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Tenggara Backgrounder January 13, 2023
POLITICS
NasDem under scrutiny as reshuffle imminent
Rumors of a Cabinet reshuffle have marked a start to the political year for President Joko “Jokowi” Widodo, who is on the last episode of his term. Speculation about the reshuffle was triggered by the NasDem Party’s decision to nominate former Jakart...
PDI-P finds life at the top a bigger struggle
The Indonesian Democratic Party of Struggle (PDI-P) may have come out at the top in the last two general elections, but whether it can score a hat-trick in 2024 depends on whether it is fielding a strong presidential candidate who can help it win the...
KPK at center stage of Formula E investigation controversy
Controversy has shrouded the probe into the alleged corruption of the Formula E motorsports race. The Corruption Eradication Commission (KPK) is at center stage as reports have circulated of its push for a formal investigation even when it has yet to...
Jokowi’s forte put to test as House reviews Job Creation Perppu
Government regulation in lieu of law (Perppu) No. 2/2022 on job creation, which President Joko “Jokowi” Widodo signed at the end of last year, is currently under the House of Representatives’ review. With public opposition to the Perppu mounting, the...
BUSSINES & ECONOMICS
Bulog to intervene rice market as prices soar, stocks deplete
Rice prices continue to increase in the beginning of the year despite controversial late importation of rice and market intervention by the State Logistics Agency (Bulog). Learning from the persistent price increase of rice, the National Food Agency...
Government hikes income tax rates on the super-rich to boost revenue
Annual tax returns to be filed in March 2023 will be using the new progressive tax rates that have been in effect since 2022. The tax rate adjustment adds a new bracket that increases taxes on the super-rich. The government hopes that the new tax rat...
Jokowi plans a tougher foreign exchange control as rupiah weakens
President Joko “Jokowi” Widodo plans to tighter control the flow of foreign exchange from exports (DHE) through a government regulation (PP). The move was taken following the ineffectiveness of Bank Indonesia’s (BI) market-friendly monetary operation...
World Bank projects slower growth for Indonesia, global economies
The World Bank issued in January its flagship report, “Global Economic Prospects,” that projects a weaker economic growth for Indonesia of 4.8 percent in 2023, down from 5.2 percent last year, reflecting what the bank described as softening but still...
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