TOP NEWS
- Reuters — President Prabowo Subianto’s administration is pressing ahead with its ambitious 8% growth and high-spending agenda despite market turmoil and rating warnings, signaling to investors that fiscal caution will take a back seat to growth priorities even as confidence and capital flows come under strain.
Domestic Politics and Economy
- Tempo — Commission XI Chair Mukhamad Misbakhun said Parliament and the Finance Ministry have begun early, closed-door deliberations on the 2027 state budget at the Supreme Audit Agency (BPK), signalling a proactive effort to align fiscal planning with the macroeconomic framework well ahead of the KEM–PPKF discussions.
- Tempo — Deputy Finance Minister Juda Agung said the government will accelerate early-year social protection disbursements to lift household consumption and push first-quarter 2026 growth toward 5.6 percent, positioning fiscal stimulus as the key driver of purchasing power at the start of the year.
- Reuters — Presidential spokesman Prasetyo Hadi said Indonesia is preparing to contribute up to 8,000 troops to a proposed 20,000-strong multinational Gaza peacekeeping force, while noting that President Prabowo Subianto has been invited to Washington later this month for the first meeting of U.S. President Donald Trump’s Board of Peace.
- Tempo — State Secretary Minister Prasetyo Hadi confirmed that repayment of the Jakarta–Bandung Whoosh high-speed rail debt will be covered by the state budget, underscoring the government’s decision to assume fiscal responsibility for legacy infrastructure financing while Danantara leads ongoing restructuring talks with Chinese lenders.
- The Jakarta Post — Witnesses at a Jakarta court challenged Culture Minister Fadli Zon’s denial of the 1998 mass rapes, warning that dismissing well-documented atrocities from the riots amounts to erasing history and retraumatizing victims and their families as Indonesia continues to grapple with accountability nearly three decades on
- Tempo — State Secretary Prasetyo Hadi has firmly ruled out any cabinet reshuffle ahead of Ramadan, saying the government is fully focused on ensuring a smooth fasting and Eid period through cost-of-living support measures and public safety preparations rather than political changes.
Domestic Politics and Economy
- Tempo — State Secretary Prasetyo Hadi confirmed that President Prabowo has approved plans to build a new 40-storey tower from the ground up in central Jakarta to consolidate key Islamic institutions, saying the project is still in the design stage and intended to improve efficiency and public service, with funding arrangements yet to be finalised.
- Antara — Primary and Secondary Education Minister Abdul Mu’ti has outlined plans to roll out at least one kindergarten in every village as part of Indonesia’s new 13-year compulsory education policy, backed by a Rp14 trillion school revitalisation budget to expand early childhood access and reduce learning gaps nationwide.
- Tempo — Deputy Defence Minister Donny Ermawan Taufanto said Indonesia will soon receive a ¥1.9 billion Japanese grant of three to four fast patrol vessels, strengthening naval surveillance and maritime security without burdening the state budget while deepening defence cooperation with Japan.
- Antara — State Secretary Minister Prasetyo Hadi dismissed speculation about placing the National Police under a ministry, clarifying that the idea originated from comments by Coordinating Minister Yusril Ihza Mahendra, while Police Chief Listyo Sigit Prabowo has said the force would be better positioned directly under the President, underscoring that the government’s priority remains strengthening institutions rather than pursuing structural reshuffles.
Business and Investment
- Antara — Marine Affairs and Fisheries quality chief Ishartini said Indonesia has shipped 1,852 containers of shrimp worth about US$305 million to the United States since late 2025, underscoring strong export momentum backed by strict Cs-137–free certification that meets US FDA and customs standards
