Indonesian Political, Business & Finance News

Archive: 30 July 2026

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Businesses Urge Government to Reopen Nickel, Tin Exports Amid Rare Earth Regulatory Uncertainty

Indonesian mining associations are pressing the government to lift a de facto export ban on mineral products caused by unclear regulations on rare earth element content. Industry leaders argue the lack of technical parameters and reporting mechanisms for these trace minerals has stranded shipments and inflicted significant financial losses. They also highlighted compounding pressures from geopolitical energy cost spikes and domestic royalty increases.

Prabowo Rides Indonesian-Made 'Orient Express' Train to Batang

President Prabowo Subianto travelled on the new Nusantara Explore luxury sleeper train from Semarang Tawang Station to Batang, Central Java. The journey preceded his attendance at a mass mortgage signing ceremony for 62,000 subsidised homes. The train, developed by state-owned railway company PT KAI, is designed to boost tourism with high-end amenities and culturally inspired interiors.

Parliamentary Press Corps Slams Lawmaker Deddy Sitorus for Allegedly Insulting Journalists

The Parliamentary Press Corps (KWP) has condemned lawmaker Deddy Sitorus for allegedly referring to journalists as a 'circus mob' during a public meeting at the House of Representatives. The KWP has demanded a public apology within 24 hours, failing which it will report the matter to the House Ethics Council and potentially the police. Sitorus has denied the accusation, claiming his remark was aimed at the disorderly situation in the room, not the journalists themselves.

PT PII: Legok Nangka PSEL Project a Model of Central-Regional Collaboration

PT Penjaminan Infrastruktur Indonesia (PII) has highlighted the Legok Nangka waste-to-energy project in West Java as a key example of collaboration between central and regional governments. The project, which held its groundbreaking ceremony recently, is expected to process over 2,100 tonnes of waste daily while generating renewable electricity. PII views its government guarantee as crucial for boosting investor confidence and ensuring the project's long-term viability under the public-private partnership scheme.

Ministry Warns of Increasingly Sophisticated Human Trafficking Modus Operandi Exploiting Digital Technology

The Ministry of Women's Empowerment and Child Protection has issued a warning about the evolving tactics of human trafficking, which now heavily exploit digital platforms. Perpetrators are using social media, messaging apps, and online job portals for recruitment, control, and even exploitation, making detection significantly more difficult.

Dasco to Study Survey Results: We Will Compare Them

Deputy Speaker Sufmi Dasco Ahmad says the government will study and compare recent public satisfaction surveys. He views the findings as input for evaluation, to be measured against actual conditions on the ground.

Indonesian Kindergarten Teachers' Union Meets Dasco, Requests PPPK Appointment

The Indonesian Kindergarten Teachers' Association (IGTKI-PGRI) met with House Deputy Speaker Sufmi Dasco Ahmad to advocate for the welfare of its 350,000 members. The union requested that the majority of private kindergarten teachers, who currently hold honorary status, be appointed as Government Employees with Work Agreements (PPPK). They also urged the government to expand competency improvement programmes and accelerate the deliberation of the National Education System Bill.

KPK Reveals Identities of 3 New Suspects in Pemalang Regent Case

The Corruption Eradication Commission (KPK) has named three additional suspects in an alleged extortion case involving the Regent of Pemalang, including a KPK administrative staff member. The suspects, identified as a private sector confidant of the regent, his father, and the KPK employee, were detained following the anti-graft body's 18th sting operation of 2026. The case involves two clusters: the regent's alleged extortion of Pemalang officials and an alleged extortion of the regent by a police officer assigned to the KPK.

Prabowo Tasks KAI Chief with Trans-Sumatra and Trans-Kalimantan Railway Projects

President Prabowo Subianto has directed state railway company PT KAI to undertake the massive Trans-Sumatra and Trans-Kalimantan railway projects. The directive was issued during the inauguration of the refurbished Semarang Tawang Station, where he also launched a new luxury tourism train. Prabowo urged KAI's leadership to think big and accelerate the development of the nation's railway network.

Temporary Pelican Crossing Installed on Jalan Kapten Tendean as Damaged Footbridge Awaits Rebuild

The Jakarta administration has installed a temporary pelican crossing on Jalan Kapten Tendean following the demolition of a severely damaged pedestrian bridge. The facility is intended to serve pedestrians until a replacement bridge, estimated to cost between IDR 5-6 billion, can be constructed. Authorities are exploring a floor area ratio compensation scheme to fund the new bridge without burdening the regional budget.

Fire destroys eight police housing units behind Jambi Regional Police Headquarters

A large fire razed eight units of a police housing complex behind the Jambi Regional Police Headquarters on Thursday. Strong winds caused the flames to spread rapidly through the permanent structures, though no fatalities have been reported. Authorities are currently investigating the cause of the blaze and assessing the material losses.

Police Officer on KPK Staff Named Suspect in Pemalang Regent Extortion Case

The Corruption Eradication Commission (KPK) has named one of its own administrative staff members, a seconded police officer, as a suspect in the alleged extortion of Pemalang Regent Anom Widiyantoro. The case, which stems from the KPK's 18th sting operation of 2026, has been divided into two main clusters by investigators. The anti-graft body has pledged to conduct a thorough internal review and implement corrective measures to prevent a recurrence.

Barantin Seeks Free Quarantine Services for MSMEs to Boost Exports

The Indonesian Quarantine Agency (Barantin) is pushing to waive quarantine service fees for micro, small, and medium enterprises (MSMEs) to broaden their access to export markets. The initiative aims to support genuine small businesses, with the agency warning it will guard against large companies creating shell MSMEs to exploit the cheaper tariffs. The move is part of broader efforts to streamline export procedures while maintaining biosecurity and health standards.

Prabowo: Waste Management a Top Priority This Year, Must Be Resolved

President Prabowo Subianto has declared that solving Indonesia's waste problem is a national priority to be achieved within a year. He emphasised that environmental cleanliness is a crucial prerequisite for boosting the tourism sector, which he views as an effective engine for economic growth and increasing foreign exchange.

Riau Governor Abdul Wahid Sentenced to Two Years in Prison for Corruption

The Pekanbaru Corruption Court has sentenced inactive Riau Governor Abdul Wahid to two years in prison after finding him guilty of corruption. He was also fined Rp200 million and ordered to pay Rp1.45 billion in restitution, with additional prison time if he fails to pay. The sentence is significantly lighter than the 8.5 years sought by KPK prosecutors for allegedly extorting payments from officials at the provincial public works agency.

Prabowo: Railways Provide Many Benefits, Especially for Low-Income Citizens

President Prabowo Subianto has emphasised the strategic role of railways as an economical transport and logistics mode that serves as an instrument for economic equality. Speaking at the revitalisation of Semarang Tawang Station, he stressed that railway services must prioritise public benefit over profit, particularly for low-income communities. The President also called for comprehensive development, increased investment, and improved safety measures at railway crossings.

Strengthening the Prevention and Victim Protection System Against Human Trafficking Urged

Deputy Speaker of the People's Consultative Assembly Lestari Moerdijat has called for a stronger national system to combat human trafficking, describing it as a betrayal of the constitution and humanity. She highlighted the evolving nature of the crime, which now exploits digital technology for online scams and targets educated individuals, with Indonesia being a major source country for victims in Southeast Asia. Moerdijat urged a revision of the 2007 anti-trafficking law to address digital-era challenges, including AI-facilitated exploitation and the responsibility of online platforms.

Bobby Dismisses 'Arrogant' Claims Over Walkout, Tells Critics to 'Learn Again'

North Sumatra Governor Bobby Nasution has rejected accusations of arrogance following his walkout from a regional budget signing ceremony. He argued the plenary session could not proceed without a quorum from the legislative council, shifting the blame to the DPRD's attendance. The Governor challenged his critics, particularly Deputy Speaker Ricky Anthony, to better understand parliamentary procedure.

Prabowo Targets Solving Indonesia's Waste Problem Within One Year

President Prabowo Subianto has set an ambitious one-year target to resolve Indonesia's nationwide waste problem, emphasising the need for clean rivers and waterways. Speaking at the revitalisation of Semarang Tawang Station, he linked environmental cleanliness and forest conservation to boosting the country's tourism sector. He also urged regional leaders to protect nature and proposed planting hundreds of millions of trees.

Free for Students, Burdensome for Schools

A mother reflects on the unintended consequences of Banten's free school programme, where several private schools have withdrawn due to inadequate government subsidies. While the policy relieves parents, it places financial strain on institutions struggling to cover operational costs and maintain quality. The piece argues that education must be treated as a national investment, not merely a cheap public service, to ensure both accessibility and high standards.

Education Agency Investigates Headteacher Over Hijab Ban for Students in Tana Toraja

The Education Agency in Tana Toraja, South Sulawesi, has summoned the headteacher of SMP Negeri 2 Bonggakaradeng over allegations she discriminated against seven Muslim students by barring them from wearing hijabs on school grounds. The headteacher claims her remarks were made in jest and has apologised, while the deputy regent has condemned any such prohibition as a breach of regulations. The incident has sparked protests from parents and prompted an official examination by local authorities.

Viral Post Claims Ex-IDF Soldiers Living and Building Businesses in Bali

Social media users in Indonesia have reacted angrily to claims that former Israeli Defence Forces (IDF) soldiers are residing and establishing businesses in Bali. The allegations, which spread widely on Threads, have sparked protests given the IDF's role in the conflict that has killed tens of thousands of Palestinians. Influencer Alexandra Amanda highlighted several social media accounts allegedly belonging to ex-IDF members operating villas and businesses in areas like Canggu and Umalas.

KPK Reveals Two Clusters of Corruption Involving Pemalang Regent Anom Widiyantoro

The Corruption Eradication Commission (KPK) has elevated the case against Pemalang Regent Anom Widiyantoro to the investigation stage, identifying two distinct clusters of alleged corruption. The first cluster concerns the regent's own suspected corrupt actions, whilst the second involves a surprising internal finding within the anti-graft body itself. The case originated from a sting operation conducted in late July across Jakarta, Pemalang, and Purworejo.

Innovation and Integrity Key to Building a Globally Competitive Indonesian Generation, Says Yusril

Coordinating Minister Yusril Ihza Mahendra emphasised that innovation, integrity, and lifelong learning are essential for developing a globally competitive Indonesian generation. Speaking at a Universitas Terbuka graduation seminar, he highlighted that technology like AI cannot replace human character and critical thinking. He urged graduates to view their degrees as a foundation for continuous self-development and contribution to society.

Minister AHY: Transmigration Areas to Become New Investment Destinations

Coordinating Minister Agus Harimurti Yudhoyono has announced a paradigm shift for Indonesia's transmigration programme, moving from population relocation to developing the areas as new economic growth centres. The government is deploying a 'Patriot Expedition' team of academics to map the economic potential of 154 transmigration areas, covering sectors from agriculture to downstream industry. The resulting data will inform policies aimed at attracting investment and creating sustainable development, supported by infrastructure and connectivity improvements.

KY Reveals Trends in Judge Violations: Bribery, Gambling, and Infidelity

The Judicial Commission (KY) reported that 121 judges were found to have violated the code of ethics and code of conduct in 2026. Violations ranged from procedural errors and case manipulation to personal misconduct including bribery, online gambling, and extramarital affairs. Several judges faced severe sanctions, including dishonourable discharge and permanent dismissal with or without pension rights.

Lindsey Graham's Final Legacy: 'Sanctions from Hell' Bill Against Russia Passes US Senate

The US Senate has overwhelmingly advanced a sweeping sanctions bill targeting Russia's war economy, a legislative effort championed by the late Senator Lindsey Graham as his final mission. The bill, which authorises tariffs of up to 100 per cent on major buyers of Russian oil and gas, gained momentum as a tribute to Graham following his death from a heart condition. The legislation also includes sanctions against Iran and is viewed as a significant signal of continued American support for Ukraine.

Government Facilitates Return of Abandoned Child of Illegal Indonesian Migrant Workers from Saudi Arabia

A five-year-old girl, the child of illegal Indonesian migrant workers from Lombok, has been repatriated from Saudi Arabia after being abandoned and reportedly sold by a caregiver. The child's parents remain in Saudi Arabia, and the local government has urged citizens to use official channels for overseas work to ensure legal protection. The child will be placed in the care of her grandmother upon arrival.

Jakarta Mulls EV Tax Incentive Review, BYD Warns of Impact on Electrification Momentum

The Jakarta provincial government is considering evaluating tax incentives for electric vehicles, citing potential revenue losses of over Rp2 trillion. BYD Motor Indonesia has cautioned that any rollback of fiscal support could disrupt the country's positive electrification trend and undermine long-term environmental and fuel subsidy reduction goals.

KPK Employee from Police Force Named Suspect for Allegedly Extorting Pemalang Regent

An administrative staff member of the Corruption Eradication Commission (KPK), who is a serving police officer, has been named a suspect for allegedly extorting the Regent of Pemalang. The KPK has stated it will conduct a thorough investigation to determine if there were other victims of similar practices. The commission also acknowledged the incident as a matter for internal introspection and pledged to implement corrective measures to prevent recurrence.

Attorney General's Office Carries Out Major Reshuffle, 90 District Prosecutors Replaced

The Indonesian Attorney General's Office has executed a sweeping rotation and mutation of officials, replacing 90 Heads of District Prosecution Offices (Kajari) across the country. The reshuffle, formalised in a decree signed on 29 July 2026, is described as a promotional and organisational refreshment process. The move aims to enhance legal services and law enforcement for the public, according to the office's spokesperson.

President: Railway Station Revitalisation to Boost Tourism Sector

President Prabowo Subianto has emphasised that the revitalisation of hundreds of railway stations by PT KAI is a key driver for tourism and national transformation. He highlighted that preserving historic stations, such as the recently renovated Semarang Tawang Station, can attract both local and international visitors. The President also stressed the importance of maintaining cleanliness and aesthetics as part of the broader infrastructure improvement efforts.

BPKH Partners with SAHL and Muamalat to Strengthen Digital Hajj and Umrah in Indonesia

BPKH Limited, a subsidiary of Indonesia's Hajj Financial Management Agency, has partnered with SAHL Group and Bank Muamalat to launch a digital roadshow across four major Indonesian cities. The initiative aims to introduce the GoSahl B2B platform to local travel operators, enhancing integration with service ecosystems in Saudi Arabia. The collaboration seeks to improve efficiency, transparency, and service quality within the Hajj and Umrah travel industry.

Pelican Crossing Replaces Tendean Footbridge, Now Operational

A new pelican crossing on Jalan Kapten Tendean in South Jakarta has begun operating as a temporary replacement for a heavily damaged pedestrian bridge. The Jakarta Transportation Agency has deployed personnel to manage traffic and socialise the new facility, which serves a high-volume area with over 2,500 vehicles and 874 pedestrians per hour. The local government is also accelerating plans to rebuild the permanent footbridge after it was destroyed by a truck.

Why the US Attacked Iran Again: Ex-Pentagon Official Explains the Rationale

A former Pentagon official suggests the latest US strikes on Iran are deliberately measured to avoid closing the door on diplomacy. David Des Roches assessed that the limited scale of the attacks aims to degrade Iran's ability to threaten its neighbours while preserving space for negotiations. The strikes follow heightened regional tensions, including a drone incident involving a gas tanker in Egypt.

President Prabowo urges KAI to boost railway investment and safety

President Prabowo Subianto has called on state railway operator PT KAI to significantly increase investment in the railway sector, particularly to enhance safety at thousands of level crossings. He stressed that railways must serve a public service function, especially for lower-income groups, and that development should extend to smaller cities without being overshadowed by high-speed rail projects.

Bank bjb Partners with Yasau to Strengthen Banking Services for Educational and Health Institutions

Bank bjb has signed a strategic partnership with the Adi Upaya Foundation (Yasau), an institution under the auspices of the Indonesian Air Force, to provide comprehensive banking solutions. The collaboration aims to expand financial access and inclusion across Yasau's network of universities and health polytechnics. The agreement covers a range of services including payroll, mortgage lending, and MSME credit for a two-year period.

Gerindra Legislator Outlines Measures to Anticipate Drought During Dry Season

A member of the House of Representatives Commission V has detailed various infrastructure programmes aimed at mitigating drought across Indonesia. The initiatives include constructing reservoirs, drilling boreholes, and improving irrigation channels to secure water supply for communities and agriculture.

Prabowo Orders KAI and Transport Ministry to Develop Trans Sumatra and Trans Kalimantan Railways

President Prabowo Subianto has instructed state railway company PT KAI and the Ministry of Transportation to begin work on the Trans Sumatra railway project, with plans to extend it to a Trans Kalimantan line. Speaking at the revitalised Semarang Tawang Station, he urged officials to think big and work on both projects simultaneously. The President also expressed his hope for the rapid expansion of Indonesia's railway network to unlock the nation's potential.

Far Below Prosecutors' Demands, Riau Governor Abdul Wahid Sentenced to Only 2 Years in Prison

The Pekanbaru Corruption Court has sentenced suspended Riau Governor Abdul Wahid to just two years in prison, a stark contrast to the 8.5 years demanded by KPK prosecutors. He was found guilty of extorting Rp2.45 billion from officials in the province's Public Works Department. In addition to the prison term, the court ordered him to pay a fine and restitution of Rp1.45 billion.

Jakarta Bina Marga Installs Temporary Pelican Crossing on Jalan Kapten Tendean

The DKI Jakarta Bina Marga Agency has installed a temporary pelican crossing on Jalan Kapten Tendean to restore pedestrian access following the removal of a damaged footbridge. The facility will serve the public while the provincial government accelerates plans to rebuild the permanent bridge, which is estimated to cost between Rp5 billion and Rp6 billion. Authorities are exploring non-APBD financing schemes, including floor area ratio (KLB) compensation, to fund the reconstruction.

Parliamentary Press Corps Condemns Deddy Sitorus' 'Like a Circus' Remark, Plans to Report to Ethics Council

The Parliamentary Press Corps (KWP) has strongly condemned remarks made by House of Representatives (DPR) member Deddy Sitorus, who described journalists covering an open meeting as being 'like a circus'. The KWP considers the statement a serious insult to the journalistic profession and is demanding a public apology within 24 hours. Failing that, the group intends to file an ethics complaint with the House Ethics Council (MKD) and may pursue legal action.

Indonesia Partners with China to Accelerate Housing Provision

Indonesia and China are strengthening cooperation in the housing sector, focusing on providing homes for low- and middle-income communities. The partnership will involve Indonesia preparing land, market data, and regulations to facilitate mutually beneficial investment. The collaboration aims to boost the domestic industry by prioritising local materials and involving small businesses in the supply chain.

KPK Chairman's Police Aide Arrested in Pemalang Regent Bribery Scandal

A police officer serving as an aide to the Corruption Eradication Commission (KPK) chairman has been arrested for allegedly leaking investigation details and extorting money from Pemalang Regent Anom Widiyantoro. The aide's father is suspected of acting as an intermediary to collect a Rp 1.2 billion bribe intended to halt the regent's corruption case. The KPK has pledged internal reforms following the incident, which has exposed a breach within the anti-graft body itself.

Pemalang Regent Arrested for Allegedly Extorting Officials to Pay Rp1.2 Billion Bribe to KPK Insiders

The Corruption Eradication Commission (KPK) has detained Pemalang Regent Anom Widiyantoro and three others for allegedly extorting local officials and contractors. The regent reportedly collected nearly Rp2 billion, of which Rp1.2 billion was handed to a police officer's father to allegedly bribe KPK insiders to settle a corruption case. The arrests were made during a sting operation across Central Java and Jakarta.

Pemalang Regent Allegedly Collected Rp 1.9 Billion from Subordinates to Bribe KPK

The Corruption Eradication Commission (KPK) has named Pemalang Regent Anom Widiyantoro a suspect in a bribery case. He allegedly extorted Rp 1.9 billion from regional officials and private parties through an intermediary. The funds were intended to bribe a KPK administrative staff member to settle a corruption case against him.

President Prabowo urges KAI to prioritise public service over profit

President Prabowo Subianto has called on state railway operator PT KAI to focus on its public service mandate rather than solely pursuing financial gain. He emphasised that railways are a tool for economic democracy and must provide affordable transport, especially for lower-income citizens. The President made the remarks during the inauguration of the revitalised Semarang Tawang Station.

Buleleng Government Allocates Rp 5 Billion for Diponegoro Street Revitalisation

The Buleleng Regency Government has earmarked approximately Rp 5 billion to transform Jalan Diponegoro in Singaraja into a culinary hub and pedestrian-friendly zone. The project aims to revitalise the historic area by improving sanitation, adding pedestrian walkways, and creating a community gathering space. Officials hope the redevelopment will mirror the success of the Lovina area and attract more visitors to the old town district.

PNM Holds Skills Training to Strengthen Inclusive Economy for People with Disabilities

PT Permodalan Nasional Madani (PNM) has launched an ecoprint training programme for 50 people with disabilities in Bekasi Regency. The initiative aims to foster economic independence and support the growth of a more inclusive economy through creative entrepreneurship.

Tax Restitution and Subsidy Spending Projected to Weigh on 2026 State Budget Deficit

Indonesia's state budget deficit is projected to widen by the end of 2026, despite a temporary improvement in the first half. Economists point to rising subsidy expenditures, particularly for fuel, and the commencement of deferred tax restitution payments as key factors that will erode tax revenues. A potential tax revenue shortfall of up to Rp149 trillion could further pressure the fiscal balance.