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Hello reader,

Let’s just say I’ve become increasingly less bullish on the short-term future of Indonesian democracy. This especially so after PDI-P, of all parties, did not flat out reject the idea of joining Prabowo’s coalition, which would practically allow the next administration to govern without opposition.

Read on about this latest major development in Indonesian politics in this free edition of Nusantara Notes. If you haven’t already, you can also make like PDI-P and join the dark side by subscribing to enjoy unrestricted access to this newsletter.

Cheers,

Andra

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Law/Politics

PDI-P Taking a Dip

Whether we like it or not, the Indonesian Democratic Party of Struggle (PDI-P) is the only major party standing in the way of President-elect Prabowo Subianto’s huge coalition governing without any meaningful opposition. 

And yet before the next government has even taken office, PDI-P has already shown that we can’t place much faith in its resolve.

Responding to recent rumors about PDI-P joining Prabowo’s coalition government, the party’s Central Executive Board (DPP) Chairman Said Abdullah said that while they have not discussed the matter internally, they are not opposed to the idea if their visions and values align with Prabowo’s. 

In political speak, that is essentially code for, “we’re up for it, but what will you give to us in return?”

The public needn’t worry, though, as Said vowed that PDI-P will maintain a critical stance whether they’re in the coalition or out of it.

That would be great in theory. But after other foe-turned-friend parties like the National Awakening Party (PKB) and the Prosperous Justice Party (PKS) already showed that they had to sell out to join Prabowo’s coalition, we’ve already seen how their critical streaks have waned.

In Other News

• Jamaah Islamiyah (JI), the Islamist militant group behind several high-profile terrorist attacks, including the 2002 Bali bombings, has officially disbanded and issued a public apology to Indonesia. The group’s leaders apologized to the state and citizens, stating that they regret their past actions and have turned away from violence. They are hoping that Islamic organizations in the country would accept their former members.

• A bill proposing changes to the structure of ministries and the Presidential Advisory Council (Wantimpres) is set to be brought before the House of Representatives (DPR) on Thursday. The new law would allow for an increase in the number of ministries and the number of Wantimpres executives, which have raised concerns that it would allow President-elect Prabowo Subianto to further solidify his power.

• In Medan, North Sumatra, a university lecturer is facing the death penalty for the alleged premeditated murder of her husband. The woman had taken out an insurance policy just before staging an elaborate hoax, in which she claimed her husband was killed in a traffic hit-and-run. Police believe she actually assaulted her husband to death.

• The escalating conflict within the Indonesian Chamber of Commerce and Industry (Kadin) took another turn as the special staff of its ousted chairman reported being assaulted by several individuals in Bekasi, West Java yesterday. The case has been reported to the Jakarta Metro Police, and investigations are ongoing.

Business/Economy

• Bank Indonesia (BI) has cut its benchmark interest rate by 0.25% to 6% — the first cut since February 2021 — in an apparent move to stimulate the economy. The cut is expected to encourage borrowing and investment, providing a boost to various sectors of the economy.

• President Joko Widodo has urged officials to speed up the approval process for geothermal energy projects, including the necessary environmental impact assessments (AMDAL). The president lamented that investors currently have to wait up to six years to obtain approval, while stressing that delays in this sector could hinder Indonesia’s green energy targets.

• Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan has met with AirAsia executives to discuss the steep costs of aviation fuel in Indonesia, which, in turn, have led to higher ticket prices. He hinted at the presence of "hidden costs" contributing to higher aviation fuel prices and pledged to look into the matter further.

• Virgin Australia has become the first international airline to use Pertamina’s bioavtur fuel. The sustainable aviation fuel is provided to Virgin Australia jets in Bali’s Ngurah Rai International Airport, with flights to and from Australia’s Brisbane, Gold Coast, Melbourne, and Sydney.

• Indonesian tech giant GoTo has finalized a strategic agreement with China’s Alibaba, sending GoTo’s shares soaring. In the agreement, Alibaba as a shareholder of GoTo has pledged to provide assistance in the development of a cloud computing ecosystem for GoTo for the next five years.

Everything Else

• A magnitude 4.9 earthquake struck Bandung Regency, West Java today. While the quake caused property damage, no casualties have been reported so far. Whoosh, the Jakarta-Bandung high-speed train, cancelled 14 trips as the company carried out inspections for damages on the train tracks.