INDONESIA OUTLOOK

From FT.com Dini Shanti, a web marketer, struggled for years to pay the rent and put food on the table for her two children. Yet in the past 24 months she has moved into a new home, bought her retired father a car and begun paying into investment funds and a life assurance policy. Her rapid climb to financial security was, until recently, a rare story in Indonesia, a young democracy of nearly 240m people and one of Asia’s fastest-growing economies. But in the coming decade, more than 60m low-income workers are poised to join her in what will be the coming of age of Indonesia’s middle class. That projected boom will also make Indonesia - already a member of the Group of 20 nations and the largest south-east Asian economy - the fastest-growing consumer market after India and China. Big retailers, banks, carmakers, insurers and consumer goods producers are tapping the growth, posting record profits this year. For complete report, visit here

From Brookings.edu President Obama’s visit to Indonesia is not only personal but political. He will have the opportunity to visit the home where he lived as a young boy and the primary school he attended and learned the local language. None of the other 43 American presidents have had this kind of exposure to a non-Western country. One of the president’s political objectives for this trip is to raise Indonesia’s global profile. Many Americans underestimate the significance of Indonesia—often described as the most important country in the world that people know the least about. With 230 million inhabitants, it is the fourth most populous nation after China, India, and the United States. Eleven years ago, it began an impressive transition from 30 years of authoritarian rule by former President Soeharto to become arguably the most democratic country in all of East and Southeast Asia. What makes the transition all...

From FT.com Indonesia on Wednesday announced better than expected figures for 2009 growth in gross domestic product, making it one of the fastest growing economies in the G20 group of nations. Indonesia posted 4.5 per cent annual GDP growth for 2009, down from 6.1 per cent in 2008. Fourth-quarter growth was 5.4 per cent year-on-year, the fastest level since the third quarter of 2008. The economy has held convincingly on to positive ground throughout the financial crisis and seen growth accelerate in the fourth quarter. For detail story, visit here

From the Jakarta Globe.com While last week’s Copenhagen climate talks may have been considered as a lost opportunity to reach a binding agreement to slow down global warming, Indonesia stands to gain more than it bargained for, Rachmat Witoelar, executive chair of the National Council on Climate Change, said on Wednesday. “[The conference] was not a failure and Indonesia was satisfied with the accord because it reflected our five major demands, as delivered officially by President Susilo Bambang Yudhoyono,” Rachmat said. He was referring to the president’s speech at the convention in which he demanded a strong commitment to reduce emissions, significant funding from developed countries and the continuation of the Reduced Emissions from Deforestation and Degradation (REDD) scheme. Rachmat said there was still time for the accord to be transformed into a legally binding agreement at next year’s climate talks, which are expected to be held in Mexico. “The agreement, however, is morally bi...

From Xhinhuanet.com Prominent power firm and lenders from Russia, Japan, Kuwait and Germany have pledged their interests to take part in Indonesia's huge power plant projects expected to commence next year, a local media report said Saturday. Fahmi Mohtar, Director of Indonesian state-run power firm, PT Perusahaan Listrik Negara (PLN), conveyed that he had received representatives of those power firms who conveyed their interests, according to the Detik.com. The Russian power firm, United Energy System of Russia (RAO UES), wanted to take part in the construction of Indonesia's hydropower plants, coal-fired power plants and geothermal power plants, Fahmi was quoted as saying. For detail story, visit here

From Bernama.com The Indonesian government will provide tax refund for foreign visitors to purchase goods from April next year, an official said here Tuesday, reports China's Xinhua news agency. The visitors can have the refund when leaving from Soekarno Hatta Airport in Jakarta and Ngurah Rai Airport in Bali, said Djoko Slamet Surjoputro, director of Public Relations with the tax office. For detail story, visit here

From the Jakarta Post Indonesia and France have agreed to step up their bilateral relationship through a planned launch of what leaders of the two countries called an “unlimited strategic partnership”. President Susilo Bambang Yu-dhoyono met with French counterpart Nicolas Sarkozy on Monday to discuss the issue, upon which they agreed on enacting the partnership starting next year when Indonesia and France were to celebrate the 60th anniversary of the two countries’ bilateral relationship. Indonesian Foreign Minister Marty Natalegawa told reporters after the meeting between the two presidents at Elysee Palace in Paris that Yudhoyono had invited the French president to visit Indonesia to co-launch the strategic partnership. “There is willingness between the two countries to begin a strategic partnership. France has firmly stated that Indonesia has gained more influence globally, and wants a without-limit strategic partnership [with Indonesia],” said Marty. “The planned visit of Presiden...