Indonesian Political, Business & Finance News

Archive: 18 August 2026

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Prabowo's State Address Mentions Marhaenism, PDIP Promotes Indonesianomics

PDI Perjuangan Secretary-General Hasto Kristiyanto has welcomed President Prabowo Subianto's reference to Marhaenism in his state address, while urging the government to adopt the party's Indonesianomics concept. Hasto stressed that any adoption of Marhaenism must be measured by the strengthening of people's productive assets, particularly for farmers and small workers. Prabowo had joked that his economic approach, often called Prabowonomics, was in fact Marhaenism, making it difficult for PDIP not to support him.

Leasing Boss Speaks Out on 0% Down Payment Plan for Electric Motorcycles, Issues This Reminder

Indonesia's financing industry has welcomed the government's plan to boost electric motorcycle sales through a 0% down payment and low instalment scheme. However, the Indonesian Financing Companies Association (APPI) says the programme requires further discussion to build a proper ecosystem involving financiers, manufacturers and dealers. The industry is waiting for concrete details on incentives, interest rates and funding sources before implementation.

Jakarta Police deploy 9,242 personnel to guard Tuesday rallies

Jakarta Police have deployed 9,242 personnel, including military and National Police officers, to secure public demonstrations in the capital, with strict orders prohibiting firearms. Authorities have urged protesters to avoid key economic and transport hubs such as the HI Traffic Circle and Sudirman area, while preparing traffic diversions as needed. The deployment follows the University of Indonesia Student Executive Board's announcement of a 'Call to Reclaim Independence' rally.

Central Kalimantan Police Name 12 Suspects in Forest and Land Fire Cases

Central Kalimantan Regional Police have named 12 suspects in connection with forest and land fires across the province. The police chief stressed that law enforcement is being prioritised alongside prevention and firefighting efforts. He called for greater public awareness and cooperation, noting that tackling the fires cannot be left solely to the government and task force personnel.

Prabowo Proposes Candidate for Head of Strategic Mineral and Commodity Exchange to OJK Board

The Indonesian House of Representatives has received a presidential letter proposing a candidate for the position of Chief Executive of Strategic Mineral and Commodity Exchange Supervision on the OJK Board of Commissioners. The announcement was made during a plenary session, though the candidate's name has not yet been disclosed. The DPR also received separate presidential letters concerning the sale of a decommissioned warship and candidates for Bank Indonesia leadership positions.

Israel and Board of Peace Agree Working Groups on Gaza Demilitarisation

Israeli Prime Minister Benjamin Netanyahu and the US-backed Board of Peace have agreed to establish two working groups focused on disarmament and demilitarisation of the Gaza Strip. The agreement, reached during talks in Israel attended by Jared Kushner and Nickolay Mladenov, makes demilitarisation a precondition for any reconstruction. A second working group will address urgent humanitarian issues including sanitation, clean water and public health.

Not Just Gold, This Freeport Mine Could Produce 7 Billion Pounds of Copper

PT Freeport Indonesia is developing the Kucing Liar underground mine, which is projected to yield over 7 billion pounds of copper and 6 million ounces of gold over its operational life. The company has invested around Rp25 trillion of a planned Rp72 trillion and is seeking an extension of its special mining business permit beyond 2041. The project is expected to sustain employment for 30,000 workers and maintain substantial state revenue contributions.

KPK summons former Pelni director Olih Masolich Sodikin as witness

Indonesia's Corruption Eradication Commission (KPK) has summoned a former director of state-owned shipping company Pelni as a witness in an alleged corruption case involving marine insurance commission payments. The case relates to payments made by state insurer Jasindo between 2015 and 2020, which allegedly caused state losses of Rp15.6 billion. Four suspects have already been detained in connection with the investigation.

Nagekeo emergency post in NTT prioritises logistics for vulnerable groups

The emergency post handling the earthquake disaster in Nagekeo Regency, East Nusa Tenggara, is prioritising aid distribution for vulnerable groups and the most crowded evacuation points amid limited supplies of essential goods. Key shortages include rice, eggs, mineral water, and tents for temporary shelter. Village and sub-district governments have been asked to coordinate data collection and collect aid allocations to ensure targeted distribution.

UI researcher uses AI technology for rapid detection of damaged roads

A researcher at the University of Indonesia has developed an AI-based method for inspecting road surface damage using deep learning and three-dimensional geometric analysis. The approach integrates a binocular stereo vision camera to automatically identify and measure road depressions. The research is expected to support more effective infrastructure maintenance and safer, more sustainable transport systems in Indonesia.

M 6.1 Earthquake Strikes South Nias, BMKG Urges Caution Against Aftershocks

A magnitude 6.1 earthquake struck South Nias, North Sumatra, at 13:02 WIB on Tuesday. The Meteorology, Climatology and Geophysics Agency (BMKG) has advised residents to remain alert for potential aftershocks. No tsunami warning has been issued and there are no immediate reports of damage.

Helping NTT Earthquake Victims Embodies Islam Rahmatan Lil Alamin, MUI: Helping Others Is Not Limited by Religion

The Indonesian Ulema Council (MUI) has stated that providing aid to earthquake victims in East Nusa Tenggara (NTT) reflects the Islamic principle of Rahmatan lil alamin, or mercy to all creation. KH Miftahul Huda, Secretary of the MUI Fatwa Commission, emphasised that compassion and mutual assistance during disasters transcend religious, ethnic, and racial differences. He affirmed that Muslims are obliged to help those in distress, including non-Muslims.

Trump's Son-in-Law Says US-Iran Dialogue Now Far More Intense

Jared Kushner, US special envoy and son-in-law of President Donald Trump, has stated that communications between Washington and various parties within the Iranian government are now more intense than before. He emphasised that President Trump is being patient and waiting for the right moment to secure a deal that serves American interests. The remarks come amid ongoing regional tensions and efforts by mediators to broker a new agreement.

TKD Under Pressure, Finance Ministry Asks Regional Governments to Cut Official Travel

Indonesia's Finance Ministry has urged regional governments to reduce unproductive spending such as official travel and ceremonial activities amid constrained fiscal space. The ministry wants local budgets prioritised for essential services and public needs, while also encouraging stronger locally generated revenue and careful use of alternative financing.

Trump's Son-in-Law Urges Netanyahu to Honour Gaza Agreement

Jared Kushner, the US special envoy for the Middle East and Gaza, has pressed Israeli Prime Minister Benjamin Netanyahu to implement the Gaza peace agreement, warning that failure to do so would expose a lack of sincerity about peace. Kushner argued the deal offers Israel major security gains if Hamas disarms voluntarily within 60 to 90 days. He also stated that the Trump administration will not permit Gaza's reconstruction to begin before full demilitarisation occurs.

Transmigration Minister Praises University of Indonesia Expedition Team for Building Bridge in West Papua

Transmigration Minister M. Iftitah Sulaiman Suryanagara has commended the University of Indonesia's Patriot Expedition Team for constructing a bridge in Werianggi, Teluk Wondama, West Papua. The initiative, carried out with local residents, aims to improve connectivity and support social and economic activity in the transmigration area. The minister said the action reflects the spirit of gotong royong and community service central to the Transmigration Transformation programme.

FDC Foundation Screens Documentary 'Negeri Susah Senyum' for West Java Mojang Jajaka

FDC Foundation has screened its documentary 'Negeri Susah Senyum' for Mojang Jajaka ambassadors from 27 regencies and cities in West Java, highlighting the poor state of dental health in remote communities. The film focuses on the Ciptagelar indigenous community in Sukabumi, where children suffer from tooth decay due to processed foods and lack of access to dental care. FDC Dental Clinic aims to expand its network to 100 clinics this year to improve access and change public stigma about dental treatment.

DPR Swears In Two Replacement Members: Nessy Replaces Tamanuri, Mesakh Replaces Paulus

The Indonesian House of Representatives (DPR) has formally sworn in Nessy Kalviya and Mesakh Mirin as interim replacement members for the 2024-2029 term. Nessy fills the seat left vacant by the late Tamanuri of NasDem, while Mesakh replaces Paulus Ubruangge of PAN, who was elected Deputy Regent of Nduga. The swearing-in took place during a plenary session attended by 316 members.

UGM and Unpad Academics Reveal Key to Achieving 610 Thousand Barrels per Day Oil Lifting Target

Academics from Universitas Padjadjaran and Universitas Gadjah Mada have assessed President Prabowo Subianto's target of 610,000 barrels per day of oil lifting by 2027 as a realistic challenge amid the natural decline of ageing oil wells. They argue that the Energy Ministry's strategy of accelerating greenfield exploration, applying Enhanced Oil Recovery technology, and improving the investment climate is on the right track. The target is seen as a defensive baseline to maintain Indonesia's bargaining power in global markets and reduce the burden of oil imports.

Malaysia considering consumption tax reform: Prime Minister Anwar

Malaysian Prime Minister Anwar Ibrahim has signalled the government is exploring a more progressive and efficient consumption tax system, potentially combining elements of the previously scrapped goods and services tax with the current sales and services tax. He acknowledged the GST was the most transparent collection method but expressed concern over its impact on the poorest citizens. The reform discussion comes as targeted subsidies have yielded significant savings, with the 2027 budget expected to address cost-of-living pressures and investment growth.

Man in Karangasem Arrested for Storing Subsidised Fuel in Modified Car Tank

Police in Bali have arrested a man for allegedly misusing subsidised fuel by transporting it in a modified vehicle. The suspect, identified as IKS, was found with 190 litres of Pertalite and equipment used to pump and sell the fuel. He faces up to six years in prison and a maximum fine of Rp60 billion under Indonesia's Oil and Gas Law.

Bulog North Sumatra increases grain absorption as harvest season begins

Perum Bulog's North Sumatra regional office is stepping up its absorption of unhusked rice from farmers as several districts enter the harvest period. Daily absorption has risen to around 400 tonnes in the second week of August, up from 200-300 tonnes in the first week. The grain will be used for government food reserves, including the Food Supply and Price Stabilisation Programme, food aid, and disaster response.

50 Percent Discount on Electricity Power Upgrades: An Opportunity to Boost Economic Activity from Home

The chairman of the National Electricity Consumer Protection Association (Alperklinas) has welcomed the government's Merdeka Daya programme, which offers a 50 percent discount on electricity power upgrade fees during Indonesia's 81st Independence Day celebrations. The scheme is expected to help households and small businesses adjust their electricity capacity to meet growing needs at a lower cost. The programme runs from 17 to 25 August 2026 for low-voltage single-phase household customers with initial power from 450 VA to 5,500 VA.

Senior Banker at Major State Bank Sacked After Criticising National Economy

Andrei Klepach, chief economist at Russian state development bank VEB, has been dismissed after publicly warning that Russia cannot win a protracted economic war against Ukraine. His remarks contradicted President Vladimir Putin's claims and highlighted mounting fiscal pressures, including a budget deficit far exceeding annual targets. The sacking underscores the Kremlin's intolerance of dissent as the economy strains under war spending and Western sanctions.

Video: Distributing Rp 2.1 Trillion in Revolving Funds, LPDB Disburses Low-Interest Credit

The Revolving Fund Management Institution (LPDB) for Cooperatives, a working unit of the Ministry of Cooperatives and SMEs, plans to disburse Rp 2.1 trillion in revolving funds in 2026, bringing its total financing to Rp 22 trillion for 3,900 cooperatives. The institution prioritises government programmes, including national strategic projects and the Free Nutritious Meals programme, while focusing on real-sector cooperatives tied to the people's economy. LPDB also aims to strengthen cooperative governance and administrative discipline through board certification.

Bekasi fire service deploys nine units to extinguish blaze engulfing 50 buses

A fire at the PO Sirnajaya bus depot in Cikarang Barat, Bekasi Regency, destroyed 50 decommissioned buses in the early hours of Tuesday. The Bekasi Fire and Rescue Service deployed nine units from multiple sectors to tackle the blaze, with no casualties reported. Police are investigating the cause of the fire while authorities continue to assess the material losses.

Erdogan Urges Trump to Use Diplomacy to Defuse US-Iran Tensions

Turkish President Recep Tayyip Erdogan has called on US President Donald Trump to maximise diplomatic efforts to ease tensions between Washington and Tehran. During a phone call, Erdogan stressed the importance of continuing negotiations to maintain regional stability. He also reaffirmed Turkey's commitment to supporting long-term peace efforts across the Middle East, including the reconstruction of Gaza.

Bareskrim Polri Uncover Gold Smuggling Using Gel Disguise to Dubai

Indonesia's Criminal Investigation Agency (Bareskrim Polri) has dismantled a sophisticated gold smuggling operation that disguised bullion as a gel-like substance to evade airport scanners. The syndicate, believed to be run by Indian nationals, allegedly produced around 30 kilograms of gold per day for smuggling to Dubai over an eight-month period. Authorities are now tracing the financial flows with immigration, customs, airport, and financial intelligence agencies.

IHSG Rises 1.27%, Foreign Net Buy Thin in Session 1

The Jakarta Composite Index (IHSG) strengthened by 1.27% to 6,482.99 during the first trading session on Tuesday, with foreign investors recording a modest net buy of Rp112.88 billion. Bank Central Asia led foreign net purchases, while Indosat saw the largest foreign net sell.

Febrie Asks Judge to Annul Suspect Designation and Sentul Search

Former Junior Attorney General for Special Crimes, Febrie Adriansyah, has filed a pretrial motion at the South Jakarta District Court seeking to annul his suspect designation and the search of his Sentul residence. His legal team argues that the investigation orders, seizure, and travel ban are unlawful and requests the return of all seized items. The Attorney General's Office had named Febrie a suspect in a money laundering case involving 74 kilograms of gold and Rp543 billion in cash.

Bandung City DPRD Urges Acceleration of Sharia BPR Regional Regulation to Become Perseroda

The Bandung City Regional People's Representative Council (DPRD) is pushing for the swift passage of a regional regulation to transform the city's Sharia People's Credit Bank (BPR Syariah) into a Regional Public Company (Perseroda). The move is mandated by national banking policy and OJK regulations, and is intended to strengthen governance, expand capital access, and improve the bank's contribution to regional revenue. Lawmakers also highlighted internal challenges, including high non-performing loans and leadership gaps, that must be addressed alongside the legal transformation.

Acting Pati Regent Misreads Pancasila Text During Independence Day Ceremony, Regency Government Says He Was Unwell

Acting Pati Regent Risma Ardhi Chandra went viral after misreading the second principle of Pancasila during the Independence Day ceremony. The Pati Regency Government clarified that Chandra was unwell and lacked focus, attributing the error to his condition rather than any deliberate act.

DPR Plenary Session Approves 14 Candidates for Supreme Court Justices and Ad Hoc Judges

The Indonesian House of Representatives has approved 14 candidates for Supreme Court justices and ad hoc judges for human rights and corruption cases. The approval followed a fit and proper test conducted by Commission III of the DPR. The selected candidates will fill positions across criminal, civil, religious, and tax chambers of the Supreme Court.

Civil Service Schools Open 2026 Registration Today, Check the Schedule

Registration for the 2026 Civil Service Schools (Sekolah Kedinasan) selection officially opens today, 18 August 2026, following a schedule set by the National Civil Service Agency (BKN). Nine ministries and agencies are participating, including the Ministry of Finance, Ministry of Home Affairs, and Ministry of Transportation. The selection process will run through early November 2026, with administrative screening, basic competency tests, and final announcements.

Energy Subsidy in 2027 State Budget Draft Rises 20.1% to Rp272.95 Trillion

The Indonesian government has proposed an energy subsidy budget of Rp272.95 trillion in the 2027 State Budget Draft, marking a 20.1% increase from the 2026 outlook. The allocation covers subsidised fuels, 3 kg LPG canisters, and electricity, with a continued shift towards beneficiary-based targeting using the National Socio-Economic Single Data system. The rise is partly attributed to higher electricity generation costs driven by rupiah depreciation and global oil price fluctuations.

Former Jampidsus Febrie Adriansyah Files Pretrial Motion Challenging Suspect Status and Seizures

Former Deputy Attorney General for Special Crimes Febrie Adriansyah has filed a pretrial motion at the South Jakarta District Court, contesting the legality of his suspect designation and the seizure of assets. The motion challenges actions by Polda Metro Jaya and the Police's Corruption Eradication Corps, with the Attorney General's Office named as a co-respondent. Febrie's legal team argues that the search, seizure, and subsequent legal actions were unlawful and should be annulled.

East Kalimantan Provincial Government Utilises Carbon Fund Scheme to Strengthen Forest Fire Mitigation

The East Kalimantan Forestry Service is allocating approximately Rp19 billion from the Forest Carbon Partnership Facility to bolster forest and land fire mitigation efforts. The funds will prioritise essential operational support for frontline personnel and volunteers ahead of the predicted September peak fire season. The province faces significant challenges in monitoring its 7.8 million hectares of forest with only 94 forestry police officers.

KPK summons Penukal Abab Lematang Ilir regent in BPK audit case

The Corruption Eradication Commission (KPK) has summoned the Regent of Penukal Abab Lematang Ilir, Asgianto, as a witness in an alleged bribery case involving the conditioning of audit results by the Supreme Audit Agency (BPK) for Muara Enim Regency. Four other witnesses, including regional officials from Muara Enim, were also called for questioning. The case has already led to multiple suspects, including a BPK official and private sector figures.

Economist says Rp26.34 trillion second-stage stimulus helps maintain purchasing power

CORE Indonesia economist Mohammad Faisal has welcomed the government's Rp26.34 trillion second-stage economic stimulus, saying it will help sustain public purchasing power. He noted that food aid, transport incentives, and internship and vocational programmes each target different groups, from lower-income households to middle-class commuters and jobseekers. Faisal cautioned that coverage remains limited, particularly for internship and vocational schemes, and urged stronger links with industry to maximise the multiplier effect.

Febrie Adriansyah asks judge to grant pre-trial motion over forced seizure

The legal team of former Junior Attorney General for Special Crimes Febrie Adriansyah has filed a pre-trial motion at the South Jakarta District Court, challenging the legality of search, seizure, and suspect designation orders issued by Polda Metro Jaya and the Attorney General's Office. The motion seeks to have the investigation orders, search warrant, suspect determination, travel ban, and subsequent derivative actions declared null and void. The case relates to alleged money laundering and forced detention efforts against Adriansyah.

DPR receives presidential letter on candidate for Head of Mineral and Strategic Commodities Exchange

The Indonesian House of Representatives (DPR) has received a presidential letter regarding the candidate for Chief Executive of the Mineral and Strategic Commodities Exchange Supervisory Board at the Financial Services Authority (OJK). Deputy Speaker Sufmi Dasco Ahmad announced the receipt during a plenary session but did not disclose the candidate's name. The DPR also received letters concerning the sale of a decommissioned warship and candidates for Bank Indonesia leadership positions.

Independence Spirit Fostered Through Empowerment of Ultra Micro Entrepreneurs

PT Permodalan Nasional Madani (PNM) is framing its ultra micro financing and mentoring programmes as a way of giving meaning to Indonesia's independence. The state-owned enterprise emphasises that empowering underprivileged women entrepreneurs helps build family economic resilience. PNM's approach combines capital access with ongoing business mentoring to help small enterprises grow.

Day Six: SAR Team Still Searching for Bogor City Government Civil Servant Who Fell into Cisadane River

Search and rescue teams have entered the sixth day of operations for Bayu Zulkarnain, a civil servant with the Bogor City Government who is believed to have fallen into the Cisadane River. Despite repeated dives and expanded sweeps along a 4.5-kilometre stretch, no sign of the victim has been found. The operation will continue until the seventh day in accordance with standard SAR procedures, after which an evaluation meeting will determine next steps.

Shares Up 294% in a Month, MDIA Turns Out to Be in HSC

The Indonesia Stock Exchange has announced that PT Intermedia Capital Tbk (MDIA), a Bakrie Group company, has a high shareholding concentration of 94.31%. The disclosure comes as MDIA's share price has surged 294.3% over the past month to Rp 280, giving it a market capitalisation of Rp 10.9 trillion. The exchange noted that the announcement does not necessarily indicate any regulatory violation.

Motorcyclist in Bogor Injured After Hitting Car While Avoiding Potholed Road

A motorcyclist in Cileungsi, Bogor Regency, was injured after colliding with a minibus while swerving to avoid a potholed road. The accident occurred in the early hours of Tuesday morning on Jalan Raya Narogong. The victim suffered head and hand injuries and was taken to hospital for treatment.

Latest Situation at All Airports in Flores After M7.7 Earthquake Hits NTT

Indonesia's Ministry of Transportation has confirmed that all airports in Flores and surrounding areas remain operational following the M7.7 earthquake that struck East Nusa Tenggara. Several airports sustained damage to terminal buildings, towers, and runways, but mitigation measures have been implemented to ensure flight safety. The ministry is coordinating with relevant agencies to support humanitarian aid and post-disaster response efforts.

Home Affairs Minister distributes compensation to families of earthquake victims in NTT

Home Affairs Minister Tito Karnavian has distributed compensation of Rp15 million per deceased victim to families affected by the earthquake in East Manggarai, East Nusa Tenggara. The government also provided generators, field beds, and Rp200 million for two villages to support emergency response efforts. Tito emphasised the importance of cooperation between the government and affected communities during the recovery period.

DPR member considers SMK Go Global strategic for producing competitive human resources

A member of Indonesia's House of Representatives has welcomed the SMK Go Global programme, describing it as a strategic government initiative to develop globally competitive Indonesian workers. The programme, initiated by the Ministry for the Protection of Indonesian Migrant Workers, aims to equip vocational school graduates with international certifications, foreign language skills and relevant work experience. It targets training 40,000 participants in the 2026 fiscal year for priority sectors including healthcare, services, manufacturing and construction.

Parents of Little Aresha Daycare Victims Display Heartfelt Banners at Trial

Parents of children abused at Little Aresha daycare attended the first hearing at Yogyakarta District Court, carrying banners calling for child protection and stern punishment. Eleven of thirteen caregiver defendants were present for the reading of indictments. One parent said she coordinates attendance because many other parents cannot follow the case due to work commitments.

Police Promise Humanist Approach in Securing Jakarta Demonstration

Polda Metro Jaya has instructed officers to prioritise a persuasive and humanist approach when securing a planned demonstration in Jakarta on Tuesday. Personnel are strictly prohibited from carrying firearms, with the use of tear gas and riot control units requiring direct authorisation from the police chief. The demonstration, organised by BEM UI under the banner 'Seruan Aksi Merebut Kemerdekaan', is scheduled to take place at the Bundaran HI area.