Indonesia remains a leading destination for private equity in Southeast Asia, driven by its large population, digital transformation, and expanding middle class. Key sectors attracting investment include infrastructure, renewable energy, technology, healthcare, and education, supported by government reforms such as the Omnibus Law and the Positive Investment List.

Indonesia’s Free Nutritious Meal Program (MBG), launched under President Prabowo Subianto, has expanded rapidly through a highly centralized governance model led by the National Nutrition Agency (BGN).

At the Foreign Policy Community of Indonesia’s Middle Powers Strategic Dialogue, participants highlighted the growing fragmentation of the global order amid intensifying US-China competition.

Indonesia and the United States are discussing a potential overflight arrangement alongside a broader Major Defence Cooperation Partnership focused on military modernization and operational cooperation.

Indonesia’s Q2-2026 outlook indicates stable economic growth alongside emerging vulnerabilities.

Indonesia faces a more volatile global economy where geopolitical tensions disrupt trade, investment, and supply chains. .

Indonesia’s gig economy remains relatively small but continues to expand alongside digital platform development in sectors such as transport, logistics, and freelancing.

Indonesia’s trade relationship with China has deepened significantly, with China accounting for around a quarter of exports and a third of imports.

Indonesia has maintained stable domestic fuel prices despite global oil shocks, prioritising energy security and protecting household purchasing power through subsidies.