Capital: Jakarta
Largest ASEAN economy by GDP and population, leader in nickel, digital startups and consumer markets.
How Indonesia scores on the six Execution Economics pillars: institutions, capital, infrastructure, talent, technology and trust. Country scorecards are published progressively as research is completed.

Headline FDI growth in Indonesia is strong, but turning announced projects into productive assets depends on the unglamorous work of improving institutions and infrastructure.

Projections of a rice surplus in Indonesia highlight a fundamental aspect of modern economic statecraft in Southeast Asia: building domestic resilience to manage complex trade relationships, especially with China.

Indonesia's push to process palm oil domestically is more than an economic plan; it's a strategic test of how an ASEAN nation can manage its dependency on major trade partners like China.

A recent ASEAN meeting on disaster management in Bandung is more than a headline. It's a signal about Indonesia's institutional capacity, a factor that directly impacts its ability to convert announced foreign investment into tangible assets.

Indonesia's move to refine its mineral export ban is a clear example of an ASEAN state attempting to move up the value chain. This reflects a broader regional effort to manage economic relationships, particularly with China, by changing the terms of trade dependency.

Indonesia's plan to rebuild its commodity oversight body is a local solution to a regional problem: how to manage trade dependency while strengthening its position in global supply chains.

Indonesia's recent pause on mineral exports, tied to rare earth element regulations, shows the difficulty ASEAN nations face in managing deep trade ties with China while pursuing their own industrial and strategic goals.

Indonesia's recent clarification of its rare earth export policy highlights a core challenge for ASEAN: how to manage deep economic ties with China while building independent industrial capacity. The move is a test of its institutions, capital, and ability to execute a complex.

A major new data center investment in Jakarta highlights the critical importance of synchronized infrastructure development. While capital is flowing into Indonesia, success will depend on the execution of power, planning, and connectivity.

A new data center in Batam highlights the island's ambition to capture spillover demand from Singapore. Success will depend on its ability to replicate the coordinated infrastructure model that turned the city-state into a global hub.

Indonesia's ambition to lead in climate diplomacy and attract green capital requires a sustained focus on the institutional capacity to turn investment pledges into realised projects on the ground.

Indonesia adjusts its palm oil export pricing, a tactical move that highlights the structural reality of its deep trade ties with China and the ongoing effort to manage this complex dependency.

A major investment from Nvidia is on the table for Indonesia, but building a data center hub is about more than just capital. It requires the kind of deep institutional coordination that has defined Singapore's success.

As data center investments flow from Singapore to Batam, the island's ability to coordinate power, water, and connectivity will determine if it can become a true hyperscale hub.

The recent expansion of Jakarta's Priok port is more than a logistics upgrade; it is a tangible demonstration of institutional capacity and the economic value of reliable execution.

Indonesia's bid for Chinese investment in its horticulture sector is a clear example of a broader ASEAN trend: managing deep economic ties with China while trying to build national capacity.

Indonesia's push to export more processed palm oil products is a case study in how ASEAN nations are navigating their deep economic ties with China, seeking to add value at home and gain strategic flexibility.

High-level diplomatic outreach to ASEAN is growing, but converting this interest into tangible foreign direct investment requires mastering the complex, on-the-ground work of institutional reform and execution.

Jakarta's course correction on centralizing commodity exports is a pragmatic response to market feedback, illustrating the challenge for ASEAN governments in managing economic dependency while retaining strategic flexibility.

Keppel's early achievement of its $100 billion funds under management target highlights a deeper trend: private capital is flowing to where institutional reliability and project execution are prized over mere announcements.

New export checks on Indonesian metal products are more than a bureaucratic hurdle. They represent a strategic effort to map and control valuable rare earth elements, testing the country's ability to manage its deep trade dependency on China.

Jakarta's move to funnel strategic commodity exports through a state enterprise is a practical test of managing economic dependency on China, a core theme of regional trade policy.

Jakarta's plan to create a state-run commodity exchange is not just a trade policy; it is a test of institutional capacity and a strategic effort to rebalance its deep economic ties with China.

Indonesia's new controls on palm oil exports reflect a wider ASEAN trend: managing dependency on strategic commodities and key trade partners, a challenge detailed in "ASEAN Rising".

Indonesia's new one-stop export policy is a test case in how an ASEAN state can attempt to manage its deep economic dependency on China, a structural feature of the region's economy.

Indonesia's move to control its mineral exports is more than a logistical hurdle; it is a live test of the entire region's ability to manage its deep economic ties with China and move up the global value chain.

Indonesia is accelerating a new single-gateway export system. This institutional upgrade is more than an efficiency play; it is a strategic tool for managing trade dependency in an era of complex geopolitics.

Indonesia's new state-backed commodity trader, Danantara Sumberdaya Indonesia (DSI), is an attempt to manage trade dependency, but its success will depend on execution against entrenched market forces.

Indonesia's new commodity export agency, DSI, processed $10.5 billion in its first six weeks, signaling a significant institutional reform. This move can be understood as a strategic tool for Jakarta to manage its deep and complex trade relationship with China.

High-level statements are a staple of regional diplomacy, but the true measure of progress lies in institutional reliability and the tangible delivery of infrastructure and services.
Indonesia and the EU aim to sign the IEU-CEPA trade deal by Q4 2026, which is expected to open broader market access for Indonesian products and enhance competitiveness.
Bali has restricted foreign investors from accessing Indonesia's online licensing system for 18 business categories due to concerns over foreign-owned businesses.
Indosat launches Zankore, an AI infrastructure platform targeting 1 gigawatt of NVIDIA DSX AI factory capacity, developed with technology leaders to serve Asia-Pacific's AI demand, including Southeast Asia.
Taiwanese cloud and AI infrastructure provider Konst signs a data center lease with LG Sinar Mas in Jakarta, Indonesia, for its AI infrastructure capacity.
The Bases Conversion and Development Authority (BCDA) has outlined a 30-year development plan for the Pax Silica artificial intelligence (AI) hub in New Clark City, with full development expected to commence in 2028.
Indonesia's communications minister announced plans for an artificial intelligence factory, backed by Indosat and global technology partners, to bolster the country's role as a regional AI hub.
China's durian imports from Vietnam jumped by 43% to US$988 million in the first half of 2026, with strong growth expected to continue after a huge harvest.
Telkom Indonesia has finalized the spin-off of its $4.8 billion InfraCo, completing the transfer of network infrastructure assets to InfraNexia.
Indonesia plans to relocate families living beside railway tracks to newly built housing, starting in Jakarta and expanding nationwide, as part of a significant infrastructure and urban development initiative.
Singapore-based data center operator DayOne Data Centers plans a U.S. IPO to raise around US$5 billion, driven by demand for AI infrastructure.