GENERAL NEWS AND HEADLINES

Djoko Tjandra’s escape hints at faulty population data
Kompas (https://tinyurl.com/ybrsseqq); Detik (https://tinyurl.com/y9y486nd)

Responding to reports concerning graft convict Djoko Tjandra’s ability to procure a new Indonesian ID, despite his reported change of citizenship, the Home Ministry’s population and civil registry director general, Zudan Arif Fakrulloh, said his office did not own and could not access the country’s most wanted list (DPO). “We have also never been notified about a certain legal subject who is a fugitive,” said Zudan.

Indonesian Anticorruption Community Coordinator (MAKI) Boyamin Saiman said Djoko’s data recording, as well as the issuance of the new e-ID, was carried out at the South Jakarta Population and Civil Registration Office. Djoko was reportedly using the new ID to file a case review at the South Jakarta Court in a bid to overturn his guilty verdict.

 

ICW questions House, KPK’s closed hearing
Detik (https://tinyurl.com/ya3b2al7); CNN Indonesia (https://tinyurl.com/y8ebnngy)

Graft watchdog Indonesia Corruption Watch (ICW) is questioning the Corruption Eradication Commission (KPK) and House of Representatives Commission III’s decision to conduct a hearing at the former’s office in a closed manner.

“Firstly, conducting a hearing at the KPK’s office is not urgent. It may otherwise indicate that the KPK is subject to the executive and legislative power,” said ICW researcher Kurnia Ramadhana.

Furthermore, Kurnia highlighted that the hearing was closed to the public. “It indicates that the House wanted to hide something from the public,” Kurnia added.

House Commission III head Herman Hery said earlier today that both the House and the antigraft body had agreed to hold the hearing in private in fear that there may be “something sensitive” that might be misinterpreted by the public.

 

Indonesia to hold digital celebration of 75^th Independence Day amid COVID-19 concerns
The Jakarta Post (https://tinyurl.com/yc84w7xy)

In line with most other public events taking place amid the ongoing COVID-19 pandemic, Indonesia’s 75^th Independence Day is to be commemorated digitally on Aug. 17 in compliance with the prevailing health protocols.

Tourism and Creative Economy Minister Wishnutama Kusubandio said on Monday that the public could expect a different, albeit innovative, celebration of the country’s Independence Day as it would take place entirely online.

Wishnutama went on to say that the annual Independence Day telecast would also feature a 60-minute video displaying public creativity from various parts of the country.

In addition, the government will encourage public participation in singing the national anthem “Indonesia Raya” by activating sirens at 10:00 a.m. on Aug. 17, he said.

Presidential Secretariat head Heru Budi Hartono said during the same event that only a handful of state dignitaries would physically attend the annual ceremony at the Presidential Palace, including President Joko “Jokowi” Widodo, First Lady Iriana, Vice President Ma’ruf Amin and his wife Wury Estu Handayani.

 

BUSINESS AND ECONOMICS NEWS AND HEADLINES

Indonesia’s foreign exchange reserves increase to $131.7b in June
CNBC Indonesia, (https://tinyurl.com/ycqvkg2l); Kontan, (https://tinyurl.com/y8bx4kba); The Jakarta Post, (https://tinyurl.com/y85pqk2a); Kompas, (https://tinyurl.com/y73cq7w9) 

Indonesia’s foreign exchange (forex) reserves increased by US$1.2 billion to $131.7 billion in June following the government’s move to issue global sukuk (sharia compliant bonds) in the month, Bank Indonesia (BI) announced on Tuesday. The current reserves level, the highest since January, is estimated to be sufficient to support 8.1 months of imports and payment for the government’s short-term debts. Indonesia raised $2.5 billion from a three-tranche global sukuk offering on June 17, which aimed to help the government fund the battle against the COVID-19 pandemic.

 

House interviews three BI deputy governor candidates
CNBC Indonesia, (https://tinyurl.com/ycnvpu6y); CNN Indonesia, (https://tinyurl.com/y76oe59v); Tempo, (https://tinyurl.com/y75utquy) 

The House of Representatives is interviewing three Bank Indonesia (BI) deputy governor candidates. The selected candidate will replace Erwin Rijanto who ended his tenure last June. The candidates are BI’s macroprudential department head Juda Agung, monetary and economic policy department head Aida S. Biduman, and human resources department head Doni Primanton

 

Jokowi urges ministers to find alternative financing sources for toll road
Kontan, (https://tinyurl.com/yadlzljq); CNN Indonesia, (https://tinyurl.com/y9ztz27d) 

President Joko “Jokowi” Widodo has instructed his ministers, particularly Finance Minister Sri Mulyani Indrawati and Agrarian and Spatial Planning Minister Sofyan Djalil, to find alternative financing sources for the trans-Sumatra toll road project. Out of the Rp 476 trillion (US$32.8 billion) total investment announced previously by President Jokowi, there is a cost overrun estimated at Rp 386 trillion to complete the toll road construction by 2024. President Jokowi wants this project to become a part of the national economic recovery strategy. Besides giving instructions on the trans-Sumatra toll road project, the President also highlighted problems that hampered the progress of the Cileunyi-Sumedang-Dawungan (Cisumdawu) toll road project.

 

Jakarta office market resilient during new normal
The Jakarta Post, (https://tinyurl.com/ycqca45r) 

The office market in Jakarta has remained resilient due to the flexibility of landlords and tenants during the health crisis, despite the growing trend of working from home, property consulting firm Knight Frank has stated. Jakarta’s premium and grade-A office occupancy rates remained stable at around 76 percent in late May. The same level was seen in the second half of 2019, according to the company’s data.

Knight Frank business development director Martin Wijaya told The Jakarta Post in an online interview on June 19 that both office property owners and tenants in Jakarta had been able to compromise in terms of payment, which contributed to the city’s stable office occupancy rates. While landlords are able to be flexible with the payments, tenants’ commitment to honor the contracts, amid possible fines for termination, have been among the main factors that have maintained office occupancy rates in Jakarta, the firm stated. According to the company’s records, office space demand is currently dominated by sectors that have not been hit hard by the COVID-19 pandemic, such as the financial sector, e-commerce, food and beverage, and insurance.

However, despite the relative resiliency, new tenants are starting to take shorter lease terms, down from five years to three years to minimize risks. In addition, companies are postponing their decision to relocate, upgrade or expand.

Download PDF