Ukraine invasion impact (Feb. 18-25)
Ukraine invasion impact (Feb. 18-25)
Indonesia feels pinch from Russia's invasion of Ukraine
Hello Coconauts,
Around the world, our thoughts are with the people of Ukraine as Russia moved forward with its invasion of the East European nation. All the way here in Indonesia, we may be far from the horrors of warfare, but the country is nevertheless bracing for possible major economic and political impacts.
More on that topic below, as well as the most important stories from Indonesia over the past week.
As is custom at the end of every month, this Indonesia Intelligencer edition is free to read for all. Do hit the subscribe button to get premium access to this newsletter.
As always, stay healthy, stay Mnformed, and we’ll see you next week!
Business and the economy
JETCO is go
Indonesia and the UK held their first meeting of the Joint Economic and Trade Committee (JETCO) in Jakarta this week, committing to increasing bilateral trade and investment, particularly in food and drinks and agricultural commodities.
The two also explored the possibility of a free trade agreement (FTA), which Indonesian Trade Minister Muhammad Lutfi might materialize soon. The UK is especially keen on strengthening relations with non-traditional partners following its exit from the EU.
The UK is currently not a major trading partner for Indonesia. In 2021, imports and exports between the UK and Indonesia only accounted for less than 1 percent of the latter’s total trade volume.
Invasion impact
The Indonesia Composite Index (IHSG) plunged 1.48 percent to 6,187.82 at Thursday’s close following news of Russia’s invasion of Ukraine. A global spike in crude oil may also affect local prices.
While it might be too early to call, some experts have predicted that the impact from the conflict on Indonesia’s economy won’t be too great nor prolonged due to a multitude of other factors at play.
Fake it until you make it…
…on the US’ fake goods and copyrights piracy watchlist. In the 2021 edition of the list, Indonesian online marketplaces Bukalapak, Tokopedia, and the Singapore-based Shopee were all flagged for providing platform for counterfeit goods, including clothing, books, and cosmetics.
Bukalapak and Tokopedia both said that they are committed to protecting intellectual property rights and eradicating counterfeit goods on their platforms. They also pointed to existing features in which customers can report suspected knock offs on their respective platforms.
e-Mbition
During the launch of an electric vehicle ecosystem in South Jakarta this week, President Joko Widodo outlined the government’s ambition to put at least 2 million EVs on the road by 2025 while continuing to grow the country’s export capacity.
Jokowi said Indonesia is strongly committed about transitioning to the use of new renewable energy, as steps have been taken on the road to becoming an electric vehicle and battery production hub to capitalize on the country’s abundance of raw material supplies.
Hydropower
On Friday, Jokowi inaugurated a hydropower plant in Poso, Central Sulawesi. The plant is a peaker, meaning that it is most active when energy demand is at its peak.
The plant taps into energy from Poso Lake and has a total production capacity of 515 megawatts, making it the biggest hydropower peaker in the country.
Hooray-o
Mondelez International, one of the world’s largest snacks companies, announced that it has invested US$23 million to expand its Oreo production line in Indonesia.
Indonesia is a top-five Oreo market. With the investment, Mondelez aims to meet growing local and export demand in 35 countries across Southeast Asia and the broader Asia Pacific and Middle East region.
Kenz charged
Indra Kenz, a “crazy rich” influencer affiliated with unlicensed binary trading platform Binomo, has been arrested and may face up to 20 years in prison for financial fraud.
Kenz, known for flaunting his jet-setting lifestyle online, previously flew to Turkey as police sought to question him regarding his involvement with Binomo.
The Trade Ministry's Futures Exchange Supervisory Board (Bappebti) previously said it blocked 1,222 investment platforms, including Binomo, throughout 2021 on grounds that they were unregistered and/or served as fronts for gambling.
“To the heaven”
In another edition of celebrities launching crypto tokens, Wirda Mansur, the daughter of famed Islamic cleric Yusuf Mansur, launched I-COIN, which her father said would overshoot the moon and head “to the heaven.”
Yet since its launch on Feb. 17, the coin has depreciated in value by 60 percent as of Thursday. Yusuf then called on I-COIN owners to keep praying to God.
Recommended read
Penyalin Cahaya and the economy of feminist films (Indonesia at Melbourne)
But the commercial release of these films is also a sign of the growing commodification of feminist issues – their financial backers see feminist themes as publicly acceptable and able to generate profit. Penyalin Cahaya is a major studio film with financial backing from two major film companies: Kaninga Pictures and Rekata Studio.
Across the archipelago
Stop the war
Indonesia joined a chorus of condemnations against Russia’s invasion of Ukraine, with President Joko Widodo tweeting, “War brings misery to mankind and puts the whole world at risk.”
The Ministry of Foreign Affairs called for negotiations and diplomacy to prevent bloodshed, but said it would not “blindly follow the steps” of other countries and impose sanctions on Russia.
The ministry said 183 Indonesians are living in Ukraine, the majority of whom reside in the capital Kyiv and the port city of Odessa, both of which were under attack on Thursday. Indonesia has asked its citizens to gather at the embassy for a possible evacuation.
mRNA hub
The World Health Organization (WHO) has entrusted Indonesia with mRNA-based vaccine technology transfer, meaning the archipelagic nation can become a hub for COVID-19 vaccine production in Southeast Asia.
State-owned pharmaceutical firm Bio Farma, already a major vaccine producer in the region, will be tasked with producing the mRNA vaccines. Other than for COVID-19, the firm will also produce vaccines developed to fight against other diseases such as malaria, TBC, and cancer.
WHO is aiming to close the gap on global vaccine disparity with the technology transfer to Indonesia and other developing countries.
3 months and boost
The elderly (aged 60 and above) can now get their COVID-19 booster shots after a three-month interval from their second dose, the Ministry of Health said, as it seeks to expedite booster dose rollout and better protect the population.
The ministry is also mulling reducing the interval period from six months to three for all age groups, and may update booster shot guidelines in the near future.
Loud criticism
The Ministry of Religious Affairs issued fresh guidelines on mosque loudspeakers, which, among other things, advised the Islamic houses of worship to keep calls to prayer below 100 decibels. Naturally, the guidelines were met with derision from major Islamic groups.
Minister Yaqut Cholil Qoumas caused further controversy by comparing noise from loudspeakers to barking dogs. A complaint against Yaqut has been rejected by the Jakarta Metro Police, but it appears there will be further attempts to have the minister charged with blasphemy.
Hey, Arnold!
An Indonesian influencer by the name of Arnold Putra, who previously shocked the fashion world when he flaunted a handbag made of “ethically sourced” human spine, is in the midst of another controversy after he allegedly ordered human body parts from Brazil.
Arnold hit back against the allegation in a statement received by Coconuts. Nevertheless, an investigation involving Interpol is ongoing.
Recommended read/listen
The women of West Papua's independence movement (ABC Radio)
For more than 50 years, West Papua has been a site of conflict between its Indonesian government and many Indigenous West Papuans seeking independence. Human rights groups claim that up to half a million people have been killed, resources have been stripped, land grabbed and tens of thousands of people displaced through violence.
History repeats: Langkat case exposes the long history of slavery on plantations (Indonesia at Melbourne)
The case underlines the many connections between modern slavery and corruption. Perpetrators of modern slavery and human trafficking are often able to get away with their crimes by bribing or influencing government officials, practices often referred to in Indonesia by the broad term “judicial mafia”. This has long been the case in East Nusa Tenggara, where human trafficking remains rampant.
Top Coconuts Jakarta stories this week
Indonesian adult model Novi Amelia plunged to her death from 8th floor Kalibata City apartment
Arnold Putra hits back at ‘speculation’ linking him to trafficking of human body parts in Brazil
Major Islamic party rejects gov’t’s new guidelines muffling mosque loudspeakers
Bali’s Monsieur Spoon opens third Jakarta location at PIM’s Street Gallery
Top Coconuts Bali stories this week
