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Berita Hari Ini Governance
On 6 September 2022 Indonesia Investments released the August 2022 edition of its monthly report. In this report we analyze the latest (and most relevant) economic, political and social news from Indonesia.
For Muslims the holy fasting month (Ramadan) and subsequent Eid al-Fitr (Idul Fitri or Lebaran) festivities – the traditional week-long national holiday when Muslims celebrate the end of the Ramadan month – are very special and joyful times.
It is assumed by many that the Indonesian government does not make efficient use of the annual state budgets. This is also the reason why Indonesian President Joko Widodo stated recently that one of his key ambitions for the next five years is to make more efficient use of the state budget (“each rupiah of the state budget needs to be used productively”).
In late April 2019 it was rather suddenly announced that President Joko Widodo wants to move the capital city away from Jakarta (in fact, he even wants to move the capital away from Java Island).
The Indonesian government launched the One Map Policy Geoportal (KSP Geoportal). This policy involves a more detailed map of land use, hence aiming at resolving overlapping claims - as well as preventing the emergence of new cases - across the country, including in forest areas. The map was launched by Indonesian President Joko Widodo on Tuesday (11/12).
Although in local media Indonesian property developer Lippo Cikarang is aggressively advertising its ambitious Meikarta project to the consumer, there is uncertainty whether the developer indeed collected all necessary permits required to construct the new township. Meikarta is marketed as a 500-hectare property development project with 100 hectares of open green space, 250,000 units of prime residential property, and 1,500,000 m2 of prime commercial space.
Not the lack of (soft and hard) infrastructure development in Indonesia, or the lack of quality human resources, nor corruption or protectionism but the difficulty to obtain the necessary permits from the local governments are the biggest obstacle to investment and business in Indonesia according to a survey that was conducted by the Regional Autonomy Watch (KPPOD) in the 32 regional capital cities across the Archipelago.
A survey from Saiful Mujani Research and Consulting (SMRC) shows that Indonesians' confidence in the performance of President Joko Widodo's government has risen. The survey signals that some 67 percent of the Indonesian population are satisfied with the government's performance, significantly higher compared to 42 percent in 2015. Reform-minded Widodo, often called Jokowi, has been in office since October 2014. However, he has to guide the nation amid global and domestic challenges (sluggish economic growth, low commodity prices and monetary policy changes of key central banks that trigger capital inflows/outflows).
R. Sukhyar, Director of Mineral and Coal at the Indonesian Energy and Mineral Resources Ministry said that 184 mining business licenses (Indonesian: Izin Usaha Pertambangan, or IUP), needed for exploration and mining activities, have been revoked this June because of overlapping mining areas and illegal administration. The revoked permits concerned mining areas in Jambi (99 revoked licenses), South Sumatra (83), and South Sulawesi (2). This case is another illustration of weak governance in Southeast Asia’s largest economy.
Today, most Indonesian newspapers opened with negative headlines concerning the country's political arena. In Indonesian politics, scandals - whether connected to corruption or other issues - are frequently reported and seriously undermine people's (both domestic and foreign) confidence in the nation's governance. In today's newspapers, three cases were center of attention and illustrate the problems within Indonesia's political elite.
Artikel Terbaru Governance
Indonesian Minister of Energy and Mineral Resources Jero Wacik regrets to see Newmont Nusa Tenggara, one of Indonesia largest copper miners, file for international arbitration due to Indonesia’s export ban stipulated by Law 4/2009 on Mineral and Coal Mining (Minerba). This new law includes the ban on exports of ore concentrates from Southeast Asia’s largest economy. Instead, Indonesian miners are required to process the minerals domestically first. The ban was implemented on 12 January 2014.
Improving the quality of basic education remains a central challenge in Indonesia. Without a good quality basic education, children will fail to acquire the skills they need to lead full and productive lives. Indonesia will then be challenged to build the human resources necessary to sustain strong economic growth. On 25 November 2013, the World Bank released a new report which explores how the quality of local governance affects service delivery and assesses the capacity of local governments to manage education services effectively.
In my previous column, I outlined the emergence of a new and promising class of Indonesian consumers that is most likely to bring a positive effect on the country's economic growth in the years ahead. I also pointed out that the level of prosperity of a population is an influential factor towards the state (and future) of democracy in a country: the wealthier a population becomes in terms of per capita GDP, the longer the life expectancy of its democracy will be.
