
photo: AFP
By way of introduction… a short book review.

from Amazon.com
“From the tragedy of 9/11 to the farce of the financial meltdown—but underlying both is the irrationality of global capitalism. In this bravura analysis of the current global crisis—following on from his bestselling Welcome to the Desert of the Real—Slavoj Zizek argues that the liberal idea of the “end of history,” declared by Francis Fukuyama during the 1990s, has had to die twice. After the collapse of the liberal-democratic political utopia, on the morning of 9/11, came the collapse of the economic utopia of global market capitalism at the end of 2008. Marx argued that history repeats itself—occuring first as tragedy, the second time as farce—and Zizek, following Herbert Marcuse, notes here that the repetition as farce can be even more terrifying than the original tragedy.
The financial meltdown signals that the fantasy of globalization is over and as millions are put out of work it has become impossible to ignore the irrationality of global capitalism. Just a few months before the crash, the world’s priorities seemed to be global warming, AIDS, and access to medicine, food and water—tasks labelled as urgent, but with any real action repeatedly postponed. Now, after the financial implosion, the urgent need to act seems to have become unconditional—with the result that undreamt of quantities of cash were immediately found and then poured into the financial sector without any regard for the old priorities. Do we need further proof, Zizek asks, that Capital is the Real of our lives: the Real whose demands are more absolute than even the most pressing problems of our natural and social world? .”
OK? So get out there and spend, spend, spend!
If you don’t need it buy it anyway.
from Bloomberg.com
Indonesian Stocks May Fall on Cabinet, Citigroup Says
By Berni Moestafa
Oct. 23 (Bloomberg) — Indonesian stocks may enter a “correction” on selling by investors to secure gains from Asia’s third-best rally this year because of concern Cabinet appointees lack economic experience, a Citigroup Inc. unit said.
President Susilo Bambang Yudhoyono named two allies to key economics and energy ministry posts this week. The appointments may be seen as political pandering, compromising the government’s ability to drive growth, said Sunny Yoon, president director of PT Citigroup Securities Indonesia.
The Jakarta Composite index has risen 81 percent this year. Yudhoyono’s re-election in July raised optimism he will maintain policies that have helped the economy expand at the fastest pace since the 1997 Asian financial crisis. He won the polls with 60.8 percent of the 121.5 million valid votes.
“There appears to be a disconnection, why would you produce a compromised Cabinet when you have a clear mandate?” Yoon said in a telephone interview in Jakarta yesterday. “The risk here for the market is that a lot of expectation has been built in for a more professional, technocratic type of Cabinet and it hasn’t happened.”
Global interest rates are set to rebound as inflation accelerates, adding a trigger for investors to “realize gains” in Indonesian stocks, Yoon said. Banking and cement shares are most likely to fall, he said.
Consolidate
The benchmark index may “consolidate” at around 2,300 to 2,400 by year-end, Yoon said. The measure climbed 1.1 percent to 2,459.44 at 3:05 p.m. local time, paring the drop this week to 2.3 percent, the most since Sept. 4.
State Secretary Hatta Rajasa, a member of the National Mandate Party allied to Yudhoyono, was named coordinating minister for economic affairs. Rajasa has “limited economic experience but it’s hoped he’ll be able to provide a political shield for economic ministers under him in the parliament,” said Fauzi Ichsan, chief economist at Standard Chartered Bank Plc in Jakarta.
Darwin Saleh, an economics lecturer and member of Yudhoyono’s Democrat Party, will become energy minister running Southeast Asia’s biggest oil and natural gas industry. He has “insufficient experience in that field,” said Umar Juoro, an economist at the Jakarta-based Center for Information and Development Studies.
No Knowledge
“If you don’t have the knowledge you can’t make decisions, consequently policies won’t work,” said Fadlul Imansyah, a fund manager at Jakarta-based PT PNM Investment Management, which overseas about $148 million in assets. That may hamper Yudhoyono’s efforts to accelerate infrastructure projects needed to boost economic growth, Imansyah said.
Other appointments by Yudhoyono are more likely to reassure investors. He retained Finance Minister Sri Mulyani Indrawati and Trade Minister Mari Pangestu. Sri Mulyani and Pangestu, along with Vice President Boediono, the former head of the central bank, are “most favored by the markets,” said Winang Budoyo, an economist at PT Bank CIMB Niaga.
The Democrat Party, which held 10 percent of parliament during Yudhoyono’s first term, almost tripled its share to 148 seats in April 9 legislative elections, making it the biggest party in the 560-strong body. Yudhoyono’s coalition controls 75 percent of parliament.
Assertive Presidency
“Those that had predicted a more assertive presidency in the second term could start toning down their expectations,” Bank Danamon’s Arman and Anton Gunawan wrote in a note yesterday. “We think the announcement of the Cabinet line-up would at most have a neutral impact for the markets.”
Next year, the Jakarta Composite may advance and exceed its January 2008 record of 2,830.26 points, Citigroup’s Yoon said. He recommends PT Telekomunikasi Indonesia, the nation’s biggest company by market value, as it’s trading at a discount to the market and will benefit from improving consumer demand in 2010.
Consumer spending accounts for about two-thirds of the economy. The government expects growth to accelerate to 5.5 percent next year from an estimated 4.3 percent this year. Bank Indonesia has cut its benchmark interest rate nine times to a record low of 6.5 percent this year, helping Southeast Asia’s biggest economy to avoid recession.
Speculation that the central bank will increase interest rates has intensified with gains in inflation. Consumer prices rose 2.83 percent in September from a year earlier after gaining 2.75 percent in August. That was more than the 2.6 percent increase expected by economists in a Bloomberg News survey.
Bank Indonesia, which kept rates unchanged for a second month on Oct. 5, is scheduled to hold its next policy meeting on Nov. 4.”
from AFP 10.22.09
Indonesia’s new govt targets 7% growth
By Stephen Coates (AFP) – 11 hours ago
JAKARTA — Indonesian President Susilo Bambang Yudhoyono said on Friday his new economic team is targeting seven percent growth by 2014, setting Southeast Asia’s biggest economy back on its pre-crisis trajectory.
On the first full day at the helm of his new cabinet, which was sworn in Thursday after July presidential polls, Yudhoyono also promised the resource-rich country’s wealth would be more evenly distributed.
“In the next five years we’ll be getting back on track. Our target is seven percent or more to improve the livelihoods of the people,” he said in an address to the inaugural session of the new cabinet.
Yudhoyono said his government had yet to work out the details of its plans but promised “development that is inclusive and just” to reduce poverty in the mainly Muslim archipelago of 234 million people.
The government has predicted growth of 4.0-4.5 percent this year, third only to China and India in the G20 club of rich and major developing countries. The economy grew 6.1 percent in 2008.
The local stock market has soared almost 80 percent in 2009, but about half the population continues to live on less than two dollars a day, according to the Asian Development Bank.
Yudhoyono said seven percent growth could have been reached this year but for the global downturn.
“Because of the economic storm, we’ve been set back,” the 60-year-old former general said.
Yudhoyono’s new coordinating minister for the economy, Hatta Rajasa, earlier said that while the government was aiming for seven percent growth by 2014, a longer-term eight percent target was “achievable”.
His comments reflect the view among many investors that Indonesia is poised to join the so-called BRIC nations — Brazil, Russia, India and China — as one of the rapidly growing countries that could dominate the world economy by mid-century.
Yudhoyono was inaugurated Tuesday having won a landslide election victory in July, on promises to fight corruption and boost economic growth.
He has compiled a rainbow coalition of six parties controlling 423 out of 560 seats in parliament, but has come under fire for handing most seats to party-political figures rather than competent experts more likely to improve governance and fight corruption in the world’s third biggest democracy.
The choice of former transport minister Rajasa as economy minister raised some eyebrows, but the all-important posts of finance and trade stayed with incumbents seen as reliable technocrats.
Former International Monetary Fund senior executive Sri Mulyani Indrawati kept the finance portfolio, while Mari Pangestu stayed in charge of the trade ministry, where she has been a steady advocate of open markets.
Indonesia’s financial markets mostly welcomed Yudhoyono’s comments, with the rupiah ending the session higher at 9,435 to the dollar compared with its Thursday close of 9,540. Local stocks closed 1.43 percent in the black.
Standard and Poor’s ratings agency changed its outlook for Indonesia to positive from stable, raising hopes of a credit rating upgrade in 2010.
It said the brighter outlook was supported by an improving public-debt ratio and rising foreign reserves, which hit a record of 62.3 billion dollars on September 30, easing potential external liquidity concerns.
“Notably, these positive trends have not been derailed by the effects of the global financial market and economic turmoil of the past year,” agency credit analyst Agost Benard was quoted as saying by Dow Jones Newswires.”