Indonesian Political, Business & Finance News

Archive: 7 September 2026

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Viral Car Abandoned for 3 Days in Ngaglik, Sleman — Here's How It Ended

A silver car left parked for three days in Candi Karang Hamlet, Sardonoharjo, Ngaglik, Sleman, went viral on social media after residents could not identify its owner. Local RT chairman Nur Hadiyantoro confirmed the vehicle was left by a woman in the early hours of Friday, and it turned out to belong to a lodger from Baciro. The owner retrieved the car after the story spread online and apologised to residents.

Landed Housing Land in Sydney Becomes Increasingly Scarce

Sydney needs at least 800,000 additional homes by 2046, but geographic constraints and urbanisation are making landed housing increasingly scarce. Foreign buyers, including Indonesians, face further restrictions under Australia's ban on established dwelling purchases. Areas such as Roselands in south-west Sydney are attracting attention for offering landed homes with metropolitan access and a strong owner-occupier base.

Responding to Krakatau Eruption, Jakarta Traffic Police Distribute Masks to Ride-Hailing Drivers

The Traffic Directorate of the Jakarta Metropolitan Police distributed 20,000 masks to online motorcycle taxi drivers at three locations in Jakarta to protect them from volcanic ash following the eruption of Mount Anak Krakatau. The National Disaster Management Agency (BNPB) is also preparing weather modification operations to induce rain and settle the airborne ash, which has disrupted residents' mobility and flight schedules.

Understanding the Code Blue System in the Medical World

Code Blue is a hospital emergency activation system signalling that a patient is in a critical condition, such as cardiac or respiratory arrest, requiring immediate response from a specially trained medical team. Doctors from Mayapada Hospital explain that survival depends on rapid response, clinical precision and well-coordinated teams trained in Basic Life Support and Advanced Cardiovascular Life Support. Mayapada Hospital Surabaya recently won the top prize in East Java's Code Blue and Basic Life Support competition.

Andrie Yunus Still Undergoing Series of Operations, Vision Remains Limited

Andrie Yunus, External Deputy Coordinator of KontraS, continues to undergo intensive medical treatment following an acid attack in March 2026, with his vision severely limited to only perceiving light. A military high court has overturned the dismissal penalties and reduced the prison sentences of the four military defendants convicted of the attack.

South Tangerang Police Spray Serpong Main Road to Reduce Impact of Volcanic Ash

South Tangerang Police deployed water cannon vehicles and fifteen personnel to wash volcanic ash from the roads following the eruption of Mount Anak Krakatau. The National Disaster Management Agency (BNPB) is preparing a Weather Modification Operation to induce rain and settle the lingering ash, which has disrupted community activities and aviation.

Deputy Chair of Commission IX Calls on National Nutrition Agency to Fundamentally Revamp Free Nutritious Meals Programme

Charles Honoris, Deputy Chair of DPR Commission IX, has urged the National Nutrition Agency (BGN) to shift the Free Nutritious Meals (MBG) programme from centralised kitchens to school-based kitchens, citing mass food poisoning incidents. Data shows 50,059 victims across 460 poisoning cases in 36 provinces. He also called for compensation for existing SPPG kitchens if the system is converted.

Thailand Struck by Flash Floods

Heavy rainfall triggered flash floods in northern Thailand, damaging infrastructure in Mae Hong Son province and prompting emergency responses along the border with Chiang Rai. Health facilities are operating around the clock amid warnings of further rain, while authorities deploy troops and officials to reinforce river embankments with sandbags.

Attorney General's Office takes over alleged corruption case involving PT PSMI in Lampung

The Attorney General's Office (Jampidsus) has taken over the handling of an alleged corruption case concerning the use of forest areas for plantations by PT PSMI on land belonging to PT Inhutani V in Lampung. Investigators have examined 47 witnesses and seized documents, with 1,268 hectares of sugar cane plantation found to overlap with the Inhutani concession, allegedly causing state financial losses. PT PSMI previously deposited Rp100 billion to the Lampung High Prosecutor's Office as restitution for the alleged state losses.

Beyond the Giant Sea Wall, Jakarta to Get Coastal Protection Projects

The Government has included the Giant Sea Wall in its 2027 Government Work Plan (RKP), alongside a coastal protection programme covering Jakarta and several other vulnerable coastal areas. The Directorate General of Water Resources at the Ministry of Public Works has been allocated Rp30.66 trillion for 2027, an increase of Rp5.23 trillion on the indicative ceiling, with targets including 800 kilometres of flood-control infrastructure by 2029.

BNPB Reports to Prabowo That Forest Fire Perpetrators in Jambi Were Deliberately Paid Rp500,000 to Burn Forests

The head of the National Disaster Management Agency (BNPB), Lieutenant General Suharyanto, told President Prabowo Subianto that forest fires in Jambi were deliberately set, with perpetrators paid Rp500,000 each. Similar indications were found in West Kalimantan, where recently burned areas had already been converted into palm oil planting plans. Prabowo ordered further investigation into whether corporations were involved and demanded the names of 8 to 18 suspect corporations, threatening to revoke their permits and land-use rights.

Cimahi Police distribute masks to schoolchildren to mitigate volcanic ash impact

Cimahi Police have distributed masks to pupils at several schools to protect them from volcanic ash carried by wind from Mount Anak Krakatau to the Greater Bandung area. A disaster expert warned that volcanic ash particles are sharp, corrosive and capable of penetrating deep into the respiratory system, whilst the West Java Provincial Government has permitted schools to switch to remote learning if conditions worsen.

Sahroni Says Asset Forfeiture Bill Must Strengthen Corruption Eradication Efforts

Deputy Chairman of Commission III of the House of Representatives, Ahmad Sahroni, has stressed that deliberations on the Asset Forfeiture Bill must strengthen corruption eradication without opening the door to abuse of power by law enforcement. He called for clear limits and mechanisms to accompany any asset seizure authority, alongside public education on the regulation. His remarks came during a public hearing with the Indonesian Bar Association (Peradi) and Shri Hardjuno Wiwoho at Parliament.

Constitutional Court Confirms Teachers Cannot Be MBG Supervisors

The Constitutional Court has ruled inadmissible a petition by Herifuddin Daulay seeking to involve teachers as supervisors in the free nutritious meal (MBG) programme under the 2026 State Budget Law. The court also rejected a separate challenge to the new Criminal Procedure Code concerning corporate liability.

Corporation Named Suspect in Pulp Export Case, State Losses Reach Rp2 Trillion

The Attorney General's Office has named PT TPL Tbk a suspect in an alleged corruption case involving pulp exports and sales between 2008 and 2025. Investigators suspect manipulation of HS codes, under-invoicing and transfer pricing practices with affiliated companies, causing state losses of up to Rp2 trillion.

Flight closures at Soekarno-Hatta continue until 23.59 WIB

AirNav Indonesia has extended the temporary closure of airspace at Soekarno-Hatta International Airport in Tangerang until 23.59 WIB on Monday, due to volcanic ash from the eruption of Mount Anak Krakatau. The closure, announced via an updated NOTAM, continues to be monitored in coordination with aviation stakeholders.

Indonesia Stocks Close Lower as Middle East Risks Offset FX Reserves

Indonesian stocks fell 0.25% to 6,619 as renewed Middle East tensions and stronger-than-expected US jobs data led investors to turn cautious, outweighing positive sentiment from Indonesia's rising foreign exchange reserves. Bank Indonesia's reserves reached $146.5 billion at the end of August, sufficient for roughly 5.4 months of imports, though concerns over oil supply disruptions and the eruption of Mount Anak Krakatau kept markets on edge.

Three North Jakarta Kampung Proposed as Agrarian Reform Land Objects

Three urban kampung in the Ancol area of North Jakarta—Kampung Lodan, Kampung Tongkol, and Kampung Kerapu—have been proposed as Agrarian Reform Land Objects (TORA) to secure land rights and improve residents' welfare. The North Jakarta administration and the DKI Jakarta regional parliament are working together on the proposal, which will be submitted through Governor Pramono Anung. Officials also see tourism potential given the areas' long history.

Credit growing faster than third-party funds: banking liquidity must be safeguarded

Financial planner Elvi Diana has urged the government to prepare mitigation measures as bank credit growth of 13.6 percent year-on-year in July 2026 outpaced third-party fund growth of 11.21 percent. She recommended stronger granular liquidity monitoring, targeted liquidity incentives, diversified funding sources, and maintaining credit quality. She warned that credit expansion must not create new vulnerabilities in the financial system.

Forest fire team uncovers illegal encroachment in Ketapang

A joint team tackling forest and land fires in Ketapang, West Kalimantan, discovered suspected illegal land clearing within a Conversion Production Forest area, seizing an excavator and securing two suspects. Investigators are pursuing possible involvement of landowners and financiers, with penalties of up to 10 years' imprisonment and fines of up to Rp7.5 billion. The finding came as crews battled fires that had burned in Sungai Awan Kiri village since mid-August 2026.

Heavy rain triggers flash floods in northern Thailand

Torrential rainfall of 76.2 millimetres triggered flash floods in Thailand's Mae Hong Son Province, submerging at least 20 homes and damaging key road infrastructure near the Chiang Rai border. Local authorities have closed damaged roads and deployed military personnel to reinforce river embankments amid warnings of continued rain.

Mbah Rono: Mount Anak Krakatau Can Naturally Erupt Again

Volcanology expert Surono, known as Mbah Rono, says Mount Anak Krakatau in Lampung remains capable of further eruptions as part of its natural growth phase following the 2018 collapse. He warned that ash clouds could again disrupt operations at nearby strategic assets such as Soekarno-Hatta and Raden Inten airports. The Energy and Mineral Resources Ministry's Geology Agency reported that the continuous eruption episode has ended, but seismic activity remains high and the alert level stays at Level III (Siaga).

PT KAI and Bogor City Government Align on Revitalisation of Bogor Station

PT Kereta Api Indonesia (KAI) and the Bogor City Government have signed a memorandum of understanding to revamp Bogor Station and its surrounding area as an integrated transport hub. The revitalisation rests on three pillars: connectivity, heritage identity, and transit-oriented spatial development. The station now serves around 130,000 commuter rail passengers daily, up from roughly 100,000 a year earlier.

49 Named Suspects Over Forest and Land Fires in Riau

Riau Regional Police have handled 45 forest and land fire cases, naming 49 suspects, with burnt areas spanning 2,958.04 hectares as of Monday (7/9/2026). Pelalawan, Indragiri Hilir and Bengkalis recorded the highest number of cases, while police have urged the public not to clear land by burning, particularly in peat areas.

BB TNBTS suspends shooting permits in Bromo and surrounding areas

The Bromo Tengger Semeru National Park Authority has temporarily suspended all commercial and non-commercial filming permits to reduce the risk of forest fires during the dry season. Tourist activities at Mount Bromo and Ranu Regulo continue as normal, while Semeru climbs remain closed due to earlier fires. Violations of the new rule will be dealt with firmly under applicable law.

Mount Sinabung Activity Decreases, 650 Evacuees Return Home

Volcanic activity at Mount Sinabung in Karo Regency, North Sumatra, has declined following its late-August 2026 eruption, allowing some 650 evacuees to return home. Authorities reduced the recommended danger radius from 6 to 5 kilometres, permitting residents of Kuta Tengah village to return, though the alert status remains at Level III (Siaga).

Najmul Ensures PDAM Supplies 70 Cubic Metres of Water Daily to Resolve Crisis in Gili Trawangan

The Regent of North Lombok, Najmul Akhyar, has confirmed that the PDAM Amerta Dayan Gunung will supply up to 70 cubic metres of clean water per day to some 600 households in Gili Trawangan after PT Tiara Cipta Nirwana halted its supply. The local government has also issued a discretionary measure allowing PT TCN to resume water distribution whilst completing central government permits, and is pushing to unify the three Gili islands into a single district.

Water tanker truck ruse in Semarang carried Rp2.3 billion of illegal cigarettes

Semarang Customs foiled the shipment of illegal cigarettes worth Rp2.3 billion concealed inside a water tanker truck on a toll road. The operation, the second such case in 2026, saved the state an estimated Rp1.5 billion in potential losses, and two crew members have been named suspects.

Samsung optimistic Galaxy S26 FE will sell despite price increase

Samsung is confident its Galaxy S26 FE will perform well in Indonesia despite a near-Rp2 million price rise over its predecessor, driven by global chip cost increases. The company points to strong upgrade demand from Galaxy A series users, promotional schemes, and bundled AI features including six months of Google AI Pro. Pre-orders run until 10 September 2026 ahead of first sales on 11 September.

Govt Waives Overstay Fees for Foreigners Affected by Anak Krakatau Eruption

Indonesia's Immigration Directorate General has issued temporary Emergency Stay Permits (ITKT) and waived overstay fees for foreign nationals stranded by flight disruptions following the Anak Krakatau eruption on 6 September. A total of 528 flights were cancelled or diverted between 5 and 7 September, affecting 86,760 passengers, with dozens of permit applications already processed at immigration offices across the country. The permits, valid for up to 30 days and extendable, reflect a humanitarian approach that authorities say could be replicated in other force majeure situations.

Electric Cars Are Old News — This Chinese Automaker Is Now Building Humanoid Robots

China's automotive industry is expanding beyond electric vehicles into AI-driven robotics, with Chery Group's Aimoga Robotics developing humanoid robots for industrial and public service use. Its products have reached over 60 countries with more than 2,000 units sold globally, and its Mornine humanoid recently became the first in the world to obtain three EU safety and cybersecurity certifications.

PTBA books Rp22.03 trillion revenue, supported by stronger exports

PT Bukit Asam (PTBA) recorded revenues of Rp22.03 trillion in the first half of 2026, up 8 per cent year-on-year, driven by stronger export sales and higher average coal prices. Net profit surged 218 per cent to Rp2.65 trillion, and the company remains optimistic of reaching its near-50 million tonne production and sales target by the end of 2026.

KPK Reveals 5 Per Cent Fee on DJKA Projects, KAPM Said to Have Paid Rp1.36 Billion

Corruption Eradication Commission (KPK) prosecutors have revealed that a commitment fee of 5 per cent of the contract value was demanded from companies winning railway projects at the Transport Ministry's Directorate General of Railways (DJKA). State-owned PT Kereta Api Properti Manajemen (KAPM) allegedly paid Rp1.36 billion in bribes to five civil servants to secure a Rp20.75 billion level-crossing repair contract in 2022, yielding the company an estimated Rp2.41 billion gain in assets.

Lawyers for Former Customs Intelligence Chief Deny He Received Money from Blueray Boss

The defence team for Budiman Bayu Prasojo, former Customs Intelligence Section Head at the Directorate General of Customs and Excise, has denied that he received payments from Blueray Cargo Group owner John Field. The lawyers argue that witness testimony in the KPK trial pointed instead to Orlando Hamonangan, and that operational fund use required approval from superiors Rizal and Sisprian, not Budiman. Budiman is charged alongside Rizal and Sisprian with jointly accepting some Rp5.27 billion from Blueray Cargo and cigarette businessmen.

Customs Cracks Down on 20,643 Cases, Seized Goods Reach Rp11.25 Trillion

The Directorate General of Customs and Excise handled 20,643 enforcement cases up to August 2026, with seized goods valued at Rp11.25 trillion, largely driven by illegal cigarettes. The agency also tightened oversight of exports, imports and narcotics, seizing 11.43 tonnes of narcotics evidence.

Free meals halted at schools in West Java amid volcanic ash risks

Indonesia's free nutritious meal (MBG) programme has been temporarily suspended in several West Java regions, including Bogor, Depok and Sukabumi, as schools shift to remote learning following volcanic eruptions. BGN official Khairul Hidayati stressed the halt is adaptive and that distribution will resume once conditions and in-person learning allow. Mount Anak Krakatau's activity has also prompted school closures in Lampung, Banten and Jakarta.

Eruption of Anak Krakatau Eases, Residents Urged to Remain Vigilant

The Anak Krakatau Emergency Response Team reports that the volcano's major eruption occurred on 6 September 2026, with ash emissions continuing though at a diminished intensity. M Nugraha Kartadinata urged residents to stay calm and vigilant, wear masks due to fine volcanic ash, and avoid a three-kilometre exclusion zone around the volcano.

Prosecutors: Ex-Transport Ministry Official Demanded 5 Per Cent Fee from Winning Railway Directorate Project Bidder

Anti-corruption prosecutors allege that Harno Trimadi, a former director at the Transport Ministry's Directorate General of Railways, demanded a five per cent commitment fee from the company awarded a Rp20.75 billion rail crossing project in 2022. PT Kereta Api Properti Manajeman, a subsidiary of PT KAI, is accused of paying Rp1.36 billion in bribes to five civil servants to secure the contract. The case was heard at the Jakarta Central District Court's corruption tribunal.

'Be Quiet!' Viral Video Over Jobs Question: Koster Gives His Explanation

Bali Governor Wayan Koster has clarified a viral clip showing him telling a resident 'be quiet!' when asked about job opportunities. He said the footage, from a July 2025 demolition of illegal buildings at Bingin Beach, was taken out of context and that his remarks concerned the demolition rather than employment. Koster dismissed concerns about the video, joking that going viral only made him look better.

House Budget Body and Government Agree on Changes to 2027 Draft State Budget

The Budget Committee (Banggar) of the Indonesian House of Representatives and the government have agreed to revise the 2027 draft state budget, raising both state revenue and expenditure targets by around Rp9.1 trillion from the initial draft in the Financial Memorandum. Revenue is now set at Rp3,435.1 trillion, driven by higher tax receipts and non-tax state revenue, while spending rises to Rp4,106.3 trillion, mainly through increased ministry and agency allocations. The deficit target remains unchanged at 2.40 per cent of gross domestic product.

President Prabowo Leads Limited Meeting on Natural Disaster Response

President Prabowo Subianto chaired a limited meeting, held in hybrid form from the Merdeka Palace, to monitor and evaluate responses to disasters including the Flores earthquake, Mount Anak Krakatau's activity, and forest and land fires. He ordered a significant increase in disaster mitigation budgets and directed officials to plan for additional equipment such as helicopters, water pumps and weather-modification aircraft. The Ministry of Social Affairs reported extensive readiness measures, including over 21,000 Tagana personnel and a tiered warehouse network to speed up aid delivery.

Indonesians' Online Loans Reach Rp105.6 Trillion, Non-Performing Credit Rises to 4.32%

Indonesia's online lending (Pindar) industry recorded outstanding financing of Rp105.63 trillion in July 2026, growing 24.76% year-on-year, according to the Financial Services Authority (OJK). However, this rapid expansion has been accompanied by a rising 90-day default rate of 4.32%, keeping credit risk above the 4% threshold.

Affirming the State's Presence in the Holy Land

Indonesia's Hajj pilgrimage management has reached a milestone, with the Central Statistics Agency (BPS) reporting a Hajj Service Satisfaction Index of 83.28 per cent, placing this year's services in the 'Very Satisfactory' category. The author credits structural reforms, uncompromising discipline towards vendors in Saudi Arabia, and the strategic role of the Ministry of Hajj and Umrah for the improvement.

Asset Forfeiture Bill Must Firmly Pursue Criminal Proceeds Whilst Protecting Citizens' Rights

Deliberations on Indonesia's Asset Forfeiture Bill face the challenge of strengthening the state's authority to seize criminal proceeds without opening the door to confiscation of lawfully acquired assets. Peradi Profesional told a parliamentary hearing that safeguards such as judicial oversight, clear evidentiary standards and protection for bona fide third parties must be guaranteed in law. The group warned against a 'seize first, prove later' approach and potential misuse of the law against political opponents or legitimate businesses.

Constitutional Court rules petition for teacher involvement in free nutritious meals programme inadmissible

The Constitutional Court has declared inadmissible two petitions: one seeking to require teacher involvement as supervisors in the government's free nutritious meals (MBG) programme, and another challenging corporate liability provisions in the new Criminal Procedure Code. Chief Justice Suhartoyo announced the rulings on Monday at the court's main chamber in Jakarta. The court found the petitions failed to clearly set out the constitutional conflict between the challenged norms and the grounds for review.

KPPOD Criticises Purbaya's Stance on Jakarta Provincial Bonds, Says Central Government Inconsistent

KPPOD has criticised Finance Minister Purbaya Yudhi Sadewa for questioning Jakarta's plan to issue municipal bonds, calling the central government inconsistent with its own policy of encouraging creative regional financing. KPPOD Executive Director Arman Suparman argued that regional bonds are legally grounded in Law No. 1 of 2022 and that the central government should act as a facilitator rather than an obstacle. He urged the government to use clear, accountable parameters rather than citing Jakarta's fiscal capacity as a reason to doubt the plan.

Indonesian Red Cross opens family reunification service, helping 2,814 earthquake survivors in East Nusa Tenggara

The Indonesian Red Cross (PMI) has activated its Restoring Family Links (RFL) service following the magnitude-7.7 earthquake that struck the Flores region on 15 August 2026, with 2,814 people across six regencies already using it. Of these, 1,454 registered as safe via forms and 1,355 used free phone calls, whilst five people have been reunited with their families.

Directorate General of Taxes' 2027 Budget Ceiling Reaches Rp 6.27 Trillion — Here's the Breakdown

Indonesia's Directorate General of Taxes (DJP) has proposed a 2027 budget ceiling of Rp 6.27 trillion during a working meeting with the House of Representatives' Commission XI. The budget is divided between state revenue management of Rp 1.204 trillion and management support of Rp 5.066 trillion. Key future programmes include AI infrastructure development, cross-border financial and crypto asset information exchange, and tax arrears collection.

Attorney General's Office names PT TPL a corporate suspect in transfer pricing case

The Attorney General's Special Crimes Unit (Jampidsus) has named PT Toba Pulp Lestari (TPL) Tbk a corporate suspect in an alleged corruption case involving transfer pricing and under-invoicing between 2008 and 2025. Investigators estimate state losses of around Rp2 trillion, and two tax examiners have already been named suspects in the case.

58 Pension Funds Closed in Six Years, Here's the Culprit

Indonesia's Financial Services Authority (OJK) has recorded the dissolution of 58 pension funds since 2020, most of them employer-sponsored funds offering defined benefit schemes. OJK cites efficiency considerations, declining participant numbers and inadequate economies of scale, alongside a global shift from defined benefit to defined contribution schemes. Total pension fund assets reached Rp 1,699.99 trillion as of July 2026, growing 6.70% year on year.