Indonesian Political, Business & Finance News

Archive: 28 August 2026

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Sheinbaum proposes ban on dual citizenship for heads of government

Mexican President Claudia Sheinbaum has announced a constitutional amendment initiative requiring presidential, gubernatorial and Mexico City mayoral candidates to hold only Mexican citizenship. The proposal aims to remove ambiguity in the current constitution regarding whether dual nationals must renounce their second citizenship before standing for office. Sheinbaum linked the need for reform to the dual citizenship case of former Tamaulipas governor Francisco Garcia Cabeza de Vaca, who was born in Texas.

Jakarta BPBD and BMKG conduct weather modification operation to anticipate dry season threats

The Jakarta provincial government, through its Regional Disaster Management Agency (BPBD), has partnered with the Meteorology, Climatology and Geophysics Agency (BMKG) to carry out a weather modification operation aimed at mitigating the impacts of the dry season. The operation has already produced rain in several areas and preliminary evaluations indicate a reduction in pollutants of between 23 and 50 percent. Officials stressed that weather modification is only one instrument among many needed to address Jakarta's air quality problems comprehensively.

KPK seizes Rp6 billion after questioning Denpasar immigration chief and two other witnesses

Indonesia's Corruption Eradication Commission (KPK) has seized more than Rp6 billion in cash after questioning the head of the Denpasar immigration office and two other witnesses in connection with an alleged extortion scheme involving foreign nationals' residence permits. The money is suspected to have been obtained from processing stay permits for foreign nationals. The case stems from a sting operation that has already led to eight suspects being named, including former Deputy Minister of Immigration and Corrections Silmy Karim.

Police Say One Person Died in Pejompongan Related to 27 August Unrest

Polda Metro Jaya has confirmed that a resident died following unrest that erupted after a demonstration in front of the DPR/MPR building on Thursday, 27 August. The victim was evacuated after conditions were deemed safe and taken to hospital, where he was pronounced dead. The family has declined an autopsy, limiting investigators' ability to determine the cause of death.

Not Just Entrepreneurs, Now It's Easier to Earn Money with AI Assistance

Indosat Ooredoo Hutchison is promoting AI-powered tools like Adobe Express to help MSME entrepreneurs overcome design limitations and market their products more effectively. The company is offering free full access to Adobe Express for IM3 customers who purchase any internet package, with the aim of facilitating creative thinking and income generation through technology.

Japan Hit by Disaster, Immediately Evacuates 380,000 Residents

Torrential rain triggered flash floods and landslides across Ishikawa and Toyama prefectures in north-central Japan, prompting authorities to urge over 380,000 residents to evacuate. The extreme weather submerged homes, cut off roads, and caused power outages affecting more than 1,000 households. The disaster follows deadly flooding in Chiba prefecture earlier in the month that claimed at least 13 lives.

Synnex Metrodata Partners with Global Edge-Cloud Platform to Boost Cybersecurity

PT Synnex Metrodata Indonesia has announced a partnership with Fastly, a global edge-cloud platform provider, to help Indonesian organisations improve website and application performance while defending against evolving cyber threats. The collaboration will expand access to Fastly's programmable edge cloud across key sectors including banking, retail, telecommunications and digital-native businesses. The move comes as Indonesia's digital transformation market is projected to grow at a compound annual growth rate of 19.11 per cent between 2026 and 2031.

Israel Kills Three Gazans from the Same Family

Three Palestinian farmers from the Abdeen family were killed by an Israeli drone strike in Al-Qarara, northeast of Khan Yunis, despite a ceasefire in force since October 2025. The attack occurred as the victims gathered outside their home, with further Israeli fire reported in central and southern Gaza. Palestinian sources say Israeli violations of the truce have killed more than 1,300 people and wounded over 4,300 since the agreement took effect.

Gen Z Begins Abandoning WhatsApp and Telegram for a New Way of Chatting

A new trend among Generation Z is seeing users move away from instant messaging apps like WhatsApp and Telegram towards applications that deliberately slow down message delivery. Apps such as Carrier Pidge and Roost simulate messages being carried by virtual pigeons, introducing waiting times and even a small chance of message loss. The phenomenon reflects a broader shift in attitudes towards communication, where users are seeking more meaningful and less pressurised interactions.

BGN chief explains why SPPG heads must be present from 2 a.m.

The Head of the National Nutrition Agency (BGN), Sudaryono, has explained that heads of Nutrition Fulfilment Service Units (SPPG) must be on duty from 2 a.m. to prevent food poisoning incidents in the Free Nutritious Meals (MBG) programme. The agency has issued a circular setting operational hours and has dismissed 66 kitchen heads for disciplinary violations. A layered monitoring system, including virtual meetings at critical hours, has also been introduced.

Pariaman targets post-disaster irrigation repairs to be completed by September

The Pariaman city government in West Sumatra is targeting the repair of eight irrigation systems damaged by hydrometeorological disasters in late 2025 to be completed by September 2026. The repairs, funded by approximately Rp1 billion from central government transfers, have reached over 70 percent physical progress. The damage affected 200 to 300 hectares of rice fields across three sub-districts.

Madiun Regency receives LSDP programme from central government for waste management

Madiun Regency has been selected as one of 30 regions to receive the Local Service Delivery Improvement Project (LSDP), a World Bank-supported initiative worth billions of rupiah. The programme focuses on integrated waste management from upstream to downstream under a zero-waste concept. The regency has prepared approximately two hectares of land at the Kaliabu landfill site in Mejayan District for the construction of an integrated waste processing facility.

Untan students create AI-based building crack detector

Students at Tanjungpura University in Pontianak have developed WALL-INSPECT, an artificial intelligence device that detects wall cracks in real time. The tool combines convolutional neural networks with depth sensors to measure damage dimensions and provide repair recommendations. It was created under the 2026 Student Creativity Programme funded by the Ministry of Higher Education, Science, and Technology.

MPR Speaker: Forest fires concerning, but government serious in handling them

MPR Speaker Ahmad Muzani has acknowledged that forest and land fires across Indonesia are worrying, but stressed that the government is taking the issue seriously. He noted that challenging terrain and prolonged drought are hampering efforts, while fires have spread to conservation areas and new regions including Java and Papua. Muzani also called for public support and urged personnel to exercise caution.

Prabowo to Form Public Service Agency for Coal and Gas Procurement for Electricity

President Prabowo Subianto is planning to establish a Public Service Agency (BLU) in the energy sector to secure coal and natural gas supplies for power plants. The agency will be responsible for procuring and distributing these fuels to ensure stable, guaranteed, and affordable electricity for the public. A draft presidential regulation outlines the agency's duties, including the authority to purchase from private miners, manage its own coal mines, and use hedging to stabilise prices.

Minister prepares scholarships for students affected by NTT disaster

The Minister of Higher Education, Science, and Technology has announced one-semester scholarships for university students affected by the disaster in East Nusa Tenggara. Initial data indicates around 4,000 to 5,000 students have been impacted. The government is also assessing damage to higher education facilities and considering reallocating budgets for repairs.

Pramono inaugurates Betawi Customary and Cultural Council at City Hall

Jakarta Governor Pramono Anung Wibowo has inaugurated the Betawi Customary and Cultural Council, completing the institutional restructuring required under Law Number 2 of 2024 on the Special Capital Region of Jakarta. The council is chaired by former Jakarta Governor Fauzi Bowo, a prominent Betawi figure. Pramono said the Jakarta provincial government will act as a strategic partner in developing Betawi culture, particularly ahead of Jakarta's 500th anniversary in 2027.

Ministry of Tourism: Dieng Culture Festival strengthens Indonesia's tourism image

The Ministry of Tourism has highlighted the Dieng Culture Festival 2026 as a strategic event for reinforcing Indonesia's authentic tourism image and boosting global destination competitiveness. The festival, now in its 16th year, is community-driven and provides economic benefits to local micro, small and medium enterprises. The ministry will conduct an impact survey to evaluate the event's benefits and support national tourism targets.

MPR Deputy Speaker Urges Use of Archives for History Teaching Materials

Deputy Speaker of the People's Consultative Assembly (MPR) Lestari Moerdijat has called for greater use of national archives as living and contextual history learning materials. She welcomed a memorandum of understanding between the Ministry of Primary and Secondary Education and the National Archives of Indonesia (ANRI), describing it as a strategic step to strengthen the nation's collective memory. Moerdijat argued that well-managed archives can help end public debates over national history that lack adequate documentary foundations.

Second Pretrial Motion by Febrie Adriansyah Rejected Again, South Jakarta District Court Explains Reasons

The South Jakarta District Court has rejected a second pretrial motion filed by former Deputy Attorney General for Special Crimes Febrie Adriansyah, who challenged his designation as a suspect and detention in a money laundering case. The judge ruled that prosecutors had at least two pieces of evidence linking Febrie to the alleged predicate offence and his assets. The court also found that his detention met the objective requirements under applicable law.

Fuel Subsidies Miss Their Target, Here's the Economic Data

An economist from INDEF argues that Indonesia's fuel subsidies are poorly targeted, with nearly half of subsidised fuel consumption enjoyed by the wealthiest 20% of households. The government is currently reviewing restrictions on Pertalite fuel, though no final decision has been announced.

Minister Muhaimin: Pesantren transformation can break the poverty chain

Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar has called for Islamic boarding schools, or pesantren, to transform themselves into centres of science and technology as a way to raise living standards and break the cycle of poverty. Speaking at an AI and digital economy training event in Jombang, East Java, he argued that education is the fastest way to cut the poverty chain. He encouraged pesantren to equip students with relevant skills, entrepreneurial spirit, and economic independence.

Police Say Total of 89 Suspects in Forest and Land Fire Cases

The Indonesian National Police have named 89 individuals as suspects in forest and land fire cases across Sumatra and Kalimantan, an increase from 72 previously announced. Investigators are still examining whether corporations may have ordered the burning, with current suspects limited to individuals. The suspects face charges under forestry, plantation, environmental protection, and criminal code laws.

Story of a Flores Farmer's Son Now Serving at Sekolah Rakyat

Sulaiman Sulang, a former state vocational school administrator, has found a new calling as a residential mentor at a Sekolah Rakyat in Malang Regency, East Java. The school serves children from the poorest households, many of whom have dropped out or lost their parents. Drawing on his own background as the son of poor farmers from Flores, Sulaiman hopes to inspire his students to overcome hardship through education and perseverance.

Pertamina Adds 700 KL of Pertalite, Aims to Normalise Queues at Bali Petrol Stations

Pertamina Patra Niaga has increased Pertalite distribution in Bali by 700 kilolitres to address fuel shortages and long queues at petrol stations. The company attributes the temporary disruption to stock adjustments at the Manggis Integrated Terminal and Sanggaran Fuel Terminal. Additional supplies totalling 24,200 kilolitres are scheduled to arrive to restore normal service.

Police: Slipi traffic light area in West Jakarta now conducive after protest

Police have confirmed that the Slipi traffic light area in Palmerah, West Jakarta, has returned to normal following a protest that included the burning of a traffic post. Authorities are urging residents to resume their activities without concern, while local government and police continue to monitor security and public order.

Remarkable! Instalments from Rp1 Million for These Homes—Prices Start at Rp166 Million

Developers at the Danantara Housing Expo 2026 are offering homes with monthly instalments starting from around Rp1 million, targeting young buyers including Generation Z. Options range from a subsidised house in Serang priced at Rp166 million to a commercial unit in Parung Panjang with initial instalments of Rp1.8 million under a special interest scheme.

Malang Police Collaborate with Online Motorcycle Taxi Drivers to Maintain Public Order

Malang Police have partnered with online motorcycle taxi (ojol) drivers to help prevent disturbances to public order and security in Malang Regency. The collaboration leverages the drivers' high mobility and direct contact with communities to accelerate the reporting of potential security threats. The initiative was launched during a gathering that included communal prayers and donations to orphans.

BNPB conducts weather modification to protect Way Kambas elephants

Indonesia's National Disaster Mitigation Agency (BNPB) has carried out cloud seeding operations over East Lampung to trigger rainfall and protect the habitat of Sumatran elephants in Way Kambas National Park from forest and land fires. The operation, which dispersed 1,600 kilograms of salt over two days, successfully produced light rain over key areas and was prompted by a surge in fire hotspots and 674.5 hectares of burned land. The agency emphasised that President Prabowo Subianto has given special attention to safeguarding the conservation area and its elephant population.

Come Along! CT Ready to Share Tips at Bank Mega Educational Class

Chairul Tanjung, one of Indonesia's most successful entrepreneurs, will share his financial journey at an Educational Class session hosted by Bank Mega during the LPS Financial Festival 2026 in Lampung. The session, titled 'From First Money to Financial Freedom', will also feature Bank Mega President Director Kostaman Thayib. The festival aims to boost financial literacy across Indonesia.

Caritas Indonesia and Airbnb.org provide temporary housing for Flores earthquake victims

Caritas Indonesia and Airbnb.org are offering free temporary accommodation to residents and emergency responders affected by the Flores earthquake in East Nusa Tenggara. Eligible individuals will receive Airbnb credits to book free stays, with all costs covered by Airbnb.org donors. The initiative aims to ease the burden on displaced people and support Caritas Indonesia's broader disaster response efforts.

Court rejects Febrie Adriansyah's pre-trial motion over suspect status

The South Jakarta District Court has dismissed a pre-trial motion filed by former Deputy Attorney General for Special Crimes Febrie Adriansyah challenging his designation as a suspect in a money laundering case. The ruling follows an earlier rejection of a separate motion concerning searches and seizures. Febrie and private party Nurman Herin were named suspects by the Attorney General's Office.

Bank Indonesia: 25 Banks Favor Securities over Lending

Bank Indonesia has identified 25 commercial banks that are prioritising securities holdings over loan disbursement, with these lenders accounting for nearly half of the industry's total securities. The central bank is introducing new macroprudential incentives from September 2026, including a 2 percent reduction in the Statutory Reserve Requirement for banks keeping their securities ratio below 19 percent, to encourage lending. The policy aims to rebalance bank portfolios towards credit extension, particularly to priority economic sectors, though industry representatives note that loan demand remains uneven across market segments.

BRIN: Cassava flour for forest fire suppression still in trial phase

Indonesia's National Research and Innovation Agency (BRIN) has clarified that the use of cassava flour to help extinguish forest and land fires remains under theoretical study and testing. The agency is working with the National Police to develop application methods suitable for large-scale fires. BRIN has urged the public not to assume the technique is ready for widespread deployment.

South Jakarta Mayor urges scouts to make real contributions to society

South Jakarta Mayor Syafrin Liputo has called on the Scout Movement to move beyond ceremonial activities and provide tangible solutions for the community, particularly in supporting food self-sufficiency. Speaking at the 65th Scout Day commemoration, he emphasised that food security involves education, skills, technological innovation, entrepreneurship and environmental awareness. The mayor also urged the local scout council to strengthen its organisational structure and develop focused skills programmes.

Video: Helping MSMEs Level Up, BPD Bali - Bank Lampung Partners with Rural Banks

Regional development banks are stepping up efforts to help micro, small and medium enterprises grow by providing financial mentoring and digital payment services. Bank Lampung is focusing on assisting MSMEs with credit requirements such as financial reporting and cash flow management, while BPD Bali is strengthening digitalisation through QRIS Tap and cross-border QRIS. The strategies were discussed at the Regional Bank Summit in Jakarta.

Primary School Teacher in Buleleng Allegedly Sexually Abused 12-Year-Old Pupil Four Times

A 35-year-old primary school teacher in Buleleng, Bali, has been named a suspect for allegedly sexually abusing a 12-year-old pupil on four occasions between March and June 2026. Police say the alleged assaults took place in the school's health room and staff toilet, with the suspect using TikTok and WhatsApp to communicate with the victim. The suspect is now in police custody as investigations continue.

WWF sees Indonesia's domestic market as strategic for sustainable palm oil

WWF Indonesia believes the country's large domestic palm oil market can drive demand for sustainable products. Domestic consumption reached 12.99 million tonnes in the first half of 2026, boosted by the B50 biodiesel mandate. The organisation stresses that market transformation must be accompanied by supply chain transparency and upstream producer readiness.

Three Years of Investortrust: Present to Educate

Investortrust.id marks its third anniversary on 29 August 2026, reaffirming its mission to improve financial literacy among Indonesians. The news portal positions itself as a trusted reference for business, finance, and investment, emphasising accuracy and context amid the spread of misinformation. It aims to help shift Indonesia from a saving society towards an investing society ahead of the 2045 golden generation goal.

Prabowo Hosts Timor-Leste's Ramos Horta, Nobel Laureates at Palace Today

President Prabowo Subianto received Timor-Leste President Jose Ramos Horta and a delegation of around 20 Nobel laureates at the Presidential Palace in Jakarta. The visit followed a science meeting in Timor-Leste and was described as a courtesy call, with the group also meeting former president Megawati Soekarnoputri to discuss science, technology, and their impact on humanity.

CCTV Damaged During 27 August Protest, Pramono: Who Did It and What Was the Aim?

Jakarta Governor Pramono Anung has ordered an investigation into the vandalism of CCTV cameras during the 27 August mass protest. He has instructed the Jakarta Communication, Informatics and Statistics Agency to identify the perpetrators and their motives. The governor stressed that damaging public facilities is strictly prohibited and further action will be taken if those responsible are identified.

PTPN I to optimise 10,000 hectares of land for maize cultivation

State-owned plantation firm PTPN I has signed agreements to utilise 10,000 hectares of land for maize cultivation in the 2026 rendeng season, supporting national food and energy security. The land is being prepared for replanting of perennial crops and will be temporarily used for seasonal planting. Management stressed the programme must deliver real productivity and value addition, not merely meet geographic targets.

Prabowo Meets Timor Leste President and 10 Nobel Laureates, Discusses Cooperation

President Prabowo Subianto met with Timor Leste President José Ramos-Horta and ten Nobel laureates in Jakarta to discuss strengthening bilateral relations and cooperation in science and technology. The meeting also covered strategic programmes such as food security, the Free Nutritious Meals programme, and conservation efforts. Prabowo encouraged the Nobel laureates to collaborate with Indonesian researchers and academics.

This Week in the Indonesian Economy (21-27 Aug 2026)

It was a week in which Indonesia's economic ambitions collided with the messiness of real governance: a landmark central bank appointment, a sprawling housing expo, a budget under parliamentary scrutiny, and a sovereign wealth fund simultaneously restructuring state enterprises, breaking ground on green infrastructure, and fending off accusations of opacity.

This Week in Indonesian Politics (21-27 Aug 2026)

The final week of August 2026 proved to be one of the most consequential in recent Indonesian political memory, as the streets of Jakarta filled with protesters, the courts handed down significant rulings, and President Prabowo Subianto made his presence felt both at a landmark Islamic congress and at the epicentre of a natural disaster.

Gov't sets Rp3 mln aid for disaster-hit Sumatra micro businesses

The Indonesian government will provide Rp3 million in direct cash assistance to more than 400,000 micro-entrepreneurs in three Sumatran provinces affected by the late 2025 floods and landslides, with around Rp600 billion allocated for 2026 and an equal amount for 2027. Priority is given to businesses without active bank loans, while those with outstanding People's Business Credit will receive separate relief including interest subsidies and loan restructuring. A multi-tiered verification system involving local government recommendations is being used to ensure the funds reach eligible recipients and support local economic recovery.

Police: Rioters Emerged After Protest Outside DPR Building Ended

Jakarta police have detained 322 people following a demonstration outside the MPR/DPR complex, stating that a group of rioters arrived after the main protest had dispersed. The group allegedly engaged in vandalism, arson and threw objects at officers. Those detained include 160 minors aged 12 to 19, and all remain under investigation.

This Week in Indonesian Business and Investment (21-27 Aug 2026)

The week of 21 to 27 August 2026 proved to be one of considerable consequence for Indonesia's business and investment landscape, with developments spanning monetary policy leadership, trade architecture, capital market mechanics, sovereign investment activity, and the evolving shape of the financial services industry.

Consumers Shun Cheap Phones, Flock to Devices Priced Above Rp10 Million

Global premium smartphone sales grew 5% year-on-year in the first half of 2026, reaching a record 29% share of total shipments, according to Counterpoint Research. Rising memory component costs have disproportionately hit budget and mid-range devices, narrowing the price gap with discounted flagship models. Apple and Samsung continue to dominate the premium segment, while Chinese brands Oppo and vivo posted the strongest growth rates.

Creative Residents of Petukangan Utara Turn Plastic Bottle Waste into Brooms

Residents of RT 05/02 in Petukangan Utara, South Jakarta, have developed a community recycling initiative that transforms discarded plastic bottles into brooms for sale. The scheme, which has been running for about five months, provides additional income for participants while helping to reduce plastic waste. Products are marketed online and have reached customers across Jabodetabek, Sumatra, Bali, and Sulawesi.