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

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

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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President Joko Widodo remained unmoved with regard to rescinding an unpopular revision of the 2002 Law on the Anti-Corruption Commission (KPK).  The revision clouds Indonesia's outlook by promising to exacerbate corruption.  A second student protester died and a student leader pledged that demonstrations will continue.  A survey suggests that the demonstrators have overwhelming support. The legislature's new leadership shows that mafia-style business interests are making yet more inroads into national politics. Politics: A second student protesting the revision of the Law on the Anti-Corruption Commission (KPK) died.  A student leader from Jakarta pledged to sustain protests until President Joko Widodo rescinds the revision via a Decree-in-Lieu-of-Law (Perppu) (Page 2).  But Widodo reputedly refuses to do so, despite having cited it as a possibility a week ago.  In fact, no compelling legal, constitutional or political rationale prevents the use of a Perppu.  Widodo apparently regards himself as beholden to the party bosses whom the KPK threatens.  Student demonstrations diminished somewhat on 2‑3 October, but they may resume in force as Widodo’s inflexibility becomes clearer (p. 3).  As expected, parliament’s new speaker is PDI‑Perjuangan’s Puan Maharani, while vice speakers include National Awakening Party (PKB) Chair Muhaimin Iskandar and the Golkar veteran Azis Syamsuddin.  The latter recently led the maneuver to revise the KPK Law.  Surabaya’s La Nyalla Mattalitti heads the Regional Representatives Assembly (DPD) while Golkar’s Bambang Soesatyo is People’s Consultative Assembly (MPR) speaker.  Overall, the legislative appointments reflect the influence of conventional business interests (p. 5). <table class="table table-striped"><tbody><tr><td>Produced since 2003, the Reformasi Weekly Review provides timely, relevant and independent analysis on Indonesian political and policy news.  The writer is Kevin O’Rourke, author of the book Reformasi.  For subscription info please contact: &lt;kevin.orourke@reformasi.info&gt;.</td></tr></tbody></table>Surveys: A poll by KedaiKopi shows that large majorities reject revisions of both the KPK Law and the Criminal Code (KUHP); they also oppose the draconian Cyber Security Bill (RUU KKS).  Widodo’s approval rating was below 50 percent while university‑student demonstrations garnered support from 87 percent (p. 8). Papua: More than 6,000 residents of Wamena have evacuated and another 7,000 remain in camps for safety following the ethnic strife that killed 33 last week (p. 9). Policy News: Parliamentarians proved unable to pass the RUU KKS on 30 September.  They differ on whether deliberations can resume in the new assembly (p. 10).  Responsi­bility for investment in the next cabinet will reportedly fall under the coordinating mari­time minister.  While foreign trade will move under the Foreign Ministry, domestic trade will remain under the Trade Ministry (rather than merge into the Industry Ministry) (p. 11). Infrastructure: More delays affect the China‑financed Jakarta‑Bandung Fast Train (KCIC); the targeted start of commercial operations is now the second half of 2021 (p. 11). Disasters: The quake that hit Ambon and Seram in Maluku last week killed 38 (p. 11). Appointments: The vice president hinted that the reshuffle will occur with the re‑inauguration (p. 12).

President Joko Widodo remained unmoved with regard to rescinding an unpopular revision of the 2002 Law on the Anti-Corruption Commission (KPK).  The revision clouds Indonesia's outlook by promising to exacerbate corruption.  A second student protester died and a student leader pledged that demonstrations will continue.  A survey suggests that the demonstrators have overwhelming support. The legislature's new leadership shows that mafia-style business interests are making yet more inroads into national politics. Politics: A second student protesting the revision of the Law on the Anti-Corruption Commission (KPK) died.  A student leader from Jakarta pledged to sustain protests until President Joko Widodo rescinds the revision via a Decree-in-Lieu-of-Law (Perppu) (Page 2).  But Widodo reputedly refuses to do so, despite having cited it as a possibility a week ago.  In fact, no compelling legal, constitutional or political rationale prevents the use of a Perppu.  Widodo apparently regards himself as beholden to the party bosses whom the KPK threatens.  Student demonstrations diminished somewhat on 2‑3 October, but they may resume in force as Widodo’s inflexibility becomes clearer (p. 3).  As expected, parliament’s new speaker is PDI‑Perjuangan’s Puan Maharani, while vice speakers include National Awakening Party (PKB) Chair Muhaimin Iskandar and the Golkar veteran Azis Syamsuddin.  The latter recently led the maneuver to revise the KPK Law.  Surabaya’s La Nyalla Mattalitti heads the Regional Representatives Assembly (DPD) while Golkar’s Bambang Soesatyo is People’s Consultative Assembly (MPR) speaker.  Overall, the legislative appointments reflect the influence of conventional business interests (p. 5). Produced since 2003, the Reformasi Weekly Review provides timely, relevant and independent analysis on Indonesian political and policy news.  The writer is Kevin O’Rourke, author of the book Reformasi.  For subscription info please contact: &lt;kevin.orourke@reformasi.info&gt;.Surveys: A poll by KedaiKopi shows that large majorities reject revisions of both the KPK Law and the Criminal Code (KUHP); they also oppose the draconian Cyber Security Bill (RUU KKS).  Widodo’s approval rating was below 50 percent while university‑student demonstrations garnered support from 87 percent (p. 8). Papua: More than 6,000 residents of Wamena have evacuated and another 7,000 remain in camps for safety following the ethnic strife that killed 33 last week (p. 9). Policy News: Parliamentarians proved unable to pass the RUU KKS on 30 September.  They differ on whether deliberations can resume in the new assembly (p. 10).  Responsi­bility for investment in the next cabinet will reportedly fall under the coordinating mari­time minister.  While foreign trade will move under the Foreign Ministry, domestic trade will remain under the Trade Ministry (rather than merge into the Industry Ministry) (p. 11). Infrastructure: More delays affect the China‑financed Jakarta‑Bandung Fast Train (KCIC); the targeted start of commercial operations is now the second half of 2021 (p. 11). Disasters: The quake that hit Ambon and Seram in Maluku last week killed 38 (p. 11). Appointments: The vice president hinted that the reshuffle will occur with the re‑inauguration (p. 12).  

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