Indonesian Political, Business & Finance News

Archive: 14 April 2026

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Indef: Metal Mineral Downstreaming Contributes to Investment Realisation

Economist Eko Listiyanto from the Institute for Development of Economics and Finance (Indef) states that downstreaming in the metal industry subsector significantly boosts investment realisation in Indonesia, primarily due to the large-scale funding required, attracting major investors. According to projections from the Ministry of Investment and Downstreaming, the basic metal industry is expected to see the highest investment of around Rp67 trillion in the first quarter of 2026, followed by transportation, warehousing, and telecommunications at Rp54 trillion, and mining at Rp51 trillion. Minister Rosan Roeslani emphasises the government's commitment to strengthening policies to sustain investment growth and support national economic targets.

Fearing Attack by Pro-Iran Militias, US Aircraft Carrier Circles Africa to Reach the Middle East

The US aircraft carrier USS George H.W. Bush and its escorts are sailing around southern Africa to avoid potential attacks by Houthi groups in the Red Sea and Bab el-Mandeb Strait, opting out of the usual Mediterranean route via the Strait of Gibraltar. This deployment comes amid a US naval blockade in the Strait of Hormuz, implemented following failed negotiations between Washington and Tehran under President Donald Trump's directives. The carrier is preparing to join growing US naval forces in the Arabian Sea, highlighting escalating tensions in the region.

Defence Ministry: US Aircraft Flight Permissions over Indonesian Territory Not Included in MDCP

Indonesia's Ministry of Defence has clarified that the Letter of Intent submitted by the United States for overflight clearances is not part of the recently signed Major Defense Cooperation Partnership (MDCP) agreement. The MDCP, inked by Defence Minister Sjafrie Sjamsoeddin and US Secretary of War Pete Hegseth, focuses on military organisation, professional training, and operational cooperation while upholding national sovereignty and mutual respect. Officials emphasise that any future decisions on US aircraft activities will prioritise Indonesia's sovereignty, national interests, and compliance with domestic and international laws, ensuring all collaborations benefit the nation without compromising its free and active foreign policy.

IDR 497 Trillion of Investment Entered Indonesia from January to March 2026

Indonesia attracted investments worth IDR 497 trillion in the first quarter of 2026, marking a 6.9% increase from the same period in 2025 and creating 627,000 new jobs. The Minister of Investment and Industrialization highlighted the government's downstream programme as a key driver, with the basic metal industry leading inflows at IDR 67 trillion, followed by transportation and mining sectors. Major investments originated from Singapore, China, Japan, South Korea, and the United States, underscoring Indonesia's appeal amid global economic challenges.

Investment of Rp497 Trillion Enters Indonesia in January to March 2026

Indonesia achieved an investment realisation of Rp497 trillion in the first quarter of 2026, marking a 6.9% increase from the same period in 2025, as announced by Minister of Investment and Downstreaming Rosan Roeslani. This influx is projected to create 627,000 new jobs, with significant contributions from the government's downstreaming programme, particularly in basic metal industries, transportation, mining, and data centres. Leading investor countries include Singapore, China, Japan, South Korea, and the United States, while Jakarta, West Java, and East Java emerged as top destinations for these investments.

KPK summons treasurer and staff from Hulu Sungai Utara District Prosecutor's Office in South Kalimantan

The Corruption Eradication Commission (KPK) has summoned the assistant expenditure treasurer and a staff member from the Hulu Sungai Utara District Prosecutor's Office in South Kalimantan as witnesses in an ongoing corruption investigation. This follows a December 2025 sting operation where KPK arrested six individuals, including the prosecutor's chief Albertinus Parlinggoman Napitupulu and intelligence section head Asis Budianto, on suspicion of extortion related to law enforcement processes. The case highlights persistent corruption challenges within Indonesia's judicial institutions, with KPK seizing assets and detaining suspects to ensure accountability.

Two Arrested in Connection with 'Jin Pill' Factory in Semarang, Eight Others on the Run

Police from the Metro Jaya Police Narcotics Directorate and the West Jakarta Metro Police Resort Narcotics Unit raided an illegal factory producing Zenith Carnophen, known as 'jin pills', in Mijen, Semarang, Central Java, arresting two suspects including a rogue police officer while eight others remain fugitives. The operation seized 306,000 ready-to-distribute pills, 1.83 tons of precursor materials capable of producing millions more, and production machinery, preventing the circulation of over 4.3 million potentially lethal doses targeting youth and workers. The suspects face charges under the new Criminal Code and narcotics laws, highlighting the organised and dangerous nature of the network.

Bulk Cooking Oil Price Increase Shifts Buyers to MinyaKita

Bulog's Director General, Ahmad Rizal Ramdhani, conducted surprise market inspections in Jakarta to ensure the stability of essential food prices, finding rice and MinyaKita cooking oil aligned with maximum retail price caps, while bulk oil prices have risen due to surging packaging costs from Middle East naphtha supply disruptions. This shift in consumer preference towards packaged MinyaKita has boosted demand, prompting calls for increased supply, amid broader efforts to prevent food price hikes in line with presidential directives. Other staples like eggs, sugar, and meats showed mixed stability, with some vegetables experiencing rises.

Affordable Internet at Rp 100,000 Now Available in 4 Cities, Check the List

MyRepublic has launched its budget-friendly MyRepublic Air internet package offering 100 Mbps speeds on 5G for as low as Rp 100,000 per month, initially available in Bali, Makassar, Lampung, and Pekanbaru. The rollout follows the company's acquisition of 1.4 GHz spectrum and rigorous testing mandated by the Ministry of Communication and Digital Affairs, marking the first such network technology in Indonesia. With pre-registrations exceeding tens of thousands, this initiative aims to expand affordable high-speed internet access across more regions soon.

Komdigi: TikTok Complies with PP Tunas Rules on Age Restriction of 16 Years

Indonesia's Ministry of Communication and Digital (Komdigi) has praised TikTok for complying with the government's PP Tunas policy by restricting access for users under 16 years old, marking it as the first platform to submit a compliance commitment and deactivate 780,000 underage accounts as of 10 April 2026. Minister Meutya Hafid highlighted this as an initial victory for child protection in Indonesia, with TikTok committing to regular updates on implementation. While eight platforms including Facebook, Instagram, and YouTube are in the initial phase, YouTube and Roblox remain non-compliant, facing potential administrative sanctions such as warnings, temporary access blocks, or full disconnection.

Yogyakarta PMI Receives Rp3.3 Billion Medical Equipment Grant to Enhance Services

The Indonesian Red Cross (PMI) in the Special Region of Yogyakarta (DIY) has received a Rp3.3 billion grant for medical equipment from the International Federation of Red Cross and Red Crescent Societies (IFRC), funded by the Japanese government and the Asia-Europe Foundation (ASEF). The equipment, handed over in stages, includes clinical support devices, emergency tools, and basic diagnostic instruments aimed at improving health services and emergency preparedness at PMI facilities. This support underscores international commitment to bolstering Indonesia's public health resilience, particularly in addressing potential community health emergencies, in line with the 2018 Red Cross Law.

Witness and Victim Protection Bill strengthens LPSK's position in the criminal justice system

The Witness and Victim Protection Bill (RUU PSDK) aims to bolster the institutional status of the Witness and Victim Protection Agency (LPSK) by affirming it as a state institution within Indonesia's integrated criminal justice system, updating the 2014 law that previously recognised it only as an independent body. This reform expands LPSK's authority and contributions to accountable law enforcement, focusing on comprehensive protection, rehabilitation, and victim recovery alongside perpetrator punishment, without encroaching on police, prosecution, or judicial roles. Initiated by the DPR, the bill addresses past regulatory limitations, including broader protection scopes and enhanced budgetary support, to ensure optimal safeguarding of witnesses and victims throughout judicial processes.

KPK summons director of PT Bina Muda Adhi Swakarsa as witness

The Corruption Eradication Commission (KPK) has summoned IWP, the director of PT Bina Muda Adhi Swakarsa, as a witness in an ongoing bribery case related to dredging projects at four Indonesian ports. The examination is scheduled at the KPK's Gedung Merah Putih in Jakarta, following the agency's announcement of an investigation into alleged corruption in these projects spanning 2013 to 2017. This case involves nine suspects and highlights persistent issues of graft in public infrastructure works, particularly in maritime development.

Bank BJB Supports Housing Financing for SMEs in West Java

Bank BJB is reinforcing its commitment to enhancing housing finance access for small and medium enterprises (SMEs) in West Java through collaborations with government ministries, the provincial government, PNM, and SMF. The bank is actively involved in disbursing subsidised programmes such as FLPP and KPR, focusing on prudent assessments to ensure both home ownership and business sustainability. This initiative aims to improve societal welfare and economic productivity among SMEs by providing affordable housing solutions.

Education Department Reveals 8,066 Children in Yogyakarta Not Attending School, Here Are the Various Causes

The Yogyakarta Education, Youth, and Sports Department has disclosed that 8,066 children across the region are not attending school, based on verified data from the national dashboard as of 5 April 2026. Key causes include employment (2,067 children), unwillingness to attend (1,170), and a broad 'other' category (3,083), alongside socioeconomic factors like marriage, financial constraints, and health issues. Addressing this requires comprehensive, cross-sector interventions such as scholarships, non-formal education programmes, and collaborations with social services and local governments to promote education and independence.

Beef Prices Begin to Rise Ahead of Idul Adha, Interventions Intensified

Beef prices in Jakarta have started to climb ahead of Idul Adha 2026, rising from around Rp140,000 to Rp150,000 per kilogram due to businesses withholding supply in anticipation of the holiday, prompting Perum Bulog to coordinate with state-owned food enterprises like PT Berdikari to bolster distribution and stabilise prices. The company aims to return prices to the target of Rp140,000 per kilogram through frozen meat supplies to Stabilisation of Food Supply and Price (SP2KP) markets, while other commodities like rice and cooking oil remain stable, though demand for subsidised Minyakita oil has increased due to rising plastic prices affecting bulk oil. Bulog has also requested additional quotas for Minyakita and reported ample national rice stocks of 4.75 million tonnes, underscoring efforts to maintain food price stability during the festive period.

Former Official Says Chromebooks in Nadiem Era Were Designed for Access in Remote Areas

Iwan Syahril, former Director General of Early Childhood, Primary, and Secondary Education at the Ministry of Education, explained that Chromebooks procured during Nadiem Makarim's tenure were specifically designed to function in remote areas with unstable internet, even on 2G or 3G networks. He highlighted inspections in regions like Nusa Tenggara Timur, Maluku, and Papua, and a 2023 census that revealed issues such as lost or damaged devices and duplicate serial numbers, prompting government interventions including direct school support, device repairs via Chrome Device Management, community-based teacher training, and local server solutions. These efforts underscore the government's commitment to maximising educational technology in underserved areas, ensuring equitable access to learning resources.

Jalan Dewi Sartika in East Jakarta Frequently Causes Accidents Due to Subsidence

A section of Jalan Dewi Sartika in East Jakarta has subsided, forming a large pothole that repeatedly causes vehicles, including trucks and minibuses, to swerve or crash, posing significant safety risks near a bend and sidewalk. Local residents have reported hearing loud impacts and witnessing incidents over the past week, with the hole originating from a small crack that widened rapidly. The Jakarta East Road Infrastructure Sub-Department inspected the site on Monday, but no response has been received from the head regarding repairs.

Indonesia Can Buy Oil More Cheaply from Russia

An economist from Universitas Padjadjaran suggests that Indonesia could procure crude oil from Russia at around US$59 per barrel, significantly cheaper than the global Brent price of US$100 amid escalating US-Israel-Iran tensions. Even factoring in 30% logistics costs, the effective price would be US$76.7–80 per barrel, offering 31–51% savings compared to peak world prices of US$116. This opportunity aligns with recent energy cooperation discussions between Presidents Prabowo Subianto and Vladimir Putin, potentially enhancing Indonesia's energy diversification and cost efficiency.

East Kalimantan Residents to Protest at Governor's Office and DPRD

Residents of East Kalimantan, under the Aliansi Perjuangan Masyarakat Kalimantan Timur, plan to demonstrate on 21 April 2026 outside the provincial governor's office and DPRD in Samarinda, criticising Governor Rudy Mas’ud and Deputy Governor Seno Aji for extravagant spending on official vehicles and residence renovations amid economic hardships. The protesters accuse the governor of ignoring President Prabowo Subianto's directive on budget efficiency, highlighting national embarrassment from his actions. Police are preparing proportional security measures to ensure public order during the event involving thousands from various civil society groups.

In Raker, DPR Members Urge Careful Study of "War Ticket" Hajj Proposal

Members of the Indonesian House of Representatives' Commission VIII have called for a cautious examination of the Ministry of Hajj and Umrah's proposed "war ticket" scheme for future Hajj pilgrimages, emphasising that the priority should be accelerating queues for elderly pilgrims, those with high health risks, and others unable to wait long periods. The proposal aims to shorten the average 26.4-year waiting time through transformative governance, but lawmakers stress avoiding delays that could span 30-40 years. The Commission commits to supporting the success of the 2026 Hajj and promoting government preparations in their constituencies.

BMKG: 66 Percent of West Java Regions Surrounded by Earlier and Drier Dry Season

The Indonesian Meteorological, Climatological, and Geophysical Agency (BMKG) in West Java has warned that 66 percent of the province will experience an earlier dry season with much drier conditions than usual, expected to last longer than normal. This phenomenon has already begun in northern areas like Bekasi and Karawang since March, spreading further in April, with a peak in August affecting 90 percent of the region under extreme dry conditions. Only 2 percent of the area, including parts of Bogor and Sukabumi, will have differing seasonal patterns, highlighting potential risks to agriculture and water resources in the province.

Rupiah Hits New All-Time Low, US Dollar Breaks Through Rp17,100

The Indonesian rupiah closed at a new record low of Rp17,110 against the US dollar on Tuesday, depreciating 0.09% and extending its negative trend over four consecutive trading days. Despite a weakening US dollar index amid hopes of de-escalation in the Iran-US conflict, the rupiah failed to strengthen, highlighting domestic vulnerabilities. Bank Indonesia affirmed its commitment to using all monetary policy tools, including measured interventions in spot, NDF, and DNDF markets, to stabilise the currency.

Video: BI Assures Rupiah is Fine, These 3 Indicators Provide Proof

Bank Indonesia officials at the Central Banking Forum 2026 affirmed the rupiah's stability, citing controlled inflation at 3.8%, a robust trade balance, and sufficient foreign exchange reserves as key indicators. The Ministry of Finance highlighted a healthy state budget supporting economic growth with a 10.5% rise in tax receipts, despite increased spending in early 2026, and prudent debt management amid global energy price surges. Experts emphasised the need for long-term reforms, such as developing renewable energy, to mitigate currency pressures from global volatility and maintain investor confidence.

DPR Working Committee Pushes for Swift Passage of Witness and Victim Protection Bill

The Indonesian House of Representatives' Working Committee is urging the immediate passage of the Witness and Victim Protection Bill (RUU PSDK) to strengthen legal safeguards amid evolving judicial systems. Highlighted by committee chair Dewi Asmara, the bill shifts from reactive to proactive protection, mandates absolute restitution for victims backed by state funds, bolsters the Witness and Victim Protection Agency (LPSK), integrates tech-based protections throughout judicial stages, and aligns with the new Criminal Procedure Code. Fraksi Golkar pledges support, emphasising witnesses and victims as key pillars of law enforcement deserving security and rights restoration.

Disagreeing with the US, Saudi Opposes Trump's Efforts to Blockade Iranian Ports

Saudi Arabia is urging the Trump administration to halt the blockade of the Strait of Hormuz and return to negotiations, fearing that blocking Iranian ports could escalate tensions and prompt Iran to close the Bab al-Mandeb strait, threatening key oil export routes. This stance comes amid recent failed US-Iran talks in Islamabad and renewed diplomatic communications between Riyadh and Tehran, highlighting shifting dynamics in the Gulf amid ongoing conflict. The situation underscores how Iran's demonstrated ability to disrupt vital waterways is altering long-term oil and gas strategies for Gulf states, including Saudi Arabia.

Pertamina: Information on Paid LPG Depot Registration is a Hoax

PT Pertamina Patra Niaga has debunked a viral social media video claiming that registration for subsidised 3kg LPG depots and sub-depots incurs fees, labelling it as misleading hoax information. The company emphasised that the 3kg LPG is a government-subsidised product distributed via quotas to ensure it reaches only eligible low-income communities, with registration being entirely free. Pertamina urged the public to verify information through official channels to avoid scams impersonating the company.

Yusril states that elections must safeguard public trust and legitimacy

Minister Yusril Ihza Mahendra emphasised that elections in Indonesia extend beyond mere procedures to preserving public trust and the legitimacy of the state, particularly in a diverse society where they serve as a platform for voicing aspirations and hopes for the nation's future. He highlighted the risks of overemphasising procedural aspects at the expense of substantive justice, transparency, and fairness, warning that without legitimacy, democracy could become fragile and lead to crises of confidence. Yusril called for comprehensive legal reforms, including revisions to the Election Law under the 2026 National Legislation Programme, to enhance democratic quality and address modern challenges.

Central Purbaya Prepares New Tax Refund Regulations, Process Accelerated to Maximum 3 Months

The Indonesian government is finalising a new draft Minister of Finance Regulation (RPMK) to expedite the preliminary tax refund process, setting a maximum of three months for Income Tax (PPh) and one month for Value-Added Tax (PPN) from the date of application receipt. This initiative aims to enhance tax service efficiency and provide legal certainty for taxpayers while maintaining a research-based approval process by tax authorities. The regulation is targeted to take effect on 1 May 2026, revoking prior provisions to improve overall tax administration quality.

Mirae Asset Observes High Enthusiasm Among Retail Investors for IPO Shares

PT Mirae Asset Sekuritas Indonesia has noted significant enthusiasm from domestic retail investors in subscribing to Initial Public Offering (IPO) shares, particularly those with strong fundamentals and solid business prospects. The company's Head of Retail Business Division, Prisa Ngadianto, highlighted that such IPOs are relatively safe for retail investors, contributing to robust order volumes. Mirae Asset, currently serving around 420,000 clients dominated by millennials due to its Rp10 million minimum balance requirement, aims to add 100,000 new clients by the end of 2026 to reach 500,000.

Overseeing Energy Diplomacy, Bahlil Pledges to Safeguard Domestic Supply for National Resilience

Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia has committed to overseeing energy diplomacy to ensure national energy supply stability, particularly during President Prabowo Subianto's working visit to Russia. The focus of the Indonesia-Russia cooperation includes guaranteeing energy supplies, boosting investments in the energy sector, developing oil refineries, strengthening oil trade, and advancing clean energy technologies to support long-term diversification. This strategic partnership aims to bolster Indonesia's energy resilience and economic stability amid global geopolitical dynamics, with both leaders emphasising the importance of enhanced bilateral ties in energy and economy.

RI draws investors fleeing Middle East, minister claims

Indonesia's Investment and Downstream Minister Rosan Roeslani has stated that escalating tensions in the Middle East are driving investors, particularly from the region, to seek safer havens, with increased engagement towards Indonesia due to its political stability. Investment realization is projected at Rp 497 trillion ($29 billion) for the first quarter of 2026, marking a 7 percent year-on-year increase. Additionally, the state asset fund Danantara is exploring aviation partnerships, including potential joint ventures between PT Garuda Indonesia and Gulf carriers like Emirates and Etihad to enhance Haj flight efficiency, as directed by President Prabowo Subianto.

List of Airlines Raising Airfare Prices, Holidays Becoming More Expensive

Global geopolitical conflicts, particularly in the Middle East involving the US, Israel, and Iran, have driven a sharp surge in jet fuel prices to US$197 per barrel, prompting numerous international airlines to increase ticket fares and implement fuel surcharges. Airlines such as AirAsia, Cathay Pacific, Air New Zealand, Air France-KLM, Qantas, and Thai Airways have announced hikes ranging from small surcharges to 15% increases, affecting routes worldwide and making travel, including holidays, significantly more costly. This development underscores the vulnerability of the aviation sector to oil price volatility, potentially impacting global travel demand and economic activity in tourism-dependent regions.

China calls US blockade of Iran ports 'dangerous and irresponsible'

China has condemned the US blockade of Iranian ports as 'dangerous and irresponsible', warning that it exacerbates tensions and undermines a fragile ceasefire agreement following failed peace talks. The blockade, ordered by President Trump, aims to pressure Iran economically and indirectly influence China, Iran's largest oil buyer, amid the closure of the Strait of Hormuz to enemy shipping. President Xi Jinping emphasised respect for Gulf nations' sovereignty during meetings with regional leaders, reaffirming China's commitment to promoting peace.

Pramono Prepares Regulations to Allow Political Parties to Name Halts and Stations

Jakarta Governor Pramono Anung is developing detailed regulations to enable political parties to purchase naming rights for public transport halts and stations, aiming to innovate revenue generation for the city. He emphasised that Jakarta, as a global city, must remain open to such opportunities while prioritising user comfort, safety, and urban aesthetics. This follows successful naming rights sales to private entities, including businesses and a music group, for existing MRT stations and Transjakarta halts.

Xi Jinping Calls for Respect of Middle Eastern Countries' Sovereignty

Chinese President Xi Jinping has urged respect for the sovereignty, security, and territorial integrity of Middle Eastern nations amid escalating tensions following failed US-Iran peace talks in Pakistan. In response to US President Donald Trump's naval blockade of the Strait of Hormuz and Iranian ports over Tehran's nuclear ambitions, Xi emphasised China's commitment to playing a constructive role in promoting dialogue and diplomatic resolutions to prevent renewed conflict. Chinese officials, including Foreign Ministry spokesperson Guo Jiakun, have called for adherence to temporary ceasefires and unobstructed navigation through key waterways to restore peace in the Gulf region.

AMPHURI: Saudi Still Issuing Hajj Mujamalah Visas, While Furoda Are Stopped

The Indonesian Hajj and Umrah Organisers Association (AMPHURI) has clarified that while Saudi Arabia has ceased issuing furoda visas sourced from the royal family, mujamalah visas through official channels remain available, as evidenced by ongoing stamping processes. Both types are legally recognised under Indonesia's Law No. 14 of 2025 on Hajj and Umrah, which mandates non-quota visa holders to travel via special Hajj organisers or report to the minister. This distinction addresses ongoing concerns over illegal Hajj promotions using non-Hajj visas like work or tourist types, which are prohibited by both Indonesian and Saudi authorities.

Mirae Asset Sekuritas to Launch Wealth Management Service in Q3 2026

PT Mirae Asset Sekuritas Indonesia has announced plans to launch a comprehensive wealth management service in early Q3 2026, integrating various investment products into a single ecosystem via its M-STOCK platform to enhance user experience for retail and high-net-worth clients. The initiative aims to expand its retail customer base to 500,000 by the end of 2026, up from 420,000 currently, while leveraging existing operational licences as a broker and investment bank. This strategic move seeks to reposition the firm beyond mere stock transactions, capitalising on the growing demand for wealth management in Indonesia's domestic market.

Dino Patti Djalal suggests Prabowo focus on strengthening ASEAN

Dino Patti Djalal, founder of the Foreign Policy Community of Indonesia, has advised President Prabowo Subianto to prioritise strengthening ties with Southeast Asian nations amid global geopolitical tensions, particularly in light of Prabowo's recent visits to Russia and France. He emphasised that Indonesia, as a middle and regional power, should ensure stability in Southeast Asia regardless of conflicts elsewhere, and position itself as the engine of ASEAN rather than aspiring to be an "Asian tiger." Djalal also urged the government to provide more transparent information about presidential foreign trips to avoid speculation.

Bulog Head Requests Increase in Minyakita Quota to 70,000 KL, Here’s Why

The CEO of Perum Bulog, Ahmad Rizal Ramdhani, has proposed raising the Domestic Market Obligation (DMO) for the affordable cooking oil Minyakita from 35% to 65%, which would boost Bulog's monthly supply from 40,000-45,000 kilolitres to around 60,000-70,000 kilolitres. This increase is driven by Bulog's extensive responsibilities in supplying both commercial markets and government food aid programmes, including a major initiative benefiting 33 million recipients under President Prabowo Subianto. The proposal, coordinated across ministries, aims to maintain proportional distribution among state-owned enterprises while addressing surging domestic needs, with potential export implications left to the Ministry of Trade.

Indonesia's Ministry of Defence Assists US in Searching for World War II Soldiers' Remains

Indonesia's Ministry of Defence has signed a Memorandum of Understanding (MoU) with the US Defense POW/MIA Accounting Agency to aid in the search, recovery, identification, and repatriation of World War II American military personnel remains located in Indonesia. This humanitarian and historical collaboration, signed in Washington D.C., underscores mutual respect for fallen soldiers and strengthens bilateral ties between the two nations, while ensuring all activities comply with Indonesian laws and benefit local communities. The agreement does not grant automatic access to US personnel but requires written approval from the Indonesian government.

Understanding MDCP, the New Defence Agreement Between Indonesia's Defence Minister and the US

Indonesia and the United States have elevated their defence cooperation to a Major Defense Cooperation Partnership (MDCP), signed by Indonesian Defence Minister Sjafrie Sjamsoedin and US Defence Secretary Pete Hegseth on 13 April 2026 in Washington D.C. The agreement encompasses capacity building, next-generation military technology, operational readiness, and personnel exchanges through programmes like IMET to enhance military professionalism and interoperability. Additionally, it includes humanitarian efforts via the Defense POW/MIA Accounting Agency (DPAA) to recover and repatriate remains of US WWII personnel from Indonesia, underscoring the partnership's role in regional stability.

New Investments of Rp497 Trillion Enter Indonesia During January-March 2026

Indonesia is projected to realise Rp497 trillion in new investments in the first quarter of 2026, marking a 6.9% increase from the same period last year. This surge in foreign investor interest is attributed to President Prabowo Subianto's economic diplomacy efforts, including state visits to countries like South Korea and Japan where he engaged transparently with business leaders. These initiatives have bolstered investor confidence in Indonesia's geopolitical stability and economic management.

ESDM Revises Benchmark Prices for Nickel and Bauxite Ore, Effective 15 April 2026

The Ministry of Energy and Mineral Resources (ESDM) has revised the benchmark mineral prices (HPM) for nickel and bauxite ore through Ministerial Decree No. 144 of 2026, effective from 15 April 2026, aiming to optimise state revenues and ensure fairness for stakeholders. Key changes include adjustments to the nickel ore formula by incorporating corrective factors and associated minerals like iron, cobalt, and chromium; reductions in reactive-silica factors for bauxite; and a shift in pricing units from US dollars per dry metric ton to per wet metric ton across various commodities. Mining companies are urged to coordinate with surveyors to provide comprehensive quality data, including moisture content and associated minerals, to comply with the new regulations.

Shanghai Woos Indonesia's SMEs with Cash, Scale and Access

Shanghai is intensifying efforts to attract foreign small and medium enterprises (SMEs), including those from Indonesia, by offering a supportive business environment, advanced infrastructure, financing access, and incubation programmes to facilitate growth and scaling. Officials highlighted that by 2025, the city aims to host around 68,000 foreign SMEs, primarily in agriculture and manufacturing, with last year's loans totalling 410 billion RMB extended to 10,000 companies at reduced rates. This initiative underscores Shanghai's commitment to equal treatment and technological enhancements in services, positioning it as a prime destination for international investment and business expansion.

Video: Capital to Strengthen the Rupiah and Ensure a Healthy State Budget Amid Iran War Turmoil

At the Central Banking Forum 2026 hosted by CNBC Indonesia and Bank Indonesia, experts discussed strategies to bolster Indonesia's economic resilience against global exchange rate volatility, particularly amid the 2026 US-Iran war. Bank Indonesia's Erwin Gunawan Hutapea highlighted the Rupiah's stable position, supported by controlled inflation at 3.8%, a robust trade balance, and sufficient foreign reserves, while the Ministry of Finance's Noor Faisal Achmad affirmed the state budget's health, with tax receipts growing 10.5% despite rising expenditures. Economists like BCA's David Sumual and CORE's Mohammad Faisal emphasised addressing short-term capital outflows due to oil prices and long-term reforms such as renewable energy development, while safeguarding middle-class purchasing power and fiscal governance to maintain investor confidence.

Expert: Indonesia Has Opportunity to Buy Russian Oil at US$59 per Barrel

An energy expert from Padjadjaran University, Yayan Satyakti, suggests Indonesia could purchase Russian oil at US$59 per barrel, significantly cheaper than the global price hovering around US$100 per barrel amid the US-Israel-Iran conflict. Even with added logistics costs, the price would remain 31-51% lower than peak global rates, potentially enhanced by successful diplomacy between Presidents Prabowo and Putin. This opportunity arises from Western sanctions on Russia since 2022, which have depressed Russian oil prices.

Japan Triples Tax on Foreign Tourists Starting July 2026

Japan's government has decided to triple the international tourist tax from 1,000 yen to 3,000 yen per person effective 1 July 2026, aiming to balance tourism growth with residents' quality of life amid rising overtourism concerns. In a related move, the city of Fujiyoshida cancelled a popular cherry blossom festival due to overcrowding issues affecting locals. Additionally, Japan is developing the Japan Electronic System for Travel Authorization (JESTA), a pre-arrival screening process for foreign visitors, though details remain under discussion.

Bekasi Regency Closes Illegal Waste Site in Sriamur, North Tambun, Amid Resident Concerns

The Bekasi Regency Government has temporarily shut down an illegal waste disposal site in Sriamur Village, North Tambun District, in response to community complaints about health risks from poor air quality and foul odours after years of operation. Acting Regent Asep Surya Atmaja instructed the Environment Agency to remove the accumulated waste and emphasised the need for any future waste management initiatives to comply with legal requirements and avoid environmental pollution. This action addresses the ongoing waste emergency in Bekasi, with calls for collaborative solutions including partnerships with private entities and waste-to-energy programmes.

Chinese Scientists Discover New Way to Strengthen Rice Against Deadly Disease

Chinese scientists have identified a key gene, Xa48, that enables rice plants to combat bacterial blight, a disease exacerbated by warmer temperatures and reduced crop diversity in Asia. By combining Xa48 with the existing Xa21 gene, researchers have developed a robust dual-layer defence system that provides broad, long-lasting protection without hindering plant growth. This breakthrough, already implemented in China's rice breeding programmes, promises healthier yields and reduced reliance on chemical pesticides amid rising climate challenges.