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Today's Headlines Politics

  • Politics Indonesia: Joko Widodo to Decide for another Cabinet Reshuffle?

    Politics Indonesia: Joko Widodo to Decide for another Cabinet Reshuffle?

    There has been rising speculation in Indonesia in recent months that Indonesian President Joko Widodo will decide for another cabinet reshuffle as several ministers are held responsible for the disappointing performance of their ministries (that have reacted too slow to implement new government guidelines, for example those guidelines set in the series of economic policy packages that have been released since September 2015). On 12 August 2015, Widodo had already reshuffled his cabinet, replacing six ministers.

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  • Regional Elections in Indonesia: Indonesia Votes for Local Leaders

    Regional Elections in Indonesia: Indonesia Votes for Local Leaders

    Today (09/12) millions of Indonesians head to the ballot boxes to vote for new regional leaders i.e. nine provincial governors, 36 mayors, and 224 district heads. These elections are important as the process of decentralization in the post-Suharto era has transferred considerable authority and power to the regions. As such, the regions now have a larger role and greater responsibility regarding economic development. Around 100 million people are eligible to cast a vote in the world's third-largest democracy. Today, 9 December 2015, has been declared a public national holiday.

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  • Politics of Indonesia: House Approves 2016 State Budget

    Politics of Indonesia: House Approves 2016 State Budget

    Late on Friday evening (30/10), after 11 hours of discussion, Indonesia's House of Representatives (DPR) approved the 2016 State Budget. This is good news for the government as it now has the opportunity to reform fiscal policy and continue with its development programs. The government budget deficit is expected to rise to 2.15 percent of the country's gross domestic product (from 1.9 percent of GDP in the revised 2015 edition), a bit closer to the maximum three-percent-of-GDP rule that is allowed by Indonesian law.

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  • Joko Widodo Presents Indonesia’s 2016 State Budget Draft in Parliament

    Joko Widodo Presents Indonesia’s 2016 State Budget Draft in Parliament

    On Friday (14/08) the Indonesian government unveiled its 2016 State Budget draft at a session in the House of Representatives (DPR). The draft is important as it shows government targets regarding the macroeconomy of Indonesia and it shows on what fields the government will focus in terms of public spending. The government - led by Indonesian President Joko Widodo - is optimistic that economic growth will finally rebound after four years of slowing economic growth as its 2016 GDP growth target was set at 5.5 percent (y/y).

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  • Political News Indonesia: Joko Widodo Reshuffles Cabinet

    Political News Indonesia: Joko Widodo Reshuffles Cabinet

    Nearly one year after inauguration, Indonesian President Joko Widodo reshuffled his cabinet on Wednesday (12/08) due to the perceived disappointing performance of several ministers as Indonesia’s economy has continued to slow in 2015. Widodo installed six new ministers in a ceremony at the State Palace in Jakarta. The reshuffle aims to boost investors’ confidence in Indonesian assets. Today, the rupiah and Indonesian stocks are weakening severely due to China’s decision to devalue its yuan.

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  • Indonesian Stocks & Rupiah Down on China’s Yuan Devaluation

    Indonesian Stocks & Rupiah Down on China’s Yuan Devaluation

    Indonesian stocks are experiencing a remarkable fall on Tuesday (11/08). In the first trading session, the benchmark stock index (Jakarta Composite Index) plunged 2.15 percent to 4,646.95, its lowest level since early March 2014 and leading declines among Southeast Asian stock indices. Stocks in Asia have been hit by China’s decision to allow its currency to weaken against the US dollar (the yuan fell 1.6 percent against the US dollar after the move dragging down other Asian currencies including the Indonesian rupiah).

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  • Will Indonesia Ban Consumption & Distribution of Alcohol?

    Will Indonesia Ban Consumption & Distribution of Alcohol?

    After having banned the sale of alcoholic drinks in minimarkets, Indonesia may see the birth of another law concerning alcohol. Several secular and Islamic political parties seem to back a bill prohibiting the sale, production, distribution and consumption of drinks that contain over 1 percent alcohol. This bill is among the 37 so-called priority bills expected to be passed this year. Although the new bill had been first proposed in 2012 by two Islamic parties - National Development Party (PPP) and Prosperous Justice Party (PKS) - it had laid on the shelf.

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  • Political Update: Pact Awesome Indonesia & Red-White Coalitions

    Tensions within Indonesian parliament may have eased after the two opposing coalitions signed a limited power-sharing pact on Monday (17/11) after weeks of negotiations. This pact is expected to reinforce investor confidence in Indonesian politics amid improved political certainty. Previously, parliament was divided into two rival coalitions: the Awesome Indonesia Coalition (Koalisi Indonesia Hebat), which backs Indonesian President Joko Widodo, and the Red-White Coalition (Koalisi Merah-Putih), which is led by Prabowo Subianto.

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  • 'Working Cabinet' of Joko Widodo; Analysis of Indonesia's New Cabinet

    The new cabinet of Indonesia, which had been announced by Indonesian President Joko Widodo on Sunday (27/10), will be inaugurated this morning at 10:30 am local Jakarta time zone, followed by a plenary cabinet meeting at 14:00 pm. Reactions from people and markets are mixed. Although it is positive that the cabinet includes several professional technocrats (contrary to political party politicians) on key positions such as the Finance Ministry and the Coordinating Ministry for Economics, there is criticism on the ‘reformist nature’ of the cabinet.

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  • New Cabinet of Indonesia (2014-2019): Meet Joko Widodo’s Ministers

    After a week of speculation, Indonesian President Joko Widodo presented the composition of his working cabinet on Sunday afternoon (26/10). The final composition took some time as 8 of Widodo’s ministerial candidates failed to pass the screening of the country’s Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK). Although Widodo was not forced to have his candidates screened by these two institutions, he wanted to make sure that they have clean records in terms of corruption.

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Latest Columns Politics

  • Economy of Indonesia is Facing Several Big Challenges

    Economy of Indonesia is Facing Several Big Challenges

    There are doubts whether Indonesia's gross domestic product (GDP) growth can reach 5.2 percent year-on-year (y/y) in full-year 2018 as Indonesia is experiencing a couple of major challenges. Challenges include the global trade war, the fragile rupiah, Bank Indonesia's higher benchmark interest rate, the current account deficit, and political tensions ahead of the 2019 legislative and presidential elections. Currently, Indonesia Investments' forecast for Indonesia's economic growth is set at 5.2 percent (y/y) in 2018.

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  • CEOs' Optimism about Indonesian Economy & Politics Falls Slightly

    CEOs' Optimism about Indonesian Economy & Politics Falls Slightly

    Chief executive officers (CEOs) in Indonesia have become slightly less optimistic about the Indonesian economy and politics. This makes sense considering the presence of simmering global trade tensions, sharp rupiah depreciation against the US dollar, and Bank Indonesia's recent series of interest rate hikes.

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  • Local Elections Indonesia: Run-Up to the 2019 National Elections

    Local Elections Indonesia: Run-Up to the 2019 National Elections

    The local elections that are held tomorrow (Wednesday 27 June 2018) are regarded a run-up to Indonesia's 2019 legislative and presidential elections. Tomorrow's results are a barometer to measure the political mood in the country with regard to next year's elections. After all, residents in the nation's four most populous provinces - West Java, East Java, Central Java, and North Sumatra - will visit the ballot boxes to vote for new governors. In total, 17 governors, 39 mayors and 115 regents will be elected across Indonesia on Wednesday.

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  • Foreign Workers in Indonesia: a Threat or Tactic to Gain Votes?

    Foreign Workers in Indonesia: a Threat or Tactic to Gain Votes?

    The issue of foreign workers has been the topic of much debate in Indonesian media in recent weeks. Ahead of the 2019 legislative and presidential elections political opponents of Indonesian President Joko Widodo are seemingly using this topic to gain popularity and to incite criticism on the government, or even to incite anxiety in society. Lets take a closer look at what it is about and whether criticism or anxiety is grounded or that we are simply dealing with another hoax.

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  • Presidential Election Indonesia 2019: Another Jokowi-Prabowo Battle?

    Presidential Election Indonesia 2019: Another Jokowi-Prabowo Battle?

    Indonesia's 2019 presidential election is likely to become another battle between incumbent President Joko Widodo (Jokowi) and Gerindra party Chairman Prabowo Subianto. Both men had already been engaged in a fierce contest in 2014, one that was only narrowly won by Jokowi. On Wednesday evening (11/04) Subianto formally accepted the mandate of the Gerindra party to compete as presidential candidate in the 2019 presidential election (scheduled for 17 April 2019).

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  • In Times of Elections Consumer Goods Companies Are Great Stock Picks

    In Times of Elections Consumer Goods Companies Are Great Stock Picks

    Consumer goods companies listed on the Indonesia Stock Exchange are expected to experience two good years in 2018 and 2019 due to the presence of the "political years" (regional elections in 2018 followed by legislative and presidential elections in 2019). Traditionally, consumption rises amid these "parties of democracy" and therefore those consumer goods companies with strong brands are expected to see rising sales in this period.

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  • Looking Back at 2017 & Forward to 2018: Widodo's Performance

    Looking Back at 2017 & Forward to 2018: Widodo's Performance

    It was a solid year for the Indonesian economy. The macroeconomic fundamentals of the nation have strengthened due to the hard work of the Indonesian government under the leadership of President Joko Widodo. However, there is no room for complacency as there remain major bottlenecks, while legislative and presidential elections - in which voters can approve or disapprove Widodo's performance - are scheduled for 2019.

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  • Business & Politics: Eyeing Indonesia's 2019 Presidential Election

    Business & Politics: Eyeing Indonesia's 2019 Presidential Election

    Investors will need to keep an eye on Indonesia's political years of 2018 (regional elections) and 2019 (legislative elections) as the outcomes can have a big impact on the investment climate and business climate of Indonesia. Most eyes will be on the legislative and presidential elections of 2019.

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  • More Inflation Pressures Expected to Occur in Indonesia in 2018

    More Inflation Pressures Expected to Occur in Indonesia in 2018

    Rising commodity prices are good for the Indonesian economy because the country is one of the world's biggest commodity exporters. However, rising commodity prices will also make it more difficult for the government to keep inflation within its target range of 2.5 - 4.5 percent year-on-year (y/y) in 2018.

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