Indonesian Political, Business & Finance News

Archive: 12 May 2026

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Japan Offers Mogami Frigate and Submarine, Ministry of Defence: No Procurement Yet, Still in Talks

Indonesia's Ministry of Defence has clarified that no official procurement of major defence equipment from Japan has been decided, despite offers for the Mogami frigate and a submarine from Japan's defence ministry. Discussions remain at the exploratory stage, with comprehensive evaluations planned on operational needs, budget capabilities, technology transfer, and national interests. The Indonesian Navy is following the ministry's lead, as procurement falls under its authority while the navy focuses on operational execution.

Gerindra's Statement on MPR Quiz Jury: They Should Apologise to Ocha

Gerindra faction leader in the MPR, Habiburokhman, has praised high school student Ocha for her courage in protesting a jury's decision during an MPR quiz competition, where her team's correct answer on the State Audit Agency selection process was unfairly marked negative while another team's similar response scored positively. He criticised the jury and hosts for their anti-critical stance and urged them to apologise to Ocha, calling for the replacement of the jury and a temporary halt to the event until improvements are ensured. This incident highlights concerns over fairness in educational events organised by Indonesia's legislative body, prompting public attention and a response from the MPR's secretary general respecting societal input.

WIKA Overhauls Management, Appoints I Ketut Pasek Senjaya Putra as President Director

PT Wijaya Karya (Persero) Tbk., a state-owned enterprise, has restructured its management following the Annual General Meeting of Shareholders, appointing I Ketut Pasek Senjaya Putra as the new President Director, replacing Agung Budi Waskito. Key changes include Mulyadi taking over as Finance Director and Vera Kirana as Director of Risk Management and Legal, alongside updates to the Board of Commissioners with Apri Artoto as Chairman. This leadership shake-up signals a strategic refresh for the construction firm amid Indonesia's ongoing infrastructure developments.

Gibran Praises Pramono for Expanding TransJakarta Routes and Making It Free for 15 Groups

Vice President Gibran Rakabuming Raka has commended Jakarta Governor Pramono Anung for his commitment to advancing public transportation, including expanding TransJakarta services to agglomeration areas and waiving fares for 15 groups such as the elderly and disabled. During a visit to the MRT Phase 2A project in central Jakarta, Gibran highlighted the 59% construction progress, set for completion by the end of 2027, and praised the involvement of 3,800 local workers. He linked these innovations to President Prabowo Subianto's vision for modern, safe, and integrated public transport to encourage greater usage among the public.

Military Auditor Visits RSCM but Cancels Meeting with Andrie Yunus Who is Still Recovering

A military auditor visited Cipto Mangunkusumo Hospital in central Jakarta to check on Andrie Yunus, the deputy coordinator of KontraS who was the victim of an acid attack by four TNI members, but was unable to meet him due to his ongoing recovery from surgery. The visit was intended as a humanitarian gesture amid the ongoing military trial of the suspects, who allegedly acted out of resentment after Yunus interrupted a parliamentary meeting on revising the TNI Law. This incident underscores tensions surrounding military institutions and civil society activism in Indonesia.

KPK Summons PAN Deputy DPD Rejang Lebong Regarding Bribery Case Involving Regent Fikri

Indonesia's Corruption Eradication Commission (KPK) has summoned Daditama, the Deputy Chair of the PAN Regional Leadership Council in Rejang Lebong, as a witness in an ongoing bribery investigation related to advance payments for public works projects in Bengkulu province. The case involves Regent Muhammad Fikri Thobari, who allegedly received a total of Rp 1.7 billion in bribes from private entities for projects worth Rp 91.13 billion under the local Public Works Department. This scandal highlights persistent corruption issues in regional government infrastructure procurement, with five suspects already named, including the regent and department head.

BSI Relies on Gold Business and Hajj Services Amid Rupiah Weakness

Bank Syariah Indonesia (BSI) remains optimistic despite global economic pressures and a weakening rupiah, with its gold business and Hajj services serving as primary supports for sharia financing growth this year. The bank's performance up to February 2026 shows solid growth, with positive financial ratios exceeding industry averages, bolstered by strong intermediation, increased low-cost funds, and quality financing expansion. BSI continues to focus on resilient sectors like gold ecosystems and Hajj support, where it handles about 83% of Indonesian Hajj pilgrims, while also providing financing for SMEs, sharia KUR, and subsidised housing loans.

Korpagama Clinic's Elderly School Strengthens Prolanis Programme to Enhance Elderly Quality of Life

The Korpagama Clinic's Elderly School programme, integrated with BPJS Kesehatan's Prolanis initiative for chronic disease management, focuses on educating and empowering elderly participants through monthly expert sessions, biannual outings, and social interactions to maintain physical fitness and prevent dementia. With 27 active members limited by facility constraints, future expansions include larger classes and YouTube streaming to broaden access, alongside integrated health services like consultations, medications, and exercise classes supported by BPJS Kesehatan. The programme's success is exemplified by participant Suryono Hadi's recovery from lung issues through regular BPJS-covered check-ups, highlighting its potential for long-term independence and healthier ageing among the elderly.

Latest Condition of Andrie Yunus After Being Splashed with Caustic Liquid, Right Eyelid Still Covered

Two months after activist Andrie Yunus from KontraS was attacked with caustic liquid in central Jakarta, his right eyelid remains temporarily covered as part of ongoing treatment, though ultrasound results confirm his eyeball is intact with no severe nerve or posterior damage. Evaluations show no psychological issues, and he is adapting well to his physical condition while receiving multidisciplinary care including reconstructive surgery and skin grafts. This incident highlights the risks faced by human rights advocates in Indonesia, underscoring the need for enhanced protection amid legal and social justice efforts.

DPR Leader Cucun: Boundaries Essential for Independent Media

DPR leader Cucun emphasised the need for boundaries on independent media practitioners, insisting they adhere to journalistic ethics and verification standards to prevent them from becoming tools for buzzers or political agendas. He welcomed the openness and creativity of these media outlets but stressed compliance with national codes of conduct. This comes amid discussions between the Government Communication Agency and the Indonesia New Media Forum on improving standards for new media, including requirements for company registration, addresses, and responsible parties.

Indonesia and Japan Strengthen Environmental Cooperation

Indonesia and Japan are enhancing their bilateral environmental cooperation through the 2nd Indonesia-Japan Environment Week, following the inaugural event in Tokyo last year. The forum facilitates knowledge exchange, capacity building, and development of green technologies, focusing on waste management, climate control, air quality improvement, and circular economy initiatives. This partnership leverages Japan's expertise and Indonesia's needs to drive sustainable environmental management and support green economic growth.

10 Bangladeshi Nationals in Buleleng Kidnapping Case Entered Indonesia Illegally

A kidnapping and fraud case in Buleleng, Bali, involving 10 Bangladeshi nationals—five victims and five perpetrators—has revealed that all entered Indonesia illegally via unofficial routes, highlighting vulnerabilities in the country's border security. The incident, which promised illegal migration to Australia, led to the deportation of four victims and ongoing legal proceedings against the suspects under Indonesia's Criminal Code. Authorities emphasise the need for multi-agency collaboration to combat international smuggling syndicates exploiting Indonesia's archipelago borders.

KPK Summons Pekalongan Regent Fadia Arafiq's Aide in Corruption Case

The Corruption Eradication Commission (KPK) has summoned an aide to Pekalongan Regent Fadia Arafiq as a witness in a corruption case involving conflicts of interest in procurement processes within the Pekalongan Regency administration. The investigation is probing the flow of corrupt funds received by Fadia, who has been named a suspect and detained, with her family-linked company securing Rp 46 billion in outsourcing contracts from 2023 to 2026, portions of which were distributed among family members and associates. This case underscores ongoing efforts to combat graft in local government procurement, highlighting the misuse of public office for personal gain.

Vice President Gibran Appreciates 3,800 Workers on MRT Phase 2A Project: Working Day and Night, Thank You

Vice President Gibran Rakabuming Raka has expressed appreciation for the 3,800 workers involved in the MRT Phase 2A North-South Line project in Jakarta, commending their round-the-clock efforts that have brought progress to 59 percent. During his inspection at the Harmoni site, accompanied by Jakarta Governor Pramono Anung, Transport Minister Dudy Purwagandhi, and MRT Jakarta's Director Tuhiyat, Gibran highlighted the collaborative synergy between central and regional governments essential for realising safe, comfortable, and integrated public transportation. The project is targeted to connect and operationalise the Bundaran HI-Monas route by the end of 2027, with full extension to Kota station by late 2029.

Jakarta's 'Ghost Offices' Phenomenon: How Are Things Now?

Jakarta's office market, which suffered from high vacancy rates and the 'ghost offices' phenomenon over the past decade due to oversupply, is showing signs of recovery in the first quarter of 2026. Supported by limited new supply until 2028 and a doubling of leasing demand in the central business district to 21,000 square metres, occupancy is improving across Grade A, B, and C buildings. Areas outside the CBD, such as TB Simatupang, are also experiencing renewed interest, potentially positioning them as cost-effective alternatives amid the rebound.

Rupiah Hits Rp17,503 per US Dollar Amid Tensions in the Strait of Hormuz

The Indonesian rupiah weakened to Rp17,503 per US dollar on Tuesday, driven by escalating tensions in the Strait of Hormuz despite a robust 5.61% economic growth in the first quarter of 2026. Analyst Ibrahim Assuaibi highlighted the impact of Middle East conflicts on rising oil prices and a strengthening US dollar index, compounded by domestic issues such as 40,000 layoffs in labour-intensive sectors and a large informal workforce. He predicts further rupiah depreciation but not beyond Rp17,550 per dollar.

Video: Strategies to Advance Authentic Indonesian Herbal Medicines Towards Global Competitiveness

Dexa Group, a leading pharmaceutical company, is advancing research into Fitofarmaka products and Original Indonesian Modern Medicines (OMAI) derived from natural ingredients proven for safety and efficacy. Amid a global herbal medicine market valued at USD 500 billion dominated by China and India, Indonesia—with the world's second-largest biodiversity after Brazil—currently captures only USD 5 billion, presenting significant opportunities for expansion. Key challenges include integrating herbal products into the national health system and strengthening supply chains to make them accessible via clinics, hospitals, and BPJS Kesehatan, as discussed by Dexa Group's Director of Research and Business Development, Raymond Tjandrawinata.

Video: Promoting Herbal Medicines, Producers Request Phytopharmaca Inclusion in BPJS

Dexa Group, a leading pharmaceutical company, is advancing research on phytopharmaca and Original Indonesian Modern Medicines (OMAI) derived from natural ingredients proven safe and effective, amid a global trend towards 'back to nature' remedies. With the herbal medicine market valued at USD 500 billion and dominated by China and India, Indonesia—boasting the world's second-highest biodiversity after Brazil—currently captures only USD 5 billion, presenting significant untapped potential. Producers call for integrating phytopharmaca into the national health system, including BPJS Kesehatan coverage, to strengthen supply chains, encourage doctor prescriptions, and enable Indonesia to compete in the global pharmaceutical industry.

Police Chief Inaugurates Laboratory to Test Quality of Police Uniforms

Indonesian Police Chief General Listyo Sigit Prabowo has inaugurated a new laboratory for the Police Logistics Staff to test the quality of police equipment, including uniforms, ensuring they meet established standards. During the event, he also inspected new protective gear for personnel facing potential riots and conflicts, such as defence against arrow attacks, and distributed around 430 operational vehicles ranging from electric patrol cars to flood-affected area vehicles. This initiative, including the development of a Minimal Essential Police Equipment (MEPE) concept tailored to regional needs, aims to enhance police confidence and public safety services.

To Realise Kamseltibcarlantas, Korlantas Chief Emphasises Digitalisation and Professionalism Among Ranks

Irjen Agus, the Chief of Korlantas Polri, has urged personnel to concretely implement the Kapolri's five major agendas, focusing on creating safe, secure, orderly, and smooth traffic through programmes like 'Polantas Menyapa dan Melayani'. He emphasised advancing digitalisation in services, including revitalising the Indonesia Safety Driving Centre, developing Smart City concepts, and strengthening tech-based law enforcement such as ETLE and face recognition, while promoting humanistic approaches via collaborations with communities and stakeholders. Additionally, Agus called for optimising traffic safety education during the annual September commemoration and appreciating outstanding personnel to enhance public trust and road safety awareness.

Trump Wants to Make Venezuela the 51st US State, This is What Its President Says

US President Donald Trump has expressed serious interest in annexing Venezuela as the 51st state following the arrest of its former leader Nicolas Maduro, prompting a firm rejection from interim President Delcy Rodriguez. Rodriguez emphasised Venezuela's deep commitment to its independence and heroes, while pursuing diplomatic cooperation with the US under Trump's demands for access to its vast fossil fuel reserves. Under her leadership, reforms have opened the mining and oil sectors to foreign companies, particularly American ones, and led to the release of hundreds of political prisoners, though challenges remain.

Royalty Increase Postponed: How Will the Mining Profit-Sharing Scheme Resemble That of Oil and Gas?

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has decided to postpone the planned increase in mineral royalty rates for commodities such as copper, gold, silver, nickel, and tin following public input from businesses. This delay aims to develop a mutually beneficial formulation that profits both the state and industry players. Meanwhile, the government is exploring a profit-sharing model for mining operations similar to the oil and gas sector, grounded in Article 33 of the 1945 Constitution, which mandates state control of natural resources for public prosperity.

DPR Speaker: Indonesia Must Not Become a Stopover for Online Gambling

DPR Speaker Puan Maharani has urged the government to strengthen measures and anticipatory actions to prevent Indonesia from becoming a hub or primary location for international online gambling syndicates. This call comes in response to a recent police operation by Bareskrim Polri, which arrested 321 foreign nationals involved in an international online gambling network in Jakarta's Hayam Wuruk area. The emphasis is on curbing the spread of such illegal activities to safeguard national interests.

Police Prepare Arrow-Resistant Uniforms for Officers in Conflict Areas

Indonesian National Police Chief General Listyo Sigit Prabowo has announced the introduction of new protective gear, including arrow-resistant uniforms, for officers deployed in conflict-prone regions where arrow attacks are common. Demonstrated during a logistics coordination meeting, this equipment also safeguards against threats like Molotov cocktails and gunfire, aiming to boost officers' confidence in performing security and public service duties. The gear undergoes rigorous quality testing in a dedicated laboratory to meet police standards, enhancing personnel safety amid field challenges.

MRT Phase 2A Construction from Bundaran HI to Kota Tua Reaches 59.7% Completion

Jakarta Governor Pramono Anung Wibowo announced that the MRT Jakarta Phase 2A project, connecting Bundaran HI to Kota Tua, has progressed to 59.7% completion following a site inspection with Vice President Gibran Rakabuming Raka. The project is targeted for commissioning in mid-2027, with operations to Harmoni by the end of 2027 and full extension to Kota Tua by late 2029, while the East-West MRT line's first segment is expected by 2030. Pramono highlighted the challenging deep excavations at Sawah Besar and Mangga Besar stations and praised the 3,800 Indonesian workers involved for their outstanding contributions.

Bali Governor Shares Tourism Strategies with the Philippines

Bali Governor Wayan Koster met with Siquijor Governor Jake Vincent Sarmiento Villa to share strategies for developing tourism based on Bali's cultural heritage, natural beauty, and community hospitality. Koster highlighted ongoing commitments to environmental preservation, including waste management policies, as essential for sustaining Bali's appeal as a global destination. The exchange aims to foster cooperation in tourism, culture, and human resource development between the two regions.

Puan Maharani: Indonesia Must Not Become the Main Base for International Online Gambling Syndicates

Indonesia's House of Representatives Speaker Puan Maharani has urged the government and law enforcement to take firm action to prevent the country from becoming a hub for international online gambling operations following a raid in West Jakarta that uncovered activities involving hundreds of foreign nationals. The operation exposed an organised network linked to 75 gambling websites, highlighting the need for ongoing anticipation measures, strengthened inter-agency coordination, and comprehensive oversight of finance, immigration, and cyberspace to combat this evolving digital crime that also risks money laundering and fraud. This development underscores Indonesia's commitment to safeguarding its sovereignty against transnational criminal activities.

Rising Diesel Prices: Driving Style Becomes Key to Making Diesel Cars More Fuel-Efficient

Rising diesel fuel prices in Indonesia are expected to increase operational costs for owners of modern diesel vehicles, which are sensitive to poor-quality fuel. According to Jasin Stefanus of Provis Autolab, adopting a gentle driving style that leverages the high low-end torque of these engines—such as avoiding deep accelerator presses and maintaining low RPMs—can significantly improve fuel efficiency, particularly in urban settings. This advice highlights the importance of driver habits in mitigating the financial impact of escalating fuel costs on diesel car users.

KPK Investigates Allegations that Pekalongan Regent Fadia Arafiq Received Money from Several Parties

The Corruption Eradication Commission (KPK) is probing claims that inactive Pekalongan Regent Fadia Arafiq received funds from various parties, as revealed during the examination of witness Ryan Savero, a private entrepreneur. Fadia was named a suspect in a corruption case involving the procurement of goods and outsourcing services in Pekalongan Regency, where her success team members were employed by PT RNB, which secured contracts worth Rp46 billion from 2023 to 2026, with approximately Rp19 billion allegedly benefiting her family. This investigation underscores ongoing efforts to combat corruption in local government procurement processes, highlighting the risks of cronyism in public contracts.

MPR Apologises Over Quiz Competition Controversy, Jury and Host Deactivated

The People's Consultative Assembly (MPR) has issued an apology for the controversy surrounding the 2026 Four Pillars Quiz Competition at the West Kalimantan provincial level, where inconsistent judging led to public outcry on social media. In response, the MPR has deactivated the jury and host involved, while committing to a comprehensive evaluation of the event's technical aspects to ensure greater transparency and fairness in future iterations. This incident underscores the MPR's emphasis on upholding sportivity, objectivity, and public trust in its educational initiatives aimed at fostering national values among the youth.

Police Chief Attends 2026 National Police Logistics Coordination Meeting, Inaugurates Lab and Distributes 430 Patrol Vehicles

Indonesian Police Chief General Listyo Sigit Prabowo inaugurated the 'Slog Lab' textile and leather products laboratory during the 2026 National Police Logistics Coordination Meeting in Jakarta, aimed at ensuring high-quality uniforms and equipment for personnel. He also inspected advanced facilities like anti-arrow vests designed for conflict zones and symbolically distributed 430 operational vehicles, including electric patrol cars and flood response units, to various regions including Papua. These initiatives are part of modernising police logistics to enhance operational efficiency, safety, and public service in maintaining security and law enforcement.

Dudung Receives Report from BGN: Many Disparities in MBG Programme

Head of the Presidential Staff Office, Dudung Abdurachman, has received reports from a deputy head of the National Nutrition Agency (BGN) highlighting significant disparities in the Free Nutritious Meals (MBG) programme, including the suspension of over a thousand MBG kitchens. During surprise inspections at two SPPG facilities in West Jakarta, Dudung identified serious issues with cleanliness, kitchen management, and food safety standards, emphasising the need for immediate evaluations and corrections to prevent risks such as food poisoning among children. He warned that non-compliant kitchens must be fixed promptly or face closure, underscoring the government's commitment to ensuring the programme's success under the President's directive.

Report: UAE Secretly Joins Attack on Iran

According to a Wall Street Journal report, the United Arab Emirates has secretly launched a military strike on Iran's Lavan Island oil refinery in the Persian Gulf, escalating the ongoing Israel-US conflict in the region. The attack, which caused a major fire and crippled the facility's capacity for months, prompted Iran to retaliate with missile and drone strikes on the UAE and Kuwait. This development marks a significant involvement by Abu Dhabi amid a US-declared ceasefire following a five-week air campaign.

Shopee prepares special vouchers for shops with 100% local products

Shopee is launching a special voucher programme to support shops selling exclusively local products, aiming to boost consumer interest and sustainable growth for local businesses. The initiative, dubbed Voucher Akselerasi Usaha Lokal, will distribute Rp100 billion in vouchers from January to May 2026, with internal data showing up to 40% income increases for local sellers and over twofold sales surges during Local Shopping Days. This move underscores Shopee's commitment to enhancing e-commerce opportunities for Indonesian SMEs and promoting domestic products.

Purbaya Strictly Prohibits Tax Officials from Accepting Favours or Providing Special Treatment

Finance Minister Purbaya Yudhi Sadewa has sworn in eight new Echelon II and III officials at the Directorate General of Taxes (DJP), emphasising the importance of maintaining integrity by avoiding favours, special treatments, or unaccountable practices. He stressed that all actions must be justifiable and transparent to protect both officials and the institution, ultimately safeguarding public trust in tax administration. This appointment aims to strengthen the DJP's role in implementing fiscal policies while representing the nation's interests responsibly.

Build a Website Automatically with AI Without Needing to Code

Indonesia's internet penetration is projected to reach 80% by 2025, making an online presence essential for SMEs, freelancers, and startups, yet many face barriers in website creation due to high costs and technical demands. AI website builders are revolutionising this process by enabling users without coding skills to generate professional, responsive sites quickly and affordably through intuitive interfaces. Providers like Rumahweb are democratising digital access, helping businesses build trust and capture sales opportunities in a mobile-dominated market.

Morowali Customs Seize 36,000 Illegal Cigarette Sticks in PT IMIP Industrial Area

Indonesia's Morowali Customs, in collaboration with local security, confiscated over 36,000 illegal cigarette sticks from retail shops in the PT Indonesia Morowali Industrial Park, valued at Rp 105 million, with an estimated state loss of Rp 66 million in unpaid excise duties. Administrative fines totalling Rp 150 million were imposed on the traders involved. The operation underscores the agency's commitment to curbing illegal goods circulation, protecting state revenue, and fostering a fair business environment in industrial zones.

Purbaya Admits Not Yet Receiving BPKP Tax Refund Audit Results

Finance Minister Purbaya Yudhi Sadewa has revealed that he has not yet received the audit results on tax refunds from the Financial and Development Supervisory Agency (BPKP), which he requested several months ago covering the period from 2016 to 2025. This follows an internal investigation prompted by a 35.9% surge in 2025 tax refunds to Rp 361.15 trillion, with concerns raised over discrepancies in calculations, particularly in the coal industry where the government covered Rp 25 trillion in VAT refunds. Purbaya emphasised the need for more accurate and measured refund processes to prevent data manipulation, vowing to take action against any involved parties.

House of Representatives: Fiscal discipline and social protection must be current priorities

Indonesian House of Representatives Speaker Puan Maharani has urged the government to prioritise fiscal discipline, sustainable development, and social protection amid global pressures from geopolitical and geo-economic conflicts in the Middle East, particularly affecting the Strait of Hormuz. She highlighted the transmission of these tensions to Indonesia's economy through rupiah depreciation, rising energy and fuel prices, increased logistics costs, and supply chain disruptions, which could trigger inflation and reduce consumer purchasing power. The DPR supports government efforts to maintain national economic stability, energy resilience, mitigate foreign capital outflows, control essential goods prices, and protect vulnerable communities.

Hyundai Prepares Ioniq V as Global Export Product from China

Hyundai Motor has launched the Ioniq V electric vehicle as a strategic model for the Chinese market, but with plans to position it as a new export weapon targeting high-growth electrification regions worldwide. The company identifies key export markets including Asia-Pacific and Australia, Southeast Asia, the Middle East, and Central and South America, leveraging regional strengths like infrastructure and consumer preferences. This move marks a significant step in Hyundai's transformation in China, emphasising deeper component localisation and technological innovation to maintain competitiveness in the world's largest automotive market.

5 Secrets to Make Your Business Resilient Against Cyber Attacks

Cybersecurity expert Charles Halim has shared five practical pillars for business owners to proactively build cyber resilience amid digital transformation, preventing attacks before they occur. These pillars—Identify, Protect, Detect, Response, and Recover—focus on securing critical assets, training staff, monitoring systems, and structured incident handling, as outlined in a recent Indosat Ooredoo Hutchison report. Implementing these strategies ensures optimal cyber defence, reducing response times and minimising potential damage in an increasingly vulnerable digital landscape.

On the Discussion of the Election Law Revision, Puan Maharani: All Parties Have Already Held Talks

House of Representatives Speaker Puan Maharani stated that discussions on revising the Election Law (RUU Pemilu) among political parties have been ongoing through both informal and formal channels since previous sessions. She emphasised the commitment to ensuring the upcoming elections are fair, beneficial to the nation, and prioritise public interests without causing harm to citizens. As the parliamentary session resumes, further deliberations will continue to focus on the best outcomes for the people.

Puan: Indonesia Faces Pressure on the Rupiah Exchange Rate

Indonesian House of Representatives Speaker Puan Maharani highlighted the weakening rupiah exchange rate during a plenary session, attributing it to escalating conflicts in the Middle East, particularly the closure of the strategic Strait of Hormuz, which disrupts global energy trade. She warned that this situation is driving up energy prices, logistics costs, and import prices, potentially sparking inflation, reducing consumer purchasing power, and increasing burdens on businesses, especially in industry, transportation, and SMEs. The rupiah weakened to Rp17,513 per USD on 12 May 2026, amid broader global economic uncertainties.

Not All Get Friday WFH: One Policy, Different Fates for Civil Servants

The Indonesian government's policy allowing civil servants to work from home every Friday to save energy does not apply uniformly, with essential service providers like population administration staff required to remain in the office to ensure public access. While some employees express discomfort due to the lack of air conditioning, others view it positively for reducing traffic congestion and appreciate the equitable distribution of tasks among colleagues. This variation highlights the balance between energy conservation goals and uninterrupted public services in the civil service.

Paradox of a Budget-Rich State and a People Entrapped by Online Loans

Indonesia's households are increasingly relying on online loans (pinjol) and paylater services to meet basic needs, with outstanding digital debt surging to Rp125.64 trillion by January 2026, reflecting a fragile financial resilience amid stagnant savings and rising non-performing loans. This boom, far outpacing formal bank credit growth, highlights a structural issue where high-interest debt funds consumption rather than productive investments, perpetuating a cycle of debt rotation that masks deeper economic vulnerabilities for the populace despite national budget abundance.

US-Iran War "Takes Its Toll" on America Itself

The US-Iran conflict in the Middle East is causing surging fuel prices at home, prompting President Trump's administration to release oil from the Strategic Petroleum Reserve (SPR) and lend crude to energy firms as part of a global agreement to stabilise markets. With average US petrol prices hitting $4.52 per gallon—the highest since 2022—following Iran's closure of the Strait of Hormuz, the International Energy Agency warns of the modern era's largest energy crisis. This escalation poses political risks for Trump ahead of midterm elections, as repeated SPR drawdowns could weaken America's long-term crisis response and heighten market volatility.

Indonesia Presents Forest and Land Fire Control Strategy at UN Forum

Indonesia's government reported significant success in controlling forest and land fires (karhutla) at the 21st United Nations Forum on Forests (UNFF21) in New York, highlighting an 86 percent reduction in affected areas over the past decade through integrated prevention, early warnings, law enforcement, and community involvement. Forestry Minister Raja Juli Antoni emphasised the ongoing downward trend in fire incidents for 2024-2025, attributed to enhanced hotspot monitoring and rapid response teams. However, he warned of heightened risks in 2026 due to a potential prolonged dry season from a low-to-moderate El Niño, urging increased vigilance and collaboration among stakeholders to sustain these achievements and protect forest ecosystems and air quality.

Soekarno-Hatta Airport monitors travellers from four countries over hantavirus

Indonesia's Soekarno-Hatta International Airport has intensified health surveillance on passengers arriving from the United States, Argentina, Uruguay, and Panama in response to World Health Organization reports of hantavirus fatalities among cruise ship passengers from these countries. Measures include mandatory health declarations via the Satu Sehat app, thermal scanning, visual symptom checks, and availability of specialised ambulances for infectious diseases. Authorities emphasise the importance of health protocols to prevent transmission through rodent-contaminated sources, highlighting Indonesia's proactive public health stance amid global risks.

Minister Asks Police to Take Action Against Inmates Involved in Love Scamming: Including Our Employees!

The Minister of Immigration and Corrections, Agus Andrianto, has urged a thorough investigation and firm action against anyone involved in a love scamming syndicate operating from Kotabumi Class IIB Detention Centre, including any implicated staff. Police in Lampung have examined over 150 individuals, with 137 suspects identified among the inmates, who played various roles in the scam targeting victims through fake romantic relationships. The ministry commits to internal probes before handing over any guilty employees to police for criminal prosecution, highlighting efforts to curb criminal activities within correctional facilities.

Achieving Milestones, Pegadaian Secures 'Best of the Best' Award

PT Pegadaian, a state-owned enterprise, has won multiple accolades at the 2026 BUMN Entrepreneurial Marketing Awards, including the top 'Best of the Best' honour, recognising its innovative marketing strategies and adaptability amid industry disruptions. The awards highlight Pegadaian's excellence in key marketing elements, tech-marketing through its Tring! app, and entrepreneurial spirit, all while prioritising customer needs and financial inclusion via gold-based services. This achievement underscores Pegadaian's commitment to digital transformation and inclusive services, enhancing its relevance across generations in Indonesia's financial landscape.