Indonesian Political, Business & Finance News

Archive: 14 August 2026

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Hoax! Prabowo Borrows IDR 500 Trillion from Korea and Japan for Free Meals and Village Cooperatives

A Facebook post falsely claimed President Prabowo Subianto secured a IDR 500.5 trillion loan from South Korea and Japan to fund the Free Nutritious Meals (MBG) and Village Cooperatives (Kopdes) programmes. In reality, the accompanying image was from a meeting in Seoul where Indonesia and South Korea exchanged memoranda of understanding on strategic cooperation, not loan agreements. Official data also refutes the post's claim about Indonesia's total national debt reaching IDR 15,000 trillion.

Bekasi Government Demolishes 32 Illegal Structures Along CBL River for Normalisation Project

The Bekasi Regency Government has demolished 32 illegal buildings along the Cikarang Bekasi Laut (CBL) riverbank as a prerequisite for a major normalisation project. The operation targeted structures in Tambun Utara and Sukawangi districts to address severe sedimentation and land subsidence. Authorities plan to construct permanent embankments to restore the river's drainage capacity and mitigate annual flooding.

Prabowo: True Independence Means Every Rupiah Must Return to the People

President Prabowo Subianto has defined true independence as the state's ability to deliver tangible welfare to its citizens, stating that the national budget must serve as an instrument of struggle. He emphasised that the government must be present in every aspect of life, from providing fertiliser for farmers to ensuring children receive proper nutrition and education. The President concluded that independence is incomplete if the benefits of the state budget are not felt directly at every Indonesian family's dinner table.

OJK Chief Reveals Bank Credit Growth Outpaces Deposit Growth

Indonesia's Financial Services Authority (OJK) has reported that bank credit growth has surpassed the growth of third-party funds, leading to a slight decline in banking liquidity. Despite this, the regulator maintains that overall liquidity remains ample and the situation is a natural consequence of banks' efforts to support economic expansion.

Suspension of Detention for 5 Chicken Thief Assault Suspects Not Yet Granted

Police in Tabanan, Bali, have not yet granted a request to suspend the detention of five suspects involved in the fatal assault of a chicken thief. The police chief stated that the request cannot be processed until the results of toxicology and exhumation examinations on the victim are received. The suspects' legal team has also raised allegations that individuals from outside the village may have been involved in the fatal beating.

Santri of Al-Falah Damanhuri No Longer Face Water Shortages as Borehole and Sanitation Facilities Arrive at Pesantren

Pondok Pesantren Al-Falah Damanhuri in West Bandung has received a borehole and proper sanitation facilities, resolving a long-standing clean water shortage for its 150 students. The programme, funded by Majelis Telkomsel Taqwa (MTT) in collaboration with Rumah Zakat and Atap Pesantren Network, aims to improve health, hygiene, and comfort for the students. Pesantren leaders expressed gratitude, noting the new facilities will support daily activities, worship, and create a healthier learning environment for current and future generations.

S&P positively assesses Danantara's role in natural resource management, says Prabowo

President Prabowo Subianto has stated that Standard & Poor's views Danantara's role in managing Indonesia's natural resources positively. The international rating agency specifically highlighted the potential of PT Danantara Sumberdaya Indonesia in combating under-invoicing and transfer pricing practices. S&P's affirmation of Indonesia's BBB rating with a stable outlook reflects confidence in the country's economic prospects and prudent resource management.

KAI Jember Offers 17% Discount on Seven Trains for Indonesia's 81st Independence Day

PT Kereta Api Indonesia's Jember operational area (Daop 9) is offering a 17% discount on tickets for seven commercial economy trains to mark the 81st anniversary of Indonesian independence. The promotion is valid for travel on 17 August 2026, with tickets available for purchase from 14 to 17 August 2026, subject to availability. The initiative aims to encourage the use of public transport and provide affordable travel options for the public during the national holiday.

Telkom Eyes Enterprise Segment Growth in Synergy with Danantara

State-owned telecom giant Telkom Indonesia is restructuring its enterprise business segment to boost its contribution to total revenue, currently at 19 trillion rupiah (11%). The company is collaborating with the newly formed Investment Management Agency Danantara to strengthen national digital capabilities, targeting future technologies such as AI, cybersecurity, and data sovereignty.

28 Tonnes of Illegal Tin Nearly Smuggled to Malaysia, Bareskrim Raids Warehouse in Belitung

Indonesian police have seized 28 tonnes of illegal tin sand in East Belitung, arresting two suspects and preventing the material from being smuggled to Malaysia. The raid is part of a broader crackdown on illegal mining in the Bangka Belitung Islands, which President Prabowo Subianto says has led to a ninefold increase in profits for state-owned PT Timah.

Prabowo to Renovate 10,000 Community Health Centres with IDR 4 Billion Each

President Prabowo Subianto has announced a major healthcare infrastructure initiative, pledging to renovate 10,000 community health centres (Puskesmas) across Indonesia. Each facility will receive approximately IDR 4 billion in funding, with the programme targeted for completion by 2030. The President emphasised that Puskesmas must serve as the nation's first line of defence in public health, ensuring basic medical services are accessible close to where people live.

President Prabowo Proposes Rp4,097 Trillion State Budget for 2027, Focusing on Eight Priority Programmes

President Prabowo Subianto has proposed a state budget of Rp4,097.2 trillion for the 2027 fiscal year, marking an increase from the 2026 budget. The spending plan is centred on eight national priority programmes, including food sovereignty, energy independence, and education. The government also aims to maintain a controlled fiscal deficit while boosting state revenue.

BPBD: 159 Villages and Sub-districts in Riau Prone to Forest and Land Fires

The Riau Provincial Disaster Mitigation Agency (BPBD) has identified 159 villages and sub-districts across 12 regencies and cities as being highly susceptible to forest and land fires (karhutla). This assessment comes as the provincial government has declared a state of emergency from 13 February to 30 November 2026 to strengthen disaster mitigation efforts. The warning is underscored by the detection of 46 hotspots within Riau province on Friday, amidst a total of 489 hotspots recorded across Sumatra.

Female Band Vocalist Reported to Police Over 'Takbir-Style' Pose at North Jakarta Concert

A female vocalist, identified by the initial C, has been reported to the Polda Metro Jaya for alleged blasphemy after a photo of her posing in a 'takbir'-like stance during a concert went viral. The police have confirmed receiving the report and will investigate the incident under articles related to religious defamation. The vocalist has since issued a public apology, stating the pose was an expression of personal gratitude for achieving a career milestone and was not intended to insult any religion.

Prabowo Targets Oil Lifting of 610,000 Barrels per Day by 2027

President Prabowo Subianto has set an ambitious target for Indonesia's oil lifting to reach 610,000 barrels per day by 2027, alongside a broader economic growth goal of 6%. The government also aims to reduce the poverty rate to between 6.0% and 6.5% and maintain crude oil prices around US$75 per barrel.

DPD Deputy Speaker GKR Hemas Stresses Need for Regionally Equitable Development

Deputy Speaker of the Regional Representative Council (DPD), GKR Hemas, has emphasised that national development must be oriented towards strengthening regions, aligning with the theme 'Strong Regions, Sovereign Indonesia'. She highlighted the importance of translating central government policies into tangible benefits for local communities and welcomed the inclusion of the Archipelagic Regions Bill in the 2026 legislative priority list. Hemas called for robust synergy between central and regional governments to ensure equitable development and justice for all areas, including the outermost islands.

Titiek Soeharto Applauds Prabowo's Food Self-Sufficiency Achievements

House of Representatives Commission IV member Titiek Soeharto has praised President Prabowo Subianto's administration for achieving self-sufficiency in rice and corn ahead of his two-year leadership milestone. She noted that the government must now focus on attaining self-sufficiency for other commodities, including garlic, soybeans, and meat. Titiek also highlighted progress in other areas such as house and school renovation programmes.

Bekasi Regional Secretary Says Satellite Wells Are Solution to Drought

The Bekasi Regency government is shifting its focus from water tanker distribution to constructing satellite wells as a permanent solution to the escalating drought crisis. The move comes as the disaster agency reports that water shortages have spread to 172 locations across 32 villages. Officials believe that providing each village with its own well will eliminate reliance on temporary aid and ensure a stable water supply during prolonged dry seasons.

Indonesia Possesses Manufacturing Capability for Molinas, Says Len Industri CEO

PT Len Industri's CEO asserts that Indonesia has the necessary manufacturing, technology, and market capabilities to develop the national electric motorcycle ecosystem, Molinas. The programme, orchestrated by Danantara, aims to integrate various industry players into a cohesive ecosystem with financial support including low-interest loans. President Prabowo Subianto recently inaugurated the Molinas ecosystem, praising the initiative as a strategic move to reduce fuel imports.

Police Maritime Unit Evacuates Pregnant Woman from Remote Island in Manggarai Barat

Personnel from the East Nusa Tenggara (NTT) Police maritime unit evacuated a pregnant woman from Papagarang Island to Labuan Bajo for urgent medical care after her waters broke. The operation, conducted at night despite low tide, highlights the critical role of the police in providing humanitarian services across the archipelago. The police director emphasised that geographical challenges are no excuse to halt rescue efforts, ensuring remote communities are not alone during emergencies.

President Prabowo Urges Public Participation in 2026 Economic Census for Accurate Budget Planning

President Prabowo Subianto has called on all Indonesians to participate in the 2026 Economic Census, assuring that the data collected will not be used to pursue personal wealth or income. The census, to be conducted by Statistics Indonesia (BPS) with 251,000 field officers, is intended to enable more precise policymaking and state budget formulation. Prabowo highlighted that accurate economic data could reveal a larger GDP, potentially resulting in a smaller budget deficit than currently projected.

Puan Maharani: 2027 State Budget to Approach IDR 4,000 Trillion

House Speaker Puan Maharani has revealed that the 2027 State Budget (APBN) will approach IDR 4,000 trillion, marking a nearly 20-fold increase since 2000. She emphasised that a budget of this magnitude represents a political choice about national priorities and must deliver tangible benefits to the people.

China's Rating Agency Gives Indonesia AAA Rating, Says Prabowo

President Prabowo Subianto announced that China's Lianhe Rating has granted Indonesia an AAA/Stable rating, the highest level, for its Panda Bonds issuance. He also highlighted that Standard & Poor's maintained Indonesia's investment-grade rating, citing solid economic fundamentals and effective government policies.

Prabowo Targets 2027 State Revenue at IDR 3,426 Trillion, Up 8.5% from 2026

President Prabowo Subianto has set a state revenue target of IDR 3,426 trillion for the 2027 fiscal year, marking an 8.5% increase from the 2026 target. The government also plans to raise state expenditure to IDR 4,097.2 trillion, resulting in a planned budget deficit of IDR 671.2 trillion, or 2.40% of GDP, which is lower than the previous year's target.

President Prabowo Assures Citizens: Economic Census Data Will Not Be Used to Pursue Personal Wealth

President Prabowo has urged Indonesians to respond honestly to the ongoing 2026 Economic Census, guaranteeing that data collected by Statistics Indonesia (BPS) will not be used to investigate personal wealth or income. He emphasised that accurate data is crucial for formulating sound economic policies and the national budget, noting that the country has not conducted an economic rebasing in over a decade.

Prabowo to Renovate All Community Health Centres Across Indonesia

President Prabowo Subianto has announced a nationwide programme to renovate all community health centres (Puskesmas) starting in 2027, emphasising their role as the frontline of public health defence. The initiative will cover 10,000 Puskesmas across 7,285 sub-districts and includes the construction or renovation of public health laboratories in all 514 regencies and cities. The government aims to complete the entire project by 2030 to ensure basic health services are accessible close to where people live.

Mosque Caretaker in Cilacap Allegedly Molests and Rapes 24 Boys

Police in Cilacap, Central Java, have arrested a mosque caretaker accused of sexually abusing and raping at least 24 underage boys over an 11-year period. The suspect, identified as WR, was apprehended after a victim's parent filed a police report in July 2026. Authorities are continuing their investigation into the crimes, which took place in the suspect's neighbourhood and the mosque environment.

Video: Examining the Fate of the Middle Class in Prabowo's Speech

CNBC Indonesia reviews President Prabowo Subianto's state address, focusing on the government's performance over the first 21 months of the Merah Putih cabinet and its implications for the middle class. The analysis features insights from CNBC Indonesia's economist, Maesaroh.

Jakarta's JAKI App Now Uses AI to Detect Fake Complaint Photos

The Jakarta provincial government has integrated artificial intelligence into its JAKI application to identify manipulated or AI-generated images in citizen complaints. The new features, including AI Image Detection and AI Recapture Image Detection, aim to ensure the validity of reports and the evidence uploaded by officials. The administration also announced the upcoming JAKI & Fellowship Cities Forum 2026 to share best practices in digital transformation.

Kushner and BoP to Discuss Gaza Plan Implementation with Netanyahu

Jared Kushner and the Peace Council (BoP) are set to meet with Israeli Prime Minister Benjamin Netanyahu to discuss the next phase of the Gaza plan. The talks follow Netanyahu's rejection of a 15-point plan, with the US aiming to ensure coordination despite Israel's reservations. The proposed roadmap includes the disarmament of Hamas and the withdrawal of Israeli forces, against a backdrop of devastating conflict that has severely damaged Gaza's infrastructure.

President highlights studio learning, Minister confirms centralised studio in preparation

Minister of Primary and Secondary Education Abdul Mu'ti has confirmed that his ministry is preparing a centralised learning studio in Jakarta, following a directive from President Prabowo Subianto. The studio will support distance learning and broadcast lessons, including foreign languages, to thousands of schools. The initiative aims to provide children with better access to quality education to improve their future job competitiveness.

Bumi Bekasi Baru Retaining Wall Expected to Control Flooding in Rawalumbu

The Bekasi City Government has inaugurated a new retaining wall along the Rawalumbu River basin to mitigate flooding in densely populated areas. Mayor Tri Adhianto Tjahyono stressed that the infrastructure's effectiveness depends on a comprehensive upstream-to-downstream approach and announced nearly Rp500 billion in budget efficiencies to fund such projects. The administration is also focusing on long-term maintenance through community-based programmes to ensure the flood control systems remain functional.

House Speaker Puan Highlights Eight Issues of Public Concern

House Speaker Puan Maharani has outlined eight pressing issues requiring government attention, ranging from legal cases and employment to forest fires and BPJS Kesehatan access. Her remarks were delivered during a plenary session at the Parliament Complex in Jakarta. The session also featured a scheduled address by President Prabowo Subianto on the 2027 State Budget Bill.

President Prabowo: State Budget is a tool of struggle, not just a document

President Prabowo Subianto has emphasised that the State Budget (APBN) is a strategic instrument for protecting the people and realising the nation's ideals, rather than merely a financial document. He stated the budget must ensure the state is present in everyday life, from supporting farmers and workers to providing nutrition and education. The President also expressed appreciation to the House of Representatives for their cooperation in the budget process.

Prabowo Candidly Warns 2026 Will Not Be Easy, World Besieged by War

President Prabowo Subianto has issued a stark warning that 2026 will be a challenging year for the global economy, citing ongoing wars and heightened geopolitical tensions. He noted these factors are driving up energy prices, sustaining high global interest rates, and disrupting international trade. Despite these external pressures, Prabowo highlighted Indonesia's economic resilience, pointing to the highest first-semester growth in 13 years and controlled domestic inflation.

President Prabowo: Indonesia's Economy Grows at Fastest Rate in 13 Years in First Half of 2026

President Prabowo Subianto announced that Indonesia's economy grew at its fastest rate in 13 years during the first half of 2026, reaching 5.45 percent year-on-year. He highlighted that this growth was achieved alongside controlled inflation and strong domestic demand, despite ongoing global economic pressures. The President also noted that the state budget deficit remained well-managed at 0.91 percent of GDP, demonstrating a balance between public welfare spending and fiscal discipline.

Prabowo Says Government Has Renovated 83,907 Homes Through BSPS Programme

President Prabowo Subianto announced that the government has facilitated the renovation of 83,907 homes via the Self-Help Housing Stimulant Assistance (BSPS) programme as of mid-2026. He also highlighted that the Housing Financing Liquidity Facility (FLPP) has helped nearly 100,000 families secure homeownership. Prabowo emphasised that a house represents more than a physical asset, providing security, dignity, and a future for Indonesian families.

National Electric Car Programme: GAIKINDO Backs Initiative, Awaits Details on BYD or VinFast Involvement

Indonesia's automotive industry association, GAIKINDO, has expressed support for the government's national electric vehicle programme, which President Prabowo Subianto indicated will involve a production hub in Subang, West Java. While the association welcomes the potential boost to the local component supply chain, it remains unaware of specific details regarding the programme or whether it will involve manufacturers like BYD or VinFast, both of which are building facilities in the area. The government is targeting large-scale electric car production by 2028.

Prabowo targets 30,000 village cooperatives operational by 2026

President Prabowo Subianto has announced an ambitious target to have 30,000 village cooperatives fully operational by the end of 2026, as part of a strategy to build a self-sustaining, people-centred national economy. The initiative, which currently has 10,000 cooperatives in various stages of readiness, aims to equip them with digital inventory systems and transport to act as guaranteed buyers for local produce. This move is designed to eliminate supply-chain bottlenecks and prevent post-harvest losses for rural farmers and fishers.

Nusa Mandiri University's IEP 3+1 Programme Opens Professional Pathways for Students

Universitas Nusa Mandiri's Internship Experience Programme (IEP) 3+1 is providing students with direct professional experience in government and industry. One student, Abyansyah Alam, secured an internship at the Ministry of Cooperatives and SMEs, applying his data management skills in a real-world setting. The university highlights the programme as a key strategy to bridge academic theory with the practical demands of the workforce.

Two Cabinet Ministers Agree to Cameo in 'Mulai Dari Nol' Film, Inviting Citizens to Own Carbon Trading Businesses

Two Indonesian cabinet ministers are taking an unconventional approach to public education on carbon trading by appearing as cameos in a feature film. The film, produced by youth cooperative Kinarya Coop, aims to democratise the carbon market and promote the idea that high-value carbon trading should belong to the people through multi-stakeholder cooperatives. The production will also incorporate environmental programmes, including a waste management initiative and a mangrove planting scheme.

President Prabowo Targets 6% Poverty Rate and Lower Unemployment by 2027

President Prabowo Subianto has outlined ambitious economic targets for 2027, aiming to reduce the poverty rate to between 6.0 and 6.5 percent. The government also plans to lower the open unemployment rate and improve the Gini ratio, reflecting a more equitable income distribution.

OT Building in Jakarta Besieged by Protesters Over Alleged Quran Desecration in Promotional Event

A mass demonstration was held outside the Orang Tua (OT) building in West Jakarta, causing traffic congestion, in response to allegations of blasphemy linked to a promotional event. Protesters from the Front Persaudaraan Islam condemned the company for a recent festival where an alcoholic beverage was allegedly promoted using a Quran recitation challenge. The crowd gathered to demand accountability for what they deemed an improper use of the Islamic holy book.

Pollux Hotels Partners with Marriott International to Expand Hospitality Market in Indonesia

PT Pollux Hotels Group Tbk has entered a strategic partnership with Marriott International to strengthen its hospitality business and broaden market reach across Indonesia. The collaboration combines Pollux's deep understanding of the local market with Marriott's global network and standards. The initiative also focuses on developing local human resources and expanding Marriott's presence into second and third-tier Indonesian cities.

Koster Claims 70 Percent of Household Waste Segregation Achieved

Bali Governor Wayan Koster claims that household waste segregation has reached over 70 percent in Denpasar and Badung. He also addressed the construction of a waste-to-energy facility and the government's crackdown on illegal tourism accommodation, stating the latter is now under control with support from the Tourism Minister.

Jakarta Passes RPPLH Bylaw, Secures 30-Year Environmental Compass for Development

The Jakarta Provincial Government and DPRD have enacted the Regional Regulation on Environmental Protection and Management (RPPLH), establishing a legal framework to guide the city's development for the next 30 years. The bylaw aims to balance economic growth with environmental sustainability, addressing challenges such as pollution, climate change, and limited natural resources. It mandates the integration of environmental considerations into all development planning and will be subject to regular public monitoring and evaluation.

Prabowo Jokes About Coffee and Election Support During MPR Annual Session Speech

President Prabowo Subianto lightened the mood during his state address at the 2026 MPR Annual Session by pausing to drink coffee and joking that coffee-producing regions would surely support him. The speech also outlined key government agendas, including 121 transformative policies and a commitment to long-term national development. Prabowo emphasised that governance must be guided by the constitution, the people's interests, and the needs of future generations.

Prabowo Sets 8 National Priority Clusters for 2027

President Prabowo Subianto has outlined eight national priority clusters for the 2027 Draft State Budget (RAPBN), focusing on food sovereignty, energy independence, and poverty reduction. The government plans state expenditure of Rp 4,097.2 trillion, targeting economic growth of 6 per cent. The budget deficit is projected to narrow to 2.40 per cent of GDP.

Vocalist Clareesya Reported to Police Over 'Takbir Gesture' Photo After Music Festival Performance

Clareesya, vocalist of the band RoBoKop, has been reported to the Polda Metro Jaya for alleged religious defamation following a social media post. The report concerns a photo of her on stage with her hands raised, captioned 'Gaya takbir' (takbir gesture), which she stated was an expression of gratitude for performing at a major music festival. Police have confirmed receipt of the report and are investigating the matter, while the singer has publicly apologised, asserting she had no intention of insulting any religion.

KSOP Labuan Bajo Employee Allegedly Assaults Parking Attendant

A parking attendant at Marina Labuan Bajo port has reported being assaulted by an employee of the local harbourmaster's office (KSOP). The victim, Engelbertus Abun, claims he was punched four times in the head and face, resulting in swelling, dizziness, and nausea. The incident, captured on CCTV, allegedly occurred after the victim opened a gate for a Pertamina fuel tanker.