CNG vs Gas Pipeline
Iran war cost the State budget dearly from higher energy subsidies. While it inevitable for gasoline, diesel, and aviation fuel, given the circumstances (bigger gap between domestic production and consumption), the country should have long invested in gas pipeline infrastructure to avoid repeated crisis in cooking fuel (liquefied petroleum gas/LPG).
Danantara and GoTo
The government’s entry into GoTo Group through Danantara Indonesia may look modest on paper. The stake is still below 1 percent. Yet politically and economically, the signal is enormous.
A legal battle over prime land in Menteng
The dispute over a heritage property on Teuku Umar Street in Menteng, Central Jakarta, may appear at first glance to be just another land conflict between a private company and the state. But the ongoing battle between PT Temasra Jaya and the Military (TNI) reveals something far larger: the unfinished legacy of military-controlled assets, the fragility of property rights in Indonesia, and the growing political reach of the armed forces beyond defense affairs.
Windfall tax on nickel
Shares of nickel producers ended mostly lower ground on Tuesday (May 5) even when the commodity gained 2.1% to US$19,635 in the London Metal Exchange (LME) as the government floated a plan to charge a windfall tax on nickel and coal.
Defending rupiah
Bank Indonesia has reduced further the cap to buy US dollars without underlying transactions from US$50,000 to US$25,000. The central bank halved the cap from US$100,000 to US$50,000 last month, but failed to prevent further depreciation of rupiah.
Merdeka Copper’s rights issue
Merdeka Copper Gold (MDKA), co-owned by Saratoga and Provident, has launched a non-preemptive rights (NPR) issue for 2.447 billion shares with expected proceeds of US$434 million. This is one of the largest fund raising in Indonesian capital market so far this year amid growing capital outflow from emerging markets.
Fast refunds, selective capitalism
As Finance Minister introduced Peraturan Menteri Keuangan (PMK) Nomor 28 Tahun 2026, the government framed it as a long-overdue response to one of the private sector’s loudest complaints: slow tax refunds. By accelerating the return of overpaid taxes, the policy promises to improve business liquidity, reduce bureaucratic delays and signal a more business-friendly tax administration. On the surface, it is a reform that seems both rational and necessary.
Layoffs in 2026 (5)
Doll manufacturer PT Combine Will Industrial Indonesia (CWII) has recently gradually dismissed 849 employees from its plant in Sragen, Central Java. The last batch of the dismissal was late last month.
Weaker rupiah & tourism
Weaker currency normally leads to higher growth of tourism. Unfortunately, that’s not the case with Indonesia, at least that’s what happened in the first quarter of the year. The country welcomed 3.44 million foreign tourists in the period, an increase of 8.62% from the corresponding period last year, but the Iran war started to hit the sector in March.
Shoes for People’s School students
Students at the People’s School (Sekolah Rakyat/SR) are exempt from all costs, including tuition fees, dormitory charges, daily meals, and essential school supplies such as uniforms and shoes. However, when rumors emerged that the Ministry of Social Affairs had allocated Rp 700,000 for a pair of shoes, the public once again questioned how the government manages procurement for its priority programs.