Indonesian Political, Business & Finance News

Archive: 18 August 2026

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Pramono Instructs Public Service Civil Servants in Jakarta Not to Work from Home

Jakarta Governor Pramono Anung has directed civil servants in public service roles to refrain from working from home, emphasising the need for direct interaction with residents. The instruction was issued as part of the capital's follow-up to central government guidance on flexible working arrangements and distance learning during the 81st Independence Day celebrations.

Indonesia Credit Card Rules: Rp10 Million Limit, MDR 0-0.7%

Bank Indonesia and the Indonesian Payment System Association have launched the Indonesia Credit Card, a domestic payment instrument processed entirely through national infrastructure. The card offers deferred payment facilities via QRIS and carries a maximum interest rate of 1.75% per month, with transaction limits of Rp10 million and merchant discount rates ranging from 0% to 0.7%. Seven major banks have been appointed as initial issuers, with Bank Syariah Indonesia joining as a next mover.

BMKG Urges Caution as High Waves up to 4 Metres Hit Southern Central Java Waters

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has warned of high waves reaching 2.5 to 4 metres in the southern waters of Central Java, posing risks to shipping until Friday. The agency also reported that tidal flooding in northern coastal areas has subsided, though floodwaters in Pekalongan and Demak have yet to recede. Light rain is expected in several mountainous regions despite the ongoing dry season.

Pramono instructs public service civil servants not to work from home and to remain in the field

Jakarta Governor Pramono Anung has directed civil servants involved in direct public service delivery to refrain from working from home and to remain on duty in the field. The policy follows central government guidance and is part of Jakarta's implementation of flexible working arrangements for the independence celebrations. The Jakarta Education Office has also provided a distance learning option for schools on 18 August 2026.

IHSG continues strengthening as market weighs domestic and global factors

The Jakarta Composite Index extended its gains on Tuesday, supported by optimism over the government's 2027 economic targets announced in President Prabowo Subianto's state address. Investors are also awaiting Bank Indonesia's policy meeting and key economic data releases this week. Global sentiment remains cautious due to renewed oil price pressures from Middle East tensions and mixed signals from US economic indicators.

Search expands for four missing after Lombok ship fire

Indonesian search and rescue authorities have expanded operations to locate four people still missing after a ship fire off Lombok, deploying a naval aircraft to cover a wider area south of Java. The sixth day of the operation combined aerial reconnaissance, maritime patrols, and shoreline searches, with local residents and fishermen alerted to assist. Coordination among rescue units remains intensive as efforts continue to find the missing individuals.

Jayakarta Hotel Labuan Bajo Closed After Severe Damage from M 7.7 Earthquake

The Jayakarta Hotel in Labuan Bajo, West Manggarai, has been temporarily closed after sustaining severe damage from a magnitude 7.7 earthquake. The four-star hotel suffered significant structural damage, particularly on its ground floor, with collapsed walls and fallen ceilings. Management has suspended operations since the day of the quake for maintenance and recovery.

Pramono Says PJJ for Students and WFH for Civil Servants Follow Central Government Directive, Unaware of Reasons

Jakarta Governor Pramono Anung has stated that the implementation of distance learning for students and work-from-home arrangements for civil servants in the capital on Tuesday follows directives from the central government. He said the Jakarta provincial government is obliged to comply with the policy and that he does not wish to investigate the reasons behind it. The Jakarta Education Office had earlier issued a circular allowing schools to conduct distance learning on 18 August 2026.

Amran Removes 14 Agriculture Ministry Officials Over Alleged Irregularities Worth Billions of Rupiah

Agriculture Minister Amran Sulaiman has temporarily dismissed 14 officials from echelon I to III at the Ministry of Agriculture over alleged financial irregularities involving billions of rupiah. The move is part of a disciplinary refresh and follows a directive from President Prabowo Subianto, who reportedly responded with 'gas pol' (full throttle). Amran stressed that the process remains based on the presumption of innocence, with those cleared to be reinstated or even promoted.

Pertamina Holds Cheap Grocery Redemption, 100% of Sales Proceeds for NTT Residents

Pertamina Patra Niaga has launched a cheap grocery redemption programme as part of the MyPertamina Pasar Rakyat event in Jakarta, offering 8,100 subsidised staple food packages nationwide. All proceeds from the programme will be donated to support communities affected by the earthquake in East Nusa Tenggara. The initiative aims to ease the burden of rising food prices while channelling humanitarian aid to disaster victims.

BKI Strengthens Shipping Safety Through Partnerships at IYF 2026

PT Biro Klasifikasi Indonesia (BKI) has signed multiple memoranda of understanding with key maritime stakeholders to enhance safety standards and risk management in the tourism shipping sector. The agreements were signed during the INSA Yacht Festival 2026 in Benoa, Bali, involving insurers, reinsurers, and tourism vessel operators. BKI aims to strengthen classification functions and safety standards to create a safer and more sustainable maritime tourism ecosystem.

7,968 Homes and 744 Public Facilities and Infrastructure Damaged by Earthquake in NTT

The Regional Disaster Management Agency (BPBD) of East Nusa Tenggara has reported that 7,968 homes and 744 public facilities and infrastructure have been damaged by the 7.7 magnitude earthquake centred in Mbay, Nagekeo Regency. The figures represent a more than fourfold increase from the previous report on 15 August, as field teams continue to expand data collection and verification across affected districts. Officials stress that the numbers remain provisional and may change as verification progresses.

US-Iran War Claims New Victim: Japanese Cars

Japanese car manufacturers are increasingly exposed to the fallout from the US-Iran conflict, with analysts warning of supply chain disruptions and rising raw material costs. The Strait of Hormuz and the Red Sea are critical shipping routes for Japanese automakers, which rely on aluminium and petrochemicals such as naphtha. A stronger yen, potentially driven by government intervention, could further squeeze operating profits.

Pramono affirms PJJ and WFH in Jakarta follow central government directives

Jakarta Governor Pramono Anung has confirmed that the implementation of distance learning and work-from-home arrangements for civil servants in the capital on Tuesday follows directives from the central government. He stated that the Jakarta provincial government is obliged to implement the policy without questioning its background. The measure is outlined in a circular issued by the Jakarta Education Office on 15 August 2026.

IHSG Opens Up 1%, Haji Isam Becomes 'Fuel' This Morning

The Jakarta Composite Index (IHSG) rose more than 1% on Tuesday, driven by a surge in energy stocks, particularly Bayan Resources, amid rumours that Haji Isam's Jhonlin Group is seeking a controlling stake. Investors are also watching the Bank Indonesia rate decision and external factors such as Japan's economic growth and China's industrial data.

Indonesia speeds NTT's infrastructure recovery after M7.7 quake

Indonesia's Public Works Ministry is accelerating infrastructure recovery in East Nusa Tenggara following a 7.7-magnitude earthquake, with Minister Dody Hanggodo visiting Nagekeo District to assess damage and coordinate repairs. The ministry has reopened roads, restored water supplies, prepared housing, and helped repair schools in line with directives from President Prabowo Subianto. Dody emphasised that the state's duty is to restore people's lives and that the work is only complete when essential services such as water actually reach affected communities.

Rice, Sugar and Beef Prices Rise Again, Check the Full List

The National Strategic Food Price Information Centre (PIHPS) reported mixed movements in staple food prices, with increases in lower-quality rice, shallots, red chillies, beef and premium sugar. Meanwhile, prices for eggs, fresh chicken, large red chillies and cooking oil declined. The data reflects ongoing volatility in Indonesia's basic food commodity markets.

House Commission III Targets Enactment of Asset Forfeiture Bill by December 2026

House of Representatives Commission III is intensifying deliberations on the Asset Forfeiture Bill and aims to pass it into law by December 2026. Chairman Habiburokhman said the commission will hold public hearings two to three times a week to ensure meaningful public participation. The bill is considered a new concept in Indonesia's legal system and is expected to strengthen the fight against corruption.

81st Indonesian Independence Day Commemoration in Jagoi Babang Promotes Unity and Nationalism

The 81st anniversary of Indonesia's independence was commemorated at the Jagoi Babang Cross-Border Post in West Kalimantan, with around 750 participants from government, military, police, students and local communities. Major General Freddy Ardianzah of the Ministry of Defence led the ceremony and stressed the importance of unity, sovereignty and cooperation in border areas. The event also featured cultural performances and a volleyball tournament, highlighting community engagement in the border region.

Gold Export Benchmark Price Rises Due to Global Demand

Indonesia's Ministry of Trade has raised the export benchmark price (HPE) and reference price (HR) for gold for the second period of August 2026. The increase is attributed to rising global demand for the precious metal, driven by lower global interest rates and a weaker US dollar. The new HPE is set at US$131,777.67 per kilogram, up 0.65 percent from the previous period.

Antam gold price rises Rp18,000 to Rp2.695 million per gram on Tuesday

The price of gold bullion produced by state-owned miner Aneka Tambang (Antam) increased by Rp18,000 to Rp2,695,000 per gram on Tuesday. The buyback price also rose to Rp2,555,000 per gram. Transactions are subject to income tax, with a 1.5 percent levy on buybacks above Rp10 million and a 0.25 percent tax on purchases.

Pretrial Hearing on Former Jampidsus Febrie Adriansyah's Suspect Status Held Today

A pretrial hearing is underway at the South Jakarta District Court to examine the legality of the suspect designation against former Deputy Attorney General for Special Crimes Febrie Adriansyah. His legal team argues that he was never questioned as a witness before being named a suspect and that the money laundering charge lacks a clear predicate offence. The case stems from a joint police investigation into alleged corruption related to PLN coal-fired power plants, Asabri, and a Krakatau Steel subsidiary.

Thirteen Suspects in Jogja Daycare Child Abuse Case Face First Trial Today

Thirteen suspects in the Little Aresha Daycare abuse case, including the head teacher and foundation chairman, are scheduled to appear for their first hearing at the Yogyakarta District Court today. The case files were declared complete (P21) and transferred to the prosecution service on 24 June 2026. The suspects have been divided into three separate case files based on their respective roles and the charges brought against them.

Beware: Screen Share on Zoom Mobile Can Be Hijacked, Recognise the Signs

Cybersecurity researchers have discovered a dangerous vulnerability in Zoom Workspace that allows remote code execution through the screen sharing annotation tool, affecting all major platforms. The flaw requires no user interaction and can be exploited silently, with researchers demonstrating how AI can accelerate the development of sophisticated exploits. Zoom has released updates to mitigate the threat and urges users to install the latest version immediately.

Mouser Adds New Manufacturer Partners, Expands Industrial Automation Portfolio to Support Future Industrial Systems

Mouser Electronics has expanded its industrial automation portfolio by adding nine new manufacturer partners in the first half of the year. The move broadens access to technologies in AI, connectivity, power, control systems, and sensing for increasingly integrated industrial environments. The company aims to help engineers accelerate product development and bring smarter, more efficient systems to market.

Why the Pentagon's UFO Document Disclosure Is So Important? Here's What Experts Say

The recent release of UAP documents by the US government marks a significant step in the scientific study of unidentified anomalous phenomena. Former NASA UAP study team member Mike Gold emphasised that transparency and data-driven evaluation are crucial for reducing stigma and advancing research. He also highlighted the national security implications, as UAP data collection can help identify foreign drones.

Leading the 81st Independence Day Ceremony, Lampung Governor Calls for Real Work

Lampung Governor Rahmat Mirzani Djausal led the province's 81st Independence Day ceremony, urging citizens to honour the nation's founders through tangible work and innovation. The ceremony, held at Korpri Field, featured a flag-raising by the provincial Paskibraka and was attended by military, police, civil servants, veterans, and students. The Governor emphasised that independence must be felt in daily life and called for contributions towards the Indonesia Emas 2045 vision.

From the Jakarta Charter to the Caliphate

The article examines the enduring debate over the relationship between Islam and the state in Indonesia, tracing its roots from the Jakarta Charter of 1945 to contemporary discussions about the caliphate. It argues that the removal of the 'seven words' was a strategic political compromise rather than a defeat for Islamic aspirations, and that the subsequent struggle has evolved from constitutional formalism towards more substantive approaches. The piece concludes that the caliphate debate represents a fundamentally different question from the Jakarta Charter, challenging the very form of the nation-state itself.

Commission III targets Asset Forfeiture Bill completion by December 2026

The House of Representatives' Commission III is aiming to pass the Asset Forfeiture Bill by December 2026, with the chairman citing the need for extensive public consultation. The bill is considered a priority in the 2026 national legislation programme and is intended to strengthen anti-corruption efforts.

Pramono orders Kramat Jati Market clean-up after student dies in accident

Jakarta Governor Pramono Anung has instructed East Jakarta officials to reorganise the Kramat Jati Market area after an 18-year-old student died in a traffic accident. The victim's motorcycle is believed to have skidded on a road made slippery by water from fish traders' activities before he was run over by a garbage truck. Pramono has called for coordinated action involving Satpol PP and the Transport Agency to prevent similar incidents.

Flores quake response shifts beyond emergency aid

Military and government agencies in Flores are expanding their earthquake response beyond immediate relief to restore essential services such as electricity, communications, fuel supplies, and transport infrastructure. Priority areas include Mbay and Maumere, which suffered the heaviest damage, with aid centres activated in Labuan Bajo and Maumere to speed coordination. Officials stress that recovery efforts require cross-sector cooperation to help residents resume normal activities.

Niu Lai Phenomenon: Bad Animated Film Goes Viral and Sells Out in China

A low-budget Chinese animated film called Niu Lai has become an unexpected box office hit, driven by social media buzz around its poor quality and confusing plot. Netizens have embraced the film as a 'pure handmade' antidote to AI-generated content, while its bull-themed title has been adopted as a symbolic gesture of support for a bullish stock market. State media has criticised the trend, warning that the success of low-quality films could damage audience trust in the national film industry.

Rupiah Weakens to Rp 17,847 Despite BI Continuing NDF Market Intervention Ahead of BI Rate Announcement

The Indonesian rupiah weakened to Rp 17,847 per US dollar in spot trading on Tuesday despite Bank Indonesia's continued intervention in the non-deliverable forward market. Market attention is focused on the central bank's interest rate decision on Wednesday, with economists expecting the benchmark rate to be held at 5.75 percent. The decision will be the first monetary policy announcement under new BI Governor Destry Damayanti.

Maximum Interest Rate Cap for Indonesia Retail Credit Card

Bank Indonesia and the Indonesian Payment System Association have launched the Kartu Kredit Indonesia (KKI) retail segment, a domestic credit card processed entirely through national payment infrastructure. The new instrument will follow existing credit card interest rate caps of 1.75% per month or 21% per year. Seven banks have been appointed as initial issuers, with Bank Syariah Indonesia joining as a next mover.

NTT Regional Police deploy personnel to provide USEFT therapy for earthquake survivors

The East Nusa Tenggara Regional Police have dispatched a team to Maumere, Sikka Regency, to deliver psychological and emotional support to earthquake victims through USEFT therapy. The initiative aims to help residents restore calm, spirit, and optimism following the disaster. Police emphasised that their presence extends beyond security and emergency aid to include a humanistic approach addressing mental and emotional wellbeing.

Israel Rejects BoP Peace Proposal, HNW Urges International Pressure

Indonesian MPR Deputy Speaker Hidayat Nur Wahid has called for stronger international pressure on Israel after it rejected a 15-point peace proposal discussed by the Board of Peace. He urged the eight BoP-supporting countries, including Indonesia, to take more effective action and for US President Donald Trump to apply firmer pressure, including possible sanctions. HNW also encouraged Indonesia to use the momentum of its independence anniversary to reaffirm its commitment to Palestinian statehood.

Defence Minister distributes 20 tonnes of logistical aid for earthquake victims in NTT

Defence Minister Sjafrie Sjamsoeddin has dispatched 20 tonnes of emergency supplies to earthquake victims in East Nusa Tenggara. The aid, transported by an A400M aircraft, includes tents, beds, food, medical supplies and communications equipment. The minister also instructed local military personnel to provide maximum assistance from evacuation through to regional recovery.

Tambora Jungle Run to boost economy and tourism visits in the region

Tambora National Park in West Nusa Tenggara is developing sport tourism through the Tambora Jungle Run 2026, scheduled for 30 August 2026, to open business opportunities and increase tourist visits. The event aims to promote Tambora as a world-class sports tourism destination while generating economic benefits for surrounding communities through SMEs, transport, culinary services, and tour guides. Long-term plans include developing agrotourism and connecting the area with other attractions such as Saleh Bay's whale shark tourism.

State Palace Holds Independence Day Celebrations at 40 Densely Populated Settlements and Kampungs in Jakarta

The Indonesian government expanded the 81st Independence Day celebrations beyond the State Palace and Monas to 40 densely populated neighbourhoods and kampungs across Jakarta. State Secretary Minister Prasetyo Hadi said the move aims to make the commemoration more inclusive, ensuring residents who rarely experience central festivities can participate. Activities included traditional competitions, music stages, local MSME bazaars, health checks, and distribution of basic food packages.

Electric Car Catches Fire Near Goa Jepang in Klungkung, Extinguished Using Sand

A mini electric car caught fire on Jalan Raya Takmung near Goa Jepang in Klungkung, Bali, on Tuesday morning. The blaze was reportedly triggered by sparks from improperly fitted replacement components. Firefighters and residents managed to extinguish the fire within 15 minutes using sand, and no casualties were reported.

Prices Already Down, Buying Pertamina LPG Also Gets Rp8,100 per Cylinder Discount

PT Pertamina Patra Niaga has launched the Semarak Merdeka MyPertamina promotion, offering discounts of up to Rp8,100 per cylinder on Bright Gas refills from 15-23 August 2026. The promotion coincides with an official price reduction for Bright Gas LPG, with 12 kg cylinders falling from Rp220,000 to Rp218,000 and 5.5 kg cylinders from Rp103,000 to Rp102,000. The company said the offer is a gesture of appreciation to customers during the Independence Day period.

IHSG Opens Higher, Poised to Strengthen Alongside Asia-Pacific Markets; Wall Street Sluggish

The Jakarta Composite Index (IHSG) opened 46 points higher at 6,448 on Tuesday, with analysts forecasting a sideways-to-upward trend. Gains in Asia-Pacific markets, led by Chinese equities, provided support despite weaker-than-expected Chinese industrial data. Wall Street closed lower as investors weighed rising oil prices and awaited major US retailer earnings.

One Indonesian soldier killed, two wounded in Central Papua gunfight

An Indonesian soldier was killed and two others were wounded in a gunfight with an armed group in Central Papua's Jila District. The clash involved personnel from the Jila Military Post and the 133/Yudha Sakti Task Force Post against members of the Kodap III Puncak group allegedly led by Pemne Kogoya. Security operations are continuing as the TNI and police coordinate to protect residents and prevent further disruptions.

House leadership calls for coordination to speed up NTT earthquake response

Deputy Speaker of the Indonesian House of Representatives Sari Yuliati has urged central and regional governments, BNPB, and the Ministry of Social Affairs to coordinate effectively in responding to the earthquake in East Nusa Tenggara. She stressed that optimal coordination is essential to meet the needs of affected communities promptly. The House has also committed to overseeing post-disaster rehabilitation until conditions return to normal.

Breaking News! IHSG Opens Strong This Morning, Up 1%

The Jakarta Composite Index (IHSG) surged 1.01% at the opening of trading on Tuesday following the Independence Day holiday, reaching 6,466.58. Investors are focused on the Bank Indonesia policy meeting, external debt data, and the 2027 state budget draft. Global sentiment remains mixed amid weaker economic data from Japan and China and anticipation of the Fed minutes.

Prabowo and Indonesia's Path to Revival

President Prabowo Subianto's 2026 state address signals a shift towards productive sovereignty, aiming to reduce dependency while remaining open to global markets. The strategy prioritises food and energy self-sufficiency, downstream industrialisation, and institutional reform. Early indicators show economic growth, falling poverty, and record investment, though rural poverty and inequality remain challenges.

VinFast Strategy to Build Ecosystem for Strengthening Electric Vehicle Adoption

Vietnamese electric vehicle manufacturer VinFast is focusing on total cost of ownership and after-sales support to win over increasingly rational Indonesian consumers. The company is promoting its 'Drive Worry-Free' concept, which includes free battery rental for two years, a lifetime battery warranty, and free scheduled maintenance. VinFast is also expanding its charging network and offering income opportunities through a partnership with Green SM.

Russia Prepares Su-57D as the Brain of AI-Based Drone Swarms

Russia is developing the two-seat Su-57D fighter jet as a command platform for controlling AI-enabled drone swarms, according to Sukhoi Design Bureau director Mikhail Strelets. The aircraft, which made its maiden flight in May 2026, is intended to serve as a bridge towards next-generation air warfare concepts. The second cockpit will allow a dedicated operator to manage unmanned systems while the pilot focuses on flying and combat duties.

State Palace Holds Independence Day Events in 40 Densely Populated Areas Across Jakarta, Here Are the Locations

The Indonesian government has expanded the 81st Independence Day celebrations to 40 locations across Jakarta, focusing on densely populated neighbourhoods. Minister of State Secretary Prasetyo Hadi stated that the initiative aims to make the commemoration more inclusive and bring the festivities closer to ordinary citizens. The events include traditional competitions, music stages, local SME bazaars, free health checks, and distribution of basic food packages.

What Is the Credit Limit for Indonesia's Domestic Credit Card? Here's the Answer

Bank Indonesia has officially launched the Kartu Kredit Indonesia (KKI) retail segment as a domestic-network credit card alternative, with seven first-mover banks and BSI as a next mover. The central bank outlined eligibility requirements, including a minimum income of Rp3 million per month, while credit limits follow each issuer's own credit assessment. The scheme is intended to provide an efficient, prudent deferred payment instrument integrated with national payment infrastructure such as QRIS.