Indonesian Political, Business & Finance News

Archive: 3 August 2026

Showing 651-700 of 1,519 articles

Revealed: China's 24-Hour Surveillance Tactics to Spy on Global Citizens

A security researcher accidentally uncovered a Chinese surveillance platform that tracked thousands of foreign nationals in real-time, integrating facial recognition with financial, medical, and travel data. The system, linked to a robotics firm and local police, monitored journalists, students, and citizens from specific countries, even mapping their social networks. The platform was taken offline after the breach was reported, raising serious concerns about the absence of privacy protections in China.

KSSK Projects Indonesia's Q2-2026 Economic Growth at Around 5.4%

The Financial System Stability Committee (KSSK) projects Indonesia's economic growth for the second quarter of 2026 to be around 5.4%, slightly below the 5.61% recorded in the first quarter. The slowdown is attributed to global economic uncertainty, including volatile energy prices and capital outflows. The government anticipates a recovery in the second half of the year, with growth expected to reach between 5.6% and 6%, supported by accelerated state spending and investment-friendly policies.

First Trial for Former Religious Affairs Minister Yaqut Set for 11 August

The inaugural trial for former Indonesian Religious Affairs Minister Yaqut Cholil Qoumas, who is accused of corruption related to the allocation of additional Hajj quotas, has been scheduled for 11 August 2026 at the Central Jakarta District Court. Three other defendants, including a former special staff member and two private sector executives, will also face trial on the same day. The Corruption Eradication Commission (KPK) alleges that bribes were paid to secure the special quota, resulting in state losses and the deferral of thousands of regular pilgrims' departures.

137 SPPG Kitchen Heads Dismissed Over Poisoning and Corruption

The Head of the National Nutrition Agency (BGN) has dismissed 137 kitchen heads from the Nutrition Fulfilment Service Unit (SPPG) across Indonesia. The dismissals follow disciplinary issues including a mass food poisoning incident at a Semarang school and cases of phishing involving the misappropriation of funds. The agency has enforced a zero-tolerance policy towards negligence and corruption.

Klungkung Residents Holding Mass Ngaben Receive Rp 5 Million Aid per Deceased

The Klungkung Regency Government in Bali is providing financial assistance of Rp 5 million per deceased for communities conducting a mass Ngaben cremation ceremony. The aid, capped at Rp 150 million per traditional village group, aims to ease the economic burden on residents performing the sacred Pitra Yadnya ritual. Bupati I Made Satria stated the programme reflects the local government's commitment to preserving Balinese cultural and religious traditions.

Firefighter Who Died at East Jakarta TPS Had Been Advised Not to Join Operation

A firefighter in East Jakarta who died while battling a blaze at an illegal waste disposal site had been advised by his subordinates not to participate due to a recent heart operation. Despite the warning, he insisted on carrying out his duties, later collapsing from exhaustion and suffering a fatal heart attack.

Photojournalism exhibition 'Prahara Pulau Emas' opens at Aceh Tsunami Museum

A photojournalism exhibition titled 'Prahara Pulau Emas' has opened at the Aceh Tsunami Museum in Banda Aceh, showcasing 65 works by members of the Indonesian Photojournalists Association (PFI). The collection documents the devastating impact of hydrometeorological disasters that struck Aceh, North Sumatra, and West Sumatra provinces in late November 2025. The exhibition serves as both a historical record and a reminder of the region's vulnerability to extreme weather events.

Purbalingga Government Insures 1,950 Hectares of Rice Fields Against El Nino Risks

The Purbalingga Regency Government is insuring 1,950 hectares of rice fields in 2026 to protect farmers from crop failure caused by El Nino and pest attacks. The insurance premiums, amounting to Rp180,000 per hectare, are fully covered by the central and regional budgets. This initiative aims to provide a safety net for farmers, particularly in drought-prone areas, after the program was paused in 2025.

LPS Reports Growth in Deposits Across All Customer Segments

The Indonesia Deposit Insurance Corporation (LPS) has reported that deposit growth remained robust across all customer segments as of June 2026, with corporate deposits leading the surge. The agency also maintained its guarantee interest rates and noted that the majority of bank resolutions in the first half of the year were due to poor governance and internal disputes.

Lampung Financial Festival 2026 Set to Launch, Don't Forget to Register!

The Indonesia Deposit Insurance Corporation (LPS) and CNBC Indonesia are bringing the Financial Festival to Lampung on 5-6 September 2026, following successful events in Surabaya, Medan, and Yogyakarta. The festival aims to boost financial literacy and inclusion by connecting policymakers, regulators, industry players, and the public. It forms part of a broader national effort to ensure economic stability, particularly as over 15 million productive-age Indonesians still lack a bank account.

UK Threatened with Recession

The United Kingdom faces a potential recession if the Strait of Hormuz remains closed until 2027, according to consultancy EY. Prolonged disruption to the strategic energy shipping route could cause the British economy to contract by 0.2% in 2027 and drive inflation up to 6.4%. The Bank of England is expected to hold interest rates steady this year before cutting them in 2027 to support growth.

Iran Denies Talks with US, Discusses Hormuz Strait with Oman

Iran has refuted claims of negotiations with the United States, clarifying that its current discussions are solely with Oman regarding maritime security. Tehran is cooperating with Muscat to establish a temporary shipping lane in the strategic Strait of Hormuz. The denial follows remarks by US President Donald Trump suggesting talks with Iran were imminent.

Australia Confirms First Mass Wildlife Deaths from Bird Flu

Australia has confirmed its first mass die-off of wild animals linked to the deadly H5 avian influenza, with great crested terns found on an island off the coast of South Australia. Federal ministers have acknowledged that significant losses are inevitable now the virus is spreading in the natural environment, though the risk to human health remains low. The government has activated a national management plan and committed additional funding to bolster biosecurity, particularly within the poultry sector.

Government Denies Restricting Media Coverage of Protests

The Indonesian government has refuted claims it is restricting media coverage of public demonstrations. Minister of Communication and Digital Affairs Meutya Hafid emphasised that the press is free to report in accordance with the law. The statement follows public concern over alleged limitations on reporting recent protests by workers and students.

75 Red and White Cooperative Outlets Operational in Southeast Sulawesi

A total of 75 Red and White Village Cooperative outlets have commenced operations in Southeast Sulawesi as of July 2026. The outlets recorded 1,055 transactions worth Rp25.22 million throughout the year, primarily involving staple goods and subsidised energy. The initiative is part of a broader government programme to strengthen village-level economic institutions.

Five Police Officers Honoured with Hoegeng Awards 2026, Kapolri Praises Integrity

Five Indonesian police officers have been selected from 9,000 public nominations to receive the prestigious Hoegeng Awards 2026. National Police Chief General Listyo Sigit Prabowo praised the winners for their dedication and integrity, highlighting that the awards reflect the public's growing trust in the police force. The awards, supported by CT Corp and Bank Mandiri, aim to inspire a new generation of officers committed to public service.

Ministry strengthens madrasa transformation through modernisation and green curriculum

The Religious Affairs Ministry is prioritising madrasa modernisation as a key strategy for national human resource development, with 556 schools revitalised and digital learning tools distributed. A new Love-Based Curriculum and an Ecotheology Programme have also been introduced to foster tolerance, character, and environmental stewardship among students.

Thai PM Anutin Arrives at Halim Perdanakusuma, Welcomed by Coordinating Minister for Political and Security Affairs

Thai Prime Minister Anutin Charnvirakul arrived at Halim Perdanakusuma Air Force Base in Jakarta on Monday, where he was welcomed by Indonesia's Coordinating Minister for Political and Security Affairs, Djamari Chaniago. The visit, which includes a bilateral meeting with President Prabowo Subianto at the Merdeka Palace, underscores ongoing diplomatic engagement between the two Southeast Asian neighbours.

Bareskrim Uncovers 'Pay Later' System in 20kg Cannabis Smuggling to North Jakarta

The Indonesian National Police's Criminal Investigation Agency (Bareskrim) has revealed a 'pay later' scheme used in the trafficking of cannabis from North Sumatra to Jakarta. A suspect was arrested at Bakauheni Port with 20 kilograms of cannabis, which he obtained on credit to be paid after the drugs were sold. The operation is estimated to have saved over 26,000 people from potential drug abuse.

Bandung City Government Investigates Business Permits on Jalan Riau Following Tree Felling on Pavement

The Bandung City Government is expanding its investigation into the felling of ten shade trees on Jalan RE Martadinata, escalating the case from a minor bylaw violation to a suspected criminal offence. Authorities are also scrutinising the business and building permits of establishments behind the felling site, including a padel court, café, and video screen. The mayor has warned that if all criminal elements are proven, suspects could face over three years in prison and fines of billions of rupiah.

BPJS Kesehatan Strengthens Collaboration with Four Ministries for Sustainable JKN

BPJS Kesehatan is deepening cross-sector collaboration with four government ministries and agencies to address persistent challenges in Indonesia's National Health Insurance (JKN) programme. The partnerships aim to synchronise membership data, improve financing mechanisms, and enhance protection for vulnerable groups, including migrant workers. The initiative is designed to create a more accountable and sustainable health ecosystem based on accurate data and regulatory compliance.

Yaqut's legal team says trial will be moment of truth in hajj quota case

The legal team for former Religious Affairs Minister Yaqut Cholil Qoumas has stated that the upcoming trial will serve as a crucial forum to test the corruption charges against him. They plan to challenge the prosecution's construction of the case, particularly regarding the alleged abuse of authority and the claimed state losses of IDR 622 billion. The defence also intends to question the legal character of the additional hajj quota and the status of pilgrims' funds, arguing they are not part of the state budget.

IHSG Closes Lower Tracking Asian Markets Amid Geopolitical Sentiment

The Indonesia Stock Exchange Composite Index (IHSG) ended slightly lower on Monday, mirroring a broader decline across Asian markets driven by geopolitical tensions in the Middle East. Despite a cancelled US strike on Iran, market uncertainty persists over the lack of a permanent peace deal, compounded by mixed domestic data including deflation and a trade deficit. The index slipped 0.03% to 6,234.50, with the technology and energy sectors leading the declines.

Nurturing International Friendship Through Kites

The International Kite Festival 2026 in Garut, West Java, brought together participants from across Indonesia and 12 other nations, transforming the sky into a canvas of cultural expression. The event highlighted how a shared hobby can transcend borders, fostering unity and peace among diverse communities. Organisers and participants emphasised that kite flying serves as a powerful medium for strengthening international brotherhood and cultural interaction.

Seven Provinces Under BMKG Level 1 Warning as Boiling Heat Hits Dry Season

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has issued a Level 1 warning for seven provinces as a strong El Niño intensifies, with the phenomenon expected to last until early 2027. The agency reports that 73.8% of the country is now experiencing the dry season, with some areas recording up to 90 consecutive days without rain. Authorities are urging stakeholders in agriculture, water resources, and health to prepare for drought, forest fires, and heat-related illnesses.

Iran Denies Trump's Claim, Says No Negotiations with US

Iran has refuted claims by US President Donald Trump that negotiations are underway, stating it is only in talks with Oman regarding a temporary safe route through the Strait of Hormuz. The Iranian Foreign Ministry spokesman said no discussions with the US are taking place, while Trump had asserted that a deal was being negotiated to avert further military action. Tensions remain high following a joint US-Israeli attack on Iran in February and the subsequent tightening of Iranian control over the strategic waterway.

Impact of Cyclone 94W: High Waves Alert in Tomini Bay on 5-6 August

The Gorontalo Regional Disaster Management Agency (BPBD) has issued a warning for moderate sea waves reaching 1.25 to 2.5 metres in the southern waters of Tomini Bay on 5-6 August 2026. The alert, based on a BMKG early warning, is linked to the influence of Tropical Cyclone Seed 94W in northern Indonesia, which is affecting wind patterns. Fishermen and marine transport operators have been urged to monitor weather updates and postpone activities if conditions deteriorate.

Deposits Become Mainstay for Third-Party Funds, Small Banks Raise Interest Rates

Indonesia's Financial Services Authority (OJK) has noted a slight increase in deposit interest rates among smaller banks, a move aligned with broader industry trends and the central bank's recent rate hikes. The rise comes as deposit products recorded the highest growth among third-party funds, expanding by 12.16% year-on-year in June 2026. Despite the rate adjustments, the OJK maintains that overall banking liquidity and capital adequacy remain strong and within safe thresholds.

Government to Revise Trade Minister Regulation as Rare Earth Elements Halt Nickel and Tin Exports

The Indonesian government is set to revise a trade regulation after exports of minerals like nickel and tin were blocked due to trace rare earth element (REE) content. Coordinating Minister Airlangga Hartarto stated that the revision of Trade Minister Regulation No. 6/2026 will establish acceptable chemical thresholds, as REEs are naturally occurring and cannot be fully separated. Exports have reportedly resumed pending the formal rule change to prevent disruption to the national economy.

Regency Government Accelerates Maintenance of Clean Water Supply Infrastructure

The Kepulauan Seribu Regency administration is accelerating the maintenance of Sea Water Reverse Osmosis (SWRO) and Brackish Water Reverse Osmosis (BWRO) facilities to ensure a stable clean water supply for the island chain. The effort involves collaboration with the city water company PAM JAYA and the Water Resources Sub-agency to monitor operations and replace ageing equipment. Officials acknowledge that water availability remains a primary challenge for the populated islands, which rely heavily on these desalination technologies.

Egypt, Peace Envoy Discuss Next Phase of Gaza Ceasefire

Egyptian Foreign Minister Badr Abdelatty and US Peace Envoy Nikolay Mladenov have discussed the next phase of the Gaza ceasefire plan. The talks focused on fulfilling commitments from the first phase, including humanitarian aid delivery and Israeli withdrawal. Egypt also stressed the need for a national committee to manage Gaza's transitional period.

Economist says Indonesia's trade surplus still overshadowed by energy imports

Indonesia's trade surplus for the first half of 2026 remains resilient at 3.58 billion US dollars, but a 450 million dollar deficit in June signals growing external pressure. Economist Yusuf Manilet warns that rising energy imports and a widening oil and gas deficit are the main risks, while the non-oil and gas surplus continues to narrow. He stresses the need for domestic industrial capacity building and export diversification to sustain the surplus amid global economic dynamics.

Indonesia Records Deflation in July 2026, BI Chief Cites Falling Food Prices

Indonesia experienced deflation of 0.14% month-on-month in July 2026, which the central bank attributes to a significant drop in volatile food prices. Bank Indonesia's acting governor stated this indicates the domestic economy is not overheating, with core inflation remaining stable at 2.76%. The annual inflation rate also eased to 2.88% from 3.34% in the previous month.

OCBC Strengthens Wealth Management Capabilities as Demand for Wealth Services Grows

PT Bank OCBC NISP Tbk is enhancing its wealth management services in response to growing public interest in investment, protection, and financial planning in Indonesia. The bank is integrating digital capabilities with investment and protection solutions, while also reinforcing security measures such as two-factor authentication and biometric features on its mobile platform. The move comes as OCBC secures several international awards, including the Euromoney Private Banking Award 2026 for succession planning.

Baznas Sends Emergency Aid to Fire Victims in Sukabumi

Indonesia's National Alms Agency (Baznas) has dispatched emergency relief to residents affected by a fire in Kasepuhan Ciptamulya, Sukabumi, West Java. The aid, comprising staple foods, bedding, and hygiene kits, aims to ease the burden on survivors during the emergency response period. Baznas emphasised its commitment to channelling zakat funds to provide immediate assistance and support post-disaster recovery.

Minister Tito Discusses Strengthening Digital Infrastructure at Dukcapil National Coordination Meeting

Home Affairs Minister Tito Karnavian outlined strategic steps to strengthen digital infrastructure for e-government services at the Dukcapil National Coordination Meeting. Key initiatives include integrating birth certificate issuance with health facilities and enhancing cybersecurity to ISO 27001 standards. The minister noted that President Prabowo has prioritised digital transformation, with population data serving as the foundation for the upcoming One Data Indonesia law.

Cuba Hit by Another National Blackout

Cuba experienced a nationwide power outage on Sunday, according to state electricity company Union Electrica (UNE). The blackout, which occurred at 10:43 p.m. local time, follows a partial grid failure the previous day and is attributed to difficulties in importing fuel and maintaining ageing power plants due to US sanctions. The country has faced repeated national blackouts since October 2024.

Heavy rain and overflowing rivers flood two jorong in Agam, West Sumatra

Two jorong in Nagari Sungai Batang, Agam Regency, West Sumatra, were inundated by floodwaters on Monday afternoon following heavy rainfall that caused local rivers to overflow. The Regional Disaster Management Agency reported that water levels reached 30 centimetres on roads in Jorong Kubu, while the government has urged residents to remain vigilant and evacuate to safer areas. Normalisation works are underway on the silted Sungai Batang Kumayo by the regional river authority to mitigate future flooding.

MPR Leaders Meet President Prabowo to Discuss Annual Session

Leaders of Indonesia's People's Consultative Assembly (MPR) met with President Prabowo Subianto at the Presidential Palace in Jakarta on Monday. The meeting was held to extend an invitation to the President for the MPR Annual Session scheduled for 14 August 2026, ahead of the 81st Independence Day anniversary. The gathering also served as a national consultation ahead of the independence commemoration.

Four Forest and Land Fire Hotspots Still Being Extinguished in Riau

Firefighting teams in Riau are continuing to battle four active forest and land fires across the Pelalawan and Indragiri Hulu regencies. Operations are being supported by weather modification technology to induce rain and prevent the fires from spreading further.

Japanese Yen Surges Sharply Against US Dollar

The Japanese yen strengthened significantly to the lower 155 range against the US dollar after Japan confirmed a coordinated currency intervention with the United States. Finance Minister Satsuki Katayama stated the move was to counter excessive volatility, marking the first joint action since the 2011 earthquake. The yen's surge prompted a sharp decline in Tokyo stocks amid concerns over corporate earnings prospects.

Thai PM Anutin Charnvirakul Arrives in Jakarta for State Visit

Thailand's Prime Minister Anutin Charnvirakul arrived in Jakarta on Monday for a two-day state visit, his first since taking office in September 2025. The visit marks the first by a Thai premier in 15 years and will include the launch of a strategic partnership roadmap with President Prabowo Subianto. The leaders are set to discuss cooperation in security, economic development, and socio-cultural affairs.

PAL Indonesia, BRIN partner to advance green shipyard transformation

State-owned shipbuilder PT PAL Indonesia and the National Research and Innovation Agency (BRIN) have launched a joint programme to accelerate the company's transition into a green shipyard. The partnership will focus on applied research, low-emission technologies, and human resource development to boost the competitiveness of Indonesia's maritime industry. Officials said the initiative aligns with President Prabowo Subianto's directive to strengthen the national shipbuilding ecosystem and meet rising global sustainability standards.

JCI Remains Sideways, Closes Stagnant at 6,234

The Jakarta Composite Index (JCI) ended Monday's trading session virtually unchanged, edging down just 0.03% to 6,234.49 amid cautious investor sentiment. Market participants are bracing for a data-heavy week, with attention focused on key domestic indicators including July inflation, manufacturing PMI, and trade balance figures. The stagnant close was accompanied by significant foreign net selling, particularly in major banking and energy stocks, while global markets were dampened by geopolitical uncertainty despite a potential de-escalation in the Middle East.

South Sumatra Optimistic Rice Production Will Rise Despite Strengthening El Niño

The Agriculture Office of South Sumatra projects rice production will increase to 2.885 million tonnes of milled dry grain by August 2026, up 108,000 tonnes from the previous year. Officials credit an accelerated planting strategy and the province's diverse geographical land types for mitigating the impact of the strengthening El Niño weather phenomenon. The government continues to map viable planting areas and prepare water pump assistance to maintain productivity during the dry season.

Sakuranesia Strengthens Indonesia-Japan-Russia Relations at JFC 2026

The Sakuranesia Foundation hosted the HEAL International Conference during Jember Fashion Carnaval 2026 to foster collaboration between Indonesia, Japan, and Russia in culture, education, and innovation. The event featured international artists and speakers who emphasised the importance of cross-border cooperation and human-centred innovation to address global challenges. The conference concluded with the signing of a Memorandum of Understanding to solidify the trilateral friendship.

PMI and Sukabumi City Water Company Distribute 60,000 Litres of Clean Water Amid Drought Crisis

The Indonesian Red Cross (PMI) and the regional water utility company in Sukabumi City have distributed nearly 60,000 litres of clean water to communities affected by the ongoing dry season. The humanitarian effort targets areas like Cikundul Hilir, where hundreds of families face water shortages, and includes public education on water conservation and hygiene. Authorities warn the crisis may worsen as the peak of the dry season, influenced by the El Niño phenomenon, approaches at the end of August.

Forest and Land Fires Spread Across Riau, Weather Modification Operations Underway

Forest and land fires (karhutla) have spread to four locations in Riau province, affecting Pelalawan and Indragiri Hulu regencies. Firefighting teams from Manggala Agni are working to extinguish the blazes, while the Meteorology, Climatology, and Geophysics Agency (BMKG) has initiated cloud seeding operations to prevent further spread.

South Korea's Youth Flock to Japan Amid Domestic Job Scarcity

A growing number of young South Koreans are seeking employment in Japan, driven by a tight domestic job market and Japan's acute labour shortage caused by its ageing population. Recruitment startups and government programmes are facilitating the trend, with data showing a 47% surge in South Koreans securing work in Japan in 2025. The shift presents both opportunities for bilateral ties and challenges due to differing workplace cultures regarding job mobility.

Indonesia, Cambodia Air Forces establish military cooperation

The Indonesian and Cambodian Air Forces have agreed to a new military education cooperation, allowing officers from both nations to attend command and staff schools in each other's countries. The agreement, reached during the 4th TNI AU–CAF Air Working Group in Jakarta, aims to improve human resources quality and strengthen bilateral defence ties.