Backgrounder

Will Jokowi hold sway over regional elections even after stepping down?

With four months left in office, President Joko "Jokowi" Widodo has already consolidated his political influence for the next five years. Apart from president-elect Prabowo Subianto pledging to carry on the current government's programs and having his eldest son Gibran Rakabuming Raka assume the country's second-highest office, Jokowi has also been manuevering between political parties after parting ways with the Indonesian Democratic Party of Struggle (PDI-P).

OJK loses court battle to Kresna Life, again

The OJK has suffered another legal setback against Kresna Life Insurance. This defeat took place at the PTUN on June 14, where OJK's appeal to maintain the revocation of Kresna Life's license was overturned. The OJK is now contemplating a cessation appeal, which could result in the legal enforceability of the overturned license revocation of Kresna Life if they are unsuccessful.

Edition

June 21, 2024

Prabowo’s Gaza initiatives make for good optics at home, abroad

President-elect Prabowo Subianto has come up with a few ideas about what Indonesia can do to help Palestinians in the Gaza Strip, which has been under siege by the Israeli military for over eight months. These ideas depart somewhat from the line taken by the administration of President Joko "Jokowi" Widodo and while it's questionable whether they would be taken up at all, they make for good optics both at home and abroad.

Morgan Stanley downgrades RI stocks over Prabowo’s fiscal policies

Indonesia's president-elect Prabowo Subianto plans to fund his campaign promises by increasing the Indonesian debt-to-GDP ratio by 2 percentage points annually, potentially reaching 50 percent by the end of his term. In response to this unprecedented fiscal policy, Morgan Stanley downgraded its evaluation of Indonesia's equities to "underweight," forecasting short-term economic uncertainty.

Edition

June 14, 2024

Prabowo’s synchronization team made up entirely of Gerindra elites

After dropping the idea of setting up a transition team, president-elect Prabowo Subianto has come up with a so-called synchronization task force comprising entirely of elites from his Gerindra Party. Its job: To synchronize the moves of the incoming and outgoing governments. It's a transition team in all but its name, but it skirts the contentious issue of who should lead it.

Muhammadiyah’s fund withdrawal from BSI reveals financial strength

Indonesia's second-largest Muslim organization, Muhammadiyah, has decided to divert trillions of rupiah funds from state-owned Bank Syariah Indonesia (BSI), the country's largest sharia bank, to other sharia banks. This move has raised concerns about its impact on BSI but also reveals the financial strength of the Islamic organization that many were unaware of.

Edition

June 7, 2024

Political parties shift fight to regional head elections

After concluding the general election, Indonesia is now preparing another political battle in the simultaneous regional head elections scheduled for Nov. 27, with 37 gubernatorial, 451 regency and 93 mayoral posts on the line. Major parties and power brokers are testing the water before the General Elections Commission (KPU) closes registration of candidates on Aug. 19.

IKN leaders’ resignation raises concerns among investors

Nusantara Capital City (IKN) Authority head Bambang Susantono and his deputy Dhony Rahajoe took Indonesia by surprise with their sudden resignations. This unexpected development raises suspicions about ongoing construction challenges at IKN, potentially leading to their departure. Given that the completion of Indonesia's new capital heavily depends on private sector investment, their resignations might signal concerns about the project's feasibility to potential investors.