Fiscal sustainability & PLN’s financials
State electricity utility PT Perusahaan Listrik Negara (PLN) has just released full year 2025 financial statement, where it posted net profit of Rp7.01 trillion, collapsed 67% from 2024 despite substantial increase in electricity subsidy and cost compensation payment from the State Budget.
Market corrections & the scapegoats
Composite index of IDX (IHSG/JCI) crashed 4.2% Friday (Jun 5), while rupiah weakened further to Rp18,130 per US dollar in some banks. Pretty much as predicted, government’s supporters blamed foreign investors/powers behind the corrections.
Rewriting the rules, but keeping the same mentality?
Government’s PR agencies/influencers/economists boasted the establishment of Danantara’s DSI to control export of coal, palm oil and ferro alloys as an act of rewriting the rules. How many times Prabowo writing new rules but leading to the same old results?
Mineral Exchange?
The government’s plan to establish a National Mineral Exchange is being presented as a bold step toward economic sovereignty. The argument is simple: Indonesia is one of the world’s largest producers of nickel and other strategic minerals, yet prices are often discovered and traded through foreign exchanges in Singapore or elsewhere. Why should a resource-rich country remain a price taker?
Patriot Bond II, Merah Putih Bond
We first published an article about Patriot Bonds II in early December 2025 quoting some conglomerates approached by the government/Danantara. Given tight State budget, Danantara will eventually issue new series to indirectly finance ‘public/government programs’.
Major Groups to Watch
Given global economic uncertainties and series of controversial policies issued by Prabowo administration, most major business groups in the country might opt to wait-and-see, avoiding making major investment decisions. Some, however, continue to expand.
Where’s the bottom? (2)
Composite index of IDX (IHSG/JCI) pared some losses Thursday (Jun 4) and ended lower by 1.71% as foreign investors continued dumping Indonesian equities. Rupiah, meanwhile, was firm above psychological level Rp18,000 per US dollars.
People’s Schools: Under the radar
Talking about fiscal management, in recent weeks, public debate has been fixated on the MBG and the controversies surrounding it. Amid this intense scrutiny, the People’s School (Sekolah Rakyat) program has continued to expand under the radar, despite being another flagship initiative of the Prabowo Subianto administration backed by a substantial budget. It is worth asking: How far has the program progressed, and what issues deserve closer attention in the years ahead?
The real risk behind Grab’s exit rumor
A rumor rarely shakes a market unless it touches a deeper anxiety. That is precisely what happened when startup community account Ecommurz published a series of posts suggesting that Grab was reportedly considering a partial drawdown and even a potential exit from ride-hailing market following the government’s plan to cap platform commissions at 8 percent.
Taxing the digital giants
Indonesia is once again revisiting the idea of taxing foreign digital platforms through the concept of Significant Economic Presence (SEP). The proposal appears reasonable on its face: if global technology companies generate substantial revenues from users, why should they escape corporate income tax merely because they lack a physical office in the country?