Policy
President Prabowo resolves Sumatra islands dispute in Aceh's favor
President Prabowo Subianto has ruled that the four contested islands in northern Sumatra will fall under the administrative jurisdiction Aceh Province in a decisive move to resolve a prolonged territorial dispute.
Indonesia weighs 1956 law, Helsinki Accord to resolve Aceh–North Sumatra dispute
The Ministry of Home Affairs is considering invoking Law No. 24/1956 and the 2005 Helsinki Peace Agreement as legal and political references in the ongoing territorial dispute between Aceh and North Sumatra over four contested islands.
Indonesia’s external debt reaches US$431.5 B in April, driven by public sector growth
The Indonesian Central Bank (BI) reveals that the country’s external debt stood at US$431.5 billion (Rp7,029 trillion) as of April 2025, reflecting an 8.2 percent increase year-on-year (YoY) and showcasing a higher growth rate compared to 6.4 percent YoY recorded in March.
Govt to sanction industrial tenants for Greater Jakarta’s air pollution
The Ministry of Environment and Forestry (KLH) is preparing to issue mandatory administrative sanctions against dozens of companies operating within two industrial areas in North Jakarta and Bekasi Regency for their contribution to deteriorating air quality in Greater Jakarta area (Jabodetabek).
Debate erupts over giant sea wall project in Java
President Prabowo Subianto’s plan to construct a 500-kilometer-long Giant Sea Wall along Java’s northern coast − intended to mitigate the devastating effects of tidal flooding (banjir rob) − has sparked heated debate across the country, with environmentalists, coastal communities, and urban planners arguing the wall could do more harm than good.
World Bank poverty line revision classifies 68.3 percent of Indonesians as poor
The World Bank has introduced a new global poverty threshold for upper-middle-income countries (UMICs), classifying Indonesians earning below US$8.30 (about Rp135,000) per day in 2021 PPP per month as poor and therefore suggesting 68.3 percent of the country’s population falls under the poverty line.
Without clear funding scheme, investors will "smile, nod, then flee”: Sri Mulyani
Minister of Finance Sri Mulyani Indrawati has highlighted a critical gap in Indonesia’s infrastructure development − the lack of credible funding plans −which she says is the main reason private investors remain hesitant to engage in large-scale national projects.
Aceh protests transfer of disputed islands to North Sumatra
The Ministry of Home Affairs has sparked controversy following a recent decision to reclassify four disputed islands, Mangkir Besar (also known as Mangkir Gadang), Mangkir Kecil (Mangkir Ketek), Lipan, and Panjang, from Aceh province to North Sumatra.
Indonesia pushes green mobility with new incentives for commercial vehicle industry
In an effort to revive the national automotive market, which has been under pressure in recent years, the government is ramping up its support for eco-friendly vehicles by providing incentives not only for electric and hybrid cars, but also including the commercial vehicle segment into its list of recipients.
RI downgrades clean energy ambitions in new RUPTL, bets big on fossil fuels
Indonesia’s newly released electricity supply roadmap (RUPTL) 2025–2034, outlines a stark pivot back to fossil fuel reliance, undermining previous clean energy goals and raising concerns among environmental analysts and energy transition advocates.
Taxing landed houses will hurt middle-class dreams: Expert
An economist has criticized a recent proposal to increase taxes on landed houses (rumah tapak) as the policy could crush the housing aspirations of Indonesia’s middle- and lower-income citizens.
“Chromebook” procurement skirts legal direction: AGO
The Attorney General’s Office (AGO) said that the Rp 9.98 trillion (US$613 million) Chromebook procurement project at the then Ministry of Education, Culture, Research, and Technology (Kemendikbudristek) between 2019 and 2022 deviated from initial legal recommendations provided by the Office of Junior Attorney General for Civil and Administrative Affairs (Jamdatun).