Indonesian Political, Business & Finance News

Archive: 5 August 2026

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Visit PLN Booth at GIIAS 2026, Enjoy 50% Power Upgrade Promo

State electricity company PLN is offering a 50% discount on power upgrades up to 7,700 VA at the GIIAS 2026 auto show to support home EV charging. The promotion is part of PLN's broader effort to strengthen the electric vehicle ecosystem, which has seen home charging installations reach 92,058 units. The government reported that EV sales grew 69.4% in the first half of 2026, with one in four new passenger cars now electrified.

Geothermal Industry Urges Government to Revise Presidential Regulation to Boost Investment

Indonesian geothermal industry players are calling for a revision of Presidential Regulation No. 112/2022 to introduce a feed-in tariff mechanism. They argue the current scheme, which relies on price negotiations and only sets a selling price ceiling, fails to provide the investment certainty needed for capital-intensive exploration. A clear tariff formula is seen as crucial to accelerating project development and supporting the nation's renewable energy targets.

Central Government Allocates Rp22.5 T in Direct Aid to Regions Solely for Civil Servant Salaries

The Indonesian central government is providing Rp22.5 trillion in direct assistance to regional administrations, specifically to cover the salaries of regional civil servants (ASN) and contract-based government employees (PPPK). The funds, sourced from the State General Treasurer's budget, are a stopgap measure for 497 regions facing fiscal shortfalls after transfer cuts in 2026, ahead of a planned top-up to general allocation funds in 2027. Officials stated the aid is intended to prevent any potential layoffs of regional government employees.

Jakarta's economy remains resilient amid geopolitical pressures, says Governor

Jakarta Governor Pramono Anung has stated that the capital's economy remains robust despite global geopolitical tensions, with annual growth reaching 5.52% in the second quarter of 2026. The city contributed Rp1,050.02 trillion to the national gross regional domestic product, while annual inflation was recorded at 2.5%, lower than the national figure. Wholesale and retail trade remained the largest sector, contributing 18.24% to Jakarta's economy.

Police to Investigate Cause of Fire at Cikini Building

Jakarta police will conduct a crime scene investigation to determine the cause of a fire that broke out in a five-storey building in Cikini, Central Jakarta. Ten construction workers were safely evacuated, and no casualties were reported. The fire is believed to have started on the ground floor, where flammable materials such as plywood and timber were stored.

Bappenas: Indonesia Has Strong Capital to Develop Tokenisation Ecosystem

Indonesia's Minister for National Development Planning, Rachmat Pambudy, stated the country possesses strong fundamentals to develop a real-world asset tokenisation ecosystem. He highlighted high internet penetration and a rapidly growing digital economy as key drivers. The government views blockchain-based tokenisation as a strategic innovation to boost liquidity, broaden investment access, and accelerate economic transformation.

Indonesia's Q2 GDP Expands 5.29% on Strong Consumption

Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, driven primarily by robust household consumption and investment. All expenditure components recorded positive growth, with government consumption surging nearly 16%, while the mining sector was the sole industry to contract due to lower mineral output. The data underscores resilient domestic demand, with notable strength in accommodation, food services, and e-commerce transactions.

Minister Denies Involving Military and Police in Tax Collection, Says 'They Wouldn't Understand'

Finance Minister Purbaya Yudhi Sadewa has firmly denied that the government is using military and police personnel to collect taxes from the public. He stated that Babinsa and Bhabinkamtibmas officers lack the necessary understanding of taxation procedures. The clarification follows public uproar over a circular that the tax office says merely formalised inter-agency coordination for security support, not direct tax enforcement.

KAI Strengthens Circular Economy by Managing 2,997.99 Tonnes of Waste Through Reuse and Recycling

State railway operator PT Kereta Api Indonesia (KAI) managed 2,997.99 tonnes of waste through reuse and recycling schemes in 2025, a 36.31 percent increase from the previous year. The initiative focuses on repurposing ferrous materials from decommissioned rolling stock, aligning with national circular economy roadmaps. The company emphasises that extending the lifecycle of materials supports industrial supply chains and reduces reliance on primary resource extraction.

Indonesia delays e-commerce seller tax to protect purchasing power

The Indonesian government has postponed the implementation of a 0.5 percent income tax on e-commerce sellers, citing the need for improved economic conditions and stronger consumer spending. The policy, which was due to take effect on August 1, would have required major platforms like Tokopedia and Shopee to collect the levy on behalf of merchants with annual turnover exceeding Rp500 million. Officials have not set a new date for the scheme, framing the delay as a measure to safeguard purchasing power during the ongoing recovery.

Accounts Drained Even Without Internet Connection, Rp 1.59 Trillion Vanish

A cyber attack exploiting a software vulnerability in Coldcard hardware wallets has led to the theft of cryptocurrency worth approximately US$88.6 million (Rp1.59 trillion). The manufacturer's CEO admitted that AI-assisted code review is enabling threat actors to discover hidden bugs faster than experienced security experts. Users have been urged to update their firmware and transfer assets to new wallets as analysts warn of a potential fourth wave of attacks.

Bank Mantap Partners with IPB University to Offer Student Internships

PT Bank Mandiri Taspen (Bank Mantap) has entered into a partnership with IPB University to provide internship opportunities and an Officer Development Program for students. The collaboration aims to bridge the gap between academia and the banking industry's workforce needs. It will also see Bank Mantap providing banking services, including payroll management, for the university's academic community.

Permanent Sekolah Rakyat in Banjarbaru to Commence Operations on 15 August

The Ministry of Social Affairs has scheduled the permanent Sekolah Rakyat in Banjarbaru, South Kalimantan, to begin operating on 15 August 2026. The initial phase will utilise the primary school complex for student orientation, as construction and safety improvements continue across the wider campus. Officials are prioritising the completion of dormitory safety features and mitigating environmental hazards before full operations commence.

Deputy Governor Fadhlullah: Cement Scarcity in Aceh Slows Hydrometeorological Disaster Recovery

The Aceh provincial government has appealed to the central government to address a critical cement shortage that has driven prices up by over 70% and is hampering post-disaster rehabilitation. Deputy Governor Fadhlullah reported a daily deficit of approximately 500 tonnes, causing market prices to surge from Rp70,000 to Rp120,000 per sack. The administration has requested intervention from the Home Affairs Minister and the Danantara sovereign wealth fund to expedite supply and stabilise the market.

PT JIEP Builds Inclusive Industrial Estate with Mosque Construction

State-owned PT Jakarta Industrial Estate Pulogadung (JIEP) has inaugurated the Masjid JIEP Jayakarta, a 4,000-capacity mosque, as part of its 53rd anniversary. The facility aims to serve not only employees and tenants but also the surrounding community, reinforcing the company's commitment to social and spiritual development. The project reflects a broader vision of creating an industrial area that balances economic growth with tangible social benefits.

AICIS+ 2026 to focus on research for Indonesia's development

The Ministry of Religious Affairs has announced that the 2026 Annual International Conference on Islamic Science and Society (AICIS+) will shift its focus towards empirical research that directly supports national development. The conference, hosted by Syekh Nurjati State Islamic Cyber University, aims to integrate STEM fields with Islamic studies and produce policy recommendations alongside academic publications. It will also encourage participation from public universities to foster cross-disciplinary collaboration on strategic issues such as healthcare and digital transformation.

Fire Engulfs Building in Cikini, Firefighters Suspect Blaze Started on Ground Floor

A fire broke out in a building under construction or renovation in Cikini, Central Jakarta, on Wednesday afternoon. Firefighters suspect the blaze originated on the ground floor, where flammable materials such as plywood and wood were stored. Authorities deployed 70 personnel and 18 fire engines to tackle the incident, with the cause of the fire still under investigation.

ScaleOcean Offers Long-Term ERP Solutions to Overcome Corporate Operational Bottlenecks

ScaleOcean has introduced a customised Enterprise Resource Planning (ERP) system designed as a long-term strategic investment, claiming it can remain relevant for up to 20 years without requiring periodic re-implementation. The company argues that many decision-makers fail to recognise that their legacy systems have become operational bottlenecks rather than enablers. The solution is tailored to specific industry challenges, from manufacturing and construction to distribution and logistics, and is supported by a consultation service to help firms view ERP as a strategic asset.

MPR Deputy Speaker Urges Universities to Take Active Role in Solving Plastic Waste Crisis

Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno has called on universities to become strategic partners in tackling Indonesia's plastic waste crisis through science-based policy. He stressed the importance of implementing Extended Producer Responsibility (EPR) to shift the burden of waste management from local governments to producers. Soeparno highlighted that collaboration between government, academia, and industry is essential to address the country's annual 56 million tonnes of waste.

OJK Mandates Pindar to Submit Complete Funding Transaction Data

Indonesia's Financial Services Authority (OJK) has issued a new regulation requiring online lending providers (pindar) to submit comprehensive and timely funding transaction data. The move aims to strengthen data infrastructure for more effective, risk-based supervision of the digital finance industry. The regulation also includes provisions for data protection, internal audits, and administrative sanctions for non-compliance.

Cirebon Government Optimises 112 Emergency Service During Dry Season

The Cirebon city government is enhancing its Cirebon Siaga 112 emergency service to accelerate responses to land fires and other disasters during the 2026 dry season. Deputy Mayor Siti Farida Rosmawati urged residents to report any signs of fire immediately, particularly in drought-prone areas like Argasunya. The city has declared a drought and land fire emergency status from 1 July to 30 September 2026.

Bali's Economy Grows 5.78 Percent, but Transport Sector Declines

Bali's economy expanded by 5.78 percent year-on-year in the second quarter of 2026, driven by broad-based growth across most sectors. However, the transportation and warehousing sector was the sole industry to contract, with officials pointing to a significant drop in air travel. The accommodation and food services sector remained the largest contributor to the island's economy.

Bantul Fire Truck Forced to Detour Due to Low Independence Day Arch

A fire truck in Bantul, Yogyakarta, was forced to take a 200-metre detour after a low-hanging archway erected for Indonesia's 81st Independence Day celebrations blocked its path. The vehicle was en route to a fire safety socialisation event at a local Islamic boarding school, not an emergency. Officials have urged residents to ensure celebratory decorations maintain a minimum height of three metres to allow emergency vehicles unimpeded access.

Police Investigate Hoax Video Related to Demonstrations

The Indonesian National Police are investigating a hoax video circulating on social media that falsely depicts a current demonstration. The video is actually footage from a previous year's event, and authorities have warned the public against spreading misinformation. Officials have stated that those who disseminate such false information could face criminal sanctions.

Home Affairs Minister Tito Urges 16 Agencies to Immediately Execute Post-Disaster Programmes in Sumatra

Home Affairs Minister Tito Karnavian has called on 16 ministries and agencies to swiftly implement their allocated rehabilitation and reconstruction programmes for Sumatra. The minister, who chairs the task force for the post-disaster recovery, confirmed that these bodies have received their budget allocations for the multi-year effort. He also urged regional governments to utilise existing transfer funds for parallel mitigation work while awaiting the full rollout of central government projects.

Former Village Head in Southwest Sumba Named Corruption Suspect Over Village Funds

Marthen Nuni Mada, the former head of Nangga Mutu Village in Southwest Sumba, has been named a suspect in the alleged corruption of village funds from the 2019 fiscal year. An audit by the regional inspectorate found that several programmes were not implemented according to the village budget, resulting in a state loss of over Rp 605 million. The suspect was detained after failing to respond to multiple police summonses.

Indonesia and Saudi Arabia Strengthen Investment Promotion and Facilitation Cooperation

Indonesia and Saudi Arabia have signed a Memorandum of Understanding to bolster cooperation in promoting and facilitating direct investment. The agreement aims to leverage the economic transformation agendas of both nations, Saudi Arabia's Vision 2030 and Indonesia's industrialisation and infrastructure drive. The partnership will focus on information exchange, joint promotions, and institutional coordination to generate new investment and create jobs.

Purbaya Drops Hints on 'Very Strong' El Niño Stimulus Package

Finance Minister Purbaya Yudhi Sadewa has revealed that the government is preparing a stimulus package to counter the effects of a strengthening El Niño, which is forecast to become 'very strong' by August-September 2026. The details and budget are still under discussion, but the minister confirmed that President Prabowo Subianto has ordered the preparation of protective programmes. The package will be implemented as soon as inter-ministerial discussions are concluded.

Depok Mutilation Suspect Had Only Been Renting with Another Man for 7 Months

Saepul, the 26-year-old suspect in the mutilation of Kunaefi in Depok, had only been renting a property with another man, identified as JJ, for seven months. The local neighbourhood chief revealed the pair ran a small food business together and that the suspect had a reserved personality. Police are still investigating the motive for the murder, but have indicated the suspect is believed to be a homosexual and had stolen the victim's motorcycle and belongings.

Ciamis Woman Faces 12 Years in Prison for Allegedly Spreading Hoax About Protests

A 45-year-old woman from Ciamis, West Java, has been arrested for allegedly spreading hoax content inciting demonstrations ahead of Indonesia's Independence Day. She faces multiple charges under the Electronic Information and Transactions Law and the new Criminal Code, carrying a maximum sentence of 12 years. Police have urged the public to verify information before sharing it online.

Apindo introduces AUM programme to sharpen students' entrepreneurial spirit

The Indonesian Employers' Association (Apindo) has launched the Apindo UMKM Merdeka (AUM) internship programme to strengthen university students' entrepreneurial skills. The programme places students in small and medium enterprises (UMKM) rather than large industries, providing hands-on experience. It is currently running in 13 provinces and includes digitalisation initiatives to support inclusive and sustainable economic development.

Bareskrim Dismantles Etomidate Trafficking Ring from Thailand, Four Arrested

The Indonesian National Police's Criminal Investigation Agency (Bareskrim) has uncovered a liquid etomidate trafficking network originating from Thailand, arresting four suspects in North and West Jakarta. The operation led to the seizure of 210 millilitres of the substance, valued at approximately Rp630 million. Authorities estimate the bust has saved 105 lives from potential drug abuse.

Indonesia's Economy Grows 5.45% in H1-2026, Among Highest in ASEAN

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, bringing first-half growth to 5.45%. Coordinating Minister for Economic Affairs Airlangga Hartarto stated this performance places Indonesia among the highest in ASEAN, though it trails Vietnam. The growth was underpinned by the processing industry, services, accommodation, and food and beverage sectors, supported by the government's flagship free nutritious meal programme.

Semarang deports four Chinese fugitives linked to love scam

The Semarang Immigration Office has deported four Chinese nationals wanted by authorities in their home country for their involvement in an online love scam syndicate. The individuals were apprehended during a raid in the Puri Anjasmoro area, with officials stressing that Indonesia will not serve as a safe haven for transnational criminal operations. Authorities have pledged to enhance intelligence efforts and urged the public to report suspicious foreign nationals.

Coordinating Minister urges public not to resort to anarchy during protests

Coordinating Minister for Political and Security Affairs Djamari Chaniago has stated that public demonstrations are permitted as long as they do not disrupt the wider community's interests. He emphasised that the government welcomes constructive criticism but warned that firm action will be taken against any riots or criminal offences.

Why Freeport is Requesting an IUPK Extension Beyond 2041

PT Freeport Indonesia has applied for an extension of its Special Mining Business Licence (IUPK) to secure operations beyond 2041. The Indonesian Mining and Energy Forum argues the request is rational due to the capital-intensive, high-risk nature of underground mining, which requires long-term certainty to justify massive investment. Securing the licence extension well in advance is deemed crucial for developing new underground mines and ensuring the profitability of associated downstream smelter investments.

KH Ahmad Rifa'i: The 18th-Century National Hero Who Pioneered Educational Reform in Indonesia

KH Ahmad Rifa'i, an 18th-century Islamic scholar and National Hero, is being recognised for his forward-thinking contributions to Indonesian education, which emphasised integrated knowledge, moral integrity, and religious moderation long before such concepts became mainstream. The Rifa'iyah movement he founded now manages around 250 Islamic boarding schools across Indonesia, and its youth wing is advocating for his legacy to be acknowledged alongside modern educational pioneers like Ki Hajar Dewantara. The Ministry of Primary and Secondary Education has responded positively to calls for greater recognition of his teachings.

North Kalimantan offers strategic investment projects

North Kalimantan's governor has presented a range of strategic investment opportunities to potential partners, highlighting sectors from green energy and infrastructure to agribusiness. The province is promoting major hydropower projects to support its Green Industrial Park and is offering early-mover advantages in a region with low competition. The local government is pledging administrative support to attract both national and global investors to accelerate economic development.

OJK Urges Regional Development Banks to Adopt Community Approach for MSME Growth

Indonesia's Financial Services Authority (OJK) is pushing Regional Development Banks (BPD) to adopt a community banking approach to better support micro, small, and medium enterprises (MSMEs). The regulator is overhauling credit distribution mechanisms to ensure loans are more accessible and empowering, rather than becoming a burden of non-performing debt. The strategy aims to balance MSME growth with credit quality, leveraging BPDs' local proximity to foster a sense of belonging and effectively compete with national banks.

Video: Three KUB Group Programmes by Bank Jatim to Boost Lending and Digitalisation

The Regional Bank Summit 2026 highlighted strategic initiatives by Indonesia's regional development banks (BPD) to strengthen their institutional capacity. Bank Jatim's KUB group is focusing on three key programmes to drive credit growth and digital banking transactions, supported by low-cost funding and enhanced human resources. The summit also discussed broader synergies among BPDs through the Joint Business Group (KUB) scheme to bolster their role in the national economy.

LRT Jakarta Phase 1B to Begin Operations, Kelapa Gading-Manggarai in 28 Minutes

The Jakarta provincial government plans to inaugurate the LRT Jakarta Phase 1B route connecting Velodrome to Manggarai this month, with President Prabowo Subianto expected to officiate. The new 6.4-kilometre track will reduce travel time from Kelapa Gading to Manggarai to just 28 minutes. The project, which required an investment of approximately Rp 12.1 trillion, is part of a broader plan to extend the line to Dukuh Atas by 2028, creating a new backbone for the city's public transport system with an estimated daily capacity of 80,000 passengers.

Purbaya Strictly Prohibits Finance Ministry SMVs from Offering Special Deposit Rates to Banks

Finance Minister Purbaya Yudhi Sadewa is moving to cap deposit rates offered by special mission vehicles (SMVs) under the Ministry of Finance to 80% of the central bank's benchmark rate. The policy aims to reduce the cost of capital for state-owned banks, which have complained that paying high deposit rates of 8-9% prevents them from lowering lending rates. The new rule is expected to take effect next week to help accelerate economic growth in the second half of 2026.

Government Prepares Stimulus to Anticipate El Nino Impact

The Indonesian government is preparing a stimulus package for the second half of 2026 to counter the economic effects of the strengthening El Nino phenomenon. Finance Minister Purbaya Yudhi Sadewa stated that President Prabowo Subianto has ordered the package, though its value and details are still under discussion. The meteorological agency has warned that the strong El Nino could trigger a prolonged dry season, threatening agriculture, water resources, and other key sectors.

Swift Post-Flood Response: Padang City Government Targets Cleanup of 92 Affected Schools in Two Days

The Padang city government is undertaking a rapid cleanup of 92 flood-affected schools, with the most severe damage reported at SMPN 41 and SMPN 27. Learning activities have been temporarily suspended as many teachers are also flood victims. Authorities are coordinating with disaster and environmental agencies to complete the cleanup within two days so that classes can resume safely.

Muslim Senate Candidate Humiliates Giant Jewish Lobby in Michigan

Progressive candidate Abdul El-Sayed won the Democratic primary for a US Senate seat in Michigan, overcoming his opponent Haley Stevens who was backed by tens of millions of dollars from pro-Israel lobby groups. The victory is a significant blow to the American Israel Public Affairs Committee (AIPAC), whose affiliated super PAC spent over $30 million in a failed effort to defeat El-Sayed. El-Sayed, who has accused Israel of genocide in Gaza, will now face Republican Mike Rogers in a November race that could determine control of the Senate.

Indonesia Shares Rise 0.5% on Better-Than-Expected GDP

Indonesian stocks gained 0.5% driven by stronger-than-expected second-quarter GDP growth of 5.29%, which surpassed market forecasts and reinforced confidence in the country's economic fundamentals. Sentiment was further boosted by government plans to finalise an incentive package, including subsidies of up to 40%, to accelerate electric vehicle adoption and attract investment. The rally also mirrored a broader Asian market upswing amid easing US-Iran tensions and reduced fears of imminent Federal Reserve rate hikes.

Indonesia's poverty rate falls to 8.07 pct, lowest in recent years

Statistics Indonesia (BPS) reported a decline in the national poverty rate to 8.07 percent in March 2026, down from 8.25 percent in September 2025, with the number of poor people falling by 430,000 to 22.93 million. The data highlighted a persistent urban-rural divide, with rural poverty at 10.67 percent compared to 6.34 percent in urban areas, and a widening spending gap among the rural poor. The national poverty line rose to Rp669,235 per capita per month, reflecting regional variations in living costs and household sizes.

DPD RI Calls OTT of Regional Heads in Central Java an Emergency

A member of the Regional Representative Council (DPD RI) has described the spate of arrests of regional heads in Central Java by the Corruption Eradication Commission (KPK) as an emergency. Abdul Kholik expressed deep concern after five regents were caught in sting operations this year alone. He noted that the signing of integrity pacts by local leaders has failed to prevent further corruption cases.

Foreign Media Suddenly Highlights '9 Dragons', What's Happening?

Hong Kong's South China Morning Post has spotlighted the evolving relationship between the Indonesian government and its wealthiest conglomerates, often referred to as the 'Nine Dragons'. Analysts suggest a new chapter is emerging as the state increases its role in economic management through policies like tighter export controls and a new commodity agency. Despite potential friction, the relationship is expected to endure due to mutual dependence.

Distribution of Indonesia's Poor: Java Highest, Kalimantan Lowest

Indonesia's poverty rate fell to 8.07% in March 2026, with the number of poor people declining by 430,000 to 22.93 million. Java remains home to the largest concentration of the poor at 12.02 million, while Kalimantan has the fewest at 870,000. The national poverty line rose to Rp669,235 per capita per month.