Indonesian Political, Business & Finance News

Archive: 21 August 2026

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Hyundai Finally Speaks Out Amid Aa Juju's Ioniq 5 Case Uproar

Hyundai Motors Indonesia has issued a public apology after influencer Aa Juju's complaints about his Ioniq 5 electric vehicle went viral, covering both technical faults and poor customer service. The case escalated when a video of a heated exchange between Aa Juju and a dealership sales supervisor circulated widely. Hyundai says it is now conducting a thorough investigation and evaluation of its sales and aftersales service standards.

House Commission VIII on Forest Fires: Malaysia and Singapore Have Plantations in Indonesia

A senior Indonesian legislator has urged Malaysia and Singapore to contribute to preventing forest and land fires in Indonesia, noting that both countries have oil palm plantations there. Marwan Dasopang, chairman of House Commission VIII, said neighbouring countries should not merely protest about transboundary haze but should also play a role in prevention. The remarks follow the temporary closure of 108 schools in Sarawak, Malaysia, due to deteriorating air quality from fires in Kalimantan.

Palm Oil Producers Smile as CPO Price Soars to 20-Month High

Crude palm oil prices have surged to their highest level since December 2024, driven by expectations of stronger biofuel demand and weather-related supply risks. Indonesia's B50 biodiesel mandate and the onset of El Niño are key factors tightening global supply. The rally is also supported by speculative buying and supply disruptions in the Black Sea region.

HNW urges government to play active role in saving Al-Aqsa Mosque

Deputy Speaker of the People's Consultative Assembly Hidayat Nur Wahid has called on the Indonesian government, through the Ministry of Foreign Affairs, to take an active role in protecting Al-Aqsa Mosque from ongoing threats by Israeli Zionists. He noted that efforts to damage the mosque have persisted for 57 years, since an arson attack in 1969, and that recent restrictions on Muslim worship and the entry of illegal Israeli settlers constitute a violation of international agreements. HNW urged Indonesia to spearhead renewed unity among the world's Muslims, including by empowering the Organisation of Islamic Cooperation to fulfil its founding mandate.

Only 64 percent of health workers and medical personnel registered with BPJS Ketenagakerjaan

BPJS Ketenagakerjaan has revealed that only 625,000 of Indonesia's 969,000 health workers and medical personnel are enrolled in its social protection programmes, leaving around 300,000 without work accident or death cover. The agency attributes the gap to ambiguous employment relationships, including independent practitioners and those classified as business partners rather than employees. Officials are calling for greater education and clarity on contribution responsibilities, particularly for doctors working across multiple hospitals.

Electric motorcycle incentives cut, economist sees fiscal resilience improved

An INDEF economist has welcomed the planned reduction in electric motorcycle purchase incentives from Rp5 million to Rp3 million per unit, arguing it will keep the state budget more manageable. He cautioned, however, that the smaller subsidy may have limited impact on boosting sales and urged the government to design a more targeted scheme linked to local content and domestic production.

Bank BSN and BAZNAS Collaborate to Ease ZIS Payments via Bale Syariah

PT Bank Syariah Nasional (Bank BSN) has partnered with the National Amil Zakat Agency (BAZNAS) to integrate Zakat, Infak, and Sedekah (ZIS) payment services into its Bale Syariah mobile banking app. The collaboration aims to strengthen Indonesia's Islamic philanthropy ecosystem by making religious social fund payments more transparent, secure, and accountable. Bank BSN reported total assets of Rp81.1 trillion as of 31 July 2026, with Bale Syariah serving over 225,000 users.

BMKG Warns West Kalimantan Forest Fire Haze Could Spread to Neighbouring Countries

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has warned that haze from forest and land fires in West Kalimantan could spread to Pontianak and potentially cross into neighbouring countries. The agency attributes the movement to prevailing south-easterly to southerly winds and low rainfall expected to persist until late September 2026. The government plans a weather modification operation on 23-26 August, though BMKG notes it will only be effective in areas with potential rain cloud formation.

Bekasi Regency BPBD Distributes 5.7 Million Litres of Clean Water to Tackle Drought

The Bekasi Regency Regional Disaster Management Agency (BPBD) has distributed nearly 5.8 million litres of clean water to drought-affected residents since June, reaching over 65,000 people across 11 sub-districts. The drought has also impacted 1,827 hectares of productive farmland, prompting the local government to coordinate pump irrigation systems and drill satellite wells. Long-term measures such as river normalisation and illegal structure removal are being pursued to strengthen water resilience.

Banking Competition Intensifies, Asbanda Wants Regional Development Banks to Be More Competitive

The Association of Regional Development Banks (Asbanda) has called for a level playing field rather than protection for Indonesia's 27 Regional Development Banks (BPD), whose combined assets reached Rp1,043 trillion by June 2026. Asbanda argues that BPD liquidity is integral to regional development capacity and urges that government fund placements be directed towards productive sector lending. The association also acknowledges the need for BPDs to accelerate digital transformation, strengthen governance, and improve collaboration to compete effectively.

Iran: US seeks to evade responsibility for deadly attack on Minab primary school

Iran's ambassador to Russia has accused Washington of attempting to avoid accountability for a confirmed US strike on a girls' primary school in Minab that killed more than 170 people, mostly children. Kazem Jalali cited Tomahawk missile remnants and other evidence as proof that the school was deliberately targeted. He called for those responsible to be brought to justice.

Riau Police involve five experts in Bengkalis land fire investigation

Riau Police's Special Criminal Investigation Directorate has engaged five experts to assist in the investigation of forest and land fires in Bengkalis Regency. The experts will provide scientific analysis on fire origin, environmental damage, and land conditions to strengthen the case. The investigation focuses on a fire that occurred in early August 2026 within the concession area of PT Teguh Karsa Wana Lestari.

Customs Seizes Illegal Cigarettes from Drug-Smuggling Vessel, Prevents Rp 4.4 Billion in Losses

Indonesia's Directorate General of Customs and Excise has seized 1.5 million illegal cigarettes found aboard a vessel also carrying 2.6 tonnes of liquid narcotics in the Riau Islands. The operation, conducted jointly with the National Narcotics Agency and Riau Islands Police, prevented an estimated Rp 4.4 billion in potential state revenue losses. The cigarettes, branded GD and originating from China, were discovered during the interception of the MV Ocean Porter on 17 August.

Family Assets of Febrie Adriansyah Also Seized, Expert: Must Be Proven Unrelated to Criminal Offence

A criminal law expert from Gadjah Mada University has stated that claims by Febrie Adriansyah's family that their assets were seized in a money laundering case must be proven to have no connection to the alleged offence. The expert, testifying for the police in a pretrial hearing, explained that third-party ownership claims must be filed by the family members themselves, not the suspect. The mechanism for such claims is regulated under the Criminal Procedure Code.

Forestry Ministry investigates recipients and suppliers of illegal timber from Bukit Tigapuluh National Park

The Ministry of Forestry is expanding an investigation into illegal logging in Bukit Tigapuluh National Park, Jambi, after a suspect admitted to transporting undocumented timber more than a dozen times. Authorities are tracing the timber's origin, suppliers, transport patterns, and recipients in an effort to dismantle the broader illegal timber trade network. The case is the seventh related to illegal logging in the park handled by the Sumatra Forestry Law Enforcement Office in 2026.

Solar Power Plant Delivered to Agam to Restore MSMEs After Disaster

PT Atome Finance Indonesia has provided an off-grid solar power plant and production equipment to micro, small and medium enterprises in Palupuh, Agam Regency, West Sumatra, to support economic recovery following flash floods and landslides. The CSR programme, Atome Untuk Negeri 2026, also includes digital financial literacy training for 54 employees and local business actors. The initiative is projected to deliver a social return on investment ratio of 1:3.42 over three years.

Cabinet Secretary Teddy Provides Latest Update on Kalimantan Forest Fire Suppression

The Indonesian government has deployed additional aircraft to combat forest and land fires in Kalimantan, with five Air Force planes dispatched from Malang to West and East Kalimantan. Cabinet Secretary Teddy Indra Wijaya stated that 52 aircraft are now operating across six high-risk provinces, including 30 in Kalimantan and 22 in Sumatra. The reinforcement aims to strengthen firefighting efforts, reduce haze impact, and protect public safety and the environment.

Pegadaian Introduces Gold Savings Instalment Solution

State-owned pawnbroker Pegadaian has launched Cicil Tabungan Emas, a gold savings instalment product designed to make gold investment more accessible amid price volatility. The scheme uses a booking price mechanism that locks in the gold price at the start of the financing agreement, protecting customers from future market fluctuations. Customers can begin with denominations as low as 0.5 grams and apply through the TRING! mobile app, the company website, or Pegadaian outlets nationwide.

BSI Profit Grows 11.08 Percent, Gold Business Among Key Drivers

PT Bank Syariah Indonesia Tbk (BSI) reported a net profit of Rp4.16 trillion for the first half of 2026, up 11.08 percent year-on-year. The growth was supported by a sharp expansion in its gold business and a 38.15 percent rise in fee-based income. Third-party funds also grew strongly, helping to lower the bank's cost of funds to 2.19 percent.

Central Papua Police deploy personnel to prevent forest and land fires spreading in Nabire

Central Papua Police have deployed hundreds of personnel, including Brimob units, to tackle forest and land fires in Nabire Regency. The deployment follows satellite data showing 512 hotspots across Central Papua, with Nabire accounting for 279 of them. Authorities are coordinating with local agencies and communities to prevent further spread.

Indonesia urges post-fire reviews to prevent recurring wildfires

Indonesian forestry officials are calling for post-fire evaluations and stronger interagency coordination to improve future wildfire prevention and response. The government has provided firefighting assistance to local community groups and Manggala Agni personnel, while companies in mining, plantation, and forestry sectors are supporting operations in South Kalimantan. Around 1,700 hectares have burned in Banjarbaru, with priority zones including protected forest and airport areas requiring close cross-sector management.

National Police Chief Attends Health Service Event in East Java, 1,000 Residents and Workers Receive Free Medical Check-ups

National Police Chief General Listyo Sigit Prabowo attended a Police Health Service event in Surabaya, East Java, where 1,000 residents and workers received free medical examinations. The event was held in conjunction with the inauguration of the newly revitalised KSPSI AGN East Java building, which now includes a health clinic and other public facilities. The initiative aims to make the building a shared space that provides direct benefits to workers and the surrounding community.

Ministry instructs six governors to step up wildfire response

Indonesia's Environment Ministry has ordered six provincial governors to intensify wildfire prevention and response efforts as El Niño-driven dry conditions worsen air quality across Sumatra and Kalimantan. The directive requires regional governments to boost patrols, monitor peatland water levels, and activate fire control command posts, while residents are urged to limit outdoor activities and wear masks. The ministry has pledged strict legal enforcement, including criminal charges, against those who clear land by burning.

Indonesian Navy Accelerates Logistics Distribution and Deploys Specialist Doctors to Serve Flores Earthquake Victims

The Indonesian Navy is intensifying the distribution of humanitarian aid and medical services to communities affected by the earthquake in Flores, East Nusa Tenggara. KRI Bung Hatta has been deployed to transport hundreds of thousands of aid packages from Labuan Bajo to affected areas, while 13 specialist doctors and a marine field hospital have been mobilised to strengthen medical care. The Navy's hospital ship KRI dr. Soeharso is also on standby to support patient treatment.

Thai State-Owned Company Renews Interest in Developing Oil and Gas Projects in Indonesia

PTT Thailand has signalled its intention to resume investment in Indonesia's upstream oil and gas sector following the lifting of a government moratorium. The move comes after PTTEP agreed to pay A$192.5 million in compensation for the 2009 Montara oil spill. SKK Migas has expressed hope that the investment process will proceed quickly and smoothly.

TASPEN provides tax withholding slip download service via TOS TASPEN

Indonesian state-owned pension fund PT TASPEN has launched a digital service allowing pensioners to download their Income Tax Article 21 withholding slips through the TOS TASPEN platform. The initiative aims to simplify annual tax return filing and supports the government's digital transformation of public services.

Unidentified man's body found floating in Kendari Bay

Police in Kendari, Southeast Sulawesi, are investigating the discovery of an unidentified man's body found floating in Kendari Bay. The body was spotted by a local resident near mangrove trees and was evacuated by a Disaster Victim Identification team. Authorities have urged anyone missing a family member matching the description to come forward.

Swiss National Who Insulted Nyepi in Bali Sentenced to One Year in Prison

A Swiss national has been sentenced to one year in prison by the Denpasar District Court for posting a video insulting the Balinese Hindu day of silence, Nyepi. The court found Luzian Andrin Zgraggen guilty of broadcasting provocative content through information technology, though the sentence was lighter than the prosecution's demand of 15 months. The case has drawn attention to the enforcement of Indonesia's revised criminal code against foreign nationals who disrespect local religious customs.

BULOG CEO Earns Doctorate in Sustainable Development from University of Indonesia

The President Director of state logistics firm Perum BULOG, Lt. Gen. (Ret.) Ahmad Rizal Ramdhani, has completed his doctoral degree in Sustainable Development at the University of Indonesia. He said the qualification would strengthen his capacity to lead BULOG as a professional national food logistics orchestrator. Ramdhani expressed gratitude to President Prabowo Subianto, the Agriculture Minister, the National Food Coordinator, and military leaders for their support.

Aceh government proposes patchouli oil as warehouse receipt system commodity

The Aceh administration has formally proposed that Aceh patchouli oil be designated as a commodity under the warehouse receipt system (SRG), submitting the proposal to the Commodity Futures Trading Regulatory Agency (Bappebti). The move is intended to protect and improve the welfare of thousands of patchouli farmers in the province. Bappebti has welcomed the initiative and expressed hope that the scheme could be operational by the end of the year.

Mine Recovery at 100%, Freeport's Contribution to Indonesia Could Exceed Rp 100 Trillion

PT Freeport Indonesia projects its annual contribution to the state could surpass Rp 100 trillion once mining operations fully recover, expected by the end of 2027. The company is gradually ramping up production following a landslide incident in September 2025, targeting 65% capacity by the end of 2026. At full capacity, contributions could reach Rp 120 trillion or approximately US$7 billion per year, assuming stable copper and gold prices.

BNN Chief: Drug Smuggling Threat in Riau Islands High, 'We Are Not Deterred'

The head of Indonesia's National Narcotics Agency (BNN), Komjen Suyudi Ario Seto, has acknowledged that the Riau Islands face a high threat of drug smuggling due to their position in international waters. He stressed that law enforcement remains undeterred and will continue patrols, monitoring, and information sharing with customs, military, and police. The remarks follow a joint operation that intercepted 2.6 tonnes of liquid methamphetamine aboard a vessel in Karimun waters.

Qodari: Manggarai housing expands home access for low-income communities

Government Communication Agency head Muhammad Qodari has stated that the affordable housing development in Manggarai, Jakarta, forms part of the 3 Million Houses Programme aimed at low-income communities. The project represents a strategic inter-agency collaboration, with land provided by state railway operator KAI and financing from state bank BTN. Qodari emphasised the importance of accurate targeting to ensure the units reach those who genuinely need and qualify for them.

Sarinah Drives MSME Upgrading Through Tourism Ecosystem

State-owned retailer Sarinah is helping micro, small and medium enterprises (MSMEs) move up the value chain through the InJourney UMKM by Sarinah Pandu programme, which combines business coaching with access to retail, airport, tourism destination and hotel ecosystems. The initiative involves 81 MSMEs and includes curation, capacity building, training of trainers, and market testing through an expo. Officials say the programme aims to strengthen MSMEs as a key part of Indonesia's tourism value chain and broader economy.

Rendang Diplomacy Across Distance: Minangkabau Strengthens Flores Earthquake Survivors in NTT

A humanitarian initiative from Minangkabau has sent rendang to survivors of the M7.7 Flores earthquake in East Nusa Tenggara, which has been followed by over 4,200 aftershocks. The gesture is framed as a form of cultural solidarity, using the traditional dish as a symbol of resilience and shared humanity. The article argues that such cultural expressions of care should be followed by sustained support for recovery.

El Nino Drains Saguling Reservoir, Hydroelectric Power Production Still Safe

The prolonged dry season exacerbated by El Nino has significantly reduced water inflow into the Saguling Reservoir in West Bandung Regency, West Java. Despite the sharp decline, the water level remains within normal operating limits and electricity production at the Saguling Hydroelectric Power Plant continues to run normally. PLN Indonesia Power is coordinating with relevant agencies and has carried out weather modification technology to anticipate further drought.

Two Foreign Nationals Born in Israel but Holding European Passports Expelled from Bali Gym

Immigration authorities in Denpasar are investigating the expulsion of three foreign nationals from a gym in Sukawati, Gianyar, Bali. Two of the individuals have been identified as being born in Israel but entered Indonesia using Bulgarian and Romanian passports. The case went viral on social media after the gym owner alleged the men were linked to the Israel Defense Forces.

National Police Chief reads out Police Proclamation of 21 August 1945

National Police Chief General Listyo Sigit Prabowo led the 2026 Police Service Day ceremony in Surabaya, where he read out the historic Police Proclamation first delivered by Inspector Moehammad Jasin on 21 August 1945. The proclamation affirmed the Special Police of Surabaya's commitment to unite with the people in defending Indonesia's independence. The ceremony served as a moment to remember the police force's role in the struggle to maintain independence.

West Kalimantan Forest Fires Threaten Wildlife, Pangolin and Snakes Found Dead

Forest and land fires in West Kalimantan are taking a heavy toll on wildlife, with a pangolin and numerous snakes found dead in burnt areas. Officials from the Manggala Agni firefighting task force confirmed the discoveries in Ketapang Regency, noting that larger animals such as orangutans and bears have so far escaped due to stronger survival instincts. The findings highlight the growing threat to biodiversity as fires continue to spread across the province.

Naturalisation must be based on love for Indonesia, says Law Minister

Law Minister Supratman Andi Agtas has defended the government's stricter naturalisation policy, saying applicants must prove their motivation is love for Indonesia rather than business interests or asset protection. The remarks came after a company legal officer asked about a delayed application by a South Korean businessman who has lived in Indonesia for 15 years. The ministry is also studying the introduction of a citizenship test similar to Sweden's.

Iran Openly Says Saudi Arabia Will Not Be Able to Contain Houthi

Iran's Islamic Revolutionary Guard Corps has openly declared that Saudi Arabia will be unable to contain the Houthi movement in Yemen or shield itself from retaliatory attacks. The warning comes amid renewed fighting between the Iran-backed Houthis and Saudi-backed Yemeni government forces following the collapse of a ceasefire that had held since 2022. The escalating conflict threatens vital shipping lanes in the Red Sea, with the Houthis reportedly planning to seize territory along the Bab el-Mandeb Strait.

Sound Horeg Use Restricted at Peak of 81st Independence Anniversary Celebration in Kebonsari

The Kebonsari village government in Sidoarjo, East Java, has imposed strict regulations on the use of 'sound horeg' audio systems during the peak celebration of Indonesia's 81st Independence Day. The restrictions, agreed through a village consultative meeting, aim to balance public comfort with creative expression by limiting sound volume along the parade route while providing a dedicated arena for full audio performances. The event will also feature an MSME bazaar to boost the local economy.

Industrial Estate Investors Begin to Move Away from Jakarta, But Face New Threats

Industrial estate development in Indonesia is shifting away from Jakarta towards lower-cost areas along the north coast, including Kendal and Batang. While this presents opportunities for regional investment and job creation, experts warn that coastal industrial corridors face significant environmental risks from tidal flooding and abrasion. Industry leaders are calling for a green industry approach to prevent long-term damage to the Pantura region.

Garuda School sharpens talent to become key players in global market

Indonesia's Ministry of Higher Education, Science, and Technology has outlined a long-term strategy to develop national talent capable of competing globally through the Garuda School programme. The ministry emphasises that the country's future depends on human capital, creativity, science, and technology rather than natural resources alone. Higher education is positioned as the foundation for producing researchers, innovators, entrepreneurs, and creative talent who will drive Indonesia's economy and enable the nation to become a creator and key player in the world market.

BNPB: Telecommunications and clean water networks in NTT still being accelerated

The National Disaster Management Agency (BNPB) reports that telecommunications in East Nusa Tenggara (NTT) are gradually recovering after earthquake disruptions, while restoration of clean water and public infrastructure continues to be accelerated. Priority areas include Ende, Nagekeo, and Sikka regencies. The Ministry of Public Works is handling repairs to dams, irrigation areas, and wells, supported by heavy equipment deployment.

BSI posts Rp4.16 trillion profit through Q2 2026, up 11.08 percent

PT Bank Syariah Indonesia (BSI) reported a net profit of Rp4.16 trillion for the first half of 2026, an 11.08 percent year-on-year increase, driven by a 38.16 percent rise in fee-based income. Total assets grew 15.96 percent to Rp464 trillion, while third-party funds rose 21.81 percent to Rp393 trillion. The bank also recorded its highest-ever customer acquisition of 1.1 million new customers in a single semester, bringing its total to 24.3 million.

Australia requires tech giants to pay for news content

Australia has passed the News Bargaining Incentive, imposing a 2.75 per cent levy on digital advertising revenue for large tech platforms that refuse to strike commercial deals with local news publishers. The measure targets companies such as Meta, Google, ByteDance and LinkedIn, with funds channelled to the news media sector. It is designed to close loopholes in the 2021 code that allowed platforms to avoid licensing agreements by removing news content.

Visibility drops to 70 metres, Nabire Airport cancels two flights

Douw Aturure Airport in Nabire, Central Papua, was forced to cancel two flights on Friday after smoke from nearby land fires reduced visibility to below 70 metres. The airport was temporarily closed around 15:30 WIT for safety reasons, with visibility later improving to about 100 metres but still insufficient for normal operations. Fire crews are working to prevent the flames from spreading into the airport perimeter.

Four PT BKI corruption defendants charged with causing Rp16.06 billion state loss

Four defendants, including senior officials of state-owned PT Biro Klasifikasi Indonesia, have been charged with corruption related to Verified Gross Mass certificate support work between 2021 and 2023. Prosecutors allege the scheme caused a definite state loss of Rp16.06 billion, based on a BPKP audit. The defendants are accused of colluding with a private contractor to make procurement a mere formality and paying for work that was never fully performed.

Seven Days After NTT Earthquake, Casualty Toll Continues to Rise

The death toll from the M 7.7 earthquake that struck Flores, East Nusa Tenggara, has risen to 83, with nearly 1,000 injured and over 110,000 people still displaced a week after the disaster. Aftershocks continue to shake the region, with BMKG predicting the sequence will last another three to four weeks.