Indonesian Political, Business & Finance News

Archive: 1 September 2026

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Bank of England Governor Warns of 'New Catastrophe' for Global Finance

Bank of England Governor Andrew Bailey has warned G20 finance ministers and central bank governors that advanced artificial intelligence poses a significant threat to global financial stability. In his capacity as chair of the Financial Stability Board, Bailey highlighted the risk of AI-driven cyber attacks and disorderly market corrections. He also flagged vulnerabilities in sovereign debt markets, rising leverage in equity markets, and stretched asset valuations, particularly in AI-related investments.

US Army Secretary Resigns from Trump Administration, Here's Why

US Army Secretary Dan Driscoll has submitted his resignation amid reports of tension with Defense Secretary Pete Hegseth. The White House did not deny the reports, praising Driscoll's leadership while noting the Army may be left without permanent civilian or military leadership. His departure follows the April dismissal of Army Chief of Staff General Randy George, with no permanent replacement yet named.

Maybank Acquires 51% Stake in Etiqa Insurance for Rp21.59 Billion

PT Bank Maybank Indonesia Tbk has acquired a 51% controlling stake in PT Asuransi Etiqa Internasional Indonesia from Etiqa International Holdings Sdn. Bhd. for Rp21.59 billion. The transaction, completed on 31 August 2026, is part of the formation of the Maybank Group Financial Conglomerate in Indonesia. The acquisition follows approval from the Financial Services Authority (OJK) under Regulation No. 30 of 2024 on financial conglomerates.

Hanta Yuda Reveals 5 Things the Prabowo-Gibran Administration Must Do to Boost Approval Rating

Poltracking Indonesia Executive Director Hanta Yuda has outlined five strategic agendas for the Prabowo-Gibran administration to restore its approval rating, citing a gap between public trust at 63.2 percent and approval at 55.1 percent. He emphasised that the government is not facing a crisis of trust but rather a warning sign of potential satisfaction crisis. The proposed measures include protecting purchasing power, refining flagship programmes, and strengthening law enforcement.

Yosun Tire invests Rp4 trillion to build manufacturing plant in Batang SEZ

Chinese tyre manufacturer Yosun Tire and Rubber has committed Rp4 trillion to build a manufacturing facility in the Batang Industropolis Special Economic Zone in Central Java. The plant will occupy 40 hectares and is expected to employ around 4,000 workers, with production oriented towards export markets. The investment further strengthens Batang's growing automotive ecosystem and its appeal to Chinese manufacturers.

8 Indonesians Allegedly Recruited by Russian Military, House Commission I Highlights High Salary Offers

House of Representatives Commission I Deputy Chairman Dave Laksono has urged calm while the Foreign Ministry verifies reports that eight Indonesian citizens were recruited into the Russian armed forces. He warned that high-salary job offers could be exploited to recruit Indonesians without full disclosure of risks. Ukrainian intelligence published identity documents of the alleged recruits, while Indonesia's Foreign Ministry is coordinating with relevant agencies to verify the information.

DPRD Urges BKD to Immediately Fill 21 Vacant Positions in NTB Provincial Government

The West Nusa Tenggara (NTB) Regional House of Representatives (DPRD) has urged the Regional Civil Service Agency (BKD) to promptly fill 21 vacant positions ranging from echelon II to echelon IV within the provincial government. The vacancies include the director of HL Manambai Abdulkadir Hospital and the head of the NTB Regional Revenue Agency. The DPRD has set a deadline of the end of September 2026 for all positions to be filled, citing concerns over organisational performance.

Government Eyes Four Spending Areas in Rp4,097 Trillion 2027 Budget

The Indonesian government has confirmed it will continue pursuing spending efficiency despite a 3.9% increase in the 2027 state budget to Rp4,097.2 trillion. Deputy Finance Minister Suahasil Nazara highlighted four areas of focus: social protection, government operations, personnel expenditure, and transfers to regions. The government is targeting a budget deficit of 2.4% of GDP and economic growth of 6% for 2027.

Latest Pertamina Fuel Prices from 1 September 2026 in Yogyakarta: What Has Risen?

PT Pertamina Patra Niaga has adjusted prices for three non-subsidised fuel types effective 1 September 2026, citing exchange rates and taxes as factors. Pertamax Turbo, Pertamina Dex, and Dexlite all saw increases, while subsidised fuels remained unchanged. The new prices apply across Indonesia, including Yogyakarta.

Today's Stock Recommendations: ESSA, IATA, to COCO

The Jakarta Composite Index closed slightly higher on Monday, supported by gains in select blue-chip stocks despite foreign outflows. Corporate news included Phapros' improved first-half earnings, Jantra Grupo Indonesia's Surabaya expansion, and Astra International's voluntary tender offer for Astra Otoparts shares. Mega Capital Sekuritas issued buy recommendations for ESSA, IATA, ELSA, JSMR, and COCO.

IKPI Chairman Emphasises Cross-Border Challenges for Tax Consultants

The Chairman of the Indonesian Tax Consultants Association (IKPI) has highlighted the increasing complexity of international taxation due to growing trade and investment between Indonesia and South Korea. He emphasised that tax consultants must play a vital role in ensuring legal certainty and a healthy business climate amidst challenges such as transfer pricing and the digital economy.

Minister: University graduates must master digital skills

Manpower Minister Yassierli has urged university graduates to develop integrated digital competencies, including artificial intelligence and communication skills, to meet the changing demands of the labour market. He noted that employers increasingly seek combinations of core and digital skills rather than specific degree titles. The minister encouraged students to design their competency records from the start of their studies through learning, internships, certifications, and portfolios.

Shein shares slide in Hong Kong debut on worries about trade and regulatory risks

Shares in the online fast-fashion retailer Shein fell by 4 per cent during its Hong Kong debut as investors reacted to rising trade costs and regulatory uncertainties. The decline reflects concerns over new tariffs in the US and Europe, alongside ongoing investigations into the company's business practices.

Mount Sinabung Erupts, 2,451 Residents in Two Villages Evacuated

Mount Sinabung in Karo Regency, North Sumatra, erupted on Monday, sending an ash column 3,500 metres above its peak and prompting the evacuation of 2,451 residents from two nearby villages. The eruption is the first since 2022 and led authorities to raise the volcano's alert status from Level II to Level III. Evacuees are being relocated to temporary shelters in neighbouring villages as officials monitor the situation.

Unity Is Strength: Time for Aceh to Unite Against Drugs

The head of Aceh's National Narcotics Agency (BNNP) has called for a united front against drug trafficking, citing major seizures in 2026 including 168 kg of methamphetamine and a 12-hectare cannabis plantation. He warned that an estimated 40 percent of methamphetamine entering Indonesia is smuggled through Aceh, urging religious leaders, community figures, and all levels of society to join the fight. The appeal frames the anti-drug campaign as a continuation of the nation's independence struggle.

Bad News for Early September: Indonesia's Manufacturing PMI Contracts, Layoffs Rise

Indonesia's manufacturing sector slipped into contraction in August 2026, with the S&P Global PMI falling to 49.8 from an expansionary position in July. Output and employment both declined, with layoffs and voluntary resignations contributing to the contraction, while new orders showed only marginal growth. Business confidence nonetheless rose to a seven-month high, suggesting manufacturers remain hopeful about future conditions.

Subsidised Diesel and Kerosene Fuel Quota for 2027 Proposed to Rise to 19.5 Million KL

Indonesia's Ministry of Energy and Mineral Resources has proposed increasing the subsidised fuel quota to 19.561 million kilolitres in the 2027 state budget, up from 18.64 million kilolitres in 2026. The proposal includes 19 million kilolitres of subsidised diesel and 0.561 million kilolitres of kerosene, with a fixed subsidy of Rp 1,000 per litre for diesel. Minister Bahlil Lahadalia said the increase reflects actual distribution figures and projected public demand, with special attention given to eastern Indonesia where kerosene remains widely used.

Asian Markets Tumble as Investors Fret Over Renewed US-Iran Conflict

Asia-Pacific stock markets fell on Tuesday as escalating tensions between the United States and Iran rattled investor confidence. Iran launched missiles at two US airbases in Jordan in response to an American strike on Larak Island near the Strait of Hormuz, prompting threats of further retaliation from President Donald Trump. The strategic waterway's importance to global energy trade has heightened concerns about supply disruptions.

Wae Rebo Tourism Village in NTT Reopens After M 7.7 Earthquake

The Wae Rebo tourism village in Manggarai Regency, East Nusa Tenggara, has reopened to visitors after being closed for nearly two weeks following a magnitude 7.7 earthquake. The reopening is being conducted on a limited and gradual basis, with continuous monitoring of trekking routes and environmental conditions to ensure visitor safety.

BNPB to Review Constitutional Court Ruling on National Disaster Status, Prepare New Regulations

Indonesia's National Disaster Management Agency (BNPB) has said it will study a Constitutional Court ruling that changes the criteria for declaring a national disaster. The court ruled that only three of the five existing indicators need to be met, with the number of victims as the primary requirement. BNPB plans to adjust regulations and standard operating procedures accordingly, while stressing that central government involvement in disaster response does not depend on national disaster status.

Update: Metro Jaya Police Name 49 Suspects in DPR Riots, 273 Individuals Released

The Metro Jaya Regional Police have updated the number of suspects to 49 following the riots near the DPR/MPR RI building in Senayan. While 44 suspects are adults, five are minors, and the remaining 273 individuals detained during the unrest have been released after verification.

Indonesia Agriculture Minister Dismisses 27 Officials Over Gambling, Fund Irregularities

Indonesia's Minister of Agriculture, Andi Amran Sulaiman, has dismissed 27 ministry officials following investigations into online gambling and budget irregularities. The disciplinary action includes the permanent removal of 13 officials linked to gambling activities and the temporary suspension of 14 others accused of fund mismanagement.

Gold Prices for Galeri 24, UBS, Antam, and Antam Retro at the Start of September: Falling!

Gold bullion prices across various brands, including Galeri 24, UBS, and Antam Retro, experienced a decline at the start of September trading. While Antam prices remained stable, other major brands saw a reduction in their per-gram rates.

Pertamina Outlines Considerations for Pertamax Turbo Price Adjustments

PT Pertamina Patra Niaga has announced price adjustments for several non-subsidised fuel products, driven by global crude oil prices and the Rupiah exchange rate. The price changes affect Pertamax Turbo, Dexlite, and Pertamina Dex, while other products remain unchanged.

Death of TVRI Presenter Case Escalates to Criminal Investigation, Not Merely Drowning

The investigation into the death of West Papua TVRI presenter Suryanto Tuwing Idorway has been upgraded from an inquiry to a full criminal investigation. Police have found indications of criminal activity, moving beyond the initial theory that the victim was simply swept away by a river current.

As of Today, Banks Holding High SBN Portfolios Will Not Receive Additional BI Liquidity Incentives

Bank Indonesia has updated its macroprudential liquidity policy (KLM) to be more selective in distributing liquidity incentives to banks. Under the new scheme, banks with securities holdings exceeding 19% of total funding will no longer be eligible for additional incentives, as the central bank aims to prioritise credit distribution to productive sectors.

Viral Cliff Staircase at Diamond Beach Nusa Penida, Satpol PP Steps In

A video showing the construction of a staircase on the cliffs of Diamond Beach in Nusa Penida, Bali, has gone viral, prompting the Klungkung Civil Service Police Unit (Satpol PP) to investigate. Authorities have confirmed the presence of construction activity but have not yet identified the project owner or responsible party. Officials plan to coordinate with the village government and the investment and licensing agency to verify the project's legality and compliance with environmental and spatial planning regulations.

Number of Suspects in 27 August Jakarta Riots Increases to 49

The Jakarta Metropolitan Police have increased the number of suspects in the riots following demonstrations near the DPR/MPR building to 49 individuals. The investigation has identified various groups involved, including minors and those accused of orchestrating the unrest.

Mecca Defence Alliance Opens Doors to Other Muslim Nations

Pakistan, Saudi Arabia, and Turkey have officially named their new joint defence pact the 'Mecca Defence Alliance'. The alliance, which features a secretariat in Riyadh, remains open to further partnerships with other Muslim-majority nations in the region.

Mirjawal Announces Candidacy for Chairperson of the Indonesian Veterinary Association

Dr Mirjawal, the Chairperson of the Indonesian Veterinary Association (PDHI) West Java V branch, has declared his intention to run for the national chairmanship in the October 2026 Congress. His campaign focuses on increasing the organisation's direct impact on public welfare and animal health services.

Public Works Ministry distributes 25,000 litres of irrigation water to save crops in Sumbawa

The Indonesian Ministry of Public Works has deployed 25,000 litres of irrigation water to protect 18.6 hectares of paddy fields from drought in Sumbawa, West Nusa Tenggara. This emergency intervention aims to prevent crop failure for 40 local farmers during the second planting season.

Trump Plans US Return to Attacks on Iran

US President Donald Trump has indicated that the American military remains prepared to launch further strikes against Iran if necessary. The potential for limited strikes aims to prevent Iran from restoring its military capabilities and to protect vital maritime assets in the region.

Meeting with PalmCo Boss, Dony Requests Export Strengthening via This Strategy

Dony Oskaria, Head of BP BUMN and COO of Danantara, has met with PalmCo's President Director to discuss transformation strategies for the plantation company. The discussion focused on expanding PalmCo's global footprint by leveraging domestic surpluses to increase international exports.

Official Fuel Prices at Pertamina Stations from Aceh to Papua, Effective 1 September 2026

PT Pertamina (Persero), through Pertamina Patra Niaga, has announced price adjustments for several non-subsidised fuel products across Indonesia. While prices for Pertamax Turbo, Pertamina Dex, and Dexlite have increased, prices for Pertalite and subsidised diesel remain unchanged.

Houses Destroyed by NTT Earthquake: One Family Forced to Live in Pigsty

A family in Manggarai, East Nusa Tenggara, has been forced to seek shelter in a former pigsty after an earthquake destroyed their home. The family is currently struggling with severe food shortages and the loss of their livelihoods as farmers and weavers.

Trump considers strikes on Iran to prevent Tehran's military recovery

US President Donald Trump is reportedly considering a series of strikes against Iranian radar and missile facilities in the Strait of Hormuz. The proposed action aims to prevent Tehran from restoring its military capabilities following recent escalations in the region.

Open from This Morning! List of Mobile Samsat Locations in Jakarta, Depok, Tangerang, and Bekasi

The Jakarta Metropolitan Police Directorate of Traffic has deployed mobile Samsat services across 14 strategic locations in the Greater Jakarta area. This initiative aims to facilitate taxpayers in paying their annual Motor Vehicle Tax (PKB) more conveniently.

Putin Escalates Tensions: Massive Missile Strikes Prepared Against Ukraine

The Russian Ministry of Defence has announced plans for large-scale attacks on Ukraine's energy infrastructure in retaliation for Ukrainian strikes on Russian energy sites. This escalation follows a deadly Russian strike on a warehouse near Kyiv, raising significant fears regarding a potential energy crisis during the upcoming winter.

Bank Indonesia Distributes 32.5 Tonnes of Aid to Residents Affected by NTT Earthquake

Bank Indonesia has launched a major relief initiative, providing 32.5 tonnes of essential supplies to assist victims of the recent 7.7 magnitude earthquake in East Nusa Tenggara. The aid package includes food, medical supplies, and hygiene kits, distributed in collaboration with various government agencies.

Asset Forfeiture Bill Targeted for Approval by December 2026: Five Crucial Issues Identified

The Indonesian House of Representatives (DPR) aims to pass the Asset Forfeiture Bill by 15 December 2026 using a Non-Conviction Based mechanism. Legal experts highlight that while the bill promises significant state revenue recovery, its substance must remain constitutionally sound and procedurally fair.

Central Jakarta Government Focuses on Emergency Aid for Kebon Kelapa Fire Victims

The Central Jakarta Administration is prioritising emergency mitigation and the distribution of in-kind aid following a major fire in the Kebon Kelapa residential area. Over 800 residents have been affected, with 114 houses damaged, prompting the government to set up temporary shelters and essential services.

Foreign Investors Target BBRI as JCI Records Slight Gain

Foreign investors heavily targeted PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) during Monday's trading, despite overall net selling in the Indonesian market. The Jakarta Composite Index (JCI) closed slightly higher at 6,525.48 amidst market volatility and MSCI rebalancing adjustments.

Legislator Urges Equal Economic Opportunities for Visually Impaired Persons

A member of the Indonesian House of Representatives (DPR RI) has called for greater economic inclusion for visually impaired individuals in Denpasar, Bali. The legislator emphasised that support should move beyond social welfare to focus on providing access to skills development and independent income opportunities.

In Support of Gaza's Children, Activists Fly Kites in Various Countries

Activists across Washington DC, Milan, Berlin, and Paris have organised kite-flying demonstrations to protest against Israel's threats to take military action against Palestinians flying kites or balloons. The protests aim to highlight the plight of children in Gaza and demand their right to a safe childhood free from military threats.

Indonesia Bids to Rejoin ICAO Council After 25-Year Absence

Indonesia is officially campaigning for a seat on the International Civil Aviation Organization (ICAO) Council following the expansion of membership from 36 to 40 states. The Ministry of Transportation aims to leverage Indonesia's vast aviation network and strategic position to influence global civil aviation policy during the upcoming assembly in Montreal.

Coal Prices Hit US$ 144, China Sees Largest Historical Increase

Coal prices have surged to US$ 144 per tonne, driven by rising oil prices and significant supply disruptions in China. The price of coking coal in China has seen a record-breaking 46% monthly increase due to mining accidents and tightened safety inspections.

Mobile Samsat Services Open at 14 Locations Across Greater Jakarta on Tuesday

The Metro Jaya Regional Police have deployed mobile Samsat units across 14 locations in the Jakarta, Depok, Tangerang, and Bekasi (Jadetabek) areas to facilitate motor vehicle tax payments. These mobile services aim to provide easier access for taxpayers to settle their annual vehicle tax obligations.

Bappenas Releases Indonesia's Human Capital Index: Will Productivity Increase in the Future?

The Ministry of National Development Planning (Bappenas) has officially launched the Human Capital Index (HCI), an upgraded metric designed to measure Indonesia's future productivity. The index focuses on a life-cycle approach, emphasising health from the womb to enhance the nation's competitiveness for the Indonesia Emas 2045 vision.

Mobile Driver's Licence Services Open at Five Locations in Jakarta on Tuesday

The Jakarta Metropolitan Police Traffic Directorate has deployed mobile driver's licence (SIM) services across five strategic locations in Jakarta. The service is available for the renewal of valid Class A and Class C licences, provided applicants bring the necessary documentation and undergo health checks.

Yesterday: Regarding the Xpeng X9 recall to the launch of history books

A roundup of recent news highlights includes Xpeng Indonesia's response to the global recall of X9 vehicles due to suspension issues. Additionally, the Indonesian Ministry of Culture has launched a five-volume series of books detailing the history of Indonesian national dynamics.