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The Singapore Manufacturing Federation (SMF) is encouraging more healthcare and electronics companies to expand their operations in the Batam, Bintan, and Karimun (BBK) area of Riau Islands Province. This aligns with Indonesia's efforts to develop new industrial areas to support the manufacturing sector and improve port connectivity between the two countries.
The government has beaten speculators and hoarders by announcing that it will not increase domestic gasoline prices, a move that has made Indonesia a regional outlier when neighboring countries have hiked theirs in response to soaring global oil prices.
President Prabowo Subianto is hardly known for his commitment to human rights, not since taking up the presidency in October 2024 and certainly not during his Army years. He rarely addresses the issue in public, delegating it instead to his Human Rights Minister Natalius Pigai to answer questions on the topic.
Surging global oil prices and tightening domestic fuel supplies have thrust Indonesia’s long-running electrification agenda back into the spotlight. Policymakers are increasingly portraying the shift, especially in the motorcycle sector, as the most practical and immediate way to curb fuel consumption. As part of this, the government is raising targets for its electric motorcycle conversion program, aiming to gradually electrify more than 120 million gasoline-powered motorcycles nationwide.
President Prabowo Subianto has utilized the Lebaran (Idul Fitri) holiday to maintain his ties with key political figures, including Megawati Soekarnoputri, chairwoman of the Indonesian Democratic Party of Struggle (PDI-P). As the only major party that has not formally declared support for his administration, Megawati’s potential backing represents the “One Piece”: the final element needed for Prabowo to fully consolidate his leadership, an outcome he has long pursued.
Garuda Indonesia continues to face deep financial distress, recording a net loss of US$319.39 million (Rp 5.2 trillion) in 2025, nearly five times larger than its 2024 loss. The recurring deficit has raised serious concerns, particularly as the flag carrier received a substantial capital injection of US$1.42 billion from state asset fund Danantara last year to stabilize its operations. Despite this financial support and multiple leadership changes, the national airline has yet to return to profitability, underscoring persistent governance challenges that have plagued it for years.
The plan to finance President Prabowo Subianto’s flagship Red and White Village Cooperatives (KDMP) program remains controversial, as the burden is set to fall on state-owned banks and the Village Fund. The Finance Ministry has stipulated that state-owned banks, supported by government liquidity, will finance the establishment of KDMP units, while the Village Fund will be used for repayment. Without strong governance, the program risks repeating the failures of the New Order regime’s Village Unit Cooperatives (KUD).
