"Heroes in Wayang Kulit embark on arduous journeys filled with trials and tribulations. These journeys are metaphors for the path to self-discovery and enlightenment. They signify the spiritual and personal growth that comes from overcoming challenges, learning from experiences, and striving for a higher purpose.By using 'Basa Jawa', our Ki Dalang narrates a story. It goes like this, 'Bima, a mighty warrior from the Pandawa family, once found himself lost in a dense forest. As he wandered, he came across a talking donkey. Seeing an opportunity for fun, the donkey told Bima that it knew the way out but would only reveal it if Bima could answer a riddle. Bima, confident in his intellect, agreed.The donkey asked, 'What walks on four legs in the morning, two legs at noon, and three in the evening?'Bima, baffled by the question's simplicity, overthought it and gave a series of complex, incorrect answers. The donkey, delighted by Bima’s confusion, eventually told him the answer, 'A human.'Embarrassed but amused, Bima acknowledged the donkey’s wisdom and followed its directions to find his way out of the forest, grateful for the lesson in humility and the humour it brought to his journey.""Wayang Kulit is indeed from Indonesia, specifically from the island of Java. It is a highly revered form of traditional shadow puppetry that has been an integral part of Javanese culture for centuries. In 2003, UNESCO recognized Wayang Kulit as a Masterpiece of the Oral and Intangible Heritage of Humanity. This designation highlights the art form's cultural significance and her importance in preserving traditional storytelling and performance arts.Indonesia is sometimes referred to as "The Living Museum of Ancient Cultures" because it preserved traditional practices and ancient customs. She is often described as a 'Melting Pot of Cultures' due to her vast array of ethnic groups, languages, and traditions. Her rich cultural diversity and the harmonious blending of different cultures, religions, and traditions that coexist within her borders," Seruni went on while looking at gunungan or kayon, a conical or triangular structure inspired by the shape of a volcano."Indonesia is frequently called 'The Necklace of Islands' because she is an archipelago comprising over 17,000 islands. Each island is a unique 'gem' contributing to the diverse cultural and ecological tapestry of the nation, linked together like precious beads in a necklace. Indonesia is often referred to as 'The Emerald of the Equator' due to her lush, green landscapes and extensive tropical rainforests. Known as 'The Land of Fire and Water,' Indonesia is famous for her numerous volcanoes and surrounding seas. The dynamic natural landscape of Indonesia is characterized by active volcanoes (fire) and her vast maritime territory (water), symbolizing both the destructive and life-giving forces of nature.Indonesia is often termed 'The Heart of Southeast Asia' due to her central geographical location and significant influence in the region. This emphasizes Indonesia's strategic position and her cultural, political, and economic impact on the Southeast Asian region, acting as a central force in regional affairs. Historically, Indonesia has been called 'The Garden of Spices' because of her rich production of spices like cloves, nutmeg, and pepper. Indonesia’s historical importance in the global spice trade highlights her agricultural richness and her pivotal role in the world’s economic history.The Indonesian economy is one of the most diverse in Southeast Asia, characterized by a mix of natural resources, industrial activities, and a growing services sector. Indonesia is a significant producer of oil and natural gas. It was formerly a member of OPEC and remains one of the largest gas exporters in the world. Coal mining is a major contributor to the economy, particularly in regions like Kalimantan and Sumatra. Indonesia is a leading producer of nickel, a key component in stainless steel and batteries for electric vehicles. The country also has large deposits of copper and gold, with major mining operations by companies like Freeport-McMoRan. Indonesia is the world’s largest producer of palm oil, a critical export commodity. The country is also a significant producer of rubber and cocoa, essential for global markets.The textile and apparel industry is a major export sector, providing employment and contributing to economic growth. The production of electronics and machinery is expanding, with investments in technology and infrastructure to boost competitiveness.Indonesia's diverse culture and natural beauty, including destinations like Bali and Borobudur, attract millions of tourists annually. Tourism contributes significantly to GDP and provides jobs across various regions. The financial services sector is growing, with a focus on expanding banking penetration and financial inclusion across the population. The telecommunications sector is expanding, driven by increasing smartphone penetration and internet usage. Indonesia is experiencing a boom in e-commerce, with platforms like Tokopedia and Bukalapak playing significant roles in the digital economy.Agriculture remains critical, producing rice, maize, and other staple crops that are essential for food security. Coffee, tea, and spices are compelling exports, contributing to foreign exchange earnings. Indonesia’s vast maritime territory supports a large fisheries sector, with exports of fish and seafood being a vital part of the economy.Major investments are being made in road and railway networks to improve connectivity and reduce logistics costs. Upgrades to airports and seaports are enhancing capacity and efficiency, facilitating trade and tourism. Special economic zones and industrial parks are established to attract investment and boost industrial growth.Indonesia has a large and youthful population, providing a potential demographic dividend for economic growth. The workforce is expanding, with efforts to improve skills and education to boost productivity. Rapid urbanization is leading to the development of major urban centres, driving economic activity and infrastructure needs.The Indonesian economy faces several weaknesses and challenges that can impact its sustainable development and overall economic health. Indonesia’s heavy reliance on the export of commodities like coal, palm oil, and natural gas makes its economy vulnerable to global price fluctuations. Changes in commodity prices can lead to significant economic instability and revenue shortfalls. Over-reliance on natural resources can lead to depletion and environmental degradation, jeopardizing future economic sustainability.Despite improvements, Indonesia still faces serious gaps in infrastructure, particularly in remote and rural areas. Poor transportation networks increase logistics costs and hamper economic development. Inadequate energy infrastructure, especially in outer regions, limits industrial development and affects the quality of life for residents. A heavy reliance on fossil fuels for energy generation poses challenges for sustainable development and climate change mitigation.Corruption remains a momentous challenge in Indonesia, affecting government efficiency, public services, and the business environment. It undermines trust in institutions and discourages foreign investment. Excessive bureaucracy and complex regulatory frameworks can stifle business activities and innovation. Inadequate enforcement of property rights and legal protections can hinder investment and economic growth. Inefficiencies and lack of transparency in the judicial system create uncertainty for businesses and investors.Limited access to education, healthcare, and economic opportunities in less-developed regions perpetuates inequality and poverty. Despite improvements, the quality of education in Indonesia remains below international standards. This results in a workforce that lacks the skills needed for high-value-added industries. Inequities in access to quality education, particularly in rural areas, limit human capital development and economic potential. The education system does not adequately prepare students for the demands of the labour market, leading to a mismatch between skills and job requirements. A compelling portion of the workforce is employed in the informal sector, which typically offers lower wages and less job security. The wealth gap between the rich and the poor is widening, with significant portions of the population living in poverty. This affects social cohesion and overall economic stability.Indonesia’s manufacturing sector is often focused on low-value-added production, limiting its ability to move up the value chain and compete globally. The country’s dependence on imported machinery and technology stifles the growth of domestic industries and innovation. Investment in research and development is relatively low, hindering technological advancement and economic diversification. The innovation ecosystem is underdeveloped, with limited support for startups and small and medium enterprises.High rates of deforestation and land degradation due to palm oil plantations and mining activities contribute to biodiversity loss and environmental harm. Air and water pollution, particularly in urban areas, pose significant public health and environmental challenges. Indonesia is highly susceptible to natural disasters, including earthquakes, tsunamis, and volcanic eruptions, which can disrupt economic activities and damage infrastructure. Climate change impacts, such as rising sea levels and extreme weather events, threaten agricultural productivity and coastal communities.Persistent current account deficits reflect reliance on foreign capital to finance growth, making the economy vulnerable to external shocks. High levels of foreign debt, particularly in the private sector, can lead to financial instability and limit economic policy flexibility. Volatility in the rupiah can lead to inflationary pressures, affect import costs, and increase the burden of foreign-denominated debt.An increase in the price of the US dollar (USD) when bought with the Indonesian rupiah (IDR) has several serious impacts on Indonesia's economy and the everyday lives of its citizens. A higher USD/IDR exchange rate means it costs more rupiah to buy the same amount of US dollars. Consequently, the cost of importing goods and services priced in USD, such as electronics, machinery, and raw materials, rises. The increased cost of imports can lead to higher prices for consumer goods, contributing to inflation. Essential goods like fuel, which are typically priced in dollars, become more expensive, impacting both businesses and consumers.Many Indonesian companies and the government have foreign-denominated debt, often in USD. A stronger dollar means these debts become more expensive to service and repay, putting additional financial strain on these entities. Higher debt servicing costs can constrain government budgets, limiting funds available for public services and development projects.A stronger USD can make Indonesian exports more competitive, as they become cheaper for foreign buyers. This could potentially boost exports in sectors like textiles, palm oil, and coal. However, if the increase in export revenue doesn’t offset the higher import costs, it could worsen the trade deficit, impacting the country’s current account balance.Investors may pull out of emerging markets like Indonesia to seek safer returns in US dollar assets, especially if they anticipate further weakening of the rupiah. This can lead to a reduction in foreign investment, negatively affecting economic growth. On the flip side, a weaker rupiah might make Indonesian assets cheaper for foreign investors, potentially attracting investment in stocks and real estate.Everyday items that are imported or made with imported components become more expensive, reducing purchasing power. This includes electronics, cars, and even certain food items. The cost of fuel, which is often imported and priced in dollars, can increase, leading to higher transportation costs and affecting prices across various sectors. If the rupiah continues to weaken, the real value of savings held in the rupiah can decrease, affecting the financial stability of individuals. Travelling abroad has become more expensive for Indonesians as they need to spend more rupiah to buy foreign currency for travel expenses. Uncertainty about the rupiah’s value and rising costs can lead to reduced consumer confidence, with people cutting back on discretionary spending. This can slow down economic activity further.The Bank of Indonesia (BI) might increase interest rates to curb inflation and stabilize the rupiah. Higher rates can attract foreign investment but may also slow down economic growth and increase borrowing costs for consumers and businesses. BI may intervene in the foreign exchange market to support the rupiah by selling foreign reserves. However, this is a temporary measure and not a sustainable long-term solution.Indonesia is known as 'The Archipelago of Unity in Diversity', which is also its national motto. Indonesia can be described as 'The Maritime Silk Road Crossroads' because of its historical role in trade routes connecting Asia with the Middle East and Europe. Indonesia is sometimes referred to as 'The Land of Smiles' due to the warmth and hospitality of its people.We will continue our discussion about Indonesia on the next episode, biidhnillah."Then Seruni read a rhythmical piece,In halls of power, they parade, with egos fit for kings,Good at changing the rules, according to their dreams.They promise golden futuresYet trip on every truth they slash
Citations & References:
- Aris Ananta, Muljana Soekarni & Sjamsul Arifin (Eds.), The Indonesian Economy: Entering A New Era, 2011, ISEAS
- Bruce Glassburner (Ed.), The Economy of Indonesia: Selected Readings, 2007, Equinox
- Thee Kian Wie, Indonesia's Economy Since Independence, 2012, ISEAS
