The Jokowi government has announced stricter measures and a budget to cushion the economic impact of the COVID-19 pandemic, but must tackle more fundamental challenges, says Dr Siwage Dharma Negara.

Indonesian President Joko “Jokowi” Widodo declared the COVID-19 outbreak a public health emergency on Mar 31.

He also announced new regulation which allows regional governments and city authorities to restrict people’s movements and close non-essential services.

This allows cities and provinces in Indonesia to implement stringent large-scale social distancing measures within the community.

However, since the government stopped short of calling for a lockdown, people were still free to go about their daily activities outside of their homes.

NOT A COMPLETE LOCKDOWN

Even as he said that the Indonesian government is studying the possibility of a complete lockdown in Indonesia, Jokowi has thus far resisted this option, citing concerns about the serious sThe central government has anticipated that sudden measures to shut down the country will induce bigger financial and economic risks.

The government also recognises that it is difficult to implement a lockdown in a society like Indonesia, which has a huge informal sector. Out of the 126.5 million labour workforce in the country, 56 per cent, equating to 71 million people, work in the informal sector doing jobs such as babysitting, operating street carts and as informal carpark attendants, according to the Indonesian Central Statistics Agency.

Many Indonesians cannot afford to stay at home as their lives depend on securing a daily income. However, as the numbers of infections and fatalities have rapidly increased, the government has been forced to impose stricter movement controls.

As of Apr 7, Indonesia reported 2,491 confirmed COVID-19 cases with 209 deaths.

Despite the measures announced on Mar 31, experts have said that the regulation should have come sooner, as growing numbers of people have begun to leave Jakarta – the epicentre of COVID-19 for Indonesia – to other cities and their hometowns in search of work opportunities, as the country takes an economic hit.

Over 30,000 workers in the capital have been laid off since March, the Jakarta Manpower, Transmigration and Energy Agency said on Apr 4, with more than 132,000 placed on unpaid leave.

Indonesian Transport Minister Budi Karya Sumadi additionally reported that around 14,000 people from the greater Jakarta area have travelled to West Java, Central Java, Yogyakarta, and East Java in the week leading up to the announcement, ignoring the government’s appeal for them not to return home and increasing the risk of epidemic spread to their hometowns.

ADDRESSING THE ECONOMIC IMPACT OF COVID-19

Concerns over the economic fall-out of more onerous restrictions like a lockdown have shaped Indonesia’s response to the coronavirus.

Finance Minister Sri Mulyani Indrawati revealed that the country’s economic growth could slow to 2.3 per cent this year, compared to the 5.7 per cent earlier projected on Apr 1. She added that a worst-case scenario could see the economy shrink by 0.4 per cent.

Unsurprisingly then, Jokowi also announced on the same day he rolled out regulations on stricter movement restrictions that the Indonesian government will take decisive measures to cushion the impact of COVID-19.

This includes announced a 110 trillion rupiah (US$6.6 billion) safety net for those hardest hit by the virus, including help for some 10 million families through the Program Keluarga Harapan (Family Hope Programme or PKH) – a cash transfer programme – as well as reaching out to 15.2 million families through the staple food programme to enable them to get their basic food supplies.

To help the estimated 5.6 million informal workers, laid-off employees, and people who work in small-micro businesses affected by COVID-19, the government will double the pre-employment card programme budget to 20 trillion rupiah to support job seekers for up to six months to develop new skills.

The government will also provide free electricity for 24 million low-income households and  a 50 per cent tariff discount for 7 million middle-income households for the next three months.

Overall, the Indonesian government has budgeted an additional 405 trillion rupiah, which is about 16 per cent of the total national budget for 2020, and has scrapped the 5 per cent budget deficit cap.

While one-quarter of the budget has been allocated for financing various social protection schemes as above, an additional fund of 75 trillion rupiah has been set aside for healthcare.

About 70 trillion rupiah has been ring-fenced to support SMEs and small-scale credit holders. The government has also set up a 25 trillion rupiah contingency fund in anticipation of an increase in demand for basic staples.

CHALLENGES IN MANAGING FALL-OUT

Looking ahead, there are at least three big challenges facing Indonesia in managing the fall-out from COVID-19.

First, there are concerns over whether these social safety programmes can be implemented effectively.

For one, it needs to be able to identify who the intended beneficiaries are, but the data is incomplete.

Collecting information on the most affected groups, such as petty traders, manual factory workers, construction workers, cleaning service, daily workers, and ride-hailing drivers remains a huge challenge where there are no formal employment records and many do multiple jobs.

Another issue is how the government can distribute this social assistance to those affected, particularly the unbanked, who will rely on cash transfers for aid. Many of them do not have a registered bank account or a fixed address. According to the Indonesia Financial Service Authority, 51 per cent of the adult population in Indonesia does not have a bank account.

Second, public policy implementation and the delivery of government services has been complicated by Indonesia’s decentralised governance system post Reformasi, after substantial autonomy and resources were granted to regional, even district-level authorities, with coordination between the central government and local governments and among local governments, a constant work-in-progress.

Although Jokowi has asked the regional heads to coordinate their policies with regard to the restrictions on movements during this COVID-19 outbreak with the central and other local governments, they have not all complied with this request.

Several regions, such as Tegal in Central Java and Tasikmalaya in West Java, have unilaterally initiated lockdowns of their respective towns from Mar 30 until Jul 31 without consulting the central government, for instance.

Third, state and regional institutions lack the capacity to roll out programmes effectively. Governance and monitoring with regard to social-assistance programmes remain weak.

In a 2017 study of Indonesia’s social assistance system, the World Bank identified capacity issues as a key challenge facing PKH. It recommended strengthening implementation capacity, revamping information technology systems, improving human resources management and ensuring adequate training of facilitators, and expanding the family development sessions to reach all PKH families.

There have also been instances in the past where the PKH has succumbed to corrupt practices. For example, in Makassar – the capital city of South Sulawesi – last year, funds for the PKH scheme were found to be misappropriated by supervising personnel.

On a positive note, COVID-19 seems to have sparked ground-up efforts by various communities to promote social solidarity and help the poor and the vulnerable groups.  The national Indonesian COVID-19 special task force reported receiving financial contributions of around 80 billion rupiah from the public to support government assistance programmes as of Mar 31.

While such public support will complement the government’s efforts to cushion the economic impact of COVID-19 on vulnerable groups, ultimately Indonesia needs to beat the pandemic itself.

Doing so will require more decisive public healthcare measures, including the political will to get all stakeholders to coordinate a country-wide lockdown. Anything less could be detrimental to Indonesia.

Source: https://www.channelnewsasia.com/news/commentary/is-indonesia-doing-enough-to-fight-covid-19-12614440

If you are looking for adventure, then you will be thrilled to hear about a long-established tour operator with over thirty years of experience who will get your heart racing and maybe even your teeth chattering!

Mason Adventures is a family-run business in Bali that offers world-class facilities and services. They own and operate all their tours, ensuring that every aspect of your experience adheres to strict safety and ethical standards with a money-back guarantee that promises a ´complete premium experience` that goes beyond anything you would expect. And because they provide everything themselves, they ensure a unique, value for money experience. The paradise island of Bali is an adventure in itself but Mason Adventures provides Bali as a backdrop to some of the most unforgettable experiences you could hope to have.

Corporate activities and team building events are creatively catered for. If you are looking for something in particular to suit your company’s needs, then Mason Adventures offers bespoke packages that can cater for anything up to 2000 people.

White water rafting, jungle buggies, mountain cycling, and tropical trekking are for those who dare to be different. Accommodating for a range of abilities from the first-time adventurers to the more daring, Mason Adventures is Bali’s safest adventure company, so you’ll have nothing to fear except fear itself!

The white water rafting experience takes you along a 12km stretch of the exciting and scenic Ayung River from where you will truly experience the beauty of the island in the quieter moments of your river rafting trip before hitting the white waters that require all of your attention.

Ramp up the revs on hair-bend twists and turns over five kilometres of track, etched out through the jungle. A challenging course is what is thrown at you when you opt for the jungle buggy experience. With the option of a single or double-seated buggy, team building has never before required such nerves of steel and quick response. An ideal activity to build transferrable qualities into your workforce.

Then there are the helicopter tours. Bali is a stunning island and nowhere else can that be most appreciated than from the skies. Exhilarating and mesmerising, there are a number of tours, one of which includes a flight over the Mt. Batur volcano.

If you prefer your adventures on terra firma then trekking or cycling through the jungle might be a challenge you’d like to face. Designed for every skill level, the tours can push you to your limit if that’s what you want. But they also allow you to encounter the culture and custom of Balinese locals as you traverse through a jungle landscape enriched with the goings-on of village life, rustic rice fields, and dramatic landscapes. You’ll learn first-hand about others as well as yourself.

Also, on offer are the wellness spa and the chocolate experience. These can be arranged as stand-alone events or within a package because even the most die-hard adrenaline junkies need some down-time and chocolate!

Bali’s biggest attraction is the elephant sanctuary where these gentle giants have been rescued and cared for in the Mason family’s very own elephant park. They are flourishing now, and baby elephants have been born and reared on the site. You can wash, bathe and ride bareback in the elephants’ bathing lake as well as safari under the stars spending an evening with these amazing beings in an ethically sustained, award-winning setting within the atmospheric hinterlands of Ubud. It’s just another one of the value for money experiences for adrenaline junkies with a conscience.

As you venture from the comfort of the office, you’ll not just step out of your comfort zone but stride out. Mason Adventures provides your workforce with an experience that will forge team building qualities that will test their mettle and raise their game.

The saying goes that a journey begins with a single step, but some journeys begin with a single leap and lead to a lifetime of performance and memories…

Artificial intelligence and automation are firmly in the sights of Indonesia’s government and corporate sector. Automation is currently the largest economy in Southeast Asia and by 2030 it is estimated that 23 million jobs will be lost by this modern way of doing business in Indonesia. But it’s not a future that is heading into a black hole of unemployment. The change is set to create a staggering 27 to 46 million new jobs within the coming decade. 10 million of these jobs will be in fields that don’t even exist yet in Indonesia.

So a new era is on the horizon, but one that has to be prepared for and transitioned carefully. It is infrastructure and technology-driven. Education and training are the sparks that will enlighten this new era to usher in a new workforce of skilled, reskilled and upskilled men and women to work in harmony with mankind’s latest advancements.

As a result, Indonesia’s government is pouring funding into polytechnic institutions in an effort to increase the number of skilled workers in the country and the Asian Development Bank (ADB) is supporting the initiative. The government has estimated that they will need 113 million skilled workers by 2030 in order to achieve economic growth in priority sectors. The skilled workforce currently stands at 55 million out of the 128 million employed.

So the future is bright for investment opportunities for overseas companies. Automation will see an increase in technology spending, infrastructure development, economic growth, income and consumption, which is good news for entrepreneurs and businesses fortunate enough to be based in the country.

Doing business in Jakarta, the business hub of Indonesia, is an exciting prospect but one that requires careful and patient planning for foreign investors because of the amount of bureaucracy that is involved. It is getting easier but it still attracts only the most committed. Not a bad thing as it reduces the competition and increases the odds of establishing a firm footing in this business-driven capital that allows access to Indonesia’s optimistic and increasingly middle-class population.

There are two ways into Jakarta. One with a permit as a Foreign Investment Limited Liability Company and the second with a permit for a representative office only. If your aim is only to explore business opportunities via market research, networking, and local representation, then the representative office is the route to take. Direct engagement in sales, and generating profit and revenue are strictly off-limits but there are no capital requirements and it is a more speedy process. A work permit is required for the chief representative and unlimited business visa sponsorships are allowed. There is also a requirement of hiring three Indonesians for every expat hired. It’s a good way to start out before committing to a commercial venture.

Foreign companies that want to engage in commercial activities within Indonesia need to set up as a foreign investment company and as such there are certain restrictions and conditions. Only certain sectors are open to foreign investors so it’s important to check out the details on the Negative Investment List. There are various boards and agencies that should be consulted to make sure you are adhering to all the requirements.  The appeal of Jakarta is increasing year on year and help and advice is on hand from sources such as the Indonesian Investment Coordination Board who are aware of all the current requirements.

So what is it like living and working in Jakarta? It’s a bustling, busy and loud city with cutting edge malls, bars and restaurants. From the famous flea market to the Presidential Palace, it has a rich history, steeped in Dutch colonialism which ended in 1879. The Kota Tua area of Jakarta, also known as Old Town Batavia is the cultural heart of the city with beautiful architecture and a cobbled square. Museums, parks, a beachfront and more, make Jakarta an attractive place to work.

There is a growing expat community who are finding that Jakarta offers reasonably priced housing and a reasonable cost of living. It rates highly for leisure activities and one of the aspects expats value most is the welcome they get. It is the people of Jakarta that make the biggest impression. Indonesians are a cheerful and welcoming people but with a cultural etiquette it would be advantageous to learn if you are planning to do business in Jakarta.

Like anything in life that might not always be easy, it could end up being well worth the effort!

Looking at a map of South East Asia you will find a plethora of 4 and 5-star hotels that are lobbying for your business. Location is where it starts. A central location makes for convenience. Less time and expense travelling to and from business meetings and the ability to step out of your hotel door and feel the city vibe around you is a good start when looking for the right hotel.

But with so many hotels competing for the business traveller what are the incentives they offer to entice you in through their doors?  We’ll open those doors for you to give you a glimpse into the world of Business Travel Programmes offered by 4 and 5-star hotels so that you’re packed with the information that’s going to help you bag the most out of your host.

First, let’s take a look at what incentives they have for your company.

Corporate Rates                                                                                                                                   

If you want rate-certainty and have a large enough budget then great rates can be negotiated for all of your company’s travellers. Discounted room prices and added extras such as free WiFi or parking are what you will be getting for all of your employees.                                                                                                                                                              

Dynamic Pricing                                                                                                                     

More and more hotels are now offering you the option of dynamic pricing. If you know your pattern of spending and volume of traffic then this might be the programme for you. It’s a corporate-specific discount that is applied to the hotel’s best available rates. This is particularly useful if you know that your company has a lot of off-peak travel arrangements which are generally cheaper anyway and so you might not be making savings with the usual corporate rates that are discounted according to peak time prices.

TMC Rates

If you are a company with a smaller accommodation spend, then hotels are still offering you incentives too. Through Travel Management Companies you can get discounted rates on rooms and other extras. The TMC can negotiate rates that you as a smaller business won’t be able to leverage for yourself.

Not solely about savings for the company, effective Business Travel Programmes are now about experiences too. They ensure individuals within the company’s travel scheme will see the advantages of booking the hotels in the programme.

So what incentives for you, the business traveller:

• The best hotels will make it easy for you by sending you relevant information before you arrive. Mobile check-in and keyless room entry will be a couple of reasons you’ll be knocking at their door. And if they really know how to handle their guests, they will offer you a free meal and/or drink voucher on arrival.
• Hoteliers will want to connect in other ways too. Your technology with their sockets and portals are going to make a match made in business heaven if there’s enough of them in your room. You want a room that is equipped with everything the business traveller needs and that includes fast WiFi, appropriate lighting and suitable furniture too. Not to mention courtesy toiletries and ironing facilities to help you look crisp and ready for business.
• It goes without saying that efficiency is a powerful incentive when it comes to business travellers. Being smart, hotels will have created a mobile website that makes you city-smart. Maps, click-to-call phone numbers, recommended places to visit, eat, etc. are in-roads into making your business trip cruise along smoothly rather than a scramble to get from A to B.
• Cross-promotions are a service that great hotels can provide to save you time and money. Booking your stay with hotels that have cross-promotions with car rental companies, airport pick up services, local restaurants and attractions means good business for them and for you.
• With today’s health-focused lifestyle you don’t want to let your guard down and your waist-line grow while you are away from home, so the best 4 and 5 star hotels offer healthy options on their menu and a gym and/or pool to maintain fitness and well-being.
• Some Business Travel Programmes allow you to use corporate rates or corporate benefits for personal travel too. Others will share benefits such as status match or increased loyalty points to you as an individual.
• 4 and 5-star hotels are upping their game and providing stunning executive lounges to entice you through their doors. Designed to be a home from home where you can enjoy a buffet breakfast and dine on snacks and beverages all day, the best hotels go that little bit further and kit out their lounges in luxurious furniture for dining, working and relaxing. They often offer spectacular views of the city to give you that top of the world feeling while you do business. Boardroom use is also on the agenda in many of the top-class hotels. Comfort areas with plush settees and armchairs and large screen TVs ensure its not all work for you.

Just a Little Bit Longer…

Increasingly it’s becoming common practice to mix business with pleasure. Or rather pleasure with business. Extended stays of a couple of days before or after your business trip to include leisure activities are an increasing trend. It has given birth to a new term in the business world, ‘Bleisure’ travellers and their more spontaneous associates the  ‘Workventure’ travellers.

Activities include the more usual sightseeing excursions, but also experiencing art and culture and enjoying local cuisines and customs. It’s a growing trend that goes along with a growing  budget. Bleisure and Workventure travellers tend to spend double than their ‘Business-only’ colleagues, and they also tend to take family or friends along with them to enjoy the experience.

The savvy hoteliers are making sure that they help you to be a savvy bleisure or workventure business traveller. To compete for your business they will keep you up-to-date with local information and events so that you can effortlessly slip out of your suit into your slacks.

It’s clear to see that business travellers are sought after by the best hotels in the world. 4 and 5-star hotels are offering amazing incentives to gain your loyalty. So next time you’re looking for a hotel in a busy city like Kuala Lumpur or Singapore be sure to check out what they’re offering you to keep you coming through their doors.