Backgrounder

Jokowi leaves everyone guessing about Cabinet reshuffle

After the National Mandate Party (PAN) decided to join President Joko “Jokowi” Widodo’s coalition at the end of last month, rumors of another Cabinet reshuffle immediately surfaced. But after weeks of waiting there has been no clarity as to whether the reshuffle will take place and when, let alone who will get what in the new Cabinet.

Construction of first EV battery begins, luxury tax exemptions for EVs

The era of electric vehicles (EVs) in Indonesia may eventually arrive as President Joko “Jokowi” Widodo broke ground on the construction of the first EV battery plant in Southeast Asia in Kerawang, West Java, on Wednesday, as the government would give luxury tax (PPnBM) exemptions for EVs beginning Oct. 15 to encourage the shift to EVs from conventional vehicles.

Edition

September 10, 2021

In spite of gains, Indonesia in no rush to remove COVID-19 restrictions

Indonesia is resisting intense pressure to end the restrictions on people’s mobility, even though it is making significant gains in bringing the pandemic under control. Wary of a third wave of COVID-19 infections now seen in countries that have opened up their economy, the government this week extended public activity restrictions (PPKM) in all cities and regencies. Jakarta, for example, remains under PPKM level 3 in spite of being the top performer.

De-dollarization begins as Indonesia, China implement LCS

Indonesia has implemented a local currency settlement (LCS) agreement for trade and investment with its largest trading partner China, following similar steps with Malaysia, Thailand and Japan in a bid to reduce dependency on the US dollar. The LCS is expected to benefit businesses and make trade and investments between Indonesia and its partners more efficient. In the long run, Bank Indonesia (BI) will expand LCS frameworks with Indonesia’s other major trade partners to support the rupiah’s stability.

Edition

September 3, 2021

Larger coalition gives Jokowi extra edge over big parties

President Joko “Jokowi” Widodo’s political weight has increased on the National Mandate Party (PAN) formally joining his coalition government this week, an important step in building a lasting legacy beyond 2024, when he steps down from office.

Tangguh, Corridor Block negotiations bring RI’s gas projects back to life

Indonesia’s gas investment scene was looking bleak as global giants such as Chevron, Shell and ConocoPhillips were leaving the country and divesting their shares in the country’s most attractive gas fields. That may change however, as negotiations in some gas fields have shown progress.

Edition

August 27, 2021

NasDem snubs Cabinet reshuffle, Constitutional amendment talks

President Joko “Jokowi” Widodo met with leaders of political parties that form the ruling government at the State Palace in Jakarta on Wednesday. The meeting came on the heels of rumors about a Cabinet reshuffle and a plan to amend the Constitution.

Govt, BI agree on $30b burden-sharing scheme until 2022

Bank Indonesia (BI) and the government have agreed on a third burden-sharing scheme to finance the 2022 state budget (APBN), in which the central bank will buy government bonds (SBN) amounting to Rp 439 trillion (US$30.48 billion) between 2021 and 2022.