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Nasdem, Golkar Chairmen Discuss Cooperation Religiosity Stipulation Removed from KPK's New Code of Ethics

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Subscribers copy, not for distribution Monday, Mar. 9th, 2020 GENERAL NEWS AND HEADLINES NasDem, Golkar chairmen discuss cooperation CNN Indonesia, (https://tinyurl.com/ql37ja8); Detik, (https://tinyurl.com/wllyruq) NasDem Party chairman Surya Paloh and Golkar Party chairman Airlangga Hartarto met Monday at the latter’s office in Jakarta. Golkar deputy chairwoman Meutya Hafid, who also serves as House of Representatives Commission I chairwoman, said the meeting was to discuss the country’s current economic transformation as well as possible cooperation between the two parties ahead of the 2020 regional elections this September. Previously, Airlangga had also met with Prosperous Justice Party (PKS) chairman Sohibul Iman and Democratic Party chairman Susilo Bambang Yudhoyono to discuss the upcoming regional elections as well as the government’s ongoing deliberation on the omnibus bills on job creation and taxation. Religiosity stipulation removed from KPK’s new code of ethics TribunNews, (https://tinyurl.com/v467hp4); Antara (https://tinyurl.com/u4qrtph) The Corruption Eradication Commission (KPK) supervisory council has completed its revision of the antigraft body’s code of ethics, in which the importance of several values such as integrity, justice, professionalism, leadership and synergy is stipulated. The latest revision saw the removal of religiosity from the social values stipulated in the new code of ethics. The removal was due to the inherence of religious values in other stipulated social values, as explained by KPK supervisory council chairman Tumpak Hatorangan Panggabean. The removal of religious values from the KPK’s code of ethics, however, has been criticized by Indonesian Ulema Council (MUI) secretary-general Anwas Abbas. “We [the MUI] lamented such removal. It appears that the KPK’s supervisory council has ignored [the state ideology] Pancasila and the Article 29 clause 1 of the 1945 Constitution,” said Anwar. Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution Students, workers return to street to reject omnibus bills CNN Indonesia, (https://tinyurl.com/waewmuz) Several groups of students and laborers in Yogyakarta took to the streets on Monday to reject the ratification of the omnibus bill on job creation. The demonstrators mobilized using various hashtags on social media platforms, such as #GejayanMemanggil (Gejayan calls, which references a major street used for protests in Yogyakarta) and #GagalkanOmnibusLaw (Abort the omnibus law). The protest was reportedly attended by students from several universities in Yogyakarta, including Gadjah Mada University (UGM), Yogyakarta State University (UNY) and Yogyakarta Muhammadiyah University (UMY). The Indonesian Prosperous Labor Union (SBSI) would also take part in the protest later on Monday, as affirmed by SBSI Yogyakarta coordinator Dani Eko Wiyono. BUSINESS AND ECONOMICS NEWS AND HEADLINES Consumer confidence reaches three years low CNBC Indonesia, (https://tinyurl.com/racv932); Bisnis Indonesia, (https://tinyurl.com/qogjltn) Bank Indonesia recorded a drop in February’s consumer confidence index from 121.7 at the previous month to 117.7. BI Spokesman Onny Widjanarko said that, “Indonesian consumers are still optimistic about the current economic condition, particularly with their income and purchasing power on durable goods. But their optimism is not as strong as the previous month.” The largest drop in consumer confidence occurred on the expenditure level of Rp 2.1 to 3 million (US$145 to $207) per month, as well as the age range of 51 to 60 years old. JCI sets for bear run CNBC Indonesia, (https://tinyurl.com/vbj6jw8); The Jakarta Post, (https://tinyurl.com/tfzv3hd) Indonesian stocks are among those heading for bear territory as another devastating day for equities unfolded. The Jakarta Composite Index (JCI) dropped as much as 4.22 percent to 5,266.28 at the end of Monday’s morning session. The Indonesian stock market is Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution following sister Malaysia and Thailand peers that entered a bear market in the last week of February, while Japanese shares are poised for a bear run on Monday. Even though Indonesia has reported a few coronavirus cases, fears over the economic impact of the outbreak is growing as the virus epidemic infects more countries on a global scale, causing widespread fear and panic. The State-Owned Enterprises (SOEs) Ministry is currently considering a buy back on SOE stock in an effort to support the deeply corrected JCI. Finance Ministry, SKK Migas concerned and worried by sudden fall in global oil prices CNBC Indonesia, (https://tinyurl.com/ty3m93r, https://tinyurl.com/wny7lvb); Bisnis Indonesia, (https://tinyurl.com/trxtsgt) Finance Minister Sri Mulyani Indrawati is slightly concerned with the current development in the global oil market, following a price war between Saudi Arabia and Russia triggered by a disagreement over production cuts in the OPEC+ group meeting. Although lower oil prices could help shore up the Indonesian economy hit by the coronavirus (COVID-19) outbreak, it would negatively affect the country’s oil production and government’s revenue from oil and gas. Energy Watch executive director Mamit Setiawan said that the government needs oil prices to be within the range of US$32 to $35 per barrel in order to achieve its targeted Rp 127 trillion ($8.77 billion) non-tax revenue from oil and gas. Meeting the government’s oil and gas lifting target of 750,000 barrels per day will also be arduous, Mamit added. Upstream Oil and Gas Regulatory Task Force (SKK Migas) head Dwi Soetjipto said that SKK Migas will respond with various policy measures to counter the negative effect on the country’s oil production. The policy responses include lowering cost through efficiency, recalculating the economic value of some investment projects and providing more incentives to shore up investment in the oil and gas sector. Investors urge SoftBank to deliver Grab-Gojek tie-up in Indonesia Warta Ekonomi, (https://tinyurl.com/wvkmz3w) Investors are lobbying SoftBank to build an alliance between Southeast Asia’s ride-hailing giants Grab and Gojek, which are bleeding cash in a neck-to-neck battle for market share, according to a in-depth report from The Financial Times. The talks centre on a tie-up in the world’s fourth-most populous country and in the most lucrative and largest market, Indonesia. The country is the most lucrative market for Jakarta-based Gojek, whose Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] Subscribers copy, not for distribution backers include Tencent and Google, and Singapore-based Grab, which counts SoftBank and Microsoft as investors. Both have intensified efforts to win customers in the past 18 months to drive business growth. Disclaimer: Tenggara Strategics always aims to use reliable sources in providing our best analysis to our clients, and is not responsible for any errors, inaccuracies and/or viewpoints in the original source material upon which we have based our analysis. The analysis contained in this document is intended exclusively for our clients who have subscribed to this service, and is not for public consumption or dissemination. Nothing contained herein shall to any extent substitute for the independent investigations and the sound technical and business judgment of the reader. In no event will Tenggara Strategics, including its employees, be liable for any decisions made or actions taken in reference to the information contained in these documents, or for any incidental, consequential, indirect, special or exemplary damages, including damages from loss of profits or opportunities, even if advised of the possibility of such damages. Copyright © 2020. Tenggara Strategics To Subscribe: [email protected] .
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