It was a very exciting afternoon and evening on Friday (09 August 2018), especially for those who follow contemporary Indonesian politics as well as those who love sinetron (Indonesian soap operas) since there occurred plenty of drama. At the end of the day it became clear that two pairs (consisting of a presidential and vice-presidential candidate) will compete in the 2019 presidential election: (1) Joko Widodo and Ma'ruf Amin versus (2) Prabowo Subianto and Sandiaga Uno.

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Although overshadowed by the news of the devastating earthquake in Lombok, Statistics Indonesia (BPS) released the official Q2-2018 gross domestic product (GDP) growth figure of Indonesia earlier today. The economy of Indonesia expanded 5.27 percent year-on-year (y/y) in the second quarter of 2018. This growth pace exceeds our expectations although it is not enough to necessitate a revision to our full-year 2018 GDP growth forecast of 5.2 percent (y/y).

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Only a few months after the Indonesian government had imposed a price cap on mandatory sales of local coal to Indonesia's state-owned electricity company Perusahaan Listrik Negara (PLN) under the domestic market obligation (DMO) scheme, the government now plans to revise this regulation. Coming Tuesday (31/07) a high-level meeting is to take place where decisions will be taken.

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Traditionally the Indonesian government wants to raise spending on social assistance programs when legislative and presidential elections are around the corner in an attempt to become more popular, hence attract more votes. The government under the leadership of Joko Widodo also plans to use this strategy.

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