AmCham Update Vol. 7 #092

Protests Turn Violent, DPR Approves Destry as New BI Governor, Purbaya Outlines 2027 Budget for DPR, Salary Delays at Pos Indonesia, Danantara to Get Involved in Data Centers, Gov’t to Monitor Foreigners with AI and Drones

Aug 28, 2026

Starting September 2026, AmCham Update will now be published twice a week, every Tuesday and Friday.

Jakarta Protests Turn Violent, Unrest Lingers into the Night

A demonstration outside Indonesia’s House of Representatives (DPR) on Aug 27 escalated into clashes with police by nightfall, with unrest continuing into the next morning near the Slipi flyover.

The day started out peacefully as the United Pati People’s Alliance (AMPB), formed the bulk of demonstrators and called for passage of the long-stalled Asset Forfeiture Bill and tougher penalties for corruption offenses. AMPB coordinator Supriyono said the group’s demands were limited to anti-corruption measures and did not call for President Prabowo Subianto’s removal.

House leaders, including Deputy Speaker Sufmi Dasco Ahmad, met AMPB representatives and signed a formal commitment pledging a plenary vote on the bill by Dec 15. Dasco and two other deputy speakers said they were prepared to resign if the deadline was not met.

The meeting prompted AMPB representatives to leave around midday, but thousands of other protesters remained near the DPR complex. Police said the remaining crowd appeared more focused on causing damage than expressing grievances. Officers later used water cannons and tear gas to disperse crowds in the area.

In a separate demonstration at the DPR, the Alliance of the People’s Protest Movement (GERAM) listed 10 demands, including opposition to the military presence in government and support for democratic institutions. It also called for the suspension of the Free Nutritious Meals and Red and White Cooperatives programs.

Authorities deployed more than 18,000 personnel and closed roads around the DPR complex, anticipating possible unrest, according to Jakarta Police Chief Reynold Hutagalung. Police detained 65 people before the rally began, citing suspected plans to incite disorder.

By nightfall, a police post was set on fire, while surveillance cameras were destroyed as clashes spread to nearby roads, damaging vehicles and public infrastructure.

As of Aug 28, authorities were still surveying the damage and transport disruptions continued in parts of Jakarta.

The Jakarta Composite Index on Aug 28 gave up its modest gains from the previous day and closed at 6,518.12, down 3.63 percent.

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DPR Approves Destry as New BI Governor

As expected,House of Representatives’ (DPR) Commission XI has approved Destry Damayanti as Bank Indonesia (BI) governor for a full five-year term from 2026 to 2031. The decision was announced on Aug 27 by Commission XI Chairman Muhammad Misbakhun at the DPR complex in Jakarta.

Destry has been serving as acting governor since the sudden July resignation of former governor Perry Warjiyo. She was the sole nominee put forward for the post by President Prabowo Subiyanto.

“Through a decision in internal meetings, we have determined that Ibu Destry Damayanti is to become Bank Indonesia governor for the period of 2026 to 2031,” Misbakhun said.

The commission also approved other changes to BI’s senior leadership, Deputy Governor Aida S. Budiman will replace Destry as senior deputy governor. Solikin M. Juhro will take over Aida’s position as deputy governor.

The fit and proper test for the three candidates was conducted over two days this week.

Although the appointments have been approved by Commission XI, the three candidates must still get the formal nod from a DPR plenary session, which is planned for Sep 1, Misbakhun said.

Destry is expected to continue the policy emphasis of Perry. She has said she supports financial stability and also endorses BI’s role in promoting economic growth.

The position of BI chair is closely watched by investors, who want to see stability, independence and predictability in BI policies.

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Purbaya tells DPR 2027 Budget will Spur Growth despite Global Headwinds

Finance Minister Purbaya Yudhi Sadewa has told the House of Representatives (DPR) Budget Committee that problems in the world economy will likely continue in 2027.

"The global economy in 2027 is expected to face complex dynamics and high levels of uncertainty," he said during a working meeting at the DPR on Aug 27.

Purbaya said that despite the headwinds, the Indonesian economy remains stable and resilient. In the first half of 2026, Purbaya said, economic growth reached 5.45 percent year-on-year bolstered by heathy domestic consumption, rising investment and government policies.

Purbaya told lawmakers that the 2027 State Budget Draft (RAPBN) should accelerate economic growth with fiscal strategies focused on eight priority clusters, which include food security, energy and water self-sufficiency, education, healthcare, industrial downstreaming, housing, and village development.

For 2027, Purbaya said, the government will maintain the health and credibility of the state budget. "[This will be achieved] by boosting state revenue, refining expenditure efficiency, and pursuing innovative [and] prudent budget financing," he said.

Under the budget assumptions for 2027, the government is hoping to reach 6 percent economic growth and an inflation rate of 2.5 percent. The rupiah exchange rate is projected at 17,500 per US dollar. The state revenue-to-GDP ratio is projected at 12.25 percent, while the government debt ratio will be maintained within safe thresholds.

The poverty rate in 2027 is targeted at 6-6.5 percent and the unemployment rate at 4.30-4.87 percent.

Total state revenue is predicted to reach Rp 3,426.0 trillion ($194 billion), a 6.8 percent increase from the previous year. This figure comprises tax revenue of Rp 2,908.0 trillion, non-tax state revenue of Rp 517.4 trillion, and grant revenue of Rp 700 billion.

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Pos Indonesia Delays Salaries as Financial Woes Deepen

Indonesia’s state-owned post office company, Pos Indonesia, is in danger of missing a Sep 1 deadline to pay the salaries of its 31,000 employees if it cannot come up with Rp 158 billion (US$8.9 million), lawmakers have warned.

House of Representatives (DPR) Commission VI Chairwoman Anggia Ermarini said on Aug 26 that paying already delayed salaries is the immediate priority.

Anggia told reporters that the DPR leadership contacted the Finance Ministry about the issue on Aug 12. She said lawmakers had met with representatives of Pos Indonesia employees, who complained about late salary payments.

According to Anggia, the Rp 158 billion is owed to Pos Indonesia by the Social Affairs Ministry, based on an audit. The money is expected to be used for salaries.

“It should be done as soon as possible, because this concerns people's livelihoods, their salaries and their families. This is a receivable, a debt. It is not a bailout,” she said.

Pos Indonesia's financial performance deteriorated sharply in 2025 after the government reduced orders for logistics and food-aid distribution, which had previously kept the company afloat.

The company's operating revenue fell about 20 percent year-on-year to Rp 3.97 trillion in 2025, just 63 percent of its Rp 6.2 trillion target for the year. Net profit dropped to Rp 306 billion, well below its Rp 860 billion target.

In July, the company also missed a sukuk bond payment of Rp 24.12 billion, which prompted the Indonesian Central Securities Depository (KSEI) to postpone the distribution of returns to sukuk holders.

In response, Fitch Ratings downgraded Pos Indonesia’s long-term rating from “A” to “C” and cut the company’s credit profile. Pos Indonesia subsequently settled the overdue payment along with compensation for the delay.

The company has operated for about 280 years and is Indonesia's oldest state-owned enterprise.

Anggia said the government and Danantara need a long-term plan rather than relying on short-term funding to plug the holes in Pos Indonesia’s finances.

“There needs to be a joint commitment between management, the 31,000 employees and Danantara to restore the health of Pos Indonesia,” she said.

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Data Center Shortage Prompts Danantara to Get Involved

With demand for data centers surging and customers experiencing delays in getting the space they need, Danantara Chief Technology Officer Sigit Puji Santosa said new data center capacity could be absorbed by the market almost immediately.

“If we build 100 megawatts or 200 megawatts of capacity, it will be taken up immediately,” Sigit said on Aug 27 in Jakarta.

“Demand for data centers is extraordinarily high, creating a shortage. Customers have to wait six months, or even up to a year,” Sigit said.

Indonesia has around 45 large-scale data centers, but existing capacity cannot keep up with growing digital infrastructure needs, according to Sigit.

Sigit said accelerating global demand is creating opportunities for Indonesia’s digital sector and Danantara plans to support digital infrastructure development with the technology and components required by the data center industry.

Danantara is also focusing on semiconductor development, particularly the high-capacity chips needed for artificial intelligence, he said.

Danantara has established a partnership with UK-based semiconductor company Arm Holdings to develop chip designs, with several Indonesian state-owned enterprises also involved in the initiative.

"We are now working on design of the chips together with Arm so that later we will not have to queue anymore," Sigit said.

However, Indonesia still faces significant obstacles to expanding its digital infrastructure, including constraints on electricity supply as well as complex processes and regulations. “The challenges are considerable, but so are the opportunities,” Sigit said.

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Gov’t to Monitor Foreigners with AI and Drones

The Directorate General of Immigration will use digital technology, including artificial intelligence (AI) and drones, to monitor foreign nationals in the country.

"Going forward, technology will account for 70 percent of the backbone of immigration services," Immigration Director General Hendarsam Marantoko said at the opening of an Immigration Lounge service at the Discovery Kuta shopping center in Bali on Aug 27.

In addition to AI, the immigration office will use other digital technologies, including drones to monitor border areas.

"We have a program called the digital fence, using drones in certain areas, especially through the back roads. So, people's entry and exit will be monitored," Hendarsam said.

In addition, foreigners arriving in Bali through I Gusti Ngurah Rai International Airport undergo enhanced procedures that use facial recognition technology to identify each traveler.

He added that his office is developing immigration technology procedures to be used through 2045.

As part of its enhanced oversight of foreign nationals the Immigration Directorate is also bringing its services closer to the public. In Bali, for example, his office is opening immigration services for the first time in areas with high concentrations of foreign tourists, such as shopping centers in Kuta.

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Member Announcement | Visa Worldwide

Visa and MRT Jakarta Inaugurate Visa Blok A MRT Station

Visa, a global leader in digital payments, and PT MRT Jakarta, inaugurated the Visa Blok A MRT Station, continuing a strategic partnership to expand access to globally standardized contactless payments for use in Jakarta’s public transportation network.

The inauguration follows the launch of acceptance for Visa credit cards and other EMV-based cards across the MRT Jakarta network, providing passengers with an additional payment option that is fast, convenient, and complementary to existing payment methods.

The initiative comes as urban mobility rises in Jakarta. PT MRT Jakarta recorded 4.5 million passengers in June, averaging 150,302 passengers per day. Research by the Visa Economic Empowerment Institute also found that contactless payment methods can help commuters in major cities avoid queues and enjoy smoother daily journeys.

“Open-loop payments, which allow passengers to pay directly using globally standardized cards without requiring a dedicated ticket or transit card, are an important part of modern urban mobility,” said Vira Widiyasari, Country Manager for Visa Indonesia. She added that Visa’s Global Urban Mobility Study found that three in five respondents would use public transportation more frequently if easy and integrated payment experiences were available across different modes.

Tuhiyat, President Director of PT MRT Jakarta, said the partnership brings the number of North-South Line stations participating in the Station Naming Rights program to 11. He said the program is an innovative public-private partnership that enables collaboration with businesses in public spaces.

The expanded payment option allows riders to use their existing Visa cards on the MRT Jakarta network. The collaboration supports Jakarta’s ambition to become a more connected global city by modernizing public transportation and providing secure, convenient, and globally standardized payment solutions.

Get to Know Our Members | INDOMOBIL NATIONAL DISTRIBUTOR, PT.

PT Indomobil (PT IND), part of the Indomobil Group, is the authorized brand holder and distributor for Citroën, Jeep and Chinese EV maker Leapmotor in Indonesia. The company reintroduced Citroën to the Indonesian market in 2022, added Jeep to its portfolio in 2025 under the Stellantis brand network, and launched Leapmotor in Indonesia in August 2026.

PT IND manages a diverse range of vehicles with integrated sales, marketing, logistics, customer relations and after-sales operations. Guided by its vision to become a reliable and trusted automotive company, PT IND is committed to strengthening its capabilities, enhancing customer satisfaction, and delivering sustainable value to its customers, partners, and stakeholders.

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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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