and to help low-income families meet basic needs during the period leading up to Eid. The distribution forms par

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260,470
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1012
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1994-2026
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