Indonesian Political, Business & Finance News

Archive: 16 June 2026

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INDEF: Government Must Maintain Credibility for Rupiah and IHSG to Strengthen

INDEF has urged the government to maintain economic policy credibility to sustain the recent strengthening of the rupiah and the Jakarta Composite Index (IHSG). The institute emphasised the need for fiscal discipline, regulatory certainty, and structural reforms to build investor confidence. The IHSG is projected to potentially reach 8,000 within 12 to 18 months, while the rupiah could recover to Rp 16,500 per US dollar in one to two years, contingent on global conditions and consistent domestic reforms.

One Person Reported Dead Following Earthquake in Central Sulawesi

A magnitude 6.7 earthquake in Central Sulawesi has resulted in one fatality and over 300 people affected, according to Indonesia's National Disaster Management Agency (BNPB). The most significant damage was recorded in Sigi Regency, where dozens of homes and public facilities were destroyed. Authorities continue to assess the damage and coordinate relief efforts as aftershocks persist.

6 Direct Impacts of the High Interest Rate Era on Society

Bank Indonesia's surprise rate hike to 5.50% signals a prolonged period of high interest rates, mirroring global trends. This shift will incrementally raise borrowing costs for households across various loan types, from credit cards to mortgages, while potentially benefiting savers. Financial experts note that maintaining a good credit score remains more crucial for managing loan costs than minor policy rate fluctuations.

M 6.7 Earthquake Shakes Central Sulawesi: 109 Residents Affected, Dozens of Buildings Damaged

A magnitude 6.7 earthquake struck Central Sulawesi, impacting 109 residents and causing injuries, with Sigi Regency reporting the most severe damage. The Meteorology, Climatology, and Geophysics Agency (BMKG) recorded 55 aftershocks, while local authorities and state energy firm Pertamina confirmed the continuity of fuel distribution and ongoing emergency response efforts.

One Sigi Resident Killed in M6.7 Earthquake Near Palu

A magnitude 6.7 earthquake that struck Palu, Central Sulawesi, has resulted in one fatality in Sigi Regency, with over 300 people affected and dozens injured. The National Disaster Management Agency (BNPB) reports significant damage to homes, places of worship, and a key provincial road, while aftershocks continue to be monitored.

Coordinating Minister Airlangga Invites German Businesses to Accelerate Investment and Vocational Cooperation

Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto met with a German business delegation in Jakarta to strengthen bilateral economic ties. The discussions focused on expediting the Indonesia-EU CEPA trade pact, boosting investment, and collaborating on green industry and vocational training. Both nations view the partnership as a strategic momentum for sustainable and inclusive future growth.

Green Energy Investment to Boost Industrial Downstreaming and Export Competitiveness

PT NQI has signed a joint venture with China's Hosen-X Shenzhen to build battery and solar wafer factories in Indonesia, aiming to strengthen the national renewable energy supply chain. The multi-million dollar investment is expected to enhance domestic manufacturing capacity, reduce reliance on imports, and support the country's electric vehicle and decarbonisation goals. The partnership also includes technology transfer in areas such as sodium-ion batteries and AI-driven energy management systems.

Israeli Minister Itamar Ben-Gvir Cancels US Trip Due to Visa Issues

Israeli National Security Minister Itamar Ben-Gvir has cancelled a planned trip to the United States after encountering difficulties in obtaining a visa. The US Embassy in Jerusalem reportedly required the far-right minister to provide biometric data, a procedure analysts interpret as a diplomatic snub. The incident adds to existing tensions between hardline members of the Netanyahu government and the Biden administration.

Bamus Betawi Prepares Strategic Programmes Ahead of Jakarta's 500th Anniversary

The Betawi Consultative Council (Bamus Betawi) is formulating strategic policies and work programmes to address the challenges and opportunities of Jakarta's development as the city approaches its 500th anniversary. The organisation reaffirmed its commitment to synergising with the Jakarta provincial government and preserving Betawi cultural heritage amid the capital's transformation into a global city. The meeting also took place against the backdrop of Jakarta's evolving legal status following a Constitutional Court ruling on the relocation of the national capital.

Strange Phenomenon Emerges in China: Retailers Suffer While Industry Profits

China's economy is exhibiting a two-speed pattern as retail sales fall for the first time in over three years, while industrial output accelerates. The divergence is driven by resilient exports boosting factory production, contrasted with persistently weak domestic demand and a prolonged property slump.

Indonesia's Emerging Market Status at Stake Ahead of 18 June MSCI Index Decision

Indonesia's stock market faces a structural reckoning as it awaits the 18 June 2026 MSCI review, which will determine its continued classification as an emerging market. The benchmark IHSG index has suffered its third-worst crash in modern history, falling 41.72% from its January peak, amid record foreign capital outflows and currency pressures. Analysts recommend a barbell strategy to hedge against the outcome while retaining cash for a post-announcement recovery.

BNPB Reports 45 Families Affected by Central Sulawesi Earthquake, Infrastructure Damaged

A magnitude 6.7 earthquake in Central Sulawesi has impacted 45 families and injured 32 people, with Sigi Regency being the hardest hit. The tremor caused significant damage to homes, public facilities, bridges, and a provincial road, prompting ongoing assessments and emergency response efforts. Authorities are monitoring 55 aftershocks and have urged residents to remain vigilant and rely on official information.

US Intelligence Doubts Iran's Nuclear Commitment, Trump Team Divided

A US intelligence assessment has cast doubt on Iran's willingness to make nuclear concessions, creating a rift within President Trump's administration ahead of final negotiations. CIA Director John Ratcliffe reportedly warned the president, while Vice President JD Vance and special envoy Steve Witkoff remain strong advocates for a deal. The outcome of the talks, set to begin this week, could have significant implications for global energy markets and regional stability.

BEM Bersatu Rejects Student Movements Allegedly Exploited for Practical Political Interests

The BEM Bersatu alliance has voiced strong opposition to what it claims is the infiltration of student protests by practical political actors. The group alleges that certain demonstration leaders have ties to political elites and are using luxury facilities, undermining the independence of the student movement. They are calling for a return to genuine moral advocacy, support for the free nutritious meal programme with improved governance, and a focus on combating major corruption cases.

Panic Over AI-Generated Photo of Collapsed Monument After Earthquake

A digitally fabricated image of a collapsed monument circulated widely following a 6.7 magnitude earthquake in Central Sulawesi, prompting officials to warn the public about the dangers of AI-generated hoaxes during emergencies. The head of the West Sulawesi Communication and Information Office urged citizens to verify information through official sources, noting that AI technology has made it increasingly difficult to distinguish fake visuals from real ones.

KPK Urged to Deepen Probe into Alleged Bribery Flow in Muara Enim Audit Case to BPK RI

Indonesia's Corruption Eradication Commission (KPK) is being urged to thoroughly investigate alleged money flows in a bribery case involving the manipulation of audit findings for the Muara Enim Regency government. The call follows the arrest of two suspects, including a BPK audit team leader, amid claims that a superior also received funds. The case highlights ongoing concerns over corruption within regional financial oversight.

Deputy Speaker Urges Pesantren to Embrace Technology

Deputy Speaker of the Indonesian House of Representatives, Cucun Ahmad Syamsurijal, has called for Islamic boarding schools (pesantren) to adapt to digital advancements, including artificial intelligence, to ensure students remain competitive. He stressed that technological adoption should not erode traditional values but rather strengthen the position of santri in facing global challenges. During a visit to West Java, he also inspected a subsidised food market aimed at easing the burden on local residents.

PSI Marks Islamic New Year with Charity to Strengthen Social Awareness

The Indonesian Solidarity Party (PSI) commemorated the Islamic New Year 1448 Hijriah by hosting a religious gathering and providing aid to orphans and underprivileged families. The event, held at the party's central office in Jakarta, was described as a momentum to reinforce social solidarity. PSI's deputy chair, who also serves as Deputy Minister of Population and Family Development, emphasised the party's commitment to sustainable charitable initiatives.

SpaceX Enters AI Industry with Rp1,063.9 Trillion Acquisition of Anysphere

Elon Musk's SpaceX is set to acquire AI coding software firm Anysphere for US$60 billion, marking a major push into the corporate artificial intelligence market. The deal, expected to close in the third quarter of 2026, follows SpaceX's recent US$2 trillion IPO and could bolster xAI's position in the competitive AI coding sector.

Bareskrim Arrests Two Fugitives in 48 Kg Methamphetamine Case Linked to Indonesia-Malaysia Network

Indonesia's National Police Criminal Investigation Agency (Bareskrim) has captured two fugitives in Bengkalis, Riau, wanted for smuggling 48 kg of methamphetamine and other narcotics from Malaysia. The suspects, Indra Bayu and Solihin, were arrested in separate locations after evading capture during a May 2026 operation. Authorities estimate the seized drugs have an economic value of Rp 137.48 billion and could have endangered over 314,000 lives.

Deputy Speaker Cucun Inaugurates Liveable Housing in Cisalak, Bandung

Deputy Speaker of the Indonesian House of Representatives, Cucun Ahmad Syamsurijal, has inaugurated a renovated liveable home in Bandung Regency as part of a programme to combat poverty. The initiative, managed through his 'Rumah Aspirasi Kang Cucun' (Kang Cucun's House of Aspirations), aims to ensure underprivileged families have access to safe and dignified housing. The previously dilapidated dwelling in Kampung Cisalak has been transformed into a permanent, clean, and safe structure.

M 6.7 Earthquake in Central Sulawesi Causes Damage and Injuries, BNPB Releases Data

A magnitude 6.7 earthquake struck Central Sulawesi on Tuesday, causing injuries and damage across several districts. The National Disaster Management Agency (BNPB) reports at least 45 families affected, with 24 people suffering minor injuries and eight seriously hurt. Sigi Regency experienced the most significant impact, with widespread damage to homes, places of worship, and infrastructure.

Three illegal gold miners die in Aceh Jaya landslide

Three illegal gold miners were killed and four others injured when a landslide buried them at an oil palm plantation in Aceh Jaya, Indonesia. The miners had been operating manually for six days despite warnings from the plantation company. Following the incident, the company has given the miners one week to remove their equipment from the concession area.

India Keen to Bolster Ties with Indonesia Ahead Modi's Visit

India's Ambassador to Indonesia met with Cabinet Secretary Teddy Indra Wijaya to discuss strengthening the 76-year strategic partnership ahead of Prime Minister Narendra Modi's planned visit to Jakarta. The meeting follows President Prabowo Subianto's trip to India earlier in 2025, where both nations committed to accelerating cooperation in trade, investment, energy, digital technology, and infrastructure. The upcoming visit is expected to mark a significant milestone in deepening bilateral relations.

Lhokseumawe City Government Finds Nutrition Service Unit Fails Environmental Standards

The Lhokseumawe municipal government in Aceh has discovered a Nutrition Fulfilment Service Unit (SPPG) that does not meet waste management and environmental sanitation standards. A joint inspection by the health and environment agencies revealed the facility's wastewater treatment system is not fully operational, causing odour complaints from nearby residents. Authorities will provide guidance and require improvements before issuing the necessary hygiene sanitation certificate.

Iran and US to Begin Final Negotiations This Weekend, Strait of Hormuz to Reopen

High-level talks between Iran and the United States on Tehran's nuclear programme and sanctions relief are set to commence this weekend. The negotiations follow a commitment by President Donald Trump to fully reopen the Strait of Hormuz, a critical global energy chokepoint, once a final agreement is signed. The discussions, scheduled within a 60-day window after a ceasefire MoU, will tackle core disputes over uranium enrichment and parallel conflicts involving Israel.

BGN to Reduce Free Nutritious Meal Recipients, Excluding Elite High School Students

Indonesia's National Nutrition Agency (BGN) plans to refine the targeting of its free nutritious meal programme by removing students from affluent high schools who receive substantial daily allowances. The refocusing effort, coordinated with other ministries, aims to cut approximately 8 million beneficiaries to ensure aid reaches those most in need while achieving greater budget efficiency.

Doctor of Law Proposes Sociopreneurship Policing to Strengthen Community-Based Security

A newly graduated Doctor of Law from UNISSULA has proposed a 'sociopreneurship policing' model that integrates social entrepreneurship with law enforcement to prevent crime by addressing its socio-economic roots. The concept envisions police officers acting as initiators and facilitators of community-based enterprises to strengthen social resilience. The approach aims to complement traditional policing with a more preventive and empowering strategy.

Nusron and Sudaryono's Remarks After UGM Discussion Disrupted by Students

A discussion forum at Gadjah Mada University featuring three government officials was disrupted by protesting students, leading to heated exchanges and a brief chase. Minister Nusron Wahid expressed regret over the 'anti-democratic' disruption, while Deputy Minister Sudaryono denied fleeing, stating they were open to dialogue. Student representatives claimed the action was a legitimate protest against a government they accuse of silencing criticism and wasting public funds.

Egyptian Professor: The Quran is the Foundation of Civilisational Change

An Egyptian Quranic scholar asserts that the rise and fall of civilisations depend on human quality, with the Quran providing a foundation for change through knowledge, ethics, and divine values. Speaking at the World Quranic Civilization Forum in Jakarta, he emphasised that true investment in civilisation lies in building human character based on Quranic principles rather than material aspects.

Governor: Upon Arrival in Central Sulawesi, I Will Inspect Earthquake-Affected Areas

Central Sulawesi Governor Anwar Hafid has stated he will immediately inspect areas affected by a magnitude 6.7 earthquake upon his return from Jakarta. The quake, centred southeast of Palu, injured eight people and caused panic across several districts. Authorities are establishing emergency posts and conducting damage assessments, with vital infrastructure reported to be operational.

Deputy Home Minister Urges Papua Regions to Accelerate 2026 Special Autonomy and Infrastructure Budget Plans

Deputy Home Minister Ribka Haluk has called on regional governments in Papua to swiftly finalise their 2026 spending plans for additional Special Autonomy (Otsus) and Infrastructure funds, totalling Rp 2.7 trillion. The directive follows the issuance of a Finance Minister decree and a joint ministerial circular aimed at expediting the evaluation and implementation of these budgets to boost welfare and development in Papua.

Return of Second Wave Hajj Pilgrims from Medina Begins, 48 Percent Arrive in Indonesia

The repatriation of Indonesian Hajj pilgrims has entered a new phase with the first flights of the second wave departing from Medina. As of Tuesday, 48 percent of the total quota, or nearly 100,000 pilgrims and staff, have arrived back in Indonesia. The Ministry of Hajj and Umrah has urged pilgrims to safeguard their travel documents and maintain their health to ensure a smooth return process.

Gus Ipul Discusses Nasaruddin Umar's Prospects for Leading PBNU

PBNU Secretary-General Saifullah Yusuf (Gus Ipul) has commented on the growing speculation that Religious Affairs Minister Nasaruddin Umar could become the next chairman of Indonesia's largest Islamic organisation. He noted that Umar's previous role as Katib Aam and historical leadership patterns within NU make him a strong potential candidate.

Syria Partners with US Energy Giant ConocoPhillips to Develop Gas Sector

The Syrian government has signed a contract with American energy major ConocoPhillips and Novaterra to develop new gas fields and boost production capacity. The deal, described as the largest since the new administration took power, is part of a broader strategy to attract international investment and modernise the country's war-damaged energy infrastructure. Damascus is targeting oil production of one million barrels per day by 2030 following the lifting of Assad-era sanctions.

Iran war is a 'wake-up call' for Southeast Asia's energy sector, report says

The International Energy Agency warns that the Iran conflict has exposed Southeast Asia's dangerous overreliance on oil and gas transiting the Strait of Hormuz, potentially tripling the region's energy import bill to US$245 billion by 2035. The shock is accelerating a shift toward rooftop solar, electric vehicles, and renewed interest in nuclear power in countries like Indonesia and the Philippines. The IEA urges sweeping reforms and greater investment in renewables to reduce fossil fuel demand and bolster long-term energy security.

BI Assures Indonesia's External Debt Structure Remains Healthy Despite Reaching USD 439.8 Billion

Bank Indonesia has confirmed that the country's external debt structure remains sound, even as the total position approached USD 440 billion in April 2026. The central bank highlighted the dominance of long-term debt and sustained foreign investor confidence in the economy. Growth was driven by the public sector, while private external debt continued to contract.

Ariyanti Experiences Real Benefits of JKN When Mother-in-Law's Foot Requires Amputation

Ariyanti Sangaji, a resident of North Maluku, recounts how Indonesia's National Health Insurance (JKN) programme provided crucial financial and medical support when her mother-in-law's foot had to be amputated due to diabetes complications. The family initially dismissed the wound as minor, but the JKN coverage allowed them to focus on care and recovery without the burden of medical costs. She urges the public to maintain active JKN membership to ensure protection during unforeseen health emergencies.

Reorganising Justice in the Higher Education Ecosystem

Indonesia's higher education system faces a paradox where institutions are expected to be adaptive, yet policies remain rigid. Private universities (PTS) constitute over 63% of institutions and educate nearly 45% of students, but the ecosystem is marked by inequity between state and private sectors. While the number of universities has declined, study programmes and graduates have surged, raising concerns about quality and labour absorption.

Prabowo Instructs Minister Rosan to Disclose Investment Data to the Public

President Prabowo Subianto has directed Investment Minister Rosan Roeslani to transparently release investment data to the public. The instruction follows a report on Prabowo's overseas working visits, which indicated a surprisingly positive international response and increased confidence in Indonesia's economic stability. The move aims to provide the public with a complete, fact-based picture of national investment and future economic prospects.

At G7 Summit, Trump Promises Full Opening of Strait of Hormuz from Friday

President Donald Trump announced at the G7 summit that the Strait of Hormuz will be fully opened starting Friday as part of a peace agreement with Iran. The deal involves lifting the US naval blockade in exchange for Iran's commitment not to develop nuclear weapons, with a formal signing ceremony scheduled in Geneva. The agreement is expected to stabilise global oil markets and includes provisions for the gradual lifting of sanctions.

Deputy Home Minister Ribka Haluk Urges Completion of Additional Special Autonomy Fund and Infrastructure Budget Plans for 2026

Deputy Home Minister Ribka Haluk has called on regional governments in Papua to promptly finalise their budget plans for the additional Special Autonomy Fund and Additional Infrastructure Fund for 2026, following the allocation of Rp2.7 trillion. The funds, comprising Rp696 billion for special autonomy and Rp2 trillion for infrastructure, are intended to accelerate development in the region.

Police arrest man for alleged sexual abuse of dog in North Jakarta

Police in North Jakarta have arrested a 24-year-old man suspected of sexually abusing a dog at a pet shop. The incident was reported by a witness who recorded the act, leading to the suspect's arrest and the seizure of video evidence. The man faces up to one year in prison under Indonesia's new Criminal Code for animal cruelty.

Palu Earthquake: Kemkomdigi Restores 8 Affected BTS Sites

Following the magnitude 6.7 earthquake in Palu, the Ministry of Communication and Digital Affairs has restored eight of the 29 damaged Base Transceiver Station (BTS) sites. The disruption, caused by severed transmission lines and power outages, affected approximately 1.04% of the region's total sites. Restoration efforts are ongoing, particularly in Poso Regency, with no casualties reported at telecommunication facilities.

Why Pakistan Became a Key Mediator in the US-Iran Peace Deal

Pakistan has emerged as a pivotal mediator in the newly announced US-Iran peace agreement, leveraging its unique diplomatic ties with both nations. Islamabad's credibility stems from its shared border with Iran, a large Shia population, and sustained military and economic relations with Washington. The deal, set to be signed in Switzerland on 19 June, offers Pakistan economic relief from regional instability and potential progress on the stalled Iran-Pakistan gas pipeline.

Deputy Religious Affairs Minister Invites Muslims to Mark 1 Muharram with Self-Reflection

Deputy Minister of Religious Affairs Romo Muhammad Syafii has called on Indonesian Muslims to observe the Islamic New Year 1448 Hijriah through introspection and self-evaluation. Speaking at an event organised by the North Sumatra MUI, he highlighted the occasion as a moment for muhasabah, hijrah, and renewal. The gathering drew around 2,000 attendees and featured various activities aimed at revitalising the community's Islamic spirit.

Qatar: Iran-US Memorandum Marks First Step Towards Regional Consensus

Qatar's Foreign Ministry has stated that the memorandum of understanding between Iran and the United States represents an initial move towards broader regional consensus and stability. The agreement, expected to be signed in Switzerland, is seen as a potential foundation for future productive negotiations.

PSI Denies Jokowi's Regional Visits Are a Political Safari

The Indonesian Solidarity Party (PSI) has dismissed claims that former President Joko Widodo's recent regional visits constitute a political campaign, insisting they are merely to fulfil invitations from the public. The party, chaired by Jokowi's son Kaesang Pangarep, remains tight-lipped about the former president's formal role within its ranks. PSI is currently focused on strengthening its organisational structure ahead of the 2029 general election.

Danantara Bonds Oversubscribed, KADIN Says Global Recognition of Indonesian Economy

Indonesia's Chamber of Commerce (KADIN) has welcomed the strong investor demand for Danantara's inaugural global bonds, which raised US$1.5 billion against orders of US$4.6 billion. KADIN views the oversubscription as proof of robust economic fundamentals and a positive global perception of Indonesia, pledging to maintain this trust through improved business certainty.

BNPB: 109 People Affected by Earthquake in Central Sulawesi, 32 Injured

A magnitude 6.7 earthquake that struck Central Sulawesi has affected 109 people across 45 families, with 32 individuals reported injured. The National Disaster Mitigation Agency (BNPB) is continuing to verify and update casualty and damage figures as field assessments progress.