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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

September 2, 2022

Puan makes last dash in 2024 presidential bid

House Speaker Puan Maharani is making high-profile public appearances and increasingly playing the woman card in a bid to boost her electability, which has remained stubbornly low in the run-up to the 2024 presidential election.

Other Topics
  • Sandiaga’s likely comeback to presidential race
  • Data protection law may not really offer protection
  • PDI-P finds replacement to fill Cabinet vacancy
Govt rolls out social aid, signaling approaching fuel subsidy cut

The government has been holding back on reducing fuel subsidies, fearing the move would exacerbate already rising inflation. As it consistently informs the public of the difficulty of maintaining the current subsidy levels, the government is also rolling out social aid schemes worth Rp 24.17 trillion (US$1.62 million), presumably aimed at softening the blow from an upcoming subsidized fuel price hike.

Other Topics
  • Govt kickstarts Nusantara with $360m construction contracts
  • Online ride-hailing fare increase a blunder, delayed a second time
  • BI lifts policy rate to 3.75 percent, anticipating inflationary pressures
Edition

August 26, 2022

Jokowi seeks to circumvent courts in resolving human rights violations

President Joko “Jokowi” Widodo has set up a team to resolve past serious human rights violations without going through courts of law, prompting some civil society organizations to accuse the government of trying to absolve the perpetrators of any guilt.

Other Topics
  • National Police begins internal clean-up
  • Pressures mount in PDI-P to unveil presidential candidate
  • Indonesia sees biggest corruption case involving palm oil land grabbing
Coal royalty rate for IUP holders now higher

There is a wide gap between the coal royalty rate charged to coal mining permit (IUP) holders and to contract of work (PKP2B) holders, especially ones that have converted to special mining permit (IUPK) holders. Whereas the former was only charged a maximum royalty rate of up to 7 percent, the latter had to pay almost twice that with 13.5 percent.

Other Topics
  • Japan’s SMFG, MUFG joins bidding war for Panin Bank
  • Target not achieved, govt changes TV analog switch off mechanism
  • Fiscal consolidation to be key theme of 2023 budget
Edition

August 19, 2022

Police dissolve special task force, as more secrets unfold

The probe into the murder of Brig. Nofriansyah Yosua Hutabarat has escalated far and wide. Most recently National Police chief Gen. Listyo Sigit Prabowo dissolved a special police task force led by Insp. Gen. Ferdy Sambo, the former internal affairs chief named a suspect in the case.

Other Topics
  • Indonesia’s multi-party elections feel more like a one-half party system
  • TNI Law revision can pave the way for revival of dual-function
  • Third time lucky? Prabowo to contest presidential race again
Govt mulls over lifting subsidized-fuel prices to save state budget

The Indonesian government is planning to lift prices of currently-subsidized fuels to safeguard the state budget’s (APBN) sustainability. As subsidized-fuel consumption surges in recent months, its corresponding supply stock is quickly depleting, hence jeopardizing the APBN’s health. The price increase is expected to intensify domestic inflation to 7-8 percent.

Other Topics
  • Jokowi urges SOEs, INA to enter Masela gas block to jumpstart project
  • Jokowi repeats Soeharto’s achievement amid global food crisis
  • RI sidelined in Tesla’s US$5b battery material contract with Huayou, CNGR
Edition

August 12, 2022

Police general named murder suspect as institution seeks to regain public trust

In a shocking turn of events, the National Police declared former internal affairs chief Insp. Gen. Ferdy Sambo a suspect on Tuesday and announced plans to charge him with the premeditated murder of his former aide Brig. Nofryansyah Yosua Hutabarat.

Other Topics
  • Indonesia-US war games become Gen. Andhika’s pet project
  • Govt inches closer to policing cyberspace
  • Govt to go ahead with Komodo entrance fee hike
After tug of war, Jakarta’s Halim airport goes to private company to manage

After a protracted legal battle and a series of negotiations, state-owned airport operator PT Angkasa Pura II has finally given in and will allow PT Angkasa Transportindo Selaras (ATS) to operate Halim Perdanakusuma airport in Jakarta. Passengers, however, will have to wait as ATS has not got a license from the Transportation Ministry and the airport is still under renovation.

Other Topics
  • PLN pushes for an entity to collect coal levies as supply recedes
  • Air travel, online ride fare increases, push up inflation
  • Indonesian economy grows 5.44 percent in Q2, defies forecasts
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