Airlangga Says Indonesia’s Export Tariff to the US Is Now 15 Percent
Coordinating Minister for the Economy Airlangga Hartarto stated that tariffs on the export of Indonesian products to the United States have now dropped to 15 percent. Previously, the Indonesia-US trade agreement had agreed to reduce tariffs from 32 percent to 19 percent. The new figure refers to the tariffs announced by President Donald Trump, after the US Supreme Court’s decision to cancel reciprocal tariffs. “The global tariff is 15 percent, so what applies is the global tariff of 15 percent,” said Airlangga at the Ministry of Manpower office, Friday, February 27, 2026. (Tempo)
Iran War/Oil Prices Challenges Budget Assumptions
The United States-Israeli attack on Iran has sent global oil prices surging past US$80 per barrel, putting additional strain on the state budget, which could force painful adjustments. Brent crude oil exceeded $85 on Tuesday, marking the highest level since June 2024, and far surpassing the $70-per-barrel assumption in the 2026 state budget. Analysts expect the figure to remain elevated over the coming days and possibly hit $100 per barrel, which would put immense pressure on the budget. Putra Adhiguna, managing editor at the Energy Shift Institute (ESI), estimates that every $1 increase in global oil prices would drive up the state’s fuel subsidies bill by Rp 7 trillion ($414 million). (Jakarta Post)
Indonesian Businesses Brace For Iran War
Businesses are bracing for potential economic fallout from the escalating conflict in the Middle East, as strikes by the United States and Israel against Iran are expected to unsettle markets, imperil energy supplies and push up input costs. “[Local] businesses are currently concerned about rising oil and gas prices, as well as higher international logistics costs. Even without a physical closure of key shipping routes, uncertainty alone can drive up both,” Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani told The Jakarta Post on Monday. The impact on businesses will vary, with energy-intensive and trade-exposed industries likely to feel the most immediate pressure, Shinta said. “Indirect effects through higher global energy prices, trade disruptions, food inflation, currency volatility and financial market sentiment may prove even more significant for domestic businesses,” she added. Saleh Husin, deputy chairman for industry at the Indonesian Chamber of Commerce and Industry (Kadin), told the Post on Monday that sectors dependent on imported raw materials, such as petrochemicals, steel, textiles, electronics and automotive, may see rising logistics and energy costs, as well as shipment delays that erode their profit margins. US and Israeli strikes that killed Iranian Supreme Leader Ayatollah Ali Khamenei on Saturday have sown chaos, with Iranian retaliation rocking Gulf cities, airlines canceling flights and tankers halting transit through the Strait of Hormuz, a vital shipping lane for oil leaving the Middle East. Brent crude jumped 13 percent to US$82 per barrel on Monday morning, the highest level in 14 months. Flag carrier Garuda Indonesia said on Sunday that it had suspended all Doha flights until further notice following the temporary closure of Qatar’s airspace. International shipping has nearly ground to a standstill after the Iranian navy issued a ban on commercial vessels transiting the Strait of Hormuz, which carries about a fifth of global oil and gas supplies. (Jakarta Post)
Online Fraud
Indonesia has suffered an estimated total loss from online scams of around Rp 9.1 trillion (US$542 million), according to a recent report that claimed the country is facing a “digital fraud” emergency. The report, issued by the Indonesian Anti-Slander Society (Mafindo) on Tuesday, is based on 432,637 reports received by the Indonesia Anti Scam Center (IASC) between November 2024 and January. IASC is a collaborative initiative between a task force led by the Financial Services Authority (OJK) and banks, e-commerce platforms and other financial firms. A separate survey conducted by Mafindo with 179 respondents based in five cities across the country found that most of the digital scams took place on WhatsApp messaging application. The schemes ranged from fraudulent investment and lottery, fake job offers, online marketplace frauds and love scams. The wide range of scams launched against victims highlighted the need to have different tactics which may complicate broad-based prevention efforts, Mafindo wrote in the report.
(Jakarta Post)