Political and Economic Update: From Jakarta's Most Climate-Crisis-Vulnerable City to Calls for the Corruption Eradication Commission's (KPK) TWK to Be Canceled

Political and Economic Update: From Jakarta's Most Climate-Crisis-Vulnerable City to Calls for the Corruption Eradication Commission's (KPK) TWK to Be Canceled

Explore May 2021 highlights: Jakarta tops climate crisis vulnerability risks, COP26 expectations, B30 palm oil impacts, and calls to cancel KPK’s TWK test.

Explore May 2021 highlights: Jakarta tops climate crisis vulnerability risks, COP26 expectations, B30 palm oil impacts, and calls to cancel KPK’s TWK test.

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The Sustainable Madani Foundation summarizes several important events related to the economic and political conditions that occurred in the past week (May 11-17, 2021). Here are the excerpts:

1. Jakarta Tops the List of Cities Most Vulnerable to the Climate Crisis

A list compiled by business analyst Verisk Maplecroft has revealed Asia's unpreparedness for the impacts of the climate crisis. Besides Jakarta, which tops the list, a fifth of the cities on the list are in India or China, according to the study, published Thursday (May 13). The index of cities most vulnerable to the impacts of the climate crisis was created using a number of environmental and quality-of-life indicators, including investment potential, assets and property, and local government capacity.

Jakarta is considered the most vulnerable due to a combination of issues, such as land subsidence and a lack of supporting infrastructure. Currently, it is estimated that approximately 40% of Jakarta lies below sea level. Globally, more than 400 major cities with a population of approximately 1.5 billion people face "high or extreme risk" due to a combination of pollution, dwindling water availability, heat waves, natural disasters, or extreme weather.

2. The COP 26 Summit is Called the Last Hope for Saving the Climate

The COP 26 Climate Change Summit, which will take place in November 2021, is considered the last hope for preventing uncontrolled temperature increases. This was conveyed by COP 26 President Alok Sharma in his speech on Friday (June 14th local time). Delegates were faced with warnings from scientists about the scale of emissions reductions to stay within reach, limiting global warming to 1.5 degrees Celsius, as stipulated in the Paris Agreement. The agreement was made more than five years ago, and participating countries committed to resubmitting their emission reduction plans every five years. However, in practice, many of the largest emitting countries have failed to do so. Meanwhile, the UN says emissions must fall by almost eight percent annually to maintain the 1.5 degrees Celsius target.

The COP 26 summit itself will bring together climate negotiators from 196 countries and the European Union, along with experts and world leaders. The meeting was originally scheduled for November 2020 in Glasgow, but was postponed due to the COVID-19 pandemic. The British government was urged to hold the event virtually because the pandemic was still affecting many countries. Several countries were also concerned that they would not be able to attend if COP26 were held in person due to the ongoing high outbreak in their regions. However, the British government stated that COP26 would still be held in person, as planned.

3. Apkasindo Assesses the B30 Program Can Maintain Farmers' Fresh Fruit Bunch Prices

Palm oil farmers who are members of the Indonesian Palm Oil Farmers Association (Apkasindo) believe that the implementation of the B30 mandate has been able to maintain the price of fresh fruit bunches (FFB) at the farmer level. According to Gulat MP Manurung, Chairman of the DPP Apkasindo, the program, which has been running since January 1, 2020, has proven to be effective in maintaining farmer incomes. According to him, before the B30 mandate was implemented, the price of FFB for farmers during 2017-2019 was in the range of IDR 700-1,200/kg. However, after the implementation of B30, supported by BPDPKS funds, starting in January 2020, the price of FFB for farmers was at the level of IDR 1,800-2,550/kg.

As is known, the program to blend crude palm oil (CPO) into diesel fuel was launched in 2008 through Minister of Energy and Mineral Resources Regulation No. 32/2008, with a target of B10 by 2015, which was later increased to B20. Subsequently, on December 23, 2019, President Jokowi launched the Mandatory B30 Program, which took effect on January 1, 2020, at all gas stations in Indonesia.

On the other hand, according to data from the Indonesian Palm Oil Association (Gapki), Indonesian CPO production in 2021 will be around 53.932 million tons of CPO, a 4.27 percent increase compared to 51.627 million tons in 2020. Meanwhile, domestic absorption in 2021 is predicted to be 33.04 percent, or 18.504 million tons of CPO, with exports reaching 66.95 percent, or 37.01 million tons. The structure of Indonesia's CPO utilization for domestic needs includes food needs (47.02 percent), oleochemical industry needs (9.73 percent), and diesel blend (B30) (43.26 percent).

4. 74 Professors Urge the KPK to Cancel the TWK

Seventy-four professors from across universities and disciplines have called on the Corruption Eradication Commission (KPK) to annul the results of the National Insight Test (TWK) for KPK employees. The professors believe the test violates the law and public ethics. The professors agreed that the dismissal of the 75 employees who failed the TWK could jeopardize major corruption cases currently being handled by the KPK, such as the COVID-19 Social Assistance case, the lobster seed export bribery case, and the bribery of the former Secretary of the Supreme Court.

According to Azyumardi Azra, Professor of the Syarif Hidayatullah State Islamic University Jakarta, the KPK Leadership Decree signed by Firli Bahuri contradicts the meaning of the status transfer. In the letter, Firli ordered employees who failed the Test of Compliance Test (TWK) to hand over their duties and responsibilities to their superiors. According to Azyumardi, the letter already constitutes dismissal by the KPK leadership.

Gadjah Mada University Faculty of Law Professor Sigit Riyanto stated that the National Test of Employee Status (TWK) is unlawful. It is not mentioned in Law Number 19 of 2019 concerning the Corruption Eradication Commission (KPK) or Government Regulation Number 41 of 2020 as a requirement for transferring employee status. He stated that the Constitutional Court has also emphasized in its judicial review decision on the KPK Law that the process of transferring employee status must not harm employee rights.

Professor Kuntjoro of the Faculty of Psychology at Gadjah Mada University (UGM) said the questions in the Test of Competence (TWK) aroused suspicion. He considered the questions posed to employees to be irrational and irrelevant to the issue of corruption eradication. He considered the TWK inappropriate as a requirement for appointing employees to civil service positions.