Indonesian Political, Business & Finance News

Archive: 20 May 2026

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Indonesia sees Xi–Trump meeting bringing a positive atmosphere to APEC

Indonesia's Foreign Ministry says the Xi–Trump meeting creates a more constructive climate ahead of APEC 2026 SOM in Shanghai, with both US and Chinese delegations welcoming the high-level gains. Indonesia emphasises maintaining an open multilateral trading system while safeguarding national interests, amid ongoing differences within APEC. China highlights openness, innovation, cooperation, and connectivity as shared goals for sustainable economic development.

Seven in ten Indonesians feel more positive after taking a 10-second JEDA pause

Blibli, with support from government ministries and industry bodies, launched a social experiment introducing JEDA (Don't React, Evaluate, Double-check, Decide calmly) from 19 February to 31 March 2026, involving more than 158,000 Indonesians. The study found that seven in ten participants felt calmer after a 10-second JEDA pause, suggesting micro-pauses can reduce impulsive responses and improve decision-making amid rising online scams and dense information flows. The initiative aims to bolster consumer protection and digital literacy and calls for ongoing collaborative efforts among stakeholders to empower consumers online and offline.

Finance Minister confident that the rupiah will strengthen as foreign funds flow into Indonesia's government bond market

Finance Minister Purbaya Yudhi Sadewa said the rupiah could strengthen as foreign capital flows into Indonesia's government bond market resume. The government has begun bond purchases in the secondary market to support market stability, with foreign inflows reported at about Rp500 billion in the secondary market and Rp1.68 trillion in the primary market. He also stated that the rupiah and global oil price assumptions in the 2026 APBN will be kept unchanged, arguing that prudent measures are sufficient for the current situation.

Elderly Person Found Dead with Multiple Injuries at Bandung Luxury Home

An elderly person, identified by initials JNG (79), was found dead with multiple injuries at a Bandung residence; police say the victim was assaulted and a family member is being investigated. A witness reported seeing the assault and authorities are pursuing the suspect who is in custody for questioning.

Indonesia monitors 9 nationals after Israel intercepts Gaza flotilla

Indonesia says it is monitoring nine nationals affected by the Gaza flotilla interception by Israeli forces, with five reportedly detained and four others aboard a separate vessel near Cyprus. The government says the Foreign Ministry is coordinating with Indonesian embassies in Turkey, Egypt, Italy and Jordan to issue emergency passports and ensure transit access and unhindered repatriation. Jakarta has also joined a joint statement with ten countries condemning the Israeli attack on the Gaza flotilla as the situation remains dynamic.

Indonesia's Digital Economy 2026: Focus on Efficiency and AI Technology Integration

Indonesia's digital economy is shifting toward efficiency and AI-driven automation as startups recalibrate in a tougher Southeast Asian market. Investment rose to about US$5.96 billion, with Indonesia securing around 42% of Southeast Asia's venture capital, and forecasts project growth to US$146 billion by 2025. Beyond funding, the ecosystem is supported by infrastructure development and accelerator programmes designed to sustain long-term profitability.

Muhammadiyah Leader: War Is Hard to Stop Because the Perpetrator Is a Superpower

Haedar Nashir, head of Muhammadiyah’s central leadership, says peace efforts stall because the leading powers with veto rights in the United Nations dominate global affairs. He calls on the United Nations to act and condemns violence, including the Israeli Navy’s detention of three Indonesian journalists and activists taking part in a Gaza humanitarian mission.

Cultural Procession Milangkala Tatar Sunda Held in Bandung, Dedi Mulyadi Cheered by Locals

Residents gathered along Bandung’s streets to witness the Milangkala Tatar Sunda cultural procession led by West Java Governor Dedi Mulyadi on a white horse. The procession began at Kiara Artha Park and culminated with a red-carpet welcome at Gedung Sate, where the crown Mahkota Binokasih Sanghyang Pake was included. The main celebrations are set for Sunday 17 May 2026 in the Gedung Sate area, featuring performances and other arts.

Hasanuddin University Responds to Voice Note Sent by Female Student Before Her Death

A Hasanuddin University student identified as PJT sent a voice note to friends and her parents before she was found dead near the campus in Gowa, South Sulawesi. Police say initial examinations found no signs of violence, and the family refused an autopsy, leaving the cause of death unresolved.

A New Era as Prabowo Delivers the Macro-Economic Framework Directly to Parliament

President Prabowo Subianto will personally present the Macro Economic Framework and the Core Policies of Fiscal Policy (KEM-PPKF) for the Draft State Budget for 2027 in a DPR plenary session on 20 May 2026, marking the first time a president delivers the KEM-PPKF. The move signals strong government commitment to macroeconomic management as RAPBN 2027 is discussed and coincides with National Awakening Day.

Indonesian Ambassador Djauhari hopes Indonesia–China business ties will be long-term

Indonesian Ambassador to China and Mongolia Djauhari Oratmangun urged Indonesian and Chinese business actors to cultivate long-term, trust-based relations, viewing partners as technology and production collaborators and as gateways to global supply chains. He cited the bilateral trade volume reaching 167.5 billion USD in 2025 and highlighted government incentives for downstream investments, plus notable UMKM activity at SIAL Shanghai 2026, signaling broader export opportunities to China.

'Piercing the Sky': Algiers' Largest Mosque on the African Continent

Detikcom visited the Djamaâ el-Djazair mosque in Algiers during SITEV 2026, noting its status as the world's third-largest mosque and Africa's largest. The project, a flagship of former President Abdelaziz Bouteflika's legacy, cost over USD 1 billion and includes a 265-metre tower, a one-million-book library, and a 120,000-seat main prayer hall. The visit showcased cross-continental collaboration — a German architect and a Chinese contractor — and the Neo-Andalusian-modern design blend that characterises the site.

US sanctions Gaza flotilla aid activists, accusing them of ties to a Hamas network

The United States on 19 May sanctioned four individuals linked to a Gaza humanitarian flotilla, alleging ties to Hamas and related networks. The sanctions follow Israel's interception of the flotilla and come as Washington targets groups connected to Hamas amid the Gaza crisis, which remains severe with ongoing hostilities and high casualties.

The final group of Karawang's prospective Hajj pilgrims has departed

Karawang's final group of prospective Hajj pilgrims, Kloter 27, comprising 19 people, has departed from the Karawang Islamic Center to Makkah. The group joined pilgrims from Bogor to complete the departure quota, with organisers praising coordinated efforts among the TNI, Polri and local government for a smooth operation. This year Karawang is sending pilgrims in five Kloter groups.

Convicted Rajo Emirsyah's Harley attracts fierce bidding at auction, selling for nearly Rp1 billion

On the second day of BPA Fair 2026, bidding was intensely competitive as state-seized assets from corruption cases were snapped up at prices well above reserve values, with final bids reaching Rp4.846 billion. Notably, Rajo Emirsyah's Harley-Davidson Road Glide sold for Rp901,445,700, while a blue BMW 220i remained unsold, prompting a post-auction review.

Indonesia backs China's agenda to drive digital transformation at APEC 2026

Indonesia backs China's bid as APEC 2026 chair to advance inclusive digital transformation, emphasising support for MSMEs, women- and youth-led businesses, and supply-chain resilience amid regional disruptions. Jakarta also underscores open, rules-based trade and greater participation of women and youth in the economy, aiming for tangible benefits for business through APEC.

Defence Minister Sjafrie on the Andrie Yunus Case: The Acid-Attack Incident Could Carry a Heavier Penalty

Defence Minister Sjafrie Sjamsoeddin indicated that the military judiciary could sentence four BAIS TNI soldiers more severely for the acid-attack on KontraS activist Andrie Yunus, as the case proceeds at Military Court II-08 Jakarta. He highlighted the toughness of military justice and noted the presence of a military prosecutor in the Attorney General's Office and a military chamber in the Supreme Court.

Finance Minister Purbaya Promises to Safeguard Indonesia's State Budget Credibility

As of 30 April 2026, debt financing to cover the 2026 APBN deficit reached Rp305.5 trillion, or 36.7% of the Rp832.2 trillion debt-financing ceiling. Non-debt financing was minus Rp7 trillion, indicating expenditures were disbursed under non-debt financing schemes. Cumulative financing to end-April stood at Rp298.5 trillion, about 43.3% of the overall APBN financing target, with the government stressing prudent management to maintain fiscal stability and continued credibility of the APBN.

KPK Questions Muhadjir to Compare 2022 Hajj Quota Allocation

The KPK is examining Muhadjir as part of its Hajj quota corruption probe, focusing on whether quota distribution in 2022 differed from other years. Muhadjir, who served as interim Minister of Religious Affairs for 20 days in 2022, said there were few questions and that he was not implicated. The probe has already named four suspects and alleges state losses of about Rp 622 billion.

KPK Seizes Hundreds of Millions of Rupiah from the Minister of Transport's Senior Adviser in the Budi Karya Sumadi Era

The Indonesian Corruption Eradication Commission (KPK) has seized hundreds of millions of rupiah from the Minister of Transport's Senior Adviser, Robby Kurniawan, as part of an ongoing probe into alleged bribery over railway construction and maintenance projects under the Directorate General of Railways (DJKA) of the Ministry of Transport. The seizure follows Robby Kurniawan's testimony on 18 May 2026, with investigators also questioning other officials; the case encompasses multiple railway schemes across Java, Sumatra and Sulawesi.

GPCI: WNI yang Diculik Tentara Israel Dibawa ke Pelabuhan Ashod

Seven Indonesian nationals have reportedly been abducted by the Israeli army after ships bound for Gaza were intercepted in the Mediterranean. Indonesian officials, with GPCI and media outlets, are coordinating with the Foreign Ministry to locate and repatriate the captives, who are said to be transported to Ashdod, Israel.

US sanctions four Gaza flotilla activists over alleged Hamas support

The U.S. Department of the Treasury's Office of Foreign Assets Control has sanctioned four individuals over their alleged involvement with a flotilla bound for the Gaza Strip, organised by the Palestinian Advocacy Organisation Abroad (PCPA), for attempting to enter Gaza to support Hamas. Additional sanctions target the influence of the Muslim Brotherhood in Gaza, the Hasm movement in Egypt, and Hamas itself. The convoy, which carried humanitarian aid to Gaza, departed Barcelona on 15 April; activists later reported that Israeli forces seized their ships near Crete and damaged their engines and navigational systems, with the fleet surrounded by Israeli warships in international waters about 250 nautical miles from Gaza.

Finance Minister: Indonesia’s Fiscal Fundamentals Remain Healthy

Indonesia’s Finance Minister Purbaya Yudhi Sadewa asserts that the rupiah’s depreciation against the US dollar is not due to a deteriorating fiscal position, with debt-to-GDP around 40% and a budget deficit kept below 3% of GDP. He credits strong private-sector contributions for economic improvements and says any currency weakness has been accounted for in energy subsidies, amid global uncertainty and geopolitical tensions.

Assets of Former Kutai Barat Narcotics Unit Chief AKP Deky Jonathan Sasiang, Now in Bareskrim Custody, Baffle the Public

Former Kutai Barat Police Narcotics Unit Chief AKP Deky Jonathan Sasiang has been detained by the Bareskrim following investigations into drug trafficking and money laundering. LHKPN filings show his net wealth at just over Rp1 billion, with a four-report history during his police service; the latest declaration was filed in March 2026 while he headed the Narcotics Directorate of Kutai Barat.

Finance Minister Purbaya Provides Update on Cigarette Excise Tariff Rates for 2027

Finance Minister Purbaya Yudhi Sadewa has said he will not change the tobacco excise tax (CHT) or cigarette excise in 2027, emphasising stability for the industry while digitalising revenue oversight. He plans to install production-counting machines at several factories to assess actual state revenue and to deter illicit tobacco trade; the government will use the results to decide future policy directions.

US Avoids Responsibility for School Attack in Iran

The United States again refrains from taking full responsibility for the deadly attack on a school in Iran, which killed 155 people on the first day of the war. CENTCOM Commander Admiral Brad Cooper told a congressional panel that the site lay near a sensitive military area, complicating the investigation as domestic and international pressure mounts.

Iran threatens to open a new front if US-Israel carry out another attack

Iran's military spokesman warns Tehran would 'open a new front' if the United States and Israel carry out another attack, saying Tehran has prepared new tactical steps. An Iranian military source says Tehran has prepared new tactical steps in response to any future US attack. The report also recounts prior US-Israel strikes in February, Iran's retaliation, and a ceasefire attempt in Islamabad that ended without an agreement.

Indonesian Government Urges Israel to Release All Crew of the Detained Global Sumud Flotilla

The Indonesian government has urged Israel to release all ships and crew of the Global Sumud Flotilla 2.0 that are being held, emphasising the need to guarantee humanitarian assistance to Palestinians under international humanitarian law. Jakarta says it is coordinating with diplomatic networks and has joined a group of countries in condemning the attack on the flotilla.

Two Indonesian Nationals Still Sailing on the Sumud Flotilla Mission as GPCI Urges Prayers Ahead of Gaza Arrival

Two Indonesian nationals remain aboard the Kasr-1 Sadabat as part of the Sumud flotilla, with the Global Peace Convoy Indonesia (GPCI) calling for prayers and support as they near Gaza. Seven Indonesian citizens have already been detained by Israeli forces, including journalists and volunteers; GPCI is pressing the Indonesian government for a swift rescue and urging President Prabowo Subianto to issue a public statement.

KPK says two private-sector suspects in Haj quota case have not yet been detained

Two private-sector suspects in the Haj quota corruption case have not yet been detained and will be fast-tracked in the investigation, according to KPK. Investigators are questioning witnesses from associations, PIHKs, and the Ministry of Religious Affairs to understand how the additional Haj quotas were allocated. The KPK has named four suspects; Yaqut Cholil Qoumas and Gus Alex are already detained, while Ismail Adham and Asrul Azis Taba have not yet been detained, with state losses estimated at Rp 622 billion.

Pocong Terror Suspected as a Criminal Modus Operandi in Tangerang, Police Unmask Deceptive Tactics

Police in Tangerang are investigating reports of pocong sightings as a possible ruse to incite panic and facilitate theft or robbery. Authorities have stepped up night patrols and urged residents to activate their neighbourhood security systems and report suspicious activity, emphasising the need for verified information. The investigation aims to identify those involved and the motive behind the act.

Purbaya Does Not Intend to Change Cigarette Tax Rates in 2027

Finance Minister Purbaya Yudhi Sadewa has stated that the cigarette excise rate will remain unchanged in 2027 as the government seeks stability in the tobacco sector while strengthening revenue monitoring through digitalisation. He said the strategy aims to reveal the real revenue potential and to curb illicit cigarettes, with future policy direction contingent on those findings. In the first quarter, tobacco excise revenue reached Rp74.8 trillion, up 2.2%, while import duties rose 6.4% to Rp16.4 trillion and export duties fell 17.5% to Rp9.3 trillion, with improvements expected as crude palm oil prices rose in March and April.

Penajam Paser Utara Police Distribute Free Nutritious Meals to 3B Vulnerable Groups

Police in Penajam Paser Utara, East Kalimantan, distributed the Free Nutritious Meals (MBG) programme to 60 residents in Nipah-Nipah Ward, targeting the 3B groups—toddlers, pregnant women, and nursing mothers. The event, organised by the SPPG Kemala Bhayangkari of the PPU Police, aims to improve public health and support stunting prevention through nutrition.

KPK Hands Over Corruption Case Files of Pati Regent Sudewo to Prosecutors, to Be Tried in Semarang

The Corruption Eradication Commission (KPK) has transferred two case files concerning alleged corruption by former Pati regent Sudewo to the public prosecutors, who plan to prepare indictments within 14 days. The cases cover suspected extortion involving village official appointments and bribery in railway construction/maintenance under the Ministry of Transport. Sudewo indicated he will face trial in Semarang, and KPK indicated possible consolidation of charges under KUHAP.

Crude oil prices surge, Bahlil asserts Pertalite will not rise until the end of the year

Indonesia's Energy and Mineral Resources Minister, Bahlil Lahadalia, says subsidised fuel prices such as Pertalite and Biosolar will not rise this year, despite a jump in the Indonesian Crude Price to USD 117.31 per barrel in April 2026. He notes ICP has averaged around USD 80–81 per barrel since January, well below USD 100, supporting the stability of subsidised fuel prices through 2026. The April increase was driven by geopolitical risks and firmer Chinese demand, with potential dampeners including a projected global oil demand slowdown in Q2 2026 and possible resumption of Iran-US diplomacy.

The dollar once hit Rp16,295 in 2024, Jokowi's response now in the spotlight again

The rupiah's weakness against the dollar in 2024 resurfaced as Jokowi's comments were revisited amid Prabowo's remarks about currency depreciation. Jokowi suggested the rupiah's decline to around Rp16,200-16,300 per dollar was a reflection of global uncertainty, a view echoed as currency movements persisted into 2026, with the rupiah trading around Rp17,713 per dollar by mid-May.

Indonesia secures US$60.3 million trade deals at China food expo

Indonesia announced US$60.3 million in trade deals secured at the SIAL Shanghai food expo, well ahead of a US$30 million target. The deals cover products such as palm oil derivatives, bird's nests, durian, seaweed, chips, tempeh, and coffee, with officials highlighting growing Chinese demand and ongoing efforts to align Indonesian standards with Chinese requirements. Trade figures show China as a key growth driver for Indonesia's exports, with 2025 exports reaching about US$67 billion and agricultural exports to China at US$1.55 billion.

PWI Pusat appoints Marthen Selamet Susanto as Secretary General

The central Indonesian journalists’ association, PWI Pusat, has appointed Marthen Selamet Susanto as Secretary General, succeeding the late Zulmansyah Sekedang. The leadership overhaul, including changes to treasury posts, aims to ensure smooth organisational operations and continuity of PWI Pusat’s programmes and its contribution to the national press.

KSP Ungkap 5 WNI Ditangkap Israel, 4 Lainnya Lolos Dalam Kondisi Rawan

The Indonesian Presidential Staff Office (KSP) says five Indonesian nationals were detained by Israeli forces while four others on separate vessels in the eastern Mediterranean remain in a precarious situation. The government is coordinating with Indonesian embassies in Turkey, Egypt, Italy, and Jordan to facilitate repatriation and provide potential SPLP travel documents and medical support, and has joined a coalition of nations condemning the attack on the Global Sumud Flotilla (GSF).

IPC TPK records positive growth at the start of the second quarter of 2026

IPC TPK's throughput rose to 1,159,575 TEUs up to April 2026, a 6.7% year-on-year rise, with April throughput at 308,810 TEUs, up 26.8% from a year earlier. The growth aligns with Indonesia's improving trade figures, with imports up 10.05% in January–March 2026 and a trade surplus of $5.55 billion, while global supply-chain pressures persist and are shaping shipping routes. IPC TPK emphasises reliability and efficiency to keep goods moving.

Subang Regency Government Sees Off the Last 107 Prospective Hajj Pilgrims

The Subang Regency Government dispatched 107 prospective Hajj pilgrims as part of Kloter 39, with participants from Subang and neighbouring districts. Secretary Asep Nuroni urged pilgrims to maintain health, unity and to follow Hajj authorities, emphasising physical and mental readiness and upholding the good name of Subang and Indonesia during rites in the Holy Land.

Densus 88 Rakernis Opens as Kapolri Urges Anticipation of Cyber Threats

The national police's counter-terrorism unit Densus 88 opened its Rakernis for 2026, emphasising a precision-based, collaborative approach to counter violent extremism and terrorism online. The Police Chief warned that extremists are increasingly using AI and gaming platforms to radicalise and proliferate violence, while praising a near three-year period without terrorist attacks and urging vigilance in cyberspace, which underpins national stability and the investment climate.

Khofifah Inaugurates 'Omah Terapi-ku' in Sidoarjo for Children with Disabilities

East Java Governor Khofifah Indar Parawansa opened the 'Omah Terapi-ku' facility in Sidoarjo to provide daily therapeutic services for children with disabilities from low-income families. The project, funded partly by a Rp250 million grant from PLN and supported by the Health Ministry’s Surakarta clinic, aims to expand access to essential therapies and replicate the model at seven sites across East Java.

BPH Migas says national BBM stock is safe: Pertalite 16 days, Pertamax 27 days

Indonesia’s downstream oil and gas regulator, BPH Migas, told a parliamentary hearing that national fuel stocks are at safe levels as of 18 May 2026. Pertalite sits at about 1.37 million kilolitres with around 16 days of supply, Pertamax at 27.8 days, and Pertamax Turbo at the highest resilience of roughly 61.7 days, with Solar and other fuels also adequately stocked. The regulator asserted confidence that stock levels remain secure and continuously monitored.

Ministry of Primary and Secondary Education Considers Adding TKA, Science and English as Subjects

The Indonesian Ministry of Primary and Secondary Education (Kemdikdasmen) plans to simplify the administration and bolster the infrastructure of the Academic Ability Test (TKA) for primary and lower secondary education, and to develop a framework for TKA items in Science (IPA) and English. Evaluations from regional governments highlighted that the current TKA duration—four waves over two weeks—was too long, prompting potential changes to two waves per level and a gradual expansion of subjects.

KPK notes Aceh project procurement dominated by direct appointments with few tenders

The Indonesian Corruption Eradication Commission (KPK) says Aceh's government procurement is heavily dominated by direct appointment rather than tendering, with only 0.92% via tender in the 2026 General Procurement Plan (RUP) while direct appointments reach 74% (7,722 packages). The KPK warns these 'red flags' warrant evaluation to determine if processes are lawful or designed to bypass open bidding, and urges legislators to avoid intervention in procurement implementation.

Mother Reveals Last Contact with Journalist Thoudy Badai Before He Was Taken Captive by Israel

The mother of journalist Thoudy Badai has disclosed the last contact with her son before reports that he was taken captive by Israeli forces during a humanitarian mission to Gaza. She said the final message was sent on 18 May from international waters, and that the family had discussed risks in advance and has faith in the Indonesian government to secure repatriation.