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View all search resultsThe tensions between China and the United States, which have seen the two superpowers at loggerheads in recent years, have eased following a meeting between leaders Xi Jinping and Donald Trump in Beijing on May 14-15. The long-awaited summit provided a temporary pause in the rivalry, injecting a measure of stability into a world currently haunted by wars, trade disputes and a looming global economic crisis triggered by rising oil prices. At the very least, the two leaders were talking rather than fighting.
President Prabowo Subianto recently delivered a striking announcement: his administration plans to gradually place exports of Indonesia’s natural resources under state control to combat alleged under-invoicing by resource exporters. While the proposal could help address persistent under-invoicing, it has also raised concerns among businesses and economists, who warn that it risks becoming a misguided solution that opens the door to rent-seeking and ultimately harms the economy and public welfare.
The Financial Services Authority (OJK) has reported that outstanding loans from financial technology (fintech) lending services, locally known as pindar, reached Rp 101.03 trillion (US$6.1 billion) as of March, underscoring the rapid expansion of Indonesia’s online lending sector and the growing difficulty of containing its risks. Of that amount, the aggregate non-performing loan risk rate, measured by the industry’s TWP90 indicator, which tracks loans overdue by more than 90 days, stood at 4.52 percent in March, significantly higher than the 2.77 percent recorded in March 2025.
The Bantar Gebang landfill in Bekasi, West Java, has once again come under scrutiny following a fatal landslide in March, in a new report that ranked it among the world’s largest methane-emitting landfills in 2025, highlighting the country’s mounting waste crisis. The government has since enacted Presidential Regulation (Perpres) No. 109/2025 to accelerate investment in waste-to-energy (WtE) projects, while state asset fund Danantara has stepped in to coordinate investment and operations nationwide. However, major hurdles remain, including regulatory uncertainty, high investment costs and environmental as well as public concerns.
There is renewed hope for police reform following President Prabowo Subianto’s approval of the police reform committee’s recommendations. Although several points merely preserve the status quo, the recommendations also call for more substantive action, particularly a revision of the 2002 National Police Law.
The rupiah recently plunged to an all-time low of Rp 17,514 per United States dollar, and pressure on the currency may intensify in the second quarter as Indonesia faces a convergence of external and domestic challenges. Maturing government debt, dividend repatriation by foreign investors and soaring oil prices are tightening dollar liquidity, while the latest MSCI Indonesia rebalancing threatens further capital outflows.
Housing is shifting inexorably from a milestone to a mirage in Indonesia. With a national backlog of 15 million houses, housing affordability has turned into a crisis spanning income groups, pushing many families to rent rather than buy. The government’s proposed 40-year mortgage scheme might ease monthly payments but raises a harder question: Does extending debt across most of a person’s productive life solve the housing crisis or merely redefine what desperation looks like?
Indonesia is tightening its grip on food trade. Through Trade Ministerial Regulation No. 11/2026, the government has imposed stricter import controls on a range of agricultural commodities while expanding the authority of the Agriculture Ministry across the food supply chain. Framed as a push toward food self-sufficiency, the policy signals a broader shift toward a more centralized and interventionist food regime, but it also raises concerns that tighter restrictions could drive up food prices before domestic production is ready to fill the gap.
The Indonesian government is looking to dimethyl ether (DME) and compressed natural gas (CNG) as alternatives to import-reliant liquefied petroleum gas (LPG), as it grapples with the impact of the global energy crisis triggered by the United States-Israeli war with Iran. Competing blockades by Iran and the US have shown little sign of easing, pushing up global energy prices and increasing pressure on Indonesia’s state budget, particularly energy subsidies for 3-kilogram LPG cylinders. In response, the government has raised prices for unsubsidized LPG products, sought alternative import sources and accelerated efforts to develop DME and CNG as substitute fuels.
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