How Asia's Money Flows, Policy They Will Set

Where we are today is really not the place we have always been, by this I mean by reference to Asia's Century. Whilst this is Asia Century that there is no doubt, but it came about through a well oiled cycle. Asia initial growth was a direct result of Western funding, money or a better term investments flowed from the US and Europe directly into the two waves of growth that I refer in a previous mail.  Read here the third wave. 

It's right to say that the US and to some extent Europe kicked this process off in building Japan and Korea up from what were the ashes of the 2nd World War. To some extent the US and European funds continued to flow for the 2nd wave of growth which included Taiwan, Vietnam and later China. At this stage Japan and Korea along with the US and Europe invested their hard-earned savings building what we have today a China that will soon, if it hasn't already will take the number 1 slot for the largest economy. Without this global approach to investment I'm sure this region would have struggled. But of course this was not a one way street, as big corporations were able to leverage cheap labour as the emerging markets emerged.

Of the 3rd wave, this was heavily skewed in favour of investors from the now vibrant North and East Asia. Whilst of course East Asia were funding US and European debt through their purchase of treasuries. The economic cycle continues unabated. The dollar has secured stability and continued as the world's reserve currency. China and Japan are by far the largest holders of US treasuries holding approximately $1 Trillion each a phenomenal amount of debt. Add to this Hong Kong and Taiwan who each have $200 Billion of treasuries, then China conceivably sits on $1.4 Trillion. That's if you subscribe to the 1949 civil war split, which of course you have to as it happened. Chiang Kai-shek, of the Nationalist Party, met with Communist leader Mao Tse-tung in the south-western city of Chongqing, following which the nationalist fled china and established a beachhead across the Taiwan strait.  China have never recognized the break away province and Taiwan have not declared independence.  You could of course argue which belongs to which but to argue two separate countries would perhaps be nebulous, they are akin to North and South Vietnam.  As for US treasuries it's fair to say that 55% of US debt is held by Asian countries, this is all before you consider Asian investment funds in US equity, Japan alone have a further $1 Trillion invested. 

Note: Japan remains Asia’s largest net foreign creditor with more than $3.5 trillion in overseas assets, but with China’s annual surpluses of $1 trillion and foreign exchange reserves of $3 trillion, China is expected to catch up with Japan by 2020. Together, Japan and China hold nearly $7 trillion in foreign assets across foreign currency reserves, portfolio investment, and direct investment. In terms of total FDI stock, China’s nearly $1.4 trillion ranks just ahead of Japan.

As you can see when I refer to this Century as Asia's Century, I not only mean growth belongs to Asia the Century is owned by them lock, stock and barrel, just as the 20th was owned by the US and the 19th was the Brits.

The west should be concerned if they are not willing to seek out new markets. The UK is absorbed in chasing Brexit aligning themselves with an economy that has never been proven, for this will be a handicap as we move through the next few years. 

Asian countries are reducing their desire for Western debt and have chosen instead to invest in Asia, in themselves.  Monies from richer economies are flowing to the South to what is Asia's new factory base Indonesia. Indonesia a country of 260M people with an average factory floor salary one third of China. Indonesia is predicted, by PWC to be the worlds 5th largest economy by 2030. It will have one of the world's largest modern militaries. Indonesia will be a powerful force that will influence policy not just for Asia.  Ignore it if you wish, as one commentator to my blog has said we should ignore this region to reduce our carbon foot print. It's difficult to argue when the logic flows on that level, yet we send our North sea shell fish to Thailand... read that story if you dare it's scary.... read here

Thank you once again for taking the time to read my disjointed ramblings. Any comments you have would be greatly appreciated. Please do follow me.  I try to update on a daily basis. 

Thank you Nigel Saywell-Lee.

Where we are today is really not the place we have always been, by this I mean by reference to Asia's Century. Whilst this is Asia Century that there is no doubt, but it came about through a well oiled cycle. Asia initial growth was a direct result of Western funding, money or a better term investments flowed from the US and Europe directly into the two waves of growth that I refer in a previous mail.  Read here the third wave. 

It's right to say that the US and to some extent Europe kicked this process off in building Japan and Korea up from what were the ashes of the 2nd World War. To some extent the US and European funds continued to flow for the 2nd wave of growth which included Taiwan, Vietnam and later China. At this stage Japan and Korea along with the US and Europe invested their hard-earned savings building what we have today a China that will soon, if it hasn't already will take the number 1 slot for the largest economy. Without this global approach to investment I'm sure this region would have struggled. But of course this was not a one way street, as big corporations were able to leverage cheap labour as the emerging markets emerged.

Of the 3rd wave, this was heavily skewed in favour of investors from the now vibrant North and East Asia. Whilst of course East Asia were funding US and European debt through their purchase of treasuries. The economic cycle continues unabated. The dollar has secured stability and continued as the world's reserve currency. China and Japan are by far the largest holders of US treasuries holding approximately $1 Trillion each a phenomenal amount of debt. Add to this Hong Kong and Taiwan who each have $200 Billion of treasuries, then China conceivably sits on $1.4 Trillion. That's if you subscribe to the 1949 civil war split, which of course you have to as it happened. Chiang Kai-shek, of the Nationalist Party, met with Communist leader Mao Tse-tung in the south-western city of Chongqing, following which the nationalist fled china and established a beachhead across the Taiwan strait.  China have never recognized the break away province and Taiwan have not declared independence.  You could of course argue which belongs to which but to argue two separate countries would perhaps be nebulous, they are akin to North and South Vietnam.  As for US treasuries it's fair to say that 55% of US debt is held by Asian countries, this is all before you consider Asian investment funds in US equity, Japan alone have a further $1 Trillion invested. 

Note: Japan remains Asia’s largest net foreign creditor with more than $3.5 trillion in overseas assets, but with China’s annual surpluses of $1 trillion and foreign exchange reserves of $3 trillion, China is expected to catch up with Japan by 2020. Together, Japan and China hold nearly $7 trillion in foreign assets across foreign currency reserves, portfolio investment, and direct investment. In terms of total FDI stock, China’s nearly $1.4 trillion ranks just ahead of Japan.

As you can see when I refer to this Century as Asia's Century, I not only mean growth belongs to Asia the Century is owned by them lock, stock and barrel, just as the 20th was owned by the US and the 19th was the Brits.

The west should be concerned if they are not willing to seek out new markets. The UK is absorbed in chasing Brexit aligning themselves with an economy that has never been proven, for this will be a handicap as we move through the next few years. 

Asian countries are reducing their desire for Western debt and have chosen instead to invest in Asia, in themselves.  Monies from richer economies are flowing to the South to what is Asia's new factory base Indonesia. Indonesia a country of 260M people with an average factory floor salary one third of China. Indonesia is predicted, by PWC to be the worlds 5th largest economy by 2030. It will have one of the world's largest modern militaries. Indonesia will be a powerful force that will influence policy not just for Asia.  Ignore it if you wish, as one commentator to my blog has said we should ignore this region to reduce our carbon foot print. It's difficult to argue when the logic flows on that level, yet we send our North sea shell fish to Thailand... read that story if you dare it's scary.... read here

Thank you once again for taking the time to read my disjointed ramblings. Any comments you have would be greatly appreciated. Please do follow me.  I try to update on a daily basis. 

Thank you Nigel Saywell-Lee.

Indonesia's Millennials Driving The Economy

I think you'd like this story: "Asia And Its Return As An Economic Giant" by Nigelsaywell on Wattpad https://my.w.tt/9WOPdrVelU I think you'd like this story: "Asia And Its Return As An Economic Giant" by Nigelsaywell on Wattpad https://my.w.tt/9WOPdrVelU

Asia P.8. Asia's History Hasn't Ended It Has Returned

The Asian “supercomplex” has taken shape: this is evident within the cross-membership model to Asian intergovernmental organizations and through the appearance of political counterweights to China, particularly in India. The United States’ engagements in East and South Asia are also part of this supercomplex. The hardening of Beijing since 2008 has helped maintain US influence in Asia, despite Washington’s decline on the international stage.

Barry Buzan Professor of International Relations at the London School of Economics

There are copious books, white papers, government reports which have been written bestowing the virtues of doing business in Asia. What they seem to miss is the loss that companies will incur for not being represented in Asia. 

Asia consists of 5 billion people.

All to often we in the west are concerned by China and view Asia as China centric.  This is wrong. China is 1.5 billion people less than one third of Asia. Asia throughout history has influenced the west, their business practices, economies, and behaviours.  It's important to understand Asia stretches from Turkey in its West to China in the East with middle East termed middle Asia. It consists of many diverse civilizations which at times have engaged in conflict, but have always traded. 

When you consider America's period and the colonial period then you see just how short a window it was. History can be compartmentalized. 19C belonged to Europe as they colonized many parts of the globe, with the British leading the way, the British Empire. Following which, came the US era of dominance. But, as the US begins to wain we now look to Asia to emerge, and it’s not disappointing.

• It's important to understand Asia had a history of dominance. For almost two millennia they have established with one and another commercial ties which have stretched from the Caspian sea, Mediterranean to the Indus valley. From the fifteenth century Asia had diplomatic ties, economic infrastructure and an advanced cultural sensitivity in dealing with each other. 

A great example; the Buddhist Shwedagon temple situated in Myanmar (Burma) is just one testament of the cultural advance those regions have made, whilst we have languished in the ‘dark ages'. This temple has existed for more than two millennia. Its structure is immense standing 105M tall dominating the skyline of Yangon. This is just one example.

• China has a museum in Xian which portrays to the development of paper as a Chinese success. Some would argue it came from Egypt. For me I don't know which, but the silk road connected both. 

Asia growth has been re-born

Swedagon Temple over 2000 years

My point here is simple. Whilst the last two centuries played out Asia has been fragmented, too poor to participate or protect against the western dominance. They emerged fractured and to some extent cowed. All that has changed, Asia has again risen and will only gain strength throughout this century.  As Professor Kishore Mahbubani, a Singaporean academic and diplomat published a provocative collection of essays titled Can Asians Think? Understanding East and Western thinking and the disparities it produces. As I can attest to, as an advisor to some of the largest companies in Indonesia.  Meetings with Western equity partners were always interesting the west had few shades of gray with Americans operating primarily in black and white. Whereby Asians have so many shades of gray. I'll leave you to ponder the significance of that.

It's important to see China for what it is: The west is deeply suspicious of China, and they should be. The west through George W Bush’s incompetence and Barack Obama couldn't care attitude they have allowed China to dominate the narrative. However, China has spent in Asia some $50billion on infrastructure but it has still bought them little in the way of traction in the region.
  

China's, overheating economy, protectionist policies, aggressive crowding to push competitors out. They are pushing other regions to the front. None less than the young of Indonesia they have with others become a priority for Asia's economic well-being.   China represents to just one-third of Asia’s population, half of Asia’s GDP, half of its outward investment, and less than half of its inbound investment. Asia is much more than just China. 

The Belt and Road scheme has many participants, it is the most significant diplomatic project of the twenty-first century. It is equivalent to the founding of the United Nations, World Bank add the Marshall Plan, it is that big! The crucial difference to these, BRI was conceived in Asia, launched in Asia and will be led by Asians.  More on the BRI click here  More on BRI click here

Asia, in my opinion Indonesia is the growth area.more on Indonesia click here

The Asian “supercomplex” has taken shape: this is evident within the cross-membership model to Asian intergovernmental organizations and through the appearance of political counterweights to China, particularly in India. The United States’ engagements in East and South Asia are also part of this supercomplex. The hardening of Beijing since 2008 has helped maintain US influence in Asia, despite Washington’s decline on the international stage.

Barry Buzan Professor of International Relations at the London School of Economics

There are copious books, white papers, government reports which have been written bestowing the virtues of doing business in Asia. What they seem to miss is the loss that companies will incur for not being represented in Asia. 

Asia consists of 5 billion people.

All to often we in the west are concerned by China and view Asia as China centric.  This is wrong. China is 1.5 billion people less than one third of Asia. Asia throughout history has influenced the west, their business practices, economies, and behaviours.  It's important to understand Asia stretches from Turkey in its West to China in the East with middle East termed middle Asia. It consists of many diverse civilizations which at times have engaged in conflict, but have always traded. 

When you consider America's period and the colonial period then you see just how short a window it was. History can be compartmentalized. 19C belonged to Europe as they colonized many parts of the globe, with the British leading the way, the British Empire. Following which, came the US era of dominance. But, as the US begins to wain we now look to Asia to emerge, and it’s not disappointing.

• It's important to understand Asia had a history of dominance. For almost two millennia they have established with one and another commercial ties which have stretched from the Caspian sea, Mediterranean to the Indus valley. From the fifteenth century Asia had diplomatic ties, economic infrastructure and an advanced cultural sensitivity in dealing with each other. 

A great example; the Buddhist Shwedagon temple situated in Myanmar (Burma) is just one testament of the cultural advance those regions have made, whilst we have languished in the ‘dark ages'. This temple has existed for more than two millennia. Its structure is immense standing 105M tall dominating the skyline of Yangon. This is just one example.

• China has a museum in Xian which portrays to the development of paper as a Chinese success. Some would argue it came from Egypt. For me I don't know which, but the silk road connected both. 

Asia growth has been re-born

Swedagon Temple over 2000 years

My point here is simple. Whilst the last two centuries played out Asia has been fragmented, too poor to participate or protect against the western dominance. They emerged fractured and to some extent cowed. All that has changed, Asia has again risen and will only gain strength throughout this century.  As Professor Kishore Mahbubani, a Singaporean academic and diplomat published a provocative collection of essays titled Can Asians Think? Understanding East and Western thinking and the disparities it produces. As I can attest to, as an advisor to some of the largest companies in Indonesia.  Meetings with Western equity partners were always interesting the west had few shades of gray with Americans operating primarily in black and white. Whereby Asians have so many shades of gray. I'll leave you to ponder the significance of that.

It's important to see China for what it is: The west is deeply suspicious of China, and they should be. The west through George W Bush’s incompetence and Barack Obama couldn't care attitude they have allowed China to dominate the narrative. However, China has spent in Asia some $50billion on infrastructure but it has still bought them little in the way of traction in the region.
  

China's, overheating economy, protectionist policies, aggressive crowding to push competitors out. They are pushing other regions to the front. None less than the young of Indonesia they have with others become a priority for Asia's economic well-being.   China represents to just one-third of Asia’s population, half of Asia’s GDP, half of its outward investment, and less than half of its inbound investment. Asia is much more than just China. 

The Belt and Road scheme has many participants, it is the most significant diplomatic project of the twenty-first century. It is equivalent to the founding of the United Nations, World Bank add the Marshall Plan, it is that big! The crucial difference to these, BRI was conceived in Asia, launched in Asia and will be led by Asians.  More on the BRI click here  More on BRI click here

Asia, in my opinion Indonesia is the growth area.more on Indonesia click here

The EU Is No Longer Fit For Purpose - Hell, Recalling Ambassadors!?

Go to Hell

Oh, dear we seemed to have rattled the EU Lords and Masters. I suggest they put this deal to bed in a sensible way, before they implode. Italy and France are fractured, France is faced with industrial strife that will ensure they are relegated to the Southern league of countries. As the economies continue to splutter under the regulatory burden then France's ability to mask their non-compliance with regulations, that they produce will become more visible, fractures will deepen. What on earth France to recall its EU ambassador to Italy. 

The EU is not fit for purpose! Mrs May made clear, WTO rules In her Lancaster House speech are better than a ‘bad deal’. This was widely interpreted as meaning that the UK would be prepared to walk away from the negotiations if an agreement can not be reached. We will rely on WTO rules as a framework under which to conduct trade. This was supposed to strengthen the UK’s negotiating hand because it implied that if the EU did not play ball with the UK there was a perfectly acceptable fall-back position. Then came remainers, doom sayer's creating many synonyms: Crashing Out, Cliff Edge, Falling off a cliff, falling into the clutches of WTO etc. This of course suited their narrative. But it's wrong, its pure sensationalism to distort the facts. For a start the UK was a founding member of the WTO and still holds its seat at the table. 

Only Stupid People Call People Stupid

Such sound bites have in fact influenced the outcome, but not in a way the EU expected. On one hand the EU have taken comfort that the powers will prevent a no deal. Therefore, the EU offered the worst deal possible. Probably encourage by Blair in order that the people of Britain will see the folly of their way and overturn the vote. On the other hand, people have seen through this and reacted to being labelled as stupid little Englanders. The EU should of known, when we are backed into a corner we rarely emerge in a way the opposition expects. Has history taught these guys' nothing. 

WTO as a proposition is perfectly acceptable.

However, that didn't stop eminent vested parties expressing their fear of a no deal outcome. In October 2016, the heads of four industrial lobby groups, the CBI, the EEF, the ICC and techUK, published an open letter to the Prime Minister saying: …

“Every credible study that has been conducted has shown that this WTO option would do serious and lasting damage to the UK economy and those of our trading partners. The Government should give certainty to business by immediately ruling this option out under any circumstances”. 

Again project fear. At no time have they identified what these ‘credible studies’ were. It's as though they want to portray the WTO is some sort of monster organization that consumes its members — especially juicy new ones like the UK. As I said before it is our brainchild, and we have our place at the WTO table.

USA trades with the EU under WTO

US - EU trade under WTO

For the monster that it is the EU trades with 111 countries including China (and Hong Kong), India, Russia, Brazil, Indonesia, Singapore, and the United States they do this perfectly well under WTO. In fact, they do it better, since the formation of the Single Market in 1993, the growth rate of UK exports to these ‘WTO Only’ countries has been four times faster than the growth of UK exports to the EU. Meanwhile, over this same period, the growth rate of exports from the 14 top ‘WTO Only’ countries to the EU has been 27% higher than exports to the EU from the UK. 

If trading under WTO is so scary then let's just rename it to the ‘American Version’ — because America trades with the EU, including the UK, extremely well. In fact, as umpteen countries do. Suddenly it doesn’t sound so disastrous. Indeed, when you examine the facts about different trading relationships, as collated by the redoubtable Michael Burrage,19 ‘WTO Only’ (Micheal Burrage Senior Research Fellow at Civitas) does not sound unappealing at all. Trading on a ‘WTO Only’ basis rely on the rules of the WTO for their trading arrangements and to settle any disputes. The WTO rules dictate only the maximum tariffs that may be applied. It is perfectly possible for a member country to reduce these tariffs or, indeed, to abolish them altogether. 

It shows that ‘the WTO clutches’ are not at all clutch-like.

Go to Hell

Oh, dear we seemed to have rattled the EU Lords and Masters. I suggest they put this deal to bed in a sensible way, before they implode. Italy and France are fractured, France is faced with industrial strife that will ensure they are relegated to the Southern league of countries. As the economies continue to splutter under the regulatory burden then France's ability to mask their non-compliance with regulations, that they produce will become more visible, fractures will deepen. What on earth France to recall its EU ambassador to Italy. 

The EU is not fit for purpose! Mrs May made clear, WTO rules In her Lancaster House speech are better than a ‘bad deal’. This was widely interpreted as meaning that the UK would be prepared to walk away from the negotiations if an agreement can not be reached. We will rely on WTO rules as a framework under which to conduct trade. This was supposed to strengthen the UK’s negotiating hand because it implied that if the EU did not play ball with the UK there was a perfectly acceptable fall-back position. Then came remainers, doom sayer's creating many synonyms: Crashing Out, Cliff Edge, Falling off a cliff, falling into the clutches of WTO etc. This of course suited their narrative. But it's wrong, its pure sensationalism to distort the facts. For a start the UK was a founding member of the WTO and still holds its seat at the table. 

Only Stupid People Call People Stupid

Such sound bites have in fact influenced the outcome, but not in a way the EU expected. On one hand the EU have taken comfort that the powers will prevent a no deal. Therefore, the EU offered the worst deal possible. Probably encourage by Blair in order that the people of Britain will see the folly of their way and overturn the vote. On the other hand, people have seen through this and reacted to being labelled as stupid little Englanders. The EU should of known, when we are backed into a corner we rarely emerge in a way the opposition expects. Has history taught these guys' nothing. 

WTO as a proposition is perfectly acceptable.

However, that didn't stop eminent vested parties expressing their fear of a no deal outcome. In October 2016, the heads of four industrial lobby groups, the CBI, the EEF, the ICC and techUK, published an open letter to the Prime Minister saying: …

“Every credible study that has been conducted has shown that this WTO option would do serious and lasting damage to the UK economy and those of our trading partners. The Government should give certainty to business by immediately ruling this option out under any circumstances”. 

Again project fear. At no time have they identified what these ‘credible studies’ were. It's as though they want to portray the WTO is some sort of monster organization that consumes its members — especially juicy new ones like the UK. As I said before it is our brainchild, and we have our place at the WTO table.

USA trades with the EU under WTO

US - EU trade under WTO

For the monster that it is the EU trades with 111 countries including China (and Hong Kong), India, Russia, Brazil, Indonesia, Singapore, and the United States they do this perfectly well under WTO. In fact, they do it better, since the formation of the Single Market in 1993, the growth rate of UK exports to these ‘WTO Only’ countries has been four times faster than the growth of UK exports to the EU. Meanwhile, over this same period, the growth rate of exports from the 14 top ‘WTO Only’ countries to the EU has been 27% higher than exports to the EU from the UK. 

If trading under WTO is so scary then let's just rename it to the ‘American Version’ — because America trades with the EU, including the UK, extremely well. In fact, as umpteen countries do. Suddenly it doesn’t sound so disastrous. Indeed, when you examine the facts about different trading relationships, as collated by the redoubtable Michael Burrage,19 ‘WTO Only’ (Micheal Burrage Senior Research Fellow at Civitas) does not sound unappealing at all. Trading on a ‘WTO Only’ basis rely on the rules of the WTO for their trading arrangements and to settle any disputes. The WTO rules dictate only the maximum tariffs that may be applied. It is perfectly possible for a member country to reduce these tariffs or, indeed, to abolish them altogether. 

It shows that ‘the WTO clutches’ are not at all clutch-like.

Indonesia P.6 A Country Planning Its Capital City Move

Yesterday I spoke about a new airport, in fact 10 new airports. However, I singled one airport in particular, Tjilik Riwut. This airport is significant as it will most likely become the hub for the new capital city. For many years it has been a plan to move the government from Jakarta to potentially Kalimantan. This was considered back in the 60s during the reign of Sukarno, prior to Suharto. In fact, it has been a dream since the 40s, first considered at the time of their independence.

There is a pressing reason in which to do this, Jakarta is sinking. Over the last 10years Jakarta has sunk 2.5Metres with almost half the city now below sea level. The ground is absorbing the city. Some areas to the North are losing 25 cm per year. Worldwide many megacities close to coastal regions have a similar problem but Jakarta's problem is double the global average.

Kalimantan or to use its old designation Borneo is a perfect location for a new capital city. Again another example of the dynamic nature of this country.

The beneficiaries will of course be the infrastructure providers. Power,  Water purification, "Telecommunications network", roads, rail, bridges, ports, distribution, Cement manufacturers etc. The new airport terminal at a cost of $100sM whilst sizable is only a small part of the overall activity.

Jakarta is home to over 10M people and if this absorption continues unchecked then by 2050 most of the city will be underwater. It's predicted 95% of North Jakarta will have disappeared. The East and the West are not immune as they are sinking yearly at a rate of 15 cm and 10 cm respectively. Jakarta sits on swampy land with 13 major rivers passing through, whilst also having the Java sea lapping at its door.

Of course, significant work is required to prevent this city disappearing. Dykes, drainage, underpinning etc.  Overall in this vast archipelago we are still just touching the surface for the overall development taking place, this country marches forward to become the 5th largest economy.

Indonesia is located on what is known affectionately as the ring of fire, although there is nothing pleasant about it, situated on the World's major tectonic plates. Kalimantan is as far as you can be from these plates with earthquakes and Volcanic activity risk minimized.

Indonesia, for sure is ideal location to be established. Be aware the Chinese has targeted Indonesia with Indonesia signing up to the Chinese initiative known as the belt and road network.

Yesterday I spoke about a new airport, in fact 10 new airports. However, I singled one airport in particular, Tjilik Riwut. This airport is significant as it will most likely become the hub for the new capital city. For many years it has been a plan to move the government from Jakarta to potentially Kalimantan. This was considered back in the 60s during the reign of Sukarno, prior to Suharto. In fact, it has been a dream since the 40s, first considered at the time of their independence.

There is a pressing reason in which to do this, Jakarta is sinking. Over the last 10years Jakarta has sunk 2.5Metres with almost half the city now below sea level. The ground is absorbing the city. Some areas to the North are losing 25 cm per year. Worldwide many megacities close to coastal regions have a similar problem but Jakarta's problem is double the global average.

Kalimantan or to use its old designation Borneo is a perfect location for a new capital city. Again another example of the dynamic nature of this country.

The beneficiaries will of course be the infrastructure providers. Power,  Water purification, "Telecommunications network", roads, rail, bridges, ports, distribution, Cement manufacturers etc. The new airport terminal at a cost of $100sM whilst sizable is only a small part of the overall activity.

Jakarta is home to over 10M people and if this absorption continues unchecked then by 2050 most of the city will be underwater. It's predicted 95% of North Jakarta will have disappeared. The East and the West are not immune as they are sinking yearly at a rate of 15 cm and 10 cm respectively. Jakarta sits on swampy land with 13 major rivers passing through, whilst also having the Java sea lapping at its door.

Of course, significant work is required to prevent this city disappearing. Dykes, drainage, underpinning etc.  Overall in this vast archipelago we are still just touching the surface for the overall development taking place, this country marches forward to become the 5th largest economy.

Indonesia is located on what is known affectionately as the ring of fire, although there is nothing pleasant about it, situated on the World's major tectonic plates. Kalimantan is as far as you can be from these plates with earthquakes and Volcanic activity risk minimized.

Indonesia, for sure is ideal location to be established. Be aware the Chinese has targeted Indonesia with Indonesia signing up to the Chinese initiative known as the belt and road network.

Indonesia P.5. Infrastructure Projects New Airports

Ten New Airports.

Indonesia culturally is diverse, it spreads across 13,500 islands some of which are substantial. It may be known, due to recent publicity around the disasters such as the Sulawesi earthquake and subsequent Tsunami which devastated the towns of Palu and Donggala as well as the Lombok quake, that Indonesia lies on what they call the ring of fire. It has 63 active volcanoes and straddles many tectonic plates. I bring this up because this archipelago has seen this type of activity for millions of years since time began. The human cost in this has been really quite terrible.

However, as a result of this activity Indonesia is blessed with significant mineral wealth and natural attractions. Rolling hills, distant volcanoes and ample valleys of terraced rice paddies, all making for a simply stunning tropical backdrop.

As a result more and more travellers are looking to explore the outer reaches of this stunning set of Islands. The government recognizing this has started a program to build 10 new airports. Some of these airports will be in: Lampung, Central Sulawesi, Southeast Sulawesi, East Nusa Tenggara, Central Kalimantan, Bangka Belitung and North Sumatra. These airports will bring life to the areas that surround them. Already resort cities are in construction.

Tjilik Riwut Airport Central Kalimantan

One such airport the central government is targeting the construction of a new terminal for Tjilik Riwut Kalimantan. The new terminal is expected to be completed in early 2019. This was recently stated by the Head of the Central Kalimantan Regional Development Planning, Research and Development Agency, Yuren S. Bahat. The central government are inviting investors to participate in these projects and will even consider full private ownership. Of course the management will still come under the control of the central government, for security reasons. Regardless of your companies aspirations it's important to note that these areas will indeed come to life as the facilities come on stream. Needless to say the economic activity in each of these primarily virgin grounds will increase a hundred fold. You only have to look to the tourism numbers hitting Bali. Tourists from China and India are coming to Indonesia in vast numbers. 

Indonesia has so much beauty and diversity it's difficult to quantify it in a short blog of this type. I will attempt to do that in future blogs. But, my emphasis will always be on assisting companies to be aware of the untapped potential this market holds.

Can you afford to miss Indonesia!

Ten New Airports.

Indonesia culturally is diverse, it spreads across 13,500 islands some of which are substantial. It may be known, due to recent publicity around the disasters such as the Sulawesi earthquake and subsequent Tsunami which devastated the towns of Palu and Donggala as well as the Lombok quake, that Indonesia lies on what they call the ring of fire. It has 63 active volcanoes and straddles many tectonic plates. I bring this up because this archipelago has seen this type of activity for millions of years since time began. The human cost in this has been really quite terrible.

However, as a result of this activity Indonesia is blessed with significant mineral wealth and natural attractions. Rolling hills, distant volcanoes and ample valleys of terraced rice paddies, all making for a simply stunning tropical backdrop.

As a result more and more travellers are looking to explore the outer reaches of this stunning set of Islands. The government recognizing this has started a program to build 10 new airports. Some of these airports will be in: Lampung, Central Sulawesi, Southeast Sulawesi, East Nusa Tenggara, Central Kalimantan, Bangka Belitung and North Sumatra. These airports will bring life to the areas that surround them. Already resort cities are in construction.

Tjilik Riwut Airport Central Kalimantan

One such airport the central government is targeting the construction of a new terminal for Tjilik Riwut Kalimantan. The new terminal is expected to be completed in early 2019. This was recently stated by the Head of the Central Kalimantan Regional Development Planning, Research and Development Agency, Yuren S. Bahat. The central government are inviting investors to participate in these projects and will even consider full private ownership. Of course the management will still come under the control of the central government, for security reasons. Regardless of your companies aspirations it's important to note that these areas will indeed come to life as the facilities come on stream. Needless to say the economic activity in each of these primarily virgin grounds will increase a hundred fold. You only have to look to the tourism numbers hitting Bali. Tourists from China and India are coming to Indonesia in vast numbers. 

Indonesia has so much beauty and diversity it's difficult to quantify it in a short blog of this type. I will attempt to do that in future blogs. But, my emphasis will always be on assisting companies to be aware of the untapped potential this market holds.

Can you afford to miss Indonesia!

Indonesia P.3 - Can You Afford To Miss This Country's Growth.

INDONESIA'S CHEQUERED PAST A BRIGHT FUTURE HAS EMERGED.

I guess I am somewhat of an Indophile. I state that up front as I have been commercially involved with Indonesia since the early 90s. Having been through some amazing times during that period. Most notable was the fall of Suharto or technically his resignation in 1998.

The next most significant point was the currency crisis that swept across Asia, mid 1997. With Indonesia suffering significantly as its currency devalued overnight. Leaving many companies that had $ debt in a very difficult position all together. 

Two companies in particular were evenly balanced each vying for dominance in their market. One had a US partner the other the local telephone operator. I'm talking of course of XL and Telkomsel. XL had Nynex as it's partner at that time and were reliant on many foreign $ dominated suppliers and loans etc. The result is for all to see Telkomsel motored forward as their debt was limited whilst XL lagged behind becoming the poor 2nd mobile operator in the Indonesian market. Needless to say Nynex or Verizon as it became divested their part and exited the Indonesian market.

INDONESIA THE WAY AHEAD.

However, much has changed since those heady days some 20 years ago. With the Suharto era well and truly behind in the politics of Indonesia. It is the politics of today which are to be revered in this dynamic growing country.

Indeed, on that point there is a sophistication which has emerged that many countries look to when considering best in class. An example; Hillary Clinton during the US election campaign was asked which leader does she aspire to be like. The answer that followed was she would like to emulate/ aspiring to be like Joko Widodo, affectionately known as Jokowi. Jokowi for sure is a man of the people not afraid to walk amongst all walks of life. He has together with his team of remarkable ministers had a crack down on Corruption which has been an amazing success. His Finance Minister is Dr Sri Mulyani Indrawati a senior past Economist at the World Bank, who as I understand has been tipped to head the World Bank should she wish to return. I believe her intentions are clear that she will continue the work that she has started here in Indonesia.

Staying with Dr Sri Mulyani for a moment. Last year Dr Sri received the “Best Minister award” at the World Government Summit held in Dubai. Recipients are evaluated independently by Ernst and Young.

There are approx 1500 World Bank major projects, roads, rail, ports (air and sea), communications, water purification, fisheries, farming etc these are underway in this vast archipelago bringing life to remote regions.

This is a substantial sized country of 260M people. One that you can not afford to avoid. PWC have predicted Indonesia will be the 5th biggest economy worldwide. From my perspective they will be a stable democracy and one of the easiest in which to focus.

INDONESIA'S CHEQUERED PAST A BRIGHT FUTURE HAS EMERGED.

I guess I am somewhat of an Indophile. I state that up front as I have been commercially involved with Indonesia since the early 90s. Having been through some amazing times during that period. Most notable was the fall of Suharto or technically his resignation in 1998.

The next most significant point was the currency crisis that swept across Asia, mid 1997. With Indonesia suffering significantly as its currency devalued overnight. Leaving many companies that had $ debt in a very difficult position all together. 

Two companies in particular were evenly balanced each vying for dominance in their market. One had a US partner the other the local telephone operator. I'm talking of course of XL and Telkomsel. XL had Nynex as it's partner at that time and were reliant on many foreign $ dominated suppliers and loans etc. The result is for all to see Telkomsel motored forward as their debt was limited whilst XL lagged behind becoming the poor 2nd mobile operator in the Indonesian market. Needless to say Nynex or Verizon as it became divested their part and exited the Indonesian market.

INDONESIA THE WAY AHEAD.

However, much has changed since those heady days some 20 years ago. With the Suharto era well and truly behind in the politics of Indonesia. It is the politics of today which are to be revered in this dynamic growing country.

Indeed, on that point there is a sophistication which has emerged that many countries look to when considering best in class. An example; Hillary Clinton during the US election campaign was asked which leader does she aspire to be like. The answer that followed was she would like to emulate/ aspiring to be like Joko Widodo, affectionately known as Jokowi. Jokowi for sure is a man of the people not afraid to walk amongst all walks of life. He has together with his team of remarkable ministers had a crack down on Corruption which has been an amazing success. His Finance Minister is Dr Sri Mulyani Indrawati a senior past Economist at the World Bank, who as I understand has been tipped to head the World Bank should she wish to return. I believe her intentions are clear that she will continue the work that she has started here in Indonesia.

Staying with Dr Sri Mulyani for a moment. Last year Dr Sri received the “Best Minister award” at the World Government Summit held in Dubai. Recipients are evaluated independently by Ernst and Young.

There are approx 1500 World Bank major projects, roads, rail, ports (air and sea), communications, water purification, fisheries, farming etc these are underway in this vast archipelago bringing life to remote regions.

This is a substantial sized country of 260M people. One that you can not afford to avoid. PWC have predicted Indonesia will be the 5th biggest economy worldwide. From my perspective they will be a stable democracy and one of the easiest in which to focus.