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Concerns Over COVID-19 Second Wave Surface Anies Struggles In Subscribers copy, not for distribution th Thursday , June 11 , 2020 GENERAL NEWS AND HEADLINES Concerns over COVID-19 second wave surface Kompas, headline; Media Indonesia, headline; Republika, p. 1 President Joko “Jokowi” Widodo, during a visit to the national COVID-19 task force’s office on Wednesday, emphasized that COVID-19 still posed a threat. Three months after the first case was discovered in the country, the spread of the coronavirus is still volatile as positive cases across the archipelago are fluctuating, with some regions reporting increased, decreased or even zero cases. “I remind you, our heavy task is not yet over. The threat of COVID-19 still exists and the conditions are still dynamic. I remind you, there must be no second wave. There must be no surge in cases,” Jokowi asserted during a virtually broadcast speech. In the presence of task force head Doni Monardo and his staff, Jokowi said these uncertain conditions would continue until a vaccine was found. However, that process may take a relatively long time since the vaccine must undergo clinical trials, field trials and mass production before being widely distributed. As of Tuesday, the government reported the highest daily increase of 1,241 new cases in the country, bringing the total number of confirmed cases up to 34,316. Indonesia now has the second-highest number of COVID-19 cases in Southeast Asia after Singapore. Anies struggles in new poll despite tough COVID-19 leadership The Jakarta Post, p. 1 Jakarta-based pollster Indikator Politik Indonesia found that Anies' electability rating was down from 12.1 percent in February to 10.4 percent in May. Anies' slump in the polls took place against the backdrop of the trending upward of Central Java Governor Ganjar Pranowo and West Java Governor Ridwan Kamil as potential candidates for the 2024 presidential race. Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution The electability ratings of Ganjar and Ridwan increased 2.7 percent and 3.9 percent in the May survey. Of the 1,200 people Indikator Politik Indonesia interviewed for the latest opinion poll, 11.8 percent said they would vote for Ganjar if the election were held today, and another 7.7 percent said they would vote for Ridwan. Also struggling is defense minister and chairman of the Gerindra Party Prabowo Subianto, who is also expected to run in the 2024 presidential election. President Joko "Jokowi" Widodo's term will expire in 2024 and he will be barred from seeking reelection. Prabowo's electability rating has dropped more than eight points in the past months. The Gerindra chairman gets the approval of just 14.1 percent of the respondents, a steep drop from 22.2 percent in February. In the February survey, both Anies and Prabowo came out as the two strongest contenders for the 2024 presidential election. New normal’ was not discussed with COVID-19 Task Force Koran Tempo, Main Report The government’s plan to relax large-scale social restrictions (PSBB) and transition into the “new normal” was reportedly not discussed with the national COVID-19 task force or the National Disaster and Mitigation Agency (BNPB). Former BNPB expert staff Corona Rintawan explained that the new normal transition plan was only made known to them after the government introduced the narrative to the public. According to Corona, before introducing the new normal phase to the public, the government had only involved the task force in discussions on making peace with the virus. At that time, he continued, matters that were discussed included economic stagnation, food security and the cessation of the food supply chain. “It [the new normal] was not discussed with the task force. Perhaps it was discussed with Pak Doni [BNPB head],” he said. Corona claimed that he was unaware of why the government would implement such a policy as, according to him, COVID-19 cases in the country are increasing daily. Considering that the spread of the virus is dynamic, Corona explained that although certain areas had become “green zones”, where no new COVID-19 cases Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution had been reported, widespread transmissions can still potentially occur if isolation is not strictly carried out. Green light for pesantren Republika, headline The government has allowed the reopening of pesantren (Islamic boarding schools) located in areas considered as “green zones”. However, school activities must be cautiously carried out in accordance with COVID-19 health protocols. This was discussed in a joint meeting chaired by Vice President Ma’ruf Amin and a number of ministers on Wednesday, as a follow-up to the discourse of reopening Islamic boarding schools amid the transition into the “new normal”. Spokesperson for the Vice President, Masduki Baidlowi, said Ma’ruf had emphasized that the reopening of pesantren must be done based on the principle of prudence, so that it would not trigger a new cluster of COVID-19 infections. Ma’ruf, Masduki said, also allowed pesantren in “red” and “orange” zones to reopen under special conditions. Boarding schools located in these areas must coordinate with the task force handling COVID-19 in their respective regions. House may axe thorny revisions to Press Law The Jakarta Post, p. 3 The House of Representatives Legislation Body (Baleg) is considering dropping proposed revisions to the Press Law from the omnibus bill on job creation. The proposed changes have been criticized by media groups as a threat to press freedom. Some groups questioned the government’s revisions during a hearing with representatives of journalist groups and media companies on Tuesday. They said the revision had nothing to do with the bill’s main objective of job creation. Subagyo of the Golkar Party – the main supporter of the bill – suggested that they be revoked entirely, saying the local media industry needed rules that supported their freedom. "The Press Law should not be revised through the omnibus bill. In order to prevent further misinterpretations, the Golkar faction proposes that the provisions be dropped from the bill,” Subagyo said. Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution BUSINESS AND ECONOMICS NEWS AND HEADLINES Govt prepares Batang to accommodate factories relocated from China Investor Daily, headline Indonesia is preparing an industrial estate in Batang – instead of Brebes – both in Central Java, to accommodate the potential relocation of factories from China. Batang, according to the government, has adequate land and supporting infrastructure, so that the relocation could be realized quickly. State-Owned Enterprises (SOE) Minister Erick Thohir said the government had changed its plans, so that the industrial estate would now be developed in Batang rather than Brebes, because more land would need to be acquired in Brebes. Both Brebes and Batang are located on the northern coast of Central Java. Erick added that companies headquartered in the US and Japan were the potential investors and were ready to relocate in the next six month. Therefore, Indonesia had to play aggressively to take advantage of the opportunity for relocation. The industrial area in Batang is to be developed on 4,000 hectares of land belonging to state-owned PT Perkebunan Nusantara (PTPN) IX. It also has 300 meters of railway network and a Dutch heritage port that are ready to be redeveloped for an industrial area. “All would be converted into an industrial area to anticipate the speedy relocation of the US and Japanese companies.” According to Erick, Investment Coordinating Board (BKPM) chairman Bahlil Lahadalia had inspected the location to ensure the readiness of the area to be developed into an industrial estate. Bahlil made the visit in early June and met with Batang Regent Wihaji to get his support for the development of the industrial estate. Bahlil also visited the 2,000-megawatt Batang power plant, which is currently under development. Indonesian Chamber of Commerce and Industry (Kadin) vice chairwoman Shinta Kamdani explained that the planned relocation of the US companies from China was driven by the US-China trade war. She added that Kadin was mapping the potential companies that really wanted to invest in Indonesia. She noted that Indonesia was competing with Bangladesh, Vietnam and India. To win the competition, she suggested that the government ease investment regulations. Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution Bank risk still high in the ‘new normal’ Bisnis Indonesia, headlines The risk of worsening credit quality at banks still looms even as the economy braces itself for reopening, and debt restructuring could increase the nonperforming loan (NPL) ratio. PT Bank Central Asia (BCA) president director Jahja Setiaatmadja explained that NPLs could be hidden in accounting because of debt restructuring, but BCA would take a conservative approach despite the Financial Services Authority’s (OJK) recent relaxation of debt restructuring rules. BCA, Jahja said, would continue implementing the usual reserve measures. BCA has so far restructured Rp 609.07 trillion in loans belonging to 5.94 million debtors. Meanwhile, PT Bank Rakyat Indonesia (BRI) finance director Haru Koesmahargyo said the state-owned bank would implement additional reserve provisions as a preventive measure against credit quality changes. Meanwhile, PT Bank Ina Perdana president director Daniel Budirahayu said his company would increase the bank’s loan loss provision (CKPN) to anticipate the risk of an NPL ratio increase in 2021. Deposit Insurance Corporation (LPS) chairman Halim Alamsyah stated that public bank savings had slowed down during the pandemic, but there was still a high degree of trust in the banking system. However, he added that liquidity risk was unavoidable with the slowdown in new loan extensions and the pressure of debt restructuring.
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