Indonesian Political, Business & Finance News

Archive: 18 August 2026

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Home Affairs Minister requests damage assessment of schools and places of worship in NTT

Home Affairs Minister Tito Karnavian has instructed local governments in East Nusa Tenggara to survey damage to schools and places of worship following the recent earthquake. The data will serve as the basis for central government intervention and ensure educational and spiritual needs are met. Tito cited the post-landslide response in Sumatra, where most of the 4,922 damaged schools have been rehabilitated.

Condition of Hiker Who Fell Near Mount Slamet Crater Still Unconfirmed

A 16-year-old hiker has been reported missing after falling into the crater area of Mount Slamet in Tegal Regency, Central Java. Search and rescue teams are conducting operations, though the victim's condition remains unconfirmed. Initial reports suggest the body was motionless, and rescuers are equipped for high-altitude evacuation and toxic gas protection.

Indonesia Brings Community-Based Environmental Management Practices to BRICS Forum

Indonesia presented several community-based environmental management practices at the BRICS Senior Officers Meeting 2026 in New Delhi, highlighting the importance of cooperation among developing nations in tackling climate change. The delegation showcased programmes such as ProKlim, waste banks, and peatland fire management, which combine policy, science, and local community participation. The meeting finalised a Joint Ministerial Statement to be adopted at the BRICS Environment Ministers Meeting.

Body Found at Lembar Port Not Yet Confirmed as KMP Putri Yasmin Victim

A body has been discovered floating at Lembar Port in West Lombok, but authorities have not yet confirmed whether it is linked to the KMP Putri Yasmin ferry fire. The remains have been taken to NTB Provincial Hospital in Mataram for identification. Four passengers from the burned ferry remain missing as search efforts continue.

Argentine People Mired in Debt Following President's Austerity Policies

Millions of Argentines are struggling with soaring debt arrears under President Javier Milei's austerity measures, with defaults tripling in the past year to their highest level in two decades. While Milei's policies have curbed inflation, cuts to subsidies and stagnant wages have pushed household finances to the brink. The president has refused to take responsibility, while banking officials argue the crisis stems from macroeconomic conditions rather than individual choices.

Rupiah Weakens to Rp17,862 per US Dollar, Pressured by Rising Oil Prices

The Indonesian rupiah weakened against the US dollar on Tuesday, closing at Rp17,862, as global oil prices surged following US President Donald Trump's refusal to extend a framework agreement with Iran. Analysts warn that oil prices above the state budget assumption of US$70 per barrel could widen Indonesia's fiscal deficit. Market participants are also awaiting the outcome of Bank Indonesia's Board of Governors meeting on 18-19 August 2026.

Aresha Daycare Carers on Trial: Fed Leftover Rice, Bound and Submerged Children

The first hearing of the Little Aresha Daycare abuse and neglect case in Yogyakarta has revealed systematic mistreatment of children, including binding them with cloth and feeding them leftover rice. Eleven carers face charges after prosecutors detailed a pattern of swaddling and tying children during naps and meals, alongside overcrowded and poorly ventilated classrooms. The alleged practices were reportedly ordered and supervised by the foundation's founder and head teacher.

Governor grateful as North Kalimantan industrial estate absorbs 11,000 workers on Indonesia's 81st anniversary

North Kalimantan Governor Zainal A Paliwang has expressed gratitude that the industrial estate in Tanah Kuning-Mangkupadi, Bulungan Regency, now employs 11,000 workers. The estate has also begun exporting and is supporting dozens of micro, small and medium enterprises. Investment realisation in the province reached Rp14 trillion in the first half of 2026, against a central government target of Rp30.55 trillion.

Born on 17 August, baby in Serang receives special name from Regent

A baby girl born on Indonesia's 81st Independence Day in Serang Regency, Banten, was given the name Rachma Agustina by Regent Ratu Rachmatuzakiyah. The Regent visited the family at Kramatwatu Community Health Centre and expressed hopes for the child's future. The Head of the Serang Health Office described the birth as an extraordinary blessing.

Government Prepares Rp195 Trillion for Food Security, How Much for Fertiliser?

The Indonesian government has increased its food security budget in the 2027 draft state budget to Rp195.3 trillion, up 2.3% from the 2026 outlook. The allocation prioritises agricultural intensification, infrastructure, and supply chain strengthening, with fertiliser subsidies raised to Rp48.2 trillion. The government is targeting 2.7 million hectares of rice fields and 100,000 hectares of new paddy fields in 2027.

Handcuffed, 9 Batam Casino Gambling Suspects Arrive at Bareskrim

Nine suspects in a casino gambling case at Nine Stage Lounge and Bar in Batam have been transferred to the National Police Criminal Investigation Agency (Bareskrim) in Jakarta for further examination. The suspects, seven men and two women, were among 197 people detained during a raid on 15 August. Police seized Rp 7.79 billion in cash and identified various roles including an owner, managers, cashiers, dealers and players, ten of whom were foreign nationals.

Female Sumatran Elephant Born on Indonesia's 81st Independence Day in South Sumatra

A female Sumatran elephant calf was born at the Elephant Conservation Centre in Padang Sugihan, South Sumatra, on 17 August, coinciding with Indonesia's 81st Independence Day. The Ministry of Forestry described the birth as a meaningful natural gift for the nation's protected wildlife conservation efforts. The calf, born to mother Lestari and father Gapula, is under intensive 24-hour monitoring by the South Sumatra BKSDA.

Kotamobagu Resident Impressed to Attend Indonesia's 81st Independence Day at the Palace

Chandra E Damopolii, a resident of Kotamobagu in North Sulawesi, expressed his delight at attending the 81st Independence Day ceremony at the Merdeka Palace in Jakarta. He also met Didit Hediprasetyo, son of President Prabowo Subianto, and publicly declared his support for Prabowo in the 2029 presidential election. Chandra said he would mobilise all his resources to help Prabowo win a second term.

Citilink resumes Palembang-Bandung flight route

Citilink Indonesia has resumed direct return flights between Palembang and Bandung, with the inaugural service departing on Tuesday carrying 131 passengers. The reopening is intended to strengthen connectivity between South Sumatra and West Java and to support economic, tourism, business, and education activity in both regions.

Unpatti partners with Unhas Faculty of Medicine to strengthen specialist doctor education

Universitas Pattimura (Unpatti) in Ambon is collaborating with Hasanuddin University's Faculty of Medicine to align curricula and clinical learning for its Specialist Doctor Education Programme (PPDS). The partnership aims to ensure the programme meets national standards before the new academic semester begins on 1 September 2026. The initiative is expected to produce competent specialist doctors to address the shortage in Maluku.

NTB High Prosecutor's Office examines witnesses in alleged Rp11 billion loan corruption

The Nusa Tenggara Barat High Prosecutor's Office is conducting a marathon examination of witnesses in its investigation into alleged corruption involving an Rp11 billion working capital loan extended to PT Carsten Group Indonesia in 2023. The loan was provided by a regional development bank owned by the NTB provincial government and operating under sharia principles. The case is linked to the financing of the MXGP 2023 event in Lombok, with the state audit board assisting in calculating potential state losses.

Vietnam to tighten UAV monitoring

Vietnam has ordered relevant agencies and local authorities to strengthen management and monitoring of unmanned aerial vehicles following incidents at Tan Son Nhat International Airport. The Ministry of National Defence has been tasked with requiring UAV owners to register their aircraft and ensure digital identification, electronic permits, and real-time flight monitoring by 2030. The ministry will also publish no-fly zones and restricted areas for UAVs.

Presidential Regulation on Online Motorcycle Taxis to Set Fares for Rides, Couriers, and Food Delivery

The Indonesian government is finalising a Presidential Regulation covering all services provided by online motorcycle taxi drivers, including passenger transport, courier services, and food delivery. The regulation will assign fare-setting authority to different ministries, with the Ministry of Communication and Digital Affairs overseeing goods and food delivery tariffs and the Ministry of Transportation handling passenger fares. Online transport operators will be placed under the supervision of the Ministry of SMEs.

Presidential Regulation on Online Motorcycle Taxis to Cover Fares for Rides, Couriers, and Food Delivery

The Indonesian government is finalising a presidential regulation that will govern all services provided by online motorcycle taxi (ojol) drivers, including passenger transport, courier services, and food delivery. Fares for goods and food delivery will be regulated by the Ministry of Communication and Digital Affairs, while passenger transport fares will fall under the Ministry of Transportation. Online transport operators will be overseen by the Ministry of SMEs.

Video: Gold ETF Attracts Interest, MI Boss Reveals Returns for Retail and Institutional Investors

The Indonesia Stock Exchange has officially launched a gold exchange traded fund (ETF) as an alternative gold-based investment instrument. Barkah Supriadi, Chief Investment Officer of PT Korea Investment Management Indonesia, believes the launch will boost the appeal of gold investment given Indonesia's large gold market potential. He highlights the flexibility and convenience of gold ETFs, which are backed by Electronic Gold Receipts held by bullion banks.

Former Factory Worker Becomes Space Tourist, Willing to Pay Rp7 Billion

Huang Xiaochi, a 73-year-old former factory worker from China, has been confirmed as a passenger on InterstellOr's CYZ1 commercial suborbital flight scheduled for 2028. The ticket costs approximately Rp7.04 billion (US$440,000), making him one of the first commercial space tourists in China. Huang's journey from quality control officer to vice president of engineering at Kelon has captured public attention.

Clean Water Crisis in West Java Worsens, 25 Regions Affected by Drought

The clean water crisis in West Java has expanded to 25 of the province's 27 regencies and cities, affecting over half a million residents. The Regional Disaster Management Agency (BPBD) reports that Bogor Regency is the worst-hit area, with more than 180,000 people struggling to access clean water. Cross-sector agencies have distributed over 11 million litres of water aid as coordination efforts continue to strengthen.

Central Java Police Prepare Trauma Healing Team for NTT Earthquake Victims

The Central Java Regional Police (Polda Jateng) has deployed a psychological support team to assist communities affected by the earthquake in East Nusa Tenggara. The three-person Trauma Healing Team will provide humanitarian counselling alongside previously dispatched relief supplies. Police officials emphasised that psychological recovery is an integral part of the emergency response.

Indonesian Embassy in Bogota showcases Nusantara cuisine at 81st Independence Day celebration

The Indonesian Embassy in Bogota, Colombia, used the 81st anniversary of Indonesia's independence to introduce a range of traditional Indonesian dishes to the local community. Around 250 Indonesian and Colombian citizens attended the event, which featured a flag ceremony, traditional games, and cultural performances. Ambassador Tatang Budie Utama Razak expressed hope that the celebration would serve as a diplomatic tool to strengthen ties between Indonesia and Colombia.

Temanggung receives additional 2.5 hectares of provincial land for Sekolah Rakyat

The Temanggung Regency Government has secured an additional 2.5 hectares of land from the Central Java Provincial Government to support the construction of a Sekolah Rakyat in Karanggedong, Ngadirejo. The additional land brings the total site to around 7.5 hectares, meeting the minimum requirement after student capacity nearly doubled to 2,260. The regency is now completing administrative and technical preparations ahead of the programme's planned launch in October.

BEM UI Hires 24 Kopaja Buses for Protest at Hotel Indonesia Roundabout, None Arrive as Drivers Allegedly Intimidated

Student protesters from the University of Indonesia's student executive body (BEM UI) claimed that all 24 Kopaja buses they had hired to transport demonstrators to a rally at the Hotel Indonesia roundabout failed to arrive because the drivers were intimidated. The field coordinator alleged that various institutions had contacted the drivers and threatened them with dismissal if they transported the protesters. The students linked the incident to broader concerns about freedom of expression and democratic participation in Indonesia.

Residents complain of volcanic ash from Anak Krakatau eruption

Residents of Tejang Village on Sebesi Island in South Lampung have been affected by volcanic ash from Mount Anak Krakatau for three consecutive days, with many suffering from breathing difficulties and eye irritation. Local officials report that the community is urgently requesting face masks to mitigate respiratory problems. The volcano recorded 20 eruptions in a single day on Monday, with ash columns reaching up to 400 metres above the summit.

Truck Drivers Object to Rp 30,000 Entry Fee at Pancatama Industrial Estate in Serang

Truck drivers operating in the Pancatama industrial estate in Serang, Banten, have voiced strong objections to newly imposed entry fees of Rp 15,000 for small trucks and Rp 30,000 for large trucks. Drivers argue the charges are excessive compared with other industrial estates, some of which offer free entry, and that the fees were introduced without prior consultation. The estate's management, PT Pancatama Sukses Bersama, began enforcing the tariff around a week ago following a period of free access after police cracked down on illegal levies last year.

Court Rejects Yaqut Cholil Qoumas's Request for House Arrest

The Jakarta Corruption Court has denied former Religious Affairs Minister Yaqut Cholil Qoumas's request to be transferred from detention to house arrest. Judges ruled that his post-operative medical needs can still be managed by the KPK detention centre. Yaqut is standing trial over alleged corruption in the distribution of the 2023-2024 hajj quota, which prosecutors say caused state losses of around Rp622 billion.

Swarna Nagari Charm Enlivens Independence Celebrations at Aston Serang

Aston Serang Hotel & Convention Center marked Indonesia's 81st Independence Day with a three-day programme showcasing Banten's cultural heritage. The highlight was the Pesona Swarna Nagari dance performance, held in collaboration with Sanggar Raksa Budaya and attended by Serang's Deputy Mayor, Nur Agis Aulia. The hotel said the initiative aims to position itself as a cultural hub while supporting local artists and heritage preservation.

UI Student Rally Blocked Again at Same Location

A group of University of Indonesia students marching towards the Hotel Indonesia roundabout was stopped by police and military personnel at the same point where they were blocked during a previous protest on 12 June. The demonstrators, marking Independence Day, carried eight demands including lower staple food and fuel prices, an end to centralisation of power, and broader regional autonomy. They remained in place as of 3.40 p.m. local time, chanting and delivering speeches.

Indonesia Launches Women's Credit Program With 8% Flat Interest Rate

The Indonesian government has introduced the Kredit Perempuan Prasejahtera (KPPS) scheme, offering women from economically vulnerable families access to productive financing of up to Rp15 million at a flat 8% annual interest rate, down from typical rates of around 24%. The programme, regulated under Coordinating Minister for Economic Affairs Regulation No. 7 of 2026, targets up to 9.16 million women running ultra-micro businesses and includes business assistance and empowerment services. It aims to expand credit access, create jobs, and support economic growth while protecting recipients from additional collateral requirements.

On Indonesia's 81st Independence Day, Dedi Mulyadi Pledges to Optimise Basic Services for the Public

West Java Governor Dedi Mulyadi used the province's first Independence Day ceremony at Gedung Sate to apologise for the fact that over 80,000 residents still lack electricity and to pledge that the regional budget will be focused on delivering basic services. He also urged all state officials to prioritise public welfare over personal benefits and vowed to protect the younger generation from harmful influences such as illegal drugs.

Prosecutor's office finds indications of budget misuse in West Lombok regional election

The Mataram District Prosecutor's Office has found indications of budget misuse that could lead to corruption charges in the management of the 2024 regional election budget by the West Lombok KPU. The findings emerged from an examination of accountability reports, revealing discrepancies between realised spending and initial proposals, as well as unreported changes to work items. The case, which stems from a public complaint, has now entered the investigation stage.

Electric Cars Race to Dominate Indonesian Roads, These Were the Best-Sellers in July

Competition in Indonesia's battery electric vehicle market intensified in July 2026, with BYD's Atto 1 reclaiming the top spot with 4,233 units distributed from factories to dealers. Overall BEV distribution rose about 10% month-on-month to 13,972 units, while newcomer Wuling Aira EV made a striking debut by entering the top five just days after its launch.

Minister Pigai supports establishment of Human Rights Study Centre in Timika

Indonesian Human Rights Minister Natalius Pigai has expressed full support for the establishment of a human rights study centre in Timika, Papua, describing it as the first such centre in Papua to be inaugurated by the ministry. The centre, established by the Mimika College of Law, is intended to serve as a partner to the ministry in addressing legal and human rights issues while educating the public. Local officials welcomed the initiative as a positive step towards strengthening human rights protection and legal capacity in the region.

Forestry Minister Says Bromo Fire Extinguished, Area to Reopen on 20 August

The Minister of Forestry has confirmed that the forest and land fire in Bromo Tengger Semeru National Park has been extinguished after 13 days. The area is scheduled to reopen to tourists on 20 August 2026. The minister urged the public to help prevent future fires, noting the significant economic and ecological costs of the blaze.

Gapki strengthens public understanding of palm oil industry

The Indonesian Palm Oil Association (Gapki) is intensifying collaboration with journalists to improve public understanding of the palm oil sector, which continues to face significant challenges. Gapki's communications head emphasised the need for continuous, data-driven engagement rather than reactive communication only when issues arise. The initiative aims to build a more open communication ecosystem and deliver accurate, substantive information to both domestic and international stakeholders.

BPJAMSOSTEK disburses Rp3.5 trillion in benefits for Central Java and Yogyakarta

BPJS Ketenagakerjaan (BPJAMSOSTEK) has distributed Rp3.5 trillion in benefits to 385,000 recipients in Central Java and the Special Region of Yogyakarta as of July 2026. The benefits cover old-age security, work accident insurance, death benefits, pension security, and job loss protection, including scholarships. The agency also launched a training programme to help beneficiaries market their businesses digitally.

Students remain in front of UOB, access to Hotel Indonesia roundabout restricted

Hundreds of students staging a protest on Jalan Jenderal Sudirman in Central Jakarta remained in front of UOB Plaza on Tuesday after police restricted access to the Hotel Indonesia roundabout. The demonstration, partly initiated by the University of Indonesia Student Executive Board, saw police deploy 9,242 personnel to secure the area. Authorities designated UOB Plaza as the protest point to manage traffic and protect public activity.

KB Bank Syariah Distributes Waqf Benefits for Education

KB Bank Syariah has distributed benefits from its Cash Waqf Linked Deposit (CWLD) Series 004 to support salary subsidies for teachers at TK/KB Aisyiyah and PKBM Surya Bangsa. The initiative also includes the groundbreaking for a new school building for KB/TK Aisyiyah Pondok Cabe Ilir. The programme demonstrates the use of productive waqf instruments to support social needs in the education sector.

Songket and Suntiang Inspire Push for Minangkabau Culture in Creative Industry

Indonesian brand Saskara has launched a new collection inspired by Minangkabau heritage, aiming to bring traditional West Sumatran culture into the national creative industry. The Bungo Ameh collection translates songket motifs and the suntiang crown into modern prayer garments, blending Islamic values with local tradition. The initiative reflects a broader push to develop culture-based products with added value for modern consumers and international markets.

Rope Snaps During 81st Independence Day Ceremony, UIN Medan Security Guard Climbs Flagpole

A security guard at the State Islamic University of North Sumatra (UINSU) in Medan climbed a flagpole during the 81st Indonesian Independence Day ceremony after the flag rope snapped. Bayu, the guard, acted on his own initiative to ensure the ceremony could proceed solemnly. The incident was captured on video and widely shared on social media.

BRIN promotes earthquake-resistant housing after NTT quake

Three prototype earthquake-resistant houses developed by Indonesia's National Research and Innovation Agency (BRIN) remained standing after a magnitude 7.7 earthquake struck East Nusa Tenggara in August 2026. The houses, built in 2021โ€“2022, use rubber bearing seismic technology made from natural rubber to absorb tremors. BRIN is now pushing for wider replication of the modular design across other earthquake-prone regions of Indonesia.

Facts and Chronology of Student Mass Shooting at School

A student opened fire at a private educational complex in Zamboanga, Philippines, killing a fellow student before taking his own life. The attacker live-streamed the shooting on Facebook using a body camera, prompting authorities to disable the account. Police are investigating how the suspect managed to bring firearms into the school and have suspended classes while urging the public to avoid sharing unverified content.

Central Sulawesi Provincial Government distributes Rp1 billion aid for NTT earthquake victims

The Central Sulawesi Provincial Government has raised Rp1 billion to assist victims of the earthquake in East Nusa Tenggara (NTT). Governor Anwar Hafid stated that the funds will be sent immediately, reflecting solidarity rooted in Central Sulawesi's own experience of the 2018 earthquake. The Governor also announced that an annual pilgrimage to the grave of national hero Tombolotutu will be held every 17 August.

Former Customs Director Charged with Causing Rp7.3 Trillion State Loss in CPO Case

Fadjar Donny Tjahjadi, a former technical director at the Directorate General of Customs and Excise, has been charged with causing Rp7.37 trillion in state losses through an alleged scheme to disguise crude palm oil exports as palm oil mill effluent. Prosecutors say he and ten co-defendants manipulated export classifications and avoided domestic market obligations and export levies between 2022 and 2024. The case is being heard at the Jakarta Corruption Court.

Small and Medium Industries Targeted to Enter National Electric Motorcycle Ecosystem, Here's Minister Agus's Strategy

The Ministry of Industry is targeting small and medium industries (IKM) to participate in the battery-based electric vehicle ecosystem, particularly the national electric motorcycle programme. Two IKM have already succeeded in producing battery box and bracket components for Alva electric motorcycles. The ministry is employing a supplier development approach to integrate IKM into the electric vehicle supply chain.

KPK presents three private-sector witnesses in Rejang Lebong case

The Corruption Eradication Commission (KPK) has presented three private-sector witnesses in the trial of suspended Rejang Lebong Regent Muhammad Fikri Thobari, who is accused of demanding project fees. The witnesses testified about fee requests of up to 15 percent and payments made for construction projects in the regency. Fikri is also charged with accepting an iPhone 17 Pro Max and an iPad worth over Rp31 million.

Minister Pigai Urges Advocacy for Residents in Papua Conflict Zones

Human Rights Minister Natalius Pigai has called on the Papua Tengah regional legislature and civil society to strengthen legal advocacy for residents affected by the ongoing conflict. He emphasised the need for documentation of alleged human rights violations and the availability of lawyers to support communities. Pigai also defended the presence of security forces in Papua, stating that individual perpetrators should be prosecuted rather than the institution blamed.