President Prabowo Subianto has tasked Finance Minister Sri Mulyani Indrawati with leading the financing strategy for the ambitious Red and White Village Cooperative program, which now targets the creation of 80,000 cooperatives across Indonesia. The initiative carries an estimated cost of Rp 400 trillion (US$23.8 billion) and is expected to draw from a mix of public funding sources, including the state budget (APBN), regional budgets (APBD) and village funds (APBDes), even as its core concept and financial framework remain unclear.

The Indonesian stock market experienced a modest but meaningful recovery this week, buoyed by an announcement from United States President Donald Trump that the implementation of his import tariffs would be delayed for the next 90 days for most countries, excluding China, Mexico and Canada. This pause offered global markets a reprieve from an escalation in trade tensions, and Indonesia was no exception.

Indonesia and Qatar have launched a US$4 billion joint investment fund, co-managed by Indonesia’s Danantara investment agency and the Qatar Investment Authority (QIA), marking a major milestone in President Prabowo Subianto’s Middle East diplomacy. While the agreement signals strong international confidence in Indonesia’s economic prospects, it also raises mounting expectations for Danantara to provide liquidity for domestic projects despite lingering concerns over its financial capacity.

President Prabowo Subianto visited former president and Indonesian Democratic Party of Struggle (PDI-P) chairwoman Megawati Soekarnoputri on the occasion of the Idul Fitri holiday. The meeting on April 7 marked an important rapprochement between the two figures that would define the country’s political dynamics in the future.

The infamous sea barrier off the coast of Tangerang, Banten, which sparked public controversy early this year, has seemingly turned into a blame game between prosecutors and investigators, raising concerns about the country’s law enforcement against such a high-profile case.

Indonesia has always kept a low profile in the Islamic world despite being the country with the largest Muslim population in the world. It has not taken any noteworthy initiative in the Organization of the Islamic Conference (OIC) comprising mostly Muslim-majority countries, which is riveted with geopolitical competition among its members. Indonesia’s main contribution is in making up the number to bolster the collective voice of the pan-Islamic group.

Statistics Indonesia’s (BPS) latest inflation data for March revealed a lower-than-expected headline inflation rate for the month, the lowest March inflation rate among Southeast Asian countries. The year-on-year (yoy) inflation rate was recorded at 1.03 percent, notably lower than prior projections of 1.17 percent and below Bank Indonesia’s target inflation range of between 1.5 and 3.5 percent.

Ragowo ‘’Didit’’ Hediprasetyo Djojohadikusumo, the only son of President Prabowo Subianto and Siti “Titiek” Hediati Hariyadi, has shown he might be a political player to reckon with in the future, much like his father. During Idul Fitri holidays, Didit moved to connect political bigwigs who were not on good terms, a role that could make him a valuable asset for his father.

For foreign journalists, reporting on Indonesia is already difficult enough with so many conditions and restrictions that come with their visa and work permit. Though not as bad as it was during the Soeharto years, Indonesia still counts among the strictest as far as foreign journalists are concerned in comparison with many other countries in the region.

United States President Donald Trump has reignited global trade tensions by imposing reciprocal import tariffs on 180 trading partners, with rates starting at 10 percent and rising significantly for 60 countries, including Indonesia, which now faces a 32 percent tariff, although now paused for three months. While Indonesia benefited modestly from the first US-China trade war in 2018, the dynamics of this second wave of trade retaliation demand a recalibrated strategy to unlock potential economic gains.

Following the “liberation day” tariffs imposed by United States President Donald Trump, countries are scouring for strategies and partnerships to mitigate the economic blow dealt by Washington. A developing country like Indonesia stands at a crossroads of having to prioritize the national interest while still being nice to Uncle Sam.

In response to the sharp decline in tax revenues in early 2025, Finance Minister Sri Mulyani has assembled a special ministerial task force to bolster state revenue by targeting key taxpayers. However, market concerns persist over Indonesia's fiscal discipline, mounting debt obligations and the central bank’s increasing role in absorbing government bonds.

Although no longer in office, former president Joko ‘’Jokowi’’ Widodo appears and intends to play a significant role in national politics, as evident in the frequent encounters between him and his successor, President Prabowo Subianto, and the presence of over a dozen of his “men” in the current cabinet. In the latest gambit to remain relevant in the political theater today and beyond, Jokowi has proposed that the Indonesian Solidarity Party (PSI), which is led by his youngest son Kaesang Pangarep, shift toward a “super open” party in its upcoming congress in May.

Indonesia’s newly established sovereign wealth fund, Daya Anagata Nusantara (Danantara), has had a rocky start in its mission to support national economic growth. Its launch in February triggered a market downturn, highlighting deep public skepticism. On Mar. 24, the government unveiled a high-profile leadership team—featuring former presidents and renowned global financial figures—in an effort to restore public confidence. However, despite the high-profile lineup, the market responded negatively, reflecting persistent doubts about the fund’s credibility and future performance.

Time has passed since the House of Representatives passed the revision of the controversial Indonesian Military (TNI) Law, leading to nationwide civic unrest. Demonstrators have demanded that the government reverse the bill that expanded the military's presence in civilian affairs. Although the resistance has spread widely, militarization in the country continues to grow alongside it.

In a sweeping move that reshaped Indonesia’s financial landscape, the annual shareholders’ meetings (RUPS) of state-owned banks Bank Rakyat Indonesia (BBRI), Bank Mandiri (BMRI), and Bank Negara Indonesia (BBNI) not only approved multi-trillion-rupiah share buyback programs but more importantly ushered in a new era of leadership at the country’s largest state-owned banks. Market reacts positively to this sudden overhaul, with the Jakarta Composite Index (JCI) rebounding slightly on the final trading day before the long holiday. The index closed at 6,510.62 on Mar. 27, marking a 0.59 percent increase from the previous day’s close.

News media outlets and civil society organizations known to be critical of the government of Prabowo Subianto are coming under attack, mostly online, with accusations that they work for foreign interests. American billionaire, investor and philanthropist George Soros has been singled out as the main culprit behind them.

The Indonesian government’s plan to increase royalties on 12 mining commodities, including nickel, copper, gold and coal, has sparked protests from industry players. This policy, introduced during a challenging period for the mining sector, has raised concerns about its potential to discourage investment and reduce overall tax revenue. The mining industry is already struggling with regulatory mandates and fluctuating commodity prices, making the royalty hike an additional burden that could contradict the government’s goal of boosting critical mineral downstream industries.

The government has once again granted PT Freeport Indonesia (PTFI) an exemption to export copper concentrate, an unexpected decision that appears to contradict its own downstreaming policy to transition the country from raw material exports to processed goods. Included in this policy is an export ban on copper concentrate and ores, and Freeport previously received a temporary exemption from this ban while building its copper smelter in Gresik, East Java. The facility was completed in March 2024 however, and many are now questioning whether Freeport’s export privilege is to continue indefinitely.

The Greater Jakarta area cannot seem to catch a break as it recently suffered its worst flood since 2020, in what is dubbed the "five-year flood cycle”. Jakarta Governor Pramono Anung and West Java Governor Dedi Mulyadi, who have only been in office for a month, have been criticized throughout this crisis as their constituents demand answers and adequate action to address the recurring natural disaster striking their regions.

The Indonesian Democratic Party of Struggle (PDI-P) has been wavering for months between joining the coalition government of President Prabowo Subianto or playing the role of opposition, loyal or otherwise, in the House of Representatives. When it holds its congress in April, it is not clear whether it will have made up its mind.

The revision of the Indonesian Military (TNI) Law has not only sparked widespread controversy in public but interestingly also revealed a semblance of a rift within the government and military leadership.

The Indonesia Stock Exchange (IDX) imposed a 30-minute trading halt on Tuesday from 11:19 a.m. to 11:49 a.m.

The government plans to establish 70,000 Red and White village cooperatives at an estimated cost of Rp 350 trillion (US$21.47 billion), with the official launch set for July 12, coinciding with National Cooperatives Day. This initiative aims to strengthen rural economies and tackle key challenges such as extreme poverty by improving access to staple goods. However, concerns have been raised about the project’s feasibility and the potential redundancy it may create alongside existing village-owned enterprises (BUMDes).

The recent scandal over MinyaKita has exposed a crack in the government and structural flaws in the domestic market obligation (DMO) policy. According to economists, the anti-market policy fails to account for volatile crude palm oil (CPO) prices, leaving producers struggling to meet costs and incentivizing violations.

Thomas “Tom” Trikasih Lembong, former trade minister during the first term of former president Joko “Jokowi” Widodo, is standing trial at the Jakarta Corruption Court on charges related to alleged embezzlement of state funds with regard to raw sugar imports. However, given Tom's support for the opposition candidate Anies Baswedan in the 2024 presidential race, suspicions have arisen that the case has been orchestrated to limit the opposition and even to prevent the emergence of a potential challenger in the next election.

Indonesia in 2024 held a series of elections that went off relatively peacefully and saw large voter turnout to give popular legitimacy to those in power today, yet the country saw its ranking in the global democracy index decline last year.