The Financial Services Authority (OJK) has urged banks classified in core capital bank group (KBMI) 1, or banks with up to Rp 6 trillion (US$355 million) in capital, to strengthen their capital position or consolidate with other banks, as part of its longer-term aim to eliminate the KBMI 1 classification altogether. The policy aims to enhance banks’ capacity, performance and service quality and enable them to scale up while maintaining operational security and efficiency.

The government recently announced what appeared to be encouraging news for the country’s rice sector: the introduction of a single-price policy for medium-grade rice to be implemented nationwide this year, after he hailed the achievement of self-sufficiency in rice production. While politically attractive, the promise of a uniform rice price across the archipelago warrants closer scrutiny, particularly over whether the price stabilization policy can be sustained without continued reliance on imports or a risk of added fiscal costs.

East Seram Regency Agriculture Office Head Sofyan Waraiya stated that PT Spice Island Maluku (PT SIM) is targeting an abacá banana investment in the regency of Maluku Province. He added that the land is located in the districts of Bula and West Bula.

President Prabowo Subianto inaugurated Pertamina’s Refinery Development Master Plan (RDMP) Balikpapan megaproject on Jan. 12, marking the completion of a long-delayed strategic oil refinery upgrade. The project, with an investment value of US$7.4 billion (Rp 123 trillion), is expected to raise production capacity to 360,000 barrels per day (bpd) from 260,000 bpd and enable Indonesia to stop importing diesel fuel as early as the second quarter of this year.

President Prabowo Subianto’s plan to give more power to the Indonesian Military (TNI) to counter terrorism raises the specter of Indonesia reverting to the days when the military practically ruled the country under President Soeharto for more than three decades.

The quality of Indonesia’s lawmaking is under growing scrutiny. The skyrocketing number of judicial review petitions should serve as a wake-up call to reform the legislative process. Meaningful public participation, in particular, remains a crucial element that must be strengthened to ensure laws are drafted with prudence, accountability and constitutional soundness.

The 2026 provincial minimum wage (UMP) announcements have triggered a backlash from both labor unions and businesses. On average, minimum wages rose by more than 5 percent year-on-year (yoy) compared with 2025. However, in most provinces, the final nominal wages remain below the basic cost of living (KHL), indicating a decline in real wages. This tension unfolds amid an economic slowdown, marked by persistent layoffs in labor-intensive sectors and weak household consumption.