The first three months of 2025 were a turbulent period for Indonesia. The country faced a multidimensional storm, ranging from controversial government policies, waves of demonstrations, to increasingly suffocating economic pressures.

One of the most controversial policies was the massive budget cuts in strategic sectors such as energy subsidies, education, and healthcare. Although the government claimed this measure was an effort to address the budget deficit, the public considered the policy potentially exacerbating social inequality. At the same time, funding for large-scale infrastructure projects and military modernization programs was maintained.

Tensions immediately surfaced. On social media, the hashtag #IndonesiaDark spread widely, not only as a critique of the state of democracy, but also as an expression of frustration over the growing economic pressures. Purchasing power was declining, basic necessities were rising, and many felt increasingly detached from security—both economically and politically.

The situation escalated when discussions emerged about revising the TNI Law, which would have allowed the military to become more involved in civilian affairs. This proposal was met with strong opposition from many groups. A coalition of students, human rights activists, and civil society organizations took to the streets, voicing concerns that democratic space would be further eroded.

This uncertainty has also spread to the financial sector. Since the new cabinet took office last October, the Jakarta Composite Index (JCI) has plummeted by 23%, its sharpest decline since the 2020 pandemic crisis. Foreign investors have withdrawn their funds, concerned about the government's policy direction and its slow handling of the rapidly evolving situation.

So, what does The Conversation Indonesia team think about the situation in Indonesia during the first three months of this year?

In the latest episode of SuarAkademia, The Conversation Indonesia's Podcast Producer, Muammar Syarif, chats with three members of the editorial team: Anggi Lubis (Acting Chief Editor), Robby Irfany Maqoma (Acting Managing Editor), and Andi Ibnu Masri Rusli (Economics Editor).

Anggi highlighted that in transitional situations like the past three months, policies implemented without adequate social preparedness and public communication have the potential to spark resistance. Several policies launched earlier this year, she noted, have fueled public dissatisfaction due to their rushed and non-inclusive formulation.

Furthermore, the central government's budget efficiency policies have drawn criticism, particularly for their sweeping implementation without considering the context of the affected sectors. He believes that efficiency measures without adequate mitigation strategies could lead to disruptions to national stability.

Robby added that higher education is also under scrutiny. He feared that cuts to the higher education budget would directly impact the well-being of lecturers and the broader academic community, ultimately weakening the research climate and educational quality that have long been pillars of knowledge development in Indonesia.

Robby also highlighted the government's response to issues and criticism raised by the public. According to him, the government's responses to several issues have actually further infuriated the public and failed to calm the situation.

Meanwhile, Andi believes the sharp decline in the stock market should be a serious concern. This situation reflects declining investor confidence and indicates economic uncertainty that requires a serious response from the government. He added that political stability and clarity of policy direction are crucial for the future investment climate.

Source: The Conversation

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