Indonesian Political, Business & Finance News

Archive: 14 September 2026

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World Enters 'Higher for Longer' Era, BI Governor Warns of Capital Outflow

Bank Indonesia Governor Destry Damayanti has warned that the global 'higher for longer' interest rate environment poses a risk to emerging economies. The trend could trigger capital flight towards developed nations, particularly the United States, as investors seek higher returns in technology and AI sectors.

Transport Minister States Capsized Virgo Vessel Was Not Overcapacity

The Minister of Transportation has confirmed that the KMP Virgo Transport 8 was not overloaded at the time of its capsizing in the Java Sea. Search and rescue operations continue for the remaining passengers following the tragic incident that has resulted in six confirmed fatalities.

Above-Normal Rainfall Triggers Deadly Landslides in Central Aceh

Heavy rainfall in Central Aceh has triggered devastating landslides, resulting in one fatality and thirteen injuries. The disaster has blocked national, provincial, and district roads, prompting emergency heavy machinery deployment to restore vital transport links.

Central Java Provincial Government Hopes National MTQ Strengthens Togetherness and Collaboration

The Governor of Central Java, Ahmad Luthfi, highlighted the collaborative efforts between local universities and the provincial government in hosting the 31st National MTQ. The event serves as a platform for promoting religious tolerance and social unity, involving diverse community groups and non-Muslim participants.

Foreign Media Highlight Capsized Virgo Ship in Java Sea, Emphasise Safety Issues

International news agencies, including AFP and Reuters, have reported on the capsizing of the KMP Virgo Transport 8 in the Java Sea, which has left numerous passengers missing. The reports highlight systemic safety concerns and the high-risk nature of maritime transport in Indonesia's vast archipelago.

Xiaomi Pad 9 and Pad 9 Pro Debut with 3.2K Displays and Snapdragon Chips

Xiaomi has officially launched the Pad 9 and Pad 9 Pro tablets in China, featuring high-resolution 3.2K displays and advanced Snapdragon processors. The new lineup offers various configurations with enhanced productivity features and competitive pricing starting from approximately Rp7.8 million.

Seventh Day: Search Area for Five Journalists and Three Crew Members Expanded to 6,649 Square Nautical Miles

The Joint SAR Team has expanded the search perimeter in the Sunda Strait to 6,649 square nautical miles following the disappearance of five journalists and three crew members. The operation involves 18 vessels from the Indonesian Navy, Police, and Basarnas as they continue efforts to locate the missing individuals.

Gerindra-PSI Faction Criticises Bali 2026 Revised Regional Budget

The Gerindra-PSI faction of the Bali Regional House of Representatives (DPRD) has raised concerns regarding the 2026 revised regional budget, which projects a deficit of Rp 842.56 trillion. The faction is demanding transparency regarding the province's reliance on regional loans and the actual impact of budget absorption on public welfare.

Farmers Protest in Front of Parliament, Urging Immediate Passage of Agrarian Reform Bill

Members of the Indonesian Farmers Union (SPI) held a demonstration at the DPR RI building to demand the swift ratification of the Agrarian Reform Bill. The group is calling for structural changes through land redistribution and the protection of farmers' rights against corporate dominance.

Ready to Strike Mafia: Fortified Rice Cartels Reaping Massive Profits

The Minister of Agriculture and Head of the National Food Agency, Amran Sulaiman, has vowed to crack down on rice mafias involved in fraudulent fortified rice schemes. Laboratory tests revealed that 93% of sampled fortified rice failed to meet nutritional standards despite being sold at significantly inflated prices.

IHSG Drops 1.7% in Morning Session, Dragged Down by Mining Stocks!

The Indonesia Composite Index (IHSG) fell by 1.7% during the first trading session on Monday, driven primarily by a slump in the energy and mining sectors. Market volatility is being fuelled by heightened geopolitical tensions in the Middle East and expectations of US interest rate hikes.

Latest on KMP Virgo: 108 Passengers Found Safe on Second Day

The search for passengers of the KMP Virgo Transport 8, which met with an accident in the Java Sea, has resulted in 108 survivors being rescued. Minister of Transportation Dudy Purwagandhi confirmed that while 114 people have been located, six fatalities have been recorded.

Malaysia Arrests Second Pilot in Drug Smuggling Case to Indonesia

Malaysian authorities have apprehended a second pilot in connection with a drug trafficking investigation involving the smuggling of narcotics into Indonesia. The suspect, believed to be responsible for managing drug proceeds, was arrested in the Klang Valley as part of an ongoing international investigation.

Bahlil Speaks Out on Plans for Special Oil and Gas Business Entity

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has addressed the proposed formation of a Special Oil and Gas Business Entity (BUK Migas) to replace SKK Migas. The proposed legislation aims to centralise upstream mining authority under a new body reporting directly to the President.

Updated List of Survivors from Virgo Transport 8 Ship Capsizing Evacuated by SAR Team

The National Search and Rescue Agency (Basarnas) has released an updated list of survivors following the capsizing of the Virgo Transport 8 in the Java Sea. While 16 individuals from the vessel were rescued, one fatality has been reported and is currently undergoing identification.

Research: 99 Per Cent of Indonesian Consumers Care About Sustainability

A recent study by Bain & Company reveals that 99 per cent of Indonesian consumers, including all surveyed Gen Z respondents, are concerned about environmental sustainability. This high level of engagement presents a significant opportunity for businesses to integrate sustainable practices with health and digital technology to capture the market.

Komnas HAM Urges Papua Regional Police to Investigate Shooting of Three Jayawijaya Civil Servants

The National Commission on Human Rights (Komnas HAM) has called for a professional and transparent investigation by the Papua Regional Police following the fatal shooting of three civil servants in Jayawijaya. The Commission emphasised that the status of government employees does not negate their right to protection as civilians, rejecting claims of intelligence involvement made by armed groups.

Transport Minister States KMP Virgo Transport 8 Was Not Overloaded, Issues Directive

The Minister of Transportation has confirmed that the KMP Virgo Transport 8 was not exceeding its capacity at the time of its accident in the Java Sea. While 108 survivors have been rescued, six fatalities have been confirmed, and an investigation by the KNKT is currently underway.

Virgo Transport 8 Ship Capsizes - Laptop Traders Suffer

A joint search and rescue operation is underway for the Virgo Transport 8 vessel, which lost contact in the Java Sea due to extreme weather. Simultaneously, the global surge in artificial intelligence demand is causing a severe memory chip shortage, impacting the personal computer market.

Dozens of Former Principals in Dompu Protest Reassignment as Ordinary Staff

Dozens of former school principals in Dompu, West Nusa Tenggara, are protesting their reassignment from teaching roles to administrative staff. The change in status threatens their teaching hours and certification allowances, prompting the local regional parliament to launch an investigation.

TASPEN Disburses Work Accident Insurance to Heirs of Jayawijaya Civil Servant

PT TASPEN (Persero) has distributed benefits totalling over Rp420 million to the heirs of a deceased civil servant from Jayawijaya Regency. The payment includes work accident insurance and old-age savings following the official's death during duty in Muliama District.

17 Suspects Arrested for Hoarding 18,905 Litres of Subsidised Fuel in South Sulawesi

South Sulawesi Regional Police have apprehended 17 individuals involved in the illegal hoarding and distribution of subsidised diesel and petrol. The operation resulted in the seizure of nearly 19,000 litres of fuel along with various vehicles and equipment used in the illicit trade.

Pertamina Patra Niaga Adds Modular Petrol Stations in CPI, Reducing Fuel Queues in Makassar

Pertamina Patra Niaga has deployed three modular petrol stations at the Center Point of Indonesia (CPI) in Makassar to alleviate fuel queues. This initiative, conducted in collaboration with the South Sulawesi Provincial Government, aims to improve fuel distribution and accessibility for local motorists.

GBCI Promotes Low-Carbon Buildings Through Green Material Integration

The Green Building Council Indonesia (GBCI) is advocating for a holistic approach to reducing the carbon footprint in the national construction sector. During the 'Bangun Indonesia: Bandung Chapter' forum, experts emphasised that achieving low-carbon buildings requires integrating green materials with design, policy standards, and industrial readiness.

TPL Responds After Being Named Suspect in Case Involving Rp 2 Trillion State Loss

PT Toba Pulp Lestari (TPL) has issued a statement following its designation as a corporate suspect by the Attorney General's Office regarding alleged tax fraud. The company is accused of manipulating export codes and under-invoicing products to evade taxes, potentially causing losses of Rp 2 trillion to the state.

'Sang Pengadil' Film Producer Faces Trial in Zarof Ricar Money Laundering Case

Agung Winarno, a film producer, has appeared in court facing charges related to the money laundering investigation involving former Supreme Court official Zarof Ricar. The case involves allegations that Ricar's assets were hidden within Winarno's various business ventures.

Viral Satanic-themed Carnival: MUI States it Contradicts the Spirit of Prophet's Birthday

The Indonesian Ulema Council (MUI) has criticised a viral carnival in Pekalongan for featuring imagery allegedly linked to satanic rituals. Vice Chairman KH M Cholil Nafis stated that such displays contradict the religious essence of Maulid Nabi, which should focus on Islamic values and education.

Bank Indonesia Governor Explains Reasons for Rupiah Pressure Against Dollar Last Week

Bank Indonesia Governor Destry Damayanti highlighted that escalating geopolitical tensions, specifically the Iran-US conflict, have pressured the rupiah against the US dollar. Despite recent volatility, the central bank maintains its rupiah projection within the range of Rp 17,300 to Rp 17,800 per US dollar for this year and next.

Mataram Customs Destroys Illegal Excise Goods and Unauthorised Medicines

Mataram Customs has destroyed a massive haul of illegal tobacco, alcohol, and unauthorised medicines valued at over Rp10.2 billion. The seizure, resulting from 290 enforcement actions, represents a potential loss of Rp8.3 billion in state revenue.

Concert in Kota Tua Dispersed Due to Gas Odour Causing Breathing Difficulties

A concert held in Jakarta's Kota Tua area was forced to disperse after a pungent odour caused attendees to experience shortness of breath. Authorities have detained a suspect believed to have released a powder to create chaos for the purpose of committing theft.

Commission II: 15 Regency/City Bills Not Intended for Regional Expansion

The Deputy Chairman of Commission II of the House of Representatives, Dede Yusuf, clarified that 15 draft bills concerning regencies and cities in Kalimantan are not aimed at regional expansion. The legislative initiative seeks to realign the legal foundations of these existing regions with the 1945 Constitution and modern administrative nomenclature.

Agriculture Minister Amran: Conglomerates Should Not Enter the Rice Business

Minister of Agriculture Amran Sulaiman has stated that the rice industry should remain a space for small-scale economic actors rather than conglomerates, as rice is a subsidised commodity. The Minister also announced a crackdown on 'rice mafias' involved in fraudulent fortified rice products, following a mandate from President Prabowo Subianto.

Frogmen to Sea Drones Deployed to Search for 129 Victims of Virgo Ship Capsizing

A massive search operation involving Indonesian Navy Frogmen (Kopaska) and specialised underwater drones has been launched to locate 129 missing persons following the capsizing of the Virgo Transport 8. The vessel, which was en route from Surabaya to Banjarmasin, has already seen 114 individuals rescued, including 108 survivors and six fatalities.

Bekasi Regent Ade Kuswara Sentenced to 6 Years in Prison and 10-Year Political Ban

The inactive Regent of Bekasi, Ade Kuswara Kunang, has been sentenced to six years in prison for his involvement in a corruption case involving project 'ijon' (advance payments). The court also imposed a 10-year ban on his political rights and ordered a significant fine.

Basarnas Expands Search Area for KM Balama GT 27 Carrying Three Missing Passengers in Banggai Waters

The National Search and Rescue Agency (Basarnas) has widened its search radius to include Banggai Laut waters following the loss of contact with the motor vessel KM Balama GT 27. The vessel, which carries three individuals, has been missing since Saturday, 12 September, prompting a large-scale coordinated operation involving multiple regional agencies.

Following Sinking of Virgo Transport 8, Puan Demands Total Evaluation of Maritime Safety Systems

The Speaker of the House of Representatives, Puan Maharani, has called for a comprehensive overhaul of national maritime safety systems following the capsizing of the Virgo Transport 8 in the Java Sea. She urged authorities to prioritise search and rescue operations and demanded a thorough government investigation into the cause of the accident.

West Java Provincial Government Distributes 25 Million Litres of Water to 900,000 Drought-Affected Residents

The West Java Regional Disaster Management Agency (BPBD) has distributed 25 million litres of clean water to combat widespread drought affecting nearly one million residents. The crisis has impacted 660 villages across the province, with Bekasi, Bogor, and Pangandaran receiving the highest volume of aid.

Indosat Hifi Connection Frequently Disconnecting, Service Improvement Requested

A customer has reported frequent internet outages regarding Indosat Hifi services, noting a significant three-day disconnection in August. The complaint highlights difficulties in reaching customer service agents and the repetitive nature of unhelpful, templated responses.

Video: Ambition for 100 GWp Solar Power, Indonesia's Path to Escaping 'Coal Addiction'

The Prabowo administration has inaugurated a 100 Gigawatt peak (GWp) solar power programme as part of a national strategy for energy independence. While experts view the target as realistic given Indonesia's vast renewable potential, they emphasise the need for clear roadmaps and regulatory strengthening to phase out coal-fired power plants.

Tensions Escalate as Saudi Arabia Continues Strikes Against Houthis in Yemen

The Houthi rebel group has reported over 50 Saudi airstrikes within a 24-hour period following recent drone and missile attacks on Saudi military bases. The escalation threatens regional stability and vital oil shipping routes through the Bab al-Mandeb Strait.

Banten Governor Requests Basarnas to Extend Search Operations for Missing Journalists

The Governor of Banten, Andra Soni, has urged Basarnas to consider extending the search operation for five journalists and three crew members missing in the Sunda Strait. The request follows pleas from the victims' families to continue the search beyond the standard seven-day limit.

Indonesia's Prabowo champions three key messages at BRICS Summit

President Prabowo Subianto has outlined three strategic priorities during the BRICS Summit in New Delhi, focusing on national self-reliance and the strengthening of the Global South. The President emphasised the importance of food, energy, and educational security, while calling for more inclusive global governance through a reformed United Nations.

Pork Noodle Stall Set Ablaze in Sukoharjo; Acting Regent Urges Restraint

The Acting Regent of Sukoharjo has called for public restraint following the arson and vandalism of a pork noodle stall in Parangjoro Village. Local authorities have handed the investigation over to the police, who are currently tracking two suspects identified via CCTV.

Purbaya Reveals Regional Financial Condition: They Hold Rp195.2 Trillion

Finance Minister Purbaya Yudhi Sadewa has reported that regional governments maintain a healthy financial position with Rp195.2 trillion held in bank deposits as of late August 2026. The Minister emphasised the need to accelerate the execution of these funds to boost local economies and improve public services.

Basarnas expands search for KM Balama GT 27 in Banggai waters

The National Search and Rescue Agency (Basarnas) has widened its search area to include the Banggai Laut waters following the disappearance of the motor vessel KM Balama GT 27. The search operation, now in its third day, involves a joint team working to locate three individuals reported missing after the vessel lost contact.

Pramono: Food Prices in Jakarta Rise Slightly, but Will Not Disrupt Inflation

Jakarta Governor Pramono Anung has stated that while there has been a slight increase in food prices across the capital, it is not expected to impact inflation rates. He emphasised that the city's supply and demand monitoring systems are functioning effectively to maintain stability.

Purbaya Asserts Central Government Funds for Regions Have Never Decreased

Finance Minister Purbaya Yudhi Sadewa announced that regional transfers (TKD) are set to increase by Rp 42 trillion for the upcoming year. Additionally, the central government has allocated Rp 31.1 trillion to cover the salaries of part-time government employees (PPPK) transitioning to full-time status.

US to Focus Negotiations with Iran on Nuclear Programme

The Trump administration has informed Persian Gulf nations that upcoming discussions with Tehran will prioritise Iran's nuclear programme over the reopening of the Strait of Hormuz. This strategic shift comes amidst ongoing regional tensions and significant disruptions to global energy supply routes.

Aceh's culinary narrative needs strengthening to boost tourism appeal

The Deputy Minister of Tourism, Ni Luh Puspa, has called for enhanced storytelling regarding Aceh's traditional cuisine to promote gastronomic tourism. This initiative aims to leverage the cultural and historical significance of local dishes to drive economic growth through the Karisma Event Nusantara programme.

DPR: Search for KMP Virgo Transport 8 Victims Must Leave No One Behind

The Speaker of the House of Representatives, Puan Maharani, has urged authorities to prioritise the search and rescue operations following the sinking of the KMP Virgo Transport 8. She also called for a thorough government investigation into the cause of the accident and a comprehensive overhaul of national maritime safety systems.