Looking ahead to the economy of 2026, JCI breaks another record, labor wages, food self-sufficiency efforts

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The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Indonesia's 2026 Economy Between Pressures and Opportunities

The Indonesian economy enters 2026 with various pressures and opportunities. Household consumption is still the main pillar, but its resilience is being tested by a weakening middle class and labor market uncertainty. This became the common thread in the Indonesia Economic Outlook 2026 at the University of Indonesia's Faculty of Business Economics (FEB UI), Monday (24/11/2025). The economists present agreed that the 2026 economy needs a more solid policy direction so that the recovery momentum is not eroded.
Former Vice President Boediono reminds us that Indonesia's economic success in the past was supported by strong coordination between technocrats and political decision-makers. Effective policies do not stop at analysis, but must be transformed into operational steps that can be carried out across agencies. Member of the National Economic Council, Firman Hidayat, said that Indonesia can only achieve the vision of a developed country in 2045 if the economy grows by 6% to 7% over the next 5-10 years.

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Wage Gap Could Trigger Industry Shift to Central Java

Cikarang and Karawang industrial estates are starting to be abandoned by some industry players. Based on a report by CBRE Advisory Services Indonesia early last week, the industrial area, which has been the center of manufacturing in West Java, has begun to be abandoned by some industry players. This shift was triggered by the tendency of companies to look for areas with lower labor costs. The relocation step mainly occurs in labor-intensive sectors that are sensitive to wages. The local government set the Bekasi Regency minimum wage (UMK) for 2025 at around IDR 5.55 million and Karawang's UMK at around IDR 5.59 million. These two regions are listed as the regions with the highest wages in West Java.

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Efforts to Achieve Food Self-Sufficiency

After the unauthorized import of 250 tons of rice in Sabang, Aceh, on Sunday (23/11/2025), the discourse on the government's seriousness in promoting food self-sufficiency has surfaced again. In addition to reducing imports, let alone closing illegal rice imports, other steps are needed to truly realize food self-sufficiency.

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JCI records 19th highest record this year

The Composite Stock Price Index (JCI) again recorded an all-time high (ATH) on Monday trading (24/11/2025) at 8,570.25. This is the 19th time the JCI has recorded an ATH throughout 2025. Director of Development of the Indonesia Stock Exchange (IDX) Jeffrey Hendrik said, currently the increase in JCI has begun to be evenly distributed, not only supported by a number of conglomerate stocks. "It looks like today (Monday) that it depends on the market mechanism. If we look at it evenly, the increase has been supported by multi-sectors. So hopefully this growth will be sustainable," Jeffrey said when interviewed, Monday (11/24/2025).

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Great Potential and the Right Momentum to Develop the Aluminum Industry

Amid the high demand for electric vehicles (EVs) that require lightweight materials or aluminum, Indonesia is taking part in the supply chain, potentially even dominating the global market. With around 4% of the world's bauxite reserves, Indonesia holds the key to aluminum raw materials for EVs. Globally, Indonesia is the 5th largest bauxite producer by 2024, with production reaching 32 million tons. This is just below Brazil (33 million tons), though far below Guinea (130 million tons) and Australia (100 million tons) based on USGS data. Optimism is growing for Indonesia to develop its aluminum industry.
However, making this happen is not easy. Despite its vast resources and strong position in raw bauxite production, Indonesia's aluminum industry still faces challenges downstream. Reports from USGS and Inalum show that Indonesia's current primary aluminum production is still relatively low, at only around 275,000 tons. This is only about 0.38% of the total global aluminum production of 72 million tons.

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Food & Agriculture Summit V 2025 was organized by the DPP of IPB Alumni Association and IPB Postgraduate Student Forum as part of the series of Pesta Rakyat IPB Alumni Return to Campus. The event takes place on Tuesday, November 25, 2025, at 8.00-16.00 WIB at the IPB International Convention Center (IICC), Botani Square Mall, Bogor. As in the event theme, this event will focus on a one-year scientific evaluation of government policies in the areas of Food Security, Free Nutritious Food (MBG), and Koperasi Merah Putih. The aim is to assess the journey and effectiveness of the priority programs of President Prabowo Subianto's administration in realizing food security and fulfilling community nutrition. Information related to the series of events and how to join can directly access the IPB Alumni Instagram social media.

The Ministry of Energy and Mineral Resources (ESDM) presented the Grand Launching of Indonesia's Oil and Gas Exploration 2025 with the theme "Unlocking Indonesia's Upstream Potential: Invest in Indonesia's Energy Future". The event will be held on November 25-26, 2025 at Sheraton Gandaria City, Jakarta. Important speakers were also presented at this event such as the Minister of Energy and Mineral Resources, Director General of Oil and Gas, Chairman of SKK Migas, and many more. The program highlights of this event include the introduction of new working area opportunities, strengthening collaboration with various stakeholders, and delivering the latest updates on the development direction of Indonesia's upstream oil and gas industry. For more information, you can directly access the official social media of the Ministry of Energy and Mineral Resources.

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