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KPK Rejects Yaqut’s 50:50 Hajj Quota Rationale, Cites Adequate Facilities in Saudi Arabia

by Emma Walker – News Editor February 24, 2026
written by Emma Walker – News Editor

Jakarta – Indonesia’s anti-corruption agency, the KPK, has refuted claims made by former Religious Affairs Minister Yaqut Cholil Qoumas regarding the rationale behind a 50/50 split of additional Hajj quotas. Qoumas had argued the division – between regular and special quotas – was intended to ensure the safety of pilgrims, but the KPK, working in conjunction with the Supreme Audit Agency (BPK), found no basis for the assertion after inspecting facilities in Saudi Arabia.

“We went to Saudi Arabia with a team of auditors from the BPK to check the availability of Hajj facilities, and we found that they were highly adequate for the pilgrimage,” KPK spokesperson Budi Prasetyo told reporters in Jakarta on Tuesday. “we believe the reason given [by Qoumas] is not appropriate.” Prasetyo added that the available facilities meant the 50/50 split was unnecessary.

The additional 20,000 quotas granted by Saudi Arabia were specifically intended to reduce the lengthy waiting lists for regular Hajj pilgrims, Prasetyo explained. He questioned the logic of dividing the additional quotas equally between regular and special access, stating that it was “not in sync” with the original purpose of the allocation. “The granting of the additional quota was to shorten the waiting list for Hajj pilgrims in Indonesia. Many prospective pilgrims have been waiting for decades,” he said.

Prasetyo also indicated that the KPK is investigating potential financial irregularities related to the quota allocation, suggesting funds may have been diverted to the Ministry of Religious Affairs. He urged a comprehensive examination of the case, rather than a fragmented approach.

Qoumas, who is now facing charges in connection with the Hajj quota corruption case, defended his actions on Tuesday, describing the situation as a learning experience for leaders. “This is a lesson for every leader in making policy. Even policies made with humanitarian considerations may be questioned,” he said following a pre-trial hearing in Jakarta. He maintained that leaders should not be afraid to make decisions that benefit society and the nation, asserting that Indonesia was built by courageous leaders.

Qoumas explained that the 50/50 split was based on a principle of safeguarding pilgrims’ lives, citing limitations in available space in Saudi Arabia. He also emphasized that the jurisdiction over Hajj affairs rests with Saudi Arabia, and Indonesia is bound by Saudi regulations, including those related to quota allocation, as outlined in a memorandum of understanding (MoU).

The KPK has barred Qoumas from leaving the country while the investigation continues, according to reports from The Jakarta Post. A pre-trial motion filed by Qoumas is currently underway, seeking to challenge the KPK’s decision to name him a suspect.

February 24, 2026 0 comments
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Business

Indonesia-US Trade Deal: Ethanol Imports & E20 Mandate Concerns

by Priya Shah – Business Editor February 21, 2026
written by Priya Shah – Business Editor

Indonesia is now obligated to import at least 1 million kilograms of ethanol annually from the United States, according to a trade agreement finalized Friday in Washington D.C. The commitment is part of a broader Agreement on Reciprocal Trade (ART) between the two nations, detailed in Annex III, Article 2.23 of the agreement.

The agreement stipulates that Indonesia will not adopt or maintain any measures preventing the import of U.S. Bioethanol. Indonesia is required to mandate a five percent bioethanol blend (E5) in its gasoline supply by 2028, increasing to a ten percent blend (E10) by 2030, with a stated ambition to move towards a 20 percent blend (E20) contingent on domestic supply and infrastructure capabilities.

The annual import quota of 1 million kg of ethanol is equivalent to approximately 1.2 million liters, though the precise volume may vary based on temperature and ethanol concentration. This commitment comes as the Indonesian government has previously emphasized reducing reliance on fuel imports and bolstering domestic ethanol production. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has stated the demand for “creative” solutions to achieve self-sufficiency in ethanol production, acknowledging the challenges of meeting domestic demand.

The ART agreement has prompted questions regarding Indonesia’s existing policy mandating a 20 percent ethanol blend in gasoline by 2028. Minister Lahadalia has indicated that achieving this goal requires innovative approaches.

Simultaneously, Indonesia is pursuing domestic ethanol production. A joint venture between PT Pertamina and PT Sinergi Gula Nusantara (SGN) is currently constructing a bioethanol plant in Banyuwangi, East Java, projected to produce 30,000 kiloliters of bioethanol annually using sugarcane as a feedstock.

Minister Lahadalia has stated that the import of ethanol, including from the U.S., will continue in parallel with efforts to increase domestic production, until Indonesia can meet its own needs. He also emphasized that the import agreement is proportional and measured to meet domestic requirements. The government is also actively seeking investment in the sector, including from U.S. Companies, to further expand domestic capacity.

The Indonesian government views the mandatory blending of gasoline with ethanol as a strategy to strengthen national energy security and create new business opportunities within the country. The U.S. Trade agreement facilitates this transition, providing a guaranteed supply of ethanol whereas Indonesia develops its domestic production capabilities.

February 21, 2026 0 comments
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Business

Freeport Indonesia: Indonesia to Increase Stake to 63% with Post-2041 License Extension

by Priya Shah – Business Editor February 21, 2026
written by Priya Shah – Business Editor

The Indonesian government has extended the Special Mining Business Permit (IUPK) for PT Freeport Indonesia in Papua beyond 2041, a decision announced Friday following negotiations with the U.S.-based mining company. The extension, formalized through a Memorandum of Understanding (MOU) signed on February 18th in Washington, D.C., and witnessed by President Prabowo Subianto, aims to ensure operational continuity as Freeport approaches peak production, projected for 2035.

According to Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia, the decision to extend the IUPK is strategically linked to Freeport’s anticipated production peak. Currently, Freeport produces approximately 3.2 million tons of copper concentrate annually, yielding around 900,000 tons of copper and 50 to 60 tons of gold. “Because peak production is projected for 2035, We see key for us to ensure the sustainability of operations in Timika, Papua,” Lahadalia stated during a press conference streamed on the Ministry of ESDM’s YouTube channel.

A key component of the agreement involves an increase in Indonesian government ownership of PT Freeport Indonesia to 63% by 2041. The government currently holds a 51% stake. This increase will be achieved through an additional 12% divestment of shares to the state, without acquisition costs, according to Lahadalia. The Minister also indicated that a portion of these additional shares will be allocated to the Papuan regional government, recognizing its role as the producing area.

The extension of the IUPK is also intended to facilitate the exploration of new reserves, as highlighted by Minister Lahadalia. This aligns with a broader strategy to increase state revenues and maintain production sustainability, according to a statement released by the Ministry. The agreement follows intensive communication between the Indonesian government, MIND ID, and Freeport-McMoRan Inc. Regarding the permit extension scheme.

Minister Lahadalia emphasized that the extended permit is expected to significantly increase state revenues beyond current levels, including royalties and taxes, particularly from gold production. The deal was reached in conjunction with the implementation of technical aspects of the Indonesia-United States reciprocal trade agreement.

February 21, 2026 0 comments
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