Indonesian Political, Business & Finance News

Archive: 2 June 2026

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CEO of Hanania Travel Named Suspect in Umrah Fraud Case

The Director of PT Khazanah Tamma Internasional, Ahmad Syah Farhan, has been detained by Polda Metro Jaya following allegations of fraud and embezzlement involving Umrah pilgrimage funds. The investigation involves hundreds of victims, with total reported losses estimated to reach up to Rp 60 billion.

Rano Karno Warns of Potential Subsidence on Lenteng Agung Railway Tracks, Calls for Prevention

Rano Karno has highlighted the risk of ground subsidence near the Lenteng Agung railway tracks due to water drainage from the University of Indonesia (UI) reservoir. The Jakarta Provincial Government is currently mapping vulnerable areas and preparing technical contingency plans, such as drilling and jacking, to prevent future infrastructure damage.

Indonesian Ambassador to Japan visits Bukittinggi to strengthen tourism sector

The Indonesian Ambassador to Japan, Nurmala Kartini Pandjaitan Sjahrir, visited Bukittinggi, West Sumatra, to explore opportunities for enhancing Japan-Indonesia cooperation in tourism. The visit focused on developing promotional strategies to attract Japanese tourists by highlighting the city's historical significance and improving local amenities.

Prospective Pilgrims Fail to Perform Umrah, Police: Boss of Hanania Group Used Funds to Pay Influencers

The Chief Executive of PT Khazanah Tamma Internasional, known as the Hanania Group, has been named a suspect in an Umrah fund embezzlement case. Investigations reveal that a portion of the pilgrims' funds was diverted to pay social media influencers for marketing purposes.

Cabinet Secretary Teddy Praised for Remaining Efficient Despite Personal Attacks

The Executive Director of Indonesia Political Review, Iwan Setiawan, has commended Cabinet Secretary Teddy Indra Wijaya for his professional approach to managing state affairs. Setiawan noted that Teddy's ability to ignore personal social media attacks in favour of data-driven communication is vital for maintaining national stability.

Kompolnas holds Kompolnas Awards 2026 to recognise best-performing police units

The National Police Commission (Kompolnas) has launched the Kompolnas Awards 2026 to honour Indonesian National Police units that demonstrate excellence in public service. The evaluation process will focus on responsiveness to public complaints and will include field visits to ensure the accuracy of performance data.

Bill Gates' Daughter's Startup Receives Massive Funding Boost from Celebrities and Wealthy Heirs

Phia, an AI-driven shopping application founded by Phoebe Gates, has successfully raised US$35.5 million in its Series A funding round. The investment round attracted high-profile global investors, including Hollywood stars and heirs to major business empires, driving the company's valuation to US$185.5 million.

Minister of Religious Affairs hopes Pesparawi in Manokwari will boost local economic activity

The Indonesian Minister of Religious Affairs, Nasaruddin Umar, anticipates that the XIV National Church Choir Festival (Pesparawi) in Manokwari will significantly stimulate the local economy. The event is expected to drive growth in the services, trade, and tourism sectors by attracting thousands of participants from across the country.

BPDP Responds to Danantara Sumberdaya Indonesia Becoming Palm Oil Exporter, Assures Levies Remain Secure

The Palm Oil Fund Management Agency (BPDP) has confirmed that the appointment of PT Danantara Sumberdaya Indonesia (DSI) as a state-owned exporter will not impact the collection of palm oil export levies. The agency maintains that as long as export activities continue, revenue for the BPDP and the Ministry of Finance will remain stable.

DKI Jakarta Provincial Government Appreciates Performance of Officials Repairing Lenteng Agung Drainage

The Jakarta Provincial Government has commended the rapid repair of a collapsed drainage system in the Lenteng Agung area, completed within five days. The project involved replacing aged corrugated steel pipes with more durable box culverts to ensure long-term stability for this vital transit route.

BPS Data: Indonesian Outbound Travel Drops by 18.85 Per Cent

Statistics Indonesia (BPS) reports a significant decline in outbound travel by Indonesian citizens, with a monthly decrease of 18.85 per cent recorded in April 2026. Malaysia remains the primary destination for Indonesian travellers, followed by Singapore and Saudi Arabia.

Indonesia Enters the Top 3 for the Highest Startup Investments in Southeast Asia in 2025

Indonesia has secured its position as the third-largest destination for startup investment in Southeast Asia, with funding reaching US$355.7 million in 2025. The market is transitioning from a volume-driven model to a value-driven one, with significant capital flowing into sectors such as artificial intelligence, SaaS, and climate solutions.

Police Uncover Umrah Travel Fraud Case, Estimated Losses Reach Rp12.14 Billion

The Jakarta Metropolitan Police have detained the President Director of PT Khazanah Tamma Internasional in connection with an Umrah travel fraud and embezzlement scheme. The estimated financial losses from the scam currently stand at Rp12.14 billion, prompting the establishment of a complaint post for victims.

Mandatory Exports via DSI: Mining Issuers Highlight Operational Impacts

Major Indonesian mining and energy companies are expressing concerns regarding the new mandate requiring natural resource exports to be processed through PT Danantara Sumberdaya Indonesia (DSI). While some firms like Antam support the move for better downstreaming, others such as ABM Investama warn of potential inefficiencies, increased bureaucracy, and risks to profit margins.

High Entrance Fees for Independent Tracks in State Universities are Highly Regrettable

A member of Commission X of the Indonesian House of Representatives has criticised the high institutional development contribution fees in the independent admission tracks of state universities. The lawmaker called for greater transparency and the elimination of 'additional' independent tracks to ensure equitable access to higher education.

National Nutrition Agency temporarily suspends operation of three kitchens in Manokwari

The National Nutrition Agency (BGN) has suspended three nutrition service unit kitchens in Manokwari, West Papua, due to non-compliant wastewater treatment facilities. The agency is enforcing strict hygiene and sanitation standards to ensure the safety of the Free Nutritious Meal Programme.

Luxury goods pawn industry sees growth amidst market volatility

The luxury goods pawning sector is experiencing an upward trend due to global financial market volatility and an increased demand for liquidity among premium clients. Investors are increasingly using high-value assets as safe havens to maintain cash flow without liquidating appreciating assets.

Defence Factory Explosion Leaves 5 Dead

A fatal explosion and subsequent fire at a Hanwha Aerospace production facility in Daejeon, South Korea, has resulted in five deaths and two injuries. The incident occurred during the cleaning of equipment used in the manufacturing of propulsion systems, prompting a full investigation by South Korean authorities.

Former Bekasi Legislative Candidate Identified as Mastermind Behind Murder of South Korean National

Police in Bekasi Regency have named a former legislative candidate, SJ, as the mastermind behind the murder of a South Korean citizen. The suspect allegedly orchestrated the crime and recruited an accomplice to carry out the execution.

French and Dutch International Tourists Increase in North Sumatra in April 2026

The number of international visitors from France and the Netherlands to North Sumatra saw a significant rise in April 2026 compared to the previous month. This growth contributed to an overall increase in international arrivals to the region, alongside improved occupancy rates in star-rated hotels.

Indonesia and Qatar deepen defense ties with new strategic pact

The governments of Indonesia and Qatar have signed a statement of intent and a memorandum of understanding to enhance bilateral military cooperation. The agreement focuses on developing the defence industry and strengthening technical capabilities through joint exercises and personnel exchanges.

KPAI Condemns Sexual Abuse of 10 Students in Bima, NTB

The Indonesian Commission for Child Protection (KPAI) has issued a strong condemnation following the discovery of a sexual abuse case involving ten students at an Islamic boarding school in Bima, West Nusa Tenggara. The KPAI is calling for law enforcement to prosecute the suspects under child protection and sexual violence laws.

Rano Urges Water Resources Agency to Inspect Corroded Culverts Following Lenteng Agung Sinkhole

Jakarta Deputy Governor Rano Karno has called for an urgent inspection of steel culverts across the city following a sinkhole on Jalan Raya Lenteng Agung. The official identified corroded 'armco' pipes, some over 30 years old, as the primary cause of the road collapse and requested a comprehensive mapping of similar high-risk areas.

PLN Records Rp 7.26 Trillion Profit in 2025

PT PLN (Persero) reported a net profit of Rp 7.26 trillion for 2025, representing a 65.8% decrease from the previous year's profit of Rp 21.23 trillion. Despite an increase in total revenue, the company's performance was weighed down by rising operational costs and significant foreign exchange losses.

BPS: West Papua Records Highest Inflation Rate in May 2026

The Indonesian Central Statistics Agency (BPS) has reported that West Papua experienced the highest annual inflation rate in the country at 5.94 per cent in May 2026. Nationally, the annual inflation rate stood at 3.08 per cent, driven primarily by the food, beverage, and tobacco sectors.

Public Works Minister: Physical Progress of Regional Irrigation Handling Reaches 82.73 Per Cent

The Minister of Public Works, Dody Hanggodo, announced that the physical progress of regional irrigation projects has reached 82.73 per cent as of May this year. This initiative, part of a Presidential Instruction to support national food self-sufficiency, involves a budget of approximately Rp350 billion targeting 19,760 hectares.

UI Officially Imposes Tiered Sanctions on Perpetrators of Sexual Violence, Ranging from Suspension to Dismissal

Universitas Indonesia (UI) has issued formal sanctions against 15 individuals involved in cases of alleged Electronic-Based Sexual Violence (KSBE) within the Faculty of Law. The disciplinary measures include academic suspensions of varying lengths and administrative sanctions, following a thorough investigation by the university's task force.

Hanania Travel Boss Used Umrah Pilgrims' Funds to Pay Influencers

The Director of PT Khazanah Tamma Internasional, Ahmad Syah Farhan, has been named a suspect in an alleged fraud and embezzlement case involving Umrah pilgrimage funds. Investigations reveal that the diverted money was used for various purposes outside of pilgrimage logistics, including paying influencers for marketing promotions.

House of Representatives Urges Re-evaluation of Proposal to Include French in Indonesian Curriculum

The Deputy Chairman of Commission X of the House of Representatives (DPR) has called on the Ministry of Primary and Secondary Education to conduct a thorough study regarding the introduction of French into the national curriculum. While acknowledging the diplomatic benefits, the legislator emphasised the need to assess teacher availability and prioritise existing issues such as teacher welfare.

Public Works Budget Reaches Rp 33.49 Trillion in 2026, Here is the Breakdown

The Indonesian Ministry of Public Works has reported a budget realisation of Rp 33.49 trillion as of May 2026, representing approximately 31.39% of its total annual allocation. Minister Dody Hanggodo highlighted significant progress in strategic infrastructure projects, including schools and irrigation systems, noting that current absorption rates significantly outperform previous years.

CORE States Governance Determines Success of DSI

The Executive Director of CORE Indonesia, Mohammad Faisal, emphasises that the success of the Danantara Sumber Daya Indonesia (DSI) depends on robust institutional design and good governance. He warns that rushed implementation without adequate preparation could create loopholes that disadvantage private sector players and investors.

University of Indonesia Imposes Tiered Sanctions on Sexual Violence Perpetrators at Faculty of Law

The University of Indonesia (UI) has issued various disciplinary sanctions against 15 individuals found guilty of sexual violence within the Faculty of Law. The sanctions range from academic suspensions of up to three semesters to administrative penalties, following a thorough investigation by the university's task force.

Creative Economy Minister states Pancasila values can strengthen creative economy ecosystem

The Minister of Creative Economy, Teuku Riefky Harsya, has emphasised that the principles of Pancasila serve as a vital moral foundation for developing an inclusive and sustainable creative economy. He highlighted that the spirit of mutual cooperation and social justice is essential for driving national economic growth through local wisdom.

Major Fire in Kemayoran: Riano Highlights Importance of Mitigation

Following a massive fire in the Kebon Kosong area of Kemayoran, Jakarta, a member of the Jakarta Regional Legislative Council (DPRD) has called for urgent improvements to fire prevention systems. The incident left approximately 620 residents homeless, prompting calls for electrical audits and stricter building inspections in densely populated areas.

Killer of Unram Student at Nipah Beach, North Lombok, Faces 13-Year Prison Sentence

The public prosecutor has demanded a 13-year prison sentence for Radiet Adiansyah, who was convicted of murdering his girlfriend, a student at the University of Mataram. The defendant had initially attempted to frame the incident as a robbery, but investigations revealed he killed the victim during an attempted sexual assault.

AAJI: Sharia Life Insurance Premiums Reach Rp4.41 Trillion in Q1 2026

The Indonesian Life Insurance Association (AAJI) reported that sharia-compliant life insurance premiums reached Rp4.41 trillion in the first quarter of 2026, marking a 32.2 per cent year-on-year decline. Despite this drop, the association remains committed to supporting the growth of the sharia segment through the mandatory spin-off of sharia units by late 2026.

DPR Commission III States Police Law Revision Will Only Amend 8-9 Articles

The Chairman of Commission III of the Indonesian House of Representatives, Habiburokhman, has clarified that the proposed revision to the National Police Law will be limited to approximately 8 to 9 articles. The amendments primarily focus on adjusting retirement ages and aligning police assignments outside the institution with Constitutional Court rulings.

Indonesia aims to boost returns from Rp1.2 trillion jamu industry

The Head of BPOM, Taruna Ikrar, has highlighted the immense global potential of Indonesia's wellness industry, which could reach a value of US$20 billion through the optimal use of biodiversity. To realise this, the agency emphasises the need for enhanced downstream processing and more intensive scientific research to upgrade traditional jamu into standardised herbal medicines and phytopharmaceuticals.

Indonesia Swamped by Tourists from Australia, Malaysia, and China for Holidays

International tourist arrivals to Indonesia rose significantly in April 2026, driven by holidays in Australia and France. While foreign visits increased, domestic tourism experienced a sharp decline during the same period.

Waste Management Workers in Negari Village, Klungkung, Go on Strike Over Three-Month Unpaid Wages

Waste processing staff at the TPS3R facility in Negari Village, Bali, have ceased operations after failing to receive salaries since March 2026. The strike, caused by significant reductions in village funds, was temporarily resolved following the allocation of special financial assistance from the Klungkung Regency government.

Strengthening Branding as a Strategy to Expand Health Protection Services

PT Asuransi Jiwa Inhealth Indonesia (Inhealth) has undergone a rebranding process to solidify its position within the IFG Life holding ecosystem. The move aims to strengthen synergies within the Indonesia Financial Group (IFG) and enhance its integrated health insurance services for its 1.7 million users.

HPSL Ensures Consignment Process Will Not Disrupt Sitinjau Lauik Development

PT Hutama Panorama Sitinjau Lauik (HPSL) has confirmed that the ongoing land consignment process in court will not hinder the physical construction of the Sitinjau Lauik flyover in Padang. The company has deposited funds with the court to facilitate compensation for the 8.49-hectare site, allowing work to proceed on state-owned land.

Case Files Complete: Roy Suryo and Dr Tifa to Face Trial Over Jokowi Diploma Allegations

The Jakarta Metropolitan Police have announced that the case files regarding allegations of a fake diploma involving Indonesia's 7th President, Joko Widodo, have been declared complete by the Jakarta High Prosecutor's Office. This development brings Roy Suryo and Dr Tifa closer to trial as authorities prepare for the second stage of the legal process.

Prabowo Visits Palmerah Nutrition Service Unit to Oversee Free Nutritious Meal Processing

President Prabowo Subianto inspected the Free Nutritious Meal (MBG) production facility in Palmerah, Jakarta, to ensure operational standards and supply chain integrity. The visit included a review of greenhouse, hydroponic, and main kitchen facilities to guarantee the quality of food production funded by the state budget.

Rubber to Shallots Boost Farmers' Terms of Trade by 1.99 Per Cent in May 2026

Indonesia's Farmers' Terms of Trade (NTP) rose to 127.73 in May 2026, driven by strong price increases in commodities such as rubber, cocoa, and shallots. While the horticulture sub-sector saw significant gains, the fishermen's terms of trade experienced a slight decline.

Police involve KPAI and Bapas in South Jakarta murder case

The Metro Jaya Regional Police are collaborating with the Indonesian Child Protection Commission (KPAI) and the Correctional Centre (Bapas) following the murder of a woman in Kebayoran Baru. The investigation involves a suspect classified as a child in conflict with the law, necessitating specialised psychological assistance and legal protections.

France Bans Israel from Participating in Eurosatory Defence Exhibition

The French government has prohibited Israel from participating in the upcoming Eurosatory defence exhibition in Paris. The ban prevents the Israeli Ministry of Defence from hosting an official stand and prohibits the display of offensive weaponry.

Nadiem Expresses Regret Over Lack of Political Engagement Due to Inexperience

Former Minister of Education, Nadiem Makarim, has admitted to being an amateur in politics during his tenure from 2019 to 2024. He expressed regret for failing to engage sufficiently with senior political figures and for neglecting the importance of institutional relationships.

New Chapter in Case of Disrupted Church Worship in Bantul

The Yogyakarta Regional Police have officially upgraded the investigation into the disruption of a church service in Bantul to the investigation stage. Meanwhile, the Forum Jihad Islam (FJI) DIY is preparing to file a counter-report, alleging data manipulation by the church group.

Trump Claims Lebanon Conflict Easing, Pursuing Peace Deal with Iran

Donald Trump has expressed confidence in reaching a diplomatic agreement with Iran within the coming week to extend a ceasefire and reopen the Strait of Hormuz. Despite claims of productive discussions with Israeli Prime Minister Netanyahu and Hezbollah representatives, tensions remain high as military operations continue in southern Lebanon.