Former general Prabowo takes office in Indonesia

In today’s newsletter:

• Indonesia’s new president takes office

• Israel attacks Hizbollah-linked financial institutions

• Crypto has designs on real estate

Good morning. Prabowo Subianto was sworn in as Indonesia’s president yesterday with ambitious plans to boost growth while claiming a bigger international role for south-east Asia’s largest economy.

The former military general takes over from Joko Widodo eight months after a landslide victory in February’s presidential election. His swearing-in ceremony was attended by leaders and senior officials from more than 30 countries, including Singapore’s Prime Minister Lawrence Wong, Philippine President Ferdinand Marcos Jr and Chinese vice-president Han Zheng.

The inauguration caps a remarkable turnaround for Prabowo. The former commander of the country’s feared special forces was dismissed from the military and once banned by the US for the alleged kidnapping of democracy activists. He has always denied the accusations.

Prabowo won over millions of Indonesians with the backing of the highly popular Widodo and by promising policy continuity as well as free school lunches, a massive programme expected to cost $28bn.

But he has already indicated a departure from his predecessor in everything from government spending to foreign policy. Here’s what to know about the Prabowo presidency.

Here’s what else I’m keeping tabs on today:

• Economic data: Malaysia reports advance third-quarter GDP.

• Monetary policy: China’s central bank announces its one-year loan prime rate decision.

• Energy transition: Singapore International Energy Week begins with speakers including industry executives and energy ministers from Tanzania, Cambodia, Laos, Australia and New Zealand, discussing energy security and transition plans.

• Samoa: The Commonwealth heads of government meeting 2024 begins in Apia, Samoa, the first to take place on a developing Pacific Island.

Five more top stories

1. Businesses and households in major economies are struggling to bounce back from the era of high inflation as precarious growth prospects and political uncertainty weigh on their confidence. Although economic activity remains relatively firm, confidence indicators have slid sharply or remain stuck in negative territory, according to research for the FT.

2. Israel has launched a wave of air strikes across Lebanon after its military said it would target Hizbollah-affiliated financial institutions. The attacks will further heighten Lebanese fears that Israel is expanding its offensive against the Iranian-backed militant group beyond military infrastructure.

3. Elon Musk’s pledge to dole out money to registered voters who sign his petition backing free speech and the right to bear arms has garnered scrutiny for potentially violating election rules. The billionaire entrepreneur, who has become one of Donald Trump’s biggest corporate backers and loudest cheerleaders, awarded a $1mn cheque on Saturday to an audience member at a rally in Harrisburg, and another at an event in Pittsburgh yesterday, as he campaigned in Pennsylvania.

• Trump’s vulgar rally: The Republican candidate fuelled further questions about his state of mind on Saturday by delivering off-colour remarks during an event in Pennsylvania.

• More US election coverage: Is Kamala Harris losing support among Black men? Trump has made inroads with a traditionally Democratic demographic that will be crucial in the election.

4. Shares in nuclear energy companies surged to record highs last week after Amazon and Google struck landmark deals to deploy the first small modular reactors (SMRs) in the US. Investors regarded the agreements as evidence that a nuclear renaissance is gathering pace, after a slump following the Fukushima accident in Japan in 2011.

5. Members of Boeing’s largest labour union will vote on Wednesday whether to end a costly strike that has crippled production for more than a month. The vote will take place on the same day that the stricken US plane maker is due to report its results for the third quarter. Here’s more on Boeing’s critical week.

House & Home

Buying blockchain-listed “slices” of properties is slowly gaining popularity among crypto fans as high house prices in large cities like London and New York make buying real property unaffordable for many. But there are a host of issues, not least, investors complain, difficulties selling tokens and problems arising from tenant issues. Can this nascent but troubled market find its feet beyond the crypto crowd?

We’re also reading . . . 

• Nikon: The Japanese company’s chipmaking equipment has escaped US export restrictions to China, but the situation is volatile. “The rules [on export controls] could get changed tomorrow,” president Muneaki Tokunari told the FT.

• ‘If you cough, you’re off’: Pilita Clark wonders why it is so hard to follow this first rule of flu season office etiquette.

• Artificial intelligence: Here’s how artificial intelligence companies are infusing their chatbots with more personality.

Chart of the day

The Japanese yen has fallen sharply in recent weeks, hitting levels not seen since before a sudden surge in the summer that reverberated across global markets. Here’s what’s driving the Japanese currency’s slide.

Take a break from the news

Meet China’s most famous foreigner: Canadian comedian Mark Rowswell, better known by his Chinese name Dashan. Rowswell rose to prominence doing stand-up in perfect Mandarin, and is now touring the country in a Chinese-language production of The Shawshank Redemption. “His almost mythological status, like many myths, is tied up in the soul of a nation,” writes Shanghai correspondent Thomas Hale in this must-read profile.