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VP Boediono: Creative Industry Vital to Nation Since 2006 to 2010, the creative industry contribution to the gross domestic product increased from 7.4% to 7.7%. The added value of creative industry also rose from Rp157 trillion in 2006 to Rp486 trillion in 2010.
ACTOR RICHARD GERE MAKES ‘SPIRITUAL JOURNEY’ TO BOROBUDUR Over 400,000 Foreign Tourists to Visit Famous Temple in 2011 JAKARTA (TPP) – Visiting Hollywood star and Golden Globe award-winner Richard Gere last month emerged from a meeting with President Susilo Bambang Yudhoyono at the Presidential Palace in Jakarta, saying “I want to be involved in any big humanitarian events in Indonesia.”
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he meeting was held with both figures discussing humanitarian activities, Culture and Tourism Minister Jero Wacik said. Gere, accompanied by his wife and son, later flew to Yogyakarta and visited the Borobudur Temple in Cen-
tral Java. Gere was in Indonesia on an invitation from the Culture and Tourism Ministry in its efforts to promote tourism here. Jero said his visit was invaluable in raising the profile of the temple, after it had to be closed off for an extended period last year due to ash from the erupting Mount Merapi nearby. “We were looking for an international figure who could relate closely to Borobudur, and that figure is Richard Gere,” he said, adding that the actor had previously expressed an interest in visiting the monument. “He’s now become Indonesia’s informal tourism ambassador, and he’s not being paid at all,” he added. “This is a good start that needs to be supported by the ministries of tourism and foreign affairs. Many Hollywood films are set in Thailand and the Philippines, it’s time Indonesia's diverse landscapes and cultural features also appear in Western movies,” says SD Darmono, the chairman of
IATA Indonesian Chapter. “I’m happy and amazed to be here,” Gere said at a press conference at Magelang’s Manohara Hotel. “It’s not just an ordinary journey for me but also a spiritual journey.” He added that his arrival at Borobudur was “karma,” a term for the force generated by a person’s actions which affects future ones. Gere said he was particularly interested in coming back to make a movie about the discovery of Borobudur in 1814 by Sir Stamford Raffles. “I want to make a film about the history of this temple. I really want to do this,” he said. President director of the Borobudur-Prambanan-Ratu Boko Tourism Park Purnomo Siswoprasetyo said Gere’s visit boosted tourism in the area. "He meditated for 20 minutes this morning at the top platform and made a 45-minute tour to admire the details of the temple's reliefs," said Purnomo. He said Gere was “astonished” with the grandeur of the so-called
temple mountain, which lies between two volcanoes about 40 kilometers northwest of Yogyakarta. Donning a simple gray outfit, the 61-year-old actor arrived at the ninth century Buddhist site at around 5:50 a.m. to join monks in the Pradaksina ritual, which involves walking around the top floors of the temple three times. He then requested time for meditation at the Arupadathu floor, a sacred place for Buddhists in Borobudur.Gere then lay prone in front of the main stupa and prayed for half an hour. The most famous visitor to Borobudur was so far Charlie Chaplin. He came to Java in 1932 and visited the famous temple. The temple was abandoned with the spread of Islam on Java island in the 14th century, but was "rediscovered" by the English Governor Raffles. Restored with the help of UNESCO in the 1970s, it is now Indonesia's most-visited tourist attraction, drawing about 3.8 million people last year, according to Purnomo.
ASEAN-China Business School Network to be Set up The ASEAN Foundation, represented by its Executive Director, Dr. Makarim Wibisono, has met with expert academics from Gadjah Mada University in an effort to bring to fruition its initiative of establishing a network of business schools between ASEAN schools and their Chinese counterparts.
The ASEAN Foundation, represented by its Executive Director, Dr. Makarim Wibisono, has met with expert academics from Gadjah Mada University in an effort to bring to fruition its initiative of establishing a network of business schools between ASEAN schools and their Chinese counterparts. During the discussion, it has been identified that there is a shifting of global economic gravity from the wealthy America to Asia, the Jakarta-based ASEAN Foundation said in a press statement here recently.
seeking possibilities to set up a network of ASEAN business schools and their Chinese counterparts.”
The ASEAN Foundation Executive Director Dr. Makarim Wibisono “To address the shifting of global economic trend to Asian countries, the ASEAN Foundation is
This preliminary meeting to discuss the initiative was held on 27 June 2011 in Gadjah Mada University, Yogyakarta, between the ASEAN Foundation and a number of expert academics from Gadjah Mada University. The meeting was presided over by Prof. Marwan Asri, MBA, Ph.D., Dean of Faculty of Economics and Business of Gadjah Mada University.
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Population Growth and Food Security
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The government has allocated a budget of Rp 500 trillion for the next four years ahead for infrastructure projects, and the amount is small compared to the total amount that is needed.
Minister for State Enterprises Mustafa Abubakar has encouraged PT Merpati Nusantara Airlines (Merpati) to cooperate in operating N-219 aircraft built by state-owned plane builder PT Dirgantara Indonesia (PTDI).
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A total of 440,000 foreign tourists are expected to visit the Borobudur Temple in Central Java in 2011. "The number of foreign tourist arrivals at Borobudur has been quite encouraging lately despite several the eruptions of Mount Merapi," said Purnomo. The number of tourists visiting Borobudur had never decreased and leading travel agents have now included Borobudur and Prambanan tours in their itineraries, Purnomo said. "We are optimistic that the number of tourists visiting Borobudur will rise in the coming years," he said, adding that “various promotions will be organized to attract foreign tourists to Borobudur and surrounding areas. The Masterpiece of Borobudur Ballet will be performed at the Borobudur temple in the near future.”
It is the duties of all of us, the government and business players, to systematically build industrial networks which support the creative industry,"
Vice President Boediono, in his opening remarks officiating Indonesia Creative Products Week 2011 (PPKI 2011) early this month at the Jakarta Convention Center (JCC), underscored the need for the country to build industrial networks to support the creative industry. “Such networks will enable the nation’s creative industry to grow in a stable and sound manner,” he said. "It is the duties of all of us, the government and business players, to systematically build industrial networks which support the creative industry," he said.
According to Trade Ministry data, the creative economic industry exports in 2010 reached $131 billion, up from $85 billion in 2006. "The $131 billion does not include those from exports in the service sector," Trade Minister Mari Elka Pangestu said when officially kicking off the Fifth PPKI 2011. Since 2006 to 2010, the creative industry contribution to the gross domestic product increased from 7.4% to 7.7%. The added value of creative industry also rose from Rp157 trillion in 2006 to Rp486 trillion in 2010. In 2008, the fashion industry contributed 3.1% to the gross domestic product (GDP) and 63.3% of the creative industry’s total exports of Rp104.71 trillion.
AT&T Wins Operating License for Indonesia The giant US telcom company AT$T has won an operating license for Indonesia, the US Embassy here said in its official website on Monday. It said that on July 6, 2011, U.S. Embassy Jakarta and telecom giant AT&T held a cocktail reception at the Four Seasons Hotel to celebrate AT&T`s new telecommunications license - the Multimedia Service Operator (MSO) - in Indonesia. AT&T is the first foreign telecom operator to be granted such a license in Indonesia. The U.S. Ambassador Scot Marciel attended the reception and congratulated AT&T on receiving the MSO license.
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A2 July 12, 2011
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Opinion
Population Growth and Food Security When a country becomes overpopulated, it is hard for that country to feed its own people, let alone has extra food to sell to other countries. This contributes to governments relying on foreign debt to save people from starving.
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vice president said. But in an attempt to step up its food security, Indonesia will be assisted by the Dutch government in the framework of the two countries cooperation. "Food security is important issue especially with the prices which tend to rise," Dutch Minister for International Cooperation and European Affairs Ben Knapen said in a press conference at the national development planning board (Bappenas) building here recently.
By Otniel Tamindael
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opulation growth puts enormous pressure on a country`s education system and other social resources, and is closely related to any dramatic decline in food security. Overpopulation in Indonesia is feared to be a major source of concern into the next century as the country`s population is expected to reach 450 million by 2045 barring efforts to control population growth. According to the National Family Planning and Population Board (BKKBN), Indonesia`s population in 2011 has increased to more than 241 million. "Indonesia`s population in 2011 has increased to more than 241 million," BKKBN spokesman Sudibyo Alimoeso said. Based on a 2010 census, Sudibyo explained that the population exceeded the national projection of 237.6 million with a growth rate of 1.49% per year. "It is the figure of the census in 2010 and it means that the population this year has again increased," he said. Sudibyo added that if the pace of population growth was 1.49% per year, the figure would increase every year by about more than 3.5 million people. "Thus the population in 2010 was 237.6 million, and in 2011 it increased by 3.5 million to become more than 241 million in total," Sudibyo said. He added that if the population growth rate is not lowered, the country`s population would rise to 450 million in 2045, meaning that one among 20 people in the world would be an Indonesian. Sudibyo said concrete steps should be taken to reduce the
According to the vice president, domestic food availability should continue to be maintained and the prices should be kept stable in order to be affordable by all people. In such a global situation, Boediono said, Indonesia had to secure its food supply as much as possible.
rate of population growth and to increase the population`s quality through various programs. "To make this happen, a grand design is needed for the revitalization of national family planning program," he said. The effects of overpopulation have been felt everywhere in Indonesia. It can be concluded that overpopulation directly affects poverty levels and also has an effect on the quality of life, the environment, animals and politics as well. The effects of overpopulation can also be felt on today`s economy. According to www.knowledgegalaxy.net, when a country becomes overpopulated, it is hard for that country to feed its own people, let alone has extra food to sell to other countries. This con-
tributes to governments relying on foreign debt to save people from starving. Everyday, 40,000 children die due to malnutrition and related diseases and approximately 150 million children at any given time in the world are suffering from poor health because of food shortages. Vice President Boediono said it was absolutely necessary for Indonesia to maintain its food security by increasing its production. Speaking recently at a function to open the Farmers-Fishermen National Week 2011 (Penas 2011) at Kutai Kartanegara district town of Tenggarong in East Kalimantan, the vice president said, "Self-sufficiency in rice and other staple commodities should be reached and maintained because
Indonesia must be safe in food." He said Indonesia and other countries face the same challenge of food security and that the country should provide enough food to meet the demand that was ever increasing at a fast rate. According to the vice president, domestic food availability should continue to be maintained and the prices should be kept stable in order to be affordable by all people. In such a global situation, Boediono said, Indonesia had to secure its food supply as much as possible. "Food prices are getting more unstable and increasing more and more, and increasingly difficult to anticipate. Such situations complicate all parties: producers, consumers, and the governments of developing countries alike," the
Knapen said if the food prices were not controlled, it would have a negative impact on the poor people. According to him, food security was one of several cooperation programs between Indonesia and the Netherlands, which would help Indonesia among others in food research and development. He said the focus of cooperation this time was not as wide as that in the past, because it would be aimed at improving institutional capacity for development, climate change, and forest damage management. The Dutch government has a commitment to supporting development cooperation in the form of grants amounting 53 millions of euro. Meanwhile, State Minister for National Development Planning Board/National Development Planning Board chairman Armida S Alisjahbana said the cooperation between Indonesia and the Netherlands was focused on a number of important sectors. She said the important sectors were about water related climate issues, food security, governance which was focused on law, and higher education. Armida pointed out that the Netherlands was known to have a lot of experts in water management, and therefore the country would help Indonesia develop wa-
"It is the most important thing in the future and that the government of Indonesia should focus on agriculturally-based researches to develop prime seeds which are resistant to any climate and pests." ter management system in Jakarta. Even the Asia Development Bank (ADB) has reminded developing countries including Indonesia of the importance of food resilience which was predicted to be a main problem following the increasing world`s population. "In the short term, food demand of the population may be adequate but it has always been a fundamental issue from time to time," ADB Managing Director Rajat M Nag said in Jakarta recently. He explained that the population growth in Asia would get higher and therefore food productivity especially rice should be stepped up. "Food supply will sooner or later be depleted and therefore it is needful to increase productivity to anticipate food and energy scarcity in the future," Rajat said. That is why ADB suggested that the government develop greenrevolution-based technology and increase agriculturally-based researches. "It is the most important thing in the future and that the government of Indonesia should focus on agriculturally-based researches to develop prime seeds which are resistant to any climate and pests," he said.
RI, NAM and Nuclear Weapons Threat The NAM on the final day of its 16th Ministerial Meeting in Bali, May 2011 issued a Statement on "the Total Elimination of Nuclear Weapons" calling for the nuclear weapon disarmament for the sake of preserving world peace.
By Fardah
A
s the Coordinator of the Non-Aligned Movement (NAM)`s Working Group on Disarmament, Indonesia has been very active in voicing the grouping`s concern about the threat of nuclear weapon to humanity. At the General Debate of the 2008 United Nations Disarmament Commission New York, in April 2008, Dr. Marty M. Natalegawa, who was at that time Indonesia`s Permanent Representative to the United Nations, on behalf of NAM, stressed that progress in nuclear disarmament and non-proliferation in all its aspects is essential to the strengthening of international peace and security. NAM again reiterated the call for the realization of a world which is free from nuclear weapons at the General Debate on All Disarmament and International Security Agenda Items of the UN General Assembly`s First Committee on October 4, 2010. "NAM States Parties to the NPT (Non-Proliferation Treaty) commend the efforts of the President of the 2010 NPT Review Conference, and consider that although imperfect, `Conclusions and Recommendations for Follow-on ac-
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tions` of the Conference represent an outcome that can be built upon and further enhanced in the near future, to realize a world free from nuclear weapons," Hasan Kleib, Indonesian Permanent Representative to the United Nations, said on behalf of NAM at the UN meeting last year. NAM underlined that the total elimination of nuclear weapons was the only absolute guarantee against the use or threat of use of nuclear weapons. "The Movement emphasizes the necessity to start negotiations, as soon as possible, in the Conference on Disarmament on a phased program for the complete elimination of nuclear weapons with a specified framework of time, including a Nuclear Weapons Convention. The aim should be the complete elimination of nuclear weapons by 2025," the Indonesian diplomat said. The NAM on the final day of its 16th Ministerial Meeting in Bali, May 2011 issued a Statement on "the Total Elimination of Nuclear Weapons" calling for the nuclear weapon disarmament for the sake of preserving world peace. The NAM ministers attending the Bali meeting reiterated their deep concern over the nuclear weapons threat to humanity, and therefore, the total banning of nuclear weapons in the world was a pri-
ority of NAM. The Movement also intended to organize a summit to identify ways and facilities to abolish nuclear weapons as early as possible. "The Ministers, in the framework of the 50th Anniversary of the Non-Aligned Movement, declared their firm commitment to work for convening a high level international conference to identify ways and means of eliminating nuclear weapons at the earlier possible date, with the objective of an agreement on a phased program for the complete elimination of nuclear weapons with a specified framework of time, to prohibit their development, production, acquisition, testing, stockpiling, transfer, use of threat of use, and to provide for their destruction," the NAM statement stated. The Movement of Non-Aligned Countries was founded at the First Summit Conference of Belgrade, on September 1-6, 1961. The Conference was attended by 25 countries: Afghanistan, Algeria, Yemen, Myanmar, Cambodia, Srilanka, Congo, Cuba, Cyprus, Egypt, Ethiopia, Ghana, Guinea, India, Indonesia, Iraq, Lebanon, Mali, Morocco, Nepal, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, and Yugoslavia. Indonesia itself has been committed to realizing a nuclear-free world. Foreign Affairs Minister
PUBLISHED BY PT Sarana Pratama Pengembangan Kota CEO & EDITOR IN CHIEF Ali Basyah Suryo
LAYOUT & DESIGN Mohamad Akmal
CONTRIBUTORS Atmono Suryo Cyrillus Harinowo Hadiwerdoyo Thomas W. Shreve Jeannifer Filly Sumayku Eka Putri
SALES & MARKETING Detia Rais (Head) Erni Imansyah
EDITORIAL & CIRCULATION DEPARTMENT Srimay Noviani
PHOTOGRAPHER Nandi Nanti
announced the country`s pledge to ratify Comprehensive Nuclear Test Ban Treaty (CTBT), at the opening of the 2010 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), in New York, on May 3, 2010. Minister Marty Natalegawa attended the conference in two capacities, namely as representative of the Indonesian government and on behalf of the 120-member NAM that are party to NPT. Indonesia`s step is expected to generate a domino effect, inspiring the eight countries which have not yet shown their intention to ratify the Treaty. CTBT bans all nuclear explosions in all environments, for military or civilian purposes. It was adopted by the United Nations General Assembly on 10 September 1996 but it has not entered into force. Indonesia`s declaration means CTBT needs only eight more ratifications - China, Egypt, the Democratic People`s Republic of Korea (DPRK), India, Iran, Israel, Pakistan and the United States - before it can enter into force. Of the eight countries, China, Egypt, North Korea, India, Iran and Pakistan are members of NAM. The NPT (Nuclear Non-Proliferation Treaty), which came into force in 1970, is one of the United
Nations` main set of rules regarding nuclear disarmament and the prevention of proliferation. A total of 190 states are party to the treaty, but some nations that are known or believed to possess nuclear weapons have not endorsed it. When a delegation of the Indonesian House of Representatives (DPR RI)`s Commission I led by Muhammad Najib, at the Secretariat of Preparatory Commission Comprehensive Nuclear-Test Ban Treaty Organization (CTBTO) in Vienna, last May 2011, CTBTO Executive Secretary Tibor Toth called on Indonesia to help invite other NAM member countries to also ratify the CTBT. In the CTBT context, Indonesia`s ratification would add visibility to global efforts to bring the treaty into force. It could also help create positive momentum in the United States and underline the need for public debate in the remaining states, particularly in China and among the NAM. A ratification announcement by Indonesia would demonstrate goodwill and commitment of a leading NAM country to both nonproliferation and disarmament, and strengthen the NAM`s hand in pressing for more progressive language on disarmament in the final document.
The NPT (Nuclear NonProliferation Treaty), which came into force in 1970, is one of the United Nations` main set of rules regarding nuclear disarmament and the prevention of proliferation. A total of 190 states are party to the treaty, but some nations that are known or believed to possess nuclear weapons have not endorsed it.
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July 12, 2011 A3
The World The Multipolar World: An Economic Overview Although the global economy may be transformed into a multipolar world, it is of strategic importance for East Asia to strife and gain the position as the main pillar and epicenter of an expanding global economy. This will be to the benefit of East Asia and the countries in the region and also for the sustainable growth and stability of the global economy. By Atmono Suryo
G
GLOBAL DEVELOPMENTS lobal recovery continued during the year 2010 into early 2011. As was expected, however, it would not be a strong recovery. Various risks factors are still muddling the economic and business environment. The impression is that the global economy is not out of the woods yet, at least not during the current year. The down-side risks are the still lingering post-crisis difficulties in high-income countries. World currencies situation are also moving at slippery paths with the result that there is the notion that the biggest issue seems to revolve around the issue of finance (debt problems) and currency volatilities. A positive point to note, however, is that the global recovery has broadened to include more countries, especially developing countries. More private sector companies are coming up and there are more components of aggregate demand. Trade and investment is gradually replacing fiscal and
monetary stimulus as the principal drivers of economic growth. In addition, confidence is on the rise. This could add further buoyancy to private sector activities. It is estimated that global recovery is taking place at different speeds across countries and regions. Overall growth will be 3.2% in 2011 compared to 3.8% in 2010, before picking up again to 3.6% in 2012 and 2013. Net exports will grow from 2.6% in 2011 to 3.2% in 2012. Fixed investment from 1.4% in 2011 to 1.7% in 2012. Private consumption as a contributor of growth will also increase but not government consumption.
a transformative change. This will present new challenges. An important observation to note is that the report is intended to serve as a vehicle for stimulating new thinking on anticipated structural changes in the global economic landscape.
Multipolarity The World Bank is of the opinion that the global economy is heading towards multipolarity in the global economy. This trend will bring about the following main changes: • Changing growth poles and financial positions • Changing global corporate landscape • Multipolarity in international finance These structural changes are expected to change the world economic landscape. This in turn will entail a number of implications and complexities. New thinking will be required on global, regional and national issues.
MULTIPOLAR WORLD
Growth Poles
When the world crisis of 200809 is over the question is: where would the global economy be heading? What kind of a globalized world can we expect? Being part of this interdependent world Indonesia ought to know what kind of a world economic environment will evolve in order to be able to adjust to the upcoming global situation. At a meeting organized by the Paramadina Univerisity recently, the World Bank launched their preliminary report entitled “Multipolarity: The New Global Economy.” As the report states, the world economy is in the midst of
Changes are already taking place in the global economy as the advanced countries are experiencing lower growth rates while other countries are advancing at a fast speed. The current developments indicate that the world is moving toward a multipolar economic growth. Growth will not be confined to one group of countries. As the world will be struggling to find a stable footing a number of risks will remain. These risk factors include rising unemployment especially in the highincome countries but also in the
developing countries. Indonesia should be aware that these risk factors would also affect emerging countries. On the positive side, it is expected that in the coming one or two decades significant changes will take place in the global economy. There will be shifts in the global economic power relations, showing the increasing share of the developing countries in the global economy. The rise of emerging economies will, however, not only be confined to one region. In Asia, China has already surpassed Japan, while India, now in the 10th place is looking for bronze by 2030. Turkey wants to be in the 10th position by 2023. Indonesia has also its ambitions. Such growth expectations are spreading to Latin America (Brazil and Mexico) and also to some parts of Africa. These developments have their implications on the global economic and geopolitical landscape. A multipolar world seems to be in the making with numerous concentration of economic and business power that would entail the increase of competition. Indonesia must be aware that its competitive strength is still on the weak side. In the report emphasis has been given to the fact that the world economy is in the midst of a transformative change. It further states that “One of the most visible outcomes of this transformation is the rise of a number of dynamic emerging market countries to the helm of the global economy. It is likely that, by 2025, emerg-
ing economies – such as Brazil, China, India, Indonesia, and the Russian Federation – will be major contributors to global growth, alongside the advanced economies” It is quite an extraordinary assessment that the World Bank made about Indonesia. The pertinent question now is: will Indonesia be able to make it? There will be different opinions on this matter, positive and negative ones. But one thing seems to be clear: Indonesia will have the opportunity to be “at the helm of the global economic order, but it has to put its domestic political-economic situation in order”.
The Global Corporate Landscape
A trend which was not expected before is the possible change in the global corporate landscape. The shifts in economic and financial power has its important implications for the global corporate environment. In Asia it was Japan and the Asian tigers (South Korea, Taiwan, Hong Kong and Singapore) which opened the doors for Asia to enter the corporate arena. This is now followed by China, India and Malaysia. Asian Transnational companies and Asian brands are actively penetrating in the global corporate world. Other countries in Latin America such as Brazil and Mexico, Russia and the Middle East (United Arab Emirates) are also considered to be fast-movers. Corporate players based in emerging markets are changing the landscape of global investment, production and trade. According to the World Bank, they have become an important force behind new foreign direct investment (FDI). They are
also becoming growing participants in international markets, even in the international credit and loan areas.
International Finance As it now stands, in addition to the U.S. dollar the Euro has become an important international currency. Among emerging markets China’s Yuan/Renminbi is likely to take a more important international role. The expectation is that the most likely scenario is a multicurrency system centered around the U.S. Dollar – the Euro – and the Yuan/Renmimbi.
RISING CHALLENGES AND OPPORTUNITIES From the analysis made by the World Bank and observing the developments in the global economy one could come to some preliminary conclusions as follows: • The world is in the process of change. It is in the midst of a transformative change (as the report of the World Bank states). Sweeping changes are in the air which alter the global economic landscape; • There may be many factors which will trigger the big change. But one of the key factor is the growing clout of the emerging countries; they have become a powerful force in such key areas as international production, trade and finance; • This will result in a growing global market; trade-wise and production-wise. East Asia is one of the regions which stimulated this big change and has become an active and foreceful world economic player. The countries in East Asia, including Indonesia, will be in an advantageous position in the new
setting of rising opportunities but also increasing challenges. Although the global economy may be transformed into a multipolar world, it is of strategic importance for East Asia to strife and gain the position as the main pillar and epicenter of an expanding global economy. This will be to the benefit of East Asia and the countries in the region and also for the sustainable growth and stability of the global economy. The ASEAN+3 formation (ASEAN 10 plus China, Japan and South Korea) should continue with their plans to strengthen the “inner group” and to speed up the East Asia Summit process with the aim to develop the greater “East Asia Economic Community” concept. They have to race against time as other polars will come up in a multipolar world.
INDONESIA The time has come for Indonesia to take full advantage of its present good international/external economic position and proceed along the following lines: • With the changes taking place in the global economy (to become a multipolar economy) it is important to develop the strategies to take advantage of the changing global economic structure; • Strengthen its position in the Inter-ASEAN and ASEAN+3 arrangement with the objective to consolidate the common goals and prepare for the establishment of an “East Asia Economic Community” as early as opossible. The writer is former ambassador to the EU
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A4 July 12, 2011
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ASEAN Asean and Rising Asia www.chinatraveldepot.com
Asia is becoming an entirely different politicaleconomic landscape than some decades ago. It is expected by the world community that Asia will become one of the key drivers of the global economy. By Atmono Suryo
W
hen observing the developments in Asia since the end of the Cold War, one can only be amazed at the fact that this giant region (especially East Asia) is presently rising at a considerable speed. As a result thereof, Asia is becoming an entirely different political-economic landscape than some decades ago. It is expected by the world community that Asia will become one of the key drivers of the global economy. The economy of Asia in its totality covers some 46 different states comprising more than four billion people (60% of the world population). Wealth is mostly concentrated in the Eastern part of Asia, being known as the fast moving East Asia, a region known as one that was able to overcome with success the Asian financial crisis of 1997-98 and the current world recession of 2008-09. In terms of GDP, China, followed by Japan, India, South Korea and Indonesia, are the largest economies in East Asia. The two fastest growing major economies in the world are China and India. Indonesia is often rated as the third country after China and India. East Asia, including Southeast Asian countries grouped under ASEAN, generally rely on trade, manufacturing and commodities for growth.
upward positive slope. ASEAN is presently China’s fourth largest trading partner, after the European Union, the United States and Japan. Meanwhile, China has since last year become ASEAN’s largest trading partner. With regard to Indonesia-China two-way trade, in 2010 it neared the $43 billion mark. The two countries are aiming at $80 billion by 2015.
nomics ASEAN-China established the following platforms of cooperation (Figure 1). One will note that the agreements were made in stages: It started in 2002 with ACFTA (ASEAN-China Free Trade Area), which was implemented on January 2011, causing an outcry in Indonesia on account of its negative impact. It was to be supplemented by trade in goods and dispute settlement mechanism. Later came trade in services in 2007 and in 2009 the investment agreement. The ASEAN-China economic arrangement forms the largest free-trade area among developing countries. According to earlier statistics, ACTFA could be seen as an economic region with more than 1.8 billion consumers, a regional GDP of about $2 trillion and total trade estimated at $ 1.23 trillion.
CHINA’S MAIN POLICIES
ASEAN’s trade with China went up from $59.6 billion in 2003 to $196.9 in 2008. On account of the crisis it went down to $178,2 billion in 2009. China’s share of ASEAN trade was 4.2% in 1995 and went up to 11.3% in 2008 (Figure 2). According to China, ASEANChina two-way trade in 2010 approached the $300 billion mark, a spectacular increase indeed. The trend is that ASEAN-China economic relations are showing an
The city of Shanghai, China. According to the World Bank, thanks to China’s strong recovery, real GDP growth in developing East Asia reached 8.7% in 2010, after slowing to 7.0% in 2009.
Figure 1. TRADE & ECONOMIC AREA
According to the World Bank, thanks to China’s strong recovery, real GDP growth in developing East Asia reached 8.7% in 2010, after slowing to 7.0% in 2009. The region is expected to be able to grow robustly. Total population in East Asia amounts to 1.9 billion (almost half of total Asia’s four billion people), which includes China, Japan, India, South Korea and ASEAN 10 (the ten countries of ASEAN)
2002
2004
2007
Framework Agreement on Comprehensive Economic Coopertaion to establish the ASEAN-China Free Trade Area (ACFTA)
Agreement on Agreement on Trade in Goods & Dispute Settlement Mechanism
Agreement on Trade in Services (2007)
2009 ASEAN-China Investment Agreement (2009)
Source: ASEAN Foundation
Figure 2. CHINA'S as ASEAN'S LARGEST TRADING PARTNER: 11.6% OF ASEAN'S TOTAL TRADE
ASEAN-CHINA
In entering the new century, Asia (including China and the ten ASEAN countries) has made big strides. There are quite a number of factors which are driving them. One key factor is the emergence of giant China on the Asian scene. By the mid-1990s China has emerged as a strong economic power. It is now the second largest after the United States.
China's share of ASEAN trade 1995:4.2% >>> 2008: 11.3% FDI flows from China to ASEAN (in billion) 2.1
2008
1.5
One important development to note is that it was 20 years ago when ASEAN and China opened a new chapter in their relations. In 1991 the foundation was laid to foster mutual understanding and friendship and to explore, examine and initiate possible paths towards strengthening relations between the two parties. ASEANChina connection will undoubtedly be one of the key drivers of change in East Asia’s region’s economic landscape.
2009
ASEAN's trade with China Trade (in billion) 196.9
2003
178.2
2008 59.6
2009
Trade and Economics
Source: ASEAN Foundation
In the area of trade and eco-
Figure 3. ASEAN TRADE BY SELECTED PARTNER COUNTRY/REGION, 2009 value in US$ million; share in percent Value
Share to total ASEAN trade
Partner country/region Exports
ASEAN
Imports
Total Trade
Exports
Imports
Total Trade
199,587.3
176,620.1
376,207.3
24.6
24.3
24.5
China
81,591.0
96,594.3
178,185.4
10.1
13.3
11.6
EU-25
92,990.9
78,795.0
171,785.9
11.5
10.8
11.2
Japan
78,068.6
82,795.1
160,863.7
9.6
11.4
10.5
USA
82,201.8
67,370.3
149,572.1
10.1
9.3
9.7
Republic of Korea
34,292.9
40,447.4
74,740.3
4.2
5.6
4.9
Australia
29,039.3
14,810.8
43,850.1
3.6
2.0
2.9
India
26,520.3
12,595.5
39,115.8
3.3
1.7
2.5
Canada
5,500.4
3,539.2
9,039.6
0.7
0.5
0.6
Russia
1,660.6
5,104.9
6,765.5
0.2
0.7
0.4
New Zealand
3,137.6
2,238.6
5,376.2
0.4
0.3
0.3
Pakistan
3,833.8
469.6
4,303.4
0.5
0.1
0.3
638,424.5
581,380.8
1,219,805.2
78.8
80.0
79.4
Total selected partner countries/regions Others
172,064.7
144,973.3
317,038.0
21.2
20.0
20.6
Total ASEAN
810,489.2
726,354.1
1,536,843.3
100.0
100.0
100.0
Source: ASEAN Secretariat
Prime Minister Wen Jiabao’s important policy speech made at the 20th Year Commemoration Meeting organized by ICWA on April 30, 2011 stated among others the following observations: • China has all along supported a stronger ASEAN • It firmly supports ASEAN’s leading role in regional cooperation. The existing 10+1, 10+3 (China, Japan, South Korea) and the East Asia Summit should continue to develop with ASEAN at the driver’s seat • East Asian cooperation will enjoy sound development only if ASEAN continues to play its leading role. China supports rhe participation of the United States, Russia, the European Union and other countries in the East Asian cooperation process • Last year China became ASEAN’s biggest trading partner, as Indonesia has set the target of $50 billion in two-way trade by 2015 • In the next ten years China will speed up the realization of land transport connectivity between China and ASEAN countries • China to provide financial support for roadws, railways, communications, electricity and
other infrastructure development in ASEAN countries • China to increase input into maritime and air connectivity These statements should be seen as commitments to be carried out in the area of infrastructure development. It can be stressed that Indonesia has a particular interest in the area of connectivity and should take advantage of such commitments. At the moment the trade area still presents a number of great concerns, especially in Indonesia. The large inflow of Chinese goods, at cheaper prices and better quality, flooding the markets are pushing domestic producers out of the market and causing social unrest (Figure 3). Greater attention must therefore be given to find solutions on how to manage trade in such a way that it will give benefits to the people in ASEAN countries, particularly in Indonesia, which has the greatest number of SME’s and players in the informal sector. Observing the recent developments on China-ASEAN relations, one gets the impression that Indonesia and China are the core countries. In terms of size the two countries are the largest countries. It is in the interest of the ASEAN-China dialogue to develop the very best of relations between the two countries, to ensure the well-functioning of the dialogue and to produce the optimum benefits for all the stakeholders. The writer is former Indonesian ambassador to the EU.
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July 12, 2011 A5
Metropolitan Ciputra World 2 Set to Grace Jakarta Landscape PT Ciputra Property Tbk has launched a new project, Ciputra World 2, in an area covering 3.1 hectares, comprising 40 floors of luxury apartments in the Central Business District (CBD) Kuningan, Jakarta.
“
It offers a special design in buildings, the ‘lush garden’ concept,” said Artadinata Djangkar, Director of PT Ciputra Tbk. “We planted a garden in every corner of the corridor to make it look more open, creating cross ventilation and open air corridor that would make occupants breathe naturally after a long day working in indoor offices,” he said. In the first phase, two towers will be constructed out of five towers with an area of 80,000 square
meters- 90,000 square meters, consisting of ± 700 units of The Cedar Condominium and serviced apartmentd under the management of Fraser Suite. It will begin construction in early 2012 and will be ready for the market in the fourth quarter of 2011 with a price range of Rp. 20 million per square meter. In each tower there will be amenities, namely Sky Garden, which features a library, café, lounge, swimming pool, spa, gym, multifunction room and barbeque area are available. It pampers occu-
pants with comfort while allowing them to enjoy a panoramic view of Jakarta. According to Artadinata, a prime location in the heart of the CBD allows residents of Ciputra World 2 to undergo the walkto-work experience because they close to the CBD Golden Triangle of Jalan Sudirman, Jalan Gatot Subroto, Rasuna Said and Jalan Mega Kuningan. The company has entrusted its concept design to development to Singapore-based SCDA Architects since the end of 2010. Ciputra Property currently has
five projects that operate with excellent results, namely Ciputra Mall Jakarta, Ciputra Hotel Jakarta, Ciputra Mall Semarang, Ciputra Hotel Semarang and Somerset Grand Citra Apartment. It is also developing Ciputra World Jakarta, a superblock built on an area of 5,5 hectares at Prof. Dr. Satrio street which consists of shopping mall, the 174 roomRaffles Hotel, 136 units myHome condominium, 64.000 sqm of Grade-A office building, 170 service apartments, 88 luxury Raf-
fles Residence apartments and Ciputra Artpreneur Centre which consists of an art museum and an auditorium with a capacity to accommodate 1,200 people. The mall will have a gross and net area of 123,000 sqm and 78,000 sqm, respectively. The super block will also comprise a 306-unit apartment, 80 luxury apartments, a five-star hotel that boasts 180 rooms and an office complex with a gross area of 64,000 square meters. The construction of the basement areas started in 2008 but was hit by the global financial
crisis befoe it continued in 2009 with the renovation and the installment of its foundation. At the moment, it has reached the substructure development phase, which will be continued with the construction of a podium and a tower. The project is scheduled to be completed in 2012. The project has already contributed revenue to the company. As of 2008, 64 units of MyHome apartments have been sold, and the mall is already marketed by an in-house and agency team, Jones Lang Lasalle.
Jakarta Gears up for New Infrastructure Projects Coordinating Minister for Economic Affairs Hatta Rajasa and Jakarta Governor Fauzi Bowo have lately been busy discussing preparations for the implementation of infrastructure projects in Jakarta. They have given extra attention to the infrastructure projects after President Susilo Bambang Yudhoyono had made a harsh criticism on stalled infrastructure development plans particularly in the capital city which is notorious for grave traffic jams.
The head of state called for formulation of a master plan on the acceleration and expansion of the economic development. He, however, reminded that the master plan must not contain merely commitments, but focus on agreements on concrete projects. He said that the government had once calculated that the country needed a number of infrastructure projects and investments amounting up to at least $200 billion to be meaningful to the country`s economy.
"I am fed up with too many commitments, such as the commitment to the development of transportation in Jakarta, infrastructure in the capital city of Jakarta. There have been tremendous numbers (of commitments) over the past 10 years, but they are all just empty talks, no concrete implementation. Similar condition might apply in the regions. Stop doing that," the president said in Bogor, West Java, recently.
President Yudhoyono specifically ordered Jakarta Governor Fauzi Bowo to immediately improve the city`s transportation management to solve chronic traffic jams. "The problem must be solved by 2020," he said in his speech at the closing of the government`s working meeting recently. The transportation management is one of the three priority programs of the government. The other two are rice supply and employment.
To follow up the President`s instruction, several related ministers and Governor Fauzi held a coordinating meeting to prepare the draft of a Jakarta infrastructure master plan and the implementation of the projects immediately. "As requested by the President, the master plan must be ready soon," Transportation Minister Freddy Numberi said. The government will synergize various infrastructure projects in Jakarta and its surroundings within integrated transportation contexts, according to the minister. The projects will include Mass Rapid Transit (MRT), ManggaraiSoekarno Hatta Airport railway and Cikarang dry port accessible by railway. The implementation of the infrastructure projects will involve state-owned companies (BUMNs) which will invite investors under joint ventures. "The Manggarai-Soekarno Hatta Airport railway is expected to be realized in 2015. Hopefully, the
land acquisition problem could be solved soon," he said.
The government has allocated a budget of Rp 500 trillion for the next four years ahead for infrastructure projects, and the amount is small compared to the total amount that is needed. Hatta Rajasa Coordinating Minister for Economic Affairs
The main obstacle facing the project development is land acquisition. To deal with the problem, the government has allocated Rp 450 billion for the acquisition of land needed to build the Manggarai-Soekarno Hatta airport railway. "The funds are available in the transportation ministry," Coordinating Minister for Economic Affairs Hatta Rajasa said, adding that he has instructed that the plan for the railway project be completed immediately. "We ask for the immediate completion, then the design and land acquisition should be dealt with in the near future," the minister said. To help support the development of infrastructure projects, Jakarta Governor Fauzi Bowo hoped that the Bill on Land Acquisition for Public Interests could be passed into law. "Regarding land acquisition, we have not reached
a deal yet, but we have prepared the route alignment," Fauzi Bowo said. The train could take the Bukit Duri and Pluit routes, he added. According to State Minister of State Enterprises (BUMN) Mustafa Abubakar, the construction of the railway connecting Manggarai railway station and Soekarno-Hatta International Airport is estimated to cost around Rp 2.27 trillion. "Rp 2 trillion will come from the State Budget," Mustafa Abubkar said, adding that the development of the airport railway via Tangerang will be given priority because the cost was cheaper. "However, the airport railway through Pluit will also be built later, so that the airport rail network will become a circle," he said. Coordinating Minister Hatta Rajasa earlier said the connectivity among infrastructure development-based regions is the key to step up economic growth. "Rap-
id economic growth must be supported by infrastructure, and the key is connectivity. Inadequate infrastructure could cause heated economy and the demand response will be late," Hatta said. To accelerate the infrastructure development, the government has pledged to discard bureaucratic development by revising regulations and speeding up the passage of the law on land provision. "We will revise (some) laws and regulations to support the infrastructure development. We realize there are many obstacles. We will improve the agrarian system, decrease the land price risks, land freezing, and it is expected to be completed this year for the sake of justice concerning land," he said. According to Hatta, the government has allocated a budget of Rp 500 trillion for the next four years ahead for infrastructure projects, and the amount is small compared to the total amount that is needed. (Antara)
The President Post
A6 July 12, 2011
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The Economy ECONOMIC UPDATES
State Budget 2011 Records Over Rp 56 t Surplus
Production of Processed Wood Reaches New Height Indonesia`s processed wood production in the first half of 2011 reached 19.6 million cu meters, compared to 11.18 million cu meters in the same period last year. The increase suggested that the forestry sector still recorded convincing growth amidst the global economic slowdown, Forestry Minister Zukifli Hasan
Zulkifli Hasan
The biggest state revenues were contributed by receipts from the tax sector at Rp 386.7 trillion or 45.5% of the budget target in the first semester. Up to May 31, it reached Rp 326.6 trillion.
said here last week, Data from the Forestry Ministry show the processed wood production in the first semester of 2011 was still dominated by pulp with 13.5 million cu meters, followed by chip 3.8 cu meters. Plywood which served as main export commodity in the past reached 1.36 million cu meters in the January-June 2011 period, Secretary General of the Forestry Ministry Hadi Daryanto said. Sawn timber production in the first half of 2011 reached 373.33 thousand cu meters, followed by veneer 346.12 thousand cu meters.
T
he 2011 state budget up to May 31, 2011 recorded a surplus of Rp 56.9 trillion because the amount of revenues realized during the period was bigger than the amount of expenditure, the finance minister said. "The state budget also booked a funding surplus of Rp 120.3 trillion and in the first semester it is predicted to have a surplus of Rp36.8 trillion and unspent financing of Rp104.1 trillion," Finance Minister Agus Martowardojo told a hearing with the House of Representatives (DPR) here last week. He said that up to May the state
Govt to Eradicate Poverty in Fishery Ports The government has set itself the target of eradicating poverty among fishermen living around 816 fishery ports (PPI) in the country. "There are 816 PPIs in poor fishermen`s villages which are the target of the program," Maritime and Fisheries Affairs Minister Fadel Muhammad said here last week. Based on data on poor fishermen in coastal areas and PPI collected Fadel Muhammad from the Central Bureau of Statistics (BPS), the implementation of the program is divided into four stages, the minister said.
crease by average five percent of the tobacco customs tax, harmonized tariff policies and relatively good crude palm oil prices in the world market," the minister said.
Agus Martowardojo revenues totaled Rp 421.1 trillion while its expenditure amounted to Rp 364.2 trillion. It is estimated that in the first semester revenues would reach Rp 498.3 trillion and state expenditures estimated at Rp 461.5 trillion. The biggest state revenues were contributed by receipts from the tax sector at Rp 386.7 trillion or 45.5% of the budget target in the first semester. Up to May 31, it reached Rp 326.6 trillion. "Receipts from the tax sector improved because the country`s economic conditions were supportive, high Indonesian crude prices, in-
Rice Production to Rise 2.4%
In the first and second stages, the target is aimed improving the welfare of fishermen in 100 PPIs in 2011 and 400 PPIs in 2012. A total of Rp127.82 billion will be allocated for them in 2011 and Rp1.71 trillion in 2012. In the third and fourth stages, the programs would launched in 200 PPIs in 2013 and 116 PPIs in 2014. The minister said that the four strategies must be carried out to eradicate the poverty of about 7.8 million people living the coastal areas.
Indonesia`s rice production is estimated to rise by 2.4% this year, according to the National Statistics Agency (BPS). "There will be an increase of 2.4 percent," the agency`s chief, Rusman Heriawan, said here last week. Rice production is estimated to reach 68.06 million tons of dried unhulled rice this year up 1.59 tons from 2010, he said.
New Gas Reserves Found in Jambi New oil, gas and coal reserves have been found in the district of Tebo, in Muaro Sekalo village, Sumay sub-district, Jambi province, Tebo district head Majdi Muaz said. "The village sits on large deposits of oil, gas and coals. Studies are now conducted to know the amount of the oil, gas and coal deposit," the Tebo district head said here recently. He said that his office and the energy and mineral resources services of Jambi are planing a research program on the content of the deposits there.
He said production would rise because of the expansion of harvest areas by 313,150 hectares (2.36%) and a hike in productivity by 0.2 quintal per hectare (0.04%). Rusman added the figures were taken from forecast of production from January to April 2011 and estimates for May to December 2011 made based on conditions of rice field areas until the end of April. On corn and soybean, Rus-
Madjid said the deposits had important meaning for the development of the region`s economy in the future, where at present the people of Tebo relied on the plantation and agricultural sectors. "Oil and gas as well as coals could be another added values for the district to develop its economy. We have to find credible and trusted investors to tap the natural resources," he said.
RI Records Unprecedented Export Value in May
man said the production of the two commodities was expected to drop compared to that of 2010. Corn production in 2011 is estimated to reach 17.39 million tons down 5.10% from last year`s. Soybean production in 2011 meanwhile is estimated to reach 819,450 tons down 9.66 percent from last year`s. The director general of food crops of the ministry of agriculture, Udhoro Kasih Anggoro, admitted the BPS`s upward prediction by 2.4% did not match with his target of hike set at 5.2%. He said production could also increase due to support from the Corporate-base Movement for Increasing Food Production program of state-owned companies. "If the program is successful it will add 3.7 million tons of dried unhulled rice," he said.
In the meantime, the realization of the central government spending which was believed to dominate the state expenditure was expected to reach Rp 263.3 trillion or 31% of state budget target, which up to may had reached Rp 212.7 trillion. Spending on civil servants dominated the the central government`s expenditure at Rp 67.7 trillion and it is estimated to reach Rp 85.9 trillion of the target at Rp 180.8 trillion at the end of the first semester. Spending on capital expenditure was still seen lower at Rp 13.6 trillion, of the estimate in the first semester of Rp 20.5 trillion while the target was set at Rp 135.9 trillion. The minister also mentioned that the prognosis of the state revenues in the second semester would exceed the estimate of Rp 664.1 trillion.
Indonesia recorded the biggest export value in history in May this year, reaching $18.33 billion, according to the National Statistics Agency (BPS). "Exports in May 2011 stood at at $18.33 billion, the highest so far," BPS chief Rusman Heriawan said here last week. He added the value was higher than December 2010`s record of $16.83 billion. Compared to the value of exports in May 2010 the value of exports in May 2011 rose by 38.76%, he said. Total export value from January to May 2011 reached $80.82 billion or rose by 33.37% compared to the same period last year. Exports of non-oil/gas meanwhile reached $64.25 billion or rose by 31.31%. The biggest hike in the nonoil/gas exports in May 2011 was recorded in the exports of fat and vegetable/animal oil, $665.8 million, while the steepest drop was suffered by rubber and rubber products at $87.2 million.
Indonesia`s non-oil/gas exports to China in May 2011 were also reported to be the largest, reaching $1.81 billion, followed by exports to Japan at $1.53 billion and the US at $1.32 billion with contribution from the three reaching 32.75% while exports to the European Union (27 countries) reached $2.02 billion. Sectorally, exports of industrial products in the period from January to May 2011 rose by 36.28% compared to that of 2010. Exports of agricultural products also rose 21.27%. Based on provinces of export origin Indonesia`s biggest exports from January to March 2011 were from East Kalimantan worth $7.32 billion (16.13%), West Java $6.37 billion (14.04%) and East Java $4.45 billion (9.18%).
Govt Set to Cut Foreign Debts The government is making a constant effort to reduce the amount of foreign debts to minimize risks, a minister said. "We will always try to make as minimum foreign loans as possible," National Development Planning Minister/Head of the National Development Planning Agency (Bappenas) Armida S Alisjahbana said following a meeting with visiting Dutch Minister for European Affairs and International Cooperation Ben Knapen here last week. Armida said since 2010 the government had focused its financing priorities on ongoing activities as well as on new activities that had reached the final phase of preparation.
The foreign debts consisted of government debts totaling $128.6 billion and private debts totaling $85.9 billion.
Armida S Alisjahbana She said the Dutch aid commitment to Indonesia today was also not as large as those in the past. "This is in line with Indonesia`s wish and plan to continue to reduce the amount of foreign loans in a concrete manner," she said. Indonesia`s foreign debts until the end of the first quarter of 2011 reached $214.5 billion, up by $10 billion compared with the same period last year.
By the end of December 2010, the foreign debts of the government and private sectors respectively reached $118.6 billion and $83.8 billion. The foreign debts of the private sector in the four months through April consisted of $72.5 billion incurred by non-bank institutions and $13.4 billion by banks. The country`s debt-to-GDP ratio is currently 28.2% compared to 151.2% in the 1997/1998 period, while the ratio of short-term debts to foreign exchange reserves currently stands at42.6% compared to 142.7% in the 1997/1998 period.
Java Trans Toll Road Completed in 2014
Industrial Exports to Grow 8.3% Indonesia`s industrial product exports are projected to grow by 8.3 percent in each of the next five years to reach $134 billion in 2015, an official said. "Exports can grow at a faster pace thanks to rising investment in the manufacturing sector which will eventually boost the volume and types of export products," Director General of International Industrial Cooperation at the Industry Ministry Agus Tjahajana said here last week. In the year to April industrial product exports rose by 35% to $38.7 billion from a year earlier. The figure was expected to increase to $98 billion at the end of this year, he said. He said Thailand, Malaysia, the Philippines, China, Japan, South Korea, the United States and Australia would be potential markets for Indonesian products. The government, he said, would make every effort to improve infrastructure to spur exports. In addition, it would also attract investment from countries producing high-technology products.
The Java trans toll road will support the implementation of the Indonesian Economic Development Acceleration and Expanded Master Plan (MP3EI).
The government has targeted the completion and operation of the Java trans toll road in 2014 supporting one of the important economic corridors on Java island, a deputy minister said. "An express way in the Java northern coastal area (Pantura) is one of the priorities the six economic corridors. We wish to develop the Jakarta-Surabaya route into a seamless flow," Deputy Transportation Minister Hermanto Dardak said after witnessing the signing of the amendment
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between PPJT and three Toll Road Business Agencies (BUJT) and the Toll Road Arrangement Agency (BPJT) here last week. The Java trans toll road will support the implementation of the Indonesian Economic Development Acceleration and Expanded Master Plan (MP3EI). Hermanto said while the government sustainably prioritize the JakartaSurabaya national corridor by improving four lanes, conflicts with local traffic still often happens so
that it was still necessary to build toll roads as an alternative. "Therefore toll roads are not merely a business matter, but also public roads," he said. He added that the Cimanggis-Cibitung stretch is playing a very strategic role to solf traffic jams in two corridors, Jagorawi and Cikampek toll roads. "Upon completion, it will contribute to solving traffic jams in the two corridors. Thus, from Cikampek traffic could go straight to Jagorawi without using the Ci-
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kunir outer ring road (JORR)," he said. BPJT chief A Ghani Ghazali said that with the signing of the amendments of the three PPJT, the PPJT amendment of only 10 of the 24 toll roads to be evaluated by the government have yet to be signed. "Only 10 are left because seven stretches have already been covered on June 7, 2011, then four stretches on June 28, 2011, and the latest three bringing the total to 14 toll roads and the remaining 10," he said.
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July 12, 2011 A7
The Economy Aceh Gets Rp 20 t for Economic Growth Aceh is set become an agro province and be able to speed up its economic growth in 2014 and 2015 Aceh province has received Rp 20 trillion in development funds from the central government to expand and accelerate economic development, Aceh Deputy Governor Muhammad Nazar said. The assistance was part of efforts to develop Indonesia into the world`s seventh largest economy, he said here on Sunday.
He said the aid had been put in the plan for the expansion and acceleration of Indonesia`s economic development until 2045. "Of the total, Rp 3.5 trillion has been used to build a hydro power plant in Peusangan, Central Aceh district. The project is scheduled for completion in 2015," he said. He added the funds would also be used to build an international port at Krueng Geukuh, North Aceh district, a Lampulo port in Banda Aceh, and Idi port, East Aceh district, as well as to finance a development project in the
province`s western coast. "God willing, the development projects will be started next year," he said.He added the aid would also be used to build a rubber factory, palm oil industry and the agricultural sectors. Aceh is set become an agro province and be able to speed up its economic growth in 2014 and 2015, he said. He expressed his belief that Aceh endowed with fertile land and water sources would contribute to the Indonesian economic growth outside the oil and gas sector.
Kalimantan to Have Ferronickel Industry Chinese state-owned company Dafeng Port Group plans to set up a ferronickel industry in Kotabaru, South Kalimantan with a production capacity of 200 million metric tons a year. The president director of Dafeng Port Group Co. Ltd., Ni Xiangrong, said here on Saturday the Dafeng Port Group Co. Ltd. has successfully developed an integrated economic zone in China and plans to build a ferronickel industry and
INFRASTRUCTURE GROWTH: Coordinating Minister for Economics Hatta Rajasa said that in 2010, the budget for infrastructure was less than Rp100 trillion, but this year it has exceeded Rp100 trillion, including budget allocation for power plant construction. The government has asked the private sector and state firms to help with infrastructure development in the form of Public Private Partnership, which is expected to reach Rp3.500 trillion until 2014, excluding the state budget. The President Post/Nandi Nanti
its support industries in Kotabaru. "Kotabaru is chosen because it is relatively conducive and rich of natural resources and has quite good infrastructure," he said.
to prepare skilled workers, workshops and other supporting industries. "At the initial stage Dafeng Port Co. Ltd. will invest around $240 billion," he said.
Besides a ferronickel industry Dafeng Port Croup Co.Ltd. also plans to build a coal-powered electricity plant with a capacity of 150 megawatt. The company also plans to build a vocational school
He said Dafeng Group would cooperate with local partner PT Sebuku Iron Lateritic Ores (SILO) with regard to nickel raw materials and coal fuel supply and other supporting facilities.
Govt Names Two Winners of CBM Block Tender Of the 18 offered document purchased by investors, only four firms were interested in three blocks, namely Melak Mendung I, Melak Mendung II, and Melak Mendung III. The government announced on Thursday two tender winners of a coal bed methane (CBM) gas project with a first-three year investment of $20.34 million. Director General for Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM) Evita Legowo said on Thursday that Ephindo Energy Private Limited was the winner for Melak Mendung I gas block. "In the meantime, Deep Industries Limited-Moner Ispat & Energy Limited consortium won the Melak Mendung III gas block tender," the director general said. She said that the $20.34 million investment would cover two studies of geology and geophysics worth $1.1 million and the drilling
direct signature bonus of $3.26 million," Evita said, adding that the signing of the contracts for the two CBM projects would be done on July 25, 2011.
Evita Legowo
Up to now the government has signed 32 CBM block contracts worth $213.37 million and signature bonuses valued at $41.8 million.
of 14 wells worth $9.55 million. Besides, investment on 11 exploration wells valued at $8.68 million and first phase pilot projects consisting of 11 dewatering and 11 production test worth $1 million. "The government will receive a
During a regular auction on the CBM projects that proceeded from January 10, 2001 to May 9, 2011, the government put seven blocks on tender, namely Kampar I, Kampar II, Palalawan I, Palalawan II, Melak Mendung I, Melak Mendung II, and Melak Mendung III. Of the 18 offered document purchased by investors, only four firms were interested in three blocks, namely Melak Mendung I, Melak Mendung II, and Melak Mendung III. "After evaluation, only two investors were declared winners. The bidder for Mendung II did not meet the administrative requirements," Evita said. Up to now the government has signed 32 CBM block contracts worth $213.37 million and signature bonuses valued at $41.8 million.
State Subsidizes Rp 18.80 t for Fertilizers The government has decided to allocate Rp 18.80 trillion for fertilizer subsidies in the revised 2011 state budget, an increase of Rp 2.42 trillion compared with the 2011 state budget. Under the 2011 state budget, budget allocations for fertilizer subsidies are set at Rp 16.38 trillion, according to the main data of the 2011 state budget
and the revised 2011 state budget at the Finance Ministry made available on Thursday. Meanwhile, budget allocations for seed subsidies under the 2011 state budget and the revised 2011 state budget remain unchanged at Rp 120.30 trillion, and so do the budget allocations for food subsidies which reach Rp 15.27 trillion.
Fertilizer subsidies are still needed to help achieve agricultural production target for 2011. The government has set a 2011 target of ground dry rice grains production of 68.8 million tons, corn 22 million tons, soybean 1.01 million tons and sugar 3.87 million tons. Earlier, Finance Minister Agus Martowardojo said changes in budget items would prop up a
budget deficit. He said a deficit in the draft revised 2011 state budget would reach 2.1% of the gross domestic product compared to 1.8% in the 2011 state budget. "I think the deficit in the revised 2011 state budget will reach 2%. So if it misses the target of 2% there will be a range of plus and minus 0.1%, namely 1.9-2.1%," he said.
RI Set to Become E. Asia Auto Parts Base
Pertamina to Spend Rp 37 t on New Energy
BI: Capital Inflows Still High
The inceasingly bright growth prospects of Indonesia`s automotive market are boosting the government`s belief that the country can eventually become a car parts industry base for East Asia, chief economic minister Hatta Rajasa said. "If we consistently consider the idea that Indonesia is an ideal place for automotive companies to base their car parts industries in, and continue to maintain our automotive market growth, it is not impossible that in the not too distant future our automotive industry will become the biggest not only in Southeast Asia but East Asia," the coordinating minister for economic affairs said here on Friday.
State oil and gas company PT Pertamina has set aside Rp 37 trillion in funds to find new energy sources to anticipate a depletion of supplies from the existing energy sources in 10-15 years` time. Pertamina still import oil and gas to meet domestic energy needs, Pertamina Vice President for Corporate Communication Mochammad Harun said here last week. "To meet the energy needs while at the same time curbing imports there must be exploration. That is why Pertamina continues to find new energy sources. This year we will spend an estimated Rp 37 trillion on the activity," he said. A great chunk of the investment would go to the upstream oil and gas sector, he said.
Bank Indonesia (the central bank/BI) has predicted that the risk of capital inflows will remain high and can threaten financial system stability if a sudden reversal of `hot money` in state debt securities cannot be curbed. The high access to global liquidity funds had raised the prospect of capital inflows to emerging markets including Indonesia, Bank Indonesia spokesman Difi A Johansyah said here last week. "Capital inflows to Indonesia remain high thanks to strong domestic economic fundamentals and interesting yields," he said. Strong capital inflows to Indonesia would continue, the more so because the country was one step away from investment grade, he added.
He made the statement in his address opening the 19th Indonesia International Motor Show (IIMS) 2011. But Indonesia could become a strong automotive parts industry base in the world and maintain its bargaining position as such only if it could forge a good connectivity between automotive and infrastructure industries, heighten efficiency at production levels and ensure the continuity of industrial feed stock supply lines, he said.
Pertamina had so far got oil sources from new oil fields in a number of areas including acquiring oil fields from oil companies whose contract of work had expired, he said. To date, the country`s crude oil output stood at 1.2 million barrels per day while its oil consumption reached 3.5 million barrels per day, he said. "So it is not true that Indonesia is rich in oil. We must find new sources or spend money on importing oil," he said.
Difi said the strong capital inflows were reflected by foreign holding of state debt securities which reached an estimated Rp 242 trillion or 33.8% of the overall state debt securities issued. Meanwhile, foreign investment put in Bank Indonesia Certificates (SBI) at the central bank reached Rp 60.3 trillion or 33% of the overall SBI amounting to Rp 189 trillion.
The President Post
A8 July 12, 2011
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Around Jababeka French Company CMA-CGM Heaps Praise on Cikarang Dry Port CMA/CGM has received positive feedback from their customers about CDP, especially from the import side, major corporations in Cikarang Area, inbound cargos, etc.
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ikarang Dry Port is a one-stop service for cargo handling and logistics solution for international export and import as well as domestic distribution. It provides integrated port and logistics services with dozens of logistics and supply chain players, such as exporters, importers, carriers, terminal operators,
container freight station, bonded warehouse, transportation, third party logistics (3PL), empty container depot as well as banks and other supporting facilities. Being the extension gate of Tanjung Priok International Port, document formalities for port clearance and customs clearance willl be completed in the Cikarang Dry Port. It is like bringing port to the
It is helping us to solve the issue that all of us are facing: road congestion and terminal congestion.” Francois–Joseph Ossude President Director of CMA-CGM Indonesia
industrial manufacturing region, that serves both as a Port of Origin and Port of Destination. It is strategically located in Jababeka Industrial Estate, which lies in the heart of the biggest manufacturing zone of west Java, as well as the country, home to more than 2,500 industrial companies, both multinationals and small and medium enterprises (SME). Approximately 200 hectares are allocated for the dry port which is easily accessible by highway and railway system. Recently, the team interviewed CMA CGM (Compagnie Maritime d’Affrètement - Compagnie Générale Maritime), one of the largest shipping company that opened its services at CDP. CMA CGM is the world’s third largest container shipping company and is ranked number one in France. The Group today offers a complete range of activities including shipping, handling facilities in port as well as logistics on land. Its main objective is to offer customers all over the world a proactive, innovative service which reconciles quality and high performance with protection of the environment. President Director of CMA CGM Indonesia, Francois–Joseph Ossude said that CDP as an additional infrastructure is the extension of Tanjung Priok Port; it will solve customers’ problems in developing industrial and economic corridor. He said, “it is helping us to solve the issue that all of us are fac-
ing: road congestion and terminal congestion.” Until now, CMA CGM has received positive feedback from their customers about CDP, especially from the import side, major corporations in Cikarang Area, inbound cargos, etc. “They are looking for improvement of productivity and efficiency. Till now there are no complain, we can say that we find the team very cooperative and really willing to develop the product,” explained Francois. According to Francois-Joseph Ossude, the growth of industrial sector is very positive. “We can see all announcements made by the Indonesian government of all the permits for investment whether they’re from China, Korea, also from Japan. So the potential growth for the next 10 years is very high,” he said. “The potential here is still enormous to be further developed, related to import or export and with all the investment coming. As you can see throughout Jababeka industrial park, the park is completely full and all the new land is already totally occupied so this is very potential,” he added. “If the dry port can also be responsible for service quality, shorten the delay between packing of boxws, I’m sure it will be successful. And we are willing to participate and join together with Cikarang Dry Port in order to achieve that,” he concluded.
7 Prominent Sculptors in The President Lounge of Menara Batavia, Jakarta
ON NOTIONS AND EMOTIONS By Chandra Johan
Sculpture art exhibitions are quite rare here as they are mostly dominated by painting. The exhibition which presents seven Indonesian female sculptors at The President Lounge of Menara Batavia is a synergy between art and business, between artists and PT JABABEKA. In short, an exhibition one should not miss. The seven Indonesian female sculptors that take part in the exhibition at The President Lounge of Menara Batavia, Jakarta are prominent artists in Indonesia's contemporary visual art scene. They are Dolorosa Sinaga, Iriantine Karnaya, Edith Ratna, Titarubi, Graziella Sara Renjani, Iness and Yani Mariani Sastranegara. They emerge when gender remains a big issue but at the same time demand for contemporary art works is rising. As often experienced by females in other parts of the world, female artists are often faced with situations that are not meditative. The representations of the females’ perspectives are not as smooth as communication channels tend to spread only the aspirations of the male counterparts—this is the bitter reality faced by women artists. We know many female artists with potential, but only a few have been given recognitions. This is because the paradigm of fine arts is always based on observations on the developments executed by male artists.
However, we have seen the views shifting in the past few years, and this is supported by the activities of various female artists who have produced serious and strong works, both in terms of perspective concept or creation techniques. Characteristics and strengths of their works result in interesting issues in the context of Indonesian contemporary arts today. For example, in the past few decades women had only been used as objects in men's art works, for their body, beauty, sensuality, identity and so forth. We forget that they also have distinctive views about themselves, about the body, about beauty, sensuality, identity and even about men, about life, about the world and beyond. Through Notions and Emotions as the theme of this exhibition, we will see interesting expressions of ideas through their works as sculptors. From the theme Notions and Emotions we find two things. First of all, the idea of Notions here shows that the work of arts is related to ideas or thoughts behind the series of works of an artist. Or, according to Piet Hein, a Dutch thinker, art is solving the problem before people formulate it. The work of art appears as a
phenomenon that has logic in itself (inner logic). But, of course it is not as simple as that. Problem of life, the struggle for life, compassion associated with humanitarian issues, for instance, including the inner logic and ideas that inspired a series of an artist's works. But, in expressing ideas, selecting materials and the style they adopt, artists purely depend on the "hand" and "feelings" (emotion). We often ignore this hand factor. Notions and Emotions includes the hands to make dictum: making is thinking. Through Notions and Emotions we learn that the process of finding ideas and expressing it in a work is actually a synergizing process between the mind (the notion), skills (hands) and feeling (emotion). This is conveyed by the seven sculptors through Notions and Emotions. Their works are rich with diversity of ideas, techniques, media and styles. Through this exhibition, we will learn that the world of art is not merely about beauty, but is also a matter of ideas, wisdom, stories, feelings and reasoning. Chandra Johan is an independent curator.
Business
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Display until August 12, 2011 /// N0. 26
BUSINESS BRIEFS
Bank Permata Expands Coop with Astra Internasional
Telkom Wins Five IHCS 2011 Awards State telecommunications operator PT Telekomunikasi Indonesia Tbk (Telkom) has won five awards from the Indonesia Human Capital Study (IHCS) 2011 for its commitment to strengthening its employees` togetherness and improving their performance. PT Telkom Operations Vice President for Public Relations Agina Siti Fatimah said last week IHCS was a special means to see the extent to which a company had applied human capital system in comparison with other companies engaged in the same industries. The awards are the Best for Human Capital Index for the category of infrastructure, utilities and transportation industry, and the Best for Employee Net Promoter Score for the category of infrastructure, utilities, and transportation industry. The others are the Best for All Criteria, the Best for CEO Commitment, and the Best for Human Capital Initiative. Agina said the company saw its employees as an important aspect in the management of the company because of their knowledge and skill. “Attitude and other individual attributes (of human capital) inherent to each employee are highly appreciated and valuable for the company and therefore, they are managed properly,” he said.
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AIRLINE INDUSTRY UPBEAT: Aviation companies see their income shrinking by about half or $4 billion to $8.5 billion, said Director General and CEO of IATA, Giovanni Bisignani. Garuda Indonesia President Director Emirsyah Satar is confident that Indonesia’s aviation industry will grow amid strong domestic market. The number of domestic passengers reaches 60 million per year.
Bank Permata will continue to expand cooperation with a number of subsidiaries of Astra Internasional such as United Tractors where it cooperates on financing of spare parts procurement and services, the bank`s director said. “We will have similar cooperation with Honda Motor and other Astra`s subsidiaries, with a cooperation scheme like that with the United Tractors,” Retail Director of Bank Permata Lauren Sulistiawati said here last week. He made the remarks on the sidelines of the signing ceremony of a cooperation with the United Tractors. A total of 44.5% of Bank Permata`s stake is owned by Standard Chattered Bank and 10.1% by the public.
President Director of PT Astra Internasional, who is also deputy chief commissioner of Bank Permata, Gunawan Geniusahardja, said the cooperation was a good start for other cooperation with other Astra`s subsidiaries using the same schemes. “United Tractors is a subsidiary of Astra which is developing rapidly so that the cooperation is expected to bring benefits to Bank Permata,” he said. President Director of United Tractors Djoko Pranoto said this year the sales of United Tractors were estimated at between Rp 5 trillion and Rp 6 trillion in line with the country`s increasing economic growth. Called the Permata Quick Cash, the funding facility is given to the clients of United Tractors in the procurement of spare parts and services of heavy equipment.
The President Post/Nandi Nanti
Duta Graha to Pay Rp 15.184 b in Dividends Private construction company Duta Graha Indah Tbk has decided to allocate 21.5% of its last year`s net profit of Rp 70.54 billion as dividends this year. The dividend payments would reach Rp 15,184 billion, DGIK President Director Dudung Purwadi said here last week. “The amount of 2010 dividend payments is larger than that of the previous year,” he said. He said the cash dividend payments were part of the company`s responsibility and appreciation to shareholders. “As a publicly-listed company, we must highly appreciate the trust given by the shareholders to us,” he said after the company`s annual general shareholders meeting. He said part of last year`s net profit would also be earmarked for retained earning as part of the company`s step to strengthen its working capital. As per June 20, 2011 PT Duta Graha Indah Tbk was 33.03% owned by PT Lintas Kebayoran Kota, 14.99% by Asiariver Advisors, 9.02% by PT Rezeki Segitiga Emas, 7.35% by PT Laksindo Aditama and the rest by the public.
PT DI Gets Order for 20 N-219s The price of an N-219 will reach $4 million
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inister for State Enterprises Mustafa Abubakar has encouraged PT Merpati Nusantara Airlines (Merpati) to cooperate in operating N-219 aircraft built by state-owned plane builder PT Dirgantara Indonesia (PTDI). “Cooperation between Merpati and PT DI will become a most favorable mutually beneficial synergy. They will soon sign a contract
Mustafa Abubakar for the production of 20 N-219s by PT DI for Merpati,” Minister Mustafa Abubakar said after a hearing of Commission VI of the House of Representatives in Jakarta last week.
Cooperation between Merpati and PT DI will become a most favorable mutually beneficial synergy. They will soon sign a contract for the production of 20 N-219s by PT DI for Merpati.”
On the occasion the government along with the House commission VI agreed to inject funds in the form of state capital participation amounting to Rp 516 billion for Merpati, while PTDI is set to get Rp 2 trillion from the 2012 state budget.
meet our demands in 2014 and 2015,” he said. He added the price of an N-219 will reach $4 million, so that some $80 million would be needed for 20 units. “We will seek the funds besides the Rp 516 billion that we will receive,” he said.
President Director of Merpati Sardjono Jhony Tjitrokusumo said he was in need of 20 new planes for expansion of flight routes. “It was planned that Merpati will have 20 planes each with 20 seats. We notice that PT DI has the capacity to
Earlier, Head of Structure Design of PT Dirgantara Indonesa Budi Sampurno said that the N-219 will be flying in 2014. Budi also said that for the first sales in 2014 the new planes will be marketed locally, 97 civil planes and 57 military aircraft.
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Business Mutual Fund Business to Expand 20%: APRDI A mutual fund businessman said the mutual fund industry in Indonesia is predicted to grow by about 15 to 20% in 2011 as the capital market in the country is experiencing positive growth. Chairman of the Indonesian Mutual Fund Managers Association (APRDI), Abiprayadi Riyanto told a discussion here recently the positive growth of the capital market would have a good impact on the mutual fund business in the future. “It is predicted that the mutual fund business in the country will grow by about 15 to 20%,” he said, adding that the increase of that volume in a period of four months constituted an encouraging achievement, Data available at the APRDI, the amount of funds in the
mutual fund industry as of April 30, 2011 was recorded at Rp 153,687 trillion, or an increase of 3.08% from that in the end of 2010, which was Rp 149,099 trillion.
PT Garam Upbeat on Production Target State salt producer PT Garam is optimistic that it can achieve the salt production target of 635 thousand tons for 2011 thanks to favorable weather. “If the weather is stable (throughout this year) we believe that we can achieve the production target of 635 thousand tons for this year,” PT Garam President Director Slamet Untung Irredenta said here last week. PT Garam which is headquartered in Surabaya, capital of
East Java province, is the only state-owned company which produces and markets salt. To date, the company has 5,700 hectares of land in the districts of Sumenep, Pamekasan, and Sampang in Madura island to produce salt. PT Garam is also planning to buy salt from farmers in Madura this year. “We plan to buy 180 thousand tons of quality I and II salt from farmers in the three districts in Madura. We intend to buy salt of quality I and II to encourage farmers in Madura to produce salt of good quality,” he said.
Alkindo Plans to Offer 150 million shares Paper converting company PT Alkindo Naratama plans to conduct an initial public offering of 150 million shares next
month to repay its debts, buy land and strengthen working capital. The shares would be offered at Rp 225 to Rp 300 each, Alkindo Naratama President Director Herwanto Sutanto said here last week. Alkindo expected to raise Rp 33 billion to Rp 45 billion in funds from the IPO, he said. The company planned to use Rp 5 billion of the funds to repay its debts to Bank OCB NISP and Bank Danamon, Rp 11 billion to buy land for its head office and plants and the rest to strengthen working capital, he said. Alkindo posted a net profit of Rp3.6 billion last year. “We have set the target of net profit for 2011 at Rp11 billion which will result among others from a 20 percent increase in production capacity,” he said. Last year, the company had a production capacity of 3,000 tons which came from its two plants located at Cimareme industrial complex, Padalarang, Bandung district, West Java.
China to Build Four Cement Plants in RI China is planning to construct four cement factories in Kalimantan and Papua with a total investment of $2.35 billion. A memorandum of understanding (MoU) on the cement factories development plan was signed by the industry ministry`s Director General for Manufacturing Industry Base Panggah Susanto and a Chinese consortium here last week. The Chinese consortium consists of Anhui Province`s State Enterprise Administration and Supervision Commission Director General Xu Chong Xin, Chairman of Prosperity Group Huang Bing Jun, and Guo Wen San of Anhui Conch Cement Company LTd. The MoU signing was witnessed by among others Industry Minister Hidayat, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan, and East Kalimantan Governor Awang Farouk. Several projects included in the MoU are among other things a cement factory to be built at Tanjung, South Kalimantan, Toeti Rahajoe, the industry ministry`s downstream chemical industry director, said. The planned total investment would reach $400 million, with
er), Sepinang, East Kalimantan, with a total production capacity of 10,000 klinker tons per day. Its investment will reach around $600 million. Two other cement factories will respectively be built in Pontianak, West Kalimantan Province, and Papua Proivnce, with investments amounting $600 million and $750 million.
The cement demand in 2010 in Indonesia was 40.7 million tons while production totaled 37.8 million tons. Demand for cement in the future is expected to increase 7-10%.” MS Hidayat Industry Minister an initial investment amounting to $250 million, she added. The second factory will be constructed at Tanah Grogot (Pas-
Industry Minister MS Hidayat welcomed China`s plan to build the four cement factories in Indonesia as the domestic demand for cement is expected to increase 7-10%. He estimated the cement demand in Indonesia in 2015 will reach 55 million ton, while the total cement productions from the existing nine cement producers are recorded at 53 million tons. The factories are located at Java, Sumatra, Kalimantan, Sulawesi and Nusa Tenggara islands. “The cement demand in 2010 in Indonesia was 40.7 million tons while production totaled 37.8 million tons. Demand for cement in the future is expected to increase 7-10%,” he said.
Semen Gresik to Pay Dividends Worth Rp1.82 t State cement maker PT Semen Gresik Tbk (SMGR) has decided to allocate 50 percent of its last year`s net profit of Rp 3.63 trillion as dividends. In total, the dividend payments would reach Rp 1.82 trillion or at the rate of Rp 306 per share, PT Semen Gresik President Director Dwi Soetjipto said here last week. The dividends included interim dividends of Rp 344 billion that had been distributed to share-
holders, he said. He said Rp 1.68 trillion of the 2010 net profit would be used for reserve fund to expand the company`s business, Rp 67.2 billion for partnership program, and Rp 72.6 billion for environmental management. Last year, the company posted a net profit of Rp 3.63 trillion, a 9.2% increase compared to Rp 3.32 trillion the year before. Meanwhile, Semen Gresik Fi-
nance Director Ahyanizarman said the company planned to set aside Rp 7 trillion to Rp 9 trillion for capital expenditures next year. The fund which would come from the company`s internal cash would be used to build a new plant in 2012, he said. “The amount of capital expenditure for 2012 is quite spectacular. The construction of the new cement plant will cost an estimated Rp 3.5 trillion,” he said.
INCREASING CAPACITY: The Jakarta International Container Terminal (JICT) will increase its capacity by half to 3 million TEUs through expansion which is expected to be completed in 2012. With the expansion, JICT will have additional stacking area of 12 hectares. There will be automatic gate to make the traffic in and out terminal more efficient. The President Post/Nandi Nanti
State Firms to Pay Dividends in Trillions State gas firm PT Perusahaan Gas Negara Tbk (PGAS) decided at its general shareholders meeting last week to allocate 60 percent of its last year`s net profit of Rp 6.24 trillion as dividends. In total, the dividend payments would reach Rp 3,743 trillion, PGAS President Director Hendi Prio Santoso said following the general shareholders meeting. He said Rp 247,244 billion of the dividends had been distributed as interim dividends on January 4, 2011 at the rate of Rp10.2 per share. The remaining cash dividends to be distributed among shareholders reached Rp3.496 trillion or Rp 144.24 per share. Meanwhile, State telecommunication operator PT Indosat Tbk said last week shareholders had agreed to pay a
ed stable growth and sustainable improvement as reflected by a 5.2% increase in operating income to Rp 19,796.5 billion compared to 2009,” he said.
Hendi Prio Santoso PGAS President Director
Harry Sasongko Tirtotjondro Indosat President Director
dividend of Rp 59.55 per share. “This means that the dividend payout ratio is 50% in which the amount is the same as last year. The rest will be used for working capital,” Indosat President Director Harry Sasongko Tirtotjondro said here last week. Indosat saw its net profit fall 56.8% to Rp 647.2 billion last year from Rp1,498 trillion a year earlier. The drop was the result of declining profit from exchange rate, high funding burden and rising depreciation cost. “But overall, in 2010 we record-
Shareholders had agreed on a change in the company`s board of directors effective September 1, 2011. Curt Stefan Carlsson will take up the post of finance director replacing Peter W. Kuncewicz.
He said shareholders also had agreed on a change in the company`s board of directors effective September 1, 2011. Curt Stefan Carlsson will take up the post of finance director replacing Peter W. Kuncewicz. Harry Sasongko Tirtotjondro will remain at his current post as the president director. “We are committed to giving a chance to Indonesian citizen to occupy (certain post). But during the period of transition shareholders are of the view that Indosat must be upgraded into a world-class company. Therefore, we need world-class personnel recruited from all over the world. We don`t want to compromise quality,” he said.
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July 12, 2011 B3
Investment Govt Mulls Tax Holiday for Investors Industries to receive the incentive were the ones that are innovative, raw materials developmentbased and capable of employing many workers such as refineries and petrochemical industries.
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he government is considering granting a tax holiday to investors in the implementation of the Master Plan for Indonesian Economic Development and Expansion (MP3EI), a minister said. Coordinating Minister for Economic Affairs Hatta Rajasa said here last week final discussions on the idea would be done at a cabinet meeting this month. “Just now we looked into several things related to the facili-
ty, which industries are to receive and on what criteria they could receive it,” he said after a coordination meeting on the MP3EI and Tax Holiday. The meeting was attended by Finance Minister Agus Martowardojo, Industry Minister MS Hidayat, Minister of Cooperatives, Small and Medium Businesses Syarief Hasan, Minister for National Development/Head of National Development Planning Board Armida S Alisjahbana, Transport Minister Freddy Num-
Hatta Rajasa beri and head of the National Economic Committee, Chairul Tanjung. Hatta said industries to receive the incentive were the ones that are innovative, raw materials development-based and capable of employing many workers such as refineries and petrochemical industries.
“They are under the category of innovative or renewable industries although it is not specific. So it is possible for them to be included in the sectors to receive tax allowance as we also discussed Government Regulation Number 61 in connection with tax holiday. The criteria is oriented more on structure while the implementation is tailor-made,” he said. Finance Minister Agus Martowardojo said five industrial sectors would possibly receive the tax holiday facility. “The tax holiday discussion is not yet final. We still have to prepare revisions. But there are five sectors we are trying to give a priority in our tax system,” he said.
German Investors Eye North Sulawesi JABABEKA’S PROFIT: Jababeka named Setyono Djuandi Darmono, PT Jababeka President Director (right)and Bacelius Ruru, PT Jababeka President Commissioner, in the general meeting of shareholders. The company recorded a net profit of Rp62 billion in 2010. The President Post/Nandi Nanti
Korean Duty Free Chain to Open First Overseas Outlet in RI www.dutyfreemagazine.ca
Lotte Duty Free, South Korea`s top duty free shop chain, said last week that it will open its first overseas store in Indonesia this year in an effort to expand its overseas presence. Lotte Duty Free said in a statement that it has signed a deal with Soekarno-Hatta International Airport to set up a duty free shop at the airport during the second half of the year. Indonesia`s main gateway, located on the outskirts of its capital of Jakarta, handles more than 10 million international passengers every year. “The launch of its first overseas market will further cement its status as Asia`s biggest duty free shop and pave the way for it to become one of the top three duty free
shops in the world by 2018,” the company said. Starting with the Indonesian shop, Lotte Duty Free will open more overseas markets in Asia and raise overseas sales to 40 per-
cent of its total sales by 2018, it said. Lotte Duty Free, run by Hotel Lotte Co, ranked sixth in the world with sales of $2 billion in 2010.
Malaysia Keen on Investing in South Lampung Plantations The Agricultural Development Agency of Negeri Perak, Malaysia, is interested in investing in coconut plantations in South Lampung regency. South Lampung regency administration secretary Sutono said last week that they wished to know the potential of coconut estates in the area in their visit to the region recently. He said the Malaysian agency wished to invest in processed products considering the very wide coconut plantations, and therefore they have no worry about short-
ages in raw material. “Besides visiting coconut plantations in South Lampung, they also visited a number of oil palm estates in the province also with investment high potentials,” he said. Earlier, the group had inspected a number of coconut estates and the products of processed coconut like fibre, coconut shell charcoal, and handicraft goods made of coconut stem. The head of the Malaysian agricultural development agency Razi Manan said besides making an
inspection, they also wished to make a comparative study on the uses of the coconut trees in the area. According to data, coconut estates in South Lampung covered 35,351 hectares with a production of 33,370 tons per year, while productivity reached 1,045.5 kilograms per hectare of the 57,127 farmers. Hybrid coconut covers 2,611 hectares with a production of 1,774 tons per year, and productivity of 852 kilograms per hectares of the 2,440 farmers.
Pelindo III to Invest in Support of MP3EI Seaport management company PT Pelabuhan Indonesia (Pelindo III) will invest trillions of rupiah to support the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). “To help the government realize MP3EI, we are going to optimize the operation of Tanjung Perak Port`s Jamrud terminal and Teluk Lamongan port in Surabaya,” PT Pelindo III President Director Djarwo Suryanto here last week. He said the effort to implement
Djarwo Suryanto the MP3EI in Pelindo III`s opertaional area, especially at Jamrud terminal, will be made by procuring six “Harbor Mobile Crane/
HMC” units. “The procurement of the heavy-duty equipment is to step up loading and unloading activity in the port area so as to help improve the national economy, especially in East Java,” he said. “We are optimistic that by September 2011 all of HMC units will be fully operational and thus helping to increase the productivity of loading and unloading activities here,” he said.
A number of businessmen based in Berlin, Germany, have expressed interest in investing in renewable energy, tourism and trade in North Sulawesi, a provincial government spokesman said. “North Sulawesi Governor SH Sarundajang has signed an agreement with several Berlin investors during the former`s visit to Berlin recently,” Christian Sumam-
pow, head of the provincial public relations department, said here last week.
nesian ambassador to Germany Eddy Pratomo to North Sulawesi last month.
Governor Sarundajang met with five German businessmen at the Pricewaterhouse Coopers AG building, in Berlin on June 28, 2011 to sign a Memorandum of Understanding (MoU) on renewable energy, tourism and trade. The meeting between Sarundajang and the Berlin businessmen took place following a visit of Indo-
Governor Sarundajang in his presentation on North Sulawesi`s potentials for trade and investment cooperation convinced German businessmen Norbert Oefner, Christof Fleischmann, Dr Kristen Verbakel, Volker M. Dornblut and Josef Tarnadi about the good invevstment opportunities in North Sulawesi, especially in the
energy sector. “Essentially, the German businessmen expressed readiness to invest in North Sulawesi, and they even decided to visit North Sulawesi by the end of this year,” Sumampow said. The North Sulawesi governor had visited Germany at the invitation of Ambassador Eddy Pratomo, the spokesman said.
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B4 July 12, 2011
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Property Jakarta Condominiums in Q2 Increase by About 1.8% from Previous Period With conducive economic condition, developers are in pace to build new condominium projects, as indicated by more new projects being launched since 2010. With the growth of supply moving at significant rate, demand has been able to absorb the offered supply even though at a slower rate.
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ndonesia’s economy remained robust during the second quarter of 2011, with the GDP growth figure forecast at 6.4% for the period. The Rupiah further appreciated quarter-onquarter by 1.2% against the USD to reach 8,598. During 2Q, prices increased by 0.12%, with YoY inflation recorded at 5.98% (still within Bank Indonesia’s target range of 5% ±1%). Year-to-date FDI realization totaled $4,395 million, while the 9 month’s SBI rate during the quarter averaged at 7.36%.
CBD OFFICE Both enquiry levels and leasing activity within the Jakarta CBD office market continued at higher levels during the second quarter. Enquiries for Grade A and B office buildings mainly came from existing tenants seeking to expand or relocations to buildings with adequate space to meet such expansion. Interest in Grade C buildings was mostly for smaller requirements of below 100 sqm, generally from newly established companies, or relocations from outside the CBD area. The net take-up of 89,300 sqm recorded during the second quarter brought the total net takeup of CBD offices for the first six months of the year to 171,800 sqm, some 78% higher than in the same period last year. Grade A office buildings continued to enjoy the highest net take-up (88% of the total) as some major tenants took physical occupation of premises they had committed to earlier, within buildings located in the Jl. MH Thamrin area such as UOB Tower and The Plaza. The overall CBD occupancy rate rose again in the second quarter by 2.2% to reach 89.4% as at the end of June. Newer buildings continued to see improving occupancy during the review period. Grade A buildings experienced the highest increment of 3.8%, followed by Grade B buildings of 1.2%, whilst in contrast, Grade C buildings saw a slight overall decrease (of 0.2%) due to high vacancy within Patra Jasa Building (following the earlier relocation of BP Migas).
CONDOMINIUM SUPPLY, DEMAND, SALES RATE, 2005-2011Q2 Sales Rate
Units 100,000
96%
90,000 80,000 70,000
The average gross rental (base rent plus service charge) within the CBD office market increased over the quarter by 0.8% to Rp 152,400 per sq.m per month. In USD terms, the average gross rental increased by 2.1% quarter-on-quarter to $17.73 per sqm per month. Several landlords were able to increase their base rental rate for new tenants, in line with the limited vacancy in their buildings. Based on building grades, Grade B and Grade A offices achieved gross rental increments of 1.5% and 1.2% quarter-on-quarter respectively, whilst Grade-C offices increased by 0.9%.
CONDOMINIUMS With conducive economic condition, developers are in pace to build new condominium projects, as indicated by more new projects being launched since 2010. With the growth of supply moving at significant rate, demand has been able to absorb the offered supply even though at a slower rate. The newly launched projects were still dominated in nonCBD area, especially in South, North, and West Jakarta as well as greater Jakarta such as Bekasi and Serpong area. The newly launched condominium projects in these areas were mostly lowermiddle and middle segment developments. The cumulative sales rate of the existing condominium was recorded at 94.9%, remaining the same as that in the previous quarter. The number of sold units, however, increased by about 1.5% QoQ and 8.9% YoY to 77,627 sold units. About 60% of the sold units in the existing condominium were dominated by investors, especially in the upper-middle segment projects, and the remaining were owner occupied, mostly in the middle and upper segment developments. The pre-sales rate of the proposed condominium projects stood at 62.4%, increased by 1.7% QoQ and 2.8% YoY, with the number of pre-sold units of 25,871 units. Upper-middle and middle segment condominiums recorded good pre-sales rates, at 64.7% and 62.5%, respectively.
94%
60,000 50,000 40,000 92%
30,000 20,000 10,000
90%
0 2005
2006 Cum Supply
Total cumulative supply of Jakarta condominium projects in the 2nd quarter of 2011 increased by about 1.8% from that in the previous quarter to 81,797 units, with the completion of Royal Mediterania Garden (Lavender tower) and The Park Residences. Meanwhile, the completion of Menara Latumeten, City Garden and Casablanca East Residence brought the total cumulative supply of low-cost condominium projects to 17,164 units The newly launched projects during the review quarter were Sherwood Residence and Green Bay Seaview (Tower K), Pluit Seaview in North Jakarta; The New Ambassador Suite tower of ST. Moritz and Sky Terrace in West Jakarta; Admiralty Apartment at Fatmawati in South Jakarta; Enviro Apartment Jababeka and Grand Centerpoint in Bekasi; and Serpong Greenview in Tangerang. These newly launched projects brought the total proposed supply to 41,439 units and total proposed low-cost condominium projects to 26,706 units
INDUSTRIAL Having achieved the largest quarterly take-up in the last 5 years in 1Q 2011, the quarterly net demand during the 2nd quarter fell by over 40% to about 188 Ha. However, on annual basis, the quarterly net demand grew by almost 90%. With the above activities, the cumulative sales rate increased to 76.4%, from 74.3% in the previous quarter. SFBs & Warehouses for lease in the review quarter also recorded a relatively strong demand. Similar to the trend of the previous quarters, industrial estates in Bekasi and Karawang & Purwakarta areas remained as the preferred lo-
2007
2008
2009
Cum Sales
cations with almost 90% of the total transactions in the review quarter occurred in these areas, and the balance was absorbed by estates in Serang and Tangerang. Major demand in this quarter was still dominated by foreign industrialists such as Japan with several main business lines, including automotive related sectors. However, new supplies are expected to continue entering the market. With the no additional supply, the total cumulative supply of industrial land in the Greater Jakarta area during the review quarter remained at about 8,700 Ha. In-line with the strong demand, the asking price of the industrial land during the review quarter continued to increase. The estimated average achieved land price in Rupiah term increased to about Rp. 878,000 psm (+9.8% QoQ). In US$ term, the average price increased to $102 psm. (+11.1% QoQ).
RENTAL APARTMENT The 2nd quarter of 2011 marks the beginning of an upward trend in rental rates, demand and occupancy for the service and purposely build rental apartment sub-sectors. In the condominium for lease market, there is a slight drop in occupancy due to an increase in supply, however with robust economic climate in Indonesia, demand and rental rates remained strong. On this 2nd quarter, we see a trend that most of the new demand generators are coming from the local business travelers and government agency, whereby majority inquiries are for the service and purposely build rental apartment. Aggregately, foreigners still dominates this market making
2010
2011Q2 Sales Rate
up 78% in total demand for both of these two sub-sectors. At the end of the 2nd quarter, we see an increase in the supply of the service apartment sub-sector with the newly operated service apartment in Permata Hijau. At the same time, the forecast completions of the H-Tower (a mixeduse development) in Kuningan by the end of this year will also further increase the supply of the service apartment sub-sector. As for the purposely build rental apartment, there is no new completed project coming in this quarter. The increase in demand for the service apartment sub-sector mostly comes from the new supply of Bellezza Suite with an average occupancy of 75%. Other queries for this sub-sector also arise from the banking and local government body, which needed space for seminar or training purpose. The purposely build rental apartment sub-sector’s demand mostly originates from the newly arrived expatriates to Indonesia. These tenants include many Japanese, Koreans, some Chinese and Western workers. In both of these sub-sectors, foreigners still make up majority of the demand with 86% for the purposely build rental apartment and 73% for the service apartment. In the condominium-for-lease sub sector, the occupancy rate experienced a decline due to huge supply in the last two quarters, with a total of about 1,571 units that are still pending to handover, fit-out and market the units. In terms of the supply for the purposely build rental apartment sub-sector, there is no new development coming in this quar-
ter thus total supply remained the same at 2,363 units. Within the service apartment sub-sector, we’ve included The Bellezza Suite in this quarter’s supply which makes up an additional 112 units to the total supply. This new service apartment is located in Permata Hijau and managed professionally by Maven Hospitality, a local management company. Another new supply comes from Aston Marina which added 30 new units of service apartments to the market consequently making the total supply to 3,889 units for the 2nd quarter of 2011. With the anticipation of the H-Tower being completed by the year end, this new mixed-use development will add an additional 153 supply for the service apartment subsector. The new service apartment will be managed professionally by the Ascott Group.
RETAIL The annual event of Jakarta Great Sale had encouraged tenants to open new outlets before the event started in mid-June 2011. Anchor/big tenants which opened new branches in existing centers included Matahari Department Store in Mal Artha Gading, Electronic Solution in Pasaraya Blok M, Muji in Grand Indonesia, and Best Denki in Mal Ciputra. Many F&B retailers have also been witnessed to open additional outlets, such as Burger King in Blok M Plaza, Mal Sunter, and Mal Ciputra; Yoshinoya in Plaza Semanggi, Pondok Indah Mall and Mal Taman Anggrek; Paradise Dynasty, Espressamente Illy, De Luca, and Monolog in Plaza Senayan; Fashion Pasta, Sop Ikan Batam, Dapoer Prana, and Java Bean in Citiwalk Sudirman; Mad For Garlic in Grand Indonesia; Fish&Co, Pancious, and Seoul Korean Restaurant in Emporium Pluit Mal; Pandan Village, Teritorri Teriyaki, Spinelli Coffe,
and Fatburger in Pondok Indah Mall etc. As of June 2011, total retail supply in Jakarta stood at 3,486,900 sqm, comprising 2,365,500 sqm (67.8%) within retail centers for lease and 1,121,300 sq.m (32.2%) in strata-title retail centers. CBD and North Jakarta continue to contribute the largest portions of supply at 736,800 sqm (21.1%) and 736,600 sqm (21.1%), respectively. South and West Jakarta follow at 658,900 sqm (18.9%) and 618,700 sqm (17.7%) of space respectively, whilst Central and East Jakarta comprise 439,900 sqm (12.6%), and 295,900 sqm (8.5%) of the total supply. Through to the end of 2011, a further 114,100 sqm of retail space is expected to enter the market. Almost all (96.4%) of this future supply will be centers for lease, with only 3.6% of strata-title space. Should these proposed new centers meet their completion schedules, total supply within Jakarta will reach 3,599,800 sqm by the end of the year. Rental rates were relatviely stable during the review period. Average base rentals were recorded at Rp.602,500 per sqm per month or a slight increase of 0.4% (QoQ) or 0.9% (YoY) for specialty shop units Service charges ranged between $10.00 and $14.50 per sqm per month (Rp.72,500 to Rp.130,500). The concessionary exchange rates ranged between Rp.7,000 and Rp.9,000 per $1.00. Additional retail supply through the end of 2011 will come from 6 retail centers, namely Kuningan City, Ancol Beach City, Tebet Green, Grand Paragon, Qioz+ (Kalibata City Square), and Jembatan Senen Jaya. Most of these supply are retail centers or supporting retail facilities within the mixed-use developments.
About Cushman & Wakefield Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 60 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, residential, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www.cushmanwakefield.com.
The President Post
B6 July 12, 2011
www.thepresidentpost.com
Automotive Mercedes Benz S-Class with CGI Technology Makes Debut The new S 350 and S 500 Mercedes-Benz models fulfill the demand for high performance luxury cars in Indonesia, which are not only powerful but also environtmentally friendly.
M
ercedes-Benz’s SClass S 350 and S 500 models are equipped with CGI technology (Charged Gasoline Injection) engines. The technology is said to improve the engines’ power but are still fuel- efficient and environmentally-friendly. The engine embedded in the new S-Class is in contrast with previous models of non-CGI. Thanks to direct fuel injection technology with multiple thirdgeneration multi-injection and sparks, it is able to reduce exhaust emissions by 24% and increasig performance up to 12% on
configured V6 and V8 engines. The S 350 CGI model features the new V6 engine change angle from 90 degrees to 60 degrees. In addition, the 3498 cc engine is capable of burst power 306 hp, up 12.5% from 227 hp and a 5.7% increase in torque to 370 Nm (previously 350 Nm). Fuel consumption is 13.2 kilometers per liter (measured according to European standards). The CGI model S 500 has a V8 engine, 4663 cc, with bi-turbo charging capacity, enabling it to jump-start its power up to 12% from 338 hp to 435 hp. It can also accelerates 0-100 kph in 5 sec-
onds. Its fuel consumption is efficient at 10.8 kpl. The Mercedes-Benz S 350 CGI is priced at Rp2,019 billion while the S500 CGI Rp2,699 billion. Both models are available in the entire network of authorized sales of Mercedes-Benz Indonesia and are produced locally. The sales target is 350 units by the end of 2011; up to now 150 units have been sold. More than 3000 units of SClass have been marketed in Indonesia since its first official introduction in 1996. It achieved the highest sales record on 2010 with a total of 464 units sold. From January till June 2011, the S-Class has mantained its dominance in the upper luxury car segment with 72% share of the market. “The CGI technology fits nicely with the theme of IIMS 2011,”
Daihatsu’s Retail Sales up 21% The sales of Daihatsu cars in Indonesia during the first half of 2011 rose 21% to 64,951 units, compared to the same period last year with a 15.5% market share, a Daihatsu executive said. “Xenia is still the biggest contributor with a share of 51% or 33,349 units,” said Marketing Director of PT Astra Daihatsu Motor (ADM) Amelia Tjandra here on Sunday. Daihatsu ranks second after Toyota`s domestic car market in the retail sector. Amelia said Gran Max contributes 28% of total sales with 18,014 units. The next contributor is Terios, which is in the medium SUV market, with 16% or 10,239 units. Luxio and Sirion Daihatsu, respectively, posted sales amounting to 2,809 units and 540 units. “Auto sales in June 2011 had already shown a recovery from that before the tsunami in Japan,” she said.
target could be achieved,” she said. She noted domestic car sales in the wholesales market last month reached 70,157 units, growing by 14.9% from May of 61,055 units,
while sales in the retail market rose 11% to 70,720 units. Total car sales in the first half of this year increased 13% to 417,328 units, compared to that of the same period of 2010 which totaled 370,214 units.
Auto 2000 Sales Reach 118,000 Units www.gustomobil.com
Auto 2000, she said, was still the Toyota dealer with the biggest sales with a contribution of 77%. Toyota`s main dealer Auto 2000 sold 118 thousand cars up to the first semester of 2011. “In June we sold 20,689 cars. The biggest sales were still on the Avanza and Innova cars,” Marketing Communications of Auto 2000 Cahaya Tantriani said in Jakarta on Wednesday. Auto 2000, she said, was still the Toyota dealer with the biggest sales with a contribution of 77%. The Toyota sales up to June 2011 reached 152,000 units, up 9% compared to last year`s same period. Toyota is a domestic car market leader with a market share of 37%, and last month its sales reached 26,000 units. In the meantime, Tantri said, Auto 2000
has opened orders for New Kijang Innova. This model will be launched at the Indonesian International Motor Show 2011. Auto 2000 also opened orders for New Fortuner which will also be released by the IIMS. Auto 2000 offers trade-in of Avanza, Rush, and Yaris cars which have been used for five years, with New Innova and New Fortuner cars. In the meantime, Marketing Director of PT Toyota Astra Motor (TAM), Toyota sole agent and trade
The new S 350 and S 500 Mercedes-Benz models fulfill the demand for high performance luxury cars in Indonesia, which are not only powerful but also environtmentally friendly.
The CGI technology fits nicely with the theme of IIMS 2011.” Rudi Borgenheimer President and CEO of Mercedes-Benz Indonesia
From right to left: Roland Staehler, Rudi Borgenheimer, Yuniadi Hartono, and Yahya.
Mitsubishi Takes Over Daihatsu; Toyota Still Leads
Daihatsu ranks second after Toyota’s domestic car market in the retail sector.
According to Amelia, domestic car sales both retail and wholesales (shipping cars to dealers) are able to penetrate the 70,000 units mark in June, up from the previous figure of 60,000 units. Ameila said that in line with that developments,Daihatsu sales target this year could reach 125,000 units. “I am convinced that the
said Rudi Borgenheimer, President and CEO of Mercedes-Benz Indonesia.
mark holder, (ATPM) Joko Trisanyoto was still rather reluctant to give the details on the launching of New Innova. “Later, we will make an official statement during the launching,” he said. This year Auto 2000 has set a sales target of 235,000 units. “Sales are still good, although the automotive market is still feeling the impact of the recent tsunami in Japan and some other issues on car tax increases,” said CEO of Auto 2000 Jodjana Jody.
Mitsubishi has taken over Daihatsu in second place while Toyota remains at the top in the Indonesian national car market. “Demand for commercial cars is increasing and so our car sales are up,” Marketing Director of PT Krama Yudha Tiga Berlian Motors, Rizwan Alamsyah, said here on Friday. He said sales of light commercial cars, light trucks and big trucks have risen steeply this year
following rising price of commodities such as coal and crude palmoil. So far commercial cars are used in operational activities of mining and plantation companies. “As the leader of commercial cars we are given an advantage by the increasing price of commodities and improving national economy,” he said. He said Mitsubishi entered light commercial vehicles through Colt L300 and T120 SS while it entered
light truck market through Colt Diesel. In the double cabin segment Mitsubishi comes with Strada Triton, he said. “In the passenger car segment Mitsubishi penetrates with Pajero Sport, following the release of the Dakar variety of Pajero,” he added. At the end of 2010 Daihatsu was ranked second with sales recorded at 118,000 units while Mitsubishi is third with 106,000 units. In the first semes-
ter of 2011 Mitsubishi booked sales of 67,000 units which was bigger than Daihatsu sales at 62,000 units, making Mitsubishi ranked second after Toyota, which still dominates with 152,000 units. “By the end of 2011 we are targeting up to 110,000 units. But it seems the realization will be above that as sales have already reached 67,000 units in the first semester,” he said.
The President Post
www.thepresidentpost.com
July 12, 2011 B7
Executive Highlights Bank Indonesia has revised its 2011 growth projection upward to 6.36.8% from an initial 6-6.5%. The bank is also projecting the economy to expand by 6.6% in Q3. Bank Indonesia governor Darmin Nasution said robust household consumption and the growing contribution of investment would drive growth in the coming months. He also emphasized the growing role of foreign direct investment, which was projected to reach US$16.7 billion this year from US$13 billion a year ago, in supporting Indonesia’s economic growth. On a sectoral basis, the governor said growth would be led by transportation and communications, industry, and the services sector e.g. banking, hotels, restaurants and general trade. The central bank is currently forecasting growth of 6.46.9% for 2012. Darmin said the main risks to the Indonesian economy were external, in particular the possibility of a significant slowdown with China’s economy and the potential contagion effect from the sovereign debt crisis in Europe.
Bank Indonesia kept its benchmark rate at 6.75% for the fifth straight month on a moderating inflation outlook. After hitting a 12-month low of 5.5% y-o-y in June, central bank governor Darmin Nasution indicated that full year inflation could fall to the low-end of their 2011 forecast of 4-6%, particularly if the government does not raise subsidized fuel prices this year and the supply and distribution of basic foods can be maintained. He also highlighted easing inflation pressures in emerging markets given tightening policies implemented by their respective monetary authorities, which in turn could help curb price pressures in Indonesia. The bank further stated that the current benchmark rate was appropriate to support economic activity and maintain monetary stability amid an excess of domestic liquidity and strong capital inflows. Many analysts now say the overall dovish tone from Bank Indonesia indicates that it will maintain its benchmark rate at current levels for the course of the year. The bank is forecasting inflation of 3.55.5% in 2012.
The rupiah has been trading at a range of Rp8,500-8,600 to the dollar over the past several weeks.
Economics Coordinating Minister Hatta Rajasa said substantial progress was being made in implementing the government’s economic acceleration master plan (MP3EI). He said development of 69 largescale projects have or would start this year. These include a Rp5 trillion fertilizer plant in East Kalimantan, the Rp4 trillion expansion of Batu Ampar port in Batam, the Rp2.9 trillion, 2x100 MW coalfired power plant in Banjar Sari, South Sumatra, the Rp1.5 trillion expansion of Belawan port in North Sumatra and a new Rp1 trillion LNG terminal in South Sumatra. He asserted more than 100 other infrastructure projects worth a total of Rp700 trillion would also begin development over the next three years. Hatta said he also recently secured support for the MP3EI from China, which has set up a working group to exploit investment opportunities under the master plan; South Korea, which is eying Indonesia as a major manufacturing base for its conglomerates like Posco, Samsung and LG; and France, which is looking at investment opportunities in renewable energy. On the MP3EI’s regulatory side, the minister said his current focus was to get quick passage of a land clearance law, now under deliberation in parliament; and finalize regulations to expand tax holidays to cover a wider range of sectors including renewable energy and basis metals.
State power utility PLN has appointed Barclays Capital, Citi, HSBC Securities and UBS Securities to underwrite its planned US$1.5-2 billion global, dollardenominated bond issue later this year. PLN chief financial officer Setio Anggoro Dewo said proceeds from the debt sale would be used to help fund its capital expenditures, which have been set at US$7.7 billion this year and US$36 billion over the next five years. The money will fund new power plants and transmission lines that will raise PLN’s generating capacity by 23,500 MW to a total of 55,500 MW by 2019. As of the first quarter, the state utility reported US$5.1 billion in revenues, comprising US$3 billion in electricity sales and US$2.1 billion in government subsidies. This compares to revenues of US$4.2 billion (US$2.8 billion in electricity sales and US$1.4 billion in government subsidies) in Q1 2010. PLN’s after-tax profits for the first quarter of this year totaled US$330 million, compared to US$337 million for the same period in 2010.
Rp1.3 trillion for the Ngawi-Kertosono project and Rp600 billion for the Serpong-Cinere project. The government will also provide an additional Rp3 trillion to support construction of the Solo-Mantingan-Ngawi and Ngawi-Kertosono projects. As part of the agreement, Thiess has provided a security deposit of Rp112 billion for the three projects and will be required to secure financing for the projects within eight months. Deputy public works minister Hermanto Dardak said he expects the three toll roads to start operating by 2014.
serving more than 5,000 tenants. Last month the firm also purchased private tower operator Mitrayasa Sarana Informasi, which operates 263 telecom towers and 332 shelter-only sites with a total of 672 tenants. The latest acquisition would make Tower Bersama one of the largest tower operators in the country. The deal, meanwhile, would leave Indosat with around 13,000 telecom towers. Indosat is reportedly looking to sell another 10,000 towers later this year. Tower Bersama is controlled by Saratoga Capital, which is owned by businessmen Sandiaga Uno and Edwin Soeryadjaya. Indosat is controlled by Qatar Telecom.
Independent telecom tower operator Tower Bersama Infrastructure will acquire 4,000 towers from Indosat in a US$500 million deal.
U.K. Oil and gas firm Salamander Energy has secured a 20-year gas sales agreement India’s Universal Crescent Power with state power has signed a deal utility PLN with coal miner Bayan Resources to from its Karendan field in the purchase 100 million tons of coal over the next 15 years
Tower Bersama currently has over 3,370 telecommunications sites
Selected Instant Indicators GDP GROWTH (%)
%
Index* 2000=100
By Quarter
Year on Year 8
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INFLATION 66 CITIES
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Engineering firm Thiess Contractors Indonesia has signed amended concession agreements with toll road regulator BBJT to develop three toll road projects worth Rp11.2 trillion.
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COMMODITY PRICES
Sumatran Light US$/barrel
Mal$ per metric ton 4,250
113
Crude Oil-LHS 4,000
Palm Oil-RHS
108 103
3,750
98
3,500 $95.0 3,250
93
The three projects are the 90km Solo-Mantingan-Ngawi toll road in Central Java; the 87-km Ngawi-Kerosono toll road in Central Java; and the 10-km Serpong-Cinere toll road in West Java. The concessions are for a 35-year period. Under the terms of the deal, the government will bear all costs for land acquisition, estimated at Rp1.9 trillion for the Solo-Mantingan-Ngawi project;
starting in 2015. Bayan chief financial officer Alastair McLeod said under the agreement, pricing would be indexed to Newcastle coal prices and would vary monthly. He said the deal would support the miner’s expansion over the long-term. Bayan, Indonesia’s eighth-largest coal producer, is looking to increase output to 25 million tons per year by 2013 from its mines in Kalimantan. The miner is projected to produce around 14 million tons of coal this year. Universal Crescent is buying the coal for several power projects currently under development in India. The company also has contracts to purchase coal from Bumi Resources and Noble Resources.
88 M$ 3,107
83 78
$75.17
3,000 2,750 2,500
73 M$2,425 68
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Singapore, Taiwan and Hong Kong. Company president director Djony Bunarto Tjondro said the funds would be used to support the firm’s credit expansion. As of end-May, Astra Sedaya has extended Rp9 trillion in new financing to fund the purchase or leasing of more than 63,000 vehicles. This is up around 11% from the year-earlier period. The company is projecting Rp20 trillion in new financing for the full year. Astra Sedaya is a subsidiary of automotive conglomerate Astra International.
The Para Group has acquired Detik.Com, Indonesia’s most popular online news portal. The deal was reportedly worth US$60 million. Detik.com will be operating under Trans Corp., which is Para’s holding for freeto-air broadcasters TransTV and TV7. The group sees the acquisition as providing synergies in advertising, content and branding across its media assets, in addition to a solid revenue stream. Strong advertising income has reportedly enabled Detik.com to generate revenue growth of 3040% per year over the past five years. The firm is reportedly projecting revenues of nearly US$20 million this year. The Para Group follows in the footsteps of other media conglomerates to establish a presence in the internet media space. Hary Tanoesoedibjo’s Media Nusantara Citra (RCTI, Global TV and MNC TV) currently operates online news portal Okezone. com, while the Bakrie Group runs Vivanews.com. The Para Group is owned by business tycoon Chairul Tanjung.
Bank International Indonesia (BII) has acquired an additional 12% Automobile financier stake in motorcycle Astra Sedaya Finance financier Wahana has secured a three- Ottomitra Multiartha year, US$200 million in a Rp125 billion deal. dollar-denominated loan from an The bank purchased the shares international bank from the International Finance Corporation (IFC), bringing its tosyndicate led by tal stake in Wahana Ottomitra HSBC. to 62%. BII director Rita MirasThe bank syndicate comprised 19 banks including lenders from
4,000
In its latest policy meeting, Bank Indonesia stated there was still further room for the rupiah’s appreciation but to a relatively “limited level”, suggesting that the central bank is increasingly focused on managing capital inflows and limiting any significant strengthening of the currency over the short-term. Over the medium and long-run, analysts are making a strong case for the rupiah to see substantial appreciation. For example, a recent ANZ research report highlighted accelerating foreign direct investment; the accumulation of foreign reserves at a record pace of nearly US$5 billion per month over the past five months; and a key structural change in the Indonesian economy in which locals who have normally lacked faith in their own currency have, for the first time in six years, become a net buyer of local assets and are slowly repatriating their offshore holdings.
Bangkanai production sharing contract in Central Kalimantan. Under the deal, Salamander will supply up to 20 million standard cubic feet per day (mmscfd) of gas at an initial price of US$4.79/mscf that will increase by 3% every three years. First gas from Karendan is expected in mid-2013. The gas will be used for a power plant PLN plans to build adjacent to the field. Salamander chief executive James Menzies said the deal with PLN provided significant value, allowing the firm to extend its production sharing contract and further develop Karendan. He said the field also holds another 111 billion cubic feet of gas that has yet to be commercialized, giving Salamander the opportunity to build a niche position supplying Kalimantan’s growing domestic gas market.
ari said the acquisition was part of the bank’s aggressive growth strategy in consumer financing. Wahana Ottomitra is the coun-
try’s third-largest motorcycle financier, operating more than 200 branches across the archipelago. The company is projecting Rp7.5-8 trillion in new financing this year. It also plans to open 20-30 new branches this year. The IFC is the investment arm of the World Bank.
Leading Japanese brokerage SBI Securities has finalized a deal to acquire a 25% stake in BNI Securities for Rp114 billion. Taro Izuchi, president director of SBI Securities, said the acquisition would enable the firm to expand into Indonesia’s fast growing capital markets amid growing interest from Japanese retail investors for Indonesian stocks and bonds. The chief executive said SBI Securities would also help finance the expansion of BNI Securities in Indonesia and provide it access to Japanese clients looking to invest in the country’s capital markets. BNI Securities president director Jimmy Nyo said the divestment was a strategic move to expand the firm’s client base and secure the technological and human resources support needed to expand its operations, particularly into online and retail equities trading. SBI Securities is Japan’s largest online and retail broker. State-controlled Bank Negara Indonesia (BNI), Indonesia’s third-largest lender, will retain a 65% stake in BNI Securities following the divestment.
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
The President Post
B8 July 12, 2011
www.thepresidentpost.com
Photo Essay Business Prospects of
“Bengkel Cat Duco” Car body painting business has thrived in the capital city as the number of shops offering the service continues to grow like mushrooms. Their consumers are car owners who want to turn their cars shiny through express services and at the same time at more affordable rates.
“B
engkel cat duco”, as they are com mon ly called here, have their names plastered visibly on wooden signposts that stand erect on the side of the streets. Unlike ordinary garages, they don’t offer engine repair service; they only repair dent vehicle body and repainting. They also provide welding services, windshield installation, and sell paints and vehicle accessories. Equipped with compressors, sprays, sandpapers, putty, paints, plasters, and other necessary tools, the street mechanics are ready to operate from 8 a.m. to 5 p.m., some even still offer their services until the night falls. Every day, cars always come for repair and paint work. The mechanics work on the side of the roads, ignoring the fact that they are public spaces and that their activities often cause traffic congestions, especially during rush hours. Thus, the mechanics often have to hide from Satpol PP who try to get them off the streets. Despite frequent raids, dozens of these illegal street garages still exist and continue to grow in numbers. They not only operate in
the main streets in Kramat Raya Senen, but also in Gang Kwitang, Central Jakarta. They usually charge their customers based on the extent of damages that they fixed. For instance, they would charge a customer for about Rp500,000 for reparation of the front and rear bumpers that use medium quality materials. But such tariff can usually still be bargained and lowered to about Rp300,000400,000, depending on the level of difficulty of the work. Each month they make about Rp7 million in turnovers provided that they repair or dress at least two cars per day on average. They usually see their incomes increasing sharply ahead of and post Idul Fitri. Customers want to make their vehicles look flawless when they visit their relatives in their hometowns. They usually also polish their cars again after the holiday is over. It is no doubt that their service charge are much lower than that charged by authorized garages while their services are also much faster. However, when it comes to quality, only the customers themselves can decide whether or not they will go for express services, lower fees or for quality.
Equipped with compressors, sprays, sandpapers, putty, paints, plasters, and other necessary tools, the street mechanics are ready to operate from 8 a.m. to 5 p.m., some even still offer their services until the night falls.
When it comes to quality, only the customers themselves can decide whether or not they will go for express services, lower fees or for quality.
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The First Hi-tech Cultural Centre in the World Photos courtesy of @america
@America doesn’t only provide info about America; it also features many great events that could be useful or entertaining to Indonesian youngsters. The place is designed for Indonesian youngsters to explore, experience, and express their interests in the U.S. By Aqasha
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oes Cultural Centre sounds boring to you? I bet your first picture of cultural center is a room filled with books and decorated by a certain country’s attributes. That picture will change once you enter @America. It is the first high technology cultural centre in the world. @America is also called Public Outreach Diplomacy Centre because, unlike any other cultural centre, @America doesn’t only provide info about America; it also features many great events that could be useful or entertaining to Indonesian youngsters. The place is designed for Indonesian youngsters to explore, experience, and express their interests in the U.S. The sense of high technology in this place could be easily sensed by the blue lights at the front door. You might think, “hmm, how much should I pay to enter this place?” since it looks more like a club instead of a cultural centre. But don’t worry about paying cover charge. They will not charge you for anything here, including for the use of the facilities they have inside—it’s all free! Once you enter the door, you will be welcomed by security checking area, complete with their metal detectors—security equipments that we usually find in any international airport. Although the security check is tight enough, the blue lights around the area and the see-through lockers made by fiberglass won’t give you any other feelings but amazement. Once you pass the security area, you will find a wide space of room filled with touch screens and flat screens, complete with the sound of American music everywhere. There, you can get lots of information about America. The content of the screens will be changed regularly according to the theme. The way they package information into simple slide shows in high technology devices allows visitors to read and pick information they need. The screens make the information displayed a lot more interesting and make it easier for you
to remember. @America is not only about cool blue lights and touch screens. As a paperless cultural centre, they have changed the old-fashioned library system into e-books and iPad’s application. Now, this is what I call the right kind of encouragement for those who don’t like to read. E-books and applications in their iPads make reading become so much more exciting. Better, those iPads could be used for free. All you need to do is register yourself in the member booth and show your valid ID card. You will easily find Member Booth in the exhibition area bathed with halogen lights and numerous iPads hanging on the wall. Another high technology device that you can find in the exhibition area is Google Liquid Galaxy. This
is the 3D visualization of Google Earth with 8 big flat screens, a circular toggle and a touch screen. Google Liquid Galaxy allows you to crawl anywhere around the Earth, the Moon and the Mars. There are only four Google Liquid Galaxys in the world—three in the United States and one in @America. To make it more special, the only Google Liquid Galaxy that is open for public use is only in @ America. Big screens and the circular toggle could make you feel like you really are flying around the world! You also can find an education counselor from AMINEF right beside the Member Booth in the Exhibition Area. This booth is called “Education Corner”. They are
open every day; during weekdays they’re available at 5pm-9 pm while during weekends 11am-9pm. Here you can get information about education in the U.S. You can ask anything the counselor anything such as scholarship programs, the education system and many more, including consultation on your interest in a specific field.
your iPad. True to its name, the classroom area is usually used for small lectures or conversation class, which are held regularly. Instead of a regular white board you have in your college classroom, this one has a wide touch screen board connected right away to the internet. This device helps the classroom become more conducive for lectures.
Right across the Education Corner there’s a hallway that leads you to a classroom. Still with the touch screens and flat screens, but here you can read your iPad peacefully. In a regular day, this area is usually quite empty but filled with comfortable bean-bag couches. The classroom area is the very right spot to enjoy using
After exploring the Exhibition and Classroom areas, it’s time for fun. Go to the Performance area, where big events are held. You will see a theatrical stage with semitheatrical seats. I call it semi-theatrical seats because it’s shaped like those seats you find in a theater. But instead of luxurious leather, this one is made of green
carpet. The unique seats are even more comfortable as you can sit down in whatever sitting position you choose. You will also see a wide projector screen like the one you find in a cinema. Right on the right side of the screen you will see a Cisco screen, which is used for teleconferences with people in the U.S. In the Performance Area you will be indulged by laser and colored lights and upbeat music controlled by the TJ booth people. If you want to take a peek at the TJ booth, you will find high-tech audio and visual equipment. The equipment make the events they hold become even more enjoyable. You must be imagining how fancy this place is and thinking how much the U.S. Embassy had spent to get this off the
Another high technology device that you can find in the exhibition area is Google Liquid Galaxy. This is the 3D visualization of Google Earth with 8 big flat screens, a circular toggle and a touch screen. Google Liquid Galaxy allows you to crawl anywhere around the Earth, the Moon and the Mars. There are only four Google Liquid Galaxys in the world—three in the United States and one in @america. ground. Yes, this property is quite pricey but is worth it since some 300 people visit the site every day. The goal of the U.S. Embassy in building this place is to attract as many Indonesian youngsters to visit and to let them know
that America welcomes them in more ways than one. After just six months of operation, @America has become the place for creative public diplomacy, engaging young Indonesians on issues of strategic importance to America. Since its opening on December 2, 2010, almost 44,000 young Indonesians have visited @america to either participate in one of the 271 programs that have taken place, receive educational advising from the EducationUSA advisor on site, or learn more about American history, culture, and society. During the first six months of operation, @america has transformed public diplomacy for the U.S. Embassy in Jakarta, reaching an audiences it had never reached before and engaged them in dialogues about the United States and U.S. policy. In the future, the U.S. Embassy is focused on attracting even more young Indonesians to @america through innovative programming and better interactive contents on iPads, touch screen computers, and monitors. The U.S. Embassy also plans to reach Indonesians outside of Jakarta by integrating their constituent posts in Medan and Surabaya in @america programming and working closely with partner institutions like American Corners and Indonesian universities to broaden the scope of @ america virtual visitors.
Coffee Helps to Conserve Aceh's Environment An NGO named Conservation International (CI) Indonesia has since three years ago been introducing the "Conservation Coffee" system to coffee farmers in Takengon, Aceh Tengah district, one of the biggest exporters of Arabica coffee along with Bener Meriah district with a total production of 65 tons per year. By Amie Fenia Arimbi
On a sunny afternoon at a coffee shop in Banda Aceh city, Aceh province, four men were engrossed in a lively discussion while another man sitting next to them smiles sipping a cup of black coffee. In front of the four gentlemen lay four small plates of traditional cakes made from sticky rice, namely timpan and ondeonde. That`s a scene one usually finds when visiting a joint named Mecca`s Terrace, Aceh province. The local people has a long tradition of drinking coffee. Luckily, the habit is supported by the region`s high coffee production from hundreds of thousands of hectares of coffee plantations existing in the province. However, there is increasing concern that local farmers have started to
chop down trees in the forest to open new plantations. According to them, such action was necessary because the soil in existing plantations is gradually losing its fertility - a condition with a negative impact on the quality of the crops. The problem is that opening forest areas for plantation was against the principle of nature conservation, nowadays a focus of international attention. Responding to the concern, an NGO named Conservation International (CI) Indonesia has since three years ago been introducing the "Conservation Coffee" system to coffee farmers in Takengon, Aceh Tengah district, one of the biggest exporters of Arabica coffee along with Bener Meriah district with a total production of 65 tons per year. The term "Conservation Cof-
fee" itself refers to a system of work that allows farmers to not only improve the quality of their product but also support global efforts to save the environment. "Since 2009, CI has provided capacity building trainings for coffee farmers in Takengon on how to use natural ingredients as fertilizer and the technique of cutting down the coffee tree`s stem to boost the production of coffee fruit in the future," Publication Coordinator for CI Indonesia Fachruddin Mangunjaya said. Why did CI choose coffee plantations in Takengon as the area of their pilot project? Located in the highland area of Gayo (1,200 meters above sea level), coffee from Takengon has risen to fame for its complex flavor and thick texture. In fact, according to the cupping test system introduced by Erna Knutsen since 1974, Arabica coffee from Takengon is categorized as good coffee graded at 86 to 90 out of 100. "With such development, there is also a risk of deforestation ahead because coffee plantation is estimated to last for 30 years but then the soil gradually loses its fertility. That`s when farmers start to open new plantation fields in the forest," Fachruddin said.
He said capacity building trainings given to farmers in Takengon aim to intensify the quality of the soil and coffee tree in the plantation. "With fertile soil farmers will no longer plan to penetrate new fields to be made as plantations," he said.
Arabica coffee from Aceh Tengah is known worldwide. Apart from being proud of this achievement, we must also keep developing the business while considering the principal of conservation." Irwandi Yusuf Aceh Province Governor
Meanwhile, CI`s local project coordinator Saodah Lubis stated that apart from helping farmers improve the quality of their coffee trees, CI also encouraged farmers to plant inter-cropping plants such as orange, chili and shade trees to gain added values. "Basically, coffee trees must not be directly exposed to the sunlight or else the growth may be interrupted. Previously, farmers used to plant lamtoro as shade trees but recently we introduce mahoni and sengon trees to the farmers with consideration that the latter fetch better prices," she said. She said by having intercropping plants in the coffee plantations, farmers indirectly help the government in implementing a conservation program to tackle the negative impacts of climate change. Many farmers have already stated their positive impression towards the "Conservation Coffee"
program conducted in Takengon. Hasbullah, a coffee farmer from Bebesen village, stated the organic fertilizer system makes the coffee trees grow healthier and produce a good quality of fruit. "I also don`t have to buy chemical-based fertilizer anymore, that saves production cost," he said. Meanwhile Primanis, a farmer from Pegasing village, said before following CI`s program, he and the other coffee farmers were used to run the plantations in a traditional way. "Now after getting the knowledge about the best fertilizer for the coffee trees and the technique to pick the fruit, I feel that the quality of coffee fruits from my plantation has improved," he said. Recently, Aceh Province Governor Irwandi Yusuf expressed his support towards the conservation program for coffee plantation in Aceh Tengah district. He said the program was relevant considering that the area along with Bener Meriah district were the biggest producers of Arabica coffee in plantations covering 83,000 hectares. "Arabica coffee from Aceh Tengah is known worldwide. Apart from being proud of this achievement, we must also keep develop-
The term "Conservation Coffee" refers to a system of work that allows farmers to not only improve the quality of their product but also support global efforts to save the environment. ing the business while considering the principal of conservation," he said. According to the governor, the Conservation Coffee program is closely linked to the government`s target to reduce carbon emission and tackle the negative impact of climate change. "Based on a research, one hectare of coffee tree is able to absorb 8.07 tons of carbon per year. The number is higher than the average ability of other plants to absorb carbon, namely 1.5-3.5 tons per year. Therefore, apart from giving financial benefit to the farmers, coffee plantation also helps conserve nature by reducing carbon toxic from the air," he said.
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Technology Bubu Awards v.07 2011
The Competition to Develop Digital Industry in Indonesia IDBYTE is the biggest digital event in Indonesia, a week of engaging conference, workshop, exhibition, and Bubu Awards v.07 that covers the hottest topics in the digital industry.
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n expansion of Bubu Awards, this year’s IDBYTE WAS held on July 11-14 at the Ritz-Carlton, Pacific Place, Jakarta, it also includes the event Bubu Awards V.07 as the grand finale. IDBYTE features top global speakers in the digital industry, including Facebook, Google, Yahoo, Ebay, RIM and LinkedIn. After a series of events and road shows to major cities and campuses in Indonesia, followed by a three-day workshop as well as seminars, on the last day it closed off with the announcement of the winners of Bubu Awards v.07. Shinta W. Dhanuwardoyo, the IDBYTE chairwoman, in her speech said that the number of participants for the workshop that ran on July 11 to 13 reached
www.vivanews.com
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Digital Campaign Award:
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Web Award, with winners in each sub-category: Ngomik.com
E-commerce:
Kampungpulsa.com
News/entertainment:
Fimela.com
Corporate:
Telkomsel
Social Media:
Filmoo.com
Game:
Football Saga
Utility:
Pricearea.com
Education:
Indonesiabercerita.org
Government:
Babelprov.go.id
Culture & Tourism:
Infobackpacker.com
3.
Mobile App Award:
Bouncity
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Digital Talent Award for each sub-category: Digital Business Leader:
Agung Adiprasetyo, CEO of Kompas Gramedia
Digital Influencers:
Adrie Subono, Java Musikindo
Digital Community Leader:
Ainun Chomsun, AkademiBerbagi
Digital Marketing Plan for Startup:
Rockto.com
1,500, while for the seminar the number approached 1,000, featuring 28 speakers. “Through Bubu Awards, we want to continue our commitment to seek new talents and give awards to those who have contrib-
also a digital competition to accelerate the growth of Internet and mobile marketing in Indonesia. It was intended to be a strong trigger for the growth of the Indonesian digital industry.
Magnum Launching
Product/consumer:
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www.chip.co.id
uted significantly to the development of the digital industry in Indonesia,” said Shinta. The winners in various categories are on the list above. This year’s judges were prominent figures in the digital world,
Through Bubu Awards, we want to continue our commitment to seek new talents and give awards to those who have contributed significantly to the development of the digital industry in Indonesia.” Shinta W. Dhanuwardoyo IDBYTE Chairwoman
namely Alec Ross (Senior Advisor for Innovation to Secretary of State Hillary Clinton), Craig Newmark (founder of Craiglist.com), Johan Svanstrom (VP & Managing Director of Hotels.com Asia Pacific), Julian Persaud (Managing Director of Google South East Asia) and RohitDadwal (Managing Director of Mobile Marketing Association Asia Pacific Limited). The national judges were Andrew Dervish (Kaskus founder), Andy Zain (founder of Mobile Monday Indonesia), Erik Meijer (Deputy President Director of Bakrie Telecom), and Hasnul Su-
haimi (President Director of XL Axiata). For tabulation, Bubu Awards v.07 partnered with Ernst and Young. Bubu Awards started as the first and the most prestigious web design competition in Indonesia since 2001. In 2009, Bubu Awards successfully held the 6th iteration, entitled “The Rise of the Digital Era”. Continuing its success and foreseeing a golden era for the digital industry in Indonesia, they expanded the Bubu Awards to not only a web design competition but
IDBYTE focuses on how to make digital an integral part of business strategy and to understand the unique landscape of consumer social insight, something that Indonesia’s businesses just cannot afford to ignore anymore. As we know, the local online and mobile industries in Indonesia are growing very rapidly. The user base keeps multiplying at lightning speed. Already considered as one of the most emerging digital markets in the world, Indonesia is now ready to secure a center spot in the map of the digital world. At IDBYTE, the entire industry stakeholders are given a chance to connect together under one roof; from brand marketers, technology providers, digital agencies and experts, online portals to traditional business owners wishing to embrace digital into their businesses. It is a golden opportunity to discover new digital trends and technologies, as well as to network and share with top industry players and big names in the digital world.
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July 12, 2011 C3
Education Murdoch University Awards Honorary Professorship to RI Ambassador
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Murdoch University has awarded an Honorary Professorship to His Excellency Primo Alui Joelianto, Ambassador of the Republic of Indonesia to Australia.
His Excellency Primo Alui Joelianto
he symbolic award is in recognition of the Ambassador’s commitment to Australian-Indonesian relations and his support of the University’s work in Indonesian teaching and research. To mark the appointment, Joelianto gave a public address, Indonesia’s Foreign Policy and Indonesia-Australia Bilateral Relations, at the university on 21 July. Joelianto is a distinguished diplomat, having served previ-
ously in the Indonesian Ministry of Foreign Affairs as the DirectorGeneral for Asia Pacific and Africa Affairs, and as Director both for East Asia and Pacific Affairs and for Middle East Affairs. Since his appointment as Ambassador in Canberra in March 2009, he has worked tirelessly to advance Australian-Indonesian relations. Professor Gary Martin, Vice Chancellor of Murdoch University, said: “The appointment of Honorary Professor is offered rarely. We
regard it as a measure of our respect for the recipient, and a recognition of their role and contribution – past, present and future – to the advancement of the University in a particular field – in this case Indonesian studies. “Indonesia is a key area of interest for Murdoch. Our Asia Research Centre is an international leader in the study of East and South East Asia and is engaged in a number of research projects focused on Indonesia. “Our Chair of South East Asian
Studies, Professor David T Hill, is also Consortium Director and Founder of ACICIS, the Australian Consortium for ‘In-Country’ Indonesian Studies, which develops and coordinates study programs at Indonesian partner universities for Australian university students. “In addition, Professor Hill is on the Board of the Australia Indonesia Institute and was the driving force behind this year’s highlysuccessful National Colloquium
on the Future of Indonesian in Australian Universities. “We are therefore delighted to offer this honorary position to Mr Joelianto, who has been a strong supporter of our activities in this area. It is our hope that this appointment will further strengthen the links between Murdoch University and Indonesia.” Joelianto’s public address was given in the Kim E Beazley Lecture Theatre at Murdoch’s South Street Campus on 21 July.
President University in Joint Coop with UNPAR and Polres Bekasi In its bid to become a “World Class University”, President University has formed partnerships with more than 500 organizations such as private companies, government bodies and universities from Indonesia and abroad. Recently, President University conducted 2 (two) collaborations) with Parahyangan Catholic University and the Indonesian National Police. On June 21, 2011 President University signed a Memorandum of Understanding with Parahyangan Catholic University at UNPAR campus.
The MoU signing is intended to optimize both universities’ effort in achieving their vision and mission. The scopes of cooperation to be conducted are faculty assistance program, student internship program, cooperative research programs and mentoring program for courses accreditation. The occasion was attended by PU’s Rector, Prof. Dr. Ermaya Suradinata, accompanied by Vice Rector I and II, and Head of Academic Development Bureau, while Parahyangan Catholic University was represented by its Rector, Dr. Cecilia Lauw Jade Swan, and its academicians.
Another agreement signing was with Polres Bekasi on July 1, 2011, to coincide with the Bhayangkara Day, the anniversary day of the Indonesian Police. This cooperation is intended to establish mutually beneficial relationship and provide benefits and common interest in the implementation, enhancement and development of each party. The scope of cooperation is educational or training activities, research and community service in the field of law and security. The MoU signing was conducted by Setija Junianta and Prof. Dr. Ermaya Suradinata.
This cooperation is intended to establish mutually beneficial relationship and provide benefits and common interest in the implementation, enhancement and development of each party.
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Culture-Tourism Lampung in Full Swing to Attract Tourists
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Besides Tanjung Setia, West Lampung also has other tourists objects such as Labuhan Jakung Beach, Pulau Pisang, Lake Ranau, Way Besai rafting resort, and Sekura Cakak Buah cultural festival. Riady said that in 2010,
Bali has set a target to receive 2.6 million to 2.8 million foreign tourists in 2011. In 2010, Bali was visited by 2.57 million tourists. www.trulyindonesia.com
Lampung province will host the 17th Tourism Indonesia Mart & Expo (TIME) on October 12-14, 2011 at the Novotel Hotel in the provincial capital of Bandarlampung. number of tourist objects in West Lampung have been prepared to attract as many holiday makers as possible. Local culture and tourism office chief for promotion section Riady Andrianto said here last week that West Lampung has so far been always ready to welcome the tourists but this year would attract even more holiday makers. Riady said a number of tourists objects in West Lampung district have increased their workers to give an optimum service, sense of comfort and security to the visitors. According to him, West Lampung district in the near future would lure as many tourists as possible to visit the resort. Riady also said Tanjung Setia tourism object has natural panoramic view and challenging waves for foreign tourists to go surfing. He added that the coolness and crystal clear sea water at Tanjung Setia also offered additional attraction for the foreign holiday makers.
Foreign Tourist Arrival in Bali up 6.61%
Most of the foreign tourists arrived at Ngurah Rai airport, Bali, by planes, and only 12,369 people came by cruisers or ships. Bali has set a target to receive 2.6 million to 2.8 million foreign tourists in 2011. In 2010, Bali was visited by 2.57 million tourists. The number of tourists from eight countries has increased, namely from Australia (up 29.34% from 231,361 people to 275,957 people, China (4.19% from 83,535 people to 87,038 people), Malaysia (25.41% from 53,383 people to 65,950 people), South Korea (up 0.45% from 48,631 people to 48,852 people), England (up 31.74% from 30,335 to 39,963), Singapore (33.23%, from 29,862 to 39,784), France (up 8.37% from 35,264 to 38,426), Russia 25.72% from 28,518 to 35,853 people).
more than 400,000 tourists visited West Lampung tourism objects and 10,000 of them were from Australia, New Zealand, the United States, and other Asian countries.
White water rafting West Lampung district in Lampung Province is offering white water rafting to both domestic and foreign tourists this year. “West Lampung has a river with good potential for rafting and therefore we offer it to both domestic and foreign tourists who love water sports,” local Culture and Tourism Office chief Hudaibi said here recently. He said the swirling current of the river had a special attraction for the tourists to try their surfing courage. Hudaibi added that Way Besay river in Bumberjaya subdistrict was a perfect place for the water-sports loving tourists. “Most of the rivers here are good for water sports and adventure, and attract many domestic and foreign tourists to come to West Lampung,” Hudaibi said. He added that the local government would continue to intensify the development of the historical tourist areas at four locations in the district. Hudaibi expressed optimism that West Lampung tourism could compete with other tour-
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Bali Island has attracted over 1.05 million foreign tourists during the first five months of 2011. During January-May 2011, Bali received a total of 1,05 million foreign tourists, up 6.61% from 992,335 during the same period in 2010, Gede Suarsa, Chairman of the Bali Central Bureau of Statistics said here Saturday.
Tanjung Setia, one of the tourism objects in West Lampung, has natural panoramic view and challenging waves for foreign tourists to go surfing. ist destinations across the country because the district has a lot of natural potentials such as agriculture, plantation, and tourism. Meanwhile, West Lampung district head Mukhlis Basri said his district could compete at national level so long as tourism was concerned. “I am optimistic that the great potential in West Lampung can be developed even better so that in the future this region will be able to compete to be one of national tourists destination,” Mukhlis said, adding that the local government has so far intensively managed the existing tourism assets. He said West Lampung was still open for investors who could develop the tourism objects in the area.
To Host Tourism Indonesia Mart & Expo 2011
Lampung province will host the 17th Tourism Indonesia Mart & Expo (TIME) on October 12-14, 2011 at the Novotel Hotel in the provincial capital of Bandarlampung. TIME is the only contract trade show in Indonesia where Indonesian tourism product sellers and buyers meet under a computerized appointment system, the director of domestic promotion at the Culture and Tourism Ministry, M. Faried said here last week. He said TIME had been included in the regular agenda of international travel mart with high transaction value. The event was last held in Lombok, West Nusa Tenggara province, in 2010 when $17.5 million worth of transactions were signed. The figure is expected to increase by up to 20% this year. “The holding of TIME in Lam-
pung will have a positive impact on cross-sectoral development and open the tourism potential of the province,” he said at a press briefing here last month. Meity Robot of the Indonesia Tourism Society shared Faried`s view saying TIME had had a positive impact on the development of infrastructures in the province which had hosted the event. The head of the marketing division at the Lampung provincial culture and tourism office, Siti Fajariah said the local tourism authorities were developing infrastructures to support the holding of the event in the province. “The Lampung provincial culture and tourism office will take advantage of the event to promote its 5 key tourist destinations. They are Mount Anak Krakatau, Tanjung Setia, Kiluan Bay, Way Kambas National Park, and Siger tower,” she said.
However, the number of Japanese tourists visiting Bali during JanuaryMay 2011 dropped 24.60% from 99,473 people in the same period in 2010, to 74,999 people this year. Tourist arrivals from Taiwan also went down 4.87$ from 54,628 people in January-May 2010 to 52,157 people in the same period this year, Gede Suarsa said. The number of tourists from ASEAN member countries in Bali, mainly Malaysia, Thailand, Singapore and the Philippines, in May 2011 increased to 28,819 from 20,630 in January 2011. Indonesia has set itself the target of attracting 7.7 million foreign tourists this year.
Thousands of Tourists Visit Pagaralam Each year tourists come to Pagaralam in increasing number In 2010 some 10,340 tourists visited Pagaralam city, S. Sumatera, head of Pagaralam tourism, art and cultural agency H Syafrudin said. “Each year tourists come to Pagaralam in increasing number, and up to December last year their number has reached 10,340 local and foreign tourists,” he said here last week. Most of them visited Mt Dempo tourist locations, he said, adding that local tourists reached thousands of them, and only six foreign tourists from Canada, Netherlands, UK, Australia and the United States. “A special attraction would be the flower festival in November 2011, and some other important events, including new year,” he said.
Three Reasons Why Golfers Must Play at Borobudur International Golf & Country Club of Magelang
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Borobudur Golf definitely offers natural beauty as it is located in the mountainous region of Magelang in Central Java. Lying at the altitude of some 340 meters above sea level, it provides a cool climate of 22–26 Celsius. The golf course was re-designed by Douglas Duncanson and is managed by PT Jababeka, the largest property developer in South East Asia. With well-planned and scheduled maintenance by skilled golf course workers, it has outstanding quality fairways as well as greens. The landscapes are truly eye-catching. The well-maintained putting green and the large ground of driving range with eight seats is a good place for any golfer to flex their muscles and fix their swing before going down the course.
“The greens of Borobudur International Golf Magelang are superb in quality.”
Easy access
The golf course is nestled between two international airports, namely Semarang Airport and Yogyakarta Airport. It takes a road travel of some two hours from Semarang and 1½ hours from Yogyakarta to reach the golf course, which is located in the centre of the town of Magelang. A 30-minute drive from the golf course brings you to the famous World Heritage Temple of Borobudur. The town has several 3- and 4-star hotels which are only minutes’ away from the golf course.
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The golf course is equipped with a modern club house furnished with first class amenities that provide Western, Oriental and Indonesian culinary delights.
Borobudur Int’l Golf & Country Club Magelang City
Kaliurang Merapi Golf
Borobudur Temple
Muntilan
Pakem
Kalasan Temple
to Solo Adi Sucipto Int’l Airport Yogyakarta to Parang Tritis
Mr. Susilo Bambang Yudoyono The President of Republic of Indonesia
Friendly, good-looking and welltrained waitresses are one of our front-liners who make sure every service is rendered satisfactorily with genuine hospitality. We offer golf tour packages which include playing golf at two different courses plus visiting historical sites of Borobudur and Prambanan Temples. City tour is optional and can easily be arranged.
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Golf players are supplied with golf buggies and accompanied by young and charming female caddies who are well-trained both in the knowledge of golf as well as hospitality. As they are familiar with the characteristics of each and every 18 holes, they are very happy to give useful guide to help players score better results. Friendly smiles and helpful assistance are what golfers experience throughout their games.
Latest update
On his last visit in mid-July 2011, Mr. Susilo Bambang Yudoyono, the president of Republic of Indonesia, commented: “The greens of Borobudur International Golf Magelang are superb in quality.”
Borobudur International Golf & Country Club Jl. Jend. Gatot Subroto No 1, Magelang Central Java, Indonesia Ph: +62 293 313 758 Fax: +62 293 313 757 email: marketing@borobudur-golf.com website: www.borobudur-golf.com
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Travel www.wikimedia.org
Lombok An “Obvious” Tourist Destination Lombok is often marketed as “an unspoiled Bali,” or “Bali’s sister island.” Only 25 miles separate the two islands. Currently, with support of the central government Lombok (and Sumbawa) are being developed as Indonesia’s second destination for international and domestic tourism.
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ombok has retained a more natural, uncrowded and undeveloped environment, which attract travelers who come to enjoy its relaxed pace and the opportunity to explore the island’s unspoiled, spectacular natural beauty. The more contemporary marketing campaigns for Lombok/Sumbawa seek to differentiate from Bali and promote the island of Lombok as a stand alone destination. The imminent opening (2011) of the new Lombok International Airport will be a great help in this endeavour. An island in West Nusa Tenggara (Nusa Tenggara Barat or NTB) province, Lombok forms part of the chain of the Lesser Sunda Islands. The Lombok Strait separates it from Bali to the west and the Alas Strait between it and Sumbawa to the east. The provincial capital and largest city on the island is Mataram, somewhat similar in size and density with neighboring Bali and shares some cultural heritage, but is administratively part of NTB along with sparsely populated Sumbawa. It is surrounded by a number of smaller islands locally called Gili. The island is home to some 3.16 million Indonesians (2010 census) and foyr regencies along with the provincial capital Mataram. It is divided into four regencies, North Lombok Regency, Central Lombok Regency, East Lombok Regency and West Lombok Regency. The island’s topography is dominated by the centrally-located stratovolcano Mount Rinjani, which rises to 3,726 m (12,224 ft), making it the second highest volcano in Indonesia and the nation’s third-highest mountain. The highlands of Lombok are forest clad and mostly undeveloped. The lowlands are highly cultivated. Rice, soybeans, coffee, tobacco, cotton, cinnamon, cacao, cloves, cassava, corn, coconuts, copra, bananas and vanilla are the major crops grown in the fertile soils of the island. The southern part of the island is fertile but drier, especially toward the southern coastline. Lombok’s most important industry is tourism. The most developed of tourism area in Lombok is on the west coast of the island and centered about the township of Senggigi. Senggigi and it’s immediate surrounds contain the most developed tourism facilities in the coastal tourism strip that is spread along a 30-kilometer strip of the coastal road north from Ma-
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taram and the nearby current airport at Ampenan. A large number of hotels and resorts offer accommodations ranging from budget to luxurious. Approximately 1–5 kilometers offshore from the mainland lie the three highly popular Gili Islands. These are most commonly accessed by boat from Bangsal near Pemenang, or from Senggigi. Recently direct fast boat services have been running from Bali making a direct connection to the Gili islands. Although rapidly changing in character, the Gili’s still provide both a lay-back backpacker’s retreat and a high class resort destination. Other tourist destinations include Mount Rinjani and Kuta (distinctly different from Kuta, Bali) in south Lombok where surfing is considered some of the best in the world by leading surfing magazines. The Kuta area is also famous for its beautiful, largely deserted, white sand beaches. Sekotong, in southwest Lombok, is popular for its numerous and diverse scuba diving locations. The northern west coast near Tanjung has many new upmarket hotel and villa developments centered about the Sire and Medana peninsular nearby to the Gili islands and a new boating marina at Medana bay. These new developments complement the already existing 5 star resorts and a large golf course already established there. Initially, low budget bungalows proliferated at places like the Gili islands and Kuta, Lombok on the South Coast. These tourist accomwww.lombok123.com
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modations were largely owned by and operated by local business entrepreneurs. Areas in close proximity to the airport, places like Sengiggi, experienced rampant land speculation for prime beachfront land by big businesses from outside Lombok. Little is known about Lombok before the seventeenth century. Before this time it was made up of numerous competing and feuding petty states each of which were presided over by a Sasak ‘prince’. This disunity was taken advantage of by the neighbouring Balinese who took control of western Lombok in the early seventeenth century. The Makassarese meanwhile invaded eastern Lombok from their colonies in neighbouring Sumbawa. The Dutch had first visited Lombok in 1674 and the Dutch East India Company concluded its first treaty with the Sasak Princess of Lombok. The Balinese had managed to take over the whole island by 1750, but Balinese infighting resulted in the island being split into four feuding Balinese kingdoms. In 1838, the Mataram kingdom brought its rivals under control. The entire island was annexed to the Netherlands East Indies in 1895. The Dutch ruled over Lombok’s 500,000 people with a force of no more than 250 by cultivating the support of the Balinese and Sasak aristocracy. While the period was one of deprivation for the Sasak, they Dutch are remembered as liberators from Balinese hegemony. In 1958, the island was incorporated into the province of West Nusa Tenggara with Mataram becoming the provincial capital. During President Suharto’s New Order administration, Lombok experienced a degree of stability and development. The 1980s saw external developers and speculators instigate a nascent tourism boom. In the 1990s the national government in Jakarta began to take a very active role in planning for and promoting Lombok’s tourism. Large hotels provide primary employment for the local population. Ancillary business, ranging from restaurants to art shops have been started by local businessmen. These businesses provide secondary employment for local residents. The years leading up to 2010 has seen a rapid revival and promotion of tourism recovery in the tourism industry. The number of visitors has far surpassed the pre2000 levels. All signs indicate the long-term trend will see a steady increase in the number of visitor arrivals. The island’s natural beauty and the customary hospitality of its residents make it an obvious tourist destination. The government is actively promoting both Lombok and neighboring Sumbawa as Indonesia’s number two tourism
destination after Bali. President Susilo Bambang Yudhoyono, the Ministry of Cultural and Tourism and the regional Governor have made public statements supporting the development of Lombok as
a tourism destination and setting a goal of 1 million visitors annually by the year 2012 for the combined destination of Lombok and Sumbawa. This has seen infrastructure improvements to the is-
land including road upgrades and the construction of a much delayed new International airport in the islands south. Source: Wikipedia
The island’s natural beauty and the customary hospitality of its residents make it an obvious tourist destination.
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Pictorial Events Taxt & Photos by Nandi Nanti
“Etiket Hijau”
(Green Etiquette) Book Launching Mien R. Uno launched her new book entitled Etiket Hijau (Green Etiquette). The event was attended by many public figures, namely Mufida Jusuf Kalla, Chairul Tanjung, Ramli, Titiek Puspa and Anies Baswedan.
Taxt & Photos by Nandi Nanti
Today’s Challenges, Future Potentials World Bank Economy Seminar World Bank Economy Seminar at BKPM themed Today’s Challenges, Future Potentials. The speakers were Gita Wirjawan (Head of BKPM), Marie Pangestu (Minister of Trade), Justin Yifu Lin (Chief Economist of World Bank).
IMAGINE CUP 2011 Microsoft unveiled a $3 million grant program at the closing ceremony for the Imagine Cup 2011. Teams from Ireland, Taiwan, Brazil, France, Poland and Korea were awarded the top prizes with the People’s Choice Award going to a team from Bangladesh. Team Hermes from Ireland were the winner of the $25,000 1st Place prize in the Software Design competition. The team designed a device that plugs into a car and monitors dangerous driving behavior and road conditions, providing instant feedback to both the driver and the car owner. The team’s solution uses embedded technology, Windows Phone 7, Bing Maps and the Windows Azure cloud computing platform to change driving habits and reduce road deaths. Team NoteTaker (United States) came 2nd and OaSys (Jordan) were 3rd. Indonesia also participated in the event, represented by Team Gatot Kaca from Telkom Institute of Technology (IT Telkom) and ITB, Team Macara from University of Indonesia and Team DreamBend-
er from IT Telkom. Team Macara had successfully entered the second round and team DreamBender reached the 2nd position on Windows 7 Touch category.
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Living Keep Your Career Healthy – Even If You’re Not When you’re diagnosed with a long-term health problem -- such as multiple sclerosis, bipolar disorder, even arthritis or back problems -- the cost of your care is just one of your money worries. There’s also a threat to your earning power. Should you reveal the condition to your boss or hide it as long as possible? When your employer finds out, could you fall off the promotion track? Get pushed into a dead-end position? Lose your job altogether?
ment Opportunity Commission. So how do you keep your career and income moving in the right direction? Employment lawyers and disability advocates suggest the following strategy.
First, don’t put this off Silence is risky, because people who are demoted or fired before speaking up usually aren’t protected by the law. However, before you talk, be prepared.
The secret life of a resume
There are laws to protect workers, but whether you are covered by them will depend on the size of your company, says Chris Kuczynski of the U.S. Equal Employment Opportunity Commission. So how do you keep your career and income moving in the right direction? Employment lawyers and disability advocates suggest the following strategy.
Ask your doctor what accommodations – reasonable changes to your work environment – may become necessary. For example, you may need ergonomic fixes in your office or a delayed start time if meds make you drowsy in the morning.
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You may not feel comfortable opening up to your immediate boss about your condition. So start by presenting your HR department, or the higher-up you most trust, with a letter from your doctor that simply says you have a medical condition and that you’ll need accommodations. Your company can ask for another letter stating the diagnosis, but the conversation often doesn’t go that far. Be as specific as possible about
hen you’re diagnosed with a long-term health problem – such as multiple sclerosis, bipolar disorder, even arthritis or back problems – the cost of your care is just one of your money worries. There’s also a threat to your earning power. Should you reveal the
condition to your boss or hide it as long as possible? When your employer finds out, could you fall off the promotion track? Get pushed into a dead-end position? Lose your job altogether? There are laws to protect workers, but whether you are covered by them will depend on the size of your company, says Chris Kuczynski of the U.S. Equal Employ-
Focus on the solutions, not problems
Tips and Tricks for Saving on Travel This Summer By J.D. Roth After years of scrimping and saving and digging out of debt, I can at last afford to let loose a little and enjoy myself. For me, that means travel. Like George Bailey in It’s a Wonderful Life, I want to shake the dust of this crummy little town off my feet and see the world. But still, it ain’t cheap. In fact, it can be downright expensive. My wife and I have done a couple of organized tours already, and the cost makes my frugal heart break. So what’s a penny pincher to do? Well, this penny pincher has spent the past few months getting a crash-course in finding the best deals on lodging and airfare. Here are some handy web tools I’ve uncovered.
Travel Air Ninja lets you find flights on low-cost airlines around the world. It’ll also hook you up with traditional travel aggregation tools such as Kayak, Orbitz, and Expedia. It’s worth checking every airfare tool you can find. I just bought a one-way ticket to London for August. While every other site wanted to charge me $1,400 or more, I found the identical flight for less than $900 on Airfare.com. Airfare Watchdog is a fun site for flexible fliers. Enter the cities you want to travel to and/or from, and Airfare Watchdog will send you email updates about the cheapest available flights. (The site also lists its top 50 fares, topped at the moment by an $18 round-trip ticket between Las Vegas and Los Angeles.) One last tip for air travel: When you book your flight, visit SeatGuru, which offers layouts of hundreds of aircraft from different airlines. Want more legroom? A power outlet? Someplace far from the toilets? SeatGuru can help you find the perfect seat on your next trip.
Lodging Once you reach your destination, you’ll need a place to stay. Veteran traveler Chris Guillebeau (who is trying to visit every country in the world by the time he turns 35) says Priceline is a good source for discounted hotel rooms
If you don’t need pampering, consider staying in a hostel. Hostels offer budgetpriced accommodation for independent travelers. but notes the site doesn’t disclose minimum successful bids. Guillebeau says you can often get around this by searching Google for “Priceline winning hotel bids” to locate sites that list this info. If you don’t need pampering, consider staying in a hostel. Hostels offer budget-priced accommodation for independent travelers. Rooms are generally dormitorystyle, but many hostels also have a few single or double rooms available. For my upcoming trip to London, I’ve been browsing the listings at Hostel World and Hostel Bookers, two sites that provide hostel ratings, reviews, and more. (In my searches, Hostel Bookers usually had the better prices.) Travel-planning site BootsnAll also provides a hostel search, as well as tools for finding flights and hotels.
Tips Here are a handful of other sites that provide useful info for travelers: • The U.S. Department of State publishes a list of tips for traveling abroad. I plan to review this
site before each trip and to carry the URL with me as I go. If something goes awry, I want quick access to the information. • Jodi Ettenberg at Legal Nomads has compiled her own list of tips and resources for world travel, including helpful hints on how to stay healthy while on the road. Her info is useful for travelers of all stripes, whether you’re planning a two-week vacation in Paris or a twoyear round-the-world odyssey. • If you have a travel question, visit Flyertalk. The forums there are filled with experienced travelers, and you can pick up free advice on your itinerary or travel issue. • Finally, at Fluent in 3 Months, Benny Lewis shares tips for learning languages quickly. Lewis sells a Language Hacking Guide if you’re serious about learning, but his site offers tons of tips for just getting by. Inspired by his methods, I’ve begun to learn Spanish. Using these tools and resources, I’m all set. I’ve booked a flight to England in August and am eyeing Ecuador in October. If all goes according to plan, I’ll spend a part of my summer hiking Hadrian’s wall. And in the fall, I’ll find a hostel room waiting for me in Quito. I’m eager to practice my (poor) Spanish with the locals and to make my way to the Galapagos to look at the giant tortoises.
The Pros and Cons of Job-hopping
the accommodations you want and try to offer your employer more than one option. By law, companies can deny any accommodation that causes undue hardship. If you do end up in court, taking a cooperative approach from the start will make a good impression on a judge or jury, says East. Keep written records of all discussions.
Think about a new role Even after granting accommodations, your boss may eventually decide that you can no longer do your current job. Rather than simply accepting a lesser position, propose a new role that has clear benefits for the company. Let’s say you’re in sales but can no longer travel regularly to meet with clients. You might propose taking over local clients, plus adding office duties such as training. These steps aren’t always enough. Depending on the severity of your condition, you may ultimately have to find a different kind of job at another company or go on disability. In that case, ask for severance. Most employers don’t grant it, but when you’ve built up goodwill while managing your condition, some firms will try to help you through the transition. (Money Magazine)
Just because you’re eager to leave a job doesn’t mean it’s a wise career move. That said, staying in a position that feels like the wrong fit may also hinder your career. Not sure what to do? Instead of jumping to the wrong decision, take some time to evaluate how job-hopping might affect your future opportunities. Here are the pros and cons of leaving your current job for greener pastures.
You’ll get more targeted skills In some industries, quickly leaving a job can help you gain more specific skills for your next gig. It’s especially relevant in more technical positions, says Scott Ragusa, contract business president at recruiting firm Winter, Wyman. “Many highly technical consultants will add necessary experience to a very specific part of a project and then move on to the next one,” Ragusa says.
You’ll have a wider range of experience Making strategic moves can also help you build expertise more quickly for a future role. For example, says John Crant, a career coach and founder of SelfRecruiter.com, “If you strategically moved across three roles to add marketing, advertising and public relations expertise to your career skill set, then you can position those choices as building the background that would be most valuable for the [next] role you desire.”
You may get a pay jump
“When we stay a long time at
one company, others in our field statistically move ahead of us in compensation,” Crant says. Many companies implement pay freezes or only give employees a cost-ofliving raise. If you’re coming from a different company, hiring managers base your salary on your previous salary and may make a higher offer, he says. “You can generally get a higher adjustment to your compensation than what your annual review will give you,” he says.
It will raise questions about your skills Lots of short stints on your résumé will undoubtedly raise questions about your skills and work ethic, so be prepared with explanations. Many employers are hesitant to hire people who’ve held several positions for less than a year, because it shows that their skills were not a match for several companies. Especially during non-recessionary times, jobhopping can raise a red flag. “You may be looked at as damaged goods,” Crant says.
Employers may question stability “Job-hopping without a clear plan in place can be perceived as a ‘difficult-to-keep employee’ and some employers will not want to hire them for their next short
hop,” Ragusa says. This can be especially difficult in some large companies that place a higher value on job stability. More importantly, some employers may go with a person who has previously held long-term positions, Crant says. “Though you may be the ‘right one,’ companies will oftentimes choose the individual that seems to offer the better return on their hiring investment – the person that will stay with them contributing for the longer term,” he says. Even if you’ve had a few short stints, it’s important to understand what employers are looking for in successful hires and be able to provide explanations for your experience, Crant says. Ideally, employers would like someone to stay for at least two years to really learn the ropes and about four to seven years to make it profitable for the company, he says. As you search for your next move, be sure to understand their view and focus on other achievements. “If you’ve had several quick moves, be ready to explain the reasons why those moves occurred, and make sure this employer knows that you are looking for the right career home with this move,” Crant says. (CareerBuilder.com)
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Health CPR for Your Brain
Medicine Advancing
BEYOND RACE No matter what race you consider yourself to be, you have a unique genetic makeup. That’s why, as technology improves and researchers explore new implications of the human genome, medicine is going to become more individually tailored in a model called personalized medicine. By Elizabeth Landau, CNN
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lthough we’ve been hearing for years that people of particular races are at higher risk for certain illnesses, personalized medicine will (in theory) make better predictions based on actual genetic makeup. And even now, race is less relevant to your own health care than you might think. But doctors say a patient’s culture – the collection of norms, goals, attitudes, values and beliefs – will always be important to health care, no matter how sophisticated genetic technology gets. When it comes down to it, there’s no clear-cut way of saying that one person “belongs” to one race or another – in fact, a person who has the skin color and hair type typical of one race may selfidentify in a completely different way. Race’s importance may be fading in medicine, but scientists have identified many associations among particular groups, such as these: • In India, one in 25 people has a genetic mutation that increases the risk of heart disease • People of Ashkenazi Jewish
descent are at higher risk for Crohn’s disease, Gaucher’s disease, Tay-Sachs, colon cancer and certain types of breast cancer, which have all been tied to specific genetic mutations • African-American adults are 40% more likely to have high blood pressure than non-Hispanic whites • African-American men had a 30% greater chance of dying from heart disease, compared with non-Hispanic white men, in 2007 And if you think that race comes from location-based populations, many Americans don’t have a “pure” genetic heri-
tage from only one world region. In fact, 9 million Americans identified as multiracial on the most recent census, so it’s hard to make these distinctions. You probably have genes that came from several groups of ancestral communities. Based on archaeological evidence, everyone’s earliest ancestors came from Africa more than 2 million years ago, so we’re all descended from the same “race” anyway. For decades, doctors thought that sickle cell disease was exclusively African, but some people of Mediterranean and Indian origin
also have the genetic trait. We now know that the genetic trait for sickle cell disease protects against malaria, and that it is found among people with ancestry in places where malaria is, or used to be found, biologists Marcus Feldman and Richard Lewontin point out in their essay “Race, Ancestry, and Medicine.” African-American life expectancy at birth is on average, about five fewer years than white Americans, according to the most recent data from the Centers for Disease Control and Prevention. But Dr. Vicente Navarro at Johns Hopkins University has shown in his research that social class is a bigger driver of U.S. life expectancy than race or gender. He points out in a 1990 Lancet study that the United States is the only Western developed nation that does not report health statistics according to class. Race has an important role in reaching populations at risk, Hayes said. Data about African-American risk can help target screening efforts for heart disease, for instance, she said. When it comes to allocating resources and focusing efforts on at-risk groups, race can be a useful tool, even if it is imperfect, she said.
Soldiers in full combat gear file into a hot, deafeningly loud, and dark room. Fake blood covers the floor and drips off the plastic body parts that are scattered about. Smoke and strobe lights mix with heavy metal music and the sound of recorded screams. After weeks of behavioral therapy for traumatic brain injuries, the soldiers are facing this intense simulation to show that they can get back to their daily work—combat. Staff Sgt. Aaron Potter is among the group of patients at Fort Campbell, Kentucky, going through this final assessment. “It’s probably the closest you can get without having the real thing. The smoke, the smells, the noises, the injuries,” Potter says after exiting the simulation. In 2009 Potter was knocked unconscious when he was hit by three IEDS at once in Iraq. This is his second round of therapy at Fort Campbell, after breaking down under the stress of the room simulation the first time around. “I really struggle with multitasking and getting multiple things done at one time, where as before I never really had a problem with that, Potter says. “Now there are slight problems but I am a lot better off than I was.” When Potter came home to his wife and two sons from Iraq, his brain injury left him unable to concentrate, focus on tasks or even deal with basic chores around the house. “Within a week or two I started to pick up on how either he didn’t understand what I was saying to him. Simple things that he normally did, he couldn’t do them. He couldn’t do them or just didn’t understand how to do them,” says Tiffany, Potter’s wife. Tiffany urged him to get help at
The brain is a use it or lose it organ. So what you need is to continue to exercise it by making it do what it does. What we have is a brain gymnasium.” the base’s clinic. Neither of them realized at the time it was a brain injury. “Some of the things he was having to deal with were making it difficult for him to do his job well so it was really a time for us to come together and say hey look we can actually help, we can make a difference here,” says Dr. David Twillie, director of the Fort Campbell Traumatic Brain Injury Clinic. Doctors at Fort Campbell have developed a new approach to treating the type of war zone brain injuries these soldiers are trying to recover from. The advanced treatment relies on identifying the parts of the brain that have suffered trauma, recognizing the tasks the patient is having trouble with that relate to that part of the brain, and then getting to work, exercising the brain, regenerating and reenergizing specific brain functions. “The brain is a use it or lose it organ,” says Dr. Bret Logan, the executive director of Fort Campbell’s Warrior Resiliency and Recovery Center. “So what you need is to continue to exercise it by making it do what it does. What we have is a brain gymnasium.” But how do you exercise the injured parts of your brain? At Fort Campbell there are exercises for balance, puzzles for concen-
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tration and video games to teach relaxation. It’s a treatment that doctors there say can help those suffering any type of brain injury– a sports injury, a car accident or a gun shot. Retraining the brain, he thinks may work in treating brain disorders like Alzheimer’s or Parkinson’s disease. “We believe you can and you do that be exercising the part of the brain which is responsible for that function,” says Logan. “What we are saying is we can slow, maybe even for periods arrest the process of decline in that area of the brain.” When it comes to changing brain and behavior he says, counseling just isn’t enough.“Counseling programs, rehab are really about stopping the pattern, finding other ways to deal with stress in your life and no longer using the substance. But you’re still left with the brain that you’ve created over whatever period you’ve used toxic drugs,” Logan says. “If that brain is not adequate, not functioning well due to that toxicity, then rehab will not help you with that. Then you must move on to these aggressive techniques that will allow you to strengthen, retrain, energize your brain.” (CNN)