Pods vie to tempt Southeast Asia’s coffee drinkers – Nikkei Asian Review

Coffee plantation on the hills close to Ermera in East Timor (Photo: Simon Roughneen)

JAKARTA — Southeast Asia hosts some of the world’s leading coffee growers and exporters, such as Indonesia and Vietnam, the world’s fourth- and second-biggest producers respectively. Neighbors such as East Timor, Laos, Myanmar, the Philippines and Thailand are home to smaller coffee-growing regions. Their beans have typically been for export. Many end up in cups in countries such as the U.S., the biggest importing country, and Italy, the third-biggest importer, according to the United Nations Food and Agriculture Organization. Italy is also the home of espresso, the strong and sometimes bitter caffeine shot that for many drinkers is the quintessential coffee pour. Now, coffee consumption is on the rise in what were mainly exporting countries of the region, and the race is on to see which kind of coffee will lure would-be local drinkers.

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Booming Southeast Asian vehicle sales drive urban congestion – Nikkei Asian Review

As car sales increase in Myanmar, traffic jams are increasingly common in Yangon, the biggest city and commercial center of the country (Photo: Simon Roughneen)

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.

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Pence softens Trump’s trade talk during Indonesia visit – Nikkei Asian Review

U.S. Vice President Mike Pence addresses American CEOs in Jakarta on April 21 2016, flanked by Indonesian counterpart Jusuf Kalla (Photo: Simon Roughneen)

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.

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Asian palm oil producers slam European moves to restrict market access – Nikkei Asian Review

Indonesia's co-ordinating minister for economic affairs Darmin Nasution at a recent business conference in Jakarta (Photo: Simon Roughneen)

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.

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Debt and corruption muddy US-Cambodia relations

Hun Sen, Cambodia's PM , at the ASEAN summit in Hanoi in late 2010 (Photo: Simon Roughneen)

SINGAPORE — In contrast to the anguish and astonishment expressed in many national capitals, Cambodia’s Prime Minister Hun Sen welcomed Donald Trump’s election as U.S. president in November. While the warm response augured well for Phnom Penh’s often troubled relations with Washington, prospects for improved bilateral ties have since faded. In January, the month of Trump’s inauguration, Cambodia pulled out of the “Angkor Sentinel” joint military exercises with the U.S. In early April Phnom Penh followed up that snub to Washington by halting a nine-year-old humanitarian program run by the U.S. military that involved building schools and maternity facilities in rural areas of Cambodia. These affronts were punctuated by testy exchanges between the U.S. embassy in Phnom Penh and the Cambodian government, notably over a political parties law passed in February that will make it easier for the Cambodian courts to suspend or even dissolve opposition parties. “Any government action to ban or restrict parties under the new amendments would constitute a significant setback for Cambodia’s political development, and would seriously call into question the legitimacy of the upcoming elections,” the embassy said, referring to local elections scheduled for June and a national poll due in 2018. The law has been widely criticized in Cambodia, too. Chak Sopheap, executive director of the Cambodian Center for Human Rights, described it as “an affront to the principles of liberal democracy, [which] effectively gives the ruling party a delete button which can be arbitrarily applied to their political opponents at any time.”

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Suu Kyi’s NLD has a growth problem – Nikkei Asian Review

Yangon's traffic has grown heavy since the country's economy began growing (Photo: Simon Roughneen)

YANGON — Aung San Suu Kyi, Myanmar’s de facto leader, made a rare admission of fallibility in a televised address to the nation on March 30. “We did what we could for the sake of our country and the people in the first year,” she said in a speech marking the first anniversary of her civilian-dominated government. “We know that we haven’t been able to make as much progress as people had hoped.” That seemed an uncharacteristic acknowledgement of a sputtering economy under her National League for Democracy-led administration. Key economic data suggest that “progress,” as Suu Kyi herself conceded, has slowed. Approved foreign direct investment is estimated to have fallen by a third in fiscal 2016, which ended on March 31, from the record $9.4 billion achieved in fiscal 2015, the last year under the government of former President Thein Sein. Annual growth in gross domestic product is expected to slow to 6.5% in fiscal year 2016, from 7.3% the previous year, according to the World Bank.

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Indonesia’s indigenous leaders press land claims – RTE World Report

Traditional regalia on display at Tanjung Gusto in North Sumatra (Photo: Simon Roughneen)

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.

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Jakarta takes steps toward haze-free Southeast Asia – Nikkei Asian Review

Sofyan Djalil, Indonesia's minister for agrarian and spatial planning, right, watches  a March 15 2017 panel discussion on curbing Indonesia's peat forest fires (Photo: Simon Roughneen)

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.

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Leicester lessons for Asia’s European soccer investors – Nikkei Asian Review

Football gamblers watching opening day of 2013-14 English football season in Tamwe, Rangoon (Photo: Simon Roughneen)

JAKARTA — If Claudio Ranieri was in front of a television when English Premier League soccer champions Leicester City hosted five-times European club champions Liverpool on Feb. 27, the mild-mannered Italian might have been tempted into an uncharacteristic show of anger. The 65-year-old had been sacked as team manager three days previously by Leicester City’s billionaire Thai owner and chairman Vichai Srivaddhanaprabha, founder of the King Power Group chain of duty-free shops. After a series of tepid losses, the team had been dragged into a struggle with a half dozen rivals desperate to stave off relegation from the premier league to the less high-profile English Championship, where Leicester City had languished for a decade prior to 2014. But with Ranieri gone, the team rediscovered the verve that brought them success the previous year. Ranieri’s ex-charges followed their comfortable 3-1 win over Liverpool with a March 4 victory over Hull City by the same margin.

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Asian universities edge up world rankings – Nikkei Asian Review

U.S. President Barack Obama fields questions at Yangon University on Nov 14 2014 (Photo: Simon Roughneen)

JAKARTA — One of the world’s leading university ranking systems has found significant improvement in Asia’s tertiary education institutions over the past year, although long-established Western bodies continue to dominate the field in most key academic subjects. QS Quacquarelli Symonds, a London-based group, published its 2017 rankings covering 1,127 universities from 74 countries across 46 subjects. Harvard University and the Massachusetts Institute of Technology, described as “perennial rivals” by QS, led all universities in the field in 15 and 12 subjects, respectively. But the prominence of Asian universities has been increasing in recent years. While elite U.S. and European institutions are likely to remain at the top of the rankings in the near future, more Asian universities nonetheless are moving up the list, as regional economies grow and education spending increases. “It seems certain that Asia’s leading institutions will continue to strongly displace the second tier of North American and European institutions,” said QS research director Ben Sowter.

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