TEMPO.CO, Jakarta - In the approximately nine months since taking office as President of the Republic of Indonesia in October 2024, Prabowo Subianto and his administration have introduced several new policies.
Notably, five of these policies have reversed decisions made during the presidency of Joko Widodo (Jokowi). The following are five Jokowi-era policies that have been revoked under the Prabowo administration.
1. Cancellation of the 12 Percent Value Added Tax (VAT)
In early January 2025, President Prabowo and Finance Minister Sri Mulyani decided to reverse the policy that would raise the VAT rate to 12 percent. The increase had originally been mandated by Law Number 7 of 2021 on Tax Regulation Harmonization, which scheduled the new rate to take effect on January 1, 2025.
After receiving strong public criticism, particularly because many basic goods were classified as luxury items and subjected to tax, Prabowo held a meeting with the finance minister on New Year’s Eve.
Following the meeting, the government officially limited the 12 percent VAT to luxury goods and services only. These include private jets, cruise ships, yachts, motor yachts, and ultra-luxury residences.
2. Resolution of Four-Island Dispute in Aceh and North Sumatra
President Prabowo concluded that the four islands contested between Aceh and North Sumatra belong to the province of Aceh. This decision was based on administrative documentation and reversed a previous regulation from the Jokowi administration.
In 2021, the Ministry of Home Affairs issued Regulation Number 58, revising Regulation Number 72 of 2019. The updated regulation had placed the islands under North Sumatra’s jurisdiction.
A cross-agency meeting, which included representatives from the Ministry of Maritime Affairs and Fisheries, the Navy, and the Indonesian Army, among others, had previously reached a consensus supporting this classification. Under Prabowo, that decision has been overturned.
3. Reduction of Budget for Nusantara Capital City (IKN)
According to the Ministry of Finance, IKN development during 2024 under the Jokowi administration used Rp43.4 trillion, which amounted to 97.3 percent of the Rp44.5 trillion allocated in the State Budget.
Under President Prabowo, the IKN budget has been significantly reduced to Rp13.5 trillion. Head of the IKN Authority, Basuki Hadimuljono, explained that the budget included around Rp5.4 trillion for road paving and infrastructure within the Central Government Core Area (KIPP), along with an additional Rp8.1 trillion earmarked for judicial and legislative buildings.
4. Ban on Sea Sand Exports
The Supreme Court annulled Government Regulation Number 26 of 2023, which had been enacted under Jokowi's leadership to govern the management of marine sedimentation. In Decision Number 5/P/HUM/2025, delivered on June 2, 2025, the court ruled that the regulation conflicted with Article 56 of Law Number 32 of 2014 on Maritime Affairs.
The ruling effectively prohibits the government from continuing sea sand export activities. The cassation judge declared that specific provisions within the regulation, namely Article 10 paragraphs (2), (3), and (4), were inconsistent with higher-level laws and therefore invalid.
5. Revision of the Zoning System for Student Admissions (PPDB)
President Prabowo also introduced changes to the zoning system used for New Student Admissions (PPDB), which was launched during Jokowi’s term.
According to Minister of Primary and Secondary Education Abdul Mu’ti, the PPDB mechanism will undergo structural changes for the 2025/2026 academic year. These revisions go beyond the technical application process, with the system itself being renamed as the domicile system.
M. Raihan Muzzaki, Ilona Estherina, Rachel Farahdiba, Daniel Ahmad Fajri, Hendrik Yaputra, Riri Rahayu, Dicky Kurniawan, and Raden Putri contributed to this article
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