Indonesian Political, Business & Finance News

Archive: 14 August 2026

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Prabowo Says Indonesian Economy Remains Resilient Amid Global Pressures, S&P Maintains BBB Rating

President Prabowo Subianto has stated that Indonesia's economy continues to show resilience despite high global economic pressures. He highlighted that the nation's economic growth in the first half of the year was the highest in 13 years, while inflation remains under control. International confidence is further reflected by Standard & Poor's decision to maintain Indonesia's credit rating at BBB with a stable outlook.

IHSG Closes Up 1.59% Amid President Prabowo's Speech

The Jakarta Composite Index (IHSG) surged 1.59% to close at 6,401.89 on Friday, buoyed by a 20% rally in Bayan Resources shares. The strong performance occurred as President Prabowo Subianto delivered a speech at the parliament building. Despite the broad-based gains, foreign investors recorded a net sell of Rp377.63 billion across all markets.

Prabowo Presents 2027 State Budget, Targets 6 Percent Economic Growth

President Prabowo Subianto has outlined the government's macroeconomic assumptions for the 2027 State Budget, setting an ambitious economic growth target of 6 percent. The plan also aims to reduce poverty to between 6.0 and 6.5 percent and lower the open unemployment rate. The budget framework includes maintaining inflation at 2.5 percent and assumes an exchange rate of Rp17,500 per US dollar.

Prabowo to Add 3 Smart Screens to Every School After Positive Response

President Prabowo Subianto has announced plans to increase the budget for smart screens in schools, aiming to provide an additional three interactive flat panels (IFPs) to every school by the end of 2026. The initiative follows a positive reception to the initial programme, which saw each school receive one device. The government's ambitious education targets also include renovating all schools and making all state schools free of charge.

Philippines Optimistic About Economic Cooperation with China Despite South China Sea Dispute

President Ferdinand Marcos Jr. expressed optimism that the Philippines and China can continue their economic partnership, including joint energy exploration, despite ongoing tensions in the South China Sea. He highlighted the need for energy security and noted that discussions on joint exploration are progressing. Marcos also firmly stated that Manila's position on its sovereign rights has not weakened.

PDIP has not discussed strategy for facing 2029 General Election

The Indonesian Democratic Party of Struggle (PDIP) has not yet formulated a strategy for the 2029 General Election, citing that the polls are still several years away. The statement comes amid questions about the party's response to PSI Chairman Kaesang Pangarep's plan to contest the same Central Java electoral district as PDIP's Puan Maharani. Puan Maharani previously stated that nominating candidates in any district is the right of every political party.

DoGo Power Wins 2026 Top Innovation Award from EUPD Research for Grid-Forming Energy Storage

DoGo Power has received the 2026 Top Innovation Award from EUPD Research for its independently developed 4S grid-forming energy storage technology. The award, a key benchmark in the new energy sector, recognises the company's contribution to advancing the energy transition through sustainable innovation. The technology integrates EMS, PMS, PCS, and BMS to enhance grid stability and support the efficient integration of renewable sources.

President Prabowo Focuses on 8 National Priority Programmes in 2027 State Budget Draft

President Prabowo Subianto has outlined eight national priority programmes as the core focus of the 2027 State Budget Draft (RAPBN). The fiscal architecture is designed to be expansive yet collaborative and measured, aiming to boost economic growth and accelerate public welfare improvements. The President also stressed the importance of synergy between fiscal, monetary, and financial sector policies, alongside the Danantara investment authority.

Prabowo Extends Special Thanks to PDIP at DPR Plenary Session

President Prabowo Subianto expressed particular gratitude to the Indonesian Democratic Party of Struggle (PDIP) during a parliamentary session on the 2027 state budget. He also urged the House of Representatives to expedite regulations for a Mineral and Strategic Commodities Exchange. The president emphasised the need for swift action for the people, while acknowledging the importance of democratic oversight and criticism.

US VP Says Iran's Nuclear Programme No Longer Top Priority

US Vice President JD Vance has stated that restoring oil flow through the Strait of Hormuz has overtaken preventing Iran's nuclear ambitions as Washington's primary goal. The shift underscores Iran's leverage after effectively closing the strategic waterway, causing economic strain and declining public support for President Trump's war ahead of midterm elections.

Prabowo: Corruption in Free Nutritious Meals Programme is Inhumane

President Prabowo Subianto has strongly condemned any corruption within the Free Nutritious Meals (MBG) programme, calling perpetrators 'barbaric' for stealing from children's food. He emphasised that the programme is a crucial investment in human capital, aimed at combating stunting and ensuring children can learn effectively. Prabowo reaffirmed the government's commitment to continuing the programme with improved efficiency and oversight.

Cattle Cloning and the Future of National Meat Production

President Prabowo Subianto's proposal to utilise cattle cloning technology to bolster national meat self-sufficiency has sparked a strategic debate on the role of advanced biotechnology in Indonesian livestock farming. The technology, specifically Somatic Cell Nuclear Transfer (SCNT), offers a potential method to rapidly multiply genetically superior cattle, but experts caution it is not a standalone solution. The discussion highlights the need to integrate cloning into a broader breeding system that also addresses feed, health, and management, while carefully selecting native breeds adapted to the tropical environment.

DKI Jakarta Council Urges Provincial Government to Retain Bicycle Lanes

A member of the DKI Jakarta Regional House of Representatives (DPRD) has urged the provincial government to maintain the city's bicycle lanes, arguing they are essential for an environmentally friendly transport system and public health. This comes as the administration reviews the lanes' effectiveness, citing reduced cyclist numbers post-pandemic and issues with poor maintenance and encroachment by other vehicles. The Governor is expected to make a final decision after gathering input from various stakeholders.

Garuda Indonesia Resumes Bandung-Denpasar Route, Boosting Tourism and Business Connectivity

Garuda Indonesia has resumed direct flights between Bandung and Denpasar, marking the airline's return to Husein Sastranegara Airport following its reactivation for commercial jet operations. The new route aims to strengthen the movement of tourists and business actors between West Java and Bali, two regions with significant tourism and creative economy markets. Bandung's mayor welcomed the development, expressing hope it will spur further domestic and international flight connectivity.

Prabowo Refuses to Let Foreign Powers Dictate Indonesia's Wealth, Parliament Shouts: 'Fight!'

President Prabowo Subianto has decried the practice of Indonesia's natural resources being priced by foreign commodity exchanges, calling the situation illogical. In a speech on the 2027 state budget, he rallied members of parliament, who responded with chants of 'Fight!' and pledged support for fundamental change.

Jakarta Government Seeks Solution for Cilincing Illegal Dumpsite Economy

The Jakarta provincial government is preparing solutions for the socio-economic issues surrounding an illegal waste disposal site in Cilincing, North Jakarta, which has become a source of livelihood for residents. While enforcement against illegal waste management will continue, authorities acknowledge the need to address the informal circular economy that has developed there. A dedicated team has been formed to find a balanced approach that ensures both legal compliance and economic sustainability for the affected community.

IPB Expert Urges Mitigation of El Niño Impact on Food Production

An agricultural expert from the Bogor Agricultural Institute (IPB) has warned that the strong El Niño phenomenon forecast for the second half of 2026 could reduce national food production. Dwi Andreas Santosa highlighted that commodities like rice and maize are particularly vulnerable, potentially declining by 3-5 per cent, despite recent self-sufficiency claims by President Prabowo Subianto. He stressed the need for mitigation measures as the extreme dry weather follows a favourable La Niña period that boosted harvests.

Prabowo Slams Ministries and Regional Governments for Fragmented Procurement: 'Illogical'

President Prabowo Subianto has sharply criticised the practice of ministries, agencies, and regional governments purchasing identical goods separately, leading to inflated prices and weakened state bargaining power. He highlighted that consolidating procurement through the Government Goods/Services Procurement Policy Institute (LKPP) has already yielded significant savings, with the potential to save up to Rp360 trillion annually. The President announced plans to mandate consolidated, digitally-driven procurement to ensure fiscal discipline and transparency.

Prabowo: First-Half 2026 Economic Growth Highest in 13 Years

President Prabowo Subianto announced that Indonesia's economy grew by 5.45% year-on-year in the first half of 2026, marking the highest growth rate in 13 years. He highlighted that this performance was achieved despite global challenges, including geopolitical tensions and high interest rates. The President also noted a 21.3% increase in state revenue and a controlled budget deficit of 0.91% of GDP, asserting that fiscal discipline and public welfare can be pursued simultaneously.

Prabowo Presents RAPBN 2027 Macro Assumptions: 2.5% Inflation and Rp17,500 Exchange Rate

President Prabowo Subianto has outlined the macroeconomic framework for the 2027 State Budget, targeting inflation at 2.5% and economic growth at 6%. The assumptions also include a 10-year government bond yield of 6.9% and a rupiah exchange rate of Rp17,500 per US dollar, reflecting a weaker projection compared to the previous year's budget.

DPD Speaker: Indonesians' Love for Country Endures Through Crises

Speaker of the Regional Representative Council (DPD) Sultan B. Najamudin asserted that the Indonesian people's unwavering love for their country has enabled the nation to withstand economic crises, natural disasters, and political turmoil. Speaking at the 2026 Annual Session of the MPR, he highlighted the resilience of ordinary citizens, from teachers and midwives to farmers, who continue to serve despite limitations. He called for national unity, stressing that political differences must not sever fraternal bonds or undermine the nation's goals.

Banyuwangi Regent Holds Direct Dialogue to Address Farmers' and Fishermen's Issues

Banyuwangi Regent Ipuk Fiestiandani launched a regular forum to directly hear and address the concerns of local farmers, fishermen, and livestock breeders. The inaugural 'Gesah Bareng Ambi Bupati' session saw residents raise issues including market access, product downstreaming, and fishing zone regulations. The regent instructed relevant agencies to follow up on proposals, such as strengthening the supply chain for local products and supporting the inclusion of local milk in government programmes.

Prabowo Targets 2027 State Budget Deficit at 2.4 Percent, Lower Than 2026

President Prabowo Subianto has set the 2027 State Budget (APBN) deficit target at 2.4 percent of GDP, or Rp 671.2 trillion, a reduction from the 2026 target. The government plans to increase state spending to Rp 4,097.2 trillion while aiming for revenues of Rp 3,426 trillion. Prabowo emphasised a commitment to fiscal prudence while simultaneously pursuing economic growth and public welfare.

Prabowo: China's Lianhe Rating Gives Indonesia's Panda Bonds Highest AAA Rating

President Prabowo Subianto announced that China Lianhe Rating has assigned Indonesia's Panda Bonds the highest AAA/Stable rating. He stated this reflects international confidence in the country's solid economic fundamentals and effective government policies. Prabowo emphasised that such recognition is a result of consistent implementation and hard work.

Bareskrim Foils Smuggling of 28 Tonnes of Tin to Malaysia, Two Named Suspects

The Indonesian National Police's Criminal Investigation Agency (Bareskrim) has disrupted an illegal tin smuggling operation in East Belitung, seizing 28 tonnes of tin sand destined for Malaysia. Two individuals have been named as suspects, with one acting as a middleman and the other as a driver. Authorities are continuing to investigate the wider network involved in the illicit mining and international smuggling ring.

DPD: Archipelagic Regions Bill a Gift for the Community

The Speaker of Indonesia's Regional Representative Council (DPD) has hailed the Archipelagic Regions Bill as a long-awaited 'gift' for millions of citizens. Sultan Najamudin stated the legislation, which has been under discussion since 2017, will provide a crucial legal framework to ensure equitable development and special attention for island regions. He expressed confidence that the bill, now a priority in the 2026 National Legislation Programme, will be passed as a key legacy of President Prabowo's administration.

Prabowo Plans to Renovate 10,000 Community Health Centres at Rp4 Billion Each

President Prabowo Subianto has announced a major healthcare infrastructure initiative to renovate 10,000 community health centres (Puskesmas) across Indonesia starting in 2027. The government will allocate approximately Rp4 billion per unit, with additional funding directed towards more remote and underdeveloped regions. The programme, which also includes building public health laboratories in all 514 districts and cities, is targeted for completion by 2030.

Framework of 2027 State Budget: Deficit Set at 2.4% of GDP, Economic Growth Targeted at 6%

President Prabowo Subianto has unveiled the macroeconomic framework for the 2027 State Budget (RAPBN), targeting a deficit of 2.4 percent of GDP, which is lower than the 2026 target. The budget is built on ambitious assumptions including 6 percent economic growth and state revenue of Rp 3,426 trillion. The government also aims to reduce poverty and unemployment while managing a planned increase in state expenditure.

President Prabowo Praises Pegadaian's Performance at MPR Annual Session

President Prabowo Subianto commended the significant profit growth of state-owned pawnbroker PT Pegadaian during his address at the 2026 MPR Annual Session. The company reported a net profit of Rp6.59 trillion in the first half of 2026, an 84.4 per cent year-on-year increase. The President also highlighted Pegadaian's strategic role in developing the national gold ecosystem through its bullion bank services.

What Are Desil 1 to 10? Criteria and How to Check via Official Link

The Indonesian government is preparing a scheme to restrict subsidised Pertalite fuel for households classified in desil 9 and 10, the wealthiest segments of the population. Desil is a statistical classification dividing the population into ten groups based on welfare levels, with desil 1 being the poorest and desil 10 the richest. Citizens can verify their desil grouping through the Ministry of Social Affairs' Cek Bansos website or mobile application using their national identity number.

Beware of Indonesia's Economic Signals

Indonesia's economy grew 5.29% in the second quarter of 2026, but leading indicators point to a looming slowdown. The OECD's Composite Leading Indicator has fallen for six consecutive months, while domestic investment and consumer confidence are weakening. With the trade surplus shrinking dramatically, the government faces pressure to bolster purchasing power and restore investor confidence.

SOE profits to fund industrial downstreaming acceleration: Prabowo

President Prabowo Subianto has announced that state-owned enterprise profits, which surged to Rp360 trillion in 2025, will be channelled into accelerating Indonesia's downstream industrial projects. Sovereign wealth fund Danantara has already commenced 13 projects, including coal-to-DME processing and copper smelting, with a further 13 planned. The president also outlined an 'upstreaming' strategy to acquire leading foreign companies, aiming to secure technology and market access to transform Indonesia into an advanced industrial power.

IDX: JCI Strengthening a Response to President's Speech on Growth Opportunities

The Indonesia Stock Exchange (IDX) stated that the strengthening of the Jakarta Composite Index (JCI) was driven by positive market reactions to President Prabowo Subianto's state address. The President highlighted economic stability and growth opportunities, including a realised investment of IDR 1,931 trillion in 2025. The IDX believes this positive sentiment will encourage the growth of listed companies and attract further investment.

Prabowo Reveals Evidence of Indonesia's Strong Economy, Citing Foreign Agency Reports

President Prabowo Subianto has asserted the resilience of the Indonesian economy amidst global uncertainty, citing positive assessments from international rating agencies. He highlighted that Standard & Poor's maintained Indonesia's BBB investment grade rating with a stable outlook, while China Lianhe Rating assigned a AAA rating for the nation's Panda Bonds. The President also noted that state revenue grew by 21.3% in the first half of the year, with the budget deficit kept under control at 0.91% of GDP.

President Prabowo reveals 2027 state budget draft focused on 8 priority programmes

President Prabowo Subianto has announced that the 2027 Draft State Revenue and Expenditure Budget (RAPBN) will focus on eight national priority programmes, including food sovereignty, energy independence, and education. The budget architecture is designed to be expansively collaborative, aiming to accelerate economic growth and improve public welfare. Prabowo also stressed the need for synergy between fiscal and monetary policies, as well as the strengthening of law enforcement and anti-corruption efforts.

Danantara Leadership Deserves Award for SOE Transformation, Says Lawmaker

Andre Rosiade, Deputy Chairman of Commission VI of the Indonesian House of Representatives, stated that the leadership of Danantara deserves an award for their hard work in restructuring state-owned enterprises (SOEs). He noted that the transformation has led to measurable performance improvements, including significant profit increases across multiple SOEs. President Prabowo Subianto also gave special recognition to the Danantara team during the Annual Session, citing major turnarounds such as an 804.7 percent net profit surge at PT Timah following a crackdown on illegal mining.

Prabowo to Upgrade LKPP to Government Procurement Agency, Here's Why

President Prabowo Subianto has announced plans to elevate the National Public Procurement Agency (LKPP) into a full Government Procurement Agency to centralise all central and regional procurement. He cited that consolidated regional procurement already achieved 20.86% efficiency in 2025, with potential savings of up to Rp 360 trillion annually from the Rp 1,200 trillion procurement budget. The reform aims to standardise specifications, aggregate demand, and implement digital, transparent processes across all ministries, agencies, and local governments.

Cross-Country Education Leaders to Discuss Holistic Education at GIHES

Hundreds of education leaders from across Asia will gather in Jakarta in September 2026 for the Global Islamic Holistic Education Summit (GIHES). The forum, part of Pondok Modern Darussalam Gontor's centenary celebrations, aims to address the mental fragility of modern youth and promote the pesantren model as a global solution. Organisers seek to foster international collaboration to strengthen holistic education systems that balance character and leadership development with modern challenges.

Prabowo: State Budget Deficit Maintained at 0.91 Percent of GDP

President Prabowo Subianto has stated that Indonesia's state budget deficit was maintained at 0.91 percent of GDP through the end of July 2026, despite robust spending growth. State revenue grew by 21.3 percent year-on-year, while expenditure increased by 18.2 percent, directed towards social assistance and economic stimulus. The President emphasised that the government can simultaneously pursue pro-people policies and maintain fiscal discipline.

Drone Technology and Water Bombing Extinguish Forest Fires at Mount Bromo

Firefighting efforts at the Bromo Tengger Semeru National Park have successfully suppressed the spread of forest and land fires using integrated drone surveillance and helicopter water bombing. Authorities confirmed that no active hotspots remained as of Friday afternoon, although manual ground checks continue to extinguish any residual smouldering. The fire has scorched approximately 1,120 hectares of land, damaging endemic vegetation such as mountain pines and acacia trees.

Prabowo Targets Indonesia's GDP at Rp 27,987 Trillion in 2027 Draft State Budget

President Prabowo Subianto has announced that the 2027 Draft State Budget (RAPBN) assumes Indonesia's gross domestic product (GDP) will reach Rp 27,987 trillion. With planned financing of Rp 671.2 trillion, this would result in a budget deficit of 2.40 per cent of GDP. The President stressed the importance of the 2026 Economic Census in providing accurate data for policy and budget formulation.

After Prabowo's Speech, Tamsil Linrung Says Economy Still Has Hope

Deputy Speaker of the Regional Representative Council (DPD) Tamsil Linrung has expressed optimism about Indonesia's economic trajectory following President Prabowo Subianto's state address. He cited a declining Gini ratio and agricultural stability as evidence that growth is reaching lower-income groups. Linrung also praised efficiency measures in state-owned enterprises and supported plans to rationalise the banking sector.

Prabowo Promises Air Ambulances and Flying Doctors for Remote Regions

President Prabowo Subianto has pledged to introduce air ambulances and flying doctor teams to overcome healthcare access limitations in Indonesia's remote areas. He highlighted tragic cases of pregnant women and infants dying en route to distant hospitals, vowing such incidents must not recur. The initiative is part of a broader plan to revitalise 441 regional public hospitals, with a focus on treating major causes of death such as cancer, heart disease, and stroke.

PGN Continues Household Gas Network Development to Reduce LPG Dependence

PT Perusahaan Gas Negara (PGN) is expanding its household gas network (jargas) in South Tangerang, targeting areas such as Bintaro Jaya, Graha Raya, and Villa Melati Mas. The state-owned company aims to reduce Indonesia's reliance on imported LPG by connecting more households to domestic natural gas. The project, part of a National Strategic Project, will see continued construction across new clusters in Tangerang.

BRI Consumer Expo 2026 Arrives at Summarecon Bogor with Home and Vehicle Financing Offers

The BRI Consumer Expo 2026 is taking place at Summarecon Bogor on 15-16 August, showcasing a range of property and vehicle financing solutions. The event features promotional mortgage (KPR) rates starting from 1.75% p.a. and car loan (KKB) rates from 1.81% p.a., alongside special discounts and incentives. Visitors can explore conventional, hybrid, and electric vehicles while accessing on-site financial consultations.

Prabowo Proposes Upgrading LKPP to Government Procurement Agency

President Prabowo Subianto has proposed elevating the National Public Procurement Agency (LKPP) into a full-fledged Government Procurement Agency (BPP) to consolidate state spending. He argued that fragmented purchasing by ministries and regional governments weakens the state's bargaining power, citing a successful pilot that reduced the cost of interactive flat panels for schools from Rp 150 million to Rp 26 million per unit. The President estimates that disciplined, data-driven consolidation could yield annual efficiencies of up to Rp 360 trillion (US$20 billion) from the government's Rp 1,200 trillion procurement budget.

Prabowo Assures Economic Census Not for Pursuing Personal Wealth, Urges Honest Participation

President Prabowo Subianto has urged all Indonesians to participate honestly in the ongoing economic census, assuring that the data collected will not be used to investigate personal wealth or income. He emphasized that accurate data is crucial for the government to formulate precise macroeconomic policies and the 2027 State Budget. The census will also serve as the basis for rebasing the country's economic calculations and updating the National Single Social and Economic Data (DTSEN).

PKS Legislator Responds to Prabowo's State Address, Calls for Measurable Impact

Johan Rosihan, a member of Indonesia's House of Representatives from the PKS faction, has responded to President Prabowo Subianto's state address, acknowledging its optimism while urging that government achievements be measured by tangible public impact. He highlighted the need for transparent data to verify claims regarding food self-sufficiency, energy resilience, and social welfare programmes. The legislator also noted the President's textual delivery was appropriate for the constitutional forum but stressed that parliamentary oversight would ensure the government's targets translate into real benefits for the people.

Prabowo eyes foreign language classes for first-graders

President Prabowo Subianto has announced plans to introduce foreign language instruction from the first grade of primary school, arguing that early childhood is the optimal period for language acquisition. The initiative targets languages including English, Mandarin, Arabic, Japanese, Korean, Spanish, French, and Russian, aiming to equip Indonesian workers with skills demanded by foreign nations seeking to recruit in sectors such as tourism, healthcare, and caregiving. The policy is framed as a strategy to boost the international competitiveness of the Indonesian workforce and drive domestic economic growth through remittances and global integration.

Puan: Asset Forfeiture Bill Still Awaiting Meaningful Public Input

House Speaker Puan Maharani stated that the Asset Forfeiture Bill is still in the process of receiving meaningful public participation to strengthen its substance and legitimacy. She emphasised that the House of Representatives and the government are committed to ensuring the law provides tangible benefits to the people. The remarks were made during a plenary session that also featured President Prabowo Subianto's speech on the 2026 State Budget.