Indonesia Stumbles Into More Natural Resource Bets


Indonesian President Joko Widodo’s (Jokowi) order on 23 March 2016 that the Masela Block use an onshore Liquefied Natural Gas (LNG) refinery ended six months of intrigue — and years of delay — about Indonesia’s largest offshore gas field. Rather than the floating plant (FLNG) proposed by contractors Inpex and Royal Dutch Shell, gas will be piped to a remote island in Maluku Province where it will be liquefied and used for industry.

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Indonesia’s Unhealthiness is Biased Toward the Poor


New ADBI research (Aizawa and Helble, forthcoming) studies how overweight and obesity have become major threats to public health in Indonesia. The evidence shows that obesity, which was previously a problem among high-income groups in the country, has spread across all income groups. Obesity in the lower-income groups, in particular, has been rising rapidly.

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Fixing the Flaws in Indonesian-Papua Relations


Since West Papua’s integration into Indonesia in 1969 through a United Nations-sponsored people’s referendum — a process considered deeply flawed — the Papuans’ problems have haunted all Indonesian presidents.

A critical juncture came after the downfall of the authoritarian regime of former general Suharto. Beginning in 2002, President Megawati Sukarnoputri’s administration implemented the Papuan Provinces Special Autonomy Law, which aimed to give Papuans more authority to manage their affairs based on local customs.

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IMF Predicts Growth for Indonesia in 2016


According to the International Monetary Fund (IMF) Indonesia’s economy should grow at a slightly faster rate in 2016 after slowing for several years. The growth comes because of higher public investment and improving sentiments around the world toward the Southeast Asian nation’s economy, the largest in the region. 

IS in Indonesia Could Create Economic Chaos


Those behind the attacks in Jakarta on 14 January desperately hoped to emulate the 13 November attacks in Paris. This time they fell far short. The attackers, contrary to initial impressions, were entirely locally organised and failed at almost every level. Four innocent lives were lost but they had clearly hoped to take many more.

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Indonesia’s Jokowi Musters Muslim Support Against IS


On 14 January 2016, Indonesian supporters of so-called Islamic State (IS) militant group launched a coordinated bomb and gun assault in the heart of Jakarta. The attack is a game changer for terrorism in Indonesia. However, Indonesia’s leaders are closing ranks as the government of President Joko Widodo (Jokowi) pursues a long-term response to the growing IS threat in the region.

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Additional Indonesia Terror Attacks Could Send Economy Reeling


Two weeks after the terrorist attack in front of the Sarinah Department Store in central Jakarta, a clearer picture is emerging of the key figures behind the operation and its significance for Indonesian jihadism.

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Joko Widodo and His Uphill Battle for Indonesia Reforms


To many, Indonesian President Joko Widodo’s (Jokowi) election represented a break with the past, as he had no ties to existing military or political elites. The new president was also different from his predecessors in other ways. He had humble beginnings as a furniture seller and began his career in politics at the local level as mayor of Surakarta. In Indonesia and abroad it seemed clear that Jokowi was different and his lack of ties to previous regimes was considered to be an advantage.

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Haze Deeply Cut Into Indonesian GDP, Says World Bank


While forest fires may represent a common sight around the world, as is the damage they wreak, few regions have suffered more economic harm, as a percentage of GDP, than Indonesia did in 2015. Last year, Indonesia’s fires cost the economy at least $16 billion. That amounts to 1.9 percent of Indonesia’s gross domestic product (GDP), according to the World Bank.

Concern Grows Over Indonesia’s Recent Growth Slowdown


Put in a comparative, historical perspective, Indonesia’s economic growth performance has been relatively strong. Yet the recent slowdown in growth is a cause for concern.

It is estimated that the Indonesian economy will only grow 4.7 percent in 2015 and 5.1 percent next year, far below China and India — and even below Vietnam and the Philippines. In addition, the significant drop in total factor productivity growth following the Asian financial crisis has yet to recover, unlike in Thailand and Malaysia.

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