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Backgrounder
Tenggara Backgrounder February 14, 2020
POLITICS
Govt, House press forward amid outcry over omnibus bill
First announced last November, the government’s plan to draft omnibus bills on numerous subject matters have come in for public censure. The omnibus bill on job creation, in particular, has prompted opposition from labor unions, which claim the bill,...
National security trumps humanitarianism with regard to IS
President Jokowi has rejected an initiative by one of his Cabinet ministers to bring home 689 Indonesians who joined the Islamic State (IS) group but are now lingering in refugee detention camps in Syria and Turkey. Jokowi ignored pleas for compassio...
Gibran faces last hurdle in mayoral bid
As the 2020 regional elections move an inch closer, Gibran Rakabuming is keeping alive his hope to emulate his father, President Jokowi, who started his political career as the Surakarta mayor. Having secured the support of many parties, Jokowi’s eld...
More political bigwigs, businessmen grace Presidential Office
In a sudden turn of events, Presidential Chief of Staff Moeldoko appointed 13 new senior advisors for the Presidential Office (KSP). From political bigwigs to higher ups in the private sector, the appointments do not only seem to contradict President...
BUSSINES & ECONOMICS
Questioning Krakatau Steel’s divestment plan
State-owned steel producer PT Krakatau Steel has restructured US$2 billion of debt, considered the biggest debt restructuring in Indonesia’s history. As part of its restructuring, it has to pay $300 million this year, yet the company is still scrambl...
Job creation omnibus bill relaxes labor rules
The job creation omnibus bill amends the 2003 Manpower Law particularly on six issues: foreign workers, temporary workers (PKWT), outsourcing, working hours, wage setting and lay-offs. To ease the regulation on employing foreign workers, the bill abo...
OJK finally approves Ilham Habibie to control Muamalat
The Financial Services Authority (OJK) has no other choice but to approve a proposal from Ilham Habibie to become the new controlling shareholder of ailing PT Bank Muamalat Indonesia through Al Falah Investments Pte. Ltd, following a rights issuance.
Pressure on BI to deliver rate cut
Bank Indonesia faces a growing pressure to deliver a rate cut in the monthly board of governors meeting next week due to a combination of weak gross domestic product (GDP) growth and the adverse impact of the coronavirus outbreak.
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