What Happened
On Mar 5, 2026?

National Policy & Geopolitics

In a major push for energy independence, MIND ID and the National Energy Council (DEN) have socialized Government Regulation (PP) No. 40 of 2025 regarding the National Energy Policy (KEN). Adding to the regulatory landscape, the government is socializing PP No. 55 of 2025 regarding customary law (Hukum Adat) and providing updates on tax compliance. Recent tax guidelines clarify positive fiscal corrections, where expenses for personal interests of shareholders, luxury "natura" (benefits-in-kind), and administrative tax sanctions cannot be used to reduce gross income. Supporting fiscal stability, Finance Minister Purbaya Yudhi Sadewa officially issued PMK No. 13 of 2026, allocating Rp 55 trillion for the 2026 Holiday Allowance (THR).

To accelerate the Indonesia Gold 2045 vision, the Pijar Foundation launched the Indonesia Precision Policy Alliance (IPPA). Meanwhile, regarding global tensions, the government reaffirmed its refusal of diplomatic ties with Israel and urged citizens to postpone Umrah. Komisi VII DPR member Kaisar Abu Hanifah and Nasdem Party representatives have warned that the Middle East conflict, specifically the potential closure of the Strait of Hormuz, threatens the national industrial foundation. Adding to energy security concerns, the government admitted that national fuel (BBM) reserves currently only last 21 to 25 days. President Prabowo has directed the expansion of storage facilities, with a new large-scale storage project currently being scouted in Sumatra to align with international standards of a 60-day reserve.

Markets & Economy

The Jakarta Composite Index (IHSG) experienced extreme volatility, plunging to a low of 7,596 before fluctuating near 7,679. The sell-off was triggered by Fitch Ratings shifting Indonesia’s outlook to "Negative" and fears over the Strait of Hormuz closure. Banking giants (BBCA, BMRI, BBRI), tech leader GOTO, and energy firm BUMI saw significant declines. To stabilize the market, the OJK is accelerating transparency reforms, including a 15% free float requirement. Global oil prices remain high, with Brent hovering around US$ 82.00.

Responding to the Fitch Ratings outlook shift, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the government will prioritize strengthening state revenue through the Coretax system to improve the tax ratio. Despite the negative outlook—driven by concerns over the 8% growth target, social spending such as Free Nutritious Meals, and the formation of Danantara—Airlangga remains optimistic as Indonesia maintains its BBB investment grade rating.

Parliamentary Affairs & Legislation

Legislative focus remains heavy on the Domestic Workers Protection Bill (RUU PPRT). Baleg Chairman Bob Hasan and Vice Chair Martin Manurung confirmed a 2026 target for its enactment, with the Nasdem Fraction highlighting the bill as crucial protection for marginal groups against crises. New details in the draft include the mandatory inclusion of BPJS Health and BPJS Employment as a primary condition for contracts between workers and employers. Rieke Diah Pitaloka noted that BPJS membership would grant workers access to housing credit. Furthermore, the Baleg is discussing out-of-court dispute resolution mechanisms, such as mediation and arbitration, to ensure faster justice.

Despite this progress, the National Advocacy Network for Domestic Workers (Jala PRT) continues to demand immediate action, noting the bill has been stalled for 22 years. During a recent hearing, PRT representative Wiwi Kartiwi shared harrowing accounts of discrimination, such as being barred from using apartment lifts. In other news, Komisi XII Vice Chair Putri Zulhas announced plans to summon Energy Minister Bahlil Lahadalia immediately after the recess period to discuss the critical fuel reserve limit and the scouting of storage sites in Sumatra. Other legislative updates include Syahrul Aidi Maazat’s new Aspiration House in Riau and Bambang Heri Purnama’s push to upgrade Lanal Banjarmasin to Type A for IKN security.

Regional Governance & Infrastructure

In East Nusa Tenggara (NTT), Governor Melki Laka Lena held an open virtual forum with thousands of PPPK workers from 22 regencies to discuss potential layoffs due to fiscal constraints. The governor is lobbying to revise Law No. 1 of 2022 (UU HKPD), specifically to raise the 30% employee spending cap to 40% to accommodate essential teachers and health workers. PPPK representatives, including Abdullah Ajid Dewa Zena, emphasized that schools are heavily dependent on these workers.

In Jember, Regent Muhammad Fawait launched a free electricity meter program for the underprivileged. Elsewhere, Merangin Regent M. Syukur reported a Rp 240 billion budget cut, while infrastructure continues with Purbalingga's "Alus Dalane" program. Other updates: Nganjuk launched a soybean pilot, and Central Java distributed Rp 4.9 billion in rewards to athletes.

Legal & Electoral Investigations

A major corruption scandal has hit Luwu Regency, where Kejari Belopa arrested former DPR member Muh Fauzi and Luwu Deputy Speaker Zulkifli for allegedly extorting farmers in the P3-TGAI irrigation program. This adds to the ongoing investigation into Pekalongan Regent Fadia Arafiq and the Prabumulih Pilkada grant case.

In a significant legal development, during a pretrial hearing for Yaqut, administrative law expert Oce Madril (UGM) criticized the 2019 KPK Law revision. He argued that removing the status of "investigator" and "prosecutor" from KPK leaders creates legal uncertainty and hinders the agency's enforcement capabilities. On the political front, PKB Banyuwangi is targeting 17 DPRD seats for 2029, while Lakpesdam PCNU Depok continues to debate the legitimacy of indirect regional elections.

Education & Human Capital

Wamendikdasmen Atip Latipulhayat emphasized contextualizing digitalization at the local level during a visit to Central Java. In individual achievements, Mayanggi Sephira of Ponpes Kauman Muhammadiyah was accepted into eight international universities, showcasing the global competitiveness of Indonesian students.