Indonesia’s position in the World Competitiveness Ranking (WCR) has dropped significantly, according to the World Competitiveness Yearbook (WCY) 2025, released in June by the International Institute for Management Development (IMD). The annual ranking evaluates 69 economies using global, regional, and national statistics, as well as surveys of corporate executives. The report highlights Indonesia’s sharp decline across key competitiveness indicators, amid ongoing economic headwinds.

“Don’t read too much into it,” said President Prabowo Subianto on his decision to turn down the invitation to meet with the leaders of wealthy Western countries in the Group of Seven (G7) in Canada this month, going instead to meet with Russian President Vladimir Putin.

The free nutritious meal program, intended to meet the nutritional needs of millions of students, faces significant implementation issues. Despite being a government priority, its large scale lacks organizational discipline and clear institutional alignment, leading to uncoordinated execution, especially concerning its alignment with the academic calendar and school vacations.

Concerns over the expanding role of security forces in Indonesia’s civilian institutions have intensified following the establishment of a special task force on state revenue, initiated by National Police Chief Gen. Listyo Sigit Prabowo. The task force was created to combat illegal activities across several high-risk sectors, particularly those involving natural resources—such as illegal fishing, mining, and logging. It is part of a broader government effort to strengthen enforcement and reduce losses in non-tax state revenue (PNBP).

Culture Minister Fadli Zon's recent denial of mass rapes during the May 1998 riots has rightly sparked outrage, highlighting the need for accountability from state officials. The Culture Ministry is currently preparing an "official" Indonesian history book, aiming to rewrite the nation's past in a more "positive" light for Indonesia’s 80th independence anniversary.

The recent appointment of directors and commissioners in Indonesia’s state-owned enterprises (SOEs) saw the assignment of President Prabowo Subianto’s allies, including retired and active-duty officers from the Indonesian Military (TNI) and the Indonesian Police (POLRI), along with fellow alumni of the elite Taruna Nusantara high school. The overt political calculation comes as the authority of the SOEs Ministry is increasingly eclipsed by Daya Anagata Nusantara Investment Management Agency (Danantara), the new sovereign wealth fund launched by Prabowo.

Some 25 deputy ministers in President Prabowo Subianto's bloated cabinet currently hold concurrent positions as commissioners in various state-owned enterprises (SOEs), which appear to be rewards for helping him win the presidential race last year. This practice raises serious concerns about conflicts of interest and the abuse of power, potentially harming the state for the benefit of a select few individuals or groups, in addition to possible legal violations.

Indonesia’s tough laws on companies employing foreigners have been further complicated by alleged embezzlement at a unit of the Manpower Ministry which oversees their administration. An ongoing probe into the scandal, however, may not lead to significant changes as the practice has been taking place for more than a decade.

After years of anticipation, Indonesia and Singapore have officially signed a memorandum of understanding (MoU) for renewable electricity exports. Energy and Mineral Resources Minister Bahlil Lahadalia and Singapore’s Minister for Trade and Industry Tan See Leng on June 13 finalized the agreement, which will see Indonesia supplying up to 3.5 gigawatts of renewable energy to Singapore through 2035. However, in a notable twist, Bahlil announced that state electricity company PLN would not be involved in the deal.

President Prabowo Subianto's much-anticipated intervention has seemingly eased tensions over the disputed Panjang, Lipan, Mangkir Gadang, and Mangkir Ketek islands, which had caused a feud between Aceh and neighboring North Sumatra.

Amid growing concerns over de-industrialization, the House of Representatives (DPR) is accelerating efforts to revitalize the country’s industrial sector through a series of legislative initiatives. This push comes as the country records its second consecutive monthly contraction in the manufacturing Purchasing Managers’ Index (PMI)—from 46.7 in April to a still-weak 47.4 in May—signaling a persistent slowdown in industrial activity.

A forum of retired senior military and police officers has officially submitted a proposal to the House of Representatives to impeach Vice President Gibran Rakabuming Raka. The group, which includes high-profile figures like former vice president Try Sutrisno, argues that Gibran's path to office was marred by undemocratic processes and legal flaws.

The Indonesian government is facing a critical dilemma as it seeks to advance its strategic nickel downstreaming agenda while managing mounting public pressure to preserve the ecological and tourism-rich region of Raja Ampat in Southwest Papua. The controversy over nickel mining in the area has spotlighted tensions between Indonesia’s ambition to lead in the global green supply chain through its nickel downstream industry development and the need to protect one of its most biodiverse and scenic marine ecosystems.

The Prosperous Justice Party (PKS), the country’s largest Islamist party, isn’t going to change course any time soon following changes in its leadership this month, as it has chosen instead to reaffirm its loyalty to the government of President Prabowo Subianto until his term ends in 2029.

Danantara has little choice but to rescue financially bleeding state-owned enterprises (SOEs) by channeling dividends from profitable SOEs, as government funds are no longer permitted for such purposes. The market has responded positively to the planned rescue of near-collapse SOEs, though some have warned Danantara of the potential risk of wasting valuable investment capital.

A Rp 9.9 trillion (US$610 million) corruption scandal involving the procurement of school laptops by the Education, Culture, Research and Technology Ministry from 2019 to 2022, under the leadership of Nadiem Makarim, has captured national attention.

The Prabowo Subianto administration on May 23, 2025, launched a stimulus package aimed at sustaining household consumption and maintaining economic growth momentum amid rising global uncertainties. The package consists of five short-term measures set to be implemented from June to July 2025—one fewer than initially planned after the government scrapped a proposed electricity price discount. While the consumer-focused stimulus was introduced amid ongoing fiscal tightening, it was deemed necessary following a slowdown in household consumption and overall economic growth in the first quarter of 2025.

Indonesia’s new sovereign wealth fund (SWF) Danantara has announced plans to invest up to US$5 billion from the $7.5 billion in dividends it collects from state-owned enterprises (SOEs) this year to fund projects that promise both high financial returns and significant economic impact. However, observers remain skeptical that the fund’s planned corporate actions will deliver the promised performance.

Delivering a speech at the World Government Summit back in February, President Prabowo Subianto proudly claimed his administration’s success in implementing a meritocratic government under his rule. Analysts, however, claim otherwise, as government officials appointed by the President since he took over tend to have notable ties to him without a transparent assessment of their competence.

The Constitutional Court's ruling on May 27, mandating that central and regional governments provide free education at elementary and junior high levels for all public and private schools, aims to promote equality in access to basic education. However, it is feared this decision may place a substantial financial burden on the state budget and have far-reaching implications for the operations of private schools in Indonesia, particularly premium ones.

Concerns over predatory pricing and unfair competition in Indonesia’s e-commerce landscape have resurfaced following the preliminary findings presented during Initial Commission Hearing on May 27, 2025, at the Business Competition Supervisory Commission (KPPU) office. The commisison revealed a notable increase in market concentration after TikTok’s acquisition of Tokopedia, raising the risk of monopolistic practices such as tying, bundling, and the influx of low-cost, illegally imported goods onto the Tokopedia platform.

When President Prabowo Subianto said Indonesia will open diplomatic ties with Israel if it recognizes the state of Palestine, he was paraphrasing a long-held policy in which Jakarta categorically says “no” to any relationship with the Jewish state until Palestinians gain their independent and sovereign state. Same meaning, but he just put it differently.

Although the next presidential election is four years away, politicians across the country have already begun to boost their popularity in hopes of garnering enough support for a possible run. West Java Governor Dedi Mulyadi is among the politicians trying their luck.

A series of corruption and fraud cases have been uncovered at several regional development banks (BPDs), including Bank Jabar dan Banten (BJB), Bank DKI Jakarta, Bank Jatim and Bank Jateng. These cases involve practices such as side streaming, fictitious debtors, hidden debtors and document forgery, resulting in losses amounting to trillions of rupiah. The revelations have raised serious concerns about weak corporate governance in the BPD sector.

The controversy surrounding an alleged fake university diploma belonging to former president Joko "Jokowi" Widodo appears to be nearing resolution, though legal consequences for involved individuals could still result in criminal charges.

The long-awaited 2025-2034 Electricity Procurement Business Plan (RUPTL), launched by the Energy and Mineral Resources (ESDM) Ministry on May 26, 2025, signals a shift in the government’s energy priorities—placing greater emphasis on energy security over the green transition. The new RUPTL marks a departure from the previous 2021-2030 RUPTL, which aimed for no new fossil-based capacity additions by 2030. In contrast, the 2025-2034 plan delays the significant ramp-up of renewable energy capacity to the second half of the decade, indicating a slower pace for Indonesia’s energy transition ambitions.

Every five years, Indonesia holds a multi-party general election typically participated in by around 20 political parties. But every time the nation launches a discourse on how best to finance these parties, someone in the room will quickly shout “corruption”, a reflection of the distrust the public has toward them.