Indonesian Political, Business & Finance News

Archive: 14 August 2026

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Central Java Governor: Development Must Lead to People's Welfare

Central Java Governor Ahmad Luthfi has stressed that all development programmes must ultimately improve public welfare, following President Prabowo Subianto's state address. He highlighted the province's declining poverty rate and economic growth above the national average as evidence of progress. Luthfi called for continued synergy between local and central government to ensure development benefits are genuinely felt by the community.

Dasco: Finalisation of online motorcycle taxi regulation scheduled for 18 August

The Indonesian House of Representatives is set to hold a final meeting with the government on 18 August to conclude the draft presidential regulation on online motorcycle taxis (ojol). The regulation aims to clarify rules for transporting people and goods, categorising drivers as micro, small, and medium enterprises. Officials have dismissed claims that the new status will automatically subject drivers to taxation, labelling such reports as hoaxes.

Prabowo Targets Start of Giant Sea Wall Construction on Java's North Coast During His Term

President Prabowo Subianto has announced his commitment to commencing the construction of the Giant Sea Wall along Java's North Coast, a project expected to take up to 20 years to complete. The sea wall, stretching from Banten to Gresik, aims to protect millions of residents and thousands of hectares of land from rising sea levels and land subsidence. The project will also incorporate technological innovations from the National Research and Innovation Agency (BRIN) and is designed to provide clean water infrastructure and stimulate new economic growth.

Dasco: Asset Forfeiture Bill Continues to Progress

The Indonesian House of Representatives (DPR) is continuing its deliberation of the Asset Forfeiture Bill, with Commission III currently gathering extensive public input. Deputy Speaker Sufmi Dasco Ahmad stated that the DPR will request a progress report from the commission during the recess period to evaluate the discussion process and technical aspects of the legislation.

Mataram Prosecutor's Office Investigates Alleged Corruption in West Lombok Regional Election Budget

The Mataram District Prosecutor's Office has launched an investigation into alleged corruption involving the management of the 2024 West Lombok Regional Election budget. The case, which stems from a public complaint, concerns a budget of IDR 24 billion managed by the West Lombok General Elections Commission. Investigators are currently calculating state financial losses.

PP FPTI Supports Kemenpora's Multiyear National Training Camp Initiative

The Indonesian Sport Climbing Federation (PP FPTI) has endorsed the Ministry of Youth and Sports' plan for a multiyear national training camp (pelatnas) to ensure athlete development continuity. The federation stressed that uninterrupted training is crucial for preparing for major events following the 2026 Asian Games, including the 2028 Los Angeles Olympic qualifiers. The scheme, approved by President Prabowo Subianto, aims to separate training budgets from competition dispatch costs for more focused funding.

137 State-Owned Hotels to Be Merged as Danantara Pursues Efficiency

Indonesia's sovereign wealth fund Danantara is consolidating 137 state-owned hotels as part of a broader drive to streamline state-owned enterprises (SOEs). CEO Rosan Roeslani said the initiative also includes merging asset management firms and hospitals to boost efficiency and productivity. The government aims to reduce the total number of SOEs from over 1,000 to around 200 by the end of the year through divestments, mergers, and liquidations.

UK Highlights Tourist Safety in Labuan Bajo

The British Embassy has raised serious concerns about the safety and legal protection of UK tourists visiting Labuan Bajo and Komodo National Park. Key issues discussed with local police included unlicensed travel agents, maritime safety standards, and communication barriers. Authorities in West Manggarai have pledged strict legal action against fraudulent operators to protect the destination's international reputation.

DPR Commission X Opens Door for Teacher and Lecturer Salary Increases in 2027 State Budget

The House of Representatives (DPR) Commission X has urged the government to include salary and allowance increases for teachers and lecturers in the 2027 State Budget (APBN) discussions. The commission is awaiting a proposed formula from the government and argues that improving educators' welfare is fundamental to enhancing national education quality. The push follows recent pay rises granted to other public servants, such as judges and military personnel.

NTB High Court Upholds 10-Year Prison Sentence for Rizka

The Nusa Tenggara Barat High Court has upheld a 10-year prison sentence for former police officer Rizka Sintiani for the murder of her husband, Brigadier Esco Faska Rely. The appellate ruling affirmed the lower court's decision, which found her guilty of domestic violence resulting in death. Prosecutors have not yet decided whether to appeal the case further to the Supreme Court.

Airlangga Unveils Transformation Strategy to Drive 2027 Economic Growth

Coordinating Minister for Economic Affairs Airlangga Hartarto has outlined a comprehensive economic transformation strategy aimed at achieving 6% growth by 2027. The plan focuses on high-value sectors like AI and semiconductors, revitalising agriculture and energy, and establishing a Strategic Mineral and Commodities Exchange to set independent reference prices. The government also aims to improve the investment climate through deregulation and maintain a prudent fiscal policy with a budget deficit target of 2.4% of GDP.

Observer says dual citizenship brings pros and cons for sports

Indonesian football observer Mohamad Kusnaeni has weighed in on the government's proposal for dual citizenship, highlighting potential benefits and drawbacks for national sports development. He noted that while the policy could attract diaspora athletic talent, it must be implemented cautiously due to existing single-citizenship laws and concerns over dual loyalty. The proposal, put forward by President Prabowo, aims to allow select talented individuals to retain foreign citizenship while contributing to Indonesia.

One Missing KMP Putri Yasmin Passenger Found Safe After Boarding Earlier Ferry

A passenger previously reported missing from the fire-stricken KMP Putri Yasmin ferry has been found safe at home. The woman had changed her travel plans and crossed on an earlier vessel, reducing the number of missing persons to four. Search efforts continue for the remaining missing passengers while the confirmed death toll remains at one.

1,200 MSMEs to Participate in Independence Day People's Party at Monas

Approximately 1,200 micro, small, and medium enterprises (MSMEs) will take part in the People's Party for the 81st Indonesian Independence Day at the National Monument (Monas) in Jakarta on 17 August 2026. The initiative aims to promote Nusantara culinary diversity and provide economic benefits to the curated and mentored businesses. The event, a collaboration between multiple ministries and the provincial government, expects to draw around 600,000 attendees.

Garut BPBD Provides Clean Water Aid to 5,687 Residents Affected by Drought

The Garut Regency Disaster Mitigation Agency (BPBD) has distributed 125,000 litres of clean water to 5,687 people across eight villages suffering from drought. The aid, delivered via 25 water tankers, targets six sub-districts affected since the dry season began in late May. A drought emergency status has been declared, with the peak expected in August 2026.

Government Focuses on Boosting Fishermen's Low Exchange Rate

The Indonesian government is prioritising efforts to raise the fishermen's exchange rate (NTN), which significantly lags behind the farmers' exchange rate (NTP). Coordinating Minister for Food Zulkifli Hasan announced plans to build up to 2,000 fishing villages and develop thematic aquaculture in 40,000 villages. The initiative also includes completing a salt industry project in East Nusa Tenggara and establishing village cooperatives to act as off-takers.

Pramono's Policies Create Conducive Climate in Jakarta, Investment Soars and Indonesia Benefits

Jakarta recorded the highest investment realisation in Indonesia for the first half of 2026, reaching Rp173.6 trillion. The achievement is attributed to the conducive business climate fostered by Governor Pramono's administration, which prioritises ease of investment and public service. The capital's integrated infrastructure and mature business ecosystem continue to attract both domestic and foreign investors.

CORE: Government Committed to Maintaining 2027 Draft Budget Deficit Below 3 Percent

CORE Indonesia has praised the government's commitment to keeping the 2027 draft state budget deficit below 3 percent of GDP. President Prabowo Subianto announced a deficit target of 2.40 percent, down from 2.68 percent in 2026, alongside a significant increase in state spending to Rp4,097.2 trillion. An economist noted the aggressive fiscal expansion contrasts with the cautious approach of many OECD nations.

Prabowo highlights Indonesia’s AAA-rated Panda Bonds

President Prabowo Subianto has underscored the significance of Indonesia’s Panda Bonds receiving an AAA/Stable rating from China Lianhe Rating, viewing it as a testament to the country’s solid economic fundamentals and effective policies. The rating accompanied the nation’s first issuance of yuan-denominated bonds in China’s domestic market, which raised 7 billion yuan. Prabowo noted that such international credibility is built through consistent implementation, not merely announcements.

House Speaker urges fair taxes, prudent debt in 2027 budget

House Speaker Puan Maharani has called for equitable tax collection and careful debt management in the 2027 state budget, warning against burdening future generations. She outlined four legislative priorities: fair revenue collection, targeted spending, prudent deficit and debt control, and regional transfers that strengthen local economies. The remarks were made ahead of President Prabowo Subianto's formal delivery of the 2027 draft budget.

Minister Clarifies Prabowo's Intent on Foreign Language Instruction from Primary School

Minister of Basic and Secondary Education Abdul Mu'ti has clarified President Prabowo Subianto's call for foreign language teaching from the first grade, stating it will focus on introductory exposure rather than formal subjects. English will become a compulsory subject from the third grade starting in 2027, while other languages like Mandarin and Korean will be introduced informally. The President had earlier stressed the importance of mastering multiple foreign languages for Indonesian children's future competitiveness.

MP Praises Prabowo's Speech, Says Government Building Foundations

An Indonesian MP has praised President Prabowo Subianto's state address, stating it shows the government is building foundations for long-term development. While acknowledging achievements, the legislator highlighted ongoing challenges such as public purchasing power and job creation. He also noted the importance of leadership consistency and suggested future speeches could benefit from a more personal touch.

Roundup - 2027 State Budget Draft to Spur Economy and Improve Basic Services

President Prabowo Subianto has presented the 2027 State Budget Draft (RAPBN) as a tool to drive economic transformation and accelerate improvements in basic services. The budget outlines Rp4,097 trillion in spending with a deficit of 2.40 percent of GDP, targeting 6 percent economic growth. Key priorities include renovating thousands of health centres, building a strategic mineral exchange, and providing incentives for the electric vehicle industry.

MPR Speaker: Unity is the nation's main strength

People's Consultative Assembly (MPR) Speaker Ahmad Muzani emphasised that national unity is Indonesia's primary strength in facing challenges, stating that political differences will not fracture national brotherhood. Speaking at the annual MPR session, he called for Pancasila values to be realised through law enforcement, anti-corruption efforts, and responsible democracy. Muzani also highlighted key development programmes, including the free nutritious meal initiative, as investments towards the 2045 Golden Generation.

Bromo Fire Extinguished, Crews Focus on Cooling and Sweeping Operations

The wildfire in the Bromo Tengger Semeru National Park (TNBTS) has been fully extinguished, with joint teams now concentrating on cooling and sweeping the affected areas to prevent reignition. Forestry Minister Raja Juli Antoni expressed gratitude to all agencies and volunteers involved in the firefighting effort. Authorities are conducting safety assessments of public facilities before deciding on reopening the park to visitors.

Market Welcomes Prabowo's Economic Direction in 2027 Draft Budget

Financial markets have responded positively to President Prabowo Subianto's presentation of the 2027 Draft State Budget (RAPBN), with the Jakarta Composite Index (IHSG) rising 1.59% and the rupiah strengthening. Analysts view the outlined economic vision, which includes new strategic initiatives and a focus on private sector-driven growth, as a clear signal of the government's development direction, though they await further details on fiscal sustainability and implementation.

Prabowo Plans to Investigate SOE Directors 30 Years Back, DPR Responds

President Prabowo Subianto has announced plans to investigate the management of state-owned enterprises (SOEs) dating back 30 years, citing poor governance and chronic financial losses. The House of Representatives (DPR) has responded cautiously, stating it will review the proposal, including a potential amnesty scheme for those who admit wrongdoing. Prabowo expressed shock at the number of unproductive SOEs and their subsidiaries, accusing some of fabricating profits.

Minister: Foreign languages in primary schools are for introductory purposes

Minister of Primary and Secondary Education Abdul Mu'ti clarified that foreign languages other than English will be taught at an introductory level in primary schools. English will become a compulsory subject from Year 3 starting in 2027, following President Prabowo Subianto's call for language instruction to begin from Year 1. The President believes early foreign language acquisition will boost the global competitiveness of Indonesian workers and strengthen the national economy.

Not Just a Producer, Prabowo Wants Indonesia to Help Set Global Commodity Prices

President Prabowo Subianto has declared that Indonesia must move beyond being a mere producer of key commodities and begin playing a role in determining their global prices. He announced plans to establish a strategic mineral and commodity exchange by 1 January 2027, alongside the creation of an 'Indonesia Reference Price'. The initiative aims to end the current situation where nations without the resources dictate the market value of Indonesian commodities like palm oil, nickel, and coal.

Musholla Warriors Return to Guard Cleanliness of Places of Worship Amidst 'Mountains of Rubbish'

The 'Pejuang Mushola' (Musholla Warriors) movement, in collaboration with Unilever Indonesia, has conducted a clean-up and hygiene education programme at Musholla Al-Hidayah in Bantar Gebang, Bekasi, an area surrounded by mountains of waste. The initiative aimed not only to clean the place of worship but also to educate the local community on Clean and Healthy Living Behaviour (PHBS) practices. Local leaders welcomed the effort, emphasising that maintaining the cleanliness of shared spaces and personal hygiene is a collective responsibility that should continue beyond the event.

Prabowo: No projects with large budgets but minimal benefits

President Prabowo Subianto has warned his administration against undertaking projects with large budgets that deliver minimal public benefit. He stressed that every rupiah spent must have a clear purpose and that officials must be held accountable. Prabowo also called for an end to corruption and mark-ups, urging greater efficiency in government spending.

Container Flow Operational Performance Trend Rises 8%, Here's the Cause

IPC Terminal Petikemas (IPC TPK) reported an 8% year-on-year increase in cumulative container throughput for the first seven months of 2026, reaching 2.17 million TEUs. The growth was driven by operational efficiency and service optimisation across its terminals, with July alone seeing a 13.7% surge. The company aims to maintain this positive momentum to support the national supply chain and logistics competitiveness.

Waqf and the Capital Market: A Synergy for Long-Term Social Investment

The article explores the growing integration of Islamic endowments (waqf) with the capital market, highlighting recent Indonesian legislation that permits Sharia banks to manage waqf funds. It argues that the long-term nature of waqf aligns well with capital market instruments like sukuk, and that concerns about investment losses are mitigated by the greater societal loss of leaving waqf assets unproductive.

2027 Education Budget Soars to Rp 820.9 Trillion, Up by Rp 100 Trillion

The Indonesian government has proposed a significant 13.9% increase in the education budget for 2027, raising it to Rp 820.9 trillion. The additional funds will expand scholarship programmes, support the free nutritious meal initiative, and finance the construction of new schools. This allocation reaffirms the state's constitutional commitment to dedicating at least 20% of the national budget to education.

Scientists Reveal Location of Interbreeding Between Humans and Other Species

A new study has pinpointed the Zagros Mountains, spanning the borders of Iran, Iraq, and Turkey, as the likely location where the ancestors of modern humans interbred with Neanderthals. Researchers used geographical data to show both species coexisted in this biodiverse region, which served as a climatic bridge during the Ice Age. The findings build on genetic evidence that 1 to 4 per cent of the modern human genome, outside of African populations, is inherited from Neanderthals.

Prabowo Reveals Reasons for Inviting Foreign Doctors to Practise in Indonesia

President Prabowo Subianto has announced plans to invite foreign doctors to practise in Indonesia on a limited basis to address a critical shortage of medical professionals. He cited a deficit of over 84,000 general practitioners and 55,000 specialists, arguing that the country cannot wait for domestic medical schools to produce enough graduates. The government is simultaneously expanding medical faculties and specialist programmes to meet long-term healthcare demands.

GP Al Washliyah Holds Prayer for Prabowo-Gibran on Indonesia's 81st Independence Day

The central board of the Al Washliyah Youth Movement held a spiritual gathering and mass prayer at the Sunda Kelapa Grand Mosque in Jakarta to mark Indonesia's 81st Independence Day. The event, attended by 500 participants including other youth organisations, specifically offered prayers for the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka. The chairman emphasised the crucial role of youth in safeguarding the nation's governance during this pivotal phase.

Finance Minister confident 2027 state budget targets can be achieved

Finance Minister Purbaya Yudhi Sadewa expressed confidence that the 2027 Draft State Budget (RAPBN) targets are achievable, citing strong economic performance in the first half of 2026. The budget sets a deficit of Rp671.2 trillion, or 2.40 percent of GDP, with state revenue projected at Rp3,426 trillion and spending at Rp4,097.2 trillion. The government is targeting 6 percent economic growth for 2027, supported by controlled macroeconomic stability and favourable policies.

Prabowo demands state budget deliver tangible public benefits

President Prabowo Subianto has instructed all government levels to ensure that every policy and budget allocation provides tangible benefits to the people. He emphasised discipline, efficiency, and accountability in development, warning against large-budget projects with minimal public impact. The President also announced plans to consolidate all government spending under a single agency to curb inefficiency and prevent corruption.

South Sulawesi Grouper Exports to US Reach Rp13.7 Billion in First Half of 2026

Indonesia's Ministry of Marine Affairs and Fisheries reported that grouper exports from South Sulawesi to the United States reached 53.8 tonnes, valued at Rp13.7 billion, in the first half of 2026. The ministry is optimistic that full-year exports will surpass the 2025 total of 97.4 tonnes worth Rp23.7 billion, driven by improved market acceptance and stringent quality assurance measures. The performance is attributed to regular official inspections and compliance with internationally recognised food safety certifications.

Baznas Expands Free Healthcare Access with 35 'Rumah Sehat' Clinics Nationwide

The National Alms Agency (Baznas) has established 35 Rumah Sehat Baznas (RSB) clinics across Indonesia to provide free healthcare, with the latest inaugurated in Jepara, Central Java. The agency is exploring a partnership with the national health insurer BPJS Kesehatan to extend services to its participants. Officials emphasised the importance of professional management and local community involvement, including students from Islamic boarding schools, to ensure the clinics' sustainability and broader impact.

Speaker Puan Maharani Warns Against Hoaxes Dominating Public Discourse

House Speaker Puan Maharani has cautioned that the public sphere must not be overtaken by hate politics, polarisation, and disinformation. Speaking at a parliamentary plenary session, she highlighted the dangers of hoaxes and manipulated content in the digital age. She urged for false information to be corrected swiftly and factually while still respecting democratic criticism.

IEEFA: It is time for Indonesia to play a greater role in the automotive industry

An energy analyst from IEEFA has urged Indonesia to become a champion in domestic automotive manufacturing, particularly in electric vehicles, to reduce oil imports. The analyst highlighted the need for strategic partnerships and expanded charging infrastructure beyond major cities. President Prabowo Subianto has also announced plans to accelerate electrification and provide incentives for one million locally produced electric motorcycles.

Rupiah Pegged at Rp17,500 per US Dollar in 2027 State Budget Draft, Observers Express Doubts

The Indonesian government has set the rupiah exchange rate assumption at Rp17,500 per US dollar in the 2027 Draft State Budget (RAPBN). However, economists have expressed scepticism, noting the rupiah has recently traded between Rp17,800 and Rp18,200, making the target appear overly ambitious. They argue that achieving this rate requires strong market confidence and concrete strategic plans from the economic team, rather than relying solely on a change in central bank leadership.

Indonesia Urged to Strengthen Strategic Autonomy in a Multipolar World

A national forum in Jakarta has recommended that Indonesia reinforce its strategic autonomy by adopting an 'issue-based national interests' approach to foreign policy. The group urged the government to avoid entanglement in US-China rivalry and to assert itself as a pivotal power by expanding partnerships through ASEAN, BRICS, and the G20. The recommendations also call for bolstering economic, food, energy, and digital sovereignty alongside diplomatic efforts for Palestinian statehood.

Prabowo Vows to Commence Giant Sea Wall Construction on Java's North Coast

President Prabowo Subianto has pledged to begin the construction of the Giant Sea Wall along the northern coast of Java during his term, a project expected to take up to 20 years to complete. The megaproject, spanning from Banten to Gresik in East Java, aims to protect millions of residents and tens of thousands of hectares of land from rising sea levels. Prabowo emphasised that the initiative must start immediately to avert disaster, citing the Netherlands' protective infrastructure as a model for national technological capability.

Prabowo Reveals 100 GW Solar Power Plant Development to Save State Rp73.9 T

President Prabowo Subianto has announced that the construction of 100 Gigawatts of solar power plants could save the state up to Rp73.9 trillion annually by reducing the basic cost of electricity production. The government is targeting 30 GW of solar capacity this year while phasing out 13 GW of diesel power plants. The initiative also aims to boost energy self-sufficiency at the village level, with an ideal target of one Megawatt of solar capacity per village.

NTB Prosecutor's Office Withdraws Verzet, Immediately Appeals Acquittal of 3 NTB DPRD Members

The West Nusa Tenggara High Prosecutor's Office has abandoned its planned verzet and directly filed a cassation appeal against the acquittal of three regional councillors in a gratification case. The prosecutors are relying on a Constitutional Court ruling that allows appeals against acquittals, despite the Mataram District Court rejecting their initial appeal. The case involves 'ghost money' linked to the governor's flagship Desa Berdaya programme.

Bamsoet Applauds Food Self-Sufficiency and Major SOE Reform in Prabowo Era

Golkar Party politician Bambang Soesatyo has praised the economic achievements of President Prabowo Subianto's administration, highlighting robust growth and investment figures. He specifically welcomed the success in achieving self-sufficiency in eight food commodities and the sweeping restructuring of state-owned enterprises. Bamsoet emphasised that these macroeconomic gains must translate into tangible benefits for the public, including job creation and increased purchasing power.

Government Spending in 2027 Set at Rp 3,362 Trillion, Purbaya: Not Large, but Expansive!

Finance Minister Purbaya Yudhi Sadewa stated that the 2027 government spending budget of Rp 3,362.2 trillion, while not exceptionally large, is designed to be expansive. The budget represents a 3.6 per cent increase from the 2026 outlook and will target programmes that drive national economic growth, improve public services, and reduce poverty.