Indonesian Political, Business & Finance News

Archive: 14 August 2026

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KPK Traces Ownership of 1.3 kg Gold Seized in Tax Bribery Case

Indonesia's Corruption Eradication Commission (KPK) is investigating the ownership of 1.3 kilograms of gold and Rp 100 million in cash found during a search of a tax official's home in Malang. The seizure is linked to a bribery case involving the former head of the Banjarmasin Tax Office, Mulyono, who is accused of manipulating a Rp 48.3 billion tax restitution. Ten witnesses, including four tax officials and six private sector employees, have been questioned as part of the probe.

Prabowo credits Danantara for gains at state firms

President Prabowo Subianto has attributed significant profit increases across Indonesian state-owned enterprises to reforms implemented by the Danantara investment body. He reported that total SOE profits reached Rp326 trillion in 2024, with net dividends nearly tripling to Rp138 trillion, and highlighted that these funds are being channelled into downstream processing projects and potential global acquisitions.

East Kalimantan Provincial Government Strengthens Data and Facility Monitoring for Free Nutritious Meal Programme

The East Kalimantan Provincial Government is accelerating the finalisation of beneficiary data and auditing food fulfilment facilities to support the national Free Nutritious Meal (MBG) programme. Regional Secretary Sri Wahyuni has instructed health agencies to verify data on stunted children and ensure operational units meet hygiene standards. The initiative follows a directive from the Home Affairs Minister urging local governments to collaborate on effective and transparent programme management to combat poverty.

Navy Major Faces 5-Year Prison Sentence and Dishonourable Discharge for Drug Smuggling on Military Aircraft

A military prosecutor has demanded a five-year prison sentence and a dishonourable discharge for a Navy Major accused of using a military aircraft to smuggle methamphetamine. The defendant, Mayor Laut Faisal, was tried at the Medan High Military Court. The prosecutor cited the abuse of military facilities as an aggravating factor in the case.

Book on Sri Sultan Hamengku Bawono IX's Thoughts, Works, and Example Launched

A book detailing the thoughts, works, and exemplary leadership of Sri Sultan Hamengku Bawono IX was launched at the National Library in Jakarta. The Governor of Yogyakarta, Sri Sultan Hamengku Bawono X, highlighted his father's teachings that true leadership is a responsibility, not a privilege. The event was attended by several high-ranking officials, including the Minister of Primary and Secondary Education.

Prabowo highlights RI's investment realization Rp1,931 trillion

President Prabowo Subianto announced that Indonesia's investment realisation reached Rp1,931 trillion in 2025, creating over 2.7 million jobs, signalling economic resilience amid global uncertainty. He further noted that first-half 2026 investment had already hit Rp1,010 trillion, with economic growth accelerating to 5.45 per cent, the highest in 13 years. The president expressed confidence that sensible policies could push full-year growth to 6 per cent.

Prabowo touts government’s early wins in state address, says Indonesia could hit 6% growth by this year

President Prabowo Subianto used his second state address to highlight his administration's early achievements, including food self-sufficiency and a halt to diesel imports, while projecting economic growth could reach 6% this year. He detailed the implementation of 121 transformative policies and key programmes like the Red-White village cooperatives, but acknowledged that not all national problems have been solved. The president also confirmed that the state export firm Danantara Sumber Daya Indonesia will be fully operational by September.

Jakarta Public Transport Tariff Set at Rp 8 for Independence Day

The Jakarta provincial government and KAI have set a special public transport tariff of Rp 8 for 17 August 2026 to celebrate Indonesia's 81st Independence Day. The flat fare applies to KRL Commuter Line, LRT Jabodebek, and other services, following coordination between central and regional authorities. Commuters have welcomed the initiative, though some have called for more frequent discounts and integrated pricing across all modes.

Prabowo Vows to Eradicate Corrupt and Inefficient Bureaucracy

President Prabowo Subianto has strongly criticised Indonesia's convoluted bureaucracy, stating it should serve the public rather than hinder them. He called for the eradication of officials who abuse their positions for personal or group enrichment. The President stressed that bureaucratic reform must be implemented from the central government down to the regional level to ensure public services are fast, simple, and citizen-oriented.

Prabowo Stunned by 1,074 State-Owned Enterprises, Threatens to Investigate Past Directors

President Prabowo Subianto expressed astonishment at the sheer number of state-owned enterprises (BUMN), which he said totals 1,074 including subsidiaries, and accused some of acting irresponsibly. He warned that he may investigate the management of these companies going back 30 years. However, he also offered the possibility of a special amnesty for those who admit their mistakes and commit to reform.

Gibran's 'Tree Hole Bottom' Suit at MPR Annual Session: A Modern Leadership Statement

Vice President Gibran Rakabuming Raka's choice of a dark blue 'tree hole bottom' suit at the 2026 MPR Annual Session has been interpreted as a deliberate statement of modern yet culturally rooted leadership. Fashion observer Lisa Fitria noted the ensemble projected calm, professionalism, and approachability, while the traditional black cap signified a commitment to Indonesian identity. The appearance has sparked discussion about the evolution of Indonesian state attire, blending global modernity with national DNA.

Free Nutritious Meals Programme: Teachers Should Not Be the Last Line of Food Safety Defence

The Free Nutritious Meals (MBG) programme must not rely on teachers as food tasters to guarantee safety. Instead, the government should strengthen the HACCP-based food safety control system throughout the entire supply chain, positioning teachers as service supervisors and early detection monitors rather than the final defence against contamination.

Prabowo: Foreign Language Education to Start from First Grade of Primary School

President Prabowo Subianto has announced that foreign language education will be introduced from the first grade of primary school, deeming language skills essential for Indonesian children. He highlighted the importance of English, Mandarin, Arabic, Japanese, Korean, Spanish, and French. The government is also continuing a major school renovation programme, targeting 100,000 schools next year and aiming to complete all renovations by 2029.

President Prabowo: Ride-Hailing Drivers' Income Share Rises to 92% After Government Recommendation

President Prabowo Subianto has announced that the income share for online motorcycle taxi drivers has increased from 80 to 92 per cent following a government recommendation to platform operators. The policy aims to ensure drivers receive a fairer portion of their earnings. The President noted that many drivers have reported significant income increases, with some claiming their earnings have doubled or even tripled.

Netherlands Ready to Assist Indonesia in Achieving Food Security Ambitions

The Dutch Ambassador to Indonesia, Marc Gerritsen, has expressed confidence in President Prabowo Subianto's vision for national food security, while acknowledging the challenges that remain. He affirmed that the Netherlands is well-positioned to assist Indonesia in realising its ambitions, particularly given the strong bilateral relationship. The ambassador's remarks were made following the President's state address at the annual parliamentary session in Jakarta.

Government Has Not Discussed Ad Hoc Court for Past 30 Years of SOE Mismanagement

The Indonesian government has not yet discussed the formation of an ad hoc court to investigate alleged mismanagement by state-owned enterprise (SOE) directors over the past 30 years. Minister of Law Supratman Andi Agtas clarified that President Prabowo's remarks on the matter were a general example within the context of corruption prevention and eradication. The minister emphasised that existing judicial institutions are sufficient, and the primary focus remains on strengthening prevention through digital governance.

President Prabowo Targets 30,000 Village Cooperatives to Operate Optimally by End of 2026

President Prabowo Subianto has set an ambitious target for 30,000 village cooperatives to be fully operational by the end of 2026, as part of a strategy to strengthen the grassroots economy. Currently, 10,000 cooperatives are running, with 3,300 operating optimally, equipped with digital stock monitoring, transport, and the capacity to purchase local produce. The President stressed that setting high targets is essential to drive maximum effort and prevent agricultural waste due to market access issues.

Prabowo Details BUMN Reform Achievements: 290 Companies Closed, Profits Surge to Rp326 Trillion

President Prabowo Subianto has announced sweeping reforms of Indonesia's state-owned enterprises (BUMN), including the closure of 290 unproductive companies and a 75.3 per cent surge in combined profits to Rp326 trillion. The restructuring, described as potentially the largest in the world, has yielded overhead savings of over Rp50 trillion, which will be redirected towards public services. Key highlights include a nine-fold profit increase at PT Timah and the reactivation of 20 Garuda Indonesia aircraft.

Jokowi Gives Thumbs Up to Prabowo After State Address

President Prabowo Subianto received a thumbs up from his predecessor Joko Widodo following his state address at the MPR Annual Session. The two former rivals shared a brief, warm exchange and laughter after the speech. Prabowo also used the address to declare his commitment to working tirelessly for the nation, stating his calendar has no public holidays.

Prabowo: Sekolah Rakyat to Break the Cycle of Poverty

President Prabowo Subianto has highlighted the Sekolah Rakyat programme as a key strategy to break the cycle of poverty, providing boarding schools for children from the most disadvantaged families. He emphasised the state's constitutional duty to care for the poor and abandoned, asserting that a family's economic condition should not determine a child's future. The President shared success stories of students who, after joining the programme, have overcome illiteracy and achieved national accolades in academics and sports.

Police Investigate Man Spotted with Toy Gun in Ciputat

Authorities in South Tangerang are investigating a man who was filmed behaving suspiciously while carrying what appeared to be a pistol in Ciputat. Local traders reported the man often loiters in the area and speaks incoherently, leading residents to believe he may be mentally unwell. Police have confirmed the weapon was a green plastic toy gun.

DPR Commission IV Chair Applauds Rice and Maize Self-Sufficiency, Urges Focus on Garlic, Soybeans, and Meat

Titiek Soeharto, Chair of Indonesia's House of Representatives Commission IV, has praised the government's achievement of rice and maize self-sufficiency. She highlighted that the next challenges are achieving self-sufficiency in garlic, soybeans, and meat. President Prabowo Subianto earlier announced that Indonesia has reached self-sufficiency in eight food commodities.

DPD Supports Prolegnas Bills Aligned with Green Legislation Concept

The Speaker of the Regional Representative Council (DPD) has expressed support for several bills in the 2026 National Legislation Programme, stating they align with the council's 'Green Democracy' concept. The initiative aims to balance political development with social, economic, and ecological sustainability to prevent ecological debt for future generations. Key bills include those on archipelagic regions, climate change management, and indigenous communities.

Prabowo highlights RI's investment realization Rp1,931 trillion

President Prabowo Subianto announced that Indonesia's investment realization reached Rp1,931 trillion in 2025, creating over 2.7 million jobs, and highlighted the country's economic resilience amid global uncertainty. He noted that first-half 2026 investment reached Rp1,010 trillion with economic growth hitting 5.45 percent, the highest in 13 years. The president expressed confidence that rational policies could push full-year growth to 6 percent.

BNN Reveals Kampung Bahari Drug Lords Armed with Illegal Firearms to Resist Raids

The National Narcotics Agency (BNN) has disclosed that major drug traffickers in Jakarta's Kampung Bahari have armed themselves with illegal firearms to resist law enforcement operations. The revelation follows the arrest of a key figure, known as 'Bos Gendut', who led officers to a cache of weapons and narcotics. Authorities also seized billions of rupiah in cash and assets as part of a money laundering investigation linked to the syndicate.

One Dead, 13 Injured as Umrah Pilgrims' Bus Crashes in Bandung Regency

A bus carrying a group of Umrah pilgrims crashed into a house wall on Jalan Raya Nagreg, Bandung Regency, early Friday morning, killing one passenger and injuring 13 others. The driver reportedly lost concentration on a downhill stretch, causing the vehicle to veer off the road. Rescue teams successfully evacuated a trapped passenger before concluding the operation.

Minister Supratman Welcomes MK Ruling: Only President Can Report Defamation

Minister of Law Supratman Andi Agtas has welcomed the Constitutional Court's ruling that defamation charges against the president or vice president can only be pursued based on a direct complaint from the head of state themselves. The minister stated that the decision provides stronger legal certainty and prevents misinterpretation or third-party reporting in the name of the president. The ruling clarifies the legal standing required to process alleged violations of the relevant articles in the new Criminal Code.

Prabowo: Inefficient, Corrupt Bureaucracy Destroys a Nation

President Prabowo Subianto has launched a scathing critique of Indonesia's bureaucracy, labelling inefficiency and corruption as major obstacles to national development. Speaking at the Annual Session of the MPR, he urged officials to stop using their positions for personal or group gain and to simplify regulations that hinder public welfare. The President specifically highlighted how complex rules prevent farmers from accessing fertiliser and cause grain prices to collapse.

SK Hynix Workers Form New Union Amid Heated Bonus Dispute

Workers at South Korean chip giant SK Hynix have launched a new, unified labour union to strengthen their bargaining power during annual wage negotiations. The move comes as the company posts record profits driven by AI demand, with the primary dispute centring on management's proposal to pay bonuses in shares rather than cash. The new union aims to become the majority representative, intensifying the fight for control over compensation talks.

Bali Governor Warns of Disappearing Rice Fields and Coastal Abrasion

Bali Governor Koster has raised concerns about the loss of rice fields in southern Bali, where land certificates exist but the physical fields have been replaced by water. He also highlighted the ongoing threat of coastal abrasion and urged serious attention to climate management to mitigate negative impacts.

Jokowi Gives Thumbs Up After Prabowo's 115-Minute Parliamentary Address

Former President Joko Widodo showed his appreciation with a thumbs up after President Prabowo Subianto delivered a marathon 115-minute state address at the 2026 Annual Session of the MPR. The gesture occurred as Prabowo greeted former leaders on the honour stage following his speech. During the address, Prabowo detailed his administration's strategic programmes, including the free nutritious meal initiative and rural economic development.

Government Awaits DPR Initiative on Asset Forfeiture Bill

Minister of Law Supratman Andi Agtas has stated that the government is ready to discuss the Asset Forfeiture Bill once the House of Representatives (DPR) formally proposes it as an initiative. The minister noted that President Prabowo Subianto has given clear instructions to expedite the bill. The DPR is currently conducting public consultations, and the government is awaiting their formal submission before commenting on the substance.

President Prabowo: BUMN Dividends Surge 67% to Rp 142.3 Trillion in 2025

President Prabowo Subianto has announced that improved governance of state-owned enterprises (BUMN) has led to a 67 per cent increase in dividend payments, reaching Rp 142.3 trillion in 2025. The president highlighted that the combined profit of BUMN rose to Rp 326 trillion, attributing the success to transparent and sound management. He also indicated that these profits would be used to accelerate downstream industrialisation efforts.

Minister: Presidential Regulation on Online Motorcycle Taxis Ready for Signing

The Indonesian government has completed ministerial-level discussions on a presidential regulation governing the digital transport ecosystem, which will grant online motorcycle taxi drivers micro-business status. The regulation is expected to be announced soon, pending President Prabowo Subianto's signature. The policy aims to provide economic benefits and ensure the sustainability of the online transport sector.

Chinese Delegation Visits Indonesia to Strengthen Bilateral Friendship

A Chinese delegation led by an official named Yang visited Indonesia to promote friendship between the two nations. The visit included a China-Indonesia local government dialogue and meetings with Indonesian foreign ministry officials and regional leaders. Both sides agreed to implement the consensus reached by their leaders and to advance pragmatic cooperation and youth exchanges.

DPR Deputy Speaker Appreciates Prabowo's Launch of National Electric Motorcycle

Deputy Speaker of the Indonesian House of Representatives, Sari Yuliati, has praised President Prabowo Subianto's launch of a national electric motorcycle, calling it a strategic move to strengthen industrial independence. She emphasised that the initiative goes beyond vehicle production to encompass building a comprehensive ecosystem, from research to manufacturing. Yuliati urged the government to maintain policy consistency to ensure the domestic automotive and energy industries can grow and compete.

US Navy to Rotate Aircraft Carriers in Middle East Amid Concerns Over Crew Welfare

The United States is preparing to replace the USS Abraham Lincoln with the USS George Washington in the Middle East as concerns mount over the psychological strain and living conditions of the crew. Reports of food shortages, plumbing issues, and the mental toll of a record-breaking 200 consecutive days at sea have prompted Congressional scrutiny. Pentagon officials maintain that the rotation was pre-planned and that the US can sustain its naval blockade of Iranian ports indefinitely.

Public Transport Tariffs Slashed to Rp8 for Indonesia's 81st Independence Day

Several public transport operators in Jakarta and surrounding areas are offering a special flat fare of Rp8 on 17 August 2026 to celebrate Indonesia's 81st Independence Day. The promotion applies to KRL Commuter Line, LRT Jabodebek, TransJakarta, MRT Jakarta, and LRT Jakarta services. Passengers can access the discounted rates by using designated electronic money cards or specific mobile applications.

Yunnan and Bali Launch Third Phase of 'Yunnan Hand in Hand' Cooperation Programme

Yunnan Province in China and the Indonesian island of Bali have launched the third phase of their 'Yunnan Hand in Hand' cooperation programme, expanding their partnership into green energy. The initiative, which builds on two decades of sister-city relations, now includes solar-powered street lighting and additional organic rice paddies, integrating agriculture, eco-tourism, and renewable energy. Officials from both regions hailed the project as a tangible benefit of their long-standing friendship, aligning with Bali's sustainable development goals.

MPR Speaker: Indonesian Children Must Be Educated with Integrity, Not Just Intelligence

MPR Speaker Ahmad Muzani stressed that Indonesian children must be educated to become agents of change with integrity, not merely to be clever or competitive. He highlighted the importance of mastering technology without losing humanity and pursuing economic growth without sacrificing the environment. The remarks were made during the Annual Session of the MPR and the Joint Session of the DPR-DPD in Jakarta.

Minister Supratman: Prabowo Calls Corruption a National Enemy, Not Just a Government Foe

Minister of Law Supratman Andi Agtas has conveyed President Prabowo Subianto's strong commitment to eradicating corruption, labelling it a 'national enemy'. Supratman stressed that beyond punitive measures, good governance and a digital-based government system are essential to combat graft. He noted that the President is also preparing regulations to create a stronger deterrent effect against corruption.

President Prabowo: Foreign Language Learning to Start from First Grade of Primary School

President Prabowo Subianto has announced that foreign language instruction will begin from the first year of primary school to boost national competitiveness. He emphasised that children learn languages faster before the age of 12 and named English, Mandarin, Arabic, and Russian among the key languages to be taught. The policy aims to equip Indonesian children with skills for the international job market.

KPK Investigates Alleged Bribes to Railway Project Official Reza Maullana Maghribi

The Corruption Eradication Commission (KPK) is investigating alleged bribe payments to Reza Maullana Maghribi, a commitment-making official for railway projects in East Java. He is a suspect in a major graft case involving construction and maintenance projects under the Directorate General of Railways. The investigation has already led to the naming of 22 individual suspects, including a former member of the House of Representatives, and two corporations.

Cianjur BPBD warns fishermen of waves up to five metres high

The Cianjur Regency Disaster Management Agency (BPBD) has urged fishermen to temporarily cease maritime activities as high waves reaching up to five metres batter the southern coast. The extreme weather, predicted to last for the next three days, has prompted the deployment of officers and volunteers to monitor the coastline. Wind speeds in the region are expected to reach up to 25 knots, posing a significant threat to safety.

Attorney General's Office Asks Court to Dismiss Lodewyk Pusung's Pretrial Motion

The Attorney General's Office (Kejagung) has requested the Central Jakarta District Court to dismiss a pretrial motion filed by former Deputy Head of the National Nutrition Agency (BGN), Lodewyk Pusung. The Kejagung argued that the motion's arguments pertain to the main case material and are therefore beyond the pretrial court's authority. This latest motion challenges the legality of forced seizure efforts in the free nutritious meal (MBG) governance case.

MPR Speaker Muzani: True Victory Does Not Humiliate Others

Speaker of the People's Consultative Assembly (MPR) Ahmad Muzani has called for political differences not to be used to divide the nation, emphasising that true victory is achieved without humiliating opponents. He stressed that national unity must be maintained through justice, exemplary conduct, and dialogue, rather than by suppressing dissent. The remarks were made during the Annual Session of the MPR and the Joint Session of the DPR and DPD ahead of Indonesia's 81st Independence Day.

Prabowo Promises 0% Down Payment and Low Interest for Electric Motorcycles, Will Ride-Hailing Drivers Flock to Buy?

President Prabowo has announced plans to offer zero down payment and reduced interest rates on loans for electric motorcycles, a move aimed at boosting adoption. Industry leaders believe ride-hailing drivers could be the primary beneficiaries, though they caution that implementation will require detailed coordination between ministries and financing institutions. The scheme is part of broader government incentives managed by BPI Danantara to stimulate the electric vehicle industry.

Minister Clarifies Prabowo's Call for Ad Hoc Court on SOEs Was General Anti-Corruption Warning

Law Minister Supratman Andi Agtas has clarified that President Prabowo Subianto's proposal for an ad hoc court to investigate state-owned enterprises (SOEs) over the past 30 years was a general warning against corruption. The minister emphasised the president's focus on prevention through digital governance and good bureaucracy. No specific study or plan for such a court has been initiated, but the government stands ready if instructed.

Prabowo pushes for stronger connectivity to advance village economy

President Prabowo Subianto has emphasised that Indonesia's economic strength lies in its villages, highlighting the resilience of small businesses and rural economies during the 1998 crisis. He announced the completion of over 3,300 village bridges by the military and police in 2026, with a target of more than 5,000 by year-end. The government is also expanding access to clean water points to support rural communities.

Bromo Fire Subsides, Burned Area Reaches 1,120 Hectares

The forest and land fire in the Mount Bromo area has subsided, with no more hotspots detected as of Friday afternoon. However, authorities continue to monitor and conduct water bombing operations to prevent reignition. The total area burned within the Bromo Tengger Semeru National Park is estimated at 1,120 hectares, though no casualties have been reported.