Indonesian Political, Business & Finance News

Archive: 14 July 2026

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Competing with Vietnam: Indonesia's Appeal for British and European Investors

Amid global economic and geopolitical turmoil, Indonesia is positioning itself as a stable alternative for British and Western European investors. Bilateral trade with the UK has reached USD 4 billion, while trade with the EU stands at USD 29 billion. The upcoming IEU-CEPA agreement is expected to further enhance Indonesia's attractiveness compared to regional rival Vietnam.

Pelita Harapan Group Expands Education Ecosystem in Bandung

Pelita Harapan Group (PHG) is expanding its educational network with the introduction of Sekolah Dian Harapan (SDH) in Bandung, emphasising a holistic approach that combines academic achievement with character building. PHG President Dr. Stephanie Riady highlighted the importance of collaboration between schools, families, government, and society to nurture well-rounded individuals. The West Java provincial government welcomed the initiative, viewing it as a strategic partnership to enhance human resource quality in the region.

Do Not Be Lulled by the False Calm of the Global Economy

Despite apparent market calm with easing oil prices and inflation, major global institutions warn of a 'Fragile Relief Syndrome' where risks have merely shifted form. The global growth engine is transitioning from commodity cycles to technology cycles, demanding that Indonesia move beyond resource-based growth. Indonesia's fiscal policy must transform into a productivity engine focused on innovation, AI, and digitalisation to avoid the pitfalls of commodity dependence.

Lawyer Reveals Seized Money from de'Clan Cafe Intended for Port Construction

The legal team for Don Ritto, a suspect in three corruption cases, claims that billions of rupiah seized by police from a cafe and money changer were earmarked for a port development project in East Kalimantan. The lawyer insists the funds are unrelated to the graft cases involving former senior prosecutor Febrie Adriansyah. Meanwhile, the House of Representatives Commission III has pledged to supervise the investigation to ensure it targets individuals rather than sparking inter-institutional conflict.

Deputy Trade Minister: Indonesia Positions Trade as Instrument for World Peace

Deputy Trade Minister Dyah Roro Esti Widya Putri has affirmed Indonesia's commitment to using trade as a tool for peace and prosperity amid rising geopolitical fragmentation and protectionism. She emphasised that Indonesia chooses collaboration, open economic diplomacy, and a strengthened multilateral trading system over confrontation. The minister highlighted the country's strategy of market diversification, industrial competitiveness, and support for WTO reform.

Reconstruction of Tendean Pedestrian Bridge Remains Uncertain

The Jakarta Bina Marga Agency has stated that the timeline for rebuilding the Tendean pedestrian bridge, which was struck by a truck, cannot yet be determined. The agency is prioritising the removal of the damaged structure to restore normal traffic flow while it prepares a technical plan for reconstruction. The incident has caused billions of rupiah in material losses and significant social disruption.

Trump to Impose 20% Tax on Gulf Allies' Cargo Transiting Strait of Hormuz

US President Donald Trump has announced plans to levy a 20 per cent tax on the cargo value of ships transiting the Strait of Hormuz, framing it as reimbursement for American military protection. The move targets Gulf allies including Saudi Arabia, the UAE, and Qatar, and comes amid heightened regional tensions following US-Israeli strikes on Iran. The policy risks compounding economic losses for Gulf states already caught in the crossfire of escalating conflict.

Deputy Minister: Carbon trading instrument drives national economy

Indonesia's Deputy Minister of Forestry, Rohmat Marzuki, has stated that the carbon trading instrument is strengthening the forestry sector's role as a pillar for achieving national emission reduction targets while driving the green economy. The government is supporting implementation through ministerial approvals for carbon unit issuance and the launch of an integrated carbon registry system. Indonesia's forest-based carbon trading potential is estimated at 13.4 billion tonnes of CO2 equivalent between 2024 and 2050.

National Police Chief Urges Investigators to Understand New Criminal Procedure Code for Justice

National Police Chief General Listyo Sigit Prabowo has instructed all police investigators to thoroughly understand the new Criminal Procedure Code (KUHAP) to ensure justice is served. The directive follows the launch of an annotated guide to the 2025 KUHAP, which aims to clarify the law's provisions for both the public and law enforcement officials. The book, a product of the House of Representatives' Commission III, provides comprehensive explanations and the background behind each article.

DPR Urges Government to Study Decline in State School Enrolment Across Regions

The House of Representatives has called for a comprehensive study into the falling number of students at state schools, citing demographic shifts and the rise of faith-based education as potential factors. A senior legislator also warned that new government school programmes must be carefully mapped to avoid undermining existing institutions. The DPR is considering school mergers as a rational efficiency measure, while stressing that remote and underdeveloped regions require a different approach.

PBNU Urges Global Community to Call for End to Iran-US Conflict

Nahdlatul Ulama (PBNU) has called on the international community to unite in demanding an end to the escalating conflict between Iran and the United States. Chairman Yahya Cholil Staquf urged all parties, including the US and Israel, to cease violence, which he said harms all nations. The appeal aligns with the Indonesian government's stance, which has also pressed for adherence to a recent peace memorandum and an immediate halt to hostilities in the Strait of Hormuz.

Australia Reveals Difficulties in Enforcing Child Social Media Ban, Similar to Indonesia's New Rules

Australia is facing significant challenges in enforcing its ban on social media use for children under 16, a regulation similar to Indonesia's newly implemented PP Tunas. Despite the law being passed in December 2025, platforms are failing to comply with age verification and are unable to detect sexual extortion scripts targeting minors. The Australian eSafety Commissioner reports a lack of adequate response from tech companies, even as thousands of complaints have been lodged.

Danamon says third-party fund growth remains on track until end of 2026

PT Bank Danamon Indonesia Tbk has affirmed that its third-party fund (DPK) growth is on target through to the end of 2026, with strengthening liquidity as a key focus amid intense competition for deposits. The bank is leveraging its business ecosystem, including automotive and fast-moving consumer goods sectors, alongside digital enhancements to drive sustainable funding. Industry-wide, the Financial Services Authority (OJK) reported robust DPK growth of 13.49% year-on-year in May 2026, supported by ample banking liquidity.

Traffic Diverted on Gatot Subroto to Mampang Prapatan After Truck Strikes Footbridge

Traffic from Jalan Gatot Subroto heading towards Mampang Prapatan in South Jakarta was diverted on Tuesday afternoon following an incident where a truck struck a pedestrian bridge. The bridge on Jalan Kapten Tendean was left in a near-collapse state, prompting authorities to close roads and begin dismantling the structure. The truck driver is suspected of using a mobile phone at the time of the collision.

LRT Jakarta to Extend to Manggarai, Governor Pramono Prepares Fare Adjustment

The Jakarta provincial government is set to inaugurate the LRT Jakarta Phase 1B extension to Manggarai in August 2026, completing a 12.2-kilometre line. Governor Pramono Anung has indicated that the current flat fare of Rp 5,000 will be reviewed and adjusted, using the MRT's tariff structure as a reference. An integrated fare system for all city-managed public transport is also under development.

Gowa Regent Husniah Walks Out of DPRD Special Committee Hearing

Gowa Regent Sitti Husniah Talenrang abruptly left a hearing held by the DPRD's Special Committee (Pansus) on the right of inquiry, citing a failure to uphold her legal rights. Her legal team argued that the committee refused her request to receive questions collectively and to focus the discussion on governmental policy, instead posing questions of a personal nature. The Pansus chairman subsequently stated that the regent would not be summoned again and that the committee would proceed to draw its conclusions on the allegations, which include abuse of authority and procurement irregularities.

Gus Yahya Dismisses Palace Interference Claims Ahead of PBNU Congress

PBNU Chairman Yahya Cholil Staquf has refuted allegations of presidential intervention in the upcoming Nahdlatul Ulama congress, stating that any claim of having Prabowo Subianto's endorsement is a lie. He emphasised the organisation's institutional maturity and independence, asserting that the government has no interest in meddling with NU's internal affairs.

KPK Chair Confirms Communication with Attorney General on Febrie Adriansyah Corruption Case

Corruption Eradication Commission (KPK) Chairman Setyo Budiyanto has confirmed he is in communication with Attorney General ST Burhanuddin regarding the corruption case involving former Junior Attorney General for Special Crimes (Jampidsus) Febrie Adriansyah. The Attorney General's Office (AGO) has stated it will involve the KPK in a supervisory role to ensure professionalism and transparency. A special team of prosecutors is being formed to handle the case and minimise potential conflicts of interest.

Rolls-Royce begins work on mini nuclear power plant in Czech Republic

The Czech Republic is preparing to build its first small modular reactor (SMR) in partnership with British firm Rolls-Royce. The initial unit is planned near Detmarovice or Tusimice, with Czech energy holding CEZ holding a stake in the venture. The partners aim to expand SMR construction to other countries if the project proves successful.

Maruarar-Nusron Duo to Distribute Free SHM Certificates and Affordable Housing

The Indonesian government is accelerating housing provision for low-income communities through a new collaboration between the Ministry of Housing and the Ministry of Agrarian Affairs. Key policies include utilising state-owned land, offering free certification to upgrade building use rights to full ownership, and developing satellite cities. The initiative involves multiple financing schemes, including state budget funds, Danantara, and corporate social responsibility contributions from companies like Astra.

Social Affairs Minister Ensures Safe, Bullying-Free School Orientation for 'Sekolah Rakyat'

Social Affairs Minister Saifullah Yusuf has instructed all 'Sekolah Rakyat' heads to ensure a safe and comfortable environment during the new school orientation period, explicitly banning any form of hazing. He emphasised that the facilities, built with public funds, are a gift from President Prabowo for underprivileged families and must be maintained with discipline. The orientation will be conducted in four waves across 101 schools starting 14 July.

Densus 88 Reveals Suspect in MAN 3 Padang Explosion is a Student

Indonesia's counter-terrorism unit, Densus 88, has identified the suspect behind an explosion at a state Islamic senior high school in Padang, West Sumatra, as a 17-year-old student. The suspect allegedly learned to make explosives online and was inspired by a previous school bombing in Jakarta. No casualties were reported, and authorities are continuing their investigation.

Majority of Americans Believe War with Iran Will Be Prolonged, Poll Shows

A new Reuters/Ipsos poll reveals that 79 percent of Americans expect a protracted military conflict with Iran, as tensions escalate in the Gulf. The survey comes after Washington re-imposed a blockade on Iranian shipping and both nations exchanged missile and drone strikes, casting doubt on a recently signed memorandum of understanding.

Minister Amran adds 17 million coffee seedlings to boost Aceh production

Agriculture Minister Andi Amran Sulaiman has announced the distribution of 17 million coffee seedlings across Aceh in 2026 to strengthen production and improve farmer welfare. The initiative aims to solidify Gayo coffee's position as a globally competitive commodity. The minister stressed that continued government support depends on proper maintenance of the plants by farmers.

Bomb Threat Suspect at SDN Srengseng Sawah 15 Pagi Officially Named as Suspect

South Jakarta Police have officially named a 34-year-old man as a suspect for making a bomb threat against SDN Srengseng Sawah 15 Pagi on the first day of the school orientation period. The suspect, identified as MY, claimed he acted out of mischief, though police are continuing to investigate his true motives. The incident caused significant disruption, but learning activities have since returned to normal.

Pickup Driver Caught Red-Handed Attempting to Dump Bone Waste into Bogor's Cisadane River

A pickup truck driver was intercepted by residents while attempting to dispose of animal bone waste into the Cisadane River in Bogor Regency. The driver claimed he was acting on the orders of his employer, a chicken entrepreneur. Police confirmed the incident and stated the waste was redirected to the Galuga final disposal site.

Ex-Deputy Minister's Home Raided, 375 kg of Gold Bars Found

Iraqi anti-corruption authorities have seized 375 kilogrammes of gold bars from the residence of former Deputy Oil Minister Adnan Al Jumaili. The discovery is part of a wider crackdown under Prime Minister Ali Faleh al-Zaidi, which has already recovered over US$100 million in missing funds. The case involves allegations that Al Jumaili exploited state resources and government contracts for bribes and personal gain.

Philanthropy Association Proposes Zakat Tax Credit Scheme

The Indonesian Philanthropy Association (PFI) has proposed a tax credit scheme for zakat payments to help bridge the gap between the nation's Rp 327 trillion zakat potential and the current Rp 40 trillion realisation. The policy aims to incentivise formal, institutionalised giving among the middle and upper classes, shifting away from the predominantly informal distribution channels. PFI argues the move would boost compliance, strengthen philanthropic governance, and serve as state recognition of Muslim social contributions, citing Malaysia's successful implementation as a model.

Rupiah Closes Stronger at 18,091 per US Dollar

The Indonesian rupiah strengthened by 18 points to close at 18,091 per US dollar in spot trading on Tuesday, buoyed by positive domestic sentiment from S&P's stable outlook on the country's credit rating. The currency's resilience came despite a strengthening US dollar and global concerns over escalating tensions in the Middle East. Analysts predict the rupiah will trade in a volatile range on Wednesday, potentially weakening amid rising oil prices driven by the Strait of Hormuz blockade.

After Fatalities, Riau Conservation Agency Sets Two Traps for Sumatran Tiger Near Pelalawan Plantation Camp

Following two fatal tiger attacks in a week, the Riau Natural Resources Conservation Agency (BBKSDA) has deployed two cage traps at a timber plantation camp in Pelalawan. The second victim, a 29-year-old man, was mauled to death on Friday night, just days after a 12-year-old boy was killed in the same area. Authorities suspect the same young male Sumatran tiger is responsible for both attacks.

Jakarta's Bina Marga: No Compensation Agreement Yet for Tendean Footbridge Hit by Truck

The Jakarta Bina Marga Agency has stated that no compensation agreement has been reached with the company whose crane truck struck the Tendean pedestrian bridge in South Jakarta. The bridge has been assessed as severely damaged and unsafe, leading to its demolition, with material losses estimated in the billions of rupiah. The agency is prioritising clearing the site to restore traffic flow, while plans for a replacement bridge require further technical review.

DKI Jakarta Suffers Billions in Losses After Tendean Pedestrian Bridge Hit by Truck

The DKI Jakarta government has incurred billions of rupiah in material losses after a truck carrying heavy equipment struck the Tendean pedestrian bridge in South Jakarta. The bridge has been deemed structurally unsound and will be demolished rather than repaired, causing significant disruption to public mobility. The driver has been detained, but no compensation agreement has yet been reached with the truck's owner.

PM Starmer urges acceleration of Ukraine's air defence systems

British Prime Minister Keir Starmer has called for the rapid production and supply of air defence systems to Ukraine to prevent further civilian casualties. Speaking in Paris, he confirmed the UK's readiness to provide more ammunition and long-range missiles after joining an EU loan programme. Starmer also noted that the multinational 'coalition of the willing' could deploy troops within days of a ceasefire.

Strait of Hormuz and the Fragility of the US-Iran Ceasefire Understanding

The US-Iran ceasefire, established by a June 2026 Memorandum of Understanding, is under severe strain due to conflicting interpretations over navigation rights in the Strait of Hormuz. Iran's attempts to control and levy charges on shipping through the strategic waterway, in defiance of UNCLOS, have provoked renewed US airstrikes and Iranian retaliation. The escalating tit-for-tat attacks threaten to collapse the truce entirely, with significant implications for global oil distribution and a key lesson for Indonesia on safeguarding its own strategic sea lanes.

As the World Scrambles, Indonesia Targets Downstream Processing of Rare Earth Metals

The Indonesian government is intensifying its downstream processing and industrialisation efforts to boost its bargaining power in global trade, moving beyond raw commodity exports. A key focus is rare earth metals, a highly sought-after resource, alongside building industrial ecosystems to attract investment in high-tech supply chains like semiconductors. Challenges remain in streamlining regulations and securing energy supplies to enhance production efficiency and the competitiveness of national products.

DKI Jakarta Provincial Government to Review LRT Jakarta Fares

The DKI Jakarta provincial government will reassess LRT Jakarta fares once the Phase 1B route from Velodrome to Manggarai becomes operational, targeted for August 2026. Governor Pramono Anung stated that the fare adjustment will be decided professionally, taking into account public affordability and potential subsidies. The MRT fare structure may serve as a reference for the new pricing.

Police Investigate Alleged Sexual Harassment of 10 USU Female Students

Police in Medan have launched an investigation into alleged sexual harassment involving at least ten female students at the University of North Sumatra (USU). The university's task force on sexual violence has already questioned the victims, though no formal police report has been filed yet. Authorities are prioritising the safety and confidentiality of the victims while probing incidents reportedly occurring in the medical and economics faculties.

Cargo Boss Gave Subordinates Credit Cards to Pay for Customs Officials' Karaoke

A personal assistant to the owner of PT Blueray Cargo testified that he was provided with a credit card to fund karaoke entertainment for a senior customs official. The witness stated the expenses were recorded by the company's finance department. The case involves three customs officials accused of accepting bribes and gratuities totalling Rp 78.8 billion.

Google Gemini AI Users in Southeast Asia Double in a Year

Google has reported that active users of its Gemini AI application in Southeast Asia have more than doubled over the past year, marking the fastest adoption rate for any Google app in region. The growth is driven by a young, tech-savvy population and the model's strong performance in local languages, with nearly 70 per cent of prompts written in native tongues. Indonesia was highlighted as the most creative nation for visual AI, generating 9 million images daily.

Malaysia in Uproar Over 'Israeli Village' in Ghost City

The Johor state government has ordered a multi-agency investigation into a tech startup community in Forest City following public alarm over the presence of Israeli nationals. The Network School, founded by a former Coinbase executive, is suspected of hosting participants who may have used second passports to bypass Malaysia's ban on Israeli citizens. Authorities are probing potential violations of immigration, business licensing, and national security laws.

Human Rights Ministry Evaluates TNI and Polri Laws to Ensure Rights-Based Policies

Indonesia's Ministry of Human Rights is conducting an evaluation of the TNI and Polri laws to ensure state policies align with human rights principles. The review, part of a broader analysis of ten priority policies for 2026, will also examine the military justice system to prevent discriminatory treatment. The ministry aims to provide recommendations for regulatory changes where fundamental human rights issues are identified.

LPSK Rejects Sony Sonjaya's Justice Collaborator Plea in Free Nutritious Meal Corruption Case

The Witness and Victim Protection Agency (LPSK) has formally rejected the justice collaborator application of Sony Sonjaya, a suspect in the alleged corruption of the Free Nutritious Meal (MBG) programme. The agency ruled that Sonjaya failed to meet cumulative legal criteria, citing his role as a main perpetrator and lack of significant information on other intellectual actors. The decision closes the door for any legal leniency or special protection for the suspect in the upcoming trial.

Sailah's Story: From Dirt Floor to Decent Home Thanks to Central Java Provincial Government Assistance

Central Java's Deputy Governor, Taj Yasin, inspected a renovated uninhabitable house (RTLH) in Kebumen, ensuring the programme's impact extends beyond physical structures to the family's economic well-being. The provincial government has pledged to connect the beneficiary's unemployed child with job opportunities and vocational training. The RTLH assistance programme, which renovated 17,000 units in 2025, is targeting a further 5,000 units in 2026.

MPR and Supreme Court Agree to Safeguard Judicial Independence, Push for Faster Case Resolution

Indonesia's People's Consultative Assembly (MPR) and the Supreme Court (MA) have pledged to uphold judicial independence as a cornerstone of the rule of law. The leaders also discussed tackling a backlog of 48,000 cases in 2025 by accelerating the adoption of electronic court systems. The MPR affirmed it would respect the Supreme Court's authority and not interfere in its internal affairs.

IHSG Closes Slightly Higher in the Green at 6,039, Led by These Stocks

The Indonesia Stock Exchange (IDX) Composite Index (IHSG) managed to close in positive territory on Tuesday, edging up 0.03% to 6,039.52. The modest gain was supported by strong performances from stocks such as Solusi Sinergi Digital, United Tractors, and Medco Energi, despite ongoing profit-taking pressures. The index demonstrated resilience, recovering from an intraday low of 6,002.90.

Drama in Japan: Imperial Throne Faces Succession Crisis

Japan's imperial family is confronting a succession crisis due to a dwindling number of eligible male heirs, with only three remaining. Despite the nation having its first female prime minister, the government is proposing to expand the line of succession by reinstating defunct male branches of the family rather than allowing women to ascend the Chrysanthemum Throne. The proposal has sparked debate, as public opinion and some academics favour permitting an empress, a practice Japan has historically observed.

KPK Investigates Alleged Rp100 Million Payment to Gus Miftah in Railway Corruption Case

Indonesia's Corruption Eradication Commission (KPK) is probing allegations that preacher Gus Miftah received Rp100 million, a fact that emerged during a trial concerning corruption at the Directorate General of Railways. The anti-graft body will analyse the initiative, motive, and purpose of the payment to determine if the funds are linked to the criminal case. If proven to be proceeds of corruption, the KPK may move to seize the money.

Prosecutors Search Kepatihan Sub-District Office in Tulungagung Land Procurement Corruption Probe

Investigators from the Tulungagung Prosecutor's Office have searched the Kepatihan Sub-District office in East Java to gather evidence in a suspected corruption case. The investigation concerns a land procurement project for Griya Kanjengan in the 2022 fiscal year, valued at approximately Rp10.5 billion. Documents including land certificates, ownership histories, village land registers, and inheritance letters were seized to strengthen the case.

Environment Ministry Urges Local Governments to Beware of Pitfalls in Carbon Trading

Indonesia's Environment Minister has called on regional governments to improve their understanding of the carbon trading business to avoid being exploited by foreign investors. He highlighted the significant economic potential of waste management, citing a Bekasi facility that could generate hundreds of billions of rupiah through emission reduction certificates. The ministry plans to roll out a national training programme for local officials to ensure they are not disadvantaged in negotiations.

Defence Ministry Discusses Strengthening Defence Cooperation with South Korea

Indonesian Defence Minister Sjafrie Sjamsoeddin met with the South Korean Ambassador to discuss concrete steps to bolster the strategic defence partnership. The talks covered plans for a '2+2' meeting of foreign and defence ministers, joint education and training, and air defence system development. The cooperation aims to advance domestic defence industry capabilities through technology transfer and balanced mutual benefits.