Tenggara Backgrounder February 15

Conspiracy theories & foreign meddling in elections

When President Joko “Jokowi” Widodo on Feb. 3 talked about the use of “Russian Propaganda” by the opposition in the presidential election campaign, he upset the Russian government more than he hurt the lone challenger, Prabowo Subianto, for the April 17 election. The episode played into conspiracy theories of foreign governments trying to influence the outcome of the elections.

Indonesia-Switzerland MLA treaty: Will it work?

After years of negotiation, Indonesia and Switzerland signed a bilateral agreement on mutual legal assistance (MLA) relating to international financial crimes such as corruption and money laundering. The MLA treaty has been warmly welcomed as it is expected to assist the complicated process of detangling financial crimes in the country. Looking at the precedents, however, it appears that Indonesia still has a long way to go before legal assistance can be effectively enforced.

Jakarta in hot water

Jakarta Governor Anies Baswedan said on Monday that Jakarta would gradually take over tap water management from private operators PT Pam Lyonnaise Jaya (Palyja) and PT Aetra Air Jakarta despite a recent Supreme Court ruling that approved the continuation of water privatization. Anies assigned city-owned water company PAM Jaya to negotiate the terms with both Palyja and Aetra and complete the head of agreements by end of March.

Cement industry to see clash of titans

The expansion of Chinese cement producers in Indonesia may squeeze local players. Considering the ongoing cement oversupply, the news about Chinese cement producers’ entry to Indonesia and their predatory pricing strategy is very likely to spark fierce competition in the industry.