JAKARTA — A new government directive requiring companies to hire 10 Indonesians for every expatriate is raising alarm among businesses and compounding concerns about the Joko Widodo administration’s growing protectionism. New labour rules, announced on June 29 by the Ministry of Manpower and Transmigration, were followed three weeks later by the introduction of higher import duties on a variety of consumer goods, such as clothes, carpets, cars, alcohol, tea and coffee. Boston University’s Emeritus Professor Gustav Papanek, who has studied the Indonesian economy for more than five decades, said the stiff new regulations are not the best way to go about reshaping employment conditions. F “Indonesia needs to attract three times as much foreign direct investment as it attracts now, not discourage people,” Papanek said.
JAKARTA – Ryamizard Ryacudu, another former army head and a Megawati loyalist, received the Defence portfolio. His appointment will hardly go down well in Aceh, where he led the army’s 2003 campaign to crush local rebels, or in West Papua, where he is said to have applauded the assassination of a prominent local rights campaigner. “It is notable that Jokowi has broken with a convention that the Defence Minister is a civilian,” said Michael Buehler, a southeast Asia specialist at the School of African and Oriental Studies. “The appointment is a real disappointment,” Buehler told The Edge Review.