President Prabowo Subianto has positioned himself as a populist leader, launching ambitious initiatives to appeal to the broader public. However, his recent meet-ups with the country’s top business magnates have raised suspicion over his underlying intentions.

Indonesia has launched its first bullion banks by licensing Bank Syariah Indonesia (BSI) and state-owned pawn Pegadaian to provide bullion banking services. This initiative aims to strengthen the gold downstream sector and maximize economic benefits from processing, trading and financing, helping gold-producer Indonesia retain more value domestically.

The Constitutional Court has wrapped up all of the sessions to adjudicate regional election disputes and handed down several key rulings, including the most significant one, which was a vote rerun in several regions. The election reruns will be held amid the government’s austerity measures that may compromise the fair and transparent principles of the democratic process.

President Prabowo Subianto has signed Presidential Regulation (Perpres) No. 5/2025 to establish a forestry task force tasked with collecting fines from the forestry sector. The move mirrors efforts made under the previous administration to collect penalties from illegal palm oil operations. However, with the Attorney General’s Office (AGO) still investigating alleged corruption involving Rp 300 trillion (US$18.2 billion) in palm oil fines from that period, the formation of the new task force has raised questions about its timing and underlying motives.

Public trust in the government continues to diminish after a Rp 193.7 trillion (US$11 billion) graft case involving subsidiaries of state-owned oil and gas holding company Pertamina sparked national outcry. Among the nine suspects in the case is Kerry Adrianto Riza, the 38-year-old son of politically connected oil tycoon Muhammad Riza Chalid.

PT Sri Rejeki Isman (Sritex), one of Southeast Asia’s largest integrated textile manufacturers, officially ceased operations on Mar. 1, 2025, following its bankruptcy declaration. The shutdown led to the layoff of 10,965 workers between January and February 2025. In response, President Prabowo has instructed several ministers to devise solutions to help re-employ the affected workers, including leasing factory machinery, attracting investors to acquire the company and facilitating their absorption into other companies.

Volunteers who campaigned for Anies Baswedan in the 2024 presidential election have launched Gerakan Rakyat (People’s Movement) potentially offering a political vehicle for the popular but also controversial former Jakarta governor, should he decide to run in 2029. Still only 55 years old and very ambitious, it is almost certain that he will throw down the gauntlet.

The Indonesian Military (TNI) Law has joined the priority list of this year’s National Legislation Program (Prolegnas), after failing to make it in the 2019-2024 term of the House of Representatives. The revision comes as President Prabowo Subianto shows a tendency to involve the military in his flagship programs.

In an effort to stabilize rice production and prices, the Agriculture Ministry has enlisted the Indonesian Military (TNI) and the National Police to oversee the procurement of harvested dry unhusked rice (GKP) at a government-set price of Rp 6,500 per kilogram (30 US cents). This regulation on the Government Purchase Price (HPP) for unhusked rice took effect on Jan. 15, 2025.

From the outset of Prabowo Subianto’s presidency, the Indonesian Democratic Party of Struggle (PDI-P) was touted to play an opposition role. However, four months since he took office, the party has barely made headway in contesting any significant legislation, let alone take a firm, public stand in opposition to Prabowo.

President Prabowo Subianto has officially launched the highly anticipated Daya Anagata Nusantara (Danantara) Investment Management Agency, announcing an ambitious initial investment wave totaling Rp 325 trillion (US$20 billion) across 20 strategic projects. Through these projects, President Prabowo reaffirmed the agency’s commitment to long-term sustainable growth aimed at strengthening Indonesia’s economic foundation.

The massive student demonstrations that erupted in several cities in Indonesia last week were the most serious anti-government protests since President Prabowo Subianto took charge in October. Clearly, all is not well in spite of his high approval ratings.

President Prabowo Subianto has vowed to crack down on mafia-like practices in the oil and gas industry, after an ongoing probe named nine executives as suspects in a case on fraudulent crude oil and fuel trading, estimated to have incurred state losses of Rp 193.7 trillion (US$12 billion) between 2018 and 2023. The outcome of this case will be a test of Prabowo’s commitment to fighting corruption in the energy sector, especially as to whether the investigation extends to high-profile figures who might have profited from the illegal activity.

The government is enhancing labor protections by introducing new regulations that guarantee holiday bonuses (THR) for ride-hailing drivers. However, due to the lack of a clear legal classification of these drivers as employees, their entitlement to these benefits remains uncertain. In parallel, President Prabowo Subianto has enacted a regulation ensuring that laid-off workers receive 60 percent of their last salary for six months.

President Prabowo Subianto is pushing for budget efficiency, which is expected to save around Rp 300 trillion (US$18.36 billion) and could even reach Rp 750 trillion, to create enough fiscal space to fund his signature programs such as the free nutritious meals program and the new Danantara sovereign wealth fund. On the other hand, this austerity measure is feared to undermine the morale of government employees, who will see their pay drop significantly.

The government has extended the mandatory lock-up period for export earnings from natural resource commodities (DHE) from three months to one year. This policy aims to bolster Indonesia’s foreign exchange (forex) liquidity amid ongoing economic uncertainties. However, the move has faced strong resistance from businesses, which argue that it significantly increases their financial burden. The extended lock-up period is set to take effect around March 1 with the issuance of Government Regulation (PP) No. 8/2025.

Like most countries around the world, Indonesia is struggling to contain the problems and dangers stemming from rampant growth in internet use. When it comes to tackling tech giants with platforms that allow the proliferation of harmful content however, the government is moving cautiously, counting on their help instead of tackling them head-on.

The House of Representatives passed on Feb. 18 the fourth amendment to Law No. 4/2009 on mineral and coal mining (UU Minerba) following a hasty deliberation during its recess to expand eligibility for mining concessions to include religious organizations, small and medium enterprises (SMEs) and cooperatives, which critics have said will benefit only those institutions with close government connections.

As President Prabowo Subianto settles into power, the shift in the political landscape is becoming clearer, with he and his Gerindra Party at center stage. The party celebrated its 17th anniversary over the weekend at a congress attended by thousands of members, ministers, and former president Joko “Jokowi” Widodo.

State-Owned Enterprises (SOE) Minister Erick Thohir has appointed Major General Novi Helmy Prasetya as the new president director of the State Logistics Agency (Bulog), sparking concerns about military involvement in civilian institutions. Given Bulog’s critical role in national food security, the decision raises questions about whether military leadership is equipped to handle the agency’s complex economic and logistical challenges.

The government's last-minute decision to redirect 100,000 tonnes of the beef import quota, or 60 percent of the 180,000-tonne total quota, to state-owned enterprises (SOEs) PT Berdikari and PT Perusahaan Perdagangan Indonesia (PPI) has sparked protests from private importers, which argue the move will severely impact the industry. The government also has allocated an extra 100,000-tonne buffalo meat quota for Indian imports that excludes private importers.

Amid the budget efficiency affecting most government institutions, President Prabowo Subianto plans to develop 100 Territorial Development Battalions to implement his vision of food self-sufficiency. The special battalions will be manned by Indonesian Military (TNI) personnel with expertise in farming and livestock, further confirming the return of the military to civilian affairs after over 25 years of Reform.

Amid nationwide budget cuts, former president Joko “Jokowi” Widodo’s ambitious Nusantara capital city project is on the brink of failure. Under the current administration of Prabowo Subianto, the Nusantara project has taken a step back in priority in lieu of funding his own flagship free nutritious meal program and his food and energy self-sufficiency vision.

Despite its scheduled dissolution in 2025, new revelations have emerged regarding the massive graft case at state-owned insurer PT Jiwasraya. The case, which led to state losses of Rp 16.8 trillion (US$1.06 billion), is among the largest financial scandals in Indonesia’s history. The Attorney General’s Office (AGO) recently named Isa Rachmatarwata, the Finance Ministry’s budget director general, as a suspect in the case. According to the AGO, Isa allegedly played a key role in approving Jiwasraya’s ill-fated JS Saving Plan in 2009 despite knowing that the company was already financially insolvent at the time. 

Another government drive for financial efficiency has been shot down following a public outcry against restrictions on the sales of subsidized household gas introduced on Feb. 1. The new policy quickly gathered heat, with long lines of angry people around the country trying to buy 3-kilogram canisters of LPG and amid harsh criticism going viral on social media.

Just one month after its launch on Jan. 1, the government’s Rp 1.3 trillion (US$79.58 million) Core Tax Administration System (Coretax) is already under fire. Designed to modernize and streamline the country’s tax administration, Coretax has faced criticism for technical malfunctions, complexity and allegations of corruption.

President Prabowo Subianto, a former Army general, has relied heavily on the Indonesian Military (TNI) to accelerate the implementation of his flagship programs. However, he has maintained some distance from the National Police. Despite this, both the TNI and the police wield significant influence in Prabowo’s administration, with several figures from military and police backgrounds securing key cabinet positions and playing crucial roles in power transitions.

The House of Representatives Commission XII overseeing energy has approved a draft government regulation on the National Energy Policy (KEN), which carries a less ambitious decarbonization target. The new policy postpones the 23 percent share of renewable energy in the national energy mix to 2030 from its original target of 2025, while the share of coal is projected to rise from 39.48 percent last year to 40.7 percent in 2030.

Indonesian officials may openly dismiss the impact of the likely huge cuts in aid coming from the United States as minimal, but privately they know they will still affect many programs in health promotion, poverty alleviation and climate justice and a few other sectors that are crucial to the country’s 2030 Sustainable Development Goals (SDG) agenda.

The House of Representatives (DPR) has officially approved the long-awaited third amendment to Law No. 19/2003 governing state-owned enterprises (SOEs). The revised law aims to achieve several key objectives, with two drawing particular attention: The establishment of the investment management agency Daya Anagata Nusantara (Danantara), which has faced repeated delays since its planned launch in November last year, and the creation of a legal framework for the privatization of SOEs.