Indonesia Plans USD Deposit Incentives to Attract Remittances Back
The Finance Minister recently announced that within a month, targeted incentive policies will be introduced to encourage Indonesian citizens abroad to transfer their USD deposits back to the domestic banking system. This policy is part of President Prabowo's economic strategy and is expected to attract billions of USD in overseas deposits, supplementing the country's foreign exchange reserves (currently around USD 138 billion). The government plans to offer tax breaks and interest rate incentives, simplify cross-border transfer procedures, and prioritize USD financing for strategic projects. The relevant policies will enhance commercial banks' USD liquidity (current loan-to-deposit ratio at 92%), reduce the government's foreign debt financing costs (approximately USD 24 billion in foreign debt maturing in 2026
Indonesia Issues New Regulation to Simplify TKDN Certification Process
Indonesia Plans to Add 6 New Special Economic Zones
Finance Minister Confirms Indonesia Will Not Impose New Taxes in 2026
Latest Regulations for Foreign Citizens Entering Indonesia
Indonesia Establishes the North Java Coast Authority
President Prabowo signed a presidential regulation establishing the North Java Coast Authority (Badan Otorita Pantura), with two key tasks: leading the construction of the giant sea wall project and attracting investment to the north coast region. The chairman is Deputy Minister of Marine Affairs and Fisheries Didit Herdiawan Ashaf, with vice chairmen Darwin Trisna Djajawinata and Suhajar Diantoro. The steering committee includes Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Y
Indonesian Ministry of Industry Hosts Indonesian Specialty Agricultural Products Exhibition
The Ministry of Industry will hold the 2025 Indonesian Specialty Products Business Matching and Exhibition on August 5-8, 2025, with 51 companies participating, showcasing specialty products such as coffee, tea, cocoa, milk, fruits, as well as alcoholic beverages and tobacco. This event aims to promote cooperation between Indonesian specialty product enterprises and international businesses, enhance brand international influence, and explore underdeveloped alternative markets. The Deputy Minister of Industry stated that in the first quarter of 2025, the food and beverage industry accounted for 41.15% of Indonesia's non-oil and gas industrial GDP and 7.2% of the national GDP. From January to April 2025, export
Indonesia Builds Global Green Mineral Supply Chain
In the global energy landscape transitioning to low carbon, smelters have become a new geopolitical stage. The past struggle for influence over oil and strategic straits has now shifted to control over the purification process of key minerals such as nickel, cobalt, and lithium, which are core raw materials for electric vehicles, solar panels, etc. Countries that control downstream processing can dictate prices, supply, set environmental standards, and hold strategic positions in international negotiations. China dominates the global mineral supply chain competition through an integration strategy, mining cobalt in the Congo, lithium in Chile, and building large processing centers, supported by government low-cost financing and technology subsidies.
Travelers Entering Indonesia Must Fill Out New Arrival Card
The Directorate General of Immigration has launched the latest version of the online arrival card effective immediately. All travelers heading to Jakarta, Surabaya, and Bali are required to fill it out. Travelers can scan the QR code directly or visit the official website https://allindonesia.imigrasi.go.id/ to complete their personal information. This code integrates immigration and customs information. After logging into the website, travelers can select Chinese language display in the upper right corner, then fill in the required information according to the page prompts. Finally, an arrival QR code will be generated, which travelers can save by taking a screenshot or downloading the arrival card QR code.
Bali Consulate General Reminds of Volcanic Eruption Impact
At noon on July 7, 2025, Mount Lewotobi in East Nusa Tenggara erupted violently again, with ash columns reaching approximately 18,000 meters. Since mid-June, the volcano's alert level has remained at the highest level, Level 4. Local authorities have asked residents and tourists not to enter within a 7-kilometer radius of the crater. The Consulate reminds Chinese citizens in its jurisdiction to closely follow warning information issued by relevant Indonesian authorities, enhance safety awareness, strengthen self-protection, and avoid entering volcanic warning zones. Due to the high concentration of volcanic ash, temporary flight cancellations or disruptions at airports in Bali, West Nusa Tenggara, and East Nusa Tenggara cannot be ruled out.
Seven Major Commodities with Surging Exports from China to Indonesia
The Deputy Minister of Industry recently stated that after the US President announced new import tariffs on some countries, triggering a trade war, China lost its main market in the US, and a large number of products were diverted to other countries, with Indonesia becoming an important destination. This has led to an influx of Chinese products into the Indonesian market, impacting local industries. In June 2025, Indonesia's Manufacturing Purchasing Managers' Index was 46.9, in contraction territory, mainly due to weak new demand in export markets, global market sentiment, and trade policy uncertainty; labor-intensive industries such as textiles and automotive parts, as well as electronics and home appliances, are facing pressure from declining export demand; the conflict between Iran and Israel could disrupt energy supplies, thereby affecting global supply chains. The seven categories of commodities with surging exports from China to Indonesia include: HS 23 (food industry waste and processed feed) up 11.17%, HS 03 (fish and crustaceans) up over 100%, HS 18 (cocoa preparations and processed products) up over 100%, HS 09 (coffee, tea, mate and spices) up 53.42%, HS 48 (paper and paperboard) up 28.52%, HS 19 (cereals, flour, starch, milk and pastry) up 24.91%, HS 44 (wood products and charcoal) up 22.46%. China's agricultural exports to Indonesia surged to US$477,000 (approximately IDR 7.72 billion), up 30%; while during the same period, China's agricultural exports to the US decreased by US$1.17 billion (approximately IDR 18.95 trillion). Indonesia's high dependence on steel and aluminum imports from China is considered a potential structural issue. He emphasized that the government needs to pay attention to the impact of trade diversion on its import structure, formulate protective policies, strengthen local industries, avoid long-term dependence on imports, and at the same time explore the potential of the domestic agricultural industry and address challenges.
Indonesia Relaxes Import Restrictions on Ten Categories of Goods
The Coordinating Minister for Economic Affairs recently stated that the government has revised Trade Minister Regulation No. 8 of 2024 and issued Trade Minister Regulation No. 16 of 2025. The regulation was formulated after proposals from government departments, relevant associations, and stakeholders, followed by a regulatory impact analysis and a technical working meeting. It also announced the 10 categories of goods benefiting from import relaxation: forestry products, subsidized fertilizers, plastic raw materials, other fuels, and food trays are free from import restrictions; while saccharin, stevia and alcohol-containing flavor preparations, specific chemicals, pearls, insoles, and two-wheeled and three-wheeled bicycles only need to go through the relevant procedures with inspection agencies.