Indonesian Political, Business & Finance News

Archive: 7 September 2026

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OJK: Bank lending reaches Rp9,135 trillion as of July 2026

Indonesia's Financial Services Authority (OJK) recorded total banking industry lending at Rp9,135 trillion as of July 2026, an annual growth of 13.58 per cent. Investment credit led growth at 25.13 per cent year on year, whilst third-party funds grew 11.21 per cent to Rp10,336 trillion. The sector's health remains solid, with a gross NPL ratio of 2.10 per cent and a capital adequacy ratio of 23.84 per cent.

Video: PTBA's Strategy to Pursue Business "Beyond Coal" - Testing EV Vehicles

PT Bukit Asam (PTBA) chief executive Bambang Ismawan is optimistic the company can reach its 48 million tonne production target in 2026 whilst meeting its Domestic Market Obligation of 50% of output. PTBA is also pushing coal gasification into dimethyl ether (DME) as an LPG substitute, with plant construction targeted to begin in 2027, alongside a transition to electric mining vehicles to reduce fuel dependence.

Trade Ministry pushes for faster garlic imports and distribution

Indonesia's Ministry of Trade is pressing importers to accelerate the realisation and distribution of imported garlic to secure supply and reduce regional price disparities. Of the roughly 601,650 tonnes of import approval allocated, around 346,643 tonnes, or 57.67 per cent, have so far entered the country.

Customs and Excise records revenue realisation of Rp182.6 trillion as of July 2026

Indonesia's Directorate General of Customs and Excise reported revenues of Rp182.6 trillion up to July 2026, up 6.7 per cent year-on-year and representing 54.3 per cent of the 2026 state budget target of Rp336 trillion. Excise remained the largest contributor at Rp130.7 trillion, whilst import duties grew 12.2 per cent to Rp31.5 trillion.

Analyst Highlights Competing Interests in the Purbaya and DKI Provincial Bond Row

Arman Suparman, Executive Director of KPPOD, has suggested that the dispute over DKI Jakarta's planned municipal bond issuance may carry political overtones, possibly linked to Danantara's national financing schemes or the 2029 elections. He argued the central government must not use political considerations to block regional authority, and instead should provide clear, accountable parameters for assessing the bond's feasibility. Finance Minister Purbaya Yudhi Sadewa had earlier questioned the need for the bonds if Jakarta's finances are sufficient, whilst acknowledging the province's autonomy to proceed.

Several victims identified following landslide on Xizang border

Chinese authorities have confirmed the identities of some of the victims of the landslide that struck Gyirong Port in the Xizang Autonomous Region on 26 August. As of Saturday, 43 people were confirmed dead and 519 remained missing, including 261 foreign nationals from 23 countries. A team of more than 60 forensic experts, supported by three specialised laboratories, has been deployed to carry out the identification process.

BKPM and IWIP Push Inclusive Partnership to Strengthen Micro, Small and Medium Enterprises in North Maluku

The Ministry of Investment and Downstream Industry/BKPM and PT Indonesia Weda Bay Industrial Park (IWIP) are strengthening partnerships with micro, small and medium enterprises (UMKM) in North Maluku to expand market access and integrate local businesses into industrial supply chains. Investment realisation in North Maluku reached Rp40.2 trillion in Q2 2026, the third largest in Indonesia, while IWIP's spending on local UMKM reached Rp1.1 trillion.

Pramono highlights the press's significant role in overseeing Jakarta's development

Jakarta Governor Pramono Anung Wibowo praised journalists' strong participation in the 52nd Mohammad Hoesni Thamrin Journalism Award, with 754 entries submitted, as evidence of the press's commitment to recording the city's dynamics and overseeing development. He stressed the media's role as a critical partner of government, while the provincial administration targets placing Jakarta among the world's top 20 global cities by 2045.

Police Arrest Teenage Couple Who Buried Newborn Baby in Bandungan, Semarang

Police in Semarang Regency, Central Java, have arrested a teenage couple for burying a newborn baby in a plantation area in Kropoh Hamlet, Bandungan. The infant was born alive on 1 September 2026 but was buried the following day, with medical examiners finding indications of violence as the cause of death.

Psychologist: An enjoyable learning atmosphere helps children develop their potential

Child and family psychologist Irma Gustiana says children learn best when they feel emotionally safe, valued, and free to explore without fear of making mistakes. Deputy Minister for Women's Empowerment and Child Protection Veronica Tan urged parents to commit time to accompanying their children's development, at an event organised by Oreo and Fatayat NU promoting playful learning.

Immigration assures readiness of immigration checkpoint services at alternative airports

The Directorate General of Immigration has confirmed its readiness to serve foreign nationals diverted to alternative airports following flight delays and cancellations caused by the eruption of Mount Anak Krakatau since Sunday (6/9). Affected foreigners whose stay permits have expired will be issued Emergency Stay Permits (ITKT) with zero administrative fines for 30 days. Personnel have been deployed, including to Kertajati Airport, which previously had no immigration checkpoint.

Luhut's Message to Danantara: Create Jobs

Luhut Binsar Pandjaitan, Chair of the National Economic Council, has urged Danantara Indonesia to act as an engine of national economic growth through investments delivering tangible impact. Danantara's capital of Rp310 trillion in 2025 is projected to rise to between Rp620 trillion and Rp930 trillion by 2027. Luhut stressed that success must be measured not by figures on paper but by job creation, industrial strengthening, technology transfer and reduced import dependence.

Why the UN Changed the World Map, and How Indonesia Differs in the New and Old 'Atlas'

The United Nations has voted to adopt the Equal Earth map projection, ending the use of the Mercator projection that has distorted the size of countries for some 450 years. The move, proposed by Togo on behalf of the African Union, was backed by 164 nations, with only the United States opposing. For Indonesia, which sits near the equator, the new map presents its territory as far larger and more proportionate than previously depicted.

Prabowo Wants Disaster Mitigation Budget Increased — Here Is Purbaya's Response

Finance Minister Purbaya Yudhi Sadewa has responded to President Prabowo Subianto's call for a significant increase in the disaster mitigation budget, saying funds will be raised once the National Disaster Management Agency (BNPB) submits its calculations. Prabowo made the request during a virtual coordination meeting, citing Indonesia's position on the Pacific Ring of Fire and recent disasters including the Flores earthquake, Mount Anak Krakatau activity, and forest fires.

West Kalimantan Deputy Governor urges corporations to take active role in tackling forest fires

West Kalimantan Deputy Governor Krisantus Kurniawan has called for stronger law enforcement and active involvement from companies holding land-use rights (HGU) in addressing forest and land fires, which have affected more than 38,000 hectares in the province. He urged firms to support government agencies in firefighting efforts, while Coordinating Minister for Political and Security Affairs Jamhari Chaniago warned that companies cannot escape responsibility for fires on land under their control.

East Java Food Taskforce Investigates Premium Rice Sold Above Maximum Retail Price

The East Java Regional Police Food Taskforce inspected Pucang Market in Surabaya following reports of premium rice scarcity and inflated prices. Whilst stock was found to be adequate, several brands were being sold above the maximum retail price (HET), prompting an investigation into the distribution chain. The taskforce is also monitoring for fraudulent practices such as repackaging medium-grade rice as premium.

Food Affairs Coordinating Minister: Bulk rice aid distribution to be completed by September

The government has decided to distribute the second phase of rice food aid in a single bulk delivery rather than monthly instalments, covering more than 33.2 million beneficiary families across deciles 1 to 4. Coordinating Minister for Food Affairs Zulkifli Hasan said Perum Bulog will deliver the full 30 kilogramme allocation per recipient by September 2026, involving more than 997,200 tonnes of rice. The programme, a directive from President Prabowo Subianto, aims to strengthen food supplies and stabilise national rice prices.

Forestry Ministry detains suspect over fires in Baluran National Park area

The Ministry of Forestry has detained a suspect with the initials MF over alleged deliberate burning in Baluran National Park, East Java. The suspect confessed to setting fires on several dates across multiple locations, including near the Bajul Mati Reservoir. He faces up to ten years in prison and a maximum fine of Rp2 billion.

Leaving Jobs Behind: Muhammadiyah Volunteers Serve Disaster Survivors for Three Weeks

The Central Leadership of Muhammadiyah has expressed appreciation to volunteers who served disaster survivors in East Nusa Tenggara (NTT) for nearly three weeks, some of whom left jobs, families and medical practices. Hilman Latief, General Treasurer of Muhammadiyah's Central Board, highlighted team rotation as key to sustaining humanitarian operations, including communal kitchens, field hospitals and logistics distribution. The organisation's readiness stems from long-term consolidation through its disaster management centre, health councils and Emergency Medical Team programme developed since 2018.

Roy Suryo's Pre-trial Compensation Hearing Postponed Due to Eruption

A pre-trial hearing at the South Jakarta District Court concerning Roy Suryo's claim for compensation was postponed after the presiding judge was stranded by flight cancellations caused by volcanic activity. Judge I Ketut Darpawan is travelling back to Jakarta overland and by sea to resume proceedings. Roy Suryo refiled the petition after an earlier version was declared inadmissible for omitting the Finance Minister as a party.

Police Arrest Snatch Thief of Indian National in Menteng Using Face Recognition

Central Jakarta Metro Police arrested a repeat offender, initial NJ, within 24 hours of a bag-snatching incident involving an Indian national on Jalan Gondangdia, Menteng. The case was solved using CCTV footage matched against the police's face recognition system. The perpetrator faces up to seven years in prison under Article 477 of Law No. 1 of 2023 on the Criminal Code.

Amid volcanic ash spread, police ensure Samsat vehicle administration services continue safely

Jakarta Metropolitan Police's Traffic Directorate has confirmed that vehicle administration services at Samsat offices remain safe despite the spread of volcanic ash from Mount Anak Krakatau, distributing 10,000 free masks to taxpayers. The National Disaster Mitigation Agency (BNPB) is preparing a weather modification operation to induce rain that would settle the ash, which has disrupted public activity and flights.

Expert: Regional governments must accelerate realisation of disaster aid for East Nusa Tenggara

Public policy expert Trubus Rahadiansyah of Trisakti University has urged regional governments in East Nusa Tenggara (NTT) to speed up the distribution of presidential disaster assistance, noting that only 16.8 per cent of the roughly Rp230.94 billion allocated has been realised. The President's aid package totals Rp200 billion, comprising Rp40 billion for the provincial government and Rp20 billion each for eight regencies. He stressed that regional authorities must proactively identify the most urgent needs of affected communities, from food staples to infrastructure, and communicate them to the central government.

RI readies 10 airports to restore flights after Anak Krakatau eruption

Indonesia has prepared 10 airports to operate around the clock to accommodate flight diversions following the eruption of Mount Anak Krakatau, with five major hubs serving as alternatives to seven affected airports. The government has added extra domestic and international flights, provided free ground transportation for stranded passengers, and granted immigration leniency for foreign nationals who overstay due to cancellations. Transport officials are monitoring volcanic ash movement closely before reopening affected airports.

Customs Directorate Proposes Rp 4.09 Trillion Budget for 2027 — What Will It Be Used For?

The Directorate General of Customs and Excise at Indonesia's Ministry of Finance has proposed a 2027 budget of Rp 4.09 trillion to the House of Representatives' Commission XI. Director General Djaka Budhi Utama said the funds will support three main programmes: financial and economic fiscal policy, state revenue management, and management support. He also flagged seven challenges, including geopolitical uncertainty, climate-related financial risks, commodity price volatility, and the underground economy.

Son of former West Nusa Tenggara Governor denies involvement in PT Carsten case

Muhammad Ihsan, son of former West Nusa Tenggara Governor Zulkieflimansyah, has denied any involvement in an Rp11 billion working capital financing case involving PT Carsten Group Indonesia. His lawyer said Ihsan resigned as chief executive of PT Samota Enduro Gemilang in April 2023 to pursue a master's degree in England, months before the financing agreement was signed. Prosecutors questioned him for around six hours as a witness in the ongoing corruption investigation.

Krakatau Eruption Changes Flight Routes for Indonesian Contingent Heading to Nagoya Asian Games

The eruption of Mount Krakatau has disrupted departures from Soekarno-Hatta International Airport, forcing some 32 members of the Indonesian Asian Games contingent travelling to Aichi-Nagoya 2026 to reroute via Surabaya. Chief de Mission Todotua Pasaribu said his team coordinated with the Ministry of Transport and airlines to keep the journey on track, with the airport closure affecting some international flights until 11 September.

Indonesia's Hajj Ministry and Uzbekistan Push to Develop Religious Tourism Cooperation

Indonesia's Ministry of Hajj and Umrah met with the Governor of Samarkand to strengthen bilateral cooperation on religious tourism and connectivity, including a proposed direct flight route between the two countries. Minister Mochamad Irfan Yusuf emphasised the deep historical ties between the two nations and invited Uzbek tourists to visit destinations beyond Bali. The minister noted that umrah travel in Indonesia is organised privately through PPIU operators, so discussions must continue with travel businesses.

5 Bogor-Manggarai KRL Journeys Cancelled This Evening — Here Is the List

KAI Commuter Indonesia has cancelled five electric train journeys on the Bogor-Manggarai route for Monday evening, citing intensive rolling stock maintenance. Earlier in the day, 17 Commuter Line journeys in Jabodetabek were also adjusted. The company apologised for the disruption and urged passengers to follow the latest travel information.

OJK records green sector financing reaching Rp93.70 trillion in July 2026

Indonesia's Financial Services Authority (OJK) reported that sustainable-finance-classified (KUKB) financing in the multifinance industry reached Rp93.70 trillion in July 2026, or 17.25 per cent of total disbursements. Green financing is seen as a growth area for multifinance and venture capital, though OJK stresses the need for risk management, prudence, good governance and consumer protection.

Bandung Automotive Market Remains Attractive, MG ZS Hybrid+ Introduced

MG Motor Indonesia has launched the MG ZS Hybrid+ in Bandung and West Java through a regional launch event held from 7-13 September at Trans Studio Mall. Company executives highlighted Bandung's large market potential and growing consumer openness to electrified vehicles, positioning the hybrid SUV as an efficient, modern option for daily mobility.

Pramono Reveals Weather Modification Plan for 7-8 September, Hopes Clouds Will Cooperate

Jakarta Governor Pramono Anung has announced plans for a weather modification operation (OMC) on 7-8 September 2026 to help manage volcanic ash over the capital. The operation depends heavily on favourable cloud conditions, which forecasters predict may materialise on those dates. The provincial government is also deploying water mist systems and distributing masks to mitigate the ash's impact on residents.

Prabowo rechecks tent needs for emergency schools in East Nusa Tenggara

President Prabowo Subianto reviewed requirements for field tents to serve as emergency schools for displaced children in areas of East Nusa Tenggara (NTT) affected by a magnitude 7.7 earthquake. Governor Emanuel Melkiades Laka Lena reported that more than 2,000 schools from primary to senior high school level were damaged, with an estimated 10,000 tents needed. The President also assessed requests for patrol vessels and standby aircraft for disaster mitigation across the province's many small islands.

UPDATE! Soekarno-Hatta Airport Remains Closed, Shutdown Extended Until 23:59 WIB

Flight operations at Soekarno-Hatta International Airport have been extended until 23:59 WIB on Monday, 7 September 2026, amid heightened eruptive activity from Mount Anak Krakatau. The closure, initially due to end on Sunday, has been repeatedly prolonged as volcanic ash poses risks to surrounding airspace. Passengers are urged to recheck their flight status through official airline channels or the InJourney Airports contact centre on 172.

Jakarta Provincial Government to Continue Water Mist Spraying Until Tomorrow

The DKI Jakarta Provincial Government will continue water mist spraying until Tuesday as a mitigation measure against volcanic ash from Mount Anak Krakatau. Governor Pramono Anung said the operation involves the fire service, disaster agency and public order officers, and that weather modification may be carried out if cloud conditions allow.

Three Former Democrat Members Join NasDem, Ready to 'Fight' in the 2029 Elections

Three former West Java Democratic Party cadres have officially joined the NasDem Party ahead of the 2029 general elections. They bring legislative experience from the West Java provincial parliament and are expected to strengthen NasDem's position in the region.

A Portion of Free Nutritious Meals Before the Poisoning Trauma

A mass food poisoning incident linked to the Free Nutritious Meal (MBG) programme affected some 748 patients, mostly santri and students in Sidoarjo, East Java, after meals supplied by SPPG Kalitengah. The authorities have suspended the kitchen for 30 days and dismissed its head, but legal experts argue the programme's weak legal framework demands deeper accountability. Victims and their families are now traumatised, with some calling for the programme's budget to be redirected to free schooling.

ATR Minister Reveals Rice Fields Being Converted Into Industrial Estates, Hotels and Restaurants

Land and Spatial Planning Minister Nusron Wahid has revealed that paddy fields across Indonesia continue to be converted into industrial zones, housing, hotels and restaurants, with seven provinces still below the government's 87% farmland protection target. Nationally, protected sustainable food farmland (LP2B) designation has reached 87.52%, meeting the 2029 target early. Food Coordinating Minister Zulkifli Hasan said the seven lagging provinces will be given time to raise their figures, but current designations must not fall.

National Police Chief Reminds Officers to Maintain Close Ties with Residents to Prevent Social Conflict

National Police Chief General Listyo Sigit Prabowo has instructed his officers to prioritise prevention and mitigation when handling social conflicts, with law enforcement as a last resort. Speaking through Deputy Chief Comr Gen Dedi Prasetyo at a parade in Cikeas, Bogor, he urged officers to understand local problems and build close relationships with community figures. Firm action, he said, must be measured, professional and guided by the principle of ultimum remedium.

Broadcasters urged to intensify information on volcanic ash impacts

The Indonesian Broadcasting Commission for DKI Jakarta has called on television and radio broadcasters to intensify accurate, verified and proportionate information on the impacts of volcanic ash from Mount Anak Krakatau. The appeal aligns with mitigation steps taken by the Jakarta provincial government, including air quality monitoring and remote learning, and reminds broadcasters to comply with broadcasting conduct guidelines, particularly in disaster coverage.

Indonesian Red Cross Distributes One Million Masks to Residents Affected by Mount Anak Krakatau Eruption

The Indonesian Red Cross (PMI), chaired by Jusuf Kalla, is stepping up humanitarian operations across the country in response to a series of disasters including floods in Sumatra, drought, an earthquake in East Nusa Tenggara, forest fires and the eruption of Mount Anak Krakatau. PMI is distributing one million masks to communities exposed to volcanic ash and smoke, whilst also running relief operations in NTT and deploying over 100 water tanker trucks to drought-hit regions.

The HGU Moratorium and Investment Uncertainty

The Minister of Agrarian Affairs and Spatial Planning has imposed a moratorium on the issuance, extension and renewal of HGU land rights affecting 1.67 million hectares of pending applications. The author argues that this discretionary freeze, lacking a formal transitional regulation, threatens legal certainty, corporate financing and Indonesia's investment climate, and could trigger domestic and international legal disputes.

Multifinance Financing Still Growing Modestly, NPF Edges Up Slightly

Financing receivables at Indonesian multifinance companies grew just 2.01% year-on-year to Rp513.05 trillion in July 2026, supported mainly by working capital financing. Gross non-performing financing rose to 3.03% from 3.01% in June, though the OJK says the sector's risk profile remains sound, with a gearing ratio of 2.10 times, well below the maximum of 10 times. Multifinance growth lagged far behind peer industries, with online lending up 24.76% and pawnbroking financing up 50.73% year-on-year.

DKI Jakarta Provincial Government Extends Remote Learning to Anticipate Volcanic Ash Spread

Jakarta Governor Pramono Anung Wibowo has extended distance learning for all schools in the capital until 8 September as a precaution against potential volcanic ash exposure. The decision follows Circular Letter Number 91/SE/2026 issued by the provincial Education Office on 5 September 2026, which applies to all public and private education units from early childhood to senior secondary level.

Deputy Police Chief Orders Corporate Probe into Forest Fires: Do Not Stop at Field-Level Perpetrators

Deputy National Police Chief Commissioner General Dedi Prasetyo has instructed 322 personnel deployed for forest and land fire prevention to pursue corporate accountability rather than stopping at field-level perpetrators. He urged a shift towards predictive policing using hotspot data, weather, peatland conditions and technology such as drones, satellites and artificial intelligence. As of 6 September 2026, 113,616 hotspots had been recorded with 202,010 hectares of land burned across 38 provinces.

Deputy Police Chief Orders Personnel on Alert for Black September Action

Deputy National Police Chief Commissioner General Dedi Prasetyo has ordered all personnel to prepare for the so-called Black September protests, predicted to centre on 24 September 2026, coinciding with National Farmers' Day and the Semanggi II commemoration. Speaking at a troop parade in Cikeas, Bogor, he stressed that whilst freedom of expression must be protected, the police must prevent social conflicts from escalating and undermining public security and order.

On Asset Forfeiture Bill, House Commission III Stresses Anti-Corruption Efforts Must Not Be Arbitrary

Deputy Chairman of House Commission III Ahmad Sahroni has asserted that deliberations on the Asset Forfeiture Bill must strengthen corruption eradication without opening the door to abuse of power by law enforcement. Speaking at a public hearing with Peradi Professional and Shri Hardjuno Wiwoho, he urged clear limits and mechanisms around asset seizure powers. He also called for careful drafting and public education to avoid misunderstandings once the law takes effect.

PT KAI subsidiary indicted for paying Rp1.36 billion in bribes to five Transport Ministry civil servants

PT KA Properti Manajemen, a subsidiary of PT Kereta Api Indonesia, has been indicted for paying Rp1.36 billion in bribes to five civil servants at the Ministry of Transportation to secure a railway level-crossing works package for the 2022 fiscal year. Prosecutors say the company gained Rp2.41 billion from the contract, with bribes allegedly paid by its former chief executive and vice president between 2022 and 2023. The firm faces charges under Indonesia's anti-corruption law.

Indonesia's 2026 fire season strains ASEAN haze response

Indonesia's 2026 forest and land fire season is testing the region's ability to respond quickly to transboundary haze, with smoke reaching Malaysia, Singapore, Brunei and the Philippines and disrupting transport and schools. Authorities, led by BNPB and the Foreign Affairs Ministry, are coordinating through the ASEAN Agreement on Transboundary Haze Pollution, with a Regional Alert Level 3 in force and Malaysia conducting cloud-seeding operations. The season serves as a benchmark for whether earlier information, faster decisions and closer regional cooperation can reduce the scale and duration of haze impacts.

ULM brings in German expert to discuss diamond geological exploration in Kalimantan

The Faculty of Engineering at Lambung Mangkurat University hosted a guest lecture featuring Dr Nico Küter from RWTH Aachen University, Germany, on the diamond geology of Kalimantan. The event, attended by 144 participants from various institutions, also featured speakers from UPN 'Veteran' Yogyakarta's Mineral and Energy Study Centre. The lecture formed part of the faculty's 61st anniversary celebrations and aimed to deepen academic understanding of the tectonic setting and geological processes behind Kalimantan's diamond deposits.