KPK becomes target of ‘psy war’Friday, 11 Jan 2019
GENERAL NEWS AND HEADLINES
The Jakarta Post and Koran Tempo, headline
The latest terrorism threats against two Corruption Eradication Commission (KPK) leaders have again raised concerns among the commission’s employees over their safety while on and off duty. On Wednesday morning, unknown assailants left a suspicious package containing materials that resemble components of a bomb, such as detonator, cables, nails, etc., at the private residence of KPK chairman Agus Rahardjo in Bekasi. At the same time, the remains of two Molotov cocktails were found at the home of KPK deputy chairman Laode Muhammad Syarif in Kalibata, where one bottle had exploded and another one remained intact. That the threats occurred at the private residences of the commissioners sends a message that the assailants are launching a psychological war targeting KPK employees and leaders, KPK workers’ union head Yudi Purnomo Harahap says.
At least eight acts of terrorism against KPK investigators and leaders had occurred prior to Wednesday’s incident. Many of them were involved in investigations into a number of high-profile cases. President Joko “Jokowi” Widodo has ordered the National Police to investigate and nab the perpetrators.
Police ask to team up with KPK
National Police chief Gen. Tito Karnavian has ordered detectives to discover the perpetrators and the motives behind the acts of terrorism against several KPK leaders in the last few days. Tito said he had talked with KPK chairman Agus Rahardjo and his deputy Laode Muhammad Syarif about the possibility of the KPK and the police forming a joint investigation team, while hinting that the police had found clues that could lead them to the perpetrators. By Thursday, the police had questioned 12 witnesses, 10 of whom were at the crime scenes.
Ministry to monitor airfares
The Transportation Ministry is closely watching changes in airfares following reports about soaring airline ticket prices in the low season. A spokesman for the Ministry, Hengki Angkasawan, said that so far all tickets have been sold in accordance with regulations. Nonetheless, Hengki said the ministry would keep in touch with the Indonesia National Air Carriers Association (INACA) and airline companies to ensure the ticket price regulation was not breached.
Previously, more than 11,000 people signed a Change.org petition demanding lower airfares. The petition specifically called on President Jokowi, Transportation Minister Budi Karya Sumadi, Finance Minister Sri Mulyani Indrawati, Garuda Indonesia’s president director, Garuda Indonesia’s CEO and Lion Air’s CEO to address the issue.
KPU rejects Prabowo’s request for change of campaign platform
Media Indonesia, headline
The General Elections Commission (KPU) rejected on Thursday a request from the Prabowo Subianto and Sandiaga Uno pair to revise their campaign platform. KPU commissioner Wahyu Setiawan told Media Indonesia that the pair had earlier filed a request to change their official vision and mission that was published on the KPU’s official website. The KPU turned down the appeal, citing a regulation that forbids candidates from changing their official campaign paperwork once the campaign period starts.
On Jan. 9, the Prabowo-Sandiaga campaign team submitted a revision of the candidates’ vision and mission to the KPU. A spokesman for the team, Dahnil Anzar Simanjuntak, said the revision was formulated in response to findings from the candidates’ campaign trail. In the revision, Prabowo and Sandi want to add a fifth foundational pillar to their platform and change their tagline from “Adil Makmur” (fair and prosperous) to “Indonesia Menang” (Indonesia victorious).
Megawati: Generation transfer in 2024
Democratic Party of Struggle (PDI-P) chairwoman Megawati Soekarnoputri says the upcoming elections would mark the start of the party’s regeneration, which is to peak in the 2024 elections. Speaking during the party’s anniversary celebration on Thursday, Megawati emphasized the need to think about a long-term strategy that would help the party win the 2024 elections through hardwork.
A number of dignitaries, including President Joko “Jokowi” Widodo, Vice President Jusuf Kalla and Jokowi’s running mate, Ma’ruf Amin, attended the celebration. Jokowi remarked about the need to maintain peaceful atmosphere ahead of the elections.
BUSINESS AND ECONOMIC NEWS AND HEADLINESJava domination getting stronger
Equality in the intermediation function of the country’s banking industry remains a big challenge as Java continues to dominate loan absorption, while financing expansion in other regions has tended to stagnate or even decrease.
Java, as the most densely populated island in the country, has recorded an above average industry growth. Based on Bank Indonesia (BI) data, loan disbursement in Java increased by 14.8 percent year-on-year (yoy) in October 2018. This is significantly higher than the growth in 2016 and 2017, which reached 7.6 percent and 7.8 percent yoy, respectively.
Funds raised through capital market to increase
Investor Daily, headline
Funds raised through the capital market are projected to increase this year amid the expected increase in capital inflow, possibly stronger rupiah, the planned tax rate cut and the upward trend in the of Jakarta Composite Index (JCI).
Global factors are also supportive since the United States Federal Reserve only plans to raise its reference interest rate (FFR) twice in 2019.
Up until Jan. 10, three new companies have conducted initial public offerings (IPO) and listed shares on the Indonesia Stock Exchange (IDX). They raised a total of Rp 805.83 billion from the IPOs. No companies listed their shares in the same month last year.
In the first quarter in 2019, 11 more companies are expected to hold IPOs and list shares on the IDX.
Vehicle loans issued without down payments
The Financial Services Authority (OJK) has issued a regulation allowing multifinance companies to provide loans for motorcycle and car purchases without down payment requirements.
This regulation is stipulated in OJK Regulation No.35/2018 on financing companies. However, only multifinance companies with non-performing loans (NPL) of below 1 percent are allowed to implement the down payment requirement.
In other words, only healthy multifinance companies are allowed to give loans without requiring down payments.
Govt sets moderate export growth target
The government has set a moderate growth of target of only 7.5 percent in non- oil and gas exports this year amid gloomy prospects in the global economy.
Trade Minister Enggartiasto Lukita said the government had set a moderate export growth target because there had been no signs of recovery in the global economy.
The International Monetary Fund (IMF) estimates that the world economy will grow only 3.7 percent this year, the same level as in 2018
Fed may impose rate hike up until March
The United States Federal Reserve has indicated that it will impose a federal fund rate hike up until March 2019 or even later, pending certainty with regard to global economic conditions. The possibility was noted in the Federal Open Market Committee minutes from a meeting held on Dec. 18-19, 2018.
This has generated optimism in the market that the central bank “could afford to be patient about further policy firming.”
“The message I am getting from Fed speakers is, ‘Our outlook is strong but in the near term we are going to wait for greater clarity and make sure the economy is on a sound footing before moving,’” said Laura Rosner, senior economist at MacroPolicy Perspectives LLC.