Indonesian Political, Business & Finance News

Archive: 27 August 2026

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Lawe Alas Normalisation Completed Ahead of Schedule, Protecting Residential Areas

The Sumatera I River Basin Agency has completed normalisation and embankment reinforcement works along the Lawe Alas River in Gayo Lues and Southeast Aceh ahead of schedule. The Rp137 billion project, funded by the Ministry of Public Works, covers 30 emergency response points and includes 16,046 metres of river normalisation and 5,938 metres of gabion installation. Residents report that flooding has ceased and they can now sleep peacefully during heavy rain.

Prabowo to Attend 35th NU Congress in Jombang

President Prabowo Subianto is scheduled to officially open the 35th Nahdlatul Ulama Congress in Jombang, East Java. The visit underscores the government's recognition of NU's century-long role in Indonesian nation-building, religious harmony, and education. He will be accompanied by a limited delegation including Cabinet Secretary Teddy Indra Wijaya and State Secretary Prasetyo Hadi.

Penajam reserves 9,000 ha for integrated investment zone linked to Nusantara

The Penajam Paser Utara regency administration in East Kalimantan has set aside approximately 9,000 hectares for the Buluminung Industrial Estate, designed to attract large-scale industrial investment and integrate directly with the Nusantara capital city. The regency is seeking national strategic project status for the estate, which is expected to host investments worth tens of trillions of rupiah, including steel downstreaming. The initiative is part of broader efforts to boost investment and create jobs for local residents.

Pertamina urges public oversight of targeted subsidised fuel distribution

Pertamina Patra Niaga has called on the public to help monitor the distribution of subsidised fuel and LPG to ensure it reaches eligible recipients. The appeal follows projections that subsidised fuel consumption will exceed the 2026 quota. The company also reminded wealthier consumers to use non-subsidised products to preserve subsidies for those in need.

West Java SMEs Penetrate Dutch Market with First Soy Sauce Export Worth Rp 900 Million

PT Oishii Food Indonesia, an SME mentored by Bank Indonesia, has completed its first export of soy sauce to the Netherlands, shipping one container of 26,880 bottles valued at USD 51,550. The deal was facilitated through the Karya Kreatif Indonesia 2025 business matching programme, which connected the company with Dutch buyer InterAromat. Officials from Bank Indonesia, the Ministry of SMEs, and the West Java provincial government highlighted the achievement as evidence that sustained capacity-building and stakeholder collaboration can help local products reach international markets.

Buleleng 2027 Regional Budget Projected to Face Rp 85 Billion Deficit, Legislature Urges Boost in Local Revenue

Buleleng Regency's 2027 regional budget is projected to run a deficit of Rp 85 billion, with expenditure set at Rp 2.687 trillion against revenue of Rp 2.602 trillion. The shortfall will be covered through regional financing, while the local parliament has urged the government to increase locally generated revenue to expand fiscal space. Several potential revenue sources remain constrained by licensing issues under provincial authority.

CIA Chief Visits Russia, Warns Against Attacking NATO Countries

CIA Director John Ratcliffe made an unusual visit to Moscow to warn Russia against attacking NATO members, according to US media reports. The visit comes amid US intelligence assessments that Moscow may test the alliance with a limited attack in the coming years. Ratcliffe also discussed the war in Ukraine and the situation with Iran during his trip.

Police Arrest 65 People Suspected of Hijacking Today's Protest, Perpetrators Affiliated with Anarchist Network

Jakarta police have arrested 65 individuals suspected of planning to hijack a demonstration at the DPR building on Thursday. Two suspects were detained by the cyber directorate, while 63 others were apprehended in East Jakarta. Police say the groups are affiliated with anarchist networks and are currently being investigated for criminal liability.

PGA: Three villages warned of Mount Karangetang lava flows

Residents of three villages in North Sulawesi's Sitaro Islands Regency have been urged to remain vigilant as lava flows continue from Mount Karangetang's northern crater. The volcano remains at Alert Level II, with authorities advising people to stay outside the recommended danger zones.

Human Rights Ministry Absorbs Civil Society Aspirations for Future Human Rights Policy

Indonesia's Ministry of Human Rights has committed to incorporating civil society input from the 2026 Human Rights Consultation Forum into the formulation, implementation, and oversight of human rights policy. Deputy Minister Mugiyanto said the forum will become an annual event to strengthen dialogue between the government and civil society, including activists, academics, advocates, and journalists. The ministry also plans a Human Rights Development Planning Forum (Musrenbang HAM) to gather bottom-up input from government officials at all levels.

Gerindra's Kawendra Rejects Projo Chief Budi Arie's 'Historical Fault' Analogy as Ahistorical

Gerindra Deputy Secretary-General Kawendra Lukistian has dismissed Projo Chairman Budi Arie Setiadi's 'historical fault' analogy regarding possible accelerated political dynamics before the 2029 election as ahistorical. Kawendra stressed that President Prabowo Subianto's administration rests on the constitution and a legitimate popular mandate. He said Gerindra remains focused on supporting the government and delivering its programmes.

Aan, Killer of a Family in Palu, Undergoes Pre-Reconstruction After Arrest

Aan Kurniawan, 31, has undergone a pre-reconstruction of the murder of a family in Palu, Central Sulawesi, a day after his arrest. Police say the suspect acted out of resentment after being accused of laziness at work. The pre-reconstruction was held at the crime scene in Duyu sub-district.

Sharia Financial Inclusion Only 13 Percent, Bank Aladin Syariah Strengthens Digital Access

Indonesia's sharia financial literacy rate has reached 43.07 percent, yet inclusion stands at just 13.24 percent, highlighting a significant gap between understanding and actual usage. Bank Aladin Syariah is working to bridge this divide by expanding access through digital banking services and its ecosystem partnership with Alfa Group's network of over 25,000 minimarket outlets. The bank reported a net profit of Rp38.3 billion in the first half of 2026, with total assets of Rp15.1 trillion and more than 3.9 million registered customers.

Finance Ministry: PFII to adopt 'financial hub plus' concept

Indonesia's Ministry of Finance says the planned International Financial Centre (PFII) will operate as a 'financial hub plus', leveraging the country's natural resources and downstreaming agenda to differentiate itself from pure financial centres like Singapore. The centre will also capitalise on Indonesia's position as the world's largest Muslim-majority nation to develop cross-border sharia financial instruments. President Prabowo Subianto has announced Jakarta and Bali as the locations for the PFII.

Ahead of Harbolnas 2026: Indonesians Targeted to Spend Rp40 Trillion in 7 Days

The Indonesian government has set a target of Rp40 trillion in transactions for the 2026 National Online Shopping Day (Harbolnas), a 10% increase from last year's Rp36.4 trillion. Coordinating Minister for Economic Affairs Airlangga Hartarto said the event is expected to help drive fourth-quarter economic growth towards 6%. The government is also expanding the programme to include more digital platforms such as online travel agents and ride-hailing services.

Puan Affirms DPR Open to Receiving Public Aspirations

House Speaker Puan Maharani has reiterated that the Indonesian House of Representatives (DPR) is open to receiving public aspirations, following the presence of activist Supriyono alias Botok and his colleagues at a plenary session. She emphasised that all engagements must follow established procedures and mechanisms. The activists were granted an audience with DPR deputy speakers while the plenary session continued.

Renamed APKLI Merah Putih backs five government programmes

The Indonesian Street Vendors Association (APKLI) Perjuangan has rebranded as APKLI Merah Putih and pledged support for five priority government programmes, including the Free Nutritious Meals scheme and the 3 Million Houses programme. Newly elected chairman Ali Mahsun Atmo said the organisation would be at the forefront of safeguarding the programmes and pushing for legal action against any corruption.

Mladenov: Collapse of ceasefire could trigger escalation in Gaza Strip

Nickolay Mladenov, High Representative of the Board of Peace, has warned the UN Security Council that failure of the Israel–Hamas ceasefire would be a 'point of no return' for all parties. He cautioned that a return to large-scale escalation would leave no roadmap, no deployable government, and nothing left on the ground to rebuild. The ceasefire, brokered in October 2025 by Egypt, Qatar, the United States and Türkiye, remains incomplete amid disputes over sequencing of disarmament, troop withdrawal and humanitarian aid.

Polda Metro: AMPB Mass Rally Proceeds Orderly, Situation Safe and Peaceful

Polda Metro Jaya reported that a demonstration by the Pati United Community Alliance (AMPB) outside the MPR/DPR building proceeded in an orderly manner. Police confirmed that Jakarta remained safe and under control, with representatives of the demonstrators received by DPR leadership before the crowd dispersed peacefully. Authorities urged the public to maintain calm and avoid unverified information.

Customs Destroys 43.2 Million Illegal Cigarettes from Enforcement Operations in Surabaya

The East Java I Regional Customs Office, together with Sidoarjo Customs and the Surabaya city government, destroyed 43.2 million illegal cigarettes seized during the first half of 2026. The destroyed goods had an estimated value of Rp64.2 billion and would have caused potential state losses of Rp36 billion had they circulated. The action forms part of efforts to protect state revenue and create a fair business climate for compliant tobacco companies.

Bulog Sumsel Babel: SPHP rice distribution reaches 26,000 tonnes

Perum Bulog's South Sumatra and Bangka Belitung regional office has distributed approximately 26,000 tonnes of Stabilisation of Food Supply and Prices (SPHP) rice as of August 2026, nearing its year-end target of 33,300 tonnes. The agency has requested additional allocation and is streamlining partnership requirements to accelerate distribution. Bulog is also enforcing price controls, warning that retailers selling above the highest retail price will face sanctions including removal as distributors.

AMPB crowd disperses after receiving DPR commitment

The Pati United Community Alliance (AMPB) ended its demonstration outside the Indonesian House of Representatives (DPR) building in Jakarta after receiving a written commitment from DPR leadership to complete the Asset Forfeiture Bill by 15 December 2026. The protesters had demanded the bill's passage as part of efforts to strengthen corruption eradication. The crowd dispersed peacefully and returned to Pati, Central Java.

Minister highlights importance of revitalising 729 regional languages

Minister of Primary and Secondary Education Abdul Mu'ti has called on regional governments to strengthen policies for preserving Indonesia's 729 regional languages, warning that those without written traditions are most at risk of extinction. The number of recorded regional languages has risen from 719 to 729 following recent linguistic research. The government is promoting the 'Trigatra Bangun Bahasa' policy, which prioritises Indonesian while preserving regional languages and mastering foreign languages.

South Jakarta District Court to Deliver Pretrial Ruling for Febrie Adriansyah This Afternoon and Tomorrow

The South Jakarta District Court is scheduled to read out its ruling on the pretrial motion filed by former Junior Attorney General for Special Crimes Febrie Adriansyah on Thursday and Friday afternoons. The case challenges the seizure and search of his residence by the police and the Attorney General's Office. A separate pretrial hearing is also set to begin on Friday.

Puan Explains Why She Did Not Meet AMPB Protesters: We Shared Tasks

House Speaker Puan Maharani defended her absence from a meeting with protesters from the Pati United Community Alliance (AMPB), saying the DPR leadership routinely divides duties among its members. Activists expressed disappointment that Puan neither attended the plenary session nor met them directly, calling her absence a slight against the state.

Vocational School Students Among 65 Detained for Allegedly Hijacking DPR Protest

Police have detained 65 people, including vocational school students, suspected of planning to hijack a demonstration outside the DPR/MPR building in Jakarta. The suspects were apprehended in East Jakarta and originated from various cities including Bogor, Bekasi, Depok, Tangerang, and Bandung. Authorities seized weapons, petrol, and other materials believed to be intended for making Molotov cocktails.

Purbaya Not Lulled by Bright Economic Projections from Global Institutions for 2027

Finance Minister Purbaya Yudhi Sadewa has cautioned that despite international institutions forecasting a global economic rebound in 2027, significant geopolitical risks remain. He outlined how the 2027 State Budget (RAPBN) is designed to function as both a shock absorber and a countercyclical instrument to safeguard domestic stability and purchasing power.

Minister of Communication and Digital Reminds KPI That Its Main Compass Is the Public Interest

Minister of Communication and Digital Meutya Hafid has urged the Indonesian Broadcasting Commission (KPI) to prioritise the public interest as it faces increasingly complex media challenges. She emphasised the need for content diversity, guidance over punitive measures, and stronger public participation. The newly sworn-in KPI leadership pledged to align with President Prabowo Subianto's Asta Cita goals and to foster a healthy, sustainable broadcasting ecosystem.

Minister Arifah highlights importance of gender equality in parenting

Minister of Women's Empowerment and Child Protection Arifah Fauzi has stressed that household work and childcare should be a shared responsibility between fathers and mothers, not solely the mother's burden. She praised Surakarta's Gasmas movement as a breakthrough in promoting gender equality and balanced parenting roles. Surakarta Mayor Respati Achmad Ardianto added that active father involvement strengthens emotional bonds and helps prevent violence against children.

Said Abdullah Urges 2027 State Budget to Be More Impactful and Equitable

House Budget Committee Chairman Said Abdullah has called for the 2027 State Budget (APBN) to be more impactful and equitable, emphasising that every programme must have clear objectives, measurable impact, and direct correlation with growth, equity, and economic justice. He highlighted concerns over macroeconomic assumptions, data accuracy, and fiscal discipline, urging a review of targets for growth, unemployment, and the Gini ratio. Said also stressed the need for a roadmap towards a balanced budget and cautioned against new taxation that could burden the public.

Trade Minister: Government maintains chicken meat prices to approach consumer reference price

Trade Minister Budi Santoso has stated that the government will keep broiler chicken meat prices stable and close to the consumer reference price of Rp40,000 per kilogram. As of 26 August 2026, the national average price stood at around Rp41,000 per kilogram, slightly above the reference level. The minister emphasised that prices should not fall too far below the reference, as this would harm farmers' business sustainability.

Tehran: US has run out of options for new sanctions against Iran

Iranian parliamentary spokesman Hassan Ghashghavi has claimed that the United States has exhausted its sanctions options against Tehran, questioning what remains to be restricted. He also highlighted contradictions in statements by US Treasury Secretary Scott Bessent, who acknowledged that secondary sanctions on Iran's trading partners could risk collapsing the global financial system.

BI Forecasts Indonesia's Economy Could Reach 6% in 2027, Here Are the Keys

Bank Indonesia (BI) projects that Indonesia's economic growth could reach 6% in 2027, exceeding its official forecast range of 5.1%-5.9%. The central bank cites improved global economic prospects, accelerated national strategic projects, and optimised export proceeds as key drivers. This aligns with the government's target set in the 2027 State Budget Draft.

Police investigate funding flow for purchase of Molotov bomb materials and sharp weapons

Jakarta Metropolitan Police are tracing the financial flows used to purchase materials for Molotov bombs and sharp weapons ahead of a public demonstration near the DPR/MPR complex. Investigators suspect the funds came from personal money, third-party contributions, and open donations. The probe aims to identify recruiters, financiers, and organisers behind the planned action.

Ministry of Defence Explains Why Former KRI Ki Hajar Dewantara Is Being Auctioned

The Ministry of Defence has explained that the former training ship KRI Ki Hajar Dewantara is being auctioned because its age and technical condition mean it no longer meets the requirements for service with the Indonesian Navy. The vessel's weaponry was removed in 2018 and its pennant lowered in 2019, leaving it unable to operate independently. The government argues the sale is a rational step to avoid dead stock and maintenance costs, with proceeds contributing to non-tax state revenue.

Jakarta Police detain 65 ahead of parliament rallies

Jakarta police have detained 65 individuals in preemptive operations ahead of planned demonstrations at the national parliament, with authorities insisting the action is not intended to curb free speech but to ensure protests remain peaceful. Around 18,500 security personnel have been deployed across the capital as groups including the United Pati Community Alliance prepare to rally for the Asset Forfeiture Bill and capital punishment for corruption.

STIE Al-Madani and Polinela strengthen banana product downstreaming

STIE Al-Madani and Politeknik Negeri Lampung are providing business management assistance to UMKM Keripik Njik Njik in South Lampung to strengthen the downstreaming of banana products. The programme focuses on calculating production costs, enhancing digital marketing, and upgrading operational equipment. It is part of a 2026 community service initiative supported by the Ministry of Higher Education, Science, and Technology.

Examining the Widespread Controversy over DTSEN Decile Classification

The recent national socio-economic survey by Statistics Indonesia (BPS) has sparked public outcry over inaccurate decile classifications, with citizens in Yogyakarta and Mataram reporting being placed in higher economic brackets despite living modestly. The government has acknowledged the complaints and allocated Rp 7 trillion to improve the accuracy of the Single Socio-Economic Data (DTSEN).

From Income to Hope: PNM Helps Tika Drive Family Economy and Create Jobs

Tika Wulandari, an Account Officer at state-owned PNM, has transformed her salary into a boat for her fisherman father, enabling him to employ 20-25 people. Her story illustrates how PNM's empowerment model extends beyond its microfinance clients to its own employees, creating cascading economic benefits for families and communities.

Puan Explains Absence from Meeting with Pati Protesters at DPR

House Speaker Puan Maharani has explained her absence from a meeting between DPR leaders and protesters from the Pati community, citing a division of duties. She said she was chairing a plenary session while three deputy speakers met the demonstrators. The meeting resulted in an agreement to complete the Asset Forfeiture Bill by 15 December 2026, but the demand for the death penalty for corruptors reached an impasse.

List of Indonesia's 10 Largest Gas Producers

Indonesia's national gas production and distribution remain below the 2026 state budget targets as of July, with output averaging 6,544 MMSCFD against a target of 6,837 MMSCFD. SKK Migas attributes the shortfall to a pipeline leak at PT Transportasi Gas Indonesia and repeated unplanned shutdowns at BP Berau's Tangguh LNG facility. BP Berau remains the country's largest gas producer, delivering 1,478 MMSCFD, or 95.4% of its annual target.

Meta to tighten access limits on Facebook and Instagram for teenagers

Meta has announced stricter restrictions on Facebook and Instagram for users under 18 as part of a settlement with nearly all US states over the impact of its social media platforms. The measures include a two-hour daily usage cap, night and school modes, and enhanced parental controls. The company will also pay around US$18 billion to fund online youth safety initiatives.

Responding to Budi Arie's Discourse, Puan Maharani Affirms Elections Remain Every Five Years

House Speaker Puan Maharani has firmly rejected any suggestion of accelerating Indonesia's electoral timetable, insisting that presidential transitions must follow the constitutional five-year cycle. Her remarks respond to former Communications Minister Budi Arie Setiadi, who publicly speculated about political change occurring before the scheduled 2029 election. Puan stressed that all parties must adhere to the agreed legal framework to maintain democratic stability.

US Removes Syria from State Sponsors of Terrorism List, Three Countries Remain

The United States has officially removed Syria from its State Sponsors of Terrorism list, marking a new chapter in Washington–Damascus relations following the fall of Bashar al-Assad. The decision follows formal assurances from Damascus and is expected to ease Syria's access to international finance and trade. Iran, Cuba, and North Korea remain on the list.

Police Investigate Fundraising by Anarchist Group Disguised as Social Activities

Jakarta Metropolitan Police are investigating an anarchist group suspected of raising funds under the guise of social activities to hijack a protest at the DPR/MPR building. Investigators found indications that the collected donations were intended for unlawful purposes rather than the stated social causes. The police have detained 65 individuals, two of whom have been named suspects, and seized weapons including sharp objects, airsoft guns, and Molotov cocktails.

Farizon's First Overseas KD Factory Opens in Indonesia, First Local-Assembled V8E Rolls Off Line

Chinese commercial vehicle manufacturer Farizon has opened its first overseas knock-down factory in Indonesia, located around 80 kilometres southeast of Jakarta, with the first locally assembled V8E electric van rolling off the production line. The facility will initially assemble the V8E, which has been calibrated for Indonesian urban roads, logistics scenarios and climate, and offers a pure electric range of over 400 kilometres. The move signals growing foreign investment in Indonesia's electric vehicle and commercial transport sectors, supporting the country's push towards low-carbon logistics solutions.

Turots Exhibition at NU Congress Showcases Intellectual Heritage of Nusantara Ulama

The Turots Exhibition at the 35th Nahdlatul Ulama Congress in Jombang highlights efforts to preserve and promote the written intellectual heritage of Indonesian ulama. East Java Governor Khofifah Indar Parawansa emphasised that these classical manuscripts are not merely historical artefacts but a vital chain of scholarship for national civilisation. The initiative includes preservation, digitalisation, and international collaboration to position Nusantara's Islamic scholarship as a global reference.

PNM Becomes Tika's Path to Revive Family Economy and Create Jobs

Tika Wulandari, an Account Officer at state-owned PNM, has used her income to lift her family out of poverty, buy her fisherman father his own boat, and create work for around 20 to 25 people. Her story illustrates how PNM's empowerment model extends beyond its microfinance clients to its own employees. PNM's CEO Kindaris says Tika's journey reflects the company's mission to spread benefits from one family to the wider community.

OJK records 22.9 million crypto consumers in Indonesia

Indonesia's Financial Services Authority (OJK) has reported that the number of crypto asset consumers in the country reached 22.9 million, with transaction values hitting Rp20.52 trillion as of July 2026. The regulator highlighted the sector's growth and the completion of its supervisory transition from the commodities authority. OJK emphasised the need for balanced regulation to ensure safety without stifling innovation.

EU countries urge European Commission to use frozen Russian assets for Ukraine

Several EU member states are pressing the European Commission to revive efforts to use frozen Russian state assets to fund Ukraine amid fears Kyiv faces a new budget crisis. The initiative, reportedly backed by Sweden, the Netherlands, Spain and Poland, seeks technical work and possible legal mechanisms to bypass Belgium's veto. Moscow has repeatedly condemned the asset freezes as theft and warned of retaliation.