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.

Jakarta Special Capital Region (DKI) Governor Pramono Anung stated that the DKI Jakarta Provincial Government is opening investment opportunities for the development of fisheries and agriculture in South Sulawesi Province after receiving a visit from South Sulawesi Governor Andi Sudirman Sulaiman in Central Jakarta Administrative City, DKI Jakarta, on Dec. 19, 2025.

The Nusantara Capital City (IKN) and the Sarawak Government of Malaysia has met to discuss opportunities for collaboration in various sectors. The meeting took place at the IKN Authority Office on Dec. 10, 2025. It was a strategic opportunity to explore potential cross-sector cooperation and investment, ranging from transportation, education, health, and culture.