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Indonesia's economy expanded by a modest 5.04 percent in the third quarter of 2025, adding 1.9 million new jobs over the past year. The government quickly celebrated the achievement, hailing it as proof that economic growth is reaching the people. Yet behind the upbeat headlines lies a deeper question: is this growth truly generating quality employment, or merely fueling the quiet expansion of the informal economy?
Despite the rise in graft scandals over the past year, a recent sting operation by the Corruption Eradication Committee (KPK) in Riau signals that systemic corruption in the country is showing no sign of slowing down.
President Prabowo Subianto has announced that the government will assume responsibility for repaying the Rp 1.2 trillion (US$71.81 million) cost overrun debt incurred by Indonesia's first high-speed railway, Whoosh. Prabowo justified the government's intervention by framing the railway as a public service obligation (PSO), arguing that its benefits extend beyond profit. He further stated that the government intends to fund the repayment using assets recovered from corruption cases, though the feasibility of this approach remains uncertain.
Statistics Indonesia (BPS) recorded the Papua Province economy growing by 4.21 percent year-on-year (yoy) in the third quarter (Q3) of 2025. BPS Papua Head Adiriana Helena Carolina stated in Jayapura Regency, Papua, on Nov. 5, 2025, that Papua's gross domestic product (GDP) reached Rp22.7 trillion based on current prices and Rp13.45 trillion based on the 2010 constant prices. In terms of production, the highest growth was achieved by the real estate sector with 8.26 percent.
The Rp 200 billion (US$12 million) civil lawsuit against Tempo magazine now being heard at the South Jakarta District Court has all the hallmarks of a concerted government campaign to silence critical media. The suit, filed by Agriculture Minister Amran Sulaiman, is so weak that the court should have dismissed it with prejudice.
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.
