Backgrounder

Pati revolt a real test of Prabowo’s austerity measures

Ten months into his term, President Prabowo Subianto's trademark austerity measures, designed to conserve funds for flagship programs like the free nutritious meal initiative, have finally collided with local realities.

Prabowo bets on 5.4 percent growth in 2026, testing fiscal discipline

President Prabowo Subianto has set an ambitious growth target of 5.4 percent yoy for 2026, as announced during the presentation of the 2026 state budget draft (RAPBN). The proposed budget seeks to narrow the fiscal deficit to 2.48 percent of GDP, while increasing total spending by 7.3 percent to Rp 3.79 quadrillion (US$231.81 billion). However, the heavy price tag of the government's flagship priority programs, combined with the emphasis on central government spending, could complicate the realization of these growth aspirations.

Edition

August 15, 2025

Political fairy tale: Gerindra’s defining steps to glory

Gerindra, President Prabowo Subianto's political party, is the third largest in the country, trailing only behind the nation's oldest party Golkar and the Indonesian Democratic Party of Struggle (PDI-P). For Gerindra to propel itself to the top in the 2029 elections, Prabowo must maintain his dual role as party chairman and the President.

Agrinas CEO exit puts spotlight on Danantara’s role

Joao Angelo De Sousa Mota has abruptly stepped down as president director of PT Agrinas Pangan Nusantara after just six months, putting a spotlight on the Daya Anagata Nusantara (Danantara) Investment Management Agency's role and commitment in the food estate program. At the heart of his resignation was frustration over what he described as Danantara's failure to prioritize and adequately fund Agrinas Pangan, stalling the SOE's work mandate to support President Prabowo Subianto's goal of achieving national food sovereignty.

Edition

August 8, 2025

‘One Piece’ flag exposes sovereignty threat narrative

As the 80th anniversary of Indonesian independence approaches, a surprising symbol of nationalist pride has emerged. Instead of displaying the historic Red and White flag, a nationwide grassroots movement has citizens waving the flag of a fictional pirate group from the famous Japanese manga and anime series One Piece.

PPATK unfreezes 31 million accounts after backlash over dormancy rules

The Financial Transaction Reports and Analysis Center (PPATK) has officially reopened access to approximately 31 million bank accounts across 105 banks, following intense public backlash. These accounts had previously been frozen on the grounds of dormancy. According to the Financial Services Authority (OJK), 9,487 formal complaints regarding unprompted account freezes were received via its official platform, the APPK, as of July 14. Since this figure only includes submissions through one channel, the actual number of grievances reported directly to banks is likely much higher.

Edition

August 1, 2025

Prabowo’s pardons: The start of Jokowi’s fall from grace

In a shocking twist to end the month, President Prabowo Subianto has decided to give legal clemency to both the secretary-general of the Indonesian Democratic Party of Struggle (PDI-P), Hasto Kristiyanto, and former trade minister Thomas ‘Tom' Trikasih Lembong for their respective graft convictions.

Danantara: Investing for long-term or the President’s ambitions?

Danantara has secured a staggering US$10 billion in unsecured credit lines from 11 foreign banks and $7 billion in equity investments from sovereign wealth funds (SWFs), a remarkable feat for an institution that is less than six months old. Yet its rapid rise raises an important question: Is Danantara truly operating as a SWF to secure long-term prosperity for future generations, or is it functioning as a super holding company to execute President Prabowo Subianto's ambitious programs?