Hello reader,

When his term ends, President Prabowo may well end up being judged on Indonesia’s economic growth. The problem for him is that success in this regard will be held against his own extremely lofty goal of 8%.

The number for 2024 is in, and, while it shows slightly faster economic growth than anticipated, it likely won’t inspire confidence that the country will reach the magic number within a few years. Maybe his budget cuts will help.

Cheers,

Andra

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Law/Politics 

• Indonesians have had enough time to form opinions on President Prabowo Subianto’s cabinet ministers, and the winners are in. A Lingkar Survei Indonesia (LSI) poll ranked Minister of Religious Affairs Nasaruddin Umar as the top-performing minister in Prabowo-Gibran’s first 100 days, with a 92.9% satisfaction rate, followed by Education Minister Abdul Mu'ti (91.5%) and Cabinet Secretary Mayor Teddy Indra Wijaya (90.9%). Finance Minister Sri Mulyani was the most popular minister (68.9%), followed by SOEs Minister Erick Thohir (67.5%) and Infrastructure Minister Agus Harimurti Yudhoyono (62.8%). The survey, conducted from January 20-28, polled 1,220 respondents.

• The Corruption Eradication Commission (KPK) searched the South Jakarta home of Pemuda Pancasila chairman Japto Soerjosoemarno on Tuesday evening in connection with a bribery case involving former Kutai Kartanegara Regent Rita Widyasari. KPK seized 11 cars, cash, documents, and electronic evidence but has not disclosed Japto’s role. Rita allegedly received US$3.3-US$5 million per metric ton of coal from mining firms, with the funds distributed to various parties under investigation. KPK is tracing the money flow and has also searched the home of former NasDem legislator Ahmad Ali.

• Constitutional Court Honorary Council Chairman I Dewa Gede Palguna criticized the revised House of Parliament (DPR) rules allowing parliament to evaluate and recommend the replacement of public officials. He argued that this oversteps DPR’s authority and contradicts legal hierarchy, separation of powers, and checks and balances. Palguna speculated that DPR may have political motives, warning that such actions undermine Indonesia’s legal system. In response, DPR Deputy Speaker Sufmi Dasco Ahmad defended the revision as a clarification of existing oversight functions, denying that it grants removal powers but addresses concerns about officials serving excessively long terms.

• Jakarta Metro Police officers raided a hotel in Karet Kuningan, South Jakarta, on Saturday, arresting 56 men suspected of participating in a same-sex group sex party. Video footage showed officers escorting the men out of the hotel room, their hands tied with white cable ties. Of the 56 detainees, only three—RH, RE, and BP—were named suspects. Police seized evidence, including hotel booking records, contraceptives, and HIV medication. The suspects face charges under Indonesia’s Pornography Law and the Criminal Code, with BP identified as the event organizer who recruited participants.

• Indonesia plans to repatriate Reynhard Sinaga, the convicted serial rapist serving a life sentence in the UK, through a prisoner exchange mechanism. The Ministry of Law, Human Rights, Immigration, and Corrections stated that Reynhard’s family has expressed deep distress over limited communication and strongly desires his return. Reynhard, dubbed the UK’s most prolific rapist, was sentenced in 2020 for 159 counts of sexual assault against 48 victims, primarily young intoxicated men in Manchester. He survived an inmate attack in 2023 and reportedly suffers psychological distress.

Business/Economy

• Indonesia's economy grew 5.03% in 2024, slightly beating forecasts but missing the government's 5.2% target, with trade, mining, and agriculture driving growth. The expansion was slower than 2023’s 5.05% and far from President Prabowo’s 8% goal, which he hopes to achieve by the end of his first presidential term. While Prabowo remains optimistic, Bank Indonesia warns of slowing domestic demand and weaker exports, with economists projecting growth to hover around 5%.

• Finance Minister Sri Mulyani has cut the 2025 regional transfer budget (TKD) by IDR 50.59 trillion, following President Prabowo’s directive for state and regional budgets efficiency. The reductions affect Revenue Sharing Funds, General Allocation Funds (DAU), Physical Special Allocation Funds (DAK Fisik), Special Autonomy Funds, Yogyakarta’s Special Fund, and Village Funds. The DAU was cut by IDR 15.67 trillion, DAK Fisik by IDR 18.3 trillion, and Village Funds by IDR 2 trillion. The total state spending savings target is IDR 306.69 trillion, including IDR 256.10 trillion from ministry and agency budget cuts.

• The Indonesian government has temporarily halted the Food Supply and Price Stabilization (SPHP) program and rice social assistance (Bansos) as part of efforts to balance supply and demand. SPHP, aimed at controlling food price fluctuations, was initially set to distribute 1.5 million tons of rice in early 2025. Meanwhile, President Prabowo had approved a six-month distribution of 10 kilograms of rice per month as social assistance. However, both programs have been suspended to avoid flooding the market, which would prevent rice prices from rising.

• Health Minister Budi Gunadi Sadikin has revealed that the government plans to adjust or increase BPJS Kesehatan premiums in 2026. The plan has been discussed with President Prabowo, but further calculations are needed to ensure the universal healthcare program’s financials remain stable in 2026. The increase is considered necessary as BPJS Kesehatan faces a deficit, which reached IDR 12.83 trillion from January to October 2024.

• The government’s free health check program is set to launch on February 10, with Health Minister Budi Gunadi Sadikin revealing that a budget of IDR 4.7 trillion has been allocated. Budi believes the budget will be sufficient, estimating that only 50-100 million people will use the service, not the entire population of Indonesia of around 280 million. The government may allocate additional funds if necessary. 

Everything Else

• Eight people were killed and 11 were injured in a chain collision at the Ciawi Toll Gate in Bogor, West Java, late yesterday evening. The incident began when a truck carrying water gallons, traveling from Ciawi to Jakarta, swerved uncontrollably and struck several vehicles in a queue at the toll booth. Six vehicles were damaged, three of which caught fire, including two cars. Police suspect that the cause of the accident was brake failure.