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Dear reader,

First off, a word of gratitude for Audien Hearing, the sponsor of this Nusantara Notes edition, which is free to read for all. Do check out their top-notch and affordable hearing aids (and support independent writers at the same time).

Today, we take a detour towards a politically sensitive topic: fuel subsidies. The government would of course rather rid of them if not for their popularity’s downfall, but perhaps this time they’re really keen on instituting changes. And soon.

Happy reading!

Cheers,

Andra

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Law/Politics

• The House of Representatives (DPR) has finally passed a long-anticipated revision of the Nature Conservation Law from 1990, which aims to strengthen the legal framework for environmental protection and biodiversity conservation in Indonesia. This revision includes updated measures to protect endangered species, regulate wildlife trade, and manage conservation areas more effectively.

• President Joko Widodo on Tuesday signed an executive order giving former General Elections Commission (KPU) chairman Hasyim Asy’ari a dishonorable discharge. Hasyim was fired last week after an ethics committee found that he had harassed and sexually coerced a subordinate last year.

• An investigation by the government[‘s online gambling task force found that 17 employees of the Corruption Eradication Commission (KPK) — meant to be one of the most morally upstanding institutions in all the land — had engaged in the illegal practice of online gambling. Of the alleged gamblers, nine, including a driver and an office staffer, had left, while eight are still working at KPK.

• The National Democrats (NasDem) is backing Gerindra’s Andra Soni and Achmad Dimyati Natakusumah from the Prosperous Justice Party (PKS) to run for governor/vice governor in Banten this November. The pair is expected to square up against former South Tangerang mayor Airin Rachmy Diany, a member of the Golkar party, for control of Java’s westernmost province.

• A 47-year-old man in Bali said he was wrongfully detained in late May, held for three days and tortured by 10 cops who were investigating a car theft case. After his release, the victim claims that the culprits approached him in June and coerced him into settling the case and withdrawing the police report against them. Word about the incident got out regardless, and the 10 cops are now under Internal Affairs investigation.

Business/Economy

Subsidies Drive Inefficiency

Here’s a possible Independence Day present from the government: better allocation of fuel subsidies.

Sure, we’ve witnessed numerous curbs and plans for subsidy reforms before, but the latest plan came out of the mouth of Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, and his words carry weight.

Luhut yesterday hinted at stricter regulations on subsidized fuel purchases starting August 17. This move, aimed at curbing excess consumption and promoting more efficient energy use, will likely impact motorists accustomed to affordable fuel. And that includes the 60% of the wealthy population who have been guzzling subsidized fuel even though they’re not entitled to it.

Why now? Well, the government is under some pressure after the Finance Ministry projected that the 2024 state budget (APBN) will close with a deficit of IDR 609.7 trillion, driven by large government spending.

While specific details about the new subsidy policy are yet to be disclosed, the government is expected to roll out new measures to ensure only those truly in need can access subsidized fuel.

In Other News

• To combat overtourism, President Jokowi invited Indonesia to look at the example set by Bhutan. While the tiny nation is not necessarily a big tourist draw like Indonesia, the president appreciates how it limits the number of tourists that can enter the country. That sense of exclusivity, Jokowi said, filters out low spending visitors in favor of the “high value” ones. 

• State-owned transportation companies in Indonesia are requesting IDR 10.27 trillion in state capital injections (PMN) for 2025. This substantial funding is intended to boost infrastructure development and improve transportation services nationwide.

• Explaining its IDR 7.12 trillion loss in 2023, which was 11,860% higher than the previous year, state-owned construction engineering company PT Wijaya Karya (WIKA) attributed the Whoosh Jakarta-Bandung high-speed rail project as the main contributing factor. WIKA said it spent IDR 6.1 trillion on the project.

• The Financial Services Authority (OJK) is stepping in following a scandal involving job applicants' data being misused to apply for online loans. The revelation has caused widespread alarm as unsuspecting individuals find themselves entangled in unwanted debt. OJK plans to summon peer-to-peer lenders to determine possible involvement and why lenders all too easily accept applications without thorough due diligence.

Everything Else

• Sipepek and Sithole are actual names of government apps in Indonesia, which, along with several others, have been accused of having sexist and sexually suggestive connotations. Amid widespread calls for change, officials in Cirebon, West Java defended the Sipepek name, saying that the word means “complete” in the region, and not a vulgar slang for the female genitalia as it is in other parts of the country.

• A woman at a checkout counter is having her 15 minutes of social media infamy thanks to a video clip in which she berates supermarket employees over room temperature UHT (ultra high temperature) milk cartons. Netizens ridiculed the woman as being out of touch, as UHT milk are often stored in room temperature — unlike fresh milk, which must be kept in a fridge. Even health experts have chimed in, telling the public that UHT milk only need to be stored in the fridge after the package is opened, and that it’s best consumed within 3-4 days after opening.