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”.

Sri 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.”

The 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.

Shortages 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.

Indonesia’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.

The 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.

As 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.

The 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.

The 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.

Bank 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.

Illegal 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.

Indonesia 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.

Prabowo 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.

“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.

Danantara 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.

Serakahnomics 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?

A 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.

President 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.

President 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.

Ten months into his term, President Prabowo Subianto’s trademark austerity measures, designed to conserve funds for flagship programs like the free nutritious meal initiative, have finally collided with local realities.

The economy expanded 5.12 percent year-on-year (yoy) in the second quarter, defying expectations of a slowdown and igniting debate over where the growth is coming from and why many Indonesians say they cannot feel it. In a climate of public skepticism, every decimal point carries weight.

Bank Indonesia (BI) has cancelled the rollout of its Payment ID system, which was originally scheduled to launch on Aug. 17, Indonesia’s Independence Day. The system was designed to monitor transactions by assigning each Indonesian citizen a unique code linked to their national identification number (NIK). News of the launch sparked public backlash, as BI had yet to publish many of the system’s technical specifications.

President Prabowo Subianto's efforts to strengthen the Indonesian Military (TNI) have included creating several new positions and agencies. While these changes are framed as a way to prepare for future strategic challenges, they have also sparked concerns.

Jakarta is right in pushing Kuala Lumpur to join hands in developing the disputed, mineral-rich maritime area located east of Borneo in the Sulawesi Sea. Though the latter does not appear to be all that keen about the idea, it has not completely rejected it.

Joao Angelo De Sousa Mota has abruptly stepped down as president director of PT Agrinas Pangan Nusantara after just six months, putting a spotlight on the Daya Anagata Nusantara (Danantara) Investment Management Agency’s role and commitment in the food estate program. At the heart of his resignation was frustration over what he described as Danantara’s failure to prioritize and adequately fund Agrinas Pangan, stalling the SOE’s work mandate to support President Prabowo Subianto’s goal of achieving national food sovereignty.

Gerindra, President Prabowo Subianto's political party, is the third largest in the country, trailing only behind the nation's oldest party Golkar and the Indonesian Democratic Party of Struggle (PDI-P). For Gerindra to propel itself to the top in the 2029 elections, Prabowo must maintain his dual role as party chairman and the President.

Indonesia’s rice market is in turmoil, despite the government’s claim of holding the largest rice reserves in history. Prices continue to rise, consumers are paying more for lower-quality rice and the government’s response risks deepening the uncertainty. Its crackdown on rice businesses accused of producing oplosan rice, where medium-quality rice is mixed and sold as premium, is suspected of depleting supplies to retailers and driving up prices.

State-owned lender Bank Mandiri recently announced a major leadership shake-up to restructure both the Board of Commissioners (BoC) and Board of Directors (BoD). The changes come as lenders grouped in the Association of State-Owned Banks (Himbara) face mounting pressure from slowing financial performance, worsened by the banking industry's loan disbursement slowdown and increasing burdens from government-mandated programs.