Indonesian Political, Business & Finance News

Archive: 1 June 2026

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Prabowo Returns from France to Gibran's Welcome at Halim with Major Economic Achievements

President Prabowo Subianto secured $3.5 billion in new commercial agreements during a state visit to France, including the establishment of a high-level business council to boost bilateral trade and investment. The deals in energy security and defence cooperation are expected to enhance Indonesia's global economic standing and long-term growth prospects.

Shallot and Red Bird's Eye Chilli Prices Remain High

Shallot and red bird's eye chilli prices remain stubbornly high across multiple Indonesian regions despite government efforts to stabilise supply. The Ministry of Agriculture is working with local authorities and farmers ahead of Eid al-Adha, but data shows persistent increases in staple food costs, affecting both vendors and consumers. Retailers like Ida in Cirebon have adjusted packaging and stock to manage the financial strain.

Prabowo's Rationale for Centralising Natural Resource Exports Through Danantara Subsidiary

President Prabowo Subianto has mandated that natural resource exports must flow exclusively through PT Danantara Sumberdaya Indonesia (DSI), a state-owned subsidiary, to reclaim economic control and prevent profits from leaving the country. The policy aims to curb foreign price manipulation, stop revenue leaks, and ensure resource wealth benefits Indonesian citizens through industrialisation and fair foreign exchange management.

Grounding Pancasila Values: The Common Thread of 'Transforming Service to the Nation' – From Ideology to Public Service

Minister Rini Widyantini has urged civil servants to embed Pancasila's values into public service, ensuring policies are fair, inclusive, and beneficial. The theme for this year's Pancasila Day highlights its role in national unity and global peace, with government services involving diverse societal groups to uphold Indonesia's identity and social justice.

Danantara Still Consolidating SOEs' Financial Reports Amid Nearly Rp100 Trillion Impairment

Danantara is currently consolidating financial reports of all state-owned enterprises (SOEs), including a near-Rp100 trillion impairment adjustment, to enhance fiscal transparency and corporate governance. The process, expected to conclude by end-June 2026, underscores the government's commitment to improving accountability in SOE management.

Video: Sharia Insurance Industry's Spin-Off Strategy and Resilience Amid Volatility

The Financial Services Authority (OJK) projects Sharia insurance assets in Indonesia to reach Rp150 trillion in 2026, buoyed by heightened public awareness, robust regulations, and the implementation of Sharia Business Unit spin-offs. The article explores how the sector is navigating capital market pressures and Rupiah depreciation, with insights from AASI Chairman Fauzi Arfan on CNBC Indonesia's Power Lunch.

Hasto Affirms PDIP's Role as Government Counterbalance

PDIP Secretary-General Hasto Kristiyanto has clarified that the party's participation in the Pancasila Day ceremony does not indicate a shift in political stance towards President Prabowo's government, stressing Indonesia's constitutional system does not recognise an opposition role. He cited Prabowo's emphasis on checks and balances and criticism in democracy, highlighting the meeting between the President and former President Megawati as a strategic opportunity to address national challenges. Hasto underscored Megawati's experience and personal rapport with Prabowo as key for guiding the country's future direction.

President Prabowo pays tribute at funeral of former Defence Minister Ryamizard Ryacudu

President Prabowo Subianto paid his final respects at the funeral of former Defence Minister Ryamizard Ryacudu, a prominent military figure who served as Army Chief and Defence Minister. The ceremony, held at the Ministry of Defence in Jakarta, included a moment of silence and prayers, underscoring the nation's gratitude for his contributions. Ryamizard, who passed away on 31 May 2026, was laid to rest with full military honours at Kalibata National Heroes Cemetery.

Tropical Cyclone Jangmi Strengthens, BMKG Identifies Regions at Risk of Heavy Rainfall

BMKG has warned of Tropical Cyclone Jangmi strengthening in the northern Philippine Sea, which will likely cause heavy rainfall, thunderstorms, and strong winds across parts of Indonesia. The agency highlighted convergence zones affecting regions from Papua to Java and the Natuna Islands, urging the public to remain vigilant against potential extreme weather conditions.

Mystery of 73 Fires at Fia's Sleman Home in 10 Days

A house in Sleman, Yogyakarta, has experienced 73 unexplained fires over 10 days, with experts investigating methane gas emissions from a nearby river as the probable cause. Geologists from UGM and BPPTKG have identified methane leaks from an ancient swamp area, which migrate through underground cracks and accumulate in household items, leading to spontaneous combustion. The ongoing investigation aims to determine the exact source and prevent further incidents.

Bulog Ensures Smooth Sugarcane Distribution for Blora Farmers

Bulog has confirmed ongoing coordination with stakeholders to ensure uninterrupted sugarcane distribution for Blora farmers, addressing community concerns over sugar industry operations. The state enterprise emphasises maintaining a stable environment and constructive dialogue among all parties to support local economic continuity and the sustainable national sugar ecosystem.

How to Apply for a Birth Certificate Online via IKD: Step-by-Step Guide

The Indonesian government's IKD app now allows online birth certificate applications, securing children's access to fundamental rights such as education and healthcare. The system incorporates encryption and e-signatures for document integrity, while civil document QR codes will only be scannable via the IKD app starting 1 January 2026.

13,020 tourists visit Thousand Islands during Waisak holiday

Over the Waisak holiday weekend, 13,020 tourists visited the Thousand Islands, with 6,110 on Saturday and 6,910 on Sunday. Local authorities expect visitor numbers to rise further with the Pancasila Day holiday, and are monitoring tourist sites to ensure safety and order. This follows 2,031 visitors to Untung Jawa Island during the previous long weekend.

Gerindra: Prabowo and Megawati’s Hand-Holding Symbolises Strong Friendship

Gerindra spokesperson Bahtra Banong highlighted President Prabowo Subianto and former President Megawati Soekarnoputri’s hand-holding during the Pancasila Day ceremony as a symbol of unity among national leaders amid global uncertainties. He emphasised Prabowo’s respect for predecessors as a key leadership trait, prioritising national cohesion and mutual cooperation. Banong stated their enduring friendship reflects a shared commitment to Indonesia’s interests.

Jokowi Remembers Ryamizard: Simple, Decisive, and Courageous

Former President Joko Widodo paid tribute to the late Defence Minister Ryamizard Ryacudu, highlighting his simplicity, decisiveness, and courage in national defence roles. Ryamizard, a retired general with a long military career including UN peacekeeping missions and key defence positions, passed away at 76 and was given a military funeral. His contributions to Indonesia's defence sector during his tenure under Jokowi and previous administrations were widely acknowledged.

Marwah WO Couple Accused of Scamming Brides and Grooms

East Jakarta police have uncovered a scam by a married couple operating Marwah Wedding Organiser, defrauding prospective couples through Instagram advertisements and WhatsApp communications offering attractive wedding packages. Authorities are investigating potential victims in Bekasi and coordinating with local police. They urge the public to exercise caution when choosing wedding service providers.

China Launches World's First Underwater Data Centre

China has launched the world's first underwater data centre powered by offshore wind energy to address rising AI computing demands while cutting energy use and carbon emissions. The facility, located off Shanghai's coast, uses seawater cooling and direct wind power connections, saving 50 billion kWh annually and eliminating freshwater use. This innovation supports China's strategy to build sustainable AI infrastructure in coastal areas facing resource constraints.

PNM Distributes RE3 For-E Clothing to Disabled and Elderly

PT Permodalan Nasional Madani (PNM) has distributed 17 tonnes of recycled clothing to disabled children and the elderly through partnerships with social institutions, while involving Mekaar borrowers in laundry services to create additional income streams. The RE3 For-E initiative also donated 2,700 children's books to remote schools, aligning environmental care with economic empowerment and educational support as part of PNM's 27th anniversary celebrations.

Two Israeli Elite Commandos Killed in Hezbollah Drone Strike

Two Israeli elite commandos have been killed in Hezbollah drone strikes in southern Lebanon within 24 hours, highlighting the group’s evolving aerial tactics. Israeli military assessments confirm drones now pose a serious operational challenge despite ground operations. Since hostilities resumed in March, at least 26 Israeli soldiers and around 3,300 Lebanese civilians have been killed.

5 Safe and Easy Ways to Use Free VPNs for Beginners

Free VPN services can safeguard privacy and access restricted content, but users must exercise caution to avoid data breaches. This guide outlines best practices for selecting trustworthy providers, avoiding risky apps, and understanding the risks of free services. Google has warned of malicious Android VPN applications, emphasising the need for vigilance.

Parents Need Not Panic as East Java Education Department Sets PIN Queue Strategy for 2026 SPMB

East Java Education Department has implemented a managed PIN queue system for the 2026 student admissions process to prevent overcrowding and panic, with daily limits of 200 participants. Schools are offering clear document requirements and assistance to ensure smooth verification, while addressing issues like incorrect grade entries. The department urges parents and students to follow scheduled times and prepare documents accordingly to avoid delays.

BPIP Chief Leads Pancasila's Birthday Flag-Lowering Ceremony

The Pancasila Ideology Development Agency (BPIP) conducted a flag-lowering ceremony for Pancasila’s Birthday in Jakarta, led by its chief Yudian Wahyudi. Former Paskibraka members were appointed as Pancasila ambassadors, tasked with promoting the state ideology across society, nation, and state. The event followed a morning ceremony presided over by President Prabowo Subianto attended by senior government figures including former presidents and cabinet ministers.

Rupiah Strengthens as Foreign Exchange Export Rules Take Effect

The rupiah strengthened on Monday as new foreign exchange export rules took effect, requiring natural resource exporters to repatriate earnings domestically. However, analysts caution the gain may be short-lived due to global geopolitical tensions, particularly between the US and Iran, which continue to influence currency movements. The government aims to bolster reserves and stability, but market confidence hinges on effective implementation and compliance.

Viral video shows child falling into Ragunan Zoo elephant enclosure as Jakarta government warns against endangering lives for content

A viral video of a child falling into an elephant enclosure at Ragunan Zoo has prompted the Jakarta Provincial Government to issue a stern warning against risking safety for viral content. Officials stressed the importance of adhering to safety barriers and supervision, particularly around large animals, and called for enhanced patrols and public education to prevent future incidents.

Profile of Didin, the Pancasila Day Ceremony Commander Summoned by Prabowo

Colonel Didin Nasrudin Darsono, commander of the Pancasila Day ceremony, was commended by President Prabowo Subianto for his performance. In his address, Prabowo emphasised the disparity in economic growth, noting that Indonesia's rich natural resources have not been equitably shared among its citizens. He called for honest reflection on these challenges to ensure fair distribution of the nation's wealth.

US Strikes Iranian Radar Sites as Kuwait Faces Missile-Drone Attack

The US and Iran have escalated tensions with reciprocal military strikes, marking the third major escalation in a week around the Strait of Hormuz. Kuwait reported intercepting hostile missile and drone attacks, while the conflict threatens global oil supplies and has driven up fuel prices worldwide as negotiations stall over disputed terms.

DPR Calls on Government to Disclose DSI Targets and KPIs Before Full Implementation

DPR Commission VI member Mufti Anam has demanded transparency on Danantara Sumberdaya Indonesia's targets and KPIs prior to mandatory export operations, citing concerns over foreign exchange leakage and potential abuse of power. He stressed the need for measurable KPIs and clear revenue targets to prevent public and business sector controversies. The politician also warned against granting DSI unchecked authority which could lead to dominance in the export sector.

Diesel Prices Drop at Pertamina, BP and Shell Stations

Pertamina, BP, and Shell have reduced diesel prices effective 1 June 2026, with Pertamina's Dexlite dropping to Rp23,000 per litre and Shell's prices influenced by global oil market volatility linked to the US-Israel-Iran conflict. Pertamax Turbo saw a price increase, while subsidized fuels such as Pertalite and Biosolar remained unchanged. The adjustments underscore the sensitivity of Indonesia's fuel market to international crude oil trends.

GMS Church Service Disruption Case Advances to Investigation Stage

Police have escalated the case of a forced church service disruption at Bantul's GMS to the investigation stage following a mass organisation's intervention. Authorities confirmed they have interviewed 16 witnesses and reiterated that religious freedom is constitutionally protected, urging the public to remain calm and avoid social media provocation. The incident, which went viral online, has sparked debate over religious tolerance and licensing issues.

Prabowo and Megawati Hold Hands After Pancasila Day Ceremony

President Prabowo Subianto and former President Megawati Soekarnoputri displayed camaraderie during the Pancasila Day ceremony in Jakarta on 1 June 2026, holding hands as they departed the venue. The event, commemorating Sukarno's foundational 1945 speech, was attended by Vice President Gibran and several cabinet ministers. The gesture underscores the political significance of Pancasila as Indonesia's state ideology.

KPK to Transfer Haji Quota Corruption Case Against Former Religious Affairs Minister After 2026 Hajj Season Ends

The Corruption Eradication Commission (KPK) plans to transfer its haji quota corruption case against former Religious Affairs Minister Yaqut Cholil Qoumas after the 2026 Hajj season concludes to prevent disruption to pilgrimage operations. The case, which has resulted in Rp622 billion in state losses, includes multiple suspects and ongoing legal proceedings since August 2025.

BPBD Warns of Heavy Rain in Cianjur Over Next Two Days

The Cianjur Disaster Management Agency has issued a two-day heavy rain warning, urging residents in flood and landslide-prone areas to remain vigilant and evacuate if necessary. Authorities have deployed personnel and 360 volunteers across districts to monitor conditions and respond swiftly, while tourism operators are advised to restrict access to water bodies and beaches due to high waves. Over the past two months, floods and landslides in several districts have forced dozens of families to evacuate.

BGN Evaluates Thousands of MBG Kitchens as Free Nutritious Meal Programme Strengthened to Enhance Service Quality

The National Nutrition Agency (BGN) is conducting ongoing evaluations of the Free Nutritious Meal Programme (MBG), with 2,213 Nutrition Service Units temporarily suspended until May 2026 to maintain quality standards. Of the 8,182 units previously suspended, 5,659 have resumed operations after meeting technical requirements, while the rest remain under review. The agency emphasises suspensions are not permanent but part of oversight to ensure compliance with national service standards.

HR Rasuna Said Road Traffic Jams Due to Illegal Concert Parking, DKI Jakarta Dishub Apologises

DKI Jakarta's Transportation Agency (Dishub) has apologised for traffic congestion on HR Rasuna Said Road caused by illegal parking from concertgoers at GOR Soemantri Brodjonegoro. The agency stated that while the event had police approval, there was no prior coordination regarding traffic and parking arrangements. Dishub emphasised the importance of using public transport and proper planning to mitigate future disruptions.

Six Additional Whoosh Train Services Added for Long Weekend: Schedule Details

KCIC has added six extra high-speed train services for the long weekend, raising daily capacity to 40,000 seats. The extended schedule now includes later departures from Bandung, with the last service to Halim operating until 21:20 WIB. The move aims to alleviate travel congestion during peak periods.

World Today: Myanmar explosion kills over 45 people

A mining-related explosion in Myanmar's Kaungtup village has killed 45 people and injured 70, with the region under control of the Ta'ang National Liberation Army. Brazilian health authorities are monitoring suspected Ebola cases, while US immigration detention facilities face legal challenges over alleged human rights abuses.

This Month in Indonesian Society (May 2026)

May 2026 proved to be a month of striking contrasts for Indonesian society -- a nation simultaneously honouring ancient spiritual traditions, grappling with the practicalities of governing 270 million people, and navigating the pressures of a rapidly changing world. From the sacred hills of Borobudur to the policy chambers of Jakarta, the month offered a vivid portrait of a country in motion.

Banyuwangi Converts Main Road into Cycling Race Circuit to Foster Sport Tourism

Banyuwangi Regency in East Java has transformed its central thoroughfare into a high-speed cycling circuit for the Banyuwangi Criterium League (BCL), enhancing regional sport tourism infrastructure. The event, running from 29 to 31 May 2026, features multiple categories and attracts hundreds of athletes, showcasing the area's strategic use of urban spaces for economic development.

The Indonesian Economy in Review (May 2026)

May 2026 will be remembered as a month in which Indonesia's economic resilience was tested by an unusually sharp convergence of external shocks and domestic structural pressures.

PWNU DKI States President Permitted to Use State Budget for Sacrificial Cattle

The PWNU DKI has affirmed President Prabowo's use of state funds for Eid al-Adha sacrificial cattle is permissible under Islamic jurisprudence, citing historical precedent through the Banpres programme. The initiative supports livestock farmers and addresses malnutrition, though critics urge inclusive aid for non-Muslim communities to ensure social equity.

Community Economy Strengthening: A Focus of Modern CSR Programmes

PT PLN Energi Gas has been awarded the TOP CSR Awards 2026 #Star 3 for its sustainable community-focused initiatives, which align with national energy transition and ESG principles. The company's programmes in community empowerment, environmental development, and education demonstrate how corporate social responsibility drives both social impact and business sustainability. This recognition underscores the growing importance of integrating CSR into core business strategies for inclusive growth.

Samsung Overhauls Galaxy Z Fold Naming Convention for New Foldable Models

Samsung is reportedly changing its Galaxy Z Fold naming convention, introducing the Galaxy Z Fold 8 and Galaxy Z Fold 8 Ultra models. The Ultra variant will feature enhanced specifications, including a 5,000 mAh battery and triple rear cameras, while the standard Fold 8 will adopt a 4:3 aspect ratio for a tablet-like experience. Both devices are expected to launch in July 2026, running Android 17 with One UI 9.

Indonesian Politics in Review (May 2026)

May 2026 drew to a close with Indonesia's political landscape shaped by solemn remembrance, assertive diplomacy, rising institutional anxieties, and a series of legislative and economic measures whose long-term implications are only beginning to crystallise.

Indonesian Business and Investment in Review (May 2026)

May 2026 proved to be one of the most consequential months for Indonesian business and investment in recent memory, defined by bold structural reform, intensified diplomatic engagement, and a financial market under considerable strain.

Bandung Faces Waste Crisis as City Government Seeks Emergency Status

Bandung City Government has requested emergency status from West Java Province due to overwhelming waste volumes during recent holidays, straining its reliance on the Sarimukti TPPA facility. With no dedicated landfill, the city depends on provincial quotas, and an emergency declaration would enable swift policy actions, though public cooperation remains vital.

This Week in the Indonesian Economy (25-31 May 2026)

The week ending 31 May 2026 delivered a dense cluster of economic signals, policy shifts, and market anxieties that collectively paint a picture of an Indonesia navigating choppy external waters while pressing ahead with ambitious domestic reforms.

Two Motorcyclists Killed in Head-On Collision in Kupang

Two motorcyclists died in a head-on collision on the Batakte-Tablolong road in East Nusa Tenggara. Police confirmed the incident occurred around 10:30 PM on 31 May 2026, with one rider speeding without headlights and the other approaching from the opposite direction at high speed. The collision was unavoidable due to the narrow distance and dark road conditions, resulting in severe damage to both vehicles.

This Week in Indonesian Politics (25-31 May 2026)

The week of 25--31 May 2026 was bookended by solemnity and ceremony: the nation mourned the passing of a distinguished soldier-statesman, marked the eve of Pancasila Day with reflection on national identity, and grappled with a raft of consequential economic policy shifts, all while the international order continued its turbulent unravelling in ways that Indonesia can scarcely afford to ignore.

This Week in Indonesian Business and Investment (25-31 May 2026)

The final week of May 2026 proved to be one of the most consequential in recent Indonesian economic history, with a cascade of sweeping policy announcements, landmark diplomatic deals, and turbulent market conditions converging to define the near-term trajectory of Southeast Asia's largest economy.

Indonesia One Step Closer to Procuring Neighbouring Countries' Missiles, Latest Update

Indonesia and Vietnam are nearing final agreements with India to procure BrahMos supersonic cruise missiles, with Vietnam's deal reportedly already signed but awaiting official announcement. Indian Defence Minister Rajesh Kumar Singh highlighted that such advanced technology transfers are reserved for trusted partners, emphasising India's commitment to regional defence cooperation amid geopolitical uncertainties.