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.
Tifico Fiber expands into property
Polyester staple fiber (PSF) manufacturer PT Tifico Fiber Indonesia (TFCO) Tbk, which suffered net loss of US$1.7 million in the first quarter of 2026, has decided to expand into commercial property sector.
Further market corrections
We haven’t seen the bottom. Composite index of IDX (IHSG/JCI) ended further down by 4.52% to 5,342 Monday (Jun 8) as foreign investors continued ‘sell Indonesia’. Rupiah also weakened further, where some banks offered US dollar bank notes above Rp18,200.
Declining forex reserves
Bank Indonesia announced the country’s foreign exchange reserves at US$144.9 billion by end of May 2026, down from US$146.2 billion in the previous month. While enough for 5.5 months of import, remains above international standard (3 months), forex reserves evaporated US$11.6 billion year-to-date.
The abandoned infrastructure development
Infrastructure development was main theme of Jokowi administration. Jokowi tacitly supported Prabowo Subianto’s campaign in 2024 with a hope of continuation in modernizing the country’s public infrastructure. We all know, however, Prabowo administration uses most of resources to support new signature programs like free meal, the village cooperatives, military equipment procurements, People’s school and other populist policies.
Where’s the bottom? (3)
Some banks offered USD bank notes above Rp18,200 this morning, moving closer to the new psychological level (Rp19,000), despite statements from the government, Bank Indonesia, and the House of Representatives (DPR) about ‘sound economic fundamentals’.