Indonesian Political, Business & Finance News

Archive: 18 June 2026

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BI hikes rate by 25 bps to stabilize rupiah amid global tensions

Bank Indonesia raised its benchmark interest rate by 25 basis points to 6.25 percent as a preemptive measure to stabilise the rupiah and contain inflation within the 2.5±1 percent target corridor for 2026 and 2027. Governor Perry Warjiyo cited persistent global uncertainty and the need to attract foreign capital inflows, noting a net inflow of US$3.9 billion in the second quarter following earlier outflows. The central bank stressed continued vigilance and fiscal-monetary synergy amid geopolitical tensions and high US Treasury yields that have favoured safe-haven assets over developing economies.

Gibran urges careful planning for village cooperative locations

Vice President Gibran Rakabuming Raka has called for thorough studies and community consultation before establishing village cooperatives, following an incident where construction damaged a school in Ende, East Nusa Tenggara. He stressed that cooperative projects must not disrupt education or harm local businesses, and announced the relocation of the problematic site. During his visit, he also proposed the school be included in the government's free nutritious meals programme and noted local requests for teacher housing and better internet connectivity.

BPJPH Partners with ESQ Corp to Promote Mandatory Halal Certification

Indonesia's Halal Product Assurance Agency (BPJPH) has signed a memorandum of understanding with ESQ Corp to strengthen organisational culture and human resources in support of the national mandatory halal programme. The partnership aims to leverage ESQ's network of 2.5 million alumni to socialise the upcoming halal certification requirement, which becomes compulsory in October. BPJPH's head emphasised that halal has evolved into a universal standard recognised globally for health, cleanliness, economic value, and sustainability.

Central Sulawesi declares earthquake emergency response for one week

Central Sulawesi has enacted a seven-day emergency response following a significant earthquake, with Sigi District preparing a 14-day declaration. The disaster has affected over 6,400 residents, caused one death and 79 injuries, and damaged hundreds of homes and public facilities, while access to some areas remains cut off.

UGM Soars 18 Places to Rank 206th in QS World University Rankings 2027

Universitas Gadjah Mada (UGM) has climbed 18 spots to secure 206th position globally in the QS World University Rankings 2027. The rise was driven by improvements across nearly all indicators, notably a strong Academic Reputation ranking of 131st worldwide and a top-100 global Employer Reputation. The university's rector attributed the success to its social capital, enhanced internationalisation, and commitment to sustainable development.

No More Wild Boar Hunting Activity in Jasinga After Dog Attack on Child

Wild boar hunting activities have ceased in Jasinga, Bogor, following the death of a nine-year-old boy who was mauled by hunting dogs. Local police report that the community now understands to report any such hunting groups immediately. Authorities are also working with local leaders and the regional government to establish formal regulations for hunting locations.

Pertamax Price Hike: BI Forecasts 0.25% Inflation Impact

Bank Indonesia has warned that the recent increase in non-subsidised fuel prices, particularly Pertamax, will contribute approximately 0.25% to the nation's inflation. The central bank cited this domestic administered price adjustment, alongside global commodity volatility and potential weather disruptions, as key factors behind its pre-emptive decision to raise the benchmark interest rate to 5.75%. Despite the mounting pressures, BI projects overall inflation will remain within the government's target range of 2.5% plus or minus 1%.

Home Affairs Minister: 97 Percent of Temporary Shelters in Sumatra Post-Disaster Built

Indonesia's Home Affairs Minister Tito Karnavian reports significant progress in post-disaster recovery across Sumatra, with 97 percent of temporary shelters completed. Key sectors including government services, healthcare, and education have largely returned to normal operation, though some schools and local infrastructure still require permanent reconstruction.

BI: CIPS Transactions Hit 3 Billion Yuan, Surge 200% in a Week

Bank Indonesia reports that transactions through China's Cross-Border Interbank Payment System (CIPS) reached 3 billion yuan since its launch on 1 June, marking a 200% weekly surge. The system facilitates direct rupiah-renminbi trade and investment settlements, reducing reliance on the US dollar.

Five Competencies Young Talent Must Possess in the AI Era

A PERURI executive has outlined five essential competencies for young professionals to thrive in the AI-driven workplace, emphasising that human critical thinking remains paramount. The competencies—data literacy, AI literacy, digital product mindset, security and governance, and critical thinking—were highlighted at the BRAVO 500 Summit 2026. The executive called for stronger collaboration between government, educational institutions, and the private sector to build a future-ready talent ecosystem.

Premature Baby Found Mutilated in East Nusa Tenggara, Partially Eaten by Dog

A premature infant's body was discovered in a mutilated state in a village in Timor Tengah Selatan Regency, East Nusa Tenggara, after being dragged away and partially eaten by a dog. The mother, who gave birth alone at home, reported the child was stillborn and had left the body briefly before it disappeared. Police are investigating the circumstances, including the mother's extramarital relationship during her husband's absence.

Central Jakarta District Court Officially Transfers Hotel Sultan Land and 15 Buildings to Government

The Central Jakarta District Court has formally executed the transfer of the Hotel Sultan complex, comprising land and 15 buildings, to the Indonesian government. The court's bailiff read out the official report confirming the successful seizure of two plots of land and the inventory of assets belonging to the former operator, PT Indobuildco. The company has been given six months to remove its belongings from the premises to designated warehouses in Bekasi, West Java.

BI Warns of New Threat Looming Over Indonesia

Bank Indonesia has cautioned that an intensifying El Niño weather pattern could disrupt horticultural production in eastern Indonesia, adding to inflationary pressures. The central bank is coordinating with regional inflation control teams to secure food supply chains and mitigate price volatility. Despite these risks, BI Governor Perry Warjiyo affirmed that inflation is expected to remain within target over the next two years.

Al Washliyah Praises 2026 Hajj Services, Deemed Better and More Coordinated

The 2026 Hajj pilgrimage has been hailed as a success with significant improvements in service quality and management. PB Al Washliyah chairman KH Masyhuril Khamis commended the newly formed Ministry of Hajj and Umrah for its optimal performance in accommodation, health, and transport. The coordinated efforts between agencies reportedly led to a smoother pilgrimage and a reduction in illness and fatalities among pilgrims.

Law Ministry Grants Land in Tangerang for 'Sekolah Rakyat' Schools

The Ministry of Law has handed over a 6.3-hectare land certificate in Tangerang to the Ministry of Social Affairs for the construction of a permanent 'Sekolah Rakyat' (People's School). The initiative is part of a broader collaboration to support President Prabowo Subianto's priority programmes, with the Law Minister also pledging a personal asset in Central Sulawesi for the same purpose. Social Affairs Minister Saifullah Yusuf highlighted the positive development of students in the residential programme, noting improvements in discipline and confidence.

MSME Ministry Equips Micro Enterprises in Balikpapan with Digital Marketing Skills

Indonesia's Ministry of Micro, Small, and Medium Enterprises (MSMEs) has conducted digital marketing training in Balikpapan, East Kalimantan, to help micro businesses adapt to technological shifts. The programme, held in collaboration with TikTok Shop by Tokopedia, aimed to enhance product visibility and expand market access for around 70 local entrepreneurs. Participants also received guidance on obtaining business registration numbers (NIB) and halal certification to strengthen their legal standing and competitiveness.

Humane Approach: Policewomen Negotiators Serve Demonstrators at Monas

Policewomen from Polda Metro Jaya's Dalmas Sub-directorate adopted a humane, persuasive approach while securing a public demonstration at Monas. Led by Kompol Sri Ernawati, the female negotiators distributed water and bread to protesters, fostering positive communication. The initiative reflects the police force's commitment to ensuring freedom of expression remains safe, orderly, and conducive.

BAKTI Ready to Support Digital Connectivity for People's Schools and Village Cooperatives in 3T Areas

BAKTI Kemkomdigi is prepared to leverage the SATRIA 1 satellite, which now covers over 31,000 service points, to provide digital connectivity for President Prabowo's priority programmes in underdeveloped, frontier, and outermost (3T) regions. The infrastructure will support the 'Sekolah Rakyat' free education initiative and the 'Koperasi Desa Merah Putih' village economic programme. The government aims to operationalise 20,000 to 30,000 village cooperatives by August 2026.

Expert: Iran-US Peace Deal Would Provide Positive Sentiment for Energy Markets

An energy economist suggests that a peace agreement between Iran and the United States could lower global crude oil prices, potentially affecting domestic non-subsidised fuel prices like Pertamax. However, he cautioned that any price reductions would be gradual and dependent on geopolitical developments and the success of the peace implementation.

Minister: 90 Percent of Palm Oil Companies Have Raised FFB Prices for Farmers

Indonesia's Agriculture Minister reports that approximately 90 percent of palm oil companies have now raised the purchase price of fresh fruit bunches (FFB) from farmers following government intervention. The number of companies still holding out has dropped from 270 to around 130, with ongoing monitoring by a joint task force to ensure compliance. The move aims to protect the welfare of 15 million palm oil farmers and ensure they benefit from rising global CPO prices.

Police Reveal Losses from Hanania Travel Fraud Estimated at Rp 95.2 Billion

Jakarta police have disclosed that losses from an alleged Hajj and Umrah travel fraud by Hanania Group could reach Rp 95.22 billion, with the number of victims still rising. Investigators found the company has been in financial distress since 2023, operating a Ponzi-like scheme by using funds from new pilgrims to pay for earlier departures. Authorities are now expanding the case to include money laundering and have blocked three bank accounts while tracing assets linked to the suspect.

President Gathers Himbara Leaders to Discuss Indonesia's Economic Direction

President Prabowo Subianto convened directors and commissioners of state-owned banks (Himbara) at the Presidential Palace to outline his vision for the national economy. The meeting aimed to strengthen the banks' role as key drivers of economic growth while emphasising prudent intermediation. Investment Minister Rosan Roeslani stated the session was intended to be productive, ensuring the state banks deliver a positive impact on Indonesia's economic trajectory.

China unveils white paper on global governance, calls for stronger Global South representation

China has released a white paper advocating for reforms to the global governance system, emphasising the need for a greater voice for the Global South and a central role for the United Nations. The document, presented by Foreign Minister Wang Yi, criticises unilateralism and power politics while positioning Beijing as a champion of multilateralism amid rising geopolitical tensions. It calls for changes to international financial institutions and addresses emerging challenges in areas like artificial intelligence and outer space.

Government Allocates Rp100.1 Trillion for Aceh-Sumatra Disaster Recovery

The Indonesian government has earmarked Rp100.1 trillion for the rehabilitation and reconstruction of areas in Aceh, North Sumatra, and West Sumatra affected by recent disasters. The funding will be disbursed in three phases from 2026 to 2028, with the largest allocation of Rp38.9 trillion set for the first year. The announcement was made by the Coordinating Minister for Human Development and Culture, Pratikno, alongside other senior officials.

KPK Probes Extortion Mechanism in Silmy Karim Case

Indonesia's Corruption Eradication Commission (KPK) is investigating the extortion mechanism involving Deputy Minister Silmy Karim by questioning eight immigration civil servants and three private sector witnesses. The probe follows a sting operation in early June 2026 that netted 17 individuals suspected of corruption in the processing of foreign nationals' residence permits. Silmy Karim surrendered to the KPK and was named a suspect alongside seven others for alleged extortion spanning 2022 to 2026.

Gamelan Music Therapy Helps Lower Blood Pressure in Pregnant Women with Hypertension

A community service programme by Poltekkes Kemenkes Tasikmalaya in Cirebon has found that traditional gamelan music therapy can effectively reduce blood pressure in pregnant women with hypertension. The non-pharmacological approach, tested on 15 patients, showed positive physical and psychological results, including reduced stress and improved sleep quality. Researchers hope this locally-rooted therapy can become a safe, accessible alternative to support maternal health during pregnancy.

BMKG Issues New Warning: 62% Chance of Strong El Niño in 2026

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has warned that the 2026 dry season will be drier and longer than usual, with a 62% probability of a strong El Niño event. The agency has issued sector-specific recommendations for agriculture, water resources, energy, and health to mitigate the impacts of drought and forest fires.

South Jakarta intensifies 'eco enzyme' production to reduce organic waste

The South Jakarta administration is scaling up the production of eco enzyme, a fermented liquid made from fruit scraps and molasses, to tackle organic waste. The initiative supports a gubernatorial instruction on waste separation at source and comes ahead of a significant reduction in the volume of waste allowed to be sent to the Bantargebang landfill from August. Officials are urging widespread community participation, from subdistrict to neighbourhood levels, to promote environmental sustainability.

Bank Indonesia Says National Economic Growth Maintained Despite BI-Rate Hike

Bank Indonesia Governor Perry Warjiyo stated that domestic economic growth remains resilient, supported by strong domestic demand, despite the central bank raising its benchmark interest rate by 100 basis points in the first half of 2026. The central bank maintains its 2026 growth projection at 4.9–5.7 percent, citing robust household consumption, accelerated government spending, and expanding investment. The BI-Rate was increased to 5.75 percent to safeguard economic stability amid geopolitical dynamics and exchange rate pressures.

UBSI Cikampek Campus Scholarships Open Higher Education Opportunities for Gen Z Without Cost Concerns

Universitas Bina Sarana Informatika (UBSI) Cikampek campus is offering multiple scholarship schemes to help high school and vocational school graduates overcome financial barriers to higher education. The programmes target students with academic, non-academic, and digital talent achievements, providing both fee reductions and encouragement to excel. The campus's strategic location near industrial zones also offers students savings on living costs and early exposure to career opportunities.

Islam Protects Women

Following a violent assault on two women in Bandung, this article argues that urban safety requires more than just infrastructure and technology. It presents an Islamic perspective, emphasising that genuine security for women is built upon a foundation of individual piety, community responsibility, and just state enforcement.

PGN Launches 'GasKita Kitchen Renovation 2026' Programme

State-owned gas company PGN is offering a kitchen renovation prize draw for new household customers who sign up for its GasKita service by 31 July 2026. The programme aims to promote the benefits of natural gas for domestic use while rewarding customer loyalty.

Ukraine's Largest Drone Strike Hits Moscow, Oil Refinery Ablaze

Ukraine launched its largest drone attack on Moscow in years, striking a major oil refinery and forcing the closure of all the capital's airports. The assault, which Russian defences claim involved intercepting over 500 drones nationwide, comes as President Putin hosts an ASEAN summit in Kazan. Kyiv hailed the operation as a justified response to ongoing Russian strikes, amid stalled diplomatic efforts to end the war.

Emotional Farewells as Second Wave of Indonesian Hajj Pilgrims Prepare to Return Home

Indonesian Hajj pilgrims in Madinah have shared emotional stories of gratitude and compassion as they prepare to depart for home. Pilgrims praised the Ministry of Religious Affairs for excellent services, while heartwarming tales emerged of younger pilgrims assisting elderly compatriots during the journey. The smooth operations and swift responses of Hajj officers in reuniting lost pilgrims were also highlighted.

PPKGBK Clarifies No Sale or Grant of Hotel Sultan Land, Only a 30-Year Usage Permit

The Gelora Bung Karno Complex Management Centre (PPKGBK) has clarified that the land occupied by Hotel Sultan was never sold or granted to PT Indobuildco, but was merely provided under a 30-year usage permit. The legal counsel stated that the execution of the asset recovery, which began in 2006, was finally carried out on 18 June 2026 following a Central Jakarta District Court ruling. The government emphasised that all utilisation of state assets must comply with Minister of Finance Regulation No. 115/PMK.06/2020.

BI Tightens Dollar Purchases, Transactions Drop to US$9 Million

Bank Indonesia has progressively lowered the threshold for purchasing US dollars without underlying documentation, successfully reducing daily spot transactions to US$9 million. The central bank announced a further reduction to US$10,000 per person per month, effective 1 July 2026, aiming to shift nearly all foreign exchange transactions to those backed by genuine economic activity.

Education Ministry Releases 2025 Education Report Card as National Quality Benchmark

Indonesia's Ministry of Primary and Secondary Education has published the 2025 Education Report Card, a data-driven evaluation tool mapping the condition of primary to senior secondary schools nationwide. The platform aims to help schools and local governments identify issues and collaboratively improve education quality. Literacy and numeracy results show mixed progress across different school levels, with junior secondary schools achieving a 'Good' rating in literacy.

Three Scenarios for the JCI After MSCI Review: Surge to 7,000 or Plunge to 5,000?

Ahead of the MSCI's publication, analysts outline three potential outcomes for the Jakarta Composite Index (JCI) based on the global index provider's assessment of market accessibility. The base case sees the JCI consolidating between 6,000 and 6,350, while a bear case downgrade to Frontier Market status could trigger a sell-off towards 5,000. Conversely, a bull case lifting of the interim freeze could propel the index towards 7,000 as global funds rebalance.

Unnes Student Allegedly Sexually Harasses Three Jastip Customers

A student from Semarang State University (Unnes) is accused of sexually harassing three customers of his personal shopping service (jastip), prompting a mob to confront him. The university's task force has identified three victims and is currently investigating the case before deciding on any academic sanctions. The suspect was temporarily secured by Semarang police after being accosted by a crowd.

Coordinating Minister Warns Police Chiefs and Military Commanders Risk Their Posts Over Forest Fire Failures

Coordinating Minister for Political and Security Affairs Djamari Chaniago has issued a stern warning that regional police chiefs and military commanders will be removed from their posts if they fail to prevent forest and land fires. The government is intensifying coordination ahead of the El Niño phenomenon expected to begin in the third week of June. Officials noted recent progress in fire control but stressed the need for heightened vigilance and solid inter-agency cooperation.

Bank Indonesia's Stabilisation Policy Strengthens Rupiah Exchange Rate

Bank Indonesia Governor Perry Warjiyo announced that the rupiah strengthened to Rp17,730 per US dollar, supported by intensified foreign exchange interventions and higher SRBI rates. The central bank also introduced incentives such as a 10% reduction in hedging swap rates and expanded monetary instruments using offshore Chinese Renminbi. BI expressed confidence that the rupiah will remain stable and tend to strengthen, backed by attractive yields and solid economic growth prospects.

InJourney Airports Prepares Family Entertainment for School Holiday Travel Surge

State-owned airport operator InJourney Airports is rolling out family-friendly entertainment and enhanced services across its network to welcome an estimated 5.46 million passengers during the school holiday period. The initiative includes thematic decorations, children's activities, and commercial collaborations at seven major airports. Passenger traffic is projected to rise by 9.72% compared to normal days, with flights increasing by 6.25%.

UMY Vice-Rector Speaks Out After Police Intelligence Enters Campus

The Vice-Rector of Universitas Muhammadiyah Yogyakarta (UMY) has confirmed an incident where a plainclothes police intelligence officer entered the campus following a student demonstration. The situation was resolved peacefully through dialogue between students, university leadership, and the police, who stated the officer was monitoring the safe return of protesters.

Significant Growth: BI Governor Says Rupiah-Renminbi LCT Hits US$13 Billion by End of April 2026

Bank Indonesia Governor Perry Warjiyo reported that bilateral local currency transactions between the rupiah and renminbi surged to US$13 billion in the first four months of 2026, nearly matching the full-year 2025 total of US$18 billion. The rapid growth underscores efforts to reduce reliance on the US dollar in trade and investment between Indonesia and China. Both central banks plan to further promote the scheme, aligning with China's renminbi internationalisation strategy.

Hundreds of Students Rally at NTB Governor's Office, Demand Free Nutritious Meal Programme Be Halted

Hundreds of students in West Nusa Tenggara protested at the governor's office, demanding a total evaluation of the national Free Nutritious Meal (MBG) programme, which they claim is burdening state finances and disrupting education. The demonstrators also highlighted local crises including dilapidated schools, rising sexual violence, and the commercialisation of higher education. The head of the provincial MBG task force welcomed the criticism as a form of healthy external oversight.

PDIP Hits Back at PKB: Mind Your Own Party

The Indonesian Democratic Party of Struggle (PDIP) has sharply rebuked the National Awakening Party (PKB) for questioning its political stance. PDIP official Deddy Sitorus argued that the party's role as a balancing force is an internal decision and challenged PKB's Jazilul Fawaid to better understand Indonesia's presidential system. The exchange highlights ongoing friction over PDIP's position outside President Prabowo Subianto's governing coalition.

Navy Chief of Staff Urges Seskoal Graduates to Shun Hedonism and Blind Ambition

Admiral Muhammad Ali, Chief of Staff of the Indonesian Navy, warned graduates of the Naval Staff and Command School (Seskoal) against succumbing to hedonistic lifestyles and the blind pursuit of power. He stressed that such behaviour could erode their morality and nationalism. The ceremony saw 142 officers receive their Master's degrees and 129 complete their regular education programme.

Rupiah Weakens Amid Global Economic and Geopolitical Uncertainty

The Indonesian rupiah weakened against the US dollar, closing at Rp17,794, pressured by global economic and geopolitical uncertainties that boosted demand for safe-haven assets. Bank Indonesia raised its benchmark interest rate to 5.75 percent in a pre-emptive move to maintain inflation stability, despite inflation remaining within the target range.

'Spiritual Healer' Arrested in West Jakarta for Defrauding Elderly Woman with 'Aura Cleansing' Scam

Police in Kalideres, West Jakarta, have arrested a 48-year-old man who posed as a spiritual healer to defraud a 67-year-old woman. The suspect convinced the victim to remove her gold jewellery for a fake 'aura cleansing' ritual before stealing the items, resulting in a total loss of approximately Rp 33 million.

Former MDI President Director Sentenced to 5 Years for TaniHub Investment Corruption

Donald Surjana Wihardja, former president director of PT Metra Digital Investama (MDI), has been sentenced to five years in prison for corruption related to a failed investment in agri-tech firm TaniHub. The court found he approved a USD 20 million investment based solely on administrative data without verifying actual field conditions, causing substantial state losses. Three other MDI officials received sentences ranging from two to three years in the same case.