Navy for soybean
On top of the national police’s involvement in corn production, Minister of defense Sjafrie Sjamsoeddin told lawmakers this week that Indonesian Army (TNI-AD) has been tasked to grow corn and rice, while the Navy is responsible for soybean.
More market interventions: Coal and palm oil
Composite index of IDX (IHSG) fell 3.46% Tuesday (May 19) as market participants negatively responded rumour about the government’s plan to takeover export of coal and palm oil (CPO) through a state trading entity.
Layoffs in 2026 (5)
Full impact of rupiah’s downfall and high input costs (energy and raw materials) will likely be seen clearer in the second and third quarter, but many companies have slashed workforce in the first quarter of the year due to falling sales and squeezed margins.
Regulating marketplaces is easier said than done
The government is preparing to regulate marketplace fees through a proposed ministerial regulation aimed at protecting small businesses from rising platform charges. The policy, which includes incentives and potential cuts to marketplace commissions for SMEs, appears politically attractive. After all, millions of sellers complain that selling through digital platforms is becoming increasingly expensive.
Digital state still depends on outsiders
The latest experiment with digital social assistance for 36 million citizens reflects a larger ambition within President Prabowo Subianto’s administration: transforming the state into a fully digital government. Officials speak confidently about integrated databases, AI governance, national data centers and digital public services. Yet behind this ambitious narrative lies a fundamental contradiction. Indonesia is becoming increasingly digital without becoming technologically sovereign.
Indicators to watch
Rupiah declined further to Rp17,713 per US dollar this morning despite statements from central bank leaders that the currency would regain grounds in the coming months and that crude oil retreated from recent high as Trump said he called off a planned military strike on Iran.
Kalbe Farma vs Soho Global
Shares of Kalbe Farma (KLBF) ended lower by 1.2% on Monday (May 18), while Soho Global Health (SOHO) lost 4.71%. These pharmaceutical players came out with diametrical results in the first quarter of 2026.
Bank Mayapada vs Bank Mega
Bank Mayapada (MAYA), controlled by Dato’ Tahir, booked net profit of Rp37 billion only in the first quarter of 2026, not even one-tenth of Bank Mega (MEGA), controlled by Chairul Tanjung, despite the fact that Mayapada is substantially bigger than Mega in terms of total assets. Why?
Deeper corrections
Pretty much as predicted, rupiah depreciated further to as low as Rp17,670 on Monday (May 18), while composite index of Indonesia Stock Exchange (IDX) collapsed around four percent before paring some losses and closed the trading day down 1.85%.
The latest reshuffle in Polri guards nickel business
The latest reshuffle inside the National Police was officially presented as routine institutional rotation. Yet the appointment of five new regional police chiefs across resource-rich provinces reveals something much larger: the growing fusion of security power, economic interests and political consolidation under President Prabowo Subianto’s administration.