Author: yosefardi.com

Looks like that energy and mineral resources minister Jero Wacik can’t enjoy for too long his ‘near absolute’ power over Indonesian oil and gas industry. Other political parties do not want to see the Demokrat politician to keep authorities taken over from BPMigas until 2014 elections.

Cabinet Secretary Dipo Alam launched serious allegations to some ministries, including replacing high-ranking officers opposing the minister’s ‘policy’ in budget mark-up and fixing mechanism. Gita Wirjawan, minister of trade, has expressed his readiness to cooperate with the Corruption Eradication Commission (KPK) for the issue.

The Upstream Oil and Gas Regulatory Body (BPMigas) is now a history. The Constitutional Court declared the institution unconstitutional, but considers all contracts signed by BPMigas with other parties valid. It is like declaring someone criminal, but his actions are deemed valid. That’s why some believe this is a political decision.

Other than governor election in the most populous provinces in Java, which might define 2014 elections, we will see interesting races in resource-rich provinces like Papua (January 2013), North Sumatra (March 2013), South Sumatra (June), and Riau (September). Business-political deals might affect dynamics in the years to come.

Next year will be a busy year for regional elections. We will start with election of South Sulawesi governor in January, West Java in February, North Sumatra in March, Central Java in May, South Sumatra in June, and East Java in August. These are the most populous provinces in the country.