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Hello reader,

Apologies for the 1-hour delay. Let’s just say internet service providers can suck it.

Today, we’re back to talking about Nusantara after it seemed like the government had abandoned the capital city project. It’s still alive, after all, with plans for more development next year. More on that below.

Until tomorrow!

Cheers,

Andra

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Law/Politics  

• Minister of Cooperatives Budi Arie Setiadi, implicated in a South Jakarta District Court indictment for allegedly receiving a 50% cut in an online gambling mafia case, dismissed the claims as “old, broken record” lies aimed at tarnishing his reputation. The Jakarta Metro Police case involves four defendants charged for managing gambling websites, with Budi Arie allegedly linked to recruitment for data collection and receiving IDR 8 million per website. Budi denied protecting gambling sites, claiming he aggressively combated them during his previous stint as Communications Minister, with no evidence of funds received.

• Iwan Setiawan Lukminto, Chief Commissioner of textile giant Sritex, was arrested in Solo, Central Java yesterday for alleged corruption involving IDR 3.6 trillion in loans from three regional banks and one state bank, with additional private bank credits under scrutiny. The Attorney General’s Office (AGO) is probing whether Sritex received these loans when financially sound or nearing bankruptcy, examining collateral adequacy and compliance with lending procedures. Sritex was declared bankrupt by the Semarang Commercial Court on October 21, 2024, for failing to meet creditor obligations, nullifying a 2022 debt restructuring agreement. The company, owing IDR 32.6 trillion, ceased operations on March 1, 2025, and has filed for cassation.

• The official X account of the General Election Commission (KPU) was hacked early today, with unauthorized posts including “INDONESIA WILL BE IN TOTAL DARKNESS”, as well as comments on a certain diploma controversy. KPU Commissioner Idham Holik confirmed the foreign content was removed by the KPU’s PR team, and the account has been restored.

• Police arrested six suspects for distributing pornographic and child-exploitative content via the Facebook groups “Fantasi Sedarah” and “Suka Duka,” following raids in West Java, Central Java, Lampung, and Bengkulu. MR, the group admin, created “Fantasi Sedarah” in August 2024, with 402 images and seven videos found on his phone. Others produced, stored, and sold child pornography. Facing up to 15 years in prison and IDR 6 billion fines, the suspects’ actions prompted Meta to shut down 30 similar sites. The case, spurred by public outcry and child protection advocates, revealed four child victims. Police are probing related groups.

• The Indonesian Child Protection Commission (KPAI) warned of a trafficking scheme targeting children with job offers as domestic workers (PRT), only to exploit them in prostitution. KPAI Chair Ai Maryati Solihah, speaking at a parliamentary hearing today, highlighted that children are lured with domestic PRT jobs, then trapped in inaccessible locations for sexual exploitation. KPAI data from the past three years up to 2023 recorded 303 cases of child exploitation, including underage PRTs. Ai proposed amending the Domestic Workers Protection Bill (RUU PPRT) to set a minimum working age of 18 for PRTs to curb this abuse.

• An American citizen was charged by the Directorate General of Immigration for producing and selling pornographic videos in Bali, distributed via X and Telegram. Arrested on March 25 at Ngurah Rai Airport while attempting to leave for Kuala Lumpur, the suspect allegedly recruited local Indonesian women as co-stars at nightlife venues. However, the focus remains on his immigration violation, carrying up to five years in prison and a IDR 500 million fine. A hard disk seized from the suspect contained hundreds of pornographic videos.

Business/Economy

• It’s been a while since we heard anything about Nusantara’s development. Alas, President Prabowo Subianto said work will continue, as outlined in the 2026 budget. The Nusantara Capital City Authority (OIKN) is allocated IDR 5.05 trillion in the budget, while the Ministry of Public Works and Housing (PUPR) is set to receive IDR 70 trillion for infrastructure, including IDR 29.84 trillion for connectivity, IDR 18.83 trillion for water resource resilience, and IDR 13.43 trillion for strategic infrastructure, much of which supports Nusantara’s roads, water supply, and civil servant housing.

• Bank Indonesia’s Board of Governors lowered its benchmark interest rate by 0.25% to 5.5%, as announced by Governor Perry Warjiyo today. The deposit facility rate was cut to 4.75% and the lending facility rate to 6.25%, both by 0.25%. Warjiyo stated the decision aligns with monetary policy to maintain inflation within the 2.5% ± 1% target for 2024 and 2025 while supporting sustainable economic growth. BI said it will continue monitoring inflation, rupiah exchange rates, and growth prospects to assess further rate cut possibilities.

• Malaysian oil giant Petronas is intensifying its upstream investments in Indonesia, operating blocks since 2000 and currently producing 20,000 barrels of oil equivalent per day (boepd). The company said it’s focusing on projects in East Java, particularly the Ketapang Block (offshore), where it has produced 8,080 barrels of oil and 35 million cubic feet of gas daily since 2015, securing a 20-year contract extension. Petronas plans to drill two development wells in Ketapang to sustain output, supporting Indonesia’s energy security, especially for Java and Bali’s electricity needs.

• The Danantara sovereign wealth fund is set to sign joint fund agreements with Japan, China, and Malaysia within 2–3 weeks, as announced by CEO Rosan Roeslani today. Two other countries are in discussions. This follows a joint fund deal with Qatar Investment Authority, valued at US$4 billion with Danantara and Qatar each contributing US$2 billion, primarily for Indonesian investments in downstream industries, health, digital economy, and renewable energy, though open to other regions. Rosan highlighted strong foreign confidence in Indonesia, evidenced by growing investment interest, with additional parties exploring similar joint funds, though details remain under negotiation.

• Flag carrier Garuda Indonesia addressed rumors of a potential capital injection from Danantara in a disclosure to the Indonesia Stock Exchange yesterday. President Director Wamildan Tsani stated that any corporate actions, including funding decisions, are under the authority of the government, which holds 65% of Garuda’s shares, and other stakeholders. Bloomberg reported early-stage talks with Danantara, with no agreement or funding amount finalized. Garuda posted a loss in 2024 after two profitable years, driven by post-COVID passenger growth, and faces financial strain with US$1.4 billion (Rp22.9 trillion) in debt exceeding assets as of December 2024. 

Everything Else 

• Ibrahim Sjarief, husband of celebrated journalist Najwa Shihab, passed away yesterday in Jakarta due to a stroke and subsequent brain hemorrhage, as confirmed by Najwa’s assistant. The news was shared by Minister of Communications and Digital Meutya Hafid, a former colleague of Najwa. Ibrahim’s body was laid in state in Cilandak, South Jakarta, followed by a funeral at Jeruk Purut Public Cemetery. Najwa is widely regarded as one of the country’s most prominent contemporary journalists due to her impactful career and fearless approach to journalism, particularly for sharp, incisive interviews with high-profile figures.

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