Indonesian Political, Business & Finance News

Archive: 20 August 2026

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International concerts open opportunities for 27.4 million creative economy workers

Creative Economy Minister Teuku Riefky Harsya has said that upcoming international concerts in Indonesia can create economic opportunities for 27.4 million creative workers across various subsectors. He highlighted the multiplier effect of events such as Andrea Bocelli's concert, which involves performers and backstage professionals while also showcasing local products through a Creative Village concept. The minister noted that international events can expand creative economy activity by creating jobs, enabling knowledge transfer, and connecting local products with wider markets.

South Korea ready to support efforts to open shipping in the Strait of Hormuz

South Korean President Lee Jae-myung has stated his country's intention to participate actively in international efforts, including with the United States, to restore freedom of navigation in the Strait of Hormuz. Seoul is discussing possible practical contributions while remaining within the bounds permitted by law and its basic policy principles. The statement follows reported US requests for allies, including South Korea, to consider sending warships to secure shipping through the strategic waterway.

Developer Day Seeks Talent in Technology Sector

Pandi, FTII, and ASPILUKI are collaborating to hold developerday.id 2026, the second edition of an event aimed at connecting Indonesian tech talent with communities, industry players, and potential investors. The initiative seeks to strengthen the national digital innovation ecosystem and prepare local developers for the APICTA Award 2026. Organisers highlight the growing app sector, with investment reaching around Rp54.18 trillion in 2025 and an estimated two million developers in Indonesia.

MedcoEnergi sends logistical aid to residents affected by NTT earthquake

PT Medco Energi Internasional Tbk has delivered humanitarian assistance, including logistical supplies and basic necessities, to communities affected by the 7.7-magnitude earthquake in East Nusa Tenggara. The aid was handed over to the National Disaster Management Agency (BNPB) and will be distributed according to needs on the ground, prioritising vulnerable groups. Local officials expressed appreciation for the company's contribution to the disaster response effort.

Jakarta LRT to Extend from Manggarai to Dukuh Atas, Construction to Begin in 2027

The Jakarta LRT network is set to expand further with the Manggarai-Dukuh Atas corridor, with construction planned to commence in 2027. The 2.4 km extension, part of Phase 1C, will connect the LRT to the Dukuh Atas transport hub, integrating it with MRT, airport rail, KRL Commuter Line, LRT Jabodebek, and TransJakarta services. The project is estimated to require Rp2.9 trillion in investment and is projected to serve an average of 20,554 passengers daily.

Vice President visits evacuees, inspects damaged port in Sikka

Vice President Gibran Rakabuming visited earthquake-affected areas in Sikka Regency, East Nusa Tenggara, to inspect damage to Laurentius Say Port and meet with displaced residents. He distributed toys and books to children at an evacuation shelter and handed over baby supplies to a mother. The visit aimed to ensure government attention to education and post-disaster recovery remains a priority.

MAKI: Pretrial Motion Actually Proves 74 Kilograms of Gold Belong to Febrie

The Indonesian Anti-Corruption Society (MAKI) argues that a pretrial motion filed by former Deputy Attorney General for Special Crimes Febrie Adriansyah inadvertently confirms his ownership of 74 kilograms of gold and nearly Rp500 billion in cash seized by police. MAKI coordinator Boyamin Saiman said the request for the return of the assets strengthens the case for investigators. He added that the motion could provide further evidence in the ongoing corruption and money laundering investigation.

Baznas distributes 48,000 litres of water to drought-hit Kulon Progo residents

The National Amil Zakat Agency (Baznas) and Kulon Progo Regency Baznas have distributed 48,000 litres of clean water to residents affected by drought in Kulon Progo, Yogyakarta. The aid targets villages where water sources have become increasingly difficult to access. Baznas has also distributed 1.5 million litres of clean water across 72 villages in six provinces and built bore wells at 37 locations.

Pertamina ensures fuel supply for power plants in Flores after earthquake

PT Pertamina Patra Niaga has confirmed that fuel supplies for power plants in Flores, East Nusa Tenggara, remain secure following the magnitude 7.7 earthquake on 15 August 2026. The company is currently serving power plant needs from the Reo Fuel Terminal while preparing alternative routes, including via the Tanjung Wangi Integrated Terminal, in case aftershocks disrupt distribution. Pertamina is also coordinating fuel support for the military and police to aid disaster response and recovery efforts.

Indictment Reveals Heru Went Bankrupt from Crypto Before Robbing and Killing Politician's Child

The indictment of Heru Anggara reveals that he lost his entire savings of Rp 400 million in cryptocurrency trading before resorting to robbery and murder. After his crypto investments collapsed and his wife left him, Heru targeted the home of PKS politician Maman Suherman in Cilegon, where he killed Maman's nine-year-old son during a botched robbery attempt. The case highlights the severe personal consequences of speculative crypto trading and has drawn significant public attention.

Proposed Sale of Former KRI Ki Hajar Dewantara Draws Response from House Deputy Chair

Deputy Chair of House Commission I Dave Laksono has called for further deliberation on the government's proposal to sell the former KRI Ki Hajar Dewantara. He stressed the need to assess the vessel's asset value, operational necessity, and historical significance to the Indonesian Navy. Any transfer, he said, must be conducted in an orderly, transparent, and accountable manner.

KPK Summons Three Sukoharjo Public Works Officials in Bupati Etik Extortion Case

Indonesia's Corruption Eradication Commission (KPK) has summoned nine witnesses, including three officials from Sukoharjo's Public Works and Spatial Planning Agency, as part of its investigation into an alleged extortion scheme involving Bupati Etik Suryani. The case centres on claims that Etik demanded around 40 per cent of incentive payments received by staff at the regional financial and asset management agency. Investigators have also searched the bupati's office and residence, where 2.5 kg of gold suspected to be proceeds of corruption was reportedly stored.

Pidie Launches SIGAP e-SPPT to Ease PBB-P2 Payments

The Pidie Regency Government in Aceh has introduced the SIGAP Pidie application with an e-SPPT feature to digitise access to rural and urban land and building tax (PBB-P2) information. The initiative aims to improve transparency, reduce administrative barriers, and encourage timely tax payments before the 30 September 2026 deadline. Officials emphasise that tax revenue directly supports regional development and public services.

Blocks F and G Mark Initial Phase of Housing Development at Manggarai TOD

State railway operator PT Kereta Api Indonesia is preparing Blocks F and G as the first stage of the Transit-Oriented Development at Manggarai station in South Jakarta. The development will include 1,232 residential units and retail space across approximately 2.19 hectares, with a groundbreaking scheduled for 21 August 2026. KAI is also coordinating the master plan and urban design guidelines to ensure the project aligns with transport connectivity and community needs.

BRI maintains credit growth momentum while prioritising prudence

PT Bank Rakyat Indonesia (Persero) Tbk is sustaining credit growth while reinforcing prudent banking and disciplined risk management. The state-owned lender reported improved asset quality, with its non-performing loan ratio easing to 3.01 per cent in March 2026 from 3.07 per cent in December 2025. BRI emphasised selective expansion focused on productive sectors, particularly MSMEs, supported by stronger underwriting, monitoring, and early warning systems.

Partnership Drives Tobacco Farmers' Welfare in Rembang

The Ministry of Agriculture and tobacco industry stakeholders have conducted a field visit to Rembang, Central Java, to review a partnership programme aimed at boosting productivity and competitiveness. The initiative, running since 2009, provides technical assistance and guaranteed market absorption for over 10,000 farmers across Central Java. Farmers report improved incomes and reduced rural crime, while the ministry highlights plans for international exchange opportunities for young farmers.

PKT Distributes Urgent Aid to Residents Affected by NTT Earthquake

PT Pupuk Kalimantan Timur (Pupuk Kaltim) has distributed Rp100 million in aid to communities affected by the earthquake in Nusa Tenggara Timur, focusing on food, sanitation, nutrition, and health needs. The assistance, delivered through the PKT Proaktif programme, targets residents in Manggarai Regency during the emergency response and recovery period. The company coordinated with the Manggarai Regency Government to ensure the aid reached those most in need.

Putin Furious! Russian Ballistic Missiles Explode in Kyiv, People Trapped

Russian ballistic missiles struck Kyiv in the early hours of Thursday, killing at least three people and injuring twenty others. The attack damaged residential buildings, warehouses, and a children's hospital, cutting electricity in parts of the Ukrainian capital. Diplomatic efforts involving the United States and Europe have so far failed to secure a lasting ceasefire.

Israel clashes with Turkey, will Saudi Arabia and Pakistan defend Ankara?

Tensions between Turkey and Israel have escalated after Israeli strikes on a Syrian base in Idlib, which Tel Aviv framed as a warning against Turkish military build-up in Syria. The attack follows the signing of the Makkah Pact, a mutual defence agreement between Turkey, Saudi Arabia and Pakistan. Ankara-based sources suggest Israel is testing both the new security architecture and the Trump administration's stance, while neither Saudi Arabia nor Pakistan has yet responded publicly.

Israeli curfew forces Palestinians in West Bank to remain at home

An Israeli military operation in the southern West Bank has imposed a curfew on around 40,000 Palestinians, restricting their access to daily necessities and essential services. The UN Office for the Coordination of Humanitarian Affairs reported that snipers were positioned on rooftops and roads were blocked with earth mounds. UN Secretary-General Antonio Guterres expressed deep concern over reports of new illegal Israeli settlement outposts in the occupied West Bank.

Beijing commends Malaysia PM Anwar’s ‘One China’ stance following Taiwan’s rebuke

Beijing has praised Malaysian Prime Minister Anwar Ibrahim for reaffirming his support of the 'One China' principle and defending China's right to use force if peaceful reunification with Taiwan fails. Anwar's remarks, made during an Al Jazeera interview, drew swift condemnation from Taiwan's foreign ministry, which warned the stance could undermine Taiwanese business confidence in Malaysia. The episode highlights Malaysia's delicate diplomatic balancing act between its close economic ties with China and its broader regional relationships.

People's Party for Independence Day becomes momentum to strengthen South Jakarta MSME economy

The People's Party celebrating Indonesia's 81st Independence Day is being used to strengthen the economy of Jakpreneur-assisted micro, small and medium enterprises (MSMEs) in South Jakarta. Selected MSMEs receive operational capital support through a staged payment mechanism, with food and beverages provided free to visitors. The initiative aims to develop business capacity rather than generate direct turnover for participants.

KKI 2026: 'Beudaya Meusare Sare' Spirit Drives MSME Revival and Competitiveness

Bank Indonesia's annual Karya Kreatif Indonesia (KKI) 2026 exhibition opened in Jakarta with the theme of strengthening synergy to help MSMEs recover, become resilient, and competitive. The event features over 550 physical exhibitors and more than 1,300 online participants, with a particular focus on supporting MSMEs in Sumatra and East Nusa Tenggara affected by natural disasters. The central bank is collaborating with 27 ministries and agencies and 34 strategic partners to enhance access to financing, digitalisation, and market expansion.

Kemdiktisaintek and Pertamina develop bioethanol from oil palm empty fruit bunches

Indonesia's Ministry of Higher Education, Science, and Technology and state energy firm Pertamina are exploring second-generation bioethanol production using oil palm empty fruit bunches. The initiative, which includes assessing technology from India's Praj Industries, aims to add value to palm oil industry by-products without opening new land. The project aligns with national priorities on energy security, downstreaming, and domestic resource optimisation.

Electric Motorcycle Incentive Reduced to Rp3 Million per Unit, Purbaya Speaks Out

Finance Minister Purbaya Yudhi Sadewa has confirmed that the government's electric motorcycle purchase incentive has been set at Rp3 million per unit, with a total budget of Rp3 trillion for a target of one million units. He acknowledged that domestic production capacity remains a major constraint, with some manufacturers only able to produce around 20,000 units annually. Purbaya estimates that actual uptake by the end of the year will likely reach only around 100,000 units.

IHSG Approaches 6,500! Foreign Investors Scramble for These 10 Shares, Pouring in Rp648 Billion

The Jakarta Composite Index (IHSG) surged more than 1% in the first trading session on Thursday, driven by commodity and mining stocks, closing near the psychological level of 6,500. Foreign investors recorded a net buy of Rp648.22 billion across all markets, with PT Amman Mineral Internasional Tbk leading the purchases. The rally was supported by a weaker US dollar, falling US Treasury yields, and Bank Indonesia's decision to hold the BI-Rate at 5.75%.

Understanding Economic Deciles and Their Link to DTSEN and Social Assistance

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that economic decile categorisation is based on economic surveys and the National Single Socio-Economic Data (DTSEN). The government is currently conducting an economic survey, with social assistance policies now using a single data source from DTSEN. The data is dynamic, and decile positions can change as socio-economic conditions evolve.

Indonesia, Germany partner on MMS for pregnant women to cut stunting

Indonesia and Germany are collaborating to establish local production of multiple micronutrient supplements (MMS) for pregnant women as part of efforts to reduce stunting. The facility in Cimanggis, operated by PT Bayer Indonesia with a Rp99 billion investment, can produce up to 1.2 billion tablets annually, enough to meet domestic demand and supply exports to 42 countries. The initiative is supported by the German government and includes environmentally friendly operations such as rooftop solar panels.

Radea Respati Paramudhita Supports Cross-Sector Collaboration for Inmate Empowerment

Bandung City Council Commission I Chair Radea Respati Paramudhita has called for sustained cross-sector collaboration between universities, local government, correctional institutions, businesses and communities to empower inmates. Speaking at a community service event at the Bandung Class IIA Women's Prison, she stressed that training programmes must be followed by product development, promotion and market access. She highlighted the dual benefits of the ecopreneurship approach in reducing household plastic waste while creating economic opportunities for inmates.

Pramono on Cycle Lanes: I Must Be Careful in Making a Decision

Jakarta Governor Pramono Anung has said he will be cautious in deciding the fate of the city's cycle lanes, following calls for their closure because they are reportedly used more by motorcyclists. He noted that cycling communities such as Bike to Work want the lanes retained, while some members of the public argue they are misused by motorbike riders. Pramono added that as a keen cyclist himself, he wants to avoid the impression that the decision is driven by his personal hobby.

M6.0 Aftershock in Ruteng, East Nusa Tenggara Today, One Resident Dies

A magnitude 6.0 aftershock struck Manggarai Regency on Flores Island, East Nusa Tenggara, on Thursday, causing one fatality. The victim, a 56-year-old man with a history of heart disease, died from a heart attack triggered by panic rather than structural collapse. Authorities have urged residents to remain calm as aftershocks continue following the magnitude 7.7 main earthquake on 15 August.

With Rain Potential, Pramono Orders Jakarta Weather Modification for Tomorrow

Jakarta Governor Pramono Anung has instructed the weather modification operation (OMC) to be carried out again on Friday, citing the presence of potential cloud formations. He acknowledged that cloud seeding does not guarantee rainfall but stressed that such efforts remain necessary to optimise rain potential. Pramono also expressed hope that the operation would increase rainfall intensity without causing flooding.

DIY Regional Government Questions BPS on Changed Decile Data: Many Protests

The Yogyakarta Special Region (DIY) administration has questioned the Central Statistics Agency (BPS) over changes in the decile classification of citizens' welfare levels, which has triggered public protests. Officials argue that the revised data, based on the National Socio-Economic Single Data (DTSEN), does not reflect actual conditions on the ground. Residents whose decile status has changed can request corrections through local operators or the Cek Bansos application.

Agriculture Minister provides farm machinery assistance to Untad Palu graduates and students

Agriculture Minister Andi Amran Sulaiman has distributed agricultural machinery and livestock to graduates and students of Tadulako University in Palu, Central Sulawesi, to encourage youth participation in farming. The assistance includes hand tractors, boreholes, combine harvesters, four-wheel tractors and goats, alongside free coconut and cocoa seedlings. The government has allocated Rp9.5 trillion for developing seven strategic commodities across 870,000 hectares of smallholder plantations between 2025 and 2027.

KP2MI strengthens assistance for verification of ship crew documents to China

Deputy Minister for the Protection of Indonesian Migrant Workers Christina Aryani has called for stronger assistance in verifying and endorsing placement documents for Indonesian migrant workers, particularly ship crew bound for China. The move follows an online meeting with the Indonesian Consul General in Shanghai to address administrative obstacles. The ministry aims to establish clear procedures to ensure orderly, safe and compliant placement of workers.

Novo Nordisk and AWS accelerate drug discovery with AI

Danish pharmaceutical firm Novo Nordisk has entered a strategic partnership with Amazon Web Services to speed up drug discovery and modernise operations using artificial intelligence and cloud computing. The collaboration will leverage AWS AI services to shorten the journey from therapeutic target identification to first human dosing. The agreement also extends to other Amazon units, including Amazon Pharmacy and Amazon One Medical, to support new ways of delivering therapies to patients.

As Saguling Reservoir Dries Up, It Turns Into Farmland

Prolonged drought caused by El Niño has drastically reduced water levels at Saguling Reservoir in West Bandung Regency, exposing dry land that local residents are now using for seasonal farming. Farmers are planting quick-harvest crops such as chillies, aubergines, cucumbers and pak choi, with some reporting harvests worth up to Rp30 million. The phenomenon mirrors conditions seen in 2023, when the reservoir also receded for several months.

Iran Warns Gulf States Against Assisting US Military

Iran's armed forces have warned Gulf states that any assistance to the US military will be treated as joint involvement with American forces. The warning follows the UAE's suspension of economic ties with Tehran after accusing Iran of firing ballistic missiles at its vessels. Tensions remain high following the outbreak of war in late February, with Gulf states reportedly striking targets inside Iran in retaliation.

Airlangga Reveals German Investment Potential in Indonesia, Here Are the Sectors

Coordinating Minister for Economic Affairs Airlangga Hartarto has highlighted investment opportunities for German companies in Indonesia, particularly in renewable energy, semiconductors, and vocational education. Germany remains a key partner, with cumulative investment of US$1.23 billion from 2021 to 2026 and involvement in the Just Energy Transition Partnership. Both sides also discussed finalising the Indonesia-EU CEPA trade agreement.

Tailless tukong chicken from West Kalimantan now registered as Indonesian Communal Intellectual Property

The West Kalimantan provincial government has registered the tukong chicken as Communal Intellectual Property (KIK) in the genetic resources category. The registration, issued by the Ministry of Law, aims to protect, preserve and develop this distinctive local poultry breed. The tukong chicken is notable for lacking a tailbone and is found across several West Kalimantan districts.

Indonesian Foreign Ministry: Indonesia-China CSD dialogue to focus on economic partnership

Indonesia's Foreign Ministry has confirmed that the inaugural Comprehensive Strategic Dialogue (CSD) with China on Friday will prioritise economic partnership, although detailed topics are still being finalised. The dialogue follows the elevation of bilateral ties to a comprehensive strategic partnership and stems from agreements reached during Foreign Minister Sugiono's visit to Beijing in April 2025. A '2+2' meeting of foreign and defence ministers is also scheduled for the same day.

US National Debt Tops US$40 Trillion for First Time, Here's the Impact on the Economy

The United States' national debt has surpassed US$40 trillion for the first time, driven by persistent budget deficits and rising interest payments. Fiscal watchdogs warn the milestone signals a deteriorating fiscal outlook that could fuel inflation and constrain future spending. The White House says the Trump administration is focused on cutting waste and accelerating growth to improve the debt-to-GDP ratio.

Hoax! Prabowo did not order TNI-Polri to arrest all Acehnese over Garuda symbol incident

A Facebook post claiming President Prabowo Subianto ordered the military and police to arrest all Acehnese people for stepping on the Garuda symbol has been debunked as false. Officials including the National Police Chief and Presidential Chief of Staff confirmed the situation in Aceh is under control following disturbances on 15 August 2026. They stated the unrest was caused by only a small number of individuals and does not reflect the wider Acehnese community.

Purbaya Allocates Rp31 Trillion to Convert Part-Time PPPK to Full-Time

Finance Minister Purbaya Yudhi Sadewa has allocated Rp31 trillion in the 2027 state budget to convert part-time government contract workers (PPPK) to full-time status. The conversion will be phased over three years, covering approximately 541,000 part-time PPPK teachers. The government maintains the fiscal deficit will remain at 2.4% of GDP despite the additional spending.

Gibran Inspects School Damaged by NTT Earthquake, Here's Its Current Condition

Vice President Gibran Rakabuming visited SD Inpres LXXVI Wairklau in Sikka Regency, which was damaged by the recent earthquake in East Nusa Tenggara. The school is now serving as a temporary evacuation post, and Gibran checked on the condition of displaced residents and their children. He emphasised that post-disaster recovery must ensure children can return to learning safely and comfortably.

Kebumen Regency Prepares 3,000 Free Nasi Tempelang Portions for 397th Anniversary

The Kebumen Regency Government is marking its 397th anniversary by serving 3,000 free portions of nasi tempelang to the public. The celebration includes cultural and religious activities, culminating in a communal meal intended to symbolise the closeness between the government and its citizens. The anniversary date was changed to 21 August following Regional Regulation No. 3 of 2018.

Kinerja Investasi Bagus, DPLK Syariah Muamalat Jadi Investor Pertama ETF Emas

DPLK Syariah Muamalat reported strong investment performance with its highest-yield package returning 16.77% annually as of July 2026, and became the first investor in Indonesia's sharia-compliant gold ETF (XGLD) listed on the Indonesia Stock Exchange. The pension fund's corporate clients grew to 971 companies and individual participants surpassed 125,000, pushing assets under management to Rp2 trillion, up 12% year-on-year. The move into gold ETFs reflects a diversification strategy aimed at offering participants higher potential returns while adhering to Islamic principles.

Electronic KTP recording reaches 208.5 million citizens by first half of 2026

Indonesia's electronic identity card (e-KTP) biometric recording has reached 208.5 million citizens, or 97.28 per cent of the 214.3 million required to hold one, according to Ministry of Home Affairs data for the first half of 2026. The figure represents an increase of over 2 million compared with the second half of 2025. The government attributes the progress to expanded mobile services and direct recording in areas with limited access to civil administration facilities.

PMHU Number 2 of 2026: Between Pilgrim Protection and Business Fairness

The article examines Minister of Hajj and Umrah Regulation (PMHU) Number 2 of 2026 through the lens of legal philosophy, questioning whether its licensing requirements create a fair playing field for businesses. It argues that while the state has legitimacy to regulate for pilgrim protection, such authority must be exercised proportionally and without creating unjustified market barriers. The authors call for a balance between legal certainty, distributive justice, and the principle of fair equality of opportunity.

Hoax! Bahlil did not say many people asked the government to raise fuel prices

A Facebook post falsely claimed that Energy and Mineral Resources Minister Bahlil Lahadalia said many citizens had asked the government to raise fuel prices. Fact-checking by ANTARA found no such statement, and the photo used was taken from an unrelated article about the formation of a downstreaming task force. The government has maintained subsidised fuel and LPG prices despite global oil price fluctuations.