Indonesian Political, Business & Finance News

Archive: 8 September 2026

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Reflections on International Literacy Day, 8 September

On International Literacy Day, this opinion piece questions the government's seriousness about literacy, noting that President Prabowo's instructions to teach French and Portuguese in schools sit uneasily alongside Indonesia's poor reading scores and a halved National Library budget. The author argues that mother-tongue-based learning and basic reading access, particularly in remote 3T regions, must come before foreign-language ambitions. PISA 2022 data shows Indonesian students' reading ability has fallen to 359 points, well below the OECD average.

North Korea Condemns Japan-US-South Korea Drill, Threatens Retaliation

North Korean Defence Minister Kim Song Gi has condemned the trilateral Freedom Edge military exercise involving Japan, the United States and South Korea, calling it a crucial security threat and vowing firm countermeasures. The five-day drill, focused on cyber defence and real-time data sharing, comes despite recent efforts by Washington to reduce tensions with Pyongyang. The statement also criticised the recent Orient Shield exercise involving the US, Japan and Australia as a series of uninterrupted war shows.

Tied to a Post: Suspected Thief in Asahan, North Sumatra, Beaten to Death by Mob

A 27-year-old man identified as MKH died after being beaten by a mob in Air Teluk Kiri village, Asahan, North Sumatra, following his capture during a house burglary. Police say residents, frustrated by a spate of thefts, took the law into their own hands. The incident, which went viral on social media, is under investigation by the Asahan police.

Often Confiding in AI? Here Are the Risks Rarely Realised

A study published in Nature Computational Science highlights privacy risks when users share sensitive personal data with AI chatbots for emotional support. Research testing 29 mental health chatbots found none met adequate response criteria in suicide-risk scenarios. Experts advise users to anonymise identities, avoid sharing sensitive data, and not treat chatbots as a substitute for professional help.

China's Gold Buying Spree Reaches 21 Consecutive Months, Reserves Hit 2,366 Tonnes

Central banks worldwide continued to accumulate gold, with net purchases of 23 tonnes in July 2026, led by China and Poland, according to World Gold Council data. China's People's Bank has now bought gold for 21 consecutive months, pushing its official reserves to roughly 2,366 tonnes, whilst Poland has become the year's largest central bank buyer with 90 tonnes purchased since January.

Undip Student Designs AI System to Detect Worker Fatigue

Tiaman Gea, a student of Diponegoro University's mechanical design engineering programme, has created WellGuard, an AI-based system that monitors the physical and psychological condition of high-risk workers in the energy sector. The design, which combines wearable biometrics, multimodal AI and natural language processing, took third place in the HSSE Innovation Challenge 2026.

Retired Warship KRI Ki Hajar Dewantara Set for Sale After DPR Approval

Indonesia's House of Representatives has approved the sale of the retired warship KRI Ki Hajar Dewantara-364, a Yugoslav-built vessel decommissioned in 2019. The proposal originated from President Prabowo Subianto, with the Defence Ministry stating that repairing the ageing ship was no longer economically viable, though the government believes it retains economic value. An earlier plan to sink the vessel off Bali as a marine tourism attraction was scrapped due to budgetary concerns.

Detention Cell Block at Jembrana Prosecutor's Office Catches Fire, Documents and Three TVs Destroyed

A fire broke out in the detention cell block for women and children at the Negara District Prosecutor's Office in Jembrana Regency on Tuesday morning (8/9/2026), destroying documents and three LED televisions. Firefighters from the Jembrana Civil Service Police Unit extinguished the blaze within 30 minutes, and no casualties were reported. The exact cause and material losses remain under police investigation.

Black Waste Pollution in River Goes Viral, Cemagi TPS3R Reprimanded by DLHK Enforcement Officers

A viral video showing black liquid waste entering the Tukad Penet river and thick smoke billowing from the Sarwa Metu Wangi TPS3R facility in Cemagi, Badung, has prompted an inspection by the Badung Environment and Hygiene Enforcement Agency (Gakkum DLHK). The facility's operational manager claimed the smoke resulted from suboptimal incinerator temperatures, whilst the black runoff came from routine floor cleaning. Authorities issued a written reprimand and recommended the operator build a proper liquid waste treatment system.

Galuga Bogor Landfill Fire Still Burning After 21 Hours, Flames Hard to Reach

A fire at the Galuga final waste disposal site in Bogor Regency has burned for 21 hours and has yet to be fully extinguished, with the blaze thought to have originated from farmland adjacent to the site. More than 100 personnel have been deployed, including police water cannons and TNI Air Force helicopter water bombing, whilst the local government has temporarily closed the site to expedite firefighting operations.

Anak Krakatau Erupts: Carita Hotelier Reveals the Powerful Impact

The eruption of Mount Anak Krakatau has begun to affect tourism in Banten, with visitor numbers to Carita Beach falling sharply. Erwin Surya Winata, manager of Hotel Lippo Carita, reported a nearly 30% decline as news of the eruption and volcanic ash spread, with some holidaymakers cancelling whilst day-trippers continued to arrive.

Chronology of KH Ahmad Fudholi's Death After Accident on Merak Toll Road

KH Ahmad Fudholi, a prominent cleric and head of the Al-Hijaiyyah Islamic boarding school in Tangerang Regency, died after the vehicle he was travelling in struck a parked lorry on the Tangerang-Merak toll road. The accident occurred at around 03.00 WIB at kilometre 63+800 B, and police are still investigating the exact cause.

A New Challenge for the Music Industry: From Struggling to Find Songs, to Being Confused by Choice

The abundance of digital music has shifted the listener's problem from finding songs to finding music that feels personal and meaningful. Spotify's Head of Editorial for Southeast Asia, Boon Ken Wong, says human curation has become more important than ever in guiding listeners through the sea of options. Editorial playlists and storytelling features such as the Editorial Watch Feed are being used to connect emerging musicians with wider audiences.

Beware of Dust and Volcanic Ash in the Dry Season: Here Is How to Protect Yourself

A senior figure from the Indonesian Society of Internal Medicine Specialists (PAPDI) has warned the public of heightened health risks from volcanic ash and dust during the dry season, as dry weather allows harmful particles to linger in the air. The advisory follows near-simultaneous eruptions at several Indonesian volcanoes, including Anak Krakatau, Semeru and Sinabung.

Indonesia's Disaster Resilience Is Key to Economic Competitiveness: Kadin Institute

The Kadin Indonesia Institute has urged Indonesia to treat disaster preparedness as an economic competitiveness issue, following the Anak Krakatau eruption that disrupted nearly 3,000 flights and affected some 341,000 passengers, alongside ongoing forest and land fires. Fakhrul Fulvian, the institute's director of insight, called for a National Business Continuity Framework mapping critical economic nodes and alternative routes, involving central and regional governments, infrastructure operators and businesses. He also argued that disaster mitigation spending should be seen as an economic buffer, noting that resilience itself can enhance Indonesia's appeal to investors.

Report: Prince MBZ Told Netanyahu About Hamas Military Operation on 10 October, But He Did Not Act

A new book claims UAE leader Mohammed Bin Zayed personally warned Benjamin Netanyahu about a major Hamas attack roughly ten days before 7 October 2023. According to the report in Haaretz, Netanyahu did not pass the information to Israeli security officials and took no action. The book, based on interviews with dozens of sources, says MBZ's knowledge came from Hamas leader Yahya Sinwar.

Anak Krakatau eruption disrupted 2,961 flights and affected 341,000 passengers

The eruption of Anak Krakatau in early September forced eight Indonesian airports, including Soekarno-Hatta and Halim Perdanakusuma, to suspend operations, disrupting 2,961 domestic and international flights and affecting some 341,000 passengers. Volcanic ash, which can damage jet engines and reduce visibility, spread across Banten, Jakarta, West Java and parts of Sumatra, prompting closures until tests confirmed airspace and runways were clear. The Indonesia National Air Carriers Association estimated potential airline losses of up to Rp19 billion per day, with knock-on effects including sold-out rail tickets and higher airfares.

ARI cases surge in Bandarlampung amid Anak Krakatau eruption

Bandarlampung's health office has recorded a sharp rise in acute respiratory infection (ARI) cases, from 527 on 4 September to 716 on 7 September 2026, coinciding with the eruption of Mount Anak Krakatau. Authorities have stopped short of definitively linking volcanic ash to the increase, but are strengthening surveillance across the worst-affected districts. Related conditions such as pneumonia, asthma, COPD, eye irritation and dermatitis remain stable.

Ombudsman: Follow-up to oversight must have an impact on service quality

The Ombudsman of the Republic of Indonesia has told Parliament's Commission II that follow-up to its oversight findings must produce tangible improvements in public service quality, not merely formal commitments. Deputy Chair Rahmadi Indra Tektona cited data interoperability, stronger regional representation and inter-agency collaboration as key challenges. The institution had resolved 6,456 public reports, or 82.5 per cent of its annual target, by August.

Qlola by BRI Launches a New Experience in Digital Business Services

Bank Rakyat Indonesia (BRI) has unveiled a new experience for Qlola by BRI, its integrated corporate financial platform, following 51% year-on-year transaction growth in the first half of 2026. The enhanced platform offers real-time receivables monitoring, bulk payments including payroll, foreign exchange capabilities for exporters, and integration with Indonesia's tax ecosystem. BRI has also advised customers to beware of unofficial sources during the transition, with all data automatically migrated.

KPK Responds to Silmy Karim's Pre-trial Motion Over Evidence Seizure

The Corruption Eradication Commission (KPK) has responded to a pre-trial motion filed by former Deputy Minister of Immigration and Corrections Silmy Karim challenging the legality of evidence seizures in his extortion and gratification case. The KPK insists all investigative steps complied with procedural law and says it is prepared to explain its actions objectively in court. Silmy and seven other immigration officials have been named suspects, with assets worth around Rp150 billion seized.

New INKA CLI-225 Commuter Trains Pulled Into Workshops and Suspended From Service

Seven new CLI-225 (iE305 series) electric commuter trains built by state-owned PT INKA have been temporarily withdrawn from service for a general inspection carried out jointly with KAI Commuter from 7 to 30 September 2026. The trains, produced at INKA's Madiun factory in collaboration with Japan's J-TREC and Toyo Denki, had previously passed dynamic testing prior to entering passenger service.

2,836 Households in Kebon Kosong, Central Jakarta, Receive 30 kg Rice Aid

Some 2,836 beneficiary households in Kebon Kosong Sub-district, Kemayoran, Central Jakarta, have received 30 kilogrammes of rice in the second phase of the 2026 food aid programme. Distribution is being staggered by neighbourhood unit to avoid crowding and is expected to finish within three to four days. Recipients welcomed the aid, with some hoping future distributions will include other staple goods.

Pertamina Safeguards Energy Supply in Eastern Indonesia

PT Pertamina (Persero) has been reviewing its energy infrastructure in North Maluku to ensure adequate fuel and aviation fuel supplies across Indonesia's eastern islands. Risk Management Director Ahmad Siddik Badruddin inspected the Baabullah Aviation Fuel Terminal and Ternate Fuel Terminal, evaluating capacity for growing demand and possible jetty improvements. Officials stressed that energy resilience in Papua and Maluku cannot be judged on profit alone, given the region's dependence on sea transport and challenging geography.

Former Ministry of Religious Affairs Staff Admits Special Hajj Acceleration Fees Reached USD 5,000 Per Pilgrim

Ridwan, a former staff member at the Ministry of Religious Affairs under Yaqut Cholil Qoumas, told the Jakarta Corruption Court that he collected special Hajj acceleration fees of USD 5,000 per pilgrim in 2023, totalling USD 905,000 from 181 pilgrims. Prosecutors allege that USD 271,500 of these funds flowed to Yaqut, who is accused alongside three others of causing state losses of Rp 622 billion in the additional Hajj quota corruption case.

Bakom urges residents near Mount Anak Krakatau to remain vigilant

Indonesia's Government Communication Agency (Bakom) has urged communities around Mount Anak Krakatau to stay vigilant even though the 25-hour continuous eruption phase has ended. Senior expert Muhamad Hidayat said activity on Sebesi Island in South Lampung remains normal, but warned residents against unverified information circulating on social media.

Prabowo Proposes Merging Geological Agency into BMKG, Puan Weighs In

President Prabowo Subianto has floated the idea of integrating the Geological Agency of the Ministry of Energy and Mineral Resources into the Meteorology, Climatology and Geophysics Agency (BMKG). House of Representatives Speaker Puan Maharani welcomed the proposal cautiously, saying a thorough study of institutional tasks and budgets must precede any merger.

Video: Indonesian Online Loans Continue to Rise, Reaching Rp 105 Trillion

Indonesia's Financial Services Authority (OJK) recorded that total outstanding loans from peer-to-peer lending, or online lending, reached Rp 105.63 trillion as of July 2026. According to Agusman, OJK's Chief Executive for Supervision of Financing Institutions, Venture Capital, Microfinance Institutions and Other Financial Services Institutions, the figure represents a 24.76% increase year on year.

Nasdem Legislator Listed as Decile 4 Social Aid Recipient, DPR Leadership to Seek Clarification

Deputy Speaker of the DPR RI Cucun Ahmad Syamsurijal has said the House will summon Nasdem faction member Eva Stevany Rataba for clarification after her name appeared as a recipient of the Family Hope Programme (PKH) in North Toraja, South Sulawesi. Her entry in decile 4 of the National Socio-Economic Single Data (DTSEN) has drawn scrutiny given her reported wealth of some Rp16.17 billion in her LHKPN filing. Deciles 1 to 4 are the priority groups for government social assistance distribution.

Failure of Pelacarsen Cholesterol Drug Clinical Trial Shakes Pharmaceutical Industry

Novartis has suffered a major clinical setback after its closely watched cardiovascular trial of pelacarsen, developed with Ionis Pharmaceuticals, failed to significantly improve cardiovascular outcomes despite lowering dangerous Lp(a) cholesterol. The failure raises doubts about a multibillion-dollar drug class and pressures rivals Amgen and Eli Lilly, whose own Lp(a)-lowering treatments are still in development. Novartis shares fell 3 per cent amid an already steep patent cliff for the company.

China Southern Power Grid: Supporting Asia-Pacific Growth Through Energy Cooperation

China Southern Power Grid (CSG) has reaffirmed its commitment to supporting Asia-Pacific growth through regional energy connectivity, outlining its achievements in the Greater Bay Area at the Asia-Pacific Media Forum in Shenzhen. The company highlighted cross-border power projects with Vietnam, Laos and Myanmar, with clean energy accounting for more than 90 per cent of its international cooperation output. CSG also pledged to deepen energy partnerships across the region, leveraging complementary energy resources among Asia-Pacific nations.

Riau Leads Indonesia's High-Integrity Forest Carbon Market

Riau has become the first Indonesian province to implement jurisdictional REDD+ aligned with the ART-TREES high-integrity international standard, under its GREEN for Riau Initiative supported by the UN-REDD Programme and UK funding. The province, which holds around 4.9 million hectares of peatland, is developing a provincial Forest Reference Emission Level, safeguards and benefit-sharing mechanisms to access results-based climate finance and carbon markets. Officials say the framework could serve as a reference for other provinces while supporting Indonesia's FOLU Net Sink 2030 ambition.

Task force strengthens handling of Tahura to prevent Jambi land fires spreading

The Jambi Forest and Land Fire Task Force is reinforcing operations in the Sultan Thaha Saifuddin Grand Forest Park (Tahura), where fires have already burnt 360 hectares. Governor Al Haris said the area's vast size and widespread community farming make firefighting difficult, prompting an increase in personnel from 5,900 to 7,000 and plans for weather modification operations from 10 September.

1,730 Disasters Hit Indonesia from January to September, 115,000 Houses and Public Facilities Damaged

Indonesia's National Disaster Management Agency (BNPB) recorded 1,730 natural disasters up to 7 September, with hydrometeorological events such as forest fires and floods dominating. The disasters damaged more than 111,000 houses and thousands of public facilities, including schools and health centres. BNPB's total 2026 budget stands at Rp 1.082 trillion, including funds for rehabilitation and reconstruction.

OJK Records Pension Fund Investment in SRBI Up 132.76 Per Cent as of July โ€“ BCA Sekuritas

Indonesia's Financial Services Authority (OJK) reported that pension fund investment in Bank Indonesia Rupiah Securities (SRBI) surged 132.76 per cent year on year to Rp18.52 trillion as of July 2026. OJK executive Ogi Prastomiyono said the instrument's yield and risk profile suits pension fund management needs, whilst pension fund ROI rose to 0.95 per cent in July from 0.02 per cent in June.

How AI Affects the Earth's Water Supply

Artificial intelligence does not make water disappear from the planet, but its data centres consume vast quantities of fresh water through direct cooling and indirect electricity generation. In 2023, global data centre water consumption was estimated at around 560 billion litres, with indirect use from power generation accounting for the larger share. The impact is felt most acutely in water-stressed regions where data centres are built, though more efficient cooling technologies and better siting can reduce the footprint.

Bogor Regent Reveals Origin of Fire That Triggered Galuga Landfill Blaze

Bogor Regent Rudy Susmanto said the fire at the Galuga landfill in Cibungbulang District originated from neighbouring farmland, not from active waste piles. Around five hectares have burned, with four hotspots still being extinguished, while residents and waste pickers have been asked to evacuate the area.

Southwest Papua and North Maluku table documents on three disputed islands

The governments of Southwest Papua and North Maluku have presented supporting data and documents on the administrative status of the disputed islands of Sain, Piyai and Kiyas at a meeting facilitated by the Ministry of Home Affairs in Jakarta. Southwest Papua maintains the islands historically fall under Raja Ampat Regency, and its deputy governor has urged the ministry to assess all documents objectively to avoid conflict.

In Malaysia, Riau Police Chief Speaks on Forest and Land Fires and Mutual Assistance in Handling Them

Riau Police Chief Inspector General Herry Heryawan briefed Malaysian police in Johor Bahru on Indonesia's forest and land fire (karhutla) handling, highlighting the deployment of over 3,000 personnel and preventive measures across Riau. He reported 17,525.80 hectares burned from January to August 2026, with 45 cases and 49 suspects being prosecuted, and introduced the Green Policing initiative that has saved 3,423.54 hectares from environmental crime.

More Than Just a Sunset: Enjoy a Special Experience in Bali and Win Rewards Worth Up to Rp750 Million

Discovery Kartika Plaza Hotel Bali, Discovery Mall Bali and #KUTAKITA Sundown Yard are launching an Instant Rewards customer appreciation programme from September 2026, offering prizes with a total value of up to Rp750 million. Customers can win cash, shopping and savings vouchers, staycation packages, return flights and exclusive merchandise simply by transacting at participating outlets.

HNW Invites the Extended Gontor Pesantren Family to Continue the Struggle for Education

Deputy Speaker of the MPR Hidayat Nur Wahid has urged Pondok Modern Darussalam Gontor to treat its centenary not as an endpoint but as momentum for its second century of educational struggle. Speaking at a 'Night of Civilisation' event ahead of the pesantren's 100th anniversary, he linked values-based religious education to the Golden Indonesia 2045 vision and highlighted the constitutional and legislative frameworks protecting pesantren education. He also noted the consistent presence of Gontor alumni in the MPR leadership throughout Indonesian history.

94% of Petrol Stations in Indonesia Now Distributing New B50 Biodiesel Fuel

The Directorate General of New Renewable Energy and Energy Conservation reports that 94% of petrol stations across Indonesia are now distributing B50 biodiesel as of September 2026. Distribution has reached 10.69 million kilolitres out of this year's target of around 16.8 million kilolitres. The remaining 28 handover terminals are still transitioning from B40 to B50.

Aimoga Breaks Into Global Market with 2,000+ Units Delivered to More Than 60 Countries

AiMOGA Robotics has recorded cumulative shipments of more than 2,000 units to international markets, reaching over 60 countries and regions, including Indonesia. The company, backed by Chery's global infrastructure, says its robots are now deployed in more than 100 real-world scenarios, from automotive retail to public services.

Karoline Leavitt Reveals Reason for Stepping Down as Donald Trump's Press Secretary

Karoline Leavitt, 29, has explained her deeply personal reasons for resigning as Donald Trump's press secretary, saying she wants to prioritise her young family. In an Instagram post she shared a rare photo with her daughter Viviana, writing that no achievement outweighs being a mother. Trump said he understood and respected her decision, announced on 12 August.

Bali airport resumes routes previously affected by Mount Anak Krakatau eruption

Bali's I Gusti Ngurah Rai Airport has resumed normal operations on domestic routes to Tangerang, Jakarta and Bandung following closures caused by the eruption of Mount Anak Krakatau. At least 108 flights carrying some 13,000 prospective passengers were cancelled over two days, but the majority of the eight airlines serving the routes have now returned to schedule.

A glimmer of hope after the devastation of the Flores earthquake

Three weeks after a powerful 7.7-magnitude earthquake struck Flores on 15 August, the farming village of Cunca Lolos in West Manggarai, East Nusa Tenggara, is slowly emerging from grief and uncertainty. Most homes have been badly damaged or rendered unsafe, leaving residents in emergency tents. Optimism is being instilled among all parties as recovery begins despite the difficult conditions on the ground.

One Year in Office, Minister of Migrant Worker Protection Strengthens Protection and Boosts Quality of Indonesian Migrant Workers

Mukhtarudin, appointed Minister for the Protection of Indonesian Migrant Workers (P2MI) by President Prabowo Subianto, has spent his first year building an integrated protection ecosystem spanning recruitment, placement, and post-employment reintegration. His ministry is also shifting the sector away from low-skilled domestic work towards mid-to-high skilled labour through vocational training and international certification, alongside closer coordination with the police to combat human trafficking.

Bogor Station Modernisation: Gojek and KAI Strengthen Pick-up Point Arrangements

Gojek and PT Kereta Api Indonesia (Persero) have signed a memorandum of understanding to modernise and reorganise the Bogor Station area, integrating multi-modal mobility services. The partnership builds on their collaboration since 2022, introducing GoRide and GoCar Instant pick-up points across 37 stations, including Bogor, which serves some 130,000 passengers daily. The initiative also explores wider integration, including GoPay digital payments within the KAI Group ecosystem and a potential urban LRT concept for Bogor.

UN Issues Warning: Humanity's Fate Hangs in the Balance

UN Human Rights Chief Volker Turk has warned that advanced artificial intelligence could pose an existential risk to humanity, echoing concerns raised by industry figures. He called for strong safeguards on AI safety and security before it is too late, particularly regarding critical infrastructure and democratic institutions.

PPP Ministry oversees handling of baby sale case to Singapore

The Ministry of Women's Empowerment and Child Protection is overseeing the handling of an alleged baby trafficking case involving infants from West Java sold to Singapore through illegal adoption. Nineteen perpetrators have been prosecuted and sentenced, while authorities continue tracing other children potentially linked to the trafficking network. The ministry stressed that the child victims' rights and protection remain the priority beyond the legal process.