AmCham Update Vol. 7 #111

Indonesia Wiretap Scandal Threatens Prabowo-Jokowi Relationship, Jokowi Shows his Diploma in Court, IDX to Reveal Details on Shareholders with Stakes Above 1 Percent, Q3 Growth Beats Predictions, Indonesia Plans to Stop Passing Resource Exports through Third Countries

Nov 06, 2026

Wiretap Scandal Threatens Prabowo-Jokowi Relationship

Former National Police Chief Listyo Sigit Prabowo is among four senior police officers named as suspects in an illegal wiretapping operation allegedly targeting President Prabowo Subianto and other prominent figures. Listyo, who stepped down as police chief last month, was immediately fired from his current position as presidential chief of staff.

The case has fueled speculation over growing friction between Subianto and former President Joko Widodo. Listyo is a close ally of Widodo, who appointed him as National Police Chief in 2021. Political analyst Arfiki Chaniago of Aljabar Strategic described Listyo’s detention as “an open rupture in the relationship between Jokowi and Prabowo.”

The case came to light on Nov. 3, when the National Police announced that three figures — Listyo, National Police Legal Division Head Inspector General Ahrie Sonta Nasution and Inspector General Eko Hadi Santoso — had been detained. Police allege that the suspects intercepted telephone numbers illegally between 2025 and 2026. The government has said the case could amount to “treason.”

“The suspects are alleged to have carried out nonprocedural or illegal tapping against the telephone numbers of the president, state officials, political and media figures, community leaders, NGO activists, and businesspeople,” Criminal Investigation Agency Head Asep Safrudin said.

On Nov 5, police added the name of former Police Technology and Information Division Head Inspector General Slamet Uliandi as a fourth suspect. Investigators allege that Slamet authorized the wiretaps and later approved the deletion of wiretap records. He has not been detained due to a health condition following a stroke. The other three suspects are being held at the Mobile Brigade Corps detention facility.

The suspects face charges related to unlawful interception, unauthorized access to electronic systems and the alteration or deletion of electronic information under the Criminal Code and Electronic Information and Transactions Law.

State Secretary Minister Prasetyo Hadi said on Nov 4 that the alleged surveillance could constitute an act of treason. Police have not charged the suspects with treason.

Coordinating Minister for Law, Human Rights, Immigration and Corrections Yusril Ihza Mahendra subsequently said investigators were examining whether the operation may have been intended to prevent the president from exercising his authority. The investigation into the motive remains ongoing.

Subianto dismissed Listyo as presidential chief of staff on Nov. 4, less than two months after appointing him to the position following the Oct. 1 cabinet reshuffle.

Meanwhile, thousands of military troops have been deployed to the capital after the arrests. A widely circulated internal Indonesian military document disclosed plans to mobilize nearly 21,000 Navy personnel to reinforce security in Jakarta.

Navy spokesperson First Adm. Tunggul M. Han confirmed the deployment on Nov 4, saying it was intended to “maintain national security and stability” and prepare for upcoming military exercises.

Nicky Fahrizal of the Centre for Strategic and International Studies (CSIS) said the controversy could also impact Vice President Gibran Rakabuming Raka, Widodo’s son, who is under threat of removal from office due to a Supreme Court ruling saying his certificate of high school equivalency was invalid when he ran in 2024.

Indonesian Democratic Party of Struggle (PDI-P) Secretary General Hasto Kristiyanto said on Nov. 5 that political parties are discussing a parliamentary inquiry into Gibran’s educational qualifications.

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Jokowi Displays his Diploma in Defamation Trial

Adding to a growing climate of political tension involving alleged wiretaps and the educational credentials of his son, the vice president, former President Joko Widodo displayed his original university diploma in court on Thursday as he confronted allegations that he forged his academic credentials.

The diploma, dated Nov 5, 1985, was shown to judges, spectators and members of the public watching the session on live television.

Widodo testified as a witness in the defamation trial of former Youth and Sports Minister Roy Suryo and social media activist Tifauzia Tyassuma, who have repeatedly questioned the former president’s bachelor's degree from Gadjah Mada University (UGM).

It was a rare appearance by a former president in court and marked a dramatic turn in a controversy that has followed him since his first presidential campaign victory in 2014.

Before holding up the diploma, Widodo asked permission from the presiding judge, who initially hesitated. "If permitted, I would also like to show it to the visitors, Your Honor," Widodo told the judge.

He then raised the weathered diploma, while the moment was broadcast live.

During his testimony, Widodo said he first used the diploma after completing his university studies. "The diploma was first used in 1985 or 1986 at PT Kertas Kraft Aceh, Your Honor," he told the court, when he was applying for a job at the company.

His academic credentials became the subject of allegations during his rise to national prominence. He has repeatedly denied the accusations, describing them as slander and injustice, and has maintained that he graduated from UGM. The university has also defended the authenticity of his academic records.

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IDX to Reveal Details on Shareholders with Stakes Above 1 Percent

Taking another step on the long road to market respectability demanded by global index provider MSCI, the Indonesian Stock Exchange (IDX) will begin publishing details on shareholders who own more than 1 percent of a publicly traded firm as a way to increase transparency.

The shareholding details will be published on the IDX website monthly, starting with data current as of Oct 30, the stock exchange and central securities depository said in a joint statement on Nov 4. "It provides a clearer picture of a company's shareholding structure, concentration of ownership and the %u2060ownership relationships between the controlling party and its affiliates," the statement said.

The regulation was passed by the IDX Board of Directors and approved by the Financial Services Authority as a way to clarify often-muddy local ownership structures.

Under the updated directive, listed companies must provide detailed ownership breakdowns for any shareholder with an equity stake above 1 percent. The details must disclose whether the shareholder is a controlling entity or an affiliated individual or institution.

The lack of information about the real ownership of listed stocks has been a chief complaint of MSCI and others. Without genuine transparency, analysts have said, stock manipulation plagues the market. The condition has persisted in the IDX for decades.

Last month, MSCI warned %u2060it may downgrade Indonesia's stock market to "standalone" status, saying its clients %u2060have flagged opaque shareholding structures and coordinated trading activity. The index provider is studying how it will proceed, with a decision due in June next year.

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Q3 Growth Beats Expectations

Indonesia achieved robust economic growth of 5.47 percent year on year in the third quarter on the back of an improved trade balance and despite weakening in consumer spending compared to the previous three months. The figure beat most expectations.

The figure was released by Statistics Indonesia (BPS) on Nov 5 and is an improvement over second quarter GDP growth of 5.29 percent. The third quarter number brings economic growth for the first nine months of the year to 5.45 percent.

BPS official Edy Mahmud said the economies of “Indonesia’s main trading partners were still growing amid global uncertainty,” which helped boost Indonesia’s performance.

Indonesia recorded a trade deficit earlier this year, due largely to a spike in oil prices after the US and Israel went to war against Iran. Indonesia’s net exports had been a drag on GDP growth this year, but improved in the third quarter.

Edy said that net exports only pulled growth down 0.28 percent in the third quarter, compared to 0.9 and 1.01 percent in the second and first quarter, respectively. Exports in the third quarter grew at a faster annual pace than in the previous three months.

Coordinating Economy Minister Airlangga Hartarto told reporters that President Prabowo Subianto had given instructions “to ease imports” and that the government was looking to adjust regulations that slowed exports.

BPS said household spending was up only 5.04 percent yoy in the third quarter, weaker than the 5.06 percent recorded in the previous quarter. Edy said the share was “the lowest” since the third quarter of 2022.

Government spending, up 8.95 percent yoy, was among “the main contributors” to third-quarter GDP growth, Edy said, largely as a result of salary payments for recent hires. Government spending was also pushed by the free meals program, Edy said.

Bank Danamon chief economist Irman Faiz, who had forecast third quarter growth of 5 percent, wrote in a note on Nov 5 that “domestic demand was firmer than we expected, while the external sector became less of a drag.” He said he doubted that the pace would be sustained in the fourth quarter. Irman expects full-year GDP growth of 5.35 percent.

Permata Bank economist Faisal Rachman wrote in a note the same day that third quarter growth “warrants a cautious interpretation” given that the demand side was soft.

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Indonesia Wants to Skip the Middle Man in Natural Resource Exports

Sounding a recurring nationalistic theme, Indonesia wants to bypass “neighboring countries” as intermediaries for natural resource exports, including crude palm oil (CPO), arguing that third-country routes reduce the value of exports.

Coordinating Minister for Food and Agriculture Zulkifli Hasan criticized the practice of commodities passing through third countries before reaching their final buyers, saying it creates a major gap between the prices received by Indonesian exporters and those in destination markets.

“CPO is priced at Rp 27,000 ($1.50), but we sell it to our neighbor for Rp 15,000. That means we lose Rp 12,000. This has gone on for years. We no longer want to turn a blind eye,” he said on Nov. 4.

Zulkifli argued that intermediary arrangements divert potential gains from Indonesia. He linked the issue, along with forest fires, fuel queues and scrutiny from MSCI over Indonesia’s capital market, to broader concerns over economic stability and national sovereignty.

“Whenever something goes wrong, Indonesia is the one that loses,” he said.

The statements follow Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia’s Nov 2 announcement that Indonesia would stop the transshipment of natural resource exports through third countries and require shipments to be sent directly to their destination markets.

“There must be no more shipments of our natural resources that transit through specific countries,” Bahlil said. “If we are sending goods to China, they should go directly from Jakarta to China, not stop over in that ‘particular’ country.”

The National Energy Council has (DEN) backed the policy. DEN Member Satya Widya Yudha said direct exports could reduce margin leakage, improve transaction transparency and strengthen bargaining relationships with end buyers.

“Theoretically, direct exports provide three benefits: reducing margin leakage in the intermediary chain, increasing transaction transparency, and strengthening direct bargaining relationships with end buyers,” he said on Nov. 3, adding that DEN plans to quantify the potential economic gains.

While not naming Singapore directly, the policy comes amid broader tensions between Indonesia and the island state over transboundary haze and natural gas supplies. Singapore is a major trading hub for the region.

Businesses, however, said the policy may not be a change for some exporters. Tony Wenas, president director of Freeport Indonesia, said the company’s exports consistently go direct to buyers. “We keep it straightforward, we send it to the buyer,” he said on Nov. 4.

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Member Announcement | Equinix Indonesia

Accelerating Indonesia's AI-Ready Digital Future with Equinix JK1 Data Center Phase 2

As Indonesia's digital economy continues to expand, the need for scalable, high-performance digital infrastructure is growing rapidly. We are excited to announce the launch of Equinix JK1 Data Center Phase 2 in mid-November, marking a significant milestone in our commitment to support the country's digital transformation and AI ambitions.

This expansion in Jakarta substantially enhances our capacity with four additional data halls, more than 1,000 new cabinets, and increased power availability to accommodate the growing requirements of enterprises, cloud providers and digital-native businesses. Designed for the next generation of computing, the facility will be ready for liquid cooling, enabling support for high-density AI, machine learning, and accelerated computing workloads while improving operational efficiency and sustainability.

Beyond capacity expansion, the Equinix JK1 Phase 2 also strengthens our vision of becoming Indonesia's leading interconnection hub, providing customers with seamless connectivity. By bringing together critical digital infrastructure and connectivity, we aim to help organizations innovate faster, scale efficiently and connect to the global digital economy.

To celebrate this exciting milestone, we invite potential customers, partners and members of the American Chamber of Commerce in Indonesia to join us for a tour of the facility, explore its latest innovations, and learn how Equinix JK1 can support their evolving business and AI infrastructure needs. Please feel free to contact us for more information. We look forward to welcoming you and showcasing the future of digital infrastructure in Indonesia.

Get to Know Our Members | MOTION PICTURE ASSOCIATION

Get to Know Our Members | MOTION PICTURE ASSOCIATION

The Motion Picture Association (MPA) represents the interests of seven major international producers and distributors of filmed entertainment. To do so, the MPA promotes and protects the intellectual property rights of these companies and conducts public awareness programs to highlight the importance of content protection to movie fans around the world. These activities have helped transform entire markets, benefiting the film and television industries in each country, as well as foreign and local filmmakers.

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Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Donna Priadi and written by the AmCham Staff.

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