Indonesia's draft revision of its renewable energy regulation has raised concern that the government is backtracking on its energy transition commitments. Rather than accelerating the shift to clean energy, critics say the revision to Presidential Regulation (Perpres) No. 112/2022 on Accelerating the Development of Renewable Energy for Electricity Procurement would open the door to more coal-fired power plants (CFPPs). The move risks derailing Indonesia's net-zero emissions (NZE) target and reinforces perceptions that the Prabowo Subianto administration prioritizes energy security over transition efforts.

Finance Minister Purbaya Yudhi Sadewa has issued a stark ultimatum to the Customs and Excise Directorate General (DJBC): repair its battered reputation within a year or face the possibility of another institutional freeze. The warning puts the future of roughly 16,000 employees on the line. But the deeper question is whether the DJBC can truly rebuild itself or whether this threat simply postpones the next cycle of breakdown and intervention.

Indonesia's budget deficit widened Rp 479.7 trillion (US$29.98 billion) or 2.02 percent of GDP in October 2025, heightening concerns about the country's fiscal health. This marks a sharp increase from the Rp 309.2 trillion deficit, or 1.37 percent of GDP, recorded during the same period last year. The shortfall has been further pressured by sluggish state revenues as the government had collected only Rp 2.1 quadrillion by Oct. 31, equivalent to 73.7 percent of this year's revenue outlook.

The presence of the Indonesia Morowali Industrial Park (IMIP) Private Airport in Morowali Regency, Central Sulawesi, has sparked controversy after Defense Minister Sjafrie Sjamsoeddin asserted that the facility operates without proper state oversight. The issue appears to reflect a broader debate among state institutions, revealing friction between figures from the previous administration and the current government.

Last month, President Prabowo Subianto skipped the G20 summit in Johannesburg, South Africa, undermining his claim to be a champion of multilateralism as well as his chances of assuming the vacant leadership of the Global South. 

On Nov. 25, flash floods triggered by Cyclone Senyar struck Sumatra, severely damaging Aceh, North Sumatra, and West Sumatra. Two weeks later, more than 3 million people had been affected, with 1 million displaced, 836 dead, 518 still missing, and some 2,700 injured as of 16.00 Western Indonesia Time (WIB) on Dec. 4.

Patrick Walujo has stepped down as CEO of GoTo Gojek Tokopedia Tbk (GoTo), a move that appears to open the way for accelerated acquisition talks with Grab. Several major GoTo backers—including SoftBank, Provident, and Peak XV—were reported to have pushed for his removal, believing he had resisted the proposed takeover. The company has since announced its chief operating officer, Hans Patuwo, as the leading candidate to replace Patrick. The leadership transition comes at a sensitive moment for GoTo, amid persistent merger rumors that have reportedly drawn the attention of the Palace.

As the current administration continues its crackdown on financial crimes during President Prabowo Subianto's first year in office, the corruption investigation targeting Victor Hartono, executive director of private tobacco giant PT Djarum, remains one of the most significant cases mounted by the Attorney General's Office (AGO).

Following public outcry, President Prabowo Subianto granted rehabilitation to three former executives of state-owned enterprise (SOE) PT ASDP Indonesia Ferry convicted in the corruption case surrounding the company's acquisition of ferry operator PT Jembatan Nusantara (JN). For many observers, the prosecution of former president director Ira Puspadewi and two other executives epitomize the criminalization of business judgment.

The plan to merge national flag carrier PT Garuda Indonesia with PT Pelita Air Service, a subsidiary of energy holding state-owned enterprise (SOE) PT Pertamina, has reached a new stage. State asset fund Danantara has brought Garuda and Pertamina together to assess share structures and other corporate aspects. The move aligns with broader efforts to streamline SOEs. However, critics argue that the merger primarily serves as an effort to rescue the financially distressed Garuda.

Moving the bill to amend the 2001 Law on the National Police (Polri) into its priority list for legislation in 2025-2026, the House of Representatives is joining the presidential office and the police itself in an unofficial race to "reform" the country's main law enforcement agency.

Indonesia's largest Muslim organization, Nahdlatul Ulama (NU), is facing another severe rift among its leadership after chairman Yahya Cholil Staquf was dismissed by the organization's supreme council, the Syuriah. Although his close associations with pro-Israel figures have been publicly cited as the cause, the underlying motive behind the firing appears to stem from intense political rivalry among NU elites.

Indonesia's nickel smelter boom, long promoted as the centerpiece of its downstream industrialization agenda, is entering a new phase. Through Government Regulation No. 28/2025, the government has moved to restrict new smelter permits, prompting questions over whether this signals a response to overcapacity, a recalibration of its downstream strategy or the start of a more measured and deliberate industrial policy.

Indonesia and Australia are moving toward clinching a new, stronger defense treaty that could potentially affect the Indo-Pacific security landscape, particularly in the South China Sea, where tension has been building in recent years due to overlapping territorial claims between China and several Southeast Asian countries. 

The contribution of natural resource export receipt (DHE) to Indonesia's foreign reserves remains limited, intensifying calls to revise Government Regulation (PP) No. 8/2025 on DHE. While the policy temporarily keeps export proceeds onshore, much of the forex (forex) ultimately flows back overseas to service external debt. As a result, the regulation has fallen short of its stated goal of strengthening reserves, an issue that has become more urgent as the rupiah faces renewed depreciation pressures.

After nationwide protests swept the country in late August, the demand for institutional police reform rose to the top of the national agenda following an incident where an armored police vehicle struck and killed a civilian during the demonstrations. Just two months later, President Prabowo Subianto responded by establishing the National Police Reform Acceleration Commission.

The Indonesian government has issued a new regulation to accelerate the construction of facilities under the Red and White Cooperatives (KMP) program, one of President Prabowo Subianto's flagship initiatives. Progress has lagged expectations, with only a fraction of the buildings required to reach the target of 80,000 cooperatives (co-ops) completed so far. State-owned enterprise (SOE) PT Agrinas Pangan Nusantara, formerly the engineering consultancy Yodya Karya, has been appointed to lead the construction. However, the funding mechanism has sparked controversy, as the village fund is being allocated for loan repayments channeled through the Association of State-Owned Banks (Himbara). This reduces the budget available for other essential village functions, such as stunting prevention.

The House of Representatives has enacted the Criminal Law Procedures Code (KUHAP) bill in a significant move by the government to overhaul the colonial-era framework on Indonesia's criminal procedures, despite widespread objections.

The Indonesian government and Bank Indonesia (BI) have once again floated the possibility of redenominating the rupiah. The proposal aims to enhance economic efficiency, stabilize the currency's exchange rate, strengthen public confidence in the rupiah and maintain purchasing power. Critics, however, argue that the initiative risks diverting government resources from more substantive economic priorities. Still, Indonesia's current macroeconomic stability may provide a window for the policy as a corrective measure to past episodes of hyperinflation.

Former president Joko "Jokowi" Widodo is struggling to maintain his political clout in Indonesia. The prolonged controversy surrounding his academic certificate has eroded his credibility, while his clan, once expected to carry on his political legacy, has sought every path to establish meaningful influence. Instead, many of Jokowi's close allies have become entangled in legal troubles, and his sway within President Prabowo Subianto's administration is steadily fading.

Indonesia's economy expanded by a modest 5.04 percent in the third quarter of 2025, adding 1.9 million new jobs over the past year. The government quickly celebrated the achievement, hailing it as proof that economic growth is reaching the people. Yet behind the upbeat headlines lies a deeper question: is this growth truly generating quality employment, or merely fueling the quiet expansion of the informal economy?

Despite the rise in graft scandals over the past year, a recent sting operation by the Corruption Eradication Committee (KPK) in Riau signals that systemic corruption in the country is showing no sign of slowing down.

President Prabowo Subianto has announced that the government will assume responsibility for repaying the Rp 1.2 trillion (US$71.81 million) cost overrun debt incurred by Indonesia's first high-speed railway, Whoosh. Prabowo justified the government's intervention by framing the railway as a public service obligation (PSO), arguing that its benefits extend beyond profit. He further stated that the government intends to fund the repayment using assets recovered from corruption cases, though the feasibility of this approach remains uncertain.

The Rp 200 billion (US$12 million) civil lawsuit against Tempo magazine now being heard at the South Jakarta District Court has all the hallmarks of a concerted government campaign to silence critical media. The suit, filed by Agriculture Minister Amran Sulaiman, is so weak that the court should have dismissed it with prejudice.

Finance Minister Purbaya Yudhi Sadewa credited the result to effective fiscal management, pointing to a 5.49 percent increase in government consumption and a 3.02 percent rise in investment, backed by national strategic projects and social initiatives like the free nutritious meal program and public housing programs. But some analysts say these state-led injections may be propping up growth temporarily rather than signaling a private sector revival.

President Prabowo Subianto's flagship free nutritious meal program has hit a critical juncture. Launched with the ambition of feeding millions and cementing his populist image, the program is now marred by reports of food poisoning, poor governance and slow budget absorption. In response, Prabowo has formed a high-level coordinating team to rescue the initiative before it collapses under its own weight.

Tech giant PT GoTo Gojek Tokopedia has remained under intense public scrutiny throughout 2025. Entering the second quarter amid mounting investor pessimism and slowing revenue growth, GoTo's share price plunged by 24 percent in May — from Rp 85 per share at the end of April to Rp 64 at the end of May. The company's troubles deepened further in July when it became indirectly implicated in the corruption investigation involving former Education Minister Nadiem Makarim and the alleged misuse of Merdeka Belajar digital-procurement funds. Then, the law enforcement conducted a search of of GoTo's office that led them to discover yet another controversy involving GoTo.

President Prabowo Subianto, who often arrives at the presidential office in a locally produced Maung vehicle, has renewed his promise to create Indonesia's first official national car within the next three years. Whether he can succeed where his predecessors failed remains uncertain, as both Soeharto and Joko "Jokowi" Widodo saw their own national car dreams fade due to political and economic missteps.

State-owned telecommunications giant PT Telkom Indonesia (Telkom) has faced tough competition in the government's bidding for broadband wireless access (BWA) rights on the 1.4 gigahertz (GHz) frequency spectrum. The government intends to use this frequency to deliver fast and affordable household internet—targeting 20 million homes with minimum speeds of 100 Mbps and monthly fees of around Rp100,000. As it turns out, Telkom lost bids in all three regions across Indonesia, with the winners being companies affiliated with President Prabowo Subianto's brother, Hashim Djojohadikusumo, and the Sinar Mas Group conglomerate.

The latest Constitutional Court (MK) ruling ordering the House of Representatives to ensure a minimum of 30 percent women representation in all its internal bodies sounds progressive, but implementing it could be a challenge when women make up only 22 percent of all 580 House members.