Ged Carroll

Category: indonesia | 印度尼西亞 | 인도네시아 공화국 | インドネシア

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.

  • Gaytime ice cream and other news

    Gaytime Ice Cream

    Unilever under fire over Gaytime ice cream in Indonesia | PR | Campaign Asia – no idea where they got that idea, I imagine it could become a cult brand if launched elsewhere. Gaytime ice cream makes me think of a more innocent time in my life when, if I was home from school, I would be sat down with Marie biscuits and a cup of Barry’s tea by my Mum. This was a thinly veiled bribe to be quiet, which wasn’t really needed.

    The reason for this ritual would be a soap opera called Harbour Hotel and a chat show called The Gay Byrne Show. Both where on RTÉ Radio 1. Back then gay could mean happy; or in the case of Gay Byrne it was short for Gabriel. The radio meant that voices from home where beamed into our house around the clock via medium wave and long wave.

    https://youtu.be/hByFDVwiQq8

    Of course, I wouldn’t have mentioned it at my English school as there would have been an ocean of sniggers. The Muslim outrage at Gaytime also mirrors the PC revisionist view of The Flintstones ‘we’ll have a gay old time’ lyric in their theme tune. Apparently its original meaning of happy or fun, was interpreted as being intolerant of the LGBTQ community.

    Business

    The One Number You Need to Grow | HBR – original HBR article which introduced NPS

    Consumer behaviour

    Citizens’ Voices: Insights from focus groups conducted in England for the project, At Home in One’s Past. – Demos – Demos went fishing to understand the effects of nostalgia across Europe (the UK was merely the first interviews that they did).  Instead, Demos got insights into the motivations for Brexit. A lot of this lines up with what I wrote before the vote. What pops in this (subjective) qualitative feedback is:

    • The problems that the Labour Party faces with Corbyn and the general distrust of politicians in what should be ‘heartland’ seats
    • The continued credibility of Nigel Farage
    • The anti-German sentiment. The EU was seen as a German vehicle to win the war again by stealth – this has almost a Basil Fawlty quality to it. But at least some of the panelists believed it was true
    • How the political divisions around the societal change driven by Margaret Thatcher’s government reverberated into the Brexit vote

    Economics

    The continental divide? Economic exposure to Brexit in regions and countries on both sides of The Channel – Chen – 2017 – Papers in Regional Science – Wiley Online Library – interesting research on impact of Brexit across EU

    Retailing

    Amazon Is Thriving Thanks to Taxpayer Dollars | New Republic – The tech giant has received more than $1 billion in tax breaks. The government is also funding food stamps for many of its workers

    Poundland’s naughty elf campaign which riffed on British smut and the ‘Elf On A Shelf’ franchise affected consumer attitudes to the brand according to YouGov. The research is at odds with the overall positive response it got from Twitter (outside the London media-advertising industrial complex) – YouGov | Poundland’s X-rated ads generated publicity, but consumer perception has dropped

    Technology

    Noah Smith on Twitter: “1/OK, a thread about Bitcoin. (but really about nominal vs. real quantities)” – really interesting thread

    Three Thoughts on Day One at CES 2018 – not surprised that computing is moving to the edge as the network represents latency and potential unreliability – think about how cloud failure when it hit Nest devices and IoT obselescence

    Casio AL-1000 – the nixie tube display and ferrite core memory make it a thing of beauty to behold

    Web of no web

    LegalFling – Get explicit about sexual consent – blockchain start-up WTF

    Wireless

    WSJ City | Mega Chip Deal Alarms Some Chinese Smartphone Makers – OPPO and Vivo can be viewed as one company as they both have common owners and sprang from BBK. They are brands aimed at different segments of the Chinese market

    Huawei’s US market dreams ‘harmed again’ after AT&T walks away from smartphone pact | South China Morning Post  – “We have been harmed again,” Huawei’s consumer business unit chief executive officer Richard Yu said in a text message to the South China Morning Post – you can see from later articles how Huawei progressively got their act together in terms of media response though much of the coverage added a thin veneer of analysis whilst repeating the original WSJ article – China’s Huawei hit by last minute collapse of AT&T phone distribution deal | Reuters – the collapse of the deal with AT&T, first reported by the Wall Street Journal, will mean that Huawei will likely struggle to make a hit of its smartphones there as a U.S. mobile carrier would typically promote the products as well as provide subsidies and special package deals

  • Munich migration + other news

    Munich Windows migration

    And we return to Munich migration back to Windows – it’s going to cost what now?! €100m! • The Register – interesting to see this war over Munich public sector computing still being fought in the background by Microsoft two decades later. I remember working at Edelman when its open source competitive de-positioning work was just taking off. I had to write a two page document explaining what open source was. Munich was seen as one of the key battle grounds back then 

    Design

    Who Is Making Amazon Echo? (1) – Nikkei Technology Online – interesting teardown data and insights into manufacturing

    Legal

    Trump urges Justice Department to ‘act’ on Comey, suggests Huma Abedin should face jail time – The Washington Post – interesting poor information security – saving classified passwords in her Yahoo! account. More related content here.

    Lifehacks

    Boolean Query Writing: Everything You Need to Know | Brandwatch – I’ve been using Boolean for years, but many people haven’t come across it. Brandwatch have done a great guide

    Marketing

    ASA bans Captain Morgan Snapchat lens as it questions efficacy of app’s age verification policy | The Drum – surprising for a company that should know the Portman rules inside out

    Media

    BBC StoryWorks unveils new tool which measures impact of branded content | Marketing Interactive – “In addition, the product showed that the creative execution succeeded in driving a clear uplift in subconscious association between Huawei and key brand attributes such as being innovative, inspiring, environmentally responsible, and high quality. Following exposure, audiences also had a high desire to engage with the Huawei brand; brand awareness rose by 216%, brand association went up by 23% and purchase intent increased by 19%”

    Online

    How the Chinese vs Western battle of internet giants will unfold | Analysis | Campaign Asia – over the next 12 months the Western big three will find themselves head to head with the Chinese internet giants, across ecommerce, brand partnerships and most notably AI. What’s not certain is who will come out on top and whether BAT can adapt to succeed in a different environment- at least in non-Chinese Asian markets

    Security

    Massive Intel Vulnerabilities Just Landed — And Every PC User On The Planet May Need To Update – I can see the conspiracy theories starting about how this is a ‘feature’ requested by the deep state / military intelligence industrial complex – and they might be true

    Web of no web

    Maps | Mapbox – for building navigation services including turn by turn directions

  • Audrey Li + more things

    My friend and former colleague Audrey Li wrote a great rambling essay. Audrey’s family live in a small town / village in Sichuan province. Sichuan is in the west of China. The essay covers WeChat, payments, crime and the party’s fight against pollution. WeChat scams are surprisingly common for an authoritarian regime that surveils everything. Although Audrey’s Mum seems to have a similar level of technology literacy to my Mum and Dad, I am surprised she uses mobile payments. The battle against pollution has hard costs, which Audrey Li goes into – Smart Phone, No-cash Society, and Jobless — A Short Conversation with My Mother

    Line loses users in 3 of its most important countries – interesting changes in Taiwan, Indonesia and Thailand. I wonder what has eaten into LINE’s market share outside Japan? Maybe LINE has to provide a more fully featured experience like LINE Japan

    Dissecting the Jimmy Choo Michael Kors Deal | News & Analysis | BoF – The Jimmy Choo deal was part of a wider Michael Kors strategy. Michael Kors appears to be focusing on creating a collection of ‘affordable luxury’ brands, a strategy that mirrors Coach’s approach. This differs from companies like LVMH and Kering, which concentrate on high-end luxury brands. Additionally, LVMH and Kering are more established, possessing numerous brands and centralized systems to leverage their combined strengths. I find it interesting that Jimmy Choo is now ‘accessible luxury’. The comparison with Coach is very interesting, it does make one wonder two things:

    • Do American luxury brands have ‘brand permission’ to do high end luxury?
    • Given that accessible luxury and the ‘high-end luxury’ of Kering, LVMH etc. both actually rely on middle class customers for the bulk of their sales – who will win out in a downturn?

    More luxury orientated content here.

    Is Beijing getting serious about selling off state firms? | SCMP – Tencent and Alibaba buying into Unicom could be an interesting dynamic. The big would be around the extra power these groups would get. I could see China going the other way greater state enterprises rather than market liberalisation

    Kaspersky’s stellar antivirus finally goes free | PCWorld – feature limited but powerful

  • How Asia Works and reading over Chinese New Year

    I have managed to catch up on a lot of reading over the Lunar New Year festival. Joe Studwell’s How Asia Works is fascinating reading. It talks about how Korea, Japan and China have grown while their counterparts haven’t. Studwell highlights a number of factors that contribute to economic growth:

    • With an agrian economy, a market garden approach to agriculture rather than farming at scale delivers the best results. But only if rent seeking interests are removed through effective agricultural reform
    • Industry requires total mastery of technology – which is the reason why low grade heavy industry is the starting point
    • Exports planned into industrial development from the beginning and a continued relentless focus on exports is required
    • Governments are best at keeping businesses focused on total technology mastery, raising cheap finance and weeding out failures that might be a resource suck

    Studwell critiques how different countries throughout Asia have managed to process in this manner including both the strengths and the weaknesses of their respective approaches.

    It was fascinating to read how Taiwan managed to succeed in spite of nationalised industries and the challenges in China’s agricultural model.  How General Park ‘motivated’ Korean chaebols and the tragedy of development in Thailand, Malaysia and the Philippines. I can highly recommend How Asia Works.

    China’s Crony Capitalism by Minxin Pei explained the mechanism of how corrupt officials, state enterprise employees and businesspeople managed to bilk the Chinese government and people of vast amounts of money. Much of the challenge is structural. China has a federalised government with power lying at provincial, city and county level. Pei is hawkish on the country’s prospects.

    For an outside observer Pei’s research into the mechanisms, one can appreciate the challenge that the central government faces in combatting corruption and bad behaviour. President Xi’s ‘tigers and flies’ campaign to root out the worst corruption in the party and business is part of the solution; but according to Pei there is also careful structural reform required. This will only be possible through a massive aggregation of power towards the centre. More related content here.

  • The South China Sea: The Struggle for Power in Asia by Bill Hayton

    In The South China Sea; Hayton sets an ambitious goal for himself to try and unpick the claims and counter claims on territory in the area. It is a massive convoluted story that encompasses colonial powers, oil companies and a plethora of Asian countries.

    In the end no one comes out of it with glowing colours. China is easy to paint as a villain and it has played to type. But other countries and major powers have made constant mis-steps and it has become an intractable problem. The more hawkish may see the inevitability of war with China.

    On the Chinese side, it makes sense for them to escalate a fight with one of their neighbours; as a Chinese idiom puts it ‘kill a chicken to scare the monkey’ and distract from the pain of change at home.  The history is wrapped up with rising nationalism and aspirations of China and its neighbours.

    From the American perspective, it makes sense to have the war with China further away from the Homeland, so the South China sea rather than the Pacific ocean.

    Hayton doesn’t take a standpoint one way or the other leaving the reader to decide.

    From a reading perspective, the tangled nature of the claims makes the book more difficult to read in small bursts. I tried reading it as a commuting book and it took a while to get it done.

    More book reviews here. More details on The South China Sea: The Struggle for Power in Asia