JAKARTA (TheInsiderStories) – Good morning. As Indonesians embraced being the host of 18th Asian Games with excitement and joy and were enticed by lavish opening and closing ceremonies, President Joko Widodo was quick to move on and pursue bigger thing: hosting the summer Olympics in 2032.
In a meeting with International Olympics Committee Thomas Bach, Widodo revealed a plan to bid for hosting the 2032 games. Though no official proposals had been made, the goal of hosting the Summer Olympics in 2032 is not a distant dream.
The next Olympics will be hosted by Tokyo in 2020 and the next two host cities will be Paris and Los Angeles, which means, due to rotating scheme, there’s a good chance that the 2032 host will be cities in Asia.
The decision on 2032 host will be made in 2021 and Indonesia is likely to compete against India on its bid. However, hosting an Olympic will require a deep pocket. The average cost of hosting an Olympic is US$5.2 billion since 1960, that is higher than the amount spent on the Asian Games of Rp6.6 trillion (US$455.17 million), which still has to be audited.
There is also a question of Indonesia’s sporting excellence. Indonesia ranked 4th in the final medal standing in Asian Games with 31 gold medals, which is a record for the country. However, most of the medals come from games not included in Olympics, such as Indonesia’s martial art Pencak Silat which delivered 14 gold medals.
However, if Indonesia won the rights to host the 2032 Summer Olympics, there will be a lot of time to improve both in terms of infrastructure and sporting competitiveness.
With Asian Games over, attention will shift to other more important things. One is the inflation, which the Statistic Agency will announce the figure for August. There’s a possibility that inflation will accelerate due to strong consumers spending and also the rupiah’s steep fall.
This upside risk should be compensated by prices of oil and agricultural commodities which were relatively stable.
Last Friday (31/08), Indonesia and Australian announced the conclusion of the negotiation of the Comprehensive Economic Partnership Agreement. This will have a positive impact on Indonesia, though without overlooking the possibility on widening trade deficit with Australia.
For one, Indonesia can get cheaper imports of agricultural products from Australia like beef and wheat. On the other hand, it will open up a large market for Indonesia-made goods.
Automotive export to Australia is one area that the government should seriously look into. Australia has no domestic automotive manufacturing plants, the last one to operate closed in 2017 as demand was low, and has to import most of its cars. Australia’s car imports most come from Thailand, which has the largest automotive industry in Southeast Asia and one that Indonesia looks to emulate.
However, cars in Australia carry higher environmental standards, which Indonesian manufacturers had yet to attain. Given that Indonesia has shorter distance to Australia than Thailand, taking a larger pie on Australia’s car market should be prioritized by the government.
From the financial market, the equity market shed some of its gains on Friday but remained positive for the whole week while the Rupiah continued to weaken. The Jakarta Composite Index was down 0.01 per cent on Friday but recorded a gain of 0.83 per cent for the whole week. Meanwhile, the rupiah weakened to 14,711 per US$1 on Friday, which is closer to the lowest level since the 1998 financial crisis.
May you have a profitable day.
TIS Intelligence Team, Email: email@example.com