The deal on tariffs between Indonesia and the United States, as announced by President Donald Trump last week, has put Indonesia on the good side of Washington, shifting its position in the current big power rivalry away from China, at least momentarily.

The government has pressed ahead with launching the Red and White Rural Cooperative (KDMP) as President Prabowo Subianto’s latest flagship economic initiative, despite the ongoing deliberation of the Cooperatives Law revision at the House of Representatives. July 21, 2025, witnessed the inauguration of 80,081 KDMPs nationwide with an aim to spur grassroots economic growth. However, the program’s design, which leverages village funds as collateral, poses risks not only to state finances but also to the broader goals of sustainable rural development.

Before the final verdict and sentence were handed down on July 18 in the sugar import graft trial, many had hoped the Jakarta Corruption Court would deliver a just decision. This did not turn out to be the case, and Thomas “Tom” Trikasih Lembong was convicted and handed a penalty of four years and six months in prison and a fine of Rp 750 million (US$46,000).

The 2025 Banyuwangi Ethno Carnival (BEC) was held again with splendor and creativity on July 12, 2025. The cultural fashion parade showcased spectacular costumes and provided a stage for Banyuwangi Regency's youth to express their best works.

United States President Donald Trump has announced a 19 percent import tariff on Indonesian goods, down from the original 32 percent disclosed in April. According to him, during negotiations to secure the lower rate, Indonesia agreed to not impose any retaliatory tariffs on US products. Although a tariff rate of 19 percent is still relatively steep, it is lower than the rates many other countries face, giving Indonesian exporters a competitive advantage in the US market. However, some observers have raised concern over the other side of the deal: US goods are now free to enter Indonesia without duties, which some fear could harm local industries.

The Constitutional Court's recent landmark decision to separate national and regional elections has created significant implications for legislatures, particularly the House of Representatives. In Decision No. 135/PUU-XXII/2024 issued on June 26, the court mandated that starting in 2029, national elections for president, vice president and members of the House and Regional Representative Council (DPD) are to be held 2 to 2.5 years prior to the elections for regional legislative councils (DPRD) and the heads of provincial, municipal and regency administrations.

Capital A (AirAsia) subsidiary Indonesia AirAsia has launched a direct flight route from Jakarta Special Capital Region (DKI) to Manado City, North Sulawesi Province. The new route is targeted to make it easier for tourists and businesspeople to explore Manado City, while also supporting tourism and economic growth in Eastern Indonesia. Acting Indonesia AirAsia President Director Achmad Sadikin Abdurachman stated that developing the domestic network in Indonesia is a key priority for Indonesia AirAsia.