Hello reader,

Happy Hump Day. To get over the mundanity of life, let’s begin with a tale of government corruption—but not just any other case. This one involves a couple. The Bonnie and Clyde of institutional graft in Indonesia, if you will. Without all the murders.

In addition, there’s some major economic news, which might impact your next lease.

Until tomorrow!

Cheers,

Andra

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Law/Politics

• Semarang Mayor Hevearita Gunaryanti Rahayu, AKA Ita, and her husband, Alwin Basri, a member of the Central Java Regional Legislative Council (DPRD), are accused of receiving IDR 5 billion in bribes related to procurement in Semarang from 2023–2024. The South Jakarta District Court rejected Ita’s pretrial motion, affirming the Corruption Eradication Commision’s (KPK) evidence and procedures, including searches, seizures, and travel bans. The KPK uncovered evidence pointing to bribery in procurement, unauthorized payroll deductions, and improper tax incentives.

• East Jakarta Police have confirmed that George Sugama Halim, a bakery owner's son accused of assaulting an employee, is mentally fit to face legal responsibility. A psychiatric report from Kramat Jati Police Hospital refuted his family's claims of mental disorders, which they argued caused his violent behavior, including incidents involving family members. George, 35, is facing up to five years in prison for the assault, which was captured in a video that went viral last month.

• After a few days on the run, police have arrested Nanang Irawan, AKA Limbad, on suspicion of murdering actor Sandy Permana. Limbad is facing up to 15 years in prison for fatally stabbing Sandy following a neighborhood dispute. Limbad, who fled after the incident, was apprehended in Karawang, West Java. Known locally as a reclusive figure, Limbad had previously lived next door to Sandy before selling his home.

• The Attorney General's Office (AGO) has pledged legal support for Bogor Agricultural University (IPB) professor Bambang Hero Saharjo, who was reported to Bangka Belitung Police by a lawyer for allegedly providing false testimony in calculating IDR 271 trillion in environmental losses linked to a major corruption scandal related to tin mining in the region. The AGO emphasized that expert witnesses like Bambang are protected under the Witness and Victim Protection Act, noting that his findings were accepted by the court, which acknowledged the damages as part of the IDR 300 trillion state loss.

• After the puzzling sudden appearance of a 30-kilometer bamboo fence off the coast of Tangerang, another one, measuring around 2 kilometers, was discovered off the coast of Bekasi recently. The West Java Maritime and Fisheries Agency (DKP) clarified that the mysterious sea fence is part of a government-backed project for a fisheries port. However, the Ministry of Maritime Affairs and Fisheries (KKP) stated the bamboo fence lacks a permit and initiated legal action, including issuing a cease-and-desist order and investigating the site for unapproved construction activities.

Business/Economy

• Bank Indonesia (BI) has lowered its benchmark BI 7-Day Reverse Repo Rate by 25 basis points (bps) to 5.75%, as announced during the BI Board of Governors meeting. The lending facility rate was also reduced by 25 bps to 6.5%, and the deposit facility rate dropped to 5%. Governor Perry Warjiyo stated the decision reflects a comprehensive assessment of global and domestic economic conditions, aligning with controlled inflation projections of 2.5% ± 1% for 2025-2026 and a stable rupiah exchange rate.

• The Central Statistics Agency (BPS) reported a continued decline in Indonesia's poverty rate, with 24.06 million people living in poverty as of September 2024, marking a decrease of 1.16 million from March 2024. This brings the poverty rate to 8.57%, the lowest since BPS began tracking it in 1960 and the first time the figure has dropped below 9%. While both urban and rural areas have seen declining poverty rates, disparities remain, with rural poverty at 11.34% compared to 6.66% in urban areas as of September 2024.

• Deputy Minister of Housing and Settlements Fahri Hamzah announced Japan’s interest in joining the government’s program to build three million homes annually, focusing on sustainable and green building initiatives. President Prabowo Subianto’s program, aimed at addressing Indonesia’s 10 million homeownership backlog and 26.9 million substandard homes, allocates 2 million homes for rural areas and 1 million for urban zones. With state budget constraints, the initiative heavily relies on domestic and international private and government investments. Qatar, the UAE, and China have also expressed interest.

• The Directorate General of Customs and Excise (DJBC) reported revenue from customs and excise reaching IDR 300.2 trillion in 2024, a 4.9% increase year-on-year, fulfilling 93.5% of the state budget target. This growth was driven by higher import values, the strengthening of the US dollar, export relaxation policies, rising crude palm oil (CPO) prices, and increased tobacco and alcohol excise rates.

Everything Else

• The idea of a full month off school during Ramadan is actually gaining steam. Minister of Primary and Secondary Education Abdul Mu'ti confirmed discussions across ministries about the proposed holiday but said the decision awaits a joint circular from the Education, Religious Affairs, and Home Affairs Ministries. Historically practiced during the Dutch colonial and Old Order eras, the holiday was discontinued during the New Order and reintroduced by former President Abdurrahman Wahud (Gus Dur) before being abolished again. The idea aims to accommodate Ramadan observances for students and educators in the Muslim majority country. This year, Ramadan is expected to be held from February 28 to March 30.