Indonesian Political, Business & Finance News

Archive: 21 August 2026

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Indonesia's Data Centre Business Projected to Grow Rapidly, TLKM and ISAT Seen as Top Picks

Indonesia's data centre industry is still in its early growth stage despite a large expansion pipeline, with installed IT capacity projected to surge from around 580 MW in the first half of 2026 to 3.5 GW by 2030. Growth is driven by rising demand for cloud services and AI infrastructure, with Jakarta and Batam emerging as the main development hubs. Analysts at BRI Danareksa Sekuritas highlight Telkom Indonesia, Indosat, Dian Swastatika Sentosa, and DCI Indonesia as having the largest direct exposure to the sector.

Parents in Pontianak Request School Closures Amid Thick Haze from Forest and Land Fires

Parents in Pontianak, West Kalimantan, are urging the local education authority to close schools or switch to online learning as thick haze from forest and land fires blankets the city. Air quality has reached hazardous levels, with an AQI of 491 recorded on 21 August 2026, raising serious health concerns for children. Authorities have detected 3,759 hotspots across West Kalimantan, with Ketapang Regency recording the highest number.

Japan Hit by Highest Inflation This Year as Energy Prices Surge

Japan's headline inflation reached 1.9% year-on-year in July 2026, the highest level this year, driven by rising energy costs amid the Iran war and Middle East conflict. Core inflation stood at 1.8%, while producer price inflation hit 7.2%, with electricity costs the largest contributor. The data strengthens expectations that the Bank of Japan may raise interest rates in September.

Forest Fire Haze Disrupts Flights in Kalimantan, Several Flights Cancelled

Thick haze from forest and land fires has disrupted flight operations at several airports in Kalimantan, leading to cancellations and delays. The Ministry of Transportation is monitoring visibility conditions closely, prioritising aviation safety while coordinating with airlines and airport authorities. Affected passengers are being offered full refunds or free rescheduling within seven days.

Green Shipping Becomes Strategy Towards Net-Zero Emissions

Indonesia is accelerating its transition to low-emission shipping through the Green Shipping 2026 Forum, held in Jakarta on 19 August 2026. The forum focused on energy efficiency and low-carbon fuels as part of the national decarbonisation agenda, aligned with the IMO Net-Zero Framework. PT BKI emphasised biodiesel as a short-term option and e-methanol as a long-term solution, while strengthening technical rules and emission verification.

Peatland Fire in Betara, Jambi: Hundreds of Areca Palm Trees Toppled

A severe peatland fire in Betara, Tanjung Jabung Barat, Jambi, has caused hundreds of productive areca palm trees to collapse over two days. Firefighting teams from Manggala Agni and the local task force are struggling to extinguish underground flames due to water shortages, strong winds, and the danger of falling burnt trees. The fire was first detected by drone patrol on Thursday and continues to smoulder beneath the peat surface.

Vice President Gibran Witnesses Mosque Collapse Following NTT Earthquake

Vice President Gibran Rakabuming visited the earthquake-devastated village of Kampung Waso in East Manggarai, NTT, where he witnessed the destruction of a mosque and numerous homes. He urged the immediate establishment of emergency hospitals and the acceleration of repairs to irrigation, places of worship, and schools. The earthquake has claimed 24 lives and displaced nearly 20,000 people.

Joint Operation Foils Smuggling of 2.6 Tonnes of Liquid Methamphetamine and 1.57 Million Illegal Cigarettes in Riau Islands

Indonesian authorities have intercepted a Tanzania-flagged vessel carrying approximately 2.6 tonnes of liquid methamphetamine and 1.57 million illicit cigarettes in the waters of the Riau Islands. The joint operation involving Customs, the National Narcotics Agency, and regional police is estimated to have saved around 14.15 million people from potential drug abuse. Ten Myanmar nationals have been detained as investigations continue into the international smuggling network.

Hashim reminds of fairness principle in Manggarai Affordable Housing programme

Housing Task Force Chairman Hashim Djojohadikusumo has urged that the Manggarai Affordable Housing programme be implemented fairly, with a strict one-applicant-one-unit policy to prevent bulk purchases and nominee arrangements. He also announced plans to expand affordable housing under the Transit Oriented Development concept at strategic railway station sites across Indonesia. The Manggarai project will deliver 3,784 units in eight towers and is targeted for completion within 18 months.

Ministry of Religious Affairs Trains Hundreds of Students as Peer Educators to Prevent Child Marriage

Indonesia's Ministry of Religious Affairs has trained 480 madrasah and school students as peer educators to support child marriage prevention efforts. The programme, running from 2024 to 2026, equips students with knowledge on reproductive health, children's rights, and peer counselling skills. The ministry has also appointed 90 students from eight provinces as National Peer Educator Ambassadors to expand outreach among adolescents.

Indonesia, Malaysia deepen academic and cultural ties at Madani forum

Indonesia and Malaysia have reinforced their cultural and academic cooperation through the Madani Malaysia-Indonesia forum, with a focus on shared heritage and religious affairs. Culture Minister Fadli Zon highlighted joint efforts such as the UNESCO nomination of the kebaya and the extended inscription of Mak Yong theatre, reflecting the two nations' common historical and linguistic roots. The event is intended to inspire broader progress among Muslim communities in Southeast Asia.

Regional Transaction Digitalisation Seen as Able to Strengthen Locally Generated Revenue

The Ministry of Home Affairs is urging regional governments to develop integrated digital transaction ecosystems to boost locally generated revenue (PAD), broaden the tax base, and reduce revenue leakage. The ministry emphasises a shift from digital payment to digital revenue management, using transaction data for oversight and policy-making. Regional digitalisation acceleration teams are expected to drive coordination among local governments, banks, and payment system providers.

Guangdong China Increases Investment in Indonesia, Targeting New Energy and Local Manufacturing Industries

Guangdong Province in China is strengthening investment cooperation with Indonesia, focusing on downstream new energy industries and light manufacturing. The collaboration aims to boost Indonesia's local industrial growth while opening expansion opportunities for Guangdong companies in Southeast Asia. Key sectors include electric vehicle battery materials, smart home appliances, and consumer electronics.

Ministry of Hajj and Umrah Finds 400,000 Invalid Pilgrim Data with Rp10 Trillion Initial Deposits, BPKH Responds

The Ministry of Hajj and Umrah has identified approximately 400,000 potentially invalid entries in the hajj waiting list, involving around Rp10 trillion in initial deposits. BPKH has stated its readiness to support the validation and reconciliation process, noting that the funds are already managed under its sharia-compliant general fund scheme.

Unsoed says KPK sealed leadership rooms in rectorate building

The Corruption Eradication Commission (KPK) has sealed the rector's office and all vice-rector rooms at Jenderal Soedirman University in Purwokerto following a sting operation. University officials confirmed the sealing but said they have not received official information about the case or the legal status of those involved. The university has pledged to respect the ongoing legal process.

Vice President appreciates youth involvement in NTT disaster recovery

Vice President Gibran Rakabuming has praised university students and young people for their role in supporting recovery efforts for communities affected by disasters in Flores, East Nusa Tenggara. He facilitated six psychology students from the University of Indonesia to provide psychological first aid to children in evacuation shelters. The Vice President encouraged continued, coordinated youth participation in disaster response alongside local governments.

Government targets IEU-CEPA ratification by October 2026

The Indonesian government aims to complete the signing of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) by October 2026, with ratification to follow in both parliaments. Coordinating Minister for Economic Affairs Airlangga Hartarto described the agreement as a game changer that would eliminate tariffs on 90 percent of tariff lines and unlock European investment. The agreement is expected to enter into force in early 2027.

Unsoed Rector Akhmad Sodiq Caught in KPK Sting Operation Has Assets Worth Rp3.1 Billion

Akhmad Sodiq, Rector of Jenderal Soedirman University, has been arrested in a Corruption Eradication Commission (KPK) sting operation over alleged manipulation of new student admissions. His official wealth report shows total assets of Rp3.12 billion, including land and buildings in Banyumas valued at Rp2.5 billion. The case highlights concerns about transactional practices at the very entrance to higher education.

Foreign Investors Quietly Pile into State-Owned Banks, Net Buy Reaches Rp362 Billion

Foreign investors recorded a net buy of Rp362.65 billion across all markets during the first trading session on Friday, with state-owned banks dominating the buying. Bank Rakyat Indonesia led the inflows with a net buy of Rp379.24 billion, followed by Bank Central Asia and Chandra Asri Pacific. The Jakarta Composite Index strengthened 0.52% to 6,535.57, supported by gains in the utilities, financial, and primary consumer sectors.

Health Ministry: ISPA cases in 2026 reach 400,000 per week, forest fires having impact

Indonesia's Health Ministry reports that acute respiratory infection (ISPA) cases have surged past 400,000 per week in early 2026, exceeding the same period last year. The ministry attributes the rise to the dry season and the impact of forest and land fires (karhutla). Health workers and medical supplies have been deployed to affected regions, with the public urged to take preventive measures.

Defence Minister Sjafrie Receives Chinese Counterpart in Indonesia

Indonesian Defence Minister Sjafrie Sjamsoeddin hosted Chinese Defence Minister Admiral Dong Jun at the Ministry of Defence in Jakarta on Friday. The visit included a state ceremony and discussions on strengthening defence cooperation. Sjafrie invited joint military exercises between the Indonesian and Chinese armed forces.

KPK says Bogor Regency investigation relates to salary deductions for tax collectors

The Corruption Eradication Commission (KPK) has confirmed that its investigation into alleged corruption within the Bogor Regency government concerns state officials receiving money from deductions to the salaries of tax collectors at the regional revenue agency. The anti-graft body has not yet named any suspects or disclosed the identities of those allegedly involved. The investigation follows reports of a sting operation in Bogor Regency, which the KPK clarified did not take place.

Kepulauan Seribu provides civil administration services to residents through Lantas Samudera

The Kepulauan Seribu administration has launched the 'Lantas Samudera' programme to ensure residents across the archipelago can access civil registration services without geographical barriers. The initiative integrates existing services such as 'Dukcapil Guru Tamu', 'Seribu Pulau Satu Data', and 'Pagi Samudera' to strengthen citizens' civil rights. Officials have been conducting monitoring activities across six urban villages and district service counters, assuring residents that all services are free of charge.

Airlangga Reveals Fate of Tax Holiday Incentive in 2027

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the government will continue discussions on extending the tax holiday incentive for pioneer industries until 2027. The Ministry of Finance has noted that the effectiveness of the tax holiday is declining due to the implementation of the Global Minimum Tax. A new tax incentive scheme may be required as the 15% global minimum tax significantly reduces the appeal of long-term corporate tax exemptions.

Indonesian Air Force Deploys Air Assets to Reach Isolated Areas in NTT

The Indonesian Air Force (TNI AU) has intensified its air operations on the sixth day of disaster response in East Nusa Tenggara, focusing on accelerating logistics distribution and medical evacuation in areas cut off by damaged land and sea routes. Helicopters and transport aircraft have been deployed to deliver aid directly to isolated communities, including Pulau Palue, while aerial photography is being used to map affected regions. The operation is being conducted jointly with the Army, Navy, Police, Basarnas and BNPB, with further missions planned for Manggarai and Pulau Pantar.

Andre Rosiade: Prabowo Allocates Rp1 Trillion to Improve Padang PDAM, Palukahan SPAM to Be Built Soon

The central government has allocated nearly Rp1 trillion to restore and improve clean water services in Padang, West Sumatra, following infrastructure damage from recent disasters. The funds include the construction of the Palukahan drinking water supply system (SPAM) and a replacement for the ageing Gunung Pangilun water treatment plant. Officials say the projects aim to end complaints about poor water quality and ensure the city meets national health standards by 2028.

Barito River Recedes, Sandbanks and Land Emerge in the Middle of the Water Flow

The Barito River in Central Kalimantan has receded significantly since early August, causing sandbanks and land to emerge in the middle of the waterway. The shallowing has disrupted water transport, with cargo ships and barges struggling to navigate and distribution activities affected. The river is a vital route for moving goods and supplies to communities along its banks.

Teachers and Students in Gianyar Receive Financial Literacy Training to Prevent Online Loan and Gambling Traps

Maybank has provided financial literacy education to teachers and students across 40 schools in Gianyar, Bali, focusing on primary schools. The programme aims to equip participants with money management skills to avoid falling into online loan and online gambling traps. The initiative is part of Maybank's sustainability efforts and is intended to be an ongoing programme.

Fires Ravage Indonesia, Firefighters Battle Blazes as Weather Modification Operations Prepared

Indonesia's disaster agency has recorded 1,532 disaster events so far in 2026, including 454 forest and land fires, with new outbreaks reported across Kalimantan and East Java. The government is prioritising fire suppression in six provinces, deploying air task forces and helicopters for patrol, water bombing, and weather modification. Weather modification operations are scheduled to begin in East Kalimantan on 22 August and West Kalimantan on 23 August to assist firefighting efforts during the El Niño-affected dry season.

BI Records Indonesia's Money Supply Reaches Rp10,371 Trillion, Growing 8.3%

Bank Indonesia reported that broad money supply (M2) grew 8.3% year-on-year in July 2026 to Rp10,371.1 trillion, continuing the positive trend from June. The growth was driven by a 10.0% increase in narrow money (M1) and a 5.6% rise in quasi-money, supported by stronger credit disbursement.

Ruben Onsu named suspect in Rp3.5 billion investment embezzlement case

Celebrity Ruben Samuel Onsu has been named a suspect in an alleged fraud and embezzlement case involving Rp3.5 billion in investment funds. The case was reported to the South Jakarta Metropolitan Police and is being investigated under multiple articles of the Criminal Code. Onsu faces a maximum prison sentence of four years if convicted.

Nothing's new OWS, the CMF Clip Pro, debuts in Indonesia

Nothing has launched its new open wearable stereo earbuds, the CMF Clip Pro, in Indonesia through Erajaya Digital. The device features a 10.8mm bass driver, Hi-Res Audio with LDAC support, and a Smart Dial for controls. Priced at Rp1,699,000, it is available through Erajaya's retail network and online platforms.

With 'Laku' Theme, Yogyakarta Literary Festival 2026 Affirms Literature as Part of City Culture

The Yogyakarta City Government is holding the 2026 Yogyakarta Literary Festival (FSY) from 23–30 August with the theme 'Laku', meaning practice or process. The festival aims to position literature as an integral part of urban cultural life, involving around 100 speakers, 36 sessions, and 12 literary communities. Organisers emphasise that the event is a collaborative effort between government and civil society, remaining free and accessible to the public.

Kalimantan Forest Fires: Government Deploys 12,000 Personnel and Constructs Boreholes

The Indonesian government has mobilised over 12,800 personnel across three priority provinces in Kalimantan to combat forest and land fires. Operations include ground patrols, water bombing, and the construction of boreholes to address dwindling surface water supplies. The coordinated effort involves multiple ministries, the military, police, and local communities.

Strategic Partnerships Key to Indonesia Mastering Mineral Technology

Indonesian officials argue that strategic partnerships are essential for the country to move beyond exporting raw minerals and gain control over downstream processing technology. Danantara's CTO and the Deputy Minister for Investment and Downstreaming both highlighted the need for foreign collaboration to address weaknesses in research and development. The ongoing electric vehicle battery project with CATL in Karawang is cited as a key example of this approach.

ITDC records 17 percent growth in tourist visits to Mandalika

State-owned tourism developer ITDC reported a 17 percent year-on-year increase in tourist visits to the Mandalika Special Economic Zone in the first half of 2026, totalling 685,844 visitors. The figure exceeded the company's target by 124 percent, with average occupancy rates rising from 44.94 percent to 50.95 percent. The upcoming Pertamina Grand Prix of Indonesia 2026 is expected to further boost growth and economic impact across the region.

Banten Governor responds to Suralaya coal plant as contributor to Jakarta pollution

Banten Governor Andra Soni has acknowledged that coal-fired power plants in Suralaya, Cilegon, contribute to air pollution affecting Jakarta. He pledged to strengthen monitoring and cross-sector coordination while accelerating the transition to renewable energy. Jakarta Governor Pramono Anung previously identified the Suralaya plant as a key source of emissions and called for central government coordination to regulate industries in the capital's surrounding areas.

BNPB Chief Reveals Logistics Distribution Data in NTT After Major Earthquake

The National Disaster Management Agency (BNPB) has detailed the distribution of relief supplies to East Nusa Tenggara following a magnitude 7.7 earthquake, with 411 tonnes of aid dispatched between 15 and 19 August 2026. Challenges remain, including shortages of clean water and electricity at evacuation posts. The death toll has risen to 83, with East Manggarai Regency the worst-affected area.

When Will Rain Drench Kalimantan After Severe Fires? Here's What BMKG Says

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) forecasts that most of the country will remain dry over the coming week, though some areas may still see moderate to heavy localised rain. The dry conditions, linked to a very strong El Niño and a positive Indian Ocean Dipole, have contributed to forest and land fires in Sumatra and Kalimantan. BMKG has issued warnings for potential rain and strong winds in several regions between 21 and 27 August 2026.

Houthis Attack Saudi Airport and Aramco Facilities

Yemen's Houthi rebels have claimed drone strikes on Najran airport and Aramco oil facilities in southern Saudi Arabia. The attacks follow an Iranian Revolutionary Guard warning that Saudi Arabia would not be able to withstand the Houthis. The escalation comes after the collapse of a 2022 ceasefire and Houthi threats to seize territory along the Bab al-Mandab Strait.

DPR member urges PPPK teacher status fix to also address governance

House of Representatives Commission II member Romy Soekarno has called on the government to use the ongoing improvement of PPPK teacher employment status as momentum for national education human resources governance reform. He highlighted structural problems in teacher distribution, regional fiscal capacity gaps, and mismatches between teacher needs and civil service formation planning. Soekarno urged a merit-based, data-driven approach that prioritises disadvantaged, frontier, and outermost regions.

Sarawak orders two-day school closures as haze worsens, affecting around 200,000 students

Nearly 600 schools across Sarawak have been closed for two days as haze from forest and land fires in Kalimantan pushes air quality to 'very unhealthy' levels, affecting almost 200,000 students. Malaysian authorities have linked the transboundary haze to over 7,000 hotspots detected in Kalimantan, while Indonesian officials prepare cloud seeding operations to combat the fires. The closures highlight the growing regional impact of Indonesia's land and forest fires on public health and education.

Biak Resident Saved by BPJS Kesehatan for Child's Hospital Treatment

A father in Biak, Papua, has praised the National Health Insurance (JKN) programme after his child received rapid emergency treatment at a naval hospital. The child's JKN membership had lapsed, but local government assistance enabled it to be reactivated. The case highlights the importance of maintaining active health insurance coverage.

When Climate Change Tests Indonesia's Water Resilience

Indonesia faces a recurring paradox of floods in the wet season and water shortages in the dry season, a pattern increasingly driven by climate change. The article argues that the country's water security policies remain too focused on infrastructure and too fragmented across sectors to address the growing risks. It calls for a more integrated approach that reduces both flood and drought vulnerability simultaneously.

Data Centre War Is Just Drama, Many Are Just Big Talk

The rush to build data centres in the United States has triggered political backlash, but many announced projects lack funding, permits, or power supply. Analysts note that only a fraction of proposed developments are likely to be realised, with speculative announcements far outpacing actual construction. The real constraints are electricity, chips, and skilled workers rather than local opposition or new regulations.

NTT Earthquake Update: Death Toll Rises to 83

The death toll from the M 7.7 earthquake in Nagekeo, East Nusa Tenggara, has risen to 83, with over 1,000 people affected. East Manggarai Regency remains the hardest-hit area, while thousands of aftershocks continue to be recorded. Food supplies for displaced residents in several areas are beginning to run low as aid distribution remains incomplete.

KKP: Indonesian seaweed and agar-agar exempt from additional US tariffs

Indonesian seaweed and agar-agar products have been exempted from the additional 10 percent Section 301 tariffs imposed by the United States, leaving them subject only to a zero percent most-favoured-nation rate. The Ministry of Marine Affairs and Fisheries views this as an opportunity to expand market share and strengthen competitiveness in the US market.

House Commission IX pushes for PPPK health workers to be appointed as civil servants

Deputy Chairman of House Commission IX Charles Honoris has urged the government to allow health workers with government work agreements (PPPK) to be appointed as civil servants (PNS). He stressed that status certainty is essential to guarantee welfare and maintain the quality of public health services. The call follows a recent policy allowing PPPK teachers to become PNS through selection planned for early 2027.

Hospital in Nagekeo After Earthquake: Cracked Rooms, Patients Treated in Hot Tents

RSUD Aeramo in Nagekeo Regency, East Nusa Tenggara, has been severely damaged by a magnitude 7.7 earthquake, forcing medical services and operations to be conducted in emergency tents. The hospital building has suffered extensive cracking and partial collapse, leaving only the radiology unit still operational indoors. Patients and medical staff are enduring hot, dusty conditions in the tents, with some family members forced to sleep outside on mats.

Kali Mampang embankment repair targeted for completion in early September

The repair of the Kali Mampang embankment along Jalan Poncol Jaya in South Jakarta is expected to be completed by early September 2026. The work, which began on 17 July 2026, covers 300 metres of embankment with a height of 310 centimetres and is being carried out as an anticipatory measure ahead of the rainy season. Local residents have welcomed the repairs, noting that the previous condition of the embankment was concerning.