Indonesia

Jokowi Pushes Back Against Constitution Amendment Proposals (2 Dec – Ongoing)

President Joko Widodo “Jokowi” expressed his opposition towards proposals to amend the 1945 constitution on Monday, 2 December. The proposals were based on a Suharto-era framework called the Broad Guidelines of State Policy (GBHN), and included bringing back indirect elections (i.e. having the parliament elect the president instead of the electorate) and relaxing term limits. The amendments not only have the support of Nahdlatul Ulama, the country’s biggest Islamic organisation, but also parties such as Jokowi’s own, the Indonesian Democratic Party for Struggle (PDI-P). Jokowi, however, emphatically described the proposal to increase presidential term limits as a “slap in the face”, and said that he would not support them.

 Sources: The Business Times, Jakarta Globe, The Jakarta Post

Big Plans in Store to Reform Taxes, Boost Tax Revenue (22 Nov – Ongoing)

Finance Minister Sri Mulyani Indrawati has told reporters that an upcoming omnibus law bill will introduce revisions to the tax code, income tax law, value-added tax law and regional tax and retribution law. These changes include:

• Corporate Income Tax: To be cut from 25% currently to 22% in 2021-2022, and to 20% after 2023. There will also be a rebate of 3% for five years for companies that go public for the first time during or after 2021.

• Taxes on Dividends: The tax office currently takes 10% on any dividends, but corporate and individual shareholder will no longer be required to pay this under the new laws.

• Netflix Tax: Digital companies such as Netflix or Spotify will be made to collect, pay and report value-added taxes to the Indonesian tax office, even if they do not have a subsidiary registered in Indonesia.

• Taxes for Expatriates: Sri Mulyani said that anyone receiving dividends from abroad will not need to pay taxes on them as long as they invest the dividends in Indonesia. Indonesians who have been living abroad for more than six months will also not have to pay income tax on their overseas earnings, while expatriates living in Indonesia for more than six months will only need to pay income tax on earnings generated within the country.

 Indonesia’s tax to GDP ratio (10.7%) has been among the lowest in the region, with Malaysia (13.1%) and Thailand (14.8%) scoring higher on the World Bank’s ranking. Therefore, the Finance Ministry’s director general of taxation, Suryo Utomo, told reporters that the tax office is seeking to expand the country’s tax base by 13.5% to US$132.5 billion in 2020.

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

Indonesia to Replace Portions of Civil Service with AI, Says Jokowi (28 Nov)

President Jokowi ordered government agencies on Thursday, 28 November, to replace certain portions of the civil service with artificial intelligence (AI) in 2020. This policy was ostensibly part of his efforts to reduce red tape and incentivise investments into Indonesia, and his government had already mentioned plans to streamline the five-tier structure of the civil service. However, the announcement came to the surprise of some and the amusement of many. While Jokowi did not specify any details about how AI would be utilised, Coordinating Economic Minister Airlangga Hartarto said that potential application areas include the registration process for building permits.

 Sources: Channel NewsAsia, The Jakarta Post

After a Tame 212 Reunion, Location Hit by Smoke Grenade Blast (2 – 3 Dec)

The third anniversary of the “212 Movement” proceeded peacefully on Monday, 2 December. The event, which commemorated the December 2016 rallies that ousted Former-Jakarta governor Basuki Tjahaja Purnama, or “Ahok”, for allegedly insulting Islam, was attended by thousands of people. While Defence Minister Prabowo Subianto was the patron of the movement during the previous anniversary, his rapprochement with Jokowi led 212 supporters to distance themselves from him. Instead, this year’s rally featured Jakarta Governor Anies Baswedan, who told the crowd that “national unity” based on the universal application of “social justice” is what makes Indonesia great. Other leaders, including controversial Islamic Defenders Front (FPI) leader Rizieq Shihab who attended the rally via video screen, made speeches condemning the government.

 Sources: Jakarta Globe, The Jakarta Post Premium

The following day, an explosion injured at least two military personnel around the National Monument park, the same venue where the rally was held. The blast was suspected to be the result of a smoke grenade, and police are currently investigating the incident further. In the meantime, the State Palace said that it would not be organising additional security measures for Jokowi as his security detail’s level of readiness was sufficient to deal with such incidents.

 Sources: SCMP, The Jakarta Post

EU Launches WTO Complaint Against Indonesia’s Nickel Ore Export Curbs (22 Nov – Ongoing)

The European Union (EU) launched a complaint at the World Trade Organisation (WTO) against Indonesia on Friday, 22 November, over the latter’s plans to limit the export of raw materials such as nickel. Indonesia is the world’s largest miner of nickel ore, and their two-year ban starting in 2020 was seen by EU leaders as unfairly limiting their own access to the ore. Furthermore, the EU leaders expressed concerns that Indonesia’s efforts to boost its own stainless steel sector would pose a significant challenge for the EU’s less-polluting but more expensive steel sector.

Indonesia could respond to the EU’s complaint letter by asking to hold a consultation, which would be held in the next 30 days. Alternatively, the EU may ask the WTO to open a dispute panel, which would take at least a year to provide a ruling on the case.

 Sources: Reuters, The Jakarta Post Premium

Malaysia

After 19 Months, A Cabinet Reshuffle is in the Cards (21 Nov – Ongoing)

Prime Minister Dr Mahathir Mohamad told reporters on Thursday, 21 November that a cabinet reshuffle is set to happen “soon”. The announcement came days after the Pakatan Harapan (PH) government suffered its worst by-election defeat in Tanjung Piai on 16 November. Dr Mahathir was noncommittal about the date for the change, saying that “it may be before the Apec meeting” in late 2020, but that it should not be so “radical” as to affect the planning for the meeting.

Speculation is rising in the meantime over which ministers will be replaced. Partai Islam Se-Malaysia (PAS) President Ibrahim Tuan Man said that Finance Minister Lim Guan Eng should be the first to go due to the latter’s habit of blaming the previous Barisan Naisonal (BN) government for Malaysia’s financial woes. However, government leaders such as Primary Industries Minister Teresa Kok have declined to speculate about the line-up. Parti Keadilan Rakyat (PKR) President Anwar Ibrahim also said that he has no intention of accepting a cabinet position during a reshuffle, holding out instead for the Prime Ministership.

Sources: The Star, The Star, The Straits Times

PKR’s Internal Crisis Rages On as Youth Congress Fallout Deepens (21 Nov – Ongoing)

PKR experienced a tumultuous three weeks amid a series of sackings, absentee votes and general infighting. The key events are as follows:

• Sarawak: The problems started after Economic Affairs Minister and PKR Deputy President Azmin Ali was dis-invited from officiating a Youth Congress on 12 November. In response, 21 of 25 youth leaders signed a statement condemning the move, while Sarawak leaders threatened to cancel their upcoming state convention. While the convention went ahead on 23 November, State Chairman Baru Bian (An Azmin ally) and 18 of the 31 division chiefs were absent.

• MACC Sackings: On 24 November, the PKR disciplinary board sacked Bera division chief Zakaria Abdul Hamid (The former political secretary to Baru Bian) and Ismail Dulhadi following a letter from the anti-corruption commission (MACC) that accused them of graft during the 2018 party elections. Zakaria protested his dismissal, and though PKR leaders have said that he can file an appeal with them, Anwar has refused to apologise for his decision to remove Zakaria.

• Trouble in Melaka: On 25 November, the absence of two Melaka assemblymen (Ginie Lim and Muhammad Jailani Khamis) from a key vote led to Melaka PKR Chairman Halim Bachik (An Anwar ally) failing in his bid to be nominated as a federal senator. The two subsequently apologised to Anwar for their absence.

• More Trouble from PKR Youth: On 29 November, PKR Youth permanent chairman Muhamad Mizan Adli Mohd Nor and Deputy Ramly Ahmad were sacked from their leadership positions. PKR leadership said that the reasons behind the dismissal included electoral inconsistencies from the 2018 party elections and both Mizan and Ramly being above the age of eligibility for the posts (35). Nonetheless, the move was widely seen as a pre-emptive strike to prevent the two, who are associated with Azmin, from unseating Youth chief Akmal Nasir, an Anwar supporter. Adding to the unrest, PKR Youth leaders from Lembah Pantai called for a no-confidence vote against Anwar on Sunday, 1 December, only to say that it was “just a suggestion” on Tuesday when it failed to gain traction.

As developments continue to unfold, the next big development on the horizon is PKR’s annual congress, due to be held from Thursday (5 December) to Sunday (8 December) in Melaka. Rumours abounded that Azmin was planning a parallel party congress in defiance of Anwar, and the Malay Mail reported that it would be held from 7-8 December at the Renaissance Hotel in Kuala Lumpur.

Update: After last-minute talks on the evening of Wednesday, 4 December, both Azmin and Anwar agreed to work together to make the Melaka Congress a success. It was also decided that Azmin would launch both the Women’s and the Youth Congress on Thursday, 5 December.

Sources: The Straits Times, New Straits Times, Free Malaysia Today, The Star, Malay Mail, Malay Mail, Malay Mail, The Edge Markets MY

Najib Takes the Stand in the US$10 million SRC Trial (3 Dec)

Former-Prime Minister Najib Razak took the witness stand on Tuesday, 3 December to deliver his testimony on the 1Malaysia Development Berhad (1MDB)-related SRC International case. Najib had pleaded not guilty to the three charges of criminal breach of trust, three on money laundering and one on abuse of power in the SRC case. Nonetheless, he was ordered in November to present his defence after a judge ruled that the prosecution had successfully established a case against him. For his part, Najib asserts that he had been manipulated by rogue financier Jho Low, and was a victim of 1MDB as well. He is expected to take about four days to deliver his 243-page testimony, and will be cross-examined by the prosecution afterwards.

Sources: The Edge Markets MY, Al Jazeera, The Guardian

For Malaysia, Chinese FDI Falls While US Inflows Soar Amid Trade Tensions (29 Nov)

Data from the Malaysian Investment Development Authority (MIDA) showed that foreign direct investment (FDI) from China had halved to US$1.7 billion year-on-year during the first nine months of 2019. In comparison, US investments soared sevenfold to US$5.9 billion, while Japanese investments jumped fourfold to US$2.8 billion. As a result, China slipped from its position as Malaysia’s biggest investor to third place behind the United States and Japan. Total approved FDI into Malaysia rose 6.5% to US$15.9 billion, with the biggest investments going into the electrical and electronics industry.

Sources: Malay Mail

Malaysia Renews Calls for a Third Bridge with Singapore (25 Nov)

Home Minister Muhyiddin Yassin told the Johor state assembly on Monday, 25 November, that a third bridge linking Johor and Singapore will be necessary to tackle congestion as the two existing bridges reach their capacity. Muhyiddin said that he had already informed the federal government about the need for the bridge, and initially promised to ensure the construction is started if the state government supports it as well. However, he has since put off the decision on building the bridge until a study on ways to overcome congestion at the existing links is completed. This, he said, could take about nine months.

Sources: Malay Mail, Today Online, The Star

Myanmar

Aung San Suu Kyi to lead Myanmar’s defence of ICJ genocide charge (20 Nov)

The office of Myanmar’s State Counsellor Aung San Suu Kyi announced that she will personally be travelling to The Hague to contest allegations of genocide brought against Myanmar at the International Court of Justice (ICJ). This announcement came shortly after the suit was lodged at the ICJ by The Gambia, with the support of the Organisation of Islamic Countries. The Tatmadaw has since announced that it supported her decision, and would cooperate to address the allegations brought against Myanmar. Myanmar’s government has also set up a special unit on international criminal justice to strengthen legal expertise on international issues, and has brought in both civilian and military officers to staff it. Yangon has seen public rallies in support of the move, and representatives of two major Ethnic Armed Organisations, the United Wa State Army and the National Democratic Alliance Army, have made statements expressing their support as well.

 Sources: Guardian, Channel NewsAsia, Al Jazeera, Irrawaddy, AFP, Irrawaddy

Myanmar and South Korea sign four agreements at Mekong-ROK summit (29 Nov)

Myanmar and South Korea signed four Memorandums of Understanding with South Korea at the inaugural Mekong-Republic of Korea Summit. The agreements pertained to cooperation on fisheries; technical and vocational training; the environment; and the development of the digital economy, higher education, smart cities and connectivity. Myanmar also signed an additional MOU on development cooperation with South Korea, alongside Cambodia, Laos, Vietnam and the Philippines. The Mekong-Republic of Korea Summit was hosted in Busan and brought high-level officials from the Mekong countries and South Korea. This included Myanmar’s State Counsellor Aung San Suu Kyi and the President of South Korea, Moon Jae-in. Myanmar and South Korea had previously signed 10 MOUs during a visit by the South Korean President to Myanmar earlier in the year.

 Sources: Irrawaddy, Forbes, Myanmar Times

Myanmar issues full insurance licenses to approved insurers (28 Nov)

Myanmar’s Financial Regulatory Department formally awarded licenses to five foreign insurers and six joint ventures, permitting them to issue life insurance policies through their fully-owned subsidiaries. The five insurers who have been awarded these licenses are Prudential, Dai-ichi Life, AIA, Chubb and Manulife. Joint ventures between AYA Myanmar General Insurance and Sompo Japan Nipponkoa Insurance, Grand Guardian General Insurance and Tokio Marine & Michido Fire Insurance, and IKBZ Insurance and Mitsui Sumitomo Insurance were also awarded licenses to issue non-life insurance. Joint ventures between Capital Life Insurance and Taiyo Life Insurance, Citizen Business Insurance and Thai Life Insurance, and Grand Guardian Life Insurance and Nippon Life Insurance were issued licenses to issue life insurance. This development comes approximately six months after provisional approvals were granted.

 Sources: Myanmar Times, Myanmar Times, Insurance Business Magazine, Business Times

US asserts that Myanmar may have chemical weapons stockpile (26 Nov)

A representative of the United States has asserted that Myanmar may be in possession of a chemical weapons stockpile at a “historic” facility where mustard gas had previously been produced in the 1980s. The comment was made at an annual meeting of the Organisation for the Prohibition of Chemical Weapons (OPCW). The representative, Deputy Assistant Secretary of State Thomas DiNanno, stated that evidence was compelling enough that the United States was certifying that Myanmar was in non-compliance with the Chemical Weapons Convention (CWC) banning the production, storage and use of chemical weapons. Myanmar officially joined the convention in 2015 as its 191^st signatory state. The Tatmadaw has responded by denying these allegations, instead claiming that Myanmar has not possessed any program relation to chemical weapons either before or after the country’s ratification of the CWC.

 Sources: Frontier Myanmar, Irrawaddy

Significant cache of mostly Chinese-made weaponry confiscated from Ethnic groups (25 Nov)

The Tatmadaw has seized a large cache of Chinese-made weapons in an area controlled by the Ta’ang National Liberation Army, in Myanmar’s northern Shan State. Significant quantities of small arms, several rocket launchers and even a shoulder-fired surface-to-air missile were recovered alongside 77 bags of equipment and explosives in Homein village in Namhsan township. Tatmadaw representatives have stated that the weapons were mostly made in China. This is the largest such seizure in recent years, with investigators questioning how local groups acquired the weaponry – a single example of which can cost up to US$70,000. The Tatmadaw has in recent years expressed its unhappiness with China’s close relationship with ethnic rebels along the China-Myanmar border. Chinese arms manufacturers reportedly provide ethnic armies such as the 30,000-strong United Wa State Army with technical support, ammunition and maintenance on sophisticated weapons systems. The UWSA in turn provides smaller groups with support.

 Sources: Irrawaddy, Myanmar Times, Irrawaddy

Thailand

Governing coalition shaken after Section 44 Panel defeat (29 Nov)

Thailand’s governing coalition has suffered a setback recently with the unexpected passage of a motion brought forward by the opposition to establish an ad hoc panel to assess the effects of pre-election junta orders, and executive orders issued under Section 44 of the interim constitution. 236 MPs voted in support of the opposition motion, with 231 in opposition. Of the MPs who voted in support, six were from the nominally coalition-aligned Democrats party. Opposition MPs staged a walkout after the government indicated it would exercise its right to seek an immediate recount, and have continued to refuse to countenance a recount on the issue. Meanwhile, the Democrat party MPs who voted in favour of the motion have maintained their right to vote independently, in the face of criticism from other coalition members. Suggestions of a rift within the ruling coalition because of this issue have been denied, but coalition party leaders have convened a meeting to strengthen ties between key members of their parties.

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

Cabinet approves further stimulus measures (27 Nov)

Thailand’s cabinet announced plans to roll out three new stimulus package in an attempt to boost the country’s growth rate. This stimulus is comprised of a package of three separate components valued at approximately 33bn Baht (US$1.1bn). The first package is aimed at helping real estate developers sell surplus units, through the provision of a 50,000 Baht (US$1650) ‘giveaway’ down payment incentive for 100,000 buyers whose monthly income does not exceed 100,000 Baht (US$3300). The second is aimed at farmers, and will provide money per hectare of owned land to around 4.57m rural households. The third package is aimed at boosting the grassroots economy, and is further divided into a village fund to encourage infrastructure and capacity development, a programme to provide accessible credit to village and urban communities and a limited debt moratorium. These measures are expected to inject approximately 144bn Baht into the Thai economy.

Sources: Thai PBS World, Thailand Business News, Bangkok Post

Fighting on Thai-Myanmar border causes refugee inflow into Thailand (27 Nov-3 Dec)

Fighting between Myanmar’s Army, the Tatmadaw, and the insurgent Mon National Liberation Army (MNLA) has prompted an influx of refugees fleeing the fighting. The fighting broke out at the Three Pagodas Pass on the Thai Border due to a miscommunication between the two forces when Tatmadaw troops attempted to enforce border control checks in MNLA territory. Around a thousand ethnic Mon fled their homes across the Thai border amidst the fighting, to shelter at Wat Song Kalia and Wat Tao Than in tambon Nong Lu of Sangkhla Buri district in Southwest Thailand. Fighting has since calmed, however, and both Tatmadaw and MNLA forces are standing down. Arrangements are being made to facilitate a safe return for the refugees still in Thailand. Border trade has also resumed after having stalled due to Thai troops closing the Thai-Myanmar border during the fighting.

Sources: Bangkok Post, Irrawaddy, Bangkok Post, Irrawaddy

Forest Department to file charges against PPRP MP Pareena (2 Dec)

Thailand’s Royal Forest Department (RFD) has announced it will be filing three charges against Palang Pracharat MP for Ratchaburi, Ms Pareena Kraikupt. The RFD alleges that Ms Pareena owns a poultry farm which encroaches on 7.376 hectares of national forest reserves. This follows a high-profile and controversial investigation in which it was asserted that Ms Pareena’s political affiliations had insulated her and her family from punitive action. Representatives of the RFD have since stated that it took action swiftly, fairly and in accordance with the letter of the law. Ms Pareena will be charged with illegal forest encroachment, illegal occupation and utilization of national forest reserves, and illegal construction in a national forest reserve. The charges will be filed with officials of the Division for the Suppression of Activities Regarding Natural Resources and the Environment. Ms Pareena faces substantial fines, and possible jail time for each charge.

Sources: Thai PBS News, Bangkok Post

Thanathorn resigns from parliamentary roles after questioning Defence expenditure (30 Nov)

Future Forward Party leader Thanathorn Juangroongruangkit has resigned as a member of the House budget scrutiny committee, claiming his presence there is not welcome. He stated that he had made his decision on November 20^th, when he was disqualified as an MP by the Constitutional Court. This announcement came shortly after Mr Thanathorn posed an unprecedented series of questions to the committee about the Ministry of Defence’s sizeable 18.6bn Baht (US$614.1m) off-budget account. Mr Thanathorn also questioned the wealth of a number of generals, who were members of the now-dissolved National Legislative Assembly. Deputy Prime Minister Prawit Wongsuwon later replied stating that off-budget money was used to provide welfare benefits for troops, low-income state employees and the general public, and that disbursement was transparent and scrutinized adequately. Mr Thanathorn has stated that he intends to work “shoulder to shoulder” with common people on various divisive societal issues.

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