Indonesian Political, Business & Finance News

Archive: 17 June 2026

Showing 551-600 of 1,429 articles

Indonesia records 8.24 pct rise in foreign tourist arrivals

Indonesia saw an 8.24 percent increase in foreign tourist arrivals in the first four months of 2026, reaching 4.68 million visitors. Average tourist spending also rose, boosting foreign exchange earnings to Rp68.28 trillion. The government is continuing to develop tourist villages and events to strengthen the sector's contribution to GDP.

Minister Pigai says sterilisation of Bundaran HI from protests does not limit rights

Human Rights Minister Natalius Pigai defended the police's decision to block student protests from reaching the Bundaran HI roundabout, calling it a 'regulation' rather than a restriction of rights. He argued that redirecting demonstrations to alternative locations like Lapangan Banteng aligns with the Siracusa Principles on limiting rights. Police cited traffic paralysis risks and the area's status as a vital economic and transport hub to justify the blockade.

Investor Confidence Still Recovering Despite Rupiah Strengthening

The recent strengthening of the Indonesian rupiah is seen as a positive signal for the national economy, but market participants caution it is too early to declare a full recovery in investor confidence. HFX International Berjangka's President Commissioner Sutopo Widodo noted the currency's rise reflects resilient fundamentals, yet credibility hinges on long-term fiscal discipline and inflation control. A peace deal between the US and Iran has also provided a boost by easing global oil prices and geopolitical tensions.

Singapore Workers Are the World's Most Active AI Users, Report Finds

A Microsoft report reveals that 66% of AI users in Singapore are producing work previously impossible a year ago, surpassing the global average. While workers show strong adoption and a sense of responsibility, a gap exists between their readiness and organisational leadership alignment on AI strategy. Singapore ranks second globally in Microsoft's AI Diffusion Index.

Chronology of Decomposed Man Found in Boarding House Near Pinang Ranti Terminal

Police in East Jakarta have detailed the discovery of a 36-year-old man's decomposing body in a locked boarding house near Pinang Ranti Terminal. Residents alerted authorities after noticing a foul smell emanating from the property. No signs of violence were found on the body, which has been sent to a police hospital for autopsy.

Indonesia pushes youth to utilize AI to boost creative economy

Indonesia's Creative Economy Minister Teuku Riefky Harsya has announced a collaboration with Indosat and Adobe to equip young Indonesians with AI and creative skills, aiming to transform the sector into a new engine of national growth. The ECHOES X GENSi programme targets 15,000 youths this year, building on digital literacy efforts that have already reached over 10,000 participants. The initiative aligns with President Prabowo's Asta Cita vision and supports flagship programmes to elevate local creative talent onto national and global stages.

DEN to Involve Telkom in Server Needs for Digital Social Protection System

The National Economic Council (DEN) plans to engage state-owned telecom giant PT Telkom to supply servers for the Digital Social Protection (Perlinsos Digital) system, aiming to bypass reliance on the state budget. The system is targeted for a national launch by President Prabowo Subianto in October or November 2026, covering 541 districts. A pilot project is currently underway in 42 districts, with registration expected to be completed by July.

JPPI Criticises Use of Rp 224 Trillion Education Budget for 2027 Free Meal Programme

The Indonesian Education Monitoring Network (JPPI) has strongly criticised the planned allocation of Rp 224 trillion from the education budget to fund the free nutritious meal (MBG) programme in 2027. JPPI argues the funds should be returned to pure education functions, such as free schooling and teacher welfare, rather than being used for a programme they claim is not a priority for children facing dropout risks. The new leadership of the National Nutrition Agency (BGN) has stated the Rp 270 trillion indicative ceiling is not final and will be revised downwards.

Accused of Betraying Reformasi, Budiman Sudjatmiko: I Did Not Join a Dictatorial Government

Budiman Sudjatmiko, head of the Poverty Alleviation Acceleration Agency, has rejected accusations that he betrayed the Reformasi movement by joining President Prabowo Subianto's administration. He argued that the government was formed through a democratic election, not a coup, and suggested such accusations stem from the political narratives of those who lost the election.

Govt targets digital social protection system launch by November 2026

Indonesia plans to launch a nationwide digital social protection system by November 2026, integrating citizen ID data to improve aid distribution accuracy. National Economic Council Chairman Luhut Pandjaitan stated the platform aims for 80-90% operational readiness, with pilot projects currently running in 42 regencies and cities. President Prabowo Subianto is scheduled to inspect trial sites in July as the government pushes for real-time demographic data to eliminate administrative errors.

IHSG Cuts Losses, Closes Down 0.55%

The Jakarta Composite Index (IHSG) pared its losses to close 0.55% lower at 6,220.74 on Wednesday, recovering from a steeper intraday decline. The market was weighed down by a sharp drop in energy sector stocks, particularly Barito Renewables, but found support from a late rally in Bank Rakyat Indonesia shares. Broader sentiment was buoyed by domestic institutional coordination to maintain financial stability and easing geopolitical tensions globally.

Pramono Anung Offers Transport Investment Opportunities to Singapore

Jakarta Governor Pramono Anung has invited Singapore to invest in the capital's transport and urban development projects following high-level meetings in the city-state. Discussions focused on transit-oriented development, MRT expansion, and public space regeneration as Jakarta prepares for its 500th anniversary. The Governor emphasised that attracting strategic partnerships is crucial to accelerating the city's transformation and improving residents' quality of life.

Prabowo Holds Sudden Ministerial Meeting at Hambalang

President Prabowo Subianto convened an impromptu meeting with several ministers at his Hambalang residence to discuss the evaluation of the 2026 Hajj pilgrimage, higher education, human resource development, and strategic cooperation on critical minerals and rare earth technology.

Gaikindo says stronger rupiah is a breath of fresh air for the automotive industry

The Indonesian Automotive Industry Association (Gaikindo) has welcomed the recent strengthening of the rupiah, viewing it as a positive development that could stabilise vehicle prices and boost the sector. Gaikindo Chairman Jongkie D. Sugiarto said the appreciation helps manufacturers avoid price adjustments and is expected to support sales, production, and employment. The association is maintaining its 2026 new car sales target of 850,000 units.

Village Officials Are Key to Success of Priority Programmes, Says Ministry

Indonesia's Ministry of Villages and Development of Disadvantaged Regions has emphasised the strategic role of village officials in implementing national priority programmes, including the Free Nutritious Meals initiative. Minister Yandri Susanto pledged improvements to village governance, such as direct salary transfers and civil service-equivalent pay scales, while welcoming support from the Indonesian Village Officials Association (PPDI). The collaboration aims to bolster President Prabowo's agenda of building the nation from its villages to achieve economic equality and poverty eradication.

Two Villages in Cilacap Begin to Experience Clean Water Crisis, BPBD Distributes Aid

Two villages in Cilacap Regency, Central Java, are facing a clean water crisis as the dry season reduces water source availability. The Regional Disaster Management Agency (BPBD) has distributed 23,000 litres of water to affected residents in Kedungbenda and Karangkemiri villages. BPBD is also coordinating with local governments and promoting water conservation measures to mitigate the impact.

Varroa Mite Crisis in Australia Serves as a Warning for Indonesia

The uncontrolled spread of the varroa mite is devastating Australia's honeybee population and threatening agricultural sectors reliant on pollination, with economic losses projected to be severe. An Indonesian ecological genetics expert warns that the crisis, which has forced over half of Australian beekeepers out of business, highlights the urgent need for Indonesia to strengthen biosecurity and diversify pollinators. Without preventive measures, Indonesia risks similar colony collapses that could trigger crop failures, rising food prices, and increased import dependency.

Dishub Prepares Traffic Management for Betawi Ulama Haul Akbar at Monas on 19 June

The Jakarta Transportation Agency (Dishub) will implement situational traffic engineering around Monas on 19 June 2026 for the Haul Akbar Ulama dan Habaib Betawi event. A total of 88 personnel will be deployed to manage traffic flow and provide alternative routes for motorists. The agency urges the public to avoid the area and use public transport, with parking facilities prepared for up to 1,840 cars and 3,180 motorcycles.

Formappi Urges House Commission II to Immediately Release Election Law Revision Draft to Public

Formappi researcher Lucius Karus has called on the House of Representatives' Commission II to promptly publish the draft revision of the Election Law, warning that the legislative process risks becoming a mere formality without public access to the document. He cautioned that the series of public hearings held since January 2026 would be meaningless if the commission fails to demonstrate a concrete draft, citing the rushed revision of the Police Law as a precedent where expert input was ignored. Karus also criticised the internal dynamics of the House, asserting that the fate of legislation now depends more on the approval of top parliamentary leaders than on established procedural mechanisms.

Palace explains Prabowo's cancellation of Russia trip this week

The Indonesian Presidential Palace has clarified that President Prabowo Subianto will not attend the ASEAN-Russia Commemorative Summit in Kazan due to a focus on domestic priorities and recent prior engagements. Prabowo had already met President Vladimir Putin in Moscow in April and ASEAN leaders in the Philippines in May, with technical cooperation discussions with Russia already underway.

Tiyo Ardianto Denies BEM Bersatu Claims, Reveals Owner of Fortuner He Uses: Not Besan of Andika Perkasa

Former UGM student leader Tiyo Ardianto has refuted allegations from the BEM Bersatu alliance that his Toyota Fortuner belongs to a relative of former TNI commander Andika Perkasa. He clarified the vehicle was lent by a concerned relative following threats and the acid attack on fellow activist Andrie Yunus. Tiyo also dismissed claims that a listening device found in the car was staged, asserting the threats against him are serious.

Rupiah Closes Weaker at Rp17,762 per US Dollar Ahead of Fed Decision

The Indonesian rupiah weakened 0.21 percent to close at Rp17,762 per US dollar on Wednesday, pressured by external and domestic uncertainties. Markets are highly sensitive to signals from the upcoming Federal Reserve meeting regarding potential monetary easing later this year. Domestically, attention is also focused on Bank Indonesia's upcoming policy meeting, where it has previously raised rates to stabilise the currency.

NTB High Court Increases Sentences for East Lombok Chromebook Corruption Convicts

The Nusa Tenggara Barat High Court has significantly increased the prison sentences for four defendants convicted in a Rp 32 billion chromebook procurement corruption case. The former secretary of the East Lombok Education and Culture Department saw his sentence doubled from three to six years. The case, involving the misuse of 2022 special allocation funds, caused state losses of Rp 9.2 billion.

Budiman Sudjatmiko Reveals Chronology of UGM Discussion That Ended in Disbandment

Budiman Sudjatmiko, head of the Poverty Alleviation Acceleration Agency, detailed the events leading to the disbandment of a government-student dialogue at Gadjah Mada University. The forum, which also featured the Agrarian Minister and Deputy Agriculture Minister, was intended as a space for open criticism but was disrupted by a group of attendees after the presentations. The incident highlights ongoing tensions in campus political discourse despite the government's stated willingness to engage with student critics.

Observer Urges House Commission II to Immediately Discuss Election Law Revision

An election watchdog is pressing Indonesia's House Commission II to urgently begin deliberating revisions to the Election Law, arguing that several recent Constitutional Court rulings require immediate legislative accommodation. The observer expressed suspicion that the DPR's claim of the revision not being a priority may mask closed-door discussions aimed at a sudden ratification later this year. He also warned against a pattern of excluding public participation in the law-making process, demanding substantive dialogue with civil society from the outset.

Attorney General's Office Seals Thousands of Electric Motorcycles in IDR 1.1 Trillion Free Meals Programme Corruption Probe

Investigators from the Indonesian Attorney General's Office have sealed over 6,000 EMMO electric motorcycles at an industrial estate in Sentul, Bogor, as part of an ongoing corruption investigation. The seizure is linked to the procurement of 20,801 electric motorcycles worth IDR 1.1 trillion for the Free Nutritious Meals (MBG) programme in 2026. The case highlights alleged irregularities in a major government social assistance initiative.

House Commission II Schedules Safari to Party Leaders to Discuss Election Law Revision

The House of Representatives' Commission II is planning a roadshow to meet political party leaders to advance the stalled revision of the Election Law. The commission has completed a draft compilation incorporating party aspirations, expert input, and Constitutional Court rulings. Legislators aim to finalise the revision this year to provide legal certainty ahead of the 2029 election preparations, which are set to begin in 2027.

Luhut: Digitalisation Systems Could Save Government Thousands of Trillions of Rupiah

Luhut Binsar Panjaitan, Chairman of the National Economic Council, claims that integrated government digital systems like Perlinsos and Simbara could save the state up to Rp2,000 trillion. He emphasised that accurate, transparent digital ecosystems would significantly reduce opportunities for corruption. Pilot projects for the Digital Public Infrastructure are already underway in 42 districts and cities, with plans for a nationwide rollout by year-end.

PRR Task Force Urges Ministries to Expedite Post-Disaster Recovery Programmes

The Sumatran Post-Disaster PRR Task Force has called on ministries and agencies to accelerate the implementation of permanent recovery programmes in Aceh, North Sumatra, and West Sumatra. Chairman Muhammad Tito Karnavian stressed that affected communities have waited seven months for normalcy and that budget disbursement and administrative processes must be hastened. The task force is pushing for immediate execution of funded projects and the swift submission of proposals by remaining agencies to the Ministry of Finance.

When Will the 40-Year Home Instalment Programme Launch? Here Are the Details

The Indonesian government is finalising a mortgage scheme with a tenor of up to 40 years aimed at making home ownership more affordable for low-income citizens. The programme, directed by President Prabowo Subianto, could reduce subsidised monthly instalments from around Rp 1 million to approximately Rp 773,000. Minister of Housing and Settlement Areas Maruarar Sirait indicated the launch is imminent this year, pending final administrative coordination with the Tapera housing fund committee and financial institutions.

Police Chief: Police Must Be Smart and Neutral as Democracy's Referee

A senior Indonesian police official has emphasised the force's role as a neutral and intelligent referee in safeguarding the nation's democracy. Speaking at a graduation ceremony, he highlighted the founding vision of the police as guardians of civilisation and human dignity. The police leadership also outlined plans for deploying new graduates to address social issues and further developing the force's educational system to meet modern technological challenges.

YLBHI: Accusations Against Tiyo Ardianto Are an Attempt to 'Kill the Messenger'

The Indonesian Legal Aid Foundation (YLBHI) claims accusations against former UGM student leader Tiyo Ardianto are a deliberate attempt to silence criticism. An alliance of student councils (BEM Bersatu) had alleged Tiyo's links to a political network, including ties to a retired general and the PDIP party. Both Tiyo and PDIP have denied the allegations, calling them baseless and an insult to the student movement's integrity.

The Enactment of A Loss Adjuster Business License In Accordance with The Name Change ... - OJK

Indonesia's Financial Services Authority (OJK) has officially enacted a business license for PT Pandu Halim Perkasa Adjuster, reflecting a corporate name change from PT Pandu Halim Perkasa. The decree, effective 15 June 2026, mandates the loss adjuster to operate in full compliance with prevailing laws and OJK supervisory requirements. This regulatory action underscores the OJK's ongoing oversight of financial service entities in the country.

Rismon Sianipar Hands Over Diploma Authentication Book to Jokowi in Solo

Digital forensic researcher Rismon Hasiholan Sianipar has presented his latest book authenticating former President Joko Widodo's diplomas directly to Jokowi at his residence in Solo. The book serves as a scientific correction to a previous work and was welcomed by Jokowi, who signed it in appreciation. Rismon's legal counsel emphasised the need for the related defamation case to proceed to a final court ruling to establish binding jurisprudence.

Security Guards Encouraged to Become Frontline Ambassadors of Service and Safety

PT Prima Karya Sarana Sejahtera (PKSS) held a jamboree for 600 security guards in Jakarta, focusing on elevating their role from mere security to frontline service ambassadors. The event provided training in service excellence and product knowledge, emphasising professionalism and communication. Awards were presented to top-performing personnel to reinforce the company's commitment to 'service excellence to be number one'.

Deputy Food Minister Targets South Kalimantan as Kalimantan's Main Poultry Hub

Deputy Coordinating Minister for Food, Hanif Faisol Nurofiq, has set an ambitious target for South Kalimantan to become the primary poultry centre for Kalimantan. The initiative aims to bolster national food security by leveraging the province's strong infrastructure and resources, particularly in duck farming. The programme is already showing success, with local farmer groups producing tens of thousands of eggs daily and distributing products across Kalimantan and Java.

Modi and Trump Meet at G7 Summit: Diplomacy Without the Hug Amid Trust Crisis

Indian Prime Minister Narendra Modi and US President Donald Trump held a notably formal meeting at the G7 summit in Evian, France, marked by the absence of Modi's characteristic bear hug. The restrained greeting reflects strained bilateral ties due to trade tariffs and regional tensions. Modi used his summit address to warn of a global trust deficit, setting the stage for a crucial bilateral meeting aimed at repairing diplomatic rifts.

House Commission XIII Approves IDR 953.1 Billion Budget for Human Rights Ministry in 2027

The Indonesian House of Representatives' Commission XIII has approved a total budget of IDR 953.1 billion for the Ministry of Human Rights for the 2027 fiscal year. The approved amount includes the indicative ceiling of IDR 728.1 billion and an additional IDR 224.97 billion specifically for human rights promotion and enforcement programmes. However, lawmakers rejected a further proposed increase for management support, citing that the ministry's request did not adequately prioritise core functions such as victim protection and human rights compliance assessments.

Constitutional Court Targets July 2026 Ruling on Judicial Review of Free Nutritious Meal Programme Budget

The Indonesian Constitutional Court (MK) aims to deliver its verdict in July 2026 on three judicial review petitions challenging the allocation of the Free Nutritious Meal (MBG) programme within the national education budget. The court is expediting hearings, with the final expert testimony scheduled for late June, to ensure the ruling remains relevant to the ongoing fiscal situation. Petitioners, including education advocates and student leaders, argue that the budget shift has negatively impacted teacher welfare, research funding, and student services.

Prabowo Cancels Russia Trip to Focus on Domestic Issues

President Prabowo Subianto has cancelled his planned attendance at the ASEAN-Russia Summit to prioritise resolving domestic matters, according to State Secretary Prasetyo Hadi. The decision follows Prabowo's recent discussions with ASEAN leaders in the Philippines and a bilateral meeting with President Vladimir Putin in April. Technical follow-ups on cooperation commitments with Russia are already underway.

Government Prepares 40-Year Tenor Subsidised Mortgage Scheme, Here's the Progress

The Indonesian government is advancing plans for a subsidised home mortgage scheme with tenors of up to 40 years, aimed at lowering monthly instalments for the public. Housing Minister Maruarar Sirait confirmed the policy is a direct instruction from President Prabowo Subianto and will be deliberated by the Tapera Committee. The scheme is expected to be finalised this year and will remain optional, allowing buyers to choose shorter tenors.

Indonesia and Belarus Expand Manufacturing Cooperation

Indonesia is deepening industrial ties with Belarus, focusing on heavy equipment, mining vehicles, and agricultural machinery. The two nations are exploring the establishment of a Belarusian vehicle assembly plant in Indonesia and are accelerating a Memorandum of Understanding on industrial cooperation. This partnership is bolstered by an 82.57 percent increase in Indonesian exports to Belarus in 2025 and the implementation of the Indonesia-Eurasian Economic Union Free Trade Agreement.

B50 Fuel to Commence 1 July 2026, Indonesia to Save Up to Rp157 Trillion in Foreign Exchange

Indonesia's Ministry of Energy and Mineral Resources has announced that the mandatory B50 biodiesel blend will take effect on 1 July 2026, potentially saving the country Rp157.28 trillion in foreign exchange this year. The policy, which mixes 50 percent palm oil-based biodiesel with diesel, is expected to significantly reduce diesel imports compared to the previous B40 mandate. Officials also highlighted broader economic benefits, including added value for crude palm oil, job creation, and reduced greenhouse gas emissions.

President Prabowo Cancels Attendance at Russia-ASEAN Summit in Kazan

President Prabowo Subianto has decided not to attend the Russia-ASEAN Summit in Kazan, citing a focus on domestic priorities and previous bilateral discussions with President Putin. The summit, marking 35 years of relations, will proceed without Indonesia's head of state, who has already followed up on technical cooperation following his earlier visit to Moscow.

Alleged Illegal Levies on Free Cemeteries in Jakarta Under Scrutiny

The Jakarta Regional House of Representatives (DPRD) has raised concerns over persistent illegal levies (pungli) imposed on residents despite the city's free burial programme. Officials acknowledged the practice continues, but noted a shift in pattern, with neighbourhood unit heads (RT/RW) now allegedly involved in collecting unauthorised fees. The DPRD has urged the city administration to strengthen oversight to ensure the public service is delivered without improper additional costs.

Fadli Zon Discusses 'IMF Trap' and Habibie's Policies, Praises Prabowo's Decision

Minister of Culture Fadli Zon criticised the IMF's historical 'one size fits all' neoliberal prescriptions, claiming its intervention during the 1997-98 Asian financial crisis 'poisoned' Indonesia's economy by forcing bank closures and weakening the rupiah to enable regime change. He praised President Prabowo Subianto's recent decision to reject an IMF loan offer, arguing it prevents Indonesia from falling back into the 'IMF trap', and defended former President Habibie's drastic policy of raising interest rates to 70% to stabilise the currency.

Jampidsus Seals All MBG Electric Motorcycles at EMMO Sentul Warehouse, Here's the Scene

The Indonesian Attorney General's Office has sealed approximately 6,000 EMMO electric motorcycles at a warehouse in Sentul, Bogor, as part of an investigation into alleged corruption within the Free Nutritious Meals (MBG) programme. The sealing is a temporary measure to secure the vehicles and prevent their relocation or transfer, not a formal seizure. Investigators aim to count the units while ensuring they remain available for potential future distribution under the MBG programme.

BNPB Confirms Joint Task Force Still on Alert for Flooding in West Aceh

Indonesia's National Disaster Management Agency (BNPB) has confirmed that joint personnel remain deployed in West Aceh Regency as floodwaters gradually recede. The disaster, triggered by the overflow of the Krueng Woyla River following heavy rainfall, inundated at least 130 homes and directly affected 300 residents. Authorities are continuing evacuation support, aid distribution, and damage assessments while urging heightened vigilance against further potential disasters.

West Papua prepares helicopter to support VP's visit to cocoa centre

The West Papua provincial government is arranging helicopter transport for Vice President Gibran Rakabuming Raka's visit to a cocoa development centre in South Manokwari. The visit, part of a national church choir festival agenda, aims to highlight the region's cocoa potential and includes a symbolic planting of 1,100 hectares. Local officials are coordinating security and technical preparations to ensure the visit proceeds smoothly.

Undana General Hospital Makes Neonatal Care a Flagship Service, Medical Staff and Equipment Prepared

The General Hospital of Nusa Cendana University (RSU Undana) in Kupang is prioritising neonatal care as a flagship service. The hospital has prepared specialist paediatricians, trained medical staff, and dedicated equipment to treat newborns under two months with congenital abnormalities. This initiative aims to provide specialised, high-quality care for vulnerable infants in the region.