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Backgrounder
Tenggara Backgrounder June 26, 2020
POLITICS
Indonesia braces for COVID-19 second wave
The upbeat mood in Indonesia at the start of the month when people were looking forward to resuming life under the “new normal” has been subdued, with the government warning of a second wave of COVID-19. As Indonesia slowly lifts restrictions to allo...
Pancasila bill sparks ‘red’ scare, reinforces parties’ political interests
Ongoing squabbles between political parties and other influential groups over the Pancasila Ideology Guidelines bill (RUU HIP) have brought into light the widening fracture between political elites in planning for the country's future. Looking at the...
Regional elections to go ahead despite budgetary hurdles
With the government insisting that simultaneous regional elections take place on Dec. 9, the General Elections Commission (KPU) has been scrambling to prepare for the event under a tight deadline. However, critics have cast doubt over the country’s r...
Defense budget constraint results in catastrophic accidents
Multiple aircraft crashes within less than two weeks recently are only some of many accidents involving Indonesian Military (TNI) war machines in the past years. The crashes, which claimed lives, only suggest the need for new investment in the defens...
BUSSINES & ECONOMICS
Telkom appoints millennial startup founder as digital business director
The latest display of the government’s fondness of technology startups is the appointment of Fajrin Rasyid, cofounder and CEO of e-commerce unicorn Bukalapak, as a director of state-owned telecommunication firm PT Telekomunikasi Indonesia (Telkom). T...
Indonesia haphazard in attracting relocations from China
Indonesia needs to ramp up its efforts to attract American, Japanese and South Korean companies that plan to relocate production out of China. The government is undecided in regard to which industrial estate it will develop or choose to attract the r...
Protesters fail to stop arrival of Chinese VDNI Workers
In a surprising reversal, Southeast Sulawesi Governor Ali Mazi and the province’s Regional Legislative Council speaker Abdurrahman Saleh have authorized Chinese-backed mining company PT Virtue Dragon Nickel Industry (VDNI) and PT Obsidian Stainless S...
BI cuts rate again as rupiah stabilizes
After keeping its seven-day reserve repo rate (7DRRR) unchanged for three months, Bank Indonesia (BI) finally decided to cut it again by 25 basis points (bps) to 4.25 percent on June 18. The decision was made not only to avoid a deep economic recessi...
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