Six dead after protesters clash with Indonesian police over election results


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Six people died and 200 were wounded in the Indonesian capital during civil unrest that has wracked Jakarta since incumbent Joko Widodo was declared the winner of the April presidential election.

Authorities are investigating the causes of death and are not ruling out the involvement of third parties acting as provocateurs, police chief Tito Karnavian said at a news conference.

He said police have evidence that showed the victims were hit by bullets and blunt objects.

Hundreds of supporters of Mr Widodo's adversary, Subianto Prabowo, protested against the results of the election. Protesters were in a stand-off with police in Jakarta on Wednesday after Tuesday night's violence.

While the demonstrations initially were peaceful, violence spread on Tuesday evening.

Protesters attempted to storm a police station. Several vehicles and a paramilitary police dormitory were set on fire.

Police used teargas, rubber bullets and water cannon to fight protesters wielding Molotov cocktails, according to the Associated Press.

Police spokesman Dedi Prasetyo said forces on the ground, including military personnel, were not armed with live ammunition.

But Fadli Zon, deputy chairman of the losing political party, said he found 171 bullets, including live rounds, upon his visit to the area on Wednesday morning.

Mr Zon accused the police of initiating an attack on protesters.

"The public have a right to demonstrate. They are people who are concerned by cheating. They are not mobilised, paid or facilitated," Mr Zon said.

Police, which have been placed on the highest security alert nationwide until May 25, suggested the violence was planned. Inspector General Mohammed Iqbal told media at national police headquarters that "the event this morning was not a spontaneous mass event but an event by design". He said 58 instigators of violence were arrested.

The government said it restricted access to social media to quell fears and stop the spread of fake news.

Mr Prabowo announced he was contesting the election results and filing a legal challenge, citing fraud. But a supervisory election agency has found no evidence to suggest systematic cheating, and confirmed a free and fair election.

Mr Prabowo, representative of the Gerinda party, is the former son-in-law of former dictator Suharto. Mr Suharto’s fall in 1998 initiated a wave of reforms.

Mr Prabowo’s campaign was fear-based. It highlighted Indonesia’s vulnerabilities, including the growing concern of exploitation by foreign powers. He dominated in conservative provinces, specifically those governed under Sharia.

Although his supporters had high hopes for the former special forces general, he consistently trailed behind Mr Widodo in polls.

On the campaign trail, Mr Widodo touted promises of a declining poverty rate and a focus on the country’s infrastructure – new public transit, ports, toll roads and airports.

The incumbent’s political career began in 2005 when he became mayor of Surakarta. In 2012, he was elected governor of Jakarta. He is known for pushing transparency and challenging corruption.

In 2014, Mr Widodo ran for president and beat out Mr Prabowo for the first time. Similar to the 2019 election, Mr Prabowo disputed the election results and refused to concede. After several weeks, he withdrew and Mr Widodo took the presidency.

Mr Widodo’s second five-term is expected to begin on October 20.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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THE BIO: Martin Van Almsick

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Breakfast routine: a tall glass of camel milk

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Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.

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Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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