Backgrounder
President Prabowo Subianto's much-anticipated intervention has seemingly eased tensions over the disputed Panjang, Lipan, Mangkir Gadang, and Mangkir Ketek islands, which had caused a feud between Aceh and neighboring North Sumatra.
A forum of retired senior military and police officers has officially submitted a proposal to the House of Representatives to impeach Vice President Gibran Rakabuming Raka. The group, which includes high-profile figures like former vice president Try Sutrisno, argues that Gibran's path to office was marred by undemocratic processes and legal flaws.
The Indonesian government is facing a critical dilemma as it seeks to advance its strategic nickel downstreaming agenda while managing mounting public pressure to preserve the ecological and tourism-rich region of Raja Ampat in Southwest Papua. The controversy over nickel mining in the area has spotlighted tensions between Indonesia’s ambition to lead in the global green supply chain through its nickel downstream industry development and the need to protect one of its most biodiverse and scenic marine ecosystems.
The Prosperous Justice Party (PKS), the country’s largest Islamist party, isn’t going to change course any time soon following changes in its leadership this month, as it has chosen instead to reaffirm its loyalty to the government of President Prabowo Subianto until his term ends in 2029.
Danantara has little choice but to rescue financially bleeding state-owned enterprises (SOEs) by channeling dividends from profitable SOEs, as government funds are no longer permitted for such purposes. The market has responded positively to the planned rescue of near-collapse SOEs, though some have warned Danantara of the potential risk of wasting valuable investment capital.
A Rp 9.9 trillion (US$610 million) corruption scandal involving the procurement of school laptops by the Education, Culture, Research and Technology Ministry from 2019 to 2022, under the leadership of Nadiem Makarim, has captured national attention.
The Prabowo Subianto administration on May 23, 2025, launched a stimulus package aimed at sustaining household consumption and maintaining economic growth momentum amid rising global uncertainties. The package consists of five short-term measures set to be implemented from June to July 2025—one fewer than initially planned after the government scrapped a proposed electricity price discount. While the consumer-focused stimulus was introduced amid ongoing fiscal tightening, it was deemed necessary following a slowdown in household consumption and overall economic growth in the first quarter of 2025.