Indonesian Politics This Week: BI Slows Bill to Limit Cash; 3rd CGK Runway?; Police Soften on FPI

Indonesia Political Risk Analyst

Kevin O’Rourke

Reformasi

Thematic (Sector/Industry)

Politics: President Joko Widodo received an endorsement from Zainul Majdi, known also as Tuan Guru Bajang (TGB), who visited the palace and thereby revived speculation about his prospects for a vice‑presidential nomination.  In fact, multiple potential running mates are under consideration and Widodo is keeping his options open, which in turn keeps opponents off guard (Page 2).  Justice Welfare Party (PKS) President Sohibul Iman suggested that Jakarta Governor Anies Baswedan should be the Islamic party’s presidential nominee.  This reveals PKS tensions with Gerindra – heretofore firm opposition allies.  Iman’s suggestion may actually be a ploy to goad Gerindra’s Prabowo Subianto into finally committing to a run with PKS.  But if PKS were to abandon Gerindra, new ticket permutations would be possible.  Ultimately, alternatives capable of rivaling Widodo are lacking, but some would want to run to prepare for a 2024 bid.  Baswedan, however, may wish to keep his governorship (p. 2).  By denouncing the General Election Commission (KPU) for prohibiting candidacies by former corruption convicts, Gerindra is squandering a prime opportunity to distinguish itself from the discredited establishment (p. 5). <table class="table table-striped"><tbody><tr><td>
Reformasi Weekly Review provides timely, relevant and independent analysis on Indonesian political and policy news. 
Delivered electronically every Friday, Reformasi Weekly is written by Kevin O’Rourke, author of the book Reformasi.
For subscription information please contact &lt;kevin.orourke@reformasi.info&gt;.
Reformasi Weekly is a product of PT Reformasi Info Sastra.
</td></tr></tbody></table>Justice: Suspecting systematic graft in the allocation of provincial budget funds, the Anti‑Corruption Commission (KPK) arrested Irwandi Yusuf, the Aceh governor once well‑regarded for reform.  The arrest thrusts a former Partai Demokrat parliamentarian, Vice Governor Nova Iriansyah, into the challenging role of acting governor through 2022 (p. 7).  Golkar’s Ahmad Hidayat Mus entered custody as a KPK suspect within days of his election as North Maluku governor (p. 8).Regional Head Elections: Despite hacking the vote-count is nearly done (p. 8).Economics: The finance minister pledged to pursue corrective measures if investors regard the current account deficit as a cause for concern – but officials have yet to propose specific reforms to bolster confidence (p. 8).  Ministers expressed optimism that second‑quarter GDP growth will reach 5.2 percent year‑on‑year (p. 9). Jakarta: Traffic restrictions based on odd‑or‑even license‑plate numbers have expanded, ostensibly for only two months (p. 9).  Baswedan installed new mayors (p. 11).Outlook: VP options reputedly under consideration by Widodo would all entail drawbacks.  But barring a blunder, the choice is unlikely to materially affect Widodo’s re‑election.  Meanwhile, the uncertainty keeps rivals from kick starting campaigns (p. 12).

Politics: President Joko Widodo received an endorsement from Zainul Majdi, known also as Tuan Guru Bajang (TGB), who visited the palace and thereby revived speculation about his prospects for a vice‑presidential nomination.  In fact, multiple potential running mates are under consideration and Widodo is keeping his options open, which in turn keeps opponents off guard (Page 2).  Justice Welfare Party (PKS) President Sohibul Iman suggested that Jakarta Governor Anies Baswedan should be the Islamic party’s presidential nominee.  This reveals PKS tensions with Gerindra – heretofore firm opposition allies.  Iman’s suggestion may actually be a ploy to goad Gerindra’s Prabowo Subianto into finally committing to a run with PKS.  But if PKS were to abandon Gerindra, new ticket permutations would be possible.  Ultimately, alternatives capable of rivaling Widodo are lacking, but some would want to run to prepare for a 2024 bid.  Baswedan, however, may wish to keep his governorship (p. 2).  By denouncing the General Election Commission (KPU) for prohibiting candidacies by former corruption convicts, Gerindra is squandering a prime opportunity to distinguish itself from the discredited establishment (p. 5). 
Reformasi Weekly Review provides timely, relevant and independent analysis on Indonesian political and policy news. 
Delivered electronically every Friday, Reformasi Weekly is written by Kevin O’Rourke, author of the book Reformasi.
For subscription information please contact &lt;kevin.orourke@reformasi.info&gt;.
Reformasi Weekly is a product of PT Reformasi Info Sastra.
Justice: Suspecting systematic graft in the allocation of provincial budget funds, the Anti‑Corruption Commission (KPK) arrested Irwandi Yusuf, the Aceh governor once well‑regarded for reform.  The arrest thrusts a former Partai Demokrat parliamentarian, Vice Governor Nova Iriansyah, into the challenging role of acting governor through 2022 (p. 7).  Golkar’s Ahmad Hidayat Mus entered custody as a KPK suspect within days of his election as North Maluku governor (p. 8).Regional Head Elections: Despite hacking the vote-count is nearly done (p. 8).Economics: The finance minister pledged to pursue corrective measures if investors regard the current account deficit as a cause for concern – but officials have yet to propose specific reforms to bolster confidence (p. 8).  Ministers expressed optimism that second‑quarter GDP growth will reach 5.2 percent year‑on‑year (p. 9). Jakarta: Traffic restrictions based on odd‑or‑even license‑plate numbers have expanded, ostensibly for only two months (p. 9).  Baswedan installed new mayors (p. 11).Outlook: VP options reputedly under consideration by Widodo would all entail drawbacks.  But barring a blunder, the choice is unlikely to materially affect Widodo’s re‑election.  Meanwhile, the uncertainty keeps rivals from kick starting campaigns (p. 12). 

Indonesian Politics This Week: VP, Ticket Options Still Fluid; PKS Eyes Anies; New Jkt Traffic Rules