Indonesian Political, Business & Finance News

Archive: 18 June 2026

Showing 1,501-1,550 of 1,644 articles

Bahlil Admits PLN Faces Coal Supply Constraints Due to Low Purchase Price

Energy Minister Bahlil Lahadalia has acknowledged that state electricity firm PLN is struggling to secure medium-calorie coal because the mandated domestic price is too low for suppliers. A special procurement team involving PLN, the Minerals and Coal Directorate, and the state audit agency has been formed to resolve the shortfall. PLN requires 154 million tonnes annually, but around 20 million tonnes remain uncontracted as producers baulk at the $70 per tonne DMO price compared to the $121.83 benchmark.

List of University Student Councils Whose Names Were Misappropriated by BEM Bersatu

Several university student councils have publicly denied involvement with the newly formed BEM Bersatu alliance after their institutional identities were allegedly misappropriated. The alliance, which had accused former UGM student leader Tiyo Ardianto of political party connections, included individuals claiming to represent various faculties. The affected student bodies have clarified that the named individuals are either alumni, non-members, or acting in a purely personal capacity without any institutional mandate.

Takaful in the Halal Value Chain

Indonesia's Takaful sector remains a structural bottleneck within the global halal market, hindered by fragmentation and a lack of independence from conventional insurers. The mandatory spin-off of Sharia business units is framed not as a regulatory burden but as a prerequisite for integrating Takaful directly into the halal supply chain. Embedding Sharia-compliant risk management across the entire value chain could strengthen export credibility, expand the premium base, and extend micro-Takaful to vulnerable MSMEs.

Hanania Travel Case: 1,286 Victims with Losses Reaching IDR 35 Billion

The investigation into alleged fraud by Hanania Travel has identified 1,286 victims who collectively lost IDR 35.34 billion for unfulfilled umrah and hajj pilgrimages. Victims reportedly paid deposits but never received their official hajj queue numbers, as the funds were allegedly not transferred to the Hajj Financial Management Agency (BPKH). A deputy chairman of the House of Representatives Commission III has called for the maximum punishment for the travel firm's boss, who has been named a suspect.

KPK Examines Customs Subdivision Head to Probe Budiman's Employment Status

Indonesia's Corruption Eradication Commission (KPK) has questioned a Customs and Excise official to investigate the employment status of suspect Budiman Bayu Prasojo. The examination is part of an ongoing probe into alleged corruption involving the import of counterfeit goods and illicit payments within the Directorate General of Customs and Excise. The case has already seen six other suspects named, with some facing trial and testimony emerging about substantial bribes paid to senior officials.

Government Prepares Non-Cash Stimulus, Here Are the Recipients!

The Indonesian government is preparing a non-cash stimulus package targeted at lower-middle-class citizens, specifically those in decile 4 and below. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed the aid will not be in the form of direct cash transfers, which are reserved for the poorest, and will instead include programmes such as internships. The move comes alongside efforts to cushion the middle class from rising Pertamax fuel prices.

14 Points of the US-Iran Peace Memorandum of Understanding

The United States and Iran have electronically signed a 14-point Memorandum of Understanding (MoU) aimed at ending hostilities, with details released ahead of a formal ceremony in Switzerland. The agreement outlines an immediate and permanent cessation of military operations across all fronts, including Lebanon, and sets a 60-day deadline for negotiating a final comprehensive accord. Key provisions include the lifting of US naval blockades and sanctions, a commitment to a $300 billion reconstruction plan for Iran, and reaffirmation of Iran's pledge not to develop nuclear weapons.

Purbaya Secures Rp 301.8 Trillion in Funding from AIIB, Here Are the Details

Finance Minister Purbaya Yudhi Sadewa has secured US$17 billion, equivalent to approximately Rp 301.8 trillion, in funding from the Asian Infrastructure Investment Bank (AIIB) for Indonesia's national development projects. The multi-year rolling pipeline funding will be allocated across the 2025-2029 period to support strategic government programmes. AIIB also expressed interest in opening a representative office in Jakarta to strengthen coordination and project implementation.

Muhammadiyah urges comprehensive reform of free nutritious meal programme governance

Indonesia's second-largest Islamic organisation, Muhammadiyah, has called for a thorough overhaul of the Free Nutritious Meal (MBG) programme's management system. The group emphasised that recent public criticism should serve as a catalyst to strengthen field management and ensure the programme meets its national strategic targets. Muhammadiyah has outlined three core quality pillars—food safety, professional governance, and sustainable ecosystem development—and pledged its network of educational, health, and social services as a strategic government partner.

Government Lawyer: No Delay in Execution of Hotel Sultan on GBK Land

The government's legal representative has confirmed that the court-ordered eviction of Hotel Sultan from the Gelora Bung Karno (GBK) complex will proceed as scheduled on Thursday, 18 June 2026. Over 3,100 joint personnel have been deployed to secure the operation despite opposition from the hotel's management and staff. The authorities have urged the occupants to vacate voluntarily, warning that the execution will continue regardless.

Disabled Woman in Jombang Murdered by Older Brother for Being a 'Nuisance'

A 47-year-old woman with an intellectual disability in Jombang, East Java, was murdered by her 61-year-old brother after he became irritated by her perceived constant disturbances. The suspect initially claimed she died from a bathroom fall, but a witness report prompted a police exhumation and autopsy which revealed repeated physical abuse. The case highlights the extreme vulnerability of disabled individuals to domestic violence.

Viral 'Sultan Basket' Ride Collision in Sukabumi: Operator Speaks Out

The operator of the 'Keranjang Sultan Langit' hanging basket ride in Sukabumi has clarified that a viral collision was caused by a visitor tampering with a speed controller. Management stated the incident on 14 June 2026 was minor, with baskets merely nudging each other slowly near the finish line, contrary to the dramatic social media footage.

Popular: Home repairs after quake to illegal building crackdown

A roundup of popular human-interest stories in Indonesia includes the government's pledge to repair homes damaged by a 6.7 magnitude earthquake in Central Sulawesi and a major operation in Bandung to demolish 174 illegal structures. Other highlights cover the social affairs minister's assurance that budget efficiencies will not cut social aid or Sekolah Rakyat quotas, and a report that forest fires in Riau have scorched over 15,000 hectares this year.

KPK Investigates Alleged US$1 Million Bribe to House Hajj Special Committee

Indonesia's Corruption Eradication Commission (KPK) is probing a suspected US$1 million payment from the Ministry of Religious Affairs to the House of Representatives' Hajj Inquiry Special Committee. The investigation is part of a broader corruption case involving the 2023-2024 hajj quota, which has already seen former minister Yaqut Cholil Qoumas named as a suspect. State losses in the case are estimated at Rp622 billion.

Vice President Gibran Invites Five Students on Working Visit to Four Provinces

Vice President Gibran Rakabuming has embarked on a working visit to five Indonesian provinces, accompanied by five university students. The trip includes reviewing the Free Nutritious Meals programme, inspecting strategic infrastructure, and opening a national farmers and fishermen event. The inclusion of students marks an unusual approach to vice-presidential field visits.

KPK Probes Ex-Ministerial Aide, Traces Alleged Money Flow to Hajj Inquiry Committee

Indonesia's Corruption Eradication Commission (KPK) is investigating allegations that funds were channelled from the Ministry of Religious Affairs to the House of Representatives' special committee on the hajj pilgrimage. The probe focuses on a former special staff member to ex-Minister Yaqut Cholil Qoumas and is linked to a corruption case involving additional hajj quotas for 2023-2024. The case has already named four suspects, including the former minister, and is estimated to have caused state losses of Rp622 billion.

Hotel Sultan Eviction Execution Underway, Avoid These Roads!

The Gelora Bung Karno Complex Management Centre (PPKGBK) is executing a court-ordered eviction of Hotel Sultan today, leading to temporary road closures around the Senayan area. Authorities have deployed 300 personnel to secure the site and meticulously inventory assets belonging to the previous operator, PT Indobuildco. Motorists are advised to avoid Jalan Asia Afrika, Jalan Pintu Satu Senayan, Jalan Gatot Subroto, and Jalan Sudirman due to expected traffic congestion.

MBG Efficiency Measures Could Slash State Spending by Rp 1 Trillion Monthly

The Indonesian government estimates that efficiency improvements to the Free Nutritious Meal (MBG) programme could save the state budget approximately Rp 1 trillion per month. Reforms include a moratorium on new nutrition service units, recalculating incentives, and refocusing aid on the most vulnerable groups, such as pregnant women and toddlers. The total annual savings could reach Rp 12 trillion.

BMKG Warns of Heavy Rain Across Indonesia Due to Cyclonic Circulation

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has warned of moderate to heavy rainfall across several regions due to a cyclonic circulation forming in the Pacific Ocean north of West Papua. The system is creating convergence zones that enhance rain cloud growth, particularly affecting areas in Kalimantan, Sulawesi, and Papua. The public is urged to monitor official channels for weather updates.

Why Elon Musk Shifted from Taiwan to South Korea

Elon Musk's Neuralink has partnered with Samsung to produce its next-generation chips, ending its previous collaboration with Taiwan's TSMC. The move is reportedly driven by supply constraints at TSMC due to the AI boom, opening an opportunity for Samsung's more stable 4nm process. Samsung is expected to deliver trial chips by early 2027, with mass production potentially starting by late next year.

Consolidation of State-Owned Insurance Firms Targeted for Completion This Year

The Ministry of State-Owned Enterprises and Danantara Indonesia aim to finalise the merger of state insurance companies under Indonesia Financial Group (IFG) in 2026. The consolidation is designed to create a healthier, more efficient, and competitive insurance ecosystem. Officials expect the move to strengthen underwriting capacity, boost operational efficiency, and expand insurance penetration to support national economic development.

Mother in Riau Exploits Children as 'Silver Man' Street Beggars

A mother in Pelalawan, Riau, has been arrested for allegedly forcing her underage children and grandchild to work as 'manusia silver' street beggars. The children were required to hand over Rp 500,000 daily and faced physical abuse if their takings fell short. The suspect has been charged under Indonesia's Child Protection Law.

KPK probes alleged US$1 million payment to House Hajj Special Committee during ex-staff examination

Indonesia's Corruption Eradication Commission (KPK) is investigating allegations that the Ministry of Religious Affairs funnelled US$1 million to a House of Representatives special committee scrutinising the 2024 Hajj pilgrimage. The probe emerged during questioning of a former special staff member to ex-Religious Affairs Minister Yaqut Cholil Qoumas. The case is part of a wider corruption investigation into Hajj quota allocations that has already named multiple suspects and identified potential state losses of Rp622 billion.

Video: Indonesia's Debt Report Card Approaching Mid-2026

Indonesia's external debt position is under scrutiny amid global economic uncertainty, with borrowings from both the United States and China declining in nominal terms by April 2026. However, Indonesia's debt denominated in Chinese Yuan has surged to a record high, raising questions about a potential new dependency or a strategic diversification away from US dollar dominance.

KPK Halts MBG Corruption Inquiry, Hands Over to Attorney General's Office

Indonesia's Corruption Eradication Commission (KPK) has suspended its preliminary investigation into alleged corruption within the Free Nutritious Meals programme at the National Nutrition Agency (BGN). The decision follows the Attorney General's Office (Kejagung) initiating its own formal investigation and naming three former BGN officials as suspects. The KPK stated it will step back to avoid overlapping probes while maintaining confidence in the Kejagung's transparent handling of the case.

Vice President Gibran Invites Five University Students to Inspect Priority Programmes in Eastern Indonesia

Vice President Gibran Rakabuming Raka has included five students from various Indonesian universities in his working visit to eastern Indonesia to directly observe the implementation of government priority programmes. The trip, spanning Ende, Gorontalo, and Papua, aims to enhance public oversight and strengthen collaboration between central and regional governments. Key agenda items include inspecting the free nutritious meal programme, reviewing a cooperative village scheme, and opening national agricultural and choral events.

Welcoming 80th Bhayangkara Day, Bogor Police Build 8 'ASRI' Homes in Phase II

The Bogor Resort Police have launched the second phase of their 'Rumah ASRI' humanitarian programme, simultaneously renovating eight uninhabitable houses across the regency to mark the 80th Bhayangkara Day. The initiative is entirely funded by voluntary donations from police personnel through the 'Polisi Baik' scheme, without using any official budget. The programme aims to improve living standards, reduce social vulnerability, and honour fallen officers by providing a decent home for a police widow.

KPK Chief Highlights Bureaucratic Mindset as Root of Corruption in Public Services

The head of Indonesia's Corruption Eradication Commission (KPK), Setyo Budiyanto, has identified a problematic bureaucratic mindset as a key driver of corruption in public services. He warned that seemingly trivial deviations, such as deliberately slowing down processes or tolerating small illicit payments, can escalate into major graft. The KPK is currently handling a case involving alleged extortion in the processing of residence permits for foreign nationals at the Directorate General of Immigration.

5 Palaces in Bali Open to Tourists

Bali's royal heritage is preserved in several 'puri' (palaces) that now serve as cultural centres and tourist attractions. These sites, including Puri Agung Ubud and Puri Agung Klungkung, offer visitors insights into Balinese history, architecture, and traditional arts. Entry fees vary, with some palaces offering free admission and others charging a nominal fee.

US and Iran Officially Sign War Peace MOU, Here Are the Full 14 Points

The United States and Iran have formally signed a Memorandum of Understanding to end hostilities, including the reopening of the Strait of Hormuz. The agreement outlines a 60-day framework for a final peace deal, covering military cessation, sanctions relief, and a $300 billion reconstruction fund. Key provisions include mutual respect for sovereignty, the withdrawal of US forces, and Iran's commitment to not develop nuclear weapons.

Prabowo Instructs Officials to Further Reduce Hajj Waiting Period

President Prabowo Subianto has directed his administration to find ways to further shorten the current 26-year waiting period for Indonesian Hajj pilgrims. The instruction was conveyed during a meeting with the House of Representatives' Hajj Oversight Team, where officials reported that the waiting time has already been reduced from a previous high of 35-40 years. The government is now tasked with exploring alternative schemes to accelerate the process despite the average wait for this year's pilgrims being 13-14 years.

Trump and Pezeshkian Formally Sign US-Iran Memorandum

Iran's Foreign Ministry has confirmed the electronic signing of a 14-point memorandum of understanding between US President Donald Trump and Iranian President Masoud Pezeshkian. The agreement, signed at Versailles, aims to permanently end hostilities, lift the blockade of the Strait of Hormuz, and provide economic compensation and sanctions relief for Iran. Initial negotiations will focus exclusively on a ceasefire in Lebanon, with a strict 60-day window set for talks on Iran's nuclear programme and sanctions removal.

US-Iran Memorandum of Understanding Officially Signed

Iran and the United States have formally signed a memorandum of understanding electronically, aiming to de-escalate tensions and end hostilities. The agreement prioritises a ceasefire in Lebanon and sets a 60-day framework for exclusive negotiations on Iran's nuclear programme and sanctions relief, while explicitly excluding discussions on Iran's missile capabilities.

Sumatra Disaster Follow-Up Aid Reaches Nearly IDR 1 Trillion

Indonesia's Ministry of Social Affairs is disbursing nearly IDR 1 trillion in follow-up disaster aid to over 82,000 beneficiaries across ten regencies and cities in Aceh, North Sumatra, and West Sumatra. The assistance includes home contents, socio-economic empowerment support, and a three-month living allowance. The distribution is based on data verified by the central government's rehabilitation task force and the national statistics agency.

Rupiah Weakens to Rp 17,762 per US Dollar Ahead of Bank Indonesia's June 2026 RDG

The Indonesian rupiah depreciated by 37 points to Rp 17,762 against the US dollar on Wednesday, as markets awaited the Bank Indonesia (BI) Board of Governors Meeting (RDG) scheduled for Thursday. The central bank's policy decision is under intense scrutiny following recent surprise rate hikes aimed at stabilising the currency. Analysts also noted that Indonesia has diversified its crude oil import sources to mitigate geopolitical risks and secure competitive pricing.

Lawyer Sony Sonjaya: Elza Syarief Was Dismissed, Not Resigned

A dispute has emerged within the legal team of a former deputy head of the National Nutrition Agency involved in a corruption case. Krisna Murti, a lawyer for Sony Sonjaya, claims Elza Syarief was dismissed by the client's family, contradicting her public statement that she resigned over alleged dishonesty regarding illicit funds.

Gibran Vows to Reform MBG and Kopdes Merah Putih Governance: Every Rupiah Free from Corruption

Vice President Gibran Rakabuming Raka has pledged to overhaul the governance of the Free Nutritious Meals (MBG) programme and the Merah Putih Village Cooperatives, emphasising transparency and zero tolerance for corruption. He stressed that every rupiah must be properly utilised and free from corrupt practices. Gibran also welcomed constructive criticism from university students, whom he invited to join a working visit to several provinces to review the programmes' implementation.

KPK Temporarily Halts Investigation into Free Nutritious Meal Programme Case

Indonesia's Corruption Eradication Commission (KPK) has decided to temporarily suspend its inquiry into alleged corruption within the Free Nutritious Meal (MBG) programme at the National Nutrition Agency (BGN). The decision follows the Attorney General's Office (Kejagung) naming three former BGN officials as suspects and progressing with its own investigation. The KPK expressed confidence in the Kejagung's handling of the case and indicated it would coordinate further if necessary.

Trump and Iranian President Officially Sign Peace Agreement

The United States and Iran have entered a new phase in their peace process, with both presidents formally signing a memorandum of understanding to end hostilities. The agreement, signed electronically, initiates a two-month negotiation period with the reopening of the Strait of Hormuz as the first step.

Ministries and Agencies Flock to Request Budget Increases

Several Indonesian ministries and agencies have appealed to the House of Representatives for significant budget increases for the 2027 fiscal year, citing unmet operational needs and new programmes. The requests, which include substantial additional funds for the National Police, PPATK, and the Ministry of Human Rights, follow the government's initial indicative budget ceilings. Lawmakers have begun approving some of the proposed increases, particularly for core programme delivery.

Economy Tightens, Indonesians Demand Jobs and Decent Wages

Indonesia's Consumer Confidence Index fell to a seven-month low in May 2026, driven by declining perceptions of job availability and current economic conditions. Analysts warn the drop reflects real income pressure and labour market weakness, not just price increases, and urge the government to prioritise targeted social assistance, food price stabilisation, and job creation incentives. The government is currently formulating stimulus measures to protect purchasing power, particularly for the shrinking middle class, following recent fuel price hikes.

Jakarta Air Quality Ranks Third Worst Globally, Residents Advised to Wear Masks

Jakarta's air quality was classified as unhealthy on Thursday morning, ranking as the third worst city globally according to IQAir data. The provincial government, in partnership with the meteorological agency, is developing an early warning system to predict air pollution more accurately and protect vulnerable groups.

Purbaya Meets Chinese Finance Minister to Strengthen Financing Strategy

Indonesian Finance Minister Purbaya Yudhi Sadewa held bilateral talks with his Chinese counterpart Lan Fo'an in Beijing to secure competitive financing sources and broaden Indonesia's investor base. The meeting is part of a long-term, disciplined government strategy to ensure sustainable development funding amid global challenges. Purbaya emphasised Indonesia's strong economic fundamentals, controlled debt ratio, and maintained investor confidence as key assets in building mutually beneficial cooperation.

DPR Reprimands Minister Pigai for Proposing Rp492.9 Billion Budget Increase Mid-Meeting

The Indonesian House of Representatives (DPR) Commission XIII reprimanded Human Rights Minister Natalius Pigai for unexpectedly proposing a Rp492.9 billion budget increase during a hearing. The commission approved additional funds for human rights enforcement but rejected the larger portion earmarked for management support. Lawmakers criticised the allocation, noting that the majority of the proposed increase was for management rather than the ministry's core mandate of human rights protection and enforcement.

Muhammadiyah Urges Overhaul of Free Nutritious Meal Programme

Indonesia's second-largest Islamic organisation, Muhammadiyah, has called for comprehensive improvements to the governance of the national Free Nutritious Meal (MBG) programme. The organisation emphasised that robust, transparent management is essential for the programme to achieve its goal of improving human resources. Muhammadiyah has pledged to act as a strategic partner, leveraging its extensive network in education, health, and social services.

Indonesia Needs Rp 1,000 Trillion for AI, Luhut Outlines Funding Strategy

Indonesia requires an estimated US$60 billion (Rp 1,066 trillion) in data centre infrastructure investment to support artificial intelligence capacity by 2030, according to National Economic Council Chair Luhut Binsar Pandjaitan. He proposed leveraging existing state assets like Telkom's infrastructure and inviting private investors through long-term lease-to-own schemes to avoid direct government expenditure. Luhut also recommended to President Prabowo Subianto that AI be used to strengthen state revenue oversight and digitise public services, including business licensing.

Criminal Sanctions Proposed in Cooperatives Bill DIM

Minister of Cooperatives Ferry Juliantono has proposed the establishment of a cooperative deposit guarantee institution and a regulatory body for savings and loan operations as part of the fourth revision of the Cooperatives Law. The proposals, presented to the House of Representatives, also include criminal sanctions to protect members and the public, though Ferry cautioned that careful formulation is needed to avoid counterproductive criminalisation. The revision aims to modernise the 34-year-old law and elevate Indonesian cooperatives to global standards.

Mobile Samsat Services Available at 14 Locations Across Greater Jakarta on Thursday

The Metro Jaya Regional Police are deploying mobile vehicle tax payment units across 14 locations in Jakarta, Depok, Tangerang, and Bekasi on Thursday. The service facilitates annual motor vehicle tax payments, while five-yearly renewals and plate replacements must still be processed at permanent offices. Citizens are reminded to adhere to health protocols during their visit.

Mount Semeru Erupts Three Times This Morning, Ash Column Reaches 1,000 Metres

Mount Semeru in Lumajang, East Java, experienced three eruptions on Thursday morning, with the highest ash column reaching 1,000 metres above the summit. The Centre for Volcanology and Geological Hazard Mitigation (PVMBG) reported the eruptions occurred at 05:26, 06:36, and 06:39 WIB, with ash drifting northwards. The volcano remains under close observation as it is the highest peak on Java Island.

Gibran guarantees MBG programme governance free from corruption

Vice President Gibran Rakabuming Raka has pledged to improve the governance of the Free Nutritious Meals (MBG) programme to ensure it is free from corruption and that every rupiah benefits the public. He also highlighted the government's commitment to reforming the Red and White Village Cooperative scheme. The remarks were made ahead of a working visit to five provinces to review priority programmes.