Timor-Leste formally joined the Association of Southeast Asian Nations (ASEAN) during the group's summit in Kuala Lumpur, after a long wait, thanks in no small measure to the tireless support of Indonesia, which once brutally occupied the tiny territory. 

The proposal to establish a family office, a private investment entity, from National Economic Council (DEN) head Luhut Binsar Pandjaitan has recently returned to the public spotlight after Finance Minister Purbaya Yudhi Sadewa rejected the use of the state budget (APBN) to fund the venture. Purbaya said the family office project must be developed entirely through DEN's own resources, emphasizing that the Finance Ministry had no role in designing or planning the project. Luhut responded by pointing to a misperception regarding the proposal, clarifying that the planned project had nothing to do with the state budget. Details of the initiative remain vague, however, so it is uncertain how the new entity will be structured and financed.

The House of Representatives' recess budget has nearly doubled this year, despite mass protests over what the public views as lawmakers' excessive housing allowance amid economic hardships and ongoing calls for budget efficiency. Such budgetary controversies will likely persist, given Indonesia's long-standing tradition of poor accountability in public spending.

The appointment of Gen. (ret) Glenny H. Kairupan as President Director and CEO of Indonesia's flag carrier Garuda Indonesia has stirred public debate about whether friendship can lift a troubled airline. Glenny, who took part in combat missions with President Prabowo Subianto, replaces another of Prabowo's close associates, Wamildan Tsani.

Defense Minister Sjafrie Sjamsoeddin has confirmed that Chinese J-10 fighter jets are set to soar across Indonesia's airspace, ending months of speculation. While this procurement follows Indonesia's recent acquisitions of Rafale jets from France and fighter aircraft from Turkey, the Beijing deal has drawn particular attention for its speed and opaque timing.

Several private companies, including Garibaldi "Boy" Thohir's Adaro Energy, have been dragged into the spotlight after prosecutors charged PT Pertamina and its subsidiary, PT Pertamina Patra Niaga (PPN), with corruption that allegedly cost the state trillions of rupiah. The case centers on the underpricing of unsubsidized Solar and Biosolar, Pertamina's diesel and biodiesel fuel brands, sold to numerous private sector buyers. The indictment, which could result in state losses of up to hundreds of trillions of rupiah, has sparked a heated debate among experts and civil society. Some caution against the potential criminalization of private sector buyers, while others insist on pursuing all possible corporate links to the corruption scheme.

President Prabowo Subianto spent much of the first year since his October 2024 inauguration trying to fulfill his campaign promises, but he has also been quietly consolidating power over his political detractors, with a little help from his Army friends.

Cooperatives and small and medium enterprises (SMEs) are now eligible to manage mining concessions over significant land areas across the country following the issuance of a revision to the Government Regulation (PP) No. 39/2025 on implementation of mineral and coal mining operations. While the government has presented this policy to boost local economic participation, particularly among communities near existing mines, it has also raised concerns over the limited technical capacity of co-ops and SMEs and the risk that they could be used as fronts for large corporations.

Finance Minister Purbaya Yudhi Sadewa is facing growing backlash from regional governments after the central government decided to slash local transfers in the 2026 state budget to their lowest level since 2016. Purbaya insists the move is crucial to safeguard fiscal stability amid mounting budgetary pressure. Yet, his rationale raises a critical question: Can regional governments withstand the burden of this fiscal tightening?

The governance and controversial politics surrounding Islamic academic institutions came to a head in recent weeks after a three-story pesantren (Islamic boarding school) in Sidoarjo, East Java, collapsed last month, killing 67 students and injuring over 170 others.

With Indonesia’s national soccer team failing to qualify for the 2026 FIFA World Cup, Erick Thohir faces intense pressure as chairman of the Soccer Association of Indonesia (PSSI). The setback may also threaten his role as Youth and Sports Minister in President Prabowo Subianto’s cabinet, a position now seen as vulnerable given his lack of formal political party backing and the apparent move to expel former president Joko “Jokowi” Widodo’s allies from the government.

Faith in the implementation of President Prabowo Subianto’s flagship “3 million homes” program has waned after it was recently excluded from the list of National Strategic Projects (PSN) as outlined in the Coordinating Economy Minister’s Regulation No. 16/2025. The setback comes following the annulment of the 2016 Public Housing Savings (Tapera) Law, which was expected to serve as a cornerstone of the government’s affordable housing drive by providing a sustainable funding source for the housing finance liquidity facility (FLPP), which provides low-interest mortgages for low-income households (MBR) under a subsidy scheme.

President Prabowo Subianto may have raised Indonesia’s diplomatic profile in the Middle East, but going by public sentiments, opening diplomatic ties with Israel is not in the cards. The war in Gaza has made that prospect even more remote.

The government has walked back its previous plan to raise the tobacco excise tax, a policy that had been a central pillar of its earlier crackdown on illegal cigarettes. Under the former administration, the approach was largely punitive, marked by annual excise hikes, aggressive “Gempur Rokok Ilegal” raids on small retailers, and stiff penalties for anyone caught selling untaxed products. In a major policy shift, Finance Minister Purbaya Yudhi Sadewa has now announced that the government will instead offer amnesty to illegal cigarette producers, aiming to incentivize them to register, fulfill their tax obligations, and transition into the formal, regulated market.

The newly appointed Finance Minister Purbaya Yudhi Sadewa has wasted no time asserting his fiscal philosophy within just a month in office. One of his first major decisions, rejecting the call for a third round of tax amnesty, has sparked debate in policy circles, pitting the need for short-term revenue against the imperative of restoring long-term credibility to Indonesia’s tax system.

Indonesia has again amended Law No. 1/2003 on State-Owned Enterprises (SOEs), formally transforming the SOEs Ministry into the SOEs Regulatory Agency (BP BUMN). The amendment marks a significant shift in governance, transferring the ministry’s operational authority to the Daya Anagata Nusantara (Danantara) Investment Management Agency, while BP BUMN will retain a purely regulatory role. In effect, the change consolidates Danantara’s control over the management of SOEs, as its Chief Operating Officer, Dony Oskaria, has been appointed to concurrently lead BP BUMN, aligning the two institutions’ operational and oversight functions.

When the Indonesian Solidarity Party (PSI) chairman, Kaesang Pangarep, announced the party's new leadership lineup for the 2025-2030 period, a mysterious figure designated only as "Mr. J" was listed as the chief patron, with the full name to be revealed soon. PSI secretary general and Forestry Minister Raja Juli Antoni explained that the name was being kept secret under Kaesang's instruction.

Celebrating its 80th anniversary, the Indonesian Military (TNI) held a massive parade in Jakarta on Oct. 5, but amid growing concerns about the military intruding more and more into the political arena, the display of power may have sent the wrong message to some quarters about Indonesia’s democracy, already in peril.

President Prabowo Subianto has recently implemented another round of changes to his cabinet, significantly expanding the executive branch by bringing in numerous figures, many of whom are affiliated with his Gerindra Party. This political maneuver has resulted in an increasingly swelling government structure, raising serious concerns about the potential for overlapping authority and administrative ineffectiveness.

Indonesia will need to accelerate both revenue collection and government spending in the final months of this year, after realizing just over half of the 2025 outlook by the end of August. The Finance Ministry reported that state revenue reached Rp 1.64 quadrillion (US$98.61 billion) as of Aug. 31, or 57.2 percent of the outlook, and realized state spending of Rp 1.96 quadrillion (55.6 percent). This left the 2025 state budget with a deficit of Rp 321.6 trillion, equal to 1.35 percent of gross domestic product (GDP).

The government’s ambition to secure long-term affordable housing funds through the public housing savings program, Tapera, has hit a major setback. The Constitutional Court recently annulled the 2016 Tapera Law in its entirety, declaring that the legislation must be revised within two years or risk being void altogether. The ruling has thrown the program, which was scheduled to be fully implemented in 2027, into limbo and further complicated the government’s already ambitious goal of building three million houses annually.

Public demand for police reform necessitates the replacement of National Police chief Gen. Listyo Sigit Prabowo, who bears ultimate responsibility for the recent wave of bloody demonstrations. Otherwise, it would be yet another example of institutional failure, with the police under Listyo’s leadership remaining entangled in serious abuses of power, a lack of accountability and persistent public distrust.

Upon returning from his weeklong diplomatic trip, President Prabowo Subianto was forced to quickly shift his focus from international affairs to a domestic crisis.

The planned exit of British energy company Shell exit from the gas station business in Indonesia, which is set to wrap up in 2026, has been marred by a troubled send-off. It comes at a time when private fuel retailers have struggled with national gasoline shortages throughout September, and Shell has been no exception to the supply crunch.

President Prabowo Subianto gave a passionate speech at the United Nations General Assembly (UNGA) on Sept. 23 that impressed many people, paving the way for the Indonesian leader to set himself as an international leader ready to play his part in promoting global peace and order.

Bank Indonesia (BI) cut its benchmark interest rate for the fifth time this year, lowering it to 4.75 percent just a day before the United States Federal Reserve (the Fed) announcement. The move reflected BI’s bet that the US monetary authority would also ease its policy. A day later, the Fed indeed cut the federal funds rate (FFR) for the first time in 2025. Both central banks’ decisions were driven by concerns over slowing economic growth but also sparking debate on government influence in central bank decisions.

When President Prabowo Subianto deployed the Indonesian Military (TNI) to the streets to restore order during last month’s nationwide protests, it was merely the latest example of a pattern the country has witnessed since he took office in October last year.