Indonesian Political, Business & Finance News

Archive: 10 June 2026

Showing 1,601-1,647 of 1,647 articles

US Launches Missile at Tanker Bound for Indonesia's Neighbour, Sparking Fire

The United States military launched a missile strike on the oil tanker Marivex off the coast of Oman, causing a severe engine room fire and causing the vessel to partially sink. All 24 Indian crew members were evacuated safely amid reports that a US warship nearby did not render assistance, while Washington claimed the tanker had violated a blockade against Iran. The incident has heightened maritime tensions near the Strait of Hormuz, with the vessel having previously been sanctioned by the US for trading links with Iran.

Prosecutors Reveal Reason Nadiem Did Not Divest Company Shares Whilst Serving as Minister, Answer Is Unexpected

Prosecutors have alleged that former education minister Nadiem Anwar Makarim retained economic control over Gojek despite a purported mitigation of conflict of interest. They argued an irrevocable power of attorney merely disguised his continued control and benefit from the company. Nadiem reportedly told the court he did not sell his shares because he still wished to enjoy and develop the Gojek business.

US Announces Retaliatory Strike on Iran After Apache Helicopter Shot Down

The United States military has initiated a proportional self-defence strike against Iran in response to the downing of an American Apache helicopter over the Strait of Hormuz. President Trump confirmed the helicopter was shot down and vowed retaliation, with Iranian media subsequently reporting explosions near the southern coast. The incident marks the second US manned aircraft confirmed lost to Iranian fire during the Middle East conflict, threatening an already fragile ceasefire.

Ministry of Hajj and Umrah Receives Adahi Award for Successful Hajj Pilgrim Dam Governance

Indonesia's Ministry of Hajj and Umrah has been awarded by the Saudi-endorsed Adahi foundation for its professional management of the mandatory dam (sacrificial slaughter) for Indonesian pilgrims. The award recognises the ministry's push for more orderly, transparent, and digitally recorded dam payments this Hajj season. Deputy Minister Dahnil Anzar Simanjuntak highlighted the partnership with Adahi as crucial for ensuring the entire process meets strict Saudi professional standards.

A New Era for Witness and Victim Protection in Indonesia

Indonesia's House of Representatives passed a landmark revision to the Witness and Victim Protection Law on 21 April 2026, fundamentally reshaping the criminal justice system. The overhaul elevates the Witness and Victim Protection Agency (LPSK) to an independent state body and significantly expands legal protections, including guaranteed restitution mechanisms and mandatory provincial offices. The reforms address long-standing systemic failures marked by victim-blaming tendencies, denied restitutions, and a lack of support for vulnerable groups and human rights defenders.

Crypto Language: The Mask of Corruption

The recent KPK revelation of a code word 'malaikat' (angel) used to disguise bribe distribution in an immigration graft case exposes corruption as a manipulation of language. This phenomenon demonstrates how perpetrators misuse positive religious and everyday terms to obscure guilt and create a distance between their actions and reality. The fight against corruption is fundamentally a battle to preserve the integrity of meaning against intelligent yet unscrupulous individuals.

Why these MOE teachers left familiar classrooms to teach the Singapore curriculum overseas

Approximately 30 of 33,000 Ministry of Education teachers are on overseas secondment, primarily at the Singapore International School in Hong Kong and SAF locations, to deliver the Singapore curriculum. The educators describe the cultural adjustments, language challenges, and the value of bringing Singapore's holistic education, mathematics, and science syllabi to expatriate communities. The programme is framed as a developmental opportunity for teachers and a strategy to ensure seamless reintegration for returning Singaporean students.

Proposed US Hercules repair hub in West Java sparks debate on what Indonesia stands to gain and lose

Analysts say a US proposal to establish a regional maintenance hub for C-130 Hercules aircraft at Indonesia's underutilised Kertajati Airport could yield economic benefits, but warn it raises questions about compromising Jakarta's non-aligned foreign policy. The Indonesian government has provided scant details on the commercial or military nature of the plan, fuelling public controversy and speculation about what concessions might be required. Defence observers note the scheme appears to be a business-to-business arrangement focused on newer C-130J variants, though the lack of clarity leaves the deal vulnerable to geopolitical scrutiny.

Ziswaf as a Pillar to Propel the Nation in an Era of Disruption

Indonesia's economic growth has not eliminated a poverty rate of 8.25 per cent, highlighting a need for alternative instruments beyond state budgets. Optimising Zakat, Infaq, Sedekah, and Wakaf (Ziswaf) through digital innovation and conventional methods is proposed as a crucial social mechanism. The synergy between state programmes and Islamic social finance, with an estimated annual potential exceeding Rp327 trillion, is seen as vital for advancing public welfare.

Kim Jong Un and Xi Jinping Show 'Closeness' Sitting Side-by-Side at Stadium

Chinese President Xi Jinping attended a performance alongside North Korean leader Kim Jong Un during his first official visit to Pyongyang in seven years. The display of camaraderie comes as North Korea's growing trade and military ties with Russia bolster its diplomatic confidence. Xi emphasised the need for both nations to strengthen their strategic relationship and jointly protect their sovereignty and development interests.

Pertamina Fuel Prices Rise: Pertamax Now Rp 16,250 per Litre

Pertamina Patra Niaga has increased the prices of non-subsidised fuels Pertamax and Pertamax Green 95, effective 10 June 2026. The state-owned energy company cited a periodic evaluation based on global oil price trends and coordination with the government. Subsidised fuels and other non-subsidised products remain unchanged.

Trade Ministry to route all coal exports through PT DSI by 2027

Indonesia's Trade Ministry will phase in a new regulation granting state-owned PT Danantara Sumberdaya Indonesia exclusive rights to handle all coal exports by January 2027. A transition period beginning June 2026 will require private exporters to share their documentation with the firm before full centralisation takes effect. The move aims to consolidate government control over strategic commodity exports, with administrative sanctions for non-compliance with digital reporting rules.

BI rate hike boosts investor confidence as rupiah rebounds

Bank Indonesia raised its benchmark rate to 5.50 percent to arrest the rupiah’s sharper-than-expected depreciation and maintain stability. The move immediately lifted market sentiment, with the rupiah strengthening and the Jakarta Composite Index surging over 7 percent. Coordinating Minister Airlangga Hartarto said the response demonstrated the credibility of Indonesia’s fiscal and monetary authorities amid global turmoil.

Dozens of Free Nutritious Meal Kitchens in East Java Halt Operations Due to Budget Freeze

The Head of the East Java Free Nutritious Meal Task Force, Emil Dardak, has reported that dozens of local kitchens have ceased operations due to delayed budget disbursements. Additionally, the National Nutrition Agency has suspended 372 service units for failing to meet hygiene and sanitation certification requirements. The provincial government is urging administrators to complete the necessary paperwork within a 30-day grace period.

Trump Vows Retaliation After US Helicopter Shot Down Over Strait of Hormuz

President Donald Trump has accused Iran of shooting down a US Apache helicopter over the Strait of Hormuz and pledged a military response. Both pilots were safely rescued, though Washington has not yet specified the nature of its retaliation, risking renewed tensions amid a fragile ceasefire. Iranian officials have warned against the presence of foreign forces in the region, while signalling potential escalation.

High waves forecast to hit several Indonesian waters

Indonesia's Meteorology, Climatology, and Geophysics Agency (BMKG) has warned that waves of 2.5 to 4 metres are likely to affect multiple coastal areas from 10 to 13 June 2026. The high-wave warning covers waters off southern Sumatra, Java, Bali, and the Nusa Tenggara islands, posing risks to fishing boats, barges, and ferries. Coastal communities and maritime operators have been urged to monitor weather updates to mitigate safety risks.

When Financial Markets Determine Investment Performance of the Life Insurance Industry

Indonesia's life insurance industry saw investment returns plunge into negative territory in the first quarter of 2026, primarily due to financial market volatility. The Indonesian Life Insurance Association (AAJI) reported a loss of Rp1.60 trillion, a stark contrast to the Rp790 billion gain recorded a year earlier. Despite the short-term pressure, the industry maintains a long-term, prudent investment strategy, with a significant shift towards government bonds now representing 43.4% of the total portfolio.

Said Iqbal Responds to Doubts He Will Cease Being Critical After Becoming Prabowo's Adviser

Labour Party President Said Iqbal has addressed concerns that his new role as Presidential Special Adviser on Employment and Labour Welfare will stifle his critical stance on workers' issues. Iqbal argued that political power and lobbying are essential tools for achieving labour reforms, citing his organisation's longstanding support for President Prabowo Subianto. He pointed to recent minimum wage increases under Prabowo's administration as evidence of policy delivery after a decade of stagnation.

Three Muhammadiyah Cadres Challenge Isbat Session for Determining Ramadan and Eid al-Fitr Start Dates at Constitutional Court

Three Muhammadiyah members have filed a judicial review petition with the Constitutional Court, challenging the legal basis for the government's isbat session that determines the start of Ramadan and Eid al-Fitr. The petitioners argue that the current law unfairly prioritises the rukyat hilal (moon sighting) method over the hisab (astronomical calculation) method used by Muhammadiyah, causing constitutional harm. They seek equal state recognition for the hisab method in determining key Islamic dates.

Iran Demands Foreign Forces Leave Strait of Hormuz, Warns of Crossfire Risk

Iran's Foreign Minister has called for all foreign troops to withdraw from the Strait of Hormuz, warning they risk being caught in accidental crossfire. The demand follows the downing of a US Apache helicopter, which former US President Trump claims Iran shot down. The incident threatens a fragile ceasefire in place since 8 April as Washington and Tehran struggle to negotiate an end to the Middle Eastern conflict.

Pertamax Price Rises to Rp16,250 Today, 10 June 2026; Pertalite Unchanged

PT Pertamina Patra Niaga has adjusted the price of non-subsidised fuels Pertamax and Pertamax Green upwards effective today, citing global oil price movements. The government has maintained the price of subsidised fuels Pertalite and Biosolar, a decision praised by a parliamentary commission member. The price hike for higher-octane fuels comes amid broader global energy volatility affecting inflation projections.

Bapanas Chief Discusses Egg Price Stabilisation with Farmers

The Head of the National Food Agency and Agriculture Minister, Andi Amran Sulaiman, convened with Indonesian egg farmers to address plunging farm-gate prices caused by oversupply. The government will enforce a purchase reference price and direct the State Logistics Agency, Bulog, to distribute subsidised corn for feed. Egg procurement for the national Free Nutritious Meals programme will also be increased to three times weekly to absorb excess production.

Said Iqbal's Long Road from Activist to Presidential Adviser on Labour

Veteran labour activist Said Iqbal has been inaugurated as the President's Special Adviser for Employment and Worker Welfare, marking his first public office after decades of advocacy. Known for leading massive campaigns against outsourcing and for social security, he currently heads both the Indonesian Trade Union Confederation (KSPI) and the Labour Party. His appointment signals a direct channel for labour voices within the presidential administration.

KPAI Reveals Many Daycare Centres Operate Without Permits

The Indonesian Child Protection Commission (KPAI) has found that many daycare centres lack proper permits and exhibit weak legal standing, often prioritising business over child safety. The commission's supervision across five regions highlighted inadequate carer-to-child ratios and insufficient safeguarding policies. Authorities were criticised for only taking systemic action after cases of abuse go viral.

KPK Details Evidence in Muara Enim Regent Bribery Case

Indonesia's Corruption Eradication Commission (KPK) has detailed evidence seized in a graft case involving Muara Enim Regent Edison, including over IDR 1.8 billion in cash and bank balances. The evidence was collected from a local education official's residence and bank accounts held by nominees. The case stems from a 2026 sting operation targeting procurement fraud within the Muara Enim Regency government.

Sumatra Megathrust Threat: Bobby Nasution Warns of Aceh Tsunami Tragedy

North Sumatra Governor Bobby Nasution has stressed the critical need for megathrust earthquake mitigation to protect public safety and regional stability. He highlighted that the geological threat could have wide-ranging impacts on economic activity, public services, and social cohesion. The provincial government is implementing structural, non-structural, and cultural approaches, including fiscal allocations for post-disaster recovery.

Tourism Ministry Proposes Assistance for Hotel, Restaurant, and Café Waste Management

Indonesia's Tourism Ministry has proposed that the Environment Ministry provide guidance to hotels, restaurants, and cafés struggling with waste management compliance. Many businesses are currently unable to meet the full five-category sorting requirement under existing regulations due to space constraints, costs, and concerns about waste mixing during transport. The proposal follows the imposition of administrative sanctions on 298 hospitality businesses for waste handling violations.

Rhenald Kasali Highlights Resignation of 3 Hipmi Chair Candidates: Let Them Compete Fairly

UI Management Professor Rhenald Kasali has addressed the controversy surrounding the resignation of three candidates during the Indonesian Young Entrepreneurs Association (Hipmi) chairmanship election. He has called on senior figures to allow the younger generation to compete in a healthy and democratic manner without interference. Kasali emphasised that such interventions could undermine youth trust in organisational and democratic participation.

Boyamin MAKI Highlights Slow Handling of PT PJU CSR Corruption Case

Anti-corruption activist Boyamin Saiman has criticised the Banyuwangi District Prosecutor's Office for the sluggish progress in investigating alleged corruption involving PT Petrogas Jatim Utama's Corporate Social Responsibility funds. He argues that misuse of CSR funds, which provide tax benefits to companies, should be treated as a criminal corruption case rather than a mere administrative issue. MAKI is considering a pretrial motion if the protracted investigation continues without a resolution.

France Bars Israeli Finance Minister from Entering the Country

France has imposed an entry ban on Israeli Finance Minister Bezalel Smotrich, citing his active promotion of West Bank annexation and the recolonisation of Gaza. The sanctions also target four settler organisation leaders and twenty-one violent settlers. The move was coordinated with the UK, Canada, Australia, New Zealand, and Norway.

Constitutional Court Reviews Judicial Law on Ramadan and Shawwal Determination

Indonesia's Constitutional Court has commenced a judicial review of the Religious Courts Law, specifically challenging provisions on the official confirmation of the start and end of Ramadan. Three Muhammadiyah members argue that privileging the rukyat hilal (moon sighting) method over their hisab (astronomical calculation) method creates legal uncertainty and discrimination. The court advised the petitioners to strengthen their legal standing and clarify how the official mechanism impedes their religious practice.

Worker Protection Begins with Availability of Employment

Indonesian business association APINDO argues that the fundamental form of worker protection is the existence of jobs themselves, warning that regulations risk being ineffective without sufficient employment opportunities. The debate comes as the 114th International Labour Organization conference discusses how to protect platform workers without stifling the growing digital economy. Nations are urged to develop adaptive, country-specific policies that balance worker welfare with encouraging investment and technological innovation.

HIPMI Papua New Autonomous Regions: We Are Not Asking for Privileges, but Equal Rights

Four regional boards of the Indonesian Young Entrepreneurs Association (HIPMI) from Papua's new autonomous regions have objected to voter eligibility rules ahead of the organisation's national congress. They argue the decision potentially curtails their participation despite having fulfilled all organisational obligations since their formation. The boards emphasise they seek equality and objective recognition, not special treatment.

Danamon Agrees Rp500 Billion Funding Facility for Akulaku to Strengthen Digital Financing

PT Bank Danamon Indonesia has agreed to provide a Rp500 billion funding facility to PT Akulaku Finance Indonesia to bolster the digital lender's working capital and expand its services. The collaboration aims to enhance the fintech firm's capacity to meet growing public demand for digital financial solutions. The deal also reflects a deepening synergy between traditional banking and digital finance players within the MUFG ecosystem.

Rupiah's Slide Against Regional Peers Shows Confidence Problem, Economist Says

Economist Lili Yan Ing warns that the rupiah's depreciation against both the US dollar and key Asian peers signals a serious decline in investor confidence, describing the weakness as an 'alarming crash'. She argues the exchange rate is a barometer of market trust, with investors increasingly favouring other currencies and destinations over Indonesia. Ing reiterates that the Rp 17,000-per-dollar threshold remains a critical psychological benchmark, and stresses that the currency's underperformance relative to regional neighbours highlights a fundamental confidence problem.

Economist Calls for Investment Reform as Indonesia's FDI Ratio Falls to 1.61%

Indonesia's foreign direct investment-to-GDP ratio has declined to 1.61%, significantly lagging behind regional peers like Vietnam, Cambodia, and Laos. An economist argued the country must transform its economy from natural resource extraction towards high-value manufacturing and improve regulatory certainty, while warning that excessive state involvement through enterprises like Danantara risks crowding out private sector dynamism.

Bali Financial Center Plan Can Benefit Singapore: Deputy PM

Singapore’s Deputy Prime Minister Gan Kim Yong has stated that Indonesia’s proposed financial centre in Bali could be mutually beneficial for the region, arguing a strong Indonesian economy supports Singapore's role as a business hub. The plan, recently enabled by new financial sector legislation, aims to attract global wealth through facilities such as family offices and targeted tax exemptions for foreign investors. The initiative comes as Singapore remains Indonesia’s top source of foreign investment, with inflows exceeding $4.6 billion in the first part of 2025.

Pertamina raises Pertamax and Pertamax Green prices from 10 June

Pertamina Patra Niaga has announced a significant increase in the price of its non-subsidised Pertamax fuels, effective 10 June 2026, citing an evaluation of global oil prices and market economics. The price of Pertamax (RON 92) will rise to Rp16,250 per litre, while Pertamax Green 95 will increase to Rp17,000 per litre, with the company asserting the adjustment was coordinated with the government. Prices for subsidised fuels and other non-subsidised variants such as Pertamax Turbo remain unchanged.

Luhut Reveals New Social Assistance Distribution to Be Digitally Based and Use AI

The Indonesian government plans to overhaul its social assistance distribution system by adopting digital single IDs and artificial intelligence to ensure subsidies reach intended recipients directly. Luhut Binsar Pandjaitan stated the reforms could save significant funds and allow combined cash transfers to average IDR 5.4 million per person. The move aims to shift subsidies from goods to direct cash transfers and improve targeting efficiency.

4,780 Prospective Students Accepted to Undiksha via National Selection, Independent Route Open Until July

Universitas Pendidikan Ganesha (Undiksha) in Bali has admitted 4,780 new students through the SNBP and SNBT national selection pathways. The university is now utilising six independent selection schemes to meet its overall target of 6,000 to 6,100 enrolled students for the 2026/2027 academic year. Registration for the independent route remains open until the end of June, with the entire admissions process concluding on 31 July 2026.

Official: Pertamax Fuel Price Rises to Rp 16,250 per Litre Starting 10 June 2026

PT Pertamina has officially increased the prices of its non-subsidised Pertamax (RON 92) and Pertamax Green (RON 95) fuels, effective 10 June 2026. The adjustment, the second within June, is linked to the surge in global oil prices following the Israel-Iran conflict that erupted on 28 February 2026. Subsidised fuels Pertalite and Solar remain unchanged.

Energy and AI Focus of Future Cooperation with South Korea: Indonesian Envoy

Indonesia’s Ambassador to South Korea has identified energy, artificial intelligence, and human resource development as the main pillars for future bilateral cooperation. He noted that global oil supply tensions serve as a reminder to strengthen renewable energy collaboration, while South Korea’s ambition to become a global AI powerhouse offers significant partnership opportunities. The two nations are also working together on high-performance computing infrastructure to harness Indonesia’s demographic dividend.

WIKA Responds After Office Raided Over Djatiroto Sugar Factory Corruption Case

State-owned construction firm PT Wijaya Karya (WIKA) has pledged cooperation and transparency following a police raid on its Jakarta headquarters. The search is linked to an alleged corruption case involving the modernisation of the Asembagoes Sugar Factory project in Situbondo. Investigators seized physical documents and electronic data as evidence in the multi-hundred-billion-rupiah case.

KPK: Cory Gave Rp500 Million to Abi Nurwardani to Secure Future Projects

The Corruption Eradication Commission (KPK) has revealed that a private sector marketing employee allegedly handed over Rp500 million to a Muara Enim official to maintain favourable relations for winning future government projects. The funds were reportedly linked to a procurement project at the regency's Education and Culture Office. The case is part of a wider sting operation that saw the arrest of the Muara Enim regent and several other individuals.

Budi Gunadi Responds to Finance Minister Rumour: I'm Still Health Minister!

Health Minister Budi Gunadi Sadikin has dismissed speculation that he is set to replace Purbaya Yudhi Sadewa as Finance Minister, affirming he remains in his current post. He made the remarks after meeting President Prabowo Subianto, where he instead discussed public health programmes. Budi sidestepped questions about his readiness for the finance portfolio, while confirming the President's plans to visit a newly built hospital in West Lampung.

KPK and National Police Anti-Corruption Corps Launch Joint Investigation into Muara Enim Regent Case

Indonesia's Corruption Eradication Commission (KPK) and the National Police's Anti-Corruption Corps have initiated a joint investigation into alleged bribery and gratuity receipt involving Muara Enim Regent Edison. The case has drawn significant attention due to its connection to the education sector, a priority programme under the president. The KPK emphasised the need for comprehensive integrity strengthening and oversight in budget management and procurement within education.

Prosecutors Argue Nadiem Makarim Had Malicious Intent in Chromebook Corruption Case

Public prosecutors have asserted that former minister Nadiem Makarim exhibited malicious intent and committed unlawful acts in the alleged corruption case surrounding the procurement of Chromebooks. The prosecution claims Nadiem directly contravened presidential regulations by ordering subordinates to proceed with the procurement without debate. The alleged actions are said to have caused massive state financial losses and hindered equitable education quality across Indonesia.