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.

Students from Indonesia’s leading universities have once again taken to the streets in Jakarta and other major cities, about eight months after the last wave of mass protests turned violent. This time, they are specifically targeting President Prabowo Subianto’s leadership and governing style, which they blame for the country’s current economic difficulties.

After more than two decades without a fare increase, the Jakarta administration is once again debating whether it is time to raise Transjakarta ticket prices. As passenger numbers continue to surge and operating costs outpace revenue growth, maintaining the current flat fare of Rp 3,500 (20 US cents) is becoming increasingly difficult. Yet the debate extends beyond whether passengers should pay more. It also raises a broader question: Should Jakarta alone continue subsidizing a service that increasingly benefits commuters from across Greater Jakarta?

The government has issued Government Regulation (PP) No. 19/2026 on state asset fund Danantara, allowing entities under Danantara Investment Management (DIM) to receive state capital injections from the state budget for purposes of national development and public service. While Danantara recently secured investment grade credit ratings, the new regulation raises concerns about moral hazard, particularly as questions on the fund’s governance, transparency and financial disclosures remain unresolved.

Media across the nation have had a field day following the recent arrest of Silmy Karim, 51, the former deputy minister of immigration and corrections, quickly linking his confiscated luxury assets to corruption charges related to an alleged massive scheme extorting expatriates over their stay permits. The scandal has landed a heavy blow on the administration, especially given President Prabowo Subianto ’s vow to wage a relentless war against corruptors who undermine his government.

The passage of amendments to the 2002 Police Law marks a significant expansion of the National Police’s authority, renewing concerns that the institution is becoming increasingly powerful while remaining subject to limited external oversight. The House of Representatives approved the bill during a plenary session on June 9, following a few weeks of relatively smooth deliberations.

The House of Representatives has approved the Bill on Amendments to Law No. 4/2023 on Financial Sector Development and Strengthening (UU P2SK). According to Finance Minister Purbaya Yudhi Sadewa, the amendments cover 17 key areas, including a provision that would authorize state asset fund Danantara to issue special bonds. The proposed changes have also reignited concerns about a potential erosion of central bank independence.