Indonesian Political, Business & Finance News

Archive: 12 August 2026

Showing 251-300 of 1,433 articles

Jakarta's bond issuance to proceed with central government assistance

The Jakarta provincial government is moving forward with plans to issue regional bonds, a process being assisted by several central government agencies and the Asian Development Bank. The total planned issuance has increased to IDR 5.6 trillion, to be carried out in stages in 2027 and 2028. The Financial Services Authority (OJK) has expressed its support, with licensing expected to be the final step before the bonds are offered to the public.

Evacuees from KMP Putri Yasmin Fire Rise to 212

The number of people evacuated from the fire-stricken ferry KMP Putri Yasmin in the Lombok Strait has increased to 212, according to the Mataram Search and Rescue Office. The updated figure includes 39 individuals rescued by another vessel, KMP Pratama Kalyani, who were being transported to Lembar Port. Authorities have not yet confirmed the total number of passengers originally on board, stating that passenger manifest verification remains the responsibility of the ferry company.

Govt accentuates internet expansion for public services

Indonesia's BAKTI agency has connected over 31,000 public service points to the internet, with 68 per cent in the education sector. The initiative, supported by the SATRIA-1 satellite and Palapa Ring fibre-optic network, aims to reach frontier and disadvantaged regions. The programme also includes digital literacy training and partnerships with village-owned enterprises to boost local economic self-reliance.

Minister Confirms 173 Passengers Recorded in KMP Putri Yasmin Fire, SAR Operation to Last Seven Days

Transport Minister Dudy Purwagandhi has confirmed that 173 people have been temporarily recorded as passengers in the KMP Putri Yasmin ferry fire in the Lombok Strait. A call centre will be opened for families to report missing relatives as the manifest is verified. The National Search and Rescue Agency (Basarnas) will lead a seven-day search and rescue operation.

Tsunami of Bankruptcies: 1,000 Japanese Companies Go Under

Japan recorded 1,028 corporate bankruptcies in July 2026, marking the second consecutive month above 1,000 as small firms struggle with labour shortages and rising costs. Total liabilities surged 41.4% to ¥23.6 billion, driven in part by the collapse of credit card system provider Zentoshin. The data highlights deepening structural pressures on Japanese businesses from wage inflation, a weak yen, and the impact of artificial intelligence on the software sector.

TransJakarta Bus Breaks Down in Petukangan, Passengers Disembark on 'Sky Route'

A TransJakarta bus breakdown in Petukangan disrupted services on Corridor 13, known as the 'sky route', forcing passengers to disembark on the elevated track. The operator apologised for the inconvenience and temporarily shortened routes 13B and L13E, terminating them at JORR bus stop. Affected passengers heading towards Petukangan, Puri Beta, and Ciledug were advised to alight at the JORR stop.

UOB: Banks must shift focus from products to customer needs

UOB Indonesia's Acting Head of Consumer Banking, Herman Soesetyo, stated that banks need to transition from a product-centric approach to becoming trusted financial advisors. He noted that increasingly complex customer expectations and diverse financial profiles, particularly among Indonesia's growing middle and affluent classes, require personalised solutions rather than one-size-fits-all products. This shift necessitates combining human expertise with data analytics and technology, while maintaining a hybrid model of physical branches for wealth management and expanded digital channels for transactions.

Netherlands Faces Prolonged Drought as Rhine River Hits Record Low

The Netherlands is grappling with an exceptionally severe drought, with the Rhine River's flow at Lobith dropping to a historic low of 615 cubic metres per second. The Dutch Ministry of Infrastructure and Water Management warns that low river levels may persist until December, exacerbating damage to agriculture and ecosystems. While drinking water supplies remain safe, rising salinity levels are being closely monitored at intake points.

KKP Proposes 63 Additional Fish Processing Units for Fishery Exports to Türkiye

Indonesia's Ministry of Marine Affairs and Fisheries (KKP) is seeking approval numbers for 63 additional fish processing units (UPIs) to boost seafood exports to Türkiye. The proposal follows a joint pre-border inspection by Turkish authorities of seven existing facilities in August 2026. If approved, the total number of Indonesian UPIs with access to the Turkish market would rise from 72 to 135, building on a trade that reached 2,500 tonnes worth USD 4.16 million in 2025.

DIY Trade and Industry Office Commits to Strengthening Fashion Ecosystem Through JFW 2026

The Yogyakarta Special Region's Trade and Industry Office is organising the 21st Jogja Fashion Week (JFW) 2026 to bolster the local fashion industry ecosystem. The event, supported by regional autonomy funds, aims to foster new designers from vocational schools and universities while facilitating business interactions. It will feature fashion shows, an exhibition with 82 local SMEs, and educational workshops.

Gold Governance Key to Strengthening National Mineral Sovereignty

Indonesia is seeking to close a significant gap between domestic gold demand and formal supply by improving governance across the entire value chain. The government is facilitating permits for informal miners and pushing for better traceability to integrate more production into the legal economy. Officials argue that strategic management of gold resources is essential for national security, economic resilience, and public welfare.

Kupang City Strengthens Human Development

The Kupang City Government in East Nusa Tenggara is prioritising human development as a cornerstone of regional progress, aligning with the theme of Indonesia's 81st Independence Day. Mayor Christian Widodo emphasised that a city's advancement is measured not only by infrastructure but also by the quality and character of its people. The administration is focusing on education, literacy, child protection, and professionalising the civil service to ensure equitable opportunities.

Indonesia explains naval exercise with China near Taiwan

The Indonesian Navy has clarified that a recent passing exercise with a Chinese warship near Taiwan was a routine maritime diplomacy engagement, not a political statement. The drill occurred as the Indonesian frigate KRI I Gusti Ngurah Rai-332 was returning from joint exercises with Russia, and officials emphasised it reflects Indonesia's free and active foreign policy. The exercise took place in international waters east of Taiwan, outside the disputed South China Sea.

Police Question Sound Project Management Over Ad-Duha Recitation Challenge for Alcohol

Jakarta police are investigating the management of the Sound Project music festival after a visitor allegedly challenged attendees to recite a Quranic verse in exchange for alcohol. Initial findings suggest the incident was spontaneous and not part of the official event programme. Authorities are examining potential negligence by the organisers and have warned the public against spreading unverified information.

Depraved Act: Pandeglang Man Caught by Wife Sexually Abusing Stepdaughter

A 29-year-old man in Pandeglang, Banten, has been arrested for the alleged rape of his underage stepdaughter. The perpetrator was caught in the act by his wife, who immediately alerted local residents. Police report that the suspect had repeatedly coerced the victim, claiming he was entitled to sexual favours after caring for her for four years.

KMP Putri Yasmin Victim Data Not Yet Final, 173 People Recorded

Transport Minister Dudy Purwagandhi has stated that 173 people have been provisionally recorded following the fire on the KMP Putri Yasmin ferry in the Lombok Strait, with data collection and search efforts still ongoing. The government will establish a complaint centre for families who believe their relatives were on board but have not yet been accounted for. The National Search and Rescue Agency (Basarnas) has a seven-day window to conduct search and rescue operations in accordance with regulations.

Indonesia Must Not Become a Market for Illegal Goods, Says Minister as 1.3 Tonnes of Ketamine Destroyed in Batam

Coordinating Minister for Political and Security Affairs Djamari Chaniago has stressed that Indonesia must not become a transit point or market for transnational crime, following the destruction of 1.3 tonnes of ketamine in Batam. The minister highlighted the challenges of securing Indonesia's vast maritime borders, particularly in the Riau Islands, which are vulnerable to international smuggling networks. He emphasised that uncovering the entire criminal network is more critical than the quantity of drugs seized.

Coordinating Minister PMK: EDRR 2026 Drives Indonesia to Become World Disaster Technology Hub

Coordinating Minister for Human Development and Culture Pratikno has stated that the EDRR Expo 2026 is a key catalyst for Indonesia's ambition to become a global centre of excellence for disaster technology. He stressed the nation's goal of achieving technological self-reliance rather than remaining merely a testing ground or market for foreign products. The exhibition aims to transform advanced early warning information into life-saving field actions, given Indonesia's high frequency of nearly 5,000 disaster events annually.

Commemorating World Hepatitis Day, Etana Intensifies Hepatitis A Vaccination

PT Etana Biotechnologies Indonesia has launched a series of Hepatitis A vaccination drives across several Indonesian universities to mark World Hepatitis Day. The programme, which has distributed hundreds of vaccine doses, targets students and academic staff who are considered a high-risk group for transmission. The initiative highlights the importance of preventive measures and collaboration between the pharmaceutical industry and educational institutions to protect public health.

Russian Oil 'Escapes' via Arctic as Hormuz Strait Traffic Dwindles

Russia is significantly increasing crude oil shipments to Asia via the Northern Sea Route (NSR), with seven tankers carrying around 6 million barrels already dispatched this year. This shift leverages the Arctic passage to bypass European sanctions and geopolitical risks, while maritime traffic through the Strait of Hormuz has plummeted to its lowest level in months due to ongoing Middle East tensions. The NSR offers a shorter voyage to China and is set to become a more strategic energy corridor, especially with the anticipated launch of Rosneft's Vostok Oil project.

Provincial Government Wants Ministry to Inspect Revitalisation Needs for Access to Enggano

The Bengkulu Provincial Government is urging central ministries to conduct a direct field inspection of the deteriorating airport and port facilities on Enggano Island. Officials argue that current infrastructure is insufficient, with the airport only accommodating small pioneer flights and the port facing operational issues. The province hopes the central government will fund the revitalisation, as the project exceeds the capacity of the regional budget.

Jakarta Governor Demands Legal Action Over Quran Recitation Challenge for Alcohol at Music Festival

Jakarta Governor Pramono Anung has called for legal proceedings against the organisers of a music festival challenge that offered alcohol as a prize for reciting the Quran. The incident, which occurred at the Ancol recreational area managed by a city-owned enterprise, has been deemed a provocation that hurts the feelings of Muslims. Pramono stressed there would be no forgiveness for such acts, while the DPRD speaker reminded business owners to maintain public order.

Indonesia now faces 10 percent US reciprocal tariff: Minister

Indonesia's reciprocal tariff from the United States has been set at 10 percent following a Section 301 investigation into forced labour, replacing a previously annulled 18 percent rate. The new tariff, effective from July 24, 2026, reflects Indonesia's existing Agreement on Reciprocal Trade with the US. The Indonesian government is continuing negotiations to seek a further reduction, potentially to zero percent.

Mayor Andrei Angouw Holds Technical Meeting, Asks Neighbourhood Heads to Record Street Lighting Conditions

Manado Mayor Andrei Angouw led a technical meeting to address the state of public street lighting (PJU) across the city. He instructed neighbourhood heads (Kaling) to immediately update data and identify the condition of streetlights in their respective areas. The city government is also preparing a video tutorial to assist neighbourhood heads in monitoring the infrastructure, aiming to ensure all lights function properly for public comfort.

Police detain three teenagers carrying sharp weapons in Pasar Minggu

Police in South Jakarta have detained three teenagers found in possession of sharp weapons, including a sickle and a corbek, on Jalan Raya Pasar Minggu. The youths, aged 15 and 16, were stopped by members of the public before being handed over to authorities. They are currently being held under the new Criminal Code, though no charges have yet been filed.

Puan Maharani Urges MPs to Maintain Decorum Ahead of 14 August Annual Session

House Speaker Puan Maharani has called on all members of parliament to maintain discipline and solemnity during the upcoming Annual Session and Joint Session on 14 August. The appeal follows public scrutiny of spontaneous expressions by legislators during the previous year's proceedings. Puan assured that members would be more introspective, particularly during the President's state address and the presentation of the 2027 State Budget.

E-Commerce Tax Implementation Likely to Be Postponed Again, Minister Purbaya Explains Why

Finance Minister Purbaya Yudhi Sadewa has indicated that the collection of income tax on e-commerce transactions may be delayed once more, prioritising economic conditions and public purchasing power. The policy, originally scheduled for 1 August 2026, was previously postponed to 1 November 2026. The government aims to allow citizens time to strengthen their income before the tax takes effect.

Indonesia streamlines licensing to speed up investment realization

Indonesia is accelerating investment realisation by implementing a deemed approval scheme that allows construction to begin before all permits are fully issued, cutting the investment cycle from up to five years. The reform, which already covers 287 business activities, is part of a broader push to attract Rp13,000 trillion in investment by 2029 to support 8 percent economic growth. Investment realisation in 2025 exceeded its target and contributed to job creation, with the government aiming for 2.5 million new jobs.

Agriculture Minister Partners with UNESA to Develop Soybeans and Curb Imports

Agriculture Minister Andi Amran Sulaiman has signed a memorandum of understanding with Surabaya State University (UNESA) to develop soybean seed production on 56 hectares of university land. The initiative aims to reduce national dependence on soybean imports, with the government providing free seeds and machinery and committing to buy back all the seeds produced. The collaboration is part of a broader strategy to link academic research directly with agricultural production.

Structured Coordination Key to Securing Indonesia's 81st Independence Day, Says Analyst

Political analyst Boni Hargens has stated that structured coordination between the National Police, the Indonesian Armed Forces, and the State Intelligence Agency is the main pillar in securing the 81st Independence Day celebrations. He emphasised that solid cross-sectoral coordination not only ensures short-term security but also strengthens Indonesia's democratic institutions. Hargens also reminded security forces to maintain a balance between security enforcement and respect for civil liberties.

Civil Society Urges RCEP Nations to Reject ISDS Clause for a Just Climate Transition

Over 70 Southeast Asian civil society organisations are urging RCEP member states to exclude the Investor-State Dispute Settlement (ISDS) mechanism from the upcoming 2027 review. They argue that ISDS provisions allow multinational corporations to sue governments over climate policies, potentially derailing clean energy transitions. The coalition warns that such clauses could force developing nations to pay massive compensation instead of funding a just transition away from coal.

KAI Offers 17% Ticket Discount for Independence Day, Gen Z Dominates Passengers

State-owned railway operator PT Kereta Api Indonesia (KAI) is offering a 17 per cent discount on commercial economy class tickets for travel on 17 August 2026 to celebrate the 81st anniversary of Indonesian independence. The initiative aims to encourage public transport use during the national holiday. Separately, KAI reported that passengers under 30, primarily from Generation Z, now account for 55 per cent of its customer base.

Toll Road in Indonesia Reaches 3,128.3 Kilometers, Investment Nearly 800 Trillion

Indonesia's total toll road length has reached approximately 3,128.3 kilometers, supported by an investment of nearly Rp 800 trillion. Public Works Minister Dody Hanggodo highlighted the critical role of maintaining trust and legal certainty in contracts between the government and toll road operators. He emphasised that any new policies must be discussed collaboratively, with existing agreements serving as the primary reference for both parties.

What Are Deciles? Differences Between Deciles 1-10, How to Check, and Their Link to Subsidised Fuel

The Indonesian government is reviewing a plan to restrict subsidised fuel purchases based on household welfare levels, potentially excluding households in deciles 9 and 10 from accessing subsidised Pertalite. Deciles are a statistical grouping that divides the population into ten tiers of relative welfare, from the lowest (decile 1) to the highest (decile 10). The scheme would redirect the wealthiest groups towards non-subsidised fuels like Pertamax, bringing renewed public attention to the decile system previously used mainly for social assistance programmes.

Immigration Non-Tax Revenue Reaches Rp6.54 Trillion, 76.81 Percent of Target

Indonesia's Directorate General of Immigration has recorded non-tax state revenue (PNBP) of Rp6.54 trillion as of 10 August 2026, achieving 76.81 percent of its annual target. The figure represents a 6.68 percent increase compared to the same period last year, driven primarily by visa services. The Director General expressed optimism that the full-year target of Rp8.519 trillion will be met, citing the typically high travel activity towards the year's end.

Kaesang to Contest Same Electoral District as Puan: It's Every Party's Right

PDIP Chairwoman Puan Maharani has responded to PSI Chairman Kaesang Pangarep's plan to run in the same Central Java V electoral district for the 2029 legislative election, stating it is the right of every political party to field candidates. Kaesang announced his intention to stand in the district, which includes Solo, where Puan has been a dominant vote-winner since 2009.

Police Target Other Suspects in Qur'an Memorisation Challenge for Alcohol Case

Jakarta police are pursuing additional suspects after a Qur'an memorisation challenge at a music festival sparked public outrage. Organisers and sponsor Newport have apologised, stating the activity was spontaneous and not part of the official programme.

Petitioners Challenge P2SK Law Article, Citing Threats to Law Enforcement and Equality

A group of petitioners has filed a judicial review with the Constitutional Court against Article 50A of the Financial Sector Development and Strengthening Law (UU P2SK). They argue the article grants excessive legal immunity to certain investors, potentially hindering anti-money laundering efforts and violating the constitutional principle of equality before the law. The panel of judges has advised the petitioners to clarify their legal standing and elaborate on the constitutional contradictions before resubmitting their revised application.

Hundreds of motorcycles caught in illegal parking crackdown in Cengkareng, West Jakarta

A joint task force in West Jakarta impounded 108 motorcycles found illegally parked in the City Park area of Cengkareng Timur. The operation, which involved 30 personnel from the transportation agency, public order officers, police, and military, was a direct response to public complaints about obstructed pavements and roads. Officials stated the crackdown aims to restore pedestrian access, ease congestion, and deter illegal parking fees.

Immigration-assisted village in Manokwari conducts first rice harvest

An immigration-assisted village in Manokwari, West Papua, has completed its first rice harvest on one hectare of land, yielding over five tonnes of dry grain. The initiative is part of a community empowerment programme that also educates residents on immigration law and the dangers of human trafficking. The programme aims to boost the local economy while protecting citizens from illegal recruitment and non-procedural travel.

South Korea, Indonesia highlight shared journey to independence

South Korea and Indonesia are commemorating their shared historical struggles for independence through a joint exhibition in Jakarta. The exhibition, featuring figures like Kim Koo and Soekarno, underscores the common values of freedom and cultural exchange between the two nations. Organisers hope the event will strengthen bilateral ties and reaffirm the importance of historical memory as a foundation for future cooperation.

Jakarta Government Evaluates Cycle Lanes: Some Unmaintained and Used by Other Vehicles

The Jakarta provincial government is evaluating the capital's cycle lanes after finding many are poorly maintained and occupied by other vehicles. Officials are gathering input from cycling communities and transport bodies before Governor Pramono Anung makes a final decision. The administration insists the review aims to improve safety and effectiveness, not to neglect the legal mandate to provide facilities for cyclists.

Digital Social Protection Reaches 2.9 Million Families, Minister Reviews Trial in Sumedang

Minister of State Apparatus Empowerment and Bureaucratic Reform Rini Widyantini has reviewed the Perlinsos Digital trial in Sumedang, West Java, where 2.9 million families are now registered across 43 pilot regions. The programme aims to improve the accuracy of social protection distribution by allowing citizens to register independently and check their eligibility. The trial is set to run until the end of August 2026, ahead of a planned nationwide rollout later that year.

Supporting Prabowo's Programme, PNM Customer Loan Interest Drops to 8%

The Indonesian government has finalised a policy to lower loan interest rates to 8% for customers of PNM Mekaar, a state-owned enterprise programme. The move, directed by the President, aims to ease the burden on 14 million pre-prosperous women and strengthen the people's economy. The new rate, down from an average of 20%, is scheduled to take effect in early September.

26 Tamalaki Indigenous Organisations Support PT Vale Investment in Wonua Mekongga

Twenty-six indigenous community organisations in Kolaka, Central Sulawesi, have declared their full support for the continuation of PT Vale Indonesia's investment in the Wonua Mekongga region. The groups emphasised the importance of maintaining a stable investment climate for local economic benefit, while also presenting three key aspirations to the company. PT Vale welcomed the support and reiterated its commitment to open communication and long-term socio-economic development in the area.

Sumatran Tiger Trapped Near School in Agam's Palupuh

A Sumatran tiger was successfully evacuated after entering a trap set by the West Sumatra BKSDA near a school in Palupuh, Agam. The operation followed reports of the tiger preying on livestock in close proximity to residential areas and educational facilities. The animal is now undergoing health checks at a conservation institution before further action is determined.

Economist: Financial Literacy and Deepening Must Go Hand-in-Hand to Build Financial Readiness

A UOB economist has highlighted that Indonesia's low private credit penetration and market capitalisation indicate significant room for financial deepening, but warns this must be paired with stronger financial literacy. He cautioned that rising consumption among the youth, without responsible financial management, could lead to increased debt dependency. The government has launched programmes like AKSI KLIK and LIKE IT 2026 to bridge the gap between financial inclusion and literacy.

BAKTI Internet shields Central Sulawesi farmers from middlemen scams

Digital infrastructure provided by BAKTI in Parigi Moutong, Central Sulawesi, has empowered remote farming communities by granting them access to real-time commodity prices. Previously isolated and deceived by middlemen, farmers can now verify market rates and secure better deals for their produce. The connectivity has also enabled local MSMEs to market their goods via social media, boosting the rural economy.

InfraNexia Promotes Equitable Internet Access Through Collaboration at APJII's 30th Anniversary

PT Telkom Infrastruktur Indonesia (InfraNexia) is reinforcing its commitment to national connectivity by collaborating with the Indonesian Internet Service Providers Association (APJII) during its 30th-anniversary event. The company aims to strengthen the digital infrastructure ecosystem and expand internet access across Indonesia through infrastructure sharing and connectivity services. This synergy is seen as a crucial foundation for accelerating internet penetration and broadening the benefits of digital transformation to various regions.

BAKTI Infrastructure Eases Internet Access for East Flores Residents

The construction of telecommunication infrastructure by Indonesia's BAKTI has significantly improved internet access for residents of East Flores, East Nusa Tenggara. Previously, locals and civil servants had to travel kilometres or even climb trees to obtain a signal. The initiative includes six new Base Transceiver Stations and 262 internet access points in government offices, villages, schools, and health facilities.