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REFORMASI WEEKLY REVIEW
SUMMARY OVERVIEW
31 July 2015

Politics: Eight parties in Surabaya, East Java appear to be colluding to prevent the popular mayor, Tri Rismaharini, from being able to stand for re election (Page 2). Still no clear indications exist about a possible cabinet reshuffle (p. 3). Certain Golkar figures espouse reconciliation in the wake of agreements on nominating regional-head candidates, but an in intra party power-sharing accord will likely be elusive (p. 3).

Regional Head Elections: Authorities successfully registered candidates for the vast bulk of 269 regions conducting elections in December. However, problems affect 15 contests that each have fewer than two tickets registered (p. 4). Lively races seem likely for two important Jakarta suburbs (p. 5).

Justice: Under the respected new Jakarta police chief, Insp Gen Tito Karnavian, the sensational arrest of a Trade Ministry director general lifts prospects for rectifying port dwelling time – while injecting sorely-needed momentum into anti corruption efforts (p. 6). For the fourth time, state prosecutors rejected the police file on former Anti Corruption Commission (KPK) Chair Abraham Samad (p. 8).

Policy News: A policy package from the independent Financial Services Authority (OJK) pledges improvements for market governance and legal certainty, but easing prudential rules on lending entails risk (p. 9). A contract extension for a key foreign partner in port operations, Hutchison, has drawn condemnation from a union as well as the transport minister (p. 10). The labor minister recently tightened restrictions on hiring foreign workers, complicating conditions for investment (p. 12).

International: A visit by the UK prime minister highlighted valuable opportunities for boosting the economy, but support from policymakers would be necessary (p. 14).

Infrastructure: An imminent presidential regulation may further strengthen the Development Planning Agency (Bappenas), restoring certain budgetary powers and mandating it to prepare public-private partnerships (PPPs) in infrastructure. But whether the agency is ready for the enhanced role means to be seen (p. 15).

Appointments: The new immigration head, a former Bali police chief, pledged to invigorate enforcement (p. 17).

Economics: Meteorologists warned of particularly severe El Niño effects (p. 17).

Reformasi Weekly Review provides timely, relevant and independent analysis on Indonesian political and policy news. Delivered electronically every Friday, Reformasi Weekly is written by Kevin O’Rourke, author of the book Reformasi. For subscription information please contact. Reformasi Weekly is a product of PT Reformasi Info Sastra.
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