Indonesia

The US State Department's 2026 Investment Climate Statement, published in September, says Indonesia has opened many sectors to foreign investors since dropping its Negative Investment List in 2021. It also says investors still face restrictive regulations, legal uncertainty, economic nationalism, and requirements to partner locally or buy and manufacture locally, all of which should be built into deal structures.

U.S. Department of State · 2026-09-30

First-half 2026 investment figures, republished during the window, show foreign direct investment of IDR507.64 trillion, 50.2% of total realised investment, with domestic investment making up the rest. Foreign investors are therefore still putting in roughly as much as domestic ones despite the weak currency.

Jakarta Investment Centre (Pemprov DKI Jakarta) · 2026-09-30

The Finance Minister said foreign inflows into government bonds and Bank Indonesia's rupiah securities (SRBI) reached Rp140.7 trillion as of 14 September, a recovery after earlier outflows. Monthly data show mixed signals, however: SRBI and equities saw net non-resident selling during September.

ANTARA News; Dewan Ekonomi Nasional · 2026-09-23

Alongside the September rate hold, Bank Indonesia added measures to attract foreign capital, including larger hedging incentives for portfolio inflows, foreign loans and FDI-related transactions, and further work to deepen domestic money and FX markets. For entrants, this could make it cheaper to hedge rupiah exposure on investment and intercompany flows.

Kenanga Investment Bank (Economic Viewpoint) · 2026-09-23

No new tariff or trade-policy measures were found in the reporting window. The US–Indonesia Agreement on Reciprocal Trade signed in February 2026 is still the main framework for US–Indonesia trade.

Aperture editorial note · 2026-10-10

At its 22–23 September meeting, Bank Indonesia left the BI-Rate at 5.75% and kept its 2026 growth forecast at 4.9–5.7%. The rupiah traded near IDR17,876/USD, down about 7.1% this year and weaker than most regional currencies, so entrants with dollar-denominated costs or rupiah revenue should plan for currency risk and high local borrowing costs.

Kenanga Investment Bank (Economic Viewpoint); Bank Indonesia · 2026-09-23

Annual consumer price inflation rose to 3.28% in September from 3.19% in August, according to data released on 1 October, leaving it just below Bank Indonesia's 3.5% ceiling. The National Economic Council pointed to Brent oil near USD99 a barrel and El Niño risks to food production as further upward pressure, so input and wage costs may keep rising.

Trading Economics (BPS data); Dewan Ekonomi Nasional Monetary Brief September 2026 · 2026-10-01

On 29 September the House passed the 2027 state budget into law, with spending of Rp4,106.3 trillion, revenue of Rp3,435.1 trillion and a deficit of 2.4% of GDP. Finance Minister Suahasil Nazara called the fiscal stance expansive, which points to continued government-led demand in priority sectors next year.

RRI; Reuters via Kontan · 2026-09-29

About 50,000 workers held coordinated protests in at least 30 cities on 10 September to pressure lawmakers debating the Labour Protection Bill, causing major traffic disruption. More protests are likely while the bill is in parliament, and the final law could change employment terms for foreign-owned firms.

Geobit Indonesia Security Brief (14 Sep 2026) · 2026-09-14

On 9 September suspected OPM fighters ambushed an agriculture agency convoy in Jayawijaya Regency, Papua, killing three civil servants; this followed an attack on a Freeport convoy on 2 September. The incidents are consistent with the active-conflict flag and mean resource and logistics operations in Papua need tight security planning.

Geobit Indonesia Security Brief (14 Sep 2026) · 2026-09-14

Ash from the Anak Krakatau eruption on 6–7 September shut two airports serving Jakarta and five others, affecting more than 270,000 travellers. A factory fire in the Sei Mangkei Special Economic Zone killed three workers. Both are reminders to plan for natural-hazard disruption and to check industrial-safety compliance.

Geobit Indonesia Security Brief (14 Sep 2026) · 2026-09-14