Indonesian Political, Business & Finance News

Archive: 21 August 2026

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Jakarta Provincial Government Extends Donation Drive for NTT Earthquake Victims Until 25 August

The Jakarta Provincial Government has extended its donation drive for victims of the Nusa Tenggara Timur earthquake until 25 August, having already dispatched Rp5.8 billion in aid. The assistance includes cash contributions from regional-owned enterprises and government agencies, as well as essential supplies such as water tanks and a mobile water treatment plant. The aid is being distributed through air and sea routes in coordination with the National Disaster Management Agency.

BNN: Ship Carrying 2.6 Tonnes of Liquid Narcotics Had Repeatedly Changed Names

Indonesia's National Narcotics Agency (BNN) has revealed that a vessel intercepted carrying 2.6 tonnes of liquid narcotics had changed its name multiple times to evade detection. The joint operation involving BNN, Customs, and Kepulauan Riau Police seized the MV Ocean Porter in the Malacca Strait. The ship, flying the Tanzanian flag, had previously been known as Hongran 2, RACEWIND, and Rain Maker.

Governor Mirza Inspects Road Progress in Metro and Central Lampung

Lampung Governor Rahmat Mirzani Djausal inspected road construction on the Metro–Kota Gajah and Jalan Pattimura sections on Thursday, 20 August 2026. He praised the quality and pace of work, noting progress was eight per cent ahead of schedule. The Governor stressed that uniform construction standards must be applied across Lampung to ensure consistent quality and public satisfaction.

School start times delayed in Palangka Raya due to haze

The Palangka Raya Education Office has delayed school start times for primary and junior secondary students to 08:00 WIB and suspended outdoor activities due to declining air quality from forest and land fires. Students are required to wear masks, while early childhood education has shifted to distance learning.

2.6 Tonnes of Liquid Narcotics Seized in Vessel Interception off Riau Islands, Here Are the Details

A joint task force comprising the National Narcotics Agency (BNN), Karimun Customs and Excise, and the Riau Islands Police intercepted the Tanzanian-flagged MV Ocean Porter in Karimun waters, seizing 2.6 tonnes of liquid methamphetamine. Ten foreign crew members, all Myanmar nationals, were arrested along with illegal cigarettes and electronic devices. The operation was carried out on 17 August as a gift for Indonesia's 81st Independence Day.

Palue Residents in NTT Welcome Helicopter Carrying Earthquake Aid

Residents of Palue Island in East Nusa Tenggara gathered as an Indonesian Air Force H225M Caracal helicopter delivered logistical aid to communities affected by an earthquake. The airlift was part of efforts to reach remote and isolated areas with limited access. Locals joined Air Force personnel in unloading the supplies.

Indonesia's Current Account Deficit Hits US$12.5 Billion, Largest in History

Indonesia's current account deficit widened sharply to US$12.49 billion in the second quarter of 2026, the largest nominal deficit on record. The deterioration was driven by a surge in oil and gas imports amid rising global oil prices and a shrinking goods trade surplus. The deficit reached 3.34% of GDP, the highest level since late 2018.

26 Tonnes of Salt Seeded for Cloud Seeding to Tackle Riau Forest Fires

Authorities in Riau have seeded 26 tonnes of sodium chloride into cumulonimbus clouds over 21 days as part of weather modification operations to combat forest and land fires. The effort has successfully induced rainfall in drought-stricken areas including Pelalawan, Bengkalis, Dumai, Rokan Hilir and Kuantan Singingi. Six helicopters are also on standby for water bombing to support ground teams battling fires across the province.

KP2MI suspends PT Duta Fadalima operations for procedural violations

Indonesia's Ministry for the Protection of Indonesian Migrant Workers (KP2MI) has partially suspended the operations of PT Duta Fadalima for breaching recruitment and placement procedures. The company was found to have placed workers in Saudi Arabia without the required permit and outside the official SISKOP2MI system. The suspension is part of broader efforts to enforce compliance and protect migrant workers' rights.

Bima Arya Urges Regional Heads to Shift Development Paradigm

Deputy Home Affairs Minister Bima Arya Sugiarto has called on regional leaders to move beyond a narrow focus on economic growth and incorporate social, cultural, and ecological sustainability into development planning. He stressed the need for meaningful involvement of indigenous communities and the integration of ecological balance into spatial planning. Bima also encouraged accelerating the recognition of customary law communities through regional regulations.

Asbanda Urges Equal Opportunities for Regional Development Banks in Government Transactions

The Association of Regional Development Banks (Asbanda) has called for a level playing field for Regional Development Banks (BPD) in government programmes and transactions, emphasising their role in supporting regional economic development and national financial system stability. Chairman Agus Haryoto Widodo stressed that BPDs are not seeking protection from competition but rather equal opportunities, noting that their liquidity is intrinsically linked to regional fiscal cycles and government fund transfers. Asbanda also urged that government fund placements in BPDs be directed towards strengthening intermediation in productive sectors such as MSMEs, food, housing, health, education, and regional infrastructure.

PGN boosts MSMEs through Suadesa Festival 2026

PT Perusahaan Gas Negara Tbk (PGN), the gas subholding of Pertamina, is promoting micro, small, and medium enterprises in Sleman Regency, Yogyakarta, through the Suadesa Festival 2026. The event aims to empower local communities by developing a sustainable local economic ecosystem and introducing compressed natural gas as an energy solution for MSMEs. Scheduled for 22-23 August 2026, the festival will feature an MSME market, cultural performances, workshops, and social and environmental initiatives.

BNN Chief Reveals Chronology of Seizure of Ship Carrying 2.6 Tonnes of Liquid Narcotics, Beginning with Route Anomaly

Indonesia's National Narcotics Agency (BNN), Customs and Excise, and Riau Islands Police intercepted the MV Ocean Porter in the Karimun waters on 17 August, seizing 2.6 tonnes of liquid narcotics. The operation followed months of intelligence tracking that began in December 2025, when authorities detected anomalous route patterns and repeated name changes by the vessel. Ten Myanmar nationals were detained, and hundreds of boxes of illegal cigarettes from China were also found aboard.

Russia Says It Is Not Pressuring Tehran to Return to Negotiating Table with US: Iran Is a Sovereign State

Russia's UN ambassador Vasily Nebenzya has said Moscow is not pressuring Iran to resume negotiations with the United States, insisting Tehran must make its own decisions as a sovereign state. He blamed Washington for the 'reckless and unprovoked aggression' against Iran and dismissed US threats to isolate economies that maintain ties with Tehran. Nebenzya also said Russia has adapted to waves of Western sanctions and will cope with any additional measures.

BNN: 10 Foreign Crew Members of Vessel Carrying 2.6 Tonnes of Liquid Narcotics Named Suspects

A joint operation by Indonesia's National Narcotics Agency (BNN), Customs and Excise, and Riau Islands Police has foiled an attempt to smuggle 2.6 tonnes of liquid methamphetamine and millions of illegal cigarettes through the waters of Tanjung Balai Karimun. Ten foreign crew members have been named suspects. The drugs were concealed in drums and a water tank inside a shipping container aboard a cargo vessel.

America Turns 180 Degrees, Suddenly Follows China's Approach

US tech giants Meta and Nvidia have released open-source AI models, mirroring the strategy long used by Chinese firms such as DeepSeek and Alibaba's Qwen. The move comes weeks after US companies urged the government not to impose early restrictions on open-weight AI models, including those from China. The shift marks a significant departure from the proprietary approach of OpenAI and Anthropic, as American firms seek to compete with the growing popularity of Chinese open-source AI.

PNKT deploys Karang Taruna to help tackle forest and land fires in Sumatra-Kalimantan

The National Management of Karang Taruna (PNKT) has mobilised personnel and volunteers to support forest and land fire response efforts across five priority provinces in Sumatra and Kalimantan. The deployment includes tents and operational funds, with members assisting in logistics, communication, and community mobilisation rather than direct firefighting. The initiative is coordinated with the Ministry of Forestry and local fire control agencies.

Deputy Minister: LPDB Koperasi financing to help Lurik Prasojo go international

Deputy Minister of Cooperatives Farida Farichah has said that financing from the Revolving Fund Management Agency (LPDB) Koperasi is expected to help Koperasi Konsumen Karyama Kusuma Aji Tera, known for its Lurik Prasojo woven fabric, expand into international markets. The Klaten-based cooperative, which has supported lurik artisans since 1950, is being positioned as a model for strengthening real-sector cooperatives and building a weaving ecosystem comparable to batik. Officials from LPDB Koperasi and the Creative Economy Agency see strong export potential in lurik's cultural narrative and simple patterns.

Manggala Agni: Wildlife increasingly threatened by forest and land fires in West Kalimantan

The Manggala Agni firefighting team has found a dead pangolin amid forest and land fires in Ketapang Regency, West Kalimantan, highlighting the growing threat to wildlife. Snakes are the most commonly found dead animals, while orangutans and bears have so far avoided becoming victims due to their stronger survival instincts. The discovery underscores that the fires are not only damaging the environment and disrupting communities but also endangering animals in affected areas.

Family of Kramat Jati accident victim urges DKI to firmly reorganise market

The father of a student killed by a rubbish truck in Kramat Jati, East Jakarta, has urged the Jakarta provincial government to take firm action in reorganising the area. Eri Yusnovi said the road remains slippery due to fish waste from overflowing market stalls and that no decisive measures have been taken since the accident. The family's legal team stressed they are not seeking money but are demanding state accountability to prevent similar tragedies.

Indonesian Air Force deploys three transport aircraft 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 existing efforts by the Regional Disaster Management Agency. The operation is intended to help extinguish fires and reduce the impact of haze in the region.

Many Citizens Dying Young, MSIG Life Claims Reach Rp545 Billion

MSIG Life Insurance Indonesia reported total health and death claims of Rp545 billion in the first half of 2026, with health claims dominating at Rp433.4 billion. The company found that 55% of individual death claims occurred among people of productive age, between 25 and 59 years old. MSIG Life emphasised its financial strength, citing a Risk Based Capital ratio of 1,382%, far above the OJK minimum requirement of 120%.

Nyadran tradition of a thousand ketupat among coffee farmers in Temanggung

Coffee farmers in Temanggung, Central Java, held the Nyadran 1,000 Kupat tradition to express gratitude for the abundant water of the Lenging River throughout the year. The ritual, led by traditional elders, involves sharing 1,000 ketupat and aims to preserve water sources through cultural tradition.

KLH Addresses Air Quality and Forest Fire Threat During Dry Season

Indonesia's Ministry of Environment has issued urgent instructions to six provinces as air quality deteriorates due to land fires exacerbated by a strong El Niño. The ministry has banned land clearing by burning and warned of strict legal sanctions for violators. Residents in affected areas have been advised to limit outdoor activities and wear masks.

JK: PMI Distributes Logistics and Serves Hundreds of NTT Residents Affected by Earthquake

The Indonesian Red Cross (PMI) has mobilised personnel, vehicles, and medical teams to assist communities affected by an earthquake in East Nusa Tenggara. Chairman Jusuf Kalla emphasised the importance of rapid response in emergency situations. As of 20 August, hundreds of residents have received health services and psychosocial support.

AESI Supports 30 GW Solar Target and 1 MW Per Village Programme

The Indonesian Solar Energy Association (AESI) has pledged full support for the government's target of building 30 GW of solar power capacity this year. The association has formed four task forces and is developing a community-based model to achieve President Prabowo Subianto's vision of 1 MW of solar capacity in every village. AESI also plans to train village women as solar technicians through the Green Workforce Task Force, in cooperation with the Ministry of Cooperatives.

Airlangga reveals sectors attracting EU investors

Coordinating Minister for Economic Affairs Airlangga Hartarto has identified renewable energy, digital industry, agriculture and electric vehicle downstreaming as key sectors of interest for European Union investors. The remarks come as Indonesia and the EU progress towards ratifying the Indonesia-EU Comprehensive Economic Partnership Agreement, targeted for implementation in 2027. Bilateral trade reached US$31.9 billion in 2025, with US$13.6 billion in EU investment entering Indonesia over the past five years.

KPK Seals Rector and Vice-Rector Offices at Unsoed Following Sting Operation

The Corruption Eradication Commission (KPK) has sealed several offices in the Rectorate Building of Jenderal Soedirman University (Unsoed) in Purwokerto, Central Java, following a sting operation allegedly involving the rector and vice-rectors. University spokesman Edi Santoso confirmed the sealing but said the institution has not yet received official information from the KPK regarding the case details or the legal status of those detained. The university has pledged to cooperate with and respect the ongoing legal process.

ATF 2026 offers diverse direct travel options to the public

The ASTINDO Travel Fair (ATF) 2026 will be held at PIK Avenue in Jakarta from 20 to 23 August 2026, bringing together travel agents, airlines, hotels, and tour operators under one roof. The event aims to provide a one-stop travel shopping experience where visitors can compare options and receive direct recommendations from travel professionals. Organisers emphasise that face-to-face interaction remains valuable despite technological developments and shifting consumer behaviour.

Bima Arya Urges Regional Heads to Shift Paradigm to Strengthen Ecological Justice

Deputy Home Affairs Minister Bima Arya Sugiarto has called on regional leaders to move beyond purely economic growth-oriented development and embrace sustainability across social, cultural, and ecological dimensions. Speaking at an environmental event in Pekanbaru, he stressed the need for meaningful involvement of indigenous communities and the integration of ecological balance into spatial planning. He also highlighted the role of environmental activists as a bridge between indigenous wisdom and policymakers.

Government Optimises Weather Modification Operations to Tackle Kalimantan Forest Fires

The Indonesian government is intensifying Weather Modification Operations (OMC) to combat forest and land fires across Kalimantan, with recent sorties in West and Central Kalimantan generating millions of cubic metres of rainfall. However, dry conditions and limited cloud formation are constraining further operations in Central Kalimantan, while thick smoke has hampered aerial firefighting efforts. Ground-based firefighting, patrols, and coordination across agencies remain central to the response.

Hashim Speaks Frankly: Prabowo-Gibran Programmes Are Good, But This Is Their Weakness

Hashim Djojohadikusumo, chairman of the Housing Task Force, has openly acknowledged that the main weakness of President Prabowo Subianto and Vice President Gibran Rakabuming Raka's government programmes lies in their execution. Speaking at a groundbreaking ceremony for affordable housing in Manggarai, Jakarta, he stressed that policy quality is ultimately determined by implementation. He cited the Free Nutritious Meals programme as an example requiring close monitoring from the outset.

Eka Tjipta's Son Steps Down as President Commissioner of Sinar Mas Multifinance

PT Sinar Mas Multifinance has reshuffled its board of commissioners and directors following its annual general meeting of shareholders. Indra Widjaja, son of the late Sinar Mas Group founder Eka Tjipta Widjaja, has been replaced as president commissioner by Putu Gde Wibawa. The appointments are subject to approval from the Financial Services Authority (OJK).

Berau Police Arrest Suspect in 12-Hectare Land Burning in Tanjung Batu

Police in Berau, East Kalimantan, have arrested a man identified as BS for allegedly setting fires that burned approximately 12 hectares of land in Tanjung Batu, Pulau Derawan District. The suspect reportedly acted on the orders of a landowner to clear land for oil palm planting, causing an estimated Rp1.2 billion in material losses. The case has been escalated to the investigation stage, with the suspect facing up to 12 years in prison and a fine of up to Rp10 billion.

Not Just Lending: How Banks Are Financing Green Business in New Ways

Bank DBS Indonesia's latest research highlights that sustainable projects require more than capital, with banks now playing an advisory role in project preparation and financing structures. The study examines five strategic sectors—energy, technology, food, mining, and health—where tailored financing instruments are being deployed to bridge sustainability targets with commercial viability. DBS has already provided significant green financing, including a Rp1.7 trillion green loan for a data centre and a Rp13.5 trillion sustainability-linked loan for Vale Indonesia.

Motorcyclist chokes driver in Tanjung Barat after being honked at

Police in South Jakarta are investigating a road rage incident in which a motorcyclist allegedly assaulted and choked a car driver near a petrol station in Tanjung Barat. The altercation began after the driver honked at the motorcyclist, who then blocked the car and attacked the victim. The case is being handled as suspected assault under Article 466 of the Criminal Code.

Chronology of Indonesian Navy Member Assaulted in Matraman, Perpetrator Arrested

A member of the Indonesian Navy was assaulted in Matraman, East Jakarta, following a minor traffic collision. Police have arrested a single suspect, identified as RY, who is accused of headbutting and injuring the victim. The suspect has been charged under Article 446 of the Criminal Code, which carries a maximum sentence of two years and six months.

How to check 2026 social assistance decile using NIK KTP on Cek Bansos

The Ministry of Social Affairs has enabled citizens to check their 2026 social assistance status and welfare decile using their national identity number (NIK) through the official Cek Bansos portal. The system uses the National Single Social and Economic Data (DTSEN) to classify households into ten deciles, with deciles 1 to 4 eligible for programmes such as PKH and basic food assistance. Citizens are advised to use only official channels and to protect their personal data from fraud.

PBNU Chairman stresses pesantren standardisation to prevent violence

Nahdlatul Ulama's top leader Yahya Cholil Staquf has called for standardised management of Islamic boarding schools, covering infrastructure, curriculum and caregiving methods, to prevent violence and misconduct against students. The initiative is part of PBNU's pesantren transformation agenda launched in 2022. Key elements of the proposed standards have already been adopted by the Religious Affairs Ministry as a reference for pesantren development.

Beware September! NTT Faces Threat of Land Movement and Landslides

The Geological Agency has warned of potential land movement across several Indonesian regions in September 2026, including East Nusa Tenggara (NTT). The agency has mapped areas at medium to medium-high risk, particularly in Flores Timur and Lembata regencies. Residents are urged to recognise early warning signs and take precautionary measures during heavy rainfall.

Customs and BNN Foil Smuggling of 2.6 Tonnes of Liquid Methamphetamine in Riau Islands

Indonesian authorities have intercepted approximately 2.6 tonnes of liquid methamphetamine and 1.57 million illicit cigarettes from a Tanzania-flagged vessel in the Riau Islands. The joint operation involving Customs, the National Narcotics Agency, and regional police is estimated to have saved over 14 million lives from potential drug abuse. Ten Myanmar nationals have been detained as investigations continue into the international smuggling network.

Dramatic Caesarean Operation Amid Aftershocks, Patient at Aeramo Regional Hospital Wears Helmet

Medical staff at Aeramo Regional Hospital in Nagekeo, East Nusa Tenggara, continued performing caesarean sections despite ongoing aftershocks following a recent earthquake. Radiographers have resorted to wearing helmets while working to protect themselves from potential building collapse. The hospital has delivered six babies since the earthquake, with some newborns experiencing respiratory problems.

Forest and land fires in West Kalimantan reach 38,310 hectares by August

Forest and land fires in West Kalimantan have burned 38,310.86 hectares from January to August 2026, according to the provincial disaster mitigation agency. Several districts with significant peatland areas, including Ketapang and Kubu Raya, are major contributors to the resulting haze. The provincial government has declared an emergency alert status and is deploying ground patrols, aerial monitoring, water bombing, and weather modification operations to tackle the fires.

House member urges national disaster status for Kalimantan forest fires

A member of Indonesia's House of Representatives has called on the government to declare the escalating forest and land fires in Kalimantan a national disaster. Daniel Johan of Commission IV said the fires are disrupting daily life, health and the local economy, and urged rapid deployment of firefighting resources. He also highlighted the closure of schools in affected areas such as Kubu Raya and Pontianak.

Behind Mandiri's Rp30 Trillion Profit, This Business Is Growing Rapidly

Bank Mandiri posted a consolidated net profit of Rp30.41 trillion in the first half of 2026, up 24.4% year-on-year, driven by an 18.8% expansion in consolidated lending to Rp1,677.45 trillion. The state-owned lender contributed an estimated 27.4% of the national credit increase, lifting overall industry loan growth by about 1.6 percentage points. Its financing to the government and SOE ecosystem surged 41.6% to Rp489 trillion, while micro and people's business credit portfolios also expanded.

Manggala Agni Jambi extinguishes forest and land fire in Tanjab Barat areca palm plantation

A joint team led by Manggala Agni is battling a one-hectare forest and land fire in an areca palm plantation in Tanjung Jabung Barat, Jambi. The fire is burning on shallow peatland, making it difficult to extinguish due to the risk of underground smouldering. Fallen areca palm trees are also posing a safety hazard to firefighters.

Kalawi Bridge in Padang to Be Rebuilt with Rp25.5 Billion Budget

The central government has confirmed the reconstruction of the Kalawi-Limau Manih Bridge in Padang, West Sumatra, which was damaged by a hydrometeorological disaster in late 2025. The bridge will be rebuilt as a steel truss structure spanning 70 to 80 metres, with a budget of Rp25.5 billion. Tender is scheduled for January 2027, with physical works expected to commence by late February 2027.

Indonesian police hunt Batam nightclub owner in drug case

Indonesian police have issued a wanted-person notice for Yuwanky, the owner of Planet Batam nightclubs, who is suspected of supplying drugs at his venues and is believed to be in Singapore. The manager of the Planet 1, 2, and 3 nightclubs, Basri Lemaiwang, was arrested in Malaysia and flown to Jakarta for questioning. Authorities are coordinating with Interpol to pursue Yuwanky, who is described as a repeat narcotics offender.

IEU-CEPA to Take Effect Next Year, Indonesia Targets 94% of Tariff Lines Eliminated

Indonesia expects the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) to be implemented from early next year, eliminating tariffs on 90.4% of tariff lines immediately and phasing out a further 8.37%. The agreement is seen as a game changer for trade, investment, and supply chain diversification, with signing targeted for October and ratification to follow in both the European Parliament and Indonesia.

Four Suspects in Fatal Beating of British Man in Kuta Flee to Australia

Police in Denpasar have identified four Australian nationals suspected of fatally assaulting British citizen Paul Innes Dougan at a bar in Kuta. The suspects left Indonesia the day after the incident, and investigators are now examining their roles and relationships. The victim died on 20 August 2026 after receiving intensive care at BIMC Hospital.