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RI Researchers Produce 10 New Rice Varieties The 10 new rice varieties are the result of research that had lasted between six to seven years. The Agriculture Ministry`s research and development agency has succeeded in producing 10 new rice varieties to be introduced in anticipation of the impact of climate change on food production. The agency`s head, B. Haryono, told newmen here last week that climate change currently had caused the emergence of unpredictable extreme weather both wet and dry besides causing pest attacks. “There is need for rice seeds which are resilient to drought, excessive water or attacks from planthopper pests,” said Haryono. The 10 new rice varieties are the result of research that had lasted between six to seven years. Three of the new rice varieties were named Inpara (water resilient), Inpago (drought resilient) and Inpari (pest resistant). Haryono added, in the last five years the agricultural research and development agency had produced a total of 31 new rice varieties. Since its establishment, the agricultural research and development agency has produced more than 200 superior rice varieties.

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Minister of Health in 2004-2009 attended the ground breaking of Medical City

Ministry of Health Reiterate the Business Opportunity in Healthcare Indonesians Spend $11 b on Overseas Healthcare Actually, the quality of domestic healthcare is not far different from that of foreign ones. However, most domestic hospitals still face many shortcomings in terms of health services and patients’ safety. JAKARTA (TPP) – Indonesia loses an estimated Rp 100 trillion (about $11 billion) in foreign exchange a year, as many of its citizens go abroad for healthcare, a Health Ministry official said. “According to the 2004 World Bank report, the amount of our foreign exchange spent on overseas healthcare was about Rp 70 trillion. If the report is true, the figure could now be more than Rp100 trillion per year,” Supriyantoro, the ministry’s director general of health effort development, said at the Gadjah Mada

University`s medical school here recently. “Most Indonesians who prefer overseas healthcare believe that the quality of foreign hospitals is far better than that of domestic ones,” he said, according to Antara. Actually, the quality of domestic healthcare is not far different from that of foreign ones. However, most domestic hospitals still face many shortcomings in terms of health services and patients’ safety, he said. “So the problem is not about

bad treatment but how to improve existing services,” he said. “The government has made various efforts to improve the quality of health services at each hospital. One of the efforts is encouraging hospitals to apply international quality standards,” he said. Yet, only four of about 1,500 hospitals across the country had applied international quality standards. One of them is Dr Sardjito hospital in Yogyakarta, he said. RI urged to build health tourism in facing ASEAN Economic Community in 2015 Indonesia needs to build a health tourism industry to promote health care services in the country, as it also faces the im-

pact of liberalization relating to the ASEAN Economic Community in 2015. “The government needs to maximize its competitiveness by synergyzing the potential of production factors into a lucrative business entity like building health tourism,” post-graduate teacher of the Economic Faculty of Universitas Indonesia Sjamsul Arifin said in a seminar on ASEAN Economic Community of 2015 here last week. He said three ASEAN countries provide health care services known as health tourism, namely Thailand, Singapore, and Malaysia. He said the mainstays of the special quality in the three countries are relatively low service cost, good service quality, and technol-

RI Upbeat Poverty Rate to Reach MDG-sanctioned Level The Social Affairs Ministry is optimistic Indonesia will be able to cut its poverty rate to 7.5 percent by 2015 in accordance with the Millennium Development Goals (MDGs), a spokesman said. “We believe the target is achievable as according to Central Bureau of Statistics (BPS) data the poverty rate today is around 13 percent,” Rusli Wahid, the ministry`s social empowerment and poverty eradication director general, said here recently. The ministry would intensify

the implementation of the poverty eradication programs among other things through the Family of Hope Program (PKH) and the Common Business Group Program (Kube), he said. The social affairs ministry had carried out the two programs for the past several years, including in a number of regions. “The poverty eradication program that we are implementing will last for six years and it has produced encouraging results,” he said.

The ministry has allocated funds amounting Rp1.6 trillion to address poverty in 2011 by helping around 1,116 very poor households in around 20 provinces. The money will also be used to help poor pregnant women and school-aged children. The six-year program is expected to cut off the poverty chains so that parents would not pass down their poor condition to their children, according to Rusli Wahid. The Kube program for poor families provides Rp 20 million

for each group consisting of 10 people. The Millennium Development Goals (MDGs) comprise eight goals that emerged from the 2000 Millennium Summit of world leaders in New York. Indonesia is one of countries which have committed to meeting the MDGs. The MDGs provide a set of time-bound and measurable targets for combating poverty, hunger, illiteracy, disease, discrimination against women, and environmental degradation.

INTERVIEW

BUSINESS

EYE WITNESS

INDUSTRIAL ESTATE

Mien Uno: Education and Social Manners

RI to Have Only 78 SOEs by 2014

Singapore’s Remarkable Public Transportation

Indonesia Plans More Industrial Zones to Meet Growing Relocation Demand

Widely recognized as a naster of etiquette and personal grooming, she is also a successful businesswoman and a passionate educator

PAGE A2

At present, Indonesia had 142 stateowned companies and the reduction of the number by half was a measure to make those companies world-class ones. PAGE B2

“We Keep Your World Moving”, the sentence is able to give us general picture of a city of pleasant urban planning, where the public transportation runs neatly, clean, and fast. PAGE B7

In order to properly accommodate industrial relocations, Indonesia needs to provide more industrial space complete with international-standard infrastructure. PAGE C1

BI: Economy to Expand 6.5 pct This Year The government needs to maximize its competitiveness by synergyzing the potential of production factors into a lucrative business entity like building health tourism. ogy of international standards. He noted that the Philippines and Indonesia are two of the biggest world exporters of nurses. “Medical personnel of the Philippines reached 87 thousand with main destinations Ireland, Kuwait, Libya, Saudi Arabia, the UK, and the US. Indonesian medical personnel abroad are mostly in the Middle East and ASEAN,” Sjamsul said.

Bank Indonesia (the central bank/BI) has predicted domestic economy may expand by a range of 6-6.5 percent in 2011 and 6.1-6.6 percent in 2012. “The relatively high economic growth will be fueled by growing exports,” Bank Indonesia Deputy Governor Ardhayadi said here last week. The balance of payment was expected to record a surplus of $16.4 billion and foreign exchange reserves was projected to increase to $112.6 billion from US$96.2 billion previously, he said. “Investment which began to show an upward trend in 2010 is expected to continue, making the structure of economic growth more balanced,” he said. Imports were likely to grow sharply in line with rising investment and consumption although the socio-political crisis in the Middle East and North Africa had the potential to impede global oil supplies, he said. If the increase in global commodity price could not be kept in check it would cause an upheaval to the money market and stock exchange, he said. “The spectacular upheaval may cause panic to global market players. The market players` panic that will engulf many countries may lead to a crisis,” he said.

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A2 March 17, 2011

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Interview IABC’s Peter Fanning

“Indonesia has many basic attractions” The following are excerpts from a short interview with Peter Fanning, Vice Chairman of the IndonesiaAustralia Business Council and also Chairman of the International Business Chamber. Fanning has been, and still is, active in assisting the Indonesian government in policy formation and reform, especially in areas of legal reform.

Indonesia has many basic attractions. But it could be so much better. At the moment Indonesia is benefiting because certain other locations are losing their attraction. But Indonesia must be a lot more positive in its appeal.

T Australia.

he Indonesia Australia Business Council (IABC) is a business association representing private sector business interests in commercial relations between Indonesia and

Established in 1989, the IABC is a result of the merger between DKSPIA or Dewan Kerjasama Pengusaha Indonesia Australia (Association of Indonesian and Australian Businessmen) and the Australian Chamber of Commerce in Indonesia (Austcham). The two major business groups had operated in Indonesia for 15 years before the merger. The IABC is affiliated with the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), and works very closely with the Indonesian Government and the Australian Embassy in Jakarta. This al-

lows the IABC to represent the business and commercial interests of Indonesian and Australian businesses engaged in investment and bilateral trade, through to Government levels. The IABC also cooperates closely with its sister organisation in Australia, the Australia Indonesia Business Council (AIBC). The IABC is governed by an Executive Board elected by the membership every two years. The Executive Board is supported by a National Secretariat, which is run by a professional team headed by an Executive Director. Currently there are IABC Branches in Central Java (Semarang) and East Java (Surabaya). The Bali Branch is in the process of re-establishment. In March, IABC held the Indonesia-Australia Business Conference with theme “Australia & Indonesia: Deepening Our Economic Partnership.”

What is your opinion on the recent IABC conference in Sydney? The event was well attended. It was evidence of good support for investing in Indonesia, but not as strong support as preferred. This was a meeting of old friends and supporters, no one argued against investing. We need them at events like this so that the word could be spread, and more investors convinced. What do you think about investment in Indonesia? Indonesia has many basic attractions. But it could be so much better. At the moment Indonesia is benefiting because certain other locations are losing their attraction. But Indonesia must be a lot more positive in its appeal. What is your hope for Indonesia-Australia business cooperation in the future? This can be based on mutual trust and a significant level of inter-country travel. This is not helped at the moment by Australia listing Indonesia among the countries to which travel should be reconsidered. This is not to say warnings about risks are not legitimate. They are necessary. But the over-simple categorization of countries right at the beginning of Australia’s travel warnings does more damage than good. Fanning is an Australian bar-

rister and solicitor (with an Unrestricted Practising Certificate) who moved from Australia’s Clayton Utz to the Indonesian law firm of Hutabarat, Halim & Rekan in 1997. He especially provides a line of communication for foreign clients from any country into the Indonesian legal system, and facilitates advice and assistance. He also advises Indonesian clients. He practices in the commercial and corporate areas, especially in matters involving foreign investment. Fanning is acknowledged by the Asia Pacific Legal 500, 2005/2006 Edition as one of the leading individuals in Corporate/M&A in Indonesia. He also advises in such diverse areas as water resources, oil & gas, mining, construction, insurance, air transport, industrial relations and dispute resolution, and also in charge as the Team Leader of Energy & Natural Resources practice group. Fanning regularly lectures at universities and the Ministry of Law and Human Rights. He also writes on legal topics of interest to investors. He is a member of Lawasia and the Australian Institute of Arbitrators and Mediators, and is an accredited arbitrator and mediator, as well as a member of the Association of Indonesian Advocates (PERADI) as a licensed advocate.

Coordinating Ministry of Political Legal and Security Affairs Republic of Indonesia

Ministry of Defense Republic of Indonesia

Indonesian National Defense Forces

Indonesian National Police

Indonesian Defense University

JIDD - JAKARTA INTERNATIONAL DEFENSE DIALOGUE 2011 23-25 MARCH 2011 BALAI SIDANG JCC INDONESIA FOR THE FIRST TIME IN JAKARTA, THE MINISTRY OF DEFENSE, REPUBLIC OF INDONESIA WILL HOST OFFICIAL DELEGATIONS FROM OVER 40 COUNTRIES TO MEET AND DISCUSS STRENGTHENING GLOBAL SECURITY AND STABILITY Homeland Security, Counter-Terrorism and Counter-Insurgency will be discussed alongside Peacekeeping Efforts, Humanitarian Relief, Search and Rescue, Disaster Management and Prevention, as well as protecting Critical National Infrastructure - global issues that connect the security and defense community. The JIDD 2011 will highlight and discuss one of the community’s most relevant topics - building capabilities by adopting the latest strategies and technologies through Technology Transfer, Countertrade, Outsourcing and Offset.

JAKARTA - THE CENTER FOR SECURITY AND DEFENSE DIALOGUE

JIDD Speaker Faculty to Include include Inaugurated by: H. E. Susilo Bambang Yudhoyono, President, Republic of Indonesia • • • • • • • • • • • • • • • •

His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade of Brunei Darussalam and Brunei Darussalam representative on the ASEAN Political Security Community Council HE Kay Rala Xanana Gusmao, Prime Minister of Timor-Leste HE Teo Chee Hean, Deputy Prime Minister and Minister for Defence, Singapore HE Prof. Dr. Ir. Purnomo Yusgiantoro M.Sc., M.A., Ph.D, Minister of Defense, Republic of Indonesia HE Dato’ Seri Dr. Ahmad Zahid Hamidi, Minister of Defence, Malaysia HE Pieter De Crem, Minister of Defense, Belgium HE Voltaire Gazmin, Secretary of National Defense, Philippines HE Bogdan Klich, Minister of National Defence, Republic of Poland HE Mr. Tariq Ahmed Siddique, Adviser to the Prime Minister on Defence Affairs, Bangladesh Mr. Gerald Howarth MP, Minister for International Security Strategy, United Kingdom Mr. Alain Le Roy, Under-Secretary-General for Peacekeeping Operations, UN Peacekeeping Dr. Stefanie Babst, Acting Assistant Secretary General for Public Diplomacy, NATO Mr. John Ging, Director of Coordination and Response Division, UN Office for the Coordination of Humanitarian Affairs Mr. Malcolm Taylor, Global Offset & Counter Trade (GOCA) Member & President Australian Countertrade Association Shri Satyajeet Rajan, Chairperson, Defence Offset Facilitation Agency, MoD India Colonel Omer Faruk Demircioglu, Director, Centre of Excellence Defence Against Terrorism, Turkey

JIDD Event Secretariat: Jl. Salemba Raya no 14, Jakarta Pusat 10430, Indonesia | T +62 21 367 43951

www.jidd.org

info@jidd.org

ASIA-PACIFIC SECURITY & DEFENSE EXPO - APSDEX

23-25 MARCH 2011

Alongside and in support of JIDD 2011, APSDEX serves as the exclusive showcase to support the topics being discussed within the conference. This unique pairing of conference and showcase creates a 3-D approach to explore the latest and greatest opportunities to develop a stronger industry in support of security and defense. SUPPORTED BY

APSDEX Secretariat: Jl. Teluk Betung, #43, Jakarta Pusat, 10230 | T +62 21 391 3037

www.apsdex.com info@apsdex.com MEDIA PARTNER MEDIA SUPPORT

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A4 March 17, 2011

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The Economy ECONOMIC UPDATES IDB ready to finance fish port project in W. Sulawesi The Islamic Development Bank (IDB) is ready to provide Rp 405 billion in loans to help build a fish port in West Sulawesi province this year, an official said. West Sulawesi Governor Anwar Adnan Saleh said on Friday the bank assured him of its readiness to help finance the project after the local government consulted the international

financial institution. The IDB would not help finance the project without counterpart funding. Therefore, part of the funds would originate from the 2011 state budget funds allocated to the Marine Affairs and Fisheries Ministry, he said.

State banks channel Rp 3.8 t in KUR The Pinang Kampai airport of Dumai, Riau, normally used by Fokker planes, will be built for use by bigger planes like Boeings. Head of the Dumai transportation agency H Marwan said here recently that the upgrading is first of all carried out by increasing the length of the runway from 1,800 x 40 meters to 2,250 x 40 meters. “We are doing this because the runway of a Boeing is basically 2,000 meters long. We therefore have to renovate the airport by making its runway longer,” he said. Marwan also said other facilities of the airport which are thought to be not enough need to be renewed by the procurement of supporting heavy equipment. “The improvements and building of Pinang Kampai will have its funding and budget from the State Budget of the Transportation Ministry estimated at Rp 34 billion,” Marwan said.

ADB to Provide $500 Loan for Geothermal Development The Asian Development Bank (ADB) will provide a $500 million loan to develop three geothermal projects in Indonesia. Djajang Sukarna, the Secretary of the Director-General for Renewable Energy, said that the funds will be used to fund projects from the exploration stage to

building transmissions. The three projects are in Karaha, West Java (2 x 55 megawatt), Sungaipenuh, Jambi (2 x 25 MW), and Mataloko, Nusa Tenggara (2 x 2,5 MW). The soft loan comes with a significantly a low interest rate repayable at a with period of more than 20 years. After the transmission is built, the project will be developed by the Pertamina Geothermal Energy and state-owned power company, PLN. The three projects are part of the second stage of the 10.000 MW geothermal power plant acceleration program implemented by PLN.

Central Java Exports Up by 12.84% Central Java’s exports in December 2010 rose by 12.84 percent compared to the previous month. According to recent data published by the Central Java Central Bureau of Statistics (BPS), export volume in December 2010 reached $369.51 million. “Exports are still dominated by textiles and textile products,” Central Java BPS chief, Lukito Praptoprijoko, said yesterday. The main export destination country for the exports was the US. Lukito said textiles and textile products exports were worth $ 168.25 million, various factory products $58.43 million, wood products $50.40 million, oil and gas $6.36 million and non-oil and gas $363.15 million.

Grand harvest estimated at 27.2 million tons of rice The Ministry of Agriculture said the country`s rice grand harvests on 5.5 million hectares of rice fields in the January-April 2011 period were estimated to produce 27.203 million tons of unhulled rice (GKG). Food Crops Director General Udhoro Kasih Anggoro said here last month that the estimated production of 27.203 million tons accounted for 35 percent of the country`s production target in 2011 which totaled 70.5 million tons of GKG. “The harvests are calculated based on a production estimate that one hectare would produce 50.52 quintals in a relatively wet climate condition like now,” he said.

Mall Expansion A woman walks in front of a big sale sign at one of the biggest malls in Jakarta. Mall expansion is expected to grow rapidly. Medium market segment malls absorb up to 90% local products. Meanwhile, high-end malls only accommodate 10% of local products. Indonesian consumer purchasing power is better than that of China and India. The President Post/Nandi Nanti

Ministry Sees $80 b Investment in Manufacturing Sector The $80 billion investment target was expected to provide jobs for at least 3.2 million workers.

he Ministry of Industry has set itself a target of $80 billion foreign and domestic investment in the manufacturing sector for the coming the five years, a ministry official said. “We are optimistic that the figure would be achieved owning

to the fact there have been several large scale investment projects in this sector that haven been running well,” Industry Ministry Secretary General Anshari Bukhari said here last month. He said that the $80 billion investment target was expected to provide jobs for at least 3.2 million workers. The senior official said that one of the big project was an integrated steel factory being built in cooperation between state-owned steel firm PT Krakatau Steel and South Korea`s POSCO. This project is estimated to need an investment of $6 billion.

Besides that, the secretary general said, there is another large scale investment in the petrochemical and cement projects that would involved investment worth trillions of rupiah. “If the the development of the oleo chemical project in Sei Mangke, Malloy is running well, the target of $80 billion will be achieved,” he said. His said that his ministry had also set itself a target of providing jobs for at least 3.2 million workers in the manufacturing sector in the coming five years (from 2010 to 2014). “If the 22 footwear factories re-

alize their investment, they will be jobs that could absorb some 6,000 to 10,000 workers,” he said. In the meantime, France has expressed interest to expand investment and technology transfer to among others aircraft component manufacturing in Indonesia. “The business delegation from France is interested in among others expanding investment in aircraft industry especially aircraft components,” the director general of high technology-based prime industries of the ministry

of industry, Budi Darmadi, said last week following the visit of 60 members of French business delegation to the office. He said the AEDS aircraft component manufacturer and Thalles from France had expressed their interest in opening a two-way communication with the country`s aircraft industry. That way the continuity of component manufacturing could be maintained, he said. “We need to develop our aircraft industry for air connectivity in the country and improving our TKDN in the component industry,” he said.

BI: Banks’ LDR to Rise in 2011 www.infogres.com

Bank Indonesia (BI) predicts there will be a hike in banks’ loan-to-deposit ratio (LDR) in 2011 as credit had grown in excess of third party funds. “The LDR will increase in 2011 because credit growth is high while third party funds will drop,” the central bank’s deputy governor Muliaman D Hadad said here recently. He said credit growth in 2011 was predicted to reach more than 24 percent in line with banks’ business plans submitted to Bank Indonesia. “According to projections, credit will increase to over 24

percent or higher than last year’s 23.6 percent. This is normal due to economic growth which is projected to reach 6.5 percent,” he said. Third party funds meanwhile are projected to grow only 15.1 percent because banks start to reduce collecting funds in view of the large stocks of funds they manage. “Banks still have a large liquidity so they do not need more additional funds to increase credit distribution,” he said. Based upon the projections, he said, BI has made an analysis to see the capability of the banks to

implement their business plans that would not endanger their liquidity. “We must assure that banks could increase their credits to boost the economy without having to disrupt their security. Based upon BI stress tests all banks are in good condition,” he said. He said the conditions of the Indonesian economy this year would be better although it would still be disturbed by the world`s economy whose recovery is slow. “Under such conditins we are optimistic the banking industry will grow better,” he said.

Credit growth in 2011 was predicted to reach more than 24 percent in line with banks’ business plans submitted to Bank Indonesia.

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March 17, 2011 A5

The Economy Crude Oil Production Falls Short of Target The daily production figure of 905,000 barrels per day falls short of the targeted 970,000 barrels per day as set in the state revenue and expenditure budget for 2011.

ndonesia cannot meet its daily crude oil production target of 970,000 barrels due to various problems. As such, there is a shortfall of 70,000 barrels per day, according to the Upstream Oil and Gas Executive Agency (BP Migas). BP Migas spokesperson Elan Biantoro told the media here last month that crude production in the period of January 1 to February 22 amounted to 905,000 barrels per day.

The potential crude loss caused by the problems have reached 37,850 barrels per day. The daily production figure of 905,000 barrels per day falls short of the targeted 970,000 barrels per day as set in the state revenue and expenditure budget for 2011, he added. Biantoro said that there are 105 causes behind the potential loss, ranging from unplanned shutdowns, off-takings to delays in project implementation.

He explained the unplanned shutdowns have been due to natural disturbances such as excessive rainfalls, lightning strikes, high waves and floods. Production disturbance outside planning, he said, has been related to the breakdowns of production facilities that shutting down production operations causing a potential loss of 8,000 barrels per day. Other problems as production non-loss potentials but posed as reasons for production disturbances are delays in well drilling schedules at Chevron Pacific Indonesia, Petrochina Jabung, Pertamina EP and JOB Talisman Jambi Merang.

Mari: Non-oil/gas exports in January up Indonesia’s non-oil/nongas exports grew above the government`s target in January 2011, Trade Minister Mari Elka Pangestu said. The country’s non-oil/non-gas exports in January 2011 reached $11.9 billion which was up 29 percent from the same period last year, she said when reporting the country`s export-import performance at a press conference here last month. “That is higher than the target set by the government for the national medium-term development plan at 11 to 12 percent or the trade ministry’s target of 12 to 15 percent,” she said. Mari said the non-oil/non-gas export growth in the first month of this year was also above the average rate of non-oil/non-gas exports in 2010 which was worth $10.8 billion. This year, she said, the gov-

ports from the mining, industrial and agricultural sectors.

Trade Minister Mari Elka Pangestu

ernment targeted $139 billion to $146 billion in non-oil/non-gas exports or an average of $11.6 billion to $12,1 billion a month. The country’s non-oil/gas exports in January 2011 had resulted in a balance of trade surplus of $1.9 billion, she said. The minister said the rise in the value of non-oil/gas exports in the first month of 2011 was mainly driven by increasing ex-

The highest performer was industries which reached $9.3 billion in the month, up 38.4 percent from the same period last year. “This is one of the indicators that domestic industries have started to recover,” he said. She said exports from the agriculture sector grew 6.03 percent and the mining sector 4.04 percent. She said the value of nonoil/gas exports in January 2011 was powered more by higher prices rather than hikes in volume. She said a relatively high price hike was recorded for rubber (64.7 percent), palmoil (34.2 percent) and coffee (16.4 percent.

RI No Hurry to Sign FTA with EU Indonesia will not rush to sign a free trade agreement (FTA) with the European Union, Deputy Trade last month. “Indonesia will not make an agreement just because others have done it. We must assess and evaluate the conditions first,” he said at the ASEAN-EU Program for Regional Integration Support II. EU has been holding negotiations with Singapore as of March 2010 and with Malaysia as of October 2010 to make an FTA and will also conduct negotiations with Brunei Darussalam, Vietnam, Thailand and the Philippines. “We have not done such a negotiation yet,” he said, adding that Indonesia has a vision group that would analyze and evaluate

future economic steps for Indonesia,” he said. Mahendra said since the financial crisis in Europe and North America in 2008-2009 had led to a shift in the global economic orientation to emerging markets such as China, India and Indonesia. “Global industries can no longer force consumers in the region to consume the same products sold in the US or Europe. There must be adaptations with the market,” he said. In view of that, he said the ASEAN-EU FTA required adjustments and flexibilities because what it is is “a form of temporary mechanism of interactions”. Regarding the ASEAN Free Trade Area (AFTA), Mahendra said it would bring benefits to

small and medium businesses referring to the Rules of Origin which show that products are made in ASEAN members. Mahendra said 70 percent of Indonesian companies have met the agreement and half of them are small and medium businesses. He said it was not about how many FTAs to be made but how good they would be for integrating the existing agreements into ASEAN. “Do not rush to make an FTA, evaluations must first be made on the existing agreements,” he said. Indonesia has so far signed free trade agreements with 10 countries in ASEAN and with China, Australia and New Zealand. www.trabel.com

The Europian Union in Brussels. EU has been holding negotiations with Singapore as of March 2010 and with Malaysia as of October 2010 to make an FTA and will also conduct negotiations with Brunei Darussalam, Vietnam, Thailand and the Philippines.

Ilustrasi: The President Post/Nandi Nanti

Biantoro said BP Migas will launch a more intensive control over the five biggest contractors, namely Chevron Pacific Indonesia, Pertamina EP, Total E&P Indonesia, ConocoPhillips and Kodeco Energy, whose production has totally decreased about 10,000 barrels per day. However, liquefied natural gas production up to February 22 indicated a satisfactory performance with a daily production of 8.66 million cubic meters, so that total combined production of oil and gas amounting to 2.45 million barrels equivalent of oil per day, exceeding the state budget target of 2.36 million barrels per day.

Govt Provides Rp 950 billion for National Fish Farm Program The government through its related ministries will provide Rp950 billion to support the national fish farm program in Maluku province. “The amount of the funds provided by the government for the program is Rp950 billion,” Maritime Affairs and Fisheries Minister Fadel Muhamad said here last month. According to Fadel, the amount

of the funds was sufficient to realize the program, although Maluku provincial government side proposed Rp 16.1 trillion. Fadel said that Rp 140 billion of the total funds of Rp 950 billion would be provided by Maritime Affairs and Fisheries Ministry while the rest would come from a coordination with other related ministries.

For now Fadel said his ministry still focused on Maluku to realize the national fish barn program because a lot of fishery products in the province have yet to be worked out. The fisheries minister explained that Maluku had capture fisheries potential of 1.6 million tons per year but the total product was only around 300 tons per

year. By confirming Maluku as national fish farm, Fadel expressed hope that fisheries product in the province could be improved through the appropriate management of various fish ports there. Fadel also asserted that all fisheries product in Indonesia should first be processed at home before being exported.

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A6 March 17, 2011

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The Region East Asian Economy

The World Economic Forum and Indonesia Indonesia, as the present ASEAN chairman, has its objective to take the ASEAN community closer to the Global Community.

By Atmono Suryo

EAST ASIAN ECONOMY s growth of the global economy in 2010 proved to be stronger than expected, there is now “guarded optimism” in the air. Many economists at January’s World Economic Forum (WEF) in Davos agreed that the world is set for a “three-speed” recovery: emerging countries are set to grow by more than 6% in 2011, the US by 3% and the Euro area by less than 2%. Others, in fact, spoke about a “multi-speed recovery”. In global terms, the East Asian economy looks to be in the best position. The Asian Development Bank (ADB) growth forecast for 14 economies in East Asia is now set at 8.1%. The 14 fast moving emerging economies consist of the 10 ASEAN economies (including Indonesia) plus China, South Korea, Taiwan and Hong Kong. These economies are assured of a sharp V-shaped recovery. World Economic Forum Indonesia, as the present ASEAN chairman, has its objective to take the ASEAN community closer to the Global Community. Including the Davos World Economic Forum. The Davos World Economic Forum–it is not well known in Indonesia–should be seen as part of the global community. It is a very well-known forum in Switzerland where a very large number of political, fi-

nancial and business elites from around the world gather every year, including presidents, ministers and a very large number of CEOs big businesses and many top economists of the world. It is quite a unique forum lasting for three days to discuss in an informal, non-binding and unique way important globalization issues. At the Davos WEF (World Economic Forum) in January 2011, representatives from East Asia participated and made their critical observations about the global economy and the reasons of the economic and financial crisis of 2008-09 that originated from advanced countries of the West. The chairman of the World Economic Forum, Klaus Schwab, in his observations at the beginning of the meeting in Davos made the following important points: • Never before has the world faced so many serious challenges simultaneously; the world is entering a new era, and as such there is the need to face this “new reality”; • Globalization has improved the lives of hundreds of millions, but the benefits have been unevenly spread; • The economic centre of gravity continues to move to the East (Asia) and to the South (emerging countries). It will create political, economic and social shock waves; • Greater expressions of national interests may lead countries to look primarily inward when at-

tempting to solve any problem; hence, the problem of protectionism; • The new reality will be characterized by growing resource scarcity with serious implications on energy, food and water security; • It is important to stimulate selfemployment, entrepreneurship, and social entrepreneurship through the right forms of education; and • There is the necessity to create new mechanisms to manage the global economy. The G20 is an important step in the right direction. These issues give us, in Indonesia, the general idea what the globalized world is facing. From the debates at the WEF it was concluded that East Asian economies were considered as the locomotive of global growth. Asia led a global recovery last year as growth in developed markets was restrained by Europe’s sovereign credit woes and U.S. unemployment. Indonesia From the little information that we have, it seems to me that presently Indonesia has at least three objectives in the external economic area: • To take the ASEAN community to the Global Community of nations (WEF in Davos, WEF East Asia in Indonesia, East Asian Summit in Bali, APEC meeting in Indonesia, WTO in Geneva, Climate change discussions, Environment problems and Food Security ) • To bring forward the estab-

lishment of the ASEAN Community by 2015, in particular the ASEAN Economic Community, presumably as a step towards the evolution of the “East Asian Economic Community” • To play an active role in the G20 in cooperation with the ASEAN secretariat and the other Asian members (China, Japan, India and South Korea) I have the impression that it was for the first time that Indonesian leaders made their presence known at the recent January 2012 World Economic Forum. President Susilo Bambang Yudhoyono and Trade Minister Mari Pangestu made their key statements while the chairman of BKPM (the Investment Coordinating Board) Gita Wirjawan was also seen busy approaching key business leaders. It is important to know that the WEF meeting was informed that Indonesia is ready to host the World Economic Forum on East Asia in June in Indonesia. According to Trade Minister Mari Pangestu, among the topics to be discussed at the WEF East Asia meeting in Indonesia concerns the issue related to commodity prices volatility, food resilience, and how to step up the development of technology especially in the areas of agriculture and climate change. ASEAN COOPERATION The East Asia Summit (EAS) is an ASEAN forum held annually by leaders of initially 16 countries in the East Asian region. It

GDP (nominal) ($US billion)

Population (million)

China

5,365

Japan

5,273

127

India

1,367

1,215

South Korea

991

Indonesia

670

235

is set to increase to 18 countries with the addition of Russia and the United States at the 6th EAS in 2011 to be held in Bali in October this year. The East Asian Summit will be held after the ASEAN leaders’ meeting. Based on the “concentric model” ASEAN is at center stage, ASEAN+3 (China, Japan and South Korea) at the next (second) band and the East Asian Summit (EAS) at the third band. ASEAN is primarily set to accomplish the ASEAN Economic Community as one of the three pillars of the ASEAN Community 2015. In the area of economics, ASEAN is keen to enhance its external economic relations along the lines below, particularly in the area of trade, a key sector in ASEAN economies: There is no information yet what the agenda will be at the East Asian Summit in October in Bali. But I am sure that it will also deal with globalization issues mentioned at the Davos meeting and the WEF East Asia meeting scheduled in June in Indonesia. There is the need in Indonesia to also see “the new reality”, which is that the world is moving fast to become an interdependent

It is important to realize that no one country can live in isolation, not even China, India, Japan, Russia, the US or the European Union. Every country has become an integral part of the global economy. world, warts and all. It is important to realize that no one country can live in isolation, not even China, India, Japan, Russia, the US or the European Union. Every country has become an integral part of the global economy. It is therefore imperative for Indonesia to strengthen its internal economy and become a very competitive country, ready to play its role as one of the top ten emerging countries not only in East Asia but also in the fastmoving world. Indonesia has all the potentials to become another powerhouse in the global economy. The writer is former ambassador to the EU

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Around Jababeka New Man in RI’s Film Bureaucracy Syamsul Lussa is not a wellknown figure in the country’s film industry and even less so among film bureaucrats.

Jababeka is serious in developing property projects, including home-shops (ruko).

This is understandable as he is a man of few words. He was previously Director for Marketing Development. Syamsul Lussa

Minister of Culture and Tourism Jero Wacik recently inaugurated Syamsul Lussa as the new Director General for Films at the Culture, Arts and Film Directorate, Ministry of Culture and Tourism along with four other echelon II officials. Syamsul Lussa is not a wellknown figure in the country’s film industry and even less so among film bureaucrats. This is understandable as he is a man of few words. He was previously Director for Marketing Development. Born in Sulawesi and an

Jababeka Industrial Estate: Magnet for Developers

alumnus of University of Hasanudin, Syamsul took his Master’s degree in Australia. He replaces Ukus Kuswara who was appointed as Inspector General a few months ago. On the inauguration, Jero Wacik told the new film director to produce 120 movies a year. He also instructed Lussa to deal with the controversial film tax that has the national film industry complaining. The national film industry had to pay bigger tax compared to imported movies,” he said.

ababeka Industrial Area is a magnet for developers who wish to build property projects. It was developed by PT Jababeka and offers very lucrative business potentials. Jababeka is serious in developing property projects, including home-shops (ruko). In this area there are various types of home-shops that meet the needs of various circles. Businesses generally need three kinds of home-shops. Among others, commercial home-shops in the central business area, shops in the crossing area, and in residential areas. Each type of shop has an assured market potential. For example, shops at central business area are needed by banks that look for strategic locations. Shops at the crossing areas strive to provide the benefits of those that pass that location, such as food or daily necessities. The presence of workers

in many companies at Jababeka also increases potential business for shop owners. Shops in residential areas allow residents to meet their needs. The occupancy in Jababeka indeed saves a great potential, there are about 8,000 families living in Jababeka. Certainly every family has different needs, ranging from minor items to electronic goods. This area is growing rapidly: the Jababeka population consists of various classes, lower class,

middle, and upper. Their different needs have made them attractive to developers and shop owners. For example, Rusita Maknawi from PT Sumber Karya Kencana, a company that has experience in developing several commercial and residential projects in Jakarta and Bandung, is confident in the development of the City ofJababeka. The company has built a commercial project called CBD office in Jababeka.

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Education The Growing Concern to Improve World-class Standard of Universities It’s no secret that only few universities in Indonesia meet national levels, much less international standards.

any Asian countries, particularly South Korea, China, Singapore and even Thailand, are developing world-class universities. It’s no secret that only few universities in Indonesia meet national levels, much less international standards. It is vital to understand that the role of basic education is to raise the dignity of the people as a whole. At the same time, if governments and societies do not have the capacity to develop high learning institutions, we must allow the private sector to assume that role. As stated by Philip G. Albach in “The Costs and Bene-

fits of World-Class Universities” (2005), ‘a world-class university underscores international standards in excellence’. This includes excellence research recognized by the international academic community through international publications; excellence in teaching staff who are highly qualified and best in their respective field; excellence in academic freedom and intellectual excitement; excellence of management and governance; adequate facilities for academic work, such as a complete library, cutting-edge laboratories, and adequate funding to support the teaching-learning process and research. No less important is excellence in international cooperation, both in academic programs, research, and so forth.

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It is not easy for universities in Indonesia to achieve these standards of excellence. Like other world-class universities, not all of their academic programs can be said to meet fully international standards. Therefore, universities in Indonesia should develop some specific academic programs that can be developed to reach international standards. If this could be done, it’s clearly a strategic step towards the formation of worldclass universities in Indonesia. President University is one of the top private universities in Indonesia. It has a world-class curriculum ever since it was established in 2001.

use of world-class facilities such as the Jababeka Golf & Country Club and the President Executive Club.

It is located in Jababeka Education Park in Kota Jababeka, within the Jababeka Industrial Estate which houses more than 1,500 national as well as multinational companies such as Unilever, Mattel, Samsung, Mulia, ICI Paints, and others. Its location also allows students to make

President University recruits students from all over the world to study in Indonesia. The majority of its international admissions every year come from Asia, namely China, South Korea, Vietnam, Malaysia, the Philippines, India and many others.

As an international standard university, the classes conducted in English. President University is equipped with an international standard curriculum which was made and developed by worldclass academics. All courses, including state mandatory courses, are conducted in English. Students speak, write, learn and think in English, the Global Language of today.

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

EDITORIAL & CIRCULATION DEPARTMENT Srimay Noviani LAYOUT & DESIGN Mohamad Akmal SALES & MARKETING Detia Rais PHOTOGRAPHER Nandi Nanti

Business BUSINESS BRIEFS Sinar Mas Group to build two CPO plants PT Sinar Mas Group plans to build two crude palm oil processing plants in West Kalimantan with a combined capacity of 50 tons per hour. The construction of the two plants scheduled for completion in October 2011 was aimed at anticipating the maiden harvest of the company`s oil palm plantations in early 2012, PT Sinar Mas Group West Kalimantan district manager Susanto Yang said here last month. “The construction of the two CPO processing plants will cost an estimated Rp 300 billion or Rp 150 billion each,” he said. He said the company planned to build at least four CPO processing plants in the province. “In the first stage, we will build CPO plants in Badau and Silat Hilir subdistricts,” Susanto said. In addition, the company would also build a 300-km road linking Silat to Badai to transport its CPO for export to Malaysia, he said.

AirAsia to sell 20 pct of its shares Low-cost airline company PT Indonesia AirAsia plans to sell 20 percent of its shares to the public through an initial public offering (IPO) at the end of the third quarter of www.arsipberita.com this year. The company aimed to raise Rp1.3 trillion to Rp1.8 trillion or US%150 million to $200 million in funds through the IPO, AirAsia President Director Dharmadi said here recently. “We will conduct the IPO as early as at the end of the third quarter or the fourth quarter,” he said. The company would use proceeds from the IPO of its shares to buy new planes and strengthen working capital. “We now have a fleet of 16 planes in Indonesia. We have set ourselves the target of operating 30 planes in 2015,” he said. Last year the company saw its income grow 37 percent to Rp 2.76 trillion from the year before, while its net profit skyrocketed 351 percent to Rp 474 billion. He said the company had set an income growth target of 18 percent for this year. Indonesia AirAsia is an Indonesian associate carrier of Malaysian lowfare airline AirAsia. It operates scheduled domestic and international services.

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State-Owned Banks Set to Finance PT Inalum Takeover Reuters/Ilya Naymushin

The funds the government have to prepare in order to take over the company is estimated to reach around $720 million. Three state-owned banks, namely PT Bank Mandiri Tbk., PT Bank BNI Tbk., and PT Bank BRI Tbk. have stated their readiness to finance the takeover of PT Indonesia Asahan Aluminium (Inalum) by the government. “If the government finally decides that Inalum will be managed by a state-owned company (BUMN), the state-owned banks will be ready to finance the takeover,” State Enterprises Minister Mustafa Abubakar said at his office here recently. Japan through Nippon Asahan Aluminium controls 58.9 percent of Inalum’s shares while the rest is held by the Indonesian government. PT Inalum’s “build, operate and transfer” contract is expected to expire in 2013. Based upon the contract three years before the expiration of the BOT contract the two parties should conduct negotiations to determine whether or not it would be extended. The funds the government have to prepare in order to take over the company is estimated to reach around $720 million. Mustafa did not tell how much the state-owned banks should prepare for the takeover and con-

tinuation of the company`s operations. “There have been no figures yet. Some time ago we talked about $700 million but it has not been updated,” he said. The state enterprises ministry is preparing two options with regard to Inalum management. The first is making it a new state-owned company or a subsidiary of a state-owned company. Besides the state-owned banks some other state-owned companies would also be involved in the takeover bid such as PT Perusahaan Pengelola Aset, PT Danareksa Sekuritas, PT Bahana Sekuritas and PT Aneka Tambang. Inalum to become world player “We wish Inalum to become a world-class company, to be one the fifth or tenth biggest company in the world,” the director of international industrial cooperation of the ministry of industry, Agus Tjahajana, said after a first formal meeting with the Japanese side on the future of aluminium smelter here. He said the world`s aluminum production was recorded at around 40 million tons a year and China has been one of the big producers with its production

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

Inalum at present has an installed production capacity of 250,000 tons of aluminum slabs a year and 40 percent of its production is marketed at home.

reaching around 15 million tons a year. Agus said the Indonesian government plans to re-order the whole operations of Inalum including its smelter plant and the Asahan II hydro-power plant after the cooperation contract with Japan expires in 2013. “The whole operations in existence now after 2013 must be reordered. In view of that a team will be set up for it,” he said. PT Inalum is a joint venture company between Indonesia

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:

and NAA with an investment of around $2 billion in 1987 which has been operating since 1982. Indonesia holds 41.12 percent shares while NAA 58.88 percent shares. PT Inalum’s facilities include an aluminum smelter plant in Kuala Tanjung, Batubara District and a hydro-power plant in Paritohan, Toba Samosir District. Agus said Inalum at present has an installed production capacity of 250,000 tons of alumi-

num slabs a year and 40 percent of its production is marketed at home. The Japanese side has also made an offer of a fresh investment of 300 million US dollars aimed at boosting the production capacity up to 80,000 ton per year. Inalum’s production is 40 percent for domestic market in Indonesia, which is just a 30 percent of the country’s annual demand for aluminium, and the rest 60 percent exported to Japan.

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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Business Lapindo to drill deeper into five gas wells Lapindo Brantas Inc is planning to drill deeper into five of its gas wells in Kalidawir Village, Tanggulangin Sub-District, Sidoarjo District, East Java Province, a spokesperson said. “The deeper drilling is necessary to produce more natural gas to meet the need for gas nationally and in the district as planned by the Upstream Oil and Gas Executive Agency (BP Migas), Tariono, Lapindo Brantas Inc area manager, said here recently. According to Tariono, Lapindo Brantas Inc had five gas wells in Kalidawir Village and 20 others in Wunut Village, Sidoarjo. “Since the Lapindo mudflow disaster in 2006, the company had stopped its activity in the area but now drilling operations to greater depths will be started this year,” Tariono said. Tariono said the deeper drilling operations would be conducted in five wells which were 3.400 feet deep, using a sideway drilling method which was considered safer than the vertical drilling method. The company would have a dialogue with the local people to ask for permission for the project, Tariono said. Tariono said, the project was secure as it would cover the same wells.

Joint-cooperation Jababeka President Director SD Darmono and state electricity company PLN director sign cooperation agreement on operation of Bekasi Power and PLN.

Extra Joss sales surpass Rp 3 t

The President Post/Nandi Nanti

The sales of energy drink Extra Joss produced by PT Bintang Toejoeh rose significantly in January 2011 from the same period last year. “Last year, the total turnover from sales of energy drinks including Extra Joss reached Rp3 trillion,” the company`s marketing general manager, Loni, said in its press statement here recently. She said the rise was driven by sales last year that increased by 20 percent compared to that of the previous year. “The trend this year is even better with sales in January already 20 percent above that of the same period last year,” she said. Extra Joss sales meanwhile rose more than 20 percent in 2010 from the previous year. She said sales would rise this year because the dry season this year is predicted to be longer than last year and the country`s economic growth will be better. The total number of Extra Joss consumers until now is three times higher that the number of consumers of other kinds ofenergy drinks. Extra Joss`s market share reached around 50 percent in 2009 and around 60 percent in 2010. Around 70 percent of the product is sold in Java while the rest outside the island. Extra Joss also has branches in other ASEAN countries except Thailand. “Right now the overseas sales reach 30 percent of total production in a year,” she said.

RI to Have Only 78 SOEs by 2014 At present, Indonesia had 142 state-owned companies and the reduction of the number by half was a measure to make those companies world-class ones.

he government has set itself the target of having only 78 state-owned enterprises (SOEs) by 2014, a spokesman said. At present, Indonesia had 142 state-owned companies and the reduction of the number by half was a measure to make those

companies world-class ones, Coordinating Minister for Economic Affairs Hatta Rajasa said here last month. He disclosed the plan to slash the number of state-owned companies after a meeting with SOE Minister Mustafa Abubakar and Deputy Trade Minister Alex Retraubun at the SOE ministry in Jakarta. Rajasa said the policy of reducing the number of state-owned companies would be implemented as the government wanted them to become spearheads of the national economy. At the meeting, he had listened to reports on the progress and current conditions of the 142

SOEs. Rajasa said the reduction would be carried out through restructuring, re-grouping and consolidation based on the shareholders’ actions involving mergers, holding, divestment or liquidations. “The essence is that how the government keeps on strengthening the SOEs to achieve world class status, despite some remaining to hold public service functions yet still they need to be strengthened,” Minister Rajasa said. Minister Abubakar admitted that the overall performance of the SOEs had yet to reach optimum level and was marked by low competitiveness, especially

Peabody Energy in Agreement with Indonesian Partner in Coal

in this age of fast changing business climate in the ever globalizing and free trade eras. To date, the majority of the 142 SOEs was of relatively small business scale and had been in the red in for years. SOE Ministry data shows that up to December 31, 2010 there were 22 big-scale SOEs whose total assets represent 90.5 percent of the total 142 SOEs, 88.92 their total equities, 85.99 percent of their sales and 89.89 percent their net profits. The other 119 SOES are of small scale in business size in terms of assets, equities, sales and net profits.

Hatta Rajasa

Rajasa said the reduction would be carried out through restructuring, regrouping and consolidation based on the shareholders’ actions involving mergers, holding, divestment or liquidations.

PT Newmont Nusa Tenggara on track to go public Mining company PT Newmont Nusa Tenggara plans to go public, according to President Director of the Indonesia Stock Exchange (BEI), Ito Warsito. “The company has already expressed its interest to be listed at the BEI,” he said after attending the 10th International Conference on Marketing and Management Sciences at the Economics Faculty of state University of Indonesia here last month. PT Newmont Nusa Tenggara has decided to conduct an initial public offering. The company has three reasons to conduct an IPO namely to give an opportunity for the public in Sumbawa in particular to buy its shares, to help the government`s economic policy and to make it easier to raise funds. State-owned companies that will soon be listed at the BEI are plantation company PT Perkebunan Nusantara, insurance company PT Jasa Asuransi Indonesia (Jasindo) and others. Ito said the state-owned companies are now still processing it. He said the process was different from that of private companies namely the companies had to get an approval from the House of Representatives (DPR). “Indeed the process is still long. The government has to prepare everything soon,” he said. Among the state-owned companies that have recently gone public are PT Krakatau Steel, bank BTN and airline company PT Garuda Indonesia.

State-owned Semen Baturaja Set to go public

www.daylife.com

Peabody Energy has said it has entered into an agreement with PT Cahaya Energi Mandiri (CEM) to source 2 million tons of coal for Asian export through Peabody COALTRADE`s international trading hub in Singapore. The contract marks the third term agreement Peabody has secured in recent months, which together account for 5.5 million tons of Indonesian coal. Coal from PT CEM will be secured over two years from a mine in East Kalimantan, and the relationship could be expanded over time. “Peabody`s leading coal trad-

ing and brokerage platform continues to expand to serve highgrowth Asia-Pacific markets,” said Peabody President and Chief Commercial Officer Richard A. Navarre. “We will continue to increase our coal sourcing in Indonesia, the world`s largest supplier of seaborne thermal coal.” Seaborne coal demand is pro-

jected to exceed 1 billion tonnes in 2011, with the Asia Pacific region comprising the vast majority of demand growth. Peabody serves customers in more than 25 countries on six continents and has trading and business offices in Indonesia, Singapore, China, Australia, the United Kingdom and the United States. Peabody Energy is the world`s largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

State-owned cement company PT Semen Baturaja plans to go public in the third quarter of this year, State Enterprises Minister`s Deputy for Restructuring and Privatization Pandu Djajanto said here last month. He said PT Semen Baturaja plans to offer 25 percent of its shares through an initial public offering. He said he would submit the plan to an internal meeting with the minister. “We will propose PT Semen Baturaja. The meeting will take place on Sunday. According to plans the IPO will be done in the third quarter. We will also propose PT Waskita Karya and PT Huta-

ma Karya,” he said. Regarding the IPO price of PT Semen Baturaja`s shares Pandu said it would be referred to the minister. “It would be the minister that would decide the size. The company has a good prospect. So the price must not be set too low,” he said. He said PT Semen Baturaja is expected to raise around Rp1 trillion from the IPO. The company plans to increase its production capacity and market share up to 30 percent. State-owned airline company PT Garuda Indonesia had gone public recently, following stateowned steel company PT Krakatau Steel.

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Investment www.presidensby.info/rusman

Mitsubishi Plans to Invest Up to US$20 b

INVESTMENT BRIEFS RI, Kuwait attracting business investors

The plan was revealed by Mitsubishi Corp CEO Ken Kobayashi at a meeting with President Susilo Bambang Yudhoyono here last month.

apanese automotive company Mitsubishi Corporation plans to invest over $20 billion in Indonesia within the next ten years, an official said. The plan was revealed by Mitsubishi Corp CEO Ken Kobayashi at a meeting with President Susilo Bambang Yudhoyono here last month. “Within 5-10 years from now, depending on how fast the projects can be implemented. However, they have been urged by the president to increase their investment, and they will consider it,” Chairman of the National Investment Coordinating Board (BKPM) Gita Wiryawan later

Nasser Bareh Al Enezi

Kuwaiti Ambassador to Indonesia Nasser Bareh Al Enezi said last month he and the Indonesian embassy in Kuwait had been trying to attract Kuwaiti investors to Indonesia. Nasser made the statement when observing the 50th Kuwait`s Independence Day of the 20th anniversary of Kuwait`s liberation, in Jakarta. Kuwaiti investors were interested in transportation, informatics, banking, insurance and some other sectors which Indonesia have proposed. Nasser said Indonesia`s biggest commodities to Kuwait included plywood, cars, rubber and clothes as well some other commodities, while Indonesia`s imports from Kuwait reached $1.42 billion comprising oil and other products relating to oil.

Indian investor eyes Buleleng port

said at a press conference held at the presidential office. The company would participate in the projects such as Donggi Senoro, Smelter construction at Weda Halmahera bay, North Maluku, and Metropolitan Priority Area (MPA), he said. The Japanese corporation was also interested in participating in the development projects in Jakarta, he added. “They want to participate in the development of MPA, whether airport, seaport, MRT, roads and it would be environmentally friendly,” he said. Meanwhile, for the construc-

tion of Smelter in Weda Bay, Mitsubishi will do it with the cooperation of Eramet and Aneka Tambang (Antam), he said. The largest investment would go to the smelter construction project with a total value of 5 billion US dollars, followed by the Donggi Senoro project. Ken Kobayashi told the press that in the meeting with the head of state, he and the president discussed several projects and Mitsubishi offered its contribution to MPA and infrastructures. Misubishi aimed at selling its automotive products amounting to 2 million units up to the next five years in Indonesia, he said.

Spanish Companies to Invest in RI

An Indian investor has been interested in investing in the construction of Bali`s Buleleng international airport, an official said. “The investor is grouped undertheIndianconstruction firm GVK Group, and expressed its interest during a meeting with Bali Governor Made Mangku Pastika on Wednesday,” Bali Regional Government Spokesman Ketut Teneng said here last month.

Twenty Spanish companies are ready to invest in Indonesia`s energy, electricity, transportation, telecommunications, infrastructure and manufacturing sectors, a minister said. “They seriously intend to invest in Indonesia after they had studied the good investment prospects in the country as reflected by consistent economic growth,” Coordinating Minister for Economic Affairs Hatta Rajasa said after chairing a coordination meeting on a state enterprise rightsizing program here recently. The plan to invest in Indonesia surfaced when Spanish State Secretary of Foreign Trade Alfre-

Teneng said the meeting between the governor and GVK Group leader Krishna Reddy was a follow up of a meeting previously held between the Indian business representatives with the Bali Regional Legislative Assembly (DPRD) chairman, Anak Agung Ngurah Oka Ratmadi. The visit was also as part of the signing of a cooperation agreement between President Susilo Bambang Yudhoyono and the Indian government. The GVK group is a construction firm head-quartered in Mumbai, India. GVK group has been successful in renovating Mumbai and Bangalore airports. PT Angkasa Pura I, Indonesia`s airport operator, has worked together with the GVK group in the construction of a new airport in Yogjakarta with an investment worth Rp1.5 trillion.

do Bonet, along with a Spanish business delegation, held bilateral talks with officials of the Indonesian Trade Ministry last month, he said. Data from the Trade Ministry show two-way trade between Indonesia and Spain reached US$2.18 billion in the JanuaryNovember 2010 period, a 12.6 percent increase compared to US$1.94 billion in the same period the year before. Indonesia recorded a surplus of $1.62 billion in its trade with Spain in the January-November 2010 period, up 9.60 percent from the same period in the previous year when the figure was

Mitsubishi Corp CEO Ken Kobayashi at a meeting with President Susilo Bambang Yudhoyono here last month.

Lotte to Invest $5 b in Indonesia

$1.48 billion. Last year Spain ranked 14th as the destination of Indonesia`s exports. Indonesia`s exports to Spain included copper ores and concentrates, coal, briquettes, palm oil, natural rubber, industrial monocarboxylic fatty acids, video recording or reproducing apparatus. Meanwhile, Indonesia imported aircraft (helicopters, aeroplanes), unwrought aluminium, new pneumatic tyres, transmission apparatus for radiotelephony, acyclis hydrocarbons, medicaments, and cigarette paper from Spain.

South Korea`s Lotte Group plans to invest up to US$5 billion in a petrochemical project in Indonesia`s Banten province, its chairman Shin Dongbin said. “We plan to invest US$3 billion to US$5 billion in the petrochemical industry,” he said after meeting with President Susilo Bambang Yudhoyono at the Bogor Palace last month. He said Lotte would start a feasibility study for the construction of the project this year and the project was expected to be completed in five

Lotte Group was also mulling to invest in fast food business by opening outlets called Lotteria, he said. Lotte Group is engaged in various business fields. The South Korean company has invested in Indonesia for a quite long time, with retail business as one of its priority businesses in the country.

www.presidensby.info/Haryanto

US Bizmen give High Marks to RI’s Investment Climate

Canada bizmen upbeaton S. Sumatra Canadian businessmen have become interested in investing in South Sumatra because of its big potentials and opportunities. Canadian Ambassador to Indonesia Mackenzie Clugson and an entourage in a meeting with the South Sumatra Chamber of Commerce and Industry (Kadin) here recently said that the investment climate in the province is very promising. Mackenzie Clugson He said the licences and permits issued by the S. Sumatra administration are also very good, which made them become so interested in making an investment in the province. In the meantime, he added, the Canadian companies already engaged in investment in the province need to be developed and promoted. South Sumatra is very rich in oil, gas and coal, which would provide ample opportunities for investment.

Coordinating Minister for Economic Affairs Hatta Rajasa, accompanied by Trade Minister Mari E. Pangestu gave a press statement after accompanying President Susilo Bambang Yudhoyono at his office here last month.

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United States businessmen have given high marks to the investment climate and the removal of many investment barriers in Indonesia. The appreciation was expressed by members of a USASEAN Economic Cooperation Council delegation at a meeting with President Susilo Bambang Yudhoyono at his office here last month. “They appreciated Indonesia`s progress in investment services and the elimination of investment barriers,” Coordinating Minister for Economic Affairs Hatta Radjasa said after accom-

panying President Yudhoyono at a meeting with the US-ASEAN delegation.

agriculture technology and clean energy in their business activity in Indonesia.

Hatta said they are also committed to increasing their investment in Indonesia. “This is a follow-up to last year`s visit by US President Barack Obama who said at the time that his country wanted to be the largest investor in Indonesia and ASEAN,” he said.

Meanwhile, Trade Minister Mari Elka Pangestu said the US-ASEAN Trade Cooperation Council also supported the achievement of maximum results in the economic field in ASEAN cooperation. Mari added that there would be an economic session in the ASEAN Summit and East Asia Summit in Bali next November which will also be participated in by members of the US-ASEAN Economic Cooperation Council.

In relation with Indonesia’s development strategy on the environment, President Yudhoyono asked the US investors to develop

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years` time. Chief of the Investment Coordinating Board (BKPM) Gita Wirjawan said Lotte would realize the investment plan in the near future.

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Property Jakarta Performed Very Strongly in 2010 The world’s fastest growing industrial locations 2011

The world’s most expensive industrial locations 2011 2010 Rank

Cushman & Wakefield’s Industrial Space Across the World 2011, which monitors rents and total occupancy costs in 53 countries, reveals that Jakarta, Beijing and Singapore performed very strongly in 2010.

n the ranking of the most expensive industrial locations around the world, Singapore climbed from 19th position to 4th with a rental increase of 14.9%. Rents in the Greater Jakarta area in Indonesia jumped by 21.7% and in Beijing, by 17.5%. Wira Agus, Associate Director, Cushman & Wakefield, Indonesia, said, “Combination of growing foreign demand, lack of good ready-to-occupy supply and strengthening of IDR/USD exchange rate has resulted in a extreme annual rental growth in 2010, the best in the last 3 years.” Barrie David of the Cushman & Wakefield Research Group said, “This data confirms the sustained presence of Asian locations in the higher reaches of

our ranking. Tokyo and Hong Kong are now firmly established as some of the most expensive industrial locations globally, and seven of the ten fastest growing global locations are in Asia. This is in contrast to 10-15 years ago, and highlights the fast growth and development within an increasing number of Asian markets over the last few years.” ASIA OUTPERFORMS THE REST OF THE GLOBAL INDUSTRIAL PROPERTY MARKET • Seven out of the top ten fastest growing industrial locations in the world are in Asia • Industrial property rents in the continent increased by over 5% in 2010 • Rents fell in industrial locations in most countries around the world last year

2011 Rank

Location

Country

/sq.m/year

2011 Rank

US$/sq.ft/year

Location

Country

Rental growth

London - Heathrow

235.43

29.34

Greater Jakarta Area

Indonesia

21.76%

Tokyo

Japan

183.49

22.87

Beijing

China

17.55%

Frankfurt

Germany

15.83%

Singapore

14.97%

Shanghai

China

14.54%

Porto

Portugal

14.29%

New Delhi - Gurgaon

India

14.29%

Guayaquil

Ecuador

13.00%

Bangalore - Bommasandra Industrial Area

India

11.11%

Gothenburg

Sweden

10.71%

Geneva

Switzerland

163.93

20.43

Singapore

157.08

19.58

Sydney

Australia

145.17

18.09

Hong Kong

China

133.15

16.59

Helsinki

Finland

130.20

16.23

Oslo

Norway

123.58

15.4

Paris

France

123.00

15.33

(N/A)

Abu Dhabi (non-freezone locations)

UAE

121.76

15.18

Source: Cushman & Wakefield

tained its number one position for the tenth year running with an occupancy cost of €235 per sq m per year. Tokyo remained in second place (€183 per sq m per year), and Geneva (€164 per sq m per year) moved up to third from fourth last year.

Industrial commercial property rents in Asia jumped by over 5% last year in contrast to the rest of the world where the occupational market deteriorated in the majority of markets, according to Cushman & Wakefield’s Industrial Space Across the World 2011.

For more information, please contact: Dharmesti Sindhunatha Corporate Marketing & Communications Cushman & Wakefield, Indonesia Tel: + 62 (0)21 25509500 +62 (0)812 1013 512 dharmesti.s@ap.cushwake.com

Globally, rents in industrial locations decreased by around 1.2%. The same decline was true in the U.S. as a whole, and EMEA. London’s Heathrow main-

Visit Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com to access other reports on leading real estate issues, trends and market statistics from around the world.

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.

Construction Goals. Workers are engaged in construction activities at an apartment project in Jakarta. The government hopes to build 1,000 low-cost apartments, a program which was launched under Presidential Decree No. 22/2006 on acceleration of low-cost apartment projects.

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Human Capital 2010 Best Companies for Leadership

Taking a New Direction Many organizations are struggling to determine how to best develop their leaders in a fast changing economic landscape. Despite this challenge, some companies are taking decisive action to change their structures and strategies of leadership – and taking the lead in positioning themselves for success. The results of Hay Group 2010 Best Companies for Leadership show a fundamental shift in how large business organizations function. The Best Companies for Leadership are moving more quickly and completely than others to implement new organizational paradigm: flattening their structures and preparing their leaders to lead effectively within it.

Leadership Must Keep Pace with Organizational Change

he Best Companies for Leadership have refocused their efforts on leadership planning and development while adapting their practices to the challenges of their evolving organizations and strategies. Over the six years that Hay Group has conducted the Best Companies for Leadership Study, the level of commitment to leadership development at all companies has steadily increased – a testament to the growing intensity of the challenges every business faces. This study reveals that leading companies today are structured more like a global neural network; operate as a flattened matrix, where information and authority move in all directions through the organization and around the world, and ad-hoc cross-functional teams are as important in achieving business goals as formal vertical structures. They are helping their leaders become more effective in managing a more diverse, global workforce and concentrating on collaborative strategies to help leaders harness resources from throughout the company while successfully motivating employees to achieve business goals. These Top 20 Best Companies for Leadership have aligned their leadership program to the fundamental business and cultural goals of the company – including a culture of collaboration. These leading companies believe that to be productive going forward, organizations can’t operate from the rules of the past, which were largely around optimization and scale. Organizations have to be dynamic, creative and networked. And those organizations that get there faster will be the future icons of industry. One of the initiatives and practices undertaken by these Best Companies for Leadership is by actively co-creating leadership development programs with executives. With guidance from line executives, these companies carefully choose and support cohorts of younger managers and individual contributors and ask them to develop solutions for actual business needs – not only helping to develop their leadership, but contributing to the transformation of the company itself. This study results apply to all organizations based on 3,769 individuals from 1,827 organizations participated in the study with the following regional and revenue distribution (Figure 2) The Best Companies for Leadership Outperform Others over the Long Run Are the initiatives and practices undertaken by the Best Companies for Leadership really good for business? Hay Group believes they are, and hard evidence supports that conclusion. These companies have consistently outperformed the S&P 500 in shareholder returns (see figure 3). They have emerged more quickly from the recession. And with their forward looking policies, they are poised to succeed in both emerging and mature markets. What We Can Learn From the Best The Best Companies for Leadership employ the following practices (see figure 1 on Global 2010 Top 20 Best Companies for Leadership): 1. Everyone is Leading The continuing economic uncertainty rewards businesses that achieve results with fewer human and financial resources. The Best Companies for Leadership create efficiencies by encouraging or even requiring collaboration and

Bita Budiariani Consultant Hay Group Jakarta

Ed Krancher Managing Consultant Hay Group Jakarta

own geographies is one of the keys to the company’s success. The company have a global view and clear global direction, and local teams are empowered to apply it differently to meet the needs of the local market.

Figure 1: Global 2010 Top 20 Best Companies for Leadership. Global Top 20 Best Companies for Leadership 1

General Electric

ABB Ltd

Procter & Gamble

Microsoft

Intel Corporation

PepsiCo

Siemens

Goldman Sachs

Banco Santander

Hewlett-Packard

The Coca-Cola Company

Unilever

McDonald’s Corporation

Cisco Systems

Accenture

FedEx

Walmart

Pfizer Inc

Southwest Airlines

BASF

3. Adapting Leadership to these Changes With workforces at the Top 20 becoming more diverse, it should be no surprise that all of these companies are working to help managers adapt their approach to leadership more quickly and completely than other businesses. They are also helping leaders in mastering collaborative strategies to harness resources throughout the company, while successfully motivating employees to achieve business goals.

Figure 2: Regional and Revenue Distribution of 2010 Best Companies for Leadership Study.

Regional distribution

Adapting in Leadership

Revenue distribution

Region

Per cent

Annual revenue in US$

Per cent

Europe/Middle East/Africa

27.5

Under 500 million

32.0

North America

26.6

501 million to 1 billion

13.5

South America

23.7

1 billion to 5 billion

16.4

Asia Pacific

22.3

6 billion to 10 billion

6.6

Over 10 billion Total

100.0

Source: 2010 Best Companies for LEadership Study

My company has a program to help our leaders improve their cross-cultural leadership.

We have programs designed to develop leaders who can creatively bring together resources across different parts of this organization 100

31.5

Total

100.0

Source: 2010 Best Companies for LEadership Study

60 40

Figure 3: Global 2010 Top 20 Best Companies for Leadership Vs. S&P 500.

Top 20 vs S&P 500

20 14.42

Top 20 S&P 500

13.84

10 Per cent

Lusi Lubis Managing Consultant Hay Group Jakarta

Top 20

6.17

1.27

0 (0.17)

(0.76)

(2.17)

(5)

(6.77)

(10) 1 year total return

3 year total return

5 year total return

10 year total return

Source: S&P Compustat data as of 7/30/2010

cross-functional leadership and innovation, allowing them to flatten their structures and eliminate resources in separate silos. Everyone, from everywhere, is leading In this company, everyone at every level has the opportunity to develop and practice the capabilities needed to lead others.

My organization’s local leaders are encouraged to participate in decisions made at headquarters.

Our incentive system rewards collaboration across the business.

100 80 60 40 20 0

Top 20

All Companies

The Best Companies for Leadership are not looking for leadership and innovation only at the top of the hierarchy; they expect everyone, at all levels, to exercise leadership and bring value to the enterprise. This openness, even eagerness, for non traditional sources of leadership applies to every corner of the organization, including subsidiaries and local leaders, who may not share the same culture or nationality as the CEO. The Top 20 are also significantly more open to ideas from subsidiaries and have formalized the practices by establishing structures that actively seek out ideas worth copying and disseminate them throughout the company. When ideas and leadership can come from almost any direction,

a collaborative approach to work and leadership is absolutely necessary. The best companies have created reward structure to encourage collaboration, while at the same time institutionalizing its practice. Siemens, one of the 2010 Best Companies for Leadership, is comprised of product groups specializing in industry: energy and healthcare – strong elements of a matrix organized company. Siemens believes one of the keys to its success in offering customers complete and integrated solutions that draw from different product groups is the strong collaboration between global and local managers in their respective roles. Moreover, Siemens is working to encourage and institutionalize this focus on collaboration by linking 20 percent of top executives’ discretionary bonus payments to collaboration.

petition from sophisticated and capable local business that are taking root there.

2. Diversity is Valued as a Business Asset Every large enterprise now competes in more than one country; most are engaged virtually everywhere around the world. But the term ‘global marketplace’ is misleading, because every market has different needs and norms. The strongest companies are actively seeking greater cultural diversity in their leaders and workforces, and mining innovations from all corners of their businesses.

The gap between the best and the rest is even wider when it comes to diversity. The Top 20 are responding to the challenges of competing successfully in a global economy by ensuring that their workforce and leadership reflect the diversity of their markets. These leading companies uniformly see diversity as an advantage. The top companies actively seek greater cultural, geographic and gender diversity within their organizations and are more likely to tap local leaders to manage local offices rather than sending out headquarters staff. They also follow through with programs and practices to help their leaders manage their diverse workforce more effectively.

Globalization today has different implications with centre of gravity for growth is shifting toward Asia. Predicted growth rates in India and China are double those of Europe and North America. Companies competing for growth must develop and tailor products and services that meet the needs of each market – while facing intensifying com-

Diversifying their workforces My company actively recruits cultural minorities.

This company sees working with multiple cultures more as an enrichment than a threat.

My organizations sponsors classes, workshops, and/or seminars for leaders on managing a culturally diverse work force 100 80 60 40 20 0

Top 20

All Companies

Banco Santander, one of the 2010 Best Companies for Leadership, believes that empowering people to make decisions in their

All Companies

The picture that emerges of this year’s Top 20 is of a group of companies moving more quickly than other companies to flatten their business structure and diversity their workforces, with the goal of improving their efficiency and competitive advantage in markets around the world. At the same time, they are also adapting development tools and their reward structure to equip managers with the leadership skills their changing environments demand and incentivize them accordingly. 4. Building a Sustainable Workforce The growth of individualism and changing values not only affects how organizations approach markets and customers; it also affects talent recruitment and retention. Those effects are amplified by another megatrend Hay Group tracks; the demographic change exemplified by the retirement of the baby boom generation. Facing the need to recruit, manage and retain younger leaders who may not share the traditional focus on career to the exclusion of family – and whose value often include the expectation of corporate leadership in social and environmental stewardship – The Best Companies for Leadership have adopted accordingly. Responsible practices Our leaders are change agents who initiate change towards higher environmental standards.

My organizations uses corporate social responsibility to recruit employees.

Helping employees achieve work-life balance is a priority for this company.

100 80 60 40 20 0

Top 20

All Companies

The top companies have broadened their view of a corporation’s responsibility toward its own workforce and to the societies and environments in which it operates. They adopt sustain-

able, energy efficient and other socially responsible practices as well as promote this purpose driven leadership when it comes to recruiting. At the same time, these leading companies are becoming more flexible about career paths, and doing more to help employees manage the competing demand of work, home and family. By adding an extra dimension of value and purpose to a work environment with strong leadership opportunities at all levels and offering greater flexibility in managing work life, the Best Companies are gaining competitive edge in the battle for the best available talent. That recruiting edge helps the Top 20 retain their competitive advantage, continually recharging their workforce around the globe with high potential young managers and nurturing the next generation of innovations in leadership and business that distinguish the Best Companies for Leadership. About Hay Group Hay Group is a global consulting firm that works with leaders to turn strategies into reality. We develop talent, organise people to be more effective, and motivate them to perform at their best. We have over 2600 employees working in 86 offices in 49 countries. We work with over 7,000 clients across the world. Our clients are from the public, private and not-for-profit sectors, across every major industry, and represent diverse business challenges. Visit www.haygroup.com.

These Top 20 Best Companies for Leadership have aligned their leadership program to the fundamental business and cultural goals of the company – including a culture of collaboration. These leading companies believe that to be productive going forward, organizations can’t operate from the rules of the past, which were largely around optimization and scale. Organizations have to be dynamic, creative and networked. And those organizations that get there faster will be the future icons of industry.

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Photo Essay Singapore’s Fantastic

Public Transportation “We Keep Your World Moving”, the sentence is able to give us general picture of a city of pleasant urban planning, where the public transportation runs neatly, clean, and fast. TExt & photos by Nandi Nanti

ingapore has indeed been successful in the realization of spatial and regional planning. People can easily access public transportation. When Singapore became one of the world’s trading powers, the lion city transformed itself into becoming a state-of-the-art island-city. The combination of good infrastructure and strict regulations have led to significant results. Singapore is very keen in optimizing the use of land. Understandably, as Singapore is no bigger than Bali with a population of around 1.7 million inhabitants. To reduce traffic jams, the government of Singapore is firm on the issuance of licensing and taxation. For example, cars older than 10 years are not allowed on the streets unless its owners are prepared to pay tax equal to the price of the car. Besides raising car tax, the Singaporean government also distinguishes the type of car in accordance with the color of the number plates. Black and white cars can be used everyday, while yellow cars are for Saturdays and Sundays and only for three hours a day. As such, Singaporeans prefer to use public transportation, such as MRT (Mass Rapid Transportation) and public buses which can be accessed quickly and easily. Not only taxes and differentiation time of car-use are applied strictly, the Singapore government also imposes road tax on certain streets. The average price is around 1-2 dollars each way. So car owners have to spend money on road tax around 10-12 dollars every single day. Payments are not made with cash but with a smart card or subscription card. Strict regulations have led to good urban planning, which remains aligned to the community. So, the slogan “We Keep Your World Moving” is not only a fresh breeze of air but also a reality. Cheap and comfortable public transportation is also a mainstay of Singapore in terms of attracting tourists. Singapore’s tourism industry is growing very well; approximately 8 million visitors come to this city each year.

March 17, 2011 B7

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B8 March 17, 2011

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Executive Highlights Finance Minister Agus Martowardojo said the government was in a “good” fiscal position in the face of rising oil prices. The comments were made following a recent meeting with Vice President Boediono to discuss the economy. Agus said rising oil prices have not impacted the government’s macroeconomic assumptions yet, but said it was closely monitoring the situation. The minister reported that the Indonesian crude price (ICP) benchmark for February hit US$112/barrel compared to US$91/barrel for January, but noted that the 12-month ICP average was still around US$86/ barrel. The government’s current assumption is US$80/barrel for the 12-month ICP average. Agus was confident the budget deficit could be kept below 2% of GDP even if the 12-month ICP average reached US$100/barrel. The administration is currently projecting a budget deficit of Rp125 trillion or 1.8% of GDP in 2011. Agus said his ministry would move to adopt cost savings measures on routine spending that could help save up to Rp16 trillion this year. The finance ministry also has around Rp50 trillion in unspent cash carried over from 2010 that would provide a cushion for growing fiscal risks. The minister said the rupiah’s appreciation was also having a positive impact on the government’s fiscal position.

Bank Indonesia (BI) again indicated it would not resist further rupiah appreciation to contain rising consumer prices, following its March policy meeting. As of 9 March, the rupiah was trading at a three-year high of Rp8,780-8,790 to the dollar, up around 2.2% year-to-date. A number of traders see the rupiah to strengthening to Rp8,5008,600 to the dollar over the medium term due to continued overseas demand for Indonesian capital assets and expectations the country could receive an investment grade rating soon following recent upgrades by Fitch and Moody’s. BI, meanwhile, also asserted that its tight monetary policy bias remained intact and that it was prepared to raise rates as necessary to fight inflation, despite keeping its benchmark rate unchanged at 6.75% in March after a 25 basis point hike in February. The central bank said the rupiah’s appreciation would not hurt Indonesia’s competitiveness given that other emerging markets have also seen their currencies appreciate significantly.

units per year currently. Mitsubishi is also looking to invest in the Japanese government-sponsored Metropolitan Priority Area project, which involves building infrastructure such as access roads and power plants in Jakarta and other urban areas across the archipelago.

U.K. Investment giant Vallar Plc. has finalized its US$3 billion reverse takeover deal with leading Indonesian coal miners Bumi Resources and Berau Coal. Under the agreement, Vallar will pay US$1.4 billion for a 25% stake in Bumi, and US$740 million in cash and US$830 million in new shares for a 75% stake in Berau. The Bakrie Group, which controls Bumi, will become the largest stakeholder in Vallar with a 43% stake in the firm. Vallar shareholders, led by British financier Nathan Rothschild, will control a 32.1% stake. The Roeslani family, which controls Berau, will own the remaining 24.9% stake. Vallar will be renamed Bumi Plc. and will seek listing on the London Stock Exchange. Indra Bakrie, the top executive in the Bakrie Group, will be chairman of the new firm. Rothschild will act as co-chairman. The U.K. financier has previously stated that the new entity would become the world’s largest thermal exporter to China by 2014 with output of 140 million tons per year. Combined, Bumi and Berau have coal reserves totaling more than 12 billion tons.

is looking to open 20 new outlets this year to bring the number of stores it operates to 100. Chairul also said his group plans to participate in the government’s economic corridor policy to establish industry clusters and growth centers across parts of the country.

GDP GROWTH (%)

By Quarter

Year on Year

165

155

145

135

4 3

125

115

105

95 07

Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4

2005

Japanese conglomerate Mitsubishi outlined plans to invest up to US$20 billion in Indonesia over the next 5-10 years.

The Para Group has secured a US$450 million loan from a syndicate of nine banks.

The announcement comes following a recent meeting between President Yudhoyono and Mitsubishi chief executive officer Ken Kobayashi. Projects that Mitsubishi plan to invest in include a US$4.6 billion nickel smelter facility in Halmahera, North Maluku in a venture with France’s Eramet and state miner Aneka Tambang; the US$2.8 billion Donggi-Senoro LNG plant in Sulawesi in a venture with state-owned Pertamina and Medco Energi; the US$750 million railway project linking Soekarno-Hatta international airport with Central Jakarta; and a US$250 million automobile manufacturing facility to boost the firm’s production capacity to 500,000 units per year by 2013 from around 100,000

The local conglomerate is controlled by business tycoon Chairul Tanjung. The lenders for the deal included JP Morgan, Citibank, Credit Suisse, HSBC, Standard Chartered Bank and RBS bank. The loan has a maturity of five years. Chairul said the funds will be used to finance expansion plans for the group’s affiliates. He said Para was looking to expand its media business, which already includes national television broadcasters TransTV and TV7, with a major studio complex near Jakarta. He commented that the group was looking to establish a mini-market business to take advantage of this fast growing retail sector. Meanwhile, hypermarket chain Carrefour Indonesia, which is 40% controlled by Para Group,

Index* 2000=100

40% higher than its initial target of Rp5 trillion. Bids placed totaled more than Rp20 trillion, highlighting continued demand for Indonesian government debt. The latest bond auction saw the sale of Rp1.45 trillion in one-year treasuries at a yield of 6.48%, Rp2.5 trillion of five-year bonds at a yield of 8.02% and Rp3.25 trillion of 15-year bonds at a yield of 9.39%. To date the finance ministry has sold more than Rp40 trillion worth of bonds in the domestic market to help finance a projected Rp125 trillion budget deficit this year. The ministry is also looking to raise up to US$4 billion (Rp35 trillion) over the course of the year through the sale of global bonds, including an Islamic bond issue. The government last sold debt on the global market in January 2010 with a US$2 billion dollardenominated bond issue.

asian export. Financial details were not disclosed. Under the deal, coal from Cahaya Energi will be secured over two years from a mine in East Kalimantan. Peabody president Richard Navarre said the firm planned to increase its sourcing of Indonesian coal as it expands its coal trading and brokerage operations to serve highgrowth Asia-Pacific markets. The company currently sources a total of 5.5 million tons of coal from Indonesia. The chief executive said demand for seaborne coal was projected to exceed one billion tons this year on demand growth in the Asia-Pacific, and noted that Indonesia would play a pivotal role as the world’s largest supplier of seaborne thermal coal. Peabody is the world’s largest private-sector coal firm and supplies 10% of power in the U.S. and 2% of electricity worldwide.

State-owned railway operator Kereta Api Indonesia (KAI) has secured a Rp4 trillion loan from Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) U.S.-based Peabody Energy has signed to fund expansion. KAI said the a deal with local funds would be used to purchase firm Cahaya Energi 100 locomotive engines for its Java railway lines, 44 locomotive Mandiri to source two engines for South Sumatra, 1,200 Local carrier Wings coal carriage trains and 1,200 car- million tons of coal for Air has signed a go trains. The railway firm said contract to purchase 15 ATR-72/500S from european aircraft Selected Instant Indicators manufacturer ATR.

The Finance Ministry raised Rp7 trillion in its latest debt offering on 8 March,

the new equipment would help it meet growing demand for the transportation of goods in Java, as well as support a recent contract to transport coal for Tambang Batubara Bukit Asam in South Sumatra. BNI president director Gatot Suwondo said the deal reflected the long-term prospects of Indonesia’s railway sector, and underscored the bank’s commitment to strengthen the country’s infrastructure. He said the loan would fund around 85% of the expenditures for the locomotive engines and carriage trains, with the remaining amount to be funded by KAI. The loan will have a 10-year tenor with a floating interest rate.

Index

2006

2007

2008

2009

2010

INFLATION 66 CITIES

109

Food WPI

100

97 A

Jun

Aug

Nov

J 11

2010

EXPORT AND IMPORTS (US$ Million) Exports

16,000

Imports

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

Jan 10

Mar A

Jun

Aug

2010

Dec Jan10 11

*Q4 2000=100

COMMODITY PRICES

Sumatran Light US$/barrel

Mal$ per metric ton 4,500

Crude Oil-LHS

Palm Oil-RHS

4,250

4,000

3,750 M$ 3,550

3,500 3,250 3,000

$79.7

2,750 73 2,500

M$ 2,595 68

2,250 F- Mar A 10

The firm is looking to sell around eight hectares of land in its Rp21 trillion, 50-hectare Rasuna Epicentrum property project at the Kuningan business district to local real estate firm Agung Podomoro. Now under development, the Rasuna Epicentrum superblock will include high rise office buildings, small business offices, an apartment and condominium complex, shopping mall and entertainment center. Agung Podomoro has appointed Deutsche Bank to help seek financing for the deal. Bakrieland corporate secretary Nuzirman Nurdin said the divestment was part of the firm’s strategy to seek out strategic partners for its major projects. Bakrieland Development is part of the Bakrie Group. Agung Podomoro is owned by the Haliman family. It operates a number of shopping malls in Jakarta including Senayan City and Block M Square as well as housing estates and apartment buildings in the capital.

Top pharmaceutical distributor Enseval Putera Megatrading raised Rp300 billion from its recent secondary offering.

The bonds, which will have a tenor of one to four years, will be offered in April. BCA Finance director Petrus Santoso Karim said the firm’s total financing was projected to reach Rp17.9 trillion this year, up 20% from 2010 on the back of strong demand for cars. He projects 2011 profits to rise around 10% year-onyear to Rp600 billion. The executive said the company also plans to open three new branches in eastern Indonesia to add to the 37 branches it currently operates. Fitch Ratings has assigned a national long-term rating of AA+ (idn) for the debt. The ratings agency said BCA Finance’s rating was underpinned by the financial support and brand affiliation provided by its parent company, leading lender Bank Central Asia (BCA).

The firm said the funds would be used to support its expansion plans over the next two years, which include establishing a new distribution network in Sumatra, building several new distribution centers across the country, expanding its warehouse capacity and upgrading existing distribution networks. Enseval Putera distributes a wide range of goods, including consumer healthcare products, prescription drugs, over-the-counter medicine, medical equipment and veterinary products. The company is majority owned by leading healthcare manufacturer Kalbe Farma. The distribution of Kalbe products accounts for around 70% of Enseval Putera’s revenues.

Property developer Bakrieland Development is finalizing a Rp1.3 trillion deal to divest prime real estate in the Jakarta central

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

105.5

103

Feb- Mar 10

Autmobile financier BCA Finance has appointed Bahana Securities, DBS, Standard Chartered and Trans Asia Securities to underwrite its Rp1.5 trillion bond issue.

business district.

106.8 106.9

General 106

Financial details were not disclosed. The order represents a conversion of options taken in 2009, when Wings Air placed its first order for 15 of the 72-seat turboprops. The carrier first introduced the aircraft in January last year, and it is currently operating 10 of the turboprops. The deal is part of the airline’s strategy to improve connectivity to smaller cities and strengthen its regional network in Indonesia to enable it to feed its parent company Lion Air’s larger network. Turboprops are considered more fuel efficient than jets for carrying 50-70 passengers over short distances. With the new aircraft, Wings said it would develop new routes to Sumatra, Sulawesi and Java and connect to larger cities like Surabaya and Denpasar. The latest purchase makes Wings Air ATR’s largest customer in Southeast Asia.

The lenders included Mizuho Bank, OCBC Corp., HSBC, ANZ Panin Bank, Bank Mandiri and Bank Danamon. SAN Finance president director Susilo Sudjono said the dollar-denominated loan would help support the firm’s credit expansion. He said around 30% of the company’s financing deals were dollardenominated. The chief executive projected total financing this year to reach Rp3.6 trillion, up 16% from 2010, on solid demand for heavy equipment from the mining and commodities-related industries. Sales of heavy equipment exceeded 10,000 units last year, compared to 8,000 units in 2009. Heavy equipment sales are projected to reach 12,000 units this year. SAN Finance is 60% owned by diversified conglomerate Astra International and 40% by Japan’s Marubeni.

Jun

Aug S 2010

J 11

Heavy equipment financier Surya Artha Nusantara (SAN) finance has secured a US$145 million (Rp1.3 trillion) loan from a consortium of banks.

SECTION

The President Post

Industrial Estate

Display until April 17, 2011 /// N0. 22 www.thepresidentpost.com

Indonesia Plans More Industrial Zones to Meet Growing Relocation Demand President Susilo Bambang Yudhoyono has ordered the establishment of at least two industrial centers in Papua and these should be completed within three years’ time. These industrial centers will be built in Manokwari in West Papua and Timika in Papua Province. The two industrial zones will serve local people’s need for industrial products which they usually obtain from outside of the island.

By Leny Vinda

espite assumptions about regional economic slowdown, the Indonesian economy has seen tremendous growth in direct foreign and domestic investments as indicated in a 30 percent jump in the occupancy of industrial centers. Compared to the situation in 2009, last year was a harvest year for Indonesia given the 30 percent increase in industrial estate occupancy, says Hendra Lesmana, chairman of the Association of Indonesian Industrial Estates. This is presumably caused by two factors—an increase in demand from domestic manufacturing companies and relocations by such companies from abroad. One simple example, he says, is that even in the area of Bekasi on the eastern outskirt of Jakarta, the demand for industrial space has outgrown supply. Nevertheless, he laments the fact that industrial centers are still very much centered on the island of Java when the truth is that many other parts of Indonesia can actually be developed as industrial zones to accommodate rising demand for relocations. Lesmana has renewed his appeal for the government to act more quickly to provide more such centers in order to bolster the economy and at the same time impact society. He says that the presence of industrial estates usually brings forth various benefits such as provision of asphalted roads, electricity, good sanitation system, water management system, sport facilities, residential areas, schools, and other amenities, apart from the fact that industrial estates usually employ thousands of workers. For instance, at present there are an estimated 1.5 million people working at 49 estates across Indonesia. Take Batam’s industrial zone, for example. This tiny Indonesian island near Singapore has for decades been the home to various multinational export-oriented companies. It is even becoming increasingly attractive year by year, says Doli, the owner of Batam-based Tunas Industrial Estate. “It’s simple,” Doli adds, “demand has outgrown supply of industrial space on the island.” Indonesia’s 49 industrial estates occupy 28,000 hectares of land in 13 provinces or 24 regen-

Indonesia’s 49 industrial estates occupy 28,000 hectares of land in 13 provinces or 24 regencies/ municipalities. More than 6,400 manufacturing companies from various countries are operating there.

The President Post/Nandi Nanti

cies/municipalities. More than 6,400 manufacturing companies from various countries are operating there. This is why Gita Wirjawan, chairman of BKPM—the Investment Coordinating Agency—is upbeat about Indonesia’s ability to draw in more foreign direct investments in the years ahead. This optimism is based on the fact that during the second quarter of 2010 alone investment commitments had grown well over 40 percent, which is far above the government’s expectation of only 15 percent. Wirjawan mentioned two manufacturing sub-sectors in which there will be more foreign investments this year—footwear and electronics. “This is a testimony to foreign investors’ confidence toward Indonesia that our investment climate has improved a lot,” Wirjawan says. The BKPM chief further explains that a number of heavy machinery manufacturing companies from the United States are planning to relocate to Indonesia. Wirjawan explains that the purpose seems to be to grab the

Southeast Asian market opportunities.

“From London they go to New York and then to Paris and Rome. So when they see a USbased multinational company relocating to Indonesia, that would give tremendous impact on the attitude of investors from the rest of the world,” Gita Wirjawan, Chairman of BKPM (The Investment Coordinating Agency)

American investors now have a very different view about doing business in Indonesia. In the past they only looked at China, Thailand, and Vietnam, he says, but today they know there is Indonesia with similar charms and a large domestic market plus political stability and much improved macro-economic condition. Wirjawan believes that the relocation of American companies to Indonesia will have multiplier effects on the global investment map because investors talk to each other. “From London they go to New York and then to Paris and Rome. So when they see a USbased multinational company relocating to Indonesia, that would give tremendous impact on the attitude of investors from the rest of the world,” Wirjawan says. Now, in order to properly accommodate industrial relocations, Indonesia needs to provide more industrial space complete with international-standard infrastructure. To realize this, the government is working with the private sector

and experts from universities to open up at least 10 more industrial zones in the near future. In Makassar, the container yard of PT Kawasan Industri Makassar will be built this year in realization of a memorandum of understanding involving PT Pelindo, KIMA and Tonasa. Meanwhile, President Susilo Bambang Yudhoyono has ordered the establishment of at least two industrial centers in Papua and these should be completed within three years’ time. These industrial centers will be built in Manokwari in West Papua and Timika in Papua Province. The two industrial zones will serve local people’s need for industrial products which they usually obtain from outside of the island. Apart from that, Indonesia is also building at least five industrial centers specially for processing crude palm oil. This will elevate Indonesia as the world’s number one producer of CPO and its derivatives. The five CPO processing centers will be located in West Java, Riau, East Kalimantan, eastern Sumatra, and in Food Estate Papua.

Meanwhile, Indonesia and Singapore have signed an agreement to develop special economic zones (SEZ) in Batam and Bintan Island. The development of SEZ is expected to boost investors` confidence. If the SEZ project in Batam and Bintan proves successful, similar schemes may later be developed in other parts of Indonesia. People are optimistic about this venture because the cooperation project will combine appropriateness, synergy and competitive edges of Singapore and nearby Riau islands where Batam’s industrial zone is situated. Batam is strategically located within an international shipping route between the Indian and Pacific Oceans. It lies only 20 kilometres to the southeast of Singapore, one of busiest seaports in the world. With all these activities going on, one can be optimistic about industrial centers driving the economy faster than expected and in the process elevating Indonesia into a higher plateau as a newly-industrialized country in the not-too-distant future.

Your Best Location for Petrochemical & Steel based manufacture plant JABABEKA

INDUSTRIAL ESTATE BANTEN

Please visit our web site :

www.jababeka.com

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C2 March 17, 2011

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Industrial Estate Manufacturing Companies Prefer a Fully-Service Industrial Estate Jababeka is the first industrial estate developer to list on the Indonesian Stock Exchange. Its entry to the Indonesian bourse in 1994 has opened the way for other players to follow.

By Leny Vinda

ne of Indonesia’s leading industrial estate developers contributing significantly to economic growth is PT Jababeka Tbk. Since 1989 the company has been providing industrial facilities for companies to manufacture various products. Jababeka is the first industrial estate developer to list on the Indonesian Stock Exchange. Its entry to the Indonesian bourse in 1994 has opened the way for other players to follow. After having successfully developed the Jababeka Industrial Estate in 1989 with the provision of manufacturing infrastructure, the company saw in 1992 a rising need for residential commercial estate in rhythm with the influx of tenants. Residential houses were built for the tenants’ workers and in a short period of time, the industrial estate had to expand way beyond the original purpose of providing manufacturing facilities. Jababeka swiftly became an integrated industrial center The Company’s flagship development is the 5,600 hectare fully integrated township called Kota Jababeka in Cikarang, east of Jakarta, now home to more than one million inhabitants. The township is strategically located and easily accessible by toll road and railway system. Kota Jababeka is situated 35 kilometer east of Jakarta’s Central Business District, 55 kilometers from Tanjung Priok harbor and 65 kilometers from the Soekarno-Hatta International Airport. Jababeka also runs a 1,000 hectare industrial land in Cilegon, Banten, 85 kilometers west of Jakarta and more than 6,000 square meters of office space in Menara Batavia, Central Jakarta. Jababeka’s mission expansion began in 1996 when it integrated the work of providing industrial facilities to the development of an integrated industrial complex. Since then the company has become a true township developer which provides various needs, including a golf course and an education park.

Frans Kansil

I saw the transformation from rural village into a modern industrial city, free from pollution, a safe place to work with a lot of pleasant trees.

Jababeka started its business by developing the industrial estate which is now home to more than 1,500 local and multinational companies, such as Unilever, Samsung and Mattel, and well-known national companies such as United Tractors and ICI, all of which employ over 600,000 workers, which serve as the main market for the residential and commercial estates, as well as for the company’s other products.

Based on this successful experience, Jababeka has since 2007 started to realize its beyond-property theme by building power plant and dry port projects, which further complete and enhance Kota Jababeka as a truly all-in-one industrial center. The company’s strategy is to establish a business that creates critical mass for other businesses. With this strategy in mind, Jababeka started its business by developing the industrial estate which is now home to more than 1,500 local and multinational companies, such as Unilever, Samsung and Mattel, and wellknown national companies such as United Tractors and ICI, all of which employ over 600,000 workers, which serve as the main market for the residential and commercial estates, as well as for the company’s other products. Jabebeka’s core business activity is to expand, integrate and create a demand for a full range of industrial, residential, commercial and infrastructure developments. This is divided into eight segments, namely industrial, residential, commercial, infrastructure services, education, energy, dry port, and support & leisure facilities. In this way, the segments are inter-related to support each other in providing the best of Jababeka’s services to investors, buyers and customers at large. A statement by Jabebeka says that it has become the “home to multinational tenants”, an independent city complete with modern infrastructure, a wide variety of housing units, educational and commercial estates and numerous other business and leisure facilities. It also says that Kota Jababeka has been confirmed as an in-

dependent city with a million opportunities and great potential. The company has also become a pioneer in large- scale property development and is committed to giving the best quality service available. At least 30 countries are represented in this new city, including the US, United Kingdom, France, Germany, Australia, Japan, China, Korea and others. They live in an enclave some 30,000 houses, eight hotels and apartments. On the education side, the city has 31 kindergartens and play groups, 18 primary schools, 32 junior high schools, 37 senior high schools, 36 educational institutions/language training centers, and higher learning institutions, the largest of which is President University. There are also 55 medical centers and an international hospital, 24 shopping centers, 21 music and entertainment lounges, 16 clubs & fitness centers, a golf & country club, and two driving ranges. Jababeka currently has eight subsidiaries that have all been established to manage real estate, infrastructure and supporting businesses. This industrial estate developer also boasts environmentallysound utilities such as clean water through its own water treatment plant. High-quality clean water is a tradition for healthy living in Jabebeka, the company says. Another good thing about living in Jababeka is being in the midst of a multinational surrounding. The presence of expatriates and workers from 30 countries provides good opportunity for building a business network. Unlike elsewhere, Jababeka has a clear vision for the future in that its development projects are based on a clear master plan that takes into account the needs of future generations. This explains why its development concept is reviewed every 10 years to ensure sustainable development. The master plan clearly lays out guidelines on what land to be used for residential, commercial, industrial or institutional development. Also, density of development, building efficiency and building height calculations are included in the master plan that itself is reviewed every five years. The bottom line is that Kota Jababeka aims to remain a distinctive, self-sustained, and ecologically friendly city. This is the reason why it continues to synergize the industrial environment with the new intellectual hub and residential environment while maximizing the potential of its green infrastructure investment. Another industrial estate Jababeka is proud of is situated in Cilegon, Banten province, on the westernmost tip of Java Island. It is a superb 1,000 hectare industrial estate catering to medium and heavy industries known as Jababeka Cilegon Industrial

Park. It is designed to offer a full range of industrial estate products to meet the needs of industrial clients. Development of this industrial park includes creation of a comprehensive and high-capacity infrastructure system with the basic provision of telecommunication, water, and electricity.

Cilegon’s strategic location has already attracted a number of large petrochemical and heavy steel industries, such as Krakatau Steel, Asahi Mas and DOW Chemical. It is also close to such popular tourist destinations as Tanjung Lesung Resort, Anyer and Carita beaches. Other attractions of the Ci-

legon area are its abundant supply of labor, wide-ranging primary manufactured goods, plentiful land supply, and easy access to many markets for products and services. With all these developments going on, PT Jababeka Tbk is confident about moving ahead as it continues to contribute to the

enhancement of Indonesia’s industrial progress. Jababeka’s Chairman SD Darmono believes in the philosophy of starting small but moving fast. That was what he did in 1989. Now his businesses have moved so fast and flourished so well that Jababeka is itself a national asset.

The President Post

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March 17, 2011 C3

Industrial Estate Industrial Estates Flourishing, More Manufacturing Centers to be Built Outside Java In 2009 the government began to look into the possibility of opening industrial estates outside of Java Island. At least 10 industrial estates will be opened for processing and manufacturing sector which will be adjusted with the natural resource potential of those areas.

By Leny Vinda

n the 1970s the Indonesian government started to develop industrial estates in an effort to bolster economic growth through the enhancement of the manufacturing sector. Today, the effort has paid off with more than 6,000 companies operating in various bonded zones across the archipelago. Right from the ouset, the government designed industrial estates to provide developed industrial land with adequate infrastructure to support the promotion of direct foreign and domestic investments. It was also meant to encourage regional development. Initially, the industrial estates were built in Jakarta, Surabaya, Cilacap, Medan, Makassar and Lampung in cooperation with local and provincial governments. Today, such estates are present in 13 provinces across Indonesia and are the centers of Indonesia’s manufactured products for domestic and export markets. According to the Himpunan Kawasan Industri (HKI)—the Association of Industrial Estates Companies—industrial estates are acting as a non-fiscal incentive to direct foreign and domestic investments in manufacturing sector. Not only do such estates provide ready to build land lots and standard factory buildings, they also assist in the process of obtaining permits, land titles, electricity, water, telephones, waste water treatment. More importantly, they provide continuous management of the estates to support companies therein. Development of industrial estates has undergone several stages. In 1989 the government issued Presidential Decree 53/1989 concerning Industrial Estates, which opened the industrial estate business to private companies, and set the legal and technical standard requirements for development and operation of the estates. In 1996 the decree was replaced by the Presidential Decree 41/1996, which sets the guidelines for industrial estates in Indonesia. This 1996 decree defines industrial estate as “a center for industrial activities with provisions of infrastructure and supporting facilities, which is developed and operated by a licensed industrial estate company”. Based on this decree, the purpose of industrial estate development is to accelerate industrialization in the regions; facilitate industrial activities; direct industrial location; and strengthen environment friendly industrialization. Today HKI has 59 group members in 13 provinces, covering total gross area of about 29,000 hectares. There are more than 6,000 manufacturing companies operating and employing some 1,500,000 people. HKI was established on June 20, 1988 as the association of companies engaging in the development and management of industrial estates in Indonesia. The founding members elected Halim Shahab, then the President Director of PT (Persero) JIEP, as the first Chairman, who served for three consecutive terms. In June 2008 the Fifth National Congress of the Association elected Hendra Lesmana, GM Marketing of PT Bekasi Fajar Industrial Estate, as the Chairman for the period of 2008-2012. In 2009 the government began to look into the possibility of opening industrial estates outside of Java Island. At least 10 industrial estates will be opened for processing and manufacturing sector which will be adjusted with the natural resource poten-

tial of those areas. This was meant to implement President Susilo Bambang Yudhoyono’s Decree 24/2009 on further development of industrial centers to boost economic growth. Officials from the Ministry of Industry are working with experts from the University of Indonesia (UI) and Bandung Institute of Technology (ITB) to realize this plan, according to Dedi Mulyadi who chairs the Agency for Industrial Research and Development. The president has called on governors to provide empty plots of land for the purpose. For in-

stance, in Palu, Central Sulawesi, an industrial estate will be established for rattan processing. So, each of these new industrial estates will have its own characteristics. Under the new presidential decree, according to then Industry Minister Fahmi Idris, every new factory must be built within an industrial estate, except factories belonging to small and mediumscale enterprises or factories situated in areas that have no industrial estates. Below is a list of Indonesian Industrial Estates built between 1970s and 2009:

SUMATERA

Company Name / PT / IE

PURWAKARTA - WEST JAVA Size (Ha)

Besland Pertiwi

Jababeka Tbk

1,800.00

Cilegon

Singa Purwakarta Jaya

Anggrek Purwakarta Industrial Estate

Asri Pelangi Nusa

500.00

Purwakarta

Location

Berkah Segara Utama

200.00

Purwakarta

1,050.00

Serang

Cahaya Purwakarta Ekajaya

130.00

Purwakarta

SERANG - BANTEN No.

Company Name / PT / IE

Size (Ha)

Serang

Liketama Sejati

232.00

Purwakarta

Berlian Sarana Utama

100.00

Serang

Nurizki Salayu Indah

150.00

Purwakarta

Buana Eka Ganda

250.00

Serang

Pancatama Griyatama

150.00

Purwakarta

Bumi Cahaya Mandiri

100.00

Serang

Sentraloka Adyabuana

200.00

Purwakarta

Cahaya Bajatama Indonesia

250.00

Serang

Cikande Industrial Estate

200.00

Serang

OTHER PLACES IN WEST JAVA

Cipta Perintis Mandiri

200.00

Serang

No.

Eterindo Wahanatama

25.00

Serang

Bogorindo Cemerlang

100.00

Bogor

Intibangun Adi Pratama

250.00

Serang

Cibinong Center Industrial Estate

140.00

Bogor

Intisarana Pertiwi Putra

200.00

Serang

Dwipapuri Abadi

200.00

Sumedang

Kartawi Adyaland

150.00

Serang

Hexamas Atanaka Persada

Serang

Mukti Rejo Utama

Serang

Tamoratama Prakarsa

103.00

Medan

Margasari Kalimas

200.00

Padang Industrial Park

200.00

Padang Pariaman

Modern Persada Kreasi

Fultek International Development

Deli Serdang

Nikomas Gemilang

Deli Serdang

13 14

120.00

Aceh Utara

Gunung Harapan Sentosa

514.00

Medan

Kawasan Industri Belawan

150.00

Medan

Meil Nusantara Development

14.00

Medan

Natsteel Wilmar Gemilang

250.00

Medan

Pondok Tirta Satria

100.00

Medan

Lampung Sentosa Industrial Estate

301.00

Bandar Lampung

Timah

Bangka

1,442.00

RIAU AND BINTAN ISLANDS No. 1 2 3 4 5

Company Name / PT / IE Batamindo Investment Corporation Kabil Indonusa Estate Nusatama Properta Panbil Bintang Propertindo Hijrah Industrial Estate

Size (Ha) 500.00 73.00 103.67 70.00 6.40

Location

Tritunas Bangun Perkasa

36.00

Batam

10 11 12

Bintan Inti Industrial Estate Kawasan Industri Dumai Batam (Persero) Spinindo Mitradaya Batam

4,000.00 400.00 38.00 100.00

20.00

Bogor

400.00

Serang

Cileungsi Perdana Industrial Estate

300.00

Bogor

165.00

Serang

Menara Permai

60.00

Bogor

Pancapuri Indoperkasa

500.00

Serang

Pegambiran Industrial Estate

62.00

Cirebon

Pancatama Gotong Royong

100.00

Serang

Plumbon Bangun Sejahtera

85.00

Cirebon

Cahaya Timur Indah

100.00

Subang

Mega Pasanggrahan Indah

25.00

Subang

Company Name / PT / IE

Tangerang

Kawasan Berikat Nusantara (Persero)

Tangerang

Cakung Remaja Development

Cidurian Sarananiaga Permai

105.00

Tangerang

Cipta Cakra Murdaya

300.00

Tangerang

Grahapermai Raharja

76.00

Tangerang

150.00

Tangerang

Pentabinangun Sejahtera Purati Kencana Alam Putera Daya Perkasa Sinar Serpong Subur Surya Karya Luhur & Elang Mas Tejopratama Mandiri Gemilang

Company Name / PT / IE Bekasi Fajar Industrial Estate East Jakarta Industrial Park Gobel Dharma Nusantara

Hyundai Inti Development

Trisatu Utama Raya

20.00

Batam

Jababeka Tbk.

Suar Batam International Development

117.00

Batam

Patria Manunggal Jaya

Batam

Puradelta Lestari

Batam

200.00

Batam

Seafront Industrial City

150.00

Barelang Wood Industry

100.00 50.00

Lippo Cikarang Tbk. Megalopolis Manunggal Ind. Dev.

Putri Selaka Kencana

Wiraraja Investindo Nusantara

Kawasan Industri Terpadu Indonesia China

Batam

Jakarta Utara

Tangerang

130.00

Batam

Jakarta Utara

43.00

300.00

Benua Permai Lestari

Batam

594.00

Adhibalaraja

15.00

15.26

Jakarta Timur

Batam

438.75

Tangerang

Batam

Jakarta Industrial Estate Pulogadung (Persero)

Tangerang

102.00

150.00 70.00 73.64 150.00 250.00 170.00

Tangerang Tangerang Tangerang Tangerang Tangerang Tangerang

Size (Ha) 200.00 320.00 54.00

Location Bekasi Bekasi Bekasi

200.00

Bekasi

1,570.00

Bekasi

200.00 1,000.00

Bekasi Bekasi

1,000.00

Bekasi

11.30

Location

250.00

Mitra Indotextil

Size (Ha)

Bhumyamca Sekawan

Sanggraha Daksamitra

No.

Dumai

Company Name / PT / IE

Mitratangerang Bhumimas

BEKASI - WEST JAVA

Bintan

No.

Batam

JAKARTA

Thomas Technology Park

Kara Primanusa

Location

400.00

Size (Ha)

Bumi Citra Permai

Batam Batam

Serang

Aspex Paper

500.00

Batam

30.00

23.00

Bandung

Langgeng Sahabat

Tangerang

Batam

Teluk Pantaian Indah

Union Batam Abadi

30.00

25.00

200.00

Batam

Bandung

Pasific Nirmala Land

Krakatau Bandar Samudra

Bumi Serpong Damai

Batam

Location

Bandung

Size (Ha)

300.00

TANGERANG - BANTEN No.

Company Name / PT / IE

30.00

Aceh Besar

Kawasan Industri Asia Pasai

Purwakarta

662.00

Purwakarta

Mustika Lodan

Medan

350.00

50.00 150.00

650.00

Kawasan Industri Asia Blang

Purwakarta

ModernCikande Industrial Estate

Lamhotma Industrial Estate

1,300.00

150.00

Location

Medan

Sarana Tamora Permai

Size (Ha)

Cilegon

525.00

Company Name / PT / IE

550.00

Kawasan Industri Medan (Persero)

300.00

No.

Krakatau Industrial Estate Cilegon

Harmoni Nusantara Development

Location

Company Name / PT / IE

70.00

Location

No.

Size (Ha)

CILEGON - BANTEN

Jakarta Selatan

CENTRAL JAVA No.

Company Name / PT / IE

Size (Ha)

Location

Kawasan Industri Wijayakusuma (Persero)

250.00

Semarang

Indo Perkasa Usahatama

600.00

Semarang

Karyadeka Alam Lestari

600.00

Semarang

Lamicitra Nusantara Tbk.

100.00

Semarang

Merdeka Wirastama

300.00

Semarang

Tanah Makmur

100.00

Semarang

Kawasan Industri Cilacap

193.00

Cilacap

Kawasan Industri Cilacap

197.00

Cilacap

Tanahmas Makmur

300.00

Demak

Merdeka Suryasakti

300.00

Demak

Semarang Industrial Estate Sayung

300.00

Demak

Sinarbatumas Abadi Industrial Estate

50.00

Demak

Guna Mekar Industri

Sinar Centra Cipta

15 16

300.00

Semarang

95.00

Semarang

Tanahmas Jaya

100.00

Semarang

Tjokrohandoko Tugu Estate

100.00

Semarang

Tugu Indah Abadi

300.00

Semarang

Tugu Kawasan Industri

100.00

Semarang

220,00

Bekasi

1,000.00

Bekasi

EAST JAVA

Tegar Primajaya

430.00

Bekasi

No.

Alindatamasakti Brother Corp.

400.00

Bekasi

Kawasan Industri Gresik

135.00

Gresik

Company Name / PT / IE

Size (Ha)

Location

Amansejati Propertindo

18.00

Batam

Citra Buana Prakarsa

38.00

Batam

Amcol Propertindo Inv.

230.00

Bekasi

Dharmala - RSEA Industrial Estate

400.00

Mojokerto

Malindo Industrial Park

n/a

Batam

Bekasi Matra Real Estate

500.00

Bekasi

Surabaya Industrial Estate Rungkut (Persero)

835.00

Surabaya & Pasuruan

Walakaka Industrial Estate

n/a

Batam

Cikarang Hijau Indah

230.00

Bekasi

Bangun Petamas

100.00

Gresik

Indah Industrial Park

n/a

Batam

Gerbang Teknologi Cikarang

300.00

Bekasi

Injoko

200.00

Gresik

Latrade Batam Indonesia

35.00

Batam

Great Jakarta Inti Development

12.50

Bekasi

Kasih Jatim

200.00

Gresik

Repindo Jagat Raya

n/a

Batam

Indocargomas Persada

230.00

Bekasi

Kasih Jatimanda

200.00

Gresik

Suar Batam International Estate

59.00

Batam

Jatiwangi Utama

220.00

Bekasi

Maspion Industrial Estate

425.20

Gresik

Bumi Abadi Tegar Sakti

32.00

Batam

Kawasan Darma Industri

18.00

Bekasi

Pertama Sarana Unggulan

12.00

Batam

Kreasi Intan

300.00

Bekasi

Keasindo Real Estate Development

300.00

Bengkalis

Sarana Panca Utama

250.00

Bekasi

Nurita Baganyasa

1,040.00

Bengkalis

YKK Indonesia Ziper Co. Ltd.

-1.00

Bekasi

Widya Adimitra

100.00

Bengkalis

Pantai Raja Makmur

250.00

Kampar

Kawasan Industri Kampar

5,000.00

Kampar

Multi Dwi Makmur

2,000.00

Riau

37 38

Surya Bangun Pertiwi Karimun Investama Corporation

3,600.00 500.00

Company Name / PT / IE

No. 1 2

Riau

60.00

Gresik

Spinindo Giri Surabaya

300.00

Gresik

Surya Bina Industria

300.00

Gresik

Anugrah Arta Restumas

200.00

Lamongan

Vanindo Arta Megah

200.00

Lamongan

Mojokerto Industrial Park

300.00

Company Name / PT / IE

Mojokerto

Daya Kencanasia

Bumi Cokro Santoso

200.00

Pasuruan

Karawang

Intimekanika Usaha Mukti

500.00

Indotaisei Indah Development

Pasuruan

140.00

Karawang

Siantar Tiara

100.00

Pasuruan

Size (Ha) 210.00 700.00

Location Karawang

Kawasan Industri Kujang Cikampek

Maligi Permata Industrial Estate

1,100.00

Karawang

Dharmala Land

200.00

Sidoarjo

Mitra Karawangjaya

430.00

Karawang

Indo Abadi Langgeng Lestari

100.00

Sidoarjo

Suryacipta Swadaya

1,400.00

Karawang

Prospek Karyatama

23.00

Sidoarjo

Bitung

318.00

Sidoarjo

20.00

Sidoarjo

Riau

Size (Ha) 22.00

Samator Indo Properti

KARAWANG - WEST JAVA

AMBON, PAPUA, KALIMANTAN, SULAWESI No.

9 10

Location

Bitung Internusa Industrial Estate

Aneka Inti Sejahtera

500.00

Karawang

Sidoarjo Waru Tambak Sawah

Kaltim Industrial Estate

230.00

Bontang

Bintang Puspita Dwikarya

400.00

Karawang

Sukoharjo Permai

Kawasan Industri Makassar (Persero)

703.00

Makassar

Canggih Bersaudara Muliajaya

300.00

Karawang

Altap Prima Industrial Estate

285.57

Surabaya

Banjar Gawi Makmur

100.00

Banjar

Hab & Son's

358.00

Karawang

Alumindo Industrial Estate

253.00

Surabaya

Bumi Kecubung Makmur

95.00

Kotawaringin Barat

Karawang Jabar Industrial Estate

506.00

Karawang

Green Osowilangon Corp.

170.00

Surabaya

Dinnelator Bitung Industrial Estate

93.00

Bitung

Karawang Tatabina Industrial Estate

314.00

Karawang

Indoprima Industrindo

30.00

Surabaya

Jaya Maluku Agung

120.00

Ambon

Mandalapratama Permai

300.00

Karawang

Kariangau Industrial Estate

500.00

Balikpapan

Persadanusa Makmurindo

300.00

Karawang

Pakuwon Darma

157.50

Surabaya

Karya Bumi Kahayan Makmur

400.00

Palangkaraya

Pertiwi Lestari

7,100.00

Karawang

Pakuwon Jati

163.00

Surabaya

Sarana Wisma Permai

160.00

Surabaya

Sumber Jaya Adhi Mulya

80.00

Surabaya

Surabaya Makmur Sejahtera

200.00

Surabaya

Suri Mulia Permai

300.00

Surabaya

Kawasan Industri Kauditan

150.00

Minahasa

Pradidhana Anugerah

250.00

Karawang

Lembah Palu Nagaya

100.00

Donggala

Rasindo Perkasa

100.00

Karawang

Leon Pasific Utama

200.00

Rasmalan Land Jaya

90.00

Tanahapuas Makmur

117.00

Sorong

Sejatibuana Jayadharma

200.00

Karawang

Banjar

Sitiswadaya Permai

500.00

Karawang

Pontianak

Sumber Air Mas Pratama

500.00

Karawang

Source: Ministry of Industry

The President Post

C4 March 17, 2011

www.thepresidentpost.com

Tourism New Media to Promote RI Tourism Launched Indonesia again is ready to promote its tourism abroad through a magazine that reports on the magnificent places worth visiting across Indonesia. “I have invited several foreign ambassadors serving in Indonesia in order to improve the partnership in changing information and network of tourism between RI and foreign countries,” said Ahmad Asyar, the director of Travelxpose Magazine, in the Dinner with Ambassador event at Alila Hotel, here last month. He said through the magazine, the ambassadors in Indonesia could make use of the opportunity to share information and promote their art, cultural and tourism assets with the country. Meanwhile, Paivi Alatalo, the Deputy Head of Mission at the Finnish Embassy, said that the concept of sharing information on cultural aspects was a good idea as it would be useful for Indonesia to promote its tourism abroad. “I think it`s a great concept. I wish it good luck and a lot of success for the magazine,” said she. Paivi, who likes to visit Bali, said that Indonesia had many fascinating places to visit. In order to promote Indonesian tourism in Finland, she added, RI needed to advertise more on eco-tourism. “Eco-tourism may be the most interesting kind of tourism for my people because we are close to nature. In my opinion, you need to promote more about the coun-

Mamasa district has a number of tourist attractions such as Mamasa Valley, which is also referred to as West Tana Toraja, and is known for its traditional ceremonies and local handicrafts.

he tourism potential in Mamasa district, West Sulawesi province, will be optimized to support regional revenue, Mamasa district head Obed Negodepparinding has said. “Mamuju as a tourist destination in West Sulawesi has many attractions that must be supported by all parties here,” Obed Negodepparinding said here last month.

Through the magazine, the ambassadors in Indonesia could make use of the opportunity to share information and promote their art, cultural and tourism assets with the country.

try like the magnificent temples in Java and natural tourism,” she said. She also said that Indonesia did not need to advertise Bali in large scale because `the goddess island` had been known well in the world. “Bali does not need much promotion because everyone knows Bali well,” she said. Moreover, she added, the political crisis in Indonesia did not prevent people from Finland to go to Indonesia. “Politics in Indonesia is not something we are afraid of, but natural disasters like mount eruption is the reason,” she said.

In the meantime, Peruvian Ambassador Juan Alvarez Vita said that he enjoyed Indonesian tourism as the country had rich cultures and interesting places. “I really enjoy Indonesian tourism and like this country very much. It`s a wonderful country which has many lands and cultures,” he told ANTARA. He also added that he was glad to have a tourism partnership with RI in visa exemption for Indonesian people since ten years ago. “I am very happy because we have a special agreement with Indonesia. So, Indonesians can enter Peru without visa,” he said.

RI to Promote Tourism in Asean Countries The government is committed to expanding Indonesia`s tourism market in Asean countries such as Thailand, Vietnam, and the Philippines. “This year we will start to expand our tourism market to Thailand, Vietnam, and the Philippines,” deputy director for Asean region at the culture and tourism ministry Chrismiastutie said here last month. According to her, the three Asean countries were are considered potential for the Indonesian tourism market in Asean after Singapore and Malaysia. Especially for the Philippines, she expressed optimism that the number of tourists from the country to visit Indo-

nesia would increase to 210,000 this year. “We have made tourism promotion several time last year in the Philippines, so we are optimistic that around 210,000 tourists from the country will visit Indonesia this year,” she said. But she added that the number of tourists from Thailand and Vietnam would not probably be big enough. “It is because the people of Thailand are not eager to travel very much,” Chrismiastutie said. However, she remains optimistic to be able to net tourists from the two countries to visit Indonesia. Therefore, she would apply four marketing strategies, namely to participate in the exchange of tourism, to be active in sales mis-

sion, to support Indonesia festival, and to optimize Visit Indonesia Tourism Office. She said that the Culture and Tourism Ministry this year has an agenda of 75 promotion events abroad with 17 activities in Asean countries, 18 in Asia, 13 in Europe, and 12 in the Middle East. “The Asean tourism market is very potential because there has been an agreement among Asean tourism ministers about Asean for Asean, and if it is implemented, it will be very good for our tourism sector,” she said. According to her, the gateways for Asean tourists in Indonesia are Bali, Jakarta, Batam, and Bandung.

Three Yachts to Call at Benoa General Manager of PT Pelabuhan Indonesia (Pelindo) III in Benoa Iwan Sabatini said by the end of this month and early next month, at least three tourist cruise ships will be calling at Benoa port in Bali. They are Rabf Sodi, Flaygen of Sea and Silver Sedo, he said here last week. “The visits of foreign tourists are very positive for Bali`s economy, as the island para-

dise is significantly relying on the tourism sector,” head of the former Pelindo spokesman in Surabaya said. This year, he added, some 28 yachts with a length ranging from 200 to 300 meters will be calling at Benoa. “Last year 27 yachts anchored at the port, each of them with 1,000 to 2,000 foreign tourists,” he said. He said that the improved

world economy, some 28 yachts may call at Benoa. Iwan Sabatini said in the long run Pelindo will build a cruise center for yachts, as they are normally longer than ordinary ships and more special rooms for immigration for instance. Not only to raise its income, PT Pelindo will also constantly increase infrastructure facilities at the port.

China Plans to Develop Tourism in Central Kalimantan Palangka Raya legislative assembly (DPRD) members said China planned to develop the tourism sector in Central Kalimantan. “With C. Kalimantan Governor Agustin Teras Narang, we have just visited China to attract foreign investors to develop the area,” Palangka Raya DPRD chairman Sigit

Mamasa Tourism Goes International

K Yunianto said here last month. He said China will soon send a team to study Palangka Raya. He said Palangka Raya has a very big potential to develop tourism objects mostly consisting of natural resources like the Kahayan river and forests. Sigit further said China also has a plan to build a car and railway train manufacturing enter-

prise in Central Kalimantan, because the province has a great deal of the basic material. With regard to the planned investment, the Central Kalimantan administration and the Chinese government will make a mutually beneficial cooperation contract.

With Mamasa district chosen as a regional tourism development in West Sulawesi this year, Obed said intensive promotion would be made both at national and international levels. “We are going to intensively promote the tourism potentials in the district in a bid to attract as many domestic and foreign tourists as possible,” Obed said. He hoped the government would provide financial assistance for the development of supporting infrastructure facilities in Mamuju. “With the financial assistance from central and pro-

www.gsja.org

vincial governments we can build tourism supporting infrastructures such as road access to the tourists areas,” he added. Mamasa district has a number of tourist attractions such as Mamasa Valley, which is also referred to as West Tana Toraja, and is known for its traditional ceremonies and local handicrafts. He said the Mamasa Valley could be best explored on foot by visitors to enjoy the scenery and views at a slow pace. The surrounding countryside is nothing short of idyllic and if visitors plan to travel any distance, it makes sense to hire a motorcycle or car to enjoy the view of Mamasa Valley. Also, the attractions of the Gunung Mambulilin mountain peak, the hot springs at Kole, village life in Loko, the cascading waterfall of Mambulilin Sarambu, and the jungle walks around Taupe. “No wonder tourism in Mamasa has great potential to increase the regional revenue to raise the local people`s welfare,” Obed said.

Traditional clothing of Mamasa district, West Sulawesi.

The President Post

www.thepresidentpost.com

March 17, 2011 C5

Travel North Sulawesi

Land of Vast Natural Resources, Cultural Wealth God must have spent some time in North Sulawesi. That thought crossed my mind when I visited the province’s capital city of Manado and other beautiful areas in North Sulawesi, a land of magnificent coral reefs, white sandy beaches, mountains and active volcanoes, which remind people and the world in general of the Earth’s beauty. By Filly Sumayku

he North Sulawesi province occupies the northeastern tip of the bizarrely-shaped island. Sitting firmly within the Pacific Ring of Fire, almost all volcanoes in Sulawesi are concentrated on this part of the island. Its tourism sector had grown rapidly in the past two decades and had helped bolster the region’s economy. Blessed with rich natural resources and beautiful panoramic sceneries, North Sulawesi is popular for its ecotourism. The Bunaken National Marine Park is one of the most enchanting marine parks in the world. It is located in Bunaken Island, around 45 minutes away by boat from Manado City harbor. The park is located near the center of the Coral Triangle, home to 390 coral species, 3000 species of fish, as well as mollusks, reptiles and marine mammal species. It represents Indonesia’s tropical water ecosystem. It consists of seaweeds, coral reefs, and coastal ecosystem. It is one of the most exciting and rewarding places to dive on the face of the Earth. If you don’t have much time or have only little diving skills but still want to see what the ocean looks like underneath, you can charter a boat from a harbor in Manado that has special glass windows placed at the bottom of the boat. The boat operates daily except on Sunday. When you make the trip, make sure you depart early in the morning and return before the weather turns windy in the afternoon. When the boat reaches the park, the boatman will slow it down and install the glass windows for passengers to enjoy the ocean park view. Unfortunately, the tourism potentials in Bunaken lack basic facilities and infrastructure. It needs strong investment to develop accommodations or larger budgets from the local administration to maintain natural conservation. The fact is you can do many things in North Sulawesi aside from diving. Other interesting ecotourism spots can also be found at Minahasa highland, about 25km away from Manado. There are volcanoes, lakes, mausoleums, and caves that attract both local and foreign tourists. This is an ideal place to stay and to explore the area, or just to retreat for a couple of days. Tomohon is a village that sits between two active volcanoes, Lokon and Mahawu. Tomohon itself literally means “people who pray”. Even the most casual observers will notice that North Sulawesi has a proliferation of churches, many of them seemingly stuck at various stages of construction. Given the precarious situation, it’s no surprise that the people of Tomohon pray more often than others. The air in this town is cool and fresh. The land

has ample flowers, horticultural plants and other crops. The fertile soils of the Minahasa highlands have made them some of the most productive areas for agriculture, and it seems that everywhere you look there are neat rows of cabbages, carrots, spring onions and other vegetable plants that eventually find their way to the Tomohon market, and later onto the dining tables around the region. The highest mountain in North Sulawesi (1995m) is Mount Klabat, a stiff 5-6 hours climb from Airmadidi. Climbing the mountain on a full-moon night can give you a memorable experience because you will find the view more exotic as you wait for the sunrise and enjoy the morning panorama of some parts of Minahasa and see Lake Tondano emerging. On Sundays and during holidays, this mountain will be flocked by students who want to climb and camp on the mountain. Another challenging activity is to hike Mount Soputan (1,825m). The volcano is still active, steamy, and dusty with volcanic sands and lava covering the slopes of the mountain from its summit to its feet. A journey to the top of the mountain means a walk through plantations. The final three hours allow you to be exposed to a forest of casuarinas. Climbers find them so beautiful, they often make it a camping site for an overnight stay before they head to the summit at 4 a.m. Some parts of the mountain are covered with “Edelweiss”, also known as “the flower of eternity”. At the top, you will find several lakes. Lake Tondano is the biggest and the most popular as there are restaurants built on stilts above the water for climbers to get a grab of seafood during lunch time. Then there’s the remarkable Lake Linow fed by a steaming volcanic spring, famous for its changing colors during a hot day as it can turn from deep blue to turquoise, green and sulfur yellow. Minahasa boasts one of the

highest proportion of Christian adherents in the country (a staggering 97%!) as well as having the highest density of church buildings in Indonesia, with approximately one church for every 100m road. Being the provincial capital, Manado is home to some of the largest churches in the region. Most of the great churches are concentrated along the iconic Sam Ratulangi Street. Besides the Roman Catholic Church and the GMIM, various Christian denominations are also represented, including the Seventh Day Adventist, the Pentecostals, the Salvation Army, the Assemblies of God, and so on. Most traditional markets are closed on Sundays because the people are mostly at church. Each church is designed uniquely. I wouldn’t be surprised if one day these churches with their unique constructions become tourism objects. North Sulawesi could become the land of 1000 churches just like Bali being the island of 1000 temples. Moreover, there is a monument called Christ Blessing Statue the second tallest Christ statue in Asia after the one in the Vietnamese city of Vũng Tàu and the fourth tallest Christ statue in the world. It is a new icon of Manado built 50 meters above surface in Citraland, a posh area located approximately 7km to the south of downtown Manado. Affectionately called ‘The City of Blessing’, it’s renowned for its blessing giver, the colossal statue of Christ that guards the township below. Though Christianity is the major religion, other beliefs also have strong roots here. The oldest Chinese Buddhist temple in East Indonesia, Ban Hin Kiong, is located in the heart of Manado city. Every February, Toa Peh Kong (a traditional Chinese parade) is an event that is awaited by local community. People can see Barongsai or lion dance performances, IncePia (a man who hits his back with a sharp sword without being injured), Pikulan (a unique and motley procession of little girls sitting on poles decorated with flowers), and Kuda Locia (a procession of young men

on horseback dressed in colored costumes). Each belief continues to strengthen their position and live side by side in harmony. Manado is considered a safe place as it carries a slogan “we are all family” or “torang samua basudara”. The province’s motto of ‘Sitou Timou Tumou Tou’ which literally means “man lives to human-

ize others”, describes the local people’s wish to grow, to develop together and to support each other. The people’s hospitality and fun-loving society will offer you a pleasant experience. There is also Bukit Kasih, or the Hill of Love. It was built in 2002 as a spiritual center where religious followers from various

faiths gather, meditate and worship side by side in this lush and misty tropical hill. It is located in the village of Kanonang at Kawangkoan, 55 kilometers from Manado, North Sulawesi. This place has five houses of worship: Catholic church, Christian church, a temple, a mosque and a Hindu temple built on the second peak. In addition, this

place is also believed to be the place where the original ancestors of the Minahasa, Toar and Lumimuut tribes lived. Their faces are carved on the hillside beneath the second peak. Maybe some provinces in Indonesia can learn from North Sulawesi on how to live peacefully in diversity.

The President Post

C6 March 17, 2011

www.thepresidentpost.com

Living

e v i t a Does being cre help you climb to the top? (CNN) – Your manager and colleagues regard you as a creative genius, leading to thoughts of a promotion in your head. But if you’re harboring ambitions of harnessing your skills to land a leadership role, you could be in for a tough climb, according to new research.

eople who express creative ideas are less likely to be identified as having leadership potential, according to a forthcoming study in the Journal of Experimental Social Psychology. “In theory creativity is a positive thing and everyone wants it,” said Jennifer Mueller, assistant professor of management at the Wharton School of the University of Pennsylvania and lead author of the study. But in practice, “creativity causes a lot of problems in the sense that you don’t know if it’s going to work, if it will be accepted, or viewed as weird or crazy,” she said. Researchers asked employees at a multinational company

for instance, create goals, diminish uncertainty and maintain the status quo, Mueller said. She says she witnesses this sort of attitude all the time when she visits organizations.

hubpages.com

in India to rate their colleagues on the extent to which they produced creative ideas – ideas that weren’t just useful, but also novel – as well as the extent of their leadership potential. They also surveyed college students in the United States. Students were randomly assigned to pitch either a “creative” idea or just a “useful” one. Classmates then evaluated their suitability for a leadership position on the basis of their statements. The surveys from India and the United States found the same thing – that expressing creativity was negatively correlated with perceptions of leadership prom-

Creative leadership allows leaders to move organizations in profitable new directions, but when creative ideas or solutions are put forth, questions about a candidate’s suitability for leadership are activated, the study authors say.

Bilingualism Good for the Brain Does being bilingual give young children a mental edge, or does it delay their learning? It depends on who you ask. Bilingual education is regarded by some in education policy circles as little more than a halfbaked technique of teaching students whose native language is not English. Though it takes many forms, bilingual education programs usually involve teaching students in both their native languages and in English. How much each language is used, and in which academic contexts, varies by program. But neuroscience researchers are increasingly coming to a consensus that bilingualism has many positive consequences for the brain. Several such researchers traveled to this month’s annual meeting of the American Assn. for the Advancement of Science in Washington, D.C., to present their findings. Among them: • Bilingual children are more effective at multi-tasking. • Adults who speak more than one language do a better job prioritizing information in potentially confusing situations. • Being bilingual helps ward off early symptoms of Alzheimer’s disease in the elderly. These benefits come from having a brain that’s constantly juggling two — or even more — languages, said Ellen Bialystok, a psychology professor at York University in Toronto, who spoke at the AAAS annual meeting. For instance, a person who speaks both Hindi and Tamil can’t turn Tamil off even if he’s speaking to only Hindi users, because the brain is constantly deciding which language is most appropriate for a given situation. “If you walk into a room, there’s a million things that could attract your attention,” Bialystok said. “How is it we manage to focus at all? How does our mind pay attention to what we need to

www.psychcentral.com

pay attention to without getting distracted?” To test one’s ability to identify pertinent nuggets while being bombarded with extraneous information, scientists use something called the Stroop test. Subjects are presented with a word for a particular color and asked to identify the color of ink it’s printed in. So if the word is “blue” and it’s printed in blue, no problem. If, on the other hand, the word “blue” is printed in red, they have to sort out which piece of information — the color of the ink, or the color being spelled out — is the one they need. In monolingual speakers, this kind of mental curveball will add 240 milliseconds to their reaction time — a significant delay, in brain reaction terms. Bilingual people, on the other hand, take just 160 extra milliseconds to sort this out. Bialystok theorizes that it’s because they’re used to prioritizing information in potentially confusing situations all day. When bilinguals prepare to speak, their brains seem to inhibit one language while using the other, said Pennsylvania State University psychology professor Judith Kroll, who also spoke at the conference. This effect, she added, is much more noticeable when the speaker chooses their weaker language instead of their dominant one. Learning to juggle two languages in the brain is a skill that probably deserves credit for bilinguals’ cognitive advantages — although, researchers emphasize, this doesn’t mean they learn any better than people who speak only one language. But it does keep the brain more nimble, al-

lowing bilingual people to multitask better, pick out key information faster and more effectively ignore surrounding distractions. Yet public schools are moving away from bilingual education, and have been for some time. In part, this shift has been fueled by political beliefs, as the children who speak multiple languages typically come from immigrant families. “Bilingualism has always been a political hot-button issue just one step removed from immigration,” said Kenji Hakuta, a psycholinguist at Stanford University’s School of Education. With schools focused on getting children to speak English as quickly as possible, parents who want their children to reap the benefits of being bilingual should be sure to continue speaking their native language in the one setting they can control: the home. “You’re basically in a society in which English is the language of power,” Hakuta said. If parents switch back and forth between English and another language, he added, they’re “likely to raise a monolingual English speaker.” (latimes.com)

ise. Creative leadership allows leaders to move organizations in profitable new directions, but when creative ideas or solutions are put forth, questions about a candidate’s suitability for leadership are activated, the study authors say. There’s huge social pressure to endorse creative leadership. Chief executives surveyed by IBM’s Institute for Business Value last year ranked creativity as the most important leadership skill for successful organizations in the future. But thinking outside the box is at odds with the stereotypical view of what leaders should do –

Jorg Reckhenrich, adjunct professor of creativity and innovation at the Lorange Institute of Business in Switzerland, who was not involved in the study, said managers can take measures to overcome this bias. “If a leader wants to foster creativity within an organization he or she should definitely have a better understanding what his or her creative approach is,” he said. Once managers understand these creative principals, they must then learn how to “orchestrate” their company’s creative potential, Reckhenrich said. Mueller, who is conducting further research into the negative associations of creativity, thinks everyone needs to start talking about what makes a good leader so that we can debunk the stereotype, as well as familiarizing ourselves with the true traits of creative people. “Corporations should be really careful about their performance appraisals system and how they identify leadership. If they really want to have creative leadership, it’s going to take more time and effort to nurture,” she said.

5 Tips on Mixing Money and Love Many women struggle with the same root problem: how to mesh love and money. That’s why it pays to have a clear strategy.

Every woman needs her own savings in addition to a shared account. If you’re married and don’t earn income, you can still build your own savings. After paying the bills and putting away for retirement, I think you should be entitled to an equal share of any household income left over at the end of each month. Yes, it’s household income, not your husband’s. That’s an important distinction many couples fail to honor. Just because one of you earns the paycheck doesn’t mean that person should lord over how the money is handled. Use your portion to fund a high-yield savings account.

Every woman also needs one credit card in her name only. If you become divorced or widowed, an individual credit history will enable you to get a loan and open utility accounts without leaving a deposit, and may even help you land a job (some employers check applicants’ credit during the hiring process).

Debts you had prior to marriage are yours alone —unless you actively merge them. When you wed, don’t automatically rush to combine everything. You can help each other out by chipping away at your loans without becoming officially responsible for each other’s.

Be pragmatic about the assets you bring into a marriage. Think long and hard, for example, about adding your husband to the title of your great-aunt’s lake house that you inherited. Should you ever separate, it would be tragic to lose your family treasure. This is doubly important in remarriages, as you may have property you want to leave to your children from an earlier relationship. Work with a qualified estate lawyer to make sure you have the right documents set up to protect you.

After you marry, every asset either of you acquires is jointly held. That’s why you both need to be in sync on your long-term financial goals, from paying off the mortgage to putting away for retirement. Ideally, you should talk about all this before you wed. If you don’t, you can end up deeply frustrated and financially spent. Discussing money with the man you hope to spend the rest of your life with doesn’t mean you don’t love him. It means you love him and yourself. (Oprah Magazine)

The President Post

www.thepresidentpost.com

March 17, 2011 C7

Living Changing Workplaces

Heading Out the Door with Grace Take a moment before leaving to thank those at the company who mentored you or were particularly supportive or helpful. Exchange contact information to facilitate keeping in touch.

First, avoid a possible reputation disaster by holding your tongue until your job change is absolutely a sure thing. According to Lizandra Vega, author of “The Image of Success: Make a Great Impression and Land the Job You Want,” this is after your offer has been confirmed with a salary (compensation package) and start date. “You don’t want to take the chance that your boss will unexpectedly find out about your planned change from someone else either within or outside your company. It’s best to have this news come directly from you,” states John C. Robak, executive vice president and chief operating officer at Greeley and Hansen, a leading national niche firm headquartered in Chicago that specializes in innovative engineering solutions. “The appropriate thing to do is to submit a formal notice in writing to your supervisor or manager informing him that you are resigning from your current position.” In most industries, it remains standard to give an employer a two-week notice before leaving. Use this time to make your de-

Ma da dao is Shanghainese slang meaning, “shop, wash, cook.” Because sao (cook) has the same pronunciation as the word for an older woman, when Chinese hear the term “ma da sao,” they usually picture a housewife. The exception is when the term is used to describe men in Shanghai -- guys who don’t just shop, wash and cook, but famously do so without complaint. This is why on any Shanghai-based TV show, men are pictured wearing aprons, mopping floors and picking up the kid from school. While Western wives may spend their lives waiting to taste their husbands’ cooking, the Shanghai man presents his woman with a banquet of delicious homecooked food with ease. Braised meatballs, fried fish or chicken soup … what do you fancy today, hon?

2. The professional ‘bag carrier’

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parture as smooth as possible by: • Offering to help train a replacement. • Getting co-workers up-tospeed on your current projects or accounts. • Wrapping up as many loose ends as possible. • Leaving detailed notes about specifics such as passwords or the location of information. (Bonus: You won’t have to field calls at your new workplace from a former co-worker frantic to find the key to the filing cabinet.) • Cleaning out your work space. Prepare for the exit interview Many employers will tap an employee who is leaving for an exit interview. While it may be tempting to see this meeting as the opportunity to voice all your gripes about the company, experts suggest preparing for the exchange beforehand and handling it tactfully. “You may be tempted to unload, pour your heart out or simply vent about what a witch your boss was. Don’t do this,” cautions Elizabeth Freedman, author of “Work 101: Learning the Ropes of the Workplace without Hanging Yourself” and “The MBA Student’s Job-Seeking Bible.”

“Even if the HR rep seems sympathetic, this is risky for you and your reputation. Bite your lip if you must, but don’t, repeat, don’t turn your exit interview into drama or a work-bashing session.” Adds Robak, “I would certainly encourage an employee to be honest, keeping in mind that the exit interview is an opportunity to provide constructive criticism that could be beneficial to the company. However, it’s important to remain professional throughout the interview and to provide responses that will help the company understand your motivations for leaving. You should also provide feedback about what you feel the company has done well. Remember that this final interview with a boss or human resources professional may become their lasting impression of you.” Heading out in a favorable light should be high on your departure “to do” list. “It is very important to keep a positive position with your old employer. You may need their reference in years ahead, so you want to stay in their good graces,” Vega states. Take a moment before leaving

On the Left Hand, There Are No Easy Answers Over the centuries, left-handers have been accused of criminality and dealings with the devil, and children have been subjected to “re-education.” By Perri Klass, M.D.

Humans are asymmetric animals. Early in our embryonic development, the heart turns to the left. The liver develops on the right. The left and right lungs have distinct structure. There are certain rare syndromes in which the usual asymmetry of organs is reversed — I remember how disconcerting it was the first time I examined a child with dextrocardia, a heart on the right side, and heard the heart sounds in unexpected places. Over the centuries, left-handers have been accused of criminality and dealings with the devil, and children have been subjected to “re-education.” In recent years the stigma has largely vanished; among other things, four of our last seven presidents — Ford, the elder Bush, Clinton, Obama — have been left-handed. (Reagan is sometimes cited as ambidextrous, and in his autobiography, Gerald Ford said he wrote with his right hand while standing.) But the riddle of what underlies handedness remains. Its proportions — roughly 90 percent of people are right-handed and 10 percent lefthanded — stay consistent over time. “This is really still mysterious,” said

Lung Ying-tai once published an essay called, “Oh, Shanghainese men.” The Taiwanese writer, who claimed to have seen it all, praised the Shanghainese husband as “a rare species in this world” and “the most valuable type of man.” What on earth do these relatively tame-looking guys do to seduce Chinese women so completely? Let me, a born-and-raised Shanghainese woman, explain to the lure of the Shangainese man.

1. The versatile ma da sao

ou’ve just received an offer from a new employer and can’t wait to announce your good fortune, pack up your desk and get out the door ASAP. Yet while your excitement is understandable, don’t let it get in the way of making a proper exit – one that will leave a positive impression long after your cubicle is empty.

China Produces ‘Quality Husbands’

Clyde Francks, a geneticist and the lead author of a 2007 study in which Oxford University researchers identified a genetic variant linked to lefthandedness. Handedness clearly runs in families. The 2007 paper by the group at Oxford identified a gene, LRRTM1, that they discovered in the course of studying children with dyslexia, and which turned out to be associated with the development of left-handedness. Dr. Francks, who is now at the Max Planck Institute for Psycholinguistics in the Netherlands, recalls that the discovery made headlines and attracted a great deal of attention, the more so because this gene was also found disproportionately in people with schizophrenia, even though none of these connections are simple or well understood. “We’re not looking for a gene for handedness or a gene for schizophrenia,” he said. “We’re looking for subtle relationships.” The gene affects the ways that neurons communicate with one another, he said, but its mechanisms still need to be studied. Because left-handedness has been seen as a key to the complex anatomy of the brain, researchers continue to look for — and debate — links to

many other conditions, including immune disorders, learning disabilities and dyslexia, reduced life expectancy and schizophrenia. Left-handedness has sometimes been treated as pathological. Cesare Lombroso, the infamous 19th-century physician who identified various facial (and racial) features with criminal traits, also saw left-handedness as evidence of pathology, primitivism, savagery and criminality. And I was brought up with the story that a generation ago, in the bad old days (and in the old country), foolish unenlightened people tried to force left-handed children to convert and use their right hands. My father said that my uncle, his older brother, had had his left hand tied behind his back as a child. Indeed, there seems to be a certain fascination with figuring out the areas (like the presidency) in which lefthanders seem to shine. Numbers are sometimes quoted about how many architects are left-handed, or how many M.I.T. professors. On the other hand (so to speak), at a moment when we can finally hope for an end to winter, maybe we should celebrate the left-handers whose greatness truly lies in the ways they integrate motor control, strength and the highest kinds of skill and intelligence. (New York Times)

to thank those at the company who mentored you or were particularly supportive or helpful. Exchange contact information to facilitate keeping in touch. You never know who you might want to turn to for help or advice down the line. And if you’ve secured a positive place in their memory through your actions before heading out the door, you’ll be able to approach them again with confidence. (CareerBuilder.com)

Pop quiz: Which brand of bag will you most often find a Shanghai man carrying? a. Hello Kitty b. Dunhill The answer is, of course, Hello Kitty, because that’s his wife’s bag. When shopping with her Shanghainese boyfriend or husband (yes, Shanghai men shop, remember “ma” from point number one?) the Shanghai female doesn’t need to carry any bags, including her own petite purse. That’s a chore Shanghai men gladly take care of. Shanghainese men also often carry a packet of tissue with them in case their partner should need it. What’s more, they even remember their wife’s period cycle, to know when to behave with more tenderness.

3. Family pride

Chatting with a married Western man, you may need to wait hours before he mentions his wife. Chatting with a married Shanghainese man, you may need to wait hours before he stops talking about his wife. When a Shanghainese man begins dating, gets engaged or is having a baby, he blasts out the news to every single contact on his cell phone. For Shanghai men, enjoying life with family is far better than going it alone. Proud Shanghainese husbands take their wives to every event they attend, from school reunions to teambuilding exercises at work. In Shanghai, giving these flowers to your wife makes you more of a man -- and an average Shanghainese husband.

4. Tolerance

The relationship between mother and daughterin-law is like an active volcano in the Middle Marriage Kingdom. But the Shanghai husband’s legendary tolerance can single-handedly turn a lava flow into a pile of dead ashes, or a volcano to be enjoyed and admired like Mt. Fuji. “Three-plywood” is a Shanghainese slang term used when a person is stuck between two parties. Being a good “three-plywood,” “four-plywood” or even “five-plywood” man is a serious obligation in Shanghai. The ultimate goal is to make the wife and mother-in-law happy and to unite the whole family.

5. Masculinity in disguise

OK, stop thinking that all Shanghainese husbands are submissive, girlie or wimpy. Believe me, these great guys have the flag of masculinity flying in their hearts. Shanghainese men simply see it as their responsibility to provide their families with a wealthy life. Their outlook is, “I’ll make all the money and deal with all the ‘bei ju,’” a trendy Internet phrase in China meaning “everything tragic.” Shanghai husbands almost always give their wives their entire salaries (receiving an allowance in return), but not before hiding some “si fang qian” (secret money) for personal use. Yet even with their “si fang qian,” Shanghai husbands are likely to buy their wife a gift to make her laugh. That’s called being a man in Shanghai. (CNN)

The President Post

C8 March 17, 2011

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Sleep and Technology

Don’t Mix

Using cell phones, computers, and video games just before bedtime – and in the middle of the night, as teens and young adults say they often do – is robbing many of much-needed shut-eye. By Laura J. Martin

evices meant to make life easier and more entertaining often make us sleepier, according to the latest poll by the National Sleep Foundation. Sleep and technology don’t mix, suggest the results of the 2011 Sleep in America poll. Using cell phones, computers, and video games just before bedtime – and in the middle of the night, as teens and young adults say they often do – is robbing many of much-needed shut-eye. That’s according to Russell Rosenberg, PhD, chair of

the Sleep in America 2011 task force and director of The Atlanta School of Sleep Medicine and Technology. ‘’This year’s poll really does focus on the technology and electronic devices people are using, devices that have become ubiquitous in our society,” he tells WebMD. The survey has been taken annually by the National Sleep Foundation since 1991. This year’s survey included 1,508 responses, about half done by telephone and half online. Respondents’ ages ranged from 13 to 64. Sleepiness. About 22% of the teens got a ‘’sleepy’’ rating when

a standard assessment tool was used, as did 16% of the 19- to 29year-olds. With age, the sleepy rating went down, but didn’t disappear: 11% for people aged 30 to 45; and 9% for baby boomers. Many said they never or rarely get a good night’s sleep on weekdays – ranging from 38% of boomers to 51% of people aged 19 to 29. The average hours slept hovered around 7 hours for adults and a little more for teens. Teens averaged 7 hours, 26 minutes on a typical workday or school day; 19- to 29-year-olds got about 7 hours; 30- to 45-year-olds and boomers averaged a bit under 7 hours.

Do Sugary Drinks Boost Blood Pressure? The more sugary beverages a person drinks, the higher his or her blood pressure is likely to be Drinking a lot of soda and other sugary beverages has been linked to an increased risk of obesity and diabetes, among other health problems. Here’s another reason to cut back: A new study suggests that even one sweetened drink per day may contribute to higher blood pressure. The more sugary beverages a person drinks, the higher his or her blood pressure is likely to be, according to the study, which appears in the American Heart Association journal Hypertension. Each additional soda, lemonade, or fruit drink the study participants consumed on a daily basis was associated with a small but measurable uptick in systolic and diastolic blood pressure of 1.6 and 0.8 points, respectively. (A blood-pressure reading consists of the systolic pressure “over” the diastolic pressure.) A blood-pressure increase of that magnitude is not a major cause for concern, so the findings may need to be taken with a grain of salt -- or not, since excess sodium is still the prime offender when it comes to high blood pressure (hypertension). It’s not uncommon for a person’s blood pressure to fluctuate by 1 or 2 points within a single day, says John Bisognano, M.D., the director of outpatient cardiology and hypertension at the University of Rochester Medical Center in New York, who was not involved in the new research.

However, Bisognano adds, blood-pressure increases that might seem negligible in an individual could add up to substantial public health risks when multiplied across entire populations. In addition to consuming more sugar and calories, the study participants who drank sweetened beverages consumed fewer nutrients and were several pounds heavier, on average, than their counterparts who avoided the drinks. Maureen Storey, Ph.D., the senior VP of science policy at the American Beverage Association, a trade group that represents the manufacturers of soda and other sweetened drinks, said in a statement that the average blood-pressure increases seen in the study are “inconsequential” and within the standard margin of error. Nevertheless, the authors say their findings suggest that people should consider cutting back on sugary drinks -- not just salt -- to improve their heart health. Water and 100% fruit juices are good alternatives to sugary drinks, although even 100% juice contains sugar and “a high calorie count” and should be limited to one serving per day, says Ian Brown, Ph.D., a research associate at Imperial College London and one of the authors of the study. (Health.com)

Sleep and Technology. Using electronic devices before bedtime was common, with 60% on average overall watching TV, 39% using cell phones, 36% laptops or other computers, 21% phone, 8% video games, and 29% music devices. Sleep experts discourage screen time before bed, Rosenberg says. ‘’There are really two reasons for that,” he says. “One has to do with the light exposures that people get with the computer screen [and other screens]. The light suppresses a hormone that is supposed to tell the brain it’s time to sleep. And that hormone is melatonin.” About one-fourth of those polled said they leave their cell phone ringers on at bedtime, and about 10% say they are awakened at least a few times a week in the middle of the night by phone calls, texts, or emails. That was report-

ed more by younger respondents, including 18% of teens and 20% of people aged 19 to 29. Drowsy Driving. Sleepiness took a toll on driving, the pollsters found, with drowsy driving surprisingly common. Drowsy driving is blamed for more than 100,000 crashes annually, according to the National Highway Traffic Safety Administration, including 1,550 deaths. The average person on a weekday reported drinking about three 12-oz caffeinated beverages, with little variation among age groups. ‘’This is a reflection of coping with either sleep deprivation or a sleep disorder,” Rosenberg tells WebMD. Sleep Poll: Second Opinion This year’s survey focuses on technology, and its effect on sleep is particularly important, says Mi-

chael J. Thorpy, MD, professor of clinical neurology at Albert Einstein College of Medicine at Yeshiva University and director of the Sleep-Wake Disorders Center at Montefiore Medical Center in New York. “A lot of the newer technologies we use involve the visual aspect,” he tells WebMD. “Light is a very important factor when it comes to sleep and wake and circadian rhythms.” Staying away from bright screen light before bedtime is recommended, he says. Tips for Better Sleep A better night’s sleep is within your grasp, Rosenberg says. “If you could take the hour before bedtime and turn off the computer, the cell phone, and the TV, and engage in some better wind-down routines, it would be helpful for sleep.” Pick a wind-down routine that

Using electronic devices before bedtime was common, with 60% on average overall watching TV, 39% using cell phones, 36% laptops or other computers, 21% phone, 8% video games, and 29% music devices. relaxes you, he says, such as reading or listening to music you find relaxing. Another quick way to see sleep improvement? ‘’Avoid caffeine at night, even if you don’t think it has an effect on your sleep,” he says. The same goes for alcohol. It’s best to avoid both within three hours of bedtime, he says.

where 10.000 expatriates are working

On the Criminal Brain:

Nature VS Nurture Whetheracriminal’snatureisbiologicallyingrained, and perhaps even inherited, is a highly controversial notion that’s now getting serious scientific attention. We had a flood of questions and comments last week about recent research on the topic, which shows that it may be possible to predict which children are likely to become criminals or psychopaths based on brain anatomy and genetics. Adrian Raine, psychologist at the University of Pennsylvania, is conducting some fascinating experiments to figure out the brain signatures of criminal behavior, and what kinds of interventions might prevent people from ever becoming offenders. I posed some of your questions, and my own, to him, after we all had more time to think critically about the issues. More than a hundred studies have shown that about half of crime is, on some level, under genetic control. That also means that environmental factors such as parenting, abuse, poverty, discrimination and unemployment account for the other half, Raine said. So, the “nurture” part of the picture is just as important as the “nature.” For the past several decades, research into criminology has focused solely on the environment story. “Falling in love, getting engaged, getting married, that can do a great deal to take someone off the biological path,” he said. “The environment can change the brain, and even though you’ve got these risk factors, they’re not destiny,” he said.

An enriching environment can go a long way in helping young children. Raine’s group conducted a study with 3-year-olds in which half of the kids received a two-year program of better nutrition - including two-and-a-half extra portions of fish per week, more physical exercise every day, and educational activities. Then, the study authors followed up with the kids for 20 years. There have been more than 45 randomized, controlled experimental trials on using medications with aggressive children, and generally they seem to work - some better than others, Raine said. Some work better than others: It appears that certain antipsychotics, antidepressants and anticonvulsants can help, but many parents don’t want to put their kids on these kinds of treatments. That’s why Raine’s group is looking at omega-3 fatty acids, found in fish oil, as a means of boosting brain power and combating antisocial behavior and aggression in children. Omega-3 has been shown to reduce serious offending among prisoners in two experiments, one in England and one in the Netherlands. A certain degree of anticipatory fear is actually good. It’s when you lack that that you make awful life decisions, bad decisions, take awful risks and end up in prison,” Raine said. They know right from wrong, Raine said, but they lack the feeling for what is wrong. When confronted with moral dilemmas, most people get worried, and those emotions helps inform the judgment. (CNN)

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