President Prabowo Subianto joined a massive Labor Day rally in Jakarta on May 1, making some promises that went down well with the crowd. However, his appearance seemed to blunt their expressing more radical demands as well as criticisms against businesses and the government.

The World Bank has revised down its forecast for Indonesia’s economic growth in 2025 to 4.7 percent year-on-year (yoy), below the psychologically significant 5 percent threshold, from a previous estimate of 5.1 percent. The bank also downgraded Indonesia’s average growth projection for 2025–2027 to just 4.8 percent, a notable drop from the 5.1 percent average it projected in October 2024 for the 2024–2026 period. This downward revision raises serious questions about the feasibility of the Prabowo Subianto administration’s goal to achieve 8 percent annual GDP growth by the end of his term.

Mass organizations have been identified as an obstacle to the investment climate in the country, as many of them often engage in thuggery, demanding illegal levies in return for security rackets. While some of the groups have proven to violate the law, it looks difficult for the law enforcers to act against them, simply because of their connection to, and hence support from, political elites, if not the military or the police top brass.

President Prabowo Subianto delivered a closed-door address to 1,500 state-owned enterprise (SOE) leaders at the Danantara Indonesia Town Hall Meeting on Apr. 28, held at the Jakarta Convention Center. The unexpected decision to exclude the press from the event has raised concerns about transparency, particularly given the public role of SOEs in shaping Indonesia’s economic trajectory.

The passing of Pope Francis on April 21 has struck the global community to its core. From the outset of his papacy, Francis made a difference. He was a man of many firsts: the first Jesuit pontiff, the first Latin American pope, and the first pope born outside of Europe since the 8th century. Born Jorge Mario Bergoglio, he chose the Latin name Francis for his pontificate in honor of Saint Francis of Assisi, the 13th-century Italian friar who, in his words, was a man of poverty and peace “who loves and protects creation”.

A planned revision of the Financial Sector Development and Strengthening Law (P2SK) by Indonesia’s House of Representatives (DPR) may go beyond its original intent, potentially redrawing the central bank’s mandate in ways that could blur the line between fiscal and monetary policy, as well as reignite concerns about Bank Indonesia’s (BI) independence.

Vice President Gibran Rakabuming Raka is facing mounting pressure, mostly for underperformance, in the seven months since taking up the job. The latest sign of tension in his relationship with President Prabowo Subianto was when the latter asked former president Joko “Jokowi” Widodo to represent him at last week’s funeral ceremony of Pope Francis in the Vatican. This is a job normally reserved for the VP. There was no explanation for why Prabowo gave the assignment to Jokowi, Gibran’s father and the country’s president from 2014 to 2024.