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The Star
4 days ago
- Business
- The Star
Indonesia's President Prabowo aims to go after illegal mining, oil palm plantations; speed up free-meal scheme
JAKARTA: Indonesian President Prabowo Subianto promised a broad crackdown on illegal mining and oil palm plantations, while accelerating his flagship free-meal programme in closely watched twin speeches on Friday (Aug 15), as he laid out his vision for South-East Asia's biggest economy. Unveiling a 3,786.5 trillion rupiah (S$300 billion) government budget for 2026, or 7.3 per cent higher than the latest estimate for 2025 spending, he promised to continue spurring downstream industries in critical minerals such as nickel and copper – key ingredients in renewable projects – to allow Indonesia to benefit from higher export proceeds. The budget proposal – with a deficit forecast at 2.48 per cent of gross domestic product – is based on an economic growth target of 5.4 per cent, an inflation rate at 2.5 per cent and the rupiah trading at 16,500 per US dollar on average for 2026, along with several other indicators. Prabowo, 73, in both speeches also outlined other priorities for his five-year term till 2029. These included strengthening recently established sovereign wealth fund Danantara; providing ample financing support to farmers, fishermen and villagers through setting up 80,000 cooperatives nationwide to ensure they obtain the best prices for their produce; expanding edible crops to improve food self-sufficiency; and establishing 20 'gifted schools' for the top 1 per cent of Indonesia's students. His State of the Nation speech in the morning was his first as the country's leader. The budget presented later that afternoon in Parliament was the first proposal developed by Prabowo's administration after he took office in October 2024. The 2025 budget was prepared by his predecessor, Mr Joko Widodo. The speeches came as Indonesia, like other economies, faces headwinds from tariffs being imposed by the United States on imports. The US had in July set a 19 per cent tariff on goods coming from Indonesia, while certain commodities not available in the US, such as processed nickel, could be eligible for a lower levy. Dr Ninasapti Triaswati, an economist with the University of Indonesia, said focusing on nickel processing may not boost employment as the sector relies on fewer workers. 'We have to do more to drive the sectors that absorb a lot of labour, such as agriculture.' Prabowo, in his speeches, pointedly did not renew his commitment to the new Indonesian capital Nusantara, unlike in speeches soon after taking office where he pledged to complete the East Kalimantan project. Adding to uncertainty over his stance on the new capital, Prabowo is slated to host Indonesia's 80th independence day celebrations on Aug 17 in Jakarta. Nusantara is a pet project of Widodo's. Both Prabowo and Widodo celebrated independence day in Nusantara in August 2024, but ties between the two have since frayed. The government has saved about 300 trillion rupiah by slashing 'expenses which are prone to corruption and manipulation', including unnecessary overseas junkets, excessive meetings and other non-essential expenditures. 'We will not hesitate in unravelling major corruption cases,' the President said in his budget announcement. In his State of the Nation address earlier in the day, Prabowo said the crackdown on illegal mining and oil palm plantations is part of the government's move to curb corruption. On illegal mining, he noted that there are 1,063 illegal mines – those operating without proper mining licences – in the country and appealed to lawmakers and political parties for their support for government action. He said those behind these illegal mines include very influential individuals, and active as well as former military or police generals. 'There is no reason the government wouldn't take action for the sake of the people,' Prabowo said, prompting a standing ovation from the House. He said a survey found that palm plantations on 3.7 million hectares – or nearly twice the size of Johor state in Malaysia – were operating in violation of the law. Indonesia is the world's biggest producer and exporter of palm oil, with the main palm growing areas in Sumatra and Kalimantan. Prabowo added that five million hectares of oil palm plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summonses from auditors. 'We will ensure that the Indonesian people will not fall victim to greedy economics,' Prabowo said, with the government having already seized 3.1 million hectares of illegal palm plantations with the help of the military. 'We have used the military to accompany the teams that took over the plantations because there often is resistance,' he said. Responding to critics over the free-meal programme for students and pregnant mothers, he said: 'Our goal... is to be free from poverty, free from hunger, free from suffering.' Some 20 million people are being fed under the scheme, with a final target of 82.9 million. Indonesia launched the ambitious meal programme in January to combat stunted growth due to malnutrition, a key election promise by Prabowo, but there have been concerns over the sustainability of such a scheme in the long term. Professor Wibisono Hardjo Pranoto, an economist at Surabaya University, said a budget deficit is acceptable as long as the spending is planned and the money is used for productive purposes. 'Spending more than the revenue number is fine. We need... to do effective allocation of the funds so we can service the debts,' he added. - The Straits Times/ANN
Asia News Network
29-07-2025
- Politics
- Asia News Network
Minister kicks off public discussion on Indonesia's controversial new history books
July 29, 2025 JAKARTA – Culture Minister Fadli Zon has reassured the public that the forthcoming history books 'are not hiding anything' as he launched a public campaign on the project despite concerns past human rights abuses may be whitewashed. Fadli held the first round of discussion on Friday at the University of Indonesia's (UI) main campus in Depok, West Java, and said in his remarks there that the new history books were aimed at taking an 'Indonesia-centric' perspective in updating the country's history. 'This forum is a kickoff for public discussions to show that we are not hiding anything in our history. We can debate it, but we cannot simply leave our history unwritten,' he said in the livestream event. Deflecting concerns of being a rushed project, the minister said the ongoing efforts to rewrite the country's history is '26 years too late'. He noted that the last state-sanctioned revision took place at the start of the Reform era in 1999. The upcoming 10-volume publication will include everything from the latest archaeological findings on early civilizations in the archipelago up to the end of former president Joko 'Jokowi' Widodo's second term in October of last year. The project involves 112 historians from 34 state universities across Indonesia, whom Fadli described as the 'maestros' of their respective fields. 'History cannot be written carelessly. If it is written by an activist, the result will be different. If it is written by a politician, it will also reflect differing political interests. That is why history must be written by qualified historians,' he said. The project has come under fire from activists and independent historians, who fear that the government might be looking to take a revisionist approach by emphasizing only positive legacies of past presidents, including Soeharto, whose authoritarian rule was marked by widespread human rights abuses and systemic corruption. Fadli has also come under heavy criticism for his repeated dismissal of the mass rapes that took place during the May 1998 riots. While Fadli did not provide a specific publication timeline, he said he hoped the books would serve as a 'gift' for the nation's 80th Independence Day on Aug. 17. Restu Gunawan, director general for the protection of culture and tradition at the Culture Ministry, said that, in addition to the event at UI, three more discussions are set to follow in the coming weeks in Lambung Mangkurat University in South Kalimantan, followed by Padang State University in West Sumatra and at Makassar State University in South Sulawesi. 'The books are currently in the editing stage by the volume editors. Hopefully, public input from these forums can help fill in any remaining gaps before it moves on to the general editor for final refinement,' Restu said.
Nikkei Asia
07-07-2025
- Business
- Nikkei Asia
Indonesia's growing exodus of skilled talent worries local industries
JAKARTA -- Hirdan Radityatama Putra Laisa, a 28-year-old Indonesian working in Tokyo at the global division of a Japanese human resources company, decided to work in Japan after graduating from Indonesia's top university. "If I work in Indonesia," he explained, "I cannot save money, especially with the recent rise in the cost of living." The University of Indonesia graduate makes 6 million yen ($41,600) a year, which he says is almost six times the salary a worker with the same educational level and skills would earn in Indonesia.
The Star
22-06-2025
- Business
- The Star
Jakarta welcomes new age with global ambitions
JAKARTA: Jakarta will mark its 498th anniversary this weekend with a renewed vision of transforming into a global center for trade, services, finance and business, even as the city faces persistent questions about its livability and its impending loss of capital status. This year's celebration adopted the theme 'Jakarta, a Global and Cultural City', reflecting the city's long-term ambition to evolve into a major international metropolis once it formally relinquishes its role as Indonesia's capital. The transition will become official when President Prabowo Subianto issues a decree naming Nusantara, a US$32 billion megaproject in East Kalimantan that was initiated by his predecessor Joko 'Jokowi' Widodo, as the new seat of government. The House of Representatives has passed legislation granting Jakarta special administrative status after the relocation, ensuring that the city remains the country's primary economic engine and a global hub for trade, finance and service. Even without its capital title, many believe Jakarta is poised to thrive; retaining its economic clout and playing a central role in driving national growth. 'Jakarta is still very relevant. It remains the country's economic powerhouse. Its contribution to the national economy is too significant to ignore,' Aditya Perdana, a lecturer at the University of Indonesia (UI), told The Jakarta Post on Friday. Home to approximately 11 million people, Jakarta is the most densely populated region in the country and contributes nearly 17 percent to the national gross domestic product (GDP). A worker walks in front of the State Palace on Nov. 10, 2024, at the government offices complex in the Nusantara Capital City (IKN) in North Penajam Paser, East Kalimantan. President Prabowo Subianto has said that within the next five years, he will make the new capital city the center of government political activities, where most of his administration's executive, legislative and judicial activities will take place. - Photo: Antara file Jakarta Governor Pramono Anung, who took office in February, has emphasised that his administration will not 'wind Jakarta down', but instead lay the foundation for the city to emerge as an innovation-driven, globally competitive metropolis. Last week, the Jakarta administration launched an eight-volume blueprint that outlines a comprehensive strategy to place the city among the world's top 20 global cities by 2045, a move that Pramono described as a 'critical milestone' in Jakarta's transformation. As part of this vision, the administration is also preparing to roll out the Jakarta Collaborative Fund (JCF), an initiative aimed at boosting financial independence by reducing reliance on conventional revenue sources such as taxes, levies and dividends. 'I believe Jakarta has the potential to become not just a global city, but also the leading gateway of Asean,' Pramono said last week at the 2025 Jakarta Future Festival (JFF). "I invite all stakeholders to help shape Jakarta's future as a global city that upholds public welfare and shared values,' he added. While Jakarta pushes forward with its post-capital vision of becoming a global city, uncertainty remains over whether President Prabowo will fully commit to the relocation. 'If, say, in 2026 or 2027, the president concludes the funds aren't sufficient, he could easily shelve the relocation,' Aditya said. 'The project hinges entirely on political will and financial feasibility.' Despite its strong ambitions, the public cautions that Jakarta must first tackle its long-standing issues, such as chronic traffic congestion, seasonal flooding, worsening air pollution and inefficient waste management, if it hopes to achieve its global city aspirations. Nineteen-year-old Kusnadi who lives in North Jakarta, an area sinking up to 15 centimeters a year and home to Indonesia's busiest port, said coastal flooding and deteriorating air quality continue to disrupt daily life. 'Almost every day, I feel irritated by the pollution from the roaring trucks,' he told the Post, adding that he hopes the government will adopt concrete solutions to address this. Wahyu Andre Maryono, who lives near the refuse-derived fuel (RDF) plant in Rorotan, North Jakarta, echoed similar concerns. The facility has reportedly emitted foul-smelling smoke, leading to dozens of cases of respiratory and eye infections in children. 'It's a cruel irony. As we celebrate Jakarta's rise as a global city, [this RDF plant] risks reducing the air quality and threatening residents' health,' Wahyu said on Thursday. - The Jakarta Post/ANN
The Star
05-06-2025
- General
- The Star
Jakarta Police under fire for criminalising student paramedics
JAKARTA: The University of Indonesia (UI) and several civil society organisations have condemned the police's alleged use of excessive force and criminalisation of student protesters during the May Day rally in Jakarta last month, describing the actions as an abuse of power that threatens citizens' democratic rights. The criticism was sparked by the controversial naming of UI student Cho Yong Gi as a suspect, despite his role as a medical volunteer at the demonstration. Yong Gi, a philosophy student who was wearing medical attire and carrying first-aid equipment, was reportedly subjected to physical violence before being arrested. In a statement released on Tuesday (June 3), UI's Department of Philosophy expressed deep concern over the incident and pledged to provide full support to Yong Gi during the legal process. 'Arresting participants who were working in humanitarian roles, especially with the use of violence, raises serious concerns about civilian rights, including the protection of medical workers in peaceful demonstrations,' the statement reads. 'We urge the Jakarta police to handle this case objectively and fairly, taking into account our student's position and the humanitarian duties he was performing at the time.' The Jakarta Police have opened investigations into 14 suspects in connection with the May 1 protest in front of the House of Representatives building. The authorities claimed that the protests on May 1 had resulted in a chaotic demonstration and had disrupted public order. After arresting alleged violators, the police named 13 suspects on May 8 and subsequently named one more suspect. Among the 14 suspects are ten protesters and four individuals who served as medical and paralegal volunteers during the rally. 'They are suspected of committing a criminal offence by disobeying orders of intentionally failing to leave after being ordered to do so three times by authorised authorities, as stipulated in Articles 216 and 218 of the Criminal Code [KUHP],' said Jakarta Police spokesperson Sr. Comr. Ade Ary Syam during a press briefing on Tuesday. Meanwhile, UI's Student Executive Body reported in a separate statement that three out of the 14 suspects are the university's students. The student body reported that the demonstration proceeded peacefully until around 4:45 p.m. when police began dispersing the crowd using water cannons and barricades, triggering widespread panic as protesters ran to seek safety. 'During the forced dispersal, our colleagues were dragged away by several police officers and subjected to acts of violence, including being put in chokeholds, punched, kicked and stomped on by the authorities,' read the statement. 'We strongly condemn and oppose all forms of repressive and arbitrary actions carried out by the police against fellow activists. This incident is not an isolated case, but rather part of a broader pattern of repression systematically perpetuated by the state,' it added. Last month, the police also named 16 Trisakti University students suspects for a violent clash during a protest on May 21 to commemorate the reform era. But the police said that they have not issued arrest warrants and would be open to applying a restorative justice approach, Tempo reported. Rights group Amnesty International Indonesia said the recent arrest of May Day protestors reflects the excessive use of state force, and is part of a recurring pattern seen across numerous demonstrations. 'We have consistently called for accountability for this excessive use of force and urged authorities to ensure such incidents do not happen again,' said Usman Hamid, Amnesty's executive director, on Wednesday. His concerns were echoed by Fadhil Alfathan, director of the Jakarta Legal Aid Institute (LBH Jakarta). 'If this legal process continues as it is, we fear it will result in a flawed and unjust trial. Rather than upholding the rule of law, it risks punishing innocent people,' he said. - The Jakarta Post/ANN
