Indonesia Roundup: Record $46.4B education budget, zero deficit ambition, minister arrest

Logan Zapanta — Thu, 21 Aug 2025 10:55:58 Z

Indonesia sets record education budget of $46.4 billion for 2026

Indonesia has allocated Rp 757.8 trillion ($46.4 billion) for education in 2026, the largest budget in the country’s history. President Prabowo Subianto announced the figure during the presentation of the 2026 Draft State Budget. Of the total, Rp 178.7 trillion ($10.9 billion) is allocated for teacher and lecturer allowances covering salaries, competency development, and welfare. The government will also fund scholarships for 21.1 million students under the Smart Indonesia Programme (PIP) and 1.2 million under the Smart Indonesia Card (KIP) for College.

Anti-scam centre launched to curb online fraud losses

The Indonesian government has launched the Indonesia Anti-Scam Centre (IASC) to handle complaints, coordinate enforcement, and raise awareness on digital fraud and illegal financial activities. Minister of Communication and Digital, Meutya Hafid, said the IASC has received 225,000 public reports and blocked 71,000 accounts linked to scams. She added that the ministry will continue blocking suspicious sites, stressing the importance of public vigilance in avoiding online fraud.

Indonesia to establish 500 territorial development battalions by 2029

The Indonesian government has announced plans to establish 500 territorial development battalions across the country within five years, with 100 units to be formed annually. According to the Defence Ministry, the initiative has secured budget support from the Ministry of Finance. Defence Minister Sjafrie Sjamsoeddin confirmed that 100 battalions have already been created and emphasised that the units will assist government programmes, particularly in supporting downstreaming and national self-sufficiency efforts.

Prabowo targets zero state budget deficit by 2028

President Prabowo Subianto has pledged to eliminate Indonesia’s state budget (APBN) deficit by 2028, aiming for a surplus between 2027 and 2028. “I want to stand before this assembly and convey that we have succeeded in having a state budget with no deficit whatsoever,” Prabowo said during the 2026 Draft State Budget presentation on August 15. However, economists have questioned the feasibility of the plan. Paramadina University’s Wijayanto Samirin said a deficit-free budget is “unrealistic” given Indonesia’s spending needs on infrastructure, jobs, and human resources. He argued a 2% deficit would be more sustainable. Celios Executive Director Bhima Yudhistira also warned that forcing a surplus could hinder growth, noting that deficits below 3% of GDP are permitted by law.

Prabowo cabinet member arrested in KPK sting ops

Deputy Minister of Manpower Immanuel “Noel” Ebenezer Gerungan was arrested by the Corruption Eradication Commission (KPK) in a sting operation on August 21. He was detained at the Ministry of Manpower in Jakarta. KPK deputy chair Fitroh Rohcahyanto confirmed the arrest, saying Noel was implicated in an alleged extortion case but declined to give further details. Noel was appointed deputy minister on October 21 after backing President Prabowo Subianto in the 2024 election. He previously led Jokowi Mania in support of Joko Widodo and later shifted allegiance to Prabowo. Noel, who also joined the Gerindra Party, is the first member of Prabowo’s cabinet to be arrested by the KPK.

Philippines Roundup: 2026 budget, stricter e-gambling rules, judiciary’s fiscal autonomy

Logan Zapanta — Thu, 14 Aug 2025 13:58:38 Z

Philippines’ 2026 budget heads to Congress

Education and infrastructure will get the lion’s share of the proposed P6.793 trillion national budget for 2026, which the Department of Budget and Management forwarded to the House of Representatives on August 12. Next year’s budget, an increase of 7.4% from the enacted 2025 budget, includes allocations of P928.5 billion for education, P881.3 billion for public works, and P320.5 billion for the health sector. Manila gave higher priority to the defence sector this year, giving it the fourth-highest allocation of P299.3 billion, above the interior and local government departments. Lawmakers from the Congress’s lower chamber will scrutinise the expenditure program before crafting a General Appropriations Bill, which will guide government spending for the upcoming year.

Marcos signs law giving judiciary greater fiscal autonomy

President Ferdinand Marcos Jr., on August 14, signed the Judiciary Fiscal Autonomy Act , giving Philippine courts greater control over their budget and operations. The law mandates that the judiciary’s proposed budget be submitted directly to Congress and included in the national budget as is, with monthly automatic fund releases. It empowers the Chief Justice, with Supreme Court en banc approval, to reallocate funds for urgent needs and creates a Judiciary Trust Fund for court-generated revenues. Quarterly spending reports to the Executive and Legislative branches will be required to ensure transparency and uphold checks and balances.

AI can boost Philippine economy by P1.8 trillion, study says

Artificial intelligence could boost the Philippine economy by up to P1.8 trillion ($31 billion), equivalent to a 7% rise in gross value added, according to a study by Google Philippines and consulting firm Public First. Their 2025 Economic Opportunity Report said AI-driven skills could raise a worker’s productivity by P110,000 ($2,000) annually. Google’s Gabriel Roxas likened AI to adding a new growth engine to the country, with potential benefits in work efficiency, upskilling, and global competitiveness.

E-gambling ban from e-wallets sought

Philippine lawmakers have filed a bill to bar e-wallet apps from promoting or linking to online gambling platforms. House Bill 721 would make it illegal for e-wallet operators to redirect users to betting sites, display gambling ads, or promote wagers on their platforms. Offenders would face fines, with a third violation resulting in permanent loss of licence. The bill’s authors said e-wallets have become gateways to digital casinos and sports betting, raising social and cultural concerns.

Retail t-bonds now available in e-wallet apps

The Philippines’ Bureau of the Treasury has partnered with e-wallet giant GCash to make Retail Treasury Bonds (RTBs) more accessible through its application. The 31st tranche (RTB31), a five-year peso-denominated bond with a 6% interest rate, is open for investments starting at P5,000 until August 15. Powered by the Philippine Digital Asset Exchange and bonds.ph, the platform aims to broaden public participation in low-risk government securities that fund priority projects, with returns guaranteed upon maturity in August 2030.

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