Jinping’s ‘love letter’ to Prabowo
China Chamber of Commerce Indonesia (CCCI) has sent a formal letter to President Prabowo, highlighting their concern on some policies, particularly in natural resources sector. Indonesian cabinet members immediately defended the policies, asking Chinese investors to not worrying too much.
MSCI & Rupiah (3)
Pretty much as predicted, Indonesian shares kicked out from MSCI Global Standard Index and Small Cap Index were under selling pressure, contributing to nearly two percent fall of IDX composite index (IHSG) and the new record low of rupiah Wednesday (May 13). But, the government should worry more about the country’s investment climate beyond MSCI indexes.
Selective compliance in digital regulation
As the government pushes platforms to improve protections for minors online, social media companies have largely moved toward compliance. E-commerce platforms, however, are asking for negotiation, flexibility and gradual implementation. On the surface, such requests may appear reasonable given the technical and operational complexities involved. But politically and legally, the situation raises a deeper concern: will the government apply the same standards to all digital industries, or will economic power determine how regulations are enforced?
Ibrahim’s verdict becomes Nadiem’s greatest legal threat
The conviction of Ibrahim Arief in the Chromebook procurement scandal may have targeted a technology consultant, but politically and legally, the ruling represents a far bigger threat to Nadiem Makarim, the former education minister now under house arrest amid the ongoing corruption investigation.
Telkom’s weaker performance
Telkom (TLKM), the largest telco player, finally released its full year 2025 financial report. The company recorded net profit of Rp17.8 trillion, down 20.5% from 2024. Second largest player Indosat (ISAT), on the other hand, posted 12% growth in net profit to Rp5.5 trillion. Why?
The inclusion of the 3B group in MBG coverage
The National Nutrition Agency (BGN) now requires all Nutrition Fulfillment Service Units (SPPG) to expand the beneficiary lists to include the 3B groups (pregnant women, breastfeeding mothers, and toddlers) within their respective service areas. The deadline is two weeks, and non-compliance may lead to temporary suspension of an SPPG. The challenge, however, is that this is not simply a matter of expanding coverage. It requires readjustment of the MBG program’s existing design.
MSCI & Rupiah (2)
MSCI yet to downgrade Indonesia from emerging market status to frontier market, but kicking out six securities from the Global Standard Index and 13 stocks from the Global Small Cap Index feels like a downgrade.
MSCI Rebalancing: More Indonesian stocks kicked out
MSCI has announced the list of securities added and deleted from its Global Standard Index and Global Small Cap Index. Indonesia, Malaysia, Taiwan, and Japan are the biggest losers in the review.
Those continue to expand
Rupiah depreciated 6% in the past twelve months, but Kerney’s foreign direct investment (FDI) confidence index for Indonesia dropped to 13, way below Thailand (6) and Malaysia (7), which improved significantly.
KoinP2P case
Prosecutors from the Jakarta High Prosecutor’s Office named three top executives of KoinP2P as suspects in an alleged corruption case tied to the disbursement of approximately Rp600 billion in loans through a cooperation scheme with state-owned lender Bank Rakyat Indonesia (BRI).