Indonesia Officially Enters Recession (Oct 30 - Nov 6)
First recession in 22 years
Hello Coconauts!
The spotlight this week has mainly focused on the planned imminent homecoming of the country’s infamous hardline cleric, Rizieq Shihab. It’s hard to believe it’s been three years since the former pornography suspect has set foot in Indonesia, and he will surely find this country markedly different from when he left it. For one, we’re officially in a recession now.
But first, we have some important updates regarding COVID-19 in Indonesia. On the surface, things were looking up (or down, if we’re looking at it from a statistical perspective), yet we couldn’t help but be a little skeptical with the official numbers. We were right.
Stay safe and we’ll see you next Friday!
COVID-19
The latest
Indonesia’s daily count dropped to below 3,000 in the first three days of November — the first time the country has done so since late August. The worst seemed to be behind the country in terms of caseload, but the numbers quickly returned to peak September and October levels with 3,356 new cases on Nov. 4 and 4,065 new cases on Nov. 5.
It has since been established that the drop was caused by data hold up — particularly from regions outside of Jakarta — due to relative inactivity during the five-day Prophet Muhammad Birthday’s long weekend last week. The number of test samples recorded during this period fell significantly.
Indonesia’s positivity rate stands at around 12-13 percent in November, only slightly lower than the rates from the previous two months.
Terawan a role model?
Despite widespread criticism over the government’s handling of the pandemic, a lot of which has been directed at the seemingly MIA Health Minister Terawan Agus Putranto, the ministry said the World Health Organization (WHO) has invited the minister to speak about his COVID-19 successes in a virtual discussion today.
While the government has inevitably claimed this as a PR win in the eyes of the world, eyebrows have been raised in Indonesia at the prospect of Terawan being seen as a role model.
Business and the economy
The recession is here
Indonesia is officially in an economic recession after the National Statistics Agency (BPS) yesterday announced negative growths for two successive quarters. Indonesia’s GDP contracted by 5.32 percent in Q2 2020, followed by 3.49 percent in Q3 2020. This is Indonesia’s first recession since the 1998 economic crisis.
The Presidential Palace is adamant that the worst is behind us, with the improvement in Q3 offering some hope, though it noted that the government must continue to provide stimulus checks in order to boost household spending, particularly among the country’s middle class.
Who cares about a typo?
That is essentially the official line from the government after discrepancies were found in the controversial Job Creation Law, which was signed into law by President Joko Widodo this week. The government has said that typos shouldn’t take away from the country’s need to create jobs and draw investment, which the law is designed to do.
One notable error was found early on in the legal document, with Article 6 making reference to a clause in an earlier article, which has since been removed since the manuscript was but a draft. Of course, it’s important to note that the manuscript underwent four changes since it received House of Parliament (DPR) approval in early October.
Legal experts say the “fatal” errors in the manuscript expose a flawed and rushed legislative process. Some workers’ associations, who have filed a judicial review against the law with the Constitutional Court, would undoubtedly be buoyed by recent developments. Workers, who have staged mass protests throughout the country in the past few weeks, have argued that the law could erode their rights.
Tourism rebound
The Tourism and Creative Economy Ministry says it’s prioritizing four popular holiday destinations for a stimulus and promotion program in order to resuscitate an ailing tourism sector. The four regions are Batam and Bintan Island in the Riau Islands Province, Bandung and Cirebon in West Java, the agglomeration of Yogyakarta, Surakarta and Semarang (Joglosemar), and Bali. The focus, for now, will continue to be on attracting domestic tourists, as Indonesia’s border is still shut to foreign arrivals.
Bali, which saw a spike in domestic holidaymakers over the long weekend, has launched programs to improve hygiene at tourist facilities and is seeking to boost its income from medical tourism.
Further reading:
Indonesia’s new Job Creation Law opens gate to more foreign workers (Coconuts Jakarta)
The Job Creation Law has, in essence, simplified the recruitment process of foreign workers, erasing several document requirements previously outlined in Law No. 13/2003 on Manpower.
Either Biden or Trump, Indonesia wins (Jakarta Globe)
Indonesia stands to benefit from trade with the United States, regardless of who wins the US 2020 presidential election, as the total exports and imports to and from the world's largest economy expected to double to $60 billion with a healthy trade surplus in the next two years.
Across the archipelago
Rizieq returns (for real)
Hardline group Islamic Defenders Front (FPI) leader Rizieq Shihab is set to touch down in Indonesia on Tuesday, more than three years after he went on self-imposed exile in Saudi Arabia to escape charges related to pornography.
This makes the seventh time that Rizieq has announced plans for a homecoming. What makes this time different is that the firebrand cleric claims to have flight tickets and travel documents in hand. He and his supporters previously blamed both Indonesian and Saudi authorities for blocking his return to negate his political influence in Indonesia.
Rizieq was a prominent figure among the opposition before his departure, but he is returning to an Indonesia where opposition leaders have joined President Jokowi’s government, including 2019 presidential challenger Prabowo Subianto.
LV getting the brunt of Francophobia
Indonesia’s Islamic groups continued protests and calls for boycott against France, angered by statements by French President Emmanuel Macron that were deemed to be offensive towards Islam.
At a demonstration outside the French embassy in Jakarta, several female protesters were seen stomping on Louis Vuitton handbags to symbolize rejection of French products. It’s not known if the bags were genuine or cheap knock-offs.
Some prominent Indonesians took to social media to express their displeasure of France, such as former MTV VJ Arie Untung, who threw his luxury fashion items from the likes of Dior and Givenchy on the floor.
Downplaying Semanggi
The Jakarta State Administrative Court (PTUN) has ordered Attorney General ST Burhanuddin to recognize that the shootings in Semanggi, Central Jakarta in 1998 and 1999, in which state troops killed at least 29 unarmed civilians and student protesters who fought for democratic reform, were gross human rights violations.
During a hearing with the House of Representatives (DPR) in January, Burhanuddin controversially stated that a House plenary meeting had “concluded that the [Semanggi shootings] were not gross human rights abuses.” Families of the victims subsequently filed a lawsuit against the AG.
The AGO says it plans to submit an appeal against the ruling. This is the same office that has stalled investigation into the alleged human rights violations in Semanggi for years.
Bigotry at school
A religious studies teacher at a high school in East Jakarta has caused public uproar after she urged her students not to vote for non-Muslim candidates in an upcoming student union elections. This case brings back similar sentiments former Governor Basuki “Ahok” Tjahaja Purnama faced when he sought reelection in Jakarta in 2017.
Though one student has reported the teacher to the police on suspicion of hate speech, the city’s Education Board and several public officials has lamented that this has become a criminal matter, believing that an apology and workplace sanctions should suffice.
Top Coconuts Jakarta stories this week
Indonesian dude casually hangs on for dear life after driving motorcycle on railway bridge (Video)
High-end fashion the victim as Indonesian Muslims’ anger toward France swells
Cyclists can now hire motorcycle taxi drivers as security escorts amid rise in muggings
Indonesia’s new Job Creation Law opens gate to more foreign workers
Top Coconuts Bali stories this week
