Central bank governor resigns
Perry Warjiyo, governor of Bank Indonesia (BI), has tendered his resignation after seven years in office and less than six months after Thomas AM Djiwandono, nephew of President Prabowo Subianto, was sworn in as deputy governor.
Febrie’s case & high-profile names
Ariseno Ridwan, spokesperson of Hashim Djojohadikusumo (younger brother of President Prabowo Subianto), told Tempo on July 19, 2025 that oil trader Mohammad Riza Chalid (MRC) contacted Hashim twice related to the corruption case being investigated by the Attorney General’s Office (AGO).
Prabowo’s approval slide is corruption warning
President Prabowo Subianto is still supported by a narrow majority of Indonesians, but the latest Saiful Mujani Research and Consulting survey marks the end of his administration’s political comfort. His approval rating fell from 81.2 percent in November 2025 to 51.1 percent in July 2026, while dissatisfaction rose from 16 percent to 46.9 percent.
Week ahead
Escalated tensions in the Middle East remains in the spotlight for the new week as Houthis and Saudi Arabia exchanged attacks, while US-Iran conflict over the Strait of Hormuz intensified and Ukraine-Iran involved in a fresh conflict following an attack on commercial vessel by Ukraine in the Caspian Sea.
Oil retreat, net sell continues
External pressures eased off Friday (Jul 25) as Brent crude oil futures retreated nearly 4% to around US$96.8 per barrel. Foreign investors, however, continued selling pressures on Indonesian equities with net sell of Rp1.36 trillion or US$75.65 million.
Valuation discount on state banks
Shares of Bank Mandiri (BMRI) ended substantially lower by 5.7% to Rp4,130 Friday (Jul 24) just when the state bank reported 24.2% growth in net profit to Rp30.4 trillion in the first half of 2026. It contributed to 1.88% fall of IDX composite index (IHSG).
Indonesia’s defense shopping spree
Indonesia has signed a contract to procure 12 M-346F “Block 20” aircraft from Italian aerospace company Leonardo. This procurement adds to the government’s growing efforts to modernize the country’s defense equipment in recent years, particularly under Prabowo Subianto.
The Constitutional Court’s internet quota ruling is about more than data
For years, millions of Indonesian mobile users have accepted a peculiar business practice as inevitable: unused internet data simply disappears when a package expires. Consumers pay for 50 gigabytes but use only 35. The remaining 15 gigabytes vanish, regardless of whether they were purchased with hard-earned income or needed for work the following day.
External pressures resumed, foreign net sell continues
Brent crude oil futures surged as much as 7% to US$101 per barrel due to escalated tensions in the Middle East. Foreign investors, in the meantime, returned to net sell position on Indonesian equities.
LiuGong heats up heavy equipment market
China-based LiuGong has recently begun the construction of heavy equipment manufacturing facility in Karawang, West Java province with US$317 million of investment (approximately Rp5.2 trillion).