Indonesian Political, Business & Finance News

Archive: 14 August 2026

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CNG Cylinder System Provides Cost-Efficient Energy for Yogyakarta Restaurant

A Padang restaurant in Sleman, Yogyakarta, has reported significant operational cost savings after switching to a compressed natural gas (CNG) cylinder system provided by PT Gagas Energi Indonesia. The business owner noted a roughly 30 per cent reduction in monthly fuel expenses compared to using LPG, while also benefiting from a more reliable and cleaner energy supply. The initiative is part of a broader effort by the PGN subsidiary to expand gas access to commercial customers not yet reached by pipeline infrastructure.

BI Holds Ferbi 2026 to Strengthen Public Understanding of Rupiah Management

Bank Indonesia (BI) has launched the Ferbi 2026 exhibition to educate the public on the journey of the rupiah and the importance of maintaining its quality and integrity. Despite the rise of non-cash transactions, BI emphasises that cash remains vital, with over half of Indonesians still using it for daily transactions. The event showcases modern and sustainable innovations in currency management, reinforcing the central bank's commitment to ensuring the rupiah is available and trustworthy across the entire archipelago.

DBS Indonesia Holds NextGen Excursion Programme for Business Successors

Bank DBS Indonesia is offering its wealth management clients an exclusive educational trip to Singapore for the next generation of business leaders. The DBS NextGen Excursion programme, held from 28 June to 1 July 2026, is designed to broaden the horizons and networks of participants aged 16 to 20. The initiative aims to equip young successors with the skills and connections needed to lead their family businesses in the future.

RI's bullion banks manage 153 tons of gold: Prabowo

President Prabowo Subianto announced that Indonesia's bullion banking ecosystem now manages 153 tons of gold, valued at approximately Rp360 trillion, since its launch last year. The initiative, involving state-owned Pegadaian and Bank Syariah Indonesia, aims to retain domestic gold wealth and strengthen the national economy. Pegadaian's customer base has expanded to 5.6 million, while BSI's total gold holdings have risen to 22.5 tons.

Attorney General's Office Defends Pre-Dawn Raid on Former Nutrition Agency Official's Home in Graft Probe

The Attorney General's Office (Kejagung) has defended the legality of a pre-dawn raid on the residence of Lodewyk Pusung, a former official of the National Nutrition Agency, arguing it was necessary to prevent the destruction of evidence. The raid was part of a simultaneous operation targeting three locations in a corruption investigation into the governance of the free nutritious meal programme (MBG). Kejagung also refuted claims that Pusung was not examined before being named a suspect, stating he had been questioned as a witness prior to his detention.

When Ideological Narrative Lacks Governance: The Risk of Corruption Behind Populist Programmes

The Prabowo administration's ambitious populist programmes, such as free nutritious meals and village cooperatives, risk becoming costly political theatre due to a deficit in institutional capacity. A significant gap exists between the expanding scope of state functions and the strength of state capacity, leaving massive budgets vulnerable to mismanagement and corruption. Experts argue that without robust technocratic governance, ideological narratives merely serve to legitimise unaccountable public spending.

Musi Banyuasin Regulates Community Oil Wells to Bolster National Energy Security

The government of Musi Banyuasin Regency, in collaboration with the South Sumatra Police, is formalising the management of thousands of community oil wells to ensure legal compliance, safety, and environmental protection. The initiative follows the issuance of Energy and Mineral Resources Ministerial Regulation No. 14/2025 and aims to integrate informal drilling activities into the formal economy through partnerships with regional enterprises and cooperatives. Authorities have verified over 8,000 wells and are implementing a barcode-based monitoring system to enhance oversight and minimise risks such as fires and pollution.

Prabowo: Green Economy Must Provide Direct Benefits to the People

President Prabowo Subianto has emphasised that the development of Indonesia's green economy must deliver direct benefits to the people, not just focus on environmental conservation. He announced the country's first carbon unit registration system and the establishment of a carbon exchange adopting international standards. The President noted that preserving forests, including protected areas, reduces emissions and can generate economic value as high-emission nations are willing to pay for carbon credits.

Customs Foils Smuggling of 64,000 Illegal Cigarettes in South Halmahera

Customs and Excise officers in Ternate have seized 64,000 illicit cigarettes at Jikotamo Port on Obi Island, South Halmahera. The contraband, valued at approximately Rp 95 million, was found abandoned on the dock after being unloaded from a passenger ship. The operation prevented an estimated Rp 61.9 million in potential state revenue losses.

KPK Examines Kuansing DPRD Chair and Ministry of Forestry Official in Bribery Case

The Corruption Eradication Commission (KPK) has examined the Chair of the Kuansing Regional House of Representatives and a Ministry of Forestry official as witnesses in a bribery case involving the non-active Kuansing Regent. The case relates to alleged bribery and gratuities connected to the release of limited production forest areas. Forestry Minister Raja Juli Antoni previously reported that the regent had left an envelope in his office, which he subsequently ordered to be returned.

Investment Realisation in Pandeglang Reaches Rp409 Billion in First Semester of 2026

Investment realisation in Pandeglang Regency, Banten, reached Rp409 billion in the first half of 2026, achieving 57.3 per cent of the government's annual target. The investment created 634 new jobs, with officials noting that the Serang-Panimbang toll road has been a key factor in attracting investors to five specific subdistricts. The local government is continuing to optimise promotion to attract both domestic and foreign investment.

Police Reconstruction of Senen Confinement Case Reveals No New Facts

The police reconstruction of the alleged confinement and abuse of printing company employees in Senen, Central Jakarta, did not uncover any new facts. The process involved re-enacting 41 scenes based on the accounts of victims, witnesses, and suspects. Authorities stated that the re-enactment was largely consistent with the existing investigation findings, with only minor discrepancies in positioning.

Prabowo Targets Only 300 State-Owned Enterprises by End of 2026, 750 to Be Shut Down

President Prabowo Subianto has announced a massive restructuring of Indonesia's state-owned enterprises, aiming to reduce the total number to just 300 by the end of 2026. The government discovered the actual number of BUMNs, including subsidiaries, was 1,074, far exceeding initial estimates. The President claims the streamlining has already saved over Rp50 trillion in overhead costs, with savings projected to reach Rp70 trillion by the end of 2026.

Prabowo Announces 92% Income Share for Online Motorcycle Taxi Drivers

President Prabowo Subianto has announced a significant policy shift in the gig economy, increasing the income share for online motorcycle taxi (ojol) drivers from 80% to 92%. The government has recommended that platform companies reduce their commission to just 8%, a move the President described as a necessary intervention to ensure fairness. Drivers have reportedly seen their incomes double or even triple following the implementation of the new scheme.

Aceh Satpol PP Officers Under Investigation After Viral Video Shows Alleged Theft During Cigarette Raid

Two Satpol PP officers in North Aceh are being investigated after a CCTV video went viral appearing to show a male officer pocketing a pack of cigarettes during a raid on illegal tobacco. The incident occurred at a kiosk in Krueng Geukueh, Dewantara District. The Head of Public Order and Peace confirmed that both officers are currently being questioned.

Prabowo targets renovation of all Indonesian schools by 2029

President Prabowo has announced an ambitious target to complete the renovation of all schools across Indonesia by 2029, including those in remote regions and Islamic boarding schools. The government has already increased the number of renovated schools from 17,000 to 71,644 and aims to renovate 100,000 more in each of the next two years. The programme is part of a broader strategy to improve human resources by pairing the nation's free nutritious meal scheme with quality education in adequate facilities.

Brigade Dempo to Unfurl 2,026-Metre Flag on Mount Dempo for 81st Independence Day

A community group in Pagaralam, South Sumatra, is preparing to set a record by unfurling a 2,026-metre-long Indonesian flag on the summit of Mount Dempo. The event, scheduled for the 81st Independence Day on 17 August 2026, aims to foster national unity and pride. The initiative is open to all hikers and the public, with support from the local government.

Constitutional Court Ruling Clarifies Legal Standing for Presidential Insult Complaints

The Indonesian government has welcomed a Constitutional Court ruling that clarifies only the president or vice president can file complaints regarding insults against their dignity. The decision provides legal certainty by confirming that such offences are complaint-based, preventing third parties from initiating legal action. The ruling upholds the criminal provisions for insulting the president while ensuring enforcement requires a direct complaint from the head of state or deputy.

Minister Supratman Welcomes Constitutional Court Ruling on Presidential Defamation Article

Minister of Law Supratman Andi Agtas has welcomed the Constitutional Court's decision to partially grant a judicial review of the presidential defamation article. The ruling clarifies that only the President and Vice President may file a complaint regarding alleged defamation against their dignity. Supratman stated the decision reinforces existing provisions in the Criminal Code and eliminates potential for misinterpretation.

Senator Komeng Supports Free Nutritious Meals Programme, Criticises Field Execution

Senator Alfiansyah Bustami, known as Komeng, has voiced support for President Prabowo Subianto's strategic programmes, including the Free Nutritious Meals (MBG) initiative, while criticising poor implementation on the ground. The DPD member from West Java stressed the need for transparent and accountable governance to ensure the programmes' benefits reach the people. He also lightheartedly endorsed the Kopdes Merah Putih village cooperative scheme, urging better execution.

President Prabowo Greets FLPP Beneficiary Andre from Samarinda at Annual Session

Andre Bangaru, a micro-entrepreneur from Samarinda, was personally greeted by President Prabowo Subianto during the MPR Annual Session. He expressed his delight at the recognition and highlighted how the government's subsidised housing scheme (FLPP) has helped people with irregular incomes like himself. The session also featured other beneficiaries of government programmes, including a farmer, a student receiving free meals, and a child returning to school.

Indonesian Scholarship Recipients in Australia Struggle with Rising Living Costs

Indonesian students on government scholarships in Australia are facing financial strain as living costs surge, with some forced into debt before departure. While tuition is covered, stipends often fall short of covering housing and family expenses, pushing recipients and their spouses to seek employment or make significant lifestyle sacrifices. The situation highlights the gap between scholarship provisions and the reality of supporting a family in Australian cities.

Prabowo Highlights Stories of Ordinary Citizens Benefiting from Government Programmes

President Prabowo Subianto used his State of the Union address to share the personal stories of eight ordinary Indonesians whose lives have been improved by government initiatives. The narratives covered food security, education, social protection, and housing programmes. The President highlighted individuals from across the archipelago, including a farmer in East Java, a student in Papua, and a rabbit trader in Samarinda.

Prabowo Optimistic Indonesia's Economic Growth Can Reach 6% by Year-End

President Prabowo Subianto has expressed confidence that Indonesia's economic growth can reach 6% by the end of 2026, driven by strong first-half performance and rising investment. He noted that the 5.45% growth in the first semester and 5.61% in the first quarter were the highest in 13 years. The President stressed that economic and investment growth must translate into direct improvements in public welfare.

Ngurah Rai Customs Foils Smuggling of 1,079 Grams of Narcotics from Thailand

Customs officers at Bali's Ngurah Rai Airport intercepted a Kazakh woman carrying over a kilogram of hashish from Thailand. The drugs, concealed in a black jar inside her luggage, were discovered during a routine risk-based inspection. The suspect and evidence have been handed over to the Bali National Narcotics Agency for further investigation.

KPK's 17 Sting Operations a Critical Alarm for Democracy Reform, Says LSAK

The Anti-Corruption Study Institute (LSAK) has stated that the 17 sting operations (OTT) conducted by the Corruption Eradication Commission (KPK) in the current period serve as a crucial warning for improving the democratic system, particularly regarding regional elections. The institute noted that the operations targeted not only regional heads but also officials in vertical agencies, including district courts, customs, and immigration. LSAK views the increased enforcement as proof that no official is immune from legal process, though it also highlights the serious problem of widespread corruption across various levels of government.

Man in Pelalawan Fakes Suicide Scene After Murdering Woman Who Rejected His Advances

Police in Pangkalan Kerinci, Pelalawan, have arrested a 27-year-old man for the murder of a female friend. The suspect staged the scene to appear as a suicide after the victim refused his sexual advances. Authorities uncovered the crime less than 24 hours after the incident was reported.

Six Forest and Land Fires Still Blazing Across Four Regencies in Riau

Firefighting teams are continuing to battle six active forest and land fires (Karhutla) across four regencies in Riau Province. The fires, which have been burning for several days, are affecting areas in Kampar, Rokan Hilir, Bengkalis, and Indragiri Hulu. Authorities are working to control the blazes, particularly on peatland, to prevent further spread and worsening air quality.

DPR Speaker: Ad Hoc Court for BUMN is a Warning for All State Institutions

Speaker of the House of Representatives (DPR) Supratman Andi Agtas clarified that the proposed ad hoc court to investigate state-owned enterprises (BUMN) is a warning for all state institutions, not just BUMN. He stated that there are currently no concrete plans to institutionalise the court, which was previously suggested by President Prabowo to probe mismanagement over the last 30 years. The proposal is framed as a measure to prevent and eradicate corruption.

Pegadaian Provides Financial Literacy Education to Jakarta's Motorcycle Taxi Drivers

State-owned pawnbroker PT Pegadaian is providing financial literacy education to motorcycle taxi drivers in North Jakarta to strengthen their financial management and business resilience. The initiative includes training on family financial planning, gold savings, and access to safe investment and financing products. The company also distributed basic food aid as part of its commitment to empowering the informal sector and protecting communities from illegal loans.

Senator Komeng Supports Prabowo's Free Lunch Programme, Urges Better Implementation

Senator Alfiansyah 'Komeng' Bustaman has voiced support for President Prabowo Subianto's strategic programmes, including the Free Nutritious Meals initiative, while criticising poor execution on the ground. The West Java senator stressed the need for transparent and accountable governance to ensure the benefits reach the grassroots. He also lightened the mood with a characteristic joke, saying the programmes were good, 'especially Komeng'.

DPD RI Awards 2026 Opens Nominations for Regional Heroes

The Regional Representative Council (DPD RI) has opened nominations for the DPD RI Awards 2026, seeking to honour unsung local heroes across Indonesia. The awards feature four categories, including non-formal education and food security, with the council chairman assuring the selection process is free from intervention. The initiative aims to recognise individuals who have significantly contributed to regional development but have remained under the radar.

Prabowo Targets 1,386 'Red and White Fishermen's Villages' by End of 2026

President Prabowo Subianto has announced an ambitious plan to build 1,386 'Kampung Nelayan Merah Putih' (Red and White Fishermen's Villages) across Indonesia by the end of December 2026. The initiative aims to capture more of the nation's estimated US$34 billion fisheries potential, which he claims is largely exploited by foreign vessels. The programme is expected to boost fishermen's welfare through improved infrastructure and has already coincided with rising export values and improved Fishermen's Terms of Trade.

Prabowo: Only 83,907 Uninhabitable Homes Renovated, Far from 400,000 Target

President Prabowo Subianto has acknowledged that the government's programme to renovate uninhabitable homes is significantly behind schedule, with only 83,907 houses completed by 30 June 2026 against a target of 400,000. He emphasised that a house is a place for families to seek shelter, learn, and grow, and pledged to work harder to increase the number of renovations. The President highlighted the success story of a beneficiary, Ibu Rema, whose family can now live comfortably after receiving the Self-Help Housing Stimulant Assistance (BSPS).

NeutraDC and PLN Collaborate to Power 200 MW Hyperscale Data Centre Expansion in Cikarang

NeutraDC, a subsidiary of Telkom Indonesia, has partnered with state electricity firm PLN to secure energy supply for a major hyperscale data centre expansion in Cikarang, West Java. The phased development, targeting up to 200 megawatts of additional capacity, aims to meet surging demand driven by artificial intelligence, cloud computing, and digital services. The collaboration is framed as a strategic move to strengthen Indonesia's digital infrastructure and position the country as a key player in the regional AI ecosystem.

Government Ready to Discuss Asset Forfeiture Bill, Awaits DPR Initiative

The Indonesian government has declared its readiness to deliberate the Asset Forfeiture Bill with the House of Representatives (DPR), but is awaiting the DPR to formally initiate the process. Minister of Law Supratman Andi Agtas stated that the DPR's Commission III is currently conducting public consultations. The government will only reveal its stance on the bill's substance after the DPR submits its initiative proposal.

Prabowo: Garuda Indonesia on Track for Profitability by 2027 After Reactivating Grounded Fleet

President Prabowo Subianto announced that national flag carrier Garuda Indonesia has successfully reactivated 20 grounded aircraft, bringing its total fleet to 140 planes. The state-owned airline, which was on the brink of bankruptcy, is now expected to return to profitability by early 2027. The President noted that the recovery would have been achieved sooner if not for the conflict in the Middle East.

President Prabowo Delivers State Address at MPR Annual Session

President Prabowo Subianto delivered his State Address during the MPR Annual Session and the Joint Session of the DPR and DPD on Friday, 14 August 2026. The speech, held at the Nusantara Building in the Senayan parliamentary complex, Jakarta, outlined the performance of the Red and White Cabinet over the past 21 months. The address took place ahead of the 81st anniversary of Indonesia's independence.

Prabowo Highlights Shortage of 84,781 Doctors in Indonesian Health Centres

President Prabowo Subianto has highlighted a critical shortage of medical personnel across Indonesia, revealing that nearly all community health centres lack complete staffing. Data shows a national deficit of 84,781 general practitioners, 127,580 dentists, and 55,712 specialists, with the most severe gaps in eastern Indonesia. The government has responded by opening nine new medical faculties and 170 specialist study programmes over the past 21 months.

Minister Confirms Online Motorcycle Taxi Presidential Regulation Ready for Prabowo's Signature

The ministerial-level deliberation of the Presidential Regulation on the digital transportation ecosystem has been completed, according to Law Minister Supratman Andi Agtas. The regulation, which will classify online motorcycle taxi drivers as micro-enterprises, is now awaiting President Prabowo Subianto's signature. The government aims to provide legal certainty and economic benefits for drivers while ensuring the sustainability of the digital transport ecosystem.

House Commission III Awaits Concrete Proposal for Prabowo's Special Court for Troubled SOEs

The House of Representatives' Commission III is awaiting a concrete proposal from President Prabowo Subianto regarding the establishment of a special ad hoc court to hold directors of problematic state-owned enterprises accountable. Prabowo expressed shock at the discovery of 1,074 SOEs, including subsidiaries, and suggested a special court to investigate management going back 30 years. Commission III noted that ad hoc courts for corruption already exist and highlighted progress in asset recovery by law enforcement.

Man with Toy Pistol in Ciputat Allegedly Stressed, Police Investigate

A man carrying what appeared to be a pistol in Ciputat, South Tangerang, caused a stir on social media. A local vendor who interacted with the man said he spoke about making viral videos and later asked about the armed individual, not realising he was the person in question. Police have since investigated and stated the weapon was a green plastic toy gun.

DPD RI Proposes 'Green Democracy' to Address Costly Politics and Demographic Challenges

The Regional Representative Council (DPD) has introduced the concept of 'green democracy' to balance political development with social, economic, and ecological sustainability. The proposal aims to make the democratic process more efficient and less costly while transforming Indonesia's demographic bonus into a national asset. The idea was presented during the annual session of the People's Consultative Assembly (MPR) ahead of the 81st Independence Day celebrations.

West Java DPRD Commits to Aligning Regional Development with National Policy

West Java DPRD member Iwan Koswara has affirmed the council's commitment to ensuring regional development aligns with national policy directions. His statement followed a plenary session where members listened to the President's State Address ahead of the 81st Independence Day. He stressed that synergy between central and regional governments is key to effective development.

Prabowo's Foreign Language Push for Primary Schools Hailed as Boost for Indonesian Migrant Workers

President Prabowo Subianto's plan to introduce foreign language learning from primary school has been welcomed as a strategic investment to enhance the competitiveness of Indonesian migrant workers. The policy aims to shift the paradigm from low-skilled labour to a professional, globally competitive workforce. Officials believe early language acquisition, combined with technical skills, will help Indonesian workers seize international employment opportunities.

Houthis Claim Drone Strike on Saudi Aramco Facility in Jizan

Yemen's Houthi rebels have claimed responsibility for a drone attack on a Saudi Aramco oil facility in Jizan, citing violations of Yemeni sovereignty. The strike marks an escalation in the region following the collapse of a long-standing ceasefire, amid heightened tensions between Iran and the United States.

President Prabowo Reports on 21 Months of Government Achievements at MPR Annual Session

President Prabowo Subianto addressed the MPR Annual Session, reporting on his administration's progress over 21 months. He highlighted the implementation of 121 transformative policies, achieving food self-sufficiency in eight commodities ahead of schedule, and the upcoming halt of diesel imports due to the B50 biodiesel programme. The President also noted the hard work of his ministers and the government's commitment to safeguarding national interests.

Prabowo Pushes for Foreign Language Learning from First Grade of Primary School

President Prabowo Subianto has urged the strengthening of foreign language education in Indonesia, proposing that instruction begin from the first grade of primary school. He highlighted the strategic importance of languages such as English, Mandarin, Arabic, Japanese, Korean, Spanish, French, and Russian to prepare the younger generation for global job competition and international cooperation.

Minister Supratman: President Prabowo's Statement on Illegal Mining Backing Must Be Implemented

Minister of Law Supratman Andi Agtas has stated that President Prabowo Subianto's remarks regarding alleged backing for illegal mining from elements within the TNI and Polri must be acted upon by all government officials. He emphasised that the President's statement requires no further validation and serves as a direct instruction. Supratman also noted that the President frequently reminds his aides to be cautious, warning that he will not defend any actions that go against the people's will.

President Prabowo Arrives at Parliament in Domestically Produced Maung MV3 Garuda Limousine

President Prabowo Subianto made a notable arrival at the Parliament Complex in Senayan on Friday, choosing the domestically manufactured Maung MV3 Garuda Limousine over an imported vehicle. The white tactical vehicle, developed by state-owned enterprise PT Pindad, served as the presidential transport for the Annual Session of the MPR and the Joint Session of the DPR-DPD. The use of the vehicle highlights the government's emphasis on showcasing national defence industry capabilities.