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Tenggara Backgrounder April 01, 2022
POLITICS
Indonesia scrambles to save G20 presidency
The 2020 G20 Bali summit scheduled for November is in jeopardy, as the war in Ukraine has cast doubt over which and how many leaders from the world’s wealthiest economies can attend.
Desperate IKN authority looks for funding
Nearly three weeks after his inauguration, head of the Nusantara Capital City (IKN) Authority Bambang Susantono met with President Joko “Jokowi” Widodo on March 29 to discuss preparations for the country’s new capital. Bambang said afterward four pr...
‘Mudik’ policy can be another gamble for the government
With the country’s COVID-19 situation improving, the government has decided to further ease restrictions by allowing the Idul Fitri tradition of mudik (exodus) to resume this year. Assuming that Indonesia is on track toward endemicity, the government...
Sandiaga torn between personal ambition and loyalty to party
Tourism and Creative Economy Minister Sandiaga Uno has been touted as a potential contender for the 2024 presidential election, but has been coming under close attention from the Gerindra Party for his political maneuvering that some say contradicts...
BUSSINES & ECONOMICS
Govt subsidizes Pertalite, allows Pertamax price to increase
The government is changing its fuel subsidy policy by abandoning the low octane Premium gasoline and subsidizing Pertalite. At the same time, state-owned oil and gas giant Pertamina plans to increase all non-subsidized fuel prices after getting the n...
Price negotiation for coal supply in DME projects drags on
The government has yet to issue a regulation to set the coal price for dimethyl ether (DME) production. If set too low, the DME project will not be economically viable for coal suppliers. If set too high, the DME price will be too high and the purpos...
Jokowi calls out ministries, SOEs over imported products
Amid the government’s increasing efforts to promote local products, various ministries and state-owned enterprises (SOE) are revealed to still prioritize imported products, leaving President Joko “Jokowi” Widodo furious. Jokowi also hinted at an immi...
OJK issues new regulation on unit link insurance amid rising disputes
The Financial Services Authority (OJK) has issued new circular (SEOJK) No. 5/2022 concerning unit link insurance (SEOJK PAYDI) to help reform Indonesia’s insurance sector, which continues to suffer from low public confidence. Meant to encourage a mor...
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