Citi Says Indonesia May Breach 3% Legal Cap on Deficit This Year
Indonesia’s fiscal deficit is likely to widen well beyond its legal limit this year as the government ramps up spending on its nationwide free meals program and the rebuilding of flood-hit provinces in Sumatra island, Bloomberg reported, citing Citigroup. Citi raised its budget deficit forecast to 3.5% of GDP in 2026, from an initial estimate of 2.7%.
Indonesia Plans to Sell First Asian Sovereign Dollar Bond of 2026
Indonesia plans to sell USD bonds, the first such offering by an Asian sovereign this year, giving further impetus to a record start to global debt issuance by borrowers in 2026, Bloomberg reported via BT.
Prabowo Pushes Textile Revamp, Chip Industry Drive
Indonesian President Prabowo Subianto, along with several members of the Cabinet, held a meeting to finalize the “national industry transformation” in the textile industry and the production of automotive industry chips, Tempo reported.
Indonesia President Inaugurates Balikpapan Refinery Upgrade Worth $7.4 Billion
Indonesia’s President Prabowo Subianto inaugurated the USD 7.4 billion upgrade of Pertamina’s Balikpapan refinery, which brought the facility’s refining capacity from 260,000 to 360,000 barrels per day, Reuters reported via CNA. This would be the largest capacity in the country.
Krakatau Steel Pledges IDR 13.94 Trillion of Assets to Danantara
Indonesian state-owned steel maker Krakatau Steel has pledged assets worth IDR 13.94 trillion (USD 825.2 million) to sovereign fund Danantara, CNBC Indonesia reported. This was part of the shareholder loan agreement signed between Danantara Asset Management and Krakatau on 19 December 2025.
Kimia Farma Gets IDR 846 Billion Shareholder Loan from Bio Farma
Indonesian state-owned drug maker Kimia Farma has received a IDR 846 billion (USD 50 million) shareholder loan from Bio Farma, CNBC Indonesia reported. Bio Farma is the state-owned pharmaceutical holding company.
📒 Quick Take: Indonesia’s SOE Supremo (30 September 2025)
💼 Brief Take: The SOE Circles (17 October 2025)