The Haunting of Putrajaya
Issue 24— Key Developments Across Brunei, Indonesia, and Malaysia
Editor’s Note
by Haniva Sekar Deanty, Lead Editor - Maritime Crescent Desk
This week’s coverage reflects a widening spectrum of political, economic, and cultural dynamics across Southeast Asia, underscoring why grounded regional reporting remains indispensable. From state–federal tensions in Malaysia that could reshape Sabah’s political trajectory, to Indonesia’s renewed push for Rupiah redenomination, to Brunei’s efforts in preserving indigenous identity through language revitalisation, each development illustrates the complex and evolving landscape our team continues to monitor with care and depth.
Joining us from Malaysia, Sydney Gan, reports on the Sabah situation highlights how constitutional grievances can escalate into broader political realignments, especially as the state edges closer to elections that may influence Malaysia’s federal-level calculus heading into 2026.
Meanwhile our new Indonesian correspondent, Rayhan Jasin, examines how Indonesia’s plan of a long-discussed currency reform resurfaces longstanding debates on economic signalling versus structural fundamentals, an issue that will remain central as the Prabowo administration positions Indonesia for higher growth.
On the cultural front, our current Brunei correspondent, Syimah Johari, explores how Brunei’s Dusun language workshop offers a reminder that heritage preservation remains a critical pillar of national cohesion, aligning with wider ASEAN commitments to safeguarding indigenous identities.
As part of our ongoing effort to strengthen our editorial capacity across the region, we are supported by a growing cohort of correspondents who bring fresh insights from their respective local contexts. We look forward to continuing to deliver nuanced reporting that captures Southeast Asia’s most consequential developments.
Malaysia 🇲🇾
Sabah Demands Fair Share
by Sydney Gan, in Kuala Lumpur
The historic tension between East and Peninsular Malaysia deepens as Sabah fights an uphill battle to reclaim 40% of its contributed revenue from the Federal Government – a constitutional issue that is threatening to come to a head during the upcoming state elections.
The High Court, on 17 October 2025, ruled that the Federal Government had failed to fulfil Sabah’s constitutional entitlement to 40% of its net revenue from 1974 to 2021 – a period deemed the ‘Lost Years’. The Attorney-General’s Chambers has since declared that it will only partially appeal the court’s procedural defects, but not the judgement itself. The Federal Government’s refusal has left a sour taste in Sabah’s mouth, drawing significant criticism against Anwar’s coalition government and its hindrance of state politics.
The 40% special grant distinguishes itself from the federal budget allocations (a fund of approximately RM17.6 billion allocated to Sabah in 2026), as the use and distribution of the former fall squarely within the state government’s autonomy. The latter, though assigned to Sabah in name, is ultimately still controlled by the Federal Government. For an island state that has long struggled with underdeveloped infrastructure and digitalization, the 40% grant is a key resource to finance Sabah’s stalled development projects. More than that, it was specifically enshrined in the Federal Constitution to ensure Sabah would justly benefit from the incorporation of its abundant natural resources into nationwide supply chains, including oil and mineral resources. The High Court’s ruling thus frames this issue through the lens of deprivation, a conclusion that has stoked statewide public outrage against the injustice of the federal administration.
The 40% problem has already led to the resignation of YB Datuk Ewon Benedick, Minister of Entrepreneur and Cooperative Development, as well as the withdrawal of his United Progressive Kinabalu Organisation (Upko) from Anwar’s governing GRS-PH majority bloc in Sabah. Public sentiment in Sabah has increasingly turned against Anwar’s administration, with Sabah-based parties weaponizing rhetoric to step out of the Federal Government’s shadow over the political scene at home. The Nusantara Academy for Strategic Research commented that although the campaign for state elections has not officially started, the 40% issue has already been used to gain sympathy from Sabah voters, representing a potential turning of the tide in the election outcome.
Although a uniquely Sabahian issue, this outstanding controversy stands to undermine the influence of Anwar’s current political hold throughout the country. Crucially, this is not the first time Sabahians have been dissatisfied with the Federal Government this year – the Ministry of Education faced nationwide condemnation for its poor handling of the death of Zara Qairina at a religious boarding school in Sabah. In culmination, this shake-up undoubtedly unsettles the foundation of the Putrajaya-backed state coalition government, sending shockwaves across not just the state but also to federal level, as all eyes are fixed on Sabah as a political barometer for the Federal Government’s own elections, scheduled for 2026.
Sydney holds a Bachelor of Laws from King’s College London, where she focused on Human Rights Law, Criminology, and Public & Administrative Law. She is an Analyst at Asia Group Advisors, providing policy analysis and strategic guidance across the tech, sustainability, and gaming sectors in Southeast Asia, and supporting advocacy efforts in Malaysia through engagement with senior government officials and industry leaders. Prior to joining AGA, she worked in the social development sector in London, contributing to the Ukraine Judicial Training Programme through research on war crimes adjudication and the development of a legal training curriculum with high court magistrates.
Indonesia 🇮🇩
Too Many Zeros
by Rayhan
On November 8th, as part of the Finance Ministry’s short-term strategic plan, Minister Purbaya Yudhi Sadewa announced the government’s ambition to kick-off the redenomination process by drafting a new bill on “Rupiah Rate Change” that could be passed into law by early 2027. The aim is to remove three zeros from every denomination, i.e. Rp 1000 to become Rp 1, without affecting purchasing power or values of goods and services. Discussion on removing excessive zeros has circulated for nearly two decades, largely framed as a way to simplify transactions and enhance trade competitiveness.
Indonesia currently has one of the highest nominal exchange rates; Rp 100,000 (US$ 6.30), second only to Vietnamese Dong of ₫500,000. The Rupiah has also weakened, declining by more than 3 percent against the US dollars, Chinese Yuan, and Japanese Yen in the first half of 2025. Historically, Indonesia has had multiple currency reforms that took place in 1959, dubbed as the Gunting Syafruddin policy, and in December 1965 under President Soekarno’s administration. Yet, the two are not the same as the former halved the purchasing power of all banknotes in an effort to tackle hyperinflation, while the latter only simplified the nominals through the sudden introduction of new Rupiah bills.
If done properly, redenomination could boost financial confidence of the market due to its seemingly parity with other foreign currencies. It could also improve Indonesia’s investment climate by encouraging foreign players to hold savings in Rupiah. Proponents argue that simpler denominations makes tourism more attractive as Matt Mason, CEO of Australia’s leading travel network CT Partners described “international travellers would be able to ‘simpler mental maths’”, pointing to Bali’s high inbound tourism from Australia. This increased credibility for Rupiah on the international stage is also one of the main goals stated in the Finance Ministry strategic plan.
Critics, however, have bashed this proposal as a symbolic gesture to show superficial stability. Economist Syafrudin Karimi said that Indonesia doesn’t need the illusion, but rather meaningful growth. Redenomination may give psychological effect of a stronger currency, but without real improvements in the fundamentals, it could lead to an artificial inflation. If the society and market were not ready with the implementation, a rounding-up phenomenon could occur when, for example, goods X priced before at Rp 5.500 became Rp 6 instead of Rp 5.5 in the new currency. Cases like Afghanistan, Zimbabwe, and Israel illustrate how weak economic fundamentals coupled with incomplete socialization processes can worsen currency depreciation after redenomination.
Ultimately, redenomination may not even take place in the near future as the Governor of Bank of Indonesia, Perry Warjiyo stated that the process requires a long time and that the central bank’s current focus is boosting economic growth and ensuring long term stability. Whether the reform occurs during Prabowo’s administration remains to be seen. However, if it were to happen, it should be perceived as yet another economic policy tool to deliver one of his primary campaign promises of 8% growth by 2029.
Rayhan is pursuing an Erasmus Mundus Joint Master’s Degree in Public Policy at Central European University and the Institut Barcelona d’Estudis Internacionals, specializing in quantitative research, impact evaluation, and public sector economics. Previously, he worked in Japan as an educator and cultural exchange facilitator, leading student programs and teaching communication and academic writing. He brings experience in policy analysis, journalism, and mixed-methods research.
Brunei Darussalam 🇧🇳
Brunei’s Indigenous Language Initiative to Foster Regional Unity
by Syimah Johari, in Bandar Seri Begawan
Recently, a Dusun language introduction workshop was held to familiarise Pusat Da’wah Centre (PDI)’s officers and staff with the said indigenous local language. The PDI, a centre that spreads the teachings and understanding of Islam to the people of Brunei, aims to improve communication with the Dusun community following an increase of Dusun converts into Islam. This workshop also reflects Brunei’s desire to promote the understanding and respect for one of the local cultures and languages, aligning with regional priorities on indigenous language and cultural preservation within the ASEAN region.
The Brunei Dusun community, also identified as Sang Jati Dusun, are one of Brunei’s officially-recognised native tribes (7 Puak Jati), alongside Melayu Brunei, Belait, Tutong, Murut, Kedayan and Bisaya. Their name, Dusun, reflects their traditional livelihood of cultivating fruit orchards. In the past, they also practised nomadic farming and livestock rearing. Traditionally, the Brunei Dusun community spoke the Dusun language, which served as a key marker of their identity and cultural heritage. Over time, however, Bahasa Melayu (Malay) has emerged as the common language, particularly in schools and formal settings, where younger generations are primarily taught in Malay. Despite this shift, many Dusun cultural practices continue, showing a heritage that adapts while staying connected to ancestral roots.
The said workshop demonstrates Brunei’s commitment to preserving and respecting its local languages and cultures. While not the first effort to honour the Dusun heritage, this workshop further reinforces the importance of keeping their traditions alive. It also helps bridge the gap between official institutions and indigenous communities, ensuring that smaller and less visible groups like the Dusun, are recognised and valued within Brunei.
While the Brunei Dusun have their own distinct path, they share historical roots and heritage with the Dusun communities in Malaysia – particularly the Limbang-area Dusun in Sarawak and the Kadazan-Dusun in Sabah. The Limbang Dusun are culturally and linguistically closest to Brunei Dusun, whereas Sabah Kadazan-Dusun remains more distinct due to their larger populations and stronger preservation of language and traditions. This cross-border connection is not only historically significant but also aligns with the ASEAN Declaration of Cultural Heritage. It shows how even smaller indigenous communities, like the Brunei Dusun, are part of a broader Borneo identity.
Brunei’s initiatives, including the Dusun language workshop, shows the country’s efforts in maintaining local linguistic and cultural heritage. Even small initiatives can foster social harmony and cultural resilience.
Syimah is a graduate of King’s College London with a BA in International Relations. With a strong focus on diplomacy, regional cooperation, and development policy, she is passionate about contributing to meaningful change through public service. Currently, she is involved in poverty alleviation work through a local NGO.
Editorial Deadline 16/11/2025 11:59 PM (UTC +8)
Rayhan, your analysis is good and detailed. Your assessment correctly emphasises that, while redenomination is frequently viewed as a cosmetic tweak, it is ultimately a policy tool whose efficacy is determined by the strength of the underlying economic fundamentals. Without matching improvements in productivity, fiscal discipline, and market confidence, the metric risks providing merely nominal stability rather than actual gains.
Your distinction between psychological affects and structural outcomes is especially pertinent to Indonesia's current situation. As you mentioned, successful redenomination necessitates not just macroeconomic preparedness but also cautious socialisation and policy consistency in order to avoid disruptive price rounding or inflationary pressures.
Thank you for providing a detailed and evidence-based viewpoint on a topic that is sometimes oversimplified. I look forward to your continued contributions to the public policy debate.