Indonesian Political, Business & Finance News

Archive: 29 July 2026

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Thick Envelopes from Cargo Firm to Customs Official Make Prosecutor Exclaim 'Wow'

A senior intelligence official at Indonesia's Directorate General of Customs and Excise admitted in court to receiving thick envelopes of cash from a cargo company on four separate occasions. The prosecutor expressed astonishment at the admission and questioned the logic behind the official's claim that he felt 'uncomfortable' yet only refused the fifth payment. The case is part of a larger bribery and gratuity scandal involving customs officers and PT Blueray Cargo, with total illicit payments allegedly reaching Rp 78.8 billion.

List of Regional Heads Caught in 2026 Sting Operations, Anom Widiyantoro Becomes Latest Regent Arrested by KPK

The Corruption Eradication Commission (KPK) has arrested Pemalang Regent Anom Widiyantoro, marking the 18th sting operation this year and bringing the total number of regional heads caught to 12. The arrest is particularly striking as it occurred just over a year after Anom publicly committed to anti-corruption reforms during a KPK coordination meeting. The KPK continues to target graft involving regional leaders, with previous arrests including the Mayor of Madiun.

Business World Responds to Danantara's Inclusion in KSSK

The Indonesian Employers' Association (Apindo) has responded to plans to involve the Danantara Investment Management Agency in the Financial System Stability Committee (KSSK). Apindo's policy analyst suggests that while Danantara's large bond issuances could impact the financial system, the Coordinating Ministry for Economic Affairs would be a more appropriate participant to ensure alignment between financing and real sector readiness. The government has clarified that Danantara will act as an advisor without voting rights in KSSK meetings.

Creative Economy Ministry and MPA Push for Copyright Law Revision to Curb Digital Piracy

Indonesia's Ministry of Creative Economy and the Motion Picture Association are collaborating to strengthen the revision of the Copyright Law to combat digital piracy and provide legal certainty for investors. The initiative aims to protect the rapidly growing film, animation, and video subsector, which expanded by 17.59 per cent. The revised law is expected to address modern challenges such as piracy on video-on-demand platforms and the unauthorised use of creative works by artificial intelligence.

1,700 Free Nutritious Meal Trays Stolen at Ciputat SPPG, Perpetrator Turns Out to Be the Security Guard

Police have uncovered the theft of 1,700 'ompreng' trays intended for the Free Nutritious Meal (MBG) programme at a Nutrition Service Unit (SPPG) in Ciputat, South Tangerang. The primary suspect is a security guard employed at the facility, who conspired with three accomplices to steal the trays and other equipment. The incident highlights security vulnerabilities within the government's flagship social welfare initiative.

Asian Markets Rebound, Kospi and Nikkei Trade in Positive Territory

Asia-Pacific stock markets opened higher on Wednesday as investors awaited the Federal Reserve's interest rate decision. South Korea's Kospi led gains with a 1.95% surge, while Japanese and Australian indices also advanced. Market sentiment was also influenced by rising geopolitical tensions in the Middle East and a mixed batch of corporate earnings reports.

Kumamoto Earthquake: Kyushu Shinkansen Services Halted After M7.1 Tremor

A magnitude 7.1 earthquake struck Kumamoto Prefecture in southwestern Japan, leading to the suspension of Kyushu Shinkansen bullet train services. The tremor, which registered the highest intensity on Japan's seismic scale, also caused an explosion at a shopping centre, resulting in two confirmed deaths and a search for missing persons. Transport networks across the prefecture have been disrupted, with authorities warning of potential further suspensions if strong aftershocks occur.

Indonesia Strengthens Sustainable Forest Leadership at ASEAN Forum

Indonesia has reaffirmed its commitment to leading sustainable forest management in the region at the 21st ASEAN Working Group on Forest Management in Siem Reap, Cambodia. The nation highlighted its progress in digital monitoring, social forestry programmes, and new carbon trading regulations. The government aims to balance economic growth with environmental conservation through enhanced regional collaboration.

Government to Trial Social Assistance Distribution via KDMP in 900 Locations

The Indonesian government will pilot the distribution of social assistance through the Koperasi Desa Merah Putih (KDMP) in 900 locations. Social Affairs Minister Saifullah Yusuf stated the trial aims to bring aid access closer to village-level beneficiaries, with bank agents facilitating the disbursement. The initiative is part of a broader plan to integrate KDMP as a central hub for government services and economic activity in villages.

Prabowo Attends Swearing-In of IPDN's 33rd Cohort of Young Civil Servants

President Prabowo Subianto presided over the inauguration of the 33rd cohort of Young Civil Servants (Pamong Praja Muda) at the Institute of Home Affairs Governance (IPDN) in Sumedang, West Java. The ceremony marked the symbolic commissioning of 1,404 graduates, including doctoral and applied master's degree holders, into the nation's civil service corps. The event was attended by key cabinet ministers, the military and police leadership, and the Governor of West Java.

Foreign Investors Snap Up These 10 Stocks Amid IHSG Downturn

The Indonesian Composite Index (IHSG) fell 0.89% to 6,130.59 on Tuesday, with foreign investors recording a net sell of Rp 1.07 trillion across all markets. Despite the overall selling pressure, foreign funds selectively accumulated shares in several companies, including PT Timah Tbk and PT Barito Pacific Tbk. The buying activity suggests targeted confidence in specific sectors even as the broader market corrected.

Yesterday's highlights: child protection and character-building through literature

The Ministry of Social Affairs is providing psychosocial support for the child of a suspected chicken thief who died in a mob attack in Bali. Meanwhile, the Ministry of Education emphasises the role of literature in shaping students' character and literacy.

DBS Eyes Opportunities from AI and Energy Investment Surge

DBS Bank sees a new global capital expenditure cycle driven by artificial intelligence and energy, with hyperscaler spending outstripping computing supply. The bank highlights investment opportunities across traditional and renewable energy infrastructure, while cautioning that massive AI investments and geopolitical tensions could fuel near-term inflation.

Mataram City Government to Disburse 13th-Month Salary for Part-Time PPPK This Week

The Mataram City Government is set to disburse the 13th-month salary to thousands of part-time Government Employees with Work Agreements (PPPK) this week. Each eligible employee will receive approximately Rp 1 million, with the amount calculated based on their appointment start date. The payment follows Government Regulation No. 9 of 2026, which extends the benefit to part-time PPPK alongside civil servants and full-time PPPK.

Good News! Subsidised Fuel and LPG Prices Confirmed Not to Rise

The Indonesian government has confirmed that prices for subsidised fuels, including Pertalite and diesel, as well as 3 kg LPG canisters, will not increase. This decision stands despite ongoing geopolitical tensions in the Middle East causing fluctuations in global crude oil prices. The Energy Minister also assured that national fuel and crude oil stocks remain secure and above minimum standards.

WIFI Subsidiary Officially Issues IDR 2.4 Trillion Samurai Bonds

PT Integrasi Jaringan Ekosistem, a subsidiary of PT Solusi Sinergi Digital Tbk (WIFI), has successfully raised JPY 21.4 billion through a Samurai bond issuance on the Japanese capital market. The bonds, rated BBB+ by JCR, were issued in two series with tenors of three and five years. The proceeds will primarily fund the expansion of the company's fibre-to-the-home network and other corporate needs.

Indonesia Urges ASEAN to Strengthen Mangrove Conservation Collaboration

Indonesia has called for enhanced regional cooperation on sustainable mangrove management in Southeast Asia through the establishment of a World Mangrove Center. The initiative was presented at the 21st ASEAN Working Group on Forest Management in Siem Reap, Cambodia, highlighting the ecosystem's critical role in climate mitigation and coastal protection. Indonesia also reaffirmed its support for the ASEAN Mangrove Network and the next phase of its implementation strategy.

BCA's Lending Surpasses IDR 1,000 Trillion for the First Time in First Half of 2026

PT Bank Central Asia Tbk (BCA) has reported a historic milestone, with its loan portfolio exceeding IDR 1,000 trillion for the first time, reaching IDR 1,036 trillion in the first half of 2026. The 8% annual growth was driven by productive lending, particularly in the corporate and commercial sectors, while the bank maintained a cautious approach amid rising interest rates. BCA also reported a significant increase in sustainable financing, including an 82% surge in renewable energy loans.

Selling on Facebook Gets Tougher, Check the New Requirements

Meta is introducing a free identity verification system called Facebook Verified, requiring users to submit a video selfie to prove their authenticity. The measure aims to combat AI-generated fake profiles and will be prominently displayed on Marketplace, Dating, and Groups. The company is also launching a dedicated 'Seller' app to help merchants manage their listings on the platform.

US Sidelined as Iran, Saudi Arabia, and Oman Discuss Future of Strait of Hormuz

Iran has initiated separate diplomatic talks with Saudi Arabia and Oman regarding the future governance of the Strait of Hormuz, notably excluding the United States from the negotiations. The discussions aim to bolster regional stability and address security concerns in the vital oil shipping lane, with Oman proposing a voluntary fee model for transiting vessels. The diplomatic overtures come amid a tentative easing of US-Iran tensions, though the broader security situation in the Middle East remains fragile.

Sobey Indigenous Community Strengthens Customary Territory Recognition

The Sobey indigenous community in Papua's Sarmi Regency is advancing efforts to secure legal recognition of their customary lands. A recent workshop brought together tribal leaders, local government, and academics to agree on external territorial boundaries. The process combines participatory mapping with oral histories to document the community's ancestral domain.

Foreign Investors Unload Blue Chip Shares as JCI Suffers Sharp Correction

The Jakarta Composite Index (JCI) extended its decline, falling 0.89% to 6,130.59, as foreign investors recorded a massive net sell of Rp1.07 trillion across all markets. Blue chip stocks bore the brunt of the exodus, with major banks and state-owned enterprises among the most heavily offloaded. The sell-off highlights persistent foreign caution towards Indonesian equities amid thin trading volumes.

Saudi Arabia and US Launch Joint Strikes on Iran-Backed Militias in Iraq

Saudi Arabia and the United States have conducted joint precision strikes against Iran-backed militia targets in eastern Iraq. The operation was a direct response to a series of failed drone attacks launched from Iraqi territory against Saudi oil facilities. US Central Command warned of further military action if the attacks, orchestrated by Iran's IRGC, do not cease.

DPR Commission III Chair Urges Transparent Probe into Sutrimo's Death, Highlights Foaming at Mouth

Habiburokhman, Chairman of Indonesia's House Commission III, has called for a transparent and thorough investigation into the mysterious death of Sutrimo outside a South Jakarta clinic. He specifically highlighted the victim's foaming mouth, suggesting it could indicate poisoning. Police are still investigating the cause of death and have conducted a second crime scene examination.

Deputy Governor Urges Perbati and Pertina to End Boxing Leadership Dispute in NTT

The Deputy Governor of East Nusa Tenggara (NTT), Johni Asadoma, has called for an end to the leadership dispute between the Indonesian Boxing Board (Perbati) and the Indonesian Amateur Boxing Association (Pertina) in the province. He stated that both organisations have their own parent bodies, with Perbati recognised by the Indonesian Olympic Committee (KOI) and Pertina by the National Sports Committee (KONI), and urged them to find common ground to develop boxing in the region. The dispute escalated after Pertina reported Perbati to the police over a championship event, while Perbati aims to secure three gold medals at the 2028 PON, which NTT will co-host.

AHY Pushes for National Water Security, Government Prepares Strategies for Extreme Weather

Coordinating Minister Agus Harimurti Yudhoyono (AHY) has emphasised the government's commitment to strengthening national water security to anticipate the impacts of El Niño coinciding with the dry season. Strategies include developing seawater desalination for island regions, purifying brackish water, and utilising risk mapping from BMKG and BNPB. The government aims to ensure preparedness not only for water shortages but also for potential forest and land fires.

The Secret of China's Man-Made Forests: Greening 66 Percent Faster

New research reveals that China's planted forests have increased their leaf area 65.8 percent faster than natural forests, driven by species selection and intensive management. However, the study clarifies that this advantage largely stems from the younger age of plantations, with the growth gap narrowing to just 4.6 percent when age is accounted for. The findings temper claims of superior ecological productivity, noting that natural forests offer greater long-term stability for carbon storage and biodiversity.

Minister of Culture Affirms Commitment to Preserving Hiliamaetaniha Traditional Village

Minister of Culture Fadli Zon has pledged government support for the preservation of Hiliamaetaniha Traditional Village in South Nias, highlighting the community's role in maintaining its cultural identity. The ministry will work through its regional office to identify necessary support, particularly to protect traditional houses from extreme weather and landslides. The visit underscores a broader commitment to safeguarding both tangible and intangible cultural heritage across Indonesia.

Purbaya says he will follow Prabowo's lead on next BI Governor

Finance Minister Purbaya Yudhi Sadewa has stated he will comply with President Prabowo Subianto's directives regarding his potential candidacy for Bank Indonesia governor, though no formal instructions have been received. The central bank's top post became vacant following the sudden resignation of Perry Warjiyo, with Senior Deputy Governor Destry Damayanti assuming the role in an acting capacity. The government is in the early stages of identifying a permanent successor, who must be submitted to the House of Representatives for confirmation.

Jakarta Provincial Government Strengthens Social Conflict Mitigation

The Jakarta Provincial Government, through its National Unity and Politics Agency, has reaffirmed its commitment to preventing social conflict by optimising collaborative programmes with community forums. The move comes as the regional parliament urges authorities to boost preventive measures following a recent brawl in Menteng, Central Jakarta. Officials stressed the need for integrated early detection and firm law enforcement to prevent minor disputes from escalating into broader sectarian issues.

Finance Minister Purbaya Awaits Prabowo's Directive on Additional Funds for 490 Regions

Finance Minister Purbaya Yudhi Sadewa stated that 490 regions may receive additional funds to cover civil servant salaries, pending President Prabowo's approval. This follows reports of regional governments struggling to pay employees due to budget shortfalls. Home Affairs Minister Tito Karnavian has outlined a tiered strategy, prioritising regional budget efficiency and the use of revenue-sharing funds before requesting central government assistance.

Delvis Rettob Elected Chairman of the PP PMKRI Presidium

Delvis Rettob of the Ambon branch has been unanimously elected as the Chairman of the Central Board Presidium of the Catholic Students Association of the Republic of Indonesia (PMKRI) for the 2026-2028 period. The election took place during the second round of voting at the Members' Consultative Assembly in Manggarai, East Nusa Tenggara, after the other candidate failed to attend. Rettob succeeds Susana Kandaimu and will serve as the sole formateur.

Economists Applaud BI's Decision to Hold Interest Rate

Bank Indonesia's decision to maintain the BI-Rate at 5.75% has been praised by economists as a positive step to support rupiah stability and economic growth. The central bank indicated that the cumulative 100 basis point hike earlier in 2026 is currently sufficient to manage inflation expectations amid persistent global uncertainties. However, economists caution that future policy will remain highly dependent on global and domestic developments, with the possibility of further tightening if conditions worsen.

Bank Capital's Lending Grows 41.4 Percent, Pension Segment Surges 322 Percent

PT Bank Capital Indonesia Tbk reported a 41.4 percent year-on-year increase in total lending to Rp11.1 trillion in 2025, driven by a 322 percent surge in its pension loan portfolio. The bank's strategic partnerships, including with state-owned PT Taspen, have bolstered its focus on pre-retirement and pensioner banking services. As a customer appreciation initiative, the bank is sending 50 pension segment customers on an umrah pilgrimage.

The Deed Longed for by the Dead, Drawing Closer to the Prophet in the Afterlife

An article explores the spiritual significance of prostration (sujud) in Islam, highlighting it as the highest form of submission to God. It recounts a hadith where the Prophet Muhammad offered a companion, Rabi'ah bin Ka'ab, anything he desired, leading to a profound request for companionship in Paradise. The narrative emphasises that increasing one's prostrations is a key to attaining closeness to the Prophet in the afterlife.

House Commission II and Home Affairs Ministry Push for Digitalisation of Social Protection in Malang City

Indonesia's House Commission II and the Ministry of Home Affairs are accelerating the digital transformation of social assistance distribution in Malang City. The initiative promotes the use of Digital Population Identity (IKD) to improve the accuracy of beneficiary data and eliminate misdirected aid. Officials emphasised that integrated population data serves as a single source of truth to ensure government-to-person payments are effective, transparent, and accountable.

Travel Agent and Boat Owner Compensate Families of Two Chinese Tourists Who Died in Labuan Bajo

A travel agent and a boat owner have agreed to pay compensation to the families of two Chinese tourists who drowned while snorkelling near Kelor Island, Labuan Bajo. The agreement was reached through mediation facilitated by the Water and Air Police Unit of the Manggarai Barat Police. The compensation covers hospital, repatriation, and cremation costs, with payments being made in instalments.

US Accuses Iran of Launching Surprise Missile Attack on Base in Jordan

The US military has reported that a number of missiles were launched in what it believes was a surprise attack targeting its forces in the Middle East, with a base in Jordan being the primary focus. The incident has caused oil prices to surge, with US crude futures jumping over 4% to surpass $82 a barrel, amid heightened regional tensions.

Attorney General's Office Reveals IDR 10.5 Trillion Annual Waste in Free Nutritious Meal Corruption Case

The Indonesian Attorney General's Office (Kejagung) has disclosed that alleged corruption in the management of the Free Nutritious Meal (MBG) programme has resulted in an estimated annual budget waste of IDR 10.5 trillion. The revelation was made during a pretrial hearing at the South Jakarta District Court, where the Kejagung requested the judge reject a motion filed by former National Nutrition Agency (BGN) deputy head Lodewyk Pusung. The prosecution maintains that the suspect's designation was procedurally sound and supported by sufficient evidence, including electronic communications.

Bisnis-27 Index Closes in the Red, Pressured by Declines in BRMS, BUMI & ANTM

The Bisnis-27 index ended Tuesday's trading session lower, dragged down by significant losses in energy and mining stocks. The decline was led by PT Bumi Resources Minerals Tbk, while gains in consumer and industrial shares helped limit the overall fall. Analysts attributed the negative sentiment to a weakening rupiah, falling crude oil prices, and domestic political uncertainty surrounding the appointment of a definitive Bank Indonesia Governor.

Iran Fires Ballistic Missiles at US Military Base in the Middle East

Iran's Islamic Revolutionary Guard Corps launched a salvo of ballistic missiles at a US military base in the Middle East, marking the first attack since a brief truce over the weekend. US Central Command confirmed all missiles were intercepted and no significant damage was reported. The renewed hostilities follow a series of US strikes on Iran and Iranian attacks on Washington's allies in the Gulf, with oil prices previously dipping during the pause in fighting.

Pemalang Regent Arrested by KPK Just One Month After Attending Anti-Corruption Meeting

The Corruption Eradication Commission (KPK) has arrested the Regent of Pemalang, Anom Widiyantoro, in a sting operation, just over a month after he attended a corruption prevention coordination meeting at the KPK's headquarters. The arrest highlights the persistent issue of corruption within regional governments, despite recent preventative efforts. This operation is the latest in a series of arrests by the KPK in 2026, which have targeted numerous regional heads and tax officials.

BGN Reform Claims to Return Hundreds of Billions of Rupiah to State Coffers

The Government Communication Body (Bakom) has announced that governance reforms at the National Nutrition Agency (BGN) have uncovered 414 problematic service units, leading to the recovery of hundreds of billions of rupiah. The irregularities included non-operational units that had already received budget disbursements or held duplicate virtual accounts. The reforms are part of a broader effort to strengthen the management of the Free Nutritious Meals programme under new leadership.

Apindo Urges Acceleration of Trade Agreement Implementation

The Indonesian Employers' Association (Apindo) is calling for the swift conclusion and implementation of key international trade pacts to expand market access and bolster export competitiveness. The business group warns that persistent policy uncertainty, high logistics costs, and global economic pressures are eroding industrial confidence. Apindo stresses that concrete policy action is needed to prevent mounting business pressures from triggering widespread layoffs.

'Bediding' Phenomenon Hits Java, Dieng Records Coldest Temperature

A cold spell known locally as 'bediding' is sweeping across Java, driven by the strengthening Australian monsoon. The phenomenon has caused temperatures to plummet, with Dieng Plateau recording a near-freezing 0.7 degrees Celsius. The Meteorology, Climatology, and Geophysics Agency (BMKG) attributes the sharp nighttime temperature drops to dry air and minimal cloud cover during the peak of the dry season.

Deputy Home Minister Addresses Threat of Regional Civil Servant Layoffs

Deputy Home Minister Bima Arya has urged regional heads not to take drastic measures such as laying off civil servants amid fiscal difficulties. The central government is currently mapping regions struggling to pay salaries, particularly for PPPK employees, following adjustments to the Regional Transfer Fund (TKD). Discussions are ongoing with the DPR and the Ministry of Finance to find a joint solution.

Korlantas Officially Operates Bodycams to Strengthen Transparency and Traffic Law Enforcement

The Indonesian National Police's Traffic Corps (Korlantas) has officially deployed body-worn cameras for its officers to enhance transparency and accountability in traffic law enforcement. The initiative aims to digitally document all interactions between officers and the public, providing objective evidence and deterring misconduct such as illegal levies. This move is part of a broader technological transformation within the police force, complementing the existing Electronic Traffic Law Enforcement (ETLE) system.

Ministry of Creative Economy and BRIN Strengthen Research-Based National Creative Economy

Indonesia's Ministry of Creative Economy and the National Research and Innovation Agency (BRIN) have signed a Memorandum of Understanding to bolster the creative economy through evidence-based policy. The collaboration focuses on research, intellectual property facilitation, and seed funding for priority subsectors. The partnership will also support flagship programmes and the upcoming 5th World Conference on Creative Economy in 2026.

Manpower Minister: Social dialogue key to resolving employment issues

Minister of Manpower Yassierli has emphasised that constructive social dialogue between the government, employers, and trade unions is fundamental to creating balanced labour policies. The National Tripartite Cooperation Institution (LKS Tripnas) for the 2023-2026 period has produced strategic recommendations, including measures to prevent mass layoffs and a review of outsourcing regulations. The forum has held 41 working body meetings and 20 plenary sessions to address Indonesia's evolving employment dynamics.

Central Java Police Investigate Deepfake Pornography Case Involving Seven Female Students

The Central Java Regional Police are investigating a case involving the creation and distribution of deepfake pornographic content targeting seven female university students in Semarang and Surakarta. One victim has filed a formal report, and investigators are currently gathering evidence and witness testimony. The perpetrator remains unidentified as the illicit material was sent anonymously via social media.