Friday, 15 March 2019

Industrial parks, indonesia is open for business

The advances that South East Asia have made demonstrate the progressive nature of this great region. It was from SE Asia where, what is termed a prehistoric civilizations dating back to 6000 BC, first developed the ability to organize agriculture, cultivated farming growing cereal. Prior to this point they were predominantly hunter-gatherers, going in search of their food source, their food came only from the wild. It took Japan until the J├Ámon period to adopt such techniques, circa 5000 BC. China came 1000 years later. You could even argue that through their achievements that SE Asia heralded in the Bronze Age. Tools much needed to sustain their advance culture.

Throughout Asia, you see evidence as to how the western societies have benefited from Asian innovation. Circa 3500 BC ancient cities emerged, wide streets, bathing platforms, drainage and reservoirs.  These were located in the Indus valley, now known as Pakistan.

Babylonians developed an alphabet which was adopted by the Greeks. Egypt relied on Babylon for trade, diplomacy the selling of cedar wood, olive oil and resins for mummification.

Asia has not emerged it has returned. Trading networks have functioned since the 8C BC, between Greece, Persia and India. India had established trading routes through South East Asia and China. China had at this time consolidated its power by possessing the Xia, Shang, and Zhou dynasties.  They had established trade routes to Southern Siberia bringing wealth to the nomadic peoples residing there.  China also, had routes to Bactria, trading freely. Bactria, an area north of the Hindu Kush, straddling parts of Afghanistan, Tajikistan, Pakistan and Uzbekistan. As a point of interest, it is thought that they were using single axle chariots 2000 years BC.

Greeks, by the 1ST Century BC had a vast maritime fleet.  One hundred and twenty ships per year sailed through the red sea, using monsoon winds in order to reach the ports of India. India through its own trade routes into SE Asia provided a staging post giving access to a wealth of spices, jade, beads etc.

Moving forward to today, it's fair to say that much of today's government policy comes from the many large family run corporations that have over years dominated the trade of this region. Asia is not short of family run conglomerates.  But, Indonesia’s government  are playing a key role in re-distributing wealth. Technology have opened the way for this process to start.

China's investment in sea routes East to West, their investment in the Suez Canal along with their influence over Israel. Israel have commissioned a rail network linking the Red sea with the Mediterranean sea forming an important part of the Belt and Road system. Indonesia is poised to benefit from this route looking to boost trade with Mediterranean countries.

Asian countries are increasingly looking to each other for their defence, sustainability, guidance and tolerance, they pull together. To some extent they have become immune to the western attempts at “globalization”, in 1998, the Asian crisis swept through the countries of SE Asia, they are mindful that it was an Asian contagion. In 2018, they see the west as still mired by the  financial collapse of 2008, yet Asian economies are enjoying bumper growth. A point of fact, all the major growth countries of 2018, they were from Asia.

Asian countries see the US as a facilitator of technology, innovation, but they no longer look to the US for their prosperity nor their defence. They see Trump's America as a wake up call, America can not be relied upon indeed, to do so would be a handicap. The US is now dispensable when it comes to Asia.

Indonesia is also advantaged with a vast population. The government have seen China's growth and have recognised, that China manufacturing is becoming uncompetitive. For instance China daily manufacturing salaries/pay is $30, Indonesia is still at $10.  Factories, Industrial, Science parks are emerging across this vast archipelago.

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