Indonesian Political, Business & Finance News

Archive: 13 August 2026

Showing 1,401-1,450 of 1,577 articles

Government to Restrict Subsidised Pertalite Fuel for Wealthiest Groups

The Indonesian government is planning to restrict the purchase of subsidised Pertalite fuel for the top two income brackets, desil 9 and 10, to ensure subsidies are better targeted. The restriction will apply to luxury vehicles but not to motorcycles, according to Energy and Mineral Resources Minister Bahlil Lahadalia. The policy aims to reduce the burden of the multi-trillion rupiah subsidy on the state budget.

XLSmart Accelerates 5G Base Station Build, Users Spend More

XLSmart reported a nearly fourfold surge in normalised net profit to Rp 2.73 trillion in the first half of 2026, driven by its post-merger integration and network expansion. The telecoms group saw blended average revenue per user rise to Rp 47,100 as data traffic grew, while it continued to roll out 5G services to 52 cities. The company also realised US$153 million in merger synergies, largely from network and operational cost savings.

Constitutional Law Expert Warns Against Twisting the Constitution

Constitutional law expert Fritz Edward Siregar has cautioned against any attempt to remove Vice President Gibran Rakabuming Raka through constitutional manipulation or public pressure. He emphasised that the President has no authority to dismiss the Vice President, as both are elected as a pair by the people. Siregar also affirmed that the Constitutional Court's ruling on the vice-presidential candidacy remains legally binding and should not be used to fuel impeachment narratives.

Purbaya Speaks Candidly on Planned Pertalite Purchase Restrictions, Cites DPR Pressure

Finance Minister Purbaya Yudhi Sadewa has clarified that the planned restrictions on subsidised Pertalite fuel aim to improve subsidy targeting, not to raise prices. The policy, which responds to parliamentary concerns over leakages, will be implemented gradually to assess its economic impact. The government intends to direct consumers in the top two income deciles towards non-subsidised fuels.

Mysterious Hooded Man's Arson Spree Continues in Bandung-Cimahi

A series of apparently random arson attacks by an unidentified man has plagued the neighbouring cities of Bandung and Cimahi for nearly two weeks. The suspect, captured on CCTV wearing a black hoodie and carrying a backpack, has targeted motorcycles, vendor carts, and residential property in the early hours. Police are intensifying their investigation, confirming a likely link between the latest incident in Cijerah and previous attacks in Andir and Astanaanyar.

Reclaiming the Glory of Tombo Coffee in Batang

The village of Tombo in Batang, Central Java, is spearheading a revival of its historic coffee industry, which once thrived during the Dutch colonial era and peaked with exports in the 1990s. A new collaborative programme involving the local government, forestry services, and private sector is introducing Arabica coffee cultivation to complement the traditional Robusta variety. The initiative aims to boost the local economy through sustainable agroforestry while preserving the environment.

Indonesia's Forgotten Rare Earth Minerals: Danantara CTO Reveals Major Potential

Indonesia possesses significant untapped reserves of rare earth elements (REE), a critical mineral previously thought to be absent from the country. The government, through the Indonesia Investment Authority (Danantara), is now planning a dedicated directorate general to manage the entire value chain, from extraction to downstream processing. The initiative aims to achieve national self-sufficiency in separating these elements, which are vital for electric vehicle components and other high-tech industries.

LRT City Issues Prompt Danantara to Summon ADHI Management

Danantara's COO has summoned the management of state-owned construction firm Adhi Karya to address mounting public complaints regarding the LRT City housing projects. The meeting focused on resolving consumer grievances, including stalled construction and failed unit handovers, with a directive to strengthen communication with residents. Consumers from various LRT City projects have reported waiting years for their units and are demanding full refunds.

IAW Proposes 8 Key Pillars to Strengthen Oversight and Performance of State Institutions

Indonesian Audit Watch (IAW) has proposed eight foundational pillars aimed at improving the performance and oversight of the Directorate General of Customs and Excise. The organisation argues that structural changes alone are insufficient without addressing data integrity, accountability, and risk management. The recommendations emphasise data as a strategic asset, integrated yet accountable systems, and a clear separation of functions to prevent abuse of power.

Three Men in East Nusa Tenggara Face Multiple Charges for Burning Owl Alive

Three men in West Manggarai, East Nusa Tenggara, have been arrested and face multiple charges after a video of them torturing and burning an owl alive went viral. The suspects claimed they were acting on a local superstition that the owl was a harbinger of black magic. Police are coordinating with conservation authorities and prosecutors as they prepare to formally name the trio as suspects.

Jakarta Air Quality Unhealthy, Residents Advised to Wear Masks

Jakarta's air quality has reached unhealthy levels, with the AQI hitting 156, prompting health advisories for residents. The DKI Jakarta provincial government is implementing three main strategies to tackle pollution, focusing heavily on the transport sector which accounts for 50 per cent of emissions. Plans include expanding bus services, electrifying the public transport fleet, and accelerating waste processing facility projects.

KMP Putri Yasmin Drifts into Indian Ocean After Fire; KNKT Launches Investigation

The Indonesian ferry KMP Putri Yasmin, which caught fire off the coast of West Lombok, has drifted into the Indian Ocean due to strong currents. Search and rescue operations continue for a further seven days, with 212 people evacuated so far. The National Transportation Safety Committee (KNKT) has arrived on site to investigate the cause of the blaze, while the Transport Minister has urged the public not to speculate on the cause.

1.3 Tonnes of Ketamine Destroyed, Minister Djamari Calls It a Gift for Indonesia's 81st Independence Day

Coordinating Minister for Political and Security Affairs Djamari Chaniago praised the joint forces for foiling the smuggling of 1.3 tonnes of ketamine aboard the MV King Sun in the Riau Islands. The minister stated that the successful operation, involving the Navy, BNN, Customs, and Police, serves as a crucial Independence Day gift and proof of strong inter-agency synergy. He emphasised that the dismantling of the transnational smuggling network sends a clear message that Indonesian waters cannot be used for illicit drug trafficking.

Bromo Fire Expands, 942 Hectares of Land Scorched

A wildfire within the Bromo Tengger Semeru National Park has expanded, burning approximately 942 hectares of land. Firefighting efforts are being intensified, with resources deployed from multiple regions across East Java. Authorities are urging the public and visitors to exercise extreme caution to prevent further fires during the dry season.

Zulhas Recounts George Soros's $50 Million Environmental Aid Offer That Went Unused

Coordinating Minister Zulkifli Hasan revealed that during his tenure as Forestry Minister, investor George Soros offered US$50 million to support Indonesia's environmental programmes. The funds were intended to bridge complex disbursement requirements linked to a separate agreement with Norway. However, Zulhas admitted the money was never utilised due to persistently complicated bureaucratic procedures.

Zulhas Recounts George Soros Visit, Indonesia Offered US$50 Million

Coordinating Minister for Food Zulkifli Hasan revealed that global investor George Soros once offered US$50 million in funding for Indonesia's environmental programmes during his tenure as Forestry Minister. The funds were intended to bridge a complex disbursement process with Norway, but were ultimately never utilised due to stringent requirements. The remarks were made as the government reaffirmed its commitment to climate financing through the Green Climate Fund.

President Prabowo to Inaugurate 895 Village Bridges, Opening Access for Two Million Citizens

President Prabowo Subianto is set to virtually inaugurate 895 inter-village bridges built across Indonesia, a project spanning a total length of 19.2 kilometres. The bridges, constructed under a police community service programme, will connect 1,314 villages and directly benefit approximately two million people. The initiative aims to improve access to education, healthcare, and economic centres while enhancing regional connectivity.

1,297 Merah Putih Cooperative Buildings in Central Java Stand on Protected Rice Fields

The Central Java provincial government has revealed that 1,297 buildings for the Merah Putih Village Cooperatives (KDKMP) have been constructed on protected rice fields (LSD), which are legally prohibited from being converted. Authorities are currently mapping and collecting data on these structures, with plans to consult the Ministry of Agrarian Affairs and Spatial Planning for a resolution. The cooperatives were established through village deliberations, and the construction was carried out by a state-owned company.

Fake Online Arisan Syndicate Worth Rp71 Billion Uncovered in East Java, Influencers Involved in Promotion

East Java Police have exposed a fraudulent online arisan syndicate that defrauded hundreds of victims of an estimated Rp71 billion. The scheme, operated by a woman from Bali, lured victims with fake testimonials and endorsements from public figures and influencers. Police are now summoning the celebrities involved to determine the extent of their cooperation with the main suspect.

Two Foreign Nationals Flee Without Paying for Massage in Canggu, Police Investigate

Police in Bali are investigating two foreign nationals who allegedly fled a Canggu massage salon without paying. The incident occurred in mid-July but gained public attention after a video of the dispute went viral, prompting calls for their deportation. Authorities are currently tracking the vehicle used by the suspects.

Pertamina Offers Discounts on 5.5 Kg and 12 Kg LPG Refills for Independence Day

State energy firm Pertamina is offering discounts of up to Rp8,100 per canister on Bright Gas LPG refills as part of its 'Semarak Merdeka MyPertamina' programme. The promotion runs from 15 to 23 August 2026 at Bright Stores and via Klik Indomaret. The initiative is intended as a gesture of appreciation for customers during the Independence Day period.

Saudi Arabia Reroutes Oil Exports via Egypt Amid Red Sea Tensions

Saudi Arabia is diverting oil exports through a pipeline across Egypt to the Mediterranean to bypass Houthi threats in the Red Sea. Exports from Egypt's Sidi Kerir port more than doubled in August, signalling a strategic shift rather than a temporary measure. The rerouting adds significant transit time for Asian-bound cargoes and is reshaping global oil trade flows.

BGN Opens Special Channel for Teachers to Report Complaints on Free Nutritious Meals via Email

Indonesia's National Nutrition Agency (BGN) has established a dedicated email channel for teachers to report complaints, findings, and feedback regarding the Free Nutritious Meals (MBG) programme. The initiative aims to enhance oversight and encourage public participation in the programme's implementation. Teachers are seen as vital frontline observers who can provide direct insights from schools to help improve service quality.

Repeated Ship Fires Prompt Lawmaker to Demand Evaluation of Sailing Permit Regulations

A member of Indonesia's House of Representatives has called for a comprehensive review of maritime safety governance following a series of recent ship accidents. The legislator specifically urged the government to evaluate a ministerial regulation on sailing permits, arguing it is too focused on administrative declarations rather than mandatory physical inspections. The call comes after the latest incident involving a passenger ferry that caught fire off the coast of West Lombok.

Golkar Confident Prabowo Will Choose Professionals for Cabinet, PKS Responds

Golkar Secretary-General Muhammad Sarmuji expressed confidence that President Prabowo Subianto will select professional figures for his cabinet, regardless of their political or non-political backgrounds. This follows a statement from PKS official Mardani Ali Sera, who supported recruiting new individuals based on merit and integrity rather than party affiliation. Both politicians emphasised that cabinet appointments are the president's prerogative.

10 Expert Recommendations to Develop Indonesia's Gold Downstream Industry

Chairman of Indonesia Mining (IMI) Irwandy Arif has outlined ten strategic recommendations to transform Indonesia's gold sector beyond mere trading. The proposals include integrating mining reserves, standardising refinery quality, and utilising gold as a financial instrument. The expert also highlighted the need to reform illegal mining, which currently accounts for 100 tonnes of annual production, to boost state revenue.

Prabowo to Inaugurate 895 'Red and White' Precision Bridges Today

President Prabowo Subianto is set to virtually inaugurate 895 'Merah Putih Presisi' bridges, a community-driven infrastructure programme led by the Indonesian National Police. The bridges, spanning a total of 19.2 kilometres, connect 1,314 villages and benefit approximately two million people by improving access to schools, healthcare, and economic centres. The government praised the initiative as a collaborative effort involving the police, military, local governments, and communities to address basic infrastructure needs in rural areas.

Why GOTO Shares Are Stuck at Rp50

Shares of Indonesian tech giant GoTo Gojek Tokopedia (GOTO) have been stagnant at Rp50 for nearly three months, weighed down by global macroeconomic headwinds and technical factors. Despite the company posting consecutive quarterly profits and planning a Rp3.5 trillion share buyback, the stock price remains under pressure from geopolitical tensions and potential MSCI index exclusion risks. Management insists the current valuation does not reflect the firm's improving fundamentals.

Foreign Investors Spotted Offloading These Shares as JCI Rises 1.69%

Foreign investors engaged in significant selling of several Indonesian blue-chip stocks ahead of the MSCI August 2026 Index Review, despite the Jakarta Composite Index (JCI) closing 1.68% higher. Bank Mandiri led the net sell list with outflows of Rp245.7 billion, followed by Telkom Indonesia and Medco Energi. The selling pattern suggests a portfolio rotation rather than a broad market exit, as overall foreign transactions still recorded a net buy of Rp725.4 billion.

DWP Kemenko PM Provides Moral Support to Children Battling Cancer

The Dharma Wanita Persatuan of the Coordinating Ministry for Community Empowerment (DWP Kemenko PM) visited the Indonesian Children's Cancer Care Foundation (YKAKI) to offer moral support to young cancer patients. The group's advisor, Rustini Muhaimin, encouraged the children to remain hopeful and praised their courage during treatment. She also expressed deep appreciation for the parents' dedication and the foundation's vital role in providing care and comfort.

National Electric Motorcycle to Launch Today

President Prabowo Subianto is scheduled to launch Indonesia's national electric motorcycle brand today at a factory in Cikarang, West Java. The launch is expected to coincide with the announcement of government incentives for 500,000 electric vehicles. The initiative aims to boost domestic manufacturing and encourage adoption of environmentally friendly transport, including among farmers.

Transforming a Stopover into a Stay: Surabaya's MICE Strategy

Surabaya is looking to shift its MICE (Meetings, Incentives, Conventions, and Exhibitions) strategy from merely providing meeting spaces to creating immersive experiences that encourage longer stays. While hotel occupancy rates are high, the average guest stay is only 1.4 nights, indicating a need to convert business travellers into tourists. The city aims to integrate local attractions, culinary experiences, and cultural tours into conference packages to boost the broader local economy.

Prabowo to Inaugurate National Electric Motorcycle Ecosystem at ALVA's Cikarang Base

President Prabowo Subianto is set to inaugurate the National Electric Motorcycle Ecosystem (MOLINAS) at PT Ilectra Motor Group's facility in Cikarang, West Java. The initiative aims to integrate the entire value chain, from manufacturing and battery production to financing and after-sales service, with state-owned PT Len Industri acting as the lead integrator. The government expects the programme to strengthen downstream industry, boost domestic manufacturing, and support energy security by reducing reliance on fossil fuels.

Purbaya Confirms Online Motorcycle Taxis Exempt from Pertalite Restriction Policy

Finance Minister Purbaya Yudhi Sadewa has confirmed that online motorcycle taxi drivers will be exempt from the government's planned restrictions on subsidised Pertalite fuel. The policy, which will be implemented gradually, specifically targets high-income groups in the ninth and tenth deciles. The government aims to ensure subsidy distribution is more accurately targeted, following a directive from the House of Representatives.

Minister Encourages Universities to Drive Innovation in Transmigration Areas

Transmigration Minister M. Iftitah Sulaiman Suryanagara has called on universities to turn transmigration areas into 'living laboratories' for research and innovation. He stressed that academic knowledge must directly benefit communities by developing local potential and creating new economic opportunities. The initiative aims to transform transmigration sites into new centres of economic growth through collaboration across various disciplines, from agriculture to technology.

Immigration to Raise Visa on Arrival Fees to Rp1 Million

The Directorate General of Immigration plans to increase Visa on Arrival (VoA) fees, with rates rising to Rp750,000 for online applications and Rp1 million for on-site processing. The adjustment aims to reflect currency fluctuations and encourage foreign nationals to apply online before travelling to Indonesia. The move is also intended to streamline arrivals and prevent queues at airport immigration checkpoints.

IDX Papua hopes gold ETF launch will broaden public investment access

The Indonesia Stock Exchange (IDX) Papua office expects the newly launched gold Exchange-Traded Fund (ETF) to widen public access to gold investment through the capital market. The instrument allows investors to gain exposure to gold without needing to buy and store physical bullion. Officials hope it will improve financial literacy in Papua and provide a new alternative suited to varying risk profiles.

Prabowo to Inaugurate National Electric Motorcycle Ecosystem Today

President Prabowo Subianto is set to inaugurate the National Electric Motorcycle (Molinas) ecosystem at an ALVA production facility in Cikarang, marking a significant step in accelerating the country's battery-based electric vehicle industry integration. The initiative, led by state-owned PT Len Industri as the lead integrator, aims to develop a comprehensive ecosystem spanning manufacturing, battery technology, charging infrastructure, and financing. The government expects the programme to strengthen downstream industries, boost domestic supply chains, and create jobs while supporting energy resilience by reducing fuel dependency.

Environment Ministry Issues Circular Banning Land Clearing by Burning to Prevent Forest Fires

The Indonesian Ministry of Environment has issued a circular strictly prohibiting land clearing by burning to mitigate forest and land fires during the El Nino phenomenon. The directive instructs regional heads to enforce the ban, impose sanctions on violators, and implement preventive measures such as monitoring peatland water levels. The policy is based on the 2009 Environmental Protection and Management Law.

Mystery of Crouching Man with Pistol in Ciputat Investigated by Police

Police in South Tangerang are investigating a viral video showing a man behaving suspiciously while holding an object resembling a pistol near a flyover in Ciputat. Witnesses claimed they were unaware of the incident until shown the footage, and local residents suspect the man may have been playing with a toy gun or could be suffering from a mental disorder.

President to Inaugurate 895 Inter-Village Bridges Today

President Prabowo Subianto is set to virtually inaugurate 895 bridges connecting villages across Indonesia, a project completed under the police's 'Jembatan Merah Putih Presisi' programme. The bridges, built by 30 regional police forces, aim to improve access for approximately 2 million people to education, healthcare, and economic centres. The government highlighted the collaborative effort involving the military, local authorities, and community volunteers.

ASEAN's Most Visited Nations: Indonesia Trails Far Behind Malaysia

Malaysia has emerged as Southeast Asia's top tourist destination in 2025, recording 42.2 million visits and overtaking Thailand. Indonesia ranked fifth with 15.4 million visits, highlighting a significant gap in the region's competitive tourism sector despite a year-on-year increase.

House Speaker Puan Reveals BI Official Candidates Beyond Destry Damayanti

House Speaker Puan Maharani has disclosed the full list of candidates for Bank Indonesia's leadership, confirming President Prabowo Subianto has submitted names for multiple senior positions. The presidential letter proposes Destry Damayanti as the sole candidate for BI Governor, alongside Aida S. Budiman for Senior Deputy Governor and two candidates for Deputy Governor. The House of Representatives will begin processing the nominations, including fit and proper tests, after the new session opens on 14 August.

Constitutional Court Rules Insult Charges Against President, VP Must Be Filed by the Individuals Themselves

Indonesia's Constitutional Court has clarified that criminal complaints regarding insults to the honour or dignity of the president and vice president can only be processed if filed directly by the head of state or their deputy. The ruling partially granted a judicial review petition against the new Criminal Code, asserting that no third party, including supporters or family, may initiate such cases on their behalf. The court emphasised this interpretation is necessary to prevent the law from being misused to intimidate citizens and stifle public criticism.

GoPay named among world's top 500 fintech companies

Indonesian digital wallet GoPay has been included in the World's Top Fintech Companies 2026 list by Statista and CNBC. The recognition follows strong domestic performance, with monthly active users reaching 28.8 million and transactions surging 91% to 2.4 billion in the second quarter of 2026. The achievement underscores the growing global prominence of Indonesia's financial technology sector.

Habib Bahar bin Smith Condemns Ad-Dhuha Challenge with Alcohol Prize, Visits TSP Venue

Islamic cleric Habib Bahar bin Smith visited The Sounds Project (TSP) venue in Ancol, North Jakarta, to protest a viral challenge that offered alcohol as a prize for reciting a Quranic verse. He demanded that those responsible be held accountable and insisted the matter not be dismissed as a mere social media controversy. The incident has sparked widespread condemnation over the perceived desecration of a religious text in an entertainment setting.

Bank Mandiri's KUR Disbursement Reaches Rp25.6 Trillion, 56,000 Debtors Graduate

State-owned Bank Mandiri reported that 56,043 micro-business debtors graduated to higher financing schemes between January and July 2026. The bank's total People's Business Credit (KUR) disbursement reached Rp25.63 trillion, equivalent to 62.5% of its annual target. The lender emphasised that sustainable empowerment of MSMEs is a cornerstone of the Indonesian economy, supported by digital solutions and ecosystem synergies.

Yesterday: Vocational programme selection to rare earth magnet factory

Indonesia is advancing several economic initiatives, including the fourth phase of the National Vocational Training selection and a plan to build a permanent magnet factory from rare earth elements. The government is also strengthening budget oversight for the free nutritious meal programme and preparing a ministerial decree on service fee discounts for small businesses. These developments highlight a focus on workforce development, downstream mineral processing, and support for micro enterprises.

Megawati Declines Cabinet Role, Gerindra Insists Familial Ties Remain Strong

The Gerindra Party has expressed respect for Megawati Soekarnoputri's decision to keep PDI-P outside President Prabowo Subianto's cabinet, framing it as a healthy democratic check. Megawati clarified that under Indonesia's presidential system, her party acts as a 'balancer' rather than an opposition. Gerindra emphasised that political differences will not erode the long-standing personal friendship and sense of national kinship between Prabowo and Megawati.

Serang Regency Government Discovers 1,500 People in Online LGBT Communities

The Serang Regency administration in Banten has identified approximately 1,500 individuals participating in online LGBT communities, based on reports from social observers. The government plans to implement a 'humanist' guidance programme through social and health agencies, while firmly warning the public against vigilantism. Officials are also consolidating community and religious leaders to synergise on educational prevention efforts, framing the issue as a non-military threat to sovereignty.