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Hello reader,

Slowly but seemingly surely, the current administration is leaving Nusantara behind. And there’s really no greater indication to this than shrinking its budget allocation, as is happening for next year.

Are they going to call it quits? Scroll down for more details on Nusantara’s 2026 budget, as well as the day’s top stories.

Cheers,

Andra

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Law/Politics

• Former Semarang Mayor Hevearita Gunaryanti Rahayu, popularly known as Mbak Ita, was sentenced to five years in prison for corruption, while her husband, former Central Java Regional Legislative Council (DPRD) member Alwin Basri, received seven years in the same case. The verdict, lighter than prosecutors’ demands of six and eight years, also ordered each to pay IDR 300 million in fines or face four months in jail. Additionally, Ita must return IDR 683 million and Alwin IDR 4 billion, or serve an extra six months if unpaid. Judges cited their lack of support for clean governance as an aggravating factor, though their cooperation, remorse, and prior achievements were considered mitigating. Both were found guilty of taking part in three corruption schemes, including soliciting project kickbacks, skimming civil servant payments, and receiving gratuities from city projects totaling around IDR 9 billion.

• Police confirmed that motivational speaker Dwi Hartono, known for his “Klan Hartono” YouTube channel with 169,000 followers, was one of the masterminds behind the kidnapping and murder of Mohamad Ilham Pradipta, a 37-year-old branch manager of a state-owned bank. Dwi, also the owner of a tutoring center, was arrested in Solo, Central Java along with two accomplices, followed by another arrest in Jakarta; earlier, 11 others had been detained, bringing the total suspects to 15. Ilham’s body was discovered in a Bekasi rice field on August 21 with bound hands and feet, taped eyes, and severe bruises. Investigations revealed he had been abducted days earlier from a supermarket parking lot in East Jakarta, where CCTV footage showed men forcing him into a white car after he resisted, before fleeing the scene.

• The Attorney General’s Office has seized land and a luxury house in the elite Rancamaya Golf Estate, Bogor, linked to fugitive businessman Mohammad Riza Chalid in a money laundering case tied to crude oil governance corruption. The confiscated property spans about 6,500 square meters across three land certificates and includes a lavish residence with facilities such as a swimming pool. Although the certificates are not under Riza’s name, prosecutors say the purchase was funded by him, with an estimated market value of around IDR 15 million per square meter. Investigators also secured related ownership documents and stressed the seizure is part of ongoing efforts to trace and recover Riza’s assets.

• The Indonesian Trade Union Confederation (KSPI) announced it will stage a peaceful, non-violent protest tomorrow at the parliament comlex in Jakarta and across several regions, with internal security prepared to prevent provocateurs. KSPI president Said Iqbal, who also leads the Labour Party, stressed the rally must remain orderly and “sacred, without violence.” Workers will voice six demands: abolishing outsourcing and cheap labor practices, raising the 2026 minimum wage by 8.5–10.5%, revoking a 2021 government regulation on outsourcing per a Constitutional Court ruling, halting mass layoffs through a special task force, reforming taxes by increasing the non-taxable income threshold to IDR 7.5 million and scrapping taxes on severance, holiday bonuses, and pensions, and passing a new labor law in line with a recent Constitutional Court decision.

• An Indonesian citizen from North Central Timor, East Nusa Tenggara (NTT), was shot on Monday near the Indonesia–Timor-Leste border during a clash with a Timor-Leste national in a disputed zone. The victim, Paulus Oki, suffered a minor injury from what appeared to be a rubber or blunt bullet, not a live round, according to border security. The incident follows the August 17 shooting of another Indonesian, ATB, who was killed while hunting illegally inside Timor-Leste territory with 19 others. His death is being handled diplomatically, as his family refused an autopsy, while police warn residents against illegal crossings.

• The Food and Drug Monitoring Agency (BPOM) uncovered an illegal operation in Magelang, Central Java, where a veterinarian, YHF (56), was producing and injecting unlicensed stem cell–derived “secretome” products into human patients. The secretome, containing exosomes, proteins, and immunomodulators, was allegedly made in a Yogyakarta university lab where YHF also taught. Authorities seized secretome in various forms, including 23 five-liter bottles and wound-healing creams, worth an estimated IDR 230 billion. Patients came from across Indonesia and abroad, with some receiving shipments while others visited directly. BPOM has seized the products, named YHF a suspect, and warned the case violates the 2023 Health Law, carrying penalties of up to 12 years in prison and IDR 5 billion in fines.

Business/Economy

• The Nusantara Capital Authority (OIKN) will receive IDR 6.3 trillion in the 2026 state budget, far below the IDR 21.1 trillion requested by chief Basuki Hadimuljono to continue developing key projects such as legislative and judicial complexes, water systems, reservoirs, and roads. The allocation, confirmed by Finance Minister Sri Mulyani, is higher than the IDR 4.7 trillion outlook for 2025 but less than half of this year’s IDR 13.5 trillion, while OIKN’s total needs for 2025–2028 are estimated at IDR 48.8 trillion. The funding shortfall comes as the Public Works Ministry winds down its role in Nusantara construction, finishing multiyear contracts by 2026, after which OIKN will take full responsibility, with President Prabowo Subianto instructing Basuki to focus on legislative and judicial facilities.

• National Statistics Agency (BPS) chief Amalia Adininggar Widyasanti clarified controversy on social media accusing the agency of manipulating poverty data to favor the government, stressing that BPS never lowered the poverty line but follows strict methodology based on the National Socio-Economic Survey (Susenas). She explained that public misunderstanding arises from low statistical literacy, as many misinterpret the poverty threshold of IDR 609,160 per capita per month set in March 2025, which actually rises annually in line with inflation. Amalia emphasized that poverty status is determined by household, not individuals, meaning a family needs at least IDR 2.87 million per month to be considered above the poverty line. She added that BPS relies on consistent standards measuring both food and non-food spending, with data regularly updated through Susenas to ensure accuracy.

• Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that key Indonesian exports such as palm oil, cocoa, and rubber will be exempt from the 19 percent reciprocal tariff imposed by the US that began on August 7, as these products are not produced domestically in the US. While the final agreement is still pending, negotiations have consistently indicated that tariffs on crude palm oil, coffee, cocoa, rubber, nickel, and certain industrial components could be reduced to near zero. Airlangga emphasized that this exemption had long been promised, with discussions also covering free trade zone products and aircraft components. 

• The Finance Ministry announced that Indonesia’s single salary system for civil servants (ASN/PNS), which consolidates all earnings into one monthly package of base pay plus performance and cost-of-living allowances while scrapping attached benefits, will not take effect in 2026. Director of State Budget Drafting Rofyanto Kurniawan said the reform is still in the medium-term stage, with implementation depending on future conditions. First proposed in 2023 to improve purchasing power and simplify pensions, the scheme would eliminate allowances such as spouse, child, meal, position, and general benefits. Under the plan, civil servants would receive higher take-home pay since pension contributions are integrated, while the government pursues broader digital transformation in human capital management. 

• Fuel shortages have reemerged at private Shell and BP-AKR gas stations across the Greater Jakarta Area, with many customers flooding the companies’ social media accounts to complain about empty pumps. Both operators admitted to supply disruptions, saying stocks of popular fuels like Shell Super, V-Power, BP 92, and BP Ultimate remain limited in several areas, including Cikarang, Bekasi, South Jakarta, and Tangerang. Netizens reported the shortages have persisted since the weekend. Similar disruptions occurred earlier this year, when Shell’s management cited global supply chain delays and import approval processes as key challenges. 

Everything Else

• Indonesian tennis legend Yayuk Basuki believes 23-year-old Janice Tjen has the tools to upset 2021 US Open champion Emma Raducanu in their second-round clash at Flushing Meadows tonight. Praising Janice’s all-around game, strong serve, and tactical variety, Yayuk noted that Raducanu, who is still searching for her best form, may struggle against a style she dislikes. Janice, who has surged to world No. 149 after defeating No. 25 seed Veronika Kudermetova in the first round, has already collected six ITF titles and three runner-up finishes this year. Yayuk said expectations and online buzz will only fuel Janice’s confidence, calling her US Open run a long-awaited spark for Indonesian singles tennis, which has lacked Grand Slam presence in recent years.