Indonesia

Severe Haze Disrupts Activities Across Sumatra and Kalimantan (12 Sep – Ongoing)

 The aviation, shipping and education sectors in the islands of Sumatra and Kalimantan have been affected as a severe haze blankets the region. Singapore and Malaysia have also been badly affected by the haze, with schools across the latter closed due to unhealthy PM10 Pollutant Standard Index (PSI) levels.  While President Joko Widodo “Jokowi” said that Indonesia has made “every effort” to fight the fires, his government has been criticised by observers for failing to do enough. In particular, Malaysian Prime Minister Dr Mahathir Mohamad wondered why Malaysia’s offer to send firefighting aircraft to help control the blazes was rebuffed.

The haze is set to continue for the near future. The PSI in Pekanbaru, Sumatra passed a record-breaking level of 700 on 22 September, while the skies in Jambi province turned red due to “Rayleigh scattering” – a phenomenon related to the dispersal of light particles.

 Sources: Jakarta Globe, Malay Mail, New Straits Times, The Straits Times, Al Jazeera, Free Malaysia Today, The Jakarta Post, The Straits Times

Protests Rock Indonesia Over KPK Revision Law, Criminal Code (16 Sep – Ongoing)

 Thousands of students across Java, Sumatra and Sulawesi turned out in protests against controversial bills over the past week, with one particularly large protest in front of parliament building in Jakarta. Aside from bills concerning manpower, land, mining and correctional procedures, the main issues drawing the protesters’ ire were the proposed revisions to the 2002 Corruption Education Commission (KPK) law and the criminal code. Some have accused the government of trying to return the country to the “new order” era under Former-President Suharto.

 Sources: The Jakarta Post (Premium), The Jakarta Post, SCMP, The Guardian

The KPK bill, which was approved by the House after less than a week of deliberation on 17 September, included items such as bringing the formerly independent commission under the executive office, and setting up a supervisory board that can issue permits for KPK officials to investigate cases. The selection of South Sumatra Police Chief Inspector, General Firli Bahuri, as the new KPK Chairman on 16 September also drew widespread criticism over past accusations of misconduct against him.

Justice and Human Rights Minister Yasonna Laoly said that the government was not seeking to weaken the KPK, and that the changes were proposed in the interests of increasing oversight and defending the rights of potential wiretap subjects. However, at least two antigraft activist groups have announced plans to file a lawsuit against the law, on the grounds that the process was flawed and the revisions undermine the agency. In the meantime, the KPK is continuing their regular work, and is investigating Sports Minister Imam Nahrawi for allegedly receiving bribes from the National Sports Committee

 Sources: Jakarta Globe, Antara News, Jakarta Globe, Jakarta Globe, Jakarta Globe

New Criminal Code Bill Halted by Jokowi After Public Outcry (20 Sep)

 President Jokowi called on the House of Representatives to hold off on passing a bill containing revisions to the criminal code on Friday, 20 September. The bill was originally scheduled to be ratified on Tuesday, 23 September. Citing public concerns over some of the amendments, Jokowi called for the 14 of the articles to be “thoroughly reviewed” by the House with input from communities and members of the public. Observers have pointed out that some amendments have serious implications for businesses, including two that stipulated that managers or the controlling shareholder will be held criminally liable for their company. Australia also issued a travel warning for its citizens travelling in Indonesia, especially in Bali, due to proposed laws surrounding issues such as extramarital sex and same-sex relations.

 Sources: Channel NewsAsia, The Jakarta Post, The Economist, Jakarta Globe

Economic News: Indonesia Cuts Rate for 3^rd Time in as Many Months (19 Sep)

 Bank Indonesia cut its key interest rate on Thursday, 19 September, for a third straight month. The move had been predicted by various sources as Indonesia sought to support its domestic economic growth amid slowing global economic conditions, particularly after the US Federal Reserve lowered borrowing costs on Wednesday. Another contributing factor was Indonesia’s growing current account deficit which reached 3% of Indonesia’s gross domestic product (GDP) in the second quarter of 2019.

 Sources: The Straits Times, Reuters

Looking to Leaders’ Retreat, Indonesia and Singapore Discuss Cooperation (16 Sep)

 Singaporean and Indonesian leaders met to identify new opportunities for collaboration in the lead-up to the Singapore-Indonesia Leaders’ Retreat in October. Specifically, Singaporean Minister for Trade and Industry Chan Chun Sing and Indonesian Coordinating Minister for Economic Affairs Darmin Nasution highlighted areas such as infrastructure, human capital development and the digital economy when they met in Jakarta on Monday, 16 September. The two also discussed bilateral economic initiatives in investment, manpower, transport, agri-business, tourism and special economic zones.

 Sources: The Straits Times

Malaysia

UMNO and PAS Ink Major Political Cooperation Pact (14 Sep)

Malaysia’s two biggest Malay-Muslim parties, the United Malays National Organisation (UMNO) and Parti Islam Se-Malaysia (PAS) signed a “National Cooperation” charter on Saturday, 14 September. Of the more than 10,000 people who attended the event at the Putra World Trade Centre, the majority were PAS supporters. The respective parties’ youth wings have claimed that they would champion the interests of non-Malays as well. However, PAS President Hadi Awang said that the pact was aimed at defending Malay-Muslims against those who would challenge the “position of Islam, the special rights of Malays and the royalty”. Observers are monitoring how the two parties will work together as they seek to unseat the Pakatan Harapan (PH) government in the 15^th General Election, and how this will affect racial ties in Malaysia.

Sources: The Straits Times, Malay Mail, The Straits Times, Channel NewsAsia

Amid Haze Crisis, Government Considers Transboundary Haze Act (13 Sep – Ongoing)

 Nearly 2,500 schools across Malaysia were closed on Thursday, 19 September, as the air quality in the country deteriorated to unhealthy levels. The closures affected at least 1.7 million students, and was the first mass closure in Kuala Lumpur since the crisis began. The Malaysian Health Ministry has also reported a jump in the number of respiratory problems such as asthma and conjunctivitis in affected areas. As of the evening of 24 September, the early arrival of the north-east monsoon resulted in a slight improvement in air quality.

Sources: Malay Mail, SCMP, Malay Mail

In formulating a long term measure to address the haze issue, the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) has indicated its intention to draft a Transboundary Haze Act to take action against Malaysian companies that have contributed to the haze. Prime Minister Dr Mahathir Mohamad had made a similar suggestion on 18 September, saying that Malaysia may have to “pass a law which will make [companies] responsible for fires in their property, even if it’s outside of Malaysia”. The proposal, which is awaiting the advice of the attorney-general, comes as Indonesia claims that some of the fires on its territory were on plantations operated by Malaysian-owned companies. A report by environmental group Greenpeace has also claimed that the Genting subsidiary PT Globalindo Agung Lestari was among the top 10 oil palm companies with the biggest burned areas between 2015 and 2018.

Sources: Malay Mail, Channel NewsAsia, The Straits Times

Drone Strikes on Saudi Oil Facilities Could Benefit Malaysia, Say Analysts (15 – 17 Sep)

 The drone strikes that disrupted over half of Saudi Arabia’s oil capacity (equivalent to 5% of daily global oil supply) are expected to benefit Malaysia overall. On one hand, Prime Minister Dr Mahathir noted that there would be upward pressure on global oil prices, which would also pressure Malaysia’s ceiling price for RON95 petrol (US$0.50 per litre). Yet as a net exporter of oil, Malaysia would stand to benefit from higher prices, especially since Budget 2019 was calculated on the assumption that oil would be US$70 a barrel. Each US$1 increase in oil prices is estimated to improve government revenues by US$71.8 million.

Sources: CNN (Overview of Drone Strike), The Straits Times, Malay Mail, Malay Mail

Succession issues: Dr M Says No Cabinet Reshuffle, and News About Anwar (17, 22 Sep)

 Prime Minister Dr Mahathir Mohamad said on Tuesday, 17 September that he does not intend to change his cabinet line-up while in office as it would create more problems than it would solve. He noted that he would have a “tough time” getting the new minister to adjust to the job, and also that specifying a “fixed period” to his own time in office would make it “difficult for [him] to work”. Dr Mahathir also told reporters on Friday, 20 September that he would announce the date of the transition to Parti Keadilan Rakyat (PKR) President Anwar Ibrahim “later” and that he would keep his promise.

For his part, Anwar told an interview with Bloomberg Television that he expects to take power around May 2020, though he did not think he should be “too petty about the exact month”. He offered strong comments about the ongoing haze crisis, criticising it as “ecological warfare” and questioning why the affected countries were not holding companies accountable. Anwar also urged the government to review the contract for the East Coast Rail Link (ECRL), which was mentioned in the trial of Former-Prime Minister Najib Razak as a project that had been offered to China in exchange for debt relief for the 1Malaysia Development Bhd (1MDB) fund. On this topic, Dr Mahathir said that the ECRL will continue as planned unless the local company involved can negotiate with their Chinese partner, or if the Malaysian Anti-Corruption Commission investigates and uncovers some wrongdoing.

Sources: Channel NewsAsia, The Straits Times, The Star, The Star

Government Announces 10-year Masterplan to Reform Power Industry (13 Sep)

 The Malaysian government has approved a 10-year masterplan to liberalise the domestic power industry known as Malaysian Electricity Supply Industry 2.0 (MESI 2.0). The plan, which will cover sectors such as generation, transmission and distribution, will also encourage and facilitate the supply of green energy in the country, and is expected to lower energy costs. The government, for instance, is planning to modify power purchasing agreements by removing fixed payments for the quantity of energy they supply and opening them to competition via market forces. The government is also expected to begin opening up the retail segment of the power industry in mid-2021, pending the installation of necessary infrastructure such as smart meters.

Sources: The Edge Markets MY, The Edge Markets MY

Myanmar

Fighting resumes as Tatmadaw and Northern Alliance talks stall (17 Sep – Ongoing)

 Fighting between the Tatmadaw and Northern Alliance has resumed in Shan and Rakhine states after the former announced it would not be extending its unilateral ceasefire, after the latter launched an artillery attack on a Tatmadaw base just after extending their own ceasefire. This follows an announcement that both parties had agreed in principle on a number of points of a draft bilateral ceasefire during peace talks held in Kengtung in Shan State. These talks had been regarded as promising due to the presence of Tatmadaw officials, who had been absent in many previous discussions. The talks followed on from several clashes across Myanmar’s northeast, which have disrupted Sino-Myanmar overland trade. The Northern Alliance is comprised of Kachin Independence Organization, Ta’ang National Liberation Army, Arakan Army and Myanmar National Democratic Alliance Army.

Sources: Irrawaddy, Irrawaddy, Irrawaddy, Irrawaddy, Myanmar Times, Irrawaddy

UN Fact-Finding Mission asserts Rohingya still face “threat of genocide” (16 Sep)

The fact-finding mission appointed by the United Nations Human Rights Council found that the roughly 600,000 Rohingya who remain in Myanmar continue to face the “threat of genocide”. Investigators noted that these Rohingya continued to live in “deplorable” conditions in Rakhine State, and are subject to severe restrictions on their movement. The fact-finding mission’s report was accompanied by an update by UN Special Rapporteur Yanghee Lee, who added that both the Tatmadaw and the Arakan Army were accused of indiscriminately using heavy artillery and landmines in civilian areas. The report additionally stated that the repatriation of those Rohingya already displaced previously was “impossible.”

Sources: Reuters, Frontier Myanmar, UNHRC

Senior General Min Aung Hlaing visits non-Buddhist religious sites (17 Sep)

 Tatmadaw Commander-in-Chief Senior General Min Aung Hlaing paid several visits and made charitable donations to a number of Muslim and Hindu religious sites. He was seen with an entourage of military officers and their families, donating cash and necessities to a Muslim hospital, a Hindu temple and several other sacred places around Yangon. In the week prior, the Senior General had made similar visits to Christian and Muslim religious organisations in Mandalay. Observers have noted that these visits are aimed at building political, religious and social cohesion, countering international accusations of the military’s persecution of minority religious groups. Myanmar’s forthcoming elections in 2020 have also been posited as a possible motivating factor for the visits, amidst other efforts by the military to soften its image.

Sources: Irrawaddy, Irrawaddy, Myanmar Times

Japan’s Sumitomo replaces Chinese corporation on Yangon Railway Station project (17 Sep)

 Japan’s Sumitomo Corporation will replace China’s Sino Great Wall Company in the Central Transport Development Consortium (CTDC) formed to upgrade Yangon Central Railway Station. This comes after revelations that Sino Great Wall suffered from severe and mounting debt issues, due to its wide portfolio of projects. Chinese authorities had reportedly investigated the company for failing to update investors about major projects and for undertaking transactions of dubious nature. Aside from Sino Great Wall, the CTDC was composed of local developer Mottama Holdings and Singapore’s Oxley Holdings, both of which remain within the consortium. The Yangon Central Railway Station upgrade project is priced at US$2.8 billion. Plans for the mixed development project will comprise of an integrated rail and mass transit, surrounded by 25.7 hectares of residential and business developments. These plans reportedly remain unchanged despite Sino Great Wall’s exit.

Sources: Irrawaddy, Myanmar Times

Singapore and Myanmar sign Bilateral Investment Treaty (24 Sep)

Myanmar’s Minister for Investment and Foreign Economic Relations U Thaung Tun and Singapore’s Minister for Trade and Industry Mr Chan Chun Sing signed a Bilateral Investment Treaty on behalf of their respective governments at the 7^th Joint Committee of Myanmar-Singapore Ministerial Meeting. The treaty allows Singapore companies to seek arbitration in case disputes arise relating to investment, and is intended to promote further investment from Singapore, which is already Myanmar’s largest source of foreign investment. Work on the treaty reportedly began nearly four years ago. Minister Chan Chun Sing also met Yangon Chief Minister Phyo Min Thein and Deputy Minister of Planning and Finance U Set Aung during his visit.

 Sources: Straits Times, Irrawaddy, MTI Press Release

Thailand

Thai exports fall 4% year-on-year in August (20 Sep)

 Thai exports fell 4% year-on-year in August – substantially more than the 2% initially forecast for the month. This follows an unexpected hike in exports in July, when exports rose by 4.28%. A major factor was rice exports, which fell 45% in August from the previous year – the biggest contraction in this category in about seven years. General drops in export quantities have been attributed to the seemingly uncontrollable strength of the Thai baht, which has appreciated 6.8% against the US dollar this year. Thai officials have also noted the effects of Sino-American trade tensions as a factor affecting overall trade in the region. The fall in exports comes despite a spike in gold shipments, which rose 378% year-on-year in August. Had this not been taken into account, the fall in exports would have been registered at 9.8%. Thai officials have stated that should these circumstances persist, it will be difficult to reach the Commerce ministry’s export growth target of 3%.

Sources: Reuters, Bangkok Post

Questions raised regarding qualifications and ethics of key PPRP minister (13 Sep – 17 Sep)

 The qualifications and ethics of deputy agriculture and cooperatives minister Thammanat Prompao have come into question after it was revealed that he had been held under drug trafficking charges in Australia and that his educational qualifications may have been falsified. PM Prayut reiterated his endorsement of Mr Thammanat after the latter made a statement clarifying that he had never formally been charged in Australia. An additional allegation made on social media asserts that Mr Thammanat’s PhD, acquired from a university in California, was fabricated. Deputy Prime Minister Wissanu Krea-ngam has since stated that the problematic qualities of Mr Thammanat’s higher qualifications were irrelevant, given that Thailand’s constitution only requires cabinet ministers to hold Bachelor’s degrees. DPM Wissanu did however state that the fabrication of higher qualifications was an ‘ethics’ issue that warranted investigation. Mr Thammanat is a key figure in the Palang Pracharat Party, and has played a key part in keeping smaller parties in line.

Sources: Bangkok Post, Thai PBS, Thai PBS

FFP Leader faces fresh fire over potentially breaking campaign finance rules (21 Sep)

The embattled leader of the Opposition Future Forward Party (FFP) Thanathorn Juangroongruangkit faces fresh allegations regarding having potentially broken campaign financing rules by extending loans totalling 191m Baht (US$6.26m) to his own party. These charges are not new, but have recently regained relevance after activist Srisuwan Janya presented further evidence on the case and petitioned the Election Commission to rule on the legality of Mr Thanathorn’s actions. Mr Thanathorn is accused of violating Section 62 of the organic law on political parties, which prohibits donations to political parties exceeding 10m Baht in value (US$328k). Deputy Prime Minister Wissanu Krea-ngam, who is the government’s legal expert, has since stated that Mr Thanathorn’s actions are not explicitly covered by Section 62, but that the final decision rests with the Election Commission. These developments followed the revelation that Mr Thanathorn was the richest MP in parliament, with a personal net worth of 5.6bn Baht (US$183.7m).

Sources: Bangkok Post, Bangkok Post, Bangkok Post, Bangkok Post, Thai PBS

Constitutional Court clarifies PM Prayut’s status prior to election (18 Sep)

 Thailand’s Constitutional Court has ruled that PM Prayut was not a state official while he served as chair of the National Council on Peace and Order (NCPO), and therefore did not violate regulations prohibiting Thai Prime Ministers from simultaneously holding other state positions. The court clarified that the position of NCPO chair was an interim one which did not fall under the purview of any formal state agencies. As it was the result of the administrative power seizure, it could not be used as grounds to end the PM Prayut’s premiership. This apparent contravention of Sections 170 (4) and 98 (15) of Thailand’s Constitution was raised by around 110 Opposition parliamentarians, and a petition was forwarded to the Constitutional Court by House Speaker Chuan Leekpai in July.

Sources: Bangkok Post, Thai PBS

PM Prayut faces no-confidence motion after insubstantial debate on oath-taking (20 Sep)

 PM Prayut Chan-o-cha faces a no-confidence motion levelled against his government for ethical violations related to his failure to fully recite his oath of allegiance. The motion, and an accompanying petition to be forwarded to the National Anti-Corruption Commission (NACC), was submitted by Wan Muhammad Nor Matha, leader of the opposition Prachachat Party. This followed a debate in which the secretaries-general of opposition heavyweights Pheu Thai and Future Forward Party (FFP) demanded that PM Prayut resign for his failure to recite his full oath. While present throughout the debate that followed, PM Prayut did not address the issue of the oath at all during his comments, which focused on budgetary matters. The FFP noted after the debate that it was planning to revisit the issue over the coming three months. PM Prayut has since challenged the opposition to follow through on its motion, and the petition to the NACC, claiming he respects the justice process and would not avoid scrutiny

Sources: Bangkok Post, Bangkok Post, Bangkok Post, Thai PBS, Thai PBS