Latest News
The government has finally green-lit the price increase for Pertamax, the widely used nonsubsidized gasoline with research octane number (RON) 92, after months of attempting to shield consumers from rising global oil prices triggered by the United States-Israeli war on Iran, particularly disruptions due to closure of the Strait of Hormuz. While the move is expected to ease pressure on public finances, it also creates new risks such as consumers shifting to subsidized fuels, increasing the government's subsidy burden.
Indonesia's labor market is sending mixed signals. Official data show unemployment declining, yet claims for unemployment and old-age benefits are surging, while job seekers now spend nearly 20 months on average searching for work. The contradiction raises a broader question: Is Indonesia’s labor market improving, or are conventional unemployment statistics failing to capture growing pressures beneath the surface?
The recently passed Police Law revision is difficult to view in isolation. Coming just over a year after the controversial revision of the Indonesian Military (TNI) Law, it forms part of a broader pattern in which Indonesia's security institutions are steadily gaining greater authority, flexibility and access to civilian spheres.
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.
