Gary Dean - Posts

Indonesia 2020: Consolidate, and Respond

 – An open letter to my friends and clients in Indonesia.

The global economy has taken a blow, with volatility in exchange rates and commodity prices and mass unemployment. National monetary authorities have adjusted their predictions for economic growth in 2020-2021, with negative growth expected in 2020 and 2021. Many governments are implementing exceptionally large stimulus packages. As the international response continues to develop, we know that small and medium sized businesses in particular are facing significant challenges, to which they need to respond appropriately. No business in Indonesia will escape completely unscathed as a result of the pandemic. Businesspeople are planning and taking defensive actions in order to protect their customers, clients, employees, and themselves. Economic stimulus measures being implemented by the Indonesian government are targeting the economically weakest in the population, and this shou

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Indonesian Land Law and Foreign Ownership of Land

Indonesian Land Law is quite different indeed to the laws that apply in most Western or developed countries. Foreigners wishing to use or purchase land for whatever purpose need to be aware of these differences and not assume that legal conventions that apply in their home countries necessarily apply in Indonesia. Legal certainty in Indonesia has always been rather precarious, not least in the realm of land ownership. However, secure land title for foreigners is possible if correct procedures are observed. Background There are two important "phases" when discussing Indonesian land law, that is, the phase before September 1960, and the phase after this date. Before September 1960 Indonesian land law comprised a mind-boggling cacophony of traditional adat law, Dutch colonial laws, Western civil law, and laws enacted by the Indonesian government from the time of indepen

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Doing Business in Indonesia

 – From a Western Perspective

This is a modified version of a report commissioned by the East Asia Analytical Unit of the Australian Department of Foreign Affairs and Trade in July 2000, as part of a book entitled Indonesia: Facing the Challenge published in December, 2000. Views contained within this report are entirely my own and do not necessarily reflect views of EAAU, DFAT or any of its officers, past or present. Indonesia is not the easiest place in the world in which to do business. The 'World Competitiveness Scoreboard' currently ranks Indonesia at 45, only two places ahead of Russia (47), and in stark contrast to countries such as Australia (13), Singapore (2) and the US (1). Clearly, in terms of the measures used by the producers of this scoreboard, Indonesia at the moment is found severely wanting, with its potent brew of traditional cultures, bureaucracy, legal uncertainty and social instabi

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Culture Matters in Indonesia

 – An email exchange with Dennis De Tray, Indonesia country director, World Bank 1997-1999

The views contained within this article are entirely my own and do not necessarily reflect past or present opinions or policies of any other person or organisation. Culture really matters when doing business, especially in Indonesia. An understanding of the cultures, outlooks, perceptions of the people with whom we do business, as well as an understanding of our own cultures and values, has enormous real practical application and value. What follows is an email reply I sent to Mr. Dennis De Tray, the former country director of the World Bank in Indonesia at the time of the economic crisis. It briefly discusses why "culture matters". ----- Original Message ----- From: "Gary Dean" <xxxxxxxx@xxxxx.xxx> To: "de Tray, Dennis" <xxxxxxx@xxx.xxx> Subject: RE: Your "Analysing the end of Suharto's Indonesia" Date: Wed, 1

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The role of FDI in the development of Singapore

 – A model development path?

The rapid economic development of the NIEs (Hongkong, Singapore, South Korea, and Taiwan) over the past three decades has necessitated the utilisation of external resources, principally foreign capital.[1] Without such resources, industrialisation and development on the scale undertaken could simply not have occurred.  These external capital resources have taken the form of aid, grants, borrowing, and direct foreign investment (FDI). Of the NIEs that have taken conscious control of the national economy -- which is to say, all of them with the exception of Hongkong -- only Singapore chose to use FDI as its principal source of external capital.  Taiwan and South Korea, by stark contrast, chose a completely opposing route and in the main relied upon external borrowings and aid to support their developmental agendas. Consequently, 'technological deepening' and

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Indonesia's Economic Development

 – in comparison to South Korea and Taiwan

The rapid pace of economic development in East Asia over the past few decades has awed the world.  This is particularly so for the so-called Newly Industrialising Countries (NICs) which include South Korea and Taiwan, together with the city-states of Singapore and Hongkong.  Since the 1980's, these states have experienced very rapid growth rates, especially South Korea and Taiwan, which have recorded annual GDP growth of 9.7% and 8.3% respectively during the period 1980 to 1990.  By comparison, Indonesia during this same period recorded 5.4% annual GDP growth, which whilst still a fast rate of economic growth, comes nowhere near that of South Korea and Taiwan.[1] This paper shall focus on the recent economic development in Indonesia, and attempt to contrast it with that of Korea and

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Joint Venture, or 100% Foreign-Owned?

[First published in OzIndo Vol 5 No 1, magazine of the Australia-Indonesia Business Council] Joint ventures (JVs) have long been the working foundation upon which foreign investment has entered many developing countries. In fact, in many countries JVs are the only way that foreign capital can be invested. A foreign company is therefore compelled to 'match up' with an appropriate local partner in order to smooth entry into that business environment. The thinking behind JVs is of course one of mutual benefit; benefit to the foreign company in terms of market access and access to the local conditions which make the country attractive to investment, and benefit also to the local participant, who is able to scale up their operation to world standards and gain tangible benefits such as profits, technology and international business experience. Until very recently JVs were

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The Importance and Consequences of Trade in Southeast Asia

 – until 1870

To trade is human.  Like the ability to communicate abstract ideas, trade is one of those activities that differentiates Homo sapiens from the rest of the animal world.  And trade is more than just a mere exchange of surplus; its social and political impact is profound binding both families, tribes and nation-states into intricate webs of human intercourse.  These ever widening circles of trade interaction encompass the world within a vast network of patronage, obligation and interdependency. It is not possible to separate economics from its social and political consequences.  Throughout history trade has been an important driving force, impacting upon societies - for better and for worse - throughout the entire world.  Perhaps more than any other region on Earth, Southeast Asia has felt the driving force of economics transform its social and po

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Hukum Agraria Indonesia

 – (Indonesian Land Law)

Gary Robert Dean (Universitas Gadjah Mada NIM 96/111909/EK/13500) Dalam pembahasan tentang sejarah Hukum Agraria Indonesia ada dua fase penting yang harus dipertimbangkan, yaitu fase sebelum September 1960, dan fase sesudah tanggal itu. Dalam fase sebelum September 1960 Hukum Agraria Indonesia terdiri atas bagian-bagian dari Hukum Perdata Barat, Hukum Adat orang Indonesia asli, Hukum Antar Golongan dan hukum sesudah proklamasi merupakan pengaruh dari Hukum Tata Negara. Dari semua hal di atas yang paling penting dijadikan landasan Hukum Agraria Indonesia pada zaman penjajahan Belanda adalah Pasal 51 I.S. tahun 1870, juga dikenal dengan nama bahasa Belanda Agrarische Wet. Sebagai pelaksanaan daripada Agrarische Wet adalah Penyataan Domein (Domein Verklaring) yang berbunyi bahwa: "Semua tanah yang orang lain tidak dapat membuktikan, bahwa itu eigendomnya adalah tanah d

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