Indonesian Political, Business & Finance News

Archive: 12 March 2026

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Trump Orders Release of 172 Million Barrels from US Strategic Petroleum Reserve Amid Global Supply Crisis

President Donald Trump has ordered the release of 172 million barrels from the US Strategic Petroleum Reserve, coordinated with a broader International Energy Agency effort to release 400 million barrels from 32 member nations, in response to surging global oil prices driven by military conflict between the US-Israel coalition and Iran. Despite the coordinated release, global oil markets remain volatile, with West Texas Intermediate crude rising 7.5 per cent to approximately $93.80 per barrel and Brent crude climbing 7.7 per cent to $99.10 per barrel, as commercial shipping through the strategically critical Strait of Hormuz—which carries roughly 20 per cent of global oil supply—has nearly ground to a halt.

Former Minister of Religion Yaqut Cholil Qoumas Formally Questioned by Anti-Corruption Commission Following Failed Pre-Trial Challenge

Former Minister of Religion Yaqut Cholil Qoumas appeared for his first formal questioning by the Corruption Eradication Commission (KPK) on 12 March 2026 as a suspect in an alleged corruption case involving the determination of hajj quotas and pilgrimage arrangements for 2023–2024. The questioning follows the South Jakarta District Court's rejection of his pre-trial challenge on 11 March, establishing his legal status as a suspect. The KPK estimates confirmed state losses at Rp622 billion based on an audit by the Finance Inspection Board, with Qoumas and his special staff Ishfah Abidal Aziz accused of abusing authority in setting additional hajj quotas outside proper procedures.

Astra Group Vehicle Sales Report for February 2026

PT Astra International Tbk (ASII) captured 47 percent of Indonesia's four-wheeled vehicle market in February 2026 with sales of 38,074 units, representing a 9 percent increase from January. The company's cumulative sales for January–February 2026 reached 72,941 units, whilst national vehicle sales grew approximately 10 percent year-on-year to 147,631 units during the same period, with Astra executives noting the Ramadan and Eid seasons could provide further impetus for vehicle demand.

China introduces ultra-strong carbon fibre claimed to be world's strongest

China has unveiled the domestically developed T1200 ultra-strong carbon fibre, claimed to be the world's strongest, intended for applications in aerospace, low-altitude economy and humanoid robotics. China National Building Material Group has achieved mass production capacity at the level of hundreds of tonnes annually, making China the first nation to produce such high-quality carbon fibre at scale. The breakthrough from laboratory development to large-scale manufacturing is expected to accelerate adoption of the carbon fibre across various high-technology industries.

Throughout 2025, Ajinomoto Reduces Plastic Usage by 1,736 Tonnes

Ajinomoto Indonesia has achieved a reduction of 1,736 tonnes of plastic usage throughout 2025 through innovative, environmentally-friendly packaging solutions including paper-based AJI-NO-MOTO packaging and mono-material Sajiku containers. The initiative, part of the Ajinomoto Health Provider programme, collaborates with multiple waste banks and community facilities to manage 352 tonnes of waste whilst reaching 2,400 participants through educational programmes. The effort addresses projections that Indonesia's annual plastic waste could reach 9.9–12.4 million tonnes in 2025, representing approximately 14 per cent of total waste generation.

West Jakarta One-Stop Service Unit Claims Kalideres Crematorium Permit Process Complies with Legal Framework

The Jakarta West Unit for Investment Management and One-Stop Integrated Services (UP PM-PTSP) has asserted that the licensing and construction process for a funeral home and crematorium by the Rumah Swarga Abadi Foundation in Kalideres is proceeding in accordance with applicable legal procedures. However, residents have staged renewed protests against the project, challenging the issuance of the Building Permit (PBG) without environmental impact assessments, claiming the facility violates local regulations and is inappropriate for a densely populated residential area.

Indonesia Poised for Windfall Profits from Iran-Israel Conflict, Says Finance Minister

Finance Minister Purbaya Yudhi Sadewa forecasts that Indonesia's key export commodity prices will rise significantly due to the Iran-Israel conflict, potentially offsetting increased energy subsidy costs in the 2026 budget. Coal prices have already surged 28% year-to-date to US$107.50 per tonne, whilst crude oil, palm oil, and nickel prices also show substantial gains, reflecting both substitution effects and safe-haven market sentiment.

35 Youngest Billionaires in the World in 2026 Dominated by Generation Z, Majority Business Heirs

Forbes has released its 2026 list of the world's youngest billionaires, identifying 35 individuals under age 30 with a net worth of at least $1 billion USD, predominantly from Generation Z. The majority of these young billionaires inherited family businesses, with their combined wealth reaching $92.4 billion USD, though this represents a decline from the previous year's $152.3 billion. Whilst American billionaires on the list are primarily self-made entrepreneurs, most European and Asian counterparts inherited their fortunes, with notable examples including Red Bull heir Mark Mateschitz and Stripe co-founder John Collison.

Transportation infrastructure ready for 2026 Eid homecoming: Ministry

Indonesia's government has completed comprehensive preparations for the 2026 Eid homecoming, implementing safety inspections, discounted transport tickets, and digital monitoring systems across land, sea, air, and ferry networks. The Ministry anticipates 143.91 million travellers—though actual numbers may exceed forecasts based on 2025 data—supported by buffer zones at key ports, 7,159 CCTVs, and coordinated traffic management schemes involving state agencies and private sector partners.

Surabaya City Council Criticises Unroadworthy Waste Collection Fleet

The deputy chair of Surabaya's city council has called on the city's Environmental Office to repair its waste collection fleet, which he contends is in poor condition and damages the city's image. The critic argues that allowing unroadworthy waste trucks to operate whilst the Transport Office regularly conducts inspections of other vehicles represents a contradiction, and has also suggested improvements to the Benowo landfill facility to prevent soil contamination.

BMKG Predicts Potential Extreme Drought in Bali in 2026 Due to El Niño

Indonesia's Meteorology, Climatology, and Geophysics Agency (BMKG) has predicted an extreme dry season in Bali in 2026, lasting approximately six months from March onwards, driven by a weak El Niño phenomenon occurring from July to October. Northern Bali, including Buleleng Regency, Nusa Penida Island, and southern Klungkung Regency are identified as the most vulnerable areas to extreme drought, with BMKG recommending efficient water resource management and enhanced preparedness measures for local governments, agricultural sectors, and communities.

Jasindo Partners with Jakarta MRT and Jamkrindo to Expand Insurance Access

PT Asuransi Jasindo is strengthening cross-sector collaborations with institutions including Bahana Securities, Jakarta MRT, and Jamkrindo to expand insurance protection coverage and increase market penetration. The partnerships include passenger protection schemes for MRT users covering medical emergencies up to IDR5 million, death/disability benefits, and lost item compensation, whilst joint marketing arrangements with Jamkrindo aim to reach approximately 10,000 new customers.

Bali Provincial and Central Government Progress Development of Waste-to-Energy Facilities

The Bali Provincial Government and central government are collaborating to accelerate the development of Waste-to-Energy (PSEL) facilities to manage the region's growing waste volumes from its tourism sector. With land preparation and community engagement already underway, local authorities are requesting clear timelines from the central government to ensure effective project implementation. The central government has committed to overseeing the acceleration of PSEL development through coordination with the Development and Management Business Entity Danantara.

Body of Freeport shooting victim transported to Jakarta

Simson Mulia, a 48-year-old employee of CV Mpeigelah, was shot and killed by unknown assailants in the Grasberg open-pit mine area in Mimika, Papua in early March 2026. His body has been flown to Jakarta for burial in his hometown of Bandung, West Java, whilst authorities conduct investigations into the incident amid ongoing security concerns in the mining region.

DPR Legislative Body Ensures Copyright Law Revision Also Protects Journalistic Works, Requires Authorisation for Use

The head of Indonesia's DPR Legislative Body (Baleg) has confirmed that the revised Copyright Law will provide protection for journalistic works, with any use by third parties requiring explicit authorisation. The revision, which includes a focus on reforming royalty mechanisms for musicians, is expected to be completed in 2026, with the draft targeting completion in April.

Hasan Nasbi Called to Palace by Prabowo, What Was Discussed?

Former Presidential Communication Office (PCO) head Hasan Nasbi was summoned to the presidential palace in Jakarta to meet with President Prabowo Subianto, though he stated he did not know the agenda in advance. Nasbi speculated the meeting would address current geopolitical conditions, particularly turmoil in the Middle East and Indonesia's response, whilst denying any suggestions of a new cabinet position.

Bali Regional Parliament Urges Citizens Not to Fall for Provocative Narratives on Nyepi on Social Media

The Bali Regional Parliament (DPRD) has called on residents not to be swayed by provocative narratives circulating on social media regarding Nyepi coinciding with Eid al-Fitr takbiran celebrations. The parliament has issued security recommendations and emphasised that inter-religious harmony in Bali is well-established, whilst urging residents to verify the authenticity of accounts spreading such content and to respect each other's celebrations.

Global Semiconductor Giants Schedule Meeting to Address 2026 Supply Crisis

AMD CEO Lisa Su is scheduled to meet Samsung Electronics Chairman Jay Y. Lee in South Korea on 18 March to discuss securing high-bandwidth memory (HBM) supplies, a critical component for artificial intelligence chip manufacturing. The meeting reflects growing global demand for memory chips including HBM, DRAM, and NAND, driven by major technology firms racing to build data centres and develop AI systems.

Former Presidential Communications Chief Hasan Nasbi Summoned Unexpectedly to Presidential Palace by Prabowo

Hasan Nasbi, the former head of the Presidential Communications Office, was called to the Presidential Palace in Jakarta by President Prabowo Subianto on Thursday, 12 March 2026, though neither he nor observers yet know the purpose of the meeting. Nasbi stated he remains uncertain about the agenda and the capacity in which he was summoned, whilst also denying any prior discussion regarding a Cabinet reshuffle.

BPKH Assets Surge to 238.9 Trillion Rupiah

The Indonesian Hajj Fund Management Agency (BPKH) reported total assets reaching 238.99 trillion rupiah at the end of 2025, up from 221.05 trillion rupiah in 2024, demonstrating strong and sustainable management of national hajj funds amid global economic dynamics. The growth was driven by enhanced investment portfolio performance and placement of pilgrim funds across secure and productive Sharia-compliant instruments, with total investment assets rising to 169.31 trillion rupiah. The agency also recorded net benefit income of 11.48 trillion rupiah during 2025, providing crucial support for the sustainability of hajj pilgrimage financing for Indonesian pilgrims.

Ministry of Religious Affairs Prepares 6,859 Mosques to Serve Homebound Travellers for Eid 2026

The Indonesian Ministry of Religious Affairs is coordinating 6,859 mosques nationwide to provide services and facilities for travellers returning home for Eid al-Fitr in 2026 (1447 Hijriah). The mosques will offer 24-hour access, security, parking, healthcare facilities, water, sanitation, charging stations, rest areas, and food services from one week before to one week after Eid celebrations.

Indonesia readies 6,859 mosques as rest stops for Eid homecoming

Indonesia's Ministry of Religious Affairs has launched the "Masjid Ramah Pemudik" programme, enlisting 6,859 mosques along major homecoming routes as rest stops offering travellers facilities including prayer rooms, parking, clean water, charging stations, and first aid services. The initiative aims to expand mosques' role beyond prayer to provide community services during the annual Eid mass exodus, with location information available through the Pusaka Super App.

Russia and Turkey Offer Mediation, but Ceasefire Is Not What Iran Wants

Russia and Turkey have reportedly undertaken mediation efforts to end the conflict between Iran, the United States, and Israel, though Iran has stated it is not currently willing to agree to a ceasefire. Following a combined US-Israeli attack on Iran on 28 February that killed Supreme Leader Ayatollah Ali Khamenei, Iran has launched retaliatory strikes against Israeli territory and US military bases throughout the Middle East, with both sides initially citing Iran's nuclear programme as justification before it became apparent that a regime change in Iran was the actual objective.

Nadiem Makarim Testifies as Crown Witness in Chromebook Corruption Trial

Former Education Minister Nadiem Makarim testified as a crown witness in a corruption trial related to Chromebook procurement, denying allegations of conspiracy in the procurement of Chromebooks and Chrome Device Management systems. Makarim clarified that his policy focus was on digital transformation of education through software development rather than hardware procurement, and stressed that purchasing decisions were made at the directorate-general level, not ministerial level.

United States Initiates Legal Process for New Tariffs; Indonesia Confirms Trade Agreement Commitment

The Indonesian government responded to the United States' initiation of administrative legal procedures concerning new tariff policies affecting several countries, with the announcement currently at the early notification stage of internal US legal processes. Indonesia emphasised that its trade relationship with the United States remains governed by the Agreement of Reciprocal Trade (ART) signed in February 2026, which is currently undergoing internal legal procedures in both nations for full implementation. The ART aims to provide reciprocal tariff treatment beneficial to both parties, replacing a previous reciprocal tariff policy that the US Supreme Court had ruled illegal.

PLN IP prepares 268 power generation projects totalling 30.2 GW to support energy transition

PT PLN Indonesia Power (PLN IP) has announced plans for 268 power generation projects with a combined capacity of 30.2 GW as part of its commitment to national energy transition and security. The projects, developed under the 2025-2034 Electricity Supply Business Plan (RUPTL), emphasise renewable energy sources and decarbonisation of existing facilities, with the aim of achieving Indonesia's net zero emissions target by 2060.

9 Toll Roads Offering 30 Per Cent Discount During Eid 2026 Holiday

PT Jasa Marga has announced a 30 per cent toll tariff discount across nine strategic toll roads during the Eid 2026 holiday period, with the policy aimed at encouraging early travel and reducing congestion during peak periods. The discount applies to vehicles undertaking continuous long-distance journeys across all vehicle classes and will be in effect for four days on toll roads managed by the Jasa Marga Group. The government is supporting this initiative as part of a broader Rp12.83 trillion economic stimulus package for the first quarter of 2026 that includes transport subsidies and social assistance.

Tips for Travelling Home by Electric Car: Avoid Running Out of Battery on the Road

Using electric vehicles for the Eid holiday exodus is becoming increasingly viable as the Indonesian government continues to expand public electric vehicle charging stations (SPKLU) across major routes. Prospective electric car users planning long-distance journeys should undertake thorough preparations, including vehicle checks, route planning, and identifying charging points along their intended route.

ITS targets intake of 7,160 new students for SNPMB 2026

Institut Teknologi Sepuluh Nopember (ITS) in Surabaya aims to admit 7,160 new undergraduate and vocational programme students through the 2026 National Student Selection mechanism (SNPMB) via three main pathways: achievement-based selection (SNBP), test-based selection (SNBT), and independent selection. The university has also expanded access to higher education through various scholarship schemes including the Garuda Scholarship for joint and double degree programmes and multiple postgraduate funding options, in line with SDG Goal 4 on quality education.

Number of Indonesia's Super-Wealthy Taxpayers Paying 35% Tax Rate Continues to Grow

The Directorate General of Taxes (DJP) has recorded an increase of approximately 5.1% in individual taxpayers paying the highest personal income tax rate of 35% in 2025, applying to those earning over IDR 5 billion annually. According to DJP Director General Bimo Wijayanto, the growth reflects intensified tax supervision and improved taxpayer services for this top-tier income bracket. The 35% rate was introduced under the 2021 Tax Harmonisation Law, which restructured Indonesia's income tax brackets into five tiers.

Puan: Domestic Workers Protection Bill Provides Safety for Domestic Helpers to Work Comfortably

The Indonesian House of Representatives officially approved the Domestic Workers Protection Bill (PPRT) as a House initiative, with all eight parliamentary factions supporting the legislation. House Speaker Puan Maharani emphasised the bill aims to provide domestic helpers (ART) with protection and comfortable working conditions whilst maintaining family values and cooperation between employers and workers.

No Longer a Student, Not Yet a Doctor: The Overlooked Reality of Medical Co-Assistant Life

Medical co-assistants (koas) occupy a unique liminal space in Indonesia's healthcare education system, serving as advanced medical students who provide practical patient care under supervision whilst completing their professional education. The government has introduced new regulations in 2026, including mandatory digital logbook systems and stipend requirements for co-assistants, particularly those working in high-risk units or remote assignments. Despite their clinical responsibilities, co-assistants remain students subject to tuition fees and cannot independently treat patients without supervision from licensed physicians.

KB Bank Extraordinary Shareholders' Meeting Appoints New Management to Accelerate Transformation

PT Bank KB Indonesia Tbk held an extraordinary shareholders' meeting on 12 March 2026 to approve strategic changes in its Board of Commissioners and Board of Directors. The reshuffle, aimed at strengthening governance and accelerating business transformation, saw Tae Doo Kwon appointed as Vice-Chairman of the Board with extensive global banking experience from KB Kookmin Bank, whilst Ju Hwan Yi and Yungki Prabowo were appointed as new directors to strengthen risk management, digital transformation, and operational capabilities respectively.

Indonesia Explores Sukuk and Islamic Social Funds for Solar Energy

Indonesia's National Committee for Sharia Economics and Finance (KNEKS) is advancing innovative Islamic financing mechanisms—including green sukuk, cash waqf-linked sukuk, and zakat funds—to finance the nation's 100 GW solar energy programme. With an estimated national zakat potential of IDR 327 trillion and waqf assets of IDR 180 trillion, these sharia-compliant instruments aim to reduce dependence on conventional financing, mobilise capital from ESG-focused investors, and support Indonesia's net-zero emissions targets.

Bird's Eye Chilli Prices Surge to Rp 95,000 as Surabaya Market Traders Lament Thin Crowds During Ramadhan

Chilli prices in Surabaya's markets have become volatile during Ramadhan 2026, with bird's eye chillies reaching as high as Rp 95,000 per kilogram, whilst larger and curly varieties remain stable at around Rp 30,000. Market traders report declining foot traffic and significantly reduced daily sales volumes of between 5-6 quintals compared to previous years, citing empty markets as a major concern beyond price fluctuations.

Indonesia promotes "One Hour with Family" initiative to reduce children's gadget use

Indonesia's Deputy for Family Quality Improvement has launched the "One Hour with Family" movement to encourage parents to reduce their children's screen time and prioritise direct family interaction, citing data showing 42.25 per cent of young children access mobile phones and the internet. The initiative addresses growing concerns about excessive digital device use among Generation Z and Alpha, including risks such as limited parental supervision of internet access and Indonesia's ranking as the world's third highest nation for online sexual violence content involving minors.

One Year of Danantara Strengthening State Assets, Prabowo Reminds of Good Governance

President Prabowo Subianto has emphasised the importance of integrity and disciplined governance in managing state assets at a one-year reflection event for Indonesia's Danantara investment management institute. The institution, now comparable to global sovereign wealth funds, has demonstrated significant performance improvements under professional management, though Prabowo stressed that sustained strengthening of governance and asset management is essential to maximise benefits for the Indonesian people. As part of its anniversary, Danantara coordinated a social programme distributing 88,000 school supply packages to children across Indonesia through state-owned enterprises.

Head of Traffic Police Invites Media to Oversee Operation Ketupat 2026: Safe Journey Home, Happy Family

The Head of Indonesia's National Police Traffic Corps (Kakorlantas) has called on media outlets to partner with authorities in overseeing Operation Ketupat 2026, a nationwide campaign to ensure safe travel during the Lebaran exodus. The operation will deploy digital technology to monitor traffic conditions and implement traffic management strategies, with the government emphasising its commitment to public safety through the tagline "Safe Journey Home, Happy Family." Media will play a crucial role in disseminating real-time traffic information and reinforcing safety messages to travellers.

Construction Worker in Gianyar Faces 12-Year Prison Sentence for Child Rape

A 42-year-old construction worker named Budi Hermanto has been charged with 12 years imprisonment for the rape of a 15-year-old girl at a hotel construction site in Gianyar, Bali. The prosecution alleges that Budi used force during the assault on 10 October 2025, causing the victim severe psychological trauma and depression. The victim's parents reported the incident to police after learning of the crime.

Rupiah Closes Weaker, US Dollar Rises to Rp16,885

The rupiah closed weaker against the US dollar on Thursday (12 March 2026), depreciating 0.12% to Rp16,885/USD, as the dollar strengthened in global markets. External factors, particularly the rising US Dollar Index (DXY) at 99.420 and Middle East tensions affecting oil prices, continue to pressure emerging market currencies including the rupiah, with investors seeking the dollar as a safe-haven asset.

Jasa Marga Targets Toll Road Repairs Completion by 14 March 2026

PT Jasa Marga has accelerated its toll road preservation programme to complete all pavement repairs by 14 March 2026, ahead of the Lebaran holiday exodus. The repairs are necessary due to damage caused by heavy rainfall and high traffic loads, including overweight vehicles, and are aimed at ensuring safe and comfortable travel conditions during peak mobility periods.

East Jakarta Administration Ready to Secure Takbiran Celebrations and 2026 Eid Holiday Travel

East Jakarta City Government has declared its readiness to secure the takbiran celebrations for Eid al-Fitr 1447 Hijriah and manage the 2026 holiday travel surge, with preparations coordinated through a leadership meeting involving local government, security forces, and health personnel. The administration has established 27 integrated command posts across East Jakarta as part of Operation Pekat Jaya 2026 to prevent security disturbances and maintain public order, whilst calling on residents to actively support community safety initiatives. Authorities emphasise that inter-agency coordination and community participation are essential for ensuring a smooth, safe, and orderly celebration.

Central Lombok Completes 100 Per Cent Village Fund Disbursement

Central Lombok district in West Nusa Tenggara has completed 100 per cent disbursement of village allocation funds (ADD) for 2026, totalling Rp123 billion across 142 villages. Village officials completed their budgets (APBDes) as a prerequisite for fund release. However, general village funds (DD) disbursements are lagging at 36 per cent due to government efficiency measures, with allocations reduced from Rp1-2 billion to Rp300 million per village.

Psychologist Reveals Impact of Social Media on Teenagers, from Anxiety to Cyberbullying

Clinical psychologist Catherine Steiner-Adair warns that intensive use of social media and instant messaging is altering how teenagers communicate and undermining the development of crucial social skills. Research from the Royal Society for Public Health links platforms such as Snapchat, Instagram, Facebook and Twitter to increased depression, anxiety, loneliness and negative body image amongst young people aged 14 to 24, whilst pressure to appear perfect online erodes confidence through constant social comparison.

Forestry Minister: No applications yet for forest land for temporary and permanent flood shelters

Indonesia's Forestry Minister Raja Juli Antoni states that as of last week, no regional governments have applied to use forest land for temporary (huntara) or permanent (huntap) housing for flood survivors in Sumatra. The ministry says that state-owned assets held by local governments remain sufficient, and alternative sites including expired land use rights managed by the Agrarian Ministry are being used instead.

Alamtri Resources Indonesia (ADRO) Plans Share Buyback, Allocates IDR 4 Trillion

PT Alamtri Resources Indonesia Tbk (ADRO) has announced plans to repurchase its own shares worth up to IDR 4 trillion, representing no more than 10% of the company's issued capital. The extraordinary general meeting of shareholders is scheduled for 17 April 2026, with the buyback programme set to commence on 20 April 2026 and run for up to 12 months.

Fuel stocks secure for up to 23 days as consumption projected to rise 12 percent

The Indonesian government has projected that petrol consumption will increase by approximately 12 percent during the Eid al-Fitr holiday period in 2026, whilst diesel demand is expected to decline by 14.5 percent. The government has established a national operations centre to coordinate energy supply and has deployed substantial infrastructure including 125 fuel terminals and 7,885 petrol stations, with fuel reserves maintained at secure levels of 17 to 23 days.

Canva Releases Magic Layers Feature, Completed Images Can Be "Deconstructed" and Edited Again

Canva has launched Magic Layers, an artificial intelligence-powered feature that converts flat images into editable designs by decomposing them into separate layers. The technology analyses visual structure to distinguish foreground objects, backgrounds, and editable text, allowing users to modify previously rendered images without locating original design files or using external tools like Adobe Photoshop.

Tokocrypto welcomes adaptive regulation under new OJK IAKD leadership

Tokocrypto has expressed optimism regarding the appointment of Adi Budiarso as the new head of the Financial Technology Innovation Supervision Division (IAKD) at Indonesia's Financial Services Authority (OJK), hoping for more adaptive regulatory frameworks for the crypto asset ecosystem. The exchange emphasises that proper regulation combined with industry collaboration will be crucial for sustainable growth of Indonesia's digital economy sector whilst maintaining public protection.

Pratikno: Primary and Secondary School Students Not Permitted to Use AI Like ChatGPT

Indonesia's Coordinating Minister for Human Development and Culture, Pratikno, announced that the government will restrict primary and secondary school students from using instant AI tools such as ChatGPT. Seven ministries signed a joint decree establishing guidelines for the use of digital technology and artificial intelligence in education, aimed at preventing cognitive deterioration and mental health issues among minors whilst still allowing educational technology applications designed specifically for learning purposes.