Defending rupiah
Bank Indonesia has reduced further the cap to buy US dollars without underlying transactions from US$50,000 to US$25,000. The central bank halved the cap from US$100,000 to US$50,000 last month, but failed to prevent further depreciation of rupiah.
Merdeka Copper’s rights issue
Merdeka Copper Gold (MDKA), co-owned by Saratoga and Provident, has launched a non-preemptive rights (NPR) issue for 2.447 billion shares with expected proceeds of US$434 million. This is one of the largest fund raising in Indonesian capital market so far this year amid growing capital outflow from emerging markets.
Fast refunds, selective capitalism
As Finance Minister introduced Peraturan Menteri Keuangan (PMK) Nomor 28 Tahun 2026, the government framed it as a long-overdue response to one of the private sector’s loudest complaints: slow tax refunds. By accelerating the return of overpaid taxes, the policy promises to improve business liquidity, reduce bureaucratic delays and signal a more business-friendly tax administration. On the surface, it is a reform that seems both rational and necessary.
Layoffs in 2026 (5)
Doll manufacturer PT Combine Will Industrial Indonesia (CWII) has recently gradually dismissed 849 employees from its plant in Sragen, Central Java. The last batch of the dismissal was late last month.
Weaker rupiah & tourism
Weaker currency normally leads to higher growth of tourism. Unfortunately, that’s not the case with Indonesia, at least that’s what happened in the first quarter of the year. The country welcomed 3.44 million foreign tourists in the period, an increase of 8.62% from the corresponding period last year, but the Iran war started to hit the sector in March.
Shoes for People’s School students
Students at the People’s School (Sekolah Rakyat/SR) are exempt from all costs, including tuition fees, dormitory charges, daily meals, and essential school supplies such as uniforms and shoes. However, when rumors emerged that the Ministry of Social Affairs had allocated Rp 700,000 for a pair of shoes, the public once again questioned how the government manages procurement for its priority programs.
Pertamina’s cash-flow & fiscal sustainability?
Brent crude oil soared 5% closer to US$114 per barrel this morning on escalation related to the Strait of Hormuz. That means oil already surged by 89% year-on-year. Indonesian government, by far, has only partially adjusted non-subsidized fuel prices, i.e. Pertamina’s Pertamax Turbo.
Windfall from coal and minerals for fiscal sustainability: Evidence tells a different story (2)
Indonesia generated US$7.4 billion worth of export from thermal coal in Jan-Mar 2026, down 8.4% from the corresponding period last year, presumably due to lower volume from the government’s production cut.
Questioning the MBG National Command Center
The Coordinating Ministry for Food is set to launch the MBG National Command Center this month. Reportedly, the facility does not require a large budget–only an LED screen and a fast internet connection to support its operations. The stated goal is to streamline coordination between ministries, agencies, and all relevant stakeholders.
Coretax and the illusion of digital compliance
Tax reform has found its flagship in Coretax—a sweeping digital platform meant to unify reporting, improve compliance and boost revenue. On paper, it represents the state’s long-awaited leap into modern tax administration. In practice, the experience of millions of taxpayers this year suggests something more troubling: a system that promises digital efficiency but still relies on analog rescue.