Indonesian Political, Business & Finance News

Archive: 25 June 2026

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Indonesia's Q2 2026 Economic Growth Forecast to Slow to 5 Percent

The Institute for Development of Economics and Finance (Indef) projects Indonesia's economic growth will decelerate to 5 percent in the second quarter of 2026, down from the previous quarter's temporary spike. High geopolitical uncertainty, supply chain disruptions, and rising energy prices are cited as key challenges, alongside a narrowing fiscal space due to increased government spending and energy subsidies.

Minister Bahlil Inaugurates Mini LNG Plant in Tuban, East Java

Energy and Mineral Resources Minister Bahlil Lahadalia has inaugurated a new Mini LNG Plant operated by PT Sumber Aneka Gas in Tuban, East Java. The facility, which began development in 2015, is set to commence LNG operations in 2026 and will process gas supplied from the local Pertamina Hulu Energi field. The plant is designed to produce multiple energy products including LNG, CNG, LPG, and condensate to support domestic energy needs and land-based transportation supply chains.

Indonesia Calls on World to Build Strong, Transparent, and Impactful Carbon Markets

Indonesia has urged global leaders to develop credible and transparent carbon markets to mobilise climate finance, with Forestry Minister Raja Juli Antoni outlining the nation's strategic reforms at London Climate Action Week 2026. The country is set to launch its national Carbon Unit Registry System (SRUK) on 9 July 2026 and will facilitate the issuance of over 30 million tonnes of CO₂e in forestry carbon credits. These measures aim to transform fragmented carbon markets into mature, investable platforms while ensuring benefits for local communities and indigenous peoples.

Natural Gas Roadmap Pushed as Reference to Accelerate Energy Sovereignty

The Indonesian Oil and Gas Pipeline Experts Association (IAPMIGAS) has launched a policy document aimed at accelerating the role of natural gas in supporting national energy security and transition. The roadmap outlines strategic recommendations to overcome infrastructure gaps, regulatory hurdles, and investment challenges. It calls for integrated pipeline networks, accelerated LPG substitution programmes, and harmonised policies to strengthen Indonesia's energy sovereignty.

Ahead of MPLS, Ministry of Social Affairs Finalises Preparations for Sekolah Rakyat Nationwide

The Ministry of Social Affairs is finalising preparations for the Sekolah Rakyat programme ahead of the new academic year, with the student orientation period (MPLS) set to begin simultaneously on 14 July 2026. Minister Saifullah Yusuf has instructed all units to ensure basic needs are met, while construction of permanent school buildings is underway at 93 locations, with Medan, Surabaya, and Gresik showing the most progress. The government is also coordinating with the Ministry of Defence to deploy cadets for character-building activities and is preparing transparent student selection mechanisms to prioritise children from the most vulnerable families.

674 Prospective Managers of 'Red and White Village Cooperatives' Undergo Military-Style Basic Training

A total of 674 candidates for the Koperasi Desa Merah Putih (Red and White Village Cooperative) manager positions are participating in a military-style basic training programme in Jakarta. The initiative, part of the Sarjana Penggerak Pembangunan Indonesia (SPPI) scheme, aims to instil character traits such as integrity, loyalty, discipline, and empathy deemed essential for their future roles. The training is being conducted at the Marine Infantry Brigade 1 facility in Cilandak.

Coordinating Minister for Food: Gorontalo's 210-tonne maize harvest supports food self-sufficiency

Coordinating Minister for Food Zulkifli Hasan has highlighted a 210-tonne maize harvest in Gorontalo as a significant step towards national food self-sufficiency. The harvest, with yields exceeding six tonnes per hectare and farm-gate prices above the government reference price, demonstrates improved productivity and farmer welfare. The government aims to expand the planting area to over 1,000 hectares by July 2026 to further boost national maize production.

House Commission VII Stresses Transparency for Contract-Manufactured Bottled Water Products

The Indonesian House of Representatives Commission VII has called for greater transparency in the marketing of bottled drinking water (AMDK) produced under contract manufacturing or 'maklon' schemes. The move aims to clarify accountability between producers and brand owners in the event of product issues. The commission is gathering input from industry players to formulate recommendations that will strengthen consumer protection in the sector.

Fake Soldier in East Lombok Arrested for Assaulting Girlfriend

A 22-year-old man in East Lombok has been arrested after allegedly assaulting his girlfriend out of jealousy. The suspect had been posing as a member of the Indonesian military. Police seized military-style clothing and equipment from his boarding house.

E-commerce Platforms Must Notify 90 Days Before Raising Seller Commission Fees

Indonesia's Ministry of Micro, Small and Medium Enterprises has issued a new regulation requiring e-commerce platforms to provide 90 days' notice before altering commission fees for sellers. The rule also allows small businesses to object to fee changes and request government-facilitated negotiations. Additionally, platforms must offer a minimum 50% service fee discount to verified MSMEs selling exclusively domestic products.

AGO Extends Detention of Dadan and Others for 40 Days

The Attorney General's Office has extended the detention of former National Nutrition Agency head Dadan Hindayana and two deputies for an additional 40 days. The extension is to allow investigators more time to gather evidence in the alleged corruption case involving the free nutritious meal programme. The case involves the procurement of goods, including electric motorcycles and tablets, with marked-up prices.

Hajj Ministry pushes for transparent pilgrim fund management through Hajj Finance Law revision

The Ministry of Hajj and Umrah is advocating for more transparent and accountable management of hajj funds through the revision of Law Number 34 of 2014. Deputy Minister Dahnil Anzar Simanjuntak stated the regulatory strengthening aligns with the President's directive to ensure all pilgrim funds are fully accounted for and used solely for hajj purposes. The ministry is prioritising optimising the existing Rp25 million initial deposit to generate higher value benefits rather than increasing the upfront cost for pilgrims.

BPKP: Supervisory contributions in 2025 reach Rp56.59 trillion

Indonesia's Development Finance Comptroller (BPKP) reported that its supervisory activities contributed Rp56.59 trillion to the state in 2025 through spending efficiency, financial recoveries, and revenue optimisation. The agency conducted over 11,000 assurance activities and provided consulting assistance to various government bodies. The House of Representatives' Commission XI praised BPKP's performance and urged it to strengthen preventive, risk-based oversight to ensure effective governance.

Police Arrest Man for Illegally Trading Air Guns Online, Earning Over IDR 200 Million

Police in North Jakarta have arrested a man, identified as MF alias B, for illegally buying and reselling air guns online since 2023. The suspect reportedly sold the weapons for between IDR 2.5 million and IDR 4 million each, amassing an estimated profit of over IDR 200 million. Authorities are continuing to investigate his supply chain and have seized 15 air guns along with ammunition and other related equipment.

UN Report Says 655 Million People Worldwide Live Without Electricity Access

A new United Nations report reveals that 655 million people, predominantly in Sub-Saharan Africa, still lack access to electricity. The report warns that the current pace of electrification must triple to achieve universal access by 2030. It also highlights that 1.8 billion people use polluting fuels for cooking, posing significant health risks.

Trump Rejects Transit Fees in Potential Deal with Iran

US President Donald Trump has stated that any final agreement with Iran that includes fees on shipping or maritime transit would be unacceptable. He argued that permitting such charges could set a precedent for similar demands elsewhere. The remarks come amid ongoing 60-day negotiations between Washington and Tehran aimed at addressing Iran's nuclear programme and international sanctions.

PWI Jaya and Bank Jakarta Launch Financial Literacy Category for 2026 Journalism Award

The Jakarta branch of the Indonesian Journalists Association (PWI Jaya) and Bank Jakarta have introduced a special financial literacy category for the 2026 M.H. Thamrin Journalism Award. The initiative aims to encourage high-quality reporting that enhances public understanding of the bank's role in regional economic development. The competition will feature categories for feature news, opinion articles, and photo features, with substantial cash prizes for winners.

House Commission I Urges Evaluation of Military Training After Three SPPI Participants Die

Indonesia's House of Representatives Commission I has called for an evaluation of basic military training following the deaths of three participants in the Sarjana Penggerak Pembangunan Indonesia (SPPI) programme. The fatalities, attributed to heat stroke and cardiac arrest, occurred during separate training sessions in Balikpapan, Baturaja, and Jakarta. The Ministry of Defence confirmed that all participants had passed health assessments prior to training, but an evaluation is deemed necessary to ensure the programme's safety and effectiveness.

Semarang Man Arrested by Police for Throwing Cat Off Bridge

A 44-year-old man in Semarang has been arrested after a video of him throwing an orange cat off the Banjir Kanal Timur bridge went viral. The suspect claimed he was frustrated because the cat had defecated on his bed and no one in his neighbourhood claimed ownership. Police are investigating the incident for potential criminal elements.

Jakreadies Grand Launch of 5th Centenary Logo at Bundaran HI on 27 June

The Jakarta Provincial Government is set to unveil the official logo for the city's upcoming 500th anniversary during the 499th anniversary celebrations this weekend. The event at the Hotel Indonesia Roundabout will feature video mapping, a flying LED show, and performances by top musicians. The festivities mark a significant step in building the identity for Jakarta's five-century milestone.

KAI Commuter Launches Rp 1 Ticket Promotion for School Holidays

KAI Commuter is offering a special Rp 1 ticket promotion for the Tanjung Priok line during the school holiday period from 22 to 28 June 2026. The promotion applies to journeys between Jakarta International Stadium (JIS) Station and several key stations, including Tanjung Priok and Jakarta Kota. The operator is also anticipating a significant surge in overall passenger numbers across the Greater Jakarta commuter network during the holiday season.

JCI Closes Second Session Up 1.96% at 5,999

The Jakarta Composite Index rebounded sharply on Thursday, closing 1.96% higher at 5,999.04 after a significant slump in the previous session. The rally was broad-based, led by technology and consumer sectors, though trading value remained relatively thin. Market sentiment was buoyed by MSCI's decision to retain Indonesia's Emerging Market status, easing fears of major foreign capital outflows.

The Decline of the Israel Lobby in America Draws Near

Recent primary victories by candidates critical of Israel's actions in Gaza signal a significant shift within the US Democratic Party, particularly in New York City. The defeats of establishment figures, some of whom were backed by pro-Israel lobby groups like AIPAC, suggest that opposing Israeli policy is no longer a political liability and may even be an electoral advantage. This trend could have national implications as the party prepares for future elections.

Tangerang Mother Accused of Selling 12-Year-Old Daughter into Marriage

A mother in Tangerang Regency faces up to 15 years in prison for allegedly selling her 12-year-old daughter into an unregistered marriage with a 46-year-old male relative. Police uncovered the case after the girl's father reported losing contact and discovered she had been married off, with investigators finding evidence the child was sexually assaulted prior to the wedding. The mother and the man have been charged under Indonesia's sexual violence and child protection laws.

Vietnam proposes fuel tax incentive extension until September

Vietnam's Ministry of Finance has proposed extending tax breaks on petroleum products and aviation fuel until 30 September to stabilise domestic energy prices. The measures include maintaining zero per cent preferential import tariffs and environmental protection tax, alongside a continued VAT exemption. The ministry cited ongoing Middle East tensions and global market uncertainty as risks that could fuel domestic inflation if taxes were reinstated prematurely.

Deputy Culture Minister Giring Ganesha: Government Learning from Digital Platforms to Support Modern Music Ecosystem

Deputy Culture Minister Giring Ganesha has acknowledged a complete transformation in Indonesia's music industry compared to his own era as a musician, with the government now studying digital streaming platforms to formulate effective support. Indonesian music has achieved 6.3 billion global discoveries, reaching listeners in countries such as Zimbabwe, Congo, France, and the United States. The ministry aims to design regulations based on concrete data to ensure equitable access and development opportunities for local musicians nationwide.

Forestry Ministry and Central Java Deploy 500 Personnel Ahead of 2026 Dry Season Peak

The Ministry of Forestry and the Central Java provincial government have readied over 500 joint personnel to prevent forest and land fires during the peak of the 2026 dry season. A preparedness drill was held in Boyolali involving military, police, and community firefighting groups, with the Meteorology, Climatology and Geophysics Agency (BMKG) forecasting the peak drought from July to September. Officials stressed that early detection and rapid response are critical, citing the nearly 10,000 hectares burned in the region during the 2023 El Niño event.

Jakarta Provincial Government and Bank Jakarta Honoured at Cita Loka Fest 2026

The Jakarta Provincial Government and Bank Jakarta have received awards at the Cita Loka Fest 2026 for their contributions to sustainable development and digital economic empowerment. Governor Pramono Anung accepted the 'Best Regional Governance' award for the Jakarta Smart City initiative, emphasising the importance of listening to citizens. Bank Jakarta was recognised for its role in driving MSME digitalisation, having channelled Rp10.46 trillion in loans to the sector by the first quarter of 2026.

Pushing the Acceleration of Natural Gas as the Backbone of the Energy Transition

The Indonesian Oil and Gas Pipeline Association (IAPMIGAS) has launched a policy brief outlining a roadmap to accelerate the role of natural gas in the nation's energy transition. The document calls for urgent infrastructure integration, regulatory harmonisation, and investment certainty to position gas as a sustainable and competitive bridge fuel. The initiative aims to bolster national energy sovereignty while reducing emissions and dependency on LPG imports.

Production Decline Blamed for Rising Industrial Gas Prices

Indonesia's Energy Minister attributes the increase in the industrial gas price (HGBT) to declining domestic production, forcing reliance on more expensive LNG. The government is holding technical meetings with Pertamina to find an ideal pricing formula to prevent industry layoffs, as parliament warns of potential job losses affecting over 50,000 workers.

Man Arrested for Sexually Abusing Boy in Bogor Using Mobile Phone Loan Ruse

Police in Bogor, West Java, have arrested and named a 34-year-old man as a suspect in the sexual abuse of a 13-year-old boy. The suspect allegedly lured the victim by offering to lend him a mobile phone before committing the assault. The crime came to light after the suspect reportedly sent a recording of the abuse to the victim's parents.

Farmer Corporations Penetrate Export Markets and Strengthen Local Food Security

Indonesia's UPLAND programme, funded by IsDB and IFAD, has successfully transformed subsistence farmers into 40 independent corporate entities, with several now exporting commodities such as coffee, pepper, and mangosteen. The initiative, which concludes its funding phase in 2026, has boosted trade volumes and integrated farmers into modern retail and fast-food supply chains. The Ministry of Agriculture is now focusing on managerial support and banking integration to ensure the sustainability of these farmer corporations.

Two Indonesian Crew Members Missing After Collision Off Busan Coast

Two Indonesian fishermen are missing after their vessel collided with an LPG carrier off the coast of Busan, South Korea. The incident, which occurred on Thursday, threw eight crew members into the sea, with six rescued and two Indonesian nationals still unaccounted for. South Korean President Lee Jae Myung has ordered the deployment of all available resources for the search and rescue operation.

Hajj Ministry to Reduce Ceremonial Welcomes, Tighten Health Requirements for Pilgrims

The Ministry of Hajj and Umrah has instructed regional officials to minimise lengthy ceremonies for returning pilgrims to allow them to rest immediately. The ministry also plans to enforce stricter health requirements for future departures, including a new 'Manasik Kesehatan' programme starting in 2027 to physically prepare pilgrims, following a year where fatalities decreased to around 350 from 467.

Kepri Police Arrest Five in Batam Online Gambling Network

The Kepulauan Riau Regional Police have arrested five Indonesian nationals for allegedly operating an online gambling network in Batam. The suspects, who held roles including leader, operator, marketer, and financial manager, were apprehended in a housing complex. Authorities seized cash, gold, cryptocurrency, and digital accounts as evidence, with the suspects facing up to nine years in prison under the new Criminal Code and the ITE Law.

New Zealand Goat Milk Sales 'Explode' in Indonesia for Second Consecutive Year

Demand for New Zealand goat milk in Indonesia has doubled for the second year running, making it one of the fastest-growing imported food products in the country. New Zealand's Ambassador to Indonesia highlighted the surge, noting that bilateral trade between the two nations is balanced at approximately NZ$4 billion annually. The growth is being driven by the 'New Zealand Made with Care' campaign, which promotes premium food products to Indonesian consumers.

IPSI says long-term national training camp will strengthen pencak silat ecosystem

The Indonesian Pencak Silat Association (PB IPSI) has welcomed government-backed long-term national training camps, stating they will provide certainty for athlete development and strengthen the sport's ecosystem from grassroots to national level. Chairman Sugiono said the multi-year funding commitment, confirmed by the Youth and Sports Minister following a directive from President Prabowo Subianto, demonstrates the state's seriousness in building a structured and sustainable coaching system. He expressed optimism that this synergy will further internationalise pencak silat and gain it wider global recognition as both a competitive sport and a cultural heritage.

Former Ombudsman Chairman Denies Receiving Rp4.85 Billion in Bribes

Hery Susanto, the former chairman of the Indonesian Ombudsman for the 2026 period, has denied allegations of accepting bribes totalling Rp4.85 billion in cash and property. The charges relate to the alleged manipulation of an Ombudsman investigation report concerning nickel mining governance. Susanto claims that the indictment is procedurally flawed and intends to challenge the substance of the corruption charges in court.

Jatiluhur Irrigation Water Supply Assured Amidst Dry Season

State-owned water management company Perum Jasa Tirta II has guaranteed the supply of irrigation water from the Jatiluhur system to support the second planting season of 2026. The assurance comes as the Meteorology, Climatology, and Geophysics Agency (BMKG) forecasts the peak of the dry season for August 2026. The company reported that water distribution in May exceeded planned allocations, with planting progress reaching nearly 30 per cent of the target area.

Coordinating Minister AHY pushes for stronger governance of national airport ecosystem

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has called for improved governance of Indonesia's airport ecosystem to boost connectivity and accelerate regional economic growth. He highlighted the strategic role of airports in supporting tourism and the creative economy. A ministerial coordination meeting was held to establish a comprehensive legal foundation and enhance cross-sector collaboration.

Party Chairperson Term Limits Challenged Again in Constitutional Court Amid Oligarchy Concerns

Six students have petitioned Indonesia's Constitutional Court to impose a two-term limit on political party chairpersons, arguing the current lack of restrictions fosters oligarchy and stifles internal democracy. The petitioners contend that because parties receive state funding and perform public functions, their leadership succession should not be left solely to internal rules. The court has asked the students to strengthen their legal standing and differentiate their case from previously rejected challenges.

Global Oil Prices Fall as Hormuz Strait Traffic Resumes

Global oil prices declined on Thursday, erasing gains made during the Middle East conflict, as supply concerns eased following the reopening of the Strait of Hormuz. More than 20 tankers carrying 35 million barrels of crude have transited the strategic waterway after a US-Iran agreement, with deliveries to Asia expected by early August. However, Iran's Revolutionary Guard warned that shipping must adhere to Tehran's designated routes, indicating that normalisation of energy flows remains fragile.

Peradi SAI: Legal Certainty Supports Economic Growth

The Indonesian Advocates Association (Peradi SAI) has highlighted the positive direction of legal and economic policy, emphasising that legal certainty is crucial for business growth. The discussion took place at the Indonesia Legal Economic Forum (ILEF) 2026, which focused on the implementation of the new National Criminal Code (KUHP), particularly regarding corporate criminal liability. The forum brought together law enforcement officials, business actors, and advocates to discuss the implications of the code six months after its enactment.

Beloyot: From a Narrow Cave to the Future of Berau Tourism

The ancient Beloyot Cave in Berau, East Kalimantan, home to prehistoric hand stencils and symbols up to 40,000 years old, is being positioned as a cornerstone of the region's economic transformation. The local government is shifting its development focus away from finite mining resources towards sustainable tourism and environmental services. A strategic action plan for the Sangkulirang-Mangkalihat Geopark for 2026–2032 has been initiated to leverage this cultural and natural heritage.

Political Party Law Challenged in Constitutional Court, Petitioners Seek Two-Term Limit for Party Chairpersons

A group of advocates and a student have filed a judicial review with the Constitutional Court, challenging the Political Party Law for allowing unlimited terms for party chairpersons. The petitioners argue that the absence of term limits fosters oligarchy and stifles leadership regeneration within political parties. They are requesting the court to mandate a maximum of two terms for chairpersons to strengthen internal party democracy.

Video: Combating Illegal Imports, MSMEs Minister Reveals How to Protect Local Enterprises

Minister of MSMEs Maman Abdurrahman has outlined a dual strategy of tax incentives and stricter import controls to shield local businesses. The government has introduced a new regulation offering a 0% final income tax rate for micro and small enterprises with annual turnover below IDR 500 million. Authorities are also collaborating to crack down on illegal imports, particularly from China, while boosting the quality and global market access of Indonesian MSMEs through technology and training programmes.

Indonesia Reaffirms Commitment to Just Energy Transition at GETES 2026

Indonesia has reiterated its commitment to a just energy transition at the Global Electrification and Transition Energy Summit (GETES) 2026 in London. The government stressed that the shift from fossil fuels must include environmental protection, ecosystem preservation, and safeguards for affected workers and communities. The approach aligns with UN calls for an inclusive transition that creates jobs and improves welfare alongside reducing emissions.

Airlangga: Downstreaming makes investment more efficient, ICOR drops to 3

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that Indonesia's mineral and coal downstreaming programme has significantly improved investment efficiency, with the Incremental Capital Output Ratio (ICOR) in industrial zones falling to 3, half the national average. The downstreaming strategy, integrated within industrial estates and special economic zones, is driving economic growth and spreading prosperity more evenly across the archipelago. Indonesia's economy grew by 5.61 per cent year-on-year in the first quarter of 2026, supported by strong government consumption, household demand, and sustained investment activity.

Al-Qassam Reveals Identity of Fighter Whose Quip to Military Analyst Went Viral

The military wing of Hamas has released a documentary revealing the identity of Ibrahim Muhammad Al-Balbisi, the fighter behind the viral wartime phrase 'Hallil ya Duwairi'. The video showcases his involvement in operations against Israeli forces in central Gaza, including a tunnel-based rocket attack. The release forms part of a series documenting the lives of fallen fighters from the Al-Aqsa Storm battle.

WHO Says Global Ebola Risk Remains Low Despite Rising Cases in Africa

The World Health Organization has assessed the global risk from the ongoing Ebola outbreak in Africa as low, even as confirmed cases surpass 1,000 in the Democratic Republic of the Congo. Significant challenges persist, including inadequate contact tracing, insecure operating conditions, and insufficient funding. A clinical trial for two Ebola therapies is expected to begin next week, while France has reported a case involving a returning health worker.