Indonesian Political, Business & Finance News

Archive: 13 August 2026

Showing 851-900 of 1,577 articles

Attorney General's Office Reveals Transfer Pricing Corruption Scheme at PT Toba Pulp Lestari

The Indonesian Attorney General's Office has named two tax officials as suspects in a long-running transfer pricing corruption case involving pulp producer PT Toba Pulp Lestari (TPL). The company allegedly misclassified its dissolving pulp exports as lower-value paper grade pulp from 2008 to 2025, with the complicity of tax supervisors, to significantly understate its corporate tax liabilities. The two suspects have been detained while auditors continue to calculate the total state financial losses.

Quran Memorisation Challenge for Alcohol Case Transferred to Jakarta Metro Police

The case involving a controversial Quran memorisation challenge with alcohol as a prize at a music festival has been transferred from the North Jakarta Police to the Jakarta Metro Police. Two individuals have been arrested, and authorities are investigating the possibility of additional suspects. The event's organiser and the involved brand have both issued apologies, stating the activity was not part of the official programme.

OJK Urges Banks to Tap Massive Digital Economy Potential

Indonesia's Financial Services Authority (OJK) has called on the banking sector to fully capitalise on the country's vast digital economy, which is projected to grow eightfold to Rp4,531 trillion by 2030. The regulator emphasised that digitalisation, accelerated by the Covid-19 pandemic, is now a necessity, with 76% of Indonesians already tech-savvy. OJK is encouraging banks to transform their services and collaborate with fintech firms to create more personal, responsive, and inclusive financial offerings.

Kubu Raya Regent Speaks Out After Brother Allegedly Assaults Doctor and Security Guard

Kubu Raya Regent Sujiwo has publicly addressed an incident in which his younger brother, identified as GI, allegedly assaulted a doctor and a security guard at a regional hospital. The altercation reportedly occurred in the emergency room while medical staff were treating a critically ill family member who later died. Sujiwo stated he will not tolerate such actions, even from his own family, and emphasised that personal relationships should not excuse violence against healthcare workers.

Government Launches Subsidised Microloans for Underprivileged Women at 8% Interest

The Indonesian government has formalised a new microcredit scheme, Kredit Perempuan Prasejahtera (KPPS), offering loans of up to Rp15 million at a flat 8% annual interest rate to women from underprivileged families. The scheme, established by Coordinating Ministry for Economic Affairs Regulation No. 7/2026, drastically reduces the typical 24% interest burden faced by ultra-micro entrepreneurs through a government subsidy. The programme mandates integrated empowerment services, including business mentoring and financial literacy training, and prohibits additional collateral requirements.

Danantara Affirms SOEs' Role in National Trade Ecosystem

Indonesia's Danantara investment body has highlighted the crucial role of state-owned enterprises (SOEs) in building an integrated and inclusive national trade ecosystem. The initiative focuses on involving micro, small, and medium enterprises (MSMEs) and optimising SOE assets, including the digital marketplace PaDi UMKM, to support domestic procurement and equitable economic growth.

Prajogo Pangestu Becomes Indonesia's Richest Person, Wealth Surges by Rp19 Trillion in a Day

Indonesian petrochemical tycoon Prajogo Pangestu has solidified his position as the country's wealthiest individual after his fortune surged by nearly 7% in a single day. The increase, amounting to US$1.1 billion, was driven by significant share price appreciation across his business empire over the past month. The rally occurred despite recent scrutiny over the high shareholding concentration of his renewable energy firm, Barito Renewables Energy.

BI Opens Sharia Financing Access for Corporate Expansion

Bank Indonesia (BI) is strengthening the link between the halal industry and sharia finance to broaden corporate access to funding for investment and expansion. The initiative aims to make sharia financing a strategic and competitive choice, supported by a bankable project pipeline and deeper financial market intermediation. This push is backed by strong sector performance, with sharia banking financing reaching Rp720 trillion and the halal supply chain growing 5.5% in June 2026.

Erdogan meets Abbas in Ankara, reaffirms support for Palestine

Turkish President Recep Tayyip Erdogan has reiterated his support for a two-state solution based on 1967 borders during a meeting with Palestinian President Mahmoud Abbas in Ankara. Erdogan pledged to vigorously pursue an independent Palestinian state with East Jerusalem as its capital. The meeting follows Israeli Prime Minister Benjamin Netanyahu's formal rejection of a US-backed 15-point plan to end the conflict in Gaza.

Haedar Nashir: The State Needs Information and Criticism from the Mass Media

Muhammadiyah Chairman Haedar Nashir emphasised the vital role of the mass media in providing information and constructive criticism to all state institutions. Speaking at a press event, he argued that a nation's progress depends on an open ecosystem where the media can present diverse, truthful narratives. He also reminded journalists to uphold ethical standards in line with Indonesia's noble values.

Four BAIS TNI Soldiers Who Attacked Andrie Yunus with Acid File Appeals

Four Indonesian military intelligence soldiers convicted of an acid attack on activist Andrie Yunus have filed appeals, raising concerns about transparency and potential leniency. Legal advocates report that two months after the appeal was lodged, there has been no significant update on the case's progress or the defendants' detention status. The initial trial resulted in prison sentences ranging from 1.5 to 3 years, with two of the soldiers also dismissed from military service.

Seeds of a New Asian War Continue to Grow, Military Begins Deployment

Taiwan has conducted its first joint anti-blockade drill with the navy and coast guard amid escalating Chinese maritime pressure. The exercise, part of the annual Han Kuang war games, simulated escorting merchant ships through a blockade scenario. President Lai Ching-te emphasised that Taiwan faces regional geopolitical changes alongside the international community's shared concerns.

Deputy Regent Nurul Adha Claims Exclusion from West Lombok Development Projects

West Lombok Deputy Regent Nurul Adha has denied any involvement in local government development projects during questioning by the Corruption Eradication Commission (KPK). The investigation is linked to a bribery case involving the now-inactive Regent, Lalu Ahmad Zaini, who was caught in a sting operation. The KPK is probing the procurement of goods and services, including a park rehabilitation project worth billions of rupiah.

In the AI Era, OJK Urges Banks to Strengthen Cybersecurity

Indonesia's Financial Services Authority (OJK) has called on banks to bolster their digital defences, warning that cyber threats are increasingly perpetrated by organised criminal groups. The regulator stressed that while artificial intelligence can drive efficiency, its implementation must be governed by robust, trustworthy frameworks. Banks are required to adopt responsible AI governance to protect consumers and maintain public trust.

Workers demand revocation of three government regulations derived from Omnibus Law during DPR hearing

Trade union leader Said Iqbal has urged the House of Representatives (DPR) to revoke three Government Regulations linked to the Job Creation Omnibus Law, arguing they allow severance pay as low as half the standard rate in cases of redundancy. The demands were made during a hearing on the draft Labour Bill, where unions also called for fair wages, restrictions on easy hiring and firing, and limitations on outsourcing in line with Constitutional Court directives.

Constitutional Court to Develop Digital Services for Modern Judiciary

Indonesia's Constitutional Court (MK) is advancing a digital transformation initiative aimed at creating a modern, independent, and accountable judiciary. Chief Justice Suhartoyo announced the development of a 'digital constitutional court' to improve public access to justice, with plans to collaborate with the Ministry of Communication and Digital. The court reports that 85 per cent of its case submissions are already conducted online.

Minister: Social Protection Programme is How the State is Present for the People

Minister of State Apparatus Empowerment and Bureaucratic Reform Rini Widyantini has stated that the Social Protection (Perlinsos) programme, which digitises social aid, represents the state's commitment to improving public services. Speaking during an inspection in Sumedang, West Java, she emphasised that digital government should not just modernise the state's image but make it more present in citizens' lives. The initiative in Sumedang has seen over 111,000 families registered, with 91.91 per cent of registrations completed through active, door-to-door assistance by local agents.

South Korea Unveils 'Seven Major SEED' Strategy to Challenge US and China in Advanced Tech

South Korea has announced an ambitious technology strategy centred on seven key projects, including small modular reactors, quantum computing, and lunar exploration. The 'Seven Major SEED' initiative aims to create new economic growth engines beyond semiconductors and artificial intelligence. President Lee Jae-myung stated the plan would position the country as a formidable new player in the high-tech race between the United States and China.

President Prabowo Inaugurates 3,395 Bridges, Urges Public to Maintain Infrastructure

President Prabowo Subianto officially inaugurated 3,395 bridges and 3,000 clean water sources built by the Indonesian National Armed Forces (TNI) and National Police (Polri) across the country. During the virtual ceremony, he called on residents to carefully maintain the new infrastructure and adhere to weight limit regulations. The President praised the TNI and Polri for their service mission, stating the projects are proof that the security forces truly serve the people.

SAR Team Focuses Search for Five Missing Passengers of KMP Putri Yasmin

A joint search and rescue (SAR) operation is intensifying efforts to locate five passengers still missing after the KMP Putri Yasmin ferry caught fire in the Lombok Strait. As of Thursday, 212 people have been evacuated, with one confirmed fatality. Authorities are coordinating surface searches and alerting passing vessels to report any sightings of the missing individuals.

Indonesia Doubles Down on Research Funding to Drive Industrialisation

President Prabowo Subianto has approved an additional Rp4 trillion for the National Research and Innovation Agency (BRIN), nearly doubling its budget to shift the focus from academic publications to tangible industrial products. The funding aims to boost the competitiveness of SMEs and national industries, marking a concrete fiscal response to long-standing complaints about Indonesia's low research spending, which has lagged far behind regional peers like Malaysia and South Korea.

Putin Visits Kuril Islands, Japan Protests Strongly

Russian President Vladimir Putin's visit to the disputed Kuril Islands has drawn a sharp protest from Japan, which claims the territory as its own. The visit, which included a stop at a fish processing plant, comes amid strained relations between the two nations following Russia's invasion of Ukraine. Japan's Foreign Minister stated the islands are an inherent part of Japanese territory historically and under international law.

KPK Seizes Documents from Bengkulu City PUPR Official's Home

The Corruption Eradication Commission (KPK) has intensified its investigation into alleged corruption within the Bengkulu City Government, searching the home of a Public Works and Spatial Planning (PUPR) official. Investigators seized three suitcases and a box containing documents from the residence of Agus Suhendra Wijaya, Head of the Water Resources Division. This search is part of a broader series of raids targeting officials in the region, including a previous seizure of Rp4 billion in cash from the home of the PUPR Department Head.

Evidence Suggests Bongal Site Dates Back to the Prophetic Era: Abbasid Coins to Chinese Ceramics

Archaeological excavations at the Bongal site in Tapanuli, North Sumatra, have uncovered significant artefacts dating from the 7th to 10th centuries AD. Findings include gold coins from the Umayyad and Abbasid caliphates, Chinese Tang Dynasty ceramics, and a Ganesha statue, indicating the area's historical importance in early Nusantara trade and cultural exchange.

President Prabowo Inaugurates Five 'Merah Putih' Bridges to Boost Connectivity in Greater Jakarta

President Prabowo Subianto has inaugurated five 'Merah Putih Presisi' bridges in the jurisdiction of the Greater Jakarta Metropolitan Regional Police to improve community access and mobility. The bridges, located in Bekasi Regency and South Tangerang City, are expected to facilitate daily activities, support the distribution of agricultural products, and strengthen economic centres. The initiative represents a collaboration between the police, government, and local communities to provide sustainable infrastructure.

National Narcotics Agency arrests fugitive drug lord in North Jakarta

The National Narcotics Agency (BNN) has arrested a fugitive drug lord known as 'Bos Gendut' in North Jakarta, seizing 98 kilograms of methamphetamine and uncovering assets linked to money laundering worth an estimated Rp 39.5 billion. The operation, which also resulted in the arrest of two associates and the recovery of gold bars, a samurai sword, and cash, highlights the ongoing battle against major narcotics networks operating within Indonesia. Authorities are continuing to trace the financial trail as part of broader efforts to dismantle the syndicate's operations.

Gen-Z Civil Servants Dominate BGN, OIKN, and Attorney General's Office by First Half of 2026

Indonesia's National Civil Service Agency reports that Generation Z employees now make up a significant portion of the workforce in several key government institutions. The National Nutrition Agency leads with 80% Gen-Z staff, followed by the Nusantara Capital Authority at 62%. The agency notes this demographic shift represents a major opportunity to optimise bureaucratic performance through the country's demographic bonus.

Environment Minister Supports Strengthening Medical and Hazardous Waste Management Ecosystem

Indonesia's Environment Minister, Moh Jumhur Hidayat, has called for a more transparent and sustainable ecosystem for managing medical and hazardous waste (B3). During a visit to a waste treatment facility in Bogor, he stressed the need for traceability, strict mass balance, and consistent law enforcement to prevent pollution. The Minister also warned against the unregulated trade of used medical materials and urged waste producers to contract directly with licensed processors.

House Leadership Confirms It Will Accommodate Labour Input on Employment Bill

The leadership of Indonesia's House of Representatives (DPR) has assured trade unions that their input will be incorporated into the draft Employment Bill. During a meeting with labour representatives, DPR officials confirmed that the bill's academic paper is available for public review and that discussions will continue during the parliamentary recess. Key union concerns include regulations on outsourcing, contract work, and the definition of employment relationships.

The Strength and Wealth of Indonesia's Gold Ecosystem

Indonesia possesses vast gold resources, with production reaching up to 86.2 tonnes per year, yet utilisation remains largely conventional. The government is pushing for downstream processing to integrate gold into the bullion bank ecosystem and expand its use beyond jewellery and reserves into the electronics and semiconductor industries. Officials estimate the nation's gold capital could reach IDR 1,800 trillion with strengthened central bank reserves.

Sleman Chosen as Pilot for Digital Social Protection to Ensure Targeted Aid Distribution

Minister of Communication and Digital Affairs Meutya Hafid announced that Sleman Regency has been selected as a pilot area for the Digital Social Protection (Perlinsos Digital) programme. The initiative aims to ensure social assistance reaches the right recipients through a system-based verification process, reducing the risk of corruption, collusion, and nepotism. The programme integrates population data to allow citizens to register online, with the government targeting a verification process that takes only minutes.

House Commission II Chair Urges Central and Regional Governments to Accelerate Civil Administration Services

Muhammad Rifqinizamy Karsayuda, Chair of House Commission II, has called for stronger synergy between central and regional governments to speed up civil administration services. He emphasised that proactive 'jemput bola' (outreach) services are essential to ensure all citizens, especially those with limited access, can obtain identity documents. This initiative is also seen as crucial for strengthening data verification to support the government's social protection programmes.

KPK Searches Tax Office in Surakarta and Four Other Regions, Seizes Gold and Cash

The Corruption Eradication Commission (KPK) has conducted searches at the Surakarta Tax Office and several locations across four other regions as part of an investigation into a tax restitution bribery case. During the searches, investigators seized documents, electronic evidence, 1.3 kilograms of gold, and Rp100 million in cash. The case involves a former tax official who allegedly received bribes related to a Rp48.3 billion tax restitution claim.

Banyumas Raya Economy Grows Amid Drought Risk in Second Half of 2026

The economy of the Banyumas Raya region expanded in the first quarter of 2026, driven by strong household consumption and investment. However, Bank Indonesia warns of heightened drought risks until late September, which could threaten food production and price stability. Mitigation efforts, including irrigation optimisation and digital farming, are being prepared with local governments.

Three New District Attorneys Officially Installed in Bali, Urged to Maintain Integrity and Responsiveness

Three new District Attorneys have been officially installed for Karangasem, Badung, and Jembrana in Bali. The High Prosecutor of Bali urged the new officials to quickly adapt to their respective regions' legal challenges and maintain integrity in their duties. The rotation is seen as a test to ensure the leadership change results in faster and more decisive law enforcement.

Barber in Bogor Berated by Subdistrict Head's Entourage for Not Displaying Flag

A barber in Rancabungur, Bogor, was verbally intimidated by a man accompanying the local subdistrict head for not having put up an Indonesian flag. The incident, which was captured on video, occurred when the subdistrict head and her entourage visited the barber's shop, leading to a heated exchange after the barber said he did not yet have a flag.

US Declares Readiness to Cooperate with Indonesia in Safeguarding Territorial Sovereignty

US Deputy Secretary of Defense Elbridge A. Colby stated that the United States is prepared to cooperate with Indonesia in maintaining its territorial integrity, emphasising respect for Indonesia's own approach to sovereignty. Colby highlighted that a strong US presence aims to support regional balance of power, which in turn fosters economic growth. The remarks follow his meetings in Jakarta with Indonesian Defence Minister Sjafrie Sjamsoeddin and President Prabowo Subianto.

Ancol Prepared as Parking Hub for Maroon 5 Concert at JIS, Says Jakarta Governor

Jakarta Governor Pramono Anung announced that the Ancol area will be used as a parking facility to manage crowds during the upcoming Maroon 5 concert at Jakarta International Stadium (JIS). The administration has established a cooperation agreement with Ancol to provide free parking access for concertgoers, while also encouraging the use of public transportation such as the KRL and Transjabodetabek buses. The concert is scheduled to take place on 5 February 2027.

The Fate of Electric Cars in Indonesia: When Can They 'Dominate' the Roads Like in China?

Indonesia's electric vehicle market is experiencing rapid growth, with electrified cars accounting for 26.8% of national sales in the first half of 2026. Senior automotive observer Bebin Djuana argues that consistent government policy is crucial to maintaining this momentum and achieving a market share comparable to China's 60%. The surge in sales, particularly for battery electric vehicles, signals a positive shift, but long-term regulatory certainty is needed to secure investment and ecosystem development.

Central Sulawesi Governor Instructs Regional BPBDs to Standby for Forest and Land Fires

Central Sulawesi Governor Anwar Hafid has ordered regional disaster management agencies (BPBD) across the province to be on high alert for potential forest and land fires (karhutla) due to ongoing global climate changes. The directive follows reports of fires impacting several areas, including Tojo Una-Una, Banggai, and Banggai Islands, which have already affected approximately 240 hectares of land. The Governor also urged the public to avoid burning rubbish or branches when clearing land and called for cross-sector collaboration to mitigate the risks of both fires and drought.

Depok Community and Government Declare Commitment to Human Rights Civilisation

The community and government of Depok, West Java, have jointly declared a commitment to making human rights values the foundation of social life and governance. The declaration aims to create an inclusive, non-discriminatory city that protects vulnerable groups, with the Ministry of Human Rights urging concrete policy follow-ups. Officials stressed that the initiative must translate into real action in policy formulation and community implementation to uphold human dignity.

Police Investigate Irregularities in Sutrimo's Death, Missing Belongings Under Scrutiny

The Jakarta Metropolitan Police are investigating several irregularities in the death of Sutrimo, including the disappearance of his personal belongings. The case has been upgraded to a criminal investigation, with police exploring potential homicide charges. Former junior attorney general Febrie Adriansyah has denied that Sutrimo was his household manager, stating the deceased was merely a caretaker for a vacant property.

Commemorating the 81st Independence Day: A Look at Business Sector Achievements in Boosting the Economy

As Indonesia marks its 81st Independence Day, the business sector reflects on its role in national development, aligning with government priorities such as food and energy security, downstreaming, and digital transformation. CNBC Indonesia is launching a special segment to highlight corporate strategies and innovations that have tangibly contributed to inclusive and sustainable economic growth. The initiative underscores the private sector's commitment to strengthening industrial competitiveness and creating lasting value for stakeholders.

Pelindo Conducts Emission Tests on 500 Logistics Vehicles in Four Cities

State-owned port operator Pelindo has conducted emission tests on 500 vehicles across Jakarta, Medan, Surabaya, and Makassar as part of its 'Merdeka Emisi' programme. The initiative, which primarily targeted container trucks at Tanjung Priok port, aims to improve air quality and promote sustainable port management. The company emphasised that achieving its 'Green Port' goals requires collaboration from the entire logistics ecosystem, including transport companies and drivers.

Garuda Indonesia Temporarily Suspends Commercial Director Reza Aulia

PT Garuda Indonesia (Persero) Tbk has temporarily suspended its Commercial Director, Reza Aulia Hakim, effective 14 August 2026. The decision was made by the company's Board of Commissioners following a directive from the State-Owned Enterprise Regulatory Body. The airline confirmed that the suspension will not affect its operational activities and a temporary replacement will be appointed in accordance with internal regulations.

Cyber University and Tanjung Barat Sub-district Educate Residents on Waste Segregation

Cyber University has partnered with the Tanjung Barat Sub-district in South Jakarta to educate residents on the importance of sorting household waste. The initiative aligns with a new DKI Jakarta policy, effective 1 August 2026, which mandates that the Bantar Gebang landfill will only accept residual waste. Both parties plan to develop further community programmes focused on environmental awareness and quality of life.

Bus-pulling competition enlivens Indonesia's 81st Independence Day celebrations

A bus-pulling competition was held at Tidar Terminal in Magelang, Central Java, to celebrate the 81st anniversary of Indonesia's independence. The event, organised by the local transportation agency, aimed to provide entertainment and strengthen community bonds. Participants included terminal staff, members of the Indonesian Transport Workers Union, civil service police, street vendors, bus agency representatives, and local MSME players.

Helicopter Deployed to Search for Five Missing Passengers of KMP Putri Yasmin

Search and rescue teams have deployed a helicopter to locate five passengers still missing after the KMP Putri Yasmin ferry caught fire in the Lombok Strait. The privately-owned helicopter is assisting sea vessels in sweeping the waters west of Lembar Port. Over 200 passengers were evacuated, with one confirmed fatality reported from the incident.

US Opens Door for New Partnership, Vows to Respect Indonesian Sovereignty

US Deputy Secretary of Defense Elbridge A. Colby stated that talks with Indonesian leaders have opened opportunities for a new partnership designed to strengthen Indonesia's independent defence capabilities. The cooperation will respect Indonesian sovereignty and nationalism, focusing on capacity building rather than forcing Jakarta to choose sides in global rivalries. Indonesian Defence Minister Sjafrie Sjamsoeddin confirmed the partnership will not involve establishing US military bases in Indonesia.

PKS Proposes Pairing Politicians with Professionals for Regional Leadership

The Prosperous Justice Party (PKS) has suggested a new model for regional elections, proposing that a politician be paired with a non-partisan professional to form a leadership team. This comes in response to a Constitutional Court ruling that lowered the nomination threshold, which PKS believes could reduce internal conflict between governors, mayors, and their deputies.