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Backgrounder
Tenggara Backgrounder August 30, 2019
POLITICS
Jakarta faces growing resistance in resource-rich Papua
President Joko “Jokowi” Widodo has invested a lot of resources, as well as his personal time and energy, in the last five years in developing Papua and trying to raise the welfare of the people. There is justification: Papuans count among the poorest...
Golkar leadership race divides party yet again
Ahead of its national congress, the Golkar Party’s schism has appeared to intensify. The party’s chairmanship is bitterly contested by the incumbent, Airlangga Hartarto, who is the industry minister, and House of Representatives Speaker Bambang Soesa...
Jokowi starts building his own monument
President Joko “Jokowi” Widodo is moving closer to realizing what will be his immortalized legacy as he announced on Aug. 26 the location for the new capital city. The announcement testifies to Jokowi’s guarded confidence in the relocation plan. His...
Defense tops government spending despite lack of transparency
Contrary to popular belief, the Indonesian Military (TNI) is thriving, at least financially, under current administration, evidenced by continuous increases in the defense budget. Allocation process of the defense budget, however, needs more transpar...
BUSSINES & ECONOMICS
Firms upbeat about developing new capital city, driving up land prices
President Joko “Jokowi” Widodo revealed on Monday that the country's new capital city will be located in Kutai Kartanegara and North Penajam Paser regencies in East Kalimantan, with funding for the relocation relying more on the private sector and st...
Indonesia enters 5G era, preferred frequencies all occupied
The Communications and Information Ministry has announced that it will be testing 5G technology but is still confused which frequency spectrum to use — 700 megahertz (MHz) or 2.6 gigahertz (GHz) — as both are controlled by politically powerful busine...
Gov’t increases premiums to solve healthcare funding deficit
In a decisive move to solve the Health Care and Social Security Fund (DJS Kesehatan) deficit, Finance Minister Sri Mulyani Indrawati announced a sharp increase in Health Care and Social Security Agency (BPJS Kesehatan) premiums.
BI pursues aggressive expansionary policy to stimulate flagging economy
Bank Indonesia surprised the market last week with another rate cut in the seven-day reverse repo rate by 25 basis points to 5.5 percent. BI’s new deputy governor Destroy Damayanti said the central bank would keep easing its monetary policy to counte...
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