The first phase of Nusantara Capital City (IKN) development has officially concluded, with the IKN Authority confirming it will receive Rp 48.8 trillion (US$3 billion) from the state budget to continue the project’s second phase through 2028. Although President Prabowo Subianto initially pledged to begin working from IKN starting August 2028, uncertainty looms, as he has yet to demonstrate genuine interest in relocating the nation’s capital.

Nine months into his job, Vice President Gibran Rakabuming Raka has finally been given a specific assignment: Oversee the acceleration of development in Papua, Indonesia’s easternmost region that is both resource-rich and among the most impoverished.

The Corruption Eradication Commission (KPK) has uncovered a large-scale corruption case involving Bank Rakyat Indonesia (BRI), one of the country’s largest state-owned lenders. The scandal, estimated to involve hundreds of billions of rupiah, pertains to the procurement of electronic data capture (EDC) machines and implicates several former BRI executives. The case not only raises concerns about accountability within state-owned enterprises (SOEs) but also threatens to erode public trust in the financial sector, where SOEs play a dominant role.

After five months of intense speculation, Muhammad Riza Chalid, dubbed the “godfather of oil”, has been named as a suspect by the Attorney General’s Office (AGO) for his alleged role in a colossal Rp 285 trillion (US$17.4 billion) graft case. The scandal implicates subsidiaries of state-owned oil and gas holding company Pertamina as well as third-party contractors.

Indonesia’s economy is clearly losing momentum, with key indicators pointing to a broader slowdown. Economic growth dropped to 4.87 percent in the first half of 2025, down from 5.08 percent in the same period last year. In response, the government has introduced a series of stimulus packages to boost household spending but the measures may fall short, as both investment and business activity continue to weaken.

Two major Indonesian securities firms, NH Korindo Sekuritas and Trimegah Sekuritas, fell victim to cyberattacks in May. NH Korindo managed to fend off the attack before any funds were withdrawn, limiting the damage to operational disruptions. Trimegah, however, wasn’t as fortunate. Losing an estimate of Rp 200 billion (US$12.3 million) from the breach.

An Indonesian national, identified by the initials AP, was arrested in Myanmar for illegally entering the country and engaging with the Karen National Union (KNU), an armed group designated as a banned organization by local authorities.

When a mob rampaged through Maria Veronica Nina’s villa in Sukabumi, West Java, she would have had every right to feel vengeful for the hate crime committed against her property.

State-owned palm oil producer PT Agrinas Palma Nusantara, established just last March through a spin-off from a state-owned construction firm to refocus on the agriculture sector, has unexpectedly restructured its board of directors (BoD) and board of commissioners (BoC). The leadership shake-up comes as the company carries a mandate to manage illegal palm oil plantations seized by the government. The confiscated land, which spans hundreds of thousands of hectares (ha), was taken from companies found to have violated laws such as the Forestry Law, including several prominent palm oil firms also active in downstream production.

President Prabowo Subianto’s choice of a senior bureaucrat to be Indonesia’s new ambassador to the United States is somewhat anticlimactic, casting doubts on whether he has picked the right person for the right job, and at the right time.

The Trade Ministry has rolled out a wide-ranging regulatory reform package aimed at easing import restrictions and cutting red tape, in a bid to revitalize the manufacturing sector, respond to global trade pressures amid United States (US)’ tariff hikes, and bolster Indonesia’s competitiveness as it eyes membership in the Organisation for Economic Co-operation and Development (OECD).

Indonesia is banking on a suite of large-scale electric vehicle (EV) battery projects, Dragon, Titan and Omega, to reverse the country’s manufacturing slump, slash fuel imports and secure a strategic place in the global EV supply chain. At the heart of this national push is the US$5.9 billion Dragon project, recently inaugurated by President Prabowo Subianto, which aims to build an end-to-end nickel-based battery ecosystem anchored by partnerships with Chinese EV battery giant Contemporary Amperex Technology Co. Limited (CATL).

Holding general elections for a country the size of Indonesia is always a huge and complicated undertaking. The country is constantly struggling to find the most cost-efficient way of running multiple elections at the national and regional levels, but “effective” is never a goal as long as the electoral laws are drawn up by big political parties more interested in protecting their interests than ensuring people’s democratic rights.

The Attorney General’s Office (AGO) has struck a significant agreement with major cellular service providers in Indonesia, granting it access to users’ private information for law enforcement purposes. While the reasons for the deal look convincing, the development raises serious concerns about potential violations of fundamental citizen rights and may conflict with a Constitutional Court ruling regarding surveillance and wiretapping.

Public Housing and Settlements Minister Maruarar “Ara” Sirait took many by surprise when he announced that Daya Anagata Nusantara (Danantara) Investment Management Agency would finance one of President Prabowo Subianto’s flagship campaign promises: the construction of 3 million subsidized homes. Danantara has pledged a loan of Rp 8 trillion (US$ 138 million) for the project. With this move, earlier plans to finance the program through foreign loans were effectively shelved.

North Sumatra Governor Bobby Nasution consistently attracts negative press. The 33-year-old Gerindra politician and son-in-law of former president Joko "Jokowi" Widodo may soon be questioned by the Corruption Eradication Commission (KPK) after his close aide was arrested in a recent graft scandal in the province.

Sovereign wealth fund Danantara is embarking on an ambitious overhaul of state-owned enterprises (SOEs), aiming to consolidate 844 SOEs and their subsidiaries into around 200 entities. As the fund moves forward with its major consolidation plan, questions about investment returns, governance and long-term strategy remain front and center.

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.