Indonesian Political, Business & Finance News

Archive: 20 August 2026

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Like Changing Classrooms: More Than Half of SMAN 1 Yogyakarta Graduates Become UGM Freshmen

More than half of this year's graduates from SMAN 1 Yogyakarta have been accepted at Universitas Gadjah Mada, though the number has declined compared to last year. School officials attribute the shift to students increasingly prioritising specific study programmes over university prestige, with more graduates now choosing institutions such as UI, ITB, ITS, UB and Unair.

Mataram City Government Receives Rp10.8 Billion Injection, Ensures Civil Servant Salaries Are Secure

The Mataram City Government has received Rp10.85 billion in central government transfer funds to cover civil servant salary shortfalls. The funds ensure salary payments for civil servants and government contract workers are secure until the end of 2026. Mataram was previously among hundreds of regional governments facing financial difficulties in paying employee salaries.

Foreign Net Buy of Rp933 Billion Driven by Single Large Transaction

Foreign investors recorded a net buy of Rp933.5 billion in the Indonesian stock market on Wednesday, but the figure was heavily skewed by a single Rp1.47 trillion transaction in PT Dian Swastatika Sentosa Tbk (DSSA). Excluding the DSSA negotiation-market deal, foreign investors actually posted a net sell of approximately Rp539.5 billion. The data suggests underlying foreign selling pressure persisted despite the headline net buy figure.

Riau Forest Fires Not Yet Extinguished, 14 Hectares of Land in Rimbo Panjang and Pagaruyung Burned

Forest and land fires in Kampar Regency, Riau, continue to burn, with approximately 14 hectares affected across two villages. Firefighting teams from Manggala Agni and the military are working to control the blazes in Rimbo Panjang and Pagaruyung. The operation aims to prevent the fires from spreading further amid ongoing land and forest fire management efforts in the region.

Crime roundup: Roy Suryo pretrial motion to counterfeit stamp duty case

A roundup of criminal and security incidents in Jakarta on Wednesday (19/8), including a pretrial motion filed by Roy Suryo and a counterfeit stamp duty case with potential state losses of up to Rp1.03 trillion. Police also handled a naked intoxicated student who assaulted a motorist and released 21 people detained during a protest.

Demak's Babon River Polluted by Years of Illegal Septic Tank Waste Dumping

The Babon River in Demak, Central Java, has been polluted for years by septic tank trucks illegally dumping faecal waste on its banks. Local authorities say the practice persists despite warnings and patrols, as operators avoid paying fees at official treatment plants. Water tests have confirmed organic pollution exceeding quality standards.

Prabowo Targets Rp200 Trillion State Budget Efficiency Through Digitalisation of Social Assistance

The Indonesian government is implementing a digital system for social protection programmes to ensure social assistance reaches the right recipients. The Head of the Government Communication Body, Muhammad Qodari, stated that digitalisation could save the state budget by up to Rp200 trillion. The initiative aims to address inclusion and exclusion errors that currently affect nearly half of all social assistance distribution.

Trump Announces 'Most Crippling' Economic Sanctions Against Iran

US President Donald Trump has announced what he describes as the most crippling economic operation ever imposed on any nation, targeting Iran following failed military efforts to subdue the country. The measures include severe warnings to any country providing financial or logistical assistance to Iran. Trump framed the move as an 'Economic D-Day' and called on allies to join the US in isolating Iran.

Jakarta round-up: Free fun run for Independence Day and clean water disruption in Thousand Islands

A series of events marked Jakarta on Wednesday, including a free fun run to celebrate Indonesia's 81st Independence Day and an apology from the Thousand Islands regent over disruptions to a seawater reverse osmosis facility. The round-up also covers preparations for public information transparency monitoring and fire prevention efforts in densely populated areas.

Gold Price Surges 4.3% in a Day to US$4,500

Gold prices soared more than 4% to their highest level in over two and a half months after the US Treasury unexpectedly boosted liquidity support for long-term bonds. The rally was driven by falling Treasury yields and a weaker dollar, with analysts pointing to renewed investment inflows and stagflation concerns. Silver also rose 4.3% to US$66.03.

House Member Urges Finance Ministry to Disburse Rp 290 Billion for Kalimantan Forest Fire Handling

A member of the House of Representatives has called on the Finance Ministry to immediately release Rp 290.9 billion in operational funds to tackle forest and land fires in Kalimantan. The lawmaker also demanded firm law enforcement and proposed centralising fire management under a single agency, namely the Ministry of Forestry. He highlighted the cross-border haze impact on Singapore and the closure of schools in West Kalimantan due to deteriorating air quality.

CIER: Indonesia an attractive market for Taiwanese companies

Taiwan's Chung-Hua Institution for Economic Research says Indonesia's large market and strategic position in ASEAN make it an attractive destination for Taiwanese business expansion. CIER researchers highlight opportunities in food, energy, power grids, automotive components and health-related products, while noting challenges around environmental and labour standards. Indonesia recorded a trade surplus of US$80 million with Taiwan in January-April 2026.

Residents of Banjarbaru, South Kalimantan Cry Out as Forest and Land Fire Haze Engulfs Them

Residents of Liang Anggang in Banjarbaru, South Kalimantan, are suffering from severe respiratory distress as thick smoke from forest and land fires blankets the area. Visibility has dropped to around three metres, causing traffic congestion and accidents, while air quality has reached hazardous levels. The Meteorology, Climatology and Geophysics Agency has urged people to limit outdoor exposure and wear masks.

Slippery Road in Kramat Jati Claims Lives, Jakarta Governor Orders Immediate Repairs

A slippery stretch of Jalan Raya Bogor in front of Kramat Jati Market, East Jakarta, has caused two fatal accidents in less than a month, prompting urgent government intervention. Jakarta Governor Pramono Anung has ordered the road surface to be repaired, while the East Jakarta administration plans to relocate street vendors and require fish traders to contain water runoff. The incidents have highlighted long-standing safety and congestion problems along the busy corridor.

Badung Prepares 42 Hectares of Land for Chillies, Targets 420 Tonnes Production

The Badung Regency Agriculture and Food Agency is preparing 42 hectares of land for phased chilli planting from this month until December 2026 to secure supply and prevent shortages during the rainy season. The programme spans three districts—Mengwi, Abiansemal, and Petang—with a production target of 10 tonnes per hectare. The local government has arranged a purchase scheme through the regional public company Perumda Pasar dan Pangan Giri Mangu Sedana to stabilise farm-gate prices.

Facing ASN Salary Payment Constraints, 18 Central Java Regencies/Cities Receive Additional Funds

Eighteen regencies and cities in Central Java have received an additional Rp268 billion in General Allocation Funds (DAU) and Revenue Sharing Funds (DBH) from the central government to help cover civil servant salaries and allowances. The disbursement follows regional governments' appeals amid fiscal pressures, including cuts to regional transfer funds exceeding Rp11 trillion in 2026. Officials hope the additional funds will resolve payment difficulties for all state civil apparatus across the province.

Obstacles to Developing Pineapple Village Using Used Water Gallons in Seyegan, Sleman

A youth-led initiative in Seyegan, Sleman, sought to turn Padukuhan Barak into a jumbo pineapple village using used water gallons as planting media. Despite initial government support and free seedlings, the programme has struggled to become a source of income because residents prefer to consume the harvest themselves and find the year-long wait for pineapple fruit too long compared to faster crops like chillies.

Dollar Falls, BI Holds Interest Rate: Hope for JCI - Rupiah Celebrates

Bank Indonesia has kept its benchmark interest rate at 5.75% for a third consecutive month, aiming to stabilise the rupiah and keep inflation within target amid global uncertainty. The decision comes as US Treasury yields retreat, offering some relief to equity markets. Investors are also watching signals from the Federal Reserve, which has not ruled out further rate hikes if inflation persists.

Pertamina strengthens commitment to protecting marine ecosystem in Sulawesi waters

PT Pertamina Trans Kontinental has planted 512 coral fragments in North Sulawesi waters as part of its environmental and social responsibility programme. The initiative, held to mark Indonesia's 81st Independence Day, involved Pertamina divers, local divers, and environmental NGO SeaSoldier. The company says the coral transplantation aligns with ESG principles and sustainable development goals.

Indonesian Navy reinforces ASEAN maritime security at 20th ANCM

The Indonesian Navy has reaffirmed its commitment to regional maritime security through its participation in the 20th ASEAN Navy Chiefs' Meeting, held in August 2026. The summit focused on strengthening collaborative frameworks to address strategic challenges and safeguard Southeast Asian waters. Navy Chief Ali also held bilateral meetings with regional counterparts to advance naval diplomacy and mutual security cooperation.

Ruteng, Manggarai, NTT Shaken by Dozens of Earthquakes This Morning, Largest at M 5.6

A series of dozens of earthquakes struck Ruteng in Manggarai Regency, East Nusa Tenggara, with the strongest tremor this morning recorded at magnitude 5.6. The Meteorology, Climatology and Geophysics Agency (BMKG) confirmed there was no tsunami potential. Tremors were felt at MMI scale III-IV in the surrounding area.

Turkey Could Have F-35, KAAN, and Eurofighter Simultaneously: How Strong Would Its Military Be?

Turkish-American organisations are lobbying the US Congress to lift CAATSA sanctions and allow the sale of F-35 stealth fighters to Turkey, arguing it would strengthen NATO cohesion and regional stability. Israel has voiced strong opposition, with Prime Minister Benjamin Netanyahu warning that providing F-35s to Ankara would destroy the balance of power in the Middle East. The debate comes amid rising Turkey-Israel tensions over Syria, where both countries are increasingly competing for strategic influence.

Indonesia prepares new growth engines to target 8 percent GDP growth

The Indonesian government is accelerating industrial downstreaming, SOE consolidation, and financial sector reforms to sustain economic momentum and pursue an 8 percent GDP growth target. Key initiatives include 26 priority downstreaming projects, a national bullion bank, and the restructuring of state-owned enterprises, which has already lifted SOE profits by 75.3 percent. Ten strategic transformations for 2027, ranging from healthcare and education upgrades to a national mineral exchange and dual citizenship policy, are intended to create new sources of growth and improve competitiveness.

Mercedes-Benz re-enters taxi business as BYD begins to make inroads

Mercedes-Benz is reversing its earlier withdrawal from the German taxi market, offering steep discounts to operators as it seeks to slow BYD's expansion into the sector. The German marque's share of new taxi registrations has begun to recover, though Volkswagen still dominates the market. BYD is targeting four-digit taxi sales in Germany by 2027, aided by competitive pricing and the shift towards zero-emission taxis in cities such as Hamburg.

Europe Prepares Sanctions Against Ben Gvir for Suggesting Dozens of Gazans Be Killed Every Night

German Chancellor Friedrich Merz has strongly condemned Israeli National Security Minister Itamar Ben-Gvir for calling for dozens of Palestinians in Gaza to be killed every night, describing the remarks as inhumane and a violation of international law. The European Union is preparing sanctions against Ben-Gvir, with EU foreign ministers set to discuss the matter at an upcoming informal Gymnich meeting. France has already banned Ben-Gvir from entering the country, joining more than ten other nations that have imposed similar entry bans.

Iran Threatens Gulf Arab States with Harsh Ultimatum over US Military Assistance

Iran's armed forces have issued a stark warning to Gulf states against providing any assistance or facilities to the US military, equating such support with participation in American military operations. The threat comes amid escalating regional conflict and follows the UAE's suspension of all economic ties with Iran. Diplomatic efforts to reopen the Strait of Hormuz have reportedly collapsed, with Washington maintaining a naval blockade.

Mental Health Concerns for USS Abraham Lincoln Crew After 200 Days at Sea

The mental wellbeing of around 5,000 personnel aboard the USS Abraham Lincoln has become a focus of concern after the carrier spent roughly 240 days at sea without a long break. Admiral Brad Cooper acknowledged the 'very challenging and heavy' conditions during a visit, while reports cited damaged water systems, sanitation problems, and limited shore leave. The issue has drawn attention in Washington, with Democratic senators seeking answers from Defence Secretary Pete Hegseth.

Kertajati fighter jet MRO hub to boost defense self-reliance

Indonesia is developing Kertajati Airport as a maintenance, repair, and overhaul hub for military aircraft, beginning with C-130 Hercules transports and later expanding to fighter jets. The initiative aims to strengthen national defence self-reliance by reducing foreign dependency and promoting technology transfer through domestic firms such as GMF and PT Dirgantara Indonesia.

Deadline for National Regional Innovator Award Tomorrow, Register Now!

The nomination window for the DPD RI Awards 2026 closes tomorrow, Friday 21 August 2026, at 23:59 WIB. The awards recognise inspirational figures from Yogyakarta and across Indonesia in education, health, food security, and arts and culture. The Regional Representative Council hopes the initiative will highlight grassroots contributions to national development.

Central Lombok Regency Targets Poverty Reduction to 10.30 Percent

The Central Lombok Regency government aims to reduce its poverty rate from 10.68 percent in 2025 to 10.30 percent in 2026. The administration is implementing a 'three-door' strategy focusing on reducing household expenditure, increasing incomes, and improving basic services. Deputy Regent HM Nursiah emphasised that the programme should deliver tangible impacts rather than merely statistical improvements.

Baznas and BKKBN Encourage Zakat to Become a Driver of Family Economy

Indonesia's National Zakat Agency (Baznas) and the Ministry of Population and Family Development/BKKBN are expanding the Zakat Community Development (ZCD) programme to improve the welfare of beneficiary families. The initiative uses zakat, infak, and sedekah funds to promote economic independence, reduce stunting, and strengthen family resilience. The programme has already distributed Rp1.391 billion to 23 groups, with plans to expand to 11 districts/cities across eight provinces.

Israeli Military Finally Admits Killing Hind Rajab

The Israeli military has admitted to shooting at the car carrying six-year-old Hind Rajab in Gaza in January 2024, after previously denying involvement. The admission follows an investigation and has prompted Israeli authorities to announce a review of the case. Hind Rajab became a global symbol of Palestinian suffering during the Gaza conflict.

Truck Attendant in Lampung Dies After Being Run Over While Sleeping Under Lorry, Driver Arrested

A lorry driver in Bandar Lampung has been arrested after allegedly running over his own attendant, who was sleeping beneath the vehicle. The victim's body was discovered on Tuesday morning beside Jalan Soekarno-Hatta, and the driver fled the scene before being tracked down and detained in Natar. Police said the driver claimed he was unaware the attendant was under the lorry when he drove off.

Judges Acquit Two Defendants in MXGP Samota Circuit Land Corruption Case in NTB

A panel of judges at Mataram District Court has acquitted two defendants from a public appraisal firm in a corruption case involving land procurement for the MXGP Samota circuit in Sumbawa, West Nusa Tenggara. The court ruled that while the alleged acts were proven, they did not constitute a criminal offence. A former head of the local land agency was separately sentenced to 15 months in prison for abuse of authority.

Humaniora roundup: Proposed 2027 Hajj costs and NTT earthquake victim update

The government has proposed an average Hajj pilgrimage cost of Rp107.34 million for 2027, while the Ministry of Hajj and Umrah plans to revalidate around 400,000 potentially invalid queue records. Meanwhile, the death toll from the NTT earthquake has risen to 71, with medical supplies confirmed sufficient for five days and aftershocks expected to subside within three to four weeks.

Indonesian Army dispatches hospital ship with 70 tons of NTT quake aid

The Indonesian Army has deployed a logistics vessel carrying 70 tons of food, emergency infrastructure, and medical personnel to assist communities affected by the earthquake in East Nusa Tenggara. The ship, which departed from Tanjung Priok, is equipped with hospital facilities and will remain offshore for 20 days to provide free healthcare services. The aid package includes essential provisions, water tanks, generators, tents, and folding beds to support displaced residents.

Downstreaming Drives Investment and Strengthening of Indonesia's Metal Industry

Indonesia's downstreaming agenda is attracting significant investment in the metal sector, with basic metals, machinery and equipment recording US$8.44 billion in the first half of 2026. The GIFA and METEC Indonesia 2026 exhibitions will bring together global technology providers and local industry players to support the country's shift from raw resource exports to integrated manufacturing. Bauxite downstreaming investment reached US$2.25 billion in the second quarter, surpassing nickel and rising 193 percent year-on-year.

5 Warren Buffett Principles for Building Wealth

Warren Buffett's Berkshire Hathaway has significantly increased its stake in Alphabet, making it the company's third-largest equity investment. The move underscores Buffett's enduring investment philosophy of seeking long-term value. The article also outlines five practical wealth-building principles from Buffett that are applicable to everyday investors.

BMKG forecasts cloudy weather in most major cities on Thursday

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has forecast predominantly cloudy conditions across most of the country on Thursday, with light rain possible in several areas. The agency also warned of potential moderate to heavy rain linked to a tropical cyclone seed near Hainan, China. Residents are advised to monitor official BMKG channels for weather updates.

2026 Economic Census: BPS Finds Many New Businesses in Klungkung

The Central Statistics Agency (BPS) has identified a significant number of new businesses in Klungkung Regency, Bali, during the 2026 Economic Census, with data collection progress reaching 110.09 percent. The increase is largely attributed to the inclusion of online businesses, which were not recorded in previous censuses. BPS is conducting final sweeps until 31 August to ensure complete coverage, aided by a fully digital data collection system.

Deadly Outbreak Surpasses 5,000 Cases: Uncontrolled and No Cure Available

The Ebola outbreak in the Democratic Republic of Congo has exceeded 5,000 confirmed cases, making it the largest in the country's history and the second-worst globally. Health officials warn that response efforts have failed to contain the disease, which has claimed 2,378 lives. The outbreak, caused by the Ebola Bundibugyo species, has no approved vaccine or treatment.

Business Prospects Get Brighter, Mitsubishi And Toyota Compact Increase Investment In Indonesia

Indonesia's Minister of Industry announced that Mitsubishi and Toyota have committed to invest a combined IDR 37.1 trillion in the country between 2022 and 2026. Mitsubishi will allocate IDR 10 trillion to make Indonesia a production base for hybrid cars and expand exports, while Toyota will add IDR 27.1 trillion over five years. The government is urging both manufacturers to increase local component usage, particularly from small and medium industries, and to accelerate electric vehicle production.

President Prabowo invites 81st Independence Day ceremony officers to Hambalang

President Prabowo Subianto hosted all officers involved in the 81st Indonesian Independence Day ceremony at his private residence in Hambalang, Bogor, to express his appreciation. He thanked the Paskibraka members, ceremony commanders, pilots, paratroopers, and performers for their dedication. The President urged them to maintain their spirit of togetherness and pride as they continue contributing to the nation.

100 Killed in Landslide at Illegal Gold Mine in Central African Republic

A landslide at an illegal gold mine in the Central African Republic has reportedly killed around 100 people. The incident occurred at the Zamboye site near Baboua, where collapsing underground tunnels buried miners working below. Local officials say it remains difficult to confirm the official death toll as investigations continue.

Messages and Hopes of Ordinary NU Members for the 35th NU Congress in Jombang

As Nahdlatul Ulama enters its second century, the organisation is urged to remain anchored in its foundational values while adapting to modern challenges. The article outlines five key areas of focus for the upcoming 35th Congress, including returning to core principles and addressing global and digital-era challenges. The author emphasises that NU's growing responsibility requires balancing tradition with innovation to serve both national and global communities.

Realising a More Substantive Independence

As Indonesia marks 81 years of independence, the article reflects on the meaning of freedom beyond political sovereignty. It calls for gratitude to be expressed through concrete service, addressing persistent poverty, inequality, and digital-era challenges while urging sustainable development and intergenerational responsibility.

Central Sulawesi Police Destroy 157,308 Obsolete Vehicle Registration Materials

The Traffic Directorate of the Central Sulawesi Regional Police has destroyed 157,308 obsolete state-owned vehicle registration and identification materials. The items, which included driving licences, vehicle mutation forms and validation stickers, were no longer in use. The destruction was carried out in Palu as part of proper state asset management.

Five Years the World Chose Silence

Five years after the Taliban seized Kabul, the systematic erasure of Afghan women from public life has deepened, yet global attention has largely faded. The article argues that international human rights norms have proven toothless when geopolitical interests are absent, leaving Afghanistan's crisis documented but ignored.

High Prices Blamed as Fried Grasshopper Seller Pads Jars with Cardboard

A fried grasshopper vendor in Gunungkidul, Yogyakarta, has gone viral after a tourist complained that the jars were padded with cardboard to appear fuller. The local tourism office investigated and found the seller admitted to the practice, citing soaring grasshopper prices of Rp 500,000 per kilogram. Authorities have advised the vendor to use appropriately sized packaging and include net weight information.

Rowing for Independence in a Sea of Geopolitics

Indonesia's independence is no longer about ending colonial rule but about maintaining strategic autonomy in an increasingly multipolar world. The article argues that the country's diplomacy, rooted in values-based 'metadiplomacy' and strategic self-reliance, allows it to navigate between competing global powers without being dictated to. By engaging with ASEAN, BRICS, the OECD and the Global South, Indonesia is expanding its room for manoeuvre rather than choosing sides.