Backgrounder

July 1, 2026

The peace treaty between the United States and Iran, no matter how fragile, offers a measure of relief to President Prabowo Subianto, who is grappling with mounting economic and political pressures at home.

June 30, 2026

Recent rolling blackouts have exposed more than temporary technical failures. Although the government and state-owned electricity company PLN attributed the outages to shortages of medium-calorie coal and technical problems at two independent power plants, the disruptions highlight a deeper dilemma: balancing affordable electricity tariffs with the financial sustainability of electricity amid rising geopolitical and energy market uncertainty.

June 29, 2026

The corruption scandal engulfing the National Nutrition Agency (BGN) has significantly amplified public skepticism toward President Prabowo Subianto’s flagship free nutritious meal program. What began as policy criticism has since escalated into street protests.

June 27, 2026

The government has finally green-lit the price increase for Pertamax, the widely used nonsubsidized gasoline with research octane number (RON) 92, after months of attempting to shield consumers from rising global oil prices triggered by the United States-Israeli war on Iran, particularly disruptions due to closure of the Strait of Hormuz. While the move is expected to ease pressure on public finances, it also creates new risks such as consumers shifting to subsidized fuels, increasing the government's subsidy burden.

June 26, 2026

Indonesia's labor market is sending mixed signals. Official data show unemployment declining, yet claims for unemployment and old-age benefits are surging, while job seekers now spend nearly 20 months on average searching for work. The contradiction raises a broader question: Is Indonesia’s labor market improving, or are conventional unemployment statistics failing to capture growing pressures beneath the surface?

June 25, 2026

The recently passed Police Law revision is difficult to view in isolation. Coming just over a year after the controversial revision of the Indonesian Military (TNI) Law, it forms part of a broader pattern in which Indonesia's security institutions are steadily gaining greater authority, flexibility and access to civilian spheres.

June 24, 2026

Indonesia's stock market staged an impressive rebound after Deputy House Speaker Sufmi Dasco Ahmad floated the possibility of a buyback involving state-owned banks and major domestic financial institutions. The proposal came after the Indonesia Stock Exchange (IDX) Composite index had come under sustained pressure since late May, falling to a low of 5,342.14 on June 8 amid concerns over Indonesia's economic outlook and continued foreign capital outflows. Following Dasco's remarks on June 9, the IDX surged 7.57 percent and extended its gains the next day, suggesting that investors were eager for signs that policymakers were prepared to support the market.