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Hi, and welcome to my Indonesian expat news and real estate blog site. I hope you find the information here useful, informative, thought provoking, and perhaps good for even a chuckle or two. Please feel free to join in and participate by leaving a comment, suggestion or question. On the right side column navigation panes you will find areas for getting around on this site and some helpful links as well. To search my blog site for a topic of interest to you either use the search box in the upper left hand corner menu bar or use the blog archive on the right side column pane. Thanks for stopping by... And if you, or someone you know, is looking to buy or sell a property in Indonesia or the United States please contact me at +62.815.1000.8967

Tuesday, December 18, 2012

Indonesian Rupiah to be Re-Denominated (3 zeros at end to be cut off)

Some of my articles tend to be critical of life in Indonesia, but I also believe in giving positive and encouraging feedback as well. 



Bank of Indonesia will re-denominate the Rupiah (IDR) by cutting off 3 zeros behind the denominational bills starting in 2013.

For example: 



Rp 50.000 will become Rp 50  (approximtely $5 USD)

Rp 100.000 will become. Rp 100  (approximately $10 USD)

The current exchange rate as of the time this article was written is:   $1 USD = 9,635 IDR


This will make things so much easier!  Kudos to Bank of Indonesia for doing this!


Vehicular Travel Restrictions Into Jakarta

The newly elected Governor of Jakarta, Ir. Joko Widodo (a/k/a "Jokowi"), has enacted a new government regulation that will go into effect March 2013.

Effective in March of the New Year:

  • vehicles with even number license plates will only be allowed into Jakarta on Tuesday, Thursday and Saturday.   
  • vehicles with odd number license plates will only be allowed into Jakarta on Monday, Wednesday and Friday.
  • Sunday is free unrestricted travel for all vehicles.


Already, you can spot a huge injustice.  Those who were fortunate, by fate or other means, to already have been issued an odd number license plate will be allowed ingress to Jakarta 3 days of the week; while people who have been issued even number plates will only be allowed ingress 2 days of the week - assuming a traditional work week schedule of Monday through Friday.

For the rich and affluent (Indonesians or expats) who live in areas of Jakarta like Pondok Indah or Kemang, they can just buy another car or use another car that has the alternate odd/even license plate number as a way of circumventing this new regulation.  But those people live and/or work in Jakarta already.

But what about the less affluent people who live in outlying areas of Jakarta (such as Bekasi, Bogor, Cibubur, Citeureup, etc) and rely on vehicular transportation to work in Jakarta because there is no reliable, safe and clean public transportation system as we know it in the United States? 

As in most major metropolitan areas in the U.S., people work in the cities for the higher salaries and better job opportunities (but often cannot afford the higher rents or housing prices in the city) and must therefore live outside the city to find affordable housing.

Those people who live outside the city and must commute into Jakarta on a daily basis (and who are unfortunate to have been issued an even number license plate) will be affected and hurt the most, as they will only be allowed into Jakarta 2 days of the normal work week (Tuesday & Thursday).  You can see where this is leading....

This new ruling, like many I have seen in Indonesia, is counter intuitive and not clearly thought out.  This is going to be an absolute disaster if fully implemented in March 2013. Expect to see even further police corruption as a result of this; chaos, mass protests, demonstrations and ensuing violence erupting on the streets of Jakarta like Gunung Merapi as a result of this most ill-conceived plan.  

This is like putting a Band-Aid on a wound that requires a tourniquet.  The solution is to address and fix the GROSSLY inadequate infra-structure in and around Jakarta!

National Geographic (NatGeo) did a great piece called "MegaCities" which featured a segment on Jakarta and documented some of these woefully inadequate infra-structure issues.  The Jakarta "MegaCities" segment can be seen if you click here.   

For an idea what driving in and around Jakarta is like, click here.

The United States did do this odd/even license plate type of restriction in the late 1970's during the Carter administration; however, the restriction was on getting gasoline at the pumps and not on driving per se.  

When is the Best Time to Buy Your Airline Ticket?

 
The best time to book your flight is on a Tuesday, at least 8 weeks (2 months) before your intended trip; however, there are also last minute travel deals as well if you are prepared to up and go within days of booking your flight.  

The days of the week that you depart and arrive on also make a big difference. Generally speaking, try to avoid leaving out and returning home on a weekend day.  

The time of day can also be a factor as well. You might find that a "red-eye flight" (leaving at night and arriving in the morning - or conversely leaving at the crack of dawn and arriving at night) may give you a better fare than leaving during the middle of the day.  Be flexible with your days and times if at all possible.

Unless you're booking some last minute travel deal, booking a flight less than 2 full weeks prior to departure will be the most expensive.  Also, remember the "Goldilocks Rule" of air travel; don't book too early and definitely don't book to late.   
 

(this does not constitute an endorsement for Bank of America)



Here are some other tips:

Travel Midweek 

International travel deals are entirely based on availability and since most people travel over the weekend (Friday & Saturday); you will find the cheapest international airfare deals if you travel midweek, usually departing and returning on a Tuesday or Wednesday. 

Spend Saturday night  

Business travelers fly home on the weekend, so most discounted international airfare deals require a Saturday night stay.  So be prepared to spend Saturday at your destination (party time!)  

Don’t book too Early or Too Late  

When it comes to cheap international airfares, you have to follow the Goldilocks rule: Don’t book too early or too late. We all know that an international ticket booked with less than 3 days notice will be very expensive, but it will also be pricy if you book too far in advance. Most airlines start competing for passengers around three to four months before departure; this is known as the “Goldilocks Zone”. Search for your international airfare about three to five months out and you will be in the best position to hit the international airfare deal jackpot.  

Fly Trough the Side Door  

If your desired destination is sold out (too expensive), try flying out of a secondary international airport (Boston vs JFK or San Francisco vs Los Angeles). The same works with your destination airports; If London is sold out (expensive), try Brussels, Amsterdam or even Stuttgart. You can use the savings to book a low cost inter Europe flight to London or you can jump on the Eurostar train from Paris or Brussels.  

Fly Seasonally  

Most budget travelers never fly during high season. They take advantage of the lower airfares and decent weather during the ‘shoulder season’.  Europe’s fall shoulder season starts around September 15th and extends until the middle of November. It’s spring shoulder season starts in mid February and extends until the end of April. For the cheapest deals to New Zealand and Australia, fly in mid August, their fall and winters are quite mild and still allow you to enjoy the many outdoor adventures available Down Under. For Asia, fly from late September through November to get the lowest airfare deals. South America’s low season is anytime it’s not Christmas, New Year’s, Carnival or a school holiday.  

Use the Multiple Flights Function  

Vayama has a ‘multiple flights’ function on it’s ‘find a flight’ box. It’s a good idea to use it because it may be cheaper to fly into one city and return from another (for example; New York to London, returning from Amsterdam).  Play around with different combinations and save.  

Add a Stopover and Save  

Direct flights (those with one stop) are also cheaper than nonstop flights, particularly when you fly long haul. For example the fares for a New York to Johannesburg flight will be cheaper on airlines that add a stopover (usually in Europe, Africa or the Middle East) versus the nonstop option from New York. The same applies to long haul flights to Asia. One stop in Seoul or Taipei could shave hundreds of dollars off an India trip when compared to nonstop flights.


Sunday, December 16, 2012

Record Numbers of Americans Leaving the U.S. & Expatriating

As a result of the financial crisis and recession in the United States (which caused and set in motion a global financial crisis like falling dominoes), record numbers of Americans are leaving the United States and expatriating in other countries; either by being a "PR" (Permanent Resident) of another country, or all out denouncing their American citizenship all together.  

In what amounts to a global "Boston Tea Party", record numbers of Americans are seeking greener pastures and opportunities elsewhere in the world and are refusing to be slaves to the IRS (Internal Revenue Service). They are seeking better tax shelters or havens elsewhere in the world.  The statistics are alarming.  Thanks to groups such as America Wave, who have been tracking this "exodus" since 2005, we have a better picture on not only the root causes but also the demographics involved as well.

The process of expatriating or denouncing one's U.S. citizenship is not as simple as merely buying a one way plane ticket and leaving the U.S. It also has very serious and far reaching ramifications. See my other article, Expatriation & Income Taxes, which discusses this issue in more depth.  

(To view the text better in the charts and graphs used in this presentation, click on full screen mode in the lower right hand corner of the video window)

Tuesday, December 11, 2012

Indonesia Approves Forest Protection Plan (in Kallimantan)

Here is some great news for the orangutans! Kudos to the Forestry Minister and the government of Indonesia for this conservation effort.  Let's hope this sets a precedent or a stepping stone for further conservation efforts throughout the entire archipelago of Indonesia. 



SINGAPORE - Indonesia on Wednesday approved a rainforest conservation project that sets aside an area roughly the size of Singapore and rewards investors with trade-able carbon credits in the first of its kind to win formal backing in the country.

Four years in the making, the Rimba Raya Biodiversity Reserve will protect nearly 80,000 hectares (200,000 acres), much of it carbon-rich peat swamp forest at risk of being felled for palm oil plantations.

Russian energy giant Gazprom and German insurance firm Allianz are backers of the project, the world's first on deep peat.

A senior Indonesian official announced the approval on the sidelines of UN climate talks in Doha, Qatar. Forestry Minister Zulkifli Hasan signed a letter last week saying the project had passed all the key steps. Reuters has seen a copy.

"We hope projects like Rimba Raya will lead the way in proving that conservation can address the rural development needs of the communities and also preserve our forests for generations to come," Hasan said in a statement.

The project challenges Indonesia's often poor conservation record and lax enforcement where national parks are illegally logged. Indonesia has the world's third-largest expanse of tropical forests but these are disappearing quickly in the rush to grow more food and exploit timber and mineral wealth. Forest clearance is a major source of greenhouse gases.

By saving the forest and locking away planet-warming carbon, investors such as Gazprom will receive carbon credits they can sell for profit or use to cut their own emissions. Money from credit sales will also fund local livelihood projects.

The project area, in Central Kalimantan province on Borneo island, is brimming with rare animal species and adjoins a national park. It is designed to be a sanctuary for endangered orangutans.
Rimba Raya is part of a UN-led scheme called reducing emissions from deforestation and degradation (REDD). The aim is to show forests can pay for themselves and compete with powerful palm oil, mining and timber interests.

Sunday, December 9, 2012

The Indonesian Judiciary - Run Amok

Here is an excellent article below published in the Jakarta Post that describes the extent to which gross inequity, corruption and graft is rampant and pervasive in the Indonesian Judiciary (Courts).

When I was in Indonesia I actually had a meeting with a high ranking judge (who shall remain nameless) who wanted to set up a "referral" program with me whereby I would refer certain cases to the judge where the aggrieved party or litigant would pay a bribe for a "guaranteed outcome" of their case.  I couldn't believe what I was hearing !! I walked away from that meeting refusing to engage in any such illegal, immoral and unethical chicanery such as that.  PREPOSTEROUS & OUTRAGEOUS!! 

My editorial remarks appear in blue text.

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Through social media networks, thousands of (mostly young) judges called for a movement to save the Indonesian judiciary last month. The movement, initiated by judge Sunoto of the Aceh Tamiang District Court via a Facebook group called Rencana Peserta Aksi Hakim (Judges Action Plan), aims to save the Supreme Court from the mafia, clean up the judiciary corps, promote judges of integrity and help reform-minded judges prosper.

This movement is timely, following a series of cases plaguing the Supreme Court and the entire judiciary force, including the arrest of Corruption Court judges who were caught accepting bribes in Semarang, the ambush of a judge who was enjoying drugs and lately, the sudden resignation of a Supreme Court justice held responsible for changing a jail sentence for a convicted drug producer.

This moral call has harvested support, if not a positive response, from the public. A number of figures from the Judicial Commission, the Constitutional Court, the House of Representatives and universities have urged the Supreme Court to immediately conduct internal correction and improvement. Pressure is mounting on the court to improve its transparency, uphold justice and pay more attention to the moral integrity and capability of judges.

Public criticism and pessimism toward the country’s judiciary system apparently stem from three major problems facing Indonesian courts: low quality, inconsistency and a lack of moral integrity in judges.  (perhaps someone needs to study what is going in law schools, where ideals; principles, Code of Ethics, & Standards of Conduct should all be instilled from the very beginning!)

Concerning the first two challenges, the newly-introduced chamber system, which has come into effect since October last year, should have offered an answer. The chamber system aims to improve the quality of judgments and maintain the consistency of verdicts in similar cases. But it seems the Dutch-imported system needs much more time and a stronger commitment to take effect.

In this case, the role of outsiders is needed to help the Supreme Court maintain uniformity of judgments. (Agreed, the public needs to become more involved and demand the removal of any Justice who does not adhere to strict Code of Ethics & Standards of Conduct) In New South Wales, for example, this role is played by the local Judicial Commission whose core function is to ensure consistency in handing down sentences. This is crucial since consistency in decisions, according to former chief justice of Australian High Court, CJ Murray Gleeson, is the most important and most difficult part of the administration of justice.

As for moral integrity, which the public perceives as elusive, Indonesian judges need to act to prove their commitment to a clean justice system, something which can only start from themselves. (Wrong! It all starts in law school first) There at least four alternative actions they may take into consideration.

First, the judges have to play a role as a “broom” in their respective offices. Each judge is expected to “clean up” his or her office and prevent any irregularities from occurring. To act as a broom, they have to ensure that they themselves are “clean” before turning their attention to others. (practice what you preach)

Second, signing an integrity pact. The commitment to a clean judiciary system should be documented as proof in the form of, among others, an integrity pact. Under this pact, for instance, a judge will state his readiness to immediately step down and take punishment once she/he is found guilty of corrupt practices.

Third, playing a whistle blower role against corrupt judges. Rampant bribery and other criminal cases involving judges indicates that judges’ oversight bodies, such as the Judicial Commission and Supreme Court Supervisory Body, need more power to effectively conduct their jobs. Promoting a whistle blowing culture within the judiciary is a feasible solution.

Finally, intervention with judges’ independence, which may come from both internal and external parties, must be put to an end. Judges need legal protection from any form of intervention. A law of anti-contempt of court will help establish an independent judiciary. In this context, the Judicial Commission and Supreme Court should actively push for the enactment of the law.

Despite the challenges and weaknesses, the Supreme Court is not without its achievements. In September 2011, the Central Information Commission named the Supreme Court the most transparent among state institutions dealing with law enforcement and justice. The court is also the sixth most transparent public institution in the country.

Sebastiaan Pompe, an observer from the Netherlands, said in his article (The Jakarta Post, March 29, 2011) that the Supreme Court was the most transparent public institution in the country, given the fact that it had published tens of thousands of court judgments online. The number, Pompe said, far exceeded the verdicts published by the Supreme Courts of the US, the Netherlands and Australia combined over the past decade.  (just because you publish tens of thousands of court rulings doesn't affirm or make the Court "transparent" - you would have to go back and "audit" each case to affirm it's final case disposition and everything that transpired during the entire litigation or judicial process was "transparent", just and uniform)

It is true that corrupt judges still exist but it is not fair to judge the judiciary corps based on misconduct committed by a small number of corrupt and immoral judges. There are still many judges who are intelligent, clean and of high integrity. (You just contradicted yourself! If the majority of judges where "clean and of high integrity" then your statement should have said MOST instead of many!)

Corrupt judges must be punished severely, but make sure to give credit and reward to good judges. (I vehemently disagree! Why should we have to "reward" a person who has been appointed to a position of public trust or public office for doing the right thing which is what they're supposed to be doing in the first place!)  Let us save clean and progressive judges and protect Indonesian courts for the sake of a respected judiciary corps. (Strongly disagree again!  You should be doing this for the PEOPLE of the Republic of Indonesia and for fundamental fairness and equity in the Judiciary, and NOT do it for sake of the Judiciary itself!)

The writer is a judge at the Bekasi Religious Court and LLM candidate at Melbourne Law School, the University of Melbourne, Australia. The opinions expressed are his own. (Religious Court ?! Minister of Religious Affairs ?!  - if you had true "freedom of religion", or freedom from it, and the Gov't was more secular then all that would not be necessary, would it?)

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Here are some related articles which are clearly demonstrative of Indonesia's corrupt Judiciary:



Thursday, October 18, 2012

English to Be Omitted From Primary (Grammar) School Education Curriculum ?

Just when I though there might be hope for Indonesia in the recent news that the Pancasila will be re-instituted in schools and in government, Indonesia takes FIVE steps backwards with this implementation proposal of cutting or "trimming" the following core subject areas from primary or grammar school education curriculum:

Planned to be cut or "trimmed" are:

  • Math
  • Science 
  • Social Studies
  • Local Content
  • Self Development
  • English

I don't have a problem with cutting English (and that better be American English not UK or Australian English) from primary or grammar school education curriculum in favor of focusing on Indonesian bahasa language skills FIRST, which makes total logical sense; however, what in the #%@+ is the Education and Cultural Minister of Indonesia thinking when he proposes to cut or "trim" math and science ??!!

Click here to read full article from the Jakarta Post

 

Pancasila - Practice What You Preach !

I have written and observed in previous articles that Indonesia's "Pancasila" was a meaningless and hypocritical ideal that was not practiced, upheld or affirmed by the government and society of the Republic of Indonesia. 

The Indonesian Government bases its ruling philosophy on the Pancasila or Five Principles as laid down in the Preamble to the country’s 1945 Constitution. 

They are:

1. Belief in one God. 
2. Just and civilized humanity.
3. Unity of Indonesia (through diversity of its peoples).
4. Sovereignty of the people.
5. Social Justice.



I am absolutely delighted to read the latest news report that Pancasila courses will once again be re-instituted in schools and in government. 

Click here to read the full article from the Jakarta Globe.


Indonesians LOVE Their BlackBerry or "BB" Smartphones



Indonesians definitely LOVE their BlackBerries or “BB’s” as they are known or referred to in Indonesia. While the rest of the modern world has given up their antiquated “BB’s” and moved on to the iPhone, Android or Samsung Galaxy products; Indonesians still covet their “BB”.  You might actually be ridiculed or put to shame if you pull out a BB in America.  In  government employment or Federal civil service and corporate America (where the BB all began) and even in the White House now, the new standard or preferred device is an iOS or Android based platform device.

BlackBerry’s manufacturer, Research in Motion or RIM, will soon be unveiling a new BB product for the Indonesian market which will bring capabilities of doing e-commerce transactions directly from within the BBM platform.  E-Commerce is definitely an area where Indonesia needs much technological and cultural improvements.  But to have consumer confidence in e-commerce you need to have outstanding customer service which is woefully lacking in Indonesia. 

See full article below from the Jakarta Post for full details on the new BB 10 devices coming out soon for the Indonesia market:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

Research in Motion (RIM) CEO Thorsten Heins tickled curiosity when he hinted “think about transacting money” while discussing the future capabilities of BlackBerry Messenger (BBM) during a visit to Jakarta on Thursday.

Heins said RIM was continuously innovating new services for the messenger service to make it “a very strong platform not just for communication, but also to make it a strong platform for [e-commerce]”.

“Think about transacting money. This is one element in which you could have a huge BBM population in Indonesia transferring money from one partner to another,” he said. Heins added that the heavy usage of BBM by BlackBerry smartphone owners in Indonesia made the country “so important” as an “innovation ground for BBM”.

“So it is very important for us to be here and innovating on the BlackBerry Messenger in Indonesia,” he told The Jakarta Post during a limited press meet.

According to Heins, the next version of the messenger which would appear in the all new BlackBerry 10 platform would sport “enhanced communication activities” beyond “just texting”.

Indonesian BBM users often use the service to buy and sell goods. Sellers often create BBM groups through which they sell goods, including fashion items. Yet, buyers still have to use conventional means, such as cash transfers through banks, as payment methods.

“We certainly want to grow stronger in Indonesia and we want to contribute to the economic wealth of Indonesia. The main purpose of doing this is to keep growing our BBM communities with new services and keep them on BBM by innovating and offering new opportunities for them,” he said.

However, he declined to give further details on how exactly the messenger would support e-commerce activities. “I want to keep a few surprises for the Indonesian consumer as well,” Heins said.

He added that the messenger service was RIM’s “strong foothold” that would facilitate the company to grow beyond their current market share in the country.

“Growing from a 56 percent market share is really quite a challenge, but make no mistake, [we will be] first defending our market share and building new services,” he stated.

RIM is facing tough competition from device manufacturers, including Samsung with their Android-based Galaxy smartphones.

A study by the International Data Corporation (IDC) points out that although BlackBerry still holds the crown in the smartphone market, Android wins the operating system popularity contest with 52 percent market share.

Heins said Indonesia was among the first countries to see the BlackBerry 10, as the country was one of RIM’s biggest markets contributing 8 percent to the company’s global revenue.
RIM devices running on BlackBerry 10 will enter the Indonesian market in the first quarter of 2013, he said. “The first countries to receive the BlackBerry 10 are our most important and biggest markets, and we aim to strongly support those markets,” he said.

He added that the BlackBerry 10 platform would run on a wide range of devices, from full touch to touch-and-type hybrids. The platform would also be available on devices with various price points, he said.

“You’ll probably see within an eight-week time space, a full touch device and a QWERTY-touch device,” he said of the first few models which would hit the shelves.

He added that he had met the major telecommunication operators —Telkomsel, Indosat and XL — as well as retailers to “show them what it [BlackBerry 10] is all about, and get them excited about BlackBerry 10”.

The response, he said, had been good because operators preferred having a wide choice of platforms, apart from Android and Apple’s iOS.

“We’re very confident about launching in quarter one and getting good traction with BlackBerry 10,” he said.

Tuesday, October 16, 2012

Indonesian Haute Couture & Fashion Industry



Here’s another good article from The Wall Street Journal which highlights the creative capabilities of the Indonesian fashion industry.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

JAKARTA–A new breed of designers is seeking to blend Islamic modesty with cutting-edge style to turn Indonesia into a global center of Islamic fashion.

Associated Press - Models present creations of designer Dian Pelangi during the Indonesia Fashion Week in Jakarta in February.

The idea may seem like a bad fit for some fashion mavens, who when thinking of Islamic fashion usually picture drab black or white cloths used to cloak female beauty rather than celebrate it.

But the Islamic-fashion industry has taken off in recent years as designers look for ways to incorporate the bold colors and rich textile traditions prevalent in some Islamic societies while still maintaining sufficient modesty to adhere to Muslim mores.

Indonesia, as the world’s largest Muslim-majority country, is already one of the main players, with a local fashion industry now estimated to be worth $6.6 billion dollars a year. But local designers and retailers – led by an industry group called the Indonesian Islamic Fashion Consortium – are hoping to expand the Islamic fashion component of the industry even more by drawing up a road map to make Indonesia the “capital” of global Islamic fashion by 2020.

Right now, Malaysia, Thailand and France are among the leading Islamic fashion hubs, industry officials say.

For the past two years, Indonesia’s consortium has embarked on road shows in Europe, Asia and the Middle East to introduce Indonesian Islamic fashion designers to the outside world. Its members have toured Indonesia’s provinces and organized workshops for local entrepreneurs and designers on marketing and production.

It has also organized an annual Indonesian Islamic Fashion Fair and, for the first time last year, a national Muslim beauty pageant.

“The creativity of these young (Indonesian) designers is endless,” said Jetti Hadi, editor-in-chief of local Islamic fashion magazine Noor and a co-founder of the consortium. “Their designs are fashionable but still adhere to the Islamic rules of modesty, which means that the clothes are loose-fitting and do not reveal the shape of women’s bodies.”

The Indonesian pavilion at the International Fair of the Muslim World in Paris last year attracted more than 2,000 visitors, Ms. Hadi said. Back at home, there were 164 booths at an Islamic fashion show in Jakarta this year, compared to only 30 booths two years earlier, she said.

Meanwhile, at this year’s Muslim beauty pageant, known as the World Muslim Beauty Contest, more than 750 women participated. Women from as far away as the Netherlands, Germany and Australia and from various professions such as lawyers, engineers and athletes applied to take part in the contest, but only 20 made it to the final on September 15 and all of them except for one are Indonesian.

Participants were judged not only by their beauty, but also their ability to read the Koran in Arabic and other Islamic knowledge as well as their social activities. Most importantly, they were required to wear Muslim clothing. Judges voted environmental activist and entrepreneur Nina Septiani as the winner of the crown.

“Whenever people around the world hear about terror attacks (conducted by Islamist militants), the image of Islam is tarnished somewhat. We want to change the perception that Muslims are extreme,” said Aries Muftie, a member of the jury, and an expert on Islamic finance.

Long known as a relatively secular Muslim nation, Indonesia has seen an increase in the number of women wearing hijab, or Islamic dress in recent years, which some analysts have attributed to rising Islamic conservativeness.

But as that has happened, it has also increased the demand for designers to help add more variety to the attire. It has also led to a mushrooming of online shops and boutiques that cater to Islamic fashionistas, known locally as hijabers. Entrepreneurs use popular social networking sites such as Facebook FB +0.01%, Twitter and Multiply as well as local online marketplaces to promote their items.

A rising middle class in Southeast Asia’s largest economy has also fueled a boom in the domestic fashion industry.

The sharia unit of the state-owned Bank Rakyat Indonesia BBRI.JK +2.00% has embraced the Muslim fashion aficionados by issuing a debit card that also serves as a membership card for the “Hijabers Community,” which has 77,000 “likes” on Facebook and almost 57,000 followers on Twitter.

For aspiring entrepreneurs and designers like Jakarta-based Rika Septiana, Facebook provides an opportunity to start a business without having to rent space. Armed with a laptop and an Internet connection, Ms. Septiana started her online Islamic fashion shop in 2010, offering hand-stitched headscarves, necklaces, hand-made crochet flower brooches and other accessories popular among hijabers.

She said business is good enough that she’s thinking of giving up her other job as a secretary at a foreign company and turning to designing full-time.

“I have a lot of ideas that I have yet to put into reality. Also working from home means I can have more time with my children,” she said.

Despite the proliferation of designers, it’s still not fully clear how much of an impact Indonesian designers are having on the Muslim world at large, as statistics are hard to come by. Export numbers are difficult to estimate because most transactions with overseas buyers are conducted individually and aren’t reported to national authorities.

Nevertheless, more and more Malaysians and Singaporeans are now traveling to Indonesia to sample its styles, says Irna Dewi, a manager at Mosaict Hijabstore, a popular Islamic fashion chain that caters to middle-class customers.

Indeed, Indonesia is increasingly becoming known as a trendsetter for Muslim fashion styles, says Annisa, an Islamic fashion observer who like many Indonesians goes by one name and writes for www.fashionesedaily.com, a local fashion website.

“The current trend incorporates bold colors, bold patterns and cutting-edge designs,” she said, which together show that “Indonesian Muslim women have become more expressive and confident in hijab.” At a recent Islamic fashion show, for instance, models walked the runway wearing bright-colored tie dye blouses combined with long skirts of floral-patterned songket, a hand-woven fabric from Sumatra island.

They also put on bold accessories such as huge beaded necklaces, oversized bangles and headscarves embroidered with Swarovski stones.