Rice prices continue to increase in the beginning of the year despite controversial late importation of rice and market intervention by the State Logistics Agency (Bulog). Learning from the persistent price increase of rice, the National Food Agency (NFA) has tasked Bulog to conduct year-long market intervention to keep prices of this politically sensitive commodity in check.

The Indonesian Democratic Party of Struggle (PDI-P) may have come out at the top in the last two general elections, but whether it can score a hat-trick in 2024 depends on whether it is fielding a strong presidential candidate who can help it win the votes.

Troubled-ridden flag carrier Garuda Indonesia completed its massive debt restructuring, allowing the company to turn around to profit last year, after massive losses in the past few years, and its stock resumes trading in the Indonesian Stock Exchange beginning this week after being suspended for the past six months.

President Joko “Jokowi” Widodo presented a new year gift in the form of a government regulation in lieu of law (Perppu) on job creation. Signed on Dec. 30, 2022, Perppu No. 2/2022 replaced the Job Creation Law that in late 2021 was declared conditionally unconstitutional by the Constitutional Court (MK) and therefore had to be revised within two years in a process that must include meaningful public participation. 

Two Chinese workers died in an accident in the construction of the Jakarta-Bandung High-Speed Railway on Sunday, raising concerns about the project’s safety, timeline and costs. Since it began, the project has suffered multiple accidents, delays and ballooning cost overruns.

Former Jakarta governor Anies Baswedan will win in West Java, Banten and Jakarta; Central Java Governor Ganjar Pranowo will win in Central and East Java; and Defense Minister Prabowo Subianto will come second or third in all these five provinces on the island of Java. That is the prediction from the latest public-opinion survey by Polltracking of the likely outcome in the 2024 presidential race if it comes to a three-horse race.

The Jakarta-Bandung high-speed railway (HSR) service is expected to see lower demand than initially projected. At its inception, the Jakarta-Bandung HSR was estimated to transport 60,000 passengers per day, but a new study conducted after the emergence of the COVID-19 pandemic has cut the estimate by half. This means that the new railway services needs around 80 years to break even and start making a profit.

Recent allegations of data manipulation during the factual verification of political parties aspiring to contest the 2024 legislative elections have clouded hopes of a free and fair practice of democracy. A number of civil society organizations found that cheating took place in several regions, including South Sulawesi, North Sulawesi, East Nusa Tenggara (NTT), East Java, Bali, Central Kalimantan and Aceh.

Ever since Bank Indonesia (BI) announced their intent to to create a central bank digital currency (CBDC) in July, everyone voiced concern regarding the risk of the monetary authority becoming a competitor to digital wallet services. Last week, the central bank finally published their white paper on how they will be implementing the new digital rupiah, as well as addressing concerns from businesses and consumers.

Speaking on Nov. 26 at the gathering at Gelora Bung Karno Stadium, Jokowi said these were traits of a leader who had spent their time thinking about the wellbeing of the country.

Rice prices have been increasing lately as traders and the State Logistics Agency (Bulog) reported depleting rice stocks. The Trade Ministry approved the importation of 500,000 tonnes of rice to replenish Bulog’s stocks, however the Agriculture Ministry disagreed and argued there were enough rice stocks in the country, but that these were in the hands of farmers and traders.

President Joko “Jokowi” Widodo has proposed Navy chief of staff Admiral Yudo Margono as the new commander of the Indonesian Military (TNI). The House will conduct the formality of the fit-and-proper test next week and will almost surely endorse Yudo’s nomination. The president will then install Yudo as the successor to Army Gen. Andika Perkasa.

The government has changed the formula to calculate the minimum wage for 2023 to please labor unions supporting the government but disappoint businesspeople. The new formula will result in a higher increase of the minimum wage than the existing formula, but the government caps the increase at 10 percent maximum.

The NasDem Party has made its opening election gambit by declaring former Jakarta governor Anies Baswedan its chosen candidate for the 2024 presidential race. It is a strategy that could pay off handsomely if Anies goes on to win, but it is also a move that has triggered challenges to the party’s standing in the run-up to the general elections. Anies’ nomination is by no means certain. NasDem, or rather Anies, has to secure the support of at least two other parties to clinch the presidential ticket.

Indonesia has received pledges totaling US$20 billion from developed countries and global private lenders through the Just Energy Transition Partnership (JETP), led by the United States and Japan, to help the country retire its coal power plants, bringing forward the power sector’s peak emissions target to 2030 and achieving net-zero emissions by 2050. The JETP scheme is complemented by another global fund led by the Asian Development Bank (ADB) for Indonesia’s energy transition.

Amid their string of People’s Conferences (Musra), as many as 18 representatives of President Joko “Jokowi” Widodo’s volunteer groups have been seen embarking on a “political safari”. Recently, they met with Gerindra Party chairman Prabowo Subianto, after holding a similar meeting with Golkar Party chairman Airlangga Hartato. The move has raised questions regarding the groups’ game plan, more so considering how Jokowi has less than two years left in office.

The government finally migrated on Nov. 2 analog free-to-air TV to digital broadcasts through the analog switch off (ASO) program for almost half of 514 regions in Indonesia, including the Greater Jakarta area, after seven years of delay. The government will free some TV frequencies for other purposes, including 5G fast internet services. And yet, three TV groups challenged the ASO, arguing that the people are not yet ready.

As the current Indonesian Military (TNI) chief, Gen. Andika Perkasa, will reach his retirement age on Dec. 21, the public is anticipating who will be President Joko “Jokowi” Widodo’s choice of Andika’s replacement.

Democratic Party chairman Agus Harimurti Yudhoyono has been persistent in his efforts to secure a place as Anies Baswedan’s running mate in the 2024 presidential election. With the party’s electability on the rise amid intense coalition talks, Agus has redoubled efforts recently by seeking the blessing of NasDem Party chairman Surya Paloh.

President Joko “Jokowi” Widodo has insisted on proceeding with the Jakarta-Surabaya high-speed railway (HSR) project by extending the Jakarta-Bandung HSR to Surabaya in East Java, likely with the same Chinese investors, despite the financial challenge of completing the Jakarta-Bandung project, which has been bogged down with delays and massive cost overruns.

Megawati Soekarnoputri, the matriarch of the Indonesian Democratic Party of Struggle (PDI-P), is facing a dilemma in selecting the party’s nomination for the 2024 presidential election. The ideal choice would be a candidate who would go on to win the election, take the party to new heights and sustain the reign of the Sukarno dynasty in Indonesian politics.

Long dumped and shunned by investors, publicly listed coal miner PT Bumi Resources Tbk (BUMI), one of the largest mining companies associated with politically connected the Bakrie Group, is once again becoming a target of investors in the stock market following the entrance of the country’s premier conglomerate the Salim Group.

Political parties have been racing to announce who they will be backing in the 2024 presidential election. Most recently, the Indonesian Solidarity Party (PSI) declared its support for Central Java Governor Ganjar Pranowo in the election, saying he is the most suitable to carry on President Joko “Jokowi” Widodo’s legacy.

The Jakarta-Bandung high speed railway (HSR) test run with Chinese President Xi Jinping is only a month away, yet the project’s cost overrun has yet to be settled.

Since the NasDem Party recently declared outgoing Jakarta Governor Anies Baswedan its presidential candidate, the Golkar Party might be buckling under the pressure to finalize its choice candidate too. Though the party previously maintained it would back chairman Airlangga Hartarto’s presidential ambitions, a final decision has yet to be made.

The House of Representatives concluded a plenary meeting on Sept. 20 establishing   the omnibus bill on financial sector reform as a parliament-proposed bill. The bill introduces considerable changes from the initial draft proposed by the government in collaboration with the parliament in 2020, some of which are highly contentious.

Young people aged between 17 and 39, who will make up 54 percent of voters in 2024, want a president who can make significant changes and they don’t think 70-year Prabowo Subianto, despite his huge popularity, is their man. In scenarios of two- and three-horse races involving Prabowo, they would instead vote for either Central Java Governor Ganjar Pranowo or Jakarta Governor Anies Baswedan, both 53, shows a survey by the Jakarta-based think tank, the Centre for Strategic and International Studies (CSIS). 

State-owned electricity company PT PLN recently formed four sub-holding companies, two that consolidate all its power generation assets, one that integrates primary energy management and one that develops services beyond electricity. The two power generation companies will share two new business entities in renewable energy, which are likely to be privatized.

President Joko “Jokowi” Widodo has reportedly moved to select the new Indonesian Military (TNI) chief as the current commander, Gen. Andika Perkasa, will reach his retirement age of 58 on Dec. 21 and Jokowi does not seem to consider an extension of Andika’s military service.

Presidential regulation (Perpres) No. 112/2022 on renewable energy, which had been teased since last year, is finally out. However, the reaction to the regulation has been bleak.