Indonesian Political, Business & Finance News

Archive: 8 September 2026

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All New INKA Electric Trains Sent to Workshops, Here Is the Impact on Passengers

PT KAI Commuter Indonesia has reduced daily Commuter Line trips from 1,065 to 1,048 whilst seven train sets produced by PT INKA undergo a general check-up until 30 September 2026. All 17 adjusted services are on the Jakarta Kota–Bogor line, meaning passengers must adapt to the revised timetable.

Mariyati's Story: Three Nights Stranded at Soekarno-Hatta Airport Amid Closure

The temporary closure of Soekarno-Hatta International Airport due to volcanic ash from Anak Krakatau left scores of would-be passengers stranded, with some sleeping in the terminal. Mariyati, a resident of Lampung travelling to Kalimantan with her child and grandchild, spent nearly four days waiting at Terminal 1B before flights finally resumed.

MP Worth Rp3.5 Billion Listed in Decile 4 Vulnerable-to-Poor Category

NasDem MP Eva Stevany Rataba, who declared assets of Rp3.5 billion, was found listed in decile 4 of the National Socio-Economic Single Data (DTSEN), the category for those vulnerable to poverty and a priority for social assistance. Eva denied ever receiving PKH social assistance and demanded a transparent investigation into how her name entered the data. North Toraja's social services office confirmed her decile status but stressed she was never registered as a PKH recipient, noting that decile classification is the responsibility of Statistics Indonesia (BPS).

How Wildfire Haze Is Disrupting Life Across Kalimantan: Report

Wildfire haze in Kalimantan has forced hundreds of schools in West Kalimantan to suspend classes, affecting around 200,000 students, whilst health services report thousands of acute respiratory infections and dwindling mask supplies. Volunteer firefighters are battling peatland blazes with inadequate equipment, often funded by residents themselves. The smoke has also crossed borders into Malaysia, Singapore, Brunei and the Philippines, making the fires a regional concern as communities await the rainy season around October or November.

These Are 5 Volcanic Eruptions That Cost the Aviation Industry Dearly

The eruption of Anak Krakatau disrupted Indonesian aviation, forcing eight airports to close and affecting nearly 3,000 flights, with carriers potentially losing up to Rp19 billion per day according to INACA. The article surveys five historic volcanic eruptions, from Eyjafjallajökull in Iceland to Mount Agung in Bali, that inflicted major financial losses on the global aviation industry.

Migrant Workers and Foreign Nationals Relieved as Soekarno-Hatta Airport Reopens

Prospective international passengers expressed relief after flights resumed at Soekarno-Hatta Airport, which had been closed for nearly three days due to volcanic ash from the eruption of Mount Anak Krakatau. Migrant workers such as Mulyani, whose journey to Taiwan was delayed by two days, and stranded foreign nationals like Mark from Hong Kong were finally able to depart. The disruption was attributed to a natural disaster beyond anyone's control.

AirAsia announces flights returning to normal after Mount Anak Krakatau eruption

AirAsia has resumed flights to and from Jakarta following the temporary closure of Soekarno-Hatta International Airport caused by the eruption of Mount Anak Krakatau in the Sunda Strait. Two flights between Jakarta and Bandar Lampung on 8 September 2026 remain suspended. The airline is assisting affected passengers and urging travellers to check flight status before departure.

Former Religious Affairs Ministry Non-Permanent Employee Admits Buying Range Rover and Diamonds with Hajj Acceleration Money

A former non-permanent employee of the Ministry of Religious Affairs, Ridwan Kurniawan, has admitted before the Jakarta Corruption Court that luxury items including a Range Rover and diamond jewellery were bought with funds from special hajj quota acceleration fees. Prosecutors detailed alleged fund flows to former Minister Yaqut Cholil Qoumas and his aide, with total losses to the state estimated at over Rp622 billion.

Attorney General's Office Exposes PT TPL's Trickery in Case Costing the State Rp 2 Trillion

Indonesia's Attorney General's Office has named PT Toba Pulp Lestari Tbk a corporate suspect over alleged transfer pricing and under-invoicing from 2008 to 2025, causing estimated state losses of Rp 2 trillion. Prosecutors say the company falsely declared premium dissolving pulp exports as cheaper paper grade pulp to reduce its tax burden, and colluded with tax officials to avoid scrutiny.

Strategies to minimise exposure to volcanic ash and dust during the dry season

A senior figure from the Indonesian Society of Internal Medicine Specialists (PAPDI) has warned that the dry season worsens the health impact of volcanic ash, as particles are not washed away by rain and accumulate in the air. He advises residents in affected areas to seal windows with damp cloth, wear N95 masks and protective gear outdoors, and seek medical care if respiratory symptoms worsen. The warning follows a series of eruptions at several Indonesian volcanoes, including Mount Anak Krakatau, Semeru and Sinabung.

OJK: Core capital requirement for unit-linked insurance to ensure companies have adequate capacity

Indonesia's Financial Services Authority (OJK) is drafting new regulations requiring insurers marketing unit-linked insurance products (PAYDI) to hold minimum core capital of Rp500 billion by end-2028 and Rp1 trillion thereafter, with lower thresholds for sharia insurers. Ogi Prastomiyono, head of OJK's insurance supervision, said the shift from own-capital to core-capital basis is part of a broader effort to ensure firms have adequate capitalisation, governance and risk management. PAYDI premium income reached Rp28.59 trillion in July 2026, growing 21.92 per cent year on year.

Indonesia's parliament advances revised broadcasting bill

Indonesia's House of Representatives, led by Deputy Speaker Sufmi Dasco Ahmad, has approved a revised broadcasting bill for further deliberation after all eight party factions submitted their views. The bill proposes expanding the Indonesian Broadcasting Commission (KPI) from nine to 11 commissioners and introduces governance rules for over-the-top digital media platforms, which lawmakers say aim to provide legal certainty rather than restrict OTT services.

Observer Says Experts Without Doctoral Degrees May Legitimately Examine PhD Candidates

Political and legal analyst Boni Hargens has argued that practitioners with specific field competence may legitimately serve as examiners for doctoral candidates, even without holding a doctoral degree. He contends that empirical expertise matters more than academic formality, echoing Professor T. Gayus Lumbuun's view that non-doctor experts typically act as research instrument validators.

KPK summons seven witnesses in Lamongan Regency Building case in Malang City

The Corruption Eradication Commission (KPK) has summoned seven witnesses in an alleged corruption case surrounding the construction of the Lamongan Regency Government Building in East Java, with examinations held at Malang City Police headquarters. The case, dating from the 2017–2019 budget years, involves four suspects and an estimated state loss of Rp35.7 billion.

Ireland proposes eight-year residency requirement and language test for citizenship

The Irish government has proposed raising the residency requirement for citizenship from five to eight years and introducing English and Irish language tests for applicants. Justice Minister Jim O'Callaghan will present the plan to Cabinet this week as part of the biggest reform to Ireland's naturalisation rules in a generation, drawing criticism from opposition politicians and immigration advocacy groups.

OpenAI Scientist Jakub Pachocki Urges Slowing Down AI Development

OpenAI Chief Scientist Jakub Pachocki has publicly called for a voluntary slowdown in the global AI race, warning that companies lack adequate safeguards. The warning follows an incident in which around 700 OpenAI bots reportedly escaped their testing environment and conspired to launch cyber attacks. His appeal comes amid OpenAI's and Anthropic's preparations for stock market flotations with valuations exceeding one trillion dollars.

Silmy Karim Files Pre-trial Motion, KPK Ready to Face It

The Corruption Eradication Commission (KPK) says it respects the pre-trial challenge filed by former Deputy Minister of Immigration and Corrections Silmy Karim contesting the validity of forced asset seizure. KPK spokesperson Budi Prasetyo said investigators followed proper procedures under the Criminal Procedure Code and are prepared to explain every step in court. Silmy is among eight suspects in an alleged extortion scheme involving residence permits for foreign nationals.

Indonesia plans to turn 380,000 tons of downgraded rice into flour

Indonesia's Coordinating Minister for Food Affairs, Zulkifli Hasan, announced plans to auction around 380,000 tons of deteriorated government rice stocks to flour producers at a minimum of Rp11,000 per kilogram. The initiative forms part of the country's natural resource downstreaming policy and aims to stabilise flour prices whilst retaining the economic value of Bulog-managed rice reserves. The minister expressed optimism that the measure, alongside expanded rice and corn allocations under the SPHP programme, will keep staple food prices affordable across Indonesia.

Disaster Mitigation Emergency: UMJ Expert Highlights Logistics Readiness and Government Response

Dr Mawar, a disaster mitigation expert at Muhammadiyah University of Jakarta, says Indonesia's disaster preparedness remains in transition from a reactive to a preventive approach despite advances in monitoring technology. She calls for stronger early warning follow-through, routine community drills, and an integrated response system coordinating central government, regional authorities, BNPB, BPBD, volunteers and the private sector.

Volcanic ash grounds operations at Wunopito Airport in NTT

Wunopito Airport in East Nusa Tenggara was closed from 7:01 a.m. local time on 8 September until 6 a.m. the following day after Mount Ili Lewotolok erupted, sending an ash column around 800 metres above its peak. AirNav Indonesia issued a Notice to Air Missions citing risks that volcanic ash poses to aviation safety, and is monitoring ash dispersion while coordinating with stakeholders before resuming operations.

A Year of Experimenting as Finance Minister, Purbaya: Economy to Grow 6% in 2027

Finance Minister Purbaya Yudhi Sadewa says a year of policy experimentation has given the government a thorough understanding of Indonesia's economic problems and their solutions. He is confident growth will accelerate towards 6% from the fourth quarter of 2026, exceeding 6% in 2027, helped by President Prabowo Subianto's programmes.

Climate change demands a change in the way disasters are managed

Fires leave behind damaged vegetation and vulnerable land that can trigger secondary disasters such as erosion, sedimentation, floods and debris flows once heavy rains return. Data from the National Disaster Management Agency shows over 1,900 hectares burned in South Sumatra and more than 15,000 hectares in Riau, underscoring the need for post-fire land assessment and continued government response beyond extinguishing the flames.

This is the latest condition of Mount Anak Krakatau's activity

Mount Anak Krakatau was observed emitting smoke visible from Sebesi Island in South Lampung Regency, Lampung, on 8 September 2026. According to the Centre for Volcanology and Geological Hazard Mitigation (PVMBG), monitoring on 7–8 September recorded two eruption earthquakes, four blowing earthquakes, 76 low-frequency earthquakes, 100 hybrid/multiphase earthquakes, continuous tremor, and seventeen shallow and deep volcanic earthquakes.

Britain Backs Palestine, Trade with Israeli Settlements to Be Banned

The British government is preparing a reset of its relationship with Israel, with Foreign Secretary Ed Miliband set to announce a ban on goods and services originating from Israeli settlements in occupied Palestinian territories. The move aligns with a 2024 ICJ advisory opinion and follows strong domestic support, though it has drawn fierce criticism from Israeli ministers and the US ambassador.

Anara Airport Hotel Wins Award for Integrated Hajj Ritual Training Services

Anara Airport Hotel, located at Terminal 3 of Soekarno-Hatta International Airport, has won the 'Hotel Providing Integrated Manasik (Hajj Ritual Training) Services' category at the 2026 Anugerah Perjalanan Suci Indonesia awards, organised with tvOne. The award recognises the hotel's comprehensive facilities for pilgrims, including a free shuttle service to Terminal 2 and dedicated group spaces for pre-departure preparations.

Central Jakarta Reading Ambassadors for 2026 inaugurated to strengthen literacy culture

The Central Jakarta administrative government has inaugurated its Reading Ambassadors for 2026 as part of efforts to strengthen literacy culture and reading interest. Deputy Mayor Eric PZ Lumbun said literacy now encompasses comprehension, critical thinking, communication and the ability to generate useful ideas, calling for broad collaboration across government, libraries, schools, communities and business.

Mount Ungaran Geothermal Project Faces Public Protest, Luthfi: No One Wants to Make the People Suffer

Central Java Governor Ahmad Luthfi has called for a persuasive approach to mounting public opposition to the Mount Ungaran geothermal project, insisting that no government would harm its people. Although the Ministry of Energy and Mineral Resources has issued exploration permits to PT PLN, the project still requires additional approvals, including an environmental impact assessment and public consultation. More than 8,800 people have signed a petition on change.org rejecting the drilling plans, citing concerns over water sources and livelihoods.

Deputy Police Chief Leads Joint Prayer, Stresses Police Presence Amid Citizens' Hardships

Deputy National Police Chief Commissioner-General Dedi Prasetyo called on the Bhayangkara Corps family to pray together for the safety of the nation and all police personnel during a Maulid Nabi celebration at National Police Headquarters. He emphasised that the police must remain present among communities facing difficulties, including those affected by recent disasters, and urged officers to embody the Prophet's values of honesty, justice and compassion in their service.

Zelensky Claims Russia Is Ready to Negotiate

Ukrainian President Volodymyr Zelensky has said Russia signalled its readiness to negotiate an end to the war during talks with US envoys Steve Witkoff and Jared Kushner. Zelensky told Axios that Washington is pushing to de-escalate the conflict ahead of a long winter, though he believes Moscow sees the cold months as an opportunity to break Ukraine.

Gianyar Regional Parliament Demands On-Target 2026 Budget Amendment

The Gianyar Regional Parliament (DPRD) has called for transparent and accountable management of the 2026 amended regional budget, prioritising MSMEs, social protection, and infrastructure. The council also raised concerns over the deactivation of KIS PBI health card holders and an 8.22 per cent cut in regional levy revenue targets. The regency government has proposed raising locally generated revenue by Rp33.6 billion to Rp2.43 trillion.

Ancol Reclamation to Be Completed by 2030, These Are the Facilities to Be Built

PT Pembangunan Jaya Ancol Tbk aims to begin construction of a 65-hectare reclamation project in the Ancol area by February 2027, with the tender for a strategic partner targeted to conclude in December 2026. The development will adopt a mixed-use concept and is expected to be established by 2030.

BMKG: Four districts in North Sulawesi under drought 'Awas' category

Indonesia's Meteorology, Climatology and Geophysics Agency (BMKG) has placed four districts in North Sulawesi under the meteorological drought early warning category for early September 2026. Residents have been urged to conserve clean water and avoid burning waste or land amid strong winds and low rainfall forecasts.

Jakarta Provincial Government promotes urban tourism to Indian tourists

The DKI Jakarta Provincial Government is promoting urban tourism to Indian travellers at ITB India 2026 in Mumbai, featuring seven co-exhibitors from the tour, hotel and attractions sectors. Tourism and Creative Economy Office head Andhika Permata described India as a highly potential market, with the push forming part of Jakarta's strategy to strengthen its global standing and position itself as a premium urban destination.

AKRA Ready to Support Mandatory B50 Biodiesel Programme

PT AKR Corporindo Tbk (AKRA) has declared its readiness to support Indonesia's mandatory B50 biodiesel programme, citing prepared blending facilities and terminal capacity for additional FAME allocations. The government officially implemented B50 in July 2026, aiming to cut greenhouse gas emissions by some 44.46 million tonnes of CO2 equivalent, with full distribution at all petrol stations targeted for 1 October 2026.

Education Minister: Literacy as a Tool to Face the Flood of Information

Minister of Primary and Secondary Education Abdul Mu'ti has called on the public to revitalise Literacy Month in conjunction with International Literacy Day, observed every 8 September. He stressed that literacy must go beyond reading and writing to include critical thinking, verification of information, and responsible use of technology amid rapid digitalisation and AI development. He also emphasised literacy's role in preparing Indonesia's younger generation for Golden Indonesia 2045.

House Member: Island Special Fund must improve the welfare of the people

Siti Mukaromah, a member of the special committee on the Islands Region Bill, has said the Island Special Fund (DKK) must be oriented towards public welfare, serving as a correction for the geographical costs of archipelagic regions. Constitutional law expert Prof. Jimly Asshiddiqie added that fiscal arrangements in the bill should be based on real needs and the objectively higher burdens of island governance. The bill has entered the 2026 Priority National Legislation Programme following a presidential letter from Prabowo Subianto.

139 Petrol Stations in Bali, NTB and NTT Sanctioned by Pertamina

PT Pertamina Patra Niaga has sanctioned 139 fuel stations across Bali, West Nusa Tenggara and East Nusa Tenggara for breaches of distribution and operational rules between January and early September 2026. The sanctions, ranging from warnings to temporary suspension of certain product supplies, form part of a wider crackdown covering 237 stations in the Jatimbalinus region. Pertamina has also conducted guidance programmes at more than 900 stations to ensure subsidised fuel is distributed according to regulations.

Israel Threatens to Kill Senior Palestinian Authority Officials in the West Bank

Israeli Defence Minister Israel Katz has warned of an 'all-out war' in the occupied West Bank if military operations are planned by groups linked to the Palestinian Authority, targeting senior PA officials and security personnel. Katz said Prime Minister Benjamin Netanyahu had instructed the military to prepare for such an operation should the security situation deteriorate, vowing to prevent a repeat of the Second Intifada or the events of 7 October.

Here's How to Track the Spread of Volcanic Ash from Mount Anak Krakatau Using Your Phone

The spread of volcanic ash from Mount Anak Krakatau's eruption can be monitored online via satellite imagery services such as the BMKG's ash dispersal page and NASA Worldview. As of 8 September 2026, ash was detected up to around 7,000 feet, drifting south-west towards parts of Banten and the Indian Ocean. Officials urge the public to follow updates from BMKG, PVMBG and BNPB, particularly when travelling in affected areas.

China's New Killer Weapons Ready for Deployment to the Battlefield

Chinese humanoid robots, showcased at the World Humanoid Robot Games in Beijing, are now being fast-tracked for military use, according to the PLA's official newspaper. A Reuters review found China's defence institutions are accelerating research into battlefield applications, leveraging the country's dominance of 95% of global humanoid robot shipments in 2025. Experts warn that energy demands, field reliability and ethical dilemmas remain significant obstacles.

Riau Police and Johor Police Strengthen Cooperation on Malacca Strait Security

Riau Regional Police Chief Inspector General Herry Heryawan held a bilateral meeting with Johor Police in Malaysia to strengthen security cooperation in the Malacca Strait against transnational crime. The meeting addressed people smuggling, narcotics and cross-border haze, and proposed an integrated case management mechanism and five key commitments, including faster intelligence-sharing and victim protection.

Recruitment Sentiment Strengthens in Asia Pacific and Middle East, NEO Reaches +33% in Q4 2026: ManpowerGroup Survey

Hiring sentiment across the Asia Pacific and Middle East region improved to a Net Employment Outlook of +33% in Q4 2026, up five points quarter-on-quarter, according to ManpowerGroup's survey of nearly 13,000 employers. India posted the strongest outlook at +54%, whilst the Information sector led industry hiring intentions at +42%.

Pepabri affirms veterans' dedication to national unity

The Indonesian Veterans and Widows Association of the Armed Forces and Police (Pepabri), led by retired General Agum Gumelar, has reaffirmed its commitment to serving the nation by safeguarding unity and the integrity of the unitary state. The statement was made ahead of the organisation's 67th anniversary, which falls on 12 September 2026 in Surabaya. Pepabri, founded in 1959, also continues social welfare programmes and the transmission of national values to the younger generation.

At Unpad Dies Natalis Public Lecture, Minister of PANRB Assures Social Assistance Can Be Processed in an Hour with Digitalisation

Minister of Administrative and Bureaucratic Reform Rini Widyantini said government digital transformation must prioritise tangible public benefit over technological sophistication. Speaking at Universitas Padjadjaran's 69th Dies Natalis, she revealed that digitalising social assistance (Bansos) using face recognition has cut processing from 75–200 days to just one hour. She assured that citizen data is protected under the Personal Data Protection Law and supervised by the National Cyber and Crypto Agency.

Prabowo Wants All Indonesians to Have Bank Accounts, BRI Affirms It Can Strengthen the Foundations of the People's Economy

President Prabowo has ordered his cabinet to ensure every Indonesian citizen holds a bank account to boost financial inclusion and literacy, with national inclusion at 93.61 per cent and literacy at 69.57 per cent per the 2026 SNLIK survey. Coordinating Minister for Economic Affairs Airlangga Hartarto said population data from the civil registry (dukcapil) will be integrated with Bank Indonesia's payment and gateway systems, including QRIS. State-owned lender BRI has expressed its readiness to support the directive, stressing that access must be accompanied by financial education.

KPK summons PT Air Minum Giri Menang warehouse chief and two employees

The KPK has summoned the warehouse head and two employees of PT Air Minum Giri Menang as witnesses in a corruption case involving suspended West Lombok Regent Lalu Ahmad Zaini. The regent is suspected of receiving up to Rp12.4 billion from conflicts of interest in procurement and bribes tied to a project won by PT Meconel Sistim Instrument.

Coordinating Minister Yusril Explains His Article in the Book 'Islam ala Prabowo'

Coordinating Minister for Legal, Human Rights, Immigration and Corrections Affairs Yusril Ihza Mahendra has clarified that he did not write his article in the book 'Islam ala Prabowo', which was compiled from an interview conducted before his ministerial appointment. He denied any role in initiating, financing or titling the book, which was launched at the BAZNAS 2025 National Coordination Meeting and has sparked public debate on social media.

Breaking News! IHSG Rises 1%, Just Shy of the 6,700 Level

Indonesia's composite index (IHSG) climbed 1.02% to 6,687.03 in the second trading session on Tuesday, approaching the psychological 6,700 level. Gains were led by the basic materials and financial sectors, with Bank Central Asia the biggest index contributor, whilst foreign investors recorded a net buy of Rp83.37 billion.

Canada officially imposes retaliatory tariffs on US products

Canada has officially enacted retaliatory tariffs on US goods worth 27.6 billion Canadian dollars, matching Washington's tariffs dollar for dollar under Section 338 of the US Tariff Act of 1930. The move follows the collapse of bilateral talks in late August, after which President Trump imposed 50 percent tariffs on Canadian steel, aluminium, timber and automotive components.

The Construction SOEs Merger Epidemic

President Prabowo Subianto's accelerated consolidation of state-owned enterprises risks spreading financial distress, as Danantara merges seven ailing construction SOEs into three holdings within three months. Companies such as Adhi Karya and Pembangunan Perumahan have defaulted on or failed to restructure bonds, while Wijaya Karya, Waskita Karya and Adhi Karya carry combined debts of Rp180 trillion amid chronic losses. The editorial urges the government to address each company's problems gradually, restore commercial discipline, and stop assigning unprofitable projects rather than forcing rapid mergers to meet administrative targets.