Halo dan selamat datang – welcome to the Indonesia category of this blog. This is where I share anything that relates to Indonesia, business issues relating to the Indonesia, the various people of Indonesia or its vibrant culture. Often posts that appear in this category will appear in other categories as well. So if instant noodle business Indofoods launched a new advertising campaign. And that I thought was particularly interesting or noteworthy, that might appear in branding as well as Indonesia.
So far, I haven’t had too much Indonesian related content here, though I recognise that it is a fast growing and important market in Asia. I am also aware of the positive impact that Indonesians have had around the world from the worlds of manufacturing to media and travel.
I don’t tend to comment on local politics because I don’t understand it that well, but I am interested when it intersects with business. An example of this would be legal issues affecting smartphone imports, versus local assembly.
The country has changed from being seen as risky to an emerging investment opportunity. The likes of Jardine Matheson have pivoted from Greater China to the worlds most populous Muslim country and home of the Komodo dragon. Its Dutch colonial heritage mixed with local culture has created a country full of dichotomies.
If there are Indonesian subjects that you think would fit with this blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.
Armani, the eponymous luxury fashion label of Giorgio Armani posted advertisements in the Financial Times this week. The advertisements harked back to Armani’s looks of the 1980s and 1990s. But what I thought was most notable about the advertisements was their promotion of made-to-measure menswear.
Armani via the FT
Armani is clearly putting its weight behind a return to the office. Presumably Armani think that this move back to the office will also mean a move to formal business dress. This doesn’t seem to be supported by what I have been seeing and is in a stark contrast to the current approach of rival Zegna. Armani have called a lot of past trends right. They were one of the first brands setting up a retail network in China. They were early to putting their catwalk shows on the web to gain a wider audience. Armani were clever in the way they approached licensing of their brand. During the 1990s Armani expanded into sportswear, watches, eyeglasses, cosmetics and home which looked prescient in retrospect.
We’ll see if Armani’s views on a return to the office pan out, I am not so sure it will be.
SVB’s First Failure – The Wire China – SVB’s Board had asked me to found a brand-new bank: the Shanghai Pudong Development Silicon Valley Bank (SPD SVB), a joint venture between SVB and the state-owned Shanghai Pudong Development Bank. The board had committed $100 million to establishing SVB’s operations in China, and I was filled with goodwill and optimism about the endeavor. Although I thoroughly enjoyed my time in China and the many friends I met there, from today’s vantage point, I firmly believe we were (and are still) being played.
For female journalists, covering China comes at a cost — Radio Free Asia – The sheer volume of vitriol targeting reporters given China’s size and the nationalistic fervor of many of its citizens can set the abuse apart. Compounding their anxiety is a fear that the intimidation is sanctioned, if not coordinated, by the Chinese Communist Party itself. “When, for example, an American female journalist gets trolled, it’s probably coming from right-wing crazies or some fringe corner of society,” said Vicky Xu, a journalist in Australia, whose reporting on abuses against Uyghurs in Xinjiang brought a flood of death threats. “The kind of role and voice they have is very, very limited.
Opinion | Xi’s visit to Putin should worry the West – The Washington Post – If you were looking for another reason why it’s important that Ukraine succeeds against Russia, consider the photos from Moscow. “The President of Eurasia” — I fear that’s the invisible caption of the pictures of Xi that we’re seeing amid the Kremlin’s golden doors and red carpets. The idea that a vast swath of the world is dominated by a China that stands so resolutely against freedom and democracy is chilling. If this alliance succeeds, we will live in a darker world
A Campaign to Remind Us That We Love New York (City) – The New York Times – The people who came up with We ♥ NYC say it is a mark for a different time. But they see parallels to the troubled era that gave rise to I ♥ NY. “We’re hopefully going to be able to cut through divisiveness and negativity” that accompanied the pandemic, said Kathryn Wylde, the president and chief executive of the Partnership for New York City, a consortium of corporations and business executives that is leading the We ♥ NYC campaign. She said that besides rejuvenating people’s spirits, “we want to remind them they can make a difference, whether it’s on the block or in the city as a whole.” She added: “We want to remind them we don’t have to maintain these divisions that have grown up between business and labor and rich and poor.” She cited surveys her group had conducted during the pandemic. “The results we’ve gotten back are people in New York want to be part of fixing what they see as broken in the city,” – Interesting choices in this. Curious to know why they didn’t rally around the previous campaign? It was atemporal in design and a personal commitment, the NY aspect of it implying inclusion? The new one has a lot of challenges: it lacks visual symmetry & balance. Ironically the original works better in digital contexts (for instance as an app logo) than the new version. The emoji heart will date very fast. The font choice I don’t understand. And what about the exclusive nature of NYC rather than the inclusive aspect of NY – even a DE&I fail. ‘Tunnel people’ are a key part of NYC too.
IPSOS noted that global inflation likely peaked in 2022 (according to IMF), and negotiations are happening at the moment between retailers and FMCG companies. Consumers will still grapple with high prices for a good while yet. Ipsos posit that the inflation creates opportunities for growing market share via innovation, with a view to eventual revenue growth.
How Chinese Companies Are Reinventing Management – If a team splits up and some members form a new team, the leader of the new team must pay a fee to the original team for its previous training of the acquired staff. Moreover, the company’s financial system automatically transfers 10% of an acquired staffer’s bonus to the original team leader every month for one year. This system encourages each team to reorganize and generate new autonomous teams
Amazon Faces Moment of Truth on Alexa as ChatGPT Steals Its Thunder — The Information – Toyota doesn’t seem to need Alexa anymore. The automaker has dropped support for an app that allowed users to operate Alexa in their cars via smartphones in 2023 editions of several of its most popular models, including the RAV4, Prius and Corolla. And according to a person close to the automaker, Toyota plans to phase out Alexa integration from the rest of its lineup in the coming years. The automaker is now focused on improving an in-house voice assistant it launched last year and is considering integrating ChatGPT, the chatbot created by OpenAI, into it
Style
The influence of cyberpunk on tech wear and functional fashion. William Gibson’s Zero History talks explicitly about the function and tech wear nature of military clothing. They are a central part of the plot line.
Technology
Amazon Faces Moment of Truth on Alexa as ChatGPT Steals Its Thunder — The Information – Toyota doesn’t seem to need Alexa anymore. The automaker has dropped support for an app that allowed users to operate Alexa in their cars via smartphones in 2023 editions of several of its most popular models, including the RAV4, Prius and Corolla. And according to a person close to the automaker, Toyota plans to phase out Alexa integration from the rest of its lineup in the coming years. The automaker is now focused on improving an in-house voice assistant it launched last year and is considering integrating ChatGPT, the chatbot created by OpenAI, into it
Taiwan
I am currently reading Chris Miller’s book Chip War. This is a great talk by Chris about many of the areas covered in the book
Is nepotism really that bad? | LinkedIn – Jed Hallam wrote an essay on nepotism and the effects that he perceives it as having on inequality. Jed tries to steer a line on nepotism somewhere between recognising that the people may have an interest and talent, whilst pointing out inequality related issues derived from nepotism. Nepotism itself is widespread, whether its impact is small or large.
Jed is concerned that nepotism can actively remove opportunities for less conventional candidates that may do better if assessed solely in merit.
Social, cultural and economic barriers
Even if nepotism disappeared, our unconscious desire to hire people more like us, can mean that candidates face challenges in social, cultural and economic realms. I don’t drink, don’t have an interest in rugby union or football. I knew no one down here and sold my car to pay my first month’s rent when I moved to London. The analogy of a viking burning his boat behind him would be apt. I didn’t, and couldn’t if I wanted to, move to London earlier than my late 20s. I had to put myself through university and build up a modest amount of money to back myself as my parents didn’t have any.
One aspect of Jed’s essay on nepotism particularly surprised me:
“the proportion of people from working-class backgrounds operating in the creative industries has more than halved since the 1970s–falling from 16.4 percent to just 7.9 percent”
The problem with nepotism is that its hard to define and work out the difference between good and bad nepotism. For instance:
I line managed some one who had gone to Harrow and had found it harder to get into a creative agency because he was considered to be too posh by interviewees. He since went on to work successfully for other agencies, inhouse at a well loved brand and now runs his own shop
Would someone following on into the family profession be a case of nepotism? A classic example from the creative industry would be Thomas Bangalter of Daft Punk, whose father is disco producer ‘Daniel Vangarde’ aka Daniel Bangalter. One could imagine how being exposed to music and a studio environment from an early age made Thomas the kind of producer he was.
Or the Arnault children taking roles in LVMH? European business often rely on intergenerational family ownership and management
Nepotism is more obvious when you have events like the recent US college scandal. The problem with debate about any hot subject like nepotism is the lack of room for nuance and good judgement. A second aspect to it is making people feel like victims of nepotism and inequality, rather than encouraging striving. Admittedly that is even made harder to do when inequality that underpins nepotism has become much more extreme.
People look for easy solves and clear lines for issues like nepotism, when what we really need are better decision making and good judgement.
Nepotism unresolved
There will always be people who feel hard done by, it wasn’t them it was X external factor. Sometimes it isn’t your time, or you didn’t make clear how good you were. Equal opportunity doesn’t equate to equal outcomes, the case in point that nepotism can learn from is currently going through the US Supreme Court. In an age of algorithmically filtered CVs I can see nepotism become attenuated rather than resolved.
V Shanshan, “Why are you Forcing me to Embrace Solidarity?” – Reading the China Dream – Weibo post from someone whose uncle had died from complications from covid the previous day, writing to express his anger and bitterness at the hectoring calls in China’s official media to “come together” and “look to the future” as China decides to live—and die—with covid. That such calls ring hollow for many Chinese makes perfect sense, since China’s mighty messaging machine seems to have turned on a dime, suddenly arguing that Omicron is no big deal and that “everyone is responsible for their own health” after insisting for years that the virus is deadly and that collective behavior was the only way to control it
A Place for Fire – The Paris Review – the primal draw of fire in the home. This reminded me of the central role of the turf and wood fuelled range in the Irish farmhouse where I spent a good deal of my childhood
Project MUSE – The Surge of Nationalist Sentiment among Chinese Youth during the COVID-19 Pandemic – Since 2012, Beijing has been promoting a strain of populist nationalism which underscores both the institutional superiority of the ruling party and the cultural superiority of being Chinese. At the international level, however, the image of both the regime and the Chinese has been marred due to the coronavirus (COVID-19) outbreak in Wuhan (December 2019–January 2020). This study examines the extent and the form that the surge in nationalist sentiment of Chinese young people has taken during the COVID-19 pandemic. Based on a questionnaire survey of 1,200 students from a sample of 20 colleges/universities in China (June–July 2020), this study shows that the respondents express high satisfaction with the state’s performance in tackling the pandemic, and that there is a substantial surge of nationalist sentiment with a high level of hostility towards other nations (e.g. the United States). Such nationalist sentiment, however, is found to express a bifurcated pattern in that young Chinese also tend to embrace the opportunity to work and study in the Western societies they ostensibly dislike – yeah, is it smart to let them in though, given Chinese laws obligating them to cooperate with the MSS if requested?
Project MUSE – Living with the State-Led Order: Practical Acceptance and Unawareness of the Chinese Middle Class – China’s expanding middle class is often found to support the regime and lack democratic aspirations. We find that one section of the middle class depends upon the state for jobs and other material benefits, and the other works for the private and foreign sectors of the country’s economy. Once separated as such, we found that the non-state middle class clearly shows lower support for the regime. Furthermore, unlike the state middle class, which registers lower democratic support, the non-state middle class shows a similar level of democratic support as other social classes. In general, however, while only pragmatically accepting the current order, both middle class groups nonetheless appear lacking practical knowledge and understanding of liberal democratic institutions such as free media and multiparty elections. The unforthcoming attitudes toward democracy might also derive from a general sense of fearing the loss of order and the other related uncertainties
Economics
The true priorities of the global elite – by Judd Legum – The New York Times’ Peter Goodman, author of “Davos Man” — a blistering criticism of the WEF and its neoliberal ideology — recently offered this brief description: The World Economic Forum is not a secret government or organized conspiracy. It is a giant business meeting, a chance for the heads of multinational oil giants to sit opposite Persian Gulf potentates — fronted by the performance art of earnest panel discussions aimed at solving the problems of the day. More than anything, Davos is a prophylactic against change, an elaborate reinforcement of the status quo served up as the pursuit of human progress. Tuesday’s WEF program included a panel with Senators Kyrsten Sinema (I-AZ) and Joe Manchin (D-WV). The pair shared an on-stage high-five in celebration of the filibuster, which has been used to block increases in the minimum wage, protections for voting rights, and efforts to maintain access to reproductive health care.
German tank manufacturer’s warning puts pressure on Ukraine’s allies | Ukraine | The Guardian – Battle tanks from German industrial reserves wanted by Ukraine will not be ready to be delivered until 2024, the arms manufacturer Rheinmetall has warned, increasing pressure on Nato allies to support Ukraine with armoured vehicles in active service instead, ahead of a key meeting this week.“Even if the decision to send our Leopard tanks to Kyiv came tomorrow, the delivery would take until the start of next year,” Rheinmetall’s chief executive, Armin Papperger, told the Bild am Sonntag newspaper. Rheinmetall, which manufactures the battle vehicle’s gun, has 22 Leopard 2 and 88 older Leopard 1 tanks in its stocks. Getting the Leopard tanks ready for battle, however, would take several months and cost hundreds of millions of euros the company could not put up until the order was confirmed
Macau gaming: Chau’s jail term warns punters and investors alike | Financial Times – It is worthwhile considering this in part of the wider picture of how China is trying deal with capital flight. It also chimes with efforts to move Hong Kong from being about ‘wealth management’ i.e. schemes to allow capital flight out of the mainland to the west to trying to pull in western money to invest in Chinese businesses. Macau was part of that process too.
Expect a clampdown on insurance policy sales people. At the moment a lot of them sell these things via WeChat with a view to providing financial services to mainlanders in a similar way to what daigou do with luxury goods from abroad. I know work at home mums that do this for Prudential as a side hustle
Auction houses have expanded like crazy in Hong Kong during the pandemic and I would expect the authorities to look at how they can shut this off or use to only import items into China rather than having them leave again. I wouldn’t be surprised if they are strongly encouraged to shutdown in Hong Kong and up up in Sanya on Hainan island instead so they stay inside the yuan firewall
Expect pressure on foreign banks on wealth management / capital flight vehicles. There maybe some latitude through mainland banks where the government can monitor the flow through back-end access into their systems
Ultimately, Singapore will be the new Hong Kong – which is happening already due to ‘run culture’ and a plethora of wealth management and family office services being provided.
Hong Kong’s financial hub is at a crossroads | Financial Times – Look for a senior job in Hong Kong these days on LinkedIn and you’re unlikely to find any openings unless you’re a speaker of Cantonese or Mandarin, or both. “That’s a big change,” confides a longtime British expat in the territory. “It’s understandable. But it’s a big change.” The evolving jobs market is just one of the visible signs of the tilt to mainland China that promises to redefine Hong Kong’s role as a global financial centre. Beijing’s growing influence on the former British colony — evident in four years of security crackdowns and tough Covid lockdowns — has raised existential questions about the sustainability of the territory’s role as Asia’s unparalleled bridgehead to global finance – yeah soon even the finance bros will go
Japan was the future but it’s stuck in the past – BBC News – Japan had emerged from the destruction of World War Two and conquered global manufacturing. The money poured back into the country, driving a property boom where people bought anything they could get their hands on, even chunks of forest. By the mid-1980s, the joke was that the grounds of the imperial palace in Tokyo were worth the same as all of California. The Japanese call it the “Baburu Jidai” or the bubble era. Then in 1991 the bubble burst. The Tokyo stock market collapsed. Property prices fell off a cliff. They are yet to recover. A friend was recently negotiating to buy several hectares of forest. The owner wanted $20 per square metre. “I told him forest land is only worth $2 a square metre,” my friend said. “But he insisted he needed $20 a square metre, because that’s what he’d paid for it in the 1970s.” Think of Japan’s sleek bullet trains, or Toyota’s “just-in-time” marvel of assembly-line manufacturing – and you could be forgiven for thinking Japan is a poster child for efficiency. It is not. Rather the bureaucracy can be terrifying, while huge amounts of public money are spent on activities of dubious utility – this says more about the persons values than about Japan. Also coming from Britain’s public broadcast service, it is ironic that Japan is at the centre of many critical global supply chains and Britain is being stripped out of them. A bit of introspection is required
Luxury Brands Beware: Angered Chinese Tourists Are Avoiding Japan And South Korea | Jing Daily – South Korea issued yellow tags for China’s inbound travelers to wear at its airports, and Japan followed suit, giving red tags to passengers coming from the country. The initiative has elicited outrage online. On Weibo, the hashtag “Japan issues red tags to mark Chinese travelers” has gathered 200 million views, becoming the fourth most trending topic at one point. Many Chinese travelers complained that they not only had to pay for COVID tests and potential quarantines in subpar conditions upon entering South Korea but also had to wear a yellow tag on their necks to identify themselves as coming from China for special inspection at airports. The tags, along with South Korean reporters snapping photos at them, made them feel like they were criminals being transferred
Good to see that we’re finally beyond the 3D printing hype bubble and its true benefits can be appreciated. This article is a good run down of the pros and cons of 3D printing in an industrial setting. In some ways it reminds me of the ‘manufacturing cells’ concept were a computer controlled machine tool with switchable tool faces would do multiple jobs and process multiple types of products in small batches.
Not all manufacturing is true Fordian production lines. Just in the same way that digital printing has been good for small run books and catalogues or printing on demand; yet ‘traditional printing’ is still used for bigger print runs – additive manufacturing will be alongside traditional manufacturing processes.
Chinese Celebrities’ Political Signalling on Sina Weibo | The China Quarterly | Cambridge Core – Recent studies have revealed how the state disciplines and co-opts celebrities to promote patriotism, foster traditional values and spread political propaganda. However, how do celebrities adapt to the changing political environment? Focusing on political signalling on the social media platform Sina Weibo, we analyse a novel dataset and find that the vast majority of top celebrities repost from official accounts of government agencies and state media outlets, though there are variations. Younger celebrities with more followers tend to repost from official accounts more often. Celebrities from Taiwan tend to repost less than those from the mainland and Hong Kong, despite being subject to the same rules. However, the frequent political signalling by the most influential celebrities among younger generations suggests that the state has co-opted celebrity influence on social media to broadly promote its political objectives
Macs In the Enterprise: A Cisco Case Study – Creative Strategies – Despite extremely high desire from employees to use Macs (66% according to a study we did last year), most IT organizations keep the Mac users in their organization at arm’s length. Offering true platform of choice matters when it comes to employee experience and employee satisfaction with their workplace, tools, and IT departments. This is exactly what Cisco found when they studied internal employees. A Cisco report on IT satisfaction of employees found satisfaction to be significantly lower when employees were not offered their platform of choice in a laptop – this bullshit has been going on my entire career, HR departments are a major issue as well
Group B rallying was the stuff of my childhood. Its history was complex. In the 1970s the motorsport governing body FIA was in dispute with formula one team owners. As a result the FIA reformed one of its own committees related to formula one called CSI, in 1978, into the autonomous Fédération Internationale du Sport Automobile (FISA). This came under Jean-Marie Balestre. He was a former journalist and president of the go-karting association.
Reorganisation
Just a few years later, FISA re-organised racing and rallying standards. It replaced groups for unmodified and modified production cars. That was largely a like for like swap. Secondly it combined grand touring (sports cars) with a race circuit only production-derived special builds class into Group B.
Group B allowed really small production runs of really fast cars with only a superficial relationship (if any) to cars that could be sold in a showroom. Regulations had a generous minimum kerb weight and allowed rear wheel drive or four-wheel drive. Audi had just launched its Audi Ur Quattro which showed the potential of four-wheel drive in a normal car package. There was no restrictions on turbo-charged engines ‘boost pressure’ – allowing for small engines in a light car package with immense power.
1984
1984 was a crucial year for Group B, when the format would form its ultimate shape.
For the first few years Audi’s production derived Ur Quattro had won loose surface events and a rear-wheel drive Lancia 037 doing better on tarmac roads. Other manufacturers were bringing cars into the championship as well including Toyota, Porsche and Opel. Peugeot brought the first car that fully took advantage of the regulations. A two seater, four wheel drive, mid-engined car in a space frame. A slew of similar competitors followed the year after, including the Ford RS200. This was the stuff my dreams were made of. My exercise books covered in sketches – side profile designs of vehicles that would be optimised for Group B regulations.
The end
1986 saw a series of fatal accidents that would result in Group B being shut down for safety and PR reasons. This created the illusion of a safer sport, but the reality was that the body count peaked some three years later in 1989, due to the way rallies were organised back then and how South Europeans conducted themselves as spectators – playing chicken in the road, dropping rocks on the road to hinder non local drivers and trying to touch cars as they went by.
This is where Richard Madden (of Game of Thrones) short film comes in capturing the difficulties of a driver managing a Group B car and dealing with trauma.
Who are the rioters who stormed Brazil’s government offices? | Financial Times – many pro-Bolsonaro truckers blocked highways across the country, choking supply chains and at one point forcing the closure of Brazil’s main international airport. These hardline backers are nationalist, socially conservative and often evangelical Christians. They accuse Lula and his Workers’ party of being corrupt and against family values, claiming the left intends to implant socialism in Brazil.
The Nokia Risk | Phenomenal World – Denmark, Israel, South Korea, Sweden, Switzerland, and Taiwan a handful of firms account for a hugely disproportionate share of both profits and R&D spending. The firms which dominate these seven economies have all been extraordinarily successful in the knowledge economy of the past three decades: Samsung Electronics in Korea, Taiwan Semiconductor Manufacturing Co. in Taiwan, Novo Nordisk (pharmaceuticals) in Denmark, and Roche and Novartis (pharmaceuticals) in Switzerland
Dim Future for Hong Kong’s Rural Industries – Varsity – the government tends to avoid underutilised plots controlled by village gentries and land banks of property developers when it tries to resume lands for urban development. – Hong Kong oligarchs still have some pull for the time being
Why Beijing Wants Jimmy Lai Locked Up – The Atlantic – Beijing has weaponized the courts against its longtime adversaries—just as Chinese state media continues to promote Lai as the poster boy of everything nefarious in Hong Kong. For both purposes, Lai has a sufficiently high profile and is convincingly rich enough to have fomented a subversive uprising; and, amid the nationalist atmosphere that prevails in Beijing, Lai also had highly suspect foreign connections that reached close to the center of power in Washington, particularly during the Trump administration. By turning to its old playbook of assigning blame to a hostile force at home backed by support from abroad, the Chinese Communist Party is falling into a trap of its own creation. Given the sentences that Lai is likely to receive for his alleged crimes, Lai could very well be imprisoned for the rest of his life. In looking for a scapegoat, Beijing may find it has created a martyr.
Indonesia
The Liem family and The Salim Group and how crony capitalism busted Indonesia in 1997/8
Innovation
How Silicon Valley was build on the back of defence research
Interesting commentary on materials development and the role that the Apollo space programme played to create a chemical and materials science golden age that had applications in other areas.
Tory MP leads warnings over UK security after Chinese spyware ‘found in Government car’ – “If these SIM cards have been duplicitously installed, then this is CCP espionage. If the SIM cards are operationally standard, then it is a failure of security not to have removed them to protect the data of our Government and sensitive Government sites.” – I wouldn’t be surprise if it was the latter rather than the former
The Long War in Ukraine | Foreign Affairs – Western strategists have sought to preempt a military standoff in two ways. Some, such as the leaders of several Baltic countries, have called for arming Kyiv with more of the heavy weapons it would need to expel Russian forces from all Ukrainian territory; others, including Mark Milley, chairman of the U.S. Joint Chiefs of Staff, have suggested that Ukraine’s political leaders should consider a negotiated solution that falls short of complete victory but would at least end the fighting
Style
Lacoste moves to collective model as Louise Trotter exits | Vogue Business – The British designer joined Lacoste from Joseph, and previously worked at premium high street brands Whistles and Jigsaw. At Lacoste, she applied her creative vision to both Lacoste’s fashion shows and general collections, bringing “real consistency” across its designs, according to the brand. “She has also accompanied the shift initiated by Lacoste towards womenswear, imagining a new wardrobe combining comfort and style,” the statement reads. Lacoste’s last fashion show was in October 2021 for Spring/Summer 2022, for which Trotter drew inspiration from her passion for cycling. Sales reached €2.5 billion in 2022, according to the brand.
Taiwan
Taiwan plans domestic satellite champion to resist any China attack | Financial Times – “Our primary concern . . . is facilitating the societal resilience, to make sure for example that journalists can send videos to . . . international viewers even during a large-scale disaster,” Tang said, adding that the system would also support “telephoning and videoconferencing — think [Ukrainian president Volodymyr] Zelenskyy’s daily addresses.” Starlink, the mobile internet satellite constellation operated by Musk’s SpaceX, has helped Kyiv maintain communications with its forces despite Russian attacks
Technology
I wrote a story for a friend – by Julian Gough – I wrote the End Poem for Minecraft, the most popular video game of all time. I never signed a contract giving Mojang the rights to the End Poem, and so Microsoft (who bought Minecraft from Mojang) also don’t own it. I do. Rather than sue the company or fight with my old friend, who founded the company and has since gone off in the deep end, I am dedicating the poem to the public domain. You’ll find it at the bottom of this post, along with a Creative Commons Public Domain dedication.
As cybercrime has become more common there has been a move towards the incidents becoming uninsurable hacks in nature. 2022 looks like a watershed moment in the move to uninsurable hacks.
Lloyd’s of London defends cyber insurance exclusion for state-backed attacks | Financial Times – Lloyds of London were looking at state backed exclusions. The parallel between a state backed cyber attack and and an act of war have clear parallels from an insurance point of view. An act of war would be exempt from most insurance policy cover. A state backed cyber attack then becomes an uninsurable attack. However, while a business could expect government retribution and likely support in an act of war, the uninsurable hack exists in a grey zone just below the threshold of government response.
The closest thing that has happened was criminal charges filed against Park Jin Hyok for the Wannacry ransomware that affected the NHS, Bangladesh Central Bank theft and the Sony Pictures hack. Russia has attempted attacks against at an oil refinery in at least one NATO country likely due to the material support that Ukraine has been receiving. NATO isn’t in a state of war with Russia and there are likely to be few repercussions and deterrents. Chinese backed hackers dismantled Nortel and helped drive the business into bankruptcy. These would all be uninsurable hacks as the risk is unmanageable in nature.
North Korea presents a particular type of risk for uninsurable hacks, using cyber crime to finance its sanction hit economy.
Companies like NSO and service companies based in India have democratised sophisticated intrusions for legal firms and business purposes. Widening the risk even further and creating a shadow economy of such scale that it creates uninsurable hacks by his own nature. Some of these law firms may even work with insurance companies in other areas; indicating the kind of perverse business incentives that drive these uninsurable hacks.
The final aspect ushering in uninsurable hacks is one of scale. Due to the economics of digital business – criminal or otherwise; they scale in a non-linear fashion. Insurance insiders see these as uninsurable attacks as they are ‘civilisation level’ attacks. Uninsurable hacks also come from an inability of the insurance industry to absorb pay-outs on a massive scale. But what can be done about uninsurable hacks since Pandora’s box has been opened?
Business
This story how Balkan organised crime groups completely compromised MSC is stunning for its audacity and impact.
Mao and markets – great talk on the permeable membrane between communist thought and capitalism.
China Makes Moves in Middle East After Biden’s Frosty Reception – An eagerness to offer “Chinese wisdom” to the Middle East’s problems is symbolic of Xi’s decade in power, during which time he has thrown off the humble shackles of his predecessors to raise his country’s stature on the international stage. Welcome or not, his offer signals to China’s domestic audience Beijing’s growing influence abroad and its capacity to advise others on successful governance. However, China’s exact role in realizing its peacekeeping recipe remains unclear. A frequent critic of U.S. military intervention in the Middle East and elsewhere, Beijing knows all too well the political, economic and military costs of becoming involved. Its willingness to do so is also a matter of constant debate. “China is cautiously increasing its presence in the Middle East, driven more by Middle Eastern states than its own ambitions,” said Jon Alterman, director of the Middle East Program at the Center for Strategic and International Studies. “China sees the Middle East as volatile and an area still dominated by the United States. They are cautious about getting sucked into the region’s conflicts.”
Mr Tape used custom modified reel-to-reel tape recorders. The reason why he can handle the reels is that its actually the tape capstans rather than the reels that are powered on a tape machine. So very different to how a cassette tape recorder works.
Henry Cavill on his love for Warhammer 40K. He is seriously invested in the universe.
Making Products in America Means Stuff Will Be More Expensive | Business Insider – cost is less clear when one takes into account carbon tax. It is also worthwhile thinking about how this could drive an improvement in product quality as well as production moves away from China. Improved quality could help reduce consumption and improve environmental impact
Ethics
The Camp Fix: Infrastructural Power and the “Re-education Labour Regime” in Turkic Muslim Industrial Parks in North-west China | The China Quarterly | Cambridge Core – Drawing on worker interviews, government documents, industry materials and images this article shows that for-profit public-private industrial parks have been built as part of a “camp fix” mechanism centred on detaining and “re-educating” Uyghurs and Kazakhs at the periphery of the nation. It argues that these industrial parks concentrate forms of repressive assistance and “dormitory labour regimes” that operate at other frontiers of Chinese state power and point these strategies of disempowerment towards a seemingly permanent, ethno-racialized underclass, producing a “re-education labour regime.” It further argues that the material infrastructures of these surveiled and policed spaces themselves are productive in enforcing the goals of the “camp fix”: the creation of high-quality, underpaid, docile and non-religious Muslim workers who are controlled through the built environment – this is the environment that large corporates have used in their supply chain. Companies such as VW Group and Anta (aka Salomon, Arc’teryx etc)
Finance
Scott Galloway breaks down a number of financial stories from 2022.
Visual Framing: The Use of COVID-19 in the Mobilization of Hong Kong Protest | The China Quarterly | Cambridge Core – messages and images posted on Lennon Walls between January and April 2020 have used COVID-19 to extend public expression of sentiment on the debates around the Hong Kong government and to further mobilize a sense of Hong Kong identity against China. The findings contribute to the understandings of how the cultural politics surrounding the pandemic became a collective action frame in the mobilization of a localized Hong Kong political identity against the Hong Kong and Chinese governments – this linking of COVID-19 to political discourse makes public health communications much more complex
Hong Kong property: developers mourn demise of ‘coffin homes’ boom | Financial Times – Analysts, including Goldman Sachs, expect Hong Kong home prices to drop by 30 per cent by the end of next year. Shares of CK Asset and Henderson Land have fallen about a tenth in the past six months. The latter trades at 10 times forward earnings, which is more than 40 per cent lower than even 2014 levels — during the last property market decline — reflecting the dire outlook. – add into this also the amount of Hong Kongers leaving the city as well
In Indonesia, ‘all-gendered’ priests are fighting to keep their traditions alive | South China Morning Post – With fewer than 40 Bissu remaining in areas across South Sulawesi, a community which once held divine status is now fighting against extinction. Many Bissu were accused of violating Islamic principles and faced persecution, but some are trying to preserve their heritage by performing cultural, shaman-like roles – the implicit influence of gulf Arab style muslim beliefs is not only about extremism but presenting a dead orthodoxy that will make Indonesia as unattractive as Malaysia has become
Read Zuckerberg’s 2019 Deposition on Facebook User Data | Business Insider – A 2017 report in The New York Times had said Cambridge Analytica previously claimed it could use data to glean voters’ inclinations. Zuckerberg appeared to address those types of news reports in his testimony to SEC regulators, saying it piqued his interest about how the company might have been using Facebook at the time. “I kind of remember having this reaction to this, which is, if they are using our systems for advertising, then I’m curious to understand if they’re actually doing anything novel that matches the rhetoric that they have, or if they’re just kind of puffing up rhetoric around what would be a relatively standard use of our ad systems,” he told the SEC in 2019, according to the newly released testimony. – to be fair Zuckerberg’s reaction reminds me of a lot of discussions that I was having with peers about Cambridge Analytica at the time
How SpaceX’s Starlink terminals first arrived in Ukraine | Quartz – Weeks before Russia invaded Ukraine, the US began scrambling to find satellite communications equipment that could keep the Ukrainian government connected to the rest of the world, new documents reveal. Those efforts resulted in thousands of satellite-antenna terminals that connect to SpaceX’s Starlink broadband internet network being sent to Ukraine. They have proven vital to Ukraine’s war effort, but became a source of controversy for both SpaceX and the US over the service’s cost, and who is paying for it. Government contractor DAI began searching for the right equipment as early as Feb. 11, according to documents Quartz obtained through a Freedom of Information Act request. Russia invaded Ukraine on Feb. 24, shocking many, but not the US government, which sounded the alarm ahead of the invasion
TikTok admits tracking FT journalist in leaks investigation | Financial Times – ByteDance, the Chinese owner of viral social media platform TikTok, has admitted it inappropriately obtained the data of users, including a Financial Times journalist, in order to analyse their location as part of an internal leaks investigation. Over the summer, four employees on the ByteDance internal audit team looked into the sharing of internal information to journalists. Two members of staff in the US and two in China gained access to the IP addresses and other personal data of FT journalist Cristina Criddle, to work out if she was in the proximity of any ByteDance employees
Software
How Amazon Uses AI To Automate Work In Its Corporate Headquarters – I was struck by how deeply artificial intelligence was already ingrained in their cultures. With in-house AI research labs that rank among the globe’s best, the tech giants were automating wide swaths of their operations and changing the nature of work within their companies. This commitment to AI in the workplace is newly relevant as powerful tools like Dall-E, ChatGPT, and their ilk make their way into the public’s hands. As access to this powerful technology spreads, nearly all companies will soon have tools like those I saw inside Amazon, Apple, Facebook, Google, and Microsoft. So work inside our companies will change as well
Asianometry does a run down of Sun Microsystems history. A few things. When I started working agency side, this was what our client websites were hosted on. Sun had a partnership with Netscape to have a great software stack. Oracle’s hardware business is the old Sun Microsystems business. Cisco routers and other manufacturers as well were basically a Sun motherboard and a raft of ethernet ports together with a look-up database that handled the routing.
Vietnam loses 25 ancient books related to culture and sovereign territory — Radio Free Asia – one of which is “relevant to Vietnam’s sovereign territory,” according to the deputy head of the literature department, Nguyen Xuan Dien. Posting on his Facebook page on Tuesday, a day after the institute’s annual meeting, Dien said the books were “extremely important for national culture.”The institute said Wednesday the books were among 35,000 volumes it had cataloged and preserved at the request of the Vietnam Academy of Social Sciences When it inspected the inventory in April 2020, for the first time in over 10 years, it discovered that 29 books were missing. Four of the books were later found on the wrong shelves. Among the books still unaccounted for are four written by scientist Le Quy Don and two books which record the precise geography, boundaries and borders related to Vietnam’s sovereign territory, according to Dien. Those two volumes could help substantiate Vietnam’s territorial claims in the South China Sea – I would guess that these books have been incinerated in China, as it helps China’s territorial claims in the South China Sea and debilitates Vietnam’s rival claims
The heat from radioactive processes within the planet’s interior causes the plates to move, sometimes toward and sometimes away from each other. This movement is called plate motion, or tectonic shift
German Chancellor Olaf Scholz declaration of a zeitenwende or epochal tectonic shift following the Russian invasion of Ukraine. Part of this tectonic shift is Germany’s desire to become a security guarantor in Europe. A lot of coverage has focused on how far away Germany is from this aspiration in terms of military preparedness and over-reliance on the very countries likely to threaten European security.
In an opinion piece Chancellor Scholz asked a rhetorical question
How can we, as Europeans and as the European Union, remain independent actors in an increasingly multipolar world?
Scholz implies that the tectonic shift also adversely affects the United States efforts to jumpstart green industries and contain a globally more aggressive China. One could argue that Scholz’s approach is business as usual. For decades, large German enterprises have encouraged the government to work with authoritarian regimes, creating a Germany highly dependent on bad actors.
Indonesia set to penalise sex outside marriage in overhaul of criminal code | Reuters – the new code could be passed by as early as next week. The code, if passed, would apply to Indonesian citizens and foreigners alike, with business groups expressing concern about what damage the rules might have on Indonesia’s image as a holiday and investment destination. – the question is if this is going to take Indonesia on a similar path of economic stagnation as Malaysia has taken?
Twitter’s decline continues. I noticed this morning that Twitter allowed me to post the exact same Twitter post twice. That isn’t something that was possible previously and I could see how it could be used for nefarious reasons.
My twitter account this afternoon when I checked it
Shein Confusion: The Fast-Fashion Giant’s New Resale Site Doesn’t Make Buying Easy — The Information – Annie tries out Shein Exchange, the e-commerce brand’s foray into the bustling resale market. On its face, the platform seems like a good idea, given the ongoing controversies over Shein’s cheap, disposable, landfill-clogging apparel. But there is something distinctly off about the brand’s effort to sell used clothes
Amazon’s new AI tool may take over work from employees facing layoffs and buyouts – Vox – the tech giant has been working for at least the last year to hand over some of its recruiters’ tasks to an AI technology that aims to predict which job applicants across certain corporate and warehouse jobs will be successful in a given role and fast-track them to an interview — without a human recruiter’s involvement. The technology works in part by finding similarities between the resumes of current, well-performing Amazon employees and those of job applicants applying for similar jobs
