Economics
Naiknya kesenjangan: Mengapa ketimpangan di Indonesia naik dan apa yang perlu dilakukan?
Since the 1990s, inequality has risen faster in Indonesia than in any other East Asian country apart from China. In 2002, the richest 10 per cent of households consumed as much as the poorest 42 per cent. By 2014, they consumed as much as the poorest 54 per cent. Why should we be worried about this trend? What is causing it, and how is the current administration addressing rising inequality? And what still needs to be done?
Inequality is not always bad; it can provide rewards for those who work hard and take risks. But high inequality is worrying for reasons beyond fairness. High inequality can impact economic growth, exacerbate conflict, and curb the potential of current and future generations. For example, recent research indicates that, on average, when a higher share of national income goes to the richest fifth of households, economic growth slows—whereas countries grow more quickly when the poorest two-fifths receive more.
Poorer households may lack the means to send their children to school and keep them healthy, reducing how productive they become as adults. They may also lack the means to start small businesses. These wide disparities in living standards can lead to social tension, political uncertainty and increased conflict. In Indonesia, districts with higher inequality report 60 per cent more conflict than districts with lower inequality.
Inequality is rising in Indonesia for four main reasons. First, many Indonesian children, especially those from poorer households and in rural areas, do not get the same start in life as those from wealthier families. As a result, they grow up less healthy and less skilled. One third of all differences in adult Indonesians’ living standards today can be explained by factors beyond their control: their parents’ education, where they were born, and their gender.
Second, because only a lucky few leave school with the skills valued in a modern economy, they enjoy high wages from formal jobs. Conversely, the majority of unskilled workers find themselves trapped in low productivity, low wage and informal jobs. This wage gap between skilled and unskilled workers has led to increasing wage inequality over time.
Third, ownership of financial and property assets in Indonesia is increasingly concentrated in the hands of the wealthiest. By one estimate, 50 per cent of all such assets are owned by the richest 1 per cent of Indonesians – this concentration of wealth is among the highest in the world. These individuals enjoy significant incomes from these assets, leading to more inequality. Their children inherit this wealth, growing up more advantaged and benefitting from better jobs.
And fourth, only civil servants and richer households have health and employment-related insurance and pensions, as well as significant savings. When shocks strike – whether related to illness, job loss, or natural disasters – most Indonesians are forced to borrow from friends and family, sell…
Business
Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
Southern Sun reports increased earnings, attributed to growth in the hospitality sector, while China’s property market receives a boost, reflecting economic recovery and renewed investor confidence.
Southern Sun Earnings Surge
Southern Sun has reported a significant increase in its earnings, showcasing solid financial performance amid evolving market conditions. This growth highlights the company’s resilience and adaptability to changing consumer demands, positioning it well for future opportunities in the hospitality industry.
China’s Property Market Recovery
In a bid to rejuvenate its economy, China has introduced measures to boost its property market. These initiatives aim to stabilize real estate prices and encourage investment, which is crucial for maintaining economic momentum. The government’s commitment to supporting the sector reflects its understanding of the industry’s importance in overall economic health.
Broader Economic Implications
The rise in Southern Sun’s earnings and China’s proactive approach to revitalizing its property market indicate broader economic trends. Investors and stakeholders are keenly observing these developments, as they may signal recovery and growth opportunities in both the hospitality and real estate sectors. The collaboration between local businesses and governmental actions will be pivotal in shaping future economic landscapes.
Source : Business brief | Southern Sun sees earnings rise; China boosts its property market – News24
Business
News Update: China’s Stimulus Falls Short; Sensex and Nifty Decline; Bitcoin Surges Over $82,000
Asian markets showed mixed trends amid China’s stimulus measures and disappointing inflation data. Meanwhile, Indian equities remained stable, with mutual fund inflows rising. Bitcoin surged following Trump’s presidential win.
Business Hook Daily News Podcast
Good evening! Welcome to Business Hook’s daily news podcast. I’m Avni Raja, and today is November 11, 2024. Let’s dive into the day’s top business stories.
Market Reactions and Economic Data
Asian markets experienced a mixed session as investors digested new economic data and stimulus measures from China. The Chinese government announced a $1.4 trillion package targeting local government debt, although analysts deemed it underwhelming. October’s inflation rate of 0.3% fell short of estimates and declined for the second month in a row. As a result, the CSI 300 saw a slight gain, while Hong Kong’s Hang Seng dropped over 1.5%. In India, the Sensex closed below 74,500, and the Nifty ended above 24,100, with a majority of Nifty stocks declining.
Mutual Fund Inflows and Upcoming IPOs
There’s encouraging news in the mutual fund sector, with October seeing net inflows of 2.4 lakh crore rupees, reversing the previous month’s outflows. Record equity inflows have risen to nearly 42,000 crore rupees, reflecting robust domestic investor confidence. In the IPO space, LG Electronics prepares to raise $1.5 billion by listing its Indian arm, with banks like Axis Capital involved in the process, potentially leading to an IPO as early as 2025.
Cryptocurrency Surge
In cryptocurrency news, Bitcoin has achieved new highs, surpassing $82,000. This surge is attributed to Donald Trump’s recent presidential victory, which has favored cryptocurrencies compared to more cautious Democratic approaches. Experts speculate that Bitcoin could surpass $90,000 soon. That’s all for today’s wrap-up. Join us again tomorrow, and check out the Business Hook YouTube channel for more updates.
Source : News Wrap | China Stimulus Disappoints; Sensex & Nifty Slip; Bitcoin Soars Past $82,000
Business
Henry Keswick: The Jardine Scion Who Transformed China’s Business Landscape
Henry Keswick, 86, a key figure in Jardine Matheson, passed away as the U.S. awaited election results, amid heightened tensions in U.S.-China relations during Trump’s presidency.
Henry Keswick’s Legacy
HONG KONG — The world turned its attention to the U.S. presidential election as news broke of Henry Keswick’s passing at the age of 86. A fourth-generation member of the British conglomerate Jardine Matheson, Keswick had a profound influence on the company, which has deep roots in Asia.
Navigating Challenges
Keswick’s leadership spanned significant challenges, including a strained relationship between the U.S. and China, particularly as Donald Trump prepared for his return to the White House. Under his stewardship, Jardine Matheson navigated a complex landscape in retail and real estate that dovetailed with geopolitical shifts.
A Lasting Impact
His contributions to Jardine Matheson and the broader business community have left an indelible mark. As companies reposition themselves amidst evolving international dynamics, Keswick’s legacy will undoubtedly continue to shape the future of the conglomerate he led.
Source : Henry Keswick, the Jardines scion who razed then restored China business
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