Indonesia - The Rising Star of Asean

Indonesia ~ The Rising Star of Asean

Gross domestic product in Southeast Asia’s largest economy expanded 4.4 percent in the first quarter from a year earlier, compared with 0.4 percent in the Philippines and contractions of more than 6 percent in Singapore, Malaysia and Thailand.

Foreigners are plowing money into the nation’s stocks and bonds as the economy outperforms its regional peers on optimism President Susilo Bambang Yudhoyono will win re-election in July. The central bank cut borrowing costs on June 3 for a seventh straight month and Deputy Governor Hartadi Sarwono signaled room to reduce them again as inflation slowed to the least in 23 months. The rupiah is “still undervalued,” he said.

“The rupiah is still one of our picks because the Indonesian economy is fairly robust,” said Emmanuel Ng, an economist at Oversea-Chinese Banking Corp. in Singapore. “The way the political climate is evolving is positive from an offshore perspective. Inflation continues to come off and Bank Indonesia continues to keep the door open for rate cuts.”

Indonesia’s budget deficit may narrow to 1.3 percent of gross domestic product next year, Sri Mulyani said June 3. This year’s shortfall is estimated at 2.5 percent of GDP, the government has said. (Malaysia’s shortfall is at 8.5% of GDP).

How did Indonesia do it?

Indonesia has gone through radical political reform and is now the most democratic country in Asia. They have completely revamped the executive, judicial and legislative branches and are independent of each other. The Anti Corruption Agency is establish through an act of parliament and is made totally independent. They now even have direct Presidential appointment unlike in Malaysia where its still being handed down by umno or through appointment from one Prime Minister to another.

Unlike Malaysia, Indonesia has rectified all international treaty in respect of Human Rights and they have enacted basic laws to protect the rights of its people as seen through the enactment of Freedom of Information Act and the Freedom of Expression Act. Indonesia is today a nation of international standing and repute. (Sigh.. when can we see the day when we can say the same for our beloved country now being labeled a pariah).

Malaysia does not have the political infrastructure which is the structure of good laws, clear separation of powers of government and the respect of basic human rights instead we have bad and outdated laws that oppresses the people, dictatorial control and influence over all the branches of government.

Indonesia today does not have any sedition act, sodomy act, does not criminalize the printing and publication act, illegal assembly or gathering, detention without trial (isa) in short the government does not bully or oppress its own people and in fact have all the necessary laws to protect its people… Freedom of information!…Freedom of expression!

“Give Me Liberty Or Give Me Death” -Patrick Henry (1775)

Read Earlier Post on Indonesia HERE