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.

The Indonesian Military (TNI) has begun deploying personnel to protect all prosecutor's offices nationwide, a move that has sparked widespread debate due to a lack of clear explanation and a solid legal basis presented to the public. Critics suggest this deployment, favoring the military over the police, although not unprecedented, further showcases the TNI’s intention to flex its muscles beyond its defense realm.

President Prabowo Subianto has officially launched the initial production of the Forel and Terubuk oil and gas fields located in the South Natuna Sea Block B, Riau Islands Province. The block is operated by Medco E&P Natuna Ltd., a subsidiary of PT Medco Energi Internasional. This milestone aligns with the government’s drive toward energy self-sufficiency and is further bolstered by signs of renewed interest from global energy giants Chevron Corporation and TotalEnergies, both of whom had previously exited Indonesia due to shifting oil and gas regulations.

The National Police have launched a massive crackdown on preman (thugs), following a series of high-profile cases of violence and extortion linked to them that embarrassed the country in the eyes of foreign investors. While some of those arrested will face prosecution, it is unlikely that the larger organizations behind them will be dissolved as President Prabowo Subianto has ordered.

President Prabowo Subianto has once again turned to loyalists with military backgrounds to fill key leadership roles in the Finance Ministry’s revenue-generating directorates. His decision to appoint an active military general to head the customs office and an alumnus of military-style Taruna Nusantara (Tarnus) high school to lead the tax office has sparked concerns over the erosion of meritocracy and the growing influence of cronyism in public administration.

In his unending quest to find a political party to call home, former president Joko “Jokowi” Widodo’s name has now been thrown into the mix of potential candidates to contest the upcoming race for the chairmanship of the Indonesian Solidarity Party (PSI). The nascent party has no legislative seats, but it has a fair share of power within President Prabowo Subianto’s government.

Indonesia’s economy grew by just 4.87 percent in the first quarter of 2025, its weakest Q1 performance since 2022, despite a seasonal boost in consumer spending during Ramadan and Idul Fitri. The slower-than-expected growth casts early doubts on President Prabowo Subianto’s ambitious economic targets, including achieving 8 percent annual growth by 2029 and reaching high-income status by 2045.

The Bill & Melinda Gates Foundation has renewed its long-standing partnership with Indonesia following a high-profile visit by Bill Gates to Jakarta in early May. While the Foundation emphasized its commitment to improving public health and healthcare access in the country, one initiative in particular—trials for a novel tuberculosis (TB) vaccine—has attracted growing public skepticism and concern.

Following its failure to secure seats in the House of Representatives during the 2024 general elections, Indonesia’s oldest Islamic political party, the United Development Party (PPP), is now seeking new leadership in hopes of staging a political comeback. In an unprecedented move, the party is even considering figures outside its traditional Nahdlatul Ulama (NU) roots.

West Java Governor Dedi Mulyadi has made headwinds across the nation after launching a controversial initiative to send delinquent youth to military bootcamps as part of a large-scale re-education effort in the region. Since the announcement of his plan early this month, around 270 “misbehaving” students have been sent to Indonesian Military (TNI) barracks in Bandung and Purwakarta.

The Indonesian government plans to cut off refined fuel imports from Singapore —its largest supplier, which currently accounts for approximately 54 percent of Indonesia’s total refined fuel needs. The move reflects a broader strategic shift in Indonesia’s energy import policy, aiming to cut costs and reposition the country within the evolving landscape of global trade, particularly in relation to the United States. However, concerns remain over whether the plan will truly deliver cost savings, given the higher logistics expenses involved, and whether Indonesia’s infrastructure is ready to support imports from more distant suppliers.

When the government completes rewriting the official national history, scheduled for August, do not expect too much change on topics that are too politically sensitive to be written in a more honest and objective way. The more recent history will likely be much trickier to write, and to read, for that matter, as many of the (bad) actors are still alive.

President Prabowo Subianto’s pledge to phase out Indonesia’s outsourcing system amid a wave of layoffs and rising unemployment has sparked mixed reactions. Announced during the May Day celebrations on May 1, 2025, the proposal was framed as a bold step to improve labor conditions. But critics warn it may prove to be an empty promise driven by political aspirations rather than grounded strategy.

Since taking office in October, President Prabowo Subianto has moved quickly to install key allies, many with military backgrounds, into top posts at state-owned enterprises (SOEs). Their appointments span a wide range of sectors from aviation and logistics to mining, prompting concerns over growing cronyism and the erosion of meritocratic principles in corporate governance of SOEs.

The Constitutional Court has taken another step in defense of freedom of expression from the draconian Electronic Information and Transactions (ITE) Law. The court’s decision offers additional assurance of civil liberties following last year’s legislative amendments aimed at addressing the concerns over digital authoritarianism by the government, which was behind the passing of the legislation in the first place.

Since taking office President Prabowo Subianto has focused on uniting Indonesia’s political landscape by forming a broad coalition called Onward Indonesia, which includes nearly every major party. To secure their support, he has granted key roles in his government to coalition allies, ensuring they share influence. Notably, the Golkar Party, led by Energy Minister Bahlil Lahadalia, received eight cabinet positions, with half of those roles filled by ministers who also served under Prabowo’s predecessor, Joko “Jokowi” Widodo.

President Prabowo Subianto joined a massive Labor Day rally in Jakarta on May 1, making some promises that went down well with the crowd. However, his appearance seemed to blunt their expressing more radical demands as well as criticisms against businesses and the government.