Indonesian Political, Business & Finance News

Archive: 7 September 2026

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Indonesia's Financial Literacy Beats 2029 Target, Three Years Early

Indonesia's financial literacy index has reached 69.57% and its financial inclusion index 93.61%, surpassing the 2025-2029 RPJMN targets three years ahead of schedule. The milestone, based on the 2026 SNLIK survey by OJK, LPS and BPS, was driven by massive education programmes. OJK has conducted thousands of outreach activities, including the Sikapi Uangmu platform and the OJK Peduli literacy ambassador programme.

Transport Minister: Airport Paper Tests Negative for Ash, but South Sumatra and Lampung Still Affected

Transport Minister Dudy Purwagandhi said paper tests at several airports show no volcanic ash, but flights remain constrained in parts of South Sumatra and Lampung based on Darwin's Volcanic Ash Advisory Centre data. Soekarno-Hatta Airport's closure has been extended until 24.00 WIB to allow runway cleaning and aircraft preparation. The ministry is adopting a conservative approach, prioritising safety over speed in resuming operations.

Prize Amounts Questioned, Government Prepares New Scheme for High-Achieving Students

The Ministry of Primary and Secondary Education is seeking additional budget sources to increase prize money for winners of national talent competitions, after the rewards for the 2026 National Science Olympiad (OSN) were criticised as too small. Minister Abdul Mu'ti apologised for the modest amounts but stressed that appreciation forms part of a broader talent management scheme under Ministerial Regulation No. 25 of 2025. The National Talent Management Centre (Puspresnas) said winners will continue to receive coaching aimed at international competitions.

Central Java Government prepares alternative routes for MTQ contingents in anticipation of eruption

The Central Java Provincial Government is preparing alternative transport routes, including rail, for contingents travelling to the National Musabaqah Tilawatil Quran (MTQ) event in Semarang, amid potential flight disruption from the eruption of Mount Anak Krakatau. Ahmad Yani International Airport in Semarang has extended operations to 24 hours to accommodate diverted or unscheduled flights.

Indonesia Promotes Inclusive Financing and Entrepreneurship Ecosystem at APEC

Indonesia's Minister of Micro, Small and Medium Enterprises, Maman Abdurrahman, presented the country's commitments to inclusive financing and entrepreneurship development at the 32nd APEC SME Ministerial Meeting in Guangzhou, China. He highlighted record KUR disbursements of Rp286 trillion to 4.5 million MSMEs in 2025, with productive sectors receiving over 60 per cent of funds for the first time in a decade. Indonesia also outlined reforms including lower Mekaar financing rates for women entrepreneurs and a national entrepreneurship target of 8 per cent by 2045.

Telkom (TLKM) Reveals 2026 Fiscal Year Dividend Plan, Payout Ratio Proposed at This Level

PT Telkom Indonesia (TLKM) has signalled that it will maintain a dividend payout ratio of 60-90% of net profit for the 2026 fiscal year, subject to shareholder approval at the AGM. The policy balances shareholder returns with the company's expansion and investment needs. Telkom reported consolidated revenue of Rp75.9 trillion in the first half of 2026, up 3.9% year on year.

Andre Rosiade Backs Batam as Data Centre Hub, Urges Gas and Electricity Availability

Deputy Chair of Commission VI of the House of Representatives, Andre Rosiade, has voiced support for Batam to become a major data centre investment hub in Indonesia, contingent on adequate land and electricity supply. He stressed the need to guarantee competitively priced gas for PLN Batam and said Commission VI would coordinate with Commission XII on gas supply issues. He also revealed that Telkom Indonesia is preparing tenders for data centre facilities in Batam and Cikarang.

China's top court posts guidelines on deepfakes, AI disputes

China's Supreme People's Court has issued judicial guidelines governing AI-related disputes, banning the creation or distribution of recognisable digital replicas of individuals — such as cloned faces and voices — without their consent. The rules also address algorithmic price discrimination and AI-generated false information, holding service providers legally liable if they fail to act on infringing content. The move seeks to balance technological development with security amid China's intensifying AI rivalry with the United States.

24 Regencies/Cities in East Java Declare Drought Emergency Status

The drought crisis in East Java has widened, with 24 regencies and cities declaring emergency alert or disaster response status, according to BPBD East Java. Three areas on Madura Island are the worst affected, and 20 regencies have begun distributing clean water, supported by over 5,400 tanker deliveries and some 1,400 water tanks.

Ateng Sutisna Urges Government to Strengthen Mitigation Ahead of Anak Krakatau Eruption

Ateng Sutisna, a member of the DPR's Commission XII, has called on the government to strengthen disaster mitigation and preparedness as Mount Anak Krakatau remains at Level III alert. Volcanic ash has spread as far as Banten, Jakarta, West Java and parts of Sumatra, disrupting flights, prompting calls for cross-sector readiness. He cautioned the public against assuming a tsunami is imminent, noting BMKG monitoring shows no sea-level anomalies, but stressed that uncertainty is no reason for complacency.

House Fire in Bogor Suspected to Have Been Triggered by Overheated Spray Canisters

A house in Pasirlaya, Sukaraja District, Bogor, West Java, caught fire, with authorities suspecting the blaze was caused by a pile of overheated spray canisters. Firefighters extinguished the flames in under 30 minutes using a cooling system approach, and no casualties were reported.

To Prevent the Impact of Volcanic Ash from Mount Anak Krakatau's Eruption, Cianjur Implements Remote Learning

The Cianjur Regency Government in West Java has suspended face-to-face learning and switched to online classes for two days in response to volcanic ash from the eruption of Mount Anak Krakatau. The local education office cited declining air quality as a health hazard, instructing schools to use digital platforms and urging residents to wear masks and stay indoors. Health facilities are operating around the clock to respond to a potential surge in patients.

Home Affairs Minister: Economic growth is the key to escaping the middle income trap

Home Affairs Minister Muhammad Tito Karnavian has called on all parties to drive high national economic growth, ideally reaching double digits, to lift Indonesia out of the middle income trap. Speaking at an inflation control coordination meeting in Jakarta, he outlined four key components — household consumption, government spending, investment, and export growth — that central and regional governments must strengthen together.

The effects of volcanic ash exposure on vehicles

An automotive expert from Bandung Institute of Technology (ITB) has warned that volcanic ash from volcanic eruptions can damage vehicles if not handled carefully. Unlike ordinary dust, volcanic ash has sharp, coarse grains that can scratch paint and glass, while its sulphate and chloride compounds pose corrosion risks.

45 Listed Companies Open Up at Public Expose Live 2026, Giving Investors Insight into Business Direction and Strategy

Forty-five listed companies are taking part in Public Expose Live 2026, held virtually from 7 to 11 September 2026, offering investors direct access to management on performance, strategy and business prospects. The annual event is organised by Indonesia's Self-Regulatory Organisations — the IDX, KPEI and KSEI — with support from the Financial Services Authority (OJK), as part of celebrations marking 49 years since the reactivation of Indonesia's capital market.

Transnusa Adjusts Operations Due to Mount Anak Krakatau Volcanic Ash

Transnusa airline has adjusted its flight operations, including delays and rerouting, following the spread of volcanic ash from Mount Anak Krakatau. The airline is coordinating with the Directorate General of Civil Aviation, AirNav Indonesia, BMKG and VAAC Darwin, and is offering affected passengers free rescheduling, refunds and other support services.

Attorney General's Office Names Toba Pulp a Suspect in Alleged Transfer Pricing Case

The Attorney General's Office has designated PT Toba Pulp Lestari Tbk (INRU) as a corporate suspect in an alleged transfer pricing corruption case covering 2008 to 2025, with state losses estimated at Rp2 trillion. Prosecutors say the company manipulated HS Codes through under-invoicing, exporting dissolving pulp as cheaper paper grade pulp, and colluded with tax officials to avoid scrutiny.

Two Dhoho Kediri Airport flights cancelled due to Anak Krakatau eruption

Two Super Air Jet flights between Kediri and Jakarta were cancelled after volcanic ash from Mount Anak Krakatau forced the temporary closure of Soekarno-Hatta Airport. Affected passengers are entitled to a full refund or free rebooking until 13 September 2026. Dhoho Kediri Airport is coordinating with BMKG, AirNav Indonesia and airlines to monitor the situation.

Pertamina Patra Niaga Distributes 8,100 Meals for National Customer Day 2026 as MSMEs Cook with Bright Gas Simultaneously in Eight Cities

Pertamina Patra Niaga marked National Customer Day 2026 by distributing 8,100 portions of spiced soy chicken cooked with Bright Gas by MSMEs and communities across eight Indonesian cities. The simultaneous cooking event, centred at Gelora Bung Karno in Jakarta, saw meals handed out free via fuel stations, orphanages and social institutions.

Bengkulu ships 19.2 tons of coffee directly to Italy

Bengkulu Province has sent its first direct coffee export of 19.2 tonnes to Italy, a historic milestone that allows the region to claim recognition as a producer and exporter in its own name. Vice Governor Mian and Bank Indonesia's Wahyu Yuwana Hidayat stressed the need for sustained upstream-to-downstream production and collaboration with stakeholders so the shipment becomes a regular export activity that boosts farmer welfare.

Primary School Teacher Sexually Abuses 13 Pupils in West Sumba, Police Open Reporting Post

Police in West Sumba, East Nusa Tenggara, have opened a reporting post after a private primary school teacher, Marselinus Munceng alias MM, allegedly sexually abused 13 pupils between October 2025 and June 2026. The abuse reportedly occurred during private tutoring sessions at the school, and authorities believe there may be more victims who have yet to come forward.

Why the Transport Minister Extended Airport Closures Despite Negative Paper Tests

Transport Minister Dudy Purwagandhi extended the closure of seven airports affected by volcanic ash from Mount Anak Krakatau until Monday evening, citing highly dynamic wind conditions and the need for official confirmation from the VAAC Darwin. Nearly 3,000 flights and around 341,000 passengers have been affected. The extension also gives airport operators and airlines time to clean and inspect facilities and aircraft.

Village Minister Submits Recommendations for the Agrarian Reform Bill to DPR's Legislative Body

Minister of Villages and Development of Disadvantaged Regions Yandri Susanto presented a series of recommendations to the House of Representatives' Legislative Body (Baleg DPR RI) during deliberations on the Agrarian Reform Bill. He highlighted that 34,323 villages lie within forest areas, home to roughly 72.28 million people who face legal uncertainty over their land. His recommendations cover post-redistribution action plans, protection periods for redistributed land, spatial planning compliance, a strong role for village governments, and transparent procedures for releasing land from forest zones.

Facing the Threat of Eruption, MUI Urges the Public to Strengthen Mitigation and Prayer

The Indonesian Ulema Council (MUI) has urged communities around Mount Anak Krakatau to strengthen disaster mitigation and vigilance amid eruption threats. MUI fatwa committee chairman KH Asrorun Ni’am Sholeh said that whilst volcanic eruptions are natural phenomena beyond human control, people must combine practical preparedness—heeding official warnings from BMKG and volcano observation posts—with spiritual efforts such as prayer and reflection.

Police Hunt Accomplice of Indian National's Bag Snatcher in Menteng

Central Jakarta Metro Police are pursuing a suspect identified as RK, who snatched a mobile phone from an Indian national on Jalan Gondangdia, Menteng. His accomplice, NJ, a repeat offender who previously targeted a TNI member near Monas, has already been arrested. Both face up to seven years in prison under Article 477 of the 2023 Criminal Code for aggravated theft.

BIJB Operator Makes Preparations Before Becoming a Diversionary Landing Airport

West Java International Airport (BIJB) Kertajati has been prepared as an alternate landing site after volcanic ash from Mount Anak Krakatau forced the temporary closure of Soekarno-Hatta Airport. Two Garuda Indonesia flights from Madinah and Jeddah, carrying a combined 663 passengers, landed safely at Kertajati following ash-distribution tests and coordination with AirNav and the Ministry of Transport.

Video: 5 Volcanoes on Alert Status — What Is Happening in Indonesia?

Five Indonesian volcanoes were placed on Level III alert status as of Sunday, 6 September 2026, with several others erupting in close succession. The development serves as a reminder that Indonesia sits alongside some of the world's greatest natural forces, prompting questions about how serious the current volcanic conditions are and what the public should watch for.

Health Minister Warns of Dangers of Volcanic Ash: Stay Indoors

Health Minister Budi Gunadi Sadikin has urged residents affected by ash from the Mount Anak Krakatau eruption to stay indoors for a week, or wear masks and goggles if they must go outside. He warned that silica particles in the ash can damage the lungs and that the sharp dust can irritate the skin. The volcano's activity has intensified, spreading ash across Lampung, Banten, Jakarta and West Java, and prompting temporary flight closures.

AQUA presents production process to retail partners in Sukabumi

AQUA hosted management and staff representatives from the Indomaret and Indogrosir groups at its Mekarsari plant in Sukabumi, West Java, to showcase its production and quality control processes. The visit, part of the company's 'Kaum Adem' hydration campaign, comes ahead of mandatory Indonesian National Standards (SNI) for bottled drinking water taking effect in October 2026 under Industry Ministerial Regulation No. 62 of 2024.

Thought to Be Melting, Ice in the South Pole Instead Gains 695 Billion Tonnes

East Antarctica's ice sheet gained 695 billion tonnes of mass over three years, the largest increase ever recorded by satellite observation. Researchers from the Chinese Academy of Sciences found that warming tropical seas in the western Pacific and eastern Indian Ocean altered atmospheric pressure patterns, channelling moisture towards East Antarctica and triggering heavy snowfall. Scientists caution the gain is temporary, as Antarctica continues to lose an average of 140.5 billion tonnes of ice annually.

Prabowo orders comprehensive disaster mitigation master plan

President Prabowo Subianto has ordered a comprehensive disaster mitigation master plan, citing Indonesia's position on the Ring of Fire and ongoing crises including the Flores earthquake recovery, Mount Anak Krakatau's volcanic activity, and widespread forest fires. He instructed his cabinet to preposition disaster management resources, increase the mitigation budget, and procure additional equipment such as helicopters, fire engines, and heavy-lift drones for aerial firefighting.

Central Java Government: Weather Modification to Speed Up Extinguishing of Putri Cempo Landfill Fire

The Central Java Provincial Government is coordinating with the National Disaster Management Agency (BNPB) to conduct weather modification operations to accelerate extinguishing the fire at the Putri Cempo landfill in Surakarta, now in its fifth day. The blaze is larger than the 2023 fire, which took around 24 days to handle. Governor Ahmad Luthfi has ordered a comprehensive response, with resident safety and health protection measures prioritised.

Visit of Crown Princess Victoria further raises NTB's global profile

West Nusa Tenggara Governor Lalu Muhamad Iqbal said the visit of Sweden's Crown Princess Victoria has elevated the province's international standing. The three-day visit highlighted NTB's long-standing cooperation with UNDP, from post-earthquake recovery to blue economy initiatives. NTB has previously hosted eleven ambassadors and numerous international delegations.

Bandung's Husein Airport records 1,365 passengers affected by Krakatau eruption

Bandung's Husein Sastranegara International Airport recorded 1,365 passengers affected by flight cancellations after volcanic ash from the Mount Anak Krakatau eruption was detected in the airport area. Fourteen domestic flights, comprising seven departures and seven arrivals, were cancelled for safety reasons. The airport is providing recovery services to stranded passengers as it awaits conditions to be declared safe.

Agrarian reform delivers justice and improves residents' welfare

The head of the Jakarta regional parliament's special committee on agrarian reform and systematic land registration has stressed that land certificates alone are not the goal—reform must deliver justice and sustainable welfare. Three urban villages in Ancol, North Jakarta—Lodan, Tongkol and Kerapu—have been proposed as Agrarian Reform Object Land (TORA), with collective ownership suggested to protect residents from market-driven displacement.

The hunt for tutoring tickets: when parents sit the exam

Long queues before dawn outside a tutoring centre in Gondokusuman, Yogyakarta—dubbed a 'ticket hunt' online—reveal parents' collective anxiety over scarce, affordable, reputable learning support. The phenomenon signals serious questions about access inequality and educational quality, but schools remain primarily responsible for meeting every pupil's essential learning needs.

Affected by volcanic ash from Mount Anak Krakatau eruption, dozens of flights cancelled at several airports

Volcanic ash from the eruption of Mount Anak Krakatau has forced the temporary closure of Soekarno-Hatta Airport and disrupted flights across multiple Indonesian airports. Dozens of flights were cancelled or rescheduled, including 44 at Kualanamu International Airport and 49 on the Pontianak-Jakarta route, leaving passengers stranded.

OJK Records Online Loan Financing at Rp105.63 Trillion in July 2026

Indonesia's Financial Services Authority (OJK) reported that outstanding financing from online lending platforms (pinjol) grew 24.76 per cent year-on-year to Rp105.63 trillion in July 2026. The 90-day non-performing loan ratio remained manageable at 4.32 per cent, though seven of 94 lenders have yet to meet the minimum Rp12.5 billion equity requirement, and 34 operators were sanctioned in August.

Thousands of Indonesians Deceived by AI!

Indonesia's Financial Services Authority (OJK) has received 1,379 reports of fraud suspected of exploiting artificial intelligence up to June 2026. OJK warned that scammers are increasingly using deepfakes, cloned voices, fake identities and AI-based trading robots. OJK and the Satgas PASTI illegal financial activities task force are strengthening detection, cyber patrols and coordination with platforms such as Google, Meta and TikTok.

Volcanic Ash Test Negative, Soekarno-Hatta Airport Remains Closed Until 23.59 WIB

Seven airports under the Class I Major Airport Authority, including Soekarno-Hatta, remain closed until 23.59 WIB on Monday due to volcanic ash from the eruption of Mount Anak Krakatau. The closure was extended as volcanic activity continues, with authorities urging passengers to check flight status through official airline channels.

Manpower Ministry backs stronger industrial relations governance in SOEs

The Ministry of Manpower is supporting the strengthening of industrial relations governance within state-owned enterprises (SOEs) amid the government's restructuring and consolidation agenda. Director General Indah Anggoro Putri said the ministry, together with the SOE Regulatory Body, will uphold a "no one left behind" principle to ensure workers' rights are protected throughout the streamlining process, in line with Presidential Instruction No. 7 of 2026.

Not Just About Land: DPR Highlights Children's Trauma in the Sukajaya Bogor Agrarian Conflict

The House of Representatives' Public Aspiration Body (BAM) has raised concerns over an agrarian conflict in Sukajaya Village, Bogor, where farming families claim to have lost their land and livelihoods, with children reportedly traumatised by the violence. Deputy BAM Chair Taufiq R. Abdullah questioned the legitimacy of a 150-hectare Building Use Rights certificate that allegedly covers rivers, roads, villages and public facilities. Two agreements were reached: a review of the certificate and a push to grant communal ownership rights to residents who have worked the land for generations.

BPJS Duo Strengthen Synergy to Ensure Workers Are Protected by Social Security

BPJS Kesehatan and BPJS Ketenagakerjaan have signed a cooperation agreement to strengthen joint oversight and compliance inspections of employers in running social security programmes. The two agencies, which exchange data four times a year, have jointly inspected 2,429 companies as of July 2026. Officials say improved compliance also supports premium revenue collection and the sustainability of the national health insurance programme (JKN).

Malang Police Seize 1,770 Bottles of Illegal Alcohol During Cipta Kondisi Operation

Malang Resort Police seized 1,770 bottles of illegal alcoholic drinks during a series of raids conducted under the Cipta Kondisi Operation across 30 districts. Police spokesperson AKP M Budiono said the operation was preventive in nature, accompanied by education for business owners, and urged the public to report illegal alcohol sales via the 110 call centre.

Husein Sastranegara Airport Temporarily Closed, Eight Flights Affected

Volcanic ash from the eruption of Mount Anak Krakatau prompted the temporary closure of Bandung's Husein Sastranegara International Airport, affecting eight flights and 1,344 prospective passengers. InJourney Airports activated service recovery measures for stranded passengers, whilst the Bandung city government monitors the situation before issuing further public advisories.

Flights in Lampung still disrupted by Krakatau eruption

Volcanic ash from the eruption of Mount Anak Krakatau forced the cancellation of 29 flights at Radin Inten II International Airport in Lampung up to 18:00 local time on Monday. Affected services included Citilink, Garuda Indonesia, AirAsia, Lion Air, Batik Air and TransNusa routes to Jakarta and Kuala Lumpur. The airport has activated service recovery measures for stranded passengers and urged travellers to monitor official airline channels.

Bogor Deputy Mayor Loses Temper and Throws Helmet at Man Urinating in City Square

Bogor Deputy Mayor Jenal Mutaqin confronted a man caught urinating in a corner of Bogor City Square, throwing a helmet at his leg in frustration. The incident occurred during a night operation spraying streets to clear volcanic ash from the eruption of Mount Anak Krakatau. Jenal said the square frequently smells of urine despite public toilets being available, and ordered the man to hose down parts of the square as a deterrent.

Viral Video of Receding Sea Near Anak Krakatau Coast, BMKG Gives Explanation

A video showing the sea receding along the coast near Mount Anak Krakatau in the Sunda Strait went viral on social media, prompting fears of a tsunami. The BMKG stated that monitoring of 20 tide gauges and seismic networks showed no signs of a landslide, underwater mass movement or tectonic earthquake, and there was no tsunami threat, whilst urging the public to remain vigilant.

Indonesia says skilled workers key to high-integrity carbon market

Senior advisor to the Forestry Minister, Edo Mahendra, has said that human resource development must accompany Indonesia's regulatory framework for forestry-sector carbon trading, including recent presidential and ministerial regulations. Officials stressed the need for professionals skilled in carbon data management, MRV, safeguards and market mechanisms, with the aim of ensuring carbon trading delivers real emission reductions, benefits local communities and supports Indonesia's climate targets.

Health Minister Needs Rp1.39 Trillion to Repair Damaged Hospitals and Puskesmas in NTT

Health Minister Budi Gunadi Sadikin has requested around Rp1.39 trillion from President Prabowo Subianto to repair health facilities damaged by natural disasters in East Nusa Tenggara. The damage assessment covers 165 puskesmas and 12 hospitals, with 34 puskesmas and two hospitals completely destroyed. President Prabowo has instructed the ministry to formally submit its budget requirements for the reconstruction effort.