Indonesian Political, Business & Finance News

Archive: 18 June 2026

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Government Absorbs Rp 9.45 Trillion from State Sukuk Auction

The Indonesian government raised Rp 9.45 trillion from its latest sharia bond auction, falling short of its Rp 12 trillion target despite receiving Rp 19.14 trillion in bids. The weighted average yield rose to between 6.75% and 7.21%, reflecting higher borrowing costs compared to the previous auction. The proceeds will help finance the 2026 state budget deficit, which is targeted at Rp 689.1 trillion.

Economist values geothermal projects as attractive for global funding

An economist from CORE Indonesia states that Indonesia's geothermal projects are increasingly attractive to global investors focused on clean energy, particularly those with clear prospects and mature portfolios. Three Pertamina Geothermal Energy projects have been included in the government's Green Book 2026, potentially unlocking international financing. The US dollar-denominated revenue scheme with PLN and Indonesia's vast geothermal potential further enhance the sector's appeal for sustainable energy transition funding.

Rupiah weakens following hawkish statement from the Fed

The Indonesian rupiah depreciated against the US dollar on Thursday morning, influenced by a hawkish stance from the Federal Reserve that dampened hopes for a rate cut this year. The Fed held its benchmark rate steady, while Bank Indonesia is expected to maintain its own reference rate at its Board of Governors meeting today.

Indonesia to Trial New E20 Petrol, Targeting 2028 Rollout

Indonesia's Energy Ministry is preparing road tests for E20 petrol, a fuel blend containing 20% bioethanol, with a target to introduce it to the market by 2028. The initiative is part of a phased bioethanol mandate, starting with E5 implementation by December 2026 and E10 by early 2027. The government is coordinating with the automotive industry and state energy firm Pertamina to ensure infrastructure readiness.

Attention High School/Vocational Graduates! These 5 Job Vacancies Offer Salaries Up to Rp8 Million

Several companies in Indonesia are offering job opportunities for high school and vocational school graduates, with positions spanning retail, administration, and logistics. Some roles, such as a Beauty Advisor position in South Jakarta, provide salaries ranging from Rp6 million to Rp8 million per month plus benefits. The vacancies highlight a pathway for non-degree holders to enter the professional workforce with career development prospects.

Who Owns Hotel Sultan Jakarta as Its Land Faces Execution Today?

The former Hotel Sultan site in Jakarta's Gelora Bung Karno complex is being forcibly vacated today, with over 3,100 security personnel deployed. The execution follows a 26-year legal dispute between the state and PT Indobuildco, owned by Pontjo Sutowo, over expired land rights. Supporters gathered to protest the eviction, claiming it violates the rights of indigenous entrepreneurs.

Trump Threatens to Attack Iran Again if Peace Deal Not Honoured

US President Donald Trump has warned of renewed military strikes against Iran if Tehran fails to fully comply with a recently signed peace memorandum. The 14-point agreement, announced during the G7 summit, extends a ceasefire for 60 days to allow negotiations on a final deal to formally end the war. Trump acknowledged that the enormous economic impact of the conflict forced him to seek a swift end to hostilities.

Women's Alliance Marches with Kitchenware, Demands End to Free Nutritious Meals Programme

The Indonesian Women's Alliance staged a protest in Central Jakarta, voicing frustration over rising staple food prices, job losses, and the government's Free Nutritious Meals (MBG) programme. Demonstrators, many dressed in pink and carrying kitchen utensils, argued that fuel price hikes have triggered a domino effect, squeezing household budgets and leading to layoffs of domestic workers. The alliance is calling for lower food prices, decent job creation, and a thorough evaluation of the MBG policy.

Criticism Over Unstrategic Betawi Village Location at Jakarta Fair, Here's What Pramono Says

The placement of Kampung Betawi at the Jakarta Fair has drawn criticism for being in a less strategic location, limiting its exposure compared to major commercial tenants. Jakarta Governor Pramono Anung responded by clarifying that the provincial government was not involved in the technical decisions regarding the site's layout. He stated that such decisions, including ticket pricing, are entirely the responsibility of the event's management.

Sony Sonjaya Arrives at AGO, Ready to Speak on MBG Corruption?

Former Deputy Head of the National Nutrition Agency (BGN), Sony Sonjaya, arrived at the Attorney General's Office for questioning as a suspect in the alleged corruption of the Free Nutritious Meal (MBG) programme. His lawyer stated that Sonjaya feels scapegoated and is prepared to reveal the masterminds behind the scheme, having applied to be a justice collaborator. The case involves the procurement and management of the MBG programme for the 2025-2026 fiscal year.

Trump Thanks Xi Jinping and Putin for Neutrality During Iran War

US President Donald Trump expressed gratitude to Chinese President Xi Jinping and Russian President Vladimir Putin for their neutrality during the conflict with Iran. The acknowledgment came as both the US and Iran confirmed signing a peace agreement to end the war, with a two-month negotiation period set to follow. The deal, signed electronically, includes the reopening of the Strait of Hormuz as an initial step.

As Wallets Dry Up, Is IDR 5.4 Million in Social Assistance the Solution?

Indonesian consumer confidence is weakening, with Bank Indonesia's indices showing declining current income and expectations. While the government is considering a IDR 5.4 million cash transfer to compensate for fuel price hikes, economists argue that structural reforms to create jobs and improve wages are a more effective long-term solution than temporary direct cash assistance.

UMY develops BSF maggot technology to process campus organic waste

Universitas Muhammadiyah Yogyakarta (UMY) is pioneering the use of Black Soldier Fly (BSF) maggots to biologically process wet organic waste from campus canteens and businesses. The initiative complements existing composting of dry organic matter, with the university aiming to serve as a model for sustainable waste management. The programme is part of a broader green campus strategy that includes single-use plastic restrictions, solar energy, and planned electric shuttle buses.

Merah Putih Cooperative Manager Selection Committee Scraps Rp 100 Million Penalty

The national selection committee for the Merah Putih Cooperative has removed a Rp 100 million penalty clause for candidates who withdraw, aiming to allow participants to focus fully on capacity building. The penalty was originally imposed on those resigning before completing a two-year service bond. Withdrawn candidates who passed are now invited to reconfirm their participation via the official portal.

Trump Signs US-Iran Peace Agreement: 'This Was Not Easy'

US President Donald Trump has signed a memorandum of understanding for a peace agreement with Iran at the Palace of Versailles, witnessed by French President Emmanuel Macron. Macron stated the deal marks a step towards reopening the Strait of Hormuz to global shipping and could lead to lower energy prices. The signing followed a G7 summit in France, with Iran's president also signing the document the same day.

Pramono to Inaugurate JIS Bridge and Break Ground on 'Donut' Bridge for Jakarta's Anniversary

Jakarta Governor Pramono Anung has announced a series of infrastructure inaugurations and groundbreakings to mark the city's 499th anniversary. Key projects include the groundbreaking for the Dukuh Atas pedestrian deck and the inauguration of a bridge connecting Ancol to Jakarta International Stadium. The celebrations will also feature free public transport and complimentary access to city-owned attractions for Jakarta ID card holders.

Modi reports 'significant progress' in US-India trade talks after Trump meeting

Indian Prime Minister Narendra Modi announced significant headway in bilateral trade negotiations with the United States following a meeting with President Donald Trump at the G7 summit in Evian. Both leaders expressed optimism about finalising an interim agreement, with US Trade Representative Jamieson Greer set to visit India for further talks. The discussions aim to resolve tariff and market access issues as part of a broader target to boost bilateral trade to US$500 billion by 2030.

Unrest at Hotel Sultan, Several Guests Panic and Leave the Hotel

Guests at Hotel Sultan in Jakarta's GBK complex were caught off guard and panicked during an execution process on Thursday, prompting police to escort them from the premises. The PPKGBK is continuing to sweep the hotel area for data collection following the enforcement action.

Sony Sonjaya's Legal Counsel Denies Elza Syarief Resigned

The legal team for former Deputy Head of the National Nutrition Agency (BGN) Sony Sonjaya has refuted claims by lawyer Elza Syarief that she resigned, stating her power of attorney was formally revoked by the client. The team clarified that the revocation does not affect the ongoing defence against corruption charges at the Attorney General's Office. They expressed surprise at Syarief's allegations of dishonesty, asserting that all of Sony's statements have been transparently recorded in the official investigation report.

ICC 2026: An Effort to Drive Indonesia's Human Transformation

The Indonesia Coaching Conference (ICC) 2026 is set to take place in Jakarta on 27 June, aiming to place human development at the centre of technological and business disruption. The event will gather over 30 national and international speakers, including government ministers and corporate leaders, to share practical coaching strategies. It focuses on five pillars of transformation—personal, leader, organisation, business, and future—to strengthen Indonesia's workforce readiness and leadership.

Deputy Minister of Creative Economy Seeks Local IP Marketing Through Cross-Sector Collaboration

Deputy Minister of Creative Economy Irene Umar has emphasised the importance of cross-sector collaboration to strengthen the creative industry's value chain, ensuring Indonesian creators' intellectual property (IP) becomes a sustainable economic asset. The ministry is partnering with Kisai Entertainment to develop the local IP ecosystem through the Jakarta Webtoon Festival 2026. The initiative aims to expand market reach, boost global competitiveness, and attract international partners from Korea, Japan, and the United States.

Sony Sonjaya Dashes into AGO Building, Refuses Comment Ahead of MBG Corruption Case Examination

Former Deputy Head of the National Nutrition Agency (BGN), Sony Sonjaya, refused to answer questions from journalists as he arrived for questioning at the Attorney General's Office regarding alleged corruption in the Free Nutritious Meals Programme. He is one of five suspects being investigated for suspected price mark-ups in procurement projects, including electric motorcycles and tablets. The case involves charges under the new Criminal Code and anti-corruption laws related to unlawful enrichment involving corporations.

Minister urges young people to critically confront social media algorithms

Minister of Communication and Digital Affairs Meutya Hafid has called on Indonesia's youth to sharpen their digital awareness to avoid being manipulated by social media algorithms. She warned that algorithmic personalisation can distort perceptions of reality and democracy by amplifying selective viewpoints. The message was delivered during the launch of a book on digital democracy at IPB University.

Joint Security Forces Secure Hotel Sultan, Sympathiser Crowd Beaten Back

Indonesian police and military personnel have taken control of the Hotel Sultan complex in Jakarta after clashes with sympathisers resisting a court-ordered eviction. The operation turned chaotic when the crowd refused to disperse and attacked officers with wooden sticks and plastic bottles, prompting police to deploy water cannon. Authorities are now securing the premises and inventorying assets inside the hotel.

Dua Pengumuman Penting Hantui IHSG, Ini Saran buat Investor

Indeks Harga Saham Gabungan (IHSG) melemah signifikan pada sesi pertama perdagangan Kamis, dipicu antisipasi pasar terhadap dua pengumuman penting: keputusan suku bunga Bank Indonesia dan hasil review MSCI. Sinarmas Sekuritas memperkirakan IHSG berisiko turun 2-3% dan menyarankan strategi wait and see jika terjadi panic selling. Sementara itu, Stockbit Sekuritas menyoroti bahwa review MSCI akan menentukan apakah pembekuan penambahan konstituen dicabut dan apakah status pasar Indonesia tetap sebagai emerging market atau diturunkan menjadi frontier market.

Police: No Signs of Violence on Elderly Man Found Dead with Wire Around Neck

An elderly man identified as S (75) was found dead with a wire tied around his neck in Tangerang City. Police stated there were no signs of physical violence on the body, and his belongings were found intact. The body is believed to have been at the scene for four days before its discovery.

Kevin Warsh Shows His Teeth, World Anxious Over The Fed's New Direction

The Federal Reserve held interest rates steady under new Chair Kevin Warsh, but his unexpectedly hawkish signals rattled global markets. Warsh declined to submit personal rate projections, launched five internal task forces, and drastically shortened the Fed's policy statement, marking what analysts called a new era of less predictable US monetary policy.

77 Percent of MSMEs Operate Without Legal Status, Government Provides Assistance

Approximately 77 percent of Indonesia's micro, small, and medium enterprises (MSMEs) still operate informally without official legal status, prompting the government to intensify assistance programmes. The Ministry of MSMEs is consolidating licensing, certification, financing access, and business protection into integrated services through initiatives like the Festival of Ease and Protection for Micro Enterprises. Officials stress that formalising these businesses is critical to unlocking legal certainty, protection, and broader economic growth.

Qodari Responds to Ex-UGM BEM Chair Tiyo Ardianto's Tracking Device Allegations: 'That's Obsolete!'

Muhammad Qodari, head of the Government Communication Agency, has dismissed allegations of physical GPS trackers being planted on a former student leader's vehicle, calling such methods outdated. He suggested modern tracking relies on software, and the discovery of a physical device could indicate amateur involvement or even an attempt to sow discord. Qodari urged the public to respect the presumption of innocence and called for a thorough police investigation.

Forging Indonesia's future as a global gold reserve hub

Amid global economic uncertainty, central banks are diversifying gold storage away from traditional hubs, creating an opportunity for Indonesia. As a major gold producer with a large, stable economy, Indonesia could develop into an international gold storage centre, but it must first strengthen Bank Indonesia's credibility, build world-class vault infrastructure, and establish a robust legal and financial ecosystem. Success would enhance the nation's global financial standing, lower borrowing costs, and bolster the rupiah.

House of Representatives Appreciates BP Batam's Digital Innovations: MANTAB and Investment Dashboard

Indonesia's House of Representatives (DPR RI) has praised the Batam Concession Agency (BP Batam) for launching two digital platforms aimed at boosting employment and investment. The Manajemen Talenta Batam (MANTAB) system matches local workers with industry needs, while the Investment Dashboard provides real-time monitoring of investment realisation. BP Batam's leadership views these innovations as key to strengthening Batam's competitiveness and contributing to the national economy.

DKI Jakarta Optimises SME Development Through Jakpreneur

The Jakarta provincial government is intensifying its support for small and medium enterprises through the Jakpreneur ecosystem to boost economic resilience. The initiative focuses on digitalisation and achieving global standards for local products. As of mid-June 2026, over 421,000 members have joined the programme, with the majority operating in the culinary sector.

Selection Committee Scraps Rp100 Million Penalty Clause in Village Cooperative Manager Recruitment

The National Selection Committee has removed a controversial Rp100 million financial penalty from the recruitment process for managers of the 'Merah Putih' Village Cooperatives and Fishermen's Villages. The adjustment aims to make the government's priority programme more accessible and responsive to public feedback. Participants who previously withdrew due to the clause are now invited to rejoin the selection process.

MPR Leadership Urges ESDM to Strengthen 2027 Budget for Renewable Energy Sector

Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno has called on the Ministry of Energy and Mineral Resources (ESDM) to increase its 2027 budget allocation for new and renewable energy (EBT). He noted the current EBT budget of roughly Rp1.5 trillion is significantly smaller than the oil and gas and electricity sectors, and argued a boost is needed to demonstrate Indonesia's seriousness in accelerating its energy transition. Soeparno also commended the ministry's budget commitment to rural electrification and free electricity installation programmes aimed at achieving energy equity across the archipelago.

Lost for a Century, Rare Bird Finally Found in Indonesia

The Blue-fronted Lorikeet, a bird species endemic to Indonesia and unseen for 100 years, has been rediscovered on Buru Island. An expedition in April 2026 successfully observed and photographed the bird, highlighting both the resilience of species in remote habitats and the threats posed by deforestation and mining.

Chaos During Hotel Sultan Execution, Crowd Sprayed with Water Cannon

The execution of a land seizure order at Hotel Sultan in Jakarta's GBK complex turned chaotic on Thursday as security forces clashed with a resisting crowd. Police deployed water cannon and shields after being pelted with stones and bottles, with over 3,100 joint personnel mobilised to secure the operation.

Rupiah Weakens Today, Indef: Market Awaits BI RDG Outcome

The rupiah weakened by 0.53% against the US dollar on Thursday morning, influenced primarily by market participants adopting a wait-and-see approach ahead of Bank Indonesia's Board of Governors Meeting. An economist from Indef noted that while global factors like US dollar strength and geopolitical uncertainty persist, the rupiah's direction post-meeting will hinge on the central bank's policy credibility and communication. Sustained strengthening will require robust monetary policy, increased export foreign exchange inflows, and improved investor confidence in the domestic economy.

Oil Prices Continue to Slide

Global oil prices extended their decline on Thursday, with Brent crude falling 1.6% to US$78.28 per barrel, driven by a provisional US-Iran agreement that could restore Iranian exports and secure the Strait of Hormuz. The potential influx of supply, coupled with weakening demand signals from China, has pushed Brent down over 10% since early June.

Complete list of gold prices for three brands at Pegadaian this Thursday

Gold prices for UBS, Antam, and Galeri24 at Pegadaian all declined on Thursday morning compared to the previous day. The article provides a detailed breakdown of prices per gram and for various quantities up to one kilogram. This reflects daily fluctuations in the domestic precious metals market.

Former Deputy Head of National Nutrition Agency Sony Sonjaya Questioned by AGO Over Justice Collaborator Request

Sony Sonjaya, former deputy head of the National Nutrition Agency (BGN) and a suspect in the alleged corruption of the Free Nutritious Meals programme, was questioned by the Attorney General's Office (AGO) on Thursday. The examination focused on verifying evidence related to his application to become a justice collaborator, through which he claims to have named over 20 other individuals involved. Investigators are cross-referencing Sony's purported evidence with their own before deciding on his collaborator status.

Gibran vows to improve MBG governance

Vice President Gibran Rakabuming Raka has pledged to strengthen governance of the national priority MBG programme, emphasising that every rupiah must be spent properly and free from corruption. Speaking before a working visit to five provinces, he stressed the need for corrective measures to maintain public trust and confirmed governance reforms will extend to other initiatives like the Red and White Village Cooperatives. The Vice President also invited five university students to join the trip to provide input on policy implementation.

Container Backlog at Tanjung Priok Port Begins to Ease

The backlog of thousands of containers awaiting customs inspection at Tanjung Priok Port in Jakarta has significantly reduced, falling from 3,100 in May to around 700 by mid-June. Customs officials attribute the improvement to additional inspection sites, extended working hours, and enhanced coordination with logistics stakeholders. The measures aim to expedite the flow of goods through Indonesia's busiest port.

Security Forces Secure Hotel Sultan, Protesters Retreat

Indonesian security forces have successfully occupied the Hotel Sultan in Jakarta after clashing with protesters who opposed an execution order. The operation involved pushing back demonstrators who threw stones and bottles, with police using water cannons and making arrests. The incident marks a significant enforcement action at a prominent Jakarta property.

Indonesian Deputy Trade Minister and Uzbek Deputy PM Explore Export Opportunities for Women's MSME Products

Indonesia's Deputy Trade Minister Dyah Roro Esti and Uzbekistan's Deputy Prime Minister Zulaykho Mahkamova have discussed boosting exports for women-led micro, small, and medium enterprises (MSMEs). The talks in Tashkent focused on knowledge-sharing programmes and market access to help female entrepreneurs penetrate each other's markets. Both parties identified products such as tea, chocolate, modest fashion, and cosmetics as having strong bilateral trade prospects.

State Secretariat Considers Fate of Ex-Hotel Sultan Employees After Asset Recovery

The Indonesian government has formally reclaimed the former Hotel Sultan complex in Jakarta following a two-decade legal dispute, with the State Secretariat now assessing how to accommodate the hotel's existing workforce. The asset, originally acquired for the 1959 Asian Games, was returned after a Central Jakarta District Court ruling ordered the eviction of long-time operator PT Indobuildco. Officials confirmed the land and buildings are state property and will be repurposed for public use.

Direct Wuhan-Indonesia Shipping Route Strengthens Central China Connectivity

The direct river-sea shipping route between Wuhan and Indonesia has surpassed 100 voyages since its launch in November 2024, transporting 620,000 tonnes of cargo valued at US$1.4 billion. The route, primarily serving GEM's nickel processing and new energy projects, has slashed delivery times by over a week and cut logistics costs significantly. This corridor now accounts for more than half of trade between Hubei Province and Indonesia, boosting economic ties under the Belt and Road Initiative.

Electric Motorcycle Warehouse in Bogor Sealed by Attorney General's Office Over MBG Corruption Case

A warehouse storing electric motorcycles in Sentul, Bogor, has been sealed by the Attorney General's Office as part of an investigation into alleged corruption in the management of the Free Nutritious Meal (MBG) programme. The facility, linked to the National Nutrition Agency (BGN), remains operational externally despite the seal, with staff still present. Five suspects, including former BGN officials, have been named in the case.

KPK Investigates Asset Purchases by Suspects in Manpower Ministry K3 Extortion Case

Indonesia's Corruption Eradication Commission (KPK) is tracing asset acquisitions linked to suspects in an alleged extortion scheme involving workplace safety certificates at the Ministry of Manpower. A private sector witness was questioned regarding purchases made by the suspects. The case has expanded to include 14 individuals, including a deputy minister and several former high-ranking ministry officials.

Eco-Luxury Jakarta Discussion Encourages Youth to Switch to Piped Water and Bring Tumblers

A public discussion in Jakarta addressed the city's ecological threats, focusing on land subsidence from groundwater exploitation and high bottled water consumption. Speakers urged young people to adopt sustainable habits like using piped water and carrying reusable tumblers. The event highlighted PAM JAYA's efforts to expand piped water access and install public water refill stations.

Deputy Minister Says Hotel Sultan Eviction Is Prabowo's Order: We Must Reclaim Government Assets

Deputy State Secretary Minister Bambang Eko Suhariyanto stated that the execution of the Hotel Sultan eviction in Jakarta is a direct order from President Prabowo Subianto. The government is reclaiming the strategic asset, which was originally acquired in 1959 for the Asian Games, after it was controlled by PT Indobuildco for 50 years under questionable circumstances. The reclaimed land is to be used for the maximum prosperity and welfare of the people.