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Wednesday, November 01, 2023

Perspective.

 


I’ve been sent to Jakarta to attend the Restructuring, Insolvency & Governance Conference 2023. It’s my first time in Jakarta. My previous experiences of Indonesia were confined to Bali, which was back in the days when dad was doing well enough and I was the age where having parents spend on you was normal.

So, this is my first “real” experience of Indonesia proper. On an intellectual level, I am aware that Indonesia is the “big boy” in Southeast Asia. Indonesia is easily the largest nation in our part of the world both in terms of land mass and population. In terms of market size, Indonesia is “The Place” to be.

However, whilst I am aware of the size of Indonesia, especially when compared to the rest of the region, I suffer from an emotional blinker that many Singaporeans suffer from when it comes to the rest of Asia. Given that we are by far and away the most “advanced” place in the region, our view of Indonesia (and everywhere else in the region) get clouded by a certain smugness. Ask the average Singaporean what they know of Indonesia and its likely t be “haze,” “maids,” “second wives,” and “satay.” Given that Singapore is the odd ball in the region where the Chinese are in the majority, Indonesia is also the place that gets brutal with the Chinese once every so often.

Our level of development has been such that a good portion of us, particularly the Professional class, probably feel more at ease in the West than we do with the rest of the region. Talk to a given professional in Singapore about “opportunities” in the region and they’ll probably look at you with a blank.

Its particularly obvious when you visit airports. Since I have Vietnamese family, I will say that there is no contest between Changi and the two main Vietnamese airports of Noi Bai in Hanoi and Tan Soon Nhai in Ho Chi Minh City. Let’s remember that airports are usually the first-place visitors see and so countries that want to earn tourist dollars invest in them. That’s not the case in Vietnam. The system is designed to make you miserable, especially when you’re leaving. In the case of the Vietnamese airports, there is a reason why you need to arrive two-hours before your flight. By the time the check in counter, immigration and security are done with you, you’ll be lucky to get onto your plane.

However, I’ve argued that whilst Singapore’s airport is easily the most swanky in the region just like Singapore is the most swanky place, it would be wrong to dismiss the region as a source of things we enjoy but don’t want to talk about.

My Indonesian experience actually started as checked in for my flight at the Singapore end. Indonesia requires you to fill out a customs declaration and you can do it by scanning a QR code. Once you complete the form, which takes all of five minutes (which beats any of the American forms), you get issued a QR code which you download and show to customs on arrival, which is duly scanned. The form actually has a list of flight numbers coming in from a particular destination:

 


So, the first point that should be understood is that our neighbours, who whilst less advanced than us in so many ways, are investing in modern technologies and adapting it for situations that suit their needs. As much as we talk about innovation in terms of creating new products or services, we also need to remember that innovation also applies to adaptation and this is something that does take place in third world countries.

The second point is that developing countries are slowly understanding the need to invest in infrastructure and the importance of making an impression. This is very clear when you head to the toilet at Soekarno-Hatta International Airport. The toilets are well kept and pleasant. There’s nothing like awful toilets to put off potential money spending visitors.

 




 Sure, Soekarno-Hatta isn’t as “flashy” as Changi but it’s definitely not an “S***hole” place designed to make you miserable. In fact, it’s quite an impressive place. The longest part of clearing immigration and customs was the walk.

So, the lesson is clear. Our neighbours, which may be less advanced in many ways, are actually catching up. They are hungry and willing to invest in the things that matter. So, what can we do in Singapore? I believe that we need to change our perspective and understand that our prosperity and stability are because of our region and not in spite of it. It is time for us to be the dynamo for the region rather than trying to stand apart.

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