President Prabowo Subianto has set an ambitious growth target of 5.4 percent year-on-year (yoy) for 2026, as announced during the presentation of the 2026 state budget draft (RAPBN). The proposed budget seeks to narrow the fiscal deficit to 2.48 percent of gross domestic product, while increasing total spending by 7.3 percent to Rp 3.79 quadrillion (US$231.81 billion). However, the heavy price tag of the government’s flagship priority programs, combined with the emphasis on central government spending, austerity imposed on regional budgets and heavier reliance on tax revenue, could complicate the realization of these growth aspirations.

Ten months into his term, President Prabowo Subianto ’s trademark austerity measures, designed to conserve funds for flagship programs like the free nutritious meal initiative, have finally collided with local realities.

The economy expanded 5.12 percent year-on-year (yoy) in the second quarter, defying expectations of a slowdown and igniting debate over where the growth is coming from and why many Indonesians say they cannot feel it. In a climate of public skepticism, every decimal point carries weight.

Bank Indonesia (BI) has cancelled the rollout of its Payment ID system, which was originally scheduled to launch on Aug. 17, Indonesia’s Independence Day. The system was designed to monitor transactions by assigning each Indonesian citizen a unique code linked to their national identification number (NIK). News of the launch sparked public backlash, as BI had yet to publish many of the system’s technical specifications.

President Prabowo Subianto's efforts to strengthen the Indonesian Military (TNI) have included creating several new positions and agencies. While these changes are framed as a way to prepare for future strategic challenges, they have also sparked concerns.

Jakarta is right in pushing Kuala Lumpur to join hands in developing the disputed, mineral-rich maritime area located east of Borneo in the Sulawesi Sea. Though the latter does not appear to be all that keen about the idea, it has not completely rejected it.

Joao Angelo De Sousa Mota has abruptly stepped down as president director of PT Agrinas Pangan Nusantara after just six months, putting a spotlight on the Daya Anagata Nusantara (Danantara) Investment Management Agency’s role and commitment in the food estate program. At the heart of his resignation was frustration over what he described as Danantara’s failure to prioritize and adequately fund Agrinas Pangan, stalling the SOE’s work mandate to support President Prabowo Subianto’s goal of achieving national food sovereignty.