The President Post 38th Edition by The President Post

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November 2012 No. 38 www.thepresidentpost.com

EDUCATION

PROFILE

PROPERTY

Gerakan Indonesia Berkibar has four programs covering boosting teacher professionalism; educational leadership and school management; school governance program; and other advanced program. – Page A8

Suzuki develops “value-packed products” for the new generation and changeable lifestyles, constantly creating new technologies and applying them to the products with affluent imagination. – Page B4

A well-known property company from Dubai, Damac, plans to invest in Indonesia specifically in Special Economic Zone of tourism sector Tanjung Lesung. – Page C6

Gerakan Indonesia Berkibar to Boost Quality of Indonesian Education

Suzuki: Providing Value-packed Products

Dubai Investor: I'm Comfortable when I Come to Indonesia Suzuki Regina

Inequality Threatens Stability Leaders of the World Bank warned that the wide rich-poor divide in America, China and several Asian countries complicate global economic recovery because finances in those countries are still concentrated in the middle-class and have not benefitted the manufacturing sector.

By Juwono Sudarsono*

he re-election of US President Barack Obama is being watched closely by the world. Europe sees an important role of America as the continent embarks on economic and financial recovery. African leaders hope Obama will be more concerned with the region, East Asia and Latin America. As the world's largest economy (GDP: $16 trillion), the weight and role of America in official multilateral and private arenas remain strong. The leadership transition of the People’s Republic of China (PRC) signaled that the country, as the second largest econo-

my (GDP: $ 7.5 trillion), wishes to maintain its strategic economic partnership with the US. The slow economic recovery of the US and China has an impact on the growth rate of Northeast and Southeast Asian countries. Yet the US and PRC are both facing domestic problems that are far more complex, affecting in no small degree the US’ economic recovery, the economic growth of the PRC as well as Southeast Asia’s economic sustainability. The inequality gap in the US is due to the crisis that has been ongoing since September 2008, and stems from 10 years of overspending during the George W. Bush era. The US’s current economic mess is the result of foul play in bond tradings, bank loans, the money market and the housing sector as well as "toxic shares" worth $500 billion annually, thanks to the dubious acts of brokers in the American financial markets, all of which have undermined the competitiveness of America’s manufacturing sector.

One percent of the American population controls nearly 60% of the country’s financial assets, while 90% of Americans do not have adequate savings. Grand theft and and bank frauds by the leaders of 13 banks (six of which are members of the financial industry on Wall Street) have impoversihed hundreds of thousands of account holders and banks around the world, including a number of state and private banks in Southeast Asia. The economic and financial crisis that is felt in Asian bourses has also hit the stock and capital markets in Jakarta, Kuala Lumpur, Singapore, South Korea and Taiwan. The manufacturing industry in Northeast Asia is suffering as a result of the economic slowdown in the US and Europe. The American and European crises ultimately slowed down the world economy, although some markets in East Asian countries have been galvanized to maintain a growth of above 5% per year. The leadership change in the PRC and developments in the US are important for Indonesia to watch, as the symptoms of financial-economic inequality in the two countries are also evident in the disparity in the country’s monetary and bank sectors. About 70% of Indonesia’s financial assets are controlled by a small number of the financial

services industry’s brokers (8%), while the opposite is seen in the the real sector. Corruption within the political elite in the US’s and the PRC’s financial and banking sectors also takes place in Southeast Asia, including Indonesia. The gap between the lowest income and the highest income has widened sharply, from 120 in 2004 to 2,500 times in 2010. Innovations in information technology and financial management have engendered a sharp distinction between the incomes of professional workers (finance, insurance, services, high- technology, and health) and those of manual labor. Leaders of the World Bank warned that the wide rich-poor divide in America, China and several Asian countries complicate global economic recovery because finances in those countries are still concentrated in the middle-class and have not benefitted the manufacturing sector. Thanks to technology, a variety of new financial and banking instruments have exacerbated inequality in the real sector in the US, China, Europe, South Africa and Southeast Asia. The most striking form of inequality is seen in the services sector. For every professional person in this sector, 120 to 250 people are not part of the social security system. The labor unrest that has

occurred in the last four years represents a heavy challenge for ministries responsible for social affairs, labor, health and even state-owned companies. The American working class who live on $45-50,000 a year is losing even more ground to those whose income is above $250,000. In the beginning of 2013, President Obama must find a way for American taxpayers with income of over $250,000 to bear more tax than those earning less than that amount. The "fiscal gap" caused by greed and economic mismanagement during the 2000-2008 period and the Senate-House of Representatives financial committees collusion has compounded the already heavy burden of President Obama, who is seeking to build "a consensus" to overcome the government’s budget deficit. In 2009, when President Obama reminded the rich on Wall Street that a social revolution will occur if the imbalance is not addressed, Republicans accused him of being the instigator of "class warfare." Meanwhile, before the leaders meeting of the Chinese Communist Party on November 2012, debates raged among party cadres angry on the greed of the party’s elite during 2002-2012. Intra- and inter-elite collusion and corruption must be addressed to prevent the gap between the

rich and the poor in large cities and rural areas and among cities and regions from leading to "social contradictions" that can threaten national stability. We in Indonesia also should be able to overcome the financial gap of the rich and the poor in cities, regions and between cities across the region. Our task is to make 60 million middleclass professionals in banking, insurance, property, telecoms, oil and gas sectors remain concerned with the bottom layer of our society, such as labors, peasants, and young freelancers who are not part of the nation’s social network. Public-private partnerships to develop cross-subsidy programs in favor of labors and workers in pockets of poverty should be in place within the next 3-5 years. Social benefit costs are indeed high, but the social and political costs will be even larger and more dangerous in the absence of public-private partnerships. In the US some public health programs have been slashed in the quest to balance the budget. In the PRC social benefit programs have been increased in areas that are prone to unrest, especially where similar and rivalling plants are in operation. We too need to be more vigilant in anticipating socio-economic stagnation that at times occurs in the form of clashes between

We in Indonesia also should be able to overcome the financial gap of the rich and the poor in cities, regions and between cities across the region. Our task is to make 60 million middleclass professionals in banking, insurance, property, telecoms, oil and gas sectors remain concerned with the bottom layer of our society, such as labors, peasants, and young freelancers who are not part of the nation’s social network. citizens. Globalization is always a double-edged sword: it benefits the few who have skills but harm a large number who do not. Indeed, the US, the PRC and Indonesia face common complex and alarming problems. Board of Trustees of President University, Cikarang

Top CEO Backs Jakarta Minimum Wage Increase www.viva.co.id

A prominent Jakarta-based CEO has thrown his weight behind Jakarta Vice Governor Basuki Purnama's promise to increase the city’s minimum wage. “I support Vice Governor Basuki's idea. Bear in mind that in 1997, before the monetary crisis, the minimum wage was Rp 600,000 or $280 when the American dollar was worth Rp 2,300,” says SD Darmono, the president director of listed PT Jababeka, which owns and manages Southeast Asia’s largest industrial estate in Bekasi, south of Jakarta. “We can afford to pay higher wages as the country is back on track, our bourse’s composite index has risen by 400% in the last seven years, and our foreign exchange reserves stand at an alltime record of over $100 billion,” he added. Jakarta Deputy Governor Basuki Tjahaja Purnama last month told hundreds of protest-

The new figure will not reach that high. That’s too much, as companies must pay tax.” Jakarta Vice Governor Basuki Purnama

ing laborers in front of City Hall that Jakarta’s minimum wage will be increased in line with the rising cost of living. The laborers had demanded the city administration increase next year’s minimum wage from Rp 1.5 million (about $160) per month to nearly Rp 2.8 million a month. “Many businessmen own private jets and Roll-Royces. But at the same time the minimum wage stands at about $160. The widening disparity between the rich and the poor is not healthy for business. A rapid adjustment is required to stop workers from holding strikes,” says Darmono, in an apparent reference to two

large-scale workers demonstrations and strikes in Jakarta and other parts of the country in the past ten months. “If minimum wage can go back to $300 in two years’ time, Indonesians’ purchasing power will increase significantly. This in turn fuels our economy and will make the country even more attractive to investors,” added Darmono. “Basuki’s promise merits support from the business community if they really want to see Indonesia have a stronger economy. As Jakarta is the barometer of the country, it is very important that we set an example in treating workers in a just manner.” While Basuki promises to increase the minimum wage, he also finds that the Rp 2.8 million per month proposed by the laborers was too high. “The new figure will not reach that high. That’s too much, as companies must pay tax,” he said.

Jakarta Deputy Governor Basuki Tjahaja Purnama last month told hundreds of protesting laborers in front of City Hall that Jakarta’s minimum wage will be increased in line with the rising cost of living.

November 2012

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Opinion

The Positive Correlation Between Graft and Workers’ Misery High economic costs which stemmed from corruption usually force businessmen to cut costs from the most flexible production cost, which in this case workers’ wages. Prices of raw materials are already fixed, tax payments are also fixed and so is transportation cost. Therefore this is where the positive correlation between corruption and workers’ misery come in.

By Dr. Muchtar Pakpahan, SH, MA

often said that rampant corruption would make workers suffer. Why? Because high economic costs which stemmed from corruption usually force businessmen to cut costs from the most flexible production cost, which in this case workers’ wages. Prices of raw materials are already fixed, tax payments are also fixed and so is transportation cost. Therefore this is where the positive correlation between corruption and workers’ misery come in. In his courtroom defense in 1937 entitled "Indonesia is suing", Soekarno said “my intention to get Indonesia independent is because I wanted to build a welfare state which runs based on social democracy such as in the Country of the Lord.” When Soekarno became proclamator, he and his colleagues drafted the 1945 Constitution and included the welfare state idea in the opening and body text of the 1945 Constitution. I will begin with an important statement in the Opening of the 1945 Constitution. The fourth paragraph, ”....... in order to form a government of Indonesia and the entire homeland of Indonesia, and in order to advance general prosperity, to develop the nation’s intellectual life, and to contribute to the implementation of an everlasting world order based on…” Now I would like to explain more about the open-

ing text, especially about the paragraph that was made as the basis to build a welfare state, the paragraph on general prosperity and to develop the nation’s intellectual life, as stipulated in articles in the 1945 Constitution and an understanding about the International Labour Organization. First Article 31: every citizen is entitled to a 9-year education and the state has the obligation to cover the expenses. Article 27: every citizen is entitled to get a job and decent life. Article 34: the state takes care of the poor and neglected children. Article 34 jo 28: the state advances the public’s health.

out that corruption in the construction and security sectors reached 30-40%, non-voting stocks 10-50%. Commission service and security industry 10-20%, non-voting stocks 10-30%. Export/import commission/security 20-30%, and non-voting stocks 0-20%, while labor cost was only set at 8%. The officials who received/enjoyed corruption money consider that as normal.

But reality showed that the welfare state idea had never materialized. Why? I once read in the media that the illiteracy rate in people aged more than 45 years old reached 9.7 million, anf real unemployment rate is 9 million. There are so many beggars at every intersection. Medical expenses are very expensive and people die because they couldn’t afford medical treatment. The government couldn’t cover all that because it said it didn’t have money.

When I served as Governing Body ILO 19992005 and Vice President of World Confederation of Labour, I had the opportunity to visit all prosperous countries. In each of those countries I found three things, they were welfare states; their governments adopted the principle of good governance; and they had strong civil society which was marked by strong labor unions.

The next question is, why isn’t there any money when Indonesia’s natural resources makes up 65% of the natural resources found in Asia-Pacific (APEC, Kyoto 1995). The answer is because corruption is rampant in all public service sectors. Indonesia is one of the most corrupt countries in the world, ranking 182, and tops the rank both in Asia Pacific and Asia, followed by Cambodia. In 1994 I found

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The corruption that I mentioned above created social injustice and social gaps. 70% of national assets lie in the hands of 200 tycoons.

In brief, we want to build a prosperous society, at least in line with the articles I mentioned earlier in which all citizens could enjoy education of at least until junior high school (in other parts of the world it’s senior high school minimum); Everyone must be employed, the state will pay for living expenses of those who are jobless; no beggars on the sides of the streets because the state takes care of them, educate them and empower them to become normal people; Anyone who is sick can immediately seek

treatment at a hospital because the government provides health social insurance; the state guarantees that all citizens live in decent homes, no one should be homeless; everybody has pension funds, that when they reach 60 years old they can quit working and enjoy their pension benefits; and everyone is free to choose any religion and the government guarantees that they can practice their religions and beliefs. I can say that the Soeharto, Habibie, Gusdur, Megawati and SBY administrations have failed to create the welfare state because our government and bureaucracy are corrupt and we’ve even been labeled as the most corrupt country in the world. Corruption is rampant because the civil industry remains weak. The Soeharto administration created a single labor union called All Indonesia Labor Union (SPSI) and turned it into a political tool to support the government’s policies. When I initiated establishing the Indonesian Prosperous Labor Union (SBSI) with KH. Abdurrachman Wahid, Sabam Sirait and Suko Waluyo as an alternative civil industry on 25 April 1992, the government immediately turned SBSI into its enemy. The Soeharto administration even labeled SBSI as illegal, communist, and underground organization and jailed me twice for it. A labor union as a civil strength is crucial because industry players are suffering due to bad governance, and corrupt government. Workers badly need a fair

CEO & EDITOR IN CHIEF: Rachmat Wirasena Suryo I CONTRIBUTORS: Atmono Suryo; Jeannifer Filly Sumayku; Bambang Sulistomo; Paulus Khierawan; Muchtar Pakpahan; Hendra Manurung; Iqbal Alaik; Public Private Partnerships Indonesia; Majalah RESPECTS I REPORTER & PHOTOGRAPHER: Rians Rivco; Heros Barasakti I CIRCULATION: Seny Rosgandasari I LAYOUT & DESIGN: Mohamad Akmal I HEAD OF SALES & MARKETING: Donny Martin

industrial profit sharing. And this can only be possible if the government is free from corruption like countries with the most prosperous workers in the world such as Finland, Sweden, Norway, Denmark, New Zealand, Singapore, Switzerland, Japan and Canada. Corruption not only brings misery to workers but also to farmers and fishermen. Farmers find it difficult to buy fertilizers at an affordable price and they also don’t get any protection to sell their crops. Fishermen don’t get any protection at sea from foreign fishermen who steal our fish and they don’t get any guarantee for fuel, net and ice supplies. Indonesian workers are among those who receive the lowest wages in the world. Our farmers and fishermen are also among the poorest in the world. Indonesia is a country controlled by neoliberals. Fighting poverty, corruption can only be done conceptually, well-planned, programmed and sustainably.

Labor unions must take part in the movement to stop corruption. Labor unions should no longer only make their move when it concerns industrial matters. It’s true that unfair industrial relationship is the source of the workers’ misery, but rampant corruption is also the source of workers’ misery. Labor unions which are now grouped under MPBI (Indonesian Workers Council) should make anti corruption drive as one of their main tasks.

PUBLISHED BY: PT Kawasan Industri Jababeka Menara Batavia 25th Floor, Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Phone: (021) 572 7337 I Fax: (021) 572 7338 I Email: ceo@thepresidentpost.com www.thepresidentpost.com

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November 2012

Opinion

"A chain is only as strong as its weakest link" Indonesia offers tourists the an authentic leisure experience. It has over 17,000 islands to choose from! However the country must develop its tourism in sustainable, balanced and intelligent ways.

By Martin J. Craigs

ood news and bad news, but I’ll start first with the latter: I arrived in Bali on a Friday last month to attend a weekend conference of University of Southern California alumni. I met business leaders such as the bosses of Garuda Indonesia, Korean Air and Bank of China Aviation. I also met Minister of Tourism and Creative Economy Mari Pangestu and over 100 Indonesian Tourism leaders and investors in Jakarta on Monday. It was an enjoyable and value adding 3 day trip. However, I have to say that the first hour at Bali airport was not positive. The air conditioning at the terminal was not working, the building left much to be desired, and Immigration was chaotic, bothering and intimidating. It didn’t concern me as I’ve visited Indonesia at least 15 times and I am aware of the many good things that are evolving in Indonesia. But for those who come here for the first time and see people in uniform saying "give me US$20 and I’ll get your visa quickly". It is not a good first im-

pression. After flying for 12-15 hours, visitors are looking forward to relaxing in paradise not landing in hell! The good news is that there will soon be a new Bali Airport Terminal. I’m sure things will be much smoother then. Hopefully the stylish architecture will be matched by improved services on visa and immigration. This is crucial as one of my main messages as the CEO of PATA is, “A chain is only as strong as its weakest link”. Garuda Indonesia now provides excellent inflight services; great food and movies. Bali has some of the best hotels in the world, not to mention superb natural environment and unpolluted, white sandy beaches, all of which people dream of visiting. But if you have to go through hell to get there, you might not return, right? People who had to queue forever an hour for visa on arrival have many friends who would later ask them how their holiday was in Bali. They may say: "It was great, but you should go somewhere else because it was too much hassle getting through immigration". “Remember, consumers have lots of choices at their disposal when it comes to choosing a place to spend their holidays. So, your weakest link

The good news is that there will soon be a new Bali Airport Terminal. I’m sure things will be much smoother then. Hopefully the stylish architecture will be matched by improved services on visa and immigration. This is crucial as one of my main messages as the CEO of PATA is, “A chain is only as strong as its weakest link”. Martin Craigs Chairman of PATA International

damages the entire chain. Indonesia offers tourists an authentic leisure experience. It has over 17,000 islands to choose from! However the country must develop its tourism in sustainable, balanced and intelligent ways. From what I learned in my meetings in Bali and Jakarta, you're taking off well but it’s a long journey. The mega-new city development plans 100, new cities of 1 million people each by 2040 must be carefully crafted on the basis of a sustainable ie balanced and environmental sound footprint. Travel and Tourism in the 21st century is all about finding a balance between the needs of people working in the business, profits necessary for business, and efforts to sustain the planet. They are called by UNWTO the 3Ps (People, Profit, Planet). I believe Minister Pangestu has the opportunity to strike that balance for Indonesia. Indonesia is already taking a world leadership position as your minister is the Chairwoman of the World Economic Forum committee on travel, tourism and trade. Frankly, she is the perfect person for the job as she has served as Minister of Trade in a very distinguished manner and is well respected around the global travel and tourism industry after a productive first year in the job. In Jakarta at the Tourism Investor Conference, investors told your minister how impressed they were with many of aspects of government coordination, and how they were happy that Indonesia is opening up and putting international processes and transparency into its investment process. So, if there is a weak link, it should be addressed

Travel and Tourism in the 21st century is all about finding a balance between the needs of people working in the business, profits necessary for business, and efforts to sustain the planet. They are called by UNWTO the 3Ps (People, Profit, Planet). with high priority. You have got to have the right people with the right mindset. Indonesia is spending millions of dollars on TV ads on CNN and BBC. But it’s self-defeating to then give a bad impression due to poor presentation coordination of Immigration services. As I said good news and bad news. On the other hand, the UK does not have a Minister of tourism as Indonesia does. However, they have a very effective tourism commission whose members are very entrepreneurial. So if you put this in the hands of entrepreneurial or private enterprise people, you do get results. In the meantime, let me make myself clear: I will be back in Indonesia soon. With the future right mindset go into the tourism sector. PATA’s local chapter and our headquarters look forward to helping. The writer is the CEO of Pacific Asia Travel Association (PATA) International, which was established in 1961 in San Francisco. In 1998 its headquarters moved to Bangkok.

November 2012

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Focus DEVELOPMENT POLICIES:

MANUFACTURING

CRITICAL SECTOR

n this era of globalization and modernization, no developing country can afford to be left out in the surge towards manufacturing. In mapping out their development policies manufacturing has become a key element to be included in nations' plans. As rightly stated by Trybout of Pennsylvania University, manufacturing is viewed as the leading edge of modernization, skilled job creation and a fundamental source of positive spillovers. Moreover, with their increasing population, developing countries have to race aginst time to create jobs. Manufacturing and the development of services are needed to create employment opportunities, especially in countries with dense population and rising urbanization. To that end, for a region with such a huge population it is quite astonishing to see East Asia perform extraordinary well and see the vast region on the road of becoming one of the main industrial regions of the world. It will be recalled that this trend was first led by Japan, South Korea, Taiwan and the other NIE’s (newly industri-

(growth rate of real GDP, percent) Before 97/98 crisis

Services 10%

Post 97/98 crisis

Agriculture 15%

Finance 7%

16 14

Transportation 7%

12 10

Mining 11%

8 6 4

Trade 14%

Manufacture 25%

GDP

Buildings 1%

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

1996

1995

1994

1993

1992

0 1991

By Atmono Suryo

Figure 2. Share of GDP

Figure 1. After boom years in the early 1990s Indonesia's manufacturing sector has grown at a much lower rate

1990

With their increasing population, developing countries have to race aginst time to create jobs. Manufacturing and the development of services are needed to create employment opportunities, especially in countries with dense population and rising urbanization.

Non oil and gas manufacturing

Electricity 1%

15.03%. This is all good news which must continue in the years ahead. As stated earlier manufacturing is one of the key sectors which should facilitate the transformation of the economy. As rightly said by Vikram Nehru of the Carnegie Foundation, manufacuring generates large economies of scale, creates high quality jobs, boosts productivity and wages.

Of course, there will also be the need to resolve the wellknown macro and micro challenges facing the country. The business constraints are in such areas as tax rates, tax administration, labor regulations, access to finance and a good legal system. In addition, to ensure the required supply responses there is the need for an increasing flow of FDI (foreign direct investment). Apparently early this year the manufacturing sector is the largest receiver of FDI.

In addition, manufacturing firms become part of regional and international production networks and benefit from international know-how, transfer of technology and access to markets. These are all important elements which can generate the transformation of the economy from a rather traditional economy into a modern and highly productive economy. Manufacturing has its many spillovers and spreads effects which should also go to the outer regions outside Java.

ECONOMIC TRANSFORMATION

Source: BPS and World Bank staff calculations

al economies), often called the Asian tigers. This is now being done by China and India in a big way followed by the other East Asia countries, including South East Asian countries. At one time in the past Indonesia was considered by the World Bank as one of East Asia’s “industrial dragons” covering the mid-1980”s to the mid-1990’s. The pace of development of manufacturing, mostly state enterprises, was reaching the growth of around 12% - 14% (Figure 1). The Asian financial crisis of 1997-98, however, hit the manufacturing sector in such a way that it kept limping since then. Indonesia was considered to have reached the “de-industrialization stage”. During the period 1995-2010 various manufacturing products declined. In particular the TFC (textiles, clothing and footwear) and FBT (food, beverages, tobacco) products. The main reason is that they are losing out in competition with imported goods, especially from China.

accepted. Manufacturing growth urgently needs the availibility of energy, of good roads, effective functioning ports and a rise in telecommunicaton (broadband in particular).

REVITALIZING GROWTH

In the domestic economy, three sectors are the main contributors to the Indonesian economy, namely: manufacturing with 25% (in 2009), agriculture 15% and trade 14% (Figure 2). During the last few years, Indonesia’s macro economic environment has changed considerably, affecting also the manufacturing sector in a positive way. At a recent dialogue meeting at the Ficancial Club, the World Bank came up with a report entitled “‘Picking up the pace: Revitalizing Growth in Indonesia’s Manufacturing Sector”. In the first place the report recognizes the importance of manufacturing in facilitating economic transformation. The report is also offering an option for a policy framework for the years ahead. To highlight the positive developments of manufacturing, the World Bank report came up with

TH E

the following interesting trend. In terms of the global economy Indonesia has made progress as follows: In 1990: Indonesia was the 24th largest industrial producer contributing 6.3 industrial goods out of every 1000 produced globally. In 2000: Indonesia was the 19th largest industrial producer Contributing 8.6 out of every 1000 goods in the global pot In 2010: Indonesia was the 16th largest producer, contributing 10 out of every 1000 goods

It is not clear yet how the report has come with such positive projections, indicating that Indonesia has now reached the stage as the 16th world's largest producer. Nevetheless, many critical observers continue with their doubts about Indonesia’s ability to become such an important supplier of manufactured goods in this highly compettive global environment. In any case it is most encouraging to detect from the explana-

S P I RI T

tions given by the representative of the World Bank that the future for manufacturing is bright for Indonesia.

A shot in the arm

In the area of macro-economic growth Indonesia is on the right track. But as obervers remark Indonesia now needs a shot in the arm, including in such key areas as manufacturing. No doubt Indonesia must contrinue with its robust growth and to bolster its efforts to reduce poverty. These steps will create demand and the development of an increasingly attractive market. It is now beyond doubt that manufacturing will give its positive supply responses not only in the form of a greater output but also in the production of a larger variety of manufacturing products. Therefore, supply responses by the business sector will be urgently needed. However, to bolster manufacturing Indonesia must build more infrastructure. And as fast as possible with no more delays

As the leading sector in the economy the manufacturing sector is a key sector which can expedite the structural transformation of the economy into a modern economy. It becomes increasingly evident that the year 2012 is marked as the beginning of the revival of the country’s manufacturing sector. It is being felt by the stakeholders in the industry that the time has indeed come for such a revival of the industry. As reported by the media, in particular by ICN - Indonesian Commercial Newsletter, a growth of 6.49% - the highest since 2005 - was recorded for the country’s processing industry in the nonoil/gas sector as against 5.09% in 2010.

Another important point which should be underlined is that even for countries rich in commodities such as Brazil and Indonesia it is highly important to propel the growth of the manufacturing and the processing sector. It stimulates the growth of value-added industries which Indonesia needs to diversify domestic production, expand the range of export products and increase income. It is of considerable importance to create a conducive business environment, to convert manufacturing, including the processing sector, to become an effective machinery with the aim to transform the national economy into a modern economy and to bolster in a big way the growth of the outer regions.

Strong growth is being observed for food and beverage processibg industry which grew by 6.49%, followed by transport equipment, and machinery and equipment industries, which grew 7.29%. Even the textile, leather goods and footwear industries grew by 8.63%. Iron and steel base metal grew by

The writer is former ambassador to the EU.

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November 2012

Law & Regulation Legal Protection for Outsourcing Workers and Job Agreement over a Certain Period of Time (PKWT) www.viva.co.id

Article 59 of the Labor Law stated that “A job agreement over a certain period of time may only involve certain types of works or job agreement over a certain period of time of certain nature By Paulus Khierawan

emonstrations demanding for the eradication of the outsourcing system continue to rise because the system is deemed to disadvantage workers as it fails to provide welfare for the workers. These demonstrations need to be tackled immediately because the problem can affect Indonesia’s investment climate if the problem is left unresolved. The demonstrations could even prompt several companies to close their business here due to the unresolved labor problems. The government surely has to prevent this from happening if it still wanted foreign investors to bring in their funds to Indonesia. But first of all we should understand about the outsourcing system. Article 64 of Law No 13/2003 about employment (Labor Law) stipulates that: “Companies may hand over some of their works to other companies through a contract of agreement or employment service providers in writing” The Labor Law, however, did not define what outsourcing is but it can be defined as transferring a business process to a service provider or another party. Basically, if it is implemented well, the outsourcing system should bring positive impacts on the employers, employees and even on the government. The positive impacts of the outsourcing system are as follow.

For employers:

• It can improve the company’s focus; • Better use of skills; • Risk sharing in terms of workers turnover; • Cost-efficiency.

For the people and the workers:

• It helps push other supporting economic activities for people in surrounding areas; • Reduce unemployment rate • Prevent urbanization

For the government:

• It helps spur the national economic growth • It helps grow small, medium enterprises and cooperatives However, despite the positive

Demonstrations demanding for the eradication of the outsourcing system continue to rise because the system is deemed to disadvantage workers as it fails to provide welfare for the workers. These demonstrations need to be tackled immediately because the problem can affect Indonesia’s investment climate if the problem is left unresolved. The demonstrations could even prompt several companies to close their business here due to the unresolved labor problems.

impacts, the system also contains problems. • Uncertainty regarding employment status • Layoff risk • Career uncertainty • Exploitation of workers So, are companies free to choose as they like whether they want to use the outsourcing system or PKWT or hire permanent workers when running their business? The Labor Law anticipated this problem by limiting the activities that may involve PKWT or outsourcing system. Article 59 of the Labor Law stated that “A job agreement over a certain period of time may only involve certain types of works or job agreement over a certain period of time of certain nature such as: a. Works that can only be done once or temporary in nature; b. Works that require an estimated short period of time or at the longest 3 (three) years. c. Seasonal jobs; or d. Works related to new products, new activities, or additional products that are still in

the process of experiment. Clause (2) stated that a job agreement over a certain period of time cannot be applied on jobs with permanent nature. Article 65 clause (2) stated that “jobs that can be transferred to other companies” must meet these criteria: a. Conducted separately from the main activities; b. Conducted based on the direct or indirect order from the job provider; c. An activity that supports the company as a whole; and d. It does not disrupt the production process But in reality, those regulations did not seem to be enough to solve the various problems that emerged. This issue has even been brought to the Constitutional Court, which issued ruling No 27/PUU-IX/2011 which basically said that: “The term about a job agreement over a certain period of time” under Article 65 Clause (7) and the term “job agreement over a certain period of time” un-

der Article 66 Clause (2b) of the Labor Law: • Is contradictory to the 1945 Constitution if the working agreement did not guarantee workers’ rights when some of the works are transferred to another company or an employment service provider • It’s not legally binding if the working agreement didn’t include the requirement to guarantee workers’ rights when another company or an employment service provider takes over some of the works

ing No 27/PUU-IX/2011. Therefore the Constitutional Court has decided that every employee working based on the outsourcing system is entitled to the same rights as employees of non-outsourcing system. Outsourcing companies must also weigh in the working period as a reference to set the wages and other benefits including when they are transferred to other companies that needed employees.

service providers do not act arbitrarily and make sure that they comply with the existing law and regulations. With the currently poor supervisory system, many outsourcing companies have violated the law and as a result, workers do not get enough protection. The government must act swiftly against the outsourcing companies that violated the law. If necessary, the government should revoke the license of those companies.

If you look at it from the perspective of regulations, they should be enough to protect employees working based on outsourcing system or PKWT. But in the course of time, many parties declined to implement this outsourcing system. So what caused the employees of the outsourcing system to decline this system? One must realize that a law/regulation should be implemented and requires a supervisory system. Therefore the regulation should be able to protect the interests of both employers and employees. On top of that, a strong supervisory system is also needed so that employment

The Constitutional Court’s ruling didn’t revoke the articles in the Labor Law about outsourcing, but it did stress the importance to protect the interests of employees working based on the outsourcing system. The Constitutional Court’s ruling was also followed up by the Ministry of Labor and Transportation which issued circular No B.31/PHIJKS/ I/2012 on the implementation of Constitutional Court’s rul-

The government is also expected to socialize its policies both to the workers and employers so that they can understand their respective rights and obligations. The public’s role in supervising the “unruly” companies is badly needed. The government cannot be expected to fully supervise them that the public’s participation is needed to support the supervision process. And last but not least, an independent institution is also needed where the public or workers can file a complaint whenever their rights are unfulfilled.

With the currently poor supervisory system, many outsourcing companies have violated the law and as a result, workers do not get enough protection. The government must act swiftly against the outsourcing companies that violated the law. If necessary, the government should revoke the license of those companies.

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Energy

Biodiesels New Prospects, But Big Challenges Remain Controversies about Jatropha and Camelina Biofuels In 2006 there was euphoria about biofuel development in Indonesia based on a ‘wonder plant’ Jatropha Curcas, and because of record high oil prices in the world market. Jatropha has been known for ages by local people as wild plants (called them as Jarak Pagar, and pagar means “fence”), which could function as greening plants or “fencing” against animals damaging food crops. But due to ill-planned infrastructure and lack of research, the development bogged down and caused this perennial, but primitive plant, to disappear (again) into the forgotten land. Meanwhile, the world market continues to demand Jatropha for biofuel, more specifically for jet fuel. Can jatropha meet this market demand, and how?

By Jon Respati

egulations in EU countries increasingly compel airlines operating there to significantly reduce the greenhouse gas (GHG) emitted by modern jet engines. This is becoming more compelling, the EU countries may block airlines which do not meet their low carbon emission standards. But the airlines found out that using bio-jet fuel, called “bio-kerosene” could increase fuel efficiencies and meet EU requirements. Jatropha biodiesel is considered by aviation industry experts as a ‘green energy’ suitable for fuelling commercial aircraft. One important reason is that jatropha fuel can withstand the extremely low temperature at the cruising altitude of jet aircrafts. Major airlines like KLM, Air France, and Lufthansa have begun using this biokerosene in some of their regular flights in Europe, but face difficulties in finding reliable sources in the European market. Air New Zealand and few US airlines have also used the fuel successfully. Bio-kerosene is produced by processing biological sources such as animal fats and vegetable oils into biofuels which are then used for commercial aviation through blending with conventional fossil-based fuels. So the key appeals of biokerosene are producing low carbon footprint, making the aircraft more fuel efficient, and meeting the current regulations in the EU countries. For 2012, the EU has set a cap on airlines' emissions, measured in tons of CO2 at 97% of the baseline level (the baseline being an average of annual emissions between 2004 and 2006; from 2013 to 2020, this cap will fall to 95% of the baseline. About 82% of the cap will be issued as free emission allowance in the form of EU Aviation Allowances. The European rulings cause airlines to seek an adequate supply somewhere, primarily in tropical countries where jatropha could grow well. But experts doubt if they could find enough to satisfy their need. Based on the fact that a Boeing Jumbo jet carrying 400 passengers would need an average 10,000 liter of fuels per hour, at a typical annual 5000 hours flight operating schedule, it would need 50 million liters per year. Current Bio-kerosene is only a five percent addition in the jet fuel, but it still would need a large amount of land to grow enough for this use. In addition, it should not be competing with land required to produce food. Meanwhile, jatropha biodiesel has also proven to be effective for use with conventional generators to produce electricity. This makes the market even more interesting but it remains challenging because of the limited sources and the current challenges from NGOs like the Friends of the Earth and Millieu Defensie (from the Netherlands). They claim that not only is the amount of CO2 saved by using biofuels still questionable, but the impacts of producing biofuels from marginal lands may cause harms to small farmers. It is known that jatropha only grows in tropical countries in South and South East Asia, Africa and the Latin American tropical zones. The plants are

considered primitive and most countries lack experience in planting jatropha on a commercial scale.

and somewhere else in Asia like in Vietnam and Cambodia, Waterland is using marginal lands owned by state governments and enters into tri-parties agreement between land owners, farmers, and the company. In the current collaboration with PT Perhutani, Waterland and farmers agree to plant jatropha in intercropping with other non-rice food crops, some of them enjoy high value in the global market like gingers and lemongrass (Citronella). The current business model is based on profit sharing to the land owner 25%, the investors (Waterland, is also responsible for the management and technology) 60% and 15% the farmers. Waterland sells the biofuels, and the other products of intercropping plants to the world market.

William Nolten, CEO of Waterland Globe, an agricultural technology enterprise established by a large European consortium of investors, has said on several occasions including the most recent meeting with officials of the Energy and Agriculture Ministries in Purwodadi, Central Java, that growing jatropha is not a big deal, but the challenge is to make the plants produce an economically acceptable amount of fruits which could be used as feedstock for biofuels. Nolten said that worldwide experiences show that growing jatropha in a monoculture plantation was not so successful, because it led to loss of bio-diversity, water depletion, and continued increase of greenhouse gases emissions contributing to climate change. “Jatropha is more suitable to be cultivated as a hybrid using intercropping methods”, said Nolten. This is what his company is doing in collaboration with PT. Perhutani and local farmers in Purwodadi, around 70 km from Semarang, the capital city of Central Java province, Indonesia. Perhutani is a stateowned enterprise (SOE) managing the remaining forest areas in Java. This SOE oversees and manages Javanese Teak plantations across the island that was formerly controlled by Dutch companies under the old colonial rule. Monoculture planting methods were used by some Indonesian growers expecting jatropha plants to produce large volume of crude jatropha-curcas oils in the wake of the country’s euphoria about jatropha’s prospects in 2006. A wide range of research publications then predicted that these plants could produce 5-8 tons/hectare per year after year 5 with fruit production declining after 15-20 years. But local researchers have found out more recently, after about 7 years of focused research on jatropha plantations using various seeds genetically originating from various places across the country and some from foreign origins, that the plants only produce on average less than 3 tons per hectare in 2-3 years, and show strong decline after year 3. In addition, the researchers found that jatropha does not have the true characteristic of a perennial plant, as the trunk is likely not strong enough to stand over 15-20 years. They also saw during their research that the plants produce lower yields after 2 years. This led them to conclude that jatropha plants needs to be totally rejuvenated after 3 – 4 years if they are to produce reasonable amount of fruits. According to the researchers, improving yields could be done by adding the planting density (from normally 2.5 to 1.0 meter) on the plots. This finding contradicts the current general expectation about jatropha and some other experts may not agree to these new findings, but the one thing the experts did agree on was that monoculture planting is not a suitable method for cultivating jatropha. Bambang Prastowo, a senior researcher at the Center for Plantation Research and Development (CPRD) under the Ministry of Agriculture informed RESPECTS recently that earlier research findings were mostly based on extrapolation of jat-

Jatropha Curcas

to keep a fleet of Boeing 747 in the air for one year on a B5 blend biokerosene, it needs about

Camelina Sativa

10,000

ha of Jatropha intercropped with a Camelina plantation.

ropha plants’ yields in laboratory settings. CPRD has been cultivating various jatropha plants on 100 ha of land near Bogor, West Java since 2005. CPRD‘s team were looking closely at the behavior of jatropha plants during the last 6 years to arrive at those conclusions. “The necessity to rejuvenate the plants every 3 years would burden farmers with extra costs but this could eventually be compensated by the value of the biomass resulted from replanting, if it could find the right market,” Prastowo said.

Camelina Biofuels

For the last few years, Camelina oil has received attention as a renewable energy stock for the alternative fuels expansion. The plant, officially called Camelina Sativa, is native to Northern Europe (where it has grown for several thousands of years) and to some Central Asian areas. According to Best Alternative Fuels Sources (BAFS), a forum for exchange of ideas and experience about alternative fuels in the US, Camelina oil has traditionally been used in lamps, as cooking oil, and as animal feed. It has reasonable oil content (9%) but lower than other biofuels crops like jatropha (14%) or rapeseeds (11%). Camelina has lower water, fertilizer, and pesticide requirements than traditional oilseed crops, like soybean and sunflower, and produces a by-product when the oil has been extracted, called Camelina meal, which has a significant protein content that makes it suitable as animal fodder. Camelina has lately been researched as a biofuel stock for biodiesel and jet fuel (biokerosene) for the US military and the aviation industry. Experts say that Camelina is easier to grow than Rapeseed. It has only about three months harvesting cycles, compared to six months for rapeseed and one year for jatropha. Alternative diesel fuel made from Camelina also showed better

cold start characteristics compared with rapeseed. This characteristic has made it comparable to jatropha which was earlier considered suitable for aviation fuels. Even though Camelina may grow on more marginal land, but not thrive, one way to minimize the competition of Camelina with food crops in land use is to plant it in rotation with other crops. Unfortunately Camelina is generally categorized as a food crop. Therefore, like palm, Camelina biofuels are controversial, and some environmentalists opposed its use as biofuels feedstock. But according to Toshi Nakajima, Waterland Chief Operating Officer, Camelina could grow on marginal lands in warmer countries. Therefore his company is embarking on an experiment of planting Camelina in Indramayu, West Java and some other places on Java, in rotation with other food crops on marginal land. Meanwhile, according Waterland’s CEO, Nolten, some ASEAN countries including Malaysia, Laos, and Thailand have made Camelina Biofuels a national projects, and Waterland is involved with these projects. Waterland hopes that Camelina could thrive better in tropical climates and in combination with jatropha, this plant could increase biofuels production for the world market. But Nakajima said that the experiment would not use lands which could be used to grow food crops. As in the Grobogan (Purwodadi, Central Java) projects, the Camelina plants are using marginal lands controlled by Perhutani. But unlike Jatropha, Camelina could not be cultivated using intercropping method; therefore Waterland will use the rotating method. Nakajima said that one ha of Jatropha intercropping with Camelina plantation in Indo-

nesia would yield an average 3 MT, i.e. 3276 liters of fuel per annum, therefore using the IEA standard of mandatory blend of 5%, 15.262 ha of plantation are needed to power one Boeing 747 jet continuously for one year. On this basis, 755 ha of Jatropha intercropped with a Camelina plantation would meet the renewable fuel needs of one Boeing 747 during one full year of operation. Further Waterland claims that such a model would save some 23.405 trees (37 Ha of forest) in Java from being ‘grabbed’ by local landless farmers living near the forest area. Therefore, to keep a fleet of 13 Boeing 747 in the air for one year on a B5 blend biokerosene, it needs about 10,000 ha of such rotating plantation and saves at the same time 310,000 trees (496 hectare of forest) in Java-Indonesia. But experts say that Camelina has some shortcomings which make it challenging to grow on infertile soils. Camelina is part of the plant family Brassicaceae (mustard), and as such it can't enter into symbiosis with the soil fungi mycorrhizae, which can lead to improved plant growth and reproduction. The lack of symbiosis with mycorrhizal explains why Camelina can't really thrive on marginal land and the crop instead would need both water and added fertilizer to give a decent yield. More importantly, based on the understanding that crops which actually can't thrive on less fertile land without a good deal of energy input, it doesn't bring many advantages of renewable energy. Therefore whether Waterland’s Camelina experiment in West Java is successful will remain to be seen. But Nakajima and Waterland expect Camelina plantation in Indramayu will begin to provide yield sometime this year.

Business Model for Smallholders’ Hybrid Plantation

For its operation in Indonesia

The intercropping model would provide an extra 30- 40% of the profit from intercrop products revenue. Under the current agreement, Waterland pays IDR 1,600 per kg for dried jatropha fruits to farmers. With the yield of 3 tons/year/ha, farmers will get IDR 4.8 million a year or about IDR 400,000 a month per hectare. However, farmers will enjoy extra income from intercrop products which will make them earn more than that amount, but this total amount will depend on the “extra” they’ll get from the type of other crops planted on particular seasons. Based on current estimate farmers will typically earn in total about IDR 1,300,000 (USD 140) per month in average. According to recent UN data (2009), 35 million people in Java live below the poverty level with an average monthly income of 188.000 IDR (= 21 USD) per month. Looking from this perspective, such business models, if properly managed, will contribute to reducing poverty among the landless farmers and smallholders impacted by the projects. How much the farmers will get from the Camelina plants model is not known, but overall Waterland believes this business model is providing win-win solution to all stakeholders.

Enzymatic Biofuels Production

Waterland has collaborated with Fraunhofer Institute in Germany to develop more efficient and sustainable biofuels production processes. A new process is using an enzyme to forge the process of estherification quicker and more efficient compared to conventional estherification processes (see table 1). The process produces no waste and consumes less energy, and therefore could reach almost 100% production yields in each production cycle. This system has been patented worldwide and Waterland has acquired the right to use by its organizations all over the world

Indonesian Domestic Biofuels Use

The government continues to support using biofuels to reduce the use of fossil fuels. Pertamina, the state-owned fuels producer and distributor has introduced BioPertamax based on initially 1- 2% ethanol blend and BioSolar a B-5 biodiesel since two years under the government regulation issued by the Minister of Energy and Mineral Resources. The regulation mandated Pertamina to produce and distribute increasing amounts of biofuels blend with increasing amount of biofuels input over some years, which is to be sold at the same price as the current-

ly subsidized fossil fuels. On top of that, the government was providing IDR 2,000/liter subsidies for biofuels and even has increased it to IDR 3,000 for Biodiesels and IDR 3,500 for BioEthanol, but these regulations don’t work as well as expected. One of the main reasons for this is that the government sets the buying price of biofuels at a level which is considered unattractive to producers. As the current biodiesel is mainly produced using crude palm oil (CPO) which is traded in the world market at lucrative price, the domestic biofuel price could not compete with the CPO price in the world market. Therefore producers choose to export their products rather than to produce biofuels for domestic market. Consequently, Pertamina could not get adequate supply to produce their branded biofuels for its consumers. Paulus Tjakrawan of the Indonesian Association of Biodiesels Producers (APROBI) told RESPECTS that the government has currently set a subsidy of IDR 3,000 per liter for biodiesel with a quota of 6,000 Kiloliters of consumption per year. This is good news for producers, but according to APROBI, the government should find reasonable ways to make the system work by considering the difference in transportation costs for the biofuels feedstock from different places in the country to the blending plants which are primarily in Java and Sumatra. Under the current regulation, the cost of transportation is carried by the producers. Tjakrawan said that the previous years’ quota was not fully consumed because the government based it on the national consumption, while in actual fact the distribution biofuels does not take place nationally, as yet. According to Marietje Hutapea, Director of Bio Energy at the MEMR, the government is aware of the problems pointed out by APROBI and is currently seeking ways to solve them together with relevant stakeholders. She said that the primary problem in implementing the biofuels regulations was that the biofuels producers found the selling price plus the old amount of subsidy did not give them an adequate margin. For bioethanol, the situation was even worse because the buying price plus subsidy was still lower than their production costs. With the increased subsidy and additional regulations that follow, Marietje expects the domestic use of biofuels, primarily biodiesels, will meet the target that the government set two years ago. Looking at the situation of total biofuels demand worldwide, especially in Europe, where regulations for using clean and sustainable energy are strong, biofuels still have quite bright prospects in the years ahead, but challenges around the controversial issues like the energy balance, ecological imbalance caused by cultivating energy crops at the cost of food crops and socio-economic challenges around the production process, especially at the farmers’ level, mean that biofuels remain as the most controversial renewable energy source available today. The world should find a way to set a clear definition of sustainable biofuels and countries should allow adequate size of lands to plant energy crops without competing with food production.

www.thepresidentpost.com

November 2012

International Betawi and Papua Dance Enlivens Kagoshima Youth Art Festival www.kbritokyo.jp

Indonesian culture in Kagoshima has brightened this art festival, along with the performances from Bangladesh, Hong Kong, South Korea, Malaysia, Singapore, and Japan.

he cultural mission “the Rose of Culture” from Jakarta local government came to the 7th Kagoshima Youth Art Festival in Kagoshima City, Japan, on 20-21 October 2012. The group brought the dynamic of Betawi music and dances, with the dancers wearing bright colorful costumes. The group is set to to further introduce Indonesian culture in Japan. "We are delighted to perform here in Kagoshima, to introduce Betawi culture from Jakarta," said Adhika Pratama, the group rep. Not only performing on main stage in Houzan Hall, "the Rose of Culture" also danced on Chuo Park stage.

"This dance is to show our love on cultural diversity in Indonesia. We are truly hoping that Japanese people can also learn about cultures from eastern Indonesia," added Leo from the group. Indonesian culture in Kagoshima has brightened this art festival, along with the performances from Bangladesh, Hong Kong, South Korea, Malaysia, Singapore, and Japan. At this event, Attache of Education and Culture of Indonesian Embassy in Tokyo reiterates the importance of such cultural festival to enhance cross-border and multi-cultural understanding and friendship, especially among the youths.

The conference was hosted by Indonesia and the United Nations with high-level delegations from 50 countries of the region.

Key elements of the Yogyakarta Declaration include calls to integrate local disaster risk reduction and climate change adaptation into national development planning; identify accountability measures for effective implementation; political commitment to deliver at all levels; promote awareness, education, public access to information and resilient investments;

Indonesia and Australia agree to continue strengthening their common efforts in the prevention of human smuggling. Following a discussion with the Australian Shadow Foreign Minister Julia Bishop, Indonesian Foreign Minister Marty M. Natalegawa said, “There is no difference of opinion, the two agree to put forward the Bali Process in the fight against human smuggling”. According to Minister Marty, both RI and Australia believe that managing the issue is a national and regional responsibility for both countries. “After our last discussion, we are quite satisfied with Minister Julia’s explanation and we expect the common efforts tak-

Marty M. Natalegawa Indonesian Foreign Minister

en by the two countries to continue”. Besides detailed discussion on the efforts to prevent the act of transnational crimes, the two foreign ministers also delved deeper into various bilateral and issues developing in the region that concerned both nations.

Indonesia Exploring Cooperation with Northern Thailand Province

Conference Issues Yogyakarta Declaration on Disaster Risk Reduction in Asia Pacific The fifth Asia Ministerial Conference on Disaster Risk Reduction generated a “Yogyakarta Declaration on Disaster Risk Reduction in Asia Pacific 2012” to be implemented over the next two years.

Indonesia, Australia Strengthen Efforts to Prevent Human Smuggling

and allocate resources to build local capacity. “The conference has been a breakthrough in ensuring that building disaster resilience and reducing risk are embedded into the post-2015 development agenda. The world has always looked to Asia for leadership in disaster management and the Yogyakarta Declaration outlines clearly what the

region's expectations are for a new international agreement on disaster risk reduction,” said Margareta Wahlstrom, the UN Secretary General’s Special Representative on Disaster Risk Reduction and Head of UNISDR. The declaration concerns not only Asia but the entire world and it was necessary that all

stake holders push the agenda of risk reduction. National Disaster Management Agency (BNPB) prevention and preparedness deputy chairman, Sugeng Triutomo, said the Yogyakarta Declaration would be presented at the global conference on DRR to be held in May 2013 in Geneva.

Indonesian Ambassador to Thailand Lutfi Rauf met with Nong Khai Province Governor Wirat Limsuwat in his working visit to the province of Nong Khai. During the meeting, it has been discussed cooperation between Indonesia and Thailand, especially the Province of Nong Khai, among others cooperation on trade and education. Ambassador Lutfi specifically highlighted the readiness of Thailand in the ASEAN Community 2015. From the posters seen in public places, Thailand has been active to outreach its citizens on ASEAN Community. In addition, the infrastructure in Nong Khai is relatively good, including Udon Thani International Airport which is located 50km from Nong Khai. This province is only 35km from the city of Vientiane, the

Lutfi Rauf Indonesian Ambassador to Thailand

capital of Laos. Passers from both countries can go through the Thai-Lao Friendship Bridge spanning on the Mekong River. The bridge can be traversed by car and train to ease the traffic of people and goods. Given the proximity and efficient crossborder system, Nong Khai is also an alternative place for the citizens of Laos for shopping and sightseeing.

November 2012

www.thepresidentpost.com

Education

Gerakan Indonesia Berkibar to Boost Quality of Indonesian Education Gerakan Indonesia Berkibar has four programs covering boosting teacher professionalism; educational leadership and school management; school governance program; and other advanced program.

The President Post/Heros Barasakti

oinciding with the Youth Pledge Day, October 28, Minister of Education and Culture Muhammad Nuh inaugurated Gerakan Indonesia Berkibar (GIB). The movement is a partnership between the government, the private sector and community groups concerned with the quality of education in Indonesia. "The government appreciates Gerakan Indonesia Berkibar for helping the government in advancing our education," said the minister in his speech. The more parties involved, added the minister, the greater the hopes for a better Indonesia.

vanced program. As an organization that carries public-private partnership, GIB brings together partners from private corporations, state-owned enterprises, the media and community groups to contribute. GIB chairman Pontoh Shafiq said GIB has received the support of seven local governments, namely, Jakarta, West Java, Central Java, East Java, South Sumatra, Central Kalimantan and West Kalimantan. The support from other provinces is expected to come soon after the inauguration. At least 34 institutions have joined in to allocate their social responsibility (CSR) budgets in its movement.

Gerakan Indonesia Berkibar has four programs covering boosting teacher professionalism; educational leadership and school management; school governance program; and other ad-

The facilitators, such as foundations, NGOs, ambassadors and volunteers, can take part to promote education quality improvement program. The facilitators can offer programs that

can help Indonesia create future leaders that address global challenges. Meanwhile, the media, the entertainment industry, education stakeholders, community leaders, social activists, parents, school principals, and learning institutions will work to increase the understanding of the importance of education through the dissemination of information to improve the quality of teachers and schools in Indonesia. The inauguration of GIB was marked by the signing of the inscription by Minister Nuh accompanied by Deputy Minister of Religious Affairs Nassaruddin Umar and Chairman of GIB Shafiq Pontoh. The inauguration was attended by Ambassador of Austria to Indonesia Andreas Karabaczek, GIB Committee members, and community leaders and artists supporting GIB.

Austria Offers Higher Education Scholarships The Government of Austria is offering higher education scholarships for students and lecturers in Indonesia. A short-list of ten candidates will be selected to receive scholarships. Ambassador of Austria Andreas Karabaczek said Austria is one of the favorite countries for students to gain knowledge of higher education. "The education cost is free for students from Indonesia," he said in a meeting with Minister of Education and Culture Mohammad Nuh at Kemdikbud. The minister said the scholarships granted by the government

Andreas Karabaczek Ambassador of Austria

The education cost is free for students from Indonesia."

of Austria are a great opportunity for students in Indonesia. He hoped that more students can be sent to study in Austria. He explained that next year, the government endowment fund or the National Education Development Fund as much as Rp 10 trillion will be used partly to provide S2 and S3 scholarships. "Not only for lecturers, but also for the general public," he said. Indonesia and Austria will follow up the cooperation and provide scholarships to universities in Indonesia through the Directorate General of Higher Education (DIKTI) website.

Indonesian Students in China Set Up Association Indonesian students in China have set up an association in the first congress held in Beijing on October 27-29. The congress was attended by student representatives from several cities in China and named Trisna Metta Widyani as the chairperson of the Indonesian Students` Association (PPI). Trisna Metta Widyana is a master program on international relations student at Xiamen University. Education Attache of the Indonesian Embassy in China Chaerun Anwar said the PPI China was only formed now because the number of Indonesian students in China used to be very small compared to that in other countries. "In 1998 the number of Indonesian students in China stood

In 1998 the number of Indonesian students in China stood at only 1,000, mostly studying the Mandarin language. After 2004, following China`s progress in various fields, including education, the number of Indonesian students pursuing further study in China increased to reach the present number of 9,535."

at only 1,000, mostly studying the Mandarin language. After 2004, following China`s progress in various fields, including education, the number of Indonesian students pursuing further study in China increased to reach the present number of 9,535," he said. He said Indonesian students study in various secondary schools and universities in Beijing, Shanghai, Nanning, Chongqing and others, adding that most Indonesian students or around 62% are studying Mandarin. The Indonesian students have set up organizations in their respective regions but "now as their number has increased time has come for them to unite in one organization accommodating all Indonesian students in China," he said.

126 Integrated PAUD to be Built Until End of This Year Ministry of Education and Culture through Directorate General for Early Childhood Education, Non-formal and Informal (DG PAUDNI) will allocate funds to build 126 unit new buildings by the end of this year for early childhood education. Each institution will obtain Rp 300 million. The funding to build PAUD is sourced from the State Budget 2012. Director General PAUDNI Lyd-

ia Freyani Hawadi said from the total state budget of DG PAUDNI, some will be used to construct integrated early childhood education and welfare programs of PAUDNI teachers. "But the amount of money we have is not comparable with the target to be served, so we need the support of the local government," she said during a working visit to the Bima District.

Bima is one of the districts that receive aid allocation of integrated PAUD. Besides Bima, Dompu District at NTB also receives the same fund. However, Director General PAUDNI confirmed that the aid will be eliminated next year. Funds initially allocated for the building of Integrated PAUD will be diverted to help expand the PAUD pilot program, Rp 35 million for each institution.

The President Post

BUSINESS BUSINESS BRIEFS BNI’s Profit Up 24% in Q3 State-owned Bank Negara Indonesia (BNI), the country`s fourth largest lender, posted a net profit of Rp5.04 trillion for the quarter ended September 30, up 24.5% against Rp4.1 trillion in a corresponding period last year. The high growth of net profit was the result of the bank`s improving performance in providing conventional banking services such as credits and improving extra services such as cash management and trade finance, BNI President Director Gatot M Suwondo said here on Monday. Operating income grew 12.l%, fueled by net interest income which rose 19% in the third quarter of 2012 to Rp11.2 trillion from Rp9.4 trillion in the same period a year earlier. Loan-to-deposit ratio (LDR) meanwhile fell to 76.8% in the third quarter of 2012 from 78.3% in a corresponding period last year, caused by a decline in U.S. dollar-denominated financing in line with the bank`s policy to focus on rupiah-denominated financing. The amount of third party fund placement in the quarter ended Sep-

SECTION B November 2012 No. 38 www.thepresidentpost.com

tember 30 reached Rp238.9 trillion against Rp204.4 trillion in the same period last year. As per September 30, 2012 the bank`s assets reached Rp310.4 trillion, a 15.6% increase compared with the same period last year. The asset growth was particularly contributed by a 14.8% rise in credit value to Rp184.5 trillion in the third quarter of 2012 from Rp160.7 trillion in the same period a year earlier. This suggests that the bank`s productive assets continue to increase and serve as a main source of income.

He added his company already secured the operation license from the Upstream Oil and Gas Regulator (BP Migas) in 2007 valid until 2037. He said his company has a 49% participating interest in the block through its subsidiary Eastwing Global Investments Ltd while PT Hexindo Gemilang Jaya holds the majority 51% stake. Eastwing was acquired by Sugih Energy from Roots Capital Asia Ltd in February 2012 at a price of Rp2.07 trillion.

SUGI Starts Oil Drilling in Jambi

State electricity company (PLN) said it has raised $1 billion from the issuance of 30-year global bonds. The bonds were offered through an intraday execution strategy at a series of meetings with global investors from Asia, Europe and the United States, PLN President Director Nur Pamuji said in a press statement released here on Friday. “The transaction of unsecured bonds marks the PLN`s comeback to the international capital market following the issuance of bonds worth $1 billion at a coupon of 5.5% in November 2011,” he said. He said the 30-year bonds due in October 2042 are the first issued by PLN in the past five years at a coupon of 5.25% and a price of 98.514% or a yield of 5.35% per year. “The bonds received good responses from global investors. Subscriptions for the bonds came from more than 380 investors with a total value of $11.5 billion,” he said.

Listed energy company PT Sugih Energy Tbk (SUGI) said it will start drilling in the oil and gas field of Selong I in the Lemang Block in Jambi next week. “On Oct 29 we started drilling the first well in Selong I,” Andhika Anindyaguna, the president of Sugih Energy , said here on Wednesday. Andhika said based on a study by an international consultant DeGolyer & MacNaughton (D&M), the Lemang block has a reserve of 511 million barrels of oil and 467 billion cubic feet of gas. He said his company already spent $12 million on infrastructure to support the drilling activities in the block including access road to facilitate transport to Selong-1, and to assemble drilling equipment and other heavy equipment.

PLN Raises $1b Global Bonds

Pertamina to be Majority Shareholder in Mahakam: Deputy Minister www.tender-indonesia.com

Pertamina would hold a majority participating interest of between 51% and 70% in the Mahakam oil and gas field in East Kalimantan.

eputy minister of energy and mineral resources Rudi Rubiandini assured here on Monday that Pertamina would hold a majority participating interest of between 51% and 70% in the Mahakam oil and gas field in East Kalimantan. “Mahakam has always been for Pertamina. Later, Pertamina will participate in its management holding minimally 51% and maximally 70% shares,” he said after a meeting with House of Representatives` Commission VII members. He said the 70% shares include the shares to be allocated for regions. “So, Pertamina will minimally hold 51% and along with regions will hold maximally 70% shares,” he said. The remaining 30% participating interest will be held by Total E&P or along with other contractors, he added. Total`s presence, he said, is still needed to provide funds and technology. To assure production sustainability Total will still be the operator of Mahakam for the first five years, he said adding “later it will be operated by Pertamina.” Pertamina, the state-owned oil and gas company, has already formally applied to manage the Mahakam Block after Total E&P Indonesie`s contract expires in 2017.

Deputy minister of energy and mineral resources Rudi Rubiandini Total first signed the contract for the management of Mahakam on March 31, 1967 for a 30 year period. On March 31, 1997 the contract was extended for 20 years more and it would expire on March 30, 2017. Besides Total, which holds 50% shares and is its operator, there is also Inpex Corporation in the Mahakam Block that holds the remaining 50% shares. Until October this year Total has produced 1,9156 million cubic feet of gas and 67,478 barrels of oil per day. The Mahakam Block is estimated to hold 17% of proven national gas reserves or 12.7 trillion cubic feet.

Pertamina to Acquire Petrodelta Shares

Pertamina is seeking to acquire shares of Petrodelta SA, which is the subsidiary of Harbest Natural Resources Inc. At present the company is in

talks with the government as the company`s shareholder with regard to getting an approval to carry out the transaction, company president director Karen Agustiawan said here on Tuesday. “We are optimistic the talks could be finished according to the schedule agreed in the deal,” she said. Pertamina has signed a share purchase agreement with Harvest for the effective acquisition of 32% shares in Petrodelta, which is a Venezuelan oil and gas company. The two companies have until March 2013 to meet all conditions for the deal such as approvals from the shareholders of Pertamina, Harvest and the government of Venezuela. Karen meanwhile considered media reports that the transaction was hinged on factors outside the transaction put in a written agreement as speculative. “Pertamina remains committed to realizing the transaction and in line with a business entity`s policy we would not comment on any speculation about the transaction,” she said. Petrodelta`s field has total proven and probable reserves of around 486 million barrels of oil equivalent. Its hydro-carbon reserve is bigger than that in Cepu Block which is Indonesia`s biggest reserve found in the past 10 years.

Mahakam Block. Pertamina, the state-owned oil and gas company, has already formally applied to manage the Mahakam Block after Total E&P Indonesie`s contract expires in 2017. Total first signed the contract for the management of Mahakam on March 31, 1967 for a 30 year period. On March 31, 1997 the contract was extended for 20 years more and it would expire on March 30, 2017.

Bank Mandiri, ASEI Boost Exports Efforts www.bisnis-jabar.com

State owned lender Bank Mandiri signed an agreement with export insurance firm Asuransi Ekspor Indonesia (ASEI) and the trade ministry to help boost exports to non traditional markets amid the global slump. Expansion of export markets to Middle East, East Europe and South Africa are expected to help offset a decline in the country`s exports to its traditional markets like the European Union, the United States and Japan. Expansion targets also include countries grouped in the Regional Comprehensive Economic Partnership (RCEP) atau ASEAN + 6 (Australia, China, India, Japan, South Korea and New Zealand). Bank Mandiri, ASEI and the trade ministry signed their commitment in a memorandum of understanding here on Thursday. Bank Mandiri`s president Zulkifli Zaini said exporters find the condition difficult at pres-

The country`s largest bank in terms of assets, Mandiri and ASEI will be ready to help international transactions such as pre-shipment financing and post-shipment financing both LC and non LC transactions with competitive interest rate, he said. The collaboration between Bank Mandiri and ASEI is expected to be able to keep the risk under control in export financing and that more financing services could be offered especially in exports to non traditional markets, he added.

Bank Mandiri President Zulkifli Zaini

Mandiri and ASEI will be ready to help international transactions such as pre-shipment financing and postshipment financing both LC and non LC transactions with competitive interest rate. ent under global uncertainties as a result of the European debt crisis, which shows no letting up. Exporters need to find

new markets in countries outside Indonesia`s traditional markets, which are beset by the global slump, Zulkifli said.

Commercial and Business Banking Director of Bank Mandiri Sunarso said exports financed by Bank Mandiri has increased 30% annually on the average in the past three years. Until September 2012, export transactions handled by the bank reached $40.8 billion and imports transaction totaled $42.5 billion or an increase of 31% on the year before.

World Bank: Indonesia’s Business Environment Improving A new IFC and World Bank report finds that in the year from June 2011 to June 2012 Indonesia improved its regulatory environment through a reform, making it easier for local entrepreneurs to obtain an electricity connection. The newly-released IFC report, “Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises” finds that since 2005, Indonesia has implemented a total of 18 institutional or regulatory reforms in nine of 10 areas of business regulation as measured by the annual Doing Business report, the World Bank said in a press statement here Tuesday. In the most recent reform recorded, the utility PT PLN simplified the application process for an electricity connection by eliminating the requirement to bring in a copy of a neighbor’s bill to

help determine the exact address of the new customer’s business. The report, which covers 185 economies globally, finds that 11 of 24 economies in East Asia and the Pacific improved business regulations in the past year. Singapore tops the global ranking on the ease of doing business for the seventh year straight. Hong Kong SAR, China, holds onto the second spot. This year`s report also features a case study that explores reform efforts by members of Asia-Pacific Economic Cooperation (APEC) using the Doing Business framework. Indonesia is among the APEC members working within this framework to make it easier to start a business and to improve its system for enforcing contracts. “Indonesia has made some improvements over the last 8 years,

and it still strives to further strengthen the predictability and clarity of its regulatory framework” said Stefan Koeberle, World Bank Country Director for Indonesia. “However, the pace of change has slowed since significant improvements were made between 2005 and 2009. Strengthening the investment climate for small and medium-size businesses would require sustained efforts in improving infrastructure, tax administration, and the availability of credit,” he added. The report`s global annual ranking on the ease of doing business shows that the 10 economies with the most business-friendly regulation are Singapore, Hong Kong SAR, China, New Zealand, the United States, Denmark, Norway, the United Kingdom, the Republic of Korea, Georgia and Australia.

November 2012

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Business

Megasurya Expands Markets to Cuba, Myanmar and N. Korea Megasurya exports no less than 200 containers of soap products such as Liesel, Eve, Harmony, Lervia and Medicare every month to various countries worth around one trillion rupiahs last year.

roducer of palm oilbased products PT Megasurya Mas is expanding to countries such as Cuba, Myanmar and North Korea in its efforts to increase its soap products exports in the midst of gloomy markets in Europe and the U.S.

“We have conducted exports to 132 countries including to Cuba, Myanmar and North Korea,” the company`s marketing director, Hadi Sofian, said here on Thursday. He said the company exports no less than 200 containers of soap products such as Liesel, Eve, Harmony, Lervia and Medicare every month to various countries worth around one trillion rupiahs last year. “Almost 100% of raw materials used in our products come from home,” he said. Besides soaps the company also produces candles which are also exported, he added.

ing among the problems being faced is payment.

Because of the efforts PT Megasurya Mas has been given “Primaniyarta Award” by the government for seven times so far based on export pioneer category.

Hadi admitted it was not easy to enter countries like Myanmar due to conflict there as well as Cuba and North Korea which are facing a U.S. embargo, add-

In view of that he said he had been very careful in choosing partners in non-traditional markets as exports must be done through China. “We usually use banks which are affiliated in Indonesia and the companies we are partnering with have accounts in the banks,” he said. Because of the efforts PT Megasurya Mas has been given “Primaniyarta Award” by the government for seven times so far based on export pioneer category. Musim Mas Group meanwhile has received an award in the performing exporter category. “I am grateful for the success of Musim Mas Group in clinching the Primaniyarta Award. This is

the results of the hard work of all stakeholders,” he said. The trade ministry at the opening of Trade Expo Indonesia on Wednesday presented Primaniyarta Awards to 33 exporters in appreciation for their performance in promoting the country`s products abroad. The award is given to exporters that have been able to perform well, build a global brand, pioneer exports and to exporters classified as small and medium. Four other companies receiving the award for having been able to penetrate new markets besides Megasurya are Basuki Pratama Engineering (boiler), Gading Dampar Kencana (furniture), Kinema Systrans Multimedia (animated films) and Latransa Citra (herbs and spices).

Jamsostek Exceeds Investment Target www.wartaekonomi.co.id

State-owned workers’ insurance company PT Jamsostek Persero said it has overshot its investment target of Rp125.7 trillion set until the end of this year. By September Jamsostek`s investment already reached Rp127 trillion, its president, Elvyn G. Masassya, said here on Thursday. From investment the company earned Rp9.9 trillion in the first nine months of the year, Elvyn said. The company`s target for investment return this year is

set at Rp12.2 trillion, he added. “We have been on the right track. Everything is going as planned. There is no revision of targets,” he said. He said he could not yet predict for next year as targets would be set based on the economic condition and interest and exchange rates. “However, investment return would be more than 10% next year,” he predicted. He said the management is studying plan to buy bonds issued by other state companies or private companies. Fund of

around Rp2.5 trillion has been set aside to buy bonds with rating of at least “A” with nominal value above Rp500 billion, he said. “Currently we are reviewing bonds issued by four companies operating in various sector,” he said. He said Jamsostek will buy part of the right shares to be issued by PT Bank Tabungan Negara Tbk (BBTN), but he refused to give any figure. “It is our right, but as it is, it depends on you whether or not to exercise your right. I say we would,” he said.

Jamsostek President Elvyn G. Masassya

Bank Danamon Profit Up 22%

PT Bank Danamon Indonesia Tbk President Henry Ho Listed PT Bank Danamon Indonesia Tbk (BDMN) reported a 22% increase in net profit to Rp2.99 trillion on year in the first nine months of the year. Henry Ho, the president of the country`s sixth largest lender, attributed the increase in profit to gain from “mass market” of small and medium scale businesses and wholesale. Henry said the bank`s outstanding credits rose 16% to Rp113 trillion by the end of the third quarter of this year from a year earlier. He added credits went to the mass market grew 14% to Rp64 trillion or 57% of the bank total outstanding credits. In the third quarter of this year alone, credits for the small and medium business sector grew 25% to Rp17 trillion from a year earlier and credits for the wholesale sector rose 21 percent to Rp14 trillion, he added. He said despite the surge in credit expansion, the bank succeeded in cutting its non performing loans (NPL) to 2.4% by the end of last month from 2.9% a year earlier.

We have sufficient level of liquidity to continue to push for growth. We manage liquidity based on the ratio of credits to financing, rather than credit ratio to third party funds.” Meanwhile, third party funds held by the bank, which is owned by Singapore`s Temasek Group, reached Rp88.3 trillion by the end of September. Deposits made up the largest part or Rp49.3 trillion of the third party funds with giro funds and savings accounting for Rp13 trillion and Rp26 trillion respectively. “That means the bank`s loan to deposit ratio (LDR) is 103.5%,” Henry said. He said he was not worried by the high level of LDR as the bank has strong capital with capital adequacy ratio of 18.7%, up from 17.8% earlier. “We have sufficient level of liquidity to continue to push for growth. We manage liquidity based on the ratio of credits to financing, rather than credit ratio to third party funds,” he said.

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November 2012

Investment vestment in Indonesia which reached $1.2 billion in 2011 has not reflected its real potential,” he said. The Chinese investment in Indonesia is still far below that of Singapore, Japan, South Korea and The Netherlands, he said. “Ideally, Chinese investment in Indonesia should increase by $2 billion per year,” he said.

INVESTMENT BRIEFS RI is China’s Second Biggest Investment Destination

RI Offers Incentives to Investors in Energy

Indonesia is the second biggest destination of Chinese investment in the Southeast Asian region, according to the Chinese Trade Ministry. China`s overseas direct investment (ODI) in Indonesia reached $590 million in the first seven months of this year, the head of the international trade and economic cooperation department at the Chinese Trade Ministry, Jiang Jiqing said here on Wednesday. “Hopefully, the figure will continue to increase in line with the Chinese government`s go global policy which encourages Chinese investors to invest overseas,” he said at a seminar on investment opportunities in Indonesia. Meanwhile, Indonesian Ambassador to China and Mongolia Imron Cotan said Chinese investment in Indonesia is still relatively small. “With its foreign exchange reserves reaching $3.5 trillion, China`s in-

Jero Wacik

Indonesia has offered special incentives to investors wishing to invest in the energy field in the country. “I would ease issuance of exploration permit and give an additional incentive,” the country`s minister of energy and mineral resources Jero Wacik said at the 12th Gas Information Exchange (Gasex) meeting here on Tuesday.

The minister said door is opened widely for investment in the field of energy with regard to developing new and renewable energy sources in connection with increasing world demand for oil and gas. He said Indonesia has potential new and renewable energy sourc-

Investment Grows 27% in January-September 2012 www.tempo.co

East Java topped the list of domestic investment destinations with Rp12 trillion, followed by West Java Rp8.8 trillion, Jakarta 6.4 trillion, East Kalimantan Rp4.8 trillion and Central Java Rp4.7 trillion.

nvestment in Indonesia rose 27% in the first nine months of this year to Rp229.9 trillion from Rp181 trillion in the same period last year, according to the Investment Coordinating Board (BKPM). “The increase in investment during the first nine months of 2012 suggests that the investment climate in the country continues to improve, thus shoring up a degree of business certainty in the country,” BKPM Chief M. Chatib Basri said on Monday. He said the investment consisted of foreign investment worth Rp164.2 trillion and domestic investment worth Rp65.7 trillion. “Overall, investment projects in the January-September 2012 period were evenly distributed among areas outside Java, with the domestic investment showing an ever encouraging role,” he said. He said Rp9.1 trillion of the domestic investment went to nonmetal mineral industry, Rp8.6 trillion to mining industry, Rp7.7 trillion to food industry, Rp6.3 trillion to food crops and plantation business, and Rp5.8 trillion to basic metal, metal goods, mechinery and electronic industries. East Java topped the list of domestic investment destinations

more than Rp70 trillion peaking at Rp81.8 trillion in the third quarter. Realization of domestic investment plan until September already reached 85% of the whole target of Rp76.7 trillion and foreign investment projects 79.4% of the target of Rp206.8 trillion.

BKPM Chief M. Chatib Basri

The increase in investment during the first nine months of 2012 suggests that the investment climate in the country continues to improve, thus shoring up a degree of business certainty in the country.” with Rp12 trillion, followed by West Java Rp8.8 trillion, Jakarta 6.4 trillion, East Kalimantan Rp4.8 trillion and Central Java Rp4.7 trillion. Meanwhile, West Java remained the most attractive destination for foreign investment with $3.1 billion, followed by Jakarta $3 billion, Banten $1.8 billion, East Kalimantan $1.6 billion and East Java $1.4 billion. Singapore was listed as the biggest foreign investor in the year to September 2012 with a total investment of $3.5, followed

by Japan $1.8 billion, South Korea $1.3 billion, Britain $0.9 billion, and the United States $0.7 billion. According to the BKPM, $3.2 billion of the foreign investment was put in the mining sector, $2.5 billion in base chemical, chemical goods and pharmaceutical industries, $1.9 billion in the transportation, warehousing, and telecommunication sector, $1.3 billion in transportation equipment industry and $1.3 billion in base metal, metal goods, machinery and electronic industry.

Investment predicted to exceed $31 billion

Chatib said investments by both foreign and domestic investors are expected to reach at least Rp300 trillion ($31.5 billion) this year exceeding the target of Rp283.5 trillion. Increase in investments will be driven by growing imports of capital goods and investment commitments by a number of countries, Chatib said. “Fairly strong economic growth recorded by Indonesia amid the global financial woes would also contribute to boosting investment in the country,” he said. In the first three quarters of this year investments averaged

$1.5b Investment in Automotive Component Industry Expected Investors from East Asia are expected to invest $1.5 billion in automotive component industry in Indonesia next year, an official of the industry ministry said. “Next year, investment in tire I, II and III of automotive component industry from Japan, China and Taiwan are expected to reach $1.5 billion in 100 factories,” Budi Darmadi, the high technology industry director general said. Budi said the new investment will increase the number of automotive component factories in Indonesia from 1,400 units to 1,500 units in 2013. A strong growth has been recorded in investment in automotive component industry in Indonesia, boosted by growing demand for four wheelers in the country, he noted. The number of automotive component plants has increased from only 900 units four years earlier indicating rapid expansion of automotive market in the country, he said. The 100 new component factories will pro-

ed for research to turn out a car in new model.

Next year, investment in tire I, II and III of automotive component industry from Japan, China and Taiwan are expected to reach $1.5 billion in 100 factories.” Budi Darmadi The High Technology Industry Director General duce and supply components for automotive factories including engines, he said. He said the increase in the investment in the component sector is expected to be followed with more investment in research and development (R&D). R&D support is important as a car should have a lifespan of at least seven years, he said, adding three to four years are need-

This year, the country`s car production target is set at 940,000 units up from last year`s production of 894,178 units. The country`s car production capacity is forecast to rise 59% to 1.43 million units this year from 900,000 units last year. Five Japanese car makers are expected to complete work in their expansion projects this year, a report said. The five companies Toyota Motor Co., Suzuki Motor Co. Honda Motor Co. Ltd Daihatsu Motor Co. and Mitsubishi Motors Co. are investing a total of $2.22 billion for the capacity expansion this year, the report said. Toyota car maker which has the largest market share in the country plans to invest up to $534.4 million to increase its capacity by 120,000 units. The largest investment of $782.63 million is planned by Suzuki car maker to expand its annual capacity by 100,000 units.

Foreign investors still are more interested in base chemical, chemical and pharmaceutical industries, mining, transport, paper and paper product sectors. Domestic investors are more interested in non metal mineral, food, textile, food crop, plantation and construction industries.

es for development such as geothermal energy source which reaches 10,000 megawatt, hydro-power, solar and bio-mass energy sources. “In view of that we are inviting all companies that have capability in the energy field to invest in Indonesia. We are grateful we have almost all kinds of energy sources,” he said. Jero Wacik said if efforts to develop new and renewable energy sources failed the government would prioritize energy supplies for domestic needs but if they were successful exports of gas supply in the country would be continued. To investors wishing to invest in the energy sector the minister gave four conditions that they should meet, namely they have to grow the country`s economy, create jobs, alleviate poverty and safeguard the environment. On continuing gas exports by several exploration companies while domestic demand is increasing the minister said that the issue would be discussed with operators in the country. As a result, for an example, he said, the British Petroleum that conducts gas exploration in Papua has agreed to change the agreement. “Initially 100% of the exploration results are exported but after I negotiated with them about the increasing need of gas in the country, they are willing to allocate 40% of their production for meeting domestic needs,” he said.

S. Korea to Develop $50b Infrastructure Projects South Korea has agreed to develop eight infrastructure projects, worth a total of $50 billion, in Indonesia. The agreement was made at a Jeju Initiative meeting held between representatives from the two countries here on Friday. “The agreement is expected to boost economic cooperation between Indonesia and South Korea. The implementation of the projects will be supervised by the two countries’ representatives working at the Joint Secretariat, which was established in early 2012,” said Hatta Rajasa, the Coordinating Minister for Economic Affairs, who led the Indonesian delegation to the Jeju Initiative meeting.

“The eight projects agreed upon during the meeting involve: the construction of Batam island (Riau Island province)-Bintan bridge; the restoration of Ciliwung river (Jakarta province); the construction of railway for coal transportation from Bengkulu province to Muara Enim (South Sumatra).” Also the construction of Sunda Strait bridge connecting Sumatra and Java islands; the development of compressed natural gas (CNG); the construction of coal power plant in South Sumatra province; the opening of a new branch of Daewoo Shipbuilding and Marine Engineering (DSME); and the development of an agriculture-based multi-industry area, he added.

Developing Airports

South Korean investors including Samsung C&T have expressed keen interest in developing a number of airports in Indonesia, Tourism and Creative Economic Minister Mari Elka Pangestu said. They wanted to develop a number of airports in the country including those in Majalengka (West Java), Panimbang (Banten), and North Bali, she said here. The airports are among infrastructure projects offered at the Indonesian Tourism Investment Day (ITID) 2012 held at JW Marriot Hotel here on Monday. The other projects are the construction of toll roads and the operation of tourist resorts.

November 2012

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Profile

Suzuki: Providing Value-packed Products www.largus.fr

Suzuki develops “value-packed products” for the new generation and changeable lifestyles, constantly creating new technologies and applying them to the products with affluent imagination.

Pulogadung Plant (Service & Sales)

At this plant, the company has assembled a wide range of four-wheel vehicles such as Carry Extra, Carry Futura, Katana, and Forsa. Currently the plant only produces a few parts, because the assembling for four-wheel vehicles has largely moved to Tambun Plant II. The Pulogadung plant is now mostly used as a service and sales for Suzuki R4.

Tambun Plant I (Motorcycle Assembly)

Tambun Plant I was formerly known as PT Indohero Steel & Engineering Co. Tambun Plant I can absorb as much as 1,128 workers. It is located at Jl. Diponegoro Km 38.2, Bekasi, and its main activity is making components and assembling motorcycles.

uzuki Motor Corporation is a Japan-based automobile company and the world’s number 3 motorcycle manufacturer behind Honda and Yamaha. The company, via a global network, serves more than 190 countries. It builds its lineup on its own and through numerous subsidiaries and joint ventures overseas. The company started business in 1909 as Suzuki Loom Works; it was incorporated in 1920 and has since steadily grown and expanded. During the post-WW II period, the motorized bike ‘Power free’, which earned a good reputation, was followed by the 125cc motorcycle ‘Colleda’, and later by the pioneering ‘Suzulight’ lightweight car that helped bring Japan’s automotive revolution. Each of these was epoch-making in their own right as they were developed and manufactured by optimizing the most advanced technologies of that period. Today, constantly going forward to meet changing lifestyles, the Suzuki name is seen on a full range of motorcycles, automobiles, outboard motors and related products such as motorized wheelchairs and industrial equipment. The trademark is recognized by people throughout the world as a brand of quality products that offer both reliability and originality. Under the first statement of its mission statement “Develop products of superior value by focusing on the customer”, the Suzuki Group has always pursued providing ‘value-packed products’ since its foundation. Because value differs according to the times, country, and

Tambun Plant II (Car Assembly)

Suzuki Regina, a vision of a next-generation global compact car with excellent fuel efficiency and low emissions. under the slogan “Small cars for a big future”, the company will work forward to make small and environmentallyfriendly cars that are wanted by the customers, as well as to implement highly efficient, sound, and lean management by making things “smaller, fewer, lighter, shorter, and neater” in production, organization, facilities, parts, environment and other various fields.

lifestyle, it is fully determined to make such products for customers around the world. Also, under the slogan “Small cars for a big future”, the company will work forward to make small and environmentallyfriendly cars that are wanted by the customers, as well as to implement highly efficient, sound, and lean management by making things “smaller, fewer, lighter, shorter, and neater” in production, organization, facilities, parts, environment and other various fields. Suzuki develops “valuepacked products” for the new generation and changeable lifestyles, constantly creating new technologies and applying them to the products with affluent imagination. Applying this philosophy and approach to the R&D, the Suzuki teams cover a wide range of the latest advances

in such fields as energy, environmental, electronics, communication, information and control applications. All this R&D energy is devoted to the output of products that meet the challenge of the next generation. Suzuki works with a number of other automakers, namely Nissan, Mitsubishi, Mazda, and Volkswagen. Suzuki and Nissan supply each other with vehicles on an original-equipment-manufacturer (OEM) basis in Japan and elsewhere. Suzuki supplies Mazda and Mitsubishi Motors with vehicles on an OEM basis in Japan. Suzuki supplies Fiat and Opel with vehicles on an OEM basis in Europe. Suzuki also sources diesel engines from Fiat and Renault. Plus, Suzuki produces diesel engines in India using technologies from Fiat. Suzuki plans to continue working with automakers as independent

partners in ways that are mutually beneficial. Through such cooperation, Suzuki aims to make efficient use of the business resources and increase the sales and profits. In Indonesia, the production and sales of Suzuki is owned by PT Suzuki Indomobil Motor. The company was founded in 1970, originally under the banner of PT Indohero Steel & Engineering Co. which introduced its type A 100 & FR. PT Suzuki Indomobil Motor is a foreign investment company that incorporates the strength of five companies, namely PT Indohero Steel & Engineering Co., PT Indomobil Utama, PT. Suzuki Indonesia Manufacturing, PT Suzuki Engine Industry and PT First Chemical Industry. The five companies were merged with the approval of

the government through a letter of approval notification from Chairman of the Investment Coordinating Board (BKPN) No. 05/I/PMA/90 dated January 1, 1990, and celebrated as the date of the establishment of PT Indomobil Suzuki International, which operates in the components and assembly industry of Suzuki two-wheel and fourwheel vehicles. The company, which has about 2,400 employees, is not only manufacturing for Indonesia’s domestic market but also for more than 50 countries, including Malaysia, Thailand, Singapore, Brunei, Taiwan, Africa, Saudi Arabia, Chili, Australia, New Zealand with the main product is APV car. To support the government’s program for the provision of employment in Indonesia, PT Suzuki Indomobil Motor has

built a plant at Tambun, Bekasi, West Java, with a capacity of 1,200,000 units per year for motorcycles, creating employment for 2,100 people. It was followed by a new car factory with a capacity of 100,000 units per year with an investment of $60 million and absorbs 2,200 employees. The company’s assembly centers spread across five cities, and is divided into six locations:

Cakung Plant (Engine Assembly)

It produces various kinds of components and engine & transmission parts for motorcycles and cars through several processes: Shearing, Pressing, Welding, Assembling Engine bending, buffing, Machining Die Casting, and others by using advanced technology. Here is also assembled a wide range of equipment and Steering Transmission both for motorcycles and cars.

Tambun Plant II is a new project specifically for Suzuki four-wheel vehicles. Here, pressing, welding, painting and assembly of four-wheel vehicles in the Suzuki lineup is done using variety of advanced technology equipment such as conveyors, robots, and others. It is the largest in Southeast Asia today. Tambun Plant II has a strategic location: 50km from the Soekarno-Hatta airport and 26km from the headquarters of PT Suzuki Indomobil Motor in MT Haryono. In Tambun Plant II, they are manufacturing Futura, APV, Swift, Grand Vitara, Neo Baleno and other variants.

Spare Parts Plant (Sales Spare Parts)

To provide after sales service for Suzuki consumers, PT Suzuki Indomobil Motor moved the eight spare parts suppliers from Sunter to Spare Parts Plant in Jl. Diponegoro Km 38.2 Tambun-Bekasi (Jl. Toyo Giri). There are varieties of original spare parts for Suzuki vehicles, and various souvenirs of Suzuki.

Head Office (Wisma Indomobil MT Haryono)

The head office is located at Wisma Indomobil on Jl. MT Haryono, Kav. 8, Jakarta Timur and supported by 314 employees. The head office is the place of management and marketing system of PT Suzuki Indomobil Motor.

Osamu Suzuki: The Auto Industry’s Longest-serving Leader Osamu Suzuki spent 34 years as president and chief executive officer of Suzuki Motor Corporation. During this time he turned Suzuki into a global powerhouse by producing rugged, lowcost mini-cars for the less wealthy but more populated areas of the world, such as India, China, and Eastern Europe.

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Known as a fiscally conservative hands-on manager, Suzuki involved himself in nearly every aspect of the business and was often seen inspecting the company’s plants personally in search of cost-cutting measures. He once directed a factory to use white instead of yellow paint for floor lines, to save a few cents per can. Because of his close involvement, workers viewed him more as a father than a CEO. When Suzuki stepped down as president of the company in 2000, he stayed on as chairman. Suzuki was born in Gero, Gifu Prefecture, Japan, on January 30, 1930. He graduated from Japan’s Chuo University in 1953 and then found work at a local bank. Suzuki once said he was more of a loan shark than a loan officer, noting that he made loans that paid him 30 percent interest. His entry into the business world came courtesy of his arranged marriage to Shoko Suzuki, granddaughter of the man who had founded Suzuki. The founder had three daughters, and his eldest daughter

His entry into the business world came courtesy of his arranged marriage to Shoko Suzuki, granddaughter of the man who had founded Suzuki.

focused on capturing buyers in the world’s developing markets, such as India, China, and Hungary.

Osamu Suzuki had five daughters. With no male heirs in sight, Osamu Suzuki, once Osamu Matsuda, took his wife’s name, as is Japanese custom in this situation.

Suzuki began working at Suzuki in 1958, filling various management positions. He became the company’s fourth president in 1978 and turned Suzu-

ki, which was founded as a loom maker, into a major global manufacturer of small cars. Suzuki had a vision—instead of battling the industry giants, he

Suzuki built the company by working as a diplomat. He spent a lot of time traveling to other countries to forge partnerships, sometimes with government entities. Like a general, Suzuki marched across Indochina and the surrounding areas, setting up satellite assembly plants. In 1967 Suzuki opened a plant in

Thailand and by 1974 had set up shop in Indonesia, where he had negotiated a joint venture for parts manufacturing. In 1975 Suzuki opened a production plant in the Philippines. By 1980 Suzuki was in Australia and in 1982 opened a plant in Pakistan. In the early 1980s Suzuki formed an alliance with General Motors to help get its foot in the door to Europe and North America. By the early 2000s Suzuki was operating 60 plants in 31 countries while exporting its cars to 190 countries. In 2003 sales reached $16,815.7 million on the back of a one-year growth spurt of 33.7 percent. At the start of 2004 Suzuki was clearly Japan’s number-one minicar producer. Its motorcycle line was third, behind Honda and Yamaha, and its outboard marine engines enjoyed brisk sales as well. Like his company, Osamu Suzuki showed no signs of slowing down either, vowing to work until he died.

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November 2012

Pictorial Event Investors Visit to Tanjung Lesung The President Post/Rians Rivco

PT Banten West Java as developer of special economic zone in tourism sector Tanjung Lesung invited potential investors consisting of tourism property developers in Indonesia, as well as Chambers of Commerce of the ASEAN countries, China, Japan, United Arab Emirates, and the United Kingdom to visit Tanjung Lesung tourism area.

November 2012

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Pictorial Event Chairman of PATA International Visits Indonesia The President Post/Reza Ganesha

Chairman of PATA International Martin Craigs visited Indonesia to discuss the future of Indonesian tourism with the chairman of PATA Indonesia, SD Darmono. The discussion was held at PATA Indonesia’s office at Menara Batavia, Jakarta. During the meeting, Craigs explains his purpose come to Indonesia, which is to maximize the potentials of tourism in Indonesia. At the meeting, SD Darmono pointed out that Morotai Island can be used as a “New Singapore” as a transit trade route in Asia Pacific.

Breakfast Dialogue:

“Indonesia Middle Class — Challenges and Opportunities” The President Post/Reza Ganesha

The Financial Club Jakarta held a breakfast dialogue with Felia Salim, Vice CEO of PT Bank Negara Indonesia, as speaker. The dialogue themed “Indonesia Middle Class: Challenges and Opportunities.” At the dialogue, Felia stated, “the population of the middle class in Indonesia is increasing rapidly, but if it is not maintained well it will backfire.” She suggested the government to focus on the development of labor-intensive industries such as agriculture, manufacturing, creative industries to maintain middle class citizens.

Chinese Diaspora Dialogue at Lemhanas Lenhamnas with President Executive Club and the National University of Singapore (NUS) held an event entitled “The Potential of The Chinese Diaspora and the Benefits for South East Asia” at Lemhanas Building. Prof. Wang Gung WU was the speaker and Prof. Dr. Abdullah Dahana was the moderator at the event. The dialogue was attended by prominent leaders from Indonesia and Singapore. The President Post/Donny Martin

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November 2012

Pictorial Event Minister of Education and Culture Inaugurates Indonesia Berkibar The President Post/Heros Barasakti

Education and Culture Minister Mohammad Nuh attended the inauguration of Gerakan Indonesia Berkibar (GIB) at Monumen Arsip Nasional, West Jakarta, on October 28. The chairman of Indonesia Berkibar, Shafiq Lontoh, founder of Putera Sampoerna Foundation, Putera Sampoerna, and Deputy Minister of Religious Affairs Nassaruddin Umar also attended the event.

Czech National Day The celebration of the National Day of the Czech Republic was held at the Mandarin Oriental Hotel on October 24. The celebration was attended by ambassadors and prominent Indonesian leaders.

Inauguration of Family Room at Cipto Mangunkusumo Hospital The President Post/Rians Rivco

The President Post/Rians Rivco

Ceremony of PT Indopoly Swakarsa Industry First Shipment in Cikarang Dry Port The President Post/Heros Barasakti

PT Indopoly Swakarsa Industry (ISI) held the ceremony to receive the first shipment of production from Singapore in Cikarang Dry Port (CDP) on October 24. This is the first time ISI is engaged in exports and imports in CDP after the two sides agreed to cooperate. PT Indopoly Swakarsa Industry Tbk. manufactures flexible plastic packaging for consumer goods such as snacks, cigarettes, etc. Cipto Mangunkusumo Hospital (RSCM) in collaboration with the Foundation for Ronald Mcdonald House Charities presented Family Room as an effort to accelerate the healing process of pediatric patients, especially children suffering from serious diseases like cancer and tumors. Family Room is expected to contribute to the healing process of patients, and can be used for all family members who accompany patients to undergo a series of medical processes in RSCM.

MoU Signing of PT Moto-Techno Service Indonesia and Motoyama Eng. Works Ltd.

Microsoft Launches Windows 8 in Jakarta The President Post/Heros Barasakti

Microsoft officially launched Windows 8 at Taman Anggrek Mall, Jakarta, on October 26. Windows 8 is designed to be part of an ecosystem, alongside Windows Phone and Windows RT. Microsoft believes in this idea so strongly that it has made the Windows 8 user interface (formerly called Metro) the primary interface for Windows users. PCs with the new OS installed will boot into the Windows 8 interface; the OS offers no builtin way to set it to boot to the traditional Windows desktop. There are a variety of ways to purchase Windows 8. Typically, it will be available pre-installed on machines from stores and online outlets, but anyone with an older system running XP, Vista, or Windows 7 can also upgrade for $ 39.99. Microsoft is using an online installer to let users check compatibility with their systems and upgrade.

PT Moto-Techno Service Indonesia (MTSI) signed an MoU with Japanese company Motoyama Eng. Works Ltd. (Motoyama), the manufacturer of Motoyama control valves and safety valves. The event was held at the MTSI head office in Jababeka II Industrial Area, Cikarang. The MoU was signed by Haddy Timor, President Director of MTSI, and Toshiaki Shimpaku CEO Motoyama. With this MoU signing, MTSI becomes an authorized workshop of Motoyama, which provides Pressure Safety Valve and Control Valve services in accordance with the standards of the Motoyama. The President Post/Heros Barasakti

November 2012

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Pictorial Event ICCC Members Gathering The President Post/Reza Ganesha

On October 18, ICCC (Indonesia Canada Chamber of Commerce), held a members gathering event at the Mercantile Executive Club, Jakarta. The event was attended by members of the ICCC and also representatives of other Chambers of Commerce.

The President Post/Rians Rivco

Amcham Networking Cocktail Evening

BNI-REI Expo 2012 BNI-REI Expo 2012, a grand property exhibition, officially opened at the Jakarta Convention Center (JCC). Besides in Jakarta, the event was held simultaneously in 20 cities in Indonesia on October 20-28. The event was held by BNI in collaboration with Real Estate Indonesia (REI). In Jakarta, 125 property developers, among others Jababeka, Metland and Ciputra, and 135 property companies took part in the expo. The exhibition coincided with the momentum of high growth in the residential market, driven by the rise of the middle class as well as the number of interested expatriates. This exhibition was held at Bandung, Semarang, Surabaya, Serang, Aceh, Padang, Medang, Palembang, Lampung, Balikpapan, Makasar, etc. It is registered with the Indonesian Museum of Records (MURI) as the biggest exhibition in Indonesia.

AmCham (American Chambers) held a Networking Cocktail Evening on October 11 attended by its members. Cocktail Evening Networking is also a venue for businessmen and expatriates from the US and other countries to meet.

The President Post/Heros Barasakti

Indonesia Tourism Promotion Board (BPPI) organized an exhibition of Indonesian tourism and creative economy in Indonesia called Indonesia Tourism & Creative Economy Fair (ITCEF) 2012, which was held at the Jakarta Convention Centre, October 19-21. The ITCEF 2012 saw approximately 350 companies in tourism and creative economy, such as hotels, airlines, travel agencies, restaurants, souvenir handicrafts, and others took part. In addition to fairs and exhibitions, the event also held a uniform parade, cultural performances, table and bed setup completion and table top meeting that brought together sellers with around 100 buyers from Indonesia and abroad.

Indonesia Tourism & Creative Economy Fair (ITCEF) 2012 The President Post/Heros Barasakti

The President Post

LIVING

SECTION C November 2012 No. 38 www.thepresidentpost.com

Freezing of Human Eggs No Longer An Experimental Procedure The American Society for Reproductive Medicine has determined that the freezing and thawing of egg cells is now a proven method for preserving a woman’s ability to have children, removing the technique’s “experimental” label in a report released this week.

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he report, which is a review of a large number of studies analyzing the success of the procedure and its risks, finds that egg freezing and thawing before fertilization works just as well as the fresh eggs commonly used in in vitro fertilization. What’s more, a review of more than 900 births from frozen eggs found no increased risk of birth defects or DNA abnormalities. The technique has received plenty of attention as a way for women to put off childbearing until later in life-whether to pursue a career or because they have yet to find the right mate. But the ASRM continues to view the primary purpose of egg freezing to be the preservation of eggs for young women about to undergo chemotherapy or radiation, which can do serious damage to the ovaries. The report also lists other potential reasons a woman may wish to freeze her eggs. For couples attempting in vitro fertilization, for example, two studies have shown that freezing eggs

er success rate than eggs frozen during a woman’s 20s. Even still, the procedure is no sure thing: Only about half of the egg transfers lead to a successful pregnancy, and that number decreases with the age of the patient. Even as they remove the experimental label, the ASRM report has a strong message for doctors who encourage such procedures for their patients who undergo egg freezing to stop the clock: “Marketing this technology for the purpose of deferring childbearing may give women false hope and encourage women to delay childbearing,” the report says. LA TIMES can be useful in cases where the man is unable to produce sperm on the day of egg retrieval-either because of severe male infertility or because it’s just not his day. The ASRM also believes egg freezing is a good option for couples undergoing in vitro fertilization who want to improve their chances without freezing embry-

os, a practice some find ethically objectionable. For healthy women who choose to freeze their eggs simply to hit pause on their biological clocks, the ASRM report has a reminder: Make sure you do it while you’re young. Eggs frozen in a woman’s late 30s or early 40s, for example, have a far low-

How to Look and Feel Your Best for the Big Day www.ploughandharrowhotel.co.uk

As a bride-to-be, you invest huge amounts of time, energy and money to make your big day unforgettable. Unfortunately, all of the stress associated with planning a wedding can take its toll, and you may neglect your own well-being in the chaos. Inadequate sleep, poor diet and high levels of stress can leave you feeling and looking less than fabulous, but with a few healthy and sustainable adjustments, you can look forward to your walk down the aisle.

Gorgeous greens

Pressure to look perfect in your wedding photos may lead you to fad diets that can leave you starving and irritable, not to mention pallid and worn down. Instead of restrictive dieting, celebrity nutritionist and author Kimberly Snyder says eating the right foods will result in weight loss, as well as improve the look of skin, hair and nails. In “The Beauty Detox Solution,” Snyder encourages a plant-based diet that draws beautifying nutrients from completely natural sources. Green smoothies are a great way to incorporate more fruits and vegetables on the go, Snyder says, and she encourages all her clients to drink them.

Sleeping beauty

From venue visits to cake tastings to bridal showers, it might seem like there isn’t enough time to get all your wedding planning done. However, skimping on sleep can have serious physical and mental consequences. Getting enough rest so that you can get through your seemingly never-ending list can be difficult, but it’s vital to help you look and feel your best. For better, more restful sleep, try to stick to a bedtime routine at the same

time every night. Try not to eat or drink within an hour of going to sleep, and avoid electronic screens for 30 minutes before bed. You might enjoy a light activity - such as reading a book directly before going to sleep to help clear your mind. Lastly, ensure that you continue to make sleep a priority, even as the special day nears.

Post-workout glow

A wedding is a great motivator when it comes to working out, and perhaps you have already joined a gym or invested in a personal trainer to get in shape for the occasion. Even if you aren’t worried about losing weight, exercise can do great things for busy brides-to-be. Snyder, an experienced yogi who has practiced around the world, encourages her clients and readers to explore yoga for better mental and physical health. “Exercise releases stressfighting hormones, and yoga in particular can be a rejuvenating escape from the day’s hectic happenings, no matter how new you are to the practice,” Snyder says. “By combining strength-

building poses and attention to inner self, you can both tone your muscles and achieve mental bliss. Yoga is a great way to get fit and stay focused so you can walk down the aisle looking serene and stunning.”

Radiantly relaxed

Unbridled mental stress can quickly lead to physical consequences, and you don’t want to look haggard or tired on your special day. Physical activity, whether it’s a long run, exercise class, or short jog around the block, releases hormones that will boost your mood for hours. And don’t underestimate the power of the senses: lighting stress-relief aromatherapy candles, soaking in a warm bath, and even treating yourself to a massage can help you relax as the wedding day approaches. As you plan every detail of your wedding, remember to spend time on your own health and happiness. By paying attention to your physical and mental well-being throughout the planning process, you’re sure to be ready and radiant for your big day. LA TIMES

How Much Exercise Do I Really Need to Live Healthier? Years ago, I had an elderly patient I loved to visit. She had a huge personality, a quick mind (and tongue), and a sense of humor that would leave you gasping for air. She was just one of those people that others loved to spend time with. She also had the worst case of diabetes I’d ever encountered. She was taking huge doses of four types of insulin and needed to check her blood sugar six times a day. During one visit, I made a call to her doctor to discuss her steadily rising blood sugars. “I can’t put her on anything else,“ he said. “She’s going to have to exercise to help bring it down.” Well, for most folks, a little exercise wasn’t such a big deal. But for this gal, even getting to the bathroom was a chore. She was blind, severely obese, and had difficulty breathing to boot. I broke the news to her, and told her we’d do it together. We started small, mostly because we had to. We started with taking three steps every time I came to see her. We ventured outside on nice days to pull weeds out of her flowerbeds for 10 minutes. After a month, we added walking from the door of the bathroom to the toilet once

a day. The next month, we upped it to three times a day. After six months, she was walking down the hall three times a day in addition to her other exercise activities. It was enough to help keep her blood sugars from rising and we were able to lessen her insulin dosages a bit. Her doctor was ecstatic.

The Average Exercise Overhaul

So many times, the average person who wants to live healthier jumps into the exercise ring with both feet. They throw out all the junk food, vow to eat sprouts and drink water, and go to the gym everyday. The whole thing lasts for about two weeks, and then they find themselves overwhelmed, eating chips in front of the TV and yelling at Beach Body commercials.

Small Steps Equal Big Changes

The truth is, just like my patient, any small change you make to your exercise routine helps make you healthier. Start small and build on your habits as you become comfortable with each change. Here are some ideas to help you get started. • Park in the farthest corner of the parking lot at work or when you go shopping • Avoid the elevator and hit the stairs • Go for a walk on your lunch break • Play ball with your kids once a week for fifteen minutes • Use a mini-trampoline to do rebounding exercises while

you wait for the morning coffee to brew • Walk in place for one minute when you begin to feel fatigued at your desk • Engage in sexual activity once a week This principal applies to other healthy habits in your life as well. Try these small changes to start living healthier: • Replace one can of soda or tea with a glass of water every day • If you smoke, try smoking half a cigarette (instead of a full one) once during the day • Reach for some fruit or fresh veggies when tempted to snack on junk. If you’re still craving the junk an hour later, go ahead and give in – at least you got in some healthy nutrients • Go to bed ten minutes earlier than usual • Sit near a sunny window or go outside for five minutes every morning • Spend ten minutes alone, sitting quietly before going downstairs to start your day When you live healthier, you not only feel better, but you spend less time at the doctor’s office, take fewer medications, and save money on your life insurance premiums. LA TIMES

November 2012

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Health www.gentletigeracupuncture.com

Calorie Limits Don’t Extend Life Span But Might Keep You Healthier For 75 years, scientists have documented a curious fact: If rats and mice eat 30% to 40% fewer calories than normal, they live 15% to 40% longer than is typical for their species. The observation has offered humans hope that our own maximum life span could one day be extended, enabling people to live well past their 100th birthday. A new study of monkeys pours cold water on that notion — while at the same time offering some heartening health news. Among a colony of rhesus monkeys tracked for more than 20 years, animals whose calories were restricted to 30% below normal lived no longer, on average, than

Study: Acupuncture More Than Placebo Effect for Chronic Pain Acupuncture eases some kinds of chronic pain – and it’s not just a placebo effect at work, researchers who looked at data from nearly 18,000 patients found.

n estimated 3 million American adults get acupuncture treatments annually; still, there “remains considerable controversy as to its value,” the researchers wrote in a study published this week in the Archives of Internal Medicine. But they found that for back and neck pain, chronic headache, osteoarthritis and shoulder pain, acupuncture works

better than no treatment and better than “sham” acupuncture – done, for example, with needles inserted superficially or with needles that retract into the handles instead of going into the skin. There is no accepted mechanism for how the acupuncture works, the researchers said. Acupuncture is the practice of inserting and stimulating needles at specific spots on the body. The researchers noted that

their work might help people gain access to the treatment – given that “many clinicians would feel uncomfortable” referring patients to a treatment with only placebo effect. And health insurance reimbursements are less likely for therapies “that do not have specific effects.” The study, they said, provides “the most robust evidence to date that acupuncture is a reasonable referral option for patients with chronic pain.” LATimes

Stressful job? It Could be Worse If you still have a job in this economy, you’re supposed to feel grateful. But stress is what more people tend to feel at work these days, and a new study finds that for those who experience such strain on the job, the risk of developing heart disease increases by about 25%. That elevated heart attack risk, however, is less high than has been widely supposed, the authors of the new study wrote Thursday in the journal Neurology. While addressing workplace stress might help improve employees’ health, they said, there’s

lower-hanging fruit that would yield higher health benefits, including an expansion of efforts to get smokers to kick the habit. Job stress is defined by high demands at work and/or a worker’s low level of control over work hours and conditions. A 2007 survey by the American Psychological Assn. found that threequarters of Americans listed work as a significant source of stress, and more than half acknowledged that their productivity had suffered as a result of stress. The latest research is not a

fresh study but a compilation of existing studies, some published in medical journals, others not. It gathers evidence of the link between job stress and heart disease from studies conducted in Finland, Denmark, Sweden, Belgium, France, the Netherlands and Britain. Some published studies have assessed the increased cardiovascular toll of stress on the job at 40%. But when unpublished studies were taken into consideration, the contribution of job stress to cardiovascular risk started to shrink. LATimes

Coconut Water Making a Splash Every couple of years a food or beverage is crowned with what nutrition experts call a “health halo.” Some of the foods — wild salmon, blueberries, flax seeds — deserve it. But others gain status for no apparent reason. Acai berry, anyone? It’s not that the trendy food is unhealthful. It’s just that if you’re already eating a well-balanced diet it’s unnecessary. And possibly expensive. The latest entrant in this category: coconut water. Coconut water — the mildly sweet liquid from the center of young, green coconuts — has been popular in tropical areas since, well, as long as people have lived among coconut palm trees. In recent years it has found its way onto the shelves of mainstream grocery stores, often with fruit juice or sugar added. A 14-ounce serving can cost as much as $3.50. “Coconut water is a good source of potassium, but bananas and potatoes contain just as

much or even more, and they’re much less expensive,” says Joan Salge Blake, a registered dietitian and clinical associate professor of nutrition at Boston University. “With the potassium-rich whole foods you also get fiber and other nutrients, which is why I prefer them.” People can certainly eat the “meat” of the coconut for potassium and fiber, but they’ll also get 26 grams of saturated fat per cup. We depend on potassium for muscle function, and that’s why coconut water is marketed as an alternative to sports beverages. “In addition to potassium, coconut water contains other electrolytes that are lost during exercise,” says Chhandashri Bhattacharya, a chemist at Indiana University Southeast who made the presentation. Coconut water is also a low-glycemic food, meaning it won’t cause spikes

in blood sugar. Bhattacharya’s study echoed findings from a 2012 study in the Journal of the International Society of Sports Nutrition. The earlier study found that coconut water is as effective at rehydrating athletes after an intense workout as bottled water and sports beverages. “You can eat a couple of salty crackers to get what you need,” says Andrea N. Giancoli, a Los Angeles-based registered dietitian and spokeswoman for the Academy of Nutrition and Dietetics. The thing Giancoli wants everyone to remember is that there is not one food or drink that the human body needs above all others. “If you like it and you can afford it, there’s nothing wrong with coconut water, as long as you’re choosing a brand without added sugar,” she says. “The last thing we want people to do is find another way to drink calories. Los Angeles Times

monkeys whose eating was unrestricted, scientists found. But the diet did offer clear benefits, notably in warding off cancer.

imen of calorie restriction in hopes of postponing their appointment with the Grim Reaper.

It appears that “we are seeing a separation between what we call ‘health span’ from ‘life span’ — they are not hand in hand,” said Rafael de Cabo, an experimental gerontologist at the National Institute on Aging in Baltimore and senior author of the study. The report, published online Wednesday by the journal Nature, suggests that what has proven true for rodents and various other animals may not hold true for primates — humans included — at least under the conditions that were studied. The findings are likely to disappoint the hundreds of people in the U.S. who practice a strict reg-

But the results also have some researchers scratching their heads. The results are quite different from a 2009 study of monkeys in a colony in Wisconsin that found a clear survival edge from age-related diseases like diabetes, cancer and heart disease in calorie-restricted animals. That study also saw a trend toward longer life for monkeys on the diet when all causes of death were considered. All the monkeys received the same food, but the control animals could eat as much as they wanted during daylight hours. The rest were limited to only 70% of what they ate before the experiment began.

So far, no monkey in the calorie-restricted group has been diagnosed with cancer, De Cabo said, whereas six cases have occurred in the controls and are believed to have been the cause of death of five of them. That is in line with rodent studies, which have also found that calorie restriction seems to ward off cancer. Though the final word on whether calorie restriction extends life span is not in — nearly 50% of the younger monkeys are still alive — the authors wrote that they are unlikely to find a survival edge when all is said and done. But it’s still possible they will, De Cabo said, especially if the cancer difference grows starker. LATimes

Early Signs of Lung Cancer Could be Diagnosed by Simple Blood Test www.ryanspringer.com

Early signs of lung cancer could be diagnosed using a simple blood test, according a new discovery published by British scientists on Tuesday. Early detection of lung cancer has been shown to save lives, but available methods for screening atrisk people are either too costly or involve invasive procedures. Writing in the U.S. journal Proceedings of the National

Academy of Sciences, researchers at University of York reported that they found an altered form of a protein called Ciz1 was present in lung cancers, even when at a very early stage. “The Ciz1 protein is involved in cell growth. Altered forms of this protein are present in cancer cells, and one specific form is prevalent in lung cancers,” said Dr. Dawn Coverley from the University of York. “Surprisingly, this variantCiz1 somehow gets into the blood stream and once there appears to be very stable. This means

that by looking for variant Ciz1 in the blood we can pick out people who have small tumours in their lungs, without the need to take a biopsy or undergo surgery,” she added. She said the method will offer doctors an alternative way to test whether an abnormal growth is cancerous. For patients, it means many can avoid invasive diagnostic procedures. The team is now translating the research into a test suitable for use in hospital diagnostic laboratories.

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November 2012

Tourism Bali Building 60 New Hotels

TOURISM UPDATES RI, India Expect Direct Flights Boost Tourism Indonesia and India have expressed hope that direct flight services between the two countries will attract more Indian tourists to Indonesia and boost its tourism industry. “By providing direct flights, the number of tourists from India will increase,” Tourism and Creative Economy Ministry`s Director for International Tourism Promotion Nia Niscaya said at the ASEAN-India Business Seminar for Progress and Prosperity held here on Wednesday. “Tourists generally prefer direct flights, but currently they have to stop over first in Singapore or Malaysia,” Niscaya noted. The government has set a target of attracting 180,000 Indian visitors to Indonesia. According to Central Statistics Agency (BPS) data, the number of Indian visitors to Indonesia has increased by 7.93%, reaching 115,219 during January-August 2012, compared with 106,758 visitors in the same period last year.

Bali will have 10,466 hotel rooms in 2014 with 60 new hotel projects under construction, property research agency Knight Frank predicted. Supply of hotel rooms in Bali has continued to grow with 3,922 additional rooms in the second half of the year, Senior Associate Director of Knight Frank, Fakky Hidayat, said here Wednesday. In the next two years , the hotel rooms on the resort island would total 10,466 units, he added. In the first half of the year, 5-star hotels contributed the largest number or 37.7% to the total number of hotel rooms in Bali, Fakky said. The second largest number was contributed by 4-star hotel accounting for 31.3% followed by 3-star hotels accounting for 31%, he said. The largest number of the new hotels would be built in Kuta until 2014, he said. Four-star hotels are dominant in Seminyak, Sanur and Legian with rooms 691 units, 1,025 units and 617 units respectively.

ism sector in North Lombok district. “The construction of these floating docks is intended to facilitate small boats carrying tourists from the Bali Benoa harbour to the “Tiga Gili” attractions,” the head of Transportation, Communication and Information department of West Nusa Tenggara, Ridwan Syah said here on Thursday. “The floating docks will be constructed using modern technology and strong materials, such as wood, metal and concrete, while the bridge will be elastic, strong and able to adjust tides elevation,” he explained.

Ministry of Transportation to Build Floating Docks for Tourists The Ministry of Transportation has planned to build three floating docks under an initiative called “Tiga Gili” (three small islands), namely Gili Trawangan, Meno, and Gili Air, as part of efforts to support the tour-

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Gili Islands

To Tourists, Everyday is a New Adventure in Yotowawa www.pariwisatambd.com

Kisar has a lot to offer. Tourists visiting the island can go swimming, snorkeling, diving, spear fishing, or just stroll along the white sandy beaches of Kihar, Kiou, Nama, Malara, Tutu, Midau, Uhum, Ohinaran, Jawalan, Indeul, Lilit and many others.

he flight from East Nusa Tenggara provincial city of Kupang to Kisar island, also known as Yotowawa in Southwest Maluku district, is pretty uneventful. After 90 minutes in the air, the CASA 212 plane begins its descent into Purpura airport in Kisar, the island with metamorphic rocks encircled by a coral terrace. For a few minutes as the plane approaches the runway, some passengers stare out the window and look at beautiful beaches below along the coast of Kisar. The runway threshold of Purpura airport is on a small, 30-meter high cliff that drops away into the ocean and Uhum beach, dotted with rural huts. Johanes Tahinlaru, a local taxi driver, quoted some tourists as saying that Uhum beach is the most beautiful beach they have seen in Maluku, even in Indonesia. Kisar has a lot to offer. Tourists visiting the island can go swimming, snorkeling, diving, spear fishing, or just stroll along the white sandy beaches of Kihar, Kiou, Nama, Malara, Tutu, Midau, Uhum, Ohinaran, Jawalan, Indeul, Lilit and many others. They can also visit the ruins of Forth Vollenhove at Nama beach, Forth Delfthaven in Kaisama village, the ruins of Leklor old church built by the Dutch in 1777 and burned by fire in 1925, or climb the hills of Daitilu, Lekwa`in, Manheri, or Mauhara to see the panoramic beauty around the island. While climbing the hills of Lekwa`in, Manheri, and Mauhara on the south of the island,

visitors can find much to enjoy; the feel of gentle breezes, the awesome grandeur of the Timor strait, separating Kisar from Timor Leste and Australia, and the song of the weed birds, magpies, friar birds (locally known as burung koli), and others. The song of the friar birds is complex and comprises at least three elements, starting with a rapid low-pitched trill for a few seconds, and then a series of nasal, coarse, tonally complex sounds. Kisar is one of many islands in Southwest Maluku district and, in short, there is nothing here. “But of course, by nothing it means nothing as in the terms of not much development, but a lot of nature,” local culture and tourism office spokesman Anes Dahoklory says. No matter how remote this island is, Dahoklory notes that it is still developing its tourism sites. Meanwhile, Oirata village community figure Lucas Wedilen said this tiny and rocky island was nameless and deserted when, long ago, Lewenmali and Asamali first arrived from Tutukei Serwaru on Leti island. Being hungry one day, they thought of looking for something to eat. They travelled as far as Cape Loronwisi at the southeast tip of the island. But there, Lewenmali and Asamali did not see any food. The only living beings they found were unnumbered caterpillars. So, they “seselpain” (prayed) for the Creator: “If these verily are nothing but caterpillars from flies` eggs, the land here will be rotting when we come back after seven days; but if they are of any use, they shall have been transformed when we return.”

Nama Beach

When they returned to Loronwisi after seven days, those countless caterpillars had been transformed into thousands of “hihiyotowa” or goats. That was the reason why, from that time, this island had been called Yotowawa, until the arrival of a Dutch ship skippered by Jan Belen in 1665. The ship anchored near “Uwaraha Lauwar”, a pitch-black rock not far from Kihar Sere, a narrow beach overlooking Timor Leste on the south of Yotowawa. Jan Belen had no idea where he had anchored his ship, so he went to the shore of Kihar Sere and found Horsair and Mutasair, two indigenous people who were mending nets. Eager to know the name of the island, Jan Belen asked Horsair and Mutasair, but because of language problems they thought the Dutchman asked the name of the beach. So Horsair and Mutasair told Jan Belen that it was Kihar, but the Dutchman pronounced it “Kisar”, and from that time on the name of the is-

land has been popularly known as Kisar. The Dutch VOC in 1665 built its military base in Kisar, and from the European outpost on the island a relatively large Indo Eurasian community of “Mestizo from Kisar” developed and continues to this day, with surviving family names include Joostenz, Wouthuysen, Caffin, Lerrick, Peelman, Lander, Ruff, Bellmin, Belder, Coenrad, van Delsen, Schilling and Bakker. Wedilen added that tourists and visitors to the island are amazed at its traditional arts and culture. “Whether they are into spear fishing or just fishing, diving, swimming, snorkeling, or just strolling along the waters edge of its pristine beaches moments before the sunset, Yotowawa is the perfect escape,” he noted. According to Wedilen, Oirata village, during the past several years, has become a favorite and idyllic destination for foreign tourists who arrive by the MV Orion cruise ship from Darwin.

Due to the small population and remote location, the fish life and unspoilt beaches and coral reefs in Kisar are abundant. Kisar villagers “In small groups with local guides the tourists were invited to explore Kisar`s history, including the architectural remnants from the Dutch period over the past 400 years, and then ushered to Oirata village,” Wedilen said. Arriving at Oirata village, the tourists were entertained with the colorful and traditional Cakalele war dance, led by Nathaniel Haratilu. Besides, they also had the opportunity to see a number of activities, including “sopi” alcoholic drink distilling, brown sugar making from Koli palm trees, and Ikat weaving for sale. “Magnificent! We want to stay longer here in Oirata, Kisar, but unfortunately we have very limited time. But we enjoyed our visit

in Oirata, anyway,” said Marieke Egan of the Netherlands. Max McGuire, a tourist from Australia, also acknowledged that he was deeply impressed with the way the local residents made brown sugar and sopi from Koli palm trees that grow well on Kisar. Due to the small population and remote location, the fish life and unspoilt beaches and coral reefs in Kisar are abundant. Gabriel, an avid surfer, spear-fisher, and diver from Australia takes the opportunity to explore the beaches and the reefs in Kisar. “Soon upon arriving at the beach, I put on my fins, got my spear-gun ready, and swam out immediately,” Gabriel said. For him, the fish life and the color of both the fish and cor-

als are amazing. “Dip your head in and you will start seeing fish. A couple of undersized snapper swam over me and a shoal of smallish barracuda,” Gabriel says. While floating on the surface, he said he saw a big splash and it was the biggest barracuda he had ever seen. “I lined it up, waited for a broadside shot and squeezed the trigger, but then it disappeared into the dark blue depth,” he continued. Gabriel had a couple other fish down, but he was becoming cold so he decided to return to shore. “Everyday in Kisar holds new adventures and I am continually amazed at how awesome the Lord is for giving me this opportunity to visit Kisar island,” he says. Antara

Maluku’s Enigmatic Maupora Atoll Mentioned in local folktales and noted for years as the meeting point of the devil and black magic users worldwide, the Maupora atoll east of Romang island in Southwest Maluku district remains enigmatic. To date, Maupora is still considered sacred for it is a popular rendezvous for Satan and black magic users around the world, locally known as Suanggi. Hans Lekipera, a local resident of Romang island, says the south coast of the atoll is the place where the Suanggi, or those who practice black magic, have their party in a magnificent palace that is invisible to ordinary people.

“Once in a while, during a certain night with a new moon when people of the surrounding islands of Kisar, Leti and Moa see a bright light from the direction of Maupora atoll, it means the Suanggi or the black magic users around the world are having their party,” Lekipera noted. The beauty of Maupora atoll, with its large rocks and mangrove forest along its shoreline, in addition to evergreen and sandalwood trees on the hills, makes the island a perfect tourist destination in Southwest Maluku. “Maupora atoll can be developed as a location for marine tourism, a fishing area, diving, snorkeling, swimming and other

marine activities,” says Southwest Maluku District Culture and Tourism Office spokesman Anis Dahoklory. The island, with an area of 10,490 sq km, is accessible within three hours by boat from Kisar island and about 20 minutes by speedboat to the east from Jerusu beach on Romang mainland. The crystal clear water around the atoll also adds to the beauty of the beaches, and the sound of water splashing onto the shore in late afternoons will provide a memorable experience for visitors or tourists. Marine scientists from the Netherlands, Belgium, Indone-

The beauty of Maupora atoll, with its large rocks and mangrove forest along its shoreline, in addition to evergreen and sandalwood trees on the hills, makes the island a perfect tourist destination in Southwest Maluku.

sian Institute of Sciences (LIPI), and the Agency for Assessment and Application of Technology (BPPT) have discovered that the waters around Maupora atoll are rich with coral reefs and schools of ornamental fish in various sizes and colors.

“We hear a lot of mystical stories that remain enigmatic on this tiny Maupora atoll, and therefore we want to know more about them from the indigenous people of Roman and Kisar islands,” said Styn van Collie and Thom Gabriel of Belgium.

Also found in Maupora waters are highly valued mollusks, such as green turban shells, giant clams, top shells and also various sea cucumbers. “We are so amazed and feel as if we were in a small piece of paradise that we have never seen before in our expeditions,” said Dutch marine scientist Rob van Scheidel, as quoted by Fredy Leatemia of LIPI Ambon.

During their expedition in Maupora they discovered the underwater biodiversity of coral reefs. The natural and marine environment of Maupora is a matchless underwater paradise found nowhere else in the eastern part of Indonesia, though the area seems, so far, to have been ignored by the local government and officials from the tourism industry.

As an exotic atoll among 133 islands in Southwest Maluku, Maupora has a stunning underwater paradise to explore for domestic and foreign tourists, as well as marine lovers and scientists. Rows of tropical forest, mangrove forests, and sandalwood forests with high economic value that flourish naturally in Maupora are the state assets that need to be kept and preserved from illegal logging activities. “It is time for the central and MBD district governments to focus their attention on the development of Maupora as a tourist destination in the district,” Anis Dahoklory noted. Antara

November 2012

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Travel

The Wonders of the Green Turtles in Derawan Island Derawan offers beautiful and panoramic scenery. It also offers unique underwater scenery with the green turtles as the main attraction. Words and Photo by Iqbal Alaik

t was dark and there were only stars to light up the night. Our eyes eventually adapted to darkness slowly and caught the silhouettes of everything around us. The minimum light enabled us to see only vague shadows, but we noticed lights shining out from the sands that we just stepped on. It turned out that these lights were produced by planktons. My buddies, Nico and Satria, and I wanted to seize the moments when adult green turtles return to the land to lay eggs. Accompanied by a guide from the local BKSDA (Natural Resources Conservation Body), the four of us explored the beach around the Sangalaki Island, a breeding bed for green turtles or the biggest Chelonia mydas in Southeast Asia. Adult green turtles lay as much as dozens of eggs every night. The female green turtles are very sensitive to disruptions such as sounds, lights and movements. But once they lay eggs, no sound or movement can disrupt them. An adult green turtle with 1.5 meter in diameter emerged and started digging up a hole to lay

her eggs. We waited patiently for her to complete the process because the turtle dug the hole with her front legs very slowly. Suddenly the guide whispered to us, “Look, she’s ready to lay her eggs because she’s digging up a smaller hole with her hind legs.” The slimy white eggs of ping-pong balls size came out one by one from her behind. It was amazing to witness the process especially after we learned that only 1 out of 100 eggs would likely survive and make it as an adult. That really was a priceless moment! After she finished laying eggs, the mother covered the hole with sands to protect the eggs from preys such as weasels, lizards and humans. In their first days, after they successfully hatched and crawled out of the hole, they still had to watch out for other predators such as hawks that are ready to snatch them away. The young turtles which survived from being snatched by hawks still have to worry about sharks and other predators when they go to the sea. Predators seem to be following them all their lives because as they get older the turtles have to face threats from humans

that come in various forms such as being hunted for their shells and meat. They could also die from eating plastics which they mistaken for jelly fish. For the turtles, Sangalaki is their breeding bed and Derawan Island is their dynasty. For tourists, especially divers, Derawan Island is heaven. Sangalaki and several other islets are located in this group of islands which are under the administration of Berau district, East Kalimantan province. Derawan offers beautiful and panoramic scenery. It also offers unique underwater scenery with the green turtles as the main attraction. Here it’s not the divers who watch the turtles but it’s the turtles that like to watch the divers. The turtles gather in groups and seem to be watching the divers. It was an extraordinary view. The turtles are very big and they are not afraid to be approached. They seemed to be comfortable around humans. If the turtles felt disturbed they just simply swim away. If that happens, divers should not worry because there are always other turtles that pop up and replace the ones that swam away. The trip really satisfied us. I think other tourists, both local and foreign, also feel the same way.

The female green turtles are very sensitive to disruptions such as sounds, lights and movements. But once they lay eggs, no sound or movement can disrupt them.

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November 2012

Culture

The Quest to Revive Old Wisdom ANTARA

Benefiting local traditions and advanced technologies, the government plans to promote environmental-friendly tourism that will include activities related to energy efficiency, biodiversity preservation and green jobs.

sing their native wisdom, culturally-rich Indonesians have practiced environmental preservation and sustainable development activities since ancient times. According to the World Fish Center, Indonesia has the largest number of and longest enduring traditional community-based coastal resource management systems in Southeast Asia. Maluku Province, for instance, has local tradition called “Sasi Laut” - the local institution under which some fishing activities are regulated. “Sasi” is nested in traditional culture, called adat, which lays down the basic ethics and codes of conduct. And at Pemuteran village in West Bali, for example, the local community set up a foundation called Karang Lestari that assists in the preservation of coral reefs and turtle breeding. Benefiting local traditions and advanced technologies, the government plans to promote environmental-friendly tourism that will include activities related to energy efficiency, biodiversity preservation and green jobs. For that purpose, the tourism and creative economics ministry has made a Strategic Plan on Sustainable Tourism and Green Jobs which was officially released during a conference on sustainable tourism develop-

gan City Transportation, Tourism and Culture Office, Doyo Budi Wibowo, said recently. The assessment and consideration on the top 10 national tourism villages were based on the effective use of the National Program for Community Empowerment (PNPM) on tourism in 2011.

ment held in Bali, September 13, 2012. Deputy Minister of Tourism and Creative Economics Sapta Nirwandar during the launch of the strategic plan said the new program would revive the local traditions that could assist in promoting sustainable tourism activities. To do so, the tourism and creative economy ministry will establish cooperation with several international organizations, such as the World Tourism Organization (UNWTO) and the International Labor Organization (ILO). The G20 and Rio+20 have emphasized the importance of tourism in supporting sustainable development throughout the world, he added. At the G20 Summit which was held in Los Cabos, Mexico, June 18-19, 2012 it was explicitly stated in the Leaders` Declaration that tourism is a sector that significantly contributes to the economic growth of nations, along with job opportunities. And it is also the case with Indonesia which expects at least $9 billion to be contributed by international tourist arrivals to Indonesia`s foreign exchange this year. According to Central Bureau of Statistics (BPS) data, 3,876,310 foreign tourists visited Indonesia during the January-

To promote the country`s tourism industry, the government. among other things, has designated 10 rural areas as national tourism villages. One of the 10 tourism villages is Kampoeng Batik Kauman (Kauman Batik Village) in Pekalongan, Central Java. June 2012 period, an increase of 7.75% from the 3,597,632 tourists seen in the same period last year. Tourism and Creative Economy Minister Mari Elka Pangestu last August explained that the almost 8% rise in foreign tourist arrivals in Indonesia was “a good indication” because the figure was above the global average. “A growth of almost 8% is quite good amid the current crisis,” Mari pointed out. “The 8% growth in Indonesia is similar to the average increase in foreign tourist arrivals across the Asia-Pacific region, but higher than the global average of 5%,” Mari noted. She expressed optimism that Indonesia can achieve its target

of attracting 8 million tourists this year. During the first half of 2012, the five major suppliers of tourists to Indonesia were Singapore (with 615,390 tourists, up 1.1% from last year), Malaysia (557,413, up 10.1%), Australia (422,787, up 6.1%), China (305,303, up 33.5%), and Japan (200,093, up 5%). There was also a significant increase in the number of tourists coming from China, Egypt, Thailand, Saudi Arabia, the Philippines, Russia, and Bahrain. The ministry has also set a target of 245 million trips, for domestic tourists, who are expected to spend Rp171.5 trillion ($18 billion). “We also see a rise in the number of domestic tourists because the purchasing power of Indonesians has increased and their

spending is double that of foreign tourists,” Mari stated. In the first half of this year, domestic tourists spent a total of $9 billion. Last year, domestic tourists made 236,752 million trips, spending a total of Rp156.89 trillion. To promote the country`s tourism industry, the government. among other things, has designated 10 rural areas as national tourism villages. One of the 10 tourism villages is Kampoeng Batik Kauman (Kauman Batik Village) in Pekalongan, Central Java. “Kampoeng Batik Kauman has been included in the top ten national tourism villages by the Tourism and Creative Economy Ministry,” the head of Pekalon-

The other rural areas which have been named tourism villages are Bajiharjo (Gunung Kidul district in Yogyakarta), Banjarsari (Kulon Progo district in Yogyakarta), Dieng Kulon (Banjarnegara district in Central Java), Karangbanjar (Purbalingga district in Central Java), Bungus Selatan (Padang, West Sumatra), Pandai Sikek (Tanah Datar district, West Sumatra), Lampulo (Banda Aceh, Aceh Province), Karang Tengah (Bantul district in Yogyakarta) and Kembangarum (Sleman district in Yogyakarta). Another attraction expected to attract tourists to come to Indonesia is world-class golf courses. The country has 152 worldclass golf courses across its 33 provinces, according to Minister Pangestu. She said Indonesia has been known in the world as one of golf tourism destinations proven by increasing number of foreign tourists coming to a number of cities in the country to play golf such as Jakarta, Bandung, Bali and even Padang in West Sumatra. Further, Pangestu will promote 10 major Indonesian cities as tourist destinations during a series of Asia-Pacific Economic Cooperation (APEC) meetings to be hosted by Indonesia in October 2013.

“Besides the main event, we will have a series of international programs and meetings, including music and art shows and seminars,” she said recently. The 10 major cities were Lombok (West Nusa Tenggara), Medan (North Sumatra), Palembang (South Sumatra), Yogyakarta, Bandung (West Java), Jakarta, Manado (North Sulawesi), Makassar (South Sulawesi), Semarang (Central Java), and Surabaya (East Java). Although the APEC Summit itself will be held in Bali, the idea behind holding the other meetings in major cities outside the province is to promote the potential of the country as a whole in order to boost the tourism industry and creative economy, she explained. “This is a good opportunity for Indonesia,” Mari noted, adding that “When the APEC meeting will be held in Surabaya, for example, we will promote Mount Bromo and the Batu tourist resort, among other things.” In 2011, foreign tourist arrivals to Indonesia reached 7.65 million, up 9.24% from that in 2010. It generated foreign exchange earnings of $8.55 billion or an increased of 12.51% compared to the year 2010. Indonesia`s foreign tourist arrivals contributed 0.58% share of the world tourist arrival in 2006 and increased to 0.78% in 2011; 2.93% of Asia Pacific in 2006 and surged to 3.52% in 2011; and 9.17% of Southeast Asia in 2006 and up 9.92% in 2011 . Last year, tourism contributed 4.06% to the National GDP, 6.87% to the total national workforce or 7.44 million people, and Rp9.35 trillion to the indirect taxes.

Sayuta Chairman of PPI Delft

November 2012

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Property Indonesia’s Hospitality Potential Market Highest in Asia Indonesia showed strong demand. From the beginning of the year to June 2012, 17.5 million local and 5.2 million foreign tourists traveled through airports in Indonesia.

ones Lang LaSalle Hotels has noted Indonesia, Thailand, and Maldives as potential markets for the hospitality business in the Asia Pacific region. The great potential of these three countries is due to the increase in RevPAR (revenue per available room), the huge interest of investors, and high demand. “As the hospitality business in Asia and the world slowed down over the past year, investor sentiment remained strong in these three countries,” said Tom Oakden, Executive Vice Presi-

dent, Investment Sales, Jones Lang LaSalle Hotels. Indonesia showed strong demand. From the beginning of the year to June 2012, 17.5 million local and 5.2 million foreign tourists traveled through airports in Indonesia. Bali and Jakarta are still the magnets for foreign investors, yet they continue to look for other potential areas by taking the opportunities from the lack supply of hotels in certain areas that have unique characteristics and potentials for the development of property investment.

With a projected 20.5 million foreign tourists in 2012, Thailand is a strong hospitality market, despite recent natural disasters and political crises. Although the supplies of new hotel increase, the RevPAR in Bangkok continues to rise. In the meantime, resort areas such as Phuket exhibit potential growth of strong income. If the hospitality market was previously dominated by local players, Thailand has now become the main target of foreign investors. For example, there are five transactions for grand

hotels development in the last six months, including the development of Mövenpick Phuket. On the other hand, Maldives in the last three years became the favorite honeymoon spot, with most travelers coming from China. Maldives is one of the countries with the ADR (average daily rates), the highest in the world. Government regulations also facilitate foreign investment, one of which allows the lease period to 50 years.

Dubai Investor: I’m Comfortable when I Come to Indonesia A well-known property company from Dubai, Damac, plans to invest in Indonesia specifically in Special Economic Zone of tourism sector Tanjung Lesung. In a meeting with PT Banten West Java as a developer of Tanjung Lesung tourism area, Adil Taqi from Damac said the company is excited to invest in Indonesia, particularly in the Tanjung Lesung because this country has a huge potential. “Tanjung Lesung can be developed into major tourism attraction. This country has fantastic potential, “he said. Moreover, Tanjung Lesung is close to Jakarta that has the biggest local tourist potential. Many Jakartans who love to visit Bali or Singapore will be heading to Tanjung Lesung. So the local tourist potential is important to build a tourism spot. The infrastructure development of toll road construction to be completed in 2015 is also a major supporter of Tanjung Le-

that have partnership between government and private better than Indonesia. “They (government and private) work as one team to promote Indonesia. It’s pretty tough to distinguish which work for government, which is private,” said Adil Taqi.

Adil Taqi from Damac sung as an international tourism destination. Furthermore, Adil Taqi said that Indonesia is a country that has an excellent public-private partnership. Adil Taqi explained, “It’s part of my job to go to a lot of countries, I honestly have struggle to give an example of a country

He also praised the performance of Indonesian government, especially the Indonesian Ambassador to the UAE, Salman Al-Farisi who is excellent as a businessman when promoting Indonesia. Adil Taqi said, “the government promotes tourism that make sense, they don’t promote any opportunities. This makes investors feel safer.” All of the best efforts done by the government and private sector to offer investment opportunities in Indonesia have created a pleasant atmosphere for investors particularly to Adil Taqi. “I’m comfortable when I come to Indonesia, I’m happy to be here,” he said.

8 Mega Projects Launched in East Kalimantan President Susilo Bambang Yudhoyono inaugurated eight mega-projects in resource-rich East Kalimantan on Wednesday as part of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI). Two of the projects have already been completed: Kariangau Port in Balikpapan and Kalimarau Airport in Berau regency in the north part of the province. Still under construction are an expansion project for Sepinggan Airport in Balikpapan, twin bridges in Samarinda, East Kalimantan, an industrial estate

and an international port in East Kutai regency, a new airport for Samarinda and other industrial projects. Yudhoyono said that the eight projects had a combined price tag of Rp 19 trillion ($2 billion). East Kalimantan Governor Awang Faroek Ishak said that the recently completed Kalimarau Airport has opened with a 2,250 meter runway that can accommodate medium-range jet airliners such as the Boeing 737 aircraft. The airport, which is equipped with a 9,000-squaremeter terminal, has already re-

ceived its operating license from the Transportation Ministry, according to the governor. “Kalimarau Airport is important to boost tourism in Berau, including tohelp the success of the Sail Komodo-Derawan event in 2013,” Awang said. The airport was also designed as a transit hub for passengers bound for destinations in East Kalimantan’s northern regencies of Nunukan, Malinau, Tana Tidung, Bulungan and Tarakan, as well as Sebatik regency on Sebatik Island, which is divided between Indonesia and Malaysia, according to Awang.

East Kalimantan is the major business hub for Kalimantan, an island that is known for its huge coal, gas, oil palm and oil resources. The boom in coal businesses in the past 10 years has positioned the island as the largest contributor to the middle-class population in Indonesia, according to the Central Statistics Agency (BPS). These developments could also see the residential market in the region take off as well with more tourists and businesses likely to start heading into the region.

Jakarta Luxury Real Estate Market Increases 14% Singapore has the 13th most expensive luxury real estate market in the world, according to The Wealth Report 2012, compiled by Knight Frank. According to the report, prime property in the Lion City can fetch $25,600 per sqm, or $3,007 per sqft. Yet these prices do not even represent the peak in Singapore’s luxury markets: the report noted that prices of luxury property have decreased by 4.7% in the third quarter of 2011 from the year before. The report attributed the fall party to fears over a property crash in China in 2011.

Price falls were registered in Singapore, Sydney and Shanghai, which were the fastest growers in the previous survey. Hong Kong came in fourth place with an average price of $47,500 per sqm, while apartments in Hong Kong were ranked tenth with an average price of $28,300 per sqm. “We shouldn’t be overly surprised that prices are falling in some of Asia’s prime markets. The falls follow huge booms over the past two years,” said Liam Bailey, Head of Residential Research at Knight Frank.

However, the fall in luxury home prices are not uniform across Asia. Jakarta saw prices increase by 14% in 2011 from the year before, as a result of a strong domestic economy with steady growth. According to Asia One, a range of uncertainties including economic deleveraging in the West and political uncertainties in China are expected to cause growing volatility in the luxury property market in the coming year. Monaco topped The Wealth Report, commanding an average $58,300 per sqm.

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November 2012

Technology

Apple introduces iPad Mini, New Fourth Generation iPad, All-New iMac and 13-inch MacBook Pro 13-inch MacBook Pro with Retina Display The new MacBook Pro packs more than 4 million pixels into its 13-inch Retina display, nearly twice the number of pixels in an HD television. At 227 pixels per inch, the Retina display’s pixel density is so high the human eye is unable to distinguish individual pixels at a normal viewing distance, so images look sharp and text looks like it does on the printed page. With four times the pixels of the current 13-inch MacBook Pro, you can view and edit video in pixel-accurate 1080p and see a new level of detail in high resolution images. The 13-inch Retina display uses IPS technology for a 178-degree wide viewing angle, and has 75 percent less reflection and 28 percent higher contrast than the current generation.

New Fourth Generation iPad with Retina Display The fourth generation iPad featuring a gorgeous 9.7-inch Retina™ display, new Apple-designed A6X chip, FaceTime HD camera and ultrafast wireless performance. Both iPad mini and fourth generation iPad come with iOS 6, the world’s most advanced mobile operating system with over 200 new features.

iPad Mini

All-New iMac

iPad mini, a completely new iPad design that is 23 percent thinner and 53 percent lighter than the third generation iPad.

Redesigned from the inside out, the new iMac packs high-performance technology into an aluminum and glass enclosure with up to 40 percent less volume than its predecessor and an edge that measure just 5 mm thin. Built with an unprecedented level of fit and finish, the new iMac delivers an amazing desktop experience in a gorgeous design.

“iPad mini is every inch an iPad. With its gorgeous 7.9-inch display, iPad mini features the same number of pixels as the original iPad and iPad 2, so you can run more than 275,000 apps designed specifically for iPad,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing.

The new iMac also features a completely reengineered display that reduces reflection by 75 percent while maintaining brilliant color and contrast. In the new design, the cover glass is fully laminated to the LCD and an anti-reflective coating is applied using a highprecision plasma deposition process. Every iMac display is individually color calibrated using an advanced spectroradiometer.

“iPad mini is as thin as a pencil and as light as a pad of paper, yet packs a fast A5 chip, FaceTime HD and 5 megapixel iSight cameras and ultrafast wireless – all while delivering up to 10 hours of battery life.”

Google Unveils New Nexus Smartphone and Tablets Google unveiled three, new Nexus devices - one smartphone and two tablets. The LG Nexus 4 smartphone features a 4.7-inch, 1,280-by768 display with 320 pixels per inch. Google said it has “reinvented the photo experience” with Photo Sphere, which lets you create 360-degree images that can be shared on Google+ and Google Maps. It will run a Qualcomm Snapdragon S4 Pro processor and features 2GB of RAM. There’s an 8-megapixel camera on the back and a 1.2megapixel camera on the front.

New Nexus Tablets

Nexus 7

Nexus 4

Google’s existing Nexus 7 tablet is getting a storage boost. The 16GB is now $ 199 and a 32GB is $ 249; no more 8GB Nexus 7.

Nexus 10 The search giant said its tablet will also support HSPA+ mobile data, but not 4G LTE. A 32GB HSPA+ version, which will work on AT&T and T-Mobile in the U.S., will run $ 299. Android chief Andy Rubin told The Verge that Google opted to forego 4G LTE because adding it would drive up the cost and drain the battery. The new, larger Samsung Nexus 10, meanwhile, boasts a 10-inch, 2,560-by-1,600 display with 330 pixels per inch. “That’s over 4 million pixels right in your hands,” Google said. Google promised up to nine hours of video playback and 500 hours of standby time. The Nexus 10 will run a dual-core A15

chip, there’s a 5-megapixel rearfacing camera and a 1.9-megapixel front-facing camera. It supports Wi-Fi, Bluetooth, and NFC. There’s Micro USB, magnetic pogo pin charger, Micro HDMI, and a 3.5mm headphone jack. “But what makes Nexus 10 unique is that it’s the first truly shareable tablet,” Google said. “With Android 4.2, you can add multiple users and switch between them instantly right from the lockscreen. We believe that everyone should have quick and easy access to their own stuff email, apps, bookmarks, and more.” Hopefully all of them will be coming soon to Indonesia, so which one will you choose?

But what makes Nexus 10 unique is that it’s the first truly shareable tablet.”

November 2012

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Golf

Jakarta Royale Golf Club: Asia’s Great New Golf Course PHOTOS: www.royalejakarta.com

The combination of beautiful purple carpets of exotic plants and the calming beauty of the lake waters promises visual serenity. All of this results in a new and exclusive golfing experience. It is simply a beautiful and challenging golf course within the heart of Jakarta city.

akarta Royale Golf Club is known as one of five great new golf courses in Asia. The club’s golf course was designed by Bob Moore Jr. & JMP Group. Its green paradise concept of expansive meadows is decorated with Sea Isle Supreme Paspalum in every area of its 27 holes. The combination of beautiful purple carpets of exotic plants and the calming beauty of the lake waters promises visual serenity. All of this results in a new and exclusive golfing experience. It is simply a beautiful and challenging golf course within the heart of Jakarta city. Located just 15 minutes from Central Jakarta, Royale Jakarta Golf Club is accessible through the city toll road, only 700 meters from Pondok Gede toll exit. A comfortable and strategic location makes travel close and easy for a round of golf. For players looking for a challenge in the great game of golf, Royale Jakarta Golf Club answers that and more. Golfers will not only enjoy the International Championship style concept but will also be provided with beautiful lush greens and fairways, panoramic views of Mount Salak and Mount Gede.

Jakarta Royal Golf Course has 27 holes, three sets of beautiful nine holes (the North, the South and the West) with various levels of difficulty.

Jakarta Royal Golf Course has 27 holes, three sets of beautiful nine holes (the North, the South and the West) with various levels of difficulty. This golf course also uses the latest grass type of Sea Isle Supreme Paspalum, which is ideal for tees, fairways and greens. Royale Jakarta Golf Club is the first club in Asia to use the latest grass type of Sea Isle Supreme Paspalum. This kind of grass is is being planted in whole grass areas from tee box, rough and green. With Sea Isle Supreme

Paspalum, golfers can generate consistent speed in accordance with international standards. Not only a sophisticated golf course, Jakarta Royale Golf Club also provides facilities like spacious locker rooms, sauna & whirlpool, spa massage, exclusive Founder’s Lounge, Royale Suite, VIP rooms, Royale Palace oriental cuisine, international Pro Shop, luxurious Function Room, international tournament-standard Practice Range – 24 lanes with Short Game area and Golf Carts.

Royale Jakarta Golf Club is the first club in Asia to use the latest grass type of Sea Isle Supreme Paspalum, which is ideal for tees, fairways and greens.