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.
Prabowo & Series of Pressures on Salim Group
Attorney General’s Office (AGO) confirmed the examination of executives from Maybank Indonesia and Salim Ivomas Plantation (SIMP) in palm oil export corruption. Last week, IDX-listed SIMP was unable to provide clarification on the investigation’s relation with its transactions and export activities.
The questions behind North Sumatra’s vape ban
North Sumatra’s decision to prohibit the use of vape products among civil servants and regional state-owned enterprise employees may appear, at first glance, to be a local administrative matter. In reality, it raises a much larger question about the future of policymaking in Indonesia: what happens when regional governments begin regulating legal products more aggressively than the central government itself?
Raising the Hajj deposit
The proposal to increase initial Hajj deposit from Rp25 million to Rp35 million has reignited a familiar debate: how to sustain the country’s Hajj financing system without closing the door on millions of aspiring pilgrims. While the idea may make sense from a financial management perspective, it risks treating a symptom rather than addressing the root cause of Indonesia’s Hajj problem.
New property & hospitality king: Sudjiono Timan
After series of major transactions in resources sector, former infamous investment banker Sudjiono Timan, once a fugitive in corruption case, has emerged as a new property king through acquisition of some high-profile assets in Jakarta and Bali Island in the past few years.
Defending rupiah
Pretty much as predicted, the Fed kept funds rate unchanged at 3.5%-3.75% Wednesday (Jun 18), lifting the Dollar index to 100.3, the highest since March. US Dollar gained against most major currencies and rupiah.
Medco Energi vs Energi Mega
Shares of oil and gas companies Medco Energi Internasional (MEDC) and Energi Mega Persada (ENRG) ended mixed Wednesday (Jun 17) as crude oil moved in narrow range pending clarity in the US-Iran peace deal.
Profit taking & domestic issues
Composite index of IDX (IHSG/JCI) paired losses to close lower by 0.55% Wednesday (Jun 16) as investors realized short-term gains in some stocks. As global pressures eased off, investors returned to domestic issues, including export control through Danantara and the planned relaxation of coal production cap.
A new voice in student politics—or a new political instrument?
This week, the alliance made headlines after alleging that a retired three-star general, identified as Lt. Gen. (ret.) Setyo Sularso, was linked to opposition against the government’s Free Nutritious Meals (MBG) program. At the same time, the group expressed support for the continuation of MBG and warned against what it described as the politicization of student activism.