Indonesia Pledges Action on Companies Causing Catastrophic Sumatra Floods

Indonesia is investigating companies suspected of clearing forests around flood-hit areas in Sumatra, its forestry minister said on Thursday, acknowledging that poor forest management worsened the disaster. 

The death toll from cyclone-driven floods and landslides rose to 836, with hundreds still missing across West Sumatra, North Sumatra and Aceh, according to government data. Landslides have cut power and blocked roads, hampering rescue efforts. 

Forestry Minister Raja Juli Antoni told parliament that the government will review forest governance, consider a moratorium on new permits and revoke the licenses of violators. He did not identify specific companies. 

Energy Minister Bahlil Lahadalia also signaled that mining permits could be scrapped if rules were breached. 

Environmental Groups Blame Deforestation For Scale 

Environmental groups blame deforestation linked to mining and logging for amplifying the damage, pointing to images of logs washed ashore that have sparked public outrage. 

Sumatra has lost 4.4 million hectares of forest since 2001, said David Gaveau, founder of deforestation monitor Nusantara Atlas. 

Among the permit holders is PT Agincourt Resources, which operates the Martabe gold mine. The company told Reuters it supports the ministry’s review and is committed to compliance. 

“We are ready to provide the necessary data and information and fully support every oversight step in accordance with regulations,” a company spokesperson said. 

Indonesia Palm Oil Association chairman Eddy Martono told Reuters he had not received any information that any GAPKI member had been questioned by the authorities. 

Isolated Areas Still Cut Off 

Late on Thursday, rescuers said some isolated areas had been reached, such as Aceh Tamiang, but access to the Central Aceh and Bener Meriah districts remained blocked. 

“We will continue to expedite the opening of land access so that there are no more areas in Aceh that remain isolated from land routes,” disaster management agency spokesperson Abdul Muhari told reporters, adding that aid would be airlifted into hard-to-reach areas. 

In Aceh Tamiang in Aceh province, the smell of decay hung in the air as residents warned rescuers that many bodies may still be buried under mud and debris, provincial spokesperson Muhammad MTA said. 

Authorities are racing to restore electricity and deliver fuel and cooking gas across the three hardest-hit provinces, aiming to stabilize supplies by the weekend, the energy minister said. 

Source: Reuters 
 

Indonesia Maintains Trade Surplus Despite Oil and Coal Export Slump

Indonesia extended its trade surplus in October despite a slowdown in exports amid declining oil and gas shipments. 

Statistics Indonesia (BPS) deputy for distribution and services Pudji Ismartini said in a press conference on Monday that the country posted a trade surplus of USD 2.39 billion in October, marking the 66th consecutive monthly surplus since May 2020. However, the figure was down from the USD 4.34 billion surplus recorded in September. 

The October surplus was largely supported by non-oil and gas commodities, particularly crude palm oil, coal, iron and steel. 

In contrast, the oil and gas sector booked a USD 1.92 billion deficit, weighed down mainly by crude oil and oil products. 

“Cumulatively, the January–October period recorded a surplus of USD 35.88 billion. This surplus was supported by a USD 51.51 billion surplus in the non-oil and gas sector, while oil and gas remained in deficit at USD 15.63 billion,” Pudji said. 

Exports slowed in October to USD 24.24 billion, down 2.31% year-on-year (yoy). Pudji said the decline was largely driven by a 33.6% fall in oil and gas exports, while non-oil and gas exports also dropped 0.51%. 

Crude oil exports plunged 54.86%, followed by steep declines of 40.11% in oil products and 26.2% in gas. 

In the non-oil and gas sector, the mining industry experienced the sharpest drop, with export value falling 30.92%. Mineral fuel commodity groups, mainly coal, saw the largest yoy decline at 19.04%. 

As of October, cumulative exports reached USD 234 billion, up 6.96% yoy. The strongest growth came from the manufacturing sector, which contributed USD 187.82 billion, up 15.75%, followed by agriculture, forestry and fisheries. 

Imports also slowed in October, falling 1.15% yoy to USD 21.84 billion, mainly due to a 23.32% decline in oil and gas imports. 

Non-oil and gas imports grew 3.26%, although vehicles, iron and steel, and organic chemicals recorded significant declines of 17.7%, 14.7% and 10.3%, respectively. 

Indonesia’s largest surplus contributors included the United States at USD 14.93 billion, followed by India at USD 11.29 billion and the Philippines at USD 7.18 billion. Indonesia is still in talks with the US regarding “reciprocal” tariffs, which Washington linked to Indonesia’s sizable trade surplus. 

Bank Permata chief economist Josua Pardede wrote in an analysis on Monday that the contraction in exports indicated “ongoing normalization following the implementation of reciprocal tariffs.” 

He noted that the contraction aligned with weaker import demand from China amid its softening domestic economy, continued normalization after the reciprocal tariffs imposed in August and lower government export-duty revenues as reflected in the October state budget realization. 

He added that weaker annual import performance was partly caused by a high base in the previous year, noting that imports had increased by around 7.4% on a monthly basis amid stronger domestic manufacturing activity. 

Indonesia’s Purchasing Managers’ Index (PMI) rose to 53.3 in November, according to a monthly survey published by S&P Global on Monday. It was the highest level recorded since February and marked the fourth consecutive month above the 50-point threshold separating expansion from contraction. 

Source: Jakarta Post 

IEU-CEPA Completed, Coordinating Minister Airlangga Opens Option to Expand QRIS to the European Union

Coordinating Minister for Economic Affairs Airlangga Hartarto signaled that Indonesia’s national quick-response code standard, QRIS, may eventually be used in the European Union. This plan aligns with the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which includes cooperation in the digital sector. 

He has not yet confirmed whether QRIS will be usable in Europe when IEU-CEPA is implemented in 2027. Its expansion will begin in East Asia next year, particularly Japan and South Korea. 

“After that, QRIS is planned to enter the Middle East, such as the United Arab Emirates and Saudi Arabia. We will observe the development of QRIS usage abroad before entering the European market,” Airlangga said at the National Leadership Meeting of the Indonesian Chamber of Commerce and Industry in Jakarta on Monday, December 1. 

Previously, Bank Indonesia Deputy Governor Filianingsih Hendarta targeted QRIS to be usable for transactions or purchases in China and South Korea by 2026. The central bank has also set targets to expand QRIS to other countries such as India. 

Bank Indonesia Governor Perry Warjiyo said digital payment transaction volume reached 4.45 billion transactions in October 2025, growing 31.20% year-on-year. The central bank recorded mobile and internet banking transaction volumes growing 2.91% yoy and 12.03% yoy, respectively. 

These figures include QRIS transactions, which surged 139.45% yoy in October 2025. “This positive performance is supported by an increase in both users and merchants,” Perry said. 

Source: Katadata