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Protests Test Gov't Resolve As Parl't Delays Electoral Law Vote
Protests have broken out across five cities in opposition to a proposed new electoral law. As noted in earlier coverage (see 'IDR: USD/IDR Rebounds Amid Onshore Protests, Oversold Conditions Correcting', 0436BST), critics argue the new law would tilt the political playing field in favour of the unofficial alliance between outgoing President Joko 'Jokowi' Widodo and President-Elect Prabowo Subianto.
- Jakarta, Yogyakarta, Semarang, Makassar and Bandung have all seen protests materialise, with those in the capital resulting in the adjournment of Parliament and a delay to the passage of the law (although Rep. Habiburokhman, deputy chair of Prabowo's Gerindra party, said to reporters this was due to the lack of a quorum).
- It remains unclear whether the legislature will pass the legislation before the registration period for regional elections opens on Tuesday 27 Aug.
- This all comes after a Constitutional Court ruling on 22 Aug that declared parties will not need to cross a minimum threshold of 20% representation in the regional assembly to field candidates. Almost immediately, parliament put forward an emergency motion to overturn this ruling, sparking the protests.
- If the court ruling is reversed, opposition figure Anies Baswedan - who contested the presidential election in February - would not be able to run for the Jakarta governorship. The gov't is also looking to counter the Court upholding the minimum age limit of 30 to run for office. If removed, this would also permit one of Jokowi's sons, Kaesang Pangarep (29) to run for office in Central Java.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.