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REFORMASI WEEKLY REVIEW
SUMMARY OVERVIEW
22 May 2015

Politics: A district-level state administrative court (PTUN) ruled in favor of Aburizal Bakrie in Golkar’s leadership dispute, but Agung Laksono promptly appealed. The ruling is only a preliminary phase in one of two main legal processes underway for Golkar, but it may pressure Laksono to compromise – lest the party fail to field candidates in the Decem¬ber regional head elections (Page 2). Former Vice Foreign Minister Dino Pati Djalal may be one of two potential appointees as secretary general of Partai Demokrat (p. 4).

Justice: The Lawyers Association (Peradi) cleared former Anti-Corruption Commission (KPK) member Bambang Widjojanto in the 2010 case of allegedly falsified testimony. At issue is whether state prosecutors will carry the case forward (p. 6).

Policy News: President Joko Widodo pledged to turn his attention to the performance of individual ministries in reaching their targets for budget spending, especially in infrastructure (p. 8). In a revised decree, the president has kept the National Bureaucratic Reform Team under the vice president – even though the new vice president has opposed such reforms in the past (p. 9).

Appointments: Based on input provided by State Secretary Pratikno, President Widodo appointed an impressive nine-member Selection Committee to screen candidates for the independent KPK. This provides a much-needed boost for the beleaguered anti graft body. The appointments also highlight the tantalizing (but rarely seen) potential for reform minded decisions under the Widodo administration (p. 12).

Economics: The central bank held interest rates stable, citing concern about the currency (p. 14). The current account deficit narrowed in the first quarter, but this is attributable largely to weakening demand, rather than rising exports (p. 14). The ratings agency Standard & Poor’s upgraded Indonesia’s outlook from stable to positive, but it said that an investment grade rating will require better “quality of expenditure” (p. 15).

Infrastructure: A director in the Public Works Ministry disclosed details about spending on land acquisition through the second week of May (p. 16).

Outlook: With exports languishing and questions arising about the strength of consumption, hopes for averting a slump in growth to below five percent increasingly hinge on the implementation of infrastructure spending. However, few signs exist of high level leadership on the rolling out of new land acquisition rules (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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