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Backgrounder
Tenggara Backgrounder August 14, 2020
POLITICS
Prabowo fortifies power, reinforces 2024 presidential bid
Defense Minister Prabowo Subianto retained his post as chairman of the Gerindra Party during its extraordinary congress held on Aug. 8. Prabowo’s reappointment, many argue, carries implications about not only Gerindra’s future but also his position i...
PDI-P, Golkar lock horns over job creation omnibus bill
A quarrel has erupted between the country’s two largest political parties, the Indonesian Democratic Party of Struggle (PDI-P) and its partner in the government coalition, the Golkar Party, over the job creation omnibus bill. PDI-P lawmaker Arteria D...
Jokowi deploys military and police in war against pandemic
President Jokowi is caught in a bind in his fight to stop the spread of COVID-19. He can hardly return to imposing lockdowns, which were unpopular, yet he is seeing infections rising at an alarming rate. He found a quick answer: start imposing heavy...
Muslim organizations join forces in opposing lobster seed policy
Maritime Affairs and Fisheries Minister Edhy Prabowo’s decision to roll back the lobster seed export ban, which was put in place by his predecessor Susi Pudjiastuti, has drawn a barrage of criticism. Recently, the country’s two largest Islamic mass o...
BUSSINES & ECONOMICS
Govt resorts to digital VAT to boost revenue
The Taxation Directorate General at the Finance Ministry has ordered 10 more OTT technology firms to start charging a VAT for their services in Indonesia starting Sept. 1. Expanding the list of OTT firms could potentially increase the state’s tax rev...
Mitsui to exit from Paiton Energy, shifts from fossils to renewables
The end is near for Japan-based Mitsui Group’s investment in coal-fired power plants (PLTUs). The group’s general trading company Mitsui & Co. is weighing up selling its stake in PT Paiton Energy, one of the biggest independent power producers (IPP)...
Syahrul replaces livestock director general after intense lobbying
The Agriculture Ministry successfully avoided a major economic disaster, a chicken oversupply crisis caused by the COVID-19 pandemic, by forming a coalition of private poultry companies and poultry farmers associations to rescue the industry. Neverth...
Govt revises PEN regulation as recession looms
Coordinating Economic Minister Airlangga Hartarto predicted the Indonesian economy to record a 1 percent contraction in the third quarter of 2020, sending the country into a technical recession. To prevent the economy from contracting further, Airla...
BPJS Kesehatan deficit may end as MA supports premium hike
BPJS Kesehatan has been suffering big deficits every year since its launch in 2014. And last year, the deficit swelled to Rp 17 trillion from Rp 10.9 trillion in 2018, bringing the total cumulative deficit to Rp 50.9 trillion by the end of last year....
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