Indonesia Roundup: 100 boarding schools for low-income students, Chinese labour in Indonesia, Worldcoin Crypto
Clean energy and infrastructure
Indonesia and Japan have reinforced their partnership in renewable energy and sustainable infrastructure under the Asia Zero Emission Community (AZEC) framework, marked by the financial close of the 80-megawatt Muara Labuh Geothermal Power Plant in West Sumatra, which is set to begin construction and target commercial operations by early 2027. This was formalised during a signing ceremony in Jakarta on May 5, 2025, between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and former Japanese Prime Minister Fumio Kishida, who serves as Japan’s special envoy to AZEC.
Chinese labour in Indonesia
As Indonesia and China mark 75 years of diplomatic relations in 2025, concerns over the growing presence of Chinese foreign workers (TKA) in Indonesia have surfaced as a major point of contention, according to experts at a seminar hosted by the Paramadina Public Policy Institute (PPPI) and the Indonesian Sinology Forum (FSI) in Jakarta on May 5. Academics and policy analysts stressed that the issue reflects broader global anxieties, also seen in regions like Africa and Latin America.
GDP growth slowest in more than three years
Indonesia's economy grew by 4.87% year-on-year in the first quarter of 2025, marking its weakest pace since Q3 2021 and slightly below analysts’ expectations of 4.91%, according to official data released on May 5. The slowdown, down from 5.02% in the previous quarter, reflects mounting economic pressures, including sluggish global trade, weaker domestic demand, and tighter fiscal conditions. On a quarter-on-quarter basis, GDP contracted by 0.98%. Despite Ramadan and Eid festivities in March, household spending—accounting for over half of GDP—rose only 4.89%, the slowest in five quarters. President Prabowo Subianto’s goal to boost growth to 8% over his term faces increasing headwinds, including potential U.S. tariffs and global economic uncertainty.
Worldcoin Crypto Project
Indonesia has suspended the Worldcoin project, an iris-scanning cryptocurrency initiative co-founded by OpenAI’s Sam Altman, amid growing concerns over personal data use. The move follows public complaints about suspicious activity, with authorities citing the need to investigate potential privacy violations. Worldcoin, launched in 2023, uses biometric scans to create a "World ID" that verifies human identity for digital transactions. While the company claims the data is encrypted and secure, similar concerns have led to scrutiny in countries like Hong Kong, Kenya, Spain, and Portugal.
100 boarding schools for low-income students
President Prabowo Subianto has confirmed plans to launch a national “people’s school” program with a boarding system aimed at supporting children from Indonesia’s lowest-income groups. In a cabinet meeting on May 5, 2025, he stated that at least 100 boarding schools will be built across various regions, with the initial rollout expected in July. The program, designed by the Ministers of Social Affairs and Education, seeks to improve educational equity and provide opportunities for children in economic deciles one and two.
