Indonesian Political, Business & Finance News

Archive: 25 June 2026

Showing 1,251-1,300 of 1,504 articles

Ringgit Leads Asia Against Dollar, Won and Rupiah Weaken

Asian currencies showed mixed performance against a strong US dollar on Thursday, with the Malaysian ringgit leading gains while the Philippine peso and South Korean won suffered the steepest losses. The Indonesian rupiah also edged lower, trading in negative territory. The dollar's resilience is being underpinned by hawkish signals from the Federal Reserve and expectations of a potential interest rate hike as early as October.

Industry Ministry, Danareksa team up on industrial estate growth

Indonesia's Industry Ministry is partnering with state-owned PT Danareksa to accelerate the development of industrial estates as key drivers of national industrialisation and investment. The collaboration aims to consolidate state-owned properties, develop green industrial zones, and establish new manufacturing corridors outside Java to promote more equitable economic growth. Despite challenges such as land-use constraints and infrastructure gaps, the government views these hubs as essential for creating jobs and anchoring capital inflows across the archipelago.

Man in Bogor Arrested for Allegedly Molesting Teenage Boy

Police in Bogor, West Java, have detained a man suspected of sexually abusing a 12-year-old boy. The suspect allegedly lured the victim to his business premises with the promise of borrowing a mobile phone. The case came to light after the suspect sent video recordings of the abuse to the victim, which were discovered by the child's parents.

Two Massive Earthquakes Rock Venezuela, Indonesian Citizens Safe

Two powerful earthquakes, measuring 7.2 and 7.5 in magnitude, struck Venezuela, causing buildings to collapse and prompting a massive emergency response. The Indonesian Embassy in Caracas confirmed that its office and the ambassador's residence sustained no significant structural damage, and all staff are safe. Authorities have warned of widespread disaster, with the USGS estimating a 44 per cent chance the death toll could exceed 10,000.

Water shortages hit Gaza amid limited aid funding

The UN Office for the Coordination of Humanitarian Affairs (OCHA) has warned that a shortfall in aid funding is forcing a phased halt to water trucking in Gaza, putting over 330,000 people at risk of losing their main source of drinking water. UNICEF cautioned that families are being compelled to choose between drinking water and maintaining hygiene to prevent disease. With less than 15 per cent of the required $4.1 billion annual appeal for Gaza and the West Bank secured, the humanitarian situation is deteriorating sharply.

Nursiah, the Figure Behind the Decline of Extreme Poverty in Tastura

Central Lombok's Deputy Regent HM Nursiah has been instrumental in driving down extreme poverty in the region to 0.72 per cent through data-driven policies and cross-sector collaboration. Her approach moves beyond temporary aid, focusing on targeted budget allocations, partnerships with the private sector and universities, and innovative programmes linking poverty reduction to stunting prevention. The administration is now aiming for zero per cent extreme poverty by 2029.

China's Ambassador Says High-Speed Rail Debt Negotiations with Indonesia Running Smoothly

China's Ambassador to Indonesia, Wang Lutong, has stated that debt negotiations concerning the Jakarta-Bandung high-speed railway are progressing well, though he declined to disclose specific details. The ambassador clarified that the funding was not a direct government-to-government loan, but rather a loan from the Chinese government to the China Development Bank, which then lent the money to the project. Finance Minister Purbaya Sadewa separately confirmed that the cost overrun restructuring for the Whoosh project has been completed and is awaiting an official announcement.

Iran Rejects IAEA Inspections Before Final Deal with US

Iran has stated it will not permit International Atomic Energy Agency (IAEA) inspections until a final agreement is reached with the United States. Deputy Foreign Minister Kazem Gharibabadi said access to nuclear facilities would only be resolved within the framework of a final deal and reciprocal sanctions relief. The statement follows recent US-Iran talks in Switzerland and comes after three major Iranian nuclear sites were bombed by the US during a conflict in June 2025.

DPR Member Demands Chemical Castration for Bandung Captor Taufik Hidayat

A member of Indonesia's House of Representatives has called for the maximum penalty of chemical castration for a man who held his girlfriend captive and tortured her for three years in Bandung. The lawmaker argued the punishment is warranted due to the perpetrator's alleged history of repeated violence, including against his former wife. Police are also investigating reports of other potential victims and have urged anyone with information to come forward.

Over 500 Personnel on Standby to Prevent Forest Fires in Central Java Ahead of Peak Dry Season

The Ministry of Forestry and the Central Java provincial government have readied more than 500 joint personnel to anticipate forest and land fires during the peak of the 2026 dry season. A preparedness drill was held in Boyolali, involving military, police, and community fire-awareness groups. The Meteorology, Climatology, and Geophysics Agency (BMKG) predicts the peak dry season will run from July to September, with authorities emphasising early detection and rapid response to prevent a repeat of the extensive fires seen during the 2023 El Niño.

Sari Yuliati Oversees Acceleration of Irrigation Infrastructure in Lombok, P3TGAI Programme for 2026 Surges by 610 Percent

Deputy Speaker of the Indonesian House of Representatives, Sari Yuliati, has reaffirmed her commitment to advancing agricultural infrastructure in Lombok, marked by a dramatic 610 percent increase in the P3TGAI irrigation programme for 2026. The programme, which involves local water user farmer associations, aims to bolster food security and rural economies through community-managed construction. Sari Yuliati also highlighted significant increases in other local development programmes, including a nearly 600 percent rise in the provision of decent housing units.

Meth Dealer in Klungkung Arrested, Police Seize 8 Packets Weighing 3.42 Grams

Police in Klungkung, Bali, have arrested a 35-year-old man suspected of distributing methamphetamine. Officers seized eight packets of the drug with a total net weight of 3.42 grams following a tip-off from the public. The suspect, a private sector employee, is now in custody as investigations continue to uncover his network.

Gerindra Confident Alleged Rp20 Million Payment to UBK Students Did Not Involve Gibran

The Gerindra Party has expressed confidence that Vice President Gibran Rakabuming Raka was not involved in an alleged payment of Rp20 million to a student representative from Bung Karno University. The party dismissed the claim as a unilateral statement from the student body and stated that no clarification from the Vice President is necessary. The controversy arose after a student coordinator admitted to receiving the money following a dialogue with Gibran at the Vice Presidential Palace.

Jakarta High Prosecutor Names Three New Suspects in Public Works Ministry Corruption Case

The Jakarta High Prosecutor's Office has named three additional suspects in a corruption case involving bribery and fictitious projects at the Ministry of Public Works. One suspect, a former acting director, is accused of extorting over Rp2 billion from state-owned construction firms and private parties. The other two suspects are alleged to have engineered fictitious projects causing state losses exceeding Rp16 billion.

IHSG likely to be volatile amid domestic sentiment and global interest rates

The Indonesia Stock Exchange (IDX) Composite Index (IHSG) is expected to experience volatile trading on Thursday, influenced by a mix of domestic developments and global interest rate sentiment. Market participants are also eyeing key US economic data and geopolitical developments in the Middle East. Domestically, the IDX is preparing for a major demutualisation and the Ministry of Finance has begun withdrawing excess budget funds from state banks.

Fiqh Muamalah Ethics in COD Transactions: Buyers Cannot Cancel Arbitrarily on the Spot

The rising trend of buyers refusing Cash on Delivery (COD) parcels upon arrival highlights a gap in Islamic commercial literacy. From a fiqh muamalah perspective, clicking 'Buy with COD' constitutes a binding promise (wa'ad) that must be honoured. Arbitrary cancellations not only breach this commitment but also violate the principle of 'no harm', causing financial losses to sellers and wasting the effort of couriers.

When This Indonesian President Scolded and Shouted at His Economic Ministers in His Private Home

A historical account reveals how former Indonesian President Soeharto once summoned his entire economic cabinet to his private residence and furiously reprimanded them over delays in funding the strategic Asahan Project. The outburst occurred in 1976 after the project's chairman, A.R. Soehoed, repeatedly failed to secure the necessary budget from the ministers. Following the dressing-down, the funds were swiftly released, allowing the massive hydroelectric and aluminium smelting project to proceed.

CATL Launches World's First Sodium-Based BESS, Pushing Commercialisation of Sodium Energy Storage

CATL has officially launched the TENER Sodium battery energy storage system in Munich, the world's first sodium-ion solution tested under real operational conditions. The company expects to ship 1 GWh of the product by the end of 2026, with global deliveries starting in mid-2027. The new system leverages abundant sodium resources to offer a safer, more cost-effective alternative to lithium-based storage, addressing supply chain risks and supporting the growing demand for renewable energy integration.

Former Public Works Official Named Corruption Suspect, Allegedly Received Rp 2 Billion in Bribes

The Jakarta High Prosecutor's Office has named three new suspects in a widening corruption investigation involving projects at the Ministry of Public Works. A former acting director is accused of extorting and accepting over Rp 2 billion in bribes from state-owned construction firms and private entities. The case also involves alleged fictitious projects at the Directorate General of Human Settlements, causing state losses of at least Rp 16 billion.

Trade Minister Vows to Maintain Staple Food Supply and Prices During Purwokerto Market Inspection

Trade Minister Budi Santoso has pledged the government's commitment to maintaining the supply and price stability of staple goods following an inspection at Purwokerto's Manis Market. He noted that prices for key commodities like shallots, garlic, and chillies are currently well-controlled and below retail price ceilings. The government is also coordinating with the hospitality and retail sectors to boost absorption of poultry products, where prices remain low, to protect farmers.

Pekanbaru's Zero School Dropout Programme: Mayor Agung Vows No Child Left Behind

The Pekanbaru city government has expanded its free education programme to cover private schools, ensuring no child drops out due to financial constraints. Mayor Agung Nugroho confirmed the city will fully fund students at 23 partner private junior high schools and 15 Islamic junior high schools. The initiative aims to guarantee educational rights and address the limited capacity of state schools.

Sokawera Village Head Encourages Fathers to Be More Involved in Childcare

Mukhayat, the head of Sokawera Village in Banyumas, Central Java, is championing a cultural shift by urging fathers to share equally in childcare responsibilities, a principle he practices in his own family. His advocacy, supported by the Tanoto Foundation's early childhood programme, has contributed to a notable reduction in the village's stunting prevalence from 21 to 17 percent. The village's success, recently recognised by the district government, underscores the impact of integrating paternal involvement into public health and family welfare initiatives.

Investor Hearts Calm Slightly, Here's Why the IHSG Rose 1%

The Jakarta Composite Index (IHSG) rebounded by over 1% in early trading on Thursday, recovering from the previous day's sharp 3.56% decline, with all sectors trading in positive territory. The rally was driven by large-cap stocks and was supported by MSCI's decision to retain Indonesia's Emerging Market status, which eased fears of massive foreign capital outflows. However, gains remain constrained by a weakening rupiah and caution ahead of US inflation data that could reinforce expectations of prolonged high interest rates.

Buka Luwur Sunan Kudus Tradition: 34,000 Rice Packets Distributed

The annual Buka Luwur tradition at the Menara and Sunan Kudus Tomb complex in Central Java culminated with the distribution of over 34,000 packets of rice. The event, held on 10 Muharam, commemorates the teachings of Sunan Kudus and is funded entirely through community donations, including livestock. Organisers chose a specific dried beef dish to ensure the rice remained edible during widespread distribution.

Warning: Banks and Securities Firms Face Rp15 Billion Fine Over Influencers

Indonesia's Financial Services Authority (OJK) has issued a new regulation holding financial service providers responsible for information disseminated by financial influencers. Under POJK No. 6/2026, banks and securities firms that violate the rules face administrative sanctions, including fines of up to Rp15 billion. The regulation aims to ensure that financial information shared with the public is clear, accurate, and not misleading, thereby strengthening consumer protection.

Bandung Captivity Case Deemed a Form of Adult Grooming

A health ministry official has described the three-year confinement and abuse of a woman in Bandung as a case of adult grooming, highlighting a systematic pattern of control. The perpetrator allegedly isolated the victim from her family and friends, instilling guilt and dependency to prevent her from escaping. The case has prompted calls from lawmakers for severe punishment and a comprehensive state-led recovery programme for the victim.

Sahroni Outraged After Jambi Police Officers Attacked by Unknown Assailant While on Duty: The State Must Not Lose to Criminals!

Ahmad Sahroni, Deputy Chairman of Commission III of the Indonesian House of Representatives, has expressed outrage following a brutal attack on two traffic police officers in Jambi by a man under the influence of narcotics. The assailant, who slashed one officer with a sharp weapon, was arrested within 12 hours. Sahroni demanded severe punishment for the perpetrator, asserting that the state must never be defeated by criminal elements to ensure public safety.

BKPM Reveals Investment and Downstreaming Achievements Towards 8% Economic Growth

Indonesia's Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, has outlined the nation's progress in meeting investment targets aimed at achieving 8% economic growth. The Investment Coordinating Board (BKPM) noted that investment contributed 29% to national economic growth in 2026. However, challenges remain, including a high Incremental Capital Output Ratio (ICOR) score of 6.3-6.5, indicating lower efficiency compared to regional peers like Vietnam.

Transjakarta's Tebet Eco Park Bus Stop Damaged After Being Hit by Truck

The Tebet Eco Park Transjakarta bus stop in South Jakarta sustained significant damage after a truck crashed into it in the early hours of Thursday morning. The collision caused a ceiling to collapse and shattered glass panels, though no casualties were reported. Repairs are underway and the bus stop remains operational for passengers.

Witnessing Jasa Raharja's CLA Signing, Manpower Minister Entrusts Three Strategic Agendas

Indonesia's Manpower Minister Yassierli witnessed the signing of PT Jasa Raharja's 2026 Collective Labour Agreement, urging the state-owned insurer to move beyond harmonious relations towards a transformative partnership. He entrusted the company with three strategic agendas: enhancing public service, accelerating digital transformation, and strengthening its preventive role in national transport safety culture. The agreement, signed with the Jasa Raharja Workers Union, is framed as an instrument for corporate transformation and improved public protection.

bank bjb Partners with Whuush Ojol, KADIN West Java, and MUJ to Accelerate West Java's Economy

bank bjb has signed three Memoranda of Understanding with Whuush Ojol, KADIN West Java, and PT Migas Utama Jabar to strengthen the regional economic ecosystem. The collaborations aim to provide integrated financial solutions, ranging from digital payment systems for ride-hailing drivers to business development support and energy sector financing. These partnerships underscore the bank's role as a catalyst for inclusive and sustainable economic growth in West Java.

Why Economic Growth Alone Is Not Enough to Bring Prosperity to the People

This article argues that economic growth, measured by rising production, is distinct from genuine economic development, which encompasses quality of life, education, and healthcare. It warns that average income figures can mask severe inequality, making equitable distribution a greater challenge than simply increasing national income. The piece advocates for a development paradigm focused on basic needs, national self-reliance, and environmental sustainability, balancing material progress with moral responsibility.

House Commission II Confirms Regional Transfer Funds to Drop by IDR 300 Trillion in 2027, Proposes State Budget Cover PPPK Salaries

The Indonesian House of Representatives' Commission II has confirmed that the regional transfer budget (TKD) will be reduced by IDR 300 trillion to IDR 600 trillion by 2027. To prevent the efficiency measures from disrupting public services, the commission has proposed that the salaries of Government Employees with Work Agreements (PPPK) be funded directly from the state budget (APBN). The commission also urged that no PPPK workers be laid off due to the resulting regional budget constraints.

Transforming a Duck Shed into a Reading Room: The Story of a SATU Indonesia Award Winner

Jamaluddin Daeng Abu founded a community reading room in a disused duck shed in Gowa, South Sulawesi, to combat illiteracy among local farmers. His initiative, Rumah Koran, evolved into a gateway for educational agro-tourism, highlighting the village's high-quality vegetable commodities. His perseverance after an initial rejection led to recognition through the Astra SATU Indonesia Awards in 2017.

Digital Debt Normalisation: A Challenge for Islamic Economics in the Fintech Era

The ease of digital financial services is normalising debt among Indonesia's Generation Z, often for lifestyle rather than necessity. This trend poses a significant challenge to Islamic economic principles, which permit debt only when it is prudent and free from usury. Experts argue that strengthening sharia financial literacy is crucial to ensure young people use fintech wisely and avoid harmful dependency.

Climate Change Triggers Vaname Shrimp Disease, Mineral Fertilisation Seen as Solution

Extreme weather and prolonged high temperatures are increasingly threatening Indonesia's aquaculture sector, with unstable environmental conditions fuelling disease outbreaks and harvest failures in vaname shrimp farms. A professor from IPB University has proposed complete macro and micro mineral fertilisation as a remedy, citing field trials that boosted shrimp survival rates by up to 42 per cent. The expert also urged the government to adopt mineral fertilisation standards to enhance sustainable productivity and support national food self-sufficiency.

BKPM LKPM Clinic to Open July 2026, Assisting Businesses with Timely Reporting

The Investment and Downstreaming Ministry/BKPM will hold an LKPM Clinic from 1-15 July 2026 to help business actors, particularly micro and small enterprises, correctly submit their mandatory Investment Activity Reports. The programme offers direct consultation and assistance to improve compliance and address common reporting difficulties. Failure to submit the periodic LKPM can affect a business's compliance status and future licensing processes within the OSS system.

OJK Chief Reveals 40% of Bank Customer Services Now Handled by AI

Indonesia's Financial Services Authority (OJK) has highlighted the rapid adoption of artificial intelligence in the banking sector, with a survey showing adoption rates climbing from 30% in 2024 to 57.9% in early 2026. AI solutions, including generative AI and advanced chatbots, now handle up to 40% of customer service interactions, significantly reducing operational costs and improving response times. The regulator noted that AI is becoming integral to digital transformation, enhancing efficiency, employee productivity, and the overall customer experience.

China to further expand market access for foreign companies

Chinese Premier Li Qiang has pledged to continue broadening market access for foreign investors despite global instability. Speaking at the Summer Davos forum, he emphasised China's commitment to national treatment for foreign firms and a top-tier business environment. Li highlighted China's strategic integration with the world, citing zero-tariff policies for 63 countries and its long-standing position as the world's second-largest importer.

JCI Opens Lower as Indonesia's Competitiveness Slide Weighs on Sentiment

The Jakarta Composite Index opened lower on Thursday, slipping 0.17% as investors reacted to Indonesia's eight-place drop in the IMD World Competitiveness Ranking. The government has pledged a comprehensive evaluation, including a debottlenecking task force, to address obstacles affecting the investment climate. Analysts warned that failure to improve competitiveness could constrain stronger economic growth.

Garlic and Beef Prices Rise as Egg Prices Fall: Full List

Bank Indonesia's National Strategic Food Price Information Centre reported a mixed picture for staple food prices on Thursday. Garlic and quality I beef saw modest increases, whilst red chilli and chicken egg prices declined. The data provides a snapshot of market conditions for key commodities across the country.

Trade Minister: Government Continues to Safeguard Staple Food Prices

Trade Minister Budi Santoso has affirmed the government's commitment to maintaining the supply and price stability of staple goods. During a market visit in Banyumas, he noted that prices for key commodities like chillies, chicken, and eggs are currently under control. The government is also investigating a cooking oil product and addressing a rise in beef prices.

After Successful De-Dollarisation with China, BI Targets India and South Korea

Bank Indonesia is expanding its local currency settlement (LCT) framework following a surge in transactions with China, which reached US$22 billion in the first five months of 2026. Senior Deputy Governor Destry Damayanti revealed that India is in advanced talks to join the scheme, while South Korea, the UAE, and Saudi Arabia are also in the pipeline. The initiative aims to reduce reliance on the US dollar for bilateral trade and investment.

Mangrove Women Balikpapan Empower Coastal Women Through Mangrove-Based Products

A community group in Balikpapan, East Kalimantan, is empowering coastal women by developing food and beverage products from mangrove plants. Mangrove Women Balikpapan, formed in 2026, now has around 20 active members and distributes its goods across the province. The initiative combines economic independence for women with weekly mangrove planting and conservation efforts, ensuring the ecosystem, including the habitat of the endemic proboscis monkey, is protected.

Board of Peace to Hold Meeting in Cyprus at End of June

The Board of Peace (BoP) is scheduled to convene in Cyprus on 30 June to recalibrate its Gaza peace strategy following reported delays. The meeting, expected to last two to three days, will include the National Committee for the Administration of Gaza and High Representative Nickolay Mladenov. The gathering comes amid reports of funding shortfalls and operational slowdowns attributed to US military actions against Iran.

Jokowi Mania Questions Prosecutors' Decision Not to Detain Roy Suryo and Dr Tifa

The pro-Jokowi group Jokowi Mania has questioned the South Jakarta District Prosecutor's Office's decision to release Roy Suryo and Dr Tifa after they were named suspects for allegedly spreading false information about the president's diploma. The group's chairman described the release as an 'anomaly' given that the pair had initially been detained by police. Prosecutors granted a suspension of detention after receiving guarantees from the suspects' families.

Observer Says Paid Demonstrations Can Damage Democracy

A political communication expert warns that paid protests undermine democracy by serving the interests of shadowy backers rather than genuine public aspirations. He has urged President Prabowo Subianto to take firm action against the organisers of such demonstrations, arguing that manipulated public opinion can distort government policy.

No Indonesians harmed in Venezuela earthquake, embassy continues monitoring

The Indonesian Foreign Ministry has confirmed that all three Indonesian citizens registered in Venezuela are safe following a 7.1-magnitude earthquake. The Indonesian Embassy in Caracas is maintaining emergency communication lines and coordinating with local authorities. The Indonesian government has also extended condolences to Venezuela and urged its citizens to remain vigilant.

Investment Ministry Reveals Investment and Downstreaming Achievements Towards 8% Economic Growth

The Deputy Minister of Investment and Downstreaming has detailed the government's progress in attracting investment and advancing downstream industries to meet the ambitious target of 8% economic growth. The Investment Coordinating Board (BKPM) noted that investment contributed 29% to national economic growth in 2026, prompting a continued push for improved licensing and downstreaming across various sectors. Challenges remain, however, including Indonesia's high Incremental Capital Output Ratio (ICOR), which indicates lower efficiency compared to regional peers like Vietnam.

West Java DPRD Continues Deliberation on Two Priority Regional Regulations

The West Java Regional People's Representative Council (DPRD) has advanced discussions on two key draft regulations concerning environmental protection and education management. During a plenary session, factions provided their general views and recommendations on the proposed bylaws. The process will continue with a response from the Governor before finalisation.