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.

This year appears to be a significant moment for the Indonesian government to test its content moderation mechanisms. As the state expands its authority over digital platforms, a major challenge remains: balancing the need to protect users from harmful and illegal content while ensuring that moderation efforts do not evolve into broader censorship and restrictions on freedom of expression.

The recent announcement on 5.6 percent economic growth came as little surprise after Finance Minister Purbaya Yudhi Sadewa made a similar projection in February. At first glance, the figure appears to validate President Prabowo Subianto’s economic agenda, particularly the free nutritious meal program. Yet behind the stable headline growth, macroeconomic indicators suggest the economy is becoming increasingly dependent on government spending and monetary expansion rather than healthy private sector activity.

With little fanfare, Indonesia’s labor movement has joined President Prabowo Subianto’s big coalition government, giving it an inside track in the corridors of power to fight for its interests. Although some might argue that it has been co-opted to blunt the movement.

President Prabowo Subianto’s push to slash ride-hailing platform commissions has sparked growing concerns over the sustainability of Indonesia’s digital economy, with critics warning that the policy could weaken the very ecosystem it aims to protect.

As the government seeks to shore up fiscal stability amid slowing tax revenue and rising spending pressures, it is turning to controversial new revenue measures, including imposing VAT on toll roads and removing tax exemptions for EV. These policies could slow adoption even as the country pushes electrification to reduce reliance on costly fuel imports.

The Attorney General’s Office (AGO) has detained Samin Tan as a suspect in a graft case implicating several officials in the alleged illegal mining activities conducted by PT Asmin Koalindo Tuhup (PT AKT), of which Samin is a beneficial owner. This is not the first time the coal tycoon has faced legal trouble in a case implicating public servants, and the latest case comes amid President Prabowo Subianto’s broader crackdown on illegal mining. Meanwhile, the legal process also highlights the growing reach of the extrajudicial authority of the Forest Area Enforcement Task Force (Satgas PKH).

The financial independence of the Indonesian Military (TNI) has come under scrutiny following a leaked draft of a government regulation on TNI duties, which appears to open the door for funding from sources outside the state budget. The controversy, however, points to a deeper structural issue: Defense spending in Indonesia has long been deprioritized relative to other national priorities such as infrastructure development, energy subsidies, social assistance and food security.

Domestic workers work long hours and do all kind of chores for low wages and have little or no legal recourse in case of harassment or abuse, as they are completely at the mercy of their employers, or “masters” in this system of modern slavery that persists in Indonesia.

Indonesia’s economy is approaching a dangerous crossroads. While Finance Minister Purbaya Yudhi Sadewa projects robust 5.5 percent growth, he has also warned that the country is in “survival mode” amid escalating global tensions. Beneath the headline optimism, rising energy prices, weakening purchasing power and mounting fiscal and monetary pressures are exposing deeper structural cracks, raising a critical question: Can Indonesia withstand the shock, or is its resilience beginning to wear thin?

President Prabowo Subianto has reshuffled his cabinet for the fifth time just 18 months into his term. While the frequent adjustments may ostensibly reflect an effort to bolster effective governance, they also signal a state of perpetual political recalibration and unsteady organizational cohesion.

Danantara Indonesia has announced plans to consolidate 15 state-owned enterprises (SOEs) and their logistics arms into a single “super” logistics entity in an effort to address longstanding structural issues in Indonesia’s state-owned logistics sector. The consolidation spans multiple segments, from railway distribution to fertilizer distribution, and combines both profitable and loss-making firms under the ambition of building a more integrated and efficient national logistics backbone.

Jusuf Kalla has been among the top trending news in recent weeks, reflecting the enduring relevance of one of Indonesia’s most seasoned statesmen. Kalla, who served as vice president a decade apart in 2004-2009 and 2014-2019, is still highly revered but now aged 83, it is unlikely that he will seek elected office again in 2029.

President Prabowo Subianto’s administration has begun feeling the pressure of the global energy crisis, with state-owned energy company Pertamina raising prices for several unsubsidized fuel and liquefied petroleum gas (LPG) products. The move appears necessary to protect fiscal stability and Pertamina’s operations amid supply disruptions caused by the United States-Israeli war on Iran.

The job creation engine is showing signs of strain. Despite steady economic growth and rising investment, businesses are increasingly reluctant to expand their workforce, raising concerns over the economy’s ability to absorb millions of new job seekers each year. The emerging disconnect between growth and employment is no longer cyclical but structural, pointing to deeper challenges in how investment, labor policy and skills development are aligned.

Indonesia is facing mounting scrutiny over a United States proposal to introduce a notification-based overflight arrangement. As policymakers weigh strategic cooperation against legal consistency and long-standing non-alignment, the decision may ultimately redefine Indonesia’s position within an increasingly contested Indo-Pacific security landscape.

Indonesia’s fiscal position is coming under increasing pressure as global energy prices rise. Early fiscal data already signals strain, with the budget deficit reaching 0.93 percent of gross domestic product - about a third of the 3 percent ceiling - within the first three months of the year. The abrupt reshuffle of key budget officials at the Finance Ministry has further added uncertainty at a time when policy consistency is crucial.

Indonesia’s universal healthcare program is coming under renewed strain as the Health Care and Social Society Agency (BPJS Kesehatan) revealed that claims have begun to outpace premium revenues. With the claim ratio reaching 111.86 percent as of February 2026, the imbalance signals growing pressure on the financial sustainability of the National Health Insurance (JKN) system.

Indonesian popular culture is gaining global traction, with Joko Anwar’s Ghost in the Cell (2026) set to screen in 86 countries and music artists like NIKI, Anggun, Rossa and Voice of Baceprot touring internationally. Yet these successes remain largely driven by individual efforts, leaving the country’s creative industries with a fragmented and under-institutionalized global presence, highlighting the need to position the sector as a strategic industry.

The prolonged United States-Israeli war on Iran, coupled with the effective closure of the Strait of Hormuz, is beginning to ripple through global supply chains, particularly in oil and gas. The conflict is fueling cost-push inflation through rising prices of oil-derived products, especially plastics. Yet in Indonesia, the policy response remains limited, even as the economic impact becomes increasingly visible.

Three government critics have been reported to the police for something they said in public while an online magazine has seen the circulation of an Instagram article restricted, further evidence of Indonesia’s shrinking civic space. These incidents happened not long after the March 12 acid attack against a human rights activist, an attack which the military and police have blamed on members of the Indonesian Military (TNI) intelligence agency. 

President Prabowo Subianto on Apr. 8 instructed the accelerated revocation of hundreds of “questionable” mining business permits (IUPs) within a one-week deadline, a move that raises concerns over rushed implementation. The directive comes in the aftermath of severe flooding in Sumatra in December, widely linked to environmental degradation exacerbated by natural resource extraction. While the policy could curb illegal mining and deforestation, its effectiveness will depend on follow-up actions and careful execution.

It is hard to conceive of a national political landscape without constant maneuvering among political parties, trying to shape its direction. Recent speculation over a potential unification of the NasDem Party and Gerindra Party has brought a recurring question to the forefront: Do parties function as institutional channels of representation, or have they become mere instruments of elite bargaining?

The Indonesia Stock Exchange (IDX) enacted a new provision setting the minimum free float requirement at 15 percent for both listed companies and prospective issuers, doubling the previous threshold of 7.5 percent. This change was made in response to concerns raised by MSCI regarding the low free float levels of Indonesian equities, which led the index to freeze Indonesia’s inclusion in its indices in February and March. These measures are being implemented to demonstrate regulatory compliance ahead of MSCI’s May index 2026 review.

Indonesia’s largest state-owned construction firms – Wijaya Karya (Wika), Pembangunan Perumahan (PP), Adhi Karya (Adhi) and Waskita Karya (Waskita) – have sunk deeper into financial distress, posting a combined loss of around Rp 28 trillion (US$1.7 billion) in 2025. Far from incidental, these losses reflect years of aggressive and often unprofitable investments tied to the infrastructure push under former president Joko “Jokowi” Widodo, turning what was once a growth engine into a mounting financial burden.

of its plan to deliver 3 million homes, the government is partnering with state-owned PT Kereta Api Indonesia (KAI) and PT Astra International to build 1,000 low-cost flats on KAI-owned land in Tanah Abang, Central Jakarta, financed through Astra’s corporate social responsibility (CSR) scheme. While the model appears efficient, it raises a key question: Is this a sustainable solution to Indonesia’s housing shortage, or merely a stopgap that masks deeper structural gaps and potential quid pro quo dynamics?

Over the past two weeks, the government has begun overseeing the implementation of Communications and Digital Ministerial Regulation No. 9/2026. The policy reflects a national push to strengthen protections for children, though concerns have emerged regarding its effectiveness and its potential impact on children’s access to information and freedom of expression.