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SBY Hails RI-China Film Venture

RI Aims for 15 pct Investment Growth in 2011 Indonesia expects investment next year to grow by 15 percent of the target of Rp160.1 trillion for this year. Analysts are upbeat the target could be met but pointed out that much needs to be done to improve the investment climate. Lengthy licensing procedures,inadequate infrastructure, lack of transparent taxation system, restriction on foreign investment, limited access to land and poor protection of investment are likely to remain obstacles, they say.

By Jeannifer Filly Sumayku

JAKARTA (TPP) – President Susilo Bambang Yudhoyono (SBY) last month spoke The IndonesiaChinese Business Forum in Shanghai and praised the wide-ranging fields businessmen from both countries are engaged in, including filmmaking.

“This offers the potential for growth in many industries, including in services and creative industries such as animation, ITbased content industry, film, music, fashion and so on,” he said. “We recognize that China is also restructuring towards more value added and services based industry. There is the potential for collaboration here --- our creative base and your technology, our dynamic innovation and your R&D and so on.” He added: “We see concrete cooperation between an Indonesian animation company to produce and distribute an animation large screen film and TV series on Zheng He.” “This is very symbolic, since we all know Admiral Zheng He came to Indonesia many times on a peaceful mission of trade and culture some 600 years ago. Now we are continuing this cooperation in the new age field.” The meeting was organized by the Indonesian Embassy and

The Organization of Economic Cooperation and Development (OECD), in its new report issued early this month, recommends Indonesia continue to simplify the business licensing process to attract more foreign direct investment into the country. Economist Anggito Abimanyu of Yogyakarta-based Gadjah Mada University (UGM) meanwhile said a lack of effective and transparent taxation system is one of the stumbling blocks to investment into the country. “Indonesia needs a large amount of investment. To boost the investment climate the government can reduce tax, particularly that of corporate taxpayers,” he said in a seminar in Yogyakarta recently.

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“This year, we celebrate the 60th Anniversary of our diplomatic relations. We are also marking the first five years of our Strategic Partnership, and the completion of the implementation of the China ASEAN FTA,” the Indonesian head of state said.

China Council for the Promotion of International Trade (CCPIT). SD Darmono, the president director of PT Jababeka, a prominent businessman who is at the forefront in boosting trade and business relations between the two countries, said films are a viable means to bring together and unite Indonesia’s diverse ethnic groups of different levels of social and education backrounds.

Transportation, telecommunications, infrastructure, food industry and real estate sectors will continue to attract investment.

“We need a sophistictated vehicle to expedite Indonesian unity, and I think films are one of the options,”Darmono, who signed an agreement with he said. “However, we are still weak in contents. That’s why we need to develop our human resources, and one way of doing that is to have filming facilities that are efficient and of good quality. Jababeka, which is strategically located, houses 1500 companies from over 30 countries and is well-suited as a film industry enclave. It is also where President University, which is now setting up a film school, is located.” He further said that Jababeka is developing a film industry site called Indonesia Movieland covering 36 hectares of land. “So far 40 films have been made in Jababeka, which provides facilities such as, among others, golf course, housing complex, and hospitals,” he added.

Gita Wirjawan BKPM Chief

President SBY was giving a speech at the Indonesia-Chinese Business Forum in Shanghai, last month.

“We are building studios that will be ready early net year, allowing filmmakers to shoot, lease equipment and uniform and others.” “We and Nanjing and a leading national animation company, Castle Production, have agred to do animated serials on Zheng He that will be shown by CCTV,” Darmono said. The animated film is designed for children, and recounts Zheng He’s travels in Asia, Europe and even the Americas in his quest to open trade relations and foster good relations with other countries.

The film will be made at the ICT Training Center (ICT Information and Communication Technology) in Jababeka, which was built by the Ministry of Communications and Information (Kominfo) thanks to a US$10 million grant from South Korea.

Obama’s Visit Beneficial to RI: MPR Chairman People`s Consultative Assembly (MPR) Chairman Taufiq Kiemas said President Obama`s state visit to Indonesia “will be of benefit to the country. Obama`s visit was also an opportunity to discuss improvement of exonomic cooperation with the US with the aim of increasing Indonesia`s economic growth, he said. “The US has an interest in Indonesia as it is the largest country in Southeast Asia, moreover, Indonesia will chair ASEAN in 2011,” he said.

ket for the US. Taufiq called on the Indonesian people to welcome the US president when he arrives on Tuesday afternoon.

Inter-Parliamentary Cooperation Body at the House of Representatives (DPR). “This will give a clear picture that Islam is a good religion which does not accept any form

of violence, including acts of terrorism,” she said. Assegaf said Obama`s visit to the mosque was a correct step as it would have a positive impact on the Indonesian people`s perception of the US. Obama`s speech at the mosque would be an important opportunity to touch on US relations with Islam in foreign countries, especially Indonesia. Nurhayati also expressed hope that the United States government would help accelerate the peace process in Palestine. “I hope that the United States` role in Palestine will be that of restoring the rights of the Palestinians,” she added.

He added Indonesia, whose population was the third largest in the world, was a potential mar-

Visit to strengthen US ties with muslim world: Legislator The visit of Obama in Indonesia is expected to strengthen US relations with Muslims around the world, especially in Indonesia, an Indonesian legislator said. “Obama has scheduled a visit to Istiqlal Mosque, and this will be a gesture of respect to all Muslims, particularly in Indonesia whose Muslim population is the largest in the world,” said Nurhayati Ali Assegaf, Vice Chairperson of the

VIEWPOINT

INTERVIEW

INVESTMENT

MINING

Mining’s Strategic Role in the Indonesian Economy

Susan Bachtiar: Beauty, Brain & Passion

Astra to Expand into Three Other Sectors

Indonesia’s Top Performing Listed Companies by Sector in 2010

The mining sector plays an important role in Indonesia’s economy, most importantly as the source for state revenue, capital investment, economic multiplier effects, jobs and employment, as well as regional development. PAGE A2

I am proud to see more and more Indonesian students win in international science or math competitions. They have the potentials.

PAGE A3

IDR 20,000

MPR Chairman Taufiq Kiemas

Astra plans to expand its operations by also engaging in heavy-duty mining equipment, agribusiness and infrastructure development.

PAGE B3

This year’s ranking of listed companies by the Investor magazine is divided into 18 sectors in line with the sectors represented on the Indonesian Stock Exchange. PAGE C2

“Zheng He is often said to have brought Islam to Indonesia. So the film is abound with cultural and trade aspects,” Darmono explained. The film will be made at the ICT Training Center (ICT Information and Communication Technology) in Jababeka, which was built by the Ministry of Communications and Information (Kominfo) thanks to a US$10 million grant from South Korea. Meanwhile, Ardian Elkana, the owner of Castle Production, confirmed that the film would be produced at Movieland. “I am convinced that Movieland will grow as it is part of an industry with a high added-value. Movieland is set to provide one-stop film industry services that you find in Hollywood,” he added. The film has a budget of US$9 million and will be ready by the end of 2011 and shown in 2012.

Another UGM economist Rimawan Pradiptyo said the government must focus on infrastructure, legal certainties, overlapping bylaw. BKPM has projected a 15 percent investment growth for 2011 from the target of Rp160.1 trillion for this year. In his keynote speech at an economic forum here early this month, BKPM chief Gita Wirjawan noted transportation, telecommunications, infrastructure, food industry and real estate sectors will continue to attract investment. In addition, he added, Indonesia has increasingly become stable politically in recent years, another strength that may allow the country to become an economic giant alongside Brazil, Russia, India, and China (BRIC). Indonesia also has been enjoying a steady and strong economic growth of 6.0 percent averagely in recent years, he said. Total investment in the first nine months of this year rose 33.4 percent to Rp 149.6 trillion from Rp 112.1 trillion in the same period last year. A great chunk of the investment came from foreign investment, contributing Rp 111.1 trillion or nearly 76 percent to the total. BKPM Deputy Chief Yus`an said late last month the agency is optimistic the country will reach the governmentset investment target of Rp160.1 trillion. “We believe the target can be achieved. Given the existing trend we hope it can reach Rp180 trillion (this year),” he said. “The realization of investment until September 2010 accounts for 93.4 percent of the target of Rp160.1 trillion for 2010,” he said.

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A2 November 12, 2010

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Viewpoint Mining’s Strategic Role in the Indonesian Economy By Dr. Darwin Zahedy Saleh

Indonesia is endowed with some of the world’s richest untapped reserves, namely coal, copper, gold, nickel and tin. The country is even prospected to have some of the world’s largest deposits of coal, gold and copper. However, most of them are still yet to optimally developed, especially in terms of added-value creation.

Photo: The President Post/Nandi Nanti

he mining sector plays an important role in Indonesia’s economy, most importantly as the source for state revenue, capital investment, economic multiplier effects, jobs and employment, as well as regional development. Last year, this sector together with the energy sector accounted for 35% of state revenue. Moreover, the sector has performed well despite the global economic crises, pressure on environmental issues and fluctuating commodity prices. We are experiencing a shift of paradigm: from centralized to decentralized policy. To adapt this situation, Indonesia has issued Law 4/2009 on Mineral and Coal Mining, which in turn also affects licensing system, DMO policy and added-value requirement on mining products. On the other hand, ASEAN and the world market are experiencing higher trade intensity on mining products, and witnessing a rapid growth of China’s and India’s economy, which demand more and more mining products. In line with that, they are driving the necessity for environment and human rights protection, and more democratic and transparent condition.

Minister of Energy and Mineral Resources Dr. Darwin Zahedy Saleh at the 9th Asia Pacific Mining Conference and Exhibition at Shangri-La Hotel, Jakarta, in October 2010.

ation. Those development would require technology and capital, and as such companies and investors are welcome to participate. We need capital and appropriate technology to develop these opportunities. In this regard, many countries in Asia-Pacific as well as the ASEAN member

countries have many experiences and knowledge to share with us, namely in downstream or added value industry. I do hope that we can share our experience and knowledge, and develop cooperation to optimally benefit from those natural resources.

The added value of mining industry, such as processing and refining, has a very strategic role to support Indonesia’s economy. As mandated by Mining Law No.4 Year 2009, the Government has issued Regulation No.23/ 2010 regarding the Implementation of Mining and Coal Business Activity. This Regulation requires that mining business license holders (IUP), special mining business license holders (IUPK), and Contract of Work and Coal Contract of Work companies to develop mineral and coal processing and refining in order to obtain higher added value as stipulated in Article 93 to Article 96.

The added value of mining industry, such as processing and refining, has a very strategic role to support Indonesia’s economy.

In terms of mining industry, Indonesia currently benefits mostly from taxes paid and royalties imposed. In fact, the bigger benefit resides within the addedvalue. The new mining law and its implementative government regulation carry a strong message to improve current practices and eventually increase state income, job opportunity and prosperity.

Under current global mining commodity market trends and fluctuating supply and demand, I believe that it is now time for us to go hand-in-hand to closely develop cooperation—the mining sector has been and will continue to be essential to our economic growth in Indonesia.

Moreover, the most important aspect that we need to implement is the development of an integrated upstream-to-downstream industry, from the activities of mining, processing and utilization. This is certainly not an easy task, all stakeholders must work

together and formulate strategies to make it work.

Dr. Darwin Zahedy Saleh is Minister of Energy and Mineral Resources. This is his speech at the opening of THE 9TH ASIA PACIFIC MINING CONFERENCE AND EXHIBITION at ShangriLa Hotel, JAKARTA, in OCTOBER 13, 2010.

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November 12, 2010 A3

Interview SUSAN BACHTIAR

Beauty, Brain & Passion Born in Jakarta in 1973 and the youngest of five sisters, Susan Meilani Bachtiar started her professional career as a model. Known as a pretty face in show biz, the chief editor of Hello Magazine shares with The President Post’s Zara Zettira ZR her hidden passion in child education.

Tell us about your childhood. Have you always wanted to become a model and actress? Never in a million years! My parents supported me doing modeling work in the hope that it will help me to become more social and to overcome my shyness. I was a super quiet girl. A loner and a tomboy! You are the only one in your family who is “a celebrity”. What’s your family background? We grew up in a Chinese area in Jakarta. My family owns a bakery. My parents didn’t get a chance to pursue their education. At the time university education was only for people from higher levels of society. The average people could never enter universities. As such, education is the most important thing in my family. They want their children to get as much education as possible. Even though they support my career in show biz, education is still their number one priority. You became a teacher for that same reason? Actually, I always wanted to be a doctor. I love helping others and interact with people who need me. I failed my test to enter a prestigious university and was going to try again the following year. While I was waiting to do another test, my sister told me to join the English program at the University of Atmadjaya just to fill my time for a year. I end-

ed up loving it. Then I found out that I had an option to continue to teach at the faculty. I just went along with the flow because I enjoyed it. Before I knew it, I graduated as an English teacher! How did you feel being a teacher for the first time? I felt nervous, of course. My biggest challenge was teaching university students. They have known me as a public figure. I had to put a straight face and try not to be too friendly with my students. Actually,I prefer to teach kindergarten kids. I love the interaction. Children are eager to learn. Young adults think school is an obligation, while kids never stop asking questions. Older students are more eager to get out from classrooms as soon as possible. What’s your opinion about the education system in Indonesia? We are so advanced yet so behind. The gap between students in small villages and in big cities is too wide, just like the economic gap. But I am proud to see more and more Indonesian students win in international science or math competitions. They have the potentials. The government needs to give more attention to other areas rather than just focusing on education in a few big cities. I went to a school in a very small village somewhere in Central Java. Their math teacher had the knowledge equal to a 5th

grade student in Jakarta! Can you believe that? If the teacher is far from being qualified, what would you expect from their students? Education is very important and fundamental for the sake of our nation’s future. People can’t get proper education because they cannot afford it. My experience tells me differently. I once asked a little street girl to join my class for free. I fought with the school board to accept her, but her parents rejected the idea! They’d rather have their daughter help them with their work and make money than see her get an education! This proves that some people just don’t understand how important education is. We need to change the way people think about education. Perhaps you can do more if you are in the government? I don’t like politics. Knowledge is exact, that is 1+1= 2. That’s it. Politics for me is a jungle filled with uncertainty. I will just do what I’m best at and pray that politicians will do the same. Wh ever you are, you have to share your knowledge to help and serve others. If we all try to be half selfish as we are now, I’m sure the world will be a better place. As I am now in the media, I hope I can contribute to change the Indonesian people’s perception about education and encourage them more than before.

“

We are so advanced yet so behind. The gap between students in small villages and in big cities is too wide, just like the economic gap. But I am proud to see more and more Indonesian students win in international science or math competitions. They have the potentials.

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A4 November 12, 2010

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The Economy Govt Plans US$60 billion Economic Corridors

ECONOMIC UPDATES South Sulawesi gets new infrastructure President Susilo Bambang Yudhoyono last month infrastructure projects in South Sulawesi province intended to spur the local economy and give the greatest possible benefit to the community. The newly-inaugurated projects include the Andi Mattalata ferry port worth Rp32 billion in Garongkong, Barru district, the Pamatata seaport worth Rp54 billion and the Lagaligo airport worth Rp54 billion in Luwu district. The others were facilities worth Rp548 billion at Sultan Hasanuddin international airport in Makassar.

Bulog channels 2.3 million tons of rice for poor State logistics agency Bulog has up to October 2010 distributed 2.3 million tons of subsidized rice for the poor (Raskin), or about 92.8 percent of the target, its president director Sutarto Alimoeso said. “We have distributed 2.3 million tons of Raskin up to October, which is 92.8 percent of the targeted 2.5 million tons,” the Bulog president director said here on last month. He said that the government has targeted itself of distributing 3.29 million tons of subsidized rice for 12 months in 2010 for 17.5 million Sutarto Alimoeso targeted families. Each poor family has an allocation of 15 kg rice with a price of Rp1,600 per kg or about 30 percent lower than the normal price. In this case Bulog was assigned by the government to distribute Raskin in 50,000 places throughout Indonesia through 1,200 warehouses of Bulog in various regions, he said.

All economic development which is intended to improve the economic welfare in all regions in Indonesia will be divided into six economic zones.

he government is discussing a US$60 economic corridor development plan which will divide the country`s economic development areas into economic zones and clusters beginning in 2011, Chief Economic Minister Hatta Rajasa said. “Called Indonesia Economic Corridor 2011, the zoning economic development will need a fund of US$60 billion and will jointly be supported by a number of parties such as private firms, public private part-

nership, foreign assistance, stateowned companies (BUMN) and state and regional budget (APBN/APBD),” the coordinating minister for economic affairs said herelast month. He said that the Indonesia Economic Corridor 2011 scheme was a mid-term economic development plan whose implementation was expected to proceed until 2025. Based on the scheme, all economic development which is intended to improve the economic welfare in all regions in Indonesia will be divided into six economic zones. Hatta said that the plan would be launched by President Susi-

lo Bambang Yudhoyono in 2011 and at present his office was still discussing it with the relevant agencies to draw up strategies to realize it. The minister said that each zone would be developed in accordance with its potentials and would be directed to create work balance among respective zones. The economic zone development would give priority to the creation of new work opportunities for local people, not people coming from other regions. The minister cited Lampung as an example. It would be transformed into a new economic corridor with the government support to develop the Sunda Strait Bridge (JSS). “The JSS is an obligatory project that should be done immediately owing to the fact that its function is strategic for the development of the economic zone in the area,” he said.

Govt buys back bonds worth Rp170 bln

Electricity Subsidy for 2011 Set at Rp40.7 trillion

The Indonesian government bought back state bonds worth Rp170 billion in an auction on Monday, a Finance Ministry official said. The repurchase of the three series of bonds maturing between 2011 and 2013 was aimed at reducing the amount of outstanding state bonds issued at a high coupon by considering cost effectiveness, Rahmat Waluyanto, the ministry`s director general of debt management, said at the parliament building here. It was also intended to manage state bond portfolios by rearranging the structure of maturing bonds as part of risk control, he said.

The government and the House also agreed to postpone payments for electricity subsidy debt amounting to Rp4.6 trillion until 2012.

Rice stocks enough until February 2011

Third Party Funds at Banks Increase by Rp3.46 trillion The Central Board of Statistics (BPS) has predicted that the country`s rice production in 2010 would reach 64.9 million tons.

Rice stocks of National Logistics Agency (Bulog) are enough to meet the need until February 2011, Bulog President Director Sutarto Alimoeso said. “We have over one million tons of rice stocks which are enough until February 2011,” the Bulog president director told a seminar on food self-sufficiency here recently. Based on the official website of the ministry of agriculture, rice prices ranged at between Rp5,500 and Rp7,100 per kg. The Central Board of Statistics (BPS) has predicted that the country`s rice production in 2010 would reach 64.9 million tons or 0.88 percent higher than the initial estimate in 2009 at 64.33 million tons.

Chief Economic Minister Hatta Rajasa: Indonesia Economic Corridor 2011 scheme was a mid-term economic development plan whose implementation was expected to proceed until 2025.

The increase in third party funds particularly came from the increase in the rupiah currency by Rp6.44 trillion. Bank Indonesia (BI, or the central bank) recorded that third party funds at banks had increased by Rp3.46 trillion to Rp2,132.83 trillion, a BI official said. BI Spokesman Difi A Johansyah said the increase

in third party funds particularly came from the increase in the rupiah currency by Rp6.44 trillion, while third party funds in the form of foreign exchange dropped by Rp 2.98 trillion. Thus, third party funds in a year grew 8.24 percent or increased to Rp165.38 trillion,and on year-to-year it rose by 16.94 percent to Rp308.99 trillion. He said that the relatively high increase in third party funds came from the rise of third party funds in three groups of banks, namely private, limited liability and mixture of the two, with the highest one at the limited liability banks

reaching Rp6.80 trillion. In the meantime, third party funds in the form of rupiah at foreign bank branches (KCBA) and regional development banks (BPD) were respectively recorded at Rp6.67 trillion and Rp1.79 trillion. The third party funds in the form of foreign exchange also increased at KCBA and mixture banks with the highest one at the latter reaching Rp0.54 trillion,while that in the groups of private, limited liability and BPD experienced a drop with the highest one at private banks amounting to Rp2.19 trillion.

The House of Representatives (DPR) and the government agreed on Monday to set electricity subsidy at Rp40.7 trillion under the draft 2011 state budget. “Therefore, there will be no power rate hike (next year),” Olly Dondokambey, coordinator of the basic assumption, state revenue and budget deficit of the DPR`s budget committee, said at a working meeting with the government. At the meeting, the government and the House also agreed to postpone payments for electricity subsidy debt amounting to Rp4.6 trillion until 2012. Also present at the meeting were Finance Minister Agus Martowardojo, National Development Plan-

ning Minister/Chief of the National Development Planning Agency (Bappenas) Armida S Alisjahbana, Deputy Finance Minister Anny Ratnawati and Deputy Bank Indonesia Governor Ardhayadi. Martowardojo said both the government and parliament agreed not to raise power rates next year and therefore, the national power supplies must be managed properly. “The power rates have been raised 10 percent in 2010. The government and the DPR have agreed not to raise the power rates (in 2011). But this does not mean that we do not want our power supplies managed properly,” he said.

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November 12, 2010 A5

The Region GLOBAL ECONOMY:

Challenging Times For Asia By Atmono Suryo

Asia’s resilience and strong bounce in economic activities has risen not only as a result of rising exports but also growing domestic demand, reflecting the rapid growth of their economies.

FORCES OF CHANGE lobalization and regionalism are two main forces of change which have transformed the world in many ways, affecting many regions, countries and societies in an extraordinary way. In Asia, however, there is the need to add another driver of change, namely the global, historical power shift from the West to the East. For more than a few decades after World War II Asians felt that Europe’s attention, with their inward-looking policies and the United States with their global ambitions, were mostly interested in regions which could satisfy their immediate needs. It became a highly Western-interests oriented world. Asia was in a state of neglect; left on its own to survive. Asia was considered as a region ravaged by war (World War II, Korean and Vietnam wars) and continuous regional frictions and hostilities. Asia was seen as a poverty and diseases-stricken area, burdened with immense social and political problems. But the long-awaited historical shift continued to move, lit-

tle noticed by the world community. Then came almost as a big surprise: The Rise of Asia. Before the world realizes two giant countries China and India, appear on the world scene. One would recall that Japan and the Asian tigers were actually the forerunners of the changing Asia. As the widely respected diplomat from Singapore, Kishore Mahbubani, rightly states in his book “The New Asian Hemisphere” Asians have been bystanders for two centuries in world history, reacting defenselessly to the surges of Western commerce, thoughts and power. That era is over. Asia is returning to the center stage it occupied for many centuries before the rise of the West. The return of Asia to the center stage will bring enormous challenges and responsibilities to Asia. At the same time Asia will be blessed with new opportunities. A new horizon, a new momentum is rising in the East. Asia will be heading towards challenging but golden Times in the decades ahead. CHALLENGING TIMES As confirmed recently by the ADB (Asian Development Bank) Asia has emerged from the 1997-

98 financial crisis and the 20082009 world crisis on a firm footing. Asia’s resilience and strong bounce in economic activities has risen not only as a result of rising exports but also growing domestic demand, reflecting the rapid growth of their economies. The Economy of Asia Population:

4 billion (60%)

GDP (PPP) (US$):

US$24.077 trillion (2009)

GDP (Currency) (US$):

$16.774 trillion (2009)

GDP/capita (PPP) (US$):

$7,041 (2009)

GDP/capita (Currency) (US$):

$4,629 (2009)

Annual growth of per capita GDP:

7.5% (2010)

Income of top 10% Millionaires (US$):

3 million (0.06%)

Unemployment:

3.8% (2010 est.)

Source: Wikipedia-IMF

Asia is a region with the largest population in the world: with more than 4 billion people (69% of the world population), a growing well-educated middle class, a total GDP of $16.774 trillion or PPP $24.077 trillion). According to some statistics the largest economies in Asia, in terms of nominal GDP, are China, Japan, India, South Korea, and Indonesia. In terms of economic growth in 2009 Indonesia was included in the big three, after China and India. With rapid economic growth,

large trade surpluses with the rest of the world, Asia has accumulated over US$4 trillion of foreign exchange reserves – more than half of the world’s total. Globalization For Asia globalization has brought many good things. With the arrival of globalization the countries of East Asia including Indonesia opened themselves to the international world. Asia took advantage of globalization to expand their exports. As a consequence thereof, Asia grew faster. Asia increasingly recognized, however, that globalization has not brought the promises people expect. There is a growing divide between the haves and the have-nots. This trend is not only among countries but also within Asian countries. Neither has it succeeded in reducing poverty in a more effective way and ensuring global economic stability. Countries are suffering from the inflows and sudden outflows of speculative “hot money”. As time goes by globalization has now become a controversial issue. In Indonesia for example the question of “neo-liberal policies” has become a hot issue. It will be a big challenge for Asia to cope with the still pending problems and challenges of globalization. At the same time being at the center stage Asia with its rising innovation spirit will have the golden opportunity to reap the benefits of globalization, particularly

in the economic and business areas, the two areas of strength in the New Dynamic Asia. Regionalism The President of the Asian Development Bank, Haruhiko Kuroda, stated in a nutshell last year about the situation in Asia. As he stated, Asia’s success story is about more than rapid development, poverty reduction, and an ever-expanding middle class. It is more than the production and distribution networks that place Asian goods within easy reach of consumers around the globe. It is more than labor–intensive industries, high-tech production of intermediate goods, or the final products assembled in Asia’s myriad plants and industrial estates. Part of Asia’s success story is also the growing integration which is gaining momentum. This will be the challenge for Asia to develop a well-integrated new, modern Asia. The growing integration in Asia is mostly market-driven. It will indeed not be easy for Asia to develop the right regional schemes. But despite its enormous size and diversity, Asia’s regional cooperation and integration schemes, which is market-friendly, multitrack, and multi-speed, seems to be the right answer for Asia, coupled with a high degree of pragmatism and implemented in “the Asian way” To a certain degree such approaches are being done by the ASEAN countries. Asia’s cooperative architec-

ture or schemes covers many forums, from sub-regional to interregional ones. So far these efforts are mostly centered on ASEAN, which has a long history and rather advanced frameworks for regional cooperation. ASEAN should continue to assume that role with the cooperation of big countries China, India, Japan, the United States, Russia and the European Union. The ASEAN+3 (ASEAN plus China, Japan and South Korea) seems to be the most effective and useful center stage. In addition there is the East Asia Summit (EAS) which comprises of ASEAN+3 plus Australia, India and New Zealand and is a broader forum. It is planned that EAS will be formally joined by Russia and the United States. Asia is on track in its surge towards the development of a New Asia connected to the global economic structure. In an update to its annual outlook report issued in July 2010, ADB expects Asia (excluding Japan) to grow 8.2% on average for the year 2010, up from its earlier forecast of 7.9%. Over the next five years, however, East Asia may face a weaker global economy. Historical shift World history demands it is Asia’s turn to be at the center stage of the world economy. But to be at the center stage will not be easy for Asia with its vast size, its wide range of differing economies and stages of development, differing cultures,

It is important to note that Asians have become innovative in their own way. It is most likely that Asia will not only continue with those four agenda points but will come up with their own corrections and adjustments. environments, historical ties and government systems. As Kishore pointed out, Asians have absorbed and understood Western best practices, from open-market economics to the embrace of innovative science and technology, meritocracy and the rule of law. It is important to note that Asians have become innovative in their own way. It is most likely that Asia will not only continue with those four agenda points but will come up with their own corrections and adjustments. In addition, Asia should come up with a number of new Asian paradigm and action programs to boost its emerging economies. The writer is former ambassador to the EU.

JAKARTA INTERNATIONAL DEFENSE DIALOGUE (JIDD) 23 – 25 MARCH 2011 BALAI SIDANG JAKARTA CONVENTION CENTER INDONESIA

Hosted by:

Organized by:

Ministry of Defense Republic of Indonesia

IDU-Indonesian Defense University

FOR THE FIRST TIME IN JAKARTA THE MINISTRY OF DEFENSE, REPUBLIC OF INDONESIA WILL HOST OFFICIAL DEFENSE

DELEGATIONS FROM OVER 40 COUNTRIES TO MEET AND DISCUSS STRENGTHENING SECURITY AND STABILITY

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The President Post

A6 November 12, 2010

www.thepresidentpost.com

ASEAN ASEAN ECONOMIC OVERVIEW:

Investment Flows By Atmono Suryo

ASEAN’s position in the area of global trade is strong enough. Its position in FDI international flows, however, is still on the weaker side. Much work has still to be done to develop ASEAN to become an attractive investment destination.

FDI Inflows to ASEAN, 2004 - 2008

sources of Inflows to ASEAN, 2008

US$ (billion) Republic of Korea 2.1%

80 69.5

60.2

ECONOMIC INTEGRATION n important goal of ASEAN is to intensify the creation of an AEC (ASEAN Economic Community) by 2015. Under the AEC, ASEAN aims to transform the regional association (composed of 10 member countries) into a single market and production base, and to facilitate the free flow of investment into the ASEAN region.

billion in 2007 . It declined in 2008 to US$60 billion as a result of the global crisis followed by lower figures in 2009 estimated to be as low as US$39 billion. The prospect for 2010 looks more promising. According to the ASEAN Secretariat data the main sources of FDI flows to ASEAN during the years 2006-2008 are, respectively, the European Union, ASEAN, Japan, the US and Cayman Island.

55.0

Others 29%

British Virgin Islands 2.3% Taiwan (ROC) 2.4% China 2.4%

EU 20.6%

Bermuda 2.9%

39.6

Cayman Island 2%

Japan 12.6%

USA 5.3%

35.3

30 Source: ASEAN Secretariat

20 FDI Inflows to ASEAN by sectors, 2008 10

Year

2004

2005

2006

2007

2008

Others (not classified elsewhere) 13.1%

Agriculture, Fishery, & Forestry 0.7% Mining & Quarrying 7.4%

ASEAN Indicators, 2008 Total Population

583.7 million

Total Land Area

4.4 million sq. km.

Total GDP

US$ 1,506.2 billion

GDP Growth

4.4%

Total Trade

US$ 1,710.4 billion

Total Exports

US$ 879.14 bilion

Total Imports

US$ 831.23

Intra-ASEAN Exports

US$ 242.5 billion

Intra-ASEAN Imports

US$ 215.6 billion

Intra-ASEAN Trade

26.8% of ASEAN total trade

FDI Inflows

US$ 60.2 billion

Intra-ASEAN FDI Inflows

US$ 11.1 billion

Source: ASEAN Secretariat

An integrated ASEAN supported with its relatively strong basic fundamentals would be able to bring a number of benefits to the region. ASEAN has a large population of some 584 million people; a GDP of US$1.5 trillion; total trade of US$1.7 trillion; FDI total inflows of US$60 billion, one of the largest investment inflows among the developing countries. ASEAN’s economic integration is expected to bring a number of benefits to ASEAN as follows: • It enhances ASEAN’s attractiveness as an investment destination; at the present time ASEAN’s position is still on the low side compared to China, South-East Europe and Latin America • ASEAN (as a regional “economic entity”) could benefit from the internationalization of business activities and become an important economic player in the global economy • ASEAN could become an important sub-regional entity in the global chain production structure in many industrial areas such as automotive and electronic • It would give an opportunity for investors to establish their production base in an area which is part of a dynamic Asia, the epicenter of the global economy • It would offer the world community an attractive production base coupled with an expanding single market—the third largest market in Asia after China and India FDI INFLOWS Since 2002 FDI flows into ASEAN rose significantly, from US$18 billion in 2002 to $69.9

ASEAN 18.4%

It should be noted that ASEAN has become the second largest source of FDI flows to the ASEAN countries. Intra-ASEAN investment flow is a highly important trend in the development of ASEAN’s economy. ASEAN is not only on the receiving end; it can also be on the supplying side. Singapore and Malaysia have become important investors for the region, including for Indonesia. The largest FDI receiving countries in 2008 are Singapore ($22 billion), Thailand ($9.8 billion), Vietnam ($8.1 billion), Indonesia ($7.9 billion) and Malaysia ($7.3 billion). For the years 2006-2008 Indonesia took only fourth place, which means that the country is not an attractive investment destination. Vietnam has become an important investment destination surpassing Indonesia. FDI inflow to ASEAN is concentrated in the services and manufacturing sectors. The services sector accounted for about 50% of FDI inflows in 2008. The share of manufacturing was about 29%. It must be quite a disappointment for countries like Indonesia and Thailand with large natural resources to see that FDI flows into the primary sector (agriculture, mining and quarrying) have been low. ASEAN POSITION ASEAN’s position in the area of global trade is strong enough. Its position in FDI international flows, however, is still on the weaker side. Much work has still to be done to develop ASEAN to become an attractive investment destination. The largest portion of FDI international flows go to the developed countries, in particular the

EU (European Union) and the US. But flows to the developing countries have increased substantially, from US$275 billion in 2004 (representing 27% of total flows) to US$620.7 billion in 2008 (representing 37%), with the largest share going to Asia, particularly China, ASEAN and India. Among ASEAN countries Singapore is by far the most favorite investment destination. Vietnam, Thailand, Malaysia and Indonesia are in the next group of recipient countries . There are a number of points often mentioned by international observers but also by the ASEAN Secretariat as follows: • Investment flows have proven to be beneficial to ASEAN’s development. According to the ASEAN Secretariat FDI represented about 13% of gross capital formation for ASEAN. FDI stocks accounted for 44% of GDP • There is the need to further enhance domestic and regional sources of investment. Most ASEAN Member States have large current account surpluses • China, South Korea, Japan, Singapore and Malaysia have already become important sources of investment for the Asian region, including for ASEAN and Indonesia • The global investment environment becomes more competitive. Investors strongly prefer to see ASEAN as a single regional market that has more drawing power than individual markets With regard to Indonesia in particular, statistics show that Indonesia is in 4th place in terms of FDI flows to ASEAN (after Singapore, Thailand and Vietnam). Indonesia Current developments suggest that Indonesia’s investment climate has improved considerably. Indonesia is on the road to become one of the top destination countries. However, a number of bottlenecks still exist such as in the area of infrastructure, including in electricity and transport (land

Indonesia Investment Opportunities

Land Area

1,860,360 sq km

Agro-Industry, Fishery, Food, Automotive, Refinery, Steel, Petrochemicals, Shipping, Oleochemicals, Fertilisers, Mining, Textiles, and Textile Products

Population

228.5 million

GDP Growth

6.1%

GDP at Current Price

US$ 511.1 billion

Inflation

11.1%

Exports

US$ 137 billion

Imports

US$ 129.2 billion

Foreign Direct Investment Flows

US$ 7.9 billion

Major Exports

Agriculture products, Manufactured products, Minerals

Major Imports

Consumption Goods, Raw Materials, Capital Goods

Major Trading Partners

Japan, USA, ASEAN, Republic of Korea, China

Major Industries

Food, Paper and Printing, Textiles, Chemicals and Pharmaceuticals, Metal, Machinery, Electronics

Major Investors

Japan, Hong Kong, Taiwan, United Kingdom, Singapore

and sea). It is clear that those serious impediments must be removed soonest. With regard to the AEC (ASEAN Economic Community), there is the impression that not much is known by the general public and the business sector about ASEAN’s integration plans. AEC calls for the free flow

of investment within ASEAN by 2015. If properly handled Indonesia could take full benefit from the proposed scheme especially in the area of investment flows and become an important production base. The writer is former ambassador to the EU.

Services 49.5%

Source: ASEAN Secretariat

Manufacturing 29.1%

The President Post

www.thepresidentpost.com

November 12, 2010 A7

Around Cikarang KOTA JABABEKA:

An Environment-Friendly Township with 15 Thousand Bioporis Around 15,000 bioporis have been created in Kota Jababeka so far. The aim is to encourage residents to support Kota Jababeka as The Green City.

ota Jababeka in Cikarang has become an environmentfriendly township or Eco Friendly Township. This was announced at The Environment Competition Award and Jababeka Sport Week Award Ceremony on Sunday, 17 October 2010. The event took place at Pasar Festival Kota Jababeka. This Environment Competition is an annual routine activity held by Kota Jababeka in collaboration with Forum Komunikasi Masyarakat Cikarang Baru (FMKC). 28 Neighbourhoods from six villages in Cikarang Baru region participated in this year’s competition, which was held from 19 July to 8 August 2010. Participants were assessed on five scoring criteria, name-

ly Safety, Cleanliness, Beauty, Environment Sanitation, and Hospitality. The theme of The 2010 Environment Competition was “Biopori as an Environment Savior”. This was to encourage every residents of Kota Jababeka to create biopori holes in their front yards. Around 15,000 bioporis have been created in Kota Jababeka so far. The aim is to encourage residents to support Kota Jababeka as The Green City. The city management also provides bicycle tracks and a Botanic Garden as well as socializing the advantages of using organic fertilizers. Both events, the Environment Competition and Sport Week, will be held every year to motivate all of Kota Jababeka’s residents to participate in developing their town to become a better place for living.

JABABEKA’S PROPERTY INDEX October - November 2010 No.

SEGMENTS

SIZE - M2 Building

PRICES

Land

RESIDENTIAL

The Veranda Town House

Veranda Deluxe

294

166

Rp. 2,008,000,000

Veranda Corner

306

288

Rp. 2,689,600,000

Simprug Garden

Green Pine

112

Rp. 517,000,000

Yellow Pine

139

Rp. 585,000,000

Golden Pine

136

Rp. 800,800,000

Orchid

Orchid Deret

120

Rp. 266,500,000

Orchid Corner

225

Rp. 382,600,000

Orchid Corner

206

Orchid Corner (Limited)

189

Tropikana Garden

Zelosa - Standard

114

119

Rp. 854,500,000

Axela Standard

159

160

Rp. 1,069,000,000

Axela Standard Plus

159

188

Ortiz - Standard

188

300

Axela - Corner (Land Plot)

228

Zelosa - Corner (Land Plot)

262

Rp. 766,700,000

Ortiz - Corner (Land Plot)

349

Rp. 1,021,500,000

Metropark Condominium Tower A

Deluxe , 2nd fl

27/1 Bdr

Rp. 218,950,000

Deluxe ,3rd fl

27/1 Bdr

Rp. 218,950,000

Deluxe, 5th fl

27/1 Bdr

Rp. 224,500,000

Deluxe , 7th fl

27/1 Bdr

Rp. 257,500,000

Premium, 7th fl

54/2 Bdr

Metropark Condominium Tower B

Deluxe , 2nd fl (view Metro Blvd.)

27/1 Bdr

Rp. 218,950,000

Deluxe, 3rd fl (view Metro Blvd)

27/1 Bdr

Rp. 218,950,000

Deluxe , 5th fl (view JCBD)

27/1 Bdr

Rp. 224,500,000

Premium, 6th fl (view JCBD)

54/2 Bdr

Rp. 462,600,000

Deluxe, 6th fl (view swim. pool)

27/1 Bdr

Rp. 261,900,000

Deluxe , 7th fl (view swim. pool)

27/1 Bdr

Rp. 261,900,000

Pavilion-Exclusive Boarding Houses

Grande-Corner

COMMERCIAL

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

Rp. 3,838,500,000

Commercial B - Module SFB

682

552

Rp. 4,147,000,000

Commercial A - Module Studio

1,229

967

Pavilion Niaga

Block A3

100

Block A2

Ruko Sunter Niaga Mas

Rp. 7,209,500,000

Rp. 575,000,000

100

Rp. 575,000,000

Corner

165

71.5

Rp. 1,025,000,000

Standard

120

Rp. 750,000,000

Standard

120

Standard

120

Ruko Sentra Niaga Square

Standard 1 (4 x 11), 2nd fl

Rp. 508,000,000

Standard 2 (5 x 10), 3rd fl

150

Rp.715/727 Million

Corner (6 x 10) , 3rd fl

180

Rp. 891,000,000

Standard 1(4 x 11) , 2nd fl

Rp. 495,000,000

Standard 2 (5 x 10) , 3rd fl

150

Rp.715/727 Million

Corner (6x10) , 3rd fl

180

INDUSTRIAL

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

Rp. 891,000,000

SIZE - M2

Land

Factory

Office

Grand Standard Factory Building

2000-3500

830

115

start from Rp.4Bn

New 3-IN-1 Factory Building

576-1260

304

124

start from Rp.1,8Bn

Comercial Office Building

500

356

Rp. 1,700,000,000

Standard Office Building

425

160

Rp. 1,200,000,000

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

A8 November 12, 2010

www.thepresidentpost.com

Education The 5th Graduation Ceremony of President University By Jeannifer Filly Sumayku

resident University held the 5th Graduation Ceremony at President University Campus, Cikarang. There were 188 graduates from six faculties. This year’s theme was “The Quality of Leadership at Globalization Era in Education and Character-Nation Building”. President University has successfully produced graduates that have integrity and high competence. Rector of PU Prof. Dr. Ermaya Suradinata stated that 90% of all graduates are already working, while the 10% are going to continue their study. “We produce graduates who have jobs, not graduates who seek jobs.” President University provides its graduates with applied sciences. “Our curriculum is based on

research of the need of industry for qualified and ready to work human resources,” added Ermaya. 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. President University has a multicultural environment as students come from all over Indonesia and many countries such as China, Vietnam, South Korea, Laos, Vietnam, Venezuela, Somalia, the Philippines and others. All classes at PU are conducted in English to ensure all graduates will be able to interact well in the international community. (JFS/ TPP)

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Please transfer to: Bank OCBC NISP Capitol Cikarang Branch 101.010.00016.5 Account Name PT. Sarana Pratama Pengembangan Kota

Business BUSINESS BRIEFS BNI to conduct roadshow in four countries PT Bank BNI Tbk. plans to conduct a roadshow in Singapore, Hong Kong, London and New York early next month in connection with its rights issue program. “Starting next month (November) we will conduct a roadshow in Asia, Europe and the US,” its president director Gatot Suwondo, said here on Wednesday. Gatot Suwondo He said the roadshow was done to attract investors with regard to the bank`s rights issue plan, scheduled to be realized early in December 2010. Bank BNI plans to release 3.3 billion shares worth around Rp10 trillion.

Intiland`s profit surges to Rp293 b Publicly-listed property developer PT Intiland Development Tbk said its net profit in the first nine months of 2010 surged to Rp293.07 billion, more than a 19-fold increase from the same period last year. Operating profit in the third quarter of 2010 soared 518 percent to Rp256.41 billion from Rp41.46 billion in the corresponding period last year, the company said in a press statement. “We are on the clear track to achieve profit target in the future. The thirdquarter net profit of Rp293.07 billion accords with our plan and target. And we are optimistic we can achieve the profit target for 2010,” he said. Intiland is mainly engaged in the construction of residential townships, apartments, office buildings and industrial estate. It is also engaged in the operation of hotels, serviced residences, resorts and sports club.

BCA`s net profit up 20 percent in Q3 PT Bank Central Asia Tbk. (BCA) booked a net profit of Rp6.1 trillion in the third quarter this year, thanks to credit growth in all segments and an increasing balance in the third party funds` transactional accounts. “Supported by a healthy balance, BCA gained from Indonesia`s strong economic growth. A discipline implementation of quality growth strategy has produced positive results placing the bank in the right direction to capture business opportunities in the future,” the bank`s president director, D.E. Soetijoso, said here last month. The value of the net profit was 20 percent higher (year-on-year) compared to the same period last year which was recorded at Rp5.1 trillion. BCA meanwhile was also able to maintain the stability of its income from interests and noninterests at Rp15.1 trillion in the first nine months of 2010, compared to Rp14.5 trillion made in the same period last year.

INVESTOR SUMMIT 2010

The President Post

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Display until December 12, 2010 /// N0. 18

B Foto: www.presidensby.info/Abror

RI, China Firms Sign Pacts in Energy, Mineral Sectors The cooperation agreements were signed in the presence of President Susilo Bambang Yudhoyono.

number of Indonesian and Chinese companies on Monday in Shanghai, China, signed seven agreements on cooperation in the energy and mineral resources sectors. Energy and Mineral Resources Ministry (ESDM) spokesman Sutisna Prawira said in a press statement last month the cooperation agreements were signed in the presence of President Susilo Bambang Yudhoyono. Sutisna said the agreements were signed in conjunction with a China-Indonesia Business Forum which was attended by more than 500 participants from government circles, industrial associations, and business-

men in various sectors from Indonesia and China.

PT Indonesia Mitra Jaya and Super Power Int Holding.

According to Sutisna, the seven cooperation agreements were on the sale of marine lubricants Indonesia`s PT Pertamina and China`s Shanghai Know-How Marine Equipment, bauxite potential development between PT Aneka Tambang and Hangzhou Jinjiang Group, seamless pipe factory development between PT Waja Sekawan Prima and Tian Yi Seamless Steel Tube, upstream oil and gas operations between PT Samudera Energy and CNOOC/Husky Oil at Marura Strait Block, nickel smelting factory construction in Southeast Sulawesi between PT Barong Baragas Energy and Jinchuan Group, nickel exploration and development between PT Bumi Makmur Selaras and Hanking Industrial Group, and nickel integrated development in Maluku`s Seram Island between

In addition to the seven cooperation agreements, memorandums of understanding in other sectors were also signed before President Yudhoyono. On the occasion President Yudhoyono was accompanied among others by Coordinating Minister for Economic Affairs Hatta Rajasa, Trade Minister Mari Elka Pangestu, Energy and Mineral Resources Minister Darwin Saleh, Industry Minister MS Hidayat, Foreign Affairs Minister Marty Natalegawa, and Minister/State Secretary Sudi Silalahi. BNI facilitates RI-China trade Bank BNI last month signed a cooperation agreement on Indonesia-China trade transactions through its electronic service BNI Smart Trade, it said in a press statement here on Monday.

INVESTOR SUMMIT

President SBY at the China-Indonesia Business Forum at Shangri-La Hotel Pudong, Shanghai, China

The cooperation was marked by the signing of a memorandum of understanding on IndonesiaChina trade transactions through BNI Smart Trade service by three parties, namely Bank BNI, PT Ungaran Sari Garment and Jiangsu Fanski Linen Spinning & Weaving Mill Co. Ltd. The signing of the document was witnessed by President Susilo Bambang Yudhyono and ministers of the United Indonesia Cabinet on the sidelines of their visit to the Indonesian Pavilion in the

World Expo Shanghai (WES) 2010, Shanghai, China. In WES 2010 BNI serves as the partner of the Indonesia Trade Ministry and as an official Bank of Indonesian Pavilion WES 2010. BNI Smart Trade is a service product developed by BNI where customers could anywhere and any time carry out trade transactions (export/import) through an e-delivery service channel application.

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and Capital Market Expo 2010

BAPEPAM-LK Departemen Keuangan

The Ritz-Carlton Pacific Place, Jakarta | 10 and 11 November 2010

FREE REGISTRATION - Limited Seats, REGISTER NOW!

CAPITAL MARKETS: GATEWAY TO A BETTER FUTURE

For the Seminar and Presentation Class, please complete the form below and send it back to the Secretariat by fax/email. Re-registration and badge can be obtained on 9 November 2010 at 16:00 - 21:00 at the Ballroom of the Ritz-Carlton Pacific Place, Jakarta.

PROGRAM Wednesday, 10 November 2010 07:00 - 08:50 08:50 - 09:10 09:10 - 10:10 10:10 - 10:40 10:40 - 11:00 11:00 - 12:00 12:00 - 13:00 13:00 - 14:00 14:00 - 15:00

15:00 - 15:15 15:15 - 16:15

16:15 - 17:15

Registration Report by Chairman of Indonesia Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK), Mr. A. Fuad Rahmany Opening Speech by the Minister of Finance of the Republic of Indonesia, Mr. Agus Martowardojo A Visit to the Capital Market Expo 2010 by the Minister of Finance of the Republic of Indonesia, Mr. Agus Martowardojo Coffee Break Session I, Presentation by the Minister of State Owned Enterprises of the Republic of Indonesia, Mr. Mustafa Abubakar Lunch Session II, Presentation by Senior Economist, Mr. Fauzi Ichsan and Investment Practitioner, Mr. Eko Pratomo LISTED COMPANY I (Room: Ballroom 1A) PT Astra Agro Lestari Tbk

LISTED COMPANY II (Room: Ballroom 1B) PT Adhi Karya (Persero) Tbk

LISTED COMPANY III (Room: Ballroom 1C) PT Telekomunikasi Indonesia (Persero) Tbk

LISTED COMPANY IV (Room: Ballroom 3C) PT Bank Danamon Indonesia Tbk

Coffee Break LISTED COMPANY V (Room: Ballroom 1A) PT Indocement Tunggal Prakasa Tbk

LISTED COMPANY VI (Room: Ballroom 1B) PT Jasa Marga (Persero) Tbk

LISTED COMPANY VII (Room: Ballroom 1C) PT Unilever Tbk

LISTED COMPANY VIII (Room: Ballroom 3C) PT Medco Energi International Tbk

LISTED COMPANY IX (Room: Ballroom 1A) PT Total Bangun Persada Tbk

LISTED COMPANY X (Room: Ballroom 1B) PT Bank Rakyat Indonesia Tbk

LISTED COMPANY XI (Room: Ballroom 1C) PT Adaro Energy Tbk

LISTED COMPANY XII (Room: Ballroom 3C) PT Gajah Tunggal Tbk

10:00 - 10:15 10:15 - 11:15 11:15 - 12:15 12:15 - 13:00 13:00 - 14:00

14:00 - 15:00

LISTED COMPANY I

LISTED COMPANY II

LISTED COMPANY III

LISTED COMPANY IV

15:15 - 16:15

LISTED COMPANY V

LISTED COMPANY VI

LISTED COMPANY VII

LISTED COMPANY VIII

16:15 - 17:15

LISTED COMPANY IX

LISTED COMPANY X

LISTED COMPANY XI

LISTED COMPANY XII

Thursday, 11 November 2010 13:00 - 14:00

LISTED COMPANY XIII

LISTED COMPANY XIV

LISTED COMPANY XV

LISTED COMPANY XVI

14:00 - 15:00

LISTED COMPANY XVII

LISTED COMPANY XVIII

LISTED COMPANY XIX

LISTED COMPANY XX

15:15 - 16:15

LISTED COMPANY XXI

LISTED COMPANY XXII

LISTED COMPANY XXIII

LISTED COMPANY XXIV

16:15 - 17:15

LISTED COMPANY XXV

LISTED COMPANY XXVI

LISTED COMPANY XXVII

LISTED COMPANY XXVIII

Please mark with ( X ) for the selected session, IT IS NOT ALLOWED TO SELECT MORE THAN ONE SESSION TO ATTEND AT THE SAME TIME

Name

Occupation

Home/Company : Address

Thursday, 11 November 2010 07:00 - 09:00 09:00 - 10:00

Wednesday, 10 November 2010

Registration Session III, Presentation by the Coordinating Minister for the Economy of the Republic of Indonesia, Mr. Hatta Rajasa *) Coffee Break Session IV, Presentation by Chairman of Bapepam-LK, Mr. A. Fuad Rahmany Session V, Investor Success Story by Mr. Trihatma K. Haliman (Agung Podomoro Group) Lunch LISTED COMPANY XIII (Room: Ballroom 1A) PT Berau Coal Energy Tbk

LISTED COMPANY XIV (Room: Ballroom 1B) PT Bakrieland Development Tbk

LISTED COMPANY XV (Room: Ballroom 1C) PT Bank Tabungan Negara (Persero) Tbk

LISTED COMPANY XVI (Room: Ballroom 3C) PT Tambang Batubara Bukit Asam (Persero) Tbk

LISTED COMPANY XVII (Room: Ballroom 1A) PT Lippo Karawaci Tbk

LISTED COMPANY XVIII (Room: Ballroom 1B) PT Aneka Tambang (Persero) Tbk

LISTED COMPANY XIX (Room: Ballroom 1C) PT Bakrie Telecom Tbk

LISTED COMPANY XX (Room: Ballroom 3C) PT Bakrie & Brothers Tbk

LISTED COMPANY XXI (Room: Ballroom 1A) PT Bank Bukopin Tbk

LISTED COMPANY XXII (Room: Ballroom 1B) PT Timah Tbk

LISTED COMPANY XXIII (Room: Ballroom 1C) PT Kalbe Farma Tbk

LISTED COMPANY XXIV (Room: Ballroom 3C) PT Gozco Plantations Tbk

LISTED COMPANY XXV (Room: Ballroom 1A) PT Indofood Sukses Makmur Tbk

LISTED COMPANY XXVI (Room: Ballroom 1B) PT Bank Central Asia Tbk

LISTED COMPANY XXVII (Room: Ballroom 1C) PT Bumi Resources Tbk

LISTED COMPANY XXVIII (Room: Ballroom 3C) PT Wijaya Karya Tbk

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14:00 - 15:00

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Coffee Break

16:15 - 17:15

*) upon confirmation

Visit Capital Market Expo 2010 !! OPEN FOR PUBLIC and FREE REGISTRATION Get DOORPRIZE valued at millions of Rupiah The Secretariat of Investor Summit and Capital Market Expo 2010 Pacto Convex Ltd: Phone. 021-5705800 ext. 428/425/430; 021-5735538 (direct line) | Fax : 021-5705798 Email: registrasi@investor-summit2010.com; expo@investor-summit2010.com or sekretariat@investor-summit2010.com PT Bursa Efek Indonesia: Indonesia Stock Exchange Building - Tower I, 6th floor, Jl. Jend.Sudirman Kav. 52-53, Jakarta 12190 Website: www.investor-summit2010.com

The President Post

B2 November 12, 2010

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Business Lumbung Energi to raise $400m through IPO Publicly-listed hard coking coal producer PT Borneo Lumbung Energi & Metal (BORN) aims to raise US$400 million in funds through an initial public offering (IPO) thid month. The company plans to float 3.317 billion registered ordinary shares or 20 percent of subscribed capital and paid-up capital. The shares will be offered at Rp980-Rp1,280 each with a nominal value of Rp100 per share.

One Million Connections: Worker is fixing Sutet tower in order to celebrate Gerakan Sehari Sejuta Sambungan on National Electricity Day. The movement was intended to terminate the waiting list of new customer.

Lumbung Energi Director Samin Tan said in a public exposure last month 50 percent of proceeds from the issuance of shares would be used to repay debts incured by the company and its subsidiary. The company currently owes Rp600 billion to PT Sinarmas Sekuritas and its subsidiary owes Rp670 billion to PT Bank CIMB Niaga Tbk and Rp685 billion to RZB Bank. The other 35 percent would be used to finance business expansion, including development of coal mining infrastructure facilities, 13 percent to develop coal reserves and resources and 2 percent to strengthen working capital and investment, he said. The shares will be offered to the public on Nov 18-22 and listed at the Indonesia Stock Exchange (BEI) on Nov 26. The company posted a net profit of Rp20.6 billion in the first semester of 2010. As per June 2010, its assets reached Rp4.9 trillion compared to Rp4.3 trillion in the same period last year.

Photo: The President Post/Nandi Nanti

Sinarmas invests US$1.2 b in China

PT Angkasa Pura to Expand Five Airports

T Angkasa Pura I plans to expand five airports in the country in the next two or three years with an investment reaching Rp4 trillion, its president director, Tomy Sutomo said here last month. “The airports to be expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta, Juanda in Surabaya and Ahmad Yani in Semarang,” he said after signing a collective labor agree-

ment for 2010-2012 between the company`s board of directors and employee association and union. He said the expansion was needed to increase service in the airports. In general, he said, the airports are already overcapacity making their service to decline. Citing an example he referred to the case of Ngurah Rai airport in Bali which was initially designed for accomodating 1.5 million passengers a year but was now accomodating more than 9.5 million passengers a year consisting of 4.5 domestic and five

foreign passengers. He said the first to be expanded would be Ngurah Rai early next year. The enterprises ministry as the shareholder and the ministry of transportation have already given the permits, he said. He said the documents for bidding some works had already been prepared and hopefully the project would all be completed in 2013. He said for Ngurah Rai around Rp2 trillion would be needed, Rp1.25 trillion of it from loans

and the rest from the company`s internal cash. He said the company would cooperate with the Bali provincial government to help clear 129,000 square meters of land needed for the project. The company expected its income this year to reach Rp2.361 trillion with a net profit of around Rp500 billion. Until the third quarter this year, the state-owned airport operator company for the eastern region already earned Rp1.79 trillion.

“

“The airports to be expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta, Juanda in Surabaya and Ahmad Yani in Semarang.” Tomy Sutomo President Director PT. Angkasa Pura I

Commodity Price Hikes Raise PT Antam’s Revenue

RI Noodles a Big Hit in Africa, Sales Reach 9b Packs per Annum

State-owned PT Aneka Tambang`s revenue grew above 10 percent until September this year from Rp6.26 trillion recorded in September 2009. “The revenue growth is driven by mining commodity price hikes in the market,” the company`s president director Alwinsyah Loebis said here last month. He said the net profit was still being audited. “It is all still being audited. What is clear is our income has risen double-digit or above 10 percent from September last year,” he said. Based upon the revenue in Sep-

Indonesia’s instant noodle sale in Africa reaches 9 billion packs per annum. Indonesia’s instant noodles are a big hit in the African continent, said Indonesian Flour Producers Association (Aptindo) Executive Director Ratna Sari Loppies. “Africans can consume up to nine packs per day and instant noodles are one of children’s favorite foods there,” said Ratna. “We should be proud,” she added. Ratna explained that the huge instant noodle mar-

tember 2009 the company`s revenue in the third quarter this year would be around Rp7 trillion. The company`s ferronickel production meanwhile reached 14,045 tons or 76 percent of this year`s target. Nickel ore production meanwhile reached 4.96 million metric tons or around 81 percent of the target. Gold production reached 1,884 kilograms or around 60 percent of the target, silver 14,058 kilograms (60 percent of the target), bauxit 162,307 metric tons (27 percent of the target). Alwinsyah said in 2010 the company allocated Rp2.35 tril-

lion for capital expenditures. Of the total, Rp435.53 billion would be for new investments, Rp1.7 trillion for development and Rp208.3 billion for postponed investments. He said the company would also allocate US$30 million for financing the acquisition of gold and coal mines. “We are still calculating the capital expenditures that have been absorbed until September 2010,” he said. Regarding capital expenditures for 2011 he said they would be bigger than for 2010, without giving numbers.

ket in Africa is evident with Indofood’s decision to open two instant noodle production facilities for its Indomie brand in the African continent, namely in Egypt and Nigeria in 1995. “Initially it was only half a million packs per year,” she said. Meanwhile, Bogasari CEO Franciscus Welirang said Indomie’s sales in Africa was unaffected by the recent case in Taiwan when the products were pulled out from market shelves for allegedly containing dangerous substance. Sales in the country also remained stable, said Franciscus.

The Sinarmas Group is taking part in the Economic Development Zone of Qinzhon port, China, with an investment of US$1.2 billion, a Chinese executive said. Deputy Director for the Administration Committee of the Economic Development Zone, Wei Peng, said here last month that the Sinarmas Group invested in paper industry. Wei said that APP of the Sinarmas Group had now produced 600,000 tons of paper and 1,800,000 tons of pulp per annum. It would be further stepped up to 3.1 million tons per annum. In the meantime, the number of Chinese businessmen who did business in Indonesia, according to Kiki Barki, who is chairman of the Indonesian Chamber of Commerce and Industry for China affairs, is about 600 persons. But the scales of their businesses were still small and medium, not yet classified as large or giant such as the investment of the Sinarmas Group in China. Kiki, in a China-ASEAN business forum, told about 500 Chinese businessmen to invest in Indonesia`s potential coal sector which could be tapped for hundreds of years while China, which has a population of about 1.3 billion, badly needed power generators to fuel its economy.

Astra Agro plans to increase production capacity Publicly-listed oil palm plantation company PT Astra Agro Lestari Tbk plans to increase the production capacity of its crude palm oil processing plants this year to 1,125 tons/hour from 985 tons/hour previously. “The production capacity will increase in 2011 or 2012,” PT Astra Agro Lestari Deputy President Director Tonny Hermawan said here on last month. With the current production capacity, the company was overwhelmed to process CPO particularly during the harvest time, he said. He said CPO must be processed no later than 24 hours before it began to decay. Therefore, he added, the company decided to build a CPO processing plant in Central Kalimantan and another in East Kalimantan with a capacity of 30-40 tons/hour each. The construction of CPO processing plants would cost Rp70 billion-Rp90 billion each, he said. The company has set itself the target of producing 1.06 million tons of palm oil this year, or about the same as last year`s. He said the company`s production in the first semester of 2010 fell from a year earlier. But the production would be raised in the remaining three months of this year. The company`s CPO production reached 90 thousand tons in July, 106 thousand tons in August and 102 thousand tons in September this year.

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November 12, 2010 B3

Investment INVESTMENT BRIEFS Seven foreign investors to build cocoa plants Seven foreign investors, namrly ADM Cocoa and Olam International of Singapore, Guanchong Cocoa of Malaysia, Cargill and Mars of the United States, Armajaro of Britan, and Ferrero of Italy, have expressed keen interest in building cocoa processing plants in Indonesia following the imposition of duties on cocoa exports as of April 1, 2010, says Director General of Agribusiness at the Industry Ministry Benny Wachjudi recently. “They have asked for clarification on the possibility of the government reviewing the imposition of duties on cocoa exports,” he said. Benny said Guanchong Cocoa was likely to build a cocoa processing plant with an annual capacity of 50 thousand tons early next year. In addition, he said local cocoa producer PT Bumitangerang Mesindotama would also double the production capacity of its plant in Tangerang, Banten province, to 80 thousand tons per year. The expansion project which would cost an estimated US$40 million and would be completed in eight months` time, he said.

Stock Registration: Brokers doing the stock commerce at Indonesia Stock Exchange. ISE was urged to postpone the registration of PT Krakatau Steel initial public offering (IPO) because the company is still in civil lawsuit at the court.

BKPM to assign more staff at overseas offices The Capital Investment Coordinating Agency (BKPM) will assign more staff at its overseas offices to ease their increasing workload in attracting investment, a spokesman said. “We will strengthen the human resources at several of our overseas offices,” BKPM Deputy Chief M Yus`an said after a working meeting with the House of Representatives (DPR)`s Commission VI, here last month. The agency currently has representative offices in London (Britain), Los Angeles (USA), Sydney (Australia) and Tokyo (Japan). As many as 30 new BKPM staff were now being prepared for assignment at the agency`s overseas posts. BKPM had set itself the target of attracting Rp 300 trillion worth of foreign investment in 2010.

Photo: The President Post/Nandi Nanti

Astra to Expand into Three Other Sectors

Vietnamese investors explore opportunities in Babel Investors from Vietnam have explored a location in Bangka Selatan district in BangkaBelitung (Babel) province to invest in the fisheries sector. “The investors from Vietnam intend to invest in the fisheries sector and have visited Bangka Selatan district to obtain first hand information about suitable locations for their investment,” Babel Governor Eko Maulana Ali said here last month. He said the investors had visited several locations, among others the Sadai area in Bangka Selatan where they would like to invest Eko Maulana Ali in the fisheries sector. “We welcome the good intention of the Vietnamese investors to invest here and we hope a memorandum of understanding (MoU) between Indonesian government and Vietnamese minister for maritime affairs and fisheries on the investment will be signed at the end of October this year,” the governor said.

Astra plans to expand its operations by also engaging in heavy-duty mining equipment, agribusiness and infrastructure development.

T Astra International said the automotive industry would remain its backbone while implementing a plan to expand into three other sectors. “We will not leave the automotive industry as it is our backbone,” the company`s president director, Prijono

Sugiarto, said here last month. Astra plans to expand its operations by also engaging in heavy-duty mining equipment, agribusiness and infrastructure development. Prijono said its automotive industry accounted for 55 percent of Astra`s overall income. However, Astra also wished to operate in other sectors such as

Textile firms to spend Rp1.99 t on renovating machinery A total of 159 textile and textile product companies are investing Rp1.99 trillion in the renovation of their production machineries, a deputy minister said. “We are providing a discount price for companies restructuring their machines worth Rp181.74 billion,” Deputy Industry Minister Alex Retraubun said here last month. The number of applicants that have been discussed by the technical team has reached 124 firms, consisting of 53 firms in the direct type and 71 others are in the normal type. He said that 100 companies had obtained agreement letters to receive the assistance (SPPB), of which 38 were in the direct type worth Rp28.99 billion with an investment of rp383.56 billion and 62 others were in the normal type with assistance worth Rp75.92 billion and investment valued at Rp942.25 billion. The deputy minister said that the additional investment would increase additional workers by 13,000 persons in the textile and textile product fields. In the meantime, production capacity would also increase by about 17-28 percent and productivity by 7-17 percent while the use of energy could also be cut by 18 percent, he said.

dullah expressed appreciation to Indonesia`s efforts in supporting the handling of climate change in the world by proposing the use of renewable energy sources. Earlier, President Susilo Bambang Yudhoyono has said Indonesia aims to become the world`s largest geothermal energy user. Indonesia now ranked third in terms of geothermal energy consumption after the United States and the Philippines which used geothermal energy to generate 4,000 MW and 2,000 MW of electricity respectively. “Indonesia now only uses 4.2 percent of its geothermal reserves to generate 1,100 MW of electricity. Indonesia`s geothermal reserves account for 40 percent of the global geothermal potentials,” he said. The head of state said the gov-

Astra has so far held the biggest market share of cars in the ASEAN region and of motorcycles in the country. He said this year was the right time for Astra to grow despite a

little decline in sales recently due to less working days caused by holidays. “We believe the target will not be disappointing for OctoberDecember as demand for motor vehicles, heavy equipment and CPO is increasing,” he said. He said total demand for cars in the country reached 700,000 to 740,000 units and Astra`s market share in the segment reached 40 percent. Demand for motorcycles meanwhile reaches 7.2 million with Astra controlling 47 percent of the market, heavy equipment 12,000 units with Astra taking

Prijono Sugiarto President Director PT Astra International

46 percent of the market. “Palmoil production is expected to be the same as last year recording at 1,080,000 tons this year,” he said.

RI Woos US Oil, Gas Investors The US is the seventh biggest investor in Indonesia with most investment put in the oil and gas sector. Indonesia is currently conducting a roadshow in Houston, the US, in an effort to invite US oil and gas companies to invest more in the country. “Indonesia is asking US businesses especially oil and gas companies in the South to invest more in Indone-

sia,” Indonesian Consul in Houston, Al Busyro Basnur said in a written statement received by ANTARA News here recently. He said the US is the seventh biggest investor in Indonesia with most investment put in the oil and gas sector. In Houston meanwhile there are around 5,000 companies op-

UAE Shows Interest in Geothermal Sector United Arab Emirates (UAE) is interested to invest in Indonesia`s geothermal industry, Foreign Affairs Minister Marty Natalegawa said here lastmonth. “Indonesia has a huge potential to be the world`s largest geothermal energy user while UAE as chairman of the International Renewable Energy Agency is willing to promote the use of environmentally friendly energy to the world,” the minister said after meeting his counterpart from UAE, Sheikh Abdullah bin Zayed Al Nahyan, at his office in Central Jakarta. The minister added UAE was also interested in investment in other sectors such as infrastructure, agriculture and tourism. Meanwhile, Minister Ab-

heavy-duty mining equipment industry, agribusiness and infrastrucutre development. “We already built the Tangerang-Merak, Kinciran-Serpong toll roads and a drinking water project in cooperation with Paljaya,” he said. He said he hoped other sectors besides automotive that the company would focus would be able to grow.

ernment had made a number of policies on the development of geothermal energy as contained in the road-map on the development of the sector in the 20042025 period. “We have set ourselves a target of 5 percent of the national energy needs in 2025 from geothermal energy,” he said. To achieve the target, the government had launched a number of projects including four projects between state electricity company PT PLN and PT Pertamina Geothermal Energy for the development of geothermal power plants in Central Java, North Sumatra and West Lampung using World Bank loans, he said. The projects which would cost US$8.6 billion were expected to generate 2,885 MW of electricity to overcome the current power shortages which reached 4,900

MW, he said. He said the projects were also expected to reduce carbon dioxide emissions by up to 17.3 million tons per year, he said. The president said the development of geothermal energy in Indonesia would have a small impact on national environment because the country had adequate technology and human resources for the purpose. The government has set itself a target of attracting around US$12 billion in new investment for the geothermal sector and a geothermal energy production capacity of 3,977 megawatts (MW) as part of phase II of its 10,000 MW capacity power development project.

erating in the sector, he said. The roadshow is organized by the ministry of energy and mineral resources in cooperation with the Indonesian consulate general in Houston, state-owned oil/ gas company Pertamina, Greater Houston Partnership, the US Trade Department and Arnold & Knoblock Law Firm. More than 80 invitees consisting of CEOs and executives from around 60 small and medium companies operating in the oil, gas, IT, mining and construction sectors attended the promo-

tion forum staged at the Indonesian Chamber of Commerce and Industry office in Houston last month. The director of commercial service of the Houston chapter of the US Trade Department, Duaine Priestley, said on the occasion that Indonesia is one of the emerging global economic powerhouses. Priestley said in every briefing to US businessmen, the US Trade Department had always mentioned Indonesia as an ex-

port and investment target and a potential source due among others to its fast economic growth. Besides a roadshow the Indonesian delegation had also held business meetings with several oil and gas company executives such as from Marathon, Anadarko, Murphy Oil, Tradewind and Challenger. The delegation members had also become resource persons at a discussion in Southeast Asia Petroleum Exploration Society in their monthly meeting.

South Sumatra Target of Dubai Money Two companies from Dubai are interested in investing in coal mining and power generation and prepared to sink about 0.5 billion US dollars in eventual projects. Two Dubai companies, Salam Investments and Mas ClearSight Investment Bank, plan to invest in the energy sector in South Sumatra, an Indonesian official said. “The two companies from Dubai are interested in investing in coal mining and power generation and prepared to sink about 0.5 billion US dollars in eventual projects,” Mansyur Pangeran, Indonesian consul general in Dubai, told ANTARA here on recently. Pangeran said he had accompanied Abdelhakim Mosleh of Salam Invest-

ments and Senior Vice President of Mas Clear Sight Investment Bank, Mujitaba Sarfaraz, on a business mission to the capital city of South Sumatra province, Palembang, recently. In Palembang, they met with the head of the province`s regional coordinating agency for investment (BKPMD) as well as with officials representing coal mining and power plant sectors. The two Dubai businessmen got comprehensive information on those sectors, including aspects related to permit issuance, locations for coal mining and power plant and the supporting infrastructures.

Pangeran said after the visit to Palembang they also met with officials of the central investment coordinating agency (BKPM) and Indonesia power company PT PLN in Jakarta for further talks on their plan to invest in South Sumatra. In accordance with the regulation for foreign investments, Pangeran added, the two Dubai businessmen sought data on Indonesian companies, state-owned or provincial governmentowned companies, that will be made partners in the investments.

The President Post

B4 November 12, 2010

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Property Office Sector Shows Strongest Performance

T Cushman & Wakefield Indonesia, a leading international property consultant, has released its latest research publication, Marketbeat Q3-2010, which analyses the Jakarta Property Market in various sectors, including offices, condominiums, apartments, shopping centres, and industrials. Highlights: ECONOMY All general economic indicators showed an improvement trend over the 3rd quarter 2010. This definitely will bring positive impacts on property industry, including demands for property. The GDP of Indonesia continued to show positive growth and is estimated to reach YoY growth of 6.0%. Rupiah exchange rate appreciated by 1.5% against US$ and the stock market continued to show favorable trend during the 3rd quarter 2010.

Meanwhile, YoY inflation rate has surpassed its targeted figure and reached 5.8% due to the Ramadhan and long holiday season. After six consecutive quarters of downward trend, the SBI 1-month and 3-months rates increased in the 3rd quarter 2010 to 6.5% and 6.7%, respectively. MARKET ACTIVITIES All property market sectors experienced better performance during the 3rd quarter 2010. Offices Leasing inquiries and transactions in the office market remained positive, dominated by existing tenants seeking for relocation and expansion space including large transactions such as 5,800 sqm in Barclays House for Bank Mutiara office relocation. A total net take-up of 57,400 sq.m was recorded during the 3rd quarter 2010. With this takeup, the total absorption of office space within the Jakarta

CBD in the first nine months of 2010 reached 153,700 sq.m, 40% higher than the full year take-up in 2009 of 109,600 sq.m. During July to September, many buildings made adjustments to their service charge levels. These adjustments occurred due to the increment of electrical tariff started from October 2010. Few buildings that had reached above 90% occupancy level were observed have increased their base rental rate in this quarter. In Rupiah terms, the average gross rental increased by 1.1% to Rp.144,760 per sq.m per month, compared to Rp143,100 per sq.m per month in the previous quarter. Condominium Sales Activity of Jakarta condominium market during the 3rd quarter 2010 increased modestly. Ramadhan month and Idul Fitri celebration in August-September 2010 more or less affect the sales activities as some potential buyer hold their decision until the Idul Fitri celebration. Net take-up of both existing and proposed condominium in Greater Jakarta increased by about 62%. Upper-middle segments (with price between Rp.10-Rp.15 million per sqm) recorded the highest pre-sales rate of about 61.1%.

The additional supply in the Jakarta condominium market came from the completion of Tower A of Gandaria Height and Tower A of Centro City. The completion of Cibubur Village also added the number of completed low-cost condominium projects (with price of below Rp.7 million per sqm). Around 2,445 units from 4 projects were launched during the review quarter. Apartment Leasing activities in the 3rd quarter 2010 mostly came from the short term lease in serviced apartment and purpose-built rental apartment. The total occupancy rate of Jakarta rental apartment in the 3rd quarter 2010 was increased to 66.2%. The market also saw the launch of a proposed condominium hotel project, Aston D’Batavia, in Menteng area. Shopping Center Leasing activites of Jakarta retail market is also very active. Many retailers opened their new outlets, capturing the moment of Ramadhan month and Idul Fitri celebration in August-September 2010 including the first outlet of Lotte Mart of approximately 9,400 sqm was opened in Gandaria City during the reviewed

quarter. There were two retail centers completed in the 3rd quarter 2010, namely Gandaria City, a one-stop retail center for lease in South Jakarta, and the 3-lower storey of Tanah Abang Blok B, a strata-title retail center in Central Jakarta. Industrial Greater Jakarta Industrial market continued to show very strong demand in the third quarter 2010 with total net take-up of over 110 Ha, increased by about 13% from that in the previous quarter. On annual basis, the quarterly net demand growth was also very strong, increasing by almost 3.5 times from that of the same quarter last year. Following the growth in demand, new supply of almost 500-Ha entered the market from 3 prominent estates in Bekasi and Karawang areas. MARKET OUTLOOK The demand of all property market sectors will continue to grow until at the end of 2010. The annual absorption in the CBD Jakarta office market is expected to double from the last year figure and the occupancy rate is projected to stable at 85% at the end of 2010. As traffic jams in Jakarta worsen, condominium living will in-

creasingly become one of the solutions for the problem. Increasing demand for units in close proximity to the work places is therefore expected throughout the next few periods. Short term leases such as daily and weekly will still be more favorable and may boost the occupancy rate in the serviced apartment and purpose-built rental apartment in certain period. As the population in Jakarta is still prospective in terms of number and wealth distribution, the Jakarta retail market will see further new foreign retailers opening new outlets. F&B retailers are expected to continue dominating the leasing transaction. With the continuing positive market sentiment, the industrial market will remain strong throughout the year. With the un-readiness of new supply, for immediate construction and the increasingly limited good quality stock, land sales price is expected to increase in the short term. For further information, please contact: MEDIA CONTACT INDONESIA: Dharmesti Sindhunatha Direct telephone: + (62) 21 25509510 E-mail: dharmesti.s@ap.cushwake.com

About Cushman & Wakefield Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 60 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, residential, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www. cushmanwakefield.com.

Indonesia Remains Attractive to Foreign Retailers By Jeannifer Fily Sumayku

• Hong Kong’s Causeway Bay is still the most expensive in Asia Pacific • New York’s Fifth Avenue remains the world’s most expensive retail address • London’s New Bond Street overtakes Paris’s Avenue des Champs-Elysées as Europe’s most expensive

The increasing interest from new international brands to enter Jakarta, particularly anchor tenants such as department store and hypermarket, confirms the attractiveness of Indonesia as one of the retail expansion targets. Despite the fair positive economic growth of the country, Indonesia’s large population of 237 million people do give very promising opportunities to retailers,” said Lini Djafar, Executive Director, Retail, Cushman & Wakefield Indonesia. She added: “Most middle-class brands and food and beverage retailers are doing very well with the majority of them are planning for quite aggressive expansion in the coming 12 months”. The CBD area in Jakarta, Indonesia, meanwhile moved up from rank 47 in 2009 to rank 38 in 2010, said Arief Rahardjo, Associate Director, Advisory Group, Cushman & Wakefield Indonesia. “Although, as shown in the Main Street Across the World publication, on a YoY comparison of US Dollar/sq.ft/year average rental rate for Jakarta primary location CBD retail increased by 12%, this was largely due to the strengthening of the Rupiah against the US Dollar (from Rp.10,210 to Rp.9,055 per US$ over the 12 month period,” he went on to say. “In terms of local currency as of June 2010, the average rental rate was recorded at Rp.948,600 per sqm per month for specialty shop units at premium locations on the ground floor, a relatively stable or slightly decrease of -0.7% from the last year’s figure.” Most of the world’s top retail

locations have remained resilient during the last twelve months, with Latin America and Asia-Pacific showing the most positive rental growth, according to Cushman & Wakefield. Around twothirds (66%) of the 59 countries surveyed by the real estate adviser for its annual Main Streets Across the World report reported prime rents either rising or remaining static over the year to June. The findings paint a brighter outlook to those of 2009, which revealed the biggest global fall in rents in the report’s 25 year history. Main Streets Across the World provides a global barometer of the retail sector, tracking rents in the world’s top 269 shopping locations across 59 countries. The league table is drawn up by taking the most expensive location in each of the countries monitored. New York’s Fifth Avenue, where rents increased by 8.8%, kept its number one spot as the world’s most expensive retail address, for the ninth year running. Causeway Bay in Hong Kong remained at second place. London’s New Bond Street leapt two rankings, to overtake Avenue des Champs-Elysées in Paris – the biggest faller in the top ten with a 9.5% rental decrease - as the most expensive location in Europe. The emerging markets performed strongly due to strong tourism and demand from international retailers. Brazil’s Haddock Lobo street in Sao Paulo was the biggest riser globally, with rents increasing by 92%. Ginza in Tokyo, Japan, climbed from fifth in the league table last year to third this year and South Korea’s Myeongdong in Seoul jumped three places from eleventh to eighth.

Rank 2010

Rank 2009

USA

New York

Hong Kong

Country

City

Street

US$/sm /mo

% change

Fifth Avenue

1,660

+8.8

Hong Kong

Causeway Bay

1,493

+9.6

Japan

Tokyo

Ginza

787

+4.5

London

New Bond Street

750

+19.4

France

Paris

Avenue des Champs Elysées

711

-9.5

Italy

Milan

Via Montenapoleone

690

Switzerland

Zurich

Bahnhofstrasse

614

South Korea

Seoul

Myeongdong

494

+17.8

Australia

Sydney

Pitt Street Mall

420

Germany

Munich

Kaufingerstrasse

377

+3.3

Source: Cushman & Wakefield

On the great shopping streets of the world, in cities such as London and New York, demand has continued to exceed supply and the appetite of international brands has resulted in rental uplift. Of all the locations in Europe that were monitored, London’s New Bond Street was the biggest riser, with a 19.4% rental increase. In Asia-Pacific, India’s Linking Road in Mumbai showed the strongest growth, with rents rising by 33%. Around the world, the biggest fall in rents was in Bulgaria with a 50% drop in Alexander Batenbeg, Plovdiv, and in Alexandrovska, Burgas. Europe as a whole registered a decline in rents of 4.5%. Ireland’s Grafton Street in Dublin tumbled from eighth to thirteenth, with rents dropping by 25.8%, and Ermou in Athens, Greece, plummeted seven rankings with a 15.4% rental decline. `This year’s findings reveal a clear polarisation between prime and secondary locations. Secondary locations have been much more adversely affected by the fall-off in retailer demand and consequent decline in rents, as retailers move quickly to close unprofitable stores and rein in expansion. The world’s 10 most expensive shopping streets 2010 John Strachan, Global Head of Retail, Cushman & Wakefield, said: “The aftershocks of

the global economic recession are still being felt in the retail property market and the path leading from recession to recovery has been far from smooth. In the more mature markets, occupiers are expected to remain cautious and selective about the space they take. However, on the great shopping streets of the world, in cities such as London and New York, demand has continued to exceed supply and the appetite of international brands has resulted in rental uplift. The emerging economies look set to experience significant growth in the retail sector, thereby boosting demand for good quality, well-located property. At present, Asia-Pacific has the best growth prospects.” Retailers on New York’s Fifth Avenue can expect to pay $1,850 per sq ft per annum. Gene Spiegelman, Executive Vice President, Cushman & Wakefield New York, said: “Despite ongoing domestic and international economic pressures, Fifth Avenue continues to represent a highly desirable global branding opportunity for major retailers. With New York’s attraction as such a popular destination for domestic and interna-

tional tourism, Fifth Avenue is able to maintain the top position for companies that want to project or maintain their brands on the global stage.” New Bond Street, where retailers can expect to pay $836 per sq ft per annum, jumped to the most expensive street in Europe. Peter Mace, Head of Central London Retail, Cushman & Wakefield, said: “New Bond Street remains one of the most sought after locations in the world for luxury brands and, due to the significant imbalance between supply and demands, the thoroughfare continues to witness significant rental growth. The recent letting of 169 New Bond Street to Piaget represented a record rent for the street with the new tenant also contributing a significant premium to secure vacant possession. There were four under-bidders for the store. This trend is likely to continue for the foreseeable future on the basis that there are still a large number of retail requirements that remain unsatisfied.” Avenue des Champs-Elysées in Paris fell one ranking to the

second most prestigious location in Europe. Christian Dubois, Head of Retail Services France, Cushman & Wakefield, commented: “The strong resistance from the Municipality to grant approvals to new fashion retailers, the mismatch between the availability of large spaces and requirements for smaller stores from international retailers, combined with negative indexations of the rents, have all contributed to the lower ranking of Champs Elysées. However, the future openings of H&M, Abercrombie & Fitch and Tommy Hilfiger have attracted great interest from new brands across the world and we are seeing severe competition for few opportunities once again. Together with the new trading laws allowing retailers to trade seven days a week, we expect rental values to rise again in the short term.” Brazil and South Korea both performed strongly due to strong tourism and demand from international retailers. Mariana Mokayad Hanania, Manager – Research Services, Cushman & Wakefield South America, said: “The sharp increase in Brazil’s GDP in Q1 2010, confirmed that the country is in a cycle of economic growth based on the solid economic indicators of the first half of the year, both in terms of output as well as domestic demand. The overall retail sales increased about 13.5% in the first quarter and retail rents on the whole have been well supported by the increase in household consumption, jobs and wages. Most of the Brazilian luxury market (70%) is concentrated in São Paulo. There has been a growth in demand for stores on Oscar Freire, H. Lobo and Lorena streets, as well as in Shopping Iguatemi; where most of the luxury brands want to be located. Availability in these areas is extremely reduced and asking rents are continually increasing.” Mark Burlton, Cross Border Retail Partner EMEA & Asia, Cushman & Wakefield, said: “The recent rise of Korea in the list is largely a result of its general economic recovery fuelled main-

The emerging economies look set to experience significant growth in the retail sector, thereby boosting demand for good quality, well-located property. At present, Asia-Pacific has the best growth prospects.” ly by a very strong export market which saw a 7.2% rise in the second quarter of 2010. Consumer expenditure initially lagged behind these optimistic figures but recent increases in dining out, clothing and footwear consumption give further confidence. Retail rents have returned to precredit crunch numbers with prime areas such as Myeongdong and Gangnam Station showing an average 17% increase this year. Global brands such as H&M and Zara have opened in prime locations having out-bid local retailers and the rapid rise in low and mid-priced cosmetics companies have also driven rents upwards. These trends are likely to continue in the near term as demand is still very much outstripping supply.” Anthea To, Retail Analyst, Cushman & Wakefield, said: “As we move in to 2011, the global economic outlook looks likely to remain uncertain and concerns remain that the recovery will stall. A lack of clarity in future conditions is clearly holding some retailers back and preventing a stronger recovery taking hold. A consensus is emerging that growth next year will be more modest than originally forecast. Nonetheless, the more savvy operators have been active through the low point in the market, leasing space and securing good deals from landlords, which will enable them to take full advantage of a more sustained economic recovery once it kicks in.”

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November 12, 2010 B5

Entrepreneurship Indonesia Landscape of Diversity in London By Jeannifer Filly Sumayku

Photo: Dwiko Arie

An Indonesian wood installation exhibition entitled “Landscape of Diversity” was successfully held by Alur Design Group at London Festival of Architecture 2010 (LFA 2010).

geometric motifs of Kawung into the computer modeling with the latest technology, and then applied it on the three-dimensional installation.

he exhibition is part of the International Architecture Showcase which was initiated by the British Council and the Architecture Foundation at the London Festival of Architecture. Indonesian Ambassador to the United Kingdom and Ireland Yuri Thamrin inaugurated the exhibition and said that young Indonesian architects who are members of Alur Design Group have successfully launched diplomacy in creative industry. He said that Indonesian architects do not lag behind architects in England, and that they could compete with the architects of the world in line with the progress of IT in Indonesia. The participation of young Indonesian architects in LFA 2010 is the first step in introducing Indonesian

FROM LEFT TO RIGHT: Ardes Perdhana, Monique Suksmaningsih, Olivia Putihrai, H.E. Yuri Thamrin (Indonesian Ambassador to the United Kingdom and Ireland), Kuncara Wicaksana, Rizki Nindito, Prama Milyardi.

creative industries to the world. The Ambassador said architecture also means creative industry. According to him, creative industry products sold in the world equal to US$500 billion in 2005. There are three important things in the economy, namely creativity, skill and talent. Indonesia is very strong in arts and

culture, as seen from the culturebased creative products like fashion products and crafts. However, he recognized that Indonesia still needs to improve the creativity on technologybased industries, such as movies, video, and designers. Yuri reminded that England is the center of world creative industry. So he hopes that all architects

at Alur Design Group may keep on developing their potential and create a good environment to build cooperation with all creative industries in the world. The theme “Landscape of Diversity” was inspired by the culture and original traditions in Indonesia. The diversity emerged as a result of the process of cultural

Alur Design Group explores the cultural wealth of Indonesia as a source of inspiration and ideas that have no end, processes it through today’s leading design engineering and executes it by implementing it using most modern techniques.

change, social and economic history, which ultimately affected the diverse footprints and density, ethnology, ethnic groups and batik motifs from each province in Indonesia. The diversity of batik motifs became the focus of experiments that were used as the base of installation. The pattern that was used in the installation was inspired by Batik Kawung, which has a basic form of circles that overlap and represent the fruit of a palm tree. Batik Kawung is already known in Java since the 13th century. Visually, the geometric motif is characterized by the repetition, resemblance to itself and the reduction factor. Alur Design Group adapted the traditional

Alur Design Group was formed around October of 2009 by six young Indonesian architects who worked in London, namely Prama Milyardi, Rizki Nindito, Ardes Perdhana, Olivia Putihrai, Monique Suksmaningsih and Kuncara Wicaksana. Its aim is to create innovative architecture that is adaptive to change. Alur Design Group explores the cultural wealth of Indonesia as a source of inspiration and ideas that have no end, processes it through today’s leading design engineering and executes it by implementing it using most modern techniques. Monique said that with the work experience in foreign countries, Alur Design Group tries to be a two-way bridge between Indonesia and the international world. Landscape of Diversity was planned to be shown not only in LFA 2010, but also in other international events. Alur and the Embassy of the Republic of Indonesia in the UK agree that this installation is a very effective media to promote Indonesia and its creative young generation. (JFS/ TPP)

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B6 November 12, 2010

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Leadership Power and Politics in an Organization By Dr. Karan Singh

If one were to see Power as an engine, it would need two kinds of fuel to keep it running – Politics as well as Hard Work.

ow is power is gained or lost, given that politics in an organization is the system of manoeuvring for power? Two theories explain how power is gained or lost, namely Social Exchange Theory and Strategic Contingencies Theory. The former describes how power is exchanged as reciprocal influence processes happen in small groups between followers and leaders, while the latter describes the change of power between different subunits of an organization. I will deal with the latter first: the Strategic Contingencies Theory, which is perhaps more macro in its gambit, from the politics point of view. It explains how subunits within in organization gain or lose power to have a greater influence on decisions, like, which division is the chief executive going to be selected from, or where lies the decision for the organization’s competitive strategy, or who controls the distribution of resources amongst various activities. This power depends on three factors: 1) Where the Pool of Expertise lies to cope with core business problems, 2) Centrality and Criticality of the subunit in the work flow and 3) Uniqueness or Sub-

- “Play the perfect courtier”. Law 30 - “Make your accomplishments seem effortless”.

stitutability of the subunit’s expertise. This power of expertise is a result of how the expertise is demonstrated in coping with critical contingencies and success in solving crucial and important problems. However, the theory does not take into account as to how a subunit can use its power to protect or enhance its perceived expertise. Examples abound in various company cultures – ‘in this company usually the Marketing Director becomes CEO, or in this company, the Finance Director usually moves up’. In studies by Salancik & Pfeffer, the use of “institutionalization” has been described as the process by which powerful individuals or subunits use political tactics to protect or increase their political power. This is done through interpretation of events in a biased manner, control over distribution of information and denying others the opportunity to demonstrate their superior expertise through being silenced, co-opted or even expelled from the organization. But this is not unlimited, and somewhere down the line the people who play politics have to show bottom-line results, or face extinction. The Social Exchange Theory postulates essentially that in the

Photo: www.pegasuscom.com/Ron Chapple

social interaction between leaders and groups, the amount of status and power accorded to a person are directly related to the group’s evaluation of the person’s potential contribution, relative to that of the other members; and leaders are expected to be innovative in dealing with serious problems and obstacles. Innovation can be both rewarding as well as punishing, while success resulting from innovation leads to greater credit, but failure leads to greater blame too. The negative effects are more if the failure appears to be due to poor judgment or incompetence, rather than because of circumstances beyond the leader’s control. The theory emphasizes on a direct relationship between Expert Power and Competence, though

does not describe how reciprocal influence processes affect a leader’s reward and referent power. Successful managers are Managers of Perception. The words in the definition above (evaluation, potential, relative, circumstance beyond control) are fertile for Perception. Whose evaluation? How many for and how many against the person’s potential? How many in the middle? If one reads between the lines there are suggestions of the use of one power to keep another. Reward Power, Information Power, Referent Power, Legitimate Power, Coercive Power - whichever finds best application for the situation—Power Play, as they say. In the real world, as we know,

The new Maserati Quattroporte Sport GT S sets another milestone in terms of sportiness in the high performance luxury sedan segment. It offers sporty handling which further enhances the Quattroporte’s already optimal dynamic balance. It features the evolution of sporty automatic gear-shifting software, designed to win over committed and demanding drivers, seeking an exciting driving experience. It also equipped with the “Sport” button, makes it possible to deploy the full power of the engine and produce a deeply enveloping and throaty exhaust note. The Quattroporte Sport GT S’s engine has been developed to favor maximum power output. Main technical data: • Displacement: V8 4,691 cc • Power: 323 kW (433hp) @ 7,000 rpm • Torque: 490 Nm ( 361 lb/ft) @ 4,750 rpm • Max engine speed: 7,200 rpm

there is a lot of “Contingency”. Only a few would argue that ‘Politics’ and ‘Machiavellian’ are not cousins. The game of Politics is all about keeping and gaining power, not losing power. For those going up the ladder and interested in an interesting reading source, there is the book The 48 Laws of Power by Robert Greene. Topics include: Law 1 - “Never outshine the master”. Law 3 -“Conceal your intentions”. Law 5 - “So much depends on reputation-guard it with your life”. Law 6 - “Court attention at all cost”. Law 9 “Win through your actions, never through argument”. Law 11 “Learn to keep people dependent on you”. Law 19 - “Know who you are dealing with-do not offend the wrong person”. Law 24

Quattroporte Sport GT S is equipped with an automatic sixspeed transmission developed with sportiness of a new and specific gear-shifting strategy: the MC-Auto Shift mode, Manual Mode, and Manual Sport mode. • “MC AUTO SHIFT” mode: In order to optimize standing starts, the automatic gearbox offers the MC Start Strategy, which functions with the MSP off. The driver should press and hold the brake pedal, then start pressing the accelerator and releases the brake pedal only when the optimum revs are reached (between 23002500 rpm). This fast start strategy, recommended only for use on the race track and in a situation of complete safety, reduces the 0 to 100 Km/h (0-62 mph) time from 5.3 seconds to 5.1 seconds. • “MANUAL MODE”: In manual mode the gear-shift is directly controlled by the driver, allowing the engine to reach its top speed. • “MANUAL SPORT”/”AUTO SPORT” mode:

At the same time, while being clever and street smart are virtues in today’s competitive world of business, Pfeffer’s (1992) research and observations emphasize the following characteristics as being especially important for acquiring and maintaining strategic power bases: • High energy and physical endurance is the ability and motivation to work long and often grueling hours. Without this attribute, other skills and characteristics may not be of much value. • Directing energy is the ability and skill to focus on a clear objective and to subordinate other interests to that objective. Attention to small details embedded in the objective is critical for getting things done. • Successfully reading the behavior of others is the ability and skill to understand who are the key players, their positions and what strategy to follow in communicating with and influencing them. Equally essential in using this skill is correctly assessing their willingness or resistance to following the Strategic Leader’s direction. • Adaptability and flexibility is the ability and skill to modify one’s behavior. This skill requires the capacity to re-direct energy, abandon a course of action that is not working, and manage emotional or ego concerns in the situation. • Motivation to engage and

confrontconflict is the ability and skill to deal with conflict in order to get done what you want accomplished. The willingness to take on the tough issues and challenges and execute a successful strategic decision is a source of power in any organization. • Subordinating one’s ego is the ability and skill to submerge one’s ego for the collective good of the team or organization. Possessing this attribute is related to the characteristics of adaptability and flexibility. Depending on the situation and players, by exercising discipline and restraint an opportunity may be present to generate greater power and resources in a future scenario. The topic of Power and Politics is wide and interesting to all of us in the workplace—and intriguing too. While there is the gray side and the white side within both power and politics, it is difficult to easily judge which is which. At the same time, if one were to see Power as an engine, it would need two kinds of fuel to keep it running – Politics as well as Hard Work. Dr. Karan Singh MBA, DBA, Management Consultant, is presently Management Development Director at President University, and Managing Consultant of PT King & Singh Consulting. In his seventeenth year in Indonesia, Dr. Singh conducts a variety of training programs and is a Consultant in Integrated Marketing Communications and Cross Cultural Management.

When down-shifting, the throttle blip is matched with the SPORT-mode exhaust sound to facilitate maximum driving enjoyment. Exterior New 20” Multi Trident Silver wheels are fitted as standard, together with red brake calipers and Dual Cast technology brakes. The exterior body color range includes all 19 colors available for the Quattroporte and the Quattroporte S. Interior The sporty look of the interior features new M-design seats with perforated Alcantara® and leather upholstery. The interior configuration range features 10 leather colors (Avorio, Sabbia, Cuoio, Marrone Corniola, Grigio Ghiaccio, Grigio Medio, Blu Navy, Rosso Corallo, Bordeaux, Nero)

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November 12, 2010 B7

Mining Major Players in Indonesia’s Mining Industry By Ririn Margaretha

Following are the major players in Indonesia’s mining industry. They have for decades contributed a great deal to economic growth and will continue to fuel the nation’s neconomy well into the future. They employ a lot of local and foreign workers and pay huge amounts of money in the form of income and value added taxes that fill the government’s treasury every month.

1. ANEKA TAMBANG

Adaro Energy is currently Indonesia’s second largest thermal coal producer, operates the largest single coal mine in Indonesia, and is a significant supplier to the global seaborne thermal coal market. Adaro Energy was established under the name PT Padang Karunia, a limited liability company established in Indonesia in 2004. On April 18, 2008 Padang Karunia changed its name to PT Adaro Energy Tbk in preparation for becoming a public company. Adaro Energy’s vision is to be the largest and most efficient integrated coal mining and energy company in Southeast Asia. Adaro Energy and its subsidiaries currently deal in coal mining and trade, coal infrastructure and logistics, and mining contractor service. In addition to large coal reserves, Adaro Energy has high quality assets to support the operation such as the 75 kilometer haul road connecting the mine location to the Crushing Facility in Kelanis and Coal Terminal in Pulau Laut.

2. ANEKA TAMBANG

Antam is a vertically integrated, export-oriented, diversified mining and metals company. With operations spread throughout the mineral-rich Indonesian archipelago, Antam undertakes all activities from exploration, excavation, processing through to marketing of nickel ore, ferronickel, gold, silver, and bauxite. The company has long-term loyal blue chip customers in Europe and Asia. Due to the vastness of the company’s licensed exploration areas as well as its known large holdings of high quality reserves and resources, Antam has formed several joint ventures with international partners to profitably develop geological ore bodies into profitable mines. The company generates healthy cash flows, and has prudent capital management. In 1997, the company conducted an initial public offering (IPO) and listed its shares on the Indonesia Stock Exchange and 35% were sold by the government to the public, to raise money for a ferronickel expansion. In 1999, Antam listed its shares in Australia as a foreign exempt entity and then in 2002 augmented its status to the more stringent ASX Listing.

3. ARUTMIN INDONESIA

Arutmin is a modern coal mining company supplying highly competitive coal products with a high reactivity and excellent combustion characteristics. Stringent quality assurance procedures and outstanding customer support have made us a preferred provider of coal products for power plants and industrial plants in Asia and beyond. Arutmin’s firm commitment to environmental protection and community development is exemplified by numerous initiatives that have resulted in significant improvement in the living conditions of the communities around our mining areas. Constant training, apprenticeship and employee skills development programs, and a highly dedicated workforce have positioned PT Arutmin Indonesia among Indonesia’s largest and most respected coal producers.

manganese, iron ore, uranium, nickel, silver and titanium minerals, and has substantial interests in oil, gas, liquefied natural gas and diamonds. The central tenet of the BHP Billiton business model is that its diversified portfolio of high quality assets provides stable cash flows and an enhanced capacity to drive growth. In FY2009, it generated revenue of US$50.2 billion, attributable profit (excluding exceptional items) of US$10.7 billion and net operating cash flow of US$18.9 billion.

denum and silver for the world market. The Grasberg Mine is the largest gold mine and the third largest copper mine in the world. It is located in the province of Papua in Indonesia near Puncak Jaya, the highest mountain in Papua, and it has 19,500 employees. It is majority owned through a subsidiary by Freeport-McMoRan, based in the United States (67.3%), along with its wholly owned subsidiary, PT Indocopper Investama Corporation (9.3%), the government of Indonesia (9.3%) and a production-sharing joint venture with Rio Tinto Group (13%).

another 10 years to 2013. PT Koba Tin is an integrated mining company involving in exploration, mining, processing, smelting and marketing of tin. The company is certified by Lloyd’s Register Quality Assurance with ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:1999 for an integrated management system covering quality, environment and occupational health and safety.

pipeline of projects including Cadia East, Ridgeway Deeps, Gosowong Extension Project and Hidden Valley. Headquartered in Melbourne, Australia, Newcrest is among the top 20 companies listed on the Australian Stock Exchange by market capitalization. The Company has around 5,100 employees and long term contractors.

12. NEWMONT NUSA TENGGARA

6. PT BUKIT ASAM 8. BUMI RESOURCES

The coal mining in Tanjung Enim was initiated by the Dutch Colonial Government in 1919 by operating the first coal mine using open pit mining method in Air Laya. When the Dutch colonial period ended in Indonesia, the mining workers fought for the nationalization of the mines. In 1950, the Indonesian Government approved the establishment of State-Owned Bukit Asam Coal Mine or Perusahaan Negara Tambang Arang Bukit Asam (PN TABA). On December 23, 2002 it became a publicly listed company on the Indonesian Stock Exchange under the code of “PTBA”. Following the improvement of the train’s carriage load, the company has been able to increase the production of coal to reach 11.6 million tons on 2009, or an increase of 7.4% from 10.8 million tons on 2008. In 2009, the company was able to maintain the sales volume for coals, at 12.5 million tons with a slight decrease of 2.4% from the sales volume of 2008. Company has able to increase revenue to Rp8.9 trillion, an increase by 24% from Rp7.2 trillion from 2008.

7. FREEPORT INDONESIA

BUMI is a leading natural resources group, and the largest thermal coal producer in Indonesia. With enormous reserves and a solid resource base, it plays a major role in supporting domestic energy needs as well as being a notable exporter. It is Asia’s fastest and the world’s second fastest growing coal company. It has successfully pursued opportunities to diversify its business portfolio through development in non-coal sectors such as zinc, lead, copper, gold, iron ore and coal bed methane. Throughout 2009, the company managed to increase coal production by 19.5% to 63.1 million tonnes in 2009 compared to 52.8 million tonnes in 2008. The total sales booked by the company in 2009 increased by 13.4% from 51.5 million tonnes in 2008 to 58.4 million tonnes in 2009. Mines with low to medium stripping ratios, combined with the use of sophisticated technology and equipment renewal, resulted in increased efficiency in mining operations. Hence, the Company was able to reduce the coal production cash cost per tonne from US$ 33.1 in 2008 to US$ 32.7 in 2009.

PT Medco Energi Internasional Tbk is an Indonesia-based integrated energy company. The Company is engaged in oil and gas exploration and production, drilling services, methanol production and the power generation industry. The Company holds working interests in various exploration and production blocks in Indonesia, Cambodia, Oman, Yemen, Libya, Tunisia and the United States. In addition, it has 8 onshore rigs and six offshore rigs (swamp barge) and operates one methanol plant, one liquefied petroleum gas plant and three power plants. The Company’s Indonesian operations span from Aceh in Indonesia’s western border to Papua in the eastern territory. On July 31, 2008, the Company divested its subsidiary, PT Medco E&P Tuban. On September 10, 2008, the Company completed the divestiture of PT Apexindo Pratama Duta Tbk. On June 30, 2009, Asia Pulse reported that the Company acquired two coal mining companies, PT Duta Tambang Sumber Alam and PT Duta Tambang Rekayasa.

11. NEWCREST INDONESIA

PT Newmont Nusa Tenggara (PTNNT) is an Indonesian joint venture company owned by Nusa Tenggara Partnership and by PT Pukuafu Indah. In 1986 PTNNT signed a Contract of Work Agreement for our Batu Hijau copper and gold mine with the Republic of Indonesia in an area located on West Nusa Tenggara Province. The Batu Hijau porphyry copper deposit was discovered in 1990 after ten years of exploration. Following the approval of the feasibility study and environmental impact analysis (ANDAL), a US$1.8 billion construction project commenced in early 1997 and finished in late 1999, followed by commissioning/ start up. Commercial production started on 1 March 2000. Based on the feasibility study, Batu Hijau’s ore reserves were 1.1 billion tons containing 0.525 percent copper and 0.37 grams per ton of gold. At the current production rate, Batu Hijau’s mine life is expected to continue until 2023. Currently, PTNNT is responsible for the direct employment of over 7,000 people. Of these, more than 60 percent are from the province of West Nusa Tenggara.

13. RIO TINTO

9. PT KOBA TIN

5. BHP BILLITON

BHP Billiton is the world’s largest diversified natural resources company. It is also one of the world’s largest producers and marketers of export thermal coal. As at 30 June, 2009 it had some 40,990 employees working in over 100 operations in 25 countries. Reflecting its aim to be a premier global company, it occupies significant positions in major commodity businesses, including aluminum, energy coal and metallurgical coal, copper,

14. PT TIMAH

10. MEDCO ENERGY

4. BERAU COAL

PT Berau Coal was established in 1983 and is a first generation Coal Contractor. It produces coal in Berau area of east Kalimantan within the concession awarded to the company under the Coal Development Cooperation Contract system established by the Government of Indonesia. PT Berau Coal is a joint venture between PT Armadian Tritunggal (51%) dan Rognar Holding BV (39%), a Dutch company and Sojitz Corp. (10%) a Japanese company. Exploration in the concession area is advanced and has identified significant locations where coal measures occur. These have been subdivided into six reserve areas with significant demonstrated coal resources. Commercial production commenced in 1994 from Lati, in 1996 from Binungan and in 2001 from the Sambarata area. Exploration in the Kelai and Punan areas is still progressing to determine coal reserves and economical potential. The Company produces typical Indonesian sub-bituminous coal with low ash relatively low sulphur content and with calorific values in the range of 5000 to 6000 Kcal/ ckg(arb).

As the largest tin mining company in Indonesia as well as being the world’s largest exporter, PT Timah Tbk holds a total of 114 mining license both onshore and offshore with the area of operation covering Bangka Belitung Province and Riau Archipelago Province.

Freeport-McMoRan Copper & Gold Inc., often called simply Freeport, is the world’s lowest-cost copper producer and one of the world’s largest producers of gold. It was formerly based in New Orleans, Louisiana, but moved its headquarters to Phoenix, Arizona, after acquiring copper producer Phelps Dodge in 2007. In addition to Phelps Dodge, its subsidiaries include PT Freeport Indonesia, PT Irja Eastern Minerals and Atlantic Copper, S.A. Freeport is the largest publicly traded copper and molybdenum producer in the world. Best known for its Grasberg mine in Papua province, Indonesia, the company is the largest taxpayer to the Indonesian government. It mines and mills ores containing copper, gold, molyb-

PT Koba Tin is a joint venture company between Kajuara Mining Corporation Pty Limited (75%), a company incorporated in New South Wales Australia and PT Timah Tbk (25%), a public-listed Indonesia mining company. The company operates under a Contract of Work (CoW) with the Indonesian government for a total area of 41,680 hectares-spread over 80 km from east to west—in the southeastern part of Bangka in the Province of Bangka Belitung. The original CoW expired in 2003 and has been extended by

Newcrest is Australia’s largest gold producer and one of the world’s top 10 gold mining companies by production, reserves and market capitalization. Newcrest has a portfolio of low cost, long life operating mines, a strong pipeline of growth projects and highly prospective brown and greenfield exploration projects. As at 30 June 2009, it had gold reserves of 42.8Moz and copper reserves of 4.67Mt and gold resources of 80.0Moz and copper resources of 14.36Mt. The company’s current activities include six operating mines: Cadia Valley Operations, comprising Cadia Hill and Ridgeway (near Orange, NSW), Telfer Open Pit and Telfer Underground (Pilbara Region, Western Australia), Cracow (Gladstone Region Central Queensland) and Kencana (Indonesia). The company has an extensive development

Rio Tinto is one of the world’s leading mining and exploration companies. IT finds, mines and processes the earth’s mineral resources - metals and minerals essential for making thousands of everyday products that meet society’s needs and contribute to improved living standards. Its activities span the world with production from every continent. Its products include aluminum, copper, diamonds, energy products, gold, industrial minerals and iron ore. With founding companies established in 1873 and 1905, Rio Tinto stands today as one of the world’s leading mining and exploration companies. It has scale and global presence, operating on nearly every continent.

PT Timah Tbk was listed on the Jakarta, Surabaya, and London Stock Exchanges on 19 October 1995. Today 65% of the company’s shares are owned by the government of Indonesia, the remaining 35% owned by domestic and international investor. The company is primarily engaged in integrated tin mining operations, including the exploration, mining, smelting and marketing of its products to customers overseas. It is also engaged in coal mining and asphalt exploration. The company acts as a holding company, which supports the business activities of its subsidiaries. As of December 31, 2009, it had seven subsidiaries: PT Tambang Timah; PT Timah Industri; PT Timah Eksplomin; PT Timah Investasi Mineral; PT Dok & Perkapalan Air Kantung; Indometal London Limited, and PT Tanjung Alam Jaya.

15. PT INCO

PT Inco is one of the world’s premier producers of nickel. For more than three decades, since the signing of its Contract of Work with the Indonesian Government in 1968, the Company has provided skilled jobs, shown concern for the needs of the communities in which it operates, benefited shareholders and contributed positively to the Indonesian economy. PT Inco produces nickel in matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Sorowako on the island of Sulawesi. Its entire production is sold in US Dollars under longterm contracts for refining in Japan. PT Inco’s competitive strengths include abundant ore reserves, a skilled, well-trained workforce, low-cost hydroelectric power, modern production facilities and an assured market for its product. The Company is owned 58.73% by Vale Inco of Canada, one of the world’s leading nickel producers, and 20.09% by Sumitomo Metal Mining Co., Ltd. of Japan, a premier mining and smelting company. In addition, 20.14% of PT Inco’s shares are owned by public shareholders and the balance by four other Japanese companies.

The President Post

B8 November 12, 2010

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Executive Highlights Chief Economics Minister Hatta Rajasa said the government has secured US$53 billion in infrastructure investment commitments from Japan over the next 15 years. The investment commitments were made during the Japan-Indonesia Economy Forum (JIEF) held on 14-16 October. The senior minister said there were a total of 44 infrastructure projects in the package, including ports, bridges, toll roads and power projects for development in the “economic corridor” linking the eastern coast of Sumatra and northwest Java. Fourteen projects have been targeted for implementation for 2010-2014, and 30 projects for 2015-2025. Most of these projects have been previously proposed by the Yudhoyono administration, but so far have been unable to attract investors due to regulatory uncertainties. Hatta said these projects would be funded by the private sector and public-private partnership schemes with the support of Japanese financing agencies. He said his ministry, together with its Japanese partners, also planned to profile other economic corridors on the coasts of Kalimantan, Sulawesi and Papua for infrastructure development. Analysts say the investment commitments reflect Japan’s effort to maintain its influence in Indonesia in the face of China’s growing clout, while providing projects for its own contractors.

Finance Minister Agus Martowardojo confirmed the government would offer a Yen-denominated Samurai Bond issue worth up to ¥55 billion (US$680 million) later this year. Pricing is expected in early November, with yields estimated at 50-70 basis points above the yen swap rate. Like the country’s previous ¥35 billion samurai bond issue last year, the latest bond floatation will be guaranteed by the Japan Bank for International Cooperation (JBIC). Analysts expect strong investor demand for Indonesia’s latest samurai bonds on expectations the country will see a ratings upgrade from Moody’s and Standard & Poor’s within the next six months. The government had initially planned a ¥100 billion samurai bond offering earlier this year. The amount was subsequently reduced and the issue date extended due to lower than expected government spending and better than projected revenues. Agus said the samurai bonds were necessary in anticipation of the large government spending that normally takes place in the fourth quarter. The finance ministry is still projecting a 2.1% budget deficit for 2010 but experts think it will be closer to just 1.5%.

Norway’s Golar lng Energy has won a US$500 million contract from The Rupiah hit a Nusantara Regas to 40-month high to trade build a Floating Storage at Rp8,896/US$ as of Regasification Terminal 25 October, (FSRT) breaking the psychological Rp8,900/US$ level. The rupiah’s surge comes following the recent G-20 agreement reached in Seoul, South Korea aimed at avoiding a global currency war and allowing markets to set foreign exchange values. The positive sentiment toward the rupiah also helped boost Indonesia’s benchmark stock index (IDX) to a record high of 3,643.5. As of 19 October (the latest data publicly available), Indonesian treasuries held by foreign investors totaled an all-time high of Rp191 trillion, with the capital inflow into the local debt market also helping to prop the rupiah.

in West Java. Under the deal, Golar will convert one of its existing LNG carriers to an FSRT and lease it to Nusantara for an 11year period. The project will be Indonesia’s first LNG regasification terminal and the first FSRT project in Asia. Golar chief executive Oscar Spieler said the contract cemented the firm’s position as a leading converter of existing LNG carriers for FSRT service and a major player in the growing market for marine based LNG infrastructure. Nusantara Regas is a joint venture between state gas distributor PGN and state oil and gas firm Pertamina. Nusantara recently signed an agreement with state power utility PLN to sell up to 400 million standard cubic feet per day (mmscfd) of gas from the planned West Java FSRT over a 10 year period. The LNG for Nusantara’s FSRT will be supplied from the LNG facility in Bontang, East Kalimantan.

The Government and Parliament’s Budget Committee have reached agreement on key macroeconomic assumptions for the Bakrie Sumatra 2011 budget. Plantations has The committee has been in finalized a US$180 deliberationssincethegovernment submitted its proposal to million deal with Bank parliament in August. Agreement on the key assumptions will Mandiri to take over likely enable the budget’s passage by early November. Budget the debt and assets of committee deputy chairman Olly Dondukambe said GDP Domba Mas Group growth was forecast to reach 6.4% in 2011, with household consumption contributing 57.1% of GDP, investment 31%, government spending 9.4% and net exports (exports minus imports) 2.4%. On a sectoral basis, Olly said economic expansion would be supported by 12.6% growth in the transportation and communications sector, 4% expansion in the agricultural sector and growth of 4.5% in manufacturing. The budget committee agreed to an inflation forecast of 5.3% for 2011, supported by a stable rupiah and adequate supplies of food and other staple items. The rupiah-dollar exchange rate was forecast at Rp9,250/US$ in 2011, with a projected rise in capital goods imports with the accelerating economy expected to temper the rupiah’s appreciation from portfolio inflows. Bank Indonesia’s benchmark rate was projected at 6.5% for 2011. Oil production was forecast at 970,000 barrels per day, while oil prices were projected to average US$80 per barrel.

Under the debt restructuring scheme, Bakrie Sumatra will repay Domba Mas’ debts to Mandiri in several tranches over a period of seven years. Domba Mas is a major producer of oleochemicals and palm oil products. The group produces around 200,000 tons per year of oleochemicals including fatty acids and pharmagrade glycerin at its industrial facility in Kuala Tanjung, North Sumatra. It also owns 17,000 hectares of planted palm oil land as well as a land bank totaling 17,000 hectares. Bakrie Sumatra president director Ambono Janurianto said the acquisition was part of the firm’s strategy to become a major integrated crude palm oil processing company. The deal marks Bank Mandiri’s first successful attempt this year to retrieve bad loans from some of its largest debtors.

has secured a US$135 million loan facility from a bank consortium led by HSBC and DBS Indonesia.

Sedaya Finance has secured a Rp2.1 Trillion, three-year term loan from a consortium of international and local banks.

Other members of the consortium included Bank Rabobank International, Bank Permata and Bank Ekonomi Raharja. Bumitama said the loan would be used to finance expansion of its palm oil plantations and fund the acquisition of new palm oil estates. The firm currently owns 96,000 hectares of planted palm oil land and operates four palm oil mills with a total capacity of 240 tons/hour. HSBC Indonesia’s head of global banking Rajeev Babel said the loan, its first to Bumitama, reflected the bank’s long-term commitment to support the palm oil producer’s expansion. Bumitama is part of the Harita Jaya Raya Group which has interests in mining, logging and plantation estates.

Members of the consortium included Mizuho Corporate Bank Ltd., Standard Chartered Bank, Citibank N.A., Sumitomo Mitsui Banking Corp., Bank Mandiri, Natixis, Overseas Chinese Banking Corporation (OCBC), Bank Ekonomi Rahardja, BNP Paribas and HSBC. Astra Sedaya president director Djony Bunarto Tjondro said the funds would be used to support the firm’s credit expansion. As of end-September, the company has extended Rp15 trillion in new loans for the purchase of new and used cars as well as heavy equipment for mining, agriculture and infrastructure firms. Astra Sedaya is projecting a total of Rp18.5 trillion in new financing for 2010, up 44% from a year earlier. The company is forecasting new credit totaling Rp20 trillion for 2011. Astra Sedaya is a subsidiary of automotive giant Astra International.

Financing firm Astra

Selected Instant Indicators EXCHANGE RATE 2009 - 2010 11,900

15,000 14,500

US$ (LHS) 11,250

100 YEN (LHS) EURO (RHS)

13,510

14,000

11,010

13,500

10,600

13,000

10,454

12,500

9,950

12,000

9,545

11,500

9,300

11,000 8,927

8,650

10,500 10,000 9,500

8,000 Oct 09

J-10

Mar

Jun

Aug

2009

25 Oct

2010

STOCK MARKET INDEX

IDX

USA S&P 500 3,643

1,187 3,500

1,175

3,300 3,100

2,700

1,048

1,047

2,500

1,025

IDX - Jakarta

2,300

S&P - USA

2,368

2,100

950 Oct 09

J-10

Mar

Jun

2009

Aug

25 Oct

2010

INTEREST RATES %

6.5

6.5 6.3

6.5

6.3

6.2 6.1

5.9

Deposit Rate Interbank Call Rate SBI

5.6 Oct 09

Nov

J-10

Mar

Jun

2009

Aug

25 Oct

2010

INTERNATIONAL RESERVES AND TRADE BALANCE

US$ Mn

US$ Bn

Trade Balance*

3,370

Net FX Reserves

81.3

84 80

2,870

76 2,370

64.5

65.8 1,870 1,370

1,326

1,485

57.9

64 60

799

870

570

52 48

370

Palm oil producer Bumitama Gunajaya

-130

A09

Oct 2009

J-10

Mar

Jun

J 2010

The company sold 20% of its enlarged capital at Rp2,025 per share, which was at the upper end of its initial guidance of Rp1,6752,100 per share. The deal was 17 times oversubscribed, with more than 70% of the shares on offer purchased by foreign investors. The share sale was co-managed by UBS Securities Indonesia and Indopremier Securities. Tower Bersama corporate secretary Helmy Yusman Santoso said the strong demand for its shares underscored the company’s longterm prospects, supported by continued growth of the cellular services sector and the trend for joint leasing of telecommunications towers by the major players like Telkomsel, Indosat and XL Axiata. He said proceeds from the public offering would be used to finance capital expenditures and to help fund the firm’s business expansion plans.

Property developer Lippo Karawaci raised Rp2.5 Trillion in a secondary offering earlier this month. A total of 30 investors participated in the deal, with the bulk of demand coming from Singapore and Hong Kong, with some European interest. The deal, comanaged by Ciptadana Securities and Bank of America Merrill Lynch, was priced at the bottom of the guidance range of Rp550– Rp650. The secondary offering is slated to raise Lippo Karawaci’s capital by 43% to Rp7.5 trillion. The property firm said the deal was in line with its strategy to nearly triple its assets over the next five years. Company president director Ketut Budi Wijaya previously stated that the firm plans to build 20 new hospitals and 15 new shopping malls by 2015 in anticipation of the country’s strong economic growth and rising number of affluent consumers. Lippo Karawaci currently operates six hospitals, five malls and four residential townships.

1,100

1,075

2,900

Telecommunications infrastructure firm Tower Bersama Indonesia has raised nearly Rp2 trillion from its Initial Public Offering.

A10

The Indonesian Exim

Bank (LPEI) has secured a US$250 million loan from the Industrial & Commercial Bank of China (ICBC) to enhance trade between Indonesia and China. LPEI executive director I Made Gde Erata said the funds would be used to extend low interest loans to Indonesian companies exporting to China and provide guarantees to new exporters looking to sell their goods to China. The Indonesian Textile Association (API) and the Indonesian Shoemakers Association (Aprisindo) have already signed agreements with LPEI to access the funds for its members. The deal between LPEI and ICBC was signed during a state visit by Vice President Boediono to China earlier this month. It marks the second loan agreement between LPEI and ICBC, following a US$100 million deal last year.

Drydocks World’s Nanindah Shipyard in Batam was awarded a US$100 million contract by global marine support services firm Tidewater Pto build four deepwater platform supply vessels (PSV). Under the deal, Drydocks will deliver its first PSV with 18 months, followed by another PSV every two months. Drydock World chairman Khamis Juma Buamim said the contract underscored the world-class, integrated shipbuilding facilities at Nanindah, one of the busiest shipyards in Asia. The shipbuilder said the PSV would be 82 meters long, weigh 3,200 tons and be equipped with a cargo deck measuring 670 sq. meters. The deal also provides Tidewater the option to purchase four more PSV units from Nanindah following completion of the first four vessels.

The indonesian Coal Mining Association (ICMA) said coal production for 2011

could reach 340 million tons, up from a projected 310 million tons this year. Production for the first nine months of 2010 totaled 260 million tons. Total coal production in 2009 reached 253 million tons. Association chairman Bob Kamandanu said the rise in production next year would come from increased capacity from the major producers like Bumi Resources, Adaro Energy and Batubara Bukit Asam and additional production from new mining companies. He also said India would likely surpass Japan as the top buyer of Indonesian coal by 2012. India is projected to import 40 million tons of coal from Indonesia this year, compared to an estimated 60 million tons for Japan.

Retailer Modern Internasional has secured a Rp280 billion loan from Bank CIMB Niaga. Modern corporate secretary Donny Sutanto said around Rp230 billion of the funds would be used for debt refinancing, with the remainder to be used to finance the expansion of its 7-Eleven outlets. The executive said the firm was looking to open 20 new 7-Eleven shops over the next 6-12 months. It operates nine outlets currently. Modern Internasional obtained the Indonesian franchise rights to 7-Eleven in April last year through its subsidiary Modern Putra Indonesia. The convenience store has since become a popular hangout spot for students, white-collar workers and young, higher-income consumers.

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

Capital Market

Display until December 12, 2010 /// N0. 18 www.thepresidentpost.com

Indonesia’s Top Listed Companies Show Solid Growth This Year By Widya Sanjaya

he year 2010 has seen tremendous growth in the performance of listed companies on Bursa Efek Indonesia (BEI)—the Indonesian capital market. For a comparison, only 118 companies passed the initial selection phase of Investor magazine in 2009, but in 2010 the number soared to 151, of which only 17 registered negative returns during the past year. In fact up to 64 of the listed companies registered above-100percent returns—thanks to solid growth spurred by their expansive corporate actions and recovery of the global stock market condition. The Investor magazine, which screened the listed companies to determine BEI’s top performers for this year, adopted a set of welldefined criteria which includes: returns on stock performance over the past year, growth in net sales for the past three years, net operating margin (NM), return on equity (ROE), asset turnover (ATO), volatility of returns, continued on page C2

Top 10 companies Based on Assets 2009

Top 10 companies Based on Equity 2009

(in Million Rupiah)

Listed Company

Bank Mandiri Tbk

394,616,604

12.25%

Bank Rakyat Indonesia Tbk

316,947,029

Bank Central Asia Tbk

Astra International Tbk

39,894,000

5.51%

33,080,000

Telekomunikasi Indonesia Tbk

11,332,140

8.97%

10,619,470

Astra International Tbk

98,526,000

8.03%

97,064,000

9.84%

246,076,896

Telekomunikasi Indonesia Tbk

38,989,747

5.39%

34,314,071

Astra International Tbk

10,040,000

7.95%

9,191,000

Telekomunikasi Indonesia Tbk

64,596,635

5.27%

60,689,784

282,392,294

8.76%

345,569,856

Bank Mandiri Tbk

35,108,769

4.85%

30,513,869

Bank Rakyat Indonesia Tbk

7,308,292

5.79%

5,958,368

HM Sampoerna Tbk

38,972,186

3.18%

34,680,445

Bank Negara Indonesia Tbk

227,496,967

7.06%

201,741,069

Bank Central Asia Tbk

27,856,693

3.85%

23,279,310

Bank Mandiri Tbk

7,198,448

5.70%

5,315,316

Bank Rakyat Indonesia Tbk

38,603,725

3.15%

30,580,385

Bank CIMB Niaga Tbk

107,104,274

3.32%

103,197,574

Bank Rakyat Indonesia Tbk

27,257,381

3.77%

22,356,697

Bank Central Asia Tbk

6,807,242

5.39%

5,776,139

Bank Mandiri Tbk

38,264,079

3.12%

31,990,730

Bank Danamon Tbk

98,597,953

3.06%

107,268,363

Bank Negara Indonesia Tbk

19,143,582

2.65%

15,431,148

Perusahaan Gas Negara Tbk

6,229,043

4.93%

633,860

Indofood Sukses Makmur Tbk

37,140,830

3.03%

38,799,279

Telekomunikasi Indonesia Tbk

97,559,606

3.03%

91,256,250

Gudang Garam Tbk

18,301,537

2.53%

15,519,266

HM Sampoerna Tbk

5,087,339

4.03%

3,895,280

Gudang Garam Tbk

32,973,080

2.69%

30,251,643

Astra International Tbk

88,938,000

2.76%

80,740,000

Indosat Tbk

17,957,690

2.48%

17,409,621

Adaro energy Tbk

4,367,252

3.46%

887,198

Bumi Resources Tbk

30,261,178

2.47%

36,993,404

Bank Panin Tbk

77,857,418

2.42%

64,391,915

Adaro Energy Tbk

17,444,891

2.41%

14,009,245

United Tractors Tbk

3,817,541

3.02%

2,660,742

United Tractors Tbk

29,241,883

2.38%

27,903,196

Bumi Resources Tbk

69,662,728

2.16%

57,320,995

Bank Danamon Tbk

15,805,751

2.18%

10,579,068

Gudang Garam Tbk

3,455,702

2.74%

1,880,492

Bank Central Asia Tbk

27,279,495

2.22%

23,179,233

Total 378 Issuers

54.65%

53.42%

3,222,354,504

2,912,740,170

Total 10 Issuers

Market share

Total 378 Issuers

257,760,041

216,492,295

35.63%

34.48%

723,489,445

627,788,204

Listed Company

Total 10 Issuers

Market share

Total 378 Issuers

2009

2008

65,643,039

46,817,865

51.99%

60.06%

126,264,216

77,956,106

Listed Company

Total 10 Issuers

Market share

Total 378 Issuers

2009

Market Share

1,556,001,596

2008

Market Share

358,438,678

1,761,172,873

2009

Market Share

Listed Company

Market share

2008

Top 10 companies Based on Earnings 2009 (in Million Rupiah)

Total 10 Issuers

2009

Market Share

Top 10 companies Based on Net Profit 2009 (in Million Rupiah)

2008

435,859,091

412,132,099

35.53%

34.76%

1,226,577,268

1,185,745,900

The President Post

C2 November 12, 2010

www.thepresidentpost.com

Capital Market Indonesia’s Top Performing Listed Companies by Sector in 2010 By Widya Sanjaya

Photo: The President Post/Nandi Nanti

PT Astra International Tbk leads the way to top the list in the category of multifarious industries which saw 30 major players trailing behind it. Astra recorded a spectacular 179.89 percent growth in equity return (ROE) between April 2008 and March 2009.

his year’s ranking of listed companies by the Investor magazine is divided into 18 sectors in line with the sectors represented on the Indonesian Stock Exchange. So the companies represent top performers in agribusiness, forestry, multifarious industries, textile, garment and footwear, property and construction, infrastructure, trade, restaurant, hotel tourism and hospital, basic and primary industries, metal and cable industries, consumer goods, cigarette, pharmacies and home appliances, electronics, investment companies, banking, insurance, multi-finance, and securities. PT Astra International Tbk leads the way to top the list in the category of multifarious industries which saw 30 major players trailing behind it. Astra recorded a spectacular 179.89 percent growth in equity return (ROE) between April 2008 and March 2009. In the sector of agriculture, PT Charoen Pokphan Indonesia Tbk tops the list with 19 other major players under its spectacular performance. Its return on equity stood at 73.83 percent during the same period. In the sector of food and beverages, PT Mayora Indah Tbk defeats Indofood Sukses Makmur and other such major players to top the list. Relying on its snack products, Mayora Indah registers a 34.62 percent growth in sales for three successive years to produce a net earning of per share (EPS) of Rp485. In the sector of cigarette, pharmacies, and home appliances, PT Kalbe Fama tops the list after outmatching Unilever Indonesia which occupied the top position last year. In the sector of property, PT Alam Sutera Realty Tbk leads the way outperforming at least 20 other major performers. In textile and garment, Delta Dunia Makmur leads the way followed by Polychem Indonesia, Pan Brother, Apac Citra Centertex, and Argo Pantes. Under them there are 18 other major players. In the sector of infrastructure, as always, PT Jasa Marga (per-

Agung Industri Pulp & Kertas, and Toba Pulp Lestari. In property and building construction category, Alam Sutera Realty tops the list, followed by Jakarta International Hotels & Development, Wijaya Karya, Adhi Karya, duta Kraha Indah, Bakrieland Development, Bukit Darmo Property, Bumi Serpong damai, Lippo Cikarang, Summarecon Agung, Total Bangun Persada, Pakuwon Jati, Lippo Karawaci, Ciputra Property, Ciputra Development, Ciputra Surya Tbk, and 31 other major players.

sero) Tbk registered 17.36 percent growth in sales over the past three years and its net operating margin was 41.07 percent while its ROE stood at 14.43 percent while its net operating income for the past three years stood at 23.18 percent.

In the sector of restaurant, hotel and tourism, Pudjiadi Prestige tops the list followed by Pembangunan Jaya Ancol, Bayu Buana, and 19 other major players including Hotel Sahid Jaya International and Plaza Indonesia Realty.

On top of the list is actually Perusahaan Gas Negara Tbk which registered a sales growth of 39.65 percent, net operating margin 42.59 percent and ROE at 66.24 percent. Below them were Indika Energy, Bakrie Telkom, Trada Maritime, PT Telkom, Panorama Transportasi, PT Indosat, and 21 other major players. In the sector of trade, United Tractors Tbk tops the list with a three-year sales growth of 30.27 percent, net operating margin at 17.68 percent, ROE at 30.57 percent, asset turnover at 1.24, net three year operating profit at59.02 percent and dividend per share at Rp220 which derives from an earning per share of Rp1,147. Below this top performer were such companies as AKR Corporindo, Ancora Indonesia Resources, Dayaindo Resouces International, Latan Luas Tbk and 36 other major players including Intrace Penta, Matahari Putra Prima, Ramayana Lestari Sentosa and Mitra Adiperkasa. In the sector of basic and primary industries, PT Tambang Batubara Bukti Asam tops the list with three-year sales growth of 38.56 percent, net operating margin at 39.66, return on equity at 1.26, growth in three year operating profit growth standing at 85.63 percent and an earning per share at Rp1,184. But a more spectacular performance was given by PT Indo Tambangraya Megah Tbk which though ranked second, managed to register a spectacular three year sales growth of 35.58 percent, with its net operating margin standing at 28.89 percent, ROE at 44.78 percent, asset turnover at 1.29, three year operating profit growing 96.71 percent, equity dividend at Rp2,670 and EPS at Rp2,820. The third place was occupied by PT Adaro Energy Tbk followed by PT Holcim Indonesia, PT Timah Tbk, Sorini Agro Asia Corporindo, Elnusa, Se-

In electronics, Astra Graphia tops the list, followed by Metrodata Electronics, Centrine Online, Dyviacom Intrabumi, Indoexchange, Leo Invetsments, Limas Centric Indonesia, Myoch Technology, and Sat Nusapersada Tbk. WAIT AND SEE: In 2014 it is likely that market volatility will become a dominant factor causing public investors to take a wait-and-see attitude prior to the election of Indonesia’s next president.

men Gresik, Indocement Tunggal Perkasa, and 34 other major players.

In the sector of investment and other businesses, Polaris Investama tops the list with three year sales growth standing at 59.79 percent, net operating margin at 39.45 percent, ROE at 3.95, asset turnover at 0.13, and its three year growth in operating profit stood at 314.12 percent.

In the sector of metal and cable industries, Jaya Pari Steel tops the list followed by Indal Aluminium Industry, KMI Wire and Cable, Alumindo Light Metal Industry, and 15 other major players. Jaya Pari Steel registers a three year sales growth of 12.61 percent, with its net operating margin standing at 6.70 percent, return on asset at 0.71 percent, asset turnover at 0.80 percent, and three year growth of operating performance at 12.53 percent. Under PT Mayora Indah Tbk which tops the list in the category of food and beverages were Indofood Sukses Makmur, Akasha Wira International, Ultrajaya Milk Industry, Aqua golden Mississipi, Cahaya Kalbar, Davomas Abadi, Delta Djakarta, Multi Bintang Indonesia, Prashidha Aneka Niaga, Sekar Laut, Siantar TOP Tbk and Tiga Pilar Sejahtera Food Tbk. Under Kalbe Farma, which tops the list in the sector of cigarette, pharmacies, and home appliances, were Unilever Indonesia,Gudang Garam, Mustika Ratu, Tempo Scan Pacific, HM Sampoerna, and nine other major players including PT Kimia Farma Tbk, Bentoel International Investama, and Indofarma Tbk.

Market analysts believe that these companies have performed well during the past three years due to various factors. including political stability, business and legal certainty, as well as improvement in the climate of the macro-economic sector.

Under Polaris in this category of top performing listed companies were such players as Multipolar Tbk, Indosiar karya media, Lippo Securities, Tempo Inti Media, Star Pacific, Abdi Bangsa Tbk, Alakasa Industrindo, Arthavest, Bakrie & Brothers, and 15 other major players including First Media Tbk, Matahari Department Store, and Sinarmas Multiartha Tbk. In the sector of Banking, Bank Mandiri tops the list with three year sales growth standing at 10.31 percent, net operating margin at 27.27 percent, ROE at 21.94 percent, asset turnover at 0.10, three year growth of operating profit standing at 62.80 percent, and dividend per share at Rp107.81 and EPS at Rp341.72. Under this bank were Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Central Asia (BCA), Bank CIMB Niaga, Bank Danamon, Bank Panin, and Bank International Indonesia (BII). They are banks with market capitalization exceeding Rp10 trillion. In the subcategory of banks with market capitalization up to

Rp10 trillion, the top performer was Bank Tabungan Pension Nasional (BTPN), which registered three year sales growth of 46.69 percent with is net operating margin standing at 15.94 percent, ROE at 23.00, asset turnover at 0.22, three year growth in operating profit at 41.86 percent and an EPS of Rp445.00. Below this were Bank Himpunan Saudara 1906, Bank Bukopin, Bank Victoria International, Bank Permata, Bank Bumi Arta, Bank Artha Graha International, and 14 other banks including Bank Mayapada, Bank Mega, and Bank Tabungan Negara (Persero). In the sector of securities and mutual funds, Kresna Graha Sekurindo tops the list with 48.36 percent of sales growth in three years, while its net operating profit stood at 22.34 percent, ROE at 10.16, and three year growth in operating profit at 67.97 percent. Below this were such major players as Panin Sekuritas, HD Capital, Asia Kapitalindo Securities, JJ NAB Capital, Panca Global Securities, Reliance Securities, Trimega Securities and Yulie Sekurindo. In the sector of forestry industry, Tirta Mahakam Resources tops the list, followed by Suparma, Sumalindo Lestari, Fajar Surya Wisesa, Indah Kiat Pulp & Paper, Kertas Basuki Rachmat, Tjiwi Kimia, Surabaya

Panin Life Tbk tops this year’s list of top performers in insurance business followed by Asuransi Multi Artha Guna, Asuransi Harta Aman Pratama, Panin Insurance and seven other major players including Lippo General Insurance. In the category of multifinance, Verena Oto Finance Tbk tops the list followed by Clipan Finance Indonesia, Wahana Ottomitra Multiartha, Buana Finance, and eight other major players including Central Omega Resources. Market analysts believe that these companies have performed well during the past three years due to various factors. including political stability, business and legal certainty, as well as improvement in the climate of the macroeconomic sector. The analysts say that between now and 2014 before the next change in national leadership, domestic portfolio investment will continue to soar with public investors making use of every opportunity to accumulate returns on equity. In 2014 it is likely that market volatility will become a dominant factor causing public investors to take a wait-and-see attitude prior to the election of Indonesia’s next president. So, if you wish to bag a lot of fortune through portfolio investments, now is the time to do it. Likewise, these top players in the 18 sectors of portfolio investments will continue to grab whatever opportunity that emerges before political jolts alter their plans.

Indonesia’s Top Listed Companies Show Solid Growth This Year from page C1

growth in operating profit for the past year, and liquidity of the equities. Assessment of financial ratios such as NM, ROE and ATO was based on the listed companies’ financial reports of 2009; for technical performance assessment, the basis was the companies’ financial data of the April 2009-March

2010 period. Assessment of the performance of the listed companies was based on assessment of each of the selection criteria. In the final analysis, technical performance was measured by three yardsticks— stock returns over the past year, volatility of stocks, and liquidity aspect. The other criteria pointed to fundamental performance. The final score was derived from combination of the two groups of determinants. Based on such selection procedures, Indonesia’s Top Perform-

ing Listed Companies for 2010 were defined by Investor magazine as follows: The magazine made special mention of two outstanding companies, namely PT Bank Rakyat Indonesia (BRI) Tbk and PT Telekomunikasi Indonesia Tbk. BRI is known as the main player in the provision of small-scale loans which as of 2010 stood at Rp245.68 trillion, meaning an expansion of 20-25 percent from its performance in 2009. With that target, BRI’s a net

The strong presence of multinational companies on the Indonesian Stock Exchange testifies to one simple reality that Indonesia is now a good destination for both direct and portfolio investments.

profit for this year is expected to grow 15% from the previous year’s total. This bank will continue to provide up to 80 percent of its loans for small and medium-scale enterprises (SMEs) meaning only 20 percent of loans going to big corporations. Likewise, PT Telekomunikasi (Telkom) Indonesia is expanding with several new services such as fixed wireless (Flexi) and its Speedy broadband Internet facility. It is expected that Telkom will exceed its revenue target from

these lines of services by the turn of the year. Market analysts believe that the performance of these listed companies will become even better in the years ahead due to improved global and local market condition in spite of occasional jolts on the political front. By now international public investors have learned the good lesson that Indonesia’s democracy has ushered in new waves of transparency which force cor-

porations, especially listed companies, to put their cards on the table in dealing with stockholders. In that way their financial performance now reflects their actual condition— unlike in the past when such figures were the result of financial engineering. The strong presence of multinational companies on the Indonesian Stock Exchange testifies to one simple reality that Indonesia is now a good destination for both direct and portfolio investments.

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November 12, 2010 C3

Capital Market Top Listed Companies Also Role Models in Respective Fields By Widya Sanjaya

Photo: www.matanews.com

The performance of a number of publicly listed companies on Indonesia’s Stock Exchange needs to be applauded for the reason that these companies in fact surpassed their own targets over the past three years.

ank Mandiri Tbk, for example, bagged a net profit of Rp7.16 trillion as of the end of 2009, an increase of 34.7 percent from its performance in 2008. This bank is looking east, with the opening of new branches in Papua and other places across this vast archipelago. As of 2009, Bank Mandiri’s NPL stood only at 0.42 percent net, a drastic decline from 17.8 percent in March 2005. This is due to restructuring process that eliminates inefficiency and promotes its profitability. Another listed company with outstanding performance is PT Charoen Pokphand Indonesia Tbk which registered 535 percent increase in profit—thanks to its rigorous expansion and returns from the sales of animal feeds, day-old chickens, and processed chicken meat. This integrated poultry-related company controls up to 35 percent of animal feeds market inside Indonesia. It registered a net operating profit of Rp1.612 trillion in 2009, up from only Rp253 billion in 2008. With that its earning per share also rose to Rp491 meaning that is consolidated year on year profit was 535 percent, up from only Rp77 per share in 2008. as of December 2009, its total sales stood at Rp14.56 trillion. PT Astra International Tbk is a major player in the field. By the end of 2009 its total group sales stood at Rp98.52 trillion, only a slight increase from the previous year’s performance which registered Rp97 trillion in sales. Net operating profit also rose slightly by 9 percent to Rp10.04 trillion compared to the previous year’s total. But one important aspect to note is that its net profit from automotive sales and financial services rose 7 percent to Rp4.1 trillion in 2009 despite weak domestic demand at that time. PT Jasa Marga Tbk is another top performer to talk about. Throughout 2009 Jasa Marga managed to bag a total net profit of Rp992.69 billion, or up by 41 percent from its performance in 2008 when it bagged only Rp707.79 billion. This rise in net profit is due to an increase by 10 percent in its total corporate earnings from its records in 2008. As of March 2008, Jasa Marga’s earnings stood at Rp3.35 trillion, rising to Rp3.69 trillion in 2009. This increase is due to an increase of 4.14 percent in the traffic of various types of vehicles passing through its toll roads. In 2008 vehicles passed its toll roads 880.057 million times and in 2009 the figure rose to 916.48 million. With all these, the company registered an 18 percent growth in net operating income and an EBITDA of 23 percent. PT Mayora Indah Tbk is another success story to tell. In facing volatile prices of its raw material, the company was willing to reduce its profit margin in order to maintain market share. In this way its net profit soared by 89.65 percent to Rp372.16 billion in 2009 from Rp196.23 billion the previous year. This was also caused by a spectacular increase in sales in 2008 and 2009. In 2008 its sales were recorded at Rp3.9 trillion soaring to Rp4. trillion the following year. Mayora’s products are now

As of 2009, Bank Mandiri’s NPL stood only at 0.42 percent net, a drastic decline from 17.8 percent in March 2005. This is due to restructuring process that eliminates inefficiency and promotes its profitability.

available in Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Singapore, Hong Kong, Saudi Arabia, African countries, the United States, and Italy. PT Kalbe Farma Tbk is also a good role model to adopt. In 2010 Kalbe expects to see its sales soar by 15 percent especially because of its 15-20 new products entering the market before the turn of the year. For this year, the company has allocated Rp500 billion as capital expenditure, out of which some Rp100-200 billion will be spent on development of new products and Rp300 billion will be for maintenance and rejuvenation of facilities. Kalbe’s net profit soared 31.43 percent in 2009 to Rp929 billion from Rp707 billion the previous year. Before the turn of the year 2010, Kalbe expects to bag 20 percent increase in net profit. Another major performer is PT Bank Tabungan Pensiun Nasional Tbk. The focus of its market strategy is quite unique—pensioners and micro-businesses. Yet in this way the company managed to channel out a total of Rp17.7 trillion in loans during the first quarter of 2010, an increase of 1 percent from the same period last year. Its non-performing loans were kept under control at 0.64 percent gross and 0.6 percent net. Its deposits soared 45 percent to Rp20.2 trillion before floating its new bonds worth rp750 billion in May 2010. This bank was established in Bandung back in 1958 with the name of Bank Pegawai Pensiunan Militer (a bank for retired military workers). It changed its name in 1986 into what it is using now but only in 1993 did it get the license to operate as a public bank. In 2008 it sold 28.3 percent of its ownership through public offering and on 14 March that year TPG Nusantara acquired 71.6 percent of its shares to become the controlling owner since. Another valuable lesson can be learned from PT Kresna Graha Sekurindo, which is small in size but big in profitability, according to the Investor magazine which conducted annual rankings of Indonesia’s top performing listed companies. Its competitors are Panin Sekuritas and HD Capital. Though it is not as big as Panin Sekuritas, Kresna was very good in sales growth and well as the growth in its net operating income. PT Alam Sutera Realty Tbk underwent a similar experience. Even though it was listed on Indonesia Stock Exchange only on December 17, 2007, it really performed so well in terms of financial health. Annual returns stood at 229.38 percent thanks to very high liquidity which encouraged many public investors to grab its stocks. PT Panin Life Tbk is yet another good story to relate. Its net sales soared to Rp2.075 trillion, up from Rp1.228 trillion in 2008. With that its asset value also soared to Rp7.1 trillion in 2009 from Rp5.9 trillion the previous year. Net operating profit was secured at Rp465.t billion in 2009, up from Rp367.1 billion the previous year. As of February 4, 210, this company has changed its name to PT Panin Financial Tbk. Its core business—life insurance—was then handed over to PT Anugerah Life, a subsidiary owned 99.9 percent by Panin Financial.

Bank Mandiri Tbk bagged a net profit of Rp7.16 trillion as of the end of 2009, an increase of 34.7 percent from its performance in 2008.

One more big name to mention is of course PT Astra Graphia Tbk., which registered very satisfactory performance over the past three years. Unlike other listed companies which experienced declines due to global financial crisis, this company registered consistent gains. In 2009 its net sales stood at Rp1. 3 trillion, up from Rp1.0 trillion in 2008. Net operating profit also rose as a result to Rp66.9 billion from Rp62.5 billion in 2008. The company’s loss resulting from currency exchange dropped to Rp7.4 billion from Rp16.7 billion in 2008. Likewise, the load of interest payment also declined to Rp16.87 billion from Rp18 billion in 2008. Meanwhile, its debt obligation also declined 22.48 percent to Rp393.9 billion from Rp508.18 billion in 2008. This decline is due to acceleration of its debt repayment by Rp90.79 billion or 17.86 percent of the total obligation in 2008. Over the past three years we have seen PT Pudjiadi Prestige Tbk making slight improvement in its overall performance. Its total 2009 sales soared to Rp56.3 billion from Rp49.2 billion in 2008.Net operating profit thereby grew to rp6.5 billion from a mere Rp3.9 billion the previous year. Corporate assets also improved a bit in value to Rp266 billion from Rp254.9 billion in 2008. This company specializes in developing apartments, hotels, and condominiums in Indonesia’s big cities. Among its landmark projects are Hotel Sol Elite Marbela in Anyer, West Java, Marbela Kemang Residence in Jakarta, Marbela Dago Pakar Resort Hotel and Apartment in Bandung, and Makassar Lagoon Hotel and Apartment.

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C4 November 12, 2010

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Technology Enhancing Its Email Services:

Plasa.com Collaborates with Microsoft By Jeannifer Filly Sumayku

Photo: The President Post/Nandi Nanti

The cooperation is expected to bring more convenience for around 8 million Plasa.com subscribers to always connect and manage all the activities in their lives online, especially for about 500 thousand of its active email users.

icrosoft Indonesia and Plasa. com have signed a strategic partnership that marks the cooperation between two companies to improve Plasa.com services to its subscribers. Microsoft will support Plasa. com features with secure application platform, Windows Live™ software. Through the strategic partnership, Plasa.com and Microsoft will present a compelling faster online shopping experience; latest information updates, special offers and other advantages to Plasa.com users. The Plasa.com users are given the email facility with @plasa. com address, and equipped with features and technology from Windows Live, such as Messenger, job applications, as well as photo repository. The email service as the results of this cooperation will provide 25 GB storage capacity. The cooperation is expected

to bring more convenience for around 8 million Plasa.com subscribers to always connect and manage all the activities in their lives online, especially for about 500 thousand of its active email users. Windows Live is not just a web-based services but also programs for PCs and mobile services like cellular phones. Plasa.com was founded back in March 2010 by PT. Telekomunikasi Indonesia, Tbk (TELKOM) and is intended to be the E-Commerce site. Realizing the opportunities of E-Commerce development in Indonesia and the national need for empowering business and entrepreneurship, Plasa.com is ready to provide a platform for trade and communication. To address consumers’ concerns in shopping online, Plasa. com is committed to ensure safety online transactions by positioning themselves as ‘Indonesia’s Most Trusted Online Store’. “We are very pleased that Plasa. com became one of the largest ecommerce sites that takes advantage of the latest version of Win-

dows Live software in Indonesia,” said Brad Brooks, Corporate Vice President, Windows Consumer, Microsoft Corporation. Plasa.com realized that technology developments will enable the exchange of information without limits. It is one of the first local social networking sites that allow customers to communicate to any email address. “In 1998, Plasa.com has been a trusted provider of local e-mail service to millions of customers. Over time, the Internet allows people to communicate more frequently and at any time,” said Shinta W Dhanuwardoyo, the CEO of Plasa.com. She added, “The need to communicate with each other, including in particular community, becomes inevitable. We believe Plasa Mail updates enable exchange and communication between communities in more efficient and effective ways. We added new features to improve services to Cloud Computing Technology.” Windows Live applications are

The signing was made by CEO Plasa.com Shinta W Dhanuwardoyo and President Director Microsoft Indonesia Sutanto Hartono at the Ritz-Carlton Ballroom Hotel Pacific Place – Jakarta.

easy to use and familiar to anyone using the Windows operating system or Microsoft Office software. In addition, Windows Live makes communication easier and faster. These include the ease and speed when we use a va-

riety of services and the exchange of large image files, editing and social networking feeds. The number of sites in Indonesia is growing rapidly. The intensity of Indonesian Internet penetration continues to increase

The 1st One Stop TV and Film Industry Center in Indonesia. Indonesia Movieland is PT. Jababeka’s vision of the future of Indonesia’s TV broadcast and film industry. Capitalising on PT. Jababeka’s corporate spirit of being a pioneer in the industrial sector since 1989, we seek to contribute to the establishment and development of Indonesia creative industry sector. Our focus is on the TV broadcast and film industry.

Indonesia Movieland is envisioned to be “the 1st one stop film and TV industry centre in Indonesia”. It is a fully integrated movie industrial estate using all facilities available in 5600 ha Kota Jababeka, with approximately 40 ha is dedicated for movie industry activities. As such, it will provide the facilities and resources needed to bring Indonesia’s TV broadcast and film industry to greater height.

along with the development of infrastructure that supports it. There are many international sites that are accessed daily and become a lifestyle, for example MSN.com, Bing, Facebook, Twitter and email.

The signing was made by CEO Plasa.com Shinta W Dhanuwardoyo and President Director Microsoft Indonesia Sutanto Hartono at the Ritz-Carlton Ballroom Hotel Pacific Place – Jakarta.

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November 12, 2010 C5

Pictorial Events Breakfast Dialogue at The Financial Club Jakarta

Banten 10th Anniversary

Text & Photos by Nandi Nanti

Breakfast Dialogue with Rudy Persik, CEO of PT Birotika Semesta (DHL) and CEO of Pinter Group (Pesik International) at the Financial Club Jakarta. The subject is “Indonesian Business: How to Compete in the Global Era”. Present at the breakfast were prominent businessmen and professionals, among others, DR. Karan Singh BA, Atmono Suryo, Giuseppe Nicolosi and others.

Hj. Ratu Atut Chosiyah, Banten Governor hand over an award to SD. Darmono - representing PT. Banten West Java who has participate in the development of Banten Province. The award was given for continuous efforts to develop Tourism Regions Tanjung Lesung Beach Resort since 2000. An area of 1500 ha has been designated as a Strategic Tourism Regions of Pandeglang County and Banten Province as well as the strategic plan of Ministry of Culture and Tourism RI Year 2010-2014. It will be prepared as a tourism destination that has global competence.

The Rising Power of Indonesia Incorporated Text & Photos by Nandi Nanti

“The Rising Power of Indonesia Incorporated” was held by Global Nexus Institute at the Ritz Carlton Hotel, Jakarta, October 20, 2010. The speakers at the forum were Mahmuddin Yasin, Ian Bremmer, Chairul Tanjung and Christianto Wibisono as the moderator. The event was officiated by Minister of Cooperatives and Small Medium Enterprises Syarifudin Hasan. The event was participated by public figures and businessmen such as Juwono Sudarsono, S.D. Darmono, Hartati Murdaya, Theo L. Sambuaga, Sofyan Djalil, Rudy Pesik, AB Susanto, John Prasetyo and others.

The 9th Asia Pacific Mining Conference and Exhibition Text & Photos by Nandi Nanti

The 9th Asia Pacific Mining Conference and Exhibition was held at the Shangrila Hotel last October. The event was opened by Darwin Zahedy Saleh, the Minister of Energy and Mineral Resources. National and international mining industry players such as Sandiaga Uno, Alwin Syah Loebis, Tony Wenas and other took part in the conference.

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C6 November 12, 2010

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Travel Unity in Diversity UBUD WRITERS & READERS FESTIVAL 2010:

By Jeannifer Filly Sumayku

“Unity in Diversity” or Harmony in Diversity is the theme of the Ubud Writers and Readers Festival (UWRF) 2010.

he event was first implemented in 2004 as one of the ways to help Bali recover from the bombings in 2002. According to the Festival Director and Founder Janet De Neefe, this year’s theme “Harmony in Diversity” was chosen because the process of finding harmony in diversity still continues in many places. From Bali, she hopes, the process may take place in the form of dialogues full of the spirit of peace. This year’s UWRF is the seventh time and was opened by Governor of Bali Made Mangku Pastika. At the Gala Opening, former president Abdurrahman “Gus Dur” Wahid was awarded on for promoting pluralism in Indonesia. Greg Barton, a professor from Monash University, Australia, in his speech said that Gus Dur is a unique figure with an advanced mind. According to Barton, Gus Dur is eligible to become a symbol of Indonesia’s national motto: Harmony in Diversity (Bhinneka Tunggal Ika). Barton also wrote the biography of Gus Dur. Senior Indonesian poet Sitor Situmorang was awarded the Saraswati Literary Award for Lifetime Achievement. The award for Sitor is a tribute to Indonesian authors that has

enriched world literature. “His life journey and struggle have made him a a role model for young writers,” said De Neefe. Sitor is a famous writer of the 1945 generation. One of his phenomenal essays is Sastra Revolusioner (1965), which led him to be imprisoned in the House of Detention in Salemba, Jakarta, during 1967-1975. The essay was viewed as a critique on powerholders. While in prison he produced two books, namely Dinding Waktu (1976) and Peta Perjalanan (1977). Sitor was surprised by the award because, as he said, “it means there are those who still remember me.” “It’s not too early but not too late for me,” said the poet, who is now 86 years old. He hopes the award will motivate him to keep on writing. A number of world authors from various countries such as China, Malta, Djibouti, Israel, India, Sri Lanka, Vietnam, Singapore, France, Bosnia, Turkey, South Africa, Australia, Ireland, the United States and Canada took part in the festival, which included 15 Indonesian writers. Over time, UWRF has reinforced the existence of Bali, especially Ubud, as a center for arts and a place to spread the seeds of

peace and tolerance throughout the world. In recent years, UWRF strives to be a vehicle for Indonesian young writers to introduce their creations at the international stage. The festival took place in about 50 locations such as restaurants, hotels, and cultural centers scattered in Ubud, Bali, Seminyak and Jimbaran, Bali. The programs are: Panel Discussions This program, which consists of discussion sessions and was filled by invited authors, is the high point of the event. They discussed about 10 different topics each day. Each discussion has a duration of 60-90 minutes and involved 3-5 authors. Discussions were held at three places from 9:00 to 17:00 pm all at the same time at Indus Restaurant, Leftbank, and Neka Museum Ubud. Workshops Various interesting and useful workshop themes were provided for writers, starting from how to write a blog for beginners, writing fiction for young adults, travel writing to cultural workshops such as Vietnamese cooking class and batik workshop. Free Events Not all programs require visitors to purchase tickets. There were various options that do not

ABOVE: Festival Director and Founder Janet De Neefe RIGHT: Senior Indonesian poet Sitor Situmorang was awarded the Saraswati Literary Award for Lifetime Achievement.

Over time, UWRF has reinforced the existence of Bali, especially Ubud, as a center for arts and a place to spread the seeds of peace and tolerance throughout the world.

charge an entrance fee, such as tribute night, night performances, book launches, poetry and short stories readings, movie screening and others. Special Events Special events were charged because they are exclusive, such as Literary Lunch, Cocktail Party, Literary Dinner and others. The events were like talk shows between prominent authors and their fans in high-class hotels. Children’s Programs Citibank-Ubud Writers and Readers Festival is also a place for family education entertainment. There were 15 free workshops for children starting from kindergarten to high school. This program was aimed to stimulate children’s creativity. Other Events Fans of art and culture may also show their creative works. 3-5 persons were given the opportunity to read their own poems during panel discussions or other events. Besides panel discussions there were book launches, entertainment, and many performances that provide the opportunity for participants to familiarize themselves and exchange information. UWRF is a major program of the Mudra Swari Saraswati foundation which is independent, non-profit, and non-governmental. The members of the Foundation are committed to enriching the lives and livelihoods of Indonesians through the development of a range of community-building arts and cultural programs. The primary goal of the Foundation is to give full expression to the creative needs of individuals and the community in order to better equip them to interact in our rapidly changing global society. Through its revenue from ticket sales to events and workshops, the Festival provides the Foundation with vital support to pursue its creative, educational and youth mission. The Festival helps to promote Ubud as an arts and cultural centre, showcases Indonesian writers on an international stage and helps young Indonesians to reach their potential through educational programs and literature. Proceeds from ticket sales are also used to cover free public evening events, free workshops for local children and high school students and their teachers and to subsidize attendances of local residents who could not otherwise afford to attend.

TOP LEFT: The event was opened by Governor of Bali Made Mangku Pastika. LEFT: Famous writer Dewi Lestari and husband Reza Gunawan also took part in the festival ABOVE: Dancers perform at the Opening Ceremony. BOTTOM: The Gus Dur Tribute.

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November 12, 2010 C7

Living Let’s face it–the new “science” of infidelity is just not very scientific. It certainly provides a convenient “out” to deny personal responsibility, but anyone who buys this “science” is missing out on the best parts of being human: the freedom that comes from self-control and the intimacy that can only come with commitment.

n recent weeks, a series of CNN articles have appeared purporting to get to the bottom of male infidelity. “Men More Likely to Cheat on Women With Bigger Paychecks,” one headline informs us; yet in the body of the article we are told that the opposite is true as well: “A man who makes significantly more money than his girlfriend or wife is also more likely to cheat.” It’s a bit bewildering, keeping track of all the things that could cause a man to be unfaithful. Earn too much and he might cheat, but earn too little and he might cheat then, too. Association is not the same as causality, but news outlets have latched on to this anyway as the reason actress Sandra Bullock was betrayed; high-and-lowearning ladies everywhere had better beware. This article and others like it that surface in the media every so often amount to something of a cottage industry in the justification of male infidelity. Scratch the surface of any of them and

Photo: www.frms.us

We Strive for Money Over Time—It’s a Mistake

Is infidelity natural? It’s a bit bewildering, keeping track of all the things that could cause a man to be unfaithful. Earn too much and he might cheat, but earn too little and he might cheat then, too.

you get a phenomenon of male entitlement that is oddly abetted by some women. For example, if you thought that the man himself had anything to do with it, former “sugarbabe” and mistress Holly Hill explains otherwise in an article that ran a few weeks ago: “Men are hardwired to betray women on the long-term.” In this view, man is but a victim of faulty “wiring” -- although the wires evidently worked well enough to fund her “sugarbabe” business. But the real eye-opener was psychologist Christopher Ryan’s CNN.com essay, “Monogamy unnatural for our sexy species.” We are, he points out, “the

most sexual species on earth.” At first I was confused about why this sexuality can only be expressed via multiple partners, but then I got to the part about the “Bonobos [who] famously enjoy frequent group sex that leaves everyone relaxed and conflict-free.” And who, really, can argue with that? All I ask, as a woman, is for consistency. When we turn to the bonobos to be our guides, let’s not be quite so selective about the take-home message. Let us try to examine every species more thoroughly. Ryan claims that, since the male organ is “the longest [and] thickest,” we cannot deny the ev-

idence that “prehistoric promiscuity” is part of our primate inheritance. Yet this fascinating investigation is cut short. If we continue traveling further upwards, we discover that a man’s arms are also generally longer and thicker than a woman’s. From a strictly scientific standpoint, here we see a strong indication that a man is evolutionarily adapted to give out more back rubs than he gets. Sure, today an individual man can refuse a request for a massage, but when the next wave of natural selection works its magic, he may find that his massage-phobic genes are out of the running. Once at the Toronto Zoo, my

family witnessed a male orangutan picking nits off his baby’s hair, while the female lolled about peacefully, grooming herself under a tree. Can there be any clearer precedent, from an evolutionary perspective, for men to scrape the dinner plates while women get manicures? Let’s face it–the new “science” of infidelity is just not very scientific. It certainly provides a convenient “out” to deny personal responsibility, but anyone who buys this “science” is missing out on the best parts of being human: the freedom that comes from selfcontrol and the intimacy that can only come with commitment. (CNN)

An old cliché says time is money. A newer cliché, from Oliver Stone, says money never sleeps — which is essentially the same assessment as the older one. But why are we pretending there’s a contest here? We like what money can buy, but virtually all the research on what makes people happy shows that time matters more than money — not only in the long term but also in the short term. Now a new study shows that time matters more than money even when you live below the poverty line. The new paper, which was published by the Association for Psychological Science and written by a young Wharton School instructor, Cassie Mogilner, begins by reminding us that older Money is all studies have found a weak reabout utility: it lationship between wealth and happiness — so much so that we is survival. But have a cultural trope in the sad time is about old rich lady. Then Mogilner notes that alemotional though Europe consistently perinvestment. forms worse economically than the U.S., the E.U. consistently performs better in surveys on happiness. (Please insert your best joke here about Europeans drinking too much and working too little.) As Mogilner writes: “Work is necessary to pay the bill and contributes to an individual’s sense of productivity and self-esteem, but the number of hours Americans spend working frequently exceeds that required to provide these benefits.” Money is all about utility: it is survival. But time is about emotional investment. In psychological studies of why people donate to charity, the mere mention of money makes people less likely to help. If you ask people to donate time, they may not do it — but they don’t become more stingy. Mogilner found that these same findings held among a population of 76 people who met the 2009 definition for poverty set by the federal government. Which is remarkable: if you qualify for the federal definition of poverty, you almost certainly worry about making sure your family can eat every day. But even then, most people time to be more valuable than money. One flaw in the study is that it may not consider the middle class: if you are very rich or very poor, money may be less valuable than when every bill just balances every month. Money, in that case, can be harmony: a perfect bill-balancing act. Time — well, that’s what weekends are for. (Time.com)

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C8 November 12, 2010

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Health Photo: www.healsonwheelscollective.com

NEW WAYS TO SURVIVE

Cardiac Arrest

By Dr. Sanjay Gupta

The No. 1 thing that has been shown to make a difference is the action of a bystander. If a passerby jumps in and gives CPR, the likelihood of survival rises significantly.

am going to let you in on a secret: When a person’s heart stops beating, it’s not the end. Contrary to what you may think, death is not a single event. Instead, it’s a process that can be interrupted. A person’s life can slip away in a few minutes. Without a heartbeat, circulation slows to a halt. Blood no longer flows to the organs, and the brain is the first one to suffer. In normal times, the brain, which constitutes 2 percent of our body mass, consumes about 20 percent of the oxygen the body takes in. After 10 seconds without oxygen, the brain’s functions slow. Without oxygen or signals from the brain, other organs begin to break down. Diaphragm muscles no longer contract and release to bring in air. The kidneys stop filtering blood. At the same time, an elaborate chain reaction triggers a breakdown in cells throughout the body. Scientists and physicians are now learning that this process can be reversed. When it comes to cardiac arrest, however, the chances of surviving an episode outside a hospital are poor. Only 2 percent of victims pull through

without long-term damage. The No. 1 thing that has been shown to make a difference is the action of a bystander. If a passerby jumps in and gives CPR, as Corey Ash did, the likelihood of survival rises significantly. But if onlookers do nothing, those chances drop–fast.

Researchers say it’s not because people don’t want to help–it’s because they’re apprehensive about putting their mouths on someone else’s, especially if the person is dying. According to the American Heart Association, for every minute that goes by without someone attempting CPR, the survival rate decreases 7 to 10 percent.

Studies have found that bystanders perform CPR in only 20 to 30 percent of cases. Researchers say it’s not because people don’t want to help–it’s because they’re apprehensive about putting their mouths on someone else’s, especially if the person is dying. More than 15 years ago, cardiologist Gordon Ewy and researchers at the University of Arizona’s Sarver Heart Center were puzzling over how to get more people to give CPR. To simplify the method, they wondered what would happen if they advocated performing compressions without mouth-to-mouth respiration. After running successful laboratory trials, Ewy spoke to emergency-services directors in Arizona, Wisconsin, and Missouri. They were intrigued by his findings and agreed to promote the use of compression-only CPR among people in their states. They also implemented a protocol for their paramedics and firefighters that emphasized giving chest compressions with minimal interruptions to keep the patient’s blood circulating. The results were remarkable:

CPR Simulation: According to the American Heart Association, for every minute that goes by without someone attempting CPR, the survival rate decreases 7 to 10 percent.

Not only were survival rates for people who got only compressions just as good as those for people who got traditional CPR, they actually were better. Why was it so effective? Mouth-tomouth resuscitation supplies oxygen, which we need continuously. As it turns out, our bloodstreams contain plenty of oxygen at any moment. Even if we stop breathing, our oxygen levels remain normal for quite a while. If we do stop breathing, however, the sole way to make the oxygen circulate is by having someone pump our chests. In 2007, Japanese researchers revealed the results of a massive study on bystander intervention. They looked at cases where a person (not in a hospital) suf-

fered cardiac arrest in view of a bystander–and with his or her heart in a rhythm that would respond to a defibrillator. The survival rate was 11 percent for those who got standard CPR–mouthto-mouth plus chest compressions–before an ambulance arrived. The rate was 19 percent for those who got only compressions. The act of keeping oxygen circulating could increase a victim’s chances of surviving by as much as 70 percent. This is not a fancy technology born in a gleaming lab, yet it is one of the most significant recent breakthroughs in medicine. Because heart disease is the biggest killer in the United States, this simple act could save thousands of people’s lives every year.

Your overall cholesterol number should be under 200.

Dr. Elizabeth Nabel, director of the National Heart, Lung and Blood Institute at the National Institutes of Health in Bethesda, Maryland, says that over the years, it’s become clear to most American women that heart disease is nothing to ignore. It’s the leading cause of death of women in the United States, says Nabel, a prominent advocate for women’s heart health. But Nabel says many women still don’t know all the risk factors for heart disease, especially when it comes to cholesterol. “For middle-aged women, 40 to 60, high cholesterol is the single most important risk factor for heart disease and heart attacks,” she said.

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Peiffer didn’t think much about her cholesterol until nine years ago, when, at age 39, she began to feel ill during a water aerobics class. It got so bad she decided to drive home. The cough, she says, grew worse. “The coughing continued, but then I was coughing up this pink, frothy stuff, and I knew that wasn’t right.” Alarmed, Peiffer left her kids with her husband and drove herself to the hospital. But because of her age, doctors never considered that she might be having heart problems; they figured she had a virus and sent her home. But later tests showed that she had something wrong with her heart. Af-

disposition for high cholesterol, medication is usually prescribed. But cardiologists say many people think that because they are taking medication, they’re protected and don’t need to worry about their numbers. That’s just not the case. So what are good cholesterol levels? Your overall cholesterol number should be under 200. If you have other risk factors – like smoking, high blood pressure or a family history of heart disease – your doctor may want it lower. A good HDL level of 60 mg or greater is considered protective. LDL should be under 100 mg for those with no risk factors for heart disease and 70 mg for those at higher risk. But again, depending on your health and family history, your doctor may want different readings.

Get off the couch and get active. Even 30 minutes of moderate exercise, five days a week or more, can make a difference.

ter performing an angiogram, her doctors told her the bad news. “They told me I had a 99 percent blockage in my left main artery,” she said. “I needed openheart surgery.” Cholesterol comes from two sources: your body and your food. Your liver (and to a smaller degree, your cells) makes about 75 percent of blood cholesterol. The remaining 25 percent comes from the foods you eat. Cholesterol is divided into two main types. HDL, or high-density lipoprotein, is the “good” cholesterol because it helps to clear excess fats from the arteries. LDL, or low-density lipoprotein, is the bad cholesterol because it clogs the arteries, increasing a person’s risk for heart attack and stroke. The American Heart Associ-

ation says that in premenopausal women, estrogen tends to raise HDL (good) cholesterol. But as estrogen drops during menopause, HDL levels drop too, and LDL levels rise. That’s why women need to know their numbers. For years, physicians believed that hormone-replacement therapy was a good way to protect a woman’s heart. However, the heart association recommends that hormone replacement not be used for cardiovascular protection, because recent studies have shown that postmenopausal women using it received no real heart benefit. In some people, improving diet and adding exercise can lower the overall number, but when lifestyle changes don’t work and for people who have a genetic pre-

Back when I was in medical school, I learned that any damage to the heart from a heart attack was permanent. This past summer, Mayo Clinic researchers working on mice converted adult scar cells into stem cells, which they injected into damaged hearts. The cells restored heart-muscle performance, stopped the progression of damage, and regenerated injured tissue. Scientists at Mayo tell me this will soon be tested on humans.

Drug-releasing stents

People at risk for heart disease who have a blockage in the vessels supplying blood to their hearts may undergo an angioplasty to open the vessel. Afterward, doctors often insert a stent (a mesh tube) to continue holding the artery open. The newest stents serve a dual role: They also release medication that prevents scar tissue from developing.

CRP testing

You should have your cholesterol levels checked regularly. But you might also ask your doctor about getting your C-reactive protein, or CRP, checked. It is a marker for inflammation, a powerful risk factor for heart disease. Changes in diet and exercise can usually reduce high CRP levels.

Peanut Allergy Can be Deadly

Knowing Cholesterol Numbers Could Ward off Heart Disease hen 48-year-old Erin Peiffer, of Eldersburg, Maryland, learned that she had high cholesterol in her 20s, she never thought it would pose a problem. When she was 39, Erin Peiffer, now 48, had open-heart surgery to unblock her left main artery. Although her overall cholesterol number lingered in the low to mid-200s, she figured her medication would keep it under control. But she figured wrong, and heart disease slowly started clogging her arteries.

STEM CELLS

The National Cholesterol Education Program guidelines recommend that everyone age 20 and older get a fasting “lipoprotein profile” every five years. It gives your doctor information about total cholesterol, LDL, HDL and triglycerides, which are the main type of fat in blood. If your numbers are unhealthy, your doctor can advise you on treatment. If you want to avoid medication and try to achieve healthy cholesterol numbers naturally, the American Heart Association has these recommendations: • Keep your weight down, and cut down on calories, especially from saturated and trans fats, carbohydrates and alcohol. Even small amounts of alcohol can lead to large changes in triglyceride levels (although red wine may slightly bump up good cholesterol). • Eat plenty of fruits, vegetables and nonfat or low-fat dairy products. And add fish to your diet. Fish oil helps reduce cholesterol. • Get off the couch and get active. Even 30 minutes of moderate exercise, five days a week or more, can make a difference. (CNN)

eanuts are as American as baseball -- Americans ate nearly 1.7 billion pounds of them last year, according to the Georgia Peanut Council. But for those with peanut allergies, even 1/1,000 of a peanut can cause a severe reaction. The chicken that 15-yearold Robert Bigelow Rubin chose at a bar mitzvah because he thought it was safe was prepared with peanut oil. His night ended in the emergency room. “I couldn’t breathe, and then I started wheezing, and then they called 911,” he said. Food allergic reactions cause an estimated 30,000 emergency room visits and kill 150 to 200 people a year. Anaphylaxis, the massive allergic reaction triggered in some sufferers, can also be triggered by bee stings, latex rubber and even vigorous exercise. According to the Food Allergy and Anaphylaxis Network (FAAN), 11.4 million Americans have food allergies. Reactions can be triggered by even trace amounts of peanuts. “There are true risks when ... enough peanut protein is really being disturbed. So if people are cracking open peanuts, especially in a confined space, a waiting area of a restaurant, you could have a very severe reaction because there’s enough peanut airborne there,” said Dr. Robert Wood of Johns Hopkins University. A study by FAAN and the Mt. Sinai School of Medicine in New York showed the number of children allergic to peanuts doubled between 1997 and 2002. Many schools now reserve separate tables where no pea-

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nut butter is allowed. The medical community cannot fully explain the phenomenon. But there are theories. Noticing that developing countries have almost no allergy led doctors to suspect that our society is too germ-free. “As a country becomes more developed, allergy rises and rises. And the notion there is that in the more-developed countries, you may be getting less exposure to infections and germs and other things that may stimulate your immune system in a direction other than allergy,” Wood said. “The more your immune system is kept busy by exposure to germs and infections early in life, the less time it can devote to things like allergy.” Adding to the confusion is that in countries like Indonesia and Thailand, where peanuts are ubiquitous, there is virtually no peanut allergy, leaving the experts to concede they really don’t know for sure why food allergies are on the rise. Doctors can only prescribe avoidance For now there is no cure. Doctors can only prescribe strict avoidance. But that’s not easy as

so many candies might contain traces of peanuts inside. Epinephrine offers treatment for a reaction. Those with serious food allergies carry auto-injectors that contain epinephrine obtained by prescription that they can inject quickly to the thigh. Without epinephrine, these reactions can lead to a sudden drop in blood pressure or even death and it can happen fast. “People shouldn’t be dying of allergic reactions,” he said. “Because if you get epinephrine in a timely way after reactions, we can be very reassuring to our patients that they are not going to have a fatal reaction ... and timely means within a few minutes.” “You know quickly, typically, if you’re having an allergic reaction -- you get an immediate sensation in your mouth that you’ve been exposed to something,” Wood said. “So I knew it within seconds, literally.” A few minutes isn’t always enough. (CNN)