The Omnibus Law on Job Creation has been challenged to the Constitutional Court even before it is officially enforced. As of last week, three lawsuits were filed: two judicial reviews and one formal lawsuit.
The campaign period for the simultaneous regional elections has officially begun on Saturday, September 26, 2020, ignoring the pressures from epidemiologists, health workers, economists, religious organizations, and the public to postpone them.
More than 500 bankruptcy cases were registered so far this year. A total of 15 public companies are facing bankruptcy claims. Meanwhile, more than Rp 800 trillion in loans from millions of MSME and non-MSME debtors had undergone restructuring.
The social restriction policy in Jakarta has reaped condemnation from central government officials. The main concern of the central government is that social restrictions will further suppress economic growth.
Indonesia broke two different records on September 3: daily confirmed COVID-19 cases and deaths, at 3,622 and 13, respectively. Meanwhile, Jakarta, the worst-affected region and epicenter of the disease, recorded the highest number of daily new infections
Even though the pandemic has escalated, the Indonesian government still does not want to re-implement social restrictions for fear of its impact on the economy. For this reason, presenting COVID-19 vaccines and drugs is the only option.
Banks are under massive pressure due to the high number of NPLs, despite implementing COVID-19-related programs of credit restructuring. Since May, the NPL ratios have reached three percent of total bank credit.
The economic contraction trends expanded in almost all countries in the first half of this year, including Indonesia. The government is eyeing to reverse the downtrend in the third quarter of 2020, targeting a full-year economic growth of 0.5-1 percent.
