Economic Prospects

Jul 27th, 2007, in Business & Economy, by

Lee Kuan Yew's thoughts on Indonesian economic prospects.

Visiting Jakarta the former leader of Singapore Lee Kuan Yew today discussed the Indonesian economy with vice president Jusuf Kalla. Yew said that economic prospects in the country were good, looking at the next few years, and he agreed with the government's forecasts of 7% growth in 2007 and 9% by 2008.

I'm optimistic Indonesia can reach those targets, because economic fundamentals are good, unemployment is declining, and labour laws are improving.

Provided that investment rules and laws were clear and firm, and that labour laws continued to be amended he said Indonesia could catch up to Thailand and Vietnam in terms of those countries' growth records since 1997. tempo okezone

Lee Kuan Yew
Lee Kuan Yew.

He said investors were most concerned that agreements, once concluded, not be suddenly changed by the government.

[If investment rules become clearer and firmer] American and Japanese investors will return, so will investors from other countries.

Indonesia's key strength was in mining, he said.

Lee also praised the economic good sense of Jusuf Kalla, saying the vice-president knew what was what where the economy was concerned, however he was only the deputy leader of the country. kompas

One problem that Indonesia faced, he said, was that there were too many political parties, making it hard for the parliament and the executive to agree on anything, and that this slowed economic growth. tempo


21 Comments on “Economic Prospects”

  1. avatar Peter says:

    Hehe good old Lee Kuan Yew advising that there are “too many political parties”. Indonesia would be wise to heed most of his economic advice. What a singular personality.

  2. avatar Arema says:

    The best ASEAN leader of all time returns! I agree to the points he made.

    One problem that Indonesia faced, he said, was that there were too many political parties, making it hard for the parliament and the executive to agree on anything, and that this slowed economic growth.

    I have mentioned this before, in the democracy thread if I’m not mistaken. Rather than too many political parties, I think the problem lies in our election system and people mentality. The elected president / vice-president does not have full authority in running the country because they have to answer DPR/MPR, whose population dominated by oppositions. With each side have their own selfish political agenda, backstabbing is a norm, and it is a never-ending cycle. Other election winner become president, the deposed did the same thing.

    Our people need to be more politically mature, and those selected to become “people’s representative” should start behave, think, and act like one. Actually a lot of political parties may not be a problem IF the election system changed so that the winner will have more authority in ruling the country, and the politicians put Indonesia’s best interests above their own selfish interest.

    But that’s a big IF there… Without those “seemingly-impossible-to-achieve” ideal conditions, LKY is right. More parties = more chaos. Too many parties will simply put a lot of voters losing interest in learning about what each parties’ objectives and just asal coblos based on feelings. Vote without thinking and then demonstrate when the government fail, very smart.

    Back to topic, I hope this bullish trend of economic growth in our country continues. It is about time Indonesia bounced back from the debilitating monetary crisis in 1998.

  3. avatar Aluang Anak Bayang says:

    shoosh, the only hope for Indonesia to survive and thrive into the next decades was repents and applying shariat.

  4. avatar Enigmatic says:

    shoosh, the only hope for Indonesia to survive and thrive into the next decades was repents and applying shariat.

    I do hope you’re being sarcastic.

  5. avatar Raden says:

    How can we progress except in applying shariat laws like Aluang said? Even Saudi Arabia our big Muslim brother do not recognize Garuda airways? The only thing Indonesia to progress, leverage on Saudi’s decision on banning Garuda in order to justify (use our Muslim militant’s attitude) reciprocal action against Saudi which can dent Saudi’s economy thus increasing our $$ revenue. MOVE KAABAH IN ACEH, so every world-wide Muslims must pay annual pilgrim in Aceh, Indonesia, why not? We are the biggest Muslim country, yes we can win voting like American Idol’s SMS, this is the only way I see the positive side of having the largest Muslim population. Brothers, why do you wait? Let’s execute it, do it!

  6. avatar Enigmatic says:

    How can we progress except in applying shariat laws like Aluang said? Even Saudi Arabia our big Muslim brother do not recognize Garuda airways? The only thing Indonesia to progress, leverage on Saudi’s decision on banning Garuda in order to justify (use our Muslim militant’s attitude) reciprocal action against Saudi which can dent Saudi’s economy thus increasing our $$ revenue. MOVE KAABAH IN ACEH, so every world-wide Muslims must pay annual pilgrim in Aceh, Indonesia, why not? We are the biggest Muslim country, yes we can win voting like American Idol’s SMS, this is the only way I see the positive side of having the largest Muslim population. Brothers, why do you wait? Let’s execute it, do it!

    I am very afraid of what you are saying.

    Are you saying that we should apply shariat like Saudi Arabia?

    Let’s see:

    Here’s what Saudi Arabia has to offer:

    Courtesy of Wikipedia:

    including abuse of prisoners and incommunicado detention; prohibitions or severe restrictions on the freedoms of speech, press, peaceful assembly and association, and religion; denial of the right of citizens to change their government; systematic discrimination against women and ethnic and religious minorities; and suppression of workers’ rights. Foreigners can be imprisoned without trial for practising their religion in public or private and employment preferences are biased. Many prominent members of society have gotten away scot-free for crimes that deserve punishment helped by a judicial system having no transparency.

    You sure that’s what YOU want?

  7. avatar Tomaculum says:

    Aluang, even a shariat wouldn’t able to unify Indonesia, remember the many islam sects and groups.
    Indonesia needs a powerful dictator to pacify it, then the investors will come again.

  8. avatar Putu Alberto Lee says:

    Why do I always think that this “pilgrimage” thing is a big stinky scam?

    Geesh, what a waste of money and resources, given away to a country like Saudi Arabia, whose contribution to the world (particularly countries like Indonesia) are terrorism and backward thinking.

  9. avatar Raden says:

    Enigmatic, I said to move Kaabah from Saudi to Aceh, not to Indonesia. Aceh always claim to have special zone, as the second destination of serambi Mekah. Then let’s do it, we solve many problems here, the Acehnese will be very happy and Indonesia will get the $$ influx tourism revenue. However, the point I want to make, ‘ this is the only way I can see the benefit of being as the largest Muslim population in the world ‘ in the context of “economic prospect”, otherwise I see no value of being the largest Muslim country

  10. avatar Enigmatic says:

    oh ok…

    Why do I always think that this “pilgrimage” thing is a big stinky scam?

    Geesh, what a waste of money and resources, given away to a country like Saudi Arabia, whose contribution to the world (particularly countries like Indonesia) are terrorism and backward thinking.

    You forgot that they defeated our national football team too…

    Whatever.

  11. avatar Raden says:

    Huh, even Iraq team can beat South Korea team with penalty, amazing to see the quality of Iraq football team, they are supposed to have ethnics war back in their home country. Did they have enough practice? Did they have flat green fields?

  12. avatar Shiva says:

    Raden

    Huh, even Iraq team can beat South Korea team with penalty, amazing to see the quality of Iraq football team, they are supposed to have ethnics war back in their home country. Did they hv enough practice? Did they have flat green fields?

    Iraq’s footballing ‘Lions of Mesopotamia’ survive death threats and violence to make the cup final.

  13. avatar Enigmatic says:

    Ok I guess I never made my point clear.

    What I was trying to say is that many countries contribute to terrorism worldwide and to Indonesia. Don’t single out Saudi Arabia.

  14. avatar Falcon says:

    Ah Grand Pa Lee preaching again. Grand Pa we want you to preach how Singapore hoars Indonesia corruptors and make Singapore not a corruptor whore.

  15. avatar Falcon says:

    Again, Grand Pa Lee is correct, “Indonesia’s key strength was mining” lets carved the beaches for the sand, flattened the hills for building materials and send all these mining products to Singapore, so the Singapore grows larger and later claimed Indonesian waters so it can catch more fish, drill oil and gas, and practice Army combatants. Indonesians love you Grand Pa Lee.

  16. avatar KSJ says:

    Say NO to shariah law implementation in Indonesia. Prosperous middle eastern countries are thankful to the oil they have below their soil that makes them rich, not the shariah law. Look at poor Middle-eastern countries like Morrocco, Syria, or Iran, shariah law doesn’t save them from poverty. Look at Afghanistan during the Taliban era or Pakistan. Do you want Indonesia to look like them? I bet you don’t.

  17. avatar Sputjam says:

    Only way for business to thrive is to minimise regulations. No labour laws, no currency laws, no limit on foreign shareholdings etc.
    But too much emphasis on capitalism will bring great volatility, and this is not good for the community.

    During the time of the british, Singapore was already an established trading centre.
    The only university in Malaya was in Singapore(mahathir studied there). All trains from Malaya stops in Singapore. Singapore has the only international port and airport to serve Malaya. All rubber/tin whatever that come from malaya, was exported from Singapore, and some from penang. Singapore already had refineries and was one of the busiest port during the british.
    Singapore was not a swamp PAP and LKY wants all of you to believe.

    After the british left, Singapore traders made money by smuggling, due to punitive luxury import taxes imposed by the then independent Indonesia and malaysia.

    During the time of suharto, unscrupulous businessmen from Indonesia smuggled subsidised refined oil and sold to bunker companies in Singapore. Those money never came back, but Indonesian taxpayers suffered as they had to pay the difference between the selling price and the subsidise prices. The subsidised refined oil actually helped the rich as they are the owners of cars and transport, and eleviated the poor, who could have got that money instead in the form of educational aid or grant for communal upgrade.
    In fact, money from much of Indonesia resources never came back but are parked in Singapore. So Singapore do not require any resource to be rich. Those resources include timber, coal and possibly sand which were underdeclared when exported.
    Now you know why Singapore evolved into a financial centre. presently, it is trying to attract unscrupulous businessmen from china who are uneasy about parking their money in hong kong, which is in chinese territory.
    The idea of a casino is more about money laundering than gambling tourist.

    LKY hates dissent. hence anyone who challenge him will be put away under ISA or made bankrupt, if they decide to stay put.
    Paying ministers and civil servants good money is how he corrupts Singapore. Because they are so highly paid, nobody will dare question LKY’s policies.
    Cronyism exist in Singapore. Tat Lee bank belonged to his brother. It was rescued after 1997 financial crisis by merging with Keppel finance and after that both were rescued by merging with DBS. LKY’s son is current PM. His other son was the CEO of singtel, until he was discovered to be having an affair with a women in australia. He resigned, and is now living in australia, I suppose with the new girl. Funny enough, the women is from the company singtel bought at a high value called OPTUS.

    If you regard LKY highly, then think about the fate of the current PM’s first wife, who was a doctor from Malaysia, who committed suicide, maybe due to the fact that their two children were albino and the other autistic. But I think it was more due to disappointed father-in-law who could not obtain a perfect grandchild who pressured her into the ultimate oblivion.

    LKy’s father, I believe was from semarang. During WWII LKY was a translator for the japanese, whilst his chinese counterparts were fighting against them. The most successful anti japanese army was the MPAJA (Malaya peoples anti japanese army) which were mostly ethnic chinese. They were fighting the japanese because Japan conquered China and the fighting in Malaya was an extension of that war. After the war, the MPAJA transformed and became the CPM (communist party of malay) following the footsteps of China’s Mao Ze Dong. Anyone with any socialist inclination was jailed by LKY under ISA (intenal security act-no need for legal proceedings). The biggest challenge to PAP in the first election, incidentally was Barisan sosialis. The leader of that party have just been freed after many decades in confinement.

    Temasek is now controlled by PM’s second wife, LKY’s daughter in law. In fact the whole of Singapore are controlled by one family. Nobody dissent because they are paid to be silent.

    The two child policy of LKY rebounded on him. Singapore’s populations is now shrinking. In order to maintain the standard of living, the country now welcomes any rich people from anywhere to reside as PR or citizen. That of course includes many Indonesians. These rich indivuduals will bring countless millions into the island state, i.e. making money without having to work is Singapore’s policy from the start.

    LKy’s wife has a legal frim which controls the S&P agreement to all HDB flats. One of her junior partners was her ex-daugther-in-law (not sure divorce already or not) who married her second son, who was caught with an affair with a buxom australian from Optus. (Now we know why singtel paid so much for that australian telco).

    In the 70’s most Singaporean can speak a sprinkling of bahasa melayu. Presently, the aid workers they sent to aceh in the tsunami aftermath couldn’t communicate with their Indonesian counterpart.

    Singapore is rich only because the natives of Nusanatara do not understand business philosophy and how the world revolves. As an example, people of timor who welcomed the australian army, only to be told that the gas under the timor sea now belongs to australia.

    The natives of nusantara are so comfortable with their lives in the islands that they could not be bothered to sail just a little bit more and establish in australia. Because of this attitude towards life, Singapore has no competitor in the vicinity.

  18. avatar Ereka says:

    Sputjam, I laugh when i read your post. You are contradicting yourself by saying it is vital to minimise this and that in order for business to thrive and yet claim emphasizing capitalism is not desirable. So what do you want? The world is one big capitalistic market. In this urban jungle, instead of focusing on improvements and moving forward, stories were abundantly produced and somehow justify others for the plight of their own country. Before you wish to refute, I ask you for evidence. Talk is cheap. And it’s common political strategy to blame others to divert the citizens’ to their own problem. If the people actually believe in these stories, I do not see how Indonesia can progress. Yes, nepotism seems to exist in the Lee family. Most singaporeans believe in that. But so does it in many parts of the world. Even the Bush administration can be considered one. But on one hand, the seemingly overpaid and over-controlling government is at least delivering, at least on the economic front. Do you think singaporeans would approve a lingering dynasty if it has not been performing? Your own nationalism is blinding you from seeing the wider picture. And in continuing to do so, you will always justify using stories.

  19. avatar DoOs says:

    The best ASEAN leader of all time returns! I agree to the points he made.

    The best ASEAN leader that leads a cowardice nation lol… Managing a small market is easy, can he manage a huge market? I don’t think so… the happy index shows singaporeans have low standards of living anyways, by means they are not happy.

  20. avatar Enigmatic says:

    DoOs Says:

    August 16th, 2007 at 8:49 pm
    The best ASEAN leader of all time returns! I agree to the points he made.

    The best ASEAN leader that leads a cowardice nation lol”¦ Managing a small market is easy, can he manage a huge market? I don’t think so”¦ the happy index shows singaporeans have low standards of living anyways, by means they are not happy.

    Lowest standards of living MY ARSE!!

    At least Singapore doesnt have chauvanistic, religiously extremist bigots like some people that supports burning of books

    Ereka Says:

    August 11th, 2007 at 12:00 am
    The world is one big capitalistic market. In this urban jungle, instead of focusing on improvements and moving forward, stories were abundantly produced and somehow justify others for the plight of their own country. Before you wish to refute, I ask you for evidence. Talk is cheap. And it’s common political strategy to blame others to divert the citizens’ to their own problem. If the people actually believe in these stories, I do not see how Indonesia can progress. Yes, nepotism seems to exist in the Lee family. Most singaporeans believe in that. But so does it in many parts of the world. Even the Bush administration can be considered one. But on one hand, the seemingly overpaid and over-controlling government is at least delivering, at least on the economic front. Do you think singaporeans would approve a lingering dynasty if it has not been performing? Your own nationalism is blinding you from seeing the wider picture. And in continuing to do so, you will always justify using stories.

    Well said.

  21. avatar Dragonwall says:

    Again, Grand Pa Lee is correct, “Indonesia’s key strength was mining” lets carved the beaches for the sand, flattened the hills for building materials and send all these mining products to Singapore, so the Singapore grows larger and later claimed Indonesian waters so it can catch more fish, drill oil and gas, and practice Army combatants. Indonesians love you Grand Pa Lee.

    I suppose these were meant to be sacarstic! Singapore don’t need these mining products. As for reclaimation it is Singapore’s sovereign right and have not breach into Indonesia’s sovereign territority. Catching fish? drill oil and gas? from where?
    Perhaps you were still lacking the knowledge that Singapore had contracted with many countries for their military trainings. They don’t even need Indonesia at all and yet they could train their army. They have their training grounds in British territories. And an air training base in Texas! In Taiwan, Vietnam, Brunei, NZ etc etc. Be grown up. perhaps you dislike the way he commented!

    No labour laws, no currency laws, no limit on foreign shareholdings etc.

    No labor law? So that demands could be sky high! Who will invest in Indonesia? It is because of the cheap labor that these investors find that attractive in their cost for productions, otherwise they could lick Mexico, Brazil etc why Indonesia!

    No currency laws? Come on. This sounds a little absurd. When there is no currency law, counterfeit currency will flourish in the Indonesian market making the rupiahs worthless in the eyes of International Community. Are you aware how many countries accepts Indonesian rupiahs for exchange rates? Not many. Try and have it changes into USD in the US or Canada, perhaps HK and Macao or China? No one will take them. Not forgetting money laundering will take this country as a haven.
    As for not limit to share holdings that is okay.

    Now you know why Singapore evolved into a financial centre. presently, it is trying to attract unscrupulous businessmen from china who are uneasy about parking their money in hong kong, which is in chinese territory.
    The idea of a casino is more about money laundering than gambling tourist.

    I disagree with this. Singapore has never, unless it is a legitimate money transfer, will not condon money laundering. Singapore had not gain any reputation for being a centre for money laundering.
    Did you company that to Macao? So Macao also encourage money laundering I suppose! With American biggies investing billions?
    Singapore legalize gambling to prevent an vice activities like underground casino, illegal bookies on race horses, and lottery.
    If you compare the time when Jakarta had their casino, how was Indonesia doing at that time of Ali Sadikin?

    Paying ministers and civil servants good money is how he corrupts Singapore. Because they are so highly paid, nobody will dare question LKY’s policies.

    I think this is gross misconception, not that I am trying to defend someone. Let have it in logical thinking.
    The reason Singapore government agrees to pay their ministers with such a high salary should be seen in a more broader angle.
    1. To prevent them from accepting bribe or being corrupt.
    2. Raise the standards of professional politician and decision makers.
    3. They will serve the country full heartedly with undivided attention and avoiding
    themselves being involve in business.
    4. The political experience they possess besides academic qualifications.
    The lists could be just endless.

    Cronyism exist in Singapore. Tat Lee bank belonged to his brother. It was rescued after 1997 financial crisis by merging with Keppel finance and after that both were rescued by merging with DBS. LKY’s son is current PM. His other son was the CEO of singtel, until he was discovered to be having an affair with a women in australia. He resigned, and is now living in australia, I suppose with the new girl. Funny enough, the women is from the company singtel bought at a high value called OPTUS.

    Right to a certain extent cronyism exist. Yes it does exist in any country with a difference. If your crony is incompetent will you defend him/her? Obviously you will choose the brightest to be your crony unlike those in Indonesia right? I mean professionally. Tat Lee could or may be or is own by whoever the person is, is immaterial. The important thing is that Singapore Finance Ministry has the obligation to protect the interest of depositors in whichever bank in Sngapore. And they can’t just get any dick tom or harry to merge. It has to be with a government bank. Not forgetting there could be a reason for that because Tat Lee had a merging interest with Buana Tat Lee.
    Singtel bought OPTUS with a premium is the business norm of acquisitions. Who will sell their company to you at a low price. Maybe Lapindo Brantas will to Lyte at USD2.00 and after all even Lyte are owned by the same crony. Whereas Singtel isn’t. For his involvement in his private life he paid a price for that for being itchy. You are implying that he maybe paying a high price so that the funds paid for those shares could then be siphoned off later on through his relationship with the woman?
    Put it nin more logical thinking OK.

    Those migrant didn’t make up much of the population at all. What Singapore wants is to put herself beyond the 21st century like acquiring more people with hgih academic qualifications. The rich doesn’t mean a thing. How much do you think the Indonesians could have parked their money in Singapore? Billions? It is nothing. Trillions perhaps? Not possible. Indonesia does not have that Trillion to put into Singapore. The family planning encourages academians to have more children so that when these siblings grow up their intelligence could be put into good use for Singapore.

    Singapore has no competitor in the vicinity.

    Can you name one that could come close! Not because of the so call Nusantara that she prosper. It is from the foundations that you build from thirty something years ago unshaken.

    Barisan Socialis or Jayaretnam it doesn’t matter. They were trying to prove they could make Singapore a better place. Any credentials. Like Indonesia. Soeharto was doing very well and there was this coup d’etat. And what happened. This is a very good example and a good lesson that politics are dirty and promises are made to be broken. So far the promise to Singapore were realize many times over. As for his confinement the ISA called it preventive detention so that this guy will not go around monkeying in Singapore. But his life in confinement was well taken care of. He was not place in a cell but house arrest.

    cowardice nation

    How cowardice? What has a big nation or small nation got to do with management?
    If you have the systems that works it works for nation, company big or small.

    happy index shows singaporeans have low standards of living anyways

    Singaporean have one of the highest income 0per capita in the world and you are saying the standards are low? Where is your economic brain DS.

    One should comment base on factual without prejudice or dissent. Some Indonesians may have gone into hiding in Singapore does not necessarily mean the government condone their activities. Singapore goes by the policy. If they did not commit a crime they can’t be prosecuted. Singapore signed an extradition treaty with Indonesia. Prove these people wrong and Singapore will Hve them extradited no discount.

    Have you seen the number of drug traffickers being dealt with in Singapore? Of course when they receive info from the interpol or Asianpol counterparts they will have t justify their action.

    The rest is just history.

Comment on “Economic Prospects”.

RSS
RSS feed
Email

Copyright Indonesia Matters 2006-18
Privacy Policy | Terms of Use | Contact