Indonesian Political, Business & Finance News

Archive: 13 August 2026

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Mandiri Capital Invests in Premium Japanese-Style Cake Business DORÉ by LeTAO

PT Mandiri Capital Indonesia (MCI), the venture capital arm of state-owned Bank Mandiri, has made its first investment of the year by acquiring a minority stake in DORÉ by LeTAO, an Indonesian premium cake company. The funds will be used to expand branch networks, upgrade production facilities, and support measured business growth, with a primary focus on Jakarta due to its high purchasing power. MCI's investment, which leverages transaction data from the Bank Mandiri ecosystem, aims to scale the decade-old business while maintaining its commitment to Japanese-style craftsmanship and quality.

Video: Industry Requires Government Stimulus to Strengthen Economic Resilience

BNI's Chief Economist notes that government spending, while normalising, remains crucial for sustaining purchasing power and growth momentum. He argues that stimulus must be expanded to the production side to mitigate rising costs and protect employment. Structural reforms targeting exports, foreign investment, and logistics costs are also deemed essential for continued economic expansion above 5%.

Ministries of Religious Affairs and Health Expand TB Screening Access for Islamic Boarding School Students

The Indonesian government is expanding free health check-ups and tuberculosis screening to over 7 million students in Islamic boarding schools and madrasahs. The programme, a collaboration between the Ministry of Religious Affairs and the Ministry of Health, targets early detection in communal living environments. Health Minister Budi Gunadi Sadikin emphasised that rapid screening and free treatment are key to increasing national life expectancy.

Six Shop-House Roofs in Bogor Suddenly Collapse, Crushing Two Motorcycles

The canopies of six shop-houses along a toll access road in Gunung Putri, Bogor Regency, collapsed without warning on Thursday, damaging two parked motorcycles. No casualties were reported, but material losses are estimated at Rp 100 million. Authorities suspect substandard construction may be the cause, pending further investigation.

PKB Forms Prabowonomics Task Force to Support President's Economic Agenda

The National Awakening Party (PKB) has established the 'Prabowonomics Panji Bangsa' task force to support President Prabowo Subianto's economic policies. The task force aims to ensure the president's strategic programmes are implemented transparently and accountably, directly benefiting the public. It will be supported by party cadres at provincial and district levels across Indonesia.

10 Latest Twibbon Designs for the 81st Indonesian Independence Day, Ready to Share on Social Media

As Indonesia prepares to celebrate its 81st Independence Day on 17 August 2026, the public can join the festivities by using specially designed photo frames, known as twibbons, on social media. This article provides a curated list of ten twibbon links and a step-by-step guide for applying them to personal photos. The official theme for this year's commemoration, 'A Sovereign, Just, and Prosperous Indonesia', was launched by the government alongside the official logo in June 2026.

Putin's Visit to Disputed Island Sparks Fierce Protest from Japan

Russian President Vladimir Putin has made his first visit to the disputed Etorofu Island, drawing a strong protest from Tokyo. Japan maintains the island, part of a chain it calls the Northern Territories, was illegally seized by the Soviet Union after World War II. The visit is seen as a signal that Moscow will not make territorial concessions, further dimming prospects for a peace treaty between the two nations.

Minister Nusron: Service transformation requires shared commitment

Minister of Agrarian Affairs and Spatial Planning Nusron Wahid has stressed that transforming land services requires commitment from all parties, including the National Land Agency, land deed officials, and regional heads. The initiative aims to provide certainty and ease for the public through scheduled land measurement and streamlined land title transfers. The ministry targets completing scheduled measurements within 12 days and title transfers within 10 days, with specific timeframes set for each stage of the process.

Pramono supports BNN's drug network raid in Kampung Bahari

Jakarta Governor Pramono Anung Wibowo has expressed full support for the National Narcotics Agency's (BNN) operation against a drug network in Kampung Bahari, North Jakarta. The raid led to the arrest of a suspected drug lord known as 'Bos Gendut', who was already a fugitive. Authorities seized dozens of kilogrammes of crystal methamphetamine, firearms, and gold bars, and are now investigating money laundering charges.

Economist Reveals Indonesia's Export 'Treasure' Beyond Nickel, CPO, and Coal

A leading economist has identified coffee, nutmeg, cocoa, and coconut as potential new pillars for Indonesia's export growth, urging the government to focus on these non-traditional commodities. The call comes as the country seeks to reverse a recent trade deficit, with falling global oil prices offering a window to ease import pressures and boost economic momentum.

BNPT assures Indonesian children will grow up in a safe digital environment

Indonesia's National Counterterrorism Agency (BNPT) has pledged to protect children from radicalisation in the digital sphere, warning that extremist groups now exploit platform algorithms to target young users. The agency is integrating child protection into its national action plan and collaborating with multiple ministries to create a safer online ecosystem. Families are urged to act as the first line of defence through digital literacy and close supervision of children's online activities.

Customs Foils Two Gold Smuggling Attempts Worth IDR 63 Billion in Under 24 Hours

Customs officers at Soekarno-Hatta Airport thwarted two separate attempts to smuggle nearly 24 kilograms of gold out of Indonesia within a single day. The seized gold, valued at approximately IDR 63 billion, was concealed using methods ranging from body insertion to exploitation of airport staff access. The Finance Minister stressed the need for enhanced technological and inter-agency collaboration to combat increasingly sophisticated smuggling tactics.

DPR Asserts All Political Parties Support the Labour Bill

The House of Representatives (DPR) has dismissed claims by a labour union leader that some political parties lack commitment to workers' rights. DPR Deputy Speaker Cucun Ahmad Syamsurijal insisted all factions are united in backing the draft Labour Bill, which follows a Constitutional Court ruling.

Seribu Islands Police Plant 2,000 Mangroves to Mark Independence Day

The Seribu Islands Police have planted 2,000 mangrove seedlings on Harapan Island as part of Indonesia's 81st Independence Day commemorations. The initiative aims to bolster coastal ecosystem sustainability and raise public awareness about environmental conservation. The force also conducted a social service event to strengthen community ties.

Police Detain Two in Case of Quran Memorisation Challenge Swapped for Alcohol

Indonesian police have detained two individuals in connection with a controversial challenge at a music festival in North Jakarta, where attendees were allegedly offered alcohol in exchange for reciting Quranic verses. The suspects, a man and a woman, are being held on suspicion of blasphemy as the case has been transferred to the Jakarta Metropolitan Police. The event organisers, the MC, and the alcohol brand have all issued public apologies, distancing themselves from the spontaneous act and expressing regret for the religious insensitivity.

Indonesian Exports to the US Quietly Propel Economic Growth in Q2-2026

Indonesia's exports of textiles, footwear, wood products, and furniture to the United States have quietly bolstered the nation's economic growth in the second quarter of 2026. A senior economist at Bank Negara Indonesia attributed the rise to increased US demand and potential front-loading by companies ahead of new tariffs. The export sector contributed 23.13% to GDP during the quarter, with a growth rate of 4.13%.

BI: Sharia Banking Financing Hits Rp720tn in June 2026

Bank Indonesia reported that sharia banking financing reached Rp720 trillion in June 2026, marking an 11.43 percent year-on-year increase, while third-party funds grew to Rp816 trillion. The central bank emphasised the need to strengthen connectivity between the halal industry and Islamic finance to support productive investment and real-sector expansion. Industry leaders highlighted the importance of tailored long-term financing and ecosystem-centric strategies to deepen the role of sharia banking in national economic growth.

Governor Pramono Inaugurates 44 Members of Jakarta's 2026 Paskibraka

Jakarta Governor Pramono Anung has inaugurated 44 members of the province's 2026 Heritage Flag Hoisting Troop (Paskibraka), urging them to embody discipline, integrity, and a spirit of national defence. The young participants were selected after months of rigorous training and selection processes. The Governor emphasised that the inauguration marks a significant responsibility for these future leaders to uphold national values in their daily lives.

Minister Meutya: AI Centres at Universities Strengthen National AI Ecosystem

Minister of Communication and Digital Meutya Hafid has stated that establishing AI centres at universities is crucial for building a sovereign and independent national artificial intelligence ecosystem. She emphasised the need for Indonesia to develop its own AI capabilities through talent development, research, and innovation, rather than merely adopting foreign technology. The launch of the NVAITC Joint Center at UGM, involving Indosat and NVIDIA, is seen as a key step in accelerating AI research and talent cultivation to deliver economic and social benefits.

Three Indonesian Crew Members Attacked by Houthi Missile in Bab Al-Mandeb Strait: Two Survive, One Missing

The Indonesian Foreign Ministry has confirmed that two Indonesian crew members survived a Houthi attack on the MV Tihamah in the Bab Al-Mandeb Strait, while a third is missing and presumed dead. The ministry is coordinating with Yemeni authorities on search efforts and preparing to repatriate the survivors once their conditions allow.

PKB Forms Prabowonomics Task Force to Oversee President's Economic Policies

The National Awakening Party (PKB) has established a 'Prabowonomics' task force through its wing organisation, Panji Bangsa, to monitor and support President Prabowo Subianto's economic programmes. The task force aims to ensure policies such as the Danantara export-import oversight body and the free nutritious meals scheme are implemented transparently and deliver direct benefits to the public. It will also focus on explaining the substance of these policies to the community and preventing potential misuse of authority.

Climate Crisis Threatens Clean Water, Regulations Need Strengthening

The impact of climate change is making the strengthening of drinking water and sanitation governance increasingly urgent, as infrastructure access does not guarantee safe services. A leading environmental engineering expert has called for regulatory reform to ensure policies focus on service quality and climate resilience, not just coverage. The discussion comes as Indonesia's parliament deliberates a new bill on water and sanitation security.

Illegal Migrants Dig Tunnels, Lithuania on High Alert at Border

Lithuanian border guards have discovered 12 tunnels used by migrants to cross illegally from Belarus since the start of the year, with some reaching 25 metres in length. Officials suspect logistical support from Belarusian authorities, viewing the tunnels as a hybrid warfare tactic to maintain border tension and destabilise Lithuania. The development marks a new phase in the ongoing instrumentalisation of migration along the EU's eastern flank.

Rupiah flat as post-MSCI euphoria fades

The Indonesian rupiah closed flat against the US dollar on Thursday as the initial market euphoria following the MSCI index review dissipated. Investor attention has shifted towards the government's nomination of new senior and deputy governors for Bank Indonesia, alongside global geopolitical concerns.

Mekaar Loan Interest Drops to 8%, PNM Targets Women

State-owned PT Permodalan Nasional Madani (PNM) has slashed the interest rate on its Mekaar microfinance programme to 8 per cent, down from an average of 20 per cent. The move follows a direct order from the President to ease the burden on pre-prosperous women entrepreneurs. The new rate is scheduled to launch in early September and aims to strengthen the ultra-micro economy at the grassroots level.

Thousands of New FISIP UB Students Voice Critical Views on National Issues

Thousands of new students at the University of Brawijaya's Faculty of Social and Political Sciences have used their orientation programme to express critical perspectives on pressing national issues, including poverty and freedom. The dean described the messages as a sincere form of concern and a 'love letter' from the younger generation to the government, urging continuous improvement. The faculty also emphasised a strictly supervised schedule to ensure student welfare during the event.

Bidadari Island manages waste shipments from Jakarta

Bidadari Island in the Thousand Islands is tackling up to 900 tonnes of waste arriving from mainland Jakarta over three months. The local government has partnered with a waste management community to establish independent processing facilities. The initiative aims to serve as a model for a zero-waste concept across the regency.

Koffiku: Pertamina's Exhibition Support Boosts MSME Enthusiasm

Surabaya-based coffee MSME Koffiku has praised Pertamina's support in facilitating participation in exhibitions, which has significantly boosted their business development and market expansion efforts. The state-owned energy company's financial backing, including covering exhibition, accommodation, and transport costs, has allowed the business to focus on sales and networking. Koffiku reported strong initial sales and highlighted the opportunity to connect with potential international buyers at the Pertamina SMEXPO Merah Putih 2026.

Brigadier Renita, the Policewoman Who Brought Honour to the Indonesian National Police on the International Stage

Brigadier Renita Rismayanti, a recipient of the 2026 Hoegeng Awards, has shared the story behind her digital innovation while serving as a UN peacekeeper in the Central African Republic. Her work modernised local police criminal data management, earning her the UN's Women Police Officer of the Year award. She believes meaningful contribution can be made from any position by performing one's duties to the best of one's ability.

KMP Putri Yasmin Fire: Padangbai-Lembar Ferry Services Remain Normal

Ferry services between Padangbai, Bali, and Lembar, Lombok, continue to operate normally a day after the KMP Putri Yasmin caught fire in the Lombok Strait. The port authority reports no delays and passenger numbers remain steady at around 1,200 to 1,300 daily. Search and rescue efforts are ongoing for passengers still unaccounted for, while authorities plan to evaluate discrepancies in the ship's manifest.

504 Free Nutritious Meal Kitchens Permanently Closed, 3,000 More Await Fate

Indonesia's National Nutrition Agency has permanently shut down 504 kitchens under the Free Nutritious Meal programme for failing to meet hygiene and sanitation standards. A further 3,000 kitchens are currently undergoing inspection, with the government warning that no compromises will be made on food safety. The agency is enforcing a zero-tolerance policy on food poisoning and has introduced mandatory pre-consumption checks to safeguard children's health.

China Consumes 4.4 Billion Tonnes of Coal Annually, Indonesia Lags in Gasification

China's annual coal consumption has reached 4.4 billion tonnes, with up to 35% used for gasification and chemical industries, according to Indonesia's Deputy Minister for Investment. In stark contrast, Indonesia has yet to operate a single industrial-scale coal gasification project despite its vast reserves. The government is now pushing strategic projects to convert coal into dimethyl ether (DME) and synthetic methanol to reduce energy import dependency and control domestic costs.

Garuda Merah Putih Pioneer Bridge Inaugurated in Majalengka

A new 26-metre bridge connecting two villages in Talaga, Majalengka, West Java, has been officially opened, significantly reducing travel times for local residents. The project was completed within one month following a rapid response from the local military command and district government, despite regional budget constraints. Officials highlighted the bridge's vital role in improving daily mobility, school access, and the local economy, particularly for those travelling to Pasar Talaga.

Prabowo pushes national electric motorcycle production to 2 million units

President Prabowo Subianto has urged the domestic electric motorcycle industry to scale up production to 2 million units, following the milestone of 20,000 units produced by the Indika group. The government plans to support this target through more affordable financing schemes, including lower interest rates and the possible removal of down payments. The push is part of a broader strategy to accelerate the transition to electric vehicles and reduce operational costs for consumers.

IHSG closes down at 6,301 as market responds to MSCI review

The Indonesia Stock Exchange composite index fell 1.13 per cent to 6,301.77 on Thursday, driven by the removal of several Indonesian stocks from MSCI's global indices during its August 2026 review. The decline was compounded by profit-taking ahead of President Prabowo's state address on the 2027 state budget draft. Broader Asian markets also weakened after a previous rally, with China's central bank signalling only measured policy support.

Haris Azhar Outlines Three Measures Against Repression of Journalists

Human rights activist Haris Azhar has detailed three levels of advocacy in response to repression against journalists, ranging from prevention to demanding accountability for material losses and fundamental rights violations. Speaking at a thematic journalism training event, he stressed that responses should not obscure the issues being reported and called for the protection of journalistic continuity. He also noted existing cooperation between the Press Council and the National Police for handling criminal cases involving journalists.

Free Nutritious Meal System Overhauled, Beneficiaries Re-registered Using Biometrics

The Indonesian government is overhauling the Free Nutritious Meal (MBG) programme by integrating biometric data from the civil registry to eliminate duplicate records. The National Nutrition Agency (BGN) has partnered with the Ministry of Home Affairs to verify individual beneficiaries using facial recognition, fingerprints, and iris scans. This move follows the discovery of six million duplicate entries and aims to ensure aid is precisely targeted, with future plans to link the data to health monitoring systems.

Case of 1.3 Tonnes of Ketamine Transferred to Bareskrim, 8 Suspects Flown to Jakarta

The investigation into the smuggling of 1.3 tonnes of ketamine intercepted off Bintan Island has been formally transferred to the Indonesian National Police's Criminal Investigation Agency (Bareskrim). Eight foreign crew members from the MV King Sun have been flown to Jakarta to face charges under the Health Law rather than narcotics legislation, as ketamine is not yet classified as a narcotic in Indonesia. The joint operation involved the Navy, BNN, State Intelligence Agency, and Customs, but legal authority for pharmaceutical preparations rests solely with the police.

Bank Jago Leverages AI to Develop Relevant Digital Services

PT Bank Jago Tbk is utilising artificial intelligence to better understand customer behaviour and deliver more relevant digital banking services. The strategy was outlined by a director at the Digital Banking Forum 2026, where the bank highlighted its superapp and ecosystem partnership with GoPay. The initiative aims to create seamless transactions and enhance the overall customer experience.

Downstreaming Contributes 30% to Indonesia's Investment Realisation

Indonesia's downstreaming projects contributed approximately 30% to the nation's total investment realisation in the first half of 2026. The government is committed to banning raw mineral exports to ensure domestic processing adds greater economic value. Nickel processing led the mineral sector, which dominated the downstreaming investment figures.

DPD Chairman Says Preparations for 2026 Annual Session Nearly Complete

DPD RI Chairman Sultan Baktiar Najamudin has confirmed that preparations for the 2026 MPR Annual Session and the Joint Session of the DPR and DPD are almost finalised, with rehearsals completed. The DPD, acting as this year's host, has adopted the theme 'Strong Regions, Sovereign Indonesia' to underscore national unity. Najamudin also urged all members to maintain decorum during the proceedings, following a call for greater solemnity from the DPR Speaker.

Vale Targets 2029 Start for Nickel Mining at Tanamalia Block in South Sulawesi

PT Vale Indonesia is aiming to commence nickel mining operations at the Tanamalia Block in East Luwu, South Sulawesi, by 2029. The project is currently undergoing a Front End Loading 2 study to detail resource reserves and development plans. The company emphasises that development will be based on comprehensive ecological and disaster studies to map risks.

Government and Shopee Launch Strategy to Boost Local MSMEs for Global Export

The Indonesian Ministry of Trade and Shopee Indonesia have launched a new programme to accelerate the global reach of local micro, small, and medium enterprises (MSMEs). The initiative focuses on leveraging digital platforms to strengthen domestic market presence while providing training, promotional support, and export facilities. Trade Minister Budi Santoso highlighted that non-oil and gas export transactions through government programmes reached US$251 million in the first half of 2026.

When Science Immortalises a Name: A Lesson from Rote Island, NTT

The naming of a bird species endemic to Rote Island after former Indonesian First Lady Iriana Joko Widodo highlights the nation's rich biodiversity and the meticulous work of scientists. The discovery of Myzomela irianawidodoae, officially recognised in 2017, underscores the importance of long-term research and international collaboration in documenting new species. The article reflects on how scientific collections serve as permanent records of Indonesia's natural heritage.

Government and Businesses Discuss Strengthening Sustainable Toll Road Investment

The Indonesian government and business stakeholders are exploring ways to reduce the state budget's burden in toll road development by attracting more private investment. A focus group discussion highlighted the need for regulatory certainty, fair risk-sharing, and sustainable financing models to maintain investor confidence. The forum underscored the vital economic role of toll roads, with the network exceeding 3,115 km and accumulated investment projected to reach nearly IDR 1,000 trillion.

West Sulawesi Pursues Quality Inbred Rice Seed Production Amid Extreme Drought

West Sulawesi's agricultural agency is pressing ahead with the production of high-quality inbred rice seeds despite extreme dry weather conditions. The initiative focuses on the new, fast-maturing BK Situbondo 01 Agritan variety, which can be harvested in as little as 77 days and yields up to 9 tonnes per hectare. The programme aims to bolster regional food security and provide local farmers with resilient, high-yield seed alternatives.

Electric Motorcycle Penetration at Just 1 Per Cent, Rosan Sees Explosive Growth Potential for Molinas

Investment Minister Rosan Roeslani has highlighted the vast untapped potential of Indonesia's electric motorcycle market, with current penetration at only 1 per cent of annual sales. The government, through Danantara, is preparing financing support including lower interest rates and reduced down payments to accelerate adoption. Around ten national companies meeting local content requirements are set to participate in developing the national electric motorcycle programme.

Man Dies of Suspected Heart Attack While Assisting Forest Fire Fighting in Kubu Raya

A 65-year-old plantation worker in West Kalimantan died, reportedly from a heart attack, while providing logistical support to firefighters tackling a land and forest fire. The incident occurred in Rasau Jaya District, Kubu Raya Regency, as a joint task force battled a blaze that had been burning for three days near Supadio International Airport.

Buntet Pesantren Elder KH Hasanuddin Kriyani Passes Away, Burial Accompanied by Tahlil Chants

KH Hasanuddin Kriyani, a revered elder of Pondok Buntet Pesantren in Cirebon, has passed away in Jakarta. His death comes just a month after he was appointed to the senior role, succeeding KH Adib Rofiuddin Izza. The funeral procession at the pesantren was attended by many mourners offering prayers and tahlil recitations.

The Apache Crisis and the Dilemma of Dependence on the US, as Israel's Weaponry Begins to Erode

Israel's air force is urgently seeking to acquire new Apache helicopters, reversing a pre-October 2023 plan to reduce its fleet. The shift highlights a deeper crisis driven by an ageing fleet, high operational intensity, and critical dependence on the United States for the platform's production and supply chain. Military estimates suggest Israel may need up to 50 new helicopters to meet its requirements.