Indonesian Political, Business & Finance News

Archive: 14 July 2026

Showing 1,151-1,200 of 1,599 articles

Andre Rosiade Oversees Acceleration of Rp 29 Trillion Bukittinggi-Sicincin Toll Road

Lawmaker Andre Rosiade is spearheading efforts to accelerate the construction of the Bukittinggi-Sicincin toll road section, a Rp 29 trillion national strategic project in West Sumatra. A coordination meeting brought together central and local government officials, law enforcement, and the state-owned construction firm Hutama Karya to resolve land acquisition hurdles. The project is expected to boost regional connectivity, facilitate agricultural distribution, and enhance tourism between Riau and West Sumatra.

Forest fire on Mount Gombak in Ponorogo scorches 15 hectares

A forest and land fire on Mount Gombak in Ponorogo, East Java, burned approximately 15 hectares of land on Monday evening. Firefighters and a joint team of personnel took around eight hours to extinguish the blaze, which came within 100 metres of residential areas. Authorities are investigating the cause of the fire and have urged the public to remain vigilant during the current dry and windy conditions.

Pos Indonesia Delays Rp24.12 Billion Sukuk Coupon Payment Due to Cash Shortfall

State-owned postal service PT Pos Indonesia has failed to meet a scheduled Rp24.12 billion payment on its sustainable ijarah sukuk, citing insufficient cash reserves. The company formally notified the Indonesia Stock Exchange's custodian (KSEI) of the delay on the due date, 7 July 2026. The missed payment represents the sixth periodic return on the Series A-C notes issued under its 2024 programme.

TransNusa Launches New Direct Bali-Phuket Route

Indonesian airline TransNusa has officially launched a new direct international service connecting Bali and Phuket, Thailand, to boost regional tourism and strengthen Bali's role as a key hub. The new route, commencing 9 September 2026, will operate four times weekly and is expected to attract holidaymakers, digital nomads, and business travellers. This expansion follows the recent announcement of a Jakarta-Bangkok service, further solidifying economic and people-to-people ties between Indonesia and Thailand.

Iran Mocks Trump's Ambition to Levy 20 Percent Cargo Tribute in the Strait of Hormuz

Iranian Foreign Minister Abbas Araghchi has derided President Donald Trump's unilateral declaration of a maritime blockade and a 20 percent protection tariff on cargo transiting the Strait of Hormuz. Araghchi insisted that Tehran remains the sole legitimate guardian of the strategic waterway, dismissing Washington's claim to the role. The escalating war of words and reported military skirmishes threaten to collapse a fragile peace memorandum brokered by Pakistan in June 2026.

Houthis Fire Missiles at Saudi Airport, Threatening to Reignite Border Conflict

Yemen's Houthi group launched missiles at an airport in southern Saudi Arabia, marking the first such attack since a 2022 truce. The escalation follows Houthi accusations that Saudi warplanes bombed Sanaa airport to prevent an Iranian plane from repatriating a Houthi delegation. The renewed violence threatens to unravel the fragile calm along the Saudi-Yemeni border.

Aceh Democrat Chair Candidate Targets 2 DPR RI Seats in 2029

Nurdiansyah Alasta, a senior figure in Aceh's Democratic Party, has announced his candidacy for the party's regional leadership, aiming to secure two seats in the national parliament by 2029. He claims to have secured broad support from the majority of local party branches and key Acehnese figures, including the Governor. The internal party election is scheduled for August.

S&P Maintains Indonesia's Rating, BI Confident State Revenue Will Recover

S&P Global Ratings has affirmed Indonesia's sovereign credit rating at BBB with a stable outlook, reflecting sustained international confidence in the country's macroeconomic stability. Bank Indonesia and government officials expect state revenues and export earnings to recover, supported by improving commodity prices and fiscal policy reforms. The government's commitment to maintaining the fiscal deficit below 3 percent and enhancing revenue from natural resources is seen as key to future rating upgrades.

Perumdam TKR Provides Free Water Connections to Residents Affected by Jatiwaringin Landfill Fire

Perumdam Tirta Kerta Raharja (TKR) in Tangerang Regency is providing free water connections and three months of waived bills to residents affected by the recent fire at the Jatiwaringin landfill. The initiative, part of a broader recovery effort, also includes water tanker distribution and the provision of basic food and health supplies. The state-owned water utility aims to ease the burden on the community and ensure access to clean water during the recovery period.

Mother Working at SPPG, Baby in Wonosobo Named 'Muhammad MBG Subianto'

A couple in Wonosobo, Central Java, has named their newborn son Muhammad MBG Subianto as a tribute to the Free Nutritious Meals (MBG) programme. The mother, Yuharni, works at a Nutritional Service Fulfilment Unit (SPPG) and credits the initiative, championed by President Prabowo Subianto, with providing her employment and economic stability. The name has drawn mixed reactions from the public, though the family remains focused on the positive impact the programme has had on their lives.

Indonesia Happy S&P Maintains Credit Rating, Purbaya: An Honest Institution

Finance Minister Purbaya Yudhi Sadewa expressed satisfaction after S&P Global Ratings maintained Indonesia's sovereign credit rating at BBB for long-term and A-2 for short-term, with a stable outlook. He stated the decision validates the government's prudent fiscal management and refutes negative public perceptions. S&P noted that the current economic weakening is temporary and expects government revenues to recover, supported by commodity exports and fiscal policy improvements.

KUR Ceiling of Rp340 Trillion, Only 50.83% Disbursed

Indonesia's Coordinating Ministry for Economic Affairs reports that only 50.83% of the Rp340 trillion People's Business Credit (KUR) ceiling has been disbursed as of late June. The government continues to provide this financing scheme to support economic growth, job creation, and productive sectors. The KUR programme is part of a broader effort to expand access to financing for MSMEs.

Finance Minister Purbaya confirms no tax target increase in medium term

Finance Minister Purbaya Yudhi Sadewa has assured that the government will not raise tax rates in the medium term, instead focusing on expanding the tax base. The strategy involves leveraging data and technology to capture revenue from the digital economy, shadow economy, and informal sector. This approach aims to boost state revenue while maintaining a favourable investment climate.

Purbaya Affirms S&P's Stable Rating Outlook as Proof of Indonesia's Economic Resilience

Finance Minister Purbaya Yudhi Sadewa stated that S&P's decision to maintain Indonesia's sovereign credit rating at BBB with a stable outlook reflects international confidence in the country's economic resilience. The rating agency projects Indonesia's economic growth to remain around 5% over the next two to three years, supported by strong domestic demand and investment. The government's commitment to maintaining the budget deficit below 3% of GDP and strengthening state revenue collection were highlighted as key factors underpinning the positive assessment.

S&P Predicts Indonesia's 2026 Economic Growth at 5.1 Percent

S&P Global Ratings forecasts Indonesia's economic growth at 5.1 percent for 2026, citing external uncertainties and domestic interest rate hikes. The agency also expects the government to cut spending on programmes like the free nutritious meal initiative to maintain the fiscal deficit below the legal threshold. Despite currency pressures, S&P believes Bank Indonesia's policy responses will limit the depletion of foreign exchange reserves.

NTT Police Uncover Alleged Illegal Cigarette Circulation in Four Regencies

The East Nusa Tenggara (NTT) Police have seized 9,271 packs of cigarettes suspected of lacking trade legality permits across four regencies. The operation, conducted in Ende, Nagekeo, Ngada, and West Manggarai, is part of a commitment to protect the public and ensure a healthy trade climate. Investigators are coordinating with Customs and will continue to trace the distribution network, applying the Trade Law against the responsible parties.

The Legal Foundations of Islamic Economics

This article outlines the primary and secondary sources of Islamic economic law, highlighting the Qur'an and Hadith as its immutable foundations. It argues that the system's principles of justice, transparency, and risk-sharing offer universal and sustainable solutions to the failures of conventional finance. The piece stresses the need for consistent application and robust oversight to prevent the mislabelling of financial products.

US Embassy in UAE Temporarily Closes Due to Security Reasons

The United States Embassy in the United Arab Emirates has suspended all consular appointments for three days due to regional security concerns. The closure affects the embassy in Abu Dhabi and the consulate general in Dubai from 13 to 15 July. The announcement follows a recent military escalation between the US and Iran, including US strikes and retaliatory attacks on American bases.

MPR Continues National Gathering to Supreme Court to Discuss Annual Session Preparations for Independence Day

The People's Consultative Assembly (MPR) leadership visited the Supreme Court (MA) in Jakarta to discuss preparations for the upcoming annual session ahead of Indonesia's 81st Independence Day. The visit is part of a series of national gatherings that began with the Constitutional Court, where an invitation to the annual session was formally extended. The MPR is also engaging other state institutions, including the presidential office, to coordinate the traditional event.

BKPM announces Japanese biopharmaceutical firm Takeda to invest Rp539 billion

Japan's Takeda will invest USD 30 million, or approximately Rp539 billion, over two years to develop a plasma-derived medicinal product ecosystem in Indonesia. The initial phase focuses on building a plasma bank network as the foundation for a national plasma industry. The government views this as a strategic investment that will facilitate technology transfer, human resource development, and high-skilled job creation.

KPK Prosecutor Opens Customs Official Graft Trial, Dismisses 'Just Bad Luck' Defence

A Corruption Eradication Commission (KPK) prosecutor has opened the trial of three senior customs and excise officials by rejecting the notion that their arrest was merely a case of 'bad luck'. The defendants are accused of accepting bribes and gratuities totalling Rp 78.8 billion to facilitate the release of imported goods. The prosecutor urged the court to use the case as a catalyst for genuine systemic reform within the Directorate General of Customs and Excise.

When Job Opportunities Narrow, Islam Shows the Path of Initiative

As formal employment opportunities shrink due to automation and a mismatch between education and industry needs, an Islamic perspective reframes the crisis. The article argues that Islamic teachings actively encourage believers to pursue honest livelihood through creativity, skill development, and entrepreneurship rather than passively waiting for jobs. It highlights that dignity in Islam is derived from hard work and self-reliance, not job title, citing religious texts that elevate manual labour over begging.

New York City Mayor Enacts 'Click to Cancel' Rule, Banning Hidden Fees

New York City has introduced sweeping consumer protection rules, including a 'Click to Cancel' mandate and a ban on hidden junk fees. The regulations, championed by Mayor Zohran Kwame Mamdani, aim to make it as easy to cancel subscriptions as it is to sign up and require upfront disclosure of all mandatory charges. The move is expected to save New Yorkers millions of dollars annually and sets a new national standard for consumer rights.

Thousands Fall Victim to Fraud, Hajj Ministry Urged to Tighten Hajj Regulations

A member of Indonesia's House of Representatives has called on the Ministry of Hajj and Umrah to urgently tighten regulations after a task force uncovered dozens of violations during the 2026 Hajj season. The lawmaker stressed that regulatory loopholes are being exploited by unscrupulous individuals, leaving many citizens defrauded and deprived of their chance to perform the pilgrimage. She urged the ministry to shift from a reactive approach to implementing concrete preventive measures and ensuring restitution for victims.

IT Student Who Developed West Sumatra Provincial Government App Missing Since 2025

Ryan, a high-achieving informatics student at Andalas University who created applications for the West Sumatra provincial government, has been missing since November 2025. His family reported he left home in Padang in the early hours of 17 November, leaving behind his laptop, mobile phone, and wallet. Despite searches by his family, the university, and DNA testing following flash floods in the region, his whereabouts remain unknown.

Polairud Polda Metro Jaya Stocks 15,000 Catfish Fry in Bekasi to Support Food Security

The Jakarta Metropolitan Police's Water and Air Unit has released 15,000 catfish fry in Muaragembong, Bekasi, as part of a national police initiative to bolster the government's food security programme. Officers also inspected water quality and feed at local shrimp ponds to ensure optimal conditions for the fish. The effort included dialogue with local farmers and youth leaders to encourage community participation in maintaining security and order.

Danantara Announces 8 Winners of PSEL Tender, Chandra Asri (TPIA) Subsidiary Included

Indonesia's Danantara Investment Authority has named eight consortiums as conditional winners for the second phase of its waste-to-energy (PSEL) projects, covering 20 regencies and cities. The selection, which attracted 68 proposals from global firms, includes a subsidiary of PT Chandra Asri Pacific Tbk for the Serang Raya project. The overall programme targets 33 facilities nationwide with a total investment value of approximately USD 5 billion.

Sectors Local Investors Can Target Amid High Volatility

Amid global geopolitical uncertainty, local investors are advised to focus on specific sectors. Panin Asset Management Director Rudiyanto notes that while blue-chip stocks offer potential, their significant upside is dependent on foreign investor support. He suggests the commodity and energy sectors may be boosted by local investors due to rising global prices.

Discover a Holistic Healthy Lifestyle at BRI Wellness Experience 2026

State-owned bank BRI is hosting the BRI Wellness Experience 2026, a premium wellness festival in Jakarta combining fitness, mindfulness, and education. The event, running from 16 to 19 July 2026, aims to support holistic health while offering exclusive promotions for BRImo, debit, and credit card users. The initiative reflects a growing corporate focus on community wellness and digital transaction adoption.

House Commission III: Police Chief's Visit Proof of Polri-AGO-TNI Solidarity

Deputy Chairman of House Commission III Ahmad Sahroni has stated that the National Police Chief's recent visits to the Attorney General's Office and TNI Headquarters demonstrate strong inter-agency solidarity. He emphasised that the three institutions are working cohesively to support President Prabowo Subianto's agenda, particularly in law enforcement and anti-corruption efforts. The visits aimed to reinforce synergy amid public scrutiny over a case involving a former senior prosecutor.

Viewing the Downstream from the Upstream: A Lecturer's Reflection Amid the MPLS Commotion

A university lecturer in Bukittinggi reflects on the foundational importance of early childhood education after observing his child's school orientation (MPLS). He argues that the soft skills and social ethics cultivated by kindergarten and primary school teachers are the critical 'upstream' processes that determine the resilience and character of university students. The experience instilled a profound respect for early years educators as the true architects of civilisation.

S&P, Fitch, and Moody's Differ on Indonesia's Outlook: Who Deserves Trust?

Global rating agencies present a mixed picture for Indonesia's economy in 2026, with Moody's and Fitch revising their outlooks to negative while S&P maintains a stable outlook. The agencies cite concerns over policy predictability, fiscal pressures, and external risks, though all three still affirm Indonesia's investment-grade status. S&P's decision offers a counterpoint, highlighting expectations of recovering government revenues and a commitment to keeping the fiscal deficit below 3% of GDP.

Preserving the Legitimacy of the Rule of Law Amidst Fragile Public Trust

The legitimacy of the rule of law depends not only on formal statutes but on the intangible trust of citizens in fair and transparent legal processes. When institutional integrity is questioned, the state risks losing its moral authority, as public compliance stems from perceived justice rather than fear of punishment. The article argues that state institutions function as civic educators, teaching democratic values through their actions and consistency, not merely through school curricula.

DPR Targets Completion of Asset Forfeiture Bill This Year, Open to Recess Meetings

The Indonesian House of Representatives (DPR) is aiming to finalise the Asset Forfeiture Bill in 2026, with Deputy Speaker Saan Mustopa confirming the legislature is prepared to hold meetings during the recess period to meet the deadline. He dismissed public speculation that the DPR is obstructing the bill, emphasising that discussions are ongoing and that public input is being sought to strengthen the legislation.

Police Chief: Polri-Prosecutor Synergy Key to Integrated Criminal Justice

Central Jakarta Police Chief Reynold E.P. Hutagalung has emphasised that strong synergy between the police and the prosecutor's office is crucial for an integrated criminal justice system. The statement was made during a visit to the Central Jakarta District Prosecutor's Office, where both institutions committed to intensive coordination. The collaboration aims to ensure professional, transparent, and accountable law enforcement while boosting public trust.

Bogor Regency Government to Register Street Vendors at Tegar Beriman Square, Trading Only at Night

The Bogor Regency administration will register and regulate street vendors at Tegar Beriman Square in Cibinong, restricting trading hours to between 6 p.m. and midnight. The initiative aims to provide legal space for vendors while ensuring cleanliness and orderly management. Authorities also plan to offer additional trading locations and will collaborate with the community to manage parking and prevent illegal levies.

East Nusa Tenggara Police Uncover Illegal Cigarette Circulation in 4 Regions, Seize 9,271 Packs

The East Nusa Tenggara (NTT) Regional Police have dismantled an illegal cigarette distribution network operating across four regencies, seizing 9,271 packs. The operation, conducted in June and July 2026, targeted kiosks and shops in Ende, Nagekeo, Ngada, and West Manggarai suspected of trading cigarettes without proper permits. Authorities are coordinating with Customs and continuing investigations to trace the full distribution chain and hold responsible parties accountable.

Finance Minister Purbaya Reports 2025 Education Budget Realisation at 19.1%

Finance Minister Purbaya Yudhi Sadewa informed the DPR that the realisation of the education budget reached 19.1% of total state expenditure in 2025. The government maintains its commitment to allocating 20% of the state budget to education, divided across central government spending, transfers to regions, and financing. Purbaya expressed optimism that the realisation will be more optimal in 2026.

Indonesia's Hajj Minister to Reduce Pilgrim Stay Duration and Add Flight Slots, Saudi Arabia Responds

Indonesia's Minister of Hajj and Umrah, Mochamad Irfan Yusuf, is pursuing efficiency measures for the pilgrimage by reducing the length of stay for Indonesian pilgrims in Saudi Arabia. The plan, which involves increasing flight slots from both nations, has received support from Saudi Arabia's Minister of Transport and Logistics Services. The minister indicated that while the cost component is a separate mechanism, the policy is expected to have a positive impact on overall expenses.

Cianjur accelerates task force formation to prevent illegal migrant worker departures

The Cianjur Regency administration, alongside the Ministry for the Protection of Indonesian Migrant Workers and local police, is fast-tracking a task force to curb illegal migrant worker placements. The initiative aims to provide optimal protection for residents, particularly victims of fraud, by involving village officials in data collection and public education. The move follows the repatriation of a Cianjur woman who endured 14 months of abuse and unpaid wages in Libya.

Mobile Phone Sales in Freefall in 2026, Only These Brands Still Selling

Global mobile phone shipments plummeted 11% year-on-year in the second quarter of 2026, marking the weakest Q2 performance since 2013, as a memory chip crisis triggered by the AI boom wreaks havoc on the industry. Samsung and Apple bucked the trend by increasing their market share, while Chinese manufacturers Xiaomi, Oppo, and Vivo suffered double-digit declines. The crisis, exacerbated by geopolitical tensions and rising shipping costs, has made entry-level and mid-range handsets increasingly unviable for cost-sensitive consumers.

UN Reaffirms Freedom of Navigation in Strait of Hormuz Amid US Tariff Issue

The United Nations has reiterated its call for guaranteed freedom of navigation in the Strait of Hormuz following reports that the United States plans to impose a 20 per cent fee on vessels transiting the waterway. Secretary-General Antonio Guterres acknowledged the legal basis for a member state to levy tariffs on cargo but maintained his consistent position on open passage. The statement comes amid renewed hostilities between the US and Iran.

Trump Claims Iran's Supreme Leader Mojtaba Khamenei '90% Gone'

US President Donald Trump has asserted that Iran's Supreme Leader Mojtaba Khamenei is '90% gone' and that the country's military capabilities have been decimated. Trump made the remarks during a Fox News interview, also mistakenly referring to the late Ayatollah Ali Khamenei as 'Khomeini'. Mojtaba Khamenei, who has not been seen publicly since assuming power in March, recently vowed revenge for his father's death in a US-Israeli attack.

North Jakarta Environment Agency Sanctions Driver for Siphoning Operational Fuel

The North Jakarta Environment Agency has imposed strict sanctions on a garbage truck driver caught stealing subsidised operational fuel in Cilincing. Following a viral video, an investigation confirmed the driver siphoned off diesel, leading to a formal warning and a demand for compensation paid to the regional treasury. The agency has pledged to tighten oversight of its fleet to ensure public service assets are used transparently and accountably.

Economists: Competitiveness key to growth of Indonesian palm oil product exports

Economists argue that innovation-driven competitiveness is crucial for the sustainable growth of Indonesia's palm oil derivative exports amid tightening global trade standards. They stress the need to shift from intermediate products to high-value downstream goods and to integrate smallholders into the value chain. The government is bolstering sustainability certifications like ISPO and improving trade facilitation to maintain market access and a significant trade surplus.

Govt committed to reviving cooperatives as economic pillar

The Indonesian government has reaffirmed its commitment to revitalising cooperatives as a cornerstone of the people's economy, aligning with the 79th National Cooperative Day. Deputy Minister Farida Farichah emphasised that modernising the cooperative movement is a strategic step to implement the constitutional mandate for a collectively organised economy. The initiative includes the Red and White Village Cooperatives programme, with over 83,000 cooperatives established to strengthen the village economy and serve as distribution hubs for government subsidies.

Human Rights Ministry Finalises Recommendations for 10 Regulations to Strengthen Rights-Based Perspective

Indonesia's Ministry of Human Rights is finalising its analysis and recommendations for ten key pieces of legislation to ensure they incorporate a human rights perspective. The ministry argues that policies failing to accommodate human rights often trigger public dissatisfaction and protests. The evaluated laws cover critical areas including employment, education, elections, the Job Creation Law, and personal data protection.

Pegadaian Wins Top Company in Bullion Bank Industry 2026, Supports Government's Vision

State-owned pawnbroker PT Pegadaian has been recognised as the top company in the bullion bank industry at the Indonesia Top Companies Recognition 2026 awards. The accolade acknowledges Pegadaian's pioneering role in establishing Indonesia's first gold banking ecosystem, following its official business licence from the OJK in late 2024. The company aims to expand financial inclusion by transforming gold assets into productive and liquid financial instruments.

BP3MI West Java Strengthens Prevention of Illegal Migrant Worker Departures

The West Java Migrant Worker Protection Service Centre (BP3MI) is intensifying efforts to curb illegal migrant worker departures, focusing on village-level outreach and mapping. Cianjur Regency has been identified as the third-largest source of non-procedural migrant workers in the province, primarily bound for the Middle East. The initiative involves collaboration with local government and law enforcement to detect and counsel potential victims before they leave.

House Leadership Unanimously Confirms Asset Forfeiture Bill in Progress, Set for 2026 Priority Legislation

The leadership of Indonesia's House of Representatives (DPR) has firmly denied circulating rumours that Commission III is refusing to deliberate the Asset Forfeiture Bill. They confirmed the bill is actively being drafted and is scheduled for inclusion in the 2026 Priority National Legislation Programme. The House is currently gathering public input from legal experts, academics, and civil society to ensure meaningful participation in the legislative process.