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REFORMASI INFORMATION SERVICES

Reformasi Informastion Services (PT Ris) is an independent political risk consulting firm specializing in the analysis of investment conditions in Indonesia. Products include the Reformasi Weekly service, strategic consulting, customized research and syndicated reports.

REFORMASI WEEKLY

This subscription service enables foreign investors and international organizations to better assess the Indonesian operating environment. The service features a weekly, 12 page electronic report, as well as the provision of ad hoc research and briefings. The weekly service has continued without interruption since 2003.


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SUMMARY OVERVIEW — 25 JANUARY 2013

Politics: The media tycoon Hary Tanoesoedibjo abruptly resigned from Surya Paloh’s National Democrat (Nasdem) Party, delivering a blow to the party’s financially-driven campaign strategy. The exit of the controversial magnate actually presents Nasdem with an opportunity to begin building credibility with regard to reform – but it seems unlikely that the party will seize the opportunity. Instead, Nasdem welcomed two conventional Golkar figures into its ranks (Page 2). Jakarta Governor Joko Widodo reportedly felt angry after an abrasive exchange with an interviewer from tvOne. The incident may indicate that Widodo’s prestige may be causing consternation among putative presidential contestants (p. 4).

International: Former Trade Minister Mari Pangestu may benefit from several factors supporting her bid for chair of the World Trade Organization (WTO). However, her appointment would exacerbate the performance of an already weak cabinet (p. 5).

Justice: In Garut, West Java, the district chief married an 18 year old and divorced her four days later. In response, an inter branch process appears likely to impeach him, based on a stipulation in the 2004 Regional Governance Law regarding violations of oaths of office. Rather than an infringement on the democratic mandate of a directly elected regional head, the episode marks the appropriate application of a safeguard and the effective functioning of democratic institutions (p. 7). The Supreme Court gave former Partai Demokrat Treasurer Mohammed Nazaruddin seven years in jail – significantly longer than the sentence issued by a lower court (p. 8).

Policy News: Parliament is preparing to deliberate a Trade Bill and a related Industry Bill. Given the legislature’s track record, the measures could become instruments for furthering protectionism (p. 9).

Regional Elections: The incumbent governor of South Sulawesi, Syahrul Yasin Limpo, won re-election with 52 percent of the vote. A quintessentially patronage-style politician, Limpo’s win may be attributable to mediocre turnout and weak rivals (p. 9).

Economics: The Employers Association (Apindo) claims that 1,500 companies submitted requests to the government for permission to postpone increases in the mandatory minimum wage (p. 12). Despite a deteriorating regulatory environment, investment soared by 25 percent during 2012 (p. 12).

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