Indonesian Political, Business & Finance News

Archive: 3 August 2026

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Indonesia records monthly deflation of 0.14 percent in July 2026: BPS

Indonesia experienced a monthly deflation of 0.14 percent in July 2026, driven primarily by falling food and jewellery prices, according to the Central Statistics Agency (BPS). The Consumer Price Index (CPI) declined from 111.89 in June to 111.73 in July, with volatile food prices dropping 1.68 percent. While food and personal care costs eased, inflation persisted in transport and education sectors due to fuel price comparisons and new school year fees.

KPK Supervisory Board and Officials Coordinate on Police Officer Named as Suspect in Pemalang Case

The Corruption Eradication Commission's (KPK) Supervisory Board has coordinated with structural officials regarding a police officer assigned to the anti-graft body who has been named a suspect in an alleged extortion case in Pemalang Regency. The board plans to examine the officer, Setya Budi Dias, to identify institutional weaknesses and improve future performance. However, the board is exercising caution regarding its ethical jurisdiction as the suspect is an active police officer.

Realise Your Dream Home at Danantara Housing Expo 2026 with BRI Mortgage Promotions

The Danantara Housing Expo 2026, a collaboration between Danantara Indonesia, Himbara, and property developers, will take place from 27-30 August 2026 at NICE PIK 2. The event aims to expand access to affordable housing by offering a range of properties alongside special mortgage promotions from BRI. Visitors can benefit from low down payments starting at 1%, competitive interest rates, and extended tenors of up to 30 years.

Batam Breaks Ground on Indonesia's First Integrated 'Sekolah Rakyat' Boarding School

Batam has commenced construction of the nation's first integrated 'Sekolah Rakyat' in Rempang, combining primary, secondary, and vocational education within a single boarding campus. The 18.5-hectare project, part of President Prabowo Subianto's national programme, aims to break the cycle of intergenerational poverty by providing free, high-quality education to underprivileged children. The school is expected to be completed by 2028 and will serve as a national model for equitable, technology-focused education.

Home Affairs Minister Warns Regional Heads Against Budget Waste: 'Don't Be Fooled by Subordinates'

Minister of Home Affairs Tito Karnavian has issued a stern warning to governors, regents, and mayors to implement budget efficiency, particularly for the 2027 fiscal year. He highlighted that wasteful spending often occurs in official travel, unnecessary meetings, and inflated maintenance costs. Tito urged regional leaders to be more critical and not to be misled by their subordinates when drafting work programmes.

Doctor: Beware of Typhoid Amid Weather Changes During the Dry Season

A medical specialist has warned the public about the increased risk of typhoid fever during the current dry season, linking it to declining environmental sanitation and food hygiene. The bacterial infection, caused by Salmonella typhi, can lead to severe complications such as intestinal perforation and sepsis if left untreated. The public is advised to seek immediate medical attention for persistent high fever and to maintain preventive measures including vaccination and proper handwashing.

High Fence at Jakarta's Kota Kasablanka Mall Suddenly Removed

A 2.5-metre-high iron fence surrounding Mal Kota Kasablanka in South Jakarta has been dismantled after drawing public attention and a request from the Governor. The fence, which had been up for nearly a week, was removed on Saturday night and replaced with traffic cones. The Jakarta administration had deemed the barrier excessive and assured the public of the capital's security.

Trade Ministry Secures Potential Exports Worth Rp1.87 Billion to Chile

Indonesia's Trade Ministry has facilitated business matching that yielded potential transactions worth US$104,000, or approximately Rp1.87 billion, for products including coffee, palm oil derivatives, and adult diapers. The initiative, led by the Indonesian Trade Promotion Centre in Santiago, aims to boost non-oil and gas exports to the Chilean market. The ministry noted that buyer interest in Indonesian goods, ranging from processed foods to personal care items, is steadily increasing.

Fuel and School Fees Remain High Amid Indonesia's July 2026 Deflation

Indonesia experienced deflation of 0.14% in July 2026, yet the prices of fuel and education remained stubbornly high. The transport sector saw inflation driven by Pertamax fuel prices, while rising primary school, kindergarten, and tutoring costs contributed to inflation in the education group.

Recorder Apologises After Filming and Creating Content of GIIAS Usher Without Consent

A man has publicly apologised after sparking outrage for secretly recording a female usher at the GIIAS 2026 automotive expo to create a 'how to approach women' video. The apology follows a statement from the House of Representatives' Commission III Chairman, who condemned the act as unethical and illegal, citing potential violations of copyright, electronic violence, and privacy laws. The legislator has urged the victim to file a police report and pledged to oversee the legal process.

Constitutional Court Justice Visits IKN, Sees Progress Firsthand and Offers Unexpected Comment

Constitutional Court Justice Arsul Sani visited the Nusantara Capital City (IKN) development site to review the progress of the judicial complex, including the new Constitutional Court building. The visit, which included a briefing from IKN Authority Head Basuki Hadimuljono, revealed that the physical construction of the court building has reached 12.41 percent. Sani expressed optimism that the project would be completed on schedule and voiced his belief that the new capital must succeed as a shared national project.

Jambi City Government's 'Very Good' PENKIN 2026 Rating Proves Commitment to Investment Climate

The Jambi City Government has achieved a 'Very Good' rating in the 2026 PENKIN evaluation, scoring 86.622, a significant increase from the previous year. Mayor Maulana stated that this achievement reflects the city's commitment to fast, transparent, and accountable public services, which are crucial for building investor trust. The score surpassed those of several other major Indonesian cities, highlighting Jambi's improved competitiveness in licensing and business facilitation.

Indonesia Records 0.14% (mtm) Deflation in July, Driven by Falling Food and Gold Prices

Indonesia experienced a monthly deflation of 0.14% in July 2026, according to the Central Statistics Agency (BPS). The decline in the consumer price index was primarily driven by lower prices in the food, beverage, and tobacco category, notably for shallots, red chillies, and eggs. Deflation was also supported by a decrease in the price of gold jewellery within the personal care and other services segment.

Indonesia Records US$450 Million Trade Deficit in June 2026

Indonesia's trade balance slipped into a US$450 million deficit in June 2026, driven by a sharp 34.27% year-on-year surge in imports that outpaced export growth. The deficit was significantly smaller than the US$1.61 billion recorded in May, with non-oil and gas exports such as mineral fuels and nickel showing strong performance.

Advocate Proposes Asset Forfeiture Bill Set Standards for Linking Assets to Crime

A senior Indonesian advocate has proposed that the upcoming Asset Forfeiture Bill include clear evidentiary standards to substantiate the link between assets and criminal activity. Maqdir Ismail of Ikadin stressed that confiscation should be based on analysis, not mere suspicion, and called for fair judicial processes to protect owners' rights. He also suggested limiting the use of presumption to serious crimes and incorporating safeguards such as time limits and court confirmation for asset freezes.

Chronology of Illegal Dumpsite Fire in East Jakarta That Claimed a Firefighter's Life

A fire at an illegal dumpsite in Kramat Jati, East Jakarta, led to the death of a firefighter who suffered a heart attack during the operation. The blaze, reported on Saturday morning, required 10 fire engines and 50 personnel to control. The deceased, Andriyono, was a team leader from the Cipayung fire sector who collapsed while connecting a water hose.

KPK Supervisory Board to Immediately Examine Administrative Staff Member Named as Extortion Suspect

The Supervisory Board of Indonesia's Corruption Eradication Commission (KPK) is set to question Setya Budi Dias Oktavianto, a police officer serving as an administrative staff member, who has been named a suspect in an alleged extortion case. The board seeks comprehensive information from the suspect to evaluate internal weaknesses and prevent future incidents. The case involves the alleged extortion linked to the Pemalang Regency Government, with four suspects already detained.

Anticipating Forest and Land Fires, Banten Forms Integrated Task Force to Secure Landfill Areas

Banten Police and the provincial government have established an Integrated Task Force to guard against forest and land fires during the peak of the dry season, with a particular focus on securing landfill sites. The task force will concentrate on locations such as Jatiwaringin, Bagendung, and Cilowong, where accumulated methane gas poses a significant fire risk. Authorities are also intensifying patrols and public education to prevent illegal land clearing by burning, warning of criminal penalties exceeding five years.

Facts about Indonesia's Shadow Cabinet: Here is the List of 15 Ministers

Indonesia's newly formed Shadow Cabinet, comprising 15 ministers from civil society and academia, has been launched as a check-and-balance mechanism against President Prabowo Subianto's administration. Initiated by a cross-sector coalition including constitutional law expert Feri Amsari, the body aims to provide evidence-based policy alternatives and credible oversight of the current government. The shadow cabinet plans to fill a perceived gap in the opposition and serve as a media reference, with each member overseeing multiple ministries in the official Red and White Cabinet.

At 80, Brazil's President Lula Seeks Fourth Term

Brazilian President Luiz Inacio Lula da Silva has announced his candidacy for a fourth term in the October elections, declaring himself in 'prime condition' at the age of 80. The veteran leftist leader is positioning his campaign as a bulwark against the global rise of the far-right, amid mounting diplomatic and trade tensions with the United States under President Donald Trump. Lula, who staged a dramatic political comeback after corruption convictions were annulled, will face Flavio Bolsonaro, the son of his right-wing rival Jair Bolsonaro.

Imports Surge to US$25.91 Billion, Here is the List of Goods Entering Indonesia in June 2026

Indonesia's import value soared to US$25.91 billion in June 2026, marking a 34.27% year-on-year increase. The surge was driven primarily by a doubling of oil and gas imports, alongside significant growth in raw materials and capital goods. The data indicates robust annual growth across all categories of goods by usage.

Gayus Lumbuun: Resolving Jokowi's Diploma Case Through Administrative Court Is Highly Appropriate

Criminal law expert Professor Gayus Lumbuun has stated that resolving the alleged fake diploma case of Indonesia's 7th President Joko Widodo through the State Administrative Court (PTUN) is the correct legal avenue. He argued that verifying the authenticity of a state-ratified document falls under administrative law, not criminal proceedings. The Jakarta PTUN recently rejected an objection from Gadjah Mada University against a ruling that requires the disclosure of Jokowi's academic documents.

National Police Traffic Corps and Jasa Marga's Strategy for Christmas and New Year, Including ODOL Enforcement

The Indonesian National Police Traffic Corps (Korlantas Polri) and state-owned toll road operator Jasa Marga are coordinating strategies to manage traffic during the upcoming Christmas and New Year holidays. Discussions also focused on the planned implementation of the Zero ODOL (Over Dimension Over Loading) policy for trucks, with police emphasising a balanced approach that addresses upstream economic factors. The meeting further covered the integration of operational technology and the readiness of new toll road sections in Central Java, Yogyakarta, and East Java to ease congestion.

Juniver Girsang Warns Asset Forfeiture Bill Could Become Tool to Eliminate Political Opponents

Lawyer Juniver Girsang has cautioned the House of Representatives' Commission III against allowing the Asset Forfeiture Bill to be weaponised against political rivals. He cited a personal case where a client's assets worth Rp 10 trillion were seized over an alleged loss of only Rp 200 billion. Girsang also claimed no country has successfully implemented such a law without it becoming a biased tool of power.

Minister Dudy Reviews Handling of KMP Mutiara Fire Victims in Sumenep

Transport Minister Dudy Purwagandhi visited Sumenep to oversee the evacuation and treatment of victims from the KMP Mutiara Sentosa II ferry fire. He expressed condolences and praised the local government's rapid response. Nine victims arrived at Kalianget Port, with four referred to hospital and five sent to a central command post in Surabaya.

Shock as Pemalang Junior High Student Dies, Allegedly Bullied; Autopsy Underway

A junior high school student in Pemalang, Central Java, has died amid allegations of bullying, prompting a police investigation and an autopsy. The victim, identified as Ahmad Al Fian from SMP Negeri 4 Randudongkal, passed away on Sunday evening after receiving medical treatment. Authorities are currently investigating the cause of death as the case gains widespread attention on social media.

KLH Ready to Assist SPPG MBG in Implementing Circular Economy

The Ministry of Environment is prepared to provide assistance to the Free Nutritious Meal Programme's service units to ensure circular economy principles are adopted. The initiative aims to prevent production and food waste from harming the environment by converting it into economically and ecologically valuable resources. A pilot project in Halim has already demonstrated success by using treated wastewater to irrigate rice paddies, enabling three harvests a year.

Chinese-Style Rural Development: Ancient Village Transformed into Mega Resort, Farming Under Solar Panels

A rural village in Guangdong, China, has been transformed into a luxury hot spring resort through a major investment project, integrating tourism with local agriculture. The development, which converted old farmhouses and farmland into a 130-hectare resort, aims to revitalise the countryside by blending ancient architecture with modern hospitality. The initiative is part of a broader showcase of China's rural development model ahead of the APEC 2026 summit.

Immigration Investigates Alleged Violations by Chinese Business Owners in Nusa Penida

The Klungkung Immigration Office is investigating two Chinese nationals for suspected visa violations after an inspection found them working as dive instructors on business visas. The local regent has threatened to close foreign-owned businesses that fail to complete mandatory permits, while authorities also focus on uncovering illegal workers operating on tourist visas.

KPK Supervisory Board to Examine Staff Member Named Suspect in Pemalang Regent Case

The Corruption Eradication Commission's (KPK) Supervisory Board will examine one of its administrative staff members, Setya Budi Dias Oktavianto, who has been named a suspect in a corruption case involving the Pemalang Regent. The board is assessing whether the case falls under ethical violations and whether the staff member, who is a police officer, should be returned to the National Police for disciplinary proceedings. The internal investigation aims to identify procedural weaknesses after the staff member allegedly leaked information used by his father to extort the regent.

Traders Support Demolition of Teras Cihampelas, Complain Lack of Parking Deters Visitors

Traders along Jalan Cihampelas in Bandung have expressed support for the West Java provincial government's plan to demolish the Teras Cihampelas structure. They report that visitor numbers and sales turnover have declined sharply since the Covid-19 pandemic, exacerbated by the closure of access to the terrace following an indecency incident. The traders cite a severe lack of parking facilities as the primary reason customers avoid the area, including the nearby Cihampelas Walk shopping centre.

Top 10 Districts Receiving the Largest Palm Oil Revenue Sharing Funds Are All Outside Java

Districts in Kalimantan and Sumatra dominate the list of largest recipients of palm oil revenue sharing funds (DBH Sawit) for the 2025 fiscal year, with Ketapang Regency receiving the highest allocation of Rp18.13 billion. The distribution pattern reflects the concentration of national palm oil production in these two islands, rather than provincial administrative boundaries. The DBH Sawit is a fiscal transfer mechanism that returns a portion of state revenue from palm oil export levies to producing regions.

Family Values Key to Business Sustainability, Says DBS Insights Forum

The DBS Insights Forum 2026 highlighted the importance of family values and purposeful legacy in building sustainable businesses. DoctorTool co-founder Elisa Yoshigoe Wijaya shared how her health-tech company addresses healthcare access gaps in Indonesia, supported by a DBS Foundation grant. DBS Indonesia also reaffirmed its commitment to empowering social enterprises that deliver measurable social impact.

Indonesia's Trade Balance Records US$450 Million Deficit in June, Oil a Major Burden

Indonesia's trade balance slipped into a US$450 million deficit in June 2026, driven by a significant shortfall in the oil and gas sector. The non-oil and gas segment remained robust, posting a surplus of US$3.04 billion, largely from vegetable oils and mineral fuels. Cumulatively, the country still maintains a trade surplus for the first half of the year, supported by strong non-oil and gas exports.

Thousands of Migrants Storm Spain; Iranian Embassy Calls It a 'Special Operation' Orchestrated by US-Israel

The Iranian Embassy in Nairobi has alleged that a deadly migrant surge into the Spanish enclave of Ceuta, which killed at least 86 people, was a 'special operation' orchestrated by the United States and Israel to destabilise Spain. The accusations come amid heightened tensions between Madrid and Washington and Tel Aviv over the Gaza conflict and Spain's recognition of Palestine. Spanish and international right-wing figures have also weighed in, with some echoing claims of foreign orchestration.

Ministry says zero-tariff tuna access needs stronger upstream sector

Indonesia's fisheries ministry has welcomed the zero-tariff access for tuna and skipjack exports to Japan under the IJEPA, effective August 2026, but stresses that competitiveness hinges on strengthening the upstream sector. Efforts are focused on training fishers in responsible practices and reinforcing sustainable stock management through the Measured Fishing policy. Processed tuna and skipjack exports covered by the new tariff already rose 21 percent to US$76.41 million in 2025.

Bekasi Regent Ade Kuswara Sentenced to 7 Years, Father 'Abah Kunang' Gets 4 Years

The non-active Regent of Bekasi, Ade Kuswara, has been sentenced to seven years in prison for accepting bribes related to the procurement of government projects. His father, HM Kunang, received a four-year sentence for his involvement in the same corruption case. The bribes, totalling Rp12.4 billion, were paid by a businessman to secure project packages in the 2025 regional budget.

Roy Suryo Files Fourth Pre-Trial Motion, This Time Over Travel Ban

Former minister Roy Suryo has filed a fourth pre-trial motion, this time challenging a travel ban imposed on him, following a series of legal battles with the Metro Jaya Police. The latest motion was registered after a hearing for his third pre-trial case, which seeks compensation for an arrest and detention previously ruled unlawful. The South Jakarta District Court is scheduled to begin hearing the new motion on Friday, while a verdict in the second pre-trial case is expected on Thursday.

From Technological Revolution to Sovereignty Revolution

The digital economy is shifting from data ownership to decision architecture, where algorithmic judgement becomes the primary source of economic power. This article introduces the concept of 'Decision Sovereignty', arguing that the state's core challenge is maintaining constitutional legitimacy over decisions increasingly shaped by opaque AI systems. It posits that strong institutions, not just technology, are the essential infrastructure for preserving national sovereignty in the algorithmic age.

KPK Supervisory Board Receives 14 Ethics Complaints Against Employees Since January 2026, Two Sanctioned

The Corruption Eradication Commission's (KPK) Supervisory Board has received 14 ethics complaints against its employees since the start of 2026. Two cases have been adjudicated, resulting in one heavy sanction and one moderate sanction. The board is currently analysing eight complaints and clarifying five others.

Firefighter Dies While Battling Blaze at Illegal Dumpsite in East Jakarta

A Jakarta firefighter, Andriyono, died after suffering a heart attack during a prolonged operation to extinguish a large fire at an illegal waste disposal site in Kramat Jati, East Jakarta. The provincial government has expressed its condolences and confirmed the deceased had a history of heart disease. Authorities have also announced plans to clear the site and tighten enforcement against illegal dumping, with investigations set to begin.

Jakarta Government: Dry Season Causes Marunda Dock to Recede, Fishing Boats Run Aground

The prolonged dry season has caused water levels to recede at Marunda Dock in North Jakarta, leaving several fishing boats stranded. The local government plans to coordinate dredging efforts to restore safe access for fishermen, while noting that crab catches have remained relatively stable despite the conditions.

BMK 1957: Cadre Development Key to Golden Indonesia 2045

The Fifth Grand Assembly of Barisan Muda Kosgoro 1957 (BMK 1957) is scheduled for August 2026 in Semarang, focusing on strengthening cadre development and organisational consolidation. Secretary-General Almanzo Bonara emphasised that the forum must ensure the continuity of producing quality cadres capable of contributing to national development. The assembly aims to translate its outcomes into concrete organisational action, aligning with the broader goal of achieving the Golden Indonesia 2045 vision.

Coal and CPO Rescue Indonesia's Exports in June 2026

Indonesia's exports rose 8.84% year-on-year in June 2026 to US$25.46 billion, driven by surging non-oil and gas commodities. Mineral fuels and nickel saw significant value increases, while agricultural exports declined. Cumulative exports for the first half of 2026 reached US$140.81 billion, a 4.13% rise from the same period last year.

Indonesia's Trade Balance Records US$450 Million Deficit in June 2026

Indonesia's trade balance slipped into a US$450 million deficit in June 2026, according to the Central Statistics Agency (BPS). The deficit, driven by imports of US$25.91 billion against exports of US$25.46 billion, was narrower than market expectations. This follows the first monthly deficit since April 2020 recorded in May, though the country maintains a cumulative surplus for the year.

Primary and Kindergarten School Fees Drive Core Inflation 0.14% in July 2026

Indonesia's core inflation rose 0.14% month-to-month in July 2026, primarily driven by primary school and kindergarten fees during the new academic year. Overall, the country experienced deflation of 0.14% due to a significant drop in volatile food prices, particularly for shallots and chillies.

BPS Reports 0.14 Percent Deflation in July 2026 Driven by Food, Beverages, and Tobacco

Statistics Indonesia (BPS) announced a month-to-month deflation of 0.14 percent in July 2026. The deflation was primarily driven by a 0.89 percent decline in the food, beverages, and tobacco category, with shallots, chillies, and eggs being the main contributing commodities.

Roy Suryo Pretrial Enters Evidence Phase, Polda Metro Jaya Presents Criminal Law Expert

The South Jakarta District Court held the third pretrial hearing for Roy Suryo, moving into the evidentiary phase. Polda Metro Jaya presented a criminal law expert as the termohon's witness in response to Suryo's claim for Rp206 million in compensation for an unlawful arrest and detention. The judge scheduled the conclusion of the hearing for the following day.

Four Road Project Workers Killed in OPM Attack in Papua

Four workers, including one indigenous Papuan, were killed in a shooting attack on a road construction project in Tolikara, Papua Pegunungan. The Indonesian military has confirmed the attack was carried out by the Free Papua Organisation (OPM) under the leadership of Botak Wanimbo. Authorities condemned the violence, stating it undermines civilian safety and hampers development efforts in the region.

BPS Announces Indonesia's Exports at US$25.46 Billion in June 2026, Up 8.84%

Indonesia's export value reached US$25.46 billion in June 2026, marking an 8.84% year-on-year increase, according to the Central Statistics Agency (BPS). Non-oil and gas exports drove the growth, rising 9.46% to US$24.39 billion, while oil and gas exports declined 3.78% to US$1.07 billion. Cumulative exports for the first half of 2026 totalled US$140.81 billion, a 4.13% rise compared to the same period last year.