Indonesia

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Indonesia and the European Union announced they will sign a Comprehensive Economic Partnership Agreement on Sept. 23 after nearly a decade of negotiations, the Financial Times reported on Sept. 17. 

EU, Indonesia: Trade Agreement To Be Finalized After More Than Nine Years

Indonesian President Prabowo Subianto unveiled a $1 billion stimulus package that combines social aid, infrastructure jobs and tax relief, the Jakarta Globe reported Sept. 15.

Indonesia: Jakarta Launches $1 Billion Stimulus Following Weeks of Protests

Indonesian President Prabowo Subianto reshuffled his Cabinet, headlined by the removal of Finance Minister Sri Mulyani Indrawati, a well-regarded technocrat who had served in the role for various presidents for nearly two decades, the Jakarta Globe reported on Sept. 8.

Indonesia: Ouster of Finance Chief Portends Looser Fiscal Policy

Military & Security

Protests in Jakarta escalated after a 21-year-old motorcycle taxi driver was struck by a police armored vehicle and died, the Jakarta Globe reported on Aug. 29. 

Indonesia: Protests Escalate, Turn Fatal

Tens of thousands of workers and students staged mass protests in Indonesia's capital Jakarta and 38 other cities, demanding higher wages, tax relief, stronger anti-corruption measures and parliament's resignation, among other things, Bloomberg reported on Aug. 28.

Indonesia: Protests Occur in 39 Cities

Mass protests erupted outside Indonesia's parliament building in Jakarta, drawing thousands of students, workers and activists demanding the dissolution of the legislature, the ratification of a long-delayed anti-corruption bill and an end to excessive perks for lawmakers, the Jakarta Globe reported on Aug. 25.

Indonesia: Thousands Demand Dissolution of Parliament in Mass Protests

Indonesia will create 500 new infantry battalions over five years in an initiative by President Prabowo Subianto and endorsed by his cabinet to embed the military deeper into social welfare programs, Bloomberg reported on Aug. 21.

Indonesia: 500 New Battalions To Be Created, Carry Out Social Programs

Demonstrators clashed with authorities over a property tax hike in Bone regency, South Sulawesi, Indonesia, rumored among residents to be 300%, though the local government says the actual rate was 65%, The Jakarta Post reported Aug. 20.

Indonesia: Tax Hikes Trigger Rash of Violent Protests

Assessments

A protest in front of police headquarters Aug. 31 in in Surabaya, Indonesia. Mass protests are poised to continue absent unlikely and large government concessions, but President Prabowo Subianto's position will remain secure.

While mass protests are poised to continue absent unlikely and large government concessions, President Prabowo Subianto's position will remain secure. 

Unrest in Indonesia Will Continue, but Not Dislodge the Government

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The Geopolitics of Trade

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Mercosur is increasingly opening its markets in pursuit of free trade agreements with partners around the world, particularly as U.S. protectionism shifts global trade dynamics.

The Geopolitics of Trade: What Changing Trade Dynamics Mean for Mercosur

Snapshots

Containers are unloaded from a ship at a terminal of Tanjung Priok Port, the main seaport in Jakarta, Indonesia, on Jan. 24, 2025. 

In exchange for a lower U.S. tariff rate, Indonesia accepted significant concessions, including purchasing commitments and regulatory changes, that risk limiting its long-term autonomy and industrial policy goals.

To Avoid Steeper Tariffs, Indonesia Reaches High-Stakes Trade Deal With the U.S.

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The impending full implementation of sweeping U.S. tariffs threatens to significantly disrupt export-driven ASEAN economies, which is driving countries to seek alternative trade partners.

The Geopolitics of Trade: U.S. Tariffs Give Impetus to ASEAN Trade Diversification

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French President Emmanuel Macron holds a press briefing during his trip to Singapore on May 30, 2025. 

Energy

U.S.-China Relations

The deals reached with Indonesia, Singapore and Vietnam expand France's role in Southeast Asia amid shifting global trade and defense dynamics, a welcome development for a region increasingly pinned between the U.S. and China.

Macron's Southeast Asia Tour Deepens French Footprint in the Region

Indonesian President Prabowo Subianto speaks during an economic event in Jakarta on April 8, 2025.

The president's efforts to consolidate power via welfare populism and security-minded governance could face challenges if economic headwinds strengthen, especially amid looming U.S. tariff threats.

How Subianto Is Making His Mark on Indonesian Politics

Timor-Leste

Myanmar

The flags of the countries in the Association of Southeast Asian Nations, or ASEAN, are seen on display.

Malaysia's chairmanship will be pivotal in navigating security risks as well as those from U.S. trade restrictions, potential Chinese economic coercion, and supply chain realignments that threaten ASEAN's cohesion and strategic autonomy.

Previewing Malaysia's 2025 ASEAN Chairmanship

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The lobby of the headquarters for the U.S. Agency for International Development is seen on Feb. 3, 2025, in Washington, D.C. 

Social Issues

Cuts to U.S.-funded humanitarian and development programs could worsen global health outcomes, destabilize security environments, accelerate democratic backsliding, and create opportunities for rival powers to expand their influence.

The Global Implications of Trump's Foreign Aid Cuts

Malaysian Prime Minister Anwar Ibrahim and Japanese Prime Minister Shigeru Ishiba hold a joint press conference on Jan. 10, 2025.

Japan is intensifying its diplomatic and security engagement in Southeast Asia through defense, trade and infrastructure agreements to counterbalance China and enhance regional stability.

Ishiba Strengthens Japan's Role in Southeast Asia With Defense and Trade Deals

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The West Front of the U.S. Capitol on Jan. 17 in Washington. Donald Trump will be inaugurated as U.S. president on Jan. 20.

Israel-Hamas Conflict

A look at what the coming week will bring -- and a list of recommended RANE articles from the week that was.

The Weekly Rundown: The Gaza Ceasefire, Trump's Inauguration

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U.S. President Joe Biden gestures to reporters after landing on the South Lawn of the White House on Sept. 22, 2024, in Washington, D.C. 

Trump's more aggressive and transactional approach could deliver quick wins for the U.S.'s position in the region, though it could also strain ties with key partners. 

Trump's Asia-Pacific Approach Will Test Biden's Gains

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Vehicles pass by a banner thanking outgoing Indonesian President Joko "Jokowi" Widodo and congratulating President-elect Prabowo Subianto and Vice President-elect Gibran Rakabuming Raka ahead of their Oct. 20 inauguration in Jakarta, Indonesia, on Oct. 17, 2024.

The Weekly Rundown: An Impeachment Case in Kenya, an Inauguration in Indonesia

The geopolitical foundation of modern Indonesia is the seas and ports that integrate the country's islands that stretch from the Indian Ocean to the Pacific. Of Indonesia's more than 17,000 islands, about 6,000 are populated by more than 300 ethnolinguistic cultures. The Dutch first consolidated large parts of modern Indonesia by the 19th century, and maintaining political unity of its culturally diverse islands poses the nation's primary geographic challenge. Indonesia's main island, Java, is home to about 60 percent of the country's population, with its largest ethnic group being the Javanese. Java is also Indonesia's agricultural heartland, producing coffee, sugarcane, rubber and rice. A spine of east-west volcanic mountains runs along the southern reaches of the island. These mountains orient Java's population to the north, toward the Java Sea. The Java Sea is the core of Indonesia, with the Karimata Strait, the Makassar Strait and the Flores Sea linking the main island of Java to its outer islands, stretching from Sumatra to Sulawesi to western New Guinea. These islands have been critical sources of oil, natural gas, copper and tin. Indonesia's disconnected landmasses and vast maritime stretches present difficulties and limitations to centralized control, as seen with the independence of East Timor in the 1990s and ongoing separatist concerns in Aceh and Irian Jaya. Holding this island nation together has required a strong central authority to balance regional aspirations and national interests &mdash; although it has tried to balance tight control with empowerment of regions in recent decades. Ultimately, Indonesia is burdened by the conflicting requirements of managing the populations of each island while expending resources to control its maritime core.

SITUATION REPORTS

EU, Indonesia: Trade Agreement To Be Finalized After More Than Nine Years

Indonesia: Jakarta Launches $1 Billion Stimulus Following Weeks of Protests

Indonesia: Ouster of Finance Chief Portends Looser Fiscal Policy

Indonesia: Protests Escalate, Turn Fatal

Indonesia: Protests Occur in 39 Cities

Indonesia: Thousands Demand Dissolution of Parliament in Mass Protests

Indonesia: 500 New Battalions To Be Created, Carry Out Social Programs

Indonesia: Tax Hikes Trigger Rash of Violent Protests

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