Indonesian Political, Business & Finance News

Archive: 14 August 2026

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Video: Prabowo Presents Government Performance Ahead of 81st Independence Day

President Prabowo Subianto delivered a state address at the annual MPR and joint DPR-DPD session in Jakarta on Friday. The speech, held ahead of Indonesia's 81st Independence Day, included a report on the performance of state institutions. The event was broadcast as part of CNBC Indonesia's coverage of the state address.

From Fish Seller to Presidential Guest: The Story of Risky Pratama

Muhammad Risky Pratama, a boy from Medan who once dropped out of school to sell fish and support his grandmother, was an honoured guest of President Prabowo at the Annual Session. His journey from peddling 30 kilograms of fish by bicycle at age nine to returning to education highlights the impact of government-backed school outreach programmes. The story underscores a broader commitment to reintegrating vulnerable children into the education system.

Police Uncover Online Gambling Ring Using Mobile Phone Credit for Deposits Worth Rp890 Billion

Indonesian police have dismantled an international online gambling syndicate that used mobile phone credit as a deposit method, with transactions exceeding Rp890 billion. Nine suspects have been named in connection with the operation, which used a website called Ujangbet hosted on servers in Cambodia. The scheme involved converting player phone credit into cash through a network of distributors in Batam, Medan, and Pekanbaru, allegedly to launder the proceeds.

Dasco: Dual Citizenship to Bring Home Diaspora

House Deputy Speaker Sufmi Dasco Ahmad has responded to President Prabowo Subianto's proposal for limited dual citizenship, stating it could enable the Indonesian diaspora to contribute to the nation. Dasco noted the policy would be broader than existing naturalisation processes for foreign athletes and would be implemented on a highly selective basis. The government aims to facilitate citizenship for overseas Indonesians without requiring them to renounce their original nationality.

The Jobless Boom Phenomenon: Economy Grows Rapidly While Jobs Shrink

A recent poll by Stripe CEO Patrick Collison reveals a growing expectation of a 'jobless boom', where economic growth accelerates but employment declines. This trend, driven by AI-driven productivity gains, is reflected in strong corporate earnings and stock market highs, even as US payrolls shrink and wage growth stalls.

Activist Group Urges 17 August Not Be Turned into Political Stage

The 98 Resolution Network has called for the 17 August Independence Day commemoration to be kept free from political exploitation, warning against using the upcoming anniversary of activist Affan Kurniawan's death to provoke unrest. The group emphasised that the family has rejected any politicisation of the tragedy and urged the public to focus on national unity. They also reminded the government to maintain open dialogue and for citizens to express aspirations responsibly.

Prabowo Reveals the Location and Institutional Structure of the Indonesian International Financial Center

President Prabowo Subianto has announced that the new Indonesian International Financial Center (PFII) will initially be based in Jakarta, with future expansion planned for Bali and other regions. The centre will feature a comprehensive institutional structure including a supervisory body and a dedicated court, aiming to attract global capital by offering legal certainty, tax incentives, and the use of English in contracts. The government intends for the PFII to become a hub for banking, fintech, and investment management while maintaining strict compliance with anti-money laundering and tax transparency rules.

Here Are 21 Parking Locations Around Monas for the 81st Indonesian Independence Day Celebration

The Jakarta Transportation Agency has prepared 21 parking locations with a total capacity of 20,578 spaces to support the 81st Independence Day celebrations on 17 August 2026. The parking areas are spread from the National Monument (Monas) area to Dukuh Atas to accommodate attendees of the flag ceremony, parade, and evening carnival. Authorities have urged the public to follow traffic management measures and officer instructions during the event.

76 Garuda Bridges Connect 142 Villages Across Three Papua Provinces

A total of 76 'Garuda Bridges' have been constructed across three provinces in Indonesian Papua, significantly improving access for over 133,000 residents. The military-led infrastructure project aims to connect 142 remote villages to essential services such as education, healthcare, and economic centres. The initiative is part of a broader national programme, with President Prabowo targeting the completion of over 5,000 village bridges by the end of 2026.

Tax and customs target in 2027 Draft State Budget reaches Rp2,908 trillion

Finance Minister Purbaya Yudhi Sadewa has announced that the tax and customs revenue target in the 2027 Draft State Budget (RAPBN) is set at Rp2,908 trillion, marking a 10.5 per cent increase from the 2026 outlook. The government aims to achieve this growth primarily through improved tax compliance and an expanded tax base. Overall state revenue is targeted at Rp3,426 trillion, while expenditure is planned at Rp4,097.2 trillion, resulting in a budget deficit of 2.40 per cent of GDP.

Police Uncover Ujangbet Gambling Syndicate's Modus Operandi: Disguising Transactions via Mobile Credit Deposits

Indonesia's National Police Criminal Investigation Unit (Bareskrim) has dismantled an international online gambling network operating the 'Ujangbet' site, which used mobile phone credit deposits to launder money. The syndicate, whose servers are based in Cambodia, reportedly turned over Rp 890 billion in a year by selling the deposited credit below market value. Nine suspects have been arrested across multiple Indonesian cities, marking the first case of its kind uncovered by authorities.

LKPP Chief Reveals Strategies to Accelerate Goods and Services Procurement by 2027

The Head of Indonesia's Public Procurement Agency (LKPP), Sarah Sadiqa, has outlined key strategies to speed up government procurement for the 2027 fiscal year, focusing on consolidation and early tendering. The consolidation approach has already yielded significant efficiency gains, saving up to 54.88% for central government spending and 20-23% for regional budgets in 2025. The initiative also aims to boost local SMEs and domestic production, aligning with the President's directive for supply chain independence.

Indonesia Faces Doctor Shortage, Prabowo Opens New Medical Schools and Considers Foreign Physicians

President Prabowo Subianto has revealed a significant shortfall of medical professionals in Indonesia, with a deficit of over 84,000 general practitioners and 55,000 specialists. To address this, the government is establishing nine new medical faculties and 170 specialist study programmes. The president also proposed inviting foreign doctors to practice on a limited-term basis to bridge the gap while local training capacity is expanded.

Accompanied by Titiek Soeharto, Students with Disabilities Beam Upon Entering Yogyakarta Presidential Palace

Around 100 students with disabilities from special schools in Yogyakarta visited the Gedung Agung Presidential Palace as part of the 'Istana Untuk Rakyat' programme. The visit, facilitated by the Diwa Foundation, was hailed as a historic moment, granting the students rare access to the landmark. Organisers emphasised the importance of inclusion and ensuring children with disabilities have equal opportunities to experience national heritage sites.

Indonesia's women's hockey team has more open chances at 2026 Asian Games

The Indonesian Hockey Federation believes the women's field hockey team has a stronger chance of achieving a top-five finish at the Aichi-Nagoya 2026 Asian Games, despite being drawn alongside India and Japan. The team is targeting a top-six finish and has been preparing for eight months, including training in Darwin and matches in Malaysia. Officials point to a previous victory over Thailand as evidence of the squad's competitive potential.

Sumatran Elephant Calf Dies Suddenly in Aceh, Forestry Ministry on Alert for EEHV

A Sumatran elephant calf named Yuna died suddenly at a conservation centre in Aceh, with initial diagnosis pointing to the Elephant Endotheliotropic Herpesvirus (EEHV). The calf's health deteriorated rapidly, prompting the Aceh Natural Resources Conservation Agency (BKSDA) to increase monitoring of other young elephants. Laboratory tests are underway to confirm the cause of death and prevent further spread among the vulnerable population.

Ternate SAR Evacuates 142 Passengers from Ship Aground in Oba, North Maluku

The Ternate Search and Rescue Office successfully evacuated all 142 passengers from the KM Bunda Maria after the vessel ran aground in the waters off Oba, Tidore Islands. The ship had struck land after departing from Ternate en route to Babang Port. All passengers were returned safely to Ternate, and no casualties or missing persons were reported.

Customer Trust Powers Prodia to 'Excellent' Accolade at Indonesia Original Brand 2026

PT Prodia Widyahusada Tbk (Prodia) has secured the 'Excellent' predicate in the Clinical Laboratory category at the Indonesia Original Brand 2026 awards. The recognition, based on a survey of over 5,000 respondents, reflects high levels of customer satisfaction, loyalty, and advocacy. Prodia views the award as motivation to continue innovating and delivering quality diagnostic services in Indonesia.

OJK Prepares Two Regulations Ahead of Mineral Exchange Launch in 2027

Indonesia's Financial Services Authority (OJK) is drafting two key regulations to govern the transition and operation of the new Mineral and Strategic Commodities Exchange (BMKS), set to launch on 1 January 2027. The exchange aims to deepen the domestic market and establish a transparent price reference for minerals and strategic commodities, reducing practices like transfer pricing and under-invoicing. The specific commodities to be traded will be determined by a forthcoming Presidential Regulation.

Education Minister: School Renovation Programme to Prioritise Severely Damaged Buildings

Minister of Primary and Secondary Education Abdul Mu'ti has stated that the government's school renovation programme will prioritise buildings with severe damage. The initiative follows President Prabowo Subianto's announcement of a target to renovate 100,000 schools next year. The programme will also cover moderately damaged schools and those in underdeveloped, frontier, and outermost (3T) regions.

Prabowo Introduces DDMF, Outlines Objectives for Sovereign Wealth Fund

President Prabowo Subianto has introduced the Danantara Development Management Fund (DDMF) as Indonesia's sovereign wealth fund, designed to finance long-term strategic projects. He stated the fund will support initiatives like a national car and a Giant Sea Wall that cannot be covered by short-term commercial investment or the state budget. The DDMF is intended to build national capacity for decades to come through disciplined and professional investment.

Sardines vs Salmon: Which Has Higher Omega-3 Content? Here's What a Doctor Says

A medical expert reveals that sardines may actually contain higher concentrations of omega-3 fatty acids than salmon, particularly DHA. While both fish offer significant health benefits, sardines present a more economical option. The method of preparation, however, significantly impacts the final omega-3 content.

Goldenbird expands digital reservation access for vehicle rental

Goldenbird, the premium vehicle rental service under PT Blue Bird Tbk, is broadening its digital booking channels to align with evolving customer habits. The expansion introduces two main digital platforms, the MyBluebird app and a web reservation system, offering greater flexibility in fleet selection and payment methods. The move aims to provide a more integrated and accessible experience for both domestic users and international tourists.

Indonesia's Foreign Reserves Hit US$145.3 Billion in July 2026, Airlangga Says External Buffer Secure

Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed Indonesia's external position remains secure, with foreign exchange reserves reaching US$145.3 billion in July 2026, sufficient to cover 5.5 months of imports. The announcement came alongside projections of a stable 5.0–5.2 per cent growth rate for 2026 from international bodies, while the government targets a more ambitious 6 per cent growth in 2027. The strong reserve position is supported by a cumulative trade surplus of US$3.58 billion in the first half of 2026 and a recent strengthening of the rupiah.

Free Nutritious Meal Programme Budget to Be Separated from Education Budget Starting 2028

The Indonesian government will begin separating the budget for the Free Nutritious Meal (MBG) programme from the national education budget in 2028, following a Constitutional Court ruling. Minister of Primary and Secondary Education Abdul Mu'ti confirmed the change after inter-ministerial meetings, stating that only components unrelated to students would be removed from the education budget. The move complies with the court's decision, which mandated the separation within two years of its July 2026 ruling.

PAN Faction Leader Praises Prabowo's Speech as Affirming Nation's Direction of Progress

Putri Zulkifli Hasan, Chair of the PAN Faction in the Indonesian House of Representatives, has lauded President Prabowo Subianto's state address for providing clear direction and fostering optimism. She highlighted the government's economic achievements, including the highest growth in 13 years, and the success of food self-sufficiency as a foundation for national sovereignty. The PAN politician also welcomed the President's honesty in acknowledging unresolved issues and called for national unity ahead of the 81st Independence Day.

Golkar Secretary-General Reveals Content of Coalition Meeting: 'There Was Political Chatter'

Secretary-General of Golkar, Muhammad Sarmuji, disclosed that a recent gathering of coalition party secretaries-general was primarily a casual social event, though it included light political discussion. The meeting, hosted by Gerindra's Sugiono, served as a moment for national reflection ahead of Independence Day and a review of nearly two years under President Prabowo Subianto's administration. Attendees from the broad 'Indonesia Maju' coalition emphasised the importance of maintaining political communication to support the government.

TNI-Polri Tighten Security Ahead of 81st Independence Day in Papua

Security forces in Papua are intensifying their presence and coordination ahead of Indonesia's 81st Independence Day celebrations. The military has deployed additional troops to strategic locations based on prior incidents and current threat assessments. The Pangdam called on the public to celebrate the day without fear.

Hexagon Market targeted as continuation tourist destination from Kota Tua

The North Jakarta Culture Agency is aiming to revitalise Hexagon Market as a tourist destination that extends the journey from the historic Kota Tua area. The market is positioned along a heritage trail connecting the Old Town, the Maritime Museum, and Luar Batang Mosque. A market event in August 2026 will feature 53 MSMEs to boost the local creative economy and cultural ecosystem.

Lamongan Regency Strengthens Support for National Food Self-Sufficiency

The Lamongan Regency government in East Java has reaffirmed its commitment to supporting the central government's priority programme on national food self-sufficiency. Bupati Yuhronur Efendi highlighted Lamongan's role as a national food barn, with rice production reaching approximately 904,928 tonnes in 2025. The region is accelerating efforts through expanded planting areas, irrigation rehabilitation, and farmer support to bolster national food security.

President Appreciates Agriculture Minister Amran, Gotong Royong Drives Indonesia's Self-Sufficiency

President Prabowo Subianto has praised Agriculture Minister Andi Amran Sulaiman and his team for achieving national food self-sufficiency in just one year, far ahead of the original four-year target. The success, covering eight strategic commodities including rice and corn, was attributed to sweeping deregulation, particularly the simplification of 145 fertiliser distribution rules into a single presidential regulation. The President emphasised that the achievement, recognised globally, was built on a spirit of gotong royong involving ministries, local governments, the military, police, and farmers.

Coordinating Minister Zulhas: Red and White Village Cooperatives on Mountains to Be Regulated

Coordinating Minister for Food Zulkifli Hasan has stated that Red and White Village Cooperative (Kopdes Merah Putih) buildings located in inappropriate areas, such as on mountains, will be regulated before they can operate. The government aims to have 35,000 buildings completed by the end of August, with operations commencing in September 2026. These cooperatives are intended to serve as government-owned assets and offtakers for farmers' and fishermen's produce.

Education Ministry Gets Rp61 T for 2027, Including Teacher Studio Programme

Indonesia's Ministry of Primary and Secondary Education has been allocated a budget of Rp61.1 trillion for the 2027 fiscal year. The funds will support various national priority programmes, including a Rp40 billion initiative to build teacher studios and Rp14.9 trillion to improve the welfare of non-civil servant teachers. The budget also covers digitalisation, school revitalisation, and scholarships aimed at improving educational quality and access.

Government records EV-hybrid car sales rise above 40 percent

Coordinating Minister for Economic Affairs Airlangga Hartarto reported a 33.3 percent year-on-year increase in overall automotive sales, with electric and hybrid vehicle sales surging by more than 40 percent. The growth aligns with a significant rise in electricity consumption at public charging stations, which reached 62.4 million kWh in the first half of 2026. The government is targeting 6 percent economic growth in 2027, supported by positive mobility and industrial activity indicators.

Sandiaga Uno's Initiative Drives Economic Independence, Opens Path for Business Expansion

A training programme initiated by Sandiaga Uno has empowered small business owners, particularly women, by providing new skills and boosting their confidence. Participants reported gaining valuable culinary techniques and emotional intelligence tools to help balance their dual roles as entrepreneurs and homemakers. The initiative aims to foster sustainable economic independence and encourage job creation at the local level.

US Loses 25 Percent of MQ-9 Reaper Drone Fleet in Iran War

The United States has reportedly lost 45 MQ-9 Reaper drones, approximately a quarter of its fleet, during the conflict with Iran. The losses, valued at over US$1.3 billion, are attributed to combat and communication failures, raising concerns about military readiness and emboldening Tehran in negotiations.

NasDem Applauds Prabowo's Move to Strengthen Judiciary: So Judges Won't 'Waver'

The NasDem Party has praised President Prabowo Subianto's commitment to strengthening the judiciary by significantly increasing judges' remuneration. The party's treasurer, Ahmad Sahroni, stated that improved welfare should ensure judges uphold integrity and remain impervious to external pressures. President Prabowo announced that junior judges' incomes have risen by 280 per cent, placing them above the ASEAN average.

Zulhas: Kopdes Merah Putih Built on Mountains Will Be Regulated

Coordinating Minister for Food Zulkifli Hasan has acknowledged that some Kopdes Merah Putih village cooperatives have been built in inappropriate locations, such as on mountains, and will be rectified. The government is pushing to complete 35,000 units by the end of August 2026 to serve as infrastructure and offtakers for subsidised goods. A further 30,000 to 35,000 cooperatives are targeted for completion next year.

BMKG NTB reports extreme drought lasting nearly three months in Bima

The Meteorology, Climatology and Geophysics Agency (BMKG) has recorded 84 consecutive days without rain in parts of Bima Regency, West Nusa Tenggara, triggering an extreme drought warning. Several sub-districts across the province have been placed on high alert as the dry season peaks, exacerbated by a very strong El Niño phenomenon. Residents have been urged to conserve water and remain vigilant against the heightened risk of forest and land fires.

President Prabowo's Social Assistance Digital Revolution: From 200 Days to Minutes

President Prabowo Subianto has highlighted a major digital transformation in Indonesia's social protection system, slashing the eligibility verification process for social assistance from up to 200 days to mere minutes. The programme has already been implemented in 153 districts across 38 provinces, registering over 3 million families towards a national target of 49 million. The initiative aims to enhance transparency, accuracy, and ease of access for citizens while eliminating repetitive data submission.

PTPN III and Unila Sign MoU to Develop Cassava for Bioethanol Industry

State-owned plantation company PTPN III has partnered with the University of Lampung to advance research and cultivation of cassava for bioethanol production. The collaboration aims to strengthen national food and energy security by developing high-yield cassava varieties without disrupting the sugar self-sufficiency programme. The initiative will leverage the university's National Cassava Center and explore the Mukibat grafting system to boost productivity.

Mataram Implements 4-Hour Consumption Rule for Free Nutritious Meals

The Mataram city government has mandated that all free nutritious meal (MBG) packages must include a consumption time label, with a strict four-hour limit after cooking. Schools are authorised to reject meals that exceed this timeframe to ensure food safety for students. The policy follows central government directives and aims to strengthen oversight by involving school committees and the public.

BPH Migas, Balikpapan City Government, and Pertamina Tackle Fuel Queues

The Downstream Oil and Gas Regulatory Agency (BPH Migas), the Balikpapan City Government, and PT Pertamina Patra Niaga are collaborating to add new Pertalite distribution points across several sub-districts. The initiative aims to alleviate persistent queues, particularly for motorcycles, at petrol stations in Balikpapan, East Kalimantan. Officials are working to expedite the technical preparations so the new outlets can serve the public as quickly as possible.

Commission XI Yet to Receive Assignment for BI Governor Fit and Proper Test, Says Misbakhun

The House of Representatives Commission XI has not yet been tasked with conducting the fit and proper test for the Bank Indonesia Governor candidate, as the presidential letter remains with the DPR leadership. Commission XI Chairman Mukhamad Misbakhun stated he will not proceed without directives from the House leadership. President Prabowo Subianto has nominated Destry Damayanti, currently the acting BI Governor, for the definitive post.

92:8 Revenue Split Rule Delivers Tangible Impact for Online Motorcycle Taxi Drivers

A new government regulation increasing the revenue share for online motorcycle taxi drivers to 92 per cent is being hailed as a significant policy shift that provides real economic benefits. The rule, introduced via Presidential Regulation No. 27 of 2026, reduces the maximum share for app companies to 8 per cent, upending a system where drivers previously relied solely on company-determined commission schemes. The drivers' association views the regulation as a crucial step towards legal certainty and stronger protection of their economic interests.

Three-Day 'Penawar Rindu' Sea Festival Enlivens Batam's Belakang Padang

The Belakang Padang sub-district government in Batam is hosting a three-day maritime festival to celebrate Indonesia's 81st Independence Day. The 'Penawar Rindu' Sea Festival features traditional and modern boat races, aiming to strengthen community bonds and promote coastal cultural tourism. The event highlights the deep connection between the local community and the sea, which is central to their livelihood and heritage.

Indonesia targets 6 percent economic growth in 2027, Prabowo says

President Prabowo Subianto has announced an ambitious economic growth target of 6 percent for 2027, up from the 5.4 percent target set for 2026, during his Annual Budget Speech. The 2027 Draft State Budget outlines increased state spending and revenue, alongside a reduced budget deficit of 2.40 percent of GDP. The government also aims to lower poverty and unemployment rates, supported by stronger economic expansion and effective fiscal management.

English to Become Compulsory Subject in Primary Schools from 2027

The Indonesian government has announced that English will become a mandatory subject for primary school students starting from Year 3 in 2027. Minister of Primary and Secondary Education Abdul Mu'ti clarified that while other foreign languages will be introduced, only English will be made compulsory. The move marks a shift from the current status of English as an optional subject at the primary level.

DSI Analyses 6,500 Export Transactions Worth US$14 Billion

PT Danantara Sumberdaya Indonesia (DSI) has analysed approximately 6,500 export transactions valued at US$14 billion since June 2026, according to Investment Minister Rosan Roeslani. The initiative integrates data across ministries to enhance transparency and combat under-invoicing and transfer pricing. Rosan noted the gap between declared and index prices has significantly narrowed since the monitoring began.

Fake Police Officer Steals Rp600,000 from Pedestrian in Bandung Using Drug Search as Modus Operandi

A man impersonating a police officer in Bandung stole Rp600,000 from a pedestrian after stopping him under the pretence of a narcotics search. The suspect, identified by the initial S, interrogated and frisked the victim on Jalan Sudirman before discreetly taking the cash from his wallet. Police have reported the incident and are investigating the case.