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Tenggara Backgrounder October 23, 2020
POLITICS
Govt moves fast to draft jobs law's implementing regulations
Despite the relentless protests against the Job Creation Law, President Joko “Jokowi” Widodo has ordered his ministers to draft implementing regulations required to enforce the law. Jokowi said the drafts must be completed within a month.
Islamic groups against jobs law, govt’s legitimacy questioned
Stiff opposition to the recently passed Job Creation Law has come from multiple layers of the society. One of the strongest sources of rejection comes from prominent Islamic groups, namely Nahdlatul Ulama (NU), Muhammadiyah and the Indonesian Ulema C...
KAMI's ambition undeterred by arrests
In the two months since its formation, the Save Indonesia Coalition (KAMI) has strived to be more than a blip on the public’s radar. The police meanwhile have arrested eight members of the coalition for allegedly spreading hate speech amid recent mas...
Jokowi going strong and still popular after chaotic year
Joko “Jokowi” Widodo began the second year of his second term as President this week in a position that would be the envy of any democratically elected leader. He has survived what was essentially a chaotic year, what with the COVID-19 pandemic and a...
BUSSINES & ECONOMICS
Job Creation Law to attract investment with $5b SWF
With the passing of the omnibus Job Creation Law, Indonesia now has the legal basis to establish its sovereign wealth fund. The fund will be named the Indonesia Investment Authority (LPI) and launched in January next year. The government is currently...
State-owned sharia banks’ merger to compete globally
State-owned sharia banks have signed a conditional merger agreement to create a jumbo sharia bank that will compete in the regional and global market. Bank Syariah Mandiri, BNI Syariah and Bank BRI Syariah will merge with combined assets worth Rp 214...
Mandiri’s treasury chief appointed CEO, beating out three candidates
The government as the largest shareholder of publicly listed Bank Mandiri appointed the bank’s treasury chief Darmawan Junaidi as its new CEO during an extraordinary shareholders meeting on Wednesday. Darmawan will steer the bank during the pandemic...
Depreciation pressure on rupiah subsides, opening room for rate cut
Capital outflows from Indonesia finally eased in late September, turning into a capital inflow from early October. As a result, the rupiah exchange rate appreciated to the level of Rp 14,633 per United States dollar on Oct. 21, from Rp 14,900 on Sept...
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