Indonesian Political, Business & Finance News

Archive: 21 August 2026

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BNPB: Highest Concentration of Hotspots in West and Central Kalimantan, Air Quality Worsens

Indonesia's National Disaster Management Agency (BNPB) has detected 1,487 hotspots across Kalimantan, with the highest concentrations in Central and West Kalimantan. The resulting forest and land fires have pushed air quality in some areas to hazardous levels and disrupted air transport. Authorities are urging the public to avoid open burning and to report any fires promptly.

Noble Character: An Ethic and Compass in Life and Business

This opinion piece uses the 1781 Zong massacre, where enslaved Africans were thrown overboard and later claimed as insured cargo, to illustrate the dangers of prioritising profit over conscience. The author argues that noble character—honesty, integrity, and responsibility—must guide decision-making in modern business, particularly in sales and business development, where targets should never override ethical conduct.

KPK Prosecutors Ask Judge to Reject Former Religious Affairs Minister Yaqut's Objection in Hajj Quota Case

KPK prosecutors have urged the Jakarta Corruption Court to reject a legal objection filed by former Religious Affairs Minister Yaqut Cholil Qoumas and proceed to the evidentiary stage in the alleged corruption case involving additional hajj quotas for 2023-2024. Yaqut's defence team argued the indictment was imprecise and that the quota allocation was an operational decision derived from an official Indonesia-Saudi Arabia memorandum of understanding. Prosecutors maintain the indictment was properly drafted under the Criminal Procedure Code and that the defence's arguments belong to the substantive examination of the case.

Government Modifies Weather and Adds Aircraft to Tackle Kalimantan Forest Fires

The Indonesian government is intensifying weather modification operations and expanding its aerial fleet to combat forest and land fires across Kalimantan. Cloud seeding has already been conducted in West and Central Kalimantan, with further operations planned where atmospheric conditions allow. Ground-based firefighting remains the priority, with aerial support constrained by thick smoke and limited visibility.

Forest Fires Rise, PetroChina Deploys Personnel and Equipment in Jambi

PetroChina International Jabung Ltd has stepped up its involvement in tackling forest and land fires in Jambi as the dry season increases fire risk. The company has responded to 10 incidents in the past two months across Tanjung Jabung Barat and Tanjung Jabung Timur regencies, deploying fire trucks, vacuum trucks, and portable pumps. Its efforts include coordination with the military, police, disaster agency, and community fire volunteers, alongside prevention programmes and community fire brigade training.

Viral Plant Resembling Corpse Flower Grows in Bogor, Researcher: It Is a Suweg Tree

A plant resembling the Rafflesia arnoldii, or corpse flower, that went viral on social media after appearing in a Bogor resident's garden has been identified by a BRIN researcher as a suweg, or Amorphophallus paeoniifolius. The researcher explained that Rafflesia arnoldii is a parasitic forest plant requiring a host tree and could not grow in a residential yard. The homeowner noted the plant had been there for some time and had only recently developed its flower-like form.

Lampung Governor: Total four million litres of PHC distributed to farmers

Lampung Governor Rahmat Mirzani Djausal has announced that four million litres of liquid bio-fertiliser (PHC) have been distributed to farmers across 500 villages, with plans to expand the programme to 2,000 additional villages in 2026. The initiative aims to cover 1.5 million hectares of agricultural land and benefit one million farmers. The governor also highlighted the integration of the Advanced Agriculture System programme and irrigation improvements to boost productivity to 11-12 tonnes per hectare and support food self-sufficiency.

Indonesia's Current Account Deficit Widens Sharply to $12.5 Billion

Indonesia's current account deficit widened sharply to $12.5 billion in the second quarter of 2026, equivalent to 3.3% of GDP, driven by higher oil imports and a narrower non-oil trade surplus. Bank Indonesia attributed the deterioration to temporary factors including elevated global crude prices and strong domestic demand. The overall balance of payments deficit narrowed to $900 million, supported by a rebound in the capital and financial account.

KPK examines Pakuwon Jati employee in Lamongan Regency building case

Indonesia's Corruption Eradication Commission (KPK) has questioned a General Affairs employee of property developer PT Pakuwon Jati Tbk as a witness in an alleged corruption case involving the construction of the Lamongan Regency Government building. The case has already seen four suspects detained, with state financial losses estimated at Rp35.7 billion. The KPK has worked with the BPKP and Bandung Institute of Technology to calculate the losses.

CK Hutchison sues Panama for billions of dollars over treaty dispute

CK Hutchison Holdings has initiated international arbitration against Panama, claiming damages exceeding US$1.5 billion for alleged treaty violations and the forced seizure of its port operations. The Hong Kong conglomerate accuses Panama of waging a year-long state campaign against its investment, culminating in the takeover of the Balboa and Cristobal terminals in February. Panama has reportedly failed to engage in dispute resolution despite receiving treaty notices.

Sukorahayu residents donate land for elephant barrier embankment

Residents of Sukorahayu village in East Lampung have agreed to donate land for the construction of a barrier embankment intended to prevent human-elephant conflict. Village officials and farmers support the project and are prepared to provide a 20 by 600 metre plot without compensation. The embankment is expected to reduce damage to crops caused by Sumatran elephants that have entered the area for decades.

Crypto Firm Partners with Bank to Expand Digital Financial Access

PT Indodax Nasional Indonesia has partnered with PT Bank Ina Perdana Tbk to launch a co-branded card linked to Bank Ina's digital savings platform, Binadigital. The collaboration aims to integrate everyday banking transactions with digital asset management for Indodax members. Both companies see the move as a step towards more inclusive digital banking and financial technology adoption in Indonesia.

Legislator Urges Government to Mitigate Hajj Finances Before Raising Burden and Conduct Total Bipih Evaluation

A member of the House of Representatives has called for a comprehensive evaluation of the 2027 Hajj pilgrimage cost components before any increase is approved. The legislator emphasised the need for transparent and accountable calculations, particularly regarding disaster mitigation during the payment period. She also stressed that efficiency must be prioritised before adding to the financial burden on pilgrims.

Three Indonesian Air Force Transport Aircraft Deployed for Weather Modification in Kalimantan

The Indonesian Air Force has deployed three Casa NC-212 transport aircraft to support weather modification operations aimed at tackling forest and land fires in Kalimantan. The aircraft departed from Abdulrachman Saleh Air Base in Malang to reinforce the regional disaster agency's existing fleet. The operation is part of an integrated strategy to increase rainfall and reduce the impact of smoke haze in affected areas.

Gov't builds drilled wells to boost forest fire handling in Kalimantan

The Indonesian government is constructing drilled wells in Kalimantan to ensure reliable water supplies for fighting forest and land fires, particularly on peatlands where surface water is scarce during prolonged dry conditions. The initiative is part of a strengthened integrated approach involving multiple agencies and over 12,800 personnel across three priority provinces. Officials say the wells will shorten water extraction distances and help maintain continuous wetting and cooling operations to prevent fires from reigniting.

Rupiah strengthens on central bank's decision to hold BI-Rate

The Indonesian rupiah strengthened against the US dollar on Friday, supported by Bank Indonesia's decision to keep its benchmark interest rate at 5.75 percent. The central bank's policy aims to maintain currency and inflation stability while supporting economic growth. Global sentiment, particularly the direction of the US dollar and Treasury yields, continues to influence the rupiah's movement.

Video: Starting from a Scholarship, Tuban Youth Builds Modern Sheep Farming

Tatang Adi Sasono has realised his ambition to advance Indonesian agriculture by establishing PT Mitra Ternak Berlanjutan in Tuban, East Java. The venture aims to build a modern, inclusive and sustainable sheep farming ecosystem in Indonesia. His journey was supported by scholarships from the Putra Sampoerna Foundation.

Indonesian Consumers Spend Rp88 Trillion on Cooking Oil and Mineral Water via Shopee and Others

Indonesia's e-commerce FMCG market grew 29.4% year-on-year to Rp88.4 trillion in the first half of 2026, driven by a shift from lifestyle purchases to everyday household needs. Homecare and food & beverage categories recorded the fastest growth, while Shopee and ShopTokopedia now control 99% of the market. The data highlights both expanding digital consumption and increasing market concentration among two dominant platforms.

Singaporean man, 56, jailed 14 days and fined US$1,733 for insulting Islam in Johor

A Singaporean security guard has been sentenced to 14 days in jail and fined RM7,000 by a Johor Bahru court after pleading guilty to insulting Islam under Section 298 of Malaysia's Penal Code. Mohamed Anim Atam made derogatory remarks about the Quran during an e-hailing ride, which were recorded and went viral, prompting a police report and his subsequent arrest. The case highlights the sensitivity of religious issues in Malaysia and the legal consequences for actions deemed to wound religious feelings.

DJSN: Many health workers not yet registered with BPJS Kesehatan and BPJS Ketenagakerjaan

Indonesia's National Social Security Council (DJSN) has highlighted that a significant number of medical and health workers lack social security protection, despite being on the front line of public service. Data discrepancies show around 1.8 million workers registered with BPJS, while professional organisations estimate the total workforce exceeds 2 million. The council is coordinating with relevant agencies to synchronise data and ensure compliance with legal mandates.

KAI CEO: Kalimantan and Bali railway development still under study

PT Kereta Api Indonesia is still studying the development of railway lines in Kalimantan, Sumatra and Bali as part of the national railway network plan. President Prabowo Subianto has directed the state-owned company to prioritise these three regions, with land acquisition readiness a key factor in determining which project proceeds first. The government is also open to domestic and foreign investment in railway development to strengthen logistics connectivity and support regional economic growth.

Ilu Police Officer Shot by Armed Criminal Group Led by Ternus Enumbi in Papua Pegunungan

A member of the Ilu Police, Bripda Jhon Galu Situmorang, was shot by an armed criminal group in Tolikara, Papua Pegunungan, sustaining a gunshot wound to his left thigh. Authorities suspect the attack was carried out by the group led by Ternus Enumbi. The officer has been evacuated to Jayapura for further medical treatment as his condition deteriorated.

IDX Plans to Change Minimum Share Price to Rp 1, Check List of Gocap Stocks: GOTO-ADCP-BCAP-BTEL

The Indonesia Stock Exchange (IDX) is preparing to remove the Rp 50 minimum share price floor in the regular and cash markets, allowing prices to fall as low as Rp 1 per share. The change aims to improve liquidity and price discovery, with trials scheduled for late August 2026 and implementation targeted for 7 September 2026. Dozens of stocks currently stuck at the Rp 50 level, including GOTO, ADCP, BCAP and BTEL, would be affected by the new rule.

KPK summons former Sukoharjo deputy regent Agus Santosa in Etik Suryani extortion case

Indonesia's Corruption Eradication Commission (KPK) has summoned former Sukoharjo Deputy Regent Agus Santosa and eight other officials as witnesses in an alleged extortion case involving suspended Sukoharjo Regent Etik Suryani. The case stems from a sting operation in July 2026 and involves allegations that Suryani continued an extortion scheme started by her husband and predecessor, Wardoyo Wijaya. Investigators suspect she received Rp2.93 billion in levy collection payments and Rp1.2 billion in routine deposits from regional apparatus heads.

North Jakarta administration distributes honourarium to independence war veterans

The North Jakarta city government has distributed an honourarium to 90 members of the Indonesian Veterans Legion (LVRI) as a gesture of respect for their role in the independence struggle. Mayor Hendra Hidayat emphasised that the values of unity, courage and sacrifice must be passed on to younger generations. The veterans also received free health check-ups as part of the programme.

BTN prepares 40-year fixed-rate mortgages at Manggarai TOD

State-owned Bank Tabungan Negara is introducing subsidised mortgages with tenors of up to 40 years and a fixed 6 per cent interest rate for affordable vertical housing at the Manggarai Transit Oriented Development in Jakarta. The scheme aims to broaden access to city-centre housing, with unit prices kept below Rp600 million and construction targeted for completion in around 18 months.

KPK Sting Operation Targets Unsoed Rector Over 'Manipulation' of Medical Faculty Admissions

Indonesia's Corruption Eradication Commission (KPK) has arrested the Rector of Jenderal Soedirman University and 13 others in a sting operation over alleged bribery in new student admissions to the Faculty of Medicine. The anti-graft body says it uncovered a layered system of payments worth hundreds of millions of rupiah to secure places at the medical school. The suspects are being questioned as the KPK determines their legal status within the required 24-hour period.

Russia Hunts US Health Secretary's Son, Also Taylor Swift's Ex-Boyfriend — Why?

Russian authorities have placed Conor Kennedy, son of US Health Secretary Robert F. Kennedy Jr and former boyfriend of Taylor Swift, on an international wanted list. He is accused of acting as a mercenary after admitting he fought with Ukrainian forces in Kharkiv in 2022. A Moscow court has approved an in-absentia arrest warrant, with an appeal reportedly rejected in a closed hearing.

Air Quality in Palangka Raya Reaches Hazardous Level

Air quality in Palangka Raya, Central Kalimantan, has reached hazardous levels due to smoke and soot from forest and land fires. Local authorities report that PM2.5 concentrations peaked at 290.2 in the early morning, with 298 fire incidents recorded between June and August 2026. Officials are urging community involvement in early fire prevention, particularly given the vulnerability of the region's peatland ecosystems.

Forest Fire Emergency: Environment Minister Signs Ban on Land Clearing by Burning

Indonesia's Environment Minister Jumhur Hidayat has issued a formal ban on land clearing by burning as forest and land fires in Kalimantan cause air quality to deteriorate across several regions. The ministry has instructed affected local governments to monitor peatland water levels and air quality stations, while warning of strict legal sanctions for violators.

After 59 Years in Indonesia, Here Is Freeport's Contribution to the State

PT Freeport Indonesia has contributed more than US$32 billion to the Indonesian state since its second Contract of Work began in 1992. The company paid over US$4.7 billion in taxes, dividends, royalties and other levies in 2025 alone. Contributions are projected to fall to around Rp47 trillion in 2026 due to recovery from a landslide, before rising to about Rp120 trillion annually once full production capacity is restored in 2028.

China, Indonesia agree to boost military ties, work closer on minerals, energy and tech

China and Indonesia have agreed to strengthen military cooperation and deepen collaboration in minerals, energy, and technology during high-level talks in Jakarta. The agreement reflects Indonesia's non-aligned foreign policy as it balances relations with both Beijing and Washington. The two sides also pledged to support each other's core interests, though Chinese investment in Indonesia's nickel sector has faced regulatory friction.

KPK Summons Former Sukoharjo Deputy Regent in Extortion Case Involving Regent Etik Suryani

Indonesia's Corruption Eradication Commission (KPK) has summoned former Sukoharjo Deputy Regent Agus Santosa and eight other witnesses in connection with an alleged extortion scheme involving suspended Regent Etik Suryani. The investigation centres on claims that Suryani demanded approximately 40 per cent of incentive payments received by staff at the regional financial and asset management agency. The KPK has named three suspects in the case, including Suryani and two of her subordinates.

Religious leaders highlight importance of cross-cultural religious literacy for ASEAN

Indonesian religious leaders have emphasised the importance of cross-cultural religious literacy for Indonesia and ASEAN amid increasingly complex social interactions. The Institut Leimena's Cross-Cultural Religious Literacy Immersion Programme aims to educate teachers and communities on religious tolerance. Speakers warned that over 50 percent of religious teachers in Indonesia are affected by intolerance issues, and that politicisation of religion is often used to divide society.

Pelni Makassar and Pelindo open free shipping service for aid to NTT

PT Pelni's Makassar branch, together with PT Pelindo and other port stakeholders, is offering free sea freight for humanitarian aid destined for earthquake victims in East Nusa Tenggara. The public can drop off donations at three collection points in Makassar, with shipments carried on Pelni vessels serving NTT routes. The initiative aims to accelerate the distribution of relief supplies to affected communities.

2.6 Tonnes of Liquid Methamphetamine Case Uncovered, Coordinating Minister for Political and Security Affairs: Indonesia Must Not Become a Market

Indonesian authorities have intercepted 2.6 tonnes of liquid methamphetamine in the waters off the Riau Islands, intended for the production of millions of drug-laced vape cartridges. Coordinating Minister for Political and Security Affairs Djamari Chaniago stated the operation sends a clear message that Indonesia will not be used as a transit point, storage site, or market for transnational drug networks. The seizure is estimated to have prevented illicit sales worth approximately Rp 8.5 trillion.

Aismoli: No Government Coordination Yet on Electric Motorcycle Incentives

The Indonesian Electric Motorcycle Association (Aismoli) says it has not been formally consulted by the government regarding the planned resumption of electric motorcycle purchase incentives. Chairman Budi Setiadi warned that the lack of coordination and shifting policy announcements could harm the business climate for electric vehicles. The government has prepared a budget of Rp3 trillion, with the new subsidy scheme reportedly set at Rp3 million per unit, down from Rp7 million in the previous period.

PPP Prepares Strong Legal Team Ahead of 2029 General Election

The United Development Party (PPP) is strengthening its legal apparatus and organisational consolidation ahead of the 2029 general election. Former Constitutional Court Chief Justice Hamdan Zoelva emphasised the party's historical importance as a successor to pre-independence Islamic parties and urged early preparation of legal guidelines. PPP Chairman Muhamad Mardiono highlighted lessons from the 2024 election, calling for a more solid, data-driven party structure.

KPK summons Pemalang regional secretary and public works chief as witnesses

Indonesia's Corruption Eradication Commission (KPK) has summoned the Pemalang regional secretary and the head of the public works and spatial planning agency as witnesses in an alleged extortion case involving the suspended Pemalang regent. The investigation stems from a sting operation in July 2026 that uncovered two separate extortion clusters. Five other individuals, including hotel managers and a restaurant employee, have also been called for questioning.

KAI to Add 5 Electrical Substations So Green Line KRL Can Run 12-Car Trains

State railway operator PT Kereta Api Indonesia (KAI) is finalising the design for a capacity upgrade of the Tanah Abang–Rangkasbitung Green Line commuter service. The first phase will add five electrical substations to boost power supply, enabling the operation of 12-car train formations. Subsequent phases will upgrade existing substations and signalling to shorten headways and better accommodate rising passenger demand.

Two Friends Killed in Mercedes Crash on Jagorawi Toll Road, Bodies Handed Over to Families

Police have identified the driver and passenger of a Mercedes-Benz jeep who died after crashing into a trailer truck on the Jagorawi Toll Road. The two victims were friends, and their bodies have been released to their families following identification by the Disaster Victim Identification unit.

Capacity to Reach 1.67 GW, Data Center Energy Hunger Examined in Energy Week

Indonesia's data centre industry is expanding rapidly, with installed capacity projected to rise from 650 MW to 1.67 GW by end-2026 and potentially 11.7 GW by 2030. The growth, driven by AI and digital demand, raises sustainability concerns over energy, water, grid readiness, and talent. IDPRO is calling for integrated industrial estate approaches and workforce development programmes to support the sector.

DPD Ethics Council Processes Report of Alleged Intimidation by AWK Against Lombok Woman

The Regional Representative Council's Ethics Council (BKD DPD RI) has formally begun processing a report alleging intimidation by Bali senator Arya Wedakarna against a young woman from Lombok. Four senators from West Nusa Tenggara have pledged to oversee the case, which also includes accusations of racism. The council's leadership has indicated readiness to proceed, with a final decision expected within one sitting period.

Pensioners Can Now Download Tax Withholding Certificates via TOS TASPEN

PT TASPEN (Persero) has introduced a digital service allowing pensioners to download their Income Tax Article 21 withholding certificates through the TOS TASPEN platform. The initiative aims to simplify annual tax reporting for individual taxpayers. The move forms part of TASPEN's broader digital transformation under Danantara, aligned with the government's public service objectives.

Supreme Court Issues New Pretrial Rule to Prevent Protracted Cases

Indonesia's Supreme Court has issued a new regulation governing pretrial motions to prevent cases from being deliberately prolonged. The rule clarifies that a main case cannot be heard while a pretrial motion is still pending, but a pretrial motion filed after the main case has been transferred will be declared inadmissible. The measure aims to provide legal certainty and uphold the principles of simple, speedy, and low-cost justice.

Elderly Woman Flees Barefoot as Fire Engulfs Paseban Settlement

A 62-year-old resident described fleeing barefoot as a fire swept through a densely populated area of Paseban, Central Jakarta, on Thursday evening. Around 120 residents were displaced and are sheltering at a local primary school, with no casualties reported. Authorities deployed 32 fire engines and are still investigating the cause of the blaze.

Ahead of 78th Anniversary, South Sumatra Policewomen Hold Environmental Clean-up

Policewomen from the South Sumatra Regional Police conducted a clean-up operation around the force's headquarters in Palembang to mark the 78th anniversary of the Indonesian Policewomen Corps. The activity covered several public areas, including a flyover and retention pond, and was framed as a demonstration of the unit's commitment to community service and environmental stewardship.

Indonesia gains US market edge as seaweed tariff drops to zero

Indonesian seaweed and agar-agar exports have been exempted from the additional 10 percent Section 301 tariff imposed by the United States, leaving them subject only to a zero percent most-favoured-nation rate. The exemption gives Indonesian exporters a 2.5 percentage point tariff advantage over competitors such as China, Vietnam, and Thailand, which face additional duties of up to 12.5 percent. The Ministry of Marine Affairs and Fisheries expects the policy to strengthen the competitiveness of Indonesian fishery products in the US market.

US Prepares to Flood China with AI Chips by Late 2026

Nvidia is reportedly planning to ship specially designed AI chips to Chinese customers in limited quantities by the end of 2026, according to sources cited by The Information. The chips, based on licensed technology from startup Groq, are said to comply with US export controls. Nvidia has denied the report, stating it has no China-specific LPU product in its roadmap.

National Police Chief Leads 2026 Police Service Day Ceremony in Surabaya

National Police Chief General Listyo Sigit Prabowo led the 2026 Police Service Day ceremony in Surabaya, commemorating the historic 1945 Police Proclamation. The event highlighted the enduring spirit of the Special Police of Surabaya and its relevance to modern policing. The ceremony underscored the police force's role in maintaining stability to support national development and economic growth.