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Emirsyah Satar Soaring With Garuda Indonesia The President Post/Nandi Nanti

JAKARTA (TPP) – Industry players and the general public agree that Emirsyah Satar has been successful in improving the performance and service quality of Garuda Indonesia since he took the helm and turned the flag carrier into an airline that makes Indonesians proud of.

W

hen he was appoi nted the CEO & President of Garuda Indonesia in March 2005, Emirsyah wasted no time to revamp the company’s management. At the time, Garuda Indonesia was still emgoiled in a messy and disorganized management. The airline was experiencing operational loss with 85% of its routes being non-optimal that incurred losses for the company.

Since then, he has fixed many things, starting from rebuilding consumer trust to building communications from the top management level to the lower management level. Emirsyah recently said that the company’s revenue had risen 42% to Rp 22.97 trillion ($2.5 billion) in the January-November period from a year earlier. Net income jumped 124% to Rp 725 billion, exceeding its full-year 2011 estimate of Rp 702 billion.

Emirsyah further said that net income could increase to Rp 1 trillion this year from Rp 515.5 billion in 2010. Revenue will probably rise to Rp 26 trillion this year from Rp 19.5 trillion recorded in 2010, he said. The company expects its number of passengers to increase by 20% in 2012, aided by additional aircraft and new domestic and international routes, Emirsyah said. The airline carried 15.45 million passengers in the 11 months through November, up 36% from the same period in 2010, and it expects to fly a total of 17 million this year.

“This is not the success of one or two individuals but the success of a management that was willing to improve and change,” he said.

Previously, in 2001, Emirsyah was Garuda Indonesia’s finance director. With his rich experience in the financial sector which he gained from several companies like Price&Waterhouse, Bank Niaga and Bank Danamon, he successfully restructured Garuda Indonesia’s $1.8 billion debt, thus rescuing the flag carrier from going bankrupt.

His success in restructuring Garuda’s finance in 2001 landed him the “Financial Restructuring of the Year” title by New Yorkbased “Travel Finance” magazine.

In 2003, Emirsyah left his post as Garuda Indonesia’s finance director for a new position as Deputy CEO Bank Danamon, but returned to Garuda Indonesia to assume a new role after the government appointed him as CEO and President in March 2005.

Emirsyah has also been elected

THE ECONOMY

as Chairman of INACA (Indonesian National Air Carrier Association) since 2008 and as a member of Board of Governors IATA (International Air Transport Association) since 2010.

Garuda Indonesia currently has around 1,000 pilots, both local and foreign, the number of which will be increased by 400 more pilots by 2015.

The airline launched Garuda Indonesia Experience program at the end of 2009 as a form of service quality that offers Indonesian characteristics derived from Indonesian culture, which adopts five senses: sight, sound, taste, scent, touch.

“Right now we have around 200 young pilots undergoing training and they will be ready next year,” Emirsyah explained. Pilot shortages can be overcome with opening aviation schools such as the one in Jababeka. “I think that’s a positive thing, so why not?”, he said.

The airline launched Garuda Indonesia Experience program at the end of 2009 as a form of service quality that offers Indonesian characteristics derived from Indonesian culture, which adopts five senses: sight, sound, taste, scent, touch.

The aim of Garuda Indonesia Experience is to offer foreign passengers a taste of Indonesia while still on board of Garuda Indonesia airplane before they even entered the country, and for Indonesians going abroad to make them feel still at home until they really get off the plane. There is also the “Quantum Leap 2015” program in which Garuda Indonesia is expected to operate 154 aircraft by 2015, up from a total of 88 aircraft currently.

Another breakthrough that Garuda Indonesia will make in 2012 is to collaborate with various parties as part of its commitments to improve services for its customers, especially its premium customers.

One of the examples is the recent signing of MoU between Garuda Indonesia and Bank Nega-

BUSINESS

President Invites Hakka Chinese Bizmen to Invest in MP3EI Projects

Wanandi Slams Demonstrators as Threat to Investment

President Yudhoyono asked around 5,000 invitees who attended the gathering not to miss the momentum to create various new opportunities.

Unless they were stopped they could erode the country`s image as an attractive and secure foreign investment destination.

PAGE A5

PAGE B1

CEO & President of Garuda Indonesia Emirsyah Satar. In 2001, Emirsyah was Garuda Indonesia’s finance director. With his rich experience in the financial sector which he gained from several companies like Price&Waterhouse, Bank Niaga and Bank Danamon, he successfully restructured Garuda Indonesia’s $1.8 billion debt, thus rescuing the flag carrier from going bankrupt. His success in restructuring Garuda’s finance in 2001 landed him the “Financial Restructuring of the Year” title by New York-based “Travel Finance” magazine.

ra Indonesia on “super premium service” for premium customers of the two state companies. The MoU will be elaborated in a special cooperation agreement for premium customers which will include special pre-flight and post-flight services in both domestic and international flights. Under the MoU, BNI Premium customers and Platinum Garuda customers who want to take domestic and international flights may use a helicopter service from Jakarta and its surrounding areas to go to the Soekarno-Hatta airport.

INVESTMENT

Pertamina Set to Invest Rp52.8t

To support the super premium service program, the cooperation will include other special programs such as joint promotions, point rewards, development of tourism packages, and other programs for BNI Emerald, BNI Platinum Card and Garuda Frequent Flyer Platinum card holders.

Next year Garuda Indonesia will add five more small jets. It will also open new routes, 16 domestic routes and three international routes (Taipei, India, and Haneda, Japan).

WHAT'S ON 2012

Calendar of Events 2012

Pertamina has set the target of net profit for 2012 at Rp23.5 trillion, up 32% from the net profit forecast of Rp20.7 trillion for this year.

The year 2012 has been included in many prophecies and is considered to be very important spiritually. But we’re not talking about any spiritual events or prophecies right now; here are scheduled sensible events that deserve out attention.

PAGE B3

PAGE C1

Number of Russians to Bali Up 48.5% The number of Russian tourists to Bali increased 48.5% in a month from 5,202 in October to 7,726 in November 2011.

Actually, more Russian tourists wished to come to the Indonesian island para-

dise, but they had trouble in flying there, a tourist guide, Made Putrawan, said in Denpasar Friday, Antara reported.

Most of the Russian tourists had to fly to Bali by chartered planes.

The Bali tourism office said

that almost every month the number of Russian tourists to Bali increased, especially in the past 11 months. Until November the number had reached 63,916, or 2.55% of the total number of foreign tourists reaching 2.5 million.

CSPI to be in 3,830-3,850 Range by Year End Indonesia`s Composite Stock Price Index (CSPI) is expected to be in the range of 3,830-3,850 points at the end 2011, stock market analyst David Nathanael said Friday, as “funds managers would still be engaged in window-dressing activities.”

"We are optimistic that the Indonesian Stock Exchange index (BEI) will be able to achieve that range, if

fund managers continue buying shares, thereby pushing up stock prices," he said.

Nathanael said fund managers` window-dressing activity was already pushing stock prices upward although the share transactions in the IDX were still relatively low.

Nathanael said market activity had been sluggish and only showed a relatively small volume of transactions of 640 million

shares with a value of Rp430 billion, far less than the usual average of Rp3,.6 trillion to Rp4 trillion.

The IDX opened 0.23% or eight points higher at 3,817 but still had the opportunity to reach 3,830. Foreign participants on Thursday (Dec 29) had made share purchases amounting to Rp280 billion which pushed the index to the 3,800 point level.

The President Post

A2 December 12, 2011

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Opinion Indonesia’s Strategic and Economic Position

1989

Indonesia is most fortunate to be strategically located in East Asia, a dynamic regional economic and business environment.

The region is presently attracting world attention and is becoming an important driving force of the global economy.

By Atmono Suryo

I

Strategic Location

Indonesia’s internal situation is caught in a miserable situation because of such sensitive issues as rampant corruption, poor rule of law, no good governance, weak leadership, declining morals etc. However, Indonesia’s external economics is in a much better situation. The country’s overall international standing is quite high, and its position in the regional and global economy is remarkably on the rise.

On account of its economic performance Indonesia is rated among the Top Ten Emerging countries, together with Brazil, China, India, South Korea, Turkey, Mexico and others. They are among the ones reshaping the global economy, in the sense that developing countries are now in a better position and occupying a much bigger share of the world economy.

In this vast East Asia–Pacific region Indonesia has become one of the key leading and well-respected countries. This is quite a big accomplishment for the country which is internally still caught in a muddling process as indicated before.

1991 1993 1994 1998 The East Asia-Pacific region occupies a very significant part of the world, in terms of population but also in terms of economics.

Indonesia’s Position

An important factor to note on Indonesia’s position is that in terms of geo-economics the country is very well-located. Indonesia is most fortunate to be strategically located in East Asia, a dynamic regional economic and business environment. The region is presently attracting world attention and is becoming an important driving force of the global economy.

In terms of geography Indonesia is part of the South East Asia region; part of East Asia and is located in the larger Asia-Pacific region. A region stretching from Asia to the America’s which hosts a number of high-income advanced economies with high technologies.

In this vast East Asia–Pacific region Indonesia has become one of the key leading and well-respected countries. This is quite a big accomplishment for the country which is internally still caught in a muddling process as indicated before.

“Economic Concentric Circles”

In terms of economic “concentric circles” Indonesia belongs in the first place in the South-East Asia region, composed of ten ASEAN countries which have been doing quite well. ASEAN is on the road to establish its Economic Community by 2015. It is expected that this will further strengthen the region’s economy. The region is has the potential to become an important powerhouse in the regional economy.

Secondly, Indonesia is fortunate to be counted as a prominent member in the fast moving East Asian region, with the two giants in the lead, China and India.

The East Asia region has still to design and agree on its regional architecture. The responsible institution, the East Asia Summit, covers some 20 countries composed of developed countries such as Japan, Australia and New Zealand as well as developing countries which includes China, India, South Korea and the ASEAN

countries. Russia and the United States are participating countries in the East Asia Summit. There is no inkling, however, where the East Asia region intends to go.

Meanwhile, active market forces are pushing towards closer integration among the countries in the East Asian region. This trend is expected to continue in the decades to come.

Thirdly, Indonesia is also part of the very large Asia-Pacific region which covers Asian economies, including Russia, USA, Canada and Mexico, Chile and Peru.

As the United States is anxious to forge closer ties with Asia, the Pacific region could be back again on the screen of the Asian countries.

As can be seen from the map, the East Asia-Pacific region occupies a very significant part of the world, in terms of population but also in terms of economics.

According to the World Bank robust domestic consumption in

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the region (in particular in the East Asia region) has been a key factor for the region to lead global economic growth. In addition, intra-regional trade has also supported this momentum factor.

The developing economies in the region have recovered well in 2010. Three countries in East Asia, China, India and Indonesia became the models of solid recovery, by achieving high economic growth.

As to the year 2011, the United Nations and its agencies forecast that the region is set to grow by 7.3% in 2011, much higher than the growth of the global economy.

However, this growth is accompanied by fresh challenges: high food and fuel prices and volatile capital inflows.

SOME IMPORTANT POINTS TO NOTE

• Being located quite well in such a dynamic and potential region, it is of extreme importance for Indonesia to continue to boost its good relations with the coun-

tries in the region • There is the impression, however, that Indonesia is not quite at ease yet in this highly competitive region.

• For the years ahead it would be sensible to give high priority to the entire region on the basis of economic “concentric circles”, in particular to secure the implementation and well-functioning of the ASEAN Economic Community by 2015.

• To promote East Asia”s closer integration and to strengthen the Asian region to be on a par with Europe and North America, and wherever possible to develop the larger Asia-Pacific Economic Cooperation at a later stage.

pabilities • Very low “doing business” rating – 121th out of 183 countries compared to Singapore (1); Malaysia (21); Thailand (19); Phillippines (134) • Low human development index, 124th out of 187 countries (compared to Singapore 26; Malaysia 61; Thailand 103; Phillippines 112) • Still overall low international confidence in Indonesia’s business, though many recognize very well the country’s good potentials • Not enough strong national confidence and forceful spirit needed to spur the country to much higher rates of economic development and growth

It must be stressed, however, that in many areas Indonesia has its weak spots, including in such areas as: • Very low competitive edge – extremely weak infrastructure -low productivity – low capacity building activities – no strong private sector position and ca-

It is becoming urgent to bring improvements to those weak economic areas, as they have become big economic obstacles and a deterring factor to achieve further progress.

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OFFICE Menara Batavia 25th Fl. Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Phone : (021) 572 7337 Fax : (021) 572 7338 Email : ceo@thepresidentpost.com Web : www.thepresidentpost.com

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December 12, 2011 A3

The Region Turbulent Times Cloud the Global Economy The global recession is taking longer than predicted before. The road to recovery also appears to be a long, rocky and windy one, longer than estimated before. They are clouding the economies of the whole world, stretching even not only to Asia but also Latin America and Africa.

By Atmono Suryo

A

Turbulent Times

As we are leaving the four crucial years behind us, the years 2008/9 up to 2011, and enter the new year of 2012, we will undoubtedly note that dark clouds are still in the air. This means that the world might continue to face turbulent times, at least for the coming months ahead. It will all depend upon the steps taken by the advanced countries to deal with the Euro-zone debt crisis.

The global recession is taking longer than predicted before. The road to recovery also appears to be a long, rocky and windy one, longer than estimated before. They are clouding the economies of the whole world, stretching even not only to Asia but also Latin America and Africa.

Global Weaknesses

Weak global growth and declining confidence were dominating factors throughout the year 2011.

There are still different projections for the year 2012, but it appears

that the many uncertainties in major developed countries will continue to drag global recovery.

The following IMF chart shows that global weaknesses are projected to persist for the year 2012, affecting the world GDP growth, the Euro area, the US and even Russia, China and APEC (AsiaPacific) countries (Figure 1).

As times goes on during the first half of 2012, we will see more clearly how the global economy will develop with the hope that recovery will finally be on a better footing.

Main Drivers of Global Recovery

A brighter part looming on the horizon is that developing countries are the ones which continue to gain strength, especially since the third quarter of 2009. In fact, developing countries growth has been the main driver of the global recovery. They have been contributing more than half of the expansion of the world economy.

According to the World Bank the rebound has been led by large emerging countries in Asia and Latin America, in particular Chi-

Figure 1. Weakness is Projected to Persist

Figure 3. GDP ASEAN countries

WEO Real GDP Growth Projections (percent change from a year earlier)

695.1

World

Euro area

Adv. APEC

U.S.

Japan

Emg. APEC

China

Russia

Mexico

2011 (Sep 2011)

4.0

1.6

1.6

1.5

-0.5

7.6

9.5

4.3

3.8

2011 (Apr 2011)

4.4

1.6

2.8

2.8

1.4

7.8

9.6

4.8

4.6

2012 (Sep 2011)

4.0

1.1

2.3

1.8

2.3

7.3

9.0

4.1

3.6

2012 (Apr 2011)

4.5

1.8

2.9

2.9

2.1

7.7

9.5

4.5

4.0

GDP ASEAN Countries, USDb, 2010 312.6 219.0

217.4

189.1 102.0 6.3

Source: IMF

R

o

La

Figure 2. World Economies

PD

a

di

bo

14.62

iD

e

un

Br

u ar

ar

m

ala

ss

m Ca

35.6

12.0

11.4

nm

M

ya

m

na

et

Vi

s

ne

pi

ilip

Ph

e

or

ap

ng

Si

ia

ys

ala

M

d

an

ail

Th

Source: CIMB Niaga USD Trillion, GDP

5.75

5.39 3.30

USA

China

Japan

Germany

2.56

France

2.26

2.04

2.02

1.8

United Kingdom

Italy

Brazil

ASEAN

1.56

1.52

Canada ASEAN-5

1.48

1.43

1.37

1.22

1.00

Russia

India

Spanish

Australia

Mexico

Source: CIMB Niaga

na, India and Brazil. An important factor in the economy of the developing countries is domestic demand. Developing countries have also led the recovery of international trade. Building on ties among developing countries which are moving up quite significantly, this South-South relations should be encouraged and promoted.

Regional Grouping

Regional grouping among developing countries appears to be

a must to strengthen their economies and position in the global economy. In this connection one should refer to the regional grouping among the countries in South East Asia which now covers 10 countries. It will soon become 11 with the addition of Timor Leste.

This regional grouping called ASEAN has the pontential to become another powerhouse in East Asia aside from China and India.

ASEAN has a population of approximately 600 million people, 8% of the world population.

In 2010 its combined nominal GDP has grown to $1.8 trillion.

It is rightly being observed that if ASEAN were a single country, it would rank as the ninth largest economy in the world and the third largest in Asia in terms of nominal GDP. These two factors, large GDP combined with growing domestic demand and purchasing power plus its natural resources give ASEAN another edge in the global economy.

According to data compiled by

CIMB Niaga ASEAN, with its $1.8 trillion GDP, is following China and Brazil as one the three largest emerging economies in the world. It will be most surprising for many of the Indonesian community (which includes a large number of pessimistic observers) that the combined ASEAN economy is larger than many developed countries such as Canada, Russia, Spain, Australia and many other developed countries in the Euro-zone, including the Netherlands.

To be among the ten largest economy in the global economy ASEAN could and should play a leading role in the world with the understanding that economically and politically ASEAN would strengthen its unity and cohesiveness. To that end, one would greatly respect ASEAN’s strategic decision to adopt the ASEAN Community grand design.

In terms of GDP and among the ASEAN countries, Indonesia is the largest country, almost twice as big as Thailand and three times bigger than Malaysia. But in tems of GDP per capita Indonesia is among the six lowest countries, surpassed by Singapore, Brunei Darussalam, Malaysia and Thailand (Figure 3).

Being by far the largest economy in ASEAN and its tremendous international experiences, Indonesia is called upon to think big and be pro-active and to continue to be in the lead within ASEAN. It has done very well during its chairmanship, and it should aim further to strengthen ASEAN as an economic as well as a political powerhouse in the regional and global setting.

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A4 December 12, 2011

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The Economy ECONOMIC UPDATES RI Enjoys First-ever Surplus in Trade with China Indonesia for the first time ever enjoyed a surplus of $106.9 million in its non-oil/non-gas trade with China in October 2011, the Central Statistics Agency (BPS) said.

In October 2011, Indonesia`s exports to China were valued at $2.24 billion while its imports from the Asian economic giant reached $2.13 billion, BPS Deputy Head for Distribution and Service Statistics Djamal said on Thursday.

Director General of Foreign Trade at the Trade Ministry Deddy Saleh said the surplus was fueled by an increase in the export of crude palm oil, industrial goods, coal and other mining products.

Since 2008 Indonesia had recorded a deficit in its trade with China. BPS recorded a decline in the deficit of Indonesia`s trade with China only in June 2011 when it fell to $365.2 million from an average of $500 million previously. The deficit rose again to $384 million in July 2011, plunged to $61 million in August 2011 and moved up again to $125.5 million in September 2011.

Indonesia`s exports to China mainly include crude palm oil, oil and gas to China while its imports from the latter cover electronic goods, synthetic fiber and turbine.

Ten Consortiums Pass Jakarta MRT Project Prequalification Bid A total of 10 consortiums or joint operation contractors have passed the prequalification tender for the construction of the first phase of the Jakarta Mass Rapid Transport (MRT) project, an official said.

"The MRT project will link Lebak Bulus in South Jakarta with the Hotel Indonesia Traffic Circle in Central Jakarta (the north-south phase)," PT MRT Jakarta President Director Tribudi Rahardjo said here recently.

Based on data at PT MRT, 13 consortium bidders took part in the prequalification tender. Of the 13 bidders, five were said to be qualified for the next MRT elevated project tender and five others for the MRT`s underground section, while the other three failed the prequalification.

Tribudi said the ten consortiums were expected to follow the next tender which would be called for the physical construction of the project in January next month. Five consortiums which passed the tender for the construction of the underground segment were Kajima-Waskita Joint Operation (JO), Obayashi-ShimizuJaya Konstruksi-Wijaya Karya JO, SMCC-HK JO, Taisei-PP JO and Tokyo-Adhi JO. "The five consortiums for the elevated section of the MRT incude HazamaMurinda Iron Steel JO, SMCC-NK JO, Sunitomo-Adhi JO, Tekken-Hutama-Marubeni JO and Tokyo-Wika JO," Tribudi said.

"The 10 consortiums have the right to take part in the tender of the MRT physical projects. They will compete to win 6 packages of the MRT physical construction," he said.

National Industry Figures in Q3 Promising: Minister The growth of the non-oil/non-gas commodity processing industry was higher than that of the gross domestic product(GDP) which reached 6.54% in the same period.

I

2011 grew by 6.49%, well above the growth of the non-oil/non-gas commodity processing industry in 2010 which only reached 5.09%.

The 6.49% growth rate was the highest since 2005," he said.

The growth of the non-oil/nongas commodity processing industry was higher than that of the gross domestic product(GDP) which reached 6.54% in the same period, he said.

"Cumulatively, the non-oil/ non-gas commodity processing industry in the third quarter of

Until the third quarter of 2011 the base metal and steel industry recorded the highest growth of 15.03% among those grouped in the non-oil/non-gas commodity processing industry, he said.

"The textile product and footwear industry expanded by 8.63% and the food, beverage and tobacco industry grew by 7.29%," he said.

ndustry Minister MS Hidayat said on Wednesday the national industry`s performance in the third quarter of 2011 was quite promising, with the non-oil/nongas commodity processing industry growing 6.98%.

Meanwhile, the non-oil/non-gas commodity processing industry`s export performance also continued to show a positive trend, with non-oil/non gas exports in the January-September 2011 period growing 33.4% to $91.8 billion compared with the same period last year, he said.

Likewise, investment in the industrial sector until the third quarter of 2011 also rose significantly. "Domestic investment totaled Rp52.98 trillion, far higher than Rp25.61 trillion throughout 2010, while foreign investment reached $14.34 billion, far higher than throughout 2010," he said.

"Domestic investment totaled Rp52.98 trillion, far higher than Rp25.61 trillion throughout 2010, while foreign investment reached $14.34 billion, far higher than throughout 2010."

Industry Minister MS Hidayat

Govt to Build 120 Industries to Support MP3EI Industry Minister MS Hidayat said the government would build around 120 industries in 2012 to support the implementation of Indonesia`s Economic Development Acceleration and Expansion Master Plan (MP3EI), especially in Java.

"In the Java corridor, the focus will be on toll road and industrial center development. All programs are downstream and I myself will lead development in the second corridor of Java. More than 120 industries are ready for groundbreaking in 2012," he said here on Tuesday.

Investment meanwhile was estimated to be higher than initially predicted and the government had admitted the rise in the need for investment for the development of the six economic corridors. "Indeed it is higher than initially predicted, far higher," the chief of the Task Force for the Java Corridor of the MP3EI, Dedy Priatna said not long ago.

Dedi said investment in the Java corridor would be needed for the development of food and beverage industries, motor vehicle and car industries and ship building industries.

In connection with that he would re-confirm and ask again the commitment of businesses or private sectors with regard to seek clear information about their investment.

Infrastructure development projects in the 2012 MP3EI would cost Rp350.1 trillion and ground breaking would be done on 73 of them. From May in 2011 the MP3EI program has cost Rp461.6 trillion involving a total of 91 infrastructure and economic development projects.

The funds to be used for development projects in one would reach Rp1000 trillion in addition to funds from the national budget.The funds for infrastructure development in 2011 from the national budget reach around Rp20.6 trillion. For 2012 they will reach Rp36.7 trillion.

For 2013 to 2014 the funds from the national budget for the MP3EI projects will reach Rp300 trillion.

So, from 2011 to 2014 total national budget funds for the MP3EI infrastructure projects would reach Rp363.5 trillion.

President Holds Talks on C. Kalimantan Railway Project President Susilo Bambang Yudhoyono, Home Affairs Minister Gamawan Fauzi and Central Kalimantan Governor Teras Narang on Friday discussed the planned construction of a railway system in Central Kalimantan.

Following the meeting at the presidential office, Gamawan Fauzi said the discussion among other things touched on the question in which direction the railway system should be built, whether it was toward the east or toward the south.

The president asked that the railway construction concept be finalized. "Next month, we will present the concept in greater detail including a concrete plan, the financing source and timing," the minister said.

For his part, Governor Teras Narang said he had given the president relevant information on the railway system construction plan, "I explained there are now four lead participants in the auction we have initiated on the project. They will submit their proposals in May and the winners will be decided later," he said.

Teras said he did not remember the names of the bidders but added that they came from China, Japan and a number of European countries. "The value of the project is about Rp26 trillion," he said.

6Zgd[ddY 68H d[[Zgh V jc^fjZ heZXigV d[ h`^aah Vh V eVgicZg l^i]^c i]Z ]ZVai] hZXidg# LZ \d WZndcY h^beaZ XViZg^c\! Zchjg^c\ i]Vi djg Xa^Zcih WZcZÒi [gdb djg ZmeZg^ZcXZ ^c [ddY hV[Zin VcY ]n\^ZcZ# HiVcYVgYh VgZ bZi^Xjadjhan ^beaZbZciZY id ZchjgZ i]Z deZgVi^dc d[ V hV[Z VcY Z[ÒX^Zci [ddY WZkZgV\Z YZeVgibZci! i]Vi je]daYh djg g^\dgdjh hiVcYVgYh! Vh lZaa Vh >HD ''%%%# 6Zgd[ddY 68H ^h bdgZ i]Vc V [ddY hjeea^Zg# LZ VXi Vh V eVgicZg VcY V XdchjaiVci! d[[Zg^c\ djg ZmeZgi \j^YVcXZ id i]Z Hospitals,Oil Mining & Gas industries and Townsite catering ^c Vaa bViiZgh gZaViZY id [ddY VcY cjig^i^dc# Aerofood ACS Aerowisata Park Jl. Prof. Dr. Soepomo No. 45 IZWZi! ?V`VgiV &'-&% ™ >cYdcZh^V Tel. +62 21 8370 5076 Fax.+62 21 8370 5012 :bV^a# ^c[d5VZgd[ddY#Xd#^Y lll#VZgd[ddY#Xd#^Y

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December 12, 2011 A5

The Economy www.presidensby.info/Abror

President Invites Hakka Chinese Bizmen to Invest in MP3EI Projects President Yudhoyono asked around 5,000 invitees who attended the gathering not to miss the momentum to create various new opportunities.

P

resident Susilo Bambang Yudhoyono held a meeting with representatives of Asia`s Hakka Chinese community and asked them to participate in MP3EI (Economic Development Acceleration and Expansion Master Plan) projects.

"I invite you first as business players in Indonesia who certainly wish to serve your own country in an exemplary way by investing in areas you yourselves choose and think are the best for you," the president said at the meeting with the Association of Prosperous Hakka Indonesians (PHIS) at Hall D of the Jakarta Exhibition Arena here on Wednesday.

He said foreign investors were

expected to come to Indonesia in larger numbers in the days ahead but before that happened he wished to offer existing investment opportunities to domestic business players first.

President Yudhoyono asked around 5,000 invitees who attended the gathering not to miss the momentum to create various new opportunities. Through economic mechanisms, he said, businesses could also help improve the welfare of the Indonesian people by reducing poverty and unemployment.

"Do not wait. To those who can invest, mobilize businesses, let us cooperate to invest, develop the economy so that all people can enjoy the benefits," he said.

PHIS`s chief patron Murdaya Poo in his speech called on the Hakka Chinese community numbering around six million to invest in the country. "Hakka community as economic players, please hurry, use your savings to invest in Indonesia. Do not worry about the imperfect regulations or bureaucrats," he said.

President Yudhoyono in the company of First Lady Ani Yudhoyono said Hakka Chinese had the same rights and obligations as other Indonesian citizens. He called on them to participate in maintaining security and order as well as political and social stability for the sake of a better life for the nation.

Capital Spending to Focus on Infrastructure A finance ministry official said government capital spending in 2012 would be directed mostly for basic infrastructure development projects.

"Especially infrastructure projects of the ministry of public works such as road, bridge, irrigation network, airport and seaport development projects," the director general of budget affairs, Herry Purnomo, said here on Monday.

He said allocation of capital spending would also be done to eradicate obstacles and improve domestic connectivity. "It also includes projects in the MP3EI, projects financed by the government

to increase inter-regional connectivity," he said.

He said the capital spending would also be aimed at improving the capability of national defense with regard to building a national defense system and supporting funding for multi-year activities.

Other targets include increasing the capacity of mitigation and adaptation to the negative impact of climate change and readiness for dealing with natural disasters, he said.

The allocation of capital spending in the 2012 budget is expected to reach Rp168.1 trillion or 2.1% of the country`s gross domestic product, he said. The total

is an increase of Rp27.2 trillion or 19.3% from this year which was set at Rp141 trillion or 2.0% of the GDP. Until December 1, 2011 however capital spending had reached only 51.3% or Rp72.3 trillion.

Finance Minister Agus Martowardojo has ordered ministries to increase their quality of planning and budgeting as well as competency in absorbing capital so that they would not be easily involved in conflict of interests. "Our challenge is increasing competency because the volume of capital is increasing. Carelessness could make officials involved in a conflict of interest be used," he said.

Minister Cites Three Economic Growth Problems Finance Minister Agus Martowardojo said three problems had to be solved to enable the economy to grow faster.

"The economy can grow faster if we can overcome the obstacles that hinder growth," he said in his speech at the introduction of propeople programs under the 2012 State Budget here on Wednesday.

He said the three problems were corruption, lack of infrastructure facilities and bureaucratic red tape. With regard to corruption he cited the President`s statement that eradicating it was the task of all government officials at all levels as well as law enforcement officers.

On the lack of infrastructure facilities, he said the President had asked all offices at national and regional levels to mobilize all existing potentials.

"The central and regional gov-

ments," he said.

He said all of the problems had to be overcome in three years` time in line with the President`s order. "To achieve the goal, our roles must be improved so that we will not become problems but supporters of development and economic growth," he said.

Finance Minister Agus Martowardojo ernments have been asked to increase budget efficiency and reduce routine spendings, and to allocate the resulting savings for infrastructure development," he said.

Meanwhile, the minister said, fundamental reform was needed to improve the bureaucracy. "Efforts to improve the quality of bureaucratic services must not stop at better action plans and the granting of remunerations but also look at results and achieve-

The minister said the economy could still grow despite the current uncertainties in the world economy.

He predicted the country`s economy would grow 6.6% in 2011 based on the assumption that growth would reach more than 6.5% in the fourth quarter.

"Our assumption is a minimum growth of 6.5% but it could be more than that. As we have seen all sectors have grown well such as manufacturing, trade and communication. They remain the main growth drivers," he said.

Govt Set to Curtail Sugar Imports Quoting the results of a study, he said per capita sugar consumption in Indonesia was higher than that of many other countries. "If the matter can be resolved I think it will change our sugar consumption pattern. We can reduce sugar consumption or will never import sugar," he said.

The government will gradually reduce the import of sugar to meet domestic need, Trade Minister Gita Wirjawan said.

"The government will gradually reduce sugar imports while at the same time trying to boost domestic sugar production," he said here on Saturday.

While the government would gradually cut sugar imports, the people would hopefully reduce their sugar consumption, he said.

"The import of sugar is made because of high demand. Therefore, we have no other choice but to import white sugar," he said.

Trade Minister Gita Wirjawan "I appeal to the public to reduce their sugar need. Moreover, consuming too much sugar could give rise to health problem, such as diabetes," he said.

"All parties need to think of reducing or abolishing sugar imports. Only recently, I discussed domestic sugar production with the agriculture minister. Therefore, the commodity can be produced in large quantities to meet domestic need," he said.

President Susilo Bambang Yudhoyono held a meeting with representatives of Asia`s Hakka Chinese community and asked them to participate in MP3EI (Economic Development Acceleration and Expansion Master Plan) projects.

RI Migrant Workers Sent Home $5.6b up to October The amount of Indonesian migrant workers` remittances up to October this year was recorded at $5.6 billion or about Rp51.07 trillion, a manpower official said.

Deputy chief of the Indonesian Agency for Manpower

Protection and Placement Overseas (BNP2TKI) Lisna Y Poeloengan said here on Thursday the amount of migrant workers` remittances was recorded by the Bank Indonesia (BI/the central bank).

The remittances came from In-

donesian migrant workers in various regions in the Middle East, Asia - Pacific, Europe and the United States, Lisna said. "Most of the funds were transferred by migrant workers who worked in the informal sector," she said.

Of the total amount, $2.2 bil-

lion dollars came from workers in the Middle East, $3.2 billion dollars from those in the Asia-Pacific region, $111.7 million dollars from those in the American region, $19.5 million from those in Europe and Australia.

The President Post

A6 December 12, 2011

www.thepresidentpost.com

National www.presidensby.info/Haryanto

President: Corruption, Red Tape Hamper Economic Growth Complicated bureaucratic procedures, corruption and inadequate infrastructure facilities are the stumbling blocks to economic growth.

P

resident Susilo Bambang Yudhoyono admitted here Friday that corruption and complicated bureaucratic procedures were still obstructing Indonesia`s economic growth.

Speaking at a service conference of top government officials at the Bogor Palace, the president said another problem hampering economic growth was inadequate infrastructure facilities.

Present at the government working meeting were also Vice President Boediono, all cabinet

ministers, deputy ministers and the Bank Indonesia (central bank) governor.

"In the past, economic growth was constrained by unfavorable security conditions but now complicated bureaucratic procedures, corruption and inadequate infrastructure facilities are the stumbling blocks to economic growth," the president said.

According to the head of state, red tape hampering economic growth existed not only in central government offices but also

in provincial government agencies. "The bureaucracy is posing complicated problems but we have no other choice but to make serious efforts to fundamentally change this situation," the president said at the meeting to evaluate the government`s performance in 2011.

The President said , if the three problems he had mentioned were overcome comprehensively, he was optimistic that investment in the country would surge and thus drive the economy to reach a higher level of growth.

Dutch Historian Seeks Answer to Tan Malaka Grave Mystery A Dutch historian and researcher is waiting for the result of a DNA test on the remains of a man buried on a hill in Selopanggung village in Kediri district, East Java, to ascertain whether they really belonged to Tan Malaka, a legendary figure in Indonesia`s struggle for independence.

Although officially listed as a national hero, the location of Tan Malaka`s grave has remained a mystery and Harry A Poeze, a Dutch academic who has been studying the Indonesian revolutionary`s role in the country`s pre-independence history, is hoping the DNA test being conducted in a laboratory in Korea will finally solve the riddle.

The DNA test result would be available in January 2012, Poeze told reporters in Jember on Thursday after giving a general lecture titled "Tan Malaka, a Case Study" at Jember University`s Faculty of Letters.

"The DNA test outcome will hopefully answer the decadesold question of where Tan Malaka was buried after his execution and thereby provide further proof of my research findings," he said.

The DNA test outcome will hopefully answer the decades-old question of where Tan Malaka was buried after his execution and thereby provide further proof of my research findings."

Harry A Poeze Director of the Royal Dutch Institute for Caribbean and Southeast Asian Studies

Poeze, who is director of the Royal Dutch Institute for Caribbean and Southeast Asian Studies, had spent 20 years searching for Tan Malaka`s grave and finally come to a spot on a hill in Selopanggung village, Semen subdistrict, Kediri district, East Java, strongly believed to be the grave of the author of the epic literary work titled Madilog (Materialism, Dialectics, Logic).

"According to Zulfikar Kama-

rudin, one of Tan Malaka`s relatives, the result of the second DNA test at the laboratory in Korea will be announced next January and I am looking forward to it," he said.

But if the DNA test reslt was positive, the Indonesian government would have to decide whether the remains on the hill in Selopanggung village would be moved to the Kalibata Heroes` Cemetery in Jakarta or a monument be built at Selopanggung, Poeze said.

He said an Indonesian team had previously examined the remains at Selopanggung and in a report issued in March 2010 described them as those of a male of the Minang Mongoloid tribe who was 160-155 cm tall and was buried according to the Islamic faith.

Speaking at a service conference of top government officials at the Bogor Palace, the president said another problem hampering economic growth was inadequate infrastructure facilities.

RI, China Agree on Maritime Cooperation The Indonesian and Chinese governments agreed to promote and enrich strategic partnership in the Sixth Meeting of Indonesia-China Technical Committee on Maritime Cooperation which was held recently in in Bali.

They also agreed to further develop the institution-

al building of maritime cooperation between the two countries and improve plans for cooperation, the Indonesian foreign ministry said in a press statement here, Wednesday.

Both sides gave positive assessment on the achievement on the maritime cooperation as one of

the significant component in enriching the Strategic Partnership, which receive high attention from both leaders.

The Technical Committee reviewed the progress made since the 5th Meeting and expressed satisfaction about the achievements of cooperation in safety of navigation, maritime security, na-

An interesting thing the team had found, he said, was that the man`s two arms were in crosswise position behind his back, an indication he was shot to death as a prisoner.

The Dutch academic is also the writer of a book titled "Tan Malaka, the Leftist Movement and Indonesian Revolution."

Opposition Parties Fail to Function Optimally: Observer www.pasarkreasi.com

Indonesia`s opposition parties failed to fulfill their political function optimally in 2011, a political affairs observer said.

"The parties outside the government were still unable to effectively function as a force exerting pressures on the government," M Alfian, a political observer, said in an evaluation of the country`s economic and political performance in 2011 at the Akbar Tanjung Institute here Friday.

The Indonesian Democracy Party-Struggle (PDIP) as the largest opposition party failed to perform as an effective opposition force, he said.

"I don`t understand why this happened whereas they actually had great potential to deliver," he added.

But he believed PDIP`s failure as an opposition party had something to do with the existence of an internal conflict between Taufik Kiemas who tended to adopt a moderate stance towards the government, and his wife, Megawati Soekarnoputri, the party leader.

The two other parties outside the government - the Gerindra (Greater Indonesia) Party and the Hanura

The Hanura Party was more consistent in its opposition but unfortunately did not have enough seats in the parliament.

(People`s Conscience) Party - also showed lack-luster performance, Alfian said. "Gerindra lacked candid drive and did not even call itself an opposition party, was very moderate, occasionally critical but appeared to be very careful not to upset the government," he said.

The Hanura Party was more consistent in its opposition but unfortunately did not have enough

seats in the parliament.

Alfian said if the opposition parties continued to fail functioning effectively in absorbing popular discontent and experting pressures on the government, opposition in the streets would flourish and become an increasing phenomenon.

Segway Indonesia Jl. Teratai 14A Blok N-9 Jakarta Selatan 12530, Indonesia Phone : 021.7818309 Fax : 021.7800329 www.segwayindonesia.com

val exchanges, as well as marine scientific research and environmental protection.

They agreed that while continuing to implement the existing maritime cooperation projects, the two sides would further expand the scope and tap the potentials of cooperation.

The President Post

www.thepresidentpost.com

December 12, 2011 A7

Around Jababeka INDONESIA MOVIELAND:

The Borobudur Movie Project Currently in Postproduction “Borobudur- Paths to Enlightenment” approaching completion!

Text & Photos by Dr. Titus Leber

ter project enabled him to move with ease through the intricacies of Buddhist iconography, a knowledge which he could now greatly expand on the Borobudur, exhibiting one of the world´s largest legacies of visualized content from all schools of Buddhism.

O

ne of the most formidable interactive multimedia projects ever undertaken, bringing the legacy of Indonesia´s World Cultural Heritage site Borobudur to cyberspace, is now approaching its final stage after eight months of post-production.

Working away with a small team of handpicked programmers, editors and graphic artists in a multimedia post-production facility especially set up for this purpose in Indonesia Movieland, Jababeka, the author and creator of the project, Dr. Titus Leber, supervises the smallest details of this incredibly complex production: the editing of over 40,000 still pictures, some 80 hours of video footage, and some 120,000 digital files, all of which were created over a period of two years, into narrative sequences which will make the stone characters depicted on the Borobudur virtually alive. The programming of some 400 QTVR (virtual reality) panorama shots give fu-

The Author: Dr. Titus Leber. Translating storyboard into animation

ture users of the program random instant access to any part of the temple; additional sophisticated 3D animation sequences; and the integration of a lavish soundtrack composed by internationally-known film composer Bruno Brugnano.

The objective of this ambitious enterprise is to make the rich symbolism of the Borobudur´s architecture and narrative content of its over 1,400 bas-reliefs ac-

cessible for a worldwide audience through all forms of digital media, from Iphones and IPads to Blu-Ray discs and a 20-part mini TV series, and to make people all over the world appreciate the rich messages encoded in this ancient building, depicting the quintessence of Buddhist teaching under its various aspects.

Dr. Leber, a multiple award winning film director trained in Hollywood´s American Film In-

Dancing scene at Siddhartha’s court

stitute (AFI) and at MIT´s Center for Advanced Visual Studies, has rich experience in this field: since the late eighties, when digital media such as CD ROM or DVD did not even existed, and when the Internet had barely begun to make its appearance, he pioneered large scale, highly in-

teractive multimedia projects, such as the in-depth virtual visit of his hometown Vienna/Austria, the life and works of W.A. Mozart and a 3D visit of the Louvre Museum in Paris. An exploration of the world of Louis Pasteur earned him an award for best scientific CD ROM of the year. Late-

ly, Dr. Leber, whose works have been translated into 11 languages, spent several years to create a comprehensive interactive exploration of the life and teachings of Lord Buddha, commissioned by the Mae Fah Luang Foundation under the royal patronage of the government of Thailand. The lat-

“What fascinates me,” explains the author, “is the way in which our ancestors had managed to express complex philosophical and spiritual content through visuals, very much in the same way we do it today with our digital imagery, with the only difference that they expressed themselves in stone, while we do it in pixels.

“I see my role in translating these ancient messages of wisdom and compassion, so crucially important for our time, into the modern message of multimedia so that anyone anywhere in the world can appreciate it easily. Our ambition is to integrate the ancient, poetic shapes by which ancient sculptors immortalized man´s closeness to the divine into a form of new, unique mental images which are able to convey emotionally and intellectually this message of eternal wisdom.”

The President Post

A8 December 12, 2011

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Economic Highlights 2011: Inflation Better, but International Trade Slowing in November

By Anton Hendranata and Anton Gunawan

Despite, the continuing EU’s debt and banking crises and the long-term fiscal outlook problems in the US, the rating upgrade (to investment grade) by two other major rating agencies (S&P’s and Moody’s) may give a positive push for the Indonesia’s financial (stocks, bonds and currency) markets.

D

ecember CPI headline inflation was announced at 0.57% mom or 3.79% yoy, which is higher than our forecast, but lower than consensus. Similar with the previous month’s inflation, this December inflation was driven mostly by some raw food price increases (especially: rice and chili).

The rise of rice price seasonally happens in December when production declines. It seems that Bulog did not do much market rice intervention in December, despite the fact that their rice stock is relatively high at 1.7 million tonnes (Kontan, 22 December 2011), so that food inflation pressure was bigger than the previous month.

Meanwhile, monthly core inflation rate slowed moderately to 0.28% mom in December, thus the YoY core inflation declined slightly to 4.34% vs 4.44% in November due to a high base effect.

The holiday season effect was relatively small to the inflation rate in the month of December, as transport services and recreation prices only increased slightly. However, the significant decline in the price of gold jewelries reduced the pressure on core inflation.

Overall, the 2011 inflation rate looks better than everybody’s expectation, including Bank Indonesia and the government’s; slightly outside the range of the inflation target (4% - 6%). Food (raw and processed) inflation continue to become the main contributors of inflation in 2011, at around 43% of the total headline inflation, and housing inflation comes next at 21.6%, while surprisingly clothing (gold included) inflation was at only 12.9%.

oil and products increased significantly by $0.87bn. Exports values of coal was relatively stable, despite the rather sharp decline in other non-oil & gas commodities exports.

Trade Highlights: “Slowing November International Trade”

The decrease in total imports value was caused by 2.5% mom decrease in the non-oil & gas imports, while oil & gas imports increased by 5.18% mom. A rather big rise in the imports of cereals (mostly rice, by 12.9% mom) reflected the government intention to stabilize the economy by lowering down the inflationary pressures during the seasonally low production of rice.

This slight decrease in exports value was due to a slight decline in the values of non-oil & gas exports, by $0.16bn or 1,1% mom.

Meanwhile, the oil & gas exports values increased slightly (by +4.0% mom) despite the fact that oil prices declined in November.

Overall, up to November, trade surplus in 2011 has increased to $25.1bn vs $18.4bn in 2010 with increasing share of oil & gas contribution, as oil & gas trade surplus share has risen to 2.39% (2011) vs 0.06% (2010) or in terms of value it was up $0.6bn vs $0.01bn (2010).

Separately, the state-run statistics agency (BPS) also released international trade data for the month of November, showing that there was slight monthly declines in exports (-0.20% mom) and imports (-0.88% mom). This resulted in a small increase of trade surplus in November to $1.53bn from $1.42bn in October.

In line with the increase of palm oil prices, exports values of palm

Despite a significant slowdown of EU’s economic growth in the 2H11, Indonesia’s non oil & gas exports values to EU increased significantly (by $0.14bn). However, Indonesia’s non-oil & gas values to ASEAN and the US declined.

The European Union (EU-27) as

a whole has consistently become a main source of non-oil and gas trade surplus, by 31% of total non-oil & gas trade surplus. On the other hand, Indonesia’s non oil & gas trade deficit with China remains big, at $3.7bn in the first eleven months of the year.

Policy Implications: “Expect 50bps Rate Cut This Year”

We expect Bank Indonesia to cut its policy rate by 50bps to 5.50% this year (most probably in 1H12), as the current and future headline and core inflation still looks relatively benign, although the timing of the cuts (twice) still looks uncertain. BI seems to focus more on supporting economic growth to anticipate global economic slowdown, reducing their costs of monetary operations, and improving intermediary function of the banking sector.

We think that either January or February would probably be the best time for BI to cut the rate by 25bps when the pressure of non-core inflation (which may have influenced the rising consumer expectations) will not be as big as in March and April, when the government will raise the electricity price rate and start to implement the subsidized fuel rationing program. The govern-

ment seems ready to tackle the problem of food price (especially rice price) inflation, by raising the stock of rice at Bulog. On the other hand, we have to be a little cautious to the inflation pressure coming from processed food, as the Ministry of Finance just removed the tax exemption on several raw materials importation, including wheat and flour.

Despite, the continuing EU’s debt and banking crises and the long-term fiscal outlook problems in the US, the rating upgrade (to investment grade) by two other major rating agencies (S&P’s and Moody’s) may give a positive push for the Indonesia’s financial (stocks, bonds and currency) markets. A combination of a rating upgrade by Moody’s (expected to be released in January) and relatively calm Euro area driven world financial markets, may trigger a relatively sizable January effect to happen, and thus a 25bps rate cut to be done by BI. Overall this year, financial markets may have been very volatile and investors may become more risk aversed due to EU’s debt and banking sector problems. However, we expect IDR/ USD appreciate slightly to 8,950 at year-end (2012) from 9,068 in the previous year.

Overall this year, financial markets may have been very volatile and investors may become more risk aversed due to EU’s debt and banking sector problems.

However, we expect IDR/USD appreciate slightly to 8,950 at year-end (2012) from 9,068 in the previous year.

Business

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B

BUSINESS BRIEFS Mandiri Channels Rp36t Credits to Palm Oil Sector State-owned Bank in the nine months September channeled trillion in loans to the sector, up 20% from

Mandiri through Rp36.16 palm oil Rp30.16

trillion in the same period last year.

“Bank Mandiri is looking forward to giving positive contributions to the development of the plantation sector, particularly the palm oil industry including derivative products,” the bank`s executive vice president for corporate banking Rafjon Yahya said here on Sunday.

He said the well-planned and efficient development of the national palm oil industry would make it strong and sound.

Bank Mandiri had a long history in financing the oil palm plantation.

It started from four legacy banks which eventually merged into Bank Mandiri, he said.

With the long experience, coupled with a good knowledge of the palm oil industry`s characteristics, Bank Mandiri had played a great role in encouraging the development of the palm oil sector, he said.

Krakatau Steel Posts Rp1.04t in Net Profit State steel producer PT Krakatau Steel Tbk (KRAS) in the nine months through September posted a net profit of Rp1.04 trillion, up slightly from the same period last year.

The increase in net profit was fueled by net income which grew 6.67% to Rp12.65 trillion in the year ended September 30, 2011 from Fazwar Bujang PT Krakatau Steel President Director Rp11.87 trillion a year earlier, PT Krakatau Steel President Director Fazwar Bujang said here on Thursday.

He said total operating expenses in the third quarter of 2011 rose to Rp960.59 billion from Rp900.44 billion a quarter earlier. This year the company allocated an estimated Rp3 trillion to Rp5 trillion for capital expenditures including routine investment. The fund originated from banking loans and internal cash.

Telkom Buys Back Shares Worth Rp2 t State telecommunications operator PT Telkom Tbk (TLKM) said it had bought back nearly 30% of its shares held by the public for Rp1.5 trillion to Rp2 trillion.

“The number of shares we have bought back from the public reaches about 30%,” Telkom President Director Rinaldi Firmansyah said here on Thursday night.

The fund represents around 40%percent of Rp5 trillion needed for the share buyback expected to end in June 2012. The company will buy back the shares held by the public through the Indonesia Stock Exchange (BEI) and the New York Stock Exchange (NYSE).

Telkom shareholders have agreed on the planned share buyback with a portion of 3.2%. The share buyback will cost the company an estimated Rp5 trillion. The figure is higher than 2% of shares held by the public as originally planned at a total cost of Rp3 trillion.

The planned share buyback will cover 645,161,290 shares with the price of shares estimated at Rp7,750 each.

MASA Set to Make Rights Issue with 3.06b Shares Publicly-listed tire maker PT Multistrada Arah Sarana (MASA) Tbk said on Tuesday its shareholders had approved the company`s plan to make a rights issue with 3.06 billion shares worth a total of Rp1.53 trillion.

The proceeds of the rights issue will be used to finance the company`s business expansion, MASA President Director Pieter Tanuri said in a press statement.

He said nearly 44% of the funds would be used to buy machines/ production equipment, 26% to develop timber estate including rubber process industry and 30% to strengthen working capital.

“Now was the proper time for the company to make a rights issue particularly after MASA shares had been put on the list of blue chips according to the Morgan Stanley Composite Index (MSCI) for Small Caps since November 15, 2011”, he said.

Every old shareholder who is put on the company`s list of shareholders and holds two shares as of 04.00 p.m. on December 29, 2011 is entitled to receive preemptive rights to buy one new share for Rp500.

MASA is a motor vehicle tire producer with an annual production capacity of 7 million units of car tires and 4.7 million units of motorcycle tire.

RISING GAS NEEDS. Domestic demand for gas is expected to rise in 2012 due to the government policy to convert use of oil fuel to gas. While the country produces abundant gas, most of it are exported as overseas prices are better than domestic prices.

The President Post/Nandi Nanti

Wanandi Slams Demonstrators as Threat to Investment www.kppu.go.id

Sofyan Wanandi, the chief of the Association of Indonesian Employers (Apindo), said Indonesia`s image as an investment destination would be compromised and damaged if demonstrations against private investment by some groups were allowed to continue.

A

business leader expressed concern here on Tuesday over demonstrations against investment, saying that unless they were stopped they could erode the country`s image as an attractive and secure foreign investment destination.

Sofyan Wanandi, the chief of the Association of Indonesian Employers (Apindo), said Indonesia`s image as an investment destination would be compromised and damaged if demonstrations against private investment by some groups were allowed to continue.

He called on the police and other agencies concerned to take the necessary measures to curb the

Chief of the Association of Indonesian Employers (Apindo) Sofyan Wanandi

anti-investment activism. He added too many demonstrations had happened, creating the impression as if the people were being oppressed while in reality the rallies were just expressions of anarchism.

“They want to present themselves as heroic fighters for humanitarian causes while in fact they are mere anarchists,” he said.

A group of people from the Communication Forum of Pulau Padang Community (FKMP3) have

in the past few days demonstrated at the parliament building to protest against the foreign minister`s decision on industrial forest development in Pulau Padang, Riau.

Some of the demonstrators had sewn their mouths to dramatize their protest.

Sofyan said actually the public was not impressed by such actions because it was understood that the demonstrators were paid by certain quarters. “I understand the game well because I used to lead thousands of demonstra-

tors,” he said. He said businessmen in principle could no longer be influenced by such actions.

tors are mere pawns who are sacrificed by certain groups who have bigger interests,” he said.

House Commission IV deputy chairman Firman Subagio said he would protect the traditional community members who had documents and evidence showing that their land had been grabbed.

“We will protect traditional community members whose lands were taken by private investors.

But if the situation is the other way round, meaning they are the ones who had grabbed the land, they must be given harsh sanctions,” he said.

Nanang said a Industrial Forest Concession (HTI) given to a company is actually a permit for leasing state land but some people claim the land is theirs. “Worse still is people seem to be on the losing side while the fact is they are the encroachers,” he said.

He said the forestry ministry may not issue licenses at will without recommendations from the regional governments. “We however will still ask for an explanation from the parties concerned and hope the demonstrators will introspect,” he said. Firman also asked all parties to introspect to settle the alleged grabbing of land in Pulau Padang.

The executive director of the Association of Indonesian Forestry Businessmen (APHI), Nanang Rohandi, said there were a lot of cases in the forestry industry and a lot of demonstrators did not understand what they actually were demanding. “Usually demonstra-

Commission II chairman of the legislative assembly of Meranti Islands, Riau, Ruby Handoko, said the action has actually been done several times in various occasions in Riau but it has never been supported by the people. “They do not have legal evidence to support their demand and have only forced their will,” he said. Ruby suspected the action against the development of industrial forests by the Riau Andalan Pulp and Paper (RAPP) in Pulau Padang was used by certain parties.

Teguh, a youth leader in Pulau Padang said those who reject RAPP number only 540 out of 35,975,00 people of Pulau Padang.

“And they are all newcomers. A check could be made on their IDs showing that most of them came from Java Island. They have given no real contribution to the development here,” he said.

The President Post

B2 December 12, 2011

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Business Toyota Indonesia Sales To Exceed Thailand’s www.vibizdaily.com

The sales in Indonesia will exceed that in Thailand because that country is being hit by a flood disaster

T

oyota sales in Indonesia is expected to exceed that in Thailand following the flood disaster that hit the country of late, a Toyota executive said.

“We have predicted that the sales up to December 2011 will reach 310 thousand units,” President Director of PT Toyota Astra Motor (TAM) Johnny Darmawan said here on Saturday.

With that figure, the Toyota sales in Indonesia could exceed that in Thailand, a county where Toyota sales so far is the biggest

President Director of PT Toyota Astra Motor (TAM) Johnny Darmawan in Southeast Asia. “It is likely that the sales in Indonesia will exceed that in Thailand because that country is being hit by a flood disaster,” Johnny said.

Based on data at the Indonesian Motor Vehicle Industry Association (Gaikindo), Toyota sales up to November this year has reached 285,034 units, exceeding

the 2010 figure of 280,989 units.

He predicted that the sales in December would be better than that in November which reached 15,256 in line with spare parts stock recovery and import from Thailand. “The impact of the sales in Thailand turned out to be bigger than that of the earthquake and tsunami in Japan,” he said.

Waskita to Issue Bonds Worth Rp750b in 2012 State construction firm PT Waskita Karya plans to issue rupiah-denominated bonds of Rp750 billion in the second quarter of 2012 to restructure its debts.

“True, the bonds will serve as our starting point to be able to conduct IPO (initial public offering),” Waskita Karya President Director M. Choliq said on the sidelines of a coordination meeting of the State Enterprises Ministry at the Pertamina Head Office here on Monday.

He said local credit rating agency PT Pefindo was in the process

M. Choliq Waskita Karya President Director of rating the bonds. The company would later explore the possibility of signing a contract with bond issue underwriters.

“If the bonds receive adequate rating from the rating agency, we will sound out (the plan to issue the bonds) to the market,” he said.

He said proceeds from the issuance of the bonds would be used to restructure the company`s debts.

Waskita Karya has set the target of its net profit for 2012 at Rp200 billion, a 25% increase compared with the target for 2011. The company also has set the target of its income for 2012 at Rp9 trillion, up

by Rp2 trillion from the target of Rp7 billion for this year.

RICE PRODUCTION. The government has set a production target of 74 million tons in 2012, 3.5 million tons of which come from local farmers.

The President Post/Nandi Nanti

BEI Upbeat on 25 Share Issuers in 2012 The Indonesian Stock Exchange (BEI) is optimistic that it will achieve its target to have 25 companies floating their shares through the initial public offering (IPO) mechanism in 2012.

“At present, we acknowledge that only 22 new share issuers have been recorded.

We have another one which will soon be on listing namely Pt Erajaya Swasembada,” Eddy Sugito, BEI director for assessment and stock-staking affairs, said during the share listing of PT ABM In-

vestama (ABMM) on Tuesday.

He said that actually there were two other firms which had been ready to go IPO at the end of this year. Information on their plans to float shares could be obtained from the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) in the coming two weeks.

“We can still expect that they are listing this year. If that happen, our target to have 25 issuers this year could be achieved,” he said.

He said that two companies which were ready to list their

shares to the stock exchange were PT Saranacentral Bajatama and PT Greenwood Sejahtera. Since early this year, 22 firms have been listed to go IPO in the stock exchange, and PT ABM Investma was the 22nd to be listed.

In the first trade, ABM Investama was able to raise the price of its share to the Rp4,100 position with a transaction volume of 2,557 shares worth Rp6.72 billion. The company floated a total of 55,633,000 shares (20%) to the public at a price of Rp3,750 per share with total IPO value of

Rp2.065 billion.

Of the funds obtained through the IPO, 70 percent will be used for business expansion, 24% for mining acquisition debt financing and the remaining one is for working capital.

ABM Investama Strategic Director Yovie Priadi said his company had set a net profit growth target this year of 359-400%. The growth was expected to be boosted by the company`s income which increase by about 40 to 50%.

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December 12, 2011 B3

Investment Pertamina Set to Invest Rp52.8t Pertamina has set the target of net profit for 2012 at Rp23.5 trillion, up 32% from the net profit forecast of Rp20.7 trillion for this year.

PT Pertamina will invest Rp52.8 trillion which will be divided into 80% for upstream and 20% for downstream projects.

“The projects are part of the MP3EI (master plan for acceleration and expansion of Indonesian economic development) projects for supporting energy infrastructure development across Indonesia,” Pertamina president director Karen Agustiawan said here on Monday.

She said several of the projects include a Floating Storage Regassification Unit (FSRU) in West Java which is expected to start operating in April 2012 with a capacity of three million metric tons a year or 400 million cubic feet per day (MMSCFD).

Another project is the Residual Fluid Catalytic Cracking (RFCC) Refinery in Cilacap, Central Java, that will increase the capacity of the refinery to 411,000 barrels a day.

Pertamina together with ExxonMobil has also carried out the development of a production facility in Cepu Block which is expected to be operational in 2014 with a production capacity of 165,000 barrels of oil per day (BOPD).

Pertamina has set a sales target of 596,000 kilo liters in 2012 which is increasing by 5.4% compared to the 2011 sales prognosis that reached 565,430 kilo liters.

ident Director Karen Agustiawan said here on Monday following a general meeting of the company`s shareholders discussing its business plan for 2012.

“We will be more optimistic in 2012,” she said.

Karen Agustiawan Pertamina president director

The sales prognosis for 2011 is an increase of 13% compared to the 2010 sales and part of it is contribution from a rise in Pertamina exports of lubricating oils.

The sales of Non-PSO retail fuel oils in 2012 is expected to reach 1.7 million kilo liters or to increase by 21% compared to the sales prognosis of 2011 at 1.4 million kilo liters.

Pertamina aims for Rp23t profit in 2012

Pertamina has set the target of net profit for 2012 at Rp23.5 trillion, up 32% from the net profit forecast of Rp20.7 trillion for this year. The 2011 net profit forecast of Rp20.7 trillion represented 116.9% of the target of Rp17.7 trillion for that year, Pertamina Pres-

Although Pertamina suffered losses of Rp640 billion from the sale of subsidized fuel oils and Rp4.9 trillion from the sale of nonsubsidized liquefied petroleum gas (LPG), this year the 2011 profit prognosis rose 23.4% to Rp16.78 trillion the year before, she said.

Pertamina has set the target of operating income for 2012 at Rp527 trillion, a 15.6% increase from Rp456.5 trillion in 2010, she said.

She further said the company`s oil and gas production in 2012 was projected to reach 532.7 thousand barrels consisting of 244 thousand barrels per day and gas production 1,672 million metric standard cubic feet per day (mmscfd).

The 2012 oil and gas production target represented a 14.5% increase compared to the target of 465.3 thousand barrels per day, an equivalent of 196.8 thousand barrels of oils per day. The figures accounted for 103% of oil production for 2010 or 107 percent increase compared with the gas production of 1,555 mmscfd for this year.

Solo Gets 19 Applications for Building Star-rated Hotels The Solo city administration has since early this year received 19 applications for new permits to build star-rated hotels worth trillions of rupiahs, its mayor said.

“I don`t know the exact amount of the investment. But in total, the investment may reach trillions of rupiahs. One of the hotels to be built will be a five-star hotel consisting of 25 floors. We only allow investors to build at least two-star hotels in Solo,” Joko Widodo said here on Tuesday.

have asked them to build the hotels shortly after receiving the building construction permits,” he said.

Solo mayor Joko Widodo

He expressed hope the construction of the new hotels would boost the economies of the city and environs. “We are convinced that the presence of the hotels will increase money supply in Solo and give greater benefit to all layers of the community than the presence of a mall,” he said.

He said the city administration had issued building construction permits to 17 of the 19 investors, while the other two investors still had to complete their applications. “So the two investors` applications for new permits are not rejected but they still lack require-

ments. We are waiting for the investors to complete the applications soon,” he said.

He said the investors who had secured building construction permits would start constructing the hotels in 2012. “True, we

He said since he was elected Solo mayor he had only issued a permit for the construction of a mall. The mall was related to the construction of apartment. “It is not me but my predecessor who issued permits for the construction of the existing malls,” he said.

LOW ELECTRICITY CONSUMPTION. The National Energy Council (DEN) disclosed that Indonesia’s electricity consumption is among the lowest in ASEAN, with Brunei Darussalam at the top (8,308KWh per capita) followed by Singapore (8,185Kwh), Malaysia (3,490 KWh), Thailand (2,079Kwh) and Vietnam (799KWh). The figures for Indonesia are about 591KWh, above the Philippines, Myanmar and Cambodia.

The President Post/Nandi Nanti

Investment Grade Status Boosts Govt Confidence Chief economic minister Hatta Rajasa welcomed the raising of Indonesia`s debt rating to an investment grade by Fitch ratings agency saying it had boosted the government`s confidence.

“Our optimism for 2012 is increasing because we initially thought it would be achieved in 2012, not this year, so that the 2012 outlook will change, more confident, better as certain coun-

tries would use it as a reference for their investment,” he said at his office here on Friday.

He said with the new rating Indonesia would certainly become the destination of investors and so more capital would come into the country. He said people need not worry about the capital inflows because the government would manage them well.

“What is dangerous is if no capital inflow happens. So, we will manage them. We must be opti-

mistic,” he said. He said the capital inflows had been more positive meaning more of them had gone to foreign direct investment (FDI) and less to portfolios.

“In 2011 the FDI has risen sharply to US$18-19 billion from merely $12-13 billion in 2010. Investment in portfolios has dropped and shifted to FDI. The funds that go to MP3EI projects are clear,” he said.

Hatta hoped in 2012 oth-

er ratings agencies such as Moody`s would follow suit.

“Moody`s is ready, perhaps next year (to raise Indonesia`s debt rating),” he said.

Fitch ratings agency has raised Indonesia`s long term foreign and local currency issuer default rating (IDR) from BB+ to BBB- with a stable outlook. The agency says with the new rating Indonesia had attained investment grade status.

B4 December 12, 2011

The President Post

Pictorial Events

Dino Patti Djalal Launches Book on SBY’s Speeches D

ino Patti Djalal, Ambassador of Indonesia to the United States, has launched a book containing President Susilo Bambang Yudhoyono’s (SBY) international speeches entitled “The Transformational Decade”.

This book contains 16 speeches of SBY, including at Harvard University in the U.S. and the World Economic Forum 2011in Davos, Switzerland.

Attending the book launch were Cabinet ministers and business leaders, among others Taufiq Kiemas, Chairul Tanjung, MS Hidayat, Mohammad Nuh, Franky Wijaya, Emirsyah Satar, Dien Syamsudin, Peter F. Gontha and others.

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December 12, 2011 B5

Pictorial Events

Vice President Spends Holiday at Tanjung Lesung

PATA Indonesia and PATA Japan Coop

Vice Presdent Boediono and his family spent a three-day holiday (Dec 24-26, 2011) at the Tanjung Lesung resort, Banten, west Java, admiring its potentials as a major tourist destination.

Chairman of PATA Indonesia SD Darmono and PATA Japan have agreed to promote tourism in both countries.

Back (left to right): Rick Vogel (President PATA Japan Chapter), Shigeo Adachi (Director of Toptour Corporation), Takako Koseki (Secretary General).

Front (left to right): T. Arimoto, SD Darmono (PATA Indonesia Chairman), Marlin Marpaung.

Garuda Indonesia, BNI Joint Promotion Garuda Indonesia President Director Emirsyah Satar, accompanied

by HR Director Arif Wibowo, signed an MOU on cooperation of super premium services and joint promotions with BNI President Director Gatot M. Suwondo, who was accompanied by Consumer and Retail Director Darmadi Sutanto at Wisma BNI 46, Jakarta.

Economic Update The Financial Club and The President Post held a Breakfast Dialogue themed “Navigating Turbulence, Sustaining Growth: The World Bank’s East Asia Pacific Economic Update” with Ekaterina Vostroknutova, Senior Economist World Bank for East Asia Pacific, as speaker.

CEO Business Forum of Automotive Industry

USAID Event The U.S. Embassy in Jakarta held Forum Jaringan Kemitraan Universitas (University Partnership Network Forum) to discuss activities of the U.S. Agency for International Development in education and to promote partnerships among high education institutions.

Established in 20019, the USAID program has provided grants to 11 universities in Indonesia and six in the U.S.

PT Jababeka Tbk, held an event themed “Indonesian Automotive Industry-Current and Future Growth by Identifyng Market Opportunities and Explore Demand” at President Executive Club, in Kota Jababeka, Cikarang. The event featured A.K Hadi, Director of PT. Astra Otoparts Tbk and James Gwee, author of a bestseller book, and it was attended by businessmen such as Paul Prieston and Suteja Sidarta.

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B6 December 12, 2011

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Executive Highlights BI left its benchmark rate unchanged at 6% this December BANK INDONESIA (BI) LEFT ITS BENCHMARK RATE UNCHANGED AT 6% THIS DECEMBER. The decision comes following rate cuts totaling 75 basis points combined in October and November to anticipate weakening economic growth next year.

The bank said inflation pressures were moderating in the near and mid-term. It noted that despite the rise in the price of rice, the price of food staples such as chili and poultry were on the decline, while the price of administered prices remained relatively stable. With inflation easing to 4.2% y-o-y in November from 4.4% a month earlier, inflation expectations trending down and global commodity prices on the decline, BI is projecting 2011 full year inflation to fall below 4% to a multiyear low. The bank is forecasting 2012 inflation of 3.5-5.5%. On economic growth, BI is projecting 2011 full year GDP expansion of 6.5%. The bank said economic prospects remained solid despite global uncertainties on the back of strong domestic demand. However, the bank lowered its growth forecast for 2012 to 6.3-6.7% from 6.5-6.7% due to slower global economic growth.

Minister for Development Planning Armida Alisjahbana expressed confidence the longawaited land clearing law would be passed this month MINISTER FOR DEVELOPMENT PLANNING ARMIDA ALISJAHBANA EXPRESSED CONFIDENCE THE LONG-AWAITED LAND CLEARING LAW WOULD BE PASSED THIS MONTH. She said the government’s working committee with parliament has finalized most elements of the legislation. The minister added that the government has already drafted key implementing regulations for the law, which she said would allow the law to go into effect at the start of next year. Indonesian laws often don’t go into effect until months and sometimes years after passage because of the time spent on drafting the implementing regulations. The law aims to provide regulatory certainty and expedite the land acquisition process for public infrastructure projects, which includes toll roads, railways, airports as well as refineries, power plants and telecommunication facilities. Armida expressed confidence more projects under the government’s public-private partnership (PPP) initiative and the broader development master plan (MP3EI) would be able to move forward once the land clearing law is passed.

Boeing has secured a preliminary agreement to sell 230 aircraft to local low cost budget carrier Lion Air at a list price totaling US$21.7 billion BOEING HAS SECURED A PRELIMINARY AGREEMENT TO SELL 230 AIRCRAFT TO LOCAL LOW COST BUDGET CARRIER LION AIR AT A LIST PRICE TOTALING US$21.7 BILLION. The deal also includes options for another 150 aircraft valued at US$14 billion. It is the largest single aviation sale ever for the U.S. plane maker both in terms of value and number of planes. The deal was personally announced by U.S. President Barack Obama during the summit of East Asia nations in Bali recently. It includes an order for 201 of Boeing’s 737 MAX single-aisle jets and 29 of its extended range 737-900ERs. Lion Air president director Rusdy Kirana said the deal would help the airliner meet passenger growth and allow it to implement its expansion plans over the long-term.

The firm currently operates 92 planes with a load factor of more than 80%. Lion Air also has an earlier deal with Boeing, signed in

2008, for 178 737-900s to be delivered in stages by 2016. The latest purchase, meanwhile, calls for delivery of the planes from 20172025.

Public Works Minister Djoko Kirmanto said the government has recently issued key regulations to fast track construction of the Rp100 trillion Sunda Strait bridge PUBLIC WORKS MINISTER DJOKO KIRMANTO SAID THE GOVERNMENT HAS RECENTLY ISSUED KEY REGULATIONS TO FAST TRACK CONSTRUCTION OF THE RP100 TRILLION SUNDA STRAIT BRIDGE. The bridge is slated to be the world’s longest suspension bridge, spanning the 26-km Sunda Strait linking Java and Sumatra. The government regulations calls for an inter-departmental team to be set up together with representatives from the Lampung and Banten provincial governments to provide a detailed plan for the bridge design and structure. The government regulations also call for an environmental assessment and regional planning work to support the bridge’s development. Djoko said the he hoped construction could begin in 2014 once the necessary studies and tenders have been conducted, with commercial operations targeted for 2025. It is not clear who will construct and operate the bridge, though Djoko said he expected significant private sector participation. The government envisions a bridge carrying a six lane highway, bus lanes and a double track railway to significantly reduce travelling time between the country’s two largest islands.

which was essential for the project to move forward. The toll road is scheduled to start commercial operations in 2014. Muhammad said the Cikampek-Palimanan project was a crucial component of the trans-Java toll road and would help improve the distribution of goods from western Java to eastern Java and vice versa. The project will be 30% funded by equity and the remainder by bank loans. Lintas Marga Sedaya has a 35-year concession to operate the toll road. The firm is 55% owned

by Malaysia’s Plus Expressways Berhad and 45% owned by local firm Baskhara Utama Sedaya.

and half the yield of the government’s previous Islamic bond deal in 2009. It reflects investor confidence in Indonesia’s economic outlook and prospects for the country to receive an investment grade rating within the next 12 months.

The top rating agencies Standard & Poor’s, Moody’s and Fitch all have Indonesia’s sovereign credit rating at one level below investment grade. Rahmat Waluyanto, director general for debt management, expects an upgrade in the first half of next year. The latest deal, managed by HSBC, Citigroup and Standard Chartered, was more than six times oversubscribed. Investors from Asia purchased 32% of the issue, the Middle East 30%, Europe 18% and the U.S. 8%. Domestic investors purchased the remaining 12%.

The government raised US$1 billion in its recent sale of islamic bonds

State power utility PLN has raised US$1 billion in its recent 10- Toyota announced year bond offering plans to build STATE POWER UTILITY PLN a second HAS RAISED US$1 BILLION IN manufacturing facility ITS RECENT 10-YEAR BOND OFin Indonesia worth US$384 million

THE GOVERNMENT RAISED US$1 BILLION IN ITS RECENT SALE OF ISLAMIC BONDS. Despite global financial uncertainties, the seven-year bonds were sold at a yield of 4%. This is around 2% lower than a similar bond sale by Italy recently,

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BHP has started work on its US$1.3 billion Indomet Coal project in Kalimantan BHP HAS STARTED WORK ON ITS US$1.3 BILLION INDOMET COAL PROJECT IN KALIMANTAN. The project is one of the largest green field coal deposits in the world. It comprises seven coal contracts of work (CCoWs) in Central and East Kalimantan, and has reserves estimated at more than 770 million tons of metallurgical and thermal coal. The project is a joint-venture with local miner Adaro Energy. BHP said access roads, water dams, administrative buildings and other supporting infrastructure would be constructed this quarter, followed by the mine’s development.

Development costs are estimated at up to US$2 billion. The project is slated to produce five million tons of coal per year by 2017, with further expansion potentially raising output to 10 million tons per year.

Indomet was initially scheduled for production in 2009, but was put on hold by BHP. Development was resumed following Adaro Energy’s purchase of a 25% stake in the project in March 2010. The decision to move forward with Indomet comes despite the regulatory risks and mounting labor challenges in Indonesia’s mining sector, highlighting the project’s value.

Lintas Marga Sedaya has begun construction of the Rp12.5 trillion, 116-km CikampekPalimanan toll road in West Java LINTAS MARGA SEDAYA HAS BEGUN CONSTRUCTION OF THE RP12.5 TRILLION, 116-KM CIKAMPEK-PALIMANAN TOLL ROAD IN WEST JAVA. Company president director Muhammad Fadzil said the project’s implementation after several years of delays reflected the success of the government’s public-private partnership (PPP) initiative. He acknowledged the government’s key role in acquiring more than 90% of the land needed for the toll road,

FERING. The bonds were sold at a yield of 5.5%. The issue is part of the firm’s US$2 billion global medium-term notes (GMTN) program it is currently implementing to secure funds to increase generation capacity under its phase I and II acceleration program. The deal, managed by Barclays and Citigroup, was more than five times oversubscribed, highlighting strong investor interest in PLN debt. International ratings agency Fitch assigned a BB+ rating to the bonds, which it said reflected the strong support PLN received from the government in the form of subsidies, public service obligation margins, and state guarantees for certain bank loans. Geographically, the bonds were 44% allocated to Asian investors, 35% to the U.S. and 21% to Europe.

Around 64% were sold to investment funds, 19% to insurance and pension funds and the remainder to banks.

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AUTOMAKER TOYOTA ANNOUNCED PLANS TO BUILD A SECOND MANUFACTURING FACILITY IN INDONESIA WORTH US$384 MILLION TO BOOST CAR PRODUCTION. The new plant will have a production capacity of 70,000 units per year and be operated by company subsidiary Toyota Motor Manufacturing Indonesia. The new plant will be built adjacent to the existing facility, which has a production capacity of 110,000 units and is located at Karawang, West Java. The new plant is scheduled to start commercial operations by 2013 and will be used to produce new models Toyota plans to introduce to Indonesian consumers.

The new models will include a multipurpose vehicle and a compact sedan for use in urban areas.

Toyota currently dominates Indonesia’s automobile market with a 36% share. Domestic car sales for the January-October period totaled 746,200 units, with Toyota vehicles accounting for 269,700 units.

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SPEED FIBER OPTIC NETWORK OVER THE NEXT FOUR YEARS. Company president director Rinaldi Firmansyah said the firm aimed to have 13 million homes passed with true broadband access of 20-100 Mbps by 2015.

The project is part of Telkom’s keystone “Nusantara Super Highway” built around fiber optic technology, comprising six rings covering Sumatra, Java, Kalimantan, Sulawesi, Bali and Nusa Tenggara as well as Maluku and Papua. Rinaldi said the project underscored Telkom’s new strategic emphasis towards data-based telecom, information, media and edutainment (TIME) services and away from its current fixed, mobile and multimedia (FMM) portfolio. He said the contribution of the firm’s TIME services was projected rise to 15% of total company revenues by 2015 from 9% currently.

Coal miner ABM Investama raised Rp2 trillion in its recent initial public offering COAL MINER ABM INVESTAMA RAISED RP2 TRILLION IN ITS RECENT INITIAL PUBLIC OFFERING. The firm floated 20% of its shares in the third largest public offering this year. The offering was oversubscribed four times despite current uncertainties in the local financial markets. Morgan Stanley, Macquarie Group and Mandiri Sekuritas helped manage the deal. Company director Andi Djajanegara said around two-thirds of the proceeds would be used to fund expansion, with the remainder to be used to refinance debt. The miner is projected to produce three million tons of coal this year, and is looking to boost coal production to 10 million tons per year by 2015. The firm has coal reserves estimated at more than 220 million tons in concession areas in South Kalimantan and Aceh. It reported revenues and net profits of Rp2.8 trillion and Rp208 billion respectively for the January-July period.

ABM Investama is a subsidiary of Achmad Hamami’s Tiara Marga Trakindo Group.

Chandra Asri Petrochemical has secured a US$150 million loan from a bank syndicate to support its expansion plans CHANDRA ASRI PETROCHEMICAL HAS SECURED A US$150 MILLION LOAN FROM A BANK SYNDICATE TO SUPPORT ITS EXPANSION PLANS. Members of the syndicate included DBS

Bank, Bank Danamon, Bank DBS Indonesia, Standard Chartered Bank and HSBC. Chandra Asri corporate secretary Suryandi said the funds would be used to finance ongoing capital expenditures. The firm currently has an annual production capacity of 600,000 tons of ethylene, 320,000 tons each of propylene and polyethylene, 480,000 tons of polypropylene and 340,000 tons of styrene monomer. It is currently implementing plans to double the production capacity of its petrochemicals over the next several years to meet growing industrial demand in Indonesia. Chandra Asri is 65% owned by Barito Pacific, 30% by Thailand conglomerate SCG Chemicals and 5% by the public. SCG Chemicals acquired its stake earlier this September from Singapore’s Temasek and Barito.

The energy ministry awarded a series of oil, gas and coalbed methane blocks in its latest tender THE ENERGY MINISTRY AWARDED A SERIES OF OIL, GAS AND COALBED METHANE BLOCKS IN ITS LATEST TENDER. The blocks included the West Aru I and II offshore projects awarded to BP; the Timor Sea I offshore project awarded to Hess Corp.; the Babar Selaru offshore project awarded to Inpex; the Halmahera II project – a frontier basin in eastern Indonesia – awarded to Niko Resources and Statoil; and the Tanjung Aru offshore project awarded to Serica Energy; Neon Energy and Natuna Ventures. Other onshore blocks in Sumatra and Kalimantan were awarded to local companies including Terra Global Vestal, Mentari Abdi Pertiwi and Anugerah Mutiara Sentosa. The ministry, meanwhile, awarded seven coalbed methane blocks in Kalimantan to local contractors Sugico Graha, Sumber Daya Energi and Citra Pita Niagatama. Director general for oil and gas Evita Legowo said investment commitments for three years of initial exploration for the blocks awarded totaled US$65 million.

Business Highlights are contributed to The President Post by CASTLEASIA/PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program. They are reprinted here with permission. For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@castleasia.com subject CEO Forum

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December 12, 2011 B7

Property As Economy Strengthens, Property Market Enjoys Boom in 2011 During the 4th quarter, several new international fashion brands opened their first stores in Jakarta, including Staccato and Mango Touch in Pondok Indah Mall, and New Look in Central Park. New openings by anchors and larger tenants were seen in the nearly completed Kuningan City, including LotteMart, Best Denki, Cinema XXI, and the Kawan Lama group.

I

www.kuningancity.com

ndonesia’s economy has continued to strengthen in 2011 and full year GDP growth is expected to reach 6.5% (from 6.0% in 2010). Other general economic indicators also showed very positive trends during the year, with inflation within government targets and a relatively stable currency exchange rate. Annual inflation for 2011 is expected to be below 5%, lower than the 6.96% recorded in 2010. The Rupiah exchange rate remained relatively stable at around Rp.9,000 per $1.00, an appreciation of 0.2% over the full year. The stock market also continued its positive performance through the first ten months as evidenced by the composite index which closed at 3,791, an increase of 2.4% over that period.

CBD OFFICE MARKET

Leasing transactions remained active during the fourth quarter but at lower levels than during Q3. Most transactions were expansions by existing tenants resulting from business growth during 2011 and an expectation for this to continue into 2012. Oil & mining related companies, IT, and the banking industry were among the most active sectors for office expansions.

Larger inquiries of between 400 and 1,000 sqm (compared to only 100–300sqm seen earlier in the year) were observed during the last quarter of 2011. This is a positive sign that office demand will likely continue at higher levels in 2012 despite potential slower economic growth due to the treat of a worsening of the Europe economic recession.

Net take-up of 74,700sqm was recorded in the fourth quarter, bringing the cumulative demand to 3.85 million sqm as at December 2011, representing growth of 9.5% YoY. Occupancy levels rose significantly over the year, by 5.5% to 90.7%, with total net take-up of 332,600sqm for the full year, some 63% higher than that recorded in 2010. This net take-up represents the highest annual take-up achieved since the last peak in the office market cycle in 1997.

Throughout 2011, Grade A offices continued to enjoy the largest positive take-up of 251,300sqm or 76% of the total CBD office demand, followed Grade B and C buildings, which saw net take-up of 71,900 sqm (21%) and 9,500sqm

(3%), respectively. By business sector, 2011 demand was largely driven by oil-gas and mining companies, as well as the banking and insurance industries.

will see 18,140 units completed in 2012, assuming no major delivery delays.

INDUSTRIAL ESTATE

Net demand of some 268 Ha of prepared industrial land plots rounded off an extremely strong year for the Greater Jakarta industrial market. These 4Q land sales represented a net demand increase of over 50% QoQ and on a year-on-year basis, the quarterly demand was over 100% higher than the 131 Ha sold in the same quarter last year. Despite this year-end demand surge, the significant amount of new supply entering the market in the last quarter, caused the cumulative sales rate to remain virtually unchanged at 77.6% compared to 77.9% in the previous quarter.

Following the trend of strong performance in industrial land sales, demand for SFB’s & Warehouses for lease was also positive during the review quarter.

The total cumulative supply of the Jakarta office market increased during the fourth quarter of 2011, with the addition of Multivision Tower of 21,000sqm in the Kuningan Persada complex in Jl. H.R Rasuna Said. This brought the total CBD supply to 4.24 million sqm, as at the end of December, an increase of 2.8%, YoY. Office 8 @ Senopati (Jl. Senopati), The H Tower (Jl. HR. Rasuna Said), and SCBD Lot 18 (SCBD, Jl. Jend. Sudirman) are currently in their advanced finishing stage, and will be ready for occupation in the first quarter of 2012. These projects will add approximately 81,200sqm of new office space to the market. In addition, a further 336,300sqm of new supply is expected to be completed by the end of 2012. This future supply will be dominated by Grade-A office buildings, accounting for approximately 93% of the total.

The average gross rental (base rental plus service charge) in Rupiah terms increased by 2.2% over the fourth quarter to Rp.157,500 per sqm per month. In $ terms, this average gross rental increased by 1.1% to $14.95 per sqm per month during the same period. YoY, Rupiah gross rentals increased by 8.6%, whilst in $ terms they increased by 8.1%.

A number of landlords increased their base rental rates during the fourth quarter and others are expected do so during 2012, given the continued positive outlook for the rental office market. Service charge levels are likely to see adjustment in the near term as landlords react to expected government announcements regarding utility cost increments, especially electricity, as well as new Regional Minimum Wage (UMR) levels.

CONDOMINIUM

Greater Jakarta’s condominium sales activity remained stable throughout the 4th quarter of 2011. Both the sales rate of completed projects and pre-sales of future projects increased, by 0.5% and 0.6% over the last quarter.

A significant number of projects totaling approximately 9,800 units were launched to the market during 2011. Some of these were offered with a distinctive

Industrial estates (IE’s) in Bekasi and in the Karawang & Purwakarta areas remained as the preferred locations, enjoying about 84% of total transaction activity in the quarter. Increasing demand was also seen in IE’s in Serang and the Cilegon areas due to relatively higher availability of land stock ready-for-construction in these areas.

With a significant amount of ‘pent-up’ demand awaiting new supply delivery, the overall industrial market in 2012 is expected to remain strong, with continuing upwards pressure on land prices to be expected for the foreseeable future.

RENTAL APARTMENT

KUNINGAN CITY, JAKARTA. 70.5% of new retail supply in 2012 will be dominated by one-stop retail centers within mixed-use developments. concept, such as Kubikahomy with strata title apartment concept as a student dormitory, Sky Terrace with an eco-green lagoon concept, Green Bay Pluit with a green nautical living concept, and Ciputra World 2 (Tower Cedar) with a “walk-to-work” concept, whilst others were offered based on their strategic location and extensive support facilities. At the end of this year, the pre-sales rate of these newly launched projects

reached 41%, with total net takeup of 4,000 units.

For existing low-cost condominiums, the sales rate rose by 1.8% from the 3rd quarter’s figure of 92.5%, an increase of 3.3% over the prior year’s figure of 91.1%. In contrast, the pre-sales rate for this segment fell to 66.7%, a decline of 9.8% over 2010 and 17% below the earlier quarter. This sharp fall was correlated to the completion

of 12 projects and the launching of 6 new projects during 2011.

From a location perspective, most of the existing projects were situated in South Jakarta (28.1% of the total), followed by West Jakarta with 22.6%. For the proposed projects, the majority are also planned to be built in South Jakarta (39.5%), followed by North Jakarta (27.3%).

Looking forward, the Greater Jakarta condominium market

Despite a slight seasonal decline in expatriate tenants during the 4th quarter 2011 due to yearend holidays, the Jakarta rental apartment market ended the year successfully with high levels of leasing activity, evidenced by an increase in the overall occupancy rate within each of the rental apartment sub-sectors during 4Q. The cumulative demand for rental apartments stood at 28,268 units by the end of 2011, representing 7.1% growth from the previous quarter and 10.6% growth on a year-on-year basis. An increase in occupancy levels was seen in each sub-sector of the rental apartment market.

In the year ahead, some 5,400 condominium units are estimated

to be completed in the condominium-for-lease sub-sector, which is expected to trigger tougher competition within the market. In contrast, the serviced apartment and purpose-built apartment sub-sectors will experience slower supply growth.

RETAIL MARKET

It was a very active leasing market throughout the year, especially in the under-construction centers. These pre-commitments did not however, impact on the 2011 annual take-up figures, as this will only be reflected following completion of those centers and the opening of the stores.

During the 4th quarter, several new international fashion brands opened their first stores in Jakarta, including Staccato and Mango Touch in Pondok Indah Mall, and New Look in Central Park. New openings by anchors and larger tenants were seen in the newly completed Kuningan City, including LotteMart, Best Denki, Cinema XXI, and the Kawan Lama group.

As of the end of December 2011, the average occupancy rate of the Jakarta retail market had increased by 1.4% (YoY) and stood at 81.0%, leaving approximately 676,000 sqm of vacant retail space. On a quarterly comparison, the completion of one prominent retail center in mid-December (which did not achieve immediate high physical occupancy), caused a slight decrease in the occupancy level by 0.7%, over the 3rd quarter’s figure.

As of December 2011, the total Jakarta retail supply was recorded at 3,559,600 sqm (+1.6% YoY), comprising 2,435,700 sqm (or 68.4%) within retail centers for lease and 1,123,900 sqm (31.6%) in strata-title centers.

As of December 2011, average base rentals for specialty shop units on the ground floor in premium locations were recorded at Rp.615,600 per sqm per month, an increase of 0.1% (QoQ) or 3.0% (YoY).

70.5% of new retail supply in 2012 will be dominated by onestop retail centers within mixeduse developments. Supporting retail facilities and strata-title centers will only contribute 27.9% and 1.6%, respectively. With projected additional supply of 336,800 sqm, cumulative supply is forecast to grow 9.5% by the end of 2012.

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Marketing Piaggio Leads Scooter Market in Indonesia Piaggio Group is the largest manufacturer of two-wheelers and one of Europe’s market leaders in its class. Piaggio Group’s range of products include scooters, mopeds and motorcycles with engine capacity between 50 to 1,200 cc, with brands Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo.

P

hicles supported with after-sales service and the availability of spare parts & accessories,” said Sergio Mosca, Managing Director of PT Piaggio Indonesia.

inno, the company has strengthened its position as Italy’s largest economic player in the region.

It offers three products with complete variants, namely Vespa LX 125 & Vespa LX 150; Piaggio Liberty 150; and Piaggio Zip 100.

Vespa and Piaggio have many fans in Indonesia. Although today’s customers have more choices of brands, Piaggio maintains an emotional connection with fans in the scooter market.

Thanks to modern factories in Italy, Spain, China, and Vietnam, Piaggio scooters offer excellent quality and comprehensive aftersales service.

Piaggio Group is the largest manufacturer of two-wheelers and one of Europe’s market leaders in its class. Piaggio Group’s range of products include scooters, mopeds and motorcycles with engine capacity between 50 to 1,200 cc, with brands Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo.

Piaggio Group also produces light vehicle segments of three and four wheels under brands Ape, Porter and Quargo, which is a series of commercial vehicles.

With a factory covering 20,000m2, the company will be able to increase production from 100,000 units per year to 300,000 units per year in mid2012. An important step was made to respond to the market demand in Southeast Asia that continues to develop a premium brand with unique style, combined with the advantages of the latest technology.

iaggio & C. Spa. is one of the leading manufacturers of two-wheels and commercial vehicles based in Europe. Founded in 1884 by Rinaldo Piaggio, the inventor of scooters, the company is a leader in the world market through a variety of brands such as Vespa, Piaggio, and Gilera.

Last year, Piaggio established PT Piaggio Indonesia as proof of its full commitment to its loyal customers in Indonesia.

“Piaggio products have been present in Indonesia for many years and successfully stole the hearts of scooter lovers with its unique design and reliability of Italian-made motorcycle engines.

With the presence of PT Piaggio Indonesia, we provide stylish ve-

Since the completion of the factory in Vietnam on June 2009 with a total investment of $30 million, Piaggio has expanded its activity dramatically.

With a total investment of $40 million in production and R & D (Research & Development) which was announced by Piaggio Group Chairman & CEO, Robert Colan-

The factory at Vietnam allows Piaggio to seek opportunities to expand and open other factories in the ASEAN region.

“We are considering to open our production plant in Indonesia,” said Sergio Mosca.

“In Indonesia we have the strongest competitors in the world, but I believe that Piaggio has a different market segment. So our strategy is to be different in the market. Other products are simple utility: they can take you from A to B, very low

Vespa LX 125 & Vespa LX 150

Piaggio Liberty 150

cost, very efficient. So for the people who want something different and be distinguished from the crowd, Piaggio is the right product,” explained Mosca.

By the end of 2011, PT Piaggio Indonesia has set a target to have about 35 dealers spread in most parts of Indonesia such as Greater Jakarta, Java, Bali and Sumatra.

Mosca added, “At the moment our main target is not sales of the unit but to establish a good network. 100 outlets throughout Indonesia will be opened gradually.

First step is to open outlets, be-

cause it is the best way to reach consumers.”

For premium brand, service is one key to success. For that entire Piaggio outlets will be equipped with a garage that is able to guarantee the availability of spare parts. Furthermore, Piaggio will control the supply chain from production plants to warehouses in Indonesia, in order to deliver vehicles to customers on time.

Mosca concluded, “Indonesia is a good market. It’s growing economy increases public mobility, so the spending power is there. Mo-

Piaggio Zip 100

bility is a need in this country.

Vespa is the good solution of twowheels. Two-wheel vehicle is the present and the future, as long as the economy is growing and public transportation is still not suitable.”

So for the people who want something different and be distinguished from the crowd, Piaggio is the right product.”

SECTION

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WHAT’S ON 2012

Display until January 12, 2012 /// N0. 30 www.thepresidentpost.com

C

CALENDAR OF EVENTS

2012 SIMPLE PLAN CONCERT KATY PERRY CONCERT JAVA JAZZ FESTIVAL JABABEKA JOB FAIR NKOTBBSB TRANSIT OF VENUS THE 9TH INDONESIA CELLULAR SHOW & THE 14TH INDONESIA COMPUTER FESTIVAL THE 2012 SUMMER OLYMPIC GAMES THE 20TH INDONESIA INTERNATIONAL MOTOR SHOW DKI JAKARTA GOVERNOR ELECTION THE 4TH JABABEKA INTERNATIONAL CULTURAL FESTIVAL THE US PRESIDENTIAL ELECTION

Simple Plan Concert

Simple Plan will perform not only in Jakarta (Jan 17) but also in Surabaya (Jan 18). Concert series entitled Get Your Heart On! Indonesia Tour 2012 is expected to satisfy its fans at two points at once.

Katy Perry Concert

From a series of names that will perform a concert in Indonesia this year, Katy Perry’s concert on 19 January 2012 is the most eagerly awaited by Indonesians. Her success in recent years makes it a great base of fans in Indonesia.

JAVA JAZZ Festival

The much-awaited jazz festival is set to be held (March 2-4) at Jakarta’s Kemayoran Fair Grounds, featuring international and national musicians. Arguably the biggest jazz festival in the world, or at least on a par with The Hague’s North Sea Jazz Festival and Montreaux’s Jazz Festival, JJF is set to fascinate jazz lovers: Herbie Hancock and Pat Metheney, among others, will be on hand to make the musical event even more exciting than before.

Jababeka Job Fair

Industrial estate Jababeka will hold a job fair on April. Jababeka has more than 1,500 tenants in the industrial area and is expected to involve at the job fair. The event is intended to facilitate fresh graduates to get jobs and work at Jababeka’s tenants.

NKOTBBSB

June 1, 2012 Mata Elang Inter-

national Stadium (MEIS), Ancol, Jakarta will be filled with the female fans of the two large boybands, New Kids on the Block and Backstreet Boys.

NKOTB gained popularity in the early 1990s with several hits, like ‘Step by Step’ and ‘Tonight’. While the Backstreet Boys successfully kicked off the world music with the song ‘I’ll Never Break Your Heart’ and ‘Get Down (You’re the One for Me)’. Now, these two groups are collaborating and released a single entitled ‘Do not Turn Out the Lights’.

EURO 2012

Euro 2012, will be the 14th European Championship for national football teams sanctioned by UEFA. The final tournament will be hosted by Poland and Ukraine between 8 June and 1 July 2012. The finals will feature sixteen national teams, as has been the format since 1996.

The sixteen finalists who will participate in the final tournament are Croatia, Czech Republic, Denmark, England, France, Germany, Greece, Italy, Netherlands, Poland (co-hosts), Portugal, Republic of Ireland, Russia, Spain (title holders), Sweden, Ukraine (co-hosts, first appearance).

The obligatory improvement of the football infrastructure includes the building of new stadium. Six of the eight venues are brand new stadia currently being constructed and ready to open in advance of the tournament; the remaining two (in Poznań and Kharkiv) have undergone major renovations.

The 9th Indonesia Cellular Show & the 14th Indonesia Computer Festival

sia Computer Festival will be held. It is one of the biggest exhibitions for the computer and IT industry in Indonesia.

The event will show a wide range of products from related industries. For five days, both events will be held on 0610 June 2012.

The 2012 Summer Olympic Games

What will happen in 2012? People said that 2012 is a very mysterious year.

Nobody knows for sure what will happen in year 2012. But, the year 2012 has been included in many prophecies and is considered to be very important spiritually. But we’re not talking about any spiritual events or prophecies right now; here are scheduled sensible events that deserve out attention.

Indonesia International Communication Expo & Conference (ICC) 2012 is an integration of B2C & B2B exhibition focusing on Cellular Operator infrastructures business. At the same time, the 14th Indone-

The 2012 Summer Olympic Games will take place in London, England from 27 July to 12 August 2012. The 2012 Summer Olympic program features 26 sports and a total of 39 disciplines.

The Olympics have prompted a redevelopment of areas of London in which the games will be held.

The Games will make use of venues including Wembley Stadium, Wembley Arena, Wimbledon, Lord’s Cricket Ground, The O2 Arena, Earls Court Exhibition Centre, Weymouth and Portland National Sailing Academy and the Excel Centre.

The 20th Indonesia International Motor Show

Indonesia International Motor Show (IIMS) is one of the annual and biggest exhibitions in Indonesia. The event will showcase a wide range of products and accessories for the automotive industry which will attract many visitors from the region and abroad.

Profile for exhibit include Luxury Limousines, Sedans, Coupes, Vintage Cars, 4WDs, Dune Buggies, Go Karts, Commercial Vehicles, Heavy Duty Equipment, Garage Equipment & Tools, Automotive Spears, Car Accessories, Car Hi-Fi Equipment and Lubricants.

DKI Jakarta Governor Election

On October 2012, the term of Fauzi Bowo as Governor of Jakarta will be over. As the center of government, the Jakarta Election 2012 will be the focus of Indonesians, especially Jakartans. The elections will also be a competition for leading candidates to nominate themselves as

governor—so far there are 14 candidates.

Facing enormous complexities, Jakarta needs a leader with a vision for the future to humanize its citizens. Besides, the leaders should have a strong character and dare to take risks. In this case Jakarta needs a leader who thinks “out of the box”, “crazy and brave”.

Major problems in Jakarta are floods, traffic, and crime. Jakarta needs to find a leader who can address the source of the problem and apply the solutions effectively.

The 4th Jababeka International Cultural Festival Jababeka’s annual event JICF will be held on November. The company still gives more attention on cultural issues since Jababeka houses expatriates from several countries and foreign students attending President University who interact with each other.

The US Presidential Election

The United States presidential election of 2012 will be held on Tuesday, November 6. It will be the 57th quadrennial presidential election in which presidential electors, who will actually elect the President and the Vice President of the United States on December 17, 2012, will be chosen.

Barack Obama, who is eligible for a second and final term as President, has announced that he will seek nomination to be the Democratic Party’s candidate in this election.

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What’s on 2012 www.moviedeskback.com

UPCOMING MOVIES 2012 JANUARY

Underworld: Awakening

Kate Beckinsale, star of the first two films, returns in her lead role as the vampire warrioress Selene, who escapes imprisonment to find herself in a world where humans have discovered the existence of both Vampire and Lycan clans, and are conducting an allout war to eradicate both immortal species.

Cast: Kate Beckinsale, Michael Ealy, Scott Speedman, Charles Dance

animated classic “Beauty and the Beast” returns to the big screen in Disney Digital 3D™, introducing a whole new generation to the Disney classic with stunning new 3D imagery. The film captures the fantastic journey of Belle, a bright and beautiful young woman who’s taken prisoner by a hideous beast in his castle. Despite her precarious situation, Belle befriends the castle’s enchanted staff -- a teapot, a candelabra and a mantel clock, among others -- and ultimately learns to see beneath the Beast’s exterior to discover the heart and soul of a prince.

Cast: Robby Benson, Richard White, Jerry Orbach, David Ogden Stiers

“Walt Disney Pictures’ magical

MARCH

FEBRUARY

21 Jump Street

An undercover police unit consisting of young-looking officers infiltrate high schools to control youth crime.

Cast: Jonah Hill, Channing Tatum, Ice Cube, Brie Larson, Rob Riggle, Dave Franco

Ghost Rider: Spirit of Vengeance

Beauty and The Beast 3D

Whitworth plays a criminal who is recruited by The Devil to find the boy and is later turned into a demonic creature.

Cast: Nicolas Cage, Johnny Whitworth, Ciaran Hinds, Violante Placido, Fergus Riordan.

The story sees Johnny Blaze, aka Ghost Rider (Nicholas Cage), hiding out in remote Eastern Europe and struggling to repress his curse. Blaze is recruited by a sect to take on The Devil (Ciaran Hinds), who wants to take over his mortal son’s body on the kid’s birthday. Idris Elba plays an alcoholic warrior monk tasked with finding Ghost Rider. Johnny

Wrath of The Titans

A decade after his heroic defeat of the monstrous Kraken, Perseus—the demigod son of Zeus— is attempting to live a quieter life as a village fisherman and the sole parent to his 10-year old son, Helius. Meanwhile, a struggle for supremacy rages between the gods and the Titans. Dangerously weakened by humanity’s lack of devotion, the gods are losing control of the imprisoned Titans and their ferocious leader, Kronos, father of the long-ruling brothers Zeus, Hades and Poseidon. The triumvirate had overthrown their powerful father long ago, leaving him to rot in the gloomy abyss of Tartarus, a dungeon that lies deep within the cavernous underworld. Perseus cannot ignore his true calling when Hades, along with Zeus’ godly son, Ares (Edgar Ramírez), switch loyalty and make a deal with Kronos to capture Zeus. The Titans’ strength grows stronger as Zeus’ remaining godly powers are siphoned, and hell is unleashed on earth.

Enlisting the help of the warrior Queen Andromeda (Rosamund Pike), Poseidon’s demigod son, Argenor (Toby Kebbell), and fallen god Hephaestus (Bill Nighy), Perseus bravely embarks on a treacherous quest into the underworld to rescue Zeus, overthrow the Titans and save mankind.

Cast: Sam Worthington, Ralph Fiennes, Liam Neeson, Edgar Ramirez, Toby Kebbell, Bill Nighy.

APRIL The Three Stooges

Set in modern day and centers on the slapstick adventures of Larry, Moe and Curly.”

Cast: Will Sasso, Sean P. Hayes, Sofia Vergara, Chris Diamantopoulos, Jane Lynch, Larry David.

Men in Black III

The MIB duo of Agent Jay (Will Smith) and Agent Kay (Tommy Lee Jones) are back in action. When the world is threatened by an evil alien, Agent Jay travels back in time to 1969, where he teams up with the younger Agent Kay to stop an evil villain named Boris (Jemaine Clement) from destroying the world in the future. Emma Thompson will play take-charge MIB operative Agent Oh, who is monitoring a prison breakout.

Cast: Will Smith, Tommy Lee Jones, Josh Brolin, Jemaine Clement, Rip Torn, Emma Thompson.

MAY The Avengers

The Avengers will bring together the super hero team of Marvel Comics characters for the first time ever, including Iron Man, Captain America, Thor, The Hulk and more, as they are forced to band together to battle the biggest foe they’ve ever faced.

Cast: Robert Downey, Scarlett Johansson, Samuel L. Jackson, Jeremy Renner, Chris Evans, Chris Hemsworth

JUNE GI Joe: Retaliation

After grossing nearly $300 million worldwide, it’s no surprise that “GI Joe: The Rise of Cobra” is getting a sequel. No plot details have been announced.

Cast: Channing Tatum, Byunghun Lee, Dwayne Johnson, Elodie Yung, D.J. Cotrona,Ray Park

Madagascar 3: Europe’s Most Wanted

Alex the Lion, Marty the Zebra, Gloria the Hippo, and Melman the Giraffe are still fighting

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to get home to their beloved Big Apple; King Julien, Maurice and the Penguins are along for the adventure. This time the road takes them through Europe where they find the perfect cover: a traveling circus, which they reinvent Madagascar style.

Cast: Ben Stiller, Chris Rock, David Schwimmer, Jada PinkettSmith, Sacha Baron Cohen, Frances McDormand.

id and accidentally defrosted in a museum in present day.

Cast: Ray Romano, Queen Latifah, Denis Leary, John Leguizamo, J.B. Smoove, Jeremy Renner

Cast: Jeremy Renner, Rachel Weisz, Edward Norton, Oscar Isaac, Joan Allen, Albert Finney

The Expendables 2

Sylvester Stallone told the LA Times that if The Expendables does well, investors would likely fund a sequel for which he has “an idea ready to go. He did not reveal any plot details though.

Cast: Sylvester Stallone, Bruce Willis, Arnold Schwarzenegger, Dolph Lundgren, Mickey Rourke, Terry Crews.

SEPTEMBER

December 12, 2011 C3

daughter Kim from Albanian kidnappers. When the father of one of the kidnappers swears revenge, and takes Bryan and his wife hostage during their family vacation in Istanbul, Bryan enlists Kim to help them escape, and uses the same advanced level of special forces tactics to get his family to safety and systematically take out the kidnappers one by one.

Cast: Maggie Grace, Liam Neeson, Rade Sherbedgia, Famke Janssen, Luke Grimes

Resident Evil: Retribution

Total Recall The Dark Knight Rises

JULY

Eight years after the events of The Dark Knight, Batman faces challenges from the brutal Bane and the stealthy Catwoman.

Cast: Christian Bale, Michael Caine, Gary Oldman, Tom Hardy, Anne Hathaway, Joseph Gordon-Levit.

Based on a Philip K. Dick story in which people can buy literal dream vacation. Unlike the 1990 version with Arnold Schwarzenegger, the movie takes place entirely on one planet.

Cast: Colin Farrell, Jessica Biel, Bryan Cranston, Kate Beckinsale, Ethan Hawke, John Cho

A sequel to “Resident Evil: Afterlife 3D”, which had an opening of $73.2 million worldwide in just three days.

Cast: Milla Jovovich, Michelle Rodriguez, Johann Urb, Boris Kodjoe, Shawn Roberts, Sienna Guillory.

Ice Age: Continental Drift

The 4th installment of the “Ice Age” franchise sees Manny, Sid, Diego, Ellie and Scrat frozen sol-

Based on the 1974 film, “The Texas Chainsaw Massacre,” directed by Tobe Hooper. The story will pick up immediately where Tobe Hooper’s original left off before flashing forward 35 years.

Cast: Tania Raymonde, Scott Eastwood, Trey Songz, Dan Yeager, Alexandra Daddario

AUGUST The Bourne Legacy

Fourth installment of the Bourne franchise based on an original story. As writer/director Tony Gilroy explains, “This is not a reboot or a recast or a prequel. No one’s replacing Matt Damon. There will be a whole new hero, a whole new chapter…this is a stand-alone project.” Jason Bourne will not be featured in the film; Jeremy Renner will play another assassin trained in the same program as Bourne.

The Twilight Saga: Breaking Dawn Part II

After the birth of Renesmee, the Cullens gather other vampire clans in order to protect the child from a false allegation that puts the family in front of the Volturi.”

Cast: Robert Pattinson, Taylor Lautner, Kristen Stewart, Peter Facinelli, Billy Burke, Kellan Lutz.

The Hobbit: An Unexpected Journey

OCTOBER

Peter Parker (Andrew Garfield) is going back to high school when the next “Spider-Man” hits theaters in the summer of 2012. The film will focus on a teenager grappling with both contemporary human problems and amazing super-human crises.

Cast: Andrew Garfield, Emma Stone, Rhys Ifans, Martin Sheen, Sally Field, Denis Leary

NOVEMBER

DECEMBER

The Texas Chainsaw Massacre 3D

The Amazing Spider-Man

ates elaborate machines which bring down a bolt of lightning that revives the animal.

Cast: Winona Ryder, Martin Landau, Martin Short, Catherine O’Hara.

Taken 2

Liam Neeson returns as Bryan Mills, the retired CIA agent with a particular set of skills who stopped at nothing to save his

Frankenweenie

After being hit by a car, a pet dog is brought back to life by his loyal owner, a young boy, who cre-

This prequel to The Lord of the Rings trilogy follows Bilbo Baggins, an upstanding member of the “little people,” on the hazardous journey with Gandalf the Grey. Together with 13 fortuneseeking dwarves, Bilbo Baggins will be swept out his door and into a dangerous but grand adventure through the Lonely Mountains, where he must contend against all manner of enemies, from dragons, to giant spiders, hostile elves, ravenous wolves, and – perhaps the most perilous of all – a subterranean creature named Gollum from whom Bilbo wins a magical ring (the ring that rules them all) in a riddling contest.

Cast: Ian McKellen, Hugo Weaving, Andy Serkis, Martin Freeman, Richard Armitage, Aidan Turner

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Tourism Govt Sets 2012 Tourists Arrival Target at 8m The development of tourism industry would be focused on ecotourism, meeting, incentive, convention and exhibition (MICE), sports event, heritage, shopping, honeymoon, cruise, culture and arts show, spa and healthcare.

The Tourism and Creative Economy Ministry has set the target of tourist arrivals for 2012 at 8 million, with foreign exchange earnings projected to reach $8.98 billion.

The figure represented a 7.35% increase compared to this year`s, the director of the ministry`s market development, Sadar Pakarti Budi said here on Friday.

TANJUNG LESUNG. Vice Presdent Boediono and his family spent a three-day holiday (Dec 24-26, 2011) at the Tanjung Lesung resort, Banten, west Java, admiring its potentials as a major tourist destination.

Wakatobi Seeks Rp5 billion for Tourism Development In an effort to support the tourism industry in Wakatobi, the district’s tourism and creative economy office would in 2012 build a culinary market in the district town of Wangi-wangi.

W

Wa k at obi district`s tourism and creative economy office needs Rp5 billion in funds from the 2012 regional budget to develop the region`s tourism, a spokesman said.

“We need the funds to finance the management of various tourism objects, including the maintenance of the traditional culture of the local people, and conduct promotions in Australia and oth-

er countries in Asia,” the head of the district`s tourism and creative economic office, Tawakal, said on Friday.

According to Tawakal, Australia and Asian countries were the main targets of Wakatobi`s tourism promotions in a bid to attract as many tourists as possible from there. “We hope tourists from Australia and Asian countries will make Wakatobi their destination,” Tawakal said.

He said that the number of both domestic and foreign tourists who visit Wakatobi at present had reached 15,000 to 20,000 people per year.

Tawakal said most of the foreign tourists who visited Wakatobi came from the United States, England, the Netherlands, and Switzerland but only a few of them were from Australia and Asia. “Therefore we are going to intensify Wakatobi tourism pro-

motions in Australia and Asia to attract more tourists from there,” Tawakal said.

In Wakatobi, a tourism information center has been set up for tourists to obtain information about places to visit, accommodations, restaurants, and transportation facilities.

“Wakatobi is offering tourists its natural beauty, marine parks with attractive coral reefs and schools of ornamental fishes, and historic sites such as Liya Togo Fort and Liya old mosque,” Tawakal said.

In an effort to support the tourism industry in Wakatobi, Tawakal added, his office would in 2012 build a culinary market in the district town of Wangi-wangi. “The construction of the culinary market in Wangi-wangi next year is to meet the demand of both domestic and foreign tourists for typical Wakatobi cuisine,” Tawakal said.

Bandung Hosts Coffee Festival Bandung, West Java`s provincial capital, hosted a Road to Indonesia Coffee Festival on December 23, 2011, as a precursor to an Indonesian Coffee Festival in Bali next year, the event`s initiator said.

“Bandung which was the first region in Indonesia to host ?coffee plantations will have the honor of hosting the Road to Indonesia Coffee festival,” Yanthi Tambunan said here Wednesday. Meanwhile, the Indonesian Coffee Festival will be held in Bali in early 2012. The festival was expected to be a haven for coffee lovers in Indonesia.

According to Yanthi, Bandung was chosen to host the Indonesian Coffee Festival`s pre-event because of its history in coffee

cultivation and trade that had brought it high prestige.

Bandung also played a significance role in the development of coffee in Indonesia because the first coffee plantations in Indonesia were established in the Bandung region by Peter Eugelhard during the Dutch colonial period, Coffee grown in the Bandung region later became known worldwide as Java Coffee, she said.

Based on this history, Bandung which has a cold climate, had a great potentials for coffee business both packaged coffee and coffee treats in cafes. “The Road to Indonesia Coffee Festival educates the public about coffee,” Yanthi said.

Indonesia is currently the

world`s biggest coffee producer after Brazil and Vietnam.

Indonesia`s current coffee production stands at 200 thousand tons per year. Ideally with this high production Indonesia no longer needed to import coffee. With growth of 10 percent of the local production, it would be sufficient to meet the domestic needs, Yanthi said.

“Indonesia`s coffee export potential is still large including to Japan, Germany, Italy, UK and U.S. However, usually the coffee exported comes back to Indonesia under a foreign label,” she said. The current upswing in the coffee price was related from the rainy season. The coffee price in the market was now around Rp80,000 per kilogram.

“Tourism as Economic Safety Belt” Tourism and Creative Economy Minister Mari Elka Pangestu said the tourism sector and domestic market had the potentials to serve as a safety belt for national economy in the face of global economic meltdown.

“Indonesian tourism is not vulnerable to economic crisis so that the tourism sector and domestic market can serve as a safety belt for national economy,” the minister said here on Wednesday.

She was speaking to a seminar on “Tourism Outlook 2012” organized by ANTARA National News Agency with a theme of optimizing the creative economic sector for the tourism industry in Indonesia.

“We do not have to be worried about our tourism because we have huge tourism potentials. Indonesia is the largest archipelagic country and has the world`s fourth largest population of 237 million,” the minister said.

She said that Indonesia stretched 5,120 km from the east to the west and 1,760 km from the north to the south.

“We have eight World Cultural Heritage Sites which has the potentials to serve as host for international festivals and exhibitions, as well as strong creative industries,” the minister said.

The tourism and creative economy ministry has set a target of 8 million foreign tourist arrivals up to the end of this year.

The government has set itself the target of attracting 7.7 million tourists for 2011.

“The tourism sector is projected to grow 6.42% this year,” he said.

In anticipation of unexpected thing next year, the ministry had set three versions of tourist arrival targets, namely a pessimistic target of 7.8 million, a moderate target of 7.9 million and optimistic target of 8 million, he said.

He expressed his optimism the tourism industry would grow positively according to the target thanks to the improving competitive edge of

the Indonesian tourism.

The competitive edge of the Indonesian tourism would become increasingly stronger in terms of budget, tourist arrivals, foreign exchange earnings, representative offices and direct flight seats which currently stood at 15 million. “So far we have provided visa-free facilities to 12 countries and visa-on-arrival (VOA) facilities to 64 countries,” he said.

Looking ahead, he said the development of tourism industry would be focused on ecotourism, meeting, incentive, convention and exhibition (MICE), sports event, heritage, shopping, honeymoon, cruise, culture and arts show, spa and healthcare.

To achieve the tourist arrival target of 8 million, the ministry would apply an integrated strategy by among others disseminating tagline Wonderful Indonesia, eying special segments and intensifying marketing activities.

The President Post

www.thepresidentpost.com

December 12, 2011 C5

Travel www.bagpeker.com

Samosir District to Have Geopark

Governor: E. Nusa Tenggara Attracts Foreign Tourists Through Sail Komodo East Nusa Tenggara (NTT) Governor Frans Lebu Raya said a Sail Komodo event will be organized in 2013 to draw foreign tourists to the province`s isles.

Foreign tourists should visit the small islands with their beautiful natural and cultural attractions, get to know the local people and understand their traditions, the governor said here on Thursday.

“Currently the provincial administration is initiating a Sail Komodo 2013. We hope this event will also encourage its participants to visit the remote isles in NTT Province and thereby enable them to tell others in their countries about the isles,” he told the press.

The geopark would be built around a location that was formed by earth formation processes thousands of years ago and it would eventually be managed as a nature conservation and tourism area.

T

he Samosir district administration in North Sumatra will build a geopark worth Rp20 billion to add to the Lake Toba region`s marine tourism potentials, a local official said here Thursday.

“The geopark project to showcase Lake Toba is expected to be implemented beginning in mid2012,” Samosir district administration spokesman, Gomgom Naibaho, said.

He said the geopark would be built around a location that was formed by earth formation processes thousands of years ago and it would eventually be managed as a nature conservation

and tourism area. To realise the geopark project , the Samosir district administration had signed a cooperation agreement with the Agency for the Asseement and Application of Technology (BPPT) in Jakarta, Gomgom said.

“Samosir is now considered so important for geological research that it has been proposed for incorporation into the world geo park network,” he said.

Gomgom added the agreement signed with BPPT includes the assessment and implementation as well as socialization of the technology to support regional development. The goal was to develop the exploitation of the potentials owned by the region through in-

Over the past several years, participants of Sail Indonesia, had used NTT as an entry gate by making transits in Kupang, Alor, Flores Timur, Maumere, Ende and Manggarai.

The Sail Komodo 2013 is expected to attract foreign tourists to stay for few days in NTT`s isles, and make them as touristic destinations in the future, according to the governor. The NTT administration has proposed the organization of Sail Komodo 2013 to the central government and hoped that the NTT regional legislative council would give their political support.

The proposed internation-

creasing the capacity of the local people and institutions.

The scope of the agreement would be in the form of the development of regional innovation systems and technology policy assessment that cover innovation, diffusion, competitiveness and technology audits. In addition. the assessment and application of agro-technology and biotechnology, technology assessment and application of environmental as well as natural resource exploitation.

“The application of industrial design and engineering information technology, energy and minerals will also included in the cooperation,” Gomgom said.

The geopark project to showcase Lake Toba is expected to be implemented beginning in mid-2012.”

Bengkulu Showcases Two Blooming Rafflesia Flowers www.indonesia-ottawa.org

Two Rafflesia arnoldi flowers are in bloom at the Taba Penanjung natural sanctuary in Central Bengkulu District, Bengkulu Province.

The two flowers, located only 15 meters from each other, bloomed at the same time, Anggi, a local resident, said here.

“We found three flowers within a radius of 20 meters, but one has withered, and two are now in full bloom,” he said.

The giant flowers were found in an area located around 100 meters from a road connecting Bengkulu city and Kepahiang district.

Last week, a Rafflesia flower was in bloom in the Bukit Daun protected forest, Kepahiang District.

Coordinator of Tebat Monok Rare Flower Lovers Holidin said 13 Rafflesia arnoldii flowers had been found this year. Six flower buds are currently waiting to bloom.

“We predict one flower bud will bloom this week,” he said. Holidin said the Bukit Daun protect-

Rafflesia arnoldii ed forest and the Taba Penanjung I and Taba Penanjung II natural sanctuaries were the habitats of Rafflesia arnoldii.

However, some parts of the forest area have been converted into coffee plantation. Holidin urged the government to protect the for-

est area in order to preserve the habitat of Rafflesia arnoldii.

Rafflesia is the largest, heaviest, rarest and one of the most smelly flowers in the world. In full bloom, its crown can reach a diameter of 1 meter and weigh about 10 kgs.

Rafflesia is a parasitic plant without any leaves, stems and roots.

Riau Forests Offer Unique Wild Cats Five unique species of cats had been discovered in Indonesian Riau`s forests after a recent research by the World Wildlife Fund (WWF).

Indonesian WWF Tiger Research Team coordinator Karmila Parakkasi said here on Wednesday that the five species of wild cats are the Sumatran tiger (Panthera tigris sumatrae), clouded leopard (Neofelis diardi), stone cat (Pardofelis marmorata), golden cat (Catopuma temmincki) , and the leopard cat (Prionailurus bengalensis).

These five endangered cat species are found in Bukit Tigapuluh National Park and Rimbang Baling Wildlife Reserve, Province of Riau, after WWF cameras had been mounted in a number of ar-

eas to record clearly their existence.

“The activities of these wildcats had been recorded clearly on the research team`s cameras on their regular route,” she said.

Locations of the wild cats were known as the wildlife corridor that connects the conservation areas Rimbang Baling Wildlife Reserve and Bukit Tigapuluh National Park . “Both areas are currently threatened by degradation due to serious encroachment and logging,” said Karmila.

According to Law No.7/1999 on the plants & animals, the wild cats are state protected animals.

Karmila added that based on the criteria of International Union for Conservation of Nature (IUCN), four other wild cat species apart

from the leopard cats had also been declared as critically endangered species.

Therefore the findings of the five species Sumatran cats proved that they are unique in Bukit Tigapuluh and the surrounding connective corridor still exists.

“These findings also indicate the importance of serious efforts to immediately protect the region from the threat of large scale natural forest encroachment and illegal logging,” said Karmila.

During the three months of systematic surveys with automatic monitoring cameras in 2011, WWF-Indonesia has successfully found a total of 404 images of wild cats including 226 photographs of the Sumatran tiger, 77 of clouded leopards, 70 of golden cats, four of stone cats, and 27 Leopard cats.

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Frans Lebu Raya East Nusa Tenggara (NTT) Governor

al marine event would be called Sail Komodo because Komodo has become globally known by its inclusion as a finalist in the New7Wonders of Nature competition, he said.

Whether Komodo would win or lose in the New7Wonder competition, the NTT government would continue to promote Komodo internationally, he said. The Komodo dragon is the world`s only surviving giant lizard living in Komodo National Park in NTT. The number of foreign tourists visiting Komodo National Park has increased since Komodo became a finalist in the New7Wonders of Nature competition, East Nusatenggara (NTT) Deputy Governor Esthon Foenay said.

“Up to August 2011, some 32,354 foreign tourists visited the Komodo national park while the number of domestic tourists who came to the island was 4,145, up from 2,955 in 2010,” the deputy governor said recently.

The President Post

C6 December 12, 2011

www.thepresidentpost.com

Living A Social Media Addict Tries to Disconnect

I

By Kiran Khalid, CNN

’m a tweeting fiend. Whether it’s quoting Herman Cain or issuing citations for the fashion police – clear heels to work, really? – I’m always thumb-typing away.

As a journalist who tweets prolifically, I’m acutely aware of the benefits of social media. My Twitter is connected to my Facebook, I carry two BlackBerrys and when I’m out of the office I’m of-

ten obsessing over work e-mail or checking my Twitter and Facebook news feeds.

This can make me an obnoxious dining companion, as my best friend noted resignedly during a recent visit. “I know you only hear half of what I say,” she said, looking at her lunch menu. “But it’s your job, that’s how you stay plugged in.” Another friend, a fellow journalist, said he was used to social-media addicts but that I took it “to a whole new level.”

from sunsets to sloths from Costa Rica in July.)

This time, I vowed, I would rid myself of my appalling addiction – not an easy task for a New Yorker who may have adult ADD – and chronicle the experience. Here’s how it went:

Day 1

So on a recent five-day vacation trip to Antigua, I decided to disconnect from all electronic communications and actually experience what was in front of me instead of

I start the day by announcing – on Twitter, of course – my intention to unplug for the week: “As soon as they make me turn my phone off, I begin my journey which entails disconnecting from social media and my bberry for the next 5 days. I will be chronicling my withdrawal for your amusement ...”

I get a dozen responses expressing surprise and support. Beyond that, there isn’t a major outcry to keep tweeting – my first clue that the Twitterverse will survive without me.

t we et i ng about it. (I know, I know – unplugging doesn’t sound particularly difficult when you’re on a beach in the Caribbean. But you’re looking at someone who tweeted everything

I land at Antigua’s airport, where I’m greeted by warm sunshine, a long customs line and a man playing Bob Marley’s “Three Little Birds” on a tin drum. All of these observations are ones I ache to tweet. When traveling alone, that’s what I do. Even with a companion, I still tweet, then proudly chuckle when a witty friend takes my sarcasm ball and runs with it. Not this time. I am painfully aware of my self-imposed moratorium.

I share a taxi to my hotel with a Brooklyn woman who says with annoyance, “I’m disconnected because my iPhone gets no signal here.” I arrive at the Keyonna Beach hotel to find my room helpfully has no TV, phone or clock. I immediately lock my BlackBerrys away in the safe. Operation

Disconnect is moving full speed ahead.

At dinner, the woman at the table next to mine looks unfazed as her male companion checks his phone. I stop myself in mid-judgment, realizing that guy was me at every meal I’ve had for the past few years. Resisting the urge to cheat – it’s daunting dining alone, without an electronic companion – I take out my journal and start writing about my day. So far, so good, I think.

Day 2

Breakfast is croissants, fruit and the kind of coffee that’s so good it turns you into one of those cranky people who’s always lamenting the scarcity of a decent cup of coffee. Perfect, yes? No. I have no idea what the world is tweeting this morning. And that’s not the only problem. I’m restless.

In the seconds after I announced my moratorium on Day 1, a Facebook friend wrote on my wall: “It’s awkward at first, but you’ll start to enjoy being disconnected fairly quickly.”

I had wondered: Why awkward? Now I knew. I’m without a social crutch – one that allows me to engage with the world, even when I’m alone. In a place known for its pristine beaches, I constantly feel the impulse to share my surroundings with my friends and family.

But it’s not an altruistic impulse. I begin to realize it’s the reactions to my observations that I find engaging and that I miss. Every time I go for a swim, come back and lie in the warm sun, I reach for my BlackBerry that’s not there – it’s become second nature.

That night, I take the hotel man-

ager’s advice and take a taxi to a huge reggae party. As a precaution, I take my BlackBerry with me. The whole time the taxi driver is describing the landmarks and vistas we’re passing on the 45minute drive, I’m distracted by a BlackBerry that’s essentially off.

I’ve disconnected the phone’s Internet, but I catch myself reading old e-mails. Really? When did I become this person?

Day 3

social media embargo, to which I threw in abstinence from my CrackBerry on account of me being socially retarded. What? It was one e-mail!

Day 4

What a difference a day makes!

The urge to Facebook or tweet has all but dissipated. Really, it has.

People used to describe me as a good listener before my BlackBerry addiction took over.

Without my BlackBerry as an alarm clock, I awake to waves crashing. It’s 9:45 a.m. I take my phone to breakfast with me out of habit. During a chat with the hotel’s owner I become distracted by my BlackBerry’s blinking red light, meaning I have new e-mail.

The old me would pick up the phone and read away without any regard to the person speaking. Rude but necessary, I often reasoned: “It could be work.” This time I resist the urge and make a silent observation: “You are obnoxious. But at least you’re selfaware.”

The guilt I felt for faltering on Day 3 has strengthened my resolve to recommit myself to disconnecting. For now, at least. It seems the longer I go without social media, the less I feel the inclination. In its place, is a sense of calm. I had expected to have symptoms of withdrawal by being disconnected.

If only my friends back home, the ones disgusted by my addiction, could see me now. I am the epitome of willpower. The sensation is akin to eating a healthy meal – you feel satisfied, though not exactly satiated.

At midday I move to a different hotel, the Hermitage Bay Resort on another part of the island.

Upon arriving I am so overwhelmed by its luxury and lush surroundings, I immediately feel it warrants a massive Facebook update. This would create the mother of all threads. But I can’t.

So I cheat, sort of. I opt to email a group of close friends to let them know about this life-altering upgrade, you know, in case they went looking for me at the wrong resort. One friend immediately replies, “Aren’t you supposed to be off the computer?!”

Not exactly, I protest. This is a

Day 5

OK, so that whole “I don’t miss social media” stuff isn’t true. It’s been four days since I logged onto my accounts and I’m anxious to see what my friends are up to and fill them in on my reclamation-ofsanity tour here in Antigua.

Why the sudden shift? Maybe I have island fever, due to information underload. Yes, it is too such a thing. You’ve heard of TMI? This is TLI – too little information.

I have no idea what’s happening outside of this serene place I’ve selected as my respite. It’s driving me crazy.

Giving in, I head down to break-

fast with my laptop. I log on to my CNN e-mail and start devouring the recent developments of the Penn State abuse scandal – a story that I had covered prior to my departure. Soon I’m replying to emails and reaching out to sources regarding other stories in development.

Day 6

I’m leaving this afternoon. I feel rested, and despite all my e-mailing the day before, I do think there has been a beneficial disconnect.

En route to the airport, I savor views of the ocean and the rolling hills. Already I feel I’m learning to appreciate fleeting moments like these instead of being buried in my BlackBerry.

My two phones stay off through my journey until I touch down back at JFK. Then ... I immediately turn both on and start checking my Twitter and Facebook accounts.

And I tweet: “What I missed during my social media moratorium: egypt unrest, haqqani resignation, new syracuse and sandusky accusers and DWTS winner.”

What have I accomplished in this short foray into freedom from Facebook? I’m relearning how to connect. People used to describe me as a good listener before my BlackBerry addiction took over. I realize that by severing my BlackBerry dependence for five days, I removed a hurdle in my face-toface conversations.

The flashing red light I used respond to in seconds no longer competes so urgently for my attention. I feel like I’m back to normal.

I’m giving those I choose to spend time with what they deserve – my undivided attention. For now.

The President Post

www.thepresidentpost.com

December 12, 2011 C7

Health How Coffee Can Galvanize Your Workout Can a cup of coffee motivate you to relish your trips to the gym this winter? That question is at the heart of a notable study of caffeine and exercise, one of several new experiments suggesting that, whatever your sport, caffeine may allow you to perform better and enjoy yourself more.

S

By Gretchen Reynolds

cientists and many athletes have known for years, of course, that a cup of coffee before a workout jolts athletic performance, especially in endurance sports like distance running and cycling. Caffeine has been proven to increase the number of fatty acids circulating in the bloodstream, which enables people to run or pedal longer (since their muscles can absorb and burn that fat for fuel and save the body’s limited stores of carbohydrates until later in the workout). As a result, caffeine, which is legal under International Olympic Committee rules, is the most popular drug in sports. More than two-thirds of about 20,680 Olympic athletes studied for a recent report had caffeine in their urine, with use highest among triathletes, cyclists and rowers.

But whether and how caffeine affects other, less-aerobic activities, like weight training or playing a stop-and-go team sport like soccer or basketball, has been less clear.

So researchers at Coventry University in England recently recruited 13 fit young men and asked them to repeat a standard weight-training gym regimen on several occasions. An hour before one workout, the men consumed

a sugar-free energy drink containing caffeine. An hour before another, they drank the same beverage, minus the caffeine. Then the men lifted, pressed and squatted, performing each exercise until they were exhausted.

Exhaustion arrived much later for those who’d had caffeine first.

After swallowing the caffeinated beverage, the men completed significantly more repetitions of the exercises than after the placebo.

They also reported feeling subjectively less tired during the entire bout and, in perhaps the most interesting finding, said that they were eager to repeat the whole workout again soon.

“Essentially, we found that with the caffeinated drink, the person felt more able to invest effort,” says Michael Duncan, a senior lecturer in sports science at the University of Exeter in England and lead author of the study. “They would put more work into the training session, and when the session was finished, in the presence of the caffeinated drink, they were more psychologically ready to go again.”

How caffeine influences the physiology and psychology of weight trainers isn’t fully understood, Dr. Duncan says. In contrast to endurance sports, an increase in fats in the blood wouldn’t provide much benefit in this kind of exercise.

Instead, Dr. Duncan says, he

believes that caffeine “antagonizes adenosine,” a substance in muscles that builds up during exercise and blunts the force of contractions. The more adenosine in a muscle, the less force it generates.

Caffeine reduces adenosine levels, “which then enables more forceful muscular contractions and delays fatigue,” Dr. Duncan says. “That’s the theory, anyway,” he adds.

Additional mechanisms may also be at work, other research suggests. For an experiment published last month in The Journal of Applied Physiology, researchers asked a group of volunteers who regularly play team sports to complete a grueling workout designed to simulate the physical exertion of a soccer or basketball game.

Such sports commonly involve repeated bouts of intense sprinting, but little prolonged slower running. Most of the effort is anaerobic.

In the test, the volunteers performed about 16 percent better if they had ingested a caffeine capsule 70 minutes beforehand. They also, as it turned out, had far less potassium in the fluid between their muscles afterward. “We believe that potassium buildup is involved” in the kind

of fatigue that occurs during anaerobic activities, like team sports and weight training, says one of the study’s authors, Magni Mohr, an exercise physiologist affiliated with both the University of Exeter and the University of Copenhagen in Denmark.

ness and fine motor coordination during exercise. In a study published last month in The British Journal of Sports Medicine, soccer players dribbled, headed and kicked the ball more accurately if they’d had caffeine than if they hadn’t.

At the same time, caffeine, while affecting muscles, seems also to have a striking effect on the central nervous system and on those parts of the brain involved in mood, a l e r t-

Similarly, it’s not known whether people who swill cappuccinos and green tea all day get the same benefits from dosing themselves just before a workout as people who only occasionally drink caffeine, or whether the hour before a workout is the

www.sky-wallpaper.com

ideal moment to imbibe. Dr. Mohr suspects “it’s likely that you get more effect” if you’re not habituated to the drug, but he and others are currently studying those and similar issues and expect results soon.

In the meantime, “probably everyone can get some” fatigue-delaying and mood-enhancing benefits from caffeine, Dr. Mohr says — meaning that your gym gear should probably include a travel mug. NYT

The President Post

C8 December 12, 2011

www.thepresidentpost.com

Photo Essay

“Happiness is Medication” “Make others happy to make yourself happy” - Gendu Mulatip, Yayasan Galuh Founder -

Y

TEXT AND PHOTOS BY NANDI NANTI

ayasan Galuh which is located in Rawa Lumbu, Bekasi is founded in 1982. The place is better known as a rehabilitation center for the mentally unfit.

The patients here come from various areas. Most of them had been transferred from mental institutions or sent by police after they were picked up wandering the streets. The foundation sits on a 3,200-meter plot of land and has patients of up to 280 people with 60 staff, of which some are former patients that have recovered plus Gendu’s grandchildren.

Yayasan Galuh was founded by Gendu Mulatip who is now 96 years old. He did not have the heart to see mentally unfit people being teased at by children in his neighborhood in Bekasi. One day, a boy threw a stone at a crazy man and the man threw it back at him and hurt the child. This incident upset the parent who wanted to get back at the crazy man. But Gendu stopped the parent after explaining the situation. He later took the man to his house and cared for him until he recovered.

Not all patients are homeless people, many come from families with money, some are even public figures. Their problems usually derive from the pressure of life such as losing a job, losing a lover, unfulfilled dreams, genetic and drug problems. Hartono said that the foundation does not set any tariff for treatments, it all depends on the patientsÆ financial capability. They even welcome patients whose families could not afford to pay for free of charge.

Gendu and his staff adopt a five-step method to heal the patients which comprise prayers, advices, potions, massage. Hartono and his colleagues also often invite the patients to sing together or do daily duties and to engage in community activities such as cleaning up the neighborhood.

The method has helped many patients to recover and return to the community ôWitnessing the patients recover and return to their families is a great joy for us. Once in a while they would visit us here just to say thank you,ö said Hartono.

Since then, Gendu became popular as a person who could cure people with mental problems. Patients started to come and his house could no longer accommodate them. This is when he decided to set up Yayasan Galuh, which means ôan idea from ancestorsö, a rehabilitation center for people with mental illness, aimed to deliberate man from psychosomatic disease. The rehabilitation center is located in Rawa Lumbu, Kampung Sepatan Gg. Bambu Kuning, Sepanjang, Bekasi. It used to be located in Kampung Poncol Margahayu Bekasi, but was moved to the current location in 2007 because state electricity company PLN wanted to build an electrical substation on the land.

The foundation covers the operational cost from the donations it receive from women Koran recitation groups and biker communities. They also get financial assistance from the government, mainly from the Social Affairs Agency of the Bekasi Municipality.

The foundation cooks about 150kg of rice per day and vegetables of the size of a small truck.

There are 60 people to help around, 15 of them are former patients. They all work voluntarily with little financial compensation. ôI could get a much bigger salary if I work elsewhere, but no money could ever replace the joy that I get from working here,ö said one of the cooks and other staff when asked why they chose to work among people with mental illness.

The center currently accommodates 279 patients, consisting of 178 male patients, including four children plus women.

Hartono and his colleagues who work here, happily accept patients who are often sent by police after picking them up from the streets or those sent by Bekasi General Hospital or brought by their family members

The staff here, such as Hartono, may not have a degree in psychiatry, but because of their long experience, they were once invited to a national-scale seminar on mental illness to speak in front of psychiatrists.

We always remember Pak Gendu’s advice and we use it to help in the healing process of our patients: “Happiness is medication”.

Witnessing the patients recover and return to their families is a great joy for us.

Once in a while they would visit us here just to say thank you.”