Indonesian Political, Business & Finance News

Archive: 14 June 2026

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Gov't still studying proposal to add sugar to food assistance program

The Indonesian government is still studying a proposal from sugarcane farmers to include granulated sugar in the national food aid programme, emphasising that no formal discussions have yet taken place. The Indonesian People’s Sugarcane Farmers Association (APTRI) has suggested distributing one kilogramme of sugar per household to support farmers and stabilise the domestic market. Officials have said any adjustment to the commodity mix would require careful consideration of interconnected factors.

Jakota Tua Revitalisation: Jakarta to Revive Electric Tram as Part of Low-Emission Zone

The Jakarta provincial government plans to reintroduce an electric tram line and establish a Low Emission Zone as part of the revitalisation of the historic Kota Tua area. The initiative aims to transform the district into a world-class tourism destination while reinforcing its historical identity. The project will also integrate with other mass transit options such as the MRT, Transjakarta, and Jakarta Kota Station.

Koboy River Camp: Desa BRILiaN Tugu Selatan's Breakthrough to Empower the Community

Desa Tugu Selatan in Bogor has leveraged the BRILiaN programme to develop Koboy River Camp, a nature-based tourism destination managed by its village-owned enterprise (BUMDes). The initiative, supported by Rp300 million in infrastructure aid, aims to boost local economic self-sufficiency and village original income. Beyond tourism, the programme has also strengthened the local dairy sector by facilitating access to KUR microcredit, raising milk prices for 120 farmers.

Indonesian Students in China Act as Ambassadors to Boost Bilateral Cooperation

The Chinese Embassy in Jakarta has highlighted the crucial role of Indonesian students in China as ambassadors strengthening bilateral ties, particularly in education. With over 15,000 Indonesian students currently enrolled, they are seen as key to fostering future friendship and collaboration between the two nations. Indonesian officials also view the growing student diaspora as a national asset for development.

PDIP Legislator Criticises Alleged Deployment of Reserve Component to Guard Student Protest

A senior PDIP lawmaker has condemned the alleged mobilisation of the National Reserve Component (Komcad) to secure a student demonstration in Jakarta, arguing it violates existing laws. The Ministry of Defence denied the deployment was for protest security, claiming it was a planned readiness test, while the Ministry of Administrative Reform stated it never issued such an instruction.

Switzerland to Hold Referendum on Capping Population at 10 Million

Switzerland will vote on a constitutional proposal to limit its population to 10 million by 2050, a measure driven by the right-wing Swiss People's Party over concerns about immigration and strained public services. The referendum, likened to Brexit, could have far-reaching consequences for the Swiss economy and its relationship with the European Union. Recent polls suggest public opinion is now leaning against the proposal, despite earlier support.

All About World Day to Combat Desertification and Drought 2026

The United Nations marks the 2026 World Day to Combat Desertification and Drought on 17 June, focusing global attention on the critical yet often overlooked role of rangelands. With up to half of the world's grazing lands degraded, the 'Rangelands: Recognize. Respect. Restore.' theme calls for greater recognition of their economic and ecological value, respect for traditional custodians, and investment in restoration to safeguard food security and climate resilience.

Xiaomi unveils robotic arm for electric vehicle home charging

Xiaomi Auto plans to launch a robotic arm for home EV charging by Q4 2026, integrating automated parking and autonomous power replenishment. The system allows users to initiate charging via smartphone and automatically disconnects when the battery is full. The announcement comes amid intensifying competition in China's automated charging sector, with rivals like Li Auto, HIMA, and Star Charge showcasing similar technologies.

Danantara to Streamline SOEs, Lawmaker Says It's for Structuring and Asset Management Effectiveness

A member of Indonesia's House of Representatives has endorsed Danantara's plan to streamline state-owned enterprises from over 1,000 entities to around 200. The restructuring aims to eliminate operational inefficiencies estimated at Rp50 trillion annually without resorting to layoffs. The policy is framed as a long-term strategic move to create healthier, more professional SOEs capable of competing globally.

Accelerating Permanent Housing Construction, PRR Task Force Expedites Survivor Data Validation

The Indonesian government is accelerating the construction of permanent housing (huntap) for survivors of hydrometeorological disasters in Aceh, North Sumatra, and West Sumatra. As of mid-June 2026, 1,091 units are under construction and 406 have been completed out of a planned 39,817 units. Data validation is ongoing in areas like Pidie Jaya to ensure housing schemes match community preferences before further construction proceeds.

Reserve Component: A Pillar of National Defence (Part 1)

Five hundred civil servants in South Sulawesi have completed basic military training for the Reserve Component (Komcad), with participants reporting significant improvements in discipline and responsibility. The 45-day programme aims to bolster national defence by preparing a civilian reserve force. Trainees expressed hope that the experience will make them more productive and dedicated public servants.

MUI Rejects Mere Rehabilitation for Gay Party Participants, KH Cholil: Criminal Sanctions Must Apply

The Indonesian Ulema Council (MUI) has firmly rejected proposals to merely rehabilitate individuals involved in a same-sex party, arguing such measures lack deterrent effect. MUI Deputy Chairman KH Cholil Nafis insists that only firm criminal sanctions can prevent society from becoming permissive towards such behaviour. The council is urging the government to enact regulations enabling criminal prosecution, equating the acts to adultery or worse under Islamic law.

In First Week, Central Java Police's TOSS TB Programme Identifies 1,387 Pulmonary TB Suspects

A tuberculosis tracing initiative by the Central Java Regional Police has identified 1,387 suspected pulmonary TB cases in its first week. The programme leverages community police officers trained as TB tracers to conduct early screening and health education. Authorities say the collaboration between police and health workers is proving effective in expanding early detection and curbing transmission.

JAKIM 2026 boosts Jakarta as leading sports tourism destination

The Jakarta International Marathon 2026 drew 45,500 runners, including over 1,000 international participants, marking a sharp rise from the previous year. The provincial government hailed the event as a success that promotes healthy lifestyles and strengthens Jakarta's reputation as a world-class sports tourism destination. Officials hope the marathon will become a flagship annual event that boosts the city's economy and international profile.

IDAI supports follow-up on hepatitis screening programme

The Indonesian Paediatric Society (IDAI) has endorsed the government's free health screening programme for hepatitis but insists that early detection must be paired with clear treatment pathways. IDAI also stressed the importance of boosting hepatitis B vaccination coverage immediately after birth to prevent long-term health issues.

KPK Accepts Verdict, Will Not Appeal Sentences for Noel and Others in K3 Extortion Case

Indonesia's Corruption Eradication Commission (KPK) has decided not to appeal the sentences handed down to former Deputy Manpower Minister Immanuel Ebenezer Gerungan and ten other defendants in a bribery and gratification case involving occupational safety and health (K3) certification. The KPK stated it fully accepts the court's decision, noting that all defendants have also accepted their sentences, which range from 1.5 to 6.5 years in prison. The case underscores the judiciary's role in providing legal certainty and supporting fair law enforcement against corruption within the Ministry of Manpower.

1,235 HIV Cases Recorded in Bengkulu, Health Office Stresses Importance of Early Screening

Bengkulu Province has recorded a cumulative total of 1,235 HIV cases, prompting health authorities to call for increased voluntary screening to combat late-stage diagnoses. Officials highlight that stigma and fear remain major barriers to early detection, despite the availability of free and confidential testing services. The provincial government is expanding screening access and collaborating with community groups to achieve the 'Three Zero' target of no new infections, no AIDS-related deaths, and zero discrimination.

MUI Chairman Speaks Out on the Free Nutritious Meal Programme

The chairman of the Indonesian Ulema Council (MUI), Anwar Iskandar, has endorsed the government's Free Nutritious Meal (MBG) programme as a noble initiative, while acknowledging implementation issues caused by rogue individuals. He highlighted the programme's broader economic benefits, including job creation and support for local farmers and small businesses, and firmly rejected calls for its termination, urging improvements instead.

The Case of a UAJY Lecturer Dismissed After Reporting Alleged Predatory Journals

A lecturer at Atma Jaya University Yogyakarta (UAJY) was dishonourably dismissed after reporting suspected predatory journal publications involving senior campus officials. The lecturer's legal aid foundation claims the dismissal was retaliatory and lacked clear justification, while the university's foundation insists the decision followed internal regulations and legal provisions.

Ndalem Pojok Kediri Site Holds Soekarno Ruwat Agung Ceremony

The Ndalem Pojok historical site in Kediri hosted a cultural ceremony to commemorate the moment Indonesia's founding father was renamed from Koesno to Soekarno. The event aimed to revive the nation's character and self-identity, linking Soekarno's ideals to President Prabowo Subianto's current economic self-sufficiency programmes. A senior police general stressed that cultural personality and national identity are prerequisites for achieving political sovereignty and economic independence amid global geopolitical pressures.

Cinta Batik Semarang Develops Eco-Friendly Batik Business with BRI's LinkUMKM

Cinta Batik Semarang, a batik artisan from Semarang, has expanded its market reach both domestically and internationally since 2006, with support from BRI's LinkUMKM platform. The business specialises in eco-friendly, naturally dyed batik tulis, demonstrating how local wisdom can create sustainable economic value. BRI continues to strengthen its LinkUMKM ecosystem, which has already assisted over 15.57 million MSMEs, to help more small enterprises scale up and enhance their competitiveness.

Pertamax Price Hike Causes Pertalite Queues to Snake at Sungailiat Petrol Stations

The recent increase in the price of non-subsidised Pertamax fuel has triggered a surge in demand for subsidised Pertalite in Sungailiat, Bangka Regency, leading to lengthy queues at filling stations. Motorists report waiting up to an hour and are calling for a crackdown on 'pengerit'—individuals who repeatedly purchase Pertalite to resell it at a markup. The situation highlights a consumer shift towards cheaper subsidised fuel following the price adjustment.

Indef Assesses Pertamax Price Hike Impact on Purchasing Power

The Institute for Development of Economics and Finance (Indef) warns that the recent Pertamax fuel price increase will primarily erode the purchasing power of Indonesia's middle class rather than trigger significant inflation. The institute argues the policy adds to household transport costs amid high interest rates and a weakening rupiah, potentially slowing domestic consumption which drives over half of GDP. While direct inflationary impact is deemed limited, Indef cautions about second-round effects on service sectors and SMEs.

Iran Threatens to Attack Elon Musk's Companies in the Middle East as Revenge

Iran has reportedly threatened to target Elon Musk's business interests in the Middle East in retaliation against the United States. State-affiliated media cited Starlink's key role in US military operations, including support for advanced weaponry. The threat comes even as Washington and Tehran are reportedly finalising a peace agreement that would reopen the Strait of Hormuz.

Deputy Minister: Children Can Learn About Themselves and the World Through Art

Deputy Minister of Primary and Secondary Education Fajar Riza Ul Haq has emphasised the role of art in holistic education from an early age. He stated that introducing children to art helps develop creativity, aesthetic experience, and psychological well-being. The minister highlighted that art exhibitions featuring both adult and children's works can foster imaginative dialogue and support comprehensive child development.

Tourism ministry seeks solutions to rising airfare costs

Indonesia's Tourism Ministry is collaborating with the Transportation Ministry and aviation industry to mitigate rising domestic airfares driven by higher fuel costs. Measures include a new fuel surcharge policy, government absorption of VAT on economy-class flights, and zero import duties on aircraft spare parts. The efforts aim to keep air travel affordable and support the domestic tourism campaign #ProudToTravelInIndonesia.

AGO to Soon Examine Sony, Investigate 26 Names Allegedly Involved in MBG Corruption

The Attorney General's Office (AGO) will examine former BGN Deputy Head Sony Sanjaya next week regarding corruption in the Free Nutritious Meals (MBG) programme. Investigators are also scrutinising 26 other individuals Sony named as allegedly involved, though he has yet to submit supporting evidence. The case involves five suspects and alleged price mark-ups on goods worth trillions of rupiah.

Deputy Minister calls for higher milk drinking for golden generation

A deputy minister has urged a national movement to increase milk consumption in Indonesia, which currently stands at just 16.8 litres per capita per year. He stressed that boosting dairy intake is vital for improving public health, bone growth, and brain development to build a productive 'golden generation'. The call involves collaboration between government, business, and society to strengthen human resources for future national development.

Police Identify Two Suspects in Attempted Kidnapping of 70-Year-Old Man in PIK

Police in North Jakarta have identified two suspects involved in the attempted kidnapping of a 70-year-old man in the Pantai Indah Kapuk area. The incident, which occurred in May 2026 and was captured on CCTV, shows the victim successfully fighting off his assailants after they tried to force him into a car. Authorities are continuing their investigation into the case, noting the victim had no prior disputes and did not know the perpetrators.

IHSG Strengthens, Danantara: Investors Increasingly Confident in RI's Economic Fundamentals

The Jakarta Composite Index (IHSG) closed up 2.07% on Friday, reflecting a weekly gain of 7.38%. Danantara Indonesia's COO Dony Oskaria stated the rally signals growing investor confidence in the nation's economic fundamentals and the performance of domestic companies. He also noted that share buybacks by state-owned enterprises are a normal corporate action when stock prices are deemed undervalued.

Ministry of Transport Tightens Oversight of Freight Vehicle Compliance

Indonesia's Ministry of Transport is intensifying surveillance of freight vehicles to improve road safety and logistics order. Data from early 2026 shows 24.36% of over 1.2 million monitored vehicles committed violations, predominantly overloading and documentation issues. The ministry is taking selective enforcement actions as it moves towards a zero-over-dimension-over-loading (ODOL) target by 2027.

Mexican Mayor Shot Dead in Cartel Drug Route Area

Joel Bravo, the mayor of San Miguel Amatitlan in southern Mexico, has been killed in an armed attack. The region of Oaxaca is a contested zone for drug cartels vying for control of trafficking routes. The state governor has vowed not to let violence prevail, while security forces have been reinforced to pursue the attackers.

Police Suspect Man Who Abused Pom Dog in North Jakarta Has Sexual Disorder

Jakarta police suspect a man who allegedly sexually abused a Pomeranian dog at a Penjaringan cafe suffers from a sexual deviation. The suspect is currently under investigation, with authorities coordinating psychiatric evaluation and analysing CCTV footage. He faces up to one year in prison under Article 337 of the Indonesian Criminal Code.

Govt trains vocational students for telecom network jobs

The Indonesian government is providing fibre optic network training to vocational students in Medan to support its broadband expansion goals and reduce reliance on out-of-region workers. Minister Meutya Hafid highlighted the growing demand for digital infrastructure skills, noting that young people, who form the majority of internet users, should also help maintain connectivity. The initiative aligns with the target of increasing fixed broadband penetration to 50 percent by 2029.

Thousands Flock to Lanudal Juanda for Naval Air Base Open Day 2026

Thousands of visitors attended the Naval Air Base Open Day 2026 at Lanudal Juanda in Sidoarjo, East Java, to view military aircraft and enjoy aerial displays. The event, held to mark the 70th anniversary of Indonesian Naval Aviation, featured exhibitions, community competitions, and an SME bazaar to boost the local economy. The Navy's top aviation commander stated the open day aims to strengthen ties between the military and the public through education and recreation.

Three Days Before Galungan, Chilli Prices in Karangasem Hit Rp 90,000 per Kilogram

Staple food prices in traditional markets across Karangasem Regency, Bali, have surged ahead of the Galungan holiday, with chilli prices reaching Rp 90,000 per kilogram. Traders report that prices for chillies, shallots, and garlic have been climbing daily for several weeks. The local government has organised a low-cost market to help curb the price increases before Galungan and Kuningan.

Iran Reportedly Opens Strait of Hormuz Without Toll, US Ready to Lift Blockade

Iran has reportedly agreed to reopen the Strait of Hormuz without imposing tolls on passing vessels as part of a deal with the United States. A senior US official indicated that Washington would lift its blockade once an agreement is signed, with mine-clearing operations to follow. The development aims to ease tensions that have disrupted shipping and global energy supplies through the critical oil trade route.

Video: Supporting Prabowo's Programme, Regional Development Bank Distributes Credit to Village Cooperatives - SPPG

Bank Maluku Malut's CEO confirms the regional development bank's commitment to supporting central and local government programmes, including the Free Nutritious Meal initiative. The bank is channelling credit to village cooperatives and small businesses, while reporting significant growth in lending, assets, and profits up to May 2026.

National Fleet Procurement Potentially Supported by New Leasing Company

The Indonesian government is exploring the establishment of a domestic aircraft leasing company to finance fleet expansion for national carriers. This strategic move aims to reduce reliance on foreign lessors, improve cash flow for airlines, and strengthen the competitiveness of the nation's aviation industry. The initiative is linked to long-term plans to procure dozens of new aircraft to support economic growth and mobility.

Child Sexual Abuse Perpetrator on the Run Since 2025 Arrested in Bali

Indonesian police have apprehended two fugitives in Bali, including a man wanted since December 2025 for the alleged sexual abuse of a child in Situbondo, East Java. The suspects were tracked down in Gianyar and Karangasem regencies following a prolonged investigation. Authorities reaffirmed their commitment to pursuing criminals across provincial borders to ensure they face legal proceedings.

Lenteng Agung Road Repair Marked with 'Depok' Boundary, Jakarta Road Agency Explains

A viral video showed a road repair on Lenteng Agung in South Jakarta abruptly ending with a 'Depok' boundary marker. The South Jakarta Bina Marga office clarified that the repair was carried out by the Depok city government, as local regulations and budget constraints prevent one regional government from working outside its jurisdiction.

Layered Strategy by Ministry of Primary and Secondary Education to Realise Safe and Violence-Free Schools

Indonesia's Ministry of Primary and Secondary Education has outlined a multi-tiered strategy to build a violence-free educational ecosystem. The approach focuses on strengthening school governance, enhancing the capacity of educators, and integrating character building across all grade levels. The initiative also mandates cross-sector collaboration and regional task forces to ensure early detection, confidential reporting, and effective handling of violations.

Prabowo prepares policies to cut energy import dependence: Bakom

President Prabowo's administration is prioritising energy self-sufficiency through structural reforms aimed at reducing Indonesia's heavy reliance on imported oil. The government is advancing domestic biofuel programmes like B50 biodiesel and E20 ethanol blending, while protecting subsidised fuel prices from global market fluctuations. These measures are part of a broader strategy to achieve national food and energy security.

Blueray Boss Alleges Customs Director General Received Rp21 Billion in Bribes

A court hearing has revealed allegations that the Director General of Customs and Excise, Djaka Budhi Utama, received approximately Rp21 billion in bribes. The testimony came from John Field, head of Blueray Cargo, who detailed seven instalments of payments coded 'BC1' for the director general. The Corruption Eradication Commission (KPK) is currently investigating Djaka and two other senior customs officials, while the trial of the alleged bribe-givers continues.

First Trial of Non-Active Pati Regent Sudewo in Corruption Case Begins, Police Prepare Security

The inaugural trial of non-active Pati Regent Sudewo on corruption charges commenced at the Semarang Corruption Court, with police deploying both overt and covert security measures. Sudewo faces allegations of extortion related to village official appointments and bribery involving a railway project. Authorities are monitoring potential mass mobilisation by supporters and opponents to ensure the proceedings remain orderly.

Indonesia's Investment Risk Rises, Investors Urged to Be More Selective

Indonesia's five-year credit default swap (CDS) has risen 35.35% year-to-date, signalling increased risk perception among global investors. Economists view this as a warning to exercise caution rather than a sign of crisis, noting that the current level remains far below the peaks seen during the pandemic. The shift is attributed to rupiah depreciation, rising bond yields, and fiscal policy concerns, prompting a more defensive and selective investment strategy.

PU Minister Optimistic Subulussalam People's School Will Soon Be Functional

Minister of Public Works Dody Hanggodo has expressed confidence that the Sekolah Rakyat Aceh 2 in Subulussalam will soon be operational despite logistical challenges. The remote border location has complicated the delivery of construction materials, prompting a shift in design from steel to concrete to accelerate progress. The project, valued at IDR 453.3 billion, has reached 60 percent completion and is being supported by alternative transport routes and military personnel.

G20 Nations Quietly Urge US to Review Negative Impact of Russia Sanctions

Several major G20 economies are privately pressing the United States to assess the adverse global economic effects of its sanctions against Russia, according to a Russian diplomat. The lobbying comes after Washington recently extended exemptions for seaborne Russian oil shipments following requests from forum participants. Moscow maintains it can withstand the sanctions, which it argues are harming the broader global economy.

Jakarta's online student admissions go live with Metranet's integrated system

Metranet's SCALA platform is now powering the online student admissions process for 2,179 schools across Jakarta. The company emphasises that digital solutions are foundational for transparent, accountable, and efficient education services. The system has already been adopted by over 5,000 schools in 15 provinces nationwide.

Pertamina Patra Niaga engages communities in waste and refuse processing

PT Pertamina Patra Niaga is involving communities near its operational areas in programmes that convert household waste and used cooking oil into valuable products. These initiatives, running in Dumai, Papua Barat Daya, and Makassar, aim to reduce environmental impact while fostering long-term community empowerment. The projects have yielded measurable results, including a monthly reduction of 6.7 tonnes of household waste and a social return on investment of 1.50 times.