The newly appointed Finance Minister Purbaya Yudhi Sadewa has wasted no time asserting his fiscal philosophy within just a month in office. One of his first major decisions, rejecting the call for a third round of tax amnesty, has sparked debate in policy circles, pitting the need for short-term revenue against the imperative of restoring long-term credibility to Indonesia’s tax system.

Indonesia has again amended Law No. 1/2003 on State-Owned Enterprises (SOEs), formally transforming the SOEs Ministry into the SOEs Regulatory Agency (BP BUMN). The amendment marks a significant shift in governance, transferring the ministry’s operational authority to the Daya Anagata Nusantara (Danantara) Investment Management Agency, while BP BUMN will retain a purely regulatory role. In effect, the change consolidates Danantara’s control over the management of SOEs, as its Chief Operating Officer, Dony Oskaria, has been appointed to concurrently lead BP BUMN, aligning the two institutions’ operational and oversight functions.

When the Indonesian Solidarity Party (PSI) chairman, Kaesang Pangarep, announced the party's new leadership lineup for the 2025-2030 period, a mysterious figure designated only as "Mr. J" was listed as the chief patron, with the full name to be revealed soon. PSI secretary general and Forestry Minister Raja Juli Antoni explained that the name was being kept secret under Kaesang's instruction.

Celebrating its 80th anniversary, the Indonesian Military (TNI) held a massive parade in Jakarta on Oct. 5, but amid growing concerns about the military intruding more and more into the political arena, the display of power may have sent the wrong message to some quarters about Indonesia’s democracy, already in peril.

President Prabowo Subianto has recently implemented another round of changes to his cabinet, significantly expanding the executive branch by bringing in numerous figures, many of whom are affiliated with his Gerindra Party. This political maneuver has resulted in an increasingly swelling government structure, raising serious concerns about the potential for overlapping authority and administrative ineffectiveness.

Indonesia will need to accelerate both revenue collection and government spending in the final months of this year, after realizing just over half of the 2025 outlook by the end of August. The Finance Ministry reported that state revenue reached Rp 1.64 quadrillion (US$98.61 billion) as of Aug. 31, or 57.2 percent of the outlook, and realized state spending of Rp 1.96 quadrillion (55.6 percent). This left the 2025 state budget with a deficit of Rp 321.6 trillion, equal to 1.35 percent of gross domestic product (GDP).

The government’s ambition to secure long-term affordable housing funds through the public housing savings program, Tapera, has hit a major setback. The Constitutional Court recently annulled the 2016 Tapera Law in its entirety, declaring that the legislation must be revised within two years or risk being void altogether. The ruling has thrown the program, which was scheduled to be fully implemented in 2027, into limbo and further complicated the government’s already ambitious goal of building three million houses annually.

Public demand for police reform necessitates the replacement of National Police chief Gen. Listyo Sigit Prabowo, who bears ultimate responsibility for the recent wave of bloody demonstrations. Otherwise, it would be yet another example of institutional failure, with the police under Listyo’s leadership remaining entangled in serious abuses of power, a lack of accountability and persistent public distrust.

Upon returning from his weeklong diplomatic trip, President Prabowo Subianto was forced to quickly shift his focus from international affairs to a domestic crisis.

The planned exit of British energy company Shell exit from the gas station business in Indonesia, which is set to wrap up in 2026, has been marred by a troubled send-off. It comes at a time when private fuel retailers have struggled with national gasoline shortages throughout September, and Shell has been no exception to the supply crunch.

President Prabowo Subianto gave a passionate speech at the United Nations General Assembly (UNGA) on Sept. 23 that impressed many people, paving the way for the Indonesian leader to set himself as an international leader ready to play his part in promoting global peace and order.

Bank Indonesia (BI) cut its benchmark interest rate for the fifth time this year, lowering it to 4.75 percent just a day before the United States Federal Reserve (the Fed) announcement. The move reflected BI’s bet that the US monetary authority would also ease its policy. A day later, the Fed indeed cut the federal funds rate (FFR) for the first time in 2025. Both central banks’ decisions were driven by concerns over slowing economic growth but also sparking debate on government influence in central bank decisions.

When President Prabowo Subianto deployed the Indonesian Military (TNI) to the streets to restore order during last month’s nationwide protests, it was merely the latest example of a pattern the country has witnessed since he took office in October last year.

The surprise appointment of Deputy Finance Minister Anggito Abimanyu as chairman of the Deposit Insurance Corporation (LPS) marks a clear break from established selection procedures and casts uncertainty over President Prabowo Subianto’s plan to create a separate revenue collection agency.

The House of Representatives has added 52 draft bills to the second amendment of the 2025 National Legislation Program (Prolegnas), an increase from the initial 41. Meanwhile, the number of bills prioritized for 2026 stands at 67. Beyond this matter of quantity, the House must place greater emphasis on the quality of legislation, ensuring that laws reflect the interests of the people rather than serving only a few elites within the ruling coalition.

The 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.

In 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.

Indonesia'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. Should they fail to meet the production requirements, the government reserves the right to claim their bank guarantees in line with the local content requirement (LCR) roadmap and investment regulations.

The 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).

Newly 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.

In 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. 

Amid 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.

Just 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.

Bank 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.

Indonesia’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.

Once considered a symbol of Indonesia's future, Nadiem Makarim has experienced a dramatic fall from grace.

This 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”.