Indonesian Democracy and Islamic Ethics

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Testing ideas, absorbing criticism: Prabowo defends policy decisions in 6-hour roundtable discussion​


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Indonesian President Prabowo (left) holds a discussion on March 17 on his policy agenda with experts and senior journalists in his private residence in Hambalang, West Java. PHOTO: PRESIDENREPUBLIKINDONESIA/INSTAGRAM

  • President Prabowo defended his Free Nutritious Meal programme (MBG), costing 335 trillion rupiah, citing the need to combat stunting and malnutrition in children.
  • He clarified Indonesia's participation in Mr Donald Trump's Board of Peace, stating it allows influence for a two-state solution but Indonesia retains the right to withdraw.
  • The roundtable has drawn praise from observers who welcome the rare openness of the discussions.
Published Mar 25, 2026, 05:21 PM

JAKARTA – In a rare roundtable discussion that stretched for hours, Indonesian President Prabowo Subianto took the opportunity to directly defend his signature free-meal programme and the country’s participation in US President Donald Trump’s Board of Peace (BOP), taking an approach that analysts said is unprecedented for his administration.

The six guests – including prominent economists, a political analyst, a popular YouTube podcast host and senior journalists – were invited to freely question and criticise the administration’s broader policy agenda.

Setting the tone at the start of the session, the 74-year-old President said: “Go ahead, ask me anything.”

The marathon discussion lasted over six hours, and a complete recording was released on YouTube on March 19 and 20, offering a glimpse into the administration’s line of thinking.

The discussion covered a sweeping range of pressing topics, including the massive budget allocations for the Free Nutritious Meal (MBG) programme, Indonesia’s controversial decision to join the BOP, and the overarching strategies to boost its economic growth to 8 per cent before Mr Prabowo’s term ends in 2029.



Free meals and BOP​

Among the most heavily scrutinised subjects was whether the government would review or scale back its MBG programme, especially since the energy crisis sparked by the Middle East conflict is expected to add pressures to state coffers. The MBG programme is set to feed 83 million people at a cost of 335 trillion rupiah (S$25.3 billion) in 2026.

“As much as I can, I will defend MBG,” Mr Prabowo said in response. “Look at the children who have stunting in those rural areas. I witnessed it myself during my campaign trails; an 11-year-old kid can have the weight of a four-year-old. I am quite sure with the MBG, we are doing the right thing.”

Critics also raised concerns about MBG kitchens being run by third-party private entrepreneurs. They pointed out instances of corners being cut that severely degraded the quality of the food delivered to children, as well as hygiene problems that have occasionally resulted in food poisoning.

Acknowledging the flaws, Mr Prabowo said the government has already shut down more than 1,000 substandard kitchens out of 25,000, and will strictly monitor operators to ensure they comply with standard operating procedures.

Pivoting to international affairs, Mr Prabowo clarified that Indonesia retains the right to withdraw from the BOP if it ultimately fails to bring tangible benefits to the Palestinian people or Indonesia.

He stressed that joining the BOP is a calculated, strategic move that aligns with the broader, eventual goal of establishing a two-state solution.

“If we are in the BOP, we can exert influence and help the Palestinian people. If we are outside it, we cannot struggle for them. We eventually made a final decision to join,” Mr Prabowo said.

“We want to guard the civilians from any possible attack from anywhere,” he added, outlining Indonesia’s intention to contribute up to 8,000 troops to Gaza to help maintain regional peace.



Addressing economic growth plans​

On the administration’s lofty economic goals, former finance minister Chatib Basri expressed doubts that Indonesia can grow at 8 per cent by 2029, from a trend rate of about 5 per cent.

To reach this goal, Mr Prabowo is planning to boost economic growth through the MBG programme, which would create jobs and require local sourcing, and the building of millions of homes for low-income households.

However, Dr Chatib, an economist, argued that Indonesia suffers from a stubbornly high incremental capital output ratio. In other words, a higher level of investment is needed to produce a unit of economic growth in Indonesia, underscoring the lack of highly developed human capital and systemic bottlenecks.

Addressing this criticism, Mr Prabowo said the government has increased its focus on education to build the required human capital. He pointed to consistent improvements in physical infrastructure, noting that the government is actively distributing digital interactive flat panels to 289,000 schools across Indonesia, many of which are in remote areas.

“The interest to learn mathematics has jumped among students in remote schools because of this,” Mr Prabowo noted. He added that the government completed the renovation of 17,000 school buildings in 2025 and plans to significantly scale that up to 70,000 in 2026.

 
One extraordinary things about Indonesian politics is the divide between elites are not deep, this is why in Indonesia making the new government with strong parliamentary support is not as difficult as in other countries.

This for example, Prabowo son, Didit, is able to have good relationship with the opposition elite family (Megawati Soekarno putri family) and also strengthen closeness with other elite families (SBY family-former President, and GusDur family - former President with strong NU / Nahdatul Ulama heritage)



Didit with Anies Baswedan and his families during Idul Fitri Praying. Anies is in second position in 2024 Presidential election and still the most threat to Prabowo for upcoming 2029 Presidential election.



The biggest opponent for Prabowo in 2029 Presidential Election is Anies Baswedan. We should see whether Prabowo will continue or replaced by him in 2029.

Anies Baswedan was second after Prabowo in 2024 Presidential Election.

 

Indonesia passes law to protect millions of domestic workers​

New law secures domestic workers’ rest, insurance, and training rights while banning wage deductions

Published Tue, Apr 21, 2026 · 05:16 PM

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For decades, Indonesia’s five million domestic workers have served as the invisible backbone of the economy. PHOTO: REUTERS


[JAKARTA] Indonesian lawmakers passed a long-awaited Bill to protect the country’s millions of domestic workers, concluding years of parliamentary debate over labour rights in South-east Asia’s largest economy.

The legislation secures rights to rest days, health insurance, pensions, and professional training for domestic workers, while banning wage deductions by placement agencies.

Bob Hasan, chairman of parliament’s legislation body, said in Jakarta on Tuesday (Apr 21) that regulators now have one year to draft detailed implementation policies.

For decades, Indonesia’s five million domestic workers, primarily women, have served as the invisible backbone of the economy, enabling the middle and upper classes to pursue careers and business ventures.

Despite their vital role, they have remained excluded from formal labour protections, leaving them vulnerable to exploitation, assault, and modern slavery. Many currently work below minimum wage without annual leave or standard days off. BLOOMBERG

 

Indonesia Caps Ride-Hailing Commissions at 8% to Protect Drivers​


Celvin Moniaga Sipahutar
May 1, 2026 | 12:23 pm

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Hundreds of online motorcycle taxi drivers from various platforms under the Banyumas Raya community stage a protest at Purwokerto town square, Central Java, on Tuesday, May 20, 2025. (Beritasatu.com/Dian Aprilia)


Jakarta. President Prabowo Subianto on Friday announced a regulation capping the share of driver earnings that ride-hailing companies can deduct, in a move aimed at improving welfare in the country’s fast-growing gig economy.

The presidential regulation No. 27/2026 on the protection of online transportation workers limits platform commissions to a maximum of 8%, significantly below previous practices that could reach up to 20% or more.

“Ride-hailing drivers work hard and risk their safety every day. It is unfair if deductions reach 20%. Even 10% is too high -- I want it below that,” Prabowo said during a May Day event at the National Monument Square in Jakarta.

Beyond regulating revenue-sharing, the decree also mandates expanded social protections for drivers, including workplace accident insurance and enrollment in the national healthcare system administered by BPJS Kesehatan.

Indonesia is estimated to have more than 4 million ride-hailing drivers, both motorcycle and car-based, with roughly a quarter operating in the Greater Jakarta area.

The policy builds on earlier measures introduced last year, when the government required ride-hailing operators to provide Idul Fitri holiday bonuses to their driver-partners, signaling a broader push to formalize protections in the platform-based transport sector.


 

The Story of a US President Worried About Indonesia’s Economy and What He Asked Jakarta to Do​

MFakhriansyah
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JAKARTA — The sharp depreciation of the Indonesian rupiah against the US dollar once raised concerns at the highest level of the United States government.

Former US President Bill Clinton reportedly expressed his concern directly to Indonesian President Soeharto during a phone call in February 1998, at the height of the Asian financial crisis.

At the time, Indonesia was facing severe economic turmoil. According to historian Jan Luiten van Zanden in The Economic History of Indonesia 1800–2010 (2012), the rupiah collapsed from around Rp2,000 per US dollar to roughly Rp10,000–12,000 per dollar following the spread of the 1997 Asian financial crisis, which began with the collapse of Thailand’s baht.

The crisis caused major disruption in Indonesia’s banking sector and triggered sharp increases in basic commodity prices.

Details of the conversation between Clinton and Soeharto only became public after declassified US presidential documents were released in 2018.

In the conversation, Clinton said he had been closely monitoring developments in Indonesia and was deeply concerned about the country’s financial condition.

“Since we spoke a few weeks ago, I have been following developments in Indonesia very closely. I wanted to stay in touch and call now because I am concerned about the financial situation there,” Clinton said.
Clinton also raised concerns about Indonesia’s consideration of implementing a currency board system, a policy that would have pegged the rupiah to the US dollar at a fixed exchange rate.

According to Clinton, the policy could worsen the crisis. He said the issue had been discussed with the IMF and G7 countries, and they believed the currency board could trigger market panic and rapidly drain Indonesia’s foreign exchange reserves.

“This could spark panic that would severely deplete Indonesia’s foreign exchange reserves and make it harder for the IMF and the international community to provide support,” Clinton said.
For that reason, Clinton urged Indonesia to continue implementing the IMF-backed economic recovery program.

According to economist Boediono in Indonesia’s Economy Through History (2016), Indonesia had signed an IMF rescue package in late October 1997 and later received an additional:

$43 billion USD economic assistance package on January 15, 1998.
In response, Soeharto explained that Indonesia had already implemented many IMF demands, including:

  • State budget revisions
  • Banking reforms and mergers
  • Trade liberalization measures
However, he said economic conditions continued to deteriorate.

“Many companies stopped operating, causing layoffs, unemployment, and unrest. The government has also repeatedly intervened and used $10 billion USD from foreign exchange reserves to support the rupiah,” Soeharto said.
As a result, the Indonesian government briefly considered implementing the currency board system as an alternative solution, although the plan was eventually abandoned.

“Thank you for your commitment. We must make decisions quickly because the people demand that their president do something to improve the situation and save the country,” Soeharto said.
In the end, Indonesia continued with the IMF program and did not adopt the currency board system. However, the crisis continued to deepen and eventually evolved into a political crisis that led to Soeharto’s resignation on May 21, 1998.

Years later, IMF policies during the crisis came under criticism from some economists who argued that the fiscal and monetary tightening measures worsened Indonesia’s economic contraction.

Jan Luiten van Zanden wrote that implementing tighter fiscal and monetary policies while the economy was already contracting “was clearly a mistake.”

“The IMF’s demands for tighter fiscal and monetary policies, while the budget was already relatively balanced and the economy was already contracting, were clearly a mistake,” wrote Jan Luiten van Zanden in The Economic History of Indonesia 1800–2010 (2012).

 

Indonesia’s New Export Watchdog Could Recover Billions Lost to Under-Invoicing​


Indah Handayani
May 21, 2026 | 7:58 pm

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Jakarta. Indonesia’s planned export oversight body Danantara Sumberdaya Indonesia (DSI) could help curb chronic under-invoicing in coal and palm oil exports, potentially recovering billions of dollars in lost state revenue, according to economists and policy researchers.


Research group NEXT Indonesia Center estimated that Indonesia has lost around $40 billion (Rp 708 trillion) annually over the past decade from under-invoicing across export commodities. Under-invoicing refers to the practice of reporting export values below actual market prices, allowing exporters to reduce tax and royalty obligations while keeping foreign exchange earnings offshore.


Executive Director Christiantoko said trade misinvoicing was not merely an administrative issue but a major threat to state finances and economic resilience. “This practice directly affects lost tax potential, reduces export foreign exchange inflows, and weakens national control over trade flows,” Christiantoko said on Wednesday.

NEXT Indonesia Center’s simulation study on crude palm oil, coal, and lignite exports found that improving export reporting accuracy for the three commodities alone could lift export growth by 0.62% and add around 0.15% to Indonesia’s GDP growth.

The group also argued that tighter export governance could help address longstanding issues surrounding export proceeds held offshore, including in regional financial hubs such as Singapore.

“With a more integrated export governance system, letters of credit from buyers could be directed straight to export management entities in Indonesia, allowing US dollar inflows to enter the domestic financial system directly,” Christiantoko said.

Andalas University economist Syafrudin Karimi said the formation of DSI could become a strategic instrument to strengthen export governance and tighten supervision over commodity trade transactions that have long been vulnerable to price manipulation.


“For years, major commodity exports such as coal and palm oil have been prone to under-invoicing due to weak oversight,” Syafrudin said on Wednesday. “Establishing a state entity under [sovereign wealth fund] Danantara Indonesia’s supervision could strengthen national economic sovereignty. However, the government must still build a system that is transparent, accountable, and aligned with the public interest.”


Syafrudin said the practice has significantly affected state revenues, export foreign exchange inflows, and the accuracy of Indonesia’s trade data. He added that DSI could improve oversight by integrating cross-sector data covering customs, taxation, banking, ports, and export contracts.


“If this entity opens up data, protects producer prices, monitors export proceeds, and limits rent-seeking intermediaries, then the policy could become an instrument of economic sovereignty,” he said.


Still, he warned the government to ensure transparent pricing mechanisms, public audits, producer protection, and independent supervision to prevent the agency from evolving into a new monopoly.


Chief Executive Officer of Danantara Indonesia Rosan Perkasa Roeslani said DSI would function as a monitoring platform overseeing export volumes, pricing, and shipment mechanisms to improve transparency and accountability.



 

Prabowo-Gibran Approval Holds Above 70% Despite Economic Concerns: Survey​



Faisal Maliki Baskoro
June 4, 2026 | 4:46 pm

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A supporter wears a Prabowo-Gibran headband in front of the Merdeka Palace in Jakarta on Oct. 20, 2024. Many people wait for Prabowo's arrival at the palace. (Antara Photo/Aprillio Akbar)



Jakarta. Public approval of President Prabowo Subianto's administration remains strong despite mounting concerns over the economy and rising living costs, according to a national survey released by pollster Poltracking Indonesia on Thursday.

"Public satisfaction with the Prabowo Subianto–Gibran Rakabuming Raka administration remains relatively high, as its approval rating is still above 70%," Poltracking Indonesia's lead researcher, Masduri Amrawi, said on Thursday.

The survey found that 72.2% of respondents were satisfied with the performance of the Prabowo-Gibran Rakabuming Raka administration, while 74.2% said they trusted the government.

The poll, conducted between May 11 and May 17, surveyed 1,220 respondents across all 38 provinces using face-to-face interviews. It has a margin of error of plus or minus 2.9 percentage points at a 95% confidence level.

According to Poltracking, the three main factors driving public satisfaction were well-targeted government assistance programs, cited by 14% of respondents, followed closely by the government's flagship Free Nutritious Meals (MBG) program at 13.8% and perceptions of Prabowo's firm leadership style at 10.6%.

The survey showed the highest satisfaction ratings in the healthcare sector, where 75.4% of respondents expressed approval. Defense and security followed at 74.5%, while education received a 72.5% approval rating. Satisfaction was lower for political stability and governance at 69.1% and for law enforcement and anti-corruption efforts at 64.5%.

"Economic management emerged as the administration's weakest area, with only 59.2% of respondents expressing satisfaction," Masduri said.

Support for the government remained relatively consistent across Indonesia's major regions, including Sumatra, Java, Kalimantan, Sulawesi, Bali-Nusa Tenggara, and eastern Indonesia, as well as across all major demographic groups, from Generation Z to Baby Boomers.

The survey also highlighted the popularity of the government's flagship social programs. The Free Nutritious Meals initiative was identified as the program delivering the greatest benefits, cited by 27.6% of respondents, followed by the Indonesia Health Card (11.1%), the Indonesia Smart Card education program (10.1%), free healthcare services (8.5%), and wage subsidy (8.3%).

Awareness of the Free Nutritious Meals program was exceptionally high, with 92.1% of respondents saying they knew about it. Among those familiar with the initiative, 55.6% said they were satisfied with its implementation, while 41.2% expressed dissatisfaction.

Despite the government's strong overall ratings, economic pressures continue to dominate public concerns. More than one-third of respondents, or 37.5%, identified rising food prices as the country's most pressing issue. Difficulty finding jobs ranked second at 9.2%, followed by the high cost of healthcare at 7.8%.

"The survey also found broad public support for tighter regulation of social media use among minors, with 77.4% backing restrictions on children under the age of 16," Masduri said.

Meanwhile, respondents said the recent increase in non-subsidized fuel prices had primarily affected household budgets through higher food prices, cited by 53.8% of those surveyed. Higher transportation costs and declining purchasing power were the next most commonly reported impacts.

Among state institutions, the Indonesian Military (TNI) recorded the highest approval rating at 78.9%, followed by the presidency at 70.7% and the Election Supervisory Agency (Bawaslu) at 70.1%.

The House of Representatives (DPR) ranked lowest, with an approval rating of 57.3%. Public satisfaction with the legislature's core functions — including government oversight, lawmaking, budget formulation, and representing public aspirations — remained below 60%.



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Previous survey is at 80 % approval rating

 

Photos Show Armed Brimob Officers Guarding Silmy Karim’s Residence During KPK Search​




KPK official talked to the journalist

Jakarta — Several heavily armed officers from Indonesia’s Mobile Brigade Corps (Brimob) were stationed outside the private residence of former Deputy Minister of Immigration and Corrections, Silmy Karim, when investigators from Indonesia’s Corruption Eradication Commission (KPK) arrived at the property in Kebayoran Baru, South Jakarta, on Friday, June 5, 2026.

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According to observations at the scene, security around the residence was tightened. The main front gate was closed, restricting access to the property.

KPK investigators reportedly arrived at approximately 2:00 p.m. local time and entered the premises through the garage entrance.



The investigation stems from an earlier KPK operation that involved the Head of the West Jakarta Immigration Office and several other individuals. The probe subsequently expanded to include allegations related to the processing of Limited Stay Permits (KITAS) and Permanent Stay Permits (KITAP), leading investigators to examine the role of Silmy Karim.

As part of internal disciplinary measures, Minister of Immigration and Corrections Agus Andrianto reportedly suspended Silmy Karim from his position after he was named a suspect, along with several other officials facing legal proceedings.

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The ministry stated that it would provide investigators with access to data, documents, and other information required by the KPK to facilitate a comprehensive investigation.

According to investigators, Silmy Karim, while serving as Director General of Immigration during the 2023–2024 period, is suspected of involvement in an alleged extortion scheme related to immigration permits. Prosecutors allege that payments were requested through Jaya Saputra, who served as Director of Residence Permits at the time.

The KPK alleges that officials within the Directorate General of Immigration and the Ministry of Immigration and Corrections received at least Rp145.5 billion (approximately USD 8.9 million), either directly or through intermediaries, during the period from 2022 to 2026.

The investigation remains ongoing, and the allegations have not yet been tested in court. Silmy Karim and the other parties involved remain entitled to the presumption of innocence until a final legal judgment is issued.

Source: CNBC Indonesia (Photos by Muhammad Sabki)

 

House leaders in Indonesia meet student protesters in rally against fuel prices, free meals​


Published Jun 20, 2026

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Protesters with posters of Indonesian President Prabowo Subianto and Vice-President Gibran Rakabuming Raka outside the provincial parliament building in Surabaya on June 19.

PHOTO: AFP

JAKARTA – Leaders of the House of Representatives in Indonesia held talks with protesters on June 19 following a series of protests launched by university students in the past week to urge for a re-evaluation of President Prabowo Subianto’s spending priorities and flagship programmes, among other demands.

On the evening of June 19, House Deputy Speakers Sufmi Dasco Ahmad of Prabowo’s Gerindra Party and Saan Mustopa of the NasDem Party came to meet protesters following a discussion with several representatives of the students inside the complex.

“Today, we have had good communication and interaction, although the time was limited. Going forward, we will increase engagement with student representatives,” Dasco told the protesters.

Saan said several key concerns raised by student representatives, including issues surrounding the free nutritious meal programme and rising fuel prices, had been addressed during the meeting by relevant agency heads and ministers who joined the audience remotely.

The House leaders also promised to facilitate dialogue with government officials on protesters’ demands.



More than 1,000 students held a rally in front of the Senayan legislative complex, chanting slogans demanding the President to stop what rallygoers described as “wasteful state spending” and suspend his costly flagship programmes, including the multitrillion-rupiah free meals programme.

With the slogan “Indonesia in a State of Emergency: Citizens United Challenging the Government”, protesters were largely led by students from Trisakti University. They were joined by students from Mercu Buana University, Esa Unggul University as well as members of the Islamic Students Association.

Clad in their university jackets, protesters from Trisakti University presented three main demands, labelled Tritura Kembali (Revisited three people’s demands), which call for economic relief measures, a review of government programmes and officials’ performance and the strengthening of civilian supremacy.

A protester, Rifky Aditya Pratama from Mercu Buana University, called on the government to provide job opportunities for young Indonesians.

“Unfortunately, we feel the government is not prioritising this,” Rifky said on June 19. “It is instead focusing on programmes we consider less urgent, such as the free meals.”

The protest on June 19 came amid growing waves of street demonstrations beginning last week against Prabowo’s spending priorities.

The free meals programme, which has been budgeted at least 268 trillion rupiah (S$19.5 billion) in 2026, is aimed at providing free food to around 83 million beneficiaries, including schoolchildren and pregnant women. The rollout is part of the government’s measures to fight malnutrition and childhood stunting across the country.

But the programme has turned into a credibility test for Prabowo’s administration, with the rollout facing growing scrutiny over high costs, cases of food poisoning and a corruption investigation that has marred the initiative.

Despite a mounting push for the programme’s suspension, several government officials including Government Communications Agency head Muhammad Qodari have asserted the rollout would continue. Qodari argued the initiative is Prabowo’s core campaign promise and insisted the programme should be improved rather than discontinued or suspended.

The government has opted to take some cost-cutting measures, reducing the programme’s budget to 228.4 trillion rupiah, said Agustina Arumsari, deputy head of the National Nutrition Agency tasked to oversee the free meals programme.

At the beginning of 2026, the meals received an allocation of 335 trillion rupiah from the state budget.

The agency has also pledged sweeping efficiency measures, including suspending distribution during the upcoming school holiday period from late June to mid-July. It also planned to stop providing meals in 76 schools deemed to be located in areas with sufficient economic capacity to meet nutritional needs without government assistance.

Economist Achmad Nur Hidayat from public university UPN Veteran Jakarta questioned the government’s stance, saying the free meals roll-out should remain subject to evaluation and suspensions despite its status as one of the President’s key campaign promises.

“Public policy instruments shouldn’t become untouchable simply because they’re politically important,” Achmad said, arguing the government should be willing to redesign or suspend programmes if audits reveal flawed design, weak oversight or increasingly systemic deviations.

He also warned against the fallacy of citing a significant investment had been made on the programme as grounds for its continuation. Policymakers, Achmad went on to say, should instead prioritise measurable outcomes, such as food safety standards and reductions in malnutrition.

Center of Economic and Law Studies researcher Nailul Huda said the government’s focus on cutting the free meal budget is not sufficient to address the issue. He said: “The programme should be suspended for two or three months so a full evaluation can be carried out.”

He noted the current push for budget efficiency is mostly driven by budget constraints rather than a genuine intention for a comprehensive review.

“All existing kitchens should be audited, including their affiliations with government officials, so the root problems can be identified and addressed,” Huda said. “Without that, evaluation and efficiency are just empty talk.” THE JAKARTA POST/ASIA NEWS NETWORK

 

Court bars MBG programme from using education budget​


Zetta Hannany, Kholid Rafsanjani
July 31, 2026 8:05 AM

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JAKARTA – Indonesia's Constitutional Court has ruled that funding for the Free Nutritious Meals (MBG) programme can no longer be drawn from the 20% allocation for education in the state budget.

Under the ruling issued on Thursday (30/7), the government has until the preparation of the 2028 state budget to separate MBG funding from the education budget.

In its decision, the court partially granted a petition filed by the Yayasan Taman Belajar Nusantara foundation and several other applicants. However, the current funding arrangement under the 2026 state budget may remain in place during the transition period.

"The petitioners' application is partially granted," the Constitutional Court judges said while delivering the ruling.

In their petition, the applicants argued that the MBG programme is not a core component of Indonesia's education system and therefore should not be financed through the education allocation in the state budget.

The court said the separation was intended to ensure that education funding in the state budget remains consistent with the constitutional mandate.

"The MBG programme, or any similarly named programme involving the distribution of nutritious meals within the education budget, must be excluded from the operational definition of education delivery, so that it no longer uses the education budget allocation in the state budget," Constitutional Court Justice Enny Nurbaningsih said while reading the ruling.

She added that the decision was intended to ensure that education funding not only complies with administrative requirements but is genuinely used to finance the provision of education.

"At the same time, it provides a stronger legal basis and greater legal certainty for the implementation of the MBG programme as a priority initiative of the government elected in the 2024 general election," she said.

The Constitutional Court also reaffirmed that the constitutional requirement to allocate at least 20% of the state budget to education cannot be deferred. (KR/ZH)


 

Timah Profit Jumps Ninefold as Illegal Mining Crackdown Lifts Production



Heru Febrianto
August 12, 2026 | 11:15 am



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A worker operates a forklift to transport stacks of tin ingots at a Timah facility in Indonesia. (Photo Courtesy of PT Timah)


Jakarta. State-owned tin producer Timah (IDX) posted a more than ninefold jump in first-half profit as a government crackdown on illegal mining and tin smuggling in Bangka Belitung helped restore supply and improve the company’s operations.

Timah’s net profit attributable to owners of the parent entity surged to Rp 2.71 trillion ($151.7 million) in the first half of 2026, from Rp 300.07 billion a year earlier.

Revenue rose 146.9% to Rp 10.42 trillion, while operating profit jumped to Rp 3.46 trillion from Rp 380.20 billion. Its operating margin widened to 33.24% from 9.01%.

The stronger performance was supported by a 75% increase in tin ore production to 12,232 metric tons of tin content, or Sn. Refined tin production rose 58% to 10,865 metric tons, while sales volume jumped 85% to 10,984 metric tons.

Timah also benefited from a 52% increase in its average tin selling price to $49,794 per metric ton.

The company said tighter oversight and security across its mining permit areas, along with support from a central government task force, had strengthened its operations.

The improvement followed President Prabowo Subianto’s order for a large-scale crackdown on around 1,000 illegal mines and the closure of tin smuggling routes in Bangka Belitung. The operation, involving the military, police and customs authorities, began in September 2025.

BRI Danareksa analyst Andhika Audrey said the crackdown was gradually bringing tin mining activity back into the formal ecosystem, allowing Timah to secure ore supplies from its concessions while improving production facility utilization and investor confidence in the national tin industry.

“The impact is starting to show in Timah’s higher production, sales volume and improved margins. If oversight of illegal mining and smuggling routes is maintained consistently, the company’s performance could see more sustainable growth,” Andhika said in Jakarta on Tuesday.

The positive sentiment has also lifted Timah’s shares. The stock rose about 17.7% from Rp 3,270 on June 30 to Rp 3,850 on Aug. 10.

At that price, Timah had a market capitalization of around Rp 28.67 trillion. Based on a simple annualization of its first-half 2026 profit, the stock was trading at an indicative price-to-earnings ratio of around 5.3 times.

“The closure of illegal mines could become a re-rating catalyst for Timah. The market is no longer seeing the company merely as a beneficiary of higher tin prices, but also as a company with more measurable opportunities for growth in production, cash flow and profit,” Andhika said.

 
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