DILI – East Timor, also known as Timor-Leste, faces bleak economic prospects, amid predictions that the oil and gas that account for three-quarters of the country’s gross domestic product could run out in less than a decade. “We are aware of the risks and we working toward managing those risks,” Araujo said, discussing the vital but finite oil and gas reserves. The government has almost $17 billion saved in a petroleum fund, but estimates based on current spending and energy price forecasts suggest the fund will be depleted less than a decade after the last of the oil and gas has been extracted.
JAKARTA – Indonesia’s vast but much-plundered forests are likely to be further degraded in coming years as the country’s pulp and paper sector expands. That’s according to new research suggesting that 30 per cent of timber used in industry comes from illegal and unsustainable sources. The analysis suggests that if Indonesia’s pulp and paper mills were to operate at full capacity, and if companies were to go forward with plans for multi-billion dollar investments in new mills, the industry would need to double its legal supply of wood to meet demand.
YANGON – In a rare discussion of the party’s economic thinking, Han Tha Myint said the NLD wants to press on with the liberalization of the banking sector. In October 2014, nine foreign banks were awarded restricted licenses to operate in Myanmar as part of a gradual opening up to foreign investment. Foreign banks are limited to a single branch each, cannot serve individuals or locally owned companies, and are prohibited from making loans in kyat, the local currency. Han Tha Myint maintained the NLD would loosen these restrictions, saying, “It will be much better for the economy.”
YANGON – The emergence of malarial parasites resistant to the front-line treatment artemisinin could put hundreds of millions of people are at risk, according to new research in The Lancet. Drug-resistant malaria was found just 25km from the Indian border in northwestern Myanmar, a country that is now considered “the frontline in the battle against artemisinin resistance as it forms a gateway for resistance to spread to the rest of the world,” according to Dr. Charles Woodrow of the Mahidol-Oxford Tropical Medicine Research Unit, senior author of the new study.
YANGON – After 3 months of protest, a Feb. 10 deal on education reform allows activists help revise a divisive education law passed last year. Zaw Htay, a senior officer in President Thein Sein’s administration, told the Nikkei Asian Review that the deal between the government and the protestors was historic. “There has never been a compromise like this between the government and students in our history,” said Zaw Htay. But whether or not the education stand-off is over will depend on how parliamentarians react to the revised law. “So far, this is just a paper agreement, so we will wait and see what the parliament does,” lawyer Robert San Aung told the Nikkei Asia Review.
YANGON – Gusmão’s tenure saw economic growth hit double digits on the back of oil and gas revenues. New roads have been built, linking isolated mountain villages to nearby towns, and electricity has been provided to 60 per cent of the population in what remains one of Asia’s poorest countries. “He kept the peace and investment increased,” said Tony Jape, a leading Timorese businessman and founder of Dili’s largest shopping mall. But two of Gusmão’s ministers were charged with corruption during his time as prime minister, while connected cadres from the resistance era have often had the first options on juicy government contracts for new roads.
PELABUHAN RATU, INDONESIA — This small fishing town on Java’s southwest coast is best known for the legendary sea queen Nyi Roro Kidul, a spurned princess turned mermaid who is said to snatch whatever man takes her fancy from the miles of beach that forms the town’s frontier with the Indian Ocean. But the predatory queen is not the only marine enigma swimming through the turbulent undertow off the rain-swept coast. For Hisayasu Ishitani, a chain smoking 72-year old Japanese, now in his 5th decade in Indonesia, the local waters mean a plentiful supply of eel — and the opportunity to fill a growing market gap in his Japanese homeland.
JAKARTA – Xanana Gusmao, the former leader of East Timor’s separatist revolt against Indonesian rule, resigned as the young country’s prime minister on Friday morning. The move follows a year of speculation that Gusmao would step down before the end of his term in 2017 due to ill health. At one point, he had said he would resign in September 2014. A replacement for Gusmao, 68, has not been named. Speculation centers on Rui Araujo, a former health minister. Former President Jose Ramos-Horta called Araujo “an outstanding leader – honest, experienced, humble,” in comments to the Nikkei Asian Review.
JAKARTA – In a darkened university classroom in east Jakarta earlier this week, 50 or so students looked straight ahead, silent. On screen in front, a shriveled, twitchy old man recounted how he killed, often gruesomely, a half century before. “Human blood tastes both salty and sweet, did you know that?” Inong, the murderer, said. He was recounting a half century old memory – that of his own savagery carried out during Indonesia’s mass killings of 1965-66. The footage appears in director Joshua Oppenheimer’s latest, The Look of Silence, which was given a rare airing in the Indonesian capital.
JAKARTA – Indonesia’s government hopes to double infrastructure spending in the coming year. China recently established a new regional infrastructure investment bank. “China can bring both finance and project skills to Indonesia,” said Peter McCawley, an infrastructure focused economist at Australian National University. “In the last 20 years, China has shown a truly astonishing ability to construct infrastructure investments within China.”