Indonesian Political, Business & Finance News

Archive: 12 March 2026

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One Year of Danantara: Strengthening the Foundation of the National Economy

Danantara Indonesia marked its first anniversary with a reflection gathering attended by President Prabowo Subianto and cabinet ministers, emphasising the importance of integrity, governance discipline, and long-term orientation in managing state assets. The institution, positioned as an Indonesian sovereign wealth fund, distributed 88,000 school supply packages nationwide through various state-owned enterprises (SOEs), including 2,500 packages distributed by Telkom Group across North Kalimantan, as part of its commitment to education and national economic development.

Iran's President Outlines Conditions to End War with US-Israel

Iran's President Masoud Pezeshkian has stated that ending the conflict with the United States and Israel requires recognition of Iran's legitimate rights, payment of compensation, and strong international guarantees against future aggression. The statement came as Iranian armed forces warned of a massive retaliatory strike if the US attacks Iranian ports, escalating tensions following earlier coordinated Israeli-US strikes that killed Supreme Leader Ali Khamenei.

Indonesia accelerates relocation of Sumatran disaster evacuees from tents ahead of Eid al-Fitr

The Indonesian government has rapidly reduced the number of Sumatran disaster evacuees in temporary tent shelters from 12,000 to 1,600, with a target to complete temporary housing within 10 days ahead of Eid al-Fitr. The Ministry of Health is providing comprehensive assistance including temporary accommodation, financial aid for private rentals, and allocated budgets ranging from Rp15–60 million for house renovation depending on damage severity, alongside daily food allowances and economic support for three months.

Parliament reveals several countries that failed to relocate their capitals during Constitutional Court hearing

During a Constitutional Court hearing on the relocation of Indonesia's capital from Jakarta to Nusantara, a Parliament representative cited examples of countries including Tanzania, Myanmar, and Nigeria that failed in similar endeavours due to rushing the process. The hearing focused on ambiguous constitutional language regarding the timing of the capital transfer and Parliament's rationale for deliberately avoiding a fixed deadline to allow government flexibility in ensuring adequate infrastructure, financing, and institutional readiness before implementation.

Gunung Gede Pangrango National Park Closes Natural Tourism Activities During Lebaran

Gunung Gede Pangrango National Park will temporarily close all natural tourism and climbing activities on 20 March 2026 during Eid al-Fitr, with operations resuming on 21 March. The closure, implemented through official circular notice, applies to all climbing gates including Cibodas, Gunung Putri (Cianjur), and Salabintana (Sukabumi) to prioritise ecosystem recovery and visitor safety amid extreme weather conditions. Violators will face administrative penalties including fivefold fines and a two-year climbing ban.

Energy Crisis Looms as Pakistan Cuts Salaries of Officials, Ministers and Parliament Members

Pakistan has implemented emergency austerity measures in response to escalating conflict between the United States and Israel against Iran, which threatens global oil supplies and destabilises the Middle East region. Prime Minister Shehbaz Sharif announced strict spending cuts including salary reductions for civil servants, ministers and parliamentarians, school closures, and restrictions on government spending, as Pakistan faces severe energy shortages due to its heavy dependence on fuel exports from the Persian Gulf states whose production has been disrupted by regional conflict.

Ammar Zoni and Others Charged with Nine Years' Imprisonment for Narcotics Distribution in Salemba Detention Centre

Six defendants, including actor Ammar Zoni (Muhammad Ammar Akbar), have been charged by prosecutors with narcotics distribution offences within Salemba Detention Centre (Rutan) in Jakarta. Ammar Zoni faces nine years' imprisonment, whilst his co-defendants face sentences ranging from six to eight years, with allegations involving the distribution of methamphetamine, cannabis, and ecstasy within the facility. The case stems from incidents that came to light in January 2025, with suspected drug trafficking dating back to 31 December 2024.

Between trees and tails: elephants and humans journey in conservation at Riau's Elephant Conservation Unit

The Elephant Conservation Unit (UKG) in Riau's plantation forest demonstrates an integrated approach to Sumatran elephant conservation, where nine mahouts care for seven elephants whilst monitoring surrounding habitat and conducting patrols to prevent human-wildlife conflict. The facility combines direct animal care—including nutrition, health monitoring, and breeding support—with broader landscape conservation through collaboration with BKSDA and Tesso Nilo National Park, maintaining green belt corridors essential as natural elephant habitat faces increasing pressure from land conversion.

Estimated 143.9 Million People Expected for Eid Travel, Transport Ministry Prepares Traffic Management

Indonesia's Transport Minister Dudy Purwagandha projects that approximately 143.91 million people (50.6 per cent of the population) will travel during the 2026 Eid holiday period, slightly down from 2025's estimate but noting that actual 2025 mobility exceeded 154 million passengers. The Transport Ministry is implementing comprehensive preparations including subsidised ticket fares, free mudik (homecoming) programmes, traffic engineering, digital monitoring systems with 7,159 CCTV cameras, and work-from-anywhere policies to manage the surge in demand across land, sea, air and ferry services.

Nine Areas of Jakarta Face Landslide Risk in March 2026

Jakarta's provincial government has issued an early warning for potential landslides across nine districts in the capital during March 2026, based on geological vulnerability mapping overlaid with rainfall forecasts from the national meteorological agency. The at-risk areas, concentrated in South and East Jakarta, are classified as medium-risk zones where landslides may occur if rainfall exceeds normal levels, particularly in slopes, river valleys, and areas with weak ground stability.

UN Security Council fails to adopt resolution calling for halt to military activity

The UN Security Council rejected a Russian-sponsored draft resolution on Wednesday that called for all parties to cease military activities and refrain from further escalation in the Middle East, with four votes in favour, two against, and nine abstentions. The Council subsequently adopted a separate resolution proposed by Bahrain on behalf of the Gulf Cooperation Council that condemned Iranian attacks and characterised them as violations of international law, though Iran's permanent representative objected to the measure as unjust and contradictory to UN principles.

Japek II Southern Toll Road Ready to Serve as Safety Valve for Return Homecoming Traffic

The Japek II Southern toll road, a 52-kilometre stretch connecting Jakarta's JORR 2 with Purbaleunyi toll near Sadang, Purwakarta, is being prepared as an alternative route to distribute traffic from Bandung to Jakarta during the Lebaran holiday period. With a maximum capacity of 2,000 vehicles per hour, the functional toll road aims to relieve congestion on the existing Japek route, which currently handles 5,000-5,500 vehicles per hour. PT Jasa Marga expects the project—valued at Rp 14.69 trillion—to be fully operational from 16 March 2026, though initial operations will be restricted to daytime hours (06:00-17:00 WIB) pending completion of safety equipment installation.

Telkom to Reduce Subsidiary Portfolio from 60 to 14 Entities

PT Telkom Indonesia (Persero) Tbk is undertaking a major restructuring programme to streamline its subsidiary portfolio, reducing the number of entities from approximately 60 to 14. The initiative, part of the company's medium-term transformation agenda towards TLKM 2030, involves divesting, merging, or closing around 50 subsidiary entities whilst strengthening focus on core business operations and improving asset management. This restructuring supports Telkom's strategic shift towards operating as a holding company with four primary growth drivers: B2C Business, B2B IT Services, Digital Infrastructure, and International Business.

Jasa Marga to Implement 30 Per Cent Toll Tariff Discount on 9 Toll Road Sections

PT Jasa Marga (Persero) Tbk will offer a 30 per cent toll tariff discount for four days across 9 toll road sections during the 2026 Eid holiday period. The discount applies to long-distance travellers using a single electronic payment card for entry and exit transactions, aimed at distributing traffic more evenly during peak migration periods.

New Criminal and Criminal Procedure Codes Enacted; Unpad Law Faculty Updates 2026 Academic Curriculum

Indonesia's government has enacted a new National Criminal Code (KUHP) and Criminal Procedure Code (KUHAP), prompting Padjadjaran University's Faculty of Law to update its academic curriculum for the 2026 academic year. The overhaul includes revised courses in foundational legal subjects and criminal law to equip graduates for the new criminal justice system, which incorporates modern crime provisions including cybercrime and emphasises restorative justice and human rights protections.

Religious Affairs Minister Proposes Upgrading 13 Institutes to University Status and 8 Higher Schools to Institute Status

Indonesia's Religious Affairs Minister Nasaruddin Umar has proposed institutional restructuring of State Religious Higher Education Institutions (PTKN), including elevating 13 institutes to university status and upgrading 8 higher schools to institute status, alongside the establishment of two new religious higher education institutions. The proposals aim to expand access, improve educational quality, and enhance the management and equitable distribution of religious education services across the country. The minister also outlined structural reforms within the Religious Affairs Ministry, including creating new directorates and reorganising existing units to better serve religious education and workforce development.

The Sorrow of Workers Who Never Get Eid Leave: Sorry, I Cannot Go Home Again

A minimarket worker named Erna has not been able to take Eid leave for seven years due to inadequate staffing at her workplace and store managers taking priority for holiday slots. The rotating leave system at her company, combined with staffing shortages, means she remains unable to visit her hometown in Cirebon during the important Islamic holiday, leaving her with feelings of guilt and sadness.

Church distributes 2,200 Eid parcels to underprivileged families in Tulungagung

The GBI ROCK congregation in Tulungagung, East Java has distributed 2,200 parcels containing staple goods and Eid delicacies to low-income families across 17 villages and hamlets. The initiative represents interfaith social responsibility, with the church extending support to underprivileged Muslim residents to help them celebrate Eid al-Fitr 2026.

Geopolitical Turbulence Triggers Energy Risks; National Energy Council Urges Acceleration of Electrification

The National Energy Council is pushing for rapid electrification through increased adoption of electric stoves and electric vehicles to strengthen Indonesia's energy security amid growing geopolitical uncertainty. The nation's high dependence on imported fuel oil and liquefied petroleum gas creates vulnerability to global market volatility and supply disruptions, which electrification and diversification into domestic renewable energy sources can mitigate. Despite forecast increases in electricity consumption from electrification, the council asserts that Indonesia's electrical grid capacity remains sufficient to support the transition.

Pertamina Chief Updates on Tanker Vessel Conditions in Gulf Region

Pertamina's Chief Executive Simon Aloysius Mantiri disclosed that two of the company's four cargo vessels in the Middle Eastern gulf have resumed operations, with the Paragon and Rinjani now serving non-captive markets bound for Kenya and India respectively. Two remaining vessels, the Pertamina Pride and Gamsunuro, remain in the Strait of Hormuz, with the company prioritising crew safety whilst coordinating with the government and foreign ministry to ensure safe passage. To mitigate fuel supply risks and reduce dependence on Middle Eastern oil, Pertamina is diversifying crude sources from Africa and the Americas.

PGI: Corruption eradication must be completed to face global crisis

The head of the Communion of Churches in Indonesia (PGI), Reverend Jacklevyn Frits Manuputty, has called for comprehensive domestic corruption eradication as a prerequisite for Indonesia to compete globally, particularly amid the geopolitical tensions involving the United States, Israel, and Iran. Manuputty emphasised that Indonesia must build strong internal foundations and maintain collective pride whilst critically engaging with government policies, particularly regarding the implementation of National Strategic Projects and the protection of indigenous land rights and local community interests.

Ministry of Religious Affairs Prepares 6,859 Migrant-Friendly Mosques with Information Available via Pusaka Application

The Indonesian Ministry of Religious Affairs (Kemenag) has prepared 6,859 migrant-friendly mosques along major migration routes nationwide to provide services during the 2026 Lebaran holiday exodus. The initiative aims to revitalise mosques' role beyond traditional prayer functions, offering facilities such as round-the-clock access, parking, clean toilets, rest areas, health services, device charging stations, and refreshment services to facilitate safe and comfortable travel for homebound migrants.

Alternative Mudik Route Repairs in Cianjur Targeted for Completion by H-7 Eid

The Cianjur District Public Works and Spatial Planning Office in West Java is repairing alternative mudik routes ahead of Eid al-Fitr 1447 Hijriah, targeting completion by 13 March 2026 (H-7). Currently, road maintenance efforts are underway at multiple points, with particular challenges at Bundaran Tugu Lampu Gentur, which will undergo concrete resurfacing to withstand extreme weather conditions and ensure safe passage for returning travellers.

West Jakarta One-Stop Service Centre Declares Swarga Abadi Crematorium Licensing Free of Administrative Problems

The head of West Jakarta's One-Stop Service Centre for Investment (PTSP) has affirmed that the licensing process for Swarga Abadi funeral home and crematorium in Kalideres is proceeding in accordance with legal procedures and contains no administrative violations. The statement was made in response to public protests regarding the project, with the official emphasising that all licensing stages conducted by the Swarga Abadi Foundation have complied with applicable regulations and that the recently-issued technical standards confirmation letter (SPPST) provides the green light for building permit issuance under Indonesia's new 2021 and 2025 government regulations.

United States to Release 172 Million Barrels of Oil from Strategic Reserve

The United States announced on Wednesday 11 March that it will release 172 million barrels of oil from its Strategic Petroleum Reserve, as part of a coordinated international effort by 32 member nations of the International Energy Agency to release a combined 400 million barrels in response to President Trump's energy price reduction directive. The US Department of Energy will conduct the release over approximately 120 days, with plans to replenish the reserve with around 200 million barrels within the following year.

Why Thailand Is Called the Land of Rice: The Secret Revealed

Thailand has earned the epithet "Land of Rice" due to its massive rice production, geographical advantages, and cultivation of premium jasmine rice (Thai Hom Mali Rice) that dominates international markets. Beyond economics, rice holds deep cultural significance in Thai society and remains critical to Indonesia's rice imports, with Thailand supplying approximately 30 per cent of Indonesia's total rice imports in 2024.

Bali Toll Road Closes for 32 Hours During Nyepi

PT Jasamarga Bali Tol will close the Bali Mandara toll road for 32 hours from Wednesday 18 March at 23:00 to Friday 20 March at 07:00 local time in observance of Nyepi, the Balinese Hindu new year. The toll operator anticipates a surge in traffic volume to around 27,000 vehicles per day on 17 March before the closure, and has deployed 117 CCTV cameras, wind sensors, mobile toll readers, and service posts to manage the holiday period and maintain emergency access for ambulances and medical vehicles.

Danantara Marks First Anniversary with Performance Achievements

Danantara Indonesia, the state investment management agency, has completed its first year of operations, with CEO Rosan Roeslani announcing the establishment of a strong institutional foundation through 27 governance policies and strategic initiatives. The organisation has advanced its portfolio management mandate through Danantara Asset Management with USD 26 billion in potential downstream industrial investments, whilst Danantara Investment Management has secured 11 global strategic partnerships with commitments reaching approximately IDR 346 trillion to channel foreign investment into Indonesia's priority sectors.

Before-and-After of Kampar Bridge in Riau Set for Official Opening by Police Chief

A timber bridge in Gobah Village, Kampar Regency, Riau Province, has been reconstructed into a robust concrete structure measuring 27.5 metres long and 4 metres wide, capable of supporting four-wheeled vehicles. Police Regional Chief Irjen Pol Herry Heryawan has completed final inspections, with the "Jembatan Merah Putih Presisi" (Red-and-White Precision Bridge) scheduled for official inauguration by the National Police Chief (Kapolri) Jenderal Listyo Sigit Prabowo the following week. The project demonstrates synergy between government agencies and police in addressing accessibility challenges in remote areas and boosting local economic prospects.

Interior Minister and Six Other Ministers Sign Joint Decree on AI Utilisation in Education

Seven Indonesian cabinet ministers, led by the Interior Minister, signed a joint decree establishing guidelines for the responsible use of digital technology and artificial intelligence across formal, non-formal, and informal education sectors. The decree aims to harness AI's benefits whilst mitigating risks to children, addressing concerns such as uncontrolled technology use, digital bullying, and fear of missing out.

Ascott Bandung Area Holds "Ascott Takes Part Ramadan 2026" to Mark 30 Years of The Ascott Limited Indonesia

The Ascott Bandung Area, comprising six hotel properties, launched a comprehensive social programme titled "Ascott Takes Part Ramadan 2026" to commemorate 30 years of The Ascott Limited Indonesia's operations whilst demonstrating corporate social responsibility during Ramadan. Over three days, the initiative engaged with four community locations including elderly care homes, special education schools, orphanages, and local mosques, organising activities such as community gatherings, fashion shows, creative workshops, and environmental cleanliness drives, alongside meal distributions for breaking the fast.

Must Annual Individual Tax Returns Be Nil?

The Directorate General of Taxes (DJP) has clarified that annual personal tax returns do not always need to show a nil balance, contrary to widespread public misconception. Many taxpayers may face shortfall notices despite having their income tax withheld monthly by employers, as returns must account for all income sources including bonuses, side work, and other earnings throughout the year. Common reasons for shortfalls include job changes during the fiscal year and discrepancies between progressive tax rates applied to combined annual income versus monthly withholding rates.

Following Restorative Justice Request, Rismon Meets Jokowi in Solo Today

Rismon Hasiholan Sianipar is scheduled to meet with former President Joko Widodo at his residence in Solo, Central Java, following his submission of a restorative justice petition in the fake diploma allegations case against Jokowi. The Jakarta Metro Police's Criminal Investigation Director confirmed that investigators are processing Rismon's restorative justice request as part of their facilitation efforts.

Tanker Ship Attack in Persian Gulf: Iraq Halts Oil Port Operations

Iraq has suspended all operations at its oil terminals following attacks on two tanker ships in the Arabian Gulf, raising tensions in the Strait of Hormuz amid escalating Iran-related conflicts. At least one Indian crew member was killed in the incident, and 38 crew members were rescued after a tanker caught fire, allegedly struck by an Iranian naval drone. The State Organization for Marketing of Oil warns the attacks pose serious risks to Iraq's energy security and economic stability, given the nation's heavy dependence on oil exports.

Copyright Bill to Extend Exclusive Rights Protection to Journalistic Works

Indonesia's parliament legislative body has announced that journalistic works will be included as copyright-protected creations under amendments to the Copyright Law. Under the proposed legislation, news companies will hold exclusive rights—both moral and economic—over journalistic content, requiring permission and royalty payments from third parties wishing to republish or adapt such works. The amendment addresses a gap in current Indonesian press law and responds to longstanding demands from journalists for formal copyright recognition.

Ministry of Communication and Digital Affairs Releases Eid 2026 Homecoming Guidebook: Contents and Download Link

Indonesia's Ministry of Communication and Digital Affairs has released "Mudikpedia: Lebaran 2026", a comprehensive guidebook providing essential information for citizens travelling during the 2026 Eid homecoming period. The guidebook covers holiday schedules, traffic management plans, safety tips, and public transport information, whilst police forecasts indicate two peak travel periods (14-15 March and 18-19 March) and two return peaks (24-25 March and 28-29 March).

Surge in Street Money Exchange Businesses Ahead of Eid, Operators Rake in Substantial Profits

Ahead of Eid al-Fitr, a surge of informal street vendors offering currency exchange services has emerged across Jakarta, capitalising on high demand for small denomination banknotes used for cash gifts. Operating with a 15 per cent commission fee funded by backers who provide capital of tens of millions of rupiah, individual vendors report daily turnover ranging from 15 to 50 million rupiah, with profits peaking two days before Eid.

Surge in Indonesian Citizens Becoming Street Money Changers Ahead of Ramadan, Returning Home with Substantial Earnings

Ahead of Eid al-Fitr, a surge of informal street money changers known as "inang-inang" have emerged in Jakarta's old town and markets to exchange small denomination notes, a seasonal phenomenon driven by high demand for coin and small bills to distribute as Eid gifts. Operators like Yeni and Fani exchange between 5-10 million and 15 million rupiah daily respectively, earning profits of tens of millions by charging a 15% service fee, with capital supplied by money lenders and the highest earnings typically occurring two days before Eid.

New OJK Deputy Chairman Hernawan Bekti Affirms Solid New Leadership

The Financial Services Authority (OJK) has officially appointed five new board members, including Hernawan Bekti Sasongko as Deputy Chairman, following parliamentary approval on 12 March 2026. Bekti has pledged to streamline internal business processes, strengthen human resources, and implement a collective collegial leadership system across the nine-member board.

Rampai Nusantara Calls on Society to Strengthen Solidarity Amid Global Dynamics

Community organisation Rampai Nusantara has called on Indonesians to strengthen national unity and solidarity in response to increasingly complex global challenges. The group's leader Mardiansyah Semar stressed that collective strength and cohesion are essential for facing future difficulties, whilst expressing confidence in the government's ability to maintain economic stability through appropriate policies.

Government Reviews Subsidised Fuel Allocation, Promotes B40 and B50 to Reduce Fossil Energy Dependence

Indonesia's Ministry of Energy and Mineral Resources is reviewing the allocation of subsidised fuel and accelerating the implementation of higher biodiesel blends (B40 to B50) whilst developing ethanol-based fuels to reduce fossil fuel dependence and strengthen national energy security. The government plans to make biodiesel and ethanol fuels mandatory based on domestic feedstock availability, with plans for E20 implementation by 2028, amid volatile global crude oil prices.

Outstanding KUR Affected by Sumatran Disaster Reaches Rp11.23 Trillion

Indonesia's Ministry of Micro, Small and Medium Enterprises has recorded Rp11.23 trillion in outstanding People's Business Credit (KUR) among disaster-affected UMKM entrepreneurs across Aceh, North Sumatera, and West Sumatera, affecting 193,708 borrowers. The government is providing special relief measures across three periods to support economic recovery and expand market access for affected businesses.

Yogyakarta's Economy Grows 5.49 Per Cent, OJK Continues Financial Literacy Campaign

Yogyakarta's Special Region (DIY) economy grew by 5.49 per cent in 2025, driven by the processing industry, accommodation and food services, construction, forestry, and agriculture. The Financial Services Authority (OJK) has conducted 17 financial education programmes reaching 2,054 participants, whilst also tackling growing financial fraud through the Indonesian Anti-Scam Centre (IASC).

Indonesia assures Ramadan food stocks stable despite Middle East war

Indonesian authorities have confirmed that food stocks remain sufficient and affordable throughout Ramadan and Eid, with certain commodities experiencing controlled price increases that remain within government benchmarks. The government has stated that the Middle East conflict poses no threat to domestic food availability as Indonesia does not import food from the region, and is pursuing expanded domestic production initiatives including large-scale aquaculture and protein development projects across Java and 500 districts.

Minister of Religion Reveals Directorate General of Islamic Boarding Schools Awaiting Prabowo's Signature

Indonesia's Minister of Religion Nasaruddin Umar announced that the establishment of a Directorate General of Islamic Boarding Schools (Pesantren) is pending presidential regulation approval and awaits President Prabowo Subianto's signature. The new directorate, which replaces the former Hajj and Umrah directorate that has been transferred to a dedicated ministry, aims to strengthen the management of Indonesia's 341,565 pesantren institutions serving over 12.6 million students. The restructuring aligns with the 2019 Law on Islamic Boarding Schools and is intended to enhance educational quality and human resource development.

Defence Minister Says Indonesian Military Has Officers Qualified for ISF Deputy Commander Role

Defence Minister Sjafrie Sjamsoeddin has stated that the Indonesian Armed Forces (TNI) possess high-ranking officers of sufficient calibre to serve as Deputy Commander of the International Stabilisation Force (ISF). The appointment would strengthen Indonesia's international standing and provide assurance that ISF operations in Gaza serve civilian interests and Palestinian peace-building objectives, according to security analyst Khairul Fahmi.

Two Oil Tankers Attacked Off Iraq, One Crew Member Killed

Two oil tankers have been attacked near Iraq, resulting in the death of at least one crew member and leaving 38 others rescued with ongoing search operations for missing persons. The incident underscores escalating tensions in the Middle East and threatens critical maritime energy supply routes, with the Strait of Hormuz—through which a fifth of the world's oil passes—increasingly vulnerable to regional conflict. The attack follows US military operations against Iranian naval assets and heightened security concerns over potential Iranian targeting of oil facilities in Iraq.

The Calendar of Nyepi Celebrations 2026 in Bali: From Melasti to Catur Brata Penyepian

Nyepi 2026, celebrated on 19 March, marks the Hindu New Year in Bali and involves a series of traditional ceremonies including Melasti (purification rituals), Tawur Kesanga (cosmic harmonisation), and the Ogoh-Ogoh procession, culminating in a day of complete silence governed by the Catur Brata Penyepian (four abstinences). During this sacred day, all public activities across Bali cease as residents remain indoors for prayer, meditation, and introspection, creating a unique cultural experience for both locals and visitors.

Prabowo Meets Australian Deputy Prime Minister to Discuss Strategic Issues

President Prabowo Subianto met with Australian Deputy Prime Minister and Defence Minister Richard Marles on 11 March 2026 at his private residence in Jakarta to discuss important strategic issues and regional dynamics. The meeting, characterised as warm and cordial, reflected the strong personal relationship between the two leaders and reaffirmed Indonesia and Australia's commitment to strengthening their strategic partnership and regional stability.

Energy Subsidy and Compensation Spending Reaches Rp51 Trillion

Government spending on energy subsidies and compensation reached Rp51.5 trillion by 28 February 2026, representing 11.5 per cent of the annual budget allocation under the 2026 state budget. The spending comprises Rp7.4 trillion in direct subsidies and Rp44.1 trillion in compensation payments, with distribution of subsidised fuel, liquefied petroleum gas, and electricity all increasing in volume compared to 2025.