MACROECONOMY
Bank Indonesia (BI) Conducted Aggressive Multi-Market Intervention to Support Rupiah
BI stated it has carried out “all out” interventions to stabilize rupiah through seven major measures, including aggressive FX intervention in domestic spot, DNDF, and offshore NDF markets across Hong Kong, Singapore, London, and New York. BI also tightened USD purchase limits without underlying transactions, continued SBN purchases totaling IDR 123.1 tn YTD, issued SRBI instruments to attract capital inflows, and coordinated with govt. and OJK to maintain banking liquidity and financial system stability, while FX reserves stood at USD 148.2 bn, which BI considers more than sufficient for stabilization efforts. (Bloomberg Technoz)

OJK and Govt. Began Initial Discussion on Indonesia Financial Center Development
OJK confirmed it has started coordinating with Indonesia govt. regarding preparation for a financial special economic zone (financial center), with Bali reportedly becoming one of the main proposed locations. The initiative aims to attract global investment inflows, strengthen Indonesia’s financial ecosystem, and expand financial innovation products such as bullion services and gold ETFs, while benchmarking global financial hubs including Dubai, Abu Dhabi, and Singapore. (Bloomberg Technoz)

Indonesia Govt. Granted Tax Exemption for SOE M&A Transactions Until 2029
Indonesia govt. officially granted tax exemption for SOE merger and acquisition transactions until 2029 to accelerate restructuring and efficiency programs across state-owned enterprises. The incentive applies specifically to corporate restructuring activities such as mergers, acquisitions, and asset consolidation, while normal corporate income tax obligations remain unchanged. Govt. expects the policy to support faster streamlining of SOEs and reduce restructuring costs during the consolidation process. (Bloomberg Technoz)

Indonesia Govt. to Begin Digital Social Aid Rollout Across 42 Regions
Indonesia govt. will officially begin kick-off process for digital social aid (bansos) implementation across 42 cities/regencies, with data collection targeted to finish by Jul-26 before phased distribution begins using updated verification system. Govt. also aims to reduce exclusion and inclusion errors in aid distribution through integrated digital data system, while Luhut claimed broader GovTech and AI-based digitalization initiatives could potentially generate budget savings of up to IDR 350–400 tn. (Bloomberg Technoz)

Financial System Stability Committee (KSSK) Maintained Indonesia’s Fiscal, Monetary, and Financial System Stability in 1Q26
Indonesia’s KSSK stated fiscal, monetary, and financial system conditions remained stable during 1Q26 despite rising global volatility from Middle East tensions, with Indonesia’s economy growing 5.61% YoY in 1Q26 while govt. targets growth approaching 6% by end-2026. BI strengthened rupiah stabilization measures through aggressive FX intervention and tighter monetary operations, while banking sector fundamentals remained solid with CAR at 25.09%, loan growth at 9.49% YoY, and NPL gross maintained at 2.1%. Meanwhile, capital market fundraising reached IDR 59.35 tn YTD, supported mainly by debt and sukuk issuance. (CNBC Indonesia)

INDUSTRY

Indonesia Targets to End Diesel Imports Starting 2026
Indonesia govt. targets to fully stop diesel (solar) imports starting in 2026, supported by higher domestic refinery capacity and implementation of B50 biodiesel program, with potential FX savings estimated at IDR 65 tn/year. The policy will be supported by projects such as RDMP Balikpapan refinery, while Pertamina has started replacing imported diesel (solar) supply for domestic demand as part of efforts to strengthen energy security and reduce reliance on imported fuel. (Kontan)

OJK to Release Revised Bank Business Plan Regulation in 3Q26
OJK plans to finalize revision of POJK regarding Bank Business Plan (RBB) in 3Q26, aimed at encouraging more structured and sustainable banking business planning while supporting financing toward govt. priority programs such as housing, UMKM, food security, and downstream industries. OJK emphasized the regulation will not mandate banks to channel loans into specific programs, with lending decisions remaining subject to each bank’s business judgement, risk management, and governance considerations. (CNBC Indonesia)

Three Telcos Participated in 700 MHz and 26 GHz Spectrum Auction
Indonesia govt. confirmed three telecom operators participated in the auction process for 700 MHz and 26 GHz frequency spectrum, which is expected to support expansion of 5G ecosystem and strengthen national digital infrastructure development. The spectrum allocation is considered strategic for improving network capacity, connectivity quality, and future digital service penetration across Indonesia. (Investor Daily)

BCA Vista Research

Indonesia Govt. Granted Tax Exemption for SOE M&A Transactions Until 2029

Indonesia Government Prepared IDR 600,000/Month Housing Subsidy Under 3 Million Homes Program

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