Backgrounder

July 8, 2025

Public Housing and Settlements Minister Maruarar “Ara” Sirait took many by surprise when he announced that Daya Anagata Nusantara (Danantara) Investment Management Agency would finance one of President Prabowo Subianto ’s flagship campaign promises: the construction of 3 million subsidized homes. Danantara has pledged a loan of Rp 8 trillion (US$ 138 million) for the project. With this move, earlier plans to finance the program through foreign loans were effectively shelved.

July 7, 2025

North Sumatra Governor Bobby Nasution consistently attracts negative press. The 33-year-old Gerindra politician and son-in-law of former president Joko "Jokowi" Widodo may soon be questioned by the Corruption Eradication Commission (KPK) after his close aide was arrested in a recent graft scandal in the province.

July 5, 2025

Sovereign wealth fund Danantara is embarking on an ambitious overhaul of state-owned enterprises (SOEs), aiming to consolidate 844 SOEs and their subsidiaries into around 200 entities. As the fund moves forward with its major consolidation plan, questions about investment returns, governance and long-term strategy remain front and center.

July 4, 2025

Indonesia’s position in the World Competitiveness Ranking (WCR) has dropped significantly, according to the World Competitiveness Yearbook (WCY) 2025, released in June by the International Institute for Management Development (IMD). The annual ranking evaluates 69 economies using global, regional, and national statistics, as well as surveys of corporate executives. The report highlights Indonesia’s sharp decline across key competitiveness indicators, amid ongoing economic headwinds.

July 3, 2025

“Don’t read too much into it,” said President Prabowo Subianto on his decision to turn down the invitation to meet with the leaders of wealthy Western countries in the Group of Seven (G7) in Canada this month, going instead to meet with Russian President Vladimir Putin.

July 2, 2025

The free nutritious meal program, intended to meet the nutritional needs of millions of students, faces significant implementation issues. Despite being a government priority, its large scale lacks organizational discipline and clear institutional alignment, leading to uncoordinated execution, especially concerning its alignment with the academic calendar and school vacations.

July 1, 2025

Concerns over the expanding role of security forces in Indonesia’s civilian institutions have intensified following the establishment of a special task force on state revenue, initiated by National Police Chief Gen. Listyo Sigit Prabowo. The task force was created to combat illegal activities across several high-risk sectors, particularly those involving natural resources—such as illegal fishing, mining, and logging. It is part of a broader government effort to strengthen enforcement and reduce losses in non-tax state revenue (PNBP).