|Indonesia Update | November 9, 2017
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Gaofan Zhang
|THE COUNCIL'S TAKE|
President Jokowi to Attend APEC Summit on Nov 10-11 in Vietnam
President Joko “Jokowi” Widodo is scheduled to attend the 25th Asia-Pacific Economic Cooperation (APEC) Summit from November 10-11 in Da Nang, Vietnam.
President Jokowi is expected to arrive in Vietnam on November 10 and will attend the APEC Business Council meeting with among others, President Ji Xinping of China, President Pedro Pablo Kuczynski of Peru and Prime Minister Jacinda Ardern of New Zealand. President Jokowi is expected to discuss four priority areas chosen by Vietnam as this year’s APEC Summit Host: promoting sustainable, innovative and inclusive growth; deepening regional economic integration; strengthening micro, small and medium enterprises’ competitiveness and innovation in the digital age; and enhancing food security and sustainable agriculture in response to climate change. In addition, Indonesia’s Ministry of Foreign Affairs stated that President Jokowi will also focus on innovative growth as well as the issue of inclusion; how globalization can involve all elements of society.
It will be interesting to closely follow how the Jokowi administration addresses APEC’s efforts to simplify regulatory arrangements in an effort to reduce trade and investment barriers considering several competing domestic economic efforts that lean towards protectionism. Trade and investment policies in Indonesia have certainly undergone changes along with various patterns of development strategy over the past few administrations from an inward-looking import substitution strategy during the Indonesia oil boom in the early 1970s to more trade liberalization seen in the early 1980s when Indonesia removed some non-tariff barriers, notably import licensing and import monopolies. These efforts continued until the early 1990s when it became more politically sensitive to reduce protectionism and remove non-tariff barriers in certain sectors such as agriculture and manufacturing; a situation that Indonesia faces to this day.
Indonesia hosted APEC in 1994 where APEC launched the Bogor Goals of free trade and investment by 2020 for developing economies. Following the 1994 APEC Summit, Indonesia undertook a dramatic liberalization of foreign ownership restrictions. Significant shifts have continued happening since then, and President Jokowi’s participation in this year’s APEC Summit reiterates Indonesia’s commitment to achieve free and open trade and investment. Even though unlike the WTO, APEC has no treaty obligations and decisions made are reached by consensus on a voluntary basis, Indonesia will still benefit from its participation particularly at a time when the regional and global landscapes have experienced fundamental shifts.
U.S. President Donald Trump will address the APEC Summit and jointly all the leaders are anticipated to declare key cooperation points. The 2017 APEC Summit is especially important as it will provide us with further indication on how President Trump intends to position the United States in Asia-Pacific. Under the leadership of former President Barack Obama, the Trans Pacific Partnership Agreement was finalized with 12 economies out of the 21 APEC members, but it has since taken a significant turn.
|IN THIS UPDATE|
Mahathir's Bugis remarks: Indonesian V-P wants apology The Straits Times 9th Nov 2017
Australia-Indonesia free trade talks ramp up The Sydney Morning Herald 8th Nov 2017
Task forces to be to accelerate ease of doing business Antara News 9th Nov 2017
Police Issues Order of Investigation into KPK Leaders Tempo 8th Nov 2017
Top Indonesia court overturns discriminatory religious law Religion News Service 8th Nov 2017
Mandatory Organization of Long-Distance Ferry Services Hukum Online 8th Nov 2017
Indonesia requires ministers, officials to report new regulations The Jakarta Post 7th Nov 2017
Stability sought ahead of 2018 elections The Jakarta Post 7th Nov 2017
Number of unemployed rises to 7.04 million The Jakarta Post 6th Nov 2017
Investment increase to boost economic growth: VP Antara News 8th Nov 2017
Investment has grown in line with business confidence: Finance minister Antara News 8th Nov 2017
Govt boosts regulation and supervision for labor-intensive economic development ... The Jakarta Post 8th Nov 2017
BI urges acceleration of fiscal stimulus package The Jakarta Post 9th Nov 2017
Good Corporate Governance for Securities Companies Acting as Securities Underwriters and Securities Brokers Hukum Online 8th Nov 2017
Finance Minister Meets Gojek CEO, Discuss Fintech Tempo 7th Nov 2017
Consumer trust weakens in October: Bank Indonesia The Jakarta Post 7th Nov 2017
Economy grows 5.06% in Q3 The Jakarta Post 6th Nov 2017
Asymptomatic Infection Helps Norovirus to Spread in Indonesia Infection Control Today 6th Nov 2017
Income Increases Bode Well for Indonesia In Vitro Diagnostics Business Insider 6th Nov 2017
Indonesia Plans Automated System to Flag Contentious Internet Material Jakarta Globe 8th Nov 2017
Personal data protection bill 'priority' for House, ministry claims The Jakarta Post 8th Nov 2017
New Personal Information Provision for Pre-Paid SIM-Card Registration Hukum Online 6th Nov 2017
Indonesia adopts PHL’s PPP model in addressing infrastructure-financing woes BusinessMirror 9th Nov 2017
Government to allocate Rp3.17 trillion for infrastructure development near Malaysia border Antara News 8th Nov 2017
Bogor - Bandung Double Track to Cost Rp1.1 Trillion Tempo 8th Nov 2017