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Berita Hari Ini Politics

  • Kadin: Indonesia Can Take Advantage of Political Turmoil in Thailand

    The political turmoil that has been plaguing Thailand since 2006 can become an advantage for Indonesia if the country manages to attract investors that were previously engaged in business or exploring business activities in Thailand. Although Indonesian politics are characterized by a certain level of uncertainty as well, particularly ahead of the upcoming July presidential election, the political situation is much more under control in Indonesia. Thailand, Singapore and Malaysia are Indonesia's greatest economic rivals in Southeast Asia.

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  • What is on the Political Agenda of Joko Widodo and Prabowo Subianto?

    With the presidential election of Indonesia (scheduled for 9 July) becoming a battle between Governor of Jakarta Joko Widodo, popularly known as Jokowi, and former army general and Suharto crony Prabowo Subianto, it is worth taking a closer look into the ideas and policies that both candidates would like to implement if elected as the next Indonesian president, as well as their stance on specific economic issues. The viewpoints that are mentioned below are based on the documents that both parties provided to the General Election Commission.

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  • PDI-P Declares Coalition & Jokowi's Candidacy; Rupiah and Stocks Surge

    Both the Indonesian rupiah exchange rate and the country's benchmark stock index (known as the Jakarta Composite Index or IHSG) have strengthened significantly on Wednesday's trading day (14/05). The rupiah appreciated 0.76 percent to IDR 11,450 per US dollar by 15:00 local Jakarta time according to the Bloomberg Dollar Index. Meanwhile, the IHSG gained 1.09 percent to 4,975.13 by the same time. Main reason for this strong performance is the official declaration of the PDI-P to form a coalition with NasDem and PKB.

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  • Indonesia Presidential Election Update: Jokowi-Kalla versus Prabowo-Hatta?

    The Indonesian presidential election, scheduled for 9 July 2014, is most likely to become a battle between Joko "Jokowi" Widodo and Prabowo Subianto. Although this had already been expected as both men can rely on popular support (according to various surveys) and have the political backing of important political parties, a number of developments on Tuesday (13/05) seem to confirm this expectation. Moreover, there is more clarity about the vice-presidential candidates that will join the July election.

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  • Hatta Rajasa Pairs with Prabowo Subianto in Presidential Election?

    In Indonesian media it was reported today (13/05) that Hatta Rajasa, the current Coordinating Minister for Economic Affairs, will meet President Susilo Bambang Yudhoyono this afternoon. It is speculated that in this meeting Rajasa wil ask permission to resign from his post in order to be able to run as Prabowo Subianto's running mate in the presidential election (9 July 2014). A 2008 law stipulates that ministers need to resign when participating in the election (as presidential or vice-presidential candidate) to avert a possible conflict of interest.

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  • Official Result of the Indonesian Legislative Election 2014 Released

    Only minutes ahead of the deadline on Friday (09/05), the General Election Commission (KPU) released the official results of Indonesia’s 2014 legislative election. As had been expected, the official result is highly similar to the quick count results that had been published on the day of election (09/04). The current main opposition party the Indonesian Democratic Party of Struggle (PDI-P) won the election, securing 18.95 percent of the vote, followed by Golkar (14.75 percent) and the Great Indonesia Movement Party (Gerindra) with 11.81 percent.

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  • Running Mate of Jokowi for Indonesian Presidential Election Announced Soon

    Indonesian newspaper Investor Daily reported that on Friday 9 May 2014 Joko Widodo, the presidential candidate of the PDI-P (winner of the April 2014 legislative election), will announce his running mate for the presidential election. According to the newspaper, Surya Paloh - founder of the NasDem party - said that the running mate (vice-presidential candidate) has already been agreed upon although he declined to mention a name. The PDI-P and NasDem formed a coalition last month in order to nominate a presidential candidate.

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  • Joko Widodo Expected to Announce Running Mate for Indonesian Elections

    Although Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) fell immediately after its opening on Monday (28/04), the index is expected to strengthen this week as Joko 'Jokowi' Widodo will announce his running mate for the 2014 presidential election. Jokowi is the presidential nominee of the PDI-P party (the largest opposition party in the Indonesian parliament), which won the legislative election in April 2014 by securing about 19 percent of the popular vote.

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  • IMF Hopes that Indonesia Will Continue the Economic Reform Agenda

    The International Monetary Fund (IMF) praised the Indonesian government's policy approach to safeguard the country's financial stability amid external shocks in 2013 and hopes that the new government, which will be inaugurated in October 2014, continues the economic reform agenda. Changyong Rhee, Director of the IMF's Asia Pacific Department, said that Indonesia - Southeast Asia's largest economy - is currently on the right track and forecast to grow 5.4 percent in 2014, slightly lower than the 5.78 percentage growth in 2013.

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  • Indonesia Investments' Newsletter of 13 April 2014 Released

    On 13 April 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Due to the legislative election on Wednesday (09/04), this newsletter has a main focus on politics. Other topics include the benchmark interest rate, gross domestic product (GDP) growth, car & motorcycle sales, a profile of Astra International, and more.

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Artikel Terbaru Politics

  • Indonesian Stocks & Rupiah Strengthen on Politics and Fuel Price Hike

    Indonesian stocks and the rupiah have rebounded on Friday due to several internal and external factors. During the first trading session on Friday (17/10), the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) surged 0.94 percent to 4,998.14 points. Meanwhile, based on the Bloomberg Dollar Index, the Indonesian rupiah exchange rate had appreciated 0.26 percent to IDR 12,228 per US dollar by 12:30 pm local Jakarta time. Why do Indonesian stocks and the rupiah perform well on Friday?

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  • Moody’s Investors Service Positive about Indonesia’s Economy

    Global credit rating agency Moody’s Investors Service stated that it maintains a stable outlook for Indonesia’s sovereign and corporate debt rating in the next quarters due to the country’s healthy credit fundamentals, solid macroeconomy, and reduced political tensions. Moody’s believes that Indonesia’s fundamentals are strong enough to offset the negative impact of external pressures such as looming higher US interest rates and slowing economic growth in China. Moody’s had raised Indonesia’s sovereign debt rating to investment grade in late 2011.

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  • Performance of the Indonesian Rupiah & Stocks in the Past Week

    Amid political uncertainty and a looming increase in US interest rates, Indonesian stocks and the rupiah exchange rate weakened considerably in the past week. Market participants are increasingly concerned about the situation in Indonesia’s parliament where a majority of political parties - named the Merah-Putih coalition (led by defeated presidential candidate Prabowo Subianto) - is expected to undermine president-elect Joko Widodo’s reform programs as well as the democratic foundations of the country.

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  • Stock Market Update Indonesia: Down on Politics and Global Data

    Indonesian stocks plunged considerably on Thursday (02/10). The country’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) declined 2.73 percent to 5,000.81 points, the largest drop in almost six months. This poor performance was caused by both external and internal factors. Externally, various weak economic data from the USA and Europe as well as an appreciating yen impacted negatively on Asian stock indices. Internally, market participants responded negatively toward the inauguration of the new parliament.

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  • Battle Jokowi-Prabowo; Democratic Future of Indonesia in Jeopardy?

    More and more concerns have arisen recently regarding the democratic future of Indonesia. In fact, some media have reported that an impeachment of president-elect Joko Widodo, who will assume office on 20 October 2014, could become a reality as opposition in parliament - led by controversial and vindictive former army general Prabowo Subianto - is large. The Merah-Putih coalition, referring to the coalition of political parties that supported Subianto in the presidential election (which he narrowly lost to Widodo) will control 353 of the 560 seats in parliament.

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  • Prabowo Subianto Coalition Accepts Indonesia’s Constitutional Court Verdict

    It took almost six hours for the Constitutional Court of Indonesia (Mahkamah Konstitusi) on Thursday (21/08) to read out 300 pages of a lengthy 4,392-page verdict in the case filed by defeated presidential candidate Prabowo Subianto, who claimed that the result of Indonesia’s July 2014 presidential election was invalid due to widespread violations and fraud that allegedly occurred during the voting and counting processes. During the read out it became increasingly clear that the court would reject Subianto’s claims due to a lack of evidence.

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  • Constitutional Court Ruling: Prabowo Subianto Not Expected to Accept Defeat

    At 14:00 pm local Jakarta time zone, Indonesia’s Constitutional Court (Mahkamah Konstitusi) is expected to announce its decision on Prabowo Subianto’s election result challenge. The defeated presidential candidate filed a court case claiming that massive fraud and violations took place amid the voting and counting processes in the context of Indonesia’s July 2014 presidential election, won by Joko Widodo (securing 53.15 percent of the votes). Although the court’s decision is final and legally binding, Subianto not expected to surrender yet.

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  • Elections Signals Big Questions on Indonesia's Future Democracy

    Recent elections in Indonesia have met with a great deal of attention and look to be a decisive moment for the country. We are looking at a country that has major financial problems and also is making a decision about the direction of its democracy. Prabowo Subianto has pledged to conduct a rollback in some of the aspects of Indonesia’s democracy. So the supporters of Indonesian democracy will be watching very closely to see how the recent election events will unfold.

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  • Quick Count Results Indonesian Election Mostly in Favour of Jokowi

    As had been predicted previously by various popularity surveys, the outcome of the Indonesian presidential election, a race between Joko Widodo (known as Jokowi) and Prabowo Subianto, was close. In fact, after the unofficial yet reliable quick count results had been collected, both camps claimed a victory. However, the majority of the quick count results show a Jokowi victory with a margin of about five to six percentage points. On 22 July 2014, the Indonesian General Elections Commission (KPU) will announce the official result.

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  • Why Are Foreign Investors Concerned about a Prabowo Subianto Win?

    The result of Indonesia’s presidential election (scheduled for 9 July 2014), which has become a tight race between Prabowo Subianto and Joko Widodo (Jokowi), will for sure have a large impact on foreign investors’ confidence in Indonesian politics and the economy. A few weeks ago, a survey of Deutsche Bank showed that a majority of respondents (consisting of foreign investors) intend to sell their Indonesian assets if controversial candidate Prabowo Subianto will be elected. What are foreigners’ perceptions of a Subianto win?

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