2015 at a Glance: the Great, the Bad, in addition to the Shocking
2015 was pivotal for Indonesia in many ways, in addition to the item’s important to take stock of the 12 months that will have passed. We’ve taken the liberty of compiling a list of key events that will are likely to shape Indonesia’s business culture, macro-economy, in addition to political landscape going forward in 2016.
Transport Ministry suspends AirAsia Indonesia
Following the disappearance in addition to fatalities of 162 passengers on board AirAsia flight QZ8501 coming from Surabaya to Singapore on Sunday, December 28, 2014, the nation’s Transport Minister Ignasius Jonan temporarily suspended the airline’s Surabaya-Singapore route.
The reason for doing so was that will the firm allegedly violated operational hours. Reportedly, the plane did not have a permit to fly on days additional than Mondays, Tuesdays, Thursdays, in addition to Saturdays. However, AirAsia Indonesia’s safety in addition to security division claimed the airline complied with all rules in addition to schedules.
the item was later discovered that will the plane went down inside the sea near Kalimantan due to rudder problems.
February 2015
KPK in addition to national police go to war
The police took revenge on the KPK by targeting its commissioners for criminal investigations. Bambang Widjojanto was accused of forcing a witness to commit perjury in a 2010 election dispute case. The police also questioned the KPK’s Chief of Ethics Abraham Samad, in addition to released photos of him with women. Adnan Pandu Praja was accused of fraud involving a timber company in 2006.
The list of accusations went on. inside the end, the president withdrew his nomination for Gunawan as Police Commissioner General.
March 2015
Expats don’t actually need to speak Indonesian
In January, the Minister of Manpower made a controversial statement, saying foreigners would certainly be required to take a local language exam if they sought employment in Indonesia.
The idea raised eyebrows coming from foreign in addition to local businesses, as the item would certainly surely make the item more difficult for foreigners to obtain work permits. Ultimately, language exams were deemed an unnecessary burden.
Coordinating Minister for Economy, Sofyan Djalil, later said the idea “was just discourse”, in addition to that will the policy would certainly never be implemented. The plan was likely withdrawn because powerful domestic companies that will currently employ foreigners put pressure on the ministry.
Eight drug smugglers executed by firing squad
April 2015
Drug smugglers executed
Despite outcry coming from countries including Australia, Brazil, France, in addition to the Philippines — as well as human rights activists in addition to the United Nations — Indonesia executed eight out of nine drug smugglers. Filipina Mary Jane Veloso’s execution was postponed at the very last minute to investigate further on her supposed status as a victim of human trafficking.
Australia’s Prime Minister Tony Abbott said his nation’s relationship with Jakarta “has suffered as a result of what’s been done.” Immediately after the executions, Australia recalled its Ambassador to Indonesia.
The flags of ASEAN nations raised in MH Thamrin Avenue, Jakarta, during 18th ASEAN Summit, Jakarta, 8 May 2011.
May 2015
Labour Union bemoans ASEAN Economic Community
On May 1, the Federation of Indonesian Labour made several demands of the government. Federation Chairman Santoso Widodo said the list of requests was a wakeup call for the government to take action against industries that will marginalized labourers.
In addition to a great deal of political noise, the Federation called for the government to withdraw its commitment coming from the ASEAN Economic Community (AEC). The AEC will allow free movement of people, goods, in addition to services across the region to achieve an aggregate gross domestic product of US$2.5 trillion in addition to trade business worth US$1 trillion.
Some workers see Indonesia’s participation inside the AEC as a bad thing because the item would certainly theoretically increase competition for jobs inside the archipelago.
June 2015
Illegal sand dredging off Jakarta bay
In June, Thousand Islands Reagent Tri Djoko Sri Margianto reported Kapuk Naga Indah, a subsidiary of property developer Agung Sedayu Group, to Governor Ahok in addition to the national police for stealing sand. The reason for the theft was reportedly for the purpose of building islands inside the proximity of Jakarta Bay.
The People’s Representative Council said sand theft could lead to deterioration of the local marine ecosystem in addition to the item’s possible that will more incidents like that will could cause the Thousand Islands to disappear for Great.
Airports close as volcanoes erupt
Surabaya’s Juanda international in addition to two additional airports closed after two volcanoes blasted ash in addition to debris into the air. The closures came as millions of Muslims were returning home to celebrate the end of Ramadhan.
The week prior, travellers were also marooned when Ngurah Rai International Airport in Bali closed because of the eruption of Mount Raung, one of the most active volcanoes on Java. Four additional airports inside the region were also closed, leaving thousands of tourists stranded. Financial losses were reported to be worth billions of rupiah.
The precautionary closures came during a time of sensitivity in addition to heightened turmoil for the aviation industry in Indonesia.
Widodo reshuffles cabinet
Economic growth slipped to a six-year low after Jokowi took office, in addition to frustration grew inside the business community over some of President Jokowi’s more contradictory policy signals.
Following a survey showing the people’s satisfaction levels toward Jokowi’s administration declined coming from 60 percent to 50 percent, the President decided to replace six ministers.
Jokowi said the adjustment was essentially a bid to boost an ailing economy, though analysts predicted the step would certainly have little immediate impact.
Indonesia’s worst haze episode ever
Indonesia saw a record-breaking number of fires in Kalimantan in addition to Sumatra that will year. In early September, the Indonesian National Board for Disaster Management declared a state of emergency in six provinces. The smoke caused by the fires had destructive effects on neighbouring countries, Singapore in addition to Malaysia.
Indonesia lost troves of biodiversity, however the haze also represented a step backward coming from the government’s voluntary commitment to a minimum 26 percent reduction in greenhouse gas emissions by 2020.
According to complaints filed by locals to the National Human Rights Commission, the haze caused 43,386 people in Riau in addition to 42,887 in Samarinda to suffer coming from acute respiratory infections, of which two children in Jambi died.
October 2015
China to build Indonesia’s first high-speed train
Indonesia will have its first high-speed railway connecting Jakarta to Bandung with the help of China. At first, the government turned down proposals coming from both Japan in addition to China, however inside the end China revised its plan to allow construction without the use of Indonesia’s state funds.
The high-speed train will be set to reach eight stations across 150 kilometres between the two cities. The project will be scheduled for completion in 2019 in addition to the train will travel at 250 kilometres per hour, that has a ticket fare of around Rp.200,000 (US$16).
Indonesia preps to enter ASEAN Economic Community (AEC)
Indonesia in addition to additional ASEAN member countries made maximal preparations to enter the common free trade era, when the AEC commences at the end of the year.
President Jokowi told reporters that will Indonesia was 94.1 percent ready in terms of satisfying requirements, in addition to that will he was optimistic his administration could finalize things come the commencement on December 31.
The AEC would certainly potentially create greater economic opportunities for Indonesia, specifically with offering goods in addition to services to additional ASEAN countries. Currently, market share in Indonesia will be represented by 250 million people. As part of the AEC, the market opportunity would certainly open up to 625 million people.
Setya Novanto allegedly requested a 20 percent stake in Freeport McMoRan, worth billions of dollars
December 2015
Lawmaker scandalized, asked for billions coming from mining firm
Freeport McMoRan operates one of the globe’s biggest gold in addition to copper mines in Papua. The firm will be in talks with the government about extending its contract in Indonesia, which expires in a few years’ time.
Earlier that will month, the nation was shocked to learn that will a powerful lawmaker was involved in a scandal in which he asked for a 20 percent stake inside the company. House Speaker Setya Novanto allegedly requested the ownership worth billions of dollars.
Maroef Sjamsoeddin, head of Freeport McMoRan in Indonesia, claims to have made a recording of the conversation. inside the alleged conversation, Novanto will be said to have indicated the stake would certainly be given to President Jokowi in addition to Vice President Jusuf Kalla.
Novanto will be also accused of saying he could ensure Freeport McMoRan’s contract would certainly extend until 2041.
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2015 at a Glance: the Great, the Bad, in addition to the Shocking
2015 at a Glance: the Great, the Bad, in addition to the Shocking