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Hello reader,

It’s never nice to hear that people are losing their jobs. Yet the reality in Indonesia is that layoffs have been rising over the past year at an alarming rate. Here’s hoping those in between employment find something fulfilling (in more ways than one) soon.

Also, happy National Children’s Day!

Cheers,

Andra

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Law/Politics

• The Indonesian Legal Aid Foundation (YLBHI) has flagged 25 problematic articles in the draft revision of the Criminal Procedure Code (RKUHAP), currently being discussed in the House of Representatives (DPR). In a hearing with Commission III, YLBHI submitted a counter-draft and highlighted five major concerns: the risk of abuse and excessive force due to extended detention periods and vague justifications for arrest; the lack of oversight (check and balances) on law enforcement actions like surveillance and searches without court approval; restorative justice mechanisms that prioritize perpetrators' forgiveness over victims’ wishes; limited legal access and weakened protections for suspects’ rights to counsel, including non-advocate legal support; and the need to expand pretrial rights, including protection against unlawful detention, forced confessions, and denial of legal aid.

• DPR Deputy Speaker Sufmi Dasco Ahmad denied speculation that political friction is stalling the Domestic Workers Protection Bill (RUU PPRT), asserting there’s no “locking horns” among DPR leadership. He clarified that the delay is due to the recent recess and current focus on the RKUHAP, but promised that the PPRT bill will be back on the table once the new session begins in August. President Prabowo Subianto had earlier called for the bill to be passed within three months as a May Day gift for workers. Though it was last discussed in mid-June, the legislation has yet to gain momentum. The bill has been in limbo for over two decades, despite repeatedly entering the national legislative program. Advocates say its passage is long overdue to secure legal recognition and protection for Indonesia’s domestic workers.

• Former President Joko Widodo brought his original school and university diplomas—from elementary through to his forestry degree at Gadjah Mada University (UGM)—to the Solo Police as part of an investigation into a defamation case he reported. His legal team stated that these documents were submitted to investigators from the Jakarta Metro Police's Criminal Investigation Unit and may be used or seized depending on the legal process. Jokowi, who served from 2014 to 2024, has consistently cooperated with the legal proceedings to defend himself against accusations of falsifying his academic credentials, which he claims have defamed and slandered him. This marks his second examination in the case following a postponement due to ill health.

• Law Minister Supratman Andi Agtas confirmed that former Indonesian marine Satria Arta Kumbara automatically lost his Indonesian citizenship after joining a foreign military—specifically Russia’s. Citing Article 23 of the 2006 Citizenship Law, Supratman emphasized that any Indonesian who voluntarily enlists in a foreign army without presidential permission forfeits their citizenship by default. Although the ministry has yet to receive an official report confirming Satria’s status, if proven, Satria must now apply for naturalization to regain citizenship. Satria recently made headlines with a viral video expressing regret over signing a contract with Russia’s Defense Ministry and pleading with President Prabowo, Vice President Gibran Rakabuming Raka, and Foreign Minister Sugiono for a second chance.

• Serma Tengku Dian Anugerah, a soldier from the Bukit Barisan regional military command (Kodam) in North Sumatra, was arrested after fatally stabbing his wife, Astri Gustina Yolanda, in what appears to be a domestic murder. Military police apprehended him in a Kuala Namu airport parking lot in Deli Serdang, allegedly as he attempted to flee. The victim reportedly sustained three stab wounds to the chest, neck, and arm. While investigators are still determining the weapon used, local police suspect it was a military bayonet (sangkur). 

Business/Economy

• Indonesia saw a sharp rise in layoffs in the first half of 2025, with the Ministry of Manpower recording 42,385 workers affected by termination of employment (PHK) as of June, up 32.19% from the same period in 2024. According to ministry data, the highest layoffs occurred in Central Java (10,995), followed by West Java (9,494) and Banten (4,267). Manpower Minister Yassierli attributed the surge to various factors including declining market demand, business model shifts, and internal labor disputes. Despite the year-on-year spike, officials note that monthly layoff figures have begun to decline, with 1,609 recorded in June compared to 4,702 in May—partly due to a major layoff at Sritex in January that had significantly inflated the overall count.

• Following up on US President Donald Trump’s Truth Social post, the White House has announced a major trade agreement between the United States and Indonesia, granting the US expanded access to Indonesia’s market, particularly in manufacturing, agriculture, and digital sectors. As part of the deal, Indonesia will impose a reciprocal tariff of 19% on certain US goods. Key provisions include the removal of digital trade barriers, allowing personal data transfers to the US, and supporting a permanent moratorium on digital tariffs at the WTO. Indonesia also agreed to ease import restrictions on US agricultural products, exempting them from licensing requirements and commodity balance policies, while recognizing US regulatory oversight on meat, dairy, and plant-based food products. The White House emphasized that US companies have long pushed for these reforms.

• Indonesia’s sovereign wealth fund, Danantara, has secured a total of US$17 billion in funding within just five months of its launch in February 2025. CEO Rosan Roeslani said US$7 billion came from partnerships with other sovereign wealth funds, including US$4 billion from Qatar Investment Authority, US$2 billion from China Investment Corporation, and the rest from Russia’s RDIF. Meanwhile, Danantara also secured US$10 billion in loans from 12 foreign banks, reportedly the largest revolving facility granted to a sovereign wealth fund in ASEAN. Notably, the loans were granted without any collateral, which Rosan says reflects strong international trust in Danantara’s structure and repayment capacity, backed by state-owned enterprise dividends, though he emphasized no assets or dividends have been pledged.

• State-owned nuclear company PT Industri Nuklir Indonesia (Inuki) has formally requested closure after posting accumulated losses of IDR 114.5 billion and ceasing operations since 2022. In a hearing with the DPR, CEO R. Herry explained that Inuki could no longer operate its nuclear assets following halted fuel element orders from the National Research and Innovation Agency (BRIN) and a lack of access to facilities. With only five contract staff remaining and negative operational cash flow of IDR 5.6 billion, Inuki is pushing to transfer its assets to BRIN—a process initiated in 2022 but stalled after BRIN withdrew from accepting the asset grant in October 2024.

• Lippo Group CEO James Riady has denied claims that the Meikarta apartment complex is an abandoned or stalled project, following growing complaints from buyers demanding refunds. Speaking in Bekasi, West Java, James emphasized that Meikarta is part of a massive 5,000-hectare development and not a failed venture. He explained that the project was initially run by a Chinese firm, but Lippo stepped in after they withdrew due to various issues. James asserted that no buyers were harmed, saying apartment handovers were merely delayed by 2–3 years. He downplayed refund complaints, claiming they involve less than 1% of buyers—132 cases out of around 20,000 units sold. However, data from the Ministry of Public Housing and Settlements contradicts this, showing that 700 out of 1,200 consumer reports in early July were Meikarta buyers seeking refunds.

Everything Else

• Four Indonesian high school students won bronze medals at the 66th International Mathematical Olympiad (IMO) 2025, held in Sunshine Coast, Australia, from July 10–20. The Indonesian team also earned two honorable mentions, bringing home six recognitions in total. The bronze medalists were Janssen Edyth Lim (SMAK Immanuel Pontianak), Raymond Christopher Tanto (SMAK Kalam Kudus Sukoharjo), Jesreel Hasiholan Sigalingging (SMAS Kristen 5 BPK Penabur Jakarta), and Louis Wilson Gunawan (SMAS 1 Kristen BPK Penabur Jakarta), while Leonardo Valerian (SMA Darma Yudha Riau) and Danica Odelia (SMAS Kristen BPK Penabur Gading Serpong) received honorable mentions. Led by Nanang Susyanto (UGM) and Aleams Barra (ITB), the young geniuses improved their total score by 11 points compared to last year.