Indonesian Political, Business & Finance News

Archive: 18 June 2026

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LPEM UI Suggests BI Hold Interest Rate at 5.5 Percent

The University of Indonesia's LPEM recommends Bank Indonesia maintain its benchmark rate at 5.5 percent amid rising inflation and continued rupiah depreciation. The think tank views recent off-cycle rate hikes as appropriate but advises a pause to evaluate the impact of ongoing foreign exchange interventions and monetary tightening. Inflation rose to 3.08 percent in May, while foreign reserves have fallen by US$11.6 billion over five months.

Forging mental resilience with a skateboard

Research from the University of Southern California reveals that skateboarding's unique value lies in its repetitive cycle of failure and recovery, which builds neural pathways and resilience. Studies show the intense stimulation of balance and motor systems can calm the nervous system, particularly benefiting children with ADHD. Further findings indicate that mastering tricks after repeated failures literally retrains the brain's motivation system by activating dopamine pathways in the cerebellum.

Sahroni on KPK's Rp726 Billion Budget Increase Request: 'Ask for Rp5 Trillion, Don't Be Half-Hearted!'

The Corruption Eradication Commission (KPK) has requested an additional Rp762.30 billion for its 2027 budget, citing a 22% decline in its indicative ceiling. Deputy Chairman of House Commission III, Ahmad Sahroni, expressed bewilderment at the modest request and urged the KPK to ask for Rp5 trillion instead, referencing President Prabowo Subianto's earlier statement that the agency would receive 'whatever it needs'.

Pertamina SPBU Maintains Pertamax Quality and Enhances Customer Service

Pertamina Patra Niaga is upgrading facilities and tightening quality control for its Pertamax fuel across Indonesia. The company has renovated 1,920 petrol stations since 2023 and reaffirmed that non-subsidised fuel prices follow the government's market-based formula. These measures aim to improve customer experience and ensure product specifications, such as RON 92, are consistently met.

The Story of Hotel Sultan: Once Built by Ibnu Sutowo, Now Officially State-Owned

The Indonesian government has executed an eviction order for the Hotel Sultan complex, ending a decades-long dispute over state land in the Gelora Bung Karno area. The hotel, originally built in the 1970s as a state project during the oil boom, fell under private control by the family of former Pertamina chief Ibnu Sutowo. The legal battle over its management rights began after the building permit expired in 2003 and has now concluded with the state reclaiming the asset.

Prabowo reviews Indonesia's rare earth, workforce development plans

President Prabowo Subianto has reviewed plans to develop Indonesia's rare earth mineral sector and workforce training programmes during meetings at his Hambalang residence. The discussions included updates on international cooperation for rare earth exploration, which are critical for defence and electronics industries. The president continues to court foreign investment as part of a broader strategy to achieve technological independence and strengthen strategic sectors.

11 Iranian Tankers Break US Blockade Following Peace Agreement

Eleven Iranian tankers have successfully navigated past a US naval blockade following a peace agreement between Tehran and Washington. The breakthrough occurred after both nations signed a memorandum of understanding to end hostilities, including the immediate lifting of the maritime blockade. The deal paves the way for 60 days of negotiations on critical issues such as Iran's nuclear and missile programmes.

Agriculture Ministry Urged to Move Beyond 'Firefighting' When Palm Oil Prices Fall

The Indonesian Palm Oil Farmers Organisation (POPSI) has called on the Ministry of Agriculture to adopt a more strategic role in stabilising fresh fruit bunch (FFB) prices, rather than merely reacting to crises. Chairman Mansuetus Darto argues that fundamental governance reforms, including digital supply chain transparency and stronger farmer partnerships, are needed to address root causes. The criticism follows recent price volatility, which Darto attributes partly to policy uncertainty surrounding the proposed single-exporter scheme (DSI).

Customs and Military Foil Smuggling of 21 Kilograms of Methamphetamine at Indonesia-Malaysia Border

A joint operation by Indonesian Customs, the military, and the National Narcotics Agency has intercepted 21.4 kilograms of methamphetamine at an unofficial crossing near the Entikong border post in West Kalimantan. The drugs, disguised in green tea packets, were found in a vehicle driven by a Malaysian national from Johor Bahru. The seizure underscores the effectiveness of inter-agency cooperation in combating transnational narcotics trafficking along Indonesia's borders.

South Tangerang Lawyer Explains Reasons for Reporting Former UGM BEM Chair Tiyo Ardianto to Police

A lawyer in South Tangerang has filed a police report against former UGM student council chairman Tiyo Ardianto, alleging he insulted President Prabowo Subianto and Vice President Gibran Rakabuming Raka. The lawyer, Firdaus Oiwobo, accuses Tiyo of defaming the Free Nutritious Meal Programme (MBG) and incitement under the new Criminal Code. Police have confirmed the report and are currently investigating the matter.

IPOT Expands Financial Literacy Programme to Esports Community

PT Indo Premier Sekuritas (IPOT) is broadening its financial education outreach to the esports community, citing a gap between high financial product usage and low risk awareness among Indonesian youth. The initiative will be integrated into the Kapolda Jateng Cup 2026 esports tournament in Central Java. National data shows financial inclusion for 18-25 year olds has reached nearly 90 percent, while literacy lags at just over 73 percent.

Observer: Presidential Instruction on Irrigation Key to Safeguarding Food Security Against El Niño

An infrastructure expert has emphasised that the Presidential Instruction on irrigation is crucial for maintaining national food security in anticipation of El Niño. The policy aims to integrate newly built large-scale dams with irrigation networks to optimise water reserves for agricultural centres. The government is also coordinating cloud seeding and pump-based irrigation strategies to mitigate the impact of the prolonged dry season.

Over 1,000 Palestinians Killed Since Ceasefire Agreement

Health authorities in Gaza report that more than 1,000 Palestinians have been killed and over 3,000 wounded by Israeli forces since a ceasefire was reached in October 2025. The total death toll since October 2023 has now surpassed 73,000. Meanwhile, Hamas has expressed hope that ongoing negotiations in Cairo will lead to the implementation of the stalled ceasefire agreement, which includes provisions for disarmament and reconstruction.

Pertamina records 623 BOPD production from Salawati development well in Papua

PT Pertamina EP's Papua Field has successfully tested the Salawati-F2X development well in Southwest Papua, flowing 623 barrels of oil per day. The achievement is expected to contribute to national production targets and bolster Indonesia's energy security. The company emphasised the importance of synergy with local government and indigenous communities in sustaining upstream oil and gas operations in the region.

Pertamina Patra Niaga Continues to Enhance Comfort and Service Quality at Petrol Stations

PT Pertamina Patra Niaga is upgrading facilities at 1,920 petrol stations across Indonesia through its Retail Make Over programme to improve customer experience. The company also reaffirmed that non-subsidised fuel prices follow a government-set formula and are reviewed monthly. Quality control measures for products like Pertamax (RON 92) are being strengthened from terminal to forecourt.

Jakarta, Netflix team up to advance cinema city vision

The Jakarta administration has announced a strategic partnership with Netflix to develop the capital's film industry and creative economy. The collaboration includes plans for three Netflix productions in Jakarta and a human resource programme to upskill local talent. Officials expect the initiative to boost tourism, create jobs, and position Jakarta as a leading Southeast Asian film production hub.

Energy Minister Bahlil Makes Surprise Visit to Coordinating Minister Airlangga's Office

Minister of Energy and Mineral Resources Bahlil Lahadalia made an unannounced visit to the office of Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday. The meeting is believed to be linked to a scheduled discussion on national electricity issues. This follows Bahlil's recent disclosure of a coal supply shortfall for PLN's power plants, where 20 million tonnes remain uncontracted out of the 154 million tonnes required annually.

Proposal for Cheap Cigarettes for the Poor Deemed Shameful

A proposal by a member of Indonesia's House of Representatives to allow the production of cheaper cigarettes for low-income citizens has drawn sharp criticism from consumer protection advocates. The chairman of the Forum Konsumen Berdaya Indonesia argued the idea contradicts the fundamental purpose of excise duties, which is to curb consumption of addictive products. He warned the policy would send the wrong message and perpetuate poverty, as data shows poor households already spend a disproportionate amount of their income on tobacco.

Hotel Sultan Execution Turns Chaotic, Kivlan Zen Injured by Barbed Wire

The execution of a court order to reclaim the Hotel Sultan land in Jakarta turned unruly, resulting in injuries to former Kostrad Chief of Staff Kivlan Zen. The government asserts the land is a strategic state asset that had been controlled by PT Indobuildco for 50 years under questionable terms. President Prabowo Subianto has reportedly ordered the asset's return to be utilised for public prosperity.

Jakarta Now Has a CCTV System to Monitor Floods, Promising Faster Response

Jakarta's Water Resources Agency has integrated a CCTV network with the city's command centre to monitor floods in real time. The system, alongside the public 'Pantau Banjir' platform, aims to provide faster decision-making for operating sluice gates and pumps. Officials hope the technology will improve response speed and effectiveness during the rainy season.

Ministry of Religious Affairs Launches Islamic Short Film Competition on 'Sakinah-Maslahat' Families

Indonesia's Ministry of Religious Affairs has opened registration for the 2026 Islamic Short Film Competition, themed around the concept of a harmonious and beneficial family (Keluarga Sakinah-Maslahat). The initiative aims to harness digital media and creative talent to spread inspirational Islamic values and positive messages about family life. The competition offers tens of millions of rupiah in prizes and is open to all citizens without age or background restrictions.

Andra Soni Calls on Fathers to Collect Their Children's School Reports: A Symbol of Changing Parenting Culture

Banten Governor Andra Soni personally collected his son's school report as part of the 'Gemar' (Fathers Collecting Reports) movement, urging all fathers to be more involved in their children's education. The initiative, backed by an official provincial circular, aims to shift Indonesia's parenting culture from being mother-centric to a more collaborative and equal partnership. Officials from the National Population and Family Planning Board (BKKBN) highlighted that such paternal involvement is foundational for building quality families and a superior generation.

Pertamina Patra Niaga Affirms Pertamax Price to Be Evaluated Periodically, Non-Subsidised Fuel Prices Follow Market Mechanism

Pertamina Patra Niaga has confirmed that the price adjustment for its Pertamax series on 10 June 2026 adhered to the government's market price formula. The company stated that non-subsidised fuel prices are evaluated monthly based on economic parameters, while subsidised fuels like Pertalite and Biosolar remain unchanged. The recent adjustment reflected only 50% of the international market price gap to maintain competitiveness and protect domestic purchasing power.

Chronology of Elderly Man Found Dead Bound by Wire in Tangerang, Originating from a Foul Odour

An elderly man was discovered deceased, suspended by a wire around his neck from a fence in Tangerang after residents reported a foul smell. Police found no signs of violence on the body, and the victim's personal belongings, including cash and a mobile phone, were intact. Authorities suspect the man had been dead for four days prior to the discovery and are continuing their investigation.

Iran Confirms Signing of Digital MOU with US to End Conflict

Iran's Foreign Ministry has confirmed that President Masoud Pezeshkian and US President Donald Trump signed a digital memorandum of understanding aimed at ending hostilities. The virtual signing replaced a planned face-to-face ceremony in Switzerland, with Tehran arguing it would raise the 'cost of violation'. A second phase of negotiations is set to continue in Switzerland, with Iran stressing that a ceasefire in Lebanon is as critical as one involving Iran itself.

Traffic Police Chief: Over-Dimension and Over-Loading Vehicles Threaten Public Safety

The head of the Indonesian National Police Traffic Corps warns that over-dimension and over-loading vehicles are a major cause of high traffic fatality rates, framing the issue as a public safety crisis rather than a mere traffic violation. Speaking at a seminar in South Kalimantan, he outlined a holistic national blueprint targeting full enforcement by 1 January 2027. He stressed that economic profit must never outweigh human life on public roads.

SOKSI Signs MoU with Ministry of P2MI to Protect Migrant Workers

The Indonesian organisation SOKSI has signed a memorandum of understanding with the Ministry of Protection of Indonesian Migrant Workers to bolster government efforts in safeguarding and empowering migrant workers. The partnership aims to improve public communication of government policies and prevent misunderstandings. It aligns with President Prabowo Subianto's vision of providing comprehensive protection and enhancing the welfare of Indonesian migrant workers, who are increasingly skilled and formally employed.

Tehran releases US-Iran Memorandum of Understanding

Iran has published the text of a Memorandum of Understanding with the United States outlining an immediate and permanent cessation of military operations, including in Lebanon. The agreement commits both sides to mutual respect for sovereignty, negotiations towards a final accord within 60 days, and the lifting of US naval blockades and sanctions. It also includes provisions for a $300 billion reconstruction fund for Iran and reaffirms Iran's commitment not to develop nuclear weapons.

Israeli Public Furious, Demands Netanyahu Resign Over Failure to Combat Iran, Hamas, and Hezbollah

A political firestorm has erupted in Israel following the announcement of a US-Iran agreement, with widespread anger directed at Prime Minister Benjamin Netanyahu. Opposition figures and media commentators have labelled the deal a dangerous strategic setback that could erase military gains, prompting open calls for the government to step down. Far-right ministers have also rejected the accord, asserting that Israel is a sovereign nation not bound by decisions made by others.

High School Student in South Jakarta Dies After Falling from Motorcycle and Being Run Over by Bus

A female high school student in Bulungan, South Jakarta, died after her motorcycle handlebar snagged a low-hanging cable, causing her to fall and be run over by a passing school bus. The incident occurred early Thursday morning and is currently under investigation by the South Jakarta traffic police. The local education agency has confirmed the accident but deferred further comment to the police.

Execution of Former Hotel Sultan Eviction Turns Chaotic, Officers Deploy Water Cannon

The court-ordered eviction of the former Hotel Sultan in Jakarta's Gelora Bung Karno complex descended into chaos on Thursday as protesters threw objects at officers, prompting security forces to use a water cannon to disperse the crowd. The execution enforces a Central Jakarta District Court ruling that the land is a state asset under the Ministry of State Secretariat, never sold or transferred to PT Indobuildco, whose building rights had expired. The operation was led by court bailiffs with support from government officials, legal representatives, and security personnel.

Indonesian Consumers Grow Pessimistic About Job Prospects, Call for Internship and Cash-for-Work Programmes

A Bank Indonesia survey reveals declining consumer confidence in job availability and current incomes as of May 2026. Economists urge the government to implement short-term solutions like cash-for-work schemes and a national internship programme, while also stressing the need for structural reforms to strengthen investment and the real sector.

OJK Halts Stock Scam by Universal Peak and Illegal Lending Services by BAFI Group

Indonesia's Financial Services Authority (OJK) task force has shut down two fraudulent operations: Universal Peak, which ran a fake stock investment scheme, and BAFI Group, which illegally offered debt resolution services. Both entities were found to be operating without the necessary licences and have had their digital access blocked, with further legal action to follow.

Joint Fighter Jet Project Collapses, Europe Faces Defence Dilemma

The ambitious Franco-German Future Combat Air System (FCAS) programme has effectively collapsed, dealing a major blow to European strategic autonomy. The failure, attributed to industrial rivalries and diverging military requirements, casts serious doubt on the parallel joint tank project, the Main Ground Combat System (MGCS). The breakdown highlights a broader European defence dilemma as nations seek to reduce reliance on the United States while struggling to reconcile national industrial interests.

BMKG: Jambi still at risk of rain over the coming week

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has warned that Jambi Province will likely experience continued rainfall over the next week. The agency clarified that the current rain is a natural phenomenon, not linked to the government's recent weather modification operations. Residents are advised to remain vigilant as weather conditions may change rapidly, affecting travel and outdoor activities.

Indonesia and Japan Strengthen Human Resource Development

Indonesia's Ministry of Primary and Secondary Education is backing a full scholarship programme by the Fast Retailing Foundation, enabling nine Indonesian high school students to study at Japanese universities from autumn 2026. The initiative aims to broaden access to higher education and deepen bilateral cooperation in human resource development. The scholars, selected from over 600 applicants across Indonesia, will pursue diverse fields including aerospace engineering, public policy, and economics.

Bogor Police Build Eight Homes for Residents Using Internal Donations

The Bogor Resort Police have constructed eight homes for residents under the 'Rumah ASRI' programme, funded entirely by voluntary contributions from police personnel. The initiative, marking the 80th Bhayangkara Day, aims to provide decent housing as a basic need to improve health, productivity, and quality of life. Police officers collaborated with local communities and the military to complete the second phase of the project across multiple sub-districts.

Courier Smuggling Rp 5 Billion in Meth from Malaysia Arrested in Riau

An Indonesian man working as an informal courier was arrested at Dumai Port in Riau after customs officers discovered 5.09 kilograms of methamphetamine concealed in coconut sugar boxes. The drugs, valued at approximately Rp 5 billion, were being transported from Malaysia to Aceh. Authorities estimate the seizure prevented potential substance abuse affecting around 25,000 people.

Batam Weather Forecast for 18 June 2026: Beware of Sudden Rain

The Meteorology, Climatology, and Geophysics Agency (BMKG) has issued a weather forecast for Batam on 18 June 2026, warning of potential sudden heavy rain. Despite a clear morning, significant weather changes are expected from midday, driven by high surface temperatures and atmospheric moisture.

Indonesia's Coal Reference Prices (HBA) for Second June 2026 Period Rise Across the Board

Indonesia's Ministry of Energy and Mineral Resources has set the Coal Reference Prices (HBA) for the second period of June 2026, with all four coal categories recording price increases compared to the first period. The new benchmarks, detailed in Ministerial Decree No. 253 of 2026, cover coal grades ranging from 3,400 GAR to 6,322 GAR. The uniform uptick reflects ongoing dynamics in the global coal market and domestic pricing policy.

Benefits of Free Nutritious Meal Programme: Fewer Hungry Students and Improved Child Nutrition

The Free Nutritious Meal (MBG) programme has significantly reduced the number of students attending school hungry, from 56 percent to 16 percent, according to Bappenas research. The initiative has also boosted overall nutritional quality, with fruit consumption rising from 26 to 84 percent and animal protein intake increasing from 65 to 90 percent among students.

Trade Minister confirms Minyakita ceiling price remains unchanged at Rp15,700 per litre

Trade Minister Budi Santoso has reaffirmed that the highest retail price (HET) for the subsidised cooking oil brand Minyakita will stay at Rp15,700 per litre. The government is instead focusing on strengthening distribution through state-owned food enterprises Bulog and ID FOOD to improve market access. Producers are also being urged to boost output of alternative affordable brands to expand consumer choice.

Prime Agri Resources Launches New Corporate Identity

PT Prime Agri Resources Tbk has unveiled a new corporate identity, marking its transformation from a conventional commodity producer into an integrated agribusiness platform. The move aims to enhance traceability, operational efficiency, and long-term resilience across its entire supply chain. CEO Budi Setiawan Halim stated the integrated approach is increasingly relevant to meet growing demand for transparently traceable commodities in Indonesia's evolving agronomic landscape.

US-Iran Peace: House Commission VI Urges Government to Review Fuel Price Adjustments

Following a peace agreement between the United States and Iran that has eased geopolitical tensions and lowered global oil prices, Indonesia's House Commission VI has called on the government to review domestic fuel prices. Deputy Chairman Eko Patrio welcomed the stabilisation but cautioned that any adjustment should consider whether the oil price decline is long-term, along with other factors like the rupiah exchange rate and distribution costs.

Video: Tehran Considers Deal by Iranian and US Presidents

Iran's foreign ministry indicates a Swiss MoU signing could be conducted directly by Presidents Pezeshkian and Trump. The reported US-Iran peace deal involves $300 billion in private funding to boost investment in Tehran, with over half already disbursed.

Coal Barge Leak Turns Pangandaran's Sukaresik Beach Black

A leaking coal barge carrying 80,000 tonnes of coal has run aground off Sukaresik Beach in Pangandaran, West Java, causing the shoreline and seawater to turn black. The vessel was en route from Palembang to Cilacap when it began leaking and eventually beached near a turtle conservation area, raising serious environmental pollution concerns. Local authorities are guarding the site as coal debris spreads along the coast.

Pertamina Reveals 50 Percent Gap in Pertamax Price Hike

Pertamina has clarified that the recent increase in Pertamax fuel prices, effective 10 June 2026, follows government-set market mechanisms. The state-owned energy firm stated the adjustment was made with a 50 percent differential from market prices to keep the non-subsidised fuel more competitive than similar products in neighbouring ASEAN countries. Evaluations of non-subsidised fuel prices will continue on a monthly basis while considering domestic economic conditions.

Ministry of Religious Affairs: Religious counsellors must utilise social media for dakwah

The Ministry of Religious Affairs has urged Islamic religious counsellors to embrace social media as a platform for dakwah and public education. Director General Abu Rokhmad emphasised that counsellors should become 'influencers of goodness' promoting moderation and social awareness online. The initiative aligns with broader efforts to professionalise religious services and develop specialist competencies among counsellors.

Scenes of Chaos During Hotel Sultan Execution

The execution of a court order to vacate Hotel Sultan in Jakarta's Gelora Bung Karno complex turned violent as supporters resisted police and military personnel. Authorities eventually dispersed the crowd using water cannons and secured the state-owned asset, following a directive from President Prabowo Subianto to reclaim government properties.

Jakarta's 2026 SPMB Registration Opens, Easier and Free of Charge

The Jakarta Provincial Government has opened registration for the 2026/2027 New Student Admission System (SPMB), offering a total capacity of 245,980 places across public schools, partnership schemes, and a free private school programme. The initiative aims to broaden access to quality education through expanded collaboration with private schools, backed by a budget of Rp253.6 billion. Officials emphasised that the process is designed to be objective, transparent, and inclusive, with online registration making it more practical for working parents.