Indonesian Political, Business & Finance News

Archive: 12 August 2026

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Jakarta Provincial Government Raises Regional Bond Issuance to IDR 5.6 Trillion

The Jakarta Provincial Government has increased its planned regional bond issuance to IDR 5.6 trillion, to be rolled out in two phases during 2027 and 2028. The funds are earmarked for priority infrastructure projects addressing congestion, flooding, health, and education. Land acquisition costs will not be financed through the bond scheme.

Economy Slows, MSME Ecosystem Needs Strengthening from Upstream to Downstream

Weakening purchasing power and a global economic slowdown are pressuring Indonesia's micro, small, and medium enterprises (MSMEs). Stakeholders argue that a connected ecosystem involving government, universities, and markets is essential to sustain the sector, which is the backbone of the national economy. Policy innovations and integrated data are seen as critical to moving beyond mere business growth towards improved quality and resilience.

Minister to Evaluate Discrepancy Between KMP Putri Yasmin Manifest and Evacuation Data

Transport Minister Dudy Purwagandhi will investigate a significant discrepancy between the passenger manifest of the ferry KMP Putri Yasmin and the number of people evacuated after it caught fire off Lombok. The manifest listed 114 passengers, but search and rescue teams evacuated 173 individuals. The minister suspects passengers were added after the manifest was finalised, highlighting a critical gap in safety and accountability procedures.

Woman in Lombok Arrested for Pawning Fake Gold, Cooperative Loses Rp 780 Million

A woman in Central Lombok has been arrested for allegedly defrauding a sharia cooperative of an estimated Rp 780.85 million by using imitation jewellery as collateral for loans. The suspect, identified as S, is accused of pawning fake gold items under her own identity and those of others between 2023 and January 2026. Police have seized 108 pieces of jewellery, dozens of loan agreements, and mobile phones as evidence in the ongoing investigation.

Pakistan confirms death of three citizens in Houthi attack

Pakistan's Deputy Prime Minister confirmed three Pakistani nationals were killed and another injured in a Houthi attack on a commercial vessel in the Red Sea. The government condemned the assault as a violation of international law and a threat to maritime security. Pakistani authorities are coordinating with Saudi Arabia and the internationally recognised Yemeni government to repatriate the deceased and assist the injured.

Trade Ministry Readies Solutions as Egg Prices Plunge at Farm Level

The Indonesian Trade Ministry is implementing several measures to address the low price of eggs and chicken at the farm level, which contrasts with higher consumer prices. Strategies include extending a subsidised feed programme, leveraging the Free Nutritious Meal initiative to boost demand, and facilitating inter-regional trade to channel surplus supply to deficit areas in eastern Indonesia.

Not Just Budget Savings, Here's Why the Top Two Income Deciles Will Be Banned from Buying Pertalite

The Indonesian government is preparing regulations to prohibit the wealthiest households, classified as deciles 9 and 10, from purchasing subsidised Pertalite fuel. The policy aims to ensure that energy subsidies are targeted more accurately, as data shows a significant portion of subsidised fuel is currently consumed by higher-income groups. The government is targeting implementation before 2027.

PTPN Group to Develop Integrated Cassava Downstream Ecosystem in Lampung

State-owned plantation holding PTPN III is spearheading an integrated cassava development project in Lampung, targeting 10,000 hectares of cultivation. The initiative spans from upstream farming to downstream processing, including bioethanol production, aiming to bolster national food and energy security. The project involves collaboration with 11 strategic partners and is designed to create economic opportunities for local farmers and businesses.

Minister Applauds Swift Evacuation of Burning Ferry KMP Putri Yasmin

Transport Minister Dudy Purwagandhi praised the rapid response of a joint SAR team that evacuated 172 people from the KMP Putri Yasmin after it caught fire in the Lombok Strait. One female passenger died in the incident, while 12 others received hospital treatment. The minister stated the vessel was deemed seaworthy and that the cause of the fire, including reports of an explosion from a truck, will be investigated by the KNKT.

Synergy Between Police, Military and Intelligence in Securing 81st Independence Day Deemed Key to Stability

A political analyst has praised the structured coordination between the Indonesian National Police, the Indonesian National Armed Forces, and the State Intelligence Agency in safeguarding the 81st Independence Day celebrations. The synergy is considered crucial for maintaining stability and ensuring early detection of potential security threats. The analyst also stressed the importance of balancing security measures with the protection of civil liberties to uphold Indonesia's democratic achievements.

Pramono Anung Emphasises Importance of Fulfilling Citizens' Basic Food Rights

Jakarta Governor Pramono Anung Wibowo stressed the importance of fulfilling basic food rights for all citizens, stating it determines human resource quality. He also highlighted the need for a regulation integrating food availability, affordability, and utilisation, alongside a 30-year environmental protection plan to balance economic growth and sustainability.

North Jakarta Police Arrest Creators of 'Recite Quran for Alcohol' Challenge

Police in North Jakarta have arrested two individuals suspected of blasphemy after they allegedly challenged festival-goers to recite Quranic verses in exchange for alcohol. The incident occurred during The Sounds Project music festival, prompting a swift investigation following a public complaint. Authorities have not ruled out the possibility of further arrests as the investigation continues.

US Companies Flock to Chinese AI Products, Here's Xi Jinping's Response

Chinese AI models are rapidly gaining adoption among US companies, accounting for 63% of token usage on OpenRouter in early July 2026. President Xi Jinping has called for China to play a larger role in shaping global AI governance while emphasising the need for human control and international cooperation. The trend is driven by competitive performance and significant cost savings, though it faces increasing regulatory scrutiny from both Beijing and Washington.

Finance Minister Purbaya: Top Income Deciles Cannot Buy Pertalite, Must Use Pertamax

The Indonesian government is preparing a scheme to restrict the purchase of subsidised Pertalite fuel for the wealthiest households. Finance Minister Purbaya Yudhi Sadewa stated that those in the top two income deciles will be required to switch to non-subsidised fuels like Pertamax. The policy aims to ensure that the hundreds of trillions of rupiah in fuel subsidies are better targeted.

China's Pinglu Canal, linking river to sea, begins vessel traffic trials

The Pinglu Canal in southern China has commenced vessel traffic trials ahead of its planned opening in September, marking a milestone for the nation's first large-scale river-sea connector project. The 134.2-kilometre waterway is designed to accommodate ships up to 5,000 tonnes and is expected to significantly reduce logistics costs while strengthening trade links between China's western interior and Southeast Asia. The trials will test navigation under various conditions, including night sailing and potential hazards such as flooding and strong winds.

TNI Command Clarifies Allegations of Intimidation Against Church Congregation in Puncak Jaya

The Indonesian Military's Habema Operations Command has denied allegations that its personnel intimidated a Catholic congregation in Puncak Jaya, Papua Tengah. The military stated that expressions of gratitude from residents stemmed from voluntary assistance in renovating a local church and primary school, not from coercion. The clarification follows a protest by a Catholic youth group, which claimed armed officers forced parishioners to thank them for the renovation work.

PTRO Secures Rp9.3 Trillion Coal Mining Contracts

PT Petrosea Tbk (PTRO) has secured two new coal mining service contracts worth an estimated Rp9.3 trillion from subsidiaries of PT Singaraja Putra Tbk (SINI). The life-of-mine contracts cover overburden removal and coal extraction at two sites in Central Kalimantan. The larger of the two deals, valued at Rp7.7 trillion, involves a project projected to generate US$2.6 billion in total revenue for SINI.

Man Sets Fire to Diskominfo Office in Kutai Kartanegara After Being Mocked

A 24-year-old man in East Kalimantan has been arrested for setting fire to a government office after allegedly enduring persistent ridicule. The suspect, identified as MFA, is accused of deliberately igniting a meeting room on the third floor of the Kutai Kartanegara Communication and Information Office. Police stated the man was driven by resentment after colleagues repeatedly took candid photos of him and used them as material for mockery.

High Waves Batter Yogyakarta's Southern Coast

High waves reaching up to four metres have struck the southern coast of the Special Region of Yogyakarta (DIY), causing damage to fishing boats and coastal buildings. The Meteorology, Climatology, and Geophysics Agency (BMKG) has issued an early warning for the hazardous conditions, effective until Friday. Authorities are urging fishermen, tourists, and residents to avoid shoreline activities and remain vigilant.

Two Ways Israeli Citizens Can Enter Indonesia, According to Immigration

Indonesia's Directorate General of Immigration has outlined two mechanisms for Israeli nationals to enter the country. The primary route involves a 'calling visa' requiring multi-agency verification, while the alternative is entry using a passport from another eligible country. The process underscores the strict controls in place, given that Israel is on Indonesia's calling visa list.

iCAR Targets 30 Dealerships Across Indonesia by 2026

Chinese automaker iCAR is aggressively expanding its presence in Indonesia, aiming to establish up to 30 dealerships by the end of 2026. The company recently inaugurated a new outlet in Jakarta's SCBD business district as part of its commitment to providing easier access to its range of new energy vehicles. iCAR, a sub-brand of Chery, currently offers the fully electric V23 and the REEV hybrid V27 in the Indonesian market.

Electric Cars Increasingly Dominant, Geely Becomes New King of the Road with 197,500 Units Sold

Geely's Xingyuan hatchback has become China's best-selling car, with nearly 197,500 units sold in six months, overtaking rivals Tesla and BYD. The data highlights the strong consumer shift towards affordable electric vehicles, which now account for nearly two-thirds of new passenger car sales in the country. Despite the surge in electric vehicle adoption, China's overall passenger car market is under significant pressure, with total sales dropping by over 20% in the first seven months of the year.

ASDP Supports Evacuation and Handling of KMP Putri Yasmin Passengers

State-owned ferry operator PT ASDP Indonesia Ferry is assisting in the evacuation of passengers from the KMP Putri Yasmin after a fire broke out on the Padangbai–Lembar route. The company has deployed its vessel KMP Portlink II to rescue 35 people and is coordinating with authorities to ensure evacuees receive proper care. ASDP has also prepared port facilities, including medical aid and security, to support the ongoing emergency response.

Ciniru Landfill Fire: Strong Winds Hinder Firefighting Efforts in Kuningan

A major fire broke out at the Ciniru landfill in Kuningan Regency, West Java, early on Wednesday morning. Strong winds caused the blaze to spread rapidly across waste mounds, with thick smoke hampering the efforts of combined emergency services. No casualties have been reported, but the incident has disrupted waste disposal activities and poses a potential health risk to nearby residents.

Puan Maharani on Kaesang's Plan to Run in 2029 Legislative Election in Her Electoral District: It's Every Party's Right

PDIP Chair Puan Maharani has responded to PSI Chairman Kaesang Pangarep's announcement that he will contest the 2029 legislative election in the Central Java electoral district, stating that nominating candidates is the prerogative of every political party. Kaesang, the youngest son of former President Joko Widodo, confirmed his candidacy for the House of Representatives from Central Java V during a visit to Solo. He urged party cadres to remain united and avoid internal conflict ahead of the 2029 polls.

China's Xinjiang Enhances Payment Services for Foreign Tourists

China's Xinjiang Uighur Autonomous Region has significantly upgraded its payment infrastructure for international visitors, leading to a 45 percent year-on-year surge in mobile payment usage in the first half of 2026. The initiative allows tourists to use their home e-wallets directly and has expanded foreign bank card acceptance to 58,500 businesses. The measures are part of a broader national strategy to boost openness and attract more international travellers and business visitors.

Nadiem Makarim: The Cruelty of Prosecution and Manipulation of Facts in the Former Jampidsus Era

Former Education Minister Nadiem Makarim has accused the previous leadership of the Attorney General's Office for Special Crimes of cruel prosecution and manipulating facts in his Chromebook corruption case. Speaking at the Jakarta High Court, he claimed the Rp809 billion in transactions cited in the charges were corporate matters handled by GoTo and that he never personally received the funds. Makarim argued the transaction was unrelated to the Chromebook project and should not be used to demand a replacement payment from him.

Dumai Police Patrol Vital National Assets Ahead of 81st Independence Day

Dumai Police have intensified security patrols at key national infrastructure sites in Riau, including the Pertamina oil refinery, Pelindo port, and bonded zones. The operation aims to deter criminal activity and ensure public safety in the lead-up to the 81st anniversary of Indonesia's independence. The patrols also covered public facilities such as petrol stations and the regional public hospital.

Gold Traceability System Needs Improvement, Here's Why

Indonesia's Ministry of Energy and Mineral Resources is pushing for an improved gold traceability system to combat illegal mining and ensure all circulating gold has a clear, accountable source. The ministry has identified indications of illegally mined gold entering jewellery stores, prompting calls for strengthened upstream-to-downstream oversight to protect state revenue. With national production reaching only 17 tonnes in the first half of 2026, the government is also facilitating the legalisation of artisanal miners and monitoring major producers facing operational hurdles.

Immigration Develops 'Digital Fence' to Monitor Border Crossings

Indonesia's Directorate General of Immigration is developing a 'digital fence' concept using locally made drones to strengthen surveillance along its vast land borders. The initiative aims to monitor unofficial crossing points and track movement in areas where physical patrols are impractical. The system will feed data into a central command centre to enable early detection of anomalies and potential violations.

US-backed envoy reveals BoP goal: No more October 7, omits mention of Gaza genocide

Nickolay Mladenov, an envoy for the US-backed Board of Peace, stated that full implementation of a new peace proposal is the only guarantee against future attacks on Israel, whilst completely omitting any reference to Israel's brutal military campaign in Gaza. The plan, described as 'historic' by President Trump, conditions Israeli withdrawal on the total disarmament of Hamas. Mladenov's remarks to Israeli media ignored the fact that Israel frequently deems children and women in Gaza as 'real threats'.

Hanura's Breakthrough for Its Legislative Candidates in the 2029 Election: Electability and Eligibility to Be Monitored

The Hanura Party is introducing a survey-based evaluation mechanism for its legislative candidates ahead of the 2029 General Election. The party's Task Force will periodically monitor electability and the likelihood of candidates winning seats. The results will be used to map potential electoral districts and form the basis for rewards or sanctions for prospective candidates.

Puan Maharani Responds to Kaesang's Plan to Contest Same Electoral District in 2029

House Speaker Puan Maharani has stated that nominating candidates in any electoral district is the right of every political party, responding to Kaesang Pangarep's announcement that he intends to run in the same Central Java district as her in the 2029 legislative election. The response echoes that of fellow PDIP official Ganjar Pranowo, who affirmed that every citizen has the right to participate in government. Kaesang, Chairman of the Indonesian Solidarity Party, announced his plan to contest the Central Java V electoral district, which includes Solo, during a party meeting.

Top 9th and 10th Decile Groups Barred from Buying Pertalite to Ensure Targeted Subsidies

Finance Minister Purbaya Yudhi Sadewa has announced a policy restricting the purchase of subsidised Pertalite fuel for the wealthiest households. The move, which targets the 9th and 10th decile groups, aims to address parliamentary concerns over subsidy leakage. The government will implement the restriction gradually to monitor its economic impact.

UOB Economist: Six Reform Agendas Pave Way for 8 Percent Growth

ASEAN Economist at UOB, Enrico Tanuwidjaja, has outlined six key structural reform areas that could propel Indonesia's long-term economic growth towards 8 percent. He argues that the current growth rate of around 6 percent is well below the country's potential if domestic market size, digitalisation, and SME integration are fully leveraged. The economist stressed that these reforms must be executed rapidly and in parallel, rather than partially, to achieve the ambitious target.

Finance Minister asks BKPM to prepare regulation for production forest utilisation in Aceh

Finance Minister Purbaya Yudhi Sadewa has requested the Ministry of Investment to resolve regulatory hurdles preventing a pine resin company from utilising a production forest in Aceh Jaya. The issue stems from confusion over which authority can issue permits for a 44,715-hectare area previously held under a revoked concession. Resolving this case is expected to set a policy precedent for similar situations involving former concession lands.

Indonesia-South Korea Photo Exhibition Aims to Inspire Positive Spirit

A collaborative photo exhibition between Indonesia and South Korea, titled 'My Wish, Our Wish: Road to Freedom', has opened in Jakarta, aiming to foster a positive spirit and reflect on the meaning of independence. The exhibition features archival images of Korean independence activist Kim Koo and the Proclamation of Indonesian Independence, with the Indonesian Culture Minister Fadli Zon highlighting its role in reviving national history. Organisers hope the cross-cultural display will serve as a space for dialogue and inspiration for the younger generation about freedom and sacrifice.

How to Withdraw BPJS Employment JHT Funds Without Resigning in 2026

Participants of Indonesia's BPJS Ketenagakerjaan can partially withdraw their Old Age Security (JHT) funds without waiting for retirement or resignation, under specific conditions. A 10% withdrawal is permitted for general retirement preparation, while a 30% withdrawal is allowed for home purchases, provided the participant has been a member for at least 10 years. The process can be completed online through the Lapak Asik portal or the JMO mobile application.

Amnesty: Death Penalty for Corruptors Not a Deterrent, Government Should Focus on Asset Forfeiture Bill

Amnesty International Indonesia has urged the government to abandon the death penalty for corruption and instead prioritise the enactment of the Asset Forfeiture Bill. The organisation argues there is no evidence that capital punishment deters graft, citing Transparency International data from countries like China and Vietnam. The group also called for a revision of laws still containing the death penalty, describing it as a discriminatory colonial legacy.

Defence Minister checks readiness of Yonif TP 899 to support security and food for residents

Defence Minister Sjafrie Sjamsoeddin inspected the readiness of the 899th Territorial Development Infantry Battalion (Yonif TP) in Depok, West Java. The minister emphasised the unit's dual role in providing security and contributing to regional development, including food security. He urged soldiers to maintain professionalism and uphold the military code of conduct while serving the community.

Puan Maharani Discusses DPR's Battle Against Hoaxes with Top Youth Parliament Participants

House Speaker Puan Maharani addressed the persistent issue of disinformation targeting the Indonesian House of Representatives (DPR) during a meeting with top Youth Parliament participants. She cited the Asset Forfeiture Bill as a prime example of a policy distorted by hoaxes, clarifying that the DPR is actively seeking public input. The session also highlighted the complexities of the legislative process and the DPR's commitment to transparency.

To Avoid 'Dancing Parliament' Repeat, 2026 MPR Session to Play Only National Songs

Organisers of Indonesia's 2026 MPR Annual Session have banned songs that could provoke dancing among lawmakers, limiting music to national and regional anthems to ensure a solemn state event. The decision follows widespread public outrage and mass protests triggered by legislators dancing at the 2025 session. House Speaker Puan Maharani stated that members have introspected and will maintain greater decorum during this year's proceedings.

Finance Minister to Coordinate with Transportation Ministry to Address Port Service Tariff Disparities

Finance Minister Purbaya Yudhi Sadewa has pledged to coordinate with the Ministry of Transportation to resolve disparities in lift-on/lift-off (LoLo) service tariffs for empty containers, which are significantly higher outside port areas. The issue was raised by the National Board of Indonesian Transport Users (Depalindo), which highlighted a lack of regulatory clarity and additional opaque charges. The government aims to standardise governance and tariffs to improve business certainty and ease pressure on the rupiah.

Toll Payment Without Stopping Tested Again, Minister Dody Reveals Location

The Indonesian government is preparing to conduct further trials of the Multi Lane Free Flow (MLFF) toll payment system within the next few weeks. Minister of Public Works Dody Hanggodo stated that the trials will take place in Bali and another location in Java, following a previous inconclusive test. The government aims for these new trials to provide a definitive basis for deciding whether to adopt the system nationwide.

Tourism Ministry and Danantara Strengthen Collaboration to Boost National Tourism

Indonesia's Ministry of Tourism and the Danantara Investment Authority have formalised a strategic partnership to accelerate the development of the national tourism sector. The collaboration will focus on destination development, infrastructure, and investment ecosystems, aiming to increase both the quality of visitors and their length of stay. This initiative seeks to build on the sector's resilience, which generated US$18.27 billion in foreign exchange and supported 25.91 million jobs in 2025.

Danantara CTO Details Challenges in Semiconductor and Critical Mineral Processing

Danantara's Chief Technology Officer has identified technology as the primary obstacle in Indonesia's mineral downstreaming efforts, particularly for semiconductor-grade materials. The sovereign wealth fund is pursuing strategic partnerships with universities to build research and development capabilities and close the technology gap. This initiative has received backing from President Prabowo, who has engaged thousands of academics to collaborate on industrialisation projects.

Several SOEs Record Profit Growth in First Half of 2026, Here's the List

A number of Indonesian state-owned enterprises (SOEs) have reported significant profit growth in the first half of 2026 compared to the same period last year. The strongest performers include PT Timah, with an 804.7 per cent surge in net profit, and PT Pupuk Indonesia, which saw a 253 per cent increase. An economist noted that the ongoing streamlining of SOEs under Danantara is expected to further boost the efficiency and performance of these state companies.

Two Suspects Arrested for Alleged Blasphemy at Ancol Music Festival

Police in North Jakarta have arrested two individuals suspected of blasphemy during a music festival in Ancol. The suspects allegedly challenged attendees to recite a Quranic verse in exchange for alcoholic drinks. Authorities have upgraded the case to a formal investigation following a report from the Indonesian Ulema Council (MUI).

Puan Maharani Assures MPs Will Be More Solemn at Joint Session: We Will Introspect

House Speaker Puan Maharani has pledged that members of parliament will conduct themselves with greater solemnity during the upcoming MPR Annual Session and DPR-DPD Joint Session. She stated that the spontaneous dancing seen at last year's event occurred after the formal proceedings had concluded and was merely an expression of joy for Indonesia's 81st independence anniversary. The DPD's protocol bureau has also evaluated the event's musical programme to prevent a repeat of the incident.

Home Affairs Minister Urges Sumatra's Forkopimda to Remain Solid in Safeguarding Economic Growth

Home Affairs Minister Tito Karnavian has called on regional leadership coordination forums across Sumatra to strengthen synergy in order to maintain stability and boost economic growth. He stressed that solid cooperation among the elements of Forkopimda is key to resolving local issues quickly and effectively. The Minister also highlighted the need to control inflation, particularly food prices, to prevent potential security and political disturbances.