Hello reader,

In case you haven’t heard, Nusantara reportedly has a prostitution and cockfighting problem. That’s right, the new capital city that’s not even officially a capital city yet.

Who’s been naughty? Not government workers, obviously, according to a top official. Read on to see who gets to take the blame.

Cheers,

Andra

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Law/Politics

• The head of the Nusantara Capital Authority (OIKN), Basuki Hadimuljono, has assured lawmakers that the core area of the Nusantara in East Kalimantan is now free from illegal activities like prostitution and cockfighting. Speaking to the House of Parliament (DPR) yesterday, Basuki said eight illicit “warung remang-remang” (dimly-lit stalls often linked to sex work) were demolished during Ramadan with help from law enforcement. He dismissed recent viral posts about vice activities in Nusantara as recycled news, stressing that such incidents occurred in Sepaku, about 3 km from the main construction zone. While affirming that no government officials are involved, Basuki admitted he couldn’t guarantee the same for the 20,000+ construction workers in the area.

• DPR’s Commission III summoned the Constitutional Court (MK) today to voice frustrations over what lawmakers see as inconsistent and controversial rulings. During the meeting, National Awakening Party (PKB) lawmaker Hasbiallah Ilyas criticized the Court’s shifting decisions on election schedules, warning that the MK risks straying from legal norms. He and other legislators also expressed concern that the painstaking legislative process in Parliament is being undermined by decisions from just nine constitutional judges. Democrat MP Andi Muzakir emphasized the need for consistency, pointing out how the MK’s rulings on simultaneous vs. staggered elections have flip-flopped over time. The latest MK decision separates national elections from local ones, with a gap of up to 2.5 years.

• Vice President Gibran Rakabuming Raka has expressed his readiness to take on responsibilities related to Papua, following President Prabowo Subianto’s directive. Gibran today said he’s awaiting further instructions, emphasizing that he’s prepared to work “anywhere, anytime.” He framed this initiative as a continuation of efforts started under former VP Ma’ruf Amin, who was tasked with leading Papua’s special autonomy acceleration during Joko Widodo’s presidency.

• A top official from Semarang’s tax agency has testified that he was threatened by the husband of former mayor Heverita Gunaryati Rahayu, AKA Mbak Ita, in a high-profile corruption trial. During a court hearing today, Binawan Febrianto told the Anti-Corruption Court that Alwin Basri had warned he’d be transferred if he didn’t hand over money. Binawan claimed to have given IDR 1 billion to Alwin, sourced from a so-called “employee solidarity fund.” He also said Alwin demanded up to IDR 3 billion at the end of 2023 to support Mbak Ita’s political campaign. According to prosecutors, between 2022 and 2024, Mbak Ita received IDR 3.8 billion and Alwin IDR 1.2 billion from these funds.

• Despite protests from local groups, controversial preacher Zakir Naik, who’s infamous for his comparative religion approach to preaching, is set to continue his Indonesia tour with a lecture in Malang, East Java tomorrow. Organizers say the event is constitutionally protected and meant to promote religious understanding, not provoke. Organizers said they’ve coordinated with authorities and religious groups, stressing that the Indian national’s talks are for Muslims but open to all. Critics argue Naik’s track record shows his speeches often stir controversy and provoke tension.

Business/Economy

• Indonesia has reportedly signed a trade deal with the US to import more US goods—particularly energy and agricultural products like wheat and corn—in an effort to persuade Washington to lower looming import tariffs. Coordinating Economic Minister Airlangga Hartarto confirmed the agreement, which includes a US$1.25 billion wheat import deal and commitments from major Indonesian companies like Sorini Agro Asia, FKS Group, and state-owned Pertamina. This move comes ahead of a planned 32% tariff set to be imposed by President Donald Trump starting August 1, 2025. Airlangga, who traveled to Washington for talks, said Indonesian businesses plan to spend up to US$34 billion on US imports. The US trade deficit with Indonesia reached US$17.9 billion in 2024, a 5.4% increase from the previous year.

• The Financial Services Authority (OJK) is warning the public about a rising scam involving illegal online lenders who send unsolicited funds to victims' bank accounts. After the transfer, scammers request the money be returned to another account—often under the pretense of an error—but this account actually belongs to the fraudsters. Victims are then harassed for allegedly taking out loans. In the first half of 2025 alone, OJK received 8,752 consumer complaints, with over 7,000 linked to illegal lending and more than 1,600 to fraudulent investments.

• PT Indokripto Koin Semesta Tbk (COIN) officially debuted on the Indonesia Stock Exchange today, becoming the 18th company to go public this year. Shareholder Andrew Hidayat expressed optimism about the company’s future, citing its strong performance and ambition to become a leading crypto trading platform in Southeast Asia. During its IPO, COIN attracted interest from 200,000 investors, which is seen as a positive signal for Indonesia’s digital economy. Hidayat added that Indonesia’s regulatory environment is now more welcoming to foreign investment in crypto, including potential launches of government-backed stablecoins fully pegged to the rupiah. 

Everything Else

• I’m of the firm opinion that the cardboard box that makes nasi kotak (rice meal in a box) degrades the dining experience, but it appears to be a novel enough idea to be appetizing for some. The 2025 President's Cup has drawn attention not just for the football action, but also for the food, especially the meal served to journalists. Liam Rice, a reporter from the UK’s Oxford Mail covering Oxford United’s trip to Indonesia, praised the nasi kotak meal provided during the team’s first match against Liga Indonesia Allstars at Gelora Bung Karno Stadium in Jakarta. He tweeted, “Hands down the best scran I’ve had in a press room before a game,” sparking viral reactions. The box included white rice, crispy fried chicken, fried noodles, vegetable omelet, spicy potato floss, and shrimp crackers. While Rice was impressed by the rice meal, many Indonesian netizens jokingly noted that it was just a standard low-budget affair.