Lower investments in pulp & paper
Four of six pulp and paper companies listed on the Indonesia Stock Exchange (IDX) cut significantly their investments in the first half of 2025. Three of them reported lower sales revenues in the period, while three others with flat growth.
Smelting investments
Amman Mineral (AMMN), second largest gold and copper producer in the country, cut its investments (cash-basis) from US$867 million in the first half of 2024 to US$711.8 million in the corresponding period this year. Other companies, however, spent significantly higher to make metal processing as, still, main driver of investments.
Cement industry & illusion of continuation
Continuation (of policies) was just a campaign tagline to attract ‘loyalists’ of then president Jokowi because nearly one year into office, the government of Prabowo Subianto has significantly reduced commitment for infrastructure development, including the new capital city (IKN) Nusantara.
Solar Industry Update
China’s solar energy companies, as reported on Reuters, cut nearly one-third of their workforces last year due to overcapacity, declining demand, and price wars. The world produces twice as many solar panels each year as it uses, with most of them manufactured in China, the world’s largest producer of solar panels.
Those continue to expand
Indonesian PMI for manufacturing has not been in expansion mode in the past few months, among others due to global economic uncertainty and policy changes at home. Some, however, opted to proceed with expansion plans, which can be seen in their cash spending for new investments in the first half of 2025.
Cable industry insulated from slowdown
Cable manufacturers listed on Indonesia Stock Exchange (IDX) generated a combined sales revenue of Rp9.45 trillion in the first half of 2025, an increase of 14% from the corresponding period last year, relatively insulated from economic slowdown.
Taikun’s petrochemical project
If Chandra Asri (TPIA), the country’s largest petrochemical company, is truly worth Rp837 trillion or US$51.3 billion, Indonesia shouldn’t be difficult in boosting domestic processing of oil and gas into chemicals. Simply issuing new shares, 10% of the enlarged share capital, Chandra Asri should easily get US$5 billion to double its olefin center capacity.
Automotive industry under pressure
When Indonesia signed the Agreement on Reciprocal Trade with the United States in July 2025, the announcement was met with celebratory headlines. More than 99 percent of US products—including cars, auto parts, and electric vehicles—are now eligible for zero tariffs when entering the Indonesian market. But behind the rhetoric of “trade victories” lies a sobering question: what does this mean for Indonesia’s domestic automotive industry?
Can medical device industry survive a zero-tariff future?
The Agreement on Reciprocal Trade grants more than 99 percent of U.S. products—including pharmaceuticals and medical devices—zero-tariff access to the Indonesian market. The agreement goes further, removing many non-tariff barriers as well. Most significantly, Indonesia now recognizes FDA certifications and prior market authorizations for U.S.-made medical devices.
Hydrogen Peroxide Update
State-owned ammonia and fertilizer producer PT Pupuk Iskandar Muda (PIM), a subsidiary of Pupuk Indonesia (Holding), acquired PT Asean Aceh Fertilizer (AAF) in late 2018. Following the acquisition, PIM planned to revise AAF’s hydrogen peroxide (H2O2) plant that is left dormant for many years due to limited natural gas supply.