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The government’s plan to spend an estimated Rp 11 trillion (US$619 million) opening bank accounts for more than 200 million Indonesians aged 17 and above is difficult to justify when fiscal space is already tight and financial inclusion has reached 93.61 percent. If the objective is to reach the unbanked or improve the delivery of social assistance, there is little reason to give new accounts to almost every adult, including those already banked. Scarce public funds should be targeted at people who actually need them.
17 hours agoIndonesia’s long-standing ambition to build a high-speed rail network has evolved from a national prestige project into a potential fiscal burden. Whoosh’s continuing losses and mounting debt have already drawn the Finance Ministry closer to backstopping the project. Given its history of delays, cost overruns and overly optimistic projections, the question is whether Whoosh can deliver...
1 day agoThe Finance Ministry and state asset fund Danantara are at odds over who controls dividends from state-owned enterprises (SOEs), exposing an unresolved question at the heart of Indonesia's new state-asset architecture. Before Danantara was created, SOE dividends were paid to the state and recorded as non-tax revenue. Under the new framework, Danantara manages the shares and assets transferred ...
2 days agoOne distinctive feature that will characterize the incoming administration of president-elect Prabowo Subianto is an increase in the number of ministries and government agencies. Apart from splitting up existing ministries, Prabowo plans to overhaul the State-Owned Enterprises (SOEs) Ministry and establish his promised state revenue agency.
1 year agoThe plight of the Bakrie Group has not come to an end with its media arm entangled in massive debts. As the group’s crown prince forcefully took over the chairmanship of the Indonesian Chamber of Commerce and Industry (Kadin), the Central Jakarta Commercial Court granted an extension of a debt payment suspension for four media companies under the Bakrie Group.
1 year agoThe People’s Consultative Assembly (MPR), the country’s highest democratic institution, has revoked or reviewed decrees that have besmirched the reputation of Sukarno, Soeharto and Abdurrahman “Gus Dur” Wahid, respectively Indonesia’s first, second and fourth presidents, all of who are deceased. While the gesture to restore the good names of Sukarno and Gus Dur has not stirred up controversy, some have objected to the Assembly’s attempt to clear the way for conferring National Hero status on authoritarian ruler Soeharto.
1 year agoEnergy and Mineral Resources Minister Bahlil Lahadalia has stepped in to mediate the ongoing leadership dispute within the Indonesian Chamber of Commerce and Industry (Kadin), involving Anindya Bakrie and Arsjad Rasjid. Bahlil, who revealed the mediation through an Instagram post on Sept. 27, claimed that both parties had reconciled and pledged to maintain unity within Kadin. He also warned that provocateurs were exploiting the rift, which, if allowed to fester, could harm the organization’s integrity.
1 year agoThe newly inaugurated members of the House of Representatives began their term on Oct. 1 amid public skepticism as to whether they can make a break with the past. Although many new faces characterize the 580-strong House, the old big-tent coalition maintains its control over the legislative branch.
1 year agoIndonesia, now a member of the world’s biggest free trade agreement, the Regional Comprehensive Economic Partnership (RCEPP), has applied to join the world’s next biggest Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), which has been left by the United States but joined by China.
1 year agoWith the succession of national leadership fast approaching, the realization of president-elect Prabowo Subianto’s flagship free meals program is facing an arduous challenge. Due to budget constraints, several adjustments will have to be made to the original plan, which may compromise the program’s intended purpose.
1 year agoOutgoing President Joko ‘’Jokowi’’ Widodo has yet to sign a presidential decree that will effectively relocate Indonesia’s capital city to Nusantara, East Kalimantan. The Nusantara project may face a serious impediment as president-elect Prabowo Subianto will focus on his own priority programs, although on various occasions he has demonstrated a willingness to carry on the new capital city development.
1 year agoThe campaign period for the Jakarta gubernatorial election kicked off this week, but conspicuously missing from the race is former Jakarta governor Anies Baswedan, who all surveys say is the most popular figure for the job. The man who held the job in 2017-2022 is being kept out because no political parties chose him for their ticket. And when three political parties that had earlier endorsed his candidacy pulled out at the last minute, it was too late for him to register as an independent.
1 year agoLess than a month before his second and final term comes to an end, President Joko “Jokowi” Widodo inaugurated two of the world’s biggest copper and gold smelters on Sept. 23, essentially sealing his legacy in expanding the country’s mineral downstream industry, which has created rifts with major economic powers.
1 year agoAll eyes are still on Kaesang Pangarep, the youngest son of President Joko "Jokowi" Widodo, who became embroiled in a controversy over his use of a private jet for a recent trip to the United States. The controversy has only increased since Kaesang provided clarification over the matter to the Corruption Eradication Commission (KPK) on Sept. 17.
1 year agoThe Indonesian Democratic Party of Struggle (PDI-P) must soon decide whether it is joining the incoming government of Prabowo Subianto, whose inauguration as the country’s eighth president next month is approaching fast.
1 year agoFollowing a 20-year ban, the government has officially lifted the restriction on exports of sea sand, prompting protests from some quarters, including a former minister and environmental activists. President Joko “Jokowi” Widodo himself clarified that the new export permits are intended for sedimentation sand that is blocking shipping lanes, not from the seabed itself.
1 year agoPrabowo Subianto’s inauguration as the eighth president of Indonesia is scheduled to take place on Oct. 20, when he is also slated to introduce his cabinet. Given that the president-elect has been building a big-tent coalition government, the topmost question is whether he plans to distribute cabinet posts to reward his political allies or appoint technocrats to lead ministries during his rule.
1 year agoThe Indonesian Chamber of Commerce and Industry (Kadin) is currently embroiled in a leadership dispute, with two figures—Anindya Novan Bakrie and Arsjad Rasjid—each claiming the position of chair. The victory of the Prabowo Subianto-Gibran Rakabuming Raka presidential ticket is alleged to have fueled efforts to unseat the incumbent chair, Arsjad Rasjid, who was the campaign manager of a losing presidential candidate.
2 years agoThe House of Representatives has passed a revision of the Presidential Advisory Council Law, which will allow president-elect Prabowo Subianto to reward those who contributed to his electoral win with seats on the council.
2 years agoAs the House of Representatives ends its term, its special committee is out to conclude an investigation into alleged haj quota misallocation involving the Religious Affairs Ministry. Considering that such misallocation appears to happen almost every year and go unresolved, the House’s all-out efforts to uncover the irregularities this time around may be fraught with political motives.
2 years agoThe government has merged the country’s two state-owned airport operators into one, PT Angkasa Pura Indonesia, in a bid to improve efficiency, and eventually cut logistics costs in the country, while at the same time improving profitability. After the merger the new entity is now called InJourney Airports, part of giant state-owned aviation and tourism holding company PT Aviasi Pariwisata Indonesia (InJourney).
2 years agoAfter days of back and forth, the Corruption Eradication Commission (KPK) has dropped plans to question President Joko “Jokowi” Widodo’s youngest son Kaesang Pangarep to clarify the details regarding his lavish private jet trip to the United States, despite mounting public pressure to investigate. This decision further shows the KPK’s lack of seriousness and efforts to combat corruption without discrimination.
2 years agoA rushed law revision might allow Prabowo Subianto to build a big-tent coalition government after he is inaugurated on Oct. 20 as Indonesia’s eighth president, but the bigger question is if he has the skill and acumen to manage the diverse political parties and pressure groups he is bringing into the fold.
2 years agoThe government’s plan to differentiate the pricings of Commuter Line (KRL) tickets based on commuters’ identity card numbers (NIK) has sparked widespread public outcry. The new fare plan, aimed at providing subsidized ticket fares only to those eligible, would result in a fare increase for the middle class, who are in an increasingly precarious position.
2 years agoThe Indonesian Democratic Party of Struggle (PDI-P) sprang a surprise in the final hours of candidate registration for the Jakarta gubernatorial election, choosing Pramono Anung over heavy favorites Anies Baswedan and Basuki “Ahok” Tjahaja Purnama. The move is seen as opening space for reconciliation between PDI-P chairwoman Megawati Soekarnoputri and President Joko ''Jokowi'' Widodo.
2 years agoThe discourse on limiting the use of subsidized fuel brands Pertalite gasoline and Solar diesel has been a long-running debate under President Joko “Jokowi” Widodo’s administration. This time the government plans the limitation of Pertalite to take place on Oct. 1, 2024. President Jokowi’s stance has been indecisive regarding this matter, confusing the public once again.
2 years agoAnies Baswedan, the former Jakarta governor and candidate in the last recent presidential election, finds himself at a critical crossroads in his political career after failing to secure a nomination for the 2024 Jakarta gubernatorial race. With his ambitions momentarily stymied, speculation is rife about his next move. Anies has said he is considering forming a new political party to maintain his relevance until the 2029 presidential election.
2 years agoPresident-elect Prabowo Subianto intends to divide the Public Development and Housing (PUPR) Ministry into two separate entities: one focused exclusively on housing, and the other on infrastructure development, effectively undoing the 2014 merger that created the PUPR Ministry. This decision underscores the new administration's shift in priorities, placing greater emphasis on the housing sector, with an ambitious target to construct 15 million homes by the end of Prabowo's term.
2 years agoThe two men have agreed to dispense with the need for a transitional team.
2 years agoNine out of 76 candidates in the running to become Supreme Audit Agency (BPK) members for the 2024 – 2029 period are politicians from political parties in the Onward Indonesia Coalition Plus (KIM Plus) supporting president-elect Prabowo Subianto. The final decision on the new BPK members will be made later in September and will be sealed by President Joko “Jokowi” Widodo, whose term will end in less than two months.
2 years agoPresident Joko “Jokowi” Widodo suffered his first major political defeat, just two months before he steps down, when a popular revolt denied him the chance to field his youngest son to run in the November polls to elect the leaders of regional governments.
2 years agoPresident Joko “Jokowi” Widodo presented the draft state budget (RAPBN) for the 2025 fiscal year to the House of Representatives on Aug. 16, one of his last acts as president before giving the reins to the incoming administration under president-elect Prabowo Subianto. The RAPBN highlights the government’s focus on improving human capital.
2 years agoA landmark decision by the Constitutional Court on Tuesday has removed the legislative threshold for political parties or electoral alliances to nominate candidates in the regional head elections in November. The ruling is seen as a game changer, particularly for former Jakarta governor Anies Baswedan, whose path to the polls appeared to narrow after the majority of parties rallied behind Ridwan Kamil.
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