The President Post 39th Edition by The President Post

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December 2012 No. 39 www.thepresidentpost.com

INTERNATIONAL

PROFILE

This collection would encourage the international community to get acquainted with the diversity and richness of Indonesian culture. – Page A7

Indonesia to host the Red Bull Air Race World Championship—that is the goal of Jeffrey Adrian, a senior pilot who is now realizing his passion to become an athlete of extreme sports called air racing.. – Page B4

Collection of Borobudur Temple Relief Back on Display at the Vatican Museum

IDR 20,000

2012

Jeffrey Adrian: I Am Expensive Since I Have No Rivals

Highlights PAGE C1

Mahfud MD’s Leadership Underscores Candor and Bluntness The President Post/Heros Barasakti

JAKARTA — After dedicating his time at the Constitutional Court (MK) for two periods, Chief Justice Mahfud MD said he has no interest to continue his leadership when his term ends in April 2013.

is statement comes as the public increasingly sees his candor and bluntness in responding to every case as an attitude of a clean public figure with a keen and high sense of commitment. As the MK leader, Mahfud once said that he would drag any MK judge involved in graft to the Corruption Eradication Commission (KPK) and hand down the verdict himself. He also said that he would resign if the judge is found guilty of graft. Those statements reflected Mahfud’s firm and modest character. Some of Mahfud’s decisions through MK that drew the public’s attention is the disbandment of BP Migas. MK accepted some of the requests made by several Muslim intellectuals, who challenged Law No. 22/2001 on oil and gas. In its ruling, MK stated that the existence of the state oil and gas regulator BP Migas violated the 1945 Constitution. "We accepted some of the applicants’ request," said Mahfud when he read out MK’s verdict in an open court at the MK building last month. As the MK leader, Mahfud once said that he would drag any MK judge involved in graft to the Corruption Eradication Commission (KPK) and hand down the verdict himself. He also said that he would resign if the judge is found guilty of graft. Those statements reflected Mahfud’s firm and modest character.

MK annulled the articles that stated that oil and gas matters should be handed over to BP Mi-

Economist Faisal Basri Urges Strengthening of Financial Sector The general global economic condition in 2012 will be closed marked by improvement efforts, especially in crisis-hit countries in Europe, and next year the economy is projected to be better despite occasional turbulences, according to a prominent economist. “In general, the global economy in 2013 is projected to grow by 3.36%, driven by Asia Pacific countries because the growth in half of Europe will still be negative,” said Faisal Basri during the 2013 Economic Prediction event. Faisal projected that Indonesia would see a much better economic condition, almost matching those of other Asian countries. Foreign investors will also show interest in Indonesia’s economic development. But Indonesia still needs to pay attention to several issues as its foreign exchange is still low, below China (the country with the highest figure), Taiwan, Thailand, Philippines, Malaysia, South Korea. But, Indonesia is also considered high due to an increase in direct investment. Reports from UNCTAD and World Investment showed that this year Indonesia is number four in terms of investment destination, after China, United States, and India. However, Indonesia still faces several problems that need to be addressed such as infrastructure, legal certainties and political stability, including labor protests, he said.

Meanwhile, Indonesia’s GDP growth trend continues to increase while the GDP trends of other countries, including the United States, are declining. ”Indonesia’s main economic growth engine is domestic consumption. The second growth engine is investment that grew by two digits. Unfortunately, the government’s consumption is minus,” said Faisal. Faisal lamented the government’s lack of contribution in the country’s economy as reflected in the government’s minus consumption spending. “Our government’s spending is only better than that of Bangladesh and Nigeria. Its public investment is also the lowest in Asia. So, improvement in the government sector must continue to take place. With improvements, our economy will be much better,” he explained. Faisal also predicted that Indonesia’s economy in 2013 will grow by 6.8%. IMF, the Word Bank, and The Economist also projected the same growth for Indonesia. “Once Indonesia’s economic growth becomes phenomenal, those international economic institutions will start to pay attention on Indonesia,” said Faisal. Indonesia’s main engine growth is growing public consumption, he said, adding that growth is also followed by an increase in the number of middle-class in-

come people that reaches 50 million. The country’s productive human resources have also reached two-thirds of the entire population. The GDP per capita of the middle-class society has hit the $3,000 mark, which enabled them to help spur the economic growth. But Faisal warned Indonesia not to get easily contented with its more than 6% economic growth because Indonesia has lagged too long, by more than 10 years, behind from other countries. Faisal concluded that to maintain strong and fast economic growth, the heart of the economy, which is the financial sector, has to be strengthened.

“Our financial sector is still weak. Our financial development index is at number 51 out of 60 countries. Indonesia’s banking score has only reached 2.69 from the scale of 1-7. This is very low. Bonds and obligations in circulation only make up 13% of the GDP and that’s still too low, only slightly higher than Vietnam,” he said.

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gas as the representative of the government. "BP Migas is unconstitutional and MK is entitled to decide on something that’s not constitutional," said Mahfud. During the transition period of the disbandment of BP Migas, MK ordered the government and the related ministry to take over control until a new organ is established. "All of BP Migas’s duties and rights will be conducted by the government or the state-owned enterprise that had been appointed," he said. Muhammadiyah Chairman Din Syamsudddin, former PBNU Chairman Hasyim Muzadi, MUI Chairman Amidhan, former Manpower Minister Fahmi Idris and Muslim politician Ali Mochtar Ngabalin and 12 Islamic organizations challenged the oil and gas law. They said that the law catered to the interest of foreigners and disrespect the state’s sovereignty. In a roundtable discussion held by President University at the Polo Club Menara Batavia, Jakarta, Mahfud MD said that one of MK’s jobs is to review laws. “One of MK’s functions is to revoke the law, if requested,” said Mahfud.

He also disclosed that the MK is considered as one of the top in the world by foreigners, on a par with that of European countriesm Japan and South Korea. The topic discussed during the roundtable discussion was “The Constitutional Court’s Function and Legal Problems that Arise Ahead of the 2014 Indonesian General Elections”. The discussion was opened by Jababeka President Director SD Darmono and attended by President University Foundation Chairman Juwono Sudarsono, Ermaya Suradinata, General Djoko Santoso, Kalbe Farma founder Boenjamin Setiawan, President University Rector Chandra Setiawan, AS Hikam, businessmen, members of the media and academicians. The discussion also touched on Mahfud’s willingness to be nominated as a presidential candidate in 2014. Polling by the Indonesian Survey Institute (LSI) found Mahfud to be the most popular presidential candidate. AS Hikam, who is the former State Minister for Research and Technology during President Abdurrahman Wahid’s administration asked: “Is Pak Mahfud serious about becoming the 2014 presidential candidate?”

I don’t have the nerve to even seriously consider it yet, but I’ll think about it later. But I will not push myself. Surely I’m delighted to get such appreciation or the chance to become president, but we should be aware of our capacity.” Mahfud answered casually by saying, “I don’t have the nerve to even seriously consider it yet, but I’ll think about it later. But I will not push myself. Surely I’m delighted to get such appreciation or the chance to become president, but we should be aware of our capacity.” The assessment on Mahfud’s worthiness to run for president was based on his traits, which are deemed to have met the criteria for a presidential candidate for 2014, such as credibility, capability and acceptability. Many believe that Mahfud could still do many things that the public expects him to do, not only in MK.

Jababeka One of Forbes Indonesia’s 50 Best Forbes Indonesia has named 50 best listed companies for their outstanding performances. “We are very happy and honored to give this award to 50 best companies in Indonesia. This event shows that world-class companies have emerged in Indonesia and it also demonstrates that the country has become increasingly important in the global business community,” said Chief Editorial Advisor Forbes Indonesia Justin Doebele at the Ritz Carlton Hotel, Pacific Place, Jakarta last month. Jababeka Industrial Area (KIJA) is one of the listed companies that made the list with income of $126 million and profit of $36 million. KIJA is involved in the development and management of an industrial area in Cikarang, West Java, including its supporting facilities, such as houses, apartments, office buildings, shopping centers, infrastructure and others. The company was established in 1989, it has been listed on the Jakarta Stock Exchange and the Surabaya Stock Exchange since 1994, making it the first industrial area developer to go public in Indonesia. Forbes Indonesia (FI) conducted a strict selection process on the candidates by looking at their long term performances that included their income growth, profits, and the yields they gave to the shareholders. To be included in the list, a company must have strong general performance as seen from several indicators and long term prospects.

Jababeka Industrial Area (KIJA) is one of the listed companies that made the list with income of $126 million and profit of $36 million. Chief Economic Minister Hatta Rajasa who attended the event said, "These fifty companies are expected to push Indonesian companies to perform better in the future.” Hatta hoped that the companies could compete in the global scene. Other companies that made the list of 50 best listed companies are Lippo Cikarang, BW Plantation, Ace Hardware Indonesia, AKR Corporindo, Maskapai Reasuransi Indonesia, Alam Sutera Realty, Mayora Indah, Sinar Mas Multiartha, Surya Semesta Internusa, Elang Mahkota Teknologi, Eterindo Wahanatama, Indomobil Sukses International, Jasuindo Tiga Perkasa. Also, Bhakti Investama, Multi Bintang Indonesia, Resource Alam Indonesia, United Tractors, Bank Himpunan Saudara 1906,

Ekadharma International, Intraco Penta, Sarana Menara Nusantara, Tower Bersama Infrastructure, Wijaya Karya, Hexindo Adiperkasa, Sumber Alfaria Trijaya, Surya Citra Media, Colorpak Indonesia, Eksploitasi Energi Indonesia. The list also includes Holcim Indonesia, Nippon Indosari Corpindo, Pioneerindo Gourmet International, Sentul City, Trada Maritime, Agung Podomoro Land, Asuransi Multi Artha Guna, Bank Windu Kentjana International, Bumi Serpong Damai, Catur Sentosa Adiprama, Charoen Pokphand Indonesia, Fast Food Indonesia, Indospring, Jaya Real Property, Malindo Feedmill, Trikomsel Oke, ABM Investama, Atlas Resources, Bank Tabungan Pensiunan Nasional, Chandra Asri Petrochemical, and Japfa Comfeed Indonesia.

December 2012

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Opinion

How to Choose the Nation’s Best Leader If general elections cannot be held openly, honestly and fairly, don’t expect to find any leader that can solve the country’s serious problems. If only the fourth principle of the country’s philosophy Pancasila is implemented properly, we will no longer have leaders who only represent their own political parties’ interests.

www.mylifeatail.com

Hopes for the future

By Bambang Sulistomo

There are still rays of hopes for all of us here because the people’s sovereignty remains intact thanks to the media’s role. We have witnessed the media’s influence over the recent dispute between the Police and the KPK regarding the authority to investigate several major cases, and saw the president finally giving the proper response.

very country wants to be led by its best person because the people want their rights to be fulfilled as well as to meet their obligations accordingly. There are several key points to measure whether or not a leader can be accepted by the people or whether the leader can gain the people’s trust.

Many countries claim to be democratic but their people don’t enjoy sovereignty and as such are unable to fully supervise irregularities committed by the rulers. This is mostly due to the various gaps mentioned previously. So, what hopes do the people have if an unfair general election took place? There have to be joint efforts to improve the education and political awareness of the people through the media, conducted by a group of people who still believe in the future of this country.

The essence of power

Power can be obtained through several ways: through a general election, secondly by force, and third by appointment based on family background. A leader who holds power in a country should be on the basis of legality and mandated by the people. Without the people’s mandate, a ruler will not be able to make any plans, rule, regulate or get anything done. First: in a country that adopts the principle that power is from and for the people, a general election is the process that must be taken to find the best leader. But in the political history of countries in this world, only open and fair general elections are accepted open-heartedly by the people. Second: a power struggle through the use of weapons usually occurrs when the level of non-satisfaction, disappointment of the people or a group of people, such as the military, is high. Power seized by force will initially be run authoritatively. But the authoritarian ruler usually resorts to dishonest and unfair general elections when opposition arises and when facing demand for a general election. Third: appointment of a lead-

er based on family background usually occurs in a country that adopts a monarchic system or in a dynasty of gangsters of popular mafia groups. There are monarchies that hold absolute power and there are monarchies whose authorities are limited by the constitution. Generally, modern countries that adopt a monarchic system regulate and limit the monarchies’ power with the constitution. They usually combine the constitutional monarchic system with the monarchy’s authority and the authority to regulate the people’s sovereign rights and obligations. Gangster groups have influence and power but only limited to its own group and

TH E

they have no valid power and influence over the people outside their circles.

People’s sovereignty and general election:

Since its independence, Indonesia had actually chosen and formed a government that adopted the principle of and from the people and for the sovereignty of the people. However, during the New Order the rulers implemented authority and power according to their own whims. In any part of this world, any power that’s run not based on an open, honest, and fair general election will not earn legality, recognition, support and compliance from the people.

S P I RI T

We are now about to enter the general and presidential elections in 2014. And like any country in the world, general elections are prone to frauds, especially when social gaps are still wide in education, law, economic sectors, prosperity and information and communications. The people want an open, honest and fair general election but with the wide gaps in various sectors, the rich will likely enjoy every possibility and have the ability to engineer an unfair general election. Frauds and dishonesty usually begun at the start of the general election process, from the campaign period until the process of vote counting. The initial goal of the general election is to find a leader want-

Many government and parliament buildings both in the capital city and in the regions close their doors to supervision by placing heavy security. They refuse to meet for an exchange of ideas or to listen to the people’s problems. This kind if attitude often leads to anarchy because the people aren’t satisfied and become restless.

ed by the people. So, what’s going to happen to a general election which was run not based on openness, honesty and fairness? We can predict that the results will be as follows: we’ll have leaders in parliament and in government who will not live up to the people’s expectations. But what’s more dangerous is that unfair elections could result in a group of unfit leaders and people’s representatives holding absolute power over the people. An unfair general election will not produce leaders that come together or share the same vision about certain policies and therefore they will not be able to solve the country’s problems. Thus, they will not get the support from the people.

If general elections cannot be held openly, honestly and fairly, don’t expect to find any leader that can solve the country’s serious problems. If only the fourth principle of the country’s philosophy Pancasila is implemented properly, we will no longer have leaders who only represent their own political parties’ interests.

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December 2012

Opinion

ASEAN Without Timor Leste: State Without Sovereignty “One Vision, One Identity, One Community” for 2015 would be meaningless if Timor Leste, which is geographically part of Southeast Asia is still not a member of the ASEAN by 2015. By Julio Gil da Silva Guterres, B.A.

hen will Timor Leste become the member of the Southeast Asian o r g a n i z a t i o n? This writing is not only to answer that question but also to analyze ASEAN’s visions in the past, present and future. ASEAN (Association of Southeast Asian Nations) is a geopolitical and economic organization established on 8 August 1967 in Bangkok, Thailand. ASEAN was established through the Bangkok Declaration which was initiated by Indonesia, Malaysia, Philippines, Singapore and Thailand. Indonesia was represented by Adam Malik, Philippines by Narciso R. Ramos, Malaysia by Tun Abdul Razak, Singapore by S. Rajaratman, and Thailand by Thanat Khoman. The Bangkok Declaration contained five important points: (1) To accelerate economic growth, social progress and cultural development in the Southeast Asian region; (2) To promote regional peace and stability; (3) To promote active collaboration and mutual assistance on matters of common interest in the economic, social, technical, scientific and administrative spheres; (4) To maintain close cooperation

within regional and international organizations; (5) To enhance cooperation in the fields of education, training, and researches in the region. ASEAN now has 10 member countries with the joining of Brunei Darussalam (7 January 1984), Vietnam (28 July 1995), Laos (23 July 1997), Myanmar (23 July 1997), and Cambodia (16 December 1998). Regional and territorial-wise, Southeast Asia has still not accepted two countries for the ASEAN membership, they are Timor Leste (TL) and Papua New Guinea (PNG), which are both in the process of applying for membership. This writing will focus on Timor Leste’s application, especially on its readiness in terms of politics, economy, culture and security, the basic membership criteria to join the regional forum. Timor Leste is situated between the Asia Pacific and Southeast Asian regions with a history of a long struggle for independence. This country submitted its formal application to the ASEAN Secretariat on 4 March 2011 under the Indonesian Chairman. Historically, Timor Leste had made several attempts to join ASEAN before March 2011, including by opening an ASEAN National Secretariat in Dili (Memorial Hall) in early February 2009, where the

secretariat is used to prepare the necessary steps to become an ASEAN member. It had also received moral supports from all ASEAN members, including Indonesia, which was conveyed by President Susilo Bambang Yudhoyono and Foreign Affairs Minister Marty Natalegawa. “We will continue to work hard to help realize Timor Leste’s vision to be a member of ASEAN. Indonesia welcomes the appointment of Dr. Roberto Soares as Timor Leste’s junior minister for ASEAN affairs within Prime Minister Xanana Gusmão’s Cabinet. This move proves Timor Leste’s seriousness to pave the way toward ASEAN membership,” as stated in one of a series of statements made by Minister Natalegawa on the sidelines of a press conference with his Timor Leste counterpart, Jose Luis Guterres in Jakarta on September 2012. One of the most touching moral supports it received was the political statement of Cambodian Prime Minister Hun Sen during former RDTL President Dr. Jose Ramos Horta’s state visit in Phnom Penh, Cambodia on 30 March 2011. He said: "Cambodia's support is regardless Timor-Leste is a small or big, poor or rich country, but to reflect the equal rights of the countries in the region. Timor-Leste will take its rightful place as the 11th member”. ASEAN Secretary General Surin Pitsuwan in his statement after the 18th ASEAN summit at the ASEAN Secretariat in Jakarta said: "I don’t see

any rejection. It’s now just a matter of time and readiness from both parties.” The ASEAN chairman announced in Jakarta the conclusion from the 18th ASEAN summit on 7-8 May 2011 that Timor Leste’s application needs to be further considered and requires more attention. Therefore, each head of state from the ASEAN countries would assign their respective foreign affairs ministers in their capacity as ASEAN Coordinator Council to discuss Timor Leste’s application and to issue a recommendation for the leaders of the ASEAN member countries. Timor Leste continues to strengthen it’s commitment to become a member of ASEAN through the political statements of its leaders who continued to assure that Timor Leste had met all criteria to become the 11th ASEAN member. Former RDTL president Dr. Jose Ramos Horta, during a visit in Cambodia in March 2011, said that the country would not be a burden for other ASEAN members. State Secretary for ASEAN Affairs Dr. Roberto Soares reiterated the statement at the national symposium held by think thank East Timor American Alumni–ETAA on 7 December 2012 at the Auditorium Yayasahan Hak, Farol, Dili. “We will not be a burden to other ASEAN fellow members, we are ready and it is already one step ahead to join ASEAN,”he said. The latest statement made by the country’s leaders came

from Prime Minister Kay Rala Xanana Gusmao when he attended the 5th Bali Democracy Forum in Bali on 8 December 2012: “Timor-Leste is on the verge of joining the Association of Southeast Asian Nations, which entails both challenges and opportunities. Once we are accepted as a fully-fledged member of ASEAN, we will become a closer part of this global economic transition and be able to engage more actively in the strategic agenda of regional development. TimorLeste is committed to seizing the opportunities of the Asian Century which will see increased economic demand in the region. We will do this by developing our industries, our fisheries and our agriculture, by expanding our markets and by developing our tourism sector.” Based on the political, economic, human resources, culture and security aspects, Timor Leste is (99.99%) ready to sign the ASEAN membership form as the 11th member. According to UNDP Human Development Report, “Timor-Leste’s Human Development Index value for 2010 is 0.502, placing it in the medium human development category. In 2005, Timor-Leste’s Human Development Index value was 0.428, and its level at independence in 2002 was 0.375. This report showed that the human resources quality in Timor Leste has improved which placed it on the 120 rank above other ASEAN countries such as Laos (122), Cambodia (124) and

Myanmar (132). Timor Leste has declared itself as a nation of free of illiteracy. Timor-Leste has no foreign debt and according to The Economist 2010 Pocketbook, it has the highest surplus in the world of over 280 per cent as percentage of GDP. Timor-Leste’s Defense force (FFDTL) and police officers (PNTL) have served and are serving with the United Nations in the Balkans and Africa (Sierra Leone, Liberia, DR Congo and Afghanistan). Timor Leste has provided in cash support to victims of natural disasters in Indonesia, Myanmar, China, Madeira Islands (Portugal), Haiti, Brazil and Australia, totaling close to $5 million in the last three years, Starting from November 1st, 2012, Timor-Leste is now become part of the Brazilian board (constituency) at the executive council of the IMF, and become the first Asian country to be represented by Brazil, which already represents nations from South America, Central America, and the Caribbean. 38 % of the 2012 elected MPs are women and several women hold key ministerial portfolios (G7+, CEDAW and Ministries). From the aspects of security and stability, Timor Leste which previously saw cultural conflicts every two years have transformed into a reconciliation and peace-based country since its independence. The UN peace mission in Timor Leste has also ended since 31 October 2012. What’s more significant is that the UN

mission in Timor Leste will end on 31 December 2012. According to the author’s view, Singapore’s refusal to accept Timor Leste’s ASEAN membership is just a matter of postponing time and readiness in terms of politics, economy, culture and security so that ASEAN members can all achieve the goal to say ONE VISION, ONE, IDENTITY, ONE COMMUNITY. The author would like to end this writing by saying that ASEAN’s slogan “One Vision, One Identity, One Community” for 2015 would be meaningless if Timor Leste, which is geographically part of Southeast Asia is still not a member of the ASEAN by 2015. How can ASEAN name itself One Community when it still left out one of its community? How can it call itself ONE IDENTITY when the identity of Timor Leste is not included and ASEAN is unable to implement ONE VISION because Timor Leste has started cooperation on several areas with some ASEAN members, especially with Indonesia on economic cooperation framework called “the Regional Integrated Economic Approach”. So, ASEAN without Timor Leste is the same as a state without sovereignty. The author is Director of CJITL (Center for Investigative Journalists of Timor Leste), the recipient of Southeast Asian Press Alliance SEAPA 2011 Fellowship Program and USA Edward Murrow Fellowship Program 2011.

December 2012

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Focus

The ASEAN Economic Community In the economic area the ASEAN Economic Community (AEC) aims to develop ASEAN to become a competitive and dynamic region, characterized by the growth of a large regional market; to develop a very attractive area for FDI (foreign direct investment); and to develop and become an important production base.

COMPETITIVE ENVIRONMENT

SEAN is in the process of establishing the ASEAN Community by 2015. It is therefore important to often take a closer look at some pertinent issues and development of trends or areas which may affect the realization of ASEAN’s objectives. It concerns issues such as ASEAN’s position in the fastchanging global political-economic environment and its position in Asia which is predicted to become the center of gravity of the global economy. There is no doubt that ASEAN will be facing an increasingly competitive global environment. The question of competition will be a big challenge to ASEAN. At the same time it is predicted that there will be a shift of global economic power from the West to the East which will affect East Asia in particular. Two trends have continued to be of immense importance to ASEAN, namely the process of globalization affecting Asia and the need for closer regional cooperation and integration. Aware of the importance of these two trends ASEAN countries continue to give its fullest attention to the process of globalization and the growth of regionalism in East Asia. It is already known that as a result of globalization, East Asian countries, including ASEAN, has made good use of the expansion of world trade in goods. It has gained considerably from the expansion of trade which made it possible for the countries in the region to accelerate economic growth.

ASEAN STRATEGY

Aware of the upcoming changes in the global and regional setting, ASEAN came up with a document called ASEAN vision 2020 in December 1997 to strengthen ASEAN regional cooperation. The document stated ASEAN’s resolve to develop a closer partnership between the countries in South East Asia, and to achieve dynamic development of their economies. It also underlines ASEAN’s resolve to strengthen national and regional resilience. The ASEAN Economic community (AEC) concept came into being at the 12th ASEAN Summit. ASEAN made a highly important move to foster closer ties among the member countries by declaring the establishment of the ASEAN Community by 2015 underpinned by three important pillars, namely:

Strategic Schedule

• The Political-Security Community • The ASEAN Economic Community (AEC) • The Socio–Cultural Community In the economic area the ASEAN Economic Community (AEC) aims to develop ASEAN to become a competitive and dynamic region, characterized by the growth of a large regional market; to develop a very attractive area for FDI (foreign direct investment); and to develop and become an important production base. ASEAN is aware that in Asia, China and India with their phenomenal growth are already becoming big players of international trade. Aside from China, Japan, and South Korea, ASEAN has also the potential to become another powerhouse in East Asia. The largest countries within ASEAN are Indonesia, Thailand, Singapore, and the Philippines, followed by fast-moving Vietnam. The other smaller countries are still at a lower stage of development. Time is running short and it will be realized that ASEAN will face considerable difficulties to make the necessary preparations and adjustments.

ASEAN IN THE GLOBAL ECONOMY

As a combined region of ten countries, ASEAN has actually already become an economically large region. In addition ASEAN covers an enormously large population of more than half a billion people, a potentially rich market with a large middle class population with increasing purchasing power. Not only in terms of population but also in terms of economic size, ASEAN is rated as a large economic entity. ASEAN (as one combined regional grouping) is already the 5th largest economy in the world right after the EU ($16,447), the US ($14,256), Japan ($5,068), China ($4,909) and ASEAN ($1,499). This should give ASEAN the strength and leverage needed in the global and regional economic relations.

TRADE

ASEAN trade is doing quite well in the area of global trade, booking $1.89 billion in 2008. It declined in 2009 but increased again in 2010 to $2.4 billion. But Intra-ASEAN trade is not large enough, representing only some 24% of ASEAN’s total trade. It must grow much faster to strengthen ASEAN’S economy (Figure 3). With regard to ASEAN’s composition of trade, one may be

Figure 2. ASEAN at a Glance ASEAN ECONOMIC COMMUNITY

SINGLE MARKET & PRODUCTION BASE

COMPETITIVE ECONOMIC REGION

EQUITABLE ECONOMIC DEVELOPMENT

INTEGRATION INTO THE GLOBAL ECONOMY

Free flow of goods

Competition policy

SME deveopment

Coherent Approach towards External Economic Relations

Free flow of services

Consumer Protection

Initiative for ASEAN Integration (IAI)

Free flow of investment

Intellectual Property Rights

Free flow of capital

Infrastructure development

Free flow of skilled labor

Taxation

Priority Integration Sectors

e-Commerce

Human Resource Development

Population (million)

GDP 2010 (US$ billion)

Real GDP growth rate 1990-2010

(Exports+Imports) /GDP (%)

573.9

1,719.2

5.0

131

ASEAN Brunei

Enhanced participation in global supply networks

0.4

12.0

1.8

127

Cambodia

14.6

11.5

7.3

121

Indonesia

227.3

670.4

4.6

Lao

Food, Agriculture and Forestry

6.2

6.3

6.6

Malaysia

27.0

213.1

5.7

192

Myanmar

49.6

28.7

8.7

Philippines

90.3

181.5

3.7

Singapore

4.8

194.9

6.0

421

Thailand

67.4

297.9

4.3

139

Vietnam

86.2

103.1

7.4

149

Source: IMF World Economic Outlook database, accessed 14 July 2010, World Bank, World Development Indicators database, accessed 2 September 2010

Research and Development

Figure 3. Free Flow of Goods (Trend of Intra-ASEAN Trade and ASEAN Total Trade, 1993 - 2009)

Figure 4. Composition of ASEAN Trade (percentage of total trade) Exports

SITC Category

1990

1,800,000 1,600,000

Imports

2006

1990

2006

0 Food and live animals chiefly for food

9.0

4.5

4.8

3.7 0.4

1 Beverages and tobacco

0.8

0.4

0.8

1,200,000

2 Crude materials, inedible, except fuels

6.8

4.0

4.3

2.4

1,000,000

3 Mineral fuels, lubricants and related materials

20.3

14.5

11.4

17.7 0.3

1,400,000 US$ million

By Atmono Suryo

Figure 1. Main Elements of AEC

Total Trade

800,000

4 Animal and vegetable oils, fats and waxes

2.4

2.0

0.4

600,000

5 Chemicals and related products, nes

3.6

7.4

9.7

8.5

400,000

6 Manufactured goods

11.1

8.5

15.7

12.3

7 Machinery and transport equipment

30.7

46.3

43.2

46.5

8 Miscellaneous manufactured articles

12.6

9.8

6.3

5.9

9 Commodities and transactions, nes

2.7

2.6

3.0

2.4

Intra-ASEAN Trade

200,000 0 1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: UN COMTRADE

amazed that ASEAN is not only quite strong in the exports of machinery and transport equipment but also in the area of mineral fuels, lubricants and related matters. It is, however, not that strong in the exports of manufactured goods and commodities (Figure 4).

Figure 5. ASEAN Trade, 2009 - 2010 (as of 15 Feb 2012)

value in US$ million; change in percent 2009

Country

Exports

Imports

2010 Total trade

Exports

Year-on-year change

Imports

Total trade

Exports

Imports

Total trade

Brunei Darussalam

7,152.0

2,450.5

9,602.5

8,615.4

2,383.8

10,999.2

20.5

(2.7)

14.5

Cambodia

4,985.8

3,900.9

8,886.7

5,583.6

4,896.8

10,480.3

12.0

25.5

17.9

Indonesia

116,510.0

96,829.2

213,339.2

157,779.1

135,663.3

293,442.4

35.4

40.1

37.5

If ASEAN is to become a production base, it has to develop a joint strategy in what areas would be the most potential areas to meet internal ASEAN requirements and to increase its exports.

Lao PDR

1,237.2

1,725.0

2,962.1

2,432.8

2,076.4

4,509.1

96.6

20.4

52.2

Malaysia

156,890.9

123,330.5

280,221.4

198,800.8

164,733.5

363,534.3

26.7

33.6

29.7

Myanmar

6,341.5

3,849.9

10,191.3

7,599.5

4,198.7

11,798.3

19.8

9.1

15.8

INVESTMENT

In the area of Global FDI (foreign direct investment) the developed countries still take up the largest share in 2008. But among the emerging countries, China (6.4%) and Russia (4.1%) are the top destinies of FDI, followed closely by ASEAN (3.5%), Brazil (2.7%) and India (2.5%). The emerging countries, including ASEAN, should make their joint efforts to increase their share (Figure 6). In the area of trade and investment, Indonesia is still lagging behind Singapore, Malaysia and Thailand while Vietnam is progressing at a fast rate. Indonesia is aware that a strong prosperous ASEAN would support and strengthen its position in the global political and economic arena. The writer is former ambassador to the EU.

The Philippines

38,334.7

45,533.9

83,868.6

51,431.7

58,228.6

109,660.3

34.2

27.9

30.8

Singapore

269,832.5

245,784.7

515,617.1

371,194.3

328,078.9

699,273.3

37.6

33.5

35.6

Thailand

152,497.2

133,769.6

286,266.8

195,312.3

189,728.4

385,040.8

28.1

41.8

34.5

Vietnam

56,691.0

69,230.9

125,921.9

72,191.9

84,801.2

156,993.1

27.3

22.5

24.7

ASEAN

810,472.6

726,405.0

1,536,877.6

1,070,941.4

974,789.6

2,045,731.0

32.1

34.2

33.1

Source: ASEAN Merchandise Trade Statistics Database (compiled/computed from data submission, publications and/or websites of ASEAN Member States' national ASEAN Free Trade Area (AFTA) units, national statistics offices, customs departments/agencies, or central banks

Figure 6. Global FDI (% Share) Brazil 1.8%

Brazil 1.8%

Russia 2.8% India 1.3%

China 4.2%

ASEAN 3.5%

Rest of the World 80.9%

Rest of the World 86.4%

2007

2008

Source: UNCTAD

ENGLISH EDITION

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December 2012

Law & Regulation

“Is It Safe to Work with the Government?” The companies’ bargaining position is weaker compared to that of the government. To overcome the problem, the government has given its support and guarantee to companies that work with the government, in the form of: Fiscal contribution; Permit, land procurement and part of the construction.; Tax incentives; and Risk sharing guarantee.

By Paulus Khierawan

he government is responsible to carry out national development, which could not be achieved without infrastructure development. However, until today there are still many infrastructure that have still not been built by the government. One of the obstacles faced by the government is financial restraints. One of the most efFective ways to overcome the problem is through cooperation between the government and the private sector or better known as public private partnership (PPP). PPP is actually not a new idea in Indonesia. The government through the National Development Planning Agency (Bappenas) has actively promoted various projects (in the capital city and the regions) to be offered to the private sector, both local and

foreign investors. The PPP scheme is expected to accelerate national development goals. From the investors’ perspectives, what are the factors that could attract them to work with the government? First of all, they would consider whether the projects offered by the government are financially worthy. The main goal in investing is to make profit, that’s why the first thing that investors take into consideration is whether the project could offer profits or is financially worthy. Another factor is how to share the risks that may emerge from the project. If the risks from the project doesn’t go in line with the profit, investors would be reluctant to place their capital into the project. Risks become the basic consideration for investors to invest their funds in government projects. This is because the bargaining position between the private sector and the government is not balanced. Prime examples are tariff revisions or the government’s slow land procurement or other things that may cause investors to suffer losses. To attract the private sector, the government can offer facilities.

Article 17A of Presidential Decree No 13/2010 on the revision of Presidential Decree No 67/2005 about the government’s cooperation with companies on infrastructure development stated that “Ministers/agency heads/regional heads can support the project under the scope of cooperation project”. The support could come in the form of:

Fiscal contribution

The government’s support in the form of fiscal contribution must be included in the state budget or regional budget.

Permit, land procurement and part of the construction

Land procurement process should be done before the business procurement process takes place so that when the private sector or companies joined, they don’t have to be bothered with land procurement problem since land issue is one the obstacles that often arise in government projects, especially in the infrastructure sector, which requires a big chunk of land. If the cooperation project is financially worthy, the company can reimburse part or the whole the land.

Tax incentives

Ministers/agency heads/regional heads can recommend giving tax incentives and get an approval from the finance minister. Another facility that the government could offer is to guarantee risk sharing. Basically, risk management should be given to the party most capable of managing it. The following is the risk category that need to be watched out during cooperation project between the government and the private sector:

Location risks

Those included in location risks are land clearance, unsuitable land location or environmental risks. Who is going to pay for the extra expenses incurred when the land clearance process is slow? In toll road projects, the government can give assurance that it will cover the extra cost that stems from the slow land clearance process or the land clearing cost that increases above the land capping. The government can also guarantee that it will cover extra costs that may arise because of the late land clearance process.

Tariff revision risks

Tarriffs are among the important elements in calculating loss or profit, break event point (BEP), or rate of return. However, in some cooperation projects between the government and private sector, the government is entitled to set the tariff. For example, in the train project or other transportation. The tariff for the train is decided by the government. So, what happens when after the project had started the government decided to cut the tariff which in turn made the project become financially unworthy? Cooperation agreement will include a clause which states the government has guaranteed that it will cover the risks.

Demand risks

Demand risks are found when during the realization of the project the demand for the service became unexpectedly lower than the projection. For instance in a toll road project, it was projected that 100,000 cars would cross the road everyday, but in reality the number was lower.

Rival facility risks

It’s a risk when a similar facility or infrastructure is built and competed with the facility or infrastructure that had already been built and thus causing losses. For instance, the government built another toll road next to the already completed toll project, causing a decline in the number of vehicles that passed that toll road because road users chose to use the new one. Entrepreneurs can seek a guarantee that the government will not build another facility that could compete with the project until the cooperation contract expired.

Political risks

Included here are political decisions. For instance, from the risk of asset nationalization, regulation/law revision risk, tax revision risk, pemit risk. Imagine when the government arbitrarily took over the asset or revoked the permit. These are certainly the risks that need to be taken into account by every investor. Aside from those five risks, there are of course other risks that need to be considered, such as the declining economic value of the asset when the contract expired, or design risk, and others. But the five risks mentioned earlier are those beyond the control of the companies. The companies’ bargaining position is weaker compared to that of the government. To overcome the problem, the government has given its support and guarantee to companies that work with the government. So, working with the government is not always a loss situation, on the contrary it could be profitable if it’s backed up with permit, guarantee and others.

Article 17A of Presidential Decree No 13/2010 on the revision of Presidential Decree No 67/2005 about the government’s cooperation with companies on infrastructure development stated that “Ministers/ agency heads/regional heads can support the project under the scope of cooperation project”.

December 2012

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Energy www.ecoinstitution.com/Aleksandar Rodic

Boosting Clean Energy Development in Indonesia Standards, Regulations, and Incentives Required Clean Energy Development has been officially one of the cornerstones of Indonesia’s national energy policy. Various laws, support policies, studies and plans have been established in the past, and most recently the National Energy Council submitted the draft of update of National Energy Policy which will cover the medium and long term periods. But what does it take to make such plans and objectives achievable especially with regard to clean energy?

By Herman Darnel Ibrahim Board Member of DEN

asically there are four portfolios or approaches that can be followed to address the implementation of clean energy development. One, is expanding the utilization of no or low carbon or carbon-free energy sources, such as hydro, geothermal, solar, wind, ocean and nuclear. Two, is making serious efforts in using more efficient technology in burning fossil energy sources, such as combined cycle, cogeneration, super-critical boiler, etc. Three, is the use of energy in more efficient ways so as to reduce the overall energy demand e.g. with workable measures like ‘green labelling’ of appliances, improving energy efficiency in buildings both commercial and household, using energy efficient industrial machinery and means of transportation, and Four, is by applying Carbon Capture and Storage (CCS) a technology to reduce carbon emissions from power plants and other heavy industries. To ensure that clean energy development is implemented effectively, the government should first set measurement criteria to determine the clean energy key performance (Key Performance Indicators or KPI). The proposed KPI are:

• The annual amount and share of zero-carbon renewable energy production in the national and regional energy mix. • The annual average of conversion efficiency of thermal power plants at national and regional level. • Annual average of CO2 emissions in metric tons per Mega Watt Hour (MWh) of electricity production. These 3 indicators will drive the planning process, lead to more serious implementation, and will make the results more assessable. The target based on these three indicators and the allocated budget for its implementation should be reflected in the Annual National Budget [RAPBN] as well as in Annual Regional Budgets [RAPBD]. The Target should also be part of, and tied into, the National and Regional Energy Plan. Similar principles and indicators has been applied to the target and performance measures for oil lifting (production), oil price setting and in dealing with fuel and electricity subsidies. But generally speaking it is more expensive to produce cleaner energy than conventional energy. Therefore, in order to increase the share of clean energy in the national energy mix, Indonesia needs to learn from other countries which have done the exercises successfully, like putting a Mandated Quota at a

carefully determined price for electricity generated using low or zero-carbon energy sources. Mandated Quotas will, by regulation, oblige every utility company and independent power producers to generate a percentage of their total electricity production from low carbon energy sources. The mandated (fixed) price regulation (popularly called Feed- in Tariff) will oblige utilities to purchase energy produced from low carbon energy sources at that price which is normally higher than regular one using conventional energy. In order to implement a Mandated Quota system, the government should set a standard and regulations as follows: • The criteria of capacity and annual energy output based on which the Quota should be met. • The amount (in percentage to total output) of renewable or low carbon energy production of which the power producers are obliged (mandated) to produce. • In case the power producer cannot produce the quota allowed to it, the shortage can be made up by purchase from other available producers, or by contributing an amount of equivalent funds to a special Clean Energy Fund established by the government. The mandated quota system linked to FiT for clean energy

production has been implemented by several countries including Japan, Thailand, and Malaysia. For fairness sake, the FiT should be differentiated by type of the renewable energy source and by regions where the electricity is generated. To ensure its acceptance and accountability, the FiT should be determined based on a thorough study by independent consultants (experts and practitioners), and it should be discussed with relevant stakeholders intensively before any final decision is made by the government. Ideally, the FiT should not be too low so it is bankable and attractive to investors/ producers. It should also not be too high to overburden the government budget, or affecting the utility’s profitability. Further, the implementation of FiT shall require at least the following conditions: • The standard [base] price the utility will have to pay should be based on the economical value i.e. price without government subsidy. This may change subsequently depending on the market price development, but such change will not affect the existing contracts (PPA) already closed by developers and the Utility prior to the change. • The FiT should be applied for each type of energy source, and it will vary by regions as to accommodate the different level of costs the develop-

ers must spend to install and operate the power systems in particular location. • The standard development proposal should be based on a proper feasibility study particularly covering technical matters, to ensure the system connection is technically possible and reliable without disrupting the existing transmission system. • The FiT contract must be standardized and procedures to apply it must be as simple and clear as possible to minimise unnecessary delays and to avoid future disputes.

•

“Cleaner Fossil Energy” and Energy Efficiency

The clean energy development using cleaner fossil energy by applying more efficient technology and by achieving energy efficiency will require the following standards, regulations, and incentives: • New power plants must use efficient technology including cogeneration, combined cycle, supercritical boiler, etc. to ensure lower carbon emissions. • Incentives are to be provided by the government such as import tax exemption, income tax holidays, etc. • Government is eventually to provide the necessary assistance or services to developers if the systems would qualify carbon compensation systems like CDM or Domestic Carbon Trade Mechanism. Type

•

of projects that may qualify for this facilities are those involving retrofit, refurbishment or replacement of existing technology by cleaner or a more efficient ones. Application of energy efficiency standards and labellings to household appliances like light bulbs, television, electric fan, electric pump, refrigerator, air conditioner, washing machines etc. Promote ‘green transportation’ by providing incentives for using cleaner or more energy efficient vehicles, mainly motor cars, buses, cars and motor cycles. These vehicles may eventually and gradually be replaced by hybrid and electrical vehicles (EV) when these technologies come of age. Promote energy efficiency measures to be applied by energy intensive industries, by setting standards of energy use per production unit, such as: energy use/ton steel production; energy use/barrel of oil refined; energy use/ ton of sugar production, energy use/ton of cement production, for example. The government could perform audits on technology use to determine whether such technology still meets the efficiency standards required, and impose regulations to replace them and provide incentives to encourage energy efficiency improvement. Provide incentives to encour-

age retrofitting or replacement of existing industrial production systems with newer technology to make the systems more energy efficient. The incentive may include government soft loan; grant for part of the investment and providing assistance where possible in dealing with carbon compensation facilities. Theoretical as it may sound, the above policies and measures may help Indonesia boost clean energy development, provided such policies and measures are implemented, seriously and consistently. The weakness in Indonesia’s current governing practices lies primarily in the lack of cohesiveness and coordination among diverse bureaucratic branches in doing their jobs effectively. Another weakness is frequently missing clear implementation rules and drivers to execute basically good policies. There is a long time gap between the time, the principal decision, law or regulations are enacted, and the supporting rules and implementing regulations are put into operation. All of these must be improved if the country will achieve its target of clean energy development in the coming decades. Note: This article was based on paper presented to the 19th Conference On Electric Power Supply Industry (CEPSI) 15-19 October 2012, Bali, Indonesia.

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December 2012

International

Collection of Borobudur Temple Relief Back on Display at the Vatican Museum This collection would encourage the international community to get acquainted with the diversity and richness of Indonesian culture.

www.embassyofindonesia.eu

he 40-year-old replica collection of Borobudur Temple relief is back on display. After a lengthy and complicated revitalization process, the replicas are now one of the exhibits in the Missionary-Ethnological Museum of the Vatican Museum. Vice Minister of Tourism and Creative Economy Sapta Nirwandar, Ambassador Budiarman and the President of the Vatican City State, Cardinal Giuseppe Bertello along with the Director of the Vatican Museum, Antonio Paolucci, were at the Museum to officially open the new display last week. According to Sapta, this collection would encourage the international community to get acquainted with the diversity and richness of Indonesian culture.

The exhibition went by the theme of ‘The richness and diversity of Indonesian culture’ and ‘Religious harmony in Indonesia’, and is a part of the Indonesian Corner in the museum. This concept was expected to give an inspiration to around five millions museum visitors that Indonesia ‘must be seen, must be learnt and must be experienced’.

Vice Minister of Tourism and Creative Economy Sapta Nirwandar

In terms of tourism promotional activities, Sapta highlighted that this exhibition was aimed to develop a strategic and permanent promotional facility overseas for Indonesia. “This could be a novelty for the Indonesian government,” he said.

lection was a sign of Indonesia’s intention to promote interfaith and cultural dialogs through the arts and cultural heritage as a vehicle to achieve international peace. On a similar note, Cardinal Bertello expressed that the Borobudur Temple Collection was able of representing an ethnological, cultural and religious diversity in the Museum, which is situated at the heart of the Roman Catholic Church culture. This was in line with the Museum’s mission of uniting all world cultures and religions under the context of universal religious harmony. Moreover, sacred arts could also become a topic for dialogs which bring a message of peace to people all over the world.

The UN Recognizes Palestine as an Observer State The State of Palestine is eventually acknowledged as one of the UN state observers. This decision was taken through the process of voting in the UN General Assembly, which was especially held to discuss Palestine’s application for being a UN state observer. This occurred at the UN Headquarters, New York, on Thursday afternoon, local time last month. Indonesian Minister of Foreign Affairs Marty M. Natalegawa, who attended the session, said that Indonesia did not only support but also initiated the resolution, together with other countries, as a co-sponsor. Minister Marty also said that Palestinian President Mahmoud Abbas came in person to the United Nation’s Headquarters in New York to declare Palestine’s intention to be a state observer. "The acceptance of Palestine as a UN state observer stands as a symbol of great political im-

portance for its international diplomacy," said Marty. This acknowledgement signifies the recognition of Palestine as an independent state by the international community; therefore, the country now has the right to take active roles in all UN organs. Marty M. Natalegawa Indonesian Minister of Foreign Affairs

It is the time for the international community to start doing the right thing. The world can no longer turn a blind eye to the sufferings of the Palestinian people, which they have endured for so long."

In the session, confirming Indonesia’s commitment to supporting Palestine’s interests, Minister Marty stated that the international community should take concrete steps to protect the rights of the Palestinian people for constituting an independent and self-governing state. "It is the time for the international community to start doing the right thing. The world can no longer turn a blind eye to the sufferings of the Palestinian people, which they have endured for so long," he said. Indonesia said that, in spite of great obstacles posed by invading powers, the people of Palestine have built and developed

their country to the point that enables them to act as an independent state. “Therefore,” he continued, “there is no reason for the international community to reject Palestine’s application as a UN state observer.” Indonesia even asked the Assembly to immediately consider accepting Palestine’s application to become a full member of the United Nations. "Palestine’s full membership in the UN is perfectly appropriate and consistent with the vision of ‘two-state solution’," said Marty. Meanwhile, Indonesia also stressed the importance of establishing peace and creating conditions conducive to holding peace talks, which will be focused on sensitive issues such as the termination of the illegal constructions of Israeli settlements and the discontinuation of collective punishments which violate human rights.

The Big Five 2012: Indonesia Grabs $25 Million in Trade Contracts www.constructionweekonline.com

The biggest building materials and construction exhibition in the Middle East and North Africa, the Big Five 2012, was held on 5-8 November 2012 at the World Trade Center Dubai, United Arab Emirates. Carrying the theme “Trade with Remarkable Indonesia”, the Indonesian Pavilion participated by building a site that had an area of 210 square meters. “Throughout the exhibition, we recorded a total of prospective contracts valued at $25.3 million for medium density fibreboard (MDF), MDF prompt shipment, wooden doors, flooring, kitchen sets, toilet seats and basins, tile resin for bathrooms and bathroom sets, which attracted much interest of buyers from India, Oman, Qatar, the United Arab Emirates, Kuwait, Saudi Arabia, Bahrain, Greece, and Pakistan,” said the Director of Promotion and Images Development of the Directorate General of National Export Development of the Ministry of Trade, Pradnyawati. Indonesia, with its rich natural resource and the creativity of its people, proves to be able to produce quality and unique building materials that cannot be produced by any other country in this world. This is what makes Indonesian building materials have their own place in the minds of construction entre-

The Big Five 2012 was officially opened by Deputy Ruler of Dubai Sheikh Hamdan bin Rashid Al Maktoum. This exhibition was taken part by more than 2.5 thousand exhibitors from 70 countries. preneurs in the Middle East and North Africa. The Indonesian Pavilion, whose location is near the Qatar, Thailand, and Malaysia Pavilions, exhibited building material products belonging to 16 entrepreneurs. Among them are bathroom accessories, natural panel for interior, panel for air conditioner installation, floor tile, wooden door for engineering

construction, metal roofing, prefabricated house, pre-engineer warehouse, roll forming machine, MDF, polyester plywood, blackboard and MDF, anti fire door and interior items. The Big Five 2012 was officially opened by Deputy Ruler of Dubai Sheikh Hamdan bin Rashid Al Maktoum. This exhibition was taken part by more

than 2.5 thousand exhibitors from 70 countries. A moment after the opening ceremony of the exhibition, British Prime Minister David Cameron, accompanied by the British Minister of Trade and Investment Stephen Green, conducted a visit to the UK Pavilion. This exhibition is considered very strategic and potential by developed countries to market their products.

At the same time, Indonesia stressed the importance of dialogues between the Palestinian people themselves. The UN General Assembly produced a resolution which acknowledged the State of Palestine as a state observer. This was supported by 138 countries, but there were 9 countries rejecting the proposal and 41 states refusing to take any position.

www.halleinstitute.emory.edu

Ambassador Dino Patti Djalal Receives Global Innovation Award from Emory University, Atlanta Indonesian Ambassador to the US, Dr. Dino Patti Djalal, last month received the Global Innovation Award from Emory University in Atlanta, Georgina, US. The university presents this prestigious award to prominent figures who consistently demonstrate their leadership and innovation in diplomacy and social welfare at large. Ambassador Djalal is regarded as an innovator in multiple sectors and has successfully changed the profile of diplomacy in emergingeconomy country such as Indonesia. On the night of the award ceremony, hundreds of invitations packed the Goizueta Business School Hall of the Emory University. Amongst them were the Rector of the Emory University, Dean of the Goizueta Business School, Indonesian Consul General in Houston, Indonesian Education Attaché to the US, Atlanta state government official, academicians, Indonesian Diasporas and the local businesspeople. In the ceremony – which was sponsored by the Manan Foundation – the Ambassador delivered his key speech entitled ”The Rise of Emerging Powers in the 21st Century”. He stated that the world was facing different kinds of revolutions in the 21st century, compared to those in the 20th century. “The 21st century revolutions generate a huge num-

ber of middle class population and propagate the spirit of people-to-people connectivity all over the world,” the Ambassador said. He also highlighted the fact that a number of Asian emerging economies had enjoyed impressive progress within a relatively short period of one year. This progress was possible thanks to an expansive mindset, confidence and advanced innovations. The Director of the Office of International Affairs and The Claus M. Halle Institute for Global Learning of the Emory University, Holli Semetko, in her opening remarks mentioned positive impressions over Indonesia’s achievements and Ambassador Djalal’s accomplishments. The award was presented by Professor Jeffrey Rosenweig, the Director of the Global Perspectives Program, Goizueta Business School of Emory University. Ambassador Djalal is the only diplomat who has ever received this prestigious award. Besides the Ambassador, other laureates included the king of media and philanthropist Ted Turner; former CEO of Delta Airlines, Gerald Grinstein; CEO of AT&T Mobility, Ralph de la Vega; Charles H. Kellstadt from Goizueta Business School and Professor of Marketing Major, Jagdish Sheth.

December 2012

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Education Reshaping Entrepreneurship Education in Indonesia The President Post/Rians Rivco

Australia Targets “Sleeping Giant” Indonesia Australia has joined a growing list of countries looking to tap the Indonesian student market – widely considered a sleeping giant in recruitment terms – by holding a major exhibition to promote its science education. Co-run by various universities and government departments, the Science For Our Future Festival involved outreach activities and events in Jakarta, Surabaya and Pontianak throughout October. While the exhibition was themed around global development, there was clear subtext to boost enrolments in the natural sciences at Australian universities. “Under the SFOFF ban-

A National Educators Conference 2012, entitled “Reshaping Entrepreneurship Education in Indonesia”, provides opportunities for nationwide educators to be embedded with an entrepreneurial spirit that will later promoted to students all over Indonesia.

ntrepreneurship has for long not been acknowledged as a factor that determines the future of a country’s economy, much less as part of a comprehensive developmental strategy. Therefore it is no doubt that students of previous

ner, a range of campaigns promoted the importance of science for addressing major challenges faced by modern society,” Austrade, who helped organise the fair, said in a statement. ”Various science education activities targeted Indonesian students, researchers and the general public, with 2,200 Indonesians taking part in one of more of the events.” According to the British Council, 2.6 million Indonesian students will enter higher education over the next decade, however only around 50,000 currently study abroad according to a 2010 survey. Australia is top choice (with 17,896 enrolments in 2011), followed by the US, UK and Singapore. With the number studying overseas growing at 20% annually, Australia could bene-

fit greatly, but it must manage the challenges of a high dollar and rising competition abroad. This month the UK furthered its ties with Indonesia with a series of new university partnerships, while the US – hoping to stem a decline in Indonesian interest (enrolments fell from 13,280 in 1997-98 to 6,940 in 200910) – opened a cultural centre in Jakarta in 2011, promising Indonesians a 95% student visa acceptance rate. The Prime Minister of New Zealand also visited Indonesia in May, while China, not yet a top destination, has increased its scholarships following a 42% surge in Indonesian enrolments at its universities in 2007-2009. www.serpong.binus-school.net

Sandiaga Uno (right), one of the speakers at the National Educators Conference 2012. The event was organized by the Sampoerna School of Education, the Mien R. Uno Foundation and the World Bank.

generations tend to choose ‘traditional’ professions and turn down opportunities of becoming entrepreneurs. No wonder many Indonesians are ‘accidental’ entrepreneurs, doing business by necessity rather than by intention. Fortunately, some of them have become highly successful and are inspiring models for others. It is also fortunate that these successful entrepreneurs have recently been collaborating with the government, private companies, and even NGOs for the purpose of pushing more entrepreneurial spirit among relevant stakeholders.

In that regard, a National Educators Conference 2012, entitled “Reshaping Entrepreneurship Education in Indonesia”, was held. The two-day conference and workshop was held in Jakarta, 11-12 December 2012, and provides opportunities for nationwide educators to be embedded with an entrepreneurial spirit that will later promoted to students all over Indonesia. To identify the challenges related to the development of entrepreneurship in Indonesian schools, the Ministry of National Education and Culture through the Center for Curriculum and Books (Puskurbuk) developed a handbook on the implemen-

tation of entrepreneurship education in elementary and secondary schools. Puskurbuk classifies several characteristics associated with the entrepreneurial spirit adapted to respective education levels. Organised by the Sampoerna School of Education, the Mien R. Uno Foundation and the World Bank, the NEC 2012 is arguably the first of its kind. The scheduled speakers are prominent figures such as Minister of Trade Gita Wirjawan, Minister of Education and Culture Prof M. Nuh, Sandiaga Uno of Saratoga Investama Sedaya and Prof Paulina Panne, the Dean of Sampoerna School of Education.

Science For Our Future Festival (SFOFF) 2012 panel discussion at the Binus International School Serpong. The event involved outreach activities and events in Jakarta, Surabaya and Pontianak throughout October. While the exhibition was themed around global development, there was clear subtext to boost enrolments in the natural sciences at Australian universities.

The President Post

BUSINESS

December 2012 No. 39 www.thepresidentpost.com

tions. He gave an example of the long process of land procurement and regulation, which will begin in 2013 and issued in 2014.

BUSINESS BRIEFS Trans Retail to Boost Sales After Acquiring Carrefour Indonesia The CEO of CT CORP, Chairul Tanjung, is keen on increasing the sales margin of PT Trans Retail tenfold, after signing an agreement with Carrefour Indonesia, on Monday (Nov 19). “After acquiring 60% of PT Carrefour Indonesia, I want to increase the sales margin tenfold, under the new name,” said Tanjung, in Jakarta, on Tuesday. To meet the target, Tanjung mentioned that PT Trans Retail will create multiform business retails in Indonesia, such as grocery shops, hypermarkets, mini-markets and convenience stores. “We will be bringing an international brand consultant to design our multiform business,” he said. However, Tanjung noted that reaching the multiform retail network goal will take some time, based on the regulations and infrastructure preparaChairul Tanjung

SECTION B

PT Trans Retail, one of the CT Corp`s subsidiaries, has acquired 40% of PT Carrefour Indonesia in 2010 and taken 60%, in a deal then worth $750 million. It went through loans from ten international banks: Credit Suisse, BNP Paribas, JP Morgan Securities, ING Bank, ANZ, Goldman Sachs, Deutsche Bank, Royal Bank of Scotland, Standard Chartered Bank and Bank of Tokyo. Tanjung added that after the acquisition, PT Trans Retail holds exclusive license to use the Carrefour brand in Indonesia, and it has a chance to acquire Carrefour shares from any part of the world. “Particularly in Southeast Asia, Carrefour Vietnam and Myanmar could get acquired,” he said.

Pertamina EP Makes Profit of Rp14.3t PT Pertamina EP, the upstream business unit of state-owned oil and gas company PT Pertamina, books a net profit of Rp14.3 trillion from January to September this year, according to company public relations manager Agus Amperianto. He said here on Sunday the profit was driven production of oil and gas which until September 2012 respectively reached 127,900 barrels and 1,048.9 million cubic feet (MMSCFD) a day. “The performance in the third

quarter this year is better than in the same period last year,” he added. He said the net profit from January to September 2012 was higher than that of the same period last year which was recorded at Rp11.8 trillion. Oil and gas production for the period were also higher than in the same period last year recorded at 125,100 barrels a day and 1,027.6 MMSCFD respectively. Agus said efforts to optimize production until September 2012 include drilling 84 exploitation wells and 13 others. He said Pertamina EP meanwhile has finished work over on 52 wells and is now still working on three others. With regard to finding new oil and gas fields the company until September 2012 has conducted a three-dimensional seismic survey on a 2,027 square kilometer land and a two-dimensional survey on a 538 square kilometers, he said. It is also finishing exploration drilling on 18 wells consisting of six wildcats and 12 delineations, he added. “Right now we are still in the process of conducting drilling on three wildcat, two delineation and one twin wells, Agus said. He said Pertamina EP has also taken various efforts to accelerate production including optimizing existing assets, developing new fields and conducting work on old wells. Apart from that it would also reactivate old wells, conduct enhanced oil recovery and put on production explorations.

Comics Business Offers Huge Opportunity: Minister www.indonesiakreatif.net

The comics industry plays an important role in the national creative industry.

inister of Tourism and Creative Economy Mari Elka Pangestu stated that there is a huge business opportunity, for the local comics industry in the domestic market. “I urge creative youths to explore business opportunities in the national comics industry,” said the Minister, in a creative products exhibition, Pekan Produk Kreatif Indonesia (PPKI) 2012, here on Thursday. The exhibition, which was held from November 21 to 25, has been organised by The Ministry of Tourism and Creative Economy, in collaboration with several companies and stakeholders, at the Epicentrum Walk, Kuningan super block, in South Jakarta. The event also includes a talk on the national comics industry. Pangestu is hopeful that the event will inspire local comic book artists to join the comics industry in Indonesia, since there are ample business opportunities in the domestic market.

Vale to Increase Nickel Production PT Vale Indonesia plans to increase nickel production from its mining areas to 90,000 metric tons a year by 2017 from the current 75,000 tons. The company`s external relations and corporate affairs director, Basrie Kamba, said here on Wednesday “we will increase production from 75,000 tons to 90,000 tons by 2017 and to 120,000 tons later on.” He made the statement on the sidelines of a discussion on the environmental impact analysis document for the development of a nickel processing plant in Bahodopi Block in the district of Morowali, Central Sulawesi. He said the plan would immediately be realized after the environmental impact analysis had been finished and the permit for the forest land leasing from the forestry ministry has been issued. “We wish we could do it quickly but there are processes that must first be passed. We do not want to violate the law,” he said. He said the nickel processing plant would later be developed into a refining plant. “If the refining plant is realized Bahodopi would be the

first to have a nickel refining plant in Indonesia. It is not a promise but a will,” he said. The land for the working contract of Vale in Morowali covers 35,492 hectares initially controlled by PT International Nickel Indonesia (Nico) Tbk. which PT Vale acquired in 2006 and changed the name of the company to PT Vale Indonesia in 2012. PT Vale contributes 5% to the world`s nickel demand. Its production is sold to Vale Canada Ltd. and Sumitomo Metal Mining Co. Ltd. under a long-term purchase deal. Vale is a mining company headquartered in Brazil. It was established on June 1, 1942 by the Brazilian Federation government. It operates in five continents in 38 countries, employing more than 126,000 workers and 50,000 of them are working in Vale ongoing projects. Basrie said the application for an exploration permit in Bahodopi Block has been filed to the government since June 2011. “Since 1968 when it was still named Inco it has already conducted exploration. Exploration will be done again for the next development,” he said.

PT Merpati Nusantara Airlines President Director Rudy Setyopurnomo. PT Merpati Nusantara Airlines plans to repay its debts reaching Rp5 trillion by repaying Rp2.5 trillion of them next year that include some debts due in 2015, President Director Rudy Setyopurnomo said. “The debts have been a burden for Merpati. The debts must be settled next year in stages,” he said here on Wednesday. He said the remaining Rp2.5 trillion debts to be due in 2015 would be repaid in 2016, adding the debt repayment would be done through a debt-to-equity swap scheme. “The debts must be settled next year so that the company`s operations would be better,” he said.

“We hope such events can drive the comics industry in Indonesia,” she said. According to her, the comics industry plays an important role in the national creative industry. “Therefore, the comics industry should collaborate with the industry of animation, advertising and movies. By doing so, local comic book artists can create growth for the comics industry, in the country,” she said. The Minister noted that the contribution of the creative industry to the gross domestic product (GDP) has been on the rise lately. Based on the data released by the Ministry, the creative industry contributed as much as Rp472.8 trillion to the GDP in 2010. In addition, it created jobs for 11.49 million people. These figures increased in 2011 to Rp526 trillion, with 11.51 million people employed in the industry. “We expect the number to rise again this year to Rp573.4 trillion, with 11.57 million people employed in the industry,” said the Minister.

Merpati to Restructure Debts

Mari Elka Pangestu noted that the contribution of the creative industry to the gross domestic product (GDP) has been on the rise lately. Based on the data released by the Ministry, the creative industry contributed as much as Rp472.8 trillion to the GDP in 2010.

He said the debts were

made before he was named president director. In the first six months in office he said he had concentrated on improving operations and marketing divisions and he is now concentrating on putting the company`s finance in order. “If all goes well by 2014 the company plans to conduct an initial public offering of its stocks,” he said. It has been reported that the state-owned airline company would acquire 60 new planes under an operations cooperation scheme for a five year period with China Aircraft Leasing Company (CALC). The effort is part of Merpati`s “reborn” program aimed at reviving the company. “Right now the company has a fleet of 30 planes. Next year it will receive 20 jet planes,” Rudy said.

Textile Entrepreneurs Told to Produce Value-added Goods The Ministry of Industry has urged local textile entrepreneurs, especially those in Small and Medium Enterprises (SMEs), to produce value added goods, in an attempt to reduce the influx of imported textile products to Indonesia, in 2013. “The influx of textile imports is on the rise, and it will certainly affect the local textile SMEs. Therefore, the government is urging local textile manufacturers to create superior products to stop the invasion of imported products,” said the Director General of SMEs, Ministry of Industry, Euis Saedah, on Tuesday.

According to her, large-scale textile manufacturers should cooperate with SMEs to meet the local demand. “Besides, cooperation between large-scale manufacturers and SMEs is one way to increase the potential of local SMEs, in generating superior textile products,” she explained. “For instance, providing accessories for manufacturers` products can be taken over by SMEs,” she added. Saedah argued that if local SMEs find difficulties in selling their products to the interna-

tional market, they can sell them to the domestic market instead. “So far, SMEs have not really penetrated the domestic market. In fact, there are people who are interested in purchasing local textile products,” she said. Saedah also noted that some SMEs have begun marketing their textile products to modern retailers, such as Sarinah. “So, we don`t have to really depend on export markets,” she said. Earlier, the Indonesian Textile Association stated that Indonesia`s textile exports have slowed down in the first quarter

of this year, partly due to a decrease in the demand from one of its key buyers, the European Union (EU), despite a positive yearly growth. “We`ve still recorded a positive growth rate because of orders from the U.S. and Japan,” said the Indonesian Textile Association chairman, Ade Sudrajat. The U.S. and EU have more than 40% and 10% shares respectively, in the nation`s annual textile exports, while Japan accounts for around a 5% share, according to the association`s trade statistics.

The influx of textile imports is on the rise, and it will certainly affect the local textile SMEs. Therefore, the government is urging local textile manufacturers to create superior products to stop the invasion of imported products.” Euis Saedah Director General of SMEs Ministry of Industry

PT DI Expands Exports to Africa State owned aircraft maker PT Dirgantara Indonesia (PT DI) said it hopes to expand export market for its aircraft to Africa. Africa is a potential market for aircraft in the next 20 years, company`s spokesman I.P. Windu Nugroho said here on Friday. Africa is an open market for the products of PT DI, including aircraft and aircraft maintenance, and PT DI is competitive in quality, Windu said. He said PT began its first export of CN235 aircraft to Africa in 2007 when a unit of the turboprop plane was exported to Burkina Faso. “The air force of Burkina Faso has operated the aircraft for five years and so far no complain about its quality,” he said. Senegal also has imported two units of CN235 aircraft in

November 2010 and early 2011 brought the number of the aircraft to three units in Africa. Since it started operation in 1976, PT DI has produced more than 300 units of aircraft, including fixed wing and rotary wing aircraft. PT DI has produced 102 units of CN-212 planes under license of CASA (now Airbus Military), both of civil and military versions. PT DI has also produced 122 units of NBO-105 helicopter under license of Germany`s MBB (currently Eurocopter), mostly for the Indonesian military . It also has produced more than 33 units of NBell-412 helicopter and 7 units of NBell-412 EP under license of Bell Helicopter Textron (USA) and 22 units of Super Puma helicopter under li-

Aviation Week said Africa will need around 120 units of 61120 seat passenger jet plane, and 220 units of 30-120 seat passenger planes in the next 20 years. The new units of aircraft are needed to replace old ones and to serve new routes.

cense of France`s Aerospatiale (now Eurocopter). CN-235 was first produced in cooperation with Spain`s CASA and entered the market in 1986. So far production of CN-235 aircraft has reached around 260 units and used by various countries Last month, PTDI delivered two units of CN295, an advanced product of CN235, to the Defense Ministry, which has placed an order for nine units of the new aircraft. CN295 is three meters longer than CN235 aircraft.

meters long. The N219, which is designed to replace Twin Otter, also could maneuver in mountainous ares like Papua. According to Aviation Week, in 2011, Africa needed 770 units of aircraft of various types, jet or turbo propeller planes like CN235. Africa needs aircraft of the CN235 class mostly to serve flights between small airports. An estimated 130 units of turboprop aircraft are needed in various African countries, Windu quoted the Aviation Week as saying

In 2002, PTDI began to receive orders for aircraft components, including components for Airbus and Boeing aircraft. The company is now planning to produce the N219 aircraft, a type for intercity flights that could land on a smaller airfield of less than 500

Aviation Week said Africa will need around 120 units of 61-120 seat passenger jet plane, and 220 units of 30-120 seat passenger planes in the next 20 years. The new units of aircraft are needed to replace old ones and to serve new routes.

December 2012

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Business

Car Production to Jump to One Million Units in 2013 www.watnyus.com

The first locallymade SUV and Pick-up Esemka, were launched after the vehicles were declared road worthy.

small and medium businesses wouldn`t cost a lot. He said some parts were no longer manufactured by the central plant and therefore small and medium businesses were being brought to Indonesia to meet the demand for such products. “They will come and cooperate through a joint venture company that will employ Indonesian workers,” he said. Johnny said the important thing about cooperation was location. “How can we start a new business if we have no location?” he stated.

ew car production in Indonesia is expected to touch one million units in 2013, the director of transportation means at the Ministry of Industry, Suprianto, said on Saturday. Suprianto made the statement while launching the first locallymade SUV and Pick-up Esemka after the vehicles were declared road worthy. “The two cars have passed trial tests and have a right to obtain car registration numbers. So, they are now allowed to be marketed and people who are interested may buy them,” he said. Surprianto said that with national production expected to reach one million units, Esemka cars now had the opportunity to secure a sizeable market share. The Esemka cars were launched as SUVs and Pick-up trucks. Esemka cars were initially produced by vocational students in Solo and were now being manufactured by PT Solo Manufaktur. The car attracted public attention after former mayor of Solo, Joko Widodo, popularly known as Jokowi who is now Jakarta governor, declared it as his official car. PT Solo Manufaktur`s Djoko Sutrisno said the company had

By the end of 2012, Toyota Astra Motor expects to produce 600,000 cars and would also develop Innovative International MultiPurpose Vehicles. Toyota Group will also target an investment of up to Rp13 trillion, which will provide employment to up to 41,000 workers. received 40,000 orders and down payments for 400 units so far. “Following the recent launch, 14 persons have directly ordered the car, with each paying Rp2 million as commitment fee,” he said, adding that monthly production at the company had reached 100 units. Commenting on the price, he said the Rajawali SUV type was being sold at Rp100 million per unit, but would later cost Rp145 million following an increase in the prices of components of the Bima Pick-Up type by Rp65 million. He said 60% of the components used in these cars were locally sourced. “We will continue reducing our dependence on foreign products,” he added. Solo mayor FX Hadi Rudyat-

mo said on the occasion that the achievement had been made possible through extraordinary struggle. “Our predecessors have fought for independence but the younger generation is now fighting to fill the independence,” he said. He also called on the younger generation to not lose hope and said that everything could be achieved through hard work, as shown by the vocational students, who had been able to materialize their dreams of making cars by on their own. “We must be proud of their products and so it is appropriate for us to appreciate them by using them,” he said.

Toyota Group to Bring Small, Medium Businesses

Toyota Group will send a number of small and medium busi-

nessmen working in the automotive industries from Japan to Indonesia to carry out its plan to develop downstream industries in the country, Johnny Darmawan Danusasmita said. “Japan is aware of small and medium business development in Indonesia and of its role in maintaining national economic stability,” the president director of PT Toyota Astra Motor said at a press conference here on Saturday. He said the small and medium businesses would make a contribution and would cooperate with local workers. “We want to focus not only on business or sales, but also manpower empowerment in Japan as well as in Indonesia,” he said. Johnny said the development as well as products needed for

Toyota President Tsuho Jun Kurabe said on the occasion that he would invest to help develop small businesses. “We are determined to develop small and medium businesses, especially in the downstream industry,” he said. Toyota Motor Group president Akio Toyoda supports the plan and has asked the government to accelerate infrastructure development. “We have asked the government to accelerate infrastructure development so that production can be realized soon,” he said. By the end of 2012, Toyota Astra Motor expects to produce 600,000 cars and would also develop Innovative International Multi-Purpose Vehicles. Toyota Group will also target an investment of up to Rp13 trillion, which will provide employment to up to 41,000 workers.

Indonesia Keen on Becoming World`s Fashion Center Indonesia is keen on becoming the world`s fashion centre by 2025, with the advancement of the fashion industry in the country, according to a minister. “Our dream is to make Indonesia a fashion centre of ASEAN. Then, we would like to expand and become the fashion centre of the world,” said Tourism and Creative Economic Minister, Mari Elka Pangestu, on Wednesday. The minister made this statement when she inaugurated the Indonesian Creative Products Week (PPKI), held from November 21 to 25, 2012, at Epiwalk Kuningan. According to her, fashion designers should undergo coaching, training and development programs to improve their skills and understand fashion trends.

Mari Pangestu noted that together with the stakeholders in the fashion industry in Indonesia, the government has started the Indonesia Fashion Week and Jakarta Fashion Week, for fashion designers to showcase their work. “In a country with abundant natural resources and rich culture, creativity in the field of fashion, can combine local taste with international trends,” said Mari. She added that one of the missions of the creative industry is to improve Indonesia`s image in the eyes of the international community. Therefore, Mari said that for Indonesia to become a fashion centre, the country has to be a centre of inspiration too. “To reach this goal, we must start with research and development, trainings and enhancement of human resources and business development,” Mari added.

Inalum Takeover Final State Enterprises Minister Dahlan Iskan said the decision to take over PT Indonesia Asahan Aluminium (Inalum) is final and assured that the company will be in the hands of the country. “With regard to Inalum I can assure it will go to us and be managed by ourselves,” he said at a general lecture at Muhammadiyah University here on Saturday. In reply to a question from a participant the minister said that the government has prepared Rp2 trillion this year and another Rp3 trillion next year for the takeover of the company that has so far been managed by a Japanese aluminum business consortium (NAA) whose contract is sched-

uled to expire in 2013. “Later PT Inalum`s management would likely be handed over to a stateowned company,” he added. Following the conclusion of the contract for PT Inalum, the agreement that 70% of the company`s production must be sent to Japan would no longer be effective. In connection with that re-negotiations would be made, including on price. Regarding raw materials the minister said Indonesia actually has PT Timah that produces it but it is impossible to rely on the domestic production from Bangka island. In view of that, PT Timah has bought a mine in Myanmar to assure alumina raw materials supply which would later be sent to Inalum to meet its raw materials need.

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December 2012

Investment INVESTMENT BRIEFS Govt Provides Tax Holiday To Attract More Investors In yet another effort to attract investment in the industrial sector the Finance Ministry has issued a regulation on tax holiday, an Industry Ministry official said. Under the regulation, tax holiday will be granted to investors who invest at least Rp1 trillion in Indonesia and put at least 10% of the overall planned investment in the national banking industry, the head of the ministry`s center for industrial policy and quality studies, Arryanto Sagala said here on Monday. The investors that are entitled to receive tax holiday are those engaged in the base metal industry, oil refinery, machinery industry, renewable energy and communication equipment industry, he said. He made it clear that the tax holiday will be given for five to 10 years after applicants have realized their entire investment plans and started commercial production. In addition, the government will also provide 50%

tax reduction for two years after the tax holiday period has expired, he said. “Investors can apply for the facilities to the industry minister and the Investment Coordinating Board (BKPM),” he said. It takes 14 working days for the investors to apply for tax holiday, he pointed out. The BKPM has set itself the target of attracting Rp383 trillion investment in 2013 and Rp500 trillion investment in 2014. The agency has projected investment to reach Rp283 trillion at the end of this year, up by 15% from last year`s.

Chinese Businessman To Invest in Lebak A Chinese investor wants to build a cement factory in Lebak , Banten, a local official said. The project will open thousands of jobs for local people and will certainly contribute to increasing the district income, head of the investment sector of the regional development planning board Agianto Ahmad Tahir said in Rangkasbitung, on Tuesday. Agianto said the regional income of the district could reach Rp2.5 billion per year if the project is implemented as scheduled in the Muncang sub-district. Currently the Chinese investor is studying the location where the factory is to be built and the district administration has prepared land for the project.

Investment on Fisheries Set at Rp23t: Minister Science and technology will be applied in the development of the maritime and fisheries in every point of the chains between the up and down stream sectors.

he Ministry of Maritime and Fisheries Affairs (KKP) has set itself the target of Rp23.67 trillion investment in the maritime and fishery sector, a minister said. “Most of the investment is expected to be made in fish culturing activities. Up to the third quarter, investment in the fish culturing had reached Rp15.82 trillion,” Maritime and Fisheries Affairs Minister Sharif Cicip Sutardjo said here on Monday. He said that the value of investment made in the maritime and fisheries was still small as it only accounts for 0.4% of the total investment made in the primary sectors. In the meantime, the value of foreign investment made in the maritime and fisheries sectors only accounted for 0.3% of the total foreign investment, or about 1.2% of the total foreign investment in the primary sectors. In this respect, the KKP will aim at the maritime and fishery development linking the chains of the upstream and downstream fisheries sectors. The minister said that science and technology will be applied in the development of the maritime and fisheries in every point of the chains between the up and down stream sectors. “To increase the added value of the maritime and fisheries sector, the KKP will continue to encourage the cultivation of both the on-farm and off-farm fisheries so that it would have positive impact on the people`s economy and foreign exchange earning,” Minister Sharif said.

Sharif Cicip Sutardjo Maritime and Fisheries Affairs Minister

be prepared a year. Therefore, the KKP this year launched the shrimp and milk fish pond revitalization programs with ponds covering 1,500 hectares. The fish pond pilot projects are scattered in Serang, Tangerang, Karawang, Indramayu, Subang and Cirebon. Minister Sharif said earlier that the industrialization of the nation`s marine and fisheries sectors, through integrated upstream and downstream production, will be accelerated by eight factors. “These eight key factors should be completely supported by the government, the people, and the business community,” he said in a written statement.

To increase the added value of the maritime and fisheries sector, the KKP will continue to encourage the cultivation of both the on-farm and off-farm fisheries so that it would have positive impact on the people`s economy and foreign exchange earning.”

“The eight key factors are guaranteed availability of marine resources; adequate facilities and infrastructure; innovation and application of technology; high added value of marine and fisheries commodities; reliable and competent human resources; well-managed market; investment support from the business community; and favourable government regulation,” Sutardjo continued. He noted that the main objective behind industrializing the marine and fisheries sectors was to support the four pillars of national development, namely progrowth, pro-job, pro-poor, and pro-environment.

He said that if 80% of the population consumed 31.64 kilograms fish per capita per year, about 6 million tons of fish must

“However, the industrialization of marine and fisheries should not happen at the expense of the sustainability of natural resources and the environment,” Sutardjo said.

Thai Investor to Build Cement Plant Thailand Siam Cement Group Plc intends to set up a cement factory in Lebak district, Banten province, to meet local demand. “We project cement production to reach 6,000 tons per year from PT Gama Group and Siam Cement Group which will operate as of 2013,” Chief of the Lebak District Integrated Licensing Service Office (KPPT) Hari Setiono said on Sunday. He said the presence of the Thai company to invest trillions of rupiahs in the cement industry can boost the local people`s economy as well as regional revenues. In addition, the investment will also create job opportunities for thousands of local workers, he added. He positively welcomed any company to invest in Lebak district and expected the presence of the Thai company will have a direct impact on the local people`s welfare. He said the regional administration will ease

the licencing procedure and provide security assurance to the cement investor. “Right now we have established cooperation with the Thai investor to build a cement factory,” he added. He said PT Gama Group has met all licencing requirements including building construction permit and environment licence to build the cement factory in Bayah and Cilograng sub-districts using 2,500 hectares of land. However, PT Siam Cement Group still has to fulfill several of licencing requirements. “We believe both cement factories, which will become the biggest in Indonesia, can fulfill demand from the national market in 2013,” he said. Hari said demand for cement in the domestic market is relatively high to support the construction of infrastructures and facilities. Moreover, the govern-

ment has launched a `Master Plan for the Acceleration and Expansion of Indonesia`s Economic Development (MPE3I) program, he said. “We hope Lebak will be the largest cement supplier for the national market,” he said. Head of the engineering division of PT Gama Group, Handy, said the cement factory will be built starting January 2013 in Bayah and Cilograng sub-districts. PT Gama Group, the largest cement factory in Indonesia, is set to produce four million tons of cement per year. The company will produce cement using limestone and clay which is abundant in Lebak. The two materials can exploited for tens of years. In addition, PT Gama Group also has set up a limestone and clay grinding plant in Ciwandan, Cilegon City. “We have two cement factories in Lebak and Cilegon,” he said.

New investment would certainly help boost development of the district economy and create more jobs for local people, Agianto said. The district administration has improved facilities and infrastructure in the area and simplified licensing procedure and improved security, he added. “I think with improved facilities and infrastructure the district could attract investors to exploit the natural resources in this area,” he said. He said in 2013-2014 five new cement factories are expected to be operational in the regency of Lebak. In 2013, PT Gama Group and PT Balindo plan to build cement factories and three other companies are expected to follow in 2014, he said. The cement projects valued at tend of trillion rupiahs will be located in the sub-districts of Bayah and Cilograng. The license for the five cement factory projects have been issued by the district administration and construction is in progress. Agianto said many investors have been eying business in mining, such as galena rock, quartz sand, and coal mining and in geothermal power development. The regency of Lebak is rich in natural resources yet untapped, he said. Meanwhile, local companies welcome plans by investors to build more cement factories in the district that they do not have to rely on suppliers from other regions in the country. In addition, investors are also expected to be interested in doing business in agricultural, tourism, plantation and livestock sectors, he said.

No Foreign Investors Leaving Indonesia: BKPM Head of the Capital Investment Coordinating Board (BKPM) Chatib Basri said no foreign investor had left the country due to workers` rallies of late. “There is no companies under the BKPM which have left Indonesia due to labor demonstrations of late. Foreign firms have paid salaries than the minimum regional provincial wage (UMP). They are only nervous if demonstrators conduct sweeping at firms and force other workers to join their rallies,” the BKPM chief said on Monday. He said that foreign companies were not affected by the rallies themselves. They only affected small companies, namely local or domestic companies. “So, the rallies themselves pose no problem as long as they are

held without violating the law,” Chatib said at the State Palace. With regard to a brick factory which reportedly stopped production, the BKPM head said the factory had halted its production temporarily. “As far as I remember they have never said they will leave Indonesia. I have talked to its CEO. They never said they will leave Indonesia. What they are doing is temporarily closing the factory. It is a temporary closure because the company continues to be disturbed by demonstrators,” he said. He said that up to Monday, he had never received yet any letter from foreign companies saying they would close their business. Chief economic minister Hatta Rajasa said on Saturday that no foreign investors had plans to leave the country following re-

cent labor demonstrations. “I have checked with the head of BKPM (the Investment Coordinating Board) and (found) no investor has said such a thing,” he said at a dialog on economic nationalism here on Saturday. Workers have recently held rallies in many parts of the country to demand wage increases. Hatta said the workers` demand for an average of Rp2 million per month across the country was reasonable and must be met. “I believe employers could understand it,” he said. With regard to companies that could not meet such a raise in wages, he said he would ask the manpower minister to issue a regulation about this. He said the state is ready to reduce its revenues from corporate taxes, if necessary, to allow companies to continue operating their businesses.

In the meantime, Vice President Boediono has said that firm actions have been taken against workers involved in anarchism during demonstrations. He said when opening a High Level Conference on Indonesian Investment 2012 here on Tuesday that while labor demonstrations are allowed actions must be taken against anarchism. “The law must be enforced against excesses such as intimidation,” he said. Boediono admitted that investors had been concerned over the demonstrations. He said the government remained committed to keep improving investment conditions in the country by among others providing legal certainty and better infrastructure. He said the government would also continue improving the welfare of workers which has also been the government`s priority.

December 2012

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Profile

JEFFREY ADRIAN

I Am Expensive Since I Have No Rivals Indonesia to host the Red Bull Air Race World Championship— that is the goal of Jeffrey Adrian, a senior pilot who is now realizing his passion to become an athlete of extreme sports called air racing.

effrey Adrian, a former Garuda pilot, has a desire to “sell” Indonesia by making this country the host of the prestigious air racing event, Red Bull Air Race. When Jeffrey decided to move out of his comfort zone as a seasoned pilot with 13 years of experience at Garuda Indonesia, he decided to learn aerobatics at the Executive Flyers Aviation Boston, United States, with, yes, his own money. Jeffrey calls his move “letting go something big to gain something greater.” Jeffrey has spent about Rp 5.5 billion (over $500,000) for two years of aerobatics training. He still needs to take one last year of training that will cost him another Rp 2.5 billion. He is also set to spend Rp 6 billion to buy an air race plane. Not a small sum, for sure, but on the other hand he will soon become one of only 16 Red Bull Air Race athletes in the world, the second in Asia (the other one is a Japanese). In developed countries, the cost is partly covered by the government and private companies. However, Jeffrey is aware that the Indonesian government has other priorities in the sports field. “Actually, I want to give something to this country but have received little support. Yet, we can’t

In 2008, Jeffrey submitted to the organizers of Red Bull Air Race World Championship for Indonesia (Bali) a proposal to host the race. But there was no response from the government and private sector to support the event. Unfortunately, his idea was ‘copied’ by his ex-colleague who proposed Malaysia to be the host country in 2013.

just complain, we have to try on our own first,” said Jeffrey. Jeffrey said that he sold his collection of branded motorcycles, powerboat, and luxury cars to pay for his training. He even plans to sell one of his houses in order to buy the plane if he cannot find sponsors. “I will do my best, I plan to finish what I started,” he added. In other countries, the Red Bull Air Race plane is the arena of product branding because it is a flying billboard. Jeffrey sees it as a huge business potential. Any institution could advertise their product on the plane and it would be a form of prestigious

branding. Besides, the attraction of aerobatic plane is certainly an expensive entertainment that promises extraordinary showbiz prospects. “Aerobatic show can be presented in any celebration by anyone who can pay. It must be pricey since there is no ‘other store’ nearby,” said Jeffrey. “In America, aerobatic sport is used for several products’ branding. A one-time flight can fetch up to Rp 500 million. It requires high investment, yet it will produce profit quickly,” said Jeffrey. He added, “My price is surely expensive, since my expertise carries the risk of death.” Jeffrey also pointed out said that in the US jobs that put people under less oxygen supply are the highest paying jobs, such as miners, pilots and others. Jeffrey explained that there are some requirements to be accepted as a Red Bull air race athlete. First, the person must be a representative of a country, so there should be a support letter from the government. A second requirement is to leave the past job. The third is to have a minimum of 7,500 flying hours obtained within a period of 10 years. So, a new pilot could not right away be an athlete of Red Bull Air Race. The fourth is the consent from the family. For Jeffrey the permission from his family is the most important because it is a form of prayer. The last requirement is to finish three years of training and to meet all qualifications. In 2008, Jeffrey submitted to

the organizers of Red Bull Air Race World Championship for Indonesia (Bali) a proposal to host the race. But there was no response from the government and private sector to support the event. Unfortunately, his idea was ‘copied’ by his ex-colleague who proposed Malaysia to be the host country in 2013. He said, “The Malaysian government approved the idea and was ready to support it. Even more, they were ready to pay me to be an athlete representing Malaysia. I was offered $2 million, comprising $1 million for the purchase of an aircraft and one year of training, and the other $1 million for air race development in Malaysia. I was also to be given a salary of $25,000.” All these tempting offers were rejected by Jeffrey. “I rejected because my heart found it unacceptable. I’ve come this far for Indonesia, it is unfeasible to ‘sell’ myself to another country,” he explained. Jeffrey is now taking break off from school to go back to Indonesia to seek for support and sponsorship. “The school is very dear to me. People who enter the US as student pilots should get a diploma if they want to go home later. Otherwise, they’ll be dropped out. It is the impact of 9/11 tragedy, and US doesn’t want it to happen again,” said Jeffrey.

Nonetheless Jeffrey is confident that he will complete his training with or without sponsorship.

Red Bull Air Race

Red Bull Air Race, established in 2003 and created by Red Bull, is an international series of air races in which competitors have to navigate a challenging obstacle course in the fastest time. Pilots fly individually against the clock and have to complete tight turns through a slalom course consisting of pylons, known as “Air Gates”. The Red Bull Air Race World Championship is one of the toughest and most demanding sports competitions that exist and only the best pilots in the world have the skill and stamina to take part and be successful at it. Prospective pilots must first make it through the rigorous selection process and to do so, they must have the experience, skills and personality to join the elite group who compete in this global motorsports championship. Simply being a fast pilot is not enough – they must also have the skill to navigate complex obstacle course just meters above the ground. This means flying with utmost precision taking care not to collide with any of the 20 meter-high Air Gates while at the same time racing against the

Jeffrey has spent about Rp 5.5 billion (over $500,000) for two years of aerobatics training. He still needs to take one last year of training that will cost him another Rp 2.5 billion. He is also set to spend Rp 6 billion to buy an air race plane. Not a small sum, for sure, but on the other hand he will soon become one of only 16 Red Bull Air Race athletes in the world, the second in Asia (the other one is a Japanese).

clock at speeds that can reach up to 370 km/hr. Fitness is also paramount, because the pilot has to deal with the high acceleration forces which have a tremendous impact on the body, often having to cope with forces of up to 12G.

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December 2012

Pictorial Event The 5th Jababeka International Cultural Festival Jababeka held The 5th Jababeka International Cultural Festival (JICF) at Movieland Jababeka City, Cikarang, on Saturday (24/11) featuring art and cultural performances. Jababeka as an industrial area that has more than 1,500 tenants from within and outside Indonesia celebrated the cultural differences that exist so that all people of any country can live peacefully side by side in Jababeka. The guests were, among others, Titus Weber, Sultan Sepuh Cirebon XIV Pangeran Raja Adipati Arief Natadiningrat, Vietnamâ&#x20AC;&#x2122;s ambassador to Indonesia Pham Quang Vinh, representa-

tives of West Java Governor, representatives of Bekasi regent and others. Stunning performances on that event were the parade of traditional clothes from President High Schoolâ&#x20AC;&#x2122;s students, a marching band, Reog Ponorogo, Liong and Barongsai by FOBI, a special performance by Russian students who sang and danced Russian Volka dance, Melayu dance by Brunei Darussalam delegations, and more others.

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December 2012

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Pictorial Event Launching of APEC 2013 New Logo

Commemoration of World AIDS day with Durex The President Post/Rians Rivco

The President Post/Rians Rivco

The Ministry of Foreign Affairs has officially introduced the APEC logo for Indonesia’s APEC chairmanship on December 7. The logo consists of 21 bamboo shoots sweeping upward on a blue background. The bamboo shoots represented the 21 APEC economies while the upward sweep visualized the need to develop global economic growth, the ministry said in a statement. Bamboo was picked to symbolize resilience, strength and flexibility. The launching was attended by officials of Indonesian government, Indonesian businessmen who active in the APEC Business Advisory Council (ABAC), as well as senior officials from other APEC members. On APEC 2013, Indonesia aims to promote investment in infrastructure; empowering key groups that have the potential for national economy growth such as SMEs development, women and farmers, and ensure that the international market is always open to Indonesia.

In commemoration of World Aids Day, Durex as a number one condom brand in the world held fun bike event in collaboration with bike2work community. The event was held on Sunday, December 2 at Sudirman-Thamrin, which also coincides with Car Free Day program. Durex also runs a global campaign on the prevention of HIV and AIDS. As part of the campaign, Durex has promised to donate one condom for every user who tweets a message about HIV and AIDS using the #1share1condom hashtag. The company will also donate one condom to global and local charities that share Durex’s mission of combating HIV-transmission - like dance4life - for every user who shares the Durex World AIDS Day image or video found on the Durex Facebook page.

Jababeka Agent Gathering The President Post/Heros Barasakti

Inauguration of President Continuing Nurse Education and Training Center

National Convention of Public Relations Indonesia The President Post/Heros Barasakti

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Jababeka held an agent gathering on Wednesday (5/12), at the Hollywood Plaza, Jababeka City, Cikarang. In this event Jababeka Residence promoted its units of Exclusive Pavilion Simprug, luxurious cluster of Beverly Hills, Ruko Movie Boulevard, and Dharmawangsa Residence. Arya, business manager of Dharmawangsa Residence, was promoting four house units with an area of 200m2, 380m2 and 482m2 with the Jababeka Golf and Country Club the backyard. Its prices are in the Rp 2-4 billion range. President University Education Foundation held an inauguration ceremony of President Continuing Nurse Education and Training Centre (PCNETC) on Wednesday (12/12) at Jababeka, Cikarang. Present as the guest speaker was, Suprianto, director general health development efforts of Health Ministry, Wasista Budiwaluyo, the Secretary General of Indonesian Hospital Association (PERSI), and Dewi Irawaty, Ph.D, Chairman of the Indonesian National Nurses Association. Prof Joss Riono, chief education PCNETC, said that PCNETC training institutes are equipped with training facilities in accordance with international standards and lodging facilities, libraries, IT and comfortable classrooms.

Public Relations Society of Indonesia (Perhumas) held a National Convention of Public Relations Indonesia themed “Reputation in an Era of Transparency” Towards Honest & Independent Indonesia. The event was held to celebrate 40 years of Perhumas and was held on December 9 - 12, at Hotel Grand Sahid Jaya Jakarta. The speakers were , among others, Freddy Tulung, Director General of Information and Public Information Ministry of Communication and Information, Rhenald Kasali, Chairul Tanjung, Erick Thohir, Datin Shameem binti Abdul Jalil, and others.

Booker Gathering at Delonix Hotel The President Post/Heros Barasakti

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Dialogue on Human Rights between Indonesia and Norway Human Rights Dialogue between Indonesia and Norway was officially opened on November 26, by Foreign Minister Marty Natalegawa. The opening ceremony was attended by Prince Hakoon Magnus of Norway, Princess MetteMarit, and Norwegian Foreign Minister, Gry Larsen. Indonesia-Norway Human Rights Dialogue has been going on since 2002. This year, the dialogue addressed issues rang-

ing from human rights, climate change, forestry, environment sectors, and so forth. Prince Hakoon Magnus said that some principles for enhancing bilateral cooperation between Norway and Indonesia are respect, openness and implementation which are valuable aspects for both governments. Those, he added, can guarantee that both countries can continue to make a success and mutual cooperation.

Delonix Hotel held Booker Gathering (BG) on Wednesday (5/12) at D’Lounge Delonix Hotel. It is an annual event held for the second time as a form of appreciation to the staff who booked the hotel for corporate purposes. Ratu Neilla, General Manager of Delonix, in her speech said she really appreciates and compliments consumers for their trust in Delonix Hotel. The event was attended by consumers from several companies, among others Yamaha, Nissan, Panasonic, etc.

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December 2012

Pictorial Event Indonesia hosted the 4th Ministerial Conference Organization of Islamic Cooperation, themed “Women’s Role and Regulation in Economic Development of OIC Member Countries”. The conference was opened by Vice President Boediono and the Minister of Women’s Empowerment Linda Amalia Sari Gumelar, at the Ritz Carlton, Mega Kuningan. In his opening speech, Vice President Boediono said that the conference this time is to continue the good performance by OIC at the Tehran Declaration, and can benefit not only the Muslim community but the entire society in the world. He also pointed out that gender equality would eventually deliver further affects on development of women’s capacity thus in other sectors such as education, health and politics.

Djarum Super Mild Talk In Jababeka

OIC 4th Ministerial Level Conference He said that Indonesia has put this agenda by taking concrete actions in its mid-haul development plans from 2010 to 2014, adding that gender mainstreaming was among three ones set in the plans. The other two were sustainable development and good governance in the government mainstreaming.

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The conference was attended by 160 delegates from OIC member states, the United Nations and related agencies.

Djarum Super held another Talk In (TI) event at the Hollywood Plaza, Jababeka City, Cikarang on Monday (10/12). TI event entitled’’ Managing laugh to be Business Commodity” was participated by Mongol, a comedian at Standup Comedy Show. Mongol shares few things at the event. He said that being a standup comedian (comic) is a very promising job as a lot of people need to be entertained. As a comic, Mongol said, one should very careful when choosing a theme that will be performed to entertain the audience. Mongol added, “there are some elements to avoid, such as ethnic, race, and religious issues, physical abuse and politics.” The event was enlivened by the performance of Benny Likumahuwa Project and the band.

Manufacturing Indonesia 2012 The President Post/Heros Barasakti

UN Women Executive Director Michelle Bachelet Visits Indonesia The President Post/Rians Rivco

Executive Director of UN Women Michelle Bachelet conducted her first official visit to Indonesia, December 3-5. Bachelet was a keynote speaker on December 4 at the 4th Ministerial Conference on Women`s Role in the Development of the Organization of the Islamic Conference (OIC) Member States, at the invitation of President Susilo Bambang Yudhoyono. During the visit, Bachelet conducted several meetings with Vice President Budiono, Dr. Marty Natalegawa, Minister of Foreign Affairs, and Ms. Linda Amalia Sari, Minister of Women’s Empowerment and Child Protection. The UN Women Executive Director also met with civil society organizations supporting women and girls’ empowerment, engaged in a dialogue with prominent Islamic scholars, and addressed the media.

Manufacturing Indonesia carries the unique distinction of being one of the largest and most comprehensive events for the manufacturing sector. Featuring participation from 26 countries, this show aims to serve the South-East Asian market where companies from diverse industry segments display their wares to an international clientele. Indonesia, being Asia’s third fastest growing economy after China and India, acts as the perfect backdrop with the Jakarta International Expo center playing host to some 18 international pavilions. Visitors comprise of a large number of professionals and decision makers from innumerable industries who religiously attend the event each year to explore business possibilities in a dynamic business environment.

Tree Lighting Ceremony & Charity Event at Grand Sahid Jaya The President Post/Reza Ganesha

Grand Sahid Jaya organized a “Tree Lighting Ceremony & Charity Event” on Friday (4/12). Chairman of Sahid Group Prof Sukamdani Sahid Gitosardjono, accompanied by Juliah Sukamdani vice president Sahid Group, and the board of directors of Sahid Group lit the Christmas candle on the event. At the occasion, Grand Sahid Jaya invited orphan children choir from Parapatan orphanage. The employees’ choir also enlivened the event.

Inauguration of Sasono Mulyo Ballroom at Le Meridien Hotel The President Post/Reza Ganesha

Hotel Le Meridein inaugurated Sasono Mulyo Ballroom on Friday (30/11). The ballroom has been completely renovated so it has a “new face” now. With an area of 714 m2, this ballroom can accommodate approximately 1,200 people, and with its new design can facilitate a variety of major and important events because it has an entrance that is connected directly to the main road. Sasono Mulyo Ballroom can be divided into three soundproofed rooms and has been designed to match the sound system for events such as music concerts, presentations, and audio-visual events. Besides, Sasono Mulyo also features WiFi and natural lighting.

December 2012

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Pictorial Event The Turkeys Evening Cocktail by Amcham AmCham (American Chambers) held The Turkeys Evening Cocktail on Tuesday, November 20, which was attended by its members. The event was also a gathering before the completion of AmCham Indonesia Thanksgiving Day Golf Tournament. The President Post/Rians Rivco

Kompas CEO Forum

IABC Gathering Night The President Post/Reza Ganesha The President Post/Reza Ganesha

Kompas Gramedia, Ciputra Group, Bank Mandiri, and Aneka Tambang held Kompas CEO Forum for the third time, themed “CEO Talking, Cabinet Listening: Growing Higher or Stagnant”. The 3rd KOMPAS CEO Forum was held at Cendrawasih Room, Jakarta Convention Center, on November 28. Attended by around 100 CEOs, this event was opened by Jakob Oetama and presented speakers Finance Minister Agus Martowardojo, Governor of Bank Indonesia Darmin Na-

sution, and Chairman of BKPM M. Chatib Basri as speakers. The second session presented Ciputra (Ciputra Group owner), Zulkifli Zaini (Managing Director of Bank Mandiri), and Alwinsyah Lubis (President Director of PT Antam). The third session featured a discussion between the CEOs and Vice President Boediono, accompanied by CEO of Kompas Gramedia, Agung Adiprasetyo. Present at the event were Minister of Trade Gita Wirjawan, Minister of Mohammad S Hidayat, and Minister for Economic Affairs Hatta Rajasa.

IABC (Indonesia Australia Business Council) held a Gathering Night on Wednesday (21/11) at Intercontinental Hotel and attended by its members. In this event there was also tourism promotion of Lombok and Sumbawa.

ASEAN–EU Cooperation to Achieve MDGs The President Post/Rians Rivco

Breakfast Dialogue Financial Club Jakarta held a breakfast dialogue, themed “Prospect & Development of Indonesia Trade” with Gusmardi Butami, Director General of National Export Development, Ministry of Home Affairs as a speaker and Justin Doebele, Chief Editorial Advisor Forbes Indonesia as a moderator. In his presentation Butami revealed that Indonesia’s economy is growing positively because 64% of GDP comes from domes-

tic consumption, therefore Indonesia is less dependent on exports. As for the prospects and further economic development, Butami said, “Indonesia needs more qualified human resources to be the leader of the nation, and the infrastructure must be improved, as well as focusing on value-added products to improve the position in international trade.”

The President Post/Reza Ganesha

The progress made by the ASEAN Community Statistical System Committee and ASEANstats – ASEAN Secretariat Division in charge of the collection, production, and dissemination of regional statistics – over the last four years of cooperation with the European Union (EU) is highlighted at a closing conference of the EU-funded EU-ASEAN Statistical Capacity Building (EASCAB) Programme taking place at the Dharmawangsa Hotel on Tuesday, November 27. The event brings together ASEAN ambassadors, Heads of the National Statistical Offices of the ASEAN Member States, and representatives of line ministries, central banks and customs departments. It features key note speeches from Dr Surin Pitsuwan, Secretary-General of ASEAN, and Colin Crooks, Deputy Head of Delegation, European Union Delegation to Indonesia, Brunei Darussalam and ASEAN. The ASEAN Community needs reliable and timely statistical data that are comparable across all ten ASEAN Member States to help formulate regional policy and monitor integration in the region and the world. This is also essential for governments, businesses, academics, and civil society groups to improve decision-making. The EASCAB Programme assisted both ASEANstats and the national statistics offices of all ten ASEAN Member States to produce reliable and comparable statistical data through serious efforts to harmonise statistics for the trade in goods, trade in services, foreign direct investment, and other key sectors of development, including the publication of the first ever regional report on the status of ASEAN progress on the Millennium Development Goals (MDGs). The EASCAB Programme also made possible the initial release of the 2012 ASEAN International Merchandise Trade Statistical Yearbook which is a comprehensive compilation of harmonised trade statistics for 2010-2011.

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2012 Highlights

SECTION C December 2012 No. 39 www.thepresidentpost.com

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with drugs, alcohol and ex-husband Bobby Brown marred her star power, died on February 11. She was 48.

The Queen’s Diamond Jubilee

The Queen’s Diamond Jubilee After an eventful 2011, in which she saw her grandson William marry Kate Middleton, Queen Elizabeth had two major events celebrated in 2012. She turned 86 on April 21, and on Feb. 6 marked the 60th anniversary since her ascension to the throne. She and Prince Philip marked the Diamond

Jubilee on the home front, touring Britain; the rest of the royals fan out across the globe. Prince William and Kate visited countries like Malaysia and Singapore, while Prince Harry made a solo trip to the Caribbean. Prince Charles and Camilla’s itinerary includes Australia, New Zealand and a May tour of Canada.

Whitney Houston Died Whitney Houston, the iconic American singer whose battles

At her peak, Houston was the golden girl of the music industry. From the middle 1980s to the late 1990s, she was one of the world’s best-selling artists. She wowed audiences with effortless, powerful, and peerless vocals that were rooted in the black church but made palatable to the masses with a pop sheen. Her success carried her beyond music to movies, where she starred in hits like “The Bodyguard” and “Waiting to Exhale.” She had the perfect voice and the perfect image: a gorgeous singer who had sex appeal but was never overtly sexual, who maintained perfect poise. She influenced a generation of younger singers, from Christina Aguilera to Mariah Carey, who when she first came out sounded so much like Houston that many thought it was Houston. But by the end of her career, Houston became a stunning cautionary tale of the toll of drug use. Her album sales plummeted and the hits stopped coming; her once serene image was

shattered by a wild demeanor and bizarre public appearances. She confessed to abusing cocaine, marijuana and pills, and her once pristine voice became raspy and hoarse, unable to hit the high notes as she had during her prime.

Java Jazz 2012 Java Jazz 2012 (March 2-4) boasted an impressive lineup that includes some of the finest jazz musicians in the world, such as Herbie Hancock, Pat Metheny, Al Jarreau, and Erykah Badu. But it’s not just international acts. Over a hundred Indonesian musicians also showed the crowd what they’re made of. Abdul and The Coffee Theory, Monita Tahalea Quartet, and Mailq & D’Essentials were just some of the home-grown talent taking to the festival’s stages.

Putin Becomes President of Russia for Third Time Vladimir Putin became Russia’s president for the third time (May 6). Putin succeeded Dmitry Medvedev, who was his prime minister during his two terms as president.

Al Jarreau at the JAVA Jazz 2012

Facebook Goes Public The site, which was born in a dorm room eight years ago and has grown into a worldwide network of almost a billion people, on May 18 made the most talked-about stock market debut in years. Facebook became a public company, raising $14 billion in its initial public offering, at $38 a share, which gives the company a value of $104 billion. This

makes Facebook the third-largest public offering in the history of the US, behind General Motors and Visa.

NKOTBSB Mesmerized Jakarta Appearing in their One Night One Stage joint concert on June 1, NKOTBSB - the 1980s to 1990s Boy Band sensations: New Kids on the Block and the Backstreet Boys, – gave Jakarta audiences a spectacular two-hour show held

at the Grand Mata Elang International Stadium at Ancol Dreamland in North Jakarta. The two bands performed no less than 30 songs for their Jakarta performance, enhanced by spectacular stage décor, costumes, lighting, and sound system.

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December 2012

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2012 Highlights www.goodfon.com

Spain won the UEFA Euro Cup 2012

UEFA Euro 2012

OK, so it’s not as big as the World Cup, but people around the globe will still watched topflight soccer talents, including Spain’s David Villa, Portugal’s Cristiano Ronaldo and Germany’s Miroslav Klose, play in the UEFA Euro Cup on June 8-July 1. Spain celebrates again when they win 4-0 from Italy at the final. Spain won the 2008 tourney, which was co-hosted by Austria and Switzerland. This year’s contest was co-hosted by Poland and Ukraine, who as hosts automatically qualify for the tournament. After finishing in the final six in the 2006 World Cup, Ukraine will appear in its first European soccer championship.

London Olympics

Athletes from more than 200 countries on July 27-August 12 were descended on London for the Olympic and Paralympic Games. With this event, the British capital became the first city to have hosted the Olympics three times in the modern era (the others were 1908 and 1948). About 10,820 athletes from 204 nations participated in the 302 events in 26 Sports. The 2012 London Olympics officially kicked off on 27th of July in a Royal style with the world

witnessing the greatest ceremony of all times. English film director and producer Danny Boyle directed the opening ceremony of the games which was named as Isles of Wonder. Queen Elizabeth II officially opened the Olympic Games.

Russia Enters the World Trade Organization After 19 years of negotiations, Russia on August 22 became the newest member of the World Trade Organization (WTO). Russia has cut tariffs on imports and set limits on export duties as part of a series of reforms enacted to qualify for entry into the international trading arena. Expectations of membership include an increase of 3% in the Russian GDP, more foreign investment, and a doubling of US exports to Russia-as long as trade relations are normalized through the lifting of the 1974 Jackson-Vanik amendment.

Hillary Clinton’s Working Visit to Indonesia US Secretary of State Hillary Clinton arrived in Indonesia for a working visit on September 3. After arriving at Halim Perdanakusumah airport, Clinton immediately went to see Indonesia’s Foreign Affairs Minister Marty

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The 2012 London Olympics

Natalegawa’s to discuss several matters. The focus of the discussion was the implementation of the two countries’ bilateral strategic partnership, following a previous agreement between President Susilo Bambang Yudhoyono and US President Barack Obama.

SAIL Morotai

After the success of Sail Bangka Belitung in 2011, Indonesia on September 14 geared up for Sail Morotai 2012. Located on the beautiful sea of North Maluku, Sail Morotai provided more adventures combined with splendid scenery that refreshed body and mind. A total of 133 yachts from 22 countries took part in Sail Morotai on July 28. There were 47 yachts from Australia, 20 from the US, nine from Canada, eight from New Zealand, seven from the Netherlands, and six from England, among others. The rally participants were divided into two teams, which would take two different routes to Indonesia. The eastern route would pass through Saumlaki, Banda, Buru, Ternate, Wakatobi and Takabonerate, while the western route would be through Kupang, Alor, Lembata, Ende, and Riung.

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Obama re-elected

Jakarta’s Gubernatorial Elections

The ex-mayor of Solo, Joko Widodo, prevailed over incumbent Fauzi Bowo at the election on September 20. Jokowi was supported by a plethora of artists, scholars, activists and many others. He received widespread support from the grass roots in the capital. Jokowi positioned himself as the “people’s man” with analysts saying that this has been the key reason why he did well in this tight race. Many of the key issues in this election - jobs, corruption, good governance and quality of life – were raised during the election.

Hurricane Sandy Shatters Eastern Part of the US The massive storm that started out as Hurricane Sandy in October slammed into the East Coast and morphed into a huge and problematic system, killing at least 74 people in the United States. Tens of thousands of people were ordered to evacuate in anticipation of the storm, including 375,000 in lower Manhattan and other parts of New York City. At least 50,000 were ordered to evacuate in Delaware alone and 30,000 in Atlantic City, N.J.,

where the city’s 12 casinos were forced to shut down for only the fourth time in the 34-year history of legalized gambling there.

US Presidential Election President Obama was reelected, narrowly defeating Republican nominee Mitt Romney. Obama prevailed in both the electoral college (303 to 206) and the popular vote (50% to 48%), buoyed largely by taking several crucial battle states, including Colorado, Iowa, Ohio, New Hampshire, Virginia, and Wisconsin (Nov. 7). Shortly before 1 a.m., Romney delivered his concession speech, saying, “This is a time of great challenges for America, and I pray that the president will be successful in guiding our nation. The nation, as you know, is at a critical point. At a time like this, we can’t risk partisan bickering and political posturing. Our leaders have to reach across the aisle to do the people’s work. And we citizens also have to rise to the occasion.”

UN Approves NonMember State Status for Palestine The United Nations General Assembly on November 29 approved an upgrade from the

Jennifer Lopez live in Jakarta

Palestinian Authority’s current observer status to that of a non-member state. The vote comes after Palestinian President Mahmoud Abbas spoke to the General Assembly and asked for a “birth certificate” for his country. Of the 193 nations in the General Assembly, 138 vote in favor of the upgrade in status. While the vote is a victory for Palestine, it is a diplomatic setback for the US and Israel. Having the title of “non-member observer state” will allow Palestine access to international organizations such as the International Criminal Court (ICC). If they join the ICC, Palestine can file complaints of war crimes against Israel. In response to the UN vote, Israeli Prime Minister Benjamin Netanyahu announces that Israel will not transfer about $100 million in muchneeded tax revenue owed to the struggling Palestinian Authority and will resume plans to build 3,000-unit settlement in an area that divides the north and the south parts of the West Bank.

Jenifer Lopez “Dance Again World Tour” Jennifer Lopez wowed thousands of fans in Indonesia on

30 November, but they didn’t see as much of her as concertgoers in other countries — the American pop star toned down both her sexy outfits and her dance moves during her show in the world’s most populous Muslim country. Lopez’s “Dance Again World Tour” was performed in Jakarta, in line with promises Lopez made to make her show more appropriate for the audience. Lopez changed several times during her 90-minute concert along with several dancers, who also dressed modestly without revealing their chests or cleavage.

The End of the World Many groups and cultures have prophesied the end of the world, but the Mayan prediction seems to hold the most popular interest. Dec. 21, 2012, marks the conclusion of a significant period in the Mesoamerican Long Count calendar, and is thus thought to herald the end of life as we know it. Some observers tell us to expect a spiritual transformation rather than Armageddon, while Mayan scholars tell us to expect business as usual, saying the Mayans never made any claims about the apocalypse.

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December 2012

Living www.innovativescholar.com

U.S. author Marc Prensky defines digital natives as those born into an innate “new culture” while the digital immigrants are old-world settlers, who have lived in the analogue age and immigrated to the digital world.

he war between natives and immigrants is ending. The natives have won. It was a bloodless conflict fought not with bullets and spears, but with iPhones and floppy disks. Now the battle between the haves and have-nots can begin. The post-millennial “digital native,” a term coined by U.S. author Marc Prensky in 2001 is emerging as the globe’s dominant demographic, while the “digital immigrant,” becomes a relic of a previous time. The digital native-immigrant concept describes the generational switchover where people are defined by the technological culture which they’re familiar with. Prensky defines digital natives as those born into an innate “new culture” while the digital immigrants are old-world settlers, who have lived in the analogue age and immigrated to the digital world. The author of “Teaching Digital Natives,” whose success pushed him onto the speaking circuit, says the explosion of technology over the last 10 years is just the start of a symbiotic new world. Computers and handsets are becoming an extension of body and mind, creating a Cyborg-like population. Prensky cites the 100-meter runner Oscar Pistorius, an athlete with prosthetic legs, as an example of how technology is used to enhance our lives. He told CNN: “For humans, what used to be this body of flesh and bone, all that is now just the center... Being human is a moving target.” Prensky says that at no time in history has technology moved so fast. Today the latest

lations. Last year, Finnish phone maker Nokia released a range of smart phones targeted at consumers in emerging markets, particularly in Asia, to compete with cheaper Android devices. But Shah argues bombarding a country with technology and infrastructure is not a rounded solution to the digital poverty problem. India, for example, has connectivity and access in abundance, but the country continues to suffer from a generation of “digitally poor classes.” He argues that simply providing the equipment does not help young people understand how that technology can better their lives without education and training.

high-tech gizmos can be passe even before hitting the shop floors. In the past – during the postindustrial revolution era, for example – accelerating technology has plateaued. So, with the meteoric rise of new social media outlets including Facebook, Twitter, YouTube and Skype, history suggests the world is overdue for a slowdown. But Prensky says this time, any slowdown in the digital age is a “myth,” as innovation will only press forward “faster... And faster and faster.” The explosion of technology over the last 10 years is just the start of a symbiotic new world. Computers and handsets are becoming an extension of body and mind, creating a Cyborg-like population.

He told CNN: “We are not going through a transition to another faze of stability, and that is the key point. People will always be behind now and that will be a stress they have to cope with.” Connecting with one another in the modern world requires a knack for social networking and texting, which is the norm for the digital native. But for the immigrant, it can be akin to learning a whole new language. For humans, what used to be this body of flesh and bone, all that is now just the center. Prensky illustrates his point with former director of the CIA David Petraeus. In November, he was embroiled in a scandal that revealed he had an affair. The FBI uncovered the affair while it investigated e-mails that Broadwell allegedly sent to a Petraeus family friend, Jill Kelley. Prensky labels this naivety by immigrants as “digital stupidity” – by assuming that when people decide to post online or send e-mails, they believe privacy is automatically applicable. “People get frightened by change and they should

What Does It Mean to Be a Digital Native? be. They need courage to face the future these days, especially those who feel left behind.” Prensky said. “People adapt instinctively and humans are very good at that. The young people live in the context; the older people see the changing context and struggle.” As technology filters into every corner of the globe and tech cities spring up in some unlikely plac-

SOLT’s “Piles of Oak Wood” The President Post/Rians Rivco

Fine cuisine, elegant service along with unique exclusive interior are certainly worth the price of food in this restaurant, which is intended for the upper middle class. SOLT (Society of Life Top) is ready to become one of the favorite restaurants of Jakartans with the semi-fine-dining concept. As its name, SOLT is a perfect place for the upper middle class to just get together with family, friends or business associates while enjoying sumptuous Italian cuisines which are the specialties of SOLT. As we all know, the restaurant business in Indonesia, especially in Jakarta, is growing rapidly so that competition is very tight. However, SOLT is very confident they will have a special place in the hearts of Italian cuisine lovers. SOLT provides uniqueness in its interior, delicious food and warm and elegant services. The entire staff members of SOLT are required to give the best service and be communicative so guests will feel more comfortable and convenient. Located at Jl. Kemang Raya 31, SOLT offers a unique interior design with the concept of Oak wood pile. “The concept of our interior features Oak wood as the base. This was inspired by piles of wood scattered in Italy such as Venice, Borga Nari, and around Rome,” said Maulana Siswanto, the operations manager of SOLT. According to him, the Italian architectural of wood pile has existed since the days of neo-renaissance and is used as home decoration for the middle class since 1856 or better known as the Italian Villa style. SOLT has 111 variants of Italian menu that can be one of the people’s favorite choices, starting from northern Italy to southern Italy, both of which have the characteristics of Mediterranean cooking style. The menu starts from a variety of gorgeous appetizers; one of them is Insalata Caprese, comprising fresh sliced tomatoes with buffalo cheese, which

is tempts you to go to the next item in the menu. Pasta dishes are also available for vegetarian; one of them is Penne Siciliana, the penne pasta with chunks of egg plants and tomato cream blended perfectly. For the main course, there is Amalfitana Gamberoni, which is presented with three big pieces of shrimp with risotto. For dessert it is Fioriera, which has a texture similar to Tiramisu and looks stunning with fresh cherry fruits on the topmost layer. Fine cuisine, elegant service along with unique exclusive in-

terior are certainly worth the price of food in this restaurant, which is intended for the upper middle class.

es from Bangalore to Tel Aviv, a new gulf is emerging to separate the digitally savvy from the disconnected: Poverty. In India, over two-thirds of the population live on less than $2 a day, according to the World Bank. But a United Nations report still says that mobile phones are more common than toilets, with nearly half of India’s 1.2 billion population armed with a handset.

Nishant Shah, a director at the Centre for Internet and Society in India, told CNN that defining natives and immigrants by generation is a “serious concern.” According to Shah, Prensky’s views were formed from the “privileged” position of living in the U.S. Shah added: “[Prensky’s] observations may describe a generation gap that the U.S. faced, but if you transplant the same definition to other parts of

the world, natives are sometimes indistinguishable from immigrants.” The real fear for Shah is the new hierarchies created by digital literacy and the class systems that will be shaped by access to digital technologies. As mobile networks extend their reach and areas become increasingly urbanized, Western tech companies are seeking to tap markets with large popu-

Shah told CNN: “Just because young people have tech access in India, it doesn’t make them digital natives.” He added, “It creates digital outcasts – people whose supposed problem of access to the world has been resolved.” Prensky, however, believes a “networked planet” is a sign developing nations will soon close the digital divide. Even those who don’t yet have the technology still know that it exists, and will have it before long. By 2020, Prensky predicts people across the globe will be plugged into the “AORTA,” – Always On RealTime Access – a term coined by Mark Anderson, the chief of the Strategic News Service – specializing in technology news. A future in which people are constantly able to access information and news from anywhere on the planet. Shah says that the works of science fiction may offer the most accurate insight into our futuristic society. He said: “The presents that we live in, are the futures that our pasts have imagined.” “Let us hope that the technologies of the future will also be designed to protect that which is sacred, and that which is important in our own understanding of being human.” (CNN)

December 2012

www.thepresidentpost.com

Health

Living a Healthy Life Longer “Being old doesn’t mean being sick”. This thought crossed Bambang Tri Waluyo’s mind when he became fascinated with the lifestyle of Japan’s elderly, who stay healthy, fit, and independent at their old age.

ambang Tri Waluyo, President Director of Fortune Star, said that when he studied in Japan, he discovered that the Japanese lifestyle is a good example for people, especially Indonesians, who wish to remain healthy. The Japanese have a spirit that can be found in all aspects of their life. They appreciate anything, including health. So no wonder the average life expectancy of the Japanese is the highest in the world. One of the regions, namely Okinawa, is considered as the healthiest region in the world because the average age of women reaches 86 years, while men is 78 years. They not only live longer, they are also healthy and happy. Departing from the desire to improve the quality of Indonesians, Bambang Tri Waluyo established Fortune Star in 1996. Initially, Fortune Star is a marketing company that markets health supporting products originating from Japan. Their marketing technique is very unique, which is providing education through seminars. For almost 16 years, Fortune Star has conducted seminars in more than 360 cities across Indonesia. Bambang said, “Our experience of directly jump to society allows us to discover that Indonesians are still poor in

terms of of knowledge and health information. A lot of misunderstandings about health have been around for a long time in our society.” According to him, Indonesians need more knowledge on health governance which may be obtained freely from media or government programs. Bambang revealed some factors that influence a healthy body: • Genetic factors — inherited from parents which cannot be avoided • Lifestyle — can be adjusted and changed. Lifestyle includes diet (eating culture, food quality, etc.), stress management, and motion patterns • Environment — includes water, air, and soil. No one can guarantee these three are in good condition, especially in urban areas. Regarding these three factors, Bambang emphasized on lifestyle factor which he thinks Indonesian are still very underdeveloped compared to the healthy lifestyle of the Japanese. For example, the Japanese have a preference for vegetables or raw food because they think food does not need to go through the long process of cooking so that the damage and free radicals formed from cooking will be very minimal, and the quality of the food is still good. On the other hand,

For motion pattern, if you take the example of Japanese people, their daily exercise of walking is not just in the gym. In Japan, its culture, lifestyle, infrastructure and habitats support the community to walk many miles each day.

Bambang would like to invite Indonesians to actualize the slogan ‘prevention is better than cure’ in everyday life. “Society has the right to actualize their rights to living a healthy life as long as possible.” Indonesians like deep-fried food because it’s tasty yet so harmful to the body. Another example is that while the majority of the Japanese people do not believe in God and call themselves atheists, they live with a sincere soul and as such do not experience much stress.

Statins May Lower Risk of Death from Cancer www.healthhub.org

If you take statins to lower your cholesterol, you may also be lowering your risk of death from cancer, new research suggests. A report published in Thursday’s edition of the New England Journal of Medicine is one of a number of recent papers suggesting that statins not only limit the growth of cancer cells but also make them more vulnerable to certain therapies. “Regular statin use before and after a diagnosis of cancer could theoretically reduce cancer-related mortality,” wrote study leader Sune F. Nielsen, a biochemist at the University of Copenhagen who based his findings on an analysis of more than 5.5 million people in Denmark. Statins are already used by millions of Americans to improve their cardiovascular health by reducing the liver’s production of cholesterol. Though an excessive amount of cholesterol can inhibit blood flow by narrowing or blocking arteries, the waxy substance is actually necessary for good health. Among other functions, cholesterol helps to build and maintain cell membranes, and is essential to their proliferation. Therefore, when cholesterol production is limited, the ability of cancer cells to reproduce uncontrollably is diminished, scientists say. There has also been some experimental evidence that statins may increase the effectiveness of radiation therapy. Nielsen and his colleagues

Regular statin use before and after a diagnosis of cancer could theoretically reduce cancerrelated mortality.” Sune F. Nielsen a Biochemist at the University of Copenhagen based their conclusions on an analysis of government death records and other medical data for the entire population of Denmark between 1995 and 2007. The researchers zeroed in on cancer patients who were 40 or older, on the assumption that younger people were unlikely to take statins. That left a total of 295,925 cancer patients, including 18,721 who used statins. Nielsen and his colleagues

found that patients who took statins were 15% less likely to die during the course of the study — of cancer or any other cause — than those who hadn’t taken the cholesterol-lowering medication. But the researchers didn’t find a clear relationship between the size of the statin dose and the patient’s risk of death, which suggested that “any statin dose will suffice in reducing mortality among patients with cancer.” The authors of the Danish study noted several limitations in their analysis, the most significant being that 97% of the patients were whites of Danish descent. “Our results may not necessarily apply to other ethnic groups,” they wrote. They also said it was possible that statin use was a marker for increased health awareness among patients, which could affect the results. LA Times

This is in contrast to the people of Indonesia, who claim to be religious but in fact are full of hatred, suspicion, anger, and are easily offended. “So I can say that the emotional intelligence of Indonesians is still below that of the Japanese society,” said Bambang.

Under these conditions, Bambang established Preventive & Care (P & C) Healthcare as a place to educate society by conveying the reality so they are more aware of the importance of health. Since its establishment in 2010 P & C Healthcare has put forward the concept of Preventive Health Management, which aims to extend a healthy life as long as possible as well as preventing illness.

The P & C Healthcare offers three types of preventive services: • Primary prevention The service is intended for those who are healthy and really want to stay healthy; those who aware that being sick is so bad, and afraid to get sick. P&C Healthcare will seek the risk factors of diseases so it could be prevented as early as possible. • Secondary prevention The service is intended for those in the recovering process so they will not get sick again. Hospitals only help cure diseases but do not look for the causes, so there is the potential for relapse. P & C Healthcare will look out for

the cause of any illness, so the disease will not get worse. There is also counseling that provides comprehensive and maximum solutions. • Tertiary prevention The service is intended for those who have to do rehabilitation. For example, for stroke patients, the P & C Healthcare provides therapies that will help the healing process faster. Bambang would like to invite Indonesians to actualize the slogan ‘prevention is better than cure’ in everyday life. “Society has the right to actualize their rights to living a healthy life as long as possible,” Bambang concluded.

www.thepresidentpost.com

December 2012

Tourism TOURISM UPDATES Gunung Kidul Promotes, Develops Tourist Spots The Gunung Kidul local government in Yogyakarta is making efforts to promote and develop the district`s tourist spots under the framework of its tourism investment development mission, according to regional development planning board spokesman Syarief Armunanto. “The tourism investment development mission will focus on natural tourism, village tourism, cultural tourism, and special-interest tourism,” he said here on Thursday. “The local government will step up efforts to provide improved infrastructure facilities at tourist attractions in the district.” He noted that Gunung Kidul had many natural tourist attractions, such as the Ngrancah waterfall in Ngleri village, along with the pristine beaches of Gesing, Ngrenehan, Ngobaran, Baron, Krakal, Sunduk, Watu Lawang, Drini, and Sepanjang. “In 2013, we are going to build and renovate various supporting in-

frastructure facilities such as souvenir shops and restaurants,” Syarief said, adding that the district had many interesting tourism villages as well. Some of the popular tourism villages of Gunung Kidul are Putat, Nglanggeran, Bendung, Ngeposari, Beji, Bleberan, Umbulrejo, and Kemadang. “In a bid to develop these tourism villages, officials from the Gunung Kidul Culture and Tourism office will provide English and tourism management training lessons to the villagers,” Syarief explained. The district also has numerous cultural tourism sites in Gunung Gambar and Wonokobaran.

London ‘Black Cabs’ Promote Indonesian Tourism As many as 250 cabs in London, popularly known as `Black Cabs`, are promoting Indonesian tourism by displaying slogans and pictures of `Wonderful Indonesia`. “Promoting tourism by using iconic cabs in London is an attempt to improve the image of Indonesian tourism, particularly in the UK market,” said Director for Indonesia Image of Tourism and Creative Economy Ministry, Esthy Reko Astuty, in an interview with ANTARA News on Friday.

Astuty explained that the Ministry, together with the Indonesian Embassy in London, hoped to attract British tourists in the second largest tourism exhibition in the world, the World Tourism Market (WTM) 2012, held at the Excel London building, November 5 to 8. “We try to promote Indonesian tourism in many ways apart from the exhibition. We also promote `Wonderful Indonesia` by using `Black Cabs`,” she further explained. “Indonesia is targeting 200,000 British tourists. We hope that by promoting Indonesian tourism through the popular cabs in London, the target would be achieved.” Astuty also noted that it is the second time for the Ministry to promote tourism through cabs. “The ministry intends to strengthen Indonesia`s position in the world tourism industry by participating in the World Tourism Market 2012 in London,” she said. According to the Head of Indonesia Imagery Strategy Agency, Agustini Rahayu, the promotion of Indonesian tourism is carried out by displaying pictures of Indonesian tourist spots on the cabs. “Most of the pictures we display on the cabs show tropical tourist spots in Indonesia since the British tend to prefer warmer places for their vacation during the winter break,” Rahayu explained. She also said that the 250 `Black Cabs’ operate more frequently in certain landmarks in London and tourist centres, such as the Oxford Street.

www.therealdita.blogspot.com

Becaks Urged to be Indonesia’s Tourism Icon In the nation’s leading cultural city, Yogyakarta, which has numerous attractions and is the second most visited destination in Indonesia after Bali, the becak is being promoted as a tourism icon.

he traditional vehicles of Indonesia, popularly known as “becaks”, which are basically pedicabs or tricycles, are rarely seen these days in the metropolitan city of Jakarta. Becaks cluttering the main streets of Jakarta were a common sight before 1994. After that, they were banned in the city because of their propensity to cause traffic jams. Consequently, becaks are widely missed by people living in housing complexes situated away from the main roads, because of the lack of public transportation means in the small and narrow streets of the city. But these traditional vehicles are still a favourite in cities and towns across Java island and elsewhere. In the nation’s leading cultural city, Yogyakarta, which has numerous attractions and is the second most visited destination in Indonesia after Bali, the becak is being promoted as a tourism icon. The head of Yogyakarta’s tourism development office, Bambang Suwarmintarta, said the becak would continue to exist as a means of public transport even as Yogyakarta develops as a metropolitan city. “The becak has had a positive impact on the development of Yogyakarta`s public civilization,” he noted.

“The link between becak and the development of public civilization in Yogyakarta can be seen from several dimensions, namely becak as a mode of traditional transportation, becak drivers being responsible citizens of the city, and becak as the mover of economic activity,” Bambang pointed out. “In the city of Yogyakarta, which covers a total area of 30.5 sqkm, becak has become the essential mode of transportation for the city’s people, especially for tourists who are keen to visit the cultural tourism sites,” he said. Yogyakarta’s cultural heritage includes, among other things, magnificent temples, ruins of palaces and monasteries, various traditions, cultural events, traditional folk and performing arts, and architecture. It is important to note that this is all part of the living culture of Yogyakarta that colours the daily activities of local inhabitants. Due to its rich cultural heritage, Yogyakarta has long been known as the cradle of Javanese culture, which continues to attract domestic and foreign tourists every year. Foreign tourists visiting Yogyakarta admit that they love travelling around by becak because it is “fun and exciting”. Besides, the city’s becak driv-

The head of Yogyakarta’s tourism development office, Bambang Suwarmintarta, said the becak would continue to exist as a means of public transport even as Yogyakarta develops as a metropolitan city.

ers are friendly and always ready to take tourists around at reasonable fares. That is why, this traditional mode of transport has for years been a special attraction for foreign tourists. “I like travelling by becak every time I visit Yogyakarta because the drivers are friendly and never ask for unreasonably high fares,” said Marianne Lammers, a tourist from the Netherlands. The Dutch woman from the city of Haarlem said she had visited Indonesia several times and Yogyakarta was her favourite destination. Some tourists even want to buy becaks and take them to their home country as souvenirs. Some Indonesian students who were invited to a barbeque at the house of Andrew Dodd in Melbourne, Australia, were surprised to see a becak parked in his backyard. “Wow! Where and how do you get this Indonesian traditional vehicle here?” asked Bambang Purwanto, one of the students. “I bought it in Yogyakarta when I went there some years ago,” Andrew replied with a chuckle.

Andrew is now a senior lecturer and the Convener of Journalism at Swinburne University of Technology in Melbourne. He has been a journalist for over 25 years and has worked in the broadcast, print and online media. His work often took him to Indonesia, particularly Yogyakarta. Andrew said he bought the becak in Yogyakarta, had it dismantled and packed in a box, and later got it reassembled after arriving at his Northcote home in Melbourne. Meanwhile, Yogyakarta Governor Sri Sultan Hamengku Buwono X said in Yogyakarta on Wednesday that becaks have been part of the district and the city’s economic system “Becak is not the only mode of transportation but it has played a significant role in supporting the local economy,” the governor noted. According to Sri Sultan, this non-motorised mode of transportation has attracted many foreign tourists to Yogyakarta. Sri Sultan said becak drivers in Yogyakarta have “directly or indirectly” acted as tour guides.

Besides, becaks are inextricably linked to craft vendors and tourist spots in the cultural city of Yogyakarta, he added. “Being a becak driver is an honourable job, just like any other profession,” Sri Sultan explained. “During their journey, becak passengers have ample opportunities to enjoy the beauty of Yogyakarta and understand the local wisdom that is captured on the slogans written all over the city’s walls,” he said. Therefore, the governor urged becak drivers to be role models of traffic safety and give the best possible services to their passengers. “By giving the best possible service to their passengers, becak drivers can promote their mode of transportation as a cultural asset and a tourism icon in Yogyakarta,” he added. More interestingly, a big rally of becaks, which was organized by Yogyakarta Regional Traffic Police Directorate, won the Indonesia World Record Museum (MURI) Award on Tuesday. Held at the North Square, the rally was attended by more than 1,000 becaks and becak drivers

from all districts of Yogyakarta. The award was presented by the Indonesia World Record Museum chairman Jaya Suprana. In the beginning, the becak rally was conducted to make a national record but MURI wanted it to become a world record. “I don`t want this rally to become just an Indonesian record; it should be more than that: a world record,” Jaya Suprana said. “The becak represents a philosophy of life. It is not hard to see how hard a becak driver works to eke out a living for his family,” he pointed out. “Besides, the rally demonstrated that Yogyakarta was the only city and province in Indonesia to that upheld the dignity of becak drivers,” Suprana stated. He noted that becaks were used in Paris as a mode of transport for tourists, although in limited numbers. “We can also see becaks in Paris but as many as that in Yogyakarta,” Suprana said, adding that he would soon send a proposal to the UNESCO to list the becak as a world cultural heritage.

The link between becak and the development of public civilization in Yogyakarta can be seen from several dimensions, namely becak as a mode of traditional transportation, becak drivers being responsible citizens of the city, and becak as the mover of economic activity.”

December 2012

www.thepresidentpost.com

Travel

LAND OVER WATERS Text & Photos by Iqbal Alaik

Almost every house here had a motorboat. The motorboat is the main transportation to fish, carry woods, to visit neighbors and even to shepherd flocks…

he motorboat tore apart the surface of a swamp in Danau Panggang subdistrict, Hulu Sungai Utara district, South Kalimantan, as it carried me and my friends who had just arrived from Jakarta. Although the swamp water wasn’t clear, the water splashes and the surface of the swamp could still reflect the blue sky above. The swamp was also decorated with green water hyacinth or water lilies. Throughout our journey to Tampakang village that morning, we were pampered with beautiful scenery. After half an hour, the floating houses of the Tampakang residents started to appear before our eyes. Our boat approached one of the houses that had a floating toilet in front of it. We were greeted by Pak Misro, one of the local residents who allowed us to take a rest at his porch. Most of the houses in this village are floating houses. Well, actually these houses don’t really float because they have wooden pillars that gripped them from the bottom of the swamp. There were also wooden lanes to connect one house to another.

The swamp water is the source of their livelihood. They wash their clothes, clean themselves, answer the call of nature and other activities with the swamp water. Although the water didn’t meet the hygienic standard plus there were also rubbish floating around, the locals’ activities revolved around the water. Although several houses have already used pumped water from wells, swamp water remains the main source of water for them. Almost every house here had a motorboat. The motorboat is the main transportation to fish, carry woods, to visit neighbors and even to shepherd flocks … Shepherding with boats? Yes, aside from being fishermen and weaving mats, the main livelihood of the locals is breeding swamp buffalos. And Pak Misro is one of the locals who breed swamp buffalos. After taking a rest, we boarded a small motorboat to head to the buffalo barn. The boat was so small! It could only carry three people. Pak Misro took us to the middle of the swamp, where he kept the buffalo barn. The boat slowly moved forward and tore apart the water lilies.

Shortly later, buffalo barns started to appear before our eyes. Hmm… they look like stilt houses, supported by wooden logs of 3.5 meters high from the bottom of the swamp. Kalang, that’s how the locals call them. Every kalang could house up to a hundred buffalos. There was also a special barn for female buffalos to give birth. After approaching one of the kalangs, Pak Misro took us to see the buffalos from a close range. Swamp buffalos have blackish brown skin and not dark grey like the land buffalos because they soak in the swamp almost the whole day. Other differences are that the body of swamp buffalos is more stocky compared to regular buffalos and their curvy horns are

longer. And one thing for certain, swamp buffalos are good swimmers. Pak Misro passed through the buffalos to lift the bar at the front door as we tailed him. Once the bar was lifted, the buffalos went out in an orderly manner one by one. Led by the oldest female buffalo, the animals slowly descended the steep wooden floor and fell into the water! Within minutes, all of Pak Misro’s one hundred buffalos were already in the swamp and swimming along the swamp to look for food. The buffalos continue to chew as they swam. An adult buffalo could swim more than one kilometer long and eat about 50 kilograms of grass each day and return to the barn only in the evening.

Throughout the journey, Pak Misro didn’t start the boat’s engine because he didn’t want to disturb the flocks. Instead, he used a long bamboo to push the boat. Wearing a woven hat, Pak Misro stood on his boat and made specific sounds to instruct his buffalos. You could only hear the sounds of water and shepherds and nothing other than that. The situation was calm and I felt like swimming with the buffalos but dropped the idea because the water was murky. Male buffalos are usually consumed for daily needs and major events such as weddings and Idul Adha. One buffalo usually costs fifteen million rupiah. Aside from being the source of living, swamp buffalos are also

the source of entertainment for the Tampakang people. The locals hold a buffalo race every year to celebrate Independence Day where the buffalos and their jockeys must swim to the finish line. Swamp buffalo tourism can be one of the entertainment alternatives that can be enjoyed by local and foreign tourists. But the cleanliness of the water and swamp environment needs to be increased to improve the living standards of the locals and to make tourists feel comfortable. The buffalos’ food, the water lilies and padihiyang or grass that grow in the swamp, should also be conserved so that swamp buffalos can continue their routines to swim and return to their barns.

Aside from being the source of living, swamp buffalos are also the source of entertainment for the Tampakang people. The locals hold a buffalo race every year to celebrate Independence Day where the buffalos and their jockeys must swim to the finish line.

www.thepresidentpost.com

December 2012

Technology 0 0 2 Z F C M D x i m u L c i Panason

a r e m a C m o o Z r e p u S a er-zoom camera p u s a is 0 0 2 Z Lumix DMC-F constant f/2.8 a h it w s The Panasonic n le m o which means -angle 24x zo , e e id g n w a ra g m n ri m 0 tu 0 a fe 25-6 ther re throughout its u rt e p a gardless of whe m u re , im d x a re m tu p a c is t ount of ligh mm. that the same am at 25mm or all the way in at 600 out you are zoomed

www.dpreview.com

he early models in the FZ series (FZ1 - FZ20) had lenses with constant maximum apertures, but that stopped with the FZ30, launched back in 2005. Last year’s DMC-FZ150 had an F2.8 - F5.2 lens, so the lens on the FZ200 is a huge improvement, and the extra brightness should make a real difference at long focal lengths and/ or in poor light, allowing you to shoot at lower, less noisy ISO settings. Successor to the FZ150 model, the bridge-style Panasonic FZ200 compact offers a 3-inch 460K-pixel rotating LCD screen, a 1.31-million-dot electronic viewfinder, 1920x1080 50p Full HD video recording, a 12.1 megapixel high-sensitivity MOS image sensor, and 12fps continuous shooting without autofocus and 5.5fps with autofocus. The LUMIX FZ200’s powerful 24x optical zoom can be increased to 48x equivalent with the Intelligent Zoom function, and takes advantage of Intelligent Resolution technology to maintain picture quality. The camera’s POWER O.I.S. (Optical Image Stabilizer) provides improved correction accuracy to minimize blur, even when zoomed, and Active Mode effectively suppresses handshake vibration in both still picture and video recording. It’s a speedy performer, images are sharp, and videographers will appreciate the excellent 1080p30 video quality and the option to add an external microphone. The relatively fast aperture allows for shallow depth of field at longer focal lengths for stills and video alike. Looking a lot like a scaleddown D-SLR, the FZ200 takes its design cues from other super zoom cameras. It measures 3.4 by 4.9 by 4.3 inches (HWD) and weighs about

1.3 pounds. The front of the FZ200 is very sparse looking, save for a lamp for the AF assist light/self-timer to the left of the lens (when viewed head on). A good-sized hand-grip with tactile, leather-effect detailing houses the battery pack in its base. It’s good to see a chunky lithium-ion rechargeable battery fitted as standard when some bridge models seem to think that four standard-quality AAs will suffice to get you going out of the box. Above the lens is a swift access pop up flash with a dedicated activation switch sitting alongside it, and there’s also a hot shoe for mounting an external flashgun. The Panasonic Lumix DMCFZ200 produced images of very good quality during the review period. Noise is well-controlled until ISO 1600, which exhibits some artifacts, blurring of detail and slight colour desaturation.

The LUMIX FZ200 is able to produce not only stunning photos but also stunning full-HD in 1,920x1080p60 videos in AVCHD Progressive (MPEG-4) and MP4 formats. Video is recorded at up to 1080p60 in AVCHD format. You can also opt for MP4 recording, but that tops out at 1080p30. The quality is excellent, with saturated colors and crisp detail. The powerful 24x optical zoom with 2-step zoom and POWER O.I.S. is available in video recording and highquality Dolby® Digital Stereo Creator offers highly realistic, powerful sound for videos. A mini HDMI port lets you connect the camera to an HDTV, and a proprietary USB port is on board for computer connectivity. Standard SD, SDHC, and SDXC memory cards are supported. You can get Panasonic Lumix DMC-FZ200 with $600. It is rather high but you can get the best-performing superzoom camera so far.

The LUMIX FZ200 is able to produce not only stunning photos but also stunning full-HD in 1,920x1080p60 videos in AVCHD Progressive (MPEG-4) and MP4 formats.

December 2012

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Golf

The Cengkareng Golf Club and Courses PHOTOS: www.golfwonderfulindonesia.com

he Cengkareng Golf Club is a semi-private facility that welcomes visitors alongside a roster of active members. The club has been open since 1999 and established itself as the club of choice for local and expatriate communities in Jakarta. Located adjacent to Jakarta’s International airport SoekarnoHatta, the Cengkareng Golf Club is a “must play” on any visitor’s itinerary. Classic Californian architecture in the best tradition of golf is designed by renowned architects PT Pacific Andhika Internusa (PAI).

After hosting both the 2005 and 2008 Indonesian Opens, which are part of the European PGA tour, the Cengkareng Golf Club has clearly defined itself as a leader in event management. The tournaments were seen by millions of TV viewers across the world.

The club prides itself on its personalized attentive service and offers International standards of hospitality along with a

Rory MciIlroy Won 2012 PGA Tour Player of the Year McIlroy now becomes the youngest golfer who ever won such a prestigious award after Tiger Woods got such award at the age of 21 back in 1998. World number one golfer, Rory McIlroy, won the PGA Tour Player of the Year award. After that, he also received the European Golf Writers Trophy 2012. This year is an amazing year for him as he ended the season with two major titles and won the most money in the Atlantic. Total the world number one has won four PGA titles this year. He explaned that he was inspired by his girlfriend, Caroline Wozniacki. Caroline Wozniacki is a former world number one tennis player. “Seeing how hard she works, how she set the discipline of life, and how high her dedication to the sport, inspired me to be like her. Her spirit and passion affected me,” said the golfer from Northern Ireland. McIlroy now becomes the youngest golfer who ever won such a prestigious award after Tiger Woods got such award at the age

of 21 back in 1998. He also became the third European golfer to have achieved this in the last five years, following in the footsteps of Padraig Harrington in 2008, and Luke Donald last year. “I always win when she’s on my side. I must continue to take her to all my tournament,” McIlroy said after his victory in the Dubai World Tour Championship in Dubai, recently.

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championship golf course, presented in immaculate condition throughout the year. Cengkareng’s swank, open-air colonial-style clubhouse restaurant is one of the nation’s best in terms of food, drink, service and ambience. An expert, all-female caddie corps extends this spirit of service to the golf course itself, which has hosted its share of professional tour events (the 2005 and 2008 Indonesian Opens, both co-sanctioned by the European PGA tour). However, just

6,300 meters from the very back tees, Cengkareng is supremely playable for all levels of player, with fairways shaped to gather tee shots instead of repelling them into the underbrush. The allures of the Cengkareng GC go well beyond its expertly designed and maintained golf course. At Cengkareng, the traveling golfer has the opportunity to hit that first range ball, enjoy a drink in the clubhouse, or head straight to the 1st tee a mere 45

minutes after touching down at nearby Jakarta’s Soekarno-Hatta International Airport. Indonesia’s no-fuss visa on arrival system plays a remarkable role here as well. After hosting both the 2005 and 2008 Indonesian Opens, which are part of the European PGA tour, the Cengkareng Golf Club has clearly defined itself as a leader in event management. The tournaments were seen by millions of TV viewers across the world.

Golf Gadget:

Callaway uPro MX Plus GPS Each year more and more features are packed into devices that are put out to help the golfer move their way around the golf course. Distance measuring devices are truly an invaluable tool that can help speed up play, as well as for players to be more efficient in their club selection and hone their abilities in course management. I have found many devices that can help you for better golf play. The latest offering from Callaway is hoping to enter that list and move towards the top of a market with their newest offering. The Callaway uPro MX Plus GPS is the only golf GPS device with ProMode featuring actual aerial imagery and aerial video flyover in a compact and easy to use device. ProMode provides a realistic view of the course using actual aerial photography with precise yardage to hazards and key points selected using AnyPoin Technology. In this mode you can pan the entire hole with the swipe of a finger and zoom in and out to see more or less detail, allowing you to make better decisions and play with confidence. Featuring next-generation software for ease of use, the upro mx+ also offers a full-col-

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The allures of the Cengkareng GC go well beyond its expertly designed and maintained golf course. At Cengkareng, the traveling golfer has the opportunity to hit that first range ball, enjoy a drink in the clubhouse, or head straight to the 1st tee a mere 45 minutes after touching down at nearby Jakarta’s Soekarno-Hatta International Airport. Indonesia’s no-fuss visa on arrival system plays a remarkable role here as well.

or, multi-gesture touch screen; an omni-directional antenna to help maintain GPS lock even in adverse conditions; and no annual fees or subscriptions. Not only that, there is also a Digital Scorecard which enables golfers to track their scores and basic golf stats on the device, ranging from fairways hit to greens in regulation and putts

during each round, amongst others. It also includes a free, 25,000course database, including course aerial photography, that may be updated for free online by using a simplified download process. The Callaway uPro MX Plus GPS is priced $199. So what do you think?