Livestream
Special Interview
Video Streaming
Editorial (913)
July
European Union Commitments anticipate the impact of Covid 19
Written by Maryati
After going through four-day discussion and argumentation, the EU leaders finally reached an important agreement to overcome the impact of Covid-19 pandemic. The European Union summit which ended on Tuesday, July 21 agreed to raise around 2 trillion euros to deal with the problem. Although it was hampered by Hungary and Poland, European Council President Charles Michel said the summit was a success. The 4-day marathon discussion finally succeeded in providing new hope for handling the Covid 19 impacts. French President Emanuel Macron even said that the results of the summit this time was a historic moment for the European Union.
Funds of around 2 trillion Euros which were agreed by the EU leaders will be channeled in the form of grants and loans, for EU members who need it due to significant impacts from the Covid19 pandemic. However, European Commission President Ursula von der Leyen had expressed disappointment because of budget cuts for research and innovation.
The commitment and agreement of EU leaders is noteworthy as a joint success in dealing with Covid-19 and its impact. Leaders have used the organization they formed to discuss urgent and important issues related to the Covid19 pandemic. The provisions of the summit could serve as examples for other regional organizations in viewing and resolving the problem which has hit almost every country in the world. For organizations outside the European Union, different views and commitments are often an obstacle for reaching agreement. The European Union is fortunate because none of its member states are involved in conflicts, let alone civil war, as is the case in other regions of the world. The economic conditions of the main buffer countries of the European Union, such as Germany and France, are quite capable of contributing to the realization of funding commitments and joint efforts.
Covid 19, in a number of European Union countries, is believed to have begun subsiding. However, anticipating the impact in the future, especially in the economic field must indeed be considered as the EU leaders did.
July
Indonesian Government Encourages Investment amid Covid-19 Pandemic
Written by Maryati
The Investment Coordinating Board is targeting to attract foreign investors to invest in Indonesia amid the Covid-19 pandemic.
Spokesperson for the Investment Committee, Tina Talisa in a discussion held by the National Disaster Mitigation Agency in Jakarta, Friday (17/07) said that the target is in accordance with President Joko Widodo's announcement last June 30th. At that time, the President revealed there were seven foreign companies that are interested in relocating investment to Indonesia, including companies from Thailand, Malaysia, and China. The Investment Coordinating Board has the task to catch the investment relocation signal.
The government focuses on encouraging the realization of industrial sector investment in the country, both from foreign and local investors. This strategic step aims to strengthen the manufacturing structure in the country so that it can strengthen the supply chain and competitiveness.
Head of the Ministry of Industry Data and Information Center, Janu Suryanto said that he would continue to oversee investment in the industrial sector. Therefore, the investment is believed to spur production capacity to meet the needs of the domestic market to export.
As a result of the Covid-19 pandemic, the achievement of Foreign Investment during the first quarter of 2020 reached only Rp 98 trillion, a decrease of 7 percent compared to the realization of the same period in 2019.
Attracting foreign investment, especially during the Covid-19 pandemic, is certainly not easy. Reformative steps are needed. Satu Kahkonen, World Bank Representative Head for Indonesia and Timor Leste, in a virtual discussion on the Indonesia Economic Prospects, Thursday (16/7) said that to rebuild Indonesia's economy, there are three key reforms.
First, there is a removal of business restrictions through the Omnibus Law so that it can remove obstacles for investors to enter Indonesia. Second, reformation of State-Owned Enterprises is needed to promote investment. While the third point is that it’s necessary to accelerate tax policy.
According to Satu Kahkonen, Indonesia is currently experiencing a huge gap in the realm of infrastructure. This cannot be overcome solely based on public funds or the State Revenue Budget. The World Bank Representative for Indonesia and Timor Leste said that Indonesia must be able to mobilize finance from the private sector.
July
In Indonesia, the word –Koperasi reminds people of the Village Unit Cooperative (KUD), a business entity established by farmers or fishermen in the countryside or the Koperasi in schools that sell stationery needs for students. In addition, in various government and private agencies, Koperasi can be found. Generally, the Koperasi is more like a saving and loan business.
By definition, Koperasi comes from the word "cooperative" which means to cooperate. According to the 1992 Law, Cooperatives are business entities whose members are individuals or legal entities with activities based on the principle of cooperation as well as the people's economic movement, with the principle of kinship. So, even though it is a business entity, the purpose of cooperatives in general is not solely for profit but also improvement of the members’ welfare.
The development of cooperatives in Indonesia began in 1947 when the first Cooperative Congress was held in Tasikmalaya, West Java, from July 11-14, 1947 during the War of Independence. It was attended by around 500 delegates from more than 2,000 cooperatives throughout Indonesia. In the congress, July 12 was designated as Indonesian Cooperative Day.
After 73 years officially established in Indonesia, the development of cooperatives seems to be slow. In an online discussion commemorating the Cooperative Day on July 12, 2020, Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki said that currently, cooperatives in Indonesia have not yet penetrated the creative industries and tend to run their businesses in conventional ways. In fact, the potential of the creative industry is very large and close to young people.
Indeed, it seems that cooperatives are less popular among young people. They consider cooperatives old-fashioned and outdated. Lack of knowledge about cooperatives also hinders young people's interest in joining cooperatives to develop.
The cooperative sector faces a major challenge to optimize the potential of millennial generation in Indonesia. Moreover, Indonesia will enter the demographic bonus period in 2020-2035 which reaches its peak in 2030. In this period, the composition of Indonesia's population will be dominated by productive age groups.
It is time for Indonesian Cooperatives to involve the millennial generation during the demographic bonus period. Unless, the cooperative sector will be increasingly abandoned by the younger generation. That is a threat because it could be, the cooperative sector is experiencing extinction in Indonesia due to the absence of regeneration.
Happy National Cooperative Day!
July
Certainly, the world does not forget the Rohingya (/ roʊˈɪndʒə, -hɪn-, -ɪŋjə /), ethnic Muslims who originally settled in Myanmar and are now refugees. Evicted from their places of origin, in various ways, including using boats, they are trying to find safer places in other countries. Conditions are increasingly difficult when the Rohingya Muslims still try to find new locations to evacuate in the condition of the ongoing Covid-19 pandemic. The countries they are aiming to are currently trying to limit the arrival of foreigners to prevent the spread of the Covid-19. Malaysia, which is often the main destination of the Rohingya refugees, firmly states that it cannot accept them because of domestic conditions that are busy facing the Covid-19 pandemic. The current condition of Rohingya people is also worsened by the push-back policy of another destination country, Thailand.
The Rohingya refugees are forced to leave their settlements that have been inhabited from generation to generation due to the violence of the Myanmar government which leads to genocide or ethnic extermination, especially in 2017.
More than 1 million Rohingya people are now in Bangladesh, a neighboring country that is said to be the place of origin of this ethnicity. The Rohingya themselves claim they are native to West Myanmar but have never obtained clear citizenship status from the Myanmar government.
In Bangladesh, Rohingya people are crammed into refugee camps that are crowded with conditions far from decent. It is planned that they will be sent back to Myanmar.
Certainly, a breath of fresh air when for humanitarian reasons Indonesia would be willing to accommodate Rohingya boat people in the waters of Aceh at the end of June. Amid the Covid-19 pandemic conditions faced by all countries, Indonesia welcomed Rohingya refugees with open arms. Indonesian Minister of Foreign Affairs, Retno Marsudi said that she would move the location of 99 Rohingya people in Aceh to a more suitable place. The United Nations High Commissioner for Refugees -UNHCR has officially recorded the Rohingya refugees who were housed in Aceh.
The question is that amid the current Pandemic atmosphere, what should the countries which are often the destinations of Rohingya refugees do? There is a dilemma. Because amid the Covid-19, there is a burden of humanitarian responsibility that must be accounted.
Indonesia has answered that by putting forward a sense of humanity. It remains to be seen how other countries will also react in the face of the number of Rohingya refugees who continue to look for new destinations amid the ongoing pandemic that nobody knows when it will be over.
July
Indonesia’s Grade Up from Lower Middle to Upper Middle Income Country
Written by Maryati
Last week, the World Bank upgraded Indonesia's status from a lower middle income country to an upper middle income country. The World Bank raises the status of Indonesia based on the latest assessment. Indonesia's Gross Domestic Product (GNP) per capita in 2019 recorded an increase to US$ 4,050 dollars from US$ 3,840 dollars in 2018. The World Bank classifies countries based on GNP per capita in 4 categories: Low Income (US$1,035), Lower Middle Income (US$, 036 – US$4,045), Upper Middle Income (US$4,046 – US$12,535) and High Income (more than US$12,535).
The World Bank uses this classification as one of the factors to determine a country eligible to use World Bank facilities and products, including loan pricing.
Upgrading Indonesia from Lower Middle to Upper Middle income country will provide several benefits, such as strengthening the confidence and perceptions of investors, trading partners, bilateral partners and development partners for the resilience of the Indonesian economy, increasing foreign investment both directly and indirectly, improving the performance of the current account which is still in deficit. In addition, the benefits can boost economic competitiveness and strengthen financial support. This is an important point in the strategic stages and a solid foundation towards Indonesia Forward in 2045.
In return of the benefits achieved by Indonesia with the upgraded rating, there is a challenging factor. Take for example; in terms of international trade, an increase in status has consequences for Indonesian products that might get fewer tariff relief facilities. The United States might revoke GSP (Generalized System of Preferences) facilities or import duty exemption facilities. In fact, many Indonesian products have benefited from the GSP facilities such as textiles, apparel, agriculture, fisheries, cacao and wood products. The increase in status will also have a significant impact on debt financing. With the status of an upper middle income country, Indonesia is considered capable to pay at a higher interest rate. While creditor countries will prioritize loans for countries that earn less than Indonesia, especially low-income countries. The increase in status will also threaten employment if not accompanied by changes in economic structure. This means that Indonesia does not need to be proud of this new status because there are still many challenges to be faced ahead.
July
Tension of relations between Iran and the United States continues to increase. The escalation of tension was triggered by the death Iran's elite Quds forces commander due to drone strikes in Baghdad.
Qasem Soleimani, one of the Generals at the Iranian Revolutionary Guards, was killed near Iraqi Baghdad International Airport. Tehran insists that the General died because he was killed by US troops. The death of General Qasem Soleimani, became a new issue that led to increased tensions with the United States. Especially with the statement of Tehran to arrest President Donald Trump.
Shortly after the death of Qasem Soleimani last January, the Iranian government issued an official statement. Tehran insists it will not comply with restrictions on nuclear production.
The poor relations between Iran and the United States also became worse when Ali Alqasimehr, a prosecutor in Iran, stated that the President of the United States and 35 others were accused of murder and terrorism. Tehran asks the Interpol to help arrest and detain Donald Trump.
It is very likely that the Interpol, based in Paris, France will not grant Tehran's request. The uncertainty that it was Trump who ordered the killings might become a consideration for Interpol not to grant Iran's requests, in addition to several other reasons. Along with that, of course it is not easy for Iran to be able to arrest Donald Trump. Washington itself does not appear to be responding seriously to the Iranian threat. The US special representative to Iran even still considers the order to arrest Donald Trump merely a matter of propaganda.
However, Tehran's statement to arrest the President of the United States, Donald Trump, at least to this day, can be considered a sign of Iran's resistance. This shows an increasingly intense hostility on the part of Iran.
June
Tourism is one of the sectors mostly affected by Covid-19 pandemic. The most affected businesses in this sector include travel agents, hotels, restaurants, transportation, tour guide services and souvenir shops.
The Central Statistics Agency recorded the number of foreign tourist arrivals to Indonesia in April 2020 decreased sharply, almost 88 percent, compared to the same month last year. The number of tourists in April 2020 only reached 160,000 people compared to the same period last year which was 1.27 million visits. Data shows the decline in foreign tourist arrivals started in February, March, and mostly in April 2020.
During January to April 2020, the tourism industry lost potential revenue from foreign tourist visits of around US$ 4 billion dollars or around Rp 62 trillion. From reports compiled by the Indonesian Hotel and Restaurant Association, until April 13, 2020, there were at least more than 1,600 hotels and 350 restaurants / entertainment venues that stopped operating.
Deputy of Marketing at the Ministry of Tourism and Creative Economy, Nia Niscaya in an online business discussion of the Indonesian Travel Companies Association on Saturday (27/6) stated that low tourist confidence was one of the causes of the tourism sector being hit. According to Nia, Indonesia experienced a lack of trust from foreign and domestic tourists due to the Covid-19 pandemic. Therefore, Indonesian tourism must strive together to boost the trust. But as the government handled the Covid-19 incessantly, sentiment from a number of countries towards the Indonesian market had begun to experience positive growth. To re-increase tourist confidence and national tourism, the Ministry of Tourism and Creative Economy has drawn up protocols for Cleanliness, Health and Safety (CHS).
The CHS protocols are carried out as one of the programs to accelerate tourism recovery in Indonesia so that the country's economy improves immediately. Besides foreign tourists, the Ministry of Tourism and Creative Economy also tries to attract domestic tourists in the New Normal Order. Thereby, it launched a movement called ‘Just Travelling to Indonesia’.
Of course, travelling during the Covid-19 pandemic is very different from traveling in a normal situation. In the current condition, there are several protocols that must be maintained and implemented by both visitors and managers of tourist attractions, such as limiting the number of visitors, the obligation to wear masks for everyone and maintain physical distance from each other.
June
"Without Putin, there is no Russia." These words seem to be the general view of the Kremlin staff, including millions of Russians. Over the last two decades, they have placed Vladimir Putin in power as prime minister and president. The mandate is very likely to be renewed on July 1, after millions of Russians participated in a referendum to change the constitution, Vladimir Putin opened the door to constitutional changes that would allow him to remain in power until 2036. A public vote on constitutional reform has been scheduled for July 1. Analysts see Putin's plan to change the constitution as a preliminary preparation for succession when his term will come to an end in 2024. Putin is a figure who has dominated Russia's political world for the past two decades, both as president and prime minister. In January, Putin announced the proposed constitutional change but needed further approval from parliament. Then, he suddenly appeared and gave a speech before members of the parliament. In essence, he submitted a proposed amendment to the decision of the constitutional court, which would formally calculate the period of his administration from zero. The constitutional court is expected to give its approval for the proposed amendment and support it in the national vote. Thus, Putin could return to office as president for a period of six years. Putin, who is currently 67 years old, in January launched a major overhaul of Russian politics. Constitutionally, his term as president will end in 2024. But after he spoke to the Duma, which is the Lower House of the Russian parliament, on Tuesday (10/3), there emerged a proposal that would formally reset the president's term to zero. In principle, this is indeed possible, but one condition is that the constitutional court must give an official ruling that such an amendment will not contradict with the main principles and provisions of the Constitution.
June
Since the fall of the Muamer Gaddafi regime, in 2011, Lybia has continued to flare up. Armed conflict between the government and opposing parties continues. Lately, the conflict has been getting hotter with the intervention of foreign parties.
After Egypt said it would support the rebels, Turkey insisted it would soon assist the government in military and weapons form.
The Turkish government firmly supports the ruling Lybia government and ensures it will send military assistance to fight the rebels. The decision declared by the Turkish president, Erdogan, ignited the opinions of other countries in favor of General Khalifa Haftar who opposed the government.
For Turkey, its attitude and commitment are reasonable because the government it supports is internationally recognized. From Ankara came strong criticism of France of Erdogan's policies. A spokesman for the Turkish Foreign Ministry said that France only increased tension in Lybia. France, Egypt and the United Arab Emirates are supporters of the rebel General Khalifa Haftar.
Indeed the path of violence is not the best way to resolve disputes that have manifested in war. The attitudes and decisions of foreign parties, both those supporting the Government and the rebels, especially in the form of the military and weaponry, have proven to be increasingly fueling wars. The government and the rebels not only feel they have moral support, but also political, military and weapons support. The war keeps on going, Lybia's natural resources continue to be depleted, people are divided and increasingly suffer from the chaos that has eroded people’s life, especially the economy.
The United Nations views the importance of a peaceful effort to resolve the conflict in Lybia which has lasted for almost ten years. This UN initiative needs to be supported. There must be concrete steps to encourage the government and rebels in Lybia to sit at one table. Foreign countries whether supporting the government or vice versa must hold back. There needs to be other countries or parties who are willing and able to become mediators with UN support. Otherwise Lybia will be increasingly torn to pieces by war and its people will suffer even more.
June
Government Postpones Discussion about the Bill of Pancasila Ideology
Written by Maryati
The Indonesian government announced to delay the discussion about the bill of Pancasila Ideology last week. Coordinating Minister for Political, legal, and security affairs, Mahfud MD said, the government also asked the House of Representatives -DPR as the initiator of the bill to further absorb the people’s aspirations.
The bill has brought about a public controversy. It contains Trisila and Ekasila clauses for one of its reasons. The concepts of Trisila and Ekasila are contained in article 7 with three verses. Paragraph 1 mentions the main characteristics of Pancasila which are justice and social welfare with the spirit of family is that there is a combination of the principle of deity, humanity, unity, societal/political democracy and economy in one unity. Verse 2 states that the main characteristic of Pancasila is Trisila, consisting of socio-nationalism, socio-democracy, and cultural deity. Verse 3, Trisila as referred to in the paragraph (2) are crystalized in the Ekasila, i.e. mutual cooperation/assistance. The discussion about this bill was judged to have no urgency and was vulnerable to ideological conflicts. Many circles argue that the concept of Pancasila to become Trisila and Ekasila is a form of betrayal of the nation and state ideology.
The government has a number of reasons for postponing the discussion about the bill; one of which relates to its substance aspect. President Joko Widodo affirmed that the decree of the People's Consultative Assembly No. XXV/1966 is still valid, binding and no need to be questioned. Such decree cannot be revoked by the State institution or the draft rules that are rolled out by the House of Representatives themselves. The government sees that the legitimate formulation of Pancasila is the one ratified by the Preparatory Committee of Indonesian Independence on 18 August 1945. This means that there is no need for any discussion about new ideological formulation outside Pancasila.