Middle-class Indonesians are among the groups most vulnerable to currency depreciation, because a larger share of their spending is impacted by changing exchange rates.

Asia-Pacific trade envoys gathered in China are expected to discuss multilateral cooperation, trade imbalances and supply chain resilience in the face of global shocks, including the US-Israeli war on Iran.

Economic activity in the euro zone shrank at its sharpest rate in more than two-and-a-half years in May, as a war-driven surge in living costs hammered demand for services and pushed overall input price inflation to its highest in three-and-a-half years, a survey showed on Thursday.

"We are monitoring the situation ... and several steps are under consideration. The situation is globally quite challenging," Goyal said. 

The plan was unveiled by Defense Minister Sjafrie Sjamsoeddin following his meeting with United States Defense Secretary Pete Hegseth last month, during which Hegseth conveyed his intention to build a maintenance hub for the Hercules aircraft.   

The case centers on PT Perusahaan Air Indonesia Amerika (PAIA), a foreign investment joint venture backed by investors from the United States, Singapore and Saudi Arabia, which alleged it had been unfairly treated by state-owned firm ITDC.

The rupiah’s depreciation has raised the costs for Indonesia’s National Strategic Projects, with contractors warning of squeezed margins, cash flow strain and potential construction delays for import-heavy infrastructure works.

In a speech outlining the Macroeconomic Framework and Fiscal Policy Points (KEM-PPKF), Prabowo told the House of Representatives on Wednesday that the deficit for 2027 was set at 1.8 to 2.4 percent of gross domestic product (GDP), below the legal cap of 3 percent.

EU lawmakers and member states reached a deal in the early hours of Wednesday to implement the bloc's nearly year-old trade pact with the United States, with President Donald Trump threatening new tariffs unless it is done by July 4.

Beyond negative sentiment related to warning from global index compiler MSCI, global investors have also become more sensitive to concerns surrounding Indonesia’s fiscal resilience, particularly amid rising global energy prices.

Japan's economy grew faster than expected in the first quarter on solid exports and consumption, data showed, though momentum will face a severe test as the full force of the energy shock from the Iran war filters through businesses and consumers.

Authorities noted that unfavorable weather conditions and attacks from plant pests and diseases had temporarily disrupted agriculture production in several areas.

Ministers are set to discuss the economic fallout from the conflict and volatility on global bond markets, which are of particular concern to Japan, as they also seek common ground on tackling economic tensions and global imbalances.

Better-than-expected exports and China's domestic fuel-pricing controls have helped weather the energy shock, but higher input costs threaten to squeeze already weak factory margins and further dampen consumer spending if the conflict drags on.

Signs of a flight to safer assets also emerge in the first quarter as rupiah weakness and heightened uncertainty prompt people to diversify wealth and seek protection from depreciation.

President Prabowo Subianto has downplayed the depreciation of the rupiah with statements economists say may send a dangerous signal to the market, potentially dealing a further blow to the currency.

Danang Girindrawardana, executive director of the Indonesian Textile Association (API), said that local business community had also conveyed similar complaints to the government but did not receive an adequate response.

Trump left Beijing on Friday after two days of talks with President Xi Jinping that featured pageantry and warm rhetoric but limited detail on concrete outcomes across trade and investment.

The orders, if finalized, would mark Boeing's first major Chinese deal in nearly a decade, after the US planemaker was largely shut out of the world's second-largest aviation market amid trade tensions between Beijing and Washington.

Retailers struggle to stay afloat as orders from government institutions evaporate, while workers with advanced degrees are not getting the jobs to match.  

The orders, if finalized, would mark Boeing's first major Chinese deal in nearly a decade, after the US planemaker was largely shut out of the world's second-largest aviation market amid trade tensions between Beijing and Washington.

Biak was selected for its proximity to the equator and its direct access to the Pacific Ocean, allowing first-stage rocket boosters to safely fall into open waters after launch.

United States President Donald Trump said he had made "fantastic trade deals" with China's Xi Jinping, as the pair met on Friday at final talks of a superpower summit, but the news gave markets little to cheer, while Beijing warned Washington about mishandling Taiwan and over the US war with Iran.

President Donald Trump and an entourage that included Nvidia's Jensen Huang and Elon Musk were greeted with a lavish welcome in Beijing on Wednesday as he prepared to ask China's Xi Jinping to "open up" to US business at the start of their two-day summit.

The Indonesian currency hit a new historic low two weeks ago and is trading near 17,557 per US dollar as global uncertainty mounts.

Consumer inflation in the United States hit a three-year high in April, government data showed Tuesday, with the economic fallout of the Iran war rippling through the world's largest economy.

Indonesians effectively pay more to fly from Jakarta to Surabaya than from Denpasar to Sydney, a signal that something in the structure of the domestic market is not working as it should.

Visitors from the Middle East, Europe and the US typically spend more and stay longer in Indonesia compared with tourists from other regions, Tourism Minister said.

President Prabowo Subianto has called on ASEAN member states to accelerate the development of renewable energy and make progress on the long-proposed Trans-Borneo Power Grid, warning that energy security is an “urgent” necessity amid instability in the Middle East.

China's export growth gathered pace in April as factories raced to meet a wave of orders from AI-related industries and other buyers seeking to stockpile components amid fears the Iran war could push global input costs even higher.