This edition of the Indonesian Update features a main report titled “Negative Outlook for the Indonesian Economy: Government Policy Alarm.” This paper examines warning signals about Indonesia’s economic prospects arising from various policy developments and global dynamics. Through this discussion, the main report also offers several policy recommendations that the Government could consider to strengthen Indonesia’s economic resilience amidst increasing global uncertainty.

In the economic field, this edition contains two thematic analyses. First, “Analysis of the Impact of the Indonesia–US Trade Agreement on the Indonesian Economy and Policy Recommendations,” which discusses the potential implications of the trade agreement between the two countries on trade, investment, and Indonesia’s economic competitiveness. Second, “A US–Israel vs. Iran War in 2026: Analysis of Economic and Energy Impacts for Indonesia and Policy Recommendations,” which examines the potential impact of geopolitical conflict in the Middle East on energy price stability, global supply chains, and Indonesia’s energy security.

In the legal field, the Indonesian Update presents two articles highlighting the dynamics of civil space and governance. The article “Guilty Verdicts for Hundreds of Political Prisoners: Reflections on Civil Space” examines the implications of the legal verdicts against hundreds of political prisoners for the state of civil liberties and democracy. Meanwhile, the article “General Principles of Good Governance in the Dynamics of Indonesia’s Participation in the Board of Peace” discusses the importance of good governance principles in ensuring that Indonesia’s participation in international forums remains in line with the principles of accountability, transparency, and national interests.

In the social sector, this edition addresses two important issues related to public health and well-being. The article “The Urgency of Improving Indonesia’s Commitment to Child Suicide Prevention” discusses the growing attention to children’s mental health and the importance of strengthening suicide prevention policies through a cross-sectoral approach. Furthermore, the article “The Benefits of Urban Public Health Protection against Air Pollution Threats” highlights the importance of public health protection policies in urban areas facing increasingly serious air pollution risks.

Through the monthly publication of the Indonesian Update, which raises various strategic and current issues, it is hoped that this report could contribute to policymakers in government institutions, business actors, academics, researchers, think tanks, and civil society, both at home and abroad, to obtain contextual analysis of the economic, legal, and social dynamics in Indonesia, while enriching understanding of the challenges and direction of future public policy.

Happy reading.

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