Indonesian Political, Business & Finance News

Archive: 13 March 2026

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Three Kidnappers of State Bank Branch Manager Ilham Pradipta Charged with Premeditated Murder

Three defendants—Candy (alias Ken), Dwi Hartono, and Antonius Aditia Maharjuni—have been charged with premeditated murder in connection with the kidnapping and killing of Mohammad Ilham Pradipta, a branch manager at a state-owned bank. Prosecutors allege the defendants orchestrated the crime after Ken's failed attempts to recruit bank branch heads to participate in an illegal fund transfer scheme involving dormant accounts worth approximately 455 billion rupiah.

Metro Police Chief Emphasises Professionalism Among Young Officers

The Head of Metro Jakarta Police, Inspector General Asep Edi Suheri, has stressed the importance of discipline and professionalism to 1,000 newly graduated junior and non-commissioned officers from the Mobile Brigade Basic Training Programme 2026. The officers were instructed that their education marks the beginning, not the end, of their service to the nation, and they must act with both firmness and humanity in serving the community.

Prabowo instructs officials: Eid open houses should not be excessively lavish

President Prabowo Subianto has instructed government officials to avoid hosting overly lavish open houses during Eid al-Fitr 1447 AH, citing the need to set a good example for the public and noting ongoing disaster situations in Sumatra. He also cautioned against completely cancelling festivities to ensure the economy continues functioning.

Said Abdullah Responds to Proposals for Budget Deficit Above 3 Per Cent of GDP

The head of Indonesia's Parliamentary Budget Committee, Said Abdullah, stated that the government has not yet initiated formal discussions with parliament regarding proposals to widen the budget deficit above 3 per cent of GDP and implement quantitative easing. While cautioning against rushing into such measures, Said acknowledged that Indonesia's current fiscal space could accommodate budget discipline, emphasising that any economic policy requires clear foundations, objectives, and strategies grounded in comprehensive economic analysis.

Commission XI of Parliament Responds to Option of State Budget Deficit Above 3 Per Cent

Senior figures in Indonesia's parliament and finance ministry have denied knowledge of government discussions to raise the state budget deficit ceiling above the current 3 per cent limit of gross domestic product. The head of parliament's Budget Body stated the government still has fiscal space to operate below 3 per cent, cautioning that whilst expanding the deficit would provide short-term fiscal room, it could increase medium-term fiscal burdens through heightened debt servicing.

China Insulated from Crisis: Impact across Various Investment Instruments

The article analyses why China maintains secure access to Iranian oil through the Strait of Hormuz whilst Western vessels face security threats and rising insurance costs, examining the geopolitical and economic implications for global markets and investment portfolios. It attributes China's immunity to a 25-year strategic partnership worth $400 billion, utilisation of "dark fleet" tankers, and infrastructure diversification including the Jask terminal, which collectively threaten US economic hegemony and dollar dominance. The analysis recommends a resilient investment strategy incorporating gold as a hedge, exposure to American energy stocks via S&P 500, Chinese technology equities, and careful management of Nasdaq-heavy portfolios amid potential stagflation risks.

Armed Forces Spokesman Explains Rationale for Alert Level 3 Status

The Indonesian Armed Forces (TNI) commander has downgraded the military alert status from Level 1 to Level 3 across all personnel. The TNI's Public Information Chief stated that the downgrade remains part of operational readiness protocols, with all service members remaining prepared to respond to assignments whilst continuing routine duties at their respective units.

Police Reveal Condition of KontraS Activist Following Corrosive Liquid Attack

Police have disclosed details regarding the condition of Andrie Yunus, 27, Deputy Coordinator of the Commission for Missing Persons and Victims of Violence (KontraS), who was attacked with corrosive liquid by an unknown assailant in Jakarta's Salemba area on 12 March 2026. The victim sustained burns to his chest, face, and hands and is currently undergoing medical treatment. National Police Chief General Listyo Sigit Prabowo has given special attention to the case, with investigations being conducted scientifically to identify the perpetrator and determine the motive.

CPO Production Reaches 51.66 Million Tonnes in 2025, Up 7.26 Per Cent

Indonesia's crude palm oil (CPO) production reached 51.66 million tonnes in 2025, marking a 7.26 per cent increase from 48.16 million tonnes in 2024, according to the Indonesian Palm Oil Producers Association (GAPKI). Combined CPO and palm kernel oil (PKO) production totalled 56.55 million tonnes, with domestic consumption rising 3.82 per cent, driven primarily by a 10.97 per cent surge in biodiesel consumption following the increase of the biodiesel blend mandate from 35 to 40 per cent.

Former Taspen Chief Executive Antonius Kosasih Files Cassation Appeal to Supreme Court Over Fictional Investment Case

Former PT Taspen chief executive Antonius Kosasih has filed a cassation appeal with Indonesia's Supreme Court to challenge his 10-year prison sentence in a fictional investment fraud case. The Jakarta High Court had previously upheld the conviction and ordered Kosasih to pay compensation of Rp 29.152 billion plus various foreign currencies. A co-defendant, Ekiawan Heri Primaryanto, did not appeal his 9-year sentence, which is now final.

Three Central Java Regents Caught in KPK Sting Operation in Early 2026

Three regents in Central Java's Pati Regency were arrested in a corruption sting operation by Indonesia's Anti-Corruption Commission (KPK) in January 2026. The operation resulted in the seizure of 2.6 billion rupiah in cash allegedly linked to extortion related to village administrative positions. The KPK alleges the officials systematically collected bribes from candidates seeking village administrative posts, with charges filed under Indonesia's anti-corruption laws.

Has Cambodia Successfully Thwarted Half of Online Scam Cases?

Cambodia's authorities claim to have reduced online fraud activity by half since the start of the year, citing the departure of over 210,000 foreign scam operators and the arrest of 30,000 others. However, international human rights groups and analysts remain sceptical, questioning the transparency of investigations and the government's commitment to prosecuting high-level operators with political connections, particularly as these scams have cost Americans at least US$10 billion in 2024 alone.

Parliamentary Education Commission Supports Ban on Instant AI in Schools to Prevent Student Dependency

Indonesia's parliamentary education commission has endorsed a government ban on instant AI tools such as ChatGPT for primary and secondary school students, arguing that students must develop critical thinking rather than depend on technology for immediate answers. The commission welcomes plans to integrate artificial intelligence and coding into the curriculum as educational subjects whilst maintaining strong regulatory frameworks, and supports the government's development of child-safe AI platforms.

Sexual Violence Victim Services in Indonesia Remain Unequal

One in four Indonesian women aged 15–64 have experienced physical or sexual violence in their lifetimes, according to the 2024 National Women's Life Experience Survey, yet most cases go unreported due to social stigma and limited service access. The government has issued Presidential Regulation No. 55 of 2024 to establish coordinated protection services, but implementation faces significant challenges including inadequate hospital capacity, uneven geographic distribution of services, and the need for stronger community support networks to encourage survivors to seek help.

Human Rights Minister Pigai Demands Thorough Investigation into Acid Attack on Kontras Activist

Human Rights Minister Natalius Pigai has condemned an acid attack on Andrie Yunus, Deputy Coordinator of Kontras (Commission for the Disappeared and Victims of Violence), which occurred in Central Jakarta on 12 March. Yunus suffered 24 per cent burns to his body following the assault by two unidentified perpetrators on a motorcycle, and Pigai has called for a swift and objective police investigation to bring the attackers to justice and uphold the rule of law.

Prabowo Orders TNI to Deploy Vessels to Assist Mudik Operations for Eid 2026

President Prabowo Subianto has instructed the Indonesian Military (TNI) Navy and Army to mobilise vessels during the 2026 Eid mudik season to facilitate citizens' homecoming travel. In a Red-and-White Cabinet meeting, Prabowo also tasked the police and transport ministry with implementing fare discounts, improving service quality at rest areas and transport hubs, and ensuring timely distribution of holiday allowances and food aid to 35 million vulnerable households.

Danantara Announces Waste-to-Energy Partner for Greater Bogor

Danantara Indonesia has selected Zhejiang Weiming Environment Protection Co., Ltd. as the operational partner for a Waste-to-Energy facility in Greater Bogor, following a comprehensive selection process outlined in Presidential Decree No. 109/2025. The facility will operate with a focus on strong operational reliability, responsible environmental management, and technology transfer collaboration with local stakeholders.

Odd-Even Traffic Restrictions for Eid Holiday Travel: Police Confirm No Law Enforcement

Indonesian police have announced that whilst implementing odd-even vehicle restrictions on toll roads during the 2026 Eid holiday travel period, they will not enforce these regulations with legal penalties. The government anticipates 143.9 million trips during this period, with peak travel expected around 14-15 March and return journeys peaking on 24-25 March.

President Prabowo urges holistic preparations for Eid al-Fitr

President Prabowo has issued comprehensive directives to cabinet members and security officials to ensure safe and comfortable Eid al-Fitr homecoming celebrations, instructing ministers to implement transport fare reductions, mobilise security forces, distribute social assistance accurately, and maintain food price stability. The government is prioritising welfare measures including on-time payment of Eid bonuses (THR) for state workers and announcing subsidies for online taxi drivers, whilst stressing the importance of safeguarding the economy amid global uncertainties.

Police Give Special Attention to Acid Attacks on Kontras Activist, Pledge Thorough Investigation

The Indonesian National Police have pledged a thorough investigation into an alleged acid attack on Andrie Yunus, Deputy Coordinator of the Commission for the Disappeared and Victims of Violence (Kontras), in central Jakarta on 12 March 2026. Yunus suffered burns covering 24 per cent of his body and is currently receiving medical treatment; Kontras believes the attack was intended to silence human rights advocates and demands protection under Indonesian human rights legislation.

Finance Minister Denies Rupiah Collapse, Claims Only 0.3 Percent Depreciation

Finance Minister Purbaya Yudhi Sadewa rejected claims that the rupiah currency has collapsed, stating that since the onset of geopolitical tensions, the rupiah has depreciated only 0.3 percent. He cited stable indicators including Indonesia's five-year Credit Default Swap premium and strong investor confidence, arguing that domestic market participants are the primary source of pessimism rather than international investors.

Denpasar Police Arrest 124 Suspects in 100 Theft Cases Over Three Months

The Denpasar City Police Department has arrested 124 suspects in connection with 100 theft cases during the January-March 2026 period, encompassing four categories of theft crime including aggravated theft, robbery with violence, motor vehicle theft, and simple theft. Police recovered 22 motorcycles, two cars, jewellery weighing 130 grams, and 15 mobile phones, with suspects facing charges under the Criminal Code with maximum sentences of nine years imprisonment. Law enforcement authorities have committed to intensifying patrols ahead of the Nyepi and Idul Fitri holidays to suppress crime rates.

Prabowo Urges Minister of Social Affairs to Distribute Food Assistance on Time

President Prabowo Subianto has instructed the Minister of Social Affairs to ensure timely distribution of additional food assistance to 35 million beneficiary families, particularly those in the lowest income deciles (1-4). The president has also called for acceleration of priority government spending programmes including housing finance schemes to support economic recovery and improve access to basic needs.

Google Loses at Indonesia's Supreme Court

Indonesia's Supreme Court has rejected Google LLC's cassation appeal, upholding a 202.5 billion rupiah fine imposed by the Business Competition Supervisory Commission (KPPU) for alleged monopolistic practices and abuse of dominance in its Google Play Store payment system. The final court decision requires Google to cease mandatory use of its proprietary billing system and allow alternative payment options for app developers, marking a significant landmark case in Indonesia's enforcement of competition law against digital platform businesses.

Ahead of Eid al-Fitr, Chilli Prices in Malang Remain Elevated

The Malang District Food Security Task Force reported that chilli prices remain relatively high ahead of Eid al-Fitr 2026, with small chillies at Rp 80,000 per kilogramme and large chillies at Rp 32,000 per kilogramme. Whilst supplies are flowing steadily from producers, the supply-demand imbalance is expected to keep prices elevated during the festive period, though prices are moderating compared to pre-Ramadan levels.

Safe Limits for Carrying Goods During Holiday Travel; No Need to Load the Roof

Ahmad Wildan, head of the Land Transport Traffic Subcommittee at Indonesia's National Transportation Safety Committee, warns that vehicles should not exceed their seating and luggage capacity, particularly by loading goods on the roof during mudik (mass annual homecoming travel). Overloading, especially on roofs, raises the vehicle's centre of gravity, reducing stability, increasing rollover risk, lengthening braking distances, and accelerating wear on suspension components; distribution should be balanced with heavier items placed low in the vehicle rather than on top.

Civil Police Intensify Raids on Social Welfare Cases and Illegal Alcohol

The Civil Police Unit (Satpol PP) in Jatinegara, East Jakarta, has intensified raids targeting People in Need of Social Welfare Services (PPKS) and illegal alcohol sales as part of a public health operation during Ramadan. The operation, involving approximately 50 personnel from the military and police, has resulted in the seizure of 60 bottles of alcohol, 235 suspect pharmaceutical pills, and 12 firecrackers, with similar enforcement actions also conducted in Matraman District.

Prabowo Criticises Commentators Lacking Patriotic Stance: Perhaps Because They Feel Defeated, Have No Power

President Prabowo Subianto has criticised political commentators for being pessimistic about Indonesia's economy amid Middle Eastern conflicts, characterising their attitudes as narrow-minded rather than patriotic. Prabowo claimed to possess intelligence data identifying those funding critics and suggested they would eventually be "disciplined," though he stated his current approach focuses on convincing the public through evidence.

Free Float Threshold Still Below 15%, Bank Permata (BNLI) Responds

PT Bank Permata Tbk (BNLI) has stated it is monitoring market developments regarding the Indonesian regulator's requirement to increase free float shareholding from 7.5% to 15% by February 2026. The bank, which is currently at 9.88% free float for ordinary shares and 1.0% for warrants, indicated it is working with parent company Bangkok Bank to find appropriate means to meet the new threshold, whilst awaiting formal regulatory guidance. The increased free float requirement follows MSCI's concerns about market transparency and coordinated trading behaviour on the Indonesian stock exchange.

Prabowo Instructs Transport Fare Discounts and TNI-Polri Asset Deployment to Ensure Smooth 2026 Lebaran Exodus

President Prabowo Subianto has instructed the Transport Minister to implement transport fare discounts across airlines, railways, maritime services, and toll roads for the 2026 Lebaran exodus to ease the financial burden on citizens and distribute passenger congestion. He also directed the TNI Commander and National Police Chief to mobilise military and police assets, including naval and land vessels, as alternative transport solutions during peak travel periods. The Cabinet meeting also highlighted the government's swift completion of 218 bridges across Indonesia within 2.5 months to strengthen national connectivity ahead of the major holiday.

Cilacap Regent Undergoes KPK Questioning at Banyumas Police Headquarters

Cilacap Regent Syamsul Auliya Rachman was arrested in the Corruption Eradication Commission's (KPK) ninth operation of 2026 and ninth overall in Ramadhan 1447 H, marking the third arrest of a regional head. The regent is undergoing initial questioning at Banyumas Police Criminal Investigation Unit after the anti-corruption operation in Cilacap on Friday afternoon. The KPK has 24 hours to determine the official status of those arrested in accordance with Indonesia's Criminal Procedure Code.

Parliamentary Member: Acid Attack on KontraS Activist Must Be Fully Investigated

A member of Indonesia's House of Representatives has called for law enforcement to thoroughly investigate the acid attack on a KontraS activist that occurred on 12 March 2026, demanding that both the perpetrator and motive be uncovered. The activist, Andrie Yunus, sustained 24 per cent burn injuries and the incident is suspected to be an attempt to silence human rights defenders following a podcast recording session.

Transjakarta Route Tanjung Priok-PGC Disrupted Due to Overturned Container Truck

Transjakarta Corridor 10 serving the Tanjung Priok-PGC route experienced service disruptions on Friday 13 March after a container truck overturned in Cilincing, causing traffic delays to Tanjung Priok Terminal. Several bus routes, including Mikrotrans JAK 113 and route 11D, were rerouted or suspended at certain stops due to congestion from the incident and cargo handling operations at Tanjung Priok Port.

Passenger Traffic on Trans Sumatra Highway Predicted to Rise, Hutama Karya on Standby at 822 Kilometres

PT Hutama Karya has launched a readiness operation for the 2026 Lebaran exodus period across the Trans Sumatra toll road network, which spans 822.609 kilometres and is expected to experience a 47.67% increase in vehicle traffic compared to normal conditions. The company has completed all routine and periodic maintenance work and implemented integrated traffic management strategies, including enhanced rest area facilities, traffic engineering systems, and an online travel guide to ensure safe and smooth journeys for returning travellers during the holiday season.

Finance Minister Purbaya Addresses Investment and Operational Obstacles Facing Major Corporations

Finance Minister Purbaya Yudhi Sadewa chaired a debottlenecking meeting on 13 March 2026 to resolve investment and operational barriers facing major Indonesian companies, with focus on three main issues including import licensing, product standards, and land management conflicts. The Minister prioritised resolving PT Samator Indo Gas Tbk's trade licensing problem, pledging completion before Monday, whilst also addressing unclear service level agreements for SNI (Indonesian National Standard) certification that currently average over a year in processing time.

Prabowo and Cabinet Ministers Pay Zakat Fitrah at Palace

President Prabowo Subianto and his cabinet ministers paid zakat fitrah and zakat mal at the State Palace in Jakarta on 13 March 2026, with the zakat distributed through the National Zakat Board. Following the zakat payment, Prabowo convened a full cabinet meeting to discuss the government's preparations for the 2026 Eid al-Fitr celebrations.

Foreign Minister Sugiono at SAFMM: ASEAN Pushes for De-escalation and Dialogue in Middle East

Foreign Minister Sugiono attended a Special ASEAN Foreign Ministers Meeting on 13 March 2026 to discuss the Middle East conflict and its impact on the ASEAN region, particularly concerning the safety of ASEAN citizens and energy supply disruptions. Indonesia urged ASEAN cooperation on citizen protection and coordinated efforts, whilst promoting de-escalation and dialogue with various nations to reduce regional tensions.

Ensure Service Standards Maintained During 2026 Mudik Period, Minister of State Apparatus and Bureaucratic Reform Inspects Transport Sector Services

Indonesia's Minister of State Apparatus and Bureaucratic Reform Rini Widyantini inspected transportation services at Gambir Station in Jakarta to ensure readiness for the 2026 Lebaran exodus, as part of the government's mandate to evaluate public services. The Ministry of PANRB is collaborating with state railway operator PT Kereta Api Indonesia (KAI) to conduct public satisfaction surveys during the mudik period, using QR codes to gather direct feedback from travellers on service quality.

BRI's People's Business Credit Scheme Boosts Revenue; Tile Manufacturers in Majalengka Inundated with Orders

President Prabowo Subianto's roof-tiling programme has stimulated significant demand for small-scale building material producers, with tile manufacturers in Majalengka receiving orders from across Java. Hj. Nurhasanah, a tile craft producer, credits the BRI's People's Business Credit (KUR) scheme with enabling her family business to sustain growth, though labour shortages remain a challenge despite monthly revenues in the hundreds of millions of rupiah.

Prabowo demands stable fuel supplies, electricity and internet during Eid celebrations

President Prabowo Subianto has instructed his cabinet to ensure stable supplies of fuel, electricity and internet services during the Eid holiday period, whilst also demanding improvements in service quality at rest areas, ports, airports and stations to facilitate smooth travel during the mass exodus. The President has additionally tasked relevant ministers with maintaining stable and safe food supplies and controlling prices during Eid, whilst emphasising that Indonesia's economy must continue to function smoothly despite global uncertainties.

Parliamentary Commission V Raises Concerns Over Jakarta-Merak Toll Road Before Eid Exodus: Damaged Road Causes Congestion

Parliamentary Commission V conducted an inspection of the Jakarta-Merak toll road and found it is not yet fully fit for the peak Eid holiday exodus, with significant congestion already occurring due to road damage including potholes and water pooling. Commission head Robert Rouw emphasised that the poor road conditions pose a risk of severe traffic jams during the Eid mass exodus and called on the government to complete repair work before the holiday period. The Commission will continue monitoring infrastructure readiness, particularly focusing on mitigation measures for flooding and support facilities along the toll route.

Prabowo Directs Fuel Savings amid Middle East Conflict Fallout

President Prabowo Subianto has instructed all parties to implement fuel conservation measures in response to global developments in the Middle East and Europe, citing concerns that regional conflicts could drive up crude oil and thus domestic fuel prices. During a full cabinet meeting at the State Palace, Prabowo emphasised the need for proactive measures to reduce fuel consumption, noting that whilst the government has secured food supplies, it must accelerate contingency plans and encourage conservation across the economy. The President stressed that Indonesia cannot assume security without implementing such adaptive measures, a practice already adopted by numerous countries facing similar geopolitical risks.

Deputy Minister of Home Affairs Conducts Inspection at Yowari Hospital, Urges Healthcare Service Improvements

Deputy Minister of Home Affairs Ribka Haluk conducted a surprise inspection of Yowari General Hospital in Jayapura Regency, Papua, to assess healthcare service delivery. Haluk warned that if significant improvements are not made within months, the central government may assume full control of the hospital's operations, whilst urging the hospital management to eliminate patient rejections and ensure quality public healthcare services.

This Week in the Indonesian Economy (6-12 Mar 2026)

The week of 6 to 12 March 2026 will likely be remembered as one of the most consequential in recent Indonesian economic history -- not because of any single domestic development, but because a distant conflict reshaped the national agenda with remarkable speed.

Viral Wig Factory Strike Over Festive Allowance Payment in Bantul

Hundreds of workers at PT Dong Young Tress, a wig factory in Piyungan, Bantul, staged a strike on Friday in protest against management's plan to stagger the payment of Tunjangan Hari Raya (THR, festive allowance). The Bantul Department of Manpower and Transmigration has stated that a meeting between the factory and authorities has taken place and will oversee resolution of the dispute.

Indonesia's Foreign Minister urges ASEAN to strengthen resilience amid war impacts

Indonesia's Foreign Minister Sugiono has called for de-escalation and emphasised the need for ASEAN to strengthen regional coordination and resilience in response to the impacts of the US-Israel-Iran conflict, which poses risks to the region's stability, global economic conditions, and energy security. The call was made during an emergency ASEAN Foreign Ministers' Meeting chaired by the Philippines on Friday, where member states discussed collective measures to support ASEAN nationals in affected areas and reinforce regional energy cooperation initiatives.

This Week in Indonesian Politics (6-12 Mar 2026)

The week of 6–12 March 2026 will long be remembered as one of the most consequential in recent Indonesian political memory, dominated by a landmark anti-corruption arrest, a sweeping Eid security mobilisation, urgent diplomatic manoeuvring amid a Middle East in flames, and a raft of legislative milestones that signal the Prabowo administration’s determination to reshape the republic’s institutional landscape.

Sandiaga Uno: Companies Must Be Adaptive and Creative Amid Economic Turmoil

Former Tourism and Creative Economy Minister Sandiaga Uno emphasised the importance of adaptability, collaboration, and creativity for businesses facing global economic changes and challenges. Bloom Group, a diversified conglomerate operating in energy, logistics, and creative media sectors, exemplifies this strategy by integrating fundamental industries with digital creativity to maintain resilience in volatile markets.

Lanny Jaya Regent Calls for Educational Equity Extending to Remote Villages

The Regent of Lanny Jaya district in Papua Pegunungan province has called for equitable access to education throughout the region, including remote areas, whilst overseeing the appointment of a new education chief. The local government is prioritising human resource development and strengthening oversight of teaching activities to ensure all students receive quality education and adequate teacher presence.

This Week in Indonesian Business and Investment (6-12 Mar 2026)

The week of 6--12 March 2026 proved to be one of the most turbulent and consequential in recent Indonesian economic memory, dominated by a Middle Eastern crisis that reverberated across every corner of the domestic financial landscape while, paradoxically, generating unexpected commercial windfalls for the archipelago's resource exporters.