JAKARTA — Vehicle sales in Southeast Asia are set to outpace all other regions of the world during 2017, according to industry research, highlighting surging economic expansion in some parts of the region. But the growing number of new cars and trucks in urban centers is likely to worsen commerce-stifling traffic jams in major cities such as Bangkok, Jakarta and Manila — adding urgency to much needed transport infrastructure upgrades throughout much of the region. BMI Research — part of Fitch Group, a financial information company — has forecast that total vehicle sales in the Association of Southeast Asian Nations will grow 8.1% in 2017, a marked increase in the combined 3.1% car sales growth the previous year across the 10 ASEAN countries, and more than double the sales growth rate of 3.7% projected for Asia as a whole in 2017. “Looking at passenger cars specifically, we expect Cambodia, the Philippines and Vietnam to be the best performing autos markets in the ASEAN region in 2017 with forecast growth of 20.4%, 19.2% and 18.0% in passenger car sales respectively,” BMI said in a recent report on the sector, citing “solid economic growth, strong private consumption and tax reform” as drivers of the car sales spike.
JAKARTA — During a visit to Jakarta on April 21, U.S. Vice President Mike Pence diluted some of the anti-trade rhetoric espoused by his recently-elected boss, President Donald Trump, saying that his country and Indonesia “can and will do more to expand commerce.” “We seek trade with Indonesia that is free and fair,” Pence said, adding that “we seek to create a win-win trading relationship for both of our nations and all of our people.” His comments mark a change in tone from the zero-sum views on trade coming from the White House under President Trump, rhetoric that prompted Washington to compile a list of 16 countries — including Indonesia — that have trade deficits with the U.S. Pence, who was on the second day of a visit to Indonesia after stopovers in South Korea and Japan and before heading on to Australia, announced that American companies, including ExxonMobil, General Electric and Lockheed Martin, would sign “11 major deals worth more than $10 billion” in Indonesia.
JAKARTA — In a campaign laced with religious and ethnic tensions, the minority Christian governor of Indonesia’s sprawling capital was unseated by a former education minister backed by conservative Islamists, unofficial results showed Wednesday. With nearly all the votes counted, Indonesian polling companies said Anies Baswedan won around 60% of the vote in a runoff election to lead the city of 10 million people, soundly defeating incumbent Basuki Tjahaja Purnama, a Christian of Chinese descent. The bitter campaign evolved into a test of ethnic and religious tolerance in the world’s most populous Muslim nation, long seen as a bastion of moderate Islam. Purnama, better known as “Ahok,” is facing blasphemy charges over remarks that allegedly insulted Islam’s holy book, the Koran. Hundreds of thousands of Islamist demonstrators took to the streets during the campaign, demanding that Purnama be jailed.
JAKARTA — Indonesia and Malaysia, which produce more than 80% of the world’s palm oil, are resisting proposals by European parliamentarians that could limit their access to the second biggest palm oil market after India. Government ministers from Malaysia and Indonesia, along with some regional palm oil producers, met in Jakarta on April 11 to plan a response to a resolution approved on April 4 by European parliament members concerning “palm oil and deforestation.” The parliamentarians requested the EU to “introduce a single certification scheme for palm oil entering the EU market and phase out the use of vegetable oils that drive deforestation by 2020.” They hope for an EU-wide ban on biodiesel made from palm oil by 2020, claiming that the expansion of palm oil plantations, mostly in Southeast Asia, is causing “massive forest fires, the drying up of rivers, soil erosion, peatland drainage, the pollution of waterways and overall loss of biodiversity.” Indonesia’s Environment and Forestry Minister Siti Nurbaya Bakar called the EU proposals an “insult,” while the foreign ministry accused the EU of “protectionism” and of ignoring the rights of millions of Indonesian farmers whose main source of income is from small oil palm plots.
TANJUNG GUSTO — Coming from all over Indonesia, vividly-garbed traditional dancers yelled ‘horas’, which means hello in the Batak language of north Sumatra. But the pageantry could not mask their disappointment at being snubbed by the country’s president. Hundreds of Indonesia’s tribal leaders had traveled to Tanjung Gusto, a small village on Sumatra, the biggest of Indonesia’s 17,000 islands. They arrived with high expectations that the government was about to grant at least some of their demands for control of what they claim as their ancestral lands.
JAKARTA — Malaysia’s environment minister is sure that 2017 will not see a repeat of the choking, eye-watering smog that covered parts of his country, as well as Singapore and areas in Indonesia, for around two months in 2015. “We are very likely to be haze-free this year. Even if it comes, it will not be as serious as before,” said Wan Junaidi Tuanku Jaafar, Minister for Natural Resources and Environment, on March 2. Mostly caused by the burning of peatland and forests to clear land for plantations in Indonesia, Southeast Asia’s haze has for three decades been a near-annual blight that makes air in Kuala Lumpur and Singapore, two of Asia’s most dynamic cities, almost unbreathable and in turn, diminishes economic output. Prolonged bouts of the haze, such as in 1997 and in 2015, caused diplomatic ructions as Singapore railed against neighboring Indonesia over the impact of the pollution on its citizens and their livelihoods. But a new Indonesian government-backed alliance of farmers, businesses, environmentalists and concerned citizens aims to prevent more debilitating blazes in southern Kalimantan and western Sumatra, home to much of Indonesia’s lucrative palm oil and pulpwood sectors. “The Indonesian government is very serious on tackling the forest fires,” said Prabianto Wibowo, assistant deputy minister for forestry at Indonesia’s economic co-ordination ministry, speaking at the Responsible Business Forum in Jakarta on March 15.
JAKARTA — Two neighbors with a fractious history sought to put recent disputes behind them as Indonesian President Joko Widodo and Australian Prime Minister Malcolm Turnbull agreed at the weekend to restore military cooperation and reduce restrictions on some exports ahead of a possible free trade deal later this year. “Great result for Australian farmers. It will now be easier to export more sugar and beef to Indonesia,” Turnbull tweeted on Sunday, referring to Indonesia’s agreement to reduce tariffs on Australian sugar to 5% and allow more live cattle exports from Australia to the country of 250 million people. Widodo’s Feb. 25-26 visit to Sydney was his second trip to Australia since he took office in 2014, and the first since he personally showed Turnbull around Jakarta in November 2015. That meeting came shortly after the Australian prime minister took power in Canberra, on the back of an internal Liberal Party coup against incumbent Prime Minister Tony Abbott.
JAKARTA — After a tense campaign marred by religious protests and phone-tapping allegations made by a former president, Indonesia’s capital will have to wait two more months to learn who will run the city of 10 million people. Incumbent governor Basuki Tjahaja Purnama, known as “Ahok,” will face a runoff election in April against a former education minister who was backed by Islamist protesters, turning the election into a test of religious tolerance in the world’s largest Muslim-majority country. Purnama, a Christian of Chinese descent and an ally of President Joko Widodo, won around 40% of the votes cast Wednesday according to preliminary counts. That was roughly the same as his rival, Anies Basdewan, a Muslim whose reformist credentials came under scrutiny when Islamist supporters sought to have the sitting governor jailed over a speech in which he allegedly insulted Islam.
JAKARTA — A tumultuous election campaign for the job of running one of the world’s biggest, most traffic-clogged and flood-prone cities drew to a relatively placid close over the final weekend before the Feb. 15 vote. Candidates in the race for the Jakarta governorship ended a last televised debate by grinning cheek-to-cheek in a group selfie photograph. As staged as it was, it was a rare cordial moment in a combative campaign. It came the day before Islamist groups held a last-ditch rally against the sitting governor, who they accuse of blasphemy. The rally drew a much smaller turnout than the hundreds of thousands of people who flocked to two similar protests in late 2016 against the incumbent governor, adding to the sense that the contentious election campaign had left participants drained. “It has been divisive but I am happy that the debate in the end is focusing on policies and programs, it takes the tensions down a bit,” said Sandiaga Uno, a candidate for vice governor and running mate of Anies Baswedan, one of two challengers seeking to oust the embattled incumbent, Bakuki Tjahaja Purnama, known as “Ahok.”
YANGON — A Feb. 3 report by the U.N. Human Rights Council featured harrowing accounts by Rohingya refugees in Bangladesh of army abuses in northern Rakhine, including the gang rape of women and murder of children. In response to the report, Myanmar’s government, which is led by State Counselor Aung San Suu Kyi, initially softened its prior outright denials of military abuse and promised to investigate the allegations. But on Feb. 7, it said it needed more information from the U.N. Naypyitaw’s earlier denials had prompted criticism from around the world. On Jan. 20, Yanghee Lee, the U.N. human rights envoy to Myanmar, said: “For the government to continue being defensive when allegations of serious human rights violations are persistently reported, that is when the government appears less and less credible.”
Previously, Myanmar railed against a meeting of the Organization of Islamic Cooperation on the Rohingya crisis, held in Malaysia on Jan. 19, during which Malaysian Prime Minister Najib Razak reiterated harsh criticisms of Naypyitaw’s policies, saying: “The killing must stop, the burning of houses must stop, the violation of women and girls must stop.” He had earlier urged international intervention in Myanmar and accused the government of “genocide” against the Rohingya.