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Jakarta Gubernatorial Election 2017: Who Will Be Eliminated?

Igor Dirgantara

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Approaching the polls February 15, 2017, competition has been increasingly rigorous among the three candidates who are contesting in the Jakarta Gubernatorial Election (Pilgub) 2017, namely, incumbent duet Basuki Tjahaja Purnama-Djarot Saiful Hidayat (Ahok-Djarot), Agus Harimurti Yudhoyono-Sylviana Murni (Agus-Sylvi), and Anies Baswedan-Sandiaga Uno (Anies-Sandi).

Many said that the fight in Jakarta gubernatorial election this time is a ‘proxy war’ of the rivalry among the political elites Megawati Soekarno Putri, Susilo Bambang Yudhoyono and Prabowo Subianto. Ahok-Djarot is supported by the Indonesian Democratic Party of Struggle (PDIP), the People’s Conscience Party (Hanura), The Functional Group Party (Golkar), and the National Democratic Party (Nasdem). Agus-Sylvi is supported by the Democratic Party, the United Development Party (PPP), the National Awakening Party (PKB) and the National Mandate Party (PAN). Whereas Anies-Sandi is supported by the Great Indonesia Movement Party (Gerindra) and the Prosperous Justice Party (PKS). Presently, the Jakarta gubernatorial election is entering the stage of formal debate among the candidates that will begin on January 13, 2017. In the previous informal debate that was aired by some private televisions, the Anies-Sandi duet looked dominating over other candidates.

Predictably the Jakarta Gubernatorial Election 2017 will take two rounds, because the winner is required to get 50%+1 vote. Agus-Sylvi, Ahok-Djarot, and Anies-Sandi are having equal opportunity to win and at the same also potentially to lose, or will not qualify for the second round. Support to the three pairs of candidates are still fluid and attitude of the voters tend to be still able to change until the end days before the voting day February 13, 2017. Supporting votes for the three pairs of candidates is nearly the same in number. Electabilities of the three pairs of candidates who will compete are still overlapping each others within the margin of error. Statistically, no certainty can be made on which pair of candidates will win.

Despite of Good Performance’s of Ahok, Jakarta’s Residents Want New Governor

From the results of survey conducted by SPIN (Survey & Polling Indonesia) during August-December 2016, it was revealed that Ahok is still considered by the public as the figure who best understands the problems in Jakarta (73%), compared to Anies (40%), or Agus (33% ). The pair of incumbent governor Ahok-Djarot has had the advantage in selling the programs they have achieved.

On the other hand, his two contenders focused on issues that have not been covered yet by Ahok-Djarot. Anies-Sandi pairing, for example, developed issues of job availability, basic stuff price control, and clean water availability in Jakarta. These issues were raised as a criticism against Ahok’s policies that were more physical, rather than human oriented. Anies-Sandi also intends to stop the policy on reclamation in Jakarta Bay which has been being contested by many environmental activists. Meanwhile, Agus-Sylvi’s programs highlighted more the provision of financial assistance, such as the granting of Rp 5 million per poor family, or Rp 1 billion per RW (Rukun Warga) in Jakarta. It is obvious that the 2017 Jakarta gubernatorial election will be the momentum to evaluate the incumbent governor’s performance and to draft the overall improvement.

Significantly, the trend of favorability to Ahok as the incumbent has decreased. Only as low as 30% believe that Ahok deserves to be re-elected Governor, while 55% want a new figure for Jakarta governor. Ahok’s positive popularity is equal to his negative popularity. Negative sentiment against Ahok is also prevalent in various segments of Jakarta voters due to the alleged religious defamation case which has resulted in a commotion and protest by Muslim community. Presently, Ahok is the accused (defendant) on the religious defamation case before the court for quoting a Quranic verse in surah Al-Maidah 51 during his working visit in the Thousand Islands. As at January 10, 2017, the case of alleged religious defamation by Ahok was entering the fifth trial round.

Despite, in one side, majority of Jakarta people being rational voters, but on the other hand they are in fact unable to escape from the political choice based on primordialism. The anti-Ahok struggle is stronger due to the religious motive. Ahok is at a disadvantaged position because he comes from minority ethnic and religion. Ahok is now in trouble with a sensitive issue of religious defamation. His status as the accused becomes a psychological barrier for the public from reelecting him. Primordial identity has been used for political benefit and gaining support. Ahok’s weakness is none of Muslim-based parties supports him. However, for Ahok’s supporters, he was merely a victim of religion politicization. Although it is possible, but somewhat difficult, for Ahok to rebound his electability within this remaining one month.

In contrast, Anies Baswedan is seen as a figure who is more caring to the Jakarta people (57%), than Ahok (52%), or Agus (47%). Anies is also considered more as representing the entire strata of Jakarta people (52%), compared to Ahok (41%), and Agus (39%). Jakarta’s public is indeed expecting a new leader who has respect and integrity, represents all strata of the Jakarta people, capable of creating jobs, and has the ability to improve education of his residents.

Agus Harymurti Yudhoyono is today very popular as a candidate for Jakarta Governor. His personal branding as a young man and handsome has heavily attached in Jakarta’s people. By hearsay, human is an eye animal. A candidate who is physically attractive may earn 3 times more votes, particularly from the first-time and female voters segment. This is because the first impression that begins from physical appearance of someone is usually difficult to change. Theoretically, one’s first image is usually based on visual aspect. Furthermore, human’s mind is limited, thus the voters’ perception tends to be filtered by a physiological filter. This is the advantage of Agus Harimurti Yudhoyono that is also possessed by Sandiaga Uno.

This differs with Ahok who has controversial leadership style in the public eye. The voters in Jakarta presently give Anies Baswedan and Agus Harimurti an opportunity to be the new governor of Jakarta. However, Anies Baswedan is very vulnerable to be rushed by negative religious issues, such as allegation as a follower of Shia or Liberal Islam. Whereas Agus Harymurti Yudhoyono is deemed lack of experience and as a part of a political dynasty or a son of former President Susilo Bambang Yudhoyono.

Closing Remark

In 2017, the Jakarta people will predictably have a new Governor on February 15. He will be either Agus Harimurti Yudhoyono, Anies Baswedan, or Djarot Saiful Hidayat. This means, if the incumbent Ahok-Djarot pair even wins, there will be very little chance for Ahok to be the Jakarta Governor for the second period because of his accused status and potential imprisonment related to the religious defamation proceeding to which he is now subjected. Ahok will remain able to survive if there is a gigantic power intervening his case. However, this may trigger a national political uproar that is even greater. Jakarta Gubernatorial Election 2017 indeed correlates with the process and decision of Ahok’s court trial that is still current.

Approaching the voting day February 15, 2017, each of the candidates will be campaigning more actively to grab undecided votes and swing voters, particularly of first-time voters, Muslim voters, Javanese voters, and the urban middle class. In the capital Jakarta, social media can be used as a tool to grab supports and influence these voters. However, undeniably, the Ahok’s religious defamation case indeed gave benefit and opportunity to Anies-Sandi and Agus-Sylvi pairs to win on the Jakarta gubernatorial election on February 15, 2017. Even if Ahok loses the election, the public will still look at Ahok’s performance that has been deemed good as a work barometer for anyone who will succeed him, no matter whether he is a polite Muslim or not.

Igor Dirgantara is Lecturer at Faculty of Social Politics, University Jayabaya, Jakarta, and Director Survey & Polling Indonesia (SPIN).

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Southeast Asia

Will Mahathir Reset China-Malaysia Trade Relations?

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A shock electoral upset has just returned 92-year-old Dr Mahathir Mohamad to the prime ministerial chair in Malaysia. The run-up to this climax was muddled by a miasma of fake news, lurid allegations and outright conspiracy theories from eitherside of the political divide. China-baiting was inevitably drawn into this tawdry mix despite mainland investments being a stabilizing main stay of the local economy.

According to an Economic Intelligence Unit report last year, Malaysia was the fourth-largest recipient of mainland Chinese direct investments – right behind Singapore, United States and the autonomous Chinese province of Hong Kong. Although the sum total of Chinese investments in Malaysia has not been adequately tallied,the US$100 billion Forest City project provides a snapshot of the staggering amounts being invested into the local economy.

While former Prime Minister Najib Razak hailed these investments as an imprimatur ofhis government’s investor-friendly policies, the opposition camp (and new government) accused him of “selling out to China”. In reality, one doubts whether foreign consortiums canmatch the scale, cost-effectiveness and speed of execution of many Chinese-led projects in Malaysia.

Business Compradors

Dr Mahathir has particularly taken issue with the inadequate number of local jobs created by Chinese investments in Malaysia. It is an argument not without merit.Overseas Chinese infrastructure projects are known for their heavy reliance on mainland labour, machines and supplies – of the lock, stock and barrel variety – tokeep costs, graft and middlemen interference to the lowest possible scale.

Curiously, the backbone of Dr Mahathir’s electoral tsunami came from the ethnic Malaysian Chinese community who openly hailedthe global ascent of China. That was until theydiscovered thatmainland business models accommodated as few middlemen as possible.It was Alibaba on a massive scale, missing 40 thieves and in perennial need of 40innovators.

Many Malaysian consumerssave thousands of ringgit each year by purchasing a variety of consumer products directly from China instead of forking out a hefty mark-upat local stores.Unsurprisingly, there are now growing calls to tax online purchases from China. This is not going to help budget-strapped Malaysians who voted in the new administration on the back of complaints over rising living costs. Malaysia’s shadow economy has been estimated by various studies to range between 30 percent and 47 percent of its GDPup till 2010.

The anti-China narrative therefore may be couched in terms of multifaceted grievances like jobs and the South China Sea but it primarily boils downtoincentives for middlemen who contribute little or nothing in terms of value-additions to projects, productsor services offered by mainland companies. These modern-day compradors have an ally in another area bereft of value – added or otherwise.

Media Compradors

The biggest impediment to the Malaysian economy is not China, its business modus operandi or the lack of local talent. It is the Malaysian media which has abjectly failed to relay grassroots ideas and innovations to national policy-makers for decades.

The author himself vividly remembers the lament of Dr Mahathir’s former national science advisor on the dearth of science journalists in Malaysia. This translates to recurring losses in taxpayer money.There is an oft-told account of how a fact-findingdelegation to the United States, seeking particular expertise in renewable energy technology,were told that the expert they were looking for was a Malaysian academic back in Kuala Lumpur!

Researchers needing critical economic or scientific data on Malaysia are likely to get them from foreign sources as even google cannot cope with the bottomless insipidity and juvenile meanderingsof the local media. Publicity-seeking experts with dodgy backgrounds are routinely sought for their banal insights and quotes in return for guaranteed filler spaces in a lack lustre media.Malaysia is gradually losing its economic and intellectual competitiveness due to the entrenched practise of mediocrity promoting mediocrity – egged on by Western interests.This forms the main backdrop to the current anti-China narrative.

Local media stalwarts privately blame politicians, in particular Dr Mahathir himself (during his previous 22-year reign) for the lack of media vigour and freedom in Malaysia. While media restrictions undeniably exist, one wonders how proposed articles on topics such as Open Governance could be seen assubversive.

It is high time to drain the swamp in Malaysia. Dr Mahathir has already indicated that the bloated 1.6 million-strong civil service in Malaysia would be pruned to promote economic and government transparency. For decades, successive governments had rewarded personal loyalty with plush posts and contracts. Malaysians now have another chance to demand efficient, meritocratic and transparent governance. Not mass-mediated bogeymen, viral passions and pies-in-the-skies.

The billion-dollar question now is whether the new administration will be able tousher in a transparent and vibrant media – one that can explore greater synergies within and abroad.Otherwise, Malaysia’s relations with its neighbours and trading partners are bound to deteriorate, along with its economy.

An abridged version of this article was published by CCTV’s Panview on May 14, 2018

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Changing dynamics of China-India and China-Japan ties

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Over the past year, there has been a growing interest with regard to the vision of a Free and Fair ‘Indo-Pacific’. While this term has been used in recent years by policy makers from the US and Australia and has been pushed forward by a number of strategic analysts, a number of developments since last year have resulted in this narrative gaining some sort of traction.

US President Donald Trump during his visit to South East Asia and East Asia in November 2017, used this term on more than one occasion, much to the discomfort of China (which prefers ‘Asia-Pacific). On the eve of his visit to India last year, Former Secretary of State, Richard Tillerson while speaking at the Centre for Strategic and International Studies (CSIS, Washington DC) spoke about a larger role for India in the Indo-Pacific, and the need for India and US to work jointly. Said Tillerson:

     ‘The world’s center of gravity is shifting to the heart of the Indo-Pacific. The U.S. and India, with our shared goals of peace, security, freedom of navigation, and a free and open architecture, must serve as the Eastern and Western beacons of the Indo-Pacific, as the port and starboard lights between which the region can reach its greatest and best potential’.

In November 2017, the Quad grouping (Australia, US, India and Japan) met on the sidelines of the ASEAN Summit pitching not just for a rules based order, but also in favour of enhancing connectivity. Commenting on the meeting, US Department of State had said that the discussions were important and members of the Quad were:

‘committed to deepening cooperation, which rests on a foundation of shared democratic values and principles.”

Earlier too the four countries had coalesced together, but as a consequence of Chinese pressure, the grouping could not last.

There have also been discussions of coming up with connectivity projects. While this was discussed during Australian PM, Malcolm Turnbull’s meeting with Donald Trump in February 2018. In April 2018, representatives of Japan, US and India met in New Delhi and committed themselves

Indo-Pacific and China factor 

While members of the Quad continuously denied, that the Indo-pacific was specifically targeted at China, it would be naïve to believe, that this assertion. In fact, during a visit to Australia, French President Macron who is trying to position himself as one of the frontline protagonists of liberalism in the Western world, spoke about the need for India,  Australia and France to work together in order to ensure a rules based order.  Commenting on the need for India, France and Australia to jointly work for a rules based order, and checking hegemony (alluding to China), the French President, Emmanuel Macron, stated:

   ‘What’s important is to preserve rules-based development in the region… and to preserve necessary balances in the region….It’s important with this new context not to have any hegemony,”

Changing dynamics of China-India and China-Japan ties

While it is good to talk about a rules based order, and Free-Fair Indo-Pacific, it is important for members to do a rational appraisal, of ensuring that the Indo-Pacific narrative remains relevant . especially in the context of two important events. First, the reset taking place between India-China, and second the thaw between Japan-China.

This has already resulted in some very interesting developments.

First, Australia was kept out of Malabar exercises in June (Japan, US and India will be participating).  Australia is a member of the Quad alliance, and has been one of the vocal protagonists of a Free and Fair Indo Pacific Narrative, and a greater role for India in the Indo-Pacific.  Australia has on more than one occasion, expressed its desire to participate in the Malabar Exercises.

Many argue, that the decision to exclude Australia from the exercises, is a consequence of the significant shift taking place in India-China relations. Though India has been dismissive of this argument,

Second, Japan has expressed its openness to participate in the (Belt and Road Initiative) BRI,  as long as international norms are met. During meetings between the Chinese and Japanese Foreign Ministers (Wang Yi, in April 2018, such a possibility was discussed. During Wang Yi’s meeting with Japanese PM, Shinzo Abe too this possibility was discussed. The Japanese PM who is seeking to improve ties with China, reiterated the potential of the Belt and Road Initiative in giving a boost to the regional economy.

It would be pertinent to point out, that a number of Japanese companies are already participating in countries which are part of the Belt and Road Initiative.

Interestingly,  Japanese led Asian Development Bank ADB which has been funding many projects (spearheaded by Japan) which have been projected as a component of the Indo-Pacific strategy has even gone to the extent of stating, that it does not perceive AIIB as a threat. Commenting on the possibility of cooperation between ADB and AIIB, President of ADB, Takehiko Nakao  stated:

“AIIB, it’s not the kind of threat to us. We can cooperate with AIIB because we need larger investment in Asia and we can collaborate.”

Where does Indo-Pacific go from here?

In terms of strategic issues, especially ensuring that China is not unfettered influence in the region, the narrative is relevant. The Chinese approach towards Indo-Pacific and Quad as being mere froth is an exaggeration. Addressing a press conference on the sidelines of the National People’s Congress, Chinese Foreign Minister, Wang Yi had stated, that there was:

‘no shortage of headline grabbing ideas” but they were “like the foam on the sea” that “gets attention but will soon dissipate”,

Similarly, in terms of promoting Democratic values it certainly makes sense. The real problem is in terms of connectivity projects (beyond India-Japan, none of the members of the Quad have elaborated a coherent vision for connectivity). The US has spoken about an Indo-Pacific Economic Corridor, but given the Trump Administration’s approach, it remains to be seen to what extent this can be taken further. While Australia has been steadfast in its opposition to China’s growing economic clout, it has its limitations, in terms of funding any concrete connectivity projects. Possible regions where Australia could play a key role should be identified. It has been argued, that Australia could play a key role in important infrastructural projects in the South Pacific.

Conclusion

It is fine to speak in terms of certain common values, but to assume that China can be the only glue, is a bit of a stretch, especially given the fact that it has strong economic ties with key countries pushing ahead the Indo-Pacific vision. It is also important, for the Indo-pacific to come up with a cohesive connectivity plan. Currently, the narrative seems to be driven excessively by strong bilateral relationships, and the individual vision of leaders. In the ever evolving geo-political and economic dynamics in Asia, with China re-examining its relations with both Japan and China, the key stakeholders in the Indo-Pacific region need to do some serious thinking.

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Infrastructure Drive, Strong Domestic Demand to Sustain Philippine Growth

MD Staff

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The Philippines’ economic growth is expected to sustain its quick pace in 2018 and 2019 as the government’s infrastructure program is rolled out, says a new Asian Development Bank (ADB) report.

In its new Asian Development Outlook (ADO) 2018, ADB projects Philippine gross domestic product (GDP) growth at 6.8% this year and 6.9% in 2019, up from 6.7% in 2017. Rising domestic demand, remittances, and employment, in addition to infrastructure spending, will drive growth. ADO is ADB’s flagship annual economic publication.

“Along with domestic demand, the government’s infrastructure investments will fuel the country’s growth in the next few years, supported by a sound economic policy setting,” said Kelly Bird, ADB Country Director for the Philippines. “We expect this growth to further lift wage employment numbers, add to household incomes, and benefit more poor families across the archipelago.”

The Philippines remained one of the strongest growing economies in Southeast Asia in 2017. Domestic investment recorded 9% growth last year, moderating from a brisk 23.7% in 2016, although growth in fixed investment in industrial machinery, transport equipment, and public construction remained robust. Household consumption grew by 5.8% in 2017, from 7% in 2016, on the back of higher remittances and employment, with the unemployment rate falling by 1.3 percentage points to 5.3% in January 2018 as 2.4 million jobs were added. Public spending rose by 7.3% last year from 8.4% in 2016.

Consumer price inflation reached 3.2% last year from 1.8% in 2016 due to strong economic growth, higher international fuel prices, and Philippine peso depreciation, but well within the 2% to 4% target by the Bangko Sentral ng Pilipinas—the country’s central bank. The country’s external debt further declined to 23.3% of GDP in 2017, from 24.5% of GDP in 2016.

Moving forward, ADB projects services will continue to drive GDP growth, along with manufacturing and construction industries. The approval of the Tax Reform for Acceleration and Inclusion law in December 2017 will augment tax revenues and provide additional fiscal space for more progressive public spending. The policy reforms are expected to yield additional 90 billion to 144 billion Philippine pesos ($1.73 billion to $2.76 billion) in tax revenue collection in 2018 and 2019, respectively.

With economic growth gaining momentum, inflation is projected to reach 4% in 2018 as global oil and food prices rise, and higher excise taxes on some commodities take effect. In 2019, meanwhile, inflation is expected to marginally decline to 3.9%.

The report notes there are external risks to the Philippines’ growth outlook from heightened volatility in international financial markets and uncertainty about global trade openness, although the country’s strong external payments position would cushion these effects.

A major policy challenge to the country’s growth outlook, according to the report, is managing the rollout of the government’s “Build, Build, Build” infrastructure program, which is expected to raise public infrastructure spending to 7.3% of GDP by 2022 from 4.5% in 2016. The report provides suggestions on ways to enhance government capacity, including strengthening coordination between government agencies and improving technical capacity of staff within these agencies, and fostering stronger partnerships between government agencies, the private sector, and development partners.

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