Indonesia Political Risk Analyst

Kevin O’Rourke

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

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Policymakers inched closer to submitting the Omnibus Jobs Creation Bill to parliament, but the president is mulling over certain key issues.  Meanwhile, the administration's handling of the Jiwasraya affair -- in effect, a state-run ponzy scheme -- is rendering Widodo vulnerable to opposition critiques, including from former President Yudhoyono.  And Jakarta Governor Anies Baswedan is suffering damage from his felling of trees in the National Monument (Monas) park.  A long awaited and newly submitted Bill on Data Privacy adheres generally to EU statutes on the topic. Politics: Parliament’s small but increasingly vocal opposition is pestering the Widodo administration for its handling of the Jiwasraya scandal (Page 2).  Law Minister Yasonna Laoly sacked the director general for immigration for having mishandled data regarding a corruption suspect.  Because the minister and the suspect are from the same party, PDI-Perjuangan, opposition parliamentarians demand Laoly’s resignation (p. 3).  After the US ambassador met with the coordinating security minister, Immigration authorities in Central Kalimantan released the US environmental journalist Philip Jacobson from prison, where he has been four days will his alleged visa infraction undergoes investigation.  But he remains under city arrest (p. 4).Regional Elections: The home affairs minister predicts that over 80 percent of the 270 regional-head contests in September will feature incumbents seeking re-election (p. 4).Justice: Investigators from the Anti-Corruption Commission (KPK) pursued additional leads in the 2016 kickbacks case involving road-construction in Maluku – leading to the interrogation of a major party chair, Muhaimin Iskandar of the National Awakening Party (PKB).  And in a separate kickbacks case involving road construction in East Kalimantan last year, investigators questioned the secretary general of the Public Works Ministry (p. 6).  National Mandate Party (Pan) Chair Zulkifli Hasan is due to undergo questioning regarding his decisions as forestry minister in 2014.  Given that a separate case embroils the second-highest figure in PDI-Perjuangan, Party Secretary General Hasto Kristiyanto, the top-two figures of three major parties are now under active scrutiny.  This inevitably fuels suspicions that the KPK’s new leadership is acting on political considerations (p. 7). Policy News: The state enterprise minister confirmed that Jiwasraya has unfunded liabilities of Rp28 trillion and he reiterated asset recovery and the forming of an insurance holding company as methods for narrowing the gap (p. 8).  The Bill on Data Privacy underwent submission to parliament after two years of preparation and anticipation.  The contents reportedly vest authority for overseeing data with the information minister (p. 8).  The Omnibus Tax Bill underwent submission to parliament, but the Omnibus Job Creation Bill has yet to do so; a coordinating minister cited 3 February as the likely date (p. 9).Jakarta: For having deforested part of the National Monument (Monas) park, the governor faces possible legal action from the Environment-and-Forestry Ministry, the provincial assembly (DPRD) or both (p. 11).

Policymakers inched closer to submitting the Omnibus Jobs Creation Bill to parliament, but the president is mulling over certain key issues.  Meanwhile, the administration's handling of the Jiwasraya affair -- in effect, a state-run ponzy scheme -- is rendering Widodo vulnerable to opposition critiques, including from former President Yudhoyono.  And Jakarta Governor Anies Baswedan is suffering damage from his felling of trees in the National Monument (Monas) park.  A long awaited and newly submitted Bill on Data Privacy adheres generally to EU statutes on the topic. Politics: Parliament’s small but increasingly vocal opposition is pestering the Widodo administration for its handling of the Jiwasraya scandal (Page 2).  Law Minister Yasonna Laoly sacked the director general for immigration for having mishandled data regarding a corruption suspect.  Because the minister and the suspect are from the same party, PDI-Perjuangan, opposition parliamentarians demand Laoly’s resignation (p. 3).  After the US ambassador met with the coordinating security minister, Immigration authorities in Central Kalimantan released the US environmental journalist Philip Jacobson from prison, where he has been four days will his alleged visa infraction undergoes investigation.  But he remains under city arrest (p. 4).Regional Elections: The home affairs minister predicts that over 80 percent of the 270 regional-head contests in September will feature incumbents seeking re-election (p. 4).Justice: Investigators from the Anti-Corruption Commission (KPK) pursued additional leads in the 2016 kickbacks case involving road-construction in Maluku – leading to the interrogation of a major party chair, Muhaimin Iskandar of the National Awakening Party (PKB).  And in a separate kickbacks case involving road construction in East Kalimantan last year, investigators questioned the secretary general of the Public Works Ministry (p. 6).  National Mandate Party (Pan) Chair Zulkifli Hasan is due to undergo questioning regarding his decisions as forestry minister in 2014.  Given that a separate case embroils the second-highest figure in PDI-Perjuangan, Party Secretary General Hasto Kristiyanto, the top-two figures of three major parties are now under active scrutiny.  This inevitably fuels suspicions that the KPK’s new leadership is acting on political considerations (p. 7). Policy News: The state enterprise minister confirmed that Jiwasraya has unfunded liabilities of Rp28 trillion and he reiterated asset recovery and the forming of an insurance holding company as methods for narrowing the gap (p. 8).  The Bill on Data Privacy underwent submission to parliament after two years of preparation and anticipation.  The contents reportedly vest authority for overseeing data with the information minister (p. 8).  The Omnibus Tax Bill underwent submission to parliament, but the Omnibus Job Creation Bill has yet to do so; a coordinating minister cited 3 February as the likely date (p. 9).Jakarta: For having deforested part of the National Monument (Monas) park, the governor faces possible legal action from the Environment-and-Forestry Ministry, the provincial assembly (DPRD) or both (p. 11). 

Widodo Suffers Jiwasraya Thorn / KPK Pursuing Top Party Figures / Data Privacy Bill Unveiled