Tenggara Backgrounder June 28

Prabowo, Jokowi rumored to join hands

Overview - President Joko “Jokowi” Widodo reportedly has offered two ministerial seats, one deputy speakership at the People’s Consultative Assembly (MPR) and two spots on the Presidential Advisory Board to Gerindra as part of reconciliation. Gerindra joining Jokowi’s government may appear an ideal settlement after an exhausting, noisy political year. Such a solution, however, will pose more problems.


Turmoil remains possible following court’s ruling

Overview - Through it's ruling, the Constitutional Court ended 10 months of rivalry between presidential candidates Joko "Jokowi" Widodo and Prabowo Subianto. The panel of court justices unanimously rejected Prabowo's challenge to his defeat. however, even after the court delivered its verdict, the fight does not seem to have ended.


Jakarta Bay: Anies’ sudden change of heart questioned

Overview - In a sudden turn-around, Jakarta Governor Anies Baswedan issued building permits (IMB) for artificial islets. The policy runs counter to his campaign promise to stop the Jakarta Bay reclamation project of his rival Basuki “Ahok” Tjahaja Purnama. The news has surprised, even disappointed, many since it does not reflect the populist rhetoric imbued in his campaign.


Should FPI's permit be revoked?

Overview - Permit for hardline mass organization the Islam Defenders Front (FPI) expired on June 20. The Public was divided over the group's future. While some believe that suspending FPI as a mass organization might protect the public from its alleged support for radicalism, turning down the permit extension request does not necessarily mean that the group will be permanently disbanded.


Gov’t policies to reduce oil imports deliver mixed results

Overview -  The effectiveness of the government’s efforts to reduce oil and gas imports, such as increasing the consumption of 20 percent blended biodiesel (B20) and stopping aviation turbine fuel (avtur) and solar imports from May, have been questioned.


Coal industry in limbo after Tanito Harum has IUPK revoked

Overview -  The government has yet to provide certainty for eight major coal mining companies with contracts set to expire in 2025. Their mining contracts could not be extended so far, because a revision of Government Regulation (PP) No. 23/2010 – the legal basis for contract renewal – has not yet been approved by the President.


BI reaches an agreement with Visa, Mastercard

Overview - Bank Indonesia has reached an agreement with American switching companies MasterCard  and Visa  regarding their participation in the national payment gateway (GPN). The deal is pivotal and might have a positive influence on Indonesia negotiation with the US concerning the General System of Preference (GSP).


Jokowi green-lights revision of 2003 Manpower Law

Overview - President Joko “Jokowi” Widodo held a Cabinet meeting to discuss his plan to revise Manpower Law. Jokowi stated that, after his recent reelection, he was free to pursue unpopular policies that could boost the economy. Seizing on this opportunity, Apindo, HIPMI, and Kadin pushed for a revision of the 2003 Manpower Law to boost the development of Indonesia’s labor-intensive industries.