Chinese funds remain a major source of investment in Indonesia
In 2025, total foreign direct investment (FDI) flowing into Indonesia reached 900.9 trillion rupiah, a slight increase of 0.1% compared to the previous year. Among them, Singapore was the largest source of foreign investment for Indonesia, leading the five regions in Asia. The Coordinating Minister for Investment and Downstream Industry, who also serves as the Chairman of the Investment Coordinating Board, revealed that the five regions with the highest investment in Indonesia in 2025 all came from Asia, with Singapore topping the list with an investment scale of approximately US$17.4 billion (equivalent to 293.6 trillion rupiah). Key areas of foreign investment focus include base metals and metals
Indonesia's Tax Gap Widens, Finance Minister Targets Non-compliant Chinese-invested Enterprises
Indonesia's First Batch of Frozen Durian Officially Enters Chinese Market
China Remains Indonesia's Largest Export Destination
Start Date of Ramadan 2026 in Indonesia Confirmed
Indonesia Plans to Achieve One Million Barrels of Daily Crude Oil Production by 2030
Indonesia has set a daily crude oil and natural gas production target of 610,000 barrels in the 2026 State Budget, an increase from the 605,000 barrels per day target set in the 2025 budget. The government has also proposed a long-term plan to gradually increase production over the next few years, aiming to achieve a target of 1 million barrels per day by 2030. The Deputy Minister of Energy and Mineral Resources noted that to achieve this long-term target, Indonesia needs to add an average of 100,000 barrels of daily production each year, but achieving this goal is not easy and requires overcoming many challenges. At the Indonesian Upstream Oil and Gas Special Regulatory Agency Business Support Coordination Meeting held in Bogor Regency
List of 2026 Provincial Minimum Wage Standards in Indonesia
Indonesian provinces have successively finalized the 2026 Provincial Minimum Wage Standards (UMP), serving as the minimum reference basis for salary calculations between companies and employees. As of December 25, 2025, 36 provinces have published specific standards through governor decrees. Among the announced standards, West Java Province has the lowest provincial minimum wage at IDR 2,317,601, a significant gap compared to the highest in Jakarta Special Region (IDR 5,729,876). The formulation of the 2026 provincial minimum wage standards follows government wage regulations, which require
Indonesia Releases 2025-2034 National Electricity Supply Plan
The Ministry of Energy and Mineral Resources recently released the 2025-2034 National Electricity Supply Plan (RUPTL), hailed as the "greenest" electricity development plan in history. The plan is guided by the National Electricity Master Plan and the National Energy Policy, aligning with the Prabowo-Gibran administration's priority strategies of energy sovereignty and energy transition. The government proposes adding 69.5 GW of power generation capacity over the next decade, with 76% coming from new energy and energy storage systems. Specifically, new energy capacity of 42.6 GW (17.1 GW solar PV, 11.7 GW hydropower, 7.2 GW wind power, etc.), energy storage systems of 10.3 GW, and fossil fuel capacity of 16.6 GW. Indonesia's solar PV potential reaches 3,294 GW, and the government will focus on advancing floating solar PV projects.
Multiple Regions in Indonesia Announce 2026 Regional Minimum Wage Standards
The government has stipulated that provincial and local governments must determine the 2026 provincial and regional minimum wage standards by December 24, 2025, which also serves as the deadline for local governments to announce the Regional Minimum Wage (UMK). As of the deadline, only a few regions had published their standards, with Bekasi City predicted to have the highest in Indonesia at IDR 5,999,422. The Regional Minimum Wage is the minimum wage floor that companies must pay local workers, determined by the governor based on recommendations from regents, mayors, and the wage council, taking into account factors such as inflation, economic growth, and basic living needs.
Indonesia Builds Southeast Asia's Largest Plasma-Derived Fractionation Plant
Indonesia's long-standing 100% dependence on imported plasma derivatives is about to change. Through the Indonesia Investment Authority (INA), Indonesia is partnering with SK Plasma, a subsidiary of South Korea's SK Group, to build the country's first and Southeast Asia's largest plasma-derived medicinal product (PDMP) fractionation plant, which is expected to end the complete reliance on imports. INA's Vice President for ESG affairs stated that previously all of Indonesia's plasma needs were met through imports. The jointly built plant, located in the Karawang International Industrial Park, is scheduled to start operations in the fourth quarter of 2026, with an annual processing capacity of
Jakarta Government Requires Companies to Comply with Minimum Wage Standards
The Jakarta Special Region Government announced the 2026 Provincial Minimum Wage (UMP) at IDR 5,729,876 per month, an increase of 6.17% (IDR 333,115 increase) from IDR 5,396,900 in 2025. The Governor stated at a press conference that the UMP adjustment is based on government regulations, which stipulate that the alpha coefficient range for calculating UMP is assumed to be 0.5 to 0.9. After discussion at the Jakarta Wage Council meeting, the α value of 0.75 was finally adopted. He emphasized that all companies in Jakarta must comply with this minimum starting from 2026
Domestic and Foreign Investment Jointly Push Forward, Hundreds of Billions in Projects Land Densely in West Java
In 2026, dozens of industrial projects will begin construction in West Java, each with an investment of over IDR 100 billion. According to the 2025 Investment Activity Report (LKPM), 31 foreign-invested industries and 21 domestic industries will build new factories or start operations. On the foreign side, electric vehicle and supporting companies such as BYD, CATL, and VinFast lead in investment scale; Unilever, Shell Manufacturing, Epic Medical Solutions, and several pharmaceutical raw material and medical equipment manufacturers are expanding into the consumer goods and pharmaceutical sectors; Changxin Reksa Jaya, Victory Ching