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Economy

Manggi Habir

President Jokowi's second cabinet reshuffle was expected, but not changes to his ministerial line up. The big surprise was the appointment of former finance minister, Sri Mulyani Indrawati, who returned to her previous post, after a six-year stint as managing director of the World Bank. Sri Mulyani is a well-known and well-regarded economist, both locally and abroad. Market sentiment responded positively to the cabinet changes, with the rupiah stable at the Rp13,100 per US dollar level, while the Jakarta Composite Index (CSPI) climbed up to 5,350. With the rupiah stable and the July year-to-year inflation below market expectations at 3.2 percent, the market expected another 25 basis point cut in interest rates, but Bank Indonesia decided to keep its rate at 6.5 percent.

The first challenge for the the new finance minister will be to secure the government budget. Latest mid-year numbers show tax revenue falling far below its target. As a result, the government's budget deficit to the GDP has widened, although still below the 3 percent limit. Spending cuts are already underway. Additional revenue is expected to come from tax amnesty payments, which is calculated based on a percentage of taxpayer's assets not yet reported in their annual income tax returns. This applies to individuals and institutions and their respective undeclared assets held locally and overseas. If the overflowing attendance of recently held tax amnesty seminars is anything to go by, the potential tax revenue from the tax amnesty program could potentially be quite large.

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Opinion

Publishing the 'confession' of recently executed drug dealer Freddy Budiman is not a crime. Written down by Commission for Missing Persons and Victims of Violence (Kontras) coordinator Haris Azhar, the account that subsequently spread via social media is a criticism of our law enforcement authorities. Instead of gratitude, however, the response from the authorities was one of repression. Haris was reported to the police for defamation and breaking the Electronic Information and Transactions Law.

The publication of Freddy's tell-all 'confession' should be seen as the advocacy of an activist who opposes the death penalty. The word 'confession' is in quotation marks because by the time Haris' words started circulating, Freddy had been executed along with three other convicted drug dealers. In the midst of arguments for and against capital punishment in the last two years, the administration of Joko Widodo has executed 17 convicted criminals so far in three batches. Haris wrote about the weakness of the Indonesian judicial system, which he has made as the basis for his opposition to the death penalty. He reported Freddy's claim, whom he met two years ago at Nusakambangan penitentiary in Central Java, of the involvement of a number of police, military, Customs and Excise and National Narcotics Agency (BNN) personnel in the illegal drug trade. The point we wish to make is that there is always the possibility of errors in a legal process that sentences convicted criminals to death.

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