Indonesian Political, Business & Finance News

Archive: 24 June 2026

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Healthcare Spending Soars to Rp640 Trillion as Patient Numbers Rise

Indonesia's healthcare spending has surged to Rp640 trillion, driven by an ageing population and increased demand for medical services. Health Minister Budi Gunadi Sadikin noted the sector's annual growth of 9-11% over the past decade, outpacing the President's 8% economic growth target. The government is now focusing on building national health resilience, particularly in pharmaceuticals, vaccines, and medical devices, to reduce import dependency.

Witness Admits Creating Fictitious Invoices in LPEI Corruption Case

A former sales manager has testified in a Jakarta corruption court that he created fictitious invoices and transaction documents at the direction of his superior. The documents, which included fake sales of palm oil and fresh fruit bunches, were part of an alleged scheme to fraudulently obtain export financing from the Indonesian Export Financing Agency (LPEI). The state is estimated to have suffered losses of Rp992.8 billion in the case.

Customs and Excise Destroys 44 Million Illegal Cigarettes Worth IDR 65 Billion

Indonesia's Directorate General of Customs and Excise, in collaboration with the West Java provincial government, has destroyed 44 million illegal cigarettes valued at IDR 65.18 billion. The operation prevented an estimated IDR 32.95 billion in potential state losses. The destroyed goods were seized between July 2025 and May 2026, highlighting ongoing efforts to combat illicit tobacco trade.

Wintermar Acquires Full Control of Fast Offshore Supply, Adding Five DP Crew Transfer Vessels

PT Wintermar Offshore Marine Tbk (WINS) has acquired the remaining stakes in Singapore-based Fast Offshore Supply and its Indonesian subsidiary, gaining full control and adding five newbuild DP crew transfer vessels to its fleet. The vessels are secured under a long-term charter with a major oil company in Brunei, while a separate shipbuilding contract for five additional units will create a new revenue stream. The acquisition, valued at US$33 million and compliant with OJK regulations, will lower the average fleet age and strengthen Wintermar's position in the Asian offshore support vessel market.

Ministry urges farmers to drive low-emission agriculture shift

Indonesia's Ministry of Agriculture is calling for farmers to be empowered as the main drivers in the transition to low-emission agriculture, emphasising capacity building, technological support, and climate finance. The government is promoting innovations like drones and digital monitoring to cut methane emissions from rice farming while boosting productivity. Officials also highlighted the need for increased global climate funding for smallholders and the role of the G20 Bali Global Blended Finance Alliance in mobilising resources.

OJK Issues Regulation on Financial Influencers to Protect the Public

Indonesia's Financial Services Authority (OJK) has issued a new regulation governing financial influencers to ensure the public receives clear, accurate, and responsible information. The rule sets standards for marketing collaborations and requires proper licensing for those providing investment recommendations. This move aims to strengthen consumer protection and prevent misleading financial advice.

Embezzled Auction Funds of Rp 2 Billion, Former Kudus District Court Chief Dismissed

The Supreme Court and the Judicial Commission have dishonourably discharged a former head of the Kudus District Court for embezzling Rp 2 billion in auction funds. The Judicial Honour Panel found the judge guilty of using the entrusted money for personal gain and committing other procedural violations. The ruling underscores a zero-tolerance policy towards breaches of judicial integrity.

Karangasem Extends Contracts of 2,442 PPPK, Regent Warns Against Pawning Appointment Decrees

The Karangasem Regency Government has extended the employment contracts of 2,442 Government Employees with Work Agreements (PPPK) for a further five years. Regent I Gusti Putu Parwata personally handed over the decrees and cautioned recipients against pawning them for online gambling. He urged the employees to view the extension as a trust mandate to enhance public service and maintain discipline.

Indonesia Promotes High-Integrity Carbon Market and Strengthens Global Peatland, Mangrove Centres

Indonesia has reinforced its global leadership in forestry and climate action by outlining three strategic agendas at the Forest and Climate Leaders’ Partnership (FCLP) forum in London. Forestry Minister Raja Juli Antoni emphasised the need to translate climate ambitions into measurable actions through the development of a high-integrity carbon market, the strengthening of the International Tropical Peatland Center (ITPC), and the expansion of the World Mangrove Center (WMC). The initiatives aim to leverage Indonesia's vast tropical peatlands and mangrove ecosystems—which account for a significant portion of the world's carbon storage—to attract sustainable financing and foster international collaboration.

Berau DPMPTSP Maximises Investment Partnerships and Local MSMEs, Large Companies ...

The Berau Regency government is strengthening partnerships between large companies and local micro, small, and medium enterprises (MSMEs) to foster a healthy and sustainable investment climate. This initiative aligns with new central government regulations aimed at creating an inclusive business ecosystem and ensuring investments deliver tangible benefits to local communities. The local investment office is also urging companies to formally document existing collaborations to enhance transparency and effectiveness.

Jakarta's Urban Farming Festival to showcase modern agricultural technology

The Jakarta Food Security, Marine and Agriculture Agency (KPKP) will hold an Urban Farming Festival in July 2026 to promote modern agricultural technology and change the perception that farming is dirty. The free event at Istora Senayan will feature exhibitions, training, and talks on topics ranging from zero-waste business to zoonotic diseases. Officials hope the festival will boost the profile of local farmers' products and attract younger generations to urban agriculture.

395,531 Discounted School Holiday Train Tickets Still Available, KAI Reminds Passengers to Pack Light

As the school holiday travel rush continues, state railway operator PT KAI reports that over 395,000 discounted tickets remain available out of a total quota of 1.17 million. The company is urging passengers to adhere to baggage regulations, limiting free carry-on items to 20 kg and specific dimensions, to ensure comfort and safety during the busy period.

Prabowo receives KTNA's highest farmers-fishermen award

President Prabowo Subianto was awarded the Adhi Bhakti Tani Nelayan Maha Utama Gold Badge by the Indonesian Farmers and Fishermen Association (KTNA) for his support of agricultural and fisheries advancement. The honour was presented during the PENAS XVII national gathering in Gorontalo, where KTNA leaders praised government programmes benefiting farmers and fishermen. The event serves as a key forum for exchanging innovations and strengthening collaboration to bolster national food security.

Why Indonesia Needs a Policy Guarantee Programme

Indonesia is moving to establish a Policy Guarantee Programme (PPP) by 2027 to restore public trust in the insurance industry following several high-profile defaults. The programme, managed by the Indonesia Deposit Insurance Corporation (LPS), follows international standards where such schemes have proven essential for consumer protection and financial stability. Global experience shows that insurance guarantee schemes not only safeguard policyholders but also contribute to industry growth and increased public confidence.

BGN Dismisses Claims of 100 Fictitious Nutrition Service Points in Cilacap as Invalid

The National Nutrition Agency (BGN) has refuted allegations that 100 nutrition service points (SPPG) in Cilacap are entirely fictitious. Regional Coordinator Reza Mahendra stated the sites were officially registered before a moratorium on new SPPG was imposed, though he acknowledged some had stalled in construction. The agency is currently focusing on refocusing beneficiary programmes rather than adding new service points.

Indonesia Offers Investment Opportunities in EV Battery Development Worth USD 121 Billion

Indonesia is courting global investors to build a domestic electric vehicle battery manufacturing ecosystem valued at USD 121 billion, leveraging its vast reserves of nickel, bauxite, manganese, and copper. The government aims to become one of the world's top five EV battery producers by 2045 through its downstreaming strategy, which can multiply nickel's value 67-fold. The integrated supply chain is expected to reduce costs and attract major battery players, with total national investment potentially reaching USD 618 billion.

Video: Insurance Claims Rise, AAJI Reveals Causes and Impacts

The Indonesian Life Insurance Association (AAJI) has addressed the recent increase in insurance claims, attributing it largely to maturing policies and expressing optimism for the sector's resilience in 2026. Traditional products continue to drive growth, supported by expanded distribution channels and unit-linked sales to financially literate segments. The association emphasised the need for prudent asset and investment management amid the rising claim obligations.

Minister Amran Guarantees Rice Stocks Secure Until May Next Year

Indonesia's Minister of Agriculture and Head of the National Food Agency, Andi Amran Sulaiman, has assured that government rice reserves (CBP) are secure until May 2027, with current stocks exceeding 5 million tonnes. This record stockpile is intended to stabilise supply and prices amid potential El Niño weather disruptions. Despite a marginal projected decline in 2026 production, the government estimates a surplus of 4 million tonnes, ensuring ample supply for national consumption.

Indonesia strengthens vocational education links with industry

Indonesia's Ministry of Manpower is deepening ties between vocational education and industry to build a more competitive workforce. A new cooperation agreement between the Polytechnic of Manpower and Huawei will align curricula with industry needs, enhance lecturer training, and expand internship opportunities. Officials emphasised that such human resource development is a long-term investment crucial for the nation's future competitiveness.

Prabowo Challenges Critics of Free Nutritious Meals Programme: Come and Ask the Children!

President Prabowo Subianto has challenged critics of his flagship Free Nutritious Meals (MBG) programme to visit the field and ask children, farmers, and fishermen directly whether they need it. Speaking at a national farmers' and fishermen's event in Gorontalo, he argued that nothing is more urgent than addressing hunger. He also highlighted global food crisis warnings from the UN and noted that Indonesia is now able to export food to assist other nations.

Observer: Political Party Coalition Not Yet Enthusiastic About Backing Prabowo-Gibran for Two Terms

A political analyst notes that parliamentary parties have responded coolly to the idea of endorsing Prabowo Subianto and Gibran Rakabuming Raka for a second presidential term in 2029. The lukewarm reaction is attributed to the public's inability to discern Gibran's concrete achievements as vice president, contrasting with Prabowo's more visible performance. Only the Indonesian Solidarity Party (PSI) has openly supported the two-term proposal, while other major parties remain focused on backing the current administration without explicitly committing to the pair's re-election.

Learning from Covid, ASEAN Prepares Strategy for Future Pandemics

ASEAN nations are formulating a strategy to bolster regional vaccine production and health resilience in anticipation of future pandemics. The initiative, discussed at a forum led by Indonesia's National Economic Council, aims to prevent the supply chain disruptions experienced during the Covid-19 crisis. Key proposals include building robust local pharmaceutical manufacturing capabilities and establishing mutual recognition agreements for faster distribution of medical products across member states.

Mulawarman University Students Protest Deputy Human Rights Minister's Visit

Students at Mulawarman University in Samarinda staged a protest against Deputy Human Rights Minister Mugiyanto, a former pro-democracy activist, during his campus visit. The demonstrators demanded the resolution of past human rights violations, including enforced disappearances from the New Order era. University officials stated the event proceeded safely and that students were permitted to voice their aspirations.

Maxim partners with Cheshire Foundation for more inclusive disability services

Indonesian ride-hailing firm Maxim has signed an agreement with the Cheshire Foundation Indonesia to expand support for people with disabilities, particularly those with physical impairments. The partnership includes providing transport assistance, offering commission-free partnership opportunities for disabled drivers, and showcasing modified vehicles to improve accessibility and economic independence.

PLN Papua boosts power by 555 kVA to support Kwaingga Regional Hospital services

State electricity firm PLN has increased the power supply by 555 kVA to Kwaingga Regional General Hospital in Keerom Regency, Papua, to support its expanding modern medical facilities. The upgrade aims to ensure stable electricity for critical services such as operating theatres, CT scans, and catheterisation laboratories. Both PLN and hospital management emphasised that reliable power is essential for patient safety and improving healthcare quality in the region.

OJK: MSCI Review Reflects Global Confidence in Indonesian Capital Market

Indonesia's Financial Services Authority (OJK) stated that the MSCI's latest review demonstrates global investor confidence in the nation's economic resilience and capital market reforms. While MSCI acknowledged improvements in transparency and maintained Indonesia's emerging market status, it warned of a potential reclassification to frontier market if insufficient progress is observed by November 2026.

Two Kopdes and Fishing Village Candidate Managers Die, DPR Demands Total Evaluation

Two candidates for the management of the Red and White Village Cooperatives (Kopdes) and Fishing Villages have died during basic military training, prompting a member of the House of Representatives (DPR) to call for a thorough evaluation of the programme. The politician stressed that health checks must be mandatory for all participants and suggested the training should focus more on cooperative management skills rather than rigorous military-style physical drills. The Ministry of Defence confirmed one of the deaths was caused by heat stroke.

The Difference Between Pawning Value and Asset Value of Gold

A financial executive highlights widespread public misunderstanding between the loan value of pawned gold and its actual market value. This confusion can lead to poor financial decisions, particularly when using gold as collateral for short-term funding needs. Improved financial literacy is seen as crucial for helping individuals make more informed choices about their assets.

Roy Suryo Files Pretrial Motion, Polda Metro Responds

Roy Suryo has filed a pretrial motion at the South Jakarta District Court challenging his arrest and house search by Polda Metro Jaya investigators. The police have stated they are ready to attend proceedings once formally summoned, though they have not yet received the official notice. The case stems from allegations of defamation and slander related to the authenticity of former President Joko Widodo's academic certificates.

From Koningsplein Stop to Capital's Modern Gateway: Gambir Station Serves 2.60 Million Passengers in Jan–May 2026

Gambir Station in Central Jakarta recorded a 12 percent year-on-year increase in passenger traffic, serving over 2.6 million people in the first five months of 2026. The station's evolution from a small colonial-era halt to a modern elevated long-distance rail hub mirrors the development of the capital itself. KAI continues to enhance digital services and passenger facilities to support its role as a primary gateway for intercity travel across Java.

Bakom: 307 Students Become First Cohort at SMA Unggul Garuda Baru

The Indonesian Government Communication Agency (Bakom) announced that 307 high-achieving students have been selected as the inaugural cohort for the new SMA Unggul Garuda Baru schools. These four elite senior high schools, located in Bangka Belitung, East Nusa Tenggara, Southeast Sulawesi, and North Kalimantan, aim to provide top-tier education in underserved regions. The programme is part of a long-term government investment to cultivate a competitive generation of future leaders.

Bank Credit Surges, Unexpected Sector Becomes Main Engine

Indonesian bank lending growth accelerated to 10.8% year-on-year in May 2026, its highest in two years, driven primarily by a 20.5% surge in investment credit. The construction sector saw an extraordinary 65.1% jump in investment loans, likely fuelled by new, decentralised government programmes like the Merah Putih Village Cooperative initiative rather than large-scale toll road projects.

Prabowo Highlights the Plight of Indonesian Farmers

President Prabowo Subianto addressed thousands of farmers and fishermen at the PENAS event in Gorontalo, reaffirming his commitment to their welfare. He recounted how his political struggle was driven by a belief that past economic policies, influenced by neoliberalism, neglected small farmers and producers. Prabowo emphasised that food producers are the foundation of the nation and that the state must ensure their prosperity.

Pezeshkian: Missile Arsenal Prevents Iran from Suffering Gaza's Fate

Iranian President Masoud Pezeshkian has firmly ruled out any negotiations over the country's defence and deterrence capabilities, stating its missile programme is non-negotiable. Speaking in Islamabad, he argued that Iran's military strength has prevented it from suffering a fate similar to Gaza. He also criticised Western nations for hypocrisy regarding their human rights claims.

Prabowo: B50 Launching Soon, We Will No Longer Import Diesel!

President Prabowo Subianto announced the imminent launch of B50 biodiesel, a fuel blend containing 50 percent palm oil, which he claims will end Indonesia's need for diesel imports. Speaking at a national farmers and fishers event in Gorontalo, he projected the country will achieve full energy self-sufficiency within three to four years.

Rejected by Attorney General's Office, Sony Sonjaya Now Knocks on LPSK's Door for Justice Collaborator Status

Former Deputy Head of the National Nutrition Agency, Sony Sonjaya, has applied to the Witness and Victim Protection Agency (LPSK) for justice collaborator status after his initial request was rejected by the Attorney General's Office. The LPSK confirmed it is reviewing the application and will coordinate with relevant parties, including the Attorney General's Office, before making a decision. The Attorney General's Office previously denied the request, considering Sony a key figure with significant responsibility in the alleged corruption case involving the Free Nutritious Meals programme.

BMKG Strengthens Impact-Based Early Warning System to Reduce Disaster Risk

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) is enhancing its early warning system by implementing Impact-Based Forecasting (IBF) to provide more detailed risk assessments down to the village level. The new system, supported by artificial intelligence and real-time data, will offer daily forecasts for up to 10 days and short-term nowcasting updates every 10 minutes. The initiative aims to shift from simply predicting weather to outlining its potential impacts and recommended actions, supporting sectors from disaster mitigation to infrastructure development.

Integrated National Schools to Feature World-Class Facilities

Indonesia's Ministry of Elementary and Secondary Education has announced that the Integrated National Schools (SNT) proposed by President Prabowo Subianto will be equipped with facilities meeting international standards. The initiative aims to produce globally competitive graduates by transforming infrastructure, human resources, and teaching methods. The schools will also serve as regional centres for teacher training and curriculum development.

Indonesia Forecast to Become a Major Global Player in Rare Earth Metals

Indonesia is poised to become a leading global player in rare earth metals, driven by its substantial untapped raw material resources. The government is preparing strategic steps, including institutional formation and regulatory support, to accelerate the development of the national rare earth industry. Parliamentary oversight will soon intensify, with plans to summon relevant agencies to ensure the swift execution of these plans.

House Approves Free Nutritious Meals for TB Patients, But Insists Funding Must Come from Health Ministry

Indonesia's House of Representatives has endorsed a proposal to extend the Free Nutritious Meal programme to tuberculosis patients, citing the need to boost their immunity during treatment. However, legislators stressed that the funding must be allocated from the Health Ministry's budget, not the education budget currently used to feed schoolchildren.

School Fees Keep Rising, Education Funds Must Be Prepared Early

Rising education costs in Indonesia are making early financial planning essential for families. Data from the Central Statistics Agency shows average annual school fees range from Rp4.56 million at primary level to Rp10.19 million at senior high level, with significant disparities across income groups. IFG Life urges parents to incorporate education fund planning into family finances from an early stage to safeguard children's schooling against potential financial risks.

Chicken Prices Below Production Cost: Permindo Calls for Import Feed Governance Review

The Indonesian Independent Farmers Association (Permindo) is urging the government to evaluate the governance of imported animal feed raw materials, citing a structural crisis that has pushed live chicken prices far below production costs. Farmers are currently facing losses of Rp 5,000–Rp 7,000 per kilogram due to a 'cost-price squeeze' driven by rising feed costs and a weakened bargaining position. The organisation warns that panic selling and concentrated import mechanisms are threatening the sustainability of smallholder poultry businesses and national food security.

OJK: General Insurance Investment Performance Positive Amid Market Volatility

Indonesia's Financial Services Authority (OJK) reports that the general insurance industry's investment performance remained positive as of April 2026, with conventional yields rising to 0.55 percent. The regulator highlighted the sector's resilience amid dynamic market conditions, while cautioning that future challenges include managing risks from global economic shifts and interest rate changes.

OJK Issues Regulation on Financial Influencers, Outlines Scope of POJK 6/2026

Indonesia's Financial Services Authority (OJK) has issued Regulation POJK 6/2026 to govern the conduct of financial influencers (finfluencers). The regulation aims to ensure that information shared with the public is clear, accurate, and not misleading, while strengthening consumer protection. It sets out guidelines for finfluencers' behaviour, including their collaboration with financial service providers and the requirement for licences when providing financial recommendations.

OJK Issues New Regulation Governing Financial Influencers

Indonesia's Financial Services Authority (OJK) has issued a new regulation, POJK No. 6/2026, to govern the conduct of financial influencers. The rule aims to ensure that information provided to the public is clear, accurate, and not misleading, while also enhancing consumer protection. It sets out basic behavioural standards, mandates the use of educational management systems, and clarifies the responsibilities of financial firms that collaborate with influencers.

Education Ministry Proposes Central Government Manage Early Childhood to Senior Schools in National Education Bill

Indonesia's Ministry of Primary and Secondary Education has proposed granting the central government authority to establish and manage schools from early childhood to senior secondary levels under the revised National Education System Bill. The proposal, presented to House Commission X, aims to create model schools for strategic national needs without overriding regional autonomy. It also includes an asymmetric decentralisation clause allowing temporary central intervention in underperforming regions.

Tax Fraud: PT SDE Director Sentenced to 3 Years in Prison and Fined Rp6.64 Billion

A director of PT SDE has been sentenced to three years in prison and fined Rp6.64 billion for using fictitious tax invoices to evade Rp3.32 billion in value-added tax. The fraud involved illegal fuel trading and the use of 30 fake invoices from four companies. The tax office stated the verdict reinforces its commitment to fair and consistent law enforcement to protect state revenue.

22 Prospective Newlyweds in Sidoarjo Test Positive for HIV, Health Office Stresses Importance of Screening

Pre-marital health screening in Sidoarjo Regency has identified 22 prospective newlyweds as HIV positive, prompting the local health office to reinforce the critical need for such checks. The early detection allows for immediate medical intervention and planning to prevent transmission to partners and future children. Authorities are providing antiretroviral therapy and psychological support while urging the public to avoid stigmatising those living with HIV.

Small Businesses Must Submit Semester I 2026 Investment Activity Report by 15 July 2026

Indonesia's Ministry of Investment has set a 15 July 2026 deadline for small-scale businesses to submit their Semester I Investment Activity Reports (LKPM) via the OSS system. The regulation, based on Law 25/2007 and Ministerial Regulation 5/2025, mandates reporting on investment realisation, employment, and production, while exempting micro-scale enterprises. Non-compliance will result in graduated administrative sanctions.

House Urges Maximum Penalties, Including Chemical Castration, for Torture Suspect Taufik Hidayat

Indonesian lawmakers are demanding the harshest possible legal sanctions against Taufik Hidayat, a suspect in the prolonged torture and confinement of a 29-year-old woman. Commission III of the House of Representatives has called for layered charges and even chemical castration, citing the brutality of the crime and the suspect's history of violence against his former wife. The police have arrested the suspect after a manhunt, and legislators are urging authorities to open a complaint post for other potential victims.