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View all search resultsAs the rupiah stumbles past the 17,000-mark, Indonesia is facing a "vibe check" that no amount of political muscle can ignore. When nepotism shifts from a political exception to a bureaucratic rule, the resulting "Technocratic Sunset" threatens to transform a G20 economy into a fragile family office.
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.
Indonesia’s capital market is facing mounting headwinds as the number of initial public offerings (IPOs) in 2025 has fallen far short of expectations, with only 22 companies going public by September against the year’s target of 66. The outlook has further deteriorated amid nationwide riots that have triggered massive capital outflows on fears of political instability, while investor confidence took another blow after a recent cabinet reshuffle saw Finance Minister Sri Mulyani—long regarded as a trusted figure with strong international credibility—step down from her post.
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