Weak Rupiah becomes a technology problem
Rupiah has crossed a psychological threshold that few policymakers wanted to see. Public discussion has largely focused on currency markets, foreign investors, and monetary policy. Yet the more important question may be what a weak rupiah means for technological future.
Nickel Journal
Nickel ended substantially lower at US$18,575 per ton last Friday (Jun 5) despite reports about suspension of production at PT Weda Bay Nickel (WBN), the largest nickel ore miner in Indonesia, since late May. Softer near-term demand in China and growing nickel supply from the Philippines prevented further rally in the commodity.
Under-invoicing and transfer pricing investigation (1): Palm oil
Directorate general of tax at ministry of finance is currently investigating 32 palm oil companies suspected of their involvement in under-invoicing and transfer pricing practices. Interestingly, some palm oil companies have since last year reduced significantly their sales to offshore affiliated trading companies.
SCG Chemicals’ divestment of Chandra Asri
Shares of Chandra Asri Pacific (TPIA), the largest petrochemical company in Indonesia venturing into oil refinery business in Singapore, ended substantially lower by 5.1% to Rp1,305 on Friday (Jun 5) due to broad market sentiment and divestment of 11.82 billion shares by SCG Chemicals in the period of June 4-5.
Fiscal sustainability & PLN’s financials
State electricity utility PT Perusahaan Listrik Negara (PLN) has just released full year 2025 financial statement, where it posted net profit of Rp7.01 trillion, collapsed 67% from 2024 despite substantial increase in electricity subsidy and cost compensation payment from the State Budget.
Market corrections & the scapegoats
Composite index of IDX (IHSG/JCI) crashed 4.2% Friday (Jun 5), while rupiah weakened further to Rp18,130 per US dollar in some banks. Pretty much as predicted, government’s supporters blamed foreign investors/powers behind the corrections.
Rewriting the rules, but keeping the same mentality?
Government’s PR agencies/influencers/economists boasted the establishment of Danantara’s DSI to control export of coal, palm oil and ferro alloys as an act of rewriting the rules. How many times Prabowo writing new rules but leading to the same old results?
Mineral Exchange?
The government’s plan to establish a National Mineral Exchange is being presented as a bold step toward economic sovereignty. The argument is simple: Indonesia is one of the world’s largest producers of nickel and other strategic minerals, yet prices are often discovered and traded through foreign exchanges in Singapore or elsewhere. Why should a resource-rich country remain a price taker?
Patriot Bond II, Merah Putih Bond
We first published an article about Patriot Bonds II in early December 2025 quoting some conglomerates approached by the government/Danantara. Given tight State budget, Danantara will eventually issue new series to indirectly finance ‘public/government programs’.
Major Groups to Watch
Given global economic uncertainties and series of controversial policies issued by Prabowo administration, most major business groups in the country might opt to wait-and-see, avoiding making major investment decisions. Some, however, continue to expand.