OK, Google. Pay up | January 22, 2025

Indonesia fines tech giant over unfair business practices

Hello reader,

Instead of Googling it, just scroll down to learn why Indonesia has fined Google an obscene amount of cash (for us, not for the tech giant).

You’ll also be exposed to some of the day’s top stories from and related to Indonesia, including a key development in the case of the mysterious sea fence, Indonesians in the US fighting against a Trump executive order, and a reel huge startup scandal.

Enjoy reading!

Cheers,

Andra

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Law/Politics

Tourism Minister Widiyanti Putri

  • Tourism Minister Widiyanti Putri is facing public scrutiny after she was listed as the wealthiest official in President Prabowo Subianto’s cabinet, with a reported net worth of IDR 5.43 trillion in the 2024 LHKPN state officials’ wealth report. A seasoned entrepreneur and Pepperdine graduate, Widiyanti previously served as a commissioner at PT Teladan Prima Agro, an agribusiness and renewable energy firm managing 60,497 hectares of plantations in East Kalimantan. Coming from a prominent business family, she is also active in philanthropy through roles in multiple non-profits.

  • Minister of Agrarian Affairs and Spatial Planning Nusron Wahid annulled the building use rights (SHGB) and ownership certificates (SHM) for the controversial sea fence in Tangerang, Banten. He revealed that these certificates, issued between 2022 and 2023, were procedurally and materially flawed. The land, under the sea, is outside the coastal line and cannot be privately owned. Due to its procedural and material defects, the ministry has the authority to revoke the certificates without court orders. Investigations are underway, including calling in survey officers and the licensed surveyor office involved in the measurement.

  • Coordinating Minister for Law, Human Rights, Immigration, and Correctional Affairs Yusril Ihza Mahendra said an agreement will soon be reached with France regarding the repatriation of Serge Atlaoui, a French national and death row inmate convicted of drug-related offenses. Currently, Atlaoui is being treated for cancer at Cipto Mangunkusumo Hospital in Jakarta, a factor contributing to the likelihood of the transfer being approved. Atlaoui was convicted in 2005 for his role in operating a major drug factory in Banten. Despite a rejected clemency appeal in 2014 and being listed for execution in 2015, his case remains unresolved due to legal challenges.

  • Officials in Bali shut down “global creative town” PARQ Ubud due to breaches of local regulations on public order and licensing. PARQ, which was dubbed “Russian Village,” featured apartments, coworking spaces, restaurants, and cafes, and had previously been under scrutiny for activities involving foreign nationals. Despite multiple warnings and meetings with authorities in 2024, the management failed to present required permits. Authorities have now halted all operations and mandated the restoration of its protected farmland site to its original state.

  • The New Hampshire Indonesian Community Support, alongside two other immigrants' rights organizations, is suing US President Donald Trump over an executive order that would end birthright citizenship for some children of immigrants, calling it unconstitutional. The order, effective February 19, 2025, denies citizenship to babies born in the US to undocumented immigrants or those with temporary legal status. Critics see the order as an attempt to disenfranchise people of color, especially Asian and Middle Eastern families.

Business/Economy

  • The Business Competition Supervisory Commission (KPPU) has fined Google IDR 202.5 billion for alleged unfair business practices related to its Google Play Store payment system, which violated the country’s Anti-Monopoly and Unfair Business Practices Law. The investigation, which began in 2022, found that Google required app developers to use its Google Play Billing system, charging up to 30% in fees and threatening to remove non-compliant apps from the platform. KPPU stated that these practices harmed developers by reducing user engagement and revenue, while benefiting Google due to its dominant 93% market share in Indonesia’s app distribution ecosystem. Google has announced plans to appeal the decision.

  • Prominent agritech startup eFishery is under investigation for allegedly inflating its revenue and profits over several years. An internal probe, initiated by a whistleblower, found that eFishery might have exaggerated its revenue by nearly US$600 million in 2024, meaning over 75% of the reported figures could be fake. The company, which raised funds from investors like SoftBank and Temasek, claimed a US$16 million profit, but the investigation suggests it actually incurred a US$35.4 million loss. The company’s assets, including 400,000 fish feeders, were also significantly overstated. The investigation has led to the dismissal of CEO Gibran Huzaifah and raised concerns about corporate governance in Indonesia's startup sector.

  • The Ministry of Manpower reported 77,695 layoffs in 2024, with Jakarta recording the highest number at 17,085 workers, accounting for 21.91% of the total. Central Java followed with 13,130 layoffs, Banten with 13,042, and West Java with 10,661. Deputy Manpower Minister Emmanuel Ebenezer attributed the layoffs partly to Trade Ministry Regulation No. 8/2024, which eased imports of finished goods, drawing criticism from both employers and labor unions.

  • Deputy Minister of Industry Faisol Riza urged Batam, Riau Islands, to prepare for potential Chinese factory relocations following Donald Trump's election as US President, which may result in new tariff barriers on Chinese imports. Batam, with its 19 industrial zones and several Special Economic Zones (SEZs), is well-positioned to attract investments from Chinese companies seeking to relocate to ASEAN countries for direct exports. Faisol emphasized readiness in sectors like electronics, textiles, footwear, and automotive, highlighting Batam's strategic location and stable economy as key advantages.

Everything Else

  • A massive fire broke out early Tuesday in a densely populated neighborhood in Kemayoran, Central Jakarta, destroying 543 homes and leaving 1,797 people from 607 families homeless. The fire, which started around midnight, spread rapidly, forcing residents to call in 34 fire trucks and 170 personnel, who battled the blaze for five hours. Witnesses reported smelling burning cables shortly before the fire, believed to have originated from the roof of a house. While no fatalities were reported, two residents were treated for smoke inhalation and are recovering.

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