Indonesian Political, Business & Finance News

Archive: 1 June 2026

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Hasto: Megawati and Prabowo Meet at Pancasila Anniversary to Discuss Indonesia's Future Direction

President Prabowo Subianto and former President Megawati Soekarnoputri discussed Indonesia's future direction during Pancasila's anniversary ceremony, according to PDIP Secretary-General Hasto Kristiyanto. He stressed that Indonesia's constitution does not recognise opposition parties, with PDIP serving as a balancing force, and warned against silencing civil society criticism through ambiguous laws. Hasto also highlighted Pancasila's role in promoting economic and political freedom for the common people.

Former Defence Minister Ryamizard Ryacudu Laid to Rest at Kalibata Heroes' Cemetery

Former Defence Minister Ryamizard Ryacudu has been laid to rest at Kalibata Heroes' Cemetery following a military funeral ceremony. The 76-year-old passed away on Sunday while receiving treatment at RSPAD Gatot Soebroto hospital, having previously served as Army Chief of Staff during President Megawati Soekarnoputri's administration.

Iran set to revise potential MoU after receiving latest US response

Iran is preparing to revise its draft memorandum of understanding (MoU) with the US following the latest US response, which raised concerns over frozen assets and stricter nuclear terms. Despite a temporary ceasefire agreed on 8 April, negotiations continue through Pakistan's mediation with no final agreement yet reached.

Man assaulted by friend during alcohol-fuelled party in West Jakarta, nasal bone fractured

A man suffered a fractured nasal bone after being assaulted by a friend during an alcohol-fuelled gathering in West Jakarta. Police have arrested the suspect and are conducting further investigations, including a medical examination to confirm injuries. The incident occurred following a dispute that escalated outside a liquor outlet.

Hasto on Jokowi's Field Visits: A Leader's Accountability

PDIP Secretary-General Hasto Kristiyanto has asserted that former President Joko Widodo's field visits should focus on accountability for past policies rather than electoral considerations. He criticised the current administration's fiscal challenges as stemming from previous governments' decisions, including $13 billion in social assistance spending allegedly used for electoral purposes and infrastructure projects with minimal economic impact. Hasto warned that public scrutiny of these policies' effects on Indonesia's legal and democratic systems is inevitable.

DJP records 13.59 million tax return filings by 31 May 2026

Indonesia's tax authority reported 13.59 million tax return filings by the 31 May deadline, with underpaid returns surging across individual and corporate taxpayers. Finance Minister Purbaya Yudhi Sadewa stated that the Coretax system has positively impacted state revenue, reflected in sharp rises in underpaid filings and declines in overpaid returns for most categories, though corporate overpaid returns increased by 59%.

Gold Prices at Pegadaian, Galeri 24 and UBS Drop Today

Gold prices at Pegadaian slightly declined for Galeri 24 and UBS products on Monday, while Antam gold remained unchanged. The fluctuations indicate minor movements in Indonesia's domestic bullion market, with Pegadaian offering various gold bar sizes to suit different investor needs and financial capacities.

Former Defence Minister Ryamizard Ryacudu Remembered by Agum Gumelar and Fadli Zon

Former Defence Minister Ryamizard Ryacudu, who served under President Joko Widodo, has passed away at 76. Agum Gumelar and Fadli Zon paid tribute to his firm yet compassionate leadership and straightforward communication style. His state funeral is being held at the Ministry of Defence before burial at Kalibata Heroes Cemetery.

Man defrauds Bogor petrol stations with fake transfer proofs in 10 cash withdrawal scams over two months

A man has been arrested for defrauding petrol stations in Bogor using fake bank transfer proofs to withdraw cash. Over two months, he carried out 10 such scams, causing over Rp 2 million in losses. Police apprehended him after his third attempt at a Cileungsi station failed, having previously disguised himself in a high school uniform to deceive staff.

Iran Reopens Dozens of Underground Missile Bunker Access Points Targeted in US and Israel Strikes

Iran has restored access to 50 of 69 damaged tunnel entrances at underground missile bases targeted in US-Israel strikes, using bulldozers and trucks to clear debris since a ceasefire took effect. Despite a two-week truce agreed in April, subsequent peace talks in Islamabad ended without resolution, prompting a US port blockade. President Trump extended the ceasefire to allow Iran time to draft a peace proposal, underscoring the fragile diplomatic standoff.

At Apple's Home Turf, Samsung Leads in Customer Satisfaction

Samsung has surpassed Apple in US customer satisfaction for smartphones, according to the American Customer Satisfaction Index (ACSI), with Samsung scoring 81 points compared to Apple's 80. The Galaxy S Series led with 84 points, while Apple's latest iPhones scored 82, reflecting Samsung's growing edge in the critical US market despite Apple's home advantage.

PDIP Warns of Indonesia's 'Digging Holes to Fill Holes' Debt Crisis

PDIP Secretary-General Hasto Kristiyanto has highlighted alarming economic conditions in Indonesia, including unsustainable debt cycles, fiscal deficits, and a weakening rupiah, which he attributes to populist government policies. He stressed that the government's short-term electoral strategies are undermining long-term fiscal health, and called for Pancasila-based technical policymaking to ensure policies benefit the people and strengthen national sovereignty.

Remains of Former Defence Minister Ryamizard Ryacudu Arrive at Kalibata National Heroes Cemetery

The funeral procession for former Defence Minister Ryamizard Ryacudu arrived at Kalibata National Heroes Cemetery on Monday, attended by President Prabowo Subianto and Vice President Gibran Rakabuming Raka. The 76-year-old retired general, who served as Defence Minister from 2014 to 2019 and was previously Army Chief of Staff, died on Sunday at RSPAD Gatot Soebroto Hospital in Jakarta.

PDIP Criticises Democratic Climate on Pancasila Anniversary

PDIP Secretary-General Hasto Kristiyanto has criticised Indonesia's democratic climate under President Jokowi's second term, labelling it a 'populist authoritarian state' with a legal system subordinated to power. He called for restoring Sukarno's geopolitical vision, positioning universities as knowledge hubs, and reaffirmed the party's commitment to the marginalised, while apologising for power shifts following the 2024 elections.

DPR Urges Ministry of Hajj and Umrah to Intervene in Thousands of Failed Umrah Cases

DPR member Hidayat Nur Wahid has called on the Ministry of Hajj and Umrah to address allegations of fraud by Hanania Travel, which left thousands of pilgrims stranded after paying tens to hundreds of millions of rupiah. He urged compensation for victims and strict legal action against the agency, including license revocation and up to eight years' imprisonment for the owner under Law No. 14 of 2025. Jakarta police have named the travel agency's owner as a suspect.

Accelerating Investment Deregulation to Foster a More Competitive Business Climate

The Indonesian government is accelerating investment deregulation under President Prabowo Subianto to tackle bureaucratic hurdles and improve the business climate. Economic experts support the initiative, highlighting that streamlined regulations will attract foreign investment, create jobs, and strengthen national industrial competitiveness. The Investment Deregulation Task Force is tasked with coordinating cross-ministerial reforms to ensure measurable outcomes.

Important: Hajj Pilgrims' Luggage Rules for Return to Indonesia

The Indonesian Ministry of Hajj and Umrah has issued strict baggage regulations for Hajj pilgrims returning in 2026, including weight limits and Zamzam water restrictions. Pilgrims must comply to ensure safety, with prohibited items subject to removal. Official 5-litre Zamzam water allotments will be provided upon arrival, and cash exceeding specified amounts must be declared to customs.

Why Pancasila Day was declared a national holiday during Jokowi's presidency

Pancasila Day, commemorated annually on 1 June, honours President Sukarno’s 1945 speech outlining Indonesia’s state philosophy. President Jokowi designated it a national holiday in 2016 through Presidential Decree No. 24, aiming to reinforce Pancasila’s role in national unity. The decision reflects ongoing efforts to embed these principles within Indonesian society.

Industrial Corridor Optimisation: PKP Shifts Subsidised Housing to Vertical Model

The Ministry of Housing and Settlement has shifted subsidised housing for low-income groups from horizontal to vertical models in Meikarta, West Java, to address commuting challenges in Southeast Asia’s largest manufacturing cluster. The initiative aims to integrate affordable housing with industrial zones while ensuring transparency to avoid past legal issues, with initial units expected by August 2028.

Prabowo Urges Honest Assessment of Uneven Economic Growth

President Prabowo Subianto has called for honesty regarding Indonesia's uneven economic growth during the Pancasila Day ceremony, acknowledging that despite decades of expansion and abundant resources, benefits have not reached all citizens equally. He stressed the need to better utilise the nation's wealth for broader prosperity, attended by key government officials and former leaders.

World Quietly Reduces Oil Consumption as Demand Plummets 9%

Global oil demand has dropped by 9% (1.5 million barrels per day) despite minimal disruption to economic activity, according to JPMorgan. The decline stems from consumers switching to cheaper transport options due to high energy prices, not government policies, with prices remaining stable even amid the Strait of Hormuz closure.

Pigeon's Natural Compass Found in Heart, Not Beak or Eyes

A groundbreaking study published in Science reveals that homing pigeons use iron-rich immune cells in their liver to sense Earth's magnetic field, acting as a biological compass. When these cells are removed, pigeons struggle to navigate on cloudy days but rely on the sun when visible. The discovery links immune function to magnetoreception, potentially reshaping understanding of animal navigation.

Indonesia Develops Tubers-Based Noodles, Texture and Taste Compared to Wheat Flour

Indonesia’s National Research and Innovation Agency (BRIN) has developed non-wheat noodles using local crops like corn and cassava to reduce reliance on imported wheat and support national food security. The initiative, part of government efforts, aims to diversify staple foods and offer lower glycemic index options while boosting local agriculture through partnerships with regional governments and businesses. Commercialisation under the Mocca Pasta brand has created jobs and enhanced economic opportunities for communities.

Hooray! 13th Salary for Civil Servants and Pensioners to be Disbursed on 2 June 2026: Schedule, Amounts and Recipient List

The Indonesian government will disburse the 13th salary to civil servants and pensioners from 2 June 2026 under Government Regulation No. 9/2026. Payments will vary based on components including basic salary, allowances, and performance bonuses, with pensioners' amounts determined by their May 2026 income. PT Taspen confirmed the disbursement process for retirees starts on this date to ensure timely payments.

Apindo backs strengthened governance of natural resource exports

Apindo and five industry associations have expressed support for the government's initiative to enhance natural resource export governance, aiming to boost transparency, prevent under-invoicing, and optimise foreign exchange earnings. They propose a technical coordination forum involving government bodies, DSI, financial authorities, and business groups to ensure phased, transparent implementation while safeguarding contractual obligations and international market confidence.

KPK states no political pressure in BI-OJK CSR case

The Corruption Eradication Commission (KPK) has stated there is no political pressure affecting its handling of the BI-OJK CSR corruption case involving two DPR members. Investigators are tracing the flow of funds to confirm their usage, with possible detention measures imminent for the suspects, who face charges under anti-corruption and money laundering laws.

Prabowo: Pancasila Not Just a Historical Document but a Guiding Principle

President Prabowo Subianto has underscored that Pancasila should not be treated as a mere historical relic but as a practical framework for national life. He stressed its role in unifying Indonesia's diverse population and called for economic development to reflect Pancasila's core values of equity and justice. This comes as global challenges intensify, with Prabowo urging honesty in assessing current economic disparities.

ASDP implements phased sterilisation of Merak-Bakauheni Ports

ASDP has commenced a phased sterilisation of the Merak and Bakauheni ports to enhance safety, order, and modernity in ferry services, with trials starting 1 June and full implementation by 15 June 2026. The initiative aligns with national regulations and aims to improve public mobility and national logistics while prioritising passenger safety and comfort.

Badung Lacks Shelter as New Project Targets 2027 Completion

Badung Regency is advancing plans to build a shelter for vulnerable communities, targeting completion by 2027. Three districts have been identified as potential sites based on prior feasibility studies. Despite the absence of such a facility, strong social cohesion in the region has mitigated major issues, though officials stress the need for improved social protection infrastructure.

Prabowo: Indonesia's Natural Wealth Has Long Been Controlled by Foreign Nations

President Prabowo Subianto has announced the creation of PT Danantara Sumberdaya Indonesia (DSI) to centralise natural resource exports, ensuring value addition stays within Indonesia and benefits all citizens. He linked this move to Pancasila economic principles, emphasising social justice, cooperative development, and inclusive growth to combat poverty and inequality.

Rampant Fraud Prompts DPR Hajj Oversight Team to Push for Formal Proxy Hajj Agency

The DPR's Hajj Oversight Team is advocating for a government-established agency to manage proxy haji services amid widespread fraud allegations. The move aims to ensure transparency and oversight by the Ministry of Hajj and Umrah, preventing recurring issues in the service.

US Strikes Iranian Radar and Drone Command Centre in 'Self-Defence' Claim

The United States has conducted targeted strikes on Iranian military facilities in Goruk and Qeshm Island, asserting self-defence following Iran's downing of a US MQ-1 drone over international waters. The escalation occurs against the backdrop of an ongoing Middle East conflict between the US, Israel, and Iran, with a ceasefire in place since April but peace mediation efforts led by Pakistan failing to produce tangible results.

Indonesia sees investor gains from Danantara export plan - ANTara News

Finance Minister Purbaya Yudhi Sadewa stated that the new Danantara-led export system will enhance transparency and investor returns by curbing under-invoicing and ensuring repatriation of earnings. The regulation, set to phase in from June 2026, will initially oversee coal, palm oil, and ferroalloys before DSi operates as a full trading entity in 2027.

DJI Lito X1 and Lito 1 Officially Launched in Indonesia: Affordable Drones for Beginners

Erajaya Active Lifestyle has launched DJI's new Lito series in Indonesia, targeting beginner creators and outdoor enthusiasts with affordable drones featuring professional-grade capabilities. The models include advanced obstacle sensing and 8K photo support, making aerial photography more accessible without compromising on quality.

Former Defence Minister Ryamizard Ryacudu's Remains Transported to Kalibata Heroes' Cemetery

Former Defence Minister Ryamizard Ryacudu's funeral procession concluded at Kalibata Heroes' Cemetery following military honours. His distinguished career included serving as Army Chief of Staff and Defence Minister under President Joko Widodo, where he reinforced military professionalism and national security. The Indonesian Army extended condolences to his family, praying for his eternal peace and their strength during this time.

BYD claims new Yangwang U8L frame passes 12-tonne lift test

BYD's new Yangwang U8L frame has passed a 12-tonne lifting test, featuring a 56kg weight reduction over the previous design. Developed with aerospace company Hantek since 2023, the frame uses aerospace-grade aluminium alloys in a manufacturing breakthrough. The U9 Xtreme limited edition, priced at 20 million yuan (US$2.76 million), is BYD's most expensive vehicle, with sales rising to 264 units in April 2026.

BGN Denies Appointing Intermediaries for MBG Kitchen Locations

The National Nutrition Agency (BGN) has denied appointing intermediaries for free nutrition kitchen locations amid fraud cases where scammers falsely claim to facilitate site approvals for payment. Police in East Lombok are investigating a case involving Rp950 million in losses, with a suspect already named. Authorities urge victims to seek legal recourse through law enforcement.

Indonesia sees investor gains from Danantara export plan

The Indonesian government has introduced a new regulation centralising export reporting through Danantara's DSI, aiming to enhance revenue transparency and curb financial irregularities in commodity exports. This system, phased from June 2024, is expected to boost corporate profits and investor returns by ensuring export proceeds are fully repatriated and accurately reported.

President: Pancasila as the Guiding Principle for the National Economic System

President Prabowo Subianto has affirmed Pancasila as the foundational guide for Indonesia's national economic system, stressing the need to address uneven growth and ensure fair distribution of prosperity. He emphasised that natural resources should be managed responsibly for the people's welfare and future generations, with cooperatives and small businesses central to poverty alleviation. Strategic measures including resource downstreaming, single-door export policies, and free nutritious meals were outlined to foster a sovereign and self-reliant nation.

Waste Picker Killed by Commuter Train in Tanah Sareal, Bogor

A waste picker was killed after being struck by a commuter train in Bogor's Tanah Sareal area on 31 May. Despite warnings from bystanders to stay away from the railway tracks, the victim continued collecting scrap near the line and was hit by the train. The commuter train stopped immediately, and the victim was pronounced dead before being transported to Bogor Regional Hospital.

World Oil Prices Climb Again, Asian Currencies Under Pressure

Geopolitical tensions in the Middle East have driven up global oil prices, pressuring Asian currencies as the US dollar strengthens. Rising energy costs are increasing import bills and imported inflation risks, prompting capital flight from emerging markets. Investors face heightened uncertainty, necessitating careful management of currency risks.

KPK Says Corruption Won't Thrive if Pancasila Values Are Implemented

The Corruption Eradication Commission (KPK) has urged the public to leverage Pancasila Day as a catalyst for reinforcing anti-corruption commitments and integrity in governance, stressing that corruption fundamentally conflicts with Pancasila's core values. Officials emphasised that embedding Pancasila's principles in state affairs and daily life is crucial to curbing corruption, with Deputy Chairman Johanis Tanak noting Indonesia's contributions to global peace through justice.

PDIP: Indonesia Has Become a Populist Authoritarian State Since Jokowi's Second Term

PDIP Secretary-General Hasto Kristiyanto has accused Indonesia of transforming into a populist authoritarian state under President Jokowi's second term, citing centralised democracy and compromised legal independence. He condemned the legal system's subordination to power and law enforcement's role in electoral mobilisation, while the party issued an apology for power abuse. Jokowi previously dismissed such criticisms as longstanding, stating that criticism is acceptable in a democracy but should respect etiquette.

Toyota Fortuner overturns on Jagorawi Toll Road towards Bogor, driver injured

An 18-year-old driver sustained minor injuries after a Toyota Fortuner overturned on the Jagorawi Toll Road near Bogor due to microsleep. The incident, which occurred around 6.15am on Monday, highlights the dangers of driver fatigue on major toll roads.

Magelang Mosque Caretaker Wins Rp 1 Billion Lottery

Sayat, a 72-year-old mosque caretaker and becak driver from Magelang, won Rp 1 billion in a 1990 government lottery under President Soeharto, a sum equivalent to 12 luxury homes in Jakarta’s Pondok Indah or 50kg of gold at the time. The funds were allocated for housing, mosque renovations, charity, and family savings, reflecting the social welfare initiatives of the era. The SDSB lottery, later banned, was a legalised government scheme to fund development projects.

Ferrari Luce set to become Australia's most expensive electric car

Ferrari's first electric vehicle, the Luce, is set to be Australia's priciest EV with an estimated price of up to €550,000 (Rp10.17 billion), surpassing models like the Purosangue and 12Cilindri. The five-seat grand tourer offers family-friendly features and won't be a prerequisite for limited editions, with electric models expected to account for 20% of sales by the end of the decade.

PDI-P Warns Indonesia's Fiscal Condition 'Worrying' as Debt Serviced Through New Borrowing

PDI-P Secretary-General Hasto Kristiyanto has warned that Indonesia's fiscal health is deteriorating, citing a first-quarter 2026 current account deficit, negative budget balance, and reliance on new debt for financing. He linked recent rupiah depreciation and economic pressures to structural issues and eroded confidence, highlighting rising food prices, poverty, unemployment, and layoffs as urgent concerns.

Prabowo Unfazed by Challenges in Driving Indonesia's Economic Transformation

President Prabowo Subianto has affirmed the necessity of an economic transformation aligned with Pancasila values, highlighting key areas such as natural resource downstreaming, food security, and rural development. Despite anticipating resistance from corrupt entities and illegal economic actors, the government remains committed to strengthening oversight and enforcing reforms to safeguard national interests.

Prabowo Pays Final Respects to Late Ryamizard Ryacudu at Defence Ministry

President Prabowo Subianto paid his final respects to former Defence Minister Retired General Ryamizard Ryacudu during a state funeral at the Ministry of Defence. Ryacudu, who served as Army Chief from 2002-2005 and Defence Minister from 2014-2019, was laid to rest with full military honours at Kalibata National Heroes Cemetery as a tribute to his lifelong dedication to Indonesia.

Gibran and Cabinet Members Attend Ryamizard Ryacudu's Wake

Vice President Gibran Rakabuming Raka and several cabinet ministers paid respects at the wake of former Defence Minister Ryamizard Ryacudu, who died aged 76. President Prabowo Subianto also attended before leading the national Pancasila Day ceremony. Ryamizard's military funeral will be held at Kalibata Heroes' Cemetery under Defence Minister Sjafrie Sjamsoeddin's leadership.