Indonesian Political, Business & Finance News

Archive: 12 March 2026

Showing 1,651-1,700 of 2,010 articles

Beware Kidney Inflammation in Young Adults; Indonesian Nephrology Association Recommends Regular Urine Screening

The chairperson of the Indonesian Nephrology Association has warned young people to be vigilant about kidney health, emphasising that glomerulonephritis often presents silently without early symptoms and can lead to permanent kidney failure. Early detection through routine urine examination is crucial, as physical indicators such as foamy or discoloured urine can signal dangerous levels of protein or blood leakage. Lifestyle factors including high-calorie foods, high-sodium processed foods, and sedentary behaviour are major contributors to kidney disease, which can be mitigated through regular health checks and healthier habits.

China warns of dangers of AI use in US strikes against Iran

China's Defence Ministry has warned against the unrestricted military use of artificial intelligence, citing US operations against Iran as a cautionary example. The US military has confirmed using advanced AI systems, including Palantir's Maven Smart System and Anthropic's Claude, to accelerate targeting and military operations, whilst China calls for UN-centred multilateral AI governance to prevent technology from destabilising international security.

Indonesia to Redirect Oil Imports to United States, But Shipping Times to Increase

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia announced plans to shift 25 per cent of the nation's oil imports from the Middle East to the United States, in response to potential disruptions such as Strait of Hormuz closures. Whilst shipping from the US takes approximately 40 days compared to 2-3 weeks from the Middle East, the government intends to establish long-term supply contracts and logistical arrangements to mitigate delays, with a similar strategy already proving successful for liquefied petroleum gas imports.

Malaysia Cancels Open House Events and Restricts Ministerial Travel in Anticipation of Global Economic Turmoil

Malaysia has implemented austerity measures, including the cancellation of Eid open house events by government ministries and linked companies, and restrictions on foreign travel by cabinet members, in response to geopolitical tensions in West Asia affecting global energy supply chains and oil prices. Prime Minister Anwar Ibrahim warned the public to exercise financial prudence whilst the government maintains fuel price controls and closely monitors global developments to protect economic stability and public welfare.

Prabowo warns SOEs against falsified financial reports: "Do not trifle with me"

President Prabowo Subianto has warned all state-owned enterprises (SOEs) and Danantara's management not to manipulate financial reports, emphasising that the conglomerate holds significant responsibility for managing state assets. The President expressed satisfaction with Danantara's performance over the past year, noting a 300 per cent increase in return on assets compared to previous years, though he has set more ambitious targets of 10-15 per cent ROA and outlined Indonesia's plans for food self-sufficiency and renewable energy expansion.

South Jakarta installs wooden stakes to address landslide on Tebet riverbank

South Jakarta's Water Resources Agency has installed wooden stakes (dolken) as a temporary measure to prevent further landslides affecting six rental properties on the Ciliwung riverbank in Tebet following a collapse on 6 March. The properties, which had been abandoned by tenants and owners due to the precarious riverbank location, suffered structural damage when heavy rain increased the river's water level, undermining building foundations. The landslide response is part of a broader government effort to manage flood risk and landslides, with planned land acquisition along the Ciliwung riverbank affecting 396 properties in the area.

What Are the Impacts of the Iran versus United States-Israel War on Indonesia?

The geopolitical conflict in the Middle East between Iran, the United States, and Israel poses significant economic risks to Indonesia, primarily through disruptions to the Strait of Hormuz and oil supply chains. The conflict threatens to raise global crude oil prices, which could drive up Indonesia's fuel costs, increase inflation, pressure government budgets, weaken the rupiah, and elevate transportation and logistics expenses across the economy.

Government rolls out measles immunisation drive across 102 districts ahead of Eid holiday

The Indonesian Ministry of Health is accelerating measles-rubella (MR) immunisation programmes across 102 districts in March 2026, targeting children aged 9-59 months ahead of the Eid holiday travel season. As of week 8 of 2026, the country has recorded 10,453 suspected measles cases with 8,372 confirmed cases and six deaths, spread across 45 outbreak events in 29 districts across 11 provinces. The government aims to prevent widespread transmission that could be exacerbated by increased population mobility and gatherings during the Eid period.

Hyundai provides free replacement vehicles for customers during repairs

Hyundai Indonesia has introduced a courtesy car programme offering customers free replacement vehicles when their cars require repairs lasting more than one day at authorised service centres. The service is designed to ensure customers maintain mobility whilst their vehicles undergo maintenance, particularly for time-intensive repairs such as body work or component replacements.

Brimob Metro Police Halt Illegal Street Racing in East Jakarta, Three Youth Detained

The Mobile Brigade (Brimob) of Metro Jaya Police disbanded an illegal street racing operation in Duren Sawit, East Jakarta, in the early hours, detaining three youth and seizing three motorcycles. Police have intensified patrols during high-risk hours, particularly around sahur (pre-dawn meal) and Subuh (dawn prayer) times, as part of a broader effort to combat the recurring public safety threat posed by street racing activities.

Foreign Interest in Indonesian Government Securities Rising, Evidence Shows

The Indonesian Ministry of Finance has reported sustained and growing foreign investor interest in State Securities (SBN), with bid-to-cover ratios of 2.4 times for State Bonds (SUN) and 2.8 times for Islamic State Bonds (SBSN), demonstrating confidence in Indonesia's economic fundamentals despite global financial uncertainty. The government also successfully issued dual-currency bonds in February 2026 worth 9.25 billion Chinese offshore yuan and 2.7 billion euro, reflecting diversified international market access.

Transjabodetabek Blok M–Soekarno-Hatta Airport Service Begins Operations with Fare of Rp 3,500 for Three Months

Jakarta Governor Pramono Anung and Tangerang Mayor Sachrudin officially launched the Transjabodetabek SH2 bus service connecting Blok M to Soekarno-Hatta Airport, a 65-kilometre route with an estimated travel time of 121 minutes. The service operates with 14 orange buses at a subsidised fare of Rp 3,500 for the first three months, expected to serve 1,900–2,000 passengers daily, with plans to increase fares to Rp 10,000–Rp 15,000 after the initial evaluation period.

Parliamentary Leader Urges Government to Conduct Assessment for Hajj Pilgrims' Safety

Deputy Speaker of the House of Representatives Saan Mustopa has called on the government to ensure the security and safety of prospective hajj pilgrims amid Middle Eastern conflicts. He emphasised that the government must conduct thorough assessments and contingency planning across all stages of the hajj process—from departure and return to the pilgrimage itself in Saudi Arabia. Commission VIII of Parliament and the Ministry of Hajj and Umrah are now discussing security measures whilst monitoring developments in the Iran-US-Israel tensions to inform decisions on this year's hajj pilgrimage.

Spain Withdraws Ambassador from Israel over Escalating Middle East Conflict

Spain has permanently recalled its ambassador from Israel due to deteriorating diplomatic relations stemming from Israel's military operations in Gaza and broader regional tensions in the Middle East. Prime Minister Pedro Sanchez reaffirmed Spain's consistent opposition to armed conflict and rejected US requests to use Spanish military bases for operations against Iran, maintaining the government's principled stance against warfare across Gaza, Ukraine, and the wider region.

Central Java Police Dismantle Two Formalin Noodle Factories with Daily Production Capacity of 1.5 Tonnes

Central Java Police have dismantled two illegal noodle factories producing formaldehyde-tainted noodles with a combined daily output of 1.5 tonnes in Boyolali Regency. A suspect identified as WH, 38, has been named in the case following raids on 10 March 2026, with evidence suggesting operations dating back to 2019 and daily turnover of approximately 12 million rupiah. The suspect faces charges under Article 504 of Indonesia's new Criminal Code with penalties of up to five years imprisonment or significant fines.

Rupiah Weakens Following Scrutiny of Poor Tax and Fiscal Performance by Government

The rupiah has weakened against the US dollar amid renewed international scrutiny of Indonesia's tax collection and fiscal credibility. Three major credit rating agencies—Moody's and Fitch—have downgraded their outlook to negative, citing concerns over the government's fiscal sustainability as tax revenues have fallen short of targets, with the 2025 budget deficit expanding to 2.92% of GDP. The World Bank has also highlighted Indonesia's persistently low tax-to-GDP ratio of 9.31%, attributed largely to poor taxpayer compliance and inadequate revenue performance over the past decade.

Indonesia's Defence Minister receives Australian Deputy Prime Minister

Indonesia's Defence Minister Sjafrie Sjamsoeddin received Australian Deputy Prime Minister and Defence Minister Richard Marles at the Defence Ministry headquarters in Jakarta on Thursday. The two officials are expected to discuss defence matters and military cooperation between the two countries, though neither provided comments to the media at the meeting's commencement.

Prabowo Confident Indonesia Will Achieve Energy Self-Sufficiency within Four Years

President Prabowo Subianto expressed confidence that Indonesia will achieve energy self-sufficiency within four years, drawing parallels to the country's recent achievement of rice self-sufficiency. He outlined plans to optimise renewable energy sources including geothermal and solar power, with a stated goal of building 100 GW of renewable energy capacity in the shortest possible timeframe, whilst utilising biofuel resources such as palm oil, cassava, maize, and sugar cane.

Aspebindo: Energy distribution infrastructure is key to maintaining energy supply

The Indonesian Energy and Coal Suppliers Association (Aspebindo) has emphasised that robust distribution infrastructure is critical to ensuring stable energy supplies amid growing annual demand for fuel, liquefied petroleum gas, and electricity. The association calls for cross-stakeholder collaboration and public-private partnerships to strengthen the national energy system ahead of Eid al-Fitr 2026, whilst acknowledging global geopolitical risks that may impact energy stability. Energy infrastructure experts stress the need for adaptive and resilient systems that can respond to both domestic demand surges and global supply chain disruptions.

Telkom Indonesia to Cut Subsidiaries from 60 to 14 Entities

PT Telkom Indonesia (Persero) Tbk plans to reduce its subsidiary structure from approximately 60 entities to just 14 as part of its corporate transformation programme. The company will pursue various corporate actions including divestiture, closure of inactive operations, mergers, and reassessment of minority stakes to strengthen its core business focus and improve asset management. This streamlining initiative forms a key pillar of Telkom's medium-term transformation agenda towards 2030 (TLKM 30).

Gojek addresses ride-hailing crisis: many driver partners returning to hometowns for Eid

Gojek has acknowledged a shortage of available drivers in Jakarta during late Ramadan, with many users experiencing delays in ordering ride-hailing and food delivery services, particularly near iftar time. The company attributes the shortage to a combination of increased demand during the peak ordering period and a reduction in driver availability as partners return to their hometowns for Eid celebrations, with additional impacts from heavy rain and traffic congestion.

Tangerang City Administration urges parents to vaccinate children against measles

The Tangerang City Health Department is urging parents to immunise their children against measles and rubella, prioritising children aged 9 months to 15 years. The department has ensured that all 39 primary health centres across the city have adequate stocks of MR vaccine available free of charge, whilst conducting outreach programmes to schools and early childhood facilities to achieve high vaccination coverage and build herd immunity.

Pelni predicts Eid-al-Fitr travel peak at Tanjung Priok Port on H-3

PT Pelni Jakarta anticipates the peak Eid-al-Fitr holiday travel period will occur on 18-19 March at Tanjung Priok Port in North Jakarta, with one vessel departing for central and eastern Indonesian ports. The company projects a 6-7 per cent increase in passenger numbers to approximately 49,100 passengers, attributed to the government's 30 per cent ticket price subsidy programme.

IHSG poised to weaken amid global crude oil price volatility

Indonesia's composite stock index (IHSG) is expected to struggle for significant gains ahead of the Idul Fitri holiday break as global crude oil prices remain volatile, with market analysts projecting sideways movement whilst maintaining critical support levels. Rising oil prices, driven by supply concerns from the Strait of Hormuz and emergency reserve releases by the International Energy Agency, coupled with inflationary pressures from US data, are weighing on investor sentiment ahead of the extended holiday period.

Trump Criticises Spain for Lack of Cooperation with US, Threatens to Halt Trade Relations

President Donald Trump has intensified criticism of the Spanish government, accusing Madrid of insufficient cooperation with the United States and threatening to terminate trade relations over defence spending and military base access disputes. The tensions stem from Spain's refusal to allow US military use of its bases for potential operations against Iran, alongside disputes over NATO defence spending commitments.

Middle East Conflict Prompts US to Release 172 Million Barrels of Oil from Strategic Reserves

The United States announced it will release 172 million barrels of crude oil from its strategic petroleum reserves starting next week to help lower energy prices, which have surged due to Middle East tensions between the US, Israel, and Iran. This action is part of a coordinated release of 400 million barrels by 32 International Energy Agency members, marking the first collective action since Russia's invasion of Ukraine in 2022. The US release is expected to take approximately 120 days to complete.

PIHPS: Red Bird's Eye Chilli at Rp65,750 per kg, Chicken Meat at Rp31,950 per kg

Indonesia's Strategic Food Price Information Centre (PIHPS), managed by Bank Indonesia, has released current retail prices for key food commodities as of Thursday morning. Red bird's eye chillies are priced at Rp65,750 per kilogram, chicken meat at Rp31,950 per kilogram, with comprehensive pricing data also provided for rice varieties, beef, cooking oil, sugar, and other staple foods across the nation.

Transjakarta Corridor 9 Route Diverted Following Overturned Truck Incident Outside Parliament Building

A truck overturned on Jalan Gatot Subroto outside Indonesia's parliament building (DPR/MPR), causing severe traffic congestion that forced Transjakarta to divert its Corridor 9 service between Pinang Ranti and Pluit. Multiple bus routes experienced significant delays as authorities worked to clear the wreckage and restore normal traffic flow in the central Jakarta thoroughfare.

US Oil Imports Could Take 40 Days, Here Is Bahlil's Strategy

Indonesia's Energy Minister Bahlil Lahadalia has announced plans to diversify crude oil import sources away from the Middle East to include the United States, Angola, and African and Latin American countries in response to supply uncertainties caused by regional conflicts. Whilst US oil shipments take approximately 40 days compared to 2-3 weeks from the Middle East, the government plans to secure long-term contracts with staggered logistics arrangements, having successfully applied this approach to LPG imports, which now source 70% from the US.

IEA member states agree to release emergency oil reserves

The International Energy Agency's 32 member states have unanimously agreed to release 400 million barrels of oil from their emergency reserves, the largest coordinated release in the IEA's history, in response to rising prices caused by mounting tensions in the Middle East. The decision follows reports that Middle East conflicts have disrupted oil flows through the Strait of Hormuz, with crude oil and refined product exports falling to less than 10 percent of pre-conflict levels. Individual member states will implement the release according to their national circumstances, with the G7 energy ministers expressing support for proactive measures including the use of strategic reserves.

Tangerang City Administration Deploys Six Integrated Security Posts Along Homecoming Routes

Tangerang City Government has established six Integrated Security Posts (Pospam) and Service Posts (Posyan) at strategic locations along main homecoming routes ahead of Eid holiday travel. The posts, distributed across key traffic points, will serve as rest areas and health check facilities for travellers during the expected peak travel period next week. The city has also coordinated with other agencies and prepared additional measures including traffic control systems, vehicle safety checks, and emergency response personnel.

Mercedes-Benz Driver Intercepted by Debt Collectors Over Four-Month Arrears in North Jakarta

A Mercedes-Benz C300 driver was intercepted by debt collectors in Ancol, North Jakarta on 10 March after allegedly falling four months behind on vehicle instalment payments. Police from Pademangan Police Station mediated between the creditor and debtor, resulting in both parties agreeing that the vehicle owner would settle the outstanding payments. The incident highlights ongoing tensions between debt collection practices and consumer protection, with authorities intervening to facilitate dispute resolution.

Baznas Allocates Rp1.5 Billion to Boost Sumatera Community Economy

Indonesia's National Zakat Board (Baznas) has distributed Rp1.5 billion through its "Kita Jaga Usaha" (We Protect Business) programme to support 1,500 micro-entrepreneurs across 12 districts in Aceh, North Sumatera, and West Sumatera who have been affected by disasters. Each beneficiary receives Rp1 million in direct assistance, with Baznas targeting to expand the programme to 5,000 recipients with a total budget of Rp5 billion, whilst providing ongoing mentorship and supervision to ensure funds are used productively.

PT Vale Strengthens Collaboration on Rp30 Trillion IGP Morowali Investment

PT Vale Indonesia has reinforced its partnership with Morowali Regency Government and local stakeholders through the Indonesia Growth Project (IGP) Morowali, a strategic investment worth approximately 2 billion US dollars aimed at strengthening the nation's mineral downstream ecosystem. The mining infrastructure development has reached 99 per cent completion, with the High Pressure Acid Leach (HPAL) processing facility at 27 per cent completion and expected to become operational between 2026 and 2027. PT Vale is also implementing comprehensive community development programmes across eight pillars, including education, healthcare, and environmental management, whilst contributing to regional and national revenue through nickel ore sales of approximately 2.2 million tonnes annually.

Rupiah Exchange Rate Today, 12 March 2026: Weakens to Rp16,906

The rupiah weakened against the US dollar on 12 March 2026, reaching Rp16,906 per dollar, down 57.9 points or 0.34% from the previous closing. The decline was driven by external sentiment stemming from US economic data strengthening the dollar index, combined with increased foreign currency demand ahead of the Lebaran 2026 holiday period and investors' shift towards safe-haven assets amid domestic market uncertainty.

Envision Energy Installs Largest Wind Turbine for International Market in Philippines, Driving Renewable Energy Future

Envision Energy has successfully installed the first 8 MW wind turbine for the Alabat Wind Power Plant project in the Philippines, marking the largest turbine the Chinese company has ever exported to the international market. The 64 MW project, developed by Alternergy Holdings Corporation as part of the Philippine government's Green Energy Auction Program Round 2, demonstrates Envision's capability to deploy large-scale renewable energy infrastructure in challenging environments whilst supporting the region's transition to sustainable energy.

Community Members Moved to Receive Ramadhan Rice Boxes, "May UBSI Become Ever More Blessed"

Bina Sarana Informatika University (UBSI) has launched a Ramadhan rice box distribution programme, providing hundreds of packed meals to nearby communities and daily workers each weekday evening before iftar. The initiative, which operates from the Fatmawati campus in Jakarta, reflects the university's commitment to social responsibility and community engagement during the holy month, with beneficiaries expressing deep gratitude for the support provided.

Police Seize Office and Land Worth Rp300 Billion in PT DSI Fraud Case

The Indonesian National Police's Economic Crime Directorate has seized assets valued at approximately Rp300 billion from three suspects in a major fraud case involving PT Dana Syariah Indonesia (DSI), which caused losses of Rp2.4 trillion affecting 15,000 victims between 2018 and 2025. The seized assets include luxury properties, land across multiple locations, bank accounts, and cash belonging to PT DSI's chief executive Taufiq Aljufri, former director Mery Yuniarni, and commissioner Arie Rizal Lesmana. The fraud scheme involved the creation of fictitious investment projects using existing borrower data to deceive investors.

Police Seize Offices and Land Worth Rp300 Billion in Islamic Finance Fraud Case

Indonesian police have seized assets totalling Rp300 billion from three suspects in a fraud case involving PT Dana Syariah Indonesia (DSI), an Islamic finance company accused of defrauding some 15,000 investors of Rp2.4 trillion between 2018 and 2025. The seized assets include luxury properties, extensive land holdings across multiple regions, and cash from numerous bank accounts, as investigators continue tracing additional assets to recover losses for victims. The three suspects—DSI's chief director Taufiq Aljufri, former director Mery Yuniarni, and commissioner Arie Rizal Lesmana—are accused of creating fictitious projects to deceive lenders in what authorities describe as a systematic investment fraud scheme.

Kuwait Cabinet Announces Eid Al-Fitr Holiday Schedule from 19 March 2026, with Contingency Plans for 29 or 30-Day Ramadan

Kuwait's Cabinet has announced official Eid Al-Fitr holiday dates contingent on the duration of Ramadan in 2026, with holidays either 19–23 March (if Ramadan lasts 30 days) or 19–22 March (if it lasts 29 days). The exact dates will be confirmed following official hilal sighting results that mark the end of Ramadan, mirroring Indonesia's practice of scheduling holidays based on Islamic court rulings.

Alamtri (ADRO) Plans to Buyback Shares Worth Rp4 Trillion, Check the Schedule

PT Alamtri Resources Indonesia Tbk. (ADRO) has announced plans to conduct a share buyback worth up to Rp4 trillion, representing no more than 10% of its issued and paid-up capital. The buyback will be executed over a maximum 12-month period following shareholder approval at the annual general meeting scheduled for 17 April 2026, with the company aiming to improve share liquidity and reflect its true fundamental value.

Adhi Makayasa Recipient Major General Lucky Avianto Appointed as Commander of Joint Regional Defence Command III

The Indonesian Armed Forces Commander has appointed Major General Lucky Avianto as Commander of the Joint Regional Defence Command (Pangkogabwilhan) III, replacing Lieutenant General Bambang Trisnohadi who has been reassigned to Chief of Territorial Staff. Avianto, a decorated military officer with extensive experience in special forces operations, previously commanded the 24th Military Regional Command in South Papua.

Antam gold price falls slightly to Rp3,042,000 per gram on Thursday

PT Antam's gold price declined marginally on Thursday to Rp3,042,000 per gram from Rp3,047,000 per gram, whilst its buyback price fell to Rp2,804,000 per gram. The article provides a comprehensive list of Antam's precious metals prices across various denominations and outlines the applicable income tax regulations for gold transactions under Indonesian tax law.

Police Deploy 44 Communications Personnel to Secure 2026 Mudik Routes

The Indonesian National Police (Polri) has deployed 44 personnel from a Public Relations Task Force to support Operation Ketupat 2026, which oversees security during the mudik (homecoming) period for Eid al-Fitr 1447 Hijriah. The personnel will disseminate timely and accurate information to the public regarding security arrangements, with a peak movement of approximately 143 million people anticipated during the period. Polri has established 2,756 security posts across strategic locations and is encouraging citizens to ensure vehicle safety and utilise emergency services by calling 110 if assistance is needed.

Indodax Responds to Muhammadiyah Fatwa: Crypto Assets Valid for Investment

Muhammadiyah's Central Leadership issued a fatwa in March 2026 permitting cryptocurrency assets to be regarded as valuable digital assets suitable for investment under Islamic jurisprudence, though prohibiting their use as payment instruments due to price volatility. Indodax's Vice President Antony Kusuma welcomed the fatwa as an important reference for Muslim investors seeking Sharia-compliant investment guidance, emphasising the need for risk management literacy among crypto investors. The fatwa clarifies permissible crypto activities including long-term investment and spot trading, whilst prohibiting futures trading, margin trading, market manipulation, and short selling.

Garuda Indonesia Defends High Domestic Airfares During Lebaran 2026 Migration Period

Lasarus, Chair of the Parliamentary Commission V, has raised concerns about Garuda Indonesia's high domestic flight tickets being more expensive than some international routes during the 2026 Lebaran migration period, particularly for a state-owned enterprise experiencing financial difficulties. Garuda Indonesia responded that its pricing adheres to government-set regulatory ceiling fares, whilst critics argue the carrier maintains inflexible, non-dynamic pricing that remains at maximum allowed rates regardless of demand fluctuations, unlike international routes which adjust seasonally.

OJK Chief Reveals MSCI Has Received Indonesian Capital Market Reform Proposal

The new Chairman of the Financial Services Authority (OJK) Board of Commissioners, Friderica Widyasari Dewi, has disclosed that global rating agency MSCI has received Indonesia's capital market reform proposal, though MSCI will not automatically approve it without demonstrating consistent implementation. The OJK faces the challenge of ensuring fulfilment of the reform initiatives to restore investor confidence and reverse recent negative market outlooks that triggered a sharp 8% decline in the composite stock index.

Chinese Foreign Minister Discusses Middle East Situation with Four Islamic Nations

China's Foreign Minister Wang Yi held telephone conversations with foreign ministers from Kuwait, Bahrain, Pakistan, and Qatar to discuss escalating tensions in the Middle East following military strikes by the United States and Israel on 28 February 2026 that killed Iran's Supreme Leader Ayatollah Ali Khamenei. Wang Yi emphasised China's commitment to promoting peace through dialogue and negotiation, condemned attacks on civilian targets, and stated that unauthorised military actions violate international law, whilst the Gulf states reaffirmed their dedication to peaceful resolution whilst maintaining their legitimate right to self-defence.

Australian Deputy Prime Minister Meets Indonesian Defence Minister

Australian Deputy Prime Minister and Defence Minister Richard Marles visited Indonesia's Defence Ministry in Jakarta on 12 March 2026 to meet with Defence Minister Sjafrie, marking their second meeting since June 2025. The officials discussed military cooperation, including plans to utilise the Morotai training facility in Maluku for joint exercises between the Indonesian Air Force and Royal Australian Air Force, aimed at strengthening bilateral relations and regional security stability.

TOBA Rights Issue: Do Investors Stand to Gain or Face Dilution?

PT TBS Energi Utama Tbk (TOBA) has announced plans for a rights issue of 1.39 billion shares at 50 rupiah nominal value, expected to raise approximately 417 billion rupiah to fund expansion into waste management, renewable energy, and electric vehicles. Existing shareholders face potential ownership dilution of up to 14.23 per cent if they do not participate, whilst the market has responded positively with the share price rising nearly 8 per cent; however, analysts caution that rights issue sentiment is typically temporary and investors must scrutinise the implementation price, fundamental business prospects, and productive use of capital before making investment decisions.