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Backgrounder
Tenggara Backgrounder May 22, 2020
POLITICS
Govt considers follow-up actions amid limited impacts of PSBB
Weeks after the large-scale social restrictions (PSBB) came into force in some regions across the country, the central government and regional administrations are still scrambling to plan follow-up actions as the policy is considered unsustainable fo...
Inconsistencies, confusion surrounds universal health policy
In a controversial move, President Jokowi announced that he would yet again increase the premiums of the Health Care and Social Security Agency (BPJS Kesehatan). The hike has prompted a public backlash, accusing the government of policy inconsistency...
Uncertainty prevails over regional elections’ postponement
The government has officially postponed this year’s simultaneous regional elections from Sept. 23 to Dec. 9 due to the COVID-19 outbreak. As the health crisis shows no sign of abating, the possibility of another delay remains, creating uncertainty ov...
Eid at home
Forget tradition. This year Indonesian Muslims will mark Eid, the end of the Ramadan fasting month, in a dramatically different way, as a result of the COVID-19 pandemic. The celebrations, feasts and fanfares that normally come with Eid are gone. Als...
BUSSINES & ECONOMICS
Finance Ministry hastens digital tax implementation
On May 5, Finance Minister Sri Mulyani Indrawati signed Finance Ministerial Regulation (PMK) No. 48/PMK.03/2020, which regulates the collection of value-added tax (VAT) on imported digital goods and services. As stipulated in the first paragraph of A...
RI lacks pull factor in US companies’ relocation plan
President Joko “Jokowi” Widodo and the United States President Donald Trump were recently in talks to relocate US pharmaceutical companies in China to Indonesia. His righthand man, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaita...
Govt intervenes as PLN struggles to pay debts
The government has revamped the management of state electricity company PLN and plans to inject Rp 50 trillion (US$ 3.3 billion) in fresh funds into the company as it is facing a default in its debt payment.
Continuing spread of COVID-19 threatens plans to reopen economy
Over the past month, the government has floated the idea of reopening the economy. However, the emergence of new COVID-19 hotspots outside Jakarta, with the heavily populated province of East Java at center stage, raises doubts about the feasibility...
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