Indonesian Political, Business & Finance News

Archive: 5 August 2026

Showing 1,101-1,150 of 1,487 articles

Banyumas Regency Government Strives to Keep Trans Banyumas Operational

The Banyumas Regency administration is scrambling to secure alternative funding for the Trans Banyumas bus service after the central government halted its Buy The Service (BTS) subsidy. With the regional budget under strain, the current operational funds are only sufficient until August 2026. The local government is discussing new financing schemes with the regional parliament and exploring non-fare revenue streams, such as bus advertising, to maintain the highly popular public transport system.

KAI Transports 13,920 Tonnes of Fertiliser up to July 2026, Strengthening Agricultural Supply Chain

State railway operator PT KAI transported 13,920 tonnes of fertiliser between January and July 2026, a 2.43% increase year-on-year, with July volumes surging 400% to 1,800 tonnes. The company emphasised its role in supporting national food security and stabilising rice prices by ensuring reliable logistics for agricultural inputs. KAI's management highlighted the need for synergy across government, state-owned enterprises, and farmers to maintain a smooth distribution chain.

BMKG Update: M6.5 Earthquake in North Sulawesi Triggered by Subduction, Causes Wall Vibrations

The Meteorology, Climatology and Geophysics Agency (BMKG) has confirmed that a shallow M6.5 earthquake in North Sulawesi was caused by subduction activity in the Cotabato Trench. The tremor, felt with an intensity that caused walls to vibrate and windows to rattle, was located northwest of the Sangihe Islands. Authorities reported two aftershocks and confirmed there is no tsunami potential, urging residents to remain calm and avoid damaged buildings.

Bareskrim Transfers Drug Suspect 'The Doctor' to South Jakarta Prosecutor's Office

The Indonesian National Police's Criminal Investigation Agency (Bareskrim) has handed over Andre Fernando Tjandra, a suspected drug trafficker known as 'The Doctor', to the South Jakarta District Prosecutor's Office. The transfer follows the completion of the case file, which was declared legally sufficient for prosecution. The suspect is believed to have played a central role in an international narcotics distribution network.

DPD RI to Build Office in Serang, Banten, Ready to Accommodate Citizens' Aspirations

The Regional Representative Council (DPD RI) has commenced construction of a new representative office in Serang, Banten, aimed at facilitating public access to convey regional aspirations. The groundbreaking ceremony was attended by DPD leadership and the Governor of Banten, with the project funded by the provincial budget on land granted by the Banten Provincial Government. Officials emphasised the office would serve as a formal channel for public grievances and strengthen the institution's role in advocating for regional interests.

Untung Jawa Island Holds Competitions to Celebrate Indonesia's Independence Day

The Untung Jawa Island sub-district government has officially opened a series of competitions to celebrate the 81st anniversary of the Republic of Indonesia. The events aim to strengthen community unity, mutual cooperation, and nationalistic spirit among residents. Organisers hope the activities, designed for all age groups, will serve as a joyful people's party that reinforces social bonds.

Papua Provincial Government Records 50.65% of SME Transactions via e-Catalogue

The Papua Provincial Government reported that transactions by Micro, Small Enterprises and Cooperatives (UMK-Koperasi) reached Rp51.63 billion through its electronic catalogue in the first half of 2026, accounting for 50.65% of total procurement. This milestone indicates that affirmative action policies for local businesses are yielding tangible results, with local products like Papuan batik and livestock now being marketed digitally. The government aims to expand access further by facilitating product registration and providing technical guidance to meet required standards.

US Revokes Brazilian Ambassador's Visa Amid Diplomatic Dispute

The United States has revoked the visa of Brazil's ambassador in a tit-for-tat move, escalating a diplomatic row. The action was taken in response to Brazil's refusal to grant visas to two US diplomats and its delay in approving Washington's nominee for ambassador. A senior State Department official indicated the visa could be restored once the situation is resolved.

Indonesian Air Force Continues Modernisation with New Fighter Jets and Missile Systems

The Indonesian Air Force (TNI AU) is pressing ahead with a significant modernisation of its primary weapon systems, backed by President Prabowo Subianto. New acquisitions include Rafale fighter jets, A400M transport aircraft, and advanced radar installations aimed at eliminating surveillance blind spots. The upgrades are intended to bolster national air defence and eventually provide the Air Force with a more autonomous monitoring capability.

Customer Focus: KAI Incorporates Passenger Feedback to Improve Services; H1 2026 CSI Reaches 4.53

PT Kereta Api Indonesia (KAI) reported a Customer Satisfaction Index of 4.53 out of 5 for the first half of 2026, a slight increase from the previous year. The state-owned railway operator analysed 2.21 million customer interactions and surveyed 3,160 passengers to guide service improvements. Key areas identified for enhancement include station waiting rooms, boarding areas, and onboard toilets.

The Discovery of a Body in a Sack in Depok: New Facts Emerge

The discovery of a man's body inside a sack in Pancoran Mas, Depok, has led to a murder investigation after the remains were found in a non-intact state. Police have since identified the victim and arrested a suspect, though the motive is still under investigation. The body was initially mistaken for rubbish and only discovered after a resident attempted to burn the sack.

Japan Strengthens Military, Kim Jong Un's Sister Furious

Kim Yo Jong, the sister of North Korean leader Kim Jong Un, has sharply criticised Japan's military build-up, accusing Tokyo of transforming into a 'war state'. Her remarks follow Japan's increased defence spending, missile deployments, and a shift away from its post-WWII pacifist stance amid perceived threats from China, Russia, and North Korea. Pyongyang warned it would prepare additional military options in response to Japan's evolving defence posture.

BPS Announces Q2 2026 Economic Growth Slows to 5.29 Percent

Indonesia's economy expanded by 5.29 percent year-on-year in the second quarter of 2026, a deceleration from the previous quarter's 5.61 percent but an improvement over the same period last year. The slowdown was influenced by a sluggish global economy and mixed performances among key trading partners. Domestically, growth was supported by robust consumer spending in restaurants, hotels, and e-commerce, alongside the disbursement of civil servant bonuses.

China Launches Mandatory Safety Standards for Autonomous Driving Systems

China has introduced compulsory national safety standards for autonomous driving systems, set to take effect in July 2027. The regulations target Level 3 and Level 4 vehicles, requiring manufacturers to enhance safety mechanisms across the product lifecycle and improve human-machine interaction protocols. The move aims to strengthen market access management and establish a robust regulatory framework for intelligent connected vehicles.

Gold Price Today 5 August 2026: Antam Continues to Slide, Global Products Vary

The price of gold bullion produced by PT Aneka Tambang (Antam) fell by Rp4,000 to Rp2,599,000 per gram on Wednesday. Global gold prices showed mixed movements, with spot gold edging higher as the US dollar weakened, while futures declined ahead of key US employment data.

Indonesia's Unemployment Rate Falls to 4.65% in May 2026

Indonesia's open unemployment rate fell to 4.65% in May 2026, with the number of unemployed people declining by 24,000 to 7.22 million compared to February. The total labour force increased by 497,000 to 155.41 million, while the number of employed workers rose by 522,000 to 148.19 million.

Fourth heatwave of the year triggers emergency response in Italy

Italy is grappling with its fourth major heatwave of the summer, with temperatures exceeding 40 degrees Celsius and a record number of cities placed under the highest heat alert. The extreme conditions are raising significant concerns over public health, wildfires, and agricultural output, particularly in the crucial Po River basin. Authorities have escalated emergency measures, including health advisories and water supply interventions, as experts link the prolonged and intense heat to climate change.

Internet Quota Will Not Expire and Can Be Used Up, Here's What Operators Say

Indonesia's Constitutional Court has ruled that prepaid internet quota must not expire and can be used until depleted without additional charges. Major operators Indosat and Telkomsel have responded by stating they respect the ruling and are evaluating their systems to offer more flexibility, including rollover and accumulation features.

North Kalimantan offers strategic investment opportunities to dozens of ambassadors

North Kalimantan Governor Zainal A. Paliwang has presented a range of strategic investment opportunities to ambassadors and representatives from countries including the Netherlands, Australia, and China. The province is promoting sectors such as green energy, infrastructure, and industrial downstreaming. The governor emphasised that as a new province, North Kalimantan offers a first-mover advantage with full government support for serious investors.

Customs Foils Smuggling of Dismantled Harley-Davidsons in Container from China

Customs officials at Tanjung Priok Port have thwarted an attempt to smuggle five dismantled used Harley-Davidson motorcycles from China. The illicit shipment was detected through X-ray scanning anomalies and subsequent physical inspection. The seizure underscores the government's commitment to enforcing trade regulations and protecting domestic industry from illegal imports.

Expert proposes including environmental crime in Asset Forfeiture Bill

An advisor to Indonesia's Environment Minister has proposed that green financial crimes be incorporated into the draft Asset Forfeiture Bill, citing illicit financial flows from environmental offences valued at Rp994 trillion. The proposal aims to strengthen law enforcement and recover state losses by linking environmental destruction to illicit financial gains. The advisor also suggested establishing a dedicated task force involving multiple agencies, including the PPATK and KPK, to handle prevention, enforcement, and environmental restoration.

Ministry Strengthens Family Role to Create Safe Spaces for Children

The Ministry of Population and Family Development is reinforcing the family's role as the primary environment for child-rearing to establish safe spaces for children amid digital-era challenges. Minister Wihaji highlighted that the 'new civilisation' demands parents adapt their caregiving patterns, especially with the pervasive influence of gadgets. The initiative is part of a broader national movement involving six ministries aimed at reducing violence against children across family, educational, public, and digital domains.

Extreme Heat Causes Danube Water Levels to Recede, Disrupting Cargo Shipping

Cargo shipping along the Austrian section of the Danube River has virtually ground to a halt due to extremely low water levels caused by a severe heatwave. The Austrian government reports that freight vessels are being forced to significantly reduce their loads, making road and rail transport more economically viable. The situation, which began unusually early this year, is also impacting cruise traffic and has been compared to the severe droughts of 2003 and 2018.

US Revokes Brazilian Ambassador's Visa Amid Diplomatic Dispute

The United States has revoked the visa of Brazil's ambassador to Washington following Brazil's failure to grant diplomatic approval for President Trump's nominee. The move comes after Brazil also reportedly denied visas to two US diplomats ahead of its October presidential election. The US State Department indicated the visa would be restored once the diplomatic issues are resolved.

Home Minister Tito Comments After Regional Heads Caught in KPK Sting Operations

Home Minister Tito Karnavian has stressed that the personal integrity of regional heads is crucial for clean governance, following recent sting operations by the Corruption Eradication Commission (KPK). Speaking at a coordination meeting in Surabaya, he acknowledged that while oversight systems are being strengthened, preventing corruption ultimately depends on the individual commitment of each leader. The government is conducting a series of anti-corruption briefings across ten regional clusters to raise awareness among local officials.

Shallow M6.4 Earthquake Jolts North Sulawesi

A strong, shallow earthquake measuring magnitude 6.4 struck North Sulawesi on Wednesday morning. The tremor was centred 221 kilometres northwest of Pulau Karatung at a depth of 10 kilometres, with authorities confirming there is no tsunami threat.

Indonesia's Industrial Sector Grows in Q2 2026, Mining Contracts

Indonesia's industrial sector expanded in the second quarter of 2026, buoyed by overall economic growth of 5.29% year-on-year. The electricity and gas procurement sector led the gains with a 10.8% surge, while the mining sector was the sole laggard, contracting by 1.64% due to reduced metal ore output and the ongoing impact of a landslide at the Grasberg mine. Other strong performers included accommodation and food services, boosted by higher hotel occupancy and the free nutritious meal programme.

Bappenas: Indonesia Has Strong Foundation to Develop Tokenisation Ecosystem

Indonesia's Minister of National Development Planning asserts the country possesses robust fundamentals, including high internet penetration and a booming digital economy, to advance real-world asset tokenisation. The government views tokenisation as a strategic tool to broaden investment access and finance productive sectors, aiming to support national economic growth targets. Emphasis was placed on the need for comprehensive governance, regulatory harmonisation, and cross-sector collaboration to ensure the ecosystem develops securely and sustainably.

Kimia Farma posts unaudited net profit of Rp54.07 billion

Indonesian state-owned pharmaceutical company PT Kimia Farma (Persero) Tbk reported an unaudited net profit of Rp54.07 billion for the first half of 2026, reversing a net loss of Rp135.61 billion in the same period last year. The turnaround was driven by a 7.6% increase in net sales to Rp4.70 trillion and a 111.3% surge in operating profit. The company noted that geopolitical tensions in the Middle East continue to pressure costs through higher prices for imported raw and packaging materials.

SPPG Volunteer in Kuningan Gored While Preventing Wild Boar from Attacking Children

A volunteer for the government's nutritional fulfilment service unit (SPPG) in Kuningan, West Java, was injured after being gored by a large wild boar while trying to protect children. Anasikin, 28, attempted to block the animal after it fled a hunt and charged into his village, sustaining a bite wound to his foot. The incident highlights the risks faced by community volunteers in rural areas, though his condition is now reported to be improving.

Indonesia's Q2-2026 Economic Growth Slows to 5.29 Percent

Indonesia's economy expanded by 5.29 percent year-on-year in the second quarter of 2026, according to the Central Statistics Agency (BPS). This marks a deceleration from the 5.61 percent growth recorded in the previous quarter. The figure aligns with government projections, which anticipated growth above 5 percent driven by investment and fiscal incentives.

Emotional Reunion for Couple and Two Children After Jumping from KM Mutiara Sentosa

A family of four separated during the harrowing fire aboard the KM Mutiara Sentosa 2 has been reunited at a Surabaya hospital. The father jumped into the sea with the toddler, while the mother escaped with the elder child, leading to their rescue by different vessels. The emotional reunion occurred in the hospital ward, bringing comfort to the young child after the traumatic incident.

Indonesia's Economy Grows 5.29%, Tops G20 Rankings Ahead of China and US

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, placing it at the top of the provisional G20 growth rankings. The performance surpassed market consensus and outpaced major economies including Saudi Arabia, China, and the United States. The country's two-year average growth rate also significantly exceeds the G20 average.

Brazil downgrades diplomatic relations with Argentina

Brazil has downgraded its diplomatic representation in Argentina to the level of chargé d'affaires following critical remarks by Argentine President Javier Milei about President Lula da Silva. The Brazilian government has decided not to return its ambassador to Buenos Aires and has lodged a formal protest. The move comes after Milei attended a political convention in São Paulo, where he endorsed an opposition candidate and attacked Brazil's Supreme Court.

Customs Foils Smuggling of Used Harley Davidson Motorcycles from China

Tanjung Priok Customs has thwarted an attempt to smuggle five disassembled used Harley-Davidson motorcycles and 20 used frames from China. The goods were falsely declared as used motorcycle parts, violating Indonesia's trade regulations which strictly prohibit the import of used motor vehicles. The seizure was made possible through the use of advanced container scanning technology at the port.

BNI Posts Rp10.8 Trillion Profit in First Half of 2026

PT Bank Negara Indonesia (BNI) reported a net profit of Rp10.8 trillion for the first half of 2026, a 5.94% year-on-year increase. The state-owned bank saw robust credit growth of 24.4% and a significant rise in third-party funds, although its net interest margin contracted. The results reflect strong intermediation performance despite a slight uptick in operational costs.

Police Arrest Suspected Drug Dealer in Bima's Pasar Tente

Police in Bima, West Nusa Tenggara, have arrested a 43-year-old man suspected of dealing methamphetamine in the Pasar Tente complex. The arrest followed a public tip-off about rampant drug activity in the area. Authorities seized ready-to-sell methamphetamine, drug paraphernalia, and over Rp 23 million in cash.

Household Consumption Sees Positive Growth in Q2 2026

Indonesia's household consumption remained the primary driver of economic growth in the second quarter of 2026, expanding by 2.67%. The growth was largely fuelled by increased spending during the holiday season, particularly in the restaurant, hotel, transport, and communication sectors. Overall, the Indonesian economy grew by 5.29% year-on-year in Q2 2026.

Mutilation Victim Kunaefi in Depok Had Been Reported Missing by Wife

Police have identified the victim of a mutilation case in Pancoran Mas, Depok, as Kunaefi, a resident of Cipayung. His wife had reported him missing a day after he failed to return home, before his dismembered remains were discovered in a sack by locals. The suspect, who met the victim via social media, was arrested in Pandeglang, Banten, following an investigation.

Trade Minister Boosts Indonesia-Thailand Trade with Export Diversification

Trade Minister Budi Santoso has affirmed the government's commitment to strengthening bilateral trade with Thailand through market access expansion and export diversification. The strategy aims to increase trade value, which reached US$17.7 billion in 2025, by integrating Indonesian businesses, particularly MSMEs, into global value chains. Amid global economic uncertainty, Indonesia is positioning itself as a strategic hub for production, investment, and exports by leveraging its large domestic market and natural resources.

CENTCOM Claims It Has Escorted 1,000 Ships Through the Strait of Hormuz

The United States Central Command (CENTCOM) has asserted that its forces have facilitated the safe passage of over 1,000 commercial vessels through the Strait of Hormuz in the past three months. This claim comes amid escalating tensions and a breakdown of a ceasefire agreement between the US and Iran. The strategic waterway has become a flashpoint, with Iran announcing its closure until what it terms American interference in the region ends.

Indonesia's Economy Grows 5.2% in Q2-2026, Here Are the Drivers

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, according to the Central Statistics Agency (BPS). Household consumption remained the primary engine of growth, contributing over half of the gross domestic product. Investment and exports also recorded solid gains, reinforcing the country's steady economic momentum.

Indonesian Economy Grows 5.29%, IHSG Immediately Strengthens 0.62%

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, surpassing market expectations of 5.12%. The positive data prompted an immediate 0.62% rise in the Jakarta Composite Index (IHSG), with the property and raw materials sectors leading the gains. Market participants are now assessing whether this growth momentum can sustain optimism for domestic consumption and corporate performance in the second half of the year.

Registration for 81st Independence Day Ceremony at Merdeka Palace Fills Up on First Day

Online registration for the public to attend the 81st Indonesian Independence Day ceremony at Merdeka Palace opened on 5 August 2026 and was fully booked within hours. The high demand caused the registration portal to display a 'full' status and temporarily restrict access. The State Secretariat has allocated 8,100 invitations, with registration remaining open until 7 August.

Government Plans to Make BPJS Kesehatan Mandatory for Passport Applications

The Indonesian government intends to make active BPJS Kesehatan membership a compulsory requirement for various public services, including passport and driving licence applications. The policy aims to compel financially capable citizens who have opted out of the National Health Insurance (JKN) scheme to resume paying their premiums. Officials argue the measure is necessary to uphold the programme's mutual cooperation principle and ensure its financial sustainability.

WHO says risk of Bourbon virus spread in US remains low

The World Health Organization has assessed the public health risk from the rare Bourbon virus in the United States as low, citing a very small number of reported cases and no evidence of widespread community transmission. The tick-borne virus, first identified in 2014, was recently detected in New York State, though no vaccine or specific diagnostic test is currently available.

Minister: BTN Leads Subsidised Mortgage Distribution Until July 2026

State-owned Bank BTN has been identified as the top distributor of subsidised mortgages (KPR FLPP) in Indonesia, with 55,766 units financed by late July 2026. The achievement was highlighted during a mass mortgage signing event led by President Prabowo Subianto in Central Java. The government is urging stronger collaboration across the housing ecosystem to expand access to affordable homes.

Tangerang Man Forced to Masturbate and Recorded by Boss, Video Distributed as Threat

A man in Tangerang was allegedly assaulted and forced to masturbate by his employer and colleagues after attempting to resign from a mobile bank. The perpetrators recorded the act and distributed the video via WhatsApp to threaten the victim and his family. Five suspects have been reported to the police, but they remain at large, leaving the victim and his family in fear.

Bali Governor Koster Meets Jakarta Counterpart to Study Innovative Financing Schemes

Bali Governor Wayan Koster has consulted with Jakarta Governor Pramono Anung to explore innovative financing methods, including the issuance of regional bonds, to accelerate infrastructure development on the island. The meeting, prompted by the Home Affairs Minister, also covered the utilisation of building floor coefficient regulations and public-private partnerships. The Balinese administration aims to adapt Jakarta's strategies to address infrastructure challenges, particularly traffic congestion in the tourism-centric Badung regency.

Indonesian Economy Grows 5.29% in Q2-2026, Rupiah Strengthens to Rp17,905/US$

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, surpassing market expectations of 5.12%. The stronger-than-expected GDP data boosted the rupiah, which appreciated to Rp17,905 against the US dollar. The growth was driven by solid domestic performance despite global economic pressures.