Indonesian investments and international treaty law

New Zealand Prime Minister John Key gives a speech to the Indonesian Chamber of Commerce and Industry at a Business and Investment Seminar in Jakarta, Indonesia, 16 April 2012. (Photo: AAP)

Authors: Simon Butt, Luke Nottage and Brett Williams, University of Sydney

Indonesia’s new mining regulation requiring divestment of majority foreign investments is unlikely to generate many formal investor-state arbitration (ISA) claims against Indonesia, based on existing bilateral or regional FTAs, or investment treaties.

Avoidance of arbitration is primarily motivated by immediate pragmatic considerations. Read more…

Indonesia’s petrol prices: adding fuel to the fire

Banda Aceh residents are queuing up at a petrol filling station to refuel before leaving the area during the panic caused by the earthquake that shook the island of Sumatra, Indonesia, 11 April 2012. (Photo: AAP)

Author: Vikram Nehru, Carnegie Endowment

As Indonesia’s revised 2012 budget was being discussed in parliament in late March, thousands of people across the country protested the government’s plan to increase the domestic fuel price.

Amid news that the demonstrations were becoming increasingly violent, President Susilo Bambang Yudhoyono lost crucial support within his own ruling coalition and failed to push the vote through parliament. Read more…

Indonesian Supreme Court invalidates its own ethics code

Top Muslim militant Umar Patek faces the judges during his trial at Jakarta court. (Photo: AAP)

Author: Simon Butt, University of Sydney

Indonesia’s Supreme Court and Judicial Commission co-hosted a regional workshop on judicial integrity in late January, attended by senior judges from Southeast Asia and the South Pacific.

One issue discussed was the extent to which participating countries had adopted the Bangalore Principles of Judicial Conduct (2002), which outline widely accepted international standards of judicial independence, integrity and competence. Read more…

Indonesia must choose its direction in 2012

Former deputy of the Indonesian Central Bank, or Bank Indonesia Miranda, Swaray Goeltom talks to reporters at the Corruption Eradication Commission (KPK) offices in Jakarta on 30 January 2012. The KPK on 26 January named Miranda Swaray Goeltom a suspect in the 2004 vote-buying scandal at the House of Representatives. (Photo: AAP)

Author: Yasmi Adriansyah, ANU

Indonesians have reason to be both optimistic and pessimistic coming into 2012. The question is: which outlook is more likely to prevail?

In his New Year message, President Susilo Bambang Yudhoyono (SBY) requested that all Indonesians work to maintain order. Read more…

The Indonesian economy in 2011: a precarious balance

Workers prepare iron reinforcement bars at the construction site for an elevated road way in Jakarta on 14 April, 2011. Indonesia hosted an interanational infrastructure conference in the capital that week in an effort to attract foreign investors. (Photo: AAP)

Author: Thee Kian Wie, LIPI

Indonesia’s economic growth remained strong in 2011 despite continued turmoil in the international financial markets, due to the euro crisis, and weakened global growth.

Significantly, this slow down also affected China, which has become one of Indonesia’s major export markets, but Jakarta was able to see off this risk. Read more…

Durban climate talks bring mixed results for Indonesia

United Kingdom's Chris Huhne Secretary of State for Energy and Climate Change, speaks at the climate change conference in Durban, South Africa, 8 Dec. 2011. The head of the group of developing countries says the outcome of UN climate negotiations boils down to whether the two-tiered system of rich and poor countries should continue, or whether all nations should be treated more equally. (Photo: AAP)

Author: Fitrian Ardiansyah, ANU

Agreements achieved in the early morning of 11 December in Durban, South Africa appeared to salvage the UN climate talks — but have also raised questions about the commitment and capability of countries around the world to urgently tackling climate change.

After two weeks of difficult negotiations, governments involved in the 17th session of the Conference of Parties (COP-17) agreed to extend the Kyoto Protocol and negotiate a binding agreement for all countries to cut greenhouse gas (GHG) emissions. Read more…

International financial crises and the ASEAN economies

Public road infrastructure and building construction rise up at Indonesia's capital city of Jakarta on December 12, 2011. A week earlier The Asian Development Bank trimmed its 2012 growth forecast for emerging East Asian economies as the eurozone turmoil threatens to drag the global economy back into crisis. (Photo: AAP)

Author: Arief Ramayandi, ADB

The slow resolution of the European debt crisis has evolved into a liquidity problem which threatens the global financial system.

And these long-drawn-out efforts to address the sovereign debt problems have heightened uncertainties about resolving the crisis and induced speculative activities, threatening the survival of many European banks. Read more…

Measuring the success of Indonesia’s involvement in Durban

Delegates walk outside the International Convention Center during the High Level Segment of the COP 17 / CMP 7 United Nations (UN) Climate Change Conference 2011 in Durban, South Africa. (Photo: AAP)

Author: Fitrian Ardiansyah, ANU

The global climate change negotiations — underway from 28 November to 9 December in Durban, South Africa — have people asking once again whether countries around the world will agree on solutions to tackle climate change.

It is also an appropriate event to assess the involvement of developing countries like Indonesia, and particularly to understand whether their involvement in this UN climate conference will significantly contribute to a successful outcome. Read more…

Eastern Islam and the Arab Spring

Pakistani and Afghan refugee children attend a daily class on how to read verses of the Quran, in a mosque in a slum on the outskirts of Islamabad, Pakistan, on 30 November 2011. (Photo: AAP)

Author: Vikas Kumar, Bangalore

In the aftermath of the Arab Spring, commentators on East Asia Forum have highlighted the moderate character of Southeast Asian Islam.

Bahrawi argues that contested interpretations of Islam are democratising Islam in Southeast Asia — but similar contests seem to be ineffective in countries like Pakistan. And van Bruinessen argues that large, resilient Islamic organisations are stabilising Indonesian democracy — but comparable organisations are failing to play such a role in other Islamic countries. So are local factors playing a bigger role in Southeast Asia than is usually suspected?  Read more…

Does India really need a National Manufacturing Policy?

Labourers work in the paint shop of a production line at the General Motors India (GMI) manufacturing plant in Halol, India. (Photo: AAP)

Author: Suman Bery, IGC

The Indian government presented its National Manufacturing Policy (NMP) to the nation in early November.

Presumably, the announcement was timed to demonstrate that reform is alive and kicking before parliament reconvenes later this month. With the final text now available on the Department of Industrial Policy and Promotion website, it is possible to take a considered view of the policy’s goals, the means proposed to achieve them and the probability of success. It is also possible to speculate on the unintended consequences and possible collateral damage.

Read more…

The US in the EAS: implications for US–ASEAN relations

US President Barack Obama applauds with Southeast Asian leaders, Indonesian President Susilo Bambang Yudhoyono (L), Philippines President Benigno Aquino (2nd L) and Brunei Sultan Hassanal Bolkiah (R), during a group photo session for the leaders of the East Asia Summit in Nusa Dua in Bali, Indonesia, on 19 November, 2011. (Photo: AAP).

Author: Ralf Emmers, RSIS

The US recently participated in the East Asia Summit (EAS) for the first time — a decision that has wider implications for US–ASEAN relations.

The decision to join the EAS is part of a recalibration of US foreign policy vis-à-vis ASEAN-led multilateral institutions. This shift in policy reflects a broader attempt by the US to re-engage with Southeast Asia — after years of perceived indifference — and is equally related to China’s growing influence in the Asia Pacific region. Read more…

The sixth East Asia Summit: keeping up the neighbourhood

Foreign ministers and government officials attend the US-ASEAN Regional Forum in Nusa Dua in Bali on 23 July 23 2011. (Photo: AAP)

Author: Maria Monica Wihardja, CSIS, Jakarta

The sixth East Asia Summit (EAS) will take place on 19 November in Bali, with its newest members — the US and Russia — breathing new life into the forum.

While the Summit’s original objective of serving as a forum for dialogue on broad strategic, political and economic issues remains important, the US and Russia’s inclusion has now opened an opportunity for greater geopolitical security dialogue. Read more…

The prospect of democracy and peace in Aceh

Irwandy Yusuf, a former GAM (Free Aceh Movement) rebel imprisoned during the conflict with the Indonesian government and now a candidate for governor of Aceh province, casts his ballot in Banda Aceh, Indonesia.

Author: Badrus Sholeh, Deakin University

The Indonesian province of Aceh is due to hold its gubernatorial elections in December 2011.

These elections highlight the significant contribution democracy has made to the maintenance of peace since Aceh’s 2006 elections — which were held a year after the peace agreement between the Freedom Aceh Movement (GAM) and the Indonesian government. Read more…