Indonesia's Widodo on a mission to safeguard progress


Mohamad Ali Harisi
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In the Bogor Presidential Palace south of Jakarta, the staff's faces reflect the calm energy of the 18th-century mansion, with warm smiles from the security personnel to the executive office.

President Joko Widodo is no different. Joking with his staff, he shares this tranquillity. Yet, his mind is racing: he wants to ensure that the reforms and changes his presidency has brought to Indonesia will continue after his term ends this year.

From foreign policy and climate change to the economy and the ambitious project of building a new capital, the leader of this vibrant nation of 280 million is on a lasting mission to forge strategic partnerships to strengthen the progress of his country, and safeguard his legacy.

The UAE, which President Widodo is visiting on Tuesday, stands as a key pillar in this journey.

We need burden sharing, not burden shifting
Indonesian president Joko Widodo

“The UAE is Indonesia’s strategic partner in the Middle East. Indonesia is also the UAE’s strategic partner in Asia. Therefore, the relationship between the two countries is complementary,” said Mr Widodo in an exclusive interview with The National at the historic palace, once a residence for Dutch governors during the colonial period.

“Moreover, I do have a close relationship with His Highness Sheikh Mohamed bin Zayed, strengthening our ties in political, economic and development sectors,” he said on the eve of his fourth visit to Abu Dhabi since he came to power in 2014.

Two years ago, the UAE and Indonesia signed a Comprehensive Economic Partnership Agreement (CEPA) aimed at turbocharging bilateral trade to $10 billion within five years and promising to unlock the untapped potential of the halal economy. The pact came into force in August 2023.

Indonesia, the world's fourth-most populous country and the largest economy in South-East Asia, has significantly increased its trade value with the UAE under Mr Widodo's leadership. A decade ago, the non-oil trade value was much lower, but it has now risen to $4 billion.

The agreement also seeks to raise the combined value of trade in services between the two nations to $630 million by 2030.

Mr Widodo, the only Indonesian leader to emerge from outside the country's traditional political and military spectrum, is confident that this unique relationship will continue as he seeks partnerships in energy transition and investors for Indonesia's mega projects.

The leader said he looks forward to “seeing the partnership expand into new sectors like the clean energy and electric vehicles and also the new capital Nusantara” located in East Kalimantan on the island of Borneo.

“Nusantara reflects Indonesia's transformation through a new way of working and a new mindset that is smarter, greener and sustainable,” he said, adding that he has invited Emirati investors to visit the site.

Beyond what is written

Home to more than 30 million people in its greater area, Jakarta has long been impacted by flooding worsened by rising sea levels. However, it is not only the capital that faces these dangers; the archipelago is one of the most vulnerable regions in the world to the effects of climate change.

Mr Widodo called for a global commitment to fighting environmental threats.

“Developing Countries need the support from developed countries, including financing and also the technological transfer. And the 10 billion US dollar commitment to climate financing has yet to be implemented. Addressing climate change requires co-operation and commitment beyond what is written on paper.

“We need burden sharing, not burden shifting,” stressed the Indonesian leader known as President Jokowi.

Indonesian President Joko Widodo during an interview with the National at the Bogor Palace south of Jakarta
Indonesian President Joko Widodo during an interview with the National at the Bogor Palace south of Jakarta

The UAE and Indonesia are also united in the fight against climate change.

In May, it was announced work had begun on a new mangrove research centre in Indonesia, in collaboration with the UAE. Backed by the UAE's $10 million investment, the Mohamed bin Zayed-Joko Widodo International Mangrove Research Centre will be built on 2.5 hectares of land in Bali's Ngurah Rai Forest Park.

The park is already home to more than 1,158ha of mangroves and the research centre was first announced at last year's Cop28 climate change conference in Dubai.

Mr Widodo praised last year's climate conference, saying the “UAE has been successful in leading Cop28, and the team was very efficient in uniting and then acting and delivering".

"It has produced the first mechanism [ …] for climate action, and sustainable partnerships and solutions such as funding through the loss and damage fund."

Led by Minister of Industry and Advanced Technology and Cop28 President Dr Sultan Al Jaber, the climate conference ended on December 13 last year with a historic agreement known as the UAE Consensus in which close to 200 countries agreed to transition away from fossil fuels in global energy systems along with a huge expansion of clean energy.

The UAE is also set to host a crucial gathering in Abu Dhabi in November, ahead of Cop29 in Azerbaijan, that will seek to focus minds on how artificial intelligence can help in the fight against climate change.

For the businessman turned president, the energy transition shouldn’t be used as “justification to make discriminative policies that obstruct development”.

The same goes for food security, a global challenge intensified by the effects of climate change. Collaboration is crucial, requiring co-operation not only among governments but also within the private sector, said Mr Widodo.

In its long pursuit of partnerships to transform the nation's economy, the Indonesian leader has sought to diversify allies by looking for partners in areas such as the Middle East and Africa.

His strategy aims to broaden economic co-operation and foster development in sectors that are crucial for a nation that has the largest Islamic population in the world.

Competition and rivalry

That is not an easy task when conflicts around the world push to polarise the international community.

In the Middle East, China has bolstered its influence through economic ties and diplomacy, forming strategic partnerships with countries like Iran and Saudi Arabia. The US, which has long-standing alliances in the region, views this expansion with concern and aims to counterbalance it.

“Competition and rivalry are normal. What is important is that it must be managed properly to prevent open conflicts, because war and conflicts harm everyone. The US and China are both good friends of Indonesia. Indonesia implements an independent and active foreign policy, and that does not take sides,” said Mr Widodo.

He called for a “transformation based on the spirit of multilateralism and collaboration including by pushing for UN reform to regain international trust. International law must be upheld without discrimination, and cannot be a double standard”.

Asked if the G20 could be the best format for international governance amid the divisions and weaknesses of the UN Security Council, he said that it is not “the right forum to resolve political and security issues that fall under the UN. This is why a UN reform is urgently needed”.

One of the biggest conflicts causing division on the world stage is the current war in Gaza, where Israeli bombardments have killed more than 38,400 Palestinians since the Hamas attacks on October 7 that killed about 1200 Israelis. The ravaging war in the besieged Palestinian territory has drawn condemnation around the globe, with countries calling for an immediate ceasefire to stop the bloodshed.

“The real cause of the Palestinian issue is the Israeli occupation,” stressed Mr Widodo.

“The root cause is there. That can only be resolved if the root cause is resolved: an independent Palestine. Therefore, Indonesia continues to push for a two-state solution and a full membership for Palestine in the UN.

“We need to immediately ensure a ceasefire and then the delivery of humanitarian assistance. We all have a responsibility to make this happen.”

The other major conflict with global implications is the war between Russia and Ukraine, in which Indonesia has tried to help bring a peaceful resolution. Mr Widodo said he had spoken to the leaders of the two countries in 2022 and sent last month a representative to Ukraine.

“It is a difficult conflict,” said Mr Widodo, adding that Indonesia continues to push for peace “using the capacity we have”.

The world is also on edge ahead of the US presidential elections, and tensions escalated last week when former president Donald Trump was shot in the ear during a rally in Pennsylvania. The assassination attempt resulted in one fatality and two injuries.

“I am very surprised with that incident. It's not good for democracy, not only in the US but in all other countries,” said Mr Widodo.

A general view of Jakarta
A general view of Jakarta

One additional task

President Widodo is due to step down this year at the end of his second and final term.

He will be succeeded by Defence Minister Prabowo Subianto, who previously lost two presidential races to him. The wealthy former general chose Mr Widodo's young son as his running mate after an exception created by the top court that allows current and former regional governors to run at 35.

However, the former furniture businessman faces an additional task: ensuring that the growth and stability he has brought to the nation, continues.

“People’s trust is my priority because, without the people's trust, a leader cannot do much. I'm not an elite party member. I come from a very humble background, therefore, people's support and trust are my sources of strength.”

“Going forward, I hope the transformation that we have conducted for the past decade can continue and enable Indonesia to become an advanced nation.”

For the leader known for visiting local markets and forming friendships with ordinary citizens, the future “will not be an easy era, for all countries, not only for Indonesia”.

“Challenges of geopolitical and global tensions. Threats of food and economic crises. Impacts of climate change and technological disruption. But amid increasingly complex challenges, I see that Indonesia has a good opportunity to make a leap.”

The biog

First Job: Abu Dhabi Department of Petroleum in 1974  
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Types of fraud

Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.

Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.

Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.

SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.

Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.

Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.

* Nada El Sawy

The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

Bert van Marwijk factfile

Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder

Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia

Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands

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About RuPay

A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank

RuPay process payments between banks and merchants for purchases made with credit or debit cards

It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.

In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments

The name blends two words rupee and payment

Some advantages of the network include lower processing fees and transaction costs

UAE currency: the story behind the money in your pockets
Super Bowl LIII schedule

What Super Bowl LIII

Who is playing New England Patriots v Los Angeles Rams

Where Mercedes-Benz Stadium in Atlanta, United States

When Sunday (start time is 3.30am on Monday UAE time)

 

The specs

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Torque: 565Nm at 6,500rpm

Transmission: 7-speed dual-clutch auto

Price: From Dh1 million

On sale: Q3 or Q4 2022 

Updated: July 18, 2024, 9:36 AM