GENERAL NEWS AND HEADLINES

Fugitives exploit lax immigration system
The Jakarta Post, headline 

Immigration authorities have once again found themselves under scrutiny after failing to detect the arrival of high-profile graft convict and fugitive Djoko Soegiarto Tjandra, who is believed to have returned to Indonesia after spending about 10 years overseas.

Djoko was involved in the Bank Bali scandal, which saw hundreds of billions of rupiah embezzled from state bailout funds for the 1998 Asian financial crisis. He was acquitted in 2000 but later convicted in 2009 after the Attorney General’s Office (AGO) filed a request for review.

Djoko fled the country to Papua New Guinea on June 10, 2009, a day before the Supreme Court issued its ruling. Indonesian authorities learned that Djoko had reentered the country only after the AGO discovered he had filed an appeal in early June for a review of his case. His lawyer Andi Putra Kusuma later confirmed that Djoko had been present at the South Jakarta District Court on June 8 to file the documents.

Djoko's whereabouts since have remained unclear. He has skipped his court hearings, and critics have wondered aloud why authorities have failed to find him.

“I’m just worried that the weak immigration monitoring system will motivate other graft criminals to escape the country,” said Zaenur Rohman, a researcher at the Gadjah Mada University Center for Anticorruption Studies (Pukat UGM).

“Not only was Djoko able to flee undetected [in 2009], he also managed to return to the country without being noticed by immigration. That should be a wake-up call for immigration [authorities] to realize that their monitoring system is weak,” he said.

 

Health Ministry pegs COVID-19 rapid tests at Rp 150,000
Media Indonesia, headline 

The Health Ministry has finally determined the highest price for COVID-19 rapid tests. According to Circular No. HK.02.02/I/2875/2020, issued on July 6, COVID-19 rapid tests are to be priced at Rp 150,000 at the most. The circular, which was signed by the ministry’s health services director general, Bambang Wibowo, is aimed to regulate fees for individuals who choose to take the tests on their own.

This decision was made after President Joko “Jokowi” Widodo ordered the standardization of COVID-19 testing fees. The costs of rapid tests have previously varied, with many complaining that some tests are too expensive, bringing to light the issue of commercialization.

Indonesian Ombudsman member Alvin Lie assessed that the issuance of the circular proved that rapid tests had indeed become a trade commodity. Instead of only determining the highest price for rapid tests, Alvin also urged the Health Ministry to set a standard cost for polymerase chain reaction (PCR) tests, the prices of which have been reportedly hiked to reach between Rp 1 million and Rp 3 million.

 

PDI-P claims sexual violence bill will be resubmitted next year
Koran Tempo 

As the House of Representatives’ Legislation Body (Baleg) officially dropped the sexual violence bill from this year’s National Legislation Program (Prolegnas) priority list, along with 15 other bills on the list, the Indonesian Democratic Party of Struggle (PDI-P) and the Democratic Party have reassured that they will actively lobby for the bill to be included in the 2021 Prolegnas.

House Commission VIII member Diah Pitaloka, who is from the PDI-P, said the sexual violence bill was excluded from the 2020 Prolegnas priority list because other parties still questioned several articles in the bill. Moreover, there are only three months left for the 2020 Prolegnas to be completed and not enough time for the bill’s deliberation.

What the PDI-P could do now, Diah explained, was to improve the bill and the academic texts that support it. Diah admitted that the proposed draft bill still sparked debate, with some parties having difficulty understanding the articles of the bill. “In previous discussions, many have claimed that [the bill] is too abstract and needs to be reviewed again,” Diah said.

In response, Diah said supporting parties would continue to improve articles pertaining to prevention, case investigations and criminal offenses that perpetrators were subject to. “Article by article will be thoroughly discussed,” Diah claimed.

Govt postpones civil servant recruitment for 2020
Kompas, p. 2; Republika, p. 1 

Administrative and Bureaucratic Reform Minister Tjahjo Kumolo has said the government will not be opening recruitment for regular civil servant candidates in 2020 and 2021. This is because the government is still in the process of completing the recruitment of candidates from 2019, which had been previously delayed due to the COVID-19 pandemic. The government has ensured that this will not disrupt the performance of the bureaucracy.

Acceptance began in November 2019, with a total of 152,286 candidates spread across 68 ministries and institutions as well as 462 local administrations. The process should have been completed by mid-2020. As a result, the National Civil Service Agency postponed the 2019 field competency selection test to August - October.

Papuan groups oppose special autonomy status
The Jakarta Post, p. 2 

Sixteen groups in Papua have voiced opposition over the potential continuation of its special autonomy (Otsus) status, with the transfer of Otsus funds from the central government set to end next year.

Protesting under a movement called Petisi Rakyat Papua (Petition by Papuans), the groups also demanded a referendum to determine their own fate.

The administration of former president Megawati Soekarnoputri passed a law on special autonomy in Papua and West Papua provinces to guarantee Papuans the right to manage their own region politically, economically and culturally. The law also stipulated the allocation of special autonomy funds, valid for 20 years.

As the transfer of funds will end in 2021, the House of Representatives has included deliberation of Papua’s special autonomy status in this year’s National Legislation Program (Prolegnas) priority list.

“The House proposed the bill without discussing it with indigenous Papuans, who are the subject of the bill. Papuans are the ones who get to determine whether they want a second phase of special autonomy or independence,” Victor Yeimo, National Committee of West Papua (KNPB) spokesperson and one of the petition’s initiator, told The Jakarta Post on Saturday.

 

BUSINESS AND ECONOMICS NEWS AND HEADLINES

Govt to establish Nusantara Life, close down Jiwasraya
Kontan, headline 

The government plans to establish insurance company Nusantara Life to take over restructured policies belonging to problem-ridden, state-owned insurer Asuransi Jiwasraya. After the establishment of Nusantara Life, Jiwasraya will be closed.

State-Owned Enterprises (SOE) Deputy Minister Kartika Wirjoatmodjo said the plan was being discussed with the House of Representatives, so that it would have political backing.

Kartika also said Nusantara Life would be put under insurance holding company Bahana Pembinaan Usaha Indonesia (BPUI), which is restructuring Jiwasraya’s policies, specifically the JS Saving Plan policies, which brought down Jiwasraya.

Jiwasraya has rocked the country’s financial system after it defaulted on Rp 12.4 trillion (US$825 million) worth of policies, mostly JS Saving Plan policies, which integrated life insurance and investments. According to the Supreme Audit Committee, corruption and investment mismanagement in Jiwasraya has caused Rp 16.8 trillion in state losses. 

Kartika said Jiwasraya had booked negative equity of Rp 35.9 trillion. Therefore, Nusantara Life needs a capital injection from the government to take over policies from Jiwasraya. The planned capital injection is being discussed with the House.
 

Airlines struggle to avoid bankruptcy
Bisnis Indonesia, headline 

Indonesian airlines are facing threats of bankruptcy due to drops in passenger numbers as a result of the COVID-19 pandemic, with experts calling on the government to intervene to save the industry.

Garuda Indonesia president director Irfan Setiaputra said domestic airlines had explored all options to stay afloat by reducing their operational cost, adjusting capacity, increasing cargo and chartered services, negotiating with aircraft lessors and terminating contracts of unproductive aircrafts.

“The airline industry is facing a very heavy blow. So, don’t be too surprised when an airline in Indonesia cannot anymore operate in the near future,” Irfan said.

Lion Air Group corporate communication officer Danang Mandala Prihantoro said the group had taken a number of measures to remain in operation, including maximizing usage of its aircrafts, and not leasing new ones, while reducing the number of its employees by 2,600, mostly those whose contracts had expired.

Indef economist Bhima Yudhistira suggested that the government intervene to save the airline industry by reducing the burden on airlines, such as by cutting various costs at airports and airline fuels.

At the global level, seven airlines have gone bankrupt. They are Latam Airlines Group  (Chile), Avianca (Colombia), Flybe (United Kingdom), Virgin Australia (Australia), Compass Airlines (US), Trans States Airlines (US) and Thai Airways (Thailand).

 

Economy to see positive growth this year: Chief minister
Investor Daily, headline 

Coordinating Economic Minister Airlangga Hartarto said the economy would see positive growth this year. The government would ensure the economy saw positive growth in the third and fourth quarters by 5.4 percent each to compensate the projected minus 3.8 percent growth in the second quarter.

Airlangga said the government had adopted the strategy by maximizing spending and driving consumer demand. The government aims to distribute Rp 300 trillion (US$20.8 billion) in national economic recovery (PEN) stimulus each quarter.

Furthermore, he said, the government would boost growing sectors amid the COVID-19 pandemic, such as the food and beverage industry, logistics and protective suit manufacturing, while enhancing the digital economic sector with US$125 billion market potential up to 2025.

Besides driving demand, the government would ensure the implementation of national strategic projects through public private partnerships (PPP), mostly in infrastructure, which is targeted to reach Rp 1.4 quadrillion.

Govt, BI agree on $40b burden-sharing scheme
The Jakarta Post, p. 1 

The government and Bank Indonesia (BI) agreed to a burden-sharing scheme worth Rp 574.59 trillion (US$39.7 billion) on Monday to finance the nation’s COVID-19 response and bolster economic recovery efforts.

The scheme will see the central bank buying Rp 397.5 trillion in government bonds at a maximum coupon rate to correspond with the benchmark BI seven-day reverse repo rate (7DRRR) to fund health care and social safety nets. The central bank will then return the bond yield to the government in full on the same day it is paid. The 7DRRR is currently at 4.25 percent.

BI will also bear the costs of the government's stimulus package for small and medium enterprises (SMEs) as well as large businesses, which is estimated to generate Rp 177 trillion in debt.

The government plans to sell the bonds to the market with BI as a standby buyer. The central bank will also contribute to the costs, to be determined as the difference between the market rate and the BI 3-month reverse repo rate, minus 1 percent. The government will then fully repay the debts raised in the market to finance its “non-public goods” stimulus package, which includes capital injection for state-owned enterprises (SOEs).

The scheme will be implemented only for this year and the bonds will be tradable, which will allow Bank Indonesia to use them for its monetary operations.

Finance Minister Sri Mulyani Indrawati told reporters on Monday that the scheme had the support of President Joko “Jokowi” Widodo and the House of Representatives.

The bond burden-sharing scheme will help fund the government's budget deficit this year, projected to reach 6.34 percent of gross domestic product (GDP) with the government allocating Rp 695.2 trillion toward COVID-19 mitigation and economic recovery.

Lobster seed exports marred with irregularities
Koran Tempo, headline; Kompas, Economy and Business page 

Exports of one cargo of 134,119 lobster seeds belonging to three exporting companies – PT Aquatic SSLautan Rejeki, PT Tania Asia Marina, and PT Roya Samudera Nusantara – were withheld by the customs office due to incomplete requirements. After reported high-level intervention, the lobster seeds will be exported on July 9 through Soekarno-Hatta International Airport.

Sources at the Maritime Affairs and Fishery Ministry told Koran Tempo that the planned export of the 134,119 lobster seeds was not in compliancy with regulations set by the ministry and did not involve the marine quarantine office (BKIPM).

Meanwhile, Indonesian Sea Fish Farmers Association chairman Effendy Wong warned the government that exports of lobster seeds should not deprive local lobster breeders from good lobster seeds, as lobal breeders absorbed 70 percent of lobster seeds.

“How can the government ensure that 70 percent of seeds will be directed to local breeders? If the government cannot ensure that, it’s better not to let exports go on,” he told Kompas.

Earlier in May, Maritime Affairs and Fisheries Minister Edhy Prabowo lifted the lobster seed export ban imposed by his predecessor Susi Pujiastuti in 2016 on the grounds of ensuring sustainability of lobster farming in Indonesia.

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