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Backgrounder

Tenggara Backgrounder is a weekly political and business briefing service combining insights and analysis by in-house experts and those from the Centre for Strategic and International Studies (CSIS) and Universitas Prasetiya Mulya, as well as background information from The Jakarta Post journalists. Tenggara Backgrounder provides you exclusive insights into what’s happening behind the scenes along with insider scoops that are not published in the media.

Edition

January 29, 2021

Business growing restless at slow pace of COVID-19 vaccination

Indonesia may brag to be one of the first Asian countries to have launched a national COVID-19 vaccination program, but it may still end up among the last to complete because of the sheer size of its population. Pressure to accelerate vaccination mounts this week with the number of people infected by the virus breaking the 1-million mark.

Other Topics
  • Natural disasters put govt’s mitigation, response under spotlight
  • Social aid corruption spillover: PDI-P elite implicated
  • New antiterror policy underlines community engagement
BRI reshuffles board, prepares to become MSMEs holding

BRI reshuffled four of its board of directors in an extraordinary general shareholders meeting on Jan. 21. With two millennials on the new board, BRI has been applauded for nurturing a new generation. The new board has also brought positive sentiments on the prospect of expanding to digital banking, particularly with the upcoming holding company for MSMEs financing.

Other Topics
  • Youth dominate Indonesia’s demographics, need job boost
  • Govt cancels spectrum auction, likely to delay 5G deployment
  • Indonesia faces looming beef scarcity throughout 2021
Edition

January 22, 2021

Internal division, mounting sectarianism to test new police chief

Comr. Gen. Listyo Sigit Prabowo is waiting for his inauguration as the National Police chief. With many linking Listyo’s candidacy to his close relationship with President Jokowi, questions arise as to whether Listyo has what it takes to quell growing sectarianism in the country, particularly as factionalism has reportedly beleaguered the force.

Other Topics
  • Obstacles loom on government’s vaccination drive
  • Capital relocation plan put on hold, ambition still on
  • Sino-Indonesian ties too delicate to open up
SOE Ministry drops holding, plan to merge port operators

The SOE Ministry has dropped its initial plan to create a holding company for state-owned port operators – PT Pelabuhan Indonesia (Pelindo) I, II, III and IV – and instead will merge all four to reduce logistics costs and increase efficiency in providing port-related services. Moreover, the merger plan is believed to be a faster way to achieve President Jokowi’s sea toll road vision.

Other Topics
  • Government orders culling program to tackle poultry oversupply
  • Indonesia, EU clash on nickel ore and palm oil
  • Jokowi pushes for INA to operate early this year
Edition

January 15, 2021

Out of jail, ageing but unrepentant Baasyir remains dangerous

He may be old and ailing, but convicted terrorist Abu Bakar Baasyir, who walked free last week after spending more than 10 years in prison, remains a serious threat, especially amid reports that the group he once led, Jemaah Islamiyah (JI), is regrouping to pursue his vision of converting Indonesia into an Islamic state by violent means. For one thing, he is unrepentant.

Other Topics
  • Simmering central-regional tension marks PSBB reinstatement
  • Govt rolls out vaccination plan despite various efficacy rate reports
  • Discovery of sea glider raises questions about TNI capability
Govt to up PEN budget as pandemic worsened

On Jan. 4, Finance Minister Sri Mulyani Indrawati announced a plan to increase the 2021 National Economic Recovery (PEN) budget. Previously, the 2021 PEN budget was set at Rp 372.3 trillion (US$26.5 billion) under the assumption that Indonesia could achieve herd immunity by the second half of 2021.

Other Topics
  • SKK Migas expects ENI, Chevron to reach a deal on IDD in Q1 of 2021
  • Govt waives penalties for coal companies, sets lower DMO for 2021
  • MRT Jakarta to acquire KCI, pushes integrated transport services
Edition

January 8, 2021

Government pulls out all stops to destroy defiant radical group

The government is doing everything it can to destroy the Islam Defenders Front (FPI) but the group, notorious for attacking religious minorities, is not taking it laying down. For now, the FPI is staying low key, playing it unusually defensive in its long-running battle with the government. Instead, it is the government that has been taking the initiative.

Other Topics
  • Antiradicalism agenda marks police succession
  • Stepping up COVID-19-handling strategies
  • Doubts loom over government’s vaccination plan
Indosat-Tri team up to improve efficiency, pave way for 5G

The majority shareholders of PT Indosat and PT Hutchinson 3 Indonesia, also known as Tri, are preparing for a possible merger of their Indonesian businesses, which many expect could be good for both companies and an industry that is plagued by tight competition and declining revenues. Their merger, if realized, would likely encourage other players, especially PT XL Axiata and PT Smartfren Telecom, to follow suit.

Other Topics
  • Tofu, tempeh disappear briefly as imported soybean price soars
  • Gojek-Tokopedia in US$18 b merger talks as Gojek deadlocks with Grab
  • Govt imposes targeted COVID-19 restrictions
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