{"id":23016,"date":"2015-10-23T06:00:33","date_gmt":"2015-10-22T19:00:33","guid":{"rendered":"http:\/\/www.aspistrategist.ru\/?p=23016"},"modified":"2015-10-22T16:55:09","modified_gmt":"2015-10-22T05:55:09","slug":"getting-down-to-business-jokowi-in-the-us","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/getting-down-to-business-jokowi-in-the-us\/","title":{"rendered":"Getting down to business: Jokowi in the US"},"content":{"rendered":"

\"Silicon<\/a><\/p>\n

It\u2019s been 10 months in the planning, but when Indonesian President Joko Widodo flies to the United States next week the agenda for his 26 October meeting with President Barack Obama will be considerably different from when the country\u2019s previous leader, Susilo Bambang Yudhoyono, visited the White House five years ago.<\/p>\n

The two leaders may well touch on the South China Sea and other security issues, but Widodo will be all business\u2014literally. Far from engaging Obama in matters of global, environmental or regional concern, as Yudhoyono liked to do, Widodo will concentrate on ways the US can help rejuvenate Indonesia\u2019s flagging economy.<\/p>\n

In fact, foreign affairs adviser Rizal Sukma says he wants to start where he left off when he met the US president for the first time at the Asia Pacific Economic Co-operation (APEC) Summit in Beijing last November, surprisingly him with his single-minded focus on the domestic economy.<\/p>\n

Enhancing the US\u2013Indonesia Comprehensive Partnership, which Yudhoyono and Obama signed in 2010, will be pursued by Widodo and his team of seven ministers, given its emphasis on science and technology, and education\u2014two areas he sees as key to future growth.<\/p>\n

Widodo particularly wants to explore cooperation in information technology and e-commerce and how US and its major corporations can help Indonesia grow its creative economy, another Yudhoyono initiative, which is expected to contribute to 12% of Indonesia\u2019s total export value this year.<\/p>\n

The Americans, for their part, will be looking to see whether Widodo has positive things to say about\u00a0the recently-signed Trans-Pacific Partnership trade agreement (TPP), although Indonesia\u2019s current priority is a free trade deal with the European Community which his advisers say may provide a shorter route to the TPP.<\/p>\n

Widodo is well aware trade liberalisation won\u2019t win him any friends at home, with nationalists and self-interest groups exploiting public apprehension over the ASEAN Economic Community, which comes into force at the end of the year. Rather than being perceived as an opportunity, it\u2019s regarded more as a threat because of Indonesia\u2019s lack of competitiveness.<\/p>\n

The president will sign at least US$17.9 billion in new deals at a US Chamber of Commerce investment summit in Washington, swelling to US$36 billion if there\u2019s a last-minute inclusion of Jakarta\u2019s recent agreement in principle to extend the contract of US mining giant Freeport McMoRan Copper & Gold.<\/p>\n

The company plans to invest US$18 billion on building a new smelter and transforming its Grasberg mine in Papua from an open pit into the world\u2019s biggest underground operation. But foot-dragging on the extension had gone on for so long a breakthrough had become almost a pre-requisite for Widodo\u2019s US visit.<\/p>\n

The president must now amend a regulation under which the Government is only bound to begin contract-renewal negotiations two years before the expiry date\u2014something Freeport can hardly live with and which has led it to delaying the mine conversion until 2018.<\/p>\n

US companies contributed $65 billion in new investment in Indonesia between 2004 and 2013, with potential for an additional $61 billion between now and the end of Widodo\u2019s term in 2019. But the challenges are immense, ranging from regulatory uncertainty to poor infrastructure and a shortage of skilled labour.<\/p>\n

During his 26\u201328 October visit, the Indonesian president will sit down with Freeport CEO Richard Adkerson and senior executives of four or five other multinationals, before flying to California\u2019s Silicon Valley for important meetings the Indonesians arranged with Microsoft, Apple and Google.<\/p>\n

In a determined effort to revitalise the economy, aides say Widodo is dead-serious about re-focusing the economy away from natural resources and back on to manufacturing, in the same way as president Suharto\u2019s New Order regime did at the end of the oil boom in the early 1980s with textiles, footwear and consumer electronics.<\/p>\n

The president now understands that to attract the foreign investment needed to achieve that goal and also help fund a major infrastructure-building programme, he has to dispense with much of the economic nationalism policy he inherited\u2014and initially embraced\u2014from the Yudhoyono Government.<\/p>\n

The Government has only recently issued its fourth package of stimulus measures and although they are considered so far to address the low-hanging fruit, policymakers have pledged to liberalise the creative-industry, e-commerce and health sectors to attract more outside investors.<\/p>\n

Ministers and close aides say the president has every intention of continuing along the path of deregulation, not only for the next five or six months as US Ambassador Robert Blake suggested at a recent briefing, but until he\u2019s satisfied all the impediments to an improved business climate are gone.<\/p>\n

Officials say the normally-reserved Widodo is genuinely \u2018enraged\u2019 at the slow progress in clearing out what one calls the \u2018thicket of regulations\u2019 standing in the way, including a strange stipulation that overseas-based executives have to obtain temporary work permits to attend meetings in Indonesia.<\/p>\n

In finally getting back on the same page as the president, the Manpower Ministry recently told a business gathering it would be retracting that regulation and also amending other contradictory provisions that have imposed limits on work permits and ex-patriot staffing levels.<\/p>\n

So far, Widodo has found it to be three steps forward and one step back with ministries piling on the confusion by sending different signals and mixed messages. \u2018This is not a flash in a pan thing,\u2019 says one official. \u2018He wants a rationalisation of policies and he wants deregulation in the field.\u2019<\/p>\n

Bringing in new chief economic minister Darmin Nasution is part of an effort to impose policy discipline on Indonesia\u2019s notoriously uncooperative bureaucracy. That and the extent of deregulation is likely to have a far more far-reaching impact than anything he achieves on his four nights in the US.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s been 10 months in the planning, but when Indonesian President Joko Widodo flies to the United States next week the agenda for his 26 October meeting with President Barack Obama will be considerably different …<\/p>\n","protected":false},"author":335,"featured_media":23017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[1056,1513,8,365,31],"class_list":["post-23016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bilateral-relations","tag-business","tag-indonesia","tag-trade","tag-united-states"],"acf":[],"yoast_head":"\nGetting down to business: Jokowi in the US | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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