Indonesia’s poverty and unemployment rates continued to decline, according to data released by Statistics Indonesia (BPS) earlier this year. This progress is accompanied by a modest reduction in income inequality. However, these gains mask deeper structural issues as urban poverty rises and labor informality becomes more widespread, exposing more Indonesian workers to precarity.

Through a recent reciprocal trade agreement between the United States and Indonesia, the Indonesian government has officially recognized the US as a jurisdiction with “adequate data protection.” This designation creates a legal pathway for the transfer of personal data from Indonesia to the US, effectively sidestepping existing data localization requirements by treating US-based entities, including data brokers, as equivalent to Indonesian data operators. As the US remains the global center for data brokerage, experts warn that this move could legitimize the large-scale commercialization of Indonesian personal data.

ASEAN has come under heavy criticism for its failure to prevent war from erupting between Thailand and Cambodia, with a part of that blame leveled at Indonesia as the largest member of the regional group. The paralysis of ASEAN reveals the limits of diplomacy when it comes to resolving territorial disputes between members. Not surprisingly, Indonesia has not done much beyond appealing for restraint.

In a shocking twist to end the month, President Prabowo Subianto has decided to give legal clemency to both the secretary-general of the Indonesian Democratic Party of Struggle (PDI-P), Hasto Kristiyanto, and former trade minister Thomas ‘Tom’ Trikasih Lembong for their respective graft convictions.

Danantara has secured a staggering US$10 billion in unsecured credit lines from 11 foreign banks and $7 billion in equity investments from sovereign wealth funds (SWFs), a remarkable feat for an institution that is less than six months old. Yet its rapid rise raises an important question: Is Danantara truly operating as a SWF to secure long-term prosperity for future generations, or is it functioning as a super holding company to execute President Prabowo Subianto ’s ambitious programs?

Indonesia's political elite are once again pushing to alter the system for regional head elections (Pilkada), currently conducted through direct public voting. The proposed changes aim to shift the authority to elect local leaders back to regional legislative councils (DPRD) or even allow for direct presidential appointments. However, these discussions appear less like well-reasoned policy debates and more like atempts to gauge public reaction.

Indonesia is making bold moves on both the monetary and trade policy fronts—cutting its benchmark interest rate by 25 basis points to 5.25 percent and finalizing a landmark trade agreement with the United States. The deal eliminates 99 percent of Indonesia’s trade barriers on US industrial and agricultural products, lowering the US tariffs on Indonesian imports from 32 percent to 19 percent.