Indonesia shifts economic focus toward mineral industrialization and food security

Indonesia is experiencing a rapid shift in its economic structure through mineral-based industrialization. Foreign direct investment in the basic metal and non-machinery industries has surged from less than US$2 billion in 2010 to US$14 billion since 2019, driven largely by the country's ambition to process its own mineral commodities rather than just exporting raw materials.

To address food security during the dry season, the government is preparing 1 million tons of affordable rice through the SPHP program to stabilize prices. Additionally, 33.2 million beneficiaries are set to receive food assistance, and 150,000 tons of corn are being allocated to support small-scale poultry farmers.

In Bali, a migration of Gen Z and Millennial workers is driving a 100% increase in monthly co-living rentals, as professionals seek flexible housing for short-term projects. Meanwhile, industrial sectors like ceramics and glass are facing production risks due to limited natural gas supplies under the HGBT scheme, which may force companies to purchase more expensive liquefied natural gas (LNG) to maintain operations.