AGP Executive Report

Bank Indonesia Rate Shock: Indonesia’s central bank unexpectedly hiked its lending rate by 25 bps to 5.5% to steady the rupiah, with stocks jumping and the currency slipping back under 18,000 per US dollar. Free Meals Overhaul: President Prabowo’s shake-up of the National Nutrition Agency (BGN) replaces top leadership after an evaluation flagged SOP, governance, and food-quality lapses, as the MBG program targets children, toddlers, and pregnant and breastfeeding mothers. MSME Law Push: The MSMEs minister is urging revisions to Law No. 20/2008 to better protect, empower, and boost competitiveness for Indonesia’s tens of millions of small businesses. Digital + Green Cooperation: Singapore and Indonesia reaffirmed plans to deepen ties on digital infrastructure, green energy, and industrial cooperation, including a joint BBK technology study. Philippines Quake Ripple: A 7.8 Mindanao earthquake has killed at least 35 and injured hundreds, prompting international condolences and relief efforts across the region. Coral Reef Damage Study: Research in Indonesia and the Philippines finds scuba divers frequently make reef contact, with about 41% causing visible damage—mostly unintentional. Retail Expansion Watch: Marks & Spencer signed a franchise deal via MAP to reopen in the Philippines later this year.

Philippines Quake Response: A powerful 7.8 earthquake off Mindanao has killed at least 37 people, injured hundreds, and displaced more than 20,000 as rescuers race through collapsed buildings in General Santos and Sarangani; hospitals are operating outside damaged wards and tsunami warnings were later lifted. Indonesia-Philippines Links: Indonesia lifted its tsunami warning after the quake, while tremors were felt across parts of Sulawesi, underscoring the region-wide risk. Social Forestry Push: Indonesia’s Deputy Forestry Minister Rohmat Marzuki urged better social forestry management through agroforestry, aiming to boost incomes while keeping forests sustainable, with millions of hectares already allocated to community groups. Manufacturing Exports Goal: Indonesia’s Industry Ministry wants manufacturing’s export share to rise from 20% to 30% to strengthen resilience and global reach. Preventive Health Tech: Actxa and LIF launched a smart ring partnership in Indonesia, debuting the LIF Core Smart Ring with AI Glucose Scan to expand preventive health adoption. Digital Economy Cost: Indonesia’s communications ministry says cheaper, more accessible internet is key to digital growth and is expanding fiber, BTS, and LEO satellite coverage. Tourism & Culture: The Tourism Ministry backs the BRI Jazz Gunung Series to boost mountain destinations, local MSMEs, and environmental sustainability. Copyright Enforcement: Korea hosted a joint meeting in Seoul to coordinate crackdowns on overseas copyright infringement of Korean content, with Indonesia among participating countries. Travel Awards: Tripadvisor named Indonesia’s G.H. Universal Hotel in Bandung the world’s No. 1 top hotel in its 2026 Travelers’ Choice awards.

Philippines Quake Fallout: A 7.8-magnitude earthquake off Mindanao has killed at least 32 people and injured more than 200, with tsunami warnings briefly issued across the region before being lifted; Indonesia also felt the tremors, and aftershocks are adding to the disruption. Indonesia Digital Child Safety: Indonesia’s Communication and Digital Affairs Minister Meutya Hafid urged parents to watch four online risks for children—strangers, harmful content, digital addiction, and health impacts—under a new child-protection framework for platforms. Health Tourism Boost: A new Pekanbaru–Melaka flight route starts June 10, with Wings Air operating three weekly trips, aiming to bring more Indonesians for medical treatment. Sustainability & Oceans: Norway and ASEAN partners launched a blue-economy push in Jakarta for sustainable aquaculture and fisheries, while World Oceans Day updates show marine protected areas have reached 10% coverage. Business & Retail: Marks & Spencer is shifting its Philippines operations to Indonesian retail group MAP via a new franchise deal, with the first store planned for later this year.

Philippines Earthquake & Tsunami Alerts: A powerful 7.8 quake struck offshore Mindanao, killing at least 15 people and injuring hundreds, with tsunami warnings issued across the Philippines, Indonesia, Japan and other Pacific areas before being lifted later as sea levels returned to normal. Indonesia Financial Pressure: The rupiah’s sharp slide and a stock sell-off are squeezing manufacturers, as currency weakness and tighter policy conditions risk a credit crunch. Bali Tourism Taxes Under Scrutiny: A closer look at Bali’s “disappearing” tourist tax flow points to gaps between booming arrivals and weaker tax collection. Education Debate: Parents and watchdogs react to President Prabowo’s push for French lessons in schools, with concerns over teacher readiness. Scam Victims in Cambodia: Indonesians escaping cyberscam compounds in Cambodia say they’re still trapped and abused, calling for stronger protection and faster repatriation. India-Indonesia Talks: India and Indonesia use their joint commission meeting to push deeper defence, security and maritime cooperation. Digital Infrastructure: Digital Realty announces Malaysia data-centre expansion, underscoring Southeast Asia’s growing demand for connectivity and AI-ready capacity.

India–Indonesia Strategic Push: External Affairs Minister S Jaishankar and Indonesia’s Sugiono co-chaired the 8th Joint Commission Meeting in New Delhi, mapping deeper cooperation in defence, maritime security, digital connectivity, trade/fintech, health, fertilisers, critical minerals, tourism and culture ahead of PM Modi’s Jakarta visit. Free Meals Under Scrutiny: Indonesia’s flagship MBG nutrition programme faces a major leadership test after a reshuffle and corruption probe involving former National Nutrition Agency (BGN) officials, raising questions over continuity and governance. Rupiah & Trade Pressure: Finance Minister Purbaya Yudhi Sadewa inspected container congestion at Tanjung Priok, pointing to detained imports and longer dwelling times as authorities move to ease port delays. Creative Economy Boost: Indonesia is betting on gaming and esports as a jobs engine for the creative economy, with government-industry cooperation to grow digital talent. Sports Spotlight: Badminton at the Indonesia Open saw Malaysia’s Sze Fei-Nur Izzuddin and Nur Izzuddin-Sze Fei win men’s doubles in Jakarta, while MotoGP’s Marc Marquez celebrated a 100th Grand Prix win in Hungary.

Free Meals Rollout: Indonesia’s Public Works Ministry says it has finished 222 Nutrition Fulfillment Service Unit kitchens (SPPGs) for Prabowo’s Free Nutritious Meals program across 30 provinces, with handover to the National Nutrition Agency (BGN) underway. Rupiah & Markets: Indonesia is again moving to steady the rupiah amid market pressure, while investors watch for further volatility. Education & Skills: The deputy higher education minister urged vocational universities and polytechnics to better match industry needs and boost domestic tech capacity. People’s Schools: Public Works also reports accelerated Phase II People’s School construction progress, aiming for the 2026/2027 school year. Hajj Services: Indonesia says nearly 17,000 regular Hajj pilgrims will stay in four- and five-star Medina hotels near the Prophet’s Mosque, prioritizing elderly and special-needs travelers. Sports: Indonesia secured spots in the Indonesia Open final through Jonatan Christie and the doubles pair Raymond Indra/Nikolaus Joaquin.

Badminton Spotlight (Indonesia Open): Malaysia’s Goh Sze Fei-Nur Izzuddin Rumsani and partner shocked world No.1 Kim Won Ho-Seo Seung Jae to reach the final in Jakarta, setting up an all-Indonesian semifinal winner for the other spot. Sports & Youth Basketball: Gilas Pilipinas girls thrashed Indonesia 88-62 to sweep SEABA qualifiers and earn a return ticket to the FIBA U18 Women’s Asia Cup. Rupiah & Markets: Indonesian officials renewed efforts to steady the rupiah and align policies with the Finance Ministry as markets stay jittery. Energy & Climate: Indonesia’s geothermal push stays in focus, while El Niño warnings point to worsening dry conditions across the region. Community & Culture Abroad: “Bersama in the Bay” in San Leandro drew about 200 people for Indonesian, Malaysian and Singaporean food, music and hands-on batik/angklung activities. Hajj Logistics: Indonesia’s Hajj and Umrah ministry monitored returning pilgrims and reminded them to follow airline rules. Digital & Media: A BWF time-clock red-card controversy at the Indonesia Open sparked debate over rule enforcement.

KPK Anti-Graft Drive: Indonesia’s Corruption Eradication Commission (KPK) has launched a graft probe into alleged bribery tied to banking notification services at state lender BRI and Telkom, with suspected state losses of nearly Rp2 trillion; KPK also continues an EDC procurement case at BRI with five suspects named. Tourism Growth: The tourism ministry says foreign arrivals through April 2026 are on a positive track, with 1.25 million visits in April (+7.22% y/y) and 4.68 million in Jan-April (+8.24% y/y), led by tourists from Malaysia, Australia, China, Singapore and Timor-Leste. Maritime Incident: A container vessel sank about 6km off Batam; all nine crew were rescued and Singapore says shipping lanes are unaffected. Digital Finance Security: OJK warns that rupiah weakness and rising cyber threats make stronger digital transaction security urgent, stressing banks must protect public trust as cashless payments surge. Economy Watch: Customs and excise revenue hit 123.8 trillion rupiah by end-May (36.8% of the 2026 target), with excise and import duty receipts supporting recovery. Defense Talks: Japan and Indonesia agreed to start working-level talks on exporting Asagiri-class destroyers, including training, maintenance and operational aspects. Sports Spotlight: Indonesia Open badminton action continues, with PV Sindhu advancing and other matches shaping the semis.

Immigration Crackdown: Indonesia ends fast-track processing for foreign limited and permanent stay permits (ITAS/ITAP), with officials saying the old system enabled shortcuts via special payments. Rupiah & Markets: The rupiah slid to a record low as investors “sell Indonesia,” while regional stocks stayed under pressure amid AI and global risk worries. Sports Tourism: Bali will host the 2026 Asian Open Water Swimming Championship (June 13–15), aiming to boost sports tourism and longer stays. Environment & Trade: Groups urge action against illegal mercury smuggling in Southeast Asia after Indonesia seized hundreds of mercury bottles hidden in shipments. Climate Watch: “Super El Niño” warnings are intensifying, with extreme heat and rainfall disruption expected to ripple across the region. ASEAN Digital Safety: Japan is considering flexible age-verification and parental-control defaults for minors on social media, as other countries tighten access rules. Local Education: Central Java becomes the first province to integrate cooperative education into school curricula.

Free Meals Overhaul: Indonesia’s National Nutrition Agency (BGN) says it will refocus the MBG programme on meal quality, not just hitting the 82m/83m beneficiary target, after leadership turmoil and corruption scrutiny. Anti-Graft Shake-Up: President Prabowo dismissed Deputy Minister Silmy Karim after KPK named him a suspect, with no replacement yet confirmed. Rupiah & Markets: The JCI slid about 2.5% in Friday’s first session as the rupiah hovered near Rp18,000 per US dollar, while a fact check rejects claims Bank Indonesia is deliberately weakening the currency. E-Commerce Rules: The trade ministry updated e-commerce regulations to formally include ride-hailing and online travel agents as PMSE organizers. AI for Creators: Meta launched an AI creator assistant on Facebook, offering personalized posting and performance insights, starting with creators in the US, Canada and India. Volcano Disruption: Mount Lewotobi Laki-Laki erupted in Flores, sending ash high and forcing airport closures and flight disruptions. Digital Governance: Indonesia seeks Estonia’s expertise to boost digital governance and public services. BRICS Culture: BRICS culture working group meetings in Varanasi put the creative economy and ethical AI on the agenda.

Digital Finance Security: Indonesia’s OJK urged banks and fintechs to harden digital transaction defenses as cybercrime rises, citing soaring online incidents and AI-enabled fraud risks. Biometrics & SIM Registration: From July 1, Indonesia will require face biometrics for new mobile number registrations, with data encrypted and stored only by Dukcapil. Free Meals Crackdown: Indonesia’s nutrition agency (BGN) will pause new MBG kitchen construction, refocus beneficiaries, and improve existing kitchens after corruption concerns and leadership shake-ups. AI for Creators: Meta rolled out an AI-powered creator assistant on Facebook to explain why posts work and offer tailored recommendations, alongside expanded Reels translation. Sports (Indonesia Open): PV Sindhu was ousted by world No. 1 An Se Young, while Malaysia’s pairs advanced and India’s doubles saw key progress. Regional Cooperation: Malaysia and Indonesia pledged stronger JCBC collaboration, including progress on land and maritime disputes. Climate Risk: Research highlights how “blue carbon” coastal ecosystems are shifting under climate change, expanding risk zones.

Free Meals Fallout: President Prabowo has fired the head of Indonesia’s flagship free school meals programme after a wave of food poisoning and corruption allegations, and ordered investigations into suspected graft at the National Nutrition Agency—an issue now escalating into arrests and a major political test for the billion-dollar scheme. Rupiah Under Pressure: The rupiah slid to a record low, breaching the 18,000 per US dollar level as energy costs from the Iran war lift oil prices, tighten dollar liquidity, and squeeze Indonesia’s trade surplus. El Niño Threat to Food: Dry weather linked to a strengthening El Niño is disrupting crop planting across Asia, with Indonesia’s palm oil and other farm outputs facing rising risk as farmers cut back amid hotter, drier conditions. Commodity Overhaul Impact: Indonesia’s move to centralise commodity exports is already reshaping regional competition—Malaysia’s palm oil shipments face pressure as buyers may shift toward cheaper Indonesian supplies during the transition. Regional Security: Indonesia and Singapore reaffirmed defense cooperation in annual staff talks, focusing on intelligence, exercises, education, and logistics to boost interoperability. Indonesia Open Sports: Badminton headlines included Satwiksairaj Rankireddy and Chirag Shetty withdrawing mid-match due to injury, while PV Sindhu’s run ended after another loss to world No. 1 An Se Young.

US Tariff Shock for Indonesia: The Trump administration has proposed new Section 301 tariffs of up to 12.5% on imports from 60 economies, including Indonesia, citing failures to curb forced-labour goods—sparking pushback from trading partners and fresh compliance worries for exporters. El Niño Threat Looms: The World Meteorological Organization says there’s an 80% chance El Niño will form between June and August, with risks of drought, heavy rain and heatwaves—while experts warn a “super El Niño” could drive even harsher impacts on food, forests and water. Rare Bird Rediscovered in Indonesia: Indonesia’s Blue-fronted Lorikeet, last confirmed in 2014 after decades of silence, has been photographed again in remote Buru highlands, reigniting hope for conservation of the elusive species. Free Meals Crackdown: Indonesia’s free meal programme faces leadership shake-ups and raids after corruption and food-poisoning allegations, with officials reportedly arrested and the head dismissed. Energy & Data Centres: Malaysia and Indonesia are also pushing regional energy and supply-chain resilience talks, while IREN’s 800MW data centre campus in Australia highlights the fast-growing AI power demand. Sports (Indonesia Open): Badminton action continues as Aaron Chia-Soh Wooi Yik and Pearly Tan-Thinaah advance, with mixed results for other pairs.

Free Meals Probe: Indonesia’s Attorney General’s Office raided the National Nutrition Agency (BGN) after President Prabowo sacked BGN chief Dadan Hindayana, with investigators locking down the office amid food-quality and food-poisoning concerns. Social Media Crackdown for Minors: Indonesia’s under-16 ban is forcing platforms like Meta, YouTube and Roblox to rapidly deactivate accounts or redesign services, triggering mass deletions and “kids” tiers. Rupiah and Markets: The rupiah hit a new low and Jakarta stocks slid to a five-year bottom as oil prices strain finances and inflation stays above target. Trade War Pressure: The US proposed new 10%–12.5% tariffs on 60 economies over forced-labour imports, explicitly naming Indonesia among those facing duties. BRICS Disaster Risk Meeting: BRICS DRR talks began in Odisha’s Puri with Indonesia among participating nations, focusing on resilient infrastructure and early warning systems. Security at Sea: TNI and a joint task force intercepted vessels in Riau Islands waters carrying raw minerals with suspected illegal rare earth and radioactive elements. Diplomacy: Turkish FM Hakan Fidan arrived in Indonesia for talks on expanding cooperation, including defense and trade. Tech Infrastructure: STT GDC secured its first green loan for the STT Jakarta data centre expansion, supporting Indonesia’s digital buildout. Sports: PV Sindhu advanced at the Indonesia Open; Lakshya Sen and Kidambi Srikanth were knocked out in opening rounds.

Pancasila & Economy: President Prabowo framed his agenda as a Pancasila-driven push for economic transformation, arguing growth hasn’t translated into broad welfare and pointing to free nutritious meals and rural cooperatives as key drivers. Free Meals Abroad: Indonesia’s nutrition agency is weighing a pilot expansion of the free meals program to Saudi Arabia, starting with over 1,000 students in Jeddah, even as critics question food safety and procurement at home. Security Ties: Qatar’s deputy PM and defence minister met Indonesia’s defence chief in Jakarta, reviewing regional security and signing deals involving Barzan Holding Group. Waisak at Borobudur: Thousands of Buddhists gathered at Borobudur for Waisak, with a procession, prayers, and a drone light show calling for peace and tolerance. Papua WWII Bomb: Five people were killed and three remain missing after a suspected WWII ordnance exploded on Biak Island, with bomb disposal teams securing the area before full searches. El Niño Watch: The UN weather agency warned El Niño is developing and could bring hotter conditions and more extreme weather, urging Indonesia and the region to prepare. Indonesia Open Sports: PV Sindhu advanced to Round 2 while Lakshya Sen crashed out in the first round as the Indonesia Open continued at Istora Senayan. Whoosh Rail: Indonesia’s Whoosh high-speed line added six daily trips to handle post-holiday demand, boosting services to 68 per day. Online Age Rules: Indonesia’s new social media age limits are pushing platforms to purge accounts and roll out kid-focused versions.

Laos Rescue Update: Rescuers in Xaisomboun, Laos are searching for two missing people in a flooded cave after heavy rain blocked the main entrance; five of seven trapped villagers have already been evacuated, with teams trying to find a dry route while pumping water out. Singapore Open Glory: India’s Satwik-Chirag ended a two-year title drought by winning the Singapore Open men’s doubles, beating Indonesia’s Fajar Alfian and Muhammad Shohibul Fikri in a comeback final. El Niño Warning: The UN’s weather agency says El Niño is likely to return soon, with an 80% chance before September and up to 90% persistence until November—raising risks of heat stress, drought, and extreme weather. Palm Oil & Farmers: Indonesia’s Jan–Apr crude and refined palm oil exports rose 20% to 7.72mn tons, but farmers are still reeling from new export rules as prices dive. Child Safety Online: Indonesia’s communications ministry warns weak age checks and platform algorithms can expose children to pornographic content, pushing for stronger safeguards under the PP Tunas rules. Defense Ties: Indonesia and Qatar are deepening defense cooperation in Jakarta amid rising global security tensions. Digital Commerce: Google expands virtual try-on across key APAC markets including Indonesia, aiming to make shopping more immersive.