News
Indonesia’s bid to woo investors complicated by ‘sex ban’ code
Medan, Indonesia– For years, Indonesia has strived to present itself as a welcoming investment destination, to rival neighbours Vietnam and Malaysia.
In 2016, during his first term in office, Indonesian President Joko “Jokowi” Widodo announced the opening up of dozens of industries to foreign investment in what he termed a “big bang” of economic liberalisation.Six years later, the Southeast Asian country’s controversial new criminal code – which has been blazed across international headlines, since its adoption earlier this month, due to its ban on sex outside of marriage – is raising questions about Jakarta’s commitment to fostering an open and welcoming business environment.
In Indonesia, opinion remains divided on whether the revised criminal code, which includes prohibitions on blasphemy, cohabitation, sorcery and insulting the government, helps or hurts Jakarta’s sales pitch to the world.
The Indonesian Employers Association (APINDO) has raised concerns about several sections of the code, including penalties for corporate crime, that will have a “broad impact”, and the recognition of customary law.
“For the business sector, the implementation of this customary law shall create legal uncertainty and make investors reconsider investing in Indonesia,” APINDO said in a statement provided to Al Jazeera.
APINDO also said the ban on non-marital sex will “do more harm than good, especially for the business sector engaged in tourism and hospitality”.Other industry figures have brushed off such concerns.
“Currently the government is still implementing the new criminal code. Of course, there will be some pros and cons, but there will be a three-year period before it is applied in real life,” Clement Gultom, Managing Director of Boraspati Tour and Travel, in Medan, told Al Jazeera.
“As such, I am more inclined to choose not to be aggressive towards the new criminal code,” Gultom said, adding that lawyers and activists could apply for a judicial review of the code, through the Supreme Court, if necessary.
Khairul Mahalli, Chairman of the North Sumatra Chamber of Commerce and Industry, expressed similarly upbeat sentiments.
“The function of the government is as a regulator and the function of businesses is as an operator,” he said. “We need to support the government and make sure that the new laws are coordinated at all levels of governance.”
Mahalli said bodies, such as the Chambers of Commerce, would be instrumental in connecting foreign businesses, with local partners, and ensuring the smooth continuation of businesses, after the code comes into effect.
“For now, the world of business, in Indonesia, has not been affected and is a world of opportunity,” he said.
The revised code – a complete overhaul of the code from 1918, when Indonesia was a Dutch colony – had been controversial for years, before its passage, sparking nationwide protests, in 2019. Then, as now, critics feared it would violate basic human rights and erode Indonesia’s democratic freedoms.The changes come as Indonesia has been making strides in its bid to attract investment, which includes a target of attracting $89bn in foreign investment next year.
Indonesia’s foreign direct investment (FDI) rose 63.6 percent, on a yearly basis, in the third quarter of 2022, hitting $10.83bn, according to the Investment Minister, Bahlil Lahadalia.China, Japan and Singapore were the biggest sources of investment, which was mainly driven by the development of resources processing – part of the country’s wider strategy to add value to its minerals.
Some environmental activists have suggested the revised code, far from dissuading investors, will embolden those who wish to exploit fragile ecosystems.Arie Rompas, a campaigner at Greenpeace Indonesia, said he believed the code had been ratified for the benefit of foreign investment and to silence critical voices.
“Investors will be happy because articles on environmental crime have been made easier, which is to say that environmental crimes have been made more difficult to prove in Court,” Rompas told Al Jazeera.
Rompas said many of the new laws, that critics say will restrict dissent and protest, are likely to be used against those who criticise foreign investment, particularly projects that threaten the environment.
“The potential for criminalisation actually threatens local communities and activists if they protest or criticise projects, considered strategic by the government, in cooperation with outsiders,” he said.
“This criminal code was designed to strengthen the spirit of colonialism’s legacy of exploiting natural resources, damaging the environment and silencing critical voices in civil society.”
The new criminal code places restrictions on “organising a march, rally or demonstration” and includes penalties of up to six months in prison for anyone found to have caused “a disturbance to the public interest, trouble, or riots in the community”.Other articles make insulting public authorities, and state institutions, a crime, punishable by up to 18 months in prison.
Usman Hamid, Director of Amnesty International Indonesia, said the Batang Toru Dam project, a $1.6bn China-funded hydropower business, run by Jakarta-based PT North Sumatra Hydro Energy, is an example of the kind of projects the government hopes to protect with the criminal code.The project, which began in 2017, has been controversial, from the start, due to what activists say is the threat it poses to the local Tapanuli orangutan population. Source: Al Jazeera
News
Diesel replacement costs up to Rs. 4.5 bn in April
Coal power generation falls by 27 GWh
A sharp decline in coal-fired electricity generation in April 2026, compared to the corresponding month last year, may have cost Sri Lanka more than Rs. 4.5 billion, as the country was compelled to rely on significantly more expensive diesel-powered generation to make up the shortfall, according to power sector data.
The coal-based electricity generation, in April 2026, was 27 GWh lower than in April 2025, a development that has sparked concern among energy experts and economists over the mounting financial burden on the country’s already strained power sector.
Industry calculations reveal that generating the lost 27 GWh through diesel-fired power plants would require approximately 8.1 million litres of fuel, based on a standard consumption rate of 0.3 litres per kilowatt-hour.
With fuel costs estimated at around USD 286 per barrel, or roughly USD 1.80 per litre, the replacement power would have cost approximately USD 14.57 million. At the prevailing exchange rate of about Rs. 315 to the US dollar, the bill exceeds Rs. 4.5 billion for April alone.
Energy sector analysts say the figure highlights the enormous economic value of maintaining high availability at coal-fired power plants, particularly at a time when Sri Lanka is seeking to reduce electricity costs and strengthen energy security.
“The financial impact of losing low-cost coal generation is substantial. Every unit not generated by coal has to be replaced by a much more expensive source, usually diesel or fuel oil, which ultimately affects the finances of the power sector and the wider economy,” a senior energy analyst said.
Even under a more conservative calculation, based on the average electricity generation cost of around Rs. 72 per unit recorded in 2025, the loss remains significant. The 27 million units not generated from coal would translate into an additional cost burden of nearly Rs. 2 billion.
The decline in coal generation comes at a critical juncture for Sri Lanka’s energy sector.
The government has repeatedly emphasised the need to maintain affordable electricity tariffs, while reducing dependence on imported fossil fuels and expanding renewable energy capacity.
Experts warn that any sustained reduction in low-cost baseload generation could undermine these objectives, increasing the need for costly thermal power and placing additional pressure on foreign exchange reserves.
The latest figures are expected to intensify scrutiny of generation planning, fuel procurement strategies and the operational performance of major power plants. They also underscore the importance of ensuring uninterrupted operation of coal-fired facilities until sufficient renewable and storage capacity is available to replace them reliably.
With the country striving to maintain economic stability and energy affordability, analysts argue that avoiding such generation shortfalls must remain a top priority for policymakers and power sector planners.
By Ifham Nizam
News
Sallay on hunger strike: Counsel warns CID
Asith Siriwardena Counsel for former Director of State Intelligence Service, Major General (Retd.) Suresh Sallay, detained under the Prevention of Terrorism Act (PTA) over the 2019 Easter Sunday attacks, has called upion the Director of the CID, SSP G. S. Abeysekara, to transfer his client either to a private or government hospital to receive urgently needed teatment.
Sallay was on a hunger strike, claiming mistreatment by the CID, his wife said, after visting him, yesterday.
Siriwardena wrote to the CID Director yesterday (07) after Sallay was visited by his wife, son and brother.
The text of the letter: “The family observed that Mr. Sallay’s physical condition has deteriorated to an alarming and critical level.
“He is reportedly unable to attend the visitation without the physical assistance of two officers. During the visit, he informed his family that he had refused medication, saline, food, and water. He further expressed a belief that his death is imminent and requested that arrangements be made for the donation of his eyes. He also requested an immediate visit from his Attorney for the purpose of executing his last will and other related legal documentation.
“These statements, and circumstances, demonstrate a grave deterioration in his physical and psychological condition. It is apparent that he is no longer capable of making rational decisions concerning his own welfare, health, and survival.
The prolonged conditions, under which he is presently being held have, at the very least, created a serious and immediate risk to his life.
“The State assumes a non-delegable duty of care toward every person held in its custody. Once an individual is deprived of liberty, the responsibility for safeguarding that person’s life, health, and wellbeing rests squarely upon the authorities exercising control over that individual. Any failure to discharge that duty in the face of a known and imminent medical emergency is a matter of the utmost legal seriousness.
“You are hereby formally notified that Mr. Sallay requires immediate medical intervention by qualified independent medical professionals and urgent transfer to an appropriate hospital facility capable of providing comprehensive assessment and treatment. Any delay, refusal, or failure to act despite clear knowledge of his precarious condition may give rise to personal and institutional liability under the criminal and civil law of Sri Lanka
“Should General Sallay suffer irreversible injury or death while remaining in the present conditions despite this explicit warning, it will be open to the relevant authorities, courts, and investigative bodies to examine whether such conduct amounts to a deliberate disregard of a known and foreseeable risk to life. Those responsible for decisions concerning his continued detention and medical care may be required to account personally for their actions and omissions.
“Accordingly, I demand that:
1. Mr. Sallay be transferred forthwith to a government or private hospital equipped to provide urgent medical treatment;
2. He be examined immediately by independent medical specialists, including psychiatric professionals if necessary; His legal representatives and family be granted reasonable access to him;
3. A written update on his medical status and the measures taken for his protection be provided without delay. This letter constitutes formal notice. Any further failure to act despite knowledge of the circumstances set out herein will be relied upon in any future judicial, criminal, constitutional, or international proceedings arising from harm suffered by my client.”
News
Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account
The Opposition says the NPP government should explain why the funds received by Rebuilding Sri Lanka haven’t been utilised to provide relief to those affected by Ditwah cyclone in late November last year.
The failure on the part of the government to utilise as much as Rs 10 bn, received from local and foreign donors, came to light when the National Audit Office (NAO) appeared before the Public Finance Commission recently.
The NAO told the House Committee that no statutory fund currently existed under the name “Rebuilding Sri Lanka” and the programme operated through an account maintained under the Deputy Secretary to the Treasury.
The NAO declared that no payments had been made through this account to date.
Former SLPP MP Sanjeewa Edirimanne said that until the disclosure made by the NAO the country had been led to believe the Rebuilding Sri Lanka fund provided post-Ditwah relief. Pointing out that JVP General Secretary Tilvin Silva’s declaration in Jaffna that funds allocated to hold Provincial Council polls
had been utilised to assist Ditwah victims, Edirimanne said such blatant lies were propagated while the government held on to Rs 10 bn meant for the disaster victims.SJB MP Mujibur Rahman questioned the rationale behind keeping funds received specifically for Ditwah victims still living under extremely difficult conditions. (SF)
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