Indonesian Political, Business & Finance News

Archive: 14 August 2026

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Puan says Prabowo's speech mentioning PDIP was an invitation for unity

House Speaker Puan Maharani interpreted President Prabowo Subianto's reference to PDIP during his 2027 budget speech as a call for solidarity. She affirmed that despite political differences, building the nation requires joint effort. Puan also noted that Prabowo's characterisation of his policies as 'Marhaenism' aligns with PDIP's commitment to pro-people governance.

Malaysia's Economy Surges 6% in Q2 2026, Beating Expectations

Malaysia's economy expanded by 6% year-on-year in the second quarter of 2026, surpassing both official estimates and market forecasts. The robust performance was driven by strong exports and resilient household consumption, which helped cushion the impact of Middle East tensions. The central bank governor indicated that growth for the full year could reach the upper end of the 4% to 5% projection.

Prabowo to Accelerate Optimisation of State-Owned Enterprise Assets via Private Sector

President Prabowo Subianto has announced plans to accelerate the optimisation of underperforming state-owned enterprise (SOE) assets through partnerships with the private sector. The government aims to facilitate open, competitive, and accountable cooperation for idle land, buildings, and networks while retaining strategic state ownership. This approach, inspired by models such as India's National Monetisation Pipeline, seeks to unlock capital for new infrastructure development.

SMA Garuda uses IB curriculum to target world's universities: Prabowo

President Prabowo Subianto announced that the newly established SMA Unggul Garuda schools are using the International Baccalaureate curriculum to prepare talented Indonesian students for admission to top global universities. The government has built four dedicated schools and expanded a transformation programme to 42 schools across 15 provinces, while also increasing the number of Garuda Scholarship recipients studying abroad to 515 in 2026. Prabowo emphasised that educational fairness means providing support according to individual needs, as part of a broader strategy to boost human capital and see more Indonesian universities enter the world's top 500.

House Commission X Highlights Teacher Shortage Amid Prabowo's Push for Foreign Languages in Primary Schools

House Commission X Chair Hetifah Sjaifudian has welcomed President Prabowo Subianto's plan to introduce foreign language instruction from the first year of primary school, but stressed the need for careful planning and student choice. She highlighted the critical issue of teacher availability, noting that even regional language teachers are scarce. The president's initiative aims to equip young Indonesians with multilingual skills to improve future job prospects.

Prabowo Proposes Limited Dual Citizenship for Diaspora Talent

President Prabowo Subianto has proposed a limited dual citizenship scheme to attract highly skilled Indonesian diaspora members. The policy targets individuals in strategic fields such as science, medicine, engineering, and artificial intelligence, aiming to prevent brain drain and strengthen national development. The government plans to revise the Citizenship Law, implementing strict integrity checks and a selective mechanism for applicants.

UHN Tegal Holds Public Lecture on the Importance of Primary Healthcare in Indonesia

Universitas Harkat Negeri (UHN) Tegal hosted a public lecture emphasising the need to place people at the centre of Indonesia's primary healthcare system. Speakers, including a Harvard associate professor, highlighted the importance of early prevention and ensuring technological advances in medicine are accessible to all citizens. The university's vice-rector stressed that building a health system must address the real needs of the community, not just provide treatment after illness occurs.

Prabowo targets mineral exchange to be operational by 1 January 2027

President Prabowo Subianto has set a target for Indonesia's Mineral and Strategic Commodities Exchange to commence operations on 1 January 2027. The initiative aims to shift pricing power away from foreign exchanges and establish an Indonesia Reference Price for key exports. The government plans to operate the exchange under OJK supervision, bringing together producers, buyers, and investors in a transparent system.

Bogor DPRD Urges Chamber of Commerce to Help Boost Regional Economy

The Bogor City DPRD has called on the newly appointed leadership of the Indonesian Chamber of Commerce and Industry (Kadin) to play an active role in driving local economic growth. Legislators stressed the need for collaboration and business diversification to overcome fiscal constraints caused by central government budget efficiency policies. The council also urged Kadin to focus on programmes that directly address community needs and help increase the region's own-source revenue.

NTB High Prosecutor's Office Appeals Acquittal of Three Legislators

The High Prosecutor's Office of West Nusa Tenggara has filed an appeal with the Supreme Court against the acquittal of three provincial parliamentarians in a gratuity case. The Mataram Corruption Court had previously cleared the three members of the NTB Regional House of Representatives of all charges. The case involves allegations of payments made to influence fellow legislators regarding a regional government programme.

Prabowo Pushes for Limited Dual Citizenship: Here Are the Requirements and Eligible Groups

President Prabowo Subianto is advocating for a selective dual citizenship policy aimed at attracting highly skilled Indonesian diaspora members whose expertise is deemed vital for national interests. The government plans to propose legislative changes to allow this limited scheme, targeting professionals such as scientists, engineers, and entrepreneurs who have taken foreign citizenship due to career demands. The policy is strictly intended for individuals with exceptional talent who can make significant contributions, rather than being a general provision for all citizens abroad.

From Waste to Wealth: GO-SARI Drives Circular Economy for Bantul Residents

The GO-SARI waste management facility in Bantul, Yogyakarta, is transforming household rubbish into a source of income, processing up to 3.5 tonnes daily into compost, animal feed, and recycled products. Supported by Pertamina since 2022, the initiative now employs 27 locals and generates around Rp98 million per month, while a new solar power system cuts operational electricity costs by 60 per cent.

Prabowo announces incentives for domestic production of 1 million electric motorcycles

President Prabowo Subianto has unveiled a significant incentive scheme aimed at boosting the domestic manufacture of one million electric motorcycles by Indonesian companies. The policy is designed to accelerate the electrification of mobility, reduce fuel imports, and expand the national electric vehicle industry and its supply chain. The government estimates that widespread adoption could slash consumer transport costs by up to 70 percent compared to conventional motorcycles.

President Prabowo Highlights Strong Fiscal Performance, Outlines 2027 Budget Priorities

President Prabowo Subianto reported robust fiscal performance for the first half of 2026, with state revenue growing 21.3% and spending up 18.2%, while maintaining a low deficit of 0.91% of GDP. He emphasised that the 2027 State Budget (RAPBN) will remain expansionary yet prudent, targeting 6% economic growth. The government plans to increase state spending to Rp4,097 trillion, supported by revenue targets of Rp3,426 trillion and a deficit of 2.40% of GDP.

Indonesia's Health Economics Architecture Needs Overhaul, Says Lawmaker

A member of Indonesia's House of Representatives has called for a fundamental review of the nation's health economics architecture, arguing that increased spending has not automatically translated into better public health outcomes. Sihar P.H. Sitorus stressed the need to shift focus from merely covering costs to ensuring every rupiah spent delivers measurable health benefits, particularly in light of ongoing financial pressures on the national health insurance scheme (JKN).

Lake Toba Tourism Needs Strengthening with Cultural Attractions: Lamhot

A senior Indonesian lawmaker has urged that Lake Toba's tourism development be bolstered by large-scale cultural attractions, arguing that natural beauty alone is insufficient. The 'Tona Sian Huta' event, featuring a Batak opera and local creative economy exhibitions, is seen as a model for enriching visitor experiences. Organisers hope the initiative becomes an annual fixture to strengthen the region's cultural ecosystem and diaspora ties.

Supreme Court Rejects Prosecutors' Appeal, Acquittal of Tian Bahtiar and Co-Defendants in Obstruction of Justice Case Stands

The Indonesian Supreme Court has rejected a cassation appeal filed by prosecutors, upholding the acquittal of three defendants accused of obstructing corruption investigations. The panel of judges found no criminal intent in the actions of former JakTV executive Tian Bahtiar, social media manager M. Adhiya Muzakki, and advocate Junaedi Saibih. The ruling reinforces the lower court's view that the defendants' journalistic and legal advocacy activities did not constitute obstruction of justice in cases involving tin commodities, sugar imports, and crude palm oil exports.

OJK Strengthens Sharia Insurance Ecosystem, Industry Prepares New Structure

Indonesia's sharia insurance sector is undergoing structural consolidation as regulators push for spin-offs of Islamic business units. FWD Insurance has secured a licence for its new sharia entity, PT FWD Insurance Indonesia Syariah, marking a key milestone in the separation process. The move reflects broader industry efforts to align with OJK regulations and capitalise on the growing demand for sharia-compliant financial products.

Independence-themed garden adorns North Jakarta Mayor's Office

The North Jakarta administration has decorated the lobby of the Mayor's Office with a garden themed around independence and the area's coastal identity to celebrate Indonesia's 81st Independence Day. The display features a variety of plants chosen to represent the spirit of freedom, the region's maritime character, and the richness of the archipelago's tropical rainforests.

Expert says Prabowo's policy transformation beginning to show results

Public policy expert Anzori Tawakal has assessed that President Prabowo Subianto's administration is on the right track, with transformative policies in food, energy, and education already showing results after 21 months. He noted achievements such as food self-sufficiency being reached within the first year, but stressed that comprehensive transformation requires time and continuous evaluation. The assessment follows a state address in which Prabowo outlined 121 transformative policies implemented since taking office.

Govt covers health insurance for 96.8 mln people: Prabowo

President Prabowo Subianto announced that the government has fully covered national health insurance premiums for 96.8 million underprivileged Indonesians, highlighting the JKN programme as one of the world's largest health insurance systems. The initiative is being complemented by the construction and upgrade of 66 regional general hospitals in remote and underdeveloped areas, with 20 new facilities now operational. The statement was made during the annual state address marking Indonesia's 81st Independence Day.

Deficit Maintained Below 3 Percent

The Indonesian government has committed to keeping the 2027 state budget deficit below 3 percent of GDP, a move praised by economist Dipo Satria Ramli. The target comes alongside an aggressive spending plan of Rp4,097.2 trillion, which Ramli described as a clear pro-growth stance. He also questioned the effectiveness of some indirect welfare programmes and the feasibility of the 6 percent economic growth target.

Legal, Economic, and Democratic Review of the 14 August 2026 State Address

A legislative analysis questions whether the rapid pace of President Prabowo Subianto's 121 transformative policies aligns with legal precision and regional autonomy. While impressive macroeconomic figures and resource sovereignty measures are noted, concerns are raised about the potential reduction of fiscal independence for resource-producing regions. The evaluation calls for a critical examination beyond statistical growth to safeguard constitutional principles against centralisation.

Indonesia expands specialist medical education to 11 provinces

President Prabowo announced the expansion of specialist medical education programmes to 11 provinces to address the severe shortage of doctors, dentists, and specialists across Indonesia. He highlighted that hundreds of districts lack sufficient medical personnel, particularly in eastern regions, and that the government has opened nine new medical schools and 170 specialist programmes in collaboration with universities and hospitals. The initiative aims to improve access to adequate health services in underserved areas.

BPJS Kesehatan Encourages Use of OSS Ecosystem to Strengthen Business Compliance

Indonesia's national health insurer, BPJS Kesehatan, is pushing for greater integration with the Online Single Submission (OSS) system to improve business compliance with mandatory worker enrolment. The OSS platform, managed by the Ministry of Investment, currently covers around 17 million business entities, offering a strategic channel to ensure workers and their families maintain active JKN coverage. This initiative aims to move beyond administrative measures by embedding social security obligations directly into the business licensing ecosystem.

Prabowo Proposes Law Revision for Limited Dual Citizenship for Exceptional Talent

President Prabowo Subianto has proposed amending Indonesian law to allow limited dual citizenship for exceptional talents within the diaspora. The initiative aims to attract highly skilled individuals, including scientists and engineers, to contribute to national interests without forcing them to renounce their existing citizenships. The government plans to submit the proposal to parliament, emphasising that the policy will be implemented selectively with strict integrity checks and security safeguards.

Prabowo Plans Major Cuts to Fuel Subsidies

President Prabowo Subianto has announced the government will significantly reduce fuel subsidies as part of a strategy to curb consumption and reliance on imports. The policy is coupled with a national electric motorcycle ecosystem and incentives for one million domestically produced units. The government aims to lower household costs, reduce energy imports, and expand the domestic electric vehicle industry.

Prabowo: Sekolah Rakyat Key to Breaking Poverty Chain

President Prabowo Subianto has reaffirmed the government's commitment to Sekolah Rakyat (People's Schools) as a primary strategy to break the cycle of intergenerational poverty. The programme provides boarding education, nutrition, and digital access to children from the most disadvantaged families. The government plans to expand the network to 182 schools to ensure every district has at least one facility.

Prabowo announces push to build 5,000 rural bridges across Indonesia

President Prabowo Subianto has announced a major infrastructure drive to build over 5,000 village bridges by the end of 2026, with the military and police already completing thousands of structures. He emphasised that supporting the rural economy, including MSMEs and farmers, is critical for national resilience, drawing lessons from the 1998 financial crisis. The President also warned local leaders that the central government would directly intervene to address infrastructure gaps if they failed to act.

Hundreds of Israeli Settlers Storm Al-Aqsa Mosque Under Police Escort

Nearly 600 Israeli settlers, accompanied by police, entered the Al-Aqsa Mosque compound in East Jerusalem, performing religious rituals in violation of the longstanding status quo. The incursion occurred on the first day of the Hebrew month, a period when such actions typically intensify. The event is viewed by Palestinians as a severe provocation aimed at altering the religious and historical status of the sacred site.

Pekanbaru Scout Branch Chair Receives Darma Bakti Medal at 65th Scout Day Commemoration

Sulastri A., Chair of the Pekanbaru City Scout Branch, was awarded the prestigious Darma Bakti Medal by the National Scout Movement in East Jakarta. The honour recognises her outstanding service and collaborative efforts in advancing youth development through scouting. Sulastri dedicated the award to all stakeholders working together to educate the younger generation towards the Indonesia Emas 2045 vision.

Botasupal: Enhanced Rupiah Security Features Suppress Counterfeit Circulation

Indonesia's counterfeit money eradication body, Botasupal, has stated that advanced security features on the rupiah, such as the 'Spark Live' technology, are key to suppressing the circulation of counterfeit currency. The counterfeit ratio in Indonesia has reportedly fallen to around 2 notes per million in circulation as of August 2026, significantly lower than rates observed in other countries. Authorities are collaborating with Bank Indonesia to continuously upgrade security features and are urging the public to familiarise themselves with the authenticity markers of the rupiah.

81 Air Defence Assets to Conduct Full Dress Rehearsal on Saturday Ahead of Independence Day

The Indonesian Military (TNI) will hold a full dress rehearsal involving 81 air defence assets on Saturday in preparation for the 81st Independence Day commemoration. The rehearsal marks the final stage of training for pilots before their main performance on 17 August. The assets include fighter jets, transport aircraft, and helicopters from the Air Force, Army, Navy, Police, and Basarnas.

Heartwarming Story of Ummi, a Quran Teacher Sent on Umrah by the National Police Chief

Umsiyah Zulfa, a volunteer Quran teacher from a village in Indramayu, West Java, has been rewarded with a free umrah pilgrimage by National Police Chief General Listyo Sigit Prabowo. She has dedicated herself to teaching at the Imam Al-Ghozali Quranic Education Centre since 2016 without a fixed honorarium. The programme is part of a social initiative by the National Police and the Indonesian Police Lovers Community.

Aid Still Reaches Palestinians Besieged by Israeli Settlers in Qusra

Activists delivered essential supplies to Palestinian families trapped for nearly a week by Israeli settlers in Qusra, near Nablus. The siege has drawn sharp condemnation from the US ambassador to Israel, who labelled the settlers' actions as 'terror' and 'thuggish behaviour'. The incident unfolds amid broader tensions over law enforcement in the West Bank and renewed calls for annexation by right-wing Israeli ministers.

Prabowo outlines eight national priorities in 2027 Draft State Budget

President Prabowo Subianto has presented the 2027 Draft State Budget, outlining eight key priorities including food sovereignty, energy self-sufficiency, and downstreaming. The budget design aims for expansive and targeted growth, with a strong emphasis on policy synergy between fiscal, monetary, and the Danantara sovereign wealth fund. The President also stressed the importance of harmonising central and regional policies while maintaining strict anti-corruption measures and strengthening social protection programmes.

Prabowo Calls His Programme 'Marhaenism', Says PDIP Will Find It Hard Not to Support

President Prabowo Subianto outlined ten major transformative steps for Indonesia, including establishing a national mineral and commodities exchange by 2027. He jokingly labelled his policy approach 'Marhaenism', referencing the ideology of founding president Sukarno, and suggested the PDIP party would find it difficult to oppose his agenda. Prabowo also praised the synergistic cooperation between the government and the House of Representatives.

Upbit Indonesia Appoints New Head of Operations to Bolster Consumer Protection

Upbit Indonesia has appointed Irvan Tisnabudi as Head of Operations to enhance consumer protection and operational standards. Tisnabudi stressed the importance of public awareness in choosing regulated platforms to avoid risks like hacking, while committing to align with global standards and collaborate with the Financial Services Authority (OJK). The company views Indonesia as a potential regional hub for the digital asset economy, contingent on balancing innovation with strong governance.

Prabowo Pursues 100 GW Solar Power, Saving State Rp73.9 Trillion Annually

President Prabowo Subianto has announced plans to develop 100 gigawatts of solar power capacity across Indonesia, including remote islands, as part of a push for energy self-sufficiency. The initiative will be accompanied by the phasing out of 13 GW of diesel-fired power plants, which are deemed economically inefficient. The Coordinating Ministry for Economic Affairs estimates the shift could save the state at least Rp73.9 trillion per year in electricity production costs and reduced fuel imports.

President Prabowo Highlights Pegadaian's Performance Growth at 2026 MPR Annual Session

President Prabowo Subianto commended state-owned pawnbroker PT Pegadaian for its significant profit growth and strategic role in developing the national gold ecosystem during the 2026 MPR Annual Session. The company reported an 84.4 per cent year-on-year increase in net profit to Rp6.59 trillion for the first half of 2026. Pegadaian, which operates Indonesia's first licensed bullion bank, now manages approximately 153 tonnes of gold-based business.

Netizens Buzz Over 'Decile 10' Status, Shocked to Be Grouped with the '9 Dragons'

Indonesian netizens are expressing shock and confusion after checking their economic classification and finding themselves placed in decile 10, the wealthiest tier, alongside the nation's elite. The debate erupted on social media platform X, with many questioning the methodology used by Statistics Indonesia (BPS) to determine welfare groupings. BPS clarified that decile classification is based on dozens of socio-economic variables, not merely salary figures.

Prabowo Highlights Ministry Birthday Budgets: Better to Fix Schools and Raise Teacher Salaries

President Prabowo Subianto has called for an end to wasteful ceremonial spending, specifically citing ministry anniversary budgets, and urged that the funds be redirected towards school repairs and increasing teacher salaries. Speaking at the 2026 MPR Annual Session, he stressed that efficiency must be implemented at all levels of government, from central to village administrations. The President also demanded the eradication of corruption and budget mark-ups in government procurement.

441 Regional Hospitals to Be Revitalised, Prabowo Targets Advanced Hospitals in Every Region

President Prabowo Subianto has announced a major healthcare infrastructure drive, pledging to build and revitalise 441 regional general hospitals (RSUD) across Indonesia. The initiative aims to ensure every one of the nation's 514 regencies and cities is equipped with an advanced hospital capable of providing rapid, life-saving treatment. The programme will focus on strengthening facilities to handle the leading causes of death, including cancer, heart disease, and stroke, while also integrating clinics into local cooperative outlets to improve access.

State budget key tool to protect citizens: Prabowo

President Prabowo Subianto has outlined a vision for the 2027 state budget as a direct instrument for improving citizens' welfare, emphasising government intervention in areas like agriculture, fisheries, and social safety nets. He stressed that true independence must be felt through tangible benefits such as nutritious meals, affordable housing, and robust healthcare. The address, delivered at the opening of the parliamentary session, highlighted a fiscal policy focused on translating political sovereignty into concrete improvements in living standards.

Freedom to Create: Towards World-Class Intellectual Property

Indonesia recorded a 17.89% increase in intellectual property applications in the first seven months of 2026, signalling a strengthening of the national IP ecosystem. The government is pursuing reforms through institutional strengthening, digital royalty governance, and international cooperation, including a proposal at the WIPO General Assembly. Efforts also include brand protection for MSMEs, geographical indications, and the launch of a virtual consultation service to boost public awareness.

West Java Provincial Government Strengthens Forest Fire Prevention Measures During Dry Season

The West Java Provincial Government is intensifying efforts to prevent forest and land fires as the dry season heightens risks. Measures include increased patrols, public education, and cross-sector coordination, with authorities urging residents to avoid burning land or discarding cigarette butts carelessly. Data shows 90 fire incidents have already been recorded across 72 sub-districts in the province as of early August 2026.

Jambi DPRD Says National Health Insurance Without Doctors Is Insufficient

A Jambi provincial legislator has urged the central government to ensure the expansion of the National Health Insurance (JKN) programme is matched by an equitable distribution of doctors and medical facilities. Ivan Wirata, Deputy Chairman of the Jambi DPRD, argued that simply covering 96.8 million poor citizens is not enough if specialist doctors and adequate equipment remain unavailable. He highlighted the government's recent push to open new medical faculties as a crucial structural solution to the national shortage of healthcare professionals.

US Reinforces Iran Blockade, Oil Prices Become Target of War

The United States has signalled its ability to maintain a naval blockade against Iran indefinitely, with plans to intensify economic pressure. Vice President JD Vance revealed that keeping petrol prices low for American consumers has overtaken preventing Iran's nuclear programme as Washington's top priority. The strategic standoff has severely disrupted traffic through the Strait of Hormuz, threatening global oil supplies and economic growth.

Koster Issues Governor's Instruction, Adulterous Bali Civil Servants Face Dismissal

Bali Governor Wayan Koster has issued a new instruction allowing civil servants found committing adultery to face sanctions including dismissal. The regulation aims to enhance the performance, quality, and integrity of the provincial government's apparatus. A special team will be formed to monitor compliance and receive public complaints regarding violations.

Prabowo Aims to Accelerate Solar Power Plants to End Remote Islands' Reliance on Diesel

President Prabowo Subianto has announced an ambitious plan to build 100 gigawatts of solar power capacity, starting with 30 GW this year, to replace diesel generators. The initiative aims to boost national energy independence and eliminate the inefficient practice of shipping fuel to remote islands. The government estimates the full programme could save at least Rp73.9 trillion annually in electricity production costs.