The President Post 15th

The President Post T H E

S P I R I T

O F

I N D O N E S I A

Display until September 12, 2010 /// N0. 15

A

s Dahlan Iskan prepares to c e l e br a t e his 59th birthday next week, which coincides with the 65th anniversay of the nation’s independence on August 17, the journalist-turned-media tycoonturned-power man has much to be proud of.

Born in Magetan, East Java, Dahlan started his career as a reporter for a local newspaper in Samarinda, East Kalimantan, in 1975, then joined Tempo magazine, one of Indonesia’s most prestigious investigative magazines, a year later.

Six years later Dahlan took over the Jawa Pos newspaper in Surabaya, lifting its circulation from 6,000 to 300,000 within five years.

He built up a media empire with The Jawa Pos group is now a media empire with a stable of more than 80 newspapers and magazines.

After building Graha Pena, one of Surabaya’s tallest buildings, in 1997, in 2002, he launched local television stations, including JTV in Surabaya, TV Batam in the island oif Batam and Riau TV in Pekanbaru.

Dahlan also happens to owns a stake in a 50-megawatt power plant through independent power producer PT Cahaya Fajar Kaltim, a joint venture between the Jawa Pos group and the East Kalimantan provincial government.

Last year President Susilo Bambang Yudhoyono, in a surprise move, personally handpicked Dahlan to lead the state electricity company PLN, which has been mired in red ink for years, mostly for being forced to sell electricity at below cost.

In 2008, PLN posted a record loss of Rp 12.3 trillion. In 2009, however, it recorded a rare profit of Rp 6.6 trillion.

This year PLN is expected to make a net profit of Rp10 trillion.

With assets worth Rp350 trillion, its return on assets is 3%, a figure that in other countries would be 10-12%.

Last month, the DPR and the government finally agreed to raise the electricity rates by 10%, down from the planned 15% increase.

At the same time, the government is supposed to raise subsidies to ensure there are no blackouts and more electricity is made available everywhere.

To PLN, however, the rise in electricity rates will only be enough to cover the shortages in the operational costs.

“When the price of fuel oil goes up, people do not get mad at Pertamina,” the outspoken Dahlan once complained.

“Yet, when electricity rates are raised, the people get upset at PLN.” “PLN is too generous. If PLN followed current rules, the gov-

www.thepresidentpost.com

Tourist Arrivals Up 14%

DAHLAN ISKAN: MAN OF POWER

More than 3.38 million foreign tourists visited Indonesia in the first half of 2010, up 14% over the same period last year, the Central Statistics Agency (BPS) said.

In June 2010 alone, more than 613.4 thousand foreign tourists visited the country, an 11.41% increase compared to the same period last year, BPS Chief Rusman Heriawan said here last week.

Compared to May, the number of tourist arrivals in June slightly rose 2.23%, he said.

Last year President Susilo Bambang Yudhoyono, in a surprise move, personally handpicked Dahlan to lead the state electricity company PLN, which has been mired in red ink for years, mostly for being forced to sell electricity at below cost.

PLN had earlier come up with a number of scenarios. If the rates went up, PLN needed about an additional Rp9 trillion in subsidies, assuming the price of fuel remained the same. So, if the tariff were to be raised by 10%, the entire subsidy of Rp55.1 trillion would be enough. If the rates were not raised, about Rp64 trillion in subsidies would be needed.

The question is whether the State Budget would be solid enough to increase that subsidy.

“Setting the basic electricity rate is purely a political decision.

There is no economic consideration or anything to do with the company’s well-being. It is entirely a political decision. Whatever the amount, it would be in accordance with political sentiments,” said Dahlan.

Initially, the electricity subsidy was Rp38 trillion, how did it jump so high?

“

PLN’s next target should be to assure that anyone who wanted electricity would be able to access it. “The government continues to strive in electricity so that the poor will be able to enjoy it,” he said Dahlan Iskan Director of State-owned Electricity Company PLN

The 2009 State Budget set the subsidy at Rp38 trillion, assuming the Indonesian Crude Oil Price (ICP) was US$65 per barrel and the exchange rate was

Rp9,500. With such a huge subsidy, the rates should have been raised to 15%.

As this could not be carried out in January and February and the price of oil went up, there were revisions in the State Budget. In other worfds, rise in the subsidy was due to changes in the ICP, the exchange rate and in postponing the rate increase. There was also the prediction that gas supplies would fall short in 2010.

The amount of subsidy is not tied to internal factors alone, however. In 2008, the subsidy was over Rp70 trillion but the following year it went down to Rp53 trillion as the price of dropped.

The subsidy is today higher because the price of oil is beginning to rise and PLN has been told not to rotate blackouts.

If the price of oil remained the same as last year’s, even without the rotating blackouts, PLN’s subsidy could drop even more.

Is it true that electricity capacity in Java is not a problem because 22,000 megawatts can be generated and its peak pressure is at 17,000MW? Says Dahlan: “PLN is unable to optimize this because it is not getting any gas. The peak pres-

BI Mulls Bank Interest Transparency Policy Bank Indonesia (BI) is considering issuing a policy that requires banks to announce the components for determining their lending rates every month.

“To what extent details be disclosed is something we are still discussing. But the components must be disclosed,” the central bank`s director of banking research and regulations, Wimboh Santoso, said here last week.

He said BI would later require

banks to disclose the structure and components for their prime lending rate every month, aimed at making banks more transparent to the public.

“Banks must be transparent to the public regarding the structure of the components for determining their lending rates,” he said.

Bank Indonesia would also give a reference for calculating risk premiums to be added to the

lending rate, he said.

“So the rate will include a risk premium for customers which is determined when the rate is fixed. Each customer has a different risk,” he said.

Wimboh said the standard for measuring the risk premium had not yet been determined. “It will be standard, meaning risk premiums will vary,” he said.

INTERVIEW

THE ECONOMY

BUSINESS

EDUCATION

Maya Soetoro-Ng:

Minister: 5.8% Growth Target for 2010 “Realistic”

RI Projected to Lead Southeast Asian Car Sales

Prof. Dr. Fasli Jalal: Hope Amidst Moral Social Degradation

Dalton Tanonaka, the anchor of “Indonesia Now” and a columnist with “The Jakarta Globe”, did an exclusive interview with the half-sister of U.S. President Barack Obama from her home in Honolulu, Hawaii, aired on Metro TV on July 24, 2010.

PAGE A3

The number of tourists visiting Bali via Ngurah Rai Airport in June 2010 reached 224.7 thousand, an increase of 12.07% compared to June 2009 or 12.68% to May 2010, he said.

The rise in the number of tourist arrivals in June raised the average occupancy rates of star-rated hotels in 17 of the country`s 33 provinces to 53.37%, up 0.73 point compared to June 2009 or 2.15 point to May 2010, he said.

On average foreign tourists stayed at star-rated hotels for 1.96 days in June 2010, down 0.04 day from June 2009, he said.

BPS also noted that the number of domestic air passengers in June reached 3.5 million, an increase of 0.43% from a month earlier.

Meanwhile, the number of foreign-bound air passengers in June rose 14.06% to 867.3 thousand compared to the previous month.

By Lukman Hakim

ernment would be in trouble.

The subsidy today is Rp55 trillion. If PLN operated normally, the subsidy can go as high as Rp77 trillion. We can let this happen, as subsidies are the responsibility of the government, not PLN,” he said.

Some factions in the House of Representatives (DPR) had earlier expressed optimism that the economic growth target of 6.6-7% for 2011 could be achieved.

PAGE A4

IDR 20,000

The first-semester car sales went beyond the preliminary projection made by sole authorized agents (ATPM).

PAGE B1

What is left to be done is “increasing moral and ethics education and make such values an integral part of a pluralistic society that upholds solidarity, one that has confidence in its own progress…”

PAGE C1

sure today is no longer 17,000 but close to 18,000MW. Our operations can generate 22,000MW, so there is a surplus of 4,000MW. “ “This is just enough, as if one generator is serviced or is in trouble, we would have a major problem. When there are repairs, the net reserve is actually 1,000MW. So any sudden surges can be dangerous.”

Less than a week after the president called Indonesia’s electricity problems a “crisis,” Dahlan said the country now had a sufficient power supply and promised an end to scheduled blackouts.

“There will be no more scheduled blackouts,” he said.

“We have made numerous improvements in the last six months, especially in regions that used to suffer blackouts due to a shortage of power such as Aceh, Belawan in North Sumatra and Manado in North Sulawesi.

“Our energy reserve in Java and the island of Bali is 19%, while in other regions it is 10%,” he said.

Dahlan acknowledged that some regions outside Java and Bali, such as South Kalimantan and North Maluku, continued to experience power shortages, but said PLN was able to channel electricity from surrounding regions to prevent blackouts.

“Indonesia has entered a rolling-blackout-free era,” says Presi-

dent Susilo Bambang Yudhoyono in Mataram, West Nusa Tenggara, last month to officially launch the government’s new electricity program.

The official launch came two days after Dahlan said the country now had sufficient power supplies to end scheduled blackouts.

Speaking in Lombok, Yudhoyono said 19 million households across the country still had no access to electricity, and emphasized the need for concrete efforts in the sector.

He said PLN’s next target should be to assure that anyone who wanted electricity would be able to access it.

“The government continues to strive in electricity so that the poor will be able to enjoy it,” he said.

The government was now buying power from private companies, using leased generators and shortening maintenance times to help PLN meet the goal of preventing scheduled blackouts.

The government intends to accelerate the first phase of the 10,000 megawatt “fast-track” electricity generating program, with a focus on building new coal-fired plants, that was scheduled for completion in 2012.

The second phase, which will shift away from coal, is intended to add a further 10,000MW of capacity by 2014.

In the January-June 2010 period, the number of domestic and foreign-bound air passengers increased 20.99% to 20 million and 25.96% to 4.5 million respectively compared to the same period last year.

Australian tourist arrivals in Bali surge 53.89% A total of 278,049 Australians visited Bali in the first half of 2010, up 53.89% from a year earlier.

“The figure put Australia in first place among top ten foreign tourists visiting Bali,” Head of the Bali Provincial Statistics Office Ida Komang Wisnu told Antara last week.

Most of the Australian tourists came by air and only 5,958 by sea, he said.

Australian tourists made up 24% of all tourist arrivals in the province in the six-month period which reached 1,180,118, he said.

Compared to the same period last year, the number of tourist arrivals in the January-June 2010 period rose 10.23%, he said.

He said the number of tourist arrivals from six of the top ten source countries saw an increase in the first half of 2010.

The number of tourists from Australia rose 53.89% to 278,049 from 180,686, China 0.33% to 98,258 from 97,930, Taiwan 13.10% to 65,589 from 57,994, the Netherlands 40.53% to 36,082 from 25,676, Britain 2.19% to 38,526 from 37,701 and Singapore 55.36% to 41,483 from 26,702.

The President Post

A2 August 12, 2010

www.thepresidentpost.com

Viewpoint Overcoming Cultural Shock Culture shock refers to the anxiety and feelings (of surprise, disorientation, uncertainty, confusion, etc.) felt when people have to operate within a different and unknown cultural or social environment, such as a foreign country.

By: Sendy Widjaja B.Comm MM MBA

U

nderstanding and living in different cultures has its own challenges.

Culture can be a source of conflict if not managed correctly. Expatriate failures working overseas have cost corporations US$2 billion/ year and as many as 30% of US multinational companies face difficulties caused by their inability to adjust to the local culture.

Managers in organizations are also members in the society; they need to minimize the irritation and maximize the potential benefits of cultural diversity by preparing to articulate how everyone sees their own culture and try to recognize how others may experience it.

If a company decides to conduct business on an international level and have its managers go overseas to work, or when a new employee enters a new organization, cultural differences between people may clash. If it is not handled properly, it can be a source of distress for the organization and will slow down the organization.

For example, an expatriate may find it difficult to adapt to a new city or country that he/ she must work in. This can be a source of a cultural clash between individuals and organizations that we usually understand as cultural shocks.

Cultural diversity can also be a source of strength if managed well. Cultural diversity within a group of people in society and organizations may complement each other and become an advantage. Often, cultural diversity is not the not the source of corporate strength but create internal conflict and becomes a shock to its stakeholders (employees, owners, surrounding society, government and others).

Culture shock refers to the anxiety and feelings (of surprise, disorientation, uncertainty, confusion, etc.) felt when people have to operate within a different and unknown cultural or social environment, such as a foreign country. It grows out of the difficulties in assimilating the new culture, causing difficulty in knowing what is appropriate and what is not.

According to the scholars at San Diego State University, California, US, the symptoms of Culture Shock are one or more of the following feelings: • Sadness, loneliness, melancholy • Preoccupation with health • Aches, pains, and allergies • Insomnia, desire to sleep too much or too little • Changes in temperament, depression, feeling vulnerable, feeling powerless • Anger, irritability, resentment,

Cultural diversity can also be a source of strength if managed well. Cultural diversity within a group of people in society and organizations may complement each other and become an advantage.

Photo: www.jumpthecurve.net

unwillingness to interact with others • Identifying with the old culture or idealizing the old country • Loss of identity • Trying too hard to absorb everything in the new culture or country • Unable to solve simple problems • Lack of confidence • Feelings of inadequacy or insecurity • Developing stereotypes about the new culture • Developing obsessions such as over-cleanliness • Longing for family • Feelings of being lost, overlooked, exploited or abused Self-recognition of one’s understanding towards another culture will be best if there is mutual understanding.

Johari’s Window What I see Open for discussion

What I do not see My blind spot

What they see Insight

What they do not see Their blind spot

Shared blind spot

Source: Adapted from Schneider and Barsoux (2003), Managing Across Cultures, Prentice Hall

Quadrant I: What I and what they see Since both understand there is a difference to be worked out, the individual and the people representing the society are open for discussion. Progress can be made in this quadrant because all involved parties realize the importance to change by opening up a discussion that will finally lead to involvement and a commitment to change and improve.

It may be quite challenging to connect with people to build a healthy relationship in the other quadrants.

GROWTH Every one of us lives in a journey toward a certain destination.

Some know where they are going, others don’t. Regardless of whether you know where you are going or not, it is generally agreed that we would like to improve on our current circumstances. Well, we must understand one thing, that to grow is not automatic.

Any growth process requires persistent energy and steadfast willpower and is abbreviated as follows: G = Growth R = Requires E = Energy W = Willpower Growth in our lives is hardly automatic; it requires processes involving energy and will power of the beholder. We grow from a baby to adulthood through a process of various learning stages.

We learn to walk; though we may have fallen, we never quit, getting

up and trying again and again to learn to take baby steps until we can walk without any assistance, and even run and jump. We may not always have pleasant experiences in our cross cultural lives, but what you have experienced helps to build our inner mental strength to withstand larger challenges in the future.

Pointers These are things that you may want to consider doing to enjoy your cultural shocks experience: 1. Stay away from undesirable and awkward situations Human instinct, when faced with a challenge, would have the tendency to either “flight” or “fight”. When we are faced with a very difficult position due to a cultural clash, we may ask ourselves to be excused for a few minutes. We deserve to have our private moments and recollect our composure. There is no sin in retreating from uncomfortable situations. But, if it is a business negotiation from which you cannot get away, you can politely tell them that you are not comfortable with the situation and let othersknow how you feel toward the awkward situation.

school in Magelang (very near to Borobudur temple), Central Java, Indonesia, came to President University and met other students from other parts of Indonesia and China, Vietnam, United Kingdom, Canada, USA, South Korea, Somalia and Malaysia who are culturally different from him.

At first, he found the experience quite daunting as he tried to communicate with other students who are culturally very different. After he joined the Cultural Diversity Class, he learnt about the Johari Window. He applied his knowledge on Johari’s window and realized that he may have “blind spots” that other students may have seen, and he also saw the “façade” of the students from overseas studying in Indonesia.

Then he took the opportunity to apply the theoretical concept from Lewis Morgan’s pyramid of Human Development to help him understand the background of his overseas friends. These theories help him to understand and accept his cultural heritage and respect the cultural background of his friends.

2. Learn to understand social customs After regaining your composure, you can quickly mix and match the knowledge you learnt and put them into practice in your mind.

For example: Kharis Desenalio, a student just entering university life from a high

3. It takes the law of process to work We need to understand that understanding culture is like investing in the stock market.

We cannot be successful if we hope to make a fortune in a day. It is not an overnight process. To understand other cultures we need to apply the the-

ories of navigating the seas of international business where we need time to understand the values and beliefs that are the culture’s value. One would need an even longer time to be able to understand the assumptions of the society by inference and experiencing the culture.

4. Find a comfortable place and spend time there When living in another culture, it is equally important that you try to enjoy the surrounding places and be grateful with the state you are in, rather than constantly complaining or fantasizing you are planning to go to another place.

Indonesians are very hospitable by nature due to the vast amount of land size with very diverse cultural backgrounds.

Hence, Indonesians are usually very tolerant toward cultural differences.

5. Respond healthily Antipathy, bitterness, unforgiving and hating yourself can cause disruptions in physical immunity, rheumatoid, arthritis, lupus and double sclerosis.

These are extreme cases resulting from the negative spillover of interaction with other human beings with different mind frames shaped by different cultural backgrounds. Dr. Colbert shares steps to develop healthy responses when dealing with deadly emotions that may also be caused from cultural shock.

• Identify and communicate

with your heart You can embrace yourself and encourage yourself with positive words. Look at the positive side of any situation and be grateful for what you have accomplished and succeeded to do. By sending positive responses to your brain, the brain will send positive signals to the heart, creating a harmonious and peaceful state of mind and health.

• Develop a sense of humor Dr. Lee Berk from Loma Linda University Medical Center found out that during laughter, the following reactions happen in our body: • It increases growth hormones by 87%, • Increases gamma interferon which is the forefront of human immunity • Helps and protects the respiratory system from infection.

• Produces antibodies directly attacking dangerous viruses.

• Increases the protein complementary acting as a catalyst in antibody reactions.

Therefore laughter is a good recipe to reduce negative emotions. Laughing is also known to be contagious. If you smile, others will smile back at you. That is one free and effective way to alleviate cultural shock.

• Forgive others and yourself As humans we are not perfect, we may have offended others, more often unintentionally than intentionally. With that understanding, we need to forgive others that have offended us in any cultural shocks experience.

Like smiling, you smile to others, others will smile back to you. When you forgive others, others will forgive you as well. Forgiveness set you free from the trap of the enemy which is our own ego.

Conclusions Cultural differences are inevitable, as we are all different and unique. Cultural clashes may occur in front of our face, but our response will make all the difference in either causing us to succeed or to fail.

The writer is author of “Business Culture in Indonesia, Cross Cultural Business” and teaches at the Faculty of Business Administration & International Business – President University

The President Post

www.thepresidentpost.com

August 12, 2010 A3

Interview MAYA SOETORO-NG:

“I Can Contact My Brother Barack Obama Whenever I Want” INTRO: She grew up an international child, the only daughter of an Indonesian father and an American mother. Born in 1970, she would live between two worlds enjoying the landscape and culture of West and Central Java, then finishing her education in one of the most prestigious schools in the U.S. Now busy with an academic career and two young daughters, Maya Kassandra Soetoro-Ng also makes time to keep in close contact with her big brother who happens to be the president of the United States, Barack Obama.

www.flickr.com/photos/textilemuseum

try, with even footing and openness.

But Indonesia’s special?

Of course.

What do you think of the public conjecture, “Maya Soetoro-Ng would be the perfect U.S. Ambassador to Indonesia?”

Informal ambassador, maybe. You know, I’m not a very formal person. I don’t like involving myself in politics in a hypervisible way. www.amazonaws.com

Dalton Tanonaka, the anchor of “Indonesia Now” and a columnist with “The Jakarta Globe”, did an exclusive interview with the half-sister of U.S. President Barack Obama from her home in Honolulu, Hawaii, aired on Metro TV on July 24, 2010.

that chipping away that was important for him to do so that he could move on and not be sentimental about his paternal inheritance and really figure out what he was going to do next and how was he going to without bitterness or anger or acrimony. Kind of say goodbye to his father. I think that was a significant journey.

Excerpts: www.csus.edu

DT: You are the closest living relative to the most powerful person in the world.

Do you stop and think about that every now and then?

MS: Yeah, sometimes but that can be overwhelming. Fortunately he has not changed, I’ve said that before but it’s true. But as it is, I often forget that I am the sibling to the most powerful man in the world or one of them at least and I consider myself to be simply Barack Obama’s sister in a more personal sense.

If he did change, would you, like, tell him?

I would absolutely tell him, probably tearfully, and with worry in my voice. But he hasn’t and consequently our relationship involves talking about the girls and our family and about politics in the same way you talk politics with your friends with a sense of mutual concern and sometimes surprise and sometimes a sense of satisfaction for what has transpired. Sometimes a sense of frustration, but we don’t talk about politics with any kind of sort of top-down seriousness.

You’re not making policy with your brother?

Not making policy with my brother at all.

What exactly are you doing right now? People are not sure.

Well I’m continuing to do work as a public school advocate in various ways. So I’m on a bunch of non-profit boards and I work with afterschool programs which are granted free to public schools here, several schools. And I help develop the curriculum and support those programs.

I also work with the museums and the Children’s Discovery Center to bring interesting and provocative programs to bear.

And I do a lot of conflict resolution and peace education, working with school and individuals to put together peace gardens.

Mostly here in Hawaii?

Mostly in Hawaii, but with international reverberations. And I’m also working on building a non-profit to share educational best practices for the 21st century. None of that is paid. I work as an education specialist for the East-West Center, and that basically involves doing educational exchanges between Asia and the United States, putting on teacher workshops and student workshops, encouraging dialogue and sort of grassroots diplomacy. And I’ve been doing that since our return from D.C. in February.

After your brother’s inauguration in January 2009, you moved to Washington. How long did you spend there and how was that time spent?

I visited Washington and some people in newspaper reports, suggested that I have moved there

“

with an intention to stay. But I regarded it as a visit; my husband had a visiting scholar position at the Smithsonian. He’s now actually sort of acting interim director for the Asia Pacific American program. So he’ll be working there this summer and bringing in his fresh perspective. And I was working on my peace education book, which is basically a narrative journey of the class that I taught in the last three years.

Fortunately he has not changed, I’ve said that before but it’s true. But as it is, I often forget that I am the sibling to the most powerful man in the world or one of them at least and I consider myself to be simply Barack Obama’s sister in a more personal sense.

Of course you spent as much of the time you could with your brother.

As much time as I could with my brother. He is and was tremendously busy, but we had our rituals, meals shared and Scrabble games played. We actually spent the end of the summer traveling with them. So we got to spend a lot of the time with the kids, while we were still on summer break.

Once the routines began, we found a nice kind of rhythm, we had an apartment near the National Cathedral, and I got to spend time in the Smithsonian museums.

Your first schooling was in Hawaii?

My first schooling was in 1981 when we moved from Semarang to Jakarta and I went to Jakarta International School from 1981 to 1984. In Jogja and Semarang and in Jakarta when I was very young, mom schooled me very often with a correspondence course.

So my daily life was spent with Indonesians speaking Indonesian and then my sort of academic life, the life and time spent within the pages of books was in the English language.

cousin) Trisulo’s home. And we spent a lot of time, I think, thinking about the past, but also preparing for the future. I think he knew that he was going to pass away very soon.

Your parents, Lolo Soetoro and Ann Dunham, were divorced in 1980, when you were 10.

Where were you and was there any thought of staying in Indonesia with your father?

Although it was 1980 when they became divorced, the truth is you know, for quite a number of years prior to that, we didn’t live steadily with my father and I had become my mother’s child.

I loved my father and spent holidays with him and birthdays with him. But he also had a second wife and two children. And we didn’t really take part in family gatherings in the same way after the divorce. And there was really no question that I would follow our mother.

How often do you talk to your brother? Can you just pick up a phone and call him direct?

Your dad passed away in 1987, buried in Jakarta. What would he have thought about how things turned out with you and your brother?

I last saw him in 1986 and he and I talked for a long time. He was in the hospital when I arrived in Indonesia and he came out and spent some time with me in (my

That’s more than the Russian president can do.

It is. But I, I am his sister and quite importantly, we have an understanding. He asked me in the beginning of his journey to trust him, to always do his best job.

And I do trust him and I have trusted him. So I don’t come to him with requests or complaints

He was actually more a father figure for your brother than your brother’s real father?

He was, and he loved my brother very much. And interestingly enough, my brother I think knew him better that I did because I was very young. I think he really enjoyed having a young man in his life.

or challenges, so knowing that I think has helped him to feel the full force of my love and embrace and make our relationship comfortable.

I think there is a certain sanctity of family that has to be preserved. There aren’t many moments that allow you to sit and relax and recline and sigh and drop your guard, and I think that family becomes really important to preserve those moments.

Your mother, Stanley Ann Dunham, it’s fair to say, was the most famous family member in Indonesia.

She loved the people of Indonesia, she loved the food, she loved the batik, she loved all the arts, she loved the cacophony, she

be a proper Javanese.

Now your brother writes about the major influence she had on his life, and I wonder could he not have written a book titled “Dreams from My Mother” as well?

Well, after she passed on he wrote a new preface to his book, a new introduction for the reprint of “Dreams from My Father” and that’s what he said.

Had he realized he had so little time, he would have talked about the much more significant influence that…

She had on him.

Right, that she had on him.

He knew it but the public

I think that there are moments when he speaks Indonesian to me, when he recalls vividly the images and textures and sounds of that place. But I think they are also great depths to his memories and he’s also spoken of how Indonesia taught him tolerance and he felt really embraced by Indonesians.

I can contact him whenever I want. He’s very good about making sure that I feel connected

loved all of her travels and journeys and the many individuals who became part of her extended family.

She loved the fact that she was able to do things effectively that, she was quite fluent in Indonesian more so than I am or ever was. She had a certain knowledge of really nuanced cultural practices and expectations. And I think that helped make her confident and enjoyed working there because she understood how to

didn’t know it.

He knew it and he knows it still and he often says the best part of him is his empathy, his sense of service, his tenacity and work. His strong ethics, his moral compass that all of that comes from her. I think that it was really important on the other hand for him to spend some time excavating and understanding his father’s life and making sure that he mined those depths as well.

I really do feel it that it was

Do you often get called First Sister?

I do, occasionally. It’s fine, maybe I should embrace it. Get a t-shirt or something.

Are you coming to Indonesia with your brother?

I really hope to, I’m not absolutely sure.

Chances are you will.

Yeah.

And as far as you know, Jakarta and Bali are on the schedule… same kind of plan?

Yes. What are your earliest memories of your brother?

When I was two, not one, we came and traveled to U.S. and traveled to Yellowstone and we traveled through various parts of the West Coast like San Diego.

[Then] mom and I went back to Indonesia very briefly and then we came back and I lived in Hawaii from ‘73-‘76 at the age of three to six with mom and Barack. So we lived together, we weren’t apart during those years.

It was only in 1976 when I was 6 and my brother was 15 and starting high school when I went back to Jogja and Barack stayed here with our grandparents. And that’s because he had been spending his middle school years in Hawaii and made friends, involved in sports and had not been studying in Indonesia and was concerned about making that transition again History would be different if he went back to Indonesia.

If he had gone back it would have been different, he would have developed a different relationship. Perhaps one that was more permanent.

Your brother comes to you and says, “Maya, we need you in Indonesia, I think you’re the perfect representative.”

That would never happen. Let me just say this. I was on an unpaid voluntary commission to help select White House Fellows.

But there was some concern even though it was unpaid and voluntary, so I stepped down.

We have to be very careful, this is a different era. We are not in the same place in this nation as we were even 20 years ago. I think that certainly we have to be a leader in the United States to make sure that there aren’t worrisome acts of generosity and the conferring of power. You know, people in Indonesia don’t understand sometimes.

Well, it’s a different kind of place and society. But that’s what people are saying. They would be so happy and proud.

Thank you for that vote of confidence. Thank you to the people of Indonesia. But what I would like to do, I’m working at the East-West Center, and I have Fulbright students who are going to Indonesia. I’ve put proposals.

The East-West Center has done work with pesantren teachers and doing educational exchange. I would like to spend time in Indonesian schools and among its children and get to know the current shape of education there.

Do you sometimes think what an incredible thing this is, two people who spent a good amount of their childhoods in Southeast Asia with a different language, different culture and majority religion, being in positions to truly influence the world in your own ways.

I think that we all have a good bit of power that goes unused in life. I think that it’s remarkable that my brother has managed to really carve out a path for himself.

It’s an incredible path.

It’s an incredible path that allows him to utilize more of his brain and energy and his heart than most people get to do in most in their lifetimes. And he’s working very hard in a good and just and thoughtful use of himself and I ask the world’s support for him.

There are some who say in Indonesia that too much is made of Barack’s time in that country. But doesn’t his affection and nostalgia for that country and people come through all the time?

I think it does, it certainly does privately. I think that there are moments when he speaks Indonesian to me, when he recalls vividly the images and textures and sounds of that place. But I think they are also great depths to his memories and he’s also spoken of how Indonesia taught him tolerance and he felt really embraced

by Indonesians.

Your program at the University of Hawaii East-West Center makes you an equally important position.

Not equally.

I think the public has to understand that politically, he has to downplay certain things and play up other things.

He cannot play favorites. You know, it’s good to encourage and want good U.S.-Indo relations.

There’s nothing wrong with that.

But you have to, if you are leader of the United States, you have to think of the long stretch and arc of history. You have to be a leader that negotiates with every coun-

But in this instance Indonesia and the United States understand one another better and cooperate on things like education and climate change and the myriad problems we have to solve. And I think that I am one person that is eager to make some steps in the direction of cooperation. I think there are so many people that are out there who are and will contribute equal skills and talent to that project.

Well, in your own field. He (Obama) can’t go to the schools and teach as you can because you’re the professional.

It is true that I’ve been given some wonderful opportunities. I think that the great challenge to figure out how to use all the human resources as well as personal resources to do some real good in both of our nation’s schools and to help all of the countries

The President Post

A4 August 12, 2010

www.thepresidentpost.com

The Economy ECONOMIC UPDATES Finance Ministry aims at Rp743 trillion tax revenue

Agus Martowardojo

Finance Minister Agus Martowardojo said the targeted state revenue in the 2010 revised state budget from taxation and customs duties was set at Rp743 trillion.

“This year`s revised state budget is expected to reach Rp743 trillion,” Agus said when submitting a report as President Susilo Bambang Yudhoyono was giving directives to the taxation and customs duties directorates general at the State Palace in Jakarta

last month.

Agus said the 2010 target was expected to be higher than last year`s state revenue of Rp619 trillion, for which the director general is making special preparations and improvements, including maximizing the income of the taxpayers.

RI targets Chinese coffee drinkers Indonesia is aiming at young Chinese coffee consumers whose market is expected to reach 350 million people, a deputy minister said.

“The demand for coffee of this group grows 17% per annum,” Deputy Finance Minister Bayu Krisnamurthi said on the sidelines of his visit to the Indonesian Coffee Exhibition in Shanghai World Expo, Shanghai, China, said last month.

The deputy minister was leading an Indonesian delegation to the Chinese expo with members consisting of 20 national coffee producing companies and members of the Indonesian Coffee Exporters Association (AEKI).

The finance ministry official said that Indonesia`s coffee export prospects to China could reach 50,000 tons per annum.

World Bank to improve RI`s electricity supply The World Bank is set to help Indonesia meet its growing need for electricity and make electricity supplies in Java and south-central Sumatra more reliable through a newly approved financing package worth US$225 million.

The project entails direct cooperation with state electric company PLN and, once successfully implemented, is expected to benefit over 56 million people in Java and Sumatra, Acting Country Director for the World Bank in Indonesia Chris Hoban, said in a press statement here recently.

“A reliable and sustainable supply of electricity is essential for Indonesia to realize its potential as a large middle-income economic power. At present however, Indonesia`s economy is growing at a pace that exceeds its ability to provide electricity. To keep up with demand, electrification rates would need to grow at a rate of around 7% per year,” said Hoban.

“This project to help strengthen electricity supply in Java and Sumatra is expected to have a very positive impact on the business climate in the long run,” he stated.

Goverment raises Rp246b from sukuk auction

Minister: 5.8% Growth Target for 2010 “Realistic” Some factions in the House of Representatives (DPR) had earlier expressed optimism that the economic growth target of 6.6-7% for 2011 could be achieved.

T

he government sees its economic growth target of 5.8% for this year is still realistic even though many have predicted the economy may grow at a higher pace.

“We still maintain it at 5.8%. This is realistic figure because in the first-quarter growth is 5.7%,” Coordinating Minister for Economic Affairs Hatta Rajasa said here recently.

Certain quarters, including international bodies, had predicted the economy might expand more than 6.0% this year, the minister said.

Some factions in the House of Representatives (DPR) had earlier expressed optimism that the economic growth target of 6.6-7% for

the target,” he said.

RI`s debt ratio continues to improve Meanwhile, the government said last month the country`s ratio of debt to gross domestic product (GDP) continued to improve and fell short of the target of 29% for 2010.

“As per June 2010 the ratio of debt to GDP was about 26%. In our medium-term development plan ended in 2014 the ratio has been projected at 24%. The ratio will likely fall below the target as the ratio of debt to GDP for 2010 is far below the target of 29%,” Coordinating Minister for Economic Affairs Hatta Rajasa said at the presidential office last month.

He made it clear that the drop was partly because GDP increased and foreign debts fell, leading to a decline in net debts.

“In other words, our foreign

debt repayment capacity is far better than our foreign debts.

In this respect, the President has asked us to manage (our foreign debts) properly using domestic sources to repay it,” he said.

The minister said the government would also streamline investment and export procedures.

“So far we have four working groups in charge of accelerating investment and exports. We will simplify them into two working groups. The working group dealing with investment will be led by the Investment Coordinating Board (BKPM) chairman and that related to exports by the trade minister with the coordinating minister for economic affairs as a coordinator,” he said.

“We are now in the category of investment road. We must make use of the momentum to accelerate investment inflows. We have been declared a very interesting investment destination,” he said.

“We still maintain it at 5.8%. This is realistic figure because in the firstquarter growth is 5.7%.”

Hatta Rajasa Coordinating Minister for Economic Affairs

Minister Invites US Businessmen to Invest in State Enterprises 141 state-owned companies have assets of US$239 billion by the end of 2009, and accounted for 40% of Indonesia`s gross domestic product.

Photo: www.vivanews.com

The government raised Rp246 billion in funds from the sales of state sharia bonds (sukuk) in an auction last month, a Finance Ministry official has said.

The funds came from two of four series of sukuk offered in the auction, Rahmat Waluyanto, the ministry`s director general of debt management, said in a statement.

The sukuk series IFR0007 due in March 15, 2030 carries a yield of 9.43985% and a coupon rate of 10.25%, while the sukuk series IFR0007 due on January 15, 2025 carries a yield of 9.28125% and a coupon rate of 10.25%.

The amount of incoming bids for IFR0003 was Rp310 billion with the lowest yield of 7,9375% and the highest yield of 9.5%, and IFR0005 Rp225 billion with the lowest yield of 8.4375% and the highest yield of 9.53125%.

2011 could be achieved.

The optimism was based on favorable domestic economic developments, manageable macro economic and monetary stability and other positive indicators.

The domestic economy grew by 5.7% in the first quarter of 2010, or 0.1% lower than the target of 5.8% set in the revised 2010 state budget.

Last year, the economy grew by 4.4%.

The House of Representatives asked the government to take into account inputs, views and suggestions from the House with regard to the draft 2011 state budget.

Asked to comment on the low budget absorption until late June, Hatta said government spending, particularly on capital goods, had indeed become the center of attention.

“But compared to 2008 and 2009 the difference is only 1%, so we still have a chance to meet

State Enterprises Minister Mustafa Abubakar has invited US capital investors to do business in Indonesia as state enterprises in the country had been constantly growing although the economy in Asia in general has been declining, Antara reported from New York last month.

“I believe that the Indonesian economy, which was firm in facing the 2009 crisis, is one concrete proof that our business companies had much improved, with a strong balance and big chance for growth,” Mustafa said when addressing capital market businessmen at a New York Midtown Con-

ference and Client Center last month.

Mustafa was in New York under an Indonesia Corporate Day 2010 program of the Indonesian government to give the latest picture on the activities of Indonesian state enterprises and the government`s strategy in boosting state enterprises.

Mustafa presented the Indonesian government`s plan to reach a 7.7% economic growth; 12.1% investment growth, and a total investment of Rp10,000 trillion; infrastructure investment of Rp1,500 trillion; and a 15.6% export growth.

“The state-owned enterprises will be playing a key role in reaching the targets,” Mustafa said.

He also explained that 141 state-owned companies have assets of US$239 billion by the end of 2009, and accounted for 40% of Indonesia`s gross domestic product.

In the meantime, total income in the same period reached US$106 billion with a net profit of US$9.4 billion.

Mustafa also said most stateowned enterprises have shares of good reputation (blue chips) and

Mustafa Abubakar State Enterprises Minister

“I believe that the Indonesian economy, which was firm in facing the 2009 crisis, is one concrete proof that our business companies had much improved, with a strong balance and big chance for growth.”

four companies, namely Telkom, Bank Mandiri, Bank Rakyat Indonesia and Perusahaan Gas Negara (gas distributor), belong to the 10 top companies in the Indonesian capital market.

Indonesia Corporate Day 2010 was held by Bank of America Merril Lynch with the support of Goldman Sachs, Danareksa Sekuritas, Mandiri Sekuritas and Bahana Sekuritas in two American cities, Boston (July 26) and New York (July 27).

The Indonesian state enterprises at the meetings in Boston and New York were Aneka Tambang, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Tabungan Negara, Jasa Marga, Perusahaan Gas Negara, Semen Gresik and Telkom.

A total of 130 investors were involved in the meeting in Boston, and 185 others held meetings in New York.

A similar program was held in London (July 29) and Edinburgh (July 30).

Minister Mustafa told ANTARA that in the meetings in Boston and New York the US investors had great expectations of sectors which they believed

have promising business prospects.

Nevertheless, he said they had expressed concerns over land leasehold, infrastructure -- especially electricity-- and social and political stability.

“Foreign interest to invest increases” Foreign investors show increasing interest in investing in Indonesia because of the conducive investment climate in the country.

“The investment climate in Indonesia is getting more conducive for foreign investors ,” Coordinating Minister for Economy Hatta Rajasa said here last month.

“In the first semester, direct investment from abroad was very high, and according to the Capital Investment Coordinating Board (BKPM) it rose by 24%, but domestic investment was not very high although in the second semester it rose by around 40%,” he said.

The BKPM said realization of domestic investment and foreign investment in the second semester of 2010 reached Rp50.8 trillion, an increase of 55.8% compared to Rp42.1 trillion in the second semester of 2009.

Distribution of Credits Increasing: BI Credit provision in the July 12-16, 2010 period had increased Rp0.59 trillion to Rp1,571.45 trillion.

BERITA FOTO

Gas Cylinders Safety

Photo: The President Post/Nandi Nanti

Gas Cylinders Safety: Workers checking the three-kg liquefied petroleum gas cylinders prior to distribution. The producer, PT. Pertamina, continues to repair three-kg cylinders for safety reasons.

Bank Indonesia (BI) said last month that the amount of banking credits had increased again where it recorded that credit provision in the July 12-16, 2010 period had increased Rp0.59 trillion to Rp1,571.45 trillion.

BI Spokesman Difi A Johansya said that with the additional credit provision in that period the amount of total credits up to now had reached a growth of 9.88%

as compared with that a year earlier at 19.57%.

In the meantime, the third party funds in the report week increased Rp0.09 trillion to Rp2,064.8 trillion so that up to now the public funds saved at banks had increased 4.79% as compared to that last year which stood at 15.41%.

He said that the rupiah interest rates had experience a decline but that for foreign exchange increased slightly.

Thus, the rupiah interest rate margin was narrowing from 5.98% to 5.92%.

On the occasion, Difi said Bank Indonesia also had recorded the return of foreign funds invested in the rupiah portfolio in the July 12- 16 period.

Difi A. Johansyah said the success of Indonesia to achieve the Investment Grade level by Ja-

pan Credit Rating Agency (See: BUSINESS) has provided positive sentiment to Indonesia`s financial market so that foreign investors increased their rupiah portfolio investment.

The foreign fund flows in this period reached Rp4.65 trillion, which consisted of Rp1.23 trillion invested in state debentures (SUN), Rp2.33 trillion in Bank Indonesia certificates (SBI) and Rp1.09 trillion in stock transactions.

He said that because during the report week there was no SBI auction activities, transactions were conducted in the secondary market with a foreign transaction ceiling on SBI increasing from 13.94% to 14.95% or reaching a recorded amount of Rp35.27 trillion.

The President Post

www.thepresidentpost.com

August 12, 2010 A5

The Economy Retail Turnover Reaches Rp40 trillion

BERITA FOTO Enhancing Services Garuda Indonesia continues to boost its service quality in rhythm with rising demand for secure and well managed air transportation system.

Retail turnover has reached Rp40 trillion by July 2010, according to the general chairman of the Association of Indonesian Retailers (Asprindo), Benjamin Mailool, on Saturday.

“Sales until this month has reached Rp35 to Rp40 trillion,” he said after the launching of Care Coins Movement.

He said the growth in retail turnover was expected to be bigger in the third quarter due to the Islamic fasting month from August to September when consumption usually reaches a peak.

“Sales during post-fasting festivity usually rises steeply to 35-40%. Indeed, distribution is not even on a quarter to quarter basis as this is mere seasonal,” he said.

Benjamin said retail turnover kept increasing every year at an average of 15%.

The growth spreads equally among retailers such as Hypermarket, Supermarket and minimarkets.

This year he expected total turnover to reach Rp100 trillion.

The growth of retail outlets is still increasing between 7-10% a year.

“This year they total 12,000 and next year it will grow by 10%,” he said.

He said the growth in retail outlets has already begun since early January at a rate of five percent to catch up with the fasting month shopping season.

“The growth of minimarkets is the biggest because they are more flexible,” he said.

Photo: The President Post/Nandi Nanti

RI Enjoys US$9.63 b Foreign Trade Surplus in H1

I

ndonesia saw a surplus of US$9.63 billion in its foreign trade in the first half of 2010, the Central Statistics Agency (BPS) said.

Over the period, Indonesia suffered a deficit in its trade with a number of countries, particularly China, but trade with other countries still favored Indonesia, BPS Chief Rusman Heriawan said last month.

Data from the BPS show Indonesia suffered a deficit of US$2.95 billion with China and US$1.69 billion with Thailand in the first half of 2010.

Rusman said the deficit in trade with Thailand was particularly because Indonesia imported a great deal of vegetables and fruits from the neighboring country.

During the first semester of 2010, Indonesia also recorded a trade deficit of US$856.3 million with Australia and US$218.6 million with Singapore, he said.

He said in the January-June 2010 period Indonesia`s balance of trade recorded a slight surplus from crude oil but suffered a deficit from processed oil.

“In the first semester, we saw a slight surplus of US$333.6 million in crude oil trade, so we still can be categorized as a net exporter. However, processed oil caused a deficit of US$6.4 billion to our balance of trade. We spent much of our foreign exchange on fuel oil imports,” he said.

However, Indonesia`s gas exports in the first half of 2010 jumped to US$6.491 billion while its gas imports reached

US$348.7 million.

Rusman said Indonesia`s imports in the first semester of 2010 rose significantly by 51.99% to US$62.89 billion from a year earlier.

Non-oil/non-gas imports in the January-June 2010 period reached US$49.77 billion, an increase of 46.52% from the same period last year.

Oil and gas imports in the first half of 2010 meanwhile jumped 77.10% to US$13.12 billion from a year earlier.

In the January-June 2010 period the import of consumer goods rose 61.14% to US$4.652 billion, raw and auxiliary materials 55.90% to US$46.222 billion, and capital goods 35.91% to US$12.016 billion compared to the same period last year.

Minister: Trend in export growth up Trade Minister Mari Elka Pangestu said the trend in export growth is rising in line with increasing export demand from countries in Asia.

“I saw until May the trend is still around 30 percent compared to that of the same period last year,” she said after the launching of Care Coins Movement here last month.

She believed the annual rate of export growth was still around 13%.

“So the upward trend is still strong. We have not seen much impact from the crisis in Europe,” she added.

“What we must maintain is demand from Asia as they have all started reducing their stimu-

lus.”

The minister hopes exports in 2010 would grow 7.0 to 8.5%.

The average non-oil/gas exports in 2010 is recorded at around US$10 billion a month.

Regarding the rupiah appreciation the minister said that it would increase the cost to be borne by exporters.

“Therefore we must strive to reduce the exporters`cost of production. We must lower high cost economy by cutting cost of processing, restitutions and others,” she said.` She said the government would strive to maintain the rupiah stability against the US dollar.

“We will keep it balanced.

What is important is stability and that is the task of Bank Indonesia,” she said.

Government Focuses on Absorption of Smallholder Credits The government will speed up the absorption of smallholder business credits (KUR) in the second semester so that it would surpass the Rp13.15 trillion target by the end of the year, Hatta Rajasa said.

“We are optimistic the floor target of Rp13.155 trillion will be exceeded,” the coordinating minister for economic affairs said after a cabinet meeting here last month.

He said from March to June 2010 KUR distribution reached Rp5.3 trillion, higher than in the same period last year ast around Rp4 trillion.

The government has already prepared plans to accelerate KUR absorption such as increasing maximum credit limits for

small and medium businesses.

He said small and medium businesses could now apply for a credit of between Rp5 and Rp20 million without collaterals while retail businessmen could get between Rp20 and Rp500 million.

Hatta said the target of KUR priority was the upstream sector of various small and medium businesses particularly agriculture, fisheries and marine resource.

Besides increasing ceilings the government would also increase data collection of and information campaign among small and medium businesses in every subdistrict to improve their knowledge about the credit scheme. “That way it is expected absorption will be accelerated,” he said.

The President Post

A6 August 12, 2010

www.thepresidentpost.com

ASEAN

ASEAN: Realizing AEC A very detailed road map for an ASEAN Community 2009-2015 was decided about a year ago on 1 March 2009 at Cha-am in Thailand. The blueprint for the establishment of AEC shows all the details of the steps that need to be taken within certain time-frames.

I

ASIAN REGIONALISM n this globalized world no one country can isolate itself from major developments in the world. It would be important for Indonesia, as a prominent member of ASEAN and being part of Asia, to be aware not only of developments in the continent but also of what is happening in the world.

The international community is increasingly beginning to recognize that the center of gravity of the global economy is shifting to Asia, which is home to over half of the world’s population.

After having gone through the Asian financial crisis of 1997/98, Asia is entering a new chapter in its development. Led by China and India, Asia consistently records the world’s highest economic growth by producing about 30% of global output.

Asia is expanding its production and distribution networks to bring Asian goods to consumers around the world. It is also expanding its labor-intensive industries and developing hightech production of intermediate goods.

But as the President of the Asian Development Bank (ADB) observed, “part of Asia’s success story is also its growing integration”. It is following a different

platform and trends than Europe’s. Asian regionalism has its own unique features and dynamics. As described by the ADB, emerging Asian regionalism is multi-track, multi-speed, outward-looking and market-friendly.

Such approach seems to be right for a region of such size and diversity. Asian-style regionalism is being considered as dynamic and outward-looking. The trend of integration in Asia is now gaining momentum, also in ASEAN, which is one of the promoters of regional cooperation.

ECONOMIC INTEGRATION It must be noted that a bold and strategic step has been taken

by ASEAN to establish the ASEAN Community by 2015, supported by three important pillars, namely the ASEAN Political-Security Community, the ASEAN Economic Community (AEC) and the ASEAN Socio-cultural Community.

The ASEAN Community aims to provide peace, security, economic growth and social progress and, importantly, to connect the region together to become a more integrated ASEAN. This strategic decision reflects the growing awareness of ASEAN; the time has come to further strengthen cooperation and to achieve full-fledged regional

ASEAN: AN OVERVIEW

By Atmono Suryo

By Atmono Suryo

Main Elements of AEC ASEAN ECONOMIC COMMUNITY Strategic Schedule SINGLE MARKET & PRODUCTION BASE

COMPETITIVE ECONOMIC REGION

EQUITABLE ECONOMIC DEVELOPMENT

INTEGRATION INTO THE GLOBAL ECONOMY

Free flow of goods

Competition policy

SME deveopment

Coherent Approach towards External Economic Relations

Free flow of services

Consumer Protection

Initiative for ASEAN Integration (IAI)

Free flow of investment

Intellectual Property Rights

Free flow of capital

Infrastructure development

Free flow of skilled labor

Taxation

Priority Integration Sectors

e-Commerce

Food, Agriculture and Forestry Human Resource Development

integration covering three important areas of ASEAN life: political, economic and social areas.

The 10-member ASEAN has a large population (more than half a billion people) with a GDP of more than US$1.5 trillion, and is the third biggest region after China and India.

No doubt, economic Integration is of key importance for ASEAN to achieve welfare and sustainable growth. Economically, ASEAN has made extraordinary progress during the last decade. It has proven to be able to cope with the 1997-98 Asian financial crisis and to weather with success the current global crisis of 2008.

It is poised to achieve an av-

T

AIMS AND PURPOSES The ASEAN Declaration describes them briefly as follows: • To accelerate economic growth, social progress and cultural development • To promote regional peace and stability • To promote active collaboration and mutual assistance and provide assistance to each other • Greater utilization of resources, expansion of trade, improvement of the transportation and communication • To aim at raising living standards • To foster close and beneficial cooperation with international and regional organizations ASEAN’S 10 MEMBERS The ASEAN Secretariat is lo-

cated in Jakarta, Indonesia. There is the need to further strengthen (to the optimum) the ASEAN Secretariat. Next year in 2011 Indonesia will assume the ASEAN chairmanship.

CHARTER In November 2007 the ASEAN members signed the ASEAN Charter, a constitution governing relations among the ASEAN members and establishing ASEAN itself as an international legal entity.

TREATY The fundamental principles of the Treaty of Amity and Cooperation in South East Asia include: • mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations; • the right of every State to lead its national existence free from external interference, subversion or coercion; • non-interference in the internal affairs of one another; • settlement of differences or disputes by peaceful manner; • renunciation of the threat or use of force; and • effective cooperation among ASEAN countries EXTERNAL RELATIONS Cautiously but consistently ASEAN has developed closer relations and cooperation to forge dialogue partnerships with a large number of prominent countries.

The strategic partnership arrangements are namely ASEAN plus Three covering 13 countries in East Asia ARF (Asia Regional Forum) with a large number of participating countries, EAS (East Asia Summit) to include ASEAN+3 countries and India,

Research and Development

erage growth rate of around 5% or more in 2010 (between 4.95.6%), higher than other regions such as Europe, Latin America or the North America.

With the significant progress made by ASEAN, the international community rates it as one of the key regional groupings with a strong political and economic clout, not only in East Asia but also in the wider Asia-Pacific and global context.

ASEAN has shown its strength in its external relations, developing partnerships with a large number of highly important countries. ASEAN has developed the ASEAN+3 grouping (ASEAN 10 plus China, Japan and South Korea) and the formation

of EAS (East Asia Summit comprising ASEAN+3, India, Australia and New Zealand) The United States and Russia are now in the process of joining the EAS. The weaker side of ASEAN is its internal (intra-ASEAN) relations. There is the danger that ASEAN credibility will wane if it does not put its act together and show that it is sincere about regional cooperation and integration. Therefore, the steps need to be taken by ASEAN to establish the ASEAN Community is of strategic importance.

AEC – ASEAN ECONOMIC COMMUNITY In the globalized world, multilateralism and regional integration have become important

AEC is comprised of four parts as follows: • To create a single market and production base characterized by a free flow of goods, services¸ investment and skilled labor as well as a freer flow of capital • To develop a competitive region characterized by the implementation of a competition policy, consumer protection, intellectual property rights protection, infrastructure development, sectoral competition in such areas as energy, mining, e-commerce and others • To achieve equitable economic development characterized by SME development, enhancement of the initiative for ASEAN integration

• To secure integration into the global economy with ASEAN centrality and participation in regional (Asia) and global networks URGENT NEEDS A very detailed road map for an ASEAN Community 20092015 was decided about a year ago on 1 March 2009 at Cha-am in Thailand. The blueprint for the establishment of AEC shows all the details of the steps that need to be taken within certain time-frames.

During the remaining four and half years, many of the AEC components, as one of the three pillars of the ASEAN Community concept, have to be in place.

That will not be an easy task; in fact it will involve a great deal of economic reform in the member states, including Indonesia.

It is of considerable importance for Indonesia to engage in an information campaign so that preparations and adjustments are made to comply and implement the integration agenda not only by the government but also by the public.

The private business sector and the public have to make their adjustments and prepare for the ASEAN inflow and also of the outflow (from Indonesia) of goods, services, investment, capital and skilled labor.

Steps must also be taken to become a competitive country, to develop the required infrastructure and the upholding of IPR intellectual property rights), sound taxation and integration into the global economy, The writer is a retired career diplomat and a former ambassador to the EU.

ASEAN IN THE GLOBAL ECONOMY 2009 (GDP US$ billion)

LAOS MYANMAR

VIETNAM

PHILIPPINES

16,447

THAILAND

ASEAN has become a significant geopolitical, economic association of 10 countries, well-respected and esteemed by the world community. he Association of Southeast Asian Nations was established 43 years ago on 8 August 1967

by Indonesia, Malaysia, Thailand, the Philippines and Singapore, with Adam Malik of Indonesia playing a key role on that historical and strategic occasion. Since then, membership has expanded to include Brunei, Myanmar, Cambodia, Laos and Vietnam.

With all its shortcomings, ASEAN has become a significant geo-political, economic association of 10 countries, wellrespected and esteemed by the world community. As an emerging region which can play a positive role in world politics and economics, it is strategically located in East Asia which is presently becoming the center of gravity of the global economy.

Enhanced participation in global supply networks

policy instruments. Regional cooperation is considered to be an important “building block” to achieve multilateral cooperation.

Three years ago, at the 12th ASEAN summit in Cebu in January 2007, ASEAN decided to establish the ASEAN Economic Community, or AEC, to be completed by 2015 covering, in stages, all ten ASEAN countries.

On long-standing options, cooperation or competition, ASEAN has made the right choice, namely to choose cooperation and remain steadfastly on the road to integration. This option has, of course, its far-reaching consequences, which should be well-understood by the community and public in respective member states.

A comprehensive assessment has been made as contained in a report called “ Realizing the ASEAN Economic Community”, edited by Michael G. Plummer and Chia Siow Yue.

EU CAMBODIA

BRUNEI MALAYSIA

14,256

SINGAPORE

US

INDONESIA

ASEAN IN NUMBERS

AREA 4,464,322 km2 2,772,344 sq mi

GDP (PPP) - 2007 estimate US$ 3,431.2 billion (total) US$ 5,962 (per capita)

POPULATION 577 million (2008 estimate) 129/km2 (density) 208/sq mi (density)

GDP (Nominal) - 2008 estimate US$ 1,505.7 billion (total) US$ 2,609 (per capita)

HDI - 2007 0.742 (medium) (100th)

5,068 Japan

4,909 Australia and New Zealand, and ASEM (ASEAN-EU Meeting) with EU (European Union).

It is of considerable importance for ASEAN to deliver concrete results with all the dialogue partnership arrangements.

ECONOMIC POSITION • Population: ASEAN spans over an area of 4.46 million km2 with a population of approximately 580 million people, or 8.7% of the world population.

ASEAN’s population is nearly twice that of the US, one-fifth more than that of EU27, more than four times that of Japan but only half of India’s and less than half of China’s population • GDP: In 2009, its combined nominal GDP had grown to more than US$1.5 trillion.

Available data suggest that If ASEAN was a single country with a GDP of US$1.5 trillion, it would rank as the 5th largest economy in the world after EU27 (US$18 tril-

lion), US (US$14 trillion), Japan (US$4.9 trillion), China (US$4.4 trillion) but larger than India (US$1,2 trillion) • Rate of growth: Annual rate of growth was as high as 6.5% in 2007 but decreased to 4.2% in 2008. Indonesia and Vietnam are among the high growth countries. ASEAN enjoys resilient economic growth • Resources: ASEAN is endowed with significant natural resources, sizeable consumer market, immense young population and has the potential to become a significant production base • Challenges: The economic challenges facing ASEAN, however, are still huge among others the large problem of poverty and unemployment which are creating political-social problems; per capita income which is still not adequate; large inequalities among the people; inadequate infrastructure ands others. On top of it ASEAN faces a number of

highly sensitive political issues affecting East Asia.

AGREEMENTS A very large number of declaration and agreements have been signed by ASEAN, which recently includes: The Declaration on East Asian Energy Security--signed on 15 January 2007 by ASEAN and the other members of the EAS (Australia, People’s Republic of China, India, Japan, New Zealand, South Korea) to promote energy security by finding energy alternatives to conventional fuels On February 27, 2009 a Free Trade Agreement was signed with the ASEAN regional block of 10 countries and New Zealand and its close partner Australia.

ASEAN ECONOMY: TRADE In ASEAN economy, trade, especially exports, is one of the keys if not the most crucial component. It is the driving force of the countries in Southeast Asia.

The largest trading countries

within ASEAN in 2008 are Singapore with US$472 billion, Thailand US$352 billion, Malaysia US$338 billion, Indonesia US$266 billion and the Philippines US$105 billion.

China

1,499

Since 2002 the trend of ASEAN trade rose considerably. It is one of the fastest growing in the world, followed by Asian giants China and India. ASEAN trade rose from about US$759 billion in 2000 to US$1,710 billion in 2008. Because of the global crisis of 2008-2009 ASEAN trade was badly hurt in 2009.

ASEAN

Free flow of goods The current world trade indicates that multilateral trade with the WTO (World Trade Organization) in the lead will continue to work towards global free trade. This trend will also prevail in ASEAN, which aims to implement the ASEAN Economic Community by 2015 with free flow of goods, services and investment.

1,114

1,236 India

New Zealand

833 ROK

Source: ASEAN Finance and Macroeconomic Surveillance Database and IMF

The President Post

www.thepresidentpost.com

August 12, 2010 A7

The Region Ho Chi Minh City: On the Move Text and photos by Taufik Darusman

In Ho Chi Minh City, the past, present and future move in unison to a rhythm that manages to attract annually three million foreign tourists to the city.

H

o Chi Minh City (HCMC), the largest city in Vietnam with a population of nine million people, is often referred to as the “Paris of the Orient”.

Strolling in Le Loi, Dong Khoi and Nguyen Hue, you will readily appreciate the fact that the French – they once colonized Vietnam for decades at the beginning of the 20th century – have no objection in having its capital city mentioned in the same breath with HCMC, which was originally called Saigon.

HCMC is a metropolis on the move – and we’re not just talking about the motorbikes that throng the streets. The city is a high-octane center of commerce and culture, driving the country forward with its limitless energy.

Timeless alleys, ancient pagodas and traditional markets, wooden shops selling silk, spices and baskets, they are all there complemented with sleek skyscrapers, designer malls, gourmet restaurants and minimalist bars.

The city blends these two realms seamlessly into one.

The aura of Europe is strongly felt in this area, which teems with star-rated hotels, malls, boutiques, cafes, art galleries, antique shops and parks adorned with statues, all well-maintained.

The neighborhood is hardly a throwback to the past, but neither is it too contemporary. Here, the past, present and the future march in tandem as the Vietnamese are very proud of their history and look forward to the next day with aplomb and optimism.

Every city has its symbol of prosperity, and in the case of HCMC it is motorcycles roaming around the city’s streets even at midnight. The people of HCMC appear to be always on the move and doing something, as if trying to make up for the time they lost as a result of two decades of civil war that ended in 1975.

Yet another such symbol (and that of investor confidence) are the new office and apartment buildings on the verge of scrapping the skies of HCMC. What is remarkable is that the new structures do not take up the space of old historic buildings, most of which are retained, kept well and seldom demolished.

Foreign companies like CB Richard Ellis Vietnam (CBRE Vietnam), Savills Vietnam, and Colliers have a 90% market share of the realty consulting industry in Vietnam.

They have recently been joined

by one more foreign player, the UK-based Knight Frank, which opened its first commercial and residential property office in HCMC. The prevalence of foreign firms with decades-long global and local experience and extensive databases and highly skilled personnel is complete at this moment.

If one of the benchmarks of a liveable city is the existence of clean and broad sidewalks for its citizens and visitors to explore sidestreets and examine alleys, HCMC fullfils that criteria. But that is but one of the many drawing powers that the city has in abundance.

The Le Loi neighborhood is practically the center of HCMC and is located on the banks of the Saigon River, in which during evenings cruise boats traverse as passengers get treated to Vietnamese culinary food and music.

To reach the harbor, one has to pass by a boulevard cuddled with historic French colonial architecture style buildings that mesh remarkably well with modern office and apartment buildings.

The French masters at the time knew very well the importance of city planning, as in that same area you find beautiful buildings such as City Hall (standing proudly despite its age of more than a century), the majestic Opera House (recently renovated), the Central Post Office (still functioning after all these years) and the resplendant Notre Dame Cathedral (constructed at the beginning of the 18th century), all of which are main tourist attractions.

Here one also finds the city’s public library that is said to house over 1.5 million books.

One relatively newcomer in the city’s landscape is the four-storey Reunification Palace, where prior to 1975 resides the president of what was then called South Vietnam before Ho Chi Minh, the North Vietnamese leader and fighter, united both entities into what is now the Republic of Vietnam.

“Although the capital city of Vietnam is Hanoi, the center of the country’s economy and business is Ho Chi Minh City,” says Syamsul Adnan, Garuda Indonesia General Manager Vietnam.

“The city and its surroundings cover less than one percent of Vietnam’s land area, but 7.5% of the country’s population, about 20% of its GDP, 28% of its industries and 35% of foreign direct investments are found here.”

In fact, according to official data, last year the GDP per capita

painters are extraordinary and relatively affordable. The proceeds I get from its sale in Jakarta are more than enough to earn me a handsome return and cover my travel expenses,” she said.

of HCMC stood at US$2800, or more than twice the national average level of US$1042.

Vietnam is the world’s 13th most populous country and enjoys a young population, which implies the country has both a large market and an energetic labor force.

Foreign investors praise Vietnamese workers for being quicklearning and industrious.

The country attracted nearly US$6 billion in foreign direct investment (FDI) over the past four months of this year, said the Foreign Investment Agency under the Ministry of Planning and Investment.

Of the figure, US$3.6 billion was disbursed, a 36% increase compared to the same period last year.

In April alone, businesses disbursed US$900 million in FDI, while attracting almost US$3.8 billion in newly-registered additional investment.

Among the 31 countries investing in Vietnam in the past four months, the Netherlands ranked first with US$2.15 billion, followed by Japan (US$1.1 billion) and the US (US$1.02 billion).

The Vietnam Food Association (VFA) reports last month enterprises have delivered 1.8 million tonnes of rice worth US$800 million to foreign buyers, and have signed contracts to export 2.8 million tonnes.

Vietnam is now set to join the World Trade Organization (WTO), bringing to an end an 12-year journey for the Communist-run state.

The government believes that joining the WTO is vital to the country’s efforts to maintaining its rapid economic growth and achieving its dream of leaving the ranks of the world’s poorest countries this year.

Every year the country needs to create a million new jobs for its young population and some economists are worried that the economy may not be able to deliver.

Vietnam is also said to be the darling of the international aid community as it is one of its few development success stories.

In 1998 38% of the popula-

What You Should See in HCMC in Four Days First Day

Arriving at noon from Singapore at Tan Son Nhat, HSMC’s brand new, clean, orderly and efficient international airport, head straight to your hotel to check in.

Visit immediately the magnificent Notre Dame cathedral, which lies in the vicinity of other tourist attractions such as the Central Post Office, City Hall and the Opera House, boutiques, malls, star-rated hotels and art galleries.

The ambience here prompts many tourists to agree that calling HCMC the “Paris of the Orient” is the right thing to do. It is recommended that one visit the area also in the evening, when city lights make the place even more beautiful.

Back to the hotel to prepare for the “Saigon River Cruise”, which features Vietnamese culinary food and music.

Second Day

Take the 90-minute ride to Cu Chi, the location of a section of the the 200km underground tunnel used by Vietnamese guerillas fighting against American troops during the Vietnam War that ended in 1975.

The area is very huge and offers

many interesting battle-related features; set aside at least three hours here, including time to follow an audio-visual presentation on the intricacies of the famous underground tunnel.

at reasonable prices.

Here, one can take a canoe trip on a palm tree-covered creek heading towards the Mekong Delta before taking lunch with “Deep-fried Elephant Ear” fish as its main course.

Back to HCMC to visit the War Remnants Museum, no history buffs should miss for its breadth, including former US jet fighters and helicopters displayed on the premises.

Visit Vietnamese handicraft centers Hacota and Cong Ty that offer amazingly beautiful lacquer works.

Fourth Day

Third Day

A two-hour drive leads you to My Tho, during which you will be feasted by sceneries of beautiful ricefields on your left and right (some of the rice are said to be exported to Indonesia).

The quality of the road is good and the traffic is bearble, two of the many qualities that make Vietnam a favorite country among Indonesian cyclists.

At My Tho, take a boat trip on the Mekong River and stop over at Thoi Son to enjoy food and fresh fruits as singers serenade you with Vietnamese folk music. Souvenir booths abound offering you interesting items

Visit the Reunification Palace, a site that is sure to capture the imagination of history buffs, and the awesome Thien Hau temple in China Town.

After a hearty lunch of traditional Vietnamese noodles, visit the Ben Thanh market, a souvenir center where price bargaining is the norm.

Find time to stroll in the vicinity of the tree-lined Le Loi (HCMC’s answer to Bandung’s Braga Street), which is not too hot even in the middle of the day and enjoy Vietnam’s famous coffee at one of the street’s dust-free sidewalk cafes.

You can also do prayer at the Dong Du mosque that was set up in 1935

by Indian Muslim traders, after which you can have dinner at halal@saigon restaurant across it.

Reprinted by permission from Garuda Inflight Magazine.

The people of HCMC appear to be always on the move and doing something, as if trying to make up for the time they lost as a result of two decades of civil war that ended in 1975.

tion lived below the internationally-accepted poverty line, but by 2002 that was down to 29% and in the past few years it’s fallen even further.

Gradually Vietnam is becoming more than a place to assemble products cheaply - some higherskilled work is being transferred here - meaning more investment and better pay for workers.

Since unprecedented economic reforms began in 1986, Vietnam has transformed itself from a country on the verge of economic collapse and isolation into one of the most open and fastest-growing economies in the world.

Enabling the country’s rapid GDP growth, averaging 7.5% between 1990 and 2008, is its robust integration into the world economy, with an average trade growth rate of over 20% over the same period.

About four millions foreign tourists come to Vietnam each year, 70% of whom make HCMC their prime destination. That figure, according to a senior official at the Ministry of Culture and Tourism, includes about 20.000 Indonesian tourists, a number that does not budge much from year to year.

(Conversely, 40.000 Vietnamese tourists visit Jakarta, Yogyakarta and Bali in 2009, bringing the potential annual two-way passenger traffic figure to about 60.000.)

Among Indonesian tourists that visit HCMC are avid cyclists.

As members of Jakarta-based cyclist clubs, they would come in groups to Vietnam, each bringing along their own dis-assembled two-wheelers that can be put together in their hotel rooms.

In the morning, as the city starts to show signs of life, they would already be on the road outside the city stepping on the pedals of their bikes to enjoy clean and fresh air amidst greenery.

Another sort of Indonesian tourists are owners of art galleries such as Miranty Abidin, the CEO of PT Fortune Indonesia, a leading Jakarta-based PR and communications company. She would regularly travel to HCMC and purchase paintings by Vietnamese artists in large numbers.

“The works of Vietnamese

Established Vietnamese painters peddle their wares in upscale art galleries in the Dong Khoi area, while struggling artists make do by churning out en masse replicas of the works of Leonardo da Vinci (Mona Lisa), Vincent van Gogh (Sunflowers) and Andy Warhol (Campbell’s Soup) that come very close to the originals.

The prices are in fact attractive to the point of being an irresistable temptation to Indonesian buyers. The painters put neither their own names nor those of the real painters on the canvass, but guests who notice the presence of a Warhol or a van Gogh at your living room may not be able to distinguish it from the real one.

“During the prolonged Vietnam War, only the sounds of cannons, bombs and grenade blasts were heard here. Now, what you hear are the soft sound of the engines of luxury cars, the clinks of wine glasses and cellphones ringing incessantly,” says Adnan, who is now busy preparing the opening of Garuda Indonesia JakartaHCMC direct flights.

Indeed, HCMC is neither Singapore nor Kuala Lumpur, or even Jakarta for that matter, but being there allows you to feel the dynamics and the strong urge of its people to make the city even more attractive than it already is.

Obviously, the three million foreign tourists that annually visit the city can not be wrong.

The President Post

A8 August 12, 2010

Automotive INDONESIA INTERNATIONAL MOTOR SHOW2010 Text by Jeannifer Filly Sumayku Photos by Nandi Nanti

The just ended IIMS 2010 was the most successful international exhibition ever in Indonesia. At least 260,000 people visited the motor show.

“A million cars were sold out and though the sole agents did not have targets, the result was very satisfying,” said Johnny Darmawan, the chairman of IIMS 2010.

This year’s theme was “Ecotechnology Motoring”. The event promoted new technologies that are environmental friendly.

automotive technology from various brands such as Mercedes, BMW, Audy, and Asian cars.

There were various attractions highlighting the events.

Based on JD Power Asia Pacific study, Toyota registered the highest amount of sales, followed

by Hyundai and Nissan. This study revealed that the loyalty of customers was related to performance of the dealers.

Visitors was the most advance

The President Post OFFICE Menara Batavia 25th Fl. Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Phone : (021) 572 7337 Fax : (021) 572 7338 Email : ceo@thepresidentpost.com Web : www.thepresidentpost.com

PUBLISHED BY PT Sarana Pratama Pengembangan Kota CEO & EDITOR IN CHIEF Ali Basyah Suryo CONTRIBUTORS Atmono Suryo Cyrillus Harinowo Hadiwerdoyo Taufik Darusman Thomas W. Shreve Jeannifer Filly Sumayku Eka Putri

EDITORIAL & CIRCULATION DEPARTMENT Eka Galliano LAYOUT & DESIGN Mohamad Akmal SALES & MARKETING Detia Rais PHOTOGRAPHER Nandi Nanti

www.thepresidentpost.com

Business BUSINESS BRIEFS Turkey`s TAV, Sigma to build airport in Singaraja, Bali Turkey’s Tepe Akfen Ventures (TAV) and Sigma Sembada Group have agreed to build a new airport in Bali’s Singaraja with an investment of US$500 million.

Sigma Sembada Group’s founder Chris Kanter said the two companies have signed an initial agreement on June 30 in Istanbul during a visit there of President Susilo Bambang Yudhoyono.

Sigma and TAC will establish a joint venture company to build the project on build, operate and transfer (BOT) scheme, Kanter said, adding that his company also is seeking cooperation with state airport operator PT Angkasa Pura to build or expand a number of airports in the country.

Newmont sets aside $38 million for CSR PT Newmont Nusa Tenggara (PTNNT), the local subsidiary of US mining giant Newmont, has allocated US$38 million in funds for corporate social responsibility (CSR) program this year.

The funds would be used to finance community development near mining sites and in the rest of West Nusa Tenggara province, Kasan Mulyono, the company`s public relations manager, said at a mining workshop here last month.

Part of the funds would be used to develop a number of schools as part of the Islamic Center in West Nusa Tenggara, renovate Jami At-Taqwa Mosque in Sumbawa and develop a hospital, he said.

PTNNT Community Development Manager Wagimin Sastrahadi said the company planned to target 1,540 local students to receive scholarships this year.

Krakatau Steel`s profit doubles to Rp815 bln in H1 State steel maker PT Krakatau Steel said its net profit in the first half of 2010 more than doubled to Rp815 billion from last year on rising demand amidst a robust domestic economy.

Last year, the company posted a net profit of around Rp400 billion, PT Krakatau Steel Vice President for Corporate Communication Wawan Hernawan said last month.

Given the surge in the first-semester profit, Wawan said he was convinced that the company could achieve its net profit target of Rp1 trillion for this year.

B

The President Post

www.thepresidentpost.com

Display until September 12, 2010 /// N0. 15

RI Projected to Lead Southeast Asian Car Sales Photo: www.gustomobil.wordpress.com

The first-semester car sales went beyond the preliminary projection made by sole authorized agents (ATPM).

I

ndonesia is set to lead car sales in the Southeast Asian region this year with domestic sales expected to hit a record high of above 700 thousand units.

“Domestic car sales can exceed 700 thousand units,” Co-chairman of the Association of Indonesian Automotive Industries (Gaikindo) Johnny Darmawan said here recently.

The figure would put Indonesia in first place in terms of car sales in the region, overtaking Thailand whose domestic car sales reached 680 thousand last year, he said.

“In the first semester of this year, our domestic car sales reached 370 thousand units. The figure can double to (740 thousand units) at the end of this year,” he said.

He said the first-semester car sales went beyond the preliminary projection made by sole authorized agents (ATPM).

The increase in car sales

was the result of robust domestic economy and growing export performance, helped by the primary commodity sector, he said.

The improving prices of plantation and mining commodities encouraged the purchase of commercial cars, he added.

“In the first semester of 2010 commercial car sales neared the number of commercial cars sold last year,” he said.

Domestic commercial car sales in the first half of 2010 jumped 86% to 107,470 units compared to 56,803 units in the same period last year.

RI to become automotive production basis Meanwhile, Industry Minister MS Hidayat believed that Indonesia would achieve its target of building a firm and strong automotive production basis by 2025.

“The automotive producers` enthusiasm in Indonesia is quite high. They themselves have told me that they will consider Indonesia as their production basis.

Therefore I believe that in 2025 we will see that the production basis may come true,” MS Hidayat said last month.

He also pointed out that

Toyota cars still dominate the sales, followed by mitsubishi, Suzuki, Daihatsu and others.

Indonesia`s geographical position of easy reach of other countries in the world has become a consideration in itself for the world`s automotive principals.

Quantatively, the government plans to develop Indonesia onto a production basis of multi purpose vehicles (MPV), sport utility vehicles (SUV), small economical sedans, commercial trucks higher than 24 tons, medium size se-

dans, hybrid cars, and premium cars by 2025.

The government also have a target that 80% of the design of 4W gasoline engines for medium size sedans, produce quality components for premium cars, and develop suppliers of premium car components.

Car sales reach 370,206 units The car sales in the country in the first semester of 2010 reached

370,206 units, or about 76.2% of the total car sales the whole year in 2009, according to the Indonesian Vehicle Industries Association (Gaikindo).

This is because only the first half of this year the number of cars sold already reached 76 percent of the total sales last year.

Toyota cars still dominate the sales, followed by mitsubishi, Suzuki, Daihatsu and others.

REGISTER NOW

CONFERENCE

EXHIBITION

MINING TOUR

GOLF TOURNAMENT

Official Opening and Keynote Speech by: Coordinating Minister for Economic Affairs of Indonesia, Ir. M. Hatta Rajasa* Opening Remarks by: Minister of Energy and Mineral Resources of Indonesia, Dr. Darwin Zahedy Saleh* Secretary General of ASEAN, Dr. Surin Pitsuwan

“Asia Mining - Adapting to New Paradigms” October 13-14, 2010 Shangri-La Hotel, Jakarta - Indonesia

Confirmed Speakers: Director General – Minerals, Coal, and Geothermal, Ministry of Energy and Mineral Resources of Indonesia, Dr. Ir. Bambang Setiawan Director General – Department of Primary Industry and Mineral of Thailand, Somkiat Pootongchairit Vice Chairman of Region World Mining Congress, Dr. M.P.Narayanan President of ASEAN Federation of Mining Associations and Chairman of Indonesian Mining Association, Ir. Martiono Hadianto Chairman of Indonesian Coal Mining Association, Bob Kamandanu President of Chamber of Mines of the Philippines, Benjamin Philip G. Romualdez President of Malaysian Chamber of Mines, Dato'Seri Dr. Moh. Ajib Chairman of Lao Mining Association, Dr. Somphavan Inthavong Chairman of Cambodian Association of Mining and Exploration Companies, Richard Stranger Executive Director of Prospectors and Developers of Canada, Dr. Tony Andrews Director of the Beijing Axis People Republic of China, Matt Pieterse Executive Vice President of Hong Kong Stock Exchange, Lawrence Fok World Bank Group – Mongolia, Graeme E. Hancock Indonesia Mining Consultant, PricewaterhouseCoopers, Sacha Winzenried Senior Investment Officer of International Finance Corporation (IFC), Karsten Fuelster Senior Manager of Deloitte Mining AdvisoryServices, Nivan Moodley Dean – Faculty of Mining and Petroleum Engineering of Institut Teknologi Bandung, Prof.Dr. Sudarto Notosiswoyo Director – Japan Oil, Gas, and Metals National Corporation, Hiroshi Kubota *) in confirmation

For further information, please contact th 9 Asia Pacific Mining Conference and Exhibition Secretariat c/o PT AFMA Secretariat Gedung Gajah, Unit A-II, 5th Floor Jl. Dr. Saharjo Raya No. 111 Jakarta 12810 e-mail: mining@indo.net.id c/o PT PACTO CONVEX Hotel Sultan Jakarta - Lagoon Tower, B-1 Jl. Jend. Gatot Subroto, Jakarta 10270 Tel. +62-21 570 5800 (hunting), Fax. +62-21 570 5798 Contact person: Ms. Theresa Bombong, Project Officer e-mail: secretariat@aspacmining2010.com

www.aspacmining2010.com Sponsored by:

KIDECO

Media Partner:

Event Organizer:

pacto convex ltd

The President Post

B2 August 12, 2010

www.thepresidentpost.com

Business Green Cars Get Official Go-Ahead Industry Minister MS Hidayat said the government has prepared fiscal incentives for the production of affordable green cars that use local components.

T

he government is encouraging local automotive manufacturers to produce affordable and environmentally-friendly or green cars.

Industry Minister MS Hidayat said the government has prepared fiscal incentives for the production of affordable green cars that use local components.

“Joint venture with foreign (principals) is not a problem.

In this era, it is common to see 100% shares being divided (with others),” he said.

Hidayat’s concept of low-cost, green cars is that they should cost around Rp70-80 million and can run at 22 km on one liter of fuel.

One of the reasons why the government is pushing for the production of low-cost cars is to prevent the segment from being seized by imported cars, said Director General of Transportation Equipment and Telematics Industries Budi Darmadi on the sidelines of Indonesia International Motor Show (IIMS).

“Today is the era of free trade, and if we do not seize it imported ones will,” he said.

Budi explained that based on Indonesia’s automotive market development history, they usually start with commercial cars for productive purposes and develop to pickup trucks, MPV, SUV and others.

He added that basically the government wanted to make cars available and affordable to the general public, as traffic congestions only occur in major cities like Jakarta.

Meanwhile, Astra Daihatsu Motor Vice President Director Sudirman MR said the company is waiting for the government to issue incentives before producing cheap green cars.

“We, industry players, are waiting to see the kind of incentives that will be offered,” he said.

However, he reminded that it would take 2-3 years to develop a product after a government regulation is issued.

Hidayat’s concept of low-cost, green cars is that they should cost around Rp7080 million and can run at 22 km on one liter of fuel.

Bentoel`s profit surges 386% Publicly-listed cigarette maker PT Bentoel International Investama Tbk in the first half of 2010 posted a net profit of Rp112.603 billion, jumping 386.5% from the same period last year.

Sales rose 52.86% to Rp4.372 trillion compared to the same period 2009, according to the company`s financial statement published last month.

Operating profit increased 63.8% to Rp293.67 billion.

As per June 30, 2010 the company`s assets stood at Rp4.792 trillion compared to Rp4.303 trillion previously.

BRI`s credit lending grows 25% Credit extension of Bank Rayat Indonesia (BRI) has up to the second quarter of this year reached 25% if compared with that in the same period a year earlier, its president director said.

“The growth of BRI`s credit extension up to the second quarter of this year has been good reaching 22-25%,” BRI President Director Sofyan Basir said here last month.

He said that though BIR`s credit provision recorded a good growth, it would not revise its growth target at 22-24% for this year.

“There is no need for BRI to revise its credit provision target this year. It is already high,” he said.

In the first semester of 2009, BRI`s credit provision increased by 48.65 trillion or 35.78% to Rp184,6 trillion from Rp135.96 trillion in the first semester of 2008.

Its loan to deposit ratio was recorded at 85.33%.

In the first semester of 2009 it reaped a profit of Rp3.49 trillion which was an increase of 24.19% from the first semester of 2008.

BRI also recorded an increase in its interest income, which in the first semester of 2009 was recorded at Rp16.840 trillion, an increased from Rp13.208 trillion in the same period a year earlier.

BERITA FOTO

IIMS 2010 The international motor show went on for 10 days and was participated in by 22 sole agents (ATPM) that put 181 automotive products on display. The event was attended by around 260,000 people. A huge number of cars were sold out fetching IDR 24 trillion. This was much bigger sales figure than had been anticipated, making IIMS 2010 the most successful international automotive exhibitions in Indonesia.

Photo: The President Post/Nandi Nanti

Bakrie Subsidiary to Boost Sales of Building Materials to Rp1t By increasing production capacity, Bakrie Building hopes to book Rp1 trillion in sales in 2012.

Bakrie Building Industries (BBI), a subsidiary of Bakrie & Brothers (BNBR), is seeking to cooperate with strategic investors in China to develop new building

material products.

BNBR aims to book Rp1 trillion in sales from its building material products in 2012, said BNBR President Director Bobby Gafur Umar.

Bobby said Bakrie Building is developing its production business on building materials and that the company will increase its production capacity to boost sales.

“Bakrie Building’s installed capacity will be increased with a

Rp84 billion investment, which is expected to be completed by early 2011. Financing sources will come from our cash flow and bank loans,” he said.

By increasing production capacity, Bakrie Building hopes to book Rp1 trillion in sales in 2012.

The company posted Rp317.7 billion in sales last year.

“We are upbeat that in 2010, Bakrie Building’s sales can reach

Rp500 billion and increase to Rp1 trillion in 2012,” he said.

Bakrie Building’s current installed capacity is 218,000 tons per annum, consisting of 200,000 tons of fiber cement and 18,000 tons of metal-based building materials.

“Fiber cement control 25% of the national market share, while metal-based building materials holds 20% of the national market share,” he added.

BNBR President Director Bobby Gafur Umar

Leighton Asia wins US$155.5m contract Leighton Asia has won a five-year contract to develop the Martabe gold mine of G-Resources Group Ltd in South Tapanuli.

The subsidiary of Australia’s mining service contractor Leighton Holdings Ltd will earn A$172 million (US$155.5 million) from the contract.

Leighton Asia will build access road and other mining infrastructure, remove the overburden and drill tunnels, Leighton Asia managing director Hamish Tyrwhitt said.

Work will start early next month, the newspaper Investor Daily reported.

Intiland`s profit up steeply Publicly-listed property developer PT Intiland Development Tbk in the second quarter of 2010 posted a net profit of Rp223.1 billion, jumping 35 times from the same period last year.

Compared to the first quarter of 2010, the net profit climbed 162.1%.

“The surge in the net profit was particularly the result of increasing sales in the housing sector, particularly from Taman Semanan Indah project in Jakarta and Graha Famili project in Surabaya,” Intiland Director and Chief Executive Officer Lennard Ho Kian Guan said in a press statement issued last month.

Sales from the housing sector reached Rp392.6 billion, a 192.6% increase compared to the first half of 2009, he said.

“In the first six months of this year we recorded operating income of Rp455.2 billion, up 134% from the first semester of 2009,” he said.

Net sales from the housing sector still gave the biggest contribution to the overall income, with 86%.

This was followed by lease and maintenance services with 8%, sports facilities 5%, and the rest from other revenues, he said.

The increase in income had a significant impact on the company`s operating profit. In the first six months of 2010, Intiland`s operating profit almost tripled to Rp169.3 billion compared to the same period last year when the figure was Rp43.9 billion.

The Well-known Sari Roti and Boti

By Jeannifer Filly Sumayku

It has three features - hygienic, healthy and halal. Apart from the Sari Roti and Boti brands, Indosari also manufactures a variety of cakes called Sari Cake.

PT. Nippon Indosari Corpindo Tbk is the largest bread manufacturing company in Indonesia.

Backed up by strong shareholders, it is set to leap out of its traditional markets in Java, Bali and Lampung and target major population centers in Indonesia.

Its first factory was launched in 1997 in Jababeka Indusrial Estate Cikarang, Bekasi (2 production lines) which enabled its production of Sari Roti bread. In 2001, it doubled its production capacity with the entry of 2 ad-

ditional production lines (white and sweet bread) enabling it to launch its second brand “Boti”.

In 2005, it built new plant at Rembang Pasuruan industrial area, and due to the customer’s trust, Indosari built its second plant at Jababeka (Blok U) in 2008 with 2 production lines. In May 2010, it doubled its production capacity up to 4 production lines.

Indosari mainly sells two main products, white bread which is also known as “roti tawar” and sweet bread (“roti manis”), marketed under the brand names Sari Roti and Boti.

There are seven varieties under Sari Roti white bread and “special white bread” is its best bread.

It makes 22 varieties of sweet bread, with chocolate garnering the highest sales volume. The Boti brand also has a white bread and sweet bread range. Sari Roti’s tagline is “Empuk Bergizi Lezat Berisi” which translates to soft, nutritious, delicious with fillings.

It has three features - hygienic,

healthy and halal. Apart from the Sari Roti and Boti brands, Indosari also manufactures a variety of cakes called Sari Cake. This coems in three flavours - Pandan Chiffon, Chocolate cupcake and Pandan cupcake.

Indosari formed a partnership with Shikishima Baking Co. Ltd of Japan to transfer bread technology, technical guidance and training in bread making. With assistance from Shikishima, Indosari is able to mass-produce high quality bread unmatched by its competitors.

Indosari was ranked first in the Top Brand award in 2009 by Frontier Consulting Group and selected as Indonesia’s Favourite Food by poll from Bogasari and Jawa Pos. On average, Indosari spends 7% of revenue on advertising and promotion. Moreover, it also conducts bread factory tours for public as well as sponsors programs to inculcate bread consumption among school children.

In June 2010, Indosari had its initial public offering (IPO), floating 151

billion shares on Indonesia Stock Exchange.

As bread production utilizes substantial amounts of wheat flour, relationship with flour mills are important. The company is also ranked number one among Bogasari’s bakery clients in terms of sales.

It is also considered an advantage that Indosari has attained Hazard Analysis and Critical Control Points (HACCP) certification as HACCP performs strict monitoring and inspection involving all stages of food production.

This ensures that bread produced by Indosari are of a certified quality. Indosari’s bread is also certified halal, which renders it suitable for Muslims, who dominate 86% of the country’s population.

Indosari’s cheaper range of products comes under the “Boti” brand, which is priced at a 30% discount to Sari Roti brands. These products cater to the bottom 40% of the population.

Lower priced bread products similar to Sari Roti flavours are more afford-

Indosari formed a partnership with Shikishima Baking Co. Ltd of Japan to transfer bread technology, technical guidance and training in bread making.

According to the company’s June 2010 Financial Report, net sales and net profit rose by 22% and 43% respectively, compared to the same period in 2009. able to this group. These are usually sold through tricycles that travel to remote areas. The bread is marketed and distributed to Java, Madura, Bali, and Lampung.

According to the company’s June 2010 Financial Report, net sales and net profit rose by 22% and 43% re-

spectively, compared to the same period in 2009. Year-to-date revenues advanced to IDR287.01 billion, while net profit reached IDR41.02 billion.

The revenue increase of IDR50.96 billion was mostly driven by volume from existing facilities, as the new production line at Block U, Cikarang, and as the school holiday season in June dampened demand as has been experienced in the past.

Indosari’s sales volume for the first six months of this year of 24,527,768 packs of white bread (versus 21,738,403 packs in 06/09), and 46,688,801 packs of sweet bread (ver-

sus 36,292,246 packs in 06/09) continues to break records.

Indosari’s management is confident that its revenue and profit growth will continue to be robust and sustainable in the second half of this year. Nevertheless, with the recent hike of electricity tariff which affects both the residential and industrial consumers, Indosari shall closely monitor its demand dynamics as well as work with its various key suppliers to anticipate higher raw material costs.

The President Post

www.thepresidentpost.com

August 12, 2010 B3

Investment INVESTMENT BRIEFS Swiss-E. Java cooperation promotes access to investment The Swiss Confederation Republic administration has established cooperation with the East Java provincial administration after developing various potentials of businesses by way of investment access facilities.

“East Java’s potential drew the interest of Swiss businessmen in investing in this region,” said Djoko Susilo, Indonesian Ambassador to the Swiss Confederation Republic and the Kingdom of Liechtenstein, in a business to business (B2B) meeting, and the signing of an MoU on Swiss and East Java investment flow at Hotel Majapahit in Surabaya last month.

He said the signing of the MoU is a breakthrough and will promote industries in East Java and Switzerland.

With regard to East Java`s exports to Switzerland, he said they included textiles and essential oils.

Electricity Production Roll Up Electricity engineers fixing electrical tower in Jakarta. In the first semester of 2010, electricity production increased 11% compared to last year’s production. It reached 83,3 Twh (terra watt hour). The increase in national electricity production was due to better economic growth.

Pertamina, Kuwait to invest US$8-9b on refinery project Pertamina and Kuwait will invest US$8-9 billion to expand the Balongan oil refinery in West Java, said Industry Minister MS Hidayat, adding that the construction will start six months after both parties signed the cooperation agreement.

“The project value is US$8-9 billion with 300,000 bph capacity. Crude will be imported from Kuwait,” he said.

Hidayat said Pertamina will meet with its Kuwaiti counterparts to further discuss the project, share composition and financing.

Hidayat added he encourages Pertamina to hold a majority stake in the joint venture company with 51% of the shares.

He further said the cooperation will also ensure sufficient fuel supply in the country as Kuwait will export the crude oil for Pertamina to process.

PTBA to invest US$41.4m for Tanjung Enim steam power plant Bukit Asam is set to invest US$41.4 million to develop a 3x10 MW-capacity steam power plant (PLTU) project in Tanjung Enim. The project is part of an efficiency measure to ensure power supplies following a tariff hike as per July 2010.

PTBA Corporate Secretary Achmad Sudarto said one of the efforts to boost efficiency is by building a 3x10MW capacity power plant at its Tanjung Enim mine site to serve its own needs.

He added the company had readied US$41.4 million for the project which is taken from the company’s cashflow. ”This is important to keep production costs low continually and is also relevant because the government had started increasing basic electricty tariff for industries,” Achmad was quoted as saying by detik.com.

He added that as per June, the construction of the steam power plant was already 54.5% completed. The company hopes to start getting energy supplies fron the power plant as of the second quarter of next year.

An increase in transportation volume via train from 10.5 million previously to 11 million tons this year is expected to boost the sales volume.

“Sale volumes from PLTU Asahan is 1 million tons, PLTU Tarahan 700,000 tons, and PLTU Suralaya 5.5 million tons. So, in total we already have around 8 million tons, which account for half of the target,” he concluded.

Photo: www.thejakartaglobe.com

A Bukit Asam employee at a coal mine in Tanjung Enim, South Sumatra.

Photo: The President Post/Nandi Nanti

Japan upgrades RI’s credit rating Fitch has upgraded its credit rating for Indonesia to BB+ from B+ in 2004, one notch away from investment grade (BBB-).

T

and reduce debt cost, he said.

The posture of Indonesia`s state budget was relatively better than those of other developing nations and developed countries, he said.

The upgraded credit rating would no doubt have a significant impact on investors` interests in investing in state securities

In the past five years, the deficit of the state budget could be kept down below 2% of the gross domestic product (GDP), well below the fiscal deficits of developed nations, he said.

Over the period, Indonesia was the only country whose ratio of debt-to-GDP dropped significantly to 28.3% in 2009 from 57.5% in 2004, he said.

he Japan Credit Rating Agency has raised its credit rating for Indonesia to investment grade (BBB-) since July 13, a minister said.

“The government hopes that other credit rating agencies will soon follow suit,” Finance Minister Agus Martowardojo said at a meeting with state securities investors here last month.

Foreign investments in Jakarta account for about 45% of the total foreign investments in Indonesia, thus making Jakarta a potential international city.

“The potential for Jakarta to become an international city is huge as it accommodates 45% of total foreign investments in Indonesia,” said State Minister of National

Planning and Development Armida Alisjahbana during a discussion in Jakarta last month.

Aside from huge investments, Jakarta also has major entrance and exit gates, namely the Soekarno Hatta Airport and the Tanjung Priok Port, world-class education institutions, international-standard hospitals and headquarters of multinational companies to support it as an international city, she said.

However, she also noted several challenges that need to be overcome to achieve the goal of becoming an international city, such as the availability of energy supplies, which remains a major problem that needs immediate solution, to boost competitiveness.

“To be able to compete with other international cities, cities in Indonesia must run major economic activities in banking

Fitch has upgraded its credit rating for Indonesia to BB+ from B+ in 2004, one notch away from investment grade (BBB-).

“The government hopes that other credit rating agencies will soon follow suit.”

Agus Martowardojo Finance Minister

Domestic Firms Asked to Balance Foreign Investors Photo: www.matanews.com

Domestic investors are advised to play a role as a balancing factor against the flow of foreign funds into the country so that the domestic financial market stability could be well maintained, a cabinet minister said.

“Domestic investors such as insurance companies, pension funds, mutual funds, banks, security firms and individual or retail investors are expected to play a role as a balancing factor for foreign fund flows into Indonesia,” Finance Minister Agus Martowardojo said in a meeting with investors here last month.

According to Agus, the improvement of Indonesia’s economic fundamentals have attracted considerable interest among foreign investors.

Foreign capital flows that went through state debentures (SUN) in June 2010 alone had amounted to Rp17.96 trillion.

Until the end of June 2010, foreign ownership in SUN traded in Rupiah have reached Rp162.05 trillion or 26.09% of the total amount of tradable state securities.

“We have to remain alert on the risk of withdrawal of foreign capital flows and continue to make assurances that foreign funds would remain longer in In-

donesia,” said the finance minister.

Furthermore, the finance minister said that domestic investors are expected to contribute to balancing the swift flow of foreign funds into Indonesia.

The minister said, developing domestic state securities market has been the priority of the government, which he said will continue to encourage the development of the financial industry in the country and increase investment capacity in domestic financial instruments.

“Besides, the government would continue to improve the supporting infrastructure of state security trade activities,” the minister added.

Almost Half of Foreign Investments in RI Concentrated in Jakarta Coordinating Minister of Economics Hatta Radjasa said the government still needs to fix several areas to boost investments, especially in infrastructure.

“Many developed countries saw their ratios of debt (to GDP) exceeding 60% and even running into more than 100% and the ratios have tended to increase,” he said.

Indonesia`s good fiscal and debt management since 2004 had prompted international rating agencies to upgrade their credit ratings for the country, he said.

and services sectors, play important roles in global economic activities, have production specialization in certain fields, and be supported by sufficient infrastructure,” she explained.

She went on to say that road development doesn’t automatically overcome traffic problems in Jakarta.

She added that the most urgent matter is to create public transportation integrated with other regions and a better drainage system.

“Those problems make trips to work places take two hours, which doesn’t make sense,” she said.

Meanwhile, the British government had stated its intention to boost its investment in Indonesia, mainly in manufacturing, insurance, and banking sectors.

Visiting British Foreign Minister Jeremy Browne said British

companies are interested in increasing their investments in Indonesia because it is no longer protected, offers conducive investment climate and has fixed (trade) barriers.

However, Coordinating Minister of Economics Hatta Radjasa said the government still needs to fix several areas to boost investments, especially in infrastructure.

“We make a special note on infrastructure because the main problem in infrastructure development is land clearance, there’s a bottleneck. Therefore, we will speed up drafting law on land procurement for public interest,” he said.

Britain is Indonesia’s number four largest investor. In 2008, British investments in Indonesia reached US$513.4 million, and increased to US$580 million in 2009.

“The potential for Jakarta to become an international city is huge as it accommodates 45% of total foreign investments in Indonesia,” Armida Alisjahbana State Minister of National Planning & Development

Domestic investors are expected to contribute to balancing the swift flow of foreign funds into Indonesia.

Korean Investors Relocate Shoe Factories to RI Two Korean principal shoe producers with brands Adidas and Geox plan to build a new factory in Indonesia with a total investment of US$150 million.

“The two companies have shut down their plants in Vietnam and China for relocation to this country,” Chairman of the Indonesian Shoe Producers Association (Aprisindo) Eddy Widjanarko said following a hearing with Commission VI of the House of Representatives in Jakarta last month.

Eddy said Adidas` investment reached US$100 million, while that of Geox US$50 million.

“Representatives of the two companies had already

come and expressed their interest in investing in Indonesia,” he said.

Adidas had already secured 20 hectares of land for its plant in Serang, Banten, while Geox was still seeking 5.6 hectares of land in Pasuruan, East Java.

“Adidas` production capacity reached 850,000 pairs of shoes per year, while Geox 1.2 million per year,” he said.

Eddy said Aprisindo in 2010 is hoping that at least 10 shoe producers will be coming and operate in Indonesia with a total investment of US$600 million.

So far, four companies had already come to Indonesia with a total investment of US$200 million.

The President Post

B4 August 12, 2010

www.thepresidentpost.com

Property CUSHMAN & WAKEFIELD:

Property Booming Thanks to Upbeat Economic Situation ECONOMIC SUMMARY The Indonesian GDP continues to show positive growth at an estimated YoY growth of 5.56.0%, as the rupiah exchange rate against the US$ remained relatively stable with the stock market showing a favorable trend.

The Rupiah slightly appreciated by 0.3% during the 2nd quarter of 2010, from Rp.9,085 at the end of March 2010 to Rp.9,055 per US Dollar at the end of June 2010.

In YoY comparison, the Rupiah strengthened by 12.8% from Rp10.210 per US Dollar in June 2009.

Interest rates (1-month and 3-month SBI rate) remained at the same level. The one-month SBI rate stood at 6.3%, whilst the three-month SBI rate remained at 6.5%. Meanwhile, investment credit continued its decreasing trend and slightly declined to 13.3% at the end of May, from 13.4% at the end of March 2010.

YOY national inflation in the 2nd quarter reached 5.05%, higher than that in the same period last year of only 3.65%. This inflationary growth was mainly attributable to the increase in food prices. With this relatively higher inflation level in the first six months of 2010, the targeted annual inflation of 5.3% for the whole year of 2010 will unlikely be achieved.

The stock market continued to show favorable performance during the 2nd quarter 2010 as reflected by the increase in the ISX Composite Index and the Property Index. At the end of June 2010, the Composite Index reached 2,819, an increase from the 2,610 in March 2010, whilst the Property Index stood at 169 or increased from 154 in the last quarter.

LEASING ACTIVITIES Leasing inquiries and transactions remained favorable over the 2nd quarter 2010, mostly generated by existing tenants intending to expand their office with space requirement in the range of 80 to 300 sqm.

In addition to small size transactions, a larger leasing transaction was recorded during the 2nd quarter 2010 with the transaction of about 1,300 sqm of office space in Mega Kuningan office complex by a telecommunication company.

One ‘huge’ pre-commitment transaction also occurred during the review quarter with the transaction of 17,000 sqm in the proposed WTC 2 by Bank Permata for their office relocation in 2013.

DEMAND AND OCCUPANCY Demand for office space in CBD Jakarta continued to show positive trends. Net take up of 52,200 sqm was recorded over the 2nd quarter 2010, an 18% increase from the previous quarter’s take-up of 44,100 sqm. With this 2nd quarter’s net take-up, the total absorption of office space within the CBD Jakarta in the first six months of 2010 reached 96,250 sqm or about 138% of the total net take up in the same period last year of only 40,500 sqm.

The physical occupation in newly completed office buildings, such as UOB Tower, Equity Tower, and Bakrie Tower, which were immediately occupied by owners’ group companies, had been the major contributors to the high net take up level of the market in the review quarter.

As at the end of the 2nd quarter of 2010, the occupancy rate of the Jakarta CBD office market decreased by 1.7% to 83.7% due to the large new supply entering the market during the quarter, leaving approximately 665,700 sqm of vacant space.

SUPPLY Total cumulative supply of the Jakarta office market increased during the 2nd quarter of 2010 with the addition of Bakrie Tower in Epicentrum Complex (60,000 sqm) and Equity Tower in SCBD (83,600 sqm). This brought the total CBD Jakarta office supply

ah terms increased to about Rp. 664,400 psm (+2.4% QoQ). In US$ termsw, the average price increased to $73.4 psm. (+2.8% QoQ).

On the other hand, the average rental rate of industrial space in Rupiah terms increased to about Rp 38,830 psm pm and in US$ terms to $4.29 psm pm.

Greater Jakarta Industrial Estate Market Location of Major Industrial Estates

OUTLOOK Thanks to as combination of improving investment climate and the implementation of PP 24/2009, the industrial market will remain strong throughout the year.

Meanwhile, we expect to see more new additional supplies entering the market, while both land sales prices and rental rates tend to increase.

Legends: KIEC Krakatau IE Cilegon

KIS Kawasan Industri Sentul

MM MM 2100

KIIC Karawang Int’ Industrial City

MCIE Modern Cikande IE

JIEP Jakarta IE Pulo Gadung

JCIE Jababeka (Cikarang IE)

KIM KI Mitra Karawang

MIE Millenium IE

KBN (KB Nusantara)

LCIP Lippo Cikarang Industrial Park

SCI Surya Cipta

BSD BSD Technopark

BFIE Bekasi Fajar IE

GIIC Greenland Int’l Industrial City

KBI Kota Bukit Indah

Greater Jakarta Residential Estate Overview Location Map

Legends: 1. Citra Raya 2. Lippo Karawaci 3. Summarecon Serpong 4. Paramount Serpong 5. Kota Modern 6. Metland Puri 7. Alam Sutera 8. BSD City 9. Citra Garden City 10. Marina Coast The Bukit 11. Kelapa Gading Orchard 12. Jakarta Garden City 13. Metland Menteng 14. Jatinegara Indah 15. Jatinegara Baru 16. Kota Harapan Indah 17. Summarecon Bekasi 18. Grand Wisata 19. Jababeka 20. Lippo Cikarang 21. Kota Deltamas 22. Citra Grand 23. Kota Wisata 24. Bukit Golf Riverside 25. Harvest City 26. Citra Indah 27. Telaga Golf Sawangan UP : Upper (> Rp.1 bio /unit) UM : Upper-Middle (Rp.750 mio – Rp.1 bio /unit) MI : Middle (Rp.451 – Rp.750 mio /unit) LM : Lower-Middle (Rp.250 – Rp.450 mio /unit) LO : Lower (< Rp.250 mio /unit)

to 4.076 million sqm as of the end of June 2010.

In terms of future supply, some 101,000 sqm of new office space is scheduled to enter the CBD area until the end of 2010.

RENTAL RATES Average gross rentals remained relatively stable. At the end of June 2010, the average gross rental in CBD area stood at Rp.143,100 per sqm per month. Few office buildings, however, made adjustments on their service charges level despite the anticipated electricity tariffs increase.

Most of landlords were in a ‘wait-and-see’ mode to adjust their service charge level, following the government’s plan to increase electricity tariffs starting July 2010. The average service charge level is expected to increase in the next quarter as most buildings will adjust their service charge at the same time as the government officially announces the new electricity tariffs. On YoY comparison, the US Dollar gross rentals of CBD office increased by 12.6% due mostly to the significant strengthening of the Rupiah against the US Dollar, from Rp.10,210 per US$ to Rp.9,055 per US$ over the year.

STRATA TITLE OFFICE MARKET Additional new supply of approximately 143,600 sqm of strata title office space was recorded during the 2nd quarter of 2010, following the completion of Bakrie Tower in Epicentrum Complex and Equity Tower in SCBD. With this additional new supply, the total cumulative supply of existing strata-title office in CBD Jakarta stood at 618,800 sqm in 19 buildings.

Sales take up of existing strata title office reached 132,000 sqm, which was mostly attributable to the high sales rate in Bakrie Tower and Equity Tower. Bakrie Tower was built by the Bakrie Group and 80% of the project has been sold to group companies

even before construction. Meanwhile, Equity Tower also claimed to have achieved above 90% of sales rate by the time of its completion. As at the end of June 2010, the cumulative sales rate of existing strata title office space in CBD Jakarta stood at 90.9%.

Meanwhile, in the pre-sales market, inquiries for strata-title office showed some significant improvement over the 2nd quarter of 2010. Energy, mining and consultants were observed among the most active sectors for strata-title office inquiries during the review quarter, with space requirement of above 1,500 sq.m.

A proposed strata-title office space in five floors of The H Tower project with a saleable area of 7,700 sqm was launched during the review period. The H Tower consists of service apartments, a premium clinic and strata-title office in a single tower located at Jl. HR Rasuna Said.

OUTLOOK The average service charge is expected to increase in the range of 5% to 10% following the increase of electricity tariffs. Gross rental rates, therefore, are projected to increase in the next quarter in line with the adjustment of the service charge.

Demand is expected to remain favorable in the next quarters and occupancy is projected to increase in the 3rd quarter of 2010 due to physical take-up in newly completed buildings and less amount of new supply.

Greater Jakarta Industrial Report DEMAND Greater Jakarta Industrial market showed very strong demand in the second quarter of 2010 with a total net take-up of nearly 100ha, a significant increase of over 140% from only 41ha in the previous quarter.

On an annual basis, the quarterly net demand growth was

even more fantastic, increasing by more than 5 times from that of the same quarter last year. However, due to the large supply in the market, the cumulative sales rate of the market fell to 72.5% from 73.6% in the last quarter.

Demand for SFBs & Warehouses for sale or for lease in the reviewed quarter remained strong.

Industrial estates in Bekasi and Karawang & Purwakarta areas regained their status as the preferred location: almost 90% of the total transactions in the reviewed quarter occurred in these areas, and the balance was absorbed by estates in Serang, and Bogor.

Whilst previously we saw major demand came from local industrialists, in this quarter we began to see the return of foreign investors, especially Japanese.

However, no particular industry dominated the demand during the review quarter.

Several industries worth mentioning, among others, are automotive spare parts, pharmaceuticals, steel and food.

SUPPLY The growth in demand was well anticipated. For instance, in this quarter we saw a significant new supply of about 257ha from Lippo Cikarang with the launching of Delta Silicon 5 and Modern Cikande. Large numbers of new supplies are still expected to enter the market in the near future. With the above additional supply, the total cumulative supply of industrial land in Greater Jakarta during the reviewed quarter increased by 3.3% to about 8,134ha.

PRICES AND RENTALS Both the asking prices of industrial land and rental rates of industrial space for lease increased during the reviewed quarter.

Together with the strengthening of the Rupiah against the USD, the estimated average achieved land price in Rupi-

Greater Jakarta Industrial Report RISING SALES Sales of most residential estates have risen in terms of value. However, in terms of average take-up unit, the figurea are was still lower than that of the previous year except in Jakarta, where new housing supply received positive response given the high residential demand in the city.

Following the recovery of the residentials market since last year, several developers began to launch new clusters with larger unit sizes, attracting buyers in respective segments. Decreasing mortgage rates during the reviewed semester further support the marketing performance.

estates in Tangerang and Bekasi, which still have large land banks.

The total supply of housing units in Greater Jakarta increased by 2.5% or 5,574 units in the first half of 2010, and was recorded at 238,715 units.

Tangerang and Bekasi combined contributed 70% of the total supply while Jakarta, with few active developments, contributed only 8.1% of the total housing supply. The supply of new housing in Jakarta came from Kelapa Gading Orchard and Marina Coast The Bukit offering upper segment units. Most of the supply in Jakarta targets the upper segment market.

ly stable during the reviewed period with no major increment of building material prices. However, the increase of electricity tariff in July 2010 is expected to increase house prices throughout the balance of 2010. Sales prices increased by about 5% throughout Greater Jakarta, while construction cost rose by about 3%, during the review period.

After having launched lower and lower-middle products in previous periods, developers began to raise the housing grade by launching more middle to upper housing segments during the 1st half of 2010

After launching mostlysmallsize units in the past, developers now tend to come up with less number of units but of larger size and higher prices.

This trend of offering larger and higher priced units received positive response from the market, especially in Tangerang, which has potential buyers of middle to upper segments.

MARKET OUTLOOK The landed residential market is expected to gradually improve with the market shifting to higher segment starting this semester.

Economic stability, which has improved the general public’s buying power, will increase sales value despite less take-up units.

SALES PRICE AND CONSTRUCTION COST Construction cost was relative-

Although several developers have launched many clusters in the 1st half of 2010, market stability will see more new launches in the 2nd half of 2010.

JABABEKA’S PROPERTY INDEX January - May 2010 No.

SEGMENTS

SIZE - M2 Building

PRICES

Land

RESIDENTIAL

The Veranda Town House

1

Veranda Deluxe

294

166

Rp. 2,008,000,000

2

Veranda Corner

306

288

Rp. 2,689,600,000

Monthly take-up unit of most residential estates in Greater Jakarta decreased slightly by 3.6% from the figure in the 2nd half of 2009.

The sales rate, however, increased from 86.9% to 87.2% in the same period.

The increasing monthly takeup, in terms of sales value, in several projects compared to the previous period brought the average monthly sales value of the Greater Jakarta residential market to Rp.106.7 billion, 10.1% higher than the Rp.96.8 Billion recorded in last semester thanks to higher lump-sum prices offered by several estates.

As of June 2010, the average occupancy rate of Greater Jakarta residential stood at approximately 78.5%, an increase of approximately 1.1% from last semester’s figure.

Simprug Garden

1

Green Pine

53

112

Rp. 517,000,000

2

Yellow Pine

70

139

Rp. 585,000,000

3

Golden Pine

90

136

Rp. 800,800,000

Orchid

1

Orchid Deret

53

120

Rp. 266,500,000

2

Orchid Corner

53

225

Rp. 382,600,000

3

Orchid Corner

53

206

4

Orchid Corner (Limited)

53

189

Tropikana Garden

1

Zelosa - Standard

114

119

Rp. 854,500,000

2

Axela Standard

159

160

Rp. 1,069,000,000

Axela Standard Plus

159

188

3

Ortiz - Standard

188

300

4

Axela - Corner (Land Plot)

228

5

Zelosa - Corner (Land Plot)

262

Rp. 766,700,000

6

Ortiz - Corner (Land Plot)

349

Rp. 1,021,500,000

Metropark Condominium Tower A

1

Deluxe , 2nd fl

27/1 Bdr

Rp. 218,950,000

2

Deluxe ,3rd fl

27/1 Bdr

Rp. 218,950,000

3

Deluxe, 5th fl

27/1 Bdr

Rp. 224,500,000

4

Deluxe , 7th fl

27/1 Bdr

Rp. 257,500,000

5

Premium, 7th fl

54/2 Bdr

BEST SELLING UNITS Demand for upper segment houses was increased in Tangerang and Jakarta, following the launching of several clusters that offer houses for around Rp.1 billion.

Strong demand for middle houses was also seen in Bekasi area. Improvement in the size and price of houses offered were observed during the review semester with most houses offered were in the price of less than Rp.750 million or above Rp.1 billion.

The most popular units were priced at around Rp.1 billion (in Jakarta), Rp.600 million to Rp.700 million (in Tangerang), Rp. Rp.400 million to Rp500 million (in Bekasi), and around Rp. 250 million (in Bogor).

Metropark Condominium Tower B

5

Deluxe , 2nd fl (view Metro Blvd.)

27/1 Bdr

Rp. 218,950,000

6

Deluxe, 3rd fl (view Metro Blvd)

27/1 Bdr

Rp. 218,950,000

7

Deluxe , 5th fl (view JCBD)

27/1 Bdr

Rp. 224,500,000

8

Premium, 6th fl (view JCBD)

54/2 Bdr

Rp. 462,600,000

9

Deluxe, 6th fl (view swim. pool)

27/1 Bdr

Rp. 261,900,000

10

Deluxe , 7th fl (view swim. pool)

27/1 Bdr

Rp. 261,900,000

Pavilion-Exclusive Boarding Houses

1

Grande-Corner

COMMERCIAL

METHOD OF PAYMENT Following the decline of mortgage rates, the proportion of purchases with KPR payment increased in the 1st half of 2010.

Our study revealed that buyers of upper segment houses, either end users or investors, opt for this type of payment.

The home loan/mortgage (KPR) is still the most preferred payment method, representing around 61% of methods of payment used. The lower-middle segment utilizes KPR the most, of around 77% of purchase in this category.

SUPPLY There are approximately 11,514 hectares of developed area in our residential estate basket of the Greater Jakarta area. The majority of active developments are in

Rp. 364,800,000 Rp. 424,600,000

Rp. 1,143,200,000

Rp. 1,595,500,000 Rp. 667,200,000

Rp. 463,050,000

221

216

Rp. 1,287,000,000

Hollywood Plaza 1

Commercial B - Module SFB

552

552

Rp. 3,838,500,000

2

Commercial B - Module SFB

682

552

Rp. 4,147,000,000

3

Commercial A - Module Studio

1,229

967

Pavilion Niaga

1

Block A3

100

2

Block A2

Ruko Sunter Niaga Mas

1

Rp. 7,209,500,000

50

Rp. 575,000,000

100

50

Rp. 575,000,000

Corner

165

71.5

Rp. 1,025,000,000

2

Standard

120

52

Rp. 750,000,000

3

Standard

120

44

4

Standard

120

53

Ruko Sentra Niaga Square

1

Standard 1 (4 x 11), 2nd fl

80

44

Rp. 508,000,000

2

Standard 2 (5 x 10), 3rd fl

150

50

Rp.715/727 Million

3

Corner (6 x 10) , 3rd fl

180

60

Rp. 891,000,000

4

Standard 1(4 x 11) , 2nd fl

80

44

Rp. 495,000,000

5

Standard 2 (5 x 10) , 3rd fl

150

50

Rp.715/727 Million

6

Corner (6x10) , 3rd fl

180

60

INDUSTRIAL

Rp. 700,000,000 Rp. 755,000,000

Rp. 891,000,000

SIZE - M2

Land

Factory

Office

1

Grand Standard Factory Building

2000-3500

830

115

start from Rp.4Bn

2

New 3-IN-1 Factory Building

576-1260

304

124

start from Rp.1,8Bn

3

Comercial Office Building

500

356

Rp. 1,700,000,000

4

Standard Office Building

425

160

Rp. 1,200,000,000

5

Land Plot

min 5000m2, $80

SALES and MARKETING OFFICE Jababeka Center, Plaza JB Jl Niaga Raya Kav 1-4 Kota Jababeka, Cikarang Baru Bekasi, West Java, Indonesia Ph. (+62 21) 893 4350 Fax. (+62 21) 893 4331 / 4038

Notes: The Above Prices are not Included: Tax 10%; PPAT; BPHTB fee; KPR/Notarial Fee and can be changed without prior notice

The President Post

www.thepresidentpost.com

August 12, 2010 B5

Around Jababeka The Story of Indonesia’s Shenzhen

Indonesia Movieland

An Integrated and One-Stop Shooting Location for their benefit,” said Made.

Another promising business is the various needs of the people at the area, which consists of various economic classes, from the upper to the lower.

Located in the eastern outskirt of Jakarta, Bekasi Regency has become one of the most promising industrial areas in Indonesia with 7 major industrial centers—Jababeka Industrial Estate, Lippo Cikarang, Delta Silicon Industrial Park, Hyundai Industrial Park, Megapolis Manunggal Industrial, East Jakarta Industrial Park (EJIP), and Bekasi International Industrial Estate (BIIE).

This special area in Bekasi housing the factories of major companies has attracted the attention of many businessmen for which reason the industrial regency’s popularity is rising fast.

It was only farming and traditional brick homemade area before PT. Jababeka started to develop an industrial area at Cikarang Bekasi in 1989. Since Jabebeka’s entry, the potential of the area has attracted many business players.

On of the major companies that entered the area then was Unilever. This was followed by other companies such as Mattel, Toshiba, Panasonic, Samsung, LG, Honda, Nissin, and Akzo Nobel.

The involvement of those com-

panies enhanced the development of the area. For instance, they attracted vendors to establish office in the area.

Since then many people have worked there, bringing in another need: residential places for the employees. So Jababeka moved on to satisfy the need.

“We supply their residential needs,” said I Made Surya Darma, the Marketing General Manager of Residential.

There are more than 1,200 companies hiring 600,000 employees in the area. There are well over one million people in average, either locals or newcomers, doing their daily activities in Jababeka. The growing number of local population demonstrates

how promising business is in this area.

Jababeka’s business opportunities also include the needs for food and beverages, transportation, education, health, and entertainment. This has also triggered a boost in economic development of the area.

In this the 5,600 hectare area, Jababeka created a comprehensive industrial center, complete with hotels, apartments, hospitals, schools, universities, health centers, banks, restaurants, and shopping centers. Jababeka also provides the area with rumah toko (shops that function as a house) for the people to gain easy access to their daily needs.

Various Classes Jababeka also provides infrastructure access to the area, such as toll road and railway. The high volume of traffic has caused Jababeka to increase land access to the area to reduce traffic jams.

“We always do our best to give our tenants access and facilities

One of the businessmen happily doing business in the area is Wirijadi Sudarto. The 55 year old man has been running a furniture business here for 7 years.

He reports an annual increase in income due to the growing market potential, from companies to residents.

Wirijadi is also satisfied with the facilities he receives to support business. “I never have any problem with security, clean water, electricity,” he says.

A food and beverages businessman, Irwan Eslim, has the same opinion as Wirijadi’s regarding the facilities.

Although it has only been 2 months since he started business by opening a Mie Cendol restaurant, Irwan spots a promising business potential at Jababeka. This is the reason for him to retire early as an employee and start a business of his own at Jababeka.

Irwan finds the number of people growing quite significantly, and their purchasing ability quite encouraging.

“They are complimentary to each other,” said a father of two who has been living in Jababeka for 14 years.

“This area is developed for the benefit of businessmen like me,” adds Irwan.

“Take the place where I run my current business. The location is strategic for being close to residential area and offices, giving easy access to my customers. Jababeka understands the needs of its residents and tries to adjust itself with the needs.”

Film industry players are concerned about the importance of time when shooting a film. The sooner they can complete their work, the bigger cost production can be saved.

Ideally, they can do all their shootings in one place to prevent them from switching locations.

Indonesia Movieland is present as an answer to the problem. Some production houses acknowledge how they have been helped by the presence of Indonesia Movieland, which has various integrated filming facilities.

Andi from Soraya Film says, “The bureaucracy is simple and uncomplicated thanks to the help of Indonesia Movieland’s team. Our shooting time becomes more effective and efficient”.

“We don’t need to move far away from one location to another location,” said Paijo from Magentha Prima (Nayfosindo Production).

Indonesia Movieland provides various shooting locations, all of which all can be found in the Jababeka City area.

For starters there are luxury residential homes, apartments, villas on the edge of a golf course, and parks and gardens. Then there is a school and university area, a mall, offices, a hospital and cafes and restaurants with international standards, all of which are available as shooting locations. All of this makes it convenient for movie industry play-

Indonesia Movieland provides various shooting locations, all of which all can be found in the Jababeka City area.

Shooting activities that had been done in Indonesia Movieland are “Pengorbanan Anggun”, Reality Show “Bedah Rumah”, “Honda Jazz” advertisement, “Musafir Cinta” and “Rendy Anak Ajaib.” ers to shoot in Indonesia Movieland.

Currently, there are several activities at the location of Indonesia Movieland, such as the shooting of TV programs, soap operas and ad spots as well as the monthly event Movie Screening.

Shooting activities that had been done in Indonesia Movieland are “Pengorbanan Anggun”, Reality Show “Bedah Rumah”, “Honda Jazz” advertisement, “Musafir Cinta” and “Rendy

Anak Ajaib.”

Indonesia Movieland is the first Indonesian center of integrated TV and Film industry. The area houses many facilities for movie production such as studios, post-production facilities, the President International Film Academy, the National Movie Centre and various other supporting facilities such as hotels, 24-hour cafés and entertainment centers, residential and commercial areas.

The Hollywood Plaza is now under construction.

Indonesia Movieland was built on 36 hectares of prime land within Jababeka City, which is equipped with central power plants so that clients don’t have to bring generator cars to the shooting location.

For more info: Suwartono 021 893 4580 ext 363 / 434 or 0816 936 596

The Chinese Students Found Cikarang Environmentally Friendly

Students Joking at Golf Residence.

Global warming issues remain at center stage, so the campaign to reduce the dangers of climate change must continue in a consolidated manner.

We are all asked to be concerned and preserve the environment in order to maintain the temperature of the earth so as not to heat up. The property industry, especially housing, is inseparable from the discourse on the major issue.

To present a comfortable and safe residential area and to create harmony between residents, one must begin by considering the balance with the environment.

Developers should exercise wisdom and understand exactly how to treat nature. Therefore, all of the land they manage should not necessarily

be transformed into houses; some of it must left to reflect their concern for greenery.

Hence, as the developer of the city that is concerned with the environmental balance and harmony in every concept of development, Jababeka built jogging tracks that can be utilized by residents.

The cool and comfortable atmosphere and shady trees complement the 10km jogging track.

The jogging track connects several green areas in Jababeka City such as the Jababeka Botanical Garden and the exclusive Veranda Golf Town House. The jogging track also connects an educational area, Jababeka Education Park, where international students of President University live and study.

International Seminar on

Linking Business and Culture to Create Friendship and Prosperity (August 28th 2010 / at 1.30 PM Sheraton Hotel Yogyakarta)

“Super Saleswoman”

the bonuses can be used for her hobby.

“My hobby is shopping, so the incentives and shopping vouchers from GB Club are very helpful.”

Besides the incentives and reward points, GB Club members will also be given a membership card that gives many privileges at many of GB Club’s partner merchants. ”I can also use my membership card at GB Club partner merchants” said Vera.

No matter how busy she is as a lawyer and mother to her only son Kislew Alveri Y. Himawan, Mrs. Manulang still wants to be an active member of GB Club. ”I’m still sending recommendations via text messages until today. I might win the reward to go to Pattaya this year.”

PUPPET SHOW COMEMORATING THE STORY OF R. GUNUNG ROMO PRAN SOEH A JAVANESE SAGE TO MEDIATE WORLD CONFLICT IN A MODIFIED EPIC STORY OF RAMAYANA

Moderator: S.D. Darmono

(President of IABC/CEO of PT Jababeka Tbk /Founder of THF)

RSVP:

IABC +6221 521 1540 Fax:+6221 521 1541 functions@iabc.or.id

Panelists: Mr. Edward Lee (Ambassador of Singapore 94-06) Prof. Komaruddin Hidayat (Rectors of UIN) Pdt. Natan Setiabudi Followed by Djangkung Soedjarwadi (Cultural Observer) Followed by

Speakers: Paul Robilliard (Australian Embassy) Sabam Siagian (The Jakarta Post)

Vera R.A. Manulang, a Lawyer and Young Mother

Networking can be an opportunity to reach loads of fortune. Joining GB (Get Buyers) Club Kota Jababeka is a good beginning to develop your network.

Many Jababeka residents, as well as outsiders, have taken advantage of GB Club. Joining the club is very simple, only by sending recommendation via text message, and the path to income and success is already yours.

One of the happy members of GB Club is Mrs. Vera R.A. Manulang. The young mother of a son joined the program on October 5, 2009.

Despite being a busy lawyer, she spared her time to send a recommendation via text message to GB Club SMS Center (0811114580). ”It took less than 5 minutes, nothing to loose” said this woman, wife of a coal mining businessman.

Using her network as a lawyer, the lady managed to get incentives and reward points for the 2009 GB Club program. Vera is very happy because

THE RIGHT PLACE TO DISCOVER LOCAL WISDOM AND THE OLD CAPITAL OF INDONESIA

Theater Ramayana Candi Prambanan Yogyakarta

Jakarta +6221 574 1105/572 7337 fax:+6221 572 7338 Anto 081808004939 Martin 087878250014 PT Taman Wisata Candi Borobudur Prambanan dan Ratu Boko

Registration Fee: IDR.200.000 (Magister Students/IABC members); IDR.350.000 (Non-Members)

Registration and RSPV Close at August 26th 2010

(August 28th 2010 / at 07 PM)

Magelang Borobudur Int’l Golf & Country Club Jl. A Yani Magelang (+62293)893 4580 (Fera)

Magister Sistem Tehnik Fakultas Tehnik Universitas Gadjah Mada

Yogyakarta MST (Magister Sistem Tehnik) Universitas Gadjah Mada (+62274) 631182 (Achmad Sulaiman) (+62274) 550504 Please Transfer Registration fee to: Beneficiary Name: Yayasan Heritat Tidar Account Number:101-80000-1899 Bank Name: OCBC NISP Plaza Jababeka LIMITED SEATS AVAILABLE

The President Post

B6 August 12, 2010

www.thepresidentpost.com

Markets JULY INFLATION:

Figure 1. Indonesian CPI Inflation

More Than Just Higher Than Expected

2.5

14.3 Headline Inflation (%MoM, lhs)

2.0

12.5

Headline Inflation (%YoY) BI Rate (%)

1.5

10.8

Core Inflation (%YoY)

9.0

1.0

7.3

0.5

5.5

0.0

3.8

-0.5

2.0

05 06 07 08 09 10 1 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

2008

2009

2010

Source: BPS, CEIC

Figure 2. Indonesian Foreign Trade: Monthly

By Helmi Arman and Anton Gunawan

J

uly inflation was reported to be 1.57% m-o-m or 6.22% yo-y, which is substantially higher than our forecast and consensus (5.7% y-o-y).

Food prices rose by much higher than expected: The increase in prices of rice, chilies and onions continued and even broadened, while a rise in car registration renewal tariffs – it is officially administered – caught us by surprise and contributed 0.2pps to inflation.

Yet, even if one argues that the food price increase is seasonal, there are two factors that dampen our optimism on Augusts’s inflation number.

Firstly, the impact of the recent electricity tariff hike is apparently not yet accounted for in July’s inflation number (we had thought it would contribute 0.2pps to July’s inflation).

Secondly, the rise in school tuition fees (which usually shows up in July, August and September) has only been marginally accounted for July.

This means that August inflation will get another boost by those components, not to mention the Ramadan fasting season that will start soon.

If month-on month inflation continues to remain high over the

USD bn

3.5

Headline CPI (% chg y-o-y)

Jul-10 (Actual)

Jul-10 (Fcast)*

6.22

5.69

Jul-10 (Cons.)

5.73

Jun-10 5.05

May-10

2.5

indonesian foreign trade: trade surplus further narrows Jun-10

4.16

May-10

Apr-10

Mar-10

Headline CPI (% chg m-o-m)

1.57

1.06

1.10

0.97

0.29

Export Growth (% y-o-y)

31.0

37.4

42.4

48.3

Headline CPI (% chg y-t-d)

4.03

3.51

3.55

2.42

1.44

Import Growth (% y-o-y)

47.6

30.6

67.5

67.4

Core CPI (% chg y-o-y)

4.19

n/a

4.06

3.97

3.81

Trade Balance (US$bn)

0.58

2.67

0.80

1.80

Source: Bloomberg, CEIC, *Danamon estimates

next couple of months (despite partially being due to seasonal factors), we are worried that inflation expectations may rise further and trigger a broader-based increase in inflation. We may be seeing signs of this already: core inflation rose to 4.15% y-oy from 3.97% in Jul-09 despite a decline in gold prices.

Separately, June trade data showed the trade surplus narrowing to US$0.6bn, from US$2.7bn in the previous month. Exports declined slightly from the previous month while imports increased substantially.

The decline in exports was due to lower oil and gas exports (from US$2.4bn to 1.9), while non-oil and gas exports slightly increased (from US$10.3bn to 10.4). We don’t see any worrying trends here although June registered a decline in exports to the EU, which may be worth watching.

Meanwhile, the rise in imports appears to be broad-based across commodities. Both oil and gas &

Source: CEIC, BPS

non-oil and gas imports rose.

Consumption goods imports rose strongly (23% m-o-m) although in value terms the rise in imports was contributed more substantially by raw materials and capital goods imports.

The strong rise in imports is unsurprising. Judging from the real effective exchange rate, the rupiah is already stronger in trade-weighted terms compared to its pre-crisis (2008) levels.

A faster rise in imports would be a logical consequence to this, especially if domestic manufacturing output doesn’t keep up with the growth in demand. We’ll have to watch how the trade balance fares going forward.

A fast narrowing trend of the trade surplus could indicate that the rupiah, now at below Rp9,000/US$, is already too strong.

Policy and Market Implications July’s year on year inflation number is likely to exceed BI’s

4 – 6% forecast range this year.

However, BI, given its apparently strong emphasis on growth, may not necessarily respond immediately with a rate hike. We expect them to wait for incoming data while in the meantime add a more hawkish tone to their monthly monetary policy statements.

Yet, after the current inflation numbers, we think the likeliness of BI raising rates as soon as Oct2010 (vs. our baseline forecast of Jan-2011) has just increased a notch.

Meanwhile, the 5-yr local currency bond yield rose to 7.62%, or by around 18bps from last Friday’s close following the July inflation announcement. The longer end of the curve was little changed. Until year-end we see potential for a bear-flattening of the curve up to the 10-yr tenor, although we are quite comfortable with the 15yr and above given the still wide term spread over

80

Trade Balance (lhs) Export (fob) Import (cif)

3.0

%YoY

60 40

2.0

20

1.5

0

1.0

-20

0.5

-40

0.0

-60 01

02

03

04

05

06

07

08

09

10

11

12

01

02

03

2009

04

05

06

2010

Source: BPS, CEIC

the 10-yr.

We think the 5-yr yield hasn’t yet fully factored-in our potential 100bps BI rate hike scenario. Ever since the 1M holdingperiod for SBIs was introduced, bond yields—especially in the short-end—appear to be “distorted” downward by the apparent inflow of fast money that has been betting for IDR appreciation. (Note that the implied yield from 1M NDF swap points has been slightly negative since the last week of July).

However, in this regard, we should be prepared to see a significant correction (especially on the 5-yr and shorter tenors) if the market’s view on the IDR/USD changes. Our expectation is now for the 5-yr yield to head towards 8% by YE10.

Helmi Arman is Economist Treasury & Capital Markets at PT Bank Danamon Indonesia, Tbk. He can be contacted at helmi.arman@danamon.co.id

Figure 3. IDR sovereign yield curve 9.5 9.0 8.5 8.0 7.5 Yield Graph 1266 07/30/10 Indonesia Sovereign 1266 08/02/10 Indonesia Sovereign

7.0 6.5 6.0

1266 vs 1266 0.1 0.0

1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y

15Y

20Y

30Y

Source: Bloomberg

Figure 4. Indicative term spread: 10 - 15yr IDR bonds 12.0000

Hi: 11.5935

INDOGB 11 11/20 Corp 8.0230 INDOGB 11 09/25 Corp 8.8129

Hi: 11.0336

11.5000

SPREAD SUMMARY

10.0000

Last Mean Off Avg Median StDev Off Avg StDev Percentile High 03/18/09 Low 01/05/09

10.5000 10.0000 9.5000 Low: 8.7923 Low: 7.9540

-21.262 9.0000 8.8189 8.5000 -22.913

8.0230

Hi: 107.432037

INDOGB 11 09/25 Corp - INDOGB 11 11/20 Corp 79.591743

100 79.591743 60 40

Low: 19.48616 Aug

Sep

Oct

20 Nov

Source: Bloomberg

Dec

Jan

Feb

Mar

Apr

Mei

Jun

Jul

79.5917 61.1000 18.4917 65.9002 18.8651 .98 87.10 107.432 19.4862

OCCURENCES 120 100 80 60 40 20 0

0

5

10

15

20 25

The President Post

www.thepresidentpost.com

August 12, 2010 B7

Human Capital Leadership in Family Business

By A.B. Susanto

Photo: www.bizaims.com

If a family business wants to survive, the next generation should also possess excellent leadership qualities.

L

eadership plays a pivotal role for the success of an organization. Family businesses are no exception. Most family businesses are owned and managed by family members. The development of a family business depends largely on the founder’s psychological situation, vision, and ambition.

A founder also serves as a leader. A family business is pioneered by founders who are good not only in developing business concepts, but are also persistent and keen in executing those concepts as well. They have an orientation towards achievement and do not like repetitive and routine work.

Founders are creative, energetic, tough, and imaginative people.

Their willingness to take calculated risks enables them to make transformations.

Leaders of successful family businesses possess several characteristics. They are able to accommodate the opinions of others. However, they are also decisive since it is the job of a leader to make decisions. They have a clear vision to share with family members and employees, never stop hunting ideas or searching for new opportunities, and are very good in executing plans

to be afraid of stock price pressure. By applying a more flexible schedule, a family firm can also focus more on satisfying needs, maintaining customers, and training and developing leadership skills for the next generations.

and strategies. They are also able to do and manage many things, take responsibilities, and have good track records built through meeting with others, networking and cooperation.

There are some interesting findings regarding decision-making patterns in Indonesian family businesses, based on surveys conducting by The Jakarta Consulting Group. The concept of togetherness in making decisions and strategic policies is strongly maintained by 74 percent of family businesses in Indonesia.

Another finding is the fact that in 82 percent of family businesses, non-family member managers always ask for approval from leading family members. Family members who hold key leadership position play an extremely significant role in decision-making. Consequently, professionals have to consult with family members before making decisions.

However, if a family business wants to survive, the next generation should also possess excellent leadership qualities. Next generations are often considered to be in lack of leadership qualities in comparison to senior leaders.

They are also considered to be in lack of clear vision, the spirit in running the company, charisma,

A harmonious work relationship between seniors and next generations is very important to ensure a smooth transfer of power, as suggested by Cabrera-Suarez, De Saa-Perez and GarciaAlmeida. When the time comes, senior generations have to be willing to hand over the leadership to their successors. It often happens that senior generations are reluctant to hand over the business management to the younger generation by putting forward many excuses. They are reluctant to provide training and counseling and often interfere with daily business activities.

The next generations need transfer of knowledge regarding company and industry. Also, they need knowledge and skills to improve their competence.

It is the job of the senior generation to transfer such knowledge. decisiveness and the ability to execute, to capitalize on opportunities and to take and manage responsibility, and so on. The next generations’ lack of skills might be the consequences of senior leaders’ attitude and policies.

To become an excellent leader, one cannot simply depend on talent. Leadership quality should be

nurtured early. Cater III and Justis has revealed six factors contributing to the success of leadership development for the next generations. Those factors are namely positive parents-children relationship, long term orientation, the spirit of cooperation, fast and thorough knowledge acquisition regarding company and industry, the role of manager-develop-

er, and risk-taking tendency.

If parents want their children to take ownership and control of the family business someday, they have to make preparations early.

The best way to start is create ties based on trust and respect.

Long-term orientation enables a family firm to arrange a more flexible schedule without having

The next generations need transfer of knowledge regarding company and industry. Also, they need knowledge and skills to improve their competence. It is the job of the senior generation to transfer such knowledge. According to Goldberg, effective successors always experience mentoring relationships. This means that senior generations have to act as a mentor for their children.

It is important for the senior generation to help their children develop their entrepreneurial skills so that new opportunities can be identified and capitalized in an optimal manner.

Senior generations and the younger ones take different approach regarding risk. The senior generation tend to be more conservative, while the younger ones tend to be more creative, aggressive and tolerant toward risks.

However, the family firm should have more courage to take calculated risks.

Leadership development programs for the next generations should be designed thoroughly and be relevant to individual and organizational needs. In designing such programs, there should be close cooperation between younger generations, parents, and non-family professional managers. The effectiveness of leadership development programs should be measurable in a clear, transparent and fair manner. To ensure support for leadership development programs, a family firm needs to create a system which gives young generations opportunities to use their growing knowledge and skills.

Accountability could be nurtured through the creation of a system which obliges leaders to take responsibility and ensure that expected behavior is an integral part of organization culture.

A successful leadership development initiative also requires experts who understand the process of learning facilitation.

The writer is dean of the Faculty of Economics, President University, and Managing Partner of THE JAKARTA CONSULTING GROUP.

John Vijayarangam Director & CEO Potentia HR Consulting

Executive Search I HR Consulting I Training

What, How & Why of Competencies

By John Vijayarangam

“Excellence is an art won by training and habituation. We do not act rightly because we have virtue of excellence , but we rather have those because we have acted rightly. We are what we repeatedly do . Excellence , then, is not an act but a habit.“ - Aristotle -

S

mart CEOs know that people are the key competitive advantage regardless of economic circumstances or market challenges. An increasing number of companies and paying more attention to selection procedures, and consistently investing in identifying and growing their people.

Over the last several decades there have been several interventions and strategies proposed by management gurus to achieve excellence in organizations. HR professionals have experimented with a variety of tools and techniques. In the recent past ‘ Competency Based HR Systems ‘ proved to be a hot favorite.

What are the basics? It should be borne in mind that competencies are defined differently in different counties. As long as the basic concepts are understood it should be OK. • WHY are Competency Models required for building excellence • WHAT are competencies and how do you identify them • HOW can organizations implement Competency Models for making improvements in areas of a a) Recruitment b) Performance Planning and c) Training

WHY competency Models?

Millions of dollars are spent by

STUDY ORGANIZATION NEEDS & GOALS SKILL

SELF CONCEPT the large automotive companies in developing a perfect model of a car or prototype before they start churning out cars in the assembly line. With a faulty model Toyota has learnt the hard way. that millions can be lost, simply because the prototype of model car was wrong in the first place.

Are organizations able to calculate the possible losses for lack of a ‘behavioral model’ for new entrants to copy.

It does not require much IQ to figure out that likewise you need a reasonably good ‘model‘ to recruit, develop and grow good managers. The sad fact is most organizations do not have one.

Most often the model is left to the imagination of the employee, or he copies his ‘boss’ who may not be the right model. When we talk of ‘behavioral models‘ we enter the realm of an ‘imperfect science‘, hard to define, and more difficult to comprehend. The consequence of this is that we leave the grooming of skills and competencies of the most critical resource ( our human resources ) to good luck and chance.

The case is simple and straightforward – with a good competency model – companies can hope to produce better managers.

WHAT are Competencies?

Competencies are underlying characteristics in an individual which can lead to excellent performance. A competency

TRAITS

Analysis of Jobs/Roles/Goals

CORE MANAGEMENT TEAM

KNOWLEDGE Select Competencies

It should be noted that Competencies/or Competency Models are context bound. They answer the question “What does a outstanding performer look like in a specific organzation/function or environment”. The top five in

school or college are certainly not the top five in business.

Lyle Spencer/Signe Spencer in ‘Competence at Work‘ provide very useful models for superior performance.

Five Types of Competency Characteristics: There are two important things to note about the competencies listed below: • The first two competencies (knowledge/skill) are comparatively easier to indentify in individual, they are above the waterline. However the other competencies like self concept, motives are below the waterline and need more probing to identify.

• It is comparatively easier to acquire Knowledge/Skills compared to trying to change an individuals motives, or self concept which are more deeply ingrained. Companies ought to recruit candidate with kind of ‘motives’ they need and then train from Knowledge/skills, unfortunately quite a few com-

Define competency/Profiles

VALIDATE & IMPLEMENT

MOTIVES Competency Culture

predicts superior performance which can be measured. Organization would be better off looking for these competencies in new recruits to reduce the risk of recruiting lemons.

A competency model refers to a group of competencies required in a particular job and usually number is about 7 to 9 competencies in total. The number and type of competencies in a model will depend upon the nature and complexity of work.

The smarter HR Managers in leading organizations have been using competencies to help recruit, select and manage their outstanding performers after Dr David McClelland proved that the traditional academic and knowledge tests do not predict success in the job.

Data Collection/Benchmarking

panies do the opposite.

1. Skill: Operating a lathe machine, car racing, and painting, mental maths, chess, are examples of physical or mental abilities.

2. Knowledge: Information I have about the market for coal, banking, textiles or HR strategic planning are examples of knowledge competencies.

3. Self-concept: Your self-confidence or lack of this, superiority complex, are examples of Self Concept. This concept can greatly influence performance and behaviors. Changing self concept is much more difficult than learning additional skills or acquisition of knowledge.

4. Traits: We find executives being typically patient, shorttempered, or blessed with special skills like airline pilots with good reaction skills under strees. These are examples of physical or mental characteristics and responses to events, conditions, and experiences.

Training/Sustain

5. Motives: What drives behavior and what makes you tick?

Why does one engineer use his knowledge and skills to make inventions to bring benefits to mankind, whilst another could use his engineering skills to make bombs and blow up people to bring misery to people? What do you keep thinking of or wanting 24 hours of the day.

How to implement competency models: The implementation of “Competency Based Systems“ starts with a deep understanding of the needs, outcomes, and expected goals of an organization. The next step would be to study the top performers to analyses the key characteristics, traits, attitudes that led to success. A core group would be selected to carefully select, brainstorm and define the competencies.

Individuals can be tested for competencies using the BEI (Behavioral Event Interview) method

or through other measurement assessments. Our experience with the Hogan Assessment Systems (www.hoganassments.com) have paid rich dividends in making selection decisions, identifying talents, and for coaching and counseling initiatives.

Success for implementation of a program will largely depend on the support and commitment from the Top Management Team and an enthusiastic HR Department well trained to deliver and train down the line. The culture and mindset change will only be realized over a period of time if the competency models are closely integrated with recruitment process, training programs and performance management.

Please send in views and comments to johnvrangam@potentiahr.com.

Author is John Vijayarangam Director & CEO of Potentia HR Consulting, www.potentiahr. com, John has over 30 years of HR experience the Asia Pacific with leading multinational corporations.

The President Post

B8 August 12, 2010

www.thepresidentpost.com

Executive Highlights Parliament’s finance commission has approved Darmin Nasution’s nomination for Bank Indonesia governor.

Darmin, 61 years of age, has been acting governor since Boediono resigned in May 2009 to become Yudhoyono’s running mate in last year’s presidential election. Prior to his posting in the central bank, Darmin served as director general for taxes from 2006-2009 under finance minister Sri Mulyani.

He is credited with spearheading bureaucratic reforms in the tax office. Darmin also served as director general of financial institutions from 2000-2005 and chairman of the capital markets watchdog (bappepam) in 2006.

A key issue that Darmin plans to focus on as governor is finalizing financial safety net legislation to better anticipate future global financial meltdowns. Another priority item will also be to help set up a new financial services authority (OJK) that will assume bank oversight functions currently carried out by the central bank. Darmin said he also plans to strengthen Bank Indonesia’s internal oversight to improve accountability and transparency, amid scrutiny over past corruption at the bank.

Bank Indonesia Deputy Governor Budi Mulya said there was little urgency for the central bank to tighten monetary policy.

The comments were made during a recent meeting of AsiaPacific central bankers. The remarks suggest that Bank Indonesia will likely keep interest rates at 6.5% for the foreseeable future, despite inflation rising to a 13-month high of 5.1% this June.

The deputy governor suggested that the recent volatility in consumer prices were temporary and could be attributed to food supply problems due to abnormally wet weather over the past several months. He acknowledged the recent hike in electricity tariffs, Pertamina’s plans to raise LPG prices and Jasa Marga’s plans to raise toll road rates would push inflation higher. Budi, however, indicated that inflation pressures overall were still contained.

He also said that a strong rupiah would help curb inflation pressures. Bank Indonesia is currently forecasting inflation of 4-6% for 2010.

The Rupiah has been relatively stable and trading in the Rp9,0309,100/US$ range over the past week.

Solid capital inflows continue to support the rupiah. Foreign buying of Indonesian equities has pushed the Indonesia stock index (IDX) to successive all-time highs in the third week of July, beating the highs of April and pre-2008 global financial crisis levels. The IDX psychological barrier of 3,000 has also been broken. Inflation remains a concern, but many analysts say the rupiah still has further upside in the second half of the year supported by the country’s political stability, ongoing fiscal reforms and strong monetary policy.

billion.

The airplanes are scheduled for delivery in the fourth quarter of 2012. The newly ordered A330200s will be powered by RollsRoyce’s Trent 700 engines, and will feature a two-class layout for flights to destinations across the Asia-Pacific region, as well as to the Middle East and Europe.

Garuda already operates four A330-200s delivered last year, as well as six A330-300s. Airbus chief executive Tom Enders asserted that the latest deal reaffirmed the firm’s long-term relationship with Garuda. He said the order underscored the A330s status as the most efficient aircraft in service in the mid-sized category. Garuda president director Emirsyah Satar said the A330-200s were a proven success both in terms of lower costs and passenger appeal, adding that it was the perfect vehicle to offer new premium services for its international flights.

State miner Aneka Tambang (Antam) has signed an agreement with China’s Hangzhou Jinjiang group to build a US$1 billion smeltergrade alumina plant in West Kalimantan.

Resources in a US$515 Berau Coal Energy is million deal. eying up to US$310 million in proceeds In its statement, the Korean power utility said the acquisition would from its August initial help ease difficulties in securing and shipping Indonesian coal giv- public offering (IPO). en Bayan’s onshore and offshore terminals. As part of the deal, Kepco signed an off take agreement with Bayan for two million tons of coal per year starting from 2012, and seven million tons per year from 2015. Kepco will acquire its 20% stake in Bayan from Indonesian billionaire and founding shareholder Low Tuck Kwong and local investors Jenny Quantero and Engki Wibowo. These shareholders will still retain stakes in Bayan following the deal. Bayan currently operates eight coal mines in East Kalimantan and South Kalimantan.

The miner is projecting annual coal output to rise to 15 million tons this year from 11.4 million tons in 2009. Its average coal selling price for 2010 is forecast at US$65-69 per ton.

Selected Instant Indicators

14,159

14,500 14,000

15,150

13,500

14,500 13,850

13,000

US$ (LHS)

13,200

12,500

100 YEN (LHS) EURO (RHS)

12,550

12,000 11,500

11,900 11,250

11,000

10,412

10,000

9,950

9,500

9,920

9,300

9000 9,055

8,650

8,500

8,000

8,000 Jul 09

A

Sep

O

N

D

J-10

F

Mar

M

A

2009

J

23 Juli

2010

STOCK MARKET INDEX

IDX 3,100

USA S&P 500

1,187 IDX - Jakarta

3,042 1,175

2,971

S&P - USA

2,900

1,103

2,700

1,100

1,025

2,323 2,300 987

950

2,100 J-09

A

Sep

O

N

D

F

Mar

A

2009

J 23 Juli

INTEREST RATES % 7.0 Deposit Rate Interbank Call Rate SBI

6.7

6.5

6.6 6.4 6.4

6.2

6.1

5.8 Jul 09

A

Sep

Oct

N

D

J-10

F

Mar

2009

A

J

INTERNATIONAL RESERVES AND TRADE BALANCE

US$ Mn

23 Jul

US$ Bn

Trade Balance*

3,500

88 3,048

Net FX Reserves

84

78.6

3,000

80 76

2,105

2,468

1,802 1,446

1,500 1,000

M

2010

2,000

Korea Electric Power Corporation (KEPCO) will acquire a 20% stake in local coal producer Bayan

M 2010

6.8

The facility will be used to develop Kangean’s Terang, Sirasun and Batur (TSB) gas fields located offshore East Java. As part of the deal, BW Offshore will install the FPSO and supporting equipment, and operate the facility under a 10-year contract with an option for a four-year extension. The FPSO will have a capacity of up to 340 million cubic feet of gas per day. The TSB gas fields are slated to start commercial production by 2012 at a rate of 300 million cubic feet per day.

The gas from the FPSO will be transported by subsea pipelines to a receiving facility in East Java for distribution to industrial users. Kangean Energy Indonesia is 50% owned by Energi Mega Persada, with the remaining shares split evenly between Japan’s Mitsubishi Corporation and Japan Petroleum Exploration.

J-10

2,500

European aircraft maker Airbus has secured an order for six longrange Airbus A330200s from Indonesian flag carrier Garuda Indonesia worth US$1.1

10,500

10,432

10,600

2,500

Norwegian-based BW Offshore was awarded a US$875 million contract by Kangean Energy Indonesia for a floating production, storage and offloading (FPSO) facility.

Company president director Sarwoto Atmosutarno said the firm would use the loans to fund expansion of its telecom network.

He indicated that its mobile broadband and WIMAX services would be a major area of focus, as Telkomsel looks to encourage growth in high value customers amid a maturing mobile market and falling average revenue per user (ARPU) base. The penetration rate for the mobile market in Indonesia is around 80%, and could reach 100% over the next two years. In comparison, the penetration rate for the broadband market is less than 2% and is forecast to rise to around 5% by 2014. Telkomsel is 65% owned by state telecommunications firm Telkom, with the remaining 35% controlled by Singapore Telecommunications Limited.

15,000

16,450

57.9

68 64

64.5

1,326

72

60 56

57.9

52 48

500

44 40

0 M 09

J

Jul

A

S

O

N

D

J-10

2009

*Starting Jan08 Imports using General Trade System

F

Mar

Apr 2010

May

ment arm of the World Bank.

Leading pharmaceutical Leading cellular firm Kalbe Farma has services provider sold a 51% stake in its Telkomsel has secured packaging unit Kageo a US$800 loan facility Igar Jaya to Hong Kongfrom a bank syndicate based packaging firm led by China’s Citic Kingsford Holdings.

Bank.

EXCHANGE RATE 2009 - 2010 15,800

The facility will be designed to process up to four million wet metric tons (wmt) of bauxite ore per year, with a production capacity of one million tons of alumina per year. Antam president director Alwin Syah Loebis expects construction of the facility to start next year, with commercial operations slated to start in 2014. Hangzhou Jinjiang will control a 51% stake in the plant.

Antam will hold the remaining 49%, with an option of becoming controlling stakeholder in the venture three years after the start of commercial operations. Alwin said the smelter-grade alumina facility was part of Antam’s strategy to add value to its bauxite reserves. He added that the venture would allow the firm to integrate its upstream and downstream bauxite operations and help meet growing domestic demand for aluminum.

The company has set an indicative price range of Rp300-400 per share following recent talks with potential investors. It potentially makes the deal Indonesia’s largest IPO in two years. Berau Coal said around 90% of the proceeds would be used for capital expenditures, with the remainder used to finance the acquisition of coal marketer Maple Holdings Ltd. Danatama Makmur and Recapital Securities are underwriting the IPO. The shares on offer will represent around 18% of Berau Coal’s capital. The shares will be listed on the Indonesian Stock Exchange on 19 August. Berau Coal projects first half revenues of US$475 million, up 26% from US$376 million in the same period last year. The company forecasts its average coal selling price this year at US$58 per ton, compared to US$56.7 per ton last year. Berau

Coal is controlled by local investment firm Recapital Advisors.

Local shipping firm Trada Maritime has secured a US$50 million loan from the International Finance Corporation (IFC) and the Bank of TokyoMitsubishi UFJ. The loan facility will be used to help finance the purchase of an Indonesian-flagged floating storage & offloading (FSO) vessel with a capacity to hold up to 700,000 barrels of oil. The vessel will cost an estimated US$72 million and be delivered by early next year. It will be deployed under a seven-year contract with China National Offshore Oil Corporation (CNOOC) at the latter’s North Java sea concession.

Trade Maritime is a market leader in the Indonesian FSO market with a 26% market share. It currently operates four FSOs on contract with firms like Pertamina and Medco Energi, as well as five oil tankers, 13 tugs and 12 barges. An estimated 70% of Trade Maritime’s revenue comes from FSO services, with 19% from liquid cargo and 11% from dry bulk shipping. The IFC is the invest-

The deal is worth around Rp113 billion. Kalbe corporate secretary Vidjongtius said proceeds from the sale would be used to help fund a new pharmaceutical plant later this year. Kageo Igar Jaya provides paper, printing and packaging products for the pharmaceutical, cosmetics and food industries. It operates production facilities in Bekasi, West Java and Tangerang, Banten. Kageo Igar Jaya posted Q1 revenues of Rp130 billion, up from Rp111 billion for the same period in 2009. It netted Rp6 billion in profits in Q1, from Rp2 billion in the year earlier period.

Mobile phone distributor Trikomsel Oke secured a US$10 million loan from Citi Indonesia.

Trikomsel corporate services director Juliana Samudro said the loan would be used to support the firm’s existing operations and finance its expansion plans.

Trikomsel currently operates 754 OkeShop retail outlets in 153 cities across the archipelago. It also maintains a network of nearly 12,000 independent dealers. Trikomsel posted Q1 revenues of Rp1.28 trillion, up 19% from the same period a year earlier. Kurnady Lie, Citi Indonesia’s global banking head and managing director, said the US$10 million loan facility to Trikomsel reflected the bank’s commitment to assist clients and support development of Indonesia’s telecommunications industry. Citi Indonesia was a member of a bank syndicate that provided Trikomsel with a loan totaling US$75 million last year.

Leading mining contractor United Tractors has acquired a 60% stake in Agung

Bara Prima in a US$16 million deal.

According to United Tractors corporate secretary Sarah Loebis, Agung Bara Prima holds a green field concession in Kapuas, Central Kalimantan with coal deposits estimated at 10 million tons.

The firm is looking to produce one million tons of coal per year from the mine. United Tractors, Indonesia’s leading heavy equipment distributor, has been expanding its mine contracting and coal production businesses as part of its strategy to diversify its revenue streams. The firm has allocated US$100 million to purchase several coal concessions this year to double production from current levels of around 3.5 million tons per year.

Last year, United Tractors’ mine contracting unit generated 53% of the firm’s revenue, followed by its heavy equipment unit at 37% and its coal mining unit at 10%.

Bank Rakyat Indonesia (BRI) has received the green light from the government for its acquisition of Bank Agroniaga after several delays.

BRI president director Sofyan Basir said the bank would allocate up to Rp200 billion for an 80% stake in the small-sized lender. He expects a deal to be finalized by next month, adding that the bank would use internal cash reserves to fund the acquisition. BRI will purchase the stake from the Perkebunan Nusantara pension fund. Perkebunan Nusantara is the state-owned crops estate operator. Bank Agroniaga, which focuses on the agribusiness sector, has assets estimated at Rp2.5 trillion. State-controlled BRI is Indonesia’s second largest lender and is focused mainly on micro-financing. BRI has allocated Rp2 trillion for acquisitions of smaller banks over the next several years. Its purchase of Bank Agroniaga would be the bank’s first acquisition in three years after buying a majority stake in Bank Jasa Arta in late 2007.

Business Highlights are contributed to The President Post

by CASTLEASIA/PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program.

They are reprinted here with permission. For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@castleasia.com subject CEO Forum

SECTION

The President Post

Education

Display until September 12, 2010 /// N0. 15 www.thepresidentpost.com

C

Prof. Dr. Fasli Jalal:

Hope Amidst Moral Social Degradation

By Diana Sasmita

T Prof. Dr. Fasli Jalal Vice Minister of Education

“Sometimes we linger too long on such things and tend to find fault with one another, forgetting in the process that at the end of this long tunnel, there is still some hope,” he said.

he Government is working hard to upgrade the competency level of an estimated 3.2 million teachers now educating 52 million students in formal learning institutions across Indonesia, according to Vice Minister of Education Prof Dr Fasli Jalal.

With a higher level of competency, he says, teachers will be able to educate and not just teach the students in well over 258,000 schools; and this shall include better methods of character building as well as moral education for the students.

Prof Fasli made the remarks when delivering a keynote address to hundreds of high school teachers and university lecturers who recently attended CampusAsia Education Forum— a panel discussion organized by CampusAsia magazine in collaboration with Paramadina University in Jakarta.

The theme of the discussion was “The Impact of Education and Religion toward Moral Erosion in Indonesia”.

The discussion kicked off with the magazine’s editor presenting hard facts—taken from official sources—demonstrating the gravity of Indonesia’s moral degradation from pornography to abortion, same-sex marriage, free sex, divorce, corruption, abandoning of religious teachings, and other such kinds of behavior which have undermined Indonesian society, especially the younger generation.

The audience was told that some 2.5 million Indonesian couples officially get married every year but 10 percent of them end up in divorce before celebrating even their first wedding anniversary.

Divorce is no longer considered shameful in Indonesian society today. Some people even feel proud of being able to divorce their spouses, assuming that they “still can sell well” for a new episode of marriage.

Meanwhile, from an estimated 2.1 million cases of abortion recorded annually, at least 700,000 involve under-18 years old girls, mostly students, according statistics from the Ministry of Health.

Divorce and abortion are just small examples of the gravity of moral erosion in Indonesia. In terms of corruption, Indonesia is ranked 111th on the list of 170 countries around the globe, but it is believed to be one of the most corrupt countries in Asia.

“

What is left to be done is “increasing moral and ethics education and make such values an integral part of a pluralistic society that upholds solidarity, one that has confidence in its own progress…”

Ironically, though, according to Wijayanto, Vice Rector of Paramadina University, among the most corrupt institutions in this country are the legal establishments, including the police and judiciary institutions.

Paramadina University is therefore championing an anticorruption campaign by making it obligatory for every single one of its students to take Anti-Corruption courses. Its rector, Dr. Anies R. Baswedan, says that “in this way Paramadina attempts to sever the supply of corruptors” in society.

Despite the somewhat discouraging landscape of Indonesian society’s morality, Prof Fasli Jalal believes that “there is still hope at the end of this long tunnel”.

Right after the CampusAsia editor presented data about the degradation of morality in Indonesia, the vice minister said, “After witnessing this, I think one may recall a book once written by noted poet Taufik Ismail. The

title of the book was “Aku Malu Jadi Orang Indonesia” (I feel embarrassed to be an Indonesian).”

Nevertheless, Prof Fasli went on to say that if Indonesia focused only on negative memories, it would not be able to move forward.

“Sometimes we linger too long on such things and tend to find fault with one another, forgetting in the process that at the end of this long tunnel, there is still some hope,” he said.

Part of such hope, in Fasli Jalal’s version, is the fact that in terms of access to education, a lot of progress has been made as indicated by rising numbers of participating learners in elementary education activities.

What is left to be done is “increasing moral and ethics education and make such values an integral part of a pluralistic society that upholds solidarity, one that has confidence in its own progress…”

Quality Sacrificed The vice minister explained that during the oil boom period of 1980s the government opened many schools, thinking that quantity, instead of quality, was the goal. The government opened more than 30,000 elementary schools for which at least 180,000 new teachers were recruited.

The primary aim was to increase access to education. As a result, those who were recruited were high school graduates who underwent only short periods of training just to satisfy a dire and gaping need.

Such was the strategy, but while the government succeeded in meeting the quantity target, quality was sacrificed, the vice minister explained.

Based on this experience, the government is now altering its strategy by diversifying the areas on which educational institutions shall focus. This is called concentration of priority.

For instance, the government plans to increase to 70 percent the percentage ratio of vocational schools as against that of general high schools, thereby providing greater opportunity for vocational schools’ graduates to enter the job market with a higher level of confidence and skills.

Among the holistic efforts the vice minister singled out was the need to prepare the younger generation, especially students, to become “responsible parents” in the future.

Education must lead to empowerment of learners even in the family circle, he theorized, as “some four million babies are born to Indonesian families, including the families of 2.5 million new couples every year.”

“We must give better attention to would-be parents. We need to groom them and develop their intellectual capacity as well as spiritual potential.

“Even when a baby is still in its mother’s womb, it is necessary to recite prayers or read holy verses onto it because this would help stimulate the baby’s neuron cells that are responsible for character building and spiritual development,” said the vice minister, who also holds a degree in medicine.

As of this year Indonesia has at least 29 million children under six years old, not even half of them have participated in formal educational activities.

“The fact is that this is their golden age during which time the right education, including char-

The Government is working hard to upgrade the competency level of an estimated 3.2 million teachers now educating 52 million students in formal learning institutions across Indonesia, according to Vice Minister of Education Prof Dr Fasli Jalal.

acter building, must be implanted from home to school and society at large,” Fasli said.

“We need to create the right education modules for this segment and synergize them with parenting education modules, etc.”

But he also realizes that on elementary school level, reading ability is still very low. According to the Program for International Students Assessment (PISA), Indonesia is among the world’s poorest in terms of children’s reading habit.

To overcome this, the government is working to train up to

1.5 million teachers by upgrading their competence. Every year the government trains some 300,000 elementary school teachers by sending them to university to obtain an S1 diploma before promoting them as certified teachers.

Ironically, the vice minister acknowledged, those who have received an S1 diploma, for which they get a 100 percent salary increase, have not performed any better than their records before getting the diploma.

The government is therefore planning to send them back to training classes for some

90 hours, especially to prepare them as good morality and ethics teachers who will provide the right character and religious education to the students.

His office is planning to initiate discussion on this with the Ministry of Religious Affairs which is responsible for religious education in religious boarding schools as well as in public schools.

Prof. Fasli said that the government had groomed some 140 schools whose best practices regarding character building and moral education will be made a source of inspiration for other schools to follow.

The vice minister explained that during the oil boom period of 1980s the government opened many schools, thinking that quantity, instead of quality, was the goal.

The President Post

C2 August 12, 2010

www.thepresidentpost.com

Education Government Rushes against Time to Professionalize Millions of Teachers

By Alci Tamesa

Photo: www.smkn8sby.sch.id

So far the government has only been able to train 21 percent of teachers while the rest have yet to be trained before the target date of 2015.

T

he government of President Susilo Bambang Yudhoyono is rushing against time to professionalize millions of teachers, hoping that by 2015 all teachers across this vast archipelago will have obtained the certification of being qualified teachers.

Today, teacher certification is of utmost importance and is altogether one of the priority items of the agenda of the Ministry of National Education because in the past most teachers were actually not qualified to teach.

The SBY government seems to have realized that Indonesia needs to have a success story in education before it can become a dignified nation as part of the international community, and the key to having successful education is having qualified teachers.

During the New Order era under the late Soeharto, the government’s focus was on quantity instead of quality. The then government rushed to establish tens of thousands of schools but it failed to groom teachers in proportional numbers.

For instance, for every elementary school, the government needed at least six teachers. So when it established 30,000 schools in a year, it had to provide 180,000 teachers—a figure too high for state-owned teachers training colleges to provide.

This situation got worse during the reform era when the government converted teachers training colleges into universities. At a time when there was a dire need for teachers, such colleges disappeared.

Consequently, the government must now send at least 300,000 teachers back to university annually to obtain S-1 (undergraduate) degrees which will make them eligible to teach at elementary schools.

“

quality of graduates from elementary to high school and university levels as a result of having professional teachers running the show.

Teacher certification is conducted in two ways—one is to use portfolio assessment and another is through direct issuance of professionalism certificates.

Prof. Dr. Muhammad Nuh Minister of National Education

fication is conducted in two ways—one is to use portfolio assessment meaning that the track records of every teacher is assessed against standard requirements set by the government. This is done through valuation of certificates and teaching experience as well as teaching material or books the teacher has published.

If the assessors declare that the value of the certificates is sufficient, the teacher passes the assessment process and obtains the certification. If the requirements are not sufficiently met, the teacher will have to undergo what is called Pendidikan dan Latihan Pendidikan Guru—abbreviated as PLPG (education and training for teacher education).

This special intensive training program lasts 92 hours during which time participants are retrained in the field of pedagogy, teaching techniques, educational leadership, psycho-sociological skills, and related aspects.

The SBY government seems to have realized that Indonesia needs to have a success story in education before it can become a dignified nation as part of the international community, and the key to having successful education is having qualified teachers.

In the past, elementary teachers were supplied by high school-level teacher training schools called Sekolah Pendidikan Guru (SPG).

In remote parts of the country such teachers even taught at junior high schools.

Officially, the minimum requirement for teachers to teach junior high schools then was that they must be graduates of Pendidikan Guru Sekolah Lanjutan Pertama (PGSLP).

But, again, due to a serious lack of high school teachers, PGSLP graduates were also assigned to teach senior high schools in many parts of eastern Indonesia.

So shortage of qualified teachers does not happen only at elementary education level; it happens also in junior and senior high school levels.

Over the past two decades however, the situation has improved a lot. To be the headmaster of an elementary or high school, for instance, one has to be an S1 graduate. At the university level, undergraduates can no longer be appointed lecturers; one has to at least obtain an S2 diploma to be able to teach there.

According to Minister of National Education Prof Dr Muhammad Nuh, teacher certi-

So far the government has only been able to train 21 percent of teachers while the rest have yet to be trained before the target date of 2015.

This is one of the reasons why the Ministry of National Education is being reformed during which process teachers training is no longer handled only by one directorate general; the task has now been shared with other such establishments within the ministry, according to Minister Nuh. Another method for certifying teachers is through direct issuance of professionalism certificates. This is for teachers with S2 (master’s) and S3 (PhD) background who has the career status of IVb. For teachers, getting the certification is a source of excitement because that would automatically raise their salary.

One thing that must be ascertained, however, is whether teacher certification automatically leads to better quality of teaching. It could well be that teachers are more excited about getting higher salary than about receiving the predicate of professional teachers.

In other words, the government needs to make sure that Indonesia will in the future have better

In a related development, according to the rector of Pramadina University, DR. Anies R. Baswedan, at least 66 percent of state-owned elementary schools in Indonesia do not have enough teachers. This is the reason why the quality of elementary graduates entering junior high schools is still poor.

Remoteness of many schools is to blame for the situation. In many cases, teachers have to travel a great distance to reach their schools.

Due to this, university graduates are reluctant to teach.

Nevertheless, Baswedan wonders if Indonesians do not wish to teach in such places, who else will? He made the remark in a speech during a graduation ceremony at Bogor Agriculture University (IPB) as a keynote speaker.

Baswedan believes that schools in such islands as Kalimantan, Sulawesi, Maluku, Sumatra, Papua and East Nusa Tenggara are in dire need of dedicated teachers so university graduates from Java must go there.

His own university has actually set the good example of sending out at least 50 graduates to such remote parts of Indonesia as Bengkalis, Riau, Tulang Bawang (Lampung), Passer (East Kalimantan), Majane (West Sulawesi) and Halmahera (North Maluku).

So, even after the certification process is completed in 2015, one challenge that must be overcome is how to encourage university graduates to teach in poor and remote parts of Indonesia.

This is a challenge that cannot be addressed easily unless people’s living standards are raised along with a reinvigoration of regency-level economy.

Today, education financing from elementary to high school levels is the responsibility of local or regional governments, even though they receive regular financial support from the central government.

Education observers say that local (provincial and regency-level) governments are competing against one another in the context of regional autonomy.

Some have encouraged schools to open international classes while others are beating out their brains in an effort to provide free education for under nine year old children.

In big cities like Jakarta, parents talk about sending their children abroad. In remote parts of the country, parents talk about inability to pay school fees. In big cities children go to school in expensive cars.

In remote parts of the country, children walk a long distance to reach their school. But they are not alone—their teachers usually arrive in classrooms sweating after walking a long distance.

Such disparity needs to be bridged before educational equity becomes a source of pride for the nation. So, after the certification program is completed, perhaps one more challenge is how to raise the income levels of parents especially those in poor parts of Indonesia. A multidisciplinary approach is needed for this purpose.

By 2015 all teachers across this vast archipelago will have obtained the certification of being qualified teachers.

The President Post

www.thepresidentpost.com

August 12, 2010 C3

Education

As Jakarta Wins Science Olympiad, Orientation of Education Merits Review

By Alci Tamesa

Despite the shinning success of the Science Olympiad winners, many holistic educators say that such an activity cannot be taken as a barometer to measure the success of education—simply because science is only a small part of education and it deals only with the development and the utilization of the left brain.

W

ith 20 gold, 29 silver, and 41 bronze medals, the special Territory of Jakarta emerged as the overall winner of Indonesia’s National Science Olympiad (NSO) 2010 which ended in Medan, North Sumatra, on August 7. This was the 9th such science competition ever to have been held in Indonesia as the incubator for producing world-class scientists.

The runner-up was Central Java with 14 gold, 39 silver, and 32 bronze modals, while the province of Banten occupied third place with nine gold, 15 silver and seven bronze medals. Host province North Sumatra was only able to occupy 9th place with one gold, four silver, and 10 bronze medals.

During the 8th NSO in Jakarta last year the host province also emerged as the overall winner with 23 gold, 37 silver, and 26 bronze medals, followed by Jogjakarta, Banten, and East Java.

Prof Suyanto, the director general for primary and secondary education at the Ministry of National Education, said in closing the Medan Olympiad that the winners should not be easily satisfied with their achievements and the losers should work harder in order to win the contest in the future.

A total of 1,565 students from across the Indonesian archipelago

participated in the competition, comprising 198 students from elementary, 396 from junior high, and 872 from senior high schools.

The contest also featured 99 disabled students.

They competed in nine fields of study—mathematics, chemistry, physics, biology, informatics and computer science, astronomy, geometry, and economics.

The opening ceremony was led

by Vice Minister of Education Prof Dr Fasli Jalal and was hosted by Governor of North Sumatra Syamsul Arifin.

Prof Fasli says that gold medalists will receive government scholarships to obtain post-graduate degrees, silver medalists will pursue graduate studies on government scholarships while bronze medalists will be given scholarships to pursue undergraduate studies.

In this year’s NSO, the province of East Java emerged in 5th place with six gold, 15 silver, and 35 bronze medals, while Bali received four gold, three silver, and seven bronze medals.

South Sulawesi’s team went home with one gold, four silver and three bronze medals, while Jambi got one gold, two silver, and five bronze medals.

Behind them was South Sumatra with one gold, three bronze, Aceh one gold, one bronze, Lampung five silver and five bronze, West Sumatra two silver and nine bronze, and West Kalimantan with two silver and eight bronze.

Meanwhile, West Nusa Tenggara (NTB) emerged with two silver and four bronze medals, East Nusa Tenggara (NTT) one silver and two bronze, East Kalimantan one silver and two bronze, Riau Islands one silver, Gorontalo four bronze, Central Kalimantan with bronze, and Central Sulawesi two bronze medals.

Bringing up the rear were Bangka Belitung, North Sulawesi, Southeast Sulawesi, North Maluku, and Papua, each with one bronze medal. The provinces that failed to get even a single bronze medal were Bengkulu, South Kalimantan, West Sulawesi, Maluku and West Papua.

Science Olympiad versus Holistic Education Despite the shinning success of the Science Olympiad winners, many holistic educators say that such an activity cannot be taken as a barometer to measure the success of education—simply because science is only a small part of education and it deals only with the development and the utilization of the left brain.

In other words, using mastery of exact science as a yardstick for determining the success of education is misleading, because not every learner has exact science talent and science is not all that constitutes human life.

As a matter of fact, human beings do not only need the left side of the brain; they need the right and middle brains as well to support a balanced life.

UPH FESTIVAL 17

“BE TRANSFORMED” Universitas Pelita Harapan (UPH) celebrates the biggest annual event for welcoming the new students in UPH Festival 17.

The event which takes place from August 12th until 14th 2010 will carry “Be Transformed” as the underlying theme for whole festival series, purposely to encourage all new students to experience a positive transformation during their holistic educational process at UPH. Since 2006 UPH began to change the concept of orientation for the new students with a festival format, to show the joy of welcoming new students. Various events will be held, such as seminars to broaden the horizon of intellectual, as well as the inspirational and entertaining programs.

The whole event series will begin with the Gala Concert on 11 August 2010. “The Land of Praises” is the theme of this concert, which present the praise songs, with Indonesian traditional dances and music.

Start from Thursday to Saturday, on August 12-14, 2010, the festival will be open to public. High school students will also be invited to enjoy the works of UPH students and get a complete academic information from all departments at Academic Gallery, located at the VIP Grand Stand - Lippo Village’s International Formula Circuit.

The public can watch various music entertainment and bazaar, as well as The National Champion Basketball

League (NCBL) Tipp Off Basketball Tournament which will present UPH basketball team, Satria Muda national team, Perbanas and Santa Barbara Breakers, the guest team from United States.

UPH Festival will also invite national and international public figures to deliver speeches in Distiguished Guest Speaker Seminar. They are Prof. Dr. Ir. Muhammad Nuh from Ministry of National Education, Barnabas Suebu, Theo Sambuaga, Prof. Lee Hardy and Andy F. Noya.

According to theme of UPH Festival 17, the guest speakers will carry a transformation topic. Prof.

Dr. Ir. Muhammad Nuh will present “The Transformation of National Education System to Improve The Indonesian Education Quality and Competitiveness, while as a Papua Governor, Barnabas Suebu will share information about the transformation of government governance through

education sector. Theo Sambuaga will cover a transformation in political communication and Prof. Lee Hardy from Calvin College will talk about “Transforming Work Ethics: A Promise and A Challenge”.

Kick Andy Off Air will also take part in our UPH Festival 17 with a topic of: The Beginning of Individual, Society and Nation’s Transformation. In this program, Eko Ramaditya Adikara, a visually impaired man will witness his testimony in becoming a digital sound engineer. Other invited guest is Yoris Sebastian, a young entrepreneur in creative industry who becomes the youngest General Manager in Asia and second in the world.

DIGITAL VIDEO MAPPING The whole series of UPH Festival 17 will be closed with a very fresh and spectacular show of Digital Video Mapping (DVM); a show that denotes UPH’s involvement in pioneering the newest technology development in Indonesia.

DVM is a new concept in animation technology using buildings as its screen. This technology was firstly introduced to public at Fatahillah Museum. This time, the DVM which will be presented in UPH Festival will use 3D effects that has not shown before. The show’s content will visualize UPH’s transformation as a university. DVM will be projected on Building D which is located near university’s soccer field. The visitors will be given an access to watch it closely. As the climax of the closing ceremony, Mike Mohede, Pasto, Dira, Caffein and Febrian will also perform after DVM show. (PR)

Indonesia, he believes, needs to develop holistic education models that can cater to the rising need of learners in every field of study, including those myriad non-exact domains, so that graduates will become solid individuals who are good cognitively and are also laudable in terms of character, morality, and integrity.

The educators say that educational endeavors must be holistic in the sense that the same level of appreciation for achievements in exact science must be given to those who excel in other fields of study. This is not happening in Indonesia these days.

For instance, those who excel in science contests are hailed so highly by the government as evi-

dent in its provision of up to postgraduate scholarships, but those who do well in arts and music, social, religious, character building, and charity works such as those who help disabled children are somewhat ignored.

Ministers are quick to fetch or receive science Olympiad winners coming home from international contests, but winners in non-science fields have never received similar appreciation.

This is clear evidence that the approach toward development of education is still one-sided in nature—a practice that must now be ended if Indonesia is to see its younger generation become wellrounded intellectuals.

The weakness of “left-braincentered education” can easily be seen in Indonesia today, says a holistic educator associated with a well-known private university in Tangerang.

“If you go to Indonesian prisons today, you will be surprised that many of the inmates are scholars. Some have S1, some S2 and many have S3 titles,” says educator Malik Ibrahim.

(S1 is the Indonesian abbreviation for undergraduate title, S2 is for graduate and S3 is for postgraduate or PhD title).

“Why is it that people go to school only to end up in jail?” he asks, adding, “Maybe it is because schools and universities only develop the left side but ignore the right and middle sides of learners’ brains. So people become clever

cognitively but dull emotionally.”

“This is why many people in Indonesia, even public figures, do not have integrity. They can easily be bribed and get involved in corruption because to them money is everything.

“This is why former ministers, governors, mayors, regents, police officers, politicians, even judges and public prosecutors, have been sent to jail,” Ibrahim remarks.

Another holistic educator associated with a well known private educational institution in Jakarta says that it’s time Indonesia reviewed its orientation of education to make sure that schools do not just deal with teaching but also educate while they teach.

Ben Sambadia, the educator, says that not only must education be approached holistically, it must be realized that real education starts from home and expands to worship places and then to schools and society. So if anything goes wrong with the output of education, then parents, religious leaders and even public figures must be held responsible.

He says that students spend only several hours at school but most of the time interacting with their families and in their immediate environments. So if the values being practiced in society are not compatible with those planted at school, students will become confused and define their own values and ways of life which may run counter to educational principles.

Samabadia theorizes that there are four pillars of education that must be recognized in every society—the family, the worship place, school, and the mass media. These institutions must promote common values because if they implement conflicting philosophies, learners will continue to be victimized.

For instance, if schools teach students not to smoke while the mass media continue to run cigarette advertisements, learners will think that the right thing to do is to apply double-standards, meaning that while at school they refrain from smoking, but right after school hours they become smokers.

When they grow old and enter politics, they will apply even more sophisticated types of hypocrisy and will never be able to walk the talk. This is why integrity is almost non-existent in Indonesian society.

Sambadia says that Science Olympiads are not wrong because as a matter of fact they tell us of the myriad exact science talents we have in Indonesia. But that alone is not enough.

Indonesia, he believes, needs to develop holistic education models that can cater to the rising need of learners in every field of study, including those myriad non-exact domains, so that graduates will become solid individuals who are good cognitively and are also laudable in terms of character, morality, and integrity.

The President Post

C4 August 12, 2010

www.thepresidentpost.com

Education President University Moves on to Produce Qualified Graduates The university is being geared to become a world-class institution and for that purpose the rector is working to upgrade its curriculum to have an internationally accepted standard.

By Jeannifer Filly Sumayku

P

resident University is lucky to have as its rector a public figure called Prof.

DR. Ermaya Suradinata who used to be the governor of National Resilience Institute Lemhanas. Given this background, Ermaya is well positioned to share with the university his vast experience and wisdom sitting in the chair of the university’s president.

His career in education began many years ago when he became the head of a training center on law and social-political affairs under the Home Affairs Ministry of the Republic of Indonesia.

After completing this assignment, Ermaya worked as professor in government management and chairman of the Faculty Senate at The Institute of Public Administration (IPDN).

There are several crucial positions that Ermaya achieved in Home Affairs Ministry of the Republic of Indonesia such as the Director General on social-political affairs, the Director General on National Unity and Public Protection.

All these experiences will enrich Ermaya’s maneuvers in producing some of Indonesia’s best minds through President University.

The university is being geared to become a world-class institution and for that purpose the rector is working to upgrade its curriculum to have an internationally accepted standard.

All courses are conducted in English to bolster its 2,000 stu-

dents’ competitiveness in global job market. In fact, 30% of its students are expatriates. Teachers are recruited from top universities abroad to elevate the quality of education.

Responding to the need of industry for qualified and ready to work human resources, President University provides its graduates with working experience from internship programs.

“President University study programs were developed to help the government reduce unemployment,” Prof. Ermaya says.

Students have two semesters of internship learning directly from experienced professionals at internationally reputed companies.

While doing this they build connection to facilitate future career.

They may develop professional skills including interpersonal skill, teamwork, and time management skill obtained at the actual professional world.

Located in Jababeka industrial estate, President University is conveniently surrounded by more than 1,200 multinational companies such as Unilever, Samsung, Mulia, Mattel, ICI Paints, and many more. Every one of its students takes the internship program that matches their specific interest and need.

President of President University, Syonanto Wijaya says his university wants “to produce graduates who not only are ready for employment, but also possess leadership and entrepreneurship skills. The problem with Indonesia is that we lack leaders who have good mastery of knowledge and have good character.”

President University has been promoting entrepreneurship as one of its compulsory subjects. It provides entrepreneurial motivation, hands-on knowledge, skills, and other traits.

The university has a student

housing complex for first-year students. It is also an optional boarding house for senior students. The university also has sufficient sport and art facilities.

A good number of scholarships and financial aid programs are offered to students from poor families. Partnership with companies and banks provides most of the funding while in return they receive qualified graduates to work for them in the future.

Granting of scholarship depends on several factors including high school records, result from the entrance exams, and the student’s family income background.

President University develops six study programs with 12 majors as explained below: Faculty of Economy • Management • Accounting

Faculty of Law • Business Law • International Law Faculty of Business and International Relations • International Relations • Business Administration Faculty of Communication and Multimedia • Public Relations • Visual Communication Design Faculty of Computing • Information Technology • Information System Faculty of Engineering • Industrial Engineering • Electrical Engineering

More info please visit: www.president.ac.id

Responding to the need of industry for qualified and ready to work human resources, President University provides its graduates with working experience from internship programs.

The President Post

www.thepresidentpost.com

August 12, 2010 C5

Pictorial Events Indonesia-Turkey Business Forum During President Susilo Bambang Yudhoyono’s visit to Turkey last June, a business meeting took place well attended by businessmen from 800 Turkish companies and 22 Indonesian businessmen. There are seven signatories of the MOU between Indonesian company with Turkish companies.

The company that agreed to cooperate among others are Cengiz Holding Co.Un Sanayi ve Ticaret Ulusoy U.S., Ulasgida Co. Ajans Press, and TAV Holding Havalimanlari U.S.

Coreographer Visit to the Movieland Jamie Gao (Coreographer of Crouching Tiger, Hidden Dragon & many other box office movies) visited the Movieland at Jababeka. His visit was to explore the posibilities of producing major movies at the Movieland located at Jababeka.

PBNU - Jababeka Cooperation

From left to right: Ardian Elkana (Castle Production), Jamie Gao (Coreographer of Crouching Tiger, Hidden Dragon & many other box office movies), SD Darmono (Jababeka), Raymond Wong (Castle Production), Jonathan Liu (IMS-Ardi Darma Production).

The Prospects of Indonesia-Japan Industry Network

K.H. Said Aqil Siradj, Chairman of PBNU and Mr. S.D. Darmono, President Director of Jababeka, Signed an MOU on Saturday, August 8, 2010 at the Sahid Jaya Hotel. The MOU signify the area of cooperation in education, social, and economy.

Photo: The President Post/Nandi Nanti

The Ambassador of Japan Mr. Shiojiri and President Director of PT. Jababeka, Tbk., Mr. Darmono agreed to further accelerate the pace of bilateral relationship between Indonesia and Japan.

This was reached during their recent meeting to encourage cooperation between business people from both countries through what they called “winwin plus alpha” relations.

Photo: The President Post/Nandi Nanti

ASEAN Dialogue Forum The dialogue was held at the Financial Club, Jakarta. Mr. Subash Bose Pilai, the Director of Market Integration Directorate from ASEAN Secretariat, delivered his remark about development of ASEAN Economic Community.

Also present in the dialogue were entrepreneurs, professionals, functionaries, and former ambassadors. Among them were Abdul Latief, Subronto Laras, Makarim Wibisono, Dohari Oratmangun, Atmono Suryo, John Pang, Kemal Surianegara, Guntur Prayitna, Rahardjo Jamtomo, and Bambang Guritno.

Photo: The President Post/Nandi Nanti

“Indonesia and the Role of Emerging Democracies for International Peace & Security” Photo: The President Post/Nandi Nanti

Indonesia Australia Business Council (IABC) This routine dinner event was hosted by IABC for businessmen and professionals from Indonesia and Australia. The event was meant to maintain relationship between the two countries especially in business and industry fields.

The dinner was attended by Paul Robilliard (Charge d’Affaires – Australian Embassy), Mr. SD Darmono (President IABC – Jababeka), Mr. Noke Kiroyan (Advisor IABC – Kiroyan Partners), Mr. Simon Dixon (Astra International), Ms. Jenny Djunaedi (Jakarta Land), Ms. Veronica Linardi, Mr. Haslam Preeston (Jakarta Land), Mr. Paul Preston (President Executive Club).

The event was organized by ICWA - Modernisator which was held at Financial Club, Jakarta, 2 August 2010 with keynote speaker: Samantha Power (Special Assistant to the US President & Senior Director for Multilateral Affairs, US National Security Council).

The event was attended by Ambassador of United States for Indonesia, Cameron Hume and other diplomats from United States Embassy.

The President Post

C6 August 12, 2010

www.thepresidentpost.com

Travel

BINTAN: A PARADISE IN ITS OWN RIGHT

Most tourism activities are concentrated on the north coast around Lagoi, while the east coast is still unspoiled and worth a visit.

Text and photos by Taufik Darusman

It is often described as a unique paradise, where life is simple and its multicultural population of some 200.000 people – mostly Javanese, Buginese and Chinese – are friendly and live in harmony.

A

visit to Bintan offers you an insight into its illustrious past as well as its promising future in the realm of tourism.

Bintan, an island in the Riau Islands province, has a beautiful coastline that runs about 100 kilometers, most of which comprises pristine white sandy beaches.

Located a 30-minute ferry ride from Batam or 45 minutes away from Singapore by a high-speed catamaran, Bintan is the largest of no less than 3,200 islands in the Riau archipelago.

It is often described as a unique paradise, where life is simple and its multicultural population of some 200.000 people – mostly

Javanese, Buginese and Chinese – are friendly and live in harmony.

Bintan was initially part of the Riau Province, but to accommodate post-reform separatist sentiments the government and the House of Representatives agreed to spin off Riau Islands as a separate province in July 2004 with Tanjung Pinang as its capital.

In visiting Bintan, most holidaymakers and pleasure-seekers head straight to Bintan Resort where life seldom moves beyond sitting by swimming pools sipping gin tonics at luxury hotels, snorkeling, fishing, canoeing and wind surfing. Its all-year round sunny weather allows for upscale

activities such as golfing, jet-skiing, sailing, diving and island hopping.

Most tourism activities are concentrated on the north coast around Lagoi, while the east coast is still unspoiled and worth a visit.

To those with a passion for facts and figures: there are seven international hotels, four resorts and three international golf courses with 36 holes in Bintan Resort, covering 23,000 hectares, designed by Gary Player, Jack Nicklaus and Greg Norman.

Comparisons to Bali’s tourist enclave Nusa Dua is inevitable but this is hardly an-apple-toapple exercise. While the resort island is by all measures unique and distinctive to the point of being in a class of its own, Bintan has sufficient drawing power to attract large numbers of tourists from Europe, Japan and South Korea (and, of course, Singapore) and foreign companies to hold their annual meetings.

Local tourist guidebooks trace Bintan back to the 13th century, when the island was a part of the magnificent Sriwijaya Empire of what is now South Sumatra.

As historical data show, Sri Tri Buana, a member of the royal family of Palembang, visited Riau Islands in 1290 and joined

forces with the island’s ruler to take over Bintan and later became its king.

Since then Bintan has become a perennial battleground involving the Malacca and Johor sultanates, the Portuguese, the Buginese, the Acehnese and the Dutch because of its strategic location as a port and trade center in the region.

But when the British in 1819 discovered and developed Singapore to became a regional trading center, Bintan’s stature diminished enormously. The island experienced a permanent reversal of political and trading fortune and today remains overshadowed by neighboring Batam and Singapore.

“In the 1980s, the leaders of Indonesia, Malaysia and Singapore initiated the Sijori (Singapore, Johor and Indonesia) Growth Triangle and signed agreements to invest in Bintan and Batam, the latter once a deserted island that was turned into a special bonded zone,” says, Abdul Waahab, the Singaporean general manager of

Nirwana Gardens.

Singapore also signed a special agreement with Indonesia to lease its northern coast and develop it into a resort called Bintan Resort. The powerful Salim Group was then brought in to join forces with Singapore’s equally powerful business group, Sembawang, to develop the area.

It now features excellent infrastructure and is home to such luxury and exclusive entities such as Nirwana Gardens, Club Mediteranee, Bintan Lagoon and Banyan Tree.

Says Wahab: “About 5000 people are employed in this resort.”

At one time Bintan saw huge investments coming their way, including industrial parks that many Japanese and American companies use as their manufacturing base.

For some reasons, not the least the global economic crisis, that lustre has slightly worn off. But that has not prevented Bintan to remain as a popular tourist destination with its own brand of allure.

Places of Interest in Bintan Tanjung Pinang The main and busy port town, where trader and passenger ships link all parts of Indonesia with Singapore. In many ways, the city reminds us of Bogor in West Java some 20 years ago, as it transforms itself from a quaint and rustic place into a city teeming with ATMs and internet kiosks.

where the sand is white and the water clean, a great place for relaxation. Visit also a nearby fishing village and a small traditional boat building facility.

Tanjung Uban The second largest town after Tanjung Pinang, on the north western coast of Bintan Island.

Along the seaside is a charming boardwalk called “Pelantar” with houses, accommodations and restaurants built above the sea, where you can buy art works and handicrafts.

Bintan Elephant Park Seven Sumatran elephants beckon you to an interactive adventure by offering you a ride into the forest.

Senggarang Island Visit the over 300 years old banyan tree temple.

Another temple is also on hand, Xuan Tian Shang-di, named after a Chinese ruler.

Penyengat Island 15 Minutes away away from Tanjung Pinang by motor-powered sampan boat.

Spend some time at a 200-yearold well-maintained grand mosque of the Sultan of Riau, an old palace and royal tombs, and a typical Riau traditional house.

Pantai Trikora A beach on the east coast

What to do in Bintan Mountain Biking The quiet, hilly and well-maintained roads of Bintan are ideal for biking.

Gunung Bintan Adventure Trek The 340-meter high mountain of Gunung Bintan offers visitors breathtaking panoramic views from the summit.

Bintan’s rainforest features giant trees and rare animals.

Mangrove Discovery Tour The beauty and mystique of Bintan’s flora and fauna.

Getting There You can reach Bintan from Batam Island, Singapore or Malaysia (Johor Baru) by scheduled ferries. Bintan has a small airport in Kijang serving domestic flights to and from Jakarta.

Reprinted by permission from Garuda Indonsia Inflight magazine

The President Post

www.thepresidentpost.com

August 12, 2010 C7

Living

New Tech Moves Beyond the Mouse, Keyboard

G

Photo: www.geeky-gadgets.com

Microsoft’s Kinect, lets players control games by moving their bodies.

Photo: www.amazonaws.com

New methods of input sometimes come with new problems.

Using arm and hand motions to control computers, for instance, can become tiring, said Beth Mynatt, director of the GVU center at the Georgia Institute of Technology. And if such motions are taken to TV sets, as Toshiba has demonstrated, then there may be some unintended and hilarious consequences, she said.

“Are they trying to change the channel or are they making rude gestures to the umpire?” a computer might think, she said. “[The computer is] going to get it wrong and nobody’s going to want to do it. They’re going to be much happier fumbling around with that remote.”

oodbye computer mouse, keyboard and monitor.

Say hello to a new, simpler era of human-computer interaction -- this time, with no clunky hardware standing between you and digital information.

In this new world, there are options aplenty.

Instead of sliding a mouse across your desk, you could just point at whatever you’d like to select. Instead of pecking away at a keyboard, you could just say what you’re thinking. And instead of glaring at a big screen all day, why not just project that information on the surface of your contact lenses?

None of this is science fiction.

These ideas are here today, some of them in research labs and others already on store shelves.

And, thanks to a remote-control-free video gaming system called Kinect, these futuristic concepts for computer-human communication are about to get a lot more popular, technology researchers said in interviews this week.

Microsoft’s Kinect, which hits stores November 4, lets players control games by moving their bodies. To make a digital soccer player kick, you just swing your leg.

It’s an effort to make gaming more “natural.” And that concept

-- that we don’t need intermediaries to help us talk to technology -- is likely to bleed into every aspect of electronics and computing in coming years.

“It’s all fantastic, because it’s a really useful educational opportunity for the world,” said John Underkoffler, creator of a real gesture-based computing system that was featured in the 2002 movie “Minority Report.”

“It’s only been a few years that people have started to realize, ‘Wait a minute! We’re not stuck with the mouse and Windowsdriven interface for the rest of time.’ “ A whole field of technological research has developed around the idea of “natural user interfaces,” which try to let people communicate with machines in the same ways they would interact with other people and with the real world.

Kinect, which was demonstrated at a video gaming conference this week in Los Angeles, California, is a prime example of this, because people control the system with body gestures and by

talking instead of clicking buttons or messing with joysticks.

Researchers are trying to expand this idea of “gesture-controlled” electronics into computing more generally.

Underkoffler, for example, developed a system called g-speak, which lets users shuffle through data sets and other information by waving their hands.

He says several large companies, including Boeing, already are using custom-built versions of the system, which range in price from $100,000 to millions of dollars.

Underkoffler expects consumer-level products to be widely available within five years.

These developments may seem to have plopped into reality out of sci-fi. But they’ve been a long time coming.

Touch-sensitive screens were some of the first natural interfaces.

They’ve been in research for decades, but they didn’t become cheap and popular until 2007, when Apple released the touch-

TIPS FOR

Traveling Solo Without the comfortable crutch of a friend, you’re more likely to know the joys of self-discovery and the pleasures found in the kindness of strangers.

You’ll be exploring yourself, as well as a new country and culture.

W

hen traveling alone, think of train rides as an opportunity to meet people.

First there was the woman who runs the leather school at the Church of Santa Croce (established by her family and Franciscan monks after World War II to give orphaned boys a trade).

Then there was the likeable congressman from Florida whom I met while dodging a horse carriage near a Donatello statue.

And while eating alone at one of my favorite restaurants, I chatted up a conductor from Switzerland with “Young Frankenstein” hair.

All night we talked about pianos -- a passion we both shared.

The maestro and I had a wonderful chemistry. He was the kind of person I knew I could be great friends with -- and someone I probably never would have met had we not been dining alone that night. The nature of my job means that I spend a lot of time in museums, restaurants and bars by myself. But that’s also the way I prefer to experience Europe.

When you’re with a companion, it’s easy to focus on that person and forget about meeting Europeans and other travelers.

Without the comfortable crutch of a friend, you’re more likely to know the joys of self-discovery and the pleasures found in the kindness of strangers. You’ll be exploring yourself, as well as a new country and culture.

Solo travel gives you complete freedom and independence. You never have to wait for your partner to pack up. You decide where to go, how far to travel, how much to spend or when to call it a day. If ad-libbing, it’s easier for one to slip between the cracks than two.

Of course, there are downsides to traveling alone: Accommodations typically cost more because you’re not splitting the bill, and you may be more vulnerable to

theft when you’re alone. But the biggest struggle is loneliness.

Fortunately, the continent is full of lonely travelers and natural meeting places. Staying in hostels gives you a built-in family (hostels are open to all ages).

Small pensions and B&Bs often have owners who have time to talk with you. City walking tours provide an easy opening to meet other travelers.

“

Solo travel gives you complete freedom and independence. You never have to wait for your partner to pack up. You decide where to go, how far to travel, how much to spend or when to call it a day. If ad-libbing, it’s easier for one to slip between the cracks than two.

The idea of eating alone can be intimidating -- until you do it. The key is to keep busy. Use the time to learn more of the language. Practice your verbal skills with the waiter or waitress (when I asked a French waiter if he had kids, he proudly showed me a picture of his twin girls). Read a guidebook, a novel or the International Herald Tribune. Do trip planning, write in your journal, or scrawl a few postcards to the folks back home.

Consider quick and cheap alternatives to formal dining. Try a self-service cafe, a local-style fastfood restaurant, or a small ethnic eatery. Visit a supermarket deli and get a picnic to eat in the square or a park. Grab a slice of pizza and munch it as you walk

along, people-watching and window-shopping.

If you like company, eat in crowded places that force you to share a table, or ask other single travelers if they’d like to join you. Most countries have a type of dish or restaurant that’s fun to experience with a group. When you run into tourists during the day, make plans for dinner. Invite them to join you for, say, a rijsttafel dinner in the Netherlands, a smorgasbord in Scandinavia, a paella feast in Spain or a spaghetti feed in an Italian trattoria.

Evenings can be tough if you’re feeling lonely. Use this time to visit an Internet cafe and send travel news to friends and family. Or go out and experience the magic of European cities at night. Stroll along well-lit streets, enjoying the parade of people, busy shops and illuminated monuments.

See Paris by night on a river cruise. Take advantage of the wealth of evening entertainment: concerts, movies, puppet shows and folk dancing. If you like to stay in, get a room with a balcony overlooking a square. You’ll have a front-row seat to the best show in town.

If you don’t feel comfortable traveling alone, consider joining a tour. With a tour, all of your hotel rooms are reserved, a guide plans most of your activities, and other tour members keep you company. If you’re willing to give up the option of having a flexible itinerary, a tour may be the right way for you to scratch your travel bug bites.

I’ve talked to too many people who put off their travel dreams because they don’t want to do it alone. Don’t delay. Just think of Europe as one big gelato social. The first step is to show up. (CNN)

Iphone 4, Apple’s latest touch screen phone

screen iPhone and Microsoft showed off a touch-screen coffee table called Microsoft Surface.

Now, as computer hardware becomes cheaper and people get more used to the idea that the mouse and keyboard aren’t the only way to compute, researchers are pushing into areas like brain-controlled computing, eyetracking software and voice-recognition technology, which is common on smartphones.

Bill Buxton, principal researcher at Microsoft Research, said that new ways for people to interact with computers have to be

radically different to catch on.

People are used to touch screens and video cameras now, he said, so the transition into gesture computing makes more sense.

“The trend [of gesture computing] has been around for a while, but it’s sort of hit a critical point where I think the game is changing,” he said.

“The most significant thing that’s changed about computing is who’s doing what, where, with whom and for how much.”

Despite the recent advances, a number of hurdles remain in the “natural” progression of electronics.

Robert Wang, a PhD student at MIT who has developed a gesture-controlled computing system, said it’s also difficult to use hand movements to manipulate digital objects because you can’t feel them.

“It’s going to be a little bit difficult to make a compelling sense of touch,” he said. Good visual cues may have to suffice, he said.

There’s disagreement in the tech community about whether these new methods of humancomputer interaction will completely kill the mouse, keyboard and computer monitor -- or if they’ll just offer alternatives.

Generally, researchers think the mouse might be the first to go.

The keyboard, however unnatural, likely will be around longer because it is such an efficient way

to write, and because people don’t want to learn new systems, said Mynatt of Georgia Tech.

Buxton, from Microsoft Research, said these new options aren’t competing with each other because they’re all good at something and terrible for something else.

Using Kinect on an airplane would be “completely absurd,” for example, he said, because you’d have to stand up on your plane seat and flail your arms around. Likewise, typing in a car is unsafe, and talking about private matters in public -- or even entering voice commands -- can be problematic.

“What I see is not that the gesture stuff is in competition with the mouse or with multitouch,” he said. “What all of these things do is they’re enhancing the palate of colors or the resources we can draw on, so that when we have something to do that involves technology, we can use the most appropriate means.”

Some researchers now are projecting the internet and information on walls and even onto peoples’ hands, in effect turning fingers into buttons of their own.

Pranav Mistry, a research assistant in the MIT Media Lab, said his goal is to get rid of computer hardware entirely -- so that people just interact directly with information.

“The hardware is becoming invisible,” he said.

Ultimately, he said, the digital world will fold completely into the real one.

The President Post

C8 August 12, 2010

www.thepresidentpost.com

Health

WHO WILL LIVE TO 100

?

I

f celebrating triple-digit birthdays sounds appealing, scientists may be able to determine if you’re likely to live that long.

Researchers from the Boston University Schools of Public Health and Medicine and the Boston Medical Center have identified genes associated with living longer. They also predicted using genetics alone many of those among study participants would be a centenarian. Their results will be published in the journal Science.

“Could these signatures tell a physician and their patient who’s going to be at increased risk for a particular disease sooner, and

Should You Tests Your Genes?

Photo: www.theepochtimes.com

People who live to 100 are a model of healthy aging. Research shows that about 90 percent of centenarians are disability-free until around age 93 can this lead perhaps to interventions that might help them? I think that’s a possibility down the road,” said co-author Dr. Thomas Perls of Boston Medical Center, in a press conference.

People who live to 100 are a model of healthy aging, the study said. Previous research shows that about 90 percent of centenarians are disability-free until around age 93, said Perls, founder and director of the New England Centenarian Study, the largest study of centenarians in the world, based in Boston, Massachusetts.

The study looked at 1,055 centenarians and 1,267 controls --

people who weren’t 100 yet. As much as possible, researchers matched the genetic backgrounds of controls to those born in 1910 or before.

But there’s approximately just one centenarian per 6,000 in the population of developed countries such as the United States; in 2010, there are about 80,000 in the U.S. There’s only one “supercentenarian” -- someone over age 110 -- in every 7 million people, Perls said. That’s partly because in the era when today’s centenarians were born, medicine was not as advanced, and average life expectancy was about 47. In other words, genetics isn’t everything; environment and lifestyle also play into living long.

Using their genetic model, researchers found they could predict with 77 percent accuracy who would live to be 100 or higher based on genetics alone in the sample.

“This is very important information that should make anybody aware that if we are going to find genes that are protecting us from aging, it is not an impossible mission,” said Dr. Nir Barzilai, director of the Institute for Aging Research at Albert Einstein College of Medicine in the Bronx, New York, who was not involved in the study.

Few centenarians have a history of smoking, and they tend to not be substantially obese, Perls

Jamu Power: Indonesia’s Cure-All Elixir Photo: www.datasunda.org

T

ucked deep in the heart of one of Yogyakarta markets, Ibu Siswu sits surrounded by bowls of herbal pulp, pots of elixirs and tiny coconut shell cups. After mixing the pulp in a brownish liquid she squeezes out the juice over a strainer. The result is a bitter-tasting tonic called jamu, a traditional herbal medicine venerated by Indonesians of all ages for its power to heal ailments or enhance one’s beauty, strength or stamina.

A young man wearing a t-shirt that reads, “They grow a mustache on you,” accepts the cup from Siswu and gulps down the cloudy liquid. His friend has a harder time, and winces with each sip.

Most teenagers prefer modern jamu capsules to the bitter tonics prepared by women such as Siswu. Her clients pucker their faces as they ingest the medicine, which is best taken immediately after preparation. Siswu scoffs at such cowardice: “Jamu should never be sweet,” she says.

An ancient tradition The practice dates back to the time of the Hindu empire that built Borobodur, and its association with the royal family, which popularized the drinking of herbal tonics, has added to its allure. Despite the loss of many traditions due to modernization, Indonesians still cling to their belief in jamu’s transformative powers.

Jamu makers often are elderly women -- Ibu being an honorary title meaning mother -- and jamu recipes vary from seller to seller.

Most are highly guarded family secrets passed down over generations.

Other jamu makers in

Prawirotaman ma rket sell the herbs used as the base for the tonics. One woman has packets of powder that can be added to water for use in baths or skin masks. Her most interesting novelty, however, is ampo, or “healthy earth,” which comes from the nearby province of Bantul. Replete with high mineral deposits, the earth is finely sliced, rolled, dried and roasted, making it a favorite snack among older women.

Disease control and fertility aid The tonics cover nearly every infliction imaginable -- from easing labor to increasing strength to treating coughs and fevers and protecting children from disease.

Mothers give jamu to their children from the time they start walking, and even animals benefit from these elixirs, since farmers feed the used pulp to their cattle.

Ibu Siswu sells mostly to women who come to shop at the market (the most popular drink is one that aids breast milk production).

Men tend to visit more modern jamu shops, which stay open late and sell pre-packaged versions of jamu. These shops specialize in medicine that increases one’s sexual drive and virility. The popular brand Kuku Bima, or “nail of the god” drives up men’s sperm count; while empot-empot helps women recover their sexual drive, and according to the box, “give something more than what is expected by a husband.”

Much like a doctor-patient relationship, people return to the jamu seller whose methods they

trust. Because the ingredients are fresh and all natural there are few side effects aside from the occasional upset stomach. Over the past few decades, however, home industries have sprung up to supply modern jamu shops, and these require government licensing.

Marlina Movitasari, who runs tours of Yogyakarta’s jamu markets, says some traditional methods have become increasingly scarce -- not out of a lack of respect, but because fewer youths are learning the technique of making jamu from their elders. But if the number of customers Ibu Siswu sees each day is any indication, jamu’s popularity is still thriving.

A few of the most common herbs in Jamu and their uses: • Turmeric—for detoxifying, to curb snoring, to ease menstrual cramping and reduce body odor.

• Galanga—for seasickness and sore throat. Singers often drink concoctions with this root to keep their vocal cords performing at top notch.

• Ginger—for detoxifying, morning sickness and to warm the body, improve circulation.

• Lemongrass—for alertness, to stop gum bleeding and repel mosquitoes.

• Tamarind—for constipation and to improve skin softness.

• Sulfur—for rashes and itchy skin. Also used frequently in beauty products.

(CNN)

said. Seventh-day Adventists, the religious group whose members have an average life span of 88 in the U.S., are another example of how lifestyle may impact longevity. Because of their religion, they have a vegetarian diet, exercise regularly, abstain from alcohol and smoking, engage in exercise, and manage stress well -- such factors may help them live well beyond the national average of 78 years.

Some of the genetic signatures identified in the study could are associated with delay in the onset of dementia, heart disease, diabetes or stroke, Perls said. Others are associated with being able to live a long life despite having one or more of those diseases for a long time.

“Understanding better the different pathways of getting to 100 will be very important,” he said.

Researchers also found three genetic signatures common among 40 percent of supercentenarians.

Surprisingly, researchers found little difference between centenarians and controls in terms of the number of genetic variants associated with diseases of aging, such as cardiovascular disease, stroke and dementia. That means that perhaps what makes centenarians live longer is not a lack of predisposition to such illnesses; it’s the enrichment of genetic variants associated with lon-

gevity, said Paola Sebastiani, lead author of the study and professor of biostatistics at Boston University School of Public Health.

Previous research in the genetics of healthy aging is already leading to the development of pharmaceuticals to help people live longer, Barzilai said.

One such type of drug is called a CETP inhibitor, intended to reduce “bad” cholesterol (LDL) and raise “good” cholesterol (HDL).

Merck & Co. is in phase III clinical trials for a CETP inhibitor called anacetrapib; Roche is currently recruiting participants for a phase III trial for another drug of this type called dalcetrapib.

“Our goal is not to make people live to 100; the goal is to have people have good quality of life and [be] free of disease at the end of their life,” Barzilai said. “I would say that longevity is a side effect of those drugs.”

Although companies may try to make tests to see who will live to 100, this information may not be valuable to the individual, as accuracy is only 77 percent and lifestyle factors are still important, Perls said.

But the results do point toward the era of personalized medicine, he said. The methods developed

by Sebastiani could be used to find out whether there are genetic signatures for positive or adverse reactions to certain medications, for example, Perls said. (CNN)

The majority of my dad’s side don’t live past their 50s, including my dad, his brother, his parents, etc. Only one is still living and he turned 61 this year, but had a heart attack, was diagnosed with cancer, and had a hernia and kidney stones all in the past three years alone.

Geneticists expected humans to carry at least 100,000 genes to account for human complexity. To their surprise, humans have less than 25,000 genes. That’s practically the same as monkeys. some worms have 18,000. These numbers are NOT enough to account for human complexity.

For every 1,000 people, only 1 have heard of phenotype and epigenetics. These are jokers riding on the backs of conventional geneticists that they don’t want to talk about in public. These put huge question marks on the theory that “specific genes carry specific traits”.

People are mortal. But the genes themselves can live forever, going from person to person, like a vine going from pot to pot. I read somewhere, before there were people, the genes themselves lived on the ocean and ate sunlight. Then they evolved into bodies and brains and finally ventured out onto land.

Gene is everything. It’s true that environment and diet has role to play on how long we live, but what your gene says weighs more than every other thing. That’s the reason a maize plant live for 1 year and an Iroko tree can live for a thousand years.

If we can locate the aging gene or solve the genetics of aging we can engineer species that can live for over 500 years and still be active.

This is no longer sci-fi but the start of a brave new world.

Some people will say we shouldn’t play God but to them I say “go ahead and die then” - I choose life!

Biblically clean meats are allowed such as beef, chicken and fish with fins and scales. Vegetarianism is considered to be the best route and typically one does not bring meat dishes to church potlucks out of courtesy to those who do not eat meat. less My grandma is 101 and is as sharp as a tack. Her Italian neighbors in a small town in California are all almost as old as her as well. Great Italian food, friends, family, and working in the garden I feel helped her and her neighbors stay strong and young for so long. (CNN)

The Spine Center at Sahid Sahirman Memorial Hospital Provides New Look at Handling Spinal Problems The new service provided at the Spine Center is Minimally Invasive Spine Surgery (MISS).

Besides the Spine Center, SSMH has other superior services, namely Urology, Female Health, Cardio Vascular, Neurosurgery, Diagnostics, and Premium Medical Check Up.

Sahid Sahirman Memorial Hospital (SSMH) in cooperation with Wooridul International Spine Hospital Korea opened the Spine Center at SSMH. The new service provided at the Spine Center is Minimally Invasive Spine Surgery (MISS).

Minimally Invasive Spine Surgery is a fresh new look at the handling of spinal disorders and spinal cord. The handling of such interference can be carried out not just by surgery, but also using alternative approaches such as conservative treatment (medicines) and medical rehabilitation/ physiotherapy.

This is also supported by the gradual diagnosis approach that will provide solutions to the problems of the spine towards the better.

Many today still consider spinal surgery carries the risk of paralysis or disability. By MISS, patients no longer

need to worry, as it represents the latest techniques of spinal surgery with the principles of minimal invasive, using equipment and technology procedures that minimizes damage to bones, nerves and other tissues in the vicinity of operations.

So MISS has several advantages, namely a small surgical wound, less damage of soft tissue, minimal blood loss, fewer complications, faster healing time etc.

SSMH Spine Center’s grand opening was held on July 24, 2010, officiated by Chairman and President of Sahid Group, Prof. Dr. Sukamdani S. Gitosardjono, and attended by the Chairman and the Owner of Wooridul International Hospital, Sang Hoo Lee. At the grand opening ceremony

was shown live surgery by Wooridul International Hospital in Korea and in SSMH with surgerical methods called percutaneous endoscopic lumbar disectomy.

The live surgery and the grand opening of the spine center aim to provide new perspectives to doctors on spine and spinal cord cases and its implementation, in order to increase support and health services for the community.

Besides the Spine Center, SSMH has other superior services, namely Urology, Female Health, Cardio Vascular, Neurosurgery, Diagnostics, and Premium Medical Check Up.