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View all search resultsThe recent deactivation of millions of National Health Insurance (JKN) contribution assistance recipients (PBI) has been revealed as more than a mere data-cleaning exercise. It has exposed a systemic failure to recognize the vulnerability of the poor, for whom subsidized health care is a necessity, not an option. This episode underscores persistent flaws in the design and execution of Indonesia’s health protection framework.
Defense Minister Sjafrie Sjamsoeddin stirred controversy after revealing that the Prabowo Subianto administration is considering a leadership reshuffle at state-owned banks, collectively known as the Association of State-Owned Banks (Himbara). The announcement was unusual, coming from a cabinet official whose portfolio centers on national defense. However, it reflects the increasingly visible role of the national security establishment in civilian, financial and economic affairs under the current administration.
The government’s decision to revoke 28 natural resource licenses in the wake of the deadly December 2025 floods in Sumatra has drawn praise from environmental activists but has also unsettled the private sector by introducing new regulatory uncertainty. Among the revoked permits was a gold mining license linked to Astra International, intensifying scrutiny from investors and businesses over the state’s willingness to cancel legally issued concessions in response to environmental externalities.
The protracted disaster response in parts of Sumatra has increasingly become a focal point of public criticism, testing not only the state's operational capacity but also its willingness to engage with dissent. Rather than treating criticism as an essential component of democratic accountability, the government has often responded defensively, a posture that risks deepening public distrust at a time when confidence in state institutions is critical.
As 2025 draws to a close, Indonesia faces the outcomes of President Prabowo Subianto’s first year in office, marked by rapid political consolidation that delivered stability for the elites but exposed weaknesses in the government’s coordination and policy execution.
Indonesia may face a tax revenue shortfall this year, as recent data show the country had realized only 74.62 percent of its annual tax target as of November, underscoring mounting difficulties in sustaining revenue growth amid global and domestic economic headwinds. The World Bank Group (WBG) has projected Indonesia's tax ratio, the share of tax revenue in gross domestic product (GDP), to fall to 9.4 percent in 2025, down from 10.1 percent in 2024. The downward trend is a worrying signal for future state spending, particularly as the government rolls out costly flagship programs that risk widening the fiscal deficit.
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