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Backgrounder
Tenggara Backgrounder September 24, 2021
POLITICS
Indonesia in delicate balancing act as tensions rise in South China Sea
Indonesia’s idea of a diplomatic balancing act amid the rising tensions in the South China Sea is to speak out against the United States and its allies but to be more circumspect in dealing with China, even amid reports of the sighting of Chinese war...
Oil palm moratorium – extension needed to be effective
In a bid to slow the country’s deforestation rate caused by the expansion of oil palm plantations while also boosting productivity from existing cultivated areas, President Joko “Jokowi” Widodo issued a moratorium on new oil palm permits in 2018. The...
Indonesia to keep climate pledge without Norway’s aid
Indonesia called off its 11-year-pact to reduce carbon emissions with Norway on Sept. 10, after the European partner failed to pay the agreed US$56 million under the Reducing Emissions from Deforestation and Forest Degradation (REDD+) scheme. Though...
KPK fires employees, risks decline in public trust
The Corruption Eradication Commission (KPK) has dismissed the 51 employees who failed the controversial civic knowledge test, including senior investigator Novel Baswedan, as well as six others who passed the test but refused to undergo the mandatory...
BUSSINES & ECONOMICS
Pertamina's $3.5 billion petrochemical project controversy
Pertamina, through its petrochemical subsidiary PT Trans-Pacific Petrochemical Indotama (TPPI), has begun work on US$3.5 billion project to expand its refinery in Tuban, East Java. The Olefin Complex Development Project (OCDP) was intended to cut Ind...
Edward Soeryadjaya and two new suspects in Asabri case
Businessman Edward Soeryadjaya has become the latest suspect in a major corruption scandal surrounding alleged fraud in Asuransi Sosial Angkatan Bersenjata Republik Indonesia (Asabri). Edward was named a suspect in the Asabri case along with Betty Ha...
Trade, Agriculture ministries in spat over soaring animal feed price
The Trade Ministry is preparing Rp 45 billion (US$3.16 million) to subsidize 30,000 tons of corn amid soaring prices despite claims by the Agriculture Ministry that there is sufficient domestic stock. The rising corn price has affected chicken farmer...
BRI holds nation’s largest rights issuance to develop ultra-micro ecosystem
Bank Rakyat Indonesia (BRI) is issuing rights to raise Rp 95.92 trillion (US$6.6 billion), the biggest in the history of Indonesian capital markets, to complete its acquisition of two other state-owned financial companies targeting micro, small and m...
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