5 September 2025 (closed)
Jakarta Composite Index (7,867.35) -18.51 -0.23%
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The Today's Headlines section of Indonesia Investments is a regularly updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
Based on the latest data from the Indonesia Investment Coordinating Board (BKPM), total investment realization in Indonesia fell 4.3 percent year-on-year (y/y) in the second quarter of 2020 (these data do not include investment in the banking and oil and gas sectors). The decline is attributed to the COVID-19 crisis that has paralyzed the global and domestic economies.
While Indonesia’s manufacturing activity has remained contracting in July 2020 as a result of the COVID-19 crisis that seriously disrupts consumption, production and trade flows, the positive news is that the rate of contraction eased significantly.
The novel coronavirus (COVID-19) pandemic brings unusual times for any country, especially in terms of the economic and social environments. In the case of Indonesia it has triggered historically low headline inflation, namely 1.54 percent year-on-year (y/y) after July 2020 brought deflation of -0.10 percent month-on-month (m/m).
The risky decision of Indonesia’s central government and regional governments to (gradually) ease the various self-imposed social and business restrictions (that had been imposed in April 2020) has caused changes in economic activity in Indonesia, particularly in consumer behavior, starting from June 2020.
