The President Post 32th Edition by The President Post

The President Post T H E

S P I R I T

O F

IDR 20,000

I N D O N E S I A

Display until March 12, 2012 /// N0. 32

www.thepresidentpost.com

“Resolve Industrial Disputes Through Musyawarah, Mufakat” www.infogres.com

JAKARTA (TPP) – In late January massive labor protests took place in Bekasi, West Java, when thousands of workers from about 300 companies blocked the Jakarta-Cikampek toll road for several hours. They did so after a court ruled in favor of the Indonesian Employers Association (Apindo), which had challenged a gubernatorial decree increasing the minimum wage.

Indonesian factory workers still remain some of the lowest-paid in Asia, usually making between $100 to $200 a month. Similar workers in China now earn just over $300 a month, according to a 2010 survey by Japan External Trade Organisation, followed by Malaysia ($298), India ($269) and Thailand ($263).

he original gubernatorial ruling raised the minimum monthly wage in Bekasi district from Rp 1. 29 million to Rp 1.49 million ($144 to $167). But the Court ordered the provincial governor to issue a new decree based on the earlier agreement between the employers’ association and workers. In the end Apindo and the labor unions reached a deal, as the government had asked Apindo to accept the workers’ demands and drop its lawsuit, which it agreed. The government has been criticized by both sides, with businessmen saying officials should have taken a stronger stance against the workers. The business world also complained that rowdy unions will make foreign investors think twice about bringing their money into the country. On the other hand, labor leaders have berated the government for doing nothing to improve the welfare of the working class. SD Darmono, the president director of PT Jababeka, which owns and manages the largest industrial estate in Southeast Asia, told President Post that “musyawarah (deliberation) and mufakat (consensus) are the best ways to resolve labor disputes, as they are part and parcel of Pancasila.” [Pancasila is the official philosophical foundation of the Indonesian state. It comprises five inseparable and interrelated principles and were formulated by one of the state’s founding fathers and first president, Soekarno. They are Belief in the one and only God; Just and civilized humanity; The unity of Indonesia; Democracy guided by the inner wisdom in the unanimity arising out of deliberations amongst representatives; and Social justice for all of the people of Indonesia.] “Workers should not always be repressed, they should be engaged in dialogs. Musyawarah and mufakat, which are the spirit of Pancasila, have proven to be effective in putting an end to the demo in January,” he added. In a warning that echoed the

ThE ECONOMY

Non-oil/gas Manufacturing Industries Grow 6.% in 2011

The growth of all the non-oil/non-gas industrial sectors was expected to remain high this year. The industry minister expressed hope the growth of the non-oil/gas industries would exceed 7% this year. PAGE A5

sive companies can be relocated to regions with abundant of workers. The government can assist by building infrastructure so that companies would find it attractive to relocate to the regions.” The West Java provincial government plans to have workers earn Rp 5 million a month within 10 years so that they will be able to enjoy a reasonable standard of living. A significant and systemized salary raise will boost the purchasing power of Indonesians raise their level of productivity, and attract more foreign investors to Indonesia.

concerns of many businessmen and investors, Trade Minister Gita Wirjawan said that the laws sometimes favor workers at the expense of employers, and risk putting off investors just as Indonesia is on the path to economic growth. The government, celebrating a record $20 billion in foreign investment last year, is keen to keep a lid on industrial action that could scare away investors. Darmono, however, disagrees, saying that “cheap labor should not be our selling point in attracting investors to Indonesia. Our selling points should be security, legal certainty, ease in doing business, a huge and growing market, sound infrastructure and reliable human resources.” “In our industrial estate the number of Apindo members is small and does not represent the interests of the majority of companies that are foreign and nonApindo members. Foreign companies put a premium on security and harmony with workers. However, a 30% rise is a bit too high and can set a bad precedent,” added Darmono. According to the Central Statistics Agency (BPS), food prices rose by nearly 16% in 2010, while the wages of factory workers grew by less than 7%. "Wage increases have not kept up with inflation, especially food

BUSINESS

Minister to Scrap Stateowned Firms

The number of state-owned enterprises (BUMNs) in the country is to be cut by about 20 so that only 120 will be left this year, State Enterprises Minister Dahlan Iskan said here Wednesday. PAGE B2

Workers should not always be repressed, they should be engaged in dialogs. Musyawarah and mufakat, which are the spirit of Pancasila, have proven to be effective in putting an end to the demo in January." SD Darmono President Director of PT Jababeka

defines that as those who spend $2 to $20 a day. Still, many of them toil for barely a living wage, offering some of the cheapest labor in Asia. Affordable labor is a main reason investors are attracted to Indonesia, in part to offset wage increases in China, said Minister Wirjawan, who is also head of the investment coordinating board BKPM. But recent strikes for higher wages by mine workers and supermarket clerks, as well as pilots of the state-owned airline, Garuda, have disrupted business operations — and could potentially deter foreign investment.

prices," said economist Kazutoshi Chatani at the International Labor Organization. "This means that most of the workers are actually struggling to pay for basic needs."

Indonesia, the largest economy in Southeast Asia, is among the top 20 economies in the world, with growth this year of around 6%. The ratings agency Fitch last year upgraded the country to investment-grade status. More than half of its 240 million inhabitants have entered the middle class, according to the World Bank, which

Minimum workers’ wages are determined by the Law on the Council of Wages comprising APINDO (seven members), the Confederation of Workers Union (seven members) and representatives of province (14 members). Wages are divided into three types of industries, namely heavy, medium and light.

INTERNATIONAL

Indonesia-Russia Relations Bolstered Through Real cooperation Agreement Russia-Indonesia relations have gained a new momentum and become an important issue on the international agenda. PAGE B7

AUTOMOTIvE

RI Races to Produce Own Cars as Germany Steps in With Aid A car production fever is gripping Indonesia these days with students, government officials, politicians, and business leaders alike impatiently moving to manufacture what they call “Mobil Nasional" or “national cars.” PAGE C1

Says Darmono: “Bad communications within the Council of Wages and late intervention by the government is a bitter lesson we all must learn from to prevent a recurrence of the case in the regions.” “The way I see it, in the short term minimum wages must be determined on a national basis to prevent possible disputes in the future in regencies and provinces. This could be done with the help of the state-run statistics

body BPS. A regional or city index system should be applied, for example Jakarta 120% of the minimum wages, Bekasi 110% and so forth,” added Darmono. “A similar index could also be put to effect on the basis of sectors, for example manufacturing 110% and service 100%, or by the size of the company in question.” “As a mid-term solution, Jabotabek in conjunction with the government should be designated as a high-tech industry area with higher wages so that labor-inten-

The Tourism and Creative Economy Ministry and the Ministry of Industry should prepare 100 new tourist and industrial destinations and new cities in a bid to create employment, says Darmono. “Regional governments should make their provinces look nice and attractive, be and active in promoting human resources. They should manage natural resources in a proper manner. This will gradually create better distribution of wealth,” says Darmono, who is also chairman of PATA Indonesia.

AusAID to Help Improve NTB Civil Servants’ English Proficiency The Australian Embassy team had come to Mataram to familiarize relevant provincial NTB officials with an extended program to provide scholarships for NTB civil servants. Australia`s foreign aid agency AusAID has agreed to help improve the Englishlanguage proficiency of civil servants in West Nusatenggara (NTB), a local official said. "We proposed that AusAID help raise the TOEFL scores of civil servants in NTB and they agreed," said Rosiady Sayuti, head of NTB`s Development Planning Agency (Bappeda) after accompanying Vice Governor H Badrul Munir at a meeting with a team from the Australian embassy in Jakarta here on Thursday. The Australian Embassy team had come to Mataram

to familiarize relevant provincial NTB officials with an extended program to provide scholarships for NTB civil servants. “Our target is to have 50 civil servants at provincial, district or city level government offices improve their TOEFL score," he said. The average TOEFL score of civil servants in NTB now, according to Rosiady, was 450 whereas to receive a scholarship for studies abroad one had to have a minimum TOEFL score of 500.

Australia hails Indonesia`s First Street Football Tournament

Our target is to have 50 civil servants at provincial, district or city level government offices improve their TOEFL score." The Australian Embassy awarded Rumah Cemara with a A$10,000 Allan Taylor Sports Grant to help run the event.

The Australian Embassy congratulated on Tuesday the League of Change, Indonesia`s first national street football tournament, for using sport to give opportunities for marginalised communities around the country.

"Football is a sport close to the hearts of many Indonesians and a great way to educate people about complex social issues," said Ambassador Greg Moriarty.

Eight provinces were represented at the three-day tournament organised by Rumah Cemara, a Bandung-based organisation that works to increase the quality of life and reduce stigma towards people living with HIV, the Australian said in its official website here on Tuesday.

The Allan Taylor Sports Grant is sponsored through the Australia-Indonesia Institute and is designed to further develop sports in Indonesia. The late Allan Taylor (a former Australian Ambassador to Indonesia) was a keen sportsperson.

The President Post

A2 February 12, 2012

www.thepresidentpost.com

Opinion BOOSTING CREATIVE ECONOMY

The Presidential Instruction defines Creative Economy as comprising 14 creative industries considered as its main pillars, namely advertising, architecture, art and antique marts, handicrafts, design, fashion, film, videos and photography, interactive games, music, art performances, publishing and printing, computer services and software, radio and television, and research and technology.

In the Strategic Plan to be implemented until 2014, contribution of creative economy and industries to national GDP is targeted to increase from 7.5% in 2011 to 8% in 2014, with contribution to employment during this period rising from 8% to 8.75%.

By Tuti W. Sunario

n October 2011, when President Susilo Bambang Yudhoyono reshuffled the cabinet, Creative Economy was moved from the Trade Ministry and placed in tandem with Tourism, while Culture in the former Ministry for Tourism and Culture was returned to the (present) Ministry for Education and Culture. The appointed minister entrusted to lead the new Ministry for Tourism and Creative Economy was no less than DR. Mari Elka Pangestu, former Minister for Trade, who, nota bene pioneered Creative Economy at the Trade Ministry of Indonesia. This appointment was enthusiastically welcomed, especially by the creative world, from remote villages to renowned artists, who viewed this as a political recognition of their work. They hope, of course, this sector will receive a boost in the coming years. Indeed, to develop Creative Economy, President Yudhoyono had issued Presidential Instruction No. 6/2009, instructing 27 ministries and state institutions together with local governments to jointly develop Creative Economy. The Presidential Instruction defines Creative Economy as comprising 14 creative industries considered as its main pillars, namely advertising, architecture, art and antique marts, handicrafts, design, fashion, film, videos and photography, interactive games, music, art performances, publishing and printing, computer services and software, radio and television, and research and tech-

nology. In order to develop them, a special Coordinating Team was set up chaired by Coordinating Minister for Public Welfare with Coordinating Minister for the Economy as co-chair. Appointed as Executive Chair is Minister for Trade with co-chair the Minister for Industry.

the directorates for electronic and print media, digital media and design and architecture. The Ministry will also have four Expert Advisors, in the protection of diverse creative expressions, service economy, inter-institutional relations, and in research and technology.

What is Creative Economy?

On January 4, 2012, Minister Mari Pangestu explained that the Creative Economy Sector has the vision to raise the quality of life of the people, boost tolerance, and create added value. Actions following this vision include raising competitiveness and added value, institutional development, appreciation and implementation of the law, joint and sustainable promotion, development of human and capital resources, development of technology, as well as access to funding. “I realize that the two main challenges facing Creative Economy are property rights and access to funding”, said Minister Pangestu. “We will undertake coordination and cooperation to strengthen the protection and implementation of property rights to be more effective, and facilitate access to funding through matchmaking.” Through such actions it is expected that Creative Economy will not only increase the country’s foreign currency income, but also domestic consumption of creative products and services, thereby raising employment and contributing added value to the national

While everyone knows what creativity is, it is however not so clear when it comes to what is actually meant by Creative Economy. “Creativity”, says John Howkins, in his book The Creative Economy, “is not in itself an economic good, but in its application it can become so”. Talent and innovations are the productive elements in the creative process and the magic ingredients in the creative economy. Howkins includes individual intellectual property rights, patents, trademarks and design rights.

econo m y, and boosting Indonesia’s international image and drawing investments to the sector. In the Strategic Plan to be implemented until 2014, contribution of creative economy and industries to national GDP is targeted to in-

crease from 7.5% in 2011 to 8% in 2014, with contribution to employment during this period rising from 8% to 8.75%.

The President Post

T o implement the program, the Ministry will have two new Director Generals. One is in charge of arts and culture by leading three directorates on films, performances and music, and the second is in charge of media, design and research and technology overseeing

On its side, the United Kingdom Creative Industries Task Force (1998) defined “Creative industries as those industries which have their origin in individual creativity, skill and talent, and which have a potential for wealth and job creation through the generation and exploitation of intellectual property and content” The Indonesian Trade Ministry defined Creative Economy as “a new economic era which intensifies information and creativity that rely on the stock of knowledge of human resources as main production ingredients in its economic activities.”

The President Post

SAVE

6 Issues

Rp. 120,000

12 Issues

Rp. 216,000

10%

18 Issues

Rp. 306,000

15%

24 Issues

Rp. 384,000

20%

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

PERSONAL INFORMATION Name

Mrs

Renew Address

Home

Office Postal Code

Date of Birth Position

Phone

Jabodetabek

The President Post

Our creative human assets are abundant, but to adjust them to meet the criteria drawn up by the international world to compete in today’s global world needs massive re-education. Thus “the creative economy” should not only be seen solely as an administrative function of government to benefit industry, but should ideally be made into a powerful drive to develop the nation to meet the challenges in this fast changing global world.

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

Company

YES! I WOULD LIKE TO SUBSCRIBE

Based on the above, therefore, it is clear that at the heart of the matter is the human mind and his or her creativity. But the mind’s products, whether they are tangible or intangible, have an economic value only when these are traded. As such, I believe Indonesia needs to make a paradigm shift to be able to become a competitive player on the global scene in this era of the creative economy.

The President Post - Circulation Departments

THE SPIRIT OF INDONESIA

SUBSCRIBE NOW

On the other hand, UNDP and UNCTAD, in “The Creative Economy Report (2008)” stated that: “In the contemporary world, a new development paradigm is emerging that links the economy and culture, embracing economic, cultural, technological and social aspects of development at both the macro and micro levels. Central to the new paradigm is the fact that creativity, knowledge and access to information are increasingly recognized as powerful engines driving economic growth and promoting development in a globalizing world. There is thus an economic aspect to creativity, observable in the way it contributes to enterprenuership, fosters innovation, enhances productivity and promotes economic growth”

Mobile Email

PLEASE FAX THIS FORM AND PAYMENT RECEIPT TO +62 21 572 7338 FOR MORE INFO PLEASE CALL +62 21 572 7337

What other business newspaper do you read?

PAYMENT METHODS Please start my subscription from

PUBLIShED BY PT Sarana Pratama Pengembangan Kota ADvISOR Ali Basyah Suryo

LAYOUT & DESIGN Mohamad Akmal

CEO & EDITOR IN ChIEF Rachmat Wirasena Suryo

PhOTOGRAPhER Heros Barasakti

CONTRIBUTORS Atmono Suryo Cyrillus Harinowo Hadiwerdoyo Thomas W. Shreve Jeannifer Filly Sumayku Eka Putri

hEAD OF SALES & MARKETING Detia H. Rais

EDITORIAL & CIRCULATION DEPARTMENT Srimay Noviani

Fax

WEB DEPARTMENT Reza Ganesha Partakusuma

Please transfer to: Bank OCBC NISP Capitol Cikarang Branch 101.010.00016.5 Account Name PT. Sarana Pratama Pengembangan Kota

The President Post

www.thepresidentpost.com

February 12, 2012 A3

Perspective Global Investment Flows: Indonesia Catching Up Indonesia has been catching up quite significantly in 2011. Investors were no more sitting on the fence as happened before. It is now up to Indonesia to make it possible for this upward trend to continue in the future. By Atmono Suryo

GLOBAL TRENDS

he economic and financial crisis has an adverse effect on global capital flows, particularly during 2008-09. But as of 2010, the situation had begun to change. According to UNCTAD, global foreign direct investment flows rose by 5% in 2010 albeit still below the 2007 pre-crisis level. In the area of global investment there are a number of fundamental developments which are of great importance for Indonesia, which is in the process of promoting greater investment flows: • Notwithstanding the economic financial crisis, FDI has not disappeared completely as was happening with other sources of global finance; • It may have gone down as happened during the crisis, but it is still available and will return as soon as possible when conditions are better; • In a relatively short time global FDI rose by 17% in 2011 compared to 2010. It shows that FDI has a great deal of flexibility—the area of FDI is still an attractive business undertaking; • An important point to note is that there is now a shift on the side of the recipient countries. It

is no more the advanced countries which dominate the market. • It is now the turn of the developing countries, which are now the ones that have a greater say. In fact, developing countries begin to absorb half of global FDI flows in 2010. • Some emerging countries have now become good suppliers of FDI; they are coming from Asia as well as from Latin America and the Gulf region. This will give Indonesia a greater choice in attracting FDI’s. Despite the economic and financial crisis global FDI rose by 17% in 2011 compared to the year 2010. It is estimated that FDI flows will continue to increase in 2012 to around $1.6-1.7 trillion and $1.9 trillion in 2013. An important trend to be noted by Indonesia is that developing and transition economies start to absorb half of global FDI inflows in 2010. South-East Asian countries are rated to be the best performers after experiencing a slide in 2010. The largest portion went to developing countries in Asia, which rose by 11% in 2011. Sharp increases took place in 2011 in a number of ASEAN countries, in particular Indonesia, Malaysia and Thailand.

Indonesia’s position in 2009-10

One would recall that for quite

FIGURE 1: Top Host Economies for FDI in 2011-2013 0

10 20 30 40 50 60 70 80 90

China United States India Brazil Russian Federation Poland Indonesia Australia Germany Mexico Vietnam Thailand United Kingdom Singapore Taiwan Province of China Peru Czech Republic Chile Colombia France Malaysia Source: UNCTAD

a number of years (before 2010) Indonesia had difficulties to attract FDI. As they often said at that time “Investors continue to sit on the fence waiting for better times to come”. Many years were just lost at that time on account of the non-conducive investment climate in the country. The situation has now changed for Indonesia. Among the emerging countries, about nine are within the top 20 recipients, namely China, Hong Kong, China, Brazil. Singapore, Saudi Arabia, India, Mexico, Chile and Indonesia (with $13 bln). During 2009-2010 Indonesia was still at the bottom of the list of the top 20 recipient countries. This situa-

tion is now beginning to change in the right direction.

IMPORTANCE OF FDI

In terms of attracting foreign FDI’s, Indonesia is being considered as a remarkable potential and investment destination. In practice, however, the country is often considered as a risky. As investors often say, “Nothing is certain in this country.” FDI has its positive sides but also its weaknesses and political risks. As is the case with trade, the area of Investment Flows is also an area of fierce competition. Developing countries are at present very keen to attract FDI’s, as

Indonesia is not the only country in need of FDI. Looking from the positive side of FDI, one can identify a number of positive points such as: • FDI is a source of economic development and modernization; in addition to exports, this is now recognized by most of the developing countries; • FDI provides capital on top of domestic investment, which is often in short supply in developing countries—it also ensures income growth; • Importantly, FDI brings technology and productivity gains, which are needed by the emerging countries; • lt also provides high-level job creation for many developing countries, including China, Brazil, Mexico and many other countries in East Asia and Latin America. • FDI is an asset to the host countries. It forms a part and enlarges the country’s total GDP. It is well recognized that FDI has its weaknesses. For one, FDI may push aside or even squeeze out the weak domestic investors. But every country has its own way to protect its interests.

CURRENT TRENDS

It is quite amazing to see how Indonesia’s position has changed since around 2010. This is a remarkable achievement on the side of the investment coordinating body, BKPM. According to UNCTAD, a number of countries are considered to be top pontential recipients, which include Indonesia.

Investment realization

The following BKPM data (Fig-

ure 2) show that the cummulative investment realization January-December 2011 has reached Rp 251.3 trillion, consisting of Rp 76.0 trillion in domestic direct investments (PMDN) and Rp 175.3 trillion in foreign direct investments (PMA). The data confirm that Indonesia has been catching up quite significantly in 2011. Investors were no more sitting on the fence as happened before. It is now up to Indonesia to make it possible for this upward trend to continue in the future. The writer is former ambassador to the EU

Figure 2: The cummulative investment realization (January-December 2011) PMDN realization in five largest sectors Food Crops and Plantation

Rp 9.4 trillion

Paper and Printing Industry

Rp 9.3 trillion

Electricity, Gas and Water Supply

Rp 9.1 trillion

Transport, Storage and Communication

Rp 8.1 trillion

Food Industry

Rp 8.0 trillion

Realization of PMA based on the sector (five biggest) : Transport, Storage and Communication

$3.8 billion

Mining

$3.6 billion

Electricity, Gas and Water Supply

$1.9 billion

Metal, Machinery and Electronic Industry

$1.8 billion

Chemical and Pharmaceutical Industry

$1.5 billion

PMA realization based on countries (five biggest) Singapore

$5.1 billion

Japan

$1.5 billion

USA

$1.5 billion

The Netherlands

$1.4 billion

South Korea

$1.2 billion

Source: BKPM

The President Post

A4 February 12, 2012

www.thepresidentpost.com

The Economy ECONOMIC UPDATES

BI: 2011 Payments Balance Posts $11.9b Surplus

Govt to Offered Five Series of Sharia State Bonds The government has offered five series of sharia state bonds (sukuk) worth Rp1 trillion in an auction on February 14 to meet part of financing target in the 2012 state budget. Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said on Tuesday four of the five series of sharia state bonds would be project-based. They are PBS002 and PBS004 which are new issues and PBS002 and PBS003 which are the reopening of the existing issues. The other sharia state bond is series SPN-S 15082012 which is also new issue, he said. The sharia state bonds series PBS001 due on February 15, 2018 and series PBS002 due on January 15, 2022 will be issued at a yield of 5.45%, he said. Meanwhile, the sharia state bonds series PBS003 due on January 15, 2027 will be issued at a yield of 6% and series PBS004 would mature on January 15, 2037, he said. The underlying assets of the four series of sharia state bonds are projects or activities in the 2012 state budget, he said. The sharia state bonds series SPN-S 15082012 due on August 15, 2012 will be issued at discount yield and the underlying assets of the sharia state bonds are state assets in the form of land and building, he said.

Domestic Consumption Expected to increase 9.1% www.antaranews.com

Domestic consumption is predicted to grow 9.1% to Rp4,124 trillion in 2012 with the trade, hotel and restaurant sectors as the main engine, Trade Minister Gita Irawan Wirjawan said.

Business agents could take advantage of strong domestic consumption to increase the supply of their products to and the share of Trade Minister Gita Wirjawan their products in the domestic market, he said at a working meeting with the House of Representatives Commission VI here on Monday. The government was trying to encourage the public to have better appreciation for domestic products as part of efforts to increase the use of locally-made goods, he said. The effort to improve the public`s appreciation for domestic products had been made by among others launching "I Love Indonesia" (ACI) movement and improving Indonesian image at home and abroad, he said. The government also had begun implementing a program designed to increase the use of domestic products among others by encouraging state agencies to use more domestic products in the procurement of government goods and services, he said. In addition, he added the government was also trying to control the import of goods that had the potential to lower the competitive edge of local products.

On a quarterly basis, Indonesia`s payments balance showed positive performance in the first and second quarters of 2011 among other things because export commodity prices were still rising and foreign portfolio investments flowing in briskly.

www.infobanknews.com

spite weakened world demand, said Dyah NK Makhijani, a BI official in charge of strategic policies.

The capital and financial transactions surplus stemmed from increases in direct foreign investment flows and in disbursement of the private sector`s foreign loans in conjunction with a conducive investment climate and a well preserved macroeconomic stability, she said. As a result of those conditions, the amount of Indonesia`s foreign exchange reserves rose from $96.2 billion at the end of 2010 to $110.1 billion or the equivalent of 6.4 months of imports and sovereign debt repayments a year later.

The current transactions surplus was supported by the country`s export performance which remained fairly high de-

On a quarterly basis, Indonesia`s payments balance showed positive performance in the first and second quarters of 2011 among other things because export com-

ndonesia's balance of payments in 2011 recorded a surplus of $11.9 billion consisting of current, capital and financial transactions, a Bank Indonesia (BI) or central bank official said.

modity prices were still rising and foreign portfolio investments flowing in briskly. In the third quarter, the payments balance showed a deficit , especially as a consequence of the financial crisis in Europe which triggered a reverse flow in foreign portfolio investments. Negative pressure on the payments balance diminished in the fourth quarter after foreign portfolio investors returned and disbursement of private sector foreign loans rose significantly. Allthough as a whole, the payments balance performed better in the fourth quarter, there was a deficit in current transactions. The deficit of about 0.4% of Gross Domestic Product happened because imports continued to rise on strong domestic demand and exports declined on weakened world demand for the country`s export commodities.

RI Forex Reserves Reach $112b in January Indonesia`s foreign exchange reserves as of January 31, 2012 stood at $112 billion, enough to finance imports and foreign debt repayments for 6.2 months, according to the central bank. This figure represents an increase of about $2 billion, compared to $110.123 billion in the year ended December 31, 2011, head of Bank Indonesia`s Public Relations Bureau Difi A Johansyah said here on Thursday.

Quoting the results of a meeting of the bank`s board of governors, Difi said the country`s balance of payment in the first quarter of 2012 was expected to record a surplus, though revealing a lower trend. However, current transactions were expected to suffer a deficit, along with declining export growth, though imports would remain high thanks to strong domestic demand.

The surplus of the first-quarter balance of payment would be fueled by capital and financial transactions owing to foreign direct investment (FDI) inflows and an investment portfolio which were expected to increase as a result of strong fundamentals of the domestic economy amidst global economic uncertainty, Johansyah said. Also, the attainment of the investment grade was expected to strengthen positive sen-

timent towards the Indonesian economy, he said. On the domestic side, the central bank`s board of governors believes the Indonesian economy still has strong resistance to the global crisis, though it would grow at a slower pace amidst the declining prospects within the global economy. He noted that the Indonesian economy was projected to expand 6.5% in the first quarter of

2012. In 2012, domestic economic growth was expected to hit the lower level of the economic growth forecast of 6.3-6.7%. The 2012 economic growth would be fueled by strong household consumption and investment. This strong household consumption would be driven by high purchasing power thanks to the government`s effort to control the inflation rate, Johansyah said.

The President Post

www.thepresidentpost.com

February 12, 2012 A5

The Economy Govt to Optimize Spending To Boost Growth: Official Coordinating Minister for Economic Affairs Hatta Rajasa said the government would optimize its spending to boost the country`s economic growth in 2012. "I think we must admit that the Indonesian economy would grow more than 6.5% last year if the government spending could be optimized. We lost 0.1-0.2% of the remainder. This is one of things we have to improve," he said following a coordination meeting at his office here on Monday. The Central Statistics Agency (BPS) said earlier in the day the Indonesian economy grew 6.5% last year, fueled by exports which grew 6.3%, household consumption 2.7%, government spending 0.3%, physical investment 2.1%, exports 6.3% and imports 4.8%. "If the government spending could be optimized our economy might ex-

Super Luxury Apartments Still on Demand. Current prices of super luxury apartments in Jakarta are in the range of Rp 26-35 million per square meter or Rp 7 billion up to Rp 17 billion per unit. The size of this segment until the end of 2011 is 6%, or about 4,829 units from the total supply of 82,000 units of apartments in Jakarta. Super luxury apartments are rich crisis-immune buyers. The President Post/Nandi Nanti

Non-oil/gas Manufacturing Industries Grow 6.8% in 2011 www.antaranews.com

dustries. If we want to build an automotive plant it must be connected with component industries and other industries," he said. The connectivity between large industries and supporting industries must be applied to all industrial sectors, he said. "Only by doing so can they grow together," he said. He said the government would not tolerate any large investor which did not involve local entrepreneurs to support its business activities. "They must involve local companies. That is my request," he said.

ndonesia`s non-oil/gas manufacturing industry grew 6.8% last year compared to 5.1% a year earlier, Industry Minister MS Hidayat said. "No negative growth is recorded today. I think 6.8% is the maximum average growth of the manufacturing industry," he said here on Tuesday. Data from the Industry Ministry show all non-oil/gas industrial sectors recorded positive growth last year, with the base metal, iron and steel industry taking the lead with 13.06%, followed by food, drink and tobacco industry 9.19%, textile, leather product and footwear industry 7.52%. The growth of all the non-oil/ non-gas industrial sectors was expected to remain high this year.

Industry Minister MS Hidayat

No negative growth is recorded today. I think 6.8% is the maximum average growth of the manufacturing industry."

The industry minister expressed hope the growth of the non-oil/ gas industries would exceed 7% this year. The government would focus on encouraging the growth of domestic industries, particularly smalland medium-sized industries as well as supporting industries. "What is the most suitable now is that if large-sized industries have been well established they must be connected to supporting in-

Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Research and Technology Bambang Sujagad said the government should maintain the existing conducive business climate to allow the growth of non-oil/non-gas manufacturing industries to remain high. "Wage problems must be settled properly, otherwise they will affect the industrial growth this year, particularly the growth of labor-intensive industries," he said.

Meanwhile, Indonesia`s exports last year were valued at $203.62 billion. He said investment, exports, public consumption and government spending remained the engine of the domestic economic growth last year.

Coordinating Minister for Economic Affairs Hatta Rajasa pand at a range of 6.6 to 6.7% last year. I think both investment and exports had played an optimum role in the economic growth," Hatta said. Earlier, the Investment Coordinating Board (BKPM) announced foreign investment reached Rp175.3 trillion, domestic investment Rp76 trillion, bringing to Rp251.3 trillion the overall amount of investment in Indonesia last year.

National Development Planning Minister Armida Alisjahbana who is also chief of the National Development Planning Agency (Bappenas) said to boost the economic growth the government must encourage more investment flows. "If we want to see our economy growing more than 6.5% there must be a special strategy to boost investment. The investment inflows reached the highest record last year. If we want our economy to expand 6.7%, investment must grow 11%, exports 10%, and domestic consumption more than 5%. Therefore, there must be special focus on investment," she said.

BPS: Consumers' Business, Economic Conditions Improving Indonesian consumer business and economic conditions increased in the fourth quarter of 2011 compared to the previous quarter, the Central Statistics Agency (BPS) said. Business tendency index in the fourth quarter of 2011 was recorded at 106.92, meaning that the business condition improved with the business players` optimism lower than the previous quarter, acting BPS chief Suryamin said here on Monday.

The business condition improved in all sectors, except agricultural, husbandry, forestry and fishery sectors with business tendency index score 98.14, he said. "The highest increase in business condition was found in the construction sector with business tendency index score 111.51," he said. The business condition also improved as a result of an increase in business income with business tendency index score 108.27, use

of production capacity 105.53 and average working hours 106.32, he said. Suryamin predicted the agricultural, husbandry, forestry and fishery sectors would record the highest business tendency index score in the first quarter of 2012 with the service sector recording the lowest score. He said consumer tendency index in the fourth quarter of 2011 reached 108.44, suggesting an increase with consumer`s optimism lower than the previous quarter.

Minister Confident 2011 Growth Reaches 6.5% Finance Minister Agus Martowardojo said he firmly believed Indonesia`s economic growth in 2011 would reach 6.5% as assumed by the government. "We have good reason to believe it will be 6.5%. It will show our quality in 2011," he said here Thursday. Therefore, he said, he hoped the growth figure for the fourth quarter of 2011 to be announced by the Central Bureau of Statistics (BPS) soon would be the same as for the previous three quarters, namely 6.5%. After all, he added, in the third quarter of 2011 Indonesia was not yet directly affected by the crisis in Europe. About growth in 2012, Agus said he hoped it would reach 6.7% as assumed in the State

target of 6.7% but we must solve our problems regarding infrastructure, bureaucracy and corruption," he said.

Finance Minister Agus Martowardojo Budget due to efforts to improve infrastructure and the bureaucracy. "As a consequence of the crisis, global growth was lastly corrected to 3.3%. We stick to our

Meanwhile, economist Chatib Basri said the global economic recession had had little impact on Indonesia because its economy was backed up by a vast domestic market that had contributed to an increase in its Gross Domestic Product (GDP). "If our economic growth in 2012 ranges between 5.5- 6.5% and the inflation rate is 4-5%, we will still have a stable economy," Chatib said. He said the increase in Indonesia`s GDP was due to an expanding middle class which had boosted consumption and initiated new businesses that helped to fuel economic growth.

Future Global 100 Initiative: Business Platform for Leading Asia Companies By Jeannifer Filly Sumayku Companies in Asia that are looking to expand globally will now have a new platform to network and learn from their more successful counterparts. This platform is called Future Global 100 Initiative (FG100) and aims to bring together corporate movers in Asia and globally so that smaller Asian companies are able to tap on their expertise. The FG100 Initiative features an initial series of roundtables in seven locations, bringing more than 300 leaders of corporations and governments from around the world together to discuss global growth issues and define the characteristics of a FG100 Company.

ber 2011, Hong Kong on 3 November 2011 and now Jakarta. It is now the exclusive Initiative on the Future of a country’s economy, business and industry from a global and national perspective. It is also a recognized milestone in international business, establishing the world’s first authoritative agenda and documented reference on the future of the global economy, future global markets and future global businesses what we simply term the Future Global Agenda. The findings and consensus from each roundtable is encapsulated in a white paper. The findings will be published and distributed with policy makers in each market to better support the growth of the FG100.

Jakarta is the sixth city that has hosted the Future Global 100 (FG100) Initiative. Singapore was the first to host the FG100 Initiative roundtable on 4 July last year, followed by Mumbai on 4 August 2011, Shanghai on 7 September 2011, Kuala Lumpur on 5 Octo-

Lionel Lee, Chairman of Platinum Circle, said “The strong support for the FG100 Initiative from industry and government leaders around the world reflects the desire among them to play a role in the making of the Future Global Agenda. We want to increase the

voice of Indonesia in the Initiative and Agenda by including more Indonesian corporations and the government. Some of these corporations involved in the FG100 Initiative are on track to become global giants by as early as 2014. Together, our business and government leaders can have a neutral platform to address global issues, deliberate and define the route forward for the future”. Platinum Circle, a leading global business group involving corporations with annual revenues exceeding $100 million, governments and intergovernmental organizations, is gathering more than 350 global and national business leaders and government representatives from over 35 countries to address the future of the global economy, markets and business in 7 cities. Collectively, these corporations from more than 20 industries/sectors represent a combined annual revenue exceeding $3 trillion. Sam Ang, CEO, South East Asia, DHL Global Forwarding,

said “As ‘Future Global’ companies take their products and services to the international marketplace, they will experience a completely different set of logistics challenges. This is where DHL comes in – with dedicated support and innovative supply chain solutions customized to meet the specific needs of local companies going global, DHL is able to support these companies to overcome the challenges of internationalization.” DHL is the Strategic Partner of the FG100 initiative, a platform the company agrees is ideal for building an international community of new and potentially high-flying companies. Firmly believing that these ‘Future Global’ companies will form the next generation of market leaders, DHL recently established a team focused on developing and maintaining strategic partnerships with such companies. The growing number of organizations participating in this global Initiative include the World

From Left to Right: Chairman of Platinum Circle Lionel Lee, CEO South East Asia DHL Global Forwarding Sam Ang, and Ilham A. Habibie. Trade Organisation, Asian Development Bank, DHL, Bin Zayed Group, Silah Gulf, Coats, CCIC, Melewar Group, The Bank of East Asia, Singapore Technologies Engineering, PT Ilthabi Rekatama, Talent2, SAP, Neusoft Corporation, Development Bank of Singapore, Texas Instruments, Experian, Electrolux, ANZ, Karcher, Quintiles, Philips Electronics, Siemens Medical Instruments, Di-

mension Data, Hertz, Mastercard, Essar Group, Dalmia Group, Zydus Cadila, Tata Motors, Jubilant Lifesciences, JSW Ispat Industries, Tata Consultancy Services, Vendanta Aluminium, Bombay Stock Exchange, Lanco Infratech, Broad Group, Lenovo, Huawei Technologies, China Chamber of International Commerce, national parliaments and governments from Brazil, Mexico, Argentina,

Peru, Japan, Korea, Hong Kong, Malaysia, Singapore, Sri Lanka, New Zealand, Qatar, Zambia, UK, Portugal, Germany, Serbia, Italy, Spain, USA and Canada. After Jakarta, the next FG100 roundtable will be held in Australia (April 2012). Another group of 50 business and government leaders will attend to discuss the Future Global Agenda.

The President Post

A6 February 12, 2012

www.thepresidentpost.com

ASEAN The ASEAN-EAST ASIA Linkage East Asia has become a dynamic region, with all the risks involved. Hence, it becomes urgent for the leading countries in the region (particularly in the ASEAN+3 formation – ASEAN plus China, Japan and South Korea) to come up with a “grand design for East Asia”, to chart the road map and the rules of the game to be adhered to by all stake-holders.

By Atmono Suryo

Rising East Asia

ast Asia, which includes South East Asian countries (ASEAN), is a key region to watch. In terms of economics and business, East Asia is a very fast moving region—a region in transformation, from an underdeveloped region on its way to become a modernized and dynamic region. There is in East Asia the rapid growth of industrialization and the growth of services in many key areas, followed by changing trade structures and growth of trade in manufactures. In addition, there is the emergence of regional production networks operating in various industrial areas.

New Challenges and Opportunities

It is expected that the region will continue to be known as the Rising East Asia. This will undoubtedly bring new challenges but also new economic and business opportunities for Indonesia. The question is: will Indonesia be able to take advantage of the fast rising Asia? Statistics show that presently Indonesia”s position in East Asia

is rather weak, in particular in the area of competition and developing intra-East Asia trade and production networks.

Stages of Developments

Looking into East Asia’s experience in the past (especially after WW II), we would observe that East Asia’s present economic achievement has not come out of the blue. It went through a process which started some decades ago. An important point to mention is that there has always been close linkages between the countries in South East Asia (ASEAN) and East Asia. After World War II, East Asia has gone through various stages of developments, as follows: ASEAN—The formation of ASEAN in August 1967 was the very beginning of the process of change – it was the triggering of a new political-security stage for the Eastern part of Asia. It is recognized by the world community that in that regard Indonesia played a prominent role.

Flying Geese Formation—The “flying geese formation” of 19651990, with Japan in the lead, was considered as the making of the East Asian economic miracle. It

EAST ASIA TRADE East Asia with:

Trade Partner

2009

Total trade, US$B

East Asia

1834.5

Total trade, US$B

ASEAN

556.2

Total trade, US$B

SAARC

104.8

Total trade, US$B

PRC

767.2

Trade share %

East Asia

36.07

Trade share %

AEAN

10.94

Trade share %

SAARC

2.06

Trade share %

PRC

15.08

Source: Dr. Chia Siow Yue

was the wake-up call for East Asia to start up with its economic and business actions, and to be counted as an active player in the world economy.

and its access to WTO. Presently, China is taking the lead in East Asia’s spectacular rise to become the center and the driving force of the global economy

Economic Reform—The third stage was the !997-98 Asian financial crisis which was a setback in East Asia’s economic rise. But it was followed by the introduction of firm economic reform measures to cope with the crisis and to strengthen the economies of the region with success.

In all those stages ASEAN (with Indonesia as a key player) has played an important political-economic role. ASEAN until today has always been at center stage of the developments. It should continue to play such a role as ASEAN is accepted and respected by all concerned in the area.

Regional Cooperation—Since the years 2000, early steps were taken to forge East Asia’s financial cooperation followed by the strengthening of regional cooperation – it was the time of the formation of the ASEAN Community 2009–2015.

East Asian Miracle

Current Developments—The last stage concerns current developments in East Asia characterized by China’s reforms policies

At one time East Asia was called “the East Asian Miracle”. In the area of economics, the flyinggeese era with Japan in the lead was the start-up of East Asia’s profound emergence in the global economic and business arena. East Asia’s policies for rapid growth in “a Changing World Economy” was considered as “the making of a miracle” not anticipated by the world community.

This was explained in the World Bank policy research report of August 1993. The report states that from 1965 to 1990, 23 economies of East Asia already grew faster than all other regions of the world. Most of the achievements were attributed by eight economies, namely Japan and the four tigers: South Korea, Hong Kong, Singapore and Taiwan, China. And the three NIE’s (newly industrializing economies: Indonesia, Malaysia and Thailand). East Asia has grown three times as fast as Latin America and South Asia, and five times faster than SubSahara Africa.

The Making of a Miracle

The question is, what has made the eight economies to be in a position to gain such achievements? In making the miracle these countries achieved high growth by getting the basics right. Investment, rapidly growing human capital and

sound development policies were the major ingredients of their basic strategy. The eight countries are highly diverse in natural resources, population, culture and economic policies. Yet these countries were able to stimulate high growth in the region. It is a formation of economies with similar goals, objectives and basic policies, with Japan taking the lead.

Present Challenge

East Asia is a very large but a very diverse region. It is a region composed of countries with different backgrounds, different cultures and different stages of development. With such a composition, it is important for East Asia to have some common views and objectives; to have the same basic strategy and the right development policies; to identify the major ingredients needed in support of their basic policies. East Asia presently continues with a number of basic policies underpinned by a number of supporting elements such as trade and export growth policies, investment inflows, human development, openness to foreign technology, infrastructure development and promoting specific industries.

The Need for a “Grand Design”

To achieve another miracle in East Asia there seems to be the need for another “unifying formation” with China taking the lead and India on its side but with ASEAN still at center stage as a unifying force, all flying in the same direction with the same goals in sight. But not much is known where

Asia will be heading. “Quo Vadis East Asia?” is often being asked by many observers. As economies in the region move in formation it does not mean that they must be directly linked to each other. But it is important that they follow similar paths and to have the same goals and objectives. The market forces are the ones which have to be on the move to grasp the business opportunities open to them, but they must know where the region is heading to. With Asia’s economies growing fast and becoming more prosperous, interdependence is deepening in this part of the world. But also countries outside the region are increasingly interested to become part of East Asia’s dynamic growth. East Asia has become a dynamic region, with all the risks involved. Hence, it becomes urgent for the leading countries in the region (particularly in the ASEAN+3 formation – ASEAN plus China, Japan and South Korea) to come up with a “grand design for East Asia”, to chart the road map and the rules of the game to be adhered to by all stake-holders. Indonesia (with the support of ASEAN) is on the right track by announcing the need for a “Dynamic Equilibrium” policy. East Asia is a dynamic region, but it needs peace and prosperity with balanced growth to avoid frictions and growing disparities which are happening today in the global economy. The writer is former ambassador to the EU.

The President Post

www.thepresidentpost.com

February 12, 2012 A7

Around Jababeka Jababeka Entrusted to Build Morotai Island PT Jababeka Tbk, Taipei Economic & Trade Officer (TETO), and the local government of Morotai have officially signed a cooperation agreement regarding the development of Morotai Island on mid-February in Daruba city, Morotai, North Maluku. By Jeannifer Filly Sumayku

he cooperation agreement between three institutions was signed by President Director of PT Jababeka Tbk S.D. Darmono, Representative of TETO Andrew Hsia, and Regent of Morotai Rusli Sibua. Coordinating Minister for Economic Affairs M. Hatta Rajasa and Vice Chairman of DPR RI Taufik Kurniawan witnessed the signing. With the signing of the agreement, PT Jababeka Tbk, a property company established in 1989 with 'Beyond Property" and "City Developer" as its taglines, has been taking part in building the country. Now, it is entrusted to develop an area of 50,000 hectares in Morotai Island. Regional development will be done gradually. In the first stage, Jababeka will develop 15,000 acres into a new tourism destination in Indonesia. With its natural wealth that is still unspoiled, Morotai Island is set to attract local and foreign tourists. A wide range of marine, fishing, and tourism potentials in Morotai

MOROTAI

Island are being eyed by Taiwanese investors. Andrew Hsia stated that in the view of Taiwan investors, Morotai Island is a very strategic region and has the potential to be developed into the largest economic center in North Maluku and East Indonesia. Morotai Island, which is one of the most eastern islands in Indonesia, is targeted, like Batam Island, to be a developing area for tourism and industry, where both industries can synergize in building a national and regional economy. Supported by its strategic location and adequate infrastructure, Jababeka believes it will be able to attract investors. Morotai Island is also recorded in world history because it was once a battleground between Japan against United States and Australia (allied forces) during World War II. In 1943-1944, there were approximately 200,000 allied troops on Morotai. Numerous objects of World War II can now still be seen at Morotai, either on the land or deeply immersed in the ocean. The Morotai local government intends to

HALMAHERA

Coordinating Minister for Economic Affairs M. Hatta Rajasa (second from left), President Director of PT Jababeka Tbk. S.D. Darmono (third from left), Representative of TETO Andrew Hsia (right), and Regent of Morotai Rusli Sibua (left) during the signing ceremony of cooperation agreement on the development of Morotai, North Maluku.

nurture memories of World War II through the historical tourism activities. At the same time, the development of Morotai Island also has the full support of the central government, which considers the development of the region as the driving force of the local economy and a prime source of foreign exchange earnings. The support is seen with the signing of an inscription marking the building of

Morotai Island, which is one of the most eastern islands in Indonesia, is targeted, like Batam Island, to be a developing area for tourism and industry, where both industries can synergize in building a national and regional economy.

Morotai University by Hatta Rajasa. For its development, Morotai University is in collaboration with President University, a private university with international standards and built by Jababeka. Jababeka is convinced that the development of quality Morotai human resources (HR) will accelerate its sustainable development. The acceleration of Morotai’s development coincides with

the revival momentum of Morotai tourism through Sail Morotai 2012, themed “Toward a New Era of Pacific Regional Economy”, which is a continuation of the previous three activities, namely Sail Bunaken (2009), Sail Banda (2010) and Sail Wakatobi-Belitung (2011). Sail Morotai in 2012 will hold several events, including the Operation of Social Service and Health, Bhakti Kesra Nusantara & BUMN

Peduli Morotai, the Yacht Rally, National and International Seminar, Lintas Nusantara Remaja Pemuda Bahari, Local Region Potential Exhibition, RI Anniversary Celebration in the Outer Islands, Marine Sports, International Research Ship Expedition and Outer Islands Scientific Expedition, Cultural Performance and Tourism Attraction, Wawasan Kebangsaan and Bela Negara Campaign. The peak of the event will be held on 15 September 2012.

The President Post

A8 February 12, 2012

www.thepresidentpost.com

Education SAMPOERNA ACADEMY:

Comprehensive Education for Everyone The education system in Sampoerna Academy not only requires students to achieve high academic ranking, but also personal skills and abilities that show productivity, creativity, leadership and entrepreneurship.

The President Post/Heros Barasakti

By Jeannifer Filly Sumayku

That was the first IGCSE exam for Sampoerna Academy and they showed very satisfactory results. In fact, three students from Sampoerna Academy scored 100 (Percentage Uniform Mark), which means they are the best group in the world for the field test.

ampoerna Academy has announced that it is now opening wider opportunities for everyone who wishes to study in this international-standard boarding high school and those who wish to be the next high-caliber future leaders with good moral fiber. The payable system is applied to answer the demand for better quality of education in Indonesia. “Payable system students will also follow the selection procedures just like all scholars based on academic achievement, good character, and leadership qualities,” said Elan Merdy, Senior Director of Sampoerna Foundation. The education system in Sampoerna Academy not only requires students to achieve high academic ranking, but also personal skills and abilities that show productivity, creativity, leadership and entrepreneurship. It implements boarding school system for its students. The advantage of the system is that it optimizes academic learning, character development and social values, such as integrity, mutual respect, empathy, innovation, courageousness, open-minded and nationalism. These values are important elements needed to build prospective future leaders. Sampoerna Academy education system is supported by a strong academic environment

In 2011, Sampoerna Academy students achieved remarkable success in the international certification exam conducted by the University of Cambridge, IGCSE. Based on the cumulative percentage mark, Sampoerna Academy students managed to surpass the results of the world average mark for several subjects: Mathematics, Art & Design, Biology, Chemistry, Information Technology and Communication, Additional Mathematics and Physics.

that gives access to higher education, foreign and domestic, including career plan and strong alumni network. Sampoerna Academy also created relevant education, active, and is recognized internationally. The system also educates students to be responsible for their actions and to contribute to society. Sampoerna Academy is part of the realization of Sampoerna Foundation’s vision, which was launched in 2009. Up to now, the program has been implemented in four cities, namely Malang (af-

2012 SPRING EducationUSA Fair www.educationusa.or.id

EducationUSA is a global network of almost 400 advising centers supported by the Bureau of Educational and Cultural Affairs at the U.S. Department of State. The EducationUSA centers in Indonesia, Malaysia, Thailand, and Cambodia have planned a great tour for you to meet with students in their countries from March 25 to April 8, 2012. In coordination with the 2012 East Asia Pacific Triennial Conference, the tour will take place in Jakarta (Indonesia), Surabaya (Indonesia), Medan (Indonesia), Kuala Lumpur (Malaysia), Penang (Malaysia), Chiang Mai (Thailand), Bangkok (Thailand), and Phnom Penh (Cambodia). A college fair will be conducted in each of these cities, along with school visits where possible, and will also include a country briefing for tour participants. The “2012 Spring EducationUSA Fair” will take place at the following three cities: • JAKARTA Sunday, March 25, 2012 (2:00pm-6:00pm) • SURABAYA Tuesday, March 27, 2012 (4:00pm-8:00pm) • MEDAN Thursday, March 29, 2012 (4:00pm-8:00pm) As part of the widespread commitment, EducationUSA Fair committee will also arrange a Radio Talkshow in a major Radio Station within the Fairs City: Jakarta, Surabaya & Medan. To participate in this fair, please email to infoeas@aminef.or.id and request for the registration form. EducationUSA is a glob-

AMINEF EducationUSA Fair in Surabaya, October, 2011.

EducationUSA centers actively promote U.S. higher education around the world by offering accurate, unbiased, comprehensive, objective and timely information about educational institutions in the United States and guidance to qualified individuals on how best to access those opportunities. al network of almost 400 advising centers supported by the Bureau of Educational and Cultural Affairs at the U.S. Department of State. The Bureau of Educational and Cultural Affairs (ECA) fosters mutual understanding between the United States and other countries by promoting personal, professional, and institutional ties between private citizens and organizations in the United States and abroad, as well as by presenting U.S. history, society, art and culture in all of its diversity to overseas audiences. The foreign students of yesterday are becoming the world leaders today. EducationUSA centers actively

promote U.S. higher education around the world by offering accurate, unbiased, comprehensive, objective and timely information about educational institutions in the United States and guidance to qualified individuals on how best to access those opportunities. Millions of prospective students learn about U.S. study opportunities through EducationUSA centers each year. Centers are staffed by professional advisers, many of whom have first-hand experience having studied in the United States themselves, adhere to ethical standards, abide by the policy to refrain from working with commercial recruitment agents, and/or have received State Department-approved training about U.S. higher education and the advising process. EducationUSA advisers work in a variety of host institutions, such as Fulbright Commissions, IIE offices, AMIDEAST offices, American Councils, U.S. embassies and consulates, bi-national centers, universities, and public libraries who share a common goal: assisting students from their country in accessing U.S. higher education opportunities.

filiated with SMAN 10 Malang), Palembang (affiliation with SMAN South Sumatra), Bali (Sampoerna Academy) and Bogor (Sampoerna Academy). Sampoerna Academy is equipped with qualified teachers and high quality curriculum, which combines national curriculum and International General Certificate for Secondary Education (IGCSE) accredited by the University of Cambridge International Examinations, and English proficiency that enables graduates to qualify for entry into any

leading university in any Englishspeaking country. In 2011, Sampoerna Academy students achieved remarkable success in the international certification exam conducted by the University of Cambridge, IGCSE. Based on the cumulative percentage mark, Sampoerna Academy students managed to surpass the results of the world average mark for several subjects: Mathematics, Art & Design, Biology, Chemistry, Information Technology and Communication, Additional Mathematics and Physics.

Similar to most international schools, Sampoerna Academy also implements Student Centered Learning methodology which encourages students to be more active, stimulate creativity and create fun learning atmosphere for both teachers and students. This method facilitates students to attain the ability of independent learning equipped with science skills, process skills which support life skills. Students will undergo academic education in class for 8-9 hours with 45 minutes duration per lesson. Outside the classroom, students are encouraged to join student clubs activities such as music activities, Science Club, English Club, Community Service and other student clubs which suit students’ interest. As an extracurricular activity, Sampoerna Academy also implements the Youth Entepreneurship program to help students develop their interest and entrepreneurial spirit. In this program, students are given the opportunity to choose any business that they are interested in and get the chance to have first-hand experience in working there. Other supporting program is Learning to Live (L2L), a program designed to foster the

Teachers in the Sampoerna Academy are well-selected persons who have passed the required qualification standards. The main requirement is able to teach in English so that the learning materials based on IGCSE curriculum can be properly delivered. sense of curiosity, improve students’ confidence, and encourage them to become a good citizens. There are four pillars embodied in L2L program: Well Being, Creativity and Art, Community Service and Global Citizenship. Teachers in the Sampoerna Academy are well-selected persons who have passed the required qualification standards. The main requirement is able to teach in English so that the learning materials based on IGCSE curriculum can be properly delivered. Currently, some of the teachers already have Cambridge certification. In the future, all Sampoerna Academy’s teachers will hold the Cambridge certification through professional development programs. Teachers also participated in educational extracurricular activities.

Business

The President Post

www.thepresidentpost.com

Display until March 12, 2012 /// N0. 32

BUSINESS BRIEFS BNI Wins IFR Asia Award State-owned Bank Negara Indonesia (BNI) has received an award from the International Financing Review (IFR) Asia for capital market category. BNI was the only Indonesian bank receiving the award as the other recipients of the award were leading financial institutions and banks in Asia, the bank said in a press statement released on Thursday. The award was given to BNI in recognition of its corporate action through rights issue in which the bank managed to raise Rp10.4 trillion in funds at the end of 2010, the statement said. It was received by BNI chief financial officer Yap Tjay Soen at a function held at The Grand Hyatt Hotel in Hong Kong on Thursday.

MONEY TRANSFER SERVICE

Yap said the award was a manifestation of Asian market players` appreciation for the bank`s success in choosing strategy and convincing the financial market when the bank made the rights issue. “Thanks to hard work and close cooperation among all BNI personnel as well as support from all external stakeholders including market players` and investors` confidence, the rights issue made by BNI has yielded optimum fruit,” he said. IFR Asia is an influential capital market media which has wide circulation with Asia banking and investment community as its audience target.

Pertamina’s Profit Hits Record High of Rp24.6 t State oil and gas company PT Pertamina said its unaudited net profit reached an all time high of Rp24.6 trillion last year compared to Rp16.7 trillion in 2010. “The significant increase in the profit was fueled among others by an increase in global crude oil prices,” Pertamina Director of Investment Planning and Risk Management M. Afdal Bahaudin said after a hearing with the House of Representatives (DPR) Commission VII here on Tuesday. He said the increase in unaudited net profit was also driven by oil and gas production hike. According to data from Pertamina, the company`s income in 2011 reached Rp553.5 trillion compared to Rp417.9 trillion the year before. The 2011 income accounted for 231.45% of the target set by the company, he said. Earlier, Pertamina President Director Karen Agustiawan said the company applied aggressive strategy in the upstream oil and gas industry and profit strategy in the downstream oil and gas industry. Pertamina is planning to spend Rp52.8 trillion on investment this year. Nearly 80% of the funds will be used to develop the upstream oil and gas industry and 20% for the downstream oil and gas industry. The company is expected to produce 532,700 barrels equivalent to oil per day (boed), up from the realization of 465,300 boed.

Baturaja to Make IPO of Shares in Q3 State cement maker PT Semen Baturaja plans to make an initial public offering of its shares in the third quarter of 2012. “The number of shares to be floated is still being discussed. But it may be about 30% of our shares. We will try to make the IPO in the third quarter, the sooner the better,” PT Semen Baturaja President Director Pamudji Raharjo said on the sidelines of a meeting between 141 boards of directors and commissioners of state-owned companies and the State Audit Board (BPK) here on Tuesday. PT Semen Baturaja was in the process of appointing stock issue underwriters, he said. Proceeds from the IPO would be used to build a new plant to increase the company`s production capacity, he said, without elaborating on the amount of funds the company would receive from the IPO. He said the company would need around Rp2.5 trillion in funds this year to build a new plant in South Sumatra, among others. “The new plant will have an annual production capacity of 1.5 million tons. Preparations for the construction of the plant will be started next year and the plant will hopefully start operating in 2015,” he said. With the operation of the new plant, the total production capacity of the cement maker would increase to 3.5 million tons per year in 2014, he said. The company has set the target of cement production for 2012 at 1.3 million tons compared to 1.25 million tons last year.

The public’s high demand for fast money transfer service has made the number of remittance companies rising. Remittance companies are required to be Indonesian legal entities and must obtain a license from the Central Bank of Indonesia. The President Post/Nandi Nanti

HIPMI Endorses Esemka, Plans to Open 33 Outlets HIPMI wanted to invest in the Esemka car by setting up the dealerships across Indonesia. To realize its plan, the association would use its nation-wide network.

lans to mass-produce the studentmade Kiat Esemka car has received a thumbs-up from the Association of Young Indonesian Businessmen (HIPMI) as they prepare for the opening of 33 dealerships across the country this year. The Kiat Esemka refers to the SUV assembled by students at the state vocational high school (SMKN 2) in Solo, in cooperation with the owner of KIAT auto body shop in Klaten, both in Central Java. The students` achievement gained much attention after Solo Mayor Joko Widodo told the media he had acquired one Kiat Esemka and would use it as his official car. Nearly 80% of the materials and components used in the assembly of the 1,500cc vehicle were locally manufactured, while only 20% of the parts were imported. Jokowi, as the mayor is popularly called, said the Kiat Esemka car could be produced en masse this year at a total investment of Rp90 billion. “We will develop the Esemka car as a smallholder industry. If all the permits have been secured, we will only need Rp50 billion in investment to expand the plant and buy more

www.matanews.com

equipment, and another Rp40 billion to finance its operating expenses,” he said after attending a hearing at the House of Representatives Commission VI in Jakarta recently. HIPMI chairman Raja Sapta Oktohari To date, seven local and national investors have expressed keen interest in investing in the mass production of the Kiat Esemka car, he said. “We give a chance to both local and national investors. We will first choose which of the interested investors is the best,” he said. The mass production of the car made by PT Solo Manufaktur Kreasi and Solo Technopark would begin on a small scale and only after the car passes emission and road-worthiness tests and receives an identification registration number from the authorized agency. “If all matters related to the licensing could be resolved in February and March, we can produce 200 to 300 units,” he said, noting that nearly 200 to 300 units of the Kiat Esemka car could be produced per month. HIPMI chairman Raja Sapta Oktohari recently said that the association was preparing to open 33 dealerships to sell the

Our target for 2012 is opening one Esemka car dealership in each of Indonesia`s 33 provinces.” cars across the country this year. “Our target for 2012 is opening one Esemka car dealership in each of Indonesia`s 33 provinces,” he said. He added that HIPMI wanted to invest in the Esemka car by setting up the dealerships across Indonesia. To realize its plan, the association would use its nationwide network. “We will empower the networks of our members residing in all 33 provinces.” The association`s aim in opening the dealership was to help maintain consistent standards in the Esemka car`s production

in terms of after-sales service, repairs, and availability of spare parts. “We hope the quality of the home-made car will always be maintained beyond the moment it is sold,” Raja said, adding he still did not know how much money will be needed to open the 33 dealerships. He said HIPMI`s initiative was a reflection of its appreciation for a product made entirely in the spirit of the nation reaching economic independence. “We want the euphoria of the Esemka car making achievement not to be just momentary, but to continue,” he said. HIPMI also wanted to encourage all elements of the community, young businessmen in particular, to become enthusiastic about domestic autos. Since the first model of the car was launched a few months ago, orders for the low-cost auto have poured in and now reached about 5,000 units, Jokowi said. The orders include 20 units by Commander of the Army`s Strategic Reserve Command (Kostrad), Lt. Gen. Azmyn Yusri Nasution. “We hope the order for the 20 units of the car could be met by March 6, 2012. At least some of them, though not all, could be delivered during the commemoration of the Kostrad`s anniversary on that date,” he said when inspecting the car`s assembly plant in Solo early this month. Jokowi, who claimed to be the brand ambassador for the Esem-

ka car promotion, said all orders for Kiat Esemka car would be met in stages, according to the list of orders. Despite the influx of orders, the Kiat Esemka car manufacturer would not find it hard to meet them, he said. “The supply of components is enough and even larger than what is needed,” he said. The components for the Kiat Esemka car are produced by small and medium scale industries in several parts of the country, including Gombong, Magelang, Tegal, Purbalingga and Jakarta. Further, Representatives of the government, state-owned companies and the House of Representatives Commission VI at the hearing threw their weight behind the mass production of the Esemka car. “Political support from all parties is needed to develop a national car like this. We will find it hard to struggle alone,” Deputy Chairman of the House Commission VI Aria Bima said at the hearing. Deputy State Enterprises Minister for Strategic and Manufacturing Industries, Inranda Laksanawan, said the government was ready to support the development of a national car, including the Kiat Esemka car. Also, several state companies, such as PT Inka, PT Dirgantara Indonesia and PT Pindad, joined in supporting the development of Kiat Esemka car by providing training facilities for its future employees.

The President Post

B2 February 12, 2012

www.thepresidentpost.com

Business Minister to Scrap 20 State-owned Firms The number of stateowned enterprises (BUMNs) in the country is to be cut by about 20 so that only 120 will be left this year, State Enterprises Minister Dahlan Iskan said here Wednesday.

peaking to reporters after attending a limited cabinet meeting at the presidential office to discuss efforts to streamline state-owned companies, Dahlan said “their number will be reduced by at least 20.” The reduction would be effected mainly by merging companies engaged in the same line of business, he said. For example, PT Perkebunan Nusantara (PTPN), which now consists of 15 separate business entities, would be united into a single state-owned holding company. BUMNs engaged in would also be merged state-owned company, adding he hoped the

forestry into one he said, process-

es could be completed in one month`s time. The state enterprises ministry had already finished its preparations to conduct the mergers but the various ministries technically involved in the BUMNs` operations might need more time, he said. At Wednesday`s limited cabinet meeting, President Susilo Bambang Yudhoyono had emphasized the need to conduct the streamlining carefully, gradually and only to companies that were ready for it. He also asked that the streamlining effort be made through the most appropriate mechanism and not necessarily through mergers or acquisitions only.

Five State-owned Firms To Go Public in 2012

Chief economic minister Hatta Rajasa said five state-owned companies were ready to go public this year. “Out of nine proposed and after being discussed five would conduct an IPO and right issue with some notes,” he said after a coordination meeting to discuss privatization of state-owned companies here on Tuesday. Hatta said the five state-owned

tegic sales or acquisition of cooperation partners. “We hope this, along with our other strategic state-owned companies, will help develop our national telecommunication industry,” he said.

State Enterprises Minister Dahlan Iskan

The reduction would be effected mainly by merging companies engaged in the same line of business.” companies to go public are PT Industri Telekomunikasi Indonesia, PT Industri Sandang Nusantara, PT Industri Gelas, PT Semen Baturaja and PT Bank Tabungan Negara. He said PT Industri Telekomunikasi Indonesia has been agreed to issue new shares through stra-

Hatta said PT Industri Sandang Nusantara and PT Industri Gelas have also been agreed to sell shares through strategic sales. “Strategic sales are prioritized for state-owned companies that could manage the assets of PT Industri Sandang and PT Industri Gelas well and it will also be linked to a state-owned company`s subsidiary considered right for the acquisition scheme,” he said. He said PT Bank Tabungan Negara is also agreed to conduct a right issue of between 12 and 24% shares. Hatta said the government postponed the offering of shares of PT Perkebunan Nusantara (PTPN) VII because an IPO would only be agreed after the holding company is already running. “The essence is PTPN will offer maximally 30% shares after the holding company is running,” he said. He said the government has also

decided to postpone the IPO of PT Pegadaian because the pawnshop operator still has strong capital structure. “We have other considerations in view of the business. There are things that the government is concerned of. The company does not only have a mission of making profit but also other mission that we have to pay attention to. So we will postpone it until the right solution is found,” he said. With regard to PT Kimia Farma, he said it conduct a right issue after conducting a swap with PT Indo Farma so that the value of its shares would be stronger. “There are shares that they can swap based on our recommendations. Only after that a right issue could be done. In essence we agree it may conduct a right issue but only after a swap is done,” he said. Hatta said there were now two of three state-owned companies that would soon go public. “The President wishes more stateowned companies could go public so that the capital market would be motivated and we will find several state-owned companies that are feasible to conduct an IPO,” he said.

Transnusa to Open Routes to Dili, Darwin www.airnieuws.nl

PT Transnusa Air Services will soon open routes from Kupang in East Nusa Tenggara to Dili in East Timor, and from Kupang to Darwin, Australia, a company executive said. “To serve the Kupang-Dili and Kupang-Darwin routes starting in the fourth quarter of this year, we will purchase six Fokker aircraft,” Budhy Syahroni Karsidin, the airline’s business development manager, said here Saturday.

Since December 2011, TransNusa also has opened a direct flight route from Kupang to Makassar. “If during this the passengers from Kupang destination to Makassar (South Sulawesi) must first transit in Denpasar (Bali) or Surabaya (East Java) then we can do a direct flight from Kupang to Makassar,” he said. Meanwhile, for the route flight from Kupang to the big cities in Java, TransNusa is working with Sriwijaya Air. Transnusa was established in August 2005 to serve flights in East Nusa Tenggara by operating chartered planes owned by Trigana and Pelita Air Services.

Transnusa was established in August 2005 to serve flights in East Nusa Tenggara by operating chartered planes owned by Trigana and Pelita Air Services.

The business license states has 37 air routes in the eastern region of Indonesia. Up to now the airlines based in Kupang is already serving 50 percent of its routes as

mentioned in the business license especially in East Nusa Tenggara such as Flores, Ruteng, Labuan Bajo (Komodo Island), Maumere, Waingapu and Alor.

Regarding the routes which are often constrained by the weather, TransNusa recruited an expert from the Netherlands, Mike Binen, who has had experience for 25

years at Fokker factory, as Technical Director of TransNusa. “The purpose of recruiting an expert from the Netherlands is because we give priority to safety, securi-

ACE Insurance: Leading the Domestic Insurance Industry The President Post/Nandi Nanti

The ACE Group has grown rapidly by building long-term partnerships with its brokers, corporate clients and consumers in each of the world’s major insurance markets. In Indonesia, PT. ACE INA Insurance addresses the needs of the corporate, commercial and consumer segments through a wide range of products and

A consortium of financial institutions led by stateowned Bank Mandiri has agreed to extend $650 million in syndicated loans to mining company PT Aneka Tambang Tbk (Antam) under a project finance scheme. PT Antam is expected to use the loans to build the fourth unit of its feronickel processing plants with an annual production capacity of 27 thousand tons of nickel in East Halmahera, North Maluku province. Bank Mandiri Vice President Director Riswinandi in his capacity as the coordinator of the consortium signed a mandate letter for the financing of the project with Antam President Director Alwinsyah Lubis. The letter was later signed by representatives of other members of the consortium, namely Bank Rakyat Indonesia, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation at the Antam building

here on Tuesday. Riswandi said Bank Mandiri`s support for the project would hopefully assist Antam in increasing production capacity to meet the rising domestic need for nickel due to the steady growth of national manufacturing industries. “Mining is one of the sectors which give the greatest contribution to the national economic growth. Therefore, Bank Mandiri has committed itself to supporting any effort to strengthen the sector,” he said. In 2011 Antam issued the first phase of senior bonds worth Rp3 trillion for routine investment and business expansion. The company appointed Mandiri Sekuritas, Deutche Securities Indonesia and Standard Chartered Securities as bond issue underwriters. Bank Mandiri, along with BRI, Standchard and Deutsche Bank acted as standby buyers for the bonds in question.

ty and passenger comfort,” Budhy explained.

Since getting the air operator certificate (AOC) in the past year the government requires Transnusa to operate at least ten units of aircraft for flight routes in the eastern region of Indonesia. Until now Transnusa has four types of Fokker and two British Aero Space. “We use this AOC to welcome the competition in air transport business in ASEAN Open Sky,” Budhy noted.

PT. ACE INA Insurance is part of the ACE Group of Companies, one of the world’s largest providers of property and casualty insurance and reinsurance. Since its commencement in 1985, the ACE Group has focused on building global operations diversified by line of business and geography. It offers specialty products and services to clients in over 50 countries around the world.

Bank Mandiri Leads Syndicated Loans to Antam

services which includes Property, Casualty, Marine Cargo, Financial Lines, Energy & Utilities, Accident & Health and Commercial lines. Along with other ACE offices in the Asia Pacific region, PT. ACE INA Insurance has been growing rapidly since its inception in 1999. With a product offering as diverse as PT. ACE INA Insurance’s customer base, the company prides itself on its ability to meet varying client needs. PT. ACE INA Insurance creates and stands by its insurance for businesses and consumers. According to Peter van Ratingen, President Director of PT. ACE INA Insurance, one of the challenges for insurance companies in Indonesia, particularly in the area of microinsurance, is the distribution of insurance to the people because the cost of distribution can be more than the cost of insurance itself.

Peter van Ratingen, President Director of PT. ACE INA Insurance.

We are working closely with our clients to understand their risk management needs; adding value with our underwriting expertise and creating products tailored to the Indonesian market,”

“ACE’s primary goal is to continue developing its position as a trustworthy brand which fosters consumer confidence although it has been around for more than 40 years. We are working closely with our clients to understand their risk management needs; adding value with our underwriting expertise and creating products tailored to the Indonesian market,” he said. “We strongly believe in the growth potential of Indonesia. The increasingly stable environment and steady growth of Indonesia give us cause for optimism,” Peter added. Currently, ACE Indonesia has 100 full-time permanent employees and 200 telemarketers and call-center staff.

In 2007 TransNusa was trusted to handle ticket reservations of Mandala Air, while in 2009-2010, Transnusa took in five airlines, namely Riau Air, Avia Star, Mandala, Sriwijaya and Indonesia Air Transport. Transnusa daily flight routes also serve Denpasar-Mataram, Denpasar-Kupang and Makassar-Kupang.

BTN Plans for Rights Issue State-owned Bank Tabungan Negara (BTN) is processing a plan to conduct a rights issue of its shares this year, its president director Iqbal Latanro said.

The bank had yet to appoint financial adviser to conduct the rights issue, he said. “Only after we have received the green light from the government will we ask for approval from the House of Representatives, after which we can discuss the technical matters,” he said.

“In relation to the plan for rights issue we still have to take a number of corporate actions, including holding another coordination meeting with the State Enterprises Ministry,” he said on the sidelines of a function marking the bank`s 62nd anniversary here on Sunday.

He said rights issue was part of the bank`s strategic plan to increase the amount of credits channeled. “We will use proceeds from the rights issue to strengthen capital in distributing credits. We predict the rights issue will take place early in the second quarter of 2012,” he said.

The President Post

www.thepresidentpost.com

February 12, 2012 B3

Investment “Taiwan Investment in Indonesia Improving” Investment relations between Taiwan and Indonesia have shown an improvement within the last two years but continue to be enhanced while they have already led to a trade surplus in Indonesia`s favor.

ccording to the data obtained from the Taipei Economic and Trade Office (TETO) in Indonesia the trade surplus for Indonesia had reached 106.67% by July 2011. The figure was obtained after in 2009 the surplus reached $1.9 billion, then the figure increased in 2010 to $1.5 billion or up 22.83%. Taiwan`s representative to Indonesia Andrew Hsia said in an interview earlier this week with ANTARA that Indonesia is a “wonderful destination for investment” in terms of resources and the huge domestic market. Hsia claimed that Indonesia is now experiencing surplus from Taiwan, because Taiwan is buying a lot of natural resources such as gas and coal. Due to its lack of natural resources, Taiwan had to purchase several top commodities from Indonesia which is considered as having abundant resources. “Indonesia`s economy is perform-

The President Post/Nandi Nanti

ing so well, everybody knows that, so we are one of the countries interested in investing more in Indonesia,” said Hsia.

Improving Trade and Investment Prospects

Based on the data, Indonesian exports to Taiwan had also shown an improvement since 2009 valued at $5.1 billion then increased to $6.0 billion in 2010 and by July 2011 the figure reached $4.3 billion. Meanwhile, Taiwan exports to Indonesia also improved from 2009 valued $3.2 billion, then increased to $4.5 billion in 2010 and by July 2011 the figure reached $3.0 billion. The total trade value between Indonesia and Taiwan also increased from $8.4 billion in 2009 to $10.5 billion in 2010, and by July 2011 it was recorded at $7.3 billion. According to the data from the Indonesian investment coordinating board (BKPM) , by March 2011, Taiwan`s total investment had reached $14.0 billion. For 2011, Taiwan`s investment amounted to $5.11 million, the figure has shown an increase by 120% compared to the same period in the previous year of 2010. Taiwan also considered to be Indonesia`s number 9 foreign direct investment sources creating about one million job opportunity in Indonesia. Taiwanese companies now operating in Indonesia are namely Pao-chen Shoes co., ACER, Bank Chinatrust, President Food, PT Indo Tai-Chen Textile, Evergreen group and Na Ya Plastic Corp.

Taiwan`s representative to Indonesia Andrew Hsia

Indonesia`s economy is performing so well, everybody knows that, so we are one of the countries interested in investing more in Indonesia.” Indonesian Migrant Workers in Taiwan

In the manpower field, Taiwan and Indonesia on January 24, 2001 signed an MoU on placement of manpower which resulted in an increasing number of Indonesian migrant workers going to Taiwan. By August 2011, some 168,000 Indonesian migrant workers were working in Taiwan. The figure was the largest among Southeast Asian countries.

www.kompas.com

PT Toyota Astra Motor (TAM), will soon realize its plan to beef up its investment in Indonesia by about Rp5 trillion.

Toyota to Boost Investment in RI Toyota Motor Corp , through PT Toyota Astra Motor (TAM), will soon realize its plan to beef up its investment in Indonesia by about Rp5 trillion, the country`s top investment official said. “The company`s plan is a manifestation of its commitment to increase its production capacity in Indonesia,” Gita Wiryawan, head of the Capital Investment Coordinating Agency (BKPM), said here Tuesday.

Gita who is concurrently the trade minister said he and Industry Minister MS Hidayat would on Wednesday meet the vice chairman of Toyota Corporation, Katsuaki Watanabe. At the meeting they would discuss Toyota`s plan to increase its investment and production capacity and export of the company`s products. “They will not only supply the domestic market which continues to wid-

en but also overseas markets,” he said. Toyota would initially expand the production capacity of its plant in Karawang, West Java, although it also wants to build a plant outside Java. “The additional investment is expected not only to result in hike in car production but also to stimulate industries producing automotive components,” Gita said.

Spanish Company Eyes Rani Island’s Minerals Spanish company Repsol is interested in exploring the mineral potentials of Rani island in Aururi Islands subdistrict, Supirori district, Papua province, a local official said here Saturday. Rani island is one of three regions in Papua that had drawn the interest of the Spanish mining investor, a special staff for communications and development of Supiori district Yohanes Koroh said. He said the interest of the Spanish investor in Rani island`s minerral deposits was expressed by its representative in Indonesia, Rommy, and Papua Promotion House official Wekners Chips to Supirori District Chief Fredrick Menufandu and the Secretary of Supiori district Dairi Manulang.

“The interest of the Spanish investor in exploring Rani island`s mineral resources was positively responded to by the Supiori district administration which was ready to give it a licensing recommendation,” Yohanes Koroh said. According to the Spanish company`s representative, Supiori district administration`s readiness to give a licensing was the fastest in all districts/cities in Indonesia. Yohenes Koroh said although Repsol would initially only explore Rani Island`s` mineral resources, the activity was expected to improve the local people`s welfare. To benefit from its natural resources, Supiori district needed

both domestic and foreign companies to invest in projects to develop them, he said. Supiori District Chief Fredrick Menufandu`s program to invite foreign investors to develop the reggion`s marine potential was expected to get support from various elements of the community, Yohanes Koroh said, adding that besides the Spanish investor the administration had also received offers from foreign businessmen to invest in a mineral water project. Supiori district was formerly part of Biak Numfor district and Sorindiweri is now its regional capital.

Within two years, the number of Indonesian migrant workers increased by 35,000 from 140,000 in 2009 to 175,000 in 2011. Approximately 40% of the migrant workers in Taiwan are Indonesian and some of them working as fishermen. According to Hsia, Indonesian migrant workers in Taiwan are divided in two categories, namely care givers and fishermen. Most of the care givers were very happy with the way they are treated, enjoying Taiwanese minimum wages, covered by national health insurance so they can see doctors free of charge, and have a very good working time so they can spend time with their families, said Hsia. Indonesian migrant workers in Taiwan were the third largest group currency makers to Indonesia after Saudi Arabia and Malaysia, where Indonesian migrant workers are representing 45% of migrant workers in Taiwan apart from Malaysia, Philippines, Vietnam and Thailand. Hsia said the government of Taiwan is looking forward to discussing the matter with the Indonesian Maritime and Fisheries Ministry to sign an agreement for protection of Indonesian fishing crews who are working on Taiwanese fishing boats. “This MoU is important to provide proper training, regular employment channels which can lead to lower wages due to improper legal documents. Then the protection would be better,” he said.

Indonesia’s Investment Grade Interests Japanese Investors Bank Indonesia (BI) said Indonesia`s investment grade status has attracted the interest of Japanese investors. “The Japanese investors believed that the Indonesian economy is better than those of the Philippines and Vietnam,” head of BI`s public relations division Difi A Djohansyah said at the BI office in Jakarta, Wednesday. But he added the investment grade status only recently obtained from two rating insti-

tutions, namely Moody`s Investors Service and Fitch Ratings, did not automatically produced foreign funds in Indonesia. “The investment grade status did not automatically increase foreign funds. But at least it increased our self-confidence,” Difi said. Difi said some other aspects have affected the interest of the Japanese investors, especially those improving the Indonesian economy. “Specifically, the impact of Indonesia`s investment grade is still unknown. Still depending on

the confidence of foreign investors to the global economic situation,” Difi said. Difi added that the interest of the foreign investors is also dependent on the increasing Indonesian economic fundamentals which have now reached the level of the BRIC member countries (Brazil, Russia, India and China.) “Actually prior to the global crisis, Indonesia already deserved to enjoy a investment grade status,” Difi said.

Investment Expected to Remain Growth Engine in 2012 Investment is likely to remain the main engine of Indonesia`s economic growth in 2012 which is projected to reach 6.7%, a Finance Ministry official said. “Our focus in 2012 will be on spurring investment growth, either in the private or public sector by optimizing capital spending,” acting chief of the ministry`s fiscal policy board Bambang Brodjonegoro said here on Monday. To encourage private investment, the government must maintain the conducive investment climate by improving industrial relations between employers and employees, assisting inves-

tors in clearing land and ensuring business certainty, he said. “What we must pay attention to are industrial relations, investment climate in general, and legal certainty from local governments. If investment permits have been issued, then local governments should not do something harmful,” he said. He said the government must take advantage of the momentum of investment grade to attract more investment. In addition, he said the government would make an optimum effort to grant fiscal incentives to investors wishing to engage in the downstream industry and provide fiscal stimulus to boost the economy. Investment would play a greater role in boosting the economic growth in 2012

now that the country`s exports were expected to fall this year, he said. The other engine of the economic growth in 2012 would be domestic consumption, he said. Finance Minister Agus Martowardojo said earlier in the day the domestic economic growth in 2011 was mostly driven by investment which grew by 8.0%. Therefore, he said the government would continue to increase investment growth up to around 10% to achieve the target of economic growth target of 6.7% for 2012. The minister said “it is more important for us now to ensure that government can increase private investment in view of its role in the economy.” The Central Statistics Agency (BPS) reported on Monday the Indonesian economy expanded 6.5% in 2011.

The President Post

B4 February 12, 2012

www.thepresidentpost.com

Pictorial Events

PEC–NUS Key Principles and Experience in Infrastructure Practice and Policies in Emerging Markets Workshop The President Post/Nandi Nanti

The inaugural run of the PEC–NUS Key Principles and Experience in infrastructure practice and policies in emerging markets workshop took place on the NUS campus at the Mochtar Riady Building, NUS Business School, 2–3 February 2012.

he focus of the workshop was to aid in developing public-private sector cooperation in infrastructure for affluent members of the Indonesian business community and prominent government officials from the prestigious President Executive Club. The high-level two–day workshop was attended by 19 members from PEC and was aptly given its due recognition by one of Singapore’s ex-ministers and current chairman of Temasek Holdings, Mr. S. Dhanabalan, who opened the workshop. The workshop itself was designed and facilitated by Dr. Marleen Dieleman, and Dr. Ivan Png, who left no stone unturned in ensuring that the team of speakers and facilitators engaged were experts in their fields, came largely from multi-disciplinary backgrounds with current know-how and vast industry experience, to complement their lectures as well as to engage with the participants in a highly interactive and open sharing of views, ideas and experiences. Global and Asia-Pacific business examples and case studies from various industries were used to create awareness, inspire and challenge participants to think strategically and out-of-the-box with regards to strengthening and enhancing the participant’s views on developing public-private sector cooperation in infrastructure. The topics covered included private sector participation in infrastructure development (the Brazilian experience), energy, developing quality infrastructure, de-bottlenecking, key imperatives

for Indonesia in the financing of infrastructure projects, winning infrastructure project developments, optimizing funding options and funding successful implementation and the importance of institutions & governance. The presence of a conducive class-room environment, coupled with the workshop style design of the sessions, complete with panel discussions, allowed for the participants to engage in a free, unobtrusive manner that helped accelerate and achieve their main purpose of learning from, and sharing their best practices and experiences with, each other as well as from the facilitators. The panelists themselves consisted of senior management who came from companies/sectors such as Ministry of Finance, Open Net, Singapore Investment Development Corporation, Japan Bank for International Cooperation, Changi Airport International, PWC, KPMG & HSBC. The workshop was deemed a success and participants gained useful insights and take-aways on the various strategic & conceptual frameworks, which they hoped to utilize and implement in their businesses/government functions, or respective business unit strategy upon their return.

The high-level two–day workshop was attended by 19 members from PEC and was aptly given its due recognition by one of Singapore’s ex-ministers and current chairman of Temasek Holdings, Mr. S. Dhanabalan, who opened the workshop.

The event was participated by national business leaders, among others SD Darmono, Paulus Bambang WS, Nur Pamudji, RJ Lino, Tonny Warsono, Cipto Pramono, Utama Gondokusumo, Danny Rusli Utama, Ismanto Puspiworoko, Cristianto Wibisono, Djefri Cantono, Justin Colling, Dessy Aryani, Edy Korompis.

The President Post

www.thepresidentpost.com

February 12, 2012 B5

Pictorial Events

The Launch of THE REPORT Indonesia 2012 The President Post/Nandi Nanti

Oxford Business Group launched a review of Indonesia Economy 2012 at The Four Seasons Jakarta. The launching was done by Minister of Trade Gita Wirjawan and attended by among others businessmen Peter F. Gontha, Paulius Kuncinas, Andrew Jeffrey and professionals.

The President Post/Nandi Nanti

IABC Board members, business people and government officials attended this event. The idea of the program is to have a small group of IABC members and guests engaged in a social game of golf as well as to create networking. The event was held at Jababeka Golf & Country Club, Cikarang.

IABC President’s Golf Day ICCC Biztro at Mercantile Athletic Club

BNI and Waskita MOU Signing PT Bank Negara Indonesia Tbk (BNI) provided a loan facility of Rp 4.36 trillion to PT Waskita Karya (Persero). The loan facility consisted of working capital credit amounting to Rp1 trillion, issuance of bank guarantee as an assurance of project implementation of Rp 3 billion, issuance of letters of credit (L/C) profit in capital goods import approximately $40 million or roughly Rp 360 billion.

ICCC (Indonesia Canada Chambers of Commerce) held ‘Biztro’ business networking event at Mercantile Athletic Club, Jakarta. The event was attended by Alan Merten, President of ICCC (President PT. AJ Manulife Indonesia), Gary Plant, secretary general of ICCC, Robin Martin (Talisman), and other prominent figures. The event was sponsored by Talisman Energy.

The President Post/Heros

Next ICCC BIZTRO will be held on Thursday, March 15, 2012 06.00-08.30PM Venue: TBA To register, email to secretariat.iccc@gmail.com

TNI Barracks Ground Breaking at Santi Dharma Center, Sentul, Bogor

@america Idol

Public Lecture by DR. Roger Beachy

High School musical star Monique Coleman (center) with the contestants of @ america Idol. She was a member of the jury on the event, which was held at @ america Pacific Place Mall, Jakarta (4 February 2012).

DR. Roger Beachy a staff member of the U.S. Secretary of Agriculture gave a public lecture at the Southeast Asian Food & Agricultural Science Technology Center (SEAFAST) at Bogor Agricultural University (February 9, 2012).

Deputy U.S. Secretary of State for Political-Security Affairs Andrew Shapiro (left), and U.S. Ambassador to Indonesia Scot Marciel (second from left) and two representatives of the TNI marked the start of the building of barracks funded by the United States at Santi Dharma Center, the center of the Indonesia Peacekeeping Mission at Sentul, Bogor.

The President Post/Heros

The President Post

B6 February 12, 2012

Breakfast Dialogue Social Security Organization PT. Jamsostek will be transformed into a social security organizing body (BPJS) for workers and PT Askes will become the BPJS for health according to Law No. 24/2011.

By Jeannifer Filly Sumayku

â&#x20AC;&#x153;U

nder a new mandate, the BPJS for workers is required to provide pension benefits for both formal and informal workers, and this will take full effect on July 1, 2015,â&#x20AC;? said Hotbonar Sinaga, CEO of Jamsostek, at a breakfast dia-

logue held by The President Post at The Financial Club Jakarta (15/02/2012). Jamsostek currently provides Health Care Benefit, Retirement Security Program, Death Insurance, and Work-Related Accident Insurance. Meanwhile, BPJS Health will focus on providing health care services for all Indonesian citizens, including those who had

applied for Health Care Benefit with PT Jamsostek. BPJS Health is expected to operate in January 2014. BPJS Health will take over several health care programs such as Jamkesmas (community health insurance) and Jamkesda (regional health insurance). Anyone is welcome to become BPJS members as long as they pay contributions, including foreigners who have worked in Indonesia for more than six months,

employees and employers, individuals, and government institutions that employ civil servants. PT Jamsostek will still run its existing Jamsostek programs as mandated in Government Decree No. 36/1995 and Law No. 3/1992, until the BPJS for workers is working in full swing. To date, there are 34 million workers registered as Jamsostek members, yet only 10.6 million have active status.

www.thepresidentpost.com

The President Post

www.thepresidentpost.com

February 12, 2012 B7

International Indonesia-Russia Relations Bolstered Through Real Cooperation Agreement www.presidensby.info/Muchlis

Russia-Indonesia relations have gained a new momentum and become an important issue on the international agenda. By Jeannifer Filly Sumayku

ussian Ambassador Alexander A. Ivanov stated that RussianIndonesia relations proved to be highly potential. The ambassador spoke the outcome of the Russian diplomacy activities in 2011 and the Russian Embassy in Jakarta on a press conference devoted to the Russia’s Day of Diplomatic Service which was held at the Russian Ambassador’s residence in Jakarta. Russia-Indonesia relations have gained a new momentum and become an important issue on the international agenda. It is seen through active political contacts at the high and the highest level – bilateral meeting between D. A. Medvedev, President of the Russian Federation and Dr. Susilo Bambang Yudhoyono, President of the Republic of Indonesia which was conducted on the sidelines of the APEC summit in Honolulu, USA (November 12), a visit of Sergey B. Ivanov, Deputy Prime Minister of the Russian Federation to Indonesia (27 - 28 October), in the framework of which at the high-level meeting he discussed trade, economic and technical co-

operation with Hatta Radjasa, Coordinating Minister for Economic Affairs of the Republic of Indonesia. Participation of Sergey V. Lavrov, Minister of Foreign Affairs of the Russian Federation in the 6th East Asia Summit held in Bali (November 19) became truly historical as Russia for the first time took part in the work of the EAS as its full member. Practical realization of agreements made last year gave positive results. Trade volume between Russia and Indonesia in 2011 was 2.2 billion USD. Compared to Russia’s trade with some of Indonesia’s smaller neighboring countries, this figure does not represent the true potential of the countries’ economic cooperation. The Russia-Malaysian trade volume reached $4 billion in 2011. Signing of the contract between the Ministry of Defense of Indonesia and the JSC “Rosoboronexport” for the delivery of six more jets Su-30MK2 (December 29, 2011) considered to be a new step in the military-technical cooperation. Signing of the Memorandum of Understanding between “Kalimantan Rail PTE Ltd.” (a subsidiary of JSC “Russian Railways”) and the administration of

Alexander A. Ivanov Russian Ambassador Russians maintained their own views about each other rooted in the Cold War. Second, both countries are happy enough to maintain good trade relations with traditional partners like Japan, China, the United States and Western Europe, and they haven’t yet explored new opportunities beyond these established ones. Bilateral meeting between D. A. Medvedev, President of the Russian Federation and Dr. Susilo Bambang Yudhoyono, President of the Republic of Indonesia which was conducted on the sidelines of the APEC summit in Honolulu, USA (November 12) the province of East Kalimantan for the construction of the railway and associated infrastructure on the Kalimantan Island in Jakarta on February 7, 2012, should lead to creation of the largest investment project (More than $2), aimed to assist Indonesian partners to cope with the actual problems of the transport infrastructure development. The fact is both countries know

very well that thousands miles separate them and the road that connects the two countries has constructed more than 60 years ago. In the early 1990s, this road started to be repaired, until it was completed in 2003 when the two country leaders signed the Declaration on Principles of Friendly and Partnership Relations for the 21st century. In tourism, 100,000 Russians

enjoyed the beauty of Indonesia last year, compared with 80,000 in 2010. But this figure is minor compared with Thailand, where about 300,000 Russians enjoyed its sunny tropical beaches in 2011. What has kept the Russian-Indonesian relationship from reaching its full potential? First, both Indonesians and

Touching upon current issues of the international agenda, Ambassador paid special attention to the difficult situation in the Middle East and North Africa. Regarding situation in Syria, where Sergey V. Lavrov, Minister of Foreign Affairs of the Russian Federation, was on a visit on February 7, 2012, he said that Russia strongly opposes any violence against civilians and against military intervention by external forces to support one of the parties of the internal conflict, in order to avoid recurrence of the Libyan scenario.

Besides, the Head of the Russian diplomatic Mission underscored prospects of increasing cooperation within ASEAN and APEC, especially in view of Russia’s chairmanship in APEC in the current year and the coming Summit of the Forum in Vladivostok in September. A. A. Ivanov noted that Asia is one of the key foreign policy priorities of Russia, which is an integral part of the Asia Pacific region. The major task in this area is to be actively involved in shaping the regional security and cooperation architecture, as well as further embedding of Russia in the unfolding processes in the region’s political and economic cooperation and integration. In conclusion, Russian Ambassador answered the journalists’ questions pertaining to various aspects of international and regional agenda, Russian-Indonesian cooperation in energy, transport and peaceful space exploration and the current political situation in Russia in the view of the presidential elections to be held on March 4, 2012. The Embassy also organized a photo exhibition that featured the most memorable moments and achievements in the Russian-Indonesian cooperation in 2011, including the highest and high level meetings, exchanges between the Muslim communities, and further development of military-technical ties.

Hosted by

JOIN THE INDUSTRY LEADERS AT ASIA’S MOST IMPORTANT SECURITY AND DEFENSE EVENT IN 2012 The Government of the Republic of Indonesia

Jakarta Convention Center, Jakarta, Indonesia

The 2nd Annual Asia Pacific Security and Defense Expo held in conjunction with

The Jakarta International Defense Dialogue. The Marketplace for Security, Safety and Defense Technology Exchange. APSDEX is dedicated to:

Accelerating G2G, G2B and B2B bilateral and multilateral cooperation Promoting product development and technology advancement in defense, security and safety industries Creating a comprehensive platform for technology and services exchange Introducing your company, product and services to foreign governments and international delegations from 45 countries Over 10,000 qualified regional and Indonesian visitors Supported by:

In conjunction with the:

In cooperation with the:

Indonesian Armed Forces

Official Sponsor: Jakarta International Defense Dialogue

Indonesian National Police

National Search and Rescue Agency

Indonesian Defense University

Official Media Sponsor:

Ministry of Defense Republic of Indonesia

APSDEX’12/JIDD’12 Event Secretariat PT Infrastructure Asia, Jl. Teluk Betung #43A, Jakarta Pusat 10230 Indonesia T +62 21 391 3037 | F +62 21 391 3349 | www.jidd.org | www.apsdex.com | info@apsdex.com

Media Partners:

Indonesia Fire Service Association

The President Post

B8 February 12, 2012

www.thepresidentpost.com

Technology Samsung Galaxy Nexus:

This is Still Android The Galaxy Nexus is the best Android phone, heads and tails above anything else on the market. The speed, the new sleek blue-and-grayscale look, the new Google apps, the new and easier ways to manage what’s happening on your phone—there’s no contest.

www.digitaltrends.com

Apple stole Android’s swipedown notifications shade in iOS5, and while Apple’s is prettier, Ice Cream Sandwich seems to say “oh yeah? Enjoy the first generation. Here’s what we’ve done with years of practice.” There’s an embedded settings button in the shade, so you can jump in there and turn Wi-Fi or Bluetooth on and off, or change your brightness, or whatever, in one tap. You can swipe notifications away one by one—just tap and toss them off the phone.

he Nexus line is Google’s “reference line” of Android phones—each one (this is the third) is the first phone to carry the new version of Android, completely unencumbered by the custom interfaces tacked on by most other

manufacturers. They’re intended to be the purest version of Android of their generation. The Galaxy Nexus is the first with Android 4.0, called “Ice Cream Sandwich,” or ICS (Android code names use alphabetical dessert names—Cupcake, Donut, Eclair, Froyo, etc). More phones with ICS will come, and

soon—and they will have skins, like HTC’s Sense UI. But this is the phone Google wants us to think of when we think of ICS. The look of Android is quite different from before: it’s now cool and blue, with spare lines and black backgrounds. There’s a new, custom-made font. There are friendly animations. The buttons

Nikon Introduces D800 36.3-Megapixel Full-Frame DSLR in March Nikon has tweaked just about everything that could be tweaked in its predecessor, D700. At the heart of it is a 36.3-megapixel full-frame (FX format) CMOS sensor.

hen Nikon announced the D4 DSLR a while back, they made it very clear that they wanted it to be a fullfledged multi-media machine. That sentiment has been carried down a level with the new D800, which boasts many of the same video capture features in addition to its massive megapixel count. Nikon has tweaked just about everything that could be tweaked in its predecessor, D700. At the heart of it is a 36.3-megapixel full-frame (FX format) CMOS sensor. That’s coupled with the Expeed 3 image processor. As a result, it has a maximum resolution of 7360 x 4912. That’s roughly 150% the pixel count of Nikon’s flagship D3X DSLR. To help accommodate all that data, is has both an SD and a CF card slot. It doesn’t, however, accept the new XQD cards like the D4. But, the revamp doesn’t stop at the sensor and processor. It has a new 91,000pixel 3D Color Matrix Metering III system with an added emphasis on facial detection, so they claim it will perform better, even in tricky lighting situations like strong backlight. “Whatever the project, visionaries need a tool that is going to help them stay ontime and on-task. The Nikon

There are lots of nice little features, which you’ll discover as you go, ranging from NFC to a new unlock mode that recognizes your face to a new People app that collects info from all your friends. There are tons of goodies in here which you’ll discover as you use it.

The new buttons are great; they save space, but they’re also very functional, rotating when you want to rotate the screen, adding a menu button when you’re using an app that needs one, disappearing when you’re playing a game or watching a video.

D800 re-imagines what is possible from this level of D-SLR, to address the needs of an emerging and ever changing market; this is the camera that is going to bridge the gap for the most demanding imaging professionals, and provide never before seen levels of SLR image and video quality,” said Bo Kajiwara, director of marketing, Nikon Inc. “The D800 is the right tool for today’s creative image makers, affording photographers, filmmakers and videographers a versatile option for capturing the ultimate in still image quality or full HD content, with maximum control.” It has a 51-pount AF system, 15 of which are cross-type on a 3500FX autofocus center module. That promises to provide an improvement over the D700, but likely won’t be quite as snappy as its big brother, the D4. Nikon does promise that it will be able to focus in situations as dark as -2 EV, which we’ll gladly check out in our test lab. The native ISO range goes from 100 up to 6400, but it’s expandable down to 50 and up to 25,600. Unlike one of its other main competitors, the aging Canon 5D Mark II, the D800 has a builtin flash that works with Nikon’s Creative Lighting System, which means it can be used to control other Nikon speed lights wirelessly. That’s something we’re definitely glad to see.

have been moved to the screen itself, and shrunk to three: Home, Back, and Recent Apps. The camera app has been overhauled. All of the first-party apps, like Gmail and Maps, are new. Icons and folders are more three-dimensional. The keyboard is new. Google Plus is heavily integrated. Just about everything listed in the section above is a good change. But more importantly, Ice Cream Sandwich comes very close, dangerously close, to the ethereal goal of “just working.” It is fast and responsive as all hell. That is impressive technologically, but for humans, it’s more important as an element of a phone that feels like it’s working with you, not against you. There’s no lag: when you swipe, it moves. This is not as easy as it sounds; Android had a distinct lag between your finger and what was happening on screen, and throughout most of the Galaxy Nexus, that’s now gone.

www.outletphotography.com

But, in addition to all of the still photography stuff, there’s also the video capture. You can get 1920 x 1080 at 30p, 25p, and 24p. Drop down to 1280 x 720 and you can add 60p and 50p to the equation. It has full, uncompressed digital output via HDMI, which means serious film makers can use it with a capture device instead of going to a card and it even has the headphone jack film makers were so happy to hear about on the D4. Ultimately, it’s an extremely capable video machine. Because it has so much resolution and a full-frame sensor, the D800 offers several crop modes, including a 1.2x setting and a 1.5x DX setting, which still maintains a 15.4-megapixel resolution. It may not get a ton of use from the photo side, but with HD video not requiring the full sensor, it could come in very handy for motion picture shooting. In the end, the D800 really does seem to keep the focus on maximizing image quality. The new AF

system should prove quick, but with a burst rate that caps off at 4 FPS, it still leaves plenty of room to remember why the D4 is the top dog. The D800 will start shipping in late march for $2,999. That’s slightly more expensive than the D700’s $2,700 price, but you get a lot more resolution and the multimedia comparison isn’t even close. As a note, there’s also another version known as the D800E, which is the exact same camera, only the low pass filter has been removed. While the filter does combat aliasing, which is a distracting effect found in areas of repeating detail, it also slightly reduces the camera’s maximum fidelity. This is primarily something requested by studio or landscape shooters, but it also works to the benefit of some video shooters. The D800E will cost $3,299 and will ship in mid April.

Maps on Android are in a different league than anywhere else, as is Gmail. The browser has been redesigned, smartly. Tabs can be swiped-to-close, just like notifications or open apps. There’s a mode to request the desktop, rather than mobile, version of a site—ideal for the sites that, frustratingly, don’t provide such links for you. There’s a “save for offline reading” mode so you can read longer stories later, even when you’ve got no wireless signal. Mobile Flash, recently shuttered by Adobe, is not currently available on ICS—it may come later. The keyboard is great. It’s the right amount of sensitive, autocorrect is unobtrusive and helpful, and it gets what you’re trying to say. There are lots of nice little features, which you’ll discover as you go, ranging from NFC to a new unlock mode that recognizes your face to a new People app that collects info from all your friends. There are tons of goodies in here which you’ll discover as you use it. The Galaxy Nexus is made by Samsung, and feels like the Galaxy S, or the Focus, or any other modern Samsung phone. It’s wildly thin but it’s still light and plastic-y. The screen warrants some talk. It’s sized at 4.65-inches, which is just insanity. 4.3 inches has become the accepted size of a “big” phone. Partly that’s because a portion of the screen is devoted to the new “buttons,” and partly

it’s because the phone has a pretty small bezel. The extra space is nice for watching videos or reading Kindle books (suddenly a pleasant experience on a phone), and the screen itself is great: ICS mandates a true 720p resolution, and the Super AMOLED display is very clear. The camera’s speed is unparalleled—it’s very fast to shoot and then ready itself for the next shot. But the sensor in the Galaxy Nexus itself is surprisingly bad. It’s a 5MP shooter, and compared to photos from other Android phones like the Samsung Galaxy S II, the Nexus’s shots washed out, fuzzy, and without detail. The Galaxy Nexus will be released on Verizon’s network in the States, and it’ll boast 4G LTE, which is pretty killer. It won’t have a slot for expandable memory and rumors indicate it’ll probably have 32GB of internal storage on Verizon. Android is still not as streamlined as iOS or Windows Phone. Perhaps Android phone fans don’t want it to be. Ice Cream Sandwich is a big step forward, but there are still elements that feel redundant or messy. Having three ways to do something doesn’t make it easier to use; it makes it harder to learn the rules of the operating system, harder to understand why certain things work certain ways and thus harder to perform new actions for the first time. Some apps require a menu button, which will pop up next to the Recent Apps button at the bottom right of the screen. The Galaxy Nexus is the best Android phone, heads and tails above anything else on the market. The speed, the new sleek blue-and-grayscale look, the new Google apps, the new and easier ways to manage what’s happening on your phone—there’s no contest. With Verizon’s 4G, presuming the 4G doesn’t reduce the Nexus’s battery life to zero in a few hours, it’ll be a fine phone, and not just for dedicated Androiders.

SECTION

The President Post

Automotive

Display until March 12, 2012 /// N0. 32 www.thepresidentpost.com

By Nelly Angelina

he enthusiasm – it began to grow following the introduction of a Kiat Esemka sedan by Joko Widodo (Jokowi), the mayor of Solo – received a powerful boost recently when German Ambassador to Indonesia Nobert Baas promoted the car by driving it during a visit to the Central Java city. Ambassador Baas was reportedly impressed by the car, especially its engine and interior which were designed and produced by students of a Solo vocational school. The car’s production site is at Solo Techno Park (STP), which has for a few yeas cooperated with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) or German Agency for International Cooperation. The German government has pledged 28 million euros (Rp336 billion) in a combined package of soft loan and grant to boost Kiat Esemka’s Rp50 billion start-up capital for manufacturing what is expected to be Indonesia’s most successful national car.

Marlip

Tawon Mobira

Even with a Rp50-billion startup capital, Jokowi says, Solo can produce 300 Kiat Esemka sedans a month, so the German capital injection is sure to bolster production by some 600%. The mayor says the production center has received more than 5,000 orders and a number of local investors will participate once the prototype has been certified by the Ministry of Industry, Ministry of Environment, and Ministry of Transportation. Apart from Kiat Esemka, a number of domestically made cars have actually been introduced but they were less popular because of poor promotion strategy. Kiat Esemka became a hit in the market because it was promoted by Jokowi, Indonesia’s “Mayor of the Year” in 2011, who is a potential candidate from Indonesian Democracy Party-Struggle (PDI-P) for the Jakarta governorship. The most popular version is Esemka Rajawali, a 1,500cc engine car that has now become the official car of the Solo mayoralty. Following are some of the domestically assembled cars produced in different parts of Indonesia.

Marlip

This is an electricity-fed car developed by the Indonesian Institute of Science (LIPI) and distributed by PT Marlip Indo Mandiri. This small car is used for special purposes. Marlip Mosen Standard was made for transporting hospital patients, Marlip R410 and Marlip Smart for housing complexes, and Marlip City Car for use in the city. Meanwhile, Marlip LE 320 & LE 330 are for golf courses and patrol purposes, Marlip Hercules for hotel and airport areas while Marlip Pick Up for transporting goods. The four-seat vehicle has a speed limit of 50km per hour and can travel 120km when fully fueled. It costs Rp80 million.

Maleo

This car was first developed in 1993 when then President Soeharto’s administration launched a campaign to promote the use of domestic products. Indonesia’s aircraft manufacturer IPTN was appointed to realize the plan and it cooperated

Gea

Maleo

Timor Komodo Esemka Digdaya

Bakrie Beta 97 MPV

MR 90 Arina with Britain’s Rover and Australia’s Millard Design center. By 1997 IPTN had produced 11 prototypes but the project was grounded due to a total change of regime that brought a noisy end to the dictatorial rule of Soeharto.

Gea

This one was produced by stateowned railway company PT Inka. The engine was the result of an intensive research project called Riset Unggulan Strategis Nasional (Rusnas). It was a 640cc vehicle meant to socialize government fuel efficiency drive amidst global energy crisis of that time. The car traveled 10,000 kilometers at a maximum speed of 90km per hour.

Tawon

Tawon is the Indonesian word for “bee.” And the car does look like a bee. The tiny vehicle is meant to replace the three-wheeler bajaj produced by PT Super Gasindo Indonesia Jaya (GIJ). The provincial government of Banten, where the car is produced, has for some time been using it as its official car. The 650cc vehicle costs Rp28 million and can travel 100km per hour.

Mobira

This tiny car was produced by PT Sarimas Ahmadi Pratama in Depok, West Java. The car was designed and produced by Dasep Ahmadi, a local entrepreneur who graduated from the Bandung Institute of Technology (ITB) in 1984. Mobira, which stands for Mo-

bil Rakyat (people’s car), has been cited by State-Owned Enterprises Minister Dahlan Iskan as a potential car of the future.

Komodo

Komodo is not just the name of the giant lizard in East Nusa Tenggara province that recently won New Seven Wonders of the World contest; it is also the brand name of a locally-made car. The chief designer of Komodo car is Ibnu Susilo, who designed the CN-250 propeller aircraft and Malelo. This car is very fuel-efficient; it only needs 5 liters of gasoline to travel 100 kilometers for seven hours through forest areas. This car is very suitable for mountain expeditions because it has what is called a self-recovery system that enables it to return to normal position even if it should overturn.

Timor

Kalla Motor

Apart from Kiat Esemka, a number of domestically made cars have actually been introduced but they were less popular because of poor promotion strategy. Kiat Esemka became a hit in the market because it was promoted by Jokowi, Indonesia’s “Mayor of the Year” in 2011.

The word sounds like the name of the island on which Indonesia shares land border with Ramos Horta’s country. But Timor is actually an acronym for Teknologi Industri Mobil Rakyat. This car was once very popular and was produced by PT Timor Putra Nasional, which belonged to Hutomo “Tommy” Mandala Putra, son of former President Soeharto.

car to compete with his brother’s. Bambang’s car was Bimantara Cakra. Both cars failed to survive following the fall of Soeharto.

In essence this car was a metamorphosis of KIA Sephia, which used local content in the assembling process mixed with imported components. Tommy’s brother Bambang Trihatmodjo also produced his own

MR 90

Esemka Digdaya

This one was produced by students of SMK 1 Singosari, Malang, East Java. This double-cabin car has a 1,500cc engine modified from Timor’s remains. The car sells at Rp175 million each.

This was converted from Mazda 323 Hatchback by PT Indomobil. The latest version was Mazda Van Trend of 1994. It however did not continue for lack of market absorption.

The Kalla Motor company, which is associated with former Vice President Jusuf Kalla, once created a 500cc car but failed to continue the project that had been expected to produce a national car.

Bakrie Beta 97 MPv

Bakrie Brothers designed a minibus prototype in 1994 called Bakrie Beta 97 MPV. It was modelled after British Sado cars. In April 1995 the design work was completed and presented to the Bakrie management. The prototype was made in 1997. But a monetary crisis that hit the country in 1998 stalled the project.

Kancil

Kancil stands for Kendaraan Niaga Cilik Irit Lincah, meaning a small commercial car that is efficient and lively. This was produced by PT KANCIL (abbreviated from Karunia Abadi Niaga Citra Indah Lestari). This was once prepared to replace three-wheeler bajaj for use in Jakarta. But the project failed due to a lack of support from the municipal government and lack of market absorption.

Texmaco Macan

PT Texmaco once produced this MPV minibus with an engine capacity of 1800cc. Texmaco cooperated with Mercedes Benz when it put one prototype on display in 2001. But this project also collapsed due to financial crisis.

Gang Car

PT Dirgantara Indonesia produced this two-seater with an engine capacity of 125-200cc. This

car was intentionally made for use in smaller alleys and that’s why it is called Gang Car. The project was halted, however, due to financial crisis that hit the company in 2003.

Arina

This was produced by Universitas Negeri Semarang (Unnes) students with its engine converted from that of 150-250cc motorcycles. This also was a four-seat vehicle.

Texmaco Perkasa

This was the only truck ever produced by an Indonesian company. Up to 90% of its components were made locally. The engine was built in Indonesia under license from Cummin of America, while the gear was made under license from Germany. Other components were made locally also under license from Eston of the USA and Leyland of Britain. The Indonesian military ordered 1,000 such trucks from PT Texmaco up to 2009 but the company has now been closed down.

Nuri

This one was produced by PT Super Gasindo Jaya in July 2010. It has an engine capacity of 80cc and is a five-door car with dual fueling system where you can use gasoline and LPG alternatingly. It costs Rp50 million.

Wakaba

This one was produced by the automotive community and industry office of West Java province. It is a mutli-purpose vehicle for use in farm areas, villages, and traditional markets.

The President Post

C2 February 12, 2012

www.thepresidentpost.com

Automotive

In Automobile Market, Government Isn’t Taking Sides ANTARA/Akbar Nugroho Gumay

The government slaps a 10% import duty on automobile engines meant for domestic production but reduces to zero the import duty on the engines brought in by distributors of foreign brands.

Kiat Esemka, the masterpiece of high school students in Solo, Central Java, drew nation-wide attention when Joko Widodo (Jokowi), the mayor of Solo, bought one and used it as his official car to replace his Toyota Camry. Since then many government officials and public figures— including State-Owned Enterprises Minister Dahlan Iskan—have purchased the car. At least 5,000 people have lined up to buy the car, according to news reports as of early February.

By Nelly Angelina

he Association of Indonesian Automotive Producers (Asianusa) has complained about what they perceived as discrimination in government treatment toward automotive distributors. They claim that the government has been generous with distributors of foreign brands but has exhibited the opposite attitude toward distributors of domestic automotive brands. One simple example, they say, is that the government slaps a 10% import duty on automobile engines meant for domestic production but reduces to zero the import duty on the engines brought in by distributors of foreign brands. Responding to this, Industry Minister MS Hidayat says that one needs to look carefully at the details of such imports before making any judgment. He told members of Commission VI of the House of Representatives (DPR) recently that the main engines of several domestically built car prototypes were imported intact from the People’s Republic of China. “When the import duty for completely built-up engines is zero percent, what actually happens is that it is the engine producer in the country of origin that takes the benefit,” the minister explains. The minister says he uses the Customs and Excise Tariff Guide Book of 2012 which stipulates a 10% import duty on completely built-up car engines. To go about this situation, the minister proposes that domestic manufacturers import components and sub-components using the Incompletely Knocked-Down (IKD) scheme which is in conformity with Decree Number 59/MIND/5/2010 of the Minister of Industry. This particular decree stipulates a 2.5% import duty instead. This stipulation applies to all automotive brands be they distributed by foreign or local agents, he says.

SMK students assemble Kiat Esemka car at Solo Technopark, Solo. The car is expected to be the embryo of national car that could be mass produced at an inexpensive price.

The purpose of that 2.5% import duty is to encourage the growth of domestic automotive industries. With that the minister wishes to explain that there is no discrimination in government treatment toward local or automotive foreign brands. “What I mean is that we are actually facilitating domestic industries to grow and not blocking their growth in any manner,” he adds. As Minister Hidayat sees it, it is good if Indonesia could have its own car as a source of national pride. Over the past two decades, many local companies have produced their own cars but not in a big scale. They only produced prototypes and put them on display during several industrial exhibitions. Only last year did Kiat Esemka, the masterpiece of high school students in Solo, Central Java, drew nation-wide attention when Joko Widodo (Jokowi), the

mayor of Solo, bought one and used it as his official car to replace his Toyota Camry. Since then many government officials and public figures—including State-Owned Enterprises Minister Dahlan Iskan—have purchased the car. At least 5,000 people have lined up to buy the car, according to news reports as of early February. The Esemka car is produced at Solo Technology Park (STP), which is developed in cooperation with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) or German Agency for International Cooperation. The German government has pledged at least 28 million euros or equivalent to Rp336 billion in a combined package of soft loan and grant to augment Kiat Esemka’s start-up capital of Rp50 billion. Strangely, despite being a national pride, the entry of Kiat Es-

emka in the domestic market does not please certain high-ranking government officials. One such people is Bibit Waluyo, the governor of Central Java, who is hierarchically the boss of Jokowi. When Jokowi replaced his official Toyota sedan with Kiat Esemka, the governor mocked him and said the mayor had made “a careless blunder.”

Industry Minister MS Hidayat

What I mean is that we are actually facilitating domestic industries to grow and not blocking their growth in any manner,”

The governor said that as a state official, Jokowi should not have been so careless riding on a car that has yet to pass certification tests. “What if the car runs into a buffalo or break down on the road?” he wondered cynically. In spite of such criticism, Jokowi is determined to push ahead with facilitation efforts to make sure that Esemka be officially acknowledged as a national car. Unlike the Central Java governor, President Director of PT Toyota Astra Motor (TAM) Johnny

Darmawan says that his company welcomes wholeheartedly all efforts to have a national brand. He has called on all private and government institutions to support the Solo students’ endeavor and do whatever is possible to make Esemka a success story. “Nationalism must be preserved through this Esemka car,” Darmawan notes, adding that “there must never be any attempt to kill this spirit of nationalism.” Reacting to Darmawan’s remark, the CEO of another subsidiary of the Astra Group has welcomed Esemka’s entry in the domestic market and called for quality upgrading of the new car and fulfillment of free-market requirements. President Director of PT Astra Sedaya Finance (ASF) Djony Bunarto Tjondro says that any national car (Mobnas) must have the ability attract the free market. The product must

be of high quality in the eyes of the market, the availability of its spare parts must not be a problem, and it must have satisfactory after-sales service, Djony says. “If it is true that the product meets all those requirements, we certainly will step into it for financing (leasing) purposes.” “80% of our financing activities is dedicated to non-Astra products. This shows that we are open to other or new brands, including Mobnas brands, so long as those requirements are fulfilled,” Djony says. “We do not look at the brands; we look at the quality and those requirements, be they Esemka or European or American cars, no problem.” He concluded that for Astra, the issue is not whether it is a national car or not. Instead, the issue is payment guarantee. Therefore, fulfillment of those requirements is highly important, he emphasizes.

BERLANGGANAN SEKARANG! Data Pribadi

Ya! Saya ingin berlangganan

MENANGKAN VOUCHER MENGINAP DI HOTEL MEWAH Untuk berlangganan minimal 24 edisi

Industrial Post - Departemen Sirkulasi

Menara Batavia 25th Floor Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Telp.: +62 21 572 7337 Faks.: +62 21 572 7338 Email: sirkulasi@theindustrialpost.com

Industrial Post

Jabodetabek

HEMAT

6 Edisi

Rp. 60,000

12 Edisi

Rp. 108,000

10%

18 Edisi

Rp. 153,000

15%

24 Edisi

Rp. 192,000

20%

Tn.

Alamat

Ny.

Rumah

Kantor Kode Pos

Tanggal lahir Nama Perusahaan

Jabatan

Telp. HP Email

Metode Pembayaran

Kirim form ini dan bukti pembayaran melalui fax: +62 21 572 7338 Untuk info lebih lanjut, hubungi: +62 21 572 7337

Nama

Transfer ke: Bank OCBC NISP Capitol Cabang Cikarang 101.010.00016.5 Atas nama PT. Sarana Pratama Pengembangan Kota

Surat kabar bisnis lain yang anda baca?

Faks.

The President Post

C4 February 12, 2012

www.thepresidentpost.com

Tourism Number of Tourists to S. Sumatra Projected up 20% www.wisatapalembang.com

In 2011 the number of Indonesian tourists to the province reached 2.7 million, foreign tourists reached 36-40 thousand.

he number of tourists to South Sumatra in 2012 may increase by 20% from last year`s. “We will try to increase the number of tourists here by holding and organizing various activities and programs,” head of the South Sumatra culture and tourism agency Toni Panggarbesi said in Palembang Thursday. He said to reach the number of tourists he will cooperate with the relevant authorities in the area. He added Indonesia last year had 7.6 million tourists, and was planned to reach eight million, but the actual figures stood at 7.8 million. Tourists to South Sumatra came from Malaysia, Jakarta, Bali, Yogyakarta, and Batam, and that he will try to increase their number by 20% this year, he said. He said while in 2011 the

Europe Still Potential Market for Indonesian Tourism

number of Indonesian tourists to the province reached 2.7 million, foreign tourists reached 36-40 thousand. “This year we need to cooperate with tourism players and stakeholders. We make souvenirs, but the readiness of the regencies and cities are also expected in the development and arrangements of tourism objects and destinations,” he said. He said it is also necessary to hold activities such as a festival like the recent “cap go meh” (end of Chinese new year), for instance. He will also invite the South Sumatra Arts Council to hold regional dances on Saturdays and Sundays, especially to entertain tourists. The cultural and tourism agency will also cooperate with tourist operators in Malaysia, and hotels in the province, he said.

Tourism and Creative Economic Minister Mari Elka Pangestu said Europe remains a potential market for Indonesian tourism. “Although an economic crisis is taking place there, Europe is still a potential market for Indonesia`s tourism. Tourism is a sector which remains strong even during a crisis,” the minister said here on Wednesday.

www.pamitrantours.com

Borobudur Temple to Be Visited by 2.5m Tourists

AMPERA BRIDGE. Tourists to South Sumatra came from Malaysia, Jakarta, Bali, Yogyakarta, and Batam

She noted that economic turmoil was taking place in a number of European countries, yet the tourism sector there is growing. Spain and Greece, for example, experienced an 8 to 9% growth in their tourism sector, the minister said. “Even inbound tourism in the United States grew by 5%,” she added. The World Economic Forum in

Martin Craigs: At the Helm of PATA Martin Craigs, CEO of the Pacific Asia Travel Association (PATA), has worked in aerospace/airline-related businesses around Asia Pacific for over 30 years. His experience and expertise will bring PATA to reach new productive era, as the Executive Board expected him to convey fast track progress. Craigs effectively started his position as PATA’s CEO since October 2011. The Association’s headquarters is located in Bangkok. PATA also maintains regional offices in Frankfurt, New York, San Francisco, Beijing and Sydney. “Managing an association like PATA is bound to have some pain. It involves orchestrating the outcries of thousands of people from dozens of countries with multiple functional experiences. However, this type of contention is trumped by the pleasure of interacting with the many positive people that the travel industry attracts, not least the proactive PATA staff,” stated Craigs. An aviation industry specialist, Craigs has held important and senior positions at companies such as British Aerospace company Short Brothers and Saab Scania Group, rising to become executive vice president of BAE Systems, a multinational defense, security and aerospace company based in the UK. Since 1986, because of his experience, advocacy skills and network of contacts, Craigs has retained leadership of the pan-Asian nonprofit advocacy group AFA. Its current members include Airbus, Boeing and Cathay Pacific. Over the past few years, Craigs has been asked to lobby for or advise diverse organizations such as AirAsia, the Hong Kong government,

Martin Craigs, CEO of the Pacific Asia Travel Association (PATA)

His experience and expertise will bring PATA to reach new productive era, as the Executive Board expected him to convey fast track progress. publisher and information provider Reed Elsevier, The Economist, the International Air Transport Association (IATA) and the Pacific Basin Economic Council. He has been a guest of IATA at the last 10 annual general meetings/world transport summits, and has attended Asia-Pacific Economic Cooperation (APEC) summits in Asia and Latin America. The Pacific Asia Travel Association (PATA) was founded in 1951 and is the recognized authority on Asia Pacific travel-and-tourism. Its mission is to enhance the sustainable growth, value and quality of Pacific Asia travel and tourism for the benefit of the region, the industry and the members. Its main activities include the provision of cutting-edge strategic intelligence; timely research and industry analysis to its mem-

bers and partners; advocacy and support on behalf of the region and the industry in times of crisis; the convening of travel trade shows that provide a unique platform for buyers and sellers of Asia Pacific travel products to conduct business; the organization of local or regional workshops, seminars or conferences to enhance the professionalism of our sector; and the timely communication of relevant industry news and opportunities to its members. Thus, PATA assists its members to remain competitive in the global marketplace. PATA also actively works to protect and preserve the region’s unique natural and cultural resources and maintains a strong focus on environmental and industry sustainability. To this end, it works closely with the PATA Foundation, the Association’s charitable arm. In partnership with private and public sector members, PATA enhances the sustainable growth, value and quality of travel and tourism tofrom-and-within, the region. The Association provides leadership and counsel on an individual and collective basis to over 80 government, state and city tourism bodies; nearly 50 international airlines, airports and cruise lines and many hundreds of travel industry companies across the Asia Pacific region and beyond. Thousands of travel professionals belong to 39 active PATA chapters worldwide and participate in a wide range of PATA and industry events. PATA’s Strategic Intelligence Centre (SIC) offers unrivalled data and insights including Asia Pacific inbound and outbound statistics, analyses and forecasts as well as in-depth reports on strategic tourism markets.

Davos late last month concluded that the highest growth of the tourism sector would take place in Asia, Mari said. “Growth will take place in Asia so we will continue to increase promotional efforts and seek the way to build more effective connectivity,” the tourism minister said. Marie said that the connectivity factor included infrastructure, flight quotas and other supporting facilities which still

faced constraints at home. Until now, Indonesia has been focusing its tourism market on a number of countries in Europe. These countries still experienced positive growth in 2011. Those European countries include Britain (grew by 3.73%), The Netherlands (2.88%), Germany (2.29%) and Russia (14.92%).

An official of Borobudur Temple Garden Tour (TWCB) targeted 2.5 million tourists in 2012. “We are optimistic the target could be achieved under the good condition in this early year,” said the Head of TWCB Units Pujo Suwarno in Magelang, Wednesday. He said the target of 2012 has been increased 15.3%. Last year the number of visitors stood at 2,116,116, comprising 1,949,592 domestic tourists and 166.524 foreign tourists. Suwarno said although the target of 2011 had been reached, the number decreased from that of 2010’s 2,436,817 tourists due to the Mount Merapi eruption that caused a huge damage

on roads. “Also, the Pabelan Bridge (bridging Yogyakarta and Magelang region) which was struck by cold lava,” said Suwarno. “Many tourists changed the destinations to other objects,” he said further. According to Suwarno, when the bridge was broken, the tourists had to be picked up from Yogyakarta in western area of the Pabelan Bridge. “But now, the bridge has been fixed, and we do not have any problems going to Borobudur Temple, both by main and alternative roads,” he said. Suwarno said, tourism infrastructure should be improved so that tourists would be able stay longer in Magelang, Central Java.

The President Post

www.thepresidentpost.com

February 12, 2012 C5

Travel Bengkulu Showcases Rafflesia Flowers www.panoramio.com

Indonesia has the most variety rafflesia species in the world. Of the 25 species recorded so far, 12 are found in Indonesia and four of them are found in Bengkulu.

Indonesia has only found two to three new species in the last 20 years. It shows that research in the species is still behind from Malaysia and the Philippines although these species firstly appeared in Indonesia.

he habitats of Rafflesia Arnoldii are spread evenly in forest areas of Bengkulu province, a Rafflesia researcher from the University of Bengkulu, Agus Susatya, said here Monday. “Based on records we have collected, raflesia is not found just in one forest area but also in nine districts and not in cities that have no forest area,” he added. Agus said the unique flowers were found in the Bukit Barisan mountains in northern Bengkulu, namely Mukomuko district, the eastern area of Lebong district up the southern part of Kaur district. He said there are 21 locations where the rare flower blooms, in nine districts, namely Mukomuko, North Bengkulu, Central Bengkulu , Kepahiang, Lebong, Rejang Lebong, South Bengkulu, Seluma and Kaur. However, the majority of the forest areas which are the habitat of the pro-

Rafflesia Arnoldii. The unique flowers were found in the Bukit Barisan mountains in northern Bengkulu, namely Mukomuko district, the eastern area of Lebong district up the southern part of Kaur district. tected flower has been changed into gardens that threaten its sustainability. “During 2011, the flower bloomed 14 times in various locations, namely in Central Bengkulu, Kepahiang, Mukomuko and Kaur,” Agus added. He noted the location of protected forest along the highway of Kepahiang and Taba Penan-

jung were the common locations for the blooming rafflesia. These locations are located in natural reserves of Taba Penanjung I and II and protected forests which border with Tebat Monok village, Kepahiang district. Unfortunately the blooming flowers are often not managed well. As they frequently bloom and access to them is easy, these flowers are potentially a strong appeal

for the community and economic development through eco-tourism. Indonesia has the most variety rafflesia species in the world. Of the 25 species recorded so far, 12 are found in Indonesia and four of them are found in Bengkulu. In Malaysia and Sabah, which only has six species, the ecological research and conservation for

MS Discovery Cruise Ship Brings in Tourists to Ambon The visit to Ambon by American cruise ship MV Discovery on Sunday, January 29, 2012, would restore the image the Maluku provincial capital in the eyes of international community, Ambon Mayor Richard Louhenapessy said here on Sunday. MV Discovery started its Voyages of Discovery from Manila to Sandakan, Bitung, Ambon, and then on to Darwin, Booby Islands, Cairns, Port Doglas, Brisbane, New Castle, and Sydney. “It is expected that the visit to Ambon by the American cruise ship will restore the image of Ambon city that was hit by communal conflict on September 11, 2011,” Louhenapessy said.

Rafflesia os relatively more intense and advanced. Similarly in the Philippines, which in the past five years have discovered five new species of rafflesia. Meanwhile, Indonesia has only found two to three new species in the last 20 years. It shows that research in the species is still behind from Malaysia and the Philippines although these species firstly appeared in Indonesia, Agus explained. The lack of attention is very alarming because most of the rafflesia species are classified in the endangered category, he said.

MV Discovery

He said that after conflict in September last year, the number of both domestic and foreign tourist visit decreased dramatically but the Sunday`s arrival of MV Discovery would restore the image of Ambon city. “The Ambon city government and the people feel proud of the arrival of MV Discovery with 440 tourists from the United States, Canada, Australia, and New Zealand because it will prove that Ambon can be visited again by tourists from various countries,” Louhenapessy said. He expressed hope that the tourists upon returning to their respective countries would promote the natural beauty of Ambon and its conducive security situation.

The President Post

C6 February 12, 2012

www.thepresidentpost.com

Living

Mindful Eating as Food for Thought

www.winehardware.com

Mindful eating is not a diet, or about giving up anything at all. It’s about experiencing food more intensely — especially the pleasure of it. You can eat a cheeseburger mindfully, if you wish. You might enjoy it a lot more. Or you might decide, halfway through, that your body has had enough. Or that it really needs some salad.

RY this: place a forkful of food in your mouth. It doesn’t matter what the food is, but make it something you love — let’s say it’s that first nibble from three hot, fragrant, perfectly cooked ravioli. Now comes the hard part. Put the fork down. This could be a lot more challenging than you imagine, because that first bite was very good and another immediately beckons. You’re hungry. Today’s experiment in eating, however, involves becoming aware of that reflexive urge to plow through your meal like Cookie Monster on a shortbread bender. Resist it. Leave the fork on the table. Chew slowly. Stop talking. Tune in to the texture of the pasta, the flavor of the cheese, the bright color of the sauce in the bowl, the aroma of the rising steam. Continue this way throughout the course of a meal, and you’ll experience the third-eye-opening pleasures and frustrations of a practice known as mindful eating.

www.thesecretingredientblog.com

The concept has roots in Buddhist teachings. Just as there are forms of meditation that involve sitting, breathing, standing and walking, many Buddhist teachers encourage their students to meditate with food, expanding consciousness by paying close attention to the sensation and purpose of each morsel. In one common exercise, a student is given three raisins, or a tangerine, to spend 10 or 20 minutes gazing at, musing on, holding and patiently masticating. Lately, though, such experiments of the mouth and mind have begun to seep into a secular arena, from the Harvard School of Public Health to the California campus of Google. In the eyes of some experts, what seems like the simplest of acts — eating slowly and genuinely relishing each bite — could be the remedy for a fast-paced Paula Deen Nation in which an endless parade of new diets never seems to slow a stampede toward obesity. Mindful eating is not a diet, or about giving up anything at all. It’s about experiencing food more intensely — especially the pleasure of it. You can eat a cheeseburger mindfully, if you wish. You might enjoy it a lot more. Or you might decide, halfway through, that your body has had enough. Or that it really needs some salad. “This is anti-diet,” said Dr. Jan Chozen Bays, a pediatrician and meditation teacher in Oregon and the author of “Mindful Eating: A Guide to Rediscovering a Healthy and Joyful Relationship with Food.” “I think the fundamental problem is that we go unconscious when we eat.” The last few years have brought a spate of books, blogs and videos about hyper-conscious eating. A Harvard nutritionist, Dr. Lilian Cheung, has devoted herself to studying its benefits, and is passionately encouraging corporations and health care providers to try it. At the Food and Brand Lab at Cornell University, Prof. Brian Wansink, the author of “Mindless Eating: Why We Eat More Than We Think,” has conducted scores of experiments on the psychological factors that lead to our bottomless bingeing. A mindful lunch hour recently became part of the schedule at Google, and self-help gurus like Oprah Winfrey and Kathy Freston have become cheerleaders for the practice.

Dr. Lilian Cheung Harvard Nutritionist

That’s why mindful eating is becoming more important. We need to be coming back to ourselves and saying: ‘Does my body need this? Why am I eating this? Is it just because I’m so sad and stressed out?’ ”

Could a discipline pioneered by Buddhist monks and nuns help teach us how to get healthy, relieve stress and shed many of the neuroses that we’ve come to associate with food? Dr. Cheung is convinced that it can. Last week, she met with team members at Harvard Pilgrim Health Care and asked them to spend quality time with a chocolate-covered almond. “The rhythm of life is becoming faster and faster, so we really don’t have the same awareness and the same ability to check into ourselves,” said Dr. Cheung, who, with the Vietnamese Buddhist monk Thich Nhat Hanh, co-wrote “Savor: Mindful Eating, Mindful Life.” “That’s why mindful eating is becoming more important. We need to be coming back to ourselves and saying: ‘Does my body need this? Why am I eating this?

Is it just because I’m so sad and stressed out?’ ” The topic has even found its way into culinary circles that tend to be more focused on Rabelaisian excess than monastic restraint. In January, Dr. Michael Finkelstein, a holistic physician who oversees SunRaven, a holistic-living center in Bedford, N.Y., gave a talk about mindful gardening and eating at the smorgasbord-friendly headquarters of the James Beard Foundation in New York City. “The question isn’t what are the foods to eat, in my mind,” he said in an interview. “Most people have a general sense of what the healthy foods are, but they’re not eating them. What’s on your mind when you’re eating: that’s mindful eating to me.” For many people, eating fast means eating more. Mindful eating is meant to nudge us beyond what we’re craving so that we wake up to why we’re craving it and what factors might be stoking the habit of belly-stuffing. “As we practice this regularly, we become aware that we don’t need to eat as much,” said Phap Khoi, 43, a robed monk who has been stationed at Blue Cliff since it opened in 2007. “Whereas when people just gulp down food, they can eat a lot and not feel full.” It’s this byproduct of mindful eating — its potential as a psychological barrier to overeating — that has generated excitement among nutritionists like Dr. Cheung. The average American doesn’t have the luxury of ruminating on the intense tang of sriracha sauce at a monastery. “Most of us are not going to be Buddhist monks,” said Dr. Finkelstein, the holistic physician. “What I’ve learned is that it has to work at home.” To that end, he and others suggest that people start with a few baby steps. “Don’t be too hard on yourself,” Dr. Cheung said. “You’re not supposed to be able to switch on your mindfulness button and be able to do it 100 percent. It’s a practice you keep working toward.” Dr. Bays, the pediatrician, has recommendations that can sound like a return to the simple rhythms of Mayberry, if not “Little House on the Prairie.” If it’s impossible to eat mindfully every day, consider planning one special repast a week. Click off the TV. Sit at the table with loved ones. “How about the first five minutes we eat, we just eat in silence and really enjoy our food?” she said. “It happens step by step.” Sometimes, even she is too busy to contemplate a chickpea. So there are days when Dr. Bays will take three mindful sips of tea, “and then, O.K., I’ve got to go do my work,” she said. “Anybody can do that. Anywhere.” Even scarfing down a burrito in the car offers an opportunity for insight. “Mindful eating includes mindless eating,” she said. “ ‘I am aware that I am eating and driving.’ ” “So many people now have found themselves in an adversarial relationship with food, which is very tragic,” Dr. Bays said. “Eating should be a pleasurable activity.” NYT

www.huffingtonpost.com

The President Post

www.thepresidentpost.com

February 12, 2012 C7

Health What Doctors are Telling Us Even When They’re Not Talking www.1dental.com

Teaching good communication skills has been mandatory for medical schools because of research showing that good patient-doctor communication can lead to improved patient satisfaction and better health care outcomes.

als — is as critical a part of communication as verbal expressions. And nonverbal cues may, in fact, be more reflective of the biases faced by doctors and patients. In this recent study, for example, a group of medical sociologists analyzed the interactions between 30 primary care doc-

Now a small but growing body of research is revealing that the nonverbal component of the patient-doctor interaction — the subtle gestures, body positions, eye contact, touch and expressions that pass between individuals — is as critical a part of communication as verbal expressions. And nonverbal cues may, in fact, be more reflective of the biases faced by doctors and patients.

By Pauline W. Chen, M.D.

hat does your doctor’s body language say to you? I recently read through a study published in The Journal of General Internal Medicine on the different ways that African-American and white doctors communicate nonverbally with older patients, and I was reminded of a former colleague, a specialist in brain tumors who stood out from the rest of us young doctors for two reasons. First, though a relative newcomer to the hospital, he had diagnostic skills equal to those of physicians many years his senior. Second, and not unusual for over a decade ago, he was one of the few African-American physicians there. One day I asked him to see one of my patients who had recently been given a cancer diagnosis. The patient, who was older and white, was sitting upright in his bed, surrounded by his wife and children, when we entered the room. But by the time we left, the patient, along with his relatives, was doing exactly what I was — leaning over and politely straining to hear what my colleague was saying. This brilliant doctor’s soft baritone voice was rendered even less comprehensible because he tilted his head down and spoke not toward us but at the door. Every so often he looked up and shared a radiant, even reassuring smile. But then he would look down again, shift his weight and continue speaking too softly to be intelligible.

What puzzled me was that I didn’t normally think of this colleague as being that self-effacing. But when I described his visit a couple of days later to another colleague, a mutual friend, she immediately recounted a similar episode. “It’s weird, isn’t it?” she said. “He’s the smartest doctor in the hospital, but when he starts talking to some patients, it’s like he’s trying to disappear.” For nearly two decades, teaching good communication skills has been mandatory for medical schools because of research showing that good patient-doctor communication can lead to improved patient satisfaction and better health care outcomes. To this end, medical educators have developed a host of communication courses and workshops that combine lectures, self-assessments, video recordings and “standardized patients,” or actors in the role of patients.

More recently, many schools have broadened their courses to include “cultural competency,” or the ability to communicate with those from different racial, ethnic and social backgrounds. Studies have shown that while a patient’s race and ethnicity can be linked to sharply different treatment courses and quality, better communication between doctors and patients of different backgrounds can reduce the disparities. Despite these tremendous efforts, there is one area of communication to which few schools have devoted significant time or resources: body language and facial expressions. Now a small but growing body of research is revealing that the nonverbal component of the patient-doctor interaction — the subtle gestures, body positions, eye contact, touch and expressions that pass between individu-

Tai Chi Benefits Patients With Parkinson’s Can tai chi, the ancient martial art, help alleviate Parkinson’s symptoms? Tai chi, an ancient martial art characterized by slow, flowing movement and meditation, helps improve balance and movement control for people with Parkinson’s disease. The finding, published in The New England Journal of Medicine, is the latest study to show the benefits of tai chi for people with chronic health problems. Past studies have shown that tai chi reduces falls and depression among the elderly, and lessens pain for patients with arthritis and fibromyalgia. In Parkinson’s disease, nerve cells in the brain that produce the chemical dopamine begin to die. Lower dopamine production can lead to tremors, balance problems, stiff facial expressions and muffled speech, among other problems. An estimated one million people in the United States have the disease, and another 60,000 receive the diagnosis each year. Although the condition usually develops after the age of 60, 15 percent of those who learn of the diagnosis are under 50. In the latest research, 195 people with movement and balance problems caused by Parkinson’s disease were recruited from four Oregon cities. The patients were divided into three exercise classes that met for an hour a day, twice a week. One group took part in an extensive stretching class, another was taught resistance training, and the third group performed tai chi.

After six months, patients in the tai chi group performed better on a number of measures related to strength, movement control, balance, stride length and reach. Resistance training also offered some benefits, and both the tai chi and resistance training groups had fewer falls than the stretching group. The findings are good news for people with Parkinson’s, who often lose the ability to maintain standing balance and have difficulty walking and are at risk for frequent falls. Although some symptoms of Parkinson’s, like tremors, can be relieved by drug therapy, balance and walking problems are typically not helped by drug treatment. “Current medications do not work well in terms of providing relief for impaired balance or postural instability,” said Fuzhong Li, a research scientist at Oregon Research Institute in Eugene and the study’s lead author. “In fact, patients suffer a great deal of medication side effects which may lead to further deterioration in balance control.” Why tai chi helps people with Parkinson’s isn’t entirely clear. Even for a healthy person it can be hard to maintain balance and stability while performing the continuous, rhythmical, weight-shifting movements of tai chi. It may be that practicing tai chi trains the parts of the brain that control balance and movement to adapt more quickly in response to the motor control challenges of Parkinson’s. NYT

tors and more than 200 patients over age 65 and found that white physicians tended to treat older patients similarly, regardless of race. Black physicians, on the other hand, often gave white patients contradictory signals, mixing positive nonverbal behaviors, like prolonged smiling or eye contact, with negative ones, like creating physical barriers by crossing the arms or legs.

open body positions, facial expressions and even light touch to encourage patients and convey respect, understanding, availability and attention. “Patients feel vulnerable and search for nonverbal cues,” Dr. Stepanikova noted. “If the doctor nods when the patient is talking but keeps looking at the chart, the patient will wonder if the doctor is really taking her seriously.”

The finding was reminiscent of earlier studies on interactions between female doctors and male patients, in which the doctors tended to give the patients conflicting nonverbal cues, combining, for example, smiles with a negative or anxious tone of voice. These mixed signals, said Irena Stepanikova, the lead author of the recent study and an assistant professor of sociology at the University of South Carolina in Columbia, are a result of dealing with “a status in our society that is devalued.” Rather than being expressed explicitly, biases regarding race and gender tend to be expressed “in behaviors not consciously controlled,” she said.

Dr. Stepanikova and her colleagues believe that greater emphasis on nonverbal communication can help medical educators address some of the social biases that affect patient care. But they acknowledge that the process will be challenging. Research in this area is still relatively sparse, and few medical educators are well versed in this topic. Moreover, even experts like Dr. Stepanikova, who needed to devote several hours to analyzing just portions of a single patient-doctor visit, are unsure of how researchers and educators can measure the nuances and complexities of nonverbal communication accurately, consistently and efficiently.

The researchers also found that despite the contradictory cues, the black doctors were generally more skillful in using positive nonverbal behaviors than their white colleagues. They were, for example, better able to use prolonged eye contact, more

“We all want to be as egalitarian as possible,” Dr. Stepanikova said. “But what is difficult is knowing what and when to change, because so much of nonverbal communication happens outside of our conscious awareness.” NYT

C8 February 12, 2012

The President Post

www.thepresidentpost.com

Photo Essay

Balu Oto Work, A Lecturerâ&#x20AC;&#x2122;s Business and Hobby TEXT AND PHOTOS BY NANDI NANTI

A modification workshop that provides headlight parts and body kits named Balu Oto Work (BOW). It is located at Jalan Pramuka, No. 53 Giwangan, Umbulharjo, Yogyakarta. The modification workshop is owned by a young university lecturer in Yogyakarta, Andika Kairuliawan, who has the passion and hobby for automotive modification. BOW has been producing various kind of headlights modification from different types of motorcycles, such as Yamaha Byson, Yamaha V-Ixion, Suzuki Satria FU, Kawasaki Ninja, and other types of sport motorcycles. The headlights installation process is fairly easy. Just lift the headlamp and the original bracket on the motor, and then attach the light model that has been ordered according to customer requirements. The price of modified headlights is between Rp 300-400 thousand per unit. For full body modification, the cost may reach Rp 5-7 million, and it takes about one month for full body modification. In addition, for orders outside Yogyakarta, shipping cost will be added.