Indonesian Political, Business & Finance News

Archive: 5 August 2026

Showing 851-900 of 1,487 articles

Several Central Java Regencies Unable to Pay Civil Servant Salaries After Transfer Fund Cuts

The Central Java provincial government has reported that several regency and city administrations are struggling to pay the salaries of their civil servants (ASN) and contract workers (PPPK) following cuts to general allocation funds. While the provincial budget can still cover its nearly 66,000 employees, many local governments, whose personnel spending exceeds 30% of their budgets, are heavily reliant on central government transfers.

OJK Encourages Regional Development Banks to Compete and Support Government Programmes

Indonesia's Financial Services Authority (OJK) is urging Regional Development Banks (BPD) to transform into 'Regional Champions' by reducing reliance on local government budgets and civil servant loans. The regulator is pushing BPDs to innovate products based on local culture and needs to better compete with national banks. The initiative aims to strengthen BPDs' role in supporting government programmes, boosting financial inclusion, and consolidating with rural banks to drive regional economic growth.

Ministry of Religious Affairs and DKI Jakarta Government Prepare IDR 500 Billion Cash Waqf Movement

The Ministry of Religious Affairs and the DKI Jakarta Provincial Government are collaborating to launch a Cash Waqf Movement targeting IDR 500 billion as part of Jakarta's 500th anniversary in 2027. The initiative aims to make Jakarta a model for productive waqf management by involving civil servants, Islamic organisations, and financial institutions. The funds will be directed towards sustainable economic programmes, including support for MSMEs, education, and poverty alleviation.

Defence Minister Sjafrie: TNI Combat Strength Fulfilled, from Weaponry to Ammunition

Defence Minister Sjafrie Sjamsoeddin has declared that the combat readiness of the Indonesian National Armed Forces (TNI) has been significantly bolstered, with requirements for primary weapon systems and ammunition now largely met. The assessment follows an integrated tri-service exercise in Lingga, Riau Islands, which demonstrated a marked improvement in personnel and equipment preparedness compared to previous years. The government views this as a key milestone in its ongoing revitalisation of national defence capabilities throughout 2026.

Malaysian Cabinet Discusses Pilot's Drug Arrest in Indonesia, Considers Stricter Measures

The Malaysian Cabinet has discussed the recent arrest of a Malaysia Airlines pilot in Jakarta for alleged drug smuggling. The government is considering deploying police officers at Kuala Lumpur International Airport and urging airlines to tighten crew selection procedures to prevent similar incidents.

Minister Bahlil Appoints New Heads of Lemigas and Aceh Oil and Gas Agency

Energy and Mineral Resources Minister Bahlil Lahadalia has inaugurated four new officials, including the heads of the Geological Agency and the Oil and Gas Testing Centre (Lemigas). The appointments also include a new head for the Aceh Oil and Gas Management Agency (BPMA), which operates with special autonomy similar to SKK Migas. The minister emphasised the strategic roles of these bodies in providing resource data and securing national oil and gas supplies.

KPK Raids South Jakarta Immigration Office in Silmy Karim Case, Seizes SGD 8,500

Indonesia's Corruption Eradication Commission (KPK) has raided the South and Central Jakarta immigration offices as part of an investigation into an alleged extortion scheme involving residence permits for foreign nationals. Investigators seized documents, electronic evidence, and SGD 8,500 in cash from the South Jakarta office. The case, which implicates former Deputy Minister of Immigration and Corrections Silmy Karim, is estimated to have generated illicit funds totalling Rp 145.5 billion.

Febrie Adriansyah Formally Files for Pretrial at South Jakarta Court

Former Junior Attorney General for Special Crimes, Febrie Adriansyah, has officially filed a pretrial motion at the South Jakarta District Court to challenge the legality of his suspect designation and detention. His legal team argues the move is intended to scrutinise procedural and administrative aspects of the investigation, not to evade justice. The case relates to a money laundering investigation that has already seen the seizure of 74 kilograms of gold and Rp476 billion in cash.

Facing Fierce Competition, Regional Development Banks Can Adopt Community Bank Approach

Indonesia's Financial Services Authority (OJK) suggests that Regional Development Banks (BPD) should adopt a community bank approach to better compete with larger national banks. This strategy focuses on building close relationships and a sense of belonging within local communities, particularly among MSMEs. The OJK emphasises that psychological proximity and unique local engagement are crucial for BPDs to survive intense competition.

Listyo Sigit Responds to Rumours of Presidential Letter on National Police Chief Replacement

National Police Chief General Listyo Sigit Prabowo has responded to circulating rumours about a presidential letter regarding his replacement, stating that such a decision is the prerogative of President Prabowo Subianto. Sigit emphasised that as a soldier, he will follow any decision and is not disturbed by the speculation. Lawmakers have also denied the existence of such a letter, with one praising Sigit's performance over the past five years and suggesting there is no urgency for a leadership change.

Bahlil Appoints Four New Officials at the Ministry of Energy and Mineral Resources

Minister of Energy and Mineral Resources Bahlil Lahadalia has inaugurated four new senior officials in Jakarta, including a new Head of the Geological Agency and Head of the Aceh Oil and Gas Management Agency. The appointments are intended to strengthen the ministry's performance, particularly in managing geological data and assessing the economic impact of energy policies. The new Head of LEMIGAS has also been tasked with overseeing national oil and gas procurement.

Moments of Saepul's Arrest, the Depok Mutilation Perpetrator

Police have arrested Saepul, the 26-year-old suspect in the murder and mutilation of a man in Depok, West Java. The arrest took place in Pandeglang, Banten, following an investigation that tracked him to a house in a rural area. The suspect confessed to the crime, which stemmed from an argument after the two met on social media.

BP3MI West Kalimantan Repatriates Elderly Migrant Worker After 30 Years Abroad

An elderly Indonesian migrant worker from Pontianak has been reunited with her family after more than 30 years in Malaysia, facilitated by the Indonesian Migrant Worker Protection Service Centre (BP3MI) in West Kalimantan. Halifah Bakri, who had suffered a stroke, was repatriated following close coordination between the Indonesian Embassy in Kuala Lumpur and BP3MI. Her son expressed profound gratitude to the government for bringing his mother home after decades without contact.

8 Oil and Gas Giants 'Feast' Amidst Global Suffering, Raking in Rp11 Million per Minute

The world's eight largest oil and gas companies reported combined profits of nearly US$93 billion in the second quarter, capitalising on severe supply disruptions. Saudi Aramco led the pack, while US and European majors also posted record or near-record earnings, sparking political backlash and renewed calls for climate accountability. Critics argue these profits, earned amidst global wildfires and drought, should be taxed to fund renewable energy and climate damage reparations.

Coordinating Minister for Political and Security Affairs Urges Public Not to Believe Hoaxes on Social Media

Coordinating Minister for Political and Security Affairs Djamari Chaniago has urged the public not to be misled by hoaxes circulating on social media regarding planned large-scale demonstrations and security threats in Jakarta. He emphasised that the security situation remains fully under control, with public activities proceeding as normal. The statement was made following a high-level meeting with the TNI Commander, National Police Chief, Attorney General, and Head of BIN.

Danantara COO Dony Oskaria Discusses Whoosh Debt Settlement with Finance Minister

Danantara COO Dony Oskaria met with Finance Minister Purbaya Yudhi Sadewa to discuss the restructuring of state-owned enterprises and the settlement of the Jakarta-Bandung High-Speed Rail (Whoosh) debt. Both officials agreed on the need to streamline BUMN governance, with discussions on tax relief and a finalised debt resolution scheme for KCIC still underway.

Government Strengthens Synergy with Bank Indonesia to Maintain Economic Stability

The Indonesian government is deepening its coordination with Bank Indonesia (BI) to safeguard national economic stability and sustain growth amid global uncertainty. Officials stress that close fiscal and monetary policy alignment is essential to navigate geopolitical tensions and trade fragmentation. The collaboration also focuses on empowering MSMEs, expanding financing access, and accelerating digital transformation.

Road to Talent Fest 2026 Drives Collaboration to Strengthen National Talent

The Indonesian government, through the Ministry of National Development Planning (Bappenas), is promoting cross-sector collaboration to develop national talent via the Road to Talent Fest 2026. The initiative aims to socialise the National Talent Management (MTN) programme and build an integrated ecosystem for talent in arts, sports, research, and innovation. The programme is part of a strategic effort to prepare superior human resources for the Indonesia Emas 2045 vision.

House Commission IX Urges Health Ministry to Discipline Doctors Mocking BPJS Patients

Indonesia's House of Representatives (DPR) Commission IX has called on the Ministry of Health to investigate and sanction doctors who made disparaging comments towards a BPJS patient who later died. The patient had complained on social media about waiting eight hours for a hospital room, only to receive unsympathetic responses from accounts allegedly belonging to medical professionals. Lawmakers are demanding strict action against the hospital and staff involved, highlighting ongoing discrimination against national health insurance users.

Indonesia has strong foundation for RWA tokenization: Minister

Minister of National Development Planning Rachmat Pambudy stated that Indonesia possesses a strong foundation for real-world asset (RWA) tokenization, driven by high internet penetration and a growing digital economy. He emphasized that tokenization could accelerate digital transformation and expand investment access, while Deputy Vivi Yulaswati noted that priority sectors include financial services, agriculture, and the creative economy. The government is focusing on strengthening governance, regulatory harmonization, and ecosystem readiness to ensure the innovation benefits low-income communities.

Indonesia conducts initial study on high-speed railway to East Java

The Indonesian government has launched a preliminary study to extend the Whoosh high-speed railway from Bandung to Surabaya, with three potential route alignments under assessment. The feasibility of the extension hinges on the successful financial restructuring of the current Jakarta-Bandung line operator, PT Kereta Cepat Indonesia China. This initial assessment will form the basis for further detailed studies and a final route determination.

Customs Supports Jepara Luggage Exports with Bonded Zone Facility

The Customs and Excise Office of Central Java and Yogyakarta has granted a Bonded Zone facility to PT Daw Son Indonesia, a luggage manufacturer in Jepara, to boost its export competitiveness. The facility provides fiscal incentives such as import duty suspension and tax exemptions, aimed at reducing production costs and accelerating logistics. The company, which exports primarily to the United States and the United Kingdom, projects its production capacity will increase from 840,000 units in 2026 to over one million units by 2030, while expanding its workforce from 411 to 700 employees.

Garuda Scholarship: A Strategic Investment in Youth and a Test of State Protection

The Garuda Scholarship programme, initiated by President Prabowo Subianto, marks a strategic expansion of overseas study opportunities for high school graduates beyond STEM fields. The initiative echoes B.J. Habibie's vision but raises critical questions about the state's readiness to protect young awardees, many aged 17-18, studying abroad. The programme is framed as a long-term political investment in human capital for Indonesia's Golden Indonesia 2045 vision.

Former Jampidsus Febrie Adriansyah Files Pretrial Motion, Alleges Multiple Procedural Violations

Febrie Adriansyah, the former Jampidsus, has filed a pretrial motion at the South Jakarta District Court challenging his recent detention. His legal team claims to have uncovered numerous procedural violations in the corruption and money laundering case against him. The lawyers are seeking a ruling that declares his suspect status and detention unlawful, and are requesting the investigation be halted.

BPS Reveals MBG Budget Helps Drive Indonesia's Economy to 5.29% Growth

Statistics Indonesia (BPS) has stated that the accelerated disbursement of the National Nutritious Meals (MBG) programme budget contributed to the country's economic growth in the second quarter of 2026. Government consumption expenditure grew significantly, reversing a contraction from the previous year, and its contribution to GDP increased. This fiscal stimulus helped offset a slight decline in the share of household consumption.

Video: Towards 8% Economic Growth, Government Must Strengthen Investor Confidence

Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, demonstrating resilience amid geopolitical uncertainty. Senior economist Piter Abdullah stressed that the government must implement policies that boost private sector confidence, particularly in manufacturing, to achieve the 8% growth target. He also highlighted the importance of safeguarding the UMKM sector due to its role in employment and domestic consumption.

Jakarta Transportation Agency Launches 24-Hour Call Centre 1500813

The Jakarta Transportation Agency (Dishub) has introduced a new integrated call centre, 1500813, operating 24/7 to handle transport-related reports and services. The service aims to provide faster public access for reporting traffic issues, requesting emergency guidance, and lodging complaints about transport infrastructure. Governor Pramono Anung is scheduled to officially launch the service at the Hotel Indonesia roundabout during the upcoming Car-Free Day.

Coordinating Minister for Political and Security Affairs Assures Domestic Situation is 'Very Stable'

Coordinating Minister for Political and Security Affairs Djamari Chaniago has assured the public that the domestic security situation is under control and 'very stable', dismissing social media reports as hoaxes. Following a closed-door meeting with top security officials, he urged the public not to be provoked by disinformation and emphasised that security forces remain vigilant to ensure government programmes can proceed without disruption.

BNPB Stresses Comprehensive Handling and Prevention as Priorities for Disaster Resilient Villages

The National Disaster Mitigation Agency (BNPB) has emphasised that comprehensive disaster management and prevention must be the main priorities for the Disaster Resilient Village (Destana) programme. Speaking in Malang, BNPB Head Suharyanto highlighted the importance of these aspects to minimise casualties and material losses, noting that East Java is among the regions with the highest disaster risk in Indonesia. He urged that Destana forums must not be merely ceremonial but should function effectively to provide accurate information to the public, especially regarding current threats like drought and forest fires.

US Claims to Have Escorted Over 1,000 Ships Through Strait of Hormuz Amid Iran Blockade

The United States Central Command (CENTCOM) has stated it has safely escorted more than 1,000 commercial vessels through the Strait of Hormuz in the past three months. This operation comes in response to Iran's official closure of the strategic waterway and ongoing military tensions following the collapse of a peace agreement. The US has positioned itself as the guardian of the strait, enforcing a blockade on Iranian ports while Tehran demands the cessation of American military interference.

Forest and Land Fires in Ketapang, West Kalimantan: One Reported Dead

A resident has died in forest and land fires sweeping through Ketapang Regency, West Kalimantan, with authorities suspecting the victim was overcome by thick smoke before being engulfed in flames. Firefighting efforts are ongoing across multiple districts, hampered by limited water sources, while a water-bombing helicopter has been deployed to assist ground teams. Officials have urged the public to refrain from slash-and-burn land clearing and to report any fire sightings immediately.

Indonesia's Q2 economic momentum remains strong: deputy minister

Indonesia's economic momentum remained robust in the second quarter despite slightly slower GDP growth, with strong manufacturing and investment indicators supporting the government's confidence in achieving its 2026 growth target. Deputy Finance Minister Juda Agung highlighted resilient household purchasing power, a healthy state budget, and disciplined fiscal management as key factors bolstering international investor confidence. The government plans to implement stimulus measures in the second half of the year to further strengthen economic activity while maintaining fiscal sustainability.

House Deputy Speaker Urges Sanctions for Health Workers Mocking BPJS Patient

A deputy speaker of Indonesia's House of Representatives has called for sanctions against healthcare workers who allegedly mocked a BPJS patient complaining about an eight-hour wait for a hospital bed. The patient, Yurizal Tri Chaerawan, has since passed away, prompting the legislator to stress that all patients deserve respectful and empathetic treatment. He also urged the government to address fundamental issues in the healthcare system, including facility shortages and referral processes.

KPK Seizes Documents and S$8,500 in Raids on Two Immigration Offices

Indonesia's Corruption Eradication Commission (KPK) has seized documents, electronic evidence, and S$8,500 in cash during searches of the Central and South Jakarta immigration offices. The raids are part of an investigation into an alleged extortion scheme involving the processing of residence permits for foreign nationals. The case has ensnared former Deputy Minister of Immigration and Corrections Silmy Karim, with the state's total losses estimated at Rp145.5 billion.

Freeport's New Kucing Liar Mine Project to Produce 735,000 Ounces of Gold Annually

PT Freeport Indonesia is developing the Kucing Liar underground mine in Papua, targeting a production ramp-up by 2030. The project is expected to yield an average of 750 million pounds of copper and 735,000 ounces of gold per year at full capacity, with total investment projected at US$5.4 billion.

Sharia Investment in Focus: Menara Syariah and CFX Develop AI-Based Digital Asset Ecosystem

Five startups under Menara Syariah have signed a memorandum of understanding with the Central Financial X (CFX) exchange to develop an integrated Sharia-compliant digital asset ecosystem. The initiative aims to leverage artificial intelligence and blockchain for asset tokenisation and crypto rating to address public scepticism regarding Sharia-compliant investments. The collaboration seeks to enhance transparency and governance under the supervision of financial authorities.

Global Intellectual Property Investment Reaches 100 Trillion US Dollars, Says Minister

Minister of Law Supratman Andi Agtas revealed that total global investment in intellectual property has reached nearly 100 trillion US dollars, driven by 500 major technology companies. He noted that Indonesia has yet to maximise its potential, with less than 10 percent of patents from the National Research and Innovation Agency (BRIN) being commercialised. The government aims to improve Indonesia's Global Innovation Index ranking and is considering designating intellectual property as a National Strategic Project.

DPR: Sekolah Rakyat Must Open Future for Poor Students

A member of Indonesia's House of Representatives (DPR) has emphasised that the Sekolah Rakyat programme must provide a pathway to the future for underprivileged students. The DPR is committed to ensuring the legality of the school's diplomas so graduates can pursue higher education or employment without administrative barriers. The statement follows a report that students in the programme have achieved hundreds of accolades at regional, national, and international levels during its first year.

Tension During the 2026 Integrated TNI Operation Exercise

The Indonesian National Armed Forces (TNI) conducted a large-scale integrated operation exercise at Todak Beach, Dabo Singkep, Lingga Regency, Riau Islands. The drill showcased the combat capabilities of the Trisila Nusantara Shield across land, sea, and air forces, featuring domestically produced weaponry. Defence Minister Sjafrie Sjamsoeddin observed the exercise, which included the launch of C-705 missiles and the deployment of marine troops.

Coordinating Minister for Political and Security Affairs Asserts Domestic Situation is 'Very Stable' and Under Control

Coordinating Minister for Political and Security Affairs Djamari Chaniago has assured the public that the national security situation remains 'very stable' and under control, despite a surge in hoaxes and disinformation on social media. Following a meeting with top security officials, Djamari refuted alarming online narratives, stating that public activities across the country, including Jakarta, are proceeding normally. He emphasised that the government is not complacent and is continuously working to maintain conducive conditions.

High Waves Force Closure of Access to Komodo and Padar Islands

Maritime authorities have temporarily shut down tourist boat access to Komodo Island and Padar Island in Labuan Bajo due to dangerous sea conditions, with waves reaching up to 2.4 metres. The closure, effective from 6โ€“8 August 2026, aims to protect the safety of tourists and crew, though it significantly impacts the local tourism economy. Industry players are urging accelerated development of mainland attractions to reduce dependency on marine-based tourism during extreme weather.

Indonesian economic growth slows to 5.3% in Q2, but beats forecast

Indonesia's economy expanded by 5.29% in the second quarter, slightly above market expectations but marking the slowest pace in three quarters. A sharp rise in government spending and resilient household consumption supported growth, though economists warn that external pressures and recent interest rate hikes could weigh on future momentum.

3 Million Illegal Cigarettes Destroyed, State Losses Reach Rp4 Billion

Customs and Excise Purwokerto destroyed over 3 million illegal cigarettes seized from various operations in Central Java during 2025-2026. The illicit products, which were not affixed with excise stamps, represented a potential state loss of more than Rp4 billion. Officials emphasised that the destruction is part of ongoing enforcement and a commitment to preventing unfair business competition.

Business Climate and Manufacturing Prospects Remain Expansionary in Q2 2026, BPS Reveals Data

Indonesia's manufacturing sector remained in expansionary territory in the second quarter of 2026, with the Business Conditions and Manufacturing Prospects Index (IKBM) rising to 52.31 from 51.37 in the previous quarter. The increase was driven by gains in orders, production, and stocks, although employment and delivery times continued to face challenges. Separately, BPS reported that the country's year-on-year economic growth slowed to 5.29 per cent in Q2 2026.

AI Could Optimise $1.2 Trillion Zakat and Waqf Potential, Says Expert

Artificial intelligence could significantly enhance the management of global zakat and waqf funds, which have an estimated combined potential exceeding $1.2 trillion annually, according to an expert. Dr. Marjan Muhammad of the ISRA Institute noted that AI can improve data governance, verification, and distribution efficiency. However, she stressed that technology must complement human judgement and be guided by comprehensive sharia governance frameworks.

Eight South Korean Students Detained After Protesting US Base Presence Near Chip Cluster Site

Eight South Korean university students were detained after attempting to enter Osan Air Base to protest the US military's presence, which they argue complicates a planned 800 trillion won semiconductor manufacturing hub in Gwangju. The Progressive Students' Union claims the base's location hinders the major chip project involving SK hynix and Samsung Electronics. Seoul and Washington have reportedly begun consultations on relocating the airfield.

Lentera Anak Says Bigmo Case a Critical Alarm for Child Protection

The Lentera Anak Foundation has stated that the case involving YouTuber Bigmo promoting e-cigarettes with a child is a serious child protection issue, not just a social media ethics violation. The foundation argues that using children in marketing for addictive products constitutes exploitation and violates their right to a safe digital environment. They are urging the Ministry of Health to finalize technical regulations to enforce advertising bans and impose clear sanctions.

Government Launches Free Training Programme for Prospective Indonesian Migrant Workers

The Indonesian Ministry for the Protection of Indonesian Migrant Workers (P2MI) is launching a free upskilling programme for vocational school graduates and the public, fully funded by the state budget. The 'Asta Mandala SMK Go Global' initiative aims to prepare workers for overseas jobs in sectors like manufacturing and caregiving, with a target of placing 500,000 workers by 2029. Registration opens on 12 August, with training covering technical skills, language, and certification to ensure workers use official placement channels.

Drought Crisis Expands in Tangerang, 13 Districts Face Clean Water Shortages

A severe drought has triggered a clean water crisis across 13 districts in Tangerang Regency, affecting over 6,000 residents. The prolonged dry spell, expected to last until October, also threatens agricultural land with potential crop failure. Local authorities are coordinating with the Red Cross, the water utility PDAM, and private companies to distribute emergency water supplies to the impacted communities.

Central Sulawesi Ministry of Law Records IDR 389.1 Million in IP Service Revenue

The Central Sulawesi Regional Office of the Ministry of Law recorded non-tax state revenue (PNBP) of IDR 389.1 million from intellectual property services in the first half of 2026. Copyright applications dominated the filings, reflecting growth in the local creative economy. Officials plan to expand educational outreach to further increase public awareness and revenue contributions.