President signals non-aligned course as global tensions mount
Plus: E-commerce tax enforcement begins, wildfires kill one amid El Niño surge, and Asia defends football governance against FIFA sale plan.
TL;DR
- Prabowo pledges Indonesia will remain non-aligned and stable amid rising global tensions, rejecting pressure to take sides in geopolitical disputes.
- Indonesia's major e-commerce platforms began collecting taxes on August 1, with economists warning higher compliance costs may push consumer prices up.
- One person died as wildfires flared across Indonesia on July 30, part of a surge tied to El Niño conditions expected to last through early 2027.
- Asia's football body backed UEFA and CONCACAF against FIFA's controversial World Cup franchise-sale plan, with Indonesia's federation endorsing the stance.
Politics
Prabowo charts non-aligned course amid global tensions
The president reaffirmed Indonesia's balanced foreign policy while asserting the country will remain stable even as geopolitical rifts widen elsewhere.
President Prabowo signaled Indonesia's commitment to its non-aligned foreign policy stance, pledging the country will stay neutral and avoid taking sides amid rising global tensions. He vowed Indonesia will remain "a good neighbor" despite mounting pressure and volatility around the world. (via Antara News)
Confidence in stability rooted in governance. Prabowo urged calm and asserted that Indonesia's institutional strengths and policy continuity will insulate the country from external shocks, even as geopolitical conflicts intensify elsewhere. (via Antara News)
Business and economy
E-commerce giants enforce new tax regime as economy faces headwinds
Shopee and Tokopedia began collecting taxes on August 1 as Indonesia's finance sector braces for lending pressure and asset swaps among conglomerates.
Shopee and Tokopedia began collecting taxes on August 1, marking a major compliance shift for Indonesia's e-commerce sector. Economists warned that revenue-based tax schemes could compress vendor margins and drive consumer prices higher, raising concerns about the move's impact on affordability. (via Katadata)
Unilever Indonesia reshapes consumer portfolio. PT Unilever Indonesia announced plans to divest the Royco seasoning brand, following earlier reports of selling its Bango soy sauce business. The moves reflect a strategic shift in the company's Indonesian operations. (via Katadata)
KADIN backs 8% economic growth target. Indonesia's Chamber of Commerce and Industry endorsed President Prabowo's ambitious target to achieve 8% annual economic growth, signaling business sector confidence in the administration's economic agenda. (via Antara News)
IMPC surges 51% in profit for first half of 2026. Mining and processing company IMPC reported substantial earnings gains and raised its full-year profit forecast above Rp 800 billion ($46 million), riding strong commodity prices. (via Antara News)
Blibli narrows losses as e-commerce heating up. Indonesia's e-commerce platform Blibli cut its quarterly loss while pushing revenue up 43%, demonstrating the sector's resilience despite macroeconomic headwinds and rising compliance costs. (via DealStreetAsia)
Weather and disasters
One dies as wildfires surge across Indonesia, El Niño set to dominate through 2027
A farmer in Central Java became the first recorded death as wildfires flared during peak dry season, with Indonesia bracing for prolonged drought conditions.
One person died in Central Java as wildfires erupted across multiple provinces on July 30, marking the beginning of what could be a devastating fire season. A 70-year-old farmer became trapped by flames while working in a sugarcane field, the first confirmed death as Indonesia's fire-prone zones surged during the dry season. (via The Jakarta Post)
El Niño expected to persist through early 2027. Indonesia's meteorological agency confirmed that El Niño conditions will dominate the country's weather through the first quarter of 2027, with peak drought intensity forecast for August. The prolonged heat and aridity will affect agriculture, water availability, and fire risk across multiple provinces. (via The Jakarta Post)
Government ramps up drought response. Indonesia is stepping up relief efforts as El Niño conditions persist, with water management agencies coordinating emergency water supplies and forest protection measures. Officials warned that the unusual intensity of this year's dry season poses risks to food security and energy production. (via Antara News)
Health
Indonesia intensifies heart screening program to cut mortality
Public health officials launched a nationwide cardiac screening initiative targeting early detection and prevention of cardiovascular deaths.
Indonesia's health ministry is pushing a nationwide heart screening program aimed at cutting mortality from cardiovascular disease, one of the leading causes of death in the country. The initiative focuses on early detection and prevention among high-risk populations, with screening facilities being expanded across provinces. (via Antara News)
Technology
Fintech startup Brick explores majority stake sale to Australian buyer
Indonesian fintech firm Brick is in talks to cede control to a larger foreign operator, part of a wave of M&A in the region's digital finance sector.
Indonesian fintech startup Brick is negotiating with an Australian fintech company over a majority stake sale, according to reports on July 31. The deal would mark a significant consolidation in Indonesia's increasingly competitive lending and payments landscape as foreign players seek footholds in Southeast Asia's largest market. (via DealStreetAsia)
Ride-hailing platform TADA accelerates growth. Indonesian mobility platform TADA reported a 34% increase in revenue for 2025, reaching approximately $48 million as it strengthens its position ahead of Southeast Asia's post-pandemic recovery. (via DealStreetAsia)
Travel and tourism
Soekarno-Hatta to welcome Emirates A380 as international aviation expands
Jakarta's main airport will receive Emirates' iconic double-decker aircraft on August 8, marking a milestone in Indonesia's push to boost international connectivity.
Soekarno-Hatta International Airport announced that Emirates' flagship Airbus A380-800 will land in Jakarta on August 8, bringing the iconic double-decker aircraft to Indonesia for the first time. The arrival signals growing international confidence in Indonesia's aviation infrastructure and tourism appeal, with the aircraft opening new capacity for connecting passengers through the region. (via Tempo English)
Sports
Asia defends football autonomy as FIFA World Cup franchise plan sparks backlash
Indonesia's national federation backed UEFA and CONCACAF in rejecting FIFA's controversial scheme to sell tournament hosting rights to private operators.
Asia's football confederation joined UEFA and CONCACAF on July 31 in opposing FIFA's proposal to sell World Cup hosting rights to private commercial operators, citing concerns over the sport's governance and integrity. Indonesia's PSSI announced its support for the collective stance, marking a rare moment of continental unity against FIFA leadership. (via The Jakarta Post)
Indonesia's federation backs FIFA overhaul. The PSSI also endorsed FIFA's World Cup expansion proposal while opposing privatization measures, signaling Indonesia's preference for a larger but independently governed tournament structure. (via Antara News)