Tenggara Backgrounder January 25

First presidential debate: Normative or in progress?

The first official presidential debate on Jan. 17 drew criticism. Critics argue that the debate was too general, or even borderline boring, as candidates offered no new programs or fresh ideas throughout the debate. The narrative delivered in the first debate, however, may foreshadow the course of the upcoming debates.

Public transportation winning the road race against private vehicles

The arrival of the MRT and light rapid transit (LRT) marks the beginning for public transportation winning the road race against private vehicles in Jakarta. But with the coming inauguration of these two massive projects, questions are now being raised, including from no less than Vice President Jusuf Kalla, about the huge costs and length of time needed to build them.

Regulation targets major e-commerce companies, not MSMEs

On Jan. 12, the Finance Ministry’s Taxation Directorate General enacted the long-awaited e-commerce taxation regulation, Finance Ministerial Regulation No. 210/2018, which will be fully implemented on April 1. Although the regulation looks good on paper, there is serious concern about the implementation and enforcement of this regulation, particularly on merchants and service providers.

Issue Update: Batam’s fate lies on politicians’ wager

The government decided late December to transfer the control of BP Batam to the mayor of Batam to solve the problem of dualism in Batam’s governance system, which was blamed for the slump in investment and economic growth on the island. The government has also decided to scrap Batam’s FTZ status and planned to build three special economic zones (SEZs). The debacle behind the Batam mayoralty and BP Batam now continues after several executives in Jakarta were reported to have pulled their strings to protect their proxy’s interests.