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Hello reader,

The Jakarta Metro Police have officially ruled junior diplomat Arya Daru Pangayunan’s death a suicide, but their explanation may raise more questions than answers. It’s unlikely the public will be satisfied with the conclusion of this investigation.

Plus, BMKG issued an early tsunami warning in eastern Indonesia following a massive earthquake in Russia. More on those stories just below.

Cheers,

Andra

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Law/Politics

• Police claim that the mysterious death of Arya Daru Pangayunan, a 39-year-old Indonesian diplomat, was the result of suicide, not foul play. An autopsy showed he died from oxygen deprivation due to upper airway obstruction, and forensic evidence, including fingerprints and DNA on duct tape wrapped around his head, pointed solely to his involvement. No traces of poison or suspicious substances were found in his system, only common cold medication. Digital evidence revealed Arya had long struggled with suicidal thoughts, reaching out to mental health charities as early as 2013. Psychologists believe he suffered emotional burnout from his demanding role in protecting Indonesians abroad. His death ends a three-week investigation that began when his body was found in his Jakarta boarding room on July 8. Still, police haven’t officially determined Arya’s motive for taking his own life, and one wonders why he would go through such lengths to asphyxiate himself. 

• West Java police have arrested another suspect in the transnational baby trafficking syndicate that sold Indonesian infants to Singapore and successfully rescued another baby believed to be a victim. While details remain scarce pending an official release, this latest arrest adds to the 13 suspects previously detained, including recruiters, caretakers, and individuals responsible for falsifying documents and transporting the babies across regions. Authorities say the syndicate has operated since 2023, trafficking around 25 babies, some recruited while still in the womb. The babies were typically sold for IDR 10–16 million, and some suspects posed as adoptive parents to lure vulnerable families. Several perpetrators remain at large abroad. Those arrested face up to 15 years in prison under Indonesia’s child protection and anti-trafficking laws.

• The National Nutrition Agency (BGN) has issued a public apology after another mass food poisoning incident linked to the Free Nutritious Meals (MBG) program, this time in East Nusa Tenggara (NTT), where over 130 students fell ill. The agency has suspended operations of the involved food service unit and is working with BPOM, local health offices, and independent bodies to investigate. BGN spokesperson Redy Hendra Gunawan emphasized zero tolerance for negligence in food safety and cited ongoing efforts to address the crisis under food security regulations. This is not the first such incident since MBG’s launch in January 2025, with past poisoning cases tied to poor hygiene, substandard ingredients, and improper food handling. BGN vowed improvements and welcomed public criticism to prevent future lapses.

• The Ministry of Communication and Digital has announced that a presidential regulation on AI governance is set to be finalized by September 2025. Deputy Minister Nezar Patria stated that the draft will be completed by the end of July and undergo public consultation in August. The government is also collaborating with the UK to study AI policy directions, as detailed in the newly released “AI Policy Dialogue Country Report.” The report outlines foundational elements needed for AI adoption in Indonesia, key use cases, challenges, and sector-specific implications to help shape future national AI policies. 

• A female bodybuilding contest called Missglamour, held as part of the National Community Sports Festival (FORNAS) VIII 2025 in West Nusa Tenggara (NTB), has sparked public outcry, especially from religious leaders who deemed it inappropriate and contrary to local Islamic values. Although the event was held behind closed doors, critics highlighted that the revealing outfits and poses were offensive to the religious identity of Lombok, known as the "Island of a Thousand Mosques." In response, the FORNAS VIII organizing committee issued a public apology, stating that the local committee was unaware of the contest’s full details and has requested that similar events be canceled.

Business/Economy

• Lawmakers have urged the Financial Transaction Reports and Analysis Center (PPATK) to reconsider its policy of freezing bank accounts that remain inactive for three months, citing the country's worsening economic conditions. They argued that many Indonesians are not transacting simply because they have little or no money, referencing the “Rohana” (just asking) and “Rojali” (rarely buy) phenomena in shopping centers as evidence of weakened purchasing power. They warned that the policy could harm innocent citizens who may urgently need access to their limited funds but would face delays of up to 20 days due to bureaucratic procedures. Instead, they called for a more targeted approach, focusing only on accounts with suspicious activity, and cautioned that the current policy might lead to public distrust in banks and even trigger mass withdrawals if left unchecked.

• Sovereign wealth fund manager Danantara chief Rosan Roeslani revealed that the remaining 49 Boeing aircraft ordered by Garuda Indonesia won’t be delivered until 2031–2032, with only one plane delivered so far from a pre-pandemic deal involving 50 aircraft. Rosan emphasized the need for Garuda to maximize its existing fleet—many of which are grounded but still incur leasing costs—using funds from Danantara’s US$1 billion capital injection, of which IDR 6.65 trillion has already been disbursed. He outlined three directives for Garuda: reactivate grounded planes, improve daily aircraft utilization (currently only 5 hours per plane versus the ideal 12), and carry out a broader technological and service transformation. While the Boeing deal remains on the table, Rosan hinted at possible renegotiations for better terms.

• Rosan, who is also investment minister, said China remains one of Indonesia’s most active investors, with recent Chinese capital going into coconut processing facilities across several cities. One plant alone is valued at US$100 million, with more expected to follow. Rosan said that this marks a shift from Indonesia merely exporting raw coconuts to now processing them domestically before export, thanks to involvement from the world’s largest coconut processor. He said this move not only boosts the coconut industry’s value chain but also signals growing Chinese interest beyond mineral resources, expanding into high-potential sectors like agriculture and plantations.

• Starting August 1, jewelry and gold bar entrepreneurs will no longer be subject to Article 22 Income Tax (PPh Pasal 22) when selling their products to financial institutions operating bullion businesses. This is based on Regulation No. 52/2025 issued by Finance Minister Sri Mulyani on July 25. The new rule aims to provide legal certainty and ease of tax administration for gold transactions. The exemption also applies without the need for a tax exemption certificate and aligns with previous tax-free provisions for gold sales to Bank Indonesia or through regulated digital gold exchanges. 

Everything Else

• The Meteorology, Climatology, and Geophysics Agency (BMKG) has issued an early tsunami warning following a powerful magnitude 8.7 undersea earthquake off the eastern coast of Kamchatka, Russia, this morning. While the Pacific Tsunami Warning Center (PTWC) noted potential tsunami impacts across several countries including Japan, Alaska, and the Philippines, BMKG warned that parts of eastern Indonesia, from Talaud to Jayapura, could also experience minor tsunami waves (under 0.5 meters) later this evening, urging coastal residents in affected areas to stay calm and move away from the shore.

• Indonesia fell short in the final of the 2025 ASEAN U-23 Championship, losing 0–1 to Vietnam at Gelora Bung Karno Stadium yesterday after a 36th-minute goal by Chong Puong Nguyen. The defeat added to Indonesia’s frustrating run of near-misses at their national stadium. Head coach Gerald Vanenburg praised his players’ effort, calling it a tough match and saying they “gave everything” despite the loss from a set-piece situation. Indonesia now turns its focus to the AFC U-23 Asian Cup qualifiers in Saudi Arabia this September.