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View all search resultsThe government is accelerating funding mechanisms to secure Indonesia’s food, energy and water needs, but the latest regulatory changes raise concerns about oversight and potential misuse. On Sept. 22, the Government Procurement Agency (LKPP) issued Regulation No. 3/2025 on Guidelines for Procurement of Goods from Completed Works in the Development of Self-Sufficiency Areas. Under the new regulation, vendors are no longer required to undergo electronic bidding or conduct feasibility studies, a change that enables faster disbursement of funds but increases the risk of inefficiency and misuse.
19 hours agoIn the aftermath of the massive August anti-government riots, President Prabowo Subianto carried out two rounds of Cabinet reshuffles to consolidate power and control over his big-tent coalition government. The turmoil, which he described as bordering on treason, is the most serious challenge to his power since he took office in October last year. ...
1 day agoIndonesia's Industry Ministry will phase out incentives for fully built-up (CBU) imports of battery electric vehicles (BEVs) by the end of 2025, shifting the policy focus toward local production starting in 2026. Automakers such as BYD and Geely, which have pledged investments totaling Rp15.52 trillion (US$936.62 million), are required to begin assembling vehicles domestically from that year. ...
3 days agoThe latest cabinet reshuffle under the Prabowo Subianto administration has left the future of the State-Owned Enterprises (SOEs) Ministry uncertain. Erick Thohir, who previously led the ministry, has been reassigned to head the Youth and Sports Ministry, with no replacement or acting official named so far. Speculation over his successor is growing, while questions remain over the division of authority between the SOEs Ministry and the Daya Anagata Nusantara Investment Management Agency (Danantara).
4 days agoNewly installed Finance Minister Purbaya Yadhi Sadewa has jolted Indonesia’s policy landscape with an audacious move just days into his tenure. He has redirected the government’s excess budget balance of Rp 200 trillion (US$12.5 billion) from Bank Indonesia to state-owned banks, aiming to inject liquidity into the financial system, spur credit growth and ultimately jumpstart economic activity. Yet questions swirl over whether this is the right policy to propel Indonesia’s growth.
5 days agoIn the aftermath of the August anti-government riots, police have arrested more than 10 activists and social media influencers, charging them with incitement, hate speech, and spreading misinformation that led to violence and encouraged schoolchildren to participate.
6 days agoAmid intensifying public protests against lawmakers for their behavior and statements that hurt their voters, the House of Representatives has faced a crisis of confidence. Gerindra Party politician Rahayu Saraswati's resignation stands in sharp contrast to other legislators who have left their political futures in the hands of their parties.
1 week agoJust weeks after the largest wave of demonstrations against Prabowo Subianto’s presidency, the root of public anger remains unaddressed despite several government actions. While the controversial housing allowances for House of Representatives lawmakers were scrapped and arrogant politicians were suspended, the National Police, the institution responsible for the deaths of at least 11 individuals, including 21-year-old Affan Kurniawan, has largely remained unscathed.
1 week agoBank Indonesia (BI) and the Finance Ministry have announced another burden-sharing arrangement through Indonesian government securities (SBN), a mechanism typically reserved for easing the government’s fiscal burden during crises, even though no national crisis has been declared. Part of the proceeds will finance priority programs, continuing the central bank’s financial backing of government initiatives. Economists warn, however, that the policy risks undermining economic stability and BI’s independence.
1 week agoIndonesia’s capital market is facing mounting headwinds as the number of initial public offerings (IPOs) in 2025 has fallen far short of expectations, with only 22 companies going public by September against the year’s target of 66. The outlook has further deteriorated amid nationwide riots that have triggered massive capital outflows on fears of political instability, while investor confidence took another blow after a recent cabinet reshuffle saw Finance Minister Sri Mulyani—long regarded as a trusted figure with strong international credibility—step down from her post.
1 week agoOnce considered a symbol of Indonesia's future, Nadiem Makarim has experienced a dramatic fall from grace.
1 week agoThis month, protests demanding political and economic change continue, although smaller and more orderly. A clearer picture of demands that the government can respond to has been compiled into the “17+8 People’s Demands”.
1 week agoSri Mulyani Indrawati has finally stepped down as finance minister after nearly 14 years of steering Indonesia’s economy through crises and reforms. Less than a year into President Prabowo Subianto’s presidency, one of the most capable and respected figures in government has been reshuffled out. The decision has sent shockwaves through financial markets and reignited fears about waning foreign investor confidence. Many are asking if this moment will once again prove to be “Indonesia’s loss, and the world’s gain.”
2 weeks agoThe lack of a justification for President Prabowo Subianto's cabinet reshuffle has raised more questions than answers. The effectiveness of the reshuffle is questionable since two key positions, the coordinating political and security affairs minister and the youth and sports minister, remain unfilled.
2 weeks agoShortages have gripped Indonesia once again, with Shell, BP and Vivo fuel stations running low in several regions. The fuel shortages have caused long lines at Shell, BP and Vivo stations as well as increased demand at state-owned Pertamina stations, despite scandals over low-quality fuel.
2 weeks agoIndonesia’s stock market took a heavy blow in late August during nationwide riots and protests. On Aug. 29, the Indonesia Stock Exchange (IDX) Composite index fell to 7,830.49 from 7,952.09 the day before, a 1.53 percent drop.
2 weeks agoThe controversy over double jobs for deputy ministers should now end after the Constitutional Court prohibited them from serving as commissioners in state-owned enterprises (SOEs), reinforcing its previous ruling that barred ministers and other high-ranking officials from holding such positions.
2 weeks agoAs nationwide protests have subsided, a new power struggle has emerged among Indonesia's political elite, centering on who was behind the widespread unrest last week.
2 weeks agoThe Patriot Bonds, a debt instrument issued through Indonesia’s state asset fund Danantara, have attracted demand exceeding the amount offered, despite offering a much lower coupon rate than comparable government securities. Some analysts point to quiet pressure from the Prabowo Subianto administration as a factor in the oversubscription, raising concerns that the bond’s “voluntary participation” label masks market distortion and risks crowding out private financing.
3 weeks agoThe deployment of the Indonesian Military (TNI) to crack down on massive nationwide protests, some of which descended into violence, around the turn of the month may have helped restore order. President Prabowo Subianto, for one, felt comfortable enough about the situation in the country for him to make a quick trip to Beijing.
3 weeks agoBank Indonesia’s second consecutive rate cut in August, and its third this year, reflected both domestic headwinds and shifting global dynamics. The central bank lowered its benchmark rate by 25 basis points to 5 percent, just a week before the U.S. Federal Reserve signaled a dovish turn. That shift further expanded the policy space for emerging markets like Indonesia to ease monetary conditions. For the Prabowo administration, the decision offers timely support for its ambitious growth agenda.
3 weeks agoIllegal mining is hardly a hidden crime in Indonesia, it is an entrenched industry protected by powerful backers. The practice has persisted for decades, and remains unresolved even under President Prabowo Subianto’s administration. In his State of the Nation address, Prabowo pledged to confront active and retired police and military generals allegedly involved in the illegal mining business. Whether those words will translate into decisive action, and whether he is willing to target the true masterminds and their allies, remains to be seen.
3 weeks agoIndonesia has seen a turbulent week of public unrest centered on the House of Representatives (DPR), as outrage over lawmakers’ high pay and allowances spiraled into a broader movement demanding accountability, justice, and reform.
3 weeks agoPrabowo Subianto's administration is rolling out a significant overhaul of Indonesia's education system, introducing new initiatives like Sekolah Rakyat (People's Schools), specialized science institutions and an expansion of military-style schools. While these are presented as reforms, critics worry they could neglect the root causes of the country's education problems while incurring substantial financial and social costs.
4 weeks ago“Wanted! A stellar minister who’s ready to be sentenced to death if they commit corruption,” exclaimed Immanuel “Noel” Ebenezer, then-leader of the Jokowi Mania (JoMan) volunteer group loyal to former president Joko Widodo, in 2020.
4 weeks agoDanantara is preparing to restructure the ballooning debt of the Jakarta–Bandung high-speed railway, better known as Whoosh, which has continued to suffer heavy operational losses. Financial problems plagued the project long before trains ever ran. During construction, costs overshot the original budget by US$1.2 billion, forcing project operator PT Kereta Cepat Indonesia China (KCIC) to borrow more from the China Development Bank (CDB). Danantara’s intervention has triggered sharp public criticism. Many see it as yet another bailout of an ill-conceived venture, echoing the state rescues of Garuda Indonesia. Critics warn that the move entrenches a cycle in which profitable state-owned enterprises (SOEs)—whose surpluses fund Danantara—are siphoned off to prop up failing projects.
1 month agoSerakahnomics is the latest term coined by President Prabowo Subianto to describe an economic pattern that prioritizes the profit and wealth of a privileged few over the broader welfare and interests of the public. The phrase, which translates into “greedynomics”, captures the people’s frustration over soaring prices, scarcity of basic goods and widening inequality, but raises the question: Is it fair to place all the blame on businesspeople alone?
1 month agoA recent report by IndonesiaLeaks on the alleged misappropriation of funds in an Army housing program has raised concerns over the potential for a huge departure of troops from its ranks. The case risks undermining soldiers’ morale, even as President Prabowo Subianto has elevated the Indonesian Military (TNI) to a key role in national politics.
1 month agoPresident Prabowo Subianto used his first state of the nation address on Aug. 15 to talk up his hugely ambitious free nutritious meal program, claiming success although so far it has reached less than a quarter of the 83 million targeted recipients since its January rollout.
1 month agoPresident Prabowo Subianto has set an ambitious growth target of 5.4 percent year-on-year (yoy) for 2026, as announced during the presentation of the 2026 state budget draft (RAPBN). The proposed budget seeks to narrow the fiscal deficit to 2.48 percent of gross domestic product, while increasing total spending by 7.3 percent to Rp 3.79 quadrillion (US$231.81 billion). However, the heavy price tag of the government’s flagship priority programs, combined with the emphasis on central government spending, austerity imposed on regional budgets and heavier reliance on tax revenue, could complicate the realization of these growth aspirations.
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