Indonesian Political, Business & Finance News

Archive: 26 August 2026

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Rp60,000 Parking Tariff Deemed Worth Testing in Congested Areas

Indonesian Transport Society advisor Djoko Setijowarno has backed a proposed parking tariff of up to Rp60,000 per hour in Jakarta, arguing current rates are too cheap and fail to discourage private car use. He said the policy should be introduced gradually in high-density areas and paired with improved public transport and feeder services from satellite cities. Djoko urged the government to focus on reducing congestion rather than being distracted by debate over the specific figure.

Jakarta Transport Agency: Rp60,000 Parking Tariff Still a Proposal, Not Yet Decided

The Jakarta Transportation Agency has clarified that no parking tariff increase is currently in effect, dismissing circulating figures of Rp60,000 per hour as unapproved proposals from 2019 and 2022 studies. Current rates remain unchanged under existing regulations, with the agency focusing on digitalisation and enforcement against illegal parking.

Dedi Mulyadi Denies Joining PSI: Not Just Untrue, but a Hoax

West Java Governor Dedi Mulyadi has firmly denied rumours that he plans to join the Indonesian Solidarity Party (PSI), calling the reports a hoax. He confirmed he remains Deputy Chairman of the Gerindra Party's Board of Patrons and has no intention of switching parties. A fellow Gerindra official also said he saw no signs of Mulyadi leaving the party.

House Commission VII: Industrial Estate Bill aims to better organise industrialisation

Indonesia's House of Representatives Commission VII is drafting an Industrial Estate Bill intended to improve the organisation of industrialisation across the country. Lawmakers argue that industrial estates play a major role in absorbing labour and boosting regional economies, with around 180 estates currently operating nationwide. The bill is expected to provide legal certainty for investors while ensuring benefits such as local employment and corporate social responsibility for surrounding communities.

ESDM Sends 48 Silent Generators to Health Centres Affected by NTT Earthquake

The Ministry of Energy and Mineral Resources (ESDM) is dispatching 48 silent generators to Nusa Tenggara Timur to support health services operating in emergency tents following the recent earthquake. The generators will be distributed across seven affected regencies to ensure reliable electricity for medical equipment. Minister Bahlil Lahadalia said the silent type was chosen to avoid disturbing patients receiving treatment outdoors.

Nusantara Battery drives self-reliance in ASEAN battery ecosystem

Indonesia and Malaysia are collaborating to develop a regional battery ecosystem through the Nusantara Battery initiative. The partnership combines Indonesia's cathode material development with Malaysia's pilot cell production facilities. The effort aims to build an independent ASEAN battery supply chain and reduce regional dependence on external technology.

Despite Ban, Landmines Again Become a Threat of War

The use of anti-personnel landmines is rising again as several NATO countries bordering Russia, including Poland, Finland and the Baltic states, withdraw from the Ottawa Treaty. Ukraine has also left the treaty, citing Russia's unrestricted use of mines, while experts warn that modern 'smart' mines will make post-conflict clearance even harder. The trend reflects a broader weakening of global arms control.

KP2MI ready to boost migrant worker competence through SMK Go Global

The Ministry for the Protection of Indonesian Migrant Workers (KP2MI) has launched the SMK Go Global programme to equip prospective migrant workers with globally recognised skills and certifications. The initiative targets 500,000 workers, including 300,000 vocational school graduates, for placement in countries such as Japan, South Korea, Germany and Australia. Training will be tailored to actual labour market demand across sectors including caregiving, welding, hospitality, nursing and manufacturing.

Purbaya Urges Swift Completion of Air Cargo Standardisation to Cut Logistics Costs

Finance Minister Purbaya Yudhi Sadewa has called for the immediate finalisation of rules standardising air cargo cost components and synchronising business processes to reduce Indonesia's relatively high logistics costs. The move responds to complaints from logistics association Asperindo about duplicate security and airport charges, as well as inconsistent volumetric weight calculations among airlines. The minister stressed the importance of the reform for inter-island goods transport, which is vital for the archipelagic nation.

Babysitter in Buleleng Hallucinates Seeing Dark Figure, Chases Police Patrol

A 31-year-old babysitter in Buleleng, Bali, experienced a severe mental health episode after reporting hallucinations of a tall dark figure. The woman, identified as MM, became uncontrollable and chased passing vehicles, including a police patrol car, before being secured by a joint team. She has been referred to Buleleng Regional Hospital for medical treatment, with the Social Affairs Agency providing support for her recovery and return to her family in East Nusa Tenggara.

Sembur Island Solar Power Plant Ready to Support 100 GWp Solar Programme

President Prabowo Subianto has inaugurated a 100 GWp national solar power programme, including a 1 MWp solar plant on Sembur Island in Batam developed by Pertamina NRE. The project, equipped with battery storage and productive-use facilities such as cold storage and ice makers, aims to provide 24-hour electricity to around 200 households. It is projected to save up to 320,000 litres of fuel per year and support the government's energy transition agenda.

Senior Deputy Governor Candidate Aida Reveals Heavy Rupiah Challenges in 2026

Aida S. Budiman, the sole candidate for Senior Deputy Governor of Bank Indonesia, has warned that the rupiah faces significant challenges in 2026 due to high global uncertainty. She emphasised that the central bank will focus on maintaining exchange rate stability rather than targeting a specific level. Aida also noted that a manageable current account deficit of around 3.3% of GDP could help support the currency.

Special Business Entity to Replace SKK Migas, Says MPR Deputy Speaker

The Indonesian government and parliament are preparing a new special business entity to take over the functions of upstream oil and gas regulator SKK Migas, following a Constitutional Court mandate. Deputy Speaker of the People's Consultative Assembly Eddy Soeparno said the transition would be seamless and that the new entity must be strong, credible, and capable of attracting greater investment. The move is part of broader efforts to boost oil and gas production and reduce dependence on imports.

Batam Weather Forecast Today, BMKG: Potential for Rain

The Meteorology, Climatology and Geophysics Agency (BMKG) has forecast rain for Batam and surrounding areas of the Riau Islands today, particularly from morning to midday. A wind shearline is supporting the localised growth of rain clouds, with light to moderate intensity expected. Sea conditions remain relatively calm with wave heights of 0.7–0.8 metres, though brief gusts may occur.

Hippindo stresses importance of modern retail adapting to technology

The Indonesian Shopping Centre Tenants Association (Hippindo) has urged modern retailers to embrace technological trends that are reshaping consumer behaviour. Speaking at the Indonesia Retail Summit and Expo 2026, the association also called for government support to maintain economic stability. The event aims to strengthen Indonesia's trade ecosystem through collaboration among stakeholders.

BPJPH urges regions to accelerate halal certification to boost income

The Halal Product Assurance Agency (BPJPH) is calling on regional governments to speed up halal certification, citing the sector's 27 percent contribution to Indonesia's GDP. With mandatory halal certification for food, beverages, medicines, cosmetics and textiles set to take effect in October 2026, BPJPH is collaborating with North Sumatra authorities and Bank Indonesia to expand the halal ecosystem.

West Lombok Regional Library Short of 900,000 Books, Residents Can Donate

The West Lombok Regional Library is facing a significant shortfall of around 900,000 books, with only 100,000 copies available against an ideal target of one million. The local archives and library agency plans to propose additional funding and may open a public book donation scheme if the budget is not realised. The agency also aims to revive village libraries to boost reading interest and reduce school dropout rates.

BGN coordinates MBG distribution as schools close due to forest and land fires

The National Nutrition Agency (BGN) is coordinating with disaster task forces and regional governments to manage the distribution of the Free Nutritious Meals (MBG) programme after schools were closed due to forest and land fires. The agency has issued a standard operating procedure to ensure orderly distribution and prevent disruption to emergency response efforts. Meals already prepared before sudden school closures will be collected by parents, while distribution will be suspended during remote learning periods.

Bank Mandiri Denies Mass Withdrawals by Customers Amid Botok Account Controversy

Bank Mandiri's president director has dismissed reports of mass withdrawals by customers following the blocking of an account belonging to Supriyono, also known as Botok. Riduan assured that customer conditions remain normal and that the bank's share price has not been affected. He also confirmed the bank will promptly reactivate Botok's account in line with instructions from the police and House of Representatives Commission III.

Man Held at Gunpoint by Armed Robbers in East Jakarta, Motorcycle Stolen

A 22-year-old man was robbed of his motorcycle at gunpoint in Cakung, East Jakarta, in the early hours of Wednesday morning. Police arrested three suspects hours later at a rented house in North Jakarta. The incident highlights ongoing concerns about street crime in the capital.

World on Alert! New War Could Emerge, Russia vs UK

Russia has withdrawn its ambassador from the United Kingdom, citing unprecedented low relations and accusing London of choosing confrontation. The move comes as new UK Prime Minister Andy Burnham deepens support for Ukraine, including plans to share classified information for domestic Storm Shadow missile production. Moscow has warned it will destroy any such production sites, raising fears of further escalation.

New MBG Rule: Kitchen Heads Required On Site From 2 AM, No Kitchen Leader Means No Cooking

The Indonesian government is tightening oversight of the Free Nutritious Meals programme by requiring heads of Nutrition Fulfilment Service Units to be physically present at kitchens from 2 AM to 8 AM. The rule, announced by Coordinating Minister for Food Zulkifli Hasan, aims to ensure food is cooked to standard and not prepared too far in advance. Attendance will be monitored by the National Nutrition Agency through online check-ins and Zoom.

East Jakarta City Government distributes fire aid in Duren Sawit and Cipinang Muara

The East Jakarta City Government, through its Social Services Sub-department and the Indonesian Red Cross, has distributed emergency aid to residents affected by two separate fires in Duren Sawit and Cipinang Muara. Assistance includes bedding, food supplies, ready-to-eat meals, clean water, and sanitation facilities. Local agencies have also provided tents, lighting, and mobile toilets to support displaced residents.

IHSG Plunges 1.48% Today, Abandoning the 6,500 Level!

The Jakarta Composite Index (IHSG) fell sharply by 1.48% to close at 6,405.69 on Wednesday, dropping below the 6,500 level. Heavy selling pressure saw 599 stocks decline, with the utilities, industrial, and property sectors leading the losses. Large-cap stocks such as Bank Rakyat Indonesia, Amman Mineral Internasional, and Bank Central Asia were the main drags on the index.

Witness Says He Was Called 'Stingy' After Offering Rp 50 Million to Customs Official

A logistics company owner testified that a customs official demanded monthly operational payments, initially rejecting his Rp 50 million offer as 'stingy' before settling on Rp 250 million per month. The witness said he made three payments totalling Rp 750 million to the official's subordinate. The testimony was given in the corruption trial of three senior customs officials accused of accepting bribes and gratuities worth Rp 78.8 billion.

Komdigi and Indosat develop young Papuan digital talent through GSIH

The Ministry of Communication and Digital Affairs (Komdigi) and Indosat Ooredoo Hutchison have launched the Garuda Spark Innovation Hub in Jayapura, Papua, to nurture local digital talent. The facility aims to connect young Papuans with training, industry, academia, and national technology ecosystems. It is integrated with the Indosat AI Experience Center Jayapura, which has been operating since 20 May 2025.

PBNU Reviews Final Preparations Ahead of 35th Congress Opening in Jombang

The Nahdlatul Ulama Executive Board (PBNU) has conducted final inspections of the 35th NU Congress venue in Jombang, East Java, focusing on digital registration systems and strict microphone discipline to ensure an orderly event. Chairman KH Yahya Cholil Staquf and Secretary General Saifullah Yusuf emphasised that the barcode-based registration would prevent unauthorised participants and streamline verification. The congress, held at Pondok Pesantren Bahrul Ulum Tambakberas, marks the beginning of NU's second century and is expected to produce strategic decisions for the organisation's future.

Ministry of Defence strengthens regional veteran data administration

The Ministry of Defence's Veteran Centre is improving administrative management and data verification for veterans in the regions to ensure their entitlements are delivered accurately and in accordance with regulations. The initiative follows the liquidation of Babinminvetcaddam and the transfer of veteran administration functions to territorial units. A workshop in Palu brought together personnel from Central and West Sulawesi to enhance data collection and verification mechanisms.

BGN suspends 463 SPPG for 10 days for data verification

The National Nutrition Agency (BGN) has temporarily suspended 463 Free Nutritious Meal service units (SPPG) for 10 days to complete and verify their data. The move is part of a broader effort to improve the governance of the Free Nutritious Meal (MBG) programme, with BGN cross-checking the operational status of all 27,485 recorded kitchens. BGN Head Sudaryono stressed that the suspension is a verification measure and does not necessarily mean the affected units are not operating.

BKN: All South Sulawesi regional governments develop civil service talent management

The National Civil Service Agency (BKN) has confirmed that all 25 regional government institutions in South Sulawesi have implemented talent management exposés for civil servants. South Sulawesi is the first province outside Java to achieve full participation across all its regencies and cities. The initiative aims to identify, develop, and place civil servants based on potential and competence to build a more responsive bureaucracy.

Video: Danantara Reveals Direction of Asset Management Restructuring at Danareksa

BPI Danantara's Chief Operating Officer Dony Oskaria outlined the consolidation of state-owned enterprise asset management, including the transformation of Danareksa into Danareksa Investment and the restructuring of Bank Himbara. The initiative aims to create a solid asset management ecosystem linked to banking distribution channels, with reforms at BRI, BNI, and Bank Mandiri to strengthen business growth and reduce funding costs.

GSIH 2026 Launched, Makassar Takes Part in Global Digital Ecosystem

Makassar has been selected as one of ten hub cities for the Garuda Spark Innovation Hub (GSIH) Global Hub 2026, launched by Indonesia's Ministry of Communication and Digital Affairs. Mayor Munafri Arifuddin welcomed the initiative, highlighting its alignment with the Makassar Creative Hub and its potential to boost digital talent, innovation, and technology-based MSMEs. The programme aims to connect cities across Indonesia with a wider innovation network and foster shared responsibility in developing the national digital economy.

Prabowo Meets NTT Earthquake Victims, Offers Condolences to Those Who Lost Family

President Prabowo Subianto visited earthquake victims in Nagekeo, East Nusa Tenggara, following the M 7.7 tremor, expressing condolences to those who lost family members. He assured residents that the central government is prioritising aid and monitoring the situation closely. Temporary schools will be set up in tents, with permanent housing repairs expected to begin after a three-week safety period.

100 GWp Solar Power Programme Launched, PLN Ready to Support Acceleration of Renewable Energy Development

President Prabowo Subianto has launched Indonesia's 100 gigawatt peak solar power programme, beginning with 14 projects totalling 5,300 megawatt peak across the country. The initiative is projected to attract US$71.3 billion in investment, create 5.5 million jobs, and reduce emissions by 140 million tonnes of CO2 annually. State utility PLN has pledged full support for the programme, including developing five solar clusters in Bali with 1,000 MWp capacity backed by battery storage.

DPR urges decile data fix to protect public education rights

House of Representatives Commission X deputy chair MY Esti Wijayati has called on the government to immediately correct decile data after anomalies were found that could threaten citizens' right to education. She highlighted the case of a becak driver classified in the same decile as a DPR member, and a student who lost access to tuition relief and KIP Kuliah due to inaccurate data. Esti stressed that administrative errors must not cause students to lose their educational rights.

With Trump's Approval, King Salman One Step Closer to Securing Nuclear Site

President Donald Trump has formally submitted a proposed civil nuclear energy agreement with Saudi Arabia to Congress, triggering a mandatory review period that could grant the kingdom access to advanced US nuclear technology. The 30-year deal, contingent on Saudi Arabia joining the Abraham Accords, would allow American firms to export civil nuclear technology and require the construction of AP1000 reactors. Critics warn the agreement lacks permanent prohibitions on uranium enrichment and could weaken non-proliferation standards in an already volatile region.

Commemorating the Prophet's Birthday, Ummat Party Holds Discussion on Constitutional Court Ruling Abolishing Presidential Threshold

The Ummat Party held a monthly discussion to commemorate the Prophet Muhammad's birthday, focusing on the Constitutional Court's ruling regarding presidential candidacy and prophetic leadership values. The event featured several Islamic scholars and aimed to enrich participants' perspectives on constitutional issues ahead of the 2029 presidential election. Party officials emphasised that the Prophet's birthday should serve as an opportunity to reflect on leadership values in national life.

Polda Metro Jaya Unblocks Bank Account of Supriyono 'Botok'

Polda Metro Jaya has lifted the temporary block on the bank account of Supriyono, also known as Botok, a coordinator of the Pati United Community Alliance. The police clarified that the block was a precautionary measure to verify donation activities and protect the personal data of donors. The account, containing around Rp80.9 million in personal funds and public donations, is now fully accessible again.

Bank Mandiri to Restore Account of Pati Resident Botok

Bank Mandiri will reactivate the account of Supriyono, also known as Botok, after Jakarta Metropolitan Police clarified the fundraising activities linked to it. The account had been temporarily suspended pending verification of donations received. Police confirmed the suspension can now be lifted, and the bank will follow through accordingly.

Danantara says Bekasi waste-to-energy plant to operate from mid-2028

The Bekasi waste-to-energy facility in Bantargebang is expected to begin operations in mid-2028 after a groundbreaking led by Danantara Indonesia and Daya Energi Bersih Nusantara. The plant is designed to process up to 1,500 tonnes of waste per day into electricity for PLN, with power priced at USD 0.20 per kWh. The project is part of broader efforts to address Indonesia's urban waste emergency while creating green jobs and renewable energy.

Indonesia to Assemble AI GPU Chips by End of 2026 at Hashim-Indosat Joint Venture Plant

Indonesia will begin domestic assembly of Nvidia AI GPUs by December 2026 at a facility owned by PT Infra Fiber Teknologi, a joint venture between Indosat and Hashim Djojohadikusumo's Arsari Group. The plant, backed by approximately US$22 million in capital expenditure, aims to produce 140 to 150 H300 GPU units to meet soaring data centre demand. The company also plans a US$190 million submarine cable system to strengthen national digital infrastructure.

Bank Indonesia explains how the new KKI payment system works

Bank Indonesia has clarified that the new Indonesian Credit Card (KKI) is a deferred payment facility rather than a credit extension, allowing users to transact before funds are available. The instrument is intended to complement existing payment methods and increase digital payment penetration without promoting debt or excessive consumption. Launched on 17 August 2026, the KKI forms part of the Indonesian Payment System Blueprint 2030 and was introduced alongside an expansion of zero percent QRIS merchant discount rates for transactions up to Rp100,000.

Polda Metro Jaya Confirms Botok Pati's Account Can Be Reopened

Polda Metro Jaya has confirmed that the bank account of Supriyono, also known as Botok, a community activist from Pati Regency, can be reopened following a temporary transaction suspension. The police emphasised that the initial freeze was a precautionary measure to protect the personal data of Botok and his donors. Bank Mandiri has also pledged to reactivate the account promptly and apologised for any inconvenience caused.

Prabowo Targets Reforestation of Deforested Land in Indonesia Within 10 Years

President Prabowo Subianto has highlighted the loss of tree cover in East Nusa Tenggara and called for accelerated reforestation efforts, including the establishment of nurseries at provincial and district levels. He stressed that addressing the problem requires public education on land clearing without burning, alongside enforcement. The President also linked the region's deforestation to historical colonial-era timber exploitation.

Billy Mambrasar Pushes for UMKM Special Economic Zone in Batam to Boost Exports

Presidential Executive Committee member Billy Mambrasar has urged Batam and the Riau Islands to establish a Special Economic Zone dedicated to micro, small, and medium enterprises. The initiative aims to position UMKM as key players in export-import activities and address economic inequality in Batam. The proposal received positive feedback from local government officials.

South Korea scrambles fighter jets after Russian aircraft enter air defence zone

South Korea deployed fighter jets after several Russian military aircraft entered its air defence identification zone near the eastern islands of Dokdo and Ulleung on Tuesday afternoon. The aircraft did not violate South Korean airspace and later withdrew. The incident follows a similar intrusion by Chinese and Russian planes in late June, which prompted a formal protest from Seoul.

Prabowo Reveals Reason for Not Immediately Visiting NTT Earthquake Impact

President Prabowo Subianto has explained his decision to delay visiting earthquake-affected areas in East Nusa Tenggara, saying he wanted to give local officials space to focus on serving residents. He argued that large numbers of central government officials visiting disaster zones can distract regional authorities from their primary duties. The president stressed that the most important contribution from the centre is mobilising services and aid rather than symbolic visits.

MUI Secretary-General hopes NU Congress strengthens Islamic brotherhood and national unity

MUI Secretary-General Amirsyah Tambunan has expressed hope that the 35th Nahdlatul Ulama Congress will strengthen Islamic brotherhood and reinforce national unity. He described the event as a strategic national moment amid rapid modernisation and global geopolitical dynamics. The congress is scheduled to take place from 27 to 31 August 2026 at Tambakberas Islamic Boarding School in Jombang, East Java.

Welcoming National Customer Day, PLN UID Yogyakarta Promotes EV Charging Station Development in Tourist Areas

State electricity company PLN is expanding electric vehicle charging infrastructure across Yogyakarta's tourist destinations as part of its National Customer Day 2026 commitments. The initiative, discussed with the city's tourism office, aims to integrate charging facilities into attractions such as Malioboro, Kotabaru, and South Jogja. PLN is also exploring medium and slow charging concepts at destinations like Gembira Loka Zoo to allow visitors to charge vehicles while enjoying tourist activities.

Video: To Fix Problems at 1,074 State-Owned Enterprises, Danantara Carries Out Liquidation and Mergers

BPI Danantara is undertaking a major overhaul of Indonesia's 1,074 state-owned enterprises, more than half of which are loss-making and inefficient to the tune of Rp 50 trillion annually. The reform involves liquidation, divestment, consolidation and restructuring, with the aim of leaving just 254 profitable SOEs by the end of 2026. Chief Operating Officer Dony Oskaria outlined the progress in an interview with CNBC Indonesia.