Antiausterity protests continue in Indonesia

Summary

Marketplace Morning Report: Antiausterity Protests Continue in Indonesia Hosted by Marketplace, Released on February 21, 2025

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Introduction

In this episode of Marketplace Morning Report, host Nick Qureshi delivers a comprehensive overview of the latest developments in global business and economic news. The focal point of the episode is the escalating anti-austerity protests in Indonesia, which have garnered significant attention both domestically and internationally. Additionally, the report delves into key updates from China’s tech sector, Japan’s inflation trends, a BBC investigation into illegal synthetic opioids in West Africa, Germany’s pivotal election, and a brief entertainment update on the cancellation of the Australian TV show "Neighbours."

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Antiausterity Protests in Indonesia

Nick Qureshi opens the segment by highlighting a surge in anti-austerity protests across Indonesia. The demonstrations, referred to as the "dark Indonesia" protests, have intensified over the past week, with thousands of students taking to the streets to oppose the current government's budget cuts and policies.

Key Points:

• Government Policies: President Prabowo Subianto, who secured a landslide victory just four months prior, has been implementing significant budget cuts aimed at funding ambitious social programs. These programs include free health screenings, school renovations, and the highly publicized pledge of universal free school lunches for Indonesia’s 83 million children.

• Funding Shortfalls: To finance these initiatives, President Prabowo announced last month that the government must implement $19 billion in budget cuts. These cuts are affecting various sectors, including government ministries, university budgets, and infrastructure projects.

• Public Response: The austerity measures have sparked widespread dissatisfaction, particularly among students who feel the financial constraints threaten their education and future prospects. Demonstrations have been largely peaceful, although there have been occasional clashes with police, especially in East Java.

Notable Quotes:

• Nick Marsh (BBC Reporter in Singapore) [00:32]: “President Prabow has been in office since October and he got elected off the back of some pretty big promises of social programs.”

• Nick Marsh [01:25]: “The President doesn't really seem to care though. He calls those complaining little kings so you know people who think they're above the law.”

Current Situation: The protests represent a significant challenge for Indonesia, the world’s fourth most populous country. Civil servants have reportedly faced hardships such as shortages of basic necessities, electricity, and air conditioning as part of the cost-saving measures. Despite the unrest, President Prabowo maintains that the budget cuts are necessary investments for the people's welfare.

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Economic Update: China’s Tech Stocks and Japan’s Inflation

Transitioning to broader economic news, Nick Qureshi provides updates on Asia's financial landscape.

China’s Tech Stocks:

• Market Surge: China's technology sector has experienced its most substantial growth in three years, buoying the overall equities market. A significant driver of this optimism has been the robust earnings reported by the Alibaba Group, which have renewed investor confidence in the region's tech industry.

Japan’s Inflation and Interest Rates:

• Inflation Spike: Japan reported a 19-month high in inflation for January, with consumer prices rising by 3.2%.

• Interest Rate Speculation: This uptick in inflation has reignited discussions about potential interest rate hikes as the Bank of Japan considers measures to stabilize the economy.

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BBC Investigation: Illegal Synthetic Opioids in West Africa

Thomasin Ford, a BBC reporter, unveils a concerning investigation into the illicit shipment of synthetic opioids to West Africa.

Key Findings:

• Illicit Operations: The BBC traced illegal pills discovered in Ghana, Nigeria, and Côte d'Ivoire back to Aviopharmaceuticals, a Mumbai-based company. These pills are designed to resemble legitimate medications but contain tapentadol, a potent synthetic opioid, and cariciprodol, an addictive muscle relaxant banned in Europe.

• Global Impact: The combination of these substances is unlicensed for use globally, posing significant health risks and contributing to the opioid crisis in the affected regions.

Notable Quotes:

• Thomasin Ford [02:59]: “The pills contain tapentadol, a powerful synthetic opioid, and cariciprodol, a muscle relaxant so addictive it's banned in Europe.”

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Germany’s Election Campaign

A substantial portion of the episode is dedicated to Germany’s ongoing election campaign, which is now entering its final days amid shifting geopolitical dynamics.

Election Context:

• Current Leadership: The incumbent Chancellor, Olaf Scholz of the Social Democratic Party (SPD), is being challenged by Friedrich Merz of the conservative Christian Democratic Union (CDU). The debates have primarily centered on the economy, immigration, and the influence of the far-right Alternative for Deutschland (AfD) party.

• Voter Concerns: Key issues driving voter sentiment include the war in Ukraine, rising energy costs, and economic stagnation. Voters like Mark, a chip shop owner in Osnabrück, express concerns over missed investments in critical infrastructure and economic leadership.

Campaign Highlights:

• Debates: In their final televised debate, Scholz and Merz sparred over their approaches to pressing national issues, with both parties attempting to distance themselves from the successes of the AfD, which remains a significant force in the polls despite not participating in the debates.

• Public Sentiment: At a CDU rally in Vechta, enthusiastic supporters express confidence in Merz’s ability to lead Germany forward, with young party members advocating for a robust coalition government post-election.

Notable Quotes:

• Mark [04:11]: “We were always called the engine of Europe, but we're stuttering a little. We missed out on investing in important infrastructure.”

• Henning [05:44]: “I think that the CDU will be the party with the highest votes.”

• Henning [05:54]: “I think that CDU and SPD are going to do a coalition now. They fight a lot, but afterwards, when the vote is over, they will get together and do their best for Germany.”

• Alexandra [06:21]: “What Europe expects from Germany is that Germany takes more of a leadership position.”

Future Outlook: If Friedrich Merz secures the chancellorship, he will face the daunting task of addressing Germany’s longstanding economic challenges and navigating the complexities of a rapidly evolving global landscape. The potential coalition with the SPD indicates a possible shift towards collaborative governance despite ideological differences.

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Brief Entertainment Update: Cancellation of "Neighbours"

In a lighter segment, Nick Qureshi reports on the cancellation of the beloved Australian daytime drama "Neighbours," which has been a staple in the entertainment industry for decades.

Details:

• Show's Legacy: "Neighbours" has been instrumental in launching the careers of numerous Australian stars, including Margot Robbie, Guy Pearce, and Kylie Minogue.

• Finale Announcement: The show, which originally had a star-studded finale in 2022, faced cancellation by its current producer, Amazon, citing production stops slated for July in the UK.

Impact: The termination of "Neighbours" marks the end of an era for fans and aspiring actors alike, highlighting the shifting dynamics in television production and streaming services’ influence on traditional media.

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Conclusion

This episode of the Marketplace Morning Report encapsulates a wide array of significant global issues, from the socio-economic upheavals in Indonesia and Germany’s pivotal elections to pressing health crises in West Africa and notable shifts in major Asian economies. Through insightful reporting and firsthand accounts, the program offers listeners a nuanced understanding of the interconnected forces shaping our world today.

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For those seeking a detailed and engaging overview of the latest in business and economic news, this episode of Marketplace Morning Report provides invaluable insights and comprehensive coverage.

Transcript

[Nick Qureshi]

An anti austerity protest movement gathers pace in Indonesia. Live from the uk, this is the Marketplace morning report from the BBC World Service. Hello, I'm Nick Qureshi in for Liana Byrne. They've been ramping up all week and now thousands more students in Indonesia have taken to the streets. The so called dark Indonesia demonstrations are against budget cuts and other policies of President Prabowo Subianto. He swept to power in a landslide election victory just four months ago. So, so what's this all about? The BBC's Nick Marsh is in Singapore.

[Nick Marsh]

Hello. Hi, Nick.

[Nick Qureshi]

What's going on here?

[Nick Marsh]

They're about these big budget cuts that the new administration is trying to put in place. President Prabow has been in office since October and he got elected off the back of some pretty big promises of social programs. So things like free health screening, school renovations, and particularly this headline, pledge of universal free school lunches for some 83 million billion children in Indonesia. That's going to cost a lot of money. That money's got to come from somewhere. And last month President Prabowo said that the government needed to make $19 billion worth of cuts to fund these programs. And that's going to come from various government ministries, university budgets. There's a lot of students out on the streets protesting. They're not happy about that. Infrastructure projects as well.

[Nick Qureshi]

So where does this all go from here, Nick?

[Nick Marsh]

Well, so far the demonstrations have been by and large peaceful. There were some sporadic clashes with police in places like East Java. We are expecting thousands to go out into the streets. Security forces are sort of waiting and primed for action, as it were. But this is all quite a big deal in Indonesia though, you know, regardless of whether it ends up being violent or peaceful. I was reading accounts actually of civil servants in government buildings who don't have toilet paper, they haven't got drinking water, the aircon and electricity's being shut off after 4pm all to save money. It's not a great look for the world's fourth most populous country. The President doesn't really seem to care though. He calls those complaining little kings so you know people who think they're above the law. He says, look, the money isn't for government, it's for the people.

[Nick Qureshi]

Nick Marsh, thanks for updating us. Good to talk to you.

[Nick Marsh]

Thanks, Nick.

[Nick Qureshi]

All right, let's do the numbers. The biggest jump in three years for China's tech stocks boosting equities. Across Asia, a boost from earnings of the Alibaba Group has renewed optimism. While in Japan inflation hit a 19 month high in January. Consumer prices rose by 3.2%. Renewed speculation there now that interest rates will go up. A BBC investigation has found that addictive synthetic opioids are being illegally shipped to West Africa by an Indian company. The BBC's Thomasin Ford has the details.

[Thomasin Ford]

The BBC traced illegal pills found across West Africa to a company called Aviopharmaceuticals, based in Mumbai. It packages the drugs to look like legitimate medicines. The pills contain tapentadol, a powerful synthetic opioid, and cariciprodol, a muscle relaxant so addictive it's banned in Europe. This combination is not licensed for use anywhere in the world. The BBC found the pills branded with the Avio logo in Ghana, Nigeria and Cote d'ivoire. Geopharmaceuticals didn't respond when contacted by the BBC.

[Nick Qureshi]

Tapasinfo Germany's election campaign is into its closing days, overshadowed by Donald Trump's upending of US foreign policy on Europe and Ukraine. Voters living in the EU's largest economy head to the polls on Sunday. Here's the BBC's Jessica Parker.

[Jessica Parker]

Mark runs a chip shop in Osnabruck, northwest Germany. He's one of the country's undecided voters. His list of worries includes the war in Ukraine, energy costs and the economy.

[Mark]

We were always called the engine of Europe, but we're stuttering a little. We missed out on investing in important infrastructure.

[Jessica Parker]

And are you hopeful for Germany looking ahead to this election?

[Mark]

Yes. Germany is a strong nation. I believe we can do this. But we have to roll up our sleeves and make the right decisions so we can move forward.

[Jessica Parker]

But who'll move Germany forward? The frontrunner to be the country's next leader is the conservative CDU party's Friedrich Mertz. Here he is debating the current chancellor, SPD Social Democrat Olaf Scholz. In their final TV duell, they sparred over the economy, immigration and the far right Alternativa for Deutschland, blaming each other for aiding that party's success. The AFD wasn't even at this debate, but the party's persistent popularity at second in the polls has been ever present at this election. Onto a CDU rally in the town of Vechte, the party's youth wing not in a shy mood. So we're in the middle of a large sports centre. People are taking their seats, the banners and the placards are up and we're going to see who we can talk to.

[Henning]

I think that the CDU will be the party with the highest votes.

[Jessica Parker]

This is Henning Yeah.

[Henning]

I think that they will lead the next coalition. Yes.

[Jessica Parker]

Who's going to be in that coalition? Because there is potentially quite a messy scenario, isn't there, where it has to be a multi party coalition. Are you concerned about that?

[Henning]

I'm not concerned. I think that CDU and SPD are going to do a coalition now. They fight a lot, but afterwards, when the vote is over, they will get together and do their best for Germany.

[Alexandra]

I'm Alexandra rista and I'm 24 years old and I'm a given what we're.

[Jessica Parker]

Hearing from the us, the remarks that the President Donald Trump has been making, what do you think Friedrich Merz could do or would do in terms of European security in Ukraine?

[Alexandra]

What Europe expects from Germany is that Germany takes more of a leadership position.

[Jessica Parker]

Do you think Friedrich Merz, as Chancellor, he would step up?

[Alexandra]

This is what I really hope. But I also know that many Germans, they're still a bit in a bubble. I don't think they're aware of the risks that might await us.

[Jessica Parker]

The crowd cheers for their candidate but this is the easy part. If he becomes chancellor, Mr. Mertz will have to tackle Germany's deep rooted problems and react to a rapidly changing world. I'm the BBC's Jessica Parker for Marketplace.

[Nick Qureshi]

Now, just before we go, news that the TV show that launched the careers of Australian stars including Margot Robbie, Guy Pearce and Kylie Minog Oak, has been cancelled for a second time. Aussie daytime drama Neighbors had a star studded finale in 2022 when it was originally axed. Its current producer, Amazon, says it will stop production in July in the uk. I'm Nick Qureshi with the Marketplace morning report from the BBC World Service. Thanks for listening.