Tenggara Backgrounder August 2, 2019

All Megawati's men

Overview - An unexpected meeting between Indonesian Democratic Party of Struggle (PDI-P) matriarch Megawati Soekarnoputri and Gerindra chairman Prabowo Subianto proves that Megawati still has what it takes. Megawati, however, does not navigate her way alone; several notable men have flanked her maneuvers.

 
Four routes to Jokowi's new cabinet

Overview - As speculation and rumors surrounding President Joko “Jokowi” Widodo’s plan to reshuffle his cabinet fly around, political lobbies among the elites for the ministerial posts are still ongoing. Those who are interested can reportedly secure the posts through four “channels”.

PKB, PPP fight over religious affairs minister seat

Overview - Tensions have simmered between political parties as reelected President Joko “Jokowi” Widodo prepares his upcoming cabinet. Engaged in the latest din were the National Awakening Party (PKB) and the United Development Party (PPP), with both parties fighting over the religious affairs minister seat.
 

Jokowi a step closer to dissolving hardline group

Overview - Since its permit expired on June 20, hardline mass organization the Islam Defenders Front (FPI) has been waiting for the government to grant its request for a permit renewal. While the government has yet to announce its final decision, President Joko “Jokowi” Widodo recently spoke of the huge possibility for the government to not extend the group’s permit.

PT Pos struggles with cash flow and employee benefits

Overview - Postal services all over the world, including Pos Indonesia, reportedly suffered under technological disruption due to the rise of e-commerce. In the case of Pos Indonesia, cashflow issue and the management’s attempt to cut back employee benefits might be the main culprits.

Palace rejects Arviyan Arifin for PLN to post

Overview - The State Palace has reportedly rejected the nomination of Arviyan Arifin to lead state-owned electricity company PLN because of his role in causing Bank Muamalat’s deep financial difficulties. The State-Owned Enterprises Ministry will need to propose another name to President Joko “Jokowi” Widodo.

Govt gives Pertamina three-year transition to operate Corridor

Overview - The government has given its blessing to US oil and gas company ConocoPhillips to remain the operator of the onshore Corridor block in South Sumatra until 2026. It is reported that the reappointment of ConocoPhillips as the operator of the Corridor block after the contract expired in 2023 was a middle ground before the operatorship of the oil and gas area was handed over to Pertamina.

The Fed delivers rate cut, but Powell's speech disappoints market

Overview - The United States Federal Reserve cut the Fed Funds Rate by 25 basis points (bps) to the 2–2.25 per-cent range following the Federal Open Market Committee (FOMC) meeting from 30–31 July. Never-theless, the market reacted unfavorably with a selloff.