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PRESIDE NT INDONESIA ECONOMIC REVIEW

JOKOWI’S FOREIGN POLICY AND ASEAN

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JALES VEVA JAYA MAHE

BLUSUKAN DIPLOMACY

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Quotes “Choosing the leader is part of the responsibility and the elected must carry out the mandate.” vv v

“Do not have an interest, we have only one interest: to the people.”

“Politics is full of merriment, that politics in which there is happiness, it is a virtue politics, and politics is freedom”

“A leader is must be ﬁrm without hesitation”

“Life is a challenge; do not listen to what people say, the most importance is work, work and work. Work will produce something, while babbling only produces an excuse.”

“See with our eyes. Hear with our ears. Talking with our voices. The leader of the people born from the small people”

“A leader is must be ﬁrm without hesitation”

“In the way am leading, I will make people as consumers. And the consumer is king”

“The Honor of life is when your name is exist in the hearts of people around you and your work is useful for many people”

“My childhood ﬁrst learning was about how to understand people's lives.”

CONTENTS

DECEMBER 2014

“ I believe we will be able to carry out these heavy historical tasks together — united, in partnerships between us and with hard work. Unity and partnerships are required from us to be able to grow into a great nation.We will never become great if we’re still trapped in discord and division. And we will never be fully independent without hard work.”

-Joko Widodo, President of Indonesia 60 | SUSI PUDJIASTUTI: INDEPENDENT KID FROM RICH FAMILY 68 | JOKOWI’S FOREIGN POLICY AND ASEAN 90 | TANJUNG LESUNG TOWARDS INTERNATIONAL TRAVEL DESTINATION 92 | PALU, A PIECE OF PARADISE ON THE EQUATOR

6 | THE PRESIDENT MAGAZINE DECEMBER 2014

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PR ESID ENT Publisher: Agus Canny Commissioner: Muljadi Suganda Nandi Nanti Editor In Chief: Rachmat Wirasena Suryo Advisor: Samsul Hadi Kunto Hernansaputro Ali Basyah Suryo Editor: Robert J Khairisa Ferida Dwi Arista Inggit Agustina Joko Harismoyo Editorial Secretary: Nourul Ulfah Desi Yulieta Senior Art Director: Danindra Herdiansyah Graphic Designer: Nike Andriana Asep Awaludin Photo Editor: Bintang Paschya Web Manager: Reza Ganesha Partakusuma Sales and Marketing Manager: Nina Karlita Andrian Irawan Sales and Marketing: Erni Bermansyah Jino Afrizal Edward Dondy Customer Relationship: Ratih Suryani Rangga Wiraspati Circulation & Promotion: Nindy Novianti Circulation & Distribution Candra Mata Nata Kesuma Deni Maman Panjilesmana Social Media: Arief V. Natanagara Supportted By:

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Joko Widodo’s Inaugural Speech as Nation’s Seventh President The following is an unofficial transcript of the speech delivered by Indonesian President JokoWidodo during his inauguration in the national legislature in Jakarta on Monday (20/10/2014).

nder the will of the People and the Constitution. Peace be upon all of us. I just pledged my oath. The oath has a deep, spiritual meaning, underlining my commitment to working hard in order to achieve our dream of becoming a big nation. It is now time for us to unite our hearts and join our hands. It’s time for us to continue with our next historical tasks, which are tremendously heavy; to transform Indonesia into a sovereign country politically, self-sufficient economically, and with its own strong cultural identity. I believe we will be able to carry out these heavy historical tasks together — united, in partnerships between us and with hard work. Unity and partnerships are required from us to be able to grow into a great nation. We will never become great if we’re still trapped in discord and division. And we will never be fully independent without hard work. The government I lead will work hard to ensure that every citizen throughout our nation will have access to public services. I’m also asking of all state institutions to perform each of their duties and functions with the same spirit. I believe this country will grow stronger and more dignified if all state institutions carry the mandates given to them by the Constitution. To the fishermen, laborers, farmers, meatball sellers, hawkers, drivers, academics, teachers, the Indonesian Military, the National Police, business people and professionals, I’m calling on [all of us] to work hard, hand in hand, in partnership. This is a historical moment for all of us, to move together to work … work … and work.

Great Indonesia

Honorable guests, to end this speech, I’m calling on my fellow countrymen and women to remember one thing the first president of the Republic of Indonesia, Bung Karno, once said; that to develop Indonesia into a great, strong, prosperous and peaceful nation, we must possess the heart of ‘cakrawarti samudera,’ namely the heart of a sailor who courageously sails through big currents and rolling waves. As a captain mandated by the people, I’m asking the entire nation to board this ship that is the Republic of Indonesia and to sail together toward a Great Indonesia. We will stretch sturdy sails. We will face storms and ocean waves using our own power. I’m standing under the will of the people and the Constitution. Hopefully the One God will always bless our efforts together. Freedom! Peace be upon us. May God bless us.”

Maritime Nation Honorable guests, we want to be present among other nations with honor, dignity and self-esteem. We want to be a nation that will be able to build its own civilization, to become a creative, great nation that will contribute to the greatness of the global civilization. We have to work as hard as possible to turn Indonesia into a maritime nation once again. Oceans, seas, straits and bays are the future of our civilization. We’ve turned our back on the seas, oceans, straits and bays for far too long. It is time for us to realize ‘jalesveva jayamahe,’ ‘in the ocean we triumph,’ a motto upheld by our ancestors in the past. We want to make that happen again. My fellow countrymen and women. The big job to build the nation cannot be done by the president, vice president and the government I lead alone. It needs the support of a collective power, which is a united nation. In the next five years we will continue our momentum as an independent nation. Therefore work, work and work are most important. I believe that with hard work and cooperation, we will be able to protect the nation and all the citizens of Indonesia, to improve public welfare, to educate the

nation and to participate in efforts to maintain the world order based on independence, eternal peace and social justice. My fellow countrymen and women. On behalf of the people and the government of Indonesia, I extend my gratitude and appreciation to their excellencies heads of states and governments and special envoys from foreign nations [attending this ceremony]. I want to emphasize that under my leadership, Indonesia — as the world’s third-largest democracy, the world’s most populous Muslim nation, an archipelagic state and the biggest nation in Southeast Asia — will continue to exercise our independent and active foreign policy dedicated for the national interest, and will take part in maintaining the world order based on independence, eternal peace and social justice. In this historical moment, allow me, personally, and on behalf of Vice President Muhamad Jusuf Kalla and the people of Indonesia to extend our gratitude and appreciation to Bapak Prof. Dr. Susilo Bambang Yudhoyono and Bapak Prof. Dr. Boediono — who have run the government over the past five years.

THE PRESIDENT MAGAZINE DECEMBER 2014 | 9

BLUSUKAN DIPLOMACY: POPULIST LEADERSHIP STYLE In time when people started to get bored with the bureaucratic leadership style, Joko Widodo popularly known as Jokowi introduces egalitarian leadership style and pro-people.Through blusukan, Jokowi is collecting aspirations simultaneously to resolve the problems faced by the people. Now, blusukan becomes "mandatory" for the members of the rulingWorking Cabinet.

10 | THE PRESIDENT MAGAZINE DECEMBER 2014

COVER STORY

t’s been for decades that people experiencing the bureaucratic leadership style, emphasizing the effectiveness on the basis of rules and procedures. The leaders usually play by the rules and procedures that are often only effective against the implementation of rules and I procedures, but not necessarily effective to reach the national goals. When Jokowi as the mayor of Solo was introducing new egalitarian leadership style, the people were awe-struck. Jokowi’s blusukan proved capable to make a leader to be closer to the people. Through blusukan, the former furniture businessman from Solo can find out the real problems in the grass root, their aspirations and find the best solution for the problems faced by the people and the government. Blusukan is then synonymous with Jokowi. Blusukan, as well as Jokowi, became more popular after he was elected as the governor of Jakarta. In this capital city, Jokowi maintains his blusukan leadership style. Not even two years as governor, Jokowi managed to become the seventh president of Indonesia. Meaning of Blusukan If we look for the meaning of blusukan in Bahasa Dictionary (KBBI) or General Dictionary Indonesian Language, it certainly does not exist. The word of blusukan is not Indonesian, but the Javanese language. We have to look for it in the Javanese language dictionary. In Javanese dictionary (Bausastra Jawa) authored by Widodo, et al blusuk (mblusuk) literally mean entering into a place. Blusukan means an activity conducted by a person by entering a place to find out the conditions in the area in order to get something. Blusukan has been popularized by Jokowi since serving as the mayor of Solo. The Jokowi’s activity is solely to determine the condition and the actual state of society, including the problems that exist in the community to inspire the development programs to be applied, evaluating the effects of the programs applied whether the programs have met the target and beneficial for the people under his leadership. Jokowi’s blusukan is interpreted as a leadership style and a symbol of pro-people activity because in it, there is a direct interaction between the leader and the people he leads. Blusukan is an activity that eventually becomes sacred and must be done by the leader. People, who have gotten tired of the arrogance of the previous leadership style, are ended up liking Jokowi’s blusukan activity. The Function of Blusukan For Jokowi, blusukan has a significance role in running his administration. According to Jokowi, a leader must go down straight to the field to see the real conditions that exist and are not just receiving reports from the subordinates. "Management control is needed. Do not believe in merely the reports," said Jokowi. Jokowi added blusukan is one way to hear complaints directly. The most important thing for a leader is being able to hear the wishes of the community. "We must know what the people want; after knowing what they want, then we formulate the vision and mission to relate with the wishes of the people. By this way, it will be easier to convey a message to them," he said. By regarding blusukan to have significant function and play an important role in running the government, Jokowi has asked his Working Cabinet members to also doing blusukan to learn the real problems and collect the people's aspirations. Once in the offices, the ministers started doing blusukan with their own styles. BY JOKO HARISMOJO (jok) THE PRESIDENT MAGAZINE DECEMBER 2014 | 11

COVER STORY

Blusukan by Ministers of Working Cabinet President Joko Widodo (Jokowi) has asked the ministers of Working Cabinet to go blusukan (impromptu visits down to the field) in order to know the real condition in the field and use it in formulating the policy that meets the peopleâ&#x20AC;&#x2122;s needs. In response to the command, several ministers held blusukan right away in their first days of works. Here are the ministers:

12 | THE PRESIDENT MAGAZINE DECEMBER 2014

THE PRESIDENT MAGAZINE DECEMBER 2014 | 13

Susi Pudjiastuti The first blusukan done by Minister of Maritime Affairs and Fisheries Susi Pudjiastuti was conducted in his hometown, Pangandaran, West Java, on Saturday, 1 November 2014. With her private plane, Susi visited the graves of his parents before going for blusukan. Then Susi reviewed the construction of the fishing port of Cikidang which has been stalled for seven years. There was no docking facility for the boats while the auction place wasnâ&#x20AC;&#x2122;t built yet. The fishermen have been complaining on how difficult it is now to catch the fish with their small boats. Susi asked the fishermen not to use small-hole nets again as it will destroy small fish and upset the balance of the ecosystem. The Minister also promised to complete the construction of the Cikidang Port.

Hanif Dhakiri Minister of Manpower Hanif Dhakiri was into the public spotlight because of the action in jumping over the fence when blusukan. On Wednesday, 5 November 2014, Hanif conducted spot checks to the street of Asem Baris Raya, Gang Z, Tebet, South Jakarta. What stealing public attentions was that Hanif forced himself to climb over the fence surrounding the house for female workers (TKW) to be sent abroad, when the manager refused to open the gate and let the minister in. In that inspection, Hanif found that the house did not match the standard set by the Ministry of Manpower in the Ministerial Decree No. 07 of 2005 on the standards in providing the temporary house for Indonesian workers to be sent abroad. One of the standards is one person gets one mattress to sleep. In that particular house one mattress was used by more than one person.

14 | THE PRESIDENT MAGAZINE DECEMBER 2014

Ignasius Jonan On Wednesday, 5 November 2014, Transport Minister Ignasius Jonan visited three places, namely Soekarno-Hatta International Airport in Tangerang, Tanjung Priok Port in North Jakarta, and Halim Perdana Kusuma Airport in East Jakarta. At the Soekarno Hatta Airport, Jonan found a number of shortcomings. At the Health Clinic in the Domestic Departures of Terminal 1A, he considered it inadequate. The clinic, provided by the Ministry of Health, was only manned by two officers. There was no doctor in the medical facility. "Where is the doctor?" Jonan asked to one of the officers. Jonan then spoke with several officials of PT Angkasa Pura II there. He asked the company to cooperate with the Ministry of Health to improve the quality of the clinics at the airport. Another fault he found was the un-uniformity of the information boards. Thatâ&#x20AC;&#x2122;s because some of the boards were made by Angkasa Pura II, while the others by airline company Lion Air. "Angkasa Pura should manage the boards to make them uniform," said Jonan.

Marwan Jafar

Basuki Hadimuljono Sworn in on 27 October 2014, Minister of Public Works and Public Housing (PU Pera) Basuki Hadimuljono started to work fast. He immediately did the blusukan to monitor the progress of Cikampek-Palimanan toll road project at the length of 116.75 kilometers on Wednesday (29/10). The toll road, to be completed in the second quarter of 2015, is a part of the Trans Java connecting Cikampek to Surabaya with 705 kilometers long and is divided into 9 sections. "It's okay (to be dirty), going down the field is like this. If you do not check yourself, how will you know whether the quality is exactly like in the report," he said. After blusukan in the Cikampek-Palimanan project, Basuki went to Jatigede Dam, and salt farming in Cirebon where he spent about two hours, until 17.00. About Jatigede Dam, Basuki explained the his Ministry is responsible for ensuring this project to be functional, so as to meet the needs of irrigation for 90 hectares of paddy fields in Cirebon, West Java. When the dam is fully operational, then these fields can harvest two times a year.

Minister for Rural, Development of Disadvantaged Regions, and Transmigration (KDPDTT) Marwan Jafar did his first blusukan in Lebak Regency, Banten. He visited the suspension bridge in the hamlet of Rancagede, Cimarang District and the District Office of Gunung Kencana. The Ciujung suspension bridge in the Sarageni Village is one of hundreds of bridges in poor condition. This bridge connects three districts, namely Cimarga, Cibadak and Cikulur. "How's it going, this bridge is broken isnâ&#x20AC;&#x2122;t it," said Marwan, Tuesday (04/11). Ministry of Rural Development of Disadvantaged Regions and Transmigration (KDPDTT) plans to upgrade the 340 suspension bridge in Lebak to become concrete bridges. The reason is that many suspension bridges are not feasible anymore. "There are villages with 340 suspension bridges that will be replaced, so there will be no suspension bridge anymore," he added. Jafar also expressed his concerns about the condition of Lebak Regency which only has suspension bridges to connect villages and districts. Such a bridge has the potential to harm the passersby.

Trio Ministers Three economic ministers, Minister of Trade Rachmat Gobel, Minister of Agriculture Amran Sulaiman, and Minister of Cooperatives and SMEs AAGN Puspayoga did the blusukan in Kramat Jati Central Market, Jakarta, early Saturday (01/11). The blusukan lasted for more than 1 hour. All traders of vegetables, starting from tomatoes, peppers, to potatoes are met by the three ministers. Agriculture Minister Amran advised the traders, especially the ones selling fruit to create more attractive packaging. (jok) THE PRESIDENT MAGAZINE DECEMBER 2014 | 15

INDEPTH

9 Days, 3 Countries, 51 World Leaders,

and Bilateral Trade Deals BY HENDRA MANURUNG

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The center of the world economy has been moving to Asia even faster than anticipated. As a result of the world financial crisis, this process accelerated. Rather than 1989 to 1991 at the end of the Cold War marking the critical point, as many in the western countries has decided, some eyeing the emergence of the G-20 with eight states from the enlarged 18 nation of East Asian States (EAS) consider this to be the actual turning point. As the Cold War ended, Asia Pacific Economic Caucus was formed in 1989 in Canberra, Australia, bringing together states from four main continents (Asia, Australia, America, and Europe) on both sides of the Pacific region. Joko Widodo, a commoner who was born in a Javanese slum, was sworn in on 20 October 2014 as president of Indonesia, completing an improbable political rise from Surakarta hometown Mayor, and Jakarta Governor to leader of the world’s fourth most-populous nation. He’s 53 years old, and the first Indonesian president not to have emerged from the country’s political elite or to have been an army general. He succeeded Susilo Bambang Yudhoyono, who stepped down after serving two five-year terms in 2004-2009 and 2009-2014. On 8 November 2014, in his first official overseas trip since taking office on 20 Ocotber 2014, President Joko "Jokowi" Widodo arrived in Beijing on Saturday evening to attend the annual Asia Pacific Economic Cooperation (APEC) summit, a prestigious well known summit for 21 Asia-Pacific leaders on Nov. 10 and 11, 2014. Joko “Jokowi” Widodo also hold bilateral talks with Chinese leaders. Jokowi is scheduled to hold a bilateral meeting with China President Xi Jinping and Prime Minister Li Keqiang on 9 November 2014. Thus, understanding of the importance of Chinese business to the Indonesian economy, Jokowi will also meet with a

number of prominent Chinese businesspersons and travel to Tianjin to witness firsthand the city's highly efficient integrated port service center and container port management system. He will also visit the Beijiang power plant. Afterward, President Joko “Jokowi” Widodo flies to Nay Pyi Taw, Myanmar, to attend the 25th the ASEAN summit on Nov. 12 and 13, 2014. After concluding the Asian tour, Jokowi headed to Brisbane, Australia, on 14 November 2914, to attend the G20 annual summit, a grouping of the world's biggest economies. The event is scheduled on Nov. 15 and 16, 2014. No bilateral meeting is scheduled with host Prime Minister Tony Abbott, who flew to Jakarta to attend Jokowi’s inauguration and personally appealed for his attendance at the summit. During the overseas trip, the President is accompanied by First Lady Iriana, daughter Kahiyang Ayu, Coordinating Economic Minister Sofyan Djalil, Trade Minister Rachmad Gobel, Foreign Minister Retno LP Marsudi, Cabinet Secretary Andi Widjajanto and Rizal Sukma. It is amazing that Jokowi's entourage consists of only 51 persons, far fewer than his predecessor Susilo Bambang Yudhoyono's , which consisted of some 80 officials, aides and journalists. Jokowi returned to Jakarta on Nov. 16, 2014. What did President Joko “Jokowi” Widodo bring to the nation after his 1st presidential visit abroad ? President Joko “Jokowi” Widodo’s vision to make Indonesia the world’s maritime axis has prompted advanced developed countries, to strengthen their countries’ bilateral partnership with maritime power. On 5 July 2014, Joko Widodo, as presidential candidate has expressed his idea on “Indonesia’s visionary position on world maritime axis and hub for regional maritime”. His statement signaled country’s powerful bargaining position as THE PRESIDENT MAGAZINE DECEMBER 2014 | 17

world largest archipelago with its Sea Lanes of Communications strategic possesses led to many countries compete to dominate the maritime route around Asia Pacific. Sooner or later, modernization of maritime and air power should be accelerated to overcome underdevelopment quality and quantity of main weaponry system. Thus, Joko Widodo’s idea of Indonesia’s world maritime axis is a clear signal for others, which this country would back up into a national maritime power with concentrated economic growth, as diplomatic bargaining power, and political military strategy on the territorial dispute management acquisition, and control of maritime border areas. Elected president, Joko “Jokowi” Widodo prioritized Nawa Cita concept as Nine Priority Agenda, which the state defense budget allocation will be increased to 1.5 percent of gross domestic product alone. Thus, through this research, the writer is eager to elaborate why Indonesia is interested to become a world maritime axis ? The quality of Indonesia’s sea and air military power Indonesia is a still biggest reason for national contribution to revitalize its potential efforts in establishing a new balance of power in order to keep the peaceful harmonious stability on the whole region. Therefore, in the period of the next two decades, Asia will be a center of the world economy due to its strongest economy which is mostly dominated by China, Japan, and India. In 2050, Indonesia is predicted to be recognized world major economy. To conclude, impact of current Indonesia’s transformational leadership on how to strengthen regional cooperation and Southeast Asian geopolitical mandatory is automatically has caused surrounding arena to be prone to foreign threats. Indonesia’s world maritime axis must be supported throughout Indonesian national assets that could realize the idea of a living nation for global resources, together with human resource land that already sluggish and less proactive. Mental revolution that proclaimed by elected president would have to be read in the spirit of old mental orders yet business as usual. Strengthening Indonesia-China Bilateral Relations On 4 November 2014, President Joko “Jokowi” Widodo received an official invitation from Chinese President Xi Jinping to attend the Asia-Pacific Economic Cooperation (APEC) summit on Nov. 9-10, 2014 in Beijing. Thus, according to Indonesian government perspective, China is Indonesia’s largest trading partner, with US$52.45 billion in total trade between the two countries in 2013. In the same year, China’s direct investment in Indonesia reached $296.9 million, comprising 411 projects. “I believe as long as [it] embraces the principles that ensure our national interests and bring benefits for the country and the people, I am open to [it],” Jokowi said. China was Indonesia’s largest trading partner in 2013 His attendance at the APEC summit in Beijing has been the President’s first international appearance. Apart from the Beijing event, the President is scheduled to attend the bi-annual ASEAN summit in Myanmar, which will be followed by the East Asian Summit on Nov. 12-13. Jokowi is also expected to participate in the meeting of the world’s 20 largest economies in Brisbane, Australia, on Nov. 18 | THE PRESIDENT MAGAZINE DECEMBER 2014

15-16, although he has not confirmed his attendance. Initially Jokowi was reportedly to go to Australia for the summit. At least in public there is still no report that Australian Prime Minister Tony Abbott has officially invited Jokowi to the Brisbane summit. During APEC Summit meeting in Beijing, in Joko “Jokowi” Widodo first encounter with US President Barack Obama, he told the leader of the most powerful country in the world that Indonesia was a model where Islam and democracy existed hand in hand in presidential election 2014. Thus, in their meeting on the sideline of the Asia Pacific Economic Cooperation (APEC) Summit in Beijing, China, Jokowi said that Indonesia, having the world largest Muslim population, had illustrated democracy at its best as seen in the peaceful transition of power during the recent legislative and presidential election. Before, when Chinese Prime Minister visited Jakarta, Indonesia and Chinese foreign minister discussed on regional security, trade, economic cooperation, and Jokowi’s visit to Beijing. It was the first encounter between the two foreign ministers since the appointment of the former ambassador to the Netherlands to the post, replacing Marty Natalegawa in October 2014. They are 4 (four) priorities concern in understanding Indonesia and China relations during APEC meeting, such as (1) bilateral economic cooperation; (2) infrastructure development; (3) natural-resource management; (4) industrial-zone development and the energy sector. Supposed that China’s economic influence, as one of Indonesia’s most significant partners in most cooperative projects can develop and strengthen the countries’ bilateral relationship which would be focused on the benefits to the Indonesian people social welfare in order to ensure peace and stability in the Asian region for the next five years.

(source: www.indonesianewsstand.com)

(source: http://www.skanaa.com)

(source: http://www.pikiran-rakyat.com)

(source: http://cdn-media.viva.co.id) THE PRESIDENT MAGAZINE DECEMBER 2014 | 19

In 2015, Jakarta and Beijing will celebrate 65 years of diplomatic relations, as well as the 60th anniversary of the 1955 Asia Africa Conference in Bandung West Java. Therefore, Indonesia government needs to emphasize on the fundamental point that a peaceful and prosperous Asia-Pacific benefits the peoples of Indonesia and of the region. Indonesia Ministry of Foreign Affairs is totally committed to the country’s strategic position on world maritime axis and, in particular, is dedicated to ensuring that Indonesian economic engagement with the region continues to be robust and reflects that overall commitment and policies consistency. On 9 July 2014, electoral presidential candidate debate in Indonesia powered up a national discourse about the country’s intent, capabilities, and roadmap as a maritime power in the Indo-Pacific region. Indonesia’s newly installed president, Joko Widodo, popularly known as Jokowi, promised in his election manifesto in May 2014 to 3 (three) main agenda, they are : 1) Focus on strengthening Indonesia’s maritime security; 2) Expand the canvas of regional diplomacy to cover the entire region of the Indo-Pacific; 3) Project the Indonesian navy as a respected regional maritime power in East Asia. Also, Jokowi announced in June 2014 that he aimed to transform Indonesia into a “world maritime axis” (poros maritim dunia). He reaffirmed his vision after being declared victorious winning presidential election in July 2014 and called upon all citizens to “work together to develop Indonesia into a global maritime axis, a global civilization hub”. While taking the oath of office to become Indonesia’s seventh president on October 20, 2014, Jokowi reiterated his call to transform Indonesia into a maritime nation and invoked the slogan of “Jalesveva Jayamahe” (in the ocean we triumph). Thus, Jokowi’s leading confidence articulations are an important step forward in Indonesia’s national leadership effort towards developing a grand maritime strategy in Asia Pacific region. His strategic vision goes beyond the idea of merely achieving maritime security and seeks to transform Indonesia into a maritime power. He is the first president in democratic Indonesia to publicly promulgate a maritime security doctrine, taking the debate out of the pages of the policy documents and placing it into the domain of a broader politico-strategic discourse. In light of debates and discussions, this paper attempted to describe and analyze Jokowi’s leadership and what does it mean for Indonesia’s maritime power in the coming years. While the East Asia-Pacific region offers enormous opportunities, there are certainly critical challenges as well. Indonesia has clear shared interests to address these challenges by working together towards greater energy and environmental security. For example, rapid economic and population growth has created enormous strains on the region’s food, water, forest, marine and energy resources. In many areas, the increased use of fossil fuel for industries and transportation has resulted in dangerous levels of pollution that in turn pose dangers to people’s health and accelerate climate change. On the political and security fronts, the resurfacing of long-standing territorial disputes threatens the stability of the region. How Indonesia responds to these challenges will determine its long-term ties to the 20 | THE PRESIDENT MAGAZINE DECEMBER 2014

(source: http://assets.kompas.com)

region, as well as the Asia Pacific regional political economy stability beyond implementation of Free Trade Area regime in year 2020. Through the only leading idea on Indonesia’s world maritime axis, President Joko “Jokowi” Widodo recognized that Indonesian economic ties to the region are the fundamental underpinning of its bilateral; relationship and, for the overall strategic balance of power to be successful as Indonesian people must get the economic component right. The tradition of political realism is realpolitik, power politics, which has a long history that is typically traced back to the great Greek historian Thucydides in the 5th century BC. Although dominant attitudes towards realism have varied, realist arguments and orientations have been central to the Western theory and practice of international relations. In particular, modern international society, whether dated from the era of Machiavelli at the turn of the sixteenth century or that of Hobbes in the mid-17th century, has been closely linked to realist balance of power politics. Thus, the significance relevance between realism and international theory is especially strong in the 20th century. International relations first emerged as an academic discipline before and immediately after World War I (1914-1918), largely in reaction against realist balance of power politics. Then this discipline was reshaped immediately before and after World War II by self- identified realists such as E. H. Carr and Hans Morgenthau (1945-1990). Some prominent scholar practitioners, such as George Kennan and Henry Kissinger, have called themselves realists. Therefore, for most of the post-World War II era realism has been the dominant paradigm in the Anglo-American study of international relations (1990-present). Even in the post-Cold War era of globalization, realist theories, although much less dominant, still provide a substantial context and motivation for many of the most important theoretical debates in the field.

(source: http://www.kemlu.go.id)

(source: http://www.merdeka.com)

(source: http://setkab.go.id)

(source: http://cdn.metrotvnews.com)

(source: www.merdeka.com)

INSIGHT

JALESVEVA JAYA MAHE, ON THE SEA WEâ&#x20AC;&#x2122;RE GLORIOUS BY DHIYAN W. WIBOWO

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A number of new hopes are stretching as far as the eye could see the future after Joko Widodo and Jusuf Kalla elected as president and vice president for the period of 2014-2019. Euphoria filled the air massively when the General Elections Commission (KPU) declared Joko Widodo and Jusuf Kalla as the seventh president and vice president, after winning the direct presidential election on 9 July 2014. New hopes flourishing that a clean, transparent and pro-people government will be managed by the pair who won 70,997,833 votes or 53.15% of the total voter in the presidential election on 9 July. They beat their rivals of Prabowo-Hatta Rajasa who got 62,576,444 votes or 48.65%. Close to all people, who call him Jokowi, is the personality of the former mayor of Solo and governor of Jakarta. With his impromptu visit activities (blusukan) he also created a new trend on how to be close the needy. He did not hesitate to go into the slums areas under his territory, in a bid to hear directly what people want to say. In fact, he did not hesitate to go down on the sewer to check on it and rivers with heaps of garbage in search for a flood prevention solution. This one particular figure is known to have a very populist approach as he tried to run his programs to build the city. People still remember 22 | THE PRESIDENT MAGAZINE DECEMBER 2014

on how he tried to move the street vendors in the Banjarsari Park downtown Solo to a new location on Klithikan Market. Jokowi has managed to break the myth that in order to move street vendors, the government had to face a dispute that could lead to clashes. He broke the myth that in order to move the street vendors (PKL), the government should send the Civil Service Police Unit (Satpol PP) carrying sticks or even firearms. Here we can see how patient the leader who was born in Surakarta 21 June, 53 years ago. He did not come to the street vendors with municipal police to evict them, although his policy was reinforced by the regulation on city spatial planning. Instead, he invited the vendors to just have dinner with him at the official residence of Solo mayor. It is reporter that he invited the street vendors to dine with him up to 52 times. The result was closeness between the common people and their leader. From the weekly dinings, Jokowi who was accompanied by the Deputy Mayor of Solo FX Hadi Rudyatmo, could figure out what the vendorsâ&#x20AC;&#x2122; needs for their relocated. Not just a lip service, Jokowi also promised to find a solution in the form of provision of infrastructure and facilities needed by the traders in the new place, in Notoharjo Klithikan Market, Semanggi. So that finally the traders received the

reasons and willing to be relocated. What more interestin is that the procession of the street vendor relocation was done by Javanese custom. On the relocation day, a carnival was held with the magistrates and officials of Mangkunegaran Palace while then Solo Mayor Jokowi riding a horse on the front row. The cortege was followed by a row of traditional heritage from the palace and the palace’s traditional army, with the back sound of gamelan music. At the very back of the parade were about 900 vendors who were bringing their stuff to a new location. It was unique, making the parade which was held on 26 July 2006 becoming a very interesting tourist attraction. The success in the relocation of street vendors in the Banjarsari Park Solo without friction marked as a leader who will not leave the people in implementing his policies. He immediately got a lot of public sympathy. In fact, every resident in the city of Solo felt proud when Jokowi must leave them to rule Jakarta as its governor before his second term as Solo mayor ended. His performance in Jakarta, although did not govern in full five years term, he has also given Jokowi’s leadership style which close to the people. He continued the tradition of 'blusukan' to the slums. He conducted unannounced inspections to each institution under his leadership, to keep up the standard in servicing the community. He did not immediately bring a ‘magic’ to Jakarta. Even in the first three months of his leadership, Jakarta was hit by devastating floods that drowned a number of areas. The protocol road of M.H. Thamrin even had a giant pool when a part of embankment to block the stream the West Flood Canal in the Latuharhari area was broken. He became more serious in looking for a solution to deal with flood in Jakarta; from the plan of building a dam in Bogor for retaining the flow of water from the area of Bogor and Puncak, to the utilization of reservoirs in Jakarta as a water catchment area. It's not a secret of course that most of the reservoirs in Jakarta has narrowed due to the misuse and silting, including making the bank area as a place to live illegally by some people. Last year the government of Jakarta chose to revitalize Pluit Reservoir to function it as a water catchment area, in anticipating the annual floods in Jakarta. Not just cleaning up and building the reservoir area into a beautiful place, Jokowi along with his deputy Basuki Tjahja Purnama or Ahok provided convenience for the residents around the reservoir that has been revitalized by providing them flats in Marunda. Although there are a number of problems in relocating the settlers of Pluit reservoir to the flat, Jokowi again showed that in solving the problems at the grass roots, it should not make lower class people as a victim. He participated in providing a solution for those who are affected by his development programs. 24 | THE PRESIDENT MAGAZINE DECEMBER 2014

Now about his habits to conduct unannounced inspection, it is also seen by the public as a consistent move of Jokowi to provide the best standard of service to society. According to Jokowi, he must continue to supervise the provision of public services. "I will continue to check on it," he said during a signing of agreements with the Corruption Eradication Commission in March 2014. For him the unannounced inspection is one of the efforts to improve the public services. The efforts to improve the public services system had been started a year ago through online tax services for restaurants, hotels, entertainment, and parking, as well as e-budgeting, e-procurement, e-purchasing, e-catalogs, e-auditing, to online permit in getting the license in erecting a building. With all his moves which are judged clean, transparent and have a commitment to serve, it’s understandable if he gets public sympathy. When the Indonesian Democratic Party of Struggle (PDIP) pointed him as a presidential candidate, and paired with the former vice president Jusuf Kalla, people no longer cared which party nominated him. In fact, a study and a survey conducted before the election was held, there was a prediction that Jokowi would boost of votes for PDIP in legislative election. Although it turned out not too big, PDI-P won the legislative election with 18.95% of votes. Supports from Foreign Countries

"Apa Kabar Pak Jokowi? (How are you Mr Jokowi?)" -Barack Obama

On the date of announcement of the results of 2014 presidential election recapitulation by the General Elections Commission (KPU) on 22 July, stating that the pair candidates number two Joko Widodo and Jusuf Kalla won over Prabowo - Hatta Rajasa, there were not only the supporters celebrating his victory. A number of congratulations and statements, conveying there will be a new hope in Indonesia under the leadership of Jokowi, also came from abroad. Barack Obama is one of the world leaders who congratulated Jokowi directly by telephone. According to Jokowi, Obama called him on Wednesday (23/7), right at 11.00. “Speaking in Bahasa. He said, 'Apa Kabar Pak Jokowi? (How are you Mr Jokowi?)' Then continued by saying congratulation. We will meet in China. That’s all," said Jokowi at City Hall, Wednesday (23/7). What Obama meant about meeting in China is a meeting of the leaders of Asia-Pacific Economic Cooperation (APEC) member countries. The event is held in November 2014, a month after Joko Widodo-Kalla was inaugurated as president and vice president on 20 October.

Jokowi said that he talked for two minutes and did not discuss the issues of the relationship between the two countries or international issues. Obama merely congratulated on the election of Jokowi - JK as the president and vice president. Other major countries, namely the UK government through the Secretary of State Philip Hammond, congratulated and wished Jokowi to be able to make progress in the country. "I congratulate Joko Widodo for his victory in the presidential election 2014 following the official announcement of the General Election Commission yesterday," Hammond said as quoted by the BBC. "I also congratulate the people of Indonesia to the success in holding the democratic election. I look forward to working with Joko Widodo and his administration to continue making progress in the important sectors and further strengthen the relations between the UK and Indonesia," he added. Not to forget the Prime Minister of Singapore Lee Hsien Loong also offered congratulations via social media Twitter, and expressed his hope that both countries can have better relations under the leadership of Jokowi. While from the Kangaroo country, Australian Prime Minister Tony Abbott congratulated Jokowi, praising the peaceful election having taken place in Indonesia. He was also reportedly expressed his congratulation by telephone, the first before Barack Obama. In a statement about the presidential election won by Jokowi, he called the election was a significant achievement. "Indonesia is the third largest democratic country in the world and should say congratulation on an incredible transition in the field of democracy and the holding of elections," Abbott said in a statement. He also mentioned the relationship with Indonesia was so important, because the two countries have a long history and varied interests as well as common challenges. "We have enjoyed a productive partnership and extensive partnerships covering the fields of business, education, defense, security and community relations," he said. Hopes do not only arise from the domestic community. The world community has seen so many hopes that grow in Indonesia, under the leadership of duo Jokowi - JK. Kishore Mahbubani, Dean of the School of Public Policy Lee Kuan Yew at the National

"Unity and cooperation is a prerequisite for us to be a great nation.We will never be great if stuck in divisions and disunity. And we never truly independent without hard works." University of Singapore stated that Jokowi will face the challenge of the power of parliament which is not that aligned to him. As it is known, the Coalition of Red White made up of parties supporting his rival in the presidential election getting bigger portions, even dominates the key positions in parliament. "Fortunately he is a skilled politician, popular but not populist, with a persuasive power that is extraordinary," said Mahbubani in his column writing. With leadership qualities he possesses, Jokowi is expected to be able to give results of a number of programs. This can be seen by Mahbubani of the success in moving the slum dwellers in the Pluit Reservoir surrounding to another area, for the sake of urban development. Under its leadership, the MRT project can be launched after a delay of over 16 years. The author of the book "The Great Convergence: Asia, the West, and the Logic of One World" is even equate Jokowi with Narendra Damodardas Modi who is the current Prime Minister of India and President of China Xi Jinping. All three, according to Mahbubani, are leaders who focus on economic development. While Jokowi with his background as a businessman as well as an exporter of furniture will bring it to the level of knowledge and experience that is not owned by previous presidents. Armed with his business acumen, he understands that Indonesia must improve its logistics sector if it is to 'connect' with the world. "Maybe they are all pragmatic. They know that in order to achieve rapid economic

growth and modernization, they need to compromise with the opposition in the country and adopt best practices from the outside. They want to enter the arena of modern world and improve the lives of its people. And a better life for one third of the world community under the leadership of the three of them will be beneficial for all of us," said Mahbubani. Not just expectations about the efforts for economic development, from other parts of the world also appeared the hopes that Jokowi will able to suppress intolerance friction and guarantee religious freedom. Such expectation appeared on website of News VA, an official news network of Vatican as the center of the Catholic religion in the world. On that website, it was said that Jokowi and his administration have priority to address the issue of religious intolerance that often arise in Indonesia. Non-governmental organization Christian Solidarity Worldwide (CSW) as reported by News VA said there has been violence and discrimination against non-Muslim groups as well as religious beliefs in Indonesia. Therefore the institution published a report titled "Indonesia: Pluralism in danger. The rise of religious intolerance". Mervyn Thomas, CSWâ&#x20AC;&#x2122;s Director said the seventh president of Indonesian hopefully will able to protect and uphold freedom of religion and make it a priority of his administration. "We hope Joko Widodo's inauguration as president of the Republic of Indonesia will bring a new era of religious freedom, peace and stability in Indonesia," he said.

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Moral Supports from the People Seeing so many expectations placed onto the shoulder of Joko Widodo, it’s not an overstatement if the people feel the need to give moral supports by celebrating the day of his inauguration as president with a party of the people.Yes, on 20 October 2014, after the inauguration of Jokowi and Jusuf Kalla as the seventh President and Vice President, a party of the people was held as a form of gratitude for the election of a leader who sided with the people. According to the Chairman of the National Committee of the People Thanksgiving (Syukuran Rakyat), Abdee Negara who is also guitarist of Slank group band, the people’s party was not involving Jokowi at all. Even the costs incurred for the implementation of the People Thanksgiving event came from the volunteers. He could not say how much money was spent for show. "Because of the wide range of volunteers, so until now we cannot count," Abdee said in a press conference of People Thanksgiving National Committee, at Warung Daun, Cikini, Jakarta (15/10). The volunteers held a People's Movement 20 October (Geruduk) in the form of a folk festival full of fun, festive, and peace. Interestingly, Abdee also claimed to have asked the willingness of a number of artists who have performed at the campaigns of Red White Coalition for supporting the success of the people’s party. One of them was Anang, a singer who managed to be elected as a member of the House of Representatives from the National Mandate Party (PAN), the Electoral District IV of East Java. PAN is one of the parties in the Coalition of Red White formerly rival to Jokowi with his Great Indonesia Coalition. In the folk festival it was also held Concert of Three Fingers Greeting at the National Monument performing dozens of artists from home and abroad. Arkarna band from England is one of those who are willing to perform at the show 26 | THE PRESIDENT MAGAZINE DECEMBER 2014

without charging a penny. "We are happy when Arkarna said they will perform for free, and they come here at their own expense," said Abdee. The concert started at 11:00 am, while the People's Party event was filled with hundreds of culinary sidedishes provided free of charge for visitors. The whole series of events lasted until 22:00 pm with the peak of the release of lanterns, witnessed by the President and the Vice President Jokowi-JK. A new hope is rising. However, people should not be carried away by all the expectations without hard works, supports, monitoring and scrutinizing all programs run in keeping the promises during the campaigns. As being stated by Jokowi during his inauguration at the Parliament House, he has taken a vow that has a deep spiritual meaning, and confirmed his commitment to work hard to achieve a common will as a great nation. "Now it is the time we unite hearts and hands. Now it is the time, together resume the next super difficult history test, which is reaching and realizing Indonesia's political sovereignty, economic self-reliance in the field of culture and personality," he said in his speech. Furthermore, he expressed confidence that the heavy duty can be shared with unity, mutual helps and hard works. "Unity and cooperation is a prerequisite for us to be a great nation. We will never be great if stuck in divisions and disunity. And we never truly independent without hard works.”

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INSIGHT

PATHS TOWARD ENERGY SOVEREIGNTY It’s been years the people yearning that Indonesia can join again the prestigious group in providing world energy supplies. Indonesia was listed as one of the members of the Organization of the Petroleum Exporting Countries (OPEC), capable of exporting oil from the earth. BY DHIYAN W. WIBOWO

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A dream to be back to the heyday of national oil and gas production looks like far from reality. Just listen to what was said by Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo in the era Susilo Bambang Yudhoyono administration who revealed that Indonesia still has to import fuel as much as 350 thousand barrels per day from Singapore, Malaysia, and other countries worth US$120 million or equivalent to Rp1.2 trillion. The policy to import was taken since the national production of petroleum is hardly to be lifted to reach 1 million barrels again. Meanwhile the current national fuel demand reached 1.5 million barrels per day, and the current domestic oil production is only about 857,000 barrels per day, with a tendency on the production continues to fall. Looking back slightly to four decades ago, Indonesia experienced the period of surplus on the oil and gas production. In the period of the 1970s, we had capable of producing oil by as much as 1.68 million barrels per day. Minas and Duri Field, managed by Chevron, is one of the largest producing fields at that time. The oil surplus could occur as the domestic consumption of fuels (BBM) was still very low, only 300 thousand barrels per day. Therefore Susilo Siswoutomo said Indonesia had to immediately take steps to stop the dependency on imported fuels. “If the government does nothing, then Indonesia will import at least 2.2 million barrels per day by 2020. The fund needed will be at US$220 million," he said after the reflection of MP3EI program implementation early 28 | THE PRESIDENT MAGAZINE DECEMBER 2014

September. Now, in the era of a new government led by President Joko Widodo and Vice President Jusuf Kalla, comes a new hope for energy issues. That’s because one of the highlights in the vision and mission during their campaigns is about the energy security. Jokowi, as the president-elect was fondly called, had said that one solution he would take was the conversion of fuel to gas (BBG) and other alternative energy resources. "Actually, all knows how to do the conversion of fuel to gas or coal, but you know why not happened? Because there is vested interest," he said one day to the media. He also suggests three major strategies in his efforts to establish energy security in Indonesia. The first strategy is to accelerate the development of gas infrastructure, which according to Jokowi can be done with simplifying licensing system and providing incentives in the gas infrastructure projects. The next strategy is to use the energy in term of people’s energy. Jokowi said that people’s energy means using the energy created by the people. Indeed it needs to be studied more deeply related to the market certainty as well as efforts to reduce the production costs. It is expected to be realized with the establishment of some sort of logistics agency in renewable energy (Bulog EBT). The third strategy is the arrangement of public transportation and urban planning. Now, about this matter of transportation and spatial planning, as stated by Darmawan Prasodjo, energy expert and member of economic team in winning Jokowi-JK, as many as 20% of

"If the government does nothing, then Indonesia will import at least 2.2 million barrels per day by 2020. The fund needed will be at US$220 million" -Susilo Siswoutomo,Vice Minister of Energy 2009 - 2014

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fuel subsidy is wasted in the congestions in the city. Therefore, the spatial urban planning and public transportation is needed to be fixed to save energy. Related to the formation of Bulog EBT, Darmawan said that people who can produce a popular energy either it is made from palm oil, cassava, or whatever, will be accommodated by the agency in accordance with the economic value and not detrimental to the people who’re producing it. "People are going to produce this energy, from cassava, palm oil, hazelnut. From here, we create jobs, reduce the poverty," he said. Matheos Talakua, Post-graduate of Biology (ecology-conservation) UGM in his review related to energy security, which is becoming one of the vision and mission of Jokowi – JK, said that Indonesia has been dependent too long on oil and gas in financing the development programs. This is thought to indicate a failure of the government in the energy sector. In terms of energy use, the people of Indonesia have been accustomed with energy dependence on crude oil and coal, fossil hydrocarbons fuels that cannot be renewed.

energy of the present and the future that are environmentally friendly and communitybased. He further said that the real national energy security is local energy security, which is sourced from the utilization of local natural resources (sunlight, tidal currents and tidal waves, as well as wind). In a different occasion, Chief of the Division of Risk Management and Taxation of SKK Migas, Sampe L. Purba, in his review suggests that energy security is the availability, the indicator of the source of supply, the ability to buy (affordability), which is correlated with the purchasing power of national income per capita, and access (accessibility) for energy users to roll the wheels of life and economy. While energy independence is the ability of the state and the nation to take advantage of the diversity of energy by using natural and resources, social, economic and local wisdom in dignity, the energy sovereignty is described as the rights of the state and nation to independently determine the energy management policy for achieving the

"People are going to produce this energy, from cassava, palm oil, hazelnut. From here, we create jobs, reduce the poverty," -Darmawan Prasodjo, Energy Expert

Meanwhile, fossil fuels, crude oil and coal have an impact on the environmental health and the natural ecosystems. The pattern and habitual dependence on fossil fuels should be reduced as soon as possible when talking about the concept and strategy of the national energy security. The potential of alternative energy in Indonesia could be developed as an energy source for the community. He mentioned how big the potential of energy from the sun, considering that Indonesia is located in the equator, so it gets abundant sunshine. "The sunlight that falls on the equator has been utilized only 40%-45% by the natural ecosystems. The rest is wasted as unused solar energy. The untapped energy should be used as an energy source for the community," he said. The potential of the sun, ocean currents and tides, as well as wind, according to Matheos should be included in the concept and strategy of the national energy security, to be developed as a source of renewable energy. The energy potential could be utilized as the 30 | THE PRESIDENT MAGAZINE DECEMBER 2014

independence and sovereignty in energy. So, said Sampe, a country may be poor in natural resources or energy resources, but has adequate buffer reserves of energy, can be purchased by the people at a price that should not always cheap, and able to continuously supply the public and industry demand to drive economic growth and development. According to him, the ability to buy because of massive subsidies is like ‘doping’ pseudo-mass energy security, illusive and poisonous. Singapore or Hong Kong is an example of a country that has a good index of energy security associated with stability and diversification of supply and purchasing power. In contrast, Bangladesh is not overly dependent on conventional energy, since almost 50% of household energy needs are met from firewood, dried grass and animal waste. The Energy Independence, he said, is close to the diversification on the supply side. In the National Energy Management Blueprint 2006 – 2025, as the elaboration in the President

Regulation No. 5 year 2006 on National Energy Policy, the target is that there will be balancing the composition of primary energy, in which the new renewable energy is increased from 6.20% to 17%, consisting of biofuels 7%, geothermal 5%, solar and wind 5% and liquid coal 2%. Meanwhile, the natural resources of fossil fuel though still dominant in the range of 83%, but has been shifted from the petroleum era, with the target in the composition of natural gas 30%, coal 33% and petroleum to only 20%. According to studies in the Indonesian Energy Outloook (2010), in the period of 2010-2030 the overall energy demand is expected to grow on an average of 5.6% per year. In the meantime it takes a huge investment for energy infrastructure development. Let say the investment on the power plants with the average of US$10 billion per year, the cost for additional refining capacity reaches approximately US$16 billion, the refinery of Raw Coal Liquefaction needs US$33 billion, the investment on refinery of Biofuel is approximately at Rp11.2 trillion, while the investment on the construction of an LNG receiving terminal 6 BCFD will be at US$8 billion. The Ministry of Energy and Mineral Resources itself predicts the energy demand will be 406.15 MTOE in 2025. Faced with the large investment, high technology and limited human and financial resources, while the ability to take business risks is not equally possessed by the various elements of national economic perpetrators, then the wise strategy in natural resource management is focusing more on the energy sovereignty. For Sampe, the true energy sovereignty is more emphasizing on self-reliance and flexibility in formulating a policy. The executors of the policy implementation can be foreign or domestic companies, individual business entities or conglomerates, as well as state-owned enterprises are included, in the spirit of Public Private Partnership. "The presence of foreign capital or investment in Indonesia should not necessarily be interpreted as a transfer of sovereignty of the foreigners. Energy policy makers and industry players must be objectively and rationally measure the ability to bear the investment risks," he said. Sampe also stressed on the most important thing, which is the sovereignty of the government in formulating policies to be implemented by the business from wherever they come from. These include the freedom of the government to formulate and implement positive partiality to the national industry to boost its growth in order to compete with their foreign peers.

INSIGHT

WAITING FOR GLORIOUS MARITIME BY DHIYAN W. WIBOWO

he quotation is the excerpt from the victory speech of duo Joko Widodo - Jusuf Kalla after they were declared by the General Elections Commission as the president- and vice president- elect on 22 July 2014.

And interestingly, the victory speech was performed on the engine driven sailing boat Pinisi Hati Buana Setia docked at Pier IX Sunda Kelapa Port, North Jakarta. The location was selected to deliver the speech not without reason. Jokowi chose to speak on the ship to show its commitment in building a great Indonesian maritime sector that has been neglected. Romanus Sumaryo, from the creative team of Joko Widodo-Jusuf Kalla, said that the Sunda Kelapa Port was chosen as an analogy for the Jokowiâ&#x20AC;&#x2122;s efforts as well as vision and mission in making Indonesia the world maritime axis. Sunda Kelapa Port is considered feasible to symbolize the efforts to make Indonesian maritime industry to be on the front row. Similarly, the Twitter account of Jokowi-JK media center also said the same thing. "They chose this place as a symbol of their commitment (Jokowi-Kalla) to the development of Indonesia's maritime sector. The choice of location implies the message to restore the glory of the archipelago. By restoring the glory of its maritime." Previously Arif Budimanta, also one of the members of the Winning Team of Jokowi-JK, said that the doctrine of Indonesia as the world maritime axis initiated by Joko Widodo is not only will make Indonesia a more prosperous nation, but also have more respected roles in the international community. According to him, Indonesia as the World Maritime Axis departs from the understanding of the geostrategic of Indonesia, where waters territory of Indonesia reach 75%, as well as its strategic geographical position in the world shipping sea lanes. But he regretted that so far the potential is not utilized maximally. The economic potential of the maritime, according to him, would be more strategic if the national leaders capable in making Indonesia the world maritime axis. 32 | THE PRESIDENT MAGAZINE DECEMBER 2014

"Indonesia will also need to set up a marine expertise in various fields, ranging from the technical, technological, until strategies and international maritime laws. At a more strategic level, Indonesian people also need to strengthen their awareness of the maritime environment (maritime domain awareness/MDA)." -Rizal Sukma

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"With the doctrine of the world maritime axis, then the ocean as our front yard; the cultivation of the sea as a symbol of the progress of Indonesian future civilization; it will make Indonesia to have a strong potential to catch up and living wealthy with all the power of the sea," said Arif in Jakarta last July. According to Arif, the Doctrine of Indonesia as the World Maritime Axis ala Jokowi will eventually be realized through the concept of 'The Restoration of Indonesian Maritime'. This concept will comprise four main points, namely overcoming the black market of tuna and utilization of the Exclusive Economic Zone (EEZ), combating the illegal fishing, marine aquaculture expansion, and developing labor-intensive businesses in the maritime sector. The data of the Ministry of Maritime Affairs and Fisheries in 2011 showed that the potential revenue from the marine fisheries sector amounted to Rp65 trillion, although it was still marked by incidence of illegal fishing. While the audited data in 2012 found the potential revenue, if illegal fishing was eliminated, would be Rp365 trillion. The potential loss of the state income was so big, Rp300 trillion due to the illegal fishing. Meanwhile, on the expansion of marine aquaculture, the Jokowi team found a potential of up to 12 million hectares of new business areas in the form fishing cages and nets, the next one could be developed at least to 400 thousand hectares. Now, for carrying capacity or capital funding, Arif said that the new government under Jokowi will establish Maritime Agro Bank, so that it is projected there will be an additional state revenues up to Rp147 trillion. On the other hand, to address the black market and utilization of the EEZ, the data shows that every year the country lost its potential state at Rp14 trillion. And to deal with it, the development of fish processing industry in the fishing areas will be encouraged. Next is to increase the fish production to 1.5 million tons per year, then the addition of fishing fleets, including the construction of a modern fish market at various places. It is estimated that of the earlier development of the fish catch there would be a potential state revenue between Rp30 and Rp50 trillion. Meanwhile, from the absorption of the manpower, a step if increasing the fishing fleet and marine aquaculture is expected to absorb 6.7 million new workers, or a total of 12.3 million, adding to the 5.6 million workers of the sector that already exist today. 34 | THE PRESIDENT MAGAZINE DECEMBER 2014

Maritime-based logistics In addition to the utilization of marine resources in order to raise the revenue, the ocean space utilization is also hoped to solve problems of the high cost of logistics nationwide. The hope was raised after Jokowi took his idea to build transportation system on the sea called Tol Laut (Sea Toll). Of course this is not an expressway in the verbal sense. But a concept that will integrate sea and land logistics system, which will combine the sailing ships with the railway network. In his speech presented on the occasion of the 2014 PKB Conference in Surabaya, last August (31/8), Jokowi explained his thinking about the Sea Toll based on the condition that in fact 2/3 of Indonesia territory is sea waters. He compared with other countries which are dominated by sea area, which have been ascertained to have developed water infrastructure. "That is why I am proposing the Sea Toll. This is not a toll road. But from the west to the east there are ships passing by continuously," he said. Those ships in the Sea Toll concept will be

"If it can be done, for (the cost component of, red) transportation is now 15% of the price.While other countries can be 7% -10%.This means that the cost is so big, it must be lowered" -Jokowi covering Aceh, Jakarta, Surabaya, East Nusa Tenggara, Maluku to Papua. The lane will be the main route, while the distribution to the other islands will use smaller ships than the ones used in the main lane. Jokowi further explained that if the ships passing in the main route routinely sailing, then the prices of the basic needs in Papua will not way higher than the prices in Java. At least, Jokowi said, the price differences will only half of the price in Java. That difference, Jokowi added, even will only happen in the more remote areas inland. Jokowi gave an example of the price of cement which is sold at the range of Rp60,000-Rp70,000 per sack in Java, but could increase to around Rp1 million to Rp1.5 million per sack in Papua. For him, this condition is considered as the practice of injustice due to poor logistics system. "If it can be done, for (the cost component

of, red) transportation is now 15% of the price. While other countries can be 7% -10%. This means that the cost is so big, it must be lowered," he said. He hopes the competitiveness of domestic products will increase once the national logistics system has been integrated. On the land itself, the concept of Sea Toll will be integrated with the railway network in Sumatra, Java, Kalimantan, Sulawesi and Papua. It was reported that the development of the railway would need funds amounting to Rp350 trillion. On a different occasion, Executive Director of the CSIS (Centre for Strategic and International Studies) Rizal Sukma in his column argued that the efforts to realize the vision of Indonesia as a "World Maritime Axis" requires a process and time that will not be short. However, he said the people should not be glued to the discussion of goals, but it should immediately start working to build a strong foundation for the realization of these ideals. According to Rizal, the works to realize the idea of the world maritime axis needs to be focused at least on three basic strategies. First, the readiness of human resources. This, he said, has to begin by mainstreaming the maritime insights into the educational process. "Indonesia will also need to set up a marine expertise in various fields, ranging from the technical, technological, until strategies and international maritime laws. At a more strategic level, Indonesian people also need to strengthen their awareness of the maritime environment (maritime domain awareness/MDA)," he said. The next is that the maritime insights and MDA must be supported by, and reflected in the strengthening of maritime infrastructure. Focusing on the infrastructure development is already contained in the working plan development agenda of Jokowi-Kalla. And furthermore the development of the maritime needs a huge cost, the availability of sufficient technology, and a long term of time. "It's hard to imagine all can be done independently by Indonesia," said Rizal. Therefore, Indonesia needs to develop maritime cooperation framework in multilateral partnership to realize the goals and implementation of the development agenda of this maritime axis. For example, Indonesia could establish Indonesia Maritime Partnership Initiative together with Japan, China, India, South Korea, and Singapore. "The challenge in implementing these three strategies is certainly not easy to overcome. However, Indonesia has no other choice but to take action immediately and begin the efforts to restore its identity as an archipelago, which is located between two oceans," he added.

d / ;dŚĞ ƌŝƟƐŚ /ŶƐƟƚƵƚĞͿ ŝƐ ĂŶ ŶŐůŝƐŚ >ĂŶŐƵĂŐĞ ƚƌĂŝŶŝŶŐ ĐĞŶƚƌĞ͕ ǁŚŝĐŚ ƵƐĞƐ Ă ĐŽŵŵƵŶŝĐĂƟǀĞ͕ ƐƚƵĚĞŶƚ ĐĞŶƚƌĞĚ͕ ĂŶĚ ƚĂƐŬ ďĂƐĞĚ ĂƉƉƌŽĂĐŚ ƚŽ ůĞĂƌŶŝŶŐ ĨŽƌ ĂĚƵůƚƐ͕ ƚĞĞŶĂŐĞƌƐ ĂŶĚ ĐŚŝůĚƌĞŶ͘

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KƵƌ ĐŽƵƌƐĞƐ ŚĞůƉ ƐƚƵĚĞŶƚƐ ĚĞǀĞůŽƉ ŇƵĞŶĐǇ ĂŶĚ ĂĐĐƵƌĂĐǇ ŝŶ Ăůů ĨŽƵƌ ƐŬŝůůƐ ;ZĞĂĚŝŶŐ͕ >ŝƐƚĞŶŝŶŐ͕ tƌŝƟŶŐ ĂŶĚ ^ƉĞĂŬŝŶŐͿ

^ƚƵĚĞŶƚƐ ǁŝůů ůĞĂƌŶ ƚĞƐƚͲƚĂŬŝŶŐ ƐƚƌĂƚĞŐŝĞƐ ƚŚƌŽƵŐŚ ĞǆĞƌĐŝƐĞƐ ĂŶĚ ƉƌĂĐƟĐĞ ƚĞƐƚƐ ĨƵůůǇ ƐƵƉƉŽƌƚĞĚ ǁŝƚŚ ĨĞĞĚďĂĐŬ ĨƌŽŵ ĞǆƉĞƌŝĞŶĐĞĚ d / ƚĞĂĐŚĞƌƐ͘

ƵƐŝŶĞƐƐ ŽŵŵƵŶŝĐĂƟŽŶ ŽŶǀĞƌƐĂƟŽŶ

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d / ĐĂŶ ŚĞůƉ ǇŽƵƌ ďƵƐŝŶĞƐƐ ŐŽĂůƐ ƚŚƌŽƵŐŚ ďĞĐŽŵŝŶŐ ŵŽƌĞ ƉƌŽĮĐŝĞŶƚ ŝŶ ƵƐŝŶŐ ŶŐůŝƐŚ >ĂŶŐƵĂŐĞ

ŽƵƌƐĞ ĚĞƚĂŝůƐ ĨŽƌ ƉƌŽŐƌĂŵŵĞƐ ŵĂǇ ǀĂƌǇ ĨƌŽŵ ĐŝƚǇ ƚŽ ĐŝƚǇ͕ ƐŽ ĨŽƌ ŵŽƌĞ ĚĞƚĂŝůĞĚ ŝŶĨŽƌŵĂƟŽŶ ƉůĞĂƐĞ ĐŽŶƚĂĐƚ ǇŽƵƌ ŶĞĂƌĞƐƚ d / ďƌĂŶĐŚ͘

Jakarta: d / &ĂƚŵĂǁĂƟ ͗ 021 - 750 2616 - d / <ƵŶŝŶŐĂŶ ͗ 021 - 300 27 988 - d / ^ƵĚŝƌŵĂŶ ͗ 021 - 252 2965 d / <ĞůĂƉĂ 'ĂĚŝŶŐ ͗ 021 - 458 52 860 Bekasi: d / ^ƵŶ ŝƚǇ ^ƋƵĂƌĞ ͗ 021 - 889 60 328 Tangerang: d / ^ĞƌƉŽŶŐ ͗ 021 -531 61 062 Depok: d / ŝďƵďƵƌ ͗ 021 - 843 09 595 - d / ĞƉŽŬ ͗ 021 - 7721 3000 Bandung: d / ĂŐŽ ͗ 022 - 253 4444 d / WĂƐŝƌ <ĂůŝŬŝ : 022 - 860 60 940 - d / ZŝĂƵ : 022 - 723 4666 Surabaya: d / ^ƵƌĂďĂǇĂ ͗ 031 - 566 7773 Malang: d / DĂůĂŶŐ ͗ 0341 - 563 366 Medan: d / DƵůƚĂƚƵůŝ ͗ 061 - 455 5123 Bali: d / ĞŶƉĂƐĂƌ ͗ 0361 - 472 3000

dŚĞ ƌŝƟƐŚ /ŶƐƟƚƵƚĞ

Λ^ƚƵĚǇ ŶŐůŝƐŚd /

INSIGHT

Food Self-Sufficiency in Three Years

Food security continues to be echoed, amid more reduction of agricultural land due to the lack of state attention to the farmers. Farmers who feel disappointed choose to leave their land, leading to the low productivity of land and food production.

BY DHIYAN W. WIBOWO

tâ&#x20AC;&#x2122;s so sad to see the fact that over the past 10 years, millions of farmers in Indonesia have been 'forced' to leave the farm because of the lack of attention from the government. In fact, if we follow the data in the World Food Program (Food and Of the approximately 570 million hectares of agricultural land in the world, 500 million hectares are owned by family farmers who produce more than 57% of food production in the world. But itâ&#x20AC;&#x2122;s ironic to look at the conditions in the country. At least as many as 5.07 million farmers have left their land in the past 10 years. This was stated by the National Coordinator of the Alliance for Prosperous Villages Tejo Wahyu Jatmiko in Jakarta recently (17/10). "A total of 5.07 million farmers left the farms during 2003 and 2013, reducing the total of 31 million to 26 million peasant farmers right now," said Tejo. According to him, a family of small-scale producers has an important role in reducing poverty and hunger. They also fall into the category of the backbone of food sovereignty as well as the sustainable natural management. The problem, said Tejo, is that the basis of the food sovereignty is small-scale food production of farmers and fishermen. And this is in line with the results of the analysis of the World Food Program saying that Indonesia should pay particular attention to small-scale farmers because they contribute to the security and availability of food. Food, continued Tejo, is part of the human rights that must be protected. So the government should prioritize the welfare of

36 | THE PRESIDENT MAGAZINE DECEMBER 2014

families of small-scale food producers in order that the ideals of food sovereignty can be achieved. "The state must respect the wishes or choices of farmers, protect them and also must meet the farmersâ&#x20AC;&#x2122; needs. It's very important," he said. The condition of Indonesian food security is getting worse by the switching function of agricultural land in Indonesia. In fact, the FAO said that Indonesia is in a serious level in the global hunger index. It even is predicted to continue to deteriorate with increasing number of population, food shortages due to environmental degradation, global warming and more. Meanwhile, a number of parties also mentioned the existence of the Washington Consensus that could be a boomerang for Indonesia. As long as Indonesia is still oriented to the Washington Consensus, Indonesian cannot be independent in term of food. The Washington Consensus, which strongly suggests market share liberalization, is considered making Indonesian people cannot move freely in determining the agricultural productivity. In the midst of a situation as it is now, it seems a self-sufficiency remain a distant dream; especially amid the crush felt by the farmers due to the perceived impartiality of the state on them, as well as the incessant pressure of the market liberalization from the superpowers. A new hope emerged in the middle of the succession at the leadership of this Republic. A leader of the common people who is innocent, pure and sitting upright now leads the nation, with all his readiness to listen to

any complaints form the small people. Joko Widodo, the President-elect with his deputy Jusuf Kalla has now assumed the daunting task of creating self-sufficiency, a form of national food security which the public has long been dreaming of. Interestingly Jokowi, the nickname of former the governor of DKI Jakarta, on his first day as President has dared to promise that food self-sufficiency is targeted to be achieved within three years. It was stated by Jokowi when farmers in Bali had a teleconference communication with him. In the teleconference, Chairman of the Association of Bali Farmers, I Gede Sutata, said he hoped President to realize the expectations of prospering the farmers. "We are ready to support your program in improving the food security. We will form a brigade of food security. We hope President can support and facilitate our programs to realize it," Sutata said to the president in the teleconference (21/10). Jokowi responded by saying that Indonesia had to work hard to raise the agricultural production. The target, said the president, in the next three years Indonesia will be self-sufficient in food. "Some of the agricultural commodities will reach self-sufficiency, such as rice, which is now also still imported, sugar, corn and other commodities which are still imported," the president said. Basically, Jokowi has launched a number of programs that lead to national food security, since he underwent his campaigns as a presidential candidate before the election in July. Even in an open debate with rival of pair Prabowo and Hatta Rajasa, many people saw how

THE PRESIDENT MAGAZINE DECEMBER 2014 | 37

Jokowi has a very detailed understanding of related programs that lead to national food security. About his vision and mission towards national food security, it was conveyed clearly when he met the farmers in Tanjungrasa, Cariu subdistrict, Bogor regency, during his campaign in April 2014. At least he mentioned six points of his vision and mission in the field of agriculture and food security. First he emphasized that every productive agricultural land will not be converted to another use. He said there were a lot of agricultural lands that had been converted into residential, industrial and mining areas. He has been determined to stop this trend. Jokowiâ&#x20AC;&#x2122;s next step is highlighting the need of mentoring for the farmers. Mentoring is needed in order to make the narrow lands can be productive, and farmers are not directed towards buying imported hybrid seeds, pesticides, and chemical fertilizers. "Farmers should independently be using their own seeds, natural pesticides so they are not burdened with a lot of production costs," said Jokowi back then. Next he highlighted the agricultural infrastructure, from dams to tertiary irrigation channels that must be addressed. He also stressed on the importance of the construction of dams for new paddy fields. The quality of water also did not escape from his attention and was included in his vision to improve the quality of agricultural products. Other vision is shaping the market with shortened distribution chain, and the utilization of postharvest technologies and industry like a better packaging for the farmers' products. The next crucial thing he included in his vision and mission in creating food security is the importance of access to the working capital for the farmers. Then the establishment of an agricultural bank becomes one of the options for solving the capital problems. In the dialogue with the Indonesian Chambers of Commerce during his campaign last June, Jokowi explained that the efforts towards food security included the opening of new paddy fields has actually been designed for a long time. Unfortunately it is not realized optimally. "We have been talking about creating new paddy fields. We have never started," Jokowi said that time at Djakarta Theater building, Jakarta, (20/6). The development or the creation of new paddy fields, according to him, should be started with the construction of infrastructure 38 | THE PRESIDENT MAGAZINE DECEMBER 2014

from building a new dam to the irrigation network extending to into the paddy fields. During this time it is the other way around, so that the additional new paddy fields never happened. "Is there a new dam built over the past few years? We are targeting 20-25 dams built for the next five years. The fields can be harvested 3-4 times, but they need water," he said. Meanwhile for the opening new paddy fields, it is necessary to determine the right location to be developed; whether it will be done on forest lands or former mining areas. It must be determined first because, according to him, it is associated with the regional spatial planning. He also noted the existence of other problems in achieving the food security on the farmers side. He said that from the searching results in a number of regions, there is always a problem related to availability of fertilizers, seeds to the pesticides at the farmer level. "First of the first is what farmers need. I have asked the farmers in western and eastern Indonesia. The problem is the same, the unavailability of the fertilizers. Then secondly, the seeds and pesticides. The local seeds do not excel so much so that imported seeds have been burdening the farmers. Pesticides are also the same. They are often hard to find. It burdens the farmers," he said. He also promised to provide all the needs of farmers from the seeds, pesticides to fertilizers.

NATIONAL

Beating the Drums Marking the Start of Trans Sumatra Development A mega development project of Trans Sumatera Highway worth Rp300 trillion has been started.Without capital investment from the central government, President remains assigned state-owned construction company PT Hutama Karya to work on the four segments as the initial phase of the project with an investment of Rp30 trillion. BY ARYA MANDALA

umatra Island people should be happy. After 15 years of waiting, the mega development project of Trans Sumetera Highway (JTTS) finally begins. We know the process of assessment and planning of this project had been dragging on; even when the project has entered the stage of finding investors as well as the executor of the project. As many as three times the government held a tender, but failed to attract the bidders. The private investors seemed considering the internal rate of return (IRR) would take too long to get the breakeven point. Hence the potential investors hope the Trans Sumatra’s IRR will be at 15% - 17% or 4% -5% above the average of the interest rate of bank loans. But the government may not meet the expectations. Then in the middle of the standoff, the government finally took a 'shortcut' by assigning PT Hutama Karya (Persero) as the investor as well as the executor of the project. The assignment to Hutama was ruled in Presidential Decree No. 100 year 2014 on the Acceleration of Highway Development in Sumatra, which was signed by President Susilo Bambang Yodhoyono on 17 September 2014. That decree gives the mandate to the state-owned enterprise (SOE) to carry out the works to build four sections of highways on the island 40 | THE PRESIDENT MAGAZINE DECEMBER 2014

of Sumatra. The four section roads are Medan-Binjai, Palembang-Indralaya, Pekanbaru-Dumai-Kandis, and Bakauheni-Terbanggi Besar. The total length is 322.98 kilometers. The four roads are the first phase of the project that will connect Lampung Province with Aceh. The investment value of the construction of the four roads is Rp30 trillion to Rp40 trillion. Besides the Presidential Decree, Hutama also get some facilities to build the mega project, it can cooperate with other companies to build the Trans Sumatra through the establishment of subsidiaries. Although it is allowed to set up a subsidiary, Hutama must remain the majority shareholder. The Presidential Decree also rules that after the highway is completed, Hutama can divert some or all of its shares to its partners or other parties. By this way Hutama can use the proceeds from the stock sale as the capital for the construction of the next phase of the project. The idea of ‘build and sell’ was proposed by Minister of State-Owned Enterprises (SOEs) Dahlan Iskan. "For example, the construction of the first phase is nearing completion of 80%, it can be sold to Jasa Marga or to anyone who has the highest bid, I hope it will be Jasa Marga anyway," he said at the Parliament House, Wednesday (17/09).

Dahlan added that the work pattern refers to the infrastructure development projects carried out in China. "In China it's like that, so the development is without PMN (state capital funding) and faster," he said. Meantime the concession granted to Hutama based on Presidential Decree is 40 years. The government does not disburse the state capital funding although in the 2015 state budget it is allocated at Rp2 trillion, being proposed previously before the Decree was issued. The same case with the loan of the Government Investment Center (PIP). Even so, Hutama can use a number of funding options, for example from foreign loans, issuance of bonds or multilateral loans. In addition to the aforementioned provisions, Coordinating Minister for Economic Affairs Chairul Tanjung added that the Decree also set the time period for PT Hutama in completing the four sections of the Trans Sumatra and if the time limit was not achieved, the continuation of the project will be handed over to other. "The period is still under discussion for how long, but usually in the construction of a highway, it take 1-2 years and when it was past the deadline, the project would be given to the SOE whose shares 100% owned by the government for this is an assignment of nature," said the founder of Trans Corporation. Just a reminder, the construction of Trans Sumatra is planned to be developed until 2025 consisting of 23 segments which pass through nine provinces of Lampung to Aceh stretching along 2,628 kilometers. The detail is that it is divided into four main corridors and three priority corridors of toll roads network in Sumatra. The four main corridors will pass through the Lampung-Palembang along 358 kilometers, Palembang-Pekanbaru 610 kilometers, Pekanbaru and Medan 548 kilometers, and Medan-Banda Aceh 460 kilometers. The three priority corridors will cover Palembang-Bengkulu 303 kilometers, Padang-Pekanbaru 242 kilometers and Medan-Sibolga as far as 175 kilometers. This mega project is one of the goals in the implementation of the Mansterplan of the Acceleration and Expansion of Indonesian Economic Development (MP3I). The idea to build the Trans Sumatra Highway arose since the current roads connecting the provinces in Sumatra cannot accommodate the increasing number of the vehicles. Unfortunately, the increase number of the vehicle does not accompanied by the improvement and widening of the roads by the government. If this condition left like that, the local economy in the island of Sumatra will be stuck, and we know this island is one of the motors of Indonesian economy. The wealth of its nature has become the main supplier of mineral resources. Meanwhile its land provides rubber and palm oil as export commodities. Therefore the highway development is believed to be the solution to further spur the economy in Sumatra, which will ultimately improve the welfare of the people on the island. THE PRESIDENT MAGAZINE DECEMBER 2014 | 41

Prioritizing Two Sections

he mandate to carry out the highway project as well as the concession holding and all sorts of consequences attached to the project had been taken by Hutama Karya. The company is also committed to carry out this task well and plan to complete by the deadline given by the government. To make that expectation realized, for the first step Hutama Karya designed the business plan that will serve as a reference in the implementation of the mega project. The business plan was completed within one month after the mandate was received, so that the initial construction or groundbreaking could be done in mid-October 2014. To finance the initial works of the project Hutama Karya claimed having allocated Rp100 billion of fund. Corporate Secretary of Hutama Karya T. Ari Widiyantoro said the initial works included the feasibility study, the formation of work units, and administrative preparations. In addition, Hutama Karya claimed to soon form a Toll Road Enterprise (BUJT) for the construction of the Trans Sumatra Highway. In working on

â&#x20AC;&#x153;WHEN THE HIGHWAY STARS OPERATING, IT WILL CERTAINLY HAVE A POSITIVE IMPACT FOR BUSINESSES AS IT CAN FACILITATE THE MOVEMENT OF LOGISTICS OR THE PASSENGERSâ&#x20AC;?

42 | THE PRESIDENT MAGAZINE DECEMBER 2014

the project, Ari said his company will be ready to cooperate with the other SOEs. Thus, the project is expected to be more attractive to investors. Furthermore Ari revealed that of the four sections to be built by Hutama Karya, only two sections becoming the top priority in the first phase the development, namely toll roads of Medan-Binjai and Palembang-Indralaya. The initial investment for the two sections, Hutama Karya have prepared Rp5 trillion. While the total investment for all sections assigned to the company will be Rp30 trillion. Ary explained, to finance the two toll roads, the composition is 30% of funding will come from the company's equity and the rest from bank loans. Previously President Director of Hutama Karya, I Gusti Ngurah Putra, said he would examine the funding schemes offered by the government to finance the project. With so many options given by the government, according to him, it would facilitate Hutama Karya in seeking the right funding scheme for Trans Sumatra project. But, Gusti would calculate the plus and minus of each scheme. The most profitable option will be selected. Regarding to the payback period, which is long enough, is expected to affect the company's financial performance, that is why Ary added that he would make separate financial statement for the project in the form of a special purpose vehicle (SPV). To Hutama Karya itself, the government asked to focus on working on the project. For that Hutama Karya even was asked to drop the other infrastructure projects being or to be done by the company, such as the toll road of Medan-Kuala Namu-Tebing Tinggi in North Sumatra. In the project, Hutama Karya holds 15%

stake in the consortium of SOEs working on the project of Medan-Kuala Namu-Tebing Tinggi toll road. The three other SOEs are PT Jasa Marga (Persero) Tbk. 55%, PT Waskita Karya (Persero) Tbk. 15% and PT Pembangunan Perumahan (Persero) Tbk 15%. "It asked them to do so. It drops the project to concentrate in the Trans Sumatra Highway," Dahlan told reporters recently. He said the 15% stake in the consortium for building the Medan-Kuala Namu-Tebing Tinggi toll road would not affect much to Hutama Karya. Hutama Karya, further Dahlan, will only resign as the partly owner of the toll road. However, Dahlan ensured the state-owned construction company will still work on the construction of the toll road. "As a contractor it does not resign, but as the owner it does," he said. As it is known, the groundbreaking of Medan-Kuala Namu-Tebing Tinggi toll road had been done by Minister of Public Works Djoko Kirmanto on 23 September 2014. This turnpike with a length of 61.8 kilometers is planned to be divided into two sections namely Section I along 17.80 kilometers covering Medan-Perbarakan-Kuala Namu and Section II with a length of 44 kilometers will connect Perbarakan-Bukit Tinggi, West Sumatra. In the meantime, the commencement of Trans Sumatra construction has been welcomed by Indonesian Chambers of Commerce and Industry (Kadin) with its Chairman Suryo Bambang Sulisto said, "When the highway starts operating, it will certainly have a positive impact for businesses as it can facilitate the movement of logistics or the passengers." Even so Suryo suggested that the construction of Trans Sumatra will be balanced by improving the ferry transportation system that connects the island of Sumatra to Java.

Telkom is determined to achieve "Indonesia Global Networks" through the development of international submarine cables.Telkom through Telin, together with other world class operators joining in the Consortium of South East Asia United States (SEA-US), signed a collective labor contract on the construction of the International Submarine Cable Systems which connects Indonesia to the eastern part of the world to the United States.

TELKOM'S EXPANSION INTO THE UNITED STATE

THE PRESIDENT MAGAZINE DECEMBER 2014 | 45

PT Telekomunikasi Indonesia, Tbk. (Telkom) has officially entered the US market, marked by the opening of an office Telekomunikasi Indonesia International USA, Inc. (Telkom USA) in Los Angeles, Monday, 8 September 2014. Telkom Office USA is located at The Block Executive Suites, 700 South Flower Street, 11th Floor, Office No. 36, 37 A-B, Los Angeles, CA USA 90017. The inauguration of the Telkom office was conducted by Wholesale & International Services Director of Telkom, Ririek Adriansyah. "The launch of Telkom's USA office is a historic moment for Indonesia, because from now on Telkom which is owned by the people of Indonesia officially expanding into the United States. It certainly helps to enhance the business relationship of Indonesian-USA,

which in turn will support Indonesia's economic growth," said Ririek. Ririek added that Telkom USA will enter into wholesale business and enterprise in the United States, in addition to the other business opportunities such as services to the Indonesian community in the United States which is quite large. And last but not least, the existence of Telkom USA also will support the operation of the Telkom Group's network which keeps growing in the United States. Currently Telkom Group, through its subsidiary Telin, has had 6 PoP (Point of Presence) to support the Internet connectivity services to the United States. Telkom itself has been determined to realize "Indonesia Global Networks" through the construction of an international submarine cable, of which on 28 August 2014,

The inauguration of Telkom USA office was attended by Acting Consul General in Los Angeles, Sri Wahyu with his officials and business partners of Telin in the United States. In the series of events, there was also a lunch gathering with business people and Indonesian community leaders in the United States, such as the members of the Indonesian Diaspora Network (IDN) and the Indonesian America Business Council (IABC).

The inauguration of Telkom USA ofďŹ ce is a historic moment for Indonesia.

46 | THE PRESIDENT MAGAZINE DECEMBER 2014

Telkom through Telin joined the other world class operators in the Consortium of South East Asia - United States (SEA-US) signed a labor contract along with the construction of the International Submarine Cable system connecting Indonesia with eastern parts of the worlds to the United States. Previously it also participated in the development of submarine cable communications system linking Indonesia to the western countries to Europe through the Consortium of South East Asia - Middle East -Western Europe 5 (SEA-ME-WE 5) on 7 March 2014. Telkom also has picked up the development plan of submarine cable network, named "Indonesia Global Gateway" to connect the SEA-ME-WE 5 with SEA-US. The third major submarine cable project complements the world-scale international infrastructure that has already been owned by Telin, such as Asia America Gateway (AAG), South East Asia Japan Cable System (SJC), Batam Singapore Cable System (BSCS), Dumai Malaka Cable System (DMSc) and Thailand-Indonesia-Singapore (TIS). The inauguration of Telkom USA office was attended by Acting Consul General in Los Angeles, Sri Wahyu with his officials and business partners of Telin in the United States. In the series of events, there was also a lunch gathering with business people and Indonesian community leaders in the United States, such as the members of the Indonesian Diaspora Network (IDN) and the Indonesian America Business Council (IABC). They warmly welcomed the presence and existence of the Telkom USA office in Los Angeles, which is considered to be very precise and strategic considering the Los Angeles area is the center of Indonesia's largest community living in the United States. The existence of Telkom USA aims also to get closer to the Silicon Valley ecosystem that is the most superior and the center point of digital creative industry for startups around the world. Based on the results of a survey on startup genome in 20 innovation centers, Silicon Valley is the most conducive to the creation of new products where the startups, mentors, and investors gather in one mutually supportive ecosystem. So with that best ecosystem emerge the digital companies (DiCo) which become very well known in the world such as Apple, Intel, facebook, google, airbnb, dropbox and whatsapp. The firms have higher valuations than famous Telco companies in the world.

elkom and its subsidiaries have also won the most awards at the event in 2014 Frost & Sullivan Indonesia Excellence Awards. At the annual event, Telkom received an award as the Data Communication Service Provider of the Year and the Telecom Service Provider of the Year. The award is given directly by Country Director Frost & Sullivan Indonesia, Eugene Van De Weerd, to Director of Enterprise & Business Service Muhammad Awaluddin in Jakarta, Tuesday (23/9). In addition, a subsidiary of Telkom, Telkomsel, achieved a great success by winning four awards. Telkomsel has been named as "Indonesia Green BTS 2014 Operator of the Year", "2014 Indonesia Mobile Broadband Service Provider of the Year", "2014 Indonesia Mobile Data Service Provider of the Year", and "2014 Indonesia Mobile Service Provider of the Year". Awaluddin said, "All awards won by Telkom Group is a proud achievement as it reflects a high level of customer satisfaction of the Telkom Group’s products. Meanwhile, President Director of Telkomsel Alex J. Sinaga added, "Obviously we will continue to deliver a wide range of innovations that are supported by excellent infrastructure to provide the best experience for the customers." Telkomsel currently has 63.3 million data customers, growing by 22.3% compared to the previous year. Alex added that Telkomsel has the vision as a service provider and solution of world-class mobile digital lifestyle. "We will consistently build the country through the provision of mobile telecommunications services," he said. Aside of Telkom and Telkomsel, Telkom’s other subsidiaries also received awards, i.e. PT Infomedia Nusantara (Infomedia) as “Contact Center Outsourcing Service Provider of the Year” and Telkomsigma as “Data Service Provider of the Year”. Frost & Sullivan Indonesia Excellence Awards are given to companies that have successfully demonstrated outstanding performances in leadership, technological innovation, customer services and strategic product development and marketing strategies. Frost & Sullivan Indonesia Excellence Awards 2014 was conducted by the jury who made assessment on the achievements in the leadership, technological innovation, customer services, and strategic product development. The assessment was conducted in stages by comparing the market players and assessing the company’s performances through in-depth interviews, analysis, and extensive secondary researches in various industries (Environment, Energy, Healthcare, Automotive and Electronic). (Robert)

FROST & SULLIVAN AWARD

Telkom also has picked up the development plan of the submarine cable network, named "Indonesia Global Gateway”.

Telkom and its subsidiaries win the most awards at the event of 2014 Frost & Sullivan Indonesia Excellence Awards.

THE PRESIDENT MAGAZINE DECEMBER 2014 | 47

NATIONAL

The Quandary of National Housing Indonesia has been experiencing home deficit for many years and continues to accumulate to around 15 million units.There are seven obstacles that have been impeding the supply of houses in the country for many years. BY DWI ARISTA

he government should immediately make a breakthrough for the availability of this middle class residential community" According to Chairman of Housing and Settlement Developers Association of Indonesia (Apersi) Eddy Ganefo, the seven constraints have not been able to resolve by the government. "The first is a physical barrier in the form of limited land. In addition to the land prices which tend keep climbing, the current acquisition procedures are also not conducive to the development of housing for low income people," said Eddy. The second obstacle is regulation and legislation. In particular, Eddy is underlining the regulation on balanced residential, yet to get certification for low cost houses is still not that easy, plus the inconsistency of the implementation of Law No. 1 of 2011. A third constraint is about the organization. According to Eddy, the management policy on the housing development tends to eliminate the rights to get low-cost houses. Thatâ&#x20AC;&#x2122;s because the housing developments nowadays have favored the building of commercial houses. Next is the political obstacle. Then the ability of low-cost houses to reach the housing market is still low. According to Eddy, this happens because of the increasing house prices is unstoppable, while the purchasing power of the community is not increased. The next obstacle is the unavailability of

48 | THE PRESIDENT MAGAZINE DECEMBER 2014

sufficient funds. And the last, according to Eddy, is human resource constraint. The policies makers governing the public housing seem do not really understand the main problem.

Jakarta Yet To Be Example

Meanwhile, Jakarta as the capital of the country cannot be a role model for other cities in managing town settlement and meeting the needs of its residents. Trade and business activities are higher in Jakarta, demanding the availability of housing for the middle class of employees who work in the capital city. Currently, most of them are commuting back and forth to Jakarta from the buffer areas they choose to stay such as Tangerang, Bekasi, Bogor. The bad traffics that cause them to travel longer time to get office have become a

scourge to them. But the choice becomes more difficult when there is no housing downtown that is affordable for them to buy. The perception of having a home in majority of Indonesian people is the one on the ground (landed house), as most people here are still not accustomed to living in an apartment or vertical residence. Indonesia Property Watch Executive Director Ali Trangahda said, now the middle class is in a 'stuck' position with the availability house supply. Suppose the income is Rp7.5 million per month, they have the capability to pay the installment of Rp2.3 - 3 million per month. With such a figure, it means they can buy a house with the price of Rp300 million. However, currently such a landed house with that price is only available in the areas out of a big city. "The entrapment happens when they are

imposed to purchase the house because they prefer to own a landed house. Apparently they have to spend additional cost for transportation to the workplace," said Ali. What happens then is there are some people to decide to abandon their houses outside the city and rent a boarding house in downtown Jakarta. This condition also makes many developers begin to build a cheap apartment in the buffer zones of Jakarta with the price at Rp200-Rp300 million to grab this market. "However, the thing is that if the transportation system is still like this, then time and operational costs needed will be still a major problem," he added. The glut of lower middle apartments with the prices between Rp200 and 300 million per unit in Bekasi and Serpong must be addressed by the consumers with consideration of time and transportation costs needed. This phenomenon occurs because it has been very difficult to get an apartment like that in Jakarta. Thus, the growth of the apartments in the buffer zones relatively does not resolve the main problem. Ali further said the government should immediately intervene to build vertical housing in urban areas for the middle class segment. This kind of buildings can be categorized as public housing that cannot be left entirely to the private companies. Because learning from 1,000 programs low cost flats to buy (rusunami) once launched by the government has failed due to the price limit set by the government was not obeyed the private developers. On the other hand the developers could not be blamed fully because there were no strict rules on the matter. The price became higher following the market and not affordable to the middle class urban people. Therefore, the government should immediately make a breakthrough for the availability of this middle class residence. Although the city has build low cost flats to rent (rusunawa) on the land surrounding reservoirs, but these are allocated for the people working in the informal sector, while it is the middle class who need more residences that can lead to better work productivity. Looking at the direction of development in Jakarta, whether like it or not, ready or not, the public will be forced to live in vertical housing, either to buy or to rent. Therefore the Jakarta administration should 50 | THE PRESIDENT MAGAZINE DECEMBER 2014

On the economic viewpoint, regarding the level of gross domestic product (GDP) or income per capita as well as capital markets activity. be more involved in the provision of vertical housing. The provision of affordable vertical housing alone is not enough to accommodate all the residents of Jakarta. There are many other issues that must be resolved. Property consultant Knight Frank even mentioned that Jakarta would never be included in the elite ranks of global cities. That could really happen if the local government keeps neglecting its commitment to fix the infrastructure and public facilities, improving the economy, creating the right regulation and effective and efficient bureaucracy which in turn improving the quality of life of its residents. That was the report of the Knight Frank Global Cities Index 2015 presented in Jakarta recently. According to Associate Director of Consultancy and Research Knight Frank Indonesia, Hasan Pamudji, to enter the ranks of global cities, a city must meet several criteria.

"First, on the economic viewpoint, regarding the level of gross domestic product (GDP) or income per capita as well as capital markets activity. Second, the political constellation which can be seen from the number of foreign embassies in the city. Third, the quality of life of its residents who are closely related to the level of education and knowledge, a sense of security, freedom of expression as part of democracy, and comfort of living in the city," said Hasan. Meanwhile, Jakarta is not included in the ranks of the world's 15 elite cities that meet the criteria mentioned above. Jakartaâ&#x20AC;&#x2122;s performance is still standing far below Mumbai in the Global Cities Index 2015 which offers the prospect of investing in a premium office sector with the highest returns of 10.25%. Jakarta is also beaten by Mexico City, Houston, Sydney, Washington, Shanghai, Madrid, Frankfurt, New York, San Francisco, Paris, Tokyo, London, Singapore, and Hong Kong.

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NATIONAL

LOOKING INTO THE POTENTIAL OF STARTUP BUSINESS BY KHAIRISA FERIDA

he creativity of Indonesian startup creators is now very diverse and unique, of which this potential should be able to lift the competitiveness of Indonesian digital businesses. Ministry of Tourism and Creative Economy (Kemenparekraf) even today continues to develop the potential of the various startup businesses. The Kemenparekraf has held Forum Business Connect to bring together the owners of digital startups that have developed around one to three years and then they were given various trainings. The event aimed to improve the opportunities and their ability to promote the startup businesses, both nationally and internationally. Kemenparekraf invited all the entrepreneurs developing digital startups to register in the Forum Business Connect. The public interest turned out to be huge, until finally hundreds of digital startups registered in the forum. This provides a little evidence that a lot of entrepreneurs are now beginning to see the excellent potential of digital startups in Indonesia to develop the creative industries today. Not all of the startup business owners could participate in the Forum Business Connect since from hundreds who registered only 30 were selected. The selected participants were then given the opportunity to follow a 5-day training camp held by Kemenparekraf. In addition to the training, the startup business owners were met with professionals who had already been successful in the digitalpreneur businesses. On the last day of training, each participant had to compete in the Seedstartsworld

52 | THE PRESIDENT MAGAZINE DECEMBER 2014

Business Competition. The Seedstarsworld Business Competition is the culmination of a series of events in the connect business forum held by Kemenparekraf. Huzaifah Gibran, one of the participants of Seedstartsworld Business Competition said that the spirit of entrepreneurship in Indonesia is high, shown by many people who are now competing to create startup businesses. "Unfortunately, we do not have an ideal environment yet, ranging from investment, government support, and the bureaucracy. Hopefully it can be fixed," he said. In general, the purpose of holding the Forum Business Connect by Kemenparekraf is to fix that, so in addition to facilitating the burgeoning startups, it also is directly able to improve the quality of digitalpreneurs in Indonesia. Having the ability and the idea is not enough to develop a startup. In addition, it is also necessary that the ideas are properly executed and having extensive network to make the owners not be difficult to find funding and investors for developing their businesses. Founder of PicMix, who is also CEO and President Director of Inovidea, Calvin Kizana said that Indonesia with a myriad potential owned by its young generation will be able to break the global market, but with a note that there is a real support, which is right on the target, from the government. On many occasions he claimed to find many local startups that have been pretty confident in their products, although some of them prefer to penetrate markets outside Indonesia. "Just look at the number of neighboring countries, how their creative industries are getting the enormous supports. There are South Korea with it Kpop and Japan with its

THE GROWING DIGITAL INDUSTRY IS NOW DEMANDING THAT INDONESIA CONTINUES TO INCREASE INNOVATION IN THE STARTUP BUSINESSE. CURRENTLY THE DEVELOPMENT OF DIGITAL STARTUP BUSINESSES IN INDONESIA IS STILL NOT MAXIMIZED.

Jpop and anime, all is the cultures that they pack in such a way that ultimately worth to be sold in the global markets. With our enormous potential, some local startups even get a job from abroad, which I am afraid that eventually they will move overseas and there will no longer be known as Indonesian companies. Young children should be facilitated even if it needs to be funded," said Calvin. He admitted that the new amazingly inventions in the information technology sector are still coming from Silicon Valley, while most startups in Asia follow suit. But he considered nothing wrong with it. "Innovation does not have to be 100% invention, if there is a difference of 1%, it’s already a pretty good step. “Investors would have a pretty big fear when the idea is 100% brand new, because the market has not been proven. The problem in Indonesia is that they don’t follow the trend but mostly 100% plagiarism. There are quite a number of classical problems experienced by novice startups in Indonesia, they are not thinking about how to make money. “Usually, when asked, they would say from the Google Apps Store, but if the users are not many enough who wants to advertise? So, the first step for startups is they should not be selfish by simply making products according to their wishes, they must survey, should meet the demands of the markets. “A product must be a solution to an issue. Once the product is finished, do not rush to be thrown into the market. It is better to first polished it in such a way. What happens in us just the opposite, once created it’s thrown into the market. In the end skeptical thinking appears that the local products are ugly," said Calvin.

NATIONAL

ATTRACTIVENESS OF ELECTRICITY FOR INVESTMENTS BY ROBERT

The additional production capacity of electricity from new power plants in the fast track program (FTP) Phase I will encourage investments into various regions. To make the power supply very attractive for investment, the new power plants to be built should have a big capacity and in many number. Nine projects of Steam Power Plants (PLTU) with total capacity of 2,093 Mega Watt (MW) have been inaugurated by then Coordinating Minister for Economic Affairs Chairul Tanjung in conjunction with the inauguration of the Banyu Urip Production Facility and other projects of energy and mineral resources on Wednesday (8/10). The event took place at the Banyu Urip Oil Field The power plant projects inaugurated are PLTU Nagan Raya Units 1 and 2 (2 x 110 MW) in Aceh, PLTU Tanjung Balai Karimun (2 x 7 MW) in Riau Islands, PLTU Teluk Sirih (2 x 112 MW) in West Sumatra, PLTU Tarahan Baru #1 (100 MW) in Lampung, PLTU Pelabuhan Ratu (3 x 350 MW) in West Java, PLTU Tanjung Awar-Awar #1 (350 MW) in East Java, PLTU Barru (2 x 50 MW) in South Sulawesi, PLTU Kendari #1 (10 MW) in Southeast Sulawesi and PLTU Mataram #3 (25 MW) in West Nusa Tenggara. In his speech, Chairul said the additional production capacity of electricity from the new power plants in the FTP Phase I will encourage investment into the various regions. "I hope now the electricity will become more attractive for investment. For that purpose, the capacity of the power plants must be big enough and we need a lot of the new electricity generations," he added. The projects, except for the PLTU Mataram, are included in the acceleration program of building 10,000 MW power plants in phase I (fast track program/FTP1) and scattered in various regions.

54 | THE PRESIDENT MAGAZINE DECEMBER 2014

These projects are built in anticipation of the growth in electricity demand, improving the reliability of the supply and reducing the use of fuels (BBM) which is expensive. Until now, the status of the projects of FTP 1 that have been in operation has reached 73% and the rest will be finished soon. The government has also launched the second phase of FTP with a total capacity of 17,918 MW, most of the power plants will use renewable energy fuels. The projects of FTP II will be built by PLN and private sectors in order to anticipate the growth in electricity demand and increase the electrification ratio.

"I hope now the electricity will become more attractive for investment. For that purpose, the capacity of the power plants must be big enough and we need a lot of the new electricity generations." Chairul Tanjung

NINE PLTU PROJECTS IN FTP I PLTU Nagan Raya Units 1 and 2 (2 x 110 MW) in Aceh.

â&#x20AC;&#x153;The main challenge faced by PLN in the future is how to find a way to accelerate the improvement of Indonesia's electrification ratio by providing electricity for at least 3 million new customers per year.â&#x20AC;? ......................................................................

Electricity Infrastructure

eputy Minister of Energy and Mineral Resources (ESDM), Susilo Siswoutomo, opened the Indonesian Electricity Exhibition 2014 at the Jakarta Convention Center, Jakarta, on Wednesday (01/10). With the theme of "Accelerating the Development of Electricity Infrastructure in Supporting National Economic Growth", the opening ceremony of the exhibition was attended by the Director General of Electricity Jarman, Director of PLN Ngurah Adnyana, and Chairman of the Indonesian Electricity Society, Moch. Harry Jaya Pahlawan. The main challenge faced by PLN in the future is how to find a way to accelerate the improvement of Indonesia's electrification ratio by providing electricity for at least 3 million new customers per year. In 2013, the electricity consumption reached 876 kWh per capita and will continue to increase up to 1,300 kWh per capita in 2020. The readiness of infrastructure is needed to support the growth of electricity consumption by 7%-8% and electricity demand by 9% per year, or equivalent to the addition of approximately 5,000 MW of power plants. Until December 2013, Indonesia's electrification ratio reached 81%, a 13% increase in the last three years. The infrastructure development should be parallel with the development of domestic production of goods and services, so that the domestic industry has to be pushed. With a capital expenditure of Rp50 trillion per year, PLN will always keep the principle of "Clean, Professional, Ethical" in carrying out its cooperation with various parties. In the development of electricity infrastructure, all stakeholders are invited to support the efforts of PLN to make all people able to enjoy electricity, which in turn can enhance the progress of the national economy. (Robert)

The power plant is located in the village of Nagan Raya, Suak Puntong, Nagan Raya district. In addition to increasing the supply of electricity in the region of Aceh and North Sumatra, the plant has the potential to save the use of fuels in Nagan Raya about 195,000 kilo liters, equivalent to Rp1.67 trillion per year. .................................................

PLTU Tanjung Balai Karimun (2 x 7 MW) in Riau Islands.

The power plant is located in the district of Tanjung Balai Karimun, Riau Islands. This power plant has the potential to save the fuels consumption about 24,000 kilo liters, equivalent to Rp212 billion per year. .................................................

PLTU Teluk Sirih (2 x 112 MW) in West Sumatra.

The power plant is located in Teluk Sirih Village, Bungus Teluk Kabung District, Padang, West Sumatra. This power plant has the potential to save the use of fuels about 397,000 kilo liters, equivalent to Rp3.4 trillion per year. .................................................

PLTU Tarahan Baru #1 (100 MW) in Lampung.

The power plant is located in Sebalang District, South Lampung Regency. It has the potential to save the fuels consumption around 177,000 kilo liters or equivalent to Rp1.5 trillion per year. .................................................

PLTU Pelabuhan Ratu (3 x 350 MW) in West Java.

The power plant is situated in the village of Jayanti, Palabuhan Ratu District, Sukabumi Regency, West Java. This power plant contributes in the improvement of power supply in the province of West Java and Java-Bali network system in general. .................................................

PLTU Tanjung Awar-Awar #1 (350 MW) in East Java.

The power plant is located in Wadung Village, Jenu District, Tuban Regency, East Java. The plant will contribute in increasing the power supply in East Java and Java-Bali network system in general. .................................................

PLTU Barru (2 x 50 MW) in South Sulawesi.

The power plant is located in Lampoko Village, Balusu District, Barru Regency. In addition to contributing to the improvement of power supply in province of South Sulawesi, the plant covering an area of 40 ha has the potential to save the use of fuels around 177,000 kilo liters or equivalent to Rp1.5 trillion per year. .................................................

PLTU Kendari #1 (10 MW) in the Southeast Sulawesi. The power plant is located in Soropia Village, Soropia District, Konawe Regency. This power plant has the potential to save the fuel consumption of around 17,000 kilo liters, equivalent to Rp151 billion per year. .................................................

PLTU Mataram #3 (25 MW) in West Nusa Tenggara.

The power plant is built Kebun Ayu Jeranjang Village, Gerung District, Lombok regency, West Nusa Tenggara. This power plant has the potential to save the use of fuels about 44,000 kilo liters, equivalent to Rp379 billion per year.

THE PRESIDENT MAGAZINE DECEMBER 2014 | 55

WORKING WORKING CABIN CAB SOFYAN DJALIL SOFYAN DJALIL

Coordinating Human Coordinating Development Human Development

TEDJO EDI TEDJO EDI PURDJIANTOPURDJIANTO

Legal Political, L Coordinanting Political, Coordinanting Security Affairs Minis & Security Affairs&Minister

ANIES BASWEDAN ANIES BASWEDAN

BAMBANG BAMBANG BRODJONEGORO BRODJONEGORO

Culture and Elementary Cultureand and Elementary and Secondary Education Secondary MinisterEducation Minister

Finance Minister Finance Minister

AMRAN SULAIMAN AMRAN SULAIMAN

Agriculture Minister Agriculture Minister

SITI NURBAYA SITI NURBAYA BAKAR BAKAR

Environment and Environment and Forestry Minister Forestry Minister

SALEH HUSINSALEH HUSIN

Industry Minister Industry Minister

THAHJO KUMOLO THAHJO KUMOLO

Home Minister Home Minister

HANIF DHAKIRI HANIF DHAKIRI

YUDDY CHRISNANDI Manpower Minister Manpower MinisterYUDDY CHRISNANDI Administrative andAdministrative and Beraucratic Beraucratic Reform Minister Reform Minister

BASUKI HADIMULJO BASUKI HADIMULJO

Public Works andPublic PublicWorks and Public Housing Minister Housing MinisterRUADIANTARA RUADIANTARA Communications and Communications and Information Minister Information Minister

ANAK AGUNGANAK AGUNG GEDE NGURAH GEDE NGURAH

H. H. DR.YASONNADR.YASONNA

Cooperatives and Cooperatives Small Mediumand Small Medium LAOLY.,SH., M.Sc LAOLY.,SH., M.Sc Enterprises Minister Enterprises Minister Minister Human Right Minister Law and Human Right Law and

, Jakarta Pusat, 10110 8433507

RAHMAT GOBEL RAHMAT GOBEL

Trade Minister Trade Minister

FERRY MUSYIDAN FERRY MUSYIDAN BALDAN BALDAN

Agrarian and Spatial Agrarian and Spatial Planning MinisterPlanning Minister

RYAMIZARD RYACUDU RYAMIZARD RYACUDU

Defence Minister Defence Minister

RETNO LESTARI RETNO LESTARI PRIANSARI MARSUDI PRIANSARI MARSUDI

Foreign Minister Foreign Minister

ET NET ANDRINOF CHANIAGO ANDRINOF CHANIAGO Prof. Dr. PRATIKNO Prof. Dr. PRATIKNO

National Development National Development State Secretary State Secretary Planning MinisterPlanning Minister

RINI M.SOEMARNO RINI M.SOEMARNO

State Owned State Owned Enterprises Minister Enterprises Minister

LUKMAN HAKIM LUKMAN HAKIM SAIFUDDIN SAIFUDDIN

Religious Affairs Minister Religious Affairs Minister

Prof. Dr. dr. NILA Prof. Dr. dr. NILA DJUWITA F. DJUWITA F. SUDIRMAN SAID SUDIRMAN SAIDHealt Minister Healt Minister

Evergy and Mineral Evergy and Mineral Resources MinisterResources Minister

SUSI PUDJIASTUTI SUSI PUDJIASTUTI

Maritime Affairs and Maritime Affairs and Fisheries MinisterFisheries Minister

KHOFIFFAH INDAH KHOFIFFAH INDAH PARAWANSAPARAWANSA

Social Affairs Minister Social Affairs Minister

PUAN MAHARANI PUAN MAHARANI

Coordinating Human Coordinating Human Development and Development and Culture Minister Culture Minister

YOHANNA YAMBISE YOHANNA YAMBISE

Woman Emporment Woman and Emporment and Child Protection Child Protection

INDROYONO INDROYONO SOESILO SOESILO

Coordinating Maritime Coordinating Maritime Affairs Minister Affairs Minister

MARWAN JAFAR MARWAN JAFAR

Villages, Disadvantaged Villages, Disadvantaged Regions andTransmigration Regions andTransmigration Minister Minister ARIEF YAHYAARIEF YAHYA

Tourism Minister Tourism Minister

IMAM NAHRAWI IMAM NAHRAWI

Youth and Sport Minister Youth and Sport Minister MUHAMMAD NASIR MUHAMMAD NASIR

IGNATUS JONAN IGNATUS JONAN

Transportation Minister Transportation Minister

Research and Technology Research and Technology and Higher Education and Higher Education

WORKING CABINET

SUSI PUDJIASTUTI: INDEPENDENT KID FROM RICH FAMILY

hen attending high school in Yogyakarta, Susi was expelled for daring to oppose the New Order in 1982 by her Abstention (No Vote) Movement. Dropped out of school, Susie tried to support herself by selling fish. She got the capital from selling her jewelry for Rp750,000. Susi is a daughter of a rich family but not spoiled, she climbed on the truck by herself when sending her fish to the customers. She was never bothered by the rains and heating sunlight as she believed that she had to change her fate by acting out instead of waiting for destiny to come. On the truck she was safeguarding her fish and becoming accustomed to a hard life in the fishing port, but it is an example of a woman who can turn around her fate. One time when her business started to grow, she saw her packages of lobster and fresh fish quickly rotting due to being too long on the truck going to the Port of Jakarta. She got an idea to transport the fish by an aircraft to shorten the time, and able to send directly to Japan. Susi was applying for a loan to the bank to buy a plane for about Rp47 billion. The people in the Bank were laughing, even a bank official said sarcastically, “If I agree to this proposal, not only you that

60 | THE PRESIDENT MAGAZINE DECEMBER 2014

is dubbed crazy but I will be said crazy too”. But she did not give up and went to a lot of other banks at that time until she could get a bank loan to purchase an aircraft. The person who understood Susi’s vision was Ventje Rahardjo, Director of Commercial Banking of Bank Mandiri in 2004. The Susi’s proposal was included in the valuable feasible project. Having the liquid fund, a Cessna Grand Caravan was purchased, but God had other plans. Susi’s aircraft was used to help Aceh in December 2004 when an earthquake occurred. Upon hearing the news of the earthquake in Aceh, Susi did not remain silent, She broke through here and there so that her plane could go there. Obstacles existed at the airport, but she called then Transport Minister Hatta Rajasa and it was allowed to bring the plane carrying aid. At that time she also brought Rp500 million in cash. Susi’s aircraft was the first to break through Meulaboh and be a reference for a lot of newsmen about the earthquake in Aceh which was not impenetrable by flight. Susi’s courage is not just for herself, but for humanity also. Many are cynical about Susie by saying this and that. But the facts prove that Susi is an example of Indonesian Woman who dares to challenge her fate and change it with her own hands. (Awg)

THE PRESIDENT MAGAZINE DECEMBER 2014 | 61

WORKING CABINET

IGNASIUS JONAN: IMPROVING TRANSPORTATION ON PRIORITY Previously rumored to be the Minister of State Owned Enterprises (SOEs), Ignasius Jonan turned out to be appointed as Minister of Transportation in theWorking Cabinet of Joko Widodo-Jusuf Kalla for the period 2014-2019. Will he make a breakthrough like what he did in reforming the state-owned railway company PT Kereta Api Indonesia (KAI)? BY JOKO HARISMOYO

head of the announcement of the new cabinet of Jokowi, The President Post met Jonan at Cikini Station, Jakarta. He was reluctant to talk about his chances of becoming a minister, although he admitted having met with President Joko Widodo several times. "It is the prerogative of the president. A mandate that should not be pursued," he said. Jonan said there was nothing special about his appointment as a minister. He went straightly to work after the first meeting of Working Cabinet on Monday (27/10). "Nothing special. This is a work not a position," he said. At the announcement of the new cabinet on Sunday (26/10) Jokowi appointed Jonan as Transportation Minister because Jonan, who was born in Singapore, June 21, 1963, has successfully turned PT KAI from a losing company to a profitable enterprise. Thanks to that success, Jonan has the advantage to become the Minister of Transportation. Now, the problem to be faced will be more complex ranging from land transportation, sea transportation and air transportation. He also must be able to transform the vision and mission of Jokowi who wants to build a ‘toll road’ in order to realize the connectivity inter regions over the sea. On the first day of work, Jonan identified problems existing in his ministry. He also asked former transportation minister who is now the Deputy People's Consultative Assembly (MPR) EE Mangindaan. Mangindaan suggested Jonan to stay focused to develop the sea transportation system. "I was the same, the transportation reporters know my programs focused on the sea, so it should be continued," he said. Meanwhile, to get to his office, Jonan refused the motorized police escort facility (Voorijder) provided by the Ministry of Transportation. Voorijder is important to safeguard the state officials and overcome bottleneck traffics in the capital city. However, Jonan refused the Voorijder for embarrassment to the other drivers. He wants to equate his status on the street with the general public.

62 | THE PRESIDENT MAGAZINE DECEMBER 2014

Inventory of Challenges Jonan asked for two weeks to study the working programs to be done. "Two more weeks, yes," he said in Jakarta on Tuesday (28/10). Currently he is still in the stage of inventory of the challenges faced by the ministry. "Only later we will concern about long-term and short-term programs," he explained. Jonan insisted he had discussed with the relevant coordinating minister for the working plan. He also asked the echelon one and two to coordinate in achieving the targets of the Transportation Ministry. "Now there is no vision the minister, there is only the vision of president as chief executive," he added. The priority is now, according to him, is improving the licensing and the transportation systems. "The improvement of the transportation system will be pushed, both for people and for goods." To get the improvement level Jonan would put a realistic target. The parameters of progress, he said, not only there are development activities but it must be made to achieve an obvious target. In addition it is also establishing the coordination between the operators and stakeholders. "We have to be in the same field. Whatever to be done, whether investment, development or anything else, there must be a goal to achieve," he said. He pointed out that the current air transport capacity is 80 million passengers per year. “If in 2019 we are targeting to increase to 120 million, it has to be clear, PT AP (Angkasa Pura) 1 and 2 will do what," said Jonan.

"Nothing special. This is a work not a position."

WORKING CABINET

Rini Soemarno Prioritizes Development on Maritime Sector Ignoring the controversy on his appointment as Minister of State-Owned Enterprises (SOEs), Rini Soemarno immediately launched working programs related to the vision and mission of President JokoWidodo (Jokowi) in the maritime sector.

64 | THE PRESIDENT MAGAZINE DECEMBER 2014

hen announcing her appointment as Minister of SOEs in the Palace courtyard on Sunday (26/10), President Jokowi said, "Professional, rich in experiences at a large enterprise and hard worker, the chairman of the transition team." Rini who has a special affinity with the former president Megawati Sukarnoputri, was once the Minister of Industry and Trade in the Mutual Assistance Cabinet of Megawati era. Jokowi mentioned Rini as someone who was working super fast. However, the appointment of Rini has become controversial. Economic observer Ichsanuddin regarded Rini as one of the candidates who entered the red zone marked by the Corruption Eradication Commission (KPK) and the Center for Financial Transaction Reports and Analysis (PPATK). During her tenure as Minister of Industry and Trade in the Mutual Assistance Cabinet, Rini was allegedly involved in several cases of alleged corruption such as the issuance of Certificate Declaring Paid Off (SKL) of Bank Indonesia Liquidity Assistance (BLBI). Not only that, Rini also been examined by the Working Committee (Panja) of Commission I concerning the counter-trade of Sukhoi fighter jets, helicopters and military equipment with Russia. Allegedly, in the process of the counter-trade Indonesia suffered state losses.

Focusing On Job No matter the controversy, Rini chose to focus on her works to realize the vision and mission of President Jokowi. She plans to prioritize the development of ports in Indonesia. "The first homework is to explore the performances of Pelindo I-IV as well as how to improve them," said Rini in the Ministry of SOEs on Monday, 27 October 2014. Earlier, former Minister of SOEs Dahlan Iskan said there were some programs that could not be realized in his tenure, namely the construction of 500 KV electric transmission and rescuing aviation company PT Merpati Nusantara Airlines (MNA). Regarding the programs that have not been realized yet, Rini asked for some time to study it further. She promised she would continue the programs designed by Dahlan if the programs would develop the state-owned enterprises. "Of course I'm sure Mr. Dahlan Iskan has formulated a lot of programs, I will learn more. The ones which are good, I will continue and those which that are not that good I will make a breakthrough about them," she explained. According to Rini, Jokowi asked the ministers to establish working programs that are based on and support the vision and mission of the head of state. The main point is that the programs of Jokowiâ&#x20AC;&#x2122;s working cabinet are capable to create welfare for the people, creating a equal and fair prosperity, as well as reducing the big gap. To that end, the development activities should be done in all sides. One of Jokowiâ&#x20AC;&#x2122;s programs to make people wealthy is through the Indonesia Healthy Card (KIS) and Indonesia Smart Card (KIP), free healthcare and education programs. Rini said, some of the state-owned companies will be included in the implementation of KIS and KIP. "Indeed, in its application (KIS and KIP) will be participated in by some of the companies, including Bank Mandiri, and Telkomsel," said Rini. (jok) THE PRESIDENT MAGAZINE DECEMBER 2014 | 65

WORKING CABINET

Drama Behind Appointment of Tedjo Edhy Purdijatno On Saturday (25/10) night, Admiral (Ret.) Tedjo Edhy Purdijanto, was about to go to a dentist office.There was no dream to go to the State Palace. However, a call from AndiWidjajanto, former Deputy of Transition Team, obliged him to go there and meet President JokoWidodo (Jokowi).

edjo arrives at the palace at 22.00 pm. He was asked about some issues telated to politics, law, and security. In a brief, only 15 minutes. "So, it was only last night (Saturday night) that I was told by Mas Andi who said ‘tomorrow you’re (appointed as) a minister’," he said after the announcement of cabinet line-up in the backyard of the Presidential Palace on Sunday (26/10). "Former Chief of Naval Staff is apt to oversee the politics, legal affairs, and security," President Jokowi said at the State Palace, Jl Medan Merdeka Utara, Jakarta, on Sunday. Tedjo is a former Chief of Naval Staff in the period of 2008-2009. Previously Tedjo Edhy Purdjianto was mentioned to hold the post of Maritime Affairs Minister, but a few days before the announcement, the name was disappeared. The man, born in Magelang on 20 September 1952, was reportedly not going to become a minister. The position of Menkopolhukam (Coordinating Minister for Politics, Legal Affairs and Sucurity) would initially be occupied by Gen. (Ret) Wiranto. However, some parties objected for a reason that the Hanura’s Chairman has been tainted by the allegation of human rights violation.

66 | THE PRESIDENT MAGAZINE DECEMBER 2014

The issue related to the human rights violation was denied by politician of Hanura, Saleh Husein. According to Saleh, Wiranto was not willing to become a minister and provided the opportunity to the young cadres. "So, he handed (the quota of Hanura) to me as a younger cadre," said Saleh. Since Saleh becomes Minister of Industry, the Menkopulhukam post was given to Tedjo, politician from the Democratic National Party (NasDem). Tedjo is the NasDem’s Chairman of Defense and Security. He graduated from the Naval Academy (AAL) class of 21st in 1975. He joined the NasDem organization when Sultan Hamengkubuwono X left his post as Chairman of the Board of Trustees of the mass organizations. Tedjo attended the Young Officers Course, Armed Forces’ Education and Development, Sus Prostis, Diklapa 2, Seskoal Force 29, Command School of Armed Forces and Lemhanas KRA 34. The father of four children once served as military Chief of General Staff before becoming the Chief of Naval Staff. As Menkopolhukam, Tedjo will pay attention to the issues related to the theft of marine resources and border disputes. "The issue will become the focus, wish me luck," said Tedjo briefly. Tedjo has opened a line for receiving public complaints related to his

duties as Menkopulhukam. "I received a lot of complaints from the public, causing phone hanged," said Tedjo during the farewell ceremony to see off his predecessor Djoko Suyanto at the ministry on Jl Medan Merdeka Barat on Tuesday (28/10). Tedjo said public complaints started to come in after the phone numbers of ministers were distributed via BBM (Blackberry Messenger). Hundreds of messages were sent to his number. "After my number was spread through BBN, so many text messages come in. And that's good," said Tedjo. Related to the working programs, Tedjo added, there is no target within 100 working days. "President Jokowi said the main principal is work, work and work." (jok) THE PRESIDENT MAGAZINE DECEMBER 2014 | 67

ASEAN

JOKOWI’S FOREIGN POLICY AND ASEAN BY DHARMA AGATIA & BANYU PERWITA

ust a month after Jokowi took the oath as a new president of Indonesia, President Jokowi has to attend some important international multilateral meetings (APEC, ASEAN Summit and G20) in his new administration. One of the crucial multilateral meetings is to attend the ASEAN Summit in Myanmar on 12-14 November 2014. One of the new brilliant ideas of President Jokowi is to promote the idea of Indonesia being a “maritime axis” in Southeast Asia. However, for the maritime axis rhetoric to be practical, President Jokowi would need to consider minor and major alterations to Indonesia’s foreign and defence policy. President Jokowi would also need to be aware of Indonesia’s strategic environment and multilateral ties in ASEAN, as the environment is unpredictable and susceptible to change. President Jokowi puts forward five points for Indonesia’s foreign policy i.e. (1) consolidation of Indonesian leadership in ASEAN, (2) strengthening regional architecture to prevent great power hegemony, (3) development of strategic bilateral ties, (4) managing the impacts of regional economic integration and free trade on domestic economy, and (5) “comprehensive maritime cooperation” through the Indian Ocean Rim Association. In short, Jokowi’s “maritime axis” envisions Indonesia’s role as a regional leader, not only in ASEAN but also the Indo-Pacific. 68 | THE PRESIDENT MAGAZINE DECEMBER 2014

THE PRESIDENT MAGAZINE DECEMBER 2014 | 69

Jokowi’s foreign policy outlook emphasizes on Indonesia becoming a strong regional maritime power not only in strength but also in diplomacy. Jokowi’s platform acknowledges the importance of maritime diplomacy in resolving territorial maritime disputes with neighbours, the need to safeguard Indonesia’s maritime domain, and alleviating maritime tensions between great powers in the region. It also emphasizes the importance of the Indo-Pacific region for the implementation of Indonesian foreign policy. Related to ASEAN, Jokowi should consider the upcoming ASEAN Community in 2015 in formulating Indonesia’s foreign and defence policy, specifically the ASEAN PoliticalSecurity Community (APSC). The ASEAN Community, consisting of three pillars (politico-security, economic, and socio-cultural), is expected to be the pinnacle of ASEAN integration. The ASEAN Community aims to build a sense of community amongst ten highly diverse members in the region. As one of the biggest ASEAN members, Indonesia assumes the responsibility for the APSC. The APSC Blueprint envisions ASEAN as a politico-security community with three objectives, namely (1) a rules-based community of shared values and norms, (2) a cohesive, peaceful, stable and resilient region with shared responsibility for comprehensive security, and (3) a dynamic and outward-looking region. Jokowi’s foreign policies must be constructed with these objectives and former ASEAN norms in mind, while still upholding Indonesian national interest firmly. The South China Sea dispute continues to be a potentially disruptive issue within ASEAN. With four ASEAN members as claimants in the dispute and the presence of two major powers in the region, ASEAN cohesion is being tested. The Philippines’ relation with China remains tense and as a result, the Philippines have turned to the U.S. for support. The U.S. is expected to provide increased military assistance to the Philippines in order to face China. Vietnam is actively diversifying its security choices by engaging Russia, the U.S., China, India, and Japan in military diplomacy. Furthermore, ASEAN and China have been unable to reach an agreement on a legally binding Code of Conduct, hindering peaceful resolution in the South China Sea. Aside from multilateral disputes, ASEAN members also have their respective security issues which, if remain unhandled, could 70 | THE PRESIDENT MAGAZINE DECEMBER 2014

affect the stability of the region. Thailand faces a turbulent political situation due to continued rows with anti-government factions despite ongoing peace talks. Sectarian violence in Myanmar has resurfaced, which will severely affect domestic politics, as well as foreign relations and economy. Persecution of minority Muslims has influenced other acts in neighbouring countries, especially in Indonesia, where there have been reports of Rohingya activists seeking out help from radical groups in Indonesia. It is feared that these oppressed minorities might be recruited by a Southeast Asia jihad movement, increasing the probability of a terrorist threat in Southeast Asia. Indonesian foreign policy rests on the sacrosanct principle of “Free and Active” (Bebas Aktif) since independence. By adhering to the Free and Active principle, Indonesia wishes to be “active” in international affairs through peaceful means and multilateralism, while avoiding conflicts with great powers. During the Yudhoyono years, the principle has been expanded into two sub-concepts known as the “dynamic equilibrium” or the “Natalegawa Doctrine”, and the “Zero Enemies, Million Friends” rhetoric coined by former President SBY. On the multilateral level, ASEAN has been an important cornerstone for Indonesian foreign policy and ultimately, the advancement of Indonesian national interest. It is unlikely that these conditions will change in the near future. Indonesia’s foreign policy should remain within the corridors of the Free and Active principles. By those principles, the preferred way to be involved in international affairs is through regional organizations. The two regional organizations which we identify as the most important for advancing Indonesia’s goals are ASEAN, with its sub-organizations,

and IORA (Indian Ocean Rim Association). Apart from multilateral organizations, Indonesia would need to enhance existing bilateral relations, especially with PRC, Australia, South Korea, Japan, US, India and the members of ASEAN. What would be Indonesia’s largest concern in ASEAN is the upcoming ASEAN Community in 2015. In wake of the APSC, Indonesia should be able to assume a larger role as the primus inter pares in ASEAN. Indonesia should focus on the APSC as a medium to strengthen existing ASEAN platforms, such as the ASEAN Regional Forum (ARF), in order to further consolidate the ASEAN regional security architecture. Special attention needs to go to the ARF, considering that the ARF is where Indonesia can engage the great powers in the Asia-Pacific on equal terms. The ARF should be improved to accommodate more than just confidence-building measures and provide a mechanism for actual action to be taken. In sum, the APSC should be considered as Indonesia’s main platform for conducting defence diplomacy between ASEAN members in particular, while the ARF for defence diplomacy with members outside ASEAN. Indonesia has always been the primus inter pares in ASEAN. Thus, an Indonesian role is critical in the development of the APSC. In his policy platform, Jokowi insists on “consolidating Indonesian leadership in ASEAN”. This would mean that Jokowi’s policy goals rest heavily on Indonesia assuming ASEAN’s helm as an important regional organization. With Jokowi’s policies, the APSC will become an even worthwhile target to be pursued, as its goals just so happen to coincide with Jokowi’s plans of increasing Indonesia’s middle power diplomacy. The APSC will provide Indonesia with greater responsibility in the region and will serve as a platform for increased Indonesian multilateral involvement.

THE ASEAN COMMUNITY, CONSISTING OF THREE PILLARS (POLITICO-SECURITY, ECONOMIC, AND SOCIO-CULTURAL), IS EXPECTED TO BE THE PINNACLE OF ASEAN INTEGRATION. THE ASEAN COMMUNITY AIMS TO BUILD A SENSE OF COMMUNITY AMONGST TEN HIGHLY DIVERSE MEMBERS IN THE REGION.

ASEAN

ASEAN ECONOMIC COMMUNITY 2015 TO BE ON THE MOVE

BY ATMONO SURYO

t must be recalled that the Association of Southeast Asian Nations was established 47 years ago; on 8 August 1967 by Indonesia, Thailand, Malaysia, the Philippines and Singapore. Indonesia played a key and decisive role on that historical and strategic occasion. ASEAN’s establishment was at a time when after World War II Asia continued to be in a critical political and economic situation. Southeast Asia was in a way also in the midst of an unstable security environment. There was even the risk at that time that the cold war may get worse. Hence, ASEAN’s origin was primarily for political and security reasons. It will be noted, however, that the Indonesian public of today are not aware of Indonesia’s role in the establishment of ASEAN. But also that for several reasons not much attention is being given on ASEAN matters. Not even on matters of immediate importance such as on the forthcoming ASEAN Economic Community 2015 (AEC 2015). Meanwhile ASEAN has been on the move quietly but prudently. It is the ASEAN-way as they often say. ASEAN’s membership expanded to include Brunei, Cambodia, Laos, Vietnam and Myanmar. Regional cooperation among developing countries also 72 | THE PRESIDENT MAGAZINE DECEMBER 2014

took place in other regions such as in South Asia, Africa and Latin America. But one can say with confidence that the most advanced regional grouping happens in Southeast Asia. With all its shortcomings ASEAN has become a significant geo-political, economic association of 10 countries. Well-respected and esteemed by the entire world community. ASEAN is presently being widely considered as an emerging region which can play a positive role not only in East Asia but also in the area of world economics and politics.

Economy:

In the area of economics ASEAN as a grouping has made immense progress in tune with the progress made in East Asia. China, India and Indonesia are the most advanced countries. According to some ASEAN and IMF statistics (of some 3 years ago) , in terms of GDP ASEAN is taking 5th place in the global economy. After the European Union, USA, China and Japan. But larger than Russia, Canada, India, Australia/New Zealand and South Korea. Within the emerging ASIA: China, India and the ASEAN 10 are considered as the three potential economic forces. With regard to GDP growth, nominal GDP and GDP per capita China is on top, followed by the ASEAN 10 which is at a higher level than India. It was mentioned in a study by the ADB that ASEAN is an important part of what the World Bank Called the East Asia miracle (World bank, 1993)

IN PERCENT 10 China, 8,227 8 ASEAN, 2,311 6

India, 1,825

ANZ, 1,711

USA, 15,685

Russia, 2,022 Pakistan, 232 ROK, 1,156

EU-28, 16,641 Canada, 1,819

Japan, 5,964 -

(2) Source: ASEAN-IMF

ASEAN-10 AT A GLANCE (2012) ASEAN-10

INDIA

CHINA

Real GDP growth: 5.4% (e) Nominal GDP: USD 2.3 tr GDP per capita USD 3,745 Population: 616 m

Real GDP growth: 4.0% (e) Nominal GDP: USD 1.8 tr GDP per capita USD 1,492 Population: 1,223 m

Real GDP growth: 7.8% (e) Nominal GDP: USD 8.3 tr GDP per capita USD 6,076 Population: 1,354 m

THE PRESIDENT MAGAZINE DECEMBER 2014 | 73

As can be seen from the following data Indonesia is by far the largest country in the ASEAN region. In particular in terms of nominal GDP and GDP growth. But with regard to GDP per capita and exports Singapore, Malaysia and Thailand are until today above Indonesia.

THAILAND

CAMBODIA

INDONESIA

MALAYSIA

MYANMAR

Real GDP growth: 6.4% Nominal GDP: USD 366 bn GDP per capita USD 5,678 Population: 64.4 m

Real GDP growth: 6.5% Nominal GDP: USD 14.2 bn GDP per capita USD 934 Population: 15.3 m

Real GDP growth: 6.2% Nominal GDP: USD 878 bn GDP per capita USD 3,592 Population: 244 m

Real GDP growth: 5.6% Nominal GDP: USD 304 bn GDP per capita USD 10,304 Population: 29.5 m

Real GDP growth: 6.3% Nominal GDP: USD 53.1 bn GDP per capita USD 835 Population: 63.7 m

SINGAPORE

BRUNEI

LAO PDR

VIETNAM

PHILIPPINES

Real GDP growth: 1.3% Nominal GDP: USD 277 bn GDP per capita USD 51,162 Population: 5.4 m

Real GDP growth: 1.3% Nominal GDP: USD 16.6 bn GDP per capita USD 41,703 Population: 0.4 m

Real GDP growth: 8.3% Nominal GDP: USD 9.2 bn GDP per capita USD 1,446 Population: 6.4 m

Real GDP growth: 5.0% Nominal GDP: USD 138 bn GDP per capita USD 1,528 Population: 00.4 m

Real GDP growth: 6.6% Nominal GDP: USD 250 bn GDP per capita USD 2,614 Population: 95.8 m

74 | THE PRESIDENT MAGAZINE DECEMBER 2014

ASEAN ECONOMIC COMMUNITY (AEC 2015)

Since the birth of ASEAN in 1967 a long series of strategic steps were taken. They include such strategic measures: such as the initiative for ASEAN integration in 2002, AEC (ASEAN Economic Community) blueprint in 2007, designing the Roadmap for the ASEAN Community in 2009. The framework for equitable Economic Development (Bali concord III) in 2011. Economic Development (Bali concord III) in 2011. It is highly important to note that the ASEAN Economic Community calls for: * The free flow of goods and services * Free flow of investment and capital * Free flow of skilled labor Through the free-flow measures ASEAN aims to transform ASEAN into a highly competitive, single market and production base.

FIGURE 2. EVOLUTION OF ASEAN COOPERATION

ASEAN Preferential Trading Agreement 1967 Birth of ASEAN

1977

ASEAN Framework Agreement of Service (AFAS)

1982

1985

ASEAN Free Trade Area (AFTA)

ASEAN Hanoi Plan Investment of action Agreement (HPA) (AIA)

1987

1988

ASEAN Vision 2020

2002

2003

Bali Concord II Initiative for ASEAN Integration (IAI)

Source: ASEAN Secretariat and ADBI Staff Elaborations.

76 | THE PRESIDENT MAGAZINE DECEMBER 2014

Veintiane Action Programme 2004

Cha-am Hua Hin Declaration on the Roadmap for the ASEAN Community (2009 - 2015)

2007

2008

2009

Entrance Into Force of ASEAN Charter ASEAN Economic Community Blueprint (Acceleration of AEC 2015)

Framework for Equitable Economic Development

ASEAN Comprehensive Investment Agreement (ACIA)

2010

Bali Concord III

2011

ASEAN Trades In Goods Agreement (ATIGA)

Trade:

ASEAN TRADE 2011

Being the largest market Indonesia will surely get the biggest share in the Single Market concept. There is the fear, however, that with the free flow of goods Indonesia will only become a huge consumptive nation. Flooded by goods not only from other Asian countries such as China and Japan but also from the other ASEAN countries. It must be noted, however, that statistics shows that Intra-ASEAN trade is already bigger than ASEAN trade with China, EU-27, Japan, USA or the Republic of Korea. With regard to ASEAN total exports Singapore is on top followed by Thailand, Malaysia, Indonesia, Philippines, Vietnam, Brunei and Myanmar. While in terms of Intra-ASEAN exports Indonesia is again at the 4th place. It is felt strongly that It becomes increasingly urgent that Indonesia should be able to increase its competitive position. And enlarge its exporting capacity. As is known Indonesia’s balance of trade until today has been growing at a rapid pace affecting badly the country’s balance of payments.

Country

Value in Million USD

Intra ASEAN

598,242.24

.........................................................................

ANZ

67,711.14

China

280,405.55

India

68,428.78

Korea, Republic of

124,470.90

Canada

10,771.15

EU-27

234,776.15

Japan

Pakistan Russia

273,347.07 6,767.45

13,967.90

USA

198,785.92

Trade

2,388,592.28

Others

510,918.05

PRELIMENARY OBSERVATIONS:

FIGURE 1.3. TOP 10 INVESTORS IN ASEAN, 2011 (BILLIONS OF DOLLARS)

* There is no doubt that ASEAN has grown quite significantly; it has become an important geo-political economic association of 10 countries; there is the possibility of a further (smaller ) expansion;

30.0

25.0

20.0

* In terms of combined GDP ASEAN is already taking a high place in the regional and global economy; it is predicted that it may become a significant East Asia powerhouse; with Indonesia in the lead;

15.0

10.0

5.0

0.0 ASEAN

Europoian Union (EU)

Japan

China

United States

Hong Kong (China)

Cayman Islands

Republic of Korea

United Arab Taiwan, Emirates Province of China

Source: ASEAN Secretariat, ASEAN FDI database

Investment: The development of Indonesia as a production base would need the large inflow of FDI (foreign direct investment) on top of domestic investment. It is precisely in this area of investment where (within ASEAN) Indonesia is in a very strong position besides

Singapore. Followed by Thailand, Malaysia and Vietnam. The top 10 investors in ASEAN during the year 2011 are 1) ASEAN with more than 25 billion dollars, followed by 2) the European Union and 3) Japan. Investment from China and the USA are smaller.

* To that end it is of considerable importance that the ASEAN Economic Community will succeed. Being one of the key founders of ASEAN Indonesia will have some key responsibility to carry; * It would be of immense assistance if the general public and in particular the business society could actively strengthen Indonesia’s position and role within ASEAN; * ASEAN’s continued growth and strength will automatically also strengthen Indonesia’s economic position in the regional and global economy. (A/S)

THE PRESIDENT MAGAZINE DECEMBER 2014 | 77

ADVERTORIAL

Cikarang Dry Port Won Asia Logistics Centre/Park of the Year Award Cikarang Dry Port managed to prove as an integrated port in Indonesia, ready to support and facilitate activities at Tanjung Priok harbor and to improve the competitiveness towards MEA 2015.

ikarang Dry Port won the award in the Supply Chain Asia Award 2014 in the category of Asia Logistics Centre/Park of the Year Award. Awards night was held in Singapore and attended by hundreds of professionals in the field of supply chain and logistics from across Asia. Since 2002, the Supply Chain Asia regularly holds awards ceremony yearly for the perpetrators of the supply chain and logistics in recognition of performance and achievement. Determination of winners is done through public voting coupled with an assessment by a panel of independent judges. “We are very excited and proud. thanks to the cooperation and support of various parties; government agencies, partner shipping companies, forwarders, manager trucking and freight trains, empty depot and warehouse managers, as well as the hard work of the team Cikarang Dry Port.”said Benny Woenardi, Managing Director of PT Cikarang Inland Port, the administator of Cikarang Dry Port. This award would be the motivation for Cikarang Dry Port Management Team to further improve the facilities and services in order to be better. “With the facilities and services are getting better and recognition from the logistics players, we will make Cikarang Dry 78 | THE PRESIDENT MAGAZINE DECEMBER 2014

Port better to support logistics and supply chain industry in Greater Jakarta in particular and Indonesia in general.” said Benny. Asia’s logistics industry recognition deserved to be pinned to the Cikarang Dry Port which is committed to being the Integrated Port Logistics Facilities. In just 4 years, since it was first built in 2010, the development of Cikarang Dry Port as an alternative port and extension (spokes) of Tanjung Priok Port is quite progressive and promising breakthrough. Intermoda service that combines port services international (export – import) and domestic distribution, base to freight trains, marine and terrestrial (integrated intermoda) Because of the information technology support systems that are connected to other ports in the archipelago and other ports in the region – for example Dry Port Lat Krabang, Thailand– through Port to cleaning program Cikarang Dry Port – 6 days. Information Technology support is also made all forms of export-import transactions recorded properly and transparently. Another fact, if in 2012 there were only 7 customers / shipper, now until October 2014 there 300 more shippers and buyers who move operations from Tanjung Priok to Cikarang Dry Port. “Cikarang Dry Port managed to prove as an integrated port in Indonesia. We are

also ready to support and facilitate the dwelling time in port at Tanjung Priok and providing intermoda connectivity solutions that terigrasi” he said. Increasing the number of port services is of course have an impact on land use capacity in Cikarang Dry Port. Of the total capacity of the capacity of container per year in Cikarang Dry Port reach 400,000-500,000 TEUs, is now used 46% to 52%. With the available land area, Cikarang Dry Port will be able to accommodate container service capacity of up to 2.5 million TEUs per year. Until now, the distribution process conducted by Cikarang Dry Port, not only serves the seaport, but also for domestic shipments as to Bandung and Surabaya, using the train. “With the integrated intermoda facility in Cikarang Dry Port as well as HR and IT support reliable, we are ready to improve the quality of port services, logistics centers, container freight trains, distribution (integrated intermoda) to improve the competitiveness of Indonesian logistics facing MEA 2015.” he concluded.

CDP At A Glance Cikarang Dry Port (CDP) provides Integrated Port and Logistic Facilities and serves as an extension gate of Tanjung Priok Sea Port. It is strategically located in the heart of the largest manufacturing zone of Indonesia along the Bekasi – Cikampek industrial corridor on the east side of Greater Jakarta. Approximately 200 hectares of land are allocated for Cikarang Dry Port, easily accessible via highway and railway system. Cikarang Dry Port is the first and only Integrated Customs Services Zone in Indonesia. The international port code IDJBK connects Cikarang Dry Port to other ports of call around the world through Shipping Lines partners. Designate it as port of origin or port of destination under Multimodal Transport Bill of Lading. Cikarang Dry Port offers one stop service for cargo handling and a logistics solution for international export and import, as well as domestic distribution. Cikarang Dry Port is included as part of several programs by the government of Indonesia, among which: Customs Advance Trade System and Indonesia Logistics Blue Print, which are intended to streamline and increase country competitiveness in term of supply chain and distribution of goods. The SAFE Framework of the World Customs Organization and other international standard compliances shall be applied to enhance international trade and return value to supply chain players both in Indonesia and overseas. Cikarang Dry Port is the suitable place for your supply chain activities – bringing all parties in one place for better coordination and increased productivity. The facilities include the provision of Container Yard (CY), Container Freight Station (CFS) for Import located inside terminal area, just by the Container Yard. It is designed for effective and efficient handling process of LCL (Less than Container Load) cargo. Next is Physical Inspection. The facility is prepared for Red Line cargo inspection under Customs supervision, and also Quarantine inspection if required. Joint inspection could be arranged for cargos needing both Customs and Quarantine inspections to save time and cost. The Supporting Terminal comprises Empty Container Depot for storage, handling, cleaning and repair the ex-import containers to be ready for export cargo pick ups; Trucking Depot for smoother movement of goods between Cikarang Dry Port and Tanjung Priok Sea Port; and Railway Emplacement connecting it to Tanjung Priok and eastern parts of Java as well. The 130 hectares of Logistics Park is located strategically with accessibility of direct highway and railway systems, a suitable place to support your logistic activities, consisting of General Warehouse, Bonded Warehouse, and Business Center. THE PRESIDENT MAGAZINE DECEMBER 2014 | 79

KENDAL INDUSTRIAL PARK, CENTRAL JAVA’S INDUSTRY DEVELOPMENT CENTER THE PRESIDENT MAGAZINE DECEMBER 2014 | 83

REGIONAL

To build and manage the KIP, PT Jababeka Tbk. cooperates with the Singaporean state-owned estate management company Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Sembawang Development Ltd. Under the agreement, the two companies have formed a joint venture of PT Kawasan Industri Kendal as the estate management company for KIP. PT Jababeka Tbk. holds 51% of the stake and Sembcorp Development Indonesia Pte. Ltd. 49%. To learn more about KIP, Jababeka Magazine editorial team has interviewed Susana Wijaya as the Unit General Manager of PT Kawasan Industri Jababeka Tbk. at her office in Hollywood Plaza, Kota Jababeka, Cikarang. According to Susana, Kendal was chosen with consideration that the price of the land is

still relatively cheap, while the wages of the workers are also lower than Jakarta and other areas in Central Java. "We want to provide a cheaper alternative industrial area for investors, but still has excellent supporting facilities. Kendal also has the gas pipeline network, close to the major port, railway and international airport in Semarang. This area has been designated as a Special Economic Zone (SEZ)." KIP started to be built two years ago on an area of 2,700 hectares. "We decided to build this area after conducting field researches to see the prospects of Kendal as an industrial area." Susana added KIP is set to be built as an industrial area refers to the Jababeka Industrial Estate, Cikarang, complete with supporting facilities such as clean water and

"This year's development program will focus on Kendal.That is why more than half of the capital expenditure allocated for developing the area." -Muljadi Suganda, Corporate Secretary of PT Jababeka Tbk

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wastewater management, power generation, as well as the provision of residential and commercial areas. "In the end it will become an integrated and self-contained city with hospitals, schools and other amenities for social activities and lifestyle." A number of initial infrastructures, such as roads and others, have been and are being built. According to Muljadi Suganda, Corporate Secretary of PT Jababeka Tbk., for the year of 2014 the company has allocated Rp500 billion for the development of KIP. "This year's development program will focus on Kendal. That is why more than half of the capital expenditure allocated for developing the area," said Muljadi, adding that the total capital expenditure in 2014 is Rp961 billion. The KIP continues to be promoted actively, inside the country as well as abroad. In early April 2014, the KIP management personnel, accompanied by representatives of BKPMD (Local Investment Coordinating Board) of Central Java and BKPM (Indonesia Investment Coordinating Board), delivered a presentation of â&#x20AC;&#x153;Investment Promotion 2014â&#x20AC;? in Tokyo. Susana said that up to now there are 10 multinational companies who have committed to invest by build their new factory in the KIP. "They run a business in the field of textiles, food, and heavy industry." Regarding the role of local government, Susana said that the district administration of Kendal was very enthusiastic and cooperative in welcoming and supporting the KIP. The provision of One Stop Service for the investors who want to run their business in the KIP, is one form of their supports, she added. "KIP is expected to be a means for the equitable development. There are many people from Central Java who are currently working in the Greater Jakarta area (Jabodetabek). When the manufacturers in KIP start their operations, they most likely will want to return to promote their hometown," said Susana. The KIP development is one manifestation of the vision of PT Jabebeka Tbk. to build 100 new cities in Indonesia, which include the industrial and tourism estates aiming to create equitable development, and creating jobs for a better life. (her)

REGIONAL

PATA Develops Cirebon As Role Model Pacific Asia Travel Association (PATA) Indonesia Chapter continues to strive in developing the tourist destinations in various regions across Indonesia. Currently the non-profit organization, with members of tourism industry players, is focusing to make Cirebon as a pilot project in developing it as an attractive tourist destination, especially for the foreign tourists.

n an interview with The President Magazine, Chief Executive Officer (CEO) of PATA Indonesia Chapter Purnomo Siswoprasetjo said that Cirebon was chosen because it meets a number of criteria to become an international tourist destination. "Actually a lot of local governments have asked PATA to help develop their tourist destinations, such as Medan, NTT, Solo, Bengkulu, Belitung and Palu. We need time to select which one is ready to be developed first," he added. In developing a tourism destination, he further said, the infrastructure, services, human resources, and all the stakeholders must be prepared. Currently most of the tourist destinations require a lot of improvement, especially in terms of the readiness of the communities and the infrastructure. "The PATA will only can help promote the tourist destinations in question when they are already in set. We cannot let down the tourists and the networks which help bring them to come over. The improvements needed generally in the form of additions or repairing the infrastructure, also strengthening the human resources and stakeholders."

Interview with Chairman PATA, Purnomo Siswoprasetjo

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Purnomo said when the tourist destinations ready, PATA will help promote in continuous and intensive programs through its networks both inside and outside the country. For example, this month of May PATA meets buyers from China's in Bali, also promoting Cirebon in Korea. In December 2013 PATA Indonesia Chapter has signed a cooperation agreement to develop tourist destinations in Cirebon. The uniqueness of the Keraton Kasepuhan (Royal Palaca) in Cirebon, its strong cultural heritages, the long history and how good the communities guard and maintain the historical evidences, has make this town worth visiting. "To be more interesting, PATA in collaboration with the local stakeholders has put together a program of events organized for this year. The one has been done is a fun bike called 'Tour de Keraton (Palace)'. While the Cirebon traditional mask dance drama will be staged in September," said Purnomo. Another region now being assisted by PATA for tourist destination development is Palu. According to Purnomo, currently PATA and the tourism players in the city are preparing an area in Sigi regency, 46 km from the city of Palu, to become the best location in the observation of the solar eclipse in 2016. As a result, the hotel rooms nearby have begun to be booked. Another way to encourage the development of the regional tourist destinations is by rewarding an award for best tourism site according to certain category. Such rewards will make it easier to promote and market the sites. PATA Indonesia Chapter is part of the international PATA based in Bangkok, Thailand, with members from over 40 countries. By becoming a member of PATA Indonesia Chapter, will automatically connect to the network of international PATA. PATA Indonesia is carrying out routine activities such as event of gathering for the members in a hope there will be emerging business opportunities. It also organizes seminars with speakers from inside and outside the country for education and information on tourism. "At the end, these activities are expected to increase revenues from the tourism sector and the economic growth in general. Thatâ&#x20AC;&#x2122;s because tourists who come to visit often not only want to have sightseeing but also see the potential, which later can invest their money here," said Purnomo. He added that the international PATA itself has seen much potential in Indonesiaâ&#x20AC;&#x2122;s tourism. Unfortunately, as the other sectors in Indonesia also produce income, the tourism has yet to become the focus of development. "There are still a lot of local governments whose vision is not on tourism, thus they put wrong persons to handle tourism or the budget is too small so that the persons in charge cannot do much. In fact, if it is handled properly, the tourism sector can be a tremendous source for generating foreign exchange revenue," said Purnomo. (ing) 88 | THE PRESIDENT MAGAZINE DECEMBER 2014

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TANJUNG LESUNG TOWARDS INTERNATIONAL TRAVEL DESTINATION

T Banten West Java Tourism Development (BWJ), a subsidiary of PT Jababeka Tbk. continues to work on Tanjung Lesung to make it an international tourist destination. Various development programs are being and will be done in the area of 1,500 hectares, designated as the Special Economic Zone. Tanjung Lesung relies on the 15-kilometer beaches for the tourist attraction with the facilities for basking in the morning sun, swimming pool on the beach and a variety of fun activities such as banana boating, snorkeling, jet skiing, diving and fishing. There are also available the tour packages to Ujung Kulon (conservation forest for Javanese rhinos) and Mount Anak Krakatau. Enjoying the spectacular view of the sunset is the main 90 | THE PRESIDENT MAGAZINE DECEMBER 2014

tourist attraction in this site. Currently for the convenience of the tourists visiting the Tanjung Lesung, the facilities of 4-star lodging are available in the form of 150 bungalows with a total number of rooms 300. There are Tanjung Lesung Beach Hotel, Kalicaa Villa Estate, The Blue Fish, The Sailing Club and Green Coral Exclusive Camping. BWJ recently launched the product of Beranda Vila exclusively built for 41 units only, with a choice of two-bedroom type (158/345) or three-bedroom type (209/420). The selling price ranges from Rp2,1 to Rp2,9 billion per unit. "This latest property product is very suitable for the end users and investors," said Philip Lim, Chief Executive Officer of BWJ.

He added that the villas are designed with luxurious features for outdoor activities combined with the feel of tropical nature. That is because the villas are equipped with a private swimming pool adorned with natural stone ornaments and an open kitchen and a veranda with space more spacious and comfortable. For investors, said Philip, Beranda Vila offers profitable investment certainty of guaranteed rental income and profit sharing. "This is evidenced by the occupancy rate at the Tanjung Lesung which is always up to 100% on weekends," he added. BWJ recently established a cooperation with the investors from China Hanking Industrial Group Co., Ltd. to build facilities such as a golf course and a marina for yachts, an exhibition center, and 4 hotels with a capacity of 100 rooms each. In addition, BWJ has also been committed to build the Airstrip which will accommodate charter flights with the route of Halim Perdana Kusuma â&#x20AC;&#x201C; Tanjung Lesung. Meanwhile, the government plans to build a 85-kilometer toll road from Serang to Panimbang, an airport in the South Banten and Sunda Strait Bridge connecting Java and Sumatra, making value-added of the investments in Tanjung Lesung will continue to rise in the future. For employees who work in Tanjung Lesung and surrounding communities, BWJ is currently building residential houses at Taman Cikadu with the first phase of type 36/72 at a price of Rp88 million. In addition to the hotels and villas in the beach area, the local people also provide homestay for those who want a cheaper place to stay.

Enjoying Tanjung Lesung Beach As the coast of Tanjung Lesung is facing west, the sunset becomes a very charming attraction. However the sunrise can still be enjoyed even just a tinge of yellow and orange on the horizon. If you want to spend one night only, you better leave early in the morning from Jakarta. It takes about 4 hours if there is no congestion and via Pandeglang Regency, another alternative route is through Anyer beach which gives more beautiful sceneries along the way but the travel time is much longer. By leaving early, when you arrive in Tanjung Lesung, you will still have time to do an array of water sports such as banana boat, jet ski, swimming, snorkeling and others while waiting for the sunset, or just pamper yourself with the spa. Snorkeling and diving will take you to the breathtaking underwater world of Tanjung Lesung with a variety of colorful fish complete with coral reefs. If you do not want to bother preparing what to do, you can contact the Tanjung Lesung Beach Club or travel agents that offer a variety of attractive tour packages. Ranging from outdoor activities, barbeque on the beach, interacting with native Banten Baduy tribe and visit Mount Anak Krakatau and rhinoceros conservation forest of Ujung Kulon. For souvenirs, unfortunately the store is still relatively small and what being offered there are relatively standard such as T-shirts, key chains, small wooden rhino sculpture, and crafts typical of Baduy. Meanwhile, local food such as milkfish satay, baked banana (sale), belinjo chips and other snacks can be found in street vendors along the way, especially in Serang, even available also in Cikupa highway rest area.

DOCK FOR CRUISE SHIPS

PT Jababeka Tbk. has established a cooperation with PT Pelabuhan Indonesia II (Pelindo II) to build a cruise terminal and a yacht marina in Tanjung Lesung. The memorandum of understanding between Pelindo II and PT Jababeka Tbk. was signed by the President Director of PT Jababeka Tbk. SD Darmono and President Director of Pelindo II RJ Lino in the Pelindo II office in Tanjung Priok on Tuesday, 2 September 2014. In his speech, SD Darmono said the cooperation is the first step and synergy in developing the tourism area. "The vision of Jababeka for Tanjung Lesung is to develop it becoming an international tourism destination with the toruists who like to travel by yachts," he added. According to Darmono, Tanjung Lesung will include five-star hotels and hundreds of villas, as well as a shopping center while adding some other accesses to the Tanjung Lesung. Currently the only access to Tanjung Lasung is still the 180 kilometers of roads from Jakarta. Darmono futher said that the marina will

be able to accommodate 600 boats: the capacities of 300 ships will be allocated for the owners of the villas in Tanjung Lesung and the other 300 ships for the public use. He said that he expected the cooperation with Pelindo II would trigger other cooperation for developing the access to the Tanjung Lesung. "I hope that the other parties will be encouraged immediately develop and finish the other accesses, such as the airport and the toll road." Meanwhile, Managing Director of Pelindo II RJ Lino said he strongly supported the Jababekaâ&#x20AC;&#x2122;s plan. "This collaboration is an effort to develop a mode of transportation using the cruise line in Indonesia," he said. To implement the partnership, the both sides agreed to form a joint team in designing the aspects of financing, the operation, technical matters, commercial, and others. Tanjung Lesung is a tourism special economic zone established by the government through the Government Regulation No. 26 issued in 2012. THE PRESIDENT MAGAZINE DECEMBER 2014 | 91

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PALU, A PIECE OF PARADISE ON THE EQUATOR Located between the valley and the bay, Palu offers stunning landscapes. All needed to describe the beauty of this city, dubbed as "the city of five dimensions", is there, namely the mountain, the bay, the ocean, the valley, and the river. BY KHAIRISA FERIDA

There is no reason not to visit the Palu City. The statement may be appropriately raised, accompanied by a question, what is not owned by the city with the nickname of a piece of paradise? Nothing. The city has an area of 395.06 kmÂ˛, spoiling everyone who visit it. Being anywhere in Palu City, you will be treated with views like a majestic painting of nature. Just look how stout the Mount Gawalise, visible from all corners of the city. The mountain, located in the western part of Palu City is frequented by hikers who want to spend time at the weekend, given the distance very close to the downtown. The mountain is inhabited by tribes Kaili Da'a , presenting exotic scenery of Palu Valley. Besides, of course, we can enjoy the whole scenery of Palu City underneath. The landscape of Palu City, philosophically interpreted in the distribution of the traditional house of Kaili tribe, called Sou King, consists of three parts namely Gandaria (front porch), Tatangana (middle room), and Poavua (back room). The coastal area is defined as the front porch, the urban residential areas as the central part of the room, and a conservation area or green belt is placed on the back as the back room. The spatial concept is respected direly. It can be seen from the management of coastal area where no one is allowed to erect a building on it to keep its natural eloquence. Palu gives you a wide selection of charming, whether general tourism, religious tourism, cultural and historical tourism, sports tourism, or even culinary. Enjoying an evening walk along the Talise Beach certainly should not be missed. The beach that stretches parallel from Raja Molli Street to Cut Mutia Street, is one of the tourism icons of Palu. Toward the sundown, Talise Beach presents a view of the sun going down slowly behind Mount Gawalise. A number of special snacks of Palu such as fried bananas, gepe bananas, corn, and sarabba can accompany you enjoying the evening at Talise Beach. Itâ&#x20AC;&#x2122;s complete if coming to Palu City does not visit the Palu Bridge 4. Extended over the estuary in the Palu Bay area, the 92 | THE PRESIDENT MAGAZINE DECEMBER 2014

Palu Bridge 4 is connecting Subdistricts of East Palu and West Palu. The bridge, which was inaugurated in May 2006 is the first arch bridge built in Indonesia. In the world, the bridge, dominated by yellow color and the shape of the letter "M", is listed as the third arch bridge after the ones in Japan and in France, with a length of about 300 meters. Not far from Palu Bridge 4, there is a garden that is not only beautiful, but also neat and clean. When you want to travel to the religious tourism sites, Palu has Sis Al Jufrie. This area is located on Sis Al Jufrie Street, Boyaoge Village, Tatanga District and Kamonji Village, West Palu District. The main religious attraction

in this area is located in front of Palu Plaza, named Alkhairaat Foundation Center. The foundation is the largest Islamic organization in eastern Indonesia. In this place there is also the tomb of the founder Alkhairaat, Sayyid Idrus bin Salim Al Jufrie (Sis Al Jufrie) or also known as the Old Guru. Moreover, in this area there are also Alkhairaat Mosque, Nurul Khairaat Mosque, Sa'adah Nur Mosque, and a number of schools. Since the year 2013, the Local Government of Palu has committed to organizing Raudhah Festival. This annual festival is part of the commemoration of the day Old Guru died. Arkam Babu Rahman Mosque or

better known as Floating Mosque is also one of the must visited destinations in Palu. Located 30 meters offshore the Palu Bay, this mosque has an area of 121 square meters and can accommodate more than 150 Muslims. The mosque stands on more than 25 poles. The pillars can be seen clearly during the ebb. However, during the tide, the mosque looks as if floating on the sea surface. There is also the Tomb of Dato Karamah located in Kampung Lere. Dato Karamah is believed to be the first person who introduced Islam in Central Sulawesi. Dato Karamah, whose real name is Abdullah Raqie, is Islamic religious leader from Minangkabau. Dato Karamah successfully converted the King I Pue Njidi to Islam. Since he was considered to have supernatural powers, until now many people

make pilgrimages to the Tomb of Dato Karamah. Another attraction offered by the Palu City is Central Sulawesi Museum. The collection of the Central Sulawesi Museum currently IS numbering 7457 pieces. The collection in the museum can be classified into 10 types, namely Geologika (geology), Biologika (biology), Etnografika (ethnology), Historika (history), Numismatika (numerology and mathematics), Fisologika (physics), Keramologika (ceramics), Arts, Teknologika (technology), and Arkeologika (archeology). The ethnology stuff dominated the collection, including Life Cycle Ceremony collection, Processing Sago, and the Making of Bark Cloth. Standing majestically on the hill of Tondo

Village, Mantikulore District, is Peace Monument, built on an area of approximately 800 mÂ˛. The Peace Monument has a distinctive appellation, Nosarara Nosabatutu which means "Together We're One". Nosarara Nobatutu is the local wisdom concept of the land of Kaili (Central Sulawesi) which becomes one of the foundations in living the life by the local people. Next to the monument, there is Peace Gong Archipelago which has a diameter of 2 meters and weighing 180 kilograms. The Peace Gong is grafted many symbols, including religious symbols, flags, and the symbols of local governments. Although not yet fully managed in maximum way, the tourism sector in the Palu City continues to be developed. In effect, the tourist arrivals has begun to increase. THE PRESIDENT MAGAZINE DECEMBER 2014 | 93

Hunting Typical Culinary of Palu

isiting a tourist destination without tasting the local culinary will not be complete. Especially if you come to Palu City which has a motto of Maliu Ntinuvu. Try a number of unique culinary like Kaledo, Uta Dada, Uta Kelor, Palumara, Palu typical Yellow Rice, Banana gepe, or even traditional cuisine of Kaili community. One of famous restaurants serving Kaledo is Kaledo Abadi, located on Diponegoro Street No. 75. This dish is delicious as a lunch menu. Fresh broth, savory, and slightly spicy combined with tender meat make anyone addicted. Kaledo which stands for Donggala bull's legs can be enjoyed with a plate of warm rice or boiled potatoes. Many are still unfamiliar when they hear the name Uta Dada. In

fact, Uta Dada is a typical food of Central Sulawesi. Uta Dada is a type of dish comprising chicken and coconut milk as the main ingredients. The look of Uta Dada is similar to chicken curry, only that its coconut milk broth is more tasty and a little bit spicy. This cuisine is generally eaten with rice or ketupat. The favored Uta Dada restaurant is RM Ketupat / Uta Dada Puncak Padanjese in Donggala Kodi Village. Not only enjoy the special dish of Uta Dada, but from the top of the hill, we can also see the stunning views of the Palu City at night. Want to eat typical dish of Palu which is much more traditional? You can go to Restaurant of Kaili on Tembang Street. Here are available various menus such as Palumara, Uta Kelo, corn cakes, corn rice, and various types of fish. The restaurant is crowded with patrons at the lunchtime. Its simple structure does not make this restaurant lost its appeal, given the taste of the cuisine served in each menu is authentic. When is the best time to visit the Palu City? Perhaps in October when the Palu Bay Festival is organized as an annual event to celebrate the anniversary of Palu City and to promote the tourism site of Palu Bay.

BEKASI POWER PHOTOGRAPHER: AGUNG WIBOWO

MAKE UP & HAIR DO: NANCY ISHADHINI MODEL: EVELINE PUSPITA

WARDROBE: AGUNG WIBOWO & EVELINE PUSPITA

FASHION SPREAD BEKASI POWER

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FASHION SPREAD BEKASI POWER

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FASHION SPREAD BEKASI POWER

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NEWS & EVENT

Holcim Award 2014 Holcim Foundation held the awarding night of 4th Cycle Holcim Awards' winners for Asia Pacific region, in Jakarta. The competition is global and organized in five regions, which are Europe, North America, Latin America, Africa and the Middle East, and Asia Pacific. From 1,000 proposals that follow this competition, 13 project proposals was selected to be the winners and three of them are from Indonesia.

1. Presentation of the Holcim Awards Silver 2014 for "Childrenâ&#x20AC;&#x2122;s Ziggurat: Locally-adapted orphanage and library, Kathmandu, Nepal": Christopher Gish, Director at Seeds of Change Foundation, Colorado, accepting the award on behalf of Hilary Sample and Michael Meredith of MOS architects, New York. 2. Presentation of the Holcim Awards Gold 2014 for "Protective Wing: Bird sanctuary, Chiang Mai, Thailand" left to right : Winners Nattapong Chumkesorn, Chak Cherdsatirkul, Singh Intrachooto, Jariyawadee Lekawatana, Felix Baroux, Pacharapan Ratananakorn, and Sorawut Kittibanthorn. 3. Presentation of the Holcim Awards Bronze 2014 for "Post-War Collective: Community library and social recuperation, Ambepussa, Sri Lanka" Left to right : winners Ganga Ratnayake and Milinda Pathiraja of Robust Architecture Workshop 4. Presentation of the Holcim Awards "Next Generation" 3rd prize 2014 for "Social Design: Urban neighborhood remediation, Bandung, Indonesia" Left to right: winners Antonius Richard Rusli, Steve Soesanto, Kenneth Soewarto, and Raynoldo Theodore, together with Gary SchĂźtz, CEO Holcim Indonesia 5. Master of Ceremony: Susan Bachtiar, TV presenter

NEWS & EVENT

Jababeka Ofﬁcially Operates Senior Living @D'Khayangan

Senior Living @D'Khayangan, located in Kota Jababeka, Cikarang, Bekasi, has been officially opened. The premium residence special for the elderly and retirees is offered in the form of apartments and villas with the fares of Rp1.8 billion and Rp 2.6 billion per unit respectively. BY ARYA MANDALA

PT Kawasan Industri Jababeka Tbk (Jababeka) once again makes a breakthrough in the property industry in Indonesia. Together with the business partner from Japan, Long Life Holding co. Ltd., the company develops a new residential concept named Senior Living @D'Khayangan. This is the first premium residential project in Indonesia in the form of apartments and villas specifically designed for the elderly and retirees regardless of their nationality. The target market is the workers or pensioners aged 60 and older who work in Cikarang, Bekasi, and want to live their life comfortably and quietly until the end of their lives. In addition, the executives who want a comfortable stay close to their elderly parents are also welcomed. The operation of Senior Living @D'Khayangan officially was began on 25 September 2014. In the first phase of the project, PT Jababeka Longlife City [a joint venture between Jababeka (66%) and Long Life (34%), specifically formed as a Senior Living developer] has built 40 unit apartments with the space of 35 square meters (m²) per unit and four units of villa with the space of 72 m² per villa. The phase I development takes up an area of 3.5 hectares (ha). To occupy the residence, the retirees can choose an apartment at the cost of Rp1.8 billion per person, or villa at the cost of Rp2.4 billion per person. The fee is paid only once and the elderly or pensioners are able to reside until they die. The fee also includes food and lifetime

110 | THE PRESIDENT MAGAZINE DECEMBER 2014

services. In addition, seniors can get the healthcare and treatments from the management of Senior Living. However there will be additional fees have to be paid. President Jababeka Industrial Estate, Setyono Djuandi Darmono said the residential concept also offers profitable potential on the business side. "Senior Living residence for the elderly is expected to provide facilities and services more than expected, so that the elderly can enjoy a healthier life, fun and in dignity," he said. The residential complex is also equipped with various facilities, including restaurants, consulting rooms, therapy, dancing room, salons, spas, as well as karaoke. In addition, the Senior Living @D'Khayangan also provides seniors college, the facility for the elderly to nurture creativity, such as painting and crafting. "Here also available senior botanic garden for planting fruit, flowers, and herbs," said Darmono. With a series of excellent facilities, the Director of PT Jababeka Longlife City, Marlin Marpaung expects the target occupancy of up to 40 people can be achieved by the end of 2014. While the target contribution of earning from Senior Living to Jababeka at the end of 2014 will reach Rp20 billion. Marlin said the company will develop the Senior Living up to as many as 300 apartments and 100 units of villas on an area of 8 hectares. The project costs a total of Rp850 billion. Therefore after the first phase is completed and occupied, the company will build the second phase in 2015.

NEWS & EVENT

Siraishi: Enhance Good Relations Between Indonesia And Japan Companies

The harmonious relationship between the Japanese and Indonesian companies, which is already well established, needs to be enhanced in order to create mutually beneficial synergy. This statement was said by Chairman of Japanese Small Medium Enterprises (SMEJ) Siraishi over a dinner between executives of Japanese and Indonesian companies in Jakarta, on Thursday (06/11). "The relationship between Indonesian and Japanese companies is very good if compared to China and Korea. With a good climate, this

relationship is expected to be better," said Siraishi, an expert in small and medium enterprises (SMEs) from Japan. The meeting was attended by 20 representatives of a number of companies. Every representative was given an opportunity to introduce themselves and the companies they represent. On the occasion, Chairman of Indonesian Employers Association (Apindo) Bekasi chapter, Sutomo, explained about the regional minimum wage (UMR) of Bekasi regency, West Java. The event was closed with a dinner in Japanese style (enkai). SMEJ was founded in 1998 when Indonesia was hit by monetary crisis. At that time, many Japanese companies returned to their home country. To establish communication between the Japanese companies still operating in Indonesia, it was established the Japanese Small Medium Enterprise (SMEJ). The organization, turning 15 years now, is in charge of making better business conditions. It regularly organizes activities, such as a monthly meeting functioning as the business information center and a golf competition to strengthen friendship. (*) THE PRESIDENT MAGAZINE DECEMBER 2014 | 111

NEWS & EVENT

Bike Racing in Tanjung Lesung Runs Successfully Bike Racing event called Bike Park Monthly Race "Four Cross", which took place on 27 to 28 September 2014 in Tanjung Lesung Resort, Pandeglang, Banten, went successfully. Organized by Tanjung Lasung Resort in collaboration with Tanjung Lesung Bike Park and Bluefish Hotel, the race comprised two categories of Four Cross and Pumping. Four Cross is the kind of MTB (mountain bike) race with four participants in every session similar to the motocross competition. They are competing to become the best while racing to the finish line. Once miscalculation, a cyclist had to step out of the competition due to the steep track while the contours of the land are difficult to negotiate, making this category a very challenging for the participants. In the meantime the category of Pumping Bike is a cycling technique with the main strength on the hands to pump in order to make the bike going even speeding on the track specifically designed for pumping bike without having to pedaling it. The aim of Tanjung Lesung Resort in organizing this event is as the actualization of the resort's commitment in always supporting the sports activities that are interacting directly with nature, just like this bike racing. Tanjung Lesung Bike Park has four types of tracks for 112 | THE PRESIDENT MAGAZINE DECEMBER 2014

cycling namely Four Cross, Pumping Track, Mini Downhill and XC Track on the hills surrounding the inside area of Tanjung Lesung Resort. In the race this time, the Four Cross category was divided into four classes: Junior, Men Open, Masters and Elite. While Pumping Bike had ITT (Individual Time Trial). The bikers

compete for cash prizes, certificates and product sponsors. This event was sponsored by Tanjung Lesung Resort, Bagus Bike BSD Serpong, SXtrude Jersey, Cherokee Adventure, Race Cube, and Blue Fish Hotel who provide cash prizes, vouchers and merchandises to the winners of each class. (jok)

NEWS & EVENT

Tanjung Lesung Fun Triathlon 2014: Doing Sports While Traveling Tanjung Lesung Fun Triathlon 2014 became one of the means to promote tourism in Banten through sporting activities. In this event, the participants can enjoy the beautiful beaches and natural scenery in Tanjung Lesung, Pandeglang, Banten. "We want to help KONI Banten to promote the sports in the province. In addition, we also want to promote tourism in Tanjung Lesung and its surrounding areas," said General Manager of Tanjung Lesung Resort, Priyono Indrayanto, on the sidelines of the triathlon held in Tanjung Lesung on Sunday (02/11). According to Priyono, PT. Banten West Java as the managing company of the tourist area of Tanjung Lesung wants to develop sports in Banten as well as promote the tourism so that both can be synergized.

"The triathlon started at the Beach Club. So the participants can enjoy the beautiful beaches, traditional housing residences, and finished at Tanjung Lesung Resort. They were exercising, competing while enjoying the natural beauty here," said Priyono. Tanjung Lesung Fun Triathlon was organized in three phases, namely swimming in the sea for 250 meters, running for 3 kilometers, and biking for 6 kilometers. This event was held by PT Banten West Java, a subsidiary of PT. Jababeka. The winner of Tanjung Lesung Fun Triathlon 2014 is Sajap. Second rank is won by Abidin, followed by Agusnawan as third winner. While the fourth and fifth positions are grabbed by Nova Orza and Jaesa Walbar. (jok)

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NEWS & EVENT

First Novotel Hotel in Tangerang OfďŹ cially Open The largest international hotel operator in the Asia Pacific and Indonesia, Accor, on Wednesday (15/10) inaugurated the opening of Novotel Tangerang, the first Novotel hotel ever in Banten. Located at the top of Tangcity Mall in Tangcity Superblock area, Novotel Tangerang becomes a favorite accommodation of choice for both domestic and international hotel guests visiting Tangerang. "We are excited to introduce the Novotel Tangerang, which is the 85th hotel operated by Accor in Indonesia. As the first Novotel hotel in Tangerang, this hotel puts the best elements of Novotel brand in terms of quality, modernity and comfort. With the economic growth of Tangerang increases every year, we are optimistic to become the new benchmark as the best international standard business hotel in Tangerang," said Chief Operating Officer of Accor Malaysia, Indonesia and Singapore, Gerard Guillouet. Novotel Tangerang has 266 spacious rooms, 17 of which are Executive Suites. The hotel rooms with new and innovative designs have a variety of features designed for convenience and add a feeling of space and freedom of movement for the guests. The guests staying in the Premier Floor will get an exclusive check-in services as well as special access to 114 | THE PRESIDENT MAGAZINE DECEMBER 2014

the Premier Lounge, located on the upper floor. Premier Lounge offers breakfast, afternoon tea party and meeting rooms. Novotel Tangerang provides internet access of free Wi-Fi throughout the hotel, including the rooms. The service of Meeting@Novotel, Novotel Tangerang, provides services that can be tailored to the scale of meeting, both small to large meetings. In order for guests to feel comfortable in conducting meetings, Novotel Tangerang provides seven meeting rooms, four break-out spaces and 1,600 m2 ballroom that can accommodate up to 2,000 guests - which is the largest meeting room in Tangerang, Banten. The entire meeting rooms are equipped with modern audio-visual facilities and a team of experienced technicians who are ready to help and ensure that the entire event takes place smoothly and successfully. Other facilities include a Novotel typical restaurant, The Square Restaurant, which is located in the Podium Floor, serving a wide selection of local and international dishes. With an open kitchen concept, the guests can enjoy the experience of interacting directly with the chef. The Lounge Bar, which operates until midnight, is the ideal place to relax and enjoy a drink in a cozy atmosphere.

NEWS & EVENT

Indonesia Infrastructure Week 2014

Vice President Jusuf Kalla opened the Indonesia Infrastructure Week 2014 at the Jakarta Convention Center, Senayan on Wednesday (11.05.2014. In his speech, JK urge to continue to work in realizing the infrastructure in Indonesia "One of the topics in talking about is the infrastructure, we hope not only talked about but also worked," says Jusuf Kalla. In a speech read by approximately 30 minutes, JK repeatedly stressed the importance of taking action to follow up the results of the conference and infrastructure seminars that has been done for many times. JK said, all parties should not just be satisfied with seminars and conferences. "Let us not be satisfied with the seminar, do not be satisfied with the conference, but we have to work it," says Jusuf Kalla. JK also mentioned the importance of the increase in electrical

energy. According to him, the entire sector should be enhanced and developed as a priority sector so that economic growth can be achieved. After giving a speech, Vice President Jusuf Kalla opened the event by beating a gong. After the gong is struck, he returned to the podium and re-emphasized the importance of doing something rather than talking, this time the statement was addressed to invited guests from abroad. "This (beating a gong) is the traditional celebration, we need to announce to work not to speak," said Jusuf Kalla with applause from the invitation. He also taking the time to shop around and look directly conference area which enlivened the company both at domestic and abroad.

THE PRESIDENT MAGAZINE DECEMBER 2014 | 115

NEWS & EVENT

Traditional Touches Steal Jakarta Fashion Week Putting Indonesian traditional touches on the modern fashion items proved to be a winning charm for Jakarta Fashion Week 2015, held early November 2014. At least five top local designers – Sapto Djojokartiko, Vinora Ng, Peggy Hartanto, Toton Januar and Albert Yanuar – stole fashion enthusiasts’ attention for the authentic Indonesian touches they put on their designs during the event, said Diaz Parzada, Jakarta Fashion Week’s creative director. The five designers were considered bringing the best of Indonesia and presented it in a modern way that would wow even international audiences — “not in an ethnic style people are probably used to seeing,” he added. Januar, for example, applied an embroidery technique from West Sumatra and Tasikmalaya to a modern cut, said Parzada, former editorial services director of Dewi, an Indonesian fashion magazine.

While Vinora Ng used colors inspired by Dutch tiles and plaited-look cloth — a mixed between a European and Indonesian touch. “They got attention because audience wanted to see not only their creativity, but also how they utilize the Indonesian materials,” said Parzada. Aside from the five designers, the other Indonesian prominent designers also had successful shows. “Muslim wear collections showed really well too,” he said, referring to several lines from designers of Dian Pelangi, Etu by Restu Anggraini and Norma Hauri. Parzada said Indonesia has gained prominence in the world Muslim wear fashion. In the ready-to-wear category, Parzada said luxurious designs from Patrick Owen, Rosalyn Citta and Tex Saverio received much applause. “Designers Oscar Lawalata and Jenahara too,” he added. The Jakarta Fashion Week this year, according to him, has brought together many talents, but more importantly, the event also provided an opportunity for designers, manufacturers and buyers to meet. Among the buyers who showed huge interests for the Indonesian lines on display were those from Malaysia, Singapore, Thailand and Japan.

NEWS & EVENT

Borobudur Classic 2014 – ASEAN PGA Tour 2014 at Borobudur International Golf Country & Club, Magelang

Supravee Phatam from Thailand, winner of Borobudur Classic 2014 - ASEAN PGA Tour 2014

A total of 120 golfers from several countries in Southeast Asia to compete in Borobudur Classic golf tournament 2014 – ASEAN PGA Tour 2014 Series, at Borobudur International Golf Country & Club, Magelang, on November 18 – 21. The tournament was held for four days is also to support the tourism sector in the city of Magelang and surrounding areas. By choosing Magelang as the location of the game, golfers and guests are expected to visit attractions such as Borobudur Temple and others. According to Agus Triyono, Secretary General of the Professional Golf Tour Indonesia (PGTI), professional golfers from Thailand, Brunei, Singapore, Myanmar, and Australia participated in this tournament He said the implementation of this tournament is aiming to capture golf talented athletes in the country, which is still very lack in athletes. Borobudur Classic is one of ASEAN’s official PGA tournament, which has a huge benefit to the development of golf in Indonesia. According to him during this golf development in Thailand and Malaysia, they are very advanced in golf. “We provide the opportunity for young golfers Indonesia to participate in this tournament,” he said. Chairman of the organizing committee, Rully Lasahido, this tournament with total cash prize of US $ 60,000 will be on the professional golf agenda in Magelang. 118 | THE PRESIDENT MAGAZINE DECEMBER 2014

NEWS & EVENT

19th Anniversary Jababeka Golf & Country Club Golf Tournament

In commemorating the 19th anniversary, Jababeka Golf and Country Club (JGCC), Kota Jababeka Cikarang, West Java held a golf tournament titled "19th Anniversary Jababeka Golf and Country Club." The tournament was held for two days, 29 to 30 October 2014, followed by more than 150 golfers both members and non-members. Participants come from a variety of areas such as Bekasi, Tangerang, Jakarta, Bandung, Karawang, and others. Qualifying produce 16 golfers is Park Hee Jin, Maki K, Won DG, Timothy K, Joseph Yusran, Lee JD, Jung HY, Lim IT, 120 | THE PRESIDENT MAGAZINE DECEMBER 2014

Kim SH, An SH, Oh IC, JR Lim, Jo YG, Watanabe, Lee Jae Duk, and Watanabe S. Winner of last year JGCC Park Hee Jin (South Korea) failed to defend his title. However, other South Korean golfer, Lee Jae Duk, managed to win the 19th Anniversary of Jababeka Golf and Country Club after the final round to beat golfer Japan, Watanabe S. Lee Jae Duk will represent JGCC in Credit Suisse Tournament along with the other winners of Club Championship.

Ministry Directory

Ministry of Coordinating Maritime Affairs

Jl. Lapangan Banteng Timur No.2-4, Jakarta Pusat 10710 Ministry of Coordinanting Political, Legal & Security Affairs

Jl. Medan Merdeka Barat No. 15 Jakarta Pusat 10110 Telp. 021 - 3521121 www.polkam.go.id Ministry of Agriculture Jl. Harsono RM No.3 Ragunan PS. Minggu Jakarta 12550 Tlp: 021-780 4056 www.deptan.go.id Ministry of Cooperatives and Small Medium Enterprises

Jl. H.R. Rasuna Said Kav. 3-5 Kuningan Jakarta 12940 Telp. 021-5204366-72 www.depkop.go.id Ministry of Social Affairs

Ministry of Coordinating Human Development and Culture Jl Medan Merdeka Barat No 3 Jakarta Pusat Tlp 021-3453055 www.esdm.go.id Ministry of Agrarian and Spatial Planning Jalan Sisingamangaraja Nomor 2, Kebayoran Baru Jakarta 12110 Telepon 021-7393939 www.bpn.go.id Ministry of Religious Affairs

Jalan Lapangan Banteng Barat No. 3 â&#x20AC;&#x201C; 4 Jakarta 10710 Telepon: (+62 21) 3811679 www.kemenag.go.id Ministry of Industry

Ministry of Coordinating Minister for People Walfare Jl. Lapangan Banteng Timur No.2-4, Jakarta Pusat 10710 www.menkokesra.go.id Ministry of Culture and Elementary and Socondary Education Jalan Jenderal Sudirman Senayan Jakarta 10270. Telp. 021-5731618, 5703303 www.kemendiknas.go.id Ministry of Trade

Gedung Utama Lt. 5 Jl. M. I. Ridwan Rais No. 5 Jakarta Pusat 10110 Telp : (021) 23528404 www.kemendag.go.id Ministry of Research and Technology and Higher Education

Jl. Salemba Raya No. 28 Jakarta 10430 Telepon: 021-3103591 www.depsos.go.id

Jl. Jend. Gatot Subroto Kav. 52-53 Telp. +62 21 5255 509 www.kemenperin.go.id

Ministry of Finance JJl. Dr. Wahidin Raya No. 1 Telp. (021) 386.1489 www.depkeu.go.id

Jl. Jend. Gatot Subroto Kav. 51 Jakarta 12950 Telepon: 021-522 9285 www.depnakertrans.go.id

Jl. Medan Merdeka Selatan No.18 DKI Jakarta 10110 Telp :+62 (021) 3804242 www.menlh.go.id

Ministry of Villages, Disadvantaged Regions and Transmigration

Ministry of Evergy and Mineral Resources

Ministry of Transportation

Jl. Medan Merdeka Barat No. 8 Jakarta 10110 Telp: 021-3811308 www.dephub.go.id Ministry of Public Works and Public Housing

Jl. Pattimura 20, Kebayoran Baru, Jakarta Selatan (021) 7392262 www.pu.go.id Ministry of Communications and Information

Jl. Medan Merdeka Barat No. 9, Jakarta Pusat, 10110 Telepon: (021) 38433507 www.depkominfo.go.id Ministry of Administrative and Beraucratic Reform

Jl. Jend. Sudirman Kav. 69 Jakarta Selatan - 12190 Telp. (+6221) 7398381 - 89 www.menpan.go.id Ministry of National Development Planning

Jalan Taman Suropati No.2 Jakarta 10310, Telp. 021 3193 6207 www.bappenas.go.id Ministry of Public Housing

Jalan Raden Patah 1 No. 1 Lt.2 Wing 4, Jakarta Selatan Tlp : 021 729 7727 www.kemenpera.go.id

Ministry of Manpower

Jl. Abdul Muis No. 7 Jakarta Pusat DKI Jakarta 10110 Tlp : 021-3500 334 www.kemenegpdt.go.id Ministry of Tourism

Jl. Pejambon No.6. Jakarta Pusat, 10110 Telp : (+62 21) 344 1508 www.parekraf.go.id Ministry of Foreign Affair

Jl. Taman Pejambon No.6 Jakarta Pusat 10110 Telp : (+62 21) 344 1508 www.kemlu.go.id Ministry of Defence

Jl.Medan Merdeka Barat No. 13-14 Jakarta Pusat Telp : 021-382050 www.kemhan.go.id Ministry of Youth and Sport

Jl. Gerbang Pemuda SenayanJakarta 10270 www.kemenpora.go.id Ministry of Home Affair

Jl. Medan Merdeka utara No. 7 Jakarta 10110 Telp : (+62 21) 384 0054 www.depdagri.go.id

Jl. MH Thamrin 8, Jakarta 10340, PO.Box 3110 JKP 10031 Tlp. (021)316-9687 - 88 www.ristek.go.id Ministry of Environment and Forestry

Gedung Utama Lt. 5 Jl. M. I. Ridwan Rais No. 5 Jakarta Pusat 10110 Telp : (021) 23528404 www.esdm.go.id Ministry of Maritime Affairs and Fisheries

Gedung Utama Lt. 5 Jl. M. I. Ridwan Rais No. 5 Jakarta Pusat 10110 Telp : (021) 23528404 www.kkp.go.id Ministry of Woman Emporment and Child Protection

Jl. Merdeka Barat 15 Jakarta 10110 Telepon: 021-380 5563 www.menegpp.go.id

Ministry of State Owned Enterprises

Jl. Medan Merdeka Selatan No. 13 Jakarta 10110 Indonesia Telp. 021-29935678 www.bumn.go.id Ministry of State Secretary

Jl H.R.Rasuna Said Blok X.5 Kav. 4-9, Blok A, Lt.6 Jakarta 12950 Telp. 021-5201587, 5201591 www.setneg.go.id Ministry of Health

Jl. Rasuna Said Blok X. 5 Kav. 4-9 blok A Jakarta 12920 Telp : (+62 21) 520 52090 www.depkes.go.id