Indonesian Political, Business & Finance News

Archive: 21 August 2026

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Indonesian Embassy in Bern supports Kadin-Suissenegoce partnership to train trade human resources

The Indonesian Embassy in Bern has backed a partnership between the Indonesian Chamber of Commerce and Industry (Kadin) and Swiss commodity trading association Suissenegoce to develop national human resources in global commodity trading. The agreement, signed in Geneva, marks 75 years of Indonesia-Switzerland bilateral relations and follows high-level ministerial visits. The programme will offer certified training in Jakarta to private and state-owned enterprises to boost export revenues.

Logging traces found amid forest and land fires in Batang Hari

Forest and land fires in Tenam, Batang Hari Regency, Jambi, entered their second day on Friday, with around four hectares already burned. Firefighters from Manggala Agni and TNI soldiers discovered charred remains of felled timber at the site, indicating logging activity had occurred before the blaze. Authorities have not yet established whether the logging is linked to the cause of the fires.

Indonesian Embassy in Dakar pushes stronger ASEAN-West Africa partnership

The Indonesian Embassy in Dakar led ASEAN diplomatic missions in Senegal in commemorating the bloc's 59th anniversary, using the occasion to advance strategic cooperation with West Africa. The event brought together Senegalese ministers and representatives of ASEAN dialogue partners to agree on priority areas including capacity-building, technology exchange, and stronger economic ties.

Canada-US intensify trade talks ahead of tariff deadline

Canada and the United States are racing to finalise a trade agreement before a midnight deadline that would see 50 percent tariffs imposed on C$30 billion worth of Canadian goods. Negotiators are reportedly close to a deal that would halve US tariffs on Canadian steel and aluminium to 25 percent. Canada must address US concerns over automotive taxes, dairy market access, and provincial bans on American alcohol sales.

El Nino impact: Panama Canal reduces daily ship transits

The Panama Canal Authority will cut daily vessel transits in two stages from September due to low rainfall and a potentially severe El Nino, raising concerns over water availability. The restrictions come as global shipping already faces disruption from the war in Iran, which has sharply reduced traffic through the Strait of Hormuz. The canal is a vital route for international trade, connecting the Atlantic and Pacific oceans.

North Tapanuli DPRD Urges Regional Government to Disclose Regional Transfer Fund Details in Revised Budget Talks

Members of the North Tapanuli Regional House of Representatives (DPRD) are pressing the district government to disclose the allocation of Regional Transfer Funds (TKD) during discussions on the 2026 Revised Regional Budget. Lawmakers argue that transparency is essential for the council to carry out its oversight function, particularly given that parts of the region are still recovering from disasters. The government has cited a Home Affairs Ministry circular as the basis for its handling of the funds, but councillors insist the details must be presented before the revised budget is approved.

KPK Displays Evidence of Hundreds of Millions in Cash During Sting Operation Against Unsoed Rector and Others

Indonesia's Corruption Eradication Commission (KPK) has presented evidence of approximately Rp665 million in cash and Rp99 million in bank balances seized during a sting operation targeting the Rector of Jenderal Soedirman University and five other suspects. The case involves alleged extortion and gratification in the university's independent student admission process. The KPK has detained all six suspects for an initial 20-day period.

Asbanda: Role of Regional Development Banks Must Be Strengthened as Pillars of Regional Development

The Association of Regional Development Banks (Asbanda) is urging the government to strengthen the role of Regional Development Banks (BPD) as key drivers of regional economic development. Chairman Agus Haryoto Widodo called for a level playing field, noting that BPD liquidity is closely tied to regional fiscal cycles and government fund transfers. With combined assets exceeding Rp1,000 trillion, Asbanda is pushing for digital transformation and policy changes to enhance BPD competitiveness and regional financial resilience.

Unsoed Vice-Rector Extorted Rp 650 Million from Medical Faculty Fresher's Parents, but Student Still Failed

The Corruption Eradication Commission (KPK) has named the Rector and Vice-Rector III of Universitas Soedirman as suspects in an alleged extortion case involving new student admissions. The Vice-Rector allegedly demanded Rp 650 million from the parents of a prospective medical faculty student, but the student was ultimately not accepted. The case has expanded to include six suspects, including university staff and private intermediaries.

Pamekasan Regency Government deploys six tanker trucks for clean water aid

The Pamekasan Regency Government in East Java has deployed six tanker trucks to distribute clean water to drought-affected villages this dry season. A total of 82 villages across 11 sub-districts are experiencing water shortages, an increase from 76 villages in 2025. The government is also drilling wells in cooperation with the central government through the PAMSIMAS programme.

Unsoed sting operation: KPK names rector and five others as suspects

Indonesia's Corruption Eradication Commission (KPK) has named the rector of Jenderal Soedirman University and five other individuals as suspects in an alleged corruption case involving new student admissions. The suspects include senior university officials, private parties, and a relative of the rector. They have been detained for an initial 20-day period following a sting operation in Purwokerto and Jakarta.

Tourism Ministry Releases 2025 Statistics for Ten Priority Tourism Destinations

Indonesia's Tourism Ministry has published its 2025 statistics for ten priority and three regenerative tourism destinations under the One Data Indonesia policy. The report tracks arrivals, investment, employment, and regional economic output, with Bali recording 7.04 million foreign visitors and Greater Jakarta attracting IDR 23.74 trillion in tourism investment. Officials say the standardised data will guide more effective, evidence-based tourism policy and ensure public spending delivers measurable economic benefits.

MSME Minister Encourages Online Motorcycle Taxi Drivers to Become Micro-Entrepreneurs, Here Are the Business Opportunities

Indonesia's Minister for Micro, Small, and Medium Enterprises, Maman Abdurrahman, is urging online motorcycle taxi drivers to be recognised as micro-entrepreneurs in the transport sector, framing the move as part of a 'levelling up' concept that expands opportunities rather than requiring drivers to abandon their profession. The initiative highlights collaboration with platforms such as GrabAcademy, with data showing thousands of drivers transitioning into food merchants, four-wheeled services, and creative roles. The minister stressed that while stakeholders can open access to learning and business development, individual initiative remains key to progress.

Minister Pigai urges acceleration of human rights protection regulation discussions

Human Rights Minister Natalius Pigai has called for faster processing of proposed regulations to strengthen his ministry's authority in protecting and fulfilling human rights. He argues that without clear legal foundations, the ministry cannot take concrete action such as sanctioning companies or providing humanitarian assistance. The proposals have been submitted to the House of Representatives, the State Secretariat Ministry, and the Law Ministry.

Kowani strengthens food security with first sorghum harvest in Bogor

The Indonesian Women's Congress (Kowani) has harvested its first sorghum crop in Bogor as part of efforts to bolster national food security. The initiative aims to integrate production, processing, women's empowerment, and market access, with plans to develop value-added products such as rica roa chilli paste for export to Singapore and Malaysia.

KPK Detains Unsoed Rector as Suspect in Student Admission Extortion Case

The Corruption Eradication Commission (KPK) has detained the Rector of Jenderal Soedirman University and five others for 20 days over alleged extortion and gratification in the university's independent student admission process. The suspects are accused of imposing additional fees beyond the official tuition and institutional development charges, placing a heavy burden on prospective students. The KPK seized approximately Rp665 million in cash and Rp99 million in bank balances during the operation.

KUA-PPAS amendment agreed, Bobby calls for accelerated development

North Sumatra Governor Bobby Nasution has urged faster implementation of physical and non-physical development projects after the provincial government and DPRD agreed on the KUA-PPAS amendment to the 2026 provincial budget. The agreement was formalised during a plenary session, with Bobby emphasising the need to avoid year-end bottlenecks. He is currently conducting field inspections across the province, including the Nias Islands, to ensure programmes remain on track.

RI reaffirms accelerated response to NTT quake, Kalimantan wildfires

The Indonesian government is intensifying its response to the NTT earthquake and Kalimantan wildfires, with ministers monitoring developments and Rp44 billion disbursed for earthquake relief. Fire suppression efforts have been prioritised due to El Niño conditions, with over 12,800 personnel deployed across Kalimantan to protect economic activity. Additional funding remains possible as authorities continue to evaluate conditions on the ground.

IMI DKI chairman candidate wants Jakarta to become national motorsport barometer

Rudy, a candidate for chairman of the Indonesian Motor Association (IMI) DKI Jakarta, has outlined plans to make Jakarta the national barometer for motorsport through high-standard events and sustainable athlete development. His proposals include building a semi-permanent circuit in Jakarta, possibly at JIS or PIK, in cooperation with the DKI Jakarta provincial government. Rudy's candidacy is supported by several prominent figures in the Indonesian motorsport community.

Shifana evaluates her team still playing too hastily

Indonesia's U-16 women's national team player Shifana Rizka Nadhifa has assessed that her side played too hastily in possession and finishing during their 3-0 semi-final victory over Jordan in the Srikandi Merdeka Cup 2026. Despite having a numerical advantage after Jordan were reduced to ten players, the team failed to add more goals due to a lack of simplicity in their play. Indonesia will face Thailand in the final on Sunday, with coach Timo Scheunemann viewing the match as a valuable test against a country with a strong women's football ecosystem.

Faunaland and Vantara Drive Improved Animal Welfare at Bandung Zoo

Faunaland, the new operator of Bandung Zoo, hosted a delegation from India's Vantara to review animal welfare and exchange conservation expertise. The visit included a veterinary assessment of Salma, a Sumatran elephant, and discussions on nutrition, habitat management and modern zoo practices. Faunaland aims to develop Bandung Zoo as a modern urban conservation and education space while strengthening its collaboration with Vantara.

Bandung Swelters: BMKG Explains Causes of Hot, Humid Weather

The Meteorology, Climatology and Geophysics Agency (BMKG) in Bandung has attributed the recent hot and humid conditions in Greater Bandung to local convective cloud growth and warm sea surface temperatures. Maximum temperatures reached 32 degrees Celsius, with humidity levels between 55 and 80 percent. Authorities have urged residents to remain vigilant during the dry season, particularly against land fires and drought, as over 400 sub-districts in West Java face water shortages.

Indonesia's Biochar Industry Urged to Strengthen Quality Standards and Certification

The Indonesian Biochar International Association (ABII) and IDSurvey have signed a memorandum of understanding to develop national biochar standards, laboratory infrastructure, and certification schemes. The collaboration aims to support the growth of the biochar industry, carbon removal, and climate-smart agriculture in Indonesia. Demand for Indonesian biochar is rising from markets including Japan and Saudi Arabia, making credible quality assurance essential for international competitiveness.

Jajar Village Strengthens Maize Downstreaming and Tourism Development

Jajar Village in Trenggalek, East Java, is advancing maize downstreaming and village tourism through a collaboration with UPN 'Veteran' Jawa Timur and Universitas Tulungagung. The third year of the government-backed village empowerment programme introduces popcorn and jenang maize processing technology to add value to raw maize sales. The initiative also expands tourism packages targeting school students after previous packages doubled visitor numbers.

Central Java and BSSN strengthen collaboration to improve cyber security

The Central Java Provincial Government is strengthening its collaboration with the National Cyber and Crypto Agency (BSSN) to enhance cyber security and support the implementation of digital government. Regional Secretary Sumarno emphasised that cyber security is a key challenge requiring joint efforts and broader stakeholder involvement. The partnership is expected to extend beyond the provincial level to include district and city governments across Central Java.

Unsoed Rector Akhmad Sodiq and Vice Rector Named Suspects After KPK Sting Operation

The Corruption Eradication Commission (KPK) has named six suspects, including the rector and a vice rector of Jenderal Soedirman University, following a sting operation related to alleged extortion and gratification in the university's independent student admission process. The suspects are accused of imposing additional fees beyond the official tuition and institutional development charges, which placed a heavy burden on prospective students. The KPK has detained the suspects and expressed concern that corruption in the education sector undermines fairness and public trust in academic institutions.

Pati Mass Organisations Hold Joint Prayer, United in Maintaining Public Order

Various mass organisations in Pati Regency held a joint prayer and issued a collective statement calling for peace, security, and dignity in the region. The gathering emphasised commitment to constitutional expression of opinions while rejecting provocative, anarchic, or unethical actions that could divide society. Participants also urged residents to prioritise dialogue, respect the law, and avoid being provoked by unverified information.

KPK Names Unsoed Rector and Vice Rector as Suspects in New Student Admission Bribery Case

The Corruption Eradication Commission (KPK) has named six suspects, including the rector and a vice rector of Universitas Jenderal Soedirman, in an alleged extortion scheme linked to new student admissions. The suspects are accused of demanding payments, reportedly amounting to hundreds of millions of rupiah, to secure places at the university's medical faculty. All six have been detained for an initial 20-day period.

"Hikayat Srikandi Nusantara" presented at Sabang Merauke Performance

The Sabang Merauke Performance titled "Hikayat Srikandi Nusantara" was held at Indonesia Arena in Jakarta, showcasing a colossal arts production that highlights the role of women and Indonesia's cultural heritage. The performance featured folk tales from across the archipelago, traditional textiles, dance and music, involving around 1,700 artists. Organisers hope the production can become a cultural tourism attraction for both domestic and international visitors.

Kaltara Police Chief strengthens TNI-Polri synergy on Malaysia border

North Kalimantan Police Chief Inspector General Agus Wijayanto has emphasised the importance of solid coordination between the Indonesian military and police in securing the Indonesia-Malaysia border. During a visit to border security personnel in Malinau, he highlighted the need for strong synergy to maintain stability and anticipate illegal cross-border activities. The visit included the handover of basic food packages and sports equipment as a show of support for troops serving in the frontier region.

Terang AI: Indonesian AI Has Ample Room to Grow, Especially in Education and Human Resources

Terang AI's Chief Product Officer Alfian Firmansyah has stated that artificial intelligence in Indonesia still has significant room for growth, particularly in the education and human resources sectors. Speaking at INTI ASIA 2026 in Jakarta, he emphasised that AI adoption must move beyond innovation to deliver practical solutions that are easy for companies and institutions to implement. The company showcased several business-to-business AI products at the event, including an AI Learning Management System, AI Candidate Interview, and AI Event Management.

Police Investigate Two Foreign Nationals for Sock Theft in Kerobokan, Badung

Police in Badung, Bali, are investigating the alleged theft of socks by two foreign nationals at a shop in Kerobokan Kelod. The incident, captured on CCTV, occurred on 16 August 2026 but only gained widespread attention after video circulated on social media. Authorities are coordinating with the Ngurah Rai Immigration Office to track down the suspects.

Full-time PPPK Teachers in Bandung Appreciate CPNS Selection Opportunity, but Question the Mechanism

A full-time government contract teacher (PPPK) in Bandung has welcomed the government and DPR's decision to allow PPPK teachers to participate in the 2027 civil servant (CPNS) selection. However, he expressed uncertainty about the selection mechanism, including whether PPPK teachers would be automatically appointed or still need to undergo testing. He also raised concerns about age limits and the large number of existing PPPK teachers nationwide.

Fire at Jakarta Bapenda Building, Fire Department: Small Flames Due to Hot Weather

A small fire broke out at the Jakarta Regional Revenue Agency (Bapenda) building on Friday evening, with the fire department attributing the incident to hot weather conditions. Smoke was visible from the lobby area around 5 p.m. local time, but no significant flames were observed by witnesses. Fire crews responded quickly and remained on site until approximately 9 p.m., with the smoke having dissipated by 9:55 p.m.

North Kalimantan Police deploy 40 personnel to tackle forest and land fires

The North Kalimantan Regional Police's Samapta Directorate has deployed 40 personnel to combat forest and land fires in Bulungan Regency. The team is working to extinguish fires across three locations covering approximately four hectares, facing difficult terrain and limited water access. Police are coordinating with local residents to monitor affected areas and prevent the fires from spreading further.

Indonesian Air Force deploys CASA aircraft to strengthen weather modification in West Kalimantan

The Indonesian Air Force has deployed a CASA A-2117 aircraft from Squadron 4 to support weather modification operations aimed at tackling forest and land fires in West Kalimantan. The aircraft, brought in from Abdulrachman Saleh Air Base in Malang, will be used for cloud seeding to increase rainfall. The move is part of an integrated effort involving air patrols, water bombing and inter-agency coordination to prevent and control fires.

Residents Scramble for Blanket Aid at Nagekeo Evacuation Post

Displaced residents at the Berdikari Danga field in Nagekeo, East Nusa Tenggara, scrambled for blankets distributed by the National Disaster Management Agency (BNPB) on Friday night, having waited five days for such supplies. Evacuees expressed relief at receiving blankets and mats, but noted that basic needs such as clean water, baby nappies and milk remain unmet. They urged the government to continue paying attention to their needs following the earthquake.

Ukhuwah Savings Grow 356.95 Percent, Himbarsi Expands Sharia Rural Bank Business

The Ukhuwah Savings programme developed by the Indonesian Sharia Rural Banks Association (Himbarsi) has recorded significant growth since its 2022 launch, with accounts reaching 55,908 and total funds of Rp417.8 billion by July 2026. Himbarsi is using this momentum to expand joint products and strengthen fund collection through five new partnerships agreed at its 2026 national coordination meeting in Solo. The partnerships involve three sharia commercial banks, a sharia insurance company, and a precious metals vendor.

BPBD: Forest and Land Fires on Mount Arjuno-Welirang Successfully Extinguished

Forest and land fires that swept through the Raden Soerjo Grand Forest Park on Mount Arjuno-Welirang in East Java have been fully extinguished, according to the provincial disaster mitigation agency. Ground teams continue to patrol for residual embers, while aerial water bombing was hampered by thick fog. Hiking routes in the conservation area remain closed until further notice.

KAMMI Rejects 27 August Protest Plan: For the Sake of Public Order

The Indonesian Muslim Student Action Union (KAMMI) has publicly rejected a planned protest by the Pati United Community Alliance (AMPB) at the DPR RI building on 27 August 2026. KAMMI argues the demonstration risks provoking unrest and threatening state symbols, urging all parties to prioritise public order and national unity. The organisation also called for national focus to shift towards humanitarian missions amid ongoing disasters in NTT and Kalimantan.

High Gold Investment Interest Means Bullion Ecosystem Has Potential to Keep Growing

Indonesia's bullion ecosystem is expanding rapidly, with gold banks managing around 153 tonnes of gold worth Rp360 trillion since their 2025 launch. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted strong public demand for gold as a safe-haven asset and the government's push to develop gold-based investment instruments such as ETFs.

Badung DLHK Confirms Dozens of Incinerators Fully Operational After Passing Emission Tests

The Badung Regency Environmental and Hygiene Agency (DLHK) has confirmed that all 12 incinerator units at its waste processing sites are back in full operation after passing emission tests required by the Ministry of Environment's law enforcement division. The machines had previously been sealed but have now received approval to resume operations. The agency says all emission parameters met the required quality standards.

KAMMI urges AMPB protest at DPR to stay within legal boundaries

The Indonesian Muslim Student Action Union (KAMMI) has called on the Pati United Community Alliance (AMPB) to avoid provocation and actions outside the law ahead of its planned protest at the House of Representatives (DPR) building. KAMMI affirmed its respect for the constitutional right to free expression but rejected any confrontational narratives that could damage state facilities or threaten national unity. The organisation also reiterated its support for anti-corruption efforts, including the passage of the Asset Forfeiture Bill.

Jakarta Stocks Rise as Balance of Payments Deficit Narrows

The Jakarta Composite Index gained 0.37% to 6,525 on Friday, buoyed by a sharply narrower balance of payments deficit and plans to scrap the minimum share price rule. Bank Indonesia reported the second-quarter deficit narrowed to $0.9 billion from $9.1 billion in the first quarter, while the stock exchange's proposed removal of the Rp 50 price floor aims to improve liquidity. Gains came despite global headwinds from Wall Street volatility, rising oil prices, and US-Iran tensions.

Is Suralaya Coal-Fired Power Plant Really the Cause of Air Pollution in Jakarta?

Energy policy observer Sofyano Zakaria has called for a comprehensive scientific study to determine whether the Suralaya coal-fired power plant in Banten is a significant contributor to air pollution in Jakarta. He urged the DKI Jakarta provincial government to provide transparent data, including emission measurements, wind patterns, and dispersion modelling, rather than relying on unsubstantiated claims. Zakaria emphasised that Jakarta's air pollution is a complex issue influenced by multiple sources, including vehicle emissions, industrial activity, and meteorological factors.

Prabowo Scheduled to Visit Nagekeo, Earthquake Victims Hope for Housing Assistance

President Prabowo Subianto is scheduled to visit evacuation posts and inspect damaged facilities in Nagekeo, East Nusa Tenggara, following a recent earthquake. Displaced residents are hoping the visit will lead to assistance for rebuilding their destroyed homes, as well as repairs to schools, places of worship, and other public facilities. Evacuees have also reported shortages of basic food supplies, including cooking ingredients and vegetables.

Denpasar Immigration tracks Israeli-born foreigners for questioning

Denpasar Immigration has placed two Israeli-born foreign nationals on its wanted list for monitoring and investigation following a viral report about their removal from a Bali fitness centre. The individuals, who hold Bulgarian and Romanian passports, entered Indonesia in August 2026 and are being questioned alongside the fitness centre owner to establish the incident's chronology. Authorities have not yet determined whether any immigration violations occurred and will base any action on investigation findings and applicable laws.

Facing ASN Salary Constraints, 18 Regencies/Cities in Central Java Receive Rp268 Billion Injection from Central Government

The central government has disbursed an additional Rp268 billion in General Allocation Funds (DAU) and Revenue Sharing Funds (DBH) to 18 regencies and cities in Central Java to help cover civil servant salary payments. The funds, allocated through Finance Ministerial Decree 198 dated 5 August 2026, comprise Rp184 billion in DAU and Rp83 billion in DBH. The disbursement follows appeals from regional governments, including Central Java, to the Ministry of Finance and Ministry of Home Affairs regarding payroll shortfalls.

West Papua Police to escort food aid distribution to prevent resale

West Papua Regional Police will escort the distribution of 1,593 tonnes of rice food aid to prevent diversion or resale that harms beneficiaries. Police will work with the military and urge the public to report any irregularities. The rice covers the July, August and September periods, with 53,101 recipients across five districts receiving 30 kilograms each.

West Kalimantan Governor Speaks Out on Forest Fires, Issues Appeal to Residents

West Kalimantan Governor Ria Norsan has addressed the forest and land fires affecting the province, attributing them to a prolonged dry season and the El Niño phenomenon while acknowledging the role of land clearing by burning. He urged residents to stop the practice, report fires promptly, and wear masks outdoors. The Environment Ministry has issued urgent instructions to six governors, and the National Police Chief confirmed several suspects have been identified.