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Opinion 5 months ago
PREMIUM
Analysis: Debate grows over government sway as BI & Fed slash rates
Bank Indonesia (BI) cut its benchmark interest rate for the fifth time this year, lowering it to 4.75 percent just a day before the United States Federal Reserve (the Fed) announcement. The move reflected BI’s bet that the US monetary authority would also ease its policy. A day later, the Fed indeed cut the federal funds rate (FFR) for the first time in 2025. Both central banks’ decisions were driven by concerns over slowing economic growth but also sparking debate on government influence in central bank decisions.
Opinion 5 months ago
PREMIUM
Analysis: To be or not to be: The political implications of police reform
Just weeks after the largest wave of demonstrations against Prabowo Subianto’s presidency, the root of public anger remains unaddressed despite several government actions. While the controversial housing allowances for House of Representatives lawmakers were scrapped and arrogant politicians were suspended, the National Police, the institution responsible for the deaths of at least 11 individuals, including 21-year-old Affan Kurniawan, has largely remained unscathed.
Opinion 5 months ago
PREMIUM
Analysis: BI burden-sharing scheme with the government draws scrutiny
Bank Indonesia (BI) and the Finance Ministry have announced another burden-sharing arrangement through Indonesian government securities (SBN), a mechanism typically reserved for easing the government’s fiscal burden during crises, even though no national crisis has been declared. Part of the proceeds will finance priority programs, continuing the central bank’s financial backing of government initiatives. Economists warn, however, that the policy risks undermining economic stability and BI’s independence.
Opinion 6 months ago
PREMIUM
Analysis: Protesters now have a common “reform agenda”
This month, protests demanding political and economic change continue, although smaller and more orderly. A clearer picture of demands that the government can respond to has been compiled into the “17+8 People’s Demands”.
Politics 6 months ago
PREMIUM
Protesters decry ‘bare minimum’ govt response
Protesters, workers and civil groups said Prabowo Subianto’s administration and the government-controlled House of Representatives have fallen far short in addressing demands raised during the recent nationwide protests, despite their reactions and concessions.
Academia 6 months ago
PREMIUM
Redefining government ‘harmony’: Not at the expense of people's lives
Influencers, students, and community voices collectively shape public opinion and, beyond that, provide effective and innovative policy literacy tools more effectively than the government or any lawmakers.
Opinion 7 months ago
PREMIUM
Analysis: Government’s dubious response to slowing economy
Indonesia’s economy is clearly losing momentum, with key indicators pointing to a broader slowdown. Economic growth dropped to 4.87 percent in the first half of 2025, down from 5.08 percent in the same period last year. In response, the government has introduced a series of stimulus packages to boost household spending but the measures may fall short, as both investment and business activity continue to weaken.
