Passenger ferry off Java catches fire, killing five and leaving 41 missing
Plus: Authorities uncover a massive rice fraud scheme involving 39 suspects and Rp170 trillion in losses, Indonesia's stock market looks set to strengthen, and Thai PM makes first official Indonesia visit in 15 years.
TL;DR
- Ferry Mutiara Sentosa 2 burned between Surabaya and Makassar, killing five with 41 still missing; 225 rescued by nearby vessels.
- Food Task Force charged 39 suspects from two companies in premium rice fraud case involving adulterated brands and Rp170 trillion in estimated losses.
- Jakarta Composite Index poised to strengthen as analysts recommend buying stocks ADMR, ASII, PTRO, and UNVR.
- Thai PM Anutin visits Indonesia August 3-4 to sign strategic partnership covering security, trade, energy, and food cooperation through 2030.
Politics
Thai PM makes first official Indonesia visit in 15 years
Thai Prime Minister Anutin Charnvirakul arrived in Indonesia on August 3 for a two-day visit, the first official trip by a Thai PM in 15 years. The visit signals both nations' commitment to stronger ties as Asean faces mounting geopolitical pressure. (via Bangkok Post)
Strategic partnership plan signed through 2030. Anutin met President Prabowo to discuss trade, investment, energy, food security, education, security and cultural cooperation. The Cabinet approved a Thailand-Indonesia Strategic Partnership Plan for 2026-2030, with foreign ministers signing it during the visit. (via The Star)
Anutin addresses Asean priorities. The Thai PM delivered a foreign-policy address at the Asean Secretariat, outlining Thailand's regional agenda ahead of its 2028 Asean chairmanship. He later attended an Indonesia-Thailand Business Forum organized by both nations' chambers of commerce. (via Bangkok Post)
Indonesia probes Malaysian detention of Riau fishermen. Indonesia's Riau Islands provincial government coordinated with the Indonesian Consulate General in Kuching regarding the detention of Indonesian fishermen by Malaysian authorities, marking the latest in recurring maritime friction between the nations. (via Antara News)
Business and economy
Authorities uncover colossal rice fraud scheme worth Rp170 trillion
Indonesia's Food Task Force has charged 39 suspects across 38 cases in a massive rice fraud scheme, with estimated public losses reaching approximately Rp169.9 trillion ($9.4 billion). The investigation exposed a sophisticated operation producing counterfeit premium rice that failed quality standards but was sold under well-known brands. (via Katadata)
Two major producers named. Suspects from PT Food Station and PT Padi Internasional Makmur face charges under consumer protection and money-laundering statutes, with sentences up to five years and fines of Rp2 billion. Police seized 13,740 sacks of rice and 58.9 tons of broken rice sold under brands including Sania, Fortune, Sofia, and SIP. (via Katadata)
IPO market stalls as quality reforms take hold. Indonesia's stock exchange is prioritizing listing standards over deal volume, introducing stricter free-float requirements and transparency rules to restore investor confidence after MSCI concerns threatened the country's emerging market status. The IDX is reconsidering its 2026 IPO target. (via Nikkei Asia)
Jakarta stock market poised to gain. Analysts expect the Composite Index to strengthen on August 3, recommending positions in ADMR, ASII, PTRO, and UNVR amid broader market recovery. Small-cap UMKM enterprises like Sambal Mantu Bali, a chili paste producer, are playing an unexpected role in inflation control, leveraging local supply chains to stabilize regional food costs. (via Katadata)
Weather and disasters
Passenger ferry fire off Java coast kills five, 41 still missing
The passenger ferry Mutiara Sentosa 2 caught fire early on August 3 while sailing between Surabaya in East Java and Makassar in South Sulawesi, killing at least five people and leaving 41 missing. The blaze erupted between 6 and 7 a.m. local time aboard the vessel carrying 271 people: 232 passengers and 39 crew members. (via Nikkei Asia)
Rescue operation rescues 225. Nearby vessels responded quickly, rescuing 225 passengers and crew from the burning ferry by Sunday afternoon as thick black smoke engulfed the ship. Indonesia's National Search and Rescue Agency (Basarnas) continued searching for those unaccounted for as rescue operations extended through the day. The cause of the fire remains unknown. (via Nikkei Asia)
