ya Tenggara Backgrounder December 21 | Tenggara Strategics

Backgrounder

Tenggara Backgrounder December 21

E-ID cards fiasco: Will it affect the elections?

The recent discovery of illegal sale of e-ID cards in a traditional and online market has prompted a fierce debate about the possibility of fake voters infiltrating the upcoming 2019 general elections. Since the debate remains largely unaddressed, the circulation of fake e-ID cards may be used in the future to question the legitimacy of election results by particular groups. 

 

Climate change & the powerful business as usual

Despite the considerable number of Indonesian delegations sent to the latest United Nations Climate Summit, in reality the country still generally manages climate change with pragmatism. As Indonesia aims to secure an international assistance of US$6 billion in combatting global warming and climate change, winning the supports of local power business interests and the public is the key. 

 

Batam’s problems go beyond dualistic issue

The announcement of transfer of authority from Batam Free Trade Zone Authority (BP Batam) to mayor of Batam to solve the prevailing controversial dual-governance system unveiled darker problems that lingered behind Batam’s economic stagnancy. Although the transfer could solve the political tug-of-war between BP Batam and local administration, it will not necessarily make Batam an attractive investment destination again.

 

Contentious reinvigoration of steel industry  

The decline of Indonesia steel industry became an entrance for the rising Chinese steel industry to expand beyond their borders. Chinese investors came to fill the gap of technology in Indonesia, bringing oxygen blown converter-based (OBC) technology, leaving local producers’ business such as Krakatau Steel, which utilize electronic furnace-based (EF), out of the race.

 

Macroeconomic update: bumpy ride ahead

Failing global oil prices might be a boon and barrier for Indonesian economy. Although it eases the pressure on RI’s oil and gas trade deficit, the situation signals a slower global economic growth next year, hampering efforts to boost non-oil and gas exports when Statistics Indonesia just announced that the country booked the worst trade deficit so far in 2018.