SOE For Textiles
Jakarta (ANTARA) – Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto announced the plan to establish a new state-owned enterprise (SOE) in the textile sector. This plan was directed by President Prabowo Subianto during a meeting in Hambalang, Bogor, West Java, on January 11, 2026. According to Hartarto, the textile and garment industry is considered to be at the forefront of facing the risks of US tariff policies. “We will establish a new SOE specifically for textiles. We will not revive (old textile companies),” the minister spoke at the Indonesian Business Council (IBC) Business Outlook 2026 event in Jakarta on Wednesday. He explained that based on the results of the completed study, the plan will be followed by the development of a roadmap for strengthening the textile and textile product (TPT) industry. To support this policy, the government has allocated US$6 billion in funding through Indonesia’s investment and sovereign wealth manager, Danantara.
Ride Sharing Industry Could Get Overhaul
Reuters is reporting that a deal is in the work that will significantly affect the ridesharing industry. Millions of Indonesian ride-hailing drivers would receive major increases to financial and social benefits under a draft decree being considered by President Prabowo Subianto, two sources said, threatening the profitability of ride-sharing platforms in their largest market in Southeast Asia. Prabowo is under pressure to respond to drivers’ demands for better pay and conditions, particularly after their involvement in widespread student-led protests in August demonstrated the political clout of the sector’s workforce. The debate also comes amid concerns about driver welfare as a result of a potential merger between the two largest ride-hailing platforms in the country, Indonesia’s GoTo and Singapore-based rival Grab. Critics of the deal say it will create a monopoly that will work against drivers.
2025 Investment a Mixed Picture
The overall investment target for 2025 was met despite stagnant foreign direct investment (FDI), thanks to domestic investors picking up the slack, the Investment and Downstream Minister Rosan Roelani said on Thursday, adding that their role was expected to grow further this year. “The year 2025 was indeed not an easy one because, as we all know, the global economy was still clouded by uncertainty, starting from a global economic slowdown and geopolitical tension to the fragmentation of international trade,” investment minister Rosan Roeslani told a press conference on Jan. 15, noting that realized FDI increased just 0.1 percent last year.
Venezuela Ops Unaffected, Pertamina Says
State-owned energy firm Pertamina said the recent conflict has not affected its operations in Venezuela so far, including those run through its subsidiary PT Pertamina Internasional Eksplorasi dan Produksi (PIEP). In a statement on Sunday, PIEP said it is “monitoring the dynamics closely” as part of “a precautionary approach and the company’s commitment to ensuring safety and operational continuity.” Indonesian officials and business groups also said the crisis has had little impact on the domestic economy, citing Venezuela’s limited role in global oil supply. Finance Minister Purbaya Yudhi Sadewa said, “Venezuela has been inactive in the world’s oil market for a long time. Its production capacity is also limited.” (Jakarta Post)
Freeport Workers Rescued
The Indonesian Military (TNI) rescued 18 workers at gold and copper miner Freeport Indonesia that had been surrounded by armed rebels for three days at a company outpost in the insurgency-plagued Papua region, officials said on Thursday. The rebel group – the Free Papua Movement- says it is fighting for secession of the region from Indonesia, which has controlled half of the resource-rich island since 1969 after decades of Dutch control. The workers were fixing one of Freeport’s electric towers in Tembagapura district in the mountainous Central Papua province, when rebels surrounded them last week, Indonesia defense ministry spokesperson Rico Ricardo Sirait told Reuters. “They intimidated the workers, fired shots to frighten or trouble them psychologically,” Rico said. The military used drones to deliver food and medicine to the stranded workers, before evacuating them to safety after three days, he added. Freeport Indonesia and the spokesperson of Papuan separatists did not immediately respond to a request for comment. The military did not provide details on the operation to extricate the workers, but said no shots were fired. “The rescue operation was carried out in extremely difficult terrain with a high level of threat and time constraints as crucial factors,” the operation commander Maj. Gen. Lucky Avianto said in a statement.
Miners Seek Faster Quota Approvals
Local miners are urging the government to speed up approvals of annual work plans (RKAB) after delays earlier this year forced PT Vale Indonesia to suspend operations. Industry groups warn that prolonged backlogs could undermine investment certainty and disrupt long-term planning, even as temporary permits allow limited production. Indonesian Mining Association (IMA) chairman Rahmat Makkasau said miners have complied with regulations and expect smoother implementation of the revised rules. “We view the RKAB mechanism as a standard procedural requirement and expect its approval to be carried out expeditiously and without undue impediment to ensure operational continuity,” he told The Jakarta Post. (Jakarta Post)
Banking Sector 2026 Gains Altitude
Indonesia’s banking sector faced significant pressure in 2025 as weak domestic demand, fiscal consolidation and tight liquidity weighed on both funding and loan growth. Sluggish government spending and limited repatriation of export proceeds kept funding costs high, while cautious households and MSMEs reduced demand for working capital and consumer loans. Conditions improved in the second half of the year as liquidity strengthened, corporate cash flows recovered and third-party fund growth picked up. Entering 2026, prospects are more constructive, supported by more timely fiscal disbursement, policy support for key sectors and a gradual recovery in middle-class purchasing power, though banks remain mindful of lingering risks. (Jakarta Post)
Startup Fraud Dents Investor Confidence
A string of high-profile digital fraud cases involving Indonesian startups has weakened investor confidence and reshaped funding patterns across the country’s startup ecosystem. According to BNI Venture, foreign investors have become increasingly cautious, contributing to a sharp drop in Indonesia’s deal value despite the country still ranking high in deal volume. “Foreign investors have become extremely cautious. Their confidence in Indonesia’s startup ecosystem has clearly declined,” said BNI Venture director Eddi Danusaputro. As a result, investors are shifting toward lower-risk, more transparent business models such as digitally enabled retail and food and beverage startups. (Indonesia Business Post)