Key insights and market outlook
In 2025, Indonesia implemented bold policy decisions across various sectors, including economic reforms, environmental law enforcement, and international diplomacy. The government demonstrated its commitment to protecting public interests through measures such as handling consumer issues and cracking down on illegal palm oil plantations. Indonesia also strengthened its global presence through diplomatic engagements and trade agreements. These actions are expected to shape public perception and build trust in the government's ability to deliver on its promises.
The year 2025 marked a significant shift in Indonesia's approach to economic governance. The government took bold steps to protect consumer interests by addressing issues related to the quality of cooking oil, rice, and fuel. These actions demonstrated a clear commitment to safeguarding public welfare and ensuring that essential commodities meet required standards. The government's proactive stance in handling these issues has been well-received by the public, who perceive these measures as a demonstration of the state's willingness to act in their favor.
Another critical area where the government showed its resolve was in environmental law enforcement. The seizure of approximately four million hectares of illegal palm oil plantations around forest areas and the dismantling of around a thousand illegal mines underscore the government's commitment to protecting natural resources. These actions were reinforced by the issuance of Presidential Regulation Number 5 of 2025, which provides a legal foundation for cross-sector law enforcement. While these measures have been seen as bold and necessary, they also carry the risk of being perceived as threatening by certain groups. Therefore, effective communication and follow-up actions are crucial to managing public perception.
On the international front, 2025 was a significant year for Indonesia's diplomatic efforts. The country's presence at international forums, such as the military parade in France and the UN General Assembly, highlighted Indonesia's return as a confident global actor. The government's efforts to strengthen economic diplomacy through trade negotiations, including the EU-CEPA agreement and discussions with the United States, Canada, and Eurasia, are expected to boost Indonesia's economic standing. The implementation of cross-border QRIS integration has also made a tangible impact on daily economic activities, demonstrating the practical benefits of these diplomatic efforts.
As Indonesia moves into 2026, the challenge for the government will be to maintain responsiveness and deliver on its promises. The public's perception will be shaped not just by the bold decisions made in 2025, but by the government's ability to follow through on its commitments. Programs such as the Free Nutritious Meal Program and the Red and White Village Cooperative are expected to be key areas where the government's performance will be evaluated. The public will be watching closely to see whether these initiatives are implemented effectively and whether they achieve their intended outcomes.
The year 2025 has been a period of significant action for Indonesia, marked by bold decisions across various domains. As the country looks ahead to 2026, the focus will shift from making bold moves to demonstrating responsiveness and delivering on promises. The government's ability to manage public perception and build trust will be critical in ensuring that the actions of 2025 are remembered as a positive turning point in the country's development.
Consumer Protection Measures
Environmental Crackdown
Trade Agreement Negotiations