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SBY GETS TOUGH ON CORRUPTION JAKARTA (TPP) — President Susilo Bambang Yudhoyono (SBY) has issued a Presidential Instruction (Inpres) on a Corruption Prevention and Eradication Plan, Vice President Boediono said.

H

e said Inpres No. 9/2011 was issued on May 12 detailing concrete steps to prevent and eradicate corruption that must be taken by all state agencies receiving the Inpres.

“The Inpress contains guidelines on steps for strategic institutions to eradicate corruption within the executive branch of

RI-China Trade in 2011 to Reach $50 b

The value of non-oil/non-gas trade between Indonesia and China is expected to reach $50 billion in 2011, a Chinese official said.

“The actual figure may even exceed $50 billion,” Chinese embassy spokesman Xu Qi Yi said at a press conference on a planned Chinese Electronics and Machinery Exhibition here last week.

He said the amount was above the value of trade between the two countries last year which was at $42.75 billion.

He also said that China is one of Indonesia`s main non-oil/nongas trade partners as indicated by the value of their trade that reached $12.5 billion in the first quarter this year.

Chinese investment in Indonesia`s infrastructure sector is also high as it reached $6.29 billion in 2010 or up by 31.7 percent from the year before.

“Thousands of Chinese companies are looking for opportunities

plastic goods, fruits, vehicles and parts from China.

China to Build $200 m Heavy Equipment Plant

The Sany Group through its subsidiary, Sany Heavy Industry Co Ltd, will invest $200 million to build a heavy equipment plant in the Cikarang Industrial Zone.

to invest in Indonesia,” he said.

He said most of China`s soft loans for infrastructure investment in the ASEAN region had gone to Indonesia.

According to the National Statistics Agency (BPS) Indonesia suffered a deficit of up to $5.6 billion in its non-oil/non-gas trade with China in 2010 which was the highest deficit figure sustained by Indonesia in its foreign trade.

Provisional data from BPS showed the value of Indonesia`s non-oil/non-gas exports to China from January to December 2010 totaled $14.07 billion.

Indonesia`s non-oil/non-gas exports to China consisted mainly of mineral products (coal), fats and vegetable oils, rubber and rubber goods, iron ore and ash, organic chemicals, pulp, wood and wooden products, copper and electrical equipment and machinery.

The value of Indonesia`s nonoil/non-gas imports from China meanwhile was recorded at $19.68 billion in the same period.

Indonesia mainly imports goods such as electrical equipment and machinery, machinery and tools, iron and steel, organic chemical materials, cotton, plastic and

gies and consists of 102 actions.

The six strategies include prevention, enforcement, harmonization of regulations and laws, saving corrupted assets, international cooperation and reporting mechanism.

“In essence it is re-ordering the working system, procedures and performance of offices considered important with regard to eradication of corruption including tax mafia which is the focus of the Inpres Number 9 of 2011,” he said.

Among the offices to implement the Inpress are the police, the attorney general office, the ministry of justice and human rights and the ministry of finance.

“The Inpress is to be implemented and is commitment of chiefs of the offices. It also gives a time line and monitoring system,” he said.

He said the UKP4 was the one assigned to monitor its implementation.

Some points in the Inpres require the National Police chief to make a national police chief regulation and standard operating procedures (SOP) on information openness.

The Inpres also mandates an SOP to regulate relations between investigators and outside parties such as lawyers, investigators` superiors and the public.

The Attorney General Office meanwhile is required to improve its SOP to cover the leaks that would make possible for judicial mafia to operate.

US Preparing $165 m for RI’s Education

www.chinadaily.com.cn

China is one of Indonesia`s main non-oil/non-gas trade partners as indicated by the value of their trade that reached $12.5 billion in the first quarter this year.

government,” he said on the sidelines of a meeting attended by a number of cabinet ministers.

Among those attending the meeting were Finance Minister Agus Martowardojo, Attorney General Basrief Aried, head of the National Development Planning Board, Armida Alisjahbana, director of corruption cases of the National Police Headquarters, Brigadier General Ike Edwin and the chief of the President`s Working Unit for Development Control and Supervision (UKP4), Kuntoro Mangkusubroto.

Boediono said the issuance of the Inpres reflected the government`s commitment to preventing and eradicating corruption.

Steps in corruption eradication and prevention cover six strate-

The Sany Group through its subsidiary, Sany Heavy Industry Co Ltd, will invest $200 million to build a heavy equipment plant in the Cikarang Industrial Zone.

“The plan will be completed in the next three months. They have bought 10 hectares there,” Agus Tjahajana, the Industry Ministry’s international industry cooperation director-general, said recently.

The plant has targeted the production of 1,000 units of heavy equipment per year and is expected to employ more than 1,500 workers.

In this way, Indonesia will become the base for heavy equipment production, mining equipment and construction tools to meet demand in ASEAN, Japan and Australia.

The investment commitment was mentioned in a meeting between Sany Heavy Industry and Industry Minister M.S. Hidayat during the Industry Ministry’s official visit to Zhejiang, China, on April 20-21.

Sany will compete with other heavy equipment industries in Indonesia, such as Caterpillar from the US and Komatsu from Japan.

The United States is preparing $165 million in funds to help improve the quality of education in Indonesia, its diplomat said.

“One of our government`s focuses is improving the quality of education in Indonesia. We are preparing at least $165 million for that purpose,” US Consul General for Indonesia Kristen Bauer said after delivering a general lecture at the Ambon State Institute of Islamic Studies (IAIN) last week.

She said the funds were

part of the US commitment to promoting Indonesia’s education.

The $165 million in funds would among others be used to provide scholarships to Indonesian students wishing to pursue higher education in the US, strengthen partnership among universities in Indonesia, and finance student exchange programs, she said.

According to her, the US was also preparing a number of programs aimed at improving the quality of education, ranging from elementary to senior high schools,

in Indonesia. Under the programs, Indonesian teachers would be sent to the US to teach at a number of schools for several months or the other way around, she said.

Indonesia and the US could exchange information and experience in the educational field through a teacher exchange program, she said.

Bauer was in the Maluku provincial capital of Ambon to offer her government`s programs aimed at improving the quality of education.

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INTERVIEW

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BUSINESS

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Muhammad AS Hikam: Boost Industry-oriented Researches

“RI to be in top ten world’s largest economies”

81 State Firms by 2014: Minister

Low-risk Retirement Tips

The reduction in the number of state firms was intended to increase the performance and the value of the company.

One thing you may not want to take a chance on is the possibility of falling below at least a minimum standard of living. Or to put it another way, you may want to take extra care that you’ll have at least enough income to meet your basic living needs the rest of your life.

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The President Post recently interviewed Hikam on the interlinkage of research between industry and education sectors.

Indonesia`s economy grew by 4.5 percent in 2008, and then 6.1 percent in 2010, while the rest of the world continues to grapple with the repercussions of the global financial crisis.

Menara Batavia 2nd floor K.H. Mas Mansyur Kav 126 Jakarta Pusat 10230 Indonesia Phone : 021 5723767 Fax : 021 5723767

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A2 May 20, 2011

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Opinion EAST ASIA:

Challenging Times for ASEAN $4,985b China

MYANMAR

$1,310b India

$832b ROK

$5,068b Japan

China, India and ASEAN (as a group) are the three largest economies in the region. Within ASEAN, Indonesia is the largest country. But as an individual country, however, (in terms of GDP in 2007) Indonesia ranks 5th among 16 countries in Asia. The ranking is as follows: Japan $4,380 billion, China $3,241 bn, India $1,166 bn, Rep. of Korea $970 bn, Indonesia $433 bn, Thailand $246 bn, Malaysia $187 bn and Singapore $161 bn.

LAOS

THAILAND

VIETNAM

CAMBODIA

PHILIPPINES

$1,499b ASEAN

BRUNEI MALAYSIA

$14,119b US

SINGAPORE INDONESIA

$16,213b EU $1,051b AUS & NZ No doubt East Asia will be facing challenging times.

It concerns a very large region with the greatest share of the worlds’ population coupled with many economic differences.

It is like a mosaic of many economies showing various shapes, sizes and systems.

By Atmono Suryo

W DYNAMIC ASIA

ith its high g r o w t h (the highest in the world) Asia is becoming a stronger and dynamic Asia, which was perhaps not quite anticipated by the majority of the world community. They have for ages been used to a different world, the Western World. East Asia has been on the move particularly during the last few decades, with China and India in the lead followed by the other countries of the region, including South Korea, Indonesia and the other members of ASEAN. What is happening should also be seen from historical perspectives. A historical change is happening in the global economy affecting East Asia. This extraordinary change is described

by Professor Kishore Mahbubeni of Singapore in his book The New Asian Hemisphere. As Kishore states, there is the shift of global power from the West to the East. For some centuries Asians have been bystanders in the surges taking place of Western commerce, thought and power. That era is over. Asia is now returning to the center stage it occupied for 18 centuries before the rise of the West.

Hence Asia will be heading for

challenging times. As Asia is moving to center stage, the world expects that Asia has “the responsibility” to become the driving force of the global economy in close cooperation with the G-20 and the high-income countries. In the G20 Asia is represented by China, Japan, India, South Korea and Indonesia. The world economy is still a risky one, permeated with irregularities, instabilities, imbalances and the growing disparities.

Asia as a driving force would not only include China and India, but also ASEAN and South Korea. During the last few decades East Asia has moved regionally as well as internationally. The world increasingly recognizes that East Asia is showing its remarkable performance as shown during the Asian Financial crisis of 1997/8 and on the wake of the global recession. East Asia is also experiencing a rapid development of its business (production and distribution) networks.

Many years ago Asia also needed a driving force. It was Japan and the “Asian tigers” (South Korea, Taiwan, Singapore and Hong Kong) which function as the driving force. Often called the flying geeze with Japan in the lead, they made Asia to become the Asian Miracle.

Nowadays it is another grouping of East Asian countries which should become the driving force.

It is composed of countries which not long ago were considered as

the poor, underdeveloped countries, devastated by World War II, the Korean and the Vietnam wars and local hostilities.

China, India and ASEAN (as a group) are the three largest economies in the region. Within ASEAN, Indonesia is the largest country. But as an individual country, however, (in terms of GDP in 2007) Indonesia ranks 5th among 16 countries in Asia. The ranking is as follows: Japan $4,380 billion, China $3,241 bn, India $1,166 bn, Rep. of Korea $970 bn, Indonesia $433 bn, Thailand $246 bn, Malaysia $187 bn and Singapore $161 bn.

ECONOMIC PLATFORM POLICIES At the present time it is still difficult to predict in what direction East Asia will be heading, and what its basic economic platform and policies will be. No doubt East Asia will be facing challenging times. It concerns a very large region with the greatest share of the worlds’ population coupled with many economic differences. It is like a mosaic of many economies showing various shapes, sizes and systems.

At this stage Asian leaders recognize the importance to continue to absorb and make use of quite a number of Western best practices. It includes the principles of market economics including the question of free trade, promoting investment, embracing innovative

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science and technology (already done in a spectacular way by China, India and South Korea), introducing the rule of law and to give great importance to human resources development through education and the development of skill.

At the same time there are quite a number of similarities which should form the basis to make the region to become an attractive economic entity for the world economic and business community. East Asia is already becoming a market-friendly and market-attractive region. It is already developing a large number of economic cooperation agreements.

Market economics

An important point to note is that East Asia’ policies are mostly founded on market-economic principles. Indonesian observers should note that even China and Vietnam are accepting and practicing such principles. But there are still a great deal of controversial views on this matter, particularly in countries like Indonesia where the question of “pro-lib” (pro liberalization) is being rejected. The word capitalism is definitely out of the question.

On the contrary, the introduction of free trade has spurred the economies of Asia. East Asia, including ASEAN, has made a large number of FTA’s (free trade agreements). Likewise the free market economics has resulted in the re-

duction of poverty in many parts of Asia.

In one of the earlier reports of the World Bank it is stated that between 1981 and 2001 the number of people living in poverty declined dramatically in East Asia (by over 400 million in China alone). In addition the rapid expansion of trade in China has resulted in the growth of the middle class. In 2000 it was 56 million people. By 2030, there will be 361 million middle class people in China. more than the entire population of the United States.

ECONOMIC INTEGRATION A very important trend to watch is that East Asian leaders recognize the importance of regional integration. Integration must become the common economic platform. It must become an effective mechanism to strengthen the economies in the region to build a dynamic Asian economic community which would bring also great benefits to the world.

Asia’s influence in the world continues to increase. It is, therefore, of strategic importance for Asia to work out and develop the Emerging Asian Regionalism and to make it an effective mechanism to underpin and support Asia”s sustainable growth.

ASEAN’s ROLE

ASEAN, with its vast experience, is well-placed to start to build the emerging architecture of regional cooperation covering East Asia in particular. As stated by the ADB’s

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The writer is former ambassador to the European Union (EU)

Menara Batavia 25th Floor Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Phone: +62 21 572 7337 Fax.: +62 21 572 7338 Email: circulation@thepresidentpost.com

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ASEAN has made the right strategic decision to give high priority to the development of the ASEAN Community by 2015. It will be realized that its implementation covering 10 South East Asian countries will not be an easy one on terms of economics but also in terms of politics.

But it is the best option for ASEAN to go ahead with the implementation of the ASEAN Community based on the three pillars: Political and Security –Economic – and Social Culture. The next task awaiting ASEAN would be to design and implement the “EastAsian Community” as early as possible to enable East Asia with ASEAN in the chair to play a more active role in the global community of nations.

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study in clear tems, “Given its history, scope, and institutional development, ASEAN remains the core of broader regional arrangements” Furthermore, ASEAN is highly respected for its outward orientation toward the rest of Asia and the global economy.

ASEAN is right in the center of Asia. As expected by the world community the time has come for Asia to be in the lead to help to accelerate global economic recovery towards sustainable growth and prosperity. An expanding Asia will bring hard challenges but also new and vast opportunities for ASEAN.

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May 20, 2011 A3

Interview Muhammad AS Hikam is a person of rich background; he is a politician, researcher and academician. He is now Vice Rector IV of President University (PU) who oversees research and public relations, a position which he has been serving since 2009. The position calls for him to help develop the university’s research division.

During President Abdurrahman Wahid’s brief administration, Hikam served as State Minister of Research and Technology from 1999 to 2001. He was also the Head of the Agency for the Assessment and Application of Technology (BPPT) during the same period, member of the House of Representatives (2004-2007), and senior researcher at the Indonesian Institute of Sciences Center of Economic and Development (PEP-LIPI) (19842001).

Hikam was also the chair of National Research Council (DRN), the Eastern Indonesian Development Council (DKTI) and member of the National Coordination of Telematics Team. Currently, Hikam is an active member of the National Atomic Energy Board’s Expert Group for Nuclear Energy (KATN-BATAN).

Hikam graduated from the University of Hawaii in Manoa, Honolulu, with an MA degree in communications (1987), MA degree in political science (1994) and a Ph.D. in political science (1995). He is the author of “Democracy and Civil Society” (1997); “Citizenship Politics: The Foundation of Re-democratization in Indonesia” (1999) and “Islam, Democratization and Civil Society Empowerment” (2000).

The President Post recently interviewed Hikam on the interlinkage of research between industry and education sectors.

Excerpts:

Muhammad AS Hikam

Boost Industry-oriented Researches

By Filly Sumayku

What is the most needed research work to improve Indonesia’s industry?

If we wish to do research to improve the industry’s role and Indonesia’s competitiveness in the global industry scene, we should set our priorities. We need to identify which industries can drive competitiveness and have good prospects both in the medium and long terms.

It is important for a university to provide human resources with qualifications that meet the nation’s industry’s needs. Therefore, a curriculum with high industry relevance (link and match) is needed along with laboratory equipment that can support applied research.

I see growth in various economic areas in which Indonesia had ratified trade agreements. Members of the ASEAN group, for instance, agreed five years ago to make the region an integrated economic zone and a collective single market. We can witness the region experiencing an evolution to become an integrated region, especially in terms of trade with household goods industry becoming a mammoth. AHEEER Agreement (ASEAN Harmonized Electronics Electrical Equipment Regime) was signed five years ago.

This agreement requires various electrical and electronic household products to meet a certain standard, namely IEC standard.

That could be our entry point.

We can conduct researches to develop energy-efficient electrical appliances and electronic products and sell them at cheaper prices so

that we can compete with foreign products.

Another example is we can use them according to our needs, interests, and to help us set Indonesia’s industrialization strategy in line with RPJPN 2005-2025 and RPJMN 2010-2014.

What was your last research work?

The last research activity I was involved in was before I joined President University. I was a research advisor for the “Assessment of Management System Quality on Railway Facilities, Infrastructure and Human Resources in Indonesia”. The research was aimed to assess Indonesia’s readiness in implementing the Indonesian Railways Act, especially on how to improve public service management.

In my perspective, education is a sector where human resources are pooled but Indonesia hasn’t seemed to develop this yet. The number of our researchers, executives (management), and factories is still small compared to those of our neighboring countries such as Malaysia. Ideally, a university should serve as a supplier of human resources for industries that meet the qualifications they require.

It is important for a university to provide human resources with qualifications that meet the nation’s industry’s needs. Therefore, a curriculum with high industry relevance (link and match) is needed along with laboratory equipment that can support applied research.

The study was very comprehensive. It covered facilities, infrastructure and human resources support. It was an interesting subject because train is a public transportation that still has not received the proper attention from the government. Meanwhile, the public is hoping that the government would provide them with cheap, safe, and comfortable public transportation.

A university also has to provide adequate amount of research budget, especially if it wants to turn itself into a research-oriented university. A university doesn’t have to raise the budget on its own, but it can also raise it from cooperation with related industries that will enable the industries to directly apply research output.

However, a university should provide a minimum initial budget or the so-called seed money.

What does the education sector need to do to support industry?

The cooperation will also benefit senior students who are preparing their thesis or final

projects as they will get an opportunity to study industries, identify problems related to industries and bring them to the university to find answers to the problems through researches.

Universities should also open an internship program as President University did, which has proven to bring remarkable results and has received international recognition. However, not many universities in Indonesia have done this, not even the most prestigious ones. If universities do this, it will help bridge the gap between industry and education sectors.

What is your hope for Indonesia’s education sector, especially universities? What kind of research still needs to be improved?

Universities in Indonesia today, especially state-owned, are actually in the “golden age”, as the education sector gets to enjoy a huge state funding which accounts for 20% of state budget allocation. Therefore they should change their visions and missions to make them become more “link & match”, as I mentioned earlier.

Frankly speaking, state-run universities should not have any financially constraints if they want to improve their facilities, infrastructures, especially their human resources quality.

Sending teachers abroad in

huge numbers, like what I experienced in the late 1980s, should be done again. They should not only be required to get education at home but also overseas, so that they will get a sense of competition with other countries. I’m not undermining the quality of domestic graduates, but overseas graduates tend to have better networking and communication capabilities and these qualities will enhance our university status.

As I said earlier, research in the field of efficient use of energy, cheap public transportation, food, and environment will still dominate research activities worldwide. All researches related to goods and services will also be linked to those areas.

Another alternative is to support what is done by President University, an excellent university that has comparable quality with universities abroad, using English as the teaching-learning language and between its academic societies. President University is proof that education offered by the community could be a center of excellence and innovation incubator that is comparable to that offered by foreign universities.

This is proven by the interest shown by foreign universities in the US, China, Australia, Japan, Europe, New Zealand, Malaysia, and Singapore, all of which wish

to develop cooperation with PU. It would be a pity if the government doesn’t support this idea of SD Darmono of Jababeka Tbk just because PU is not a state-run university. There are also many more private universities with huge potentials that can be used to start industry-oriented researches.

What kind of excellent research does President University do?

Excellent research work in PU managed to cultivate ties with the Jababeka Industrial Estate, which houses more than 1,200 international and national industries.

The development of industrial technology related to electronics, mechatronics, strategic management and development of SME clusters support existing industries and grows around Jababeka.

PU is a young compared to big universities and are still at an early stage of becoming research-oriented. However, PU’s capacity and potentials are clearly remarkable.

You may say that to a certain point, PU is more advanced compared to most universities in this country because it’s an integral part of one of the largest industrial estates in Asia. That’s why human resource development and research institute of PU is currently a priority, and of course it is up to us to achieve future goals and make a strategic plan.

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A4 May 20, 2011

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The Economy ECONOMIC UPDATES RI to increase number of airports to 65 by 2030 Transportation Minister Freddy Numberi said Indonesia had set itself the target of having 65 international airports by 2030.

“In order to increase the competitive edge of national transportation, the government is planning to increase the number of international Freddy Numberi airports to 65 in 2030. At present, Indonesia only has 45 airports,” the minister said here on Wednesday.

The minister made the remarks when he became a speaker at a seminar on international business and public management: “Improving Business Competitiveness Through Integrated System,” at the Widyatama University here.

“We also have the target of increasing the number of seaports from 26 in 2010 to 32 in 2030,” Numberi said.

“We will also increase the capacity of road networks which are combined with ferry transportation means consisting of the North, Middle and South Belts. These belts will connect all areas in Indonesia,” the minister added.

Finance Minister wants subsidized gasoline scrapped

Agus Martowardojo

THE ASEAN SUMMIT ASEAN leaders on the 18th ASEAN Summit 2011 at Jakarta Convention Center. The 18th ASEAN Summit 2011 examined actual issues among ASEAN countries including the Cambodia– Thailand conflict, the Establishment of the ASEAN Institute for Peace and Reconciliation, Enhancing Cooperation against Trafficking in Persons in Southeast Asia, and ASEAN communitybuilding and implementation of the ASEAN Charter.

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Finance Minister Agus Martowardojo said he wants subsidized premium gasoline scrapped because it adds to subsidy burden in the state budget.

“So premium gasoline must slowly but surely be scrapped. This means that it will not be continued in the future,” the minister said here on Thursday.

As part of efforts to cut fuel subsidy, Pertamax gasoline would not be subsidized and be sold according to its market economic value, he said. “Don`t subsidize Pertamax because it must reflect its mar-

ket value,” he added.

Subsidized premium gasoline this year had the potential to burden subsidy budget and affect fuel oil consumption quota of 38.6 million kiloliters due to the absence of government policy to limit the use of subsidized fuel, he said.

RI sees deflation of 0.31 pct in April Indonesia saw a deflation rate of 0.31 percent in April due to a drop in the prices of staple foods, the Central Statistics Agency (BPS) said.

“April`s deflation is almost the same as March when it was -0.32 percent,” BPS Rusman Heriawan said here on Monday.

The prices of staple foods fell 0.48 percent from the month before, contributing the biggest to April`s deflation. Meanwhile, an increase in the prices of processed foods, drinks, cigarettes and tobacco contributed an inflation rate of 0.03 percent, he said.

The other commodities such as chicken meat and eggs contributed a deflation of 0.03 percent. “The commodity that had a significant impact on inflation was gold jewelry which rose 0.05 percent,” he said.

Overall, volatile prices saw a deflation rate of 0.49 percent and administered prices recorded an inflation rate of 0.04 percent. Core inflation meanwhile contributed an inflation rate of 0.25 percent.

Rusman said the government`s decision to postpone a plan to limit the use of subsidized fuel oils had created situations conducive to the inflation rate in the first four months of 2011. As a result, the calendar inflation rate in the year to April stood at 0.39 percent, he said.

“So the inflation rate in the January-April 2011 period is still below 1 percent,” he said.

RI govt to build 150,000 low-cost houses The government is planning to build 150 thousand very low-cost and ordinary low-cost houses for the poor all over the country this year, an official said.

The project would mainly target fishermen living in the country`s coastal areas, Secretary of the Public Housing Ministry Iskandar Saleh said here on Tuesday.

The subsidized houses would consist of 50 thousand very low-cost houses and 100 thousand low-cost houses, he said.

As one of the efforts to realize the project, he said the Public Housing Ministry was exploring the possibility of cooperation with the Maritime Affairs and Fisheries Ministry.

“Of course, we will leave the project to private house developers to implement. If they are not ready to do so for various reasons, we will leave it to state house developer Perum Perumnas,” he said.

The very low-cost houses will be sold at Rp 5 million to Rp 10 million each and the low-cost houses at Rp 20 million to Rp 25 million each.

The prices do not include land and infrastructure costs.

A low-cost house usually has a floor space of 36 sq meters.

“RI to be in top ten world’s largest economies” Indonesia`s economy grew by 4.5 percent in 2008, and then 6.1 percent in 2010, while the rest of the world continues to grapple with the repercussions of the global financial crisis.

P

resident Susilo Bambang Yudhoyono has expressed optimism that Indonesia will eventually become one of the world`s ten largest economies.

“Indonesia is now the world`s 17th largest economy. But our aim is to be in the top 10. Even the IMF is predicting that Indonesia`s economy will be larger than Australia`s within less than a decade,” the head of state said in his opening speech at the ASEANEuropean Union (EU) Summit here Thursday.

Indonesia`s economy grew by 4.5 percent in 2008, and then 6.1

percent in 2010, while the rest of the world continues to grapple with the repercussions of the global financial crisis, he said.

“This year, we expect to grow by around 6.3 percent. And there are even predictions that growth could reach more than 7 percent by 2014,” he added.

The country`s export is expected to reach close to $200 billion by this year, or double from $100 billion in 2006, and its reserves stand at over $100 billion, the highest in the nation`s history, said Yudhoyono before around 400 European and Southeast Asian businessmen.

www.presidensby.info/Cahyo

Indonesia`s inflation rate came down in 2011. The inflation for the first four months dropped to 0.39 percent or 6.16 percent year on year, and the nation was keeping a prudent fiscal policy, with deficit below 2 percent, he explained.

He elaborated further that the country`s debt to GDP ratio has shrunk dramatically, from 77 percent in 2001 to 26 percent in 2010.

“These statistical achievements have manifested in our credit rating evermore improving. Agencies such as Moody`s and Fitch`s have improved Indonesia`s Sovereign Rating to only 1-2 level below Investment Grade, and Indonesia`s outlook to stable and positive,” he said.

In 2010, Indonesia`s investment rebounded to an all-time high of Rp 208,5 trillion - or about $22.95 billion.

Presiden Susilo Bambang Yudhoyono was giving his speech during the opening of the 18th ASEAN-European Union (EU) Summit here Thursday.

IMF: Oil Price Turmoil has No Effect on Economy The International Monetary Fund (IMF) said world oil price fluctuations had not until recently showed any adverse impact on the economic condition of Indonesia, including its economic growth target.

“So far the oil price fluctuations do not give a negative impact to economic growth in Indonesia,” IMF Senior Representative in Indonesia, Milan Zavadjil said here on Tuesday.

Milan said the oil price fluctuations that occurred at this time had a negative impact on the economic growth of countries such

as Malaysia and Australia. The volatility of oil prices has caused a decline in Australia`s economic growth of about 0.1 percent and in Malaysia`s economic growth of about 0.2 percent.

The Indonesian government said that the average crude price of Indonesia (Indonesia Crude Price/ICP) from January to March 2011 reached $104.48 per barrel while the assumption set in the state budget in 2011 was only $80 per barrel.

Milan said the oil price fluctuations did not impact negative-

ly Indonesia’s economy, among others, because of capital inflows that entered into Indonesia which strengthened the rupiah.

“The Indonesian economy is in a healthy position and the economic growth in 2011 is expected to be above six percent,” said Milan.

She said the main driver of economic growth today was an investment that began to rise while consumer spending remained strong.

IMF Managing Director Dominique Strauss-Khan, during his

visit to Indonesia in early February 2011 said that Indonesia`s economy was running well despite facing the same challenge with other countries, such as food and energy price volatility.

“Globally, Indonesia`s economy is going well and I expect to grow more than six percent,” said Dominique.

According to Dominique, no significant issues that could hamper the Indonesian economy to grow.

2011 budget deficit of 1.8 percent is still within reasonable levels, which will help the level of invest-

ment and development in Indonesia.

Meanwhile, on the inflation rate, Milan said the steps the Government of Indonesia took in importing rice in early 2011 was appropriate measures to curb inflation.

It was also appropriate for Bank Indonesia to tighten the monetary sector by raising the BI rate from 6.50 percent to 6.75 percent.

But the IMF has estimated that Indonesia`s inflation rate in 2011 will remain high at around 7.1 per cent while in 2012 is estimated at 5.9 percent.

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The President Post

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May 20, 2011 A5

The Economy RI’s Economy Grows 6.5 pct in Q1 The agricultural, husbandry, forestry and fishery sectors in the first quarter of 2011 grew 18.1 percent from the fourth quarter of 2010.

T

he Indonesian economy grew 6.5 percent in the first quarter of 2011 on rising investment, exports and domestic consumption, the Central Statistics Agency (BPS) said.

“Compared with the fourth quarter of 2010 the economy expanded 1.5 percent,” BPS Chief Rusman Heriawan said here on Thursday.

Investment grew 7.3 percent, exports 12.3 percent and imports 15.6 percent. Meanwhile, household consumption rose 4.5 percent and government spending 3 percent.

“Normally, government spending falls (in the first quarter). With the 3 percent growth, the govern-

ment spending is better than that in the first quarter of 2010,” he said.

Overall, the industrial, trade, hotel and restaurant sector and the transportation sector respectively contributed 1.3 percent to the first-quarter growth.

Rusman said the agricultural, husbandry, forestry and fishery sectors in the first quarter of 2011 grew 18.1 percent from the fourth quarter of 2010.

“This is because we entered harvest time for rice and other food crops in the first quarter of 2011,” he said.

He said the transportation and communication sector grew 13.8 percent, trade, hotel and restau-

BPS Chief Rusman Heriawan rant sector 7.9 percent and the financial, real estate and financial service sectors 2.7 percent in the first quarter of 2011 compared with the same period last year.

“The communication sector recorded significant growth due to an increase in the number of cellular phone users,” he said.

“Compared with the fourth quarter of 2010 the economy expanded 1.5 percent.”

RI Industrial Exports Up 34 pct in Q1 Industrial products served as the main engine of Indonesia`s non-oil/non-gas exports in the first quarter of 2011 when they grew 34 percent compared with the same period last year, Trade Minister Mari Elka Pangestu said.

In the first quarter of 2011, industrial products contributed $28.4 billion to the state coffers compared to $21.1 billion in the corresponding period last year, she said when disclosing monthly export and import performance at

a meeting here on Tuesday.

Quoting data from the Central Statistics Agency (BPS), she said industrial products accounted for 62.57 percent of non-oil/non-gas exports in the first quarter of 2011 compared to 59.39 percent in the same period last year.

“The increase in industrial product exports is one of the indicators that domestic industries have begun to recover,” she said.

Among the industrial products that recorded growth at the start

of this year were textiles and textile products, footwear, electronics and automotive products.

Data from the Trade Ministry show textile and textile product exports rose 14.4 percent to $1.89 billion in the first two months of this year from US$1.65 billion in the same period last year.

The data also show electronic product exports increased 12.2 percent to $1.63 billion in the January-February 2011 period from the year before.

Footwear exports jumped 44.1

percent to $507.4 million in the year to February 2011 from $352 million a year earlier.

Automotive product exports meanwhile climbed 46.1 percent to $490.6 million in January and February 2011 from $335.9 million in the same period last year.

According to BPS, large-and medium-sized industries in the first quarter of 2011 recorded a 5.51 percent increase in their production compared to 4.26 percent in the same period last year.

Non-oil Exports Increase 12.88 pct The Central Board of Statistics (BPS) said Indonesia`s non-oil commodity exports in March increased 12.88 percent to $13.32 billion compared with that a month earlier.

“If compared with that in the previous year, it also increase by 25.62 percent,” BPS Chairman Rusman Heriawan said when he announced the monthly official statistics data here on Monday.

He said that the biggest export increase in March 2011 occurred with the rubber commodity group, namely reaching $201.4 million while the biggest decline happened with the fat and vegetable oil commodity group at $559.7 million.

Most of the non-oil commodity exports in March 2011 were shipped to Japan ($1.53 billion), the United States ($1.41 billion) and China ($1.3 billion).

“The exports to the three countries contributed about 31.86 percent to the total non-oil commodity exports,” he said.

He said that Indonesia`s non oil commodity exports to European countries were worth $1.69 billion and ASEAN countries $3.20 billion with a market share of 13.40 percent and 23.31 percent respectively.

The BPS chairman also said that in the first three

months of 2011, non oil exports also were recorded at a high level reaching $37.12 billion or an increase of 28.66 percent compared with the corresponding period in 2010.

Manufacturing production grows 5.15% Indonesia`s big and medium manufacturing industries` production grew 5.15 percent in the first three months of 2011, according to the National Statistics Bureau (BPS).

“It`s quite good because it surpassed 5.0 percent. In the first three months last year it grew only 4.6 percent. That is indeed the pattern namely it is always positive in the first three months as of 2001,” BPS chief Rusman Heriawan said here on Monday.

Industries that recorded growth in production in the first three months of 2011 include basic metal, electric machinery and equipment, paper and paper products, non-machinery metal products, textiles, leather and leather goods, footwear, motor vehicles and garment.

The production of basic metal industries was recorded to rise 26.29 percent, electric machinery and equipment 21.49 percent, paper and paper products 17.31 percent and non-machinery metal products 16.85 percent.

“Production also increased in the tobacco processing industries, transportation means, machinery, food and beverages, non-metal mining products, chemicals and furniture,” he said.

He said during the period a de-

cline in production was recorded at rubber and rubber product industries by 2.89 percent, wood and wooden products industries (1.44 percent), publications, printing and reproduction of media recording (0.9 percent) and radio, television and telecommunications equipment (0.11 percent).

Rusman said although it grew from the same period last year production in the manufacturing industries in the period was still lower than in the fourth quarter of 2010.

Compared to that of the fourth quarter of 2010 production in the big and medium manufacturing industries in the first quarter of 2011 was down 2.18 percent.

Manufacturing industries that suffered a drop in production compared to that of the previous period are rubber and rubber product industries, publications, printing and media recording reproduction, radio, television and communications equipment, food and beverages and furniture.

Production in basic metal industries, electric machinery and equipment, paper and paper product, non-machinery metal product, textiles, leather and leather products, footwear and motor vehicles rose 15.29 percent while in garment industries also kept rising.

The President Post

A6 May 20, 2011

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ASEAN Asean Economic Profile As a collective grouping ASEAN basic indicators suggest that ASEAN is becoming a large economic entity in East Asia. Right after China and India.

In terms of population and as a market, ASEAN is nearing the amount of 600 million “customers” with increasing purchasing power. And in terms of total GDP (economic size) it has reached more than $1.5 trillion (rated among the 10 largest economies in the world).

By Atmono Suryo

ASEAN’S ESTABLISHMENT As ASEAN is nearing 45 years of its existence and as Indonesia is presently holding ASEAN’s chair, it may be useful to take a closer look at ASEAN’s present economic profile.

ASEAN was born during the most uncertain and difficult times for Asia. There was the question of confrontation between neighboring countries (Indonesian and Malaysia), the fear of the spread of a foreign ideology (communism), and the possibility of falling dominoes (countries with weak political-economies). In addition, there was the impact of local hostilities and the coming end of a war situation (Vietnam War) .

It was on 8 August 1967 when ASEAN was founded by five foreign ministers from the region: Adam Malik from Indonesia, Narcisco Ramos from the Philippines, Rajaratnam from Singapore, Tun Abdul Razak from Malaysia and Thanat Koman from Thailand.

Since then ASEAN has grown to become the “ASEAN Ten” with the addition of Brunei Darussalam, Vietnam, Lao PDR, Myanmar and Cambodia.

Not much attention was given by the world with the estab-

lishment of the newly-formed association. Earlier attempts were made to establish such a grouping: There was among others the establishment of ASA, Maphilindo and other types of cooperation, but they all failed. There was also the feeling that the new grouping would also end with the same fate.

It won’t last long, as they often said at that time. It is now been proven that they were all wrong.

When the founding fathers met in a small place in Thailand the question of strategic and security issues were uppermost in their minds although the question of economic improvements and people’s welfare were also discussed.

Perhaps few people in Indonesia know that Indonesia was one of the key countries in the establishment of ASEAN. Even the name ASEAN came from Indonesia through Adam Malik, to replace the earlier suggested name SEARC (South East Asia Regional Cooperation). That name reminded them of the many wild sharks permeating the oceans surrounding the archipelago.

BASIC INDICATORS With all its many shortcomings ASEAN current basic indicators suggest that in the economic area ASEAN as a regional grouping has been doing quite well. There is

much criticism until today about “ASEAN’s slow and uncertain ways” of handling many issues, in particular the implementation of agreed programs. Apparently not much was trickling to the lower echelons.

But we must now admit that progress has been achieved. Considerable progress has also been achieved by ASEAN’s respective member countries. And more importantly, ASEAN has gained an international standing.

As a collective grouping ASEAN basic indicators suggest that ASEAN is becoming a large economic entity in East Asia after China and India. In terms of population and as a market, ASEAN is nearing the amount of 600 million “customers” with increasing purchasing power. And in terms of total GDP (economic size) it has reached more than $1.5 trillion (rated among the 10 largest economies in the world).

Figure 1. ASEAN Basic Indicators, 2008 Total population

583.7 million

Total land area

4.4 million sq.km

Total GDP

US 1,506.2 billion

GDP growth

4.4 per cent

Total trade

US $ 1,710.4 billion

Total exports

US $ 879.14 billion

Total imports

US $ 831.23 billion

Intra-ASEAN Exports

US $ 242.5 billion

Intra-ASEAN imports

US $ 215.6 billion

Intra-ASEAN Trade

26.8 per cent of ASEAN total trade

FDI inflows

US $ 60.2 billion

Intra-ASEAN FDI Inflows

US $ 11.1 billion

Source: ASEAN Secretariat

It is recognized among others by analysts and experts of the Asian Development Bank that the “ASEAN framework provides an advanced model of international cooperation and a framework for exploring new integration strategies.

ASEAN countries have been at the forefront, individually and collectively, of the rise of Asian regionalism.”

ASEAN IN THE GLOBAL ECONOMY One of ASEAN key policies is the development of its external relations, particularly to develop dialogues, cooperation and partnerships with many important countries, regional and sub-regional organizations and institutions. This has been done with great success as countries and international institutions are eager to develop closer relations with ASEAN. In that respect Indonesia’s role has been quite significant.

It is recognized among others by analysts and experts of the Asian Development Bank that the “ASEAN framework provides an advanced model of international cooperation and a framework for exploring new integration strate-

gies. ASEAN countries have been at the forefront, individually and collectively, of the rise of Asian regionalism.”

ASEAN has developed its external relations with the following countries: Australia, Canada, China, European Union, India, Japan, RO Korea, New Zealand, Russia, United States, UNDP, Pakistan, International/Regional Organizations. There are many countries on the waiting list.

It is not well-known, especially in Indonesia, that ASEAN’s position in the global economy has increasingly become quite significant: GDP 2008: In terms of economic size in the global economy ASEAN occupies 5th place, as can be seen from the following statistics for the year 2008: EU 27

US $ 18,142 billion

USA

US $ 14,265 billion

Japan

US $ 4,924 billion

China

US $ 4,402 billion

ASEAN

US $ 1,507 billion

India

US $ 1,210 billion

R.O. Korea

US $ 947 billion

In terms of economic growth during the year 2008 ASEAN is in 3rd place after China and India, followed by Korea, Australia-New Zealand, EU, and the US. ASEAN is growing faster than the more advanced countries.

Among the ASEAN countries Indonesia is the largest country: Rank

Country

GDP (millions of USD)

-

World

78,360,000

-

European Union

18,930,000

-

United States

-

ASEAN

14,330,000

1

Indonesia

496,800

2

Thailand

272,100

3

Malaysia

214,700

4

Singapore

192,800

5

Philippines

186,000

6

Vietnam

90,880

7

Brunei

17,180

8

Burma

13,700

9

Cambodia

10,820

10

Laos

1,486,467

5,187

With regard to GDP per capita in PPP dollars, however, ASEAN is still on the low side after Korea and China but still higher than India.

REVITALIZING ASEAN The aims and purposes of ASEAN were set out in the ASEAN Declaration. It includes among others the following economic aims: • To accelerate economic growth • To strengthen the foundation to achieve prosperity • Promote active collaboration and mutual assistance • Provide assistance in the form of training and research facilities • Greater utilization of agriculture and industries • Expansion of trade • Improvement of transportation and communication Much progress has been achieved in some of these aims, while in other areas much work has still to done. The time has now come to correct the situation as the economic environment is presently more conducive.

ECONOMIC INTEGRATION A highly important and strate-

gic decision was taken by ASEAN to agree to establish the ASEAN Community by 2015 based on three pillars: political security; economic (AECASEAN Economic Community) and socio-cultural. It is understandable that this is not an easy decision for many countries with strong national aspirations such as Indonesia.

Under the AEC (economic community) ASEAN aims to transform itself into a single market and production base.

There will be • Free flow of goods; • Free flow of Services; • Free flow of investment and also freer flow of capital and skilled labor.

To transform itself into a single market with free flow of goods is a much more easy process. Indonesia’s market itself is already a huge attractive market for many foreign countries, including China, India, Korea and the EU countries.

Indonesia could also become an attractive place for the free flow of investment and to serve as a good production base. But much work still has to be done to further improve the investment climate. It is not clear, however, how Indonesia will do in the area of services and the question of skilled labor.

In any case, Indonesia will be able to take ASEAN into the global economy as one of the main objectives of its chairmanship. But so much has still to be done by Indonesia itself to take such a role. (To be continued in the next edition.)

The writer is former Indonesian ambassador to the EU.

The President Post

www.thepresidentpost.com

May 20, 2011 A7

Around Jababeka Bekasi Power Plant to Help Government Secure Electricity Supply With the operation of Bekasi Power plant, the public’s electricity needs in Jababeka residential area and industrial area will be fulfilled. The service quality is classified as premium with uninterruptible power supply that will satisfy selective customers.

E

al consumers.

The investment needed to meet the electricity demand is huge, at $97.1 billion per annum. However, the government can only afford to allocate Rp 40.7 trillion (about $5 billion) for the energy sector in the 2011 state budget.

In inviting investors to the country, the government is often faced with two basic questions, the availability of road access and electricity supply. Investors would be reluctant to invest in the country if these two key factors are not met, especially in industrial areas where many developers can afford to provide road access but not electricity due to the high cost and the expertise needed.

PT Bekasi Power, which has

customers in certain business areas, will not only build power plants, but will also provide generators, distribution networks and electricity retailers.

With the operation of Bekasi Power plant, the public’s electricity needs in Jababeka residential area and industrial area will be fulfilled. The service quality is classified as premium with uninterruptible power supply that will satisfy selective customers.

Commenting on the 20-year agreement, PLN Director of Business and Risk Management Murtaqi Shamsuddin said, “PT Bekasi Power, which is located in Jababeka Industrial Estate, sells electricity to PLN and vice versa. This will ensure that Jababeka Industrial

Estate will get a sufficient electricity supply. “ Meanwhile, President Director of PT Bekasi Power Setiyono Djuandi Darmono said such cooperation is deemed beneficial to the nation.

“If we sell our electricity to PLN, PLN will sell it wisely to companies in Jababeka as there is a specified margin. This would be beneficial in the long run because PLN can determine a proper price.

If we sell it directly to consumers, we will offer a commercial tariff,” he said.

Director of PT Bekasi Power Teguh Setiawan said Bekasi Power supplies 135 MW of electricity to PLN and this will strengthen

Cikarang Dry Port to Play Role in Global Trade Network Cikarang Dry Port has started operations since August 2010 to support export and import activities of industrial companies to Tanjung Priok Port. Companies may complete their port clearance and custom clearance documents in Cikarang Dry Port (CDP).

In April 2011, International Shipping Company (Main Line Operators) launched a new service called Multimodal Transport Bill of Lading via KPPT - Cikarang Dry Port. Multimodal Transport Bill of Lading is a document issued by an International Shipping Company to owners of goods in which the delivery of their goods are transported using more than one mode of transportation. The shipping company is fully responsible for shipping the goods from port of origin to final port of destination.

Currently, shipping companies that provide the service is Maersk Line, MCC Tranport, and Safmarine. Other shipping companies are in the process of joining.

Through this service, KPPTCDP is connected with other ports in other parts of the world and becomes an international trade route with the inclusion of “Cikarang Dry Port, Indonesia” in Shipping Company documents as Port of Origin (Place of Receipt) or Port of Destination (Place of Delivery).

The service provides customers with options whether to ship their goods from Yokohama, Japan to Tanjung Priok, Jakarta, or from Yokohama, Japan, to Dry Port Cikarang, Indonesia. The

documentation process, inspection and other activities will be conducted in KPPT-CDP, including the Customs and Quarantine Facility. For customers, this onestop service provides convenience, service assurance, and improves profitability.

Cikarang Dry Port is a common port which offers one-stop service for handling goods and logistics solutions for import and export activities also domestic distribution.

CDP provides port and logistics services that integrate with the supply chain and logistics players in it, including exporters, importers, shipping companies, port operators, warehouse CFS (container freight station), bonded warehouse, transportation, third party logistics (3PL), empty containers depot, banks and other supporting facilities.

Cikarang Dry Port is part of a series of programs set up by the Indonesian government, namely the Customs Integrated Service Area (KPPT) and Indonesia Blueprint Logistic. This national program aims to align business

processes and to improve Indonesia’s competitiveness in the field of supply chain and goods distribution which is expected to increase the volume of both international and domestic trade.

CDP refers to the SAFE Framework of the World Customs Organization and other international standards in order to enhance international trade and giving more value to the supply chain players both in Indonesia and abroad.

CDP’s role to speed up exportimport traffic from Jababeka Industrial Estate and surrounding industrial area to Tanjung Priok port is supported with railways.

Before operating, the railways have been tested such as on May 3, 2011, where Simpang Sepur CDP was tested with a freight train that was headed to Surabaya. The head of Daop (kepala daerah operasi) I Jakarta, the head of PT KAI Logistic and CDP management attended the ceremony.

For further information, please contact: Tel: (62-21) 2908 2908 marketing@cikarangdryport.com www.cikarangdryport.com

Senior Citizen Housing of Jababeka Medical City is a special housing complex intended for senior citizens, built in cooperation with Long Life Holding Co., a senior citizen housing management company based in Japan.

Senior Citizen Housing is designed with infrastructure adjusted according to the needs of senior citizens.

Each unit has 10 rooms consisting of a living room, mini kitchen, and a 24-hour nurse care. All furniture and equipment in the house meet international standards for senior housing.

Senior Citizen Housing provides various activities to enable senior citizens to take up their hobbies such as gardening, playing golf, karaoke, reading, or play with their families in the open green spaces that surround the houses, and go for picnic to many places. The complex also has a salon and an art room.

lectricity demand in Indonesia continues to rise in line with a growing number of household and industri-

To meet the public’s electricity demand amid limited financial sources, the government and PLN need to make a breakthrough.

One of them is by restructuring the supply and management system by implementing Electricity Act No. 30/ 2009. The Act stipulates private sector’s involvement in electricity provision and management for the public.

As the government opens the door for the private sector to take part in electricity supply, PLN invites investors together with Independent Power Producer (IPP) and other private parties to build power plants, similar to the cooperation it established with PT Bekasi Power on February 24, 2011.

Jababeka Medical City in Joint Cooperation with Long Life Holding Co.

the Java-Bali electricity grid, particularly in the Jababeka industrial area. Gradually, PT Bekasi Power will increase its power supply based on PLN’s demand because it has obtained gas supply guarantee through another cooperation agreement with PGN and Pertamina.

All facilities are located inside Jababeka Medical City complex, a 74-hectare property land in Jababeka City. Medical City is designed to provide a living environment that combines the conveniences of a modern world class city with the most advanced health and medical care available, plus the charms of an unspoiled countryside setting. There are also medical research center, clinics, pharmacies,

and other supporting health facilities.

PT Jababeka President Director SD Darmono said that the retirement room will become a common lifestyle in Indonesia because the country is in the process of becoming a modern country.

“Jababeka is an international city where investors come from 30 countries. Therefore, we find the need to build a retirement home for both expatriates and Indonesians,” he said.

The employees of Senior Citizen Housing will get direct training from Japan to meet international standards. Senior citizens above 60 years old may live in Senior Citizen Housing under three categories: • fully healthy • healthy but need support • handicappers Long Life Holding Co., Ltd. is a Japan-based holding company mainly engaged in the provision of nursing care services. The company is active in three business

segments. The nursing care segment has three business divisions. The home nursing care division operates fee-charging nursing homes and group homes, and provides nursing care services such as visiting bath services, visiting care services and day services.

The welfare education division operates LONGLIFE Medical Welfare Vocational School which trains visiting nursing care workers.

The entrusted division manages and operates parts of fee-charging nursing homes that are operated by Hyogo Prefectural Housing Corporation. The food services segment provides food for feecharging nursing homes and others.

The investment segment is engaged in the selection of investment candidates domestically and abroad, and the review of business participation methods, among others.

The President Post

A8 May 20, 2011

Education More Entrepreneur Scholarships from MRUF This year, MRUF is providing scholarships for 35 students out of 84 total participants from seven campuses in Indonesia.

T

he Mien R Uno Foundation (MRUF) offers scholarships to students from several universities that aspire to become en-

trepreneurs.

MURF Executive Director Nanang Suryanto said the scholarship program is aimed to encourage students to become entrepreneurs.

“Hopefully through this program we can create new young entrepreneurs who can succeed even before they graduate from their studies,” said Nanang in a symbolic handover of MRUF scholarships at Jakarta’s Senayan Golf Driving Range.

This year, MRUF is providing

scholarships for 35 students out of 84 total participants from seven campuses in Indonesia. They are ten students from Bogor Institute of Agriculture (IPB), two students from Bandung Institute of Technology (ITB), four students from Ten November Institute of Technology Surabaya (ITS), three students from University of Gadjah Mada (UGM), eight students from University of Andalas, four students of University Padjadjaran, and four students of University of Indonesia (UI). They will receive a Rp 400 thousand per month for a year.

MRUF Chairman Indra Uno said that the unemployment rate in Indonesia is high and the number of unemployed university graduates is also high. Unemployment in Indonesia reaches 8.32 million people, dominated by university graduates and holders of diploma degrees.

“Therefore, a concerted effort is needed to prevent the number of educated unemployment from increasing. MRUF aims to prevent

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these students from becoming unemployed when they graduate by encouraging them to become entrepreneurs and by giving them this scholarship. They will create a job for themselves by becoming entrepreneurs and also provide jobs for others,” said Indra Uno Scholarship recipients will go to Entrepreneur Camp in Cipanas, where they will be trained and instilled with the spirit of entrepreneurship.

“We are optimistic that these students will be able to enhance their businesses after following our training; we will monitor their development and facilitate them to overcome obstacles that may arise. Those who do not have a business will soon open a business,” Nanang added.

who are expert in their fields.

Last year, MRUF provided similar scholarships to 33 students from various universities. Of these, 21% have new businesses, 30% increased their businesses, and 9% still require attention.

MRUF was founded in 2002 by Razif H. Uno who was helped by his sons Indra Uno and Sandiaga S. Uno. The foundation focuses on the development of the young generation and aims to create an independent society targeting two main groups, namely students and young microfinance entrepreneurs through training, assistance, and funding.

MRUF’s Student Entrepreneurial Scholarship Program provides training, consulting, mentoring, marketing assistance, as well as financial assistance for the students. MRUF will also facilitate them to meet real entrepreneurs

MRUF’s Student Entrepreneurial Scholarship Program provides training, consulting, mentoring, marketing assistance, as well as financial assistance for the students. MRUF will also facilitate them to meet real entrepreneurs who are expert in their fields.

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

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Business

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Display until June 19, 2011 /// N0. 24

BUSINESS BRIEFS

Indomobil Finance to Offer Bonds Worth Rp 500 b

PT Dirgantara Exports CN-235 Aircraft-maker PT Dirgantara Indonesia is exporting the CN-235 to Senegal, Africa.

“This is a significant export, especially after not exporting for years,” said PT Dirgantara Indonesia CEO, Budi Santoso, last month.

The last time the company exported a military airplane was in 2008. The airplane delivery to Senegal was the third order from AD Trade, an airplane supplier agent from Europe.

AD Trade ordered the airplane for its buyer, the Senegalese government. In the past, PT Dirgantara Indonesia sold an airplane to Burkina Faso.

The sale contract for one CN-235 is valued at $13 million and was signed in November last year. The plane is a modification of the CN235-110 which formerly belonged to Merpati Nusantara Airlines. PT Dirgantara Indonesia changed the type, the machine and added an autopilot system.

Nineteen Securities Apply for Online Transactions Stock exchange members are interested in online share transactions.

The Indonesian Stock Exchange’s information and technology director Adikin Basirun said 19 securities companies had applied for the transaction permits.

“They are now preparing the development,” he said recently.

When the development is completed, the stock exchange managers will try out the development area and production.

Chinese Contractors to Work on Medan’s Toll Road Asep Sudrajat, the Public Works Ministry’s Bina Marga Directorate General’s Area I director, said three Chinese companies had passed the pre-qualification stage for the Medan-Kualanamu toll road project in Sumatra.

“These companies will cooperate with local construction companies,” Asep said last month.

The three companies are CHEC CSEC, cooperating with PT Hutama Karya, Shanghai Construction General Company, cooperating with PT PP and Sinohydro Corporation Limited, cooperating with PT Waskita Karya. The companies were asked to submit their proposals yesterday.

The contract plan will be signed on June 15, 2011.

The Medan-Kualanamu toll road construction is worth $137 million, with financial assistance from the 2011 State Budget amounting to $15.22 million. The investment is valued at Rp 1.14 trillion.

The Medan-Kualanamu-Tebing Tinggi toll road will be offered by the government through a public private partnership. The toll road is expected to be completed in 2015 so that it can connect with the Belawan-Medan-Tanjung Morawa (Belmera) toll road.

B

The President Post

Automotive financing company PT Indomobil Finance Indonesia plans to offer rupiah-denominated bonds worth Rp 500 billion soon.

The bonds will consist of series A due in 360 days, series B due in 2 years, series C due in three years and series D due in four years, according to the company`s condensed prospectus published last week.

FISH IMPORT: Ministry of Maritime Affairs and Fisheries has been granting licenses to 23 companies to import fish. 15 companies

are for industrial processing and 8 companies to meet domestic market. The objective is to increase national revenue by increasing the value and accommodate the workers in the country. The President Post/Nandi Nanti

The bonds have received an “A” rating from local rating agency Pefindo. The rating outlook is stable.

The bonds will be on sale on June 1-6 and listed at the Indonesia Stock Exchange (BEI) on June 10.

The company has appointed PT Kresna Graha Sekurindo Tbk, PT Indo Premier Securities, PT CIMB Securities Indonesia and PT Nikko Securities Indonesia as bond issue underwriters.

Pertamina, Kodeco Extend Contract for West Madura PT Pertamina and Kodeco Energy Co. Ltd. signed an extension contract for West Madura Offshore Block with the Oil and Gas Upstream Regulating Agency (BP Migas) representing the government here last week.

K

ardaya Winarka, the expert staff of the minister of energy and mineral resources, said after the signing that Pertamina would become the operator of West Madura under the new contract holding 80 percent

participating right while Kodeco 20 percent.

The signing of the contract was done by the president director of PT Pertamina`s West Madura Upstream Energy (PHE), Hemzairil, Kodeco`s general manager, and head of NP Migas R Priyono, witnessed by Minister of Energy and

Mineral Resources Darwin Saleh.

The cooperation contract for West Madura Block was first signed on May 7, 1981 with Korean company Kodeco as the operator with a stake of 25 percent.

Other stake holders are Pertamina (50 percent) and Chinese CNOOC Ltd. (25 percent).

On May 7, 2011 or after 30 years of operation according to regulations the contract would expire.

Two months before the expiration of the contract the government agreed to changes in ownership of participation rights.

Based on it Kodeco handed

over 12.5 percent of its right to PT Sinergindo Citra Harapan and CNOOC Ltd. to Pure Link Investment Ltd. also 12.5 percent.

Pertamina then held 50 percent, Kodeco 12.5 percent, CNOOC 12.5 percent, Sinergindo 12.5 percent and Pure Link 12.5 percent.

Although it only holds 12.5 percent Kodeco remained the operator of the block until decision is made after May 7, 2011.

On April 28, 2011 BP Migas sent a letter to the minister of energy recommending a change in

the composition of West Madura participating right holders after the expiration of the contract on May 7, 2011.

So the composition changed again with Pertamina holding 60 percent, Kodeco 10 percent, CNOOC 10 percent, Sinergindo 10 percent and Pure Link 10 percent.

However with the agreement signed on Thursday Pertamina now holds 80 percent and Kodeco 20 percent, as CNOOC, Sinergindo and Pure Link withdrew from participating in the operation of West Madura.

The President Post

B2 May 20, 2011

www.thepresidentpost.com

Business 81 State Firms by 2014: Minister The reduction in the number of state firms was intended to increase the performance and the value of the company.

T

he Ministry of State Enterprises (BUMN) is to reduce this year the number of stateowned companies from 142 firms at present to 118 at the end of the year and 81 by 2014, its chief said.

“Our plan to reduce the number of state-owned companies will affect 24 state firms and will be carried out in an effort to restructure BUMNs,” State Enterprises Minister Mustafa Abubakar said at his office recently.

He said 15 plantation firms

State Enterprises Minister Mustafa Abubakar

(PTPN ) from PTPN I TO PTPN XIV plus PT Rajawali Nusantara Indonesia would be merged into one holding company.

Forestry firms (PT Inhutani I to PT Inhutani V) would be merged into one holding company under state-owned company Perum Perhutani. One BUMN in the dredging sector would be merged into a state-owned port company as a holding company. One multifarious industry BUMN and two others in the agriculture sector would be merged into one firm.

Mustafa said all restructuring programs in the work plan would be finished this year.

In accordance with its aim, the reduction in the number of state firms was intended to increase the performance and the value of the company. It is also intended to increase state receipt in the form of taxes and dividends.

Based on the 2010-2014 master plan of the ministry of state enterprises, the number of BUMN would be reduced to 104 in 2012, 95 in 2013 and 81 in 2014.

Garuda Aids Japanese Children in Disaster-affected Region National flag-carrier Garuda Indonesia has made a commitment to support children in Japan`s Tohoku region which was severely affected by the recent earthquake and tsunami.

Faik Fahmi, Garuda Indonesia`s senior general manager for Japan, Korea, China and the USA had visited Yoshiomi Tamai, Founder and President, Director of East Japan Earthquake and Tsunami Emergency Operations Center, and made a commitment to support children in the devastated Tohoku region, according to a Garuda Indonesia public relations release.

Garuda has great sympathy for the victims of the earthquake and tsunami in Japan and “all our thoughts go to those who suffered in the disaster.” the airline said in its website on Wednesday.

Terry said “the similarity with other fields in the Cepu Block confirms our exploration strategy in the block. In addition to it, its vicinity to the Banyu Urip field makes for a good integration op-

portunity for the development of the new discovery.”

The drilling at Kedung Keris-1 was done to a depth of 2,143 meters. The well is close to a 171 meters thick oil layer in the targeted carbonate zone.

The well is located 14 kilometers from the Banyu Urip field in Mojodelik, Ngasem district, Bojonegoro, East Java, discovered in 2001.

“The drilling activities have been completed without vocational, health or environmental accidents,” he said.

He said in the next few months data from the Kedung Keris-1 field would be analyzed to assure the full potential of the reserve.

BCA’s Profit Up 4.4 pct in Q1 Bank Central Asia (BCA) posted a net profit of Rp 2.0 trillion in the first quarter of 2011, up 4.4 percent from a year earlier.

“The profit was fueled by net interest income which rose 40.9 percent to Rp3.8 trillion from Rp 2.7 trillion in the same period last year,” BCA President Director D.E Setijoso said recently.

He said assets grew 14.9 percent to Rp 326.5 trillion from Rp 284.2 trillion and credit portfolios rose 24.4 percent to Rp 150.3 trillion. The bank`s loan-to-debt ratio (LDR) reached 54.4 percent, or lower than that set by Bank Indonesia (the central bank).

The lower-than-expected LDR was caused by the higher growth of third party fund placement instead of by the low amount of loans channeled, he said. He said the bank adopted prudential principles in approving applications for credits.

Bank CIMB Niaga posted a consolidated net profit of Rp 727.53 billion in the first quarter of 2011, up 39 percent from the same period last year.

The increase was the result of rising interest income after credits grew significantly by 31 percent to Rp109.98 trillion, the bank’s corporate communication chief Dina Sutadi said here last month.

In line with the bank`s vision as a universal bank, the credits grew evenly in all corporate, commercial and retail segments, she said.

She said CIMB Niaga would continue to focus on sharia compliant credits, micro financing and rahn (pawn). The last two are new businesses developed by CIMB Niaga.

As per March 31, 2011, CIMB Niaga`s total assets reached Rp 149.05 trillion, a 30 percent increase compared to the same period last year when the figure was Rp 114.50 trillion. Meanwhile, its loan-to-deposit ratio reached 90.31 percent.

The bank`s return on asset (ROA) rose by seven basis points to 2.65 percent from the same period last year. Its return on equity also rose to 19.25 percent from 18.25 percent.

The bank channeled about 21 percent of its total loans to customers outside Java to reflect its comprehensive strategy in distributing credits in the country.

BUILDING MATERIALS A worker is seen transporting cement in the port of Sunda Kelapa, Jakarta. In 2011, Bakrie Building Industries has set the target of producing 260,000 tons of fiber cement, up about 25 percent from 2010. From the total production, 90 percent are for the domestic market while 10 percent are exported to countries in Asia and Africa The President Post/Nandi Nanti

Mobil Discovers New Field in Bojonegoro, East Java Mobil Cepu Limited (MCL) president Terry S. McPhail said the company had discovered potential new oil reserves in the Kedung Keris field in the Cepu Block, Sukoharjom, Kalitidu, Bojonegoro, East Java.

“The discovery in Kedung Keris will add significantly to the 450 million barrels expected to be produced by the full exploitation of the Cepu BLock,” he said in a press release last week.

Pacific Royale Airways is optimistic that they will fly by the middle of year, even though the Directorate General of Air Transport has not issued an aviation business license (SIUP) yet, according to Samudera Sukardi, Pacific Royal operational project leader.

After obtaining the license, the full service airline will apply for an air operator certificate (AOC).

“The planes will arrive soon after we obtain the two certificates,” he said recently.

Pacific Royale plans to acquire 10 aircrafts, consisting of four Fokker 50s, four Airbus 320 and two Airbus 330.

CIMB Niaga’s Profit Up 39 pct in Q1

Garuda Indonesia would initiate a project dubbed “Gambaro Nippon#! (The Japanese Spirit Always) to support the earthquake and tsunami victims, the airline said.

“We would like to support children who will be the generation of the future in cooperation with certain other parties,” it said.

The program includes donations that will be made by Garuda to the Ashinaga, a social nonprofit organization dedicated to the welfare of children.

Established in 1988, Ashinaga is a nonprofit organization providing support both physically and spiritually to children who have a parent with a serious disability and not able to work, or who have lost one or both parents due to illness or disaster.

In 2004, after the Indian Ocean earthquake and tsunami, 60 orphans who lost their parents due to tsunami were invited to the exchange meeting between 2005 and 2007 and to provide emotional care and support for self-reliance by having an interchange with other orphans who were in the similar situation around the world.

Pacific Royale Set to Operate

The discovery in Kedung Keris will add significantly to the 450 million barrels expected to be produced by the full exploitation of the Cepu BLock,”

Mobil Cepu Ltd. is the operator of Cepu Block. Mobil Cepu Ltd and Ampolex PTE Ltd. are both subsidiaries of Exxom Mobil Corporation that hold 45 percent shares in Cepu Block along with PT Pertamina E Cepu that holds 45 percent shares and the Cepu Block Cooperation Board that holds 10 percent shares.

“Earlier the company has also discovered four gas reserves in Cepu Block since exploration was started in 1999,” he said.

On a separate occasion Mobil Cepu Ltd. public government affairs official Rexy Mawardijaya confirmed the discovery of oil reserves in Kedungkeris, Sukoharjo

in the sub-district of Kalitidu.

“All the data are still being studied to assure its real potential,” he said.

Cepu Block itself is currently still producing around 20,000 barrels a day from four wells in the Banyu Urip field. Most of the production has so far been sent through a pipeline to Tuban while around 5,000 barrels are processed in a mini-refinery in Sumengko village in Kalitidu.

Oil production in Cepu Block is expected to reach 165,000 barrels per day by 2013 from 49 wells namely 36 production wells and the rest water and gas injection wells.

Telkom Acquires CamGSM this Year State telecommunications operator PT Telkom has set itself the target of acquiring CamGSM, Cambodia`s largest cellular operator, this year.

“We hope the acquisition could be completed this year,” PT Telkom President Director Rinaldi Firmansyah said here recently.

The acquisition process was still going on. PT Telkom and CamGSM were in the middle of agreeing on bidding price, he said. He said PT Telkom was currently competing with three other telecommunications operators from Europe and Asia to acquire CamGSM shares.

“Telkom expects to hold a 51 percent stake or majority shares in CamSSM,” he said.

This year, PT Telkom has set aside Rp 1 trillion in funds to acquire other companies` shares. The funds are outside the company`s capital expenditure estimated at Rp 16 trillion to Rp 17 trillion.

He expressed hope that the acquisition of CamGSM shares would directly contribute to the company`s income. However, he stopped short of revealing how much the acquisition of CamGSM would cost PT Telkom.

Meanwhile, Telkom`s multimedia executive general Joddy Hermady said the company`s plan to acquire CamGSM shares had been included in its business plan of 2011. To date, Cambodia, with a population of 14 million, has 9 cellular operators.

The President Post

www.thepresidentpost.com

May 20, 2011 B3

Investment www.klimg.com

Former VP Kalla Invests Rp 4 t in PLTA Kerinci Kalla said such a big investment would not lead to negative sentiments in the business world he was undertaking, because investment in the power sector is highly potential and serves the interest of people and the environment.

F

ormer Vice President Jusuf Kalla, owner and president commissioner of PT Bukaka, said he will invest Rp 4 trillion in a hydro power project.

“The project may cost Rp 4 trillion, maybe more, as one turbine for the project with a capacity of 10 MW alone will cost Rp 15 billion, while we have to build four giant turbines with a total capac-

ity of 1,800 MW in two points,” he said in Kerinci recently.

He made the statement when inspecting the PLTA Kerinci project in Air Mlancar village, Muaro Imat, Batsng Merangin Kerinci sub-district, the construction of which was started by the end of last month.

Accompanying Yusuf Kalla in the inspection was Ahmad Kalla, his younger brother as presi-

dent director of the family company who has wide experience in building PLTAs in various parts of Indonesia like Poso, Pekanbaru, and Maninjau lake in West Sumatra.

Kalla said such a big investment would not lead to negative sentiments in the business world he was undertaking, because investment in the power sector is highly potential and serves the interest of people and the environ-

ment.

“Electricity will become a primary need which must be satisfied because nothing will in the future not use electricity and even cars will be running on power,” he said.

“We will be making a long-term investment, one century or 100 years, the result will also be enjoyed by our children and grand children, like the Jatiluhur in West Java,” he said.

JP Morgan:

Former Vice President Jusuf Kalla, owner and president commissioner of PT Bukaka, said he will invest Rp 4 trillion in a hydro power project.

RI’s Geothermal Sector Wide Open for Investment

RI Good Place for Investment www.portfolio.com

International financial company JP Morgan praised Indonesia`s economic policies that had made the country one of the world`s most attractive investment destinations.

“The Indonesian government has worked well and we believe Indonesia has become an attractive place for investment and it will continue to develop,” JP Morgan Chase`s Chief Executive Jamie Dimon told newsmen after meeting with President Susilo Bambang Yudhoyono here early this month.

“We have been briefed about the Indonesian economic development acceleration program (MP3EI) and hope we can help and be involved in it,” he said at a press conference with head of the Capital Investment Coordinating Board (BKPM), Gita Wirjawan.

Gita Wirjawan meanwhile said President Yudhoyono in the 30-

Investment in the sector would also support the government`s program in reducing gas emissions by 26 percent.

JP Morgan Chase’s Chief Executive Jamie Dimon minute meeting with Dimon had explained about the government`s plan in implementing the program.

Besides discussing MP3EI they had also talked about Indonesia`s position which has become better and more attractive as an investment destination country as well as the settlement of global bonds with JP Morgan worth $2.5 bil-

lion.

“Several days ago they helped the Indonesian government through the finance minister to settle global bonds worth $2.5 billion. This gives a good prospect as the pricing of global bonds has already reflected Indonesia`s eligibility as an investment grade country,” Gita said.

Volkswagen to Build Factory in RI European car maker Volkswagen will soon build a factory in Indonesia or at the end of 2011 at the latest, Industry Minister MS Hidayat said.

“I have had a talk with them (Volkswagen) about their plan.

They already have a blueprint on the project,” said Hidayat after attending the ASEAN-UE business summit at the Jakarta Convention Center (JCC) here recently.

it was hoping to realize it later this year, Hidayat said.

Volkswagen`s intention to expand its business in Indonesia was in line with the European country`s plan to increase its investment in Indonesia, especially in the automotive sector which had huge market potential. Hidayat, however, did not mention the amount Volkswagen would invest in Indonesia.

Volkswagen had been exploring the possibility of setting up a production facility in Indonesia for the past three years and now

The minister said the German auto maker`s plan to set up shop in Indonesia was in line with the exhaust emission standards cam-

paign in 2012 towards Euro-3.

“This is good news for the domestic automotive industry because the European automotive industry has no base yet in Indonesia where the market is so far dominated by Japanese and Korean brands,” Hidayat said.

According to earlier reports, the investment value of the would be Volkswagen factory in Indonesia was about 35 million euro and it was expected to absorb 2,000 to 4,000 workers.

Indonesia has huge potentials for investment in the geothermal energy development sector as until now investment in the sector still totals three percent, an official said.

“The potentials for investment in the geothermal sector is

huge but not all of them have have tapped maximally,” Head of the Capital Investment Coordinating Board (BKPM) Gita Wirjawan said here last Thursday.

He said geothermal energy source in Indonesia is 40 percent of the world`s, offering a good opportunity for investment and foreign investors to come into the country.

“Many investors have been interested to invest in the sector,” he said, adding investment has so far grown in Java, Bali and Sumatra while it has not yet grown in plac-

es outside the regions.

He said investors who would invest in Indonesia would later also develop infrastructure to smoothen their projects.

“Investors will later also build infrastructure to support their investment,” he said.

Gita said investment in the sector would also support the government`s program in reducing gas emissions by 26 percent.

“The emission reduction target is realistic, moreover if it is supported by investment program like this,” he said.

He said geothermal energy development has also been the government`s focus for maximizing the use of renewable energy.

Gita said several countries have already made investments and several others have also expressed their interest in the sector.

“Countries such as India and South Korea have already made investment reaching billion US dollars in total,” he said.

The President Post

B4 May 20, 2011

www.thepresidentpost.com

Property New Additional Retail Space Set to Come on Stream in Next Two Years Coldwell Banker Commercial in their recent press conference reported the performance of the property market during the 1st quarter of 2011.

T

he economy in the 1st quarter of 2011 showed an accelerated growth of 6.4%, higher compared to that in the fourth quarter 2010. In addition to that, economic indicators continued to show a conducive situation within a controllable level.

The conducive economic performance has led to a better property market performance during the 1st quarter 2011, which is indicated by the following factors: • More active construction activities • Larger number of newly launched projects • Higher transactions level and leasing activities in all property sectors • Increase in occupancy and sales rate • Rental and price levels moved to a more positve level Market performance of each property sectors is decribed in the following sections.

Jakarta Office Market

“In the begining of 2011, Jakarta’s office market grew significantly compared to that in 2010”.

Office market performance is expected to continue to increase in the next two years in line with improvements in the macro-economy as well as investment realization of foreign and domestic companies. Rental rate and price level will continue to enjoy a positive movement due to improvement in demand.

During the 1st quarter of 2011, about 148,900 sqm new additional office space came from three projects of Allianz Tower, Sentral Senayan and Central Park.

Net take up reached 86,500 sqm or up by 18.0% from that in the same period last year. Occupancy rate declined to 89.2% due to additional new completed supply during the 1st quarter. Absorption in CBD area contributed about 60% to total demand, whilst outside CBD area absorption was mostly contributed by new company establishment with size requirement below 500 sqm.

Even though some buildings adjusted their rental to a higher rate, the average rental remained stable at Rp157,600 sqm per sqm per month due to the Rupiah appreciation against the US Dollar. In US Dollar terms, rental increased by 3.5% over the 1st quarter of 2011.

Strata-title offices show a positive indicator with total absorption of 23,900 sqm or double from absorption in the same period last year.

Office market performance is expected to continue to increase in the next two years in line with improvements in the macro-econ-

omy as well as investment realization of foreign and domestic companies. Rental rate and price level will continue to enjoy a positive movement due to improvement in demand.

tal take-up in the 1st quarter represented 41.0% from total take-up during 2010. This indicates more active transactions in the condominium market compared to the previous period.

Greater Jakarta Retail Market

In the supply side, newly launched projects during the 1st quarter of 2011 accounted for 3,065 units and about 64.3% of them were targeted to the middle low market segment. This is unlike the previous year where most of the launched condominium projects were aimed at middle upper market segment. Most of the newly launched condominium units are located outside CBD area.

“Retail market over the 1st quarter 2011 was mostly generated by new occupations in newly completed retail development.”

Retail market for lease in Jakarta recorded a net absorption of 28,300 sqm during the 1st quarter, an increase of 50% of total absorption in the same period last year. In the Debotabek area, total absorption stood at 120,000 sqm, mostly contributed by new tenants’ occupation in the newly completed Living World in Tangerang and Cikarang City Walk at Bekasi.

Even though there were new additional retail space, occupancy rate of retail market in Jadebotabek area increased by 0.7% to 88.9% as most of that new additional supply had been occupied by tenants. New occupation in the newly completed projects in Bodetabek area had been the main demand generator during the 1st quarter. New occupations in Gandaria City and Central Park were major sources of demand in Jakarta area. Tenants in F&B, department store, entertainment and lifestyle were the most active type that undertook leasing transaction over the review period.

Large number of new additional retail space is expected to come on stream in the next two years.

It is estimated that after being increased in 2011, occupancy rate will decline in 2012 due to large number of new supply.

However, rental rate will increase slightly as some retail projects which enjoy higher occupancy continue to make adjustments in rental rates.

Greater Jakarta Condominium and Leased Apartment Market •

Condominium Market

“The condominium market in Jakarta continued to improve with demand generator, particularly from the middle low market segment.”

In the 1st quarter of 2011, the take-up of the condominium market in Jakarta stood at 3,673 units, up by 95.6% compared to the same period last year. The to-

In the midst of a larger number of newly launched condominium projects, sales rate in under construction projects increased by 13.5% to 65.9% at the end of the quarter. Whilst for existing condominium projects, sales rate increased by 1.0% to 95.3%.

Demand absorption mainly came from newly launched projects in the 1st quarter of 2011.

Based on market segment, projects targeted at middle low market segment recorded the highest demand of 73.0%. Several projects enjoyed high demand absorption, one of them being the Paramount residence in Serpong which was absorbed significantly since it was launched.

In the next two years, the condominium market is expected to see further increase supported by low interest rates. Developers are set to continue to actively launch new condominium projects particularly outside the CD area. The growth and expansion of universities in several locations in Bodetabek area is expected to prompt developers to take on new condominium projects to facilitate the accommodation requirements of students.

•

Leased Apartments

“The improvement in foreign direct investment has led to a better market performance of leased apartments and was particularly contributed by expatriates in the oil and mining and telecommunication sectors.”

Demand for leased apartment in the 1st quarter was 175 units or 32.0% of total absorption in 2010.

Leasing activities were particularly concluded in the prime area of South Jakarta to accommodate

requirement from the business sector in TB Simatupang. Occupancy of leased apartments outside CBD area increased by 1.8% to 72.5%, whilst the occupancy rate in the CBD area increased by 1.0% to 78.7%.

Demand improvement outside CBD area has led to rental adjustment in the area. During, the 1st quarter, rental outside CBD area increased by 2.1% in US Dollar terms. In the CBD area, rental of leased apartments was relatively stable and increased only 1.0% over the previous quarter.

An increase in investment realisation will be the main demand generator for the leased apartment market in Jakarta. South Jakarta is expected to continue to increase in terms of demand due to the growing business area in TB Simatupang.

the absorption in the 1st quarter 2010 represented 40.6% from total absorption in 2010. This was mostly supported by low interest rates as well as more active newly launched housing units.

Sale price of landed residential increased by 3.7% over the quarter, 1.0% higher compared to the price increment in the previous quarter.

“Demand increment in landed residential market was supported by attractive interest rates as well as higher level of newly launched housing products in the market.”

Based on market segment, demand absorption in the low ( < Rp 100 million) and middle low (Rp 400 –600 million) were main contributors to total absorption with 29.3% and 29.5% respectively.

Upper market segment ( Rp800 million–Rp2 billion) contributed 19.0% to the total absorption.

Demand for landed houses was indicated by the shift from middle-low and lower market segment to middle to middle-upper market segment during the last one year.

Demand for middle (sales price Rp600–Rp800 million) increased by 319% compared to the same quarter last year, whilst demand for low to middle-low market segment grew negatively during the same period.

Landed residential market in the 1st quarter improved significantly with a total absorption of 2,705 units or 34.5% increase from the previous quarter. Compared to the whole year of 2010,

Landed residential market is expected to continue increase next year, supported by attractive and low interest rates combined with a larger number of newly launched products in the market.

Greater Jakarta Landed Residential Market

COLDWELL BANKER INDONESIA

Coldwell Banker is a property consultant firm, established in 1906 based in the United States. With over one hundred years of experience, Coldwell Banker is consistent in integrity and professional ethics in meeting various needs of investment, valuation and property management for each clients worldwide.

Consistent innovation and breakthroughs are tradition that bring Coldwell Banker to stay ahead and be the best option for clients who require independent and strategic navigation of property market development in decision making process.

Based on that philosophy, Coldwell Banker focuses its services into two brands, namely Coldwell Banker Commercial (CBC®) and Coldwell Banker Property (CBP®).

Coldwell Banker Property business networks are in 50 countries with 98.000 real estate agents at 3.600 offices. Coldwell Banker Commercial has 220 companies and more than 3.400 employees worldwide.

Coldwell Banker has been in Indonesia since more than ten years as the representative for both CBP® and CBC®.

“The condominium market in Jakarta continued to improve with demand generator, particularly from the middle low market segment.”

Coldwell Banker Commercial is a solution to the research and consulting services, investment, valuation, project concept development, marketing, leasing, auctions, property management and construction for various sectors of property.

Coldwell Banker Property aims to provide purchasing services and various property investment such as residential and land properties, landed residential and apartment on secondary and primary markets. CBP in this case also provides propert business opportunities for companies and individuals who want to have achievements in the real estate.

For further information, please contact: Tommy Bastamy, Senior Vice President - Research & Consultancy at 0818 0890 4700 Dwi Novita Yeni, Vice President - Research & Consultancy at 0815 9538 731 Dini Priadi, Vice President - Marketing Communications & Franchise at 0811 88 1165 / 088 1165 1872 Phone +62 21 255 39 388 / Fax +62 21 255 39 399 Website: www.coldwellbanker.co.id E-mail: tommybastamy@coldwellbanker.co.id dnovita@coldwellbanker.co.id dpriadi@coldwellbanker.co.id

The President Post

www.thepresidentpost.com

May 20, 2011 B5

Economic Highlights “Very little reason for currency to revert to above 9,000 level”

By Anton Gunawan & Anton Hendranatta

W

e highlight two key trends from the 1Q11 balance of payments (BOP) data that was published last week. Firstly although the current account actually widened compared to 4Q10, we still believe it is on a deteriorating trend—with much still hinging on non-oil commodity exports / prices. But secondly,on a more positive note, the capital account may see a continued structuralimprovement amid rapid growth in FDI inflows.

In 1Q11, the merchandise trade surplus eased slightly compared to 4Q10. Worth highlighting here is the oil and gas trade surplus, which has seen a continued deterioration over the past year. This is not just linked to the rising trend in oil prices but also to a likely rise in volumes—amid an acceleration of domestic fuel consumption.

With the government adamant on maintaining fuel subsidies despite oil production being consistently below target, the oil and gas trade balance could eventually slip into deficit territory in the quarters to come.

In the services trade and income balances, freight costs paid to foreign shipping companies were up 50% compared to a year ago, amid a 30% increase in foreign trade values and rising oil prices.

(We prefer comparisons with 1Q10 as opposed to 4Q10 to avoid seasonal noises e.g. hajj-related travels).

Meanwhile, the repatriation of investment income belonging to non-residents remains on a rising trend amid strong FDI inflows and a growing portion of non-resident ownership in the bond market.

With these negative trends still likely to persist going forward, the current account surplus will continue to deteriorate gradually, with much hinging on movements in the non-oil and gas trade balance (which in turn is affected by non-oil commodity price fluctuations). This remains a vulnerable point for the current account, although we do acknowledge that manufacturing export growth has started to improve, e.g. in textile and steel products.

In spite of the expected deterioration of the current account, we are relatively sanguine over the continued improvements seen in the capital account. Not only have the capital inflows been strong in size; but the composition of the inflows has been changing as well— for the better.

FDI inflows into Indonesia remains on an upward trend and we view this favorably in the context of strengthening Indonesia’s BOP structure; i.e. as eventually FDI could become the more sizable inflow relative to the fastmoving(“hot-money”) portfolio inflows.

Also worth highlighting is the rise in foreign loan draw-downs by onshore companies, as seen in the ‘other investment’ breakdown. This could also be a continued source of capital inflow going forward, especially as BI has been explicitly favoring a stronger exchange rate.

Many foreign loans has traditionally been from affiliated companies (which means low roll-over risk), but on a more cautious note, we should be watchful if firms eventually start tolerating currency mismatches in the comfort of BI’s grip on the exchange rate.

Such a trend could backfire if for some reason the rupiah weakens dramatically.

Indonesia Balance Of Payments (US$mn) 1Q10

3Q10

4Q10

1Q11

1,938

1,412

1,208

1,096

1,926

Merchandise

6,954

6,848

7,593

9,232

8,404

Exports

35,088

37,444

39,712

45,830

45,701

Imports

(28,134)

(30,596)

(32,119)

(36,597)

(37,297)

5,812

5,881

6,605

9,097

8,317

(1,663)

(2,140)

(1,991)

(2,859)

(3,408)

Non oil and gas, net Oil, net Gas, net

2,805

3,107

2,980

2,994

3,495

Services, net

(2,105)

(2,274)

(2,154)

(2,787)

(2,183)

Income, net

(3,993)

(4,262)

(5,385)

(6,652)

(5,365)

1,081

1,100

1,153

1,303

1,070

Financial account

5,572

3,695

7,294

9,524

6,220

Direct Investment

2,484

2,298

1,617

4,241

2,956

Overseas

(427)

(982)

(1,191)

(64)

(1,539)

In Indonesia

2,911

3,280

2,808

4,305

4,495

Current Transfers, net Capital account

Portfolio Investment Other Investment Total Overall BOP Foreign Reserves

6,159

1,089

4,517

1,437

3,561

(3,072)

308

1,160

3,846

(296)

7,528

5,108

8,506

10,646

8,147

6,621

5,421

6,955

11,289

7,666

71,823

76,321

86,551

96,207

105,709

Source: Bank Indonesia

Chart 1. Indonesia oil and gas trade balance

Prepared by: Anton Gunawan Chief Economist anton.gunawan@danamon.co.id Anton Hendranatta Statistician Anton.hendranatta@danamon. co.id Danamon Economic & Market Research

Indonesia: Selected Economic Indicators

2008

2009

2010

National Accounts Real GDP (% y-o-y)

6.0

4.6

6.1

6.4

6.7

Domestic demand ex. inventory (% y-o-y)

7.5

5.4

5.2

7.6

8.6

Real Consumption: Private (% y-o-y)

5.3

4.9

4.6

5.4

5.4

Real Gross Fixed Capital Formation (% y-o-y)

11.7

3.3

8.5

11.7

13.1

GDP (US$bn) — nominal

508

542

707

809

933

2,221

2,343

2,976

3,818

4,662

8.6

7.9

7.1

6.9

6.6

Exports, fob (% y-o-y, US$ bn)

18.3

-14.3

32.2

13.0

17.3

Imports, fob (% y-o-y, US$ bn)

36.9

-23.3

42.0

15.8

22.1

Trade balance (US$ bn)

22.9

30.1

31.1

31.6

29.9

Current account (% of GDP)

0.0

1.9

0.9

0.2

-0.2

Central government debt (% of GDP)

33

28

26

24

22

51.6

66.1

96.2

116.1

127.0

4.0

6.5

7.1

7.2

7.0

Currency/US$ (Year-end)

10,950

9,403

8,991

8,700

8,950

Currency/US$ (Average)

9,767

10,356

9,074

8,786

8,825

9.25

6.50

6.50

7.00

7.00

Consumer prices (% year end)

11.06

2.78

6.96

5.90

6.70

Fiscal balance (% of GDP; FY)

-1.0

-1.6

-0.6

-1.2

-1.0

S&P's Rating -FCY

BB-

BB-

BB

BB+

BBB-

GDP per capita (US$) — nominal Open Unemployment Rate (%) External Sector

International Reserves –IRFCL (US$ bn) Merchandise import cover (months)

Other BI policy rate (% year end)

Source: CEIC, *Danamon Estimates

Source: Bank Indonesia, CEIC

Chart 1. Indonesia oil and gas trade balance EXECUTIVE CENTER FOR GLOBAL LEADERSHIP

ADVANCED LEADERSHIP PROGRAM Dr. Tanri Abeng, Chairman, ECGL

Prof. Dr. George Yip Dean, RSM Erasmus Univ.

With a unique strategic direction and renewed perspectives to generate powerful impacts to leadership performance required the most by your organization, we urge you to participate in our Advanced Leadership Program 2011. Check the list below and secure your seat – class sizes are strictly limited.

Source: Bank Indonesia, CEIC

Chart 1. Indonesia oil and gas trade balance

Transforming Vision into Action (Dr. Tanri Abeng, MBA.), 11-13 May 2011, Jakarta This module elaborates genuine insights, realistic concepts and proven methods that effectively translate organizational values into corporate strategy through novel leadership practices.

International Capital Market & Corporate Globalization (Prof. Dr. Jaap Spronk), 25-27 May 2011, Jakarta If you are looking for a non-mathematical and accessible bird eye’s view of the financial system and its interrelationships with corporate system, this is the module that proves the most valuable

Good Governance and Corporate Transformation (Prof. Dr. Stefan Peij), 8-10 June 2011, Bali A “Nine Box Model” and an “In Control Analysis” are introduced as practical tools that serves as “a course map” of complete oversight and understanding of the GCG principles

Leading for Transformational Performance (Dr. Tan Jing Hee), 22-24 June, Jakarta Source: Bank Indonesia, CEIC

This module delineates a transformational leadership model facilitating analyses of organizational culture and encouraging competency development through creativity and innovation.

Chart 1. Indonesia oil and gas trade balance

Leading change: Wisdom and Courage (Prof. Dr. James O’Toole), 6-8 July 2011, Jakarta The participants will be educated to examine the essential elements of leadership, belief systems and structures that impede or accelerate change, and to create their own practical “guidebook” for leading change.

Transformational Strategy for Global Competition (Ian Buchanan, MBA.), 20-22 July 2011, Jakarta Its presentations and interactive case studies are to build understanding of the fundamental forces driving global and regional economic and geopolitical environment for transformation toward global competition.

High Impact Leadership for Transformational Culture (Patrick Lybaert, MSc), 7-9 Sept. 2011, Bali Developing the leader in you, increasing capacity to get things done, establishing self-awareness, discovering authentic leadership, and nurturing “social capital” are among the crucial things discussed in the class.

Issues on Transformations in Indonesia (Prof. Dr. Dorodjatun Kuntjoro-Jakti), 21-23 Sept. 2011, Jakarta Source: Danamon estimates; RBER: Real Bilateral Exchange Rate; NBER: Nominal Bilateral Exchange Rate

Chart 1. Indonesia oil and gas trade balance

Policy and Market Implications The gradual pace of current account deterioration and expected structural improvement in the capital account warrants a revision to our exchange rate forecasts. Furthermore, despite the recent strengthening of the IDR/ USD, we haven’t seen a significant toll yet on Indonesia’s overall foreign trade numbers. Exports of manufactured products still managed to grow 32% y-o-y in 1Q11 (relatively stable vs. the previous quarter). And the strong rise in imports of consumption goods, which has sparked some concern,

2Q10

Current account

turns out to have been due to a rise in imports of refined oil products (amid rising oil prices).

However, there is a caveat, in that while the IDR has experienced a modest strengthening on a trade-weighted basis over the past year (1.8%), the real appreciation against the Chinese Yuan has been relatively strong (4.1%).

This may not look good for Indonesia’s bilateral trade deficit with China, which has been a publicly debated issue in recent months.

After nearly doubling in 2010 (vs.

2009), the bilateral trade deficit has widened 60% year to date and could worsen further if for some reason commodity exports fall due to unfavorable movements in commodity prices.

We think this is one issue that policymakers will keep a close eye on. Generally, although we believe the recent appreciation towards Rp8,500/US$ may have been accompanied by some overshooting, we now see very little reason to expect the currency to revert back to above the 9,000 level. We are revising down our YE11 exchange rate forecast to Rp8,700/US$, from previously 9,150.

This module systematically discusses economic, business, social and political facts in Indonesia to generate participants awareness and understanding on the country development in progress.

Operational Excellence for Business Transformation (Prof. Dr. Steef vd Velde), 5-7 October 2011, Jakarta Introducing concepts and techniques in designing, planning and controlling, as well as improvement of operating system that can reliably support strategy and business transformation.

Leading Transformation in the Digital Economy (Prof. Dr. Eric van Heck), 19-21 October 2011, Jakarta Elaborating the interplay between business side and IT side of the firm to especially analyze the current and future enterprise architecture and operating model of the firm.

Transformational Management for Competitive Growth (Dr. Martiin Rademakers), 2-4 Nov. 2011, Bali This module focuses on managing dilemmas and tensions in pursuing a successful future of your company.

For further information and registration, please contact:

ECGL, Menara Karya, 27th Floor, Jl. HR. Rasuna Said, Blok X-5, Kav.1-2, Jakarta-12950.

Tel. (021) 576.2834 / 576.1168, fax. (021) 576.2132, email: info@ecgl.co.id , with Ayu or Tien.

Source: Bank Indonesia, CEIC

The President Post

B6 May 20, 2011

www.thepresidentpost.com

Technology Imagine Cup 2011

“Gatot Kaca” will Compete in New York Imagine Cup 2011 is an annual technology innovation competition initiated by Microsoft which started in 2003. This year, team Gatot Kaca from the Institute of Technology Telkom and the Institute of Technology Bandung (ITB) were the winners and will represent Indonesia in International Imagine Cup 2011 in New York, USA.

By Filly Sumayku

M

icrosoft supports the young generation to implement their imagination, passion, and creativity in creating innovations that may bring positive changes to the world. This year’s theme is “Imagine A World Where Technology Helps Solve Toughest Problems”, which produced advance but simple solutions to be applied, to answer the challenges of Millennium Development Goals (MDGs).

“The success of our youth and students to compete in Imagine Cup 2011 is proof that our young generation has tremendous potential,” said Muhammad Nuh , the Minister of Education RI. CEO of Microsoft Indonesia Sutanto Hartono stated, “We believe the innovations created by the winner do not lag behind in quality from those presented by other participants from around the world. We also believe, through Imagine Cup 2011, the creativity of Indonesian young innovators will be known widely in the world.

It underlines the concern and commitment of Microsoft to realizing an Indonesian society based on science.”

The first winner, Gatot Kaca, presented the “Childhood Project”, a solution for malnutrition problems by providing access to information and early malnutrition detection to the public through mobile phone applications. The team is using Microsoft Visual Studio 2010, Microsoft SQL Server 2008, Windows Server 2008, Microsoft Silverlight, Microsoft Expression, Microsoft NET 4.0 SDK, Windows 7 Series, Bing, ASP.net Ajax, Orchard, and Windows Phone.

“Childhood” can be applied on various kinds of smartphone operating systems but will be more optimal if applied to the Windows Phone 7.

“All smartphones can be used for Childhood applications, even those made in China,” said Kania Audrint, one of the Gatot Kaca team members.

The four members of Gatot Kaca are: Dodi Qori Utama (Biomedical Engineering), Arganka Yahya (Informatic Engineer-

ing), Kania Audriant (Informatic Engineering), and Anggunmeka Luhur Prasasti (Telecommunication Engineering).

from the University of Gajah Mada Yogyakarta with Agrion Project (a solution that is able to measure the needs of water on plants).

Team Eqlipse from IT Telkom was on 2nd place with Corona Project (Cardiovascular Remote Monitoring and Assessment). On 3rd place is Team Gadjah Mada

The last finalist is team DreamBender from IT Telkom Bandung with Ecomarket Project (a receiving system of shopping receipt based on Cloud Computing).

The four finalists beat other participants with 45 proposals based on 9 categories of competitions, which are: Software Design, Embedded Development, Game Design, Digital Media, Windows Phone 7, Interoperability Challenge, Windows 7 Touch Challenge, IT Challenge, Orchard Challenge, and Leaderboards.

CEO of Microsoft Indonesia Sutanto Hartono stated, “We believe the innovations created by the winner do not lag behind in quality from those presented by other participants from around the world.

We also believe, through Imagine Cup 2011, the creativity of Indonesian young innovators will be known widely in the world.

www.thepresidentpost.com

The President Post

Photo Essay According to studies by the Vienna-based International Atomic Energy Agency (IAEA), the best equipped human resources in Southeast Asia are in Indonesia, which it said is quite ready and able to develop nuclear power plant.

NUCLEAR INDONESIA Text & Photos by Nandi Nanti

The issue of nuclear power plant (NPP) remains controversial. Until now, Indonesia has not managed to build a NPP although nuclear energy is growing rapidly in the world and produces about 16% of world electricity. It shows that nuclear energy is a source of potential energy, high-tech, economical, and an alternative energy that is certainly worth to be considered in Indonesiaâ&#x20AC;&#x2122;s long-term energy plan to support sustainable development.

Energy needs in Indonesia are projected to increase 3.4% per year and will reach approximately 8146 peta joules (PJ) in 2025.

The amount is double compared with the final energy demand in 2000. The largest type of energy demand growth is the power plant that will reach more than treble of original demand, which is about 29 GWe in 2000 to 100 GWe in 2025.

75% of this amount is needed on Jawa-Madura-Bali.

According to studies by the Vienna-based International Atomic Energy Agency (IAEA), the best equipped human resources in Southeast Asia are in Indonesia, which it said is quite ready and able to develop nuclear power plant.

The photographs were taken in the area of the Indonesian nuclear energy agency (BATAN) in Puspitek, South Tangerang, Banten.

May 20, 2011 B7

The President Post

B8 May 20, 2011

www.thepresidentpost.com

Executive Highlights The Indonesian economy expanded by 6.5% Y-o-Y in Q1, driven by consumption and investment. Household consumption, which constitutes nearly twothirds of economy, grew by 4.5% y-o-y in the first quarter. Investments saw a 7.3% y-o-y increase for the period, government spending 3% y-o-y and exports 12.3% y-o-y. Imports, meanwhile, grew by 15.6% y-o-y in Q1. On a sectoral basis, economic growth was led by transportation and communications at 13.8%, followed by trade, hotels and restaurants at 7.9%, financial, real estate and corporate services at 7.3%, other services at 7% and construction at 5%. The pace of growth in Q1 slowed from Q4 2010, which hit a six-year high of 6.9%. The quarter-on-quarter decline was largely attributed to 46.6% drop in government spending. The Indonesian government spends a significant portion of its budget in the last quarter of each year and 2010 was no exception. Finance minister Agus Martowardojo said the economy was on its strongest footing in a decade from strong domestic demand and favorable global economic conditions. With 6.5% growth in Q1, most analysts see the Indonesian economy on track to reach the government’s full year forecast of 6.4% growth.

Analysts say the slower pace of Q1 growth compared to the previous quarter could also lead Bank Indonesia to hold rates despite concerns over inflation, although it is slowing too.

China is extending more than US$10 billion in financing to support Indonesia’s infrastructure development.

The deals come following Chinese Premier Wen Jiabao’s recent visit to Jakarta. The deal includes US$1 billion in preferential buyers’ credit – the largest China has provided for a foreign country – together with US$8 billion in financing contracts for Chinese companies investing in Indonesian infrastructure and largescale industrial projects. The financing will reportedly be led by the Export-Import Bank of China, the Industrial and Commercial Bank of China (ICBC) and sovereign wealth fund China Investment Corp. Several investment projects were also signed during Wen’s recent visit, including a US$350 million cement facility in Grobogan, Central Java that will be built by China’s largest cement producer, China Triumph International Engineering Co. Ltd (CTIEC). Chinese heavy equipment producer Sanya Heavy Industry also signed an agreement to build a US$200 million production facility in Cikarang, West Java. During the Chinese premier’s visit, President Yudhoyono called on more Chinese firms facing cost pressures at home to shift production to Indonesia.

The National Investment Board BKPM said it has issued permits to 51 firms for projects worth around US$5.7 billion for the first four months of 2011.

According to BKPM deputy chairman Teuku Otman Rasyid, around US$4.3 billion of this was from foreign investors. He said the largest single FDI project to which BKPM has issued a permit was a US$960 million edible oil production plant in East Java, though he declined to provide further details. Other major FDI projects that have received BKPM approval include a US$490 million fruit and preservation plant in Banten and a plantation complex in Papua worth US$425 million. Teuku said most of these projects would be realized over the next several years. He said there were also 13 foreign firms with investments totaling US$2.2 billion that BKPM was currently processing applications for. These companies are planning investments in crop estates, food processing and basic

chemicals in regions ranging from Sumatra to East Nusa Tenggara.

The government raised US$2.5 billion in a 10-year, dollardenominated global bond deal.

The amount was higher than the US$1.5 billion initially planned.

The issue was nearly three times oversubscribed, highlighting investor appetite for high yielding emerging market bonds. The Indonesian debt was sold at a yield premium of 175 basis points over U.S. treasuries. This compares to a spread of 228 basis points over U.S. treasuries in the government’s previous, 10-year dollardenominated global bond issue in January 2010. The narrowing of the spread with U.S. treasuries underscored investor confidence in Indonesia’s economic fundamentals and expectations of a sovereign rating upgrade in the next 12-18 months. In the latest deal, 49% of the debt was sold to U.S. investors, with Asian investors purchasing 29% of the bonds and European investor 22%. Deutsche Bank, JPMorgan Chase, UBS and local firms Danareksa Sekuritas and Mandiri Sekuritas helped manage the deal. The Indonesian government is also slated to issue global Islamic bonds in the second half of the year.

The U.S. Overseas Private Investment Corporation (OPIC) held its southeast asia investment summit in Jakarta earlier this month.

The event was launched by President Yudhoyono. It comes following an investment agreement signed between OPIC and the Indonesian government in April last year that aimed to expand OPIC project financing and political risk insurance for U.S. companies investing in Indonesia. OPIC president Elizabeth Littlefield said the summit aimed to facilitate new U.S. investment in Indonesia and Southeast Asia with particular emphasis on infrastructure, renewable energy, information and communication technologies and tourism. Many of the top U.S. corporations attended the event.

Stuart Dean, head of GE’s Southeast Asian operations, was quoted in the press highlighting the huge opportunities in infrastructure given Indonesia’s fast growth, large population and desire to develop. Uday Mathkar, Oracle’s managing director for Indonesia, pointed to the telecommunications and financial services sectors as two long-term growth markets in Indonesia that technology companies could exploit. Participants also commented on the obstacles that have been hampering foreign investors, with some highlighting land acquisition as one of Indonesia’s biggest challenges for infrastructure investment.

nar Mas Group will retain a 50% stake in Sinarmas Life following the deal with Mitsui Sumitomo.

ing infrastructure necessary to enable the block to reach its peak production, which analysts estimate could reach 165,000 bpd of oil. The Cepu block is 45% owned

by ExxonMobil, 45% by Pertamina, with the remaining 10% stake held by the local governments in Cepu.

Exxonmobil has awarded construction and engineering contracts worth more than US$800 million to South Korea’s Samsung and Italy’s Saipem

The government has appointed Pertamina to take over as operator of the West Madura offshore block as part of a 20-year contract extension.

to help develop the Cepu block in East Java. Samsung, which leads a consortium that includes local engineering firm Tripatra Engineering, was awarded a US$750 million contract to build supporting facilities including storage tanks and a compressor unit.

Saipem, meanwhile, was awarded a US$114 million contract to build a pipeline linking the Banyu Urip field in the Cepu block to the northern coast of East Java, as well as a mooring facility. Cepu currently produces around 18,500 barrels per day (bpd) of oil. The latest engineering contracts are part of efforts to provide the support-

The appointment comes following the withdrawal of China National Oil Offshore Co. (CNOOC) from the deal. Under the contract extension, Pertamina will own an 80% stake in the lock, with the remaining 20% owned by South Korea’s Kodeco Energy. CNOOC, which had a 12.5% stake prior to the contract extension, had previously sought a larger share in the block. The West Madura block currently produces 16,000 bar-

Selected Instant Indicators GDP GROWTH (%)

%

Index* 2000=100

By Quarter

Year on Year 8

175

7

165

6

155

5

145

4

135

3

125

2

115

1

105

0

95 07 06

Q1

09 08

Q3 Q1 Q2

10

Q4

Q3

Q3

Q2

2007

2008

2006

Index

Q1

Q2 Q4

Q1

Q4

Q3 Q2

Q1

Q4

2009

Q1

Q3 Q2

Q4 2011

2010

INFLATION 66 CITIES

109 107.2

General

106.2

Food WPI

106

105.5 103

100

97 Apr 10

M

Jun

J

Aug

S

O

Nov

Jan 11

D

2010

F

M

Apr

2011

EXPORT AND IMPORTS (US$ Million) Exports

16,000

Imports

14,000 12,000 10,000

Japanese insurer Mitsui Sumitomo Insurance has acquired a 50% stake in leading life insurer Sinarmas Life from the Sinar Mas Group in a US$825 million deal. The acquisition is part of Mitsui Sumitomo’s efforts to diversify operations in Asian emerging markets. The Japanese insurer said Indonesia was an attractive market given its large population and low penetration for life insurance policies.

Indonesia’s ratio of life insurance premium income to GDP is currently 1-2%, compared to 7.8% for Japan. Mitsui Sumitomo said with Indonesia’s stable economic growth the domestic insurance market would likely expand rapidly as increasingly affluent households seek insurance products.

Sinarmas Life is among the top three life insurers in Indonesia in terms of premium income and asset growth. The company has assets estimated at more than Rp10 trillion and policy holders totaling more than 500,000. The Si-

8,000 6,000 4,000 2,000 0

Mar 10

A

M

Jun

J

Aug

S

O

N

2010

Dec Jan 11

F

Mar

2011

*Q4 2000=100

COMMODITY PRICES

Sumatran Light US$/barrel 113

$ 112.41

Mal$ per metric ton 4,250

Crude Oil-LHS

108

4,000

Palm Oil-RHS

103

3,750

98

3,500

93 88

3,250 M$ 3,370

$86.15

3,000 83 2,750

78

2,500

73 M$ 2,557 68 Apr 10

2,250 M

Jun

J

Aug 2010

S

O

N

D

Jan 11

F

Mar Apr 2011

rels per day (bpd) of oil and 187 million standard cubic feet per day (mmscfd) of natural gas. Pertamina has stated it plans to invest up to US$1 billion to boost production in West Madura to more than 40,000 bpd of oil and more than 200 mmscfd of natural gas by 2015. Analysts say the West Madura contract extension underscores the difficulties facing foreign contractors in securing larger ownership in Indonesia’s natural resources sector.

Coal producer Berau Coal has signed contracts to supply three million tons of coal per year to two Chinese firms.

Financial details were not disclosed. Berau executive Bob Kamandanu said the firm would supply 1.5 million tons of coal per year to Huaneng Power over a fiveyear period, and 1.5 million tons of coal per year to Zhusui over a three-year period.

Huaneng Power is China’s largest electricity producer, while Zhusui is a major coal trader. Kamandanu said the deal was significant because it reflected increased efforts by Chinese buyers to secure longer-term contracts in face of growing global demand. He said normally Chinese buyers would rely on shortterm contracts of less than a year to secure coal supplies. Berau Coal, recently acquired by U.K.based investment firm Vallar, is Indonesia’s fifth-largest coal producer. The firm is projected to raise its coal output by 20% to more than 20 million tons this year. Around 25% of this output is slated for China.

Automotive financier Indomobil Finance has appointed four underwriters to manage its Rp700 billion bond issue.

The underwriters are Indo Premier Securities, CIMB Securities Indonesia, Kresna Graha Sekurindo and Nikko Securities Indonesia. The yields on the bonds have an indicative range of 7-11% and tenors of 1-4 years. The debt has been assigned an idA rating with a stable outlook from local ratings agency Pefindo. Indomobil Finance president director Jusak Kertowidjojo said proceeds from the bonds, which are scheduled for listing on the Indonesian Stock Exchange (IDX) early next month, would be used to support the firm’s expansion. The company projects new financing to reach Rp3.5 trillion this year, up nearly 50% from the Rp2.4 trillion of financing posted in 2010. Jusak

said the firm would also be looking to secure bank loans to support its financing. Indomobil Finance currently works with more than 2,000 dealers in 210 outlets across the country to support its financing activities.

Bank Negara Indonesia (BNI) is divesting a 25% stake in its subsidiary BNI Securities to Japan’s SBI Securities.

BNI president director Gatot M. Suwondo said the deal, worth an estimated Rp114 billion, represented a strategic partnership with SBI Securities to support BNI Securities’ expansion. As a major player in Japan’s retail and online stock trading market, Gatot said SBI Securities would be able to provide the technological expertise to support BNI Securities’ push into the rapidly expanding online trading market in Indonesia. He said the deal would also enable BNI Securities clients to trade in Japanese equities using SBI Securities’ online platform.

BNI Securities currently manages around 34,000 conventional accounts and 13,000 online trading accounts. Its brokerage unit reported an average Rp230 billion in daily stock trading transactions in Q1, up 20% from an average of Rp177 billion per day in 2010. The company is projecting total revenues to rise 30% this year to Rp184 billion.

Nielsen Company Indonesia said advertisement spending increased by 20% Y-o-Y in Q1 to Rp15.6 trillion.

A number of industries saw a significant increase in advertisement spending, including children’s milk with nearly 100% growth in ad spending to Rp485 billion, automobiles with 80% growth to Rp274 bullion and motorcycles with 49% growth to Rp372 billion. Nielsen said this trend reflected Indonesia’s domestic consumption-led economic growth and growing affluence of the country’s middle class. Telecommunications firms spent the most for advertisements at Rp1.2 trillion in Q1, though this was down seven percent from the same period a year earlier and reflected the industry’s relatively saturated market. Television broadcasters continued to dominate the advertisement space with a 62% share of ad revenue, followed by newspapers with a 35% share and magazines and tabloids with a 3% share.

Business Highlights are contributed to The President Post

by CASTLEASIA/ PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program.

They are reprinted here with permission.

For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@ castleasia.com subject CEO Forum

SECTION

The President Post

Living k s i r w Lo

Religious Belief is Human Nature, Huge New Study Claims

RETIREMENT TIPS

(CNN) – Religion comes naturally, even instinctively, to human beings, a massive new study of cultures all around the world suggests.

“We tend to see purpose in the world,” Oxford University professor Roger Trigg said Thursday.

“We see agency. We think that something is there even if you can’t see it. ... All this tends to build up to a religious way of thinking.”

Trigg is co-director of the three-year Oxford-based project, which incorporated more than 40 different studies by dozens of researchers looking at countries from China to Poland and the United States to Micronesia.

O

ne thing you may not want to take a chance on is the possibility of falling below at least a minimum standard of living. Or to put it another way, you may want to take extra care that you’ll have at least enough income to meet your basic living needs the rest of your life.

(Money) – We all have to take some chances in life, but I agree: It’s important that you understand the risks you face and decide how to manage them in an acceptable way.

You’re no doubt familiar with one facet of investing risk – the chance that a stock-market meltdown could wipe out a big chunk of your savings, and future income. Limiting your stock holdings and increasing your stake in bonds and cash will protect you from that risk.

But the lower returns on bonds and cash will also increase your exposure to another risk: that you won’t be able to maintain your purchasing power throughout retirement and that you’ll run through your savings too soon.

The way to balance those two risks is to build a portfolio that includes enough bonds to provide ballast against market setbacks and enough stocks to provide at least some growth potential. The right blend will depend a variety of factors: your age, stomach for risk, the size of your portfolio and what other resources you may

Studies around the world came up with similar findings, including widespread belief in some kind of afterlife and an instinctive tendency to suggest that natural phenomena happen for a purpose.

“Children in particular found it very easy to think in religious ways,” such as believing in God’s omniscience, said Trigg. But adults also jumped first for explanations that implied an unseen agent at work in the world, the study found. The study doesn’t say anything about whether God, gods or an afterlife exist, said Justin Barrett, the project’s other co-director.

“This project does not set out to prove God or gods exist.

Just because we find it easier to think in a particular way does not mean that it is true in fact,” he said.

have to fall back on (home equity, a pension, etc).

But starting somewhere between 35% and 50% in stocks at 65 and gradually reducing your stock holdings so that you’re at, say, 25% to 35% stocks by age 75 and 20% to 30% in your 80s is a reasonable guideline.

If you’d like to see how different combos of stocks and bonds have fared in the past, you can check out this historical returns calculator. For a look at how different mixes might (emphasis on might) do in the future, rev up Morningstar’s Asset Allocator tool. But when it comes to creating retirement income, investing risk doesn’t exist in a vacuum. It’s inextricably entwined with spending risk.

You’re no doubt aware of one aspect of spending risk, namely, the peril of spending too much too soon and depleting savings. What might surprise you, though, is how much that risk can increase the more you spend. For example, if you have $500,000 in a 50-50 mix of stocks and bonds and withdraw $20,000 (4% of $500,000)

Don’t Check Your Emotions at the Workplace Door (CNN) – Go ahead and have a good cry at work.

You might want to get emotional behind closed doors, but research finds it won’t hurt your chances of getting ahead.

C

Display until June 19, 2011 /// N0. 24 www.thepresidentpost.com

Anne Kreamer’s new book, “It’s Always Personal: Emotion in the New Workplace,” explores the emotional dynamics at play in a world where the line between work and home is becoming virtually indistinguishable.

The former worldwide creative director of Nickelodeon and Nick at Nite interviewed more than 200 working Americans to get a sense of what’s going on in their heads and how that spectrum of emotion manifests itself in the office.

Both atheists and religious people could use the study to argue their sides, Trigg told CNN. Famed secularist Richard “Dawkins would accept our findings and say we’ve got to grow out of it,” Trigg argued.

But people of faith could argue that the universality of religious sentiment serves God’s purpose, the philosophy professor said.

“Religious people would say, ‘If there is a God, then ... he would have given us inclinations to look for him,’” Trigg said. www.dyingrich.blogspot.com

the first year of retirement and increase that amount by inflation each year, there’s a roughly 80% chance your savings will last 30 years. Boost that initial draw to $30,000 (6% of $500,000) and the odds drop to about 25%.

However, there’s a whole other dimension to spending risk that sometimes gets lost. That’s the risk of spending too little. That may not seem like a risk at all. But

if you’re overly cautious about pulling money from savings early in retirement and the financial markets deliver good returns, you could end up with a big pile of savings late in retirement. Which would mean that you could have loosened your purse strings more early on and enjoyed yourself more in retirement.

Finally, one thing you may not

want to take a chance on is the possibility of falling below at least a minimum standard of living. Or to put it another way, you may want to take extra care that you’ll have at least enough income to meet your basic living needs the rest of your life.

Bottom line: Don’t be afraid to take chances. That’s unavoidable.

But do make sure you’re taking them the right way.

She recently spoke to CNN.com and here is an edited transcript:

CNN: What are the biggest differences between men and women?

Kreamer: The two biggest areas of difference between men and women and the expression of emotion in the workplace center around anger and crying.

Women reported that they feel anger at work slightly more than men – 51% versus 42%. But young men (42%) versus (23%) of women believe that anger is an effective management tool.

When it comes to crying, 41% of women reported that they had cried during the past year versus 9% of men.

the field and it is clear that when negative emotions – anger, fear, anxiety – are suppressed they have a tendency to erupt more powerfully and explosively in more injurious ways.

If you bury your emotions, refusing to think about them you avoid addressing the underlying causes and limit your ability to move forward.

CNN: Was there anything that surprised you while you were writing this book?

Anne Kreamer: People at upper levels of management, both men and women, reported they had cried at work. The common assumption is that people who cry can’t get ahead so it was profoundly liberating to me to hear that people who showed emotion at work were viewed as speaking from the heart and it didn’t affect their ability to rise through senior management ranks.

Most people seem to realize that crying is nature’s emotional reset button. It was interesting that men reported that after they cried at work they felt refreshed, that they could see the world through clear eyes, but women felt ashamed.

CNN: Why is it important to not suppress your emotions at work?

Kreamer: I talked with multiple neuroscientists and reviewed much of the current research in

CNN: Is the book intended for men or women?

Kreamer: The book is intended for everyone. As I say in the book, men are from Mars and women are from Venus, but we all live on planet Earth. What I hope to achieve from blending interviews with 200 people in different fields with statistical analysis and research on neuroscience is to offer a roadmap for how men think about women, how women think

The blockbuster study may not take a stance on the existence of God, but it has profound implications for religious freedom, Trigg contends.

“If you’ve got something so deep-rooted in human nature, thwarting it is in some sense not enabling humans to fulfill their basic interests,” Trigg said.

“There is quite a drive to think that religion is private,” he said, arguing that such a belief is wrong. “It isn’t just a quirky interest of a few, it’s basic human nature.”

“This shows that it’s much more universal, prevalent, and deep-rooted. It’s got to be reckoned with. You can’t just pretend it isn’t there,” he said.

And the Oxford study, known as the Cognition, Religion and Theology Project, strongly implies that religion will not wither away, he said.

“The secularization thesis of the 1960s - I think that was hopeless,” Trigg concluded.

about men and how we think about ourselves individually.

CNN: Do you think it’s possible to fully remove emotions from the workplace?

Kreamer: I don’t think you should, nor can you, remove emotion from the workplace. We should embrace emotions, but in a world where there’s no distinction between work and home, how do we think that? I think it’s important to show humanity.

CNN: You devote one chapter to exploring the defining traits of what you call the four Workplace Emotional Evaluation Profiles (click on link to find out yours!). In your career in the media industry, have you encountered one personality more than the others?

Kreamer: Not really. Senior

management allows a greater degree of tolerance for the spouter personality, but you encounter all kinds of personalities no matter the industry.

One of the things I realized is the Beatles are a perfect model for the WEEP profile. You needed all four of them to make music and but some are more dominant or change over time.

John is clearly the spouter, the political activist who wears his heart on his sleeve.

George is a complete believer, and Ringo is the accepter who’s kind of comfortable taking the backseat but is still integral to keeping the beat. Paul is the solver who says let’s keep this show on the road and I think you’ll see a similar range of personalities in any company with more than a couple of employees.

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Living Business is Booming for Psychic Career Counselor www.harbcareer.blogspot.com

CNN) – Sue Frederick says she can see your dream job and is ready to help you find it. Unlike traditional career counselors, Frederick uses her “intuition” to help her clients.

“I’ve been called a clairvoyant and a medium because my skills fit those skills,” says Frederick.

She says she only amplifies the intuition that each of her clients already has: “You have all the answers you need inside of you and all the gifts you need to make it happen.”

What she does is much more than just gazing into a crystal ball or reading someone’s palm.

“I help people first see the big picture, then I bring it down to the concrete baby steps,” she says.

“Everyone needs to have a baby step action plan, or they are paralyzed ... so we break it down.”

Here’s how it works: Clients who are usually in some sort of job crisis, laid off or unhappy with their work, get in touch with Frederick, usually by phone, and give her their date of birth.

“If you take your date of birth and digit it down to a single number, you come up with the energy of what you have come to be in the world through your path, your work,” she says. “I help people see what that means in their life.”

Next, Frederick meditates about the client’s case and says she has visions of the right career move for her clients.

“I see images and pictures of people doing their great work in the world,” she says.

At this point, many people roll their eyes and write Frederick off – but she says a better job and a better life await those willing to make the leap.

“The first step is to understand more about your soul’s mission,” she says. “There’s always a deep-

These reinvention points, according to Frederick, come as part of nine-year cycles. She uses numerology to pinpoint where her clients are on those cycles and when it’s time to change she helps people move in a more fulfilling direction.

“The next step in everyone’s career journey is to a higher expression of their gifts and what they’ve come to do in this world,” she says. “So it becomes more meaningful work, more financially successful, more fulfilling in that they think they are bringing more of their true self to the world through their work. “ But she emphasizes that this doesn’t mean taking a vow of poverty to teach yoga or live on an ashram.

“Here’s the myth: We’re told that either we can pick work that we love and be poor and starve or we can have the job we take for benefits and security and be unhappy,” she says. “We’re told that those are our two choices, and that’s not true at all.”

Frederick, 59, made her own career change a decade ago. She says she has been aware of her psychic powers since she was a little girl but was reluctant to share them. After a career as a journalist and magazine editor, she decided to become a career counselor and use her intuition. She

has worked with thousands of clients who pay $250 for a one-hour session with her, usually over the phone. This economy means people who have been unhappy with their job ... finally get the opportunity to reinvent.

She shares a large house outside of Boulder, Colorado, with her husband and teenage kids.

Statues of the Hindu god Ganesh mingle effortlessly with baseball gear and running shoes.

Frederick – who also hosts seminars and has written a book, “I See Your Dream Job” – says she is booked six months in advance.

She says that while the current economic downturn is difficult in the short term, it is presenting people with the opportunity to change and find a better career and a better, more fulfilling life.

“This economy means people who have been unhappy with their job but just took it for the

www.eharmony.com

(The Frisky) – We love men.

In fact, we adore them. We like their bodies, their brains, and their strange way of doing things. So it’s always a tricky tightrope when you’re dealing with a guy to know when to be there for him – and when to cut and run.

Since we’re here to help the ladies, we’ve created a handy guide that will help you know when your man is just being a dude – or if you’ve got a dude on your hands who needs to be dumped.

1

2

“I can’t stop crying.”

Sure, sure, the new man is a metrosexual who is really in touch with his inner-self, does yoga, and gets waxed more than you do. But there’s a limit to how much a woman can tolerate seemingly unmanly behaviors.

Crying because there was a death in the family? Feel free.

Prone to weeping at romantic comedies? Not so much.

If your man can’t control his emotions, and you find yourself feeling like you’re the one wearing the pants in the relationship, you should ask

yourself if that’s what you want – a guy who’ll cry over spilt milk.

3

“I’m thinking about quitting my job.” There are two ways this one can go. He’s dissatisfied with his current work situation, he wants to try something else, and this statement is a prelude to telling you all about his big plans for his next career move.

That’s fine.

On the other hand, if you’re living together, and one day he declares he’s going to give two-weeks notice today, and so far as you can tell he doesn’t have any idea what he’ll be doing after that, or how he’ll be paying for his part of your shared bills, this isn’t someone who has a work issue. This is someone who has an I-want-mymommy-to-take-care-of-me issue.

4

“I need to tell you something.” This one never, ever ends well. If he has to prepare you for what he’s going to say next, you best brace yourself for what’s coming because it isn’t going to be anything good.

5

“I think we need to take a break.” Hey, guess what?

This isn’t school, and there will be no recess. Relationships

(CNN) – It’s been said that the only people who know what goes on in a marriage are the two people who are in it, and sometimes, even they’re not sure.

The news that the Arnold Schwarzenegger-Maria Shriver 25-year blissfest ran afoul of the former governor’s decade-old dalliance and subsequent child from said dalliance makes the pair likely headed toward an uncertain hell.

“This is so very, very, very common,” said Dr. Laurie Moore, a licensed marriage and family therapist from Santa Cruz, California, speaking about the number of married couples who struggle through a partner’s confessed infidelity.

Dr. Steve Solomon, a La Jolla, California, therapist and author of “Intimacy After Infidelity: How to Rebuild and Affair-Proof Your Marriage,” said the vast number of couples coming in to save their marriages after infidelity is the reason he wrote his book in the first place.

“When people marry, they have this ideal of eternal fidelity,” said Beth Hedva, a therapist and psychologist from Alberta, Canada. “A breach of that ideal can be cause for great injury, yes.”

But, Hedva said, a man or woman can love his or her spouse very much and still be capable of an affair. Such infidelity is not as uncommon as we like to pretend, she said. Its acceptability varies with cultures. Its tolerance varies in our own circle of friends.

“This is not about condemning or condoning that behavior, but what is true,” said Hedva, author of “Betrayal, Trust and Forgiveness.”

“The Monogamy Myth” author Peggy Vaughan famously reported that 60 percent of men and 40 percent of women will have an affair at some point in their marriage. Yet, according to a National Opinion Research Center study on American Sexual Behavior conducted in 2006 by the University of Chicago, researcher Tom W. Smith wrote: “There are probably more scientifically worthless ‘facts’ on extra-marital relations than on any other facet of human behavior.”

er story when people are unhappy with their job or they are afraid -it’s time for a reinvention point.”

It’s at that point, she says, that people are willing to “pull back and look at the bigger picture of their life.”

Six Things Men Say that Signal Trouble

“I don’t feel like having sex.” Sure, every man has an off day. But you know what? Most guys want to have sex all the time. And if you’re not getting it on, on a regular basis, especially because your guy is claiming that he’s just “not feeling it,” you can bet that your problems are going to turn out to be bigger than a case of the sex blues. In this particular situation, you may want to get to the root of the problem before this supposed dry spell kills your love, too.

What Happens After Infidelity

are not like a Lego set: created to be dismantled and put back together again.

“Breaks” are what guys who are too weak, scared, or lame suggest because they’re too much of a you-knowwhat to go ahead and break up with you. Make it easy for this guy. Give him a break from the relationship. A permanent one.

6

“My last girlfriend was crazy.” True, your ex probably said the same thing to his new girlfriend, but you might want to keep an eye on the man whose history includes a long string of relationships with women who are totally temperamental, out of their gourds, or recently released from the state mental hospital.

Guys who go out with lunatics think the crazy chick is the issue, but all too frequently he’s the one with the problems. Whether he craves drama, mistakes insanity for passion, or prefers to hook up with ladies who can never truly be intimate, you’re better off letting him move on to the next one – the next crazy one, that is.

benefits and the paycheck are finally getting shaken out of those jobs,” she says. “Now they finally get the opportunity to reinvent.

“Now when you laid off and can’t get a job in your old path, you finally get to go, ‘OK, maybe I can take a baby step in a new direction.’”

She says it’s all about discovering your true passion in life: “When we pick a career from our passion, from our soul’s work, then that always brings us to true abundance no matter how strange or unique or unusual that work may be.”

When we pick a career from our passion, from our soul’s work, then that always brings us to true abundance no matter how strange or unique or unusual that work may be.”

Smith was dismayed. Scientific surveys, he wrote, indicate that it’s more like 15 percent to 18 percent of married people who commit oldfashioned adultery. That may be, but everybody you talk to says nobody tells the truth on those surveys.

Solomon, who is also co-founder of The Relationship Institute in La Jolla, California, gave this advice: Don’t rush to make any big decisions, especially irreversible ones.

Don’t tell your children. Especially if they are small.

Take care of yourself. This will ensure the patience and calm you will need.

“Marriage has many obligations,” said Donna Bellafiore, a licensed clinical social worker in private practice in Delray Beach, Florida.

“Sexual fidelity is a fundamentally important part of that trust that has been broken, but the whole has been affected. Everything is questioned, then, about the marriage, if the faithfulness was not kept. What was real? Was I a fool? The impact is like a death. The grieving is like a death. Nothing was what it appeared. That is what has to be healed.”

The President Post

www.thepresidentpost.com

May 20, 2011 C3

Living Vipassana: Surviving 10 Days of Meditation In theory, a meditator would learn over time to respond with equanimity to every sensation, no matter how strong one’s cravings or aversions might be towards certain people, experiences, sensations. This ability to respond with mental calmness and an even temper, can be equated to a happier and more contented life. www.wedharma.com

By Taylor Jacobson

W

hen people speak of Vipassana, the meditation technique of the Buddha, they talk about

rules.

For 10 days, this means no talking, no reading, no writing, no music or singing, no eye contact; no killing, including mosquitoes; two light meals per day; and a daily 4 a.m. wake-up bell. For me, these rules were as carefree as a romantic Bollywood dance number, in contrast to the challenge of the meditation. I start hearing the “you have to do Vipassana” anthem during my first trip to India in 2008.

Shraddha, once a stressed ad film stylist, has turned to yoga full-time after Vipassana (she’s now been twice). It helped her sister Sejal discover her calling as a holistic natural therapist. Alpana, a corporate hotshot, came back from Vipassana in an altered state of consciousness – for four days she spoke softly, if at all.

In that first of the 100 hours I face – 10 hours per day – I confront the reality that my Western conditioning of long days at the office and La-Z-Boy chairs at home hasn’t exactly prepared my back muscles for more than 15 minutes of continuous floor-sitting.

During the first three days, the Anapana breathing technique is taught as a tool to practice subtle awareness. For me that means excruciating back pain, which I overcome only thanks to the faith that my friends had given me in the technique.

On day four, I am taught the Vipassana technique. Here, one applies the subtle focus learned through Anapana to scan the body for sensations such as pain,

stinging, heat, moisture. The goal is to maintain perfect calm and objectivity.

In theory, a meditator would learn over time to respond with equanimity to every sensation, no matter how strong one’s cravings or aversions might be towards certain people, experiences, sensations. This ability to respond with mental calmness and an even temper, can be equated to a happier and more contented life.

Minutes after I start practicing the Vipassana technique, I suddenly find my pain easing, practically vanishing entirely, to be replaced by an effervescent, tingling sensation. Though the pain returns, by day five I can sit for an hour without moving.

On day six I do two 90-minute sittings. My energy levels increase and I wake up at 3 a.m., ready to start my day. I can’t nap when I try. And, finally, I start to experi-

ence benefits outside my meditation. I access memories of people with whom I had troubled relations, and feel calm and peace for the first time. I even send out vibes of peace and love (don’t snicker), hoping they might feel better too.

When my Vipassana camp ends, I am ready to resume normal life, including sleeping until after sunrise and consuming my share of pizza and beer. The difference is in the small things. When I get cut off in the hyper-aggressive Mumbai traffic, I shrug it off; the cacophony of round-the-clock building construction fade; today, when I came home to a kitchen resembling a war zone, I still burned a little bit on the inside, but not for long. Quietly, here and there, I’ve started to sing the Vipassana anthem.

(CNN)

How Stay-at-Home Moms Become Millionaires (Mental Floss) – This week seemed like a great time to give a tip of our caps to stay-at-home moms, including these four who used clever ideas to become business moguls.

Gerber: Of course only a mother could found such a successful baby food company! In the late 1920s, Michigan mom Dorothy S. Gerber was hand-straining food for her baby daughter, Sally, when she realized there must be some way to avoid the messy task. She pointed out to her husband, Daniel, that if his family’s business, the Fremont Canning Company, could puree a tomato all day long, its equipment could probably make short work of other fruits and veggies, too.

Daniel Gerber realized his wife was on to something, and after a year of experimentation – and an extensive search to find the right drawing for their label’s now-iconic “Gerber baby” - the Gerbers introduced their first line of baby foods, a super-yummy menu of strained peas, carrots, prunes, and spinach.

Baby Einstein: When Alpharetta, Georgia mom Julie AignerClark went looking for educational materials for her newborn daughter in 1996, she found a disappointing hole in the baby market: there weren’t really any educational materials to expose babies to music and the arts.

Some parents would just accept whatever the market was offering.

Not Aigner-Clark. She shot a video for her daughter in her basement then edited it with her husband, Bill, on the family computer. She even doodled a logo for the video at her kitchen table.

Within a year, the first Baby Einstein video was in stores, and the series quickly became a runaway hit. Disney bought the company in 2001 after Baby Einstein raked in $12 million in revenue the previous year. After the sale Aigner-Clark gave an interview to The New York Times in which she sounded a little surprised by her huge windfall.

dall, soon confirmed their suspicions that people really enjoy cookies and will gladly drop a few bucks to get a warm one.

The company began a sweeping franchising program, and in the 1993 Fields sold her cookie empire to an investment firm.

“I was just a stay-at-home mom who wanted to expose my daughter to classical music, poetry, not a budding entrepreneur.”

BabyLegs: Put this one on the list of brilliant niche markets we didn’t know existed: baby legwarmers. Nicole Donnelly managed to turn that very idea into a fabulously successful company.

In April 2005 Donnelly found a new weapon in her ongoing battle with her daughter’s diaper rashes. By letting her daughter enjoy some of what they called “nakedy butt time,” the rash got some muchneeded fresh air, but the tot’s legs got cold. Donnelly combatted this chilliness by cutting up a pair of socks to make improvised baby legwarmers.

Mrs. Fields: Debbi Fields was a young stay-at-home mom when she started to feel restless in 1977.

She had always loved baking cookies, so she figured she might try her hand at opening a cookie store. The concept doesn’t sound odd now that there’s seemingly a Mrs. Fields outlet in every mall you walk into, but at the time the notion that a store would only sell cookies seemed absurd. Furthermore, Fields was only 20 years old and didn’t have any business experience.

Fields nevertheless managed to secure financing for her venture and she opened up her first cookie shop in Palo Alto, California. Fields and her husband, Ran-

Donnelly quickly realized that the legwarmers had all sorts of side benefits. They did more than just keep her daughter’s legs toasty; they also protected the baby’s legs when she crawled and made changing diapers a breeze.

Donnelly whipped up some stylish designs and began selling BabyLegs to other moms.

BabyLegs proved to be an incredibly lucrative idea. In 2008 the company moved over $4 million worth of its legwarmers worldwide, and in April 2009 United Legwear bought a majority stake in the company and began aggressively expanding the company’s reach.

I was just a stay-athome mom who wanted to expose my daughter to classical music, poetry, not a budding entrepreneur.”

Vipassana, the meditation technique of the Buddha.

Perfectionist Parents and Their Always-lacking Kids A parent’s perfectionist attitude also sets up children for a lifetime of inadequacy.

(CNN) -- The phrase “I want to be perfect” was searched 14,800 times on Google this month.

The Internet, with its slew of self-help articles and downloadable webinars, has become a beacon for the insecure who are desperate to attain perfection. Yet as our society becomes more obsessed with the idea of flawlessness, parents and their children are the most vulnerable to the perfection infection.

We read the abundant literature available on helicopter parents -- moms and dads who, often in the name of perfection, hover over their children, making sure they always do what they “should” be doing. For many parents, the feelings of inadequacy and the pursuit of flawlessness mix into a terrible combination. This creates an endless loop of new but unfulfilling accomplishments, because perfection is impossible to permanently achieve.

Shamima, 17, explains what many teenagers believe: “If we make a mistake, it will lower people’s impressions of us, and that makes us pathetic.”

A parent’s perfectionist attitude also sets up children for a lifetime of inadequacy.

Shamima adds, “Teens are always aware that other students in their school have stronger abilities than themselves. When they receive their grades, there is a heavy shadow of remorse. Inside, they think their parents are yearning for their child to

only be the best.”

Unhealthy competition is a major side effect of the parental perfection infection. Instead of being able to see friends’ accomplishments as inspirational or positive, Shamima shares that her successful friends “are like mountains that cast shadows over their meeker peers, and most teenagers are demoralized and feel as though they are worthless, useless and low in comparison.”

“Tiger mom” Amy Chua is a vocal advocate of raising children guided by unreasonably high expect a tions. In her Wall Street Journal article, Chua says, “Chinese parents demand perfect grades because they believe that their child can get them.”

Krithika Varagur, 16year-old founder of the Youth Literacy Fund, says she believes parents who reject Chua’s advice are not “dooming their kids to failure, or worse, mediocrity. You can have a relaxed lifestyle and family dynamic and achieve stellar high school success.” She also shared that after crying over an Agrade, her parents were the ones to tell her to let it go.

Most important, perfectionists cannot enjoy their success because they only think they could have been done better. This leads children to conceal mistakes in support of a perfect image. Parents with natural imperfections can teach their children to embrace mistakes and benefit from them. This means talking about and reviewing failures as much as successes, rewarding kids when they try to learn from mistakes and taking the stigma out of disappointments.Imperfection can sometimes lead to growth, relief and wonderfully imperfect kids.

The President Post

C4 May 20, 2011

www.thepresidentpost.com

Pictorial Events The 18th ASEAN Summit 2011 Taxt & Photos by Nandi Nanti Indonesia as the current chairman of ASEAN hosted the 18th ASEAN Summit 2011, with the theme “ASEAN Community in a Global Community of Nations”, held in Jakarta on 7-8 May 2011. President of the Republic of Indonesia, Susilo Bambang Yudhoyono chaired the conference.

It was attended by leaders from 10 countries: (from left) Philippine President Benigno S. Aquino III, Senior Minister of Singapore

S. Jayakumar representing Singapore Prime Minister Lee Hsien Loong, Prime Minister of Thailand Abhisit Vejjajiva, Vietnamese Prime Minister Nguyen Tan Dung, President of Indonesia Susilo Bambang Yudhoyono, Cambodia Prime Minister Hun Sen, The Sultan of Brunei Darussalam Sultan Hassanal Bolkiah, Prime Minister of Laos Thongsing Thammavong, Prime Minister of Malaysia Dato ‘Sri Mohd Najib, and President of Myanmar Thein Sein.

The 7th OPIC International Investment Conference President Susilo Bambang Yudhoyono opened the 7th OPIC International Investment Conference with the theme “Access to Opportunity in Southeast Asia”. Also speaking at the opening ceremony was U.S. Ambassador to Indonesia Scot Marcieland and OPIC President and CEO Elizabeth Littlefield.

The conference emphasized on renewable energy and clean technology sectors.

Present at the event were senior officials such as Coordinating Minister for Economic Affairs Hatta Rajasa, Minister of Industry MS Hidayat, Chairman of BKPM Gita Wirjawan, prominent national figures Sofyan Wanandi and Chris Kanter and others.

Jababeka Medical City in Joint Cooperation with Long Life Holding Co.

Ernst & Young Kartini Day

Ernst & Young in cooperation with 99.1 Delta FM held a celebration of Kartini Entrepreneurial Winning Woman themed “Women Empowerment: New Age Women” at Financial Club Jakarta.

The event was attended by women entrepreneurs such as Mooryati Soedibjo, Mien R. Uno, Prita Kemal Gani and hosted by Farhan from Delta FM.

Senior Citizen Housing of Jababeka Medical City is a special housing complex intended for senior citizens, built in cooperation with Long Life Holding Co., a senior citizen housing management company based in Japan.

MURF Entreupreneur Scholarship The Mien R Uno Foundation provides scholarships to excellent students from universities in Indonesia that have followed the program entrepreneurship program.

The President Post

www.thepresidentpost.com

May 20, 2011 C5

Palladium Strategy Execution Forum 2011 to be held in Jakarta The Palladium Strategy Execution Forum 2011 is entitled “Mastering the Strategy Management System”.

The Palladium Group is the home of the Balanced Scorecard Hall of Fame for Executing Strategy, a globally esteemed award recognizing public, private and government organisations that have excelled at implementing the Kaplan and Norton strategy execution management system and through it increased their value.

J

akarta, 29 April 2011.

Global thought leaders and international experts on strategy execution will converge at the Palladium Strategy Execution Forum 2011 in Jakarta on June 14thst at the Ritz Carlton Hotel Mega Kuningan, to discuss and share world best practices on strategy execution. They will highlight leadership capabilities required to mobilize organisations for change and the processes that assist leaders in the formulation, communication and motivation of strategy execution. They will delve into how value creation can be achieved through organisational alignment and discuss several emerging approaches to break down cross functional silos within organisation.

Leading the line up of global management thought leaders is Dr David Norton, founder and director of the Palladium Group and co-creator with Dr Robert Kaplan of the Balanced Scorecard and Matthew Tice, Managing Director, Palladium Asia Pacific. Addressing strategy execution issues for local companies will be Kresna CEO, Michael Stevens and Garuda Food CEO, Sudhamek AWS. The Palladium Strategy Execution Forum 2011 is entitled “Mastering the Strategy Management

System”. As we witness the current changes in the world economy we realize that there are corresponding implications for organisation in navigating growth and change through new strategies and of course, consequently, having the internal skills to effectively align the whole of the organisation to the new directions.

“Executives in all types of organisations, be it public, private or government, realize that having a robust strategy management system, such as the Kaplan and Norton system, gives them a solid and effective framework through which to manage and implement strategy change, in way that consistently engages the whole of organisation”, says Matthew Tice, Managing Director, Palladium Asia Pacific. Such a powerful strategy execution tool in the hands of skilled executives has proven to reap high rewards for organisations all over the world.

For example, global research shows that a staggering 80% to 90% of organisations are unable to execute the strategies they agree they should implement.

Much of this problem stems from the emergence of a new economy, where intangible assets replaced the role of tangible assets as a source of value. The Balanced Scorecard, developed by Robert Kaplan and David Norton

in the 1990s, provided a means to these intangible assets. Research now shows that organizations that use the Balanced Scorecard as a foundation for their strategy management system have a 70% chance of outperforming their peer groups. More impressively, successful strategy execution has been shown to create increases in shareholder value of 50% to 150% over a three year period.

The Palladium Group is the home of the Balanced Scorecard Hall of Fame for Executing Strategy, a globally esteemed award recognizing public, private and government organisations that have excelled at implementing the Kaplan and Norton strategy execution management system and through it increased their value.

In the Asia Pacific region, Korea, India and the Philippines excel at generating Hall of Fame winners. During the past two years, the Philippines cities of Iloilo and San Fernando have won this illustrious award and have consequently are increasingly becoming coveted destinations for local and foreign investment. They managed to increase the per capita income whilst decreasing corruption. The implementation of the Balanced Scorecard by the cities has created a transparent and common platform for busi-

nesses, citizens and government agencies to strive towards common goals and outcomes in mutual support.

Korea leads the region in terms of number of winners, via a mix of government agencies and public company winners – Korean Telecom, Busan Metropolitan City, Health Insurance Review & Assessment Services (HIRA), Korean Customs Service, Korean East West Power, KOTRA and the Ministry of Home Organisations, LGPhilips LCD Korea and E-Land, Korea’s leading fashion group. All have in common improved overall performance, increased workforce effectiveness and increased efficiency in executing strategy.

India runs second with illustrious past winners such as Hindustan Petroleum Corporation, Infosys Technologies, Tata Motors, North Delhi Power, Lakshmi Machine Works and Trent – all well known, successful organisations.

Indonesia has so far only produced one Hall of Fame winner – the SOHO group.

Palladium Balanced Scorecard Hall of Fame for Executing Strategy award submissions are currently open and applications are available from The Palladium Group web site. http://www. thepalladiumgroup.com

About the Palladium Group The Palladium Group, founded by leading management thinkers Dr. Robert Kaplan and David Norton, is the global leader in helping clients address their most challenging and pressing Strategy Execution issues by providing an integrated set of services designed to deliver tangible results and leave lasting capabilities – the Execution Premium. Palladium has offices throughout North America, Europe, the Middle East, and Asia-Pacific. With a successful track record of over 700 clients, the Palladium Group is dedicated to understanding and addressing the strategic issues unique to the Asia-Pacific region. The Palladium Group’s work with the region’s most influential organisations means Palladium Group is uniquely positioned to guide clients in each of the Group’s six focus areas, namely Strategy Design, Strategy Management, Innovation, Leadership for Execution, Operational Performance, and Risk & Governance.

For further information, please contact: Ms. Magdalena Toth Palladium Group APAC Phone: +61 2 8259 1000 mtoth@thepalladiumgroup.com www.thepalladiumgroup.com

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C6 May 20, 2011

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Health A Guide to

Headache Remedies

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(Real Simple) – Head hurts? Try one of these doctor-approved pain relievers. www.pratique.fr

RELAXATION TECHNIQUES Best for: Soothing stress before

blood vessels to dilate and create pressure,” says Rosenberg.

Consuming caffeine constricts those vessels, relieving pain. Sip a cup of coffee at the first sign of a headache.

a headache starts.

How they work: Simple deep breathing and stretching (neck and shoulder rolls, in particular) relax tense muscles that trigger headaches, says Sheena Aurora, M.D., the director of the Swedish Headache Center, in Seattle.

A pulse-point balm with aromatherapeutic ingredients, like peppermint, can help, too.

Keep in mind: This method is effective only if you typically consume less than 150 milligrams of caffeine a day. (That’s about one cup of coffee.) If you usually drink more, your blood vessels won’t be as responsive.

Keep in mind: Stretching also improves poor posture, another possible cause of headaches.

PEPPERMINT TEA Best for: Those

whose headaches are accompanied by an upset stomach.

COLD OR HEAT THERAPY Best for: Medicinefree relief from minor tension headaches (which, unlike migraines, aren’t debilitating).

How it works: Experts aren’t sure precisely why each therapy is effective, but cold slows blood flow and reduces inflammation, and heat increases blood flow; both of these may ease pain.

“Go w i t h ti ms your perea .dr w sonal preferww ence,” says Jason Rosenberg, M.D., the director of the Johns Hopkins Headache Center at Bayview, in Baltiom

.c me

more.

Apply a cold compress (a fabric-wrapped cold pack stays cooler longer) or a heating pad wherever you hurt; limit treatment to 15 minutes at a time.

Keep in mind: You can also al-

Can You Imagine Cancer Away?

(CNN) – By now, you likely know David Seidler, who won an Oscar on Sunday for best original screenplay for “The King’s Speech,” was a stutterer just like King George VI, whose battle with the speech disorder is portrayed in the film.

What you might not know is that Seidler, 73, suffered from cancer, just like the king did. But unlike his majesty, Seidler survived the cancer, and he says he did so because he used the same vivid imagination he employed to write his award-winning script.

Seidler says he visualized his cancer away.

“I know it sounds awfully Southern California and woo-woo,” he admits when he describes the visualization techniques he used when his bladder cancer was diagnosed nearly six years ago. “But that’s what happened.”

Seidler says when he found out his cancer had returned, he visualized a “lovely, clean healthy bladder” for two weeks, and the cancer disappeared. He’s been cancerfree for more than five years.

Whether you can imagine away cancer, or any other disease, has been hotly debated for years.

One camp of doctors will tell you that they’ve seen patients do it, and that a whole host of studies supports the mind-body connection. Other doctors, just as wellrespected, will tell you the notion is preposterous, and there’s not a single study to prove it really works.

“When I was first diagnosed in 2005, I was rather upset, of course,” Seidler says in a telephone interview from his home in Malibu, California. “After three to four days of producing a lot of mucus and salty tears, I knew prolonged grief was bad for the autoimmune system, and the autoimmune system was the only buddy I had in fighting cancer.”

After consulting with California urologist Dr. Dino DeConcini, Seidler decided not to have chemotherapy or have all or part of his bladder removed, common treatments for bladder cancer. Instead, he opted for surgery to remove just the cancer itself, and he took supplements meant to enhance his immune system.

Despite his best efforts, the cancer came back within months.

Seidler was forced to rethink his decision not to have chemotherapy or bladder surgery.

As his doctor booked an appointment for surgery two weeks later, Seidler commiserated with his soon-to-be-ex-wife, and it was a comment from her that gave him the idea to try to visualize his cancer disappearing. “She said, ‘Well, what happens if in two weeks they go in and there’s no cancer?’ “ he remembers. “I thought to myself that’s the dumbest thing I’ve ever heard. This woman’s in total denial.”

But later, reflecting upon her comments, Seidler thought perhaps she might be on to something -- perhaps it would be possible for his cancer to just disappear while he waited for surgery. Figuring he had nothing to lose, for the next two weeks he imagined a clean bladder.

“I spent hours visualizing a nice, cream-colored unblemished bladder lining, and then I went in for the operation, and a week later the doctor called me and his voice was very strange,” Seidler remembers. “He said, ‘I don’t know how to explain it, but there’s no cancer there.’ He says the doctor was so confounded he sent the tissue from the presurgical biopsy to four different labs, and all confirmed they were cancerous.

“Love, Medicine & Miracles,” says it’s the same way an athlete uses visualization to improve performance.

But Dr. Marcia Angell, former editor-in-chief of The New England Journal of Medicine, calls the mind-body connection a “new religion” that encourages false hope.

“There is something so biologically implausible that your attitude is going to cure a disease,” says Angell, a senior lecturer in social medicine at Harvard Medical School. “There’s a tremendous arrogance to imagine that your mind is all that powerful.”

Seidler says the doctor couldn’t explain how it had happened. But Seidler could.

He says he believes the supplements and visualizations were behind what his doctor called a “spontaneous remission” – plus a change in his way of thinking. He stopped feeling sorry for himself because of his cancer and his impending divorce.

While Seidler says he knows his unorthodox recovery techniques sound “woo-woo” to some ears, they sound “like science” to Dr. Christiane Northrup, a bestselling author who’s written extensively on the mind-body connection.

She says by moving himself “from fear and abject terror into action,” Seidler changed his body’s chemistry. “Fear increases cortisol and epinephrine in the body, which over time lower immunity,” she says.

Whether you’re convinced of the effects of visualization or not, Northrup says there’s no harm in trying them, as long as you realize that like any other treatment, visualization might not work.

There’s no definitive guide to visualization, but Siegel, who’s instructed his patients in imaging for many years, has a few suggestions.

First, he says to draw a picture of four things: yourself, your health problem, your treatment and your body eliminating your problem. These pictures might tell you what sort of imagery would work best for you.

High levels of the two stress hormones lead to cellular inflammation, which is the way cancer begins, Northrup says. Taking action, as Seidler eventually did, decreases the hormones.

“Hope is actually a biochemical reaction in the body,” she says.

Dr. Bernie Siegel, author of

She says stories like Seidler’s are just that – only stories and not proof that the mind-body connection is real. Some other part of the patient’s treatment plan likely explains success against the disease, or in other cases, the success is temporary and part of the natural course of the disease.

For example, she says bladder cancer often returns. “You beat it down, and it comes back, and you beat it down, and it comes back,” she says. “If [Seidler] had bladder cancer, this may very well not be the end of the story.”

For example, when one of Siegel’s patients drew her disease as 10 cancer cells next to one white blood cell, he suggested she visualize her body making more white blood cells.

Second, he says to know yourself. One religious patient of his had been visualizing dogs attacking and eating up her cancer, which didn’t work, so instead she pictured her tumor as a block of ice and God’s light melting it away, which he says was more effective.

Third, he suggests not visualizing anything violent, since most of us aren’t violent by nature.

ternate the two in five-minute increments. Start with cold, then switch to heat.

CAFFEINE Best for: aches.

Mild tension head-

How it works: “One way that caffeine may help is by blocking brain receptors to adenosine, a neurotransmitter that can cause

How it works: “There’s evidence that peppermint may reduce spasms in the gastrointestinal tract, which can relieve headache symptoms,” says Audrey L. Halpern, M.D., the director of the Manhattan Center for Headache and Neurology.

What’s more, “neurochemical changes in the brain brought on by headaches can also affect the part of the brain that stimulates nausea,” says Halpern. And peppermint has been shown to ease a queasy stomach.

Keep in mind: If you’re pregnant, talk to your doctor before

using any herbal remedy or supplement, including peppermint.

OVER-THE-COUNTER MEDICATIONS Best for: Headaches that do not respond to other remedies.

How they work: Acetaminophen products, like Tylenol, and nonsteroidal anti-inflammatories (NSAIDs), like Aleve and aspirin, decrease inflammation and in-

hibit chemicals in the brain that produce pain.

Experiment to figure out which type works better for you, but use these OTCs only one day a week.

Taking them more often than that can cause medication-overuse headaches, says Halpern. To minimize stomach discomfort, take with milk or food.

Keep in mind: For stronger relief, consider a brand that combines an NSAID with caffeine, such as Excedrin. According to the National Headache Foundation, caffeine may help the body absorb the medicine better.

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Health

When a Headache Really is a Brain Tumor (CNN) – It’s become a classic scenario: You have a headache and after Googling it, you find out a headache can be a sign of a brain tumor. If you rush to the emergency room suspicious that you have a tumor or something else deadly serious, chances are you’re being paranoid. But sometimes you’re not being paranoid – you’re being right.

T

hat’s what happened to Debbie Tonich when her son John’s headache, diagnosed initially as dehydration or a flu bug, turned out to be a cancerous tumor. In this case, paranoia -- or some would call it mother’s intuition -- paid off.

“I think I saved his life,” Debbie says.

wasn’t nearly as dire as the ER physician had made it sound. It turned out he had a medulloblastoma, a tumor diagnosed in about 1,000 people every year, according to the American Brain Tumor Association. Dr. Tanya Tekautz, John’s doctor and co-director of the Pediatric Brain Tumor Program at the Cleveland Clinic, says 50 to 60 percent of children with the same type of medulloblastoma John has are still alive five years after their diagnosis.

a brain tumor, but doctors do have some red flags. Before reading them, there are some important points to remember.

First, 50%-60% of all people with brain tumors don’t have headaches at all, Barnett says.

Second, your headaches could fall into all these red flag categories and you could not have cancer. Third, your headaches could fall into none of these categories and you could still have a brain tumor.

One Sunday in February, shortly after a wrestling match, 16-year-old John Tonich, a high school sophomore, started having short, sharp headaches.

“They lasted 10 seconds, and I’d have to take a second and sit down or go stand off to the side,” John remembers. “I had three or four of them a day.”

At first his parents thought it was a concussion, since John had been thrown to the mat during his match. Two days later, when the headaches didn’t go away, they took John to their family doctor in Parma Heights, Ohio. She diagnosed dehydration, which made sense to the family since John had been drinking less to fit into a lower weight class for wrestling.

She drew some blood from John and told him to drink Gatorade.

John’s family says the surgeon managed to remove the entire tumor, and he’s now in a clinical trial receiving both radiation and chemotherapy.The Toniches don’t blame the family doctor for not figuring out John had a brain tumor, since headaches can mean so many different things.

“She went with what was logical,” Joe says.

Red flag No. 1: These headaches are new for you

Two days later, on Thursday morning, the headaches disappeared, but John was feeling nauseated. Debbie took him back to the doctor and asked if it could be a concussion, and John wondered out loud if it could be an aneurysm. They say their family doctor told them it was probably the stomach bug that was going around.

“As we were walking out the door, she handed us a prescription for a CT scan, and said, ‘Just in case,’” Debbie remembers.

“The worst possible tumor in the worst possible place” The Toniches never used that prescription. The day after that second visit to the doctor, John texted Debbie from school that he felt dizzy. She picked him up and went right to the emergency room.

“I didn’t use the prescription, because then I’d have to wait for an appointment, and I knew that could be a while, and then I’d have to wait again for the results,” she says.

At the emergency room, John had a CT scan and then an MRI. “The doctor came in and told John he had the worst possible cancer in the worst possible place and would have a year to live, or two at the most,” his father, Joe, remembers. “We came in thinking he had a slight concussion and left with a death sentence.”

John immediately went by ambulance to the Cleveland Clinic, where it turned out the situation

For every 4,000 children who have headaches, one will have a brain tumor, according to Dr. Santiago Medina, co-director of the Department of Radiology’s Division of Neuroradiology at Miami Children’s Hospital.

They’re certainly glad, though, that they took matters into their own hands and went to the emergency room. Debbie says her son’s illness just didn’t seem like a flu, when someone usually suffers many symptoms all at once.

“Everything that went wrong was single things -- first the headaches came and went, then the nausea, then the dizziness. It just didn’t make sense,” she says. “If something doesn’t feel right, keep pressing. Don’t stop.”

Of course, John’s story is highly unusual; the vast majority of people who have headaches don’t have brain tumors.

“Ninety-nine percent of the time, a headache isn’t cancer,” says Dr. Gene Barnett, director of the Brain Tumor and Neuro-Oncology Center, who treats adults at the Cleveland Clinic. “It’s a stress headache or a migraine or sinusitis or something else benign.”

For every 4,000 children who have headaches, one will have a brain tumor, according to Dr. Santiago Medina, co-director of the Department of Radiology’s Division of Neuroradiology at Miami Children’s Hospital.

Of course, there’s no simple way to tell whether your headache is

If you don’t usually have headaches, or if this is a different type of headache from the ones you usually have, that could be a warning sign, Medina says.

Red flag No. 2: Your headaches are accompanied by other symptoms Barnett says he rarely sees a brain tumor patient whose only symptom was a headache. Most of the time, the person also has something else, such as nausea, dizziness, or vomiting. Sometimes the signs are even more obvious, such as seizures, difficulty speaking, weakness in the limbs, or problems with peripheral vision.

Red flag No. 3: Your headaches start when you wake up in the morning Typically, when someone has a brain tumor, the headaches start in the morning often accompanied by nausea and vomiting and get better as the day goes on, Barnett says.

“Headaches that come on as the day wears on and get worse into the evening are typically not associated with brain tumors,” he adds. “They’re more associated with the stress of daily life.”

Red flag No. 4: Your headaches get worse over time If your headaches get worse over a period of days, weeks, or months, that could be a warning sign, Barnett says.

Red flag No. 5: Something just doesn’t seem right You can have none of these red flags and still have a brain tumor. If your inner voice, or your doctor’s inner voice, says something is seriously wrong, listen to it.

“Guidelines are just guidelines,” Medina says. “There are cases where the mother says my child doesn’t look right, or where the pediatrician says the child doesn’t look right, even though I can’t put my finger on it, and we do imaging on those kids.” (CNN)

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C8 May 20, 2011

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Culture-Tourism UNESCO Cites Aceh’s Saman Dance

SPECIAL

RI helps South Pacific nations develop ecotourism Indonesia is assisting developing countries in the South Pacific region in promoting their ecotourism, a Foreign Ministry official said.

“Indonesia has technical cooperation program to assist other developing nations as we have large assets and experiences in developing ecotourism,” Director General of Public Information and Diplomacy at the Foreign Ministry Andri Hadi said here recently.

Speaking at a meeting on International Training Program on Ecotourism for Pacific Countries, he said as a donor country, Indonesia had played a role in the area of capacity building and technical cooperation diplomacy.

“The assistance is given to developing countries in the South Pacific countries to develop their ecotourism as well as to deal with climate change,” he said.

“The training program in Yogyakarta marks the start of the cooperation.

Yogyakarta has been chosen to host the training because it has a center for ecotourism studies,” he said.

The inclusion of the Saman dance of Aceh in UNESCO`s list will increase the number of Indonesian cultural heritages which have earlier been recognized by the world body such as the `wayang` puppet show, `keris` dagger, `batik` clothes and `angklung` bamboo music instrument. he people of Aceh province may celebrate with pride when the United Nations Educational, Scientific and Cultural Organization (UNESCO) officially includes the Saman dance, one of their cultural heritages, in its `Representative List of the Intangible Cultural Heritage of Humanity’ in November.

The inclusion of the Saman dance of Aceh in UNESCO`s list will increase the number of Indonesian cultural heritages which have earlier been recognized by the world body such as the `wayang` puppet show, `keris` dagger, `batik` clothes and `angklung` bamboo music instrument.

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cultural heritage by the UNESCO in Bali on November 19, 2011,” Head of Tourism and Cultural Resources of the Ministry of Culture and Tourism, I Gde Pitana said recently.

Saman dance is a traditional dance that does not utilize any music instrument. The dancers themselves will sing and clap their hands together to create harmony in movement and sound.It teaches us that, among all differences, corporation and unity can create the finest result especially to encounter any conflict and ego of human beings. The uniqueness and the high spirituality aspect it has, cause the dance to deserve appreciation, preservation and recognition.

“Saman dance will be announced as a world intangible

Of the recognized world heritages, 11 belonged to Indonesia, of which four were nature preserves like parks, three cultural preserves like temples and four were intangible cultural heritage.

Saman dances were basically divided into two kinds, namely the Rateb Duek dance and the Rateb Dong one. The Rateb Duek dance is popular and derived from the hinterland areas while the Rateb Dong one came from Aceh`s coastal areas. But in principle, these two types of dances are in one unity.

Aceh has many kinds of sa-

The ecotourism training held by the ministry in cooperation with the Yogyakarta-based Gadjah Mada University (UGM) was participated in by 10 South Pacific countries, he said. The training included development of ecotourism in the Pacific region and climate change and its impact on tourism industry.

Most foreign tourists to Kepri come from Singapore The Central Bureau of Statistics (BPS) said that 55.71 pct of 133,620 foreign tourists visiting Riau Island Province in March 2011 came from Singapore.

The Singaporean tourists visiting Riau Islands (Kepri) reached 74,444, head of the Kepri BPS Mangaputua Gultom said here recently.

The number of Singaporean tourists to the region in March 2011 increased by 13.18 pct compared to last year`s February.

The number of Malaysian tourists in March 2011 reached 18,935, a 3.74 pct increase, while those visiting Kepri in March 2011 had a contribution of 14.17 pct.

South Korean tourists to Kepri reached 6.154, with a contribution of 4.61 pct of the total number of foreign tourists to the area at that time.

“The tourists from other countries to Kepri in March 2011 had a contribution of less than 3 pct, like those from China, India, Philippines, Japan, UK, US, and Australia,” Gultom said.

He said the number of foreign tourists to Kepri in March 2011 reached 133,620, up by 2.37 pct compared to that in February 2011 reaching 130,531. Some 65.94 pct of foreign tourists arrived by way of Batam with a total of 87,776.

He said that the recognition by the UNESCO of Saman dance would increase the number of Indonesian cultural heritages which had been recognized by the world body like the wayang puppet, keris dagger, batik clothes and the angklung bamboo music.

He said that his office has noticed 890 world heritages, of which 689 were cultural heritages, 176 nature heritage and 25 others were mixture heritage of the two.

Saman dance is a traditional dance that does not utilize any music instrument. The dancers themselves will sing and clap their hands together to create harmony in movement and sound.

man dances such as the Gayo dance, the Seudati dance in the coastal areas, the Rante Meusekat in Meulaboh, West Aceh, and others such those of Nagan Raya district.

Borobudur Conservation Hangs in Balance Conservation experts are racing against time to preserve the Borobudur World Heritage Site which was severely damaged by a volcanic eruption in Indonesia last year - and authorities have issued a call for global financial assistance to help safeguard the historic site.

Massive destruction was caused when the active volcano Mount Merapi erupted on 26 October 2010.

The Indonesian National Disaster Management Agency reported a month later that the eruption had killed 322, injured 776 and displaced 136,585 people who made a living from Mount Merapi`s fertile slopes.

Besides this catastrophic human toll, the volcano blanketed the surrounding areas in volcanic ash, posing a threat to ancient cultural icons such as the Borobudur Temple Compounds.

Indonesian Ministry of Culture and Tourism officials closed the complex, which is situated 25-km away from Mount Merapi, and began a clean-up operation of volcanic ash from the grounds of the Borobudur, Mendut and Pawon temples to prevent corrosion of their stonework from the hazardous dust.

Indonesian Ministry of Culture experts analysed the ash and found it to be slightly acidic (pH 5-to-7) and to contain hyaline (a glass-like substance) structures.

of the Local Community Livelihood in Cultural Industries and Heritage Tourism” was put into place.

The three-phase actions are: execution of an emergency cleaning operation with full participation of the local community, notably cleaning of the surface of the stone monuments and the drainage systems, related archaeological parks and surrounding natural resources; joint scientific damage assessment missions with the Indonesian government and UNESCO for the establishment of comprehensive remedial conservation measures and workshop for Natural Disaster Management at the cultural heritage sites in Indonesia; and activitiesforthelocalcommunity with respect to livelihood and UNESCO and the income generation via the ‘Friends of Borobudur’, a tourism industries and cultural group of individuals with industries

a keen interest in the long-term safeguarding of the Borobudur Temple Compounds, welcome further financial assistance from donors, the private sector and other concerned partners to safeguard the outstanding universal value of the Borobudur Temple Compounds World Heritage Site.

This corrosive ash can cause serious damage to the monument`s drainage system and more importantly, it is a very serious threat to the unique carved reliefs, Buddha statues within stupas on the terraces and the facades, and balustrades at the temple, for which the site is justly famous.

When diluted in water, the acid ash reacts with the stone and seriously accelerates the erosion of its surface.

This potential and inevitable damage if not mitigated very soon constitutes a significant threat to the outstanding universal value of the three temples.

Therefore, the conservation problem at Borobudur needs to be urgently re-examined and the stone work urgently treated.

Indonesian authorities asked UNESCO for technical assistance at the disaster-affected areas and a programme titled “Emergency Operation for the Safeguarding of the Borobudur Temple Compounds from the Damage caused by the Mt. Merapi Eruption and Revitalization

The restoration process was fortunate to get the financial backing of the international community,includingtheprivate sector, to ameliorate physical conditions at the temple, in particular phase one and two actions, which witnessed a keen interest in preserving the Borobudur site.

Some funds have already been committed to these emergency actions, and identified preliminary operations are currently underway at the site using this financial allocation, which is essentially the process of removing surface coating from parts of the drainage systems and reliefs.

However, substantial financial resources are still needed to fully restore the Borobudur Temple Compounds, to rehabilitate the cultural tourism sector, and to enhance the livelihoods of affected local communities who are directly and indirectly dependent on the site for their livelihoods.

UNESCO and the `Friends of Borobudur`, a group of individuals with a keen interest in the long-term safeguarding of the Borobudur Temple Compounds, welcome further financial assistance from donors, the private sector and other concerned partners to safeguard the outstanding universal value of the Borobudur Temple Compounds World Heritage Site.

An online account at the UNESCO website has been set up for people who wish to donate and support the emergency intervention to safeguard the area for future generations.

Compared to March 2010 the visit of foreign tourists increased by 6.04 pct. The increase in the number of foreign tourists to Kepri in March 2011 was caused by the 11.15 pct increase in the number of foreign tourists in the two entries of Bintan regency and to Batam 1.69 pct.