Will Jokowi Reform Economic Growth of Indonesia?

20141016Joko-Widodo---Time

 

Defeating Prabowo Subianto in Indonesia presidential election, more hardships and tasks are placed on the shoulder of Jokowi Widodo. He is expected to boost the economy growth rate that was declining for the past few years. Unlike its neighbouring countries like China or Thailand, Indonesia does not produce enough goods to export. Their manufacturing industry share remains as an outlier compared to others.

 

What should be done?

According to Gabriel Domínguez blog, Indonesia should take part “first hand” on power generation, shipping and ports in order to create a more competitive environment. Hence, catalyzing the process of economic growth.

I agree with his opinions because by participating more in global supply chains, soon Indonesia will realize what are the specialities and comparative advantage which is essential in generating employment and importing newer technology. Jokowi needs to embrace democracy by allowing more international trade, investment, people and ideas.

However, it is stated that Indonesia has been attracting foreign investor due to cheap labor, land and capital. The problem now is how to maintain the interest of foreign investors to keep investing in Indonesia.

Personally for an Indonesian citizen like me, I think it would be best if Jokowi can open up more company’s ownership to foreigners. But, not in excess so it can balance out ownership between international and domestic company. Solving the infrastructure within the country will attract more foreign investors. If public transports are working perfectly, it would be more convenient for companies to transport goods from one place to another. Eliminating all the documents hassle that needed to process when some goods are imported or exported from or into Indonesia will benefit both traders. This will encourage investors to do business with and in Indonesia which surely will boost the economic growth.

 

First Nations

First Nations declared a vast area in Chilcotin to be theirs including mining and fishing area that was targeted by Taseko Mines Ltd.’s Fish Lake. While First Nations start to gain its identity back, it gets in the way for business to grow. Taseko is facing a huge obstacle in earning much profits and obligation to obey the laws simultaneously.

In this article it is stated that, First Nations prohibit any large mining, fishing and logging activities due to damage to habitat. From my perspectives, Taseko industries will have difficulties in expanding $1.1 million copper-gold mining project. They do not have any bargaining chips to negotiate with First Nations government. The main debate in here was Taseko and First Nations have different goals. First Nation clearly wants to claim land that once was theirs while Taseko industry are eager exploit the land to collect gold and copper. Taseko is highly encouraged to build relationship and earn trusts from government.

However, since First Nations government allows small amount of logging and mining to provide Tsilhqot’in tribe job opportunities, it is possible to continue the project but at a very slow pace. I would recommend Taseko to focus on previous, already stable project first such as Aley Niobium Project into perfection. Instead of focusing on the opportunities, the strength (Aley Niobium project) will likely to earn more profits.

Facebook Ads Will Now Follow You No Matter What Device You’re Using

After purchasing Instagram in 2012, Mark Zuckerberg bought another marvellous software called “Atlas” which is created by Microsoft. Atlas is an  application that provide service by following potential consumers in online advertising. Instead of appearing ads on laptop only like what “cookies” did, Atlas enables ads to pop up in every gadget including cell-phones. This enables advertiser a more accurate percentage whether consumers are akin or despise it.  Facebook will have a fiercer battle on who is better in advertisement industry and social media.

However, Facebook’s users privacy is at stake. In this article, Mark Zuckerberg is so determined to sell “some” of user’s personal information to advertising companies because he believes that is how business works. By publicising personal taste and preferences, some people felt threatened and insecure because strangers will have access to their life. Facebook is already crossing the line of privacy which ignites the fire growth of Ello (social media that promise to never sell any personal user’s information).

From my perspectives (which are supported by this article), to keep social media afloat, you need to have some support by signing contacts with advertisement industry. Otherwise, it may lead to bankruptcy. It is possible to find sponsorship or fund raising. However, these processes are not reliable because it will be difficult to convince companies to invest money on a project which will require constant donation. By selling some of personal information, both business and users benefit from it. Facebook earn more profits and satisfy users to a great extent by providing good maintenance and entertainment.  As an example, even after users including me know what Facebook is planning to do, we as the users keep posting photos and thoughts and other personal information on Facebook. Most of users are ignorance to this situation. Hence, it is a win-win situation.