Category: Indonesia

If Indonesia’s Jokowi Wants to Demonstrate His Leadership Skills, He Should Hurry

The higher they rise, the harder they fall. No politician in post-Suharto Indonesia has risen higher and faster than Joko Widodo (Jokowi), whose win in the 2014 presidential elections was considered a breath of fresh air for a vibrant but corrupt democracy. The reality of his presidency, though, is not what civil society, foreign governments and investors were crossing their fingers. After eight months in office, Jokowi looks surprisingly conservative, out of touch, and out of his depth.

It Will Take More Than a Village in Indonesia

Nearly 15 years after embarking on its large-scale decentralisation initiative, Indonesia has decided to extend its efforts to the village level. Decentralising to the nearly 74,000 villages is intended to improve service delivery performance at the lowest administrative tier and reduce social inequality and poverty. However, the initiative is all money, with no clear plan.

Indonesia’s Jokowi Winning Hearts and Minds in Papua

President Joko Widodo (popularly known as Jokowi) has affirmed giving special attention to the Papua region, comprising the two provinces of Papua and West Papua. The region has endured a low-level guerrilla insurgency from a militant Papuan independence movement since 1969. Under the nationalist Trisakti doctrine, the new policy will focus on bolstering greater security capabilities in the conflict-prone outermost areas of Indonesia, such as Papua.

Indonesia’s Infrastructure Progress is Thwarted by its Decentralized Structure

Indonesia faces a serious infrastructure crisis, which could slow or even halt its economic development if not addressed effectively. Today, only 81 percent of households have modern access to electricity, only 61 percent are connected to sanitation systems and only 69 percent have access to clean water. Logistics costs are much higher than in neighbouring countries — average transport time per kilometre is 2.6 hours in Indonesia compared to 1.4 hours in Thailand and 1.2 hours in China.

Joko Widodo’s First 100 Days in Office

Distinguishing the first 100 days of President Joko Widodo (Jokowi) and his government are historic reforms to fuel subsidies, social assistance to the poor, streamlined investment licensing and virtually no new restrictive regulations on foreign trade. Fuel subsidy reform has given the government fiscal space for infrastructure development. However, if Indonesia is to attract greater foreign investment, there is still scope to promote openness and regional integration in what is a critical year for Indonesia’s involvement in international trade agreements.

The Proportion of Politically Connected Indonesian Firms is Declining

The financial and political crises of 1998 brought about significant changes in Indonesia’s corporate landscape. The proportion of Indonesian firms with political connections remains relatively high, but it is declining, as modes of political engagement increasingly vary.

How Significant is Indonesia’s Economic Slowdown?

The slowdown in Indonesian growth to 4.7 percent for the first quarter of 2015 follows a steady quarterly slowdown since the 6.8 percent peak just over four years ago. Is this slowdown simply a post-commodity boom cyclical downturn, or is it the beginning of an extended period of weakness?

The answer to this question will be determined by whether the Indonesian government adopts a pragmatic response, or doubles down on an economic course that diverges sharply from the successful path adopted in the post-Asian crisis period.

Indonesia’s Nationalistic Economic Agenda Contradicts the Need for Foreign Investment

On 29 April, Indonesia executed seven foreigners and one Indonesian for drug offences. The refusal of President Joko Widodo (Jokowi) to offer clemency despite pleas from foreign leaders has been analysed in a number of ways. Most have interpreted Jokowi’s decision as that of a contested head of state in a fragile democracy heeding public opinion, which seems to overwhelmingly (86 percent in a recent poll) support the death penalty for drug trafficking. But was his decision instead a deliberate act of public diplomacy, designed to send signals to those missing the Sukarno era?