Tenggara Backgrounder July 13
Who will Jokowi choose?
As the deadline for the registration of presidential and vice-presidential candidates contesting the 2019 election approaches, it remains unclear who President Joko “Jokowi” Widodo will choose for his running mate. As Jokowi’s electability rating is not yet convincing, his choice of running mate is pivotal. Several names have been touted to become Jokowi’s next VP, with each offering considerable yet different benefits for him.
JK's political maneuvers
With the door to running alongside President Joko “Jokowi” Widodo in the next presidential election closed, Jusuf Kalla’s next political maneuvers remain uncertain. Numerous predictions have been made about which camp Kalla will side with after his term as vice president ends.
House expands oversight authority in new draft SOE bill
The House of Representatives wants to strengthen its authority in the new draft stateowned enterprise (SOE) bill by expanding oversight authority over privatization and the establishment of SOE holding companies. Unlike the prevailing Law No. 19/2003 on SOEs, the new draft requires SOEs to consult with and obtain approval from the House before taking any corporate action, such as a merger and acquisition, as well as an initial public offering. The draft also includes oversight authority over corporate actions taken by the subsidiaries of SOEs. University of Indonesia (UI) Management Institute managing director Toto Pranoto has warned that excessive oversight may hinder the activities of SOEs, especially when they need to raise funds quickly via the financial market.
Jakarta's NJOP surge surprises property developers
Property developers in Jakarta are surprised by the new regulation that increases the amount of taxable value of property (NJOP) by an average of 19.54 percent, and in some areas by 240 percent.4 The regulation, Governor Regulation No. 24/2018, was enacted in March 2018 and intended to function as a redistributive policy, by taxing business district areas like Sudirman area in Jakarta (Rp 93.9 million per square meter) and benefiting Jakartans with lower economic status.