GoTo–Grab Merger Sparks Overreach Fears
Despite repeated denials from GoTo and Grab, reports and government statements indicate that Jakarta is quietly encouraging a merger between the two ride-hailing giants. Analysts warn that the government’s involvement may be “excessive,” potentially favoring select shareholders while sidelining the public. The speculation intensified after State Secretary Prasetyo Hadi confirmed that merger talks were underway as part of broader plans to regulate the sector. Meanwhile, shareholders reportedly pushing to remove GoTo CEO Patrick Walujo have added further uncertainty to the process. Experts caution that a merger could risk monopoly concerns, with one analyst saying, “Without competition, both end users and driver-partners stand to lose.” (Jakarta Post)
Indonesia Becomes Key Gold Market
Indonesia is quickly emerging as one of gold’s “key markets of the future,” with the World Gold Council (WGC) saying the country could one day rival China and India. A new WGC report shows that 67 percent of Indonesians already have some exposure to gold, driven by rising incomes, a young population, and strong cultural familiarity. WGC executive Shaokai Fan highlighted gold’s strong performance, noting, “It’s really been a star performer both this year and last year.” The survey also found exceptionally strong demand, with 85 percent of current investors planning to buy more in the next year. Global factors such as continued central bank buying and geopolitical uncertainty are expected to further support gold demand.
Half Million Workers Will Go Overseas
With an apparent lack of jobs locally in skilled trades such as welding Indonesia is preparing to send as many as half million workers abroad. Coordinating Social Empowerment Minister Muhaimin Iskandar has announced that the government aims to send 500,000 skilled workers overseas under the SMK Go Global program. Rp 15 trillion (US$896 million) to Rp 25 trillion in budget spending has been earmarked for the purpose. “The program will begin in 2026, with preparations starting this year. First, all vocational schools (SMKs) must begin preparing from the upstream side. On the downstream side, we are strengthening partner countries and improving placement mechanisms and systems, so they operate more effectively and quickly,” Muhaimin said. The largest placement destinations were Malaysia, Taiwan, Hong Kong, Japan and Singapore. A total of 297,434 migrant workers were placed in 2024.
Consumer Confidence Rises With Retail Sales
Retail sales picked up last month as households geared up for the Christmas and New Year holiday season, while consumers grew more upbeat about the economy after months of waning optimism. According to preliminary data from Bank Indonesia (BI) published on Tuesday, the Retail Sales Index (RSI) is projected to climb to 219.7 in October, marking a solid 4.3 percent year-on-year (yoy) increase from 210.6 in October 2024.In a statement released alongside the data, BI spokesperson Ramdan Denny Prakoso said the annual growth “primarily stemmed from increasing sales of spare parts and accessories, food, beverages and tobacco, cultural and recreational goods as well as other household equipment”.
Notably, robust growth was also recorded a month earlier in September when the RSI stood at 218.3, up 3.7 percent from the same period last year. However, that figure also represented a 2.4 percent month-to-month contraction from 223.6 in August. Sales in three product categories remained in negative territory in October, with information and communication technology (ICT) products showing the steepest decline, plunging 33 percent yoy. ICT product sales have continued to weigh on overall growth, consistently recording double-digit contractions since March. The upticks align with the trend reported in BI’s Consumer Survey for October 2025, released on Monday. That survey showed the Consumer Confidence Index (CCI) jumped to 121.2 last month from 115 in September, reflecting largely improved expectations about the economy after the index touched a 3.5-year low in August as respondents viewed the job market as sluggish. (Jakarta Post)
Radiation Fears Subside
Exports of footwear to the United States “continue uninterrupted”, the government has said, following the recent return of two containers of locally made shoes over suspected radioactive contamination linked to a metal company in Serang, Banten.“In the past four weeks, with detection devices installed at the Cikande [industrial estate] exit gate, no new contamination has been reported,” Bara Krishna Hasibuan, diplomacy and communication head of the cesium-137 task force told reporters on Monday on the sidelines of the US-Indonesia Investment report briefing by the American Chamber of Commerce in Indonesia (Amcham) and the US Chamber of Commerce. “That means we’ve truly made significant progress in decontaminating the Cikande area,” Bara said. He also noted that the contamination detected in the footwear shipments appeared to have occurred within “the same timeframe” from the “same source” as the earlier cesium-137 (Cs-137) contamination cases affecting shrimp and clove exports.
IMF Praises Indonesia
The International Monetary Fund has praised Indonesia for maintaining economic growth and containing inflation amid mounting pressure from external factors but emphasizes that the country needs the right “policy mix” to secure the future. “The Indonesian economy has shown resilience amid adverse shocks”, IMF mission chief for Indonesia Maria Gonzalez said in the statement, adding that the archipelago’s gross domestic product was projected to grow by 5 percent in 2025 and 5.1 percent next year.As key external risks to that projection, Gonzalez named trade tensions, prolonged uncertainty and global financial market volatility.
“On the domestic side, large policy shifts, if not implemented with sufficiently robust guardrails, could build up vulnerabilities. Her team’s analysis projected the fiscal deficit this year to close at 2.8 percent of GDP, in line with the government’s latest projection of 2.78 percent made in the middle of the year, and below the legal cap set at 3 percent of GDP. The IMF projects a slight increase in the deficit to 2.9 percent of GDP for next year, “based on more conservative growth and revenue projections than those envisaged in the 2026 budget”, said Gonzalez. Next year’s state budget plan foresees a lower deficit at 2.68 percent of GDP. (Jakarta Post)