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View all search resultsIndonesia’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.
At a Constitutional Court hearing, House of Representatives lawmakers and government ministers asked the justices to drop judicial review petitions against the recently revised Indonesian Military (TNI) Law, arguing that the plaintiffs lack a legal standing.
The Prosperous Justice Party (PKS), the country’s largest Islamist party, isn’t going to change course any time soon following changes in its leadership this month, as it has chosen instead to reaffirm its loyalty to the government of President Prabowo Subianto until his term ends in 2029.
Mass organizations have been identified as an obstacle to the investment climate in the country, as many of them often engage in thuggery, demanding illegal levies in return for security rackets. While some of the groups have proven to violate the law, it looks difficult for the law enforcers to act against them, simply because of their connection to, and hence support from, political elites, if not the military or the police top brass.
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