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Display until October 12, 2010 /// N0. 16
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With SBY, Indonesia Has Its Finest Hour Photo: www.presidenri.go.id
By Lukman Hakim
Indofood`s Profit Surges 76.4% in H1
As a president, Yudhoyono not only has to lead the nation but also deal with a host of national-level issues that many think can only be undertaken by him.
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t the end of his meeting with President Susilo Bambang Yudhoyono here last month, Volker Kauder, the chairman of the Christian-Democratic Union (CDU) and Christian-Socialist Union (CSU, a faction in the German parliament, told the press that “I am impressed by the way Indonesia [under the Indonesian president] was able to get out of the economic crisis which hit the country in the past.” The senior German politician also extended an invitation from German Chancellor Angela Merkel for Yudhoyono to meet on the sidelines of the Asia-Europe Summit in Brussels in October. The idea, he added, is to talk about efforts to strengthen the world`s economic structure within the G-20 framework in order to avoid financial crises in the future. Kauder also took time to admire Indonesian democracy, which he said upholds religious tolerance and harmony. On that very same day Yudhoyono reaffirmed Indonesia’s brand of democracy when speaking at the commemoration of the Descent of the Koran at the State Palace. “Everyone in Indonesia is free to practice his or her religion or faith,” he says, adding that “no group is allowed to force its will on others, especially by resorting to violence.” No national leader in the world today faces the unenviable task of maintaining a US$650 billion economy to sustain the welfare of 237 million people as Yudhoyono does, and at the same time try to ensure social harmony pervades among them. By the same token, few leaders as the four-star Army general have been chosen twice in a row by the people in direct and democratically-held elections. Says one foreign diplomat who refused to be identified: “There is still much to do, of course, but the president deserves credit for seeing Indonesia become a member of the G20.” “If his popularity has dropped, it reflects more the Indonesian
people’s unrealistic expectations than the president’s real achievements.” “Among so many other things, President Yudhoyono has provided a strong, calm center of gravity to anchor Indonesian society during a period of great political, economic and social change, “says James Castle of Jakartabased consultancy firm CastleAsia. In fact, Indonesians have never had it so good. Its economy is booming marked by exports that allow it to have over US$80 billion in foreign reserves, an unheard of figure in the annals of the 65-yearold republic. Inflation is meanwhile single digit while the annual economic growth figure is expected to pass the 6% mark by the end of the year. Its automotive industry is the largest in Southeast Asia, employing hundreds of thousands of skilled workers. Sure, about 13% of the population lives below the World Bankdefined poverty line, and unemployment remains an unfinished business. At the same time, however, one can not help but notice the growing wealth of ordinary Indonesians as many of them nowadays no longer shop for basic needs in traditional markets but in hypermarkets. As a president, Yudhoyono not only has to lead the nation but also deal with a host of nationallevel issues that many think can only be undertaken by him. Hikmahanto Juwana, professor of international law at the University of Indonesia (UI), for example, has called on Yudhoyono to should personally lead the Indonesian delegation in talks to ease the tensions over border issues with Malaysia. While the meeting would actually be held at foreign ministerial level, he said, “it would be better if the President attended and lead the Indonesian delegation.” Yudhoyono took Juwana’s cue as a snub on his subordinates but has been careful in maintaining their integrity. This, however, has not pre-
Publicly-listed instant noodle maker PT Indofood Sukses Makmur Tbk said last month its net profit in the first half of 2010 surged 76.4% to Rp1.14 trillion from a year earlier, thanks to improved operational performance. Core profit in the first semester of 2010 almost doubled to Rp1.38 trillion from Rp595.2 billion in the same period last year, Indofood President Director Anthoni Salim said in a press statement. Consolidated sales in the first semester of 2010 reached Rp18.12 trillion, a 0.2% increase compared to Rp18.08 trillion in the same period last year, he said.
When Yudhoyono finishes his term in 2014, he will be only 65, the prime age when most statesmen of his stature traverse beyond national borders and take on larger global issues.
While many may discreetly agree that a third term for Yudhoyono may not be an entirely bad idea for the good of the nation, the president strongly opposes it. vented him from rebuking his ministers for being unresponsive to criticisms. “As part of the government you should be more proactive in reponding to problems and not hide or remain silent,” he said at a plenary cabinet meeting. “Not all problems must be explained by the president, as I will only enter into certain problems. Ministers have to explain, to communicate with the people with good will. Understand the essence and respond to public criticism properly,” he said. While many may discreetly agree that a third term for Yud-
hoyono may not be an entirely bad idea for the good of the nation, the president strongly opposes it. “I and I think all people share my view to reject and oppose the idea,” the president said in his address to mark the Constitutional Day at the People`s Consultative Assembly/House of Representatives/Regional Representative Council building here last month. The president was responding to media reports quoting a statement by a politician, who planned to propose an amendment to the constitution to extend the tenure of the president to three terms.
More Chinese Tourists Visiting Bali
Photo: www.taprobanetours.com
China ranked third after Australia and Japan as a source country of foreign tourists visiting Bali in the first half of 2010 with 98,258 tourists, up slightly from 97,930 a year earlier. All of them came to Bali by direct flights from their country, Head of the Bali Provincial Statistics Office Ida Komang Wisnu said last month. Chinese tourists made up 8.33% of the overall tourist ar-
rivals in Bali in the first half of 2010 reaching 1,180,118, a 10.23% increase compared to the same period last year. He said six out of top ten source countries of foreign tourists saw an increase in the number of their citizens visiting Bali in the January-June 2010 period, while the number of tourist arrivals from the other four declined.
INTERVIEW
THE ECONOMY
BUSINESS
HEALTH
TRIE UTAMI:
Government Upbeat on Paying Debts in 2011
Garuda to Conduct IPO in Late November 2010
Mochtar Leads the Way in Improving Health Service
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Trie Utami has been in the entertainment world for years, but she declines to be called a celebrity and prefers to be called an art worker as, according to her, “art is beyond borders“. PAGE A3
In 2011 the figure would increase to Rp110 trillion consisting of Rp65 trillion in state bonds and Rp45 trillion in foreign debts.
Garuda`s management once said it expected to raise US$300 million from the IPO.
Dr. Mochtar Riady, founder of the Lippo Group, took the rare initiative to implement a comprehensive health development strategy with the opening of Siloam Gleneagles Hospital in 1996.
Yudhoyono is now serving his second five-year term which will end in 2014. When the constitution was amended Yudhoyono was chairman of the Armed Forces faction in the House of Representatives and was among those agreeing to the restriction on the presidential tenure to a maximum of two terms. “I encouraged the idea to restrict the presidential term of office to a maximum of two terms,” he said. “I will be consistent,” Yudhoyono said. Indonesians recently had another glimpse of Yudhoyono’s statesmanship when the president called for calm and insisted that preserving good relations with Indonesia’s neighbor is paramount. “The first principle should be that we have to maintain our good relations,” he said. His statement came as the media was abuzz with mounting public indignation over Malaysia’s arrests in early August of three Indonesian maritime officers, which Jakarta said took place within Indonesian territori-
al waters off the Riau Islands. But lest anyone mistook his statement as a sign of weakness, the president immediately followed it up by saying” “Please don’t misunderstand. If it pertains to our fundamental interests, our sovereignty and our territory, we should of course do what we have to do,”. When push comes to shove on territorial issues, he said firmly, “there is no compromise.” According to Anies Beswaden, rector of Paramadina University, Yudhoyono could become a regional leader of immense significance. “He could emerge as a global leader,” he said, noting that Indonesia had banked a huge amount of international goodwill for holding a peaceful election when the region was beset by political turmoil. “I think his destiny and legacy will be in the international sphere.” Indeed, when Yudhoyono finishes his term in 2014, he will be only 65, the prime age when most statesmen of his stature traverse beyond national borders and take on larger global issues.
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“Our gross and operating profit margins grew to 32.5% and 17.2% respectively.” Anthoni Salim Indofood President Director
The increase was mainly contributed by Indofood`s Consumer Branded Products (CBP) unit, reaching 47% of the consolidated sales in the first half of 2010. This compares with 43% in the same period last year. However, contributions from the company`s agribusiness unit to the first-semester sales stagnated, he said. “The Bogasari group`s contribution to the consolidated net sales fell 26% from 30% in the same period last year particularly because of a shortfall in the prices of wheat flour. The agribusiness and distribution units contributed 19% and 8% of the sales respectively,” he said. Indofood`s gross profit rose 24.6% to Rp5.88 trillion from Rp4.72 trillion in the same period last year. Operating profit jumped 40.3% to Rp3.12 trillion from Rp2.22 trillion. “Our gross and operating profit margins grew to 32.5% and 17.2% respectively,” he said.