February 2026

In brief · 8 stories · outlook -5 ↑ better than January · mostly Economy & Politics

It was another downbeat month for Indonesia's image abroad, though lighter than January's. Budget doubts and worries about weaker institutions set the tone; the Australia security treaty and expanding coffee chains helped, but not enough to turn it positive.

• The economy dominated a lighter month, and the read abroad was uneasy: Prabowo's first full budget leaned on a costly free-meals promise as tax revenue lagged, and a labour-law rewrite looked tilted toward business.
• Analysts abroad worried about weaker institutions after politicians took seats at the central bank and top court, and faulted a slow official response to deadly Sumatra floods.
• The brighter notes were external, led by Indonesia's biggest security treaty with Australia in decades and homegrown coffee chains pushing to expand across the region.

Why it matters A budget that bets on free meals while tax revenue lags, plus political picks at the central bank, affect how stable your money and public services are. Watch the labour-law rewrite closely, because it may change your own work contract.