AGP Executive Report

Carbon Markets: Indonesia’s forestry carbon trading reforms (new Presidential Regulation 110/2025) are said to have restored investor confidence by letting project owners register via international registries or the SRN-PPI system. Food Security: The agriculture ministry plans a bigger budget for Papua to boost priority crops like cassava and strengthen farmers’ welfare and national food self-sufficiency. Child Safety in Schools: Religious Affairs Minister Nasaruddin Umar launched the RANA movement to make pesantren and madrasah safer, pushing prevention, reporting, and cross-agency action against violence. Drug Raid Fallout: Police arrested nine suspects over the killing of three anti-drug officers in Central Kalimantan during a raid, with more names on a wanted list. Digital & Internet Governance: Indonesia backs ICANN87 in Bali (Oct 17–22) to support global internet governance coordination. Heritage: Muna’s Liangkabori and Liang Metanduno caves were designated national heritage after research recognized the world’s oldest non-figurative cave painting. Energy & Industry: Govt eyes Nvidia and other big tech partners to expand data center capacity by 1.3 GW, while SAIL and Krakatau Steel explore a stainless steel JV for 0.5–1 million tonnes. Sports: Indonesia swept speed climbing at Chamonix, with Desak Made Rita winning women’s gold and Veddriq Leonardo taking men’s title.

Indonesia–Qatar Defence: Indonesia and Qatar signed a Statement of Intent on defence cooperation in Jakarta, paving the way for a future Defence Cooperation Agreement. Earthquake Alert: A 5.2-magnitude quake struck the Talaud Islands at about 17:49 GMT, with a shallow 10 km depth reported by GFZ. Tech in Daily Life: AEON Mall in Indonesia rolled out an automatic trolley-on-escalator system, letting shoppers ride carts between levels without pushing. Film & Culture: Indonesian virtual-production horror “Whispers of Fatimah” set a September theatrical release, using LED volumetric stages for its cursed-village story. Wildlife Conservation: In Borneo, locals can earn small cash rewards for verified wildlife photos via a mobile app, boosting sightings data and community protection. Corruption Shake-up: Indonesia’s top special crimes prosecutor Febrie Adriansyah resigned after a police raid found gold and cash at his home; acting leadership was appointed to keep cases moving. Energy & Industry: The government tightened oversight on coal Domestic Market Obligation to protect power supply, while BPOM said adaptive rules are key for faster, safer advanced therapies. Halal Push: Indonesia promoted halal economic cooperation through the D-8 Halal Expo in Jakarta, aiming to expand supply chains and trade among member states.

Anti-Corruption Shake-Up: Indonesia’s top special-crimes prosecutor Febrie Adriansyah resigned after police raids seized 74kg of gold and over $20m in cash, amid probes tied to coal procurement and state insurer scandals; the Attorney General named Rudi Margono as acting successor. Halal Trade Push: Indonesia and Morocco discussed practical steps to implement their halal certification mutual recognition deal, aiming to expand market access and grow the global halal ecosystem. B50 Biodiesel Rollout: Officials say the mandatory B50 blend could cut diesel imports and save up to Rp177 trillion in foreign exchange, while critics warn it may squeeze CPO exports and hurt earnings. Forestry Carbon Credits: Indonesia is set to issue its first forestry carbon credits under a national framework using Verra standards, with projects tied to peatland restoration and conservation. Digital Transformation with Culture: Indonesia urged countries at WSIS to measure digital progress by public welfare and cultural preservation, not just economic gains. Sports Tourism in Mandalika: A new padel facility was inaugurated to boost sports tourism in the Mandalika SEZ. North Natuna Sea Patrols: Indonesia plans 10 new patrol vessels and expanded Batam surveillance docks to strengthen anti-IUU fishing enforcement. PM Modi’s Diplomacy: Modi wrapped up a three-nation tour, with Indonesia-Australia-New Zealand talks delivering agreements and elevating ties with New Zealand to a Strategic Partnership.

Palm Oil Energy Push: Indonesia launched the mandatory B50 biodiesel program in Karawang, requiring diesel with 50% palm-oil biodiesel—aimed at cutting fossil imports and boosting energy security. Power Supply Watch: To prevent blackouts, the government approved extra coal quotas for state utility PLN, with additional supply targeted for July through year-end. Jobs & Tech Tension: Indonesia met Tokopedia and TikTok after downsizing rumors sparked fears of mass layoffs, as the tech sector braces for restructuring. Rural Economy Drive: The government is building up to 40,000 village cooperatives (KDMP) by year-end, with inaugurations planned in August. Free Meals Under Scrutiny: President Prabowo ordered tighter oversight of the MBG free-nutritious-meal kitchens, warning against theft and irregular portion sizes. Trade Strategy: The Ministry of Trade outlined three export boosts—using existing FTAs, helping MSMEs compete, and diversifying markets. Maritime & Defense Deals: Indonesia and Russia discussed maritime tech partnership; meanwhile, Indonesia’s defense industry push continues under Prabowo’s “don’t sell to foreigners” stance. Environment & Health: A landfill fire near Jakarta was finally extinguished after days of hazardous smoke, following hundreds of respiratory illness cases.

Rural Economy Push: Indonesia is on track to expand Red and White Village Cooperatives (KDMP) from about 30,000 to 40,000 by year-end, with President Prabowo set to inaugurate ready cooperatives in August. Elephant Protection Decree: Prabowo has issued an instruction to protect Sumatran and Bornean elephants, requiring wildlife corridors and conservation areas while coordinating development across nine ministries and local governments. Ports & Trade: Indonesia opened an expanded container terminal at Patimban, with Japan backing the project via about $1.6 billion in loans, aiming to boost imports and exports. Biodiesel Shift: The B50 biodiesel mandate is now in force, positioning Indonesia as the first country to use a 50% palm-based diesel blend; officials say it could cut fuel imports and save foreign exchange, while analysts warn it may pressure vegoil freight rates through 2027. Wildlife Trafficking Case: Authorities charged a suspect and pursue others after seizing about 3 tons of pangolin scales worth around $10 million at Tanjung Priok, likely involving thousands of dead pangolins. Energy & Climate Moves: Prabowo also launched a plan to develop 100 GW of solar power in two years, while the environment ministry set a 2027 deadline to end open dumping landfill practices. Education Tech Training: The education ministry will roll out deep learning, coding, and AI training for 361,000 teachers in 2026, using subject-based approaches. Jakarta Landfill Fire: A major landfill fire near Jakarta has been extinguished after more than a week, with evacuees returning home. Indonesia-India Spotlight: Indonesia targets 750,000–820,000 Indian visitors in 2026, boosted by PM Modi’s recent visit and expanded promotions beyond Bali.

Indo-Pacific Defense Deal: India’s PM Narendra Modi’s three-nation tour spotlighted a major BrahMos missile agreement with Indonesia, with BJP calling it a landmark “Make in India” defence export win. Heritage Diplomacy: Indonesia’s Prambanan Temple conservation got a boost as ASI said it will lead UNESCO-listed restoration under an India-Indonesia collaborative initiative launched by Modi and President Prabowo. Energy Independence: Indonesia rolled out the mandatory B50 biodiesel blend, ending diesel imports, and plans to convert surplus diesel into jet fuel to stop jet fuel imports by end-2026. Carbon Market Push: Indonesia launched a Carbon Unit Registration System to speed carbon trading, issuing permits for forest and community projects. Climate & Tech Finance: Google, McKinsey and Tencent signed deals for nature-based carbon removals from Thryve.Earth’s Sulawesi rainforest restoration. Public Health Crisis: A landfill fire near Jakarta entered its second week, with hundreds reporting breathing problems from toxic smoke. Digital & Telecom Planning: Indonesia says it needs new spectrum for future 6G networks, with new frequency releases required. Business & Society: Indonesia’s free meals programme faces corruption and mismanagement allegations, while MSME policy urges modern retail and small stores to coexist.

Prambanan Restoration Boost: Indonesia’s Archaeological Survey of India says it will conserve UNESCO-listed Prambanan Temple under the India-Indonesia collaborative initiative launched by PM Narendra Modi and President Prabowo. New Capital Push: Indonesia is building Nusantara in Borneo to replace sinking, flood-prone Jakarta, where land subsidence tied to groundwater use has made “starting over” the plan. Energy & Palm Oil: Indonesia’s mandatory B50 biodiesel rollout has stopped diesel imports, while uncertainty over B50 allocation continues to weigh on palm oil prices. Defense Deal Momentum: Lemhannas says Indonesia’s BrahMos cruise missile cooperation with India can drive technology transfer and strengthen the domestic defense industry. Bali Waste-to-Energy: Construction has begun on Bali’s first waste-to-energy plant, aiming to cut landfill waste and support tourism with cleaner power. Digital Economy Watch: Indonesia warns 22 unregistered platform operators to register as Electronic System Operators, ahead of enforcement. Health & Environment: Indonesia released 21 rehabilitated green sea turtles back into Bali waters after a smuggling bust. Markets: Indonesia’s IPO pipeline stays active, with healthcare IPO Prodia Diagnostic Line debuting strongly on the IDX.

Child Trafficking Trial: A high-profile adoption case in West Java is putting Indonesia’s child trafficking problem under the spotlight, with authorities weighing whether children allegedly trafficked into Singapore should be returned after years abroad. Global AI Governance: Indonesia pushed for people-centred, inclusive UN AI rules in Geneva, stressing child protection and safer online platforms as AI standards take shape. Democracy Under Pressure: A report warns Indonesia’s army expansion is tightening pressure on activists, with surveillance and intimidation rising alongside legal changes that blur civilian-military lines. Free Meals Scandal: Prabowo’s “Free Nutritious Meals” program is facing corruption and waste allegations, after earlier arrests tied to procurement fraud. Inflation & Food Prices: The rupiah’s slide is feeding higher cooking oil and staple prices, squeezing small businesses and households. Indonesia-India Diplomacy: PM Modi’s Indonesia visit delivered major defence and digital pacts, including BrahMos/Astra missile cooperation, UPI-QRIS payment integration plans, and an ASI-led Prambanan restoration project. Environment: A landfill fire near Jakarta has burned for over a week, sending toxic smoke and triggering respiratory illness fears. Trade & Markets: A WTO panel largely rejected Indonesia’s EU fatty acid challenge, while Indonesia’s online MSME matching is generating tens of millions in export value.

India-Indonesia Defence & Tech Push: PM Narendra Modi’s Jakarta visit with President Prabowo delivered major pacts, including Indonesia’s planned acquisition of India’s BrahMos supersonic cruise missiles and cooperation on air-to-air missiles, plus maritime safety coordination and critical minerals ties. Cultural Diplomacy at Prambanan: Modi and Prabowo inaugurated UNESCO Prambanan Temple restoration and pledged completion before 2029, with Prabowo calling the Ramayana reliefs proof of 1,000+ years of shared heritage. Digital Payments Link: Leaders backed progress on linking India’s UPI with Indonesia’s payment system via a Cross-Border QR linkage, aimed at easier travel and MSME transactions. Market Watch: S&P Dow Jones warned Indonesia faces a potential downgrade risk tied to transparency concerns, echoing MSCI’s review. Waste-to-Energy in Bali (and beyond): Danantara broke ground on Bali’s first waste-to-energy plant, with plans to expand waste-to-electricity projects nationwide. Energy Security: PLN secured extra coal supplies for Java after earlier shortages triggered rolling blackouts. Space & AI Governance: BRIN set a January 2027 launch for the NEO-1 Earth observation satellite, while Indonesia urged people-centered AI governance at a UN forum. Trade Strategy: Indonesia’s Trade Ministry said it will shift toward high-value-added exports and services, not just commodities. Halal Trade Boost: Jakarta launched the D-8 Halal Expo targeting $500B intra-bloc goals by 2030. Corporate & Finance Moves: Xendit integrated Philippine payments firm Dragonpay to deepen regional payments reach. Climate Credits Deal: Tencent agreed to buy carbon removal credits generated from an agroforestry project in Indonesia’s Sulawesi. Local Health Alert: A landfill fire near Jakarta has burned for days, sending toxic smoke and triggering respiratory complaints.

India–Indonesia Defence & Trade Push: PM Narendra Modi’s Jakarta visit is driving a major upgrade in ties with President Prabowo Subianto, with India agreeing to supply BrahMos supersonic cruise missiles and Astra air-to-air missiles, alongside 14 signed pacts covering defence, maritime security, critical minerals, telecoms, space, health, education and disaster management. Digital Payments & Election Tech: The two sides also moved on cooperation that includes support for Indonesia-specific Electronic Voting Machines and plans to link India’s UPI with Indonesia’s payment systems. Sabang Port & Indo-Pacific Strategy: Leaders reaffirmed plans to jointly develop Sabang Port near the Strait of Malacca, framing it as a strategic maritime link for regional connectivity. Highest Honour Moment: Prabowo awarded Modi Indonesia’s top civilian medal, Bintang Adipurna, while joking that he “copied” Modi’s programmes—prompting Modi’s “development, not expansionism” message in parliament. Environment: Indonesia’s mangrove rehabilitation push aims to restore degraded coastal ecosystems and boost resilience. Earthquake Watch: A 5.6 quake struck the Sunda Strait, according to GFZ.

India-Indonesia “Golden Chapter” Talks: PM Narendra Modi and President Prabowo Subianto reaffirmed support for a Two-State solution for Palestine and pushed a broader Indo-Pacific agenda. Defence & Maritime Security: Jakarta and New Delhi agreed on cooperation tied to BrahMos and air-to-air missile work, plus coast-guard collaboration for maritime safety in the Indian Ocean. Digital Payments: Modi announced UPI will integrate with Indonesia’s payment system, with cross-border QR links to make travel and trade easier. Education & Culture: Prabowo backed an IIM campus in Indonesia, while Modi pledged Prambanan Temple conservation and a Tagore-Dewantara Year for cultural diplomacy. Top Honour: Modi received Indonesia’s highest civilian award, Bintang Adipurna, drawing criticism from India’s Congress. Food Security: India will supply 100 tonnes of wheat seeds to Indonesia and share farming and agrotechnology know-how.

India-Indonesia Diplomacy: PM Narendra Modi arrived in Jakarta for a six-day three-nation tour, with talks expected to cover defence, maritime security and piracy, critical minerals, food security, and digital cooperation as Indonesia readies to deepen its Act East ties with India. Green Finance Push: Indonesia launched the Indonesia Forestry Carbon Centre and says its Carbon Economic Value (NEK) scheme could attract up to US$5.8 billion in green investment, with the Carbon Unit Registration System (SERUK) set for July 9. Digital Economy & Connectivity: Grab says its GrabMerchant AI assistant has topped 1 million merchant interactions in under five months, while Indosat spun off its fiber unit into Infra Fiber Teknologi (IFT) to build an open-access network. Tourism & Travel: TransNusa announced new routes, including Jakarta–Bangkok from August and a Bali–Wakatobi link, as Bali tightens visa rules for influencers and content creators. Regional Security: The IMO urged action over Somali pirate ransom cases, including a tanker crew that includes Indonesian nationals.

Indo-Pacific Diplomacy: PM Narendra Modi arrived in Jakarta for the first leg of a three-nation tour, greeted by President Prabowo Subianto and escorted by Indonesian fighter jets, with talks expected to deepen the India-Indonesia Comprehensive Strategic Partnership and expand cooperation across trade, defence, energy and the diaspora. Maritime Security: Indonesia and Singapore reaffirmed that the Strait of Malacca will stay “open and free” and “accessible” for all, pledging coordination with Malaysia and Thailand as regional shipping faces new pressures. Green Economy: Indonesia’s carbon trading push gained momentum as the Forestry Ministry said the scheme’s value could reach about Rp5 trillion, while carbon trading is being expanded through social forestry and a carbon unit registration system is set for launch on July 9. Energy Links: Prabowo appointed Danantara to implement the cross-border electricity deal with Singapore, targeting at least 3.4 GW of power exports by 2035. Waste-to-Energy Plan: Indonesia aims to end open dumping by 2028, with 50% eliminated by 2027, supported by waste-to-energy incineration projects. Business & Industry: Indonesia Energy Corporation started operations on its K-29 well in the Kruh Block, with drilling at the WK-5 wellsite planned next. Sports & Tourism: Indonesia hosts major international padel events in Jakarta, while May 2026 international arrivals rose to 1.38 million, driven by APAC travel.

West Papua Tensions: Solomon Islands PM Matthew Wale urged Indonesia to cool tensions in West Papua through demilitarisation steps and an inclusive, credible dialogue, warning that rising violence and the killing of a US pilot must not be met with more militarisation. Indonesia-India Ties: Ahead of PM Modi’s July 6-8 visit, Indonesia is looking to India for technology and policy models, including linking India’s UPI with Indonesia’s QRIS to make payments easier for tourists. BRICS Women Track: India will host BRICS Women Working Group talks in Kochi on July 6-7, focusing on women’s leadership, digital/financial inclusion, entrepreneurship, and climate-food security roles. Papua Security Update: Indonesian authorities recovered the body of an American pilot killed in Papua after separatist fighters attacked and burned a civilian aircraft, as Indonesia investigates what happened. Aviation Link: Oman’s SalamAir launched its first direct Muscat–Medan route, boosting travel and Umrah connections. Air Quality Alert: Washington, D.C. issued “very unhealthy” air warnings tied to July 4 fireworks, urging sensitive groups to limit outdoor exposure.

Social Media Rules: Indonesia says 3 in 5 children falsify their age to access social platforms, as authorities push new child-protection requirements and urge platforms to improve age checks without violating data rules. Free Meals Policy: The government is still assessing whether school canteens will join the MBG free nutritious meals program, while aid will target only students most in need, not everyone. Food Security in Papua: Bulog is expanding rice procurement in South Papua to stabilize supplies and give farmers fair prices, as Merauke’s food development area grows. Digital Push: Indonesia is ramping up digital talent and internet access, aiming for a national average speed of 100 Mbps in about two years. SIM Registration: Telecom operators back biometric SIM registration to curb online fraud, but want lower facial-verification fees to keep services affordable. Tourism Safety: Bali visitors are warning of a rise in pickpocketing targeting tourists, especially phone snatching and jewelry grabs. Health Equity: Indonesia calls for better access for TB-HIV vulnerable groups, citing stigma and fragmented services.

Papua Security: An American pilot, Nicholas F. Gosselin, was shot dead after landing in remote Highland Papua on July 2, and rebels then set his plane on fire; troops recovered his body and officials say it will be handed to the U.S. Embassy in Jakarta. Anti-Smuggling Crackdown: Malaysian police arrested three Indonesians in Kuching over suspected contraband alcohol trafficking, seizing 76,367 cartons of “1602 Life Beer” plus forklifts during a raid. El Niño Preparedness: Indonesia’s environment ministry warned local governments to brace for landfill fires as extreme weather looms, citing El Niño alerts after a long-burning blaze in Tangerang. Jakarta Air Quality: Jakarta launched an early warning system for residents ahead of worsening air conditions. Online Gambling Spam: Indonesia and Meta set up a joint effort to tackle gambling spam, with officials urging stronger enforcement. Diplomacy: Indonesia’s envoy attended Ayatollah Khamenei’s Tehran funeral, representing the government at official prayers. World Cup Buzz: England faced a hostile reception in Mexico City as the Round of 16 kicked off.