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Tenggara Backgrounder June 14

Can Constitutional Court end electoral dispute?

Overview - The Constitutional Court is to start hearings on Friday to settle a dispute over the presidential election. It has until June 28 to decide, but it remains unclear whether its verdict would put an end to the row and the current political uncertainty. Much depends on the court’s ruling being accepted by the two contenders and their supporters.


Democratic Party eyes ministerial seat

Overview - The Democratic Party is moving closer to joining the ruling coalition after Susilo Bambang Yudhoyono's (SBY) eldest son and Democratic Party executive Agus Harimurti Yudhoyono (AHY) paid a visit separately to President Jokowi and Indonesian Democratic Party of Struggle (PDI-P) chairwoman Megawati Soekarnoputri on Idul Fitri. The visit is seen as the Democratic Party’s maneuver to offer AHY as a member of Jokowi's Cabinet, in exchange for the party’s switch of loyalty to the coalition.


Controversy over Tim Mawar’s role in May riots

Overview - An investigative report by Tempo recently linked several former members of the Army’s elite Special Forces’ (Kopassus) Tim Mawar, notorious for its involvement in forced disappearances and the abduction of prodemocracy activists in 1997-1998, and last month’s riots in Central Jakarta. – where eight people reportedly dead while hundreds are injured.


Weak global growth sparks rate cuts

Overview - The global economy has been weak in 2019. Investment is slowing and there is substantial risk for the escalation of a trade dispute that has spooked investors around the globe. Under such pressure, some central banks in the region namely Bank Negara Malaysia, Philippine Central Bank, Reserve Bank of India and Reserve Bank of Australia have decided to cut their benchmark interest rates.


After QRIS launching, more works still need to be done

Overview - Bank Indonesia has worked together with the Indonesian Payment Systems Association (ASPI), banks, credit card companies and online payment service providers to develop Quick Response Indonesia Standard code system (QRIS) since the middle of last year. Nevertheless, QRIS development is still unfinished. BI is still working on QRIS interoperability and interconnectivity QRIS is expected to be fully operational in the second half of 2019.


Red carpet for foreign carriers: Gimmick or solution?

Overview - Soaring operational costs for Indonesia airlines has penalized customers dearly with rising airfares and this eventually boosts inflation rates. The government has tried to bring down prices by lowering the fare ceiling but to no avail. Responding to the persistently high airfares, President Joko “Jokowi” Widodo suggested that the government would open Indonesia’s sky to international air carriers. Their entry is expected to push up competition in the local aviation industry, currently dominated by state-owned carrier Garuda Indonesia and private Lion Air Group.