Latest News
President Prabowo Subianto may have raised Indonesia’s diplomatic profile in the Middle East, but going by public sentiments, opening diplomatic ties with Israel is not in the cards. The war in Gaza has made that prospect even more remote.
The government has walked back its previous plan to raise the tobacco excise tax, a policy that had been a central pillar of its earlier crackdown on illegal cigarettes. Under the former administration, the approach was largely punitive, marked by annual excise hikes, aggressive “Gempur Rokok Ilegal” raids on small retailers, and stiff penalties for anyone caught selling untaxed products. In a major policy shift, Finance Minister Purbaya Yudhi Sadewa has now announced that the government will instead offer amnesty to illegal cigarette producers, aiming to incentivize them to register, fulfill their tax obligations, and transition into the formal, regulated market.
The newly appointed Finance Minister Purbaya Yudhi Sadewa has wasted no time asserting his fiscal philosophy within just a month in office. One of his first major decisions, rejecting the call for a third round of tax amnesty, has sparked debate in policy circles, pitting the need for short-term revenue against the imperative of restoring long-term credibility to Indonesia’s tax system.
Indonesia has again amended Law No. 1/2003 on State-Owned Enterprises (SOEs), formally transforming the SOEs Ministry into the SOEs Regulatory Agency (BP BUMN). The amendment marks a significant shift in governance, transferring the ministry’s operational authority to the Daya Anagata Nusantara (Danantara) Investment Management Agency, while BP BUMN will retain a purely regulatory role. In effect, the change consolidates Danantara’s control over the management of SOEs, as its Chief Operating Officer, Dony Oskaria, has been appointed to concurrently lead BP BUMN, aligning the two institutions’ operational and oversight functions.
When the Indonesian Solidarity Party (PSI) chairman, Kaesang Pangarep, announced the party's new leadership lineup for the 2025-2030 period, a mysterious figure designated only as "Mr. J" was listed as the chief patron, with the full name to be revealed soon. PSI secretary general and Forestry Minister Raja Juli Antoni explained that the name was being kept secret under Kaesang's instruction.
Celebrating its 80th anniversary, the Indonesian Military (TNI) held a massive parade in Jakarta on Oct. 5, but amid growing concerns about the military intruding more and more into the political arena, the display of power may have sent the wrong message to some quarters about Indonesia’s democracy, already in peril.
President Prabowo Subianto has recently implemented another round of changes to his cabinet, significantly expanding the executive branch by bringing in numerous figures, many of whom are affiliated with his Gerindra Party. This political maneuver has resulted in an increasingly swelling government structure, raising serious concerns about the potential for overlapping authority and administrative ineffectiveness.