Indonesia has conditionally lifted its ban on Elon Musk's AI chatbot Grok, following a commitment from X Corp to implement stricter content controls and comply with national regulations. The ban, imposed in January over the generation of sexually explicit deepfake images, was rescinded after X submitted a detailed plan for enhanced safety measures and ongoing supervision.
Since mid-January 2026, nearly 2,900 Indonesian nationals have sought consular assistance to return home from Cambodia, fleeing online scam centers. This surge follows a Cambodian government crackdown on illicit operations, prompting many to seek refuge at the Indonesian Embassy in Phnom Penh. Repatriation efforts are underway, with the first group already returned to Indonesia.
Indonesian stocks, led by the Jakarta Composite Index, experienced a sharp two-day decline, wiping out an estimated $80 billion in market value. The sell-off was triggered by MSCI's warning of a potential downgrade due to transparency issues and investor concerns over President Prabowo Subianto's fiscal policies and central bank independence.
Mount Ile Lewotolok in Indonesia's East Nusa Tenggara experienced 38 eruptions within a six-hour period on early Tuesday, January 27, 2026. The volcano, currently at Alert Level III, propelled molten lava 200 meters into the air and emitted ash, prompting authorities to reiterate a three-kilometer exclusion zone around its crater.
Heavy rainfall since January 22 has caused widespread flooding in Jakarta, displacing over 1,600 people from 585 families across 20 urban villages. Authorities are focused on relief efforts, while the Meteorology, Climatology, and Geophysics Agency (BMKG) warns of continued moderate to heavy rains for the upcoming week.
A new report from the Institute for Economics and Peace (IEP) highlights Indonesia's growing stature as a middle power, actively contributing to a fragmented yet evolving global order. The nation's diplomatic initiatives and economic strength are key drivers of this increased influence.
Bank Indonesia maintained its benchmark BI-Rate at 4.75% for the fourth consecutive meeting, a decision made during its January 20-21, 2026, Board of Governors Meeting. The central bank cited the need to stabilize the rupiah exchange rate, manage inflation within its target range, and support economic growth as key factors for the decision. Other rates, including the Deposit Facility and Lending Facility rates, also remained unchanged.
Indonesian President Prabowo Subianto commenced a diplomatic tour, arriving in London for bilateral talks with British Prime Minister Keir Starmer and King Charles III. He is scheduled to proceed to Davos, Switzerland, to deliver a keynote address at the World Economic Forum Annual Meeting on January 22, 2026, marking his first major global economic engagement since taking office.
Indonesia's parliament is considering a move to end direct regional elections for governors, mayors, and regents, potentially reverting to an indirect system where legislative councils elect these leaders. This proposal, championed by President Prabowo Subianto and his coalition, cites cost efficiency and reduced vote-buying, but faces strong opposition from critics who warn of democratic backsliding and increased elite power.
President Prabowo Subianto convened 1,200 academics, including professors, deans, and rectors, at the Presidential Palace in Jakarta on Thursday, January 15, 2026. The closed-door dialogue focused on academic and policy issues within the social sciences and humanities, aiming to integrate these fields into national policy and improve higher education quality.
President Prabowo Subianto announced Indonesia will commence US$6 billion worth of downstreaming projects within weeks. These initiatives, part of a national strategy to accelerate industrialization and boost value from natural resources, are expected to initially involve at least six projects, managed by Danantara.
Indonesia's President Prabowo Subianto has approved the restoration of 2026 budget transfers to Aceh province, amounting to approximately 1.7 trillion rupiah (around US$101 million). This decision, announced by Finance Minister Purbaya Yudhi Sadewa, aims to accelerate post-disaster recovery efforts in Aceh, which was recently hit by severe floods and landslides.
Indonesia has temporarily blocked Elon Musk's Grok AI chatbot, citing concerns over its role in generating AI-powered pornographic content and deepfakes. The Ministry of Communication and Digital Affairs initiated the block on January 10, 2026, making Indonesia the first country to deny access to the AI tool due to these issues.
President Prabowo Subianto announced that Indonesia achieved food self-sufficiency, particularly in rice, in 2025, a year ahead of schedule. The nation produced 34.7 million metric tons of rice, surpassing domestic consumption and eliminating the need for rice imports for household use. This milestone was celebrated at a mass harvest event in Karawang, West Java, highlighting significant progress in national food security.
Indonesia has launched a major investigation into whether decades of deforestation and landscape alteration exacerbated the devastating floods and landslides caused by Cyclone Senyar in northern Sumatra in late 2025. The rare tropical cyclone led to over 1,100 deaths and displaced approximately 1 million people across Aceh, North Sumatra, and West Sumatra, prompting officials to scrutinize the link between environmental degradation and disaster amplification.
Bali is set to implement stricter entry regulations for foreign tourists starting in 2026, focusing on financial capacity and planned activities. This move, announced by Governor Wayan Koster, aims to promote sustainable and quality tourism, shifting the island's focus from visitor quantity to visitor quality amidst growing concerns over unruly behavior and environmental strain.
Padang, West Sumatra, has been severely impacted by flash floods and landslides since early January 2026, following intense rainfall. The disaster, part of a larger crisis across Sumatra since late November 2025, has caused extensive infrastructure damage, including severed roads and destroyed bridges, disrupting travel and clean water supplies. Emergency response efforts are underway.
Bank Indonesia is set to fully replace the Jakarta Interbank Offered Rate (JIBOR) with the Indonesian Overnight Index Average (IndONIA) on January 1, 2026. This move aims to enhance transparency, deepen the domestic funding market, and align Indonesia with global standards for transaction-based interest rate benchmarks, moving away from quotation-based systems. The transition has been underway since 2018.
Indonesia's Mount Semeru in East Java experienced multiple eruptions on Sunday, December 28, 2025, sending ash columns up to 500 meters high. The volcano remains at Level III (Alert) status, prompting authorities to issue warnings regarding exclusion zones and potential hazards.
Indonesia's Coordinating Ministry for Infrastructure and Regional Development, led by Agus Harimurti Yudhoyono, is collaborating with the Meteorology, Climatology, and Geophysics Agency (BMKG) to enhance extreme weather mitigation for the Christmas and New Year 2025-2026 holidays. Measures include intensified monitoring, public advisories, and weather modification operations to address forecasts of heavy rainfall, strong winds, and potential hydrometeorological disasters across various regions.
