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Spain sets out $5.8 billion support package to counter Iran war’s impact

20 March 2026  Spain’s government on Friday proposed measures worth 5 billion euros ($5.8 billion) to counter the economic impact of the Middle East conflict on local energy prices. The measures, which require approval from parliament, include the reduction of value-added tax on electricity bills to 10%, cutting fuel prices by ​up to 30 cents per litre and granting a fuel subsidy of 20 cents per litre ​for the farming and transport sectors, which are some of the most exposed to the sharp spike in ⁠energy prices caused by the war. Prime Minister Pedro Sanchez, who is among the most vocal critics of the U.S.-Israeli attacks ​on Iran, said the measures would be in place for as long as necessary but that “no plan can ​neutralise the misery of this illegal war”. “These are 5 billion euros that we could be allocating to scholarships, healthcare, and long-term care. I’m very, very angry with the situation,” Sanchez said. In a sign of growing divisions within the leftist ruling coalition, hard-left coalition ​partner Sumar had threatened to vote against the measures if they did not also address housing prices. The ​cabinet instead separated measures to support renters and vulnerable households into a second package to be put to the lower house next ‌week. That ⁠package, however, is less likely to clear parliament due to opposition from right-wing parties, Sanchez said. TRANSPORT SECTOR SEES LIMITED IMPACT Spanish union CCOO urged both packages to be approved, while transport association Fenadismer said the fuel-price cuts would have a limited impact given the magnitude of the energy crisis. The cuts on fuel would likely ​mostly benefit larger companies able ​to increase their profit ⁠margins, said economist Manuel Hidalgo, a senior fellow at the Esade Centre, adding the reduction in the electricity tax was more likely to help poorer households. ​If approved, the measures will be some of the first to be enacted ​by governments to ⁠cushion the impact of the Middle East conflict for households, which has prompted a spike in oil and gas prices that risks driving up inflation and depressing economic activity in countries reliant on imported fuel. Italy has temporarily cut ⁠excise duties ​on fuel and Germany is mulling a windfall tax on ​oil firms to finance subsidies for commuters, though its economy minister warned against knee-jerk reactions to higher pricing. This article was made by David Lantona, Reuters https://www.reuters.com/business/energy/spain-reduce-vat-fuel-10-over-iran-war-ser-reports-2026-03-20

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Austria Jajaki Investasi di IKN, Mau Garap Proyek Kota Hutan Modern

6 Maret 2026 Bisnis.com, JAKARTA — Austria menjajaki potensi kerja sama untuk pembangunan infrastruktur hingga layanan kesehatan di Ibu Kota Negara (IKN) Nusantara. Penjajakan kerja sama ini dibahas dalam pertemuan Kepala Otorita IKN Basuki Hadimuljono dan perwakilan Kedutaan Besar Austria yang dihadiri oleh Chargé d’Affaires ad interim Austria, Michael Wislocki, bersama Commercial Counselor Austria, Sigmund Nemeti di Kantor Balai Kota Otorita IKN, pada Rabu (4/3/2026). Kepala OIKN Basuki Hadimuljono bersama delegasi Austria melakukan diskusi langsung mengenai berbagai potensi kerja sama yang dapat dikembangkan seiring dengan pembangunan Nusantara. Basuki menjelaskan bahwa pembangunan Nusantara membuka ruang kolaborasi secara luas dari berbagai mitra, mulai dari lokal, nasional, hingga internasional. “Pembangunan Nusantara tidak hanya menghadirkan pusat pemerintahan baru, tetapi juga membangun ekosistem kota yang lengkap, mulai dari infrastruktur, layanan kesehatan, pendidikan, hingga pengembangan ekonomi berkelanjutan. Oleh karena itu, kami terbuka terhadap berbagai kolaborasi internasional yang dapat memperkaya pengembangan Nusantara,” kata Basuki dalam keterangan tertulis dikutip Jumat, (6/3/2026). Senada dengan hal tersebut, Michael Wislocki, menyampaikan bahwa kunjungan ini menjadi kesempatan bagi Austria untuk melihat langsung progres pembangunan Nusantara sekaligus memastikan berbagai potensi kerja sama yang dapat dikembangkan antara kedua negara. “Kedutaan Besar Austria terakhir kali kesini (Ibu Kota Nusantara) pada tahun 2023 untuk menjajaki berbagai peluang bisnis. Saat ini, kami juga mengikuti perkembangan terkait dengan IKN. Kami tertarik, terutama sebagai perwakilan kedutaan untuk ikut menciptakan kota hutan yang modern dan berkelanjutan di Indonesia,” ujar Michael. Artikel ini telah tayang di Bisnis.com dengan judul “Austria Jajaki Investasi di IKN, Mau Garap Proyek Kota Hutan Modern”, Klik selengkapnya di sini: https://ekonomi.bisnis.com/read/20260306/45/1958415/austria-jajaki-investasi-di-ikn-mau-garap-proyek-kota-hutan-modern.Penulis : Fitri Sartina Dewi – Bisnis.com

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Potensi Ekonomi Sisa MBG

Selama ini, sebagian pihak memandang makanan yang tidak habis sebagai ”sisa” atau akhir dari proses. Wajar saja jika sisa makanan bergizi gratis (MBG) dianggap sebagai pemborosan, karena dibuang setelah kebutuhan perut terpenuhi. Apalagi sisa makanan ini masif, paradoks awal akan menjadi dengungan: MBG pemborosan, berakhir di tempat sampah karena tidak dihabiskan. Padahal, di dalamnya terbuka peluang ekonomi baru dengan multiplier effect yang luar biasa. Bagi keluarga kecil yang tinggal di desa, sisa makanan bukan sesuatu yang sia-sia. Sisa makanan merupakan pakan ternak alternatif berbiaya rendah, bisa juga jadi produk pangan tradisional seperti rengginang dan kerupuk gendar, atau hal lain yang bisa diproduksi sederhana. Di sinilah konsep ekonomi keluarga pertanian yang berlaku sirkular, dan dapat direplikasi dengan lebih massal. Sisa makanan dari dapur SPPG dapat dikumpulkan secara sistematis dan dikelola oleh BUMDes atau koperasi desa sebagai bahan baku industri: pakan ternak, budidaya maggot, hingga pupuk mikroorganisme lokal. Dengan pendekatan ini, subsidi negara tidak berhenti pada konsumsi semata, tetapi berputar menjadi aktivitas ekonomi yang menciptakan nilai tambah bagi warga desa. Skala Bahan Baku dari Masifnya Food Loss and Waste (FLW) Pada kondisi normal, sebagian besar makanan tidak sepenuhnya habis dikonsumsi. Pemerintah serius mencegah Food Loss and Waste (FLW) atau kita kenal dengan istilah Susut dan Sisa Pangan (SSP), sesuai RPJMN 2025-2029 terdapat target persentase penyelamatan pangan sebesar 3-5 persen per tahun. Indonesia memadukan pencapaian dua komitmen global, yakni Sustainable Development Goals (SDGs) ke-12 poin 3, yaitu mengurangi 50 persen food waste per kapita di tingkat retail dan konsumen, serta menghubungkan juga dengan target SDGs ke-2, menuju Zero Hunger di tahun 2030. Hasil kajian Bappenas tahun 2021, potensi susut dan sisa makanan di Indonesia mencapai 23–48 juta ton per tahun, setara 115–184 kg per orang per tahun. Jika dimanfaatkan sebagai edible food waste, jumlah ini cukup memberi makan 61–125 juta orang, atau sekitar 29–47 persen populasi Indonesia. Sementara, jika dihitung dari MBG saat ini, setiap siswa berpotensi menyisakan 25 hingga 50 gram makanan per hari. Jika dikonversi ke tingkat butiran, satu gram beras mengandung sekitar 50 butir nasi. Maka ketika seorang anak menyisakan 50 gram nasi, ia sebenarnya membuang sekitar 2.500 butir nasi dalam satu kali makan. Angka ini mungkin terlihat kecil pada tingkat individu, tetapi berubah dramatis ketika dihitung dalam skala kolektif 3.000 siswa per hari. Bayangkan jika setiap siswa menyisakan 50 gram makanan, maka setiap hari akan terkumpul sekitar 150 kilogram sisa makanan. Dalam satu tahun operasional sekolah sekitar 200 hari, jumlahnya mencapai 30 ton. Tiga puluh ton bukan lagi sekadar sisa makan siang, ia adalah volume bahan baku industri kecil yang stabil dan dapat diprediksi. Jika sisa makanan ini dibuang ke tempat pembuangan akhir, masalah baru muncul. Limbah makanan merupakan salah satu sumber utama emisi gas metana, gas rumah kaca yang jauh lebih kuat dibanding karbon dioksida. Satu piring nasi yang terbuang dapat menghasilkan emisi sekitar 150 gram gas berbahaya selama proses pembusukan. Artinya, 30 ton sisa makanan dari satu SPPG, jika tidak dimanfaatkan hanya kerugian ekonomi, tetapi juga potensi beban lingkungan yang serius. Padahal, dalam setahun Badan Gizi Nasional (BGN) telah mengoperasikan sebanyak 19.800 Satuan Pelayanan Pemenuhan Gizi (SPPG) atau dapur Makan Bergizi Gratis (MBG). Jangan sampai target RPJMN 2025-2029, justru gagal karena ketidak siapan pemanfaatan sisa makanan dari MBG sendiri. Peluang Ekonomi Sebaliknya, jika sisa nasi ini dikelola sebagai bahan baku ekonomi, potensi yang muncul sangat besar. Salah satu peluang paling nyata adalah produksi pakan ternak fermentasi. Dengan bantuan mikroorganisme seperti Lactobacillus atau EM4, sisa nasi dapat difermentasi menjadi pakan berkualitas dengan kadar protein yang meningkat hingga sekitar 20 persen. Bagi peternak ayam potong atau peternak ikan desa, pakan merupakan komponen biaya terbesar. Adanya pakan alternatif berbasis sisa pangan, biaya produksi dapat ditekan hingga 50 persen lebih murah dibanding pakan komersial. Selain itu, sisa makanan juga dapat dimanfaatkan dalam budidaya maggot Black Soldier Fly. Larva ini terkenal sebagai sumber protein tinggi untuk pakan ikan dan unggas. Dalam sistem ini, sisa makanan dari dapur gizi tidak dibuang, melainkan menjadi pakan maggot. Maggot kemudian menjadi pakan ternak, sementara kotorannya menjadi pupuk organik. Siklus ini menciptakan ekosistem zero waste, di mana hampir tidak ada bahan yang benar-benar terbuang. Potensi lainnya adalah pengembangan pupuk cair berbasis Mikroorganisme Lokal (MOL). Sisa makanan difermentasi menjadi larutan mikroba untuk meningkatkan kesuburan tanah. Pupuk ini dapat digunakan oleh petani desa yang memasok sayuran ke dapur SPPG. Dengan demikian, terbentuk rantai ekonomi yang saling terhubung: petani memasok bahan pangan ke dapur gizi, dapur gizi menghasilkan sisa bahan baku, dan bahan baku tersebut kembali meningkatkan produktivitas pertanian desa. Jika dikelola secara sistematis, unit-unit usaha ini bukan hanya menguntungkan warga, tetapi mengurangi biaya operasional BGN dalam membuang sisa makanan, karena sudah ada yang menampung. Efisiensi anggaran tersebut dapat digunakan kembali untuk mendukung operasional dapur, meningkatkan kualitas layanan gizi, atau menambah kesejahteraan petugas. Bahkan, jika sisa makanan yang dikelola dengan baik, berpotensi menjadi produk unggulan desa. Data Podes 2025 memberikan gambaran, ada 25.679 desa/kelurahan yang memiliki produk barang unggulan, dan lebih dari 50 desa di antaranya memiliki menggunakan sampah sebagai bahan baku. Akhirnya, tidak ada sisa makanan merupakan bahan organik yang tidak akan benar-benar sia-sia. Ketika sisa makanan dipandang sebagai bahan baku, maka dapur MBG tidak hanya memberi berhenti memberikan layanan makanan, ia juga berperan menghidupi ekonomi desa dan menjaga lingkungan secara bersamaan. Sumber: https://money.kompas.com/read/2026/03/12/065500326/potensi-ekonomi-sisa-mbg. Editor : Sandro Gatra

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Standards and sustainability will make or break Indonesia–EU trade deal

19 January 2026 The signing of the Indonesia–EU Comprehensive Economic Partnership Agreement (IEU–CEPA) in September 2025 marked a significant achievement for both parties. Beyond trade, the agreement reaffirms Indonesia’s bebas aktif (‘free and active’) foreign policy and strengthens engagement with advanced markets even as Jakarta deepens ties with groupings such as BRICS. The agreement offers tariff reductions or eliminations across nearly all tariff lines. But access to the EU market is no longer dictated by tariffs alone. As tariff barriers recede, rules of origin, sustainability, standards, traceability and due diligence will determine Indonesia’s gains from the agreement. With the IEU–CEPA set to enter into force in 2027, Indonesia faces the decisive question of whether its industries can adapt quickly enough to a world where standards and sustainability are a primary source of competitiveness. The answer will shape Indonesia’s ability to participate in a standards-focused global economy. Sustainability issues are prominent in Indonesia’s trade with the European Union. Palm oil and its derivatives — one of Indonesia’s main exports to the European Union — illustrate the intersection of tariffs and regulation. Palm oil tariffs will be eliminated when the agreement enters into force, but palm oil exports will still face regulatory barriers that originate outside the agreement. The IEU–CEPA provides a basis for cooperation between both parties’ sustainability assurance schemes, such as the EU Deforestation Regulation (EUDR) and the Indonesian Sustainable Palm Oil scheme. One of the EUDR’s requirements is that land used to produce covered commodities has not been converted from forest to agricultural use after 31 December 2020 and that compliance is verified. The European Union classifies Indonesia as ‘standard risk’ rather than ‘low risk’. This classification means higher compliance costs, since exporters must undertake full due diligence, unlike those in ‘low risk’ countries, which benefit from simplified procedures. The IEU–CEPA provides a platform for further cooperation and a pathway for Indonesia to seek a lower risk classification. Joint cooperation to improve traceability systems and deforestation monitoring, alongside greater interoperability between Indonesian Sustainable Palm Oil and EUDR due-diligence requirements, could strengthen the case for a future reassessment of Indonesia’s risk classification. The core challenge is whether Indonesian industry has the capacity to meet these requirements. While larger producers, such as members of the Indonesian Palm Oil Association, say they are ready to meet them, 38 per cent of the palm oil area is still managed by smallholders. Cocoa, coffee and rubber are also predominantly managed by smallholders, with shares exceeding 90 per cent. These producers face similar challenges in complying with the EUDR, including traceability in remote areas and limited enforcement capacity. A similar challenge arises with the IEU–CEPA’s rules of origin, which determine whether tariff preferences translate into real market access and whether Indonesian exporters can access them in practice. Often viewed as mere technicalities, these provisions dictate the required depth of domestic value-added processes and serve as a critical dividing line in modern trade. They reflect not only compliance capacity but also industrial readiness. One of the IEU–CEPA’s origin rules for the textile and apparel sector requires that garments undergo key stages, such as weaving and making-up, within Indonesia or the European Union. In practical terms, a firm that imports yarn and turns it into fabric and clothing can qualify. But if an Indonesian firm imports fabric and manufactures apparel from it, it would not qualify for preferential tariff treatment under this rule. This example illustrates the broader challenge for Indonesia. It needs to map which industries already meet the origin thresholds and which do not. Where gaps exist, strategies to upgrade, partner or restructure supply chains will be key to leveraging the IEU–CEPA. Those choices will determine which sectors gain a foothold in the European Union and which are effectively shut out despite the promise of ‘98 per cent tariff elimination’. Both cases indicate that the IEU–CEPA’s benefits will not be automatic. They will depend on whether Indonesian industry can meet EU rules and standards — a question of industrial capability. The ability to strategise and meet those standards quickly will shape who wins and who loses under the IEU–CEPA. Vietnam, which has had a free trade agreement with the European Union since 2020, has faced the stringent requirements of EU standards and rules of origin. Despite these challenges, the EU–Vietnam Free Trade Agreement (EVFTA) has strengthened bilateral trade. Between 2019 and 2024, EU–Vietnam trade increased from 45.6 billion euros (US$53.1 billion) to 67.1 billion euros (US$78.2 billion) — a 47 per cent increase. These figures may rise further as tariffs on Vietnamese exports are gradually phased out. More importantly, the EVFTA catalysed reforms to Vietnam’s policy and legal systems to meet EU standards — an approach that Indonesia can replicate. The EVFTA figures suggest that if Indonesia adapts quickly, the diplomatic success of the IEU–CEPA’s signing can translate into real economic benefits. The IEU–CEPA represents more than a diplomatic milestone. It is a roadmap for Indonesia’s maturation in standards-based trade and industry. The IEU–CEPA will not automatically open the EU market to Indonesia, but it will test whether Indonesia can become the kind of economy that Europe is willing to admit. This article was made by Ichfan Ramadhan, EastAsiaForum The views expressed in this article are the author’s own and do not represent the views of their employer. https://doi.org/10.59425/eabc.1768860000

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VW in talks with Israel’s Iron Dome maker to shift from cars to missile defence

24 March 2026 Plan with Rafael Advanced Defence Systems focuses on using carmaker’s Osnabrück plant to produce parts for air defence Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.comT&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found on the Help FAQ on gift articles.https://www.ft.com/content/1e41e6db-792f-4f60-b567-adb6458fb072?syn-25a6b1a6=1 Volkswagen is in talks with Israel’s Rafael Advanced Defence Systems over a deal that would switch production at one of the German group’s factories from cars to missile defence. The two companies plan to convert the embattled Osnabrück plant to make components for the Israeli state-owned group’s Iron Dome air defence system, according to people familiar with the plan. The tie-up would be the highest-profile example yet of the German car industry, where profits have plunged amid rising Chinese competition and a stuttering transition to electric vehicles, seeking partnerships with the booming defence sector. The two companies hope to save all 2,300 jobs at the plant in the western German state of Lower Saxony, which has been under threat of closure, and hope to sell the systems to European governments. “The aim is to save everybody, maybe even to grow,” said one of the people familiar with the plans. “The potential is so high. But it’s also an individual decision for the workers if they want to be part of the idea.” The German government is actively supporting the proposal, according to a second person. VW already makes military trucks in a joint venture between subsidiary MAN and German arms group Rheinmetall. But the partnership with Rafael would mark a major return to weaponry for VW, which produced military vehicles and the V1 flying bomb for Hitler’s Wehrmacht during the second world war.  Under the plans, the Osnabrück factory would make various Iron Dome parts, including the heavy-duty trucks that carry the system’s missiles as well as launchers and electricity generators. But it would not produce the projectiles themselves. The concept would require minimal new investment, according to the first person. “There is some money needed to transition to new production but this is pretty easy.” The idea, he added, was that “proven [defence] tech comes together with German manufacturing” to produce the system.  Production could be up-and-running within 12-18 months, the person said, as long as workers agreed to switch to weapons production. Rafael plans to set up a separate production facility in Germany for the system’s missiles, which must be handled on a specialist site. The company hopes to sell the Iron Dome system to governments across Europe including Germany, as countries strengthen their air defences as part of a large-scale rearmament in response to Russia’s full-scale invasion of Ukraine. Germany last year took delivery of the first of three batteries of the Israeli Arrow 3 air defence system, made by another Israeli company, Israel Aerospace Industries.  Rafael chose Germany for European production because of its status as one of the strongest supporters of Israel in Europe, according to a third person familiar with the plan. Another of the people said the company had heeded pleas from senior German officials to harness excess capacity in the country’s struggling industrial sector. The move comes as the EU’s largest nation plans to spend more than €500bn on defence by the end of the decade, with officials saying that air defence is one of their top spending priorities. Israel credits its complex web of air defences, which involves several different systems, with intercepting more than 90 per cent of missiles fired at the country by its adversaries. But some experts have questioned the suitability of the Iron Dome, which has a range of 70km and has primarily been used to stop rockets from Gaza hitting Israel, for defending European nations from longer-range threats. Rafael already produces Spike missiles for European countries in Germany through a joint venture with Rheinmetall and Diehl Defence. It also produces a system called Trophy that protects tanks and armoured vehicles.  VW has been seeking a solution for the Osnabrück plant, where production of vehicles is set to end next year under a cost-cutting plan agreed in 2024. About 35,000 workers at VW plants are set to leave the company by 2030, although the redundancies are all on a voluntary basis.  A VW spokesperson said the company was in discussions with “various market players” but that there were “currently no concrete decisions or conclusions regarding the future direction” of the Osnabrück site. This article was made by current progress 1% Laura Pitel and Anne-Sylvaine Chassany in Berlin and Sebastien Ash in Hamburg https://www.ft.com/content/1e41e6db-792f-4f60-b567-adb6458fb072?shareType=nongift

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EU and Indonesia continue work on recognition of EU as a single entity for Halal certification purposes

On 13 February, an Indonesian delegation concluded a study trip to the EU focused on facilitating the recognition of the EU as a single entity for Halal certification purposes.  26 February 2026 The EU and Indonesia jointly announced they would continue their cooperation on the matter. The visit paves the way for enhanced recognition by Indonesia of certificates of compliance issued by EU-based bodies for activities spanning several Member States. Such recognition is expected to facilitate the export to Indonesia of products whose value chains extend across multiple EU countries. During its five-day study trip, the Indonesian delegation met with representatives of the European Commission, EU Member States, and EU-based trade associations and certifiers. The two days in Brussels provided the delegates with insights into EU decision-making as well as the single market principles which allow the EU to function as a single, integrated economic entity. The Brussels visit also showcased the inspection systems and traceability standards applicable in the EU, notably in the agri-food and cosmetics sectors.  The Indonesian delegation also travelled to Germany and Denmark, where they exchanged views with national authorities, certification bodies and industry representatives.  Background The EU and Indonesia are close trading partners, with Indonesia being the EU’s 5th largest trading partner in the ASEAN region. In 2025, the EU and Indonesia concluded negotiations on a Comprehensive Economic Partnership Agreement, which will unlock the full trade and investment potential between the two economies.  This article was made by Directorate-General for Trade and Economic Security, European Comission https://policy.trade.ec.europa.eu/news/eu-and-indonesia-continue-work-recognition-eu-single-entity-halal-certification-purposes-2026-02-26_en

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Ramadan 2026: More selective, not slower

24 March 2026 Ramadan has long stood as one of Indonesia’s most critical economic periods, when increased mobility typically translates into stronger consumption. For years, the linkage appeared straightforward: as people moved more, they spent more. Ramadan 2026, however, tells a more nuanced story. Spending remains robust but the mechanisms behind it are beginning to evolve. At the aggregate level, the overall picture remains constructive. Spending during Ramadan expanded at a faster pace this year than last year. The compound growth rate from the start of Ramadan to the third week reached around 0.61 percent, compared to 0.50 percent in 2025, implying a roughly 22 percent year-on-year (yoy) acceleration in the pace of spending growth. Yet this stronger growth came with a notable shift in timing. Spending in 2026 prior to Ramadan fell to around 0.7 percent below the baseline, significantly deeper than the roughly 0.1 percent decline observed in 2025. In effect, the initial slowdown was nearly seven times more pronounced. However, once Ramadan commenced, spending rebounded quickly, rising to around 0.9-1.8 percent above baseline in the following weeks. This pattern suggests that households are becoming more intentional, delaying spending earlier and then accelerating more decisively during peak periods. A second shift is in the composition of growth across income groups. While all segments experienced improvement, the upper-middle income group exhibited the strongest acceleration. Its growth from the baseline to the third week increased by around 0.14 percentage points (pp) relative to 2025, compared to 0.10 pp for the middle income segment and 0.09 pp for the lower income segment. More notably, the upper-middle segment’s yoy growth in 2026 was approximately 2 to 2.5 times higher than in 2025. This indicates that the upper-middle segment is not only leading consumption, it is amplifying its role as the primary growth driver. The most revealing change, however, appears in mobility. Last year, mobility built steadily throughout Ramadan, peaking in the later weeks and reinforcing consumption momentum. In 2026, mobility remained positive but its trajectory was more subdued. Growth in mobility-related spending ranged between 5.2 and 6.1 percent yoy and even higher, reaching up to 9 percent in certain segments, compared to 5.8-6.5 percent in 2025. This indicates that while mobility did not weaken outright, its expansion was flatter and less pronounced this year than the previous year. Timing patterns further reinforce this shift. In 2025, mobility gains continued to strengthen toward the end of Ramadan. By contrast, mobility activity in 2026 rose earlier but then plateaued. As a result, overall intensity across the period was lower, even though activity remained present. Changes in spending composition make this transformation even clearer. In Ramadan 2026, growth was primarily driven by categories such as groceries, electronics, fashion and transportation, suggesting a concentration in essential and preplanned expenditures. Meanwhile, categories typically associated with discretionary and mobility-driven consumption, such as restaurants, hotels, airlines, entertainment and fuel, recorded weaker performance relative to the overall trend. This marked a departure from previous patterns. In 2025, sectors like airlines and hotels were among the main beneficiaries of Ramadan activity. In 2026, however, their contribution to incremental growth diminished noticeably. In relative terms, this indicates a shift in spending composition from leisure-oriented consumption toward necessity-driven spending. Although total expenditure continued to rise, a greater portion of that increase was directed toward essential categories. This reflects a more selective consumer mindset. Households are not cutting back outright; rather, they are reprioritizing. Essential spending remains protected, while discretionary spending has become more conditional. At the macro level, these behavioral adjustments are increasingly shaping broader economic patterns. Growth remains evident, but it is becoming more moderate and differentiated. Regional data show that provinces across Java and Sulawesi continue to post strong and positive spending momentum, suggesting that demand remains active in key economic hubs. At the same time, the overall pattern of consumption appears more mature, less evenly distributed, more dependent on timing and increasingly driven by segments with stronger purchasing power. This evolution carries important implications for policymakers. As spending becomes more concentrated in specific periods, timing emerges as a critical lever. Aligning fiscal interventions with peak consumption windows could enhance their effectiveness. Equally, the widening divergence across income groups highlights the importance of sustaining the middle class. While higher income households currently drive momentum, long-term resilience depends on broader participation in consumption. Maintaining stability in essential sectors is also crucial as spending becomes increasingly concentrated in these areas, requiring reliable supply and stable pricing. Finally, the changing role of mobility suggests that policy frameworks may need to adapt. Mobility alone is no longer sufficient to drive consumption. Greater impact can be achieved by linking mobility more closely with economic ecosystems, ensuring that movement translates more effectively into spending activity. Ramadan 2026 ultimately delivers a clear message. Indonesian consumers are not stepping back; they are becoming more strategic. Spending is being delayed, prioritized and reallocated. And within this shift lays a deeper transformation: the future of consumption is no longer defined by how much people spend but by how deliberately they choose to spend it. This article was published in thejakartapost.com. Click to read: https://www.thejakartapost.com/business/2026/03/24/ramadan-2026-more-selective-not-slower.html?utm_source=(direct)&utm_medium=home_latest.

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Indonesia Hopes to Sign EU Trade Pact by May

February 13, 2026 Jakarta. Indonesia is looking to sign the free trade agreement with the European Union or EU by May, according to a minister, as Jakarta wants to penetrate the bloc that accounts for 18% of the world economy as soon as possible. Last September, both sides finally announced a “substantive conclusion” to the negotiations for an Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA). The talks lasted for almost a decade, with some hiccups in relations over those years. The CEPA deal, which promises massive tariff eliminations, is currently undergoing a “legal scrubbing” process. The text has to go through translation into several European languages as well as Indonesian. Trade Minister Budi Santoso recently told reporters that Jakarta was hoping to have the document ready for signing in the coming months. “This legal scrubbing process takes time, but there should be nothing left to negotiate,” Budi said as all clauses had been agreed upon. Asked who would ink the documents, Budi said that such agreements in general usually get signed by the trade minister —  in other words, himself. However, Budi signaled that there was still a chance for the signing to happen at a President Prabowo Subianto-European Commissioner Ursula Von der Leyen meeting.  “But it all depends on the leaders. … It actually doesn’t matter [who signs the document]. Hopefully, the EU can speed up the process,” the minister said. The leaders’ last bilateral talks dated back to July 2025, when Prabowo set foot at the bloc’s Brussels headquarters. They even reached a “political agreement” to fast-track the CEPA talks against the backdrop of US sky-high tariffs hitting the world. “We are living in turbulent times. When economic uncertainty meets geopolitical volatility, partners like us must come close together,” Von der Leyen said at the time. Jakarta aims to have the EU CEPA enter into force in early 2027. Indonesia-EU trade amounted to $30.4 billion throughout 2024, with Jakarta registering a $4.4 billion surplus that year, data showed. They have agreed to eliminate tariffs on over 98% of the tariff lines. The pact is expected to provide a strong boon for Indonesia’s key exports such as palm oil, textiles, and footwear. While the CEPA is about to mark a new episode in the Indonesia-EU ties, their relations are not free from challenges. Indonesia, the world’s largest palm oil supplier, has been a sharp critic of the EU’s anti-deforestation law, which can be a conundrum for its small farmers. Throughout 2025, Indonesia has claimed victories against the EU at several World Trade Organization (WTO) disputes related to palm oil, stainless steel, and biodiesel. This article made by Jayanty Nada Shofa, JakartaGlobe.id https://jakartaglobe.id/business/indonesia-hopes-to-sign-eu-trade-pact-by-may

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