Indonesia Business Post

The Islamic Republic of Iran is actively seeking to strengthen technological and economic ties with Indonesia, even as it faces geopolitical pressure and potential trade penalties from the United States. Iranian Ambassador to Indonesia Mohammad Boroujerdi confirmed that Tehran is working to facilitate direct business-to-business engagement between companies in both countries.

A Frontier in “Self-Reliant” Technology

Boroujerdi characterized Iran as a leader in “self-reliant” innovation, a capability he attributes to decades of economic isolation and sanctions. Several sectors have been identified for immediate cooperation, including nanotechnology and biotechnology, healthcare and medical equipment manufacturing, peaceful nuclear and agricultural technologies, and aviation and drone systems.

Boroujerdi emphasized the potential for civilian applications of drone technology, stating, “When we discuss drones, the conversation often leans toward a single application. However, there are vast, peaceful opportunities for drone integration in agriculture and other vital sectors.”

Pushing Back Against US Pressure

This diplomatic initiative comes as US President Donald Trump proposed a 25% tariff in January 2026 on countries that continue trade relations with Iran. Boroujerdi urged Indonesia to resist this pressure, stating, “We tell Indonesia: do not be afraid. They cannot dictate rules to the modern world.” He noted that over 100 countries currently maintain economic ties with Iran, and that “Independent nations like Indonesia and Iran must sustain regular economic exchange to prevent further global fragmentation.”

Focus on Technology Transfer

Iran’s proposal extends beyond conventional trade to include technology transfer and human capital development. The Embassy is offering to establish Iranian-backed production facilities in Indonesia, provide full scholarships for Indonesian students to study advanced scientific fields at Iranian universities, and offer technical training programs for Indonesian engineers in Iranian industrial facilities.

Reinforcing Diplomatic Ties

The renewed engagement also coincides with the 47th anniversary of the Islamic Revolution. Indonesian Foreign Minister Sugiono recently conveyed Jakarta’s continued support for Tehran, sending a message to his Iranian counterpart, Seyyed Abbas Araghchi, praising the “solidarity and shared historical foundations” between the two nations.

Frequently Asked Questions

What sectors is Iran prioritizing for cooperation with Indonesia?

Iran has identified nanotechnology and biotechnology, healthcare and medical equipment manufacturing, peaceful nuclear and agricultural technologies, and aviation and drone systems as priority sectors for immediate bilateral cooperation.

What is Iran’s response to the proposed US tariffs?

Iranian Ambassador Mohammad Boroujerdi urged Indonesia to remain undeterred by the proposed 25% tariff, stating that the US “cannot dictate rules to the modern world.”

What is Iran offering in terms of technology transfer?

Iran is offering to establish Iranian-backed production facilities in Indonesia, provide full scholarships for Indonesian students, and offer technical training programs for Indonesian engineers.

As Indonesia and Iran explore deeper economic and technological collaboration, how might regional dynamics and international pressures shape the future of this partnership?

A growing chorus of Indonesian Islamic organizations and political figures are calling on the government to take a more assertive international role in de-escalating the conflict involving the United States, Israel, and Iran. These calls, which intensified in March 2026, reflect a broad consensus across Indonesian society that the nation should move beyond a position of passive diplomacy.

Shifting Expectations for Indonesia’s Role

The Majelis Ulama Indonesia (MUI) has been particularly vocal, condemning actions by the U.S. And Israel as violations of international law and advocating for a stronger diplomatic response. The MUI has too urged the government to withdraw from the U.S.-linked “Board of Peace” (BoP), citing a loss of credibility for the initiative as a neutral platform.

Indonesia’s two largest Islamic organizations, Nahdlatul Ulama (PBNU) and Muhammadiyah, have also expressed support for stronger engagement, though without endorsing confrontation. PBNU, led by Yahya Cholil Staquf, has encouraged Jakarta to utilize its diplomatic channels, including its role in multilateral initiatives and its leadership within the D-8 group of Muslim-majority economies, to press for de-escalation and potentially reach out to Tehran.

Muhammadiyah has emphasized diplomacy as the only viable path forward, advocating for increased coordination with international institutions like the United Nations and the Organization of Islamic Cooperation (OIC), even as urging restraint from all parties involved.

Beyond religious organizations, the Center for Islamic Studies in Finance, Economics, and Development (CISFED) has argued that Indonesia’s “independent and active” (bebas aktif) foreign policy provides a foundation for a more prominent role – not as a sole mediator, but as a convener of neutral states.

Lawmakers from the Indonesian Democratic Party of Struggle and Prosperous Justice Party have echoed these sentiments, urging President Prabowo Subianto to adopt a firmer and more independent stance, with some explicitly calling for Indonesia to lead a coalition of non-aligned Muslim-majority nations.

This convergence of opinion suggests a shifting expectation of Indonesia’s role on the global stage. Rather than acting as a traditional mediator, Jakarta is being encouraged to organize and lead a broader coalition capable of amplifying diplomatic pressure.

However, this push also acknowledges a structural limitation: while Indonesia possesses credibility as a non-aligned actor, it lacks direct leverage over the major powers shaping the conflict. Indonesia’s potential role may therefore lie in mobilizing a coalition of neutral voices to reinforce calls for de-escalation and shape global opinion.

Frequently Asked Questions

What is the Board of Peace?

The Board of Peace (BoP) is a U.S.-linked initiative that Indonesia’s Majelis Ulama Indonesia (MUI) believes has lost its credibility as a neutral platform.

What is Indonesia’s “independent and active” foreign policy?

The Center for Islamic Studies in Finance, Economics, and Development (CISFED) argues that Indonesia’s “independent and active” (bebas aktif) foreign policy provides a foundation for taking on a more prominent international role.

Which organizations are calling for Indonesia to take a stronger role?

The Majelis Ulama Indonesia (MUI), Nahdlatul Ulama (PBNU), Muhammadiyah, the Center for Islamic Studies in Finance, Economics, and Development (CISFED), and lawmakers from the Indonesian Democratic Party of Struggle and Prosperous Justice Party are all urging Indonesia to take a more assertive international role.

As domestic pressure intensifies, the challenge for Jakarta will be to translate these expectations into a form of diplomacy that is both credible and effective, without overextending its reach on one of the world’s most complex geopolitical fault lines.

Semuel Abrijani Pangerapan, former Director General of Informatics Applications (Aptika) at the Ministry of Communication and Informatics (now the Ministry of Communication and Digital Affairs), has been sentenced to six years in prison. The Jakarta Central District Court found Pangerapan guilty of accepting bribes connected to the corruption surrounding the Temporary National Data Center (Pusat Data Nasional Sementara, PDNS) project.

The Verdict and Penalties

Judge Lucy Ermawati ruled on Tuesday, March 10, 2026, that Pangerapan was “legally and convincingly proven guilty” of participating in a corruption conspiracy. In addition to the prison sentence, Pangerapan was fined Rp500 million (US$30,000), with the possibility of 140 additional days in prison if the fine is not paid.

The court also ordered Pangerapan to pay Rp6.5 billion (US$384,000) in restitution. However, as he had already returned Rp6 billion (US$354,000) during the investigation, he is now responsible for the remaining Rp500 million, or an additional six months in prison.

The Bribery Scheme and its Impact

The court determined that the Rp6.5 billion (US$384,000) bribe from Alfi Asman of PT Aplikanusa Lintasarta was a kickback to secure the company’s involvement in government digital infrastructure projects between 2020 and 2022. These illicit dealings resulted in estimated state losses of Rp140.86 billion (US$8.3 million), with PT Aplikanusa Lintasarta benefiting from inflated procurement arrangements and substandard project outcomes.

Sentencing of Co-Conspirators

Pangerapan was not the only individual sentenced in connection with the PDNS project. Bambang Dwi Anggono, Director of Government Informatics Services at the Ministry, received a nine-year prison sentence and a Rp1.5 billion (US$88,500) fine. Alfi Asman was sentenced to six years in prison, while Pini Panggar Agusti, an Account Manager at PT Dokotel Teknologi, received a six-year sentence and a Rp1 billion (US$59,000) fine. Nova Zanda, a Commitment-Making Officer at the Ministry, was sentenced to five years in prison.

Legal Considerations and Potential Appeals

Judge Ermawati stated that Pangerapan’s actions undermined efforts to strengthen digital governance and combat corruption, causing significant financial damage to the state. The court’s sentences were slightly less severe than the prosecution’s requests of seven years for Pangerapan and ten years for Bambang Dwi Anggono. The defendants and prosecutors both have a seven-day window to consider filing an appeal.

The convictions were made under Article 603 of Indonesia’s National Criminal Code (KUHP) in conjunction with the Anti-Corruption Law (Law No. 31/1999 as amended by Law No. 20/2001), which allows for penalties of up to 20 years in prison or life imprisonment, and fines up to Rp1 billion.

Frequently Asked Questions

What was Semuel Abrijani Pangerapan convicted of?

Semuel Abrijani Pangerapan was convicted of participating in a corruption conspiracy related to the Temporary National Data Center (PDNS) project, specifically accepting a bribe.

How much money was involved in the bribery scheme?

The bribery scheme involved a Rp6.5 billion (US$384,000) bribe paid by Alfi Asman, former Business Director of PT Aplikanusa Lintasarta.

What is the maximum penalty under the relevant laws?

Under Article 603 of Indonesia’s National Criminal Code (KUHP) and the Anti-Corruption Law, the maximum penalty for corruption-related offenses involving state officials is up to 20 years in prison or life imprisonment, and fines up to Rp1 billion.

As Indonesia continues to develop its digital infrastructure, how might this case influence future government procurement processes and oversight mechanisms?

Indonesian President Prabowo Subianto and Jordan’s King Abdullah II met in Amman on Wednesday, February 25, 2026, to discuss enhanced cooperation in addressing the humanitarian crisis in Gaza and pursuing a lasting resolution to the Palestinian conflict.

Strengthening Cooperation

The leaders agreed to increase coordination and strategic cooperation in responding to the situation in Gaza. President Prabowo emphasized Indonesia’s commitment to international peace initiatives, including its participation in the Board of Peace and support for a 20-point plan proposed by U.S. President Donald Trump.

President Prabowo highlighted Jordan’s crucial geographic and political position, bordering the West Bank and being close to the conflict zone, as vital for effective humanitarian efforts. He stated, “I thank Your Majesty for the offer of support for our contingent. We look forward to close coordination and cooperation, as you are closest to the issue in Gaza.”

The President also expressed concern regarding escalating tensions in the West Bank, warning that such developments could hinder stabilization efforts in Gaza. He called for increased communication between Indonesia and Jordan to better understand the situation and respond effectively.

Both leaders reaffirmed their support for a two-state solution as the path toward lasting peace in the region. King Abdullah II welcomed Indonesia’s commitment and expressed Jordan’s readiness to support Jakarta’s efforts to assist the Palestinian people.

King Abdullah II acknowledged Indonesia’s political and economic importance in promoting regional stability, stating, “The role of your nation in all the challenges in the region is very important.” He also emphasized the enduring close relationship between the two countries, describing Jordan as “your second home.”

Frequently Asked Questions

What was the primary focus of the meeting between President Prabowo and King Abdullah II?

The primary focus of the meeting was to enhance coordination and strategic cooperation in responding to the humanitarian situation in Gaza and to discuss a path toward a lasting solution to the Palestinian conflict.

What role does Jordan play in the efforts to address the situation in Gaza?

Jordan’s geographic and political position, bordering the West Bank and being close to the conflict zone, is considered crucial for ensuring that humanitarian efforts are carried out effectively.

What is Indonesia’s long-standing position on the Palestinian conflict?

Indonesia consistently supports a two-state solution as the path toward lasting peace in the region.

As both nations continue to strengthen their strategic partnership, will this increased collaboration lead to tangible improvements in the delivery of humanitarian aid and progress toward a peaceful resolution in the region?

Indonesia is bracing for potential economic shifts following a U.S. Supreme Court decision rejecting President Donald Trump’s global tariff policy. President Prabowo Subianto stated on Saturday, February 21, 2026, that his government is prepared for all possible outcomes.

Trade Agreement Remains in Effect

Prabowo, who was in Washington, D.C. With Cabinet ministers to attend the inaugural meeting of Trump’s Gaza Board of Peace, affirmed, “We are prepared for all possibilities. We respect domestic politics of the United States, and we will monitor the developments.” During the visit, Indonesia and the U.S. Signed a trade agreement reducing tariffs on Indonesian exports from 32 percent to 19 percent.

Despite the Supreme Court ruling, Indonesia’s chief negotiator for U.S. Tariffs, Airlangga Hartarto, indicated the recently signed trade deal remains in force. He explained that nations with existing trade agreements with the U.S. Are likely to be treated differently than those without.

Safeguarding Indonesian Exports

Indonesia has formally requested the U.S. Maintain tariff exemptions for key exports, including palm oil, coffee, and cocoa. The Indonesian government plans to closely monitor policy changes in Washington while working to protect its export interests and uphold commitments under the new trade agreement.

Frequently Asked Questions

What was the U.S. Supreme Court’s decision?

The U.S. Supreme Court rejected President Donald Trump’s global tariff policy.

What trade agreement was recently signed between Indonesia and the U.S.?

A trade agreement was signed reducing tariff rates on Indonesian exports to 19 percent from the previous 32 percent.

What is Indonesia doing to protect its exports?

Indonesia has requested the U.S. Maintain tariff exemptions for palm oil, coffee, and cocoa, and will continue to monitor policy shifts in Washington.

How might this ruling impact global trade dynamics in the long term?

The newly formed Board of Peace, initiated by Donald Trump at the World Economic Forum in Davos, is facing early challenges as several international actors express reservations about its structure and intent.

A Shifting Mandate

Initially conceived to oversee the Gaza ceasefire and subsequent reconstruction following the Hamas–Israel conflict, the Board of Peace’s scope has broadened to encompass a wider range of international conflicts. Donald Trump chairs the body, and its inaugural meeting is scheduled for February 19, 2026, in Washington, D.C., with a primary focus on Gaza’s reconstruction.

Membership in the Board requires aspiring permanent members to contribute US$1 billion. The invitation extended to Vladimir Putin, whose country invaded Ukraine in 2022, has sparked debate regarding the Board’s political implications.

Reservations and Alternative Approaches

While largely comprised of U.S. Allies, the Board has encountered resistance. Italy and the European Union will attend the Washington meeting as observers, not members. The Holy See has formally declined participation, with Vatican Secretary of State Cardinal Pietro Parolin emphasizing the importance of the United Nations maintaining its role in global crisis management.

Mexico has also rejected full membership, citing the absence of Palestinian representation within the Board’s structure. This decision reflects concerns among nations in the Global South regarding the need for inclusive representation in governance mechanisms addressing Middle Eastern conflicts.

Israel, Indonesia, and Diplomatic Calibration

Israel has joined the Board of Peace as its 22nd member, following discussions between Prime Minister Benjamin Netanyahu and U.S. Secretary of State Marco Rubio. This development presents a complex diplomatic situation for Indonesia.

Indonesia has affirmed that its participation does not signify political normalization with Israel. Foreign Ministry spokesperson Yvonne Mewengkang stated that Indonesia’s involvement is limited to stabilization, civilian protection, humanitarian assistance, and Gaza’s reconstruction, and does not alter Indonesia’s position on Palestine.

The Indonesian Navy is preparing to deploy hospital ships and specialized Marine medical and engineering units, prioritizing visible humanitarian leadership.

A New Global Governance Model?

The emergence of the Board of Peace reflects a broader trend of alternative diplomatic platforms gaining traction as confidence in traditional multilateral institutions fluctuates. However, the Board’s success hinges on perceptions of neutrality, representational balance, and institutional credibility.

Frequently Asked Questions

What is the primary focus of the Board of Peace’s inaugural meeting?

The inaugural meeting, scheduled for February 19, 2026, in Washington, D.C., will primarily focus on Gaza’s reconstruction.

What was the Vatican’s reason for declining membership?

The Holy See declined membership, emphasizing that global crisis management should remain under the mandate of the United Nations.

What is Indonesia’s position regarding its participation in the Board of Peace?

Indonesia has reaffirmed that its participation does not constitute political normalization with Israel and is strictly tied to stabilization, civilian protection, humanitarian assistance, and Gaza’s reconstruction.

As the Board of Peace navigates these initial challenges, will its ability to foster genuine collaboration and address complex geopolitical issues ultimately outweigh concerns about its structure and representation?

President Prabowo Subianto met with 22 business leaders from the Indonesian Employers Association (Apindo) on Monday, February 9, 2026, to discuss strengthening the Indonesian economy through increased collaboration between the public and private sectors.

Indonesia Incorporated: A Recent Vision for Economic Growth

State Secretary Prasetyo Hadi stated the meeting, held at Padepokan Garudayaksa in Hambalang, Bogor, covered a range of topics focused on economic development. The President, according to Prasetyo, consistently seeks input from all parties and welcomed the opportunity to discuss matters with business leaders.

A key outcome of the meeting was agreement on the concept of “Indonesia Incorporated,” which emphasizes the importance of a strong private sector supported by government collaboration. Prasetyo explained that economic growth is fundamentally linked to the success of private sector entrepreneurs.

Discussions likewise centered on enhancing Indonesia’s global competitiveness, particularly in labor-intensive industries like textiles, garments, and footwear. Prasetyo noted the need to shift focus from relying solely on the domestic market to competing on a global scale, acknowledging that neighboring countries are currently capturing market share.

Focus on Job Creation and Strategic Sectors

President Prabowo stressed that industrial development must benefit the public by creating employment opportunities and strengthening national self-reliance. He encouraged entrepreneurs to prioritize job creation, particularly within the “real sector” of the economy.

Specific industries highlighted for expansion included textiles, garments, footwear, furniture, food and beverages, fisheries, livestock, and micro, compact, and medium enterprises (MSMEs). The 22 business leaders in attendance – including Sofjan Wanandi, Sudamek, and Haryanto Adikoesoemo – expressed their commitment to supporting the President’s vision.

The business leaders also voiced support for initiatives aimed at alleviating poverty through improved nutrition and quality education for Indonesian children, alongside continued industrialization efforts.

Frequently Asked Questions

What was the primary focus of the meeting between President Prabowo and Apindo leaders?

The primary focus was to discuss collaboration between the government and private sector to strengthen the Indonesian economy and create employment opportunities.

What is the “Indonesia Incorporated” concept?

“Indonesia Incorporated” is a concept agreed upon during the meeting, emphasizing the importance of a strong private sector supported and encouraged by the government to drive economic growth.

Which industries were specifically highlighted for expansion?

Textile-related industries such as garments, footwear, and furniture, as well as food and beverages, fisheries, livestock, and micro, small, and medium enterprises (MSMEs) were specifically highlighted for expansion.

As the government and business leaders move forward with this collaborative vision, will Indonesia be able to effectively compete in the global market and deliver tangible benefits to its citizens?