Indonesian Political, Business & Finance News

Archive: 30 June 2026

Showing 551-600 of 1,554 articles

AirAsia halts direct flights between Singapore and Jakarta

Indonesia AirAsia has permanently ceased its direct flights between Singapore and Jakarta after 17 years, rerouting passengers via Kuala Lumpur as part of a network optimisation strategy. The airline has also suspended its direct Singapore-Bali service, with the group citing a reallocation of capacity to stronger-performing routes. Affected customers are being offered alternative travel options through the group's Fly-Thru connectivity.

Bekasi Regency Government Accepts BPK Disclaimer Opinion as Momentum for Total Correction

The Bekasi Regency Government has accepted a Disclaimer opinion from the Supreme Audit Agency (BPK) on its financial report, viewing it as a catalyst for comprehensive reform. The adverse opinion is linked to an ongoing corruption case involving project brokering, with the local government pledging full cooperation with legal proceedings. Acting Regent Asep Surya Atmaja outlined a three-step strategy focusing on legal transparency, a thorough evaluation of procurement processes, and intensive coordination with the BPK to restore financial governance.

Drought Spreads Across Several Regions, Thousands Face Clean Water Crisis

Prolonged dry weather is triggering a clean water crisis in several Indonesian regions, including Banyumas and Cilacap in Central Java. Local disaster mitigation agencies (BPBD) have begun distributing tens of thousands of litres of water to affected families as wells and springs run dry. Authorities are conducting rapid assessments and coordinating with village officials to anticipate the further spread of the drought.

Malaysia Extends Ocean Infinity Contract for Year-Long MH370 Search

The Malaysian government has extended its contract with exploration firm Ocean Infinity for another year to continue the search for missing flight MH370. The renewed effort aims to complete scanning of the remaining 7,428 square kilometres of the search area in the southern Indian Ocean. The 'no find, no fee' arrangement means Ocean Infinity will only receive the US$70 million payment if it locates the wreckage.

USU Researcher: Leuser Ecosystem Must Be Part of Regional Development Agenda

A researcher from the University of North Sumatra has called for the protection of the Leuser Ecosystem to be integrated into regional development planning. Onrizal emphasised the area's strategic role in water supply, disaster mitigation, and supporting local economies across North Sumatra and Aceh. The recommendation was made during a policy workshop aimed at embedding conservation into the province's mid-term development plan.

Israeli Rabbi Urges Military to Remain in Lebanon, Claims Entire Territory Belongs to Israel

An Israeli rabbi has called for the military to maintain its presence in Lebanon and reject withdrawal plans, asserting that the entire country is part of Israel's ancestral heritage. The remarks were made during a parliamentary committee meeting as Israel debates a US-mediated ceasefire agreement. The ongoing conflict has resulted in thousands of casualties and displaced over a million people, according to Lebanon's health ministry.

KY Discusses Oversight and Implementation of Sexual Violence Crime Law in Judicial System

The Judicial Commission (KY) has convened a cross-sector forum to address the uneven implementation of the Sexual Violence Crime Law (UU TPKS) across Indonesia's judicial system. Despite progress in regulation and victim support, challenges remain, including stigma and a lack of integrated services. The forum aims to strengthen inter-agency coordination and ensure a victim-centred approach in handling sexual violence cases.

Alleged Involvement of Civil Servant in Failed Pesparawi Contingent Departure Deemed Personal Matter

The Secretariat of the Riau Islands DPRD has stated that the alleged involvement of a civil servant, identified as H, in the failed departure of a choir contingent to a national competition is a personal matter and unrelated to the institution. The official reportedly cooperated with a third party on ticket arrangements without the knowledge of the organising committee. No sanctions have been imposed as there is no official report or legal process underway.

PDIP Suspends Veronika Lake Over Alleged Intimidation of Doctor Icha

The Indonesian Democratic Party of Struggle (PDIP) has suspended one of its local legislators, Veronika Lake, following allegations she intimidated a doctor who later died in a suspected suicide. The party's central board confirmed the suspension will remain in place while police investigate the incident. The case has sparked public concern over the treatment of medical professionals in East Nusa Tenggara.

Ex-Sumber Waras International Hospital Groundbreaking Set for August 2026

The Jakarta provincial government plans to commence construction of an international-standard hospital on the former Sumber Waras site in West Jakarta in August 2026. Governor Pramono Anung confirmed that all legal issues surrounding the land purchase have been resolved, ending a 14-year impasse. The project had previously been investigated by the BPK and KPK over an inflated tax valuation before the corruption case was dropped in 2023.

Political Parties Respond to Jokowi's Regional Safari Tour

Former Indonesian President Joko Widodo has embarked on a political tour, starting in Lampung, prompting reactions from several major political parties. While PDIP, PKB, and Golkar have publicly stated that the tour is Jokowi's personal right, they have also emphasised the importance of maintaining political stability. Jokowi claims the tour is to appreciate PSI's progress in building party structures down to the village level.

Indonesia Utilises US$3.4 Billion in JETP Funds for Green Projects, Here's the List

Indonesia has realised US$3.4 billion from a total commitment of US$21.4 billion under the Just Energy Partnership (JETP) to finance renewable energy projects. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted projects including geothermal in West Sumatra and waste-to-energy in West Java. The government aims to accelerate energy transformation, with an additional US$5.5 billion in funding currently under negotiation.

Venezuela Earthquake Death Toll Surpasses 1,700 as Devastation Spreads

The twin earthquakes that struck Venezuela last week have killed over 1,700 people and likely damaged or destroyed nearly 59,000 buildings, according to preliminary NASA satellite analysis. International rescue efforts continue despite fading hopes of finding survivors, while the United Nations estimates 7 million people will be affected and economic losses could reach $6.7 billion. The disaster has also become entangled in political tensions, with exiled opposition leader Maria Corina Machado accusing the government of blocking her return.

PwC: Indonesia's telecommunications industry enters strategic transformation phase

PwC Indonesia reports that the nation's telecommunications sector has entered a phase of strategic transformation, underpinned by strong consumption fundamentals. Total service revenue is projected to reach $17-18 billion by 2025, with mobile services contributing nearly 60 per cent. The consultancy highlights that future growth hinges on expanding into digital ecosystems, including cloud, cybersecurity, and AI, while strengthening domestic technological capabilities.

Lemhannas Governor Awards Honorary Alumni Status to Army Chief of Staff Maruli

The Governor of the National Resilience Institute (Lemhannas), Tubagus Ace Hasan Syadzily, has conferred an Honorary Alumni award upon Army Chief of Staff General Maruli Simanjuntak. The award recognises General Maruli's contributions to national resilience, including programmes in energy, economy, and ideology. The ceremony took place at the Lemhannas building in Central Jakarta.

Pusdikkes Provides Special Assistance for SPPI Participants Vulnerable to Illness

The Indonesian Army's Health Education Centre (Pusdikkes) is providing special medical supervision for 12 participants of the Sarjana Penggerak Pembangunan Indonesia (SPPI) programme who have pre-existing conditions, as well as two pregnant participants. The initiative aims to ensure all trainees can safely complete the approximately six-week programme. Those identified as vulnerable are excused from outdoor physical activities and will receive dedicated health monitoring.

No Budget for New Flats, DKI DPRD Prioritises Revitalisation

The Jakarta Regional House of Representatives (DPRD) has confirmed that no funds have been allocated in the regional budget for the construction of new flats, with the current fiscal focus remaining on revitalising existing housing stock. Commission D Chair Yuke Yurike cited fiscal constraints as the reason for prioritising repairs to make current units habitable again. The council is exploring alternative funding schemes outside the budget, including leveraging regional assets and central government programmes, to address the urgent need for vertical housing in the capital.

US-Iran Negotiations in Doha Remain Shrouded in Uncertainty

The United States and Iran have dispatched delegations to Doha, Qatar, for potential peace talks, but conflicting claims over whether direct negotiations will occur are clouding the process. Disagreements persist over the implementation of a ceasefire, particularly regarding shipping security in the Strait of Hormuz and the withdrawal of Israeli forces from Lebanon. The path to a permanent peace deal remains fraught with challenges despite a reduction in direct hostilities.

2027 Investment Target of 7%: Danantara Cannot Yet Be the Booster

CORE Indonesia believes the lower bound of the 2027 investment growth target of 6.5% is realistic, but achieving the upper bound of 7% will require a significant acceleration in the pace of investment. The economist noted that the newly formed Danantara investment body is unlikely to boost gross fixed capital formation until late 2026 or 2027, as many of its projects are still in early stages. The effectiveness of investment, measured by the Incremental Capital Output Ratio (ICOR), remains a key challenge alongside the need to attract private sector participation.

Banyumas Police Name Former Bank Employee Suspect in Document Forgery Case

Police in Banyumas, Central Java, have named a former Bank Mandiri Taspen employee as a suspect in a document forgery case used to defraud customers. The suspect, identified as N alias D, allegedly exploited obsolete banking forms to carry out the scheme, which he admitted to conducting alone since 2021. Authorities are also investigating related money laundering and fraudulent investment allegations involving over 100 victims and estimated losses of Rp25 billion.

Impact of Rising Imported Soybean Prices on Tempeh and Tofu MSMEs

The recent surge in imported soybean prices is severely squeezing Indonesia's tempeh and tofu micro, small, and medium enterprises (MSMEs), which rely on imports for over 90 percent of their raw materials. A business lecturer from IPB University warns that the rupiah's depreciation is inflating production costs faster than artisans can adjust selling prices, forcing many to reduce product sizes to survive. Experts are urging the government to provide short-term price stabilisation and long-term incentives to boost domestic soybean production and ensure food security.

Indonesian court sentences Nadiem Makarim to 10 years in graft case

Former Indonesian education minister and Gojek founder Nadiem Makarim has been sentenced to a decade in prison for his role in a corruption scandal involving the procurement of Chromebooks for schools. The Central Jakarta Anti-Corruption Court found him guilty of causing state losses of Rp1.56 trillion and ordered him to pay Rp809.59 billion in restitution. The sentence, while substantial, is considerably lighter than the 18-year term prosecutors had demanded.

Indonesia and Belarus to Launch Cooperation Roadmap During Lukashenko Visit

Indonesia and Belarus are set to launch a bilateral cooperation roadmap for 2026-2030 during Belarusian President Alexandr Lukashenko's state visit on 2 July 2026. The framework aims to strengthen ties in areas including the economy, agriculture, food security, culture, and science and technology. The visit follows the signing of a free trade agreement between Indonesia and the Eurasian Economic Union in December 2025.

Social Affairs Minister: Proposal for Bill on LGBT Violations Deserves Follow-Up

Social Affairs Minister Saifullah Yusuf has stated that a proposal by the Indonesian Ulema Council (MUI) to draft a bill criminalising LGBT violations warrants further discussion and follow-up. The minister emphasised the need for comprehensive dialogue that aligns various perspectives, including religious teachings. The MUI is currently finalising an academic paper and draft bill, arguing that existing moral approaches have been ineffective.

Indonesia Financial Centre to Become New Special Economic Zone in Bali

The Indonesian government is accelerating the establishment of the Indonesia Financial Centre (IFC) in Bali, which will be designated as a standalone Special Economic Zone (KEK). Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the legal framework is currently being discussed with parliament and will include competitive tax incentives, potentially as low as 0%, to attract global investment akin to Dubai and Singapore.

Zelensky Mocks Russia's Fuel Crisis Caused by War

Ukrainian President Volodymyr Zelensky has derided Russia for experiencing fuel shortages as a direct consequence of its ongoing war against Kyiv. He accused President Vladimir Putin of ignoring the plight of ordinary Russians forced to queue at petrol stations. Zelensky also mocked the Kremlin's repeated failures to meet self-imposed deadlines to capture the Donbas region over the past four years.

Rocky Gerung Explains Why He Defends Free Nutritious Meals Programme, Refuses to Equate Criticism of Jokowi with Current Government

Academic Rocky Gerung has addressed accusations of bias, explaining why his criticism of President Prabowo Subianto's administration differs from his attacks on former President Joko Widodo. Gerung argued that he does criticise Prabowo, citing the waste of funds on the Nusantara Capital City (IKN) and the Whoosh high-speed rail project, but noted these were originally initiated by the Jokowi administration. He questioned the public's ability to filter issues, stating it is impossible to criticise Prabowo in the same manner as Jokowi.

CSIS: Green Logistics Key to Indonesia's Economic Competitiveness

The Centre for Strategic and International Studies (CSIS) Indonesia has identified green logistics as a crucial factor in boosting the nation's economic competitiveness and supporting sustainable trade. The think tank's latest report argues that decarbonising the logistics sector is essential to avoid negating emission reduction efforts in production. The report also highlights geopolitical tensions and international regulations like the EU's CBAM and EUDR as key drivers for this transformation.

Through CEO Talks at Andalas University, Pegadaian Director Invites Young Generation to "Buy the Future at Today's Price"

PT Pegadaian's Director of Risk Management, Legal, and Compliance, Ismail Ilyas, urged students at Andalas University to adopt sound financial planning early. He introduced the principle of 'Buy the Future at Today's Price' to encourage long-term investment and financial literacy. The event highlighted the state-owned pawnbroker's role in digital financial innovation and community empowerment.

The Rise of Arif Budiman: 1999 Police Academy Alumnus 'Breaks a Star' to Become General

Brigadier General Arif Budiman has been promoted to a high-ranking officer in the Indonesian National Police, marking a significant career milestone. His rise is attributed to a track record of innovation and major case disclosures during his tenures as police chief in Jepara and Cirebon. His leadership has been recognised with numerous awards for anti-corruption efforts, public service innovation, and financial accountability.

Pegadaian Sends Employees for Master's Studies Abroad

State-owned pawnbroker PT Pegadaian has dispatched seven of its best employees to pursue master's degrees at leading global universities. The initiative is part of the company's Global Education & Mastery Scholarship programme, aimed at developing future leaders. The scholarship recipients will study at institutions including Imperial College London and the University of Melbourne, with the goal of bringing international best practices back to Indonesia.

Padang Panjang Commemorates Century Since Devastating Earthquake with Zikir and Disaster Mitigation Call

The city of Padang Panjang held a joint zikir and prayer event to mark the 100th anniversary of the 1926 earthquake, aiming to strengthen spiritual values and collective awareness of disaster preparedness. Officials emphasised that the commemoration serves as a reminder to build a sustainable culture of disaster mitigation, blending faith with physical readiness. The event, held at the Manarul 'Ilmi Islamic Centre, sought to transform the historical tragedy into a lesson for future generations.

Indonesia eyes global markets for transmigration products

Indonesia's Transmigration Ministry is actively seeking to boost exports of agricultural, fishery, and horticultural products from transmigration areas through strategic partnerships. Deputy Minister Viva Yoga Mauladi highlighted the export potential of commodities like blue swimming crab to the United States and durian to China, with the latter recently shipping 459 metric tons worth Rp42.5 billion. The ministry's Trans Karya Nusa programme aims to attract investment and connect local producers with global markets to ensure economic benefits for transmigrant communities.

ITDC Revamps Bali's Peninsula Island to Boost Tourism Activity

State-owned tourism developer ITDC is undertaking a major revitalisation of the Peninsula Island area in Nusa Dua, Bali, to enhance destination quality and stimulate economic activity. The project, which includes upgrading access to the popular Water Blow site and improving public infrastructure, has reached 23 percent overall progress. The transformation aims to support MICE tourism, sports events, and provide economic benefits for local MSMEs.

Court Rules State Losses in Chromebook Procurement Case Reach Rp1.56 Trillion

The Jakarta Corruption Court has determined that state losses in the Chromebook procurement corruption case amount to Rp1.56 trillion, based on an audit by the BPKP. The losses stem from the difference between the net payment and the fair value of laptops procured between 2020 and 2022. Former Education Minister Nadiem Makarim was sentenced to prison, fined, and ordered to pay restitution.

Nadiem Vows to Appeal 10-Year Sentence, Claims Truth Was Ignored

Former Indonesian Education Minister Nadiem Makarim has pledged to appeal a 10-year prison sentence for corruption related to Chromebook procurement, claiming the court ignored key facts. The Jakarta Corruption Court also ordered him to pay Rp809 billion in restitution, a sum he insists he never received and cannot pay. Nadiem highlighted a dissenting judge's opinion calling for his acquittal and vowed to continue fighting for what he believes is the truth.

Ministry of Communication and Digital Teams Up with Meta to Tackle Online Gambling Comment Spam

Indonesia's Ministry of Communication and Digital (Kemkomdigi) has partnered with Meta to establish a joint team aimed at curbing the spread of online gambling content, particularly through spam comments on social media. The initiative comes in response to a 128 per cent surge in such spam over the past fortnight, which analysis suggests is driven by organised bot networks targeting high-profile accounts. The government plans to expand this collaborative approach to include other digital platforms to address the cross-border challenge.

Minister of Religious Affairs Stresses Importance of Sustaining BOS for Madrasahs and Pesantren

Minister of Religious Affairs Nasaruddin Umar has emphasised the critical need to sustain the School Operational Assistance (BOS) programme for madrasahs, pesantren, and religious schools. The government is currently discussing the 2026 budget, which faces a shortfall of approximately Rp61.99 billion against a required ceiling of Rp7.989 trillion. The ministry is also conducting a thorough evaluation to improve the technical distribution and governance of the education aid to ensure it is more targeted and effective.

Social Affairs Minister: Parental Poverty Must Not Be a Child's Destiny, State Opens Path to Education

Social Affairs Minister Saifullah Yusuf has declared that the government's 'Sekolah Rakyat' (People's Schools) programme represents a moral commitment to break the cycle of poverty. Speaking at a seminar, he stressed the state's responsibility to provide quality education and a safe environment for all children. The minister also highlighted emerging challenges in elderly care and disability inclusion as Indonesia's population ages.

MAMI Manages Rp 124.3 Trillion in Funds as of Q1 2026, While Pursuing ESG Initiatives

PT Manulife Aset Manajemen Indonesia (MAMI) reported assets under management of Rp 124.3 trillion as of the end of the first quarter of 2026, serving over 2.6 million investors. The firm emphasised its disciplined risk management approach to navigate volatile market conditions. Marking its 30th anniversary in Indonesia, MAMI also reinforced its commitment to sustainability by planting 1,000 trees in Bekasi.

Social Affairs Minister: Military Cadets to Foster Independence in 'Sekolah Rakyat' Students

Social Affairs Minister Saifullah Yusuf has clarified that the planned involvement of military academy cadets in 'Sekolah Rakyat' (People's Schools) is solely aimed at building student character and independence, not military training. The initiative will see around 1,000 cadets mentor students in dormitory life skills such as cleanliness and discipline during a five-day programme in August 2026. The ministry emphasised a persuasive, empathetic approach, allowing students to return home periodically, given their diverse psychological backgrounds and the adaptation challenges of boarding school life.

Police Close Printing House in Senen for Crime Scene Sterilisation

Police have temporarily closed a printing business in Senen, Central Jakarta, where three employees were allegedly held captive for 21 days. The closure is to preserve the crime scene during the investigation into the false imprisonment, which reportedly involved the victims being handcuffed and denied food. Seven suspects, including the owner, have been arrested and charged under the Criminal Code.

Nusuk Travel Unveils New Packages and Hotel Partnerships for Hajj and Umrah Season

Nusuk Travel has announced a series of new initiatives for the upcoming pilgrimage season, including integrated travel packages and exclusive hotel partnerships. The offerings, highlighted at the International Islamic Expo 2026, feature stays at properties like Mövenpick and the new Olayan Hotel, alongside streamlined visa services. The company aims to simplify the journey for pilgrims travelling to Mecca and Medina.

Undana Kupang Graduates 1,421 Students, NTT Governor Highlights AI Use

Nusa Cendana University in Kupang has graduated 1,421 students, with East Nusa Tenggara Governor Emanuel Melkiades Laka Lena cautioning against the dehumanising potential of artificial intelligence. The governor urged graduates to use AI wisely and ethically, while also directing their knowledge towards combating poverty in the province. The university rector echoed the sentiment, warning that over-reliance on AI could erode critical thinking skills.

B50 Mandate Takes Effect Tomorrow, Government Urged to Recalculate Risks

As Indonesia's mandatory B50 biodiesel blend comes into force on 1 July 2026, the Institute for Essential Services Reform (IESR) has called for a comprehensive evaluation of the policy. The think tank warns that while the mandate may reduce diesel imports, it could also drive up cooking oil prices, affect smallholder farmers, and cause environmental damage. IESR argues that electrification and fuel efficiency standards offer more effective long-term strategies for energy security and decarbonisation.

New Modus Operandi: Online Gambling Rings Target Regional Influencers

Indonesia's Ministry of Communication and Digital Affairs has revealed a new tactic by online gambling operators, who are now targeting social media accounts with high engagement, particularly those of regional influencers. The ministry reports that 52% of regional influencers are being flooded with spam comments, as these accounts are seen as more effective for reaching potential gamblers. The government is calling for cross-agency cooperation and collaboration with private platforms to tackle the issue.

EV adoption supports RI's inclusive, sustainable development: AHY

Coordinating Minister Agus Harimurti Yudhoyono (AHY) has stated that electric vehicle adoption goes beyond cutting emissions, improving air quality and public health while fostering inclusive and sustainable development. He stressed that the transition to low-emission mobility requires active public participation, including from online motorcycle taxi drivers, and collaboration between the government, private sector, and the public. Ride-hailing company Grab Indonesia is supporting this push by expanding its EV fleet, which has doubled to over 28,000 vehicles as of May 2026, with plans to triple it by year-end.

Indonesia Has Upper Hand in Korean Semiconductor Investment Race

South Korea's ambassador to Indonesia has indicated that Jakarta holds a strong position in the race to attract Korean semiconductor investment, citing the country's large market and critical mineral reserves. However, the envoy stressed that any concrete deal will depend on Indonesia's ability to improve its business climate and remove trade barriers. The government is already training thousands of chip engineers in partnership with Arm, hoping to lure major players like SK Hynix to invest in next-generation chip production.

Home Affairs Minister Tito Confirms Expansion of Social Assistance Digitalisation Pilot as a Step Towards Government Technology

Home Affairs Minister Tito Karnavian has affirmed the government's commitment to expanding the digitalisation pilot for social assistance (bansos) to 43 regencies and cities. The initiative, which follows a successful trial in Banyuwangi, is a foundational step towards establishing a comprehensive Government Technology (GovTech) ecosystem. The programme aims to enhance efficiency and transparency in social protection systems by utilising artificial intelligence and cross-sector data exchange.

Bekasi City Government Tightens Truck Supervision Following Fatal Crash

The Bekasi city administration is tightening oversight of heavy vehicle operations after a fatal collision at the Unisma intersection killed a motorcyclist and injured nine others. The city will enhance field monitoring of operational hour restrictions and coordinate with central government and police to enforce roadworthiness tests. Authorities have also confirmed that victims will receive compensation and medical coverage through Jasa Raharja and BPJS Ketenagakerjaan.