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COMMENTARY ON US-INDONESIA COMMERCIAL DEVELOPMENTS FROM THE AMERICAN INDONESIAN CHAMBER OF COMMERCE

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Tuesday, August 24, 2010

Bali-Wood: “Eat, Pray, Love”

The new Julia Roberts vehicle showcases her shining presence and gives Bali a real Hollywood live star turn for the first time. This is no Hope/Crosby “Road To Bali” flick made in a studio; the scenes of the island of the Gods are real and the island looks gorgeous. I kept an open mind, not expecting very much. I hoped Bali would come through as more than a caricature of what it really is. I am not sure that it did. The movie predictably reinforces Bali's image as a place for spiritual renewal but equally clear is its location as a place for well-to-do expats to party and fool around. There's no link to Bali's place within Indonesia; in fact, I am not sure the word Indonesia is mentioned. You don't hear any of its music or see its wonderful performing and visual arts or great temples. Hardly any crafts. What you do see is the creativity of its paddy landscapes. In other words, great tracking shots. The soundtrack for the Bali section is primarily samba, the leit motif of its main character's Brazilian love interest.

I have heard that there has been an uptick in travelers because of the book and I imagine the same with the movie. That's a good thing I suppose.

The Indonesian actors are quite strong (the great Christine Hakim and the wonderful Hadi Subiyanto ) In fact, they steal some of the scenes they have with Julia Roberts. Indonesia can be proud of its performers transcending their locale.

What you learn about Bali is superficial but perhaps it will encourage stronger story lines. Now Hollywood has proven that Indonesia can support a big budget location shoot. To me the movie is a fairly prosaic ode to single womanhood and single motherhood. It has heart and accurately represents expats who find “balance” in their chaotic lives from a time in Bali. But those tracking shots mirror the sense of someone merely passing through, which is exactly what its main character does.

Friday, August 6, 2010

Rupiah May Go on a Diet

The rupiah as we know it may be history in ten years. What, you say, how can that be. Don’t panic; no need to liquidate positions. There is no drastic devaluation coming. Just gaze wistfully at those many zeroes on bank notes and prepare to say goodbye. If a Bank Indonesia plan is adopted (and I emphasize the word if) we will all be making new, simpler calculations. You guessed it: the rupiah is being prepared for a “re-denomination”. After a 10 year phase-in period currency notes would not have the zeroes.

"Re-denomination shall be in no way detrimental to the public as it differs from previous currency reforms that reduced the exchange value of the currency. Redenomination does not affect the value of money against goods (purchase power), several zeros are simply omitted from the current denominations," clarified the new Governor of BI, Darmin Nasution.

Unlike the two other times in Indonesia’s history when the currency was redenominated to cope with high inflation this one would reflect the growing strength and stability of Indonesia’s economy and would simplify transactions. Bank Indonesia spokesmen indicated that another aim is to help in the preparation of an ASEAN Economic Community. So far local businesses and economists have had a positive reaction to the announcement even though they acknowledge there will be be costs. Several leading business leaders speculated that the change (basically shifting the decimal place) will create a more positive perception of value. However, the markets and some members of the public had an initial negative reaction. One group that will immediately cheer this move is the tourist, usually bewildered at money changing windows and the cash register.

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President of the American Indonesian Chamber of Commerce, a private not for profit membership organization based in NY.

These views do not necessarily represent those of the American Indonesian Chamber of Commerce or its members.

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