Indonesian Political, Business & Finance News

Archive: 21 August 2026

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Barantin releases Rp40.8 billion tropical commodity exports to China

Indonesia's Quarantine Agency (Barantin) and the Banten provincial government have dispatched three flagship tropical commodities—mangosteen, crab, and swiftlet nest—worth over Rp40.8 billion to China. The export release was conducted under the 'Merdeka Ekspor' programme to boost local product competitiveness in global markets. Barantin also introduced an Export Clinic service to help MSMEs and farmers meet international standards.

NASA Satellite Mission Reveals 'Hidden Freeze' Phenomenon in the Arctic

A new study using NASA satellite data has identified a 'hidden freeze' phenomenon beneath the surface of Arctic soil. The discovery offers researchers a new perspective on the dynamics of permafrost freezing and thawing in the polar region. It is expected to improve the accuracy of carbon emission estimates from the Arctic.

BRI Group Manages 153 Tonnes of Gold through Ultra Micro Ecosystem

BRI Group, through its Ultra Micro Holding, has reached 153 tonnes of gold under management across deposits, pawnbroking, savings, instalment schemes, and bullion trading. The achievement aligns with President Prabowo Subianto's emphasis on the strategic role of Bank Emas Indonesia in optimising national wealth. BRI Group CEO Hery Gunardi said the ecosystem's growth potential remains substantial as it evolves from expanding financing access to helping communities build assets.

Indonesian Investment Surges, Capital and Financial Account Posts US$12 Billion Surplus

Indonesia's balance of payments deficit narrowed to US$900 million in the second quarter of 2026, down from US$4 billion in the previous quarter. The improvement was driven by a US$12 billion surplus in the capital and financial account, reflecting stronger foreign direct and portfolio investment inflows. Bank Indonesia attributed the gains to positive investor perceptions of the domestic economy and attractive financial instrument yields.

Sugiono: Indonesia-China CSD guides bilateral partnership across five pillars

Indonesia and China have officially launched a Comprehensive Strategic Dialogue (CSD) as a new platform to strengthen bilateral cooperation across five key pillars: politics, economy, maritime affairs, people-to-people relations, and security. The inaugural meeting also marked the start of discussions on the Indonesia-China Action Plan 2027-2031, succeeding the 2022-2026 plan. Foreign Minister Sugiono expressed hope that the dialogue would produce concrete and mutually beneficial outcomes.

BI: Q2 2026 balance of payments deficit at 0.9 billion US dollars

Bank Indonesia reported that Indonesia's balance of payments deficit narrowed sharply to 0.9 billion US dollars in the second quarter of 2026, down from 9.1 billion US dollars in the previous quarter. The improvement was driven by a surplus in the capital and financial account, while the current account deficit widened due to higher oil imports and primary income payments. Foreign exchange reserves remained robust at 145.6 billion US dollars, equivalent to 5.6 months of imports.

Unsoed Rector Arrested by KPK, Here's What the Minister of Higher Education Says

The Ministry of Higher Education, Science, and Technology has stated it respects the legal process following the Corruption Eradication Commission's arrest of senior officials at Jenderal Soedirman University over alleged bribery in new student admissions. Minister Brian Yuliarto said the ministry will monitor developments and coordinate within its authority while leaving law enforcement entirely to the KPK. He urged the university's academic community to maintain a conducive atmosphere and uphold integrity and good governance.

Turning Rice Straw Waste into Organic Fertiliser

Farmers in Hulu Sungai Selatan, South Kalimantan, are shifting from burning rice straw to producing organic compost through a government-funded circular economy programme. The initiative, led by academics from Lambung Mangkurat University and STIPER Amuntai, has sharply increased farmer understanding and is projected to cut chemical fertiliser costs by up to Rp4.5 million per hectare.

After Hundreds of Years, Mosquitoes Suddenly Appear in Iceland

Iceland's centuries-old status as one of the few places on Earth without mosquitoes has ended after three specimens were discovered near Reykjavík in October 2025. Scientists identified the insects as Culiseta annulata, a cold-tolerant species common in northern Europe. The discovery coincides with Iceland recording its warmest year since instrumental measurements began.

Prabowo Allocates Rp175 Billion, Andre Rosiade Confirms Gunung Nago Bridge and Sabo Dam Construction to Begin in November

The Indonesian government has allocated Rp175 billion for permanent post-disaster rehabilitation of the Gunung Nago area in Padang, West Sumatra, following the devastating November 2025 galodo disaster. Deputy Chairman of House Commission VI Andre Rosiade confirmed that tendering will conclude by October 2026, with physical works commencing in November 2026. The project forms part of a broader Rp19 trillion rehabilitation and reconstruction package for West Sumatra.

Video: US to Buy Back Larger Debt as IHSG Soars 1.68%

Indonesia's benchmark stock index, the IHSG, extended its rally on Friday morning, climbing 1.68% to 6,501, while the rupiah strengthened against the US dollar. Gold prices remained under pressure due to the Federal Reserve's policy direction and inflation concerns, whereas oil prices rose amid threats of an economic war between the US and Iran.

Homes in Paseban, Central Jakarta, Destroyed by Fire

A fire that broke out on Thursday evening in the densely populated Paseban area of Senen, Central Jakarta, has destroyed several homes, leaving only walls standing. No casualties were reported, but 120 residents have been displaced and are taking shelter while authorities investigate the cause.

Deputy Manpower Minister: Cross-sector collaboration expands reach of HR training

Deputy Manpower Minister Afriansyah Noor has emphasised the importance of cross-sector collaboration in widening access to skills training and ensuring that the competencies taught match labour market demand. He highlighted a competency-based training programme run by the Medan Vocational and Productivity Training Centre in partnership with local government, industry, educational institutions and other partners. The minister also closed a housekeeping training course for participants with disabilities, organised with Plan International Indonesia.

Trump Threatens Nations Supporting Iran, Tehran Says US Has Failed

US President Donald Trump has threatened severe economic consequences for any country providing assistance to Iran, as Washington seeks to end the war that erupted after US and Israeli strikes on Iran in late February. Iranian Foreign Minister Abbas Araghchi dismissed the threat as a continuation of failed American policy, accusing Washington of economic terrorism. The conflict has destabilised the Strait of Hormuz, a vital energy trade route, while China remains Iran's largest oil buyer.

Bontang Mayor Calls for Stronger TJSLP Synergy at Award Ceremony

Bontang Mayor Neni Moerniaeni has urged companies to strengthen their corporate social responsibility (TJSLP) programmes, setting ambitious targets including eliminating red PROPER ratings and increasing local employment. Speaking at the TJSLP Award 2025 in Makassar, she highlighted the city's success in securing Rp3 billion from the Home Affairs Ministry for unemployment programmes. The mayor also called for greater alignment between corporate TJSLP funds and regional development plans.

UI Palestine Centre Affirms Commitment to Palestinian Solidarity and Independence

The University of Indonesia's newly established Palestine Centre has reaffirmed its institutional commitment to advancing Palestinian independence through academic research, advocacy, and cross-sector collaboration. The centre aims to become a leading hub for Palestine studies in Indonesia and Southeast Asia, producing evidence-based research to support Palestinian sovereignty and justice. Its launch event brought together academics, civil society organisations, and international partners to strengthen solidarity networks.

Police Arrest One Perpetrator of Private Land Burning in South Kalimantan

Police in Hulu Sungai Selatan, South Kalimantan, have detained a man suspected of illegally clearing private land by fire. The suspect allegedly acted on the orders of another party and used a burning bamboo pole to ignite the plot. The arrest highlights ongoing enforcement efforts against land burning practices in the region.

Seawater Begins Entering Shrinking Mahakam River in East Kalimantan

Seawater has started entering the Mahakam River in East Kalimantan as its flow decreases due to the dry season, though authorities say it has not yet affected raw water intake for public supply. The shrinking river also poses a threat to the endangered Mahakam dolphin, with conservationists urging residents to report sightings of stranded animals.

Indonesia's Health Worker Civil Servants Reach 883.7 Thousand, 65% Are Permanent Employees

Indonesia's health workforce within the civil service totals 883,716 as of 30 June 2026, according to the National Civil Service Agency. Permanent civil servants (PNS) make up 65% of the total, with the remainder employed under contract schemes. The data also reveals a predominantly female, millennial workforce largely employed by regional governments.

UI Rector reminds graduates to provide solutions and benefits for society

Universitas Indonesia Rector Prof Heri Hermansyah has urged the university's newest graduates to apply their knowledge and competencies to produce solutions and benefit society. The call was made during the graduation ceremony in Depok, where 4,141 graduates achieved cum laude and 421 summa cum laude from a total of 10,329 graduates. The event also featured graduation speeches from government, professional, and entrepreneurial figures.

Forest and Land Fires in Lamandau, Central Kalimantan: Flames Nearly Engulf Main Substation and Transmission Lines

Forest and land fires in Lamandau Regency, Central Kalimantan, have burned an estimated 30 to 40 hectares and came dangerously close to a state electricity substation and four high-voltage transmission line points. The regent reported that the fires are now under control and the critical infrastructure is safe, though crews remain on high alert due to strong winds and deep peatland conditions.

Sjafrie Invites Chinese Armed Forces to Joint Exercise with TNI

Indonesian Defence Minister Sjafrie Sjamsoeddin has invited the Chinese armed forces to participate in joint exercises with the Indonesian National Armed Forces (TNI), including the Heping Garuda exercise. The two countries also agreed to expand personnel exchanges and defence industry cooperation. Chinese Defence Minister Admiral Dong Jun expressed hope for stronger bilateral defence ties under the leadership of President Xi Jinping and President Prabowo Subianto.

East Jakarta tightens monitoring of slippery Kramat Jati road following fatal accident

The East Jakarta city administration is intensifying oversight of slippery road conditions around Pasar Kramat Jati after a student was killed in a traffic accident. The move follows direct instructions from Jakarta Governor Pramono Anung to create a safe, clean and orderly urban environment while ensuring economic activity continues. Authorities are coordinating with market operator Perumda Pasar Jaya and other agencies to address hazards from wet-market waste water while mapping options for traders to continue operating in compliance with regulations.

Israel Refuses to Prosecute WCK Aid Worker Killings in Gaza, Australia Furious

Australia has summoned the Israeli ambassador after Israel's military decided not to pursue criminal proceedings over the April 2024 strike that killed seven World Central Kitchen aid workers, including Australian national Zomi Frankcom. Foreign Minister Penny Wong expressed outrage, stating the decision falls far short of the accountability expected from democratic nations. Canberra is now considering further diplomatic steps.

Unsoed Rector Caught in KPK Sting Operation over Alleged Bribery in New Student Admissions

The Corruption Eradication Commission (KPK) has arrested the Rector of Jenderal Soedirman University, Prof Akhmad Sodiq, along with 13 other individuals in a sting operation related to alleged bribery in new student admissions. A total of 14 people were detained across Purwokerto and Jakarta, with nine currently undergoing questioning at the KPK headquarters. The anti-graft body expressed regret over suspected corruption within the education sector.

Popular: Unsoed OTT to Ruben Onsu named fraud suspect

A roundup of top stories includes a KPK sting operation at Universitas Jenderal Soedirman over new student admissions, and presenter Ruben Onsu being named a suspect in an investment fraud case. The government also reaffirmed Bank Indonesia's independence, while Indonesia prioritises solar-based industrial transformation.

British Man Dies After Allegedly Being Assaulted by Four Foreign Nationals at Kuta Bar

A British national, Paul Innes Dougan, has died in Bali after allegedly being attacked by four foreign nationals at a bar in Kuta. He had been receiving hospital treatment for nearly two weeks before succumbing to his injuries. Police are investigating the incident, which was only reported after his death.

Latest Data on Civil Servant Teachers: 2.33 Million People, Majority Are Permanent Civil Servants

Indonesia's civil servant teacher workforce reached 2.33 million as of 30 June 2026, according to the National Civil Service Agency. Permanent civil servants (PNS) make up the largest share at 47 per cent, followed by government employees with work agreements (PPPK). The data highlights the government's prioritisation of PPPK teacher recruitment to meet education sector needs.

US Tightens Sanctions against Hezbollah

The United States has imposed new sanctions on a network accused of financing Hezbollah, targeting ten individuals involved in moving money for the Lebanese armed group. Washington also updated its terrorist designation of Hezbollah to emphasise that the group operates on behalf of Iran under the command of the Islamic Revolutionary Guard Corps. The measures are intended to disrupt Hezbollah's access to foreign currency outside the formal financial system.

Navy Member Assaulted in Matraman After Motorcycle Collision

A member of the Indonesian Navy was assaulted in Matraman, East Jakarta, following a minor motorcycle collision. Police have arrested one suspect, identified as RY, who is accused of headbutting and kicking the victim. The suspect is being held under the new Criminal Code's assault provisions.

MBR, Come Closer! KAI Builds 8 Tower Blocks Near Manggarai Station

State-owned railway operator PT Kereta Api Indonesia (KAI) has commenced construction of an affordable housing complex near Manggarai Station in Jakarta. The project will deliver 3,784 residential units across eight towers on 2.2 hectares of KAI-owned land, targeting low-income communities in a strategic urban area. The development also includes 150 retail units and is scheduled for completion within 18 months.

Rupiah Strengthens, US Dollar Falls to Rp17,695

The Indonesian rupiah strengthened against the US dollar on Friday morning, breaking below the Rp17,700 level. The appreciation was supported by a weaker dollar and an improved balance of payments, with Bank Indonesia reporting a sharply reduced current account deficit for the second quarter of 2026.

Indonesia's Current Account Deficit Hits US$12.5 Billion, Equivalent to 3.3% of GDP

Bank Indonesia reported that the current account deficit widened sharply to US$12.5 billion, or 3.3% of GDP, in the second quarter of 2026. The central bank attributed the increase to temporary factors including higher oil imports amid elevated global oil prices and stronger non-oil imports to support domestic economic activity. The deficit marks a significant deterioration from the US$3.6 billion, or 1.0% of GDP, recorded in the previous quarter.

President Prabowo Highlights Gold Bank Potential, BRI Group Manages 153 Tonnes of Gold Ecosystem via Ultra Micro Holding

President Prabowo Subianto has underscored the strategic potential of Indonesia's Gold Bank as a means to optimise national wealth. BRI Group, through its Ultra Micro Holding and Pegadaian, currently manages a gold ecosystem of 153 tonnes spanning deposits, pawnbroking, savings, and bullion trading. The initiative is positioned as a key step in integrating the gold value chain from upstream to downstream while expanding financial inclusion.

USS Abraham Lincoln Finally Departs the Middle East

The USS George Washington carrier strike group has arrived in the Middle East to relieve the USS Abraham Lincoln, which had been deployed for over 240 days amid mounting reports of deteriorating conditions aboard. The extended deployment, ordered by President Donald Trump during the war against Iran, drew sharp criticism from Washington politicians and raised concerns over crew welfare. The Lincoln's departure leaves no US aircraft carrier in the Pacific, a development seen as advantageous to China's growing regional assertiveness.

Scientists Create 'Plasma Gun', a Laundry Solution for Astronauts on the Space Station

Researchers have developed a plasma-based 'laundry gun' that can clean astronauts' clothing without water, addressing a long-standing hygiene challenge aboard the International Space Station. The device uses cold plasma to break down dirt, eliminate odours, and kill bacteria without damaging fabrics. The innovation is expected to improve payload efficiency and support future long-duration missions to the Moon and Mars.

USM Community Service Team Trains Pokdarwis in Nglurah to Create Low-Cost Virtual Tours and Smart Brochures

A community service team from Universitas Semarang has trained the Kampung Sewu Kembang tourism awareness group in Karanganyar, Central Java, to produce low-cost 360-degree photography and digital brochures using only smartphones. The programme, funded by the Ministry of Higher Education, Science, and Technology, aims to boost rural tourism promotion and creative economy growth. Participants learned to create virtual tours and locally branded smart brochures to attract more visitors.

Tanah Abang subdistrict head optimistic area will remain conducive ahead of planned protest

Tanah Abang Subdistrict Head Utami has expressed confidence that the area will remain secure ahead of a planned protest on 27 August, citing support from 47 community organisations. The groups, united under Rumah Guyub Tanah Abang, are prepared to help maintain order across Tanah Abang, Gambir and Menteng. Officials emphasised that economic activity must continue while ensuring that the right to peaceful assembly is respected.

National Karang Taruna Board Deploys Personnel to Assist Forest and Land Fire Response in Sumatra

The National Board of Karang Taruna (PNKT) has mobilised its members and volunteers to support forest and land fire (Karhutla) response efforts across five priority provinces in Sumatra and Kalimantan. The deployment follows a directive from PNKT Chairman Budisatrio Djiwandono, with personnel assisting in logistics, communication, and community mobilisation rather than direct firefighting. The organisation has also dispatched 16 tents and operational funds to affected regions.

Unsoed OTT: Campus Awaits Official KPK Explanation

Jenderal Soedirman University (Unsoed) is awaiting official clarification from the Corruption Eradication Commission (KPK) following a sting operation that ensnared its rector and several vice-rectors. The university has not yet determined the legal status of those detained or the exact nature of the case. KPK Chairman Setyo Budiyanto confirmed the rector and two vice-rectors were among those apprehended.

Indonesia's Balance of Payments Records US$900 Million Deficit in Q2

Indonesia's balance of payments deficit narrowed sharply to US$0.9 billion in the second quarter of 2026, down from US$9.1 billion in the previous quarter. The improvement was driven by a rebound in the capital and financial account, which swung to a surplus, despite a widening current account deficit. Bank Indonesia maintains that external resilience remains intact, supported by strong foreign exchange reserves.

BRI Unveils New Qlola by BRI Interface, Strengthening Integrated Digital Solutions for Business Ecosystem

Bank Rakyat Indonesia has launched a refreshed interface for its Qlola by BRI digital banking platform, aimed at delivering a more integrated and intuitive experience for business customers. The update is built on three pillars—personalisation, connectivity, and seamless user experience—and follows strong growth in active users and transaction volumes. BRI reported over 99,000 active Qlola users in the first half of 2026, with transaction volume reaching Rp8,799 trillion, up 51% year-on-year.

Vance: US enters 'new phase' of economic pressure on Iran

US Vice President J.D. Vance has declared a 'new phase' in the campaign against Iran, arguing that economic pressure is now the most effective tool available to Washington. His remarks followed the addition of ten individuals to US sanctions lists and a pledge by Treasury Secretary Scott Bessent to impose the toughest sanctions in history. The administration says it will coordinate with allies to achieve what it calls the largest economic isolation effort ever undertaken.

Basarnas continues medical evacuation of seriously injured NTT earthquake victims

Indonesia's National Search and Rescue Agency (Basarnas) has resumed helicopter evacuation of two elderly earthquake victims with severe injuries in East Manggarai Regency, East Nusa Tenggara. The patients, aged 81 and 71, are being flown to Komodo Airport for intensive treatment at Pratama Komodo Regional Hospital in Labuan Bajo. Basarnas personnel remain on standby in the region to distribute aid and provide humanitarian services to affected communities.

Prajogo's TPIA Acquires Automotive Business in Singapore and Malaysia

PT Chandra Asri Pacific Tbk (TPIA), owned by tycoon Prajogo Pangestu, has signed a conditional agreement to acquire the Cycle & Carriage automotive business in Singapore and Malaysia. The acquisition is part of the group's regional expansion strategy to build an integrated platform in energy, infrastructure, and mobility across Southeast Asia. Mizuho Bank is providing financing support for the transaction.

Ruben Onsu Named Suspect in Alleged Investment Fraud, Victim Losses Reach Rp 3.5 Billion

Celebrity Ruben Onsu has been named a suspect by the South Jakarta Metropolitan Police over an alleged investment fraud and embezzlement case. The victim reportedly suffered losses of Rp 3.5 billion after investing in a business offered by Onsu. Police are continuing their investigation under articles on fraud and embezzlement in the Criminal Code.

House Deputy Commission IX Chair Proposes Extraordinary Event Status if ISPA Cases from Forest Fires Worsen

Yahya Zaini, Deputy Chairman of House Commission IX, has urged the government to declare an extraordinary event (KLB) in Central Kalimantan if acute respiratory infection (ISPA) cases linked to forest and land fires continue to deteriorate. The region has recorded over 66,000 ISPA cases, with more than 1,000 hotspots and nearly 149 hectares burned. He called on the Health Ministry to establish health protocols, ensure medical resources, and protect vulnerable groups.

Massive Fire at Sungai Duri Market in West Kalimantan

A major fire destroyed 48 shophouses at Sungai Duri Market in Bengkayang Regency, West Kalimantan, on Thursday evening. Firefighters were still cooling the site hours later, and the cause of the blaze remains unknown. The fire is believed to have started in a shophouse in the middle of the row of buildings.

Eight defendants in LPEI corruption case face sentencing hearing today

Eight former officials of the Indonesian Export Financing Institution (LPEI) are due to hear prosecutors' sentencing demands at the Jakarta Corruption Court. The case concerns alleged corruption in national export financing between 2015 and 2020, which prosecutors say caused state losses of around Rp992.82 billion. The defendants are accused of unlawfully enriching Handoko Limaho and Liu Raymond through fraudulent financing schemes.

Bio Farma Group Unites Integrated Health Resources to Support Disaster Response in NTT

Bio Farma Group, together with Kimia Farma Group and Indofarma, has mobilised a coordinated health response to the earthquake that struck East Nusa Tenggara on 15 August 2026. The state-owned pharmaceutical holding, part of the Danantara ecosystem, is distributing vaccines, medicines, medical equipment and basic necessities to affected communities. The effort reflects a shift from business performance towards measurable social impact in emergency situations.