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THE ARAB SPRING

How it affects the economy of Indonesia


Composed by:
Astrid Nadya Rizqita
Muhammad Yusup
Taufiq Achmaruddin

PRESENTATION OVERVIEW
What Sparked The Arab
Spring

Problems ahead

Indonesia

The Jasmine Revolution in


Tunisia

The Arab Spring: Impact on


Oil Production

The Lotus Revolution in


Egypt

Security within the region

How Indonesia can be a


model for the MENA
countries

Economy of the region post


revolution

How the Arab Spring


advantaged Indonesia in
terms of economy

The ongoing conflicts in the


MENA region: A chance for
Indonesia?

The Islamic Development


Bank and Indonesia: An
Outlook on Islamic
Economics to face the AEC

The revolutions afterwards


An analysis of what really
happened

WHAT SPARKED THE ARAB SPRING

JASMINE REVOLUTION

Popular uprising in Tunisia that protested against corruption, poverty,


and political repression.

Forced President Zine al-Abidine Ben Ali to step down in January 2011.

Unrest began after Mohammed Bouazizi, an unemployed 26-year-old,


protested against the corrupt regime by burning himself to death
outside a government office on December 17 2010.

LOTUS REVOLUTION

Also called as the Egypt Uprising of 2011.

Began on 25 January 2011.

Forced one of the regions longest-serving and most influential leaders,


President Hosni Mubrak, from power.

THE UPRISINGS POST EGYPTIAN REVOLUTION


Protests in Oman, Yemen, Egypt, Syria, & Morocco commenced in 2011.
On February 15 2011 - The Libyan Civil War - ended with the killing of Gaddafi
On 15 March 2011, protests began in Syria - still ongoing, with ISIL
On 3 June 2011, the President of Yemen Ali Abdullah Saleh was injured in a failed
assassination attempt - currently facing ongoing clash between the two major Islamic
sects

WHAT REALLY CAUSED THE ARAB


SPRING
Unemployment
Poverty
Corruption

GDP

Population growth rate.

UNEMPLOYMENT, POVERTY AND CORRUPTION


Oppressive regime - provides very minimum standards of quality of life
and social services.
Rising food inflation - millions of the poor live at or below subsistence
levels.
The highest 20 percent income group in Tunisia received 47.9 percent of
the countrys total income, while the lowest 20 percent received 5.9
percent of total income in 2009, and likewise in Egypt and Syria.

GDP AND POPULATION GROWTH RATE


In 2009, the MENA countries combined produced only 3.8 percent of the
worlds GDP.
At the same year, Arab World (AW) countries (combined) produced only
2.9 percent of world GDP.
As for Egypt, before the revolution in 2011, there was 10 percent
unemployment and 25 percent youth unemployment.

THE HUMAN DEVELOPMENT INDEX - THE BASIS OF DATA FROM


2007

PROBLEMS AHEAD

THE ARAB SPRING: IMPACT ON OIL PRODUCTION


Oil production has fallen by over 2 million barrels per day in five MENA
countries (Libya, Syria, Yemen, Tunisia and Sudan)
The loss of this production has had surprising little effect on international
oil markets.
The loss of Libyan and Sudanese exports has likely been cancelled by
increased production in North America.

REGIONAL SECURITY
Internal
1. Clashes between the
secularists vs. The Islamists
in Tunisia.
2. Chaos between the Muslim
Brotherhood supporters and
the Egyptian army.

External

Internal and External

Terrorist supporters in
Algeria as threat to the
North African security

The rise of ISIL

ECONOMY OF THE REGION POST REVOLUTION


Tunisia

Egypt

Syria

GDP per capita = 3,256.02 USD


(2012), 3,314.46 USD (2013)

GNI per capita = 10,610 PPP


dollars (2012), 10,790 PPP
dollars (2013)

The conflict has pushed millions


of people into poverty, with four
in five Syrians estimated to be
living in poverty in 2014 (SCPR).

Population = 80.72 million


(2012), 82.06 million (2013)

GDP falling to 38% (SCPR) or


48% of 2010 GDP (ESCWA).

Growth averaging a modest


0.5% in 2014.

The economy grew by 3.6% in


2012, slowed down to 2.6% in
2013, for 2014 growth remain
modest at 2.2%.
Unemployment remains at
15.3% from 16.7% in 2011, but
slightly above above the prerevolution level of 13%

THE ONGOING CONFLICTS IN THE MENA


REGION: DOES INDONESIA HAVE THE UPPERHAND?

WHY INDONESIA CAN BE A MODEL FOR THE ARAB


COUNTRIES
Indonesia....
is the most populous predominantly Muslim country in the world that has
undergone political transition from authoritarian regime to democracy.
has maintained political stability despite the ethnic conflicts and religious
riots in the first years of its political transition.
has demonstrated stable economic performance.
is an interesting case for anyone to study the interplay between Islam
and democracy.

HOW THE ARAB SPRING ADVANTAGED INDONESIA IN TERMS OF ECONOMY

The value of trade between Indonesia and Tunisia resulted in a surplus of


USD 88,7 million or approximately Rp. 887 billion. The total trade
between Indonesia-Tunisia in 2011 reached USD 106,7 million atau
sekitar Rp 1,06 trillion.
In Egypt, the trend of total value of trade with Indonesia rose up to 20,79
percent during five years back.

THE ISLAMIC DEVELOPMENT


BANK
A multilateral development financing
institution located in Jeddah, Saudi Arabia.
Founded in 1973 by the Finance Ministers
at the first Organisation of the Islamic
Conference
Began its activities on 20 October 1975.
Has 56 shareholding member states.

Major shareholders include:

Saudi Arabia (26.5%)

Libya (10.7%)

Iran (9.32%)

Egypt (9.22%)

Turkey (8.41%)

United Arab Emirates


(7.54%)

Kuwait (7.11%)

Pakistan (3.31%)

Algeria (3.31%)

Indonesia (2.93%)
(as of August 2012)

ISLAMIC DEVELOPMENT BANK AND


INDONESIA
Having IIIB in Indonesia will help build infrastructure, bring in capital and
boost Islamic banking assets.
The nation is also aiming to catch up as a finance hub with Malaysia,
where Islamic banking assets are eight times larger.
The IDB may set up its infrastructure funding unit in the Southeast Asian
nation in 2016 with capital of $1 billion.
This syncs with the aim of the current goverment's aim, that is, to boost
the development of infrastructure and to raise the rate of economic
growth by 7 percent by 2019.