Fitch said Indonesia needs to resolve long-standing structural weaknesses such as overburdened infrastructure and corruption that hamper its business climate before expecting a further rating upgrade. Above, workers labor on a fly-over under construction in Jakarta on Dec. 5.
The past year ended on a strong note for Indonesia as Fitch Ratings raised Indonesia’s sovereign credit rating to investment grade for the first time in more than a decade. This move expected to trigger more investment in Southeast Asia’s largest economy.
At the same time, Indonesia faces a challenge in the need to improve the nation’s infrastructure. Transportation within the country is associated with high costs and low reliability. Investment in this key area would go a long way toward improving the economy as well as the quality of life for all Indonesians.
Suryo Sulisto, first hosted by AICC in the 1980’s as an Eisenhower Fellow, returned as Chairman of Indonesia’s largest business organization, KADIN (Indonesian Chamber of Commerce and Industry), to speak to 45 AICC members at a December 8thbreakfast at the Yale Club of NY. KADIN is the only organization with statutory authority to represent business with the government. Sulisto highlighted the fundamental connection between NY and Indonesia through the shared legacy of colonization by the Dutch and the fact that the Manhattan was traded to the British fo ran island in the Moluccas. Acknowledging the serious economic challenges facing Europe and the US, he urged American companies to focus on new opportunities, and made the case for Indonesia as one of them.
Given the anticipated lower demand from the US, EU and even China, Indonesia was well positioned to ride out the “turbulence” for the following reasons, in Sulisto’s opinion:
Only 22% of GDP is export related, 60% is consumption
Growth in range of 5.5-6%
Low debt to GDP ratio: 26%
Structurally sound economy with abundant natural resources and a middle class predicted to be 60% of the population by 2030.
High levels of consumer confidence fueling good demand for products, heightened by the youth of the country’s population (50% under 35)
Better exposure internationally in forums such as G20, APEC, East Asia Summit
Ample foreign reserves, in worst case the finance ministry can buy back bonds to curb a currency run
Posted by: admin | Posted in: Global Business | Posted on: 11-20-2011
President Barack Obama walks with Indonesian President Susilo Bambang Yudhoyono before the East Asia Summit Gala dinner in Bali, Indonesia, on Friday.
By Jackie Calmes / New York Times News Service | Original Article
Published: November 19. 2011 4:00AM PST
BALI, Indonesia — President Obama discussed maritime security, nuclear nonproliferation and disaster aid at an Asian summit meeting on Friday, but just his presence on this resort island telegraphed his main message: that the United States is turning its focus to the booming Asia-Pacific region after a decade of preoccupation with wars in Iraq and Afghanistan.
Calling the region critical to economic growth and national security, he said, “I want everyone to know from the outset, my administration is committed to strengthening our ties with each country individually but also with the region’s institutions.”
The American focus on Asia has been raising tensions with an ever more powerful China, which has been increasingly assertive in the region. On Saturday morning Mr. Obama held a previously unscheduled meeting with Prime Minister Wen Jiabao of China. Administration officials said Mr. Obama and Mr. Wen talked briefly on Friday night at a dinner for the gathered leaders and agreed to meet the next morning. Earlier on Friday, Mr. Wen had pushed back against the United States, saying that “outside forces should not, under any pretext” interfere in a regional fight over the control of the South China Sea.
Mr. Obama spoke Friday at the opening of the annual meeting of the 10-nation Association of Southeast Asian Nations, which does not include China. Before that session, he met separately with the leaders of India, Indonesia, Malaysia and the Philippines.
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President Barack Obama and other leaders of Pacific Rim nations in Honolulu this week for the Asia-Pacific Economic Cooperation Leaders’ Week meetings will report on the effort to create a Trans-Pacific Partnership, which would be the biggest free trade agreement for the United States since the North American Free Trade Agreement with Canada and Mexico.
Bloomberg reports, via the Honolulu Star-Advertiser, that the Pacific agreement would help to double U.S. exports by 2015 from 2009 levels. Bloomberg reports that the Obama administration is seeking to expand the agreement beyond its current eight nations to include China and Japan.
To be organized by the Indonesian Batik Foundation (YBI) in cooperation with the government, the Batik Summit will consist of two main events: the World Batik Exhibition (WBE) and the World Batik Conference (WBC).
The World Batik Summit (WBS) themed “Indonesia: Global Home of Batik” will be officially opened by President Susilo Bambang Yudhoyono, according to Organizing Committee Chairwoman of the World Batik Exhibition Murniati Widodo in Jakarta on Friday (Sept. 23).
The biennial World Batik Exhibition will have three themes, namely :”Multi-Partnership: Bringing Batik To The World”, “Batik`s Contribution to the Creative Economy”, and “Batik as a Cultural Heritage: Conservation and Modernization”.
Posted by: admin | Posted in: Global Business | Posted on: 09-20-2011
September 20, 2011 | Embassy of the Republic of Indonesia | Washington DC
The Embassy of the Republic of Indonesia hosted an event today that featured the Free Trade Zone (FTZ) located in the Riau Islands Province. The Governor of Riau Islands Province, Drs. Muhammad Sani, was the guest of honor, and members of his staff provided important information on doing business in the FTZ.
Mr. Leonardo Stoute, President of LSI Group, and his staff were among the invited guests at the event. Many good connections were made and we will post future developments on this site.
Suryo Sulisto, first hosted by AICC in the 1980’s as an Eisenhower Fellow, returned as Chairman of Indonesia’s largest business organization, KADIN (Indonesian Chamber of Commerce and Industry), to speak to 45 AICC members at a December 8thbreakfast at the Yale Club of NY. KADIN is the only organization with statutory authority to represent business with the government. Sulisto highlighted the fundamental connection between NY and Indonesia through the shared legacy of colonization by the Dutch and the fact that the Manhattan was traded to the British fo ran island in the Moluccas. Acknowledging the serious economic challenges facing Europe and the US, he urged American companies to focus on new opportunities, and made the case for Indonesia as one of them.
