AmCham Update Vol. 7 #076

Febrie Denies Corruption Allegations, Indonesia's Copyright Revision Tackles AI, Indonesia Joins China-Backed Global AI Body, BI Says Banking Liquidity Adequate, Public Works Minister in Hot Water over Reshuffles

Jul 20, 2026

Febrie Denies Corruption Allegations

Embattled former top corruption prosecutor Febrie Adriansyah has gone on the offensive, denying corruption and money laundering allegations through his attorney after undergoing nearly 11 hours of questioning at the Attorney General’s Office (AGO) headquarters in Jakarta on July 17.

It was the AGO’s first examination of the former Deputy Attorney General for Special Crimes since it assumed control of three investigations from the National Police involving alleged corruption at state insurer Asabri, coal procurement for the State Electricity Company (PLN), and debt settlement at a Krakatau Steel subsidiary. Although Febrie remains a suspect, prosecutors did not detain him.

According to his high-profile lawyer, Hotman Paris Hutapea, Febrie answered 18 questions related to the Asabri investigation.

Hotman said Febrie denied allegations that businessman Tan Kian, a high-profile property developer who has been detained by police as a witness in the broader Asabri corruption and money laundering investigation, transferred more than Rp 50 billion in alleged bribes to him.

Febrie also rejected claims linking him to cash and 74 kilograms of gold seized during police raids at his home in Sentul, West Java. According to Hotman, the Sentul property and another raided property, de'Clan Café, had been managed by lawyer Don Ritto since 2022, denying allegations that either location was used to hide cash. Ritto is also a suspect in the cases.

During a visit to East Java on July 17, President Prabowo Subianto reiterated his administration’s commitment to combating corruption.

“We will not tolerate those who have been entrusted by the people and paid by the people, yet implement policies that harm the people. Especially those who steal public money; we will not tolerate it,” Subianto said.

The case has also drawn legislative attention, with DPR Commission III establishing a working committee to examine the dispute between the National Police and the AGO over the handling of the Febrie case.

Separately, Tempo and other outlets reported that Subianto held several high-level meetings following the police raids to discuss the handling of the case. The Tempo report alleged that Defense Minister Sjafrie Sjamsoeddin and House Deputy Speaker Sufmi Dasco Ahmad lobbied for prosecutors to take over the investigation, although the government has not publicly commented on the claims.

The AGO has not responded to Febrie’s denials.

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Indonesia's Copyright Revision Puts Focus on AI Platforms

Indonesia's House of Representatives (DPR) is deliberating amendments to the 2014 Copyright Law that would introduce explicit provisions on artificial intelligence (AI). If enacted, Indonesia would be among the first countries in Southeast Asia to incorporate AI in its copyright framework. The proposed bill would establish new rules governing AI-assisted and AI-generated content, platform obligations and the protection of journalistic works.

The draft grants copyright protection to AI-assisted works with sufficient human involvement while excluding content generated entirely by AI. It would also prohibit AI systems from imitating a creator’s distinctive style, require disclosure of AI-generated content, and subject the use of copyrighted material to fair-use provisions or licensing agreements.

The Law Ministry’s Director General of Intellectual Property, Hermansyah Siregar, said the revision responds to the rapid development of generative AI, as governments grapple with the use of copyrighted material to train AI models.

“The development of generative AI has disrupted the copyright framework. If unregulated, it could kill human creation,” Hermansyah told Reuters on July 17.

The proposals could have significant implications for global technology companies operating AI services in Indonesia. Intellectual property lawyer Ari Juliano Gema said the draft appears to treat commercial AI development and research activities similarly, while Google warned that overly broad requirements and potential sanctions could discourage innovation and investment. The company urged the government to adopt a more balanced framework that protects creators without undermining Indonesia’s digital innovation ecosystem, according to Reuters.

Beyond AI, the bill expands copyright protection for journalistic works and requires digital platforms to compensate publishers for aggregating, republishing, displaying link previews, or using news content to train AI models. Royalties would be distributed through state-supervised collective management organizations (LMKN). Separately the Press Council has proposed requiring proper attribution when quoting journalistic content.

Deputy Chairman of the DPR’s Legislative Body (Baleg) Martin Manurung said on July 13 that the harmonized bill had been submitted to the DPR leadership and was awaiting assignment before formal deliberations begin with the government.

The revision of Law 28/2014 on Copyright was approved as a DPR legislative initiative in March after receiving support from eight parliamentary factions.

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Indonesia Signs Up for China-Backed Global AI Organization

Indonesia has joined the World Artificial Intelligence Cooperation Organization (WAICO), a China-backed initiative aimed at strengthening international cooperation and governance on artificial intelligence (AI). Coordinating Minister for Economic Affairs Airlangga Hartarto signed the organization’s founding document during the World Artificial Intelligence Conference (WAIC) in Shanghai on July 16.

The founding document, signed by 29 countries, establishes WAICO as an independent intergovernmental organization. Founding members will help shape the organization’s institutional framework and future policy direction.

Speaking at the conference, Chinese President Xi Jinping pledged to support developing countries in strengthening their AI capabilities, warning that unequal access to AI could create “new historical injustices.” He also reaffirmed China’s ambition to play a leading role in global AI governance, positioning the country’s open-source AI models as a global public good.

“The development of AI should not be a solo performance of a single nation, rather a symphony of global cooperation,” Xi said.

Airlangga said Indonesia’s participation reflects the country’s commitment to helping bridge the global AI divide and promote responsible AI development.

“Indonesia’s participation is a commitment to develop the governance framework and guiding principles for AI. Particularly, we want to ensure that AI is developed in an inclusive and responsible manner and that its benefits are shared by all,” he said on July 16.

Airlangga said WAICO provides Indonesia with an opportunity to help shape global AI standards while ensuring national interests are reflected in the organization’s future policies. Indonesia also aims to accelerate AI adoption across strategic sectors to strengthen long-term economic growth and competitiveness.

During an earlier meeting with Xi, Airlangga conveyed President Prabowo Subianto’s support for the WAICO initiative and Indonesia’s readiness to deepen AI cooperation.

United Nations Secretary-General António Guterres also welcomed the establishment of WAICO, calling on governments and the private sector to ensure AI benefits are shared broadly while prioritizing capacity building, AI safety, and sustainability.

The founding members include Indonesia, Brazil, Russia, China, Pakistan, Serbia, Malaysia, Cambodia, Laos, and Myanmar.

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BI Says Banking Liquidity Remains Adequate

Bank Indonesia said on July 17 that it was monitoring liquidity in banks to guarantee lenders have sufficient funds to support stability and economic growth.

The overnight interbank rate, INDONIA, fell to 6.17 percent on July 16, from 6.62 percent a month earlier, reflecting lower bids in the interbank market, Bank Indonesia's senior deputy governor Destry Damayanti said in a statement.

"Going forward, the central bank will continue to make sure there is adequate liquidity in banks so that the distribution of liquidity among banks is well maintained and supportive towards processes of efficient interbank interest rate discovery," she said.

The central bank has also communicated with banks to resolve obstacles regarding liquidity distribution while ensuring risks are well managed, she added.

In June, Finance Minister Purbaya Yudhi Sadewa and central bank Governor Perry Warjiyo briefly agreed to move some of the government's funds from state-owned commercial banks to the central bank, which had affected banking liquidity.

Purbaya later moved the funds back to the state banks and added even more funds in a continuing bid to spur lending growth.

Purbaya’s logic for the policy, which began last year, has been that banks would be forced to make more loans to make up for the interest on the state deposits they have to pay, but at a rate set at just 80 percent of the BI Rate, which makes the funds attractive.

This all translates to cheaper liquidity that Purbaya hopes can push loan growth and jump-start the economy, as he said on many occasions.

Permata Bank chief economist Josua Pardede told The Jakarta Post on July 17 that there is a risk of banks getting too reliant on the funds, creating a dependency cycle if banks see the funds as a “permanent source of liquidity.”

The central bank this year has also raised its policy rate by 100 basis points, seeking to attract fresh capital inflows to support the falling rupiah.

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Public Works Minister in Hot Water over Reshuffles

Public Works Minister Dody Hanggodo is in the hot seat as reports circulate of officials getting transferred to posts outside Jakarta following the leak of a document that shows the minister trying to bring his wife and family on an overseas work trip.

The ministry document circulated on social media earlier this month and includes the names of eight delegates scheduled to travel to New York City from July 13 to 19 to attend a UN meeting. Among the names listed in the document, signed by the Ministry’s Secretary-General Apri Artoto on June 29, were Dody’s wife and daughter.

The document sparked public criticism and the trip was eventually canceled. Days after the document was seen, social media was flooded with claims that Dody had reassigned some officials to regional offices outside Java in retaliation for the leak.

Dody confirmed the transfers on July 15 but denied the moves were acts of reprisal for the leak. “I have 38,600 employees, why shouldn’t I be allowed to reassign them?” the minister said, as quoted by Kompas.com.

During a press briefing, Apri said Dody’s family members were included to facilitate visa applications through the Foreign Ministry. He said no state funds were to be used to finance their trip and he would find and punish the source of the leak.

Since taking office in October 2024, Dody, who is an engineer and Democratic Party member, has overseen the reassignment of more than 100 employees, ranging from director generals to lower-ranking civil servants.

The repeated internal shake-ups have raised concerns among lawmakers.

In a meeting on June 11, Yasto Soepredjo Mokoagow of DPR Commission V, said the situation created anxiety among employees.

“Civil servants at the ministry are now afraid to carry out programs,” he said. “I’m worried these cautionary measures would hamper program implementation.”

Dody has repeatedly claimed that a corrosive “deep state” operated within the ministry, which is why he has repeatedly restructured the bureaucracy.

It is not the first sign of trouble at the agency. Several senior ministry officials have also been caught up in an ongoing corruption investigation over water projects. Dody has pledged to support law enforcement efforts.

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CEO for a Day Connects Young Women with Business and UN Leaders

AmCham Indonesia, in collaboration with the United Nations in Indonesia and the UN Global Compact Network Indonesia (IGCN), launched the CEO for a Day Indonesia: Women Shaping Tomorrow program on July 17.

Held at UN Global Pulse in Jakarta, the opening session welcomed 15 young women who will shadow women CEOs, senior business leaders and heads of UN agencies. The initiative gives participants first-hand exposure to leadership, organizational decision-making, workplace culture, and professional development while promoting mentorship, gender equality, youth empowerment and engagement with the Sustainable Development Goals (SDGs).

The launch session brought together the participants, representatives from cooperating organizations and the program’s organizing partners. Participating private-sector organizations included HP Indonesia, HHP Law Firm, AHANA, Bee Well Indonesia, APP Group, Dynapack Asia, TBS Energi Utama, PT Selaras Logistik Indonesia, and Kiroyan Partners. Representing the UN were the UN Resident Coordinator’s Office in Indonesia, UN Women Indonesia, UNESCO, UNHCR and the International Labour Organization (ILO).

Participants discussed their educational and professional backgrounds, experience and interest in sustainable development. Representatives from companies and UN entities introduced their organizations, areas of work and the women leaders taking part in the program.

The session provided an opportunity to align expectations, discuss confidentiality and professional conduct, and prepare participants for their upcoming shadowing experience. Participants also began building connections with the organizations and leaders they will engage with during the program.

Each host organization will develop a tailored agenda for its assigned participant. The shadowing experience may include an organizational orientation, a one-on-one conversation with the CEO or leader, participation in selected meetings, engagement with the leader’s team and a concluding reflection session.

The initiative will conclude with a reception and closing event on Aug 12, held in conjunction with International Youth Day. At the event, participants will share their reflections, key lessons from the experience, and perspectives on the importance of women’s leadership in shaping Indonesia’s future.

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Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Donna Priadi and written by the AmCham Staff.

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