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View all search resultsThe House of Representatives has approved the Bill on Amendments to Law No. 4/2023 on Financial Sector Development and Strengthening (UU P2SK). According to Finance Minister Purbaya Yudhi Sadewa, the amendments cover 17 key areas, including a provision that would authorize state asset fund Danantara to issue special bonds. The proposed changes have also reignited concerns about a potential erosion of central bank independence.
A single lightning strike on a 275 kV transmission line in Jambi on May 22, 2026, triggered a cascading blackout that left millions across Sumatra without power and reportedly cost lives. The incident exposed a critical weakness in Indonesia’s transmission network, highlighting that grid resilience may be just as important as generation capacity as the country pursues industrialization, digitalization and renewable energy deployment.
The administration of President Prabowo Subianto has issued Presidential Regulation (Perpres) No. 26/2026, which expands the role of public service agencies (BLU) in energy imports, blurring the traditional boundaries between government agencies, state-owned enterprises (SOEs) and private sector players. While the new regulation appears intended to strengthen Indonesia’s energy security amid growing global uncertainties, it could create overlapping responsibilities, increase operational risks and expose the country to greater geopolitical pressures.
Business groups in Indonesia are warning that regulatory uncertainty surrounding labor policies is accelerating premature deindustrialization, a phenomenon in which developing economies experience a decline in manufacturing's share of gross domestic product at a much lower income level than historically observed in advanced economies.
Indonesia’s financial markets have experienced significant turbulence in recent weeks, with the rupiah depreciating beyond Rp 18,000 per US dollar, the Indonesian Stock Exchange (IDX) Composite index falling by nearly half to below 6,000 points, 10-year government bond yields have climbed to 7.3 percent and the yield curve has flattened considerably amid substantial capital outflows. Together, these indicators suggest that investors are losing confidence in the government’s economic management. Yet the government has shown little indication of adjusting its policy direction.
Joko “Jokowi” Widodo’s "safari politik" (campaign tour) since June marks a significant turning point in Indonesia’s post-presidential politics. Although publicly framed as a series of visits to fulfil invitations and meet citizens, the former presidents tour reflects a calculated effort to sustain influence, reorganize political alliances and shape the country’s political future toward the 2029 elections. Rather than a purely symbolic return, the "safari politik" represents a strategic repositioning in a political landscape now led by President Prabowo Subianto.
President Prabowo Subianto officially dismissed National Nutrition Agency (BGN) head Dadan Hindayana and his two deputies through a surprise announcement by the State Secretariat early last week, marking one of the most abrupt leadership changes of his administration. The move was soon followed by the Attorney General's Office (AGO) naming all three officials as corruption suspects in the program.
The more than 50 overseas trips President Prabowo Subianto has taken during less than two years in office have increasingly drawn public skepticism. Critics question whether the frequency of these trips aligns with genuine diplomatic priorities and the administration's stated commitment to fiscal efficiency. Thus far, the government's defense has been less than satisfying.
As geopolitical tensions expose Indonesia’s dependence on imported fuel, the government is accelerating its B50 biodiesel mandate to strengthen energy security. Yet the policy raises questions about feedstock availability, infrastructure readiness, fiscal costs and its potential impact on the palm oil industry, one of the country’s largest sources of export earnings.
Securing the release of nine Indonesians, detained by the Israel Defense Forces (IDF) in international waters as part of a humanitarian aid flotilla to Gaza, was no small diplomatic achievement for Indonesia, which has no formal ties to the Jewish state. Yet this accomplishment was not fully appreciated at home, where critics dismissed the government’s efforts as timid and pointed to President Prabowo Subianto’s silence throughout the episode.
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