The Indonesian Update — Volume XV, No.6 – June 2021 (English Version)

The June 2021 edition of the Indonesian Update features a main report on the Government’s plan to amend the Law (UU) on Taxation. One of the changes proposed by the Government is related to the rate of value added tax (VAT). The increase in the VAT rate is planned to be applied to products such as basic necessities and other types of mining products or drilling products taken directly from the source, even education services. The reason for the government to increase the VAT rate is to reduce the deficit in the State Revenue and Expenditure Budget (APBN) due to the Coronavirus Disease (COVID-19) pandemic.

In the field of law, this time the Indonesian Update discusses the certainty that the Government will not abolish Law Number 19 of 2016 in conjunction with Law Number 11 of 2008 concerning Information and Electronic Transactions (UU ITE). This certainty is then followed by three recommendations that have an impact on freedom of expression and the proliferation of new types of punishment in the digital world in Indonesia. Furthermore, we also discussed changes to the institutional design of the Corruption Eradication Commission (KPK) which was originally an independent institution, but changed after the enactment of Law Number 19 of 2019 concerning the KPK (KPK Law). In addition, we discuss efforts to eradicate corrupt behavior by public sector officials. This effort includes massive prevention in various sectors, including the business sector.

In the political field, this time the Indonesian Update discusses the online expression of opinions which has not been accommodated in Law No. 9/1998 on Freedom to Express Opinions in Public (UU 9/1998). Next, we also discuss the model of the 2024 general election, which continues to use the five-box selection. The five elections are the election of the President/Vice President, DPR, DPD, Provincial DPRD, and Regency/Municipal DPRD. In addition to discussing the problem of the 2024 Election Simultaneous Model, we also discussed the importance of risk management from stakeholders to mitigate the implementation of the General Election and Pilkada in 2024.

In the social sector, the Indonesian Update this time raised the issue of the “blended learning” model which is one of the best options to start pursuing “lost learning” that occurred due to the pandemic. In addition, we discussed the high number of reports about sexual harassment and violence in the mass media. The emergence of these cases shows that acts of sexual harassment and violence still exist. Next, we discussed the Pre-Employment Card program during the pandemic which became so important, including in encouraging the birth of new entrepreneurs.

The monthly publication of the Indonesian Update with actual themes is expected to help policy makers in government and business institutions – as well as academics, think tanks, and elements of civil society, both at home and abroad, to obtain actual information and contextual analysis of economic conditions, political, social, and legal issues in Indonesia, as well as an understanding of public policy in Indonesia.

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