Indonesian Political, Business & Finance News

Archive: 13 August 2026

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DPR Pledges Solemn 14 August MPR Annual Session, No Dance Music

The organising committee for the 2026 MPR-DPR-DPD Joint Annual Session has vowed a solemn event, restricting music to national and regional songs to prevent a repeat of last year's dancing incident. The decision follows an evaluation of the 2025 session, where delegates' dancing to popular music sparked public backlash and subsequent demonstrations. DPR Speaker Puan Maharani confirmed the commitment to a more dignified ceremony, noting that 1,200 participants are expected, including special guests who are beneficiaries of government programmes.

Prabowo to Inaugurate National Electric Motorcycle Ecosystem in Cikarang

President Prabowo Subianto is set to launch the National Electric Motorcycle Ecosystem (MOLINAS) at ALVA's production facility in Cikarang, West Java. The initiative aims to integrate the entire value chain, from manufacturing and battery production to financing and after-sales services, with state-owned PT Len Industri acting as the lead integrator. The government expects the programme to strengthen downstream industry, reduce fuel dependency, and create jobs while involving small businesses and cooperatives.

Drug Courier Arrested at Pekanbaru Airport with Methamphetamine in Suitcase

A 36-year-old man was arrested at Sultan Syarif Kasim II Airport in Pekanbaru after aviation security discovered five packages of methamphetamine hidden in his luggage. The suspect, identified as AY, had concealed the drugs inside folded jeans and was en route from Aceh to Jakarta. Authorities are continuing to investigate the origins and network behind the narcotics shipment.

Jakarta's Air Ranks Sixth Worst in the World Early This Morning

Jakarta's air quality was ranked the sixth worst globally on Thursday morning, with an AQI of 156, placing it in the unhealthy category. The city administration is implementing three main strategies to tackle pollution, including expanding public transport and accelerating waste management projects. Governor Pramono Anung is targeting the operation of 10,000 electric buses by 2030 to significantly reduce transport emissions, which currently account for half of the city's total.

Chinese AI Startup Manus to Become Independent After Meta Acquisition Blocked

Chinese AI startup Manus is set to become an independent company after Beijing ordered the cancellation of its acquisition by Meta. The deal, announced in December, was investigated by Chinese authorities for potentially violating foreign investment rules. The case highlights intensifying US-China rivalry over AI technology and talent.

Diskominfo Kukar Employee Sets Office Ablaze After Photo Mocked as WhatsApp Sticker, Losses Reach IDR 2 Billion

A 24-year-old outsourced employee of the Kutai Kartanegara Communication and Informatics Office (Diskominfo) has been arrested for allegedly setting fire to a meeting room, causing an estimated IDR 2 billion in damages. The suspect, identified as MFA, reportedly acted out of frustration after his photo was repeatedly used as a mock WhatsApp sticker by colleagues. Police confirmed the arson was a direct result of prolonged workplace bullying, with no other motives involved.

Gowa Regent Responds to DPRD Inquiry Committee's Impeachment Recommendation

Gowa Regent Sitti Husniah Talenrang has addressed the Regional House of Representatives (DPRD) following its unanimous decision to recommend her impeachment. The DPRD's special committee on the right of inquiry cited various governance issues, including alleged corruption in a school uniform procurement project. The regent stated her respect for the legal process while hinting at undisclosed facts, as the proposal now moves to the Supreme Court for review.

Yesterday: Bongal Site Discovery to KMP Yasmin Passenger Evacuation

A roundup of key news from Wednesday includes an archaeological discovery in North Sumatra that could reshape the historical narrative of Islam in the archipelago. Other highlights cover the successful evacuation of 106 passengers from a burning ferry in the Lombok Strait and a Sumatran tiger captured after preying on livestock. The news digest also features a fire at a government building in Central Kalimantan and a university rector's remarks on the importance of communication skills.

MSCI Maintains Indonesia's Status as Emerging Market in 2026 Annual Review

Morgan Stanley Capital International (MSCI) has confirmed that Indonesia will retain its classification as an Emerging Market following its 2026 Annual Country Review. The global index provider stated there would be no changes to the list of countries in the MSCI Frontier Emerging Markets Index. Indonesia remains grouped with other Asia-Pacific emerging markets such as China, India, and South Korea.

Global Gold Buying Frenzy Sends Prices Soaring

Senior economist Aviliani from INDEF has stated that a wave of large-scale gold purchases by various nations is driving up global bullion prices. She noted that countries with large foreign exchange reserves and weakening currencies are increasingly turning to gold as confidence in the US dollar wanes. Amid this surge, she cautioned that Indonesia must anticipate commodity price fluctuations and continue its downstreaming strategy to maintain added value.

Islamic Finance Literacy and Inclusion Decline in 2026, KNEKS Evaluates

Indonesia's 2026 National Survey of Financial Literacy and Inclusion (SNLIK) recorded a slight decline in Islamic financial literacy to 43.07 percent and inclusion to 13.24 percent, while conventional finance metrics improved. KNEKS Director Sutan Emir Hidayat attributed the drop partly to expanded survey sampling down to the provincial level, but stressed that fundamental issues like limited access, service innovation, and physical presence remain key barriers to converting Islamic financial literacy into actual inclusion.

Foreign Investors Snap Up Indonesian Shares Ahead of MSCI Announcement

Foreign investors recorded a net buy of Rp725.4 billion in the Indonesian stock market on 12 August 2026, ahead of the Morgan Stanley Capital International (MSCI) August 2026 Index Review. The buying was concentrated on large-cap stocks, with PT Bank Central Asia Tbk (BBCA) leading the purchases at Rp262.9 billion. The MSCI review ultimately saw no Indonesian additions to the Global Standard Indexes, while PT GoTo Gojek Tokopedia Tbk (GOTO) and PT Charoen Pokphand Indonesia Tbk (CPIN) were removed from the category.

BGN Chief: Food Safety Paramount in Free Nutritious Meal Programme

The Head of the National Nutrition Agency (BGN), Sudaryono, has stressed that food safety is the foremost priority in the Free Nutritious Meal (MBG) programme, ahead of nutritional content. He stated that the agency is strengthening its food safety systems and aims for zero incidents of food poisoning among beneficiaries. Strict protocols are now in place, including mandatory labelling of consumption time limits and a rule that any meal with a single questionable component must be entirely discarded.

Business Owners Complain of Steep Depot Fees, Purbaya to Summon Transport Minister

Finance Minister Purbaya Yudhi Sadewa has pledged to summon the Transport Minister after container depot operators reported a tariff discrepancy potentially costing the industry Rp4.8 trillion annually. The issue involves a significant difference between lift-on and lift-off charges for empty containers inside and outside ports. Purbaya has ordered an investigation and demanded the removal of regulations allowing foreign shipping lines to operate empty container depots.

Prabowo to Inaugurate 895 'Merah Putih Presisi' Bridges Virtually Today

President Prabowo Subianto is set to virtually inaugurate 895 'Merah Putih Presisi' bridges across Indonesia on Thursday, with the main ceremony centred in Lebak Regency, Banten. The nationwide programme, initiated by the National Police, has connected 1,314 villages and benefits approximately 2 million people. The government praised the collaborative, community-driven initiative for improving access to education, healthcare, and economic activities in rural areas.

Shock as 'Ex-KPK Detainee' Swindles Grandmother and Flees with Fortuner

Police in South Tangerang have arrested two men who posed as a former Corruption Eradication Commission (KPK) detainee and a KPK employee to defraud an elderly woman. The suspects tricked the victim into handing over cash and locked her in an apartment bathroom before stealing her Toyota Fortuner. Authorities revealed the main perpetrator was actually a courier who delivered documents for the KPK, not a former detainee.

Dukcapil Accelerates Digitalisation of Social Protection in Banjarmasin

The Indonesian government is accelerating the digitalisation of population administration in Banjarmasin to strengthen the verification of data for social protection programmes. A 'pick-up' service is being deployed to ensure vulnerable groups obtain identity documents, while efforts are underway to boost the low activation rate of Digital Population Identity. Officials stress that accurate demographic data is the foundation for ensuring government aid is distributed precisely on target.

Three 'Sekolah Rakyat' in South Sulawesi to Begin Orientation as Buildings Near Completion

Three Integrated Sekolah Rakyat (SRT) in South Sulawesi—located in Wajo, Soppeng, and Sinjai—have delayed their student orientation programmes due to ongoing construction. The schools are now scheduled to commence the Masa Pengenalan Lingkungan Sekolah (MPLS) in August, despite some facilities not being fully completed. Challenges remain, including the provision of clean water and the finalisation of dormitory and classroom blocks.

Three People's Schools in South Sulawesi Delay Orientation as Buildings Remain Incomplete

The commencement of the School Orientation Period (MPLS) for the 2026-2027 academic year has been postponed at three Integrated People's Schools (SRT) in South Sulawesi due to ongoing construction. The affected schools in Wajo, Soppeng, and Sinjai are facing delays primarily because of unfinished buildings and a lack of clean water supply. Officials are targeting August for the start of in-person learning, with some schools resorting to online classes in the interim.

Gold Price Soars to US$4,400, Highest in Over Two Months

Gold prices surged to their highest level in more than two months, closing at US$4,407.06 per troy ounce on Wednesday, buoyed by US inflation data that met market expectations. The figures reinforced speculation that the Federal Reserve will hold interest rates steady in September, diminishing the opportunity cost of holding the non-yielding asset. Lingering geopolitical tensions between the US and Iran also provided additional support for the safe-haven metal.

When the Screen Becomes the Pulpit

The digital era has fundamentally shifted the structure of religious authority in Indonesia, moving it from traditional institutions like pesantren and lecture halls to social media platforms. While this democratisation of knowledge offers unprecedented access, it also presents challenges as visibility and algorithmic appeal often outweigh scholarly rigour. The article argues for a renewed emphasis on verification and ethical responsibility in the digital public sphere.

Not BTS, BAKTI to Focus on Existing Sites in Remote Indonesia During 2026

The Telecommunications and Information Accessibility Agency (BAKTI) will concentrate solely on operational expenditure for existing sites in 2026, with no plans for new base transceiver station (BTS) construction. Director Utama Fadhilah Mathar stated that new builds would not be completed in time, citing logistical and security challenges, particularly in Papua. Approximately 2,000 villages across Indonesia remain without 4G coverage, mostly in Papua.

Moment of Camaraderie: Cabinet Secretary Teddy and US Attaché Share Ranger Tab Bond at Palace

A moment of military camaraderie unfolded at the Merdeka Palace when Indonesian Cabinet Secretary Teddy Indra Wijaya and US Defence Attaché Colonel Jacky Ly recognised each other as fellow graduates of the elite US Army Ranger School. The interaction occurred during a meeting between President Prabowo Subianto and a visiting US delegation. Both officers are qualified to wear the prestigious Ranger tab, with Teddy having graduated from the program at Fort Benning in 2020.

Gus Alex Denies Receiving Money in Hajj Quota Corruption Case, Calls Charges 'Tyrannical'

Ishfah Abidal Aziz, known as Gus Alex, has denied allegations of personally enriching himself with over USD 5.2 million and Rp 330 million in the hajj quota corruption case. The former special staffer to the Religious Affairs Minister described the prosecutor's charges as 'tyrannical' and beyond the limits of a proper indictment. He maintains that the organisation of the 2023 and 2024 hajj pilgrimages did not cause any state losses.

Finance Minister Reviews Restrictions on Foreign Investment in Port Depots

Finance Minister Purbaya Yudhi Sadewa is considering limiting foreign investment in Indonesia's port container depot sector following complaints of market dominance by foreign shipping lines. The government is reviewing whether to add the business to the negative investment list, a move aimed at curbing capital flight and protecting local small and medium enterprises. The policy shift could reshape the logistics industry but risks creating regulatory uncertainty for existing foreign investors.

Mount Semeru erupts in early hours, accompanied by loud rumbling

Mount Semeru in East Java erupted multiple times early Thursday morning, with the highest ash column reaching 900 metres above the summit. Authorities have maintained the volcano's alert status at Level III and warned residents to avoid a 13-kilometre zone along the Besuk Kobokan river and a five-kilometre radius from the crater. The public has been advised to remain vigilant for potential pyroclastic flows, lava avalanches, and lahars.

Megawati Advised Prabowo to Vary the Free Nutritious Meal Menu

Former President Megawati Soekarnoputri revealed she suggested to President Prabowo Subianto that the Free Nutritious Meal programme menu should be more varied, including regional dishes like rendang. Speaking at a BPIP event, she also highlighted the importance of parental roles in child development and the issue of bullying.

Bogus Travel Agent in Labuan Bajo Swindles Rp 244 Million, 22 Chinese Tourists Stranded

A fraudulent travel agent operating in Labuan Bajo has been arrested for embezzling Rp 244.2 million intended for a premium tour package. The suspect, identified by the initials SO, admitted to using all the funds for personal expenses, leaving 22 Chinese tourists stranded upon arrival. The case has raised concerns about the regulation of tourism operators in the premium Komodo National Park destination.

US-Iran Tensions Flare Again as Peace Negotiations Stall

Diplomatic efforts to revive a temporary peace deal between the United States and Iran have reached an impasse, according to a senior Iranian source. The breakdown follows mutual accusations of violating the June agreement, which had called for a permanent cessation of military operations. Renewed attacks on vessels in the region are heightening fears of further escalation.

Purbaya Highlights Foreign Dominated Depo Business: Should Be for Indonesian MSMEs

Finance Minister Purbaya Yudhi Sadewa has questioned why the container depot business is open to foreign investment, arguing it should be reserved for Indonesian MSMEs. The statement came after the Indonesian Container Depot Association (ASDEKI) complained that foreign shipping lines are monopolising the sector and allegedly extracting up to 70% of revenues abroad. Purbaya pledged to investigate the matter and coordinate with the Minister of Transportation to review the relevant regulations.

Insulting President or VP Can Only Be Processed if Reported by Them, MK Rules

The Constitutional Court (MK) has ruled that the criminal offence of insulting the president or vice president is now an absolute complaint offence, meaning it can only be prosecuted based on a direct report from the head of state or deputy. The decision clarifies that no other party, including family members or supporters, can initiate legal proceedings on their behalf. This ruling partially grants a judicial review petition filed by 12 university students against articles in the new Criminal Code.

Pramono: Damaged JPO in Front of DPR Building Not Owned by Jakarta Provincial Government

Jakarta Governor Pramono Anung has clarified that the damaged pedestrian bridge (JPO) on Jalan Gatot Subroto, in front of the DPR building, is not the responsibility of the Jakarta Provincial Government. The bridge, which is now missing its access stairs, was originally constructed by the Ministry of Public Works and Housing. Pramono stated that the provincial government will maintain JPOs under its jurisdiction but will demolish those that are no longer needed.

PAN: PDIP Outside Government Not an Enemy, but a Democratic Balancing Force

The National Mandate Party (PAN) has expressed respect for the Indonesian Democratic Party of Struggle's (PDIP) decision to remain outside President Prabowo Subianto's cabinet, viewing it as a constitutional role rather than an opposition stance. PAN Deputy Chair Viva Yoga Mauladi stated that the presidential system does not formally recognise 'opposition' and that PDIP's position serves as a necessary democratic instrument for checks and balances. This follows Megawati Soekarnoputri's revelation that she informed President Prabowo of PDIP's intention to act as a balancing force outside the government.

Finance Minister Purbaya Revises Excise Stamp Design, Removes Hologram Requirement

Finance Minister Purbaya Yudhi Sadewa has issued a new regulation revising the physical specifications of excise stamps, notably removing the mandatory security hologram. The change, stipulated in Minister of Finance Regulation No. 57 of 2026, aims to optimise supervision and security for excisable goods. The regulation, which took effect on 10 August 2026, now only requires security paper and security printing as mandatory elements.

UAE Ambassador Offers Investment in Bulango Ulu Dam to Masdar

The UAE Ambassador to Indonesia, Abdulla Salem Aldhaheri, has proposed involving Emirati companies, particularly renewable energy firm Masdar, in the development of the Bulango Ulu Dam in Gorontalo. The ambassador expressed admiration for the project's progress and sees potential for collaboration to add economic value through clean energy and technology. The dam, set for completion in 2026, has a capacity of 93.5 million cubic metres and could generate up to 80 megawatts of power.

MUI Clarifies Islamic Ruling on Cross-Dressing During 17 August Competitions

The Indonesian Ulema Council (MUI) has declared that wearing clothing of the opposite gender during Independence Day celebrations is forbidden (haram) in Islam. The council cited religious texts and warned that such practices could promote LGBT campaigns, which contradict religious and social norms. MUI advised competition organisers to choose alternative activities that do not violate Islamic law.

US Inflation Cools as Expected, MSCI Rebalancing Shakes Indonesian Stocks

US consumer inflation data for July met market expectations, bolstering the case for the Federal Reserve to hold interest rates steady next month. The news lifted Wall Street, particularly AI-related technology stocks, while oil prices remained elevated due to the ongoing blockade of the Strait of Hormuz. Meanwhile, the Indonesian market is digesting the latest MSCI rebalancing results, which saw the removal of GoTo and Charoen Pokphand Indonesia from the Global Standard Index.

MSCI to Remove GOTO from Indonesia Index Amid Liquidity Concerns

MSCI will remove GoTo Gojek Tokopedia (GOTO) from its Indonesia Index at the end of August 2026, citing insufficient liquidity. This follows a similar delisting by FTSE Russell and marks another significant blow for the Indonesian tech firm, whose market capitalisation has plummeted from around US$29 billion to US$3.2 billion.

Safeguarding Mineral Sovereignty: Gold Governance Key to Unlocking Value

Indonesia's vast gold reserves, the world's fourth largest, are not yet matched by formal supply chains, with a significant gap between domestic demand and officially recorded supply. The government is seeking to formalise artisanal and small-scale gold mining through licensing schemes to curb illegal sales and integrate the sector. State-owned mining holding MIND ID stresses that improving governance from upstream to downstream is crucial for national sovereignty, economic resilience, and maximising value for the people.

Police Arrest Two in Quran Recitation Challenge for Alcohol Case at Jakarta Music Festival

Police have arrested two individuals following a controversial challenge at The Sounds Project music festival in Ancol, North Jakarta, where attendees were allegedly offered alcohol for reciting verses from the Quran. The incident, which went viral and sparked widespread condemnation, is being investigated as a potential act of religious blasphemy. Authorities are also examining the roles of the event organiser and the beverage brand involved.

After Gaza, Israel Now Openly Determined to Annex Southern Lebanon

Israeli Defence Minister Israel Katz has declared the military will maintain a long-term presence in a 'security zone' in southern Lebanon, Syria, and Gaza, drawing sharp condemnation from Lebanon and criticism from the United States. The comments, which included boasting about the systematic destruction of villages, have been labelled a violation of international law by Lebanese Prime Minister Nawaf Salam. The US State Department stated that permanent military presence contradicts the agreed framework and Israel's assurances of having no territorial ambitions in Lebanon.

Jakarta's air quality ranks sixth worst in the world on Thursday morning

Jakarta's air quality was ranked the sixth worst globally on Thursday morning, with an AQI of 156, categorised as unhealthy. The DKI Jakarta provincial government is implementing three main strategies to tackle air pollution, including expanding public transport and accelerating waste processing facilities. Governor Pramono Anung has also set a target to operate 10,000 electric buses by 2030 to reduce transport emissions.

SMA MHIS Team Wins 14 Gold Medals at ORBIT-C 2026 Competition in China

Students from Mutiara Harapan Islamic School (MHIS) in Indonesia achieved a remarkable feat by securing 14 gold medals and the Outstanding Award at the ORBIT-C 2026 competition in Zhengzhou, China. Their AI-powered 'Smart Stick' innovation, designed to assist visually impaired individuals, garnered significant international academic interest, including potential market opportunities in China. The team expressed pride in representing Indonesia and creating a solution with tangible social impact.

Are prizes for Independence Day competitions funded by community collections haram?

The Indonesian Ulema Council (MUI) has clarified that while Independence Day competitions are generally permissible in Islam, the source of prize money is critical. Using participant registration fees to fund prizes is considered haram as it constitutes qimar (gambling), because participants risk losing their money for a chance to win. The MUI advises that prizes should instead come from sponsors, committee funds, or voluntary donations from residents who are not competing.

Mobile Samsat Outlets Available at 14 Jadetabek Locations on Thursday

The Metro Jaya Regional Police have deployed mobile Samsat units across 14 locations in Jakarta, Depok, Tangerang, and Bekasi on Thursday to facilitate annual motor vehicle tax payments. The service aims to assist taxpayers by bringing administrative offices closer to residential and commercial areas. Motorists are reminded that the mobile outlets only process annual tax payments, while five-year registration renewals and plate changes require a visit to a permanent Samsat office.

Puan: Prabowo Invites 8 Special Guests to MPR Annual Session

House Speaker Puan Maharani revealed that President Prabowo Subianto has invited eight special guests to the annual session of the People's Consultative Assembly (MPR) on 14 August. These guests are representatives of beneficiaries of the government's strategic programmes. The session will feature a state address by the President and the delivery of the 2027 State Budget Bill.

Perlinsos Digital Reaches 2.9 Million Registered Families, Deputy Chair of KPTDP Reviews Trial in Sumedang

Minister Rini Widyantini visited Sumedang to review the Perlinsos Digital trial, a programme designed to improve the accuracy of social protection beneficiary data. The initiative has registered 2.9 million families, with Sumedang emerging as a pioneer region thanks to the active role of nearly 3,900 local agents. The digital portal aims to eliminate inclusion errors and provide a transparent, accessible channel for citizens to report their eligibility for social assistance.

House Commission V Demands Total Evaluation After Repeated Ferry Fires

A senior Indonesian legislator has called for a comprehensive evaluation of maritime transport safety following the latest ferry fire in West Lombok. The House of Representatives Commission V deputy chair stressed that ramp checks must be mandatory before any vessel is permitted to sail. The incident, which resulted in at least one confirmed fatality, has reignited concerns over lax enforcement of safety standards and passenger manifest discrepancies.

Jakarta's Odd-Even Plate Policy Suspended on 17 August 2026 for Independence Day

The Jakarta administration will suspend its odd-even licence plate policy on Monday, 17 August 2026, in observance of Indonesia's 81st Independence Day. The exemption is based on existing gubernatorial regulations that exclude national holidays from the traffic restriction scheme. Motorists are still urged to obey all other traffic rules and follow directions from authorities during the celebrations.

Constitutional Court Partially Grants Petition on Article Insulting the President

The Constitutional Court (MK) has partially granted a judicial review petition concerning articles on insulting the president and vice president in the new Criminal Code (KUHP). The court ruled that prosecution under these articles can only proceed based on a complaint by the president or vice president. The MK maintained that the provisions are constitutional and do not violate freedom of expression, as they are designed to protect the dignity of the presidential institution rather than personal interests.