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.

Finance Minister Purbaya Yudhi Sadewa's recent decision to withdraw Rp 75 trillion (US$4.5 billion) from state-owned banks has reignited concerns over the coherence and consistency of Indonesia's fiscal strategy.

It should have been a no-brainer for Indonesia to condemn the United States for bombing Caracas and then seizing Venezuelan President Nicolás Maduro and First Lady Cilia Flores, flying them to New York to face drug trafficking charges. This was clearly an act of aggression against a sovereign country and a violation of international laws.

After decades of relying on Dutch colonial regulations, Indonesia finally has its own Criminal Code (KUHP), which came into effect on Jan. 2. While the government claims the new KUHP reflects modern legal standards, critics say it retains significant gaps, particularly regarding potential conflict between law enforcement practices and human rights protections.

Indonesia entered 2026 with an unusual fiscal blind spot. In the first week of the new year, the State Budget (APBN) 2026 Law had yet to be made publicly available, only appearing on the same day the Finance Ministry released its report on the 2025 APBN performance. More strikingly, Presidential Regulation (Perpres) No. 118/2025, which details the APBN and operationalizes the budget, has yet to surface at all.

Indonesia may face a tax revenue shortfall this year, as recent data show the country had realized only 74.62 percent of its annual tax target as of November, underscoring mounting difficulties in sustaining revenue growth amid global and domestic economic headwinds. The World Bank Group (WBG) has projected Indonesia's tax ratio, the share of tax revenue in gross domestic product (GDP), to fall to 9.4 percent in 2025, down from 10.1 percent in 2024. The downward trend is a worrying signal for future state spending, particularly as the government rolls out costly flagship programs that risk widening the fiscal deficit.