Indonesian Political, Business & Finance News

Archive: 13 August 2026

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BRI Distributes Rp103.81 Trillion in KUR Loans by End of June 2026, Supporting Danantara's Economic Agenda

Bank Rakyat Indonesia (BRI) has channelled Rp103.81 trillion in People's Business Credit (KUR) to 2 million debtors by the end of June 2026, with a focus on productive sectors such as agriculture and trade. The initiative, part of the Danantara ecosystem, aims to empower MSMEs and strengthen the national economic foundation. BRI also reported that 487,000 KUR debtors have successfully graduated to commercial financing, representing 50.71% of its 2026 target.

Rupiah Edges Slightly Stronger This Afternoon, US Dollar Parks at Rp17,860

The Indonesian rupiah snapped a two-day losing streak to close marginally higher against the US dollar on Thursday. The modest recovery was supported by a weaker greenback after US inflation data showed a slowdown, reducing the likelihood of imminent Federal Reserve rate hikes. However, the rupiah still faces potential headwinds from foreign capital outflows following MSCI's August index rebalancing.

Manpower Ministry: Skill Mismatch Main Factor Behind High Educated Unemployment

Indonesia's Manpower Ministry has identified the mismatch between workforce competencies and industry needs as the primary cause of high unemployment among university graduates, which reached over one million people in May 2026. Officials also pointed to slow formal job growth, rapid technological change outpacing education, and a lack of soft skills and certifications. The ministry is working to align curricula with industry requirements and expand practical work experience for students.

KPK summons 10 witnesses after raids in five regions, seizes 1.3 kg of gold

Indonesia's Corruption Eradication Commission (KPK) has summoned 10 witnesses following a series of raids across five regions, where investigators seized 1.3 kilograms of gold and Rp100 million in cash. The operation is part of an ongoing investigation into a tax restitution corruption case involving the former head of the Banjarmasin Medium Tax Office. The case centres on a Rp48.3 billion restitution claim that allegedly involved bribery payments to tax officials.

Economist Says Two Sectors Could Boost Indonesia's Economy

A leading economist has identified manufacturing and plantations as the two key sectors capable of significantly boosting Indonesia's economic growth. Andry Asmoro of Bank Mandiri noted these sectors are currently underperforming compared to the national average. Focusing on them could create jobs, strengthen the rupiah, and raise per capita income.

Jakarta LRT Velodrome-Manggarai route nearly complete

The Velodrome-Manggarai LRT route in Jakarta is 97.99 percent complete and is scheduled for inauguration on 26 August 2026, according to Governor Pramono Anung. The 12.2-kilometre line, representing an investment of Rp12.1 trillion, will connect North, East, South, and eventually Central Jakarta, with final signalling and system integration tests currently underway.

Haedar Nashir Delivers National Oration at Muhammadiyah Press and Literacy Day

Muhammadiyah Chairman Haedar Nashir emphasised the vital role of the press in providing truthful and balanced information to guide society during a national oration in South Tangerang. He highlighted the complex challenges facing modern journalism, including its intersection with industry and politics, while urging media to maintain professionalism and prioritise the public interest. Haedar also called on the nation's elite to embrace openness and view media criticism as a constructive mechanism for national improvement.

Muhammadiyah Chief: Press Criticism Not a Threat, Elites Must Be Open

Muhammadiyah Chairman Haedar Nashir has called on government elites to view press criticism as constructive input rather than a threat, emphasising the media's vital role in providing balanced information and diverse perspectives for the nation's progress. He also urged journalists to uphold ethics and prioritise the public interest despite the complex challenges posed by media commercialisation and political pressures.

Repeated Travel Agent Issues Threaten Labuan Bajo's Tourism Reputation

A series of incidents involving problematic travel agents in Labuan Bajo, including a fraud case against six Italian tourists, is raising serious concerns about the destination's image. Local authorities and tourism observers are calling for stricter oversight of tour operators and travel agents to restore confidence. The focus is on ensuring business legality, transaction transparency, and service reliability to protect the overall visitor experience beyond the natural beauty of Komodo National Park.

LRT Jakarta Velodrome-Manggarai to Operate from 05:00 to 24:00 WIB

Jakarta Governor Pramono Anung has announced that the LRT Jakarta Phase 1B Velodrome-Manggarai route will operate from 05:00 to midnight, mirroring the KRL Commuter Line schedule. The new line is intended to become a backbone of the capital's public transport system, enhancing intermodal integration. The governor also noted plans to extend the network to Jakarta International Stadium and Halim, and to coordinate with the Ministry of Transportation to optimise Manggarai Station as a major hub.

Australia Sets Minimum Wage for Delivery Riders at A$31.30 per Hour, Effective 17 August

Australia's Fair Work Commission has established a new minimum wage for food and grocery delivery riders, set at A$31.30 per hour, significantly above the national minimum. The landmark ruling, effective 17 August 2026, also mandates basic accident insurance for workers and is being hailed as one of the world's most comprehensive protections for gig economy workers. The development comes as Indonesia's government is reportedly drafting a similar regulation for app-based workers, following a recent increase in driver commission rates.

Rancabungur Sub-District Head Denies Instructing Intimidation of Barber Over Flag

The head of Rancabungur sub-district, Dita Aprilia, has denied instructing anyone to intimidate a barber who was verbally abused for not displaying the Indonesian flag. She clarified that the individual who confronted barber Nur Hidayat was not a sub-district employee and that the flag-flying request was merely an appeal. The incident has sparked public debate over the enforcement of patriotic symbols.

Ahead of 81st Independence Day, Qodari Urges Public to Wisely Digest Social Media Information

Head of the Government Communication Agency Muhammad Qodari has called on Indonesians to remain calm and critically evaluate information circulating on social media ahead of the 81st Independence Day celebrations. He assured the public that national security remains stable and under control, with anticipatory measures in place to ensure peaceful commemorations. Qodari also emphasised the government's commitment to transparent, fact-based communication while respecting citizens' constitutional right to express their opinions peacefully.

President Prabowo Invites Eight Special Guests to MPR Annual Session on 14 August

President Prabowo Subianto has personally invited eight special guests, including students and beneficiaries of government programmes, to attend the MPR Annual Session on 14 August 2026. House Speaker Puan Maharani confirmed the session was moved from the traditional 16 August date to a working day, as the original date falls on a Sunday. The event will feature the President's speech on the 2027 State Budget Draft and its Financial Note.

Government Issues Regulation for KPPS, Credit for Underprivileged Women at 8% Interest

The Indonesian government has officially issued a regulation establishing the Kredit Perempuan Prasejahtera (KPPS) scheme, providing micro-loans to underprivileged women at a flat interest rate of 8% per annum. The programme, which offers loans up to IDR 15 million without additional collateral, aims to significantly reduce the financing burden for ultra-micro businesses, which previously faced rates around 24%. The initiative includes mandatory empowerment services such as financial management training and entrepreneurship mentoring, targeting up to 9.16 million women entrepreneurs nationwide.

Fraudsters Create Fake KPK Vests to Swindle Elderly Woman in South Tangerang

Police in South Tangerang have arrested two men who impersonated anti-corruption officials to defraud a 70-year-old woman. The suspects, one posing as a former KPK detainee, fabricated a story about needing funds to release seized assets worth billions of rupiah. The victim was locked in a bathroom while the perpetrators fled with her valuables and car.

UN: Violence in Sudan Continues to Threaten Civilian Safety

The United Nations has warned that ongoing violence in Sudan is causing mounting civilian casualties and mass displacement. Clashes in Blue Nile state killed over 20 civilians, while drone attacks in North Kordofan are driving thousands more to flee. The UN is urging donors to boost funding, as the humanitarian appeal for Sudan remains only 41 per cent funded.

Labour Coalition to Expose Political Parties Not Serious About Manpower Bill

A coalition of Indonesian labour unions has threatened to publicly name political parties they deem unserious about deliberating the Manpower Bill. The unions claim some parties have shown strong commitment while others lack even a draft proposal. The bill is considered a key legacy of President Prabowo Subianto's administration.

Growing Suspicion: Sutrimo's Belongings Allegedly Missing When Body Handed Over to Family

The death of Sutrimo outside a clinic in South Jakarta has deepened in mystery after police confirmed his personal belongings were not returned to his family when his body was handed over. The family has filed a police report citing this and other irregularities in the sequence of events. Polda Metro Jaya has upgraded the case to a criminal investigation and is awaiting forensic results following an exhumation.

Indonesian Students Win e-ICON World Contest with Hugrow App

Two Indonesian students from EcoSciences Tech School have won first place at the 16th e-ICON World Contest in South Korea. Their winning application, Hugrow, is designed to help families improve communication and support mental health through habit building and well-being tracking. The team collaborated with South Korean peers and presented their solution to a panel of judges from academia and industry, including Samsung Electronics.

House of Representatives Receives Labour Representatives to Discuss Manpower Bill

The leadership of Indonesia's House of Representatives (DPR), along with Commission IX and the Legislation Body, held an audience with labour union leaders to gather input on the deliberation of the Manpower Bill. The meeting took place at the Parliament Complex in Senayan, Jakarta, on Thursday. Key figures present included House Deputy Speakers Sufmi Dasco Ahmad, Cucun Ahmad Syamsurijal, and Saan Mustopa, as well as prominent labour leaders such as Jumhur Hidayat, Rieke Diah Pitaloka, and Said Iqbal.

Norway's SWF Posts Record US$184 Billion Profit in Six Months

Norway's sovereign wealth fund, Norges Bank Investment Management, reported a record profit of over US$184 billion in the first half of 2026, driven by a rally in Asian technology stocks. The fund, valued at US$2.34 trillion, achieved a 9.4% return, with significant holdings in Nvidia, Apple, and a newly disclosed stake in SpaceX. Despite the strong performance, CEO Nicolai Tangen warned of market volatility and the historical difficulty of preserving such large financial wealth indefinitely.

Norway's Sovereign Wealth Fund Posts Record US$184 Billion Profit in Six Months

Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), reported a record profit of over US$184 billion in the first half of 2026, driven by a rally in Asian technology stocks. The fund, valued at approximately US$2.34 trillion, achieved a 9.4% return, with its CEO highlighting the strong performance of semiconductor shares. However, NBIM cautioned about market volatility and the historical difficulty of preserving large financial wealth over the long term.

PLN Energises 240 kVA Connection to Support UKDW Sedayu Hospital Operations

State electricity firm PLN has energised a 240,000 VA medium-voltage connection for UKDW Sedayu Hospital in Bantul, Yogyakarta, to ensure reliable power for its 24-hour medical services. The initiative, framed as part of Indonesia's Independence Month, underscores PLN's commitment to bolstering public service infrastructure. The utility highlighted that uninterrupted electricity is critical for operating essential medical equipment and supporting the hospital's continuous patient care.

President Prabowo Reviews National Electric Motorcycle Ecosystem in Cikarang

President Prabowo Subianto visited the production facility of PT Ilectra Motor Group in Cikarang to inaugurate a national electric motorcycle ecosystem. The initiative aims to bolster downstream industry, enhance domestic manufacturing and supply chains, and reduce dependency on fossil fuels. The project involves multiple state entities and is expected to create jobs while supporting energy security.

Bulog Distributes 1,184 Tonnes of Rice to 39,472 Beneficiaries in Cimahi

State logistics agency Bulog has commenced the distribution of 1,184.16 tonnes of government rice reserves to 39,472 beneficiaries in Cimahi, West Java. The allocation covers the July, August, and September 2026 periods, with each recipient receiving 30 kilograms. The distribution is targeted at households in the lowest four income deciles based on the National Socio-Economic Data registry.

President University Opens Batavia Campus, Bringing International Education to Jakarta's Business Heart

President University has inaugurated its new Batavia Campus in Jakarta's Central Business District, aiming to provide internationally standardised higher education integrated with the industrial and business ecosystem. The campus will initially offer three programmes—Management, Informatics, and Communication Studies—all taught in English to prepare graduates for the global workforce. The university highlights its strong industry links and portfolio-building curriculum, noting that over half of its graduates secure job offers before completing their studies.

Ten Garuda Bridges in Situbondo Completed and in Use by the Community

Ten Merah Putih Garuda bridges in Situbondo, East Java, have been completed and are now operational, improving access for local residents. The bridges are part of a national infrastructure programme championed by President Prabowo Subianto, with a total of 36 locations proposed across the district. The initiative highlights collaboration between the military, police, and local government to deliver essential public works.

Koffiku Packages Indonesian Archipelago Coffee into Premium Instant Products

Surabaya-based SME Koffiku is transforming Indonesian coffee beans into premium instant coffee products, sourcing Robusta from Temanggung and Arabica from Mandailing. The company develops its formulations by matching the distinct characteristics of each regional bean to create a range of sediment-free instant coffees. This initiative highlights the value-added processing of local commodities for the domestic market.

North Sumatra Named Best Province for Implementation of 3 Million Houses Programme

North Sumatra has been recognised as the top-performing province in the implementation of President Prabowo Subianto's '3 Million Houses' programme. Governor Bobby Nasution received the award in Batam, which includes a reward of 300 house renovations for the province. The central government emphasised that the award highlights successful regional leadership and serves as a balance to the negative image caused by legal issues facing some other regional heads.

Indonesia Truly Rich in Gold from Sabang to Merauke, Here's the Data

Indonesia possesses approximately 17.24 billion tonnes of primary gold ore resources, with reserves of around 3.46 billion tonnes, spread across Sumatra, Kalimantan, Sulawesi, Maluku, Papua, Java, and Nusa Tenggara. The largest potential lies in West Nusa Tenggara and Papua, with the government pushing for downstream processing beyond conventional jewellery and investment uses. According to the U.S. Geological Survey, Indonesia's gold reserves reached 3,600 tonnes in 2025, ranking fourth globally.

Preparing for Maroon 5 Concert, Pramono Anung Ensures JIS Parking and Transport Are Adequate

Jakarta Governor Pramono Anung has confirmed that parking and public transport infrastructure will be ready for the Maroon 5 concert at Jakarta International Stadium (JIS) in February 2027. The plan integrates the Ancol area to provide parking for up to 5,000 vehicles, with concertgoers only paying parking fees and not the Ancol entrance ticket. Public transport links, including KRL Commuter Line services and TransJabodetabek buses, are also being enhanced to ensure smooth mobility for the large crowd.

Supreme Court Revises State Losses in Tin Corruption Case: Not Rp300 Trillion, but Rp28 Trillion

Indonesia's Supreme Court has revised the state loss figure in the high-profile tin corruption case involving a former director of PT Timah, reducing it from Rp300 trillion to Rp28 trillion. The court ruled that the initial calculation improperly included Rp271 trillion in environmental damage, which should be pursued separately under environmental law. The cassation appeal by the former operations director was still rejected despite the adjustment.

Family Suspected of Fraud in Depok Released After Mediation

A family in Pancoran Mas, Depok, was apprehended by police following a viral video showing residents surrounding their home over alleged fraud. Police clarified that the incident was not an arrest but a response to public reports, and the five suspects were taken to the Depok Metro Police headquarters. The case was resolved through mediation after both parties reached an agreement, and no formal police report was filed.

Indodax Launches DAX Rewards to Build User Loyalty in Crypto Ecosystem

Indonesian crypto exchange Indodax has introduced DAX Rewards, a gamified loyalty feature designed to boost user engagement and retention. The initiative aims to provide added value beyond secure transactions by encouraging users to explore the platform's ecosystem through missions and point collection. The move reflects a broader industry shift towards building sustainable user relationships in the competitive digital asset market.

Deputy Investment Minister Reveals Rp 1,500 Trillion in Investment Potential Stalled by Licensing

Indonesia faces a potential loss of up to Rp 1,500 trillion in unrealised investment due to protracted business licensing processes, according to Deputy Investment Minister Todotua Pasaribu. He highlighted that the domestic investment cycle averages 4.5 to 5 years, compared to Vietnam where permits can be issued within a week. The government is pursuing regulatory reform through Government Regulation No. 28 of 2025, which introduces an automatic approval mechanism for applications not processed within the service level agreement timeframe.

BKN Chief Clarifies: 2,722 Civil Servant Resignations Mostly Status Transfers, Not Mass Exodus

The Head of Indonesia's National Civil Service Agency (BKN), Zudan Arif Fakrulloh, has clarified that the reported resignation of 2,722 civil servants (ASN) in the first half of 2026 is largely a statistical anomaly. The majority of cases involve part-time government workers (PPPK) transitioning to full-time status, a process that requires a formal resignation, or civil servants taking early retirement. Only 384 individuals, or 14.1 per cent, genuinely left the civil service without pension rights.

Villagers Tell Prabowo: Once We Swam Across Rivers, Now We Have a Bridge

Residents of West Java have expressed their gratitude to President Prabowo Subianto for the construction of a new bridge, which has replaced dangerous river crossings previously made by makeshift rafts or swimming. The infrastructure project, built by the Indonesian military and police, has significantly eased access for farmers and is expected to boost the local economy.

WHO: Congo Ebola Outbreak Now Second Largest in History

The World Health Organization has declared the Ebola outbreak in the Democratic Republic of Congo as the second largest ever recorded, with 4,449 confirmed cases and 2,061 deaths. The outbreak, which has a case fatality rate of 46.3 per cent, is spreading faster than any previous one, and the WHO warns it may surpass the 2014-2016 West African epidemic. Investigations suggest the virus was circulating for months before being officially detected, with the majority of transmission occurring in the community rather than in treatment centres.

Majority of Part-Time PPPK Hold Primary-Secondary Degrees, Civil Servants Mostly University Graduates

Indonesia's civil service has expanded to a decade-high of 6.77 million personnel, driven largely by the recruitment of part-time government workers (PPPK Paruh Waktu). Data from the National Civil Service Agency (BKN) reveals a stark educational divide, with most part-time PPPK holding only primary or secondary school diplomas, while permanent civil servants (PNS) are predominantly university graduates. The shift reflects the government's ongoing strategy to formalise non-permanent staff, with bachelor's degree holders now making up the largest overall segment of the state apparatus.

Press Council Highlights Proliferation of Fake News, Urges Source Verification

The Indonesian Press Council has raised concerns over the widespread circulation of fake news, likening disinformation to religiously unverified 'dhaif' traditions. Speaking at a Muhammadiyah event, Chairman Komaruddin Hidayat stressed that the public's need for quality information is as vital as air and water. He urged media to uphold verification standards and called on the public to scrutinise sources before trusting any information.

North Sumatra Named Best Province in 3 Million Homes Programme Implementation

The North Sumatra Provincial Government has been recognised as the top province for implementing the national '3 Juta Rumah' (3 Million Homes) programme. Governor Bobby Nasution received the award in Batam, which was accompanied by a grant of 300 home renovation units. The central government emphasised that the award highlights successful regional collaboration and serves as a positive incentive alongside regulatory enforcement.

LRT Jabodebek Fare Only Rp 8 on 17 August 2026, Here's the Explanation

PT Kereta Api Indonesia is offering a special promotional fare of just Rp 8 for LRT Jabodebek services on 17 August 2026 to commemorate Indonesia's 81st Independence Day. The initiative aims to broaden public access to transport and integrate the journey into the national celebration. Stations and trains will also feature red and white decorations to mark the occasion.

PKB Affirms Humanitarian Support, Ready to Facilitate Scholarships for Palestinian Students

The National Awakening Party (PKB) has expressed its readiness to provide scholarships for Palestinian students pursuing science and technology degrees in Indonesia. During a meeting with a Palestinian delegation in Jakarta, PKB officials emphasised that their support for Palestine is rooted in humanitarian principles and the universal right to self-determination. The party also reiterated its commitment to fostering bilateral cooperation and supporting the implementation of a 15-point peace roadmap for Gaza.

Putin Warns NATO and Japan's Moves Pose Threat to Russia

Russian President Vladimir Putin has warned that NATO's expansion of weapon systems into the Asia-Pacific and Japan's classification of Russia as a threat are creating new dangers for his country. He highlighted the deployment of US Typhon mid-range missile systems in Japan and Tokyo's deepening collaboration with the military alliance. Putin also noted rising geopolitical tensions in the Arctic but reiterated Russia's openness to international cooperation along the Northern Sea Route.

Shopee Records Four Billion Local Products Sold Since 2022

Shopee Indonesia has announced that four billion local products have been sold through its 'Shopee Pilih Lokal' channel since 2022. The platform is enhancing marketing exposure and offering export programmes to help domestic businesses expand their reach. Sellers can utilise the managed Shopee Export Programme or the more flexible Shopee Export Flexi Programme to enter global markets.

Agriculture Ministry Supports Hoya Conservation, Develops Indonesia's Germplasm Wealth for Global Stage

Indonesia's Ministry of Agriculture is strengthening its commitment to developing the nation's plant genetic resources by registering Hoya varieties. The initiative aims to ensure these varieties are documented, given legal identity, and can be conserved sustainably. The ministry has issued 25 Hoya Variety Registration Certificates to date, highlighting the plant's economic potential as an ornamental commodity.

Forest and Land Fires Surge: Climate Impact or Human Action?

Indonesia is grappling with escalating forest and land fires, with over 48,000 hectares already burned across six provinces, including a significant area in West Kalimantan. The Meteorology, Climatology, and Geophysics Agency (BMKG) notes that monitoring must go beyond hotspots to include land dryness, while the government has deployed 43 helicopters and is attempting cloud seeding to combat the blazes. The situation raises critical questions about the interplay between the El Niño weather pattern and human activities in driving the fires.

Michael Hartono's Colossal Inheritance: Four Children Each Receive Rp52 Trillion

The late Indonesian tycoon Michael Bambang Hartono's 49% stake in PT Dwimuria Investama Andalan has been equally distributed among his four children, with each receiving shares valued at approximately Rp52 trillion. The transfer, one of Asia's largest in recent years, consolidates the Hartono family's control over a vast business empire spanning banking, tobacco, and infrastructure. Robert Budi Hartono has been formally recorded as the ultimate controlling shareholder of Bank Central Asia following his brother's passing.

Five 'Presisi' Bridges Inaugurated in Greater Jakarta to Boost Connectivity

President Prabowo Subianto virtually inaugurated five 'Jembatan Merah Putih Presisi' bridges across the Greater Jakarta area on Thursday. The new infrastructure, located in Bekasi Regency and South Tangerang City, aims to improve daily mobility and provide safer access for residents. The initiative is part of a broader police-community collaboration to enhance connectivity and facilitate the distribution of agricultural produce.