Indonesia’s 2025 GDP Growth Seen at Targeted 5.2%, Finance Minister Says
Overall GDP growth in Indonesia is expected to have met the 5.2% target for 2025 despite widespread destruction caused by floods late last year, Reuters reported via CNA, citing Finance Minister Purbaya Yudhi Sadewa.
The 2026 growth target of 5.4% was also maintained, the minister said at a gathering of Indonesia’s financial stability board.
Danantara to Manage Land Seized from 28 Firms Linked to Sumatra Floods
Sovereign wealth fund Danantara Indonesia will take over land seized from 28 firms linked to floods and landslides in Sumatra, Reuters reported, citing a spokesperson for the country’s forestry task force.
President Prabowo Subianto revoked the firms’ business permits last week for alleged environmental breaches that worsened the impact of deadly floods in Sumatra late last year.
Osaka Steel to Shutter Indonesia Joint Venture with Krakatau
Osaka Steel will cease operations at Indonesian subsidiary Krakatau Osaka Steel due to a sharp decline in demand caused by the Indonesian government significantly cutting infrastructure spending, Nikkei reported, citing the Japanese company’s announcement.
The decision was made after attempts to create steady profits failed and the company was unable to sell the business. The timing of the withdrawal and other details will be decided through discussions with its joint venture partner, state-owned Krakatau Steel, according to Nikkei.
Chandra Asri Gets $250 Million Loan to Fund Equity in Esso Deal
Indonesian energy and chemicals firm Chandra Asri Pacific has secured a USD 250 million loan to back its purchase of Esso-branded service stations in Singapore from Exxon Mobil, Bloomberg reported, citing people familiar with the matter.
Bangkok Bank and sovereign wealth fund Indonesia Investment Authority provided the eight-year facility, which will partly fund the equity portion of the acquisition.
The financing underscores how private credit funds and traditional lenders increasingly operate side-by-side in mergers and acquisitions in Asia Pacific – a region flushed with bank liquidity.