The wRap Indonesia: Sept. 19, 2014

JAKARTA, Indonesia – The declining value of the rupiah and the victory of Indonesia’s Under-23 football team at the Asian Games over Maldives lead our wrap of stories from Indonesia the past day.  

1. Rupiah breaches psychological threshold of 12,000 

The rupiah weakened beyond 12,000 per dollar on Thursday morning, the first time since June, on speculation foreign investors will cut their holdings of Indonesian assets as the Federal Reserve moves toward raising borrowing costs, Bloomberg reported. Bank Indonesia (BI) moved to reassure markets, saying the currency was “undervalued” would strengthen “when the government introduces further policy measures to reduce fiscal and current-account deficits,” according to the Jakarta Post. 

2. U-23 team defeats Maldives 4-0, advances to Asian Games round of 16

Indonesia’s national Under-23 team won 4-0 over Maldives in its match on Thursday, September 19, at the Asian Games in Incheon. In its final Group E match, Indonesia will face the Thailand squad on Monday. But with two wins and 6 points already, Indonesia stands atop Group E and qualifies for the round of 16, Tribunnews.com reports.  

3. Democrat support for direct elections hinges on 10 ‘prerequisites’ 

The Democratic Party may have said it supports maintaining direct local elections – dealing a blow to proponents of a bill that seeks to have regional executive leaders be selected by regional legislatures (DPRD) – but the party wants 10 conditions met before it fully commits to it. These 10 are measures the party deems will improve the local electoral system, including a public test for integrity and competence for candidates, accountability on use of campaign funds, a ban on black campaigns, and more, according to Tempo.co.

4. Gerindra seeks to amend law to topple Ahok from post

Prabowo Subianto’s party, Gerindra, is seeking to have the following article inserted in the law on regional administrations: “Regional heads/deputy regional heads should be dismissed from their offices should their nomination recommendation be revoked by their supporting parties,” Tempo.co reported. If the Constitutional Court approves this unlikely request, it would mean Gerindra can recommend the removal of Jakarta deputy governor Basuki “Ahok” Tjahaja Purnama – who is set to become governor as soon as President-elect Joko “Jokowi” Widodo’s resignation is finalized. Ahok resigned from Gerindra on September 10 to protest the party’s support for the bill that seeks to eliminate direct local elections. 

5. Ex-Jakarta transport chief detained over bus procurement graft 

The Attorney General’s Office on Thursday detained former Jakarta Transportation Agency chief Udar Pristono, who has been named a suspect in the corruption case surrounding the IDR1.5 trillion ($125 million) procurement of overpriced and faulty Transjakarta buses in 2013, local media reported. Udar, who was fired by Jakarta Governor Joko “Jokowi” Widodo in February, has claimed the purchase of the buses was the governor’s full responsibility. In response, Jokowi has said he was responsible for the policies he made but not for the irregularities committed by his subordinates, the Jakarta Globe reported in May.