Indonesian Political, Business & Finance News

Archive: 13 August 2026

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Indonesia Must Improve Economic Quality Amid High Informal Employment

Indonesia's economy grew by 5.29% year-on-year in the second quarter of 2026, maintaining solid momentum. However, Chief Economist of BNI Leo Rinaldy highlights the challenge of improving economic quality, as 59.3% of the workforce remains in the informal sector. Fiscal policy is urged to focus on creating formal employment opportunities.

KPK Examines Jakarta Council Member Bebizie in Graft Case Linked to Former Kukar Regent

Indonesia's Corruption Eradication Commission (KPK) has questioned Jakarta DPRD member Bebizie Sri Mulyati as a witness in a coal production gratuity case involving former Kutai Kartanegara Regent Rita Widyasari. The investigation has expanded to include allegations of illicit payments from the coal mining sector and the naming of three corporate suspects. The case underscores the KPK's ongoing pursuit of corruption within the country's extractive industries and regional governance.

AI Overviews Shift Search Behaviour: Only 8 Percent of Users Still Click Traditional Results

The rise of Google's AI Overviews is fundamentally altering how users access information, with data indicating a drastic reduction in clicks to external websites. This shift towards 'zero-click search' threatens the economic model of the web, forcing publishers to adapt as Google transforms from a gateway into an answer provider. The technology has now expanded globally, including to Indonesia, raising concerns about factual accuracy and the sustainability of digital content creation.

The cracks that remain after the flash floods struck

Eight months after a devastating flash flood in West Sumatra's Agam Regency, which claimed 115 lives, visible cracks in homes, roads, and farmland continue to haunt residents. These fissures are not merely cosmetic damage but serve as critical geotechnical indicators of ongoing soil instability, raising fears of further landslides during heavy rain.

Velodrome-Manggarai LRT Nearly Complete at 97.99 Percent, Says Pramono

Jakarta Governor Pramono Anung has announced that construction of the Velodrome-Manggarai LRT route is 97.99 percent complete, with only signalling work remaining. The 12.2-kilometre line, representing an investment of Rp12.1 trillion, is expected to be fully ready by 20 August and will connect North, East, and South Jakarta. The official inauguration is planned to be carried out by President Prabowo Subianto.

164,000 Students with Disabilities Gain Access to Education Through School Revitalisation Programme

Indonesia's Ministry of Elementary and Secondary Education is accelerating inclusive education access for over 164,000 students with special needs through a nationwide school revitalisation programme. The initiative, which includes physical rehabilitation and new learning facilities, was launched at SLB Tunas Bakti in Yogyakarta. The government has allocated over Rp2 trillion for the programme, targeting 1,609 educational units across the country by 2026.

Bulog Records 3.4 Million Tonnes of Rice Absorption, Government Stocks Deemed Safe

State logistics agency Perum Bulog has absorbed approximately 3.4 million tonnes of rice from farmers, achieving 80 percent of its 2026 target. The agency confirmed that total government rice reserves currently stand at 5.4 million tonnes, ensuring sufficient supply to maintain national food security and facilitate large-scale social assistance programmes during the dry season.

Climate change and AI add to pressures on Asia Pacific’s health systems

The World Health Organization has warned that climate change and the rapid development of artificial intelligence are placing new strains on Asia Pacific health systems. Extreme weather is increasing disease risks and threatening infrastructure, while AI offers opportunities to improve efficiency and access but also risks widening inequalities. The forum in Phnom Penh heard calls for greater investment in climate-resilient health systems and a balanced regulatory approach to ensure AI supports, rather than replaces, healthcare professionals.

West Java Provincial Government Distributes Aid to West Bandung Regency, Strengthening Food Security and Livestock Farmer Independence

The West Java Provincial Government has provided livestock facilities and 195 laying hens to a farmers' group in West Bandung Regency to boost local egg production. The aid package, which includes feed, medicine, and hatchery machines, aims to build a self-sufficient and productive community farming system. This initiative is intended to reduce reliance on external chick supplies and strengthen the rural economy and food supply chain.

Haedar Nashir Receives 'Wartawan Utama' Status, Recalls His Reporting Days

Muhammadiyah Chairman Haedar Nashir has been awarded the prestigious 'Wartawan Utama' (Senior Journalist) status by the Indonesian Press Council. During the ceremony, he reminisced about his early career starting in 1984 at Suara Muhammadiyah, where he faced rigorous training and once had his news copy torn up by an editor. Nashir noted that these formative experiences shaped his meticulous approach and low tolerance for sloppy journalism when he later became the publication's editor-in-chief.

National Police Chief Reports 874 Bridges Completed to President Prabowo

National Police Chief General Listyo Sigit Prabowo reported to President Prabowo Subianto that 874 'Red and White Precision' bridges have been completed across Indonesia. The programme, involving self-funded construction and revitalisation by the police, has connected 1,314 villages and benefited approximately 2 million people. The bridges aim to improve rural connectivity, safety, and access to schools, healthcare, and economic centres.

LRT and KRL to Be Integrated at Manggarai Station, Passengers Won't Need to Exit

Jakarta's Manggarai Station is set to become a major integrated transport hub as the LRT and KRL commuter lines will be connected, allowing passengers to transfer without leaving the station. The integration, announced by Jakpro's CEO during a site inspection with the Governor, aims to enhance commuter convenience and support the development of new Transit Oriented Developments (TODs) in the area.

SPPG Head in Karanganyar Falls Ill After Tasting MBG Menu, Distribution Halted

The head of the Nutrition Fulfillment Service Unit (SPPG) in Jaten, Karanganyar, experienced nausea and dizziness after sampling a spiced chicken dish intended for the Free Nutritious Meal (MBG) programme. The distribution of the 300 meal portions was cancelled after the kitchen team reported a suspicious odour from the chicken. An organoleptic test was conducted, and the dish received a low score, prompting the decision to withhold the meals.

US Military Implodes from Within: Sailors on USS Abraham Lincoln Suffer Severe Stress and Suicidal Ideation

Crew members aboard the USS Abraham Lincoln are reportedly experiencing severe mental health crises, including suicide attempts, amid an extended deployment related to the US-Iran conflict. Family members and a US Congressman have raised alarms about deteriorating living conditions on the carrier, citing moldy bathrooms, broken toilets, and food rationing. The US Navy acknowledges the stress of the prolonged mission but denies an increase in suicide attempts, while families and lawmakers accuse leadership of neglecting the crew's basic welfare.

House Commission III to Decide Fate of Supreme Court and Ad Hoc Judge Candidates Today

The House of Representatives' Commission III is set to finalise the results of the fit and proper tests for 11 Supreme Court and 3 Ad Hoc judge candidates today. The commission has three options: to accept all, reject all, or select only some of the candidates proposed by the Judicial Commission. The final decision will be made after deliberation among the eight parliamentary factions.

GOTO Shares Removed from MSCI Global Standard Indexes, Here's MSCI's Explanation

MSCI has removed PT GoTo Gojek Tokopedia Tbk (GOTO) from its Global Standard Indexes following the August 2026 Index Review. The decision was driven by extremely low liquidity, with the share price stagnating at the minimum trading level of Rp 50 since mid-May. The exclusion, effective 31 August 2026, reflects the stock's persistent underperformance and significant net foreign selling throughout the year.

Search for Ferry Fire Victims in Lombok Strait Expands Southwest

A joint search and rescue operation is continuing for five missing passengers after a ferry fire in the Lombok Strait, with teams expanding their search area to the southwest. Authorities suspect a discrepancy of up to 56 people between the official manifest and the actual number of passengers on board. The incident is the second ferry fire in the area within ten days, prompting calls for a comprehensive safety audit of the national transportation system.

KPK Examines Former Bank BJB President Director Yuddy Renaldi as Suspect in IDR 223 Billion Advertising Corruption Case

The Corruption Eradication Commission (KPK) has questioned former Bank BJB President Director Yuddy Renaldi as a suspect in a major advertising procurement corruption case. The case, which involves six advertising agencies, is estimated to have caused state losses of approximately IDR 223 billion. Four other suspects, including a former Bank BJB division head and several agency controllers, have already been detained in connection with the scheme.

148 Jumantik Cadres in Cempaka Baru Boost Capacity for Dengue Prevention

A total of 148 jumantik (larval monitoring) cadres from Cempaka Baru, Central Jakarta, have undergone capacity-building training to strengthen their skills in public education and early detection of Dengue Haemorrhagic Fever. The initiative, supported by Plan Indonesia, focused on effective communication strategies to encourage community participation in eradicating mosquito breeding sites. Cadres will create vlogs to demonstrate their understanding, with ongoing monitoring planned to ensure the training translates into improved field performance.

Economist Reveals Facts Behind GDP Data, Says Indonesian Economy Remains Solid

Indonesia's economy grew by 5.29% year-on-year in the second quarter of 2026, maintaining a solid performance above 5% and outpacing peer countries. BNI Chief Economist Leo Rinaldy highlighted that the growth was supported by strong government spending and a nearly 7% rise in real investment, particularly in construction. However, he noted challenges remain in improving employment quality, as 59.3% of the workforce is still in the informal sector.

Manado Tua Mountain Climbing Temporarily Closed to Prevent Forest Fires

Bunaken National Park will temporarily close the climbing route on Manado Tua Mountain in North Sulawesi to prevent forest fires amid the current dry season. The decision follows observations of extremely dry vegetation and comes as a precautionary measure after a large fire recently devastated a protected forest in the region. Local guides will be enlisted to help monitor the area and ensure compliance during the closure.

Telkom Strengthens Collaboration to Face Quantum Computing Era Threats

State-owned telecommunications giant Telkom Indonesia is spearheading a national collaboration with government bodies, academia, and industry to prepare for the cybersecurity risks posed by quantum computing. The initiative, discussed at a high-level coordination meeting, focuses on developing a national migration roadmap to post-quantum cryptography. Telkom is also investing in research and quantum-safe infrastructure to safeguard Indonesia's digital sovereignty.

KPK Summons BPK Auditor in Ongoing Railway Project Corruption Case

Indonesia's Corruption Eradication Commission (KPK) has summoned an auditor from the Supreme Audit Agency (BPK) as a witness in the long-running corruption investigation into railway infrastructure projects under the Directorate General of Railways. The case, which began with a sting operation, has already resulted in 21 named suspects, including former officials and business directors, with most having been convicted. The investigation continues to expand, recently involving the return of funds by a former ministerial staff member.

BI Launches Independence Day Promo: Tour Bandung by Bandros for Only Rp81

Bank Indonesia's West Java office and the Bandung city government are offering a special Rp81 fare for the Bandung Tour on Bus (Bandros) service on 16-17 August 2026 to celebrate Independence Day. The 'QRISKeun Bandros' programme aims to accelerate digital payment adoption by requiring QRIS for the discounted fare. Officials stated the initiative is designed to integrate digital transactions into the tourism and transportation sectors while promoting the national QRIS standard.

Lawyers Claim Losses in Juwuk Legi Chicken Theft Case Reach Hundreds of Millions of Rupiah

Legal representatives for the residents of Banjar Juwuk Legi in Bali have stated that a series of chicken thefts since 2023 have caused losses amounting to hundreds of millions of rupiah. The targeted birds were reportedly high-value imported and fighting cocks, not ordinary poultry. The issue came to light following the death of a suspected thief, KD, who was allegedly beaten by a mob in July.

Bank Mandiri Disburses IDR 25.63 Trillion in Loans to Support SME Upgrading

State-owned Bank Mandiri has channelled IDR 25.63 trillion in People's Business Credit (KUR) as of July 2026, reaching 62.5% of its annual target. The bank is focusing on a comprehensive ecosystem including financing, digitalisation, and mentorship to help micro, small, and medium enterprises (SMEs) scale up their businesses. This initiative aligns with the government's priority to strengthen the national economy through inclusive and sustainable growth.

Gowa Regent Husniah Responds to DPRD's Impeachment Move

Gowa Regent Sitti Husniah Talenrang has responded to the local parliament's decision to propose her impeachment, stating she respects the process and will follow the legal mechanisms. The DPRD unanimously agreed to the dismissal proposal, which will now be submitted to the Supreme Court for review. If the court approves, the decision will be forwarded to the Ministry of Home Affairs for execution.

The Saga of the Holy War: The Sacred Manuscript that Hypnotised the Acehnese into Fearlessly Fighting Colonialists

The 'Hikayat Perang Sabil', a literary work by Teungku Chik Pante Kulu, was believed to possess a hypnotic power that incited the people of Aceh to wage a fearless holy war against Dutch colonial forces. The manuscript's influence was so profound that the colonial administration strictly banned its possession and reading, punishing violators severely. This article explores the history of the text and its author, highlighting its role in galvanising individual acts of resistance during the Aceh War.

Government Focuses on Projects to Advance Indonesia and Fulfil People's Needs

President Prabowo Subianto has stated that his administration is committed to both large-scale strategic projects and basic infrastructure to ensure remote communities are not left behind. He highlighted the construction of thousands of bridges and clean water sources by the military and police as a mission of service. The President emphasised that the state must be present for the most isolated citizens to improve their quality of life.

Pramono Revises 17 August Public Transport Fare from Rp1 to Rp8

Jakarta Governor Pramono Anung has revised the special fare for public transport on Independence Day from Rp1 to Rp8. The decision was made after coordination with the central government to ensure uniformity across all services. The revised fare will apply to MRT Jakarta, LRT Jakarta, and Trans-Jakarta on 17 August 2026.

40 Palestinian journalists held in Israeli prisons under 'harsh' conditions

A Palestinian NGO reports that 40 journalists are currently detained in Israeli prisons under severe conditions, following the latest arrest in Ramallah. The organisation states that over 250 journalists have been detained and more than 260 killed since October 2023. Israel has yet to comment on the claims.

JCI Plunges 1.18% in First Session, Foreign Net Sell Reaches IDR 1.18 Trillion

The Jakarta Composite Index (JCI) fell by 1.18% to 6,298.34 during the first trading session on Thursday, driven by significant foreign outflows. Foreign investors recorded a net sell of IDR 1.18 trillion, with the heaviest selling pressure hitting PT Dian Swastatika Sentosa Tbk (DSSA) and PT Chandra Asri Pacific Tbk (TPIA). The market downturn occurred amid broader pressure following the announcement of the MSCI August 2026 Index Review.

Sports achievements improving but not yet perfect, says minister

Youth and Sports Minister Erick Thohir has acknowledged that Indonesia's sporting performance is on an upward trajectory, though many disciplines still fall short of expectations. He highlighted recent successes such as a second-place finish at the 2025 SEA Games and a gold medal in football, while outlining reforms to streamline regulations and boost the sports economy. The ministry is also prioritising sport tourism as a key economic driver for the 2025–2029 period.

Forestry Minister: Those Battling Forest Fires Are Heroes

Forestry Minister Raja Juli Antoni has hailed frontline firefighters tackling forest and land fires across Indonesia as heroes, urging the public to pray for their safety. The fires are currently affecting several regions, including East Java, Riau, and parts of Kalimantan. The ministry is coordinating with the meteorological agency to optimise weather modification operations as the number of hotspots rises.

Manggarai LRT to Operate Daily from 5 AM to Midnight

The Jakarta LRT Kelapa Gading-Manggarai route is set to commence daily operations from 05:00 to 24:00 WIB, with Governor Pramono Anung stating it will become a new backbone of the city's public transport system. The 12.2-kilometre line is 98 per cent complete and is expected to carry up to 60,000 passengers daily initially, rising to 80,000 under normal conditions. The provincial government also plans to extend the line from Manggarai to Dukuh Atas, with construction slated to begin next year and finish by August 2028.

DPR Receives Report of 2,722 Civil Servants Resigning

The Indonesian House of Representatives (DPR) has received reports that 2,722 civil servants (ASN) resigned in the first half of 2026. A legislator warned that this talent drain represents a significant loss of state investment and could disrupt public services, urging the government to comprehensively map the causes.

TNI AL Conducts Passing Exercise with Japan and US, Not Just China

The Indonesian Navy has clarified that its recent passing exercises are not limited to China, but also include Japan and the United States. The exercises, described as routine interactions to build communication and trust, follow a joint drill with China that drew protests from Taiwan. The Navy emphasized the activities are non-combat in nature and support Indonesia's free and active foreign policy.

KMP Putri Yasmin Fire: House Commission V Demands Total Evaluation of Ship Supervision

Following the fire on the KMP Putri Yasmin ferry in the Lombok Strait, a member of Indonesia's House of Representatives Commission V has called for a comprehensive evaluation of the national shipping safety and supervision system. The incident, which resulted in one fatality and the rescue of 172 people, occurred just ten days after a similar deadly fire on the KM Mutiara Sentosa II. Lawmakers are demanding the government address systemic issues in seaworthiness inspections, passenger manifest accuracy, and emergency preparedness rather than reacting to individual disasters.

West Papua Residents Thank Prabowo for Bridge Ending Six-Year River Crossing Ordeal

Residents of Uduwey Village in West Papua expressed their gratitude to President Prabowo Subianto for a new bridge that has ended a six-year struggle of crossing a river, which previously isolated the community during heavy rains. The bridge, built by the Indonesian Army, now provides crucial access to education and economic activities for approximately 70 families. The inauguration was part of a nationwide event that also included the provision of clean water wells for isolated communities in East Java.

Former Bank BJB President Director Yuddy Renaldi Questioned by KPK in Advertising Fund Corruption Case

Yuddy Renaldi, former President Director of Bank BJB, was questioned by the Corruption Eradication Commission (KPK) as a suspect in a corruption case involving advertising funds. The case pertains to the procurement of advertising at the bank for the 2021-2023 fiscal years. Four other suspects, including a former Bank BJB division head and several private company directors, were detained earlier in the week.

Farmers' Group and PKK in Bedulu Empowered to Process Local Food into High-Value Products

A farmers' group and a PKK women's group in Bedulu Village, Gianyar, Bali, are receiving support to develop local food processing into high-value products. The initiative, funded by the Ministry of Higher Education, Science, and Technology, aims to foster village economic independence through training in production, packaging, and digital marketing. The programme focuses on creating a robust village economy by transforming local agricultural resources into culturally significant and marketable goods.

Central Java Government Distributes 181 Adaptive Wheelchairs for People with Disabilities

The Central Java Provincial Government has distributed 181 adaptive wheelchairs to people with disabilities as part of the 81st Independence Day and provincial anniversary commemorations. Governor Ahmad Luthfi personally handed over the aids, emphasising equal treatment and opportunities for disabled individuals. The programme, a collaboration with international foundations, also includes prosthetic limbs and ongoing therapeutic support for recipients.

Revealed: The Reasons Behind PT GNI's Plan to Lay Off 1,900 Workers in Morowali

PT Gunbuster Nickel Industry (GNI) has disclosed the financial and operational reasons behind its plan to lay off 1,900 employees at its Morowali site. The company cited severe financial difficulties, including an ongoing debt payment suspension process, which has forced the shutdown of two of its three smelters. The layoffs are described as a last resort to align the workforce with reduced operational needs and ensure the company's survival.

Prabowo moved and proud of TNI-Polri's service to the people

President Prabowo Subianto expressed pride and emotion over the dedication of the Indonesian National Armed Forces (TNI) and National Police (Polri) in building basic infrastructure for the public. He highlighted the completion of thousands of bridges and clean water sources as tangible proof of their service. The President emphasised that this spirit of mutual cooperation is central to the nation's character and its path to prosperity.

'Fat Boss' Drug Lord in Kampung Bahari Hunted by BNN Since 2025

The National Narcotics Agency has arrested a fugitive drug lord known as 'Fat Boss' in North Jakarta, who had been on the run since a 2025 methamphetamine seizure. Alongside the arrest, authorities seized luxury vehicles, weapons, and cash, and are pursuing money laundering charges against the suspect. The total value of assets frozen in connection with the case is estimated at nearly IDR 40 billion.

Bunaken National Park to Temporarily Close Hiking Trails to Mount Manado Tua Summit

The Bunaken National Park Authority will temporarily close hiking access to the summit of Mount Manado Tua as a precautionary measure against forest and land fires during the dry season. The closure aims to prevent a repeat of recent fire incidents in other Indonesian national parks, with officials noting the vegetation is currently extremely dry and vulnerable. Local guides will be enlisted to help enforce the ban, which will be re-evaluated once the rainy season begins.

Sahroni Says BGN and AGO Coordination a Positive Step to Prevent Irregularities in Free Nutritious Meal Programme

House of Representatives Commission III Deputy Chairman Ahmad Sahroni has praised the coordination between the National Nutrition Agency (BGN) and the Attorney General's Office (AGO) as a positive measure to strengthen oversight of the Free Nutritious Meal (MBG) programme. The meeting, led by BGN Head Sudaryono, focused on legal assistance and field supervision to mitigate potential irregularities. Sahroni emphasised that such synergy must be consistent to ensure transparency and that President Prabowo's priority programme reaches the public without future legal issues.

Bogor Regency Government Regrets Sidewalk Damage on Sentul Alternative Road Due to Motorcycles

The Bogor Regency Government has expressed regret over damage to a newly renovated sidewalk on Jalan Alternatif Sentul, caused by motorcyclists illegally using the pedestrian facility. The Public Works and Spatial Planning (PUPR) Department plans to repair the damage and will coordinate with police to take action against violators. Local residents report that motorcyclists, particularly those dropping off schoolchildren, use the pavement as a shortcut to avoid a longer detour.

Jokowi Confirmed to Attend MPR Annual Session Tomorrow, Prabowo to Deliver State Address

Former President Joko Widodo has confirmed his attendance at the MPR Annual Session and joint session of the DPR and DPD on Friday, where President Prabowo Subianto is scheduled to deliver the state address. The session will also include the presentation of the 2027 State Budget Bill. Separately, former President Susilo Bambang Yudhoyono will miss the 81st Independence Day ceremony due to a routine medical check-up.

President Prabowo Praises General Listyo's Achievements as National Police Chief

President Prabowo Subianto has publicly endorsed National Police Chief General Listyo Sigit Prabowo, stating he deserves his position due to his achievements, dedication, and capability. The President made the remarks during a virtual address at an event inaugurating infrastructure projects built by the TNI and Polri. Prabowo emphasized that the good deeds and service of leaders are always monitored and remembered by the people.