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Muddy yet clear-cut: How Chinese investors are turning jungle into Indonesia’s new capital

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesia is in the process of shifting its seat of government from the gridlocked and sinking metropolis of Jakarta to a brand latest city carved out of the Borneo jungle. Known as Ibu Kota Nusantara, or IKN, the project aims to establish a new administrative center for an archipelago of 287 million people.

A Strategic Shift from Jakarta

The decision to move the capital is driven by severe environmental and urban pressures facing Jakarta. The current capital is plagued by heavy pollution, extreme traffic congestion, and the critical issue of land sinking, which has left much of the city vulnerable to the sea.

The new site in Borneo is currently a landscape of dense jungle, where construction crews must navigate challenges such as bridge washouts and the protection of endangered species, including sun bears. The transition is intended to alleviate the burden on Jakarta while distributing political power across the region.

Did You Know? The new capital is being built in the jungles of Borneo, where roadside warnings are currently in place to prevent the poaching of endangered sun bears.

The Influence of Chinese Investment

As Indonesia navigates a year of budget cuts, Chinese investors have grow a primary pillar for the construction of Nusantara. According to government figures, Chinese firms spent US$29 million in 2025 on development and have committed an additional US$3.08 billion.

The Influence of Chinese Investment
Chinese Indonesia Nusantara

Several major firms are leading specific infrastructure projects:

  • Delonix: The Shenzhen-based group was the first Chinese firm to join the project and is developing a mixed-use commercial site.
  • Huawei Technologies: Working with local partners to implement “smart city” infrastructure.
  • Citic Construction: Focused on the development of residential housing.

Beyond these projects, Chinese firms are involved in mass transit initiatives worth 28 trillion rupiah and road and tunnel construction valued at 27 trillion rupiah (approximately US$1.57 billion).

Expert Insight: The heavy reliance on Chinese capital and technical expertise suggests a strategic trade-off. By integrating foreign investment to offset domestic budget constraints, Indonesia may accelerate its infrastructure timeline, but it also deeply ties the future of its political heart to long-term relations with the Chinese market.

Looking Toward 2028

While the city is currently dominated by forest and construction sites, We see due to start taking over government functions from Jakarta in 2028. The success of this transition may depend on the continued flow of foreign investment and the ability to overcome logistical hurdles in the Borneo interior.

Future developments could include the full realization of the “smart city” vision and the completion of the mass transit networks. However, the pace of growth is likely to be dictated by the balance between available funding and the environmental constraints of the region.

Frequently Asked Questions

Why is Indonesia moving its capital from Jakarta?

The move is intended to save Jakarta from overpopulation, extreme pollution, and the fact that the city is sinking into the sea.

Charlie Munger: Chinese Investors Like to Gamble – That’s Stupid!

What role are Chinese companies playing in Nusantara?

Chinese investors are providing significant funding and expertise, including the development of smart city infrastructure by Huawei, housing by Citic Construction, and commercial projects by Delonix, as well as funding for roads and mass transit.

When is the new capital expected to start operations?

Ibu Kota Nusantara is due to start taking over from Jakarta in 2028.

Do you believe moving a capital city to a new location is the most effective way to solve urban decay and environmental sinking?

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Indonesia’s finance minister suggests Strait of Malacca toll before immediately backtracking

by Chief Editor
written by Chief Editor

The Rise of “Geographical Monetization” in Global Trade

In the high-stakes world of global logistics, geography is more than just a map—it is leverage. A recent suggestion by Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, regarding the imposition of tolls on ships passing through the Strait of Malacca, highlights a growing trend: the desire of strategic nations to monetize their geographical position.

The Rise of "Geographical Monetization" in Global Trade
Strait Malacca Indonesia

Whereas the idea was quickly walked back, the mere suggestion signals a shift in how some nations view their role in global trade. Rather than acting as passive conduits for international commerce, there is an emerging appetite to transition from “peripheral” status to becoming central, profit-generating players in the global energy and trade routes.

Did you know? The Strait of Malacca is one of the world’s most critical waterways, connecting the Indian and Pacific Oceans and carrying more than 40 per cent of the world’s seaborne trade.

The Hormuz Precedent: A Blueprint for Maritime Leverage?

The discussion around the Strait of Malacca did not happen in a vacuum. It was explicitly linked to moves in the Strait of Hormuz, where Iran has sought to control passage and impose charges on vessels following regional tensions and strikes by the US and Israel.

The Strait of Hormuz handles approximately 2 per cent of the world’s seaborne oil trade. When a nation successfully leverages such a chokepoint, it creates a “precedent of behavior” that other littoral states may be tempted to copy. This “domino effect” is what worries strategic analysts, as instability in one maritime region can potentially spread to another.

Why the Strait of Malacca is a Different Beast

Unlike the Hormuz situation, the Strait of Malacca is bordered by three different nations: Indonesia, Malaysia, and Singapore. Any attempt to implement a levy would require a level of regional cooperation that is currently non-existent.

From Instagram — related to Strait, Malacca

Singapore has already been vocal in its rejection of such moves. Foreign Minister Vivian Balakrishnan has emphasized that the right of transit passage is a guarantee for everyone, not a “privilege to be granted” or a “toll to be paid.”

UNCLOS vs. National Interest: The Legal Tug-of-War

At the heart of this tension is the United Nations Convention on the Law of the Sea (UNCLOS). This international framework guarantees the freedom of navigation and the right of passage through sea lanes without impediment.

Indonesia's finance minister says MSCI warning was a good thing

Indonesian Foreign Minister Sugiono has clarified that imposing a levy would contravene international law and be inconsistent with Indonesia’s status as an archipelagic state. However, the internal tension between a finance ministry looking for revenue and a foreign ministry upholding international law suggests a complex internal debate over national interest.

Expert Insight: Analysts suggest that these suggestions may act as “trial balloons”—statements put out to test the waters of regional and international reaction rather than finalized policy.

The Broader Impact on Global Supply Chains

Any actual move toward tolling the Strait of Malacca would likely trigger fierce opposition from global superpowers. Both the United States and China are heavily reliant on the flow of oil and goods through this specific corridor.

For countries like Australia, whose national income is increasingly derived from trade, the security of these sea lines of communication is profoundly important. Defence Minister Richard Marles has reiterated that freedom of navigation on the high seas is a fundamental principle that must be upheld to ensure global economic stability.

“If we split it three ways — Indonesia, Malaysia, and Singapore — it could be quite substantial.” — Purbaya Yudhi Sadewa, Indonesian Finance Minister.

Frequently Asked Questions

What is the Strait of Malacca?
It is a critical waterway connecting the Indian and Pacific Oceans, serving as one of the busiest shipping lanes in the world.

Frequently Asked Questions
Strait Malacca Indonesia

Why would Indonesia want to charge a toll?
The suggestion was aimed at leveraging Indonesia’s strategic geographical position for financial gain and positioning the country as a central player in global trade.

Is charging a toll legal under international law?
According to Indonesian and Singaporean officials, such a move would contravene the United Nations Convention on the Law of the Sea (UNCLOS), which guarantees freedom of navigation.

How did Iran influence this discussion?
The Indonesian Finance Minister pointed to Iran’s move to impose charges on ships transiting the Strait of Hormuz as a potential model for other strategic waterways.

Join the Conversation

Do you believe strategic waterways should be free for all, or should bordering nations be compensated for maintaining them? Let us know your thoughts in the comments below or subscribe to our newsletter for more deep dives into global geopolitics.

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Indonesia military officer steps down following acid attack on activist

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Jakarta – A senior Indonesian military officer has stepped down in the wake of an acid attack on an activist who publicly opposed the increasing role of the military in civilian life, a spokesperson confirmed Thursday.

Acid Attack and Military Response

Andrie Yunus, a deputy coordinator with the Commission for Missing Persons and Victims of Violence – known as KontraS – sustained burns to 20% of his face and body when he was attacked by assailants on a motorcycle on March 12. The attack prompted widespread condemnation both domestically and internationally, with UN human rights chief Volker Turk calling it a “cowardly act of violence.”

Did You Know? Andrie Yunus had recently recorded a podcast episode discussing the expansion of the military’s role prior to the attack.

Military spokesperson Aulia Dwi Nasrullah stated that Yudi Abrimantyo, the chief of the military’s intelligence unit, relinquished his position as a demonstration of responsibility for the attack. Four officers from the intelligence unit have been arrested in connection with the incident. Punishments for those found guilty could range from disciplinary action to dishonorable discharge.

Growing Concerns Over Military Expansion

The incident occurs against a backdrop of increasing concern regarding democratic values in Indonesia, the world’s third-largest democracy. Under the administration of President Prabowo Subianto, a retired general, the military’s involvement in civilian areas and state-run businesses has reportedly increased significantly.

Expert Insight: The handover of position by a high-ranking intelligence officer, while presented as a matter of responsibility, signals the gravity of the situation and the potential for broader implications regarding civilian oversight of the military.

President Subianto himself described the attack on Andrie Yunus as “terrorism” and pledged a thorough investigation with no impunity. Hundreds of civil society groups, including Amnesty International, have characterized the attack as attempted murder.

Andrie Yunus remains hospitalized in Jakarta, currently in intensive care after undergoing surgery on Wednesday to address injuries to his right eye and to receive skin grafts to his eye, chest, and shoulder.

Calls for Independent Investigation

KontraS has urged President Subianto to establish an independent team to investigate the case, advocating for prosecution in civil courts rather than military courts. This call echoes a similar demand made earlier this week by Human Rights Watch. KontraS and other groups emphasized that the crime occurred in a civilian space, separate from military operations.

Frequently Asked Questions

What is KontraS?

KontraS is the Commission for Missing Persons and Victims of Violence, a rights group in Indonesia. Andrie Yunus is a deputy coordinator with the organization.

What was the response from the Indonesian military?

The Indonesian military arrested four officers from the intelligence unit in connection with the attack. Yudi Abrimantyo, the chief of the military’s intelligence unit, relinquished his position as a demonstration of responsibility.

What is the condition of Andrie Yunus?

Andrie Yunus is currently hospitalized in Jakarta in intensive care, recovering from surgery to treat injuries to his right eye and skin grafts to his eye, chest, and shoulder areas.

As investigations continue, will the pursuit of justice for Andrie Yunus lead to broader reforms regarding the role of the military in Indonesian society?

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Prabowo hits back at criticism of his frequent overseas trips, says they reap economic gains for Indonesians

by Chief Editor
written by Chief Editor

The Rise of Presidential Economic Diplomacy: Why Leaders Are Hitting the Road

Indonesian President Prabowo Subianto’s recent defense of his extensive international travel highlights a growing trend: heads of state taking a more direct, hands-on approach to economic negotiations. He argues that securing favorable trade deals, like the recently completed Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), requires more than just the operate of trade ministers and diplomats. It demands direct engagement with counterparts at the highest levels.

Breaking Through the Bureaucracy: The Limits of Traditional Negotiation

President Subianto’s experience underscores a common frustration in international trade talks. Negotiations frequently stall at the technical level, requiring strategic interventions from national leaders to overcome impasses. He explained that often, negotiators need to “report to their top leader,” necessitating direct communication between heads of state to resolve critical issues. This isn’t simply about politeness; it’s about the ability to make swift decisions and offer concessions that lower-level officials may not be authorized to provide.

The IEU-CEPA as a Case Study in High-Level Intervention

The successful conclusion of the IEU-CEPA serves as a prime example. Without President Subianto’s direct engagement with European leaders – including meetings with the King of Belgium and key EU officials – Indonesia’s key export sectors, such as textiles and footwear, might have continued to face significant trade barriers. The agreement now provides these industries with zero-tariff access to the European market, a crucial win for Indonesia’s manufacturing base. This success mirrors similar gains achieved through cooperation with Canada.

Did you know? The IEU-CEPA negotiations began in 2016, highlighting the lengthy and complex nature of these agreements. President Subianto credited his predecessor, Joko Widodo, with laying the groundwork for the deal.

Economic Strength as National Security: A Shifting Global Paradigm

President Subianto frames this increased presidential involvement as a response to a changing global landscape. He believes that economic strength is paramount to a nation’s standing and ability to resist external pressure. “If our economy is strong, we cannot be pushed around,” he stated. This reflects a broader trend of nations prioritizing economic diplomacy as a core component of their foreign policy.

Beyond Trade: The Broader Implications of Direct Engagement

Although trade agreements are a key focus, this trend extends to other areas of economic cooperation. Direct leader-to-leader discussions can facilitate investment deals, technology transfers, and collaborative projects that might otherwise be hampered by bureaucratic hurdles. The warmth of the reception President Subianto received in Brussels – including meetings scheduled outside of normal working hours – demonstrates the value placed on these high-level interactions.

Pro Tip: For businesses looking to expand internationally, understanding the personal relationships between national leaders can provide valuable insights into potential opportunities and challenges.

The European Union’s Perspective: A Commitment to Strategic Partnerships

European Commission President Ursula von der Leyen has echoed the sentiment of strengthening strategic partnerships, particularly with nations like Indonesia. She unveiled three pillars of the EU-Indonesia agreement, signaling a commitment to deeper cooperation. This mutual desire for collaboration underscores the importance of direct engagement in fostering trust and achieving mutually beneficial outcomes.

Frequently Asked Questions

Q: Why are presidents getting more involved in trade negotiations?
A: Presidents are intervening to break through bureaucratic roadblocks and make strategic decisions that require high-level authorization.

Q: What is the IEU-CEPA?
A: The Indonesia-European Union Comprehensive Economic Partnership Agreement is a trade agreement designed to strengthen economic ties between Indonesia and the EU.

Q: What sectors in Indonesia benefit from the IEU-CEPA?
A: Key sectors like textiles and footwear now have zero-tariff access to the European market.

Q: Is this trend limited to Indonesia?
A: No, What we have is a global trend reflecting the increasing importance of economic diplomacy and the need for strong leadership in international negotiations.

What are your thoughts on the increasing role of heads of state in economic diplomacy? Share your comments below!

Explore more articles on international trade and economic policy.

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Acid attack on Indonesian activist raises fears for democracy under Prabowo

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

An Indonesian human rights activist was seriously injured in an acid attack in Jakarta late Thursday, prompting calls for a thorough investigation. Andrie Yunus, deputy coordinator of the KontraS rights group, sustained injuries to his face, an eye, hands, and chest.

Details of the Attack

According to KontraS coordinator Dimas Bagus Arya, Andrie Yunus was riding a motorbike when two men on a scooter approached him. One of the men threw acid at him, and both attackers concealed their faces. Yunus had previously received threats related to his activism.

Did You Know? Andrie Yunus was attacked shortly after completing the recording of a podcast titled “Remiliterisme and Judicial Review in Indonesia.”

Yunus was immediately taken to a hospital, where he is being treated for burns covering 24 percent of his body.

Significance and Concerns

KontraS views the attack as an attempt to silence critical voices in Indonesian society. Andrie Yunus has been a vocal critic of increasing military influence within the Indonesian government.

Expert Insight: Attacks targeting human rights defenders raise serious concerns about the safety of those working to hold power accountable and the potential for a chilling effect on civic engagement.

The attack comes amid broader concerns about democratic backsliding in Indonesia.

What Happens Next?

Police are investigating the incident, but no official reports had been filed as of Friday, March 13, 2026. Investigators will be able to identify and apprehend the perpetrators. Further investigation may reveal the motive behind the attack. It is also possible that the investigation will stall, and the perpetrators will not be brought to justice.

Frequently Asked Questions

Who is Andrie Yunus?

Andrie Yunus is the deputy coordinator of KontraS, an Indonesian rights group.

When did the attack occur?

The attack occurred late on Thursday, March 12, 2026, in Jakarta.

What injuries did Andrie Yunus sustain?

Andrie Yunus sustained injuries to his face, an eye, hands, and chest, and has burns covering 24 percent of his body.

What role does the increasing influence of the military play in this incident?

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Prabowo Holds Series of Cabinet Meetings at Hambalang Residence

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesian President Prabowo Subianto convened a series of five meetings with members of his cabinet on Sunday, March 8, 2026, at his private residence in Hambalang, Bogor, West Java. The meetings, which spanned the afternoon and evening, focused on a range of strategic domestic and international issues, according to Cabinet Secretary Teddy Indra Wijaya.

Focus on Education and STEM

The first meeting centered on plans for collaboration in building ten novel specialized campuses across the country. These institutions will focus on science, technology, engineering, and mathematics (STEM) fields. A second discussion addressed the development of existing Indonesian universities, with an emphasis on improving their global rankings and fostering international partnerships.

International Concerns and Domestic Security

The President too dedicated a meeting to the volatile situation in the Middle East, which is experiencing turmoil following military actions by the United States and Israel in Iran, resulting in the deaths of leaders from Gulf countries. Prabowo discussed security preparations for the upcoming annual mudik (exodus) period leading up to Eid al-Fitr.

Did You Grasp? Since 2022, President Prabowo, whereas serving as Minister of Defense, initiated a program to invite Palestinian students to study in Indonesia, and the number of students has grown from 20-40 to nearly 200.

A fourth meeting specifically addressed the progress of nearly 200 Palestinian students currently studying at the University of Defense.

Key Attendees

In attendance at the meetings were Minister of Research and Technology Brian Yuliarto, Minister of Defense Sjafrie Sjamsoeddin, and Deputy Minister of Defense Donny Ermawan. Senior officials from PT Pindad (Persero) and the University of Defense also participated.

Expert Insight: The breadth of topics addressed in these meetings – from STEM education to regional security – suggests a proactive approach to both long-term development and immediate geopolitical challenges. The inclusion of defense industry and academic leaders indicates a desire for integrated solutions.

Frequently Asked Questions

What was the primary purpose of the meetings?

The primary purpose of the meetings was for President Prabowo Subianto to receive reports from his cabinet members on strategic issues, both domestically and internationally.

Which sectors are receiving focused investment?

The meetings indicated a focused investment in science, technology, engineering, and mathematics (STEM) through the planned construction of ten new specialized campuses.

What international issue was discussed?

The situation in the Middle East, specifically the turmoil following military attacks by the United States and Israel on Iran, was discussed.

How might these discussions shape Indonesia’s policy priorities in the coming months?

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Why Indonesia’s lead role in Gaza peacekeeping force carries high political risk

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesia has accepted the position of deputy commander within the United States-led International Stabilisation Force (ISF) for Gaza, signaling a significant role in the mission as it prepares to potentially deploy up to 8,000 troops.

A Key Role for Indonesia

The decision came during the inaugural meeting of US President Donald Trump’s Board of Peace in Washington on Thursday. Indonesian President Prabowo Subianto attended the meeting, where Major General Jasper Jeffers, commander of the ISF, announced Indonesia’s acceptance of the deputy commander position.

Did You Recognize? Indonesia is set to be among the first five countries to contribute troops to the ISF, joining Morocco, Kazakhstan, Kosovo, and Albania.

Whereas the Indonesian government has stated its focus will be on civilian protection and humanitarian aid, the broader objectives of the ISF – which may include disarming Palestinian armed groups – could present challenges to this pledge. Prabowo Subianto indicated that “advanced groups” will be sent within one to two months to assess conditions and security risks in Gaza.

What’s Next?

Indonesia plans to deploy up to 8,000 personnel, a number that could increase “if necessary.” Egypt and Jordan are also expected to contribute by assisting in the training of a latest transitional Palestinian police force. The ISF is projected to ultimately comprise around 20,000 personnel.

Expert Insight: Accepting the deputy commander position places Indonesia in a potentially complex situation. Balancing its stated humanitarian goals with the broader security objectives of the ISF will require careful navigation, particularly given the sensitive political landscape in the region.

Frequently Asked Questions

What position has Indonesia accepted within the ISF?

Indonesia has accepted the position of deputy commander for the International Stabilisation Force (ISF).

How many troops is Indonesia preparing to send to Gaza?

Indonesia is preparing to send up to 8,000 military personnel to Gaza, with the possibility of increasing this number “if necessary.”

Which other countries are contributing to the ISF?

Morocco, Kazakhstan, Kosovo, and Albania are also among the first five countries contributing to the ISF. Egypt and Jordan will assist in training a new Palestinian police force.

As Indonesia prepares for a potential deployment to Gaza, what challenges and opportunities do you foresee for its role in the International Stabilisation Force?

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The Role of Prabowo’s Relative in Pushing Through the Domestic Workers Bill

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Wina Ningsih Kuswadi, a 43-year-old domestic worker, anticipated improved working conditions following a speech by President Prabowo Subianto in 2025. President Subianto promised the passage of the Domestic Workers Protection Bill during the Labor Day commemoration.

Hopes Diminish as Bill Stalls

Wina, who has been following the bill’s progress, believes it contains provisions for working hours, fair wages, and protection from violence. Still, nine months after the President’s announcement, deliberations on the bill remain stalled in Senayan, Jakarta.

Did You Know? President Subianto pledged to begin discussions on the draft bill just one week after the 2025 Labor Day commemoration.

“Without regulations protecting domestic workers, it’s hard to imagine our lives improving,” Wina stated on February 19, 2026. She is currently involved with the Sapu Lidi Jakarta Domestic Workers Union.

Presidential Pledge Followed Input from Lawmaker

President Subianto’s commitment to the bill came after receiving input from Sufmi Dasco Ahmad, House Deputy Speaker and Gerindra Party Executive Chair.

Expert Insight: The continued delay in passing this legislation highlights the challenges of translating political promises into concrete legal protections for vulnerable worker populations. The lack of formal regulations leaves domestic workers susceptible to exploitation and without recourse for unfair treatment.

If the bill were to pass, it could establish standardized working conditions and protections for domestic workers. However, without action by the House of Representatives, the bill may remain stalled indefinitely. A possible next step would be renewed advocacy from unions and stakeholders to prioritize the bill’s passage.

Frequently Asked Questions

What prompted President Subianto’s pledge?

President Subianto pledged to pass the regulation after receiving input from House Deputy Speaker and Gerindra Party Executive Chair Sufmi Dasco Ahmad.

What are Wina’s concerns?

Wina expressed concern that without regulations protecting domestic workers, it will be difficult to see improvements in their lives.

Where are the bill’s deliberations currently taking place?

Deliberations on the bill remain stalled in Senayan—the site of the House complex in Jakarta.

What impact would formal protections have on the lives of domestic workers in Indonesia?

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Indonesia to deploy Gaza force starting in April

by Chief Editor
written by Chief Editor

Indonesia to Lead Initial Gaza Stabilization Force

Indonesia is preparing to deploy an initial contingent of 1,000 troops to Gaza in April, with a full force of approximately 8,000 soldiers expected by June. This deployment, part of the International Stabilization Force (ISF) under the Trump administration’s Phase II ceasefire plan, marks a significant step towards establishing a security presence in the region.

The Role of the ISF and Indonesia’s Contribution

The ISF aims to contribute to peacekeeping efforts in Gaza, though it is not expected to engage in direct confrontation with Hamas or proactively disarm the group. Indonesian soldiers will likely focus on supervising defense lines in areas such as Khan Yunis and Rafah in southern Gaza. The deployment process is underway, with aspects of soldier selection and clearance already in motion.

A Multi-National Effort

While Indonesia is set to be the first contributor to the ISF, discussions have included other nations such as Azerbaijan, Pakistan, the UAE, Egypt, Italy, Qatar, and Turkey. Though, to date, Indonesia is the only country to have reached a stage of concrete readiness for deployment.

Potential Challenges and Contingencies

Despite the preparations, the deployment is contingent on the security situation in Gaza. If conditions are not conducive – specifically, if conflict with Hamas persists – the force may not deploy, even if fully prepared. Complex issues surrounding rules of engagement in the event of contact with Hamas are still being resolved.

The 100-Day Deadline and Future of the ISF

The long-term viability of the ISF is tied to progress in disarmament efforts by Hamas. If a serious disarmament process isn’t underway by early May – around the 100-day deadline set by the Trump administration – the future of the ISF remains uncertain, potentially leading to a resumption of major Israeli ground operations in Gaza.

Geopolitical Implications

Indonesia’s involvement highlights a shifting dynamic in regional security. The country’s willingness to contribute a substantial force underscores its commitment to international peacekeeping efforts and its role in the Middle East. The success of this initial deployment could encourage other nations to join the ISF, bolstering the overall stabilization effort.

FAQ

  • What is the purpose of the ISF? The ISF aims to contribute to peacekeeping in Gaza during Phase II of the ceasefire.
  • Will the ISF confront Hamas? No, the ISF is not expected to proactively confront or disarm Hamas.
  • When will the full Indonesian force be deployed? Approximately 8,000 Indonesian soldiers are expected to be deployed by June.
  • What happens if the security situation deteriorates? The deployment could be postponed if conditions in Gaza are not conducive.

Pro Tip: Stay informed about developments in the region by following reputable news sources and official statements from involved parties.

Explore more insights into international relations and security dynamics on our website. Share your thoughts on this developing situation in the comments below!

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Extractive-led economic growth fuels environmental crisis – Society

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

President Prabowo Subianto’s administration’s ambition to achieve 8 percent economic growth by 2029 through expanded extractive industries is raising concerns about potential environmental damage and increased social inequality, according to the Indonesian Forum for the Environment (Walhi).

Growth Targets and Economic Realities

Since taking office in October 2024, President Subianto has publicly stated his goal of 8 percent gross domestic product growth by the end of his term. However, this target has been met with skepticism from economists. Bank Indonesia (BI) currently projects a growth rate of 4.9 to 5.7 percent for the current year, as stated by central bank governor Perry Warjiyo.

Ecological and Social Risks

Walhi warns that pursuing rapid economic growth could lead to an ecological crisis, building on existing government policies that have encouraged large-scale extractive activities. “There is a high price to pay for growth. What was supposed to be the foundation for prosperity instead ends up pushing vulnerable communities further to the margins,” said Wahyu Eka Setyawan, a Walhi urban campaigner, during a press briefing on Wednesday.

Did You Know? The national strategic project known as the “food estate” is projected to open up more than 2 million hectares of forest.

Expansion of Extractive Industries

Several policies implemented throughout 2025 are identified as potentially contributing to ecological degradation. These include plans to develop oil palm plantations in Papua, an area already impacted by forest clearing related to the food estate project. Communities in Papua have previously experienced repression associated with large-scale deforestation.

The food estate project, intended to achieve food self-sufficiency, is described by Walhi as the country’s “largest project to legalize deforestation.”

Expert Insight: The pursuit of ambitious economic growth targets often presents a trade-off between short-term gains and long-term sustainability. Expanding extractive industries, while potentially boosting GDP, carries inherent risks to the environment and the communities that depend on it. Balancing these competing priorities is a complex challenge for any administration.

What Could Happen Next

If the administration continues to prioritize extractive industries to meet its growth targets, Indonesia could see increased deforestation and further marginalization of vulnerable communities. It is possible that environmental regulations could be relaxed or enforcement weakened to facilitate these projects. Conversely, increased public pressure or a shift in economic conditions could lead to a reevaluation of these policies. A slowdown in global demand for commodities could also impact the feasibility of achieving the 8 percent growth target.

Frequently Asked Questions

What is the 8 percent growth target?

The 8 percent growth target is a goal set by President Prabowo Subianto to increase Indonesia’s gross domestic product by 8 percent by the end of his term in 2029.

What is Walhi’s concern regarding the food estate project?

Walhi describes the food estate project as the country’s “largest project to legalize deforestation,” projecting it will open up more than 2 million hectares of forest.

What policies are raising environmental concerns?

Plans to open oil palm plantations in Papua and the ongoing food estate project are among the policies identified by Walhi as potentially leading to further ecological degradation.

How might economic pressures influence Indonesia’s environmental policies in the coming years?

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