The massive student demonstrations that erupted in several cities in Indonesia last week were the most serious anti-government protests since President Prabowo Subianto took charge in October. Clearly, all is not well in spite of his high approval ratings.

President Prabowo Subianto has vowed to crack down on mafia-like practices in the oil and gas industry, after an ongoing probe named nine executives as suspects in a case on fraudulent crude oil and fuel trading, estimated to have incurred state losses of Rp 193.7 trillion (US$12 billion) between 2018 and 2023. The outcome of this case will be a test of Prabowo’s commitment to fighting corruption in the energy sector, especially as to whether the investigation extends to high-profile figures who might have profited from the illegal activity.

The government is enhancing labor protections by introducing new regulations that guarantee holiday bonuses (THR) for ride-hailing drivers. However, due to the lack of a clear legal classification of these drivers as employees, their entitlement to these benefits remains uncertain. In parallel, President Prabowo Subianto has enacted a regulation ensuring that laid-off workers receive 60 percent of their last salary for six months.

President Prabowo Subianto is pushing for budget efficiency, which is expected to save around Rp 300 trillion (US$18.36 billion) and could even reach Rp 750 trillion, to create enough fiscal space to fund his signature programs such as the free nutritious meals program and the new Danantara sovereign wealth fund. On the other hand, this austerity measure is feared to undermine the morale of government employees, who will see their pay drop significantly.

The government has extended the mandatory lock-up period for export earnings from natural resource commodities (DHE) from three months to one year. This policy aims to bolster Indonesia’s foreign exchange (forex) liquidity amid ongoing economic uncertainties. However, the move has faced strong resistance from businesses, which argue that it significantly increases their financial burden. The extended lock-up period is set to take effect around March 1 with the issuance of Government Regulation (PP) No. 8/2025.

Like most countries around the world, Indonesia is struggling to contain the problems and dangers stemming from rampant growth in internet use. When it comes to tackling tech giants with platforms that allow the proliferation of harmful content however, the government is moving cautiously, counting on their help instead of tackling them head-on.

The House of Representatives passed on Feb. 18 the fourth amendment to Law No. 4/2009 on mineral and coal mining (UU Minerba) following a hasty deliberation during its recess to expand eligibility for mining concessions to include religious organizations, small and medium enterprises (SMEs) and cooperatives, which critics have said will benefit only those institutions with close government connections.

As President Prabowo Subianto settles into power, the shift in the political landscape is becoming clearer, with he and his Gerindra Party at center stage. The party celebrated its 17th anniversary over the weekend at a congress attended by thousands of members, ministers, and former president Joko “Jokowi” Widodo.

State-Owned Enterprises (SOE) Minister Erick Thohir has appointed Major General Novi Helmy Prasetya as the new president director of the State Logistics Agency (Bulog), sparking concerns about military involvement in civilian institutions. Given Bulog’s critical role in national food security, the decision raises questions about whether military leadership is equipped to handle the agency’s complex economic and logistical challenges.

The government's last-minute decision to redirect 100,000 tonnes of the beef import quota, or 60 percent of the 180,000-tonne total quota, to state-owned enterprises (SOEs) PT Berdikari and PT Perusahaan Perdagangan Indonesia (PPI) has sparked protests from private importers, which argue the move will severely impact the industry. The government also has allocated an extra 100,000-tonne buffalo meat quota for Indian imports that excludes private importers.

Amid the budget efficiency affecting most government institutions, President Prabowo Subianto plans to develop 100 Territorial Development Battalions to implement his vision of food self-sufficiency. The special battalions will be manned by Indonesian Military (TNI) personnel with expertise in farming and livestock, further confirming the return of the military to civilian affairs after over 25 years of Reform.

Amid nationwide budget cuts, former president Joko “Jokowi” Widodo’s ambitious Nusantara capital city project is on the brink of failure. Under the current administration of Prabowo Subianto, the Nusantara project has taken a step back in priority in lieu of funding his own flagship free nutritious meal program and his food and energy self-sufficiency vision.

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.