Category: Indonesia

July 19, 2021

INDONESIA: Next week could be key in effort to bring down cases

Indonesia, Politics

Bob Herrera-Lim

The government is expected to extend the emergency restrictions on public activities (PPKM Emergency), which are scheduled to end on 20 July, by another 14 to 21 days. The measures cover Java and Bali, as well as 15 other...

July 1, 2021

INDONESIA: Widodo announces wider restrictions over half the country

Indonesia, Politics

Bob Herrera-Lim

Measures will limit most commercial and social activities on Java and Bali until 20 July, with the goal of cutting in half the current new case rate of roughly 20,000 per day. Government is targeting raising the daily vaccination rate...

May 10, 2021

INDONESIA: Finance wants to raise the VAT rate but will face stiff opposition

Emerging Markets, Indonesia, Politics

Bob Herrera-Lim

The government will discuss with parliament a possible increase in the current VAT rate of 10%, according to a presentation last week by Finance Minister Sri Mulyani Indrawati, although she did not specify what the target rate would be....

March 4, 2021

INDONESIA: Widodo’s reforms in perspective

Emerging Markets, Indonesia, Politics

Bob Herrera-Lim

President Joko Widodo over the past three months implemented some of the most significant policy reforms since the early 2000s, specifically: The passage of the Omnibus Law on Job Creation, which streamlines investment-related rules across 79 laws. A new negative investment...

March 18, 2021

INDONESIA: Why the sovereign wealth fund could punch well above its weight

Emerging Markets, Indonesia, Politics

Bob Herrera-Lim

The new sovereign fund will have a modest capitalization initially, but its investment priorities will signal the government’s priorities. Whether the fund will evolve into a politically-directed entity or an effective catalyst for foreign and private investment is the main...

February 12, 2021

INDONESIA: Draft regulation could result in a significant drop in severance pay

Emerging Markets, Indonesia, Politics

Bob Herrera-Lim

The Indonesian government is set to soon issue a regulation — possibly even by next week — that would cover the use of short-term labor contracts and may, based on the drafts available so far, result in significant reductions...

January 11, 2021

INDONESIA: Vaccination program will have to overcome three hurdles

Emerging Markets, Indonesia, Politics

Bob Herrera-Lim

The Sinovac vaccine has received the needed regulatory approvals, paving the way for the formal start of the vaccination program this week. The first vaccine supply will go to 2.6 million recipients. Although the initial distribution to provincial-level governments seems to...

December 22, 2020

INDONESIA: Common ties, experience are key features of new cabinet appointments

Indonesia, Politics

Bob Herrera-Lim

President Joko Widodo today replaced six cabinet ministers, two of whom had been accused of corruption. Although maintaining party representation in the cabinet also often drives cabinet reshuffles, it did not seem to play as much a part in...

January 22, 2021

SOUTHEAST ASIA: Malaysia, Indonesia struggle to contain Covid spikes before CNY

Asia, Emerging Markets, Indonesia, Malaysia, Politics
editorial

Bob Herrera-Lim

In a note last December, we highlighted the Philippines, Indonesia, and Malaysia as the countries to watch for possible post-holiday surges. Surprisingly, the Philippines appears to have avoided worsening the outbreak. However, the current movement...

December 11, 2020

INDONESIA: Another cabinet minister falls to anti-corruption drive

Indonesia, Politics

Bob Herrera-Lim

The recent high-profile arrests of two cabinet ministers for corruption delivers several near-term benefits.However, only time will tell if these developments reflect real institutional momentum or are more of a public relations effort.The arrest of a minister from the...