JAKARTA: Jakarta voters head to the polls on Wednesday to elect a governor for Indonesia’s teeming capital after a campaign that incited political and religious tensions in the country.
Surveys have shown the race tightening to a statistical dead heat, with incumbent Gov. Basuki Tjahaja Purnama, an ethnic Chinese Christian, closing in on rival Anies Baswedan, a former education minister.
Purnama is standing trial on blasphemy charges stemming from the divisive campaign that also featured mass rallies led by religious hard-liners and alleged plots to overthrow Indonesian President Joko Widodo, who is popularly known as Jokowi.
The Jakarta election is viewed as a larger choice ahead of a 2019 presidential poll between the secular policies Indonesia has practiced since its post-World War II independence and hard-line political policies that have strengthened in recent years.
“This is a test case for Indonesian pluralism, if it can withstand the pressure of the religious groups, the populists,” said Wimar Witoelar, a political analyst and an adviser to former Indonesian President Abdurrahman Wahid.
“Indonesia is at a crossroads, and I mean Indonesia, not just Jakarta.”
A survey conducted April 12-14 by polling firm Indikator showed Anies with 48.2 percent support versus 47.4 percent for Purnama, with 4.4 percent undecided.
The business community is worried about a possible violent backlash from the losing side in the election, which could affect the investment climate and endanger Widodo’s fit-and-start economic reforms.
Southeast Asia’s biggest economy grew 5.2 percent in 2016 and the government expects a repeat of that this year. Indonesian stocks are up 12.6 percent on the year, making the Jakarta market one of Asia’s best performers.
Kartika Wirjoatmodjo, chief executive officer of the country’s largest state bank, Bank Mandiri, said in an interview that whoever won “we (should) make sure it doesn’t affect any of the long-term policies, especially on the openness and ... ease of doing business and attracting investment.”
Purnama, who replaced Widodo in 2014 as Jakarta governor after serving as his deputy, saw his popularity soar as he tackled decrepit infrastructure, chronic flooding and endemic corruption in the traffic-clogged city of over 10 million.
His support plunged after an edited video circulated last September suggesting Purnama had made anti-Islamic remarks. This was used by his opponents to argue Muslims should not vote for a person holding different religious beliefs.
Amid two rallies last year that drew hundreds of thousands of protesters, Purnama was charged with blasphemy, forcing him to make regular appearances in court during the campaign. The hard-liners behind the rallies — led by the Islamic Defenders Front (FPI) — were cultivated by Purnama’s rivals. Baswedan was accused of betraying his moderate roots when he met and sang with FPI leader Habib Rizieq, who was imprisoned twice for inciting violence in 2003 and 2008.
Purnama recovered to win the first round on Feb. 15 with 43 percent of the vote, compared to 40 percent for Baswedan and 17 percent for Agus Yudhoyono, son of former president Susilo Bambang Yudhoyono, who drew support from conservatives.
The FPI has vowed to stage further protests and a “revolution” if Purnama wins, according to flyers circulated by the group.
A senior government official said a victory for Purnama could reignite religious tensions and China-baiting at a time when the government is chasing Chinese investment for much-needed infrastructure.
“I worry that if a sizeable portion of the electorate feels cheated, there could be a very serious backlash,” said the official, who asked for anonymity to speak freely about the political climate in Indonesia.
However, political analyst Tobias Basuki also saw risks for the national government and its reform agenda if Baswedan won, given plans by his political patron Prabowo Subianto to challenge Widodo in the 2019 presidential poll.
Baswedan was Widodo’s campaign manager in the 2014 presidential election, when he beat Subianto. But Widodo sacked him as education minister last year.
“Anies and Prabowo controlling Jakarta would impede Jokowi every step of the way,” Basuki said.
Jakarta election exposes deep political divide
Jakarta election exposes deep political divide
Iran war unsettles India’s packaged water makers as bottles, caps get pricey
- Higher polymer prices hurt bottled water industry
- Industry worth $5 billion has big multinational players like Pepsi, Coca-Cola
NEW DELHI: The Iran war is rattling India’s $5 billion packaged water market just ahead of the sweltering summer season.
One of the world’s fastest growing bottled water markets is seeing some manufacturers hike prices for distributors, as supply disruptions linked to the war fuel higher costs in everything from plastic bottles to caps, labels and cardboard boxes.
Though retail prices are yet to feel the heat and bigger companies are absorbing the pain, about 2,000 smaller bottled water makers have increased rates for their resellers by around 1 rupee per bottle, a 5 percent hike, which will rise by a further 10 percent in coming days, according to the Federation of All India Packaged Drinking Water Manufacturers’ Association.
Consumers usually pay less than 20 rupees, or around 20 US cents, for a one-liter bottle.
“There is chaos and within the next 4-5 days, this will start impacting customer prices,” said Apurva Doshi, the federation’s secretary general.
Rising oil prices have increased the cost of polymer, which is made from crude oil and is a key material for the industry’s plastic bottles. The cost of material used in making plastic bottles has risen by 50 percent to 170 rupees per kilogram, while the price of the caps has more than doubled to 0.45 rupees apiece. Even corrugated boxes, labels and adhesive tape are costing much more, industry letters showed.
Clean water is a privilege in the country of 1.4 billion people where researchers say 70 percent of the groundwater is contaminated, leaving people reliant on bottled water. Companies including Bisleri, Coca-Cola’s Kinley, Pepsi’s Aquafina, billionaire Mukesh Ambani’s Reliance and Tata all compete for a share of the $5 billion market. The companies did not respond to Reuters request for comment.
PREMIUM WATER FACES HEAT TOO
Within the broad bottled water market, natural mineral water is a $400 million business in India and a new, fast-growing wellness product for India’s wealthy.
The premium water segment accounted for 8 percent of the bottled water market last year in India, compared to just 1 percent in 2021, Euromonitor says.
Aava, which sells mineral water sourced from the foothills of the Aravalli mountains, has increased prices of its water bottles by 18 percent for resellers, Shiroy Mehta, CEO of the company, told Reuters.
“Most manufacturers are absorbing 40-50 percent of the cost to ensure that they don’t lose clients. It’s a poor situation for the beverage industry ahead of the summer season,” he said.
The mass market, however, is dominated by companies that produce “drinking water” to be sold in 1-liter bottles to customers. Clear Premium Water, a brand of India’s Energy Beverages, said in a notice to its distributors there had been an “unprecedented and continuous surge” in prices of key raw materials used in packaging and production.
“It is no longer possible for us to absorb the escalating costs while maintaining existing product prices,” the notice said.
One of the world’s fastest growing bottled water markets is seeing some manufacturers hike prices for distributors, as supply disruptions linked to the war fuel higher costs in everything from plastic bottles to caps, labels and cardboard boxes.
Though retail prices are yet to feel the heat and bigger companies are absorbing the pain, about 2,000 smaller bottled water makers have increased rates for their resellers by around 1 rupee per bottle, a 5 percent hike, which will rise by a further 10 percent in coming days, according to the Federation of All India Packaged Drinking Water Manufacturers’ Association.
Consumers usually pay less than 20 rupees, or around 20 US cents, for a one-liter bottle.
“There is chaos and within the next 4-5 days, this will start impacting customer prices,” said Apurva Doshi, the federation’s secretary general.
Rising oil prices have increased the cost of polymer, which is made from crude oil and is a key material for the industry’s plastic bottles. The cost of material used in making plastic bottles has risen by 50 percent to 170 rupees per kilogram, while the price of the caps has more than doubled to 0.45 rupees apiece. Even corrugated boxes, labels and adhesive tape are costing much more, industry letters showed.
Clean water is a privilege in the country of 1.4 billion people where researchers say 70 percent of the groundwater is contaminated, leaving people reliant on bottled water. Companies including Bisleri, Coca-Cola’s Kinley, Pepsi’s Aquafina, billionaire Mukesh Ambani’s Reliance and Tata all compete for a share of the $5 billion market. The companies did not respond to Reuters request for comment.
PREMIUM WATER FACES HEAT TOO
Within the broad bottled water market, natural mineral water is a $400 million business in India and a new, fast-growing wellness product for India’s wealthy.
The premium water segment accounted for 8 percent of the bottled water market last year in India, compared to just 1 percent in 2021, Euromonitor says.
Aava, which sells mineral water sourced from the foothills of the Aravalli mountains, has increased prices of its water bottles by 18 percent for resellers, Shiroy Mehta, CEO of the company, told Reuters.
“Most manufacturers are absorbing 40-50 percent of the cost to ensure that they don’t lose clients. It’s a poor situation for the beverage industry ahead of the summer season,” he said.
The mass market, however, is dominated by companies that produce “drinking water” to be sold in 1-liter bottles to customers. Clear Premium Water, a brand of India’s Energy Beverages, said in a notice to its distributors there had been an “unprecedented and continuous surge” in prices of key raw materials used in packaging and production.
“It is no longer possible for us to absorb the escalating costs while maintaining existing product prices,” the notice said.
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