President Jokowi in DC
President Jokowi’s visit to the US October 26 and 27, although shortened by the forest fire issue, included a longer than expected bilateral with President Obama, progress on security relations, a substantive unexpected announcement by President Jokowi on TPP (“Indonesia intends to join”), successful sessions with potential and current investors, and roll backs of unnecessary […]
New Deregulation Package
Indonesia has released the second of three deregulation/stimulus packages designed to boost a flagging economy and strengthen the exchange rate. The first (released September 10) was primarily an exercise in reducing red tape and regulatory confusion in the trade arena and did not garner a lot of attention and praise, perhaps because its hard to […]
The Meaning of Banggai
August 7, 2015 President Jokowi traveled to the Banggai Regency in central Sulawesi this week to inaugurate the $5.8 billion “Pertamina Mega Integrated Project”, which is planned to match the upstream production of natural gas with downstream users. The visit follows other forays of the President around the country to jump start other infrastructure projects […]
Idul Fitri Reshuffle
June 30, 2105 The serious Cabinet reshuffle rumors began in June: in Indonesia, they are part of the air one breaths. An underwhelming economic performance would prompt President Jokowi to reshuffle his Cabinet after Lebaran (end of the Muslim fasting month on July 18), especially his economic team. The economy is, given Indonesia’s potential, standing […]
Soekarno’s Echo
Indonesia’s first President became so frustrated with the “West” that he famously declared ” go to hell with your aid”. A combination of the Cold War and misjudgments of Soekarno’s complex ideology (mixing capitalism and socialism) led the US and other countries down several dead ends that almost capsized relations completely. The late 1950’s and […]
Backing Away From the Dollar
We are starting to see the glimmer of a new strategy for how Indonesia wants to do business and it may have less to with the US dollar. Foreign exchange ratios have been a hot topic among Indonesia’s policy makers ever since June of 2014 when the first news of the end of Fed easing […]
The Value Added State
President Jokowi is likely to travel to the US for his first official visit to Washington in early June. President Obama no doubt wants to hear Indonesia’s President describe his country, his plans for its economic future and how the US fits in. What might Jokowi tell President Obama about today’s Indonesia? He will […]
Outlook for 2015: Cautious Optimism
Commentary by Wayne Forrest Since taking office in October President Jokowi has not waited for Parliament, using his executive powers to reset Indonesia’s course. He is turning out to be savvier then many gave him credit for. 2015 could mark the beginning of a positive new chapter in Indonesia’s economic development. Although only a short […]
Which Tune is Playing ?
Commentary By Wayne Forrest If I could have a musical score as the backdrop to this commentary, I would want it to be something upbeat, perhaps the 1933 song “We’re in the Money”. Indonesia has a new, dynamic young leader, President Joko Widodo, with a strong reform agenda as well as operational experience at lower […]
Parliament Votes to End Direct Elections: Twists and Turns
Politics in Indonesia is about to become a whole lot more interesting. Late last Friday while President SBY was in DC –after addressing the UN Global Climate Change Summit in NY–Indonesia’s Parliament voted to end the direct election of district heads, mayors, and provincial governors. Touted in 2004 as a further improvement and maturation of Indonesia’s […]