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The President Post T H E
S P I R I T
O F
IDR 20.000
January 2015
I N D O N E S I A
www.thepresidentpost.com
NATIONAL
SPECIAL REPORT
TRAVEL
Solar Eclipse Draws More Attraction to Tourism Destinations
Arief Yahya’s Moves in Hunting 20 Million of Foreign Visitors
Tanjung Lesung, Paradise on The West Coast
- page A2
- page B2
page B6
ASEAN Economic Community Mounting Pressures Ahead BY ATMONO SURYO
ASEAN Current Position The international community recognizes that enormous changes have developed in the global economy. Altering the world economic landscape and outlook in a significant way. But with the many uncertainties popping up no one can predict in what direction the world will be heading in the years ahead. No one can also be certain what ASEAN’s economic position will be in the Asia Pacific region and in the larger global context. How the individual economies of the association will develop to bring jobs and prosperity to their people. Some earlier predictions suggest that if ASEAN is well managed the countries and the more than 600 million people in South East Asia can count on a bright future in the coming decades. But with mounting pressures still looming ahead. Judging on the positive side one will undoubtedly confirm that in addition to China and India ASEAN’s collective achievements during the past decades have been quite impressive. With the high economic growth
reaching around 5 to 6% and expanding GDPs. According to McKinsey in terms of GDP ASEAN has achieved to become the 7th largest economy in the world. With a GDP of 2.4 trillion USD (2013) - after the United States - China - Japan Germany - France and the United Kingdom. It is estimated that ASEAN may become the 4th largest economy by 2050. International organizations such as the World Bank, Asian Development Bank, OECD and a number of international banks are all rating ASEAN as one of the most dynamic and fastest-growing region in the world. In terms of business ASEAN with Indonesia in the lead has become a very attractive region. For an increasing number of developed and developing countries. It is also recognized by the international community that ASEAN is also beginning to function as a dynamic economic hub in the Asia Pacific region. Economic Integration Apart from the many shortcomings and failures ASEAN’s economic track record during
ASEAN Trade with Selected Trade Partner, 2011
ASEAN TRADE 2011
Country
Value In Million USD
Intra ASEAN
598,242.24
ANZ
67,711.14
Canada
10,771.15
China
280,405.55
EU-27
234,776.15
India
68,428.78
Japan
273,347.07
Korea, Republic of
124,470.90
Pakistan
6,767.45
Russia
13,967.90
USA
198,785.92
Others
510,918.05
Trade
2,388,592.28
Others 21.4%
USA 8.3%
P
The government is currently recounting the fuel price to adjust to the change in world oil price. “In light of the world oil price decrease, we are currently exploring options,” said President Widodo. He also revealed that the Coordinating Minister of Economics Sofyan Djalil had been formulating a policy regarding national crude oil price revision. The government has three options in regards to the decrease of global oil price. However, President Widodo refused to discuss said three options further. “We are carrying in mind the best interests of the people,” said President Widodo. On November 17 2014, President Widodo announced an increase in fuel price from IDR 6,500 to IDR 8,500, and subsidised solar from IDR 5,500 to IDR 7,500. President Widodo promised to announce
the price revision before New Year’s Eve. For the first time in five years, global oil price went down, and it has been predicted that the price will stay down until the first six months of 2015. At The New York Mercantile Exchange, the oil flow for January 2015 has gone down by 4.2 per cent at US$ 63.05 per barrel. Brent crude oil for January at ICE Exchange Futures London went down 4.2 per cent at US$ 66.19 per barrel. This this the lowest point in European oil price since September 29 2005. Some analysts assume that American oil mining and the current economic situation in Japan are the factors that affect the trade of oil as of Monday, December 8 2014.
ANZ 2.8%
Russia 0.6% Pakistan 0.3% Korea, Republic of 5.2%
China 11.7% Japan 11.4%
two decades is a positive indicator of its importance as a regional organization. International observers firmly suggest that ASEAN has the potential to surge ahead to become another powerhouse in East Asia alongside China, India, Japan and South Korea. It is understandable, however, that aside from the formal
Canada 0.5%
EU-27 9.8%
India 2.9%
Source: ASEANStats Database as of September 2012 for FDI ASEANStats Database as of November 2012 for Trade circles not much is known by the general public about ASEAN as a regional organization. Including in particular Indonesia as the largest country and one of the key founders. To be aware of ASEAN’s visions and goals, their policies and programs but also their many achievements and shortcomings. It would not be the right
Crude Oil Price Goes Down, Subsidised Fuel Price Revised President Joko Widodo stated on December 12 2014 that the government would revise the price of subsidised fuel following the decrease of world oil price.
Intra ASEAN 25.0%
way to look only at the shortcomings aspects.
AEC 2015. With the main aim to become a single market and an important production base.
Complex process It must be noted that after going through the traditional process of economic and trade cooperation ASEAN is presently going through the difficult and complex process of regional integration. Which includes in particular the establishment of
In the area of trade expansion ASEAN is presently already rated as a very large expanding market; centered in Indonesia as the largest country. But so far not much progress has been achieved to develop South East Asia as a production base. ...continued on pg. A3
Missing Air Asia QZ8051: Quotes “I have ordered Komite Nasional Keselamatan Transportasi (National Committee for Transportation Safety (KNKT)) to work as efficiently as possible to find out the cause of the (plane) crash so KNKT can work on what needs to be improved in air travel safety. I am sure they are more than capable to do it.”
“In light of the world oil price decrease, we are currently exploring options,”
-Joko Widodo, President of Indonesia
-Joko Widodo, President of Indonesia
“We highly appreciate the hard work and strong will of everyone involved in the search for Air Asia OZ 8501.” “We’ve deployed 30 ships and ships and we also have foreign aid. We will do our maximum best.” -Jusuf Kalla, Vice President of Indonesia
“We will keep praying and hoping for the best for the families and friends of QZ 8501 crash victims.” Source: antaranews.com
“We will do our best to help the families of QZ 8501 passengers and cabin crew. They are our main concern right now.” -Tony Fernandes, Air Asia CEO
Revision of Japan’s gross domestic products and sentiments regarding the slow economic growth in China and Europe also affect the global market,” said American energy analyst Tim Evans, as quoted by stock market website MarketWatch.com on December 9 2014.
“So far we have a lot of help from other countries such as three ships from Malaysia and three ships from Singapore in addition to our own Tentara Nasional Indonesia (Indonesian Military Forces (TNI)) ships and planes. Our TNI team is already on the move. We will update you with details as we go along.” -Ignasius Jonan, Minister of Transportation
Source: energitoday.com