Indonesian Political, Business & Finance News

Archive: 25 June 2026

Showing 501-550 of 1,504 articles

Minister Bahlil pushes E20 bioethanol rollout to cut gasoline imports

Energy Minister Bahlil Lahadalia has urged the implementation of E20 bioethanol by 2028–2029 to slash Indonesia’s reliance on imported gasoline and ease pressure on the state budget. With domestic gasoline output at 20 million kilolitres against demand of 40 million, the minister argued that blending 20 percent bioethanol could cut import needs to 16 million kilolitres. The government is also pursuing increased crude oil lifting through technology, reactivating stalled development plans, and resuming exploration across roughly 120 potential wells.

North Kalimantan Government Bridges Local MSMEs into Global Industrial Supply Chain via SINERGI Kaltara

The North Kalimantan Provincial Government has launched the 'SINERGI Kaltara' initiative to integrate local micro, small, and medium enterprises (MSMEs) into the supply chain of the Tanah Kuning Industrial Area, a National Strategic Programme. The project aims to prevent an 'enclave economy' by connecting industrial demand with local business capacity through institutional strengthening, a digital B2B platform, and supportive regulations. Officials hope the scheme will ensure that large-scale downstream investments translate into inclusive and sustainable economic growth for the local community.

Machete Attack on Two Police Officers in Jambi Deemed a Serious Threat to the Rule of Law

A member of Indonesia's House of Representatives has condemned the machete attack on two traffic police officers in Jambi as a direct assault on state authority and the rule of law. The legislator called for the perpetrators to be prosecuted under the new Criminal Code to ensure a deterrent effect. The incident, which occurred while the officers were managing traffic, has sparked public outcry and demands for a thorough investigation.

Disaster Victims' Home Ownership Dreams Remain Under Threat Due to Budget Shortfall

The Indonesian Ministry of Housing and Settlement has warned that severe budget constraints may halt the construction of homes for disaster victims by 2027. With an indicative budget ceiling of only Rp37.1 billion, the government can build just 118 units, despite a total need for over 18,000 homes across regions like East Nusa Tenggara and Sumatra. The ministry estimates it requires approximately Rp5.2 trillion to address the housing backlog caused by recent natural disasters.

Indonesia to Adopt Sustainable Aviation Fuel from 2027, Says Minister AHY

Coordinating Minister Agus Harimurti Yudhoyono announced that Indonesia will begin using Sustainable Aviation Fuel (SAF) in its aviation sector starting in 2027. The initiative aims to reduce carbon emissions and transform air transport into a cleaner, more sustainable industry. The policy is part of broader government efforts to balance economic growth with environmental preservation.

Downstreaming cuts ICOR to 3, boosts investment efficiency: Airlangga

Coordinating Minister Airlangga Hartarto stated that Indonesia's mineral and coal downstreaming policy has improved investment efficiency, with the Incremental Capital Output Ratio (ICOR) in industrial zones and SEZs dropping to 3, well below the national average of 6. This industrial transformation is driving robust and decentralised economic growth, with regions like Sulawesi and Bali-Nusa Tenggara recording growth rates of 6.95% and 7.93% respectively. The minister affirmed that strong macroeconomic indicators, including 5.61% GDP growth and a 72-month trade surplus, demonstrate the economy's resilience amid global uncertainty.

Government Urged to Make Digital Sovereignty a National Strategic Agenda

A prominent Indonesian activist has called for the government to prioritise digital sovereignty as a national strategic agenda, warning against the country becoming merely a market for foreign platforms. He stressed that true independence in the digital age requires robust national infrastructure and protection of citizens' data. The appeal highlights the need for cross-sector collaboration to ensure digital transformation strengthens national resilience rather than creating new dependencies.

Video: Ministry of Energy, Pertamina, and Parliament Collaborate to Secure Fuel and LPG Supply

Indonesian energy officials and lawmakers have assured the public that subsidised and non-subsidised fuel supplies remain secure through the end of the year despite global geopolitical turmoil. The government is advancing energy resilience through initiatives such as the B50 biodiesel programme, set for July 2026, and diversification into new and renewable energy. The national energy resilience index has reportedly risen to 7.13, reflecting improvements in availability, accessibility, affordability, and acceptability.

NTB accelerates preservation of thousands of ancient manuscripts

The West Nusa Tenggara (NTB) provincial government is accelerating the digitisation of its ancient manuscript collections to protect cultural heritage and improve public access. With over 5,000 manuscripts estimated in the region, the initiative aims to digitally preserve these treasures and introduce them to a global audience, aligning with the province's development vision. The NTB Museum currently houses around 1,200 manuscripts, but only 200 have been digitised, prompting calls for better equipment and outreach to private owners.

Banks Unanimously Offer Special Rates, LPS Reveals the Cause

The Indonesia Deposit Insurance Corporation (LPS) has raised its guarantee interest rate for rupiah deposits, citing a broad upward trend in deposit rates across all bank groups. The increase is attributed to the impact of the benchmark interest rate, rising yields on domestic financial instruments, and heightened competition among banks. LPS data shows the proportion of deposits earning interest above the guaranteed rate rose to 33.82% in May 2026.

Ministry eyes Saudi tourists via Garuda empty-leg flights

Indonesia's Tourism Ministry is backing a plan to fill Garuda Indonesia return flights from Hajj pilgrimages with Saudi tourists, after Saudi Arabia permitted commercial passenger carriage on previously empty legs. The initiative aims to attract high-spending visitors, with over 1,700 seats already filled, and the ministry plans to intensify digital promotions and business matchmaking in Saudi Arabia. The effort aligns with President Prabowo's goal of maximising national assets to drive sustainable tourism growth.

United States promotes nuclear energy diplomacy in ASEAN

The United States is advancing nuclear energy cooperation in ASEAN through a visit by a public engagement expert to Indonesia. The initiative, part of the 'Freedom 250' campaign, promotes small modular reactors (SMRs) as a tool for energy security and job creation. The US emphasises the importance of public trust and transparent community engagement for the successful adoption of nuclear technology.

Denmark Revives Proposal to Ban Loudspeaker Call to Prayer

The Danish government is renewing efforts to ban the Muslim call to prayer, or azan, from being broadcast via loudspeakers in public spaces. Immigration Minister Morten Bodskov argues the practice has no place in Denmark's secular soundscape, framing the move as part of a broader tightening of integration and immigration policies. The proposal, which has failed twice before due to legal hurdles, is expected to face constitutional challenges and accusations of discrimination from Muslim organisations.

Minister Maman Pushes Financing and Subsidies to Elevate MSMEs

Indonesia's Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, has issued a new regulation requiring marketplaces to halve service fees for verified local MSMEs to create a fairer business climate. The policy aims to boost the competitiveness of local micro and small enterprises, which currently face e-commerce service fees averaging 18 to 21 percent. The government is also launching the SAPA UMKM application in collaboration with the National Development Planning Agency (Bappenas) to accurately map the country's 57 million MSMEs and ensure subsidies are precisely targeted.

Indonesian-Made Smartphones Quietly Sold Overseas, Few Know

Indonesia has quietly entered the global smartphone market through a partnership with Cyprus-based startup Unplugged, which manufactures its privacy-focused 'UP Phone' in the country. The device has already reached North American markets but production is set to relocate to the US due to political pressure and tariff threats from the Trump administration.

LNG Price Hike Must Be Viewed Objectively, Government Urged to Find Middle Ground for Industry

An economist has called for a proportional and objective view of the liquefied natural gas (LNG) price increases affecting some industrial customers, linking the rise to global geopolitical dynamics. The decline in piped gas supply has made LNG a necessary but more expensive alternative due to its complex supply chain. The government is urged to formulate a fair solution that safeguards industrial resilience without disrupting the national gas supply chain.

IAEA Claims Nuclear Inspections in Iran Will Proceed Soon

The International Atomic Energy Agency (IAEA) has announced it will soon conduct nuclear inspections in Iran, following the first round of peace negotiations between the United States and Iran. However, Iran's deputy foreign minister has stated that access to nuclear facilities has not yet been granted and remains contingent on a final agreement and tangible sanctions relief. The inspections are crucial for verifying the status of Iran's highly enriched uranium stockpile, which was partially targeted in previous military strikes.

Hajj Assistance in Madinah Strengthened, Focus on Elderly Pilgrims and Arbain Understanding

Indonesian Hajj officials are intensifying support for pilgrims in Madinah as the 2026 operational period nears its end, with a particular focus on elderly care and clarifying the requirements of the Arbain prayer. Visitation programmes are being used to map out issues within each flight group, ensuring better coordination for health needs and wheelchair access. Pilgrims are also being advised not to risk their health by forcing themselves to complete 40 consecutive obligatory prayers, with scholars offering a more flexible interpretation of the tradition.

Industry Ministry Strengthens Development of Palm Oil-Based Craft Industry

Indonesia's Ministry of Industry is bolstering the development of palm oil-based crafts to enhance the competitiveness of the national creative industry and support a sustainable circular economy. The sector's export value reached US$165.27 million in the first quarter of 2026, marking a 4.08 per cent increase from the previous year. The government is focusing on human resource capacity, product innovation, and market access to optimise domestic raw material utilisation.

Three SPPI Kopdes-KNMP Basic Military Training Participants Die, House Commission I Demands Evaluation of Training Standards

House of Representatives Commission I Deputy Chairman Dave Laksono has urged the Ministry of Defence to conduct a total evaluation of the basic military training scheme for the SPPI village cooperative and fishing village programme following the deaths of three participants. Laksono stated that the physical demands of the training must be recalculated and the curriculum redesigned to be adaptive to the fitness levels of civilian participants. He also defended the broader involvement of the Indonesian military in food security programmes, rejecting claims of a return to the New Order's dual function doctrine.

Lestari Moerdijat: Education Must Become the Main Perspective in National Development

MPR Deputy Speaker Lestari Moerdijat has called for education to be treated as a fundamental perspective in nation-building, rather than merely a technical or administrative matter. Speaking at a discussion forum on reviving the 'Tri Pusat Pendidikan' concept, she stressed the need to integrate family, school, and community roles to address a growing crisis of character and national identity. The forum's recommendations are intended to inform future national education policy, particularly in strengthening cultural values ahead of the Indonesia Emas 2045 vision.

Government Supports MSMEs to Penetrate Global Markets Through Tech and Tax Incentives

The Indonesian government is bolstering support for micro, small, and medium enterprises (MSMEs) to expand beyond the domestic market and compete globally. Initiatives include integrating a dedicated digital platform called SAPA UMKM for training and services, alongside new tax incentives under Government Regulation No. 20/2026. The policy offers a 0% final income tax rate for MSMEs with annual turnover below Rp 500 million, aiming to ease financial burdens and encourage growth.

Illegal Gold Mining Surges in Jambi, Further Polluting the Batanghari River

Unlicensed gold mining in Tebo Regency, Jambi, is severely threatening aquatic life in the Batanghari River. Researchers warn that the use of suction dredges is destroying fish habitats and causing a dramatic decline in water clarity and species diversity. Environmental groups are calling for integrated management and strict law enforcement to save one of Sumatra's longest rivers.

Russia awaits continuation of dialogue with US on Ukraine settlement

The Kremlin has expressed its anticipation for further talks with American negotiators regarding the resolution of the Ukraine conflict. Spokesman Dmitry Peskov noted Russia's appreciation for President Trump's efforts, suggesting progress may follow the conclusion of the Iran situation. Moscow believes the US team understands the difficulty of pursuing a settlement while engaged in warfare on one side.

Kortastipidkor Raids Two Cafes in Sidoarjo Over Illegal Mobile Phone Import Corruption

The Indonesian Police's Corruption Eradication Corps (Kortastipidkor) has raided two cafes in Sidoarjo, East Java, as part of an expanding investigation into corruption linked to illegal mobile phone imports. The searches are aimed at tracing the flow of funds from the illicit trade, with investigators seizing documents, bank records, and CCTV footage. The case has already seen four suspects named, including an importer and company directors.

Police Anti-Corruption Unit Raids Four Locations in Mobile Phone Import Corruption Case

Investigators from the Indonesian National Police's Corruption Eradication Corps (Kortas Tipikor) have raided four locations in Sidoarjo, East Java, as part of a probe into alleged corruption involving illegal mobile phone imports. The operation targeted a company office, a private residence, and two entertainment venues to trace illicit financial flows and assets suspected of being linked to money laundering. Authorities seized banking documents, company deeds, and CCTV footage as they deepen their investigation into the import scheme.

Kaesang to Accompany Jokowi on Lampung Visit Tomorrow

Kaesang Pangarep, chairman of the Indonesian Solidarity Party (PSI), will accompany his father, former President Joko Widodo, on a three-day visit to Lampung starting 26 June 2026. The trip marks Jokowi's first political safari since declaring himself healthy and includes party meetings, cultural events, and meetings with local figures. PSI officials confirmed a large contingent of party cadres will join the activities across several regencies.

Police Leadership School Forges Future Generals into Data-Driven Leaders

The Indonesian National Police's Staff and Leadership School (Sespimti) is training 57 senior officers to become data-driven, adaptive leaders. The programme includes digital leadership seminars, social empathy fieldwork, and a comparative study on smart policing in Shanghai. The initiative aims to produce future generals capable of maintaining domestic stability and supporting national food, energy, and economic sovereignty.

Youth Enthusiasm Marks Peak of 2026 Serangan Penjor Festival

Young representatives from traditional hamlets in Serangan Village, Bali, enthusiastically participated in the third Penjor Festival, held to celebrate the Puja Wali ceremony at Pura Dalem Sakenan and the Galungan and Kuningan holidays. The event was a collaboration between PT Bali Turtle Island Development (BTID), the developer of the Kura Kura Bali Special Economic Zone, and local youth groups, who were also involved as organisers for the first time. The initiative is part of BTID's community empowerment efforts, aiming to foster creativity and organisational skills among the younger generation.

93% of Binawan Graduates Immediately Employed, Ready for Global Careers

Binawan University reports that 93% of its graduates secured employment within six months, with alumni working in countries such as Austria, Japan, and Saudi Arabia. The university highlighted its commitment to industry-relevant education and strong international partnerships. The Secretary General of the Ministry of Manpower stressed the importance of workforce readiness in the face of technological and global economic changes.

Indonesia to phase out diesel imports this year following B50 mandate

Energy Minister Bahlil Lahadalia announced Indonesia will cease diesel imports this year as the country prepares to launch its B50 biodiesel mandate in July 2026. The policy, which blends 50 percent palm oil-based fuel with diesel, is expected to slash daily imports from 1 million barrels to 700,000 barrels while stabilising fresh fruit bunch prices for farmers. Technical trials for the B50 programme are underway across the automotive, agricultural, mining, railway, and power generation sectors.

Thailand intensifies crackdown on transnational fraud along borders

Thai authorities report a sharp decline in transnational fraud cases and financial losses following a crackdown on scam compounds along its borders with Cambodia, Myanmar, and Laos. The operations, which included cutting utilities and demolishing a major scam hub, have led to over 29,300 arrests, but officials stress that international cooperation is essential to fully dismantle the criminal networks. The United Nations estimates hundreds of thousands of people are involved in the Southeast Asian online fraud industry, which generates billions of dollars annually.

ESDM Minister demands transparency in PLN coal procurement

Energy and Mineral Resources Minister Bahlil Lahadalia has demanded a transparent audit of PLN's coal procurement after discovering the state utility nearly exhausted its annual supply within six months, leaving a critical shortfall. He expressed suspicion over the rapid depletion and the use of low-calorie coal, which forced the company to burn higher volumes to meet power generation needs. The government has temporarily restricted coal exports to stabilise domestic supply and has called for law enforcement to investigate the recurring annual shortages.

Minister Bahlil Addresses Power Outages and Coal Supply for Power Plants

Energy and Mineral Resources Minister Bahlil Lahadalia discussed Indonesia's energy security challenges, including recent power outages linked to coal supply issues. He outlined strategies to reduce reliance on imports, such as boosting domestic oil lifting and developing biodiesel. The government also aims to secure coal procurement to ensure stable electricity supply.

IHSG Closes Higher, Tracking Asian Markets Amid Global Oil Price Correction

The Indonesia Stock Exchange (IDX) composite index (IHSG) surged nearly 2 per cent on Thursday, buoyed by a broader rally across Asian markets. Sentiment was lifted by a correction in global crude oil prices, which eased inflation fears, alongside significant foreign capital inflows into domestic instruments. The rebound also reflected bargain-hunting after the index hit a two-week low.

Ojek Online Parking Arrangement: DPRD Asks Jakarta Government to Provide Special Waiting Areas

A Jakarta council member has urged the city administration to provide dedicated waiting areas for online motorcycle taxi drivers as part of a new parking arrangement plan. The policy aims to prevent ojeks from obstructing pavements and public spaces while ensuring drivers have proper facilities. The council supports a collaborative approach involving app companies, building managers, and shopping centres.

UIN Datokarama Provides Free Education Access for Palestinian People

Universitas Islam Negeri (UIN) Datokarama in Palu, Central Sulawesi, has announced a policy offering free undergraduate education to Palestinian citizens as a gesture of solidarity. The initiative, part of the university's Datokarama International Scholarship programme, aims to empower Palestinian youth through human resource development. The Palestinian Ambassador to Indonesia welcomed the programme, with an initial cohort of five students expected to enrol.

Bahlil: E20 Bioethanol Policy to be Implemented to Slash Petrol Imports

Energy and Mineral Resources Minister Bahlil Lahadalia has announced plans to implement an E20 bioethanol mandate by 2028-2029 to reduce Indonesia's reliance on imported petrol. With domestic petrol production meeting only half of the national demand of 40 million kilolitres, the government is also pursuing increased crude oil lifting, reactivating stalled development plans, and expanding exploration. The policy aims to conserve foreign exchange and strengthen national energy security.

National Internship Programme Batch 4 to Open in July, Check the Requirements

The Indonesian government will open registration for the fourth batch of the National Internship Programme (PMN) in July 2026, targeting 50,000 participants in the first wave. The programme, which has already placed over 100,000 graduates, offers six-month internships with benefits including a monthly allowance equivalent to the local minimum wage and social security. A total of 8,056 partners, including 874 state-owned enterprises, are participating, with the banking sector providing the most opportunities.

OKU Health Office urges residents to adopt clean living to prevent Singapore Flu

The Ogan Komering Ulu (OKU) District Health Office in South Sumatra has called on the public to implement Clean and Healthy Living Behaviour (PHBS) to curb the spread of Singapore Flu. The disease, which primarily affects children under five, has seen 19 suspected cases reported in the district between January and June 2026. Health officials emphasise that basic hygiene practices, including regular handwashing with soap, remain the most effective defence against the highly contagious viral infection.

Government targets 4 percent growth in Indonesia's game market valuation

Indonesia's Creative Economy Ministry is targeting a 4 percent year-on-year increase in the valuation generated by local game developers. The domestic game market is currently valued at around US$2 billion, yet the market share held by local developers remains minimal despite the country's large player base. A new partnership with payments firm Coda aims to bolster the domestic business ecosystem and facilitate monetisation for content providers targeting the Indonesian market.

Sadai Port Temporarily Closed, South Bangka Government Requests Ferry Services Be Redirected

The South Bangka Regency Government has announced the temporary closure of Sadai Ferry Port due to the unsafe condition of its movable bridge. Ferry operators are being asked to redirect services to Pangkalbalam Port or the nearby Sadai Public Port to maintain connectivity between Bangka and Belitung islands. The local government is coordinating with the Ministry of Transportation to expedite the rehabilitation process and ensure the safety of sea travel.

Jakarta Council Urges City to Map Congestion Hotspots Caused by Ride-Hailing Pickups

The Jakarta Regional Legislative Council (DPRD) has called on the city administration to map traffic congestion points caused by online motorcycle taxi (ojol) pick-up and drop-off activities before implementing widespread parking enforcement. Commission B Chairman Nova Harivan Paloh stressed that effective policy requires data on driver and passenger gathering locations, particularly near offices, shopping centres, and transit hubs. He also highlighted the need for designated pick-up and drop-off zones and collaboration with app operators and building managers.

AGO Extends Detention of Dadan Hindayana and Others by 40 Days in MBG Corruption Case

The Attorney General's Office has extended the detention of three former top officials of the National Nutrition Agency, including its ex-head Dadan Hindayana, for an additional 40 days. The extension is related to the ongoing investigation into alleged corruption in the procurement of goods and services for the Free Nutritious Meals programme. A total of six suspects have been named in the case so far.

100 Hajj Pilgrims Still Hospitalised, Medical Team Ensures Tanazul Process Unhindered

Over 130 Indonesian Hajj pilgrims remain under intensive care in Saudi Arabia, with medical teams providing strict supervision. The Hajj Health Centre has confirmed that 171 pilgrims have already been repatriated under the 'tanazul' early-return scheme, and procedures are in place to fly the remaining patients home as soon as they are declared fit to travel. Comprehensive medical escorts and airport handovers have been arranged to ensure the safety of returning pilgrims.

Indonesia Committed to Energy Transition Protecting Environment and Workers

Environment Minister Jumhur Hidayat affirmed Indonesia's commitment to a responsible energy transition that safeguards the environment and protects workers at the GETES 2026 forum in London. He stressed that development must adhere to strict environmental standards and align with national climate commitments. The minister also highlighted Indonesia's crucial role in global climate mitigation due to its vast tropical forests, peatlands, and mangroves.

LBH Jakarta Requests Komnas HAM as Amicus Curiae in MBG Lawsuit

The Jakarta Legal Aid Institute (LBH Jakarta) has requested the National Commission on Human Rights (Komnas HAM) to act as an amicus curiae in a judicial review challenging the allocation of education funds for the Free Nutritious Meals (MBG) project. The request follows Komnas HAM's own findings and recommendations regarding the programme's implementation. The lawsuit is one of several filed at the Constitutional Court contesting the reallocation of over Rp 223 trillion from the education budget to the National Nutrition Agency.

Minister Purbaya Vows to Intensify Surprise Inspections of Steel Companies in Indonesia

Finance Minister Purbaya Yudhi Sadewa has announced a stricter oversight regime for companies, particularly in the steel sector, to ensure tax compliance matches business scale. The government aims to create a level playing field and fair competition, rather than hinder business operations. This follows a surprise inspection of a Chinese-owned steel company in Jakarta, which is now under document verification for potential discrepancies between its reported activities and tax payments.

NATO Chief Reveals Support for US During War, Iran Furious

Iran has accused NATO of active involvement in the US-led war against it after Secretary General Mark Rutte detailed logistical support provided by member states. Rutte revealed that thousands of American aircraft operated from bases in Italy and Romania during the conflict, prompting a swift denial from Italy regarding the nature of the flights. Tehran condemned the alliance for what it called a clear violation of international law and the UN Charter.

At Gocap Price, Company Director Snaps Up 2 Million Shares of South Jakarta Property Firm

A director of PT Repower Asia Indonesia Tbk (REAL) has purchased 2 million shares at the gocap price of Rp 50 each, spending Rp 100 million. The insider buying is viewed as a signal of management's confidence in the property firm's long-term prospects, including its expansion into digital property and technology infrastructure. The transaction marks the director's first shareholding in the company, giving him a 0.03 per cent stake.