Indonesian Political, Business & Finance News

Archive: 20 August 2026

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Foreign Ministry: National Capacity Maximised for NTT Earthquake Response, Foreign Aid Not Yet Needed

Indonesia's Foreign Ministry has stated that the government is prioritising domestic resources to handle the aftermath of the 7.7 magnitude earthquake in East Nusa Tenggara, with foreign assistance deemed unnecessary at this stage. The ministry expressed appreciation for international solidarity while confirming that discussions on potential aid may continue in upcoming bilateral meetings. The death toll has risen to 71, with over 398 tonnes of domestic aid already distributed to affected areas.

Indonesia deports Palestinian, Nigerian nationals over visa violations

Indonesian immigration authorities have deported a Palestinian and a Nigerian national for violating the country's immigration laws. The Palestinian had overstayed their visa, while the Nigerian could not present valid travel documents or a residence permit. Officials emphasised that the deportations were carried out professionally and in accordance with humanitarian principles, reinforcing Indonesia's commitment to legal certainty and national sovereignty.

AI transformation in the payment sector needs to be carried out in stages

Industry experts at the Prima Executive Gathering 2026 in Bali emphasised that artificial intelligence adoption in Indonesia's payment and financial services sector should be gradual and tailored to each organisation's needs. They highlighted the importance of governance, human-in-the-loop mechanisms, and cross-functional involvement beyond just technology teams. The discussion underscored that effective AI implementation is measured by business outcomes rather than the sheer volume of technology deployed.

FM Sugiono to visit Australia, New Zealand to strengthen ties

Indonesian Foreign Minister Sugiono will visit Australia and New Zealand to attend high-level bilateral meetings, including the Indonesia-Australia 2+2 Foreign and Defense Ministers' Meeting in Melbourne and the Indonesia-New Zealand Joint Ministerial Commission in Auckland. The discussions will focus on security cooperation, economic resilience, and bilateral programme implementation ahead of the 70th anniversary of Indonesia-New Zealand diplomatic relations. The tour follows recent strategic dialogue with China, underscoring Indonesia's active regional diplomacy.

BMKG: Yesterday's Rain in Jakarta Was Not Due to Weather Modification

The Meteorology, Climatology and Geophysics Agency (BMKG) has clarified that rain in Jakarta on Wednesday occurred naturally, not as a result of cloud seeding. The agency attributed the rainfall to converging moist air masses from the Indian and Pacific Oceans. BMKG also forecast that most of Indonesia will remain dry until the rainy season begins around mid-October.

Bamus Betawi urges Pati residents not to mobilise masses to Jakarta

The Betawi customary council has called on residents of Pati, Central Java, to refrain from sending large numbers of demonstrators to Jakarta for a planned protest at the DPR building on 27 August 2026. The group is demanding the passage of the Asset Forfeiture Bill. Bamus Betawi supports anti-corruption efforts but urges that aspirations be conveyed through proper legal channels.

Lancia Consult Earns Great Place To Work® Certification™ in Four Countries

Lancia Consult has received Great Place To Work® Certification™ across the UK, Singapore, Indonesia, and South Africa, with 99% of employees rating it as a good workplace. The independent survey highlights consistent trust, collaboration, and open leadership across all levels of the organisation. The consultancy views this recognition as validation of its people-first culture underpinning high-quality client work.

Public Works Minister sends water tankers to earthquake-affected residents in NTT

Public Works Minister Dody Hanggodo has dispatched public hydrants and mobile water tankers to meet clean water needs in earthquake-affected areas of Nusa Tenggara Timur. The assistance targets Ende and Nagekeo regencies, where access to water is particularly difficult due to the dry conditions on Flores Island. The ministry is also preparing to address sanitation issues that may arise in the aftermath of the disaster.

Gibran calls for basic needs of quake-affected residents to be prioritised

Vice President Gibran Rakabuming Raka has instructed that the basic needs of residents affected by the earthquake in Sikka Regency, East Nusa Tenggara, be made the top priority in disaster response. He urged regional leaders and the Forkopimda to go directly to the field to ensure aid reaches all communities, including those in hard-to-access mountainous areas. Gibran also pledged to report any obstacles found on the ground to President Prabowo Subianto.

Vice President Gibran Visits NTT Earthquake Victims, Meets Mother Who Just Gave Birth

Vice President Gibran Rakabuming Raka visited earthquake victims at TC Hillers Hospital in Maumere, Sikka Regency, East Nusa Tenggara, on Thursday. He inspected emergency treatment facilities and spoke with patients, including a mother who had just given birth to a baby girl after the earthquake. The Vice President assured that post-earthquake handling would continue to be improved.

Flores Earthquake Displaced Persons Reach 66,363

The death toll from the magnitude 7.7 earthquake in Flores, East Nusa Tenggara, has risen to 75, with 66,363 people displaced and 266 seriously injured. Nagekeo Regency hosts the largest number of displaced persons at 29,471, followed by East Manggarai with 19,330. Health authorities report 68 patients are being treated across six referral hospitals as local governments continue data collection and relief efforts.

House Commission V: Institutional integration needed for disaster management

Deputy Chairman of House Commission V Syaiful Huda has called for the consolidation of Indonesia's disaster management institutions under a single command structure. He argued that disaster budgets should be centralised in one agency and then distributed to other bodies according to their respective tasks and functions. Huda also stressed the need for dedicated reserve funds to ensure disaster response extends beyond the emergency phase.

How Much Does It Cost to Charge a Wuling Air EV at Home? Here Are the Details

Charging a Wuling Air EV at home in Indonesia costs less than Rp50,000 for a full charge, even for the Long Range variant, based on PLN electricity tariffs for the July–September 2026 period. Factoring in charging losses of 10–15%, the estimated energy cost is around Rp125–Rp160 per kilometre, significantly cheaper than conventional city cars. Wall charger installation adds a one-off cost starting from Rp6.8 million for the unit alone, or around Rp14 million for a complete package including installation and PLN power adjustment.

1,378 Schools Affected by NTT Earthquake, Government Prepares Emergency Classrooms

The 7.7 magnitude earthquake in Nusa Tenggara Timur has damaged 1,378 educational institutions, affecting over 177,000 students and 21,000 teachers. The Ministry of Primary and Secondary Education is deploying emergency tents, learning materials, and psychosocial support while most schools shift to home-based or online learning. At least one student has died, and the government has provided compensation to affected families.

BPOM, URI explore AI training for future leaders

Indonesia's Food and Drug Supervisory Agency (BPOM) is collaborating with URI to develop AI-focused vocational education and leadership training, aiming to strengthen the national talent pipeline for drug and food supervision. The initiative includes AI-based decision simulation laboratories and a proposed centre for AI ethics, regulation, and auditing. BPOM currently has only 60 percent of its required workforce, underscoring the urgency of specialised human-resource development.

Bekasi Regency Government distributes 5.7 million litres of water to drought-affected residents

The Bekasi Regency Government has distributed 5.7 million litres of clean water to residents affected by drought since the initial distribution on 9 June, as part of efforts to prevent a water crisis during the 2026 dry season. The aid has reached 65,659 people across 35 villages in 11 sub-districts, with the southern part of the regency experiencing the most severe conditions. Local authorities are also addressing the impact on 1,827 hectares of productive agricultural land through pumping programmes and other mitigation measures.

Indonesia Stock Exchange Ready to Lower Minimum Share Price Limit to Rp 1

The Indonesia Stock Exchange (IDX) plans to reduce the minimum share price for regular and cash markets from Rp 50 to Rp 1 per share, aiming to improve liquidity and price discovery. The policy will also revise auto rejection limits and is scheduled for implementation on 7 September 2026. Analysts have welcomed the move but cautioned that investor protection and fundamental analysis must be strengthened to prevent speculation.

Police Assert Search and Seizure in Febrie Case Complied with Regulations

The Indonesian National Police have defended the legality of searches and seizures conducted in the corruption and money laundering case involving former Deputy Attorney General for Special Crimes Febrie Adriansyah. Police officials stated the actions were procedurally sound and relevant to the alleged offences. The statement was made during a pretrial hearing at the South Jakarta District Court.

Hundreds of Hotspots Surround Bangka Belitung, BPBD Urges Residents to Be Alert for Forest and Land Fires

The Bangka Belitung Disaster Mitigation Agency (BPBD) has reported 166 hotspots across six regencies in the province, raising concerns over potential forest and land fires. The agency attributes the surge to extreme weather and strong winds, and has urged local BPBD offices to verify and extinguish any fires promptly. Residents have been advised to avoid burning rubbish or discarding cigarette butts carelessly.

KPK to question foreigners in immigration extortion case

Indonesia's Corruption Eradication Commission (KPK) is preparing to question foreign nationals as part of its investigation into an alleged extortion scheme involving residence permit processing. Investigators aim to establish whether the foreigners were aware they were being extorted and whether immigration agents informed them of the scheme. The case has already led to the dismissal of Deputy Minister Silmy Karim and the naming of eight suspects, with alleged proceeds totalling Rp145.5 billion.

Why is the US Pressuring the International Criminal Court?

The United States has imposed sanctions on senior International Criminal Court officials, accusing the tribunal of being corrupt and politicised. The move marks a significant escalation in Washington's long-running campaign against the court, which has issued arrest warrants for leaders including Vladimir Putin and Benjamin Netanyahu. Legal experts warn the pressure could create a chilling effect on the court's work and lead to overcompliance by international businesses.

Jakarta sends Rp5.8 billion in aid for earthquake victims in NTT

The Jakarta provincial government has dispatched Rp5.8 billion worth of assistance to communities affected by the earthquake in East Nusa Tenggara. The aid includes food, shelter equipment, medicines, clean water facilities and cash, with further collections open until 25 August 2026. Distribution is being coordinated through the national logistics system involving BNPB and the Indonesian military.

Navy secures Rp10.25 trillion in mining resources in 2026

The Indonesian Navy has reported securing 514.1 tonnes of mining commodities worth Rp10.25 trillion through operations across 2026, a sharp increase from the previous year. The figure includes illegal tin sand seized in Bangka Belitung in August. The Navy emphasised that state losses extend beyond the physical value of goods to include royalties, tax revenue, and environmental impacts.

Ten Bogor Commuter Line Journeys Delayed Over an Hour After Trespassing Incidents on Rail Tracks

Ten Bogor Commuter Line services were delayed by more than an hour and two were cancelled after a train struck a person on the tracks between Pasar Minggu and Manggarai. A separate incident involving a motorcycle on an unofficial crossing disrupted Tangerang line services. KAI Commuter has apologised and pledged to intensify public safety education along rail corridors.

New Mobile Banking Theft Modus Grows More Alarming, Accounts Drained Instantly

Cybercriminals are increasingly targeting mobile banking applications, with new methods capable of draining customers' accounts entirely. Indonesia's Financial Services Authority (OJK) has issued a series of preventive measures for bank customers to protect themselves against data theft and phishing. The regulator advises users to safeguard PINs, verify transactions carefully, avoid public Wi-Fi for banking, and report suspicious activity immediately.

Dozens of Students Caught Skipping School in Satpol PP Raid

The Sidoarjo Public Order Agency (Satpol PP) conducted a raid on coffee shops and cafes during school hours, detaining more than a dozen students found loitering in uniform. The students were taken to the Satpol PP headquarters for data collection and coaching, and were required to sign official statements promising not to repeat the offence. Officials warned that repeat offenders would be sent to the Sidoarjo Social Pondok (Liponsos) for further rehabilitation.

HIMKI pushes craft transformation to achieve US$6 billion export target

The Indonesian Furniture and Craft Industry Association (HIMKI) is urging a paradigm shift in the national craft sector to reach US$6 billion in furniture, craft, and home décor exports by 2031. HIMKI and the Ministry of Trade have formed a task force to accelerate export growth, with a focus on design, innovation, branding, and market diversification. The association also called for better integration of trade promotion instruments to convert market information into concrete transactions.

KPK confirms no sting operation in Bogor Regency

The Corruption Eradication Commission (KPK) has denied reports of a sting operation in Bogor Regency, West Java. Spokesperson Budi Prasetyo clarified that the information circulating among the public was untrue, though the agency is questioning several parties in response to public complaints. Further details will be disclosed transparently at a later date.

Comau Wins 'Outstanding Partner Award' as Horse Powertrain Produces Three Million Transmission Units

Comau has received the 'Core Partnership • Outstanding Partner Award' from Horse Powertrain after the latter's Changxing plant produced three million 7DCT transmission units. The award recognises Comau's role as the main integrator of the automated assembly line, which was completed on time in 2021 despite challenging market conditions. The partnership underscores Comau's commitment to manufacturing excellence and production efficiency.

Supreme Court Issues Regulation Prohibiting Cassation of Acquittals, Attorney General's Office to Study

The Indonesian Supreme Court has issued Circular Letter No. 4 of 2026, which firmly prohibits appeals and cassation against acquittal verdicts in criminal cases. The Attorney General's Office has stated it will study the new regulation, which aligns with the recently enacted Criminal Procedure Code (KUHAP) under Law No. 20 of 2025.

NTT Earthquake Update: 75 Dead, 92,375 Displaced

The death toll from the earthquake in East Nusa Tenggara has risen to 75, with over 92,000 people now displaced. The National Disaster Mitigation Agency (BNPB) reported an increase in casualties and evacuees as aftershocks continue. Relief distribution has reached 729 tonnes of aid since 15 August.

US Treasury's buybacks validate Indonesia's earlier policy: Purbaya

Indonesia's Finance Ministry official Purbaya Yudhi Sadewa has claimed that the US Treasury's decision to expand its government bond buyback programme validates Indonesia's earlier adoption of a similar policy. He argued that both initiatives share the goal of maintaining liquidity and safeguarding economic stability during market disruptions. The US recently doubled its buyback limit to at least US$4 billion per operation to curb heavy selling and contain surging yields on longer-term bonds.

LPS says it has separated conventional and sharia management

The Indonesia Deposit Insurance Corporation (LPS) has separated the management and bookkeeping of conventional and sharia financial systems since 2025 to maintain public trust. The move aims to ensure that all customer funds in both banking systems receive protection according to their respective frameworks. LPS also separates the premiums paid by banks based on the system they operate.

Police Deploy Team to Free Nine Teenagers Kidnapped by Papuan Separatists

Police in Mimika, Central Papua, have ordered a rescue operation for nine girls and teenage women reportedly kidnapped and held hostage by an armed separatist group in Jila District. Central Papua Police Chief Brigadier General Jeremias Rontini confirmed that a team has been prepared, though deployment is currently hampered by transport difficulties. The National Commission on Human Rights (Komnas HAM) has condemned the targeting of civilians, particularly children and teenage girls, and urged security forces to ensure the safety of all residents in Papua.

Shell Returns to Indonesia, Offshore Oil and Gas Becomes Investment Magnet

Global energy company Shell has expressed serious interest in returning to invest in Indonesia's upstream oil and gas sector, with a particular focus on offshore working areas. The interest was conveyed by Shell's head office management to SKK Migas chief Djoko Siswanto, who reported the development to the Minister of Energy and Mineral Resources. The move is seen as a positive signal for Indonesia's efforts to boost national production and attract global investment in exploration and field development.

Purbaya: Rp44 billion aid for NTT earthquake not new budget

Finance Minister Purbaya Yudhi Sadewa has clarified that the Rp44 billion in emergency aid for earthquake-hit East Nusa Tenggara was not a new allocation but part of funds already transferred in early August 2026. The clarification follows confusion after a local regent appeared unaware of the transfer. The government is now assessing further funding needs for recovery while monitoring regional finances.

The Rise of Ziswaf and the Future of National Economic Resilience

Indonesia's Islamic economy is growing robustly, with sharia banking assets reaching Rp1,075 trillion and the halal value chain expanding by 6.21 percent. Zakat, infak, sedekah and waqf (Ziswaf) instruments are positioned as strategic non-government fiscal tools for wealth redistribution, with an estimated annual potential of Rp343 trillion. Religious Affairs Minister Nasaruddin Umar argues that optimising these Islamic social funds could mobilise up to Rp2,500 trillion when combined with taxation, potentially transforming national economic resilience.

Grab: Ride-hailing complements public transport connectivity

Grab Indonesia has highlighted the role of ride-hailing services in bridging first and last mile connectivity for public transport users, with 71 per cent of surveyed riders connecting to or from mass transit. The company has established pick-up points at transport hubs and collaborates with MRT Jakarta and the JakLingko ecosystem. The remarks were made as the Ministry of Transportation prepares the National Transport System Bill to integrate policies, networks and services across transport modes.

Israel Accuses Erdogan of Dragging Turkey into 'Dangerous Adventure' in Syria

Israel has accused Turkish President Recep Tayyip Erdogan of dragging Turkey into a 'dangerous adventure' in Syria, following an Israeli strike on an airbase near Aleppo. Prime Minister Benjamin Netanyahu implied Israel was behind the attack, saying it had warned Turkey against establishing a military presence in Syria. Turkey has denied any military presence at the Abu al-Duhur airbase and reaffirmed its support for Syrian sovereignty.

House Commission III Urges Police to Investigate Rp1 Trillion Counterfeit Stamp Syndicate

House of Representatives Commission III has urged the police to fully investigate a counterfeit stamp syndicate uncovered by Polda Metro Jaya and the Ministry of Finance. The syndicate is estimated to have caused potential state losses of up to Rp1 trillion. Lawmakers are calling for the entire distribution chain and intellectual actors to be brought to justice.

Social forestry benefits 1.4 million families in Indonesia: official

Indonesia's social forestry programme now covers 8.41 million hectares and supports 1.4 million families across 36,095 villages, according to an official speaking at a conservation summit in Jambi. The initiative is framed as a key component of poverty reduction efforts under Presidential Instruction No. 8 of 2025, particularly given that 36.7 percent of people living near forest areas are classified as poor. Officials are now working to measure whether participating households have moved up from the lowest income decile through agroforestry, non-timber forest products, and carbon trading opportunities.

Economist says policy-making is a test of Bank Indonesia's independence

An economist from the University of Indonesia has warned that Bank Indonesia's policy-making process is becoming a test of the central bank's independence. Teuku Riefky said that while BI remains legally independent, pressure to align its policies with government agendas must not compromise its core mandate of maintaining inflation and exchange rate stability. A government communications expert added that fiscal and monetary coordination is still needed, but independence is essential for market confidence and credibility.

RI's Air Force Chief of Staff recalls intercepting foreign aircraft

Indonesia's Air Force Chief of Staff has recounted an incident from around 15 years ago when his squadron intercepted and forced down a foreign aircraft flying from Dili to Kuala Lumpur without proper clearance. The episode exposed a regulatory vacuum, prompting him and other officers to develop what became Indonesia's Airspace Management Law. He said the new law provides a strong legal foundation for safeguarding the country's airspace.

PSR Absorbs 1 Million Workers, 9 Universities Now Receive Palm Oil Scholarships

Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the People's Palm Oil Replanting Programme (PSR) has realised 427,441 hectares with Rp12.14 trillion in funding since 2017, absorbing up to 1 million workers. The programme aligns with the B50 biodiesel policy, which raises CPO demand from 15.6 million to 18 million tonnes. BPDP has also partnered with 9 universities to provide scholarships for 5,000 students, with a target to increase this fourfold to 20,000.

NTT Earthquake Death Toll Reaches 75, Displaced Persons Surge to 92,735

The death toll from the magnitude 7.7 earthquake that struck Nusa Tenggara Timur has risen to 75, with the number of injured climbing to 907. The National Disaster Mitigation Agency (BNPB) also reported a sharp increase in displaced persons to 92,735, while aftershocks continue to pose risks. Authorities are distributing hundreds of tonnes of aid and urging residents to remain vigilant.

Home Affairs Ministry: Central priority programmes still consider regional conditions

The Ministry of Home Affairs has emphasised that central government priority programmes are implemented with attention to the diverse real conditions of each region, including fiscal capacity. The ministry is conducting visits to synchronise central and regional development planning and provide support such as budgeting and technical guidance.

Ten Bogor Commuter Line journeys delayed after person struck by train

Ten Bogor Commuter Line services were delayed by more than an hour and two were cancelled after a person was struck by a train between Pasar Minggu and Manggarai on Thursday morning. Eight Tangerang line services were also delayed after a motorcycle was hit at an illegal level crossing. KAI Commuter has apologised and pledged to strengthen coordination with local authorities to improve railway safety.

Metrodata Urges AI Adoption to Deliver Real Business Value

PT Metrodata Electronics Tbk has called on Indonesian organisations to shift their focus from merely adopting artificial intelligence to generating measurable business value. Speaking at the 21st Metrodata Solution Day, the company highlighted a significant gap between high AI investment and low implementation maturity in Indonesia. The forum brought together more than 30 global technology partners to discuss strategies for building, running, and scaling AI initiatives.

923 Schools in NTT Shift to Home Learning After Earthquake

The Ministry of Primary and Secondary Education has recorded 923 schools in East Nusa Tenggara implementing home learning following the recent earthquake. The ministry is distributing 100 emergency classroom tents, expected to be operational next week, alongside aid packages for affected students. A flexible emergency learning guide has also been issued to support education during the crisis.

Southeast Asian Automotive Market Positive in July; Driven by Malaysia, Indonesia, Vietnam

The ASEAN automotive market showed clear signs of recovery in July 2026, with Malaysia, Indonesia and Vietnam leading the way. Sales rose in Malaysia and Indonesia, while Vietnam continued to be one of the region's fastest-growing markets, driven increasingly by electric vehicles. Thailand's recovery remains cyclical and dependent on government stimulus, with production and exports still under pressure.