Doing business in... Indonesia

Indonesia's long stability of over three decades came to a sudden end after the regional economic crisis of 1997–1998. The economic crisis not only shattered the Indonesian economy but also resulted in political turmoil. The national leadership has changed three times over the last five years. In such conditions, the confidence of foreign investors is very low. The present government has initiated a number of steps to restore political stability and economic recovery. This article provides useful information on the complex business environment, aimed to help foreign investors to develop a good understanding on key background knowledge for being successful in Indonesia. It reviews Indonesian historical development, political structure and climate, regional relations, and economy and foreign trade. Indonesia's infrastructure, legal framework, sociocultural setup, as well as market structure and potential, are also analyzed.

Recent and Miocene carbonate sediments from Indonesia. Available in 2 volumes.

Mapping and sediment sampling in reefs of the Pulau Seribu group (southwest Java Sea) shows the existence of ten physiographic zones and subzones represented by seven lithofacies. Reefs in the northern part of the archipelago are smaller, more closely spaced and morphologically sim pler than those in the south. This pattern is attributed to differences in subsidence rate. A th reedimensional model is proposed for the evo lution of these reefs but borehole data are requi red to test this model. Miocene limestones are described in detail from hydrocarbon reservoirs in the Batu Raja Formation of the same area. Brief comparisons a re made with surface outcrops of approximately coeval carbonate developments. The lithofacies developed within these limestones reflect variations in hydrodynam ic regime and basement topography . Ele\le.n diagenetic processes affected the Batu Raja limestones and the dist ribution of these is primarily related to sealevel fluctuations. Early diagenesis was marine and characterised by micritisation and preCipitation of fibrous and bladed cements. Dolomitisat ion occurred in the mixed- water zone and its variable intensity is attributed to the configuration of the carbonate body relative to this zone. Subsequently the limestones were subjected to freshwater phreatic zone diagenesis resulting in dissolution and cementation, and a t a late stage underwent burial compaction. Secondary porosity, which \ar9e1.y determines the suitability of these limestones as hydrocarbon reserVOirs, is a function of the variable intensity of dissolution and cementation, burial compaction, dolomitisation and possibly micrite neomorphism. The sedimentary processes that generated the Batu Raja buildups are inferred f rom comparisons with the Pulau Seribu and other Recent analogues. The contrasting pinnacle form of the Pulau Seribu patch reefs compared with the low relief of the Batu Raja buUdups results from differences in the initial substrate topography and subsequent subsidence rate

Financial liberalization and stock market volatility:the case of Indonesia

This article examines the relationship between financial liberalization and stock market volatility in Indonesia. By looking at the time series properties of the Jakarta Composite Index (JCI) we identify breaks in stock market volatility which coincide with the timing of major policy events. Our main findings are (i) a significant decrease in volatility after the 'official' opening of the stock market to foreign participation; (ii) a significant increase in volatility in the year before market opening following reforms that eased entry requirements and the issuance of brokerage licenses and (iii) a significant increase in volatility at the time of the Asian crisis followed by a significant decrease in the second and sixth years after the crisis.

Bureaucratic reform in post-Asian crisis Indonesia:the Directorate General of Tax

Our research examines a key aspect of the extensive bureaucratic reform program that was applied to the Indonesian public sector following the Asian Economic crisis. The organisation we focus on is the Indonesian Directorate of Tax. The reforms moved the case organisation towards more bureaucratic organisational arrangements. The most notable elements of the reforms related to the organisational efficiency and changes in administrative style and culture. An ethnographic approach was adopted, in which the researcher was immersed in the life of the selected case organisation over an extended period of time. This research extends a thin literature on the topic of management control and culture in the Indonesian context. Also, this paper fills a gap in the theoretic approaches for studying bureaucracy, which is dominated by western conceptualisations. This paper provides a reminder to policy makers (including organisation such as the World Bank and the International Monetary Fund) of the consequences of neglecting cultural influences when conducting bureaucratic reform.

A strategic perspective of cross-listing by emerging market firms:evidence from Indonesia, Mexico, Poland and South Africa

This paper develops an approach to the analysis of cross-listing that brings together the financial and non-financial benefits of the phenomenon. We employ the real options framework, which offers a detailed characterisation of the strategic issues associated with cross-listing, in the context of internationalisation of emerging market firms. The associated hypotheses are tested using firm-level data from four large emerging market economies with different profiles in terms of institutional quality and financial development. This allows us to extend the existing literature by isolating the relative importance of institutional quality and financial development for the benefits of cross-listing.

Trans Terrains: Gendered Embodiments and Religious Landscapes in Yogyakarta, Indonesia

Transgendered Indonesians live in the fourth most populated nation in the world with more Muslims than any other country. This thesis summarizes an ethnography conducted on one religiously oriented male-to-female transgender community known in the city of Yogyakarta as the waria. This study analyzes the waria’s gender and religious identities from an emic and etic perspective, focusing on how individuals comport themselves inside the world’s first transgender mosque-like institution called a pesantren waria. The waria take their name from the Indonesian words wanita (woman) and pria (man). I will chart how this male-to-female population create spaces of spiritual belonging and physical security within a territory that has experienced geo-religio-political insecurity: natural disasters, fundamentalist movements, and toppling dictatorships. This work illuminates how the waria see themselves as biologically male, not men. Anatomy is not what gives the waria their gender, their feminine expression and sexual attraction does. Although the waria self-identity as women/waria, in a religious context they perform as men, not women.

Physiological response measures (respiration, clearance, byssus production, survival) of Perna viridis during a 91 day exposure experiment to microplastics in Bogor, Indonesia, 2014

Perna viridis from the Bay of Jakarta was exposed to different concentrations (0, 21.6, 216 and 2160 mg/l) of PVC microplastic particles for 91 days in a controlled laboratory experiment. Particles were negatively buoyant, but were regularly resuspended from the sediment, mimicking tidal events. The particles were contaminated with the organic pollutant fluoranthene, except for one control group, which was exposed to the highest plastic concentration (2160 mg/l) but with clean particles. Within the 91 days survival was monitored. After 40 - 44 days of the exposure, physiological responses of all mussel individuals were measured. Respiration rates were measured as the decrease of oxygen in a sealed container in 20 minutes. Clearance rates were determined by measuring the depletion of algal cells in the water in 30 minutes. Byssus production was assessed by counting the number of newly formed byssus discs within 24 hours.

Annotated record of the detailed examination of Mn deposits from the Snellius II - Cruise 4 stations in the vicinity of the island of Misool, Eastern Indonesia

The chemical analyses of ferromanganese encrustations found on the seabed west of Misool, eastern Indonesia, indicate that these deposits formed in a way different from that of world-wide occurring manganese nodules. Ferromanganese coated pebbles and fragments that were found in the deeper parts of the study area probably originate from nearby ridges. The ferromanganese crust on the upper part of a dolomite fragment of ?30 kg is likely to be formed by hydrogenous processes, whereas that from the lower part seems to be formed by diagenetic processes mainly. These assumptions are supported by pore-water data from two box cores taken in the same area. The manganese and iron profiles versus depth in these cores indicate a high flux of these metals to the uppermost sediment layer, and possibly into the overlying bottom water. Factor analysis for the principal components of the microprobe analytical results of the mainly hydrogenous ferromanganese crust demonstrates a strong correlation of manganese with the trace metals, of iron with phosphorus and an antipathetic relationship between iron and manganese. Similar results have also been reported for abyssal manganese nodules in the world oceans. Factor analysis for the principal components of the analytical data obtained for the diagenetic ferromanganese crust results in a clear dolomite (Ca/Mg) dilution factor only.

Information Interventions to Reduce Maternal Mortality in Indonesia

Indonesia consistently records higher levels of maternal mortality than other countries in Southeast Asia with its same level of socioeconomic development. I use a quasi-experimental, difference-in-differences approach to understand whether the role of information on the risk of death in childbirth can change women’s reproductive behaviors. In the first two chapters, I use the Maternal Mortality Module from the Demographic and Health Survey (DHS) in Indonesia to examine fertility and reproductive behavior responses to a sister’s death in childbirth. Fertility desires remain relatively unchanged but women take up behaviors in subsequent births that avert the risk of maternal death. In the last chapter, I combine population-representative data from the DHS with a village-level census (PODES) on service availability to understand how a village-level intervention to improve obstetric service use using a birth preparedness and complications readiness (BPCR) approach may improve obstetric service use. In this study, I find that the Desa Siaga intervention in Indonesia improved knowledge of the danger signs of complications among women but not among men relative to villages that did not get the program while controlling for endogenous program placement. More women got antenatal care due to the program but use of a skilled birth attendant and postpartum care did not change as a result of the intervention. Both genders report discussing a blood donor in preparation for delivery.

Asian green mussels (Perna viridis) transplanted between Jakarta Bay and Lada Bay, West Java, Indonesia (April 2012 - November 2013)

The Asian green mussel Perna viridis is tolerant to environmental stress, but its robustness varies between populations from habitats that differ in quality. So far, it is unclear whether local adaptations through stressinduced selection or phenotypic plasticity are responsible for these inter-population differences. We tested for the relevance of both mechanisms by comparing survival under hypoxia in mussels that were transplanted from an anthropogenically impacted (Jakarta Bay, Indonesia) to a natural habitat (Lada Bay, Indonesia) and vice versa. Mussels were retrieved 8 weeks after transplantation and exposed to hypoxia in the laboratory. Additional hypoxia tests were conducted with juvenile mussels collected directly from both sites. To elucidate possible relationships between habitat quality and mussel tolerance, we monitored concentrations of inorganic nutrients, temperature, dissolved oxygen, salinity, phytoplankton density and the mussels' body condition index (BCI) for 20 months before, during and after the experiments. Survival under hypoxia depended mainly on the quality of the habitat where the mussels lived before the hypoxia tests and only to a small degree on their site of origin. Furthermore, stress tolerance was only higher in Jakarta than in Lada Bay mussels when the BCIs were substantially higher, which in turn correlated with the phytoplankton densities. We explain why phenotypic plasticity and high BCIs are more likely the causes of populationspecific differences in hypoxia tolerance in P. viridis than stress-induced selection for robust genotypes. This is relevant to understanding the role of P. viridis as mariculture organism in eutrophic ecosystems and invasive species in the (sub)tropical world.

Geochemistry and geomicrobiology profiles of ferruginous sediment, Lake Towuti, Indonesia

Lake Towuti is a tectonic basin, surrounded by ultramafic rocks. Lateritic soils form through weathering and deliver abundant iron (oxy)hydroxides but very little sulfate to the lake and its sediment. To characterize the sediment biogeochemistry, we collected cores at three sites with increasing water depth and decreasing bottom water oxygen concentrations. Microbial cell densities were highest at the shallow site - a feature we attribute to the availability of labile organic matter and the higher abundance of electron acceptors due to oxic bottom water conditions. At the two other sites, OM degradation and reduction processes below the oxycline led to partial electron acceptor depletion. Genetic information preserved in the sediment as extracellular DNA provides information on aerobic and anaerobic heterotrophs related to Actinobacteria, Nitrospirae, Chloroflexi and Thermoplasmatales. These taxa apparently played a significant role in the degradation of sinking organic matter. However, extracellular DNA concentrations rapidly decrease with core depth. Despite very low sulfate concentrations, sulfate-reducing bacteria were present and viable in sediments at all three sites, as confirmed by measurement of potential sulfate reduction rates. Microbial community fingerprinting supported the presence of taxa related to Deltaproteobacteria and Firmicutes with demonstrated capacity for iron and sulfate reduction. Concomitantly, sequences of Ruminococcaceae, Clostridiales and Methanomicrobiales indicated potential for fermentative hydrogen and methane production. Such first insights into ferruginous sediments show that microbial populations perform successive metabolisms related to sulfur, iron and methane. In theory, iron reduction could reoxidize reduced sulfur compounds and desorb OM from iron minerals to allow remineralization to methane. Overall, we found that biogeochemical processes in the sediments can be linked to redox differences in the bottom waters of the three sites, like oxidant concentrations and the supply of labile OM. At the scale of the lacustrine record, our geomicrobiological study should provide a means to link the extant subsurface biosphere to past environments.