Backgrounder

PDI-P, Ganjar smarting from U20 soccer fallout

The Indonesian Democratic Party of Struggle (PDI-P) led the campaign to reject Israel’s participation in the FIFA Under-20 soccer World Cup, which Indonesia would have hosted in May. Now that the soccer governing body has taken the venue out of Indonesia’s hands, the ruling party has become the target of angry netizens, a reaction which, if poorly handled, could undermine its chances in next year’s general elections.

Govt rolls out VAT cut to boost demand for electric cars

The Indonesian government has rolled out a value-added tax (VAT) cut to boost demand for electric cars and buses. The tax incentive is introduced in Finance Ministerial Regulation (PMK) No. 38/2023. In enacting the VAT incentives, the government hopes that the initiative could help raise the Indonesian general public’s demand for electric vehicles (EVs), and therefore help support the development of the country’s domestic EV ecosystem.

Edition

March 31, 2023

Indonesia played political football and lost, and now faces big penalty

Indonesia lost its right to host the soccer U-20 World Cup tournament less than two months before kick-off because of a domestic controversy about the participation of Israel, with which it is has no diplomatic ties.

Inalum to focus on aluminum smelting after MIND ID spin-off

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) is now free from its duty in strategic planning as a mining holding company and can finally focus on its aluminum operations. The President has been eager to develop the downstreaming industry by rolling out ore export bans, with washed bauxite export ban slated to start in June 2023, but stalled aluminum smelter development has deterred the plan.

Edition

March 24, 2023

Jokowi cautions Defense Ministry over imported arms

President Joko “Jokowi” Widodo has thrown the Defense Ministry in the limelight after calling out its reliance on imports for the modernization of Indonesia’s primary weapons system (alutsista). His remarks are not at all surprising, given how the President has persistently urged industries and government institutions to purchase domestic products over imported goods.

Plate remains witness in BTS graft case despite brother’s allegations

The brother of Communications and Information Minister Johnny G. Plate, Gregorius Alex Plate (GAP), has returned the Rp 534 million (US$35,387) he allegedly received for the ministry’s 4G base transceiver station (BTS) projects under the Telecommunications and Information Accessibility Agency (BAKTI), but minister Plate’s involvement has yet to be proven so he remains a witness instead of a suspect.

Edition

March 17, 2023

Islam-based parties favor closed-list electoral system

The minor Crescent Moon Party (PBB) has sided with the Indonesian Democratic Party of Struggle (PDI-P) in support of the reinstatement of the closed-list representation electoral system. Meanwhile, in an about-face, the Muslim-based United Development Party (PPP) has stated its preference of the old mechanism, which is said to disregard the one man one vote principle of a democratic election.

Air Products exits RI’s coal downstream projects

After a tug-of-war in coal supply price negotiations for a coal-to-dimethyl ether (DME) conversion project with Indonesian state-owned enterprises (SOEs) Bukit Asam (PTBA) and Pertamina, United States chemical company Air Products & Chemical finally decided to leave all coal downstream projects, including the coal-to-ethanol gasification project with Kaltim Prima Coal (KPC) and Arutmin Indonesia.