1. SBA News
This newsletter is a bit later since we had the nose for the news on the minister of finance. We have tried to make an assessment of it and thought it was important to get it in even if it meant a late newsletter.
The SBA Networking cocktail (every 2nd Wednesday every month) will be at Club Macanudo in Shangri-La Hotel, from 19.00 to 21.00 on Wednesday May 12 and we offer free flow of drinks (wine, beer, whiskey, soft drink). The self cost is IDR 150,000 per person. No prior registration needed, just come.
2. Embassy News
TV-shooting for "Menue & Venue" at the Swedish residence
TV-shooting at the Swedish residence on April 28 with METRO TV and their Saturday morning 30 min program "Menue & Venue" . The program will focus on Swedish gastronomy and ambassador Ewa Polano will cook together with Swedish Chefs Johan och Lotta Lassesson, from Cafe Smörgås in Bali and focus on Swedish culinary highlights such as"Gravad Lax, Skagenröra and Kantarellsås".
2010 Spring Fiscal Bill
On Thursday 15 April the Swedish Government presented the 2010 Spring Fiscal Policy Bill. This annual bill usually focuses on economic policy guidelines and contains the Government's forecasts for the Swedish economy and public finances. However, in view of the crisis, this year the Government also proposes a number of measures in the Spring Fiscal Policy Bill and the associated supplementary budget. The economic recovery appears to be arriving sooner and turning out stronger than the Government estimated in the Budget Bill for 2010. Growth of 2.5 per cent is expected this year, followed by 3.9 per cent next year. Unemployment is expected to begin to decline and employment to increase in the course of this year.
"There are various indications that Sweden has coped with the crisis better than many other countries, thanks to responsible financial policies,"says Minister for Finance Anders Borg. "But the economy is still fragile and certain groups have been hit hard by the crisis. Moreover, it is important to ensure that a high rate of unemployment does not become persistent. Consequently, in connection with this Spring Fiscal Policy Bill too, we are proposing a number of measures to continue to lessen the impact of the crisis and nurture economic recovery." The measures include: a further reduction in income tax for pensioners; a rise in the large-family supplement to the child allowance; a temporary shortening of the qualifying period for new start jobs for older people from 12 to 6 months, which will make it easier for older unemployed people to return to the labour market; a temporary summer initiative for young people in school, in the form of summer jobs and summer school; special action for the Västra Götaland region including more places in training schemes; and certain planned infrastructure investments are also being brought forward. To create a better business climate so as to increase productivity, the Government proposes to eliminate audit obligations for small enterprises and simplify VAT reporting.
Statement on Trade Policy presented in the Swedish Parliament
The Government's Statement on Trade Policy was presented in the Parliament on April 14 by Minister for Trade Mrs Ewa Björling. The Statement on Trade Policy is the Government's most important policy document for trade policy, the EU internal market and the promotion of Sweden and Swedish trade. Since the last Statement on Trade Policy in 2008, we have been through a global financial crisis and seen a sharp drop in Swedish goods exports. We are now seeing signs of recovery, the economy has begun to regain momentum and world trade is increasing.
3. Security
Incidents in Tanjung Priok, Blowfish restaurant and Batam island have been the topic of Aprilin the security community. Analysis has been made on the overall situation in Indonesia and the question, how could it happen? Has been on everyone's lips. What did really happen and what will it mean for security in general.
Tanjung Priok was a riot created by a poorly organized regional security department. 2,000 security officers and NOT police officers, tried rather hard handed to empty a grave site after a local hero. Reaction from different groups where harsh back and the incident was a fact. It could easily been solved with some intelligence work on before hand and with some skilled negotiators, which Indonesia have if they just bather to use them. The location for the riot is remote for being Jakarta and damages were limited. The incident will make changes to the local security forces being under the local governments. Impact on foreign business is limited if any.
Blowfish restaurant had an incident where a shooting ended up with a man dead. It seems to be a gang war, but with the restaurant on one side of the quarrel. The serious part is the increased access to firearms in Jakarta, which sooner or later will lead to people getting hurt. Several larger international companies have a "black list" of spots and areas where their expats are forbidden to go during certain times. It will unfortunately be more incidents like this. The globalization will also make the peaceful Indonesian society harder and with more conflicts and confrontations being solved with violence. Impact on foreign business is larger than it should be. Many high level expats are scared of the incident and it will be harder to attract foreign labor as well as foreign investments.
Batam incident is the most serious one, since it involved a foreign company and it was the own staff that started the destruction. An I
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