AGP Executive Report

Digital Payments: Bank Indonesia launched the Indonesian Credit Card (KKI) for individuals and businesses, letting users pay via QRIS Scan or QRIS Tap, with eight banks already issuing cards and QRIS reaching 65.77 million users and 44.86 million merchants. Disaster Response: A 7.7 quake off Flores has killed 68 people, with 213 injured and 1,576 aftershocks recorded; nearly 10,000 people remain displaced as power and telecom recovery in affected areas continues. NTT Recovery on the Ground: The government is ramping up relief, including public kitchens in Nagekeo preparing up to 3,000 meals daily, while infrastructure repairs and search-and-rescue operations stay active. Independence Day Amid Grief: Prabowo and Gibran attended a Monas night carnival, while Indonesians held prayers and moments of silence for quake victims; Pope Leo XIV also sent condolences. Transport & Aid Logistics: Indonesia sent 50 tons of relief supplies to NTT by sea as roads and landslides complicate delivery. Tech & Security: TyrAds received ISO 27001:2022 certification for information security management. Energy Policy: The Rp5 million e-motorcycle incentive is on hold pending a Finance Ministry regulation.

Earthquake Response in Flores: Indonesia’s deadly 7.7 quake in East Nusa Tenggara has killed 53, with more than 130 injured and about 12,800 people still displaced, many sleeping outdoors as aftershocks rattle Flores and landslides block roads; rescuers are combing collapsed buildings while aid—tents, food, medical supplies—moves in, and an emergency response is in place. New Tremor Alerts: A separate 5.8 quake shook Flores early Monday, adding to fears even as tsunami warnings were lifted. Independence Day Amid Disaster: Indonesia marked its 81st Independence Day while ministers and officials coordinated ceremonies alongside quake relief, underscoring how disaster response is running in parallel with national events. Child Safety and Education: World Vision and Save the Children warn that thousands of children face disrupted schooling and heightened trauma after damage to schools and healthcare facilities. Digital Finance Push: Bank Indonesia launched a domestic credit card system and expanded QRIS fee relief to boost Indonesia’s digital payments ecosystem. Regional Security: Eight Arab and Islamic countries, including Indonesia, condemned Israel’s rejection of a US Gaza plan, saying it undermines efforts for a lasting peace. Drug Smuggling Case: A Malaysian pilot detained in Indonesia is believed to have smuggled drugs to multiple countries since 2024, using his flight schedule.

Disaster Response: Indonesia’s Flores earthquake toll climbed to 53 dead with 135 injured as rescuers battled landslides, damaged roads, and nearly 1,000 aftershocks; about 5,000 people spent the night outdoors or in shelters, while authorities kept updating casualty lists and said there were no missing persons reported. Emergency Measures: The government activated a 14-day emergency response in East Nusa Tenggara through Aug. 28, aiming to speed up search, evacuation, relief distribution, and recovery. Aid and Logistics: Relief efforts ramped up with airlifts of emergency supplies and restoration work for fuel, LPG, and power, though communications and access to isolated areas remain major hurdles. Regional Stability: Separately, Indonesia’s security ministry urged peace in Aceh and stability in Papua, warning against violence and disrespect toward state symbols. Tech and Industry: In Yogyakarta, NVIDIA, Indosat, and UGM launched the country’s first university-based AI technology center, while VinFast and Gowa Motor Group signed a JV plan to expand EV dealerships nationwide.

Earthquake Disaster: A 7.7-magnitude quake struck off Flores in East Nusa Tenggara, killing at least 47 and injuring dozens, with landslides blocking roads and slowing rescue access; thousands evacuated and many spent the night outdoors as aftershocks continued. Relief & Evacuation: Authorities say more than 900 homes were destroyed or damaged, hundreds of public facilities hit, and aid shipments are moving in while search teams dig through rubble. Tsunami Watch: Minor tsunami waves were recorded after the quake, but warnings were later lifted as sea monitoring showed no major threat. New Shocks in the Region: A 6.4 quake hit North Sumatra hours later, and a 6.1 quake was also reported on the Minahassa Peninsula, with tremors felt in parts of Malaysia’s Sabah and Penang. Local Impact: Tourism areas in NTT were reported under control, with tourists evacuated and flights resumed on limited basis. Other Indonesia News: Papua Highlands funds 500 students for higher education; BRIN and a Bangka botanical garden study and protect an endangered forest rambutan.

Disaster Response: Indonesia’s Flores Island was hit by a deadly 7.7-magnitude earthquake early Saturday, with the death toll rising to at least 38 and later reports pushing it higher as rescuers search rubble where landslides and damaged roads are slowing access; BNPB said about 2,000 people evacuated on their own, while a tsunami warning was issued then lifted after monitoring showed no major sea-level changes. Aftershocks & Follow-up Quakes: Hours later, a 6.4-magnitude earthquake struck North Sumatra; authorities reported no tsunami threat and no immediate damage reports. International Aid & Travel Alerts: The EU offered satellite support for search-and-rescue, and the U.S. urged Americans to avoid coastal areas and seek secure shelter in the affected region. Human Interest: Miss Earth Indonesia 2025 Putri Andriani Juficha died at 25; her pageant organization confirmed the death but did not disclose a cause. Conservation Note: A rare “deer-pig” babirusa was born at the UK’s Chester Zoo, offering hope for a species found only on four Indonesian islands.

Earthquake & Tsunami Response: A 7.7-magnitude earthquake struck off Flores in East Nusa Tenggara early Saturday, triggering panic, building damage, and a tsunami warning that was later lifted after sea monitoring showed no dangerous rise. Casualties & Damage: Authorities confirmed at least two deaths (reported in Sikka and Maumere areas) with additional injuries, while aftershocks continued and residents were told to avoid damaged buildings. Evacuations & Public Guidance: BMKG warned of possible tsunami waves (up to about 3 meters in modeling) and urged coastal communities to move inland or to higher ground; BNPB and Basarnas stepped up monitoring and rescue operations. Government Coordination: Indonesia’s government said it coordinated with BMKG, BNPB, and Basarnas to keep emergency readiness high as assessments continue. Regional Safety Checks: Australia’s tsunami warning center said there was no tsunami threat to its mainland, islands, or territories. Defense/Geopolitics: Separately, China sent J-10C fighters to Thailand for Falcon Strike 2026 training with Thai Gripens, underscoring ongoing regional military drills.

2027 Budget Push: President Prabowo Subianto submitted Indonesia’s 2027 State Budget bill, targeting 6% growth and a 2.40% deficit, with spending rising to Rp4.09 quadrillion and revenue projected at Rp3.43 quadrillion. The plan backs eight national priorities including food sovereignty, energy and water self-reliance, education, health, downstreaming/industrialisation, infrastructure, housing and disaster response. Education Funding: The government earmarked Rp820.9 trillion for education in 2027, including support for the Free Nutritious Meals program and school renovation. Finance Hub: Prabowo also announced an Indonesia Financial Center in Jakarta with a planned expansion to Bali, aiming to boost investment, fintech, arbitration and commercial dispute resolution. Commodities Pricing: Indonesia targets a Mineral and Commodities Exchange to start Jan 1, 2027, so the country can play a bigger role in setting export values. Public Health Alarm: More than 250 children were hospitalized in North Sumatra after suspected poisoning linked to the free school meals program. EV Momentum: At GIIAS 2026, Wuling Aira EV drove most orders, while Leapmotor B10 and C10 launched in Indonesia with local assembly. Trade Tensions: The US accused China-linked exporters of routing goods through 40+ countries to evade tariffs, with Indonesia named among economies in the alleged network.

Haze Crisis in Sarawak: Serian District Council chief Dato Peter Minos says the town’s mountain view has vanished in worsening haze, with the Air Pollutant Index hitting 202 (“very unhealthy”). Schools have been ordered closed as residents blame smoke blowing in from West Kalimantan, Indonesia, and question why open burning by large oil palm estates isn’t stopped. EV Push: President Prabowo says Indonesia aims to start mass production of homegrown electric cars by 2028 at a West Java factory complex, alongside the national electric motorcycle program and possible trade-in and subsidy schemes. Energy Overhaul: Prabowo orders state utility PLN to shut 13 GW of diesel-fired power plants and replace them with non-fossil energy to cut fuel import dependence. Finance & Markets: Indonesia’s IDX launched Shariah-compliant gold ETFs, with officials saying they can open a new investment channel for insurers. Indonesian Politics: Prabowo will deliver his annual speech and present the 2027 state budget draft to parliament as Independence Day commemorations ramp up. Regional Security: Indonesia backs a push for advance notice of ballistic missile tests to reduce miscalculation risks. Wildfire Fallout: Indonesia’s haze and wildfire impacts continue to spill across borders as dry-season conditions worsen.

EV Push: President Prabowo launched Molinas, Indonesia’s national electric motorcycle program, urging local makers to scale from 20,000 units to 2 million and promising support like lower financing rates, fewer down payments, and trade-in schemes. Immigration & Travel: Indonesia is considering a Visa on Arrival fee hike with a two-tier system—e-VOA before departure at 750,000 rupiah and airport VOA at 1 million—up from the current 500,000 rupiah. Trade & MSMEs: Indonesia says MSMEs logged $251 million in export transactions in H1 2026, beating the full-year 2025 total, with many first-time exporters matched to overseas buyers. Infrastructure Self-Reliance: New rules expand the use of Buton domestic asphalt for toll roads (2026–2029), with phased targets to cut imports. Security & Diplomacy: Indonesia condemned the Bab el-Mandeb ship attack, where one Indonesian is missing; separate reports also say Israel/US deny a deal over a Hezbollah disarmament verification shortlist that reportedly included Indonesia. Climate Watch: El Niño is strengthening toward a “very strong” event, while Indonesia’s wildfires and haze risks keep rising across the region. Index Shock: MSCI’s August review removed GoTo and CPIN from its flagship Global Standard Index.

Ferry Disaster in Lombok Strait: A passenger ferry, KM Putri Yasmin, caught fire off Lombok after leaving Bali, killing 1 and evacuating 172 people; rescue teams say the manifest is still being verified and the cause is unknown. Red Sea Tensions: The Houthis claimed strikes on a Saudi military equipment transport ship in Bab al-Mandab and attacks on Saudi-backed sites in Yemen, with no immediate independent confirmation. Finance Talks: Indonesia’s Vice Minister of Finance Juda Agung met India’s Nirmala Sitharaman in Jaipur to discuss financial sector development and closer cooperation in international financial services and local-currency transactions. Conservation Court Challenge: Indigenous groups filed a new petition at Indonesia’s Constitutional Court, arguing parts of a 2024 conservation law could let the state designate ancestral lands as conservation areas without community consent. Public Health Concern: A study found microplastics in sea salt sold across Lombok markets, though researchers say health risk from salt intake appears low. Tech Upgrade: Sobot announced an upgrade to its AI agents, shifting from scripted answering to more adaptive “getting things done” workflows. Independence-Day LGBTQIA+ Warning: Indonesia’s top Islamic body warned against cross-dressing traditions tied to Independence Day celebrations, calling the LGBTQIA+ community a “Lesbian Gay Sodomy and Obscenity Movement.” Market Watch: GoTo is set to be removed from MSCI’s Indonesia index over liquidity concerns, another hit for local equities.

Maritime Tensions: Taiwan condemned China-Indonesia naval drills east of the island, saying Beijing is trying to create a “false impression” of jurisdiction, as Indonesia’s navy has not yet commented. Wildfire & Haze Crisis: Indonesia is battling fast-spreading wildfires, with smoke affecting neighboring countries and forcing school suspensions in haze-hit areas. Bali Ferry Fire: A passenger ferry in the Lombok Strait caught fire early Wednesday; rescue teams evacuated more than 100 people, with reports citing 1 death and dozens still being assisted. Energy & Industry: Baker Hughes won a subsea contract for Indonesia’s Kutei Northern Hub, supporting natural gas and LNG output. Economy & Policy: The government plans to reallocate part of Danantara SOE profits into the State Budget to build fiscal reserves and help manage state debt. Trade & Food Prices: Indonesia urged beef importers to speed up quota realization to curb rising domestic prices.

Ferry Fire in Bali-Lombok: A passenger ferry caught fire in the Lombok Strait early Wednesday, with evacuations underway for about 114 passengers and 17 crew; authorities say no casualties have been reported so far, and the cause is unclear. Wildfire Response: Indonesia says it has contained Bromo Tengger Semeru hotspots after about 899 hectares were affected, with crews working to stop new spread. EV Push: The energy ministry is speeding up public EV charging station expansion to match rising EV demand. El Niño Aid: Social Affairs teams are assessing drought-hit areas and may add assistance for the poorest deciles, while regular PKH and BPNT support continues. Regional Security: China says it will hold a naval navigation exercise with Indonesia in waters east of Taiwan in mid-August, while Taiwan condemns it as dangerous. Markets & Oil: Oil and gold prices rose as investors watched U.S. inflation data and tensions around the Strait of Hormuz. Shipping Attack: Yemen’s government says Houthis carried out a double-tap strike on a cargo vessel in Bab al-Mandeb, killing at least six, including three Pakistanis and one Indonesian.

Mount Bromo Fire Update: Indonesia extended the closure of Mount Bromo’s tourism area in East Java until Aug. 15 as crews battle a blaze that has spread to about 899 hectares, with helicopters optimized for water bombing and authorities warning of new hotspots. Transboundary Haze: Sabah, Malaysia urged residents to stop open burning as smoke from Kalimantan begins affecting air quality, with Kota Kinabalu recording an Air Pollutant Index in the moderate range. Indonesia-Malaysia Drug Case: Malaysian police say a pilot detained in Indonesia over alleged drug smuggling is being questioned, with investigators tracing a wider syndicate network and checking whether an “insider” was involved. Maritime Security in the Region: Yemen’s transport ministry blamed Iran-backed Houthis for a missile attack on the Tihamah cargo ship in Bab al-Mandeb that killed four crew members, including an Indonesian, as regional shipping remains under threat. Defense Ties: Indonesia and the US held talks in Jakarta on strengthening defense cooperation, including future steps building on past joint exercises. SME Financing Push: Indonesia’s MSME ministry and OJK signed an MoU to speed up financing access for small businesses, aiming to raise MSME loan shares in bank lending. Tech Governance Question: Indonesia Technology & Innovation 2026 (INTI 2026) opened in Jakarta, spotlighting the push to grow Indonesia’s digital economy while AI rules are still being finalized.

Bank Indonesia Leadership: President Prabowo has nominated Destry Damayanti as the permanent governor, sending the formal letter to the DPR. Wildfires & Haze Risk: Indonesia is ramping up firefighting across about 107,000 hectares to curb smoke spilling into neighboring countries, as El Niño-linked dry conditions worsen. Mount Bromo Update: Authorities keep tightening access and operations around the Bromo Tengger Semeru area as new hotspots emerge and dry weather raises the risk of further spread. Aceh Drugs Bust: Aceh police say they seized 50,000 ecstasy pills, vape cartridges, and etomidate, arresting an active village chief tied to a wider distribution network. Wildlife Tragedy in Aceh: A Sumatran elephant was found dead at a palm oil plantation; veterinarians are conducting a necropsy to determine the cause. Blue Carbon Deal: Rubicon Carbon and Indonesia are moving ahead on blue carbon projects, including mangrove restoration on Java’s northern coast. Ecosystem Restoration Plan: Indonesia targets restoring 15,000 hectares of degraded ecosystems in 2026, including peatlands and mangroves. Central Papua Civilians: The TNI evacuated a villager from an OPM-affected area in Intan Jaya for further assistance. Cyber Security Warning: A deputy minister urged Indonesia to prepare for quantum-era threats, warning of “harvest now, decrypt later” risks.

Central Banking Shake-Up: Indonesia’s President Prabowo has nominated acting Bank Indonesia governor Destry Damayanti as the sole candidate for the permanent role, with the nomination letter sent to the DPR and next steps set under existing law. Wildfire & Haze Crisis: Mount Bromo remains closed as firefighters tackle new hotspots; Indonesia reports over 107,000 hectares burned, with El Niño-linked dry conditions worsening smoke that has also hit Malaysia and Singapore, while weather modification is delayed due to lack of suitable clouds. Capital Markets Push: Indonesia launched five gold ETFs on the IDX, including sharia-compliant options, aiming to deepen the bullion market and give investors a more liquid gold exposure. Defense Industry: Indonesia has started building its first domestically constructed Scorpène-class submarine at PT PAL in Surabaya, with French guidance and training planned. EV Charging Expansion: V-Green Indonesia and HKR will develop a large EV charging hub in Kemayoran, Jakarta, targeting operations in October. Transport Policy: The government is preparing a presidential rule for “ojol” (online motorcycle taxis) ahead of Aug. 17, classifying drivers as MSMEs for flexible work and incentives.

Mount Bromo Wildfire: Indonesia says the Mount Bromo fire that burned 550 hectares has been extinguished, but new hotspots have appeared near the caldera, with the park closed and firefighting crews still on alert. Maritime Security: The Indonesian Navy stepped up border patrols after seizing about 1.3 tons of ketamine, warning smugglers exploit archipelagic routes. School Safety Crackdown: Indonesia’s child protection minister urged restraint after nearly 1,000 weapons were found at a South Jakarta private school, stressing student privacy while police investigate. Earthquake Watch: A moderate 5.3 quake struck southern Sumatra; no tsunami threat was reported. Economy Update: Indonesia’s Q2 growth came in at 5.29%, but analysts warn the recovery looks uneven and still leans on government spending. Bank Indonesia Governor Race: President Prabowo has not yet sent formal BI governor nominations to parliament, with interim governor Destry Damayanti reported as a leading contender. Tourism Demand: Agoda reports Indonesia’s Independence Day long weekend travel interest has surged more than fourfold, led by Bandung, Yogyakarta and Bali. Culture Diplomacy: Indonesia’s culture minister called for stronger cultural exchange with Iran during BRICS-related talks.