Is Koperasi Merah Putih the next corruption time bomb?
Over the past month, social media platforms have been flooded with allegations questioning the governance of President Prabowo’s signature Koperasi Merah Putih/village cooperatives program (KDMP). The issue escalated after Jakarta’s chapter of the Indonesian Nationalist Student Movement (GMNI) formally submitted a complaint to the Attorney General’s Office alleging potential irregularities worth Rp112 trillion.
The end of the honeymoon?
Only a few months ago, President Prabowo Subianto enjoyed one of the highest approval ratings ever recorded for a newly elected Indonesian leader. Surveys by Indikator Politik and Poltracking consistently placed public satisfaction between 72 and 80 percent.
The Squeezed Middle Class
Pertamina’s decision to raise non-subsidized Pertamax gasoline price by 32% will clearly hurt middle income group, main driver of household consumption, just hours after Bank Indonesia revised up its benchmark rate by 25 basis point.
The 32% spike of Pertamax
Touted as shock absorber for middle class, the state oil and gas company Pertamina finally lifted the price of non-subsidized gasoline Pertamax (RON 92) as much as 32% from Rp12,300 to Rp16,25o per litre effective today (Jun 10). The decision might be expected to ease pressures on the compensation costs eventually charged by Pertamina to the State.
Bottoming out or a dead cat bounce?
Rupiah gained 1.1% Tuesday (Jun 9) because of sudden hike of BI Rate by 25 basis point and depreciation of US dollars against global currencies. Composite index of IDX (IHSG/JCI) also recovered 7.57% even when foreign investors continued ‘sell Indonesia’. Have the stocks and rupiah bottomed out or just a dead cat bounce?
Another BGN controversy
As the Attorney General’s Office continues its investigation into three dismissed BGN leaders, another controversy linked to the Free Nutritious Meals (MBG) program has come to light. A businessman from Sukabumi, Munjayin, is demanding clarity over Rp 218.25 billion he claims to have paid under an agreement to take over the management of 97 MBG “pioneer kitchens” across Indonesia.
Fiscal sustainability: Cash-flow issues
Financial report of state electricity utility PT Perusahaan Listrik Negara (PLN) for full year 2025 revealed the ugly truth about the State’s cash-flow issue. A public hearing between the House of Representatives (DPR) and governors/regents on Monday (Jun 8) confirmed the cash-flow issue from different angle.
From free meals to landfills: How many poblems should the military solve?
Recent reports suggest that the Indonesian Military (TNI), particularly the Army, will be involved not only in waste cleanup operations but also in the revitalization of landfills and the construction of modern waste-management facilities in several regions. The initiative follows a pattern that has become increasingly visible under the current administration.
Plain packaging and the right to know
Indonesia is once again debating a proposal that would require plain packaging for vape products. The stated objective is familiar: reduce the attractiveness of nicotine products, particularly among young people, by removing logos, colors, and other branding elements from packaging. If a product is considered dangerous enough to lose its brand identity, why is it still legal to sell in the first place?
Questioning Danantara’s financials
Danantara, which was initially expected as a sovereign wealth fund, is said to issue global bonds worth up to US$5 billion. Little that we know what Danantara will do with proceeds from the global medium term notes (MTN) amidst questions about funds raised from previous rounds of Patriot Bonds and MTN.