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globe asia

Published by BeritaSatu Media Holdings

Category: Business, Finance & Economics

Edition : Nov 2016

Pages : 100

ISBN : 9-771978-055965

Published : 18 Nov 2016

Innovate or perish

Over the past decade, the world has witnessed a great transformation. Developments in information technology, artificial intelligence, big data analytics, e-commerce and the sharing economy are changing the way we learn, work, shop and travel.

At the heart of this transformation has been the emergence of new industries that have utilized the power of the crowd through big data analytics and artificial intelligence. As a result, we are upending long established industries and business processes. This transformation provides huge opportunities but also presents societies with enormous challenges.

Indonesia must be part of this process. We must contribute to this global movement with our own ideas, initiatives and products. Indonesia cannot afford to sit back and merely consume what the rest of the world offers. This means that as a society we must adopt an innovation culture that embraces change, even if that change disrupts our established thinking.

Innovation drives progress and improves productivity and ultimately helps improves our standard of living and determines the quality of life.

In the 21st century, innovation will continue to drive economic and social progress. This has always been the  case but now science and technology are advancing at mind-boggling speed and the possibilities of innovation are truly infinite. 

Imagine if through digitalization  we can provide affordable healthcare  to all 250 million Indonesians?  What if we use big data analytics to predict future trends and thus sharpen public policymaking?

But even within this constant and rapid change, certain goods and services will always be needed. Textiles and garments will never become sunset industries but factories and companies that do not embrace technology and automation may fade away. This is where Indonesia, with its large manufacturing base, relatively cheap labor and a vast consumer market can play a leading role.

The internet and the ability to garner and analyze big data have the potential to break down the barriers to more robust economic growth. But in these changing times, both government as well as the private sector must be more agile in their thinking and actions.

We cannot afford to be rigid and close-minded. Policymakers must allow entrepreneurs to test new ideas without restricting them, especially in new areas where there are few or no  established rules. Entrepreneurs and investors on their part must be bold and innovative.

Our economy and our society face many difficult  challenges ahead.  We must innovate or perish.

Shoeb Kagda

Editor in Chief

IDR 4.000,00


  • Globe Asia - Setya Novanto – New Golkar Chief Means Business | Globe Asia

    Businessman and politician ready to lead the second largest political party The election of Setya Novanto as Golkar Party’s new chairman in May opened a new chapter in the long-running saga of Indonesia’s oldest political party. One of his first moves was to throw the party’s weigh

    t behind President Joko Widodo.


    The third generation starts to make its mark Indonesia’s wealthiest families continue to do well despite challenging global and domestic business environment  


    Growth of e-commerce Indonesia needs a new engine to fuel economic growth. With commodities having slumped and manufacturing still  to take off, much hope is being placed on consumption to be that new engine.   And with more and more Indonesians turning to the internet on their smartphones

    , e-commerce could just be what Indonesia needs to boost economic growth and raise living standards across the archipelago. According to the Asian Development Bank (ADB), countries with heavily congested cities see rapid growth of e-commerce as people spend more time with their mobile devices while

    stuck in traffic to chat and shop online.   E-commerce is just taking off in Indonesia and the country lags behind other Asian economies. In China, e-commerce contributed between 9% and 10% of gross domestic product (GDP) in 2015, compared to less than 1% in Indonesia.   Indonesia’s

    e-commerce market was estimated at Rp18 trillion ($1.2 billion) in 2015 with 37 million consumers from a total population of 255 million. This is still relatively small but it is growing fast, up from Rp12 trillion and 27 million consumers in 2014.   The Internet Service Providers Association e

    stimates that the e-commerce market will reach Rp25 trillion with 49 million consumers in 2016. Such figures indicate that the e-commerce market is ripe for growth. Currently there are a clutch of e-commerce players in the country with and Lazada being the top two e-commerce firms.

      Size alone, however, is no guarantee  for success. Market knowledge, efficiency and security of payments are critical factors for success. Consumer trust and brand awareness are the most important ingredients.   Bridging the gap As MatahariMall.Com CEO Hadi Wenas notes in our cover

    story, e-commerce is opening up the country and allowing Indonesians from all corners to buy merchandise online which may not be available where they live.   MatahariMall.Com already receives orders from more than 400 cities across the archipelago. It would not have been possible for brick and

    mortar retail players to have such reach as it would be just too costly to open stores in every small town and village.   Thus e-commerce is bridging the gap between the urban and rural areas. E-commerce allows every Indonesian with access to the internet to shop online and even transact busine

    ss online, which is critical for hundreds of small- and medium-sized companies.   So beyond just boosting retail sales, e-commerce has the potential to also boost the manufacturing sector if it enables more companies to sell their merchandise at competitive prices. The internet has changed how

    we live, work and play.   Now with e-commerce starting to grow in Indonesia, it also has the potential to take the economy to the next level of growth.   Shoeb Kagda Editor in Chief

  • Globe Asia - Digital Solution For SME | Globe Asia

    I t is fast dawning on both the government and the private sector that Indonesia’s small and  medium enterprises (SMEs) need to be empowered to join the digital age if Indonesia’s economy is to grow sustainably in the coming years.   SMEs form the backbone of the national econo

    my but have been largely ignored in the push to develop a digital economy. Until now that is.   There are an estimated 55 million SMEs in the country although a large chunk of these are small mom and pop stores. Nevertheless, there are still a large number of SMEs that employ between 20 and 100

    staff and have a turnover of more than Rp10 billion a year.   Getting these enterprises on a digital platform, according to analysts, would add an extra 2 percentage points to gross domestic product (GDP).  President Joko Widodo, on a recent trip to Silicon Valley, emphasized the need to

    empower SMEs by helping them digitalize. But that will be easier said than done.  The SMEs are spread across many islands  and often operate in smaller cities. They are handicapped by lack of access to capital and expertise to handle ICT and technology. 

  • Globe Asia - Joko Widodo Transformational President | Globe Asia

    The man of the people is leading Indonesia into a brave new world.  

  • Globe Asia - POWER 50 | Globe Asia

    Indonesia Economic Forum 90 A historic opportunity for Indonesia The rise of the digital economy and acceleration of infrastructure development were the key themes at this year’s Indonesia Economic Forum (IEF). With speakers from the region and around the world, the IEF provided an ideal platf

    orm for business leaders, policymakers and investors to gather to discuss both the opportunities as well as the challenges that confront the nation.

  • Globe Asia - The Future Economy | Globe Asia

    “I think its great that the theme of your Indonesia  Economic Forum is heavily flavored with the digital economy. That is another  perfect example of a bright spot in the economy.”   Tom lembong minister of Trade

  • Globe Asia - 100 Top Groups | Globe Asia

    Indonesia needs to be more competitive Words can often take on  a force of their own.  Once uttered, they cannot  be withdrawn.   Over recent weeks the  government of President Joko Widodo has been busy meeting business leaders, economists, academics and bankers to get a bet

    ter sense of what is ailing the economy.   As Suryo Bambang Sulisto, the chairman of the Indonesian Chamber of Commerce and Industry (Kadin), put it at a recent gathering of business leaders, “we need to get the real pulse of the economy.”   But how does one get the real pulse

    of the economy? For the government, it should be through mining data and looking at fundamental indicators as well as by talking to business. For the businessmen, it is studying the bottom line and sales orders.   So the question then is does anyone know what is truly ailing  the Indonesia

    n economy? There is no doubt that the broad economy  is struggling.   Consumption, the key driver of gross domestic growth over the past few years, is slowing rapidly. Across the board, consumers are tightening their belts and sales are down by 30% for goods and services.   The govern

    ment says part of the problem has been an over-reliance on imports, which has raised the current account deficit. Indonesia imports too many goods and services and does not produce enough domestically.   So import substitution has become a buzz word. At a recent event, the head of the Sahid Gro

    up told the audience that Indonesia must slash the import of manufactured goods if the country is to regain economic vigor.   But import substitution in many circles is a pseudonym for protectionism and economic nationalism. Growing economic nationalism is seen as a threat to Indonesia’s

    long-term economic future as it raises trade barriers and encourages poor standards.   If more and more Indonesians utter the words “import substitution” the words will take on both economic force as well as social dominance. Anyone arguing against this policy will be tainted as unp

    atriotic and anti-Indonesia.   No nation wishes to have its economy and currency controlled by an outside force. Every elected government has a duty to protect the self-interest of the country and the people. President Joko Widodo too has a duty to ensure that his government’s policies ul

    timately benefit the Indonesian people.   The challenge is how does one achieve this goal? Is import substitution the best way to do it? Or is keeping an open economy, encouraging competition and  prioritizing industries in which  Indonesia has a clear economic advantage the better pa

    th to take?   Shoeb Kagda Editor in Chief  


  • Globe Asia - 150 Richest Indonesians | Globe Asia




    SWEET SUGAR MAKER | Lie Kamadjaya,  47, has developed a modern new sugar  plant in Blora, Central Java and  plans a new one for madura in east Java. he has Been working toward this point for 30 years, with farmers BeComing an important  part of his Business  model. But while

    the  government says it wants to promote  self-suffiCienCy, he says it is going aBout it  the wrong way in the sugar industry


    king of the skies Rusdi Kirana proved his skeptics wrong by building Lion Air into the country’s largest carrier. Now as he seeks to expand into infrastructure by building airports, he is raising the bar for his rivals.

  • Globe Asia - Man Of The Year Basuki Tjahaja Purnama | Globe Asia

    Ahok, Indonesia’s Shooting Star  Basuki Tjahaja Purnama has seen his profile among the Indonesian public rise meteorically. Now he has the task of proving himself a worthy leader for the capital city after Joko Widodo becomes president.

  • Globe Asia - The Power 50 List | Globe Asia

    Jokowi the great salesman President Joko Widodo did a fantastic job of selling the country to investors during his three- summit introduction to the big global stage during November. And, like many salesmen, he made a lot of promises about the ways in which the country would change.   Addressin

    g the APEC CEO Summit in Beijing, he acted like a true businessman by presenting his ideas with an effective PowerPoint presentation. The question now is whether – like many other salesmen – he can deliver on his promises.   He has to fight on three fronts to get Indonesia into shap

    e. He has to persuade or cajole the House of Representatives to accept his initiatives. He has to make sure that his own ministries manage the process of change that’s needed to make the country a competitive climate for investment. And he has to convince the regional governments to do their p

    art in encouraging investment.   There is a lot to be done. The World Bank’s Ease of Doing Business Index ranks Indonesia at a lowly 114 out of 189 countries. In our neighborhood, that is a very poor showing. Singapore is at the top of the list, way out of Indonesia’s league. More r

    elevant is the comparison with Malaysia at 18, Thailand at 26 and Vietnam at 78. We’re better than Cambodia at 135, but that’s not much  compensation.   Hiking Indonesia’s reputation as a place to do business up to the level of at least Thailand – one of our stronge

    st competitors in the region – is going to take hard work and good coordination.   We have to ask, is our process of bureaucratic reform going to be effective? If not, then we will struggle to compete. Are the ministers capable of doing their jobs of transforming the sectors they are resp

    onsible for? Will they give up old habits of cross-sectoral jealousy and work together?   Can the president convince the regional governments, particularly those dominated by the opposition Red and White Coalition, that they should follow his plans? Will the government be capable of dealing wit

    h all of the many factors required should there be a flood of investment, or will there be a log-jam, with long queues for permits, utilities and human resources?   In his appearances at APEC, ASEAN and the G20, President Jokowi did an excellent job of ‘selling’ the country, but it

    remains unclear whether the conditions are in place for buyers to arrive, cash in hand. Let’s hope that he hasn’t sold a lot of units in an apartment block that is just an architect’s dream.   The president has demonstrated that he is a strong leader, but he will need all of h

    is abilities to make sure that the process of reform of the bureaucracy, the provision of power and other utilities and other factors moves in the right direction. He has to demonstrate that he can be a captain capable of leading the national team to victory.   A failure to achieve good coordin

    ation and action on so many  different fronts will only create a nightmare for investors. And if word gets around that Indonesia is still a bad place to do business, brilliance as a salesman will not be enough to get investors back again.   Tanri Abeng Publisher of GlobeAsia  

  • Globe Asia - The Rise Of The Customer Class

    Over the next few decades, the world economy will be dramatically transformed. The digital revolution will have created new industries and killed many established ones.  How will Indonesia fare in this new digital age?  

  • Globe Asia - The Power TRIO


  • Globe Asia - Joko Widodo THE DAWN  OF A NEW ERA

    It has been an exhilarating ride but after the ruling of the Constitutional Court affirming  the Jakarta governor’s victory in the July direct presidential elections, hopefully the focus can now shift once again from politics to business. Joko Widodo will be sworn in as the nation’s

    seventh president in October.   The president-elect moved swiftly to allay any fears of political division and paralysis under his administration by declaring that Prabowo Subianto and Hatta Rajasa, The losing presidential pairing, are his “best friends.” That statement May be stre

    tching the truth a little after a bruising election and postelection battle, but Jokowi has laid the grounds for a possible reconciliation. Politics will still be top of mind for the next few months and into the early months of the new administration.   The new president will need As many allie

    s in parliament as he can get if he is to pass his ambitious  reform program. But given his savvy and willingness to reach out, the signs are optimistic.   Political certainty will be good for business. For the best part of this year, business and the economy have taken a back seat as the

    country has focused on the two major elections. Now hopefully it can turn its attention back to business and getting the economy back on a solid growth path.   The new president will have his plate full. He will have to move quickly to address the fuel subsidy issue by rising prices in a contro

    lled manner. There is now wide acceptance that the country simply cannot afford to continue to subsidize fuel, both for fiscal reasons as well as for social and economic reasons.   As such, as argued by the chairman of the Indonesian Chamber of Commerce and Industry in this issue (see page26),

    a new energy policy is urgently needed. The reliance on costly fuel imports has to stop before it bankrupts the country and sets it backwards.   Anew energy policy that focuses on more efficient consumption, greater diversity of energy sources and better distribution will encourage more investm

    ents and promote new industries. It will lead to innovation And research, which will ultimately benefit all Indonesians.   President-elect Jokowi has also explicitly noted that he will not enter into horse-trading for cabinet positions and that cabinet ministers cannot hold party positions. Thi

    s will ensure greater professionalism and limit political agendas within the cabinet, leading to better decisionmaking on critical issues. We hope that he keeps to his word. The business community is looking forward to a possible new era under the next president. He has  much work to do and man

    y hurdles to cross but if he can remain true to his campaign promises there is great hope for the future.   Shoeb K. Zainuddin Group Editor in Chief

  • Globe Asia - 100 Top Groups

    Indonesia will soon have a new president. As this issue went to print, indications were that  Jakarta’s non-active governor Joko Widodo had won the July 9 presidential elections with more than 52% of the vote. We will, however, still have to wait for the official result from the General E

    lections Commission and a possible legal challenge.   No matter who is ultimately installed in the State Palace as the next president of Indonesia, he will face some daunting challenges. Outgoing President Susilo Bambang Yudhoyono has laid the foundations for macroeconomic stability over the pa

    st 10 years. Indonesia now needs to push on with more micro-oriented policies that help businesses compete and increase their output.   As things stand, Indonesia can grow by an average of 5% to 6% per annum. That rate of growth cannot support democracy in terms of creat-ing well-paying jobs fo

    r the two mil- lion Indonesians who enter the workforce every year. The next president and the new parliament will have to work together to create a range of policies that are specifically targeted to boost business competitiveness.   The top priorities for the next president must be bureaucrat

    ic reform and cutting the fuel subsidy. The Economy too needs to be restructured and gently moved away from dependence on cheap energy, which has distorted business costs in the past. There has been minimal infrastructure implementation, limited oil and gas development and little progress on manufac

    turing expansion, according to a report by CLSA Indonesia.   The report noted that if Joko Widodo is installed as the next president, he could be expected to push these reforms given his record of efficient implementation, good negotiating skills and readiness to tackle bureaucratic inefficienc

    y.   These steps will be crucial for the country as the external environment is expected to be more challenging in the coming months. The United States is in the process of winding down its quantitative easing policy– the policy of printing money to pump into the economy – which in

    turn will lead to rising interest rates globally. This means that Indonesian corporations will face higher borrowing costs if they intend to expand or invest in new plant and machinery.   The 2014 direct presidential elections have been a watershed event for Indonesia. The close fight between t

    he two presidential candidates has been good for democracy and has offered the Indonesian people a real choice. The challenge now is to move ahead and undertake the more difficult task of building a deep and vibrant economy.   For This to happen, the business sector has to be involved and empow

    ered in  policymaking. More crucially, it must be provided with the incentives to invest for the long–term.    Shoeb K. Zainuddin Group Editor in Chief

  • Globe Asia - Rp 15 Trillion Pulsa Man - Hengky Setiawan

    Hengky Setiawan has risen from zero to IPO. In an interview with GlobeAsia’s Denverino Dante, he reveals how he has managed to maintain his title as the undisputed king of mobile phone pre-paid vouchers for almost a decade. Hengky Setiawan looks out from the 16th floor of his new Telesindo Tow

    er across the street to the old two-storey shophouse in Jakarta’s Kota area where he started out in business. Sporting a polo shirt and black pants with an Audemars Piguet Royal Oak watch on his wrist, the president commissioner of PT Tiphone Mobile Indonesia Tbk. (Tiphone) comments that &ldqu

    o;We just moved in here five months ago.”  Hengky seems to have a penchant for the number 16. Telesindo Tower has 17 floors, but he prefers the floor below the very top. His house in Pantai Mutiara in North Jakarta is number 16 and the address of Telesindo Tower itself is Jl. Gajah Mada n

    umber 16.

  • Globe Asia - Rising Son

    Change agents They are young, educated at the best universities in the world and the scions of Indonesia’s richest families. Their fathers and grandfathers built the family business and soon these businesses will pass on to them. How will they lead? Will they transform the companies they inher

    it or will they be content to continue business as usual? From most accounts, the next generation of leaders of family-owned businesses will burn their own paths to success. They will not be content to simply occupy the office and allow their managers to make all the important decisions.   As A

    rif P Rachmat, the son of Triputra Group founder Teddy Rachmat tells GlobeAsia, leadership is the vital ingredient needed to build and sustain a successful corporation. The same applies to the nation. Not only is Arif concerned about the future of his family and business, he is just as concerned abo

    ut the future of his country.   Arif is not alone. A whole new generation is rising, poised to play a leadership role in their companies and in their country. They are increasingly stepping out of the old boundaries, and taking to the global stage. They participate in international forums such

    as the World Economic  Forum; they sit on the boards of organizations that are global in their reach; and they pay careful attention to issues such as environmental degradation and inclusive growth.   They understand that business, especially family-owned companies, have a role to play in

    nation-building. They cannot afford to cocoon themselves in their private worlds and shut their eyes to what is happening around them. They know that if they want to ensure the continuity of their family business, they must also ensure the prosperity of the country as a whole.   Income inequali

    ty is the single biggest threat to the continuing economic prosperity of Indonesia. If the rich-poor divide widens, social stability will be at risk, which in turn will lead to the collapse of the political system. No business owner will want that to happen because ultimately it will lead to the dem

    ise of business itself.   So as they assume the helm of their family firms, these young leaders must also play an increasingly wider social role. They must lead change not just within their own organizations but also within society at larger and even in government. In the past, business owners

    focused on creating jobs, which helped support families. In today’s world, they must also be catalysts for social change.   With their ideas, energy and passion, they can affect mindset shifts across society. So while they continue to grow the  businesses their forefathers built &nbs

    p;from scratch, they need to also address the challenges faced by the country.   Shoeb K. Zainuddin Senior Editor



  • Globe Asia - 10 Most Profitable SOEs

    A new era for SOEs? State-Owned Enterprises (SOEs) play a vital role in the Indonesian economy.  That is a fact. The question now is, how competitive would SOEs be without state subsidies and special privileges?   As we point out in this issue’s cover story, if SOEs are managed well

    and are equipped with visionary leadership, they can do well. Garuda was a loss-making state carrier for years until the appointment of Emirsyah Satar, who not only turned the struggling national carrier around but is propelling the company toward a role as a global player.   Other CEOs such as

    Sofyan Basir at Bank Rakyat Indonesia (BRI) and Budi Gunadi Sadikin at Bank Mandiri have also shown that they have the guts and the skills to manage large commercial entities profitably and in line with global best practices.   This is the crucial point: Whether companies are privately owned o

    r state-owned, they must be managed according to sound commercial principles.There are currently 141 SOEs in Indonesia. They hold $300 billion worth of assets and generate an estimated $150 billion in revenue each year. While an increasing number of these enterprises are turning a profit, many remai

    n debt-ridden and dependent on state subsidies. This must change if Indonesian SOEs are to compete on par with the private sector.   SOEs are present in just about every sector of the economy from banking and finance to telecommunications and transportation, to manufacturing and oil and gas. Th

    ere are SOEs operating in the agricultural sector providing subsidized fertilizer to farmers.   There are some who argue that SOEs, because of their vital role in the economy, should not be judged purely on profit. Instead there should be different criteria for evaluating just how effective and

    important an SOE is since it may be operating in sectors or areas where private enterprises are not present.   This does not mean that there should be an absence of competition and that SOEs should be allowed to operate in a monopolistic environment. It has been proven that if SOEs are forced

    to operate in a competitive environment – aviation and telecommunications come to mind – they not only hold their own but also excel.   Both aviation and telecommunications are highly competitive sectors with multiple players and yet both Garuda and Telkom have done well and expande

    d their reach. Merpati Nusantara Airlines, on the other hand, has been an expensive disaster.   The Indonesian economy is undergoing rapid change. The country’s corporate sector can no longer hide behind protectionist barriers, especially with the ASEAN Economic Community (AEC) now a litt

    le over a year away. SOEs too must march to this new tune and adapt. They must reform, adopt global best practices and compete on par.   Shoeb K. Zainuddin Senior Editor

  • Globe Asia - Investing In Indonesia

    When GlobeAsia picked Jakarta Governor Joko Widodo as its Man of  the Year back in January, we were looking ahead. The governor had taken the capital by storm and now it looks likely that he will also take the country by storm.   The opposition Indonesian Democratic Party of Struggle annou

    nced on March 14 that Widodo, widely known as Jokowi, would be its presidential candidate in the July 9 presidential election.   The governor, with his “man of the people” touch and simple ways has captured the imagination of the Indonesian people. He is not afraid to get tough on l

    azy civil servants or stand up to religious intolerance. He is willing to roll up his sleeves and get personally involved with projects such as persuading slum dwellers to move to government low-cost housing or relocating the street vendors of Tanah Abang.   Jokowi’s rise from his humble

    roots in Solo to possibly the top job in the land is the stuff of dreams. He has shown that through hard work,leadership and courage, every Indonesian can rise to the top.   The governor’s presidential candidacy was also warmly received by the markets, with stocks rallying on the day the

    announcement was made.Coincidentally, the rupiah has also rallied over the past few weeks.   The question now among investors and business people is whether Jokowi’s populism means he is anti-business. Will he push policies that hurt the business environment but please certain segments of

    his supporters? Will he give away too much in terms of government largesse with negative implications for the state budget?   Jokowi did approve a 44% minimum wage increase in 2013 but he has also proved that he has common sense. When unions pushed for another huge wage increase this year, he

    was able to rebuke them for ignoring economic reality and restricted the wage increase to 11%, all without much fuss or demonstrations.   He has also kick-started the long-delayed MRT system and has continued the building of toll roads. The governor has also been a strong critic of the “c

    heap car” initiative, arguing that Jakarta’s streets are too heavily congested.  The business community is unsure of how the governor, if he does become president, will deal with them. Will he launch new initiatives to boost the economy and empower the private sector? Or will he dis

    h out lucrative contracts to his friends and cronies? Our cover story subject,   Alim Markus, for example, is a self-made successful businessman and he wants to help boost the economy by investing in smelters. The next president must work with business people like him. The governor has said he

    is not anti-business and in fact the reason he entered politics was to cut  red tape and help the small- and  medium-sized entrepreneur. As he hits the campaign trail, he will have to spell out his ideas and visions with greater clarity.   Shoeb K. Zainuddin Senior Editor

  • Globe Asia - Exclusive Interview : ARBnomics

    ARBnomics Veteran businessman-cum-politician Aburizal Bakrie was upbeat  when GlobeAsia’s Yanto Soegiarto and Albert W Nonto met him  at his 46th floor office for an exclusive interview during a gap in his busy schedule. He shared his vision of what is best for the country, his list

    of  jobs that need doing and his priorities if he gets elected.   Aburizal Bakrie, or ARB as he now wants to be called, is busy these days, shuttling back and forth to the regions to consolidate his powerful Golkar Party ahead of the upcoming legislative elections and garnering support for

    his bid for the presidency. With his background as a businessman and in government as coordinating minister for the economy and then social affairs, it is  hardly surprising that economics is high on his agenda as the elections loom closer.   Underlining his intentions if he is elected to

    the presidency is the belief that Indonesia needs to manage its economy correctly by not being too conservative in its monetary and fiscal policy, while sustaining sound macroeconomic fundamentals.   “As an example, look at the debt issue. Our debt stands at 25% of GDP. People make a lot

    of noise about our huge debt. They want to lower it by 3%. No other nation, or just a few, has such a small ratio of debt to GDP. Usually it’s 60% or it could even be 300%. My point is that we don’t have to worry about our debt-to-GDP ratio. If we have a $1 trillion economy, 1% would me

    an $12 billion, 2% would mean $24 billion. For me, a debt-to-GDP ratio of 30% is good,” ARB said. He brushed aside talk that Indonesia’s debt will be a burden for future generations. “We are missing Rp250 trillion in development opportunities with our fear of debt,” he respon


  • Globe Asia - Outlook 2014 - How Politic Will Impact GDP Growth?

    Quality democracy As we approach the elections, GlobeAsia’s most pressing concern Is the value of our democracy, and the quality of the legislators it produces. The elections themselves will be an important step in Indonesia’s course as a nation, but it is the capacity of those we elect

    that raises doubts.   The Indonesian people are getting smarter about who they choose, and there is much debate at every level of society about who will make the best president come October. Yet there is less comprehension of the workings of the House Of Representatives, And less attention to

    the caliber of those we place there.   How should we, the people, improve the quality of our legislators and, indeed, our presidential candidates? If Yuzril Izha Mahendra’s challenge to the Presidential Election Law at the Constitutional Court succeeds, restrictions on candidacy would be

    thrown out, opening the field to a wide range of hopefuls with the net result of confusing the public.   So far, the political parties have tended to opt for popularity above talent. Electors Have been offered a choice of candidates who are attractive, but not necessarily competent. The Electio

    n of a new crop of political neophytes risks the creation of yet another parliament whose members lack grounding and experience.   Many will have only a high-school diploma, and many will have a very limited supply of the expertise needed to Make a positive contribution to national   devel

    opment. The Constitutional Court has demonstrated Without a shadow of doubt that many of our laws are flawed. It Is a sad joke that our parliament, composed of many with undemonstrated talents, feels it appropriate to sit in judgment in fit and proper tests for candidates for Armed   Forces com

    mander, National Police commander, The governor of Bank Indonesia And many other high positions. Our concern is with the quality of our democracy. It is high time the political parties were made to screen their potential candidates for more than just the ability to fund a campaign. Yet Consistently

    the parties look for the popular, not the competent, and those with deep pockets.   This is not about numbers, it is about the capacity to deliver democracy of real value. So far, we have been wasting time and money, and have only succeeded in misleading and confusing the public with flawed leg

    islation.  The business community deserves better to help it build this country and its people, and we demand that the political parties change their ways. They must act with a sense of responsibility to the nation and the Indonesian people.   It is too late for this election, but once the

    dust has settled the political parties must reform themselves and develop strategies to develop the skills of elected legislators, both now and in the future. The ways in which the political parties finance their activities has to change and become more transparent.  A failure to act, to produ

    ce better political parties and better legislators, will inevitably end in damaging our democracy.    

  • Globe Asia - Joko Widodo | Man Of The Year

    Unafraid to act GlobeAsia defines its Man of the Year as the person who is likely to exert the greatest influence on  the nation in 2014.  We closed 2013 with our 50 Most Influential List of individuals who made an impact last year, but in this issue we shift our focus to what lies ahead.

      There is no escaping the fact that 2014 will very much revolve around politics. Indonesians will go to the polls to elect their new president as well as the next parliament. And given the number of scandals and corruption cases leveled against politicians and government officials in 2013, Ind

    onesians will be looking for honesty, integrity and transparency in their new elected leaders.   It can be argued that faith and trust in elected leaders is at an all-time low. The government seems rudderless and unwilling to make hard decisions. That can only be expected given that no politici

    an wants to make unpopular decisions so close to an election.   That is exactly why Jakarta Governor Joko Widodo is unique and different. Not only is he pushing ahead with some unpopular decisions, such as relocating squatters from river banks into low-cost housing, he has made it publicly plai

    n that he is against the central government’s plan to introduce low-cost cars given the traffic gridlock in Jakarta and other major cities.   It is not often that elected politiciansspeak the plain truth and are unafraid to make some tough choices. We need leaders who are not merely popul

    ist but effective and willing to do the necessary even if it means raising the public ire. Most importantly, elected leaders must represent all Indonesians, not just the majority.   Indonesia is today under threat from various directions. We have a vibrant democracy but it risks running amok wi

    th the rule of law being sidelined. We have an economy that is still buoyant but risks being sidetracked by runaway consumption in place of investments in infrastructure and industry.      The country is crying out for leadership. Jokowi, as the governor is affectionately referred to,

    is best placed to provide it. A humble man, he is not afraid to take on powerful vested interests. He has stood up against goons in religious robes and kick-started the long-delayed mass transportation system. He has cleared the streets of illegal parking and warned public bus owners to obey traffi

    c rules.   The bottom line is that he has brought a sense of order back to Jakarta by standing firm and using his persuasive powers to convince citizens to follow his lead.  In a short span of time, he has achieved much, which is why the calls for him to run for the presidency are growing

    louder. Whether or not he will run is inconsequential because in an era where politicians are happy to just talk, Jokowi has demonstrated that he is unafraid to act.   He will therefore cast a large shadow over Jakarta and the nation in the coming year as governor of Jakarta and possibly as the

    next president of Indonesia.