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REFORMASI WEEKLY REVIEW
SUMMARY OVERVIEW
24 June 2016

Politics: Prospects for an independent candidacy for Jakarta Governor Basuki Purnama (‘Ahok’) have dimmed, as the Anti-Corruption Commission (KPK), prompted by Megawati’s PDI Perjuangan, started scrutinizing the financial transactions of aides and advisors assisting Purnama’s 2017 campaign. At issue is whether property developers wrongfully funded ‘Friends of Ahok’, the group canvassing voters for signatures to put Purnama on the ballot. The revised Regional Head Elections Law complicates matters by requiring authorities to verify every signature, with reference to an old (not current) voter list. Purnama may therefore broker a deal with Golkar for a party nomination (Page 2).

Regional Head Elections: Electoral authorities set forth the schedule for phases of the Jakarta gubernatorial election in February 2017 (p. 5).

Justice: The secretary general of the Public Works Ministry acknowledged in court that he took a payment last year from a subordinate, who is now a corruption defendant (p. 6). The Hanura parliamentarian Dewie Limpo received a six year sentence for corruption in an infrastructure development kickback case (p. 7).

Policy News: Legislators cited the possibility of passing the Tax Amnesty Bill next week, as agreement is coalescing around a tariff schedule (p. 9). The finance minister advocates the creation of an Indonesian tax haven comparable to Malaysia’s Labuan (p. 9). A planned regulation on investment disputes, mandated by the 2007 Investment Law, will reiterate that investors may find recourse in international arbitration (p. 10).

Institutional Reform: A golden handshake pilot program in two ministries is worthwhile, albeit too modest in scope. Parliamentarians nonetheless oppose it (p. 10).

Appointments: Parliamentarians praised Police Chief Nominee Com Gen Tito Karnavian, who outlined a no nonsense approach to internal governance reform (p. 12).

International: For the third time this year, Indonesian and Chinese vessels engaged in a confrontation over fishing in the Natuna Sea. The administration’s attention to fish poaching may harden its stance on the larger South China Sea dispute (p. 12).

Jakarta: Road rationing based on odd or even license plate numbers starts on 27 July, as a stop gap until Electronic Road Pricing (ERP) takes effect in late 2017 (p. 14).

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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