President Prabowo Subianto’s flagship free nutritious meals program was launched on Jan. 6 as a cornerstone initiative to combat malnutrition and stunting in children. Although the program has already reached hundreds of thousands across 26 provinces, the rollout has sparked concerns over its persistent funding challenges, inadequate governance and long-term sustainability.

Bank Indonesia (BI) planned to increase the liquidity in the economy by buying government bonds (SBN) from the secondary market amounting to Rp 150 trillion ($ 9.25 billion) in 2025 through a debt switching mechanism. This expansive monetary policy aims to stabilize the rupiah after sequential depreciation against the United States dollar in December 2024. However, the risk of surging inflation may harm BI’s independence and credibility.

The Indonesian government is set to increase the palm oil-based content share in biodiesel from 35 percent (B35) to 40 percent (B40) starting in 2025. This move aligns with the nation’s renewable energy and carbon reduction targets while advancing the downstream development of its palm oil industry. However, the policy has sparked concerns over the environmental impact of palm oil cultivation and its potential to drive up cooking oil prices.

The government issued the National Electricity General Plans (RUKN) 2024 – 2060 to align with the country’s net-zero emissions (NZE) target on Nov. 29, 2024, without consulting the House of Representatives. On the same day, the Constitutional Court ruled in favor of a lawsuit challenging the omnibus law on Job Creation, requiring the government to consult with the House in drafting the RUKN.

The widely accepted perception of former president Joko "Jokowi" Widodo as a clean figure has begun to crumble after the Organized Crime and Corruption Reporting Project (OCCRP) nominated him as the 2024 Most Corrupt Person of the Year. Jokowi joined other world leaders known for their corruption track records in the “hall of shame”, with the humiliating title going to the deposed Syrian leader Bashar al-Assad.

Just a few months into his term, President Prabowo Subianto faced a test of his commitment to integrity after he proposed a form of amnesty for corrupt individuals and to keep their crimes a secret as long as they returned their ill-gotten wealth to the state. After mounting criticism, however, he displayed his intention to assertively deal with graft, saying those found guilty of stealing state money should serve 50 years in prison.

The Constitutional Court’s decision to remove the electoral threshold to allow any political party to nominate presidential and vice-presidential candidates is not quite the milestone in the country’s democratic journey that many activists are making it out to be. The next election is not until 2029, and a lot of things can happen before then that will make their elation in welcoming the Jan. 2 court ruling appear overboard, if not premature.

The full-blown graft investigation launched against Indonesian Democratic Party of Struggle (PDI-P) secretary-general Hasto Kristiyanto has intensified the ongoing feud between former president Joko “Jokowi” Widodo and the party. Named a suspect in a graft case tied to fugitive Harun Masiku, Hasto’s legal troubles have ignited allegations of political retaliation and discriminatory prosecution.

The country’s two smallest mobile operator companies PT XL Axiata Tbk and PT Smartfren Telecom officially merged into PT XLSmart Telecom Sejahtera Tbk, consolidating the country’s mobile operator industry to three players. The Rp 104 trillion (US$6.5 billion) merger was seen as inevitable as the telecom industry is saturated. As the industry becomes more concentrated, the risk of oligopoly also emerges.

The Prabowo Subianto administration has announced an ambitious economic stimulus package for 2025, aimed at softening the blow of a planned increase in the value-added tax (VAT) rate. The measures target low- and middle-income Indonesians, as well as micro, small, and medium enterprises (MSMEs) and labor-intensive industries, in what analysts view as a populist move to mitigate potential backlash against the tax hike.

Relocating Indonesia’s capital from Jakarta to Nusantara in East Kalimantan remains a highly ambitious but increasingly uncertain project. Although President Prabowo Subianto expressed his commitment to continuing the project initiated by his predecessor Joko “Jokowi” Widodo, it may be put on the back burner in favor of more pressing projects, such as his flagship free nutritious meals and food estate programs.

Ridwan had initially announced his intention to dispute the election results in a bid to force a runoff election,

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.