Indonesian Political, Business & Finance News

Archive: 24 June 2026

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OJK Urges Prudent Underwriting Amid Plans to Lower Microcredit Interest Rates

Indonesia's Financial Services Authority (OJK) has called on the guarantee industry to maintain prudent risk management despite government plans to reduce microcredit interest rates to 8 percent. The regulator emphasised the need for strengthened underwriting, portfolio monitoring, and risk-based pricing to balance business expansion with financial stability. The move comes as the government targets Rp320 trillion in small business loans (KUR) this year, presenting both growth opportunities and potential risks for the sector.

KPK Identifies Corruption Risks in BPJS Employment Programme Governance

Indonesia's Corruption Eradication Commission (KPK) has identified multiple corruption risks in the governance of the BPJS Ketenagakerjaan programme, including fraud in participant registration and claim mechanisms. The anti-graft body also highlighted regulatory gaps under the Ministry of Manpower's authority, such as unclear worker classifications and weak supervision. KPK has recommended strengthening regulations, improving data integrity, and enhancing internal controls to safeguard the social security system.

Roy Suryo files pretrial motion over arrest in alleged defamation case

Roy Suryo has filed a pretrial motion at the South Jakarta District Court challenging the legality of his arrest and the search of his home by Polda Metro Jaya investigators. The motion, registered alongside a similar challenge by Tifauzia Tyassuma, contests the forced measures taken in connection with an alleged defamation case regarding the authenticity of President Joko Widodo's diploma. The hearing is scheduled for Monday, 29 June.

KPK to Question BPOM and Trade Ministry Officials Over Alleged Customs Bribery Flow

Indonesia's Corruption Eradication Commission (KPK) is set to investigate officials from the Food and Drug Supervisory Agency (BPOM) and the Ministry of Trade following revelations in a customs bribery trial. Testimony indicated that funds from PT Blueray Cargo were allegedly distributed to individuals within both agencies, beyond the previously known recipients at Customs and Excise. The KPK will verify the court disclosures through further witness examinations and evidence gathering.

Ojek Online Commission Cut to 8 Percent, House Deputy Speaker: Result of a Long Struggle

The Indonesian government has mandated a new profit-sharing scheme for ride-hailing services, effective 1 July 2026, capping application companies' commission at 8 percent. House Deputy Speaker Cucun Ahmad Syamsurijal hailed the policy as a victory for drivers' welfare, confirming major operators Gojek and Grab are prepared to comply. The regulation aims to boost drivers' purchasing power and establish a fairer standard in the nation's gig economy.

Former Hajj Director General Hilman Latief Re-examined by KPK in Hajj Quota Case

Indonesia's Corruption Eradication Commission (KPK) has questioned former Hajj Director General Hilman Latief for a third time as a witness in the alleged corruption of special hajj quotas. The investigation aims to complete case files for four suspects, including former Religious Affairs Minister Yaqut Cholil Qoumas. The case involves an estimated state loss of Rp 622 billion.

US Senate Approves Resolution to End Trump's War with Iran

The US Senate has passed a symbolic resolution demanding an end to President Trump's military actions against Iran, marking a rare bipartisan rebuke. The measure directs the withdrawal of forces unless Congress explicitly authorises continued hostilities, though its legal force remains uncertain.

DPR Appreciates Baznas' Role in Poverty Alleviation Through Zakat Management

Indonesia's House of Representatives (DPR) has praised the National Amil Zakat Agency (Baznas) for its effective distribution of zakat funds, which has provided tangible benefits to communities and supported poverty reduction efforts. The DPR expressed hope that upcoming regulatory revisions would grant Baznas greater authority to optimise its nationwide programmes. Baznas leadership affirmed its commitment to continuous improvement and alignment with presidential priorities.

The Meaning of Consulate Gatherings for Gontor Students

Monthly consulate meetings at Pondok Modern Darussalam Gontor serve as more than routine assemblies; they are a vital educational tool fostering Islamic brotherhood, solidarity, and a sense of family among students from diverse regions. These gatherings help students overcome homesickness and build lasting bonds that extend into alumni networks, reinforcing communal responsibility and shared identity.

When Tradition and Economics Determine the Nation's Future

Low participation in higher education in Indonesia, driven by entrenched cultural norms and economic barriers, threatens the country's human resource quality and long-term development. The author argues that without a highly educated workforce, Indonesia will struggle to process its abundant natural resources domestically and achieve advanced nation status. A call is made for the government to properly allocate the mandated 20% of the state budget to education and expand free university opportunities for the underprivileged.

UK PM Starmer Holds First Meeting with Andy Burnham Amid Leadership Transition

Outgoing UK Prime Minister Keir Starmer met with Andy Burnham for the first time following Burnham's by-election victory, as the transition of power begins. Burnham has been granted access to civil service briefings ahead of his expected candidacy in the Labour Party leadership contest. The government will operate in a caretaker capacity, refraining from major policy decisions until a new prime minister is selected.

Multiple Motorcycles Without Documents Seized in Central Jakarta Police Operation

The Central Jakarta Metro Police conducted a 'Cipta Kondisi' operation early Wednesday morning, deploying 144 personnel to patrol several districts. While no narcotics or weapons were found, a number of motorcycles lacking proper documentation were impounded for further inspection. The police chief emphasised the operation's role as a preventive measure to maintain public order and security.

LNG Price Fluctuations Confirmed to Track Global Oil Prices

An oil and gas expert has clarified that liquefied natural gas (LNG) prices are inherently volatile, driven by spot market indices like the Japan Korea Marker (JKM), which has surged 111 per cent in 2026. Contract-based LNG prices, including those from Indonesia, are typically linked to oil price benchmarks such as the Indonesian Crude Price (ICP) or Brent crude. The price increases are a global phenomenon, with industrial LNG prices in the Philippines and Vietnam also reaching elevated levels.

New SIM Card Registration Without KK Number to Begin Next Week

Starting 1 July 2026, Indonesia will implement a new biometric SIM card registration system using facial recognition and the National Identity Number (NIK), replacing the old method that required the Family Card number (NoKK). Major operators Telkomsel, XLSmart, and Indosat Ooredoo Hutchison have confirmed their readiness for the new regulation.

Bali Strengthens Medical Tourism with South Korean Clinic Opening in Sanur Health SEZ

Bali's push to become a premier Asian medical and wellness tourism hub is gaining momentum with the arrival of South Korean specialist clinic Hestia Intimate Rejuvenation at the Sanur Health Special Economic Zone. The collaboration with The Solitaire Bali aims to provide world-class women's health services locally, reducing the need for Indonesians to travel abroad for premium aesthetic care. This development is expected to curb outbound medical tourism and attract international patients to Indonesia.

Meta Appoints Cred Founder Kunal Shah as New WhatsApp Head

Meta has named Kunal Shah, founder of Indian fintech startup Cred, as the new head of WhatsApp, succeeding Will Cathcart after seven years. The leadership change coincides with a US$900 million investment by Meta into Cred, valuing the bill-payment platform at US$4.5 billion. The move aligns with Meta's broader strategy to diversify revenue beyond advertising through subscriptions and AI services.

Indonesia and UK Cannot Walk Alone, Collaboration is Key

Despite over 70 years of diplomatic relations and a newly signed Economic Growth Partnership, trade and investment between Indonesia and the United Kingdom remain suboptimal. Tariff reform is now a key focus to unlock broader market access and boost industrial competitiveness.

Moments as Residents Detain Man for Harassing Motorcycle Taxi Driver in Bogor

A 56-year-old man was apprehended by a motorcycle taxi driver and local residents in Bogor after allegedly sexually harassing the driver in a public park. The incident, which was captured on video and went viral, shows the suspect attempting to resist before being handed over to the police. Authorities confirmed the suspect touched the victim's thigh and genitals during a conversation.

Consumer Group Urges BPOM to Review New Nutritional Labelling Regulation

Forum Warga Kota (FAKTA) Indonesia has called on the Food and Drug Monitoring Agency (BPOM) to revoke and review its new regulation on nutritional labelling, arguing it contradicts health laws and confuses consumers. The group criticises the dual labelling system for processed foods and sugary drinks, claiming it prioritises industry interests over public health. FAKTA insists a single, simplified warning label system is needed to combat non-communicable diseases and support Indonesia's human development goals.

100 Fictitious SPPG Sites Found in Cilacap, Including One in a Cemetery

Acting Regent of Cilacap, Ammy Amalia Fatma Surya, has revealed that approximately 100 out of over 300 registered locations for the National Nutrition Fulfilment Service (SPPG) programme are suspected to be fictitious. Field inspections found no buildings at these sites, with some registered in forests, rice fields, and even a cemetery. The findings have strengthened suspicions of a practice involving the sale and purchase of programme points, prompting a temporary halt to new SPPG registrations in the district.

Amphuri Urges Government to Involve Associations in Drafting Regulations

The Indonesian Muslim Hajj and Umrah Organisers Association (Amphuri) has called on the Ministry of Hajj and Umrah to include industry associations in formulating implementing regulations for the new Hajj and Umrah Law. The association argues that such involvement is crucial to ensure the rules accommodate pilgrims' needs and support the sustainability of the business ecosystem. Amphuri also urged stronger enforcement against unlicensed umrah operators and clarity on technical rules for pilgrim guides.

UN Security Council Unanimously Adopts Resolution on Accountability for Attacks on Peacekeepers

The United Nations Security Council has unanimously adopted a resolution aimed at strengthening accountability for crimes against UN peacekeeping personnel. The resolution, co-drafted by Pakistan and Denmark, condemns all attacks on peacekeepers, warns such acts may constitute war crimes, and calls on host nations to investigate and prosecute perpetrators.

Eddy Soeparno Urges Legal Certainty to Prevent Investor Exodus

MPR Deputy Speaker Eddy Soeparno has called for urgent regulatory reform following warnings that investment outflows could threaten 50,000 jobs. He stressed that Indonesia must accelerate bureaucratic transformation and ensure legal certainty to remain competitive in attracting and retaining global capital. The senior PAN politician argued that a stable, predictable business climate is essential for national economic growth and job creation.

Farmers and Fishermen Enthusiastically Welcome Prabowo at PENAS XVII in Gorontalo

President Prabowo Subianto received a warm welcome from farmers and fishermen during the 17th National Farmers and Fishermen Week (PENAS) in Gorontalo. The event featured strategic agendas including innovation exchange, policy dialogue, and business partnership strengthening aimed at boosting national food productivity and self-sufficiency. Several key cabinet ministers and top military and police officials were also in attendance.

Jakarta's 499th Anniversary: PAM JAYA and TP PKK Host Free Circumcision for 2,000 Children

To mark Jakarta's 499th anniversary, the city's water utility PAM JAYA and the Family Welfare Movement (TP PKK) are organising a free mass circumcision programme for 2,000 children across six locations, including the Thousand Islands. The initiative aims to ease the financial burden on families and promote child health, reflecting a collaborative spirit of social care. The programme will run from late June to early July 2026, with each participant receiving a t-shirt, meal package, and post-procedure garment.

Wamensos Agus Jabo Supports Film on Sekolah Rakyat as a Tool for Public Communication

The Ministry of Social Affairs is backing a short film project titled 'Penjaga Harapan' to communicate the values of the Sekolah Rakyat programme to the public. The film will depict the transformative journey of a child from an underprivileged family gaining access to education. Officials emphasise that the initiative is designed to show the state's presence in providing hope and breaking the cycle of poverty through boarding school education.

BI Official Reveals 'Secret' to Cohesion with Finance Minister, OJK, and LPS

Bank Indonesia Senior Deputy Governor Destry Damayanti has detailed the close coordination between the central bank, the Ministry of Finance, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS). The institutions maintain synergy through the Financial System Stability Committee (KSSK), which meets quarterly, and through the government's participation in BI's monthly board meetings. This collaboration ensures alignment on issues ranging from state budgeting to rupiah stability and banking sector health.

OJK Pledges to Strengthen Capital Market Reforms Following MSCI Review

Indonesia's Financial Services Authority (OJK) has committed to intensifying capital market reforms after MSCI maintained the country's emerging market status but flagged concerns over transparency and coordinated trading. MSCI warned it may consider reclassifying Indonesia to frontier market status if insufficient progress is demonstrated by November 2026.

Badung Predicts Surge in Domicile-Based Junior High School Admissions

The Education Office in Badung Regency, Bali, anticipates a significant increase in applicants for the domicile-based (zonation) pathway for junior high school admissions, as it absorbs students not placed in earlier selection stages. With a total capacity of 8,386 seats and very low acceptance rates in the preceding affirmation and parent transfer pathways, officials expect the final domicile quota to be heavily contested.

South Sulawesi Receives Rp258 Billion Budget Allocation for Regional Road Construction

South Sulawesi has secured Rp258.17 billion from the 2025 Presidential Instruction on Regional Roads programme to build and upgrade roads across 20 districts and cities. The 62.54-kilometre project aims to improve connectivity, reduce logistics costs, and stimulate economic growth in agriculture, fisheries, and tourism. The provincial government emphasised the programme's role in opening access to remote areas and supporting equitable development.

Minister Encourages Asian Tourism Collaboration Through Travel Meet Asia 2026

Indonesia's Tourism Minister Widiyanti Putri Wardhana has called for stronger regional collaboration and strategic partnerships in the tourism sector at the opening of Travel Meet Asia 2026 in Jakarta. The B2B event brings together 1,500 participants, including 500 buyers and 100 exhibitors from 16 countries, to foster partnerships and shape the future of Asian tourism. The minister highlighted tourism's significant economic contribution, citing UN Tourism data showing 1.52 billion international arrivals and USD 18.27 billion in foreign exchange earnings in 2025.

Indonesia's Mineral Exchange and Single-Door Export Policy Should Not Be Seen as Curbing Business

A senior Indonesian lawmaker argues that the government's plan to establish a mineral exchange and a single export channel through PT Danantara should not be viewed as restricting the private sector. He contends the policy is a constitutional effort to reclaim state control over natural resources after decades of liberal market practices. The move also aims to ensure export proceeds are fully repatriated to benefit the national economy.

What Happens if Finance Ministry, BI Become IDX Shareholders?

A capital market expert warns of potential conflicts of interest if Indonesia's Finance Ministry, Bank Indonesia, and Danantara become shareholders of the Indonesia Stock Exchange (IDX), despite a new law allowing it. He recommends minority strategic ownership with strong governance safeguards to maintain the exchange's independence and neutrality.

Profile of Commissioner Arsal: Upholding Integrity and Eradicating Street Crime in Lumajang

Senior Police Commissioner Muhammad Arsal Sahban, a nominee for the 2026 Hoegeng Awards, is recognised for his unwavering integrity and impactful leadership. During his tenure as Lumajang Police Chief, he formed the 'Tim Cobra' task force to successfully combat rampant street crime, including motorcycle theft and cattle rustling. Colleagues attest to his detail-oriented approach and courage in enforcing standards, qualities now applied in his role at the National Police's Precision Operations Centre.

Rupiah weakens on concerns over prolonged high Fed interest rates

The Indonesian rupiah depreciated 0.40 percent against the US dollar on Wednesday morning, driven by market anxiety that the Federal Reserve will maintain high interest rates throughout 2026. Analysts noted that global risk-off sentiment strengthened the dollar, though MSCI's decision to retain Indonesia's emerging market status for its equity market provided some underlying support.

Dalian in the Global Spotlight as Host of Summer Davos for the Ninth Time

Dalian is set to host the World Economic Forum's 17th Annual Meeting of the New Champions from 23 to 25 June, marking the city's ninth collaboration with Summer Davos. The event will gather over 1,700 participants from more than 90 countries to discuss scaling innovation for new growth models. Dalian is leveraging its industrial heritage and research strengths to position itself as a hub for technological innovation and green energy transition.

Lebanon Demands Israeli Withdrawal from South Lebanon

Lebanese negotiators in Washington have demanded the withdrawal of Israeli forces from southern Lebanon, while Israel insists on concrete action against Hezbollah's infrastructure first. A key sticking point remains the sequencing of any pullout, with Israel wanting the Lebanese Army deployed to strategic areas before its troops leave.

Itamar Ben Gvir Criticises US-Iran MoU, Insists Israel Ready to Act Alone

Israeli National Security Minister Itamar Ben Gvir has sharply criticised a memorandum of understanding between the United States and Iran, calling Washington naive for believing Tehran will abandon its nuclear ambitions. He stressed that Israel bears full responsibility for confronting strategic threats and will not be dictated to by external pressure, even from close allies. The remarks underscore deepening diplomatic tensions over differing priorities in managing Middle East stability.

Pegadaian Gold Prices Drop Across All Brands on Wednesday

Gold prices at Indonesia's state-owned pawnshop Pegadaian fell uniformly on Wednesday morning. The Antam, UBS, and Galeri24 brands all recorded declines compared to the previous day's rates. The price adjustments reflect ongoing fluctuations in the precious metals market.

Trilogi University Sets MURI Record for Most Soeharto Sketches

Trilogi University in Jakarta hosted a record-breaking event for the most sketches of former President Soeharto, involving over 1,000 participants to commemorate his 105th birthday. The event, opened by the Minister of Primary and Secondary Education, also featured a national seminar on Soeharto's leadership with prominent speakers including the Minister of Culture.

COMMINFEST 2026: A Platform for Young Communicators to Anchor Change

The Communication Interest Festival (COMMINFEST) 2026, held at Universitas Atma Jaya Yogyakarta, successfully concluded with an awards ceremony celebrating student creativity. The event, themed around students as 'anchors' of communication, featured competitions in five categories and drew participants from major universities across Indonesia. Organisers hope the festival will empower the younger generation to become strong communicators and agents of positive change.

Attorney General's Office Rejects Sony Sonjaya's Justice Collaborator Request

The Indonesian Attorney General's Office has denied a request by corruption suspect Sony Sonjaya to become a justice collaborator in the case involving the mismanagement of the free nutritious meal programme (MBG). Officials stated that Sonjaya is considered a main perpetrator in the alleged graft at the National Nutrition Agency, disqualifying him from the status. The decision was based on prevailing laws and internal guidelines governing whistleblower and collaborator protections.

Turkish Ambassador: Turkey, Saudi Arabia, and Iran Are the Bulwark Against 'Greater Israel'

Turkey's Ambassador to Indonesia warns that the Zionist ambition for a 'Greater Israel' is driving current Middle East escalations. He identifies Turkey, Saudi Arabia, and Iran as key regional powers capable of maintaining balance and notes a new awareness among Muslim nations to strengthen cooperation. The concept of 'Greater Israel' is described as a dangerous project extending far beyond mere geographical expansion.

Indonesia Retains MSCI Emerging Market Status, Now Faces Implementation Test

Indonesia has successfully retained its Emerging Market classification in the MSCI 2026 Market Classification Review, a move seen as positive for the national financial ecosystem. However, analysts warn that the focus now shifts from announcing reforms to proving their effective daily implementation, particularly in transparency and market integrity. The decision acknowledges recent regulatory improvements by OJK, BEI, and KSEI.

Fire destroys two grocery stalls and a house in East Jakarta

A fire broke out in the early hours of Wednesday in Duren Sawit, East Jakarta, destroying two grocery stalls and a resident's home. The blaze, suspected to have been caused by an electrical short circuit, prompted panic but no casualties were reported. The Jakarta Fire and Rescue Service deployed 14 fire engines and 70 personnel, successfully extinguishing the fire within two hours.

Unhas Breaks into World's Top 201–300 in THE Impact Rankings 2026

Hasanuddin University (Unhas) has climbed significantly in the Times Higher Education Impact Rankings 2026, moving from the 401–600 bracket to the 201–300 group globally. The achievement reflects the university's strengthened commitment to the Sustainable Development Goals (SDGs), particularly in poverty alleviation, health, and marine and terrestrial conservation. Unhas also rose to the top 10 nationally, underscoring its growing global reputation and sustainable campus governance.

Apindo to Issue 12 Guidelines for Companies and Workers to Anticipate Layoffs

The Indonesian Employers' Association (Apindo) is finalising 12 guidelines to help companies and workers mitigate the risk of mass layoffs. The guidelines outline steps such as reducing working hours and implementing efficiency measures before termination is considered. Apindo also hopes the government will provide stimulus to struggling companies during crises.

IKN Ceremonial Plaza Proves Brantas Abipraya's World-Class Landscape Capability

Indonesia's state-owned construction firm PT Brantas Abipraya has won the Honour Award at the Malaysia Landscape Architecture Awards 2026 for its work on the Ceremonial Plaza in Nusantara Capital City (IKN). The award recognises the plaza's integration of national identity, environmental sustainability, and social function. The achievement underscores that Indonesian infrastructure projects can compete and gain appreciation on a global stage.

Banks Rush to Revise Business Plans and Loan Rates After BI Rate Hike

Indonesian banks are scrambling to revise their business plans (RBB) and adjust lending rates following an aggressive hike in the benchmark interest rate by Bank Indonesia. Lenders such as CIMB Niaga, Bank Sahabat Sampoerna, and BCA are recalibrating deposit targets and loan pricing to manage rising cost of funds and protect profitability. The adjustments aim to balance liquidity and asset quality, with a focus on sustainable growth rather than aggressive expansion.

BPKH Reveals Impact of Unimplemented Hajj Deposit Hike on Fund Management

The Hajj Financial Management Agency (BPKH) has disclosed that the delayed implementation of a policy to raise the initial Hajj deposit from Rp25 million to Rp35 million has prevented an additional Rp5.65 trillion from entering its managed funds this year. The agency also faces challenges from the T+1 withdrawal mechanism for pilgrimage travel costs, which saw Rp7.8 trillion transferred out in 2025.