Tenggara Backgrounder October 26
Politics trumps economics in gasoline pricing
Energy and Mineral Resources Minister Ignasius Jonan’s decision to revoke his announcement on the government’s decision to increase the oil prices less than half an hour after his initial announcement demonstrates how President Jokowi will likely maintain his real politik rules.
Anies’ garbage policies and populist game
The dispute between the Jakarta and Bekasi administrations over waste management once again indicates Anies’ populist tendency. As the Jakarta governor has reportedly started eyeing his reelection bid in 2022 and the presidential election in 2024, it remains unlikely that Anies will abandon his populist maneuvers and risk losing most of his staunchest supporters.
Bribery case is unlikely to stop Meikarta
The Meikarta property project, the Lippo Group’s flagship project, is in limbo after the Corruption Eradication Commission (KPK) caught several of its employees and Bekasi Regency officials red-handedly. Investors started shunning Lippo companies soon after the bribery case emerged, although it is not the first bribery case involving Lippo.
Indonesia’s fintech faces structural challenges
Indonesia’s fintech holds huge growth potential. President Joko “Jokowi” Widodo’s emphasizes for friendly and accommodative fintech regulations was correct, despite structural problems beseting the industry persists. If left unaddressed, Indonesia’s fintech will be no more than a house of cards.
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