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For Indonesia, which is keen to accelerate its infrastructure development, Belt and Road Initiative (BRI) is seen as an opportunity to tap into China's huge financial resources and technological capability. There has however been no concrete BRI project agreed to between China and Indonesia so far. While China considers all projects, including infrastructure projects and economic interactions as part of BRI, Indonesia only considers those infrastructure projects initiated during the Xi Jinping period as BRI projects. Indonesia has offered several broad areas for cooperation under the BRI framework and carefully selected project locations to minimize political risk for the Joko Widodo government. But no agreements have been signed yet as China requires detailed project proposals from Indonesia, which it has apparently not received. What appears to hamper progress are four key issues: the perception of China's economic domination, the ethnic Chinese issue, the Natuna issue, and the mainland Chinese workers issue.
This article reports the findings of an online survey conducted in November-December 2021 on Indonesians' experience and perception of fintech tools, focusing on fintech adoption in the Greater Jakarta region, which besides Jakarta, includes Bogor, Depok, Tangerang and Bekasi. One key finding is that, in the Greater Jakarta region, socio-economic status as measured by income is not a key determinant of fintech adoption. This is likely due to the more developed and mature ICT infrastructure in the Greater Jakarta region, which makes fintech tools readily accessible. However, the kinds of fintech tools that are more likely to be used-M-banking, E-wallet, Online Lending, Investment, Donations, and so on-are influenced by factors such as income, education, gender, age and occupation, suggesting that different fintech tools appeal to different groups in society according to their needs and resources. Psychological factors that are important in the adoption of fintech include having many choices in the needed financial services and feeling in control. While fintech users are concerned about data leaks and fraud, this does not deter them from using fintech. It may be anticipated that with the deepening of ICT infrastructure and public education on the safe use of fintech, fintech usage in Indonesia will continue to spread throughout the country.
By any indicator, Indonesia, the fourth most populous nation on earth, is a development success story. Yet 20 years after a deep economic and political crisis, it is still in some respects an economy in transition. The country recovered from the 1997-98 crisis and navigated the path from authoritarian to democratic rule surprisingly quickly and smoothly. It survived the 2008-09 global financial crisis and the end of the China-driven commodity super boom in 2014 with little difficulty. It is now embarking on its fifth round of credible national elections in the democratic era. It is in the process of graduating to the upper middle-income ranks. But, as the 25 contributors to this comprehensive and compelling volume document, Indonesia also faces many daunting challenges - how to achieve faster economic growth along with more attention to environment sustainability, how to achieve more equitable development outcomes, how to develop and nurture stronger institutional foundations, and much else.
To Singapore's immediate south, Indonesia's Riau Islands has a population of 2 million and a land area of 8,200 sq. km scattered across some 2,000 islands. The better-known islands include: Batam, the province's economic motor; Bintan, the area's cultural heartland and site of the provincial capital, Tanjungpinang; and Karimun, a ship-building hub strategically located near the Straits of Malacca. Leveraging on its proximity to Singapore, the Riau Islands-and particularly Batam-have been a key part of Indonesia's strategy to develop its manufacturing sector since the 1990s. In addition to generating a large number of formal sector jobs and earning foreign exchange, this reorientation opened the way for a number of far-reaching political and social developments. Key among them has been: large-scale migration from other parts of the country; the secession of the Riau Islands from the larger Riau Province; and the creation of a new provincial government. Adopting a multidisciplinary framework, this book explores three issues: what have been the social, political, and environmental effects of the rapid economic change set in motion in the Riau Islands; to what extent can or should the province seek to reconfigure its manufacturing-based economy; and how have the decentralization reforms implemented across Indonesia affected the Riau Islands.
ISEAS – Yusof Ishak Institute has commissioned a second nationwide survey in Indonesia as a follow-up to the first similar project in 2017 called the Indonesia National Survey Project (INSP). Its broad aim is to enhance understanding of political, economic, and social developments in Indonesia. Its key findings are as follows: The approval rating of President Joko Widodo hovers around 71.8 per cent, at least before the September 2022 announcement on the fuel subsidy cut. His major infrastructure push as his flagship development programme still garners the most positive assessment. However, poverty, unemployment and cost of living remain key flashpoints that the government should be concerned with.
This book represents a synthesis of research findings on energy in remote rural areas in East Nusa Tenggara in Indonesia, demarcating a localised understanding of electricity issues that are relevant to similar community profiles in other developing countries, which are facing similar challenges. The authors discuss several key issues relating to electricity access in the Indonesian context, such as government energy expenditure and policies for geothermal development. The book also presents empirical estimates of the social effects of electricity access. In focusing on an underdeveloped area in eastern Indonesia affected by innumerable problems relating to poverty, the book contributes to related discussions on the first Sustainable Development Goal in proposing possibilities for poverty reduction vis-a-vis improved energy infrastructure. It demonstrates the impact of electricity access on people's welfare. Co-published with the Indonesia Institute of Science (LIPI), this updated edition is a valuable reference for policymakers and scholars interested in the electricity sector in Indonesia and rural areas in developing countries elsewhere. It appeals to specialists researching and working in the energy sector and is also interested in scholars and practitioners focused on sustainable development and Indonesian policymaking more broadly.
As the first directly elected Indonesian president, Susilo Bambang Yudhoyono (SBY) served at a crucial juncture in Indonesia's history. Succeeding the three short presidencies of BJ Habibie, Abdurrahman Wahid and Megawati Sukarnoputri, his presidency had a lot to prove. While critical assessment of SBY's domestic policies have been undertaken, less attention has been paid to his foreign policy. This volume seeks to fill this gap by examining key foreign policy issues during SBY's tenure, including bilateral relations, Indonesia's involvement in international organizations, and pivotal issues such as international labour and terrorism. The book provides an assessment of the direction of his foreign policy and management style, paying particular attention to his concerns over Indonesia's territorial integrity and sovereignty, the significance of international institutions, and Indonesia's right to lead.
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