Hello Coconauts!
While most of the world suffers during the pandemic, there are undeniably those who profit from it, as the law of economics goes. A new report has projected that the growth rate of the super wealthy is highest in Indonesia, with “crazy rich Indonesians” among those most bullish about the country’s economic recovery ahead.
Of course, this only highlights the wealth gap problem in Indonesia, as those in poverty continue to be left further behind. The projection is certainly nothing to be proud of, as we’d take more crazy middle class Indonesians over the crazy rich any day.
Stay safe and we’ll see you next week!
COVID-19
Back to school in July
Indonesia began vaccinating teachers this week, with the aim of inoculating 5 million educators in the next five months. President Joko Widodo says he hopes schools can once again conduct face-to-face learning when the new academic year in July.
Teachers are among professions selected for the second phase of Indonesia’s mass vaccination program, which is targeting public facing workers and the elderly.
Contentious priority
Another group that received their COVID-19 vaccines this week were House of Parliament (DPR) members and their families and staff. There was reportedly a failed attempt to stop news of the vaccination from going out to the public to avoid accusations of privilege for politicians.
Perhaps more controversial was the vaccination of dozens of graft suspects currently detained by the Corruption Eradication Commission (KPK). Among the detainees was former Social Affairs Minister Juliari Batubara, who is facing calls for the death penalty for allegedly embezzling COVID-19 relief funds.
Gotong Royong vaccination
The government has officially launched the country’s independent vaccination program, which allows companies to purchase vaccines from the government to give to their employees for free.
To avoid disrupting the government’s own mass vaccination program, the independent program, dubbed Vaksin Gotong Royong referring to the Indonesian phrase meaning mutual assistance, cannot administer vaccines from the government’s supply. The vaccinations must also take place at separate locations from the government’s program.
A gradual dip
Some hopeful news from the case numbers front this week, as Indonesia’s active cases gradually dropped amid increased testing and decreasing positivity rate.
On Feb. 23, Indonesia recorded a positivity rate of 17.58 percent — the first time the rate has dropped below 20 percent this year. The trend continued throughout the rest of the week, with the positivity rate going down to 14.35 percent the next day and up on Feb. 25 to 16.97 percent.
The number of active cases dropped during that time, with Feb. 24 being a particularly good day as more recoveries (7,735) were recorded than new cases (7,533). As of Feb. 25, Indonesia has 157,705 active cases, a gradual dip from 160,494 active cases a week prior.
Deaths also contribute to the decreasing number of active cases, with Feb. 23 being a particularly bad day as 323 COVID-19 patients died — the highest daily death rate in February.
As of Feb. 25, Indonesia has recorded 1,314,634 cases, including 1,121,411 recoveries and 35,518 deaths. On the vaccination front, 1,461,920 people have received their first of two mandatory shots of the vaccine, while 853,745 have received their second.
Recommended read
Government pins hopes on COVID-19 vaccines. But do Indonesians really want it? (The Jakarta Post)
As Indonesia rolls out its COVID-19 inoculation program for second priority recipients, public doubt remains a challenge alongside the limited vaccine supply. The latest survey by the Centre for Strategic and International Studies-Jakarta (CSIS) found that 42.5 percent of respondents in the nation’s capital said they either strongly or moderately distrusted the efficacy of COVID-19 vaccines.
Business and the economy
Crazy Rich Indonesians
Some fat Indonesian wallets are about to get a whole lot fatter, with an upcoming report from London-based consultancy Knight Frank projecting that Indonesia will see a 67 percent annual rise in the number of people becoming ultra-high-net-worth individuals through 2025.
That puts Indonesia at the top of the global super wealthy growth list, beating India at 63 percent and mainland China at 46 percent. The report categorizes the super wealthy as those who have a net worth of at least US$30 million.
The report says wealth and business in Indonesia has grown thanks to a rapidly growing middle class and major improvements in technological capabilities and infrastructure. The projection bets on Indonesia’s economic recovery from COVID-19 and the success of its mass vaccination program.
While the privileged few are able to dream big, the latest data from September 2020 showed that 27.55 million Indonesians are living below the poverty line — a 0.96 percent year-on-year increase attributed to the economic downturn due to COVID-19.
Job Creation Law gets rolling
The government this week passed 45f Government Regulations (PP) and 4 Presidential Regulations (Perpres) detailing aspects of the Job Creation Law, which was passed in 2020 to spur direct investment and economic growth in the country.
One regulation has erased Indonesia’s negative foreign investment list and replaced it with a “priority list,” which offers tax incentives or tax breaks for foreign investments on certain sectors such as coal gasification and the smelting of copper and nickel ores.
Some regulations may not be partial to workers’ rights even if more jobs will be created thanks to the law. For example, companies can now permanently hire contract workers after five years of employment instead of three previously, while struggling companies can pay half of their employees’ severance pay if they’re forced to conduct layoffs.
Tesla still interested
Following news that Tesla has decided to set up a car manufacturing factory in India despite months of rumors that the company was going to make a major investment in Indonesia, Coordinating Investment Minister Luhut Pandjaitan dispelled concerns that Tesla had lost interest in the Southeast Asian nation by saying there were no plans to build a car factory here to begin with.
Instead, Luhut said, Tesla’s numerous business arms are more interested in tapping into Indonesia’s abundant nickel resources, with the production of lithium batteries for electric vehicles touted as a sector Tesla may invest in.
Coal gasification
Indonesia, the world’s largest exporter of thermal coal, is set to adapt to cooling interest in the commodity with state-owned mining giants piling into coal gasification projects. Coal gasification can create a range of fuel products with lower emissions.
The Indonesian government is supporting coal gasification plans for the purpose of reducing carbon emissions and improving its international trade policy.
Traveloka fintech expansion
Indonesia-based Traveloka, Southeast Asia’s largest online travel startup, is planning to launch financial services in Thailand and Vietnam as the business is seeing a strong rebound in its business after COVID-19 plummeted demand.
Traveloka is developing “buy now, pay later” services for its Thai and Vietnamese markets. The startup has extended 6 million loans for online travel purchases in the two years an equvalent service has been available Indonesia.
MS Data Center
American tech giant Microsoft has announced plans to build its first data center in Indonesia, which could help generate US$6.3 billion in revenue and create jobs for 60,000 people over the next four years.
The Colonel’s dominance
KFC is set to open at least 25 new restaurants in Indonesia this year, as the most popular fast food chain in the country shrugs off the effects of the pandemic and aims to continue to assert its dominance. KFC currently has 738 restaurants in Indonesia.
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As Shopee succeeds in Southeast Asia, rivals such as Tokopedia are heating up the competition (South China Morning Post)
Some of these companies have responded by joining forces or beefing up their resources. Gojek and Tokopedia, the two most valuable technology companies in Indonesia, are reportedly in talks for a merger that would create a company with an estimated value of US$18 billion. This “super app” behemoth would be a one-stop app catering to users’ multiple needs, from ride-hailing to booking flights and digital payments.
Across the archipelago
Flooded capital
Five people, four of whom were children, were killed when intense rain triggered floods throughout the Greater Jakarta Area last weekend. Some 5,000 people had to vacate their submerged homes at the peak of the capital’s flooding.
The Jakarta provincial government took the heat for the flooding — the deadliest since NYE 2020, during which 67 people were killed in floods and landslides — as poor river restoration was blamed for the disaster.
Cyber cops
Talks of revising the controversial Information and Electronic Transactions Act (UU ITE) has led to the formation of the Virtual Police, a cyber patrol branch within the National Police. The cyber cops can send direct messages to internet users warning them to take down content that may violate UU ITE.
While the National Police say the Virtual Police may suppress the number of unnecessary prosecutions under UU ITE, activists are concerned that the cyber cops pose another threat to freedom of speech and the privacy of internet users in Indonesia.
A nation of trolls
The Virtual Police should have a field day everyday as Indonesia came last in Southeast Asia in Microsoft’s study about digital civility around the world. Among the many threats Indonesians face online, most of them come in the form of misinformation and scams.
Proving Microsoft’s point, Indonesian netizens duly flooded the American tech company’s social media pages with vitriol, out of anger at their country being named the least digitally civilized in the region.
Familiar faces for president
Defense Minister Prabowo Subianto, Central Java Governor Ganjar Pranowo, and Jakarta Governor Anies Baswedan are among the frontrunners for the 2024 presidential election, two surveys recently showed, with President Joko Widodo set to step down that year after serving two terms as the head of state.
Prabowo, who lost in the last two elections against Jokowi before becoming the incumbent’s defense minister, is the favorite to win in 2024 should he decide to run again.
Blasphemous bath
Four male health workers in North Sumatra were recently charged with blasphemy after they allegedly performed an Islamic bathing ritual on a deceased female COVID-19 patient, with whom they had no familial relations.
Following public outcry over the case, the region’s district attorney dropped the blasphemy charges, citing insufficient evidence.
Top Coconuts Jakarta stories this week
Indonesia’s Timo Tjahjanto to direct remake of Korean zombie flick ‘Train to Busan’
Indonesian nurse dies from COVID-19 before receiving second vaccine shot
4 male health workers charged with blasphemy for bathing deceased female COVID-19 patient
Indonesian TikTok star Fadlan Holao apologizes after posting suicidal intention on Instagram
Top Coconuts Bali stories this week
Governor says new presidential regulation opens up investment opportunities on Balinese arak
Bali police arrest Russian fugitive wanted by Interpol after 2 weeks on the run
American woman found dead on Bingin Beach likely fell off cliff: police
Authorities in Karangasem regency investigating alleged misappropriation of mask procurement fund