To mitigate the potential impacts of the new value-added tax (VAT) rate of 12 percent beginning in January 2025, the government has decided to exempt 15 commodities from the new VAT rate or waive them entirely from VAT. This measure aims to protect consumers, particularly people from low-income households, so they do not bear the full burden of the tax hike on essential goods.

The yearslong manhunt for graft suspect Harun Masiku has taken a new twist as the Corruption Eradication Commission (KPK), under new leadership, grilled former law and human rights minister Yasonna Laoly in connection with the case, which is believed to implicate senior members of the Indonesian Democratic Party of Struggle (PDI-P).

The Corruption Eradication Commission (KPK) raided Bank Indonesia’s (BI) office on Monday over allegations of misappropriation of Corporate Social Responsibility (CSR) funds. The investigation included a search of the office of BI Governor Perry Warjiyo, marking a significant blow to the central bank's long-standing reputation for integrity and professionalism, which had largely remained untarnished during Perry’s tenure.

President Prabowo Subianto has again openly criticized the electoral process in Indonesia as being too costly and is now proposing, for a start, that the country do away with direct elections for heads of regional governments. This is from a man who won the democratic presidential election in February after three attempts.

The government has announced a plan to reduce domestic airfares 10 percent during the 2024-2025 year-end holiday. The policy, developed in collaboration with various state entities, aims to address the negative impact of high airfares on the tourist industry and capitalize on increased demand over the peak travel season.

President Prabowo Subianto faced the first test of his commitment to freedom of religion last week, when police banned a national gathering for the followers of Ahmadiyyah, a sect that Indonesia’s majority Sunni community refuse to recognize as Islam.

The House of Representatives recently formed the Intelligence Oversight Team under the coordination of the deputy speaker of the House, which includes the leaders of the House Commission I and representatives of the House factions. However, the team's effectiveness in holding the intelligence community accountable to the public interest remains in question.

The Constitutional Court recently confirmed that the Corruption Eradication Commission (KPK) has the authority to investigate alleged acts of corruption involving or implicating the Indonesian Military (TNI). What should have been a breakthrough for the antigraft body has instead raised questions over whether the KPK, as it stands today, will be able to fully leverage this investigatory power.

Andi Syamsuddin Arsyad or Haji Isam, an infamous businessman from South Kalimantan, has solidified his influence on President Prabowo Subianto’s administration with his huge food estate project in Merauke, South Papua, which President Prabowo visited in early November. And most recently, Prabowo brought in Haji Isam during his meeting with Japanese investors at the State Palace in Jakarta regarding a reforestation project.

Questions about ties between former president Joko “Jokowi” Widodo and the Indonesian Democratic Party of Struggle (PDI-P) have finally found an answer. The PDI-P has formally expelled Jokowi and his family, marking a significant turning point for the party, which helped Jokowi catapult to the presidency twice in 2014 and 2019.

The inauguration of Maj. Gen. Ariyo Windutomo as head of the Presidential Secretariat in place of Heru Budi Hartono on Nov. 29 has only reignited concerns about the so-called militarization of the government, which began with the appointment of ministers, deputy ministers and heads of government agencies with military backgrounds by President Prabowo Subianto, himself a retired Army general.

As Indonesia reflects on the administration of the unprecedented simultaneous nationwide regional head elections on Nov.27, many areas of improvement have come to light. With voter turnout rates dipping, exorbitant election costs and the frequency of uncontested races, reforms are needed to safeguard the future of the country’s electoral system.

State-owned enterprises (SOEs) in the food sector may soon come under the purview of the Agriculture Ministry. The proposal, initiated by Agriculture Minister Andi Amran, aims to streamline state efforts toward achieving food self-sufficiency in Indonesia, a key priority of the ministry. However, the plan has raised concerns about potential overlaps in responsibilities and interests between the Agriculture and SOEs Ministries under President Prabowo Subianto’s administration.

The National Police have come under public scrutiny yet again after the Indonesian Democratic Party of Struggle (PDI-P) accused the institution of abusing its power to sway election results in some of the party’s strongholds in the recent regional head elections.

President Prabowo Subianto’s flagship free nutritious meal program has undergone a significant budget cut per portion, reducing the allocation price per child and per pregnant woman from Rp 15,000 (about US$1) to Rp 10,000 per pack to create room for other costs or to cover more beneficiaries as the total budget remains the same at Rp 71 trillion for 2025. 

The results of the Nov. 27 regional elections have further entrenched the position of former president Joko “Jokowi” Widodo in national politics for the next five years and beyond. This bodes well for his main political agenda, which is to prepare his eldest son Gibran Rakabuming Raka for the 2029 presidential race.

State-owned electricity giant PT PLN has four new commissioners, mostly close allies of President Prabowo Subianto. The change is much anticipated following similar changes in the boards of state-owned oil and gas giant Pertamina, where Prabowo’s allies fill key positions. Board replacement at the energy state-owned enterprises (SOEs) with politicians indicates an effort to pay back Prabowo’s allies and raises further questions about his ambitious target of energy self-sufficiency.

The House of Representatives has approved the National Legislation Program (Prolegnas) for 2025, during which the lawmakers will deliberate 41 priority bills. The list clearly represents a compromise between the political elites, rather than public aspirations, such as the mounting demand for an asset-forfeiture law.

President Prabowo Subianto’s decision to let a Philippine woman, who has been convicted for drug trafficking, to serve the remainder of her sentence in her home country under a transfer of prisoner arrangement has opened a Pandora’s box. She was sentenced by an Indonesian court to death, but the Philippines has long abolished capital punishment.

The newly elected leaders of the Corruption Eradication Commission (KPK) have sparked little public enthusiasm, reflecting deepening cynicism about their ability to combat entrenched corruption. Once a symbol of integrity, the KPK is now viewed by many as a political tool of the rulers.

The Indonesian government has decided to delay the annual increase in provincial minimum wage (UMP) rates, raising questions about its implications for workers, businesses, and the political landscape. Initially scheduled for announcement by Nov. 21, 2024, the wage adjustment will now wait until after the country’s regional elections. This decision follows a Constitutional Court (MK) ruling and ongoing dispute over minimum wage regulations.

With the final results of the country’s simultaneous regional elections not expected until Dec. 16, the quick count data offers a glimpse into the shifting dynamics of power, particularly between the governing coalition of President Prabowo Subianto, including former president Joko “Jokowi” Widodo, and the Indonesian Democratic Party of Struggle (PDI-P).

President Prabowo Subianto marked his first overseas trip as Indonesia's leader with a high-profile debut at two major multilateral forums, achieving notable milestones for the country’s foreign policy agenda. Following his bilateral visits to China and the United States, Prabowo attended the Asia-Pacific Economic Cooperation (APEC) Summit in Lima, Peru, from Nov. 15 to 16, and the Group of 20 Summit in Rio de Janeiro, Brazil, from Monday to Tuesday. These summits provided a platform for the newly inaugurated President to showcase his administration’s vision for Indonesia’s global role.

Amid the campaign session in the runup to the regional head elections on Nov. 27 and the final phase of capital city relocation from Jakarta to the future Capital City of Nusantara (IKN), the government and the House of Representatives agreed to revise the Jakarta Special Region (DKJ) Law. The amendment is the first legislation the current House has produced since it began its five-year term on Oct. 1.

Three women will compete for the governorship of East Java, the country’s second-most populous province and a stronghold of the country’s largest and most influential Islamic organization, Nahdlatul Ulama (NU). Unlike a few other regional head elections marred by power struggles between political elites, the East Java gubernatorial race has shaped up to be a riveting contest between candidates equally qualified for the province’s top job.

The South Jakarta District Court has dealt the Corruption Eradication Commission (KPK) a major blow after granting a pretrial motion filed by South Kalimantan Governor Sahbirin Noor, who claimed the KPK’s move to name him a suspect was illegitimate.

Indonesia received a significant boost of 1.2 billion euros  (US$1.14 billion) in green financing from a German bank, Kreditanstalt für Wiederaufbau (KfW), at the United Nations Climate Change Conference’s 29th meeting (COP29) in Baku, Azerbaijan. This funding has unlocked a gateway for President Prabowo Subianto’s energy vision amid environmentalists’ concerns about the President’s future commitment to addressing climate change.

Prabowo Subianto’s first foreign sojourn as president, which took him to China and the United States in quick succession this month, shows how confident he is in running Indonesia’s foreign policy amid escalating tension between the two big powers.

President Prabowo Subianto’s decision to continue with the selection of 10 candidates for the Corruption Eradication Commission (KPK) leadership posts nominated in the final weeks of former president Joko “Jokowi” Widodo’s term has sparked concerns over the legitimacy of the commission’s future leaders.

The competition is heating up ahead of the regional head elections, especially in provinces where candidates supported by President Prabowo Subianto’s Onward Indonesia Coalition (KIM) are facing off against candidates of the Indonesian Democratic Party of Struggle (PDI-P). However, Prabowo’s open support for KIM-backed candidates has called into question the neutrality expected of the head of state.