AGP Executive Report

Biometric SIM Push: Indonesia’s biometric SIM registration drive hit 10 million users, with the communications minister urging mobile operators to keep it simple, inclusive (including for people with disabilities), and compliant while protecting biometric data. Cultural Repatriation: The FBI returned Indonesian cultural artefacts to President Prabowo, with Jakarta hoping for stronger repatriation cooperation; the items are linked to Papua communities. Education Access: The tuition-free “Sekolah Rakyat” program is set to expand to about 45,000 students in 2026, adding 30,000 more places to reach children at risk of dropping out. Children’s Day Focus: Second Lady Selvi called for stronger character education and better protection for children from violence and exploitation, including in digital spaces. Sports: PSSI chief Erick Thohir praised the women’s team after defending the AFF Women’s Cup title. Aviation Deal: Whitesky signed a $221m order for 60 Chinese eVTOL aircraft to develop urban air mobility in Indonesia.

ASEAN Security Talks in Manila: Top diplomats including US Sec. of State Marco Rubio and China’s Wang Yi met at the ASEAN Regional Forum as Iran’s war and the Strait of Hormuz blockade threaten energy and food supply chains. Money Laundering Probe: Indonesia’s former Deputy Attorney General for Special Crimes, Febrie Adriansyah, skipped a summons in a money laundering case, with investigators continuing witness and expert questioning. Free Meals Integrity Shake-up: Indonesia’s new BGN chief Sudaryono vowed “zero tolerance” for corruption and denied owning free-meals kitchen units after criticism and questions over conflicts of interest. Indonesia-China Industry Push: Jakarta and Beijing agreed to speed up the Twin Parks plan, prioritizing industrial projects tied to the Batang Industropolis SEZ. Panda Bonds Move: Indonesia is set to issue $1b in yuan-denominated panda bonds, betting on growing investor interest in China’s markets. Coconut Downstreaming: Indonesia targets becoming the main exporter of downstream coconut products, backed by a long-term roadmap and incentives. LGBTQ “Threat” Label Sparks Backlash: An ASEAN rights group warned Indonesia’s classification of “LGBTQ culture” as a non-military threat could fuel discrimination. Sports—SEA V Cup in Jakarta: Alas Pilipinas’ men’s volleyball team plays Leg 2 in Jakarta, with matches against Cambodia and Indonesia.

Coconut Downstream Push: Indonesia targets 151,554 hectares for coconut downstream development in 2026, backed by about Rp427 billion for seeds, fertilizer, and land prep—aimed at boosting value-added exports. AI Literacy in Schools: The Education Ministry and National Police expand the “Paham AI” program, training police trainers across provinces to teach senior and vocational high school students safe, responsible AI use. Digital Connectivity Boost: The Nongsa–Changi undersea cable ceremony highlights a new high-speed digital corridor between Batam and Singapore, built to support data centers, cloud services, and AI. Free Meals Integrity Check: The new head of Indonesia’s nutrition agency (BGN) says he has no ownership in MBG kitchen units and urges public reporting of misuse. Aviation Maintenance Plan: Jakarta moves to turn Kertajati Airport into an MRO hub, with operations targeted to start this year. Regional Security & Diplomacy: Indonesia’s AI balancing act continues as it joins a China-led AI body, while ASEAN foreign ministers meet amid concerns over the Iran war and South China Sea tensions. Maritime Cooperation: Pacific Partnership 2026 begins Indonesia stop in Sibolga, focusing on disaster response readiness. Human Rights Spotlight: A regional rights group warns Indonesia’s labeling of “LGBTQ culture” as a non-military threat could fuel discrimination.

Foreign Policy Debate: An editorial argues Indonesia’s president should stop acting as foreign minister, warning that personalized diplomacy can weaken institutions that must carry foreign policy long-term. Anti-Corruption & Rights: Komnas HAM calls for an independent asset-recovery body to manage corruption proceeds outside law enforcement silos, aiming for more integrated handling. Nutrition Program Fallout: Indonesia is investigating free-meal food poisoning in Blora after 19 students fell ill; the local nutrition supplier was temporarily shut while monitoring continues. Defense & Procurement: Indonesia confirms a 12-jet order for Leonardo M-346F light fighters, with deliveries starting in 2030 under Block 20 standard, plus support and training localisation. Military Commissioning: President Prabowo commissioned 1,177 military and police academy graduates as new officers at Merdeka Palace. Energy Transition: Indonesia says it has 93 hydrogen ecosystem initiatives worth Rp32 trillion, targeting faster “dedieselization” and remote power pilots. Digital & Governance: Indonesia’s copyright overhaul is framed as a move to limit AI imitation of creators, with platforms watching closely.

Energy & Trade: Indonesia has started its first Russian oil imports under a 150 million-barrel plan, with the government saying supply security comes first and imports will continue as long as rules are met. Food Security & Budget: Indonesia cut the budget for President Prabowo’s free school meals again to 229 trillion rupiah (about $12.81b), with officials warning more efficiency changes may follow. Energy Transition: The B50 biodiesel programme is already trimming oil imports by about 250,000–300,000 barrels per day, and officials say hydrogen could become cost-competitive if crude prices stay high. Fisheries & Protein: The government plans 40,000 thematic fish-farming villages to boost protein self-sufficiency and fisheries exports, while BRIN pushes spirulina to support sustainable aquaculture feeds. Digital & AI: Sagtec expanded its MaluDB managed AI memory deal across Malaysia, Indonesia and Singapore under the Skilliks.AI brand. Finance: Indonesia will issue a $1b debut Panda Bond on July 23 to enter China’s onshore renminbi debt market. Social Issues: An Indonesian court jailed 19 people for trafficking babies for adoption, including a ringleader sentenced to seven years. Local Economy: Tanjungpinang tempeh chips have entered Singapore via a retail chain, showing how small producers are scaling exports.

Financial Hub Push: Indonesia’s parliament panel has given the go-ahead to a bill creating an international financial centre, with lawmakers discussing rules and tax incentives aimed at attracting foreign investment and wealth management, potentially including Bali as a candidate location. Jobs Watch: Layoffs hit 32,389 in the first half of 2026, with West Java the hardest hit under the government’s Job Loss Insurance reporting. Food & Energy Plan: President Prabowo says sugarcane rejuvenation will be accelerated to 100,000 hectares per year in two years, alongside ethanol expansion tied to the E20 push. Co-op Procurement Scrutiny: Questions are growing over KDMP procurement after reports of large fan purchases under Agrinas, raising concerns about pricing and vendor selection. AI & Copyright Clash Ahead: Indonesia’s draft copyright overhaul would explicitly regulate AI in copyright, including banning AI imitation of a creator’s distinctive style and requiring disclosure of AI use, with tech platforms on notice. Corruption Politics: Prabowo reiterates zero tolerance for corruption as the AGO continues investigating former top prosecutor Febrie Adriansyah without detaining him yet, drawing public debate. Fuel Shortage Response: Police deployed hundreds of officers in North Sumatra to secure gas stations amid fuel scarcity and long queues, while Aceh also reports shortages. Jakarta Commuter Pain: Roadworks on the Jakarta–Tangerang toll road are still causing major congestion, doubling or moreening commute times for drivers. Digital Connectivity: Singapore’s DPM Gan Kim Yong is set to attend the Batam landing ceremony for the Nongsa Changi Cable, a key undersea link for data centres and AI-driven demand. Regional AI Coalition: China says it is forming an AI coalition with 29 countries including Indonesia, calling for open development and governance safeguards.

SOE Restructuring: President Prabowo says Danantara has cut 250 state-owned entities in 18 months, aiming to shrink the total from 1,077 to a maximum of 350 by end-2026, saving Rp50 trillion so far. Rural Infrastructure Push: He orders completion of 5,000 village bridges by year-end, with 1,000 already done by July 2026. Energy Policy: Indonesia targets full B50 biodiesel rollout at all gas stations by Oct 1, after a phased transition that started July 1. Indonesia–Chile Ties: Foreign ministers Sugiono and Chile’s Francisco Pérez Mackenna discuss cooperation in critical minerals, science/tech, agriculture and health under the IC-CEPA framework. Maritime Safety: Rescuers find seven survivors, including a 7-year-old girl, after a boat sank south of Sulawesi; at least 18 remain missing. Defense Update: Indonesia says its first aircraft carrier, the Giuseppe Garibaldi, is set to arrive Sept 20, with Lampung prepared as a home port. Digital Connectivity: Singapore and Indonesia mark the Batam–Changi undersea cable landing at Nongsa Digital Park, boosting faster links for data centres. Trade & Markets: INDEF warns stable nickel ore supply is key for downstream smelters as quotas are adjusted. Sports (SEA V Cup): Alas Pilipinas’ Jude Garcia and Josh Ybañez shine as the team heads to Leg 2 in Jakarta.

Maritime Rescue: Indonesia’s search teams have found seven survivors, including a 7-year-old girl, after the KM Nurul Salsa sank off South Sulawesi near Selayar Islands; five were rescued Saturday after clinging to a fish trap, and two more were found Sunday, while at least 18 others remain missing. AI Diplomacy: Indonesia has joined WAICO, a China-initiated intergovernmental AI cooperation group, aiming to speed up AI development and shape global AI governance. Digital Tourism Push: Singapore’s tourism board and Traveloka expand promotions to include Indonesia and other regional markets, using co-branded campaigns and privacy-safe travel insights. Aviation & Tourism: TransNusa will launch direct Bali–Phuket flights from 9 September, with four weekly services rising to daily during peak season. Sports—SEA V Cup: Cambodia stunned defending champions Indonesia to win the SEA V Cup men’s title in a five-set final, with the second leg set for Jakarta later this month.

Maritime Rescue: Indonesian rescuers found five survivors, including a 7-year-old girl, after a passenger boat sank off Selayar Island in South Sulawesi; the KM Nurul Salsa had engine failure and went down on Wednesday with 78 people aboard, and search teams are still looking for 18 others. More Survivors Found: A mother and son were later rescued on an uninhabited island, while earlier rescues reported people clinging to fish traps and floating debris for days. Child Online Safety: Indonesia’s new child online safety rules (PP TUNAS) aim to help parents protect kids online, limiting under-16 account creation on high-risk platforms and urging active family monitoring. Anti-Corruption Ethics: Legal affairs minister Yusril Ihza Mahendra said fighting corruption needs stronger ethical and moral awareness, not just laws and enforcement. Energy Policy: President Prabowo said diesel imports have stopped since July 2026 after B50 biodiesel rollout. Trade & Industry Push: A think tank urged Indonesia to accelerate downstream processing and diversify exports to boost resilience. Sports: P V Sindhu ended a near-two-year title drought by winning the Japan Open, beating Akane Yamaguchi in Tokyo.

Food & Prices: Indonesia’s free nutritious meal program is back nationwide, with nearly 30,000 designated kitchens reopening as students return—pushing up prices for rice, vegetables, eggs and broiler chicken, including a weekly jump of more than 4% for chicken. Sovereign Investment: Danantara’s investment chief says the fund must “outlast presidencies” to build long-term confidence, backing Jakarta’s market demutualisation and a Bali financial centre. ASEAN–China Connectivity: InJourney Airports promotes six regional airports to boost ASEAN-China air links, aiming to capture rising China-linked travel demand. Volcano Watch: Mount Semeru erupted three times, with the second blast triggering a pyroclastic flow about 3.5 km down its slopes. Sports (SEA V Cup): Indonesia set up the SEA V Cup title match against Cambodia after beating Vietnam; meanwhile, Philippines’ Alas Pilipinas settled for fifth after a win over Myanmar. Corruption/Investigation: Malaysia’s MACC opened a probe into KWAP’s RM200m eFishery investment loss. Crime Probe: Police found 74 kg of gold bars hidden in a secret safe at a Bogor home, tied to an alleged corruption case.

Global AI Diplomacy: Indonesia backs WAICO as 29 countries sign in Shanghai, with Airlangga saying AI is the next chapter for Indonesia–China cooperation and Indonesia invites Huawei/ByteDance to deepen AI and cloud ties. Energy & Industry: Prabowo targets up to 50 ethanol plants for the E20 program, while Indonesia courts Chinese firms for 100GW solar power projects and VinFast opens 20 e-motorcycle dealerships nationwide. Disaster & Safety: Semeru erupted three times in East Java, sending ash 500–1,000m; North Sumatra floods hit 200 households; a moderate 5.4 quake struck the Sulawesi Sea with no tsunami risk. Governance & Rights: ATR/BPN stresses legal certainty on land rights to secure food security; Pratikno unveils a seven-step strategy for violence-free schools. Finance & Fraud Watch: Malaysia’s MACC launches an investigation into KWAP’s RM163.4m eFishery loss after alleged financial report manipulation. Environment & Health: Singapore, Indonesia and Malaysia warn of severe haze risk; Indonesia’s “Ibu Baron” reticulated python is officially measured at 7.22m as the longest snake ever recorded.

National Energy & Food Security: Indonesia is pushing ahead with the mandatory B50 biodiesel plan, targeting about Rp170 trillion in 2026 foreign-exchange savings and up to 2.1 million jobs, while also aiming for major CO2 cuts. Infrastructure & Industry: The government says it will complete sugarcane replanting within two years to boost domestic sugar output and support bioethanol. Energy Reserves: Indonesia plans to store imported “Russian” crude as part of national reserves, with origin checks still underway. Transport Safety: A nine-vehicle pile-up in North Sumatra killed four and injured eight, as police detain a suspect driver. Sports (Indonesia in focus): PV Sindhu reached the Japan Open 2026 semifinals after Nozomi Okuhara withdrew, setting up a Chen Yufei clash. Culture & Media: Tiffany Young announced her debut solo album “Edge of Calm” (Aug 20) and an Asia tour that includes Jakarta (Sep 19). Tech & Governance: China’s Xi used WAIC in Shanghai to argue AI shouldn’t be dominated by one country, while BRICS discussed closing the AI digital divide.

AI & Copyright: Indonesia is drafting a copyright overhaul that would explicitly recognize AI use, bar AI from copying a creator’s distinctive style, require disclosure when AI is used, and force tech platforms to pay for news use and AI training—setting up a direct clash with Google and other platforms. AI Governance: China’s WAIC in Shanghai launched the World Artificial Intelligence Cooperation Organization (WAICO), with 29 countries signing, including Indonesia, aiming for safer, more inclusive AI rules. Energy & Industry: President Prabowo says Indonesia will launch a national electric motorcycle within weeks and push domestic-made cars and bikes; he also unveiled a two-year sugarcane rejuvenation plan to reach full sugar self-sufficiency. Infrastructure & Growth: Bank Indonesia says business activity strengthened in Q2, led by agriculture, construction, mining, and food services, with capacity utilization rising. Disaster & Safety: BNPB reports the Labuan Bajo wildfire is fully extinguished after burning 25 hectares; in North Sumatra, a nine-vehicle pile-up killed 4 and injured 8. Economy Watch: Reuters reports BI is monitoring bank liquidity distribution to keep lending stable and support growth. Sports: Indonesia beat the Philippines in the SEA V Cup, while PV Sindhu advanced to Japan Open semifinals.

AI Policy Push: Indonesia is drafting a National AI Strategy, Road Map and AI ethics rules to move from basic use to deeper capability across government, health, finance and public services. World AI Deal: 29 countries signed the World Artificial Intelligence Cooperation Organization (WAICO) agreement in Shanghai, with Indonesia among the founding members. Energy & LNG: Indonesia is accelerating the Abadi Masela LNG project, with construction underway and officials citing major investment and national development goals. Economy & Finance: Indonesia cut micro-loan interest rates to 8% to support MSMEs, while foreign inflows reportedly rose after rate hikes. Environment & Waste: Indonesia is tightening waste management, including making corporate packaging waste handling mandatory and fast-tracking waste-to-energy projects. Regional Security: Indonesia and Singapore launched a defense alumni association to deepen ties, as the region watches shifting maritime and geopolitical risks. Sports (Jakarta): Asian U19/U23 boxing continues in Jakarta, with Kazakhstan and others winning medals. Tech & Phones: Xiaomi’s Redmi 17 4G appears in Indonesian and Malaysian approvals, with leaked specs pointing to a bigger battery and faster charging.

Maritime Safety: A passenger boat sank off Indonesia’s Selayar Islands near South Sulawesi after engine failure, killing 1 and leaving 23 missing (74 people reportedly on board). Energy & Industry: President Prabowo broke ground on the Abadi Masela LNG project (about US$20.9bn), promising domestic-first gas use (at least 60%) and faster completion; PLN also says it’s pushing Bali’s energy independence with renewables and grid upgrades. Food Security: Indonesia plans to seize rice export opportunities as global prices rise, while keeping domestic stability using Bulog reserves. Digital Policy: Indonesia is mapping steps to close the AI capability gap, and the government backs school device restrictions to protect children online. Governance & Media: ANTARA urges a presidential regulation to tackle disinformation through stronger state media coordination. Crime & Accountability: Malaysia’s KWAP eFishery investment is set for possible PAC review after fraud allegations tied to financial statement manipulation. Public Safety: A military munitions warehouse blast in Java killed one soldier and injured six, described as an accident. Social Harm: Indonesia warns of exploitation of migrant fishers lured by false promises.

Indonesia-Singapore Defense Ties: Indonesia and Singapore reaffirmed their defense partnership in Jakarta and launched a new Indonesia-Singapore Defense Alumni Forum to deepen military-to-military links. Central Banking & Markets: Bank Indonesia said its June rate hikes helped pull about Rp105 trillion in foreign inflows into government bonds and BI Rupiah Securities by early July, supporting exchange-rate stability. Family Planning Push: Indonesia’s Population and Family Development Ministry is prioritizing family planning for the lowest-income households to cut unmet contraceptive needs and support stunting reduction. Sports (SEA V Cup): Cambodia stunned Alas Pilipinas 25-23, 28-30, 25-20, 22-25, 15-8, setting up a tough Friday matchup against Indonesia. Indonesia Economy Watch: Finance Minister Purbaya said Indonesia’s debt is manageable, citing a debt-to-GDP ratio around 40%, well below the 60% fiscal limit. Indonesia Capital Markets: The IDX added 37 stocks to its high shareholding concentration watchlist, using a new price impact ratio method to flag potential ownership concentration. Indonesia Tech/Finance: Bybit formally launched its locally operated platform in Indonesia, while Tokocrypto rolled out tokenised stocks.