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GENERAL NEWS AND HEADLINES

The coalition of presidential and vice presidential candidates and is Prabowo-Sandiaga forming a streamlined campaign team focusing on camp to unveil ‘slim’ economic issues as part of its strategy to win the presidency next year. Prosperous Justice Party (PKS), a campaign team member party of the coalition, executive Mardani Ali Sera (The Post, p.4) said that the team should remain slim, a stark contrast with President Joko “Jokowi” Widodo’s campaign team. Mardani claimed that Prabowo-Sandiaga’s team had three tasks, namely involving Muslim clerics throughout the process, visiting all major regions in , and creating a solid media team.

Although the final structure and composition of Prabowo- Sandiaga’s team have yet to be disclosed, several names are being touted to lead the campaign team, including Democratic Party chairman , his son, Agus Harimurti Yudhoyono, and the (PAN) chairman .

The campaign team of Presidential and vice presidential candidate Joko “Jokowi” Widodo and Ma’ruf Amin’s Parties fighting to campaign team formation has yet to be finished. The head campaign team (PPP) secretary-general Arsul Sani claimed that each coalition’s parties nominated their

respective chairman to head the team. This is due to the parties’ wish to experience the coattail effect from Jokowi and Ma’ruf, particularly as the legislative election is also

approaching. However, as stated by Arsul, presidential and (Koran Tempo, p.6) vice presidential candidates have exclusive jurisdiction to choose the head of their campaign team.

The General Elections Commission (KPU) chief Arief Budiman announced that all presidential and vice All candidates passed presidential candidates met the health requirements for health checks the presidential election. On Aug. 14 evening, a team of doctors who conducted the health checks submitted the

results to KPU, which confirms the candidates’ good physical and mental health.

(Republika, p.1) Undergoing medical checkup is only one of 18 procedures that candidates have to take. After passing the health

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checks, candidates’ administrative documents now will be reviewed by KPU.

Ma’aruf Amin to meet Vice presidential candidate Ma’ruf Amin will go on haj pilgrimage this year, during which he will reportedly meet Rizieq Shihab the leader of the Islam Defenders Front (FPI) Rizieq Shihab. As confirmed by the (PKB) chairman , Ma’ruf’s meeting (Media Indonesia, p.3) with Rizieq aims to strengthen silaturahim (the bonds of friendship), but further details have yet to be revealed.

Previously, Ma’ruf declared his intention to embrace the 212 Alumni presidium, a union of Islamic hardline groups which formed after 2016 mass protest against former Jakarta governor Basuki “Ahok” Tjahaja Purnama, in order to unify Islamic groups in supporting President Jokowi’s bid for reelection.

PAN politican quits The upcoming 2019 presidential election has already affected the political landscape within President Joko Cabinet “Jokowi” Widodo ’s Cabinet as a member left his ministerial post following his party’s decision to support Jokowi’s opposition in the election. Administrative and (Kompas, Media Bureaucratic Reform Minister Asman Abnur, a National Indonesia, Headline) Mandate Party (PAN) politician, will resign from his position, citing the dilemma caused by PAN’s decision to support Jokowi’s contender Prabowo Subianto as the cause. Asman, the only PAN representative in the Cabinet, has revealed his plan to resign to State Secretary Pratikno although he has yet to officially send a resignation letter to Jokowi. Asman will be reportedly replaced by the National Police deputy Comr. Gen. Syafruddin.

Not only that, Jokowi’s Cabinet’s structure is also affected by the upcoming legislative election. Six ministers are reportedly running for legislative seats. Although these six ministers do not have the obligation to resign, they will spend some time to campaign for the legislative election, diverting their concentration from their ministerial work.

As Jakarta deputy governor Sandiaga Uno leaves his post in City Hall, he plans to implement Jakarta’s City-funded OK OCE entrepreneurship program at the national level should he goes beyond Jakarta win the 2019 election. The One District One Center of Entrepreneurship (OK OCE), in which members are

offered training and business loans, was implemented in Jakarta earlier this year and reportedly attracted more than 40,000 people. OK OCE Movement Community (The Jakarta Post, p.5) (PGO), an independent implementing group, said that despite it being a Jakarta administration program funded by the city budget, it has been introduced in other

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provinces, whose interest in the program are reportedly increasing.

It remains unclear how the group has financed its activities beyond the city, but according to apbd.jakarta.go.id, the city allocated Rp 38.3 billion (US$2.66 million) to hold entrepreneurial training sessions and assistance in five municipalities and one regency.

BUSINESS AND ECONOMICS NEWS AND HEADLINES

Government’s plan to tighten import regulation should Controlling import and be done carefully to ensure that their local substitutes pursuit of higher are available and accessible for manufacturers and industry. Import management has become economic growth government’s focus to prevent widening current account deficit in its pursuit for above 5 percent economic growth. According to President Joko “Jokowi” Widodo’s statement during a Cabinet meeting on Tuesday, the government is very likely aiming on foreign (Bisnis Indonesia, exchange reserve improvement from the import Headline) management. Institute for Development for Economics and Finance (Indef) vice director Eko Listyanto said the plan was logical but must be carefully assessed since there is a potential for slowing economic growth. Meanwhile, Finance Minister Sri Mulyani Indrawati began implementing 7.5 percent income tax (PPh) from import goods to limit imported goods demand specifically only to strategic capital goods. Additionally, the Industry Minister also announced a plan to halt 500 import items temporarily.

Bank Indonesia (BI) Board of Directors Meeting on Tough choices for BI Wednesday would set a crucial point that would influence the movement of the Indonesian financial market in the future. Since Monday, the Jakarta

Composite Index (JCI) has slumped 5 percent in response to Turkish economic crisis. There are currently (Kontan, Headline) two possible scenarios that the BI could apply to cushion the growing global economic crisis. The central bank could maintain the benchmark rate at 5.2 percent or raise the rate to shield the JCI from worsening rupiah depreciation. Analysts argued that increasing benchmark rate would become an antidote to the deteriorating market since it would attract capital inflow in short term. However, the decision could push investment to banking instrument and potentially harm

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the economic growth. On the other hand, maintaining the benchmark rate would secure more economic growth potential but concurrently allows the market to be purely driven by the market as it expects credit increase against the global economic turmoil.

The Financial Services Authority (OJK) would officially launch a new ATMR regulation to stimulate property Easing property credit sector growth on Wednesday. The new ATMR (Aktiva requirements Tertimbang Menurut Resiko) regulation would loosen land credit requirements for developers. OJK deputy

commissioner for banking supervision II Boedi Armanto (Kontan, p.1) said the credit requirement relaxation targets developers who work on property with non-subsidized housing credit (KPR). The decision came to support ’s loan to value (LTV) and financing to value policies by adjusting ATMR to the LTV rate. Separately, Bank Tabungan Negara welcomed the new regulation as lower ATMR would become an incentive for banks to disburse house ownership credit.

Looking from several macro indicators, the Indonesian Indonesia’s Economy economy is superior than of Turkey’s. Bank Indonesia’s is far better than (BI) benchmark rate was still under control at 5.25 percent while Turkish central bank’s rate was at 17.75 Turkey: Sri Mulyani percent. Moreover, Turkish foreign debt to gross domestic product (GDP) ratio is far higher at 17.75 percent in comparison to Indonesian debt-to-GDP ratio that is maintained at around 3 percent. In the same time, the Jakarta Composite Index (JCI) withstood (Investor Daily, foreign external pressure better than the Turkish Headline) composite index, BIST, which slumped by almost 19 percent year-to-date.

Finance Minister Sri Mulyani Indrawati, Bank Indonesia Governor Perry Warjiyo and Centre of Reform on Economics director Mohammad Faisal were confident that the Indonesian economy is far more resilient and lucrative since the ratio between growth potential and inflation are at a more manageable rate. The Central Statistics Agency (BPS) recorded second quarter growth at 5.27 percent and inflation rate at 3.2 percent. Turkish economy, meanwhile, booked 7.4 percent growth but with 16 percent inflation rate.

Japan adds more Japan International Cooperation Agency (JICA) pledged development fund additional Rp 1.2 trillion for Patimban Port Development Project on Tuesday. The fund, which is being lent to the Public Works and Housing Ministry via Bina Marga Road (Investor Daily, p.1) Agency, will fund 8.2 kilometers elevated access road development heading to Patimban Port from nearby

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industrial complexes and is expected to complete by the end of 2019. In the same time, the Japanese government and the Indonesian government have also signed Rp 63.51 billion supervisory and consultancy agreement with Japanese and Indonesian consultants for the road development. The partnership gathers several construction consultants such as Katahira & Engineer International, Nippon Engineering Consultant, PT Perentjana Djaja, PT Sarana Multi Daya, PT Parama Karya Mandiri, PT Mekaro daya Mandiri and PT Maratama Cipta Mandiri to oversee the project.

Undisbursed loan piles Undisbursed loan is reported to increase in the last up three years, where per May 2018, the amount growth 8.6 percent year-on-year to Rp 1,460 trillion with BUKU IV category banks as the biggest contributor as 38.3 (Bisnis Indonesia, p.3) percent from the total amount came from these big cap banks. The Financial Services Authority (OJK) noted that the growth has steadily increased since 2015 to 2017 at 6.7 percent, 6.5 percent and 7.4 percent, respectively. Nevertheless, the condition is expected to improve, where Bank Negara Indonesia (BNI), one of the biggest debtors, vice director Herry Sidharta said BNI’s undisbursed loan began to decline to 3.1 percent or Rp 47.2 trillion by the end of the first quarter. Herry pointed out that the situation would advance as economic cycle is more active in the second semester, “more industrial activities in second semester of 2018 would enhance the ongoing situation,” he added.

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