ENGLISH EDITION
The President Post T H E
S P I R I T
O F
I N D O N E S I A
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.
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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.