Indonesian Political, Business & Finance News

Archive: 13 August 2026

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Chief Justice Highlights Complex Caseload, Urges MK Judges to Uphold Integrity

Constitutional Court Chief Justice Suhartoyo has noted a significant rise in public legal awareness, with the court handling 701 cases in 2025. He stressed that the growing complexity of petitions demands professional judicial processes and unwavering integrity from all court personnel. The court is also expanding digital transformation efforts, with 85% of new cases now filed online.

How to Use ChatGPT Work for MSME Operational Efficiency

OpenAI's new ChatGPT Work agentic mode offers practical solutions for Indonesian micro, small, and medium enterprises (MSMEs) to streamline daily operations. The tool can integrate data from emails, calendars, and files to summarise information, prioritise tasks, and even help develop social media strategies. This guidance was released to coincide with National MSME Day, highlighting how AI can reduce administrative burdens and support business growth.

Foreign Investors Record Net Buy of IDR 1.56 Trillion in August Despite MSCI Exclusion

Foreign investors recorded a net buy of IDR 1.56 trillion in the Indonesian stock market during the first 12 days of August 2026, despite MSCI announcing the removal of 10 Indonesian stocks from its indices. The net inflow was partly driven by accumulation in certain excluded stocks, though the full impact of the MSCI rebalancing is not expected until the changes take effect on 1 September 2026.

Kupang Secretary Explains Document Delay That Led to Council Session Postponement

Kupang's Regional Secretary admitted internal negligence, specifically by the planning agency, caused a delay in submitting the 2027 Regional Government Work Plan to the local parliament. The failure to provide the necessary documents angered councillors, leading to the indefinite suspension of a plenary session. The Deputy Speaker labelled the incident a 'humiliation' of the council, questioning how budget discussions could proceed without the foundational paperwork.

PKP Ministry and BKKBN Collaborate to Tackle Stunting Risk Through Home Renovations

The Ministry of Housing and Settlement Areas (PKP) is collaborating with the National Population and Family Planning Board (BKKBN) to address stunting by providing 3,000 home renovations for at-risk families. The initiative exceeds the BKKBN's initial request of 2,000 units and targets families living in substandard housing, which is identified as a contributing factor to stunting. The government is also simplifying administrative requirements to accelerate the programme's implementation.

Purbaya Confirms No Directive to Collect Tax on Rental Properties

Finance Minister Purbaya Yudhi Sadewa has clarified that there is no specific directive to aggressively pursue tax collection from rental properties. The statement follows public confusion over remarks by a finance ministry official, which the Directorate General of Taxes confirmed were merely an example of existing income tax obligations, not a new policy. The government maintains that income from property rentals has always been a taxable object under current regulations.

Rupiah Weakens to Rp 17,885 After MSCI Report and Slowing Retail Sales in June 2026

The Indonesian rupiah weakened to Rp 17,885 against the US dollar in early Thursday trading, pressured by a decline in domestic retail sales and anticipation of the MSCI August 2026 Index Review. Retail sales fell 3.0% year-on-year in June as consumers cut back on discretionary spending, while government data showed total central government debt reached Rp 10,293.69 trillion in the first half of 2026. The currency's movement also reflected market caution ahead of the MSCI rebalancing announcement, which could trigger fund adjustments by the end of the month.

Central Kalimantan Governor Grants Thousands of Starlink Units to Accelerate Internet Access in Remote Villages

The Central Kalimantan provincial government is distributing Starlink satellite internet devices to thousands of public facilities in remote and blank spot areas. Governor Agustiar Sabran stated the initiative aims to bridge the digital divide by providing equal access to education, healthcare, and economic opportunities. The first phase of the grant will equip elementary schools, junior high schools, and community health centres across 13 regencies and cities.

Antam Gold Bullion Price Soars to Rp 2.7 Million Level Today

The price of gold bullion produced by PT Aneka Tambang (Antam) surged to Rp 2.7 million per gram on Thursday, marking a significant daily increase. The buyback price also rose sharply, reaching Rp 2,546,000 per gram. The price movements reflect ongoing dynamics in the precious metals market.

BPK Awards Unqualified Opinion to Health and Culture Ministries, Urges Follow-Up on Recommendations

The Audit Board of Indonesia (BPK) has granted an Unqualified Opinion (WTP) on the 2025 financial reports of the Ministry of Health, the Ministry of Culture, and the management of foreign loans and grants. While acknowledging the achievement, BPK member Fathan Subchi stressed that the opinion is not the final goal and highlighted the need for both ministries to address identified internal control weaknesses and regulatory non-compliance. The BPK emphasised that its recommendations should serve as an instrument for continuous improvement in state financial governance, accountability, and public service delivery.

Drug Lord Loyalists in Kampung Bahari Fight Back, Officers Pelted with Firecrackers

A raid by Indonesia's National Narcotics Agency (BNN) in Kampung Bahari, North Jakarta, met with violent resistance from loyalists of a suspected drug kingpin. The suspects hurled firecrackers at officers, who responded by deploying tear gas. The operation resulted in several arrests and the seizure of evidence.

BNI Targets 14% Transaction Growth This Year with WondrX 2026

State-owned lender PT Bank Negara Indonesia (BNI) is aiming for a 14 per cent increase in total transactions this year, partly driven by its upcoming BNI WondrX 2026 expo. The event, scheduled for August, will feature over 370 tenants and collaborations including passport services with the immigration directorate. BNI also reported its SME loan portfolio grew 22.2 per cent year-on-year to Rp17 trillion in the first half of 2026.

Prabowo to Inaugurate 895 Bridges and National Electric Motorcycle Ecosystem Today

President Prabowo Subianto is set to inaugurate 895 'Jembatan Merah Putih Presisi' bridges and the National Electric Motorcycle Ecosystem (MOLINAS) on Thursday. The bridge projects, carried out by the police across 30 regional commands, aim to connect rural villages. The MOLINAS ecosystem encompasses the entire value chain from manufacturing and battery infrastructure to financing and after-sales services, with PT LEN acting as the lead integrator.

Rupiah Under Pressure This Morning, US Dollar Rises to Rp17,875

The Indonesian rupiah continued its decline against the US dollar on Thursday morning, trading at Rp17,875 despite easing US inflation. The currency's weakness is attributed to cautious market sentiment regarding the Federal Reserve's policy stance and potential foreign capital outflows following an MSCI index rebalancing.

Rupiah Opens Under Pressure This Morning, US Dollar Rises to Rp17,875

The Indonesian rupiah continued its decline against the US dollar on Thursday morning, weakening to Rp17,875 despite easing US inflation and a softer dollar index. Market sentiment remains cautious as traders assess the Federal Reserve's next move and the potential impact of foreign capital outflows following an MSCI index rebalancing. The currency faces additional headwinds from strong US bond yields and geopolitical uncertainty.

Pressure Sore Prevention Education Gains Focus Amid Indonesia's Ageing Population

As Indonesia's elderly population reaches an estimated 34 million, healthcare experts are emphasising the importance of pressure sore prevention for seniors with limited mobility. A recent national webinar highlighted the need for proper skin care and incontinence management to mitigate risks for this vulnerable demographic. The event, which drew over 1,000 medical professionals, also saw the introduction of new adult diaper technologies designed to keep skin dry.

US Deputy Secretary of Defence Colby Meets Prabowo at the Palace

Indonesian President Prabowo Subianto hosted US Deputy Secretary of Defence for Policy Elbridge Colby at the Merdeka Palace in Jakarta. The meeting focused on strengthening bilateral relations and partnership between Indonesia and the United States. Colby expressed optimism about advancing ties based on mutual respect and deeper cooperation.

Gold Investment Surges Past Jewellery Purchases Amid Price Rally

Investment demand for gold in Indonesia has overtaken purchases of gold jewellery as rising prices shift consumer behaviour. Economist Aviliani notes the trend is supported by the growing accessibility of bullion bank services, which allow for flexible grammage purchases without physical delivery. The development reflects a broader diversification strategy, with gold increasingly viewed as a vital asset by both the public and the state.

BPK Chair Inaugurates Historical Exhibition on the State Audit Institution

The Audit Board of Indonesia (BPK) has launched a historical exhibition in Magelang to reflect on its journey in upholding independence, integrity, and professionalism. The exhibition, titled 'Titian Muruah Bhakti', traces the institution's evolution from its conceptualisation before independence through to its modern digital transformation. It serves as a reminder of BPK's constitutional mandate to safeguard state finances and enforce accountability.

Erdogan: Israel Attempting to Remove Palestine from Global Agenda

Turkish President Recep Tayyip Erdogan has accused Israel of attempting to exploit regional chaos to remove the Palestinian issue from the international community's agenda. Following talks with Palestinian President Mahmoud Abbas in Ankara, Erdogan asserted that such efforts would fail and that support for the Palestinian struggle continues to grow. Jordan's Foreign Minister also warned that Israeli actions are pushing the Middle East towards a religious conflict.

IHSG Opens Lower After MSCI Drops 10 Indonesian Stocks from Global Indexes

The Jakarta Composite Index (IHSG) fell 0.43% in early trading on Thursday after MSCI removed ten Indonesian stocks from its global standard and small cap indexes. The rebalancing, effective 1 September 2026, saw Charoen Pokphand Indonesia and GoTo Gojek Tokopedia among those deleted. Meanwhile, investors are also awaiting US producer price data and jobless claims for further clues on the Federal Reserve's interest rate path.

IHSG Opens Higher Supported by MSCI Report, Wall Street and Asian Markets Rally

The Indonesia Stock Exchange (IHSG) opened higher on Thursday, buoyed by positive sentiment from Wall Street and Asian markets. The rally was supported by MSCI's decision to keep Indonesia in its emerging market index and strong capital expenditure plans from AI infrastructure firms. Analysts predict the IHSG could target 7,300 in the medium term if it remains above the 6,300 support level.

DJBC Performance Improvement Hailed as Positive, but Systemic Reform Urged

The Indonesian Audit Watch (IAW) has welcomed recent performance improvements at the Directorate General of Customs and Excise (DJBC) but warns against complacency. IAW founder Iskandar Sitorus argues that without fundamental systemic changes, such as the proposed National Border Economic Governance System (NBEGS), old problems could resurface. The organisation has submitted 12 initial reform recommendations to President Prabowo Subianto to ensure sustainable governance.

Hamas declares readiness for year-end Palestinian elections

Hamas has announced its intention to participate in Palestinian legislative elections scheduled for late 2026, framing the vote as a historic opportunity to end two decades of unilateral decision-making. The group insists the polls should proceed without preconditions on political programmes, while the Central Elections Commission works to ensure a free vote. The announcement comes amid a prolonged political split between Hamas in Gaza and Fatah in the occupied West Bank.

Don't Be Surprised! Indonesia Has Massive Gold Reserves Exceeding Freeport's

The Indonesian Mining Institute has revealed that Sumbawa Timur Mining's Hu'u Project in West Nusa Tenggara may hold gold reserves larger than those of PT Freeport Indonesia. The company, majority-owned by Vale S.A., has been exploring the Onto deposit under a 1998 Contract of Work for 28 years. The deposit contains significant indicated and inferred mineral resources of copper and gold.

Tabanan Police Strengthen Synergy with Customary Communities to Maintain Public Order

The Tabanan Resort Police are enhancing collaboration with traditional village institutions to bolster security across the regency's 10 districts and 133 villages. The initiative, conducted through a dialogue with the Majelis Desa Adat and pecalang security forces, aims to improve early detection and prevention of potential disturbances. The police also introduced programmes including foreign national monitoring and tested emergency response times via the 110 service.

Purbaya Promises Tighter Budget Oversight for Free Nutritious Meals Programme, Here's the Strategy

Finance Minister Purbaya Yudhi Sadewa has pledged to strengthen budget supervision for the Free Nutritious Meals (MBG) programme by leveraging the Directorate General of Treasury's regional offices. While overall implementation is considered good, the ministry has identified various shortcomings that will be reported to the National Nutrition Agency for follow-up. The programme has disbursed Rp101.1 trillion as of the end of the second quarter, reaching 63.13 million beneficiaries.

Qur'an Memorisation Challenge for Alcohol: Deputy Religious Affairs Minister Says 'Cannot Stop at Apology'

Indonesia's Deputy Minister of Religious Affairs has demanded a thorough legal investigation into a viral incident where a music festival challenge offered alcohol as a reward for reciting Qur'anic verses. The minister stressed the case must not end with an apology, citing a 2022 precedent involving the Holywings bar chain. Police have arrested two suspects, while the event organiser has condemned the unsanctioned act.

Finance Ministry Finds Financial Shortcomings in Free Nutritious Meals Programme, to Report to BGN

The Indonesian Finance Ministry has identified various financial accountability deficiencies in the Free Nutritious Meals (MBG) programme following field supervision. Minister Purbaya Yudhi Sadewa stated the findings will be reported to the National Nutrition Agency (BGN) to improve future regulations. The ministry utilised its regional treasury offices to survey the Nutritional Fulfilment Service Units (SPPG).

Pekanbaru City Government Receives Aid to Renovate 250 Uninhabitable Homes

The Pekanbaru City Government has secured second place in a regional government performance award, which includes assistance to renovate 250 uninhabitable houses for residents. Mayor Agung Nugroho emphasised that the award reflects collective efforts and will deliver tangible benefits to the community. The recognition adds to the city's previous achievement in stunting reduction performance.

Stock Market Needs a Buffer: Can Pension Funds and BPJS Be the Answer?

Domestic institutional investors such as pension funds, insurance companies, and BPJS Ketenagakerjaan are seen as potential long-term buffers for the Indonesian stock market. Analysts argue that gradually increasing their equity allocations could strengthen domestic liquidity and reduce reliance on volatile foreign capital. However, they caution that such investments must be managed prudently, considering risk and long-term obligations.

Daily Stock Recommendations: PTRO, BRPT, TUGU Among Picks as IHSG Strengthens

The Jakarta Composite Index (IHSG) closed 1.69% higher at 6,373.85 on Wednesday, buoyed by gains in BREN, DCII, and BRPT. Mega Capital Sekuritas has issued buy recommendations for several stocks including Petrosea (PTRO), Barito Pacific (BRPT), and Tugu Insurance (TUGU), citing specific entry and target price levels. The market also digested the MSCI August 2026 Index Review, which saw GOTO removed from the Global Standard Index and CPIN downgraded, with changes effective after 31 August 2026.

KMO Indonesia Launches Digital Ecosystem for Writers with Festival and AI Publishing

Indonesian writing community KMO Indonesia held a national literacy festival and writing competition to mark the soft launch of its new digital platform, KMO App. The initiative aims to build an integrated ecosystem for writers, covering learning, creation, and monetisation. The platform also introduces AI-powered publishing technology to streamline the editing and production process.

US Deficit Explodes to Rp 7,700 Trillion, Debt Reaches Rp 713 Quadrillion

The United States federal budget deficit surged to its highest monthly level in over five years, reaching US$432.3 billion in July 2026. This sharp increase was driven by soaring Medicare costs and mounting interest payments on the national debt, which has now surpassed US$39.9 trillion. The deteriorating fiscal position comes as cumulative interest payments on the debt have become the government's third-largest expense category.

BNN Raids Drug Lord in Kampung Bahari, Met with Fireworks Resistance

Indonesia's National Narcotics Agency (BNN) conducted a raid in Kampung Bahari, North Jakarta, targeting a major drug lord identified as MR. The operation, which began early Thursday morning, faced violent resistance from the suspect's loyalists who attacked officers with fireworks. Authorities responded with tear gas and have since secured the area, taking several individuals including the drug boss into custody.

Japan Urges Iran to Guarantee Free Navigation in Strait of Hormuz Without Levies

Japanese Prime Minister Sanae Takaichi has called on Iran to ensure free and safe passage through the Strait of Hormuz without additional costs, while also urging restraint from Houthi forces in Yemen. The appeal comes amid ongoing diplomatic efforts to de-escalate military tensions and revive negotiations between Iran and the United States.

Acting Head of Pulau Beringin Religious Affairs Office Murdered in Dispute Over Parking and Coffee Beans

The Acting Head of the Pulau Beringin Religious Affairs Office (KUA) in South Sumatra was stabbed to death following a dispute over a parked car that allegedly ran over coffee beans. Police arrested two suspects within 12 hours of the incident. The suspects face up to 15 years in prison under Indonesia's criminal code.

When AI Assists Students, Who Is Actually Thinking?

The integration of generative AI in higher education raises fundamental questions about the nature of learning. While AI can efficiently produce essays and summaries, it risks bypassing the critical thinking processes that education is meant to cultivate. The article explores whether reliance on AI for cognitive tasks could lead to a decline in students' analytical abilities, drawing on principles of neuroscience and cognitive psychology.

Immigration Office Promotes Cross-Agency Data Sharing Services

The Tanjung Priok Immigration Office is spearheading efforts to enhance inter-agency coordination by socialising its immigration data services. The initiative aims to strengthen data utilisation and integration among government bodies to improve public service delivery. Officials emphasised the importance of accurate, secure data exchange to support more effective and responsive governance.

Home Affairs Minister Tito Karnavian Opens Collaboration to Appreciate High-Performing Regional Governments

Minister of Home Affairs Tito Karnavian has invited ministries and state institutions to collaborate in recognising high-performing regional governments. The initiative aims to broaden the forms of appreciation beyond the ministry's own awards, encouraging local administrations to improve public services and development. The latest awards focused on environmental management, health, education, and the implementation of the national housing programme.

Keraton Solo and the Ethics of Power

The Keraton Kasunanan Surakarta is facing a succession crisis after the death of Pakubuwono XIII, with two princes claiming the throne and violence erupting publicly. This article argues that the core issue is not merely who is entitled to the crown, but the absence of a legitimate, trusted mechanism to determine succession. Drawing parallels with the evolution of the English parliament and Islamic principles of consultation, it suggests the Keraton needs a credible deliberative body to resolve disputes and uphold ethical governance.

Pertamina Offers Bright Gas Discounts During Independence Month

PT Pertamina Patra Niaga is offering discounts on Bright Gas refills during a promotional period from 15 to 23 August 2026 to celebrate Indonesia's Independence Month. Customers can receive a discount of Rp4,050 on 5.5 kg canisters and Rp8,100 on 12 kg canisters at Bright Stores and via the Klik Indomaret online platform. The company hopes the 'Semarak Merdeka MyPertamina' programme will encourage more households to use its high-quality LPG product.

Coal Prices Lose Direction Amid China's Weak Restocking Demand

Global coal prices are stagnating as reduced Chinese restocking demand and falling exports from Australia's Newcastle port weigh on the market. While thermal coal prices in northern China have firmed due to tight supply, further gains are seen as limited.

Ministry of Home Affairs Awards Local Governments in Sumatra for Health, Housing, Waste, and Education Achievements

The Indonesian Ministry of Home Affairs has recognised local governments in Sumatra for outstanding performance in four key areas: healthcare access, implementation of the national 3 Million Houses programme, waste management, and education. The awards, presented at the second batch of the 2026 Regional Government Achievement Appreciation event in Batam, include fiscal incentives for top performers. Minister Tito Karnavian highlighted that the categories align with President Prabowo Subianto's Asta Cita national development missions.

On World Elephant Day, Forestry Minister Launches Conservation Strategy for Sumatran and Kalimantan Elephants

Indonesia's Forestry Minister launched a 10-year conservation strategy for Sumatran and Kalimantan elephants on World Elephant Day. The document serves as a collaborative guide for protecting elephant populations and their habitats. The strategy aims to address habitat loss, human-elephant conflict, and population decline through coordinated efforts across government, businesses, and communities.

Finance Minister Purbaya Urges BKPM to Regulate Forest Utilisation to Boost Aceh's Regional Revenue

Finance Minister Purbaya Yudhi Sadewa has requested the Ministry of Investment and Downstreaming (BKPM) to prepare regulations for the utilisation of production forests in Aceh Jaya. The request aims to resolve a licensing impasse faced by a pine resin exporter, PT Ika Trias Serangkai, which is struggling to secure a permit for a 44,715-hectare area. The resolution of this case is expected to set a precedent for similar issues and unlock business potential to increase local revenue in Aceh.

Ziswaf and the Growth of the Sharia Economy

The growth of Indonesia's sharia economy and the increase in Ziswaf (Zakat, Infaq, Alms, and Waqf) collections are mutually reinforcing, not separate trends. Data from 2021 to 2025 shows a strong positive correlation between the expansion of the halal value chain and a surge in philanthropic fund collection, which reached a record Rp44.69 trillion. This relationship creates a cycle where economic growth expands the donor base, and the redistributed funds then fuel grassroots consumption and economic resilience.

Asian Markets Open Higher Ahead of US Inflation Data

Most Asian stock markets opened higher on Thursday as investors awaited the release of key US producer price data. The positive sentiment follows a US consumer inflation report that met expectations, reducing immediate fears of aggressive monetary tightening. Market participants are now recalibrating expectations for the timing of the next potential interest rate hike.

Badung Regency Deploys 75 Personnel to Maintain 25 Heroes' Monuments

The Badung Regency Government has assigned 75 workers to maintain and clean 25 heroes' monuments across the region. The initiative involves routine cleaning every two days and planned phased renovations. The programme aims to preserve historical sites and uphold the spirit of the nation's founders.

KAI Offers 17% Discount on Long-Distance Trains and Rp8 Fare for 81st Independence Day

State-owned railway operator PT Kereta Api Indonesia (KAI) is launching a promotional campaign for the 81st Independence Day, featuring a 17% discount on commercial economy long-distance train tickets and a special Rp8 fare for LRT Jabodebek and Commuter Line services on 17 August 2026. The initiative aims to broaden public access to affordable transport and encourage participation in the national celebrations.