Despite its scheduled dissolution in 2025, new revelations have emerged regarding the massive graft case at state-owned insurer PT Jiwasraya. The case, which led to state losses of Rp 16.8 trillion (US$1.06 billion), is among the largest financial scandals in Indonesia’s history. The Attorney General’s Office (AGO) recently named Isa Rachmatarwata, the Finance Ministry’s budget director general, as a suspect in the case. According to the AGO, Isa allegedly played a key role in approving Jiwasraya’s ill-fated JS Saving Plan in 2009 despite knowing that the company was already financially insolvent at the time. 

Another government drive for financial efficiency has been shot down following a public outcry against restrictions on the sales of subsidized household gas introduced on Feb. 1. The new policy quickly gathered heat, with long lines of angry people around the country trying to buy 3-kilogram canisters of LPG and amid harsh criticism going viral on social media.

Just one month after its launch on Jan. 1, the government’s Rp 1.3 trillion (US$79.58 million) Core Tax Administration System (Coretax) is already under fire. Designed to modernize and streamline the country’s tax administration, Coretax has faced criticism for technical malfunctions, complexity and allegations of corruption.

President Prabowo Subianto, a former Army general, has relied heavily on the Indonesian Military (TNI) to accelerate the implementation of his flagship programs. However, he has maintained some distance from the National Police. Despite this, both the TNI and the police wield significant influence in Prabowo’s administration, with several figures from military and police backgrounds securing key cabinet positions and playing crucial roles in power transitions.

The House of Representatives Commission XII overseeing energy has approved a draft government regulation on the National Energy Policy (KEN), which carries a less ambitious decarbonization target. The new policy postpones the 23 percent share of renewable energy in the national energy mix to 2030 from its original target of 2025, while the share of coal is projected to rise from 39.48 percent last year to 40.7 percent in 2030.

Indonesian officials may openly dismiss the impact of the likely huge cuts in aid coming from the United States as minimal, but privately they know they will still affect many programs in health promotion, poverty alleviation and climate justice and a few other sectors that are crucial to the country’s 2030 Sustainable Development Goals (SDG) agenda.

The House of Representatives (DPR) has officially approved the long-awaited third amendment to Law No. 19/2003 governing state-owned enterprises (SOEs). The revised law aims to achieve several key objectives, with two drawing particular attention: The establishment of the investment management agency Daya Anagata Nusantara (Danantara), which has faced repeated delays since its planned launch in November last year, and the creation of a legal framework for the privatization of SOEs. 

The recent capture of Paulus Tannos in Singapore has reignited the nation’s longstanding concerns of failing to catch graft convicts who fled abroad and bring them to justice. The Corruption Eradication Committee (KPK) and other government bodies are now rushing to extradite Paulus under a bilateral treaty agreement between Indonesia and Singapore that took effect last year. If extradited, Paulus would be the first fugitive to be brought back into Indonesia under this newly enacted agreement. 

The House of Representatives agreed to table the revision of the Coal and Mineral Mining Law as an initiative bill on Jan. 23, after a discussion in the Legislation Body (Baleg) which took place until midnight on the last day of the House recess. The revision is considered necessary to accommodate the Constitutional Court ruling that allows entities outside business players, such as higher education institutions and small and medium enterprises (SMEs), to engage in mining business.

When he took over the helm in October, President Prabowo Subianto was widely expected to reposition Indonesia in the ongoing superpower contest closer to the center. Consistent with its non-alignment foreign policy principle, this would mean Indonesia shifting away from China and closer to the United States.

Despite negotiations between the Indonesian government and Apple, no resolution has been reached regarding their investment stalemate. While the United States tech giant has plans to establish an AirTag factory in Batam, Riau Islands, the Indonesian government considers this investment too small compared to its demand for a US$1 billion commitment. As a result, the government is still awaiting Apple’s revised investment proposal before allowing the sale of the iPhone 16 in the country.

With his first 100 days in office completed, President Prabowo Subianto continues to adopt a militaristic approach to governance. Following the November regional elections, Prabowo has mandated that all newly elected regional leaders attend a military boot camp at the National Military Academy in Magelang, Central Java, scheduled for February. The initiative aims to foster greater synchronization between central and local administrations, according to a minister.  

As part of President Prabowo Subianto’s flagship program to achieve energy self-sufficiency, Energy and Mineral Resources Minister Bahlil Lahadalia announced a halt to crude oil and gas exports. Instead, all crude oil will be processed in domestic refineries to boost national fuel production and strengthen energy security, with natural gas prioritized for the domestic industrial downstream industry.

The controversy surrounding the 30.16-kilometer-long fence installed illegally off the coast of Tangerang, Banten, has escalated into a blame game between government, private companies and local authorities. Despite the structure’s massive scale and complex logistics of its construction, no party has taken responsibility for it, raising questions about government transparency and accountability.

The Indonesia Carbon Exchange (IDXCarbon) launched its first international carbon trading platform on Monday, aiming to attract global buyers of carbon credits and revitalize a market that has seen declining activity over the past year. However, attracting international buyers hinges on credible certifications for carbon credits, which are currently issued solely by the Environment Ministry.

President Prabowo Subianto has reaped a high acceptance rate in the first 100 days of his government, giving him the head start that he needs to navigate the country through rough waves in the next five years.

The free nutritious meals (MBG) program, a cornerstone initiative of President Prabowo Subianto’s administration, is potentially leading to a budget swell. The potential increase is driven by the plan to expand the program’s beneficiaries, creating a significant budgetary challenge for the government and a possible widening state budget deficit.

While the results of most opinion surveys have produced public approval ratings of over 80 percent to the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, which will mark its first 100 days on Jan. 28, much of the credit goes to the President, who has been visibly active, whereas the Vice President has been largely dormant and almost invisible.

President Prabowo Subianto has appointed Energy and Mineral Resources Minister Bahlil Lahadalia to lead a task force on acceleration of the downstream industry and energy resilience, which also has authority over marine and forest areas and even to impose sanctions on problematic parties. Some have expressed concern, however, about whether the task force will also prioritize the energy transition.

The Indonesian Democratic Party of Struggle (PDI-P) is still the biggest party in the country, yet its position with respect to President Prabowo Subianto’s administration is either hanging in the balance or remains unclear. However, the ongoing corruption investigation into PDI-P secretary-general Hasto Kristiyanto has driven the party closer to the President, as PDI-P chair Megawati Soekarnoputri signaled during the party’s anniversary celebration on Jan. 10.

Disputes over the 2024 regional election results being heard at the Constitutional Court mostly involve troubling allegations of central government favoritism for certain candidates.

When Indonesia formally became a full member of BRICS, an intergovernmental organization that seeks to change the Western-dominated global financial system, many at home and abroad questioned whether Jakarta was shedding its non-alignment principle. They warned that Indonesia may have to pay a high for being perceived as taking sides in the world increasingly polarized between one bloc led by the United States and another led by China and Russia.

The official launch of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) still has a long way to go. First Deputy Finance Minister Thomas Djiwandono, who is also the nephew of President Prabowo Subianto, stated that the situation is more complex than anticipated, delaying the launch until a clear regulatory framework is established, a process that could take an indefinite amount of time.

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.