...Indonesia Country Report Q1 2012 POLITICAL AND SOCIAL BACKGROUND Indonesia has excellent prospects for long term growth, based on macroeconomic stability, supported by strong domestic consumption and stable political conditions. President Susilo Bambang Yudhoyono’s reputation remains high in international circles, boosted by the country’s focus on re-establishing its leadership role within ASEAN and as the incoming Chair of APEC 2013. The country has a demonstrated desire to take on a global role by promoting itself as the world’s third largest democracy and largest moderate Muslim-majority country, but also as a new Asian economic powerhouse with stable economic growth and sound macroeconomic outlook. A more influential role in G20 highlights how Indonesia now is placed alongside giants China and India as one of the most important emerging economies in the world. Yudhoyono has two and a half years left in office and should further accelerate the reforms of the country, before his term ends in 2014. However, the most pressing reform on subsidised fuel price has yet again been postponed. In late March Indonesia’s revised 2012 budget was discussed in parliament. Following violent demonstrations, the President lost crucial support within his coalition failing to push the fuel price hike vote through parliament. The President’s Party has taken a hit in terms of popularity. A survey by the Indonesian Survey Institute showed that domestic support for the ruling Democratic Party...
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...the University for the purpose of detecting plagiarism. Name : Poppy Puspita Rini Student Register Number : 1006718624 Depok, June 11 2013 Poppy Puspita Rini Introduction Corruption in Indonesia is widespread and costly. Recently, corruption cases become a major on-going economics development sector issue. Indonesia’s Corruption Eradication Commission (Indonesian: Komisi Pemberantasan Korupsi) (abbreviated KPK) shows there has been a sharp increase in all enforcement activity, relating to the sector. Political organizations in economic sector continue to face significant corruption risks. How far the current corruption and bribery case in Indonesia’s economic development? • Corruption and bribery historical trends across Indonesia • The underlying reason and effects of corruption and bribery on the development results • Strenuous solutions taken to overcome corruption and bribery • Conclusion: the future of corruption and bribery Cross-country studies in investigating the causes of corruption in Indonesia have identified several...
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...National Competitiveness Based on World Economic Forum Report and Doing Business Report THE INDONESIA CASE MAIN SOURCES: * World Economic Forum, Global Competitiveness Report 2015-2016 * World Bank, Doing Business Report 2015-2016 * “The Economist” * “The Age” * “CNBC, World Economy” * “Indonesia-Investments” LORENZO TRABACCHI 4502720 INDONESIA: A CASE OF COMPETITIVENESS The World Economic Forum approach: Indonesia case Overview According to the WEF Global Competitiveness Report 2015-2016, Indonesia has an overall position of 37 out of 140 countries, with a score of 4.52 from 1 to 7 and a positive trend line which shows the evolution in percentile rank since 2007. Even the rank among 2014-2015 economies was 37, while the GCI 2014-2015 rank was 34 out of 144 economies. The graph here, shows that, the GDP per capita in Indonesia, since 1990 to 2014, had always grown in parallel with but more than the average of other countries in the same regional area (Emerging and Developing Asia). Since 2012-2013, Indonesia has always grown in terms of GCI, moving from the 50th to the 37th position with a score shifted from 4.4 to 4.5. Overall position of the country in the regional area Behind Singapore (2nd), the five largest members of the Association of Southeast Asian Nations (ASEAN)—namely Malaysia (18th, up two), Thailand (32nd, down one), Indonesia (37th, down four), the Philippines (47, up five), and Vietnam (56th, up 12)—all rank in...
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...The role of the middle class in achieving democratic reforms in Asia Table of Contents 1. Abstract 3 2. Introduction 3 3. What is Middle Class? 3 4. Democratization (Democratic Reforms) 4 5. Democratization in Asia 4 6. Historical Cases of Democratization from Asia 4 6.1. Philippine 4 6.2. Taiwan 5 6.3. South Korea 5 6.4. Indonesia 5 6.5. Thailand 5 7. Middle Class & Democratization in Asia 6 8. Conclusion 7 9. References 7 10. Discussion Questions 8 1. Abstract This essay is about the role of middle class in the democratic reforms in Asia. It briefly discussed significance of middle class with many examples of democratic transitions in the region. 2. Introduction A question that is commonly raised about the democratization is that who make and strengthen the democracy, whether it is consolidated by elites or middle class? Many studies have given much emphasize to the role of elites in creation of democracy but the reforms happened in last two decades in Asia suggests that the contribution of middle class to the process of democratization can never be overlooked. In Philippines, Indonesia, Thailand and South Korea we cannot imagine the completion of democratization if we ignore the role of middle class although it is mostly seen in supportive role but successful democratic transition was only possible with its active participation. 3. What is Middle Class? Middle class is relatively vague concept as it has different meaning for different people...
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...economic crisis which faced Indonesia in 1997, which in turn led to Indonesia making major reforms in government as well as in every other sector. It also looks at the major factors that also have to be improved even though major reforms have swept the nation. The policy of decentralisation, although done for the better, has its drawbacks which can hurt Indonesia in the long run. Contents - Executive Summary 2 -Acknowledgements 3 -Introduction To The Topic 3 -Background Literature Survey 4 -Observations 8 -Conclusions and Recommendations For Future Studies 9 -Appendix/Bibliography/References 10 Acknowledgements I would like to thank Prof. Perrie, for initiating this project and letting us choose suitable topics to analyse. Introduction to topic Indonesia is a country with around 240 million people. From being one of the worst hit countries of the Asian financial crisis of 1997-1998 it has become one of the largest countries in the South East Asia in terms of Economy. With a population so big and also a diverse ethnic culture to keep in mind the reforms which were propagated after the financial crisis has been largely the decentralisation of the Government. Background Literature Survey Indonesia has seen many difficulties...
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...INDONESIA Economic Freedom Score 25 50 75 100 free Most Least free 0 World Rank: 108 Regional Rank: 20 56.9 economic freedom score is making its econI ndonesia’slast year, withthe 2013 Index.56.9,score is 0.5finanomy the 108th freest in Its point better than significant improvements in Freedom Trend 58 57 56 55 54 53 52 cial freedom and freedom from corruption that more than offset declines in business freedom and the management of public finance. Indonesia is ranked 20th out of 41 countries in the Asia–Pacific region, and its overall score is below the world average. Indonesia, Southeast Asia’s biggest economy, has undertaken wide-ranging reforms to address various structural weaknesses and improve competitiveness. Recent reform measures have put greater emphasis on improving regulatory efficiency, enhancing regional competitiveness, and creating a more vibrant private sector through modernization of the financial sector. Despite some progress, Indonesia’s growth potential remains fragile and hampered by inefficient legal and investment regimes. Political interference in the private economy discourages dynamic economic expansion, and pervasive corruption, exacerbated by a weak judicial system, adds business risk. During the first half of 2012, the government reintroduced trade and investment barriers that include limits on ownership of banks and mines and export taxes. backgRound: Indonesia is the world’s most populous Muslim-majority democracy. In...
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...1.0 Question 1 Indonesia began a process of rapid government decentralization in 1999 from a formerly strong centralized government structure (Keith Green, 2009). According to Darmawan (2008), under former president Habibie, this reform process was conducted due to the introduction of new decentralization guidance in 2001 under Law 22/1999 on regional governments and Law 25/1999 on fiscal balance between the central and regional governments have changed the intergovernmental relations in Indonesia. Then, they were replaced by Law 32/2004 and Law 33/2004. The World Bank declared that decentralization is defined as “the transfer of authority and responsibility for public functions from the central government to intermediate and local governments or quasi-independent government organizations and/or the private sector”. Decentralization is also regarded as a way of diffusing social and political tensions and ensuring local cultural and political autonomy (Bardhan, 2002, p. 185). Local governments in Indonesia started to develop and to govern their regions by gaining huge transfer of authority and ability to make their own decision-making from central government with these laws. Indonesia begins with the components in political decentralization and then move forward to fiscal decentralization and finally the administrative decentralization. According to Cheema, Nellis and Rondinelli (1999), political decentralization aims to give citizens or their elected representatives more...
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...Finance | The Rise of the Sukuk in Indonesia’s Islamic Finance Industry Islamic banking is one of the fastest-growing segments in international finance. Indonesia is home to the world's largest Muslim population (around 210 million), yet its share in Islamic finance is still low. Neighbouring Malaysia, with less than a tenth of Indonesia's population, has effectively turned itself into a global leader for sharia-compliant banking. But Indonesia's new Financial Services Authority (OJK) looks determined to help the country catch up. Sukuk will remain the heavyweight Islamic asset class in Indonesia (and globally) for the foreseeable future, buoyed by the immense capital needed for infrastructure development At a time when conventional investment products in developed economies have lost appeal due to their unattractively low yields, investors around the world are turning to sukuk, a kind of bond that is permitted under the Koran. Compared to conventional securities, sukuk usually offer higher returns and are considered fairly safe because they are backed by tangible assets. For Indonesia, this is an opportune context to carve out for itself a greater share of the global market. Realising the potential that Islamic finance holds for Indonesia's emerging economy, such as funding massive infrastructure development (See Indonesian Infrastructure: Tremendous PPP Opportunities), deepening the country's capital markets and making them more resilient to global downturns, the government...
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...GBHN AND THE DEVELOPMENT PLANNING IN INDONESIA Imam Subkhan Abstract After more than a decade Indonesia entered the New Reform era, there is now a desire among some politicians and intellectuals to revive the concept of the Guidelines (GBHN) to guide development planning as it was once used under the New Order regime. The desire was based on the view that the current development planning has led to much turmoil, collision and no sustainability. This paper describes the Guidelines used for development planning in the reform era called Long Term Development Plan (RPJMN) is somewhat similar to the Guidelines (GBHN) in the perspective of theory of modernization development. Therefore, chaos, development planning collision is actually not caused by the absence of the Guidelines itself, but rather on the changes of the state power system into more horizontal system so that no state agency is able to fully control the development planning from the center down to regions, something which was done well in the era of the New Order. Keywords: GBHN, RPJMN, Modernist, Development. During a political debate in Jakarta late March 2014, the 3rd President of Indonesia, BJ Habibie recalled the importance of having a Broad Guidelines of State Policy (GBHN) to be revived1. In late January 2014, at a meeting with Golkar Party cadres, Habibie also reminded the same thing. "We are aware, in the absence of such Guidelines the development in Indonesia will not run well on the long run. So, I want to...
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...persisting high inequalities reveals that the increase in income tax revenue did not necessarily come from the upper income profiles or corporate profits. Meanwhile, although government expenditure to GDP ratio has improved after 2003, capital expenditures and social expenditures other than those in education continue to remain low. Further, the current pattern of fiscal decentralisation does not seem to be effective in addressing the existing disparities. JEL Classification H 200; H 500; H 700 Key Words Indonesia, fiscal policy, public finance, inequality, taxation, revenue, government expenditure, financial liberalisation, IMF debt conditionalities, decentralisation Smitha Francis is Principal Economist, Economic Research Foundation, New Delhi. Email for correspondence: smithafrancis@gmail.com THE IDEAs WORKING PAPER SERIES 01/2012 Fiscal Policy Evolution and Distributional Implications: The Indonesian experience Smitha Francis* I. Introduction Indonesia, the world’s largest archipelago-state and the fourth most populous, is a unitary country comprising central, provincial and local levels of government. Under the first president Sukarno (1950-65) and under the thirty...
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...professional life with a young family. He is married to Victoria's Secret model Miranda Kerr and they have an adorable two-year-old son Flynn. "I would love to take Flynn to see the pandas in Chengdu," revealed the 36-year-old. In an interview with the airline, he talks his and Miranda's favourite foodie cities, tips for combating jet lag and his love for London. Paper Edition | Page: 2 I have borrowed some words from Romeo and Juliet’s theme song and Harold Laswell’s phrase on politics for the title of this essay. In my view, these terms fit the issue well as the need mounts to embark on a different stage of reform in Indonesia. And yet, given the nature of the problems that appear to have hit all spheres of public life and mutated to all state agencies and officers, this nation seems to be confronted with a vicious circle in terms of where the reform movement should head. The recent survey results released by the Indonesian Survey Circle (LSI) suggested that the vast majority of Indonesians did not approve of the direction the country was heading in. Almost 60 percent of respondents took this stance, while around 30 percent said otherwise. These figures only serve...
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...When one collapsed, others follows too. That is what happened to Indonesia and other Asian countries like Philippine, Malaysia and Singapore. It started in Thailand when Thai government failed to defend the bath and end up raising huge debt. After that other Asian countries also started to face financial crisis due collapse of confidence in the ability to maintain their fixed exchange rates while continuing to allow the free movement of foreign finance capital at a time of increasing current account deficits. At first, Indonesia seems like not affected with what happened in Thailand but then, there are strong pressure on the Indonesian Rupiah and in August 1997, Indonesia Rupiah was set to float freely and it began depreciating significantly. At 1 January 1998, rupiah’s nominal value was only 30 percent of what it had been in June 1997 and it keeps getting worse day by day. Panic selling of rupiah for dollars by Indonesian companies with dollar-denominated debt showed that private foreign debt was far higher than previously thought. Even worse, the fact that Bank Indonesia was unaware of the extent of the debt showed its poor capacity to oversee and regulate Indonesia's financial markets. As Indonesia government unable to cope with the crisis, they decided to ask for financial help from International Monetary Fund (IMF) in October 1997. The first help from IMF were amounted total USD43 million to restore Indonesia market with some conditions which is included a number of conditions...
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...Economics and Management in Developing Countries INSEAD P4 Assignment MICROFINANCE in INDONESIA By Dewi BRAMONO Ming CHUNG Yoonmi EOM Kevin LAM Yenn Khan Executive Summary • • Microfinance in Indonesia can be traced back to more than a century ago, where village credit organizations (BKDs) offered small loans to villagers. Today, BRI unit desa of Indonesia is one of the most successful and profitable microfinance institutions in the world with more than 3.1 million borrowers with a gross loan portfolio of more than USD 1.7b as of Dec 2003. Indonesia’s successful experience in microfinance is further shown during the hard-hitting Asian Financial Crisis in 1997 to 1998. At a time when commercial banks were collapsing, savings in microfinance institutions rose from IDR 8 trillion in 1997 to about IDR16 trillion in 1998, as depositors sought the stability of these institutions. There are however some outstanding issues: o Inadequate outreach to the rural community o Politics impact the microfinance efforts negatively o Lack of awareness of microfinance among stakeholders o Microfinance may not be the answer for the poorest of the poor. Recommendations include: o Greater co-ordination required with the NGOs to target the poorest of poor, especially in the rural areas(through aid, training and provision of the infrastructure) o Increase the awareness of the benefits of microfinance, and to educate stakeholders accordingly. • • • Page 1 of 12 Economics and Management...
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...[pic] Assignment on Intellectual Property Comparison Between Developed And Developing Countries. Submitted to Fahmida Hasan Senior Lecturer Department of Business Administration Submitted by |Name |ID | |Rajib Kundu |2010-2-10-329 | |Rakib Hasan Rabbi |2010-2-10-300 | |Razuan Ahmed |2010-2-10-071 | |Almahmud |2010-2-10-048 | |Showrav hasin |2010-2-10-074 | |S M Mostafizur Rahman |2010-1-10-092 | Section : 1 Course No : BUS 361 Course Name: Legal Environment of Business Transmittal Letter April 4,2013 Fahmida Hasan Senior Lecturer Department of Business Administration, East West University ...
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...Indonesia * The Indonesian business environment is the least transparent of the HPAEs, and property rights receive the weakest protection. * Indonesia’s business environment constantly ranks below the fiftieth percentile among a group of fourteen newly industrial countries. * Indonesia’s reliance on informal social networks, instead of on predictable rules and procedures has resulted in private investment tends lagging behind those of East Asian neighbors. * Informal social networks emerged because of leadership’s need to nurture political support from the military, which was the only institution capable of governing the country. * The Armed Forces and the Rise of the New Order - Old government could not collect taxes, so it could not pay its officials and provide an adequate legal system, laws were out of date and the judicial system was dysfunctional. * With backing of military, President Sukarno declared martial law and restored the 1945 Constitution. Threatened that the military might threaten his position, he supported the rise of the PKI, Indonesia’s Communist Party, as counterweight to the military. This led to a power struggle between the army and, other elements of the armed forces, and the PKI, which eventually spun out of control. General Soeharto became head of state and the government became the glue that held together ethnically diverse groups. * The Technocrats and Regime Credibility – Under Soeharto, inflation was at an all-time...
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