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Hello reader,

It’s not yet catastrophic, but Indonesia’s not doing very well economically. The country logged its fifth consecutive monthly deflation in September, which is the worst record under President Joko Widodo and also the worst since 1999.

Should we help by spending more? That should stimulate the economy, in theory, but some of us might be reluctant to do so amid uncertainties in the country and beyond.

In other news, we now have speakers for the DPR and DPD, with MPR to follow tonight. On a sad note, Indonesia has lost a screen legend in Marissa Haque, who passed away this morning at the age of 61.

All of that, and more, in today’s free edition of Nusantara Notes. Enjoy reading.

Cheers,

Andra

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Law/Politics

• Puan Maharani was officially reinstated as the speaker of the House of Representatives (DPR) for the 2024-2029 term yesterday evening. This marks her second term in the role, as the Indonesian Democratic Party of Struggle (PDI-P) now occupies the most seats in parliament with 110, followed by Golkar with 102, and Gerindra with 86.

• Meanwhile, Sultan B Najamudin was elected as the speaker of the Regional Representatives Council (DPD) after the former deputy speaker secured 95 votes out of a possible 151. Sultan supplanted last term’s DPD Speaker La Nyalla Mattalitti, who earned 56 votes. A vote to determine the speaker of the People’s Consultative Assembly (MPR) will be held tonight.

• A woman in Surabaya, East Java was arrested after stabbing a rideshare driver in the neck in an attempted robbery yesterday. To the police, she admitted that she was desperate to raise money for a trip to Australia, where she intended to stay for work. The driver survived the attack but admitted to intensive care.

• Twelve individuals were arrested in Batu, East Java for allegedly participating in a partner-swapping sex party. Each participant reportedly paid IDR 850,000 to attend. The organizer of the event may face up to one year and four months in prison for facilitating a commercial sexual activity, which is illegal under the Criminal Code (KUHP).

Business/Economy

• Indonesia has logged its fifth consecutive month-to-month deflation in what has been the worst streak under President Joko Widodo’s two tenures. Consumer prices fell 0.12% in September 2024. This is the longest deflation streak since the 1999 financial crisis, during which Indonesia went through eight consecutive months of deflation.

• The online lending sector in Indonesia continues to thrive, with profits reaching IDR 656.8 billion in August. According to the Financial Services Authority (OJK), this growth is attributed to increasing operational efficiency of lenders. While the sector remains lucrative, it also faces challenges such as regulatory oversight and ensuring consumer protection.

• A new report by the Center of Economic and Law Studies (Celios) suggests that the resumption of sea sand exports could cause severe economic consequences, including the loss of 34,000 jobs and a IDR 1.22 trillion decline in GDP. The export of sea sand, essential for construction and land reclamation, has been a contentious issue due to its environmental impact and economic trade-offs.

• On the government building numerous airports that now sit largely unused, Transportation Minister Budi Karya Sumadi explained that fewer Indonesians are flying due to economic constraints and rising ticket prices due to high operational costs in aviation. When the government began its push to build airports in 2014, there were around 700 planes in Indonesia. Now, there are around 420.

Everything Else

• Actress Marissa Haque passed away at the age of 61 in South Tangerang, Banten this morning. The screen legend was especially prominent in the ‘80s, during which she won a Citra Award for Best Supporting Actress for her performance in Tinggal Landas Buat Kekasih. Marissa was also active in politics, having been a member of PDI-P before moving to the National Mandate Party (PAN). She leaves behind her husband, actor Ikang Fawzi, with whom she had been married since 1986, as well as two daughters.

• Indonesia's Meteorology, Climatology, and Geophysics Agency (BMKG) claims that its tsunami warning system is now capable of distributing alerts in less than three minutes. This rapid response is vital for saving lives in the event of a tsunami, especially in vulnerable coastal regions of Indonesia, where natural disasters frequently occur.