Indonesia optimistic about economic growth outlook for 2026
Speaking at the opening session of the House of Representatives in Jakarta on August 15, Prabowo said this optimism is based on sound financial management, coupled with economic restructuring and productivity improvements. He also set a target for interest rates to remain at around 6.9%.
Jakarta (VNA) – Indonesian President Prabowo Subianto has set an economic growth target of 5.4% in 2026, with inflation at 2.5% and stable macroeconomic indicators.
Speaking at the opening session of the House of Representatives in Jakarta on August 15, Prabowo said this optimism is based on sound financial management, coupled with economic restructuring and productivity improvements. He also set a target for interest rates to remain at around 6.9%.
He also stressed the goal of balancing the national budget by 2027 or 2028, putting an end to the prolonged fiscal deficit of recent years. This is considered a turning point in strengthening public finances, easing debt pressure, and enhancing the capacity to invest in priority sectors.
🐠 The Indonesian government expects to reduce the unemployment rate to 4.44%–4.96% and the poverty rate to 6.5%–7.5% by 2026. The Gini coefficient is projected to fall to 0.377–0.38, while the Human Capital Index (HCI) is expected to rise to 0.57. In addition, improving farmers’ welfare index and the share of formal employment are also among the priority targets./.
The Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the EU will open up broader access for Indonesian exports to the EU, describing it as a vast market with over 460 million people, a substantial GDP, and significant trade activity.
President Prabowo noted that in 2024, the country imported around 500,000 tonnes of corn. Meanwhile, total dry corn output from January to July 2025 is estimated at 9.45 million tonnes, an increase of 0.94 million tonnes, equivalent to 11.08% rise over the same period last year.
Army battalions comprising thousands of soldiers have been deployed, focusing on agriculture and health tasks throughout Indonesia, particularly in remote areas.
Thailand’s House of Representatives voted on August 15 evening to approve the 2026 fiscal year budget bill, valued at 3.78 trillion THB (116.5 billion USD), with 257 votes in favour and 230 against.
According to a press release issued by the Cambodian Royal Army, both sides reaffirmed their commitment to implementing the outcomes of recent high-level engagements, including the July 28 meeting between Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai in Putrajaya, Malaysia, as well as the Extraordinary General Border Committee (GBC) Meeting held in Kuala Lumpur earlier this month.
The initiative supports the government’s Soft Power policy to position Thailand as a leading global destination while presenting the country’s charm through fresh perspectives and unforgettable experiences.
UNFPA is proud to stand with local health workers, volunteers and community responders. In 2024, it supported 46 emergencies in 16 countries in Asia and the Pacific, reaching millions of women and girls. UNFPA partners with national and women-led organisations to strengthen locally led, inclusive responses and shift the power to those who understand its realities best.
Airports of Thailand (AOT), the company managing Thailand’s chain of international airports, has reported robust growth in the first nine months of the fiscal year, with flights up 9.79% and passenger volume up 7.87%, generating a net profit of 14.26 billion THB (440 million USD).
Mohd Azamanizam Baharon, President of the Malay Entrepreneurs and Industrialists Association of Malaysia (PERDASAMA), said digital tools such as point-of-sale systems, automated accounting, cloud-based inventory management, and customer relationship management (CRM) applications have streamlined MSME operations and improved accuracy.
Chiang Rai province in northern Thailand is recognised as the second safest city in the world for female digital nomads, just after Taipei, Taiwan (China).
Growth will continue to be led by Malaysia, Indonesia and Brunei due to their large Muslim populations, enabling regulations, access to sukuk, and potentially improving ties with Gulf Cooperation Council (GCC) countries
President of the Republic of Korea (RoK) Lee Jae Myung and his Philippine counterpart Ferdinand Marcos Jr. discussed expanding trade and investment based on the bilateral free trade agreement, broadening the mutually beneficial cooperation, including Korean companies' involvement in the Philippines' infrastructure projects, such as maritime bridges, railways, and shipbuilding.
The Thai National Rice Policy and Management Committee (NRPC) reviewed and approved a framework for assistance to off-season rice farmers in 2025 to mitigate the impact of low global rice prices.
Police apprehended one suspect and seized a 22-wheel truck registered in Vientiane, which had been specially modified to hide and transport the illicit substances.
As the implementation of the regional ASCC Blueprint 2025 and national Project 161 draws to a close, ministries, sectors, and localities have been actively sharing information, exchanging lessons learned, and discussing challenges faced during the implementation process.
Vietnam's modern political image, both domestically and internationally, is becoming clearer and more prominent than ever. Vietnam is pursuing a well-defined reform strategy that is being actively promoted and implemented, reflecting the nation’s commitment to real and meaningful change.
Tokyo will also support Japanese firms in conducting trials in Indonesia to test the speed and security of their equipment. Securing telecom infrastructure contracts there will mark the first entry of Japanese players into this market.
This was the outcome of the 3rd meeting of the Laos - Philippines Joint Commission for Bilateral Cooperation (JCBC) on August 13, within the official visit to the Philippines by Lao Foreign Minister Thongsavanh Phomvihane.
The meeting welcomed ADB’s readiness to invest up to 10 billion USD of its own resources over the next decade in support of the APG, including crossborder interconnections, and other APG-related investments (domestic grid strengthening and renewable energy for power export). It also also welcomed investment from the WB through its 2.5 billion USD "Accelerating Sustainable Energy Transition Multi-Phase Programmatic Approach (ASET-MPA)" programme, approved in 2024 to ramp up renewable energy and promote power trade across the region.
Archaeologists from Australia and Indonesia found the small, chipped tools, used to cut little animals and carve rocks, under the soil in the region of Soppeng in South Sulawesi. Radioactive tracing of these tools and the teeth of animals found around the site were dated at up to 1.48 million years ago.
ASEAN needs about 422 million USD, of which 290 million USD is for reducing greenhouse gas emissions and more than 100 million USD for adaptation efforts
In an article published on its website on August 12, the institute underlined that tobacco use remains a leading cause of preventable death in Southeast Asia.
The news agency quoted Digital Minister Gobind Singh Deo as saying that the NCCP directly supports the objectives of MyDIGITAL and the Malaysia Digital Economy Blueprint by unlocking real economic potential, apart from providing a clear direction for the country’s digital transformation journey.
