“Not only must we be free of rice imports, but we also bee free of all food commodity imports,” Jakarta Post quoted the speech of President Prabowo in a plenary cabinet meeting on Monday. Can anyone brief the president that we can probably stop importing rice but will continue to rely on import of other food commodities because of climatology issues and changing lifestyle?

Pretty much as predicted, ministries, including those newly established by President Prabowo, have in orchestra demanded substantially bigger budget from the already approved for 2025. The combined additional budget from 15 ministries have reached more than Rp200 trillion or more than 20% of the amount approved in the 2025 State Budget. 

Hashim Djojohadikusumo, brother of president Prabowo Subianto, said that Anggito Abimanyu will become minister of State revenues. Anggito’s position as one of three deputy ministers of finance, he said, is only temporary, and that the ministry is needed to boost revenues and reduce leakages of State funds. 

Each day we’re bombarded with different kinds of numbers related to Prabowo’s free meal program. The last is the Rp10,000 per meal budget announced by Prabowo, which is claimed enough. Given chaotic planning, we can imagine problems in the execution of the program, because the government pays too much attention to quantitative target, not quality of the program. 

Indonesia welcomed 1.19 million foreign ‘tourists’ in October 2024 to make a total of 11.6 million in the first ten months. Vietnam, meanwhile, welcomed 1.42 million tourists in the same month to make a total of 14.1 million in ten months. The gap is actually bigger because 13% of ‘tourists’ visiting Indonesia are those moving in-out of the borders with Timor Leste and Malaysia (Kalimantan). 

The Business Competition Supervisory Commission (KPPU) recently announced that it has completed a study on the entry of Low Earth Orbit (LEO) internet service providers into the country and its impact on business competition in Indonesian internet service providers. We all know who is meant in this study: Starlink. The presence of Starlink in Indonesia has indeed caused a stir with very different responses, users feel excited, competitors feel pressured. How could it not, the services offered by Starlink can even reach the heart of Papua, something that other internet service providers cannot do. Thus, in the midst of the excitement, concerns arose about unfair business competition.

Shares of MD Pictures or MD Entertainment (FILM), controlled by the family of Manoj Punjabi, ended lower by 1.45% to Rp3,410 on Friday (Nov 29) to make a market capitalisation of Rp36.5 trillion. It has dropped significantly from August when we reviewed the stock, but needs further correction despite acquisition of NET TV.

Shares of shipping company PT Samudera Indonesia (SMDR) Tbk ended lower by 0.7% to Rp282 last Friday (Nov 29) to make a market capitalisation of Rp4.7 trillion, not even half of the company’s equity (Rp11.4 trillion as at September 30, 2024).

BRMS Overshooting?

Shares of Bumi Resources Minerals (BRMS), a gold miner, ended higher by 4.6% to Rp414 last Friday (Nov 29), while peer Merdeka Copper Gold (MDKA) closed lower by 4.7%. BRMS, co-owned by Bakrie and Salim Group, is now worth Rp62.8 trillion, four times equity (Rp15.6 trillion as at Sept 30, 2024). 

More ministries and government agencies are asking additional budget next year, which will be seen clearer once the 2025 State Budget’s amendment is proposed to the House of Representatives (DPR). While the plan to increase Value Added Tax (VAT) from 11% to 12% sparked nationwide protest, energy & mineral resources minister Bahlil Lahadalia said drivers of Ojol (app-based ride-hailing motorcycle taxi) will not be allowed to use subsidised gasoline.