Widodo Unmoved Re KPK / Demos to Continue / Reshuffle 20 Oct / Cyber Security Bill Drifts

Nationwide Student Demos Exert Check / Policies Emulating China / Ethnic Strife in Papua

Indonesia Political Risk Analyst

Kevin O’Rourke

CrossASEAN Research

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A third student died from wounds sustained in demos last month.  More demos are likely on 14 October, as President Widodo remains unmoved regarding his stance to impair the Anti-Corruption Commission (KPK).  Widodo has pledged to revise the Labor Law, but his labor minister denies any such plan -- and Widodo seems inclined to re-appoint the minister in the imminent reshuffle.  As governance deteriorates and investment suffers, tax revenue is falling well short of the full-year target.  Coordinating Security Minister Wiranto received two dagger wounds in the addomen from a suspected terrorist. Politics: Akbar Alamsyah (19) became the third fatality among student protesters after having been in a coma in Jakarta since 25 September.  Student groups intend to demonstrate against President Joko Widodo on 14 October if he does not issue a Decree-in-Lieu-of-Law (Perppu) by that time.  They demand a Perppu to rescind the restrictive revision of the 2002 Law on the Anti‑Corruption Commission (KPK).  The revision passed in mid‑September and will take effect on 17 October.  Widodo’s partiality to self‑interested political elites places him on a collision course with seemingly determined student protesters, and his stance jeopardizes Indonesia’s image for stability and prudential macro‑economic management (Page 2).  Amid speculation about cabinet representation, Gerindra will hold a Working Meeting (Rakernas) to determine its political alignment (p. 3).  PDI‑Perjuangan, the National Democrat (Nasdem) Party and elements of Golkar are affecting confidence in democratization by pushing for self‑serving constitutional amendments of various sorts.  A common goal, and inter‑party trust, may prove elusive.  In the meantime, amendment discussions could cloud the outlook for several years (p. 4). Security: In a small town in Banten, two suspected terrorists attacked Coordinating Security Minister Gen (ret) Wiranto, stabbing him twice in the lower abdomen with a dagger.  He underwent surgery for three hours.  This marks a new modus operandi (p. 8). Justice: Golkar Parliamentary Faction Chair Markus Melchias Mekeng ignored a third summons to appear as a witness before the KPK.  This shows that the KPK’s power is already diminishing (p. 9). Policy News: The president and a Labor Ministry spokesperson affirmed that plans are afoot to revise the long‑problematic 2003 Labor Law – but the minister and another senior official issued denials and energetically downplayed prospects for any change (p. 10). Infrastructure: The collapse of a structure in a toll road project in Depok, outside Jakarta, injured five (p. 13). Economics: Tax receipts will suffer a shortfall of Rp140 trillion this year (p. 13).  Indonesia’s competitiveness rank fell (p. 14).

A third student died from wounds sustained in demos last month.  More demos are likely on 14 October, as President Widodo remains unmoved regarding his stance to impair the Anti-Corruption Commission (KPK).  Widodo has pledged to revise the Labor Law, but his labor minister denies any such plan -- and Widodo seems inclined to re-appoint the minister in the imminent reshuffle.  As governance deteriorates and investment suffers, tax revenue is falling well short of the full-year target.  Coordinating Security Minister Wiranto received two dagger wounds in the addomen from a suspected terrorist. Politics: Akbar Alamsyah (19) became the third fatality among student protesters after having been in a coma in Jakarta since 25 September.  Student groups intend to demonstrate against President Joko Widodo on 14 October if he does not issue a Decree-in-Lieu-of-Law (Perppu) by that time.  They demand a Perppu to rescind the restrictive revision of the 2002 Law on the Anti‑Corruption Commission (KPK).  The revision passed in mid‑September and will take effect on 17 October.  Widodo’s partiality to self‑interested political elites places him on a collision course with seemingly determined student protesters, and his stance jeopardizes Indonesia’s image for stability and prudential macro‑economic management (Page 2).  Amid speculation about cabinet representation, Gerindra will hold a Working Meeting (Rakernas) to determine its political alignment (p. 3).  PDI‑Perjuangan, the National Democrat (Nasdem) Party and elements of Golkar are affecting confidence in democratization by pushing for self‑serving constitutional amendments of various sorts.  A common goal, and inter‑party trust, may prove elusive.  In the meantime, amendment discussions could cloud the outlook for several years (p. 4). Security: In a small town in Banten, two suspected terrorists attacked Coordinating Security Minister Gen (ret) Wiranto, stabbing him twice in the lower abdomen with a dagger.  He underwent surgery for three hours.  This marks a new modus operandi (p. 8). Justice: Golkar Parliamentary Faction Chair Markus Melchias Mekeng ignored a third summons to appear as a witness before the KPK.  This shows that the KPK’s power is already diminishing (p. 9). Policy News: The president and a Labor Ministry spokesperson affirmed that plans are afoot to revise the long‑problematic 2003 Labor Law – but the minister and another senior official issued denials and energetically downplayed prospects for any change (p. 10). Infrastructure: The collapse of a structure in a toll road project in Depok, outside Jakarta, injured five (p. 13). Economics: Tax receipts will suffer a shortfall of Rp140 trillion this year (p. 13).  Indonesia’s competitiveness rank fell (p. 14). 

More Demos Due / Minister Stabbed / Tax Shortfall / Discord Re Labor Law / Amendments Overhang