Indonesian Political, Business & Finance News

Archive: 7 August 2026

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PT Futai Case Becomes Evaluation, BKPM Urges Bitung SEZ to Better Protect Investors

The Investment Ministry has called on North Sulawesi's provincial and Bitung city governments to strengthen legal certainty within the Bitung Special Economic Zone following the PT Futai incident. A director at the ministry stated that the alleged arson at the recycled paper factory highlights the need to resolve land and community relocation issues before they deter investment. The official noted that investment realisation in the zone remains relatively low at around Rp6 trillion compared to other SEZs like Batam.

Land Subsidence and High Tides Cause Seawall Leak in Muara Baru

A seawall in Muara Baru, North Jakarta, is leaking due to high seawater pressure and land subsidence, causing flooding on a local road. The local water resources agency is creating temporary drainage channels while seeking broader stakeholder support for a permanent fix. The Governor of Jakarta has ordered monitoring to prevent further damage.

UN Slams US Sanctions on Cuba as Attempt to Subvert Constitutional Order

United Nations human rights experts have condemned the latest US sanctions against Cuba, describing them as an unlawful attempt to alter the constitutional order of a sovereign state through threats and coercion. The experts warned that the resulting humanitarian crisis threatens fundamental rights to health, life, and food, and urged the international community to act to prevent Cuba from becoming a 'silent Gaza'. They called on Washington to cease all actions violating Cuba's sovereignty and to repeal policies inconsistent with international law.

Initial Phase of 100 GW Solar Power Project to be Inaugurated on Bali Toll Road

The Indonesian government is set to inaugurate the first phase of its ambitious 100 Gigawatt solar power project, utilising the Bali Mandara Toll Road for panel installation. The Ministry of Energy and Mineral Resources is also exploring similar developments along the Sedyatmo Toll Road in Jakarta and the entire Trans-Java Toll Road network. This initiative is part of President Prabowo Subianto's accelerated green energy transition, driven by the urgent need to secure national energy supplies amidst geopolitical uncertainty in the Middle East.

Brimob and East Jakarta Police Seize Nine Motorcycles in Illegal Street Racing Raid

A joint operation by the Brimob Mobile Brigade and East Jakarta Police resulted in the seizure of nine motorcycles and the detention of 11 youths for illegal street racing in Cipayung. The raid, conducted in the early hours of Friday morning, was a response to community reports and is part of heightened routine patrols to curb street crime. Authorities have urged parents to increase supervision of their children's nighttime activities to prevent their involvement in activities that disrupt public order.

Origin of weapons at South Jakarta private school revealed, claimed for shooting extracurricular

A cache of 995 weapons discovered at a private school in Pondok Pinang, South Jakarta, has been claimed as legally owned airsoft guns intended for a shooting and archery extracurricular programme. The director of PT Lokta Karya Perbakin stated the weapons had been stored at the school since 2021 with a valid police permit but the programme was abandoned following the death of the foundation's patron. Police confirmed the discovery, which also included ammunition, accessories, and suspected narcotics, and are investigating the matter.

Bareksa Analyst Stock Recommendations: TAPG, HRTA, and INTP as IHSG Eyes Consolidation

Bareksa's analyst team has recommended Triputra Agro Persada (TAPG), Hartadinata Abadi (HRTA), and Indocement Tunggal Prakarsa (INTP) as short-term trading picks for 7 August 2026. All three stocks show confirmed uptrends, but the analysts caution that low risk/reward ratios and overbought signals on HRTA and INTP require disciplined entry near the lower end of the buy range. The Jakarta Composite Index (IHSG) is expected to consolidate between 6,316 and 6,454 after a slight decline, pressured by foreign selling and approaching key resistance levels.

Rupiah Predicted to Strengthen as Indonesia's Economic Fundamentals Remain Solid

The Indonesian rupiah is expected to strengthen, supported by robust domestic economic growth that surpassed market expectations in the second quarter of 2026. A weakening US dollar, following softer-than-expected American economic data, is also providing tailwinds for the currency. However, market participants remain cautious ahead of the release of Indonesia's foreign exchange reserves and key US employment figures.

House Deputy Speaker: Name Forgery in 'Nobel MBG' Paper a Serious Violation

A deputy speaker of Indonesia's House of Representatives has condemned the forgery of President Prabowo Subianto's name in an academic paper proposing a free nutritious meal programme for a Nobel Peace Prize. The legislator described the act as a serious breach of academic ethics and called for a thorough, transparent investigation. The Ministry of Higher Education, Science, and Technology has already launched a probe, finding that several named individuals were unaware of their inclusion in the paper.

Public Works DG Laments Cibanten River's Decline from Pristine to Polluted

The Director General of Water Resources at the Ministry of Public Works, Arnold Aristoteles Paplapna Ritiauw, has expressed dismay over the current polluted state of the Cibanten River in Serang, recalling its cleanliness three decades ago. He launched a national clean irrigation movement, emphasising that dirty water poses health risks and urging collaboration between the government and local communities. Ritiauw also advocated for involving schoolchildren in the initiative to instil a lifelong appreciation for environmental cleanliness.

RI and South Korea Build Forest and Land Fire Management Centre in South Sumatra

Indonesia and South Korea are strengthening cooperation on forest fire control with the construction of a new management centre in South Sumatra. The facility, developed through five years of collaboration, aims to bolster Indonesia's capacity to tackle increasingly complex fires exacerbated by climate change. Forestry Minister Raja Juli Antoni expressed hope that the enhanced measures will help reduce the extent of fires this year despite the early arrival of El Niño.

Former Konawe Selatan Secretary Used Fake Plates During Raid with Alleged Mistress

Police have revealed that the former Regional Secretary of Konawe Selatan, Ichsan Porosi, was using a government vehicle with counterfeit number plates when he was caught in a raid with a woman suspected to be his mistress. The plates were not registered in the national traffic database. The incident escalated when his sister was allegedly assaulted by the suspect as she tried to block the vehicle.

Tax Office to Target Landlords in Bid to Boost Revenue

Indonesia's Directorate General of Taxes is planning to expand the tax base by targeting individuals who own multiple properties and earn income from rentals. The government aims to optimise tax collection from sectors deemed to have suboptimal compliance. Enhanced inter-agency data integration and the ongoing development of the Coretax system are expected to support more effective taxpayer profiling and supervision.

Professor Proposes 'Asset Recovery' Terminology in Draft Law

A law professor has proposed that the term 'asset recovery' be used instead of 'asset seizure' in a draft Indonesian bill, arguing it better reflects the goal of returning criminal proceeds and aligns with international standards. Yehezkiel Minggus Tiranda of Sultan Agung Islamic University believes 'recovery' is a more humanistic term that could facilitate international cooperation under frameworks like UNCAC. He also stressed that transitional and closing provisions are the most crucial parts of the legislation to prevent future legal disputes.

Police Arrest Rapist and Murderer of 6-Year-Old Girl Found in Well

Police in South Tapanuli, North Sumatra, have arrested a 37-year-old man for the alleged rape and murder of a six-year-old girl. The victim's body was discovered in a well on 2 August 2026, and an autopsy revealed injuries consistent with sexual assault and asphyxiation. The suspect was apprehended at his hiding place and is currently in custody for further investigation.

List of Health Workers Apologising After Mocking BPJS Patient on Social Media

Several Indonesian health workers have issued public apologies after posting unsympathetic comments on social media towards a BPJS patient who later died. The patient, Yurizal Tri Chaerawan, had complained about an eight-hour wait for a hospital room, prompting sarcastic remarks from medical professionals, including suggestions to use the mortuary. The incident has sparked widespread public condemnation and renewed scrutiny of empathy and ethics among healthcare staff.

Farewell to Cak Sholeh: Justice must not wait to go viral

The late advocate Muhammad Sholeh, known as Cak Sholeh, popularised the phrase 'No Viral No Justice' as a critique of Indonesia's legal system, where public attention often only arrives after a case gains traction on social media. His passing on 7 August 2026 has reignited debate about why citizens feel compelled to make their grievances viral before receiving proper legal attention. Cak Sholeh's legacy lies in his consistent advocacy for marginalised communities and his pioneering use of digital platforms to democratise access to legal aid.

Transport Minister Reveals Online Motorcycle Taxi Presidential Regulation to be Issued Before August 17

Indonesian Transport Minister Dudy Purwagandhi announced that a Presidential Regulation governing online motorcycle taxis (ojol) is targeted for issuance before 17 August 2026. The regulation will include a revenue-sharing scheme of 92% for drivers and 8% for application providers, which has been in effect since 1 July 2026. It will also expand to cover food and goods delivery services, while passenger car services are not yet included.

Gold Prices for Three Brands at Pegadaian Fall Simultaneously on Friday

Gold prices for Galeri24, Antam, and UBS bullion sold through Indonesia's state-owned pawnshop Pegadaian declined in unison on Friday. The drop follows a previous day's higher valuations, with Antam gold remaining the most expensive at Rp2,756,000 per gram. Prices are subject to change at any time.

Polda Metro Jaya Foils Smuggling of 3.4 Kg of Cannabis from North Sumatra

The Jakarta Metropolitan Police's Narcotics Directorate has intercepted a 3.4-kilogram cannabis shipment originating from Panyabungan, North Sumatra. Two suspects, aged 19 and 15, were arrested at a bus parking area in Tangerang following a public tip-off. Authorities are continuing their investigation to uncover the wider supply network in North Sumatra.

RI develops water technologies to tackle stronger El Nino

Indonesia is advancing weather modification, desalination, and water purification technologies to mitigate the impacts of a stronger and drier El Nino this year. President Prabowo Subianto has instructed BRIN to enhance cloud-seeding with finer salt particles and drones, while expanding desalination plants in 40 coastal areas and deploying the Arsinum system to convert floodwater into drinking water. The government is also mapping underground rivers to secure new raw water sources as the meteorology agency warns of severe risks to agriculture, water supplies, and the broader economy.

Manpower Ministry Adjusts Labour Regulations to Address Evolving Work Dynamics

Indonesia's Ministry of Manpower is updating labour regulations to better address the changing nature of work, including fixed-term contracts, outsourcing, and the platform-based gig economy. Secretary-General Cris Kuntadi emphasised the need for adaptive rules that balance business flexibility with robust worker protections. The ministry is also refining outsourcing governance to ensure greater transparency and legal certainty for all parties involved.

Shares Surge Hundreds of Percent, IDX Scrutinises Two Issuers

The Indonesia Stock Exchange (IDX) has placed PT Citra Buana Prasida Tbk. (CBPE) and PT Karya Pacific Energy Tbk. (IATA) under close monitoring due to unusual market activity following sharp share price increases. CBPE shares have surged over 108% in the past month, while IATA has seen a 73% monthly gain despite a year-to-date decline. The bourse emphasised the monitoring is a protective measure and urged investors to carefully review the companies' disclosures and performance before making investment decisions.

Correct Writing of the 81st Indonesian Independence Day Anniversary

As Indonesia approaches its 81st Independence Day on 17 August 2026, the Ministry of Communication and Digital Affairs has issued guidance on the correct phrasing for the celebration. Common mistakes include writing 'HUT RI ke-81' instead of the proper 'HUT ke-81 RI'. The ministry also provided examples of correct congratulatory messages to avoid misinterpretation.

Long-Tailed Macaques Attack Homes in Indragiri Hilir, 18 Residents Injured

A troop of long-tailed macaques has been attacking residents in Tembilahan, Indragiri Hilir, Riau, leaving 18 people with bite and scratch wounds, some requiring surgery. The attacks occurred over a two-week period between late July and early August, targeting people both inside and outside their homes. Local authorities, police, military, and the Natural Resources Conservation Agency (BKSDA) have responded with patrols, school closures, and the deployment of traps to capture the aggressive primates.

Japan Household Spending Falls 3.3% in June 2026, Banks Monitor Impact

Japanese household spending unexpectedly fell 3.3% year-on-year in June 2026, marking the seventh consecutive month of decline, as adverse weather and geopolitical uncertainty weighed on consumption. The drop, which was significantly worse than market expectations of a 1% rise, comes despite a 1.6% increase in real wages. The Bank of Japan is monitoring the data ahead of a potential interest rate decision in September, though analysts suggest it will not be the decisive factor.

KSP Chief Calls for National Unity and Stability

Chief of the Presidential Staff, General (Ret.) Dudung Abdurachman, has urged all elements of Indonesian society to strengthen unity and wisely navigate the dynamics of information and democracy to maintain national stability. He emphasised that the nation's primary strength lies in its spirit of mutual cooperation, not just its natural resources. Dudung also highlighted the importance of digital literacy, calling on the public to verify facts before sharing information online.

Heatwaves Reduce Nuclear Power Capacity in Europe

Severe heatwaves across Europe are forcing nuclear power plants, particularly in France and Hungary, to reduce output due to low river levels and high water temperatures. The restrictions, aimed at protecting aquatic ecosystems, highlight the vulnerability of nuclear energy to climate change, even as France remains a net electricity exporter. Experts warn that climate-related nuclear outages could increase three to fourfold by 2050, posing critical challenges for specific sites.

Leather Factory in Prawirodirjan, Yogyakarta, Given One Week to Fix Waste Treatment Plant

A leather factory in Prawirodirjan, Yogyakarta, has been given one week to repair its wastewater treatment plant (IPAL) after residents complained of a persistent, pungent odour. An inspection by the Yogyakarta Environmental Agency (DLH) and local parliament found a broken aerator, waste leaking into rainwater drains, and pipe leaks. The DLH will deploy an expert team to investigate water and air quality and may impose sanctions if environmental violations are confirmed.

Forestry Minister Affirms State's Presence to Prevent Forest and Land Fires

Forestry Minister Raja Juli Antoni has stated that President Prabowo Subianto has instructed the government to protect citizens from the threat of forest and land fires during the dry season. The minister expressed optimism that fire incidents can be reduced compared to 2023, despite the earlier arrival of El Niño. He also praised the efforts of frontline agencies and emphasised the need for cross-party collaboration.

Bapanas: Producers Must Ensure Nutritional Claims on Fortified Rice Are Accurate

Indonesia's National Food Agency (Bapanas) has mandated that producers of fortified rice must guarantee the nutritional content matches what is stated on the packaging label. This directive follows a recent inspection in Jakarta that found several brands of nutritionally claimed rice did not meet their stated requirements. The move aims to strengthen food safety supervision and protect consumers, particularly vulnerable and low-income groups.

ESG Encouraged as New Standard for Indonesian Business Competitiveness

The KEHATI Foundation is promoting Environmental, Social, and Governance (ESG) principles as a core indicator of long-term business competitiveness and risk management in Indonesia. The foundation recently held its fourth annual ESG Award to recognise companies and investors demonstrating leadership in sustainable practices. Despite progress, the adoption of ESG investment products in Indonesia remains limited, highlighting the need for greater market understanding and integration of sustainability into business strategies.

Light Comes to Dudepo Island for Independence Day

The remote Indonesian island of Dudepo in North Gorontalo has finally received electricity, with the main power connection inaugurated ahead of the 81st Independence Day. The government, through state utility PLN, has installed a 20 kV submarine cable to supply 335 homes, fulfilling a long-held dream for the 1,286 residents. The electrification is expected to boost the local economy, particularly for fishermen, and support the island's development into a tourism destination.

KP2MI Explores Opportunities for Skilled Migrant Worker Placement in the Czech Republic

Indonesia's Deputy Minister for the Protection of Indonesian Migrant Workers (P2MI) is exploring new opportunities to place skilled workers in the Czech Republic. The initiative follows information from the Indonesian Embassy in Prague regarding labour needs in strategic sectors. The government aims to ensure placements are legal and match the skills required by the Czech job market.

PTPN Records Rp 29.1 Trillion in Sales, Business Transformation Begins to Bear Fruit

State-owned plantation holding company PTPN Group reported a 10.89% year-on-year increase in sales to Rp 29.1 trillion for the first half of 2026, signalling the success of its ongoing business transformation. The company also saw its net operating cash flow rise 13.4% to Rp 5.53 trillion, alongside growth in total assets and equity. Management attributed the improved performance to enhanced productivity, operational efficiency, and optimised business processes across its entities.

BMKG: Shallow M 3.5 Earthquake in Bogor Triggered by Active Fault

A shallow magnitude 3.5 earthquake struck Bogor, West Java, in the early hours of Friday, triggered by an active fault according to the Meteorology, Climatology and Geophysics Agency (BMKG). The tremor was felt across several districts in Bogor Regency as well as in Cianjur and Sukabumi, with three aftershocks recorded. No damage has been reported so far.

Bobby Nasution Begins Paving Strategic Roads in North Nias, Residents: 'Decades of Waiting'

North Sumatra Governor Bobby Nasution has launched the long-awaited paving of two strategic road sections in North Nias Regency. The projects, costing over Rp44 billion, aim to boost economic activity and mobility in the region. Local residents expressed gratitude, noting the roads had not been asphalted for decades.

Iran and Proxies Reportedly Preparing to Attack Saudi Arabia

Saudi intelligence reports indicate that Iran's Islamic Revolutionary Guard Corps and its regional proxies are preparing a coordinated attack on the Kingdom. The potential strikes could target civilian and energy infrastructure, including airports and ports. The development comes despite ongoing diplomatic efforts by Riyadh to de-escalate regional tensions.

BI: Indonesia's Foreign Exchange Reserves Slightly Down to US$145.3 Billion at End of July 2026

Bank Indonesia reported that the country's foreign exchange reserves stood at US$145.3 billion at the end of July 2026, a slight decrease from the previous month. The central bank attributed the decline to government external debt payments amid renewed global financial market uncertainty, while maintaining that the reserve level remains adequate. BI emphasised that the reserves are sufficient to support external sector resilience and macroeconomic stability.

IDX Suspends Trading of BAJA Shares After 124.8% Surge in a Week

The Indonesia Stock Exchange has temporarily suspended trading of PT Saranacentral Bajatama shares following a significant cumulative price increase. The suspension, effective from the pre-opening session on 7 August 2026, is intended to protect investors. BAJA's share price had soared 38.17% over the past week and 124.8% over the past month, reaching Rp 362 per share.

Lawmakers and Practitioners Push for Complaint Post to Prevent Human Trafficking

Indonesian legislator Ahmad Doli Kurnia and social observers are urging the establishment of a dedicated complaint post to combat human trafficking (TPPO). They argue that such a facility would strengthen prevention efforts and provide crucial support for victims. The call comes amid concerns over the significant economic losses and human costs associated with trafficking, including lost remittances and state expenditure on victim repatriation.

The 'AC Child' Phenomenon and Gen Alpha's Resilience

A child development expert from IPB University has weighed in on the viral 'anak AC' (AC child) phenomenon, where children struggle in outdoor heat. She warns that the convenience-driven lifestyle of Generation Alpha, born between 2010 and 2025, may weaken their mental resilience and problem-solving skills. The expert advises that children need to be trained to face discomfort to grow into tough and adaptive individuals.

West Bandung Regency Official Goes Viral for TikTok Livestream During Work Hours, Allegedly Discusses Project Fee

A civil servant (ASN) in the West Bandung Regency government has gone viral for conducting a TikTok livestream during working hours. In the video, the official is allegedly heard discussing a 1 percent fee for a project. Regional Secretary Ade Zakir stated that the government will first clarify the facts and verify the individual's employment status before taking any disciplinary action.

APMF 2026 Urges Industry to Build Sustainable Collaboration

The Asia Pacific Media Forum (APMF) 2026 is pushing industry players to shift from short-term campaigns to building lasting collaborative systems. Chairman Andi Sadha emphasised that the future lies in creating sustainable value through partnerships, not just fleeting impressions. The forum in Bali serves as a platform for decision-makers to forge long-term professional relationships.

Cooking Oil, Rice, Sugar and Beef Prices Stagnant, Check the Full List

Bank Indonesia's National Strategic Food Price Information Centre reported stagnant prices for several key commodities, including various grades of rice, premium sugar, and bulk cooking oil. Meanwhile, shallot, garlic, and egg prices declined, but fresh chicken, curly red chilli, and red bird's eye chilli saw increases. The data provides a snapshot of current food price stability and volatility in the Indonesian market.

Indonesia explores Chinese, Russian investment for Trans-Kalimantan railway

The Indonesian government is seeking foreign investment, including from China and Russia, to accelerate the development of the Trans-Kalimantan railway. This follows a direct order from President Prabowo Subianto to fast-track the project alongside the Trans-Sumatra railway, with state rail operator PT KAI having prepared a roadmap. The timeline for construction will depend on investor assessments, though the government has already initiated communication with potential foreign partners.

Oil Prices Strengthen as Market Eyes Proposed Ship Restrictions in Strait of Hormuz

Global oil prices rose on Friday as markets assessed a joint proposal by Iran and Oman to restrict vessel traffic in the Strait of Hormuz. The plan includes banning ships deemed hostile and imposing heavy fines, raising concerns over the security of a route handling 20% of global oil and LNG trade. Analysts remain sceptical that any agreement would fully restore normal shipping operations given the history of short-lived deals and ongoing geopolitical tensions.

Indonesia to Build Solar Power Plants Along Toll Roads to Meet 100 GW Target

The Indonesian government is exploring the installation of solar power plants along toll roads, starting with Bali's Mandara Toll Road, as part of an ambitious plan to achieve 100 gigawatts of solar capacity by 2029. The initiative, which may extend to the Sedyatmo Toll Road in Jakarta and the Trans-Java Toll Road, is driven by President Prabowo Subianto's push to accelerate the green energy transition amid geopolitical uncertainties threatening energy security.

Indonesia studies Trans-Java expressway solar project for 100 GW plan

The Indonesian government is launching a study this year to assess the potential for installing solar panels along the Trans-Java expressway, as part of its ambitious 100-gigawatt solar power programme. The assessment will examine technical factors such as wind conditions, with implementation expected to begin next year. The broader solar initiative, now included in the revised national electricity plan, is projected to significantly reduce import costs and boost GDP.

South Sumatra Police Receive 1.2-Hectare Land Grant to Build BPKB Service Building

The South Sumatra Regional Police have commenced construction of a new Vehicle Registration Document (BPKB) service building following a 1.2-hectare land grant from the provincial government. The 1,844-square-metre facility, targeted for completion by December 2026, aims to modernise vehicle administration services and enhance transparency. The groundbreaking ceremony also featured the distribution of social aid to underprivileged residents, underscoring the police's commitment to community service alongside institutional reform.