The Indonesia Economy

Indonesia is not a developed country, but an emerging middle-income country which has made enormous gains in poverty and Indonesia has the largest economy in Southeast Asia, just as Nigeria has the largest economy in Africa even Nigeria had an annual average growth of 6.8% from 2005 to 2013, but couldn’t make enormous gains in poverty.

Indonesia continues to be a rising power both in the Association of Southeast Asian Nations (ASEAN) and the G20 because Indonesia has been ably maintained political stability and sustainable economic development is only possible if there is political development. Indonesia learned bitter lessons moving from authoritarian rule to a robust and vibrant democracy and building a dynamic economy after being crippled by the 1997-98 Asian financial crisis.

Indonesia’s reformasi after the Asian crisis of 1997-98 transformed the country and according to McKinsey, Indonesia is poised to become the 7th largest economy by 2030, ahead of the UK and Germany. Their bitter experience has made them drew lines for CORRUPTION and SENTIMENTS, though not 100%, at least to a very low level. If Nigeria can draw lines for corruption and sentiments, it would maintain political stability and that would transform Nigeria into a middle-income country.

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Nigerians welfare abroad

Over the years, 118 Nigerians have been killed in South Africa, while 13 out of these were killed by South African Police and on June 13, Mrs Elizabeth Ndubuisi-Chukwu, the Deputy Director-General of Chartered Insurance Institute of Nigeria was found dead in her hotel room in Johannesburg when attending the conference of the African Insurance Organization, AIO, in South Africa, also Nigerians were being attacked in Ghana and Togo, especially, Nigerian traders.

Is this the way Nigerians would be attacked or killed when the implementation of the African Continental Free Trade Area (AfCFTA) agreement start?

It’s high time the Nigerian government to act seriously about the attacks on Nigerians residing in other countries, issuing a warning to those countries isn’t good enough, the safeguard of Nigerians and their properties should be discussed when signing other phases of the AfCFTA agreement. Also, Mr president should issue an Executive Order which will mandate Nigerian embassies abroad to protect Nigerians, Nigerian foreign missions don’t care about Nigerians.

In 2008 when I visited Singapore for vacation, I had a problem and I went to Nigeria’s High Commission for help, getting there, I was told that they can’t help and I went my way to solve my problem.

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Indonesia sustainable human capital development for inclusive innovation

Highly educated and well trained human resources are critical for an innovation driven economy and for Indonesia to sustain its future economic growth and to improve social welfare, the government has issued regulations, in which domestic taxpayers who conduct research and development (R&D) could obtain a gross income as high as 300% of the cost of their R&D activities, though the R&D activities must be conducted in Indonesia and produce new inventions, innovations, new technology and/or a transfer of technology to develop industries.

Also, domestic taxpayers who open a new business or expand their existing businesses in labours intensive sectors could enjoy a net income tax deduction of 60% of the capital they invested as fixed assets and local taxpayers who organize working programs, internships and/or educational activities to develop human resources based on a certain competency could obtain a gross income as high as 200% of the funds they had spent for the activities. Indonesia is learning from Singapore and South Korea, which have strong and committed governments that proactively set policy and provide incentives to push human capital development.

They strongly believe that high-quality human capital is key to maintaining their global competitiveness and to sustain growth.

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Renault is re-entering Nigeria’s automobile space

Multinational auto manufacturer, Groupe Renault has announced that it is re-entering Nigeria’s automobile space following a partnership agreement with Coscharis Motors Plc, one of the leading car dealers in the African country.

The auto dealer said that to kick start the strong cooperation, which would involve both local production and distribution, two of the Renault variants, namely Logan and Duster, would be assembled in the existing Coscharis Assembly facility in Lagos while Renault Kwid and Renault Oroch would be imported as Complete Built Unit in due course of the partnership.

The Senior Vice President and Chairman of the Africa, Middle-East, India region of Groupe Renault, Fabrice Cambolive said, “With a population of over 200 million, Nigeria is a strategic African country where Groupe Renault will extend its footprint.

It’s very unfortunate that many Nigerians don’t see the power in our population, we see it as a burden while foreign investors see it as Strategic Marketplace Initiative. MTN Group Limited saw Nigeria as a strategic African country. MTN came and smiled to the bank. Mohan Vaswani CEO of the Tolaram Group came to Nigeria with two containers of Indomie and he distributed it, at that time, the population was 90m. Today, every instant Noodle is Indomie.

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President Muhammadu Buhari has issued Executive Order 003

The order mandates all Ministries, Departments and Agencies (MDAs) to source their textile needs locally.

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, told Service Chiefs and heads of paramilitary agencies this week that “we have the mandate of Mr. President to ensure that all uniformed services and theatre wears in hospitals and medical facilities be sourced locally from the Nigerian CTG sector.

Mr. Emefiele said our model in achieving this presidential directive is to facilitate long term contracts (five years or more) with our textile and garment factories to produce uniforms for our armed forces and uniform services using local fabrics and textile materials. We are not naive of the fact that the nature of your jobs will warrant special quality and security around the production of your wares. My team will work with your nominees toward ensuring requisite quality and security associated with your uniforms. Your nominees will also join our team to inspect the various textiles and garment factories to ensure their readiness to be engaged on long term contracts to forestall breaches.

It’s very unfortunate; we print passport overseas, production of uniforms for armed forces and services overseas.

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Nigerian e-passports

The Machine Readable Passport, MRP, used by Nigerians before the coming of the Obasanjo administration was produced locally by the Nigerian Security Printing and Minting PLC, popularly called MINT. The MINT is the Nigerian Government’s official currency and other security documents printer but the NIS stopped to issue the MRPs to Nigerians after the launch of the e-passport in 2007.

When the Nigerian former President Olusegun Obasanjo paid a state visit to Malaysia in 2003 and visited Iris Corporation office where he witnessed a demonstration of the production of the e-passport, he was impressed by the security features of the e-passport. Instead of Obasanjo to return home and upgrade MINT to produce E-passport for Nigerians, he invited Iris Corporation to spearhead the implementation of Nigerian e-passport and ISTL was registered with the Corporate Affairs Commission on 20th May 2003 to help the country produce the e-passport. With that, ISTL entered into a Public-Private Partnership, PPP, with the Federal Government for the upgrading of Nigerian passport to e-passport.

Since then, Malaysia has been responsible for producing the Nigerian e-passports until this year when MINT signed MoU with ISTL to domesticate the production of international passports (e-passports), in which the e-passports will be printed locally.

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Why you should invest in Nigeria today ?

Under the Nigerian law, it is required for every foreigner investing in a local business in the country to procure a Certificate of Capital Importation (CCI). The CCI procured is on the inflow of foreign currency, raw materials or equipment imported into the country, confirming an inflow. The certificate is issued by a Nigerian bank and in the name of the applicant’s company.

The primary purpose of the CCI is to guarantee access to the official foreign exchange market for repatriations of capital and returns on investment.

According to the National Bureau of Statistics (NBS), the total value of capital importation into Nigeria stood at $8,485m in the first quarter of 2019, in which Portfolio investment, accounted for 84.21% ($7,145.98m) while other Investment, accounted for 12.91% ($1,096.15m) and Foreign Direct Investments, accounted for 2.86% ($243.36m) of total capital imported in 2019.

Despite the security challenges faced Nigeria in 2019, the total value of capital importation represented an increase of 216.03% compared to Q4 of 2018 and an increase of 34.61% compared to Q1 2018.

The UK that issues travel advisory regards Nigeria, emerged as the top source of capital investment in Nigeria in Q1 2019 with $4,531.22m, accounting for 53.40% of the total capital inflow in Q1 2019.

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Apple to move Mac Pro production to China

Last week when I wrote that President Trump trade war with China is dragging on economic growth not just in the US and China that Apple which is currently the largest corporate taxpayer in the US is pleading with President Trump for China trade war truce that its tax contributions would be badly damaged by tariffs on its China-produced goods, then some said I don’t know what I am saying and now, Apple is moving Mac Pro production to China.

The Wall Street Journal reported that Apple will shift production of its Mac Pro computers to China, the desktop is the only major Apple device produced in the US, in Texas to be exact. Apple has chosen a Taiwanese contractor, Quanta Computer Inc., to manufacture the $6,000 desktop computer near Shanghai.

Even though Mac Pro is not a high volume seller, but the shift is a winning point for China, no doubt, President Donald Trump would be angry with this shift as he has been pressing US companies, in general, to make things in America. If Trump goes on with his plan to slap tariffs on all imports from China, that would raise prices for US consumers. Instead of US consumers paying less, they will be paying more and living costs would rise. With all these, Donald John Trump will still be the 46th president of the United States in 2020.

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US tensions with Iran

The Yankees woke up Friday morning to the news President Trump nearly took them to war by calling off a military strike on Iran just 10 minutes before it was supposed to be carried out. The strike was in retaliation for Tehran shooting down a US drone.

President Trump is having a trade war with China, which is dragging on economic growth not just in the US and China, but globally even Apple which is currently the largest corporate taxpayer in the US is pleading with President Trump for China trade war truce that its tax contributions would be badly damaged by tariffs on its China-produced goods and President Trump wants to go to war with Iran. Is that the way to make America great again?

President Trump has no political or military experience, that’s why he is turning the world upside down. Arabian Peninsula is the world’s largest peninsula and Oil is a particularly strong export of the region in which OPEC countries hold nearly 82% of the world’s crude oil reserves of which 65% from that region. Hope you can comprehend what will happen if Trump goes to war with Iran. The good news is that US airlines have now been banned by the FAA from flying over the area where the drone was shot down.

To save the world from Trump’s war, the Yankees have to reject Trump at the poll in 2020.

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Creating something out of nothing in Indonesia

In Bojong Menteng subdistrict, Bekasi, West Java, the local residents collaborate with authorities to turn a lake into an aesthetically pleasing and affordable tourist spot, in which one does not need to pay to enter the lake area except for bamboo rafts which are available for rent and cost 70Udisability for adults and 35US cents for children above 3 years old while infants and people with disabilities, they are free.

 

Most of the visitors were women and their children, who walked about the rafts as their mothers took pictures, taking selfies at the gazebos and piers and by the lake’s main sign, which is made of recycled plastic bottles.

 

On of those things, I found passionate about Indonesians is that they can create something out of nothing regards wealth creation, their mind is similar to Chinese even one of the names I called my wife is “Chinese woman, “she looks more of a Chinese but she is a Javanese (the largest ethnic group in Indonesia).

  

The number of visitors on average varied from 500 on weekdays to 1,000 on weekends. There are a lot of similar initiatives across Indonesia, which have created jobs for the locals, likewise, a riverside village was turned into an amazing rainbow village in Malang, which attract both foreign and local tourists. This was initiated by students.

 

 

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