Back up, again

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Coal giants Bukit Asam, Adaro book profit falls on weak commodity prices

first_imgSuch miners potentially face another challenging period in 2020 as the Southeast Asian country officially extended in January its DMO policy for another year and as Chinese factories remained closed for a third consecutive month due to the novel coronavirus epidemic. China’s industry accounts for 70 percent of electricity consumption in the world’s second-largest economy.“Weaker power demand and weaker industrial activity [in China] inevitably impacted both domestic production and consumption of thermal coal,” wrote market analyst Gavin Thompson, energy vice chairman for Asia Pacific at consultancy Wood Mackenzie, in a media newsletter on Feb. 4.“Imports are also expected to slow, with reports of Indonesian producers already being asked to delay loadings. The effect on prices though is likely to be muted; prices fell so much through 2019 that globally many producers are already operating at negative margins.”Read also: Coal miner Bukit Asam to invest Rp 4t this year, mostly on infrastructureBukit Asam’s revenues increased 2.9 percent yoy to Rp 21.79 trillion in 2019. The increase was, however, offset by a sharper 12.4 percent increase in production costs to Rp 14.18 trillion.Bukit Asam stocks, traded on the Indonesia Stock Exchange (IDX) as PTBA, rose 4.22 percent on Wednesday despite reports of a decline in the company’s profit, higher than the increase in the benchmark Jakarta Composite Index (JCI), which gained 2.38 percent.Bukit Asam president director Arviyan Arifin said the company would aim to be more efficient in all its activities to reduce costs and improve profit margin. He also hoped that prices would also improve in the global market despite the coronavirus outbreak. “We are optimistic that in 2020, hopefully, prices will not be as bad as in 2019,” he said.Furthermore, the coal miner has mitigated losses from a shrinking Chinese market since 2017 by expanding its exports to India, Southeast Asia and Taiwan, among other new markets, said Adib.Meanwhile, Adaro’s financial report shows that sales volume increased 9 percent yoy to 59.19 million tons in 2019. Yet, the company’s revenue dropped 4 percent yoy to $3.46 billion due to falling commodity prices. The miner’s operational costs also rose 3 percent yoy to $2.49 billion.Adaro stocks, traded on the Indonesian bourse as ADRO, rose 5.7 percent on Wednesday, above the JCI’s 2.38 percent.Topics : “We expect 2020 to be a challenging year and we will continue focusing on improving operational performance, mitigating costs and improving efficiency,” said Adaro chief executive officer Garibaldi Thohir in a statement on Wednesday.Read also: Indonesia tightens grip on nickel and coal exportsIndonesia’s coal price reference (HBA) fell 28.2 percent over the course of last year to $66.3 per ton in December 2019 due to declining coal demand in China, Europe and the United States.Indonesian miners say prices were also affected by the government’s domestic market obligation (DMO) policy that required miners to sell a quarter of their production domestically at $70 per ton, which was below market prices in the first half of 2019. A fall in global coal prices as a result of lower demand from main coal buyer China hit the bottom lines of mining heavyweights PT Bukit Asam and PT Adaro Energy in 2019.Bukit Asam’s profit slumped 19.1 percent year-on-year (yoy) to Rp 4.06 trillion (US$286.78 million) in 2019, while Adaro’s profit slumped 3.2 percent yoy to $404.19 million in the same year. The companies’ profits declined as lower commodity prices had offset their higher sales volumes, which had grown 13 percent and 9 percent, respectively.“We, in the coal industry, are very sensitive to prices,” said Bukit Asam commerce director Adib Ubaidillah at a press conference in Jakarta on Wednesday (4/3).last_img read more

Clash of tech titans: Zuckerberg praises coronavirus lockdowns; Musk sees ‘fascism’

first_imgSilicon Valley billionaires Elon Musk and Mark Zuckerberg offered dueling views on lockdown measures designed to slow the spread of the coronavirus on Wednesday, with Facebook’s Zuckerberg endorsing the measures while Tesla’s Musk condemned them as anti-democratic.Musk, who has often made outspoken and even inflammatory comments on conference calls and on Twitter, said in comments to analysts on Tesla Inc’s earnings call that it was “fascist” to say people cannot leave their homes.”This is not democratic, this is not freedom. Give people back their goddamn freedom,” Musk said. Zuckerberg, on the other hand, in comments on Facebook’s own earnings calls, expressed concerns about easing lockdown measure and said the economic fallout from the pandemic would last longer than people are currently anticipating.”I worry that reopening certain places too quickly before infection rates have been reduced to very minimal levels will almost guarantee future outbreaks and worse longer-term health and economic outcomes,” he said.Both companies are based in the San Francisco Bay area, which was out front in trying to slow the virus’ spread, with the region’s seven counties issuing a joint shelter-in-place order before California issued a statewide order.Electric carmaker Tesla and social media network Facebook have had different experiences under the lockdown. Tesla had initially resisted efforts by California authorities to shut its plant in the Bay Area under the lockdown, until agreeing on March 19 to suspend production. Even so, Tesla on Wednesday reported its third profitable quarter in a row. Facebook, the world’s largest social network, on Wednesday said usage rose during the first quarter amid the widespread lockdowns, although ad revenue plunged in March.Musk did not mince words in criticizing the lockdowns.”So the extension of the shelter-in-place or, frankly, I would call it, forcibly imprisoning people in their homes against all their constitutional rights, in my opinion, breaking people’s freedoms in ways that are horrible and wrong and not why people came to America or built this country,” Musk said, swearing to underscore his point.”It will cause great harm, not just to Tesla, but to any companies. And while Tesla will weather the storm, there are many small companies that will not,” he said.Zuckerberg and Musk, who is also chief executive of rocket company SpaceX, have had differences in the past. In 2017, a war of words broke out between the duo over whether robots will become smart enough to kill their human creators.”I’ve talked to Mark about this. His understanding of the subject is limited.” Musk tweeted at the time about Zuckerberg, who downplayed Musk’s warnings about the danger of artificial intelligence.In May 2018, Musk made waves on another earnings call when he refused to analysts’ questions, saying that “boring, bonehead questions are not cool.” He later apologized for his remarks.center_img Topics :last_img read more

Islamic State exploits virus, political crisis to boost Iraq attacks

first_imgThey have spiked since early April as jihadists plant explosives, fire on police patrols and launch mortars and rockets at villages, local security sources told AFP.”Combat operations have reached a level we haven’t seen in a while,” said Iraqi security expert Hisham al-Hashemi.He said IS fighters were using abandoned villages to edge towards urban areas, looking to re-establish funding mechanisms, smuggling routes and hideouts while targeting local infrastructure and officials to cause panic.Days before early Saturday’s ambush — which was multi-pronged and took place in Salahaddin province — the jihadists claimed a suicide attack that wounded four people outside an intelligence headquarters in Kirkuk, a restive northern province. An intelligence officer there said IS had tripled its attacks in Kirkuk in April compared to March.In the rural Diyala region northeast of Baghdad, daily attacks on agricultural fields have terrified farmers and recalled memories of IS’ steady build-up across Iraq.Adnan Ghadban, a tribal sheikh in the city of Baquba, said two of his relatives were shot in their fields last week by IS fighters. They both remained in a critical condition, he added.”What’s happening now is taking us back to 2014,” he said, referring to the year when IS seized swathes of the country in a lightning offensive. Topics : Islamic State group remnants in Iraq are exploiting a coronavirus lockdown, coalition troop withdrawals and simmering political disputes to ramp up deadly attacks, according to analysts and intelligence officials.The bloodiest so far was an ambush early Saturday that killed 10 Iraqi fighters north of Baghdad that observers say demonstrated a new escalation in the jihadist group’s tactics but one that could still be contained. Iraq declared IS defeated in late 2017 but sleeper cells have survived in remote northern and western areas, where security gaps mean the group wages occasional attacks.center_img ‘Crude, elementary’ Still, analysts and observers said the recent wave of IS attacks did not mean the group could once again threaten cities like it did in 2014. “IS will not be able to return to its former size,” said Abu Raghif, meaning the UK-sized “caliphate” that the jihadists declared across swathes of Iraq and Syria.A senior official in the US-led coalition told AFP it had noted “successful low-level attacks” by IS in recent weeks but did not consider them a “substantial uptick”.”It’s not just the number of the attacks but what’s the quality of the attack? Is it complex? What equipment or tactics were used? Most of what we’ve seen has been crude and elementary,” the official said. Sam Heller, an independent analyst focused on jihadist groups, said the recent shift hardly compares to the peak of IS activity around the creation of the “caliphate”.Instead, they were “seemingly indicative of the group’s more aggressive posture, not necessarily new and impressive capabilities,” he wrote.   ‘Opportunistic increase’ In part, the escalation may be linked to security units being redeployed to enforce a nationwide lockdown aimed at curbing the spread of the novel coronavirus, which has infected more than 2,000 people and killed over 90 in Iraq. “These fighters took advantage of the fact that security forces were busy with imposing the curfew and began to move around much more freely,” Ghadban told AFP. The jihadists could also be exploiting the political deadlock in Baghdad, where top leaders are focused on tense talks over a new government, the consequences of a collapse in global oil prices and budget disputes with autonomous Kurdish authorities.  “IS fighters have sensors on the political situation. Every time it deteriorates, they opportunistically increase their activity,” said Fadel Abu Raghif, an Iraqi analyst focused on political and security affairs. Abu Raghif and the Kirkuk intelligence officer said a significant troop drawdown by the 7,500-strong US-led coalition had also paved the way for IS to boost attacks. The international alliance deployed in Iraq in 2014 to help local troops defeat the jihadists by providing air strikes, advice, surveillance and combat support. Seeing that the threat from IS had “shifted”, the coalition has pulled out of five Iraqi bases in recent weeks, including in Kirkuk and IS’ former stronghold of Mosul.It also redeployed hundreds of trainers out of the country indefinitely, as Iraqi security forces had halted training programs to limit possible COVID-19 transmissions.Despite years of training, the US Defense Department assessed this year that Iraqi troops were still unable to adequately collect and use intelligence in anti-IS raids on their own, or maintain operations in tough terrain without coalition help.”Without a US troop presence in Iraq, IS would likely resurge,” the Pentagon’s inspector general wrote.last_img read more

BI, government to share debt burden to finance business rescue program

first_imgHe gave an example of BI buying 10-year bonds with a yield of 4.9 percent, or similar to BIs 12-month term-repo rate, which is below the 8.08 percent offered in auctions.“So BI is sharing the burden by about 3.2 percentage points,” Nanang said as quoted by Reuters, stressing that this meant BI would be able to absorb excess liquidity in the future in case of inflationary pressures.BI made its first direct purchase of government bonds in an auction in late April, after the government relaxed rules to help finance the government’s widening budget deficit. The central bank was previously prohibited from buying government bonds in the primary market and could only buy the debt papers in the secondary market.There have been concerns that the policy could induce inflationary pressures in the economy as the central bank provides funding to the government to rescue businesses and contain COVID-19. However, the decision was made in consideration of the global market rout that has resulted in foreign investors fleeing Indonesia.Read also: Government issues regulation on economic recovery program, focuses on SOEs, MSMEsForeign investors sold Indonesian assets worth Rp 145 trillion in the first quarter, higher than the capital outflows recorded during the 2008 global financial crisis in 2008 and the 2013 “taper tantrum” combined.“I think this needs to be conducted extremely prudently and carefully. This is an extraordinary situation in which we need funds to contain COVID-19 while there are pressures on bonds, especially given global market conditions,” Bank Central Asia (BCA) economist David Sumual said.“The dilemma of BI in the primary market is how the coupon rate will be [priced]. The funds will be coming from the same pocket, and therefore the market rate will not be applicable.”The policy of conducting private placement between the government and BI will allow breathing room for the state budget in financing business rescue programs, added David.The funds are expected to provide a cushion to businesses battered by the COVID-19 pandemic, many of which have resorted to layoffs and furloughs to sustain operations, with some completely closing down already.Read also: Rescuing local businessesNearly half of the budget for the business-rescue program, at more than Rp 152 trillion, has been allocated for SOEs, according to a Finance Ministry document. Flag carrier Garuda Indonesia will receive a government investment for working capital worth Rp 8.5 trillion, steelmaker PT Krakatau Steel will get Rp 3 trillion and the State Logistics Agency (Bulog) Rp 13 trillion.Febrio declined to provide details or to confirm how much funds the government would provide SOEs, saying the policy would need first to be approved by President Joko “Jokowi” Widodo in a Cabinet meeting.He added that businesses would find it hard to sustain operations as regions around the archipelago implemented large-scale social restrictions to slow the spread of the virus.“Data suggest we’re heading for an even worse period than the first quarter, very likely to be negative growth,” said Febrio. Indonesia’s economy may contract in the second quarter this year after growing 2.97 percent in the first quarter, the lowest level in 19 years. The government’s worst-case scenario projects a 0.4 percent GDP contraction this year.Topics : The government has allocated Rp 318 trillion (US$21.28 billion) for the so-called economic recovery program, according to a Finance Ministry document presented in a meeting with lawmakers recently, a copy of which was obtained by The Jakarta Post. The rescue program will include capital injections into state-owned enterprises (SOEs) and loan subsidies for micro, small and medium businesses.To finance the budget needs, the government will issue debt papers that can be bought directly by BI with coupon rates and other technical mechanisms to be decided later. The BI governor and finance minister will be in charge of the “special account” for the program funds, according to Government Regulation (PP) 23/2020 on the economic recovery program.Read also: Experts demand transparency, supervision of SOEs recovery programBI expects to cover an estimated Rp 150 trillion to finance the program via private placement of government bonds, the central bank’s head of monetary management Nanang Hendarsah said. The bonds will have lower yields than the market rate but higher than the central bank pays for its monetary operations, Nanang added. The government and Bank Indonesia (BI) will “share the burden” on debt to finance rescue packages for businesses severely hit by the COVID-19 pandemic, a top official has said.The Finance Ministry’s fiscal policy agency (BKF) head Febrio Kacaribu said that the government was looking for the cheapest financing option to support economic recovery. Therefore, the government is currently working on financing details with the central bank.“The principle of this economic recovery program is sharing the burden and risks,” Febrio told reporters during a press briefing on Wednesday. “BI should be concerned with financing needs. If the government had to bear all the debt interest, this would be hard for us.”last_img read more

Traps snare three endangered leopards in Sri Lanka

first_imgTwo endangered leopards — including a rare black one — have been killed by snares in Sri Lanka in less than a week, sparking calls for authorities to crack down harder on the cruel traps.A third was found alive in a snare and released back to the wild after being tranquilized.In the latest case, the bloated carcass of a leopard was discovered Tuesday strangled by a wire snare on a cashew plantation on the edge of a forest reserve in Neluwa, some 145 kilometers southeast of the capital Colombo. Sri Lankan conservationist Jayantha Jayewardene said the spate of leopard snaring might be villagers driven to desperation because the coronavirus lockdown had deprived them of income.”For about two months these people have not had any work, and without money for food they are setting up snares to catch wild boar,” Jayewardene told AFP.”What we are facing is a bigger problem — not just a wildlife issue.” There are believed to be less than 1,000 leopards in the wild in Sr Lanka, and harming the big cat is punishable by up to five years’ jail.Sri Lanka’s Wilderness and Wildlife Conservation Trust called for all snares to be banned, and those who set them to be prosecuted”Snares are indiscriminate and therefore can kill any animal, either protected or not,” the conservation group’s trustee Anjali Watson told the Daily Mirror local newspaper. “This [latest killing] is clearly seen as a case of incidental killing of leopards by snares. Hence they should be made illegal.” “It is possible that the trap was set for a sambar deer, but the leopard got caught instead,” a wildlife official from the area told AFP.A week earlier, a rare black leopard — also known as melanistic because the color is a pigment condition rather than the mark of a separate species — was found trapped alive in the Nallathanni highlands, but died two days later.The third leopard was found Friday at Yatiyantota, another highland nature area, before being released back into the wild.Although setting snares in national parks and reserves in against the law, they are not illegal elsewhere and farmers often use them to protect crops or catch wild boar.center_img Topics :last_img read more

Coronavirus lockdowns seen increasing HIV risk to women and girls

first_imgCoronavirus lockdowns have hindered the fight against HIV infection in women and girls globally by limiting their access to education and protection from sexual violence, the United Nations warned on Monday.Governments’ focus on tackling the pandemic has also shifted attention and resources away from protecting vulnerable populations from HIV, according to a study by the Joint United Nations Program on HIV and AIDS (UNAIDS).”This pandemic thrives on inequalities and COVID-19 is threatening to throw us off course,” said Winnie Byanyima, the executive director of UNAIDS, in a press briefing. “Everything has focused on COVID-19 as if the HIV pandemic is finished,” said Gracia Violeta Ross, founder of the Bolivian Network of People Living with HIV/AIDS.”Those of us who survived HIV and fought for life and access to treatment and care cannot afford losing the gains that took so much effort to win,” said Ross.UNAIDS urged countries to increase investment in both HIV and COVID-19, citing the Ebola outbreak in western Africa as an example of what could go wrong.It is estimated that disrupted healthcare services that were redirected to fighting Ebola caused 10,600 deaths from malaria, AIDS-related illness and tuberculosis.”We must not forget the HIV/AIDS response,” Eswatini Prime Minister Ambrose Dlamini said in the briefing. “We must ensure that no one is left behind.” Topics : “Lockdowns have brought a higher risk of violence against girls. Millions are out of school today. Women in the informal sector have had their income taken away,” Byanyima said.The United Nations had earlier warned of a surge in domestic violence under lockdowns, with calls to helplines doubling or tripling in some countries, as lockdowns trapped many women indoors with their abusers.UNAIDS highlighted the risk of domestic violence and HIV infection for women and girls in sub-Saharan Africa, who already accounted for 59% of new HIV infections in the region in 2019, before the coronavirus pandemic. Prior to nationwide lockdowns, progress was seen through individual programs helping women in sub-Saharan Africa fight HIV infection.That progress will be hindered as medical supplies become more difficult to access. UNAIDS predicted this could cause half a million AIDS-related deaths in sub-Saharan Africa by the end of 2021.last_img read more

Indonesia must derisk its infrastructure projects to attract foreign investors amid crisis: Infrastructure Asia

first_imgThe ongoing global health crisis has also caused a decline in Indonesia’s foreign direct investment (FDI) for the second consecutive quarter this year, falling by 6.9 percent year-on-year (yoy) to Rp 97.6 trillion in the April-June period.Tan said that Indonesia had shown improvement in its efforts to lower the risks of its infrastructure projects through schemes like viability gap funds (VGF) and public-private partnerships (PPP), which are projected to help attract foreign investment despite not being highly profitable.The VGF is a government subsidy used to partially finance infrastructure construction to boost a project’s financial feasibility.“I think Indonesia did well in terms of ideas because some of things like VGF, and other ideas, help propel more PPP projects. It derisks the projects,” Tan said.Besides derisking its projects, he added that the Indonesian government should also focus its infrastructure development push on public health, waste management, urban development, logistical connectivity and digital connectivity, as those areas were needed to generate a higher level of economic growth, particularly in the post-COVID-19 pandemic era.“If the government makes the right effort in these refocused sectors it will generate economic growth,” he said.During his annual address to the House of Representatives on Aug. 14, President Joko “Jokowi” Widodo vowed to allocate Rp 414 trillion ($27.7 billion) on the 2021 state budget draft for infrastructure development, focusing economic recovery, provision of basic services and connectivity improvement. The proposal is Rp 281.1 trillion higher than the allocation for infrastructure development in the revised 2020 state budget.“Infrastructure spending [in 2021] will be directed toward strengthening our digital infrastructure, increasing our logistical and connectivity efficiency and labor-intensive infrastructure projects that support tourism and industrial zone developments,” the President said.“Furthermore, we will also develop healthcare facilities for the people and provide basic services such as water, sanitation and housing,” he added.Read also: Jokowi sets sights on economic recovery, structural reform in 2021 state budgetTopics : “From my experiences working on projects outside Asia, projects that have an internal rate of return [IRR] slightly below the profitable level of 20 percent can still get a very credible consortium both from the equity and debt side. Furthermore, those types of consortiums will also bring the right support system and the outcome will be great,” he said.The government has relied on the private sector to take part in developing, financing and managing the country’s ambitious infrastructure projects under the National Medium-Term Development Plan (RPJMN) amid state budget limitations.The National Development Planning Agency (Bappenas) has estimated that the country will need US$429.7 billion in infrastructure investment, equal to 6.1 percent of GDP, between 2020 and 2024.However, the government might only be able to finance 30 percent of the projects using the state budget, according to Public Works and Housing Ministry financing strategy director Herry Trisaputra Zuna, adding that it expected additional funds to come from the private sector and non-conventional sources of funding. The Indonesian government should focus on reducing the risks associated with infrastructure projects and prioritize certain types of infrastructure to lure foreign investors during the ongoing global health crisis, Singapore-based infrastructure investment advisory group Infrastructure Asia (IA) has stated.“There is not currently a shortage of liquidity at the international level. However, the issue is how to refocus on opportunities and make them attractive to the international private sector so investors come in and contribute to economic growth,” the advisory group’s executive director Seth Tan told The Jakarta Post in an exclusive interview on Aug. 14.He added that a well-established consortium of investors preferred low-risk infrastructure projects over highly profitable ones, and that governments should seek to attract those types of investors rather than those only seeking to gain high profits.last_img read more

Politically wired millennials to contest December polls

first_imgThe 2020 simultaneous regional elections are shaping up to be unpredictable competitions that will feature several young, high-profile and politically wired candidates who are just entering politics and will seek to woo voters at the ballot, underscoring concerns over the lack of an established political party system to nominate candidates based on merit.President Joko “Jokowi” Widodo’s eldest son Gibran Rakabuming Raka has finally obtained the blessing of the ruling Indonesian Democratic Party of Struggle (PDI-P) to run for the upcoming mayoral race in Surakarta, Central Java, this December alongside the PDI-P’s Surakarta branch secretary Teguh Prakosa.Gibran’s nomination was secured after weeks of tensions between the ruling party’s central board and its Surakarta branch. The local chairman, incumbent Mayor FX Hadi Rudyatmo, previously planned to nominate his deputy Achmad Prakosa to the top position alongside Teguh as part of the selection process for the election. Read also: Gibran, exception to PDI-P’s own rulesInstead, Rudy had to announce that Gibran and Teguh were on the ticket.Gibran is not the only figure in the President’s closest circle to compete in the upcoming elections. Jokowi’s son-in-law Bobby Afif Nasution has also been nominated by the PDI-P to compete in the mayoral race in Medan, North Sumatra, alongside Gerindra Party politician Aulia Rahman.As part of his nomination, Bobby also received support from the Golkar Party, Nasdem Party, Hanura Party, the United Development Party (PPP) and the Indonesian Solidarity Party (PSI). Meanwhile, the upcoming mayoral race in South Tangerang, Banten, will see Rayahu “Saras” Saraswati Djojohadikusumo, niece of the current Defense Minister Prabowo Subianto, face off against the daughter of Vice President Ma’ruf Amin, Siti Nur Azizah.Saras, a politician from Gerindra, will run for deputy mayor alongside the city’s current administrative secretary, Muhamad, while Azizah will run as mayoral candidate alongside her chosen deputy Ruhama Ben, a Prosperous Justice Party (PKS) politician.In Kediri, East Java, the son of Cabinet Secretary Pramono Anung, Hanindhito Himawan Pramono, will also be vying for a spot as regent. He is pairing up with Dewi Maria Ulfa, leader of Kediri regency’s Fatayat Nahdlatul Ulama, the women’s wing of Nahdlatul Ulama (NU).Many of these politically wired candidates will be going into politics for the first time, while others have held various roles in the local bureaucracy or as legislators. But they will be eyeing powerful positions in the upcoming regional elections that are to be held on Dec. 9.One thing is certain: political analysts say that the current crop of election candidates reflects the continued relevance of political dynasties in Indonesia’s democracy, with some suggesting that the situation also reflects the lack of a meritocracy in the political party system, particularly as it relates to regeneration and the candidate-selection process.“Our political structure is oligarchic and [allows for the flourishing of] political dynasties. It is no wonder that the names that have showed up [as candidates] come from those whose families are in power,” said Indonesia Political Review executive director Ujang Komarudin.Read also: Millennials are taking over politics, but just not the right kindFor what it is worth, Ujang said the upcoming elections would draw up the political battle lines between political parties as they prepare for the next presidential election in 2024.“If political parties have a firmer grip on certain regions, this could further pave their way [to win] in 2024,” he said, noting that parties would often rely on regional leaders to leverage their opportunities in subsequent elections, owing to their access to resources, to the bureaucracy and other networks “that can be mobilized” to secure electoral victory.The December regional elections will be held simultaneously in 270 regions across Indonesia to elect nine governors, 224 regents and 37 mayors.Voters, meanwhile, seem unimpressed by the continued sprawl of political dynasties in the country.In a survey conducted between July 27 and 29 by the research and development department of Kompas daily, some 60 percent of respondents were unhappy with the existence of political dynasties, while another 28.2 percent regarded it as a normal aspect of politics.Some 553 respondents aged 17 years or above in 145 cities and regencies across Indonesia were surveyed by the news outlet.Read also: Many Indonesians fed up with political dynasties: ‘Kompas’ surveyThe President has been the recipient of recent criticism for his failure to address the problem of oligarchies, which continue to hold their grip on the political process.However, the Jokowi administration has also set the tone for more involvement by the younger generation, which is poised to dominate much of public life in the next couple of decades in a phenomenon the President likes to call the demographic “bonus” or dividend.Meanwhile, political scientist Djayadi Hanan from Paramadina University said that while Indonesia’s current electoral system seems to have opened the doors for candidates from a younger generation of politicians to compete in elections, there was also much less room for them to run in high-cost competitions to elect regional executives.“Candidates also need to find their own sources of funding [to run in the regional elections]. In that context, the hurdle is higher for millennials, whose financial capacity is yet to reach its peak,” said Djayadi.Topics :last_img read more