Singapore Foreign Minister meets Prabowo in Bid to Ease Tensions
With both sides trying to turn down the temperature on a growing diplomatic dispute over cross border haze, Singapore Foreign Minister Vivian Balakrishnan met with President Prabowo Subianto on Oct 28 at the end of a two-day visit to Jakarta.
Cabinet Secretary Teddy Indra Wijaya said in a statement that the meeting was held at Singapore’s request. No details were disclosed.
Relations between the two neighbors have been strained by growing public frustration in Singapore over toxic haze from forest and land fires that have been burning for months and have reduced regional air quality.
Singapore has sought greater action by Indonesia to halt the fires, including offering firefighting assistance, which has so far been rejected. In return, Indonesian officials have grown testy over the issue and the president has accused unnamed countries of insulting Indonesia.
Last week, Indonesia reduced gas exports to Singapore after Energy Minister Bahlil Lahadalia said the government would reconsider contracts with countries that did not “show respect” to Indonesia. Numerous Indonesian officials have also made pointed remarks about Singapore.
Balakrishnan also met Indonesian Foreign Minister Arrmanatha Nasir on Oct 27. The two announced plans for a joint task force to address the role of corporations in the wildfires. In addition, they discussed the issue of under-invoicing of exports that pass through Singapore, a particular irritant for Subianto.
“This [haze] cooperation is a first step. It is our hope that it can also pave the way to tackle other shared challenges such as under-invoicing. These practices generate revenues that should be [used]… for our people,” Arrmanatha said, standing next to Balakrishnan.
Balakrishnan did not mention under-invoicing but said Singapore wants to see a “prosperous, stable, and peaceful Indonesia.”
Singapore has issued notices to 10 foreign-based agribusiness companies over the fires. On Oct 28, Singaporean senior minister K. Shanmugam held a closed-door meeting with representatives of the 10 companies and said they have a duty to not contribute to the haze, as reported by The Straits Times.
Balakrishnan’s visit was seen by observers as a good sign that both countries wants to keep the dispute from harming relations and disrupting the wider region.
Related Links:
- https://www.thejakartapost.com/world/2026/10/29/singapore-reaches-out-to-cool-diplomatic-row?utm_source=(direct)&utm_medium=home_headlines
- https://jakartaglobe.id/business/indonesia-seeks-singapores-help-against-underinvoicing-amid-tension#google_vignette
- https://en.antaranews.com/news/438455/indonesia-urges-calm-joint-effort-after-singapore-internet-claim
- https://www.cnnindonesia.com/internasional/20261029202921-106-1421190/menlu-vivian-indonesia-dan-singapura-bergantung-satu-sama-lain
US Firms Break Ground on $500 Million Batam Semiconductor Project
Two American companies, Tynergy Technology Group and Essence Global, broke ground on Oct 28 on a $500 million semiconductor investment in Batam.
The investment is part of a $31.6 billion joint venture agreement signed at the US Chamber of Commerce in Washington, DC on Feb 18 during the visit of President Prabowo Subianto.
Akhmad Makruf Maulana, president director of Wiraraja Green Renewable Energy & Smart Eco-Industrial Park (Geseip), said the first phase of the project will occupy a 3-hectare site and is projected to create 1,000 new jobs.
“This represents the initial phase of the investment from the United States, a commitment that has been in the works for some time. We are beginning this within an existing industrial estate, specifically Wiraraja I in Kabil,” Makruf said on Oct 27, as quoted by Bisnis.com.
Besides advancing the local semiconductor industry, the plan also includes the downstream processing of silica, an AI-powered factory and the assembly of sodium-ion batteries.
Once the facilities are operational, the project is slated to expand into the Wiraraja Geseip National Strategic Project (PSN) on Galang Island.
The eventual large-scale project is promising for Indonesia’s future industrialization, Makruf added. It is hoped that the downstream processing of silica into semiconductors will give Indonesia a higher profile in the global supply chain.
“This initiative reflects a shared commitment to supporting sustainable economic growth and reinforcing Indonesia’s position as a competitive destination for industrial investment on the global stage,” Makruf said.
Indonesia has vast reserves of silica sand, but sells much of it in raw form as demand rises. Indonesia lacks both the technology and the industrial base to move beyond basic processing of silica.
In July, Deputy Communications and Digital Minister Nezar Patria warned that Indonesia contributes little to the artificial intelligence supply chain beyond despite sitting on reserves of critical minerals.
"We are nowhere in the global supply chain… We have the manufacturing plants, but the higher-value components and materials are still imported,” Nezar said on July 14.
Related Links:
- https://www.thejakartapost.com/business/2026/10/28/us-firms-break-ground-on-500m-batam-semiconductor-project?utm_source=(direct)&utm_medium=channel_business
- https://metropolis.batampos.co.id/investasi-as-rp8-triliun-masuk-batam-kembangkan-industri-semikonduktor/
- https://sumatra.bisnis.com/read/20261028/534/2016388/investasi-as-us500-juta-di-batam-garap-hilirisasi-silika-dan-semikonduktor
Protesters Rally across Indonesia on Youth Pledge Day
Students and civil society groups demonstrated across Indonesia on Youth Pledge Day, Oct 28, demanding action on forest and peatland fires and raising concerns over civic space under President Prabowo Subianto’s administration.
The protests drew thousands of participants in Jakarta and were organized by the Committee to Save the People’s Sovereignty (SADAR), a coalition of student and civil society groups.
It was the second protest in a week and comes as the president’s approval ratings are falling and tensions have risen with neighboring countries over the persistent haze. Youth Pledge Day commemorates a nationalist pledge made by young Indonesians on Oct 28, 1928, a milestone in the drive for independence.
The coalition presented five demands: declare the forest fires a national emergency; review spending on populist programs; lower education costs and ensure fair access to public services; strengthen anti-corruption efforts; protect freedom of expression, human rights and civic space.
In Jakarta, demonstrators were blocked from reaching the Hotel Indonesia (HI) traffic circle. Protesters described the restrictions as evidence of shrinking civic space. “The Army told us the HI traffic circle is their territory,” Fatimah Azzahra of the University of Indonesia’s Student Union (BEM UI) told the crowd. “Which made me wonder: when has the military ever owned the HI traffic circle? Is it that way now because we have a former soldier as president?”
More than 14,000 police and military personnel were deployed across Jakarta. Protests were also held in Yogyakarta, Makassar and Lampung.
The protests continued in Jakarta on Oct 29, when students from Universitas Trisakti marched along Jalan Medan Merdeka Selatan after being prevented from reaching the Presidential Palace. The students called for national economic recovery, the resignation of multiple cabinet officials and stronger civilian supremacy.
Government Communications Agency Head Syahganda Nainggolan acknowledged the protests and said the government respected free expression.
Yoes Kenawas of the Indonesian Survey Institute said he was “rather pessimistic that the protesters’ concerns will be heard by the government,” citing what he described as a disconnect between conditions on the ground and government statements.
Kevin O’Rourke of Reformasi Weekly argued that democratic safeguards and the rights of political opponents were under pressure. “Prabowo has a free hand. And so it’s very ugly and very unpredictable, volatile,” he said.
Related Links:
- https://www.thejakartapost.com/indonesia/2026/10/29/students-return-to-streets-as-anger-swells-over-wildfires-shrinking-civic-space?utm_source=(direct)&utm_medium=home_headlines
- https://www.theguardian.com/world/2026/oct/29/indonesia-protests-fire-haze-economy
- https://news.okezone.com/read/2026/10/29/338/3250929/ribuan-mahasiswa-trisakti-bergerak-ke-irti-monas-lalu-lintas-kebon-sirih-padat
- https://nasional.kompas.com/read/2026/10/28/19171611/bakom-ri-merespons-demo-hari-ini-pemerintah-hargai-aspirasi-mahasiswa?page=all#page2
KPK Raids Djarum HQ as Corruption Law Revision under Discussion
The Corruption Eradication Commission (KPK) searched the offices of tobacco giant Djarum Group in Central Java on Oct 28 as part of a probe into alleged bribery involving customs and excise officials.
The commission also searched the Kudus Regional Customs and Excise Office as part of the investigation, said KPK spokesperson Budi Prasetyo.
It is not clear why Djarum was targeted by the KPK.
“KPK expanded our previous investigation on alleged corruption pertaining to customs and excise by issuing a new investigation warrant per October,” Budi said on Oct 28.
Investigators seized documents and electronic evidence from both locations.
The new warrant does not include the names of any suspects. Budi said the KPK was trying to determine if Djarum representatives had paid off customs officials over cigarette excise stamps.
The antigraft body expanded the investigation after the arrest of three customs and excise officials in February. The Jakarta Corruption Court sentenced one of those arrested to two years in prison and a Rp 300 million (US$16,539) fine. Other trials are ongoing.
The KPK has now shifted the focus of the investigation into alleged corruption pertaining to cigarette excise payments involving Djarum, Indonesia’s second largest tobacco company.
When asked if representatives of Djarum will be summoned for questioning, Budi said the KPK would proceed gradually. “We started from searches before continuing to question related parties or witnesses,” Budi said.
A Djarum Group spokesperson said on Oct 28 that the company would “respect and abide by the law” and pledged to cooperate with the investigation, as quoted by Tempo.
Meanwhile, the government is considering revisions to the anticorruption law to improve legal certainty and the investment climate. The changes may involve clarifying the definition of state losses and being more specific about corruption offences.
The proposal was discussed between National Economic Council (DEN) chairman Luhut Pandjaitan and Coordinating Law, Human Rights, Immigration and Correctional Services Minister Yusril Ihza Mahendra behind closed doors on Oct 27.
Yusril told a press conference that revising the corruption law could improve legal certainty and help protect the country's reputation among investors.
Related Links:
- https://www.thejakartapost.com/indonesia/2026/10/29/kpk-searches-djarums-office-in-excise-graft-probe?utm_source=(direct)&utm_medium=channel_indonesia
- https://en.tempo.co/read/2122560/how-pt-djarum-responded-to-the-kpk-office-search
- https://voi.id/en/amp/600596
- https://www.cnnindonesia.com/nasional/20261029224700-12-1421226/kpk-kerugian-negara-korupsi-cukai-terkait-pt-djarum-capai-triliunan
- https://www.thejakartapost.com/indonesia/2026/10/28/government-weighs-changing-corruption-law-to-boost-investment-climate
Free Meals get Regional Oversight; Cooperatives Face Legal Challenge
The government has instructed regional governments to oversee the Free Nutritious Meals (MBG) program, while the Red and White Cooperatives (KDMP) program faces a legal challenge in the Constitutional Court.
Home Affairs Minister Tito Karnavian issued a circular on Oct 28 ordering provinces, districts and cities to monitor compliance with standards at the troubled MBG kitchens operated by the National Nutrition Agency (BGN). Tito said local governments could receive incentives of up to Rp 3 billion ($165,007) for the oversight task from a Rp 1 trillion fund to be distributed in three batches this year.
Some 230 local governments have established task forces, while Tito gave the remaining regions one week to comply. BGN Head Sudaryono described the task forces as the “local police chiefs of the BGN.”
The Association of Regency Regional People’s Representative Councils of Indonesia (ADKASI) supported the move, with its chairman, Siswanto, saying the task forces could help ensure the program reaches its intended beneficiaries.
However, the Executive Director of Regional Autonomy Watch (KPPOD), Herman Suparman, questioned whether all local governments have sufficient capacity to take on additional oversight responsibilities. “Don’t just impose burdens without sufficient support,” he said on Oct. 29, noting that regional finances were already under pressure following cuts to regional transfers.
Bhima Yudhistira of the Center of Economic and Law Studies (CELIOS) described the proposed incentives as a “misleading tactic” that could shift responsibility for the program, including potential accountability for mismanagement, from the central government to regional administrations. He argued that regional oversight would not address the program’s underlying difficulties.
Separately, a group of petitioners challenged the village cooperatives program in the Constitutional Court on Oct 29. The petitioners argued that decisions on village-level programs and spending should be based on community consensus not government orders.
“The central government can’t assume that it knows best what every village needs,” Muhammad Saleh, a lawyer representing the petitioners, said on Oct 28. “Some communities need road repairs and better irrigation systems, while others need school support, health services or support for the local economy.”
The petition seeks a review of provisions in the Village Law, Cooperatives Law and Central-Regional Fiscal Relations Law governing cooperatives and the central government’s authority to direct the use of village funds.
Cooperatives Minister Ferry Juliantono said the government would continue implementing the program despite the petition. “If we happen to be invited [to the hearing], we’ll certainly attend,” he said on Oct 28.
Related Links:
- https://www.thejakartapost.com/indonesia/2026/10/30/govt-passes-buck-on-free-meals-oversight?utm_source=(direct)&utm_medium=home_headlines
- https://www.thejakartapost.com/indonesia/2026/10/30/prabowos-cooperatives-program-faces-legal-challenge?utm_source=(direct)&utm_medium=home_headlines
- https://www.tempo.co/politik/kepala-desa-di-klaten-gugat-kopdes-merah-putih-ke-mk-2302272
- https://ekonomi.republika.co.id/berita/tno9ag416/adkasi-dorong-satgas-mbg-perkuat-pengawasan-dan-kolaborasi
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PwC Indonesia Digital Trust Insights 2027: Indonesia’s cyber priorities in an era of AI
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