Economics, Politics and Public Policy in East Asia and the Pacific
Author: Anwar Nasution, University of Indonesia
Earlier this year, Bank Indonesia (BI) issued a package of nine regulations that indicate the Indonesian government is taking a new nationalistic approach to the financial sector.
The package provides more protection to domestic banks, particularly public sector banks, by imposing more restrictions on foreign banks. But will the new regulations help Indonesia? Read more…
Author: Fauzi Ichsan, Standard Chartered Bank
In the past few years Indonesia has seemed to be on economic autopilot.
Despite slower global economic growth in 2011 and 2012 (amid the euro and US fiscal crises) and with an increasingly ineffective government and parliament consumed by high-profile cases such as the Bank Century bailout and corruption in key ministries, Indonesia managed to record 6.2 per cent GDP growth in 2012. Read more…
Author: Awidya Santikajaya, ANU
Indonesia is currently the world’s 16th-largest economy by GDP, and is predicted to become the seventh largest by 2030. Many have billed Indonesia as ‘a rising middle power’ — but how will, and should, Indonesia’s (perceived) rise impact on its foreign policy posture?
Author: Ganeshan Wignaraja, ADBI
Indonesia, ASEAN’s largest economy, faces a growth dilemma. Faltering growth has prompted the introduction of new restrictive trade and investment measures.
Yet such policies have historically had little success in connecting enterprises with global value chains. Read more…
Author: Herfan Brilianto, Jakarta
Indonesia assumes the 2013 APEC chair as the Asia Pacific economy faces a challenging 12 months.
Indonesia’s choice of APEC theme, ‘Resilient Asia-Pacific: Engine of Global Growth’, reflects concern over downside risks that need to be managed if the regional economy is to achieve sustainable growth. Read more…
Author: Fitrian Ardiansyah, ANU
Avoiding and reversing the loss and degradation of forests is a crucial element of any sustainable development and climate change solution formulated in Southeast Asia.
Southeast Asia’s forests contain some of the richest and most valuable resources and habitats on earth. Read more…
Authors: Julius Cesar I. Trajano and Yoes C. Kenawas, RSIS
Indonesia and the Philippines, the biggest democracies in Southeast Asia, both face a significant threat to the vibrancy of their political systems — the rise of political dynasties.
In both countries, dynasties persist because the families use patronage networks, wealth and — in some cases — violence to hold onto power. Read more…
Author: Beginda Pakpahan, UI and University of Edinburgh
The political and economic situation in Southeast and East Asia has forced Indonesia to clearly define its relationship with ASEAN and the East Asia Summit (EAS).
Indonesia needs to develop a more cooperative stance and transform its traditional diplomatic approach to a more pluralistic one. Read more…
Authors: Maria Monica Wihardja, CSIS, and Reza Siregar, AMRO
Tremendous progress has been made toward achieving the 1994 APEC Bogor Goal of an integrated region of free and open trade and investment by 2020.
Despite some sensitive sectors (such as the agriculture sector), APEC’s most favoured nation average tariff had fallen to less than 6 per cent as of August 2012. Read more…
Author: Adhi Priamarizki, Nanyang Technological University
With Indonesia’s national legislative elections approaching in 2014, Islamic parties have signaled a pragmatic shift to the centre to garner popular support.
Their party platforms no longer feature the establishment of sharia law and other Islamic agendas, Read more…
Author: Arianto Patunru, ANU
Indonesia’s economy had a good year overall in 2012.
Growth remained above 6 per cent despite the global economic slowdown, inflation stayed under 5 per cent and the fiscal deficit below 2 per cent of GDP. Read more…
Author: Thee Kian Wie, LIPI
Corruption in Indonesia is pervasive.
It exists at all levels of the executive branch of government (central, provincial and local), and in other institutions including the parliament (central and local), the attorney general’s office, the police force, and the judiciary.
Authors: Vivi Alatas, Ririn Purnamasari and Matthew Wai-Poi, World Bank
The rate of poverty reduction continues to slow in Indonesia, despite sustained economic growth. With the exception of the 2006 increase in poverty due to the international food price crisis, the decrease in the official poverty rate from 12.5 per cent of all Indonesians in 2011 to 12 per cent in 2012 was the smallest since 2003.
Efforts to reduce poverty often fail to address the issue of Indonesia’s economically vulnerable population. Read more…
Author: Kodrat Wibowo, Padjadjaran University
Labour unions have organised strikes in most major cities in Indonesia in recent months, demanding a higher minimum wage for workers.
The minimum wage in Indonesia is determined by consensus in a tripartite forum between three major actors in the labour market: unions, employers and local governments. Read more…
Author: Thee Kian Wie, LIPI
Despite slower global growth and continued uncertainty in the global financial market, Indonesia’s economic growth remained strong throughout 2012.
Indonesia’s GDP, while slowing down slightly, still grew by 6.2 per cent year-on-year (yoy) during the third quarter of 2012, which was slightly lower than during the second quarter, due to the continuing slower growth of exports. Read more…