Backgrounder

To be or not to be: The political implications of police reform

Just weeks after the largest wave of demonstrations against Prabowo Subianto's presidency, the root of public anger remains unaddressed despite several government actions. While the controversial housing allowances for House of Representatives lawmakers were scrapped and arrogant politicians were suspended, the National Police, the institution responsible for the deaths of at least 11 individuals, including 21-year-old Affan Kurniawan, has largely remained unscathed.

Purbaya’s Rp 200 trillion gamble: Catalyst or costly misfire?

Newly installed Finance Minister Purbaya Yadhi Sadewa has jolted Indonesia's policy landscape with an audacious move just days into his tenure. He has redirected the government's excess budget balance of Rp 200 trillion (US$12.5 billion) from Bank Indonesia to state-owned banks, aiming to inject liquidity into the financial system, spur credit growth and ultimately jumpstart economic activity. Yet questions swirl over whether this is the right policy to propel Indonesia's growth.

Edition

September 12, 2025

Protesters now have a common “reform agenda”

This month, protests demanding political and economic change continue, although smaller and more orderly. A clearer picture of demands that the government can respond to has been compiled into the "17+8 People's Demands". Military intervention in the protests may have been a factor in lowering the political temperature that boiled at the end of August, when many protests in Jakarta and other cities turned violent. Some analysts attribute this relative calm to the absence of agents provocateurs encouraging crowds to turn violent, with a hidden political agenda.

Goodbye Sri Mulyani, hello uncertainty

Sri Mulyani Indrawati has finally stepped down as finance minister after nearly 14 years of steering Indonesia's economy through crises and reforms. Less than a year into President Prabowo Subianto's presidency, one of the most capable and respected figures in government has been reshuffled out. The decision has sent shockwaves through financial markets and reignited fears about waning foreign investor confidence. Many are asking if this moment will once again prove to be "Indonesia's loss, and the world's gain."

Edition

September 5, 2025

Prabowo uses big stick, few carrots to restore order

The deployment of the Indonesian Military (TNI) to crack down on massive nationwide protests, some of which descended into violence, around the turn of the month may have helped restore order. President Prabowo Subianto, for one, felt comfortable enough about the situation in the country for him to make a quick trip to Beijing.

Patriot Bonds oversubscribed amid questions of compulsion

The Patriot Bonds, a debt instrument issued through Indonesia's state asset fund Danantara, have attracted demand exceeding the amount offered, despite offering a much lower coupon rate than comparable government securities. Some analysts point to quiet pressure from the Prabowo Subianto administration as a factor in the oversubscription, raising concerns that the bond's "voluntary participation" label masks market distortion and risks crowding out private financing.

Edition

August 29, 2025

Noel’s arrest: All that is wrong with Indonesian politics

"Wanted! A stellar minister who's ready to be sentenced to death if they commit corruption," exclaimed Immanuel "Noel" Ebenezer, then-leader of the Jokowi Mania (JoMan) volunteer group loyal to former president Joko Widodo, in 2020.

Illegal mining in Indonesia isn’t hidden, it’s protected

Illegal mining is hardly a hidden crime in Indonesia, it is an entrenched industry protected by powerful backers. The practice remains unresolved even under President Prabowo Subianto's administration. In his State of the Nation address, Prabowo pledged to confront active and retired police and military generals allegedly involved in the illegal mining business. Whether those words will translate into decisive action remains to be seen.