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Backgrounder
Tenggara Backgrounder January 21, 2022
POLITICS
Discourse over presidential term extension persists
The discourse over whether to extend President Joko “Jokowi” Widodo’s term of office looks to be alive and kicking despite the head of state’s repeated denial of having such ambitions, which he says is unconstitutional. This time around, Investment M...
House nod puts Jokowi’s new capital project beyond doubt
The House of Representatives has given President Joko “Jokowi” Widodo the go ahead with his plan to move the national capital, virtually putting a stop to doubts and public skepticism that the project could ever take off. He now has the legal and pol...
Regional tensions behind Prabowo’s push for military modernization
In a show of the commitment to the modernization of the country’s primary weapons systems, Navy chief of staff Adm. Yudo Margono has inaugurated two new warships, KRI dr Wahidin Sudirohusono–991 and KRI Golok-688. Yudo said procurement of the new ves...
Indonesia loses billions in satellite procurement fiasco
The Attorney’s General Office (AGO) is pressing on with its investigation into the Defense Ministry’s signing of unauthorized satellite leases in 2015 to maintain the country’s right to a strategic orbital slot. The alleged corruption is said to have...
BUSSINES & ECONOMICS
Odin Project controversy ends with IBC losing StreetScooter
The Indonesia Battery Corporation (IBC) stumbled in its attempt to build the electric vehicle (EV) ecosystem to strengthen its value chain. The state-owned company planned to acquire StreetScooter Engineering (StSE), the biggest electric light commer...
Jakarta governor clashes with businesses over minimum wage
Several businesses, as represented by the Indonesian Employers Association (Apindo), have filed a class action lawsuit against Jakarta Governor Anies Baswedan over his decision to increase the provincial minimum wage (UMP) by a greater amount than pr...
Haj fund BPKH injects Rp 3 trillion, saves troubled Muamalat
Bank Muamalat Indonesia has finally met a wealthy enough savior, the Haj Fund Management Agency (BPKH), after a series of failed attempts by a number of investors to take control of the troubled bank. The BPKH’s decision to invest in Bank Muamalat ha...
Poverty declines, trade surplus hits 15-year high, recovery continues
Indonesia’s economy seems to be exhibiting continuing signs of recovery. By September 2021, the country’s poverty rate had declined to 9.71 percent, while the trade balance saw a US$1.02 billion surplus in December 2021. Nonetheless, experts have war...
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