Backgrounder
Holding general elections for a country the size of Indonesia is always a huge and complicated undertaking. The country is constantly struggling to find the most cost-efficient way of running multiple elections at the national and regional levels, but “effective” is never a goal as long as the electoral laws are drawn up by big political parties more interested in protecting their interests than ensuring people’s democratic rights.
The Attorney General’s Office (AGO) has struck a significant agreement with major cellular service providers in Indonesia, granting it access to users’ private information for law enforcement purposes. While the reasons for the deal look convincing, the development raises serious concerns about potential violations of fundamental citizen rights and may conflict with a Constitutional Court ruling regarding surveillance and wiretapping.
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.
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.
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.
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.
“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.