Indonesian Political, Business & Finance News

Archive: 11 August 2026

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Government Plans to Increase MSME Financing to IDR 2,000 Trillion

The Indonesian government is aiming to boost access to credit for micro, small, and medium enterprises (MSMEs) to IDR 2,000 trillion, up from this year's target of IDR 1,500 trillion. Coordinating Minister for Economic Affairs Airlangga Hartarto stated the increase is intended to narrow the gap between the capital market and non-capital market sectors. The Minister of MSMEs, Maman Abdurrahman, cautioned that expanded financing must be accompanied by securing domestic markets against an influx of imported goods to prevent non-performing loans.

BNPP Secures 12th Consecutive Unqualified Opinion from BPK for 2025 Financial Report

The National Border Management Agency (BNPP) has received an Unqualified Opinion (WTP) from the Supreme Audit Agency (BPK) for its 2025 financial report, marking the 12th consecutive year it has achieved this status. BNPP Secretary Makhruzi Rahman stated that while the opinion reflects professional assessment of the report's fairness, it should be viewed as part of an ongoing process to improve accountability and transparency. The agency intends to use the audit results to further strengthen financial governance and the effectiveness of its border area management programmes.

Trimegah AM Launches XTRA Sharia Gold ETF on the Indonesia Stock Exchange

PT Trimegah Asset Management has listed a new sharia-compliant gold exchange-traded fund (ETF) under the ticker code XTRA on the Indonesia Stock Exchange. The instrument allows investors to gain exposure to gold without holding the physical asset, with transactions facilitated by participating dealers and underlying bullion managed by PT Pegadaian. The launch aims to provide a transparent and efficient investment alternative within the domestic capital market ecosystem.

BMKG Places Bangka Belitung on Drought Alert

The Meteorology, Climatology, and Geophysics Agency (BMKG) has declared a drought alert for the Bangka Belitung Islands, warning of potential clean water crises during the dry season. Residents have been urged to conserve water and avoid open burning of land, as dry conditions and strong winds increase the risk of uncontrollable fires.

FPKB: Placing Ministries in Regions Could Boost Economic Equality

The Forum Pembela Kedaulatan Bangsa (FPKB) has proposed relocating central government ministry offices to various provinces to stimulate economic equality. The group argues this move would reduce the burden on Jakarta, create new economic activity, and revitalise regional state-owned enterprises. They also called for ministers to be more creative and efficient in budget management rather than requesting annual increases.

Fatal Kotamobagu Drag Race Crash: Driver Could Be Named Suspect

North Sulawesi Police have taken over the investigation into a drag race accident in Kotamobagu that killed eight people. The event organiser and the driver have been questioned and are potential suspects. The police chief emphasised that the driver faces a high likelihood of being named a suspect due to negligence.

Free Nutritious Meals for All: Same Taste, No Barriers

Indonesia's Free Nutritious Meals (MBG) programme is fostering equality and togetherness among schoolchildren, according to parents and observers. The initiative, managed by the National Nutrition Agency, ensures all students receive the same standardised, nutritionally balanced meals regardless of their economic background. Policy analyst Trubus Rahardiansah noted the programme helps standardise nutritional fulfilment across the diverse archipelago, reducing social gaps and supporting children's development.

Year-End Alert: Prices Expected to Rise Again

Bank Indonesia anticipates an increase in retail prices this December, driven by heightened consumer demand during the Christmas and New Year holidays. The central bank's survey indicates the General Price Expectation Index will rise to 168.1, while inflationary pressures are expected to ease in September following the Independence Day celebrations.

Police Summon Organisers and MC Over Qur'an Memorisation Challenge for Alcohol at Jakarta Music Festival

Jakarta police are investigating a music festival booth that allegedly offered alcoholic drinks as a reward for reciting a Qur'anic verse. The event organiser, The Sounds Project, has condemned the incident, stating it was unauthorised, and has reprimanded the sponsor involved.

MC Booth Newport Apologises for Quran Memorisation Challenge with Alcohol Prize

A master of ceremonies for an alcohol brand has apologised after a public backlash over a competition that offered a bottle of liquor as a prize for reciting a surah from the Quran. The MC admitted negligence in failing to control the situation after an audience member in white initiated the challenge. The incident, which occurred at a music festival in Jakarta, has been widely condemned for its disrespectful use of a holy scripture in a promotional context.

Minister: Psychology Education Must Become Instrument to Address Youth Mental Health Issues

Minister of Higher Education, Science and Technology Brian Yuliarto has called for psychology education to play a greater role in tackling mental health problems among Indonesian youth. Citing a personal experience with a self-harming student and Health Ministry data showing 10 percent of adolescents suffer from mental health issues, he stressed the need for psychologists and educators to develop new outreach and educational breakthroughs. The minister warned that the mental health of the young generation is critical as they are the driving force for the nation's future demographic dividend.

Warning: High Waves Up to 4 Metres in DIY Waters Until 15 August

The Meteorology, Climatology and Geophysics Agency (BMKG) has issued a warning for high waves reaching 2.5 to 4 metres in the waters off the Special Region of Yogyakarta (DIY) until 15 August. The phenomenon, attributed to increased wind speeds and currents, has already caused minor damage to beachside stalls and fishing boats in Gunungkidul.

Police Investigate Quran Memorisation Challenge with Alcohol Prize at Jakarta Music Festival

Indonesian police have launched an investigation into a viral incident at The Sounds Project music festival in North Jakarta, where a booth offered alcoholic drinks as a prize for reciting a Quranic verse. The event has drawn widespread condemnation from the public and religious authorities, including the Indonesian Ulema Council (MUI), who deemed the act blasphemous. The MC involved has issued a public apology, while a member of the House of Representatives has urged the National Consumer Protection Agency and the Ministry of Trade to impose sanctions.

Peking University ready to expand research cooperation with Transmigration Ministry

Peking University's Institute of South-South Cooperation and Development has expressed readiness to broaden its partnership with Indonesia's Ministry of Transmigration through joint research and academic exchanges. The collaboration aims to support the development of transmigration areas, with a focus on population governance, balanced regional development, and poverty alleviation. The initiative follows a planned training programme for Indonesian officials in China and a seminar on China's development model.

PDIP Condemns Quran Memorisation Challenge for Alcohol as 'Mockery of Religion'

A member of the Indonesian Democratic Party of Struggle (PDIP) has strongly criticised a marketing stunt at a music festival that offered alcoholic drinks as a reward for reciting verses of the Quran. The politician warned that religion should not be used as a marketing gimmick and called the act a potential insult to Islam. The Indonesian Ulema Council (MUI) has also condemned the incident, while PDIP urged law enforcement to investigate and called for tighter regulation of alcohol promotions in digital spaces.

Former Israeli General Says Israel Wants Gaza Destroyed for Generations, Rejects Peace Plan

A former Israeli general has stated that Israel's interest lies in ensuring Gaza remains completely destroyed for generations, explaining the country's rejection of a 15-clause peace proposal. Giora Eiland, ex-head of Israel's National Security Council, argued that greater devastation leads to more despair and serves as a lasting monument to the events of 7 October. His comments provide insight into the strategic thinking behind Israel's opposition to reconstruction efforts in the Palestinian enclave.

Minister of Agriculture Applauds Unhas for Retaining Pimnas Champion Title

Minister of Agriculture Andi Amran Sulaiman has praised Hasanuddin University (Unhas) for successfully defending its overall champion title at the National Student Scientific Week (Pimnas). The achievement marks the university's second consecutive victory, highlighting the creativity and competitiveness of its students. Unhas Rector Prof Jamaluddin Jompa expressed optimism about securing a third consecutive title at the upcoming Pimnas in 2026.

Danamon Economist Projects Indonesian Economy to Grow 5.2 Percent in 2026

Bank Danamon's lead economist forecasts Indonesia's economy will expand by 5.2 percent in 2026, with growth momentum expected to moderate in the second half as fiscal support normalises. While public spending continues to underpin domestic demand, investment is seen as a key buffer against the slowdown, driven by national priority programmes and private sector activity. The medium-term outlook suggests the growth structure will increasingly rely on productive investment.

State Secretary and Cabinet Secretary Inspect Partial Rehearsal for Independence Day Ceremony at Palace

Minister of State Secretary Prasetyo Hadi and Cabinet Secretary Teddy Indra Wijaya reviewed initial preparations for Indonesia's 81st Independence Day ceremony at the Merdeka Palace. The partial rehearsal involved TNI, Polri, and Paskibraka troops, with officials evaluating formations and layout. An additional 3,400 public invitations have been allocated due to high enthusiasm, to be distributed across the morning and afternoon ceremonies.

KPK Prosecutor: Yaqut Prepared USD 1 Million to Influence DPR Hajj Inquiry Committee

KPK prosecutors allege that former Religious Affairs Minister Yaqut Cholil Qoumas prepared USD 1 million (approximately Rp 17.8 billion) to influence the findings of the House of Representatives' Special Committee (Pansus) investigating the 2024 Hajj. The funds were reportedly intended to sway the committee's conclusions regarding the distribution of additional Hajj quotas, which allegedly violated existing laws. The case has resulted in state losses estimated at Rp 622 billion.

Australia and Vietnam deepen strategic partnership

Australia and Vietnam have agreed to deepen their comprehensive strategic partnership, signing cooperation agreements in defence, agriculture, and border security. The two nations expressed concern over restrictive trade practices and committed to strengthening supply chain collaboration in critical minerals, semiconductors, and clean energy. The enhanced partnership comes amid growing bilateral trade, which rose 22 per cent year-on-year in the first half of 2026.

Indonesia Ranks Fourth in World Gold Reserves with 3,600 Tonnes

Indonesia holds the fourth-largest gold reserves globally, with an estimated 3,600 tonnes, according to the latest US Geological Survey data. The country accounts for a significant share of global production, churning out approximately 160 tonnes of gold in 2024. This position underscores Indonesia's substantial mineral wealth and the extensive footprint of mining operations across its provinces.

House Commission III Urges Categorising Hoax Provocateurs as Enemies of the State

A senior Indonesian lawmaker has called for the deliberate spreaders of hoaxes to be treated as enemies of the state, arguing that organised disinformation poses a serious threat to public order and democracy. The statement follows a Metro Jaya Police investigation that uncovered a systematic practice of paying third parties to produce and disseminate criminal content. Police have detained nine suspects and identified four main modus operandi, including the manipulation of official documents and the creation of fake electronic records.

Airlangga: Gold ETF Strengthens Indonesia's Position in Global Investment

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Gold Exchange Traded Fund (ETF) will bolster Indonesia's position as a global gold investment hub. He noted that national gold holdings managed by Pegadaian have surged to 153 tonnes, valued at approximately 20 billion US dollars, surpassing India's gold ETF value. The government views the development of the gold ecosystem, from upstream mining to downstream investment instruments, as a key strategy to compete internationally amid global economic uncertainty.

Ali Masykur Musa Urges NU to Become a Global Soft Diplomacy Force

Ikatan Sarjana Nahdlatul Ulama Chairman Ali Masykur Musa has called for the organisation to expand its role on the global stage, arguing that increasingly borderless world dynamics demand it. He envisions NU promoting 'peaceful coexistence' through a social and religious approach he terms 'equilibrium diplomacy'. Musa also stressed that future NU leaders must possess a strong understanding of geopolitics and international relations.

OJK Makes Strengthening MSME Ecosystem a Core Programme

Indonesia's Financial Services Authority (OJK) has prioritised strengthening the micro, small, and medium enterprise (MSME) ecosystem and its access to financing. Key initiatives include updating the SLIK credit information system and implementing a new regulation to simplify lending processes. The authority also stressed the importance of protecting MSMEs from illegal online lenders and improving financial reporting standards within the sector.

OJK Chief Speaks Out on Destry Damayanti as Sole Candidate for BI Governor

The Financial Services Authority (OJK) has expressed its support for Destry Damayanti's candidacy as the sole nominee for Bank Indonesia Governor. OJK Chairperson Friderica Widyasari Dewi highlighted Damayanti's strong track record in the financial sector. She also emphasised the ongoing synergy between OJK and the central bank, particularly in developing micro, small, and medium enterprises.

Freeport to Invest US$4 Billion in New Kucing Liar Mine, Production Targeted for 2029

PT Freeport Indonesia is developing the Kucing Liar underground mine in Papua, with total investment projected to reach US$4 billion. The company has already spent US$1.4 billion on the project, which is expected to begin production in 2029 following a delay caused by a mudslide at the nearby Grasberg Block Cave. Once operational, the mine is anticipated to produce an average of 750 million pounds of copper and 735,000 ounces of gold annually.

How Impact Investing Makes Grant Funding More Effective in Tackling Social Issues

Impact investing is emerging as a key tool to make grant funding more effective in addressing social challenges. AVPN, Asia's largest social investment network, connects philanthropists, investors, and policymakers to drive sustainable development. In Indonesia, the ecosystem for impact investing still requires improvement across health, education, and MSME sectors.

Deputy Trade Minister: Indonesia's F&B Exports Rank Fourth in ASEAN

Indonesia's food and beverage exports have reached 6.25 billion US dollars, placing the country fourth among ASEAN nations. Deputy Trade Minister Dyah Roro Esti stated there is still significant room for growth, with the ministry facilitating international market penetration through its trade representatives in 33 countries. The government also sees substantial potential in the halal market and among the Indonesian diaspora abroad.

Captain of Jessica Mila's Vessel Sanctioned After Violating Sailing Ban to Padar Island

The Labuan Bajo Port Authority has suspended the captain of a cruise ship that transported Indonesian celebrity Jessica Mila and her entourage to Padar Island in violation of a weather-related sailing ban. The captain, identified as DJ, had his seafaring licence temporarily suspended and was removed from the vessel after it was discovered the ship only had approval to sail to Rinca Island. The incident drew public attention after Mila shared footage of the trip on social media during the official closure period.

Addiction Epidemic Worsens as 3,000 Cases Flood US Courts

More than 3,000 lawsuits have been filed in US federal courts against major social media companies, alleging their platforms are deliberately designed to addict young people. The litigation, brought by state governments, school districts, and individuals, claims these designs contribute to rising depression, anxiety, and mental health crises among youth. A US appeals court has rejected the tech giants' bids to halt the proceedings, allowing the cases to move forward.

Chronology of Qur'an Recitation Challenge at Alcohol Brand Booth Goes Viral, MC Reveals Spontaneous Incident as Police Investigate

A viral video showing a Qur'an memorisation challenge at a Newport alcoholic beverage booth during a music festival in North Jakarta has sparked public outrage and a police investigation. The event's MC has apologised, claiming the challenge was spontaneous, while the festival organiser has also issued a clarification. Authorities are now probing the incident, which linked the recitation of a holy verse with an alcoholic drink reward.

JCI Falls Back into the Red, Down 0.97% in First Session

The Jakarta Composite Index (JCI) declined sharply during the first trading session on Tuesday, dragged down by broad-based selling across all sectors. The drop was exacerbated by heavyweights like Bank Central Asia and was influenced by global tensions after US President Donald Trump demanded compensation from Iran, complicating efforts to reopen the Strait of Hormuz and driving oil prices higher.

Red and White Decorations Adorn Parliament Ahead of Joint Session

Preparations are underway at the Indonesian Parliament complex for the annual joint session on 14 August 2026, with red and white ornaments and red carpets being installed. The event will feature a morning session and an afternoon plenary meeting on the state budget, with eight beneficiaries of government programmes invited to attend alongside other distinguished guests.

Police Confirm Man Who Uprooted Flag in Bantul Is Same Perpetrator of Gamping Railway Barrier Vandalism

Police in Bantul have confirmed that the individual who vandalised a flagpole and the Indonesian flag in Kasihan is the same suspect responsible for damaging a railway crossing barrier in Gamping, Sleman. The suspect, a university student from outside Yogyakarta, allegedly committed both acts while intoxicated. Authorities have upgraded the case to the investigation stage and are currently questioning witnesses to establish a motive.

Crypto Cons - Indonesia Expat

As Indonesia's rupiah weakens, cryptocurrencies are increasingly seen as a hedge but also attract widespread scams, from pump-and-dump schemes to fake platforms using AI deepfakes. Licensed trading is permitted under OJK supervision, yet many tokens rely on hype and often collapse, leaving investors with significant losses. Despite a recent tax-induced decline in trading volumes, the lure of quick profits continues to draw investors, influencers, scammers, and tax authorities alike.

Israelis Increasingly Reluctant to Stay, Exodus Sentiment Surges

A new poll reveals that nearly one in five Israelis considered leaving the country over the past two years, contradicting Israel's long-standing narrative as a safe haven for Jews. The survey indicates a significant rise in reverse migration, with over 150,000 people permanently departing in 2024 alone. The trend is causing growing alarm within the Israeli establishment.

Family Acknowledges Sutrimo Worked for Febrie: Started as a Builder

The family of Sutrimo, a man found dead under mysterious circumstances in South Jakarta, has confirmed he worked for former senior prosecutor Febrie Adriansyah. They stated Sutrimo began as a builder on Febrie's house before being trusted with various household tasks. Police are set to exhume Sutrimo's body in Banyumas as part of an investigation into his suspicious death.

Bapanas Distributes 610.3 Thousand Tonnes of SPHP Rice as of 8 August 2026

Indonesia's National Food Agency (Bapanas) has distributed 610,300 tonnes of rice under its Stabilisation of Food Supply and Prices (SPHP) programme, reaching 73.71 percent of its 2026 target. The programme, which now operates year-round, aims to maintain price stability and strengthen public supply. Complementary measures include food aid for 33.2 million families and the distribution of subsidised maize to poultry farmers to stabilise egg and chicken meat prices.

High Waves Hit Gunungkidul's Southern Coast, Damaging Stalls and Fishing Boats

High waves reaching 2.5 to 4 metres struck the southern coast of Gunungkidul, Yogyakarta, causing minor damage to a food stall at Jungwok Beach and damaging several fishing boats at Gesing Port and Baron Beach. Officials had issued prior warnings to stall owners and fishermen to secure their property, and have cautioned that wave heights may peak again later in the week.

Komnas HAM urges cross-ministerial collaboration to aid Central Papua refugees

Indonesia's National Commission on Human Rights (Komnas HAM) is calling for stronger coordination between ministries, local governments, and stakeholders to address the humanitarian needs of civilians displaced by conflict in Central Papua. The push follows an audience with the Social Affairs Ministry, where it was revealed that emergency aid has been distributed to over 1,000 refugees in Puncak Regency. Komnas HAM stressed the importance of accurate data collection to ensure that food, clothing, and health services reach the thousands of people scattered across various locations.

Ahead of Prabowo's Speech, Investors Scrutinise 2027 State Budget Deficit

Investors are closely watching President Prabowo's upcoming state address on 14 August 2026, where he will present the 2027 State Budget draft and its financial note. Market participants are particularly focused on the fiscal posture, the targeted budget deficit, and the economic growth forecast. The speech is expected to influence sentiment around the Rupiah exchange rate, government bond yields, and the Indonesian Crude Price assumption.

Visa Indonesia Secures Naming Rights for MRT Blok A Station

Visa Indonesia has acquired the naming rights for the MRT Blok A Station in Jakarta, rebranding it as 'Stasiun MRT Blok A Visa'. The partnership aims to expand contactless payment access based on global standards within the city's public transport system. The initiative targets the station's creative worker demographic and international tourists to boost ridership and support Jakarta's goal of becoming a tourist-friendly city.

Brad Pitt Weighs In on AI's Role in Mid-Budget Filmmaking

Hollywood actor Brad Pitt has shared his perspective on the use of artificial intelligence in cinema, suggesting it could be a valuable tool for producing mid-budget films. He also revealed a past paranoia about digital scanning, admitting he previously insisted on the destruction of his digital likenesses in contracts.

SNLIK 2026: Financial Literacy Rises 2.93 Percent, Inclusion Reaches 93.61 Percent

Indonesia's 2026 National Survey of Financial Literacy and Inclusion (SNLIK) reveals a rise in financial literacy to 69.57 percent and inclusion to 93.61 percent, surpassing the government's 2029 targets. The survey highlights a persistent urban-rural gap, with Jakarta recording the highest literacy and Papua Pegunungan the lowest. The Financial Services Authority (OJK) plans to implement tailored strategies based on demographic and regional characteristics to further improve both access and the quality of financial inclusion.

Multinational Investors from China, South Korea, Japan, UK, and UAE Eye Wiraraja Madura Industrial Estate

The Wiraraja Madura Industrial Estate in Bangkalan, East Java, is attracting interest from a diverse range of international investors, including companies from China, South Korea, Japan, the United Kingdom, and the United Arab Emirates. The development aims to broaden investment locations beyond Java's traditional industrial hubs, leveraging the strategic connection to Surabaya via the Suramadu Bridge. Several memoranda of understanding are expected to be upgraded to more concrete cooperation agreements by September 9.

Integrated system for handling violence victims requires cross-ministerial collaboration, says KPPPA

The Ministry of Women's Empowerment and Child Protection (KPPPA) has highlighted the urgent need for cross-sector collaboration to create an integrated service system for victims of violence. A pilot programme in Jakarta has revealed persistent obstacles including overlapping authority, legal enforcement gaps, and unintegrated data. The government aims to develop a replicable model in the capital before expanding it to other regions.

Trump Secretly Left Turkey on Military Jet Amid Iran Assassination Threat

President Donald Trump used a decoy operation involving a military C-32A aircraft to leave Turkey after a NATO summit in July, according to a Washington Post report. The manoeuvre was reportedly triggered by a credible threat from Iran following renewed US airstrikes. White House staff and the press corps were led to believe the president was aboard the standard Air Force One.

SBY to Miss MPR Annual Session for Health Check-Up in the US

Former Indonesian President Susilo Bambang Yudhoyono will not attend the MPR Annual Session on 14 August as he is undergoing a medical check-up in the United States. The Democratic Party confirmed his absence, while the MPR stated the session's schedule remains unchanged and all former presidents and vice presidents were invited.