Indonesian Political, Business & Finance News

Archive: 30 July 2026

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bank bjb Posts Stellar Performance, Profit Soars 58.8% and Assets Reach Rp228.2 T

Bank bjb reported a robust financial performance for the first half of 2026, with consolidated net profit surging 58.8% year-on-year to Rp783 billion. The bank's total consolidated assets reached Rp228.2 trillion, supported by a healthy credit portfolio and a strong focus on consumer lending. The lender is optimistic about sustaining growth through digital transformation and strategic partnerships with regional governments.

Anwar says Myanmar agrees to take 5,000 Rohingya refugees from Malaysia

Malaysian Prime Minister Anwar Ibrahim announced that Myanmar has agreed to accept 5,000 Rohingya refugees currently residing in Malaysia, citing good bilateral relations. The statement comes amid rising local tensions and a recent government call for the UNHCR to review its refugee registration operations. Malaysia hosts around 126,000 UNHCR-registered Rohingya, but does not recognise them as refugees under its domestic laws.

Malinau Regency Transforms Waste into a Sustainable Economic Resource

The Malinau Regency government in North Kalimantan is converting waste into a sustainable economic asset through community-based bank sampah (waste banks). Supported by robust regulations and private sector collaboration, the initiative has seen the establishment of multiple waste banks that turn plastic into cash and organic waste into compost. The programme has successfully boosted local incomes, with some participants earning more than civil servants, while also garnering provincial awards for community environmental efforts.

Houthi Plan to Impose Red Sea Passage Fees Threatens Global Oil Prices

Yemen's Houthi group is considering imposing tariffs on commercial vessels transiting the Bab el-Mandeb Strait, raising fresh concerns over global energy supply chains. The move, which follows a maritime blockade against Saudi Arabia, could significantly disrupt oil and LNG shipments and drive up prices. Reports suggest China may be exempt from the fees, while Iran is allegedly assisting the Houthis in establishing a collection authority.

BAZNAS Channels Alfamart Consumer Spare Change into Bridge Construction in Sukabumi

Indonesia's National Alms Agency (BAZNAS) has transformed small-change donations from Alfamart customers into a Rp 300 million permanent bridge in Sukabumi, West Java. The infrastructure, inaugurated on 29 July 2026, reconnects two villages and benefits over 500 families. Officials highlighted the project as proof that professionally managed micro-donations can deliver significant, long-term public benefits.

Maluku Strengthens Local Transmigration Programme to Build New Economic Centres

The Maluku provincial government is reinforcing its local transmigration programme and supporting the Patriot Expedition initiative to establish new economic hubs and accelerate poverty reduction. The approach is being tailored to the archipelagic region's characteristics, focusing on agricultural development and population distribution. There are also plans to integrate the programme with the development of the area surrounding the Masela Block national strategic project to create farming and logistics centres.

Riau Police Chief Absorbs Aspirations of Remote Residents in Indragiri Hilir through 'Ekspedisi Merah Putih'

Riau Regional Police Chief Inspector General Herry Heryawan visited the remote coastal sub-district of Concong in Indragiri Hilir to engage with local communities and deliver aid. The initiative, part of the 'Ekspedisi Merah Putih Presisi' programme, employed a 'Green Policing' approach that integrates security, public welfare, and environmental conservation. Activities included planting mangrove seedlings, distributing school supplies, and providing economic stimulus such as outboard motors to local fishermen.

Pramono Optimises 31 TPS 3R, Prepares 40 Hectares of Land in Ciangir for Organic Waste Management

The Jakarta provincial government will focus on optimising 31 existing Reduce-Reuse-Recycle waste processing sites (TPS 3R) rather than building new ones until the end of 2026. Governor Pramono Anung aims to transform these facilities into comprehensive sorting and processing centres to significantly reduce reliance on the Bantargebang landfill. The administration has also acquired 40 hectares of land in Ciangir, Banten, specifically for organic waste management as part of a broader waste ecosystem.

Prabowo highlights tourism's role in driving Indonesia's economic growth

President Prabowo Subianto emphasised the strategic importance of the tourism sector for Indonesia's economy, citing its multiplier effect on local livelihoods from coffee farmers to hospitality workers. He urged regional governments to maintain cleanliness and preserve cultural heritage, noting that historic sites and revitalised infrastructure like Semarang Tawang Station can serve as major tourist attractions. The president's remarks align with broader government efforts to boost foreign exchange earnings and promote Indonesia as a world-class destination.

Prabowo Greets Attorney General and Police Chief Simultaneously: Always Close Together

President Prabowo Subianto created a light-hearted moment during a mass housing contract event in Batang, Central Java, by noting the close proximity of the Attorney General and the National Police Chief. The President greeted the two top law enforcement officials together, remarking that they were 'always close together'. The event was held to mark the distribution of subsidised mortgages under the FLPP scheme.

World Day Against Trafficking in Persons 2026: IOM Highlights Real Threat of Online Scams in Southeast Asia

The International Organization for Migration (IOM) has used the 2026 World Day Against Trafficking in Persons to spotlight the severe threat posed by online scam centres in Southeast Asia. These compounds, primarily in Myanmar, Cambodia, and Laos, are estimated to hold up to 300,000 people forced to conduct cyber fraud, often targeting the elderly in Western nations. The IOM and UN describe the situation as a humanitarian crisis requiring cross-border cooperation, as victims are typically lured by fake job advertisements before being subjected to forced labour and human rights abuses.

TEP to bolster local top commodities in transmigration areas: Ministry

Indonesia's Ministry of Transmigration is launching the 2026 Patriot Expedition Team (TEP) programme to strengthen the value chain of key commodities in transmigration areas. The initiative aims to boost productivity and incomes by improving cultivation, post-harvest processing, and market access for products like coffee, cocoa, and durian. Research suggests integrated development could add up to Rp120 trillion in annual export value and significantly increase regional economic productivity.

Home Affairs Minister reveals regional head salary regulations to be revised

Minister of Home Affairs Tito Karnavian has announced plans to revise the 25-year-old government regulation governing the financial rights of regional heads. The reformulation aims to create a more proportional and fair system linked to performance and locally generated revenue, with the goal of encouraging innovation and minimising corruption.

OJK completes investigation into 17 market manipulation cases

Indonesia's Financial Services Authority (OJK) has concluded its investigation into 17 cases of market manipulation as part of an accelerated integrity reform plan. A further five cases remain under active investigation and ten are in the final stages of resolution. The completed cases will now proceed to the administrative sanction phase under the newly enacted Financial Sector Development and Strengthening Law.

Attorney General's Office Urged to Prove Predicate Crime in Febrie Adriansyah's Money Laundering Case

The legal team for former junior attorney general for special crimes Febrie Adriansyah has challenged prosecutors to prove the underlying criminal offence that generated the assets in his money laundering case. The defence insists that the seizure of 74 kilograms of gold and Rp476 billion must be linked to a clear predicate crime, rather than relying solely on the suspect's statements. The Attorney General's Office is currently investigating Adriansyah for money laundering, with the case linked to several other high-profile corruption investigations.

Home Affairs Minister Says Regional Head Remuneration Needs Revision, Must Be Based on Performance and PAD

Home Affairs Minister Tito Karnavian has called for a revision of Government Regulation No. 109 of 2000 concerning the financial rights of regional heads, deeming it outdated due to inflation and currency fluctuations. The proposed adjustment would tie operational support costs directly to performance indicators and increases in locally generated revenue (PAD). A cross-ministerial team will be formed to formulate the new scheme, which aims to incentivise regional heads to boost revenue without burdening the public.

Depok Faces Drought, Residents Queue with Jugs for Clean Water

Residents in Depok, West Java, are grappling with a severe water crisis as wells run dry nearly a month into the dry season. The Indonesian Red Cross (PMI) has begun distributing clean water to hundreds of affected people in densely populated areas. Authorities plan to continue emergency supplies periodically until groundwater levels stabilise.

Pegadaian and Manpower Ministry Forge New Collective Labour Agreement for Conducive Work Climate

PT Pegadaian (Persero) has received official approval from the Ministry of Manpower for its new Collective Labour Agreement (PKB) for the 2026-2028 period. The agreement, signed in Jakarta, aims to establish a harmonious and equitable industrial relations framework while providing legal certainty for employees' rights and obligations. Pegadaian's management emphasised that this strategic partnership is designed to boost corporate productivity and support the state-owned enterprise's contribution to the national economy.

Prabowo Claims Asbestos and Zinc Roofs Cause Lung Cancer in Young People

President Prabowo Subianto has claimed that many young Indonesians are developing lung cancer due to chemical exposure from asbestos and zinc roofing. He urged a nationwide effort to replace these materials with traditional alternatives like clay tiles or thatch. The president also set a one-year target to resolve Indonesia's waste management issues and called for extensive tree planting.

Efforts to Reduce Jakarta's Waste Pile Through Menteng Atas TPS3R

The Menteng Atas Reduce, Reuse, Recycle Waste Processing Site (TPS3R) in Jakarta is being optimised to handle up to 100 tonnes of waste daily. The facility is a key part of the Jakarta Provincial Government's strategy to lessen the burden on the Bantargebang final disposal site. Currently, 31 such facilities exist across the capital, though not all are operating at full capacity.

Home Affairs Ministry Equips Public Relations Officers with Effective Communication Strategies for the Digital Era

The Ministry of Home Affairs (Kemendagri) is enhancing the capacity of its public relations officers to develop effective communication strategies in response to the rapidly evolving digital landscape. A technical guidance session highlighted the critical role of government PR in countering disinformation and building public understanding of policies. Officials stressed that communication must be fast, accurate, and responsible to maintain public trust amidst Indonesia's 230 million internet users.

PSI Likens Jokowi's Bond with NTT People to the 'Elephant Tusk' Philosophy

The Indonesian Solidarity Party (PSI) has described the relationship between former President Joko Widodo and the people of East Nusa Tenggara (NTT) as embodying the 'elephant tusk' philosophy, a symbol of honour and commitment in local tradition. PSI executive Ahmad Ali stated that Jokowi's planned visit to the region serves to maintain emotional bonds and political trust, highlighting his administration's infrastructure legacy. The party urged the public to separate political differences from assessments of regional development achievements.

New Malang Police Chief Visits Court and Prosecutor's Office on First Day to Strengthen Law Enforcement Synergy

AKBP Rulian Syauri, on his first day as Malang Police Chief, visited the Kepanjen District Court and the Malang District Prosecutor's Office to introduce himself and build inter-agency communication. The courtesy calls aimed to reinforce coordination among law enforcement bodies to ensure optimal legal processes and maintain public order. He emphasised that strong synergy between the police, courts, and prosecutors is key to a safe and conducive security situation in the Malang jurisdiction.

Indonesia pivots digital strategy to drive economic growth

Communication and Digital Affairs Minister Meutya Hafid has announced a shift in Indonesia's digital strategy, moving from mere network expansion to fostering meaningful economic growth. The new Digital Infrastructure Roadmap 2026–2030 focuses on building an integrated ecosystem through cloud computing, enhanced cybersecurity, and expanded broadband access.

Pegadaian Receives 2026-2028 Collective Labour Agreement Decree from Manpower Ministry, Strengthening Industrial Relations Foundation

PT Pegadaian has officially received the decree for its 2026-2028 Collective Labour Agreement from the Ministry of Manpower. The agreement, signed by management and the workers' union, aims to establish a conducive and fair working environment. It provides legal certainty, strengthens industrial relations, and aims to boost corporate productivity for the next three years.

KPK Denies Targeting Regents in Surge of Sting Operations

The Corruption Eradication Commission (KPK) has addressed the recent surge in sting operations that have ensnared a dozen regional heads, stating it does not target specific individuals. The anti-graft body emphasised that its actions are based on public complaints and the sufficiency of evidence, rather than a deliberate focus on regents. The KPK also clarified that the absence of arrests at the gubernatorial or ministerial level is due to a lack of sufficient preliminary evidence, not a form of protection.

Zulhas Inspects Salt Industry Centre in Rote Ndao, Targets Self-Sufficiency and Import Reduction

Coordinating Minister for Food Zulkifli Hasan inspected the development of the National Salt Industry Centre (KSIGN) in Rote Ndao, East Nusa Tenggara, aiming to achieve salt self-sufficiency and reduce imports. The project, spanning an initial 751 hectares with plans for expansion, is designed to modernise production and boost the local economy. The government expects production to commence by September, with the facility projected to yield up to 200 tonnes per hectare annually at high quality.

Getting to Know Hendra Arifin, HokBen Founder Who Left Engineering Career, a Decision Once Opposed by His Family

Hendra Arifin left a stable 13-year engineering career at Astra International to pioneer affordable Japanese-style fast food in Indonesia, a move initially opposed by his family. Observing that simple Japanese meals were overpriced for the local market, he travelled to Japan to study the bento business model firsthand. His venture eventually grew into HokBen, one of the country's most enduring local fast-food chains.

Constitutional Court Orders Free Nutritious Meal Programme Budget Removed from Education Spending

Indonesia's Constitutional Court has ruled that the Free Nutritious Meal (MBG) programme must be removed from the national education budget, citing legal uncertainty and a violation of mandatory education spending requirements. The court has given the government and parliament until the 2028 state budget to separate the programme's funding from the education allocation. The ruling found that including the meal scheme under operational education costs had improperly expanded the definition of education expenditure.

Pramono Seeks Parliament's Help for Jakarta's Revenue-Sharing Funds, HNW Points to 'Toll Road' to DPR Speaker

Jakarta Governor Pramono Anung has requested support from the city's national parliamentarians to expedite the disbursement of revenue-sharing funds (DBH) from the central government. In response, House of Representatives (DPR) Deputy Speaker Hidayat Nur Wahid noted that Pramono, as a senior PDI-P politician, already has a direct 'toll road' to DPR Speaker Puan Maharani. The Jakarta administration is facing a significant shortfall, with DBH disbursements currently at only 23 percent of the budget ceiling, leading to a Rp15 trillion cut in the 2026 regional budget.

Prabowo Teases Destry and Hints at BI Governor Candidate

President Prabowo Subianto made light-hearted remarks about Bank Indonesia's acting governor Destry Damayanti during a housing finance event in Central Java, playfully suggesting her suitability for the permanent role. His comments come amid the ongoing search for a definitive central bank chief following Perry Warjiyo's resignation. The president also stressed the importance of unity and cooperation between state-owned banks and the central bank to achieve national goals.

West Lombok DPRD Slams NTB Provincial Government Over Near-Collapse Schools Left Unrepaired

The West Lombok Regional House of Representatives (DPRD) has criticised the Nusa Tenggara Barat (NTB) provincial government for its slow response in repairing severely damaged high schools. Hundreds of students are forced to study in emergency locations such as canteens and lobbies after classrooms were sealed off due to safety concerns. A local councillor has demanded immediate action and even suggested that management of the schools be returned to the district authority if the province cannot cope.

Drought Spreads, 20 Villages in Tangerang Regency Face Clean Water Crisis

An extreme dry season has triggered a clean water crisis across 20 villages in Tangerang Regency, Banten, forcing residents to rely on aid for daily needs. The Indonesian Red Cross (PMI) has distributed nearly 200,000 litres of water so far, as local wells have dried up. Authorities warn that more than 20 sub-districts are at risk of drought and have urged residents to conserve water.

Pramono Instructs Education Agency to Expedite Completion of SDN Cipete 01 Building

Jakarta Governor Pramono Anung has ordered the immediate completion of the SDN Cipete Utara 01 school building, which has been stalled for nearly a year. The provincial government is now prioritising the school's construction and has scrapped plans for a mixed-use high-rise on the site. The project is now targeted for completion by September 2026.

DPR Urges Government to Reformulate Regional Heads' Salaries to Curb Corruption

The Indonesian House of Representatives (DPR) is urging the government to revise the salary and benefits structure for regional heads, arguing that the current regulations are 26 years old and no longer reflect the complexity of their duties. The proposed reformulation aims to be performance-based, offering rewards for good governance and sanctions for underperformance. This initiative is seen as a strategic step to minimise potential abuse of power and corruption at the regional level.

Industry Minister: Industrial Estate Bill to Cut Investment Barriers

Indonesia's Industry Minister Agus Gumiwang Kartasasmita announced that a new Industrial Estate Bill aims to strengthen industrial zones and accelerate investment by removing bureaucratic hurdles. The bill, currently under discussion with the House of Representatives, seeks to transform industrial estates from mere land managers into comprehensive ecosystem providers. Industry players have highlighted the need for synchronised licensing between central and regional governments to boost competitiveness against regional neighbours like Vietnam and Malaysia.

BI Launches SINDANG PRIATIM, Integrating Food Data and AI to Curb Inflation

Bank Indonesia's Tasikmalaya office, in collaboration with local governments in East Priangan, has launched an enhanced data platform called SINDANG PRIATIM. The system integrates regional food price and supply data with an AI-powered early warning system to support more precise inflation control policies. The platform aims to improve coordination among regional inflation control teams by providing real-time data on commodity balances, price movements, and market operations.

Home Affairs Minister Tito Admits Reporting Surge in Regional Heads Caught in Sting Operations to Prabowo

Home Affairs Minister Tito Karnavian has confirmed he reported the increasing number of regional heads ensnared in Corruption Eradication Commission (KPK) sting operations to President Prabowo Subianto. The latest operation saw the arrest of Pemalang Regent Anom Widiyantoro, marking the 18th sting operation this year and bringing the total number of regional heads caught to 12. Minister Tito stated that President Prabowo consistently supports anti-corruption efforts and has repeatedly warned regional leaders against engaging in corrupt practices.

Govt to prioritize EV incentives for national automotive brands

The Indonesian government plans to prioritize electric vehicle incentives for national automotive brands as part of a broader industrialization strategy. The policy, still lacking detailed criteria, is linked to a national car project that includes developing a 412-hectare industrial zone in Subang and may involve sovereign wealth fund Danantara. While the national car plan is in early stages, the electric motorcycle program has already distributed 3,000 units under state defense firm PT LEN.

Ministry of Forestry Names Two Suspects in Bukit Barisan Selatan National Park Encroachment, Excavator Seized

Indonesia's Ministry of Forestry has named two suspects for illegally clearing a road inside the Bukit Barisan Selatan National Park in Lampung Barat. The suspects, a 64-year-old equipment owner and a 26-year-old excavator operator, were apprehended during a forest security operation. Officials warn that such illegal access routes pose a serious threat, potentially triggering further deforestation, poaching, and other environmental crimes in the conservation area.

Strengthening Ecosystems and Investment Certainty in Cities - APEKSI

The Association of Indonesian City Governments (APEKSI) has stressed that cities must build holistic ecosystems to provide investment certainty, moving beyond merely attracting capital. Executive Director Alwis Rustam highlighted that factors such as regulatory consistency, quality of life, and digital governance are now critical for investor confidence. He urged all Indonesian cities to identify their unique economic strengths and 'level up' to drive national growth.

Jatiluhur Dam CCTV Blind Spot Exposed After Security Guard's Death

Perum Jasa Tirta II has admitted that the location where security guard Sumarna was fatally attacked was a blind spot, situated two kilometres from the nearest of the 27 CCTV cameras monitoring the Jatiluhur Dam. The company plans to review and expand its surveillance coverage in coordination with police. The victim's family has received over Rp 418 million in compensation and educational scholarships.

BMKG Urges Energy Ministry and PLN to Anticipate Electricity Surge During El Niño

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has called on energy authorities to prepare for a potential spike in electricity demand as the El Niño phenomenon intensifies the dry season. The agency warns that rising temperatures will drive up air conditioning use, straining the national grid, while simultaneously threatening hydropower output due to depleted water reserves. Precise water management at dams is deemed critical to maintaining a stable power supply.

Indonesia Seeks to Enhance Digital Partnership with Switzerland

Indonesia has expressed a strong desire to deepen its digital partnership with Switzerland, building on over seven decades of bilateral relations. The call was made by the Indonesian Minister of Communication and Digital Affairs during Switzerland's National Day celebration, highlighting opportunities for innovation and digital diplomacy. The minister also acknowledged Switzerland's strategic role as a host for key multilateral forums in the telecommunications and digital sectors.

UI Faculty of Medicine reveals collagen's potential to accelerate diabetic wound healing

Researchers from the University of Indonesia's Faculty of Medicine have found that collagen supplementation can significantly accelerate the healing of diabetic foot ulcers. A study involving 69 patients showed that daily intake of 10 grams of hydrolysed collagen over 21 days improved wound healing and increased albumin levels. The findings suggest collagen could be developed as an affordable adjunct therapy for diabetes patients.

DKI Jakarta Prepares Land in Banten for Organic Waste Processing

The Jakarta provincial government has acquired a 40-hectare plot in Banten to process organic waste as part of a broader strategy to reduce the burden on the Bantargebang landfill. The initiative is a key component of a roadmap developed with the Ministry of Environment to transition away from open dumping practices. The plan targets a significant reduction in open dumping at Bantargebang by the end of 2026, alongside increased controlled landfill operations and waste processing.

China's top leaders set to hold October meeting on internal governance, pledge measures to support economy

China's ruling Communist Party will convene its Central Committee in October to address internal party governance amid what the Politburo described as 'difficulties and challenges facing the economy'. The meeting, which typically focuses on the five-year strategic blueprint, has been rescheduled following a delayed third plenum last year. The leadership also pledged to accelerate fiscal spending and introduce incremental policies to bolster economic growth in the second half of the year.

Home Affairs Minister Urges Political Parties to Strengthen Training to Curb Regional Head Corruption

Minister of Home Affairs Tito Karnavian has called on political parties to enhance technical guidance and party education for prospective regional head candidates to prevent corruption. He proposed mandatory pre-nomination training on bureaucracy and financial management, alongside periodic refresher courses for elected officials. The initiative aims to equip leaders with the knowledge to avoid being manipulated by subordinates and to manage regional budgets accountably.

Prabowo Again Reminds Regional Heads: Do Not Mobilise the Public to Welcome Me

President Prabowo Subianto has reiterated his request for regional leaders not to mobilise crowds during his official visits, expressing concern for citizens forced to wait in the heat. Speaking at a housing finance event in Batang, Central Java, he acknowledged the warmth of the people but stressed that effective government service is more important than ceremonial welcomes.

Indonesia pivots digital strategy to drive economic growth

Indonesia is shifting its digital development focus from simply expanding network coverage to ensuring connectivity delivers tangible economic and social benefits. The new Digital Infrastructure Roadmap 2026–2030, launched by Bappenas, prioritises an integrated ecosystem of cloud computing, fibre optics, and submarine cables to boost productivity and digital sovereignty. The strategy aims to align internet access with the nation's long-term vision of Indonesia Emas 2045, while also strengthening cybersecurity and data protection.