House Renovations for People’s School Students
When people hear about People’s Schools, housing renovations are probably not the first thing that comes to mind. Public discussions have largely centered on classrooms, dormitories, teachers, and the program’s potential impact on educational access. Yet the government is now planning to renovate 10,000 houses belonging to parents of People’s School students through the Housing Stimulus Assistance Program (BSPS), a joint initiative between the Ministry of Social Affairs and the Ministry of Housing and Settlements.
Perpres AI is not enough
Indonesia is finally moving toward regulating artificial intelligence. Yet the government’s latest preference for a presidential regulation (Perpres) over a dedicated law raises a larger question: Is the country preparing for the AI era, or merely trying to keep pace with it?
The fall of Hotel Sultan
The dramatic scenes at Hotel Sultan (formerly Hilton Hotel) on June 18 were about far more than a dispute over land rights. They represented one of the most significant tests of state authority over strategic assets in post-Reformasi Indonesia.
Amran’s manoeuvre on palm oil
Minister of agriculture Andi Amran Sulaiman informed President Prabowo on Thursday (Jun 18) about his decision to file a police report against 274 palm oil producers, accusing them of manipulating the price of fresh fruit bunches (FFBs) produced by smallholders.
MSCI’s Verdict
MSCI has maintained Indonesia’s emerging market status alongside South Korea in its latest Global Market Accessibility Review but highlighted concerns about information flow and ease of capital inflows/outflows.
More fiscal pressures for 2027 (2)
The State Capital Nusantara (IKN) authority demands additional budget of Rp15.5 trillion next year, more than twice the indicative budget set by ministry of finance. Like other ministries, IKN Authority pointed to President Prabowo Subianto’s commitment to splash Rp48.8 trillion till 2029 to develop the new capital city.
Danantara & Changing dynamics of coal
Indonesia thought it would benefit from production cap of thermal coal, but export revenues dropped 3.8% year-on-year in the first four months of the year instead. Indonesia, at least Prabowo administration, believes controlling export through Danantara will elevate the country’s bargaining power in coal market only to see China and India, two of the largest importing countries, do some substantial adjustments.
The increasingly limited impact from interest rate hikes
Composite index of IDX (IHSG/JCI) and rupiah ended lower grounds respectively Thursday (Jun 18) when Bank Indonesia decided to raise further its benchmark rate by 25 basis points. In span of a month, the central bank has raised its rate by 100 basis points to shore up rupiah and preventing further capital outflow.
Performance-based incentives for SPPGs
The government plans to overhaul the incentive scheme for SPPGs (central kitchens for free meal/MBG program). Previously, all SPPGs were entitled to Rp 6 million per operating day. Going forward, the amount of incentives will be differentiated based on two main factors: the number of beneficiaries served and the facility’s grade. This policy may improve efficiency, but it is not without risks.
More fiscal pressures for 2027
Some policies from President Prabowo, including expansion of the bureaucracy, the military, fishermen’s cooperatives, and Sekolah Rakyat (People’s School), led to demands for substantial bigger budget for 2027.