Tenggara Backgrounder July 5

Prabowo pared down as Jokowi powers on

Overview - President Joko “Jokowi” Widodo, aware of Prabowo Subianto’s strength, offered an olive branch by inviting him to join his coalition. Now that Jokowi has been confirmed president for a second term in office, his offer to Prabowo still stands. But if and when they do meet, their power relations have dramatically changed. Prabowo comes to the negotiating table in a much weaker position.

Opposition may grace Jokowi's cabinet

Overview - Ever since Joko “Jokowi” Widodo and running mate Ma’ruf Amin were crowned as the winning pair of the 2019 presidential election, speculation about the composition of the new cabinet has circulated. The ministerial game, however, reportedly may change now that Jokowi is said to have moved to reach out to the opposition as a symbol of reconciliation with archrival Prabowo Subianto.


Chasing the agrarian reform target

Overview - Several companies involved in land conflicts have recently given up parts of their concessions to later be distributed by the government to the people living in the disputed area. Such decision might be a part of President Joko “Jokowi” Widodo’s last-minute maneuver to fulfill one of his campaign promises, namely solving land disputes in the country.


Indonesia launches integrated data system

Overview - On July 12, President Joko “Jokowi” Widodo signed Presidential Decree No. 39/2019, which stipulates the minutae of Satu Data Indonesia, an online portal that stores integrated data acquired from various agencies. With a view to promote good governance, Satu Data Indonesia has won wide support.


Indonesia to boost domestic demand of palm oil

Overview -  Indonesia, the world’s largest palm oil producer, has suffered most from falling international prices of palm oil due to slowing demand and rising output. The government’s approach to protecting what is a strategically important industry has been less conciliatory and more interventionist: boosting domestic demand by subsidizing biofuels and later “green energy”.


Poultry farmers protest sharp broiler price fluctuation

Overview -  Poultry farmers are fed up with volatile broiler prices that have occurred since mid-2018. At producer level, the price of live chickens is reported to be Rp 7,000 per kg, far below the floor price of Rp 18,500 mandated by the government in Trade Ministerial Regulation No. 96/2018.


Vale resubmits divestment proposal

Overview - The valuation of PT Vale Indonesia is expected to be completed in August this year. The announcement was made after Vale resubmitted its divestment proposal. If all goes well, Vale might be able to boost Inalum’s plan to develop lithium batteries used for electric vehicles in the future.


Vietnam in the crosshair as US, China agree on trade truce

Overview - The United States and China agreed to call a truce on their trade war and restart stalled trade talks during a meeting on the sidelines of the Group of Twenty (G20) Summit. Criticism from both Democrats and Republicans, however, raised doubts over the prospects of US-China trade negotiations. In response to this situation, Chinese exporters may continue to relocate their business to other Asian countries like Vietnam.