Indonesian Political, Business & Finance News

Archive: 5 August 2026

Showing 551-600 of 1,487 articles

BPD Bosses Reveal Synergy Opportunities with BPR and BPRS

Regional Development Banks (BPD) are exploring collaboration opportunities with Rural Banks (BPR) and Sharia Rural Banks (BPRS). BPD executives highlight that such partnerships can leverage BPDs' superior resources and technology with BPRs' close access to micro-market segments. The synergy is considered mutually beneficial, provided risks are carefully measured.

Social Affairs Ministry accelerates completion of permanent Sekolah Rakyat buildings

The Indonesian Ministry of Social Affairs is expediting the construction of permanent Sekolah Rakyat (People's Schools) to provide education for children from poor and vulnerable families. Of the 100 schools targeted for completion in 2026, 93 have been finished, with the remaining seven facing delays due to geographical challenges in regions like Papua and the Riau Islands. The ministry also plans to begin construction of an additional 250 permanent buildings in October.

Video: Jakarta Bank Chief Says RI Economy Grows Positively, Regional Banks Follow Suit

Indonesia's positive economic growth in the second quarter of 2026 is reflected in the strong performance of regional development banks, according to Bank Jakarta President Director Agus Haryoto Widodo. He noted that the 5.29% growth rate, supported by consumption and government stimulus, has helped drive banking credit growth to 12.67%. Bank Jatim President Director Winardi Legowo added that the strong fundamentals have enabled regional banks to maintain asset and profit growth despite global uncertainties.

Central Kalimantan Government Strengthens Integrated Handling to Tackle Forest and Land Fires

The Central Kalimantan Provincial Government is intensifying its integrated approach to combating forest and land fires by optimising all available resources. Operations involve air and ground task forces, with a priority on the Tumbang Nusa area in Pulang Pisau Regency, where 32 teams have been deployed. The BMKG reported 256 hotspots across the province on 4 August 2026, prompting continued firefighting, peatland cooling, and prevention patrols.

Government Investigates Paper Proposing Free Nutritious Meals Programme for Nobel Peace Prize

The Indonesian government is investigating a paper that proposes the Free Nutritious Meals (MBG) programme as a candidate for the Nobel Peace Prize. The paper, uploaded to an academic platform, lists President Prabowo Subianto as a co-author and includes a letter purportedly from the Ministry of Home Affairs. Officials are currently clarifying the authenticity of the document and the involvement of named government institutions and staff.

Apindo hopes Q2 growth will be capital to strengthen industrial recovery

The Indonesian Employers' Association (Apindo) views the 5.29 per cent economic growth in the second quarter of 2026 as a positive achievement that must be sustained. Industry faced significant headwinds during the quarter, including rising energy prices due to the Strait of Hormuz conflict and a weakening rupiah. Apindo urges that this growth momentum be maintained to reverse the defensive trend in the industrial sector.

Defence Minister and Deputy TNI Commander Become Honorary Members of the Marine Corps

Indonesia's Defence Minister and the Deputy Commander of the Indonesian National Armed Forces (TNI) were inducted as honorary members of the Navy's Marine Corps during a ceremony in the Riau Islands. The honour, which also included the Chairman of the House's Commission I and the Army and Air Force Chiefs of Staff, recognises their support for the corps. The ceremony took place alongside an integrated TNI military exercise, symbolising solidarity between the military and the Ministry of Defence.

SPPG Worker in Kuningan Sacrifices Himself to Prevent Wild Boar from Charging Children

A volunteer for the Nutrition Fulfilment Service Unit (SPPG) in Kuningan, West Java, sustained injuries after restraining a wild boar that had strayed into a residential area and was charging towards children. The incident, which occurred on Sunday, highlights the risks of human-wildlife conflict in villages bordering forests. The West Java Natural Resources Conservation Agency (BBKSDA) noted that such conflicts are often triggered by factors including water sources and the presence of poachers disrupting the animals' habitats.

Finance Ministry Has Not Yet Applied for Ownership of IDX

Finance Minister Purbaya Yudhi Sadewa has stated that his ministry has not yet discussed or applied for share ownership in the Indonesia Stock Exchange (IDX). However, he noted that the newly formed sovereign wealth fund Danantara Indonesia has already submitted a request to acquire shares. The potential ownership changes follow the enactment of the P2SK Law, which allows state representation in the bourse's demutualisation process.

Derby DIY Between PSIM Jogja and PSS Sleman Next Season: Will Supporters Be Allowed to Attend?

The first-ever top-flight derby between PSIM Jogja and PSS Sleman in the Super League next season has prompted security discussions. The Yogyakarta Special Region Police Chief has stated that the possibility of holding the match locally and allowing spectators remains open. A coordination meeting involving club owners, managers, and supporter presidents is scheduled for next week to assess the situation and make a final decision.

Bank Jakarta CEO Reveals Concerns Over BPD KUB

Bank DKI's CEO, Agus Haryoto Widodo, has highlighted challenges in the Regional Development Bank (BPD) business group (KUB) scheme, including differing shareholder interests and cost-sharing issues. He emphasised the importance of early discussions to ensure smooth collaboration, while affirming the scheme's relevance for building technology and human resources. Widodo remains optimistic about BPD growth prospects, provided governance and asset quality are maintained.

35 Floodgate Keepers in West Lombok Unpaid for 7 Months Amid Jurisdictional Dispute

Thirty-five floodgate keepers in West Lombok have not received their salaries for seven months despite holding civil servant identification numbers and working daily. A local parliamentarian says the delay stems from a dispute between the West Lombok Regency and the provincial government over which authority is responsible for their employment. The workers are considered vital for maintaining irrigation systems that support the national food security programme.

Gus Ipul Stresses Three Priorities for Sekolah Rakyat Management

Social Affairs Minister Saifullah Yusuf has outlined three key priorities for the management of Sekolah Rakyat across Indonesia. He emphasised the need to complete student orientation and baseline data collection, safeguard state-owned facilities, and strengthen public documentation of the schools' activities. The directives aim to ensure the programme's success in preparing Indonesia's 'golden generation'.

Whoosh Debt Taken Over by Finance Ministry, Purbaya Guarantees No Burden on State Budget

The Indonesian Finance Ministry will take over the debt of the Jakarta-Bandung High-Speed Rail (Whoosh) from Danantara, with the transfer expected to be completed by mid-September 2026. Finance Minister Purbaya Yudhi Sadewa assured that the debt management will be handled through a Special Mission Vehicle (SMV) and will not directly burden the state budget. The government will also assume the 60 percent majority stake in PT KCIC from PT KAI, while China's consortium retains its 40 percent share and has indicated interest in extending the line to East Java.

Viral Incident of Healthcare Workers Mocking BPJS Patient Who Waited 8 Hours Prompts Ministry Response

Indonesia's Ministry of Health has expressed regret over social media comments made by healthcare workers mocking a BPJS patient who waited eight hours for a hospital room. The patient, Yurizal Tri Chaerawan, later passed away, intensifying public scrutiny of the incident. The Ministry has urged all medical personnel to uphold empathy and professionalism, both in practice and online.

UBSI Rector Joins International Community Service Programme by LLDIKTI Region IV Professors Forum, Strengthening Collaboration

The Rector of Bina Sarana Informatika University (UBSI) participated in an international community service programme in Pontianak and Kuching, Malaysia, aimed at strengthening cross-border academic collaboration. The event, organised by the LLDIKTI Region IV Professors Forum, focused on enhancing the capacity of lecturers and creating impactful higher education institutions. The initiative underscores UBSI's commitment to the Tri Dharma of Higher Education and expanding its global academic network.

BPS: Poverty rate declines across all regions of Indonesia

Indonesia's national poverty rate fell to 8.07 per cent in March 2026, with 22.93 million people living below the poverty line, a reduction driven primarily by improvements in Java. Despite the overall decline, rural areas continue to experience higher poverty levels and worsening depth and severity of poverty compared to urban centres.

PT CCT Strengthens Emergency Services on Cimanggis-Cibitung Toll Road via 14050

PT Cimanggis Cibitung Tollways (CCT) has introduced a new, simplified emergency call centre number, 14050, effective 4 August 2026, to improve response times for drivers. The previous number will remain active in parallel until October 2026 to ensure a smooth transition, whilst the WhatsApp service number remains unchanged. The initiative aims to enhance safety, comfort, and traffic flow on the Cimanggis-Cibitung toll road.

Minister Yandri Invites MSMEs to Collaborate with 'Red and White' Village Co-ops

Villages Minister Yandri Susanto has assured that the new 'Red and White' Village Cooperatives (KDKMP) will not compete with or shut down local micro, small, and medium enterprises (MSMEs). He clarified that the co-ops are intended to serve as government infrastructure for aid distribution and as off-takers for local produce. The Minister also reported the spread of hoax narratives about the co-ops closing village shops to the police.

BNPB Coordinates Integrated Response to Forest Fires in Three East Kalimantan Regencies

The National Disaster Mitigation Agency (BNPB) is coordinating an integrated firefighting effort across three regencies in East Kalimantan following significant forest and land fires. The blazes affected tens of hectares in Berau, Bontang, and Paser, with the largest incident burning 13 hectares of scrubland. Authorities have confirmed that all fires are now under control and no casualties were reported.

One Victim of Pompong Boat Sinking in Mengkikip Waters Found Dead

A joint search and rescue team has recovered the body of one victim from a pompong boat that sank in the waters off Mengkikip Village, Meranti Islands Regency, Riau. The accident occurred on Sunday, 3 August, while the vessel was transporting four passengers to harvest sago trees. One other passenger remains missing as the search operation continues.

UMY to Host 2026 Indonesian Digital Library Conference

Universitas Muhammadiyah Yogyakarta (UMY) will become the first private university to host the Indonesian Digital Library Conference (KPDI) in 2026. The event will feature a web portal competition and focus on digital literacy, the challenges of AI, and combating misinformation. The National Library head stressed the importance of ensuring information accuracy in the digital age.

Police Still Hunting Perpetrators of Assault and Forced Masturbation of Man in Tangerang

Police in Tangerang are pursuing suspects who allegedly assaulted a man and forced him to masturbate after he tried to resign from an illegal private lending operation. The victim, identified as PG, was reportedly detained, beaten by five intoxicated colleagues, and filmed during the forced act, with the video subsequently distributed. Authorities have processed the crime scene and are continuing their investigation to locate the five reported individuals.

Social Affairs Ministry accelerates teacher recruitment for 'Sekolah Rakyat'

Indonesia's Ministry of Social Affairs is fast-tracking the recruitment of 3,300 teachers and 5,000 boarding supervisors to ensure the 'Sekolah Rakyat' (People's Schools) are operational for the 2026/2027 academic year. The ministry is coordinating with state bodies to expedite procurement through the teacher professional education programme. A transitional scheme involving guest teachers will be implemented to maintain teaching activities until the permanent recruitment process is completed.

Indonesia eyes cassava a future growth driver through research center

Indonesia is positioning cassava as a strategic commodity to drive economic growth and improve farmer welfare, with prices having tripled to around Rp2,200 per kilogram. A new National Cassava Center has been inaugurated at the University of Lampung, a province that accounts for over 70 percent of national production, to strengthen research and develop the value chain. The initiative aims to support national food security goals and enhance the country's global competitiveness in the commodity.

Former CEO and CFO Detained in RM370 Million Share Case Linked to Tabung Haji

Malaysia's anti-corruption commission has detained the former CEO and CFO of a public legal entity over alleged abuse of power in the acquisition of shares in two plantation companies worth RM370 million. The arrests follow the findings of a Royal Commission of Inquiry into the management of the pilgrimage fund, Tabung Haji. The suspects were briefly released on health grounds but are scheduled to return for further questioning as the investigation continues.

Bittime: Crypto Investors Remain in Wait-and-See Mode, Bitcoin Moves in Narrow Range

Bitcoin's price movement remains constrained as investors await regulatory clarity in the United States and digest the Federal Reserve's decision to hold interest rates steady. Bittime reports a flight to liquidity, with trading concentrated in USDT, Bitcoin, Ethereum, and Solana. The firm notes that Indonesia's developing regulatory framework, including a new OJK roadmap, offers a more positive long-term outlook for the domestic digital asset industry.

Government Confirms Fences at Several Malls Have Been Dismantled

Coordinating Minister for Political and Security Affairs Djamari Chaniago has confirmed that local authorities have ordered the removal of fences at several shopping centres due to permit violations. The minister stated the barriers were erected for general security purposes, not in anticipation of rumoured anarchist actions. He urged the public to remain calm and trust the government with all security matters.

BPS: Manufacturing slowdown triggered by coal and refinery contraction

Indonesia's manufacturing growth decelerated to 4.52 per cent year-on-year in the second quarter of 2026, primarily due to a 3.97 per cent contraction in the coal and oil and gas refining sub-sectors. The non-oil and gas manufacturing sector remained robust, expanding by 5.32 per cent, driven by strong domestic and export demand for food, electronics, and chemicals. Overall, the Indonesian economy grew by 5.29 per cent, with manufacturing remaining the largest contributor to GDP.

Bappenas Head Sends Off 145 Scholarship Recipients for 2026

Minister of National Development Planning Rachmat Pambudy has dispatched 145 civil servant scholarship recipients for 2026 to strengthen the capacity of national development planners. The programme includes participants from various ministries, agencies, and regional governments, with funding from internal, cost-sharing, and international partnership schemes. The initiative is viewed as a strategic instrument to ensure high-quality, cross-sectoral policy integration and the sustainability of the national development agenda.

Operator Assures Full Responsibility and Insurance for KM Mutiara Sentosa 2 Victims

The operator of the KM Mutiara Sentosa 2 has pledged full responsibility and insurance coverage for victims of the fatal fire. The company's operations director apologised for the incident and confirmed that both passengers and affected vehicles are insured. An investigation by the National Transportation Safety Committee is underway, with the company deferring to authorities on the cause of the blaze.

Home Affairs Minister Reveals 79 Regional Governments Need Rp3.7 Trillion to Pay Employee Salaries

Home Affairs Minister Tito Karnavian has disclosed that 79 regional governments require between Rp3.5 trillion and Rp3.7 trillion to cover their employee wage bills. The shortfall is largely attributed to the recent mass appointment of contract-based civil servants (PPPK). The central government is implementing structured fiscal measures to ensure aid is targeted, including auditing regional budgets for inefficiencies before disbursing additional funds.

Amran Uncovers Counterfeit Fortified Rice Sold at Rp 42,000 per Kg

The Indonesian government is expanding its investigation into the distribution of fortified rice after discovering products sold at exorbitant prices without meeting nutritional standards. Laboratory tests revealed that 80% of sampled rice with nutritional claims did not match their labels, with one product priced at Rp 42,500 per kg lacking the required distribution permit. Authorities are now scrutinising the entire supply chain to ensure fortification is not used as a pretext for overcharging consumers, particularly low-income families.

As KUB Parent, Bank Jatim (BJTM) Ready to Roll Out Digital Synergy Programme

Bank Jatim is leveraging its role as the parent of a banking group (KUB) to implement a three-pronged strategy focused on funding, credit quality, and transaction growth. The bank is also extending its new JConnect digital platform to its five regional bank partners to reduce their individual technology investment costs. This initiative follows a Rp400 billion capital injection to help the member banks meet regulatory core capital requirements.

South Sumatra Police Apply Scientific Crime Investigation in ALS Bus Case

South Sumatra Police have employed the Scientific Crime Investigation method to uncover corporate liability in the fatal ALS bus crash that killed 19 people. The investigation examined 47 witnesses and multiple expert testimonies, establishing a direct causal link between management negligence and the deaths. Two company directors have been named as primary suspects and face charges under traffic and criminal laws.

TransJakarta Queues Stretch as Cikini Building Fire Disrupts Traffic

A building fire on Jalan Cikini Raya in Central Jakarta caused severe traffic congestion and forced the closure of the road on Wednesday afternoon. The incident led to long queues of TransJakarta buses and prompted a large-scale response from the fire department, which deployed 70 personnel and 18 fire engines. One firefighter required medical attention at the scene.

South Korea to Resume Railway Construction to North Korea in 2027

South Korea plans to restart construction of a railway line connecting Seoul to Wonsan in North Korea, with work scheduled to begin in 2027 and conclude by 2029. The project, originally launched in 2015, was suspended a year later due to deteriorating cross-border relations and North Korea's subsequent destruction of inter-Korean road and rail links. The Unification Ministry also outlined broader policy goals, including peaceful conflict resolution and a long-term push for a nuclear-free Korean Peninsula.

Geological Agency: Kelimutu Crater Landslide Unrelated to Volcanic Activity

Indonesia's Geological Agency has confirmed that a landslide on the crater wall of Mount Kelimutu in East Nusa Tenggara is not linked to any increase in volcanic activity. The collapse, which occurred between two of the mountain's famed coloured lakes, was attributed to weathering and rock fractures. Authorities have maintained the volcano's status at Level I (Normal) and urged visitors to adhere to safety barriers.

PANRB: Optimising LPSK Organisation Strengthens Public Protection

The Ministry of State Apparatus Empowerment and Bureaucratic Reform (PANRB) is backing the organisational and human resource optimisation of the Witness and Victim Protection Agency (LPSK) following its elevation to a state institution. The move aims to ensure the agency can effectively fulfil its expanded mandate under the new Law No. 3 of 2026, which includes legal, medical, and economic recovery for victims. The government will focus on aligning competencies and governance with the agency's updated strategy rather than merely expanding its structure.

Purbaya Confirms Finance Ministry to Take Over All SOE Shares in Whoosh

Finance Minister Purbaya Yudhi Sadewa has confirmed that the government will take over the entire stake held by the Indonesian SOE consortium in the high-speed rail project, KCIC. The shares will be transferred to the Ministry of Finance and managed by a Special Mission Vehicle to avoid directly burdening the state budget. The restructuring of KCIC's debt is targeted for completion by September 2026, while the Chinese investor consortium is expected to retain its 40 per cent shareholding.

NTB Economy Grows 7.41 Percent, Mining Becomes Main Driver

The economy of West Nusa Tenggara (NTB) expanded by 7.41 percent in the second quarter of 2026, primarily propelled by a surge in the mining sector. The mining and quarrying sector recorded the highest growth at 30.57 percent year-on-year, supported by increased copper concentrate production following an export relaxation policy. Exports of goods and services also soared by 49.42 percent, driven by optimised smelter activity and commodity shipments.

Without Nuclear Bombs, Iran Has a Weapon That Makes the World Anxious

Iran leverages its strategic position over the Strait of Hormuz as a powerful economic weapon, disrupting global energy supplies. While Gulf states are building alternative export routes for crude oil, significant bottlenecks remain for products like petrol, diesel, and LNG, ensuring Iran retains considerable influence over energy markets for years to come.

Bank Jatim Chief 'Shows Off' Regional Bank Synergy Success Through KUB

Bank Jatim's CEO highlighted the successful synergy among regional development banks (BPD) through the Kelompok Usaha Bank (KUB) scheme. The collaboration, involving banks from NTB, NTT, Banten, Sulawesi Tenggara, and Lampung, aims to strengthen banking structures and competitiveness. The discussion took place at the CNBC Indonesia Regional Bank Summit 2026, where leaders expressed optimism about the sector's performance amid strong national economic growth.

Positive Sentiment Lifts IHSG 0.5% to 6,351

The Jakarta Composite Index (IHSG) rose 0.5% to 6,351.14 on Wednesday, buoyed by stronger-than-expected domestic economic growth of 5.29% in the second quarter and positive global cues. Wall Street's record highs and easing geopolitical tensions over the Strait of Hormuz also supported the rally, with foreign investors recording a net buy of Rp623.5 billion.

Multi-Storey Building in Cikini Engulfed in Flames, Several People Trapped

A fire broke out in a multi-storey building in the Cikini area of Central Jakarta on Wednesday afternoon. Firefighters are working to extinguish the blaze, and reports indicate that eight people were trapped on the roof to escape the flames and smoke. The cause of the fire remains unknown.

Public Works Ministry to Build Irrigation in Kuansing, Riau, Worth Rp101 Billion

The Ministry of Public Works is set to construct 56 shallow groundwater irrigation networks and rehabilitate irrigation facilities in Kuantan Singingi Regency, Riau, with a budget of Rp101 billion for 2026. Minister Dody Hanggodo stated the investment aims to capitalise on the region's significant agricultural potential and boost food self-sufficiency. The projects, funded entirely by the state budget, will be spread across 11 sub-districts.

Boosting Regional Economy, Bank Jakarta Focuses on These Sectors!

Bank Jakarta is targeting infrastructure, health, MSMEs, education, and food sectors to drive regional economic growth. The bank is also acting as the anchor in a business group scheme with Bank Maluku Malut, creating value through syndicated funding collaborations. The Governor of DKI Jakarta emphasised that such inter-regional cooperation through BUMDs can enhance economic value and expand financial access.

RANA and the Spaces We Must Nurture Together

The Indonesian government has launched the National Movement for Safe and Comfortable Spaces for Children (RANA) to combat rising violence against minors. Data reveals that a significant portion of abuse occurs in homes and schools, prompting a multi-pillar strategy covering family, education, public, and digital spaces. The initiative aims to unify fragmented protection efforts and has been reinforced with technical regulations and cross-ministerial cooperation.

Coordinating Minister confirms fences installed at several malls have been dismantled

Coordinating Minister for Political and Security Affairs Djamari Chaniago has confirmed that local authorities have ordered the removal of newly erected fences at several shopping centres due to permit violations. The minister stressed the barriers were for general security purposes and not linked to any specific threat, urging the public to remain calm. The Jakarta governor had previously requested the fences be taken down to avoid creating unnecessary alarm.

Deputy Minister for Higher Education, Science, and Technology Urges ITS New Students to Think Critically About AI

Deputy Minister Stella Christie has called on new students at the Sepuluh Nopember Institute of Technology (ITS) to critically assess the artificial intelligence boom, warning it may resemble an economic bubble. She highlighted the enormous energy and water resources required to power AI data centres, questioning whether the benefits justify the environmental cost. Christie stressed that universities must focus on knowledge curation to ensure graduates remain irreplaceable by technology.