Indonesia looking for expanded military ties with India

(Indonesia intends to improve military ties with India, especially for an enhanced joint patrol with the Indian Navy, a senior Indonesian naval official said)

The Economic Times – Indonesia intends to improve military ties with India, especially for an enhanced joint patrol with theIndian Navy, a senior Indonesian naval official said here today.

“We are going to have a navy to navy talk on improving military ties and on other fields such as education and training of personnel. We look forward for escalating both navies involvement in the IND-INDO CORPAT,” Commander Amrin Rosihan told reporters on board KRI Sutanto. [Click here for full article…]

Indonesians Trust Businesses More Than Govt, Survey Shows

An official walks by the red carpet at the APEC CEO Summit 2013 in Nusa Dua, Bali, in this file photo. (JG Photo/Jurnasyanto Sukarno)

Jakarta Globe – Businesses are the most trusted institutions in Indonesia ahead of the media, nongovernmental organizations and governments, according to a recent survey.

 

The 2014 Edelman trust barometer survey revealed a 10 percentage point increase in Indonesia’s trust index, an aggregate of the nation’s confidence across the four institutions.

 

This year, 82 percent of respondents put their trust in businesses compared to 78 percent for the media, 73 percent for NGOs and only 53 percent for government.

 

At the release of the survey this week, Stephen Lock, Edelman Indonesia chief executive and head of public affairs for South East Asia, said the results, indicating Indonesia’s increasing trust in businesses “reflect faith in a strong economy.”

 

“It suggests that people are looking to business leadership, to play a role in the development and change in the country, because they don’t believe that government will make that change,” he said.

 

The survey collected data from 33,000 respondents in 27 countries, polling the general population as well as a university-educated informed public. This is the 14th year of the annual global study, Indonesia has been included in the survey for the past six years.

 

In last year’s Edelman survey, Indonesians labeled government officials or regulators as the least credible when compared with other professions. This year, their trust rating jumped six percentage points, to 53 percent from 47 percent last year, demonstrating a newfound belief in elected institutions.

 

Stephen Lock described the rise in trust levels for government in Indonesia as “unexpected.”

 

Despite the rise, trust in government leadership remains poor in Indonesia. Just 14 percent of Indonesians trust government leaders to fix problems, and only 15 percent trust government leaders to tell the truth. [Click here for full article…]

Indonesian candidates add social media to campaign arsenals

The Institute for Policy Research and Advocacy’s (Elsam) Wahyudi Djafar speaks at the “Challenges to Freedom of Expression in the Online World” forum in Jakarta on January 21st. [Yosita Nirbhaya/Khabar]

Khabar – Hopefuls in the legislative and presidential races are going online and reaching out to Indonesia’s hugesocial media audience, using Twitter, Facebook and YouTube to spread their messages.

One voter who has been getting to know the candidates via social media, is university student Abimata Putra, 23.

“I think knowing the character and the profile of political candidates is very important. They will make decisions and regulations for society, including for me,” he told Khabar Southeast Asia.

Among Twitter-savvy candidates are Prabowo Subianto, presidential contender from the Great Indonesia Movement Party (Gerindra) and Wiranto, one of his rivals in the July 9th election, who represents the People’s Conscience Party (Hanura). Respectively, the two use “@prabowo08” and “@wiranto1947” as Twitter handles.

Gerindra’s account has more than 147,000 followers, according to Setyoko, a member of the party’s online media team. He created the account to interact with supporters, he told Khabar.

“Social media gives politicians and political parties a chance to have a direct interaction with constituents,” said Wahyudi Djafar, a representative of the Institute for Policy Research and Advocacy (Elsam).”They must pay attention to the use of social media, and where it should reflect the principles of democracy.” [Click here for full article…]

Indonesia’s Growth Beats Estimates as Rebound Seen Faltering

Bloomberg Business Week – Indonesia’s economic growth unexpectedly quickened last quarter after an export rebound, an acceleration that may be short-lived as higher interest rates weigh on domestic consumption and investment.

 

Gross domestic product rose 5.72 percent in the three months ended Dec. 31 from a year earlier, the Central Bureau of Statistics said in Jakarta today. That beat all estimates in a Bloomberg News survey of 25 economists, where the median was 5.34 percent. The economy grew 5.78 percent in 2013.

 

Central bank Governor Agus Martowardojo embarked on the country’s most aggressive rate-tightening cycle in eight years within a month of taking the helm in May to shore up the rupiah and damp price pressures. The expansion in 2013 was the least in four years, and analysts from Credit Suisse Group AG to Barclays Plc predict it will weaken further in 2014.

 

“Despite today’s upside surprise, we maintain our view that Indonesia’s growth will slow further in the coming quarters, as the impact of Bank Indonesia’s policy tightening weighs on credit growth and, in turn, GDP growth,” said Prakriti Sofat, an economist at Barclays in Singapore. GDP may expand 5 percent this year, she said. [Click here for full article…]

Indonesia 2013 GDP Growth Slows To 4-Year Low

RTT News – Indonesia’s economy expanded at the slowest pace in four years in 2013, as tight monetary conditions, elevated inflation levels and a weak currency weighed on growth.

The gross domestic product expanded 5.78 percent year-on-year last year, after the 6.23 percent growth in 2012. This was the weakest rate of expansion since 2009, when the GDP was up 4.63 percent.

In the fourth quarter, the GDP rose 5.72 percent year-on-year compared with expectations for 5.37 percent growth. This followed a 5.62 percent increase in the third quarter. On a quarter-on-quarter basis, GDP decreased 1.42 percent in the fourth quarter.

The central bank has so far increased the key policy rate by a cumulative 175 basis points since June last year in an attempt to rein in inflation, stabilize the rupiah exchange rate and to narrow current account deficit.

The rupiah suffered a sharp depreciation in the third quarter after fears of an imminent tapering of Federal Reserve’s stimulus program set off a wave of capital outflows across the emerging markets. Indonesia’s high inflation and large current account gap exacerbated the crisis. [Click here for full article…]

Official Claims Economy will Keep on Improving

Tempo.Co – Presidential special advisor for economic affairs Firmanzah expressed his optimism that Indonesia’s economy will keep growing despite uncertain global economic conditions. This confidence is based on the Nielson Global Consumer Confidence Index, which labels Indonesia as the most optimistic market in the fourth quarter of 2013.

“Even though the World Bank’s projection shows economic slowdown this year, the government is optimistic that economic development will keep growing,” said Firmanzah yesterday, as reported on the Cabinet Secretary website.

Firmanzah optimism was shared by other global economic powers.  During the World Economic Forum in Davos last month, world leaders agreed that global markets would slowly improve. Such condition can be seen from the strengthening of global economic condition, dwindling fiscal crises, stronger regulators, and adequate liquidity in markets. [Click here for full article…]

Exporters: Indonesia Needs more Ports

Temp.Co – General Secretary of the Indonesian Employers Association (Apindo) Suryadi Sasmita, expressed his concern over the lack of ports in Indonesia after underlining the difficulty businesses have in moving goods to and from Tanjung Priok port in Jakarta.

“There should be a large port at Merak as an alternative,” he told Tempo yesterday.

Suryadi said that shipment activities are too concentrated in Jakarta, while the trip from Bakauheni to Jakarta is lengthy due to inadequate infrastructure supports.

“The queue line at the Merak and Bakauheni crossing is always lengthy,” he said.

Currently, Suryadi added, the main problem that must be addressed is moving goods to and from Sumatra. Therefore, additional ports would help to make distribution more efficient and cost-effective.

According to Chairman of the Indonesian Logistics Association (ALI) Zaldy Masita, the improvement of Sumatra’s west and east highway must be prioritized. According to Zaldy, better roads would reduce logistics cost by 50 percent. [Click here for full article…]

US eases visa process for Indonesian citizens

Roberto2: Robert O. Blake Jr. JP/Yohanna Ririhena

Jakarta Post – Aiming at expanding people-to-people cooperation between the two nations, US Ambassador to Indonesia Robert O. Blake Jr., said US visa applications would be more accessible.

Blake, who presented his credentials to President Susilo Bambang Yudhoyono on Thursday, brushed aside the widespread perception that — for Indonesians — US visas were very difficult to secure.

“Sometimes I hear Indonesians say it is hard to get a visa. I want to say very categorically that that is not true,” Blake said during a discussion with the media at his residence on Monday.

Blake cited the fact that the US Embassy in Jakarta had approved most of the visa applications it processed.

“Specifically, 98 percent of Indonesians that applied for student visas […] received those visas. Likewise, 92 percent of those who applied to travel to the US were granted their visas,” he added.

US visa denial is a widespread perception, particularly after the Sept. 11, 2001 terrorist attacks, with many applicants complaining they were given no clear reason for the rejection.

The situation has also been reflected in the number of Indonesian students applying to study at US universities under US government grants: The number dropped after the attacks in 2001, due to the US’ more stringent visa application process. [Click here for full article…]

New US Envoy Champions Strong Economic, Educational Relations

Robert Blake, the new Us ambassador to Indonesia, is pushing for stronger ties through investment. (JG Photo/Muhamad Al Azhari)

Jakarta Globe – Robert Blake, the newly appointed US ambassador to Indonesia, says he is seeking to focus his efforts on forging a greater economic collaboration between the two nation and expanding cooperation on issues of climate change and human resources development.

“Indonesia is one of the fastest-growing economies in the world and is playing an important role in international economic institutions like the G20 and it is an increasingly important market for the United States,” Blake told a selected media, including Jakarta Globe, at his official residence in Menteng, Central Jakarta, on Monday.

The US envoy, who presented his letters of credential to President Susilo Bambang Yudhoyono last Thursday, arrived in Jakarta on Nov. 21. He replaces former ambassador Scot Marciel.

Blake, 55, a career diplomat who joined the US Foreign Service in 1985, said one of his priorities was to improve two-way trade between the United States and Indonesia, as part of an effort to help create more jobs and propel growth.

“One of my priorities will be to work with our friends in the government, our friends in Kadin [the Indonesian Chambers of Commerce and Industry], Apindo [the Indonesian Employers Association], to do what we can do to improve the investment climate,” said Blake, who previously served as the US assistant secretary of state for South and Central Asian affairs.

Kadin and Apindo are the two main business associations in Indonesia.

The United States is Indonesia’s ninth-biggest trading partner for non-oil-and-gas exports as well as imports, according to the Central Statistics Bureau (BPS).

Indonesia posted around $6.2 billion in trade surplus from the non-oil-and-gas trade with the world’s biggest economy last year. [Click here for full article…]

Improving Corporate Governance Seen as Key for Further Foreign Investment in Indonesia

Indonesian Finance Minister M. Chatib Basri. (Bloomberg Photo/Dimas Ardian)

Jakarta Globe – Indonesian Finance Minister M. Chatib Basri has called on the country to improve corporate governance as part of its efforts to lure more foreign investors.

“During the era of easy money, foreign investors usually place their portfolio without a full assessment of the country,” Chatib said at an event organized by the Financial Services Authority (OJK) in Jakarta on Tuesday.

“As that era ends, investors will take more time with their decisions and start looking to corporate governance as one of the indicators.”

The comments came as the OJK, which oversees financial institutions including banks and the stock market, made its stance on corporate governance by releasing a manual for such practices on Tuesday. The OJK partnered with the International Finance Corporation, the investment unit of World Bank, to produce the manual for Indonesia.

“The Good Corporate Governance [GCG] Roadmap will be the main reference in improving the practice and regulations toward good corporate governance for Indonesian companies, especially for listed companies,” OJK chairman Muliaman Hadad said.

The OJK’s manual listed 33 initiatives on good corporate governance in five areas: corporate governance framework, protection of shareholders, role of stakeholders, information transparency, and the responsibilities of commissioners and directors.

One of the initiatives requires listed companies to create their websites in both English and Indonesian. Nurhaida, who is the OJK’s commissioner for capital markets, said that having no website in English showed a lack of transparency to foreign investors.

The OJK aims to regulate this initiative in June 2015.

“We hope to fill in all the gaps [in the practice of corporate governance] within the next two years,” said Muliaman, who was a deputy governor of Bank Indonesia before being appointed as chairman of the OJK two years ago. [Click here for full article…]

Scholars, intellectuals endorse Prabowo’s bid

The Jakarta Globe – A group of university professors and intellectuals announced on Wednesday its collective endorsement of Gerindra Party presidential candidate and chief patron Prabowo Subianto, giving the retired army general another moral boost ahead of the upcoming presidential election. Former Bandung-based Padjadjaran University rector Yuyun Wirasasmita, who read the group’s endorsement during a gathering […]