Those continue to invest
Indonesia suffered substantial correction in foreign direct investment (FDI) last year due to global economic uncertainties, series of regulatory changes, concerns on fiscal discipline and overall investment climate. So, even small investment from foreign investors is now highly appreciated.
A chip shortage that exposes digital fragility
When Polytron, member of Djarum Group, quietly postponed the launch of its next laptop lineup due to tight global chip supplies, the decision barely registered beyond the technology page. Yet the delay says far more about Indonesia’s digital vulnerability than about one company’s production schedule. It is a warning sign that the country’s information technology (IT) ambitions remain hostage to global semiconductor dynamics over which it has little control.
Haji Isam’s battery precursor
PT Anugerah Barokah Energi Baru (ABEB), a company owned by Haji Isam’s Jhonlin Group commenced operation of its battery precursor plant at Setangga Special Economic Zone (SEZ) in Tanah Bumbu Regency, South Kalimantan province last week. The plant is Jhonlin’s collaboration with China’s CNGR Advanced Material Co Ltd.
Astra & the growing EV market
Astra International (ASII) remains the largest automotive player in Indonesia, but electric vehicles (EVs) gained grounds with nearly 13% market share last year. Will 2026 be different for Astra?
Bailing out textile industry
President Prabowo Subianto has instructed his cabinet to protect and rebuild Indonesia’s textile industry with US$6 billion (approximately Rp101 trillion) fund and establishing a new state company handling textile business.
Prabowo’s national car & KG Mobility
Sigit Puji Santosa, chief technology officer (CTO) of sovereign wealth fund Danantara, who is also CEO of state defence contractor PT Pindad, revealed the company’s plan to develop an industrial estate in Subang, West Java province to kick start production of the so-called ‘national car’ in two years time.
2026 Outlook (9): Automotive industry
It is almost certain that domestic car sales in 2025 failed to cross 800,000 units, way below 2024 (865,723 units). The government refused to admit lower purchasing power behind the falling sales, blaming financing issues instead.
A brighter outlook for Indonesian alumina
Aluminium was among the best performing metals in 2025, gaining 18.5% from 2024. While China, the world’s top aluminium producer, has been trying to slow down expansion, their manufacturers have grown more smelter grade alumina (SGA) capacities in Indonesia.
Textile industry’s double trouble in 2026
2025 was a bad year for Indonesian textile industry with the closure of Sritex Group. Tens of thousands workers were kicked out from the industry due to falling revenues and squeezed margins. The new year might be worse with potential implementation of reciprocal tariff of 19% by US government.
Polytama’s expansion: Self-sufficiency vs profitability
Persistent oversupply, particularly in China, and sotened demand led to nearly 16% fall of polypropylene (PP) resin price last year. Yet, PT Polytama Propindo (PLTM), the second largest manufacturer of polypropylene resin (PP resin) in Indonesia behind Chandra Asri, decided to grow its capacity significantly in the coming years.