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
April 2012 /// N0. 34
www.thepresidentpost.com
The Rule of Law and Political-Economic Stability The rule of law and legal enforcement are related to, and inseparable from, the enduring struggle for adequate rates of economic growth, increased social justice and the imperatives of reinforcing rules at the ground level.
The following steps are critical to emphasize the importance of law enforcement in advancing national stability and development: First, triple the size of our middle class within the next 10-15 years. Locally defined, the Indonesian middle class now consists of roughly 35-70 million Indonesian who in monetary terms spend about $750-1,000 a month on household spending. They are the “affordables” who benefit from the rule of law because their social and economic situation allow them to have a special interest in defending the prevailing political, economic and legal system. They are the professionals in management, banking, accountancy, specialised law, bio-technology, engineering and other professional skills that energize the market economy. Pictures of their “grip and grins” often appear in glossy magazines of the super-rich.
By Juwono Sudarsono
R
ules-based democratic governance is often cited as the necessary political-economic framework for conducting law and order and national stability. But the legitimacy and effectiveness of any legal precept ultimately very much depends on the quality of political leadership. That political leadership is crucial to underpin how particular rules of law is interpreted, enforced and legitimately accepted. An understanding of the political and economic context of law and order is therefore imperative if we are to gain any meaning to the broad notion of law enforcement. In the real world, what transpires is a contest of which sets of which law and what terms of social order are being defined, and what definition of which part of law over what particular scope of legal order prevails over the interpretation and execution over yet another (set of ) legal precepts. There is a saying which stipulates “Where you stand depends on where you sit” which, if elaborated further, transpires to the maxim “Where you sit depends on what you eat, and what you eat depends on where you were born.” Translated into layman’s terms, law enforcement as it stands is always fine for those who benefit from “the system”. If you are a member of the 3570 million Indonesian upper and middle class, and lucky enough to be born into a well-to-do family, have ready access to basic human needs (clean water, adequate housing, affordable electricity, possess life and vocational skills), law enforcement tends to “work for me”. One person’s particular economic station in life translates into a built-in interest to benefit from and support the existing legal system. The social economic system that underpins our political status defines our legal advantage. If a person or group lives well above the affluent line and happens to be entangled in an expensive litigation, then they are likely to be able to afford one’s favorite highpriced lawyer who will represent their interests against the claims of similarly privileged person or group. If, however, you were born into a family residing in one of the water-clogged slum hatches of Jakarta, the “rule of law” is practically meaningless. Living below
But 35-70 million (out of 240 million) who mainly live in urban and suburban centers throughout Indonesia is not quiet the critical mass required to become the transmission belt between the super rich (less than 3% above the upper middle class) and the abject poor who make do on less than $1.50 a day. The central issue of our time is bridging this vast gap of those who can afford the law (or at the very least those who manipulate or buy off the legal authorities) and the vast majority who do not economically benefit or enjoy the good life afforded by the prevailing legal system.
the poverty line means you do not have the social economic underpinnings that allow you “to benefit from the prevailing law and order”. You do not bathe twice, cannot afford eat three square meals and are unlikely to enjoy the pleasure of donning a clean Tshirt after a hot shower on a daily basis. Your poverty makes you vulnerable to the watchful eye of the municipal police who are authorised to forcibly remove your dwellings on behalf of a zoning law on publicly-owned or privately sequestered land. In the real world, there are no slumdog millionaires. If you live in the peripheral areas of Aceh, Poso and Papua, you have another dimension of the rule of law, as local cultural norms and values are not generally accounted for. By and large, in these provinces national laws, acts, edicts and executive orders and legislative as well as judicative rulings are alien to the pre-
vailing cultural and customary norms at ground level. The legal traditions that flow from the Dutch legal system inherited through decades of state succession throughout post-independent Indonesia have no real meaning to the peoples of tribal and sub-tribal cultures in the farflung corners of Aceh, Poso and Papua. These diverse customary norms and values have their own particular notions of what is right and proper. The 700-article Revised Penal Code of the Republic of Indonesia bears little relevance to their lives and to their sense of self-identity. Viewed from a broader political and economic perspective, the rule of law can only have meaning in particular contexts of time and space, linked to all five dimensions of Human Rights: Civil, Political, Economic, Social and Cultural.
The central issue of our time is bridging this vast gap of those who can afford the law (or at the very least those who manipulate or buy off the legal authorities) and the vast majority who do not economically benefit or enjoy the good life afforded by the prevailing legal system.
The liberal narrative of the rule of law stems from a strong tradi-
OPINION
THE ECONOMY
TECHNOLOGY
BUSINESS
Leadership To Achieve Indonesia World's Respected
President To Outline Five Measures To Safeguard Economy
Skype Now Available for Windows Phone
Garuda Indonesia Aims for 22m Passengers in 2012
We should oblige ourselves to build the existing potential leadership, which has been built through the history of our own education. PAGE A2
President Yudhoyono is optimistic that in 2012 Indonesia will be able to overcome its economic challenges. PAGE A5
Skype has announced that it’s finally ready to arrive on its good friend’s mobile platform, Windows Phone.
The flag carrier flew 17.1 million passengers in 2011 consisting of 13.9 million domestic passengers and 3.2 million international passengers.
PAGE A8
PAGE B2
tion in the Anglo-Saxon world, which emphasizes the rule of law as primarily civil and political rights issues. That notion very seldom links these rights to the imperative of integrating them with the social, economic and cultural dimensions of both Human Rights as well as the Rule of Law. That biased interpretation of the liberal notion perpetuates the maxim that ”The rich do what they can, the poor suffer what they must.” Some years ago, European, American and Indonesian businessmen were touting Indonesia as the investment destination to place their bets on. Indonesia was already favorably compared to China. The conference agreed that if Indonesia were to become even more competitive, the government had to resolve the socalled “3 L’s” conundrum: Land, Labour and Legal. The first key impediment to foreign direct investment was the issue of land titles. The ministries of home affairs, law and human rights, agriculture, as well as the agency for national land titlement fought over jurisdiction about which particular legal ruling prevailed about a particular area open for investment. Governors, district heads and mayors in turn wanted their say on each investment deal. Clearly, the question of which law from which government agency prevailed became a classic case of local politics: Who gets what, where, when and how. Interest groups, lobbyists and even rights activists joined in the fray. Foreign companies had to manuever into the legal morass in Jakarta and the provincial offices of the ministries of finance, Industry, and law and human rights.
The second issue had to do with labor laws. At the time, the government had passed legislation in parliament which made it difficult for employees to be fired and which obliged companies to provide “adequate compensation” prior to dismissal. Severance pay covered about six months of basic salary and led to several employers, including foreign investors, to balk and look to Vietnam and Cambodia as alternative investment sites. The third issue focused on the legal system. It became a veritable battleground for the many lawyers in their respective specialised fields: commercial, investment, finance, labour. The adage that “a jungle of laws leads to the law of the jungle” became a harsh reality. The police, the Office of the Attorney General, the courts and predatory lawyers – national, provincial and local – became part of the problem that added up the overhead costs of investment. It also ultimately cost Indonesia’s investment competitiveness. The rule of law and legal enforcement are related to, and inseparable from, the enduring struggle for adequate rates of economic growth, increased social justice and the imperatives of reinforcing rules at the ground level. These endeavors must be improved continuously over time. I also recognize that there is no linear correlation between the rule of law (for those who can economically afford it) with equitable national development, just as there is no automatic transformation towards political democratization as economic development expands.
Second, establish clusters of graduated social economic progress so that the myriad rules of laws can fairly and justly resonate in the hearts and minds (and stomachs) of more and more citizens in each province, district and township, concurrent with improvements in our Human Development Index. The governor’s, district’s or mayor’s leadership and management skills in delivering public goods and essential services (clean water, public housing, basic education, electricity, infrastructure, public order) are critical to sustainable national development. There cannot be sustained national development without respect for the rule of law at every level of governance throughout the 2012-2025 period. Thirdly, streamline laws and legislation both vertically as well as horizontally so that there are clearer and fairer legal regimes pertaining to the political and economic goals of carefully calibrated commitments to equitable national development at every stage of development. Matching diverse legal and cultural regimes able to deliver justice through tangible benefits accelerates equitable distribution of monetary as well as non-monetary indicators of social, economic and cultural wellbeing. Less legal clutter will boost acceptance of the law enforcement as more and more people scale up the social economic ladder. Sustained national development entails the matching and enrichment of legal cultures prevalent in Indonesia’s diverse ethnic, cultural and traditional entities. There will be social, economic and political glitches from time to time, but the saving grace of our cultural diversity means that it is patient work at rebuilding and replenishing political, economic and legal consensus that ultimately defines the trajectory of matching the rule of law in support of graduated national development and politicaleconomic stability.
The writer is the chairman of President University Foundation, Cikarang, West Java, and is former Minister of Defence
The President Post
A2 April 2012
www.thepresidentpost.com
Opinion Leadership To Achive Indonesia World’s Respected We should oblige ourselves to build the existing potential leadership, which has been built through the history of our own education. Then, we should note that our values implement continuously, such as building leadership by preparing a cadre of professional fields, obey the law in our environment, appreciate the differences between national and international community, faith to move forward together and build together in a democratic way, and finally voluntarily accept a leadership mandate.
P
INTRODUCTION
By Prof. DR. Ermaya Suradinata, MS.
ower crisis that globalizes toward developed and developing countries in Asia, Africa, America and others like Egypt still going on reformation process on its democracy, through transformation phase that is vulnerable on its government leadership, and Indonesian strategic position on the world stage, makes Indonesia must control world’s development through continued Strategic Vision. As well as Indonesian society in general, we are the same as understanding if the our archipelago where we are today, is a collection of people who have a history, because it is the struggle of our predecessors, who have a high idealism to defend our beloved homeland. The Indonesian warriors and proclaimers have been successful to manumit the nation of Indonesia to be a country, that led to the events to proclaim immediately the Republic of Indonesia, that we loved and proud of this country. The national leaders and the world one of them is educated in the National Resilience Institute of the Republic of Indonesia, that is expected to take control and make the right also measurable decision by considering national and international development.
LEADER AND LEADERSHIP CRITERIA FOR INDONESIA
From various scientific texts, usually we will get many uncountable definitions and criteria of leader and leadership. For example From the political circles, we need to look at Winston Churchill thought, which stressed the need for patience and solidarity between leaders and their people, especially when the country was in a difficult situation. On the other hand, this leader also pressed the importance of nation
character building in education before becoming a leader. From strategic circles like Sun Tzu for instance, stated that leader is the people who are required to fully understand the condition of his country first, before dealing with other countries. Furthermore, the study of management experts such as Alvin Toffler for example, we can see that if the leaders are those who are able to understand the challenges of the future and also able to visualize the future configuration of science and technology, before making a final decision. From many definitions of leader and leadership that are made based on various organization experiences and profession. In my perspective, it is appropriate that if we refer and take inspiration from the strategic thought that was built by our own people. Is not our country now more democratic and not inferior to the developed countries that have long been our inspiration to go forward? and we explore the cultures of Indonesia. In my view, such as the Indonesian leadership theory developed by Ki Hajar Dewantara, requires that if the leaders are those who are able and willing to live with their people, who are able and willing to understand the hearts of their people, who are able and willing to work together with their people and approved after they are able and willing to work in those three positions, then they said they are able and willing to carry out the mandate of the people that they lead. Indonesia is also the land of the figures, as we known Bung Karno figures, which emphasizes the importance of the role of youth people in a continuous forward movement, as well as the importance of Pak Harto that requires a development must be carried out in stages, and following all stages of
management should be supported by modern conception, including manned by personnel who properly qualified on their field. From various view of the above, a fact illustrated that when a leader should have some personal qualities as well. First, realize that the sociological, psychological, and anthropological, if he is an integral part of his people, and therefore willing to work in the community starting from arrangement of the idealism and up to the implementation level. In the case found that, many ideas of people have not been grounded, less profound, and not conceptually yet, then it is the leader's job to make these ideas become more operational and functional. Second, the leaders should have high managerial abilities, to mobilize all the potential that exists in society, for a shared goal. This goal should be a great goal, and not a monopoly as the power of certain forces that exist in society. Common goals that should be free from foreign interests, who want to use the momentum of the forward movement of a more democratic Indonesia, civilized, justice, and obey the law. In this context, we mean that leaders should be acutely aware of the law, both national law and international law, and able to manage the existing national potential as human resources and natural resources in a sustainable manner. Third, leaders should also be a nationalist and globalist, in a sense of able to place himself as a true and fair Indonesian, and no longer as representatives of political parties and socio-economic and cultural forces, which have been raised and fought for it. While the globalist in this case means that the leader is a citizen of Indonesia who are aware, if this country is part of a world that is evolving toward justice, prosperi-
The President Post
ty, and solidarity. In this context, the leaders must dare to criticize the countries in the world, if they play with the international legal order for their national interest. Fourth, leaders should also be a knight, who had to bear the risk of the national policy they made, including those made by their subordinates, and be responsible before the law is not only unconstitutional, but also fair and impartial. Fifth, leaders should also realize that if the leadership is not forever, but situational. Thus, leaders should optimally carry out the mandate properly and openly, so that it can be measured that it is not just a moral society, but also constitutional.
CHALLENGES FOR AN INDONESIA THAT WORLD’S RESPECTED
Learning from my experience and national leaders during this live, the world's respect for a country only occurs due to two achievements. In this case, a combination of success to prosper and welfare for its people, then recognition of the achievements of other countries, because it gives them inspiration to do the same. How do we as leaders should behave?. Honestly, we should really appreciate the respect given by the world for the Republic of Indonesia, whether the government is currently carrying out their duties as well as its people and for the fighters. We are grateful for all the accolades and respects, whether we receive at bilateral, regional, and international level. But at the same condition, all the leaders should also understand, if they have to do more for their people, who trust the leader to lead them. Therefore, without intending to earn the respect of the world, the nation of Indonesia and we want
to identify the major challenges, which we need to pay attention together, and should be addressed on an ongoing basis by all the people in Indonesia along with their leaders. The first challenge in our view is necessary to achieve our goals successfully in the proclamation or national objectives, as outlined on the opening of the basic laws of 1945, Unitary Republic of Indonesia (NKRI) and national unity (Bhineka Tunggal Ika) as well as guided by the insights archipelago and national resilience. We should be able to describe in details and measured in all our national policies, through longterm, intermediate, and shortterm. The second challenge is the success that we achieve, and at least approaching the target of the Millennium Development Goals (MDGs) before 2015, in which our society reaches the better level of education and health, value to the environment, and able to solve the problems in the country to promote the moral, ethical, cultural, and legal. The third challenge in view of the future success of our nation, Indonesia is a major country in southeast Asia region, and a warrior in pursuit of the noble values that have been outlined in the ASEAN Charter, such as the ASEAN Economic Community, ASEAN Political and Security Community, and ASEAN Social and Cultural Community. The fourth challenge is the success of the Indonesian nation to achieve the commitments that we have agreed upon on the Asia Pacific Economic Cooperation (APEC), Asia Europe Meeting (ASEM), as well as all of the environmental agreements at regional level and the world, including to fight in various international forums.
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
For that reason, we should oblige ourselves to build the existing potential leadership, which has been built through the history of our own education. Then, we should note that our values implement continuously, such as building leadership by preparing a cadre of professional fields, obey the law in our environment, appreciate the differences between national and international community, faith to move forward together and build together in a democratic way, and finally voluntarily accept a leadership mandate. To implement a leadership mandate, it is needed a strong foundation, that is culture and customs, as well as ethics and morals become a major cornerstone in global thinking. Furthermore, the nation's independence by giving local autonomy as the strength and capability of national resilience of Indonesia.
PERSONAL INFORMATION Name
Mr
Mrs
Ms
Renew Address
Home
Office Postal Code
Date of Birth Position
Phone
Jabodetabek
The President Post
From the explanations that have been stated above, envisaged a reality if the practice of leadership is a process. It is difficult to find the ideal posture of leadership, and also the posture of successful leadership. Grounded on this principle, I intended to invite all of us to think smart in anticipating the changes that growing rapidly, practice leadership at the micro level, and then interact with the wider environment.
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
LEADERSHIP THAT IS RESPECTED THE WORLD TO INDONESIA
The President Post - Circulation Departments
THE SPIRIT OF INDONESIA
SUBSCRIBE NOW
The fifth challenge is the successes of the Indonesian nation, to be a fair mediator in international crises, to uphold the principles of free and active, and at the same time introducing the world with our sincerity to implement Pancasila as a state of ideology. Pancasila ideology is the ideology of our nation, we should be able to socialize to the world, for the achievement of a fair, right, and responsible democratic principles.
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
April 2012 A3
Perspective Current Trends In The Global Economy With the rise of emerging countries new forces are coming into play in the global economy. There is the BRIC group (Brazil, Russia, India and China), the G20 composed of developed and developing countries; and the G8. Also, East Asia, reflecting the moves towards the emergence of a new world and the new balance of power. By Atmono Suryo
T
GLOBAL CHANGE
he world is currently in the process of great changes. It is a world in transition with the US and Europe caught in a declining trend. There are various views on how the world landscape will emerge in the decades to come. The World Bank in particular seems to be firm in its forecast that the world is becoming a multi-polar world. With the rise of emerging countries new forces are coming into play in the global economy. There is the BRIC group (Brazil, Russia, India and China), the G20 composed of developed and developing countries; and the G8. Also, East Asia, reflecting the moves towards the emergence of a new world and the new balance of power.
Instability
In this current interdependent world and with the global change in progress, however, it becomes increasingly difficult to make meaningful assessments on shortterm economic matters. There are too many factors at play. Even predictions by the World Bank, IMF or the UN will have to be changed constantly. As we are now in the first part of 2012, we may observe that sev-
world economic power, while India will be the sixth one, ahead of Italy but behind France. There is the general consensus that the centre of gravity of world production will move towards Asia. China, India and Korea are being considered as key countries. With the addition of Japan, Thailand, Taiwan and Indonesia, the share of Asia would reach more than 30% of the world GDP surpassing the EU. Such predictions are mentioned in the publication on The World in 2025. (Note: of course it has still to be proven whether the predictions will be right)
eral factors are coming up, which will have its impact not on the trend of global short-term growth but also on the longer-term global change. As a start the pace of global recovery has been slowing down during last year. Then there is the factor of the price of oil which is now in the limelight, coupled with the uncertainties of growth in the developed countries. Even the weak demand of wage-earners in the developed countries has now to be watched. Global private demand and inflation are also factors of uncertainty. All these factors make it difficult for observers (especially in inward-looking countries like Indonesia) to make the right analysis and conclusions about the trend of development in the global and regional economy. Yet, it is highly important for Indonesia to be alert with the developments in the world to make the right judgments. To continue be too inward-looking – to have negative mind-set -caught only on relatively “small matters” can result in a disaster and the decline of our country.
DEVELOPING COUNTRIES
What constitutes a positive factor in the global economy is the rapid recovery of the developing countries, particularly in the
Structural change
significant rise of people’s purchasing power and the rise of the middle-income group. It is proven that an increase of domestic demand in emerging countries can be a driving force for growth, and not necessarily as the main cause for higher inflation. The availability of domestic credit seems also to be a main factor for growth and resilience of the economies of emerging countries.
called The World in 2025, it is stated that when it comes to population it is predicted by the UN that 61% of the world population in 2025 will be in Asia compared to only 6.5% In the European Union. Population growth in Asia has its negative but also it positive economic impact. Rise in populations with higher purchasing power will increase consumption and develop markets.
There is the need for developing countries to make structural changes in their economies to cope with the process of global change. For countries in Asia, including Indonesia, the commodities sector of their economies has been of traditional importance ever since colonial times, some decades ago. To have an economy based on commodities, however, is presently becoming some kind of a dilemma for the countries concerned. It is being associated with a colonial economy, not in tune with the current modern-type of economies which give higher priority to the development of manufactures and services.
TRENDS IN ASIA
When it comes to trade, it is expected that the volume of trade would double in 2025 in relation to 2005. It is forecast that the position of the European Union will be reversed. The EU will no longer be the first world exporter; it will be the turn of Asia. China is expected to become the second
Uncertainty and instability have indeed been the major distinguished features of commodity markets. Commodities are subject to the boom and bust cycles. Yet the countries in Asia, in particular Indonesia and other countries in Latin America such as Brazil and Africa, continue to keep their
www.bankofnaturalcapital.com
three countries in East Asia, China, India and Indonesia, which are showing high growth—the highest in the world. Such a positive economic trend, however, is not being seen or appreciated by the majority of the Indonesian public.
Need for positive approaches
Meanwhile, the global recession has served as a wake-up call for most developing countries. They have taken the required counter-cyclical measures, in building their economic and to define their growth paradigm. And for many developing countries the recovery of commodity prices and the expansion of domestic markets are one of the main drivers of growth. The extraordinary expansion of the domestic market reflects the
Big changes are in the air for Asia. Research is being taken among others by research insitutions in the European Union concerning the longer trend of Asia vis-à-vis Europe. It concerns a trend between 2005 and 2025. In an interesting publication
commodities as one of the pillars of their economy and exports. This is happening until today. But one can predict that the economic structure for commodities will undergo significant changes in the years ahead. These changes vary for the various groups and in the various producing countries. Some of these changes and the reasons thereof are as follows: • Value-added: In addition to the area of agriculture there is the need for a more intensive valueadded policies affecting, among others, the area of minerals, ores and metals • Food crisis: The food security objectives will demand the required strategies and policies on food commodities to secure the required quantities of food supply • Global growth: It is expected that global growth will require the increasing supply of raw materials, not only in the area of energy but in other areas of natural resources as well • Rural development: The intensification of the “commodities economy”, including in the area of agriculture, food and tropical beverages, forestry and fishery may help to lessen the problem of unemployment and urbanization • Climate change:; the effects of climate change require the greater care in the area of commodities In the area of structural change Indonesia has an important stake. Positive strategies, firm policies and effective actions are needed in this era of global change. Indonesia cannot afford to fail on this score.
The President Post
A4 April 2012
www.thepresidentpost.com
ASEAN East Asia: Quo Vadis ASEAN? PHOTOS: www.financialclub.co.id
With its strategic location in East Asia, in the midst of giant economies like China, Japan and India, coupled with its growing economies, abundant natural resources and its plentiful human capital, ASEAN will have the opportunity to become another powerhouse in East Asia. By Atmono Suryo
D
ECONOMIC COOPERATION
riven by the forces of globalization and the incredible rise of technological development, the world will be heading towards dramatic changes in this 21st century, affecting in many ways the East Asian region. The ASEAN countries, including Indonesia, are most fortunate to be located in this fast-moving region of the global economy. With its strategic location in East Asia, in the midst of giant economies like China, Japan and India, coupled with its growing economies, abundant natural resources and its plentiful human capital, ASEAN will have the opportunity to become another powerhouse in East Asia. But will it be possible for ASEAN undertake the necessary steps and to achieve it, as a regional grouping? The question arises where ASEAN actually stands in the upcoming developments and challenges facing East Asia and also in the larger Asia-Pacific region. After all, the world predicts that the 21st century will become the Asia-Pacific century. And ASEAN should become an integral part of the new regional modern landscape. But one has the impression that
not much is known by the people in ASEAN (Indonesia in particular), as to what strategies and policies ASEAN has in store towards this potential region in the world. East Asia is no doubt of strategic importance to ASEAN, but the pertinent question is, what kind of an East Asian economic architecture has ASEAN in mind. And what role it intends to play as it intends to continue to be at center stage. It should, indeed, be quite amazing to see ASEAN’s achievement to form the EAS (East Asian Summit) comprising of 18 countries, namely the ASEAN 10 countries plus China, Japan, Republic of Korea, India, Australia, New Zealand, USA and Russia. Every year presidents and of such eminent countries gather at the East Asia Summit, but people keep wondering what their goals are.
Panel discussion
A panel discussion was organized recently by the Financial Club, in cooperation with CIMB Niaga, World Bank Indonesia, ERIA and the Paramadina University. The theme of discussion was “East Asia: To foster economic and business cooperation – Strengthening the Supply Chain”.
EAST ASIA
As Stefan Koeberle, World Bank Country Director, stated the next
tive Dr Narjoko, the production network developing in East Asia is quite unique compared to the other regions in the world. In the area of machinery and components, countries like the Philippines, Singapore, South Korea, Taiwan and Malaysia are already on the move over the period 2000-07. Indonesia lags far behind.
Stefan Koeberle World Bank Country Director A panel discussion was organized recently by the Financial Club, in cooperation with CIMB Niaga, World Bank Indonesia, ERIA and the Paramadina University. The theme of discussion was “East Asia: To foster economic and business cooperation – Strengthening the Supply Chain”.
30 years will see East Asia become an even more important contributor to global growth. Strong future growth is supported by domestic drivers and regional trends. But what will be the regional trend. Will it be a trend largely dominated by two giant countries (China and India)? Or will it be possible to foster economic and business cooperation through a number of cooperation or integration devices? On this question Koeberle is of the opinion that we should learn the right lessons from managing openness around the world: to implement complementary policies to maximize the benefit from economic integration/ Also to take such measures such as: • Addressing challenges in infrastructure and skills constraints • Having a sound regulatory framework for competition • Having a credible social protec-
tion program to address the adverse impact of economic integration
Possible Tasks Ahead
As a layman one may draw up some possible tasks which will be facing ASEAN in the upcoming East Asia: • In the first place, there is the need for ASEAN to ensure effective implementation of the ASEAN Economic Community by 2015. This integration process was designed to strengthen the ASEAN economy; • To design the strategy to foster the enhanced economic and political role of ASEAN in East Asia and, wherever possible, also in the global economy not only through the G20 but also through other international forums; • To come up with alternative schemes to design the right economic integration in East Asia. (Note: It is known that some
countries including Indonesia are apparently not very keen to apply integration schemes); • To work out and promote closer economic cooperation programmes in various fields, particularly among the countries in the East Asia region. No doubt the opportunities and potentials are large. The momentum has come for ASEAN to come up with its strategy and workable schemes to play an enhanced and a more effective role in East Asia, a region which will be a key center of the forthcoming global multipolar world.
REGIONAL SUPPLY/ PRODUCTION CHAIN
There is the impression that Indonesia is excluded from the Supply Chain developing in the regional and global economy. But that is fortunately not the case. It is not known by the general public that large companies have al-
The next 30 years will see East Asia become an even more important contributor to global growth. Strong future growth is supported by domestic drivers and regional trends. ready been at work in this rather new trade and production practices. As explained by Vice President of CIMB Niaga Katrin Hadiman, CIMB Niaga is already supporting a number of companies (over 60) involved in supply chain transactions, covering large amounts of transactions (Rp425 billion) and some millions of US dollars with outstanding business of over the Rp3 trillion. As stated by ERIA representa-
Indonesia seems to have its comparitive advantage in the area of food production, automotive and textiles. The country is already involved in this global supply chain in these areas as done by several large companies. A more intensive involvement in the regional supply chain would be benefit the SME’s (especially the medium enterprises) in Indonesia. More intensive work has to be done to identify the potential areas for Indonesian medium enterprises. It would also be to the benefit to the Indonesian economy if the country could be the production or assembly center for a number of important manufacturing products. Not only in the automotive, food and textile industries, but also in such areas as electronics, electric and household goods. Perhaps it would be beneficial if we also develop some heavy equipment industries to produce the equipment which the country and ASEAN need for the development of its natural resources and infrastructure projects. The exports of such products or equipment would also strengthen Indonesia’s exports. The writer is former ambassador to the EU
The President Post
www.thepresidentpost.com
April 2012 A5
The Economy ECONOMIC UPDATES Q1 Growth Projected at 6.5% The Finance Ministry has predicted the domestic economy will continue to grow significantly by 6.5 percent during the first quarter of this year, despite the low export performance. "I hope the first-quarter growth would remain at 6.5%," acting chief of the ministry`s fiscal policy board (BKF), Bambang Brodjonegoro, said here on Monday. The first-quarter growth would mainly be fueled by strong household consumption and investment, he said. He further predicted that domestic consumption and investment would remain high until the end of this year, while exports would be disrupted as a result of a persistent slowdown in the economies of export destinations, such as the United States and Europe. "Investment and consumption must be able to take over the role of exports in 2012. If investments grow in a range of 9-10% this year, it could cover the lost growth caused by low exports," he said. The Central Statistics Agency (BPS) recorded the 2011 national economic growth rate at 6.5%, fueled by household consumption, which grew by 4.7%, government consumption by 3.2% and gross fixed capital formation at 8.8%. Additionally, Indonesia`s exports last year grew by 13.6% and its imports by 13.3%. All economic sectors recorded growth last year, with the transportation and communication sector taking the lead at 10.7%. Under the revised 2012 state budget, the government set an economic growth target of 6.5% for this year, or 0.2% lower than the assumed growth of 6.7% in the 2012 state budget.
Govt Allocates Rp30t for Micro-credit Loans in 2012 The government in 2012 allocated Rp30 trillion for micro-credit loans to small and medium businesses, according to a minister. "The amount of credit for 2012 is bigger than last year`s of Rp25 trillion," Small and Medium Enterprises Minister Syarief Hasan said here on Monday. He expressed hope the loans would increase the spirit of entrepreneurship among the public and provide a large number of job opportunities. "We have prepared a loaning mechanism where people who borrow less than Rp20 milSyarief Hasan lion from banks won`t need to provide Medium Enterprises Minister collateral," said the minister. According to data, there are currently 55.2 million small and medium sized enterprises in Indonesia.
President To Outline Five Measures To Safeguard Economy www.tempointeraktif.com
President Yudhoyono is optimistic that in 2012 Indonesia will be able to overcome its economic challenges, if his proposed policies are correctly implemented and supported by all agencies.
P
resident Susilo Bambang Yudhoyono is preparing five measures to safeguard the economy and assure continued economic progress. "We discussed five measures yesterday. I call them five policies that we must make and implement," he said at a limited meeting on the 2012 revised budget at his office here recently.
creased austerity, which is hoped will become a common goal of all national agencies. The fourth policy is connected to the use of natural gas and is expected to boost industries and the progress of real sectors to maintain economic growth. "This is also connected with our electricity problem and the efforts to reduce the use of fuel oil in power plants. Correct and quick efforts need to be made on all lines," the President said. He said the fifth policy deals with investment. "We wish to increase investments this year, next year and in the years ahead," he noted.
"We discussed five measures yesterday. I call them five policies that we must make and implement."
The first policy deals with securing the 2012 revised budget, if the price of subsidized fuels is not raised. The second policy calls for increasing state revenues he said, adding, that efforts to increase revenues must not be made by levying new taxes that are counter-productive. "I see that there is still an opportunity to do it in a viable way. There are sources available, such as found in certain mines, instead of exploiting taxes across all sectors. That will be counter-productive. However, real efforts must be made to increase state revenues," he added. The third policy focuses on in-
President Yudhoyono is optimistic that in 2012 Indonesia will be able to overcome its economic challenges, if his proposed policies are correctly implemented and supported by all agencies. "In view of that, let us create and assure conditions for it so that investments will progress. If the five policies are managed well, I am optimistic that our economy in 2012 will be safe," he said.
President Susilo Bambang Yudhoyono
ADB Predicts 6.4% Growth in 2012 The Asian Development Bank (ADB) has predicted the nation`s economic growth will reach 6.4% in 2012, following the global economic slowdown caused by the crisis in Europe, ADB economist Edimon Ginting said here on Wednesday. "Indonesia will retain its economic growth at 6.4% by keeping on guard against the weakening of export and capital outflow this year," Ginting explained. But he also predicted that the economic growth in 2013 would rise by 6.7% following the recov-
ery of the trade and investment sectors. Ginting further explained that the government has done many things to increase economic resistance against external economic shocks, since the consumer and business sectors would expand this year. "The uncertainty in Europe still affects the nation`s economic growth, but it is manageable because Indonesia is one of the foreign investment destination countries, besides China, India, and Brazil," Ginting said.
Meanwhile, ADB Indonesian representative John D Lindborg said Indonesia`s economy still might grow stronger. "The momentum of economic growth in Southeast Asia continues to take place and, in general, Indonesian economic growth has experienced an adjustment in a better direction," he said. Based on ADB reports, Indonesia had economic growth at 6.5% in 2011, which was supported by strong domestic consumption, investment, and net exports.
The President Post
A6 April 2012
www.thepresidentpost.com
Executive Highlights Selected Instant Indicators GDP GROWTH (&) By Quarter 105 104.7
18,000 3,750
113 175 6.3 5.5
6.0
6.1
6.5
6.7 6.7 6.1
5.9
6.8 6.2 6.3 6.2
5.9 5.4
5.3
6.4 6.5 6.5 6.5
6.3
165
104.0
108
103
$104.27 103
5.8
4.6 4.2 4.2
4.5
$103.3
3,500 M$3,480
98 3,250
M$3,378 93
101
88
3,000
83 10
99 Mar 11
11 2011
Apr
May
J
Jul
A
Sep
O
Nov
2011
Dec-11
Jan 12
Feb
Mar
2,750
78 Feb-11
M
2012
Apr
May
J
Jul
A
Sep
Oct
Nov
Dec
J-12 Feb
2011
Mar Apr 11
May
J
Jul
A
2011
Sep
O
Nov
Dec
J-12
Feb
Mar
2012
*Q4 2000 = 100
The World Bank revised its economic growth projections for Indonesia to 6.1% from 6.2% previously THE WORLD BANK REVISED ITS ECONOMIC GROWTH PROJECTIONS FOR INDONESIA TO 6.1% FROM 6.2% PREVIOUSLY in its quarterly economic report published earlier this month. The bank retained its projection of 6.4% growth in 2013. It said the downward revision for 2012 reflected growing signs over the past three months of a global economic slowdown that has impacted trade between Indonesia and key partners like China and India. The bank, meanwhile, criticized the recent failure to immediately raise fuel prices following recent approval of the revised 2012 budget as a “missed opportunity”. It emphasized that to achieve higher growth, Indonesia needed to reallocate subsidy expenditures into more productive areas like infrastructure and education. Shubham Chaudhuri, the World Bank’s lead economist for Indonesia, said if this was done the country could achieve growth levels of seven percent or higher. The bank warned that the budget deficit could rise to 3.1% from the current estimate of 2.2% if gas prices weren’t raised and if oil prices averaged US$120 per barrel over the coming year. The bank forecast inflation of 5.4% for 2012 under this scenario, and 8.5% if the government raised gas prices in Q3 as some analysts are expecting.
President Yudhoyono said he plans to implement a national austerity program to ensure the government maintains a healthy fiscal portfolio PRESIDENT YUDHOYONO SAID HE PLANS TO IMPLEMENT A NATIONAL AUSTERITY PROGRAM (GERAKAN PENGHEMATAN NASIONAL) TO ENSURE THE GOVERNMENT MAINTAINS A HEALTHY FISCAL PORTFOLIO. The initiative is in response to parliament’s recent approval of the revised 2012 budget that rejected the government’s proposal to immediately raise gas prices by 33% and only provided for a conditional price increase once the six-month average of Indonesia’s benchmark crude (ICP) exceeds the budget assumption of $105 a barrel by 15%. (The ICP sixmonth average as of end-March was US$116.5 or 11% above the budget assumption). Few details of the president’s program have been provided. Several key points Yudhoyono has made include an across the board effort to reduce spending at the central government and regional levels and an acceleration of the government’s conversion program from gasoline to natural gas for transportation, including the production of 250,000 vehicle conversion kits and construction of necessary supporting infrastructure by 2014. The president is also looking to prohibit certain vehicles from purchasing subsidized fuel and raise government revenues possibly with additional taxes on the
extractive industries. Yudhoyono is expected to issue a presidential decree in the coming month to administer the program.
Singapore-based DBS Group is acquiring Bank Danamon for US$7.2 Billion SINGAPORE-BASED DBS GROUP IS ACQUIRING BANK DANAMON FOR US$7.2 BILLION. Danamon is Indonesia’s sixth largest lender by assets, and the deal represents one of the largest bank takeovers ever in Southeast Asia and the largest takeover of any kind in Indonesia. DBS said the deal was an attractive opportunity given Indonesia’s expanding middle class and rising levels of domestic consumption. The country also has one of the lowest retail loans to GDP ratios in Asia, indicating substantial room for banks to expand. Danamon already has 1,400 branches serving millions of customers across the archipelago. DBS chief executive Piyush Gupta said the acquisition would ultimately change the bank’s profile from being a fundamentally mature-market, lowmargin lender to materially being in a high-growth, high-margin market. Under the deal, DBS will pay US$4.9 billion in new shares to Singapore sovereign wealth fund Temasek holdings, which already owns a 29% stake in DBS. This will subsequently boost Temasek’s ownership in DBS to 40%. DBS will also spend US$2.3 billion in cash to buy the remaining shares in Danamon held by public investors.
PLN will begin soliciting bids this month for a Rp20 trillion electricity network linking the power grids for JavaBali and Sumatra STATE POWER UTILITY PLN WILL BEGIN SOLICITING BIDS THIS MONTH FOR A RP20 TRILLION ELECTRICITY NETWORK LINKING THE POWER GRIDS FOR JAVA-BALI AND SUMATRA. The project involves developing a 700-km integrated network to improve the economics of scale and overall efficiency for the 30,000 MW Java-Bali power system and the 3,000 MW Sumatra power system. The scope of the project includes installing converter stations at Muara Enim, South Sumatra and Bogor, West Java; a 40-km, 500 kV DC subsea transmission line across the Sunda Straits linking Ketapang, Lampung and Salira, Banten; a 500 kV DC air transmission line from Muara Enim-KetapangSalira-Bogor; and a 500 kV DC air transmission line liking the Muara Enim converter station, the Bogor converter station and the 500 KV Java-Bali transmission grid. The project will be partly funded by loans from the Japan International Cooperation Agency (JICA). PLN is also currently receiving technical support for the project from Japan’s Newjec Inc. and J-Power. Construction of the
network is scheduled to start next year, with commercial operations slated for 2017.
Mining services firm Petrosea was awarded a fiveyear, coal mining contract extension from Gunungbayan Pratamacoal worth a total US$600 million MINING SERVICES FIRM PETROSEA WAS AWARDED A FIVEYEAR, COAL MINING CONTRACT EXTENSION FROM GUNUNGBAYAN PRATAMACOAL WORTH A TOTAL US$600 MILLION. Petrosea president director Wadyono Suliantoro said the deal extended the firm’s current overburden removal contract, which ends this year, for another five years. The deal also increased the overburden removal volume to 55 million bank cubic meters (bcm) per year from 36 million bcm per year previously. Eddie Chin, president director of Gunungbayan parent firm Bayan Resources, said the contract extension reflected its efforts to boost coal production and to take into account an increase in coal reserves at its mine in Muara Paho, East Kalimantan. He said Petrosea provided consistent and reliable mining services and had the necessary infrastructure to support Bayan’s expansion in Muara Paho. Petrosea is a subsidiary of Indika Energy.
Leighton Contractors Indonesia was awarded a sevenyear, US$430 million mining contract from coal producer Marunda Grahamineral LEIGHTON CONTRACTORS INDONESIA WAS AWARDED A SEVEN-YEAR, US$430 MILLION MINING CONTRACT FROM COAL PRODUCER MARUNDA GRAHAMINERAL. Under the deal, Leighton will provide a range of mining services for Marunda’s project in Murung Raya, Central Kalimantan for the extraction of over two million tons of high-quality thermal and coking coal per year. The services range from project management, mine planning, surveying, heavy equipment, maintenance, and site infrastructure. Justin Colling, president director of Leighton Contractors Indonesia, said the contract was a testament to the firm’s solid track record working in the Indonesian mining sector over the past 10 years. The deal is also significant as it represents Leighton’s first strategic move into coking coal mining in the emerging Central Kalimantan region. Marunda currently has around 65 million tons in coal reserves and 110 million tons in coal resources at its mining site in Murung Raya. Marunda is a venture between local businessman Saiman Ernawan and Itochu Coal Resources Australia.
LPEI said it plans to issue US$300 million in dollar-denominated global bonds this quarter STATE-OWNED INDONESIAN EXIMBANK (LPEI) SAID IT PLANS TO ISSUE US$300 MILLION IN DOLLAR-DENOMINATED GLOBAL BONDS THIS QUARTER. LPEI finance director Basuki Setyadjid said the lender has appointed Bank of Tokyo-Mitsubishi UFJ, HSBC and Standard Chartered Bank to act as underwriters for the deal. He said proceeds from the planned debt issue would be used to support expansion of LPEI’s export credit facilities. The lender is looking to boost its export credit facilities by 19% y-o-y to Rp24.4 trillion. Basuki stated that LPEI was looking to boost the amount of loans that go to small businesses this year to 10% of the lender’s total loans, from 8.5% a year earlier. He said the firm was also looking to further expand lending in eastern Indonesia this year. As of end2011, LPEI reported total assets of Rp26.3 trillion, up 28% y-o-y, and net profits totaling Rp460 billion, up 135% y-o-y.
India’s Essar Shipping was awarded a US$121 million contract to drill 11 offshore wells in Indonesia for ConocoPhillips INDIA’S ESSAR SHIPPING WAS AWARDED A US$121 MILLION CONTRACT TO DRILL 11 OFFSHORE WELLS IN INDONESIA FOR CONOCOPHILLIPS. Essar said it would be mobilizing its semi-submersible offshore drilling unit Essar Wildcat for the contract. Essar managing director A.R. Ramakrishnan said the firm’s ability to secure the deal amid strong competition from more well-known competitors would open more opportunities to expand its business in Asia’s Far East market. ConocoPhillips currently has four offshore blocks in Indonesia under development. These are the South Natuna Sea Block B production sharing contract (PSC) with two producing oil fields and 16 gas fields in various phases of development; the Amborip VI PSC in the Arafura Sea south of Papua; the Arafura Sea PSC near the Amborip block; and the Kuma PSC in the deepwater, frontier exploration area of the East Makassar Straits offshore East Kalimantan.
Property developer Pakuwon Jati has secured a Rp935 billion loan from a bank syndicate comprising BCA, Bank CIMB Niaga and Bank ICBC Indonesia PROPERTY DEVELOPER PAKUWON JATI HAS SECURED A RP935 BILLION LOAN FROM A
BANK SYNDICATE COMPRISING BCA, BANK CIMB NIAGA AND BANK ICBC INDONESIA. The funds will be largely used to refinance firm’s dollar denominated bonds. The company stated that the loan would lower its foreign currency risk given the rupiah’s current volatility, and would also lower interest payments given the loan’s 10-10.5% rate compared to the 12% charge for the dollar-based bond. The refinancing is expected to provide Pakuwon more flexibility in developing ongoing projects. Company spokesperson Irene Tedja Murdaya stated that the first phase of its Kota Kasablanka project in Jakarta’s central business district would be completed this year and would include a mall, two office buildings and four condominium towers. She said the firm would also continue expansion of its Pakuwon City and Tanjungan Plaza projects in Surabaya. Pakuwon Jati is owned by businessman Alexander Tedja.
Foods manufacturer Mayora Indah said it plans to issue Rp750 billion in debt paper next month FOODS MANUFACTURER MAYORA INDAH SAID IT PLANS TO ISSUE RP750 BILLION IN DEBT PAPER NEXT MONTH. The debt will comprise Rp500 billion in seven-year conventional bonds and Rp250 billion in five-year Islamic bonds. Company executive David Atmadja said proceeds from the debt issue would be used to upgrade its biscuit production facilities in Tangerang, construct a new cacao processing plant and fund expansion of its wafer, chocolate and candy division. Mayo-
ra’s debt paper has received an idAA- rating from local ratings agency Pefindo. The company has appointed Danareksa Sekuritas and Mandiri Sekuritas as underwriters for the deal. Mayora is forecasting 2012 sales to rise by 20% y-o-y to Rp11.4 trillion, with net profits projected to rise by 33-38% y-o-y to Rp625-650 billion on the back of solid consumer demand and lower raw material costs.
Eurocopter has finalized a deal to supply six EC725 helicopters for the Indonesian air force EUROCOPTER HAS FINALIZED A DEAL TO SUPPLY SIX EC725 HELICOPTERS FOR THE INDONESIAN AIR FORCE. No financial details were provided. The EC725, a combat-proven multirole helicopter in the Super Puma aircraft class, was selected by the air force late last year for a combat search and rescue capable helicopter fleet. Under the contract, Eurocopter will supply the helicopters to state aerospace firm Dirgantara Indonesia for reassembly and customization before delivery to the air force. Eurocopter senior vice president Olivier Lambert said the deal demonstrated the Indonesian air force’s confidence in the Super Puma family of helicopters and enabled further strengthening of its relationship with Dirgantara Indonesia. Dirgantara Indonesia president director Budi Santoso said the contract would propel the firm into a new era of cooperation with Eurocopter and enhance its capabilities in rotorcraft technology. Eurocopter is a subsidiary of European aviation giant EADS.
Nusantara Infrastructure has acquired a 39% stake in Panjang Seaport in a US$11 million deal NUSANTARA INFRASTRUCTURE HAS ACQUIRED A 39% STAKE IN PANJANG SEAPORT IN LAMPUNG, SOUTHERN SUMATRA IN A US$11 MILLION DEAL. The deal makes Nusantara Infrastructure the first private company to operate a seaport in Indonesia. Panjang seaport processes shipments of commodities, fertilizer and other chemical products. It currently has a 300 meter dock, and an 11,200 square meter storage area with a dry bulk capacity of 60,000 metric tons and liquid bulk capacity of 15,000 metric tons. Nusantara Infrastructure president director Ramdani Basri said the firm aimed to develop the seaport into an international hub that supports the shipping of Indonesian commodities to global trade centers in Europe, India and other countries. Nusantara Infrastructure is affiliated with the Rajawali Group run by industrialist Peter Sondakh.
Executive Highlights are contributed to The President Post by CASTLEASIA/PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program. They are reprinted here with permission. For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@ castleasia.com subject CEO Forum
The President Post
www.thepresidentpost.com
April 2012 A7
Education U.S Ambassador Scott Marciel Encourages Indonesians to Study in the U.S. The number of Indonesian students studying in the U.S. this year is expected to reach 16,000 or doubled that of last year’s figures. Scot Marciel encouraged President University students to continue their studies in the United States.
U
.S. Ambassador to Indonesia Scott Marciel encouraged Indonesian students to study in the Unit-
ed States. The number of Indonesian students studying in the U.S. this year is expected to reach 16,000 or doubled that of last year’s figures. Scot Marciel encouraged President University students to continue their studies in the United States. Speaking at an international seminar entitled “USA-Indonesia Relations: Policy, Business, and Entrepreneurship” held at President University on 12 April, the U.S. ambassador said the U.S. and Indonesian cultures are not that much different. Scott said Indonesians have had a wrong perception about the U.S. culture due to stereotyping and misunderstanding that clouded their views. He add-
ed that cultures between the two countries have a lot of similarity. The U.S. embassy chose President University (PresUniv) to host the seminar after conducting a survey on top universities in Bekasi and Depok several months
before the event was held. Jhanghiz Syahrivar, moderator in the seminar, said that the U.S. ambassador’s visit to the university reflects the acknowledgment and appreciation of an advanced nation towards President Univer-
www.presidensby.info/Cahyo
British Education and Science Minister David Willets and Indonesian National Education and Culture Minister Muhammad Nuh signed the MoU in April in conjunction with British Prime Minister David Cameron’s visit to Indonesia.
Britain, Indonesia Enhance Education Partnership Indonesia and Britain are cementing their education cooperation by renewing the memorandum of understanding they signed in 2005. British Education and Science Minister David Willets and Indonesian National Education and Culture Minister Muhammad Nuh signed the MoU in April in conjunction with British Prime Minister David Cameron’s visit to Indonesia. “We want to strengthen Britain’s and Indonesia’s friendship. I had a discussion with the Indonesian education minister and we want to bolster the cooperation between the two countries. I can announce today about an enhanced partnership between Britain and Indonesia in the education field,” said David Willetts. The British prime minister’s bilateral visit to Indonesia focused on five areas: trade, investment, education, democracy and climate change. During his visit, Cameron was accompanied by British education and trade ministers.
We want to strengthen Britain’s and Indonesia’s friendship. I had a discussion with the Indonesian education minister and we want to bolster the cooperation between the two countries. I can announce today about an enhanced partnership between Britain and Indonesia in the education field.” David Willetts British Education and Science Minister
Indonesian President Susilo Bambang Yudhoyono said both countries agreed to enhance ties in the education sector. Cooperation between universities will be further improved. “The opportunity for Indonesian students who want to study in Britain or vice versa is wide open,” said SBY. Enhanced cooperation between the two countries included cooperation between top universities in Indonesia and Britain. Britain also pledged its commitment to fund and train selected Indonesian English teachers. Willetts announced a Rp2.8 billion fund to support the education partnership between the two countries. The partnership will be realized through English program training for thousands of teachers, coach assistant, and social workers through the British Council. The program is hoped to help improve Indonesia’s human resources skills.
sity, which is known as an international-class university in Indonesia. The seminar, which started at 10am and finished at 4pm, was attended by distinguished guests
such as U.S. embassy, American Chamber of Commerce, USAID, and Indonesia-US KADIN committee members Ted Osius, Edward Grulich, Jim Carouso, David Gossack, Frank Whitaker, Arend Zwartjes, Marika Olson,
Andrew White, and John Riady. The topics discussed included scholarships in the U.S. and visa process, business opportunities in Indonesia, U.S. foreign policies, US-Indonesia diplomatic ties, and entrepreneurship.
The seminar was attended by distinguished guests such as U.S. embassy, American Chamber of Commerce, USAID, and IndonesiaUS KADIN committee members Ted Osius, Edward Grulich, Jim Carouso, David Gossack, Frank Whitaker, Arend Zwartjes, Marika Olson, Andrew White, and John Riady.
The President Post
A8 April 2012
www.thepresidentpost.com
Technology Skype Now Available for Windows Phone Skype has announced that it’s finally ready to arrive on its good friend’s mobile platform, Windows Phone. It is getting its very own Skype app – at least, a beta version. This early version will allow free audio and video calls over WiFi or 3G, alongside those any-number paid-for calls.
S
kype indicated this is the first of many releases to come for Windows Phone, adding that the company believes in the great potential of the Windows Phone platform and will continue to invest over time to enable experiences unmatched by any other app in the market. Founded in 2003 and headquartered in Luxembourg, Skype was acquired by Microsoft in October last year in a $8.5 billion acquisition. Microsoft said that Skype would be integrated with its products, but without affecting availability of the popular Internet telephony application on plat-
forms from competitors. Skype functions as a business division within the company. Available for use on 4G, 3G, and Wi-Fi networks, Skype for Windows Phone has since the initial beta app added some new features including video calling in portrait mode and friend management capabilities including invite, accept invitations, block, and unblock contacts. Consumers can place calls over a Wi-Fi connection or a mobile data connection, though Skype recommends a strong Wi-Fi connection for bestquality video calling. Skype on Windows Phone will work on all Windows Phones running 7.5 Mango and above. The app, available in 18 lan-
guages, brings users of phones running Windows Phone into the mainstream of 200 million people who use the Skype service every month on smartphones and tablets running Android, iOS, and Symbian, computers and laptops. Users can download the app directly from their Windows Phone but Skype warned it may take up to 48 hours for the app to propagate in all local Windows Phone Marketplaces. The app has also been tested and certified for performance on seven models of HTC, Samsung, and Nokia phones. These are the Lumia 710, Lumia 800 and Lumia 900 from Nokia, Titan and Radar from HTC, and Samsung Focus S and Samsung Focus Flash.
www.microsoft.com
Panasonic ‘Pistol-Grip’ Camcorder HX- WA20 www.pixmania.co.uk
Panasonic HX-WA20 HD Waterproof and Dustproof allows active shooting at anytime, even while snorkeling, surfing or doing other water sports, or on rainy days. The dustproof construction also lets you use it at sandy beaches or in dusty places. It’s the ideal camcorder for outdoor use. All the new additions feature an ergonomic vertical design for stable, single-handed shooting. The stylish WA20 is optimized for shooting in not only rainy weather but also dusty conditions by keeping moisture and dust out of the camera interior. Offering users more shooting fun in a variety of conditions, such as snorkeling and rugged outdoor activities, the WA20 is set to be a firm favorite.
Successor to the award winning HX-WA10, the WA20 takes a major step forward in image quality with the use of a new image sensor and image-enhancing engine that captures images in dimly lit situations, such as parties and sunset scenes in stunningly beautiful Full-HD glory. Waterproof up to a depth of three meters, the Panasonic HXWA20 allows users to snap images underwater for up to 60 minutes. The camera is also built with a dustproof design, making the WA20 ideal for a variety of outdoor conditions, without the worry of sand, dirt or anything else finding its way into the interior. Slow Motion Mode lets users capture those sporting moments, recording images at 240fps with a 640x360p resolution for 15 sec-
was reduced. In addition to providing motion judgment for the noise elimination process, the 3D Digital Noise Reduction function also lowers random noise. By allotting the bit rate for the noise consuming component to the video signal, compression efficiency is improved for crisp, clear videos.
onds or at 480 fps with a lower 320x 180p res for 15 seconds, with a playback of slow-motion images at 60 fps. On the flip-side, the HXWA20’s Burst Shooting is incredibly responsive for snapping those fast-moving scenes, capturing at a rate of 40 continuous images in 4 seconds. Users can also take 360 degree shots in Panoramic Mode simply by tilting the camera vertically or horizontally. It is built with High-Quality Image Engine which enables both excellent image quality and a compact body. Its image-processing algorithms and architecture were designed for high-speed processing, signal processing systems were optimized for noise reduction, and power consumption
HTC One X and V: Amazing Camera, Authentic Sound www.gadgetmix.com
HTC has launched the HTC smart phones One X and One V in Indonesia, both featuring the latest Android OS, Ice Cream Sandwich (4.0) and Sense 4.0 UI. The presence of HTC One X and V are challenging the dominance of the iPhone and the Samsung Galaxy. The HTC One X is the premium model of the One line. It features Nvidia’s Tegra 3 4-plus-1 processor running at 1.5GHz on at each core. That processing power is used to drive the 720p resolution display of the 4.7” screen. The One X also comes with 32GB internal storage as standard with 1GB RAM. It also has Near-Field Communication (NFC) and Bluetooth 4.0. HTC One X brings additional ‘core five’ to save the battery or battery-saving core. It also pinned the 8 mega pixel camera with flash LED display and front camera of 1.3 mega pixels. HTC One X camera can take a picture in 0.7 seconds and is capable of taking photographs in rapid succession even when the user can take photos while recording HD video. HTC is also pinning Media Link feature, allowing connectivity to
better audio quality. MicroSD slots are available on both phones.
HTC One S
HTC One X
support the HTC One X is connected to the TV with HDMI technology. The HTC One V brings back the curved lip design from the HTC Hero and Legend, although this time the trackball is omitted. The One V uses a 1GHz singlecore processor, 4GB internal storage, and 512MB RAM. The 3.7” display has 480×800 resolution. While the One V does not have NFC, it still has Bluetooth 4.0. Both phones have Google’s Android 4 OS (Ice Cream Sandwich) installed out of the box as well as
HTC One V
HTC’s own Sense 4 UI. While the One X uses an 8MP sensor and the One V uses a 5MP sensor, both phones uses a very fast f/2 aperture and a 28mm lens. The camera sensors on both use Back Illuminated Sensors for better low light images, as well as autofocus and flash. The One X can record up to 1080p video while the One V can record up to 720p. The One X features a 1.3MP front-facing camera for 720p video chats while the One V does not. Both phones also feature Beats Audio, which the Taiwanese company has recently acquired, for
HTC, a global designer of smartphones, unveiled its new HTC One series of smartphones. These gadgets represent HTC’s most premium mobile experience with a new level of iconic design and amazing camera and authentic sound experience. “The best moments in life are captured with a photo or remembered by a song, so it was key for the HTC One series to improve these emotional experiences with an amazing camera and authentic sound experience,” said Lennard Hoornik, president of HTC South Asia Pacific. With HTC’s most premium experience, the HTC One series integrates Android 4.0 (ICS) with HTCSense™ 4, the new version of HTC’s branded user experience that is introducing HTC ImageSense™, a new suite of camera and imaging features that set HTC One apart from other phones. HTC Sense 4 also includes broad enhancements to audio quality and simplifies how people listen to music on their phone. HTC One X will be available at suggested price Rp 6.5 million, while One V will be available at Rp 2.9 million.
The High-Quality Image Engine has evolved with original Intelligent Resolution Technology. This new technology confirms the edges of objects within the image, then emphasizes the edges for optimal clarity. Conversely, it reduces noise and enhances the natural smoothness of parts without edges like the sky. The increased sharpness is especially effective for images with delicate details. This highly advanced technology maximizes the beauty of Full-HD images. The HX-WA20 renders images in breathtaking, Full-HD (1920 x 1080) beauty, so you can save
your memories in stunning image quality and watch them on a largescreen TV. In addition to an optical 5x zoom, the New High-Quality Image Engine of the HX-WA20 lets you shoot videos with a maximum 15x Intelligent Zoom with no image quality degradation. Active E.I.S. enables handheld zooming without blurring. You get a flexible shooting range, from wide-angle to dynamic zooming. It has Slow Motion Mode which turns even simple, everyday scenes into impressive slowmotion images. Choose from two shooting modes: 240 fps (640x360) for 15 seconds, or 480 fps (320x180) for 15 seconds. It gives you sharp, crisp slow images of things like lightning-fast movements in sports, or fast-moving pets. The HX-WA20 captures even tiny details in 16-megapixel highresolution still pictures. Depending on the situation, you can flexibly shoot either high-quality 16-megapixel photos or FullHD videos. You can also capture 2 megapixel still images while recording a video by simply pressing the Still button.
Business BUSINESS BRIEFS Matahari to Pay Dividend Rp6 per Share Retail giant PT Matahari Putra Prima Tbk (MPPA) said shareholders agreed at their annual meeting on Thursday to distribute Rp32.26 billion of its last year`s profit as dividends, or equal to Rp6 per share. The dividends represented 30.7% of the company`s net profit, MPPA corporate secretary Danny Kojongian said. According to the company`s report conveyed to the Capital Market and Financial Institution Supervisory Board (Bapepam-LK), the company booked a net profit of Rp120 billion last year. Danny said Rp2 billion of the net profit would be used as reserve fund and Rp70.77 billion as retained earnings.
Jasa Marga to Sell Stake in CMNP
said here on Tuesday.
State-owned toll road operator PT Jasa Marga Tbk (JSMR) plans to sell its 81.6 million shares in privatelyrun toll road operator Citra Marga Nusaphala Persada Tbk (CMNP) later this year. “We have yet to decide how much and when the shares will be sold. Surely, we will sell all of our shares in CMNP,” Jasa Marga`s finance director Reynaldi Hermansyah
Jasa Marga will use proceeds from the sale of shares to support the construction of nine turnpikes that will cost an estimated Rp25 trillion, he said. Nearly 70% of the funds needed to finance the project will come from bank loans, including those from Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Jabar Banten, and Bank DKI, he said. The nine toll roads are Kebonjeruk-Ulujami, Bogor Ring Road, Cengkareng-Kunciran, Kunciran-Serpong, Semarang-Solo, GempolPandaan, Gempol-Pasuruan, and Benoa-Ngurah Rai-Nusa Dua. The other is Tol Porong-Gempol. The Kebon Jeruk-Ulujami toll road which covers a distance of 7.67 km will be a part of the Jakarta Outer Ring Road (JORR), a network of toll roads that will connect Jakarta to its satellite cities. The CengkarengKunciran and Kunciran-Serpong turnpikes are part of the second Jakarta Outer Ring Road (JORR-2).
The President Post
www.thepresidentpost.com April 2012 /// N0. 34
Telkom Booked Income of Rp71.3t Last Year www.indonesiafinancetoday.com
The income was chiefly fueled by cellular services, which grew by 6.90% to Rp 48.73 trillion from Rp 45.57 trillion.
S
As of December 31, 2011, the company`s EBITDA (Earning Before Interests, Taxes, Depreciation and Amortization) ratio, without the extra expenses of Rp 1.57 trillion, reached Rp 37.35 trillion, up by 1.40% from one year earlier. Firmansyah said the income
BNI 2011’s Trade Finance Transactions Worth $19 b The performance put the bank in the first place among Indonesian banks in terms of non-oil/nongas export-import transactions State-owned Bank Negara Indonesia (BNI) posted trade finance transactions worth $19.83 billion last year, up 72% from a year earlier. “With trade finance transactions reaching $19.83 billion, BNI held a 21% share of the banking industry`s export-import transactions in Indonesia,” Emil Ermindra, BNI CEO for Manado, said on Tuesday.
tate telecommunications operator PT Telekomunikasi Indonesia Tbk (Telkom) said its income rose by 3.8% to Rp 71.3 trillion last year from Rp 68.3 trillion one year previously. The increase reflected the positive growth of the company`s business amid the increasingly tougher competition among telecommunication operators, Telkom President Director Rinaldi Firmansyah said in a press statement released on March 30. Despite the performance, the company saw its net profit falling to Rp 10.965 trillion in 2011 from Rp 11.537 trillion the year before, the statement said.
B
The number of Telkom subscribers last year reached 129.86 million, a 7.8% increase compared with 120.47 million in 2010. was chiefly fueled by cellular services, which grew by 6.90% to Rp 48.73 trillion from Rp 45.57 trillion. By the end of 2011, the number of cellular phone subscribers rose by 13.8% to 107 million from one year earlier. The increase was also driven by income from data, internet and information technology ser-
vices, which jumped 20.80 percent to Rp 23.92 trillion from Rp 19.80 trillion. He said the tight competition prompted the company to invent new segments of services such as Internet Protocol Television (IPTV) under the Groovia TV brand and a remittance service under the Delima brand.
Overall, the number of Telkom subscribers last year reached 129.86 million, a 7.8% increase compared with 120.47 million in 2010. Nearly 107.02 million of the 129.860 subscribers were cellular subscribers, 8.6 million were wire line subscribers, and 14.24 million were fixed wireless telephone services.
The performance put the bank in the first place among Indonesian banks in terms of non-oil/non-gas export-import transactions, he said. “In the midst of tight competition among banks in Indonesia, BNI last year managed to regain the award it received in 2010, namely the Best Trade Finance Bank in Indonesia 2011 award,” he said. He said the success was inseparable from various supporting factors, including wide networks. The bank now has 1,479 outlets, five overseas branches, 197 document gathering posts and more than 1,466 correspondent banks.
Pelindo Obtains Rp5.1t Loans from State Banks Three state-owned banks will provide a loan facility amounting to Rp5.12 trillion for state-owned seaport operator PT Pelindo I to finance four projects until 2014, the port company director said. “The four projects are included in the Master Plan for the Acceleration and Expansion of Indonesia`s Economic Development (MP3EI),” PT Pelindo I Commercial Director, Bambang E Cahyana, said here on Monday.
Kuala Tanjung and container terminals in Belawan and Kuala Tanjung.
The four projects include the construction of crude palm oil (CPO) seaports of Dumai and
“The investment for all the projects totals about Rp6.4 trillion. About 80% (Rp5.12 trillion) of the funds are provided by a stateowned bank consortium of Bank Mandiri, Bank BNI and Bank BRI. The remaining Rp1.28 trillion funds will be taken from the firm`s internal sources,” Bambang said.
www.indonesiafinancetoday.com
Indonesia`s cement consumption last year grew by 17.7% to 48 million tons compared to 40.8 million tons in 2010.
Indocement’s Profit up 11.69% to Rp3.60 t The company’s cement sales grew by 15.2% to 16 million tons in 2011 from 13.9 million tons in 2010, with domestic sales increasing by 19.9% or higher than the average national growth of 17.7%. Publicly-listed cement maker PT Indocement Tunggal Prakarsa Tbk said its 2011 net profit, fueled by rising sales, rose by 11.69% to Rp3.60 trillion from Rp3.22 trillion one year earlier. The company`s cement sales grew by 15.2% to 16 million tons
in 2011 from 13.9 million tons in 2010, with domestic sales increasing by 19.9% or higher than the average national growth of 17.7%, the company`s corporate secretary, Sahat Panggabean, said here on Monday. The sale hike resulted in the company holding a 31.9% share of the domestic cement market last year, compared to 30.9% in 2010, he said. However, exports in 2011 fell by 41.5% to 600 thousand tons in 2010 as the company focused on fulfilling domestic needs, he noted. “The sale performance caused income to increase by 24.69% to Rp13.887 trillion in 2011 from
Rp11.13 trillion in 2010,” he said. He added that the company also recorded a profit of Rp305.727 billion from financial income last year, a 55.41% increase compared to Rp196.714 billion one year earlier. Meanwhile, operating expenses rose by 32.87% to Rp7.47 trillion in 2011 from Rp5.59 trillion in 2010, he said. As of December 31, 2011, Indocement`s total assets reached Rp18.15 trillion, up by 18.27% from Rp15.34 trillion in 2010. Indonesia`s cement consumption last year grew by 17.7% to 48 million tons compared to 40.8 million tons in 2010.
The President Post
B2 April 2012
www.thepresidentpost.com
Business Garuda Indonesia Aims for 22m Passengers in 2012 The flag carrier flew 17.1 million passengers in 2011 consisting of 13.9 million domestic passengers and 3.2 million international passengers.
P
T Garuda Indonesia Tbk. (GIAA) is expecting a passenger growth of around 30% to 22 millions this year from 17.1 millions last year. Its president director, Emirsyah Satar, said here on Wednesday the flag carrier flew 17.1 million passengers in 2011 consisting of 13.9 million domestic passengers
to carry 229,000 tons of cargo which was up 10.8% compared to 207,000 tons in the previous year.
and 3.2 million international passengers. “This is a growth of 36.2% from 12.5 million passengers in 2010,” he said.
Regarding flight frequency, Emirsyah said it also rose by 26.6$ to 130,043 flights in 2011 consisting of 108,381 domestic and 21,662 international flights.
Emirsyah said the production capacity (seat availability per kilometer/ASK) in 2011 also rose by 26% to 32.5 billion compared to 25.8 billion in 2010. Meanwhile Garuda has also been able
On fleet development and expansion in 2011 he said Garuda received 14 new planes in the year consisting of two A3330-200s and nine B727-800s Next Generation and three A320s for Citilink. So
in 2011 it operates a total of 87 planes with their average age of 6.5 years. E-Trading Securities Analyst Muhammad Wafi meanwhile said based on his research the process of efficiency and expansion (Quantum Leap) the management has pledged seemed to have been fruitful so far.”The business performance of Garuda individually or in group has shown a positive trend with load factor as a reference of corporate income shows improvement from time to time,” he said.
Kimia Farma to Take Over State-owned Hospitals PT Kimia Farma Tbk. plans to take over hospitals run by SOEs and state-owned companies, in a follow-up to State Enterprises Minister Dahlan Iskan`s appeal to the SOEs to focus on their root businesses. “Several SOEs run hospitals, I cannot tell which ones,” the state-owned pharmaceutical company`s president director Syamsul Arifin said at his office here on Tuesday. He admitted that the plan would be realized after the construction of a liver hospital in Jakarta is complete. He said the plan was also aimed at making the
company`s products available to the hospitals. Minister Dahlan Iskan has signaled that SOEs-run hospitals could be fully run by SOEs that focus on hospitals and medication. “However, we still have to find out whether the hospitals are good and how their conditions are. This will be one of the company`s expansion plans,” he said. Syamsul said if the SOEs-run hospitals are located in towns their services will be adjusted to the existing standards, while those in regional services will be made cheaper. “What is important is that we
State Enterprises Minister Dahlan Iskan
Iskan noted that nearly all SOEs have hospitals but they cannot be considered optimal, so an evaluation is needed in regard to their operations.
www.indonesiafinancetoday.com
provide good therapy, medication and services,” he said. Among the hospitals run by SOEs are RS Pertamina by oil and gas company PT Pertamina, RS Pelni by shipping company PT Pelni, RS Gatoel by plantation company PT Perkebunan Nusantara X. There are other hospitals run by fertilizer companies PT Pupuk Sriwijaya, PT Pupuk Kalimantan Timur, and RS Hasan Sadikin in Bandung. Iskan noted that nearly all SOEs have hospitals but they cannot be considered optimal, so an evaluation is needed in regard to their operations.
Garuda Indonesia received 14 new planes in 2011 consisting of two A3330-200s and nine B727-800s Next Generation and three A320s for Citilink. So in 2011 it operates a total of 87 planes with their average age of 6.5 years.
Martabe Gold Mine Set to Start Production PT Agincourt Resources Indonesia plans to start production at the Martabe gold and silver mine in Batang Toru in the district of South Tapanuli, North Sumatra soon, company spokesman said. “Initial production is scheduled to start as of July 2012,” Environment Superintendant Septamto L. Inkiriwang of the company which is a subsidiary of G-Resources Group Ltd. said at North Sumatra Fair here on Sunday. Since 2010 and until now the Asia-Pacific mining company based and registered in Hong Kong, G-Resources Group Ltd, is still finishing the construction, operation and exploration work at the mine. The design and technical work has now 90% finished. If the whole stages of the con-
struction, operation and exploration work is done as planned initial production of the Martabe gold mine is expected to total 2,500 tons of gold and two to 3,000 ounces of silver a year. The Martabe gold mine is located in the mineralization zone of 30 square kilometers in the sixth generation working contract measuring 1,639 square kilometers. “The Martabe gold and silver mine is very prospective as it has the potential to produce for 50 years,” Septamto said. He said the production cost in the Martabe gold mine would be the cheapest in the world as its location is strategic and close to the main infrastructure facilities. The location is not far away from the Trans-Sumatra highway and only around 40 kilometers from Sibol-
ga city which has a port and a 230 megawatt capacity coal-powered electricity plant. The physical construction of the mining project involves around 4,000 workers and 700 of them come from several villages in Batang Toru. He admitted support from the local people was significant for the long-term success of the project. “We have been committed to cooperating with the local people and developing programs that would benefit all stakeholders and contribute to long-term development,” he said. In view of that he said good cooperation and sustainable development had become the philosophical foundation long before the mine starts production.
The President Post
www.thepresidentpost.com
April 2012 B3
Investment Garuda Invests in 11 Airbus Planes www.presidensby.info/Cahyo
The purchase was part of Garuda’s fleet development program to increase capacity and develop new routes, including middle- and long-haul flights.
G
information, and telecommunication transportation between Telkom and Aerowisata through Aerotrans, Tourism and Hospitality of Garuda,” President Director of PT Telkom Rinaldi Firmansyah said about the MoU, Telkom and Garuda Indonesia in Jakarta on Wednesday. Rinaldi said Telkom will develop an in-flight connectivity and a Garuda IT network through a subsidiary of the Garuda Aero System. “By way of the in-flight connectivity, Garuda passengers will be able to access Internet services from inside their plane even during flights. Besides, an agreement has been made on the exchange of a Garuda Frequent Flyer reward system,” he said.
aruda Indonesia signed an agreement with Airbus on Wednesday to purchase 11 A330-300
planes. The signing took place during the visit of British Prime Minister David Cameron at the presidential palace with Garuda Indonesia President Director Emirsyah Satar and Executive Vice President for Airbus Program Tom Williams, witnessed by President Susilo Yudhoyono and PM Cameron. Yudhoyono later said there were five items in the agenda to be discussed to increase cooperation between the two countries. “In the meeting just now we discussed five items, namely cooperation in the fields of trade, investment, education, democracy and inter-faith dialog and climate changes,” he said. He added that trade between the two countries had increased by 10% to $2.8 billion in 2011, from $2.6 billion in 2010. “Britain’s investment in Indonesia is the fifth largest. We have offered cooperation following the country’s efforts to boost growth and open investment opportunities,” he said. PM David Cameron, meanwhile, said Britain has set a target of doubling its trade value within three years and would contribute
The signing took place during the visit of British Prime Minister David Cameron at the presidential palace with Garuda Indonesia President Director Emirsyah Satar and Executive Vice President for Airbus Program Tom Williams, witnessed by President Susilo Yudhoyono and PM Cameron. to the development of micro-small and medium businesses in Indonesia. “We have also invited Indonesian businessmen to increase investment and would provide priority visas for businessman wishing to invest in Britain,” he said. Based on the contract, worth Rp$2.54 billion or $231.1 million each, the 11 Airbus planes will be delivered in stages to strengthen Garuda’s fleet through 2017. The national flag carrier now operates 14 A330 planes consisting of six A330-300 and eight A330200 planes. In a press statement, Emirsyah Satar said the purchase was part of Garuda’s fleet development program to increase capacity and develop new routes, including middle- and long-haul flights.
Tom William, meanwhile, said the purchase agreement was the follow up of the good relations developed by the two parties.
The purchase agreement was the follow up of the good relations developed by the two parties.” Tom Williams Executive Vice President for Airbus Program
Garuda Indonesia to have Wi-Fi facilities
Garuda Indonesia has invested $100,000 to install Wi-fi system. By the end of this year Garuda’s passengers will able to access Internet services within the plain even during flights PT Garuda Indonesia cooperates with PT Telekomunikasi Indonesia (Telkom) to increase the synergy between state owned companies, signed an MoU on corporate services. “The cooperation covers special fares, business cooperation in the use of telecommunication,
In the meantime, Garuda Indonesia President Director Emirsyah Satar said this cooperation will increase the synergy between the two companies and the development of Garuda in information and telecommunication technology. “Telkom is a company in Indonesia with the most complete products and network and the latest technology. Under the MoU, the two state-owned companies are expected to become the best in Indonesia,” he said. He said telecommunication is playing a very important role. The consumers will be able to access the Internet in their planes, the first such facility in Indonesia. “As telecommunication is an inseparable part of the people, Garuda has $100,000 to install an Wi-Fi system in the plane,” he said. It is expected that the program would have already in operation by the end of this year.
PLN’s Investments Down 5.6% in 2012 State-owned electricity company PT PLN plans to cut its investments by some 5.6% to $7.49 billion in 2012, from $7.939 billion in 2011. The company will reduce its investments as it manages to keep transmission costs down by 25.86% to $2.531 billion this year, from $3.414 billion in 2011, PLN President Director Nur Pamudji said at a hearing with the House of Representatives Commission VI at the parliament building here on Monday. However, investments in generators increased by 13.14% to $3,264 million in 2012, compared to $3,264 million in 2011, he said. “PLN`s investment needs are projected to reach $60.5 billion until 2020 or $6.1 billion per year,” he said. The investment will be needed for engineering procurement construction (EPC), excluding ODC (offplot delivery contract), fi-
PLN President Director Nur Pamudji nancing and taxes, he added. PLN`s investment needs, if combined with those of private electricity contractors (IPP), will reach $9.8 billion this year, a 7.93% increase compared to $9.1 billion in 2011. The increase was fueled by a 35.71% increase in the amount of investment in generators to $6,087 billion from $4.4 billion in 2011, Nur said. Both PLN and IPP will need $96.2 billion in investment through 2020, or $9.6 billion per year, he added. PLN has also projected the electricity ratio to reach 75.30% in 2012 and 80% in 2014.
Minister Calls for Hong Kong Entrepreneurs to Invest in RI Public Housing Minister Djan Farids has encouraged Hong Kong investors from the Hong Kong Infrastructure Development and Real Estate sector to invest in Indonesia. “Hong Kong entrepreneurs in the fields of infrastructure and real estate have a lot of experience, therefore, we have encouraged them to invest in the building of apart-
ments in Indonesia,” Djan said in a written statement to The President Post on Monday. According to Djan, investors from Hong Kong have been encouraged to participate in the construction of apartments as well as new cities in Indonesia. He added that the involvement of Hong Kong investors in Indonesia`s real estate sector was expected to assist in the development of the nation`s housing supply.
The President Post
B4 April 2012
www.thepresidentpost.com
Pictorial Events
Grand Lady of Indonesian Journalism Herawati Diah Celebrates 95th Birthday Celebrating the 95th birthday on April 4, Herawati Diah looked radiant as her smile bloomed when receiving best wishes from guests. A blessed woman who pioneered the role of Indonesian women in journalism, she received tributes from government, prominent figures, diplomats, press society on that auspicious day.
H
erawati is a senior journalist and one of the living witnesses of Indonesia’s history. She and her husband, the late BM Diah, were the founders and owners of the newspaper “Merdeka”, which was first published in October 1945 with a personal mission and vision to enrich the intellect of post-Independence Indonesians. She was also one of the founding members of The Indonesian Observer, which was launched on the eve of the Asia-Africa Conference in 1955 in Bandung. The daily was the country’s first English newspaper and for some time the only one until the 1960s. Herawati was the first Indonesian woman to attend university
Herawati was the first Indonesian woman to attend university in the United States. She took a journalism course at Stanford University in California between her principal studies at Barnard College, at the New York-based University of Columbia. She chose sociology as her major at Barnard.
in the United States. She took a journalism course at Stanford University in California between her principal studies at Barnard College, at the New York-based University of Columbia. She chose sociology as her major at Barnard. She inspired Indonesian women to stand before gender discrimination. She became a member of the Board of the National Commission on Violence Against Women, defending thousands of rape victims during the May 1998 riots. She also founded several organizations for Indonesian women, among others, Indonesian Women’s Association (ISWI), Gerakan Pemberdayaan Swara Perempuan, and others.
PHOTOS: The President Post/Heros Barasakti
The President Post
www.thepresidentpost.com
April 2012 B5
Pictorial Events
Margaret River Culinary & Wine Experience The Ritz-Carlton Jakarta, Pacific Place invited two celebrity guest Chefs Dennis Mifsud, Tony Howell, and culinary expert from Indonesia, Petty Elliot, to cook special dishes in Margaret River Culinary & Wine Experience event. Dennis Mifsud is an Australian national chef that has a big passion for travel as well as food. His passion has brought him work throughout South East Asia, Europe and Australia, and discovered a completely new cuisine and culture that would influence his cooking style.
Tony Howell is Resident Executive Chef from Cape Lodge and a former MasterChef Australia finalist. Tony has been promoting Australian produce and enticing food and wine lovers to visit Margaret River. His appearance on TV series Australia MasterChef was intended to boost up the local hospitality industry. Complementing each dish, the owners and the winemakers from renowned wineries in Margaret River such as Ashbrook, Edwards, Moss Wood and Voyager Estate featured the best picks from their wineries.
Ozmine 2012 Ozmine 2012 is the sixth yearly Australian mining exhibition and conference in ASEAN and was recently hosted in Jakarta. Organized by Austrade, the Ozmine conference brings together key Indonesian, Australian and ASEAN industry and government players to identify and discuss major trends, opportunities and challenges in the mining industry. More than 100 Australian organization from the mining industry participated in the exhibition, which brought devices, technology, services, and consumable products from the mining sector. PHOTOS: The President Post/Heros Barasakti
Tidar Heritage Foundation Gathering PHOTOS: The President Post/Heros Barasakti
Tidar Heritage Foundation in cooperation with PT TWC Borobudur, Prambanan and Ratu Boko held a limited meeting and gathering to support the event Borobudur International Hash House Harriers 2012, which will be held on May 25 to 27 in Magelang, Central Java. Minister of Tourism and Creative Industry Mari Elka Pangestu fully supports the Borobudur Interhash 2012 since it will boost the number of foreign and domestic tourists to Central Java and will give positive impact on the creative industry’s development.
President University 7th Graduation Ceremony PHOTOS: The President Post/Heros Barasakti
President University held it 7th graduation ceremony for 300 graduates from the faculties of economics, engineering, communications & multimedia, business and international relations. The ceremony was attended by Minister of Education and Culture Muhammad Nuh, ambassadors, representatives of regional heads, the chairman of PresUniv, Prof. Juwono Sudarsono, and other public figures.
Jababeka Residence Exhibition PT. Jababeka Tbk held an exhibition for its residential sector at President Lounge, Menara Batavia. Jababeka residential provides complete facilities such as hospital, university, mall, golf course, sports center, etc. There was a seminar by motivator Bong Chandra on the secret of property investment attended by more than 100 guests. PHOTOS: Jababeka
The President Post
B6 April 2012
www.thepresidentpost.com
Breakfast Dialogue Da’I Bachtiar: Indonesia Still Unable to Prevent Terrorism Movement PHOTOS: The President Post/Rians Riuco
“Don’t let Indonesia be considered as the source of terrorists. Though we are able to catch terrorists, we’re still unable to reduce the number of potential terrorists. Terrorism cannot be eradicated with the death penalty only, because we are talking about the ideology of martyrs. It needs participation of the environment, family, and society to prevent the growth of terrorism.”
By Jeannifer Filly Sumayku Breakfast Dialogue held by The President Post and Financial Club Jakarta featured former Chief of the Indonesian National Police Da’I Bachtiar as guest speaker. On the occasion, Bachtiar shared his deep knowledge and experiences on countering terrorism. He received his professorship on Security and Counter-Terrorism from Edith Cowan Univeristy, Perth, Western Australia. He said that terrorism in Indonesia will not come to an end if the extreme philosophy of a religion is still maintained by its leaders and followers. These radical groups started their movement by recruiting people to jihad. He stated, “Don’t let Indonesia be considered as the source of terrorists. Though we are able to catch terrorists, we’re still unable to reduce the number of potential terrorists. Terrorism cannot be eradicated with the death penalty only, because we are talk-
ing about the ideology of martyrs. It needs participation of the environment, family, and society to prevent the growth of terrorism.” “In countering terrorism, I used the principle law of Indonesia and Crime Scientific Investigation, it won’t violate human rights and it has to be approved by the public,” he added. He continued, “The target of terrorism varies and is not only focused on one goal. If the terrorists are hostile to the police, then their targets are mostly police stations. If the enemy is the west, then the targets are western facilities.” Da’I Bachtiar received several honors and awards on his outstanding achievements, among others, Tan Sri (TS) Knight of Order from The Kingdom of Malaysia, Honorary Officer of the Order of Australia, and other honors from the Indonesian government. He also became the Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to Malaysia.
ADVANCED LEADERSHIP PROGRAM 2012 Leading for Competitive Growth
By the ALP-2012 Module-1 we challenge you to enhance your leadership effectiveness to come across the real business environment in the new millennium and leave behind your leadership models that might just work in the past… Dr. Tanri Abeng, MBA. Chairman, ECGL
TRANSFORMING VISION INTO ACTION: Value, Strategy, and Integrity
(Dr. Tanri Abeng, et.al) 2nd – 4th May, 2012, ASEAN Room, The Sultan Hotel, Jakarta A vision for an organization is not enough for transformational leaders copying with ever stringent global competition, new market constraints, economic downturn and any environmental shift outside the existing business models. This module elaborates the needs for the leaders to actively participate into actions and creatively direct their people to make the vision a reality.
For further information and registration, please contact: ECGL, Menara Karya, 27th Floor Jl. HR. Rasuna Said, Blok X-5 Kav.1-2 Jakarta 12950 Tel. (021) 576 2834 / 576 1168 Fax. (021) 576 2132 email: info@ecgl.co.id with Meila or Tien
Prof. Dr. Steef vd Velde Dean, RSM Erasmus Univ.
Check the list below for other ALP-2012 modules and secure your seat asap ... Leading Change: Wisdom and Courage
Prof. Dr. James O’Toole (University of Southern California)
May 23rd – 25th Bali
Prof. Dr. Peter Verhezen (University of Melbourne)
June 6th – 8th Jakarta
Dr. John P. Miller (Louis Allen Worldwide, USA)
June 27th – 29th Jakarta
Prof. Dr. Stefan Peij (Governance University, the Netherlands)
July 11th – 13th Bali
Ian Buchanan, MA., MBA. (Australian Pacific Economic Cooperation Council)
September 5th – 7th Jakarta
Leadership Excellence for High Performance
Patrick Lybaert, MSc. (RSM, Erasmus University)
September 26th – 28th Bali
Customer Leadership: Creating a market driven organization
Dr. Barbara Banda (Ashridge Business School, London)
October 17th – 19th Jakarta
Leading Transformation in the Digital Economy
Prof. Dr. Eric van Heck (RSM, Erasmus University)
November 7th – 9th Jakarta
Operational Excellence for Business Transformation
Prof. Dr. Steef van De Velde (RSM, Erasmus University)
November 28th – 30th Bali
Prof. Dr. Martijn Rademakers (Center for Strategy and Leadership, the Netherlands)
December 19th – 21st Jakarta
Integrated Risk Management: The Foundation of Doing Business Managing Execution and Engagement: The Essence of Global Leadership Good Governance for Corporate Transformation
Transformational Strategy for Global Competition
Transformational Management for Sustainable Competitive Growth
The President Post
www.thepresidentpost.com
April 2012 B7
Health 10 Surprising Benefits of
Quitting Smoking
www.uquitsmoking.net
About two months ago, I quit smoking. At the time there were many reasons influencing my decision to finally choose a smoke-free lifestyle. I was worried about my health. I had high blood pressure. My doctor and everyone I knew was encouraging me to kick the habit. My family history is one of lung cancer and diabetes. The list goes on and on.
N
ow that I’ve been without tobacco for the past couple months (63 days, to be exact), I’ve noticed some changes in the way I’m living. All are positive and are in direct relation to my body’s depletion of those nasty chemicals I’ve called friends for the last 12 years. So I thought I would list those changes and explain how I have been affected by each. Though my list is restricted to 10, it is by no means an exhaustive one.
1
No more chronic cough: All smokers know what “smoker’s cough” is. I didn’t realize how annoying this was until I stopped coughing all the time. After about a week being smoke-free, I noticed I didn’t have to clear my throat every few minutes. I recall plenty of times when I was at a function or meeting and needed to cough so badly, but couldn’t because I knew it would be rude and interrupting to those around me. It’s like an insect hovering in your throat – not touching, just drying everything between your tongue and your stomach – and you can’t do a darn thing about it.
2
The smell: I didn’t know I smelled so badly until I was around other smokers. Their
Non-smoking or non-smoking?: I think the airline industry coined the phrase: “Smoking, or non-smoking?” And, I think it was the first group to eliminate cigarette smoking from a certain area (the airplane). Today, it’s almost preposterous to think we once smoked during an international flight on a 747! “Non-smoking or non-smoking?” seems to be the rhetorical, unasked question wherever you go these days. It’s understood. There will be no smoking here, or here, or there, or over there, or in there, or... well, you get the point.
clothes, home, car, even their pets reek! About a week after I smoked my last cancer stick, my daughter and her boyfriend, a smoker, dropped by for a visit. Their dog always peels for the door and makes it into the house first. Yeah, I actually smelled the odor of cigarettes coming from the dog.
3
No more cleaning butts: I swear that cigarette butts would multiply when I wasn’t looking. I once placed a butt can out back on the patio and initially used it as intended. Pretty soon, I was too lazy to walk down the steps to the can and just started flipping cigarette butts out into the yard, in the area of the butt can (as if I were shooting a jump shot). I rarely scored. Eventually, they were lying everywhere. So much that I would just wait until the weekends to “clean” them with the leaf blower. Nasty, nasty, nasty!
4
It’s just an extra $200 per month: Really, the extra money wasn’t even noticed, as I can easily spend that on a night grilling on the patio (I love king crab and filet mignon, and only the finest Belgium beer!) So I really didn’t look at this as a true benefit of not smoking. But, with the price of cigarettes reaching about $6 a pack in my area – and up to $11 in other areas of the nation – I discovered this adds up. And,
it was clear the price of tobacco was just going to continue to rise. So, I got out my calculator. $6 a day multiplied by 365 days in the year. Comes out to $2,190. Looking at this long term, that’s about $122,000 over the next 56 years (when I turn 100). Assuming cigarettes continue to increase in price at the present rate, then it’s easy to see that number growing to half-million dollars. Invested wisely, I’m sure I can leave someone a big, fat payday!
5
Lost productivity: Sure, we all need a break or two during the work day. But I realized I was taking about 20 of these 5-minute breaks. In all honesty, each was probably about 10 minutes. About two-thirds of my breaks were when I was at work (I have
The Benefits of B-Vitamins Scientists found that a protein called RGS4 is required for dopamine to regulate brain circuits during learning. But when dopamine levels drop dramatically, as in Parkinson`s, RGS4 becomes overactive and disrupts these circuits -- thereby leading to Parkinson`s symptoms. B-vitamins play an important role in maintaining optimal health. There are eight distinct and essential vitamins in the B-vitamins group, from vitamin B1 through to vitamin B7, B9 (also known as Folic Acid) and B12.
7
as absorption through the gut decreases with age, while vegans or anybody who doesn’t eat dairy products, meat, fish or eggs – all natural sources of vitamin B12 - should be aware of the risks too.
B-vitamins are water B-VITAMIN DEFICIENsoluble, which means CIES what the body doesn’t People with B-vitause, is passed in our urine. min deficiencies could Only small amounts can suffer unexplained be stored. As a result, our mental and physical reserves of B-vitamins exhaustion. Some of can quickly become dethe other common pleted. This could lead to symptoms of B-vitamin www.weightlossforall.com a number of health comdeficiency include conplications, ranging from fusion, mild depresminor to severe, such as weight loss, sore throats, insion, aching limbs and heart palpitations. somnia, and high blood pressure. Therefore, keeping “A low level of B-vitamins can lead to a person levels topped up is important. feeling low in energy, lethargic and to have poor memory,” says Priya. “A low level of vitamin B12 is WHY ARE B-VITAMINS IMPORTANT? called pernicious anaemia where the body produces The key functions of B-vitamins include aiding cell larger than normal red blood cells that cannot funcgrowth and division, supporting the metabolism, imtion properly.” mune and nervous systems, and maintaining healthy skin, hair and muscle tone. Long term deficiency of B-vitamins could lead to irreversible and fatal complications. Much of this “The B-vitamins are a group of vitamins that have centres on the role that B-vitamins play in controlling a range of functions including helping release energy levels of the amino acid homocysteine in the blood. from food, thus providing the body with the energy High levels of homocysteine could damage blood it needs to function, and helping make healthy red vessels and lead to health complications such as blood cells,” explains Priya Tew, a registered dietician. heart disease. “B-vitamins are also needed for healthy nervous system and brain function.” SOURCES OF B-VITAMINS B-vitamins can be found in many of the foods we WHO NEEDS B-VITAMINS? eat in our daily diet, including whole grains, potaEverybody should ensure they have sufficient toes and bananas. Lentils are also a good source of levels of B-vitamins, but for some groups this is even B-vitamins, as are other whole unprocessed foods. more important. Women are advised to increase B-vitamins can also be found in meat such as turkey their intake of vitamin B9 (Folic Acid) during pregnanand tuna. Supplements which contain a balance cy as deficiencies could lead to birth defects. The elof all eight of the B-vitamins are known as Vitaminderly are particularly at risk of vitamin B12 deficiency, BComplex.
a home-based web development business). So, that’s more than 2 hours of breaking as opposed to working. How in the world was I getting my work done? I have since realized that I wasn’t.
6
Food tastes much better: I don’t know if it has something to do with a cleaner mouth,
but food simply tastes better. I also find that I use less salt. I’ve heard on several occasions that if one quits smoking one gains weight, but I would warn people from using the weight-gain excuse as a viable argument when attempting to become smoke-free. Trading one bad habit for another isn’t the way to go.
Unlike the Golden era of the 1920s and 1930s, when smoking was an upper-class hobby, a smoker’s world is an unfriendly one today.Since the airlines quit asking that redundant question, smoking has been eliminated from virtually all public places. Restaurants, high-school football games, town parks, even bars and drinking establishments have become smoke-free. For smokers, drinking a beer without a cigarette is like playing pool without a beer! Whether smokers realize it or not, the very fact that one uses tobacco limits them in myriad ways – especially socially. I don’t have to worry about that anymore.
8
Dry, sticky contact lenses: As a wearer of these mira-
cle discs of ocular health, I know what smoking does to your contact lenses. Smoke makes them dry. They become cloudy and you’re constantly rubbing your eyes. Eventually, your lenses get to the point where you must get them out. Fortunately, I wear disposable contact lenses. All I had to do was pop in a new set. But, at a couple dollars per lens, this was costing me. How to solve this annoying problem? Quit smoking!
9
Physical appearance: In the few months I’ve not smoked, I can tell my overall physical appearance has improved. My skin isn’t dry and wrinkly. My bit of gray hair is actually going brown. My self-confidence in speaking directly to someone isn’t hindered by my desire to turn at an angle because of smoker’s breath.
10
Bye, bye yellow teeth: No matter how hard I brushed or swished fluoride, I couldn’t seem to keep perfectly white teeth. “It’s because you smoke,” my dentist proclaimed. “And, unless you do something about that, your dental health will continue to deteriorate, thus affecting your overall health.” Bad teeth can lead to serious health affects throughout your body. Yesterday I had a cleaning at the dentist, and plan to keep my teeth white and healthy from now on.
The President Post
B8 April 2012
www.thepresidentpost.com
Living
SIZE MATTERS: Why Tablets Are Shrinking, Growing (CNN) – When it comes to tablet computers, size matters – a lot. But these devices are definitely not one-sizefits-all. And like Alice in Wonderland, the “right size” for tablets keeps shifting.
T
hat’s making the tablet market curiouser and curiouser. Many iPad users treasure the Apple gadget’s approximately 10x7-inch expanse, and I’ve seen some bristle at the suggestion that this size might be unwieldy. Meanwhile, users of the Kindle Fire or Nook Color often prize having a tablet that slips easily into a pocket or purse for half the price (or less) of an iPad. There is a large and fast-growing consumer demand for tablets across a wide range of sizes and price points. Nook Tablet: No match for iPad or Kindle? In February, analysts at iSuppli estimated that 3.9 million Kindle Fire units were sold in the last quarter of 2011. That’s only about a quarter of the number of iPads estimated as being sold during that same quarter, but it’s still pretty respectable for a new device. The diversifying tablet market also includes the oddball Sam-
Kindle Fire
sung Galaxy Note – a moderately pricey, stylus-bearing smartphone/tablet hybrid. Initially greeted with skepticism, this device ended up selling five million units in its first six months. And soon it might come with Ice Cream Sandwich pre-installed. Could the iPad shrink? Rumors have long been swirling that Apple might be preparing to launch an “iPad mini” model that’s closer in size to the Kindle Fire. CNET Asia reported this last week: “According to Japanese Apple news site Macotakara, Apple’s working with LCD suppliers to get a 5-inch panel with a pixel densi-
ty high enough to be able to call it a Retina Display. That’s according to ‘a reliable Chinese source,’ the site said. ...That smaller device would arrive sometime next year, Macotakara suggested.” Of course, before we learn the truth of the elusive mythical iPad mini, the next version of the Kindle Fire, which could be released as soon as May or June, might feature a model with a larger screen as well as upgraded specifications. This week, Fire2.net claimed that “newest reports from Taiwan suggest... that there probably won’t be a 10-inch Kindle Fire 2, but two different 8.9-inch tablets and a smaller 7-inch model.”
Celebrity Chefs Create
Mile-high Menus British celebrity chef Heston Blumenthal has long been on a mission to stir his countrymen’s culinary senses but the gastronomic pioneer has now turned his attentions to an altogether more complex problem -- rustling up gourmet airline food. Blumenthal was in London this week to launch British Airways’ new in-flight Olympic menu, which he has helped create alongside Michelin star chef Simon Hulstone. The luxury fare -- which includes dishes such as “Rillette of mackerel dressed on a pickled cucumber carpaccio with sour dough croutes” -- will be served on all BA flights for the duration of this summer’s Olympic Games. The collaboration marks the latest link-up between commercial aviation and celebrity chefs as airlines look to improve the reputation of in-flight dining. “However hard airlines try, the reputation of food on board planes is not very high,” says Peter Jones, former chair of the International Travel Catering Association. Clearly, celebrity chefs are hugely successful and airlines are trying to overcome this stereotypical view of their food being unpalatable or stodgy,” adds Jones, who is now professor in hospitality management at the University of Surrey in the UK. Other major flight operators such as American Airlines, Delta Air Lines, Qantas, and United Airlines have also sought out prominent chefs in recent years as they attempt create a finedining experience in the sky. Gordon Ramsay has previously advised Singapore Airlines on its premium in-flight menus, which include offerings such as a pan-seared salmon escalopes, and tender rib eye steaks in red wine sauce. And 26-star Michelin
chef Joel Robuchon is the gastronomic brains behind Air France’s carte de jour for business-class passengers, with dishes that have included Basque shrimp and turmeric-scented pasta with lemongrass. According to Jones, however, creating the perfect gourmet airline meal requires a scientific awareness of how the human body operates at high altitude, as well as a keen culinary knowledge. “Eating on a plane is not the same as eating on the ground,” says Jones. “Humidity is very dry (and) there is very little water in the atmosphere, which affects our taste buds and sense of smell.”
Airlines select products to go on their planes that are consistent with their brand image and the celebrity chef is another factor that makes up a portfolio of an airline’s brands.” Jones believes that by employing highly skilled chefs who understand this there is more chance of airlines getting their recipes right -- not to mention the positive impact it can have on perceptions of their brand. “Airlines select products to go on their planes that are consistent with their brand image and the celebrity chef is another factor that makes up a portfolio of an airline’s brands,” says Jones. “Their primary function may be to create new and interesting inflight cuisine but it also makes airlines seem contemporary and in tune with the demands of modern customers,” he adds. The benefits brought by this brand synergy are also recognized by Marco ‘t Hart, founder and editor of the Netherlands based in-flight meal monitoring website airlinemeals.net.
“It contributes to the ‘we care for you’ and ‘we-offer-great-service’ feeling some airlines are trying to create,” says ‘t Hart. He is quick to add, however, that the food created by bigname chefs is often exclusively reserved for business and firstclass passengers. “When flying economy, you’ll still be ‘stuck’ with the ‘chicken or pasta’ question -- if you are lucky enough to get a meal,” says ‘t Hart, whose website has analyzed over 20,000 meals from various airlines around the world. “On shorter flights the meals have been brought down to a snack, pizza roll or a simple sandwich. There are (also) the low cost carriers who offer buy-onboard meals,” he adds. For those traveling first class, however, t’ Hart believes the quality of a meal designed by well-known chefs is a vast improvement on much of what has hitherto been available. He cites his own experience flying with airBaltic business class -- which has introduced the Slow-Food principles of Latvian chef Martins Ritins into airline food -- as a specific example of the quality of airline dining experience that can be achieved. Some airlines, including Turkish Airlines and Etihad, are going one step further and bringing chefs on board to cook and prepare meals whilst in flight, he adds. But according to Jones it could be a while before any celebrity chefs are spotted cooking up a storm in the cramped quarters of an airplane galley. “I genuinely don’t see that happening except as a publicity stunt,” he says. He adds that the technology on a plane is limited and the safety considerations of cooking whilst in the air means that those charged with preparing food on board will be restricted in what they are able to create.
Nook Tablet
Yes, I know, these are all just rumors, based on information allegedly leaked from Apple’s and Amazon’s supply chains. But when it comes to upcoming tablet models from highly secretive and competitive electronics giants, that’s all we’ve got to go on. One thing is clear: the Kindle Fire and Samsung Galaxy Note are runaway market success sto-
Samsung Galaxy Note
ries, despite their smaller screens. Perhaps even because they’re smaller. Many consumers clearly want and will use smaller tablets – both cheaper, simpler models and costlier, more fully featured ones. Certainly, Apple has noticed this development even if, as usual, they won’t talk about it. So for this reason, I wouldn’t be surprised to
IPad
see Apple eventually launch an iPad mini. Maybe not this year, but perhaps some time in 2013. However, it might not necessarily cost much less. Apple might decide to take the “small is beautiful” approach and market an iPad mini as providing extra, or at least different, value – not as a compromise. That might be totally appropri-
ate, since the perfect size is a matter of preference. As Alice told the Caterpillar: “I should like to be a little larger, sir, if you wouldn’t mind,” said Alice. “Three inches is such a wretched height to be.” “It is a very good height indeed!” said the Caterpillar angrily, rearing itself upright as it spoke (it was exactly three inches high).”