The Indonesia Stock Exchange (IDX) enacted a new provision setting the minimum free float requirement at 15 percent for both listed companies and prospective issuers, doubling the previous threshold of 7.5 percent. This change was made in response to concerns raised by MSCI regarding the low free float levels of Indonesian equities, which led the index to freeze Indonesia’s inclusion in its indices in February and March. These measures are being implemented to demonstrate regulatory compliance ahead of MSCI’s May index 2026 review.

Indonesia’s largest state-owned construction firms – Wijaya Karya (Wika), Pembangunan Perumahan (PP), Adhi Karya (Adhi) and Waskita Karya (Waskita) – have sunk deeper into financial distress, posting a combined loss of around Rp 28 trillion (US$1.7 billion) in 2025. Far from incidental, these losses reflect years of aggressive and often unprofitable investments tied to the infrastructure push under former president Joko “Jokowi” Widodo, turning what was once a growth engine into a mounting financial burden.

Of its plan to deliver 3 million homes, the government is partnering with state-owned PT Kereta Api Indonesia (KAI) and PT Astra International to build 1,000 low-cost flats on KAI-owned land in Tanah Abang, Central Jakarta, financed through Astra’s corporate social responsibility (CSR) scheme. While the model appears efficient, it raises a key question: Is this a sustainable solution to Indonesia’s housing shortage, or merely a stopgap that masks deeper structural gaps and potential quid pro quo dynamics?

Over the past two weeks, the government has begun overseeing the implementation of Communications and Digital Ministerial Regulation No. 9/2026. The policy reflects a national push to strengthen protections for children, though concerns have emerged regarding its effectiveness and its potential impact on children’s access to information and freedom of expression.

The administration of President Prabowo Subianto plans to add another state-backed business line for Red and White Cooperatives (KMP) in the form of low-interest lending as part of ongoing efforts to combat predatory and illegal loans. However, the high-risk and heavily regulated nature of the financing business could strain the cooperatives’ already limited repayment capacity and even threaten their survival. As such, the plan risks squandering a significant portion of the Village Fund, which has effectively been pledged as collateral for Red and White Village Cooperatives (KDMP) debt.

For months, President Prabowo Subianto has been crafting his own strategic approach to the Middle East, often departing from some of Indonesia’s traditional foreign policy principles, including on the question of establishing relations with Israel. Central to this strategy was joining the Board of Peace (BOP) set up by United States President Donald Trump in January, a move widely criticized at home as abandoning Indonesia’s long-held support for Palestinians in their long struggle for an independent state.

With the rupiah continuing to weaken amid an oil and gas shock linked to the United States-Israeli war on Iran, Bank Indonesia (BI) has halved the threshold for monthly purchases of US dollars (USD) using rupiah. The move is intended to give the central bank more room to intervene in the currency market and safeguard foreign exchange reserves, particularly as pressures intensify from ongoing oil and gas supply disruptions. However, the policy may carry unintended consequences for the real economy.