Indonesian Political, Business & Finance News

Archive: 21 August 2026

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BMKG warns wildfire smoke could cross into neighboring countries

Indonesia's meteorology agency has warned that smoke from wildfires in West Kalimantan could drift to Pontianak and across international borders due to prevailing southeasterly winds and limited rainfall expected until September 2026. The agency highlighted high fire risk in southern Kubu Raya, North Kayong, and Ketapang, with potential disruption to airports including Supadio and Rahadi Oesman. Dry conditions are forecast to persist, sustaining wildfire and haze risks before rainfall gradually normalises in October.

Airlangga Affirms Transshipment Controversy Will Not Disrupt Indonesia-US Trade Tariffs

Coordinating Minister for Economic Affairs Airlangga Hartarto has dismissed concerns that US allegations of transshipment involving Indonesia will affect the bilateral trade tariff agreement. He stated that the Agreement on Reciprocal Trade (ART) already signed by both parties will proceed as planned. The minister also rejected the accusations as inconsistent with the facts, saying the government is monitoring the situation.

Temanggung Military District Command distributes 49 operational vehicles for KDKMP

Kodim 0706/Temanggung has distributed 49 four-wheel-drive Cendrawasih pickup vehicles to support the operational readiness of the Koperasi Desa/Kelurahan Merah Putih (KDKMP) programme across Temanggung Regency. The vehicles are part of a broader package of material support that includes trucks, pickups, three-wheeled vehicles, air conditioners, shop furniture, CCTV systems and cash registers. Officials emphasised that the equipment must be properly maintained until the cooperatives officially commence operations.

Motive Behind MI Nglipar Arson Revealed as Revenge for Bullying Case

Police in Gunungkidul have revealed that the arson attack on Madrasah Ibtidaiyah Yappi in Nglipar was carried out by two sisters, one of whom claimed to have been a victim of bullying at the school seven years earlier. The 15-year-old suspect reportedly left the school after experiencing bullying from fellow pupils and being struck by a teacher. Authorities have arrested both suspects, aged 14 and 15, and are continuing to investigate the claims.

The History of G30S 1965: Chronology, Controversy, and Its Impact on Indonesia

The article examines the 30 September Movement (G30S) of 1965, a pivotal event in Indonesian history involving the kidnapping and murder of six army generals and a first lieutenant. It outlines the political tensions preceding the event, the failed coup attempt, and the subsequent mass violence against those accused of links to the Indonesian Communist Party (PKI). The piece highlights ongoing historiographical debates about the extent of PKI involvement and the event's role in the transition from Sukarno's Guided Democracy to Suharto's New Order.

Cycling Seen as a Solution for Decarbonising Jakarta's Transport

Cycling advocacy groups in Jakarta are urging greater use of bicycles as a key measure to cut carbon emissions and tackle the city's worsening air pollution. They are calling for protected cycle lanes, better supporting facilities, and stronger enforcement against motorists encroaching on cycling infrastructure. The groups argue that integrating cycling with public transport is essential for building a low-emission, sustainable urban mobility system.

KPK Prosecutors Ask Judge to Reject Former Religious Affairs Minister Yaqut's Objection

KPK prosecutors have urged the Jakarta Corruption Court to dismiss a legal objection filed by former Religious Affairs Minister Yaqut Cholil Qoumas, who is accused of corruption in the allocation of additional hajj quotas for 2023–2024. The prosecution maintains that the indictment is legally sound and should proceed to the evidentiary stage. Yaqut is alleged to have caused state losses of approximately Rp622 billion.

Airlangga says Kalimantan forest fires impact economy

Coordinating Minister for Economic Affairs Airlangga Hartarto has warned that forest and land fires in Kalimantan are disrupting economic activity in affected areas. The government is prioritising fire suppression as Indonesia enters the El Niño phenomenon, which increases fire risk due to drier conditions. More than 12,800 personnel have been deployed across West, Central and South Kalimantan, with additional water sources being developed through boreholes.

Democracy Does Not Fear Criticism

Student demonstrations across Indonesia are a normal feature of democratic life and should not be viewed with alarm by the government, according to this opinion piece. The author argues that criticism serves as a vital instrument of social control and an early warning system for policymakers, while emphasising that such criticism must be rational, fact-based and lawful. Both the government and the public share responsibility for ensuring that democratic expression remains constructive rather than descending into personal attacks or insults.

Government Again Deploys 5 Indonesian Air Force Aircraft to Tackle Kalimantan Forest Fires

The Indonesian government has dispatched five additional Indonesian Air Force aircraft to Kalimantan to reinforce firefighting operations as forest and land fires continue to affect the region. Cabinet Secretary Teddy Indra Wijaya said the deployment aims to strengthen the response and protect public safety and the environment. The Environment Ministry has also issued urgent instructions to six governors in Sumatra and Kalimantan amid deteriorating air quality linked to a strong El Niño.

High Enthusiasm, DPD RI Awards 2026 Registration Extended Until 23 August!

The Regional Representative Council (DPD RI) has extended the registration deadline for the DPD RI Awards 2026 to 23 August 2026, citing overwhelming public enthusiasm. As of Friday morning, 916 nominations had been received, a significant increase from 668 in the previous year. The awards recognise inspirational figures across education, health technology, food self-sufficiency, cultural preservation, and special contributions to regional development.

Former Employees Arrested for Stealing Boss's Motorcycles in West Jakarta

Two former employees of a pork satay business in West Jakarta have been arrested for stealing two motorcycles from their former employer. The suspects duplicated the garage key and sold the vehicles in Indramayu, using the proceeds for daily expenses. Police apprehended both men after reviewing CCTV footage and tracking them to separate locations.

Day 7 After M 7.7 Earthquake in NTT, Displaced Persons Rise to 110,785

The National Disaster Management Agency (BNPB) has reported a significant increase in the number of displaced persons following the M 7.7 earthquake in East Nusa Tenggara, with the figure now standing at 110,785. The death toll has also risen to 83, with the additional fatalities attributed to indirect impacts of the disaster. The number of injured has climbed to 986 as relief efforts continue.

Hundreds of Ship Accidents Occur Throughout 2026, Maritime Safety Standards Must Be Tightened

Indonesia recorded 601 ship accidents between January and mid-August 2026, resulting in 239 deaths and 203 people missing. Lawmakers are urging the government to strengthen maritime safety oversight, including stricter vessel inspections and improved manifest compliance. The National Search and Rescue Agency (Basarnas) is also being pushed to enhance its capacity with additional funding and equipment such as drones.

3,000 Residents in Neighbouring Singapore to Receive Free Warm Meals

Singapore's North East District is launching a free warm meals programme for over 3,000 low-income residents, using digital food credits and neighbourhood food lockers. The initiative, supported by the Ministry of Social and Family Development, will begin in September 2026 and provide about 165 meals per household over a year. It draws comparisons to Indonesia's free nutritious meals programme but operates through a digital credit system.

IHSG Ends Week on a High, Closes Up 0.37% at 6,525

The Jakarta Composite Index (IHSG) extended its rally on Friday, closing 0.37% higher at 6,525.69, supported by gains in state-owned banking stocks. The market's advance came despite lingering external concerns over US-Iran tensions and US Treasury yields. Investors are now looking ahead to Indonesia's balance of payments and current account data for the second quarter of 2026.

Financing Key to Green Transition, Banks Shift Role to Strategic Partner

Bank DBS Indonesia's research with Tenggara Strategics highlights that financing readiness, risk profiles, and cash flow certainty are critical to unlocking Indonesia's green transition opportunities. The bank argues that lenders must move beyond capital provision to help companies prepare projects and structure financing that balances sustainability targets with commercial viability. The study examines five strategic sectors, including energy, technology, food and agribusiness, health, and mining.

UMP Eases Tuition and Living Costs for Students from NTT Affected by Disaster

Universitas Muhammadiyah Purwokerto (UMP) has announced support measures for students and prospective students from East Nusa Tenggara (NTT) affected by recent disasters. The university will provide registration fee waivers and living cost assistance to ensure that the disaster does not disrupt their education. The rector emphasised that UMP views itself as a family for its students and is committed to supporting them through difficult times.

BMKG Warns of Potential 4-Metre Waves in North Sumatra Waters

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has issued a warning for fishermen and maritime stakeholders about potential waves reaching four metres in several North Sumatra waters from 22 to 24 August 2026. The highest waves are expected west of the Nias Islands and Batu Islands, while other areas may see waves of 1.25 to 2.5 metres. The agency also advised different vessel types on wind speed and wave height thresholds requiring heightened caution.

Bekasi Women's Community Encouraged to Develop Green Economy

Jakarta State University (UNJ) is assisting a women's recycling community in Bekasi Jaya to strengthen its digital marketing capacity as part of a green economy transformation programme. The initiative aims to help the community develop business management, branding, and online promotion skills for its recycled products. The programme is funded by the Ministry of Higher Education, Science, and Technology.

Safeguarding NU's Dignity at the Crossroads of Its Second Century

As Nahdlatul Ulama prepares for its 35th Muktamar in Jombang, the organisation faces mounting threats from transactional politics, state co-optation, and a widening gap between elites and grassroots members. The article argues that NU's future depends on resisting money politics, maintaining critical independence from government programmes, and building economic self-reliance from below.

People's Environmental Week: Environment Minister and Riau Police Chief Promote Ecological Justice

Environment Minister Jumhur Hidayat opened the People's Environmental Week in Pekanbaru, calling for ecological justice to be embedded in climate change policy and carbon trading frameworks. Riau Police Chief Inspector General Herry Heryawan highlighted the 'Green Policing' approach as a means to protect both communities and the environment. The event, organised by WALHI, aims to strengthen cross-sectoral synergy in addressing environmental crises in Riau.

Before Building Golden Indonesia, Have We Understood Its People?

An opinion piece argues that achieving the Golden Indonesia 2045 vision requires a deeper understanding of human development, drawing on psychoanalytic, environmental, and humanistic perspectives. The author contends that building strong people is a prerequisite for building a strong nation, and that individual growth and supportive environments are essential to the country's future.

'Molinas' marks new chapter in Indonesia's EV industrialization

Indonesia's National Electric Motorcycle (Molinas) initiative aims to transform the country from a consumer market into an integrated global hub for electric vehicle manufacturing. The programme targets comprehensive domestic capacity across component manufacturing, battery technology, and distribution, leveraging Indonesia's position as the world's largest nickel producer. Government incentives and financing schemes are being rolled out to boost adoption, with projections of significant fuel subsidy savings and economic value creation.

DPR: Malaysia and Singapore Open Palm Oil Plantations in Indonesia, Should Help Prevent Forest Fires

A senior Indonesian lawmaker has called on Malaysia and Singapore to share responsibility for preventing forest and land fires in Indonesia, arguing that companies and individuals from both countries own plantations there. Marwan Dasopang, chairman of House Commission VIII, also urged stronger legal authority for the national disaster agency to improve mitigation efforts.

Rupiah Strengthens to Rp17,694 per US Dollar After BI Holds Interest Rate

The rupiah strengthened by 54 points to close at Rp17,694 per US dollar on Friday, buoyed by Bank Indonesia's decision to hold its benchmark rate at 5.75 percent. The central bank's policy stance aims to maintain currency and inflation stability while supporting economic growth. Global market dynamics, including US Treasury yields and Federal Reserve policy uncertainty, continue to pose risks to the currency's outlook.

National Police Chief Inaugurates East Java KSPSI AGN Building, Supports Workers' Welfare

National Police Chief General Listyo Sigit Prabowo has inaugurated the East Java headquarters of the KSPSI AGN trade union confederation, marking the completion of a building project that had stalled for over three decades. The facility includes training halls, a health clinic, and MSME empowerment spaces. The Police Chief expressed hope that the building will serve as a hub for workers' advocacy and constructive dialogue between labour and employers.

BNPB deploys helicopters for Sumatra and Kalimantan forest fires

Indonesia's National Disaster Mitigation Agency (BNPB) has deployed patrol, water-bombing, and weather modification aircraft across six priority provinces in Sumatra and Kalimantan to combat forest and land fires. The air fleet is supported by joint ground teams from various agencies, with effectiveness dependent on rain cloud availability and water supplies. BNPB has urged regional leaders to strengthen early detection and reminded the public not to burn land in fire-prone areas.

Macro Assumptions of the 2027 State Budget: What Are the Effects on the JCI and Rupiah?

President Prabowo Subianto has set a 6% economic growth target in the 2027 State Budget, alongside assumptions for a 6.9% 10-year government bond yield and an exchange rate of Rp17,500 per US dollar. Infovesta Utama President Director Edbert Suryajaya considers the macro framework realistic but challenging, noting the growth target represents a significant increase from the 5.4% projected for 2025. Market participants are also closely watching the US Federal Reserve's policy direction, which is expected to influence Bank Indonesia's rate decisions, the Rupiah, and foreign capital flows into Indonesian financial markets.

Saudi Blocks Indonesia's Rp66 Billion Hajj Down Payment, House Commission VIII Calls It Arbitrary

House Commission VIII Chairman Marwan Dasopang has condemned Saudi Arabia's unilateral blocking of Rp66.6 billion in Indonesian hajj down payment funds, calling the move arbitrary. The funds were frozen to cover alleged shortfalls in health insurance payments for Indonesian pilgrims. The commission has threatened to travel to Saudi Arabia and refuses to approve any disbursement without proper verification.

Xi Jinping's 'Inner Circle' Figure Visits Foreign Minister Sugiono, Discusses Strategic Dialogue

Chinese Foreign Minister Wang Yi visited Jakarta to launch the first Indonesia-China Comprehensive Strategic Dialogue, marking a new phase in bilateral relations under President Prabowo Subianto's administration. The two sides agreed to draft a five-year action plan covering trade, energy, minerals, maritime cooperation, and artificial intelligence. The visit also included expressions of mutual sympathy over recent natural disasters and was set to continue with a 2+2 ministerial meeting and a meeting with President Prabowo.

TenPay Global and ShopeePay launch QR payments in China

TenPay Global and ShopeePay have launched cross-border QR code payments in China, initially for users from Singapore and Thailand. The service allows Southeast Asian travellers to pay at millions of WeChat Pay merchants using their home digital wallets. The move supports rising tourism and trade between Southeast Asia and China, particularly during China's APEC host year.

Banjarbaru city government prepares public protection measures amid haze

The Banjarbaru city administration in South Kalimantan has introduced protective measures for residents facing haze from forest and land fires, including delaying school start times to 09:00 WITA. The policy also covers traffic safety, clean water distribution, and health monitoring as respiratory infection cases rise. Officials warn the dry season and fire risk may persist for another two to three months.

17 August Competition Tradition: More Than Just Public Entertainment

The article explores the enduring tradition of 17 August competitions in Indonesia, tracing their origins to the 1950s and highlighting their social significance. It argues that these simple games foster community cooperation, collective memory, and social interaction, while cautioning against the tradition becoming a hollow annual routine.

Answering Industry Challenges, ISS Indonesia: Banking Needs Adaptive Workplace Transformation

ISS Indonesia has urged the banking sector to embrace adaptive workplace transformation to improve efficiency, compliance and competitiveness amid regulatory changes and accelerating digitalisation. The call was made at the Banking Connect 2026 forum, which brought together regulators, business associations and banking practitioners. Speakers highlighted the need to balance worker protection with business sustainability while leveraging technology such as smart buildings and digital operations.

KPK denies intervention in Bogor Regency corruption investigation

The Corruption Eradication Commission (KPK) has rejected claims of interference in its investigation into alleged corruption within the Bogor Regency administration. The anti-graft body says the case is progressing well and has urged the public and journalists to monitor the process. The investigation relates to suspected receipt of money by state officials from wage deductions at the regional revenue agency.

Pelni temporarily suspends operations of KM Egon and KM Wilis

State-owned shipping company PT Pelni has temporarily halted services of KM Egon and KM Wilis due to scheduled docking maintenance. The vessels, which serve routes across Kalimantan, Sulawesi, and Nusa Tenggara, are expected to resume operations by the end of August 2026. Passengers are advised to use private shipping services during the suspension period.

KAI Breaks Ground on Manggarai Housing to Bring Homes Closer to Public Transport

State railway operator PT Kereta Api Indonesia has commenced construction of the Manggarai vertical housing development in Jakarta, supporting the government's 3 Million Houses programme. The project will deliver 3,784 affordable units across eight 24-storey towers on 2.2 hectares of KAI-owned land near Manggarai Station, which serves around 162,000 passengers daily. Housing Minister Maruarar Sirait welcomed the collaboration and encouraged similar transit-oriented developments at other railway assets.

Trump signs memorandum to boost space transport capabilities

US President Donald Trump has signed a memorandum aimed at enabling more than 1,000 launches and re-entries per year in US territory by 2030. The directive instructs federal agencies to work with private sector partners on space transport infrastructure and streamline permitting processes. It also calls for NASA to facilitate commercial transport to the Moon and explore options for sending humans to Mars.

Indonesian cyber talent deemed capable of competing on the world stage

Spentera Group's managing director says the Country to Country Capture The Flag competition in Bali demonstrated that Indonesian cyber security talent can compete internationally. Indonesian representatives were part of the winning team, highlighting the country's growing capabilities in digital security. The event is seen as a platform to further develop local talent in facing cross-border cyber threats.

Hotel Occupancy in Karangasem Falls by up to 20 Percent During High Season

Hotel occupancy in Karangasem, Bali, dropped by 15 to 20 percent during the July-August 2026 high season compared with the same period last year. The local hotel and restaurant association attributes the decline to global uncertainty, war-related flight disruptions, and ongoing coastal conservation works in Candidasa. Industry representatives remain optimistic that visitor numbers will recover once infrastructure projects are completed.

Online Lending Contribution to MSMEs Rises to Rp35.12 Trillion

Indonesia's Financial Services Authority (OJK) has reported a 23.25 percent year-on-year increase in online lending to micro, small, and medium enterprises, reaching Rp35.12 trillion by June 2026. The figure represents about a third of total online lending, with aggregate bad credit levels maintained at 4.26 percent. Industry leaders and lawmakers emphasised the sector's growing role in providing alternative financing for small businesses and called for supportive regulation and ecosystem development.

Muslim Woman Critic of Israel Wins US House Seat

Aisha Wahab, a Muslim American of Afghan descent, has won a special election to fill a vacant US House seat in California's 14th Congressional District. She defeated Melissa Hernandez, who was backed by the pro-Israel lobby group AIPAC, despite nearly US$2.5 million in campaign spending against her. Wahab, who has called for cutting US military aid to Israel and accused Israel of genocide in Gaza, will become the first Afghan American in Congress.

Javan Hawk-Eagle Sightings in Bali Spur Research and Conservation

The Javan hawk-eagle, long considered endemic to Java, has been recorded at 14 locations across Bali, prompting researchers to investigate its presence on the island. Conservationists are now studying whether the Balinese population is genetically distinct from the Javan one. Experts note that the presence of this apex predator indicates healthy ecosystem quality in Bali.

Viral Couple Caught Being Intimate on Roadside in Bogor, Police Investigate

A video of a couple engaging in intimate behaviour on the side of a public road in Bogor has gone viral, prompting a police investigation. The incident reportedly occurred during a public festival near the Tajurhalang sub-district office. Police have urged the public to respect shared spaces and adhere to social norms.

KRL Expansion to Jakarta's Periphery Could Ease Congestion, But Risks Loom

Extending the electrified KRL network to Sukabumi, Cikampek and Merak could reduce dependence on private vehicles and ease chronic motorway congestion. However, urban planning experts warn that without coordinated regional development, improved connectivity may trigger sporadic urban sprawl and dormitory towns lacking economic centres. The planned Jakarta Agglomeration Council is expected to address budgeting and coordination for the metropolitan area.

Unsoed: Leadership continues despite KPK examination of rectorate officials

Jenderal Soedirman University (Unsoed) has assured that its leadership remains intact while the Corruption Eradication Commission (KPK) examines several rectorate officials in Jakarta. The university stated it has not received official information about the case and will respect the ongoing legal process. The KPK clarified that only the Vice Rectors for Student Affairs and for General Affairs and Finance were caught in the sting operation.

Dukcapil Launches Mobile Service to Restore Civil Documents for NTT Earthquake Victims

The Ministry of Home Affairs has deployed mobile civil registry teams to earthquake-affected areas of East Nusa Tenggara to replace lost or damaged identity documents. The initiative, running from 24 to 28 August 2026, aims to ensure displaced residents can access aid and public services. Six service units will cover seven affected regencies, equipped with mobile enrolment devices and satellite connectivity.

Arsonists Who Burned MI in Nglipar Arrested, Perpetrators Are Two Teenage Girls

Police in Gunungkidul have arrested two teenage sisters, aged 14 and 15, for deliberately setting fire to a madrasah in Nglipar. The suspects used diesel fuel, straw, and paper to burn the school's kitchen door and teachers' room roof. Authorities stated the act was spontaneous, with the older sibling initiating the idea.

Yatsi Madani Assists Housewife Group in Building Production Chain

Universitas Yatsi Madani is mentoring the RISDANA housewife group in Tangerang to develop chicken farming and freshwater fish cultivation into value-added processed products. The programme aims to extend the value chain from production to processing, packaging, and marketing, moving beyond raw material sales. It is supported by the Ministry of Higher Education, Science, and Technology's community service funding scheme.