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Finance Minister Purbaya Yudhi Sadewa credited the result to effective fiscal management, pointing to a 5.49 percent increase in government consumption and a 3.02 percent rise in investment, backed by national strategic projects and social initiatives like the free nutritious meal program and public housing programs. But some analysts say these state-led injections may be propping up growth temporarily rather than signaling a private sector revival.
President Prabowo Subianto 's flagship free nutritious meal program has hit a critical juncture. Launched with the ambition of feeding millions and cementing his populist image, the program is now marred by reports of food poisoning, poor governance and slow budget absorption. In response, Prabowo has formed a high-level coordinating team to rescue the initiative before it collapses under its own weight.
Tech giant PT GoTo Gojek Tokopedia has remained under intense public scrutiny throughout 2025. Entering the second quarter amid mounting investor pessimism and slowing revenue growth, GoTo's share price plunged by 24 percent in May — from Rp 85 per share at the end of April to Rp 64 at the end of May. The company's troubles deepened further in July when it became indirectly implicated in the corruption investigation involving former Education Minister Nadiem Makarim and the alleged misuse of Merdeka Belajar digital-procurement funds. Then, the law enforcement conducted a search of of GoTo's office that led them to discover yet another controversy involving GoTo.
President Prabowo Subianto, who often arrives at the presidential office in a locally produced Maung vehicle, has renewed his promise to create Indonesia's first official national car within the next three years. Whether he can succeed where his predecessors failed remains uncertain, as both Soeharto and Joko "Jokowi" Widodo saw their own national car dreams fade due to political and economic missteps.
State-owned telecommunications giant PT Telkom Indonesia (Telkom) has faced tough competition in the government's bidding for broadband wireless access (BWA) rights on the 1.4 gigahertz (GHz) frequency spectrum. The government intends to use this frequency to deliver fast and affordable household internet—targeting 20 million homes with minimum speeds of 100 Mbps and monthly fees of around Rp100,000. As it turns out, Telkom lost bids in all three regions across Indonesia, with the winners being companies affiliated with President Prabowo Subianto 's brother, Hashim Djojohadikusumo, and the Sinar Mas Group conglomerate.
The latest Constitutional Court (MK) ruling ordering the House of Representatives to ensure a minimum of 30 percent women representation in all its internal bodies sounds progressive, but implementing it could be a challenge when women make up only 22 percent of all 580 House members.
Economic Economic experts are increasingly pessimistic about Indonesia's economic outlook during President Prabowo Subianto's first year in office, according to a recent survey of 64 economists from diverse institutional backgrounds. Although sentiment improved in the second semester compared to the first, expectations for economic growth remain subdued, while inflationary pressures and labor-market challenges persist.
