The Week that Was in ASEAN@Smartkarma - Thai Strategy, a Syariah Wonder, and HM Sampoerna

Widodo Scuppers KPK, World Bank Warns About Policy Credibility -- And Ministers Dither

Indonesia Political Risk Analyst

Kevin O’Rourke

CrossASEAN Research

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In a calamitous week for Indonesia, Widodo allowed parties to bring down the Anti-Corruption Commission (KPK), granted early release for corruption convicts and approved criminal penalties for extra-marital sex.  After Papuans suffered racist taunts in Surabaya in August, the police chief is using draconian statutes to pursue their human-rights lawyer -- thereby causing international outcry and prompting yet more unrest in Papua.  And in yet another ominous development, a retired three-star Army general with a special forces background is on the verge of becoming the country's tech czar, with paramount control over regulating data and communications.  A bill might pass that would elevate the obscure and ill-equipped Cyber Security and Encryption Agency (BSSN) into a super-body.  Meanwhile, economic ministers claim that a grand 'omnibus law' will rectify permitting inefficiencies in 72 other laws in one stroke -- but this actually has remote prospects.  On more positive fronts, BI cut rates again, to 5.25%, and the finance minister jacked up cigarette excise taxes and price floors in order to curb smoking.  And parliamentarians raised the minimum marriage age for women from 16 to 19.  Politics: With President Joko Widodo’s approval, parliament passed a revision of the landmark 2002 Law on the Anti‑Corruption Commission (KPK) that triggered criticism, demonstrations and protests.  The revision impinges on the KPK’s performance.  Wiretaps, searches and seizures now require prior approval from an oversight board appointed by the    president, which will curb prospects for investigations of executive‑branch officials.  All KPK personnel must become civil servants within two years, which will entail dismissals, pay cuts, a loss of independence and setbacks for merit‑based incentive structures.  Separately, the administration and parliament hastily passed a newly proposed revision of the Penitentiaries Law that now enables corruption convicts to win early release.  The president’s stance on anti‑corruption efforts apparently aims for the consolidation of control, but in fact it weakens him by undermining his image (Page 2). Policy News: Parliament’s proposed Cyber Security Bill (RUU KKS) could pass next week, posing threats for the tech sector as well as democratic freedoms of expression.  It could elevate the Cyber Security and Encryption Agency (BSSN), headed by a former vice Army chief from the Special Forces (Kopassus), into a super‑body with para­mount control over digital communications.  Rights groups have registered alarm (p. 6). The administration approved the imminent passage of a Criminal Code (KUHP) revision that retains criminal penalties for extra-marital sex, cohabitation between two unmarried people, abortion and commercial promotion of contraceptives.  A member of the National Commission on Human Rights (Komnas Ham) raised objections while other activists protest vague language criminalizing defamation of the president.  Reports also indicate that the draft retains the use of capital punishment.  The new KUHP will pass next week.  The stipulations on sin group Indonesia with a dwindling number of countries, mostly in Southwest Asia, that outlaw adultery (p. 7). Lawmakers revised the 1974 Marriage Law, raising the minimum age for women to marry to 19 (from 16 previously).   Parliament passed a revised Water Law (p. 8)  A Land Bill could pass next week.  It would penalize those obstructing land acquisition for public‑interest development while introducing progressive taxation for developers (p. 9).  .  Ministers are discussing an Omnibus Bill to rectify permitting procedures in over 70 separate laws (p. 10).Justice: Outgoing KPK members named the sports minister as a suspect (p. 13).Economics: The government is raising cigarette excise taxes to curb smoking (p. 15).

In a calamitous week for Indonesia, Widodo allowed parties to bring down the Anti-Corruption Commission (KPK), granted early release for corruption convicts and approved criminal penalties for extra-marital sex.  After Papuans suffered racist taunts in Surabaya in August, the police chief is using draconian statutes to pursue their human-rights lawyer -- thereby causing international outcry and prompting yet more unrest in Papua.  And in yet another ominous development, a retired three-star Army general with a special forces background is on the verge of becoming the country's tech czar, with paramount control over regulating data and communications.  A bill might pass that would elevate the obscure and ill-equipped Cyber Security and Encryption Agency (BSSN) into a super-body.  Meanwhile, economic ministers claim that a grand 'omnibus law' will rectify permitting inefficiencies in 72 other laws in one stroke -- but this actually has remote prospects.  On more positive fronts, BI cut rates again, to 5.25%, and the finance minister jacked up cigarette excise taxes and price floors in order to curb smoking.  And parliamentarians raised the minimum marriage age for women from 16 to 19.   Politics: With President Joko Widodo’s approval, parliament passed a revision of the landmark 2002 Law on the Anti‑Corruption Commission (KPK) that triggered criticism, demonstrations and protests.  The revision impinges on the KPK’s performance.  Wiretaps, searches and seizures now require prior approval from an oversight board appointed by the    president, which will curb prospects for investigations of executive‑branch officials.  All KPK personnel must become civil servants within two years, which will entail dismissals, pay cuts, a loss of independence and setbacks for merit‑based incentive structures.  Separately, the administration and parliament hastily passed a newly proposed revision of the Penitentiaries Law that now enables corruption convicts to win early release.  The president’s stance on anti‑corruption efforts apparently aims for the consolidation of control, but in fact it weakens him by undermining his image (Page 2). Policy News: Parliament’s proposed Cyber Security Bill (RUU KKS) could pass next week, posing threats for the tech sector as well as democratic freedoms of expression.  It could elevate the Cyber Security and Encryption Agency (BSSN), headed by a former vice Army chief from the Special Forces (Kopassus), into a super‑body with para­mount control over digital communications.  Rights groups have registered alarm (p. 6). The administration approved the imminent passage of a Criminal Code (KUHP) revision that retains criminal penalties for extra-marital sex, cohabitation between two unmarried people, abortion and commercial promotion of contraceptives.  A member of the National Commission on Human Rights (Komnas Ham) raised objections while other activists protest vague language criminalizing defamation of the president.  Reports also indicate that the draft retains the use of capital punishment.  The new KUHP will pass next week.  The stipulations on sin group Indonesia with a dwindling number of countries, mostly in Southwest Asia, that outlaw adultery (p. 7). Lawmakers revised the 1974 Marriage Law, raising the minimum age for women to marry to 19 (from 16 previously).   Parliament passed a revised Water Law (p. 8)  A Land Bill could pass next week.  It would penalize those obstructing land acquisition for public‑interest development while introducing progressive taxation for developers (p. 9).  .  Ministers are discussing an Omnibus Bill to rectify permitting procedures in over 70 separate laws (p. 10).Justice: Outgoing KPK members named the sports minister as a suspect (p. 13).Economics: The government is raising cigarette excise taxes to curb smoking (p. 15).

Army's Cyber Security Bill Jeopardizes Tech Sector, Rights / KPK Falls / Adultery Ban / Land Bill