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Competing Food Estates in Merauke

Two food estate projects are simultaneously being launched, targeting 2.29 million hectares of forest and land in Merauke. There are intrigues involving Prabowo and Jokowi. This report is part of a collaborative coverage and research initiative by Tempo, the Pusaka Bentala Rakyat Foundation, and Trend Asia.

Cover Story Monday, September 23, 2024 Edition

May 20

SHOES were all the talk. This was Jakarta in the early 20th century. To be precise: shoes were the talk, European schools, Dutch students, non-Dutch students, and behind it all, colonialism.

Sidelines Thursday, May 23, 2019 Edition

Market Pulse: A Busy Start In 2017

As we enter 2017, the government has been busy seeking ways to stabilize the rupiah. With the Federal Reserve raising US dollar interest rates late last year, other world currencies, including the rupiah, have weakened. Our currency, which in the third quarter of last year averaged about Rp13,100 per US dollar, closed the year at Rp13,400. Unfortunately, the rupiah will continue to face pressure, given the Fed's plan to further raise interest rates this year.

It is no surprise that the government recently allowed mining companies to export their mineral ores. This is to increase exports and foreign exchange earnings, to help stabilize the rupiah. Previously, the government banned mineral exports to encourage mining companies to go up the value chain and build the smelter production phase. Under the new arrangement, 70 percent of ore production is allowed for exports, while the remaining is required to be sold to local smelter companies. Currently, there are about 30 plus local smelter facilities, some in various phases of construction, a few already completed.

Economy Tuesday, January 24, 2017 Edition

A More Uncertain 2017

Brexit forced economists to redo their projections for 2017. And, rightly so, as not long after the United Kingdom (UK) decided to leave the European Union (EU), its currency slumped to its lowest level in many years. The concern is that this nationalistic, anti-trade and anti-migration sentiment is gaining followers in other EU countries, which raises uncertainty over the future of the EU and its euro currency, especially with the upcoming elections in France, Germany, Italy and the Netherlands.

Forecasting became tougher when Donald Trump won the United States (US) general election. Although it's still uncertain what exactly his economic policies would look like, he did campaign to limit the flow of trade and migration, in particular, trade between China and the US and the flow of migrants between Mexico and the US, which could disrupt world trade.

Economy Tuesday, December 27, 2016 Edition

Revving Up The Economy for 2017

The tax amnesty program that will run through March 2017 offers hopes of increased economic growth. The government may be euphoric over the additional revenues generated, but the success should not tempt it to rest on its laurels.

The much-touted tax amnesty program has managed to collect Rp93.6 trillion as of last September, albeit a far cry from the government's target of Rp165 trillion. While going at the target, the tax directorate-general might as well take advantage of the broad tax base to increase revenues next year.

Opinion Tuesday, October 25, 2016 Edition

Tempo's Artists of 2015
A Firing Squad and a Charcoal Grinder

One by one on that last evening in October 2015, the amateur performers introduced themselves. Within a very short time, the audience at the Yogya Cultural Center began to feel thoroughly amused by what they were watching.

The show was entitled 100% Yogyakarta. It did not feature any professional actors. All those up on the stage were ordinary people from around the city, including a parking attendant, a grave digger, a street tough, a housewife, a transvestite, a neighborhood association head, a teacher, and the head of a hardline Islamic organization.

Special Report Tuesday, January 12, 2016 Edition

Benedict Anderson 1936-2015
The Last of the Great Liberals

Lying in state at the Adi Jasa funeral home on Tuesday, December 15, Ben Anderson was clad in a brown-colored Madura batik shirt. "That's my batik shirt," said Sugito, the driver who always accompanied Anderson since 2009 whenever he toured East Java. Sugito wiped his tears and tenderly touched the edge of the laced cloth covering the coffin.

Anderson arrived in Surabaya with his close friend, Edward Hasudingan, a.k.a. Edu, five days earlier. Both met in 2004 when Edu studied at Ithaca College in the United States. They stayed at Hotel Santika Pandegiling in Surabaya.

Special Report Tuesday, December 22, 2015 Edition

Dark Landscape in 2016

As we approach the end of 2015, it is becoming clearer that next year's global economic outlook will change. This will naturally result in business strategy adjustments, both in the real sector as well as investment portfolios in the financial sector.

The most imminent change will be the US Federal Reserve's rate hike and all of its consequences. Last Wednesday, the Fed chair, Janet Yellen, reaffirmed the possibility of an interest rate hike, which immediately brought down stock prices and exchange rates around the world.

Economy Tuesday, December 8, 2015 Edition

Will 2016 be Better?

It is only a month before the closing of company books for 2015. In retrospect, it has been quite a dismal year. In January, there were high expectations, being the start of President Jokowi's first year in office. But by the year-end, the results were disappointingly far below expectations. This year's economic growth is expected to reach only 4.8-5.0 percent, in contrast to the 6.0 percent target set by the new administration. The Rupiah and the Jakarta Composite Index (JCI), which began the year, respectively at Rp12,500 per US$ and 5,200 points, dropped considerably, settling at Rp13,600 per US$ and 4,500 points by year-end. With sluggish economic growth, businesses have been forced to adjust downward this year's revenue targets. Along with the decline in sales, companies have been busy cutting costs, which at times hurt employment. Unfortunately, the cost cuts are rarely able to match the drop in revenue. As a result, profits have narrowed across the board.

The follow-up question is whether our economy has reached its lowest point and that by next year it should start to recover? In various economic seminars towards year-end, numerous experts are facing difficulty in assessing next year's outlook. Even the optimistic scenario predicts this year's sluggishness will extend till the first half of the year and the recovery to take place only after mid-year. The problem, they argue, is that the level of volatility or uncertainty remains high.

Economy Tuesday, November 17, 2015 Edition

Goenawan Mohammad Chairman, Indonesian national Committee for the Frankfurt Book Fair 2015
This is a once-in-a-lifetime project

The 2015 Frankfurt Book Fair ended in mid-October. As the guest of honor at the world's largest book fair, Indonesia chose the slogan '17,000 Islands of Imagination' to lead its presentation.

It was a huge success, although the team only had two years to prepare for the event, compared to the five to six years other countries had.

On The Record Tuesday, November 10, 2015 Edition

Hana S. Hikoyabi, 2015 SK Trimurti Award Recipient:
I was told it's a man's job

Hana Salomina Hikoyabi is an activist from Papua, who uses her bureaucratic savvy to get things done. She was vice chair of the Papua People's Assembly during the 2006-2011 period and is currently the head of the Regional Development Planning Board for Jayapura Regency. Hana founded the tabloid Suara Perempuan Papua (Voice of Papuan Women), to publicize issues related to violence against women, the need to acknowledge people living with acquired immune deficiency syndrome (AIDS), for information on access to justice and the conservation of Papua's mega-biodiversity.

The tabloid has been influential in changing perceptions on gender in Papua, and she is not giving up on the idea that women should continue aiming for 30 percent representation in the legislature. For her unrelenting advocacy to give voice to the women's plight in Papua, she was presented with the 2015 SK Trimurti Award by the Indonesian Alliance of Independent Journalists (AJI) at the beginning of September.

Outreach Tuesday, October 6, 2015 Edition

Priorities For 2015

President Jokowi's 2015 revised government budget is his first, and, as such, is interesting to get a more detailed view of his policy spending priorities, how he expects to implement them and, more importantly, how to fund them. But, understanding where the government is spending its money this time is critical because the recent cut in fuel subsidies allows the government some real spending power to make a difference. A quick glimpse into the 288-page document, shows three areas that particularly stand out. They are infrastructure with a maritime bent, food security and social services.

Special Report Thursday, January 1, 1970 Edition

Optimistic About Indonesia's Economic Prospects in 2015

FOR many Indonesians, 2015 began on a positive note: subsidized fuel prices had fallen with global oil prices. Premium gasoline dropped from Rp8,500 to Rp7,600 per liter, and automotive diesel oil went from Rp7,500 to Rp7,250 per liter.

With that in mind, President Joko Widodo was optimistic 2015 would bring improvements for the Indonesian economy, with the government able to cut subsidies and free up funds. "This money can be diverted to build infrastructure such as reservoirs, irrigation, toll roads and railways outside of Java," Jokowi said.

Indicator Tuesday, January 13, 2015 Edition

Counter-Terrorism and the Rise of ISIS in 2014

Sidney Jones
Director, Institute for Policy Analysis of Conflict (IPAC)
sjones@understandingconflict.org

Would-be terrorists killed four police officers and a military informant during the year, but the low death toll masked a high level of activity, much of it focused on getting to Syria. By December, 110 Indonesians had been identified as having gone to Syria to fight since mid-2013, including wives but not including those who went only briefly on humanitarian missions. Most left to join the Islamic State of Iraq and Greater Syria (ISIS), later simply called the Islamic State (IS), but some joined rival forces, including the al-Qaeda-linked al-Nusra Front. By mid-2014, concern was growing in government circles over how to prepare for the possible return of experienced mujahidin with the potential for revitalizing the jihadi movement at home.

ISIS-linked issues were not the only concern: the resurfacing of Jemaah Islamiyah as a well-structured organization with a systematic recruitment and training agenda was also a worry, as was the ongoing lack of a clear strategy for counter-radicalisation efforts. ISIS, however, attracted all the attention, particularly after its recruitment video, Joining the Ranks, was posted on YouTube on July 23, with an Indonesian fighter, Bahrum Syah, urging others to join the Islamic State. Officials in Jakarta saw this as a direct challenge to the Indonesian republic and on August 4, 'banned' ISIS. In the absence of any law or regulation outlawing membership, however, the 'ban' was little more than a policy directive. To this day, Indonesia has few tools at its disposal to deter people from pledging loyalty, travelling to Syria or coming back as combat-hardened fighters.

Column Tuesday, December 23, 2014 Edition

Lessons Hopefully Learnt for 2015

Manggi Habir*

As we close 2014 with a weak rupiah, a high domestic interest rate and a slowing economy, the only bright spot seems to be a new government with a new style of leadership that provides hope that changes will come. And, maybe the year-end is a good time to make an assessment on what we can learn for 2015. Let me start with the rupiah, as its weakness throughout the year does reflect alot of what is wrong with our economy.

On the rupiah's weakness, we must differentiate on the source of weakness where we have little control of and where we can do something. As it is always easier to blame others for our problems, the world's two largest economies would be high on the list of external sources of our currency's problems.

The US economy, because it is the only major economy that is growing well due to its loose monetary policy, has the US dollar becoming more attractive. But the Fed realizing that good things do not last forever, is concerned of potential inflation ahead and plans to raise interest rates, making the US$ even more desirable. Just remarks that it plans to raise rates has lead to massive conversions to US dollars worldwide. This year, the US dollar has strengthened against nearly all other currencies. However, as the emerging market currencies lack deep markets, the weakness is more apparent, which unfortunately includes our rupiah.

Column Tuesday, December 23, 2014 Edition

2014: The Year of Defending Our Democracy

Philips Vermonte
Head, Department of Politics and International Relations, CSIS Jakarta

Indonesians have once again proven that they are indeed maturing towards democracy as the legislative and presidential elections passed rather peacefully. The noise and political tension were there, and will always be there, but they are two inseparable ingredients of our democracy. A good dose of political difference within the political community is needed to ensure that whoever is in power, does not govern with a blank check in his or her hand.

Having said that, however, questions remain: What do the 2014 elections signify? Are we consistently progressing towards democracy or are we regressing?

Column Tuesday, December 23, 2014 Edition

Jokowi: Indonesia ready to Support AEC 2015

President Joko Widodo attended his first Association of Southeast Asian Nations (ASEAN) Summit in Naypyidaw, Myanmar, on November 12-13. He asserted during the meeting that Indonesia was ready to support the ASEAN Economic Community (AEC) free market in 2015. "Indonesia will not let itself be merely a market," he said.

According to Joko, an increase in inter-ASEAN trade will be the key to AEC success. "Within the next five years, I hope the value of trade between ASEAN member states can reach at least 35-40 percent," added the president. As of now, inter-ASEAN trade volume is 24.2 percent. He also urged other member states to work together in doubling the ASEAN GDP, from US$ 2 trillion to US$ 4 trillion, and reducing the poverty rate to 9.3 percent by 2030.

Rahmat Pramono, the permanent representative of Indonesia to ASEAN, said that Indonesia's readiness to face the AEC is only 82 percent. He sees the integration as an opportunity for economic growth. Sri Adiningsih, an economist from Gadjah Mada University said that Indonesia has been ASEAN's main support because of its central location in the region. "Our trade balance in the area, be it oil or non-oil, experienced surplus for a while," she said.

Diplomatic Bag Tuesday, November 18, 2014 Edition

Challenges in 2015

Pending economic problems await Joko Widodo and Jusuf Kalla's administration. In addition to the narrow room for maneuvering the budget, global economic uncertainty will be the economic challenge throughout 2015. Raising subsidized fuel prices is a policy option that must be taken as soon as possible.

Cover Story Tuesday, November 4, 2014 Edition

Nafsiah Mboi, Health Minister
I'm committed to an HIV/AIDS-free generation by 2030

The viewers watching the high-rated Q & A talk show at the Melbourne Town Hall in Australia, listened in amazement as Indonesian Health Minister NafsiahMboi shared her experience in advocating the use of sterile needles for human immunodeficiency virus (HIV)-infected drug addicts. Recalling one meeting when policymakers challenged her plan, Nafsiah responded: "Do we want to kill them or do we want to save them? The easiest way would be to kill them," she said, stressing her point. That shocking quote,went viral on social media.

Indeed, 74-year-old Nafsiah, who has been a public health activist for the past 40 years, tends to be emotional when discussing the issue of acquired immunodeficiency syndrome (AIDS), an issue that is close to her heart. In 2004, she was one of the conceptors of the Sentani Commitment, which became a milestone for the central and provincial governments in battling AIDS. In 2006, she was named executive secretary of the National AIDS Commission (KPA) and was so effective, her subsequent post as chairperson of the The Global Fund, an international funding institution for AIDS, TBC and malaria in 2013, seemed a natural progression.

Outreach Thursday, January 1, 1970 Edition

TEMPO’S ARTS FIGURES 2010
The Young and the Spirited

The beginning of the year is the time when we jot down some notes about the year that has just passed. And, as in previous years, we decided to scratch in the names of artists we believe have enriched the artistic treasures of Indonesia. After discussions and debates, finally we made our selection.

It is no accident that those who have courageously made refreshing breakthroughs in 2010 are for the most part young people. Here are the leading figures in the arts in 2010 selected by Tempo.

Special Report Wednesday, January 12, 2011 Edition

INDONESIAN ECONOMY 1ST QUARTER 2010
The Threat of Stagnation

The Indonesian economy during the first three months of this year has shown faster growth than that of the last quarter of 2009. Both exports and investments have risen despite the lack of recovery of the world economy. Nevertheless, there are now indications of stagnation. If the government does not want the economy to slow down, it must control the price of food, increase the intermediary role of banks and sort out what is slowing down expenditure of the State Budget.

Economy Wednesday, June 9, 2010 Edition

ART FIGURES 2007
The Nonconformists

Each year Tempo chooses people believed to have most contributed to the advancement of Indonesian art and architecture. This year our choice went to those who have produced fresh ideas, breaking away from conventionality and rigidity. In architecture, in particular, a new criterion was added: environmental awareness. In the process of selection, the following names made the list as Tempo’s Artists of the Year 2007: Ugo Untoro, Deddy Mizwar, Zen Hae, Tri Rismaharini, Amran Nur, Romo Johannes M. Hammerle, and Laretna.

Special Report Tuesday, January 8, 2008 Edition

Gamal Nasir Director-General of Plantations, Ministry of Agriculture
We can be the world's largest cocoa producer

GAMAL Nasir has more than 30 years of experience working with the government's agricultural department. A graduate in agricultural economics from Padjajaran University, he believes that Indonesia produces many valuable commodities that can do well in the international market, and cocoa is one with the most potential among them.

Today, Indonesia is the world's third biggest producer of cocoa beans after Ghana and the Ivory Coast, producing more than 700,000 tons last year. Yet, Gamal feels that Indonesia can do better. Some 1.7 million hectares of cocoa plantations are spread throughout the archipelago, planted and managed by 1.6 million farmers. "This commodity has so much potential, we can probably be the second largest, or even the number one producer of cocoa beans in the world," he claimed.

Outreach Tuesday, June 14, 2016 Edition

Weaveworld Redux

Retired Swiss architect Bernhard Bart is the spirit behind the revitalization of the age-old songket or woven sarong, made only by the Minangkabau people of West Sumatra. Described by Bart as the worlds most exquisite woven cloth, songket today is almost extinct and can only be found in museums. Aided by local artists and weavers, Bart has produced replicas of antique songket, revolutionizing its weaving techniques in the process. It used to take two years to complete one piece but today a songket can be produced in just two months. Collectors now seek these beautiful cloths created by Bart and his colleagues, and they are exhibited in many shows and venues. What are the challenges of reviving the ancient art of weaving? A look at a new-old home industry by Tempo English Edition in West Sumatra.

Outreach Thursday, January 1, 1970 Edition

Reoccupy Movement

IT is not unusual for Jusuf Kalla to meet with Vice President Boediono. The two often meet at events in Jakarta, where they have friendly chats.

The two met again a few days after August 22, when the Constitutional Court decided in favor of running mates Joko Widodo and Jusuf Kalla in the disputed results of the presidential election. At this meeting, Boediono shook Kalla's hand and congratulated him. "Pak Boediono told me, 'I will be giving you back your old office'," said Kalla with a laugh, quoting Boediono, two weeks ago. Indeed, the office of the vice president, which Boediono occupied will now revert back to Kalla.

Special Report Thursday, January 1, 1970 Edition

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