In recent weeks, Prabowo unveiled controversial plans to centralise key commodity exports and fired the head of his flagship $15 billion free meals program amid a corruption probe. Prabowo has repeatedly said he won’t tolerate graft and is seeking to strengthen the economy. But his erratic execution is denting trust in Indonesia’s institutions.
Media update
The government is rolling out transportation fare subsidies for the second half of 2026, targeting the midyear school holiday season and the year-end Christmas and New Year travel period to spur domestic consumption and boost tourism.
Tokyo confirmed on June 5 that the two countries had agreed to begin formal talks on the possible transfer of Asagiri-class destroyers to the Indonesian Navy, following a meeting between their defence ministers, Shinjiro Koizumi and Sjafrie Sjamsoeddin.
Minister of Higher Education, Science, and Technology Brian Yuliarto received a courtesy visit from an Australian delegation to strengthen strategic partnerships in research and higher education in support of sustainable development.
Indonesia’ central bank hiked its policy rate by 25 basis rates as it seeks to strengthen the local currency that has plummeted to record lows. The surprise increase brought the 7-day reverse repo rate to 5.5% from 5.25%. Economists polled by Reuters had estimated the country to hold rates.
A key coal benchmark for Asia rose to the highest level in nearly two years as Indonesia’s new export rules delayed shipments, tightening supplies just as demand for the power-plant fuel rises with the onset of summer.
Australia has expressed support for Indonesia’s accession to the Organisation for Economic Co-operation and Development (OECD) and membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Indonesia’s Trade Ministry published technical regulations on Monday that give the central government more control over coal, palm oil and ferroalloy exports, part of a controversial plan by President Prabowo Subianto to boost earnings from the country’s plentiful natural resources.
Indonesia is subject to a lower rate for having bans in place, but lacks effective enforcement. US Trade Representative Jamieson Greer slammed the failures as “unacceptable”.
The arrest of Dadan Hindayana comes a day after he was sacked as head of the National Nutrition Agency (BGN).
Fake invoices, shell companies and corrupt officials have systematically siphoned nation’s commodity wealth and parked it offshore.
Indonesia pledged transparency in the state company that will become its sole exporter of important commodities, as a transition period to a centralised export system started on Monday with coal, palm oil and ferroalloys.
The Indonesian parliament’s financial commission and the government agreed at a hearing on Wednesday to reform the laws relating to the country’s financial system and expand the mandate of the central bank to include the promotion of economic growth.
The speech sent shock waves around global markets, with commodity traders scrambling to understand the implications. Indonesian officials clarified later on May 20 that exporters would be required to report their sales to Danantara starting June 1, and three months later the sovereign wealth fund would start handling contracts, shipping and export-payment processes.
Rosan Perkasa Roeslani, Chief Executive Officer of the Investment Management Agency of Nusantara (BPI Danantara), announced that Luke Thomas Mahony has been appointed to helm PT Danantara Sumberdaya Indonesia (DSI) as its Chief Executive Officer.
The policy will initially target coal, crude palm oil (CPO) and ferroalloys, sectors worth tens of billions of dollars annually and long characterised by complex trading ecosystems involving producers, traders, refiners and offshore intermediaries.
