JAKARTA // The US president Barack Obama made a much-delayed return to his boyhood home of Indonesia yesterday, seeking to engage Muslims and cement strategic relations on the second leg of his Asia tour.
Mr Obama arrived in Jakarta under stormy skies on Air Force One from India, as his nine-day Asian odyssey took him from the world's largest democracy to its most populous Muslim-majority nation.
The president spent four years in Indonesia as a boy, but will have little time for tourism on a shortened, 24-hour visit that will focus on improving ties with the Muslim world and courting opportunities for US companies.
"It's wonderful to be here although I have to tell you that when you visit a place that you spent time in as a child, as the president, it's a little disorientating," he told reporters, standing alongside the Indonesian president Susilo Bambang Yudhoyono.
Within a few hours of Mr Obama landing in Jakarta, Mr Yudhoyono said the two had sealed a "comprehensive partnership" agreement designed to boost ties across economic and other fields.
"We agreed to improve co-operation in a number of sectors, with the main agenda being trade and investment, education, energy, climate and the environment, security and democratisation," Mr Yudhoyono said.
Mr Obama said his administration was "on the right path" in its efforts to build bridges with Muslims around the world, but admitted the job was incomplete and there was "a lot more work to do".
"We don't expect that we are going to completely eliminate some of the misunderstandings and mistrust that have developed over a long period of time, but we do think that we're on the right path."
He said Indonesia was an example of a mainly Muslim country which the US had to engage on a range of levels, including trade, education and climate change.
"You come to a place like Indonesia, which has the largest Muslim population in the world, but people here have a lot of other interests other than security," he said. "Security is important but I want to make sure that we are interacting with a wide range of people on a wide range of issues."
Jakarta was a leafy backwater still dotted with rice paddies when Mr Obama last set foot in the city 39 years ago, arriving there with his mother and stepfather for a four-year stay in the late 1960s.
Now, the Indonesian capital is a traffic-snarled metropolis whose population swells to 20 million people with its daily intake of commuters.
Mr Obama showed off some of his Indonesian language skills when he asked the foreign minister, Marty Natalegawa, "apa kabar?" ("how are you?"), as he greeted officials at the airport.
White House spokesman Robert Gibbs told reporters that volcanic ash spewing from Mount Merapi in central Java could force Mr Obama to make the whirlwind trip even shorter, but said a speech scheduled for today would still take place.
Some 200 million of Indonesia's 240 million people are Muslim, and Mr Obama is scheduled today to visit the Istiqlal Mosque, South East Asia's largest. He is also due to make an open-air speech.
Security has been beefed up in a country that has fallen victim to a number of deadly terror attacks in recent years, with about 8,500 security personnel, including the military, deployed in strategic locations across Jakarta.
US officials say that, as with Mr Obama's trip to India, his visit to Indonesia is designed to reinvigorate relations with an "inspiring" emerging democracy and one of the fastest-growing economies in the world.
Indonesia is South East Asia's biggest economy and the world's third-largest democracy, and is seen as a key strategic partner for the US as it faces 21st-century challenges such as Islamist extremists and the rise of China.
"We've had this focus on Asia and on emerging powers and on democracies as kind of cornerstones of the kind of strategic orientation of the United States in the 21st century," Mr Obama's speechwriter Ben Rhodes said.
"India fits firmly in that category and so does Indonesia."
Mr Obama's speech today has the twin aims of engaging Indonesians on their embrace of democracy and the free market following the fall of the Suharto dictatorship in 1999, and of renewing the dialogue with Muslims opened at his landmark Cairo address last year.
An embarrassed Mr Obama cancelled two previous attempts to visit Indonesia earlier this year as domestic crises intervened in the US, and his curtailed visit may disappoint his hosts.
For a few days this week, it seemed Mr Obama's visit could be in doubt again, after Mount Merapi spewed ash high into the skies and raised fears that Air Force One would be unable to land in Jakarta.
But international flights to the city returned to normal yesterday, even as the volcano continued to belch debris and deadly gas some 430km to the east.
A total of 151 people have lost their lives since Merapi began its latest cycle of eruptions on October 26, and more than 300,000 have fled their homes.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Killing of Qassem Suleimani
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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