AGP Executive Report

Earthquake Watch: A 6.7-magnitude quake struck near Palu in Central Sulawesi, triggering strong aftershocks and scattered damage; hospitals evacuated patients as residents fled to open areas, with no tsunami warning issued. Rural Electrification: Indonesia will allocate Rp9.7 trillion in 2027 to expand village electricity access under multiyear contracts, aiming to push nationwide electrification toward 2029. Food Program Oversight: The National Nutrition Agency (BGN) will fully audit Free Nutritious Meal (MBG) kitchens during school holidays, temporarily halting underperforming kitchens and reshaping incentives based on actual recipients. Energy Security: An IEA report says the Iran war is a “wake-up call” for Southeast Asia’s energy overreliance on routes like the Strait of Hormuz, warning of a steep rise in import bills without faster diversification. Climate & Oceans: New research at the Our Ocean Conference highlights that large areas of coral reefs— including in Indonesia and the Philippines—may be more climate-resilient than previously feared, though protection gaps remain. Indonesia-Germany Ties: President Prabowo met Germany’s Steinmeier, stressing the strategic partnership as global uncertainty grows.

UK Online Safety: Prime Minister Keir Starmer announced a ban on social media for children under 16, covering TikTok, Snapchat, YouTube, Instagram, Facebook and X, with messaging apps like WhatsApp exempt; the government aims to pass the law by late December and start it in spring next year, while critics warn it could push teens toward less-safe platforms. Indonesia Youth & AI: Indonesia’s Population and Family Development minister stressed mental resilience and digital literacy for young people as AI-driven feeds blur truth and misinformation. Qatar-Indonesia Ties: Qatar and Indonesia signed an MoU to set up foreign-ministry political consultations, with Qatar pledging $4 billion in investment and planning momentum around the 50th anniversary of diplomatic relations. G7 & Iran Shipping: Canada’s Carney said it stands ready to help restore shipping in the Strait of Hormuz if Iran-US talks progress, as the G7 weighs resilience to Middle East shocks. Indonesia Economy Data: BPS kicked off the 2026 Economic Census fieldwork in Southeast Sulawesi, running June 15 to Aug 31 and expanding coverage to agriculture, forestry and fisheries. Environment & Health: A study finds food and beverage plastic dominates coastal macroplastic litter worldwide, while a regional dengue push in Asia aims to coordinate knowledge-sharing and action.

Indonesia IPO Watch: PT Niramas Utama (Inaco) is set to raise up to Rp392 billion (about $22m) via an IPO on the IDX, aiming to expand gummy and jelly production and logistics ahead of July 7 listing. Politics & Diplomacy: President Prabowo welcomed German President Frank-Walter Steinmeier in Jakarta for talks on defense, maritime cooperation, trade and investment, climate, and people-to-people ties. Markets & Currency Mood: Indonesia’s JCI jumped on Monday, with analysts pointing to global risk sentiment after a U.S.-Iran peace deal announcement and renewed optimism. Investor Confidence Push: Danantara says it will follow Prabowo’s directive to disclose investment data transparently to boost trust and attract higher-quality inflows. Student Protests: Multiple student groups plan demonstrations around Jakarta, including near the State Palace and other key points, with police deploying thousands of personnel. Tech & AI Adoption: Telkom Indonesia launched “AIcosystem” to accelerate AI use across industries and society. Online Safety Debate: The UK announced a ban on social media for children under 16, joining a wider global trend that also includes Indonesia. Global Security Angle: A Lowy Institute report warns China’s ability to strike Australia could grow, with near-term risks tied to cyberattacks and undersea cable disruption.

Food Security & Dairy Push: Indonesia is accelerating milk self-sufficiency, saying it produces about 1 million tonnes a year versus demand of 4 million, with roughly 80% still met by imports—officials want an integrated dairy ecosystem from farms to processing to cut geopolitical supply risks. Investor Anxiety & Rupiah Pressure: Indonesia’s economy is facing a “perfect storm” of high energy costs and policy moves that critics say unsettle investors, as the rupiah slips below 18,100 per dollar and the stock market has shed about a third of its value this year, even after central bank rate hikes. Fuel Subsidy Reform Debate: The World Bank urges Indonesia to reform generalized fuel subsidies, noting the richest 20% capture more than half the benefits, while global oil prices strain the budget—pushing for gradual price adjustments and targeted cash support. Student Protests & Free Meals: Student groups keep pressing for changes to the free nutritious meal (MBG) program and other policies, while the government says MBG will continue but kitchens for new construction are temporarily paused as governance is reviewed. Climate Hit to Wildlife: New research links extreme rainfall and landslides to the deaths of at least 7% of Indonesia’s rare orangutans, underscoring how climate change is worsening biodiversity loss. Infrastructure & Connectivity: Prabowo orders a major renovation of Jakarta’s Gambir Station into a modern transport hub, while a Sarawak–Johor submarine cable project awaits Indonesia’s approval for seabed survey work.

Energy & Investment: Eni and Petronas have officially launched the Searah 50/50 JV, pooling 19 gas assets across Indonesia and Malaysia and targeting production growth beyond 500,000 boe/d in three years. Finance & Trade: Bank Indonesia and China’s central bank agreed to deepen local-currency and cross-border payment cooperation, including expanding their currency swap arrangement. Food & Social Policy: Indonesia is still studying whether to add sugar to the food assistance program, while nutrition labeling for drinks (Nutri-Level) faces skepticism from consumers and small businesses. Economy & Markets: Despite a slight rupiah rebound after rate hikes, investors remain uneasy as critics cite subsidy and export-control moves. Tourism & Society: The Tourism Ministry is pushing the Clean Tourism Movement nationwide, and it’s also working to manage rising airfare costs. Sports & Culture: Jakarta’s BTN Jakarta International Marathon drew 45,500 runners and 1,012 international participants, while Indonesia won the ITTF World Masters mixed doubles 50 title. Regional Links: Indonesia and Saudi Arabia are expanding tourism ties, and Indonesia is training vocational students for telecom network jobs.

Student Protests: Hundreds of Indonesian students marched in Jakarta under “Heading to Bankrupt Indonesia,” demanding the cancellation of the fuel price hike and lower staple prices, while also criticizing “wasteful” spending and flagship programs like free meals and village cooperatives. Food Security Push: Deputy Agriculture Minister Sudaryono said food security is central to Prabowo’s economic transformation, linking it to sovereignty and plans to boost output, modernize farming, and expand irrigation. BRICS Agriculture: BRICS adopted the Indore Declaration, backing cooperation on farmers’ seed rights, a digital agriculture network, and agroecology, with India coordinating key initiatives. Rupiah & Costs Watch: The Health Ministry said medicine price increases tied to rupiah volatility will stay within “reasonable limits” for BPJS medicines, with a 20% ceiling. Education Revamp: Indonesia plans to revitalize 71,744 schools in 2026, expanding last year’s renovations and aiming to repair all schools by end-2028. Infrastructure & Growth: Indonesia is accelerating railway expansion to 10,524 km to cut logistics costs and ease congestion, with passenger numbers rising. Tourism Retail Plan: The Tourism Ministry is mapping regional retail hubs to grow shopping tourism, starting with cities like Jakarta, Bandung, Batam, Medan, Surabaya, and Bali. El Niño Warning: Forecasters say El Niño is officially underway and could be very strong and costly, raising risks of major weather disruption.

Rail Push: Indonesia is expanding its national railway network to 10,524 km, up from 6,927 km, aiming to cut logistics costs and boost regional connectivity, with passenger numbers rising 8.8% to nearly 550 million in 2025. Fuel Price Clarity: The government says non-subsidized Pertamax and Pertamax Green jumped sharply to follow world oil prices, while subsidized Pertalite and Solar stay unchanged, as students protest around the HI Roundabout. Nickel Investor Jitters: Chinese investors have protested Indonesia’s nickel policy direction, citing worries over higher royalties, tighter FX rules, reduced mining quotas and enforcement uncertainty. Wildlife Watch: A critically endangered Sumatran tiger was captured on camera in the Hutan Harapan restoration area, with further identification underway. Jakarta Air Alert: Jakarta’s air quality hit unhealthy levels, with residents urged to wear masks and limit outdoor activity. Tourism Link: Indonesia and Saudi Arabia are looking to boost two-way tourism flows, including expanding experiences beyond Mecca and Medina. Tech for Emergencies: Starlink and the U.S. State Department signed an MOU to speed disaster communications, building on prior relief support including in Indonesia.

Student Protests: Hundreds of Indonesian students flooded central Jakarta to protest Prabowo’s spending priorities, fuel price hikes, and “wasteful” free-meals and village cooperative programs, with police and military blocking parts of the march. Macroeconomy & Markets: Bank Indonesia reported foreign investors bought Rp19.02 trillion worth of SRBI and government bonds after a rate hike, helping the rupiah firm to around Rp17,865–17,875 per US dollar. Climate Watch: El Niño has officially returned, with forecasts warning it could intensify into a very strong event, raising risks for rainfall disruption and food and economic shocks. Wildlife Crisis: Research links extreme rainfall and Cyclone Senyar to the deaths of about 7% of the world’s rarest great apes (Tapanuli orangutans), pushing them closer to extinction. Trade & Food Safety: Indonesia launched its first radioactive contamination testing lab for seafood in East Jakarta to meet stricter export standards. Labour Rights: The ILO adopted a landmark treaty setting binding protections for gig workers in the platform economy. Sports & Youth: Indonesia’s wushu federation targets gold at the 2026 Asian Games as it ramps up athlete regeneration.

Sovereign Finance: Indonesia’s Danantara, a unit of the state wealth fund, sold a debut $1.5bn U.S. dollar bond, with strong demand pushing yields down and testing foreign appetite for Indonesian assets amid rupiah worries. Monetary Policy: Bank Indonesia’s rare off-cycle rate hike to 5.5% is already drawing foreign inflows back into short- and medium-term government bonds, helping the rupiah rebound below 18,000 per dollar. Diplomacy: Indonesia says it remains open to mediate between the U.S. and Iran as tensions flare in the Persian Gulf, while BI and China’s central bank expand local-currency cross-border payment cooperation. Education Push: President Prabowo orders a rapid review of school textbooks to keep learning materials up to date, including tech developments, as the government also plans to build about 100 Integrated National Schools in 2026. Environment & Risk: Three volcanoes erupted in eastern Indonesia, and officials warned of ash activity levels as communities brace for disruptions. Creative Economy: Indonesia urges upskilling for creative workers at UNESCO, while women’s leadership and workplace transformation stay on the policy agenda.

Commodity Oversight: Danantara Sumberdaya Indonesia (DSI) says it was created to stop export fraud like transfer pricing and under-invoicing—not to seize goods or act as a broker—while it oversees Indonesia’s strategic exports during a transition period. Rupiah & Policy Response: Indonesia’s deputy finance minister tells AFP external and domestic pressures are “manageable” despite rupiah weakness and central bank rate hikes, arguing inflation remains within target. El Niño Watch: The US Climate Prediction Center says El Niño conditions are present and expected to strengthen, raising risks of below-normal rainfall for Southeast Asia and Indonesia’s dry-season and rice planting outlook. Wildlife Crisis: New research links extreme rainfall and landslides to the deaths of about 7% of the critically endangered Tapanuli orangutan population, pushing the species closer to extinction. Creative Economy: Indonesia and South Korea plan a high-level creative industries cooperation committee to boost co-productions, talent exchanges, and digital game development. Public Safety & Crime: Authorities arrested an Australian fugitive in Bali after he hid in a private jet lavatory using a fake Brazilian passport, with deportation following.

Rupiah Watch: Indonesia’s rupiah staged a late-week rebound, bouncing to about IDR17,944 per US dollar after a sharp slide, as Bank Indonesia’s surprise rate hike and stabilisation steps boosted market confidence. Investor Confidence: Reuters reports policy moves in the past day aim to stop a deeper investor-confidence crisis, with expectations of further tightening. Sovereign Funding: Danantara, Indonesia’s new sovereign wealth fund, has started a debut global US dollar bond sale (5- and 10-year notes), testing appetite as policymakers scramble to reassure markets. Halal Push: Indonesia’s Mandatory Halal policy for 2026 is set to expand BPJPH certification, with SEHATI support for micro and small firms. Industry & Jobs: Indonesia plans a national car hub in West Java targeting 300,000 vehicles a year. Food Security: The agriculture ministry says it will build 100 Bulog rice warehouses to preserve quality for up to two years. Energy & Climate: A Zurich Insurance report warns ASEAN renewable projects face major climate risks by 2030, with billions needed for resilience. Social Oversight: Outcry over alleged toddler abuse at an Indonesian daycare has forced promises of tighter supervision. Security Case: A court in Nigeria struck out charges against 24 foreign hackers after prosecution delays.

Fuel Shock in Indonesia: Pertamina lifted Pertamax prices by 32% to Rp16,250/litre (and Pertamax Green to Rp17,000), as Bank Indonesia raised rates again to steady the rupiah—raising fresh cost-of-living worries. Rupiah Rescue Effort: Bank Indonesia’s surprise 25 bps hike to 5.5% follows a prior off-cycle move, with investors still uneasy over fiscal and policy signals. Nickel Outlook: Analysts warn a stock overhang may cap nickel recovery hopes as inventories remain heavy. AI’s Resource Cost: A UN report flags data centres’ growing electricity and water demand, underscoring environmental pressure as AI use scales. Firefly Tourism in Bali: A conservation-led firefly spot in Taro is drawing visitors with night-sky experiences tied to local culture and ecology. Indonesia–Malaysia Travel Boost: A new Pekanbaru–Melaka flight route is expected to lift tourism and business links. Regional Security & Trade: Op-eds weigh the Korean Peninsula security dilemma and Sri Lanka’s push to join RCEP. World Cup Build-Up: Indonesia’s World Cup presence is noted amid the wider 48-team roster rollout.

Military Justice: Four Indonesian soldiers convicted over an acid attack on human rights activist Andrie Yunus were sentenced to up to three years by a military court in Jakarta, with Amnesty calling the trial a “whitewash.” Regional Diplomacy: Indonesia urged ASEAN to uphold unity and centrality amid geopolitical tensions, as Foreign Minister Sugiono spoke at the ASEAN Future Forum in Hanoi. Economy & Markets: Bank Indonesia’s surprise rate hike to defend the rupiah highlights investor worries about Indonesia’s policy direction and central bank independence. Trade & Corruption Probe: Authorities questioned Maybank staff over suspected palm oil export price manipulation tied to the Salim Group, as part of a wider investigation into major producers. Food & Housing: The government will keep budget efficiency measures for 2027 and expand Prabowo’s home renovation program, while school revitalization work continues in Bogor. Public Safety: A teen’s drowning at Apparalang in South Sulawesi sparked soul-searching about the bystander effect. Philippines Quake Spillover: Aftershocks are complicating recovery from the 7.8 Mindanao earthquake that killed dozens and displaced tens of thousands.

Bank Indonesia Rate Shock: Indonesia’s central bank unexpectedly hiked its lending rate by 25 bps to 5.5% to steady the rupiah, with stocks jumping and the currency slipping back under 18,000 per US dollar. Free Meals Overhaul: President Prabowo’s shake-up of the National Nutrition Agency (BGN) replaces top leadership after an evaluation flagged SOP, governance, and food-quality lapses, as the MBG program targets children, toddlers, and pregnant and breastfeeding mothers. MSME Law Push: The MSMEs minister is urging revisions to Law No. 20/2008 to better protect, empower, and boost competitiveness for Indonesia’s tens of millions of small businesses. Digital + Green Cooperation: Singapore and Indonesia reaffirmed plans to deepen ties on digital infrastructure, green energy, and industrial cooperation, including a joint BBK technology study. Philippines Quake Ripple: A 7.8 Mindanao earthquake has killed at least 35 and injured hundreds, prompting international condolences and relief efforts across the region. Coral Reef Damage Study: Research in Indonesia and the Philippines finds scuba divers frequently make reef contact, with about 41% causing visible damage—mostly unintentional. Retail Expansion Watch: Marks & Spencer signed a franchise deal via MAP to reopen in the Philippines later this year.

Philippines Quake Response: A powerful 7.8 earthquake off Mindanao has killed at least 37 people, injured hundreds, and displaced more than 20,000 as rescuers race through collapsed buildings in General Santos and Sarangani; hospitals are operating outside damaged wards and tsunami warnings were later lifted. Indonesia-Philippines Links: Indonesia lifted its tsunami warning after the quake, while tremors were felt across parts of Sulawesi, underscoring the region-wide risk. Social Forestry Push: Indonesia’s Deputy Forestry Minister Rohmat Marzuki urged better social forestry management through agroforestry, aiming to boost incomes while keeping forests sustainable, with millions of hectares already allocated to community groups. Manufacturing Exports Goal: Indonesia’s Industry Ministry wants manufacturing’s export share to rise from 20% to 30% to strengthen resilience and global reach. Preventive Health Tech: Actxa and LIF launched a smart ring partnership in Indonesia, debuting the LIF Core Smart Ring with AI Glucose Scan to expand preventive health adoption. Digital Economy Cost: Indonesia’s communications ministry says cheaper, more accessible internet is key to digital growth and is expanding fiber, BTS, and LEO satellite coverage. Tourism & Culture: The Tourism Ministry backs the BRI Jazz Gunung Series to boost mountain destinations, local MSMEs, and environmental sustainability. Copyright Enforcement: Korea hosted a joint meeting in Seoul to coordinate crackdowns on overseas copyright infringement of Korean content, with Indonesia among participating countries. Travel Awards: Tripadvisor named Indonesia’s G.H. Universal Hotel in Bandung the world’s No. 1 top hotel in its 2026 Travelers’ Choice awards.

Philippines Quake Fallout: A 7.8-magnitude earthquake off Mindanao has killed at least 32 people and injured more than 200, with tsunami warnings briefly issued across the region before being lifted; Indonesia also felt the tremors, and aftershocks are adding to the disruption. Indonesia Digital Child Safety: Indonesia’s Communication and Digital Affairs Minister Meutya Hafid urged parents to watch four online risks for children—strangers, harmful content, digital addiction, and health impacts—under a new child-protection framework for platforms. Health Tourism Boost: A new Pekanbaru–Melaka flight route starts June 10, with Wings Air operating three weekly trips, aiming to bring more Indonesians for medical treatment. Sustainability & Oceans: Norway and ASEAN partners launched a blue-economy push in Jakarta for sustainable aquaculture and fisheries, while World Oceans Day updates show marine protected areas have reached 10% coverage. Business & Retail: Marks & Spencer is shifting its Philippines operations to Indonesian retail group MAP via a new franchise deal, with the first store planned for later this year.