AGP Executive Report

Cabinet Shake-Up: Indonesia appointed economist Suahasil Nazara as finance minister, replacing Purbaya Yudhi Sadewa, with Nazara pledging fiscal credibility and continuity while balancing Prabowo’s growth push. Maritime Disaster: Search teams kept looking for 129 missing people from the Virgo Transport 8 ferry in the Java Sea; 114 of 243 were accounted for as SAR operations expanded and reorganised. Energy Security & Policy: Pertamina sought an excise exemption for fuel-grade ethanol to speed biofuel rollout, while the Trade Ministry reiterated protection for labor-intensive industries like textiles and footwear. Fuel Crisis Response: After Makassar saw long gas-station queues, the energy minister said national fuel reserves are secure and the issue was localized demand shifts. Environment & Risk: El Niño is now “super,” raising the odds of harsher weather impacts, as Indonesia also faces ongoing wildfire and haze pressures. Regional Spotlight: Indonesia sealed four East Kalimantan firms over fire investigations, and landslides in Central Aceh killed 1 and injured 13.

Maritime Disaster: Indonesia’s Java Sea ferry tragedy is still unfolding: the Virgo Transport 8 (243 aboard) capsized in bad weather, with at least 6 dead and about 130 missing as rescuers pull more survivors from rough seas. Safety Scrutiny: The disaster comes days after Indonesia’s transport safety body flagged long-running problems in Ro-Ro operations, including hazardous cargo declarations and overloaded manifests. Local Governance: Jakarta plans to expand Satpol PP with a new command center by 2027, aiming to fix understaffing and coordination gaps. Climate & Health: Wildfires and peat burning are pushing emissions toward missing Indonesia’s climate target, while haze-linked respiratory illness risks are rising. Food Program Fallout: Two victims of suspected free-meal poisoning from North Sumatra have been transferred to Jakarta for treatment after earlier illnesses tied to the MBG program. Tourism Tragedy: A Bali tourist died after falling from the steep Kelingking Beach cliff, highlighting ongoing risks at popular sites. Sports Culture: Pertamina is hosting MotoGP public viewing in Jakarta ahead of the Mandalika race. Regional Diplomacy: Indonesia’s BRICS ties stay in focus as leaders push local-currency trade and broader cooperation.

Maritime Emergency: Indonesia’s Basarnas is racing to find people after the Virgo Transport 8 ferry (243 onboard) lost contact in the Java Sea in bad weather; officials now say 6 died and 130 remain missing, with 107 rescued, and the vessel was reported capsized but not yet fully confirmed sunk. Crisis Response: A multi-agency SAR command post has been set up at Trisakti Port in Banjarmasin, with helicopters and ships deployed and emergency coordination involving port authorities, Pelindo, and the ship’s agent. BRICS Spotlight: At the 18th BRICS Summit in New Delhi, leaders adopted the New Delhi Declaration while pushing resilience, local-currency trade, and technology cooperation; China confirmed it will host the 2027 summit. Politics & Culture: Rahul Gandhi sparked a backlash over a BRICS dinner menu jab about Indians being “non-vegetarian,” while BJP hit back, saying guests enjoyed Indian vegetarian cuisine. Indonesia Abroad: Indonesia’s culture is on display in Taiwan’s Formosa Warrior Culture Festival, with Indonesian performers and community members drawing crowds in Taipei.

BRICS Summit Diplomacy: BRICS leaders in New Delhi adopted the “New Delhi Declaration,” urging “maximum restraint” amid Middle East tensions, calling for an end to forced displacement of Palestinians from Gaza, and backing a UN Security Council overhaul plus wider Global South representation. Trade & Finance: The bloc pushed for WTO dispute-settlement restoration and reform, while also advancing ideas to boost local-currency trade and payment links to reduce dollar dependence. Indonesia at BRICS: Indonesian President Prabowo Subianto attended the summit as Indonesia emphasized stronger domestic resilience and multilateral cooperation. Orangutan Repatriation: Indonesia’s forestry authorities said they are ready to repatriate five orangutan babies found in India after treatment and origin verification. Environment & Safety: Indonesia reported a Mount Ciremai forest fire fully extinguished after burning about 46 hectares, while wildfire-linked haze continues to threaten health and wildlife. Culture & Soft Power: Modi’s BRICS gala dinner highlighted Indian cuisine and performances, including “Navarasa” and a “BRICS Symphony” bringing together artists from member countries. Sports: Indonesian speed climber Antasyafi Robby won gold at the World Climbing Series Guiyang 2026.

BRICS Summit in Delhi: Leaders including Indonesia’s Prabowo Subianto, China’s Xi, Russia’s Putin and Iran’s Pezeshkian opened the 18th BRICS summit as India pushes global governance reform and cross-border payment links; the bloc also adopted a joint declaration expressing “deep concern” over Middle East escalation and urging maximum restraint. Indonesia Mercury-Free Push: Indonesia is intensifying efforts to phase out mercury, targeting elimination by 2030 and PCBs by 2028, with recalls of mercury medical devices and tighter hazardous waste management. Trade & Services for BRICS: Kadin proposes easing cross-border mobility for firms and professionals, improving payment interoperability, and boosting services trade via human resources and infrastructure. Earthquake Near Jakarta: A magnitude 6.5 quake hit near the Thousand Islands; BMKG said there’s no tsunami threat, with tremors felt across parts of Java and Sumatra. Wildlife Trafficking Probe: Odisha police detained three suspects linked to a case involving five orangutans rescued from an Indian forest, raising questions about trafficking routes. Tourism Safety: An Australian tourist died after falling about 80 metres from Bali’s Kelingking Beach cliff; authorities are investigating.

BRICS Summit in Delhi: Indonesia’s President Prabowo Subianto arrived in New Delhi for the 18th BRICS Summit, joining other leaders as India pushes a “Delhi Declaration” agenda on reform, multilateralism and a shared stand against terrorism. Global trade & taxes: Indonesia’s SPP-TDLN digital VAT system took effect, with officials stressing it complements existing VAT rules and isn’t meant to double-tax consumers. Wildlife & justice: Indonesia is preparing technical steps to repatriate five baby orangutans rescued in Odisha, while Odisha police probe a suspected trafficking network, including a black SUV lead. Disaster watch: A magnitude 6.2 earthquake hit Java with no immediate damage reports, as Indonesia also continues monitoring Anak Krakatau after earlier eruptions disrupted flights and left journalists missing. Business & industry: GIFA Indonesia and METEC Indonesia returned in Jakarta with an Aluminum Pavilion aimed at boosting downstream metal and foundry tech. Energy & markets: Asia stocks slid as oil prices stoked inflation fears, while Indonesia’s coal outlook faces renewed volatility tied to El Niño risks.

Jakarta Court Ruling: TaniHub and two subsidiaries ordered to pay Rp364 billion (about US$20m) in restitution in a venture-capital graft case, with asset seizure possible if fines aren’t paid. Student Rights Clash: Civil groups condemn Jakarta’s move to send detained student protesters to a 10-day military “state defense” program in Bogor, calling it intimidation. Wildfire & Health Pressure: Indonesia’s IKN authority is ramping up aerial patrols to stop new fire hotspots as smoke reappears in parts of East Kalimantan; separately, haze-linked respiratory monitoring intensifies in the region. Volcano Watch: Mount Anak Krakatau stays at Alert Level III, with hazards including ashfall and possible lava flows; authorities keep a 3-km exclusion zone. Wildlife Trafficking Probe: Indonesia seeks the return of five baby orangutans found in Odisha, with DNA checks and an investigation into a suspected cross-border smuggling network underway. BRICS Spotlight: Indonesia’s presence at the 18th BRICS Summit in New Delhi continues to draw attention as leaders and business forums push trade, finance and cooperation.

Early Election Buzz: Prabowo’s approval ratings reportedly slid from 81.2% (Nov) to 51.1% (July), with Democratic Party leader AHY hinting at the need for “honest” reflection on economic hardship and stronger democratic safeguards. Digital Child Safety: Indonesia’s Communications ministry is pressing Meta to turn PP TUNAS child-protection commitments into real platform protections, warning administrative fines may follow. Cybercrime: Indonesia is being hit by an Android banking app-cloning campaign using Work Profile tricks to dodge fraud checks, with Group-IB estimating nearly $1m in losses. AI Readiness: A deputy minister says Indonesia has the base for advanced AI—connectivity, talent, and regulation—while pushing for faster fiber and wider 5G. Food Program Fallout: Civil groups give the government seven days to overhaul Prabowo’s free meals after alleged poisonings, threatening legal action. Volcano & Haze Response: Anak Krakatau remains at Level III as ash disrupts flights and authorities step up tsunami preparedness and wildfire/peat-fire monitoring. BRICS in Delhi: Indonesia’s Prabowo is set to attend the summit amid big security plans and a push to keep Global South priorities—food, energy, and supply chains—front and center.

Volcano & Disaster Response: Indonesia is keeping Mount Anak Krakatau at Level III while BNPB steps up tsunami preparedness in Lampung, including evacuation routes and early-warning sirens, as satellite ash detection fades. Wildfires & Haze: Firefighting teams extinguished 421 hectares across six provinces, while West Kalimantan and other areas remain under haze pressure and officials urge protection for vulnerable groups. BRICS Summit Watch: India’s New Delhi BRICS summit kicks off this weekend with Xi Jinping confirmed for Sept 12-13, as leaders push Global South priorities like food and energy security and resilient supply chains. Trade & Industry: Indonesia’s mining non-tax revenue hit Rp 108 trillion through Aug 31, boosted by higher commodity prices, while PT Timah expands tin exports to the Philippines and the UK. Security & Diplomacy: Indonesia backs the UK’s move to restrict trade tied to illegal Israeli settlements, and authorities also report ongoing search efforts for missing journalists near the Sunda Strait. Digital Policy: Indonesia warns about AI “data poisoning” risks to journalism as it calls for ethical AI use.

Jobs & Growth: Indonesia targets 2.57m–3.49m jobs in 2027 as the government pushes a 6% growth plan, with employers warning the real test is creating decent, sustained work. Banking Inclusion: President Prabowo’s push for bank accounts for Indonesians aged 17+ is back in the spotlight, with BRI and BSI tasked to prepare the rollout. Volcano Disruption: Anak Krakatau ash keeps disrupting travel, while BMKG also tracks new ash from Ili Lewotolok, Dukono and Ibu—urging calm but vigilance. Wildfires & Enforcement: Police report mass arson arrests as Indonesia battles ongoing blazes, with pressure on whether crackdowns will hit the real culprits. Cyber Safety: MikroTik warns of exploited RouterOS flaws and urges users not to expose SSH to the internet—Indonesia is among the most affected. Digital Fraud: Yogyakarta’s Sultan falls victim to a deepfake financial scam, highlighting how AI scams are spreading fast. Regional Links: TransNusa launches its Bali–Phuket route, betting on a tourism lift and easier island-hopping. BRICS Diplomacy: Indonesia’s Prabowo is set to attend the New Delhi BRICS summit as the bloc tries to align on a joint declaration amid West Asia tensions.

Volcano Crisis: Rescuers have resumed the search for eight people, including five Indonesian journalists, missing after a speedboat disappeared near Mount Anak Krakatau; rough seas, poor visibility, and ongoing ash are complicating efforts. Volcanic Monitoring: BMKG reports ash from three additional volcanoes—Ili Lewotolok, Dukono, and Ibu—alongside Anak Krakatau, with authorities urging the public to stay vigilant and rely on official updates. Wildfire & Haze Fallout: Malaysia is still awaiting confirmation from Indonesia before deploying assets to help fight transboundary fires that are worsening haze. Public Safety: Indonesia imposed a 10-year entry ban on an Australian national deported from Bali over sexual indecency. Finance & Inclusion: Bank Indonesia is expanding local currency transactions to protect rupiah stability, while BRI and BSI coordinate a nationwide bank-account opening push. Sports & Society: Prabowo pledges Rp3 billion bonuses for Asian Games gold medalists as Indonesia targets badminton men’s team gold. Health & Faith: Indonesia urges state universities to set up zakat collection units (UPZ) to support students.

Volcano Response: Indonesia’s Anak Krakatau activity is easing, but authorities are still monitoring aviation risks and ash dispersion after repeated eruptions disrupted flights and stranded hundreds of thousands; airports have been reopened in phases, with aircraft inspections continuing. Search & Rescue: Indonesian teams are searching for missing journalists after a volcano mission went silent, prompting ANTARA to deploy an emergency response team to keep communication with Basarnas and joint search units. Disaster Preparedness Scrutiny: With multiple crises overlapping—volcanoes plus ongoing fires—questions are growing over whether Indonesia’s disaster mitigation spending and prevention efforts are keeping up. Public Health & Safety: Indonesia’s wider health concerns also stay in focus as reports highlight the scale of passive smoke harm and renewed attention on protecting vulnerable groups. Regional Trade & Diplomacy: ASEAN-Pakistan business leaders are pushing for more structured, result-oriented economic partnerships—an angle that ties into Indonesia’s broader regional engagement. Environment & Land Use: New reporting flags thousands of potential fire hotspots on RSPO-managed land, underscoring the ongoing haze and land-clearing debate across Indonesia and Malaysia.

Volcano Disruption Update: BMKG says eight airports closed after Mount Anak Krakatau are now safe from ash, with gradual reopenings starting early Tuesday and Jakarta flights resuming after a two-day halt that stranded about 341,000 passengers. Public Health & Prices: Indonesia’s Health Ministry moves to secure stable mask supplies after reports of price gouging, warning against hoarding and threatening sanctions. Energy Transition: The Energy Ministry reports biodiesel use hit 10.7 million kilolitres from January to early September as the B50 rollout expands, with tests still ongoing for some sectors. Waste Crisis: The Environment Ministry says only a quarter of daily waste is properly managed, with most landfills still relying on open dumping. Railway Finance: Finance Minister Purbaya says Indonesia’s INA (or SMI) will take control of the China-funded Whoosh operator stake on Sept. 15, as debt restructuring continues. Rice Assistance: Govt allocates Rp17 trillion for Q4 rice aid for 33.2 million low-income families, shifting to 30kg quarterly packages via Bulog. ASEAN Haze: Malaysia’s PM urges ASEAN to review its transboundary haze mechanism as air quality remains dangerously poor in parts of Borneo.

Volcano Disruption: Mount Anak Krakatau’s ash keeps wreaking havoc on travel, with Indonesia reporting 2,961 flights affected and about 341,000 passengers stranded as airport closures extend into Monday night. Aviation Response: Soekarno-Hatta delays hit 624 flights, while the government readies 10 airports for 24-hour operations and diversions to restore schedules. Public Health Alert: Banten has put all health facilities on high alert for ash-related respiratory, eye and skin risks, with 24-hour emergency services activated. Education Fallout: West Java temporarily suspends the Free Nutritious Meals (MBG) programme for schools shifting to remote learning due to ash exposure. Immigration Relief: Emergency stay permits and overstay fee waivers are being issued for foreigners stranded by the cancellations. Infrastructure Finance: Indonesia confirms it has internal funds to cover Whoosh high-speed rail debt obligations after a planned mid-September ownership transfer. Climate Watch: El Niño is confirmed as “very strong,” raising concerns for extreme weather and impacts across the region.

Disaster Response: President Prabowo orders a stronger forest-and-land fire crackdown across six priority provinces, with extra firefighting assets near IKN to stop flames reaching the capital’s core, plus a push for a comprehensive disaster mitigation master plan. Volcanic Disruption: Mount Anak Krakatau’s renewed activity keeps ash drifting over Greater Jakarta, forcing extended airport suspensions (Soekarno-Hatta, Halim, Radin Inten II, Husein Sastranegara) and leaving about 270,000 passengers stranded as flights are delayed or cancelled. Weather Modification: BNPB prepares cloud-seeding and water-misting operations to help clear volcanic ash once conditions and flight safety allow. Education & Daily Life: Schools in ash-affected areas shift to online learning, while West Java temporarily pauses the Free Nutritious Meals (MBG) programme for some schools due to ash risks. Aviation Costs: Airlines warn losses could reach up to Rp19 billion (about US$1.1m) per day if the disruption drags on. Regional Haze: Indonesia’s fire season continues to strain ASEAN haze response as smoke worsens air quality beyond borders.

Volcanic Crisis in Indonesia: Mount Anak Krakatau erupted again, sending ash over western Indonesia and forcing Soekarno-Hatta and seven other airports to suspend operations, leaving about 170,000 passengers stranded and delaying 1,500+ flights; authorities urged people to stay away from the danger zone, wear masks, and follow official updates as cloud-seeding was planned to help clear ash. Regional Health & Air Quality: In haze-hit areas, hospitals reported no haze-related cases in some provinces, but officials warned the risk isn’t gone and monitoring will continue for respiratory and eye irritation. Foreign Policy: Eight Arab and Muslim countries, including Indonesia, condemned Israeli ministers’ calls for further Palestinian displacement from Gaza, saying it violates international law and threatens peace efforts. Diaspora Policy: Indonesia’s limited dual citizenship plan for selected “talent” diaspora drew support from Indonesians abroad, though details like fees and eligibility remain a question. Business & Media: Godrej Consumer Products consolidated global media operations under WPP Media, expanding a single agency approach across multiple countries including Indonesia.