http://www.thejakartaglobe.com/opinion/porn-on-blackberry-overshadows-nastier-obscenity-in-indonesia/418028

Porn on BlackBerry Overshadows Nastier Obscenity in Indonesia
William Pesek | January 20, 2011





This column isn't a defense of porn. If a government wants to crack down on 
materials it deems objectionable, then so be it. My worry is about misplaced 
anger. Why aren't Indonesia's masses just as incensed by their leaders' failure 
to raise tens of millions out of poverty at a significantly faster rate? 



If you want to know what's afoot in Indonesia, solid clues can be found in 
buoyant retail sales, property prices and stock valuations. For an even better 
indicator, just walk the streets of Jakarta. 

Validation of Moody's Investors Service's move this week to upgrade Indonesia's 
credit rating to the highest level since the 1997 Asian financial crisis can be 
found everywhere. Swanky eateries, luxury shopping malls and hyper-modern 
office towers are abuzz with signs that Southeast Asia's biggest economy is 
going places. 

Yet a less favorable metric also deserves consideration, and it involves 
pornography. 

Research In Motion Ltd. says it will bow to public outrage and government 
requests to block porn Web sites on its BlackBerry browsers. That this issue is 
controversial in the nation with the largest Muslim population isn't 
surprising. It's disappointing, though, that Indonesia's 240 million people 
aren't equally upset about a bigger outrage: corruption. 

This column isn't a defense of porn. If a government wants to crack down on 
materials it deems objectionable, then so be it. My worry is about misplaced 
anger. Why aren't Indonesia's masses just as incensed by their leaders' failure 
to raise tens of millions out of poverty at a significantly faster rate?

The problem is institutionalized graft. It relegates all too many to the ranks 
of those living on $2 a day by keeping the benefits of rapid growth 
concentrated among the elites, not the masses. 

Attacking Corruption 

As of 2007, 29 percent of Indonesians lived on $1.25 a day, according to the 
Asian Development Bank. President Susilo Bambang Yudhoyono aims to cut 
Indonesia's poverty rate by about a third over the next four years. The nearly 
7 percent growth he expects won't be enough. He needs to attack corruption head 
on. 

Indonesia is making progress. On Wednesday, the South Jakarta District Court 
found Gayus Tambunan, a former tax official, guilty of violating 
anti-corruption laws and sentenced him to seven years in prison. Also, the 
nation's ranking in Transparency International's corruption perception index 
improved to 110 last year from 111 in 2009 and 126 in 2008. Yet Indonesia still 
ranks behind Senegal and Kazakhstan and far behind India and Thailand.

Many hoped that after his re-election in 2009, Yudhoyono would clean things up 
more aggressively. Now is the time to do just that to win investment-grade 
status. Moody's raised Indonesia's foreign and local-currency bond rating to 
Ba1 from Ba2, one step below investment grade. 

Investor Optimism 

Improvements to Indonesia's public-debt position are commendable and investors 
are noticing. On a four-nation trip last week - to Thailand, Indonesia, 
Malaysia and Singapore - Standard Chartered Plc economists polled more than 800 
clients. Those in Jakarta were by far the most optimistic about 2011.

"Cutting corruption will certainly help to further enhance the country's appeal 
in international business," says Tai Hui, the bank's Singapore-based head of 
Southeast Asian research. 

So would addressing inflation. Indonesia's central bank has kept its benchmark 
interest rate at a record low of 6.5 percent for more than a year, fanning 
overheating fears. It needs to hike rates without slamming growth. 

Yet I worry we're missing the plot here. It happened in 2006 when thousands 
took to the streets of Jakarta to denounce Playboy. Erwin Arnada is in jail for 
publishing an Indonesian version of Hugh Hefner's magazine without nudity. The 
irony is that all too many cronies of former dictator Suharto won't see the 
inside of a prison cell for the untold wealth they bilked from their people. 
Isn't massive public graft an outrage at least as worthy of anger as Playboy? 

Indonesia Beckons 

Indonesia's appeal can be seen in entertainment trends. Artists like Michael 
Buble, 311, Stone Temple Pilots, Ne-Yo and Janet Jackson are all flocking to 
Jakarta to cash in on rising consumption. Its market is a force to be reckoned 
with.

And credit where it's due. The fourth-most populous nation has performed 
remarkably since the dark days of the 1990s. Its vast natural resources and 
enviable demographics - about 27 percent of the population is under 15 - are a 
big plus at a time when developing nations are outperforming richer ones. The 
government has worked to reduce the risk of terrorist attacks.

Corruption, however, stands between Indonesians and greater affluence, and 
deserves more attention.

Indonesia isn't alone. Take Malaysia's reservations about Beyonce's 
bellybutton. In 2009, the American singer cancelled a concert there as 
activists complained about her provocative stage clothes and dance moves. If 
only Malaysians were equally aggrieved by public corruption or how the ruling 
United Malays National Organization cares more about clinging to power than 
making the nation more competitive.

Marcos Legacy 

The Philippines often sees greater outrage over author Dan Brown's "Da Vinci 
Code" series than family members of late President Ferdinand Marcos winning 
political office. His wife Imelda now sits in the House of Representatives. 
It's a wonder why fictional books and movies often raise blood pressures more. 

Objecting to porn or other forms of entertainment is indeed the purview of 
governments. I just wish the obscenity of public officials lining their pockets 
would evoke similar passions. 


William Pesek is a Bloomberg News columnist. The opinions expressed are his own.

[Non-text portions of this message have been removed]



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