Tenggara Backgrounder November 30
Uncovering the shroud over new KSAD
The appointment of Andika Perkasa as the new Army chief of staff (KSAD) has raised speculations among public as it is considered too fast. Appointed as the Army Strategic Reserves commander (Pangkostrad) barely five months ago, it is reported that Andika’s skyrocketing career is largely due to his father-in-law’s, AM Hendropriyono, political standing as one of President Jokowi’s confidantes.
The struggle of Soeharto clan into politics again
Berkarya Party’s attempt to establish its political presence ahead of the 2019 legislative election illustrates the Soehartos prevailing power in the domestic politics. The family’s considerable power in the country’s business sector, furthermore, eases the Soehartos’ effort to reestablish their stature.
Lobbying behind mining regulation reform
The planned revision of several regulations related to coal business seems to be part of the government’s reform to provide business certainty to the coal mining industry. However, circumstances surrounding the plan suggest that the plan was full of political and business interests.
Fierce banking competition amid consolidation
Since 2014, the OJK has been implementing a banking consolidation policy by encouraging foreign investors from East Asian countries to acquire and merge Indonesia’s small banks (BUKU I) to trim the total number of banks, as suggested by BI’s API guideline. The mergers intensify competition among BUKU II and BUKU III banks. This competition benefits BUKU IV banks but has so far failed to improve BUKU II and BUKU III banks’ profitability.