Indonesian Political, Business & Finance News

Archive: 5 August 2026

Showing 251-300 of 1,487 articles

Finance Ministry and BP BUMN Discuss Tax Relief for SOE Transformation

Indonesia's Ministry of Finance and the Supervisory Board for State-Owned Enterprises (BP BUMN) are discussing tax incentives to accelerate the consolidation and streamlining of state-owned enterprises. Finance Minister Sri Mulyani Indrawati has expressed support for the proposal, which would provide tax relief specifically for consolidation transactions. The policy aims to enhance the efficiency, governance, and long-term competitiveness of SOEs.

BWA Distributes 40,000 Waqf Qurans in West Kalimantan, Synergises with Community Farming Empowerment

The Badan Wakaf Al-Qur'an (BWA) has distributed 40,000 waqf Qurans across five districts and one city in West Kalimantan. The initiative is integrated with a sustainable community empowerment programme that trains local farmers to produce liquid organic fertiliser. Officials report the farming programme has successfully reduced costs and increased harvest yields, continuing the legacy of the late Prof. Budi Harjo.

Finance Minister Signals China's Interest in Extending High-Speed Rail to Surabaya

Finance Minister Purbaya Yudhi Sadewa has indicated that China is willing to continue the Jakarta-Bandung high-speed rail project by extending the line to East Java. The statement aligns with President Prabowo Subianto's earlier vision to expand the network beyond Bandung, ultimately reaching Surabaya and even Banyuwangi at the eastern tip of Java.

West Jakarta Police Foil International Drug Production, Seize Rp119 Billion in Narcotics

The West Jakarta Metro Police have dismantled an international drug production network, seizing precursor chemicals and finished narcotics valued at approximately Rp119 billion. The operation prevented the distribution of 308,000 carisoprodol pills and over a ton of raw materials, which could have affected 3.5 million people. Seven suspects, including a Chinese national, have been arrested and face severe penalties including the death penalty or life imprisonment.

Surabaya DPRD Builds Security Solidarity to Safeguard Economic Hub

The Surabaya Regional House of Representatives (DPRD) is strengthening security collaboration across all community sectors, arguing that the city's role as East Java's economic centre demands more than just law enforcement. DPRD Chairman Syaifudin Zuhri emphasised that maintaining a conducive environment is a shared responsibility to prevent economic disruption. The council is fostering closer informal ties between government, security forces, and the public to enable early detection and mitigation of potential threats.

MPR Speaker Stresses State Policy Guidelines Will Not Regulate Election Technicalities

People's Consultative Assembly (MPR) Speaker Ahmad Muzani has clarified that the proposed Broad Outlines of State Policy (PPHN) will not dictate the technical aspects of elections. He emphasised that the PPHN serves as a philosophical guide for state institutions and is distinct from the technical implementation of democracy. The MPR is currently discussing the most appropriate legal framework for the PPHN, with the option of a constitutional amendment still under consideration.

Satpol PP Reveals Perpetrator Who Felled 10 Trees in Front of Padel Court

The Bandung City Public Order Agency (Satpol PP) has sealed a videotron after a subcontractor admitted to felling 10 trees that were obstructing its view. The perpetrator has been fined Rp 100 million and is required to plant 100 replacement trees. The case highlights enforcement of local regulations protecting public greenery.

KPK Reveals Forestry Ministry Official Received SGD 12,500 from Kuansing Regent

Indonesia's Corruption Eradication Commission (KPK) has uncovered an additional payment of SGD 12,500 from Kuantan Singingi Regent Suhardiman Amby to an official at the Ministry of Forestry. The alleged bribe is linked to the release of limited production forest areas and is believed to have occurred prior to a separate SGD 14,000 payment to the Minister. The KPK is currently investigating the identity of the receiving official and the nature of the earlier meetings.

Danantara targets completion of financial report within 1-2 months

Danantara Indonesia's Chief Operating Officer, Dony Oskaria, stated that the sovereign wealth fund's inaugural consolidated financial report is expected to be finalised within the next one to two months. The delay is attributed to the complex process of consolidating and eliminating transactions from over 1,000 state-owned enterprises. The final report will be audited by the Supreme Audit Agency (BPK).

Indonesia's Economy Grows 5.29% in Q2 2026, Airlangga Says Among Top in ASEAN

Coordinating Minister for Economic Affairs Airlangga Hartarto announced that Indonesia's economy grew by 5.29% in the second quarter of 2026, a performance he described as strong given global pressures. The growth occurred without major domestic events and amidst geopolitical tensions and trade wars. Airlangga highlighted that the 5.45% growth for the first half of the year places Indonesia among the top performers in ASEAN.

Dwindling Springs Leave Hundreds of Families in Grobogan Struggling for Clean Water

Over 500 families in Sugihmanik Village, Grobogan, Central Java, are facing severe clean water shortages as the dry season causes the volume of local springs in the Kendeng Karst Mountains to shrink. Residents report that the water supply from the Sendang Sari and Sendang Mudal springs has been steadily decreasing over the past five years. The situation highlights the growing water security challenges faced by communities dependent on natural springs during prolonged dry periods.

Health Ministry: Nigeria and India Learn Immunisation Strengthening from Indonesia

Delegations from Nigeria and India have observed Indonesia's community health posts, or Posyandu, as part of a global learning exchange aimed at building vaccine confidence. The initiative highlights the role of local health cadres and cross-sector collaboration in boosting immunisation coverage. Indonesian officials hope the forum will inspire other nations while also enriching domestic efforts to achieve complete child immunisation.

Business World Says 5.29 Percent Economic Growth Still Fragile

Indonesia's business association Apindo has described the 5.29 percent economic growth in the second quarter of 2026 as positive but fragile. The real sector faced significant challenges from geopolitical conflicts, rising production costs, and weak export demand. Business leaders are calling for strategic efforts to maintain momentum and ensure more solid, exponential growth.

Bandung Regency's Integrated People's School Begins MPLS as Part of National Programme

The Bandung Regency Government has reaffirmed its commitment to the national People's School programme, designed to expand access to quality education and break the cycle of poverty. The Integrated People's School in Bandung Regency, built on 6.5 hectares with a contract value of approximately IDR 260 billion, has commenced its School Environment Introduction Period (MPLS). Officials from the Presidential Staff Office and the Ministry of Social Affairs highlighted that 94 such schools are ready for MPLS nationwide, aiming to serve as a long-term investment towards the Indonesia Emas 2045 vision.

Teddy Receives Input from Chairul Tanjung on Strategic Economic Issues

Cabinet Secretary Teddy Indra Wijaya met with prominent businessman Chairul Tanjung to discuss strategic economic issues, including strengthening the banking sector and fostering young entrepreneurs. The nearly two-hour meeting at the Cabinet Secretariat building underscored the government's commitment to close collaboration with the business community. Teddy emphasised that input from business leaders is crucial for formulating policies that deliver tangible benefits to the public.

Data Centre Power Demand Increases

The expansion of digital infrastructure in Indonesia is driving greater demand for reliable power systems to maintain data centre uptime, particularly during grid outages. PT Traktor Nusantara highlighted the need for advanced monitoring and backup generators at a recent industry conference. The trend is expected to accelerate with the growth of cloud computing, artificial intelligence, and digital transactions.

Penghulu Must Act as Family Consultants, Not Just Marriage Officiants: Ministry

The Ministry of Religious Affairs has urged penghulu (marriage officiants) to expand their role beyond solemnising weddings to become family consultants, aiming to strengthen family resilience and prevent divorce. Secretary General Kamaruddin Amin stated that this diversification of duties is part of the broader function of the Office of Religious Affairs (KUA) as a frontline service for the community. The initiative seeks to transform the KUA's image from merely an 'office of romance' to a comprehensive centre for religious affairs, including family guidance.

Indonesia Targets Trade Surplus with Thailand by Boosting Exports

Indonesia's Trade Minister Budi Santoso aims to reverse the trade deficit with Thailand and achieve a surplus by intensifying export promotion. The government plans to leverage the Joint Trade Commission forum to identify Thai market needs, with fertiliser identified as a key product for increased exports. This push follows a positive five-year trend where Indonesian exports to Thailand grew 3.7% while imports declined.

Rural Poverty in NTB Rises, Rice and Cigarettes Remain Key Contributors

While overall poverty in West Nusa Tenggara (NTB) declined in March 2026, the rural poverty rate saw a slight increase, with the number of poor residents rising. The Central Statistics Agency (BPS) reported that rice and kretek cigarettes remain the dominant commodities contributing to the poverty line in both urban and rural areas. The overall poverty line is heavily weighted towards food expenditure, with rice alone accounting for over 29 percent in rural villages.

Surabaya students enthusiastic as Mayor opens 'Sekolah Rakyat' orientation

Surabaya's Mayor Eri Cahyadi welcomed 270 new students to the Sekolah Rakyat orientation, a school designed to provide education for underprivileged children. He highlighted President Prabowo Subianto's focus on building character and a 'fighter's spirit' among the students.

Indonesia expands SMK Go Global program to curb illegal overseas jobs

The Indonesian government is expanding its 'SMK Go Global' vocational program to provide legal pathways for migrant workers, aiming to reduce illegal placements abroad. The initiative offers free language training, technical instruction, and state-funded certification, alongside microloans of up to Rp100 million through the People's Business Credit scheme. The Ministry for the Protection of Indonesian Migrant Workers is also intensifying cyber patrols and law enforcement against unregistered agencies and human trafficking networks.

7 Facts in the Depok Mutilation Case: Chronology and Arrest of the Perpetrator

Police have arrested a suspect in the gruesome mutilation of Kunaefi, a 51-year-old man whose bound body was found in a sack in Depok, West Java. The victim was reported missing by his wife in late July before his partial remains were discovered by residents attempting to burn what they thought was rubbish. The suspect, identified as 26-year-old Saepul, was apprehended in Banten while attempting to flee, and investigators are still probing the motive behind the murder.

Bank Permata Projects Indonesia's 2026 Economic Growth at 5.26 Percent

Bank Permata economist Faisal Rachmat forecasts Indonesia's economy will grow by 5.26 percent in 2026, driven by strong domestic demand and expansionary fiscal policy. However, he warns that global external pressures, including trade wars and geopolitical tensions, could widen the current account deficit and weaken the rupiah. The bank also sees a possibility that Bank Indonesia may tighten its monetary policy, including raising the BI-Rate, to maintain stability.

Indonesia's Economy Grows 5.29% in Q2 2026, Manufacturing and Investment Surge

Indonesia's economy expanded by 5.29% year-on-year in the second quarter of 2026, driven by strong performance in manufacturing, trade, and construction. Household consumption and government spending, including the Free Nutritious Meals programme, also contributed to the growth, with Bali and Nusa Tenggara recording the highest regional growth at 6.10%.

132,272 Indonesian Families Graduate from Social Assistance Programmes

Social Affairs Minister Saifullah Yusuf announced that 132,272 beneficiary families have graduated from government social assistance programmes such as BPNT and PKH due to improved economic conditions. The graduation, based on updated data from Statistics Indonesia, reflects better targeting under the strengthened National Integrated Socio-Economic Data system. The government hopes this progress will support its broader goal of sustainable poverty reduction.

Police Arrest Suspect for Theft at West Bandung Elementary School

Police in West Bandung have arrested a man suspected of breaking into SDN Cisarongge and stealing electronic equipment worth an estimated Rp10 million. The suspect, identified as 24-year-old Solehudin, allegedly forced entry into the teachers' room in the early hours and made off with a laptop, speakers, and a CCTV unit. Authorities are continuing their investigation and have urged the public to remain vigilant against criminal activity.

Bekasi Agriculture Office Implements PMAS Programme to Boost Farmers' Welfare

The Bekasi District Agriculture Office has launched the Modern Agriculture System (PMAS) programme in Bojongmangu to increase rice productivity and farmer welfare. The initiative, which involves direct seeding technology and soil treatment, aims to double the current average harvest from 5 tonnes to 10 tonnes per hectare. The programme serves as a pilot project expected to be expanded to other villages, supporting national food self-sufficiency goals.

Kebumen Police on Forest Fire Alert, BPBD Distributes Water as Dry Season Bites

Police in Kebumen, Central Java, have declared a state of readiness for forest and land fires as the dry season intensifies, while the local disaster mitigation agency has begun distributing tens of thousands of litres of clean water to drought-stricken villages. The measures come as rising temperatures and a prolonged dry spell, forecast to last until November, heighten the risk of fires and water shortages across the region.

Witness in Former Banjarmasin Tax Office Chief Bribery Case Returns Rp 9.5 Billion

A witness in the bribery case involving the former head of the Banjarmasin Pratama Tax Office has returned USD 530,000, equivalent to approximately Rp 9.5 billion, to the Corruption Eradication Commission (KPK). The funds are believed to be linked to a tax restitution scheme at the office. The KPK is continuing its investigation, which has expanded to include three separate warrants related to bribery, gratuities, and money laundering.

Lampung High Prosecutor's Office Optimises Restorative Justice Mechanism

The Lampung High Prosecutor's Office (Kejati) is intensifying its use of restorative justice, resolving 136 cases in 2025 and 52 cases by July 2026. The programme goes beyond halting prosecutions by providing skills training and counselling to offenders in cooperation with local hospitals. The office also reported handling thousands of cases from investigation to execution, while pursuing 156 appeals and 96 cassations to ensure justice.

Apple May Debut AirPods with Camera Alongside iPhone 18 Pro

Apple is reportedly planning to launch AirPods equipped with a camera, potentially alongside the iPhone 18 Pro in September 2026. The project, codenamed B798, was previously rumoured to be delayed but may now align with Apple's typical autumn release cycle. The camera is expected to function as a low-resolution visual sensor to enhance Siri's environmental awareness rather than for conventional photography.

Golkar Youth Wing Rewards Jakarta Branch with Vehicle for Mosque Cleaning After Recruiting 10,000 Cadres

The central board of Golkar's youth wing (PP AMPG) has provided a special vehicle for cleaning places of worship to its Jakarta branch as a reward for successfully recruiting 10,000 young members. The organisation's chairman stated that this initiative is part of a broader national target to recruit 2 million new cadres. The programme aims to combine membership growth with tangible social action, encouraging young members to engage directly with communities.

OpenAI Pays Rp51 Billion Fine for Discriminating Against US Workers

OpenAI has agreed to pay a US$3.2 million fine to settle charges that it discriminated against American workers in its hiring practices. The US Department of Justice found the company prioritised foreign visa holders for certain positions and used tactics to deter domestic applicants. This marks the 13th settlement under a revived DOJ programme targeting citizenship status discrimination since 2025.

Minister Wihaji Reviews Family Assistance Team Performance in Central Bangka

Minister of Population and Family Development Wihaji visited Central Bangka Regency to evaluate the performance of Family Assistance Teams (TPK) tasked with supporting vulnerable families. The minister assessed the enthusiasm of over 1,000 local TPK members and reiterated their crucial role in assisting families at risk of stunting. The visit aimed to ensure the government's frontline assistance programme operates optimally and sustainably to improve family quality.

Deputy Minister Urges Papua Local Governments to Expedite Special Autonomy Fund Disbursement

Deputy Minister of Home Affairs Ribka Haluk has called on all regional governments in Papua to accelerate the disbursement of the second phase of the 2026 Special Autonomy (Otsus) Fund. While acknowledging improvements in the first phase, she stressed that several regions are still facing administrative hurdles and must complete the process immediately. Haluk also emphasised the need for stronger oversight and transparency, in line with commitments made with the Corruption Eradication Commission (KPK), to ensure the funds genuinely benefit the community.

Government Slashes Trademark Registration Fee for MSMEs to Rp500,000

The Indonesian government has introduced a special trademark registration tariff of Rp500,000 for micro, small, and medium enterprises (MSMEs), significantly lower than the standard Rp2.8 million fee. Law Minister Supratman Andi Agtas stated this initiative is part of a broader effort to build an intellectual property protection ecosystem and boost the creative economy, which currently contributes Rp1,150 trillion to the national GDP.

Berau Police Arrest Drug Dealer, Seize 10 Packages of Meth Hidden in Bamboo

Police in Berau, East Kalimantan, have arrested a 38-year-old man for drug trafficking after seizing 10 packages of methamphetamine concealed inside a piece of bamboo. The arrest was made following a tip-off from residents in Kampung Sambakungan who reported suspicious activity. The suspect faces life imprisonment or a sentence of up to 20 years under Indonesia's narcotics laws.

Tasikmalaya BPBD Declares Emergency Drought Status, Supplies Water to 86 Villages

The Regional Disaster Management Agency (BPBD) of Tasikmalaya Regency is distributing clean water to 86 villages across 19 sub-districts as the dry season intensifies. Officials report that drought has caused widespread well depletion, leading to a clean water crisis and significant agricultural failure, with 80% of rice fields experiencing crop failure. The emergency response involves collaboration with the military, police, and local water utility Perumda Tirta Sukapura.

Before Being Found Mutilated in Depok, Kunaefi Was Reported Missing by His Wife

The mutilated body of Kunaefi, discovered in a sack in Pancoran Mas, Depok, was identified after his wife reported him missing. Police have arrested a suspect, SA, who allegedly met the victim online, murdered him following a dispute, and then dismembered the body. The suspect was apprehended in Pandeglang, Banten, and is also accused of stealing the victim's motorcycle.

Bromo Forest Fire Spreads, 7.9 Hectares Destroyed and Access Restricted

A forest and land fire on Mount Bromo has expanded to 7.9 hectares, spreading from Lumajang Regency to Probolinggo Regency. Firefighters are struggling to contain the blaze due to steep terrain and strong winds, prompting the closure of several tourist access points to the national park. Authorities are focusing on preventing the fire from spreading further into the Bromo Tengger Semeru National Park.

Government Begins Reconstruction of Proclamation House

The Indonesian government has commenced the reconstruction of the historic house where Soekarno and Hatta read the Proclamation of Independence in 1945. The building on Jalan Pegangsaan Timur, demolished in 1960, will be rebuilt as an exact replica and transformed into a museum. The initiative aims to revive national memory and educate younger generations, with the Culture Minister noting a surge in enthusiasm for museums among Gen Z.

Bromo Fire Spreads Towards Malang, Three Tourist Access Routes Closed

A forest fire in the Bromo Tengger Semeru National Park (TNBTS) that started in Lumajang Regency has spread towards Malang Regency, reaching the Jemplang area. Joint teams are battling the blaze on the ground by creating firebreaks and spraying water. As a safety precaution, authorities have closed three tourist access points to Mount Bromo until further notice.

Why People Easily Write Hateful Comments on Social Media

A psychologist explains that the online disinhibition effect, reduced empathy due to lack of face-to-face interaction, and bandwagon behaviour driven by group dynamics and algorithms contribute to the prevalence of hateful comments on social media. The expert warns that such comments can severely impact victims' self-esteem and psychological well-being, particularly for those already suffering from physical illness, potentially leading to social withdrawal and isolation.

Fire at Cikini Central Shop-House Building Suspected to Have Originated on Third Floor

A fire broke out at the Central shop-house building on Jalan Cikini Raya, Menteng, Central Jakarta, on Wednesday afternoon. The blaze is suspected to have started on the third floor of the five-storey structure, but the exact cause remains under investigation. No casualties were reported, and firefighters managed to extinguish the fire after deploying 22 units and 110 personnel.

Iran Denies Negotiating with US, Confirms Talks with Oman on Strait of Hormuz

Iran has refuted reports of direct negotiations with the United States, clarifying that its discussions are solely with Oman regarding the future management of the Strait of Hormuz. Tehran insists the southern route remains illegal and unsafe, attributing the strait's current status to US non-compliance. A potential agreement in Muscat would focus on a 'middle corridor' respecting Iranian sovereignty, but Iran maintains the strait will not fully reopen until its demands are met.

Iran Ready to Resume War Against US if Negotiations Fail

Iran's military has declared its readiness to resume hostilities with the United States should diplomatic efforts collapse, citing the rehabilitation of its armed forces despite ongoing aerial bombardments. The warning comes amid US signals of a potential deal to reopen the Strait of Hormuz, though Tehran denies any direct negotiations. Iran claims it has intensified military preparations, including boosting drone production and maintaining its missile stockpile, while its Revolutionary Guards tighten control over the strategic waterway.

Social Affairs Minister urges school heads to complete MPLS and student data collection

Social Affairs Minister Saifullah Yusuf has instructed all Sekolah Rakyat headmasters to ensure the smooth completion of the new student orientation period (MPLS) and to properly document baseline student data. He emphasised the importance of maintaining state-owned facilities and strengthening public documentation of school activities. The directive comes as part of efforts to prepare Indonesia's 'golden generation', with headmasters reporting challenges including student health issues during the adaptation period.

IndoBeauty Expo 2026 Opens to Boost National Beauty Industry Competitiveness

The IndoBeauty Expo 2026 has officially opened in Jakarta, aiming to strengthen the national beauty industry's global competitiveness. The event features 65 exhibitors from various countries and includes business matching sessions, workshops, and competitions. Organisers hope the expo will foster innovation, expand market access, and create strategic partnerships for Indonesian beauty businesses.

Bahlil Appoints New Heads for Geological Agency, Lemigas, and BPMA Aceh

Minister of Energy and Mineral Resources Bahlil Lahadalia inaugurated several high-ranking officials, including a new Head of the Geological Agency and Head of Lemigas, to strengthen the management of Indonesia's natural resources. The appointments are aimed at improving the documentation of mineral wealth and fulfilling President Prabowo Subianto's mandate on oil and gas procurement. A new head was also appointed for the Aceh Oil and Gas Management Agency (BPMA), which Bahlil noted receives special treatment due to the region's special autonomy status.

Disillusioned with Democrats and Republicans, American Voters Fuel Surge in Independent Candidates

Growing dissatisfaction with the two-party system in the United States is driving a record number of independent candidates to run for Congress in 2026. With 45% of Americans now identifying as independents, figures like Montana's Seth Bodnar and Nebraska's Dan Osborn are testing whether they can overcome the structural advantages of the major parties. Both candidates are campaigning in traditionally Republican states, leveraging local discontent with trade tariffs and fuel costs to appeal to voters who feel abandoned by the political establishment.