Indonesian Political, Business & Finance News

Archive: 26 August 2026

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AI Could Add US$15.7 Trillion to the Global Economy, What Does Indonesia Get?

Coordinating Minister for Economic Affairs Airlangga Hartarto has highlighted artificial intelligence's potential to add US$15.7 trillion to the global economy by 2030, with Indonesia's AI-related revenue growing 127% year-on-year in the first half of 2025. The government is integrating data centres, AI, and semiconductors to support its 8% economic growth target, while also developing digital talent and pursuing regional cooperation through the ASEAN Digital Economy Framework Agreement.

Pemuda PUI Highlights Transparency in Law Enforcement in Febrie Adriansyah Case

The youth wing of the Islamic Union Party (Pemuda PUI) has called for transparency and adherence to legal procedure in the handling of the case involving former Deputy Attorney General for Special Crimes, Febrie Adriansyah. They emphasised that the pretrial mechanism is a legitimate part of Indonesia's legal system and should be viewed as a control instrument rather than an obstruction. The organisation urged the public to respect judicial independence ahead of the pretrial ruling scheduled for Thursday.

Reviewing NTT Earthquake Victim Handling, Prabowo: Those Who Work Hard and Sacrifice Must Be Rewarded

President Prabowo Subianto has instructed regional leaders in Nusa Tenggara Timur to identify and reward personnel who worked hard and made sacrifices in responding to the recent earthquake. He emphasised that appreciation should go beyond verbal thanks and take tangible forms. The remarks were made during a coordination meeting in Nagekeo Regency following the magnitude 7.7 earthquake that killed at least 103 people.

Sjafrie Confident Indonesia-Australia Partnership Will Create Regional Peace

Indonesian Defence Minister Sjafrie Sjamsoeddin expressed optimism that the growing defence partnership between Indonesia and Australia will contribute to regional peace and stability. Speaking during the 2+2 meeting in Melbourne, he highlighted the importance of the Jakarta Agreement signed in February 2026. Foreign Minister Sugiono echoed this sentiment, emphasising the strategic and enduring nature of the bilateral relationship.

Witness Admits Acting as Intermediary for Rp 1.8 Billion Entrusted to Customs Official

A former operational staff member of PT Mega Persada Globalindo testified that he acted as an intermediary for Rp 1.8 billion in payments from PT Infiniti Internasional Logistik to a customs official. The witness detailed five separate handovers between October 2025 and January 2026, involving cash in Singapore dollars and rupiah. The testimony was given at the Jakarta Corruption Court in the trial of Orlando Hamonangan, a customs intelligence section head accused of accepting bribes related to goods importation.

193 Kramat Jati fish traders to be relocated to Lokbin starting this week

The East Jakarta administration is relocating 193 fish traders from Jalan Raya Bogor in Kramat Jati to a designated location (Lokbin) as part of a broader effort to tidy up the area and enforce local regulations on public space use. The move follows complaints about traders occupying road shoulders and pavements, with all affected traders reportedly agreeing to the relocation. The city has prepared spaces within the Lokbin complex and will continue coordinating with trader representatives to ensure a smooth transition.

Satisfied with Himbara Performance, Danantara COO Praises Boards of Directors

Donny Oskaria, COO of Danantara and Head of the State-Owned Enterprise Regulatory Body, has expressed pride in the transformation of Indonesia's state-owned banks, citing strong profits and improved performance. He highlighted BRI's significant reduction in cost of funds and praised the leadership teams at Bank Mandiri and BNI. Oskaria said the changes are designed to ensure state-owned banks grow well while keeping risks under control.

Danantara: 100 GW solar power development requires Rp1,130 trillion investment

Indonesia's Investment Management Agency Danantara estimates that developing 100 gigawatts of solar power capacity will require approximately Rp1,130 trillion in investment. The agency highlights the need for a robust financing ecosystem to support renewable energy and green economy development. Danantara aims to act as an equity investor and 'engine of energy transition' through instruments such as Patriot Bonds and blended financing schemes.

Skilled and Adaptive Workforce Development Seen as Key to Realising Golden Indonesia 2045

As Indonesia pursues its Golden Indonesia 2045 vision, developing a skilled and adaptive workforce is considered essential for long-term economic growth. RMIT University Australia is advocating for a more integrated tertiary education system that places vocational training on equal footing with academic pathways. The push comes amid data showing vocational school graduates face an 8.63 percent open unemployment rate in 2025.

JCI Plunges as Investors Weigh Indonesia's Security Stability Risks

The Jakarta Composite Index fell by 1.48 per cent to 6,405.69 as investors remained cautious about domestic security stability ahead of planned demonstrations. Market attention also focused on Fitch Ratings' assessment of the 2027 state budget, the fit and proper test for the Bank Indonesia governor candidate, and developments in Asian markets.

Indonesian Police bust illegal gold smuggling network to Hong Kong

Indonesian police have arrested a suspect and uncovered a North Jakarta house allegedly used to refine and smuggle illegal gold to Hong Kong by concealing gold patches on people's bodies. The operation targeted a network linked to a Chinese national, GCZ, who is believed to have fled abroad. Authorities seized refining equipment, cash and documents, and will coordinate with the PPATK to trace financial transactions and assets connected to the illegal activity.

Police bust illegal gold smuggling network to Hong Kong

Indonesian police have arrested a suspect and uncovered an illegal gold smuggling operation in North Jakarta, allegedly run by a Chinese national who refined gold and smuggled it to Hong Kong by attaching patches to couriers' bodies. Investigators seized processing equipment, cash and transaction documents, and will coordinate with the PPATK financial intelligence unit to trace the network's finances and assets. The main suspect is believed to have fled abroad, and police are expanding their probe to identify other members of the network.

AAL1 Fire Brigade Strengthens Synergy to Prevent Forest and Land Fires in Tabalong

The Tabalong Regency Government in South Kalimantan is stepping up preparedness against forest and land fires as the dry season continues. PT Astra Agro Lestari (AAL)1 has deployed its fire brigade to join the 2026 disaster preparedness alert, reflecting a coordinated effort between local authorities, businesses, security forces, and the community. The initiative focuses on early detection, rapid response, and prevention through patrols and inter-agency communication.

Indosat & Arsari Group launch AI-based digital toll road company

PT Infra Fiber Teknologi, a joint venture between Arsari Group and Indosat Ooredoo Hutchison, has launched RAIA Grid, an AI-powered digital infrastructure platform. The initiative aims to strengthen Indonesia's digital ecosystem by integrating over 86,000 kilometres of fibre infrastructure with machine learning and agentic AI. The project is positioned as a strategic move towards developing domestic AI capabilities and potentially supercomputer manufacturing in Indonesia.

Bekasi Launches Waste-to-Energy Project, Electricity Priced at US$0.20 per kWh

Indonesia's sovereign wealth fund BPI Danantara has commenced construction of a waste-to-energy facility in Bekasi, West Java, capable of processing 500,000 tonnes of waste annually and generating 36 MW of electricity. PLN has signed a power purchase agreement to buy the output at US$0.20 per kWh, with 27 MW dedicated to supplying Bekasi residents. The project is expected to reduce carbon emissions by 640,000 tonnes of CO2 equivalent per year and begin operations in mid-2028.

Indonesia turns to borewells as drought hampers firefighting

Indonesia is deploying deep borewells in peatland areas of Sumatra and Kalimantan as prolonged drought renders weather modification ineffective and surface water evaporates. The Ministry of Forestry, military and police are collaborating to drill wells that access underground water reserves to fight forest and land fires ahead of the September peak. Officials warn that dry conditions could persist for up to 60 days without rain.

NTB Provincial Government pushes for expansion of social security coverage for workers

The West Nusa Tenggara provincial government is urging districts and cities to expand employment social security coverage despite fiscal constraints. Deputy Governor Indah Dhamayanti Putri highlighted the importance of protecting vulnerable workers, particularly women heads of households, and called on regional leaders to allocate budgets appropriately. She also praised BPJS Ketenagakerjaan as a strategic partner in social protection programmes.

IBS 2026 brings together government and battery technology players

The International Battery Summit 2026 in Jakarta has highlighted Indonesia's strategic opportunity to expand its battery industry beyond raw materials and electric vehicles into battery energy storage systems. Speakers stressed that building a competitive ecosystem requires stronger connections between research, technology, investment, manufacturing, and markets. The event positions battery development as central to both transport electrification and the country's renewable energy transformation.

Video: Prabowo Launches Molinas, Electric Motorcycle Industry Confident of Growth

President Prabowo Subianto has officially launched the National Electric Motorcycle Programme (MOLINAS) alongside its supporting ecosystem, as part of a government strategy to reduce fuel import dependency, lower vehicle costs for the public, and strengthen Indonesia's industrial self-reliance. The initiative is backed by Aismoli chairman Budi Setiyadi, who views it as a key driver for accelerating the energy transition, curbing air pollution, and reducing government energy subsidies.

Astra Agro Group in South Kalimantan Helps Tackle Forest and Land Fires in Ring One of Syamsudin Noor Airport

PT Astra Agro Lestari's South Kalimantan area has deployed fire brigade personnel and equipment to combat forest and land fires near Syamsudin Noor International Airport in Banjarbaru. The operation is coordinated through an integrated post with the provincial plantation and livestock agency, focusing on protecting the strategically vital airport buffer zone. The government aims to complete all disaster handling processes within the next two weeks.

BNPB: 4.6 million litres of water used in water bombing to tackle forest and land fires

Indonesia's disaster management agency BNPB has deployed 4.6 million litres of water in aerial firefighting operations across six priority provinces, but peatland characteristics and shrinking water sources continue to hamper efforts. Ground operations remain the primary method, with weather modification helping to trigger rain in some West Kalimantan districts. The public has been urged to remain vigilant and avoid activities that could spark new fires.

PKS: 'Acceleration' Discourse Before 2029 Is a Form of Political Provocation

The Prosperous Justice Party (PKS) has condemned remarks by Projo chairman Budi Arie Setiadi about a possible 'acceleration' before the 2029 election, calling them a dangerous political provocation. PKS spokesperson Pipin Sopian stressed that presidential term limits are constitutionally fixed and must be respected. He also noted that the statement was made in a video showing former president Joko Widodo beside Budi Arie, raising public questions.

Social Media Grows More Complex, Brands Strengthen Social-First Strategies

As social media becomes increasingly complex, brands are shifting towards social-first strategies that prioritise platform-specific behaviour and audience engagement from the outset. Creative agency Lengua has joined the Feel Good Network to strengthen this approach, bringing expertise in social media strategy, content production, and creator engagement. The move reflects a broader industry trend where understanding audience behaviour and digital culture is becoming more critical than sheer reach.

Bekasi Mayor Targets Bantargebang PSEL as Environmental Innovation Zone

Bekasi has commenced construction of a waste-to-energy facility in Bantargebang with a daily processing capacity of 1,500 tonnes. Mayor Tri Adhianto Tjahyono envisions the project transforming the area from a landfill into a hub for green industry and environmental innovation. He stressed that community involvement in waste sorting remains essential, as roughly 300 tonnes of daily waste will still exceed the plant's capacity.

Tangerang City Government Forms Cross-Sector Team to Identify Out-of-School Children

The Tangerang City Government has established a cross-sector team involving multiple regional agencies to inventory and address the issue of out-of-school children (ATS). The initiative aims to ensure every child has access to proper education through coordinated data collection, home visits, and targeted interventions. The programme also focuses on improving school quality and creating safe, child-friendly learning environments.

Sade Village Not Yet Registered as Cultural Site, Rp58 Billion Contingency Budget Could Provide Aid

The NTB Regional House of Representatives (DPRD) has highlighted that the traditional Sasak village of Sade in Central Lombok remains unregistered in the national cultural heritage database due to a lack of certified experts at the district level. Lawmakers are also scrutinising a proposed increase in the province's contingency budget to Rp58 billion, which could be used to support emergency transition assistance for fire-affected residents.

Southwest Papua Governor invites Environment Minister to Papeda Summit 2026

Southwest Papua Governor Elisa Kambu has invited Environment Minister Jumhur Hidayat to attend the Papeda Summit 2026 in Sorong. The governor stressed that environmental protection must go hand in hand with improving community welfare. The summit aims to strengthen collaboration between government, civil society and other stakeholders on sustainable development in Papua.

17-Year-Old Exploits NTT Earthquake Chaos to Burgle Homes and Steal Gold

A 17-year-old has been arrested in Labuan Bajo, East Nusa Tenggara, for allegedly burgling homes left vacant by residents fleeing earthquake aftershocks. Police say the suspect used a screwdriver to force open doors and windows, stealing electronics, gold jewellery, rice, and cash. The arrest follows multiple reported thefts in the Sernaru area, including from a noodle stall.

Changan Expands in East Java with Debut of Deepal S05 and Nevo Q05 at GIIAS Surabaya

Changan made its debut at GIIAS Surabaya 2026, introducing the Deepal S05 and Nevo Q05 electrified SUVs to the East Java market. The launch is part of the brand's strategy to widen access to electrified vehicles across Indonesia's regions. Both models are offered with competitive pricing and extensive warranty packages.

BNPB strengthens weather modification operations to utilise rain opportunities in tackling West Kalimantan forest and land fires

Indonesia's National Disaster Mitigation Agency (BNPB) is intensifying cloud seeding operations to take advantage of potential rain clouds in combating forest and land fires in West Kalimantan. The agency has conducted multiple cloud seeding sorties and deployed water bombing helicopters along with thousands of ground personnel. The fires have burned over 38,000 hectares since the start of the year, with several areas reporting unhealthy air quality levels.

Bali Tourism Village Forum prepares disaster-resilient villages following Sade fire

The Bali Tourism Village Communication Forum (Forkom Dewi) is developing a disaster-resilient tourism village model in response to the recent fire that destroyed Desa Wisata Sade in Lombok. The initiative aims to establish mitigation standards and operational procedures for Bali's 245 tourism villages, many of which share similar characteristics with Sade, including traditional housing and reliance on natural and cultural assets. The forum is seeking collaboration with Bali's Regional Disaster Management Agency (BPBD) to implement safety governance, CHSE standards, and visitor behaviour rules.

Polda Metro Jaya Estimates Up to 500 People to Join Tomorrow's Demonstration

Polda Metro Jaya estimates that around 500 people will participate in a demonstration outside the DPR/MPR building in Senayan, Jakarta, on 27 August, based on official notifications from community alliances. The police have confirmed that no demonstrators have been arrested or found carrying dangerous weapons and have urged participants to comply with the law. Thousands of joint personnel will be deployed to secure the event and manage traffic and public transport.

DKI assures Population Control Bylaw does not restrict right to reside

The Jakarta provincial government has assured that the draft regional regulation on population control will not limit anyone's right to reside, but rather aims to create orderly, inclusive, and sustainable population mobility governance. Deputy Governor Rano Karno stated that the policy is needed to balance population dynamics with the region's carrying capacity and to align development with Jakarta's character as a global city. The bylaw will also address population quantity and quality, including family planning programmes and improved health services.

Pelindo ensures smooth fuel vessel berthing at Pulau Baai Port

PT Pelindo Regional 2 Bengkulu has confirmed that fuel-carrying vessels are now berthing smoothly at Pulau Baai Port following the completion of dredging works that restored the shipping channel to a depth of 6.5 metres LWS. Two tankers carrying thousands of tonnes of Pertalite and other fuels docked successfully in late August, underscoring the port's improved reliability. The company says it remains committed to maintaining the channel and supporting fuel distribution across Bengkulu Province.

Bekasi City Waste-to-Energy Plant Targeted to Operate by Mid-2028

Construction of the Bekasi City Waste-to-Energy Plant (PSEL) has officially commenced, with operations targeted for mid-2028. The facility will process up to 1,500 tonnes of waste daily into electricity for PLN's grid. The project is expected to create nearly 1,000 green jobs and incorporates incineration and pyrolysis technologies.

World Changes, High-Paying Professions Now Become Unemployment Fields

The global labour market is being reshaped by artificial intelligence, with once-elite, high-paying professions now facing widespread redundancies. Sectors such as technology, financial services, and business consulting are undergoing permanent restructuring, with AI replacing white-collar roles that were previously considered secure. This has led to rising unemployment among senior professionals and significant lifestyle shocks for those accustomed to high incomes.

Revealed: Trump Defied Intelligence Warnings to Wage War on Iran

US President Donald Trump reportedly pressed ahead with strikes on Iran in February despite warnings from senior officials, including National Intelligence Director Tulsi Gabbard, about the risk of a global energy crisis and a more hardline successor in Tehran. The Wall Street Journal reports that Trump dismissed concerns and later sought a ceasefire amid rising fuel prices and strong domestic support for ending the war. Negotiations ultimately collapsed, and Washington has since revived an economic pressure campaign against Iran.

NU Congress Final Voter List Set, 557 Eligible Voters Meet Requirements

The organising committee of the 35th Nahdlatul Ulama (NU) Congress has finalised the permanent voter list, confirming 557 eligible voters out of 590 registered participants. The figure meets the quorum requirement for the congress to proceed. Approximately three per cent of representatives were excluded due to administrative issues, including deceased officials and outdated leadership data.

Puan Assures DPR Ready to Receive Public Aspirations, Urges Orderly Protests

House of Representatives (DPR) Speaker Puan Maharani has affirmed that parliament is prepared to receive public aspirations ahead of planned demonstrations on 27 August 2026. She called on protesters to maintain order during the rallies and indicated that DPR leaders are open to meeting demonstrators. At least four groups are expected to stage protests outside the parliament building in Senayan, Jakarta.

Iran Threatens to Halt Oil Exports from the Gulf Amid Fresh US Sanctions

Iran has threatened to block oil exports through the Gulf if regional states join the latest US economic sanctions against Tehran. Secretary of Iran's Supreme National Security Council Mohsen Rezaei warned that any country supporting Washington's measures would be treated as an enemy. The threat raises the prospect of further disruption to the strategically vital Strait of Hormuz.

High Rent and Quiet Stalls Drive Hundreds of Depok Street Vendors Back to the Roadside

Hundreds of street vendors in Depok's Cisalak Market area have returned to pavements and road shoulders after refusing to occupy relocation kiosks inside the market building. Vendors argue that the new location is quiet, while rent and service charges are too burdensome for small-scale traders. The Depok city government maintains that hundreds of empty kiosks and stalls are available and adequate to accommodate them.

Construction of Bantar Gebang Waste-to-Energy Facility Begins: A Project Profile

Danantara Indonesia has commenced construction of the Bekasi City Waste-to-Energy (PSEL) facility in Bantar Gebang, marking the second such project after Denpasar Raya. The project, mandated under Presidential Regulation No. 109 of 2025, will process up to 1,500 tonnes of waste per day and is expected to create nearly 1,000 green jobs. A power purchase agreement with PLN has been signed, with operations targeted for mid-2028.

Boni Hargens Confident TNI-Polri Have Effective Strategy to Maintain Security Tomorrow

Political and intelligence analyst Boni Hargens has expressed confidence that the Indonesian National Police (Polri), the military (TNI) and the State Intelligence Agency (BIN) have a mature collaborative strategy to maintain public order amid rumours of a planned protest on 27 August 2026. He urged proportional responses from all parties and cautioned against complacency, invoking the Black Swan Theory to highlight the possibility of unpredictable events. Hargens also called on the public, media and policymakers to avoid unfounded panic while remaining vigilant.

Why is NU Returning to the Pesantren?

The 35th Nahdlatul Ulama Congress in 2026 will be held at Bahrul Ulum Islamic boarding school in Jombang, a site deeply tied to NU co-founder KH Abdul Wahab Chasbullah. The location choice is framed as an act of cultural memory and political-cultural meaning, reconnecting the organisation to its roots. The article argues that returning to the pesantren helps NU reclaim its foundational legitimacy as it enters its second century.

Minister calls for treating haze from land fires as common enemy

Religious Affairs Minister Nasaruddin Umar has urged Indonesians to treat haze from forest and land fires as a shared enemy due to its health and environmental impacts. Speaking at the national Maulid Nabi commemoration, he linked fire prevention to Islamic teachings on environmental stewardship. The ministry also launched national religious initiatives aimed at strengthening communal values and environmental awareness.

Bahlil Issues Geothermal Utilisation Permit for Mount Ungaran, Exploration Area Covers 29,800 Hectares

Energy and Mineral Resources Minister Bahlil Lahadalia has issued a geothermal utilisation permit for the Mount Ungaran working area in Central Java, covering 29,800 hectares across Semarang and Kendal regencies. The permit has been delegated to state electricity company PT PLN, which must still secure spatial planning, forest area use, and environmental approvals before exploration can begin. The environmental permit phase is expected to involve extensive stakeholder consultation.

Before Prabowo, Nagekeo Regent Claims Free Nutritious Meals Programme Improves Child Health and Reduces Domestic Violence

Nagekeo Regent Simplisius Donatus has urged President Prabowo Subianto to continue the Free Nutritious Meals (MBG) programme, claiming it has boosted school attendance and reduced domestic violence in the regency. Speaking during Prabowo's visit to earthquake-affected areas in Flores, he also highlighted the programme's role in supporting disaster relief efforts. The regent further requested the restoration of central government transfers that had been cut by IDR 148 billion.

Police Ready to Secure Public Aspiration Rallies, Urge Peace and Order

The Indonesian National Police has pledged to provide security for planned public demonstrations while calling on participants to remain peaceful and orderly. The force emphasised that freedom of expression is guaranteed by law but must be exercised responsibly and without disrupting public order.

PT WIKA Gedung new contract value grows 568 percent as of August 2026

PT Wijaya Karya Bangunan Gedung Tbk (WEGE) reported a 568 percent year-on-year increase in new contract value, reaching Rp775 billion as of August 2026. The company's contract portfolio is dominated by government projects, with public facilities accounting for 63 percent of project typology. WEGE also highlighted its low debt-to-equity ratio of 0.98 times and plans to divest over Rp1 trillion in assets to strengthen liquidity and focus on its core construction business.

PMI and Danone Indonesia Distribute Rp 1 Billion in Donations to NTT Earthquake Victims

The Indonesian Red Cross (PMI) and Danone Indonesia have provided humanitarian assistance to communities affected by the earthquake in East Nusa Tenggara (NTT). The aid package includes Rp 1 billion in cash, approximately 53,000 bottles of AQUA water, and nutritional products. PMI Chairman Jusuf Kalla highlighted that this marks Danone Indonesia's sixth donation to disaster relief efforts, underscoring the company's commitment to ESG principles.