Indonesian Political, Business & Finance News

Archive: 3 August 2026

Showing 1,001-1,050 of 1,519 articles

Passenger Recounts Jumping into the Sea as Fire Engulfed KM Mutiara Sentosa

A survivor of the KM Mutiara Sentosa 2 ferry fire, Bambang Susilo, described the harrowing moment he was forced to jump into the sea as flames spread across the deck. He recounted how he and his group of six were separated during the evacuation, with his driver, Sari Sukoco, still missing and feared dead. Bambang was at a hospital in Surabaya awaiting the identification of his relative's remains.

Paying with QRIS Incurring Additional Fees? Here's Bank Indonesia Central Sulawesi's Explanation

Bank Indonesia's Central Sulawesi office has clarified that consumers are not charged additional fees for QRIS transactions, with costs only applied to merchants at very low rates. The central bank highlighted that QRIS adoption boosts MSME competitiveness, improves financial transparency, and facilitates access to bank financing. Despite a 27% growth in users, limited telecommunications infrastructure remains a barrier in three regencies.

Government Reaffirms KUR Loans Up to Rp 100 Million Require No Additional Collateral

The Ministry of Micro, Small, and Medium Enterprises has clarified that KUR loans up to Rp 100 million do not require additional collateral, urging the public to report any violations. Officials noted they continue to receive complaints about illegal fees and collateral demands from applicants. The government is targeting Rp 290 trillion in KUR disbursement for 2026 to boost productive sectors and financial inclusion.

Ahead of Indonesia's 81st Independence Day, First Indonesian Mosque Worth Rp14.6 Billion Inaugurated in Canada

The Al-Ikhlas Centre, the first mosque initiated by the Indonesian community in Western Canada, has been officially inaugurated ahead of Indonesia's 81st Independence Day. The CAD 1.14 million (approximately Rp14.6 billion) project was realised through a collaborative waqf movement led by the Cinta Quran Foundation, involving over 200,000 donors. Officials hailed the mosque as a symbol of Indonesian gotong royong spirit and a bridge for friendship between Indonesia and Canada.

Drought Threatens Total Shutdown of Hungary's Paks Nuclear Plant

Hungarian Prime Minister Peter Magyar has warned that the Paks nuclear power plant, which supplies nearly half the country's electricity, faces its first total operational shutdown in 44 years due to critically low water levels in the Danube caused by extreme heat and drought. Strict safety regulations require the halt as the receding river impacts the availability of cooling water, with the last operating turbine expected to stop imminently. The government has implemented emergency measures, including voluntary and potential mandatory power consumption cuts for industry, to stabilise the national grid during a heatwave with temperatures exceeding 40°C.

Riau Police Chief Applauds Kombes Eko for Hoegeng Award, Hails Green Policing as National Inspiration

Riau Police Chief Irjen Herry Heryawan has praised Kombes Eko Budhi Purwono for receiving the 2026 Hoegeng Award in the 'Dedicated Police' category. The award recognises Eko's pioneering role in promoting 'Green Policing', a paradigm that integrates public security with environmental conservation. The initiative is now seen as a national model for building community awareness and involving youth in environmental protection.

MP urges faster rescue response for Sumenep ship fire victims

An Indonesian MP has called for a faster emergency response to maritime accidents following a ferry fire off the coast of Sumenep, East Java. Bambang Haryo Soekartono stressed that delays in rescuing passengers who have already evacuated into the sea could lead to fatalities from exhaustion or dehydration. He also urged a comprehensive evaluation of maritime disaster response systems to improve coordination and minimise casualties.

Myanmar's Aung San Suu Kyi meets Red Cross official, government says

Myanmar's detained former leader Aung San Suu Kyi has met with a Red Cross representative in Naypyitaw, according to the military government, which also released rare photographs of the 81-year-old. The meeting marks the first publicly acknowledged visit by an international official since her detention following the 2021 coup, amid ongoing concerns over her health and conditions of confinement. The development comes as the new military-backed administration faces continued international pressure over its treatment of the Nobel laureate and the broader political crisis in Myanmar.

House Leadership Meets 18 Labour Unions to Discuss Employment Bill

Deputy Speaker Cucun Ahmad Syamsurijal met with representatives from 18 labour confederations at the parliament complex in Jakarta to discuss the draft Employment Bill. The House leadership pledged to continue accommodating input from workers as the bill undergoes the formulation and harmonisation process. Labour representatives expressed hope that the final legislation would provide legal certainty and balanced protection for workers, employers, and all stakeholders.

KPK Questions Bengkulu City Public Works Chief After Seizing IDR 4 Billion

The Corruption Eradication Commission (KPK) has interrogated Noprisman, Head of the Public Works and Spatial Planning (PUPR) Office in Bengkulu City, following a search of his residence that uncovered IDR 4 billion in cash. The questioning is part of an expanding investigation into alleged corruption involving government officials in Bengkulu, which initially stemmed from a bribery case related to projects in Rejang Lebong Regency. The anti-graft agency is also scheduled to examine a local council member as it probes the flow of funds to other state officials in the region.

Soaring Exports Prompt Tegal Sarong Artisan to Offer Free Training for 2,500 Workers

A sarong manufacturer in Tegal, Central Java, is expanding free weaving training programmes to meet surging international demand, particularly from Africa and the Middle East. The initiative aims to recruit 2,500 workers by the end of the year, addressing a labour shortage that has left the industry unable to fulfil 80 per cent of export orders. The local government is collaborating to extend the training, which provides meals, transport, and a pathway to employment, boosting the regional economy.

The health benefits of consuming cucumber

Nutrition experts highlight the numerous health benefits of cucumber, noting its low-calorie, high-water, and high-fibre content. Research suggests cucumber may positively impact blood sugar, insulin, cholesterol, and blood pressure, while fermented pickles offer additional gut health benefits. However, experts caution that even fermented pickles can be high in salt.

Brown Planthopper Infestation Spreads in Pidie, Farmers Grow Anxious

A brown planthopper outbreak is expanding across rice paddies in Pidie Regency, Aceh, during the secondary planting season, causing significant damage. Farmers report the pest can destroy a quarter-hectare plot within a week, with the rapid spread suspected to be linked to the use of uncertified seed varieties. The infestation is raising concerns about crop failure as the pest targets rice plants aged 40 days up to harvest.

South Korea Hit by Record-Breaking Heatwave, Citizens Told to Stay Indoors

South Korea has recorded its highest temperature in modern history, with Yangsan city reaching 42.5°C, prompting a nationwide emergency warning. The government has urged citizens to cease all outdoor activities and seek shelter, as the extreme heat threatens public safety and strains power and water supplies. Meteorologists warn the heatwave could intensify depending on the path of Typhoon Dolphin, while climate scientists link the rising frequency of such events to human-induced climate change.

West Java Provincial Government Takes Over Teras Cihampelas, Targets New Look by October 2026

The West Java Provincial Government has officially assumed management of the Teras Cihampelas area from the Bandung City Government, marking a new phase in its urban regeneration. Governor Dedi Mulyadi stated the province will now directly handle technical development, aiming to restore the area's status as a creative industry and fashion hub. The revitalisation is expected to be completed by October 2026 and is intended to boost tourism, particularly with the planned resumption of flights at Husein Sastranegara Airport.

DPR Deputy Speaker Bahtra Absorbs Aspirations and Distributes Aid in Bombana

Wakil Ketua Komisi II DPR, Bahtra Banong, conducted a recess visit to three villages in Bombana, Southeast Sulawesi, to gather community aspirations and distribute essential food packages. Residents voiced needs regarding village infrastructure, irrigation improvements, education, and healthcare. Bahtra emphasised that the recess is a crucial moment to ensure national policies are rooted in the people's actual needs.

Hotel Association Reveals School Holidays Boosted Q2-2026 Occupancy Rates

The Indonesian Hotel and Restaurant Association (PHRI) reports that hotel occupancy rates in the second quarter of 2026 improved compared to the same period last year. The growth was primarily driven by the school holiday season, which saw occupancy in tourist destinations surge by 20-30% above regular levels. PHRI noted that while the increase is seasonal, the June holiday period significantly boosted demand following a 2% year-on-year rise in April and May.

BPS Confident Rice and Corn Production Will Rise in First Half of 2026, Here Are the Projections

Statistics Indonesia (BPS) reports that rice production in June 2026 is estimated to have risen by 7.02 per cent year-on-year, driven by an expansion in harvested area. Cumulative corn production for the first half of the year also saw a modest increase, despite a slight decline in the June harvest. The agency has also released its production potential forecasts for the July to September period.

KM Mutiara Sentosa Fire: No Alarm Sounded, Only Crew Shouts Warned Passengers

Survivors of the KM Mutiara Sentosa ferry fire have revealed that no emergency alarm was activated, with passengers only alerted by the shouts of crew members. The blaze, which originated from a truck on the vehicle deck, resulted in the loss of cargo including seven horses and an estimated financial loss of Rp300 million for one passenger. The incident has raised serious questions about safety protocols on board the vessel.

Chinese National Deported from Central Sulawesi for Unauthorised Unregistered Marriage

A Chinese national has been deported from Central Sulawesi after immigration officials discovered he had entered into an unregistered marriage without the required legal documentation. Li Zongkai was detained in Buol Regency and found to have married without a permit from the Chinese Embassy, a mandatory requirement for foreigners. The Palu Immigration Office enforced the deportation under the Immigration Law, reaffirming its commitment to upholding national sovereignty and legal order.

Indonesian President Prabowo to host Thai PM Charnvirakul in Jakarta

Thai Prime Minister Charnvirakul is making his first official visit to Jakarta since taking office, marking the first visit by a Thai premier in 15 years. The leaders will launch a five-year strategic partnership roadmap covering security, economic development, and socio-cultural cooperation. Discussions will also address trade, investment, food and energy security, and transnational crime within the ASEAN framework.

South Jakarta mobile vet clinic treats 226 animals from cats to sheep

A mobile veterinary clinic in South Jakarta has provided health services to 226 animals, predominantly cats, as of the end of July. The programme aims to improve access to animal healthcare across all sub-districts, though some areas remain hard to reach. High public enthusiasm has prompted officials to consider extending service hours in the most responsive neighbourhoods.

National Internship Programme Expected to Curb Youth Unemployment, Says Manpower Ministry

Indonesia's Manpower Ministry has stated that the National Internship Programme (MagangHub) aims to reduce youth unemployment by bridging the gap between academic qualifications and industry demands. The initiative provides fresh graduates with six months of practical work experience, mentoring, and professional networking opportunities. Data from previous iterations shows that around 30 per cent of participants secured job offers after completing the programme.

DPR Seeks Swift Implementation of Constitutional Court Ruling on Free Nutritious Meals Budget by 2027

A senior Indonesian lawmaker has urged the government to implement a Constitutional Court ruling that removes the Free Nutritious Meals (MBG) programme from the education budget by 2027, ahead of the 2028 deadline. The push aims to redirect education funds towards improving teacher quality, infrastructure, and human resources. The court previously ordered the programme's budget to be separated from the education sector in the state budget.

Ministry of Religious Affairs Strengthens Madrasah Transformation Through Revitalisation and Digitalisation

Minister of Religious Affairs Nasaruddin Umar has emphasised that madrasah transformation is being accelerated through infrastructure revitalisation, digitalisation, and a new 'Love-Based Curriculum'. The initiative also integrates an 'Ekoteologi' programme to instil environmental stewardship as part of character education. These efforts are framed as a strategic investment in human capital to prepare Indonesia for its 2045 Golden Indonesia vision.

Advocate Warns DPR: Asset Forfeiture Bill Must Not Become a Tool to Eliminate Political Opponents

Advocate Juniver Girsang has cautioned the House of Representatives (DPR) to ensure the Asset Forfeiture Bill does not become a weapon for political persecution. He urged lawmakers to clearly separate the functions of investigation, prosecution, and asset management to prevent conflicts of interest. Girsang proposed the establishment of an independent committee to manage seized assets, thereby bolstering public trust and accountability.

Kendari Mayor Ensures Integrated Public School Facilities Support Student Development

Kendari Mayor Siska Karina Imran has affirmed that the facilities at the newly established Sekolah Rakyat Terintegrasi (SRT) 2 are designed to optimally support student growth. The school, a collaboration between central and local government, aims to eliminate educational inequality and is prioritised for underprivileged children. The mayor also stressed the importance of a bullying-free environment while targeting the integration of around 1,000 out-of-school children in the city.

Government to Strengthen Exploration and Research as Long-Term Rare Earth Strategy

The Indonesian government, through the Presidential Staff Office, has outlined a long-term strategy to strengthen resource database exploration and research for rare earth metals (LTJ). The plan aims to build domestic processing capacity by enhancing expert capabilities and investing in separation and purification technologies. This move is intended to capture greater added value and reduce reliance on raw material exports.

Global IP Licensing Opens New Business Opportunities for Indonesian Creators

Indonesia's Creative Economy Ministry sees official licensing of global intellectual property as a sustainable model to unlock new business opportunities for local creators. The collaboration, highlighted by the HoYo FEST 2026 event, allows Indonesian artists to commercially monetise their work while strengthening the national creative ecosystem. The government hopes to expand such partnerships to accelerate industry growth and position Indonesia as a regional creative hub.

Indonesia's Crude Oil Imports Surge to US$16.16 Billion in First Half of 2026

Indonesia's crude oil imports reached US$16.16 billion in the first half of 2026, a dramatic increase from US$4.18 billion in the same period last year. The total oil and gas import bill rose 38.71% year-on-year to US$22 billion, with Nigeria, Angola, and Saudi Arabia as the top crude suppliers.

Avtur Price Drops, Ministry of Transport Evaluates Airfares and Sets Maximum Fuel Surcharge at 30 Percent

Indonesia's Ministry of Transport is reviewing airfare components following a decline in national avtur prices as of 1 August 2026. The evaluation has resulted in a new maximum fuel surcharge cap of 30 percent of the upper limit fare. The policy aims to balance ticket affordability for passengers with the operational sustainability of airlines.

Pregnant Wife of KM Sentosa 2 Passenger Awaits News in Makassar

Martina, who is six months pregnant, anxiously awaits direct contact from her husband Jamaludin, a truck driver who survived the KM Mutiara Sentosa 2 ferry fire off the coast of Madura. Although video footage confirmed his evacuation, she remains worried as communication has not been restored. The incident, which occurred on a Surabaya to Makassar route, resulted in five fatalities and 229 survivors, prompting a coordinated response from Indonesian search and rescue authorities.

Finance Minister Visits Waskita Karya's 'Sekolah Rakyat', Calls It Human Capital Investment for Golden Indonesia

Finance Minister Purbaya Yudhi Sadewa has stated that the 'Sekolah Rakyat' (People's Schools) programme is a crucial investment in human capital to support the Golden Indonesia 2045 vision. During a visit to the newly built integrated school in Surabaya, constructed by state-owned PT Waskita Karya, he emphasised the state budget's role in funding such social mobility projects. The school, built on 6.6 hectares with facilities rivalling expensive private institutions, is part of a broader Rp1.16 trillion contract to build similar schools across five districts in East Java.

Eight Figures Enter PBNU Chairmanship Race Ahead of Jombang Congress: Here Are Their Profiles

The race to lead Indonesia's largest Islamic organisation, Nahdlatul Ulama (NU), is intensifying ahead of its 35th Congress in Jombang. A recent survey highlights eight prominent candidates, including incumbent KH Yahya Cholil Staquf and several other influential clerics. The election will determine the direction of PBNU for the 2026-2031 period.

Indonesian Navy deploys warships and aircraft in ferry fire rescue off East Java

The Indonesian Navy dispatched two warships and a maritime patrol aircraft to rescue passengers from the KM Mutiara Sentosa II, which caught fire off the coast of Sumenep, East Java. The KRI Nala-363, which had just completed a joint exercise with a Chinese warship, rescued 30 survivors and recovered two bodies, while the KRI Bung Hatta-370 remained on station to secure the area and assist ongoing search operations. The rapid military response underscores the Fleet Command's readiness to mobilise assets for humanitarian assistance in the archipelago's busy shipping lanes.

West Java Government to Host Quran Recitation Competition After Garut Withdraws

The West Java provincial government has stepped in to directly host the 2027 Musabaqah Tilawatil Quran (MTQ) after Garut Regency withdrew due to financial constraints. The LPTQ praised the decision, highlighting the event's role in encouraging youth engagement with the Quran and fostering Islamic brotherhood. Governor Dedi Mulyadi has called for the competition, including the judging process, to be conducted with integrity.

Gianyar Art Dealer Faces One-Year Sentence for Trading Elephant Ivory

An art dealer in Gianyar, Bali, faces a one-year prison sentence and a fine for attempting to sell five pieces of elephant ivory. The prosecution argued that I Ketut Suteja was guilty of trading in protected animal parts, with the items priced between Rp 40 million and Rp 60 million. The case highlights ongoing illegal wildlife trade, with the supplier still under investigation.

Deputy House Speaker Distributes PIP Scholarships to Thousands of Students in East Lombok

Deputy Speaker of the Indonesian House of Representatives, Sari Yuliati, has distributed Indonesia Smart Programme (PIP) scholarships for 2026 to thousands of primary school students in East Lombok, West Nusa Tenggara. The initiative aims to improve educational quality and alleviate the financial burden on underprivileged families. The government is also seeking to secure further revitalisation funds and scholarship programmes for the region in the 2027 budget.

Rice Prices Climb, Reaching Rp 25,000 per Kg in South Kalimantan

Indonesia's Statistics Bureau (BPS) reported a rise in rice prices in July 2026, with premium rice at mills increasing by 0.44% month-on-month to an average of Rp 14,880 per kg. The highest price was recorded in South Kalimantan at Rp 25,000 per kg, while the lowest was in East Java at Rp 9,000 per kg.

Iran and Saudi Arabia Engage in Diplomatic Communication Amid Regional Conflict

Iran and Saudi Arabia have intensified diplomatic contacts as regional tensions escalate following Riyadh's involvement in military operations targeting pro-Iran militias in Iraq. Iranian Foreign Minister Abbas Araghchi held talks with senior Saudi and Pakistani officials, emphasising the need to strengthen regional security and stability. The diplomatic flurry reflects a concerted effort by regional powers to prevent the conflict from spiralling into a wider war.

EU to Build AI Gigafactories in Bid for Technological Sovereignty

The European Commission has announced a tender to raise over €30 billion for the construction of seven AI gigafactories, aiming to boost the bloc's computing capacity and reduce reliance on the US and China. The initiative, which involves chipmakers like AMD, Nvidia, and Qualcomm, seeks to provide European start-ups and industries with access to high-performance computing while adhering to EU data protection and ethical standards. However, the plan faces challenges including high energy costs and public concerns over environmental impact and job displacement.

Govt backs youth entrepreneurship to drive economic growth

The Indonesian government is prioritising youth entrepreneurship as a key driver of sustainable economic growth, with the Creative Economy Agency highlighting the need to increase the number of entrepreneurs to meet development targets. Initiatives like Prestasi Junior Indonesia have equipped over two million young people with business and financial skills since 2011, while its Student Company programme has helped students establish hundreds of micro-enterprises. The ministry aims to expand collaboration to help young innovators create jobs and commercialise local intellectual property on a global scale.

Government to Distribute 30 kg Rice Aid Starting 17 August 2026: Schedule and How to Check Recipient Status

The Indonesian government will commence the second phase of its 2026 rice aid programme on 17 August, providing 30 kilogrammes of rice to 33.24 million beneficiary families. The distribution, managed by the National Food Agency and Bulog, consolidates allocations for July, August, and September into a single delivery to enhance efficiency. Citizens can verify their eligibility through the Ministry of Social Affairs' official website or application.

PLN's Sabira Island Conservation Programme Wins National Award

PT PLN (Persero) has received national recognition for its conservation and community empowerment programme on Sabira Island in the Thousand Islands regency. The initiative, which integrates mangrove planting, coral reef transplantation, and digital access, won a Platinum Predicate at the Indonesia Green Awards 2026. The programme has also boosted the local economy by improving fuel efficiency for fishermen and supporting the development of local seafood processing businesses.

Foreign Investors Net Sell Rp363.53 Billion in First Session, Here Are the Stocks

Foreign investors recorded a net sell of Rp363.53 billion in the first trading session on Monday, as the Jakarta Composite Index moved flat. The selling pressure was primarily directed at major state-owned banks, with BBRI and BMRI experiencing the largest outflows, while Telkom Indonesia and BCA saw significant net buying.

July 2026 Deflation Reaches 0.14 Percent, These Are the Triggering Commodities

Indonesia experienced deflation of 0.14 percent month-to-month in July 2026, driven primarily by falling prices of food commodities such as shallots and chillies. The decline in the Consumer Price Index was also supported by cheaper gold jewellery, although annual inflation remained positive at 2.88 percent. Rising transport and education costs partially offset the deflationary pressure.

LPSK Welcomes Hoegeng Awards as a Model of Integrity for Police

The Witness and Victim Protection Agency (LPSK) has praised the Hoegeng Awards 2026 for promoting integrity within the Indonesian National Police. LPSK Deputy Chairperson Sri Nurherawati stated that the awards honour the legacy of former National Police Chief Hoegeng Iman Santoso and serve as an inspiration for law enforcement. She expressed hope that future awards will include more nominees who champion the rights of vulnerable groups.

Roy Suryo Files Fourth Pre-Trial Motion, Challenging Travel Ban

K.R.M.T. Roy Suryo has lodged a fourth pre-trial motion at the South Jakarta District Court, this time contesting a travel ban imposed on him. The former minister is a suspect in a case involving allegations of spreading false news about a fake diploma belonging to former President Joko Widodo. His legal team previously won a motion regarding his arrest and detention but lost a challenge against his suspect status.

Dozens of Darul Amanah Islamic Boarding School Students Visit Presidential Palace

Dozens of students and teachers from Darul Amanah Islamic Boarding School in Kendal, Central Java, visited the Presidential Palace in Jakarta as part of the 'Istana untuk Anak Sekolah' educational programme. The visit aimed to build national insight and character among the youth in preparation for the 2045 Golden Generation vision. School leaders emphasised that the direct experience of witnessing state symbols and learning about governance would strengthen the students' commitment to serving the nation.

June 2026 Exports Reach US$25.46 Billion, BPS Reveals Driving Commodities

Indonesia's total exports for June 2026 reached US$25.46 billion, marking an 8.84 percent year-on-year increase, primarily driven by non-oil and gas commodities. Mineral fuels, nickel, and animal and vegetable fats and oils were the standout performers, while agricultural exports declined. Despite the export growth, the country recorded a US$450 million trade deficit for the month due to a surge in imports.