The President Post Vol II April 2013

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S P I R I T

O F

I N D O N E S I A

ENERGY

MCC Starts Activities In Indonesia – Page A5

IDR 20,000

April 2013 Vol. 2 No. 4 www.thepresidentpost.com

TRANSPORTATION

CULTURE

Government to Operate 24 New Airports up to 2015

Oirata: A Local Language That Faces Extinction – Page C5

– Page B5 Hillary Clinton

EE Mangindaan

Morotai Widely Open to Investors: Governor The President Post/Rians Rivco

JAKARTA (TPP) – The Indonesian government plans to transform Morotai Island into a special economic zone housing an international harbor and an airport, with the aim of creating a regional transport center. The governor of North Maluku, Thaib Armaiyn, has urged all sectors to support the government’s plan by inviting more investments to Morotai.

M

orotai is located in the Halmahera group of eastern Indonesia's Maluku Islands. Most of the island's interior is rugged and covered in thick jungle. With abundant fishery resources and a well-preserved coral reef ecology, the island is regarded as a good place to develop the logistics and tourism businesses.

Minister of Marine Affairs and Fisheries Syarief Sutardjo has designated Morotai as a model of maritime development that will help to accelerate economic area development bases on marine and fisheries. The Morotai island water is vast, consisting of 160 different fish species of significant economic value that allows

al schools especially in marine, agriculture, and mining. Thaib admitted that they currently have mostly hard labor workers. The government still needs to produce more people with administrative skills to work in companies, he said.

31 business sectors to thrive and produce 148,473.8 tons of fish per year.

The development of Morotai has the full support of the central government and the private sector, one of which is Jababeka, the company that owns and manages Southeast Asia’s largest industrial estate in Cikarang, south of Jakarta. According to the governor, the support from Jababeka provides the initial momentum that saw capital from western Indonesia to enter Morotai.

Thaib said, “Jababeka built cottages and infrastructure facilities so investors from Taiwan were able to survey Morotai.” Indonesia and Taiwan will jointly outline and implement blue-

Jababeka built cottages and infrastructure facilities so investors from Taiwan were able to survey Morotai."

Thaib Armaiyn North Maluku Governor

prints to develop Morotai's forest resources, fish farming and ecotourism.

Meanwhile, Thaib ensures that the local government will support all investors that come

to Morotai. With the support of the central government, they plan to build better roads, electrical facilities, and harbors and also set up logistics services, airports and other means to attract

investors. Also, he added, regulations will be made to make investors convenient to do business there.

“We open wide opportunities for investment, so existing regu-

lations are possible to be revised in line with the latest developments,” he stated.

The local government is also enhancing human resources quality by establishing vocation-

Morotai is also known as being part of world history because it was once the battleground between Japan and the United States and Australia (Allied forces) during World War II. In 19431944, approximately 200,000 allied troops landed on Morotai.

Now, the remains of World War II at Morotai can still be seen; they are located either on land or deeply immersed in the ocean. The number of relics is almost impossible to determine, and the Morotai government intends to revive memories of World War II through historical tourism.

The acceleration of Morotai development coincides with the success of “Sail Morotai 2012”, a maritime event that saw hundreds of yachts from many countries take part.

High Hopes Pinned on New BI Governor Finance Minister Agus Martowardojo has been elected as Bank Indonesia’s (BI) new governor by the House of Representatives (DPR)'s Commission XI for the 2013-2018 period. Agus will replace the present official, Darmin Nasution, whose term ends in late May.

As the former president director of state-owned Bank Mandiri, Agus believes that his background as a banker will be helpful for BI as he can offer an insider’s perspective on how banks and the financial system work, as well as to ensure strong coordination between BI and the monetary authority unit, OJK. National financial market players have high expectations for the leadership of Agus as the new central bank governor, one of which is to keep a stable exchange rate of Rupiah. Pressure on the Rupiah has recently prompted foreign investors to divest their domestic portfolios in stocks and bonds in order to prevent losses.

The three main priorities to be expected from the new central bank governor includes main-

He believes that Indonesia’s economy will face serious challenges in the future. “The country would continue to heavily depend on foreign flows to finance its current account deficit. taining macroeconomic stability by monitoring inflation, giving a boost to economic growth, and keeping the exchange rate.

"Maintaining stability of the exchange rate is 'the homework' for the new central bank governor as the turmoil in the global financial markets is expected to continue," said an economist of PT Bank Mandiri Tbk, Destry Damayanti.

BI is expected to play a great-

er role in terms of maintaining monetary stability and keeping inflation in check so that it remains low. If not controlled properly, those two things will greatly disrupt the nation’s macroeconomy.

Inflation remains the key focus at present though controlling it is not a problem that is solely tasked to the BI But the central bank is expected to be more proactive in overcoming it.

HIGHLIGHTS

On the banking sector, Agus argued that reciprocity was “important” to support the expansion of local banks overseas,

stressing the need for Indonesia to protect its banking industry.

He supported the clause in the Banking Bill, which obliges all foreign banks operating here to become legal entities (PT), but rejected lawmakers’ suggestions to limit the foreign ownership of banks to a maximum 40 percent, from the current 99 percent.

All related parties have the same expectation for Agus as the new central bank governor, which is to strengthen Indonesi a's economy for the future.

Agus Martowardojo

Astronacci Monthly Outlook

Government Considers Revising Price of Subsidized Fuel

RI to Avoid Overhaul of Millennium Goals

ending poverty should be maintained as priority in the post-2015 MDGs.

The government is considering revising the price of subsidized fuel due to its disparity with the price based on economic calculation. The current price is Rp 4,500 per liter (approximately $0.46) and is less than half of the prices of nonsubsidized one. The initial budget for subsidized energy is Rp 274.7 trillion ($ 28.2 billion) and includes 46 million kiloliter of subsidized fuel. Yet, subsidized fuel is predicted to reach 51 million kiloliter of consumption this year and would cause a sharp increase of Rp 25.3 trillion ($ 2.6 billion) in the budget.

Speaking in an event one day after the fourth High Level Panel on the Millenium Development Goals (MDGs), President Susilo Bambang Yudhoyono stated that Indonesia would avoid a total change of an existing MDGs framework in designing a post-2015 development agenda. He cited the three proposals he raised during earlier meetings of the panel: (1) Maintaining the existing MDGs framework that comprises eight targets and provide further details to each target, (2) Expanding the targets into nine or ten targets, or (3) Designing entirely new targets. He argued that it is better to opt for the first or second choice, as opposed to the third, as he believes that

30 Cities Participated on Earth Hour 2013

The decision will be announced his month, said a presidential staff for poverty reduction HS Dillon.

Agus has said that his monetary position as BI’s governor would include a monetary policy mix that combine interest ratesrelated policies and macro-prudential measures, all of which would be applied to manage inflation and stabilize the currency.

He believes that Indonesia’s economy will face serious challenges in the future. “The country would continue to heavily depend on foreign flows to finance its current account deficit, with BI tasked to maintain a stable economic and financial environment to avoid any unexpected capital reversals,” he said.

Over 30 cities in Indonesia, a vast archipelago country, joined in Earth Hour 2013 on Saturday (March 23) at 8:30 pm, as the world's largest environmental movement to help save the planet.

WWF has been campaigning Earth Hour in Jakarta since 2009. In 2012, Earth Hour was considered the world's largest environmental campaign which was participated in by two billion people in 7,001 cities in 152 countries.

This year, 14 mayors and district heads as well as 5 governors across Indonesia have been committed to joining Earth Hour.

The JCI is currently moving within the last impulsive 5th wave, where the price tends to rise up, breaching the next potential psychological level which dwells on the level of 5,000. This should be the last significant upward movement before the JCI enters its bigger scale of correction. We expect that the JCI will form its peak around the level of 5,017-5,044.

Fortunately, we can see that the effect of the companies' quarterly report release has become the major impact of this month's euphoric action within the traders. Nevertheless, we

foresee this uprising momentum with the next cyclical phase of price actions. The Pluto Retrograde phase on 13 April 2013 will yield great impact by pushing the market thoroughly further. We shall see many of our stock picks reach their pre-determined target price, and therefore, the profits within our portfolio will be ripe enough to be harvested.

Price Analysis. The JCI will form its peak around the level of 5,017-5,044.

Pattern Formation. We are now witnessing the completion of the 5th wave formation within the JCI's price actions.

Momentum Signal. Although there is still no sign of bearish divergence within the momentum indicators, we estimate that the next peak formation on our predetermined time resistance will be accompanied by a potential divergence between the peak of the JCI and the momentum.

Time Forecast. The Pluto Retrograde phase on 13 April 2013 should be a time resistance for our JCI.

April 2013 Vol.2 No. 4

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Opinion

Warning Signals in the Air, Mounting Pressures Ahead Although Indonesia may face mounting political pressures to restrict the inflow of foreign investment, it is urgent that the country retain its right strategy to promote and facilitate the increased inflow of FDI.

Chart 1. Sectoral GDP Share in Indonesia, 1971-2010 (%)

By Atmono Suryo

Chart 2. Inbound FDI as share of GDP (%)

60

A

A PERIOD OF “GOOD SAILINGS”

fter its economic downfall on account of the Asian financial crisis of 1997/98 it is right to say that since then Indonesia has gone through a period of “good sailings”. Indonesia has been rated as one of the Top Ten Emerging Countries, elected as a member of the G20 and considered to be on par with the BRIC (Brazil, Russia, India and China) countries.

The following data gives us a broad overview of Indonesia’s current situation:

Percent

GDP growth 6.2%

Unemployment 6.56%

Total GDP $945 billion

GDP by sector Agriculture 15.3%

GDP Per Capita $4,943

Industry 47%

Inflation 4.61%

Services 37.6%

Exports $208 billion

External debt $223 billion

Imports $127.4 billion

Foreign reserves $110.30 billion

Main trading partners: Japan, China, USA, Singapore, India, South Korea, Thailand, Malaysia

8 2002-2004

40 30 20

2005-2008

2010-2011

6

6

4

4

2

2

10 0 Agriculture

Industry

1971

1980

1990

2000

Services

0

2010

Source: BPS

Brazil

China

India

0

Indonesia Malaysia Mexico Thailand Vietnam

Source: CEIC, World Bank

Ease of doing Business Rank 129th Sumber: Wikipedia

Ekonomy of Indonesia

Percent

8

50

It should be added that the country has developed a very large Middle Class. Estimated to be around 50-100 million, they are armed with better education and increasing purchasing power. However, in the areas of doing business, productivity and competitive strength, Indonesia’s position is still considered to be at a very low level.

During the period of good performance, not enough firm actions have been taken to resolve the long-pending issues and to

noisy demonstration are coming out in greater force. On this score, the World Bank rightly issued some early warning signals in its Quarterly Report of March 2013, stating that Indonesia’s economic growth has remained steady but pressures are mounting. Such warnings should be seen as a real push for the country to give its fullest attention to some unresolved policy issues.

Mounting pressures will occur in the current account area, which already shows a widening deficit of some $24.2 billion for 2012, compared to a surplus in 2011. This deficit is caused by the widening oil deficit which

improve the weaknesses of the economy. As a result thereof the country is presently caught in an unpleasant social situation.

For example, the agriculture sector has been left in a state of neglect, causing shortages in the area of food supply for such items as rice, onions, soybeans, sugar, salts, fruits, and meat. At the same time mounting corruption remains to be in full swing among some political elites!

EARLY WARNING BELLS ARE RINGING

It is no surprise that an increasing number of early warnings, emergency signals and

reached the sizable sum of $23 billion in 2012. The non-oil sector, with its weakening commodity sector as its main pillar of strength, has not been able to compensate (even in a small way) the very large oil deficit.

Another critical area would be Indonesia’s budget which will most likely continue to suffer mounting pressures on account of the huge energy subsidy which has its very sensitive social implications. Apparently the government is presently still in a difficult position to come up with the right solution.

With tight financial situa-

tion, the weakening exports sector and the widening current account deficits, there is the need for a greater inflow of capital: FDI (foreign direct investment), Portfolio, IDA (international development assistance), others.

Developing countries are keen to attract foreign investments.

Indonesia’s investment outlook, however, may not be as bright as expected. As the World Bank observes, there is the risk of regulatory uncertainties and the increase of political noises, in particular as the 2014 elections is getting closer. These noises are scaring investors away as they often say, “Nothing is certain in this country”.

Indonesia should be aware that it is facing stiff regional competition. As a result, FDI inflows into Indonesia remain modest compared to its peers such as China, Malaysia, Thailand and even Vietnam, as shown in Chart 2.

Although Indonesia may face mounting political pressures to restrict the inflow of foreign investment, it is urgent that the country retain its right strategy to promote and facilitate the increased inflow of FDI. The writer is former ambassador to the EU.

Reconciling the Interests of Labor and Corporations The workers’ welfare has to be improved simultaneously with efforts to improve the business climate and by immediately eliminating high cost economy.

Entrepreneurs should be able to improve the workers’ welfare without reducing the competitiveness of the products or services they offer.

By Hendra Manurung*

L

abor protests against low wages and the outsourcing system occurred in almost every city in the country. The workers also took to the streets to reject the Social Security Organizing Body (BPJS) and the National Social Security System Law (UU SJSN). The workers had threatened to stage demonstrations until President Susilo Bambang Yudhoyono issue a government decree in lieu of the UU SJSN. The workers’ welfare has to be improved simultaneously with efforts to improve the business climate and by immediately eliminating high cost economy.

Entrepreneurs should be able to improve the workers’ welfare without reducing the competitiveness of the products or services they offer, especially ahead

of the ASEAN Blue Print 2012: ASEAN Single Market. The government is responsible for finding or offering the best solution to overcome the so many problems and to anticipate any potential that may disrupt the stability of the national investment climate, especially those related to manpower.

tensive manufacturing sector.

Entrepreneurs who could survive the condition might have to cut production cost by for instance cutting jobs or increase the prices of products or services. At the end of the day, inflation and industries will not be able to compete both in the country and international market scene.

er stated that: “In a case where a company is declared bankrupt or liquidated according to the existing law, the workers’ wage and other rights become debt and that it must be paid first”. Based on that, the company or employer and the government (state) have the responsibility to pay the workers’ rights.

Regional governments have taken a short cut with a popular policy that favored the workers without calculating how drastic the wage increase is. This could pose a problem for the national industrial sector and job opportunities if it’s conducted without differentiating the business scale, type of business and the company’s performance. The increase in the provincial minimum wage (UMP) by almost 50% will serve as a big blow for the micro, small, medium enterprises (MSME) and the labor-in-

It’s in the government’s interest to end exploitation on labors as long as it’s still in line with the legal corridor and as long as it doesn’t hurt the national interest, including the long term economic plans. Let’s prevent 75% of around 110 million workers both in the formal and non formal sector from losing their jobs and incomes.

The formula which fully sided with meeting the workers’ welfare lies in Article 95, Clause 4 of the Labor Law. Article 95 (4) of Law No. 13/2003 on manpow-

The situation becomes dilemmatic when the rights which are guaranteed by both international and national human rights regulations clashed with another law on bankruptcy and guaranteed goods. The regulation which prioritizes paying tax debts (or those related to the state money) and payment to individual creditors didn’t emerge just like that.

The regulation already existed before this republic was born and it was regulated under the civil code and commonly used on credit guarantees both locally

and internationally.

Aside from that, if the regulations about the credit guarantee system, which covers creditors, is ignored just like that, it will shake up other systems such as the banking credit system, in which the disruption in the banking credit system will eventually hurt the investment climate.

Problems related to the improvement of the workers’ welfare become worse with the court’s inconsistency in issuing rulings which names workers as the credits. In one ruling the workers are said to be special creditors who should be paid first. On another ruling, workers are said to be preference creditors, not special creditors. The inconsistency will certainly create uncertainties on whether the workers’ rights can be fulfilled as mandated under UDHR, ICESCR, 1945 Constitution, and hu-

man rights law.

With regards to the implementation of the SJSN program, a more focused formula and mechanism is needed, one that doesn’t burden low-income people without eliminating the state’s obligation to provide the national guarantee. So, it’s clear that entrepreneurs would not be reluctant to pay the minimum wage of Rp2.2 million per month if it’s followed by improvement on skills, productivity and quality of the workers’ work ethics.

Keeping the interest of both workers and entrepreneurs balanced is a must to create harmony, conducive industrial relations and sustainable business to provide job opportunities. *Hendra Manurung is a staff/lecturer of international relations at the International President University, Kota Jababeka, Cikarang Bekasi

ENGLISH EDITION

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April 2013 Vol.2 No. 4

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KBRI Updates www.kemlu.go.id

Indonesia Received Award at the 47th Ministerial Conference on Education in Hanoi The Indonesian delegation consisted of the staff of the Ministry of Education and Culture and the SEAMEO Center and the Indonesian Embassy in Hanoi

H

anoi hosted the 47th Ministerial Conference on Education in Southeast Asia with the main subject of accelerated education for all, "Lifelong Learning: Vision and Policy" and the steps in building an ASEAN learning society in 2015 on 19–21March, 2013.

Lifelong learning has focused on comprehensive learning, including formal education, nonformal and informal, within and outside the school by means of the media, libraries, distance education and online education, information technology and communications and other qualified and supporting facilities.

A total of 200 delegates from 18 countries were present at the conference, including President Truong Tan Sang, Deputy Prime Minister Nguyen Thien Nhan, President of SEAMEO Pehin Abu Bakar, Minister of Education and Training of Vietnam Pham Luan Hu, and a number of ministers/ministers of education of 11 members of

SEAMEO, including Timor Leste, 8 SEAMEO Associate Member Countries, 3 affiliate members of SEAMEO (International Council for Open and Distance Education (ICDE), Tsukuba University, and the British Council)), 20 SEAMEO Regional Centers and development partners, and representatives from UNESCO, UNICEF, ADB. The Indonesian delegation consisted of the staff of the Ministry of Education and Culture and the SEAMEO Center and the Indonesian Embassy in Hanoi headed by Vice Minister of Education and Culture Professor. Dr. Musliar Kasim.

At the conference, awards

were presented to the outstanding staff from each SEAMEO Center. Within the cooperation framework of SEAMEO, Malaysia, Indonesia and Thailand gave awards to one of the staff at Bina Nusantara University in Jakarta, Ms. Laily Alfa Citra.

A number of activities were carried out in the conference, such as the signing of the SEAMEO Center on Lifelong Learning (CELL SEAMEO) doxument, the launch of SEAME College, and the confirmation of Great Britain as an Associate member of SEAMEO Member Countries.

KBRI Bogota: Ambassador Mulyani Visits Rosario University Ambassador of the Republic of Indonesia to Colombia Trie Edi Mulyani, accompanied by her staff on Economic Affairs, delivered an academic presentation to 25 students of Diploma Program: “Asia and Transpacific Relation” sponsored by the University for the PROEXPORT (13/03).

Pro Export is a government institution responsible for the

promotion of foreign trade, investment and tourism. The participants are senior and junior analysts of PROEXPORT from Bogota, Medellin, Cartagena and Pereira. The presentation was opened by Doctora Doris Ramirez Leyton, the Diploma Program Coordinator of the University of Rosario.

The main points of the presen-

tation and discussion, among others, are the status of bilateral relation between Indonesia and Colombia, the Indonesian economic growth performance, Indonesia’s potentials in terms of trade, investment and tourism, the Master Plan of Development Acceleration’s projects, the development of trade between Indonesia and Colombia, success

stories from several businessman who are doing business with their partners in Indonesia as well as the facilitation services provided by the Embassy of the Republic of Indonesia in the fields of trade contacts in order to bolster the economic relation between the two countries.

Embassy in Bangkok Holds “West Java Nite” In order to promote tourism in West Java in Bangkok, Thailand, the Indonesian Embassy in cooperation with the Department of Tourism and Culture, West Java Province, and Garuda Indonesia held West Java Nite at the InterContinental Hotel Bangkok, on March 22, 2013.

The event was attended by Indonesian Ambassador to Thailand Lutrfi Rauf, Nunung Sobari, Head of West Java provincial government tourism department, I Wayan Subagia, General Manager of Garuda Indonesia Bangkok, more than 100 tour operators in Thailand, and the local media. This promotional activity is intended to attract more travelers to visit Indonesia, especially West Java.

In his opening remarks, Ambassador Lutfi Rauf said Indonesia and Thailand have signed a

In his opening remarks, Ambassador Lutfi Rauf said Indonesia and Thailand have signed a Memorandum of Understanding (MOU) on cooperation in the field of tourism in 2003. Since then, various forms of cooperation have been implemented.

Memorandum of Understanding (MOU) on cooperation in the field of tourism in 2003. Since then, various forms of co-operation have been implemented. Specifically to attract the Thai market to West Java, the historical aspect has been highlighted by the fact that King Chulalongkorn made three Royal Visits to Java in 1870, 1898 and 1901.

Some places in West Java visited by King Chulalongkorn included Bogor, Cianjur, Cipanas, Garut, Bandung and Sukabumi. According to records, one of the king of Thailand’s favorite places was the Bogor Botanical Gardens, which is said to have inspired the development of a similar park in Thailand.

West Java has a lot more to offer, from natural beauty, cultural attractions and food to fashion and shopping.

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April 2013 Vol.2 No. 4

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Law & Regulation

Development and Availability of Land Both the government and the private sector need to find an alternative solution to carry out the development without necessarily having to procure the land. This can be done by offering the land owners to cooperate and to take part so that the development project can run.

A

project that was proposed by the developer or the government.

The benefits from this cooperation scheme are as follow:

B

• No land clearance is needed

Since no land clearance is needed, the potential for a social conflict to break out can be avoided.

C

By Paulus Khierawan

L

and has always been an interesting topic of discussion due to its limited supply in light of the public’s growing demand. Indonesia’s current population is estimated at 245 million and the figure is expected to continue to grow in the coming years. The Indonesian population is projected to reach 286 million by 2025, 319 million by 2035, and 353 million by 2045. We can imagine how difficult it would be to get a piece of land by that time.

Land problems not only give the people a headache but also the government because Law No.2/2012 on land procurement for development of public facilities requires the government to make land available. Article 5 of the land procurement law stated that: “The party who had the (land) right must let go of their land during a land procurement intended for the public’s interest after receiving compensation or based on a court’s decision which has a legal standing”.

Article 10 of the land procurement law defines the public’s interest as: • National defense and security • Public roads, toll roads, tunnels, railway tracks, train sta-

•

• • •

• • • • • • • • • • • •

tions, and train operation facilities Reservoirs, dams, irrigations, drinking water pipelines, drainage and sanitation, and development of other irrigation facilities Ports, airports and bus terminals Oil, gas and geothermal infrastructure Generators, transmissions, electrical substations, networks, and electricity distributions Telecommunication and state’s informatics networks Final dump sites State/regional-run hospitals Public safety facilities State/regional-run public cemeteries Social, public facilities and open green space for the public Wildlife sanctuary and cultural heritage sites Government/regional offices Rebuilding of slum areas and/ or land consolidation, and rent houses for low-income people State/regional run education facilities State/regional-run sports facilities; and Public markets and public parking spaces.

The law must be able to keep the problems related to land procurement from emerging again because the law had already

• Land owners can still own their land and they can even enjoy the bonus value from their land

B C

A

A

B

A B C

C

outlined what the public’s interests are. But in reality, we still see clashes with local residents which hamper some of the government’s public interest projects.

Many of these social problems stem from price disagreement in which the government offered prices below the public’s expectation. Eventually, many of these problems ended in violence between the government and residents. It’s not easy to buy land that had been inhabited by the people for decades.

One such example is the clash with land owners in Lemah Ireng village, Bawen subdistrict, Semarang, on the Semarang–Solo toll road project. The government valued the land for only Rp 63.000 per meter while local residents said the price of land in the area ranged between Rp250,000- Rp400,000 per square meter.

A-B-C-X

The land procurement problem is also experienced by developers. Unlike the government which has the special authority to hold land procurement, the private sector has to reach agreements/contracts in procuring land. In this case, the land owners and developers have an equal bargaining position, which is different than the unbalanced bargaining position between the government and land owners. As a result, developers could not start the development project if the land owners refuse to sell their land to the developers.

Land procurement concept is not only prone to social conflicts, it also requires huge funding, especially if the land that were to be purchased were located in the heart of the city such as on Jakarta’s Thamrin or Sudirman streets as the price could reach as high as Rp40 million-Rp50 million per square meter. The

developer needs to provide an extraordinarily huge amount of capital to build these areas.

Therefore both the government and the private sector need to find an alternative solution to carry out the development without necessarily having to procure the land. This can be done by offering the land owners to cooperate and to take part so that the development project can run. One example is a developer who wanted to build a superblock which required a big plot of land must first build a public facility in the form of road, open green area, and others to obtain the government’s permit. Rather than procuring land, the developer could invite the land owners to join the project.

The illustration above shows that land owners A, B, and C joining the regional development

The land still belong to the land owners and there is no transfer of ownership. The development of the new and grand superblock may even bolster the price of land by several folds and the land owners didn’t even have to spend a dime. They could still live there or partially rent it and enjoy some profits.

• The developer can gain some benefits from the new floors

The new floors that were made became the developer’s right as the result of the investment it made. These floors could be rented and become a source of income for the investor.

Aside from those positive points, there are also several challenges in adopting this concept, which include: • The cooperation concept which involves many parties becomes a breakthrough in land procurement but the concept has to be really clear and fair. This concept is something new in Indonesia that it needs to be well socialized.

• The time needed to finalize it is relatively longer because the number of parties that were invited to cooperate is quite

large plus an extra time is also needed to socialize the proposed project.

This concept is worth trying given the high probability that prices of land would continue to rise in the future. The law on land procurement had actually included this concept in which article 36 stated that: Compensation could be given in the form of: • money; • another land; • resettlement; • share ownership; or • another form agreed by both parties.

Compensation in the form of share ownership is as follow: “capital placement in the development of the public interest activity and/or management based on agreements by both parties” Under this scheme, the government has actually allowed land owners to cooperate in its proposed project. But what mostly happened all along is that the land procurement only offered cash as the compensation. The government only wanted a quick and easy solution. After the purchasing process, the government didn’t have any other obligations to the land owners.

This is different compared to the land procurement concept which offered share ownership/cooperation: the government would still be linked to the land owners. It’s true that matters would be more complex and that it requires extra attention, but this way is safer because the chance of a social conflict to break out is almost zero due to the land owners’ participation in the project.

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April 2013 Vol.2 No. 4

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Energy

MCC Starts Activities In Indonesia After three years of meticulous preparation, primarily solving the complicated legal and regulatory differences between the US and Indonesia, the Millenium Challenge Corporation (MCC) is ready to begin to execute the $600 million MCC Compact Agreement between the two countries signed in November 2011.

www.voa.gov

By RESPECTS

B

eside raising high hopes for having a meaningful impact on Indonesia’s development objectives, the MCC Indonesia Account (MCA) management faces big challenges in implementing projects on the ground.

Lukita Tuwo, the Vice-Chairman of the National Development Planning Board (BAPPENAS), in his speech to over a hundred invitees at the US Ambassador’s Residence, on March 27, 2013, celebrating the coming Entry into Force (EIF) of the Compact Agreement, said that Indonesia was considered qualified to get the MCC fund for development back in 2009, but much effort was needed to get this qualification translated into real programs that fit Indonesia’s specific development needs which could be met with MCC funds. Lukita was also speaking as Chair of the eight-member Majelis Wali Amanah (MWA), a governing body for the MCA program implementation.

Lukita found that this program is unique in the sense that it is not an ordinary bi-lateral ‘grant’ from a rich to a poorer country. The fund involved in the Compact agreement is managed entirely by a special entity, the MCA Indonesia, under Indonesian leadership, and is to be spent on projects prioritized by the Indonesian people.

The MWA membership comprises four government nominees and three members representing the Private Sector, NGOs

Hillary Clinton and Academics. Lukita said that there were many legal and regulatory differences between the US and Indonesia that need to be ‘matched’ to make the program viable. Both sides, he said, had to go the extra mile to get the agreement finally ready for signing on November 19, 2011 by Indonesian Minister of Finance Agus Martowardoyo and the US Secretary of State, Hillary Clinton in Bali.

Hillary Clinton, in her remarks made after the signing ceremony, which was also attended by MCC Chief Executive Officer Daniel Yohanes, said that this Compact is so far the largest ever developed to reduce pover-

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ty and promote economic growth hand-in-hand with the Indonesian government and people. It was designed to meet Indonesia’s priorities, and it reflects the shared values between the two nations.

US Ambassador Scott Marcels, who hosted the gathering, welcomed the implementation of the MCC program as one of the components of the Comprehensive Cooperation between Indonesia and the USA, agreed by both governments when President Obama visited Indonesia 2 years ago.

The $600 million account will be spent over exactly 5 years from the date of the EIF, on April

1st, 2013. J Saputro, MCA Chief Executive Officer, said that he and his management team will have to face big challenges to get the projects implemented not only according to the approved conditions, but also to the tight time schedule within the 5 years allowed time frame in which the Compact will operate.

Around 60% of the total funds will be spent on various projects under the heading of ‘Green Prosperity’, and the remaining 40% will be spent to improve the nutritional conditions in Indonesia’s rural areas, and to help the country improve clean governance practices. The Compact initially focuses on Jambi and

Hillary Clinton, in her remarks made after the signing ceremony, which was also attended by MCC Chief Executive Officer Daniel Yohanes, said that this Compact is so far the largest ever developed to reduce poverty and promote economic growth hand-in-hand with the Indonesian government and people. It was designed to meet Indonesia’s priorities, and it reflects the shared values between the two nations.

West Sulawesi provinces, but will be extended to other provinces later during the 5 years term of the program.

Saputro said that under the Green Prosperity Programs, projects will be directed toward helping Indonesia to achieve the objectives of renewable energy development. This will include setting up a financing scheme to help finance renewable and other green projects in the selected areas. The Indonesian government has set an official target of

17% of the national energy mix to be provided by renewable energy sources by 2020, but currently less than 5% are actually in the mix, as Indonesia is compelled to use more coal to generate electricity to reduce the use of oil, of which the country has become a net importer over the last five years. The government and PLN plans to catch up with the renewable energy use for electricity by speeding up the use of the geothermal developments which the country has in abundance. The MCA program does not include geothermal but focuses more on biomass, small hydro and solar system development for rural areas.

Meanwhile, the MCC Indonesia Country Director, Troy Wray was pleased that his office has helped facilitate the complex process of developing the compact over the last two years. He will continue to devote his time and efforts to ensure that the program’s implementation phase will run smoothly. The MCC Indonesia Office is the liaison between MCA Indonesia and MCC based in Washington DC, USA. Under the Green Prosperity program, there will be a relatively small but important project called ‘Green Knowledge’, the primary objectives of which are to help the country enhance green awareness among the people, conduct capacity building to manage its green energy resources more effectively, and to develop a comprehensive database of the country’s renewable energy potentials.

RESPECTS will follow the development of this program in its future editions.

April 2013 Vol.2 No. 4

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www.thepresidentpost.com

International

RI, Liberia Boost Cooperation in Trade and Investment www.kemlu.go.id

In the areas of trade and investment, the steps will include an increase of promotion in trade and investment, as well as an increase of interaction between government officials and entrepreneurs of both countries.

I

ndonesia and Liberia are committed to cooperate on trade, investment and technical cooperation, as stated by Minister of Foreign Affairs Marty M. Natalegawa and his Liberian counterpart, Augustine K. Ngafuan at the first RI-Liberia Joint Commission meeting in Gedung Pancasila, Ministry of Foreign Affairs.

Both ministers agreed to sustain and strengthen bilateral relations between the two countries following the momentum from Indonesian President’s state visit to Monrovia Liberia last February.

“The meeting between both ministers at this time is to discuss and agree on the potential cooperation between the two countries,” said Minister Marty.

During the meeting, both parties has agreed on aspects related to the effort of exploring and increasing potential cooperation in a range of areas.

In the areas of trade and investment, the steps will include an increase of promotion in trade and investment, as well as an increase of interaction between government officials and entrepreneurs of both countries.

In the technical cooperation, both countries will focus on ca-

Minister of Foreign Affairs Marty M. Natalegawa (right) and his Liberian counterpart, Augustine K. Ngafuan at the first RI-Liberia Joint Commission meeting in Gedung Pancasila, Ministry of Foreign Affairs. pacity building activities, and sharing of experiences and best practices in the industrial sector.

The sectors involved will include furniture manufacture, textile and garment, food and palm oil processing; agriculture (mainly an increase of rice production); fishery (fish farming/ aquaculture in particular), management of marine resources and fishbased food processing; and education, especially through degree and non-degree scholarships.

Meanwhile, the areas of pol-

itics and defense will establish cooperation in education and training of diplomats, police force, National Defense Institute and peace keeping.

Two Memorandum of Understandings for Trade and Industry have also been carefully examined during this Joint Commission Meeting, and will be signed by related ministers from both countries during an upcoming bilateral meeting between the Indonesian and Liberian Presidents.

The 4th Pasar Malam Indonesia in Netherlands Pasar Malam Indonesia 2013 in Netherlands was held for the fourth times since 2010. This year it was held at Malieved, Den Haag, the Netherlands on 20-24 March 2013.

Frans Timmermans, Minister for Foreign Affairs of the Kingdom of the Netherlands, and Retno L.P. Marsudi, Ambassador of the Republic of Indonesia to the Netherlands, officially opened the Pasar Malam Indonesia (PMI) 2013.

Ambassador Marsudi in her opening remarks said that Minister Timmermans’ visit to Indonesia a month ago is a reflection of “new face” relations between Indonesia and the Netherlands.

The Ambassador also stated that Minister Timmermans’ attendance of the PMI 2013 reflects a new spirit of relations between both countries.

The Ambassador stated further that the PMI is a reflection of strong historical ties between the two countries, as mentioned

The PMI is also a media to promote “the New Indonesia” in regard to new developments in all aspects, including trade, tourism and investment (TTI).

by Minister Timmermans during his visit to Indonesia on February 2013 “Indonesia and the Netherlands share the same DNA”. The PMI is also a media to promote “the New Indonesia” in regard to new developments in all aspects, including trade, tourism and investment (TTI).

Minister Timmermans stated that there is great future for cooperation between Indonesia

and the Netherlands. Indonesia can become the gateway for the Netherlands to Asia, and on the other hand, the Netherlands can become gateway for Indonesia to Europe.

On the occasion, Deputy Minister of Trade Bayu Khrisnamurti and the Indonesian Ambassador launched an online directory of Indonesian Restaurants in the Netherlands during the Grand Opening of Indonesian Night Market 2013 in Malieveld, Den Haag (20/03).

The Netherlands holds the largest number of restaurants/ stores/stands serving Indonesian food, while the Indonesian Embassy lists around 1600 places.

The launch of this directory is an effort to sustain and increase the popularity of Indonesian food in the Netherlands.

The popularity of Indonesian food will evidently affect Indonesian export to the Netherlands.

See also Tourism www.pasarmalam.indonesia.nl

Frans Timmermans, Minister for Foreign Affairs of the Kingdom of the Netherlands, and Retno L.P. Marsudi, Ambassador of the Republic of Indonesia to the Netherlands, officially opened the Pasar Malam Indonesia (PMI) 2013.

Both delegates also exchanged views and observations on various regional and international issues such as the Indonesia and Africa relations, Uni Africa, ASEAN, ECOWAS, Indonesia’s leadership in APEC, and Indonesia’s role in advancing democracy in the region through the formation

of Bali Democracy Forum.

Bilateral relations between RILiberia have been established since 1955, marked by the presence of Liberian delegate in the Asian-African Conference in Bandung and continued with the establishment of diplomatic relations in 1965.

Indonesia, Japan Concern on the Future of WTO Minister of Tourism and Creative Economy Dr. Mari Elka Pangestu visited Tokyo, Japan, on 29th March 2013 and met with Senior ViceMinister for Foreign Affairs of Japan Shunichi Suzuki and Parliamentary Vice Minister of Economy, Trade, and Industry of Japan Masaaki Taira.

The ministers discussed bilateral developments and reflected on the positive growth in bilateral trade, investment and tourism flows, as well as cooperation in the creative industries.

They agreed on the importance of the role of trade in growth, development and job creation. They discussed the future of the multilateral trading system of the World Trade Organization (WTO), whose term of office of its DG would expire on 31 August 2013.

Minister Pangestu, Vice Minister Suzuki, and Vice Minister Taira concurred on the importance of continuing to strengthen rules based on the framework of the WTO and making progress on multilateral negotiations. Both agreed of the need for stronger political will to guide Geneva negotiators to ensure deliverables at the 9th WTO Ministerial Conference in Bali this December, especially on trade facilitation, in order to generate momentum and to move on to completing the Doha Development Agenda after the Bali meeting.

They also recognized that different approaches in trade such as through bilateral and regional agreements as well as a multilateral agreement, such as the one on services currently being discussed, can be viewed as positive progress. That is,

Mari Elka Pangestu they need to be managed so that they remain consistent and complementary to the multilateral trading system.

Minister Mari also met Yasuo Fukuda, former Japanese Prime Minister who is also President of the Japan-Indonesia Association to exchange views and receive input regarding her candidacy as Director General of the WTO. Minister Mari also discussed with Chairman of Keidanren Hiromasa Yonekura, as well as some think thank organizations about the importance of the commitment to a global rulesbased trading system, which is the ultimate goal of the WTO. In this regard, Minister Pangestu highlighted the relevance of WTO in the international trade and the importance to safeguard and monitor global rules.

The simplicity of a single framework for global trade, standards and rules is key to ensuring all countries, developed, and developing countries, including small countries and all companies, including SMEs, can participate in global trade. It will also be important for the efficient functioning of the global value chain.

Minister Pangestu is one among four ministers who are candidates for the DG of the WTO. Other than the four ministers, there are five other candidates who are in the race. If elected as the new Director General, Dr. Pangestu would be the first woman to hold the position since the creation of the WTO.

www.thepresidentpost.com

April 2013 Vol.2 No. 4

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Education

Looking at the Prospects of IT in Indonesia The rapid development and adoption of Information Technology (IT) in Indonesia cannot be separated from the contributions of IT geniuses and college graduates armed with IT know-how.

According to some sources, IT is one of the 10 highestpaying jobs in the world, especially in the United States, although the term "information system" is more common than IT itself.

www.simonstapleton.com

graduates armed with IT knowhow. According to some sources, IT is one of the 10 highest-paying jobs in the world, especially in the United States, although the term "information system" is more common than IT itself.

Unfortunately, the fulfillment of the increasing demands towards IT personnel in Indonesia’s key sectors is still far from adequate, both in quantity and quality. It is said that there about 25 thousand IT students from not less than 200 Higher Educations (HEs) in Indonesia graduate every year. The number is still far behind from the 500 thousand demands towards IT personnel by domestic companies every year. In view of the enormous demand for IT personnel in Indonesia, studying in the field is indeed a clever strategy.

By Jhanghiz Syahrivar

T

echnology has advanced so rapidly over the last two decades, especially in Indonesia. The rapid advancement in technology is also accompanied by an increasingly heated competition among national and multinational companies operating in the country. With a population of around 250 million people, Indonesia is a huge and appealing market for the implementations of some advanced technologies out there, as well as a lucrative market for companies that dedicate themselves in the name of technology.

The word "technology" is now often paired with the word ICT or Information Communication Technology. ICT is the terminology used to describe communication devices, comprising: radio, television, computers, mobile devices, satellites, etc., including the applications and services utilized, such as videoconferencing and distance learning.

Some foreign companies in the field of ICT, especially mobile phones manufacturers, whose brands and products are very popular in Indonesia, are Research in Motion (RIM) from Canada with their Blackberry, Samsung from South Korea, which introduces the Android software, Apple from the United States which recently launched their latest mobile, iPhone 5, and the last, Nokia from Finland, trying to play in the Smartphone segment by bundling their Smartphone with Windows software. The high prices of the mo-

500

thousands

bile phones, particularly in the Smartphone segment, do not discourage Indonesians. It also indicates that in addition to its size, the Indonesian population has great buying power.

Some above-mentioned foreign companies are just a small sample of the many companies that profit from the development of technology in Indonesia. In fact, all companies in Indonesia, both small and big ones, use technology to ensure the survival and the

demands towards IT personnel by domestic companies every year.

long-run of their businesses. The technology implemented in the company may be called Management Information System (MIS), which is a computer system designed to maximize the decision making effectiveness and efficiency based on three aspects: technology, people (individuals, groups, and organizations), and data. The implementations of MIS can be found in the Customer Relationship Management (CRM) software utilized by many hotels and banks to interact with

their customers and to track record sales; Electronic Data Interchange (EDI) utilized in big retail companies, which make the procurement process easier than ever and minimize paper works; the use of Global Positioning System (GPS) on transport, tour and travel companies; and so forth.

The rapid development and adoption of Information Technology (IT) in Indonesia cannot be separated from the contributions of IT geniuses and college

One of the best private universities in Indonesia, President University (PRESUNIV), has opened a graduate program: Master of Science in Information Technology (MSIT). MSIT program has two focuses, namely: Business Intelligence and IT for Industry. Some of the advantages of joining the program are, among others, students will be tutored directly by experts in the field, who are also graduates of top universities overseas. The lecturers will teach in two languages (English and Bahasa Indonesia). Upon graduating from PRESUNIV, students are expected to advance their careers in multinational companies by using a systematic and logical approach to resolve IT issues in a global and dynamic working environment, as well as contributing significantly to the development of IT in the country.

It is said that there about 25 thousand IT students from not less than 200 Higher Educations (HEs) in Indonesia graduate every year.

The number is still far behind from the 500 thousand demands towards IT personnel by domestic companies every year.

The President Post

BUSINESS

SECTION B April 2013 Vol. 2 No.4 www.thepresidentpost.com

RNI Sets Aside Rp1.75 to Stabilize Onion Prices MI/Abdus

State-owned plantation company PT Rajawali Nusantara Indonesia (RNI) is preparing a fund of Rp1.75 trillion through a warehouse receipt program to procure onions and soybean from farmers and to stabilize their prices.

“T

he program, which is launched in cooperation with Bank BRI and the Trade Ministry, is intended to stabilize garlic prices because with the program stock would meet the need all the time,” RNI President Director Ismet Hasan Putro, said in a discussion on how to overcome beef and onions crises here on Wednesday.

He said that the warehouse receipt system was aimed to purchase farmers` production and kept it as stock in the warehouses in the production centers.

“This is our concrete response and step in overcoming garlic price hikes which bring shame to the government,” Ismet said.

Ismet said he was sad to see the increasing price of garlic, skyrocketing from Rp20,000 per kg to about Rp90,000 per kg. He said that garlic business was something new to RNI, but based on its experience in handling other commodities and on its good infrastructure networks,

RNI believed that the warehouse receipt system would be successful.

“BRI assists us in terms of funding. We have warehouses in 48 regions throughout the country. This condition will enable RNI to have the competence in handling garlic supply problems,” he said.

He said RNI assured that the warehouse receipt system would benefit farmers and would ensure the availability of garlic stocks which so far had become the target of garlic business mafia.

In an effort to realize the program, RNI will in the first stage develop garlic plantations in two location in Lombok and Central Sulawesi. In North Lombok, RNI is developing garlic and shallot plantations on a 5,000 hectare of land while in Central Sulawesi, the company is developing 5,000 hectares for plasma farmers and 5,000-10,000 hectares for nucleus farmers.

The garlic price in Jakarta`s Kramat Jati wholesale mar-

Matahari Books Strong Growth Publicly traded retail company PT Matahari Putra Prima Tbk (MPPA) reported a sharp growth in net profit to Rp238.5 billion in 2012 from Rp120.3 billion in the previous year.

Company`s President Benjamin Mailool attributed the surge in profit to strong performance of Hypermart, its chain of hypermarkets.

The company, one of the country`s largest retail companies, recorded Rp10.9 trillion in income in 2012 or an increase of 22% from the previous year, Benjamin said here on Thursday.

“Hypermart outlets have performed solidly and contributed strongly to overall

performance of the company,” he said.

He said Matahari Food Division (MFD) was the main contributor with net sales totaling Rp10.4 trillion. “Since the launch of Hypermart in 2004, MFD has recorded high growth rate in gross sales,” he said.

In 2012, the company expanded business by opening new outlets, in all business lines, he added. MPPA has the largest chain of stores including 80 units of hypermarket, 28 units of supermarket, 79 units of dispensary, more than 100 units of family entertainment centers and 27 book stores, with strategic alliance in the operation of 116 department stores in more than 52 city all over the country.

Garuda Doubles Net Profit in 2012 The garlic price in Jakarta`s Kramat Jati wholesale market was recorded at Rp19,306 per kg in January. It rose to Rp25,964 per kg in February and up to March 7, it has reached Rp32,000 per kg. Last week, the prices of garlic in various parts of the country have reached a range between Rp45,000 per kg and Rp85,000 per kg. ket was recorded at Rp19,306 per kg in January. It rose to Rp25,964 per kg in February and up to March 7, it has reached Rp32,000 per kg.

Garlic was the main contributor to the February inflation with average price increase of 30.25% in 64 cities grouped in the consumer price index (IHK). The highest price increase took place in Bandung, West Java, reaching 60% and followed by Serang, Banten (56%).

Last week, the prices of garlic in various parts of the country

have reached a range between Rp45,000 per kg and Rp85,000 per kg. Chief Economic Minister Hatta Rajasa earlier asked the ministry of agriculture and the ministry of trade to improve a number of regulations on horticultural products, including onions in an effort to stabilize price fluctuations.

“I appeal to the agriculture and trade ministers to meet as soon as possible so that they could improve the agriculture and trade ministers’ regulations, particularly with regard to gar-

lic so that supply would meet demand,” he said.

However, he said that the government would not be careless in importing garlic and shallots that could disadvantage local farmers. “In the case of shallots, our farmers have planted the commodity so that we should take supply and demand into consideration to avoid over supply that would harm their interests,” the coordinating minister for economic affairs said here on Saturday.

The nation`s flag carrier Garuda Indonesia doubled its net profit to $145.4 million in 2012 from $72.7 million in the previous year.

Garuda’s President Emirsyah Satar described as satisfactory the performance of the airline. “It was as expected by financial analysts,” Satar said here on Wednesday.

The operating income of the airline rose 12.1% to $3.47 billion in 2012 , from $3.09 million in 2011, he added. Its operating profit shot up 82% to $110.8 million in 2012 from $64.2 million in the previous year.

The airline carried 20.4 million passengers in 2012, up 19.6% form 17.1 million

Emirsyah Satar in 2011. The airline also recorded an increase in cargo to 280,285 tons in 2012 or an increase of 22.2% from 229,378 tons in the previous year.

Its seat load factor (SLF) rose to 75.9% from 75.2%, and utilization of aircraft increased to 10:44 hours from 10:40 hours.

“On Time Performance” (OTP) in 2012 was 84.9%.

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April 2013 Vol.2 No. 4

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Business

BNI, Yamaguchi Financial Group Set up Joint Venture Publicly listed state lender PT Bank Negara Indonesia (BNI) has established cooperation with Japan’s Yamaguchi Financial Group (YMFG), a big holding company in the financial and banking sector.

T

he Yamaguchi Financial Group controls a number of banks including Yamaguchi Bank, which was established in 1878, Momiji Bank established in November 1923, and Kitakyushu Bank established in October 2010.

BNI, the country’s fourth largest bank in assets, said in a news release on Sunday, the cooperation with Yamaguchi was made official with the signing of a memorandum of understanding (MoU) by Gatot Gembiro Noegroho, head of Tokyo branch of BNI, and Koichi Fukuda, President of Yamaguchi Financial Group in Tokyo on Thursday.

YMFG operates in leasing, credit card issuer and is a securities company, and has a consultancy subsidiary, YM Consulting Corp, and a research institute, Kitakyushu Economics Institute. The company group based in Yamaguchi Prefecture commands a total assets of $111 billion with net income averaging $218 million a year, based on data in 2012.

Corporate Secretary of BNI Tribuana Tunggadewi said currently BNI leads other Indonesian banks in number of bank partners in Japan.

BNI is aggressive in expanding cooperation with Japanese regional banks (JRB) to take advantage of strong flows of investment from Japan to Indonesia lately, Tribuana said. BNI already established partnership with 48 Japanese banks including 47 regional banks and a Shinkin Bank or cooperative bank. Each of the bank has customers ready to invest in Indonesia, Tribuana said.

In 2012, BNI established a Japan Desk to facilitate customers from the regional banks interested in investing in Indonesia, he said. Through the service of the

Japan Desk, BNI could take the initiative to provide various facilities to help the customers of the JRB to move their operation bases to Indonesia, either by offering rupiah credit, information about Indonesian economic condition , investment climate in Indonesia, and help in securing business license in the country, he said.

BNI will see that the JRB customers in Indonesia would not turn to big Japanese banks operating in Indonesia, he said.

There are at least 150 customers of JRB in Indonesia, investing at least $75 million in the country.

Meanwhile, the opening of a new branch office in Osaka on February 20, 2013, supporting the Tokyo full branch , will strengthen relations with the JRB in the western region of Japan.

Indocement Cuts Exports, Boosts Domestic Sales Publicly traded cement company PT Indocement Tunggal Prakarsa Tbk. said it cut its exports by 84.5% but raised sales on the domestic market in 2012.

The company reduced exports to 0.1 million tons in 2012 from 0.6 million tons in the previous year to meet growing demand on the domestic market, corporate secretary Sahat Panggabean said.

Its sales on the domestic market, therefore, surged 12.3% to an all time record of 17.9 million tons in 2012 from 15.4 million tons in 2011, he said. The market share of the company`s brand of “Tiga Roda” rose to 32% in 2012 from 31.5% in the previous year, Sahat noted.

He said the company`s expansion with big investment in its Ready-Mix Concrete (RMC) busi-

ness in 2012 by installing a new batching plant, contributed significantly to increase in its market share especially in the Greater Jakarta area.

He said growing Indonesian middle class and healthy macro economic growth are among the main factors pushing up domestic demand notably in the housing market.

He said on February 22, in 2013 the company signed an initial agreement (letter of Intent) on the equipment provision service, construction and implementation with the Sinoma Group. The LOI was part of the plan to build a new factory in Citeureup, in the regency of Bogor, at a cost of up to Rp6.5 trillion, he said.

He said the company was ready to spend huge funds for

investment as it believes demand for cement in the country would continue to grow with big plans of the government to build infrastructure projects, including toll roads and power plants.

“Construction of new infrastructure projects would also boost development of property around the infrastructure,” he said. The company, therefore, will start the construction of a new cement factories with a production capacity of 4.4 million tons a year in its complex in Citeureup this year to be completed in 2015.

Company`s chief spokesman Aldo Yuliardy said Indocement has three factories in operation - one in Citeureup, one in Palimanan of Cirebon and another in Tarjun, Kota Baru, South Kalimantan. Altogether the facwww.intelasia.net

The company reduced exports to 0.1 million tons in 2012 from 0.6 million tons in the previous year to meet growing demand on the domestic market. Its sales on the domestic market, therefore, surged 12.3% to an all time record of 17.9 million tons in 2012 from 15.4 million tons in 2011.

Merpati Seeks Debt Write-off State-owned Merpati Nusantara Airlines President Director Rudy Setyopurnomo said his airlines hoped that its creditors would write off its outstanding debts.

“I should stay relaxed because Merpati owed the debts to its creditors when it was led by previous managements in the past.

We hope the government would settle them because most of the debts also came from stateowned firms,” Rudy said here on Monday.

However, Rudy refused to reveal the amount of his company`s outstanding debts. He has only been Merpati`s president director since May 2012. Earlier reports have it that Merpati`s outstanding debts reached Rp3.14 trillion.

Merpati owed the money to a number of state firms such as oil and gas firm Pertamina, Bank Mandiri, airport operator PT Angkasa Pura II, state asset management firm PPA and insurance service Jasindo. “If you have debts and debt collec-

Rudy Setyopurnomo tors come to knock on your door, you will find yourselves inconvenient,” Rudy said.

Earlier, State-owned Enterprise Minister Dahlan Iskan asked Merpati to consistently focus on running the operations of its business activities. It should not heavily think of its debts.

“Merpati should not be overwhelmed by its debts. It is really unable to pay off (now) its debts,” he said.

Last month, Dahlan Iskan praised even Merpati for its improved performance. “Actually I am surprised that Merpati is still able to serve the public under its

current condition,” the minister said.

He said he had met personally with members of the board of directors and commissioners of the company to discuss the company`s conditions. The minister asked its management to focus on developing its business and not to be overwhelmed by its debts. “Merpati must focus on its business plan so that it will not end up like Batavia Air that has gone bankrupt,” he said.

He said the company`s conditions have actually been improving as the company has now been able to regularly pay its workers, pay airport cost, fuel needs and insurance albeit through an installment scheme despite its debts left by former directors.

“It is unfair to assess present Merpati performance right now because its present debts were made when the company was led by several directors of the previous periods while the present directors have only worked for less than a year,” he said.

tories have a total production capacity of 18.6 million tons of cement a year, Aldo said.

The one in Citereup with nine production units has a production capacity of 11.9 million tons, the one in Palimanan with two production units has a production capacity of 4.1 million tons and the one in Tarjun has a production capacity of 2.6 million tons.

MTA 2013 Set to Unveil Precision Engineering Technology MTA 2013 is soon to be held in Singapore. It is the largest international exhibition of engineering industry trade event in Asia, will be showcasing tools that aid in the manufacturing of machine parts for the oil & gas industry at the Singapore Expo from 9–12 April 2013.

This leading event is held every two years and consistently delivers buyers of precision engineering technology from across the whole Asia and from all manufacturing sectors.

With Singapore being the key manufacturing hub in Asia, coupled with the prestige of MTA being the premium market place for both international and regional machine tool brands, MTA has long been the choice platform for machine tool brands to launch their latest products and services in Asia.

Over the four days of the show, this event traditionally attracts more than 13,700 visitors and 860 exhibiting companies and generates more sales and more media interest than any other marketing platform.

MTA 2013 will be putting up a Capabilities Hub – a showcase featuring a group of precision engineering enterprises that provide a comprehensive range of products and services catering to high

With rising need for state-of-theart equipment and tech capabilities for highly demanding manufacturing environments, MTA2013 will offer industry buyers a wide selection of products and solutions specifically fashioned for these sectors.

support, these companies include A&One Precision Engineering, ACP Metal Finishing, Beyonics Technology, CEI Contract Manufacturing, Chinyee Engineering & Machinery, Frontken (Singapore), Fujicon Engineering, Hup Fatt Brothers Engineering, Index Precision Industries, JCS-Vanetec, JEP Precision Engineering, Meiban Group, Microcast, Nanotechnology Manufacturing, Onn Wah Precision Machining, Racer Technology, Solidmicron Technologies, ST Kinetics Integrated Engineering, Trek 2000 International, Tru-Marine, Vigor Precision Engineering and Wah Son Engineering.

value sectors such as Aerospace, Complex Equipment, Medical Technology and Oil & Gas. With rising need for state-of-the-art equipment and tech capabilities for highly demanding manufacturing environments, MTA2013 will offer industry buyers a wide selection of products and solutions specifically fashioned for these sectors.

In conjunction with MTA2013, the Singapore Institute of Manufacturing Technology (SIMTech) will be organising the Precision Engineering Centre of Innovation (PE COI) Annual Conference 2013 on 11 April, and also exhibiting at the event from 9 – 11 April. Visitors will not only get to witness a centrepiece booth by SIMTech, they will also have the opportunity to network and interact with industry and business thought leaders at the PE COI Annual Conference.

Regarded for their high levels of competency, quality control systems, fast response & turnaround and excellent after-sales

For more information on the MTA 2013 and online registration please visit the website at: www.mta-asia.com

www.thepresidentpost.com

April 2013 Vol.2 No. 4

B3

Investment

Pertamina to Build $9.7 b Oil Refinery The country needs more oil refineries to meet domestic demand for refined oil products including oil fuels. The country has been heavily depended on imports for oil fuels.

T

he government has told state oil and gas company PT Pertamina to build an oil refinery with a processing capacity of 300,000 barrels of crude oil per day.

The project to cost around Rp90 trillion ($9.7 billion) will be financed with funds from the state budget, Oil and Gas Director General Edy Hermantoro said here on Tuesday. The government will have a participating capital in the project, Edy said here on Tuesday.

Pertamina, which owns all six oil refineries in the country,

has the competence and experience in building as well as in operating oil refineries, he added. “Pertamina knows all about the specifications of refinery and types of oil products. Pertamina needs only to collaborate with us,” he said.

The country needs more oil refineries to meet domestic demand for refined oil products including oil fuels. The country has been heavily depended on imports for oil fuels. The government has failed to attract investors to build more oil refineries in the country.

Pertamina officials have said

ANTARA

few investors are interested in oil refining industry as the profit margin is not attractive while the government is not ready to offer incentives.

Edy said his office has just held an internal meeting to discuss plan to build a new oil refinery. He said Pertamina will first conduct feasibility study and prepare front-end engineering design of the project to be built integrated with petrochemical factory.

The government has set aside Rp250 billion through the state fund to finance feasibility study, he said. Feasibility study will cover basic design, basic engineering design, front-end engineering design and final investment decision, he said.

Tender of engineering, procurement, and construction

would follow after the feasibility study has been all wrapped up, he said. Construction is expected to start in 2015-2016 to be completed in 2018, he added.

The project will be built on a land piece owned by Pertamina in South Sumatra either in Plaju-Sungai Gerong or Katimpa Bengkok. Crude oil as feedstock for the oil refinery will be imported including from Iraq, Edy said.

Meanwhile, the government has asked Pertamina to make a decision on the status of cooperation on oil refinery projects with Saudi Aramco and Kuwait Petroleum. “Before June, there would be a decision,” he said.

Pertamina plans to team up with Kuwait Petroleum Company to build a refinery project in Balongan, West Java, and with

PLN Constructing Rp431 b Submarine Cable Project State electricity company PT Perusahaan Listrik Negara is building a submarine electric cable between neighboring islands of Batam-Bintan in the Riau Islands province.

The project will cost an estimated Rp431 billion including Rp47.5 billion for over land cable to the capital city of Tanjungpinang, PLN President Nur Pamudji said here on Thursday.

PLN cooperates with Viscas Corporation of Japan and PT Karya Mitra Nugraha in install-

ing the submarine cables, Pamudji said. The project to transmit power from Batam to Bintan, is expected to be completed in mid 2014 or 14 months after the signing of the contract.

Pamudji said building the submarine cable is more efficient than building own power plant on Bintan, as the power requirement on the island is relatively small. Bintan needs only 43 megawatts of power in day time and a little more at night, he said. PLN will buy the power from PLN Batam its subsidiary

Nur Pamudji on Batam to be distributed to Tanjungpinang on Bintan, only a few miles south of Singapore.

PLN Batam president Dadan Kurniadipura said his company

would build a number of power plants to supply power to Bintan including a gas fired power plant at Tanjunguncang with a capacity of 120 MW and a coal fired power plant at Tanjungkasam .

Pamudji said PLN has no plan yet to export power to Singapore, saying the construction of submarine cables has nothing to do with any plan to export power to the neighboring country. Even if export is to be made it would not be through the Batam-Bintan cables, which has limited capacity, he said.

Saudi Aramco to build one in Tuban, East Java. The two projects to cost each around $9 billion are also expected to be operational in 2018. Negotiations with the two Middle East oil giants on the projects have dragged on for years over incentives.

Currently Pertamina with six refineries has a processing capacity of 1.031 million barrels of crude oil per day. The six refineries include one in Dumai, Riau with a processing capacity of 170,000 barrels of crude oil, Plaju, South Sumatra with a processing capacity of 118,000 barrels, Cilacap,Central Java with a processing capacity of 348,000 barrels, Balikpapan, East Kalimantan 260,000 barrels, Balongan, West Java 125,000 barrels, and Kasim, Papua Barat 10,000 barrels per day.

Pertamina plans to team up with Kuwait Petroleum Company to build a refinery project in Balongan, West Java, and with Saudi Aramco to build one in Tuban, East Java.

The two projects to cost each around $9 billion are also expected to be operational in 2018.

Chinese Envoy Calls on RI to Improve Investment Climate Chinese Ambassador Liu Jianchao has suggested that Indonesia improve its investment climate to maintain its robust economic growth.

“Indonesia should work harder to improve its investment climate to attract more foreign investors,” said Liu in an interview with ANTARA here Friday.

Though some foreign investors have complained about the Indonesian investment climate, they will continue to invest in the country, he said. Indonesia is still

in the process of learning how to create a conducive investment climate by maintaining political stability and security, he said.

“I think that China also underwent the same process when it started investment policy reforms,” he said. He added economic cooperation should be based on mutual respect and mutual benefit by avoiding benefit in one side only.

enough, and I have asked the people of China to invest in Indonesia,” he said.

Liu said that Chinese investors will invest mainly in the infrastructure sector to support development projects in a number of regions in Indonesia. He also said that a number of Chinese banks are also operating in Indonesia to finance several development projects.

He said though IndonesiaChina trade in 2012 reached $66.6 billion, both countries still need to improve their economic cooperation. “Trade itself is not

“Chinese investors will be more interested to come to Indonesia if the domestic investment condition is well maintained,” Liu said.

April 2013 Vol.2 No. 4

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www.thepresidentpost.com

Infrastructure

KADIN: Financing Institution for Infrastructure Urgently Needed www.indonesiainfrastructurenews.com

The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) has urged the government to set up a financing institution for infrastructure development in order to boost investors’ interest.

C

hairman of Development Standing Committee of Kadin Indonesia Bobby Gafur Umar said that in addition to land acquisition and bureaucracy, funding has is also a major obstacle to the development of infrastructure.

“The weak climate of infrastructure financing has hampered various infrastructure development [projects],” he said.

According to him, in investment economic value that is at-

tractive to the investors is needed so that infrastructure development can be supported by the private sector. Ideally, 70-80 percent of infrastructure development is supported by the private sector.

He explained that banks are reluctant to finance projects that are economically less attractive.

Furthermore, the credit terms given for the construction of infrastructure to support the programme in remote areas is on average 10-15 years.

“Hence, there will be long-term financing with low interest and in accordance with the guarantee criteria,” he said.

Investment economic value that is attractive to the investors is needed so that infrastructure development can be supported by the private sector.

Therefore, Kadin has urged the government to establish a financing institution, be it in the

form of Infrastructure fund or bank, which is able to provide loans with low interest rates.

He stated that there are already such financial institutions in other countries, so it is not surprising if the conditions and quality of their infrastructure are better.

“We used to have Bapindo before the crisis, but until now it is still only a discourse of the government to provide financial institutions that can ensure the development of infrastructure.”

According to him, the source of funding from financing institutions can be from the Asian Development Bank or government bonds.

131 Ports Development Completed in 2014 A total of 131 ports in Indonesia will have their improvement and development works completed by the end of 2014. Thus, there will be 165 harbours ready to support economic growth, since 34 ports were already developed in 2012.

According to Minister of Transportation EE Mangindaan, improvement and development of the ports are in line with the infrastructure development program within the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) in order to establish connectivity while ensuring the safety and security of transportation.

“The ports being prepared are mostly in Eastern Indonesia,” said Mangindaan.

He said that from the 34 ports that were already improved and built in 2012, 28

of them are in eastern Indonesia.

Meanwhile, of the 131 ports being improved and built in 2013 and 2014, 108 ports are located in eastern Indonesia.

According to Mangindaan, increases in port capacity and the construction of new ports are also to work along with the principle of cabotage (operating rights), which have been nurturing the shipping industry in Indonesia. Presidential Instruction No. 5/2005, which contains the cabotage principle, makes the Indonesian National Shipping host in their own country.

If in March 2005 the number of Indonesian-flagged ships was 6,041 ships, in January 2013 the number will grow rapidly to 11,961 units, registering a 98 percent increase.

“The share of national freight was 61.3 percent in 2005, and in 2012 this increased to 98.85 per cent. As for the share of overseas-bound cargo, growth has also been recorded, from 5.7 percent in 2006 to 9.8 percent in 2012,” he said.

40 MP3EI Projects Worth Rp 337 Billion Prioritized The government will prioritize the construction of 40 infrastructure projects in the Master Plan for the Acceleration and Expansion of Indonesia Economic Development (MP3EI). The projects with a total investment value of Rp 337 billion will be undertaken in 2014-2017.

Deputy for Infrastructure and Regional Development of Coordinating Ministry for Economic Affairs Lucky Eko Wuryanto said that of the 40 projects, 15 projects with an investment of Rp 36.2 trillion will see groundbreaking no later than in 2014.

Meanwhile, 25 projects worth

Rp 300.8 trillion will have their groundbreaking in 2015-2017.

“The investment value includes estimated cost of land acquisition. However, there are also some projects whose land acquisition cost estimation is not known yet,” said Lucky in a document of the Committee for the Acceleration and Expansion of Indonesia Economic Development (KP3EI).

Based on data from KP3EI, the largest investments are still made in Java Corridor and Sumatera Corridor. In Java Corridor, the plan is to build as many

as 10 projects worth Rp 131 trillion and in Sumatera Corridor there will be 12 projects worth Rp 111 trillion. In Kalimantan Corridor five projects will be undertaken worth Rp 41 trillion and Sulawesi Corridor will have seven projects worth Rp 61 trillion.

Meanwhile, in the Corridor of Bali and Nusa Tenggara, there are only three projects worth Rp 4.1 trillion and the Papua-Maluku Islands Corridor will have only two projects worth Rp 3.3 trillion. In addition to the projects that will be built in the six corridors, there is also a nation-

Based on data from KP3EI, the largest investments are still made in Java Corridor and Sumatera Corridor. al-scale project included in the priority infrastructure projects, namely the Palapa Ring project with an investment of Rp 2.8 trillion.

“The projects in eastern Indonesia are highly dependent on the State Budget (APBN) and

funding from state-owned enterprises (BUMNs), while projects in western Indonesia are potentially funded using public private partnership (PPP) scheme,” said Lucky.

Two projects with the biggest value, he said, will be undertaken in Karawang, West Java, namely the Port of Cilamaya worth Rp 40.34 trillion and Karachi Airport worth Rp 36.2 trillion. The two projects will begin construction in 2017, respectively.

The government, he added, will also build the Kuala Tan-

jung Port in Sumatera Corridor, which will require an investment of Rp 27 trillion in 2017, Purukcahu-Bangkuang Mangkatip railway line in Kalimantan Corridor worth Rp 22 trillion in 2017, an international port in Bitung in Sulawesi worth Rp 31 trillion in 2017, South Bali Drinking Water Treatment System (SPAM) in Bali - NTT Corridor valued at Rp 2.7 trillion, and the Enorotali- Tiom road worth Rp 1.68 trillion in 2016.

In addition, the government has included the construction of eight trans-Sumatra toll road

segments, namely the MedanKuala Namu toll road valued at Rp 1.4 trillion, the KualanamuTebing Tinggi toll road worth Rp 3.45 trillion, the Medan-Binjai toll road worth Rp 2.03 trillion, and the Palembang-Indralaya toll road worth Rp 1.73 trillion. There are also the Pekanbaru-Kandis-Dumai toll road worth Rp 14.78 trillion, and the Bakauheni-Terbanggi toll road valued at Rp 22.92 trillion, the Tebing Tinggi-Kisaran-Rantau Prapat toll road worth Rp 13.5 trillion, and the Lubuk PakamTebing Tinggi toll road worth Rp 6.84 trillion.

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April 2013 Vol.2 No. 4

B5

Transportation Garuda Indonesia Receives Two International Awards of Excellent Services

Government to Operate 24 New Airports up to 2015 Development of the new airports is needed to accommodate the ever-rising passenger traffic.

T

he Ministry of Transportation (Kemenhub) has stated it will operate 24 new airports during 20132015. Some 12 airports of these will operate this year. “In 2014 and 2015, we are also ready to operate nine airports in the eastern region and three airports in western Indonesia region,� said Minister of Transportation (Menhub) EE Mangindaan.

Menhub named the 12 new airports: Kuala Namu Airport (Medan), Muara Bungo (Jambi), Pekon Serai (West Lampung), Bone (South Sulawesi), Bawean (East Java), as well as Sumarorong (Mamasa), Kufar (East Seram), Tual Baru (Maluku), Saumlaki Baru (Maluku), Waisai (Raja Ampat), Kamanap Baru (Serui), and Waghete Baru.

Development of the new airports is needed to accommodate

the ever-rising passenger traffic.

In addition, the new airports can also reduce the density of the old airports, which are difficult to develop. Thus, the government has considered building new airports in metropolitan cities with multiple airports system.

The new airports are also intended to increase accessibility to isolated areas, such as disaster-prone areas, border areas, and areas that have limited access to transportation, both by sea and land.

Besides, the government has

(Surabaya), Ahmad Yani (Semarang), Temindung (Samarinda), and Labuan Bajo. Construction of JAATS [Jakarta Automatic Air Traffic Service] Building is also underway and targeted for completion in 2013.

EE Mangindaan also planned to construct and develop several existing airports as part of the MP3EI program, including Soekarno-Hatta (Jakarta), Ngurah Rai (Bali), Juanda

Mangindaan said that the construction of two new airports, namely Kertajati Airport (Majalengka) and Karawang Airport, is also on track. “The construction of the Kertajati Airport starts in 2013 and completion of the feasibility study of Karawang Airport is targeted for this year,� he said.

ciation (INACA) Emirsyah Satar said that Indonesia has only 13 aviation schools, compared with 1,076 schools in the US and 369 in the European Union. The nation’s current pilot schools can only produce 300-400 graduates every year. Several pilot courses development held by the Ministry of Transportation is expected to gradually increase the number of graduates per year, starting from 500 people.

Baltic Aviation Academy noted that in five years pilots in Indonesia will be as needed as electricians in Europe. Indonesian avi-

ation market will reach a phase of inducting new aircrafts nobody can pilot, due to the lack of aviation specialists. Effective cadet training programs, installing new full flight simulators, inducting additional aviation training such as Aviation English to deal with the upcoming safety issues and bringing back pilot profession its previous attractiveness are needed to outrun the upcoming economical losses for the air companies. “The pilot demand is so high that Indonesia may turn into the situation Northern Asia encountered several years ago. Airlines

inducted new aircrafts into their fleet but due to the lack of decent number of specialists–pilots and technicians were unable to start operations,� said Ricardas Ramoska, Executive Business Developer in Asia Pacific at Baltic Aviation Academy.

Commenting on the pilot shortage situation, Boeing’s Flight Services unit chief customer officer Roei Ganzarski noted the concern is that demand for aircraft and air travel in the whole Asia region is already outpacing the growth in “provision of pilots and mechanics�. “Here

The consumers’ assessment for Garuda’s service excellence was far higher than their assessments for the other airlines operating in Indonesia.�

Ira Soekirman Roy Morgan International Director

& Sullivan, a U.S.-based international business research and consulting agency.

The award resulted from the agency’s research on airline firms providing regular and full service flights that transport at least 20 million passengers per year, airports and plane maintenance service firms.

ICAO Assists Indonesia on Green Aviation Initiatives

New Aircrafts Purchased, Indonesia Needs More Pilots The increasing number of aircraft passengers every year makes Indonesian airlines plan to increase their fleets, but this is expected to create a shortage of human resources, particularly pilots.

Indonesia’s Lion Air last year signed a firm order for 230 Boeing 737s, and ordered 234 New Airbus this year. The national carrier Garuda Indonesia and its subsidiary Citilink plan to increase their combined fleet to 194 aircraft in 2015 from the current total of 97.

However, Chairman of Indonesian National Air Carriers Asso-

Garuda Indonesia earned two awards for its service excellence awarded by two international consulting agencies. The state-owned airline company earned “2012 Domestic Airline of the Year� as 93.3 percent of 28,000 consumers in Indonesia responded of satisfied flying with the airline throughout last year in a survey carried out by an Australia-based Roy Morgan Research.

Roy Morgan International Director Ira Soekirman stated, “The consumers’ assessment for Garuda’s service excellence was far higher than their assessments for the other airlines operating in Indonesia.�

The airline also received another the award titled “ASEAN Premium Airline of the Year�, awarded by Frost

in Asia-Pacific we’ve already heard of a few airlines that have already reduced their operations or even grounded airplanes because they don’t have the people to fly them,� said Roei.

From 2012 to 2030 the world’s airlines need to recruit 460,000 new pilots, and Asia Pacific accounts for 185,600 of that total, states Boeing’s 2012 Current Market Outlook projection. This means that the region will face a need of 9,684 pilots per year, which will make it the main customer in this type of labor market.

The International Civil Aviation Organization (ICAO) said it has formalized a new project with Indonesia aimed at improving the management and reduction of its aviation carbon emissions.

The large-scale Environmental Measures Project will be undertaken between the Ministry of Transport and ICAO’s Technical Co-operation Bureau (ICAO-TCB). It reflects Indonesia’s determination to meaningfully address the environmental performance of its air transport sector over the near- and longer-term, while addition-

ally supporting recent presidential decrees on greenhouse gas emissions.

ICAO-TCB will be working directly on the new project with the Directorate General of Civil Aviation. The objectives include a master plan for legislative improvements on emissions, Green Flights and Green Airports operational programs, more efficient airspace design utilizing Performance-Based Navigation guidelines, advice on appropriate market-based measures, as well as initiatives relating to alternative fuels and the development of a comprehensive emissions inventory, ICAO said.

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Minister, Ministry of Public Works

Dr Bambang Susantono

Luky Eko Wuryanto

Vice Minister, Ministry of Transportation Indonesia

Deputy Minister of Infrastructure & Regional Development Coordination, Ministry of Economic Affairs

Emirsyah Satar CEO, Garuda

Prapat Chongsanguan Governor, State Railway of Thailand

Tan Sri Bashir CEO, Malaysia Airports Holdings Berhad

Silvester Prakasam

Director – Fare System, Land Transport Authority

Desmond Kuek CEO, SMRT

Tommy Soetomo

President Director, Angkasa Pura I

Oakkar Tun CEO, Air KBZ

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April 2013 Vol.2 No. 4

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www.thepresidentpost.com

Events Review BREAKFAST DIALOGUE

The Key to Success The President Post/Reza Ganesha

His success began as the founder of PT Bank Mayapada International Tbk. (Mayapada Bank), which has now grown into a large and listed bank. He then expanded his business by penetrating the healthcare business, property, duty-free shops and media, and in the course of it all reaping numerous business awards.

O

n a breakfast dialogue held at the Financial Club Jakarta, Tahir shared his point of view on what success is and the essence of being a good entrepreneur.

According to Tahir, the definition of success is different for each person. “For me, family is the most important thing, and when I have good children and I am proud of them, then I feel successful,” he explained.

In conducting his business, Tahir considers three main things. First, he understands well his financial position. “I’m not going to do a business, if I am not able to finance it. I know my strengths and weaknesses,” said Tahir.

Second, the importance of teamwork – people who really understand his mindset, culture, and who can implement his ideas and vision. Third is the future prospect of the business.

As an entrepreneur, Tahir encourages other entrepreneurs to give full commitment to Indonesia. He quoted a Chinese proverb that says: “We are born, grow and die in one place”. Tahir said that Indonesian entrepreneurs should create jobs and value for the welfare of the people. Being entrepreneurs is only a vessel or

a bridge to reach higher goals.

Those goals, according to him, are to create higher value in life and to create happiness.

Tahir explained that Steve Jobs and Bill Gates are entrepreneurs that successfully created higher value in life. “Bill Gates makes chips for notebooks for Third World countries so more people can get better education,” he said.

An entrepreneur also has to create happiness. “Start from our family. If you have a bigger opportunity, you can extend happiness to your staff. With bigger capacity, you can bring happiness to the community. People surrounding you will get benefit because you are a good entrepreneur,” Tahir explained.

Regarding Indonesia’s economic condition, Tahir stated that Indonesia needs to export more skilled labor. Only when people enjoy better living will Indonesia’s economy improve, Tahir said.

Singapore, he said, has a central power government but is not corrupt.

“Absolute power corrupts absolutely, but it doesn’t happen in Singapore,” he stated, adding that Singapore also prepares its future generations by improving the country’s education and healthcare.

The President Post/Muljadi Suganda

The 4th International Conference and Exhibition on Corporate Social Responsibility The President Post/Rians Rivco

JAVA JAZZ 2013:

The Biggest Jazz Festival in the World

It’s better for the company to implement CSR according to the stakeholder’s will and not only to the shareholder’s will. The company has to be able to embrace the immediate societies to become good partners.”

Kuntoro Mangkusubroto Deputy of Supervision and Management of Development (UKP4)

Indonesia Business Links (IBL) held the bi-annual conference on CSR: “The 4th” (ICCSR) on 13-14 March 2013 at Balai Kartini Exhibition & Convention Center, Jakarta.

Deputy of Supervision and Management of Development (UKP4) Kuntoro Mangkusubroto said that the world of business has to make the role of CSR more than only the result of the government’s demand, for it has to be developed innovatively and relevant to local societies in order for them to raise their levels of prosperity.

“It’s better for the company to implement CSR according to the stakeholder’s will and not only to the shareholder’s will. The company has to be able to embrace the immediate societies to become good partners,” he said.

Moreover, it is hoped that the world of business could give understanding towards society over the public perception that CSR funds were coming from donations. Kuntoro denied this kind of perception, telling the audience that it made societies depend on CSR activities implemented by the company.

Entering its 9th edition this year, the biggest jazz festival in the world, Java Jazz Festival 2013, once again presented colossal jazz festivities at the Jakarta International Exhibition Center (JIEC) over the weekend of 1-3 March 2013 with the bold theme: “Jazz up the World”.

Joined by over a thousand of Indonesian and international performers in 187 shows on 17 performance stages, the three-day festival definitely transformed Jakarta into the Mecca of Jazz.

Joss Stone, Basia, Craig David, Lisa Stansfield,

Roberta Gambarini are several top world artists that performed in the festival.

Constantly supported by the Ministry of Tourism and Creative Economy and the Minister of Trade, the Java Jazz Festival has transcended the scene of music. The festival has become an icon of Indonesia; a spectacular event that brings the world to Indonesia, at the same time spreads the good news on Indonesia to the world.

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April 2013 Vol.2 No. 4

B7

Pictorial Events The President Post/Rians Rivco

JIDD 2013 and APSDEX Exhibition JIDD is a defense dialogue forum that brings together the leaders, military officers, academics and policy makers from Asia Pacific region, other Asian countries, Europe and America.

M

inistry of Defense held Jakarta International Defence Dialogue (JIDD) 2013 at the Jakarta Convention Centre. In conjunction with the event, APSDEX was also held to provide exhibition and conference to promote cooperation on defense and security industry.

JIDD is a defense dialogue forum that brings together the leaders, military officers, academics and policy makers from Asia Pacific region, other Asian countries, Europe and America.

The speakers at the international dialogue forums were,

among others, Coordinating Minister for Legal, Political and Security Affairs Djoko Suyanto, Foreign Minister Marty Natalegawa, Singapore Defense Minister Ng Eng Hen, Malaysia Defense Minister Ahmad Zahid Hamidi, Pakistan Defense Minister Syed Naveed Qamar and other state leaders.

President Susilo Bambang Yudhoyono opened the Jakarta International Defence Dialogue (JIDD) 2013.

President of Indonesia Susilo Bambang Yudhoyono and President of East Timor Xanana Gusmao took a tour at the APSDEX exhibition area.

The ministers at the opening ceremony of JIDD 2013 held at the JCC on 20-21 March 2013.

The President Post/Rians Rivco

Suriname’s Foreign Minister Visit to Indonesia Suriname’s Foreign Minister Winston G. Lackin visited Indonesia to boost cooperation on engineering, agriculture, and energy. Minister Lackin also visited the Governor of Yogyakarta Sri Sultan Hamengkubowono X. Indonesia and Suriname has strong bilateral relations since the arrival of Javanese immigrants in Suriname in 1890.

Approximately 15% of the population of Suriname are descendants of Java. Some of them sit on the Cabinet, including Minister of Interior Affairs, Minister of Trade, Minister of Agriculture, Livestock and Fisheries, Ministry of Youth and Sport, Ministry of Planning, Land and Forest Management, and Minister of Development of Technology and the Environment.

LEFT TO RIGHT: Minister of Foreign Affairs of Suriname Winston G. Lackin with Indonesian Foreign Minister Marty Natalegawa.

The President Post/Rians Rivco

Islamic Development Bank to Open Office in Indonesia The Government of the Republic of Indonesia and the Islamic Development Bank (IDB) signed an agreement on IDB’s office establishment as part of raising international financing cooperation between both sides.

The signing was made by Finance Minister Agus Martowardojo and President of IDB Group

Dr. Ahmad Mohamed Ali AlMadani at the office of the Ministry of Finance.

“The total amount of aid to Indonesia from IDB about $3 billion, 54% for public sector finance, and the rest for international trade and private,” said Agus Martowardojo.

IDB is an international financial institution based in Jeddah, Saudi Arabia, and aims to encourage economic and social development of Muslim countries with Sharia principles. IDB membership currently consists of 56 countries with 4 regional offices and representatives in the 12-nation region.

The signing ceremony of the Host Country Agreement for the opening of IDB Group Country Gateway Office in Indonesia implemented by the Ministry of Finance RI Agus Martowardojo and President of the IDB Group Dr. Ahmad Mohamed Ali Al-Madani

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April 2013 Vol.2 No. 4

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Pictorial Events Mandala Receives New Airbus A320 The President Post/Rians Rivco

Mandala Airlines, an airline with affordable rates, welcomed the latest Airbus A320 to complete the company’s plan to grow.

With the presence of this Airbus A320, Mandala now has seven planes to serve the needs of Indonesia’s growing market.

Ribbon-cutting ceremony by Jusman Syafii Djamal, President Commissioner of PT Mandala Airlines (left to right) Alit Sadikin, General Manager of Terminal 3 Soekarno Hatta International Airport, Brata Rafly, Commercial Director Mandala Airlines, Jusman Djamal, President Commissioner PT Mandala Airlines, and Paul Rombeek, President Director of Mandala Airlines.

Indonesia Australia Business Council Gathering The President Post/Heros Barasakti

Indonesia Australia Business Council (IABC) held a members gathering at Hotel Intercontinental Jakarta on Wednesday (20/3). The event was opened by speech from Vice President of IABC Peter Fanning.

The event was intended to give appreciation to Ramsay Health Care, which was established in 1964 in Sydney, Australia. Ramsay is now becomes one of the largest private hospitals in the world.

The gathering was attended by about 50 members from several countries.

Opening speech by Peter Fanning

Philip Morey and Peter Fanning

Edlyn and Shinta

Richard Slaney and Leigh Dixon

Wine Tasting at Polo Lounge The President Post/Heros Barasakti

Polo Lounge held a Wine Tasting on Friday (22/3). Polo Lounge provides several types of wine, such as Cabernet Sauvignon Subercaseaux Chateau, Chateau Subercaseaux Sauvignon Blanc, Delicato Merliot, and d’Arenberg Stump Jump Red. Polo Club also provided lucky draws to 30 expatriates that attended the event.

Polo Lounge is a gathering place for local and foreign executives located on the 2nd floor of Menara Batavia Jakarta.

The President Post

LIVING

SECTION C April 2013 Vol 2. No. 4 www.thepresidentpost.com

Mindfulness Meditation: Essential, but Not Easy There are hundreds of forms of meditation, but among the best known in the U.S. is mindfulness meditation.

By Mary MacVean

I

’m not the quiet type. But this was my idea. So earlier this year, I drove most of a day to reach Spirit Rock Meditation Center in Marin County to immerse myself in the practice of mindful meditation. To be still, clear of worry over career, my teenage sons’ futures, the renovations of our old house. To see whether I could stop – just stop – for five days and perhaps for a little bit each day afterward.

Not talking turned out to be easy. Meditation, however, is hard work.

In the last decade or so, meditation has gone mainstream – practiced by buttoned-down professionals, prison inmates, public school students, Hollywood celebrities, even the military and, reportedly, Bill Clinton.

It’s being studied by scientists for its effects on blood pressure, depression, pain and attention problems. In our racing-forward lives, we are reaching back thousands of years for wisdom about living.

There are hundreds of forms of meditation, but among the best known in the U.S. is mindfulness meditation, and that’s what I embraced at Spirit Rock.

Diana Winston, who lived for a time as a Buddhist nun and now is director of education at UCLA’s Mindful Awareness Research Center, defines it: “Paying attention to present moment experiences with open, curious attention and a willingness to be with what is.”

It’s spiritual but not religious – the way many people view their place in the universe these days.

The idea is to gain clarity, wisdom and freedom, to end up feeling compelled to behave with integrity and compassion.

There were nearly 100 of us, who paid $460 to $885 (on a sliding scale) for the retreat called “Essential Dharma Meditation.”

Our days were scheduled from 6 a.m. to 9:30 p.m. with sitting meditation, walking meditation, eating meditation, working meditation (chopping vegetables was my daily chore). No reading, no writing, no cellphones.

Mark Coleman, one of my

teachers at the retreat, says people typically arrive at Spirit Rock “exhausted [and] burned out.”

After a couple of days, “this gets exaggerated, because we start feeling how completely exhausted we are. But “people usually leave feeling buoyant, grounded, more clear. Brightness in their eyes. Body more upright.”

Walking outside, a few minutes before dinner, my worries were calmed by the rolling, grassy hills and the wide-open sky. At least the setting was beautiful.

Meals were vegetarian, buffet style, simple but fresh and delicious. We bused our dishes, lining up two at a time to scrape every last bit for compost. One of the few sounds at meals was that particular clink of utensils hitting Corelle dinnerware. I especially appreciated the silence at this time: no pressure to chat about hometowns, jobs, families.

After dinner, we heard from the teachers at “dharma talks,” lectures on the practice of meditation, the Buddha and the retreat itself. (While we yogis, as

the teachers call us, were silent most of the time, the teachers were less so).

Facing five days of mindfulness and meditation techniques at Spirit Rock Meditation Center, she’s planning her escape. Will bliss be achieved?

We started our first sitting meditation with the direction to attend only to our breathing. If you lose track, teacher Howard Cohn said, just return to it, without judgment – one of many easier-said-than-done instructions I heard during my five days of silence.

I breathed in, expanding my chest. Suddenly, I was sorting out details of a dinner I was giving when I got back to L.A. Oops.

Back to the breath. One breath, maybe two, and my mind was off again, wondering about my son who was on a trip to Israel.

There are signs posted everywhere to preempt questions.

Signs in the bathrooms about turning lights off, using scentfree soap and shampoo, taking out the trash. Signs in the rooms about how to clean up, closing doors quietly.

We woke up at 6 a.m. One morning, I laced my boots outside under a night sky still full of stars, the clouds almost obliterating a new moon. Wild turkeys gobbled. Another morning, we emerged into cold fog.

In Uggs and Patagonia, sweats and shawls, we proceeded into the hall for the meditation that precedes breakfast. The idea is that meditating together shores up each individual effort. I couldn’t help but wonder whether people were competing to look the most serene.

We meditated on floor mats or straight-backed chairs. Each person customized his or her spot, with pillows or little kneeling platforms. Cross-legged was the predominant position. I looked around and copied other postures to find the right one for me, but no matter how I settled in, at some point, I was itching to move. Was I the only one who could not sit with ease? The silence was intimidating. What if I coughed? Just scratching my arm sounded like screeching cats.

Coleman asked us to concentrate on “just this moment.” As I

said, easier said than done.

Coleman likened the process to puppy training on newspaper. Return to the paper. Over and over, without anger. I liked the comparison. It reminded me not to be so serious as I pursued a serious goal.

We alternated meditations of 30 to 60 minutes with meals and a yoga class. Twice, we met in small groups with a teacher.

In those we talked, though not much. Cohn joked that some of us may have been planning our escape. Busted! I thought, wondering how loud my rolling suitcase would be on the walkway to the parking lot.

14 raucous wild turkeys crossing the stream.

By the second full day, I was a little headachy, a little foggy.

But my sitting – if not my meditation – improved. By the end of the retreat, there were sittings at which the ending-gong startled me.

The advice for our walking meditations was to slowly pace, perhaps for 20 steps, and feel our feet pick up and put down.

To me, the chance to walk felt like recess. I walked along the hilly crisscrossing trails, and I spotted deer, hawks and one day,

The world is not a quiet place, even when civilization is left behind. Birds and planes, motors and rolling luggage all intrude into silence. But silence is within us, even amid mortgages, children and work.

My spiritual journey was deep enough to hold me through the long drive home on the I-5 and to get me and my family started on a home practice. I plan to keep trying for enlightenment, even if I have to settle for just a slightly tamer mind. (LA Times)

Buddha, Cole said, was a privileged 20-something with time to contemplate the nature of existence, posing a question: “In spite of all my comfort and privilege, I am unhappy. Does that ring true to anyone?”

It apparently rings true to many people. UCLA’s Winston says that meditation’s moment has arrived. The other parents in her child’s preschool were so taken with her parental patience that she was asked to give them a class in mindful meditation.

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April 2013 Vol.2 No. 4

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Health

Scientists Discover New DNA Regions Associated with Three Cancers A massive gene-hunting effort involving hundreds of scientists has identified 74 newly discovered regions of DNA that are associated with breast, ovarian and prostate cancers — diseases that strike about half a million Americans every year.

T

he international project, known as the Collaborative Oncological Gene-environment Study, or COGS, nearly doubled the number of genetic markers known to be linked with the three cancers, scientists reported Wednesday. Their findings could lead to more effective ways to screen, study and treat these diseases.

“While these papers may not be what the average person is looking for — e.g., a cure for cancer — they have important near-term value” for medical researchers, said John Witte, an epidemiologist at UC San Francisco and co-author of a commentary on the work that appeared in Nature Genetics, one of five journals that published 13 studies detailing the COGS re-

sults. Witte was not a member of the collaboration.

For the last decade or so, cancer researchers have been working hard to ferret out the DNA changes associated with cancers and other common afflictions.

They examine the DNA of large groups of people with and without certain diseases to see if any genetic variations can be linked to particular conditions.

One hope has been to pinpoint the people at highest risk for developing health problems. Another has been to identify the individual genes that cause illness in the first place so that scientists can better understand how those genes cause harm and use that information to develop better treatments.

But the work has been diffi-

cult because many of the variations linked to diseases are turning out to be more rare than scientists had originally thought, said Harvard Medical School genetics professor Raju Kucherlapati, who was not involved in the COGS group.

By examining hundreds of thousands of locations on the genome in 250,000 people with and without cancer, the COGS study was able to reveal more associations than smaller studies could. In addition to confirming many genetic markers that had already been found, scientists discovered 41 new regions linked with overall risk for breast cancer, three associated with overall risk for ovarian cancer and 23 tied to overall risk for prostate cancer.

Researchers also found additional variations linked to subtypes of breast and ovarian cancer, and noted that 16 of the new regions associated with prostate cancer were linked to aggressive forms of the disease.

Generally, the risks associated with the genetic changes were modest — about 10% to 20% more than the small risks faced

Fringe Therapy May Help Heart Patients www.kcbodylogicmd.com

A treatment that removes heavy metals from the body has long been touted as an alternative therapy to combat hardening arteries. Now a 10-year, $31million clinical trial has found that chelation therapy does help heart attack patients slightly reduce their risk of serious heart problems — but not enough for the researchers to encourage mainstream cardiologists to offer it to their patients.

The trial revealed a very modest benefit for patients who took chelation therapy rather than a placebo, according to results published Wednesday in the Journal of the American Medical Assn.

The findings came in for harsh criticism by other experts who worried that the results might encourage patients to take up a still unproven and potentially dangerous treatment. “It’s a type of medical quackery that has been around for many decades,” said Dr. Steven Nissen, chair of cardiovascular medicine at the Cleveland Clinic in Ohio.

Chelation therapy was introduced around World War II as an antidote against an arsenicbased poison gas called Lewisite.

The drug tested in the JAMA study — called ethylenediaminetetraacetic acid, or EDTA — was used to treat lead poisoning in Navy personnel who repainted ships’ hulls.

About 50 years ago, it came into vogue as an apparent way to remove mineral-rich deposits of plaque that can cause arteries to harden in a condition known as atherosclerosis. Though still on the fringe, chelation therapy has been gaining traction: A National Center for Health Statistics report estimated that 111,000 patients had the expensive, timeconsuming therapy in 2007 — a 68% jump from 2002.

Researchers from 134 facilities agreed to administer a cocktail comprising disodium EDTA, vitamins and electrolytes or a placebo to 1,708 patients who were at least 50 years old and had suffered a heart attack at least six weeks earlier. The 40 infusions were spread out over more than a year.

The researchers found that chelation did reduce patients’ overall risk of heart problems, such as stroke and angina requiring hospitalization. Chelation patients’ heart attack rate

Chelation therapy was introduced around World War II as an antidote against an arsenic-based poison gas called Lewisite. The drug tested in the JAMA study — called ethylenediamine-tetraacetic acid, or EDTA — was used to treat lead poisoning in Navy personnel who repainted ships’ hulls. was 6%, compared with 8% for those on the placebo.

The strongest effect was seen with procedures to reopen the coronary artery: 15% of chelation patients needed them, compared with 18% of patients who got the placebo treatment. The difference was small, but it was just enough to be statistically significant, said Dr. Gervasio Lamas, the Columbia University cardiologist who led the study.

But the clinical trial was beset by a host of problems, said Nissen, who wrote an editorial in JAMA that was deeply critical of the study. Many of the patients dropped out of the trial, thus weakening the results, he said. What’s more, some of the patients were treated in alternative medicine centers that sold unproven remedies such as aromatherapy and crystal therapy.

Lamas said all researchers were thoroughly trained for their duties, whether they were doc-

tors experienced in clinical trials or alternative medicine practitioners with expertise in chelation treatments. He also said some patients were bound to drop out of a study that was so time-consuming. (Each infusion lasted several hours.)

JAMA Editor in Chief Howard Bauchner said the study was put through the wringer before it was published, with the results vetted by a team of cardiologists, statisticians and other researchers. It deserved to be published regardless of negative attitudes toward the paper, he said.

But the findings are far from definitive, Hochman said: “The therapy’s not ready for prime time.” Dr. Harlan Krumholz, a Yale University cardiologist who was not involved in the study, said: “It’s a terrific group of investigators who’ve addressed an interesting question, who’ve come up with a surprising result that nobody knows what to do with.”

LA Times

in the general population. To put that in perspective, Kucherlapati said, more than half of women who have the most dangerous mutations in the BRCA1 and BRCA2 genes will develop breast cancer during their lives.

But relatively small increases in risk can add up to become significant, said geneticist Rosalind Eeles of the Institute for Cancer Research in Sutton, England, co-author of a study in Nature Genetics that detailed the prostate cancer findings.

In Eeles’ paper, men who fell in the top 1% of risk were nearly five times more likely to develop prostate cancer than the rest of the men in the study. (According to the National Cancer Institute, 16% of American men will be diagnosed with prostate cancer in their lifetime.) Perhaps targeting such men for additional tests could improve screening, Eeles and her co-authors wrote.

Scientists said that looking for the small genetic changes — known as single nucleotide polymorphisms, or SNPs — in people who are already at high risk for disease could help physicians’ early detection efforts. “If you have a family history, the SNPs can improve the risk estimate,” Eeles said, adding that much more research is needed before SNP screening would be ready for use.

For the last decade or so, cancer researchers have been working hard to ferret out the DNA changes associated with cancers and other common afflictions. They examine the DNA of large groups of people with and without certain diseases to see if any genetic variations can be linked to particular conditions.

The new data also underscore how much scientists still haven’t figured out about how the genes we inherit contribute to our cancer risk. For instance, it is thought that there are more than 1,000 genetic regions associated with breast cancer. Yet only 76 common variants have been identified so far, University of Cambridge cancer researcher Douglas Easton and co-authors wrote in one of the studies published in Nature Genetics.

In all, the scientists said, about a third of the variants believed to be associated with the three cancers had been discovered. What explains the remaining two-thirds is “obviously” the $64-million question, Easton said. LA Times

Food as Medicine?

What to Make of the Claims The idea of food as medicine falls under the umbrella of holistic health, a philosophy and approach to medicine that takes into consideration the interconnectedness of the body, mind, spirit and emotions, and emphasizes balance.

What’s a healthful food and what’s a healing food?

Is there a difference? At least since the mid-19th century, when the Battle Creek Sanitarium opened its doors and people flocked there to follow John Harvey Kellogg’s regime of whole grains, nuts and frequent enemas, many Americans have sought food as medicine.

Food companies understand transform the latest super foods into products that the American palate will accept. But in so doing, they often create items that are not healing at all, and may not even be healthful.

The idea of food as medicine falls under the umbrella of holistic health, a philosophy and approach to medicine that takes into consideration the interconnectedness of the body, mind, spirit and emotions, and emphasizes balance. Holistic health has its share of chefs who work creatively with the foods they consider to be super foods.

Some of the chefs are vegan, others specialize in raw food, believing that cooking robs food of its nutritive, life-sustaining powers.

Elizabeth Eckholt, a Bay Area holistic chef, is a cancer survivor who feels that she recovered from the effects of chemotherapy through dietary changes. She has a high regard for healing foods and knows how to cook with them.

Eckholt prefers the term “balancing foods” because, she says, they assist the body in healing by helping to create an “internal balance.”

She works such ingredients into the delicious fare she makes as a caterer. They’re add-ons that bump up the nutrient value of her repertoire, including goji berries, cacao, maca root and hemp seed, bee products and aloe vera, spirulina and other “super blue-green algae,” sea vegetables and fermented foods like kimchi, burdock root, dandelion root and stinging nettles.

Good digestion is key to internal balance — this is something that even holistic health skeptics can agree upon. Eckholt refers to the body as one’s “inner terrain,” which, like a swamp, is hot, dark and wet. It can also become murky, full of sludge.

When this happens, Eckholt recommends a balancing diet, perhaps a few weeks of raw foods and green juices.

Most serious holistic chefs shun packaged “super foods.” They like to know the farmers who raise the food they buy. Eckholt seeks out raw almonds at the farmers market that haven’t been steam-pasteurized.

She’ll only use coconut water if it comes right from the young coconut. Said Eckholt: “If you’re going to try to heal your body with food, start with real food.” LA Times

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April 2013 Vol.2 No. 4

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Tourism

Pahawang Island Offers Underwater Adventure Pahawang island located in the south of Lampung province.

The small island and its surrounding offers visitors the view of white sandy beach which is home to corals such as Acropora Acuminata and anemones.

The blue-green sea water that surrounds the islands enables divers to see the rich ecosystem living in the area.

Just put on the goggles and dive in, visitors can spot on exotic fish such as clownfish (famously known as Nemo from the cartoon movie Finding Nemo), blue and purple starfish and napoleon fish swimming between the corals.

W

hen talking about snorkeling location in Indonesia, places such as southern Bali area, Bunaken waterpark of North Sulawesi or Raja Ampat in Papua may have already made its name among tourists.

But here is another place worth trying, and it is not too far to reach from the capital Jakarta. It is Pahawang island in the south of Lampung province.

That small island and its surrounding offers visitors the view of white sandy beach which is home to corals such as Acropora Acuminata and anemones. The blue-green sea water that surrounds the islands enables divers to see the rich ecosystem living in the area.

Just put on the goggles and dive in, visitors can spot on exotic fish such as clownfish (famously known as Nemo from the cartoon movie Finding Nemo), blue and purple starfish and napoleon fish swimming between the corals.

Not to mention little seahorses dancing freely around the anemones. However anyone may need to be aware of sea urchin that peeks between corals. “This island will be strong competitor among beautiful snorkeling locations in Indonesia in the future,” Reza, a visitor from Jakarta said.

Another site that’s worth to visit is Tanjung Putus area. It is actually two separate islands which seemed to be one if the sea water subside. Hence, there`s little wave in the seashore in this area. If the sea water subside visitors can walk from one island to another. Here the water is clear, and sometimes visitors may spot on jellyfish trapped in the shallow area due to water subside.

The journey from Jakarta to Pahawang island and Tanjung Putus area is quite tiring for those who use land transportation. First is taking bus from Jakarta to Merak port (Banten province). The journey will

take approximately 3 to 4 hours and cost Rp20,000 each. Then cross Sunda strait using ferry to Bakauheni port (Lampung province) for 45 minutes to one hour.

The journey using ferry (cost: Rp11,500 per person) here is quite tricky bevause it uses “first come first served” system. So if anyone who wants to get a VIP spot with air conditioner and sofa must hurry to get in line. The crew may charge an additional Rp10,000 for those who occupy the VIP room. For those who prefer sitting outdoor, there are people who rent carpet for the price of Rp15,000. The carpet can fit 5-6 people all together.

Once arriving in Bakauheni port, visitors must continue journey using rented car to Ketapang port, a small port in southwest of Lampung province. Usually the journey will take about one to two hours. There are a lot of local drivers waiting in Bakauheni port, so visitors shouldn`t be worried of not getting a rented car.

Average cost for renting a van (containing 8 people) is Rp250,000. Upon arriving at Ketapang port, take a 45-minute journey using boat to Pahawang island.

Total journey from Jakarta to

“Pasar Malam” Introduces Indonesia to the Dutch Pasar Malam Indonesia (Indonesian Fair) held by the Indonesian embassy in The Hague, the Netherlands, is a program to introduce the country to the international community, particularly the Dutch, a spokesman said.

“We have surveyed the implementation of Pasar Malam Indonesia and the result shows a very positive trend as visitors, especially those from the Netherlands said their visits to this annual event because they want to explore all about Indonesia,” the Coordinator of Media Relations of the Indonesian embassy, Hermanus Dimara, said here Tuesday.

He explained Pasar Malam Indonesia 2013, which was held from 20 to 24 March 2013, exhibited a variety of interesting potentials about Indonesia, namely its industries and development programs, cultures as well as the archipelago culinary.

“Most of visitors from the Netherlands are already familiar with Indonesia, but others said they come to Pasar Malam because they want to know about Indonesia better,” Hermanus said.

“Through Pasar Malam I can get information about Indonesia directly, which is more exciting than I could imagine,”

www.pasarmalam.indonesia.nl

Angklung Workshop at Pasar Malam Indonesia 2013. According to information obtained from the committee, the number of visitors on the fourth day reached fifteen thousand people. a visitor from Eindhoven, the Netherlands, Marcel Van Straaten said.

Meanwhile the other visitors, Irene and Marc, also expressed their great appreciation of Pasar Malam Indonesia as they could get to know in detail about Indonesia in one occasion.

“I have visited Sumatra, Java and Bali. It was very wonderful. I also like Indonesian food,” Marc said.

Indonesia Fair 2013 was held for the fourth time since 2010

Indonesia Fair 2013 was held for the fourth time since 2010 and always drew attention of not only Indonesians but also the Dutch and the international community. and always drew attention of not only Indonesians but also the Dutch and the international community.

Pasar Malam Indonesia is the largest promotional event held by the Ministry of Foreign Affairs of Indonesia over the world and is an integrated and comprehensive promotion of Indonesia`s potentials in the fields of trade, tourism, investment, arts and culture as well as the country`s culinary wealth to the Netherlands and the European public at large.

According to information obtained from the committee, the number of visitors on the fourth day reached fifteen thousand people. Amongst the government institutions and companies that support Pasar Malam Indonesia 2013 are the Ministry of Trade, the Ministry of Cooperatives and Small-Medium Enterprises, the Ministry of Communication and Information, the Ministry of Tourism and Creative Economy, the provincial administrations of Central Java, Maluku and Semarang City.

State companies that took part in the event are Garuda Indonesia Airlines, Bank Rakyat Indonesia, PT Angkasa Pura II and PT. Pelindo I - IV (Indonesian Port Corporation) as well as the Indonesian Women`s Association and the Association of Indonesian Palm Oil.

Pahawang island may take eight to ten hours. However, such long journey is worth the price as visitors set foot on the white sandy beach of Pahawang island and see for themselves the rich underwater ecosystem in the area.

local people there can provide food for you with an average cost of Rp48,000 per person. But to cook, local people usually want to give service to group of 20 or more people.

After snorkeling and playing around Pahawang and Tanjung Putus area, take a rest at Kelagian island. It is an island owned by the Navy but visitors may rent small cottages there when there`s no drill or other naval activities.

Hiring a small cottage (can fill up to 10 person) may cost you Rp500,000. For the record,

A Kang Alam, a local native living near Ketapang port, said more and more tourists visit Pahawang island every month. This, of course, brings good fortune to the locals such as himself. Business such as boat rental, tourist guide, snorkel equipment rental and cottage rental are flourishing in the area.

“Every weekend there’s always

Thriving business

a group of tourist coming to either Pahawang island or Tanjung Putus. Then they choose to rent a cottage at Kelagian island,” he said. Alam, who runs a cottage rental at Kelagian island, said he received Rp1,000,000 for the rental of two cottages per week from tourists.

His wife also gets around Rp1,000,000 to Rp1,450,000 for cooking for a group of tourists (20 to 30 person) every week.

However, he reminded tourist to keep the hygiene in the area.

Plastic waste, food wrapping waste and pieces of glass may disturb the beauty of the island, he added.

Bali to Develop Puri Tourism For Cultural Preservation The Bali Hotels Association planed to develop puri (palace) tour packages as a kingdom heritage in the island of gods for cultural preservation.

“By this tour package, tourists can learn about traditional dances, cook, making offering and others, while they can stay at residents` homes,” Executive Director of Bali Hotels Association (BHA) Djinaldo Gosana said here on Thursday.

He said the puri tour package is a combination form between rural tourism development and palaces family activities, so tourists could

enjoy cultural activities that are supported by surrounding residents.

“We have been exploring some puris in Bali for this cooperation such as the family of Jero Kuta Palace in Denpasar, Kanginan Palace in Karangasem, Gianyar Palace, Kerambitan and Penebel Palace in Tabanan, Bongkasa Palace in Badung and Singaraja Palace,” he said.

Gosana added the tourist attraction will be displayed and facilitated by the family castle, while BHA will help to repair palace which will be used as a place to stay. “The purpose of this tour is not to generate feudalism, but we want to revive good coopera-

tion between the community and family castles which has existed since ancient times,” he said.

He targeted that the castle tour packages can already be realized by the middle of 2013 at high season.

“Tourists from Europe and America usually love cultural tours, and the guides are also from castles surrounding communities,” he said adding that the rate per night is about Rp1 million.

“Our target is to present one castle in every district and hopefully it can serve a new tourism trend,” said Djinaldi.

Hotels, Travel Agents Ready for Sail Komodo A number of hotels, travel agents, and culinary services in East Nusa Tenggara (NTT) provincial city of Kupang are ready for Sail Komodo 2013, according to Kupang deputy Mayor Hermanus Man. “We have had a meeting with the managers of hotels, travel agents, and culinary services and they said everything was ready for the upcoming international ma-

rine event,” Hermanus said here on Monday.

According to him, many star hotels and non-star hotels are already available, while several other star hotels have been completed and will soon be operated in the near future for the guests and participants of the event.

“We have asked all hotel and restaurant operators here to involve in the international marine event by providing special offers to Sail Komodo guests and par-

ticipants,” Hermanus noted.

He added that besides hotels and restaurants, the Kupang city administration has also set in order a number of marine tourism attractions to greet the Sail Komodo. “Among the marine tourism attractions are the white sandy beaches of Nunsui and Lasiana where the government will soon build wave retaining wall to avoid abrasion,” he added.

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April 2013 Vol.2 No. 4

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Travel

A RAY OF HOPE AT THE

Tanjung Putting National Park We often hear about disputes between humans and orangutans. One of such disputes is the recent slaughter of orangutans in East Kalimantan.

The local oil palm farmers considered the protected species as pests despite the fact that their plantation areas were once the primate’s natural habitat. Some hunted the species for commercial purpose and to sell baby orangutans as pets after killing their mothers.

Text & photos by Adita Alaik

F

ortunately for the primate there are places that offer them protection. One such place is in the Tanjung Puting National Park (TNTP), Central Kalimantan, a spot called Camp Leakey, which was established in 1971.

The rehabilitation center was set up to train orangutans which had been kept as pets so that they could adapt and return to their natural habitat. Orangutans that lived with humans for a long time would lose their instincts to survive. At the camp they will be trained to adapt to their natural habitats and to regain their natural characteristics. Camp Leakey is opened for tourists who wanted to take a closer look at orangutans in their natural habitat. It’s a very interesting place to visit.

To visit TNTP from Pangkalan Bun, Central Kalimantan, we only need to take a 30-minute drive to the Kumai port. To reach the primate rehabilitation center, we have to use kapal klotok or a small boat that would sail for 4 hours.

The deeper we enter the national park area, the more picturesque and vivid the forest becomes. The river is narrow and only 4 meters wide.

From all the klotoks that had passed us, none of them carried domestic tourists. They all carried foreign tourists whose ages range from 5 years old to the 60s. Some went in groups, while others only with their partners.

While enjoying the serene of the nature, Ardi, who operated

the boat, suddenly screamed: “Proboscis monkeys on the right!”. And he was right, there was a group of proboscis monkeys hanging on the trees by the river. And just like us, they were enjoying their afternoon snacks, the young leaves from the trees.

It was amazing to see the bignose primate. Ardi immediately switched off the boat’s engine because he didn’t want to disturb the proboscis monkeys. Shortly after, the group of proboscis monkeys moved to other places by jumping from one branch to another. They could jump really far, however there were some who failed to land on the right spot.

“If they slip and fall to the river, there are usually crocodiles already waiting to snap them …”, said Ardi as he explained one of the food chain processes in Tanjung Puting.

“Are there a lot of crocodiles?”

“Yes, many and they’re big … with sizes of about 3 meters, 4 meters… once a foreigner was eaten by the crocodiles when he swam. He was actually already warned that there were many crocodiles here but he didn’t believe it,” said Ardi.

Soon enough some crocodiles emerged to the surface and they were quite big, maybe about three meters long.

We reached Camp Leakey when the sun was already set.

This means we could only see the orangutans the next morning. After only walking a few meters from Camp Leaky’s dock, we were greeted by a score of orangutans hanging on the branches. It seems like they have gotten used to seeing human beings.

Nevertheless we had to keep

our distance from these primates or Pongo Pygmaeus as they are called in Latin because they could let their strong curiosity get the better of them and just snap our bags and rip them open. This is why every group of tourists had to be accompanied by a park ranger.

After watching them more closely, I found a lot of similarities between orangutans and humans, for instance, the expressions on their faces seemed like they were talking. The way they cared for their children was also similar to how human moms would care for their children. The baby primates were also full of curiosity. We should be glad to have this rehabilitation center because it not only helped orangutans return to their natural habitat but it also helped improve the welfare of the local residents through tourism.

After watching them more closely, I found a lot of similarities between orangutans and humans, for instance, the expressions on their faces seemed like they were talking. The way they cared for their children was also similar to how human moms would care for their children. The baby primates were also full of curiosity.

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April 2013 Vol.2 No. 4

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Culture

Oirata: A Local Language That Faces Extinction The Oirata language, spoken in a small Maluku island of Kisar, is definitely endangered and is feared to become extinct sooner or later if nothing is done about it.

tions but not in written forms.

“Thus if the people of Oirata lose their language, they will as well lose their culture and their moral substance,” he noted.

It is the language of a minority group of people in two villages, West Oirata and East Oirata, on the island of Kisar in Southwest Maluku district, Maluku province.

B

ased on 2010 census of population, the two villages have a total population of 1,566, but only a few of them are able to communicate in Oirata language and the rest use Ambonese Malay dialect in their daily interaction. “Consequently, Oirata language is classified into an endangered language in Indonesia,” said Soewarsono, a researcher from the Indonesian Institute of Sciences (LIPI) in a seminar here on Thursday.

Concerned about the existence of the Oirata language in such a situation, Suwarsono and two other researchers from LIPI, Nazaruddin and Leolita Masnun, studied the language and the culture in 2011 and 2012.

Soewarsono said that according to UNESCO`s Ad Hoc Group on Endangered Languages, there are nine factors that can determine the viability of a language, its function in society and

the type of measures required for its maintenance or revitalization. Among the nine factors that happen to the existence of Oirata language are the intergenerational language transmission, absolute numbers of speakers, proportion of speakers within the total population, and amount and quality of documentation.

Based on their study, Soewarsono said they found that intergenerational language transmission and the proportion of speakers within the total population continued to decline.

“We have found that the speakers of over 50 years old continue to switch from Oirata language to Ambon Malay dialect when speaking to their children and grandchildren at home,” Sowarsono noted.

But he added that the language plays an important role in social structure of Oirata people because every clan in the

The Oirata tribe. Oirata is one of many endangered languages which has rich oral cultures with stories, and myths passed on to younger generations but not in written forms. two villages has its own unique myth that can be told in Oirata language during the customary system of marriage. “However, the number of speaker in the customary system of marriage also continues to decrease with the passing of time,” Soewarsono went on.

Meanwhile, Nazarudin said his team of researchers in 2013 will focus their study on the de-

velopment of orthography, the system of spelling, as part of an effort to revitalize the Oirata language. “During our research this year we will try to find the best possible solution to the problem of Oirata language in our effort to revitalize and develop the language and culture,” Nazarudin said.

Citing a statement by the Summer Institute of Linguistics (SIL), the linguistics teach-

er of the University of Indonesia said a people`s identity and culture are intimately tied to their language. He said words that describe a particular cultural practice of idea cannot be translated precisely into another language.

Nazaraudin noted that Oirata is one of many endangered languages which has rich oral cultures with stories, and myths passed on to younger genera-

N. Sulawesi Seeks UNESCO Recognition of Kolintang cybersulut.com

The traditional kolintang musical instrument from Minahasa district in North Sulawesi province needs to receive official recognition from UNESCO as an intangible cultural heritage like angklung from West Java.

Kolintang has been known all over Indonesia and was often brought in cultural missions to various countries in the world but it has not been as lucky as angklung which has been recognized as a world intangible heritage. Therefore, the provincial government of North Sulawesi will propose that wooden musical instrument of kolintang to UNESCO for an official recognition.

“We will propose kolintang to UNESCO to be recognized as an intangible cultural heritage from North Sulawesi,” local culture and tourism office spokesman Suprianda Ruru said in Manado recently.

Before that musical instrument is proposed to UNESCO, several preliminary activities will be held to unite a perception about kolintang. “Various workshops, seminars, and kolintang festival have been held in Minahasa district and elsewhere to recommend kolintang into a world cultural heritage,” Suprianda said.

Meanwhile, jazz musician Dwiki Dharmawan said in Jakarta over the weekend that a number of Indonesian students would perform kolintang music at the Internationale TourismusBourse (ITB) Berlin in Germany, on March 6-10, 2013. “A group of 15 Junior High School (SPP) students will play the kolintang musical instrument during the event of ITB Berlin in Germany,” Dwiki said here on Saturday.

The ITB Berlin is the world`s largest tourism trade fair, and the companies represented at the fair include hotels, tourist boards, tour operators, system providers, airlines and car rent-

Kolintang has been known all over Indonesia and was often brought in cultural missions to various countries in the world but it has not been as lucky as angklung which has been recognized as a world intangible heritage.

Kolintang had a close relationship with the traditional belief of Minahasa natives which was usually played in ancestor worshiping rituals. That traditional musical instrument was nearly left behind for about 100 years since Christianity came to Minahasa, but in World War II a blind musician, Nelwan Katuuk, reconstructed it accordingly to universal music scales. al companies. Dwiki said that kolintang has a chance to be listed by UNESCO as a cultural heritage because it remains a favorite music for many people, not only in Minahasa but also in other parts of Indonesia.

“Kolintang is a typical musical instrument from Minahasa, and it continues to be maintained by the local community,” Dwiki said. He noted that there were even a lot of seminars about that particular musical instrument, and therefore the performance at ITB Berlin would raise its prestige.

North Sulawesi Governor Sinyo Sarundajang has said it was the pride of the province that the traditional kolintang musical instrument could stand alongside other modern ones. He noted that kolintang could be played together with a variety of other musical equipment.

“North Sulawesi will even try to blends kolintang, baimboo music and Maengket dance because it is unique in its nature,” Sarundajang noted. He expressed hope that the Association of National Kolintang Artists (Pinkan) would be able to create

a variety of variants that have to do with kolintang.

Meanwhile, art and cultural based creative economy director general at the Tourism and Creative Economy Ministry, Ahman Syah said that amidst technological advances, kolintang remains alive and even has a place in the Pinkan organization.

“We hope the Association of National Kolintang Artists will play its active role in preserving and developing kolintang traditional music,” Ahman Syah said when opening a national semi-

nar on kolintang music in North Minahasa late in January 2013.

The seminar was organized by Pinkan in cooperation with Manado State University and North Sulawesi culture and tourism office in an effort to maintain and preserve the national culture and arts.

At the time he expressed hope that the seminar would encourage and advance the success of kulintang music among the people of Minahasa in particular and Indonesia in general.

Originated from Minahasa, North Sulawesi, kolintang musical instrument is made of light but solid local wood whose fiber construction appears in parallel lines. That kind of music can produce a long sound which can reach high pitch note as well as low pitch note when struck.

In its early days, Kolintang originally consisted of only a series of wooden bars placed side by side in a row on the legs of the players who would sit on the floor with both legs stretched out in front of them. Later on, the function of the legs was replaced either by two poles of banana trunk or by a rope which hung them up to a wooden plank.

Kolintang had a close relationship with the traditional belief of Minahasa natives which was usually played in ancestor worshiping rituals. That traditional musical instrument was nearly left behind for about 100 years since Christianity came to Minahasa, but in World War II a blind musician, Nelwan Katuuk, reconstructed it accordingly to universal music scales.

The spread of Kolintang has expanded across different linguistic and ethnic groupings, and thus it is time for North Sulawesi to propose it to UNESCO with a hope to be declared as a world intangible heritage.

Antara

Parents in the villages of West and East Oirata are no longer teaching their language to their children and are not using it actively in everyday conversation.

Nazarudin explained that the development of the orthography of Oirata language would be the first step in the effort to maintain the language from extinction.

He added that the documentation they did during their research in the previous years was limited to basic conversation and speech in traditional wedding ceremonies. “Therefore this year we will expand the documentation of Oirata language into education and transactional domains,” he said.

Nazarudin said they have documented the vocabularies of Oirata language into a dictionary, and the structure of the language into a teaching material to be taught at local schools.

According to him, the expansion of the language in these two domains was considered important for the communities of the two villages to be able to interact in their own language.

Both Soewarsono and Nazarudin reiterated that the endangered Oirata language must be preserved and maintained so long as parents in the two villages teach the language and cul-

Parents in the villages of West and East Oirata are no longer teaching their language to their children and are not using it actively in everyday conversation. ture to their children and grandchildren.

The Oirata tribe in the small island of Kisar live together with the Maher tribe who speak their own respective language.

Yoseph Kamanasa, a native speaker of Oirata, said he realized his mother tongue was under threat of becoming endangered because they have to deal with the language of Meher tribe who have much more speakers.

But he explained the people of Meher cannot understand nor speak the language of Oirata but Oirata people can speak and understand Meher language.

Kamanasa, a retired teacher, has even taken the imitative in creating a small dictionary of Oirata in his effort to maintain and revitalize his mother tongue. Therefore he pointed out that he would continue to encourage his children and others to preserve their language and identity. Antara

West Sumatra Governor Prayitno Cites Strengthening of Minangkabau Culture West Sumatra governor Irwan Prayitno said the strengthening and preservation of the Minangkabau cultural values, to be managed by the provincial regulation, is intended for the interest of the whole people.

The governor made the remarks here on Thursday, with regard to a discussion between the West Sumatra provincial government and the regional legislative assembly (DPRD) on the provincial regulation draft pertaining to the strengthening and preservation of the Minangkabau cultural values.

According to him, the strengthening and preservation of the cultural values are aimed to develop the values especially for the provincial people`s interest. He pointed out that the provincial regulation draft is also aimed to protect the culture and prevent it from missing or used by unauthorized parties.

Although the provincial regulation is formulated for the culture and the Minangkabau community, but the regulation is made based on the Pancasila state ideology and the 1945 constitution, the governor said.

Earlier, the governor said that the influence of globalization such as the promiscuous acts through sophisticated technology has undermined the Minangkabau cultural values. Globalization with its advanced technology and the dissemination of free information and communication left the point of contact between the Minangkabau and Western cultural values, Prayitno said.

The influence of the Western culture has led to the weakening of the Minangkabau cultural values which were established based on the religious teaching. The weakening of the regional cultural values have been taken into consideration in formulating the provincial

Irwan Prayitno

The strengthening and preservation of the cultural values are aimed to develop the values especially for the provincial people`s interest. regulation draft, he noted.

The governor said further that the Minangkabau ethnic communities has had their culture that has grown, developed, maintained and handed down by their ancestors since hundreds of years ago in order to meet their need. Therefore, rule of law is badly needed to control the influence of the Western cultural values in a bid to help preserve the local ethnic culture, he said.

The effort to strengthen and preserve the Minangkabau culture is conducted based on a proposal from the Custom Consultative Institution of Minangkabau Culture (LKAAM) and Village Consultative Custom (KAN), the governor said. Prayitno said Article 9 of Chapter IV relating to governance of the provincial regulation draft stipulates that the governor is assigned to invite the LKAAM dan KAN to hand a proposal on the strengthening and preservation of Minangkabau culture. Therefore, LKAAM and KAN leadership should be responsible in formulating the program of strengthening and preservation of Minangkabau culture concerned. Antara

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April 2013 Vol.2 No. 4

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Property

The Growth Potentials of Tourism Sector and Investment in Condotels www.casablancarealty.co.id

Condotel (Condominium-Hotel) is an alternative property investment amid the economic and tourism sector growth. This kind of investment is good for property investors who want to own a hotel, use it and at the same time generate profits in the form of capital gains and rents for over a certain period of time.

by the hotel which is comparative to the unit’s purchase price • Another benefit is that the investor will obtain an ownership document over the hotel unit which is generally in the form of a strata title, the profit sharing per unit will be divided proportionally in accordance with the size of the unit.

The investor should also pay attention to the one-year rental scheme, reservation convenience and staying permit through the assistance of the operator/travel agent and the sale value of the hotel unit

By Andri Marsetianto

I

ndonesia’s economy posted a 6.23% growth last year or below the 2012 revised state budget target, but it was still within the realistic target of 6.3% – 6.5%. The Central Statistics Agency (BPS) said the economic growth was driven by household spending (5.28%), government consumption (1.25%), gross fixed capital formation (PMTB) (9.81%, exports (2.01%), and imports 6.65%. The economic sectors that posted the highest growth were transportation and communication at 9.98%, trade, hotel and restaurants 8.11% and the construction sector 7.50%.

But the highest contributor to Indonesia’s gross domestic product were the processed industry sector at 23.94% and the trade, hotel and restaurant sector 13.90%.

The growth in the trade, hotel and restaurant sector was propelled by foreign tourist arrivals from January–December 2012, which reached 8,044,462 people, up by 5.61% compared to the previous year. The increase in foreign tourist arrivals was mainly seen at the main entrance points with the highest percentage: Husein Sastranegara airport, Bandung, with a 27.28% rise, Adisutjipto airport, Yogyakarta 22.35%, and Sepinggan airport, Balikpapan 7.82%.

Domestic tourist arrivals also rose in line with the growing

Choose a condotel which is located in a tourism spot or MICE market. Location will determine the occupancy rate of the hotel and therefore determine the Return on Investment (ROI) for the investor which will be guaranteed in the first two years, the price value in the secondary market and how optimum its result is during the hotel operation number of Indonesia’s middle class, hotel growth, infrastructure improvement and new flight routes to Indonesia’s main tourism areas. Aside from becoming a tourism destination, the business development of MICE (Meeting, Incentive, Conference and Exhibition) in Indonesia was also growing: around 466,000 companies are operating in Indonesia, which offer a potential that they would hold an event at least once a year at Indonesia’s business and tourism centers.

Condotel (Condominium-Ho-

The President Post/Heros Barasakti

GBC Presiden Director Setiawan Mardjuki (left) and GBC Director Suteja S. Darmono.

Beverly Hills Exclusive Pavilion:

A Promising Investment The Jababeka industrial area is seeing a growing demand for residence due to the area’s rapid growth. Jababeka is now home to almost 2,000 factories from 30 countries and more than one million workers.

The availability of pavilions or dormitories became essential because the clusters that were built in Movieland not only accommodate renters working in Jababeka area but also workers in the movie industry such as actors, film crew and others. Many local workers from outside Cikarang who wanted to come to work on time and avoid the stress of getting caught in a traffic jam also opt to live in the area.

Given such rapid growth, Jababeka Residence was quick to tap the market by launching Beverly Hills Exclusive Pavilion (BHEP) in the elite area of Jababeka Cikarang. It’s located in the heart of Jababeka, thus offering the benefit of a quick access.

The presence of schools, university, an international-class golf club and a growing commercial around BHEP, makes BHEP the best residential area for those

who want to stay in the area for quite a while but have no need to buy a house yet.

With plots of land starting from 150 square-meter and 196 square-meter building, BHEP is a lucrative investment for investors. It also applies a modern design with room sizes starting from 3 x 3.75 square-meter to 3 x 4.75 square-meter, with a bathroom in each room and room sizes depending on the type of products. BHEP owners can rent the

rooms starting from Rp1.5 million per month or earn a gross income of Rp198 million - Rp300 million per year. And also given the fact that property prices are always showing an upward trend, the investment return on BHEP is sure to become very lucrative.

The first phase of the Beverly Hills Exclusive Pavilion was already sold out during the grand launching on 16 March 2013 but the second phase will soon be put on sale.

tel) is an alternative property investment amid the economic and tourism sector growth. This kind of investment is good for property investors who want to own a hotel, use it and at the same time generate profits in the form of capital gains and rents for over a certain period of time. As an investment alternative, there are certain aspects that need to be considered when investing in condotels, such as: • Location: Choose a condotel which is located in a tourism spot or MICE market. Location

will determine the occupancy rate of the hotel and therefore determine the Return on Investment (ROI) for the investor which will be guaranteed in the first two years, the price value in the secondary market and how optimum its result is during the hotel operation • Condotels: Chain hotel operator will operate the condotels according to the hotel’s class.

The hotel’s class depends on the completeness of the furniture unit and facilities offered

• Risks in owning a condotel: In the United States, the sale of condotels is supervised

by SEC (Securities and Exchange Commision) to minimize risks that may arise in a condotel project. In Indonesia, several condotels are marketed before they were built and therefore it’s important to pay attention to the developer’s and hotel operator’s reputation. Investors should also pay attention to the costs such as maintenance, operational, marketing costs and fee for the hotel’s management because they could reduce the profit sharing for the investors. Investors also cannot use the unit anytime they wanted to. Sometimes the unit owner has to make a special reservation especially ahead of a holiday season or the national holidays.

In Indonesia, several condotels are marketed before they were built and therefore it’s important to pay attention to the developer’s and hotel operator’s reputation.

Investors should also pay attention to the costs such as maintenance, operational, marketing costs and fee for the hotel’s management because they could reduce the profit sharing for the investors.

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April 2013 Vol.2 No. 4

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Technology

Nikon D7100: Mid-End DSLR With Abundant Features The Nikon D7100 is the company’s latest upper mid-range DSLR aimed at enthusiasts and aspiring photographers. Announced in February 2013 roughly two and a half years after the D7000, it slots between that model and the D600 in the range. Nikon intends to keep the older D7000 in the current line-up.

N

ikon describes the D7100 as being the best that DX can offer, although it’s important to note this is not the long-awaited semi-pro replacement for the D300s. To be fair, the specification is now beyond that of the D300s, but the D7000 is firmly in the enthusiast rather than semi-pro category.

Compared to its predecessor the D7000, the D7100 doesn’t just offer an upgraded sensor with a higher pixel-count. It also features a significantly upgraded AF system, with 51 AF points (15 cross type) as opposed to 39 in the older model. It shares these specifications, and the MultiCam 3500DX designation with the D300S, but Nikon promises the autofocus algorithms from the D4 which could, in part, explain the extended sensitivity range.

The critical thing here is that despite the fact that the D7100 is Nikon’s third DX-format 24MP DSLR, its sensor is new, and unique in Nikon’s stable. In a first for Nikon, the D7100’s sensor lacks an optical low-pass filter (OLPF).

The improvements aren’t limited to still image capture - the D7100 also offers a nicely upgraded movie mode compared to the D7000. The D7100 will shoot 1080p video, but rather than being limited to just 24p, the new model also offers 25p and 30p options. This model also has a built-in stereo microphones and an optional 1.3X crop mode, giving an effective focal length increase of 2X (making a 50mm lens behave like a 100mm). In this crop mode 50/60i movie recording is available, which suggests it comes from 50/60p, rather than being 25/30p capture which is then segmented, but Nikon is not clear on the distinction. Certainly the cropped mode allows faster frame-rates, since stills capture (now at 15MP) increases a touch, to 7fps.

ly. The head of the camera now sports stereo microphones.

The D7100 shares the same continuous shooting speed as its predecessor of 6fps, although remember it is now shifting 50% more pixels per frame.

Like its predecessor, the D7100 will shoot 1080p video, but rather than being limited to just 24p, the new model also offers 25p and 30p options. The 1.3x crop mode is also supported for video, although the recording format changes from progressive to interlaced with the choice of 50i or 60i. The maximum recording time in normal quality is 29:59 or 20 minutes in high quality.

The D7100 measures 136x107x76mm and weighs 675g without battery. This makes it 4mm wider, 4mm taller and roughly the same thickness as the D7000, and 15g lighter.

The D7100 has an improved grip and a new texture for the mode dial, which in turn now also features a lock button to prevent it from turning unintentional-

Compared to its predecessor the D7000, the D7100 doesn’t just offer an upgraded sensor with a higher pixelcount. It also features a significantly upgraded AF system, with 51 AF points (15 cross type) as opposed to 39 in the older model.

Nikon D7100 key features: • 24.1MP DX format CMOS sensor, with no OLPF • EXPEED 3 processing • ISO 100-6400 standard, up to 25600 expanded • Max 6 fps continuous shooting in DX mode, 7fps in 1.3X crop mode • 51 point AF system, 15 sensors cross type • 2016 pixel RGB metering sensor • Spot white balance in live view mode • 1080 60i/30p video recording, built-in stereo mic, mic jack and audio monitoring jack • Pentaprism with 100% coverage and 0.94X magnification • 3.2”, 1.2m-dot LCD screen (640 x 480 X RGBW) • Front and rear IR receivers • Equivalent water and dust resistance to D800/D300S

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April 2013 Vol.2 No. 4

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Golf

The “Tiger” Strikes Back

www.nation.com.pk

The 37-year-old American returned to the top last week after an absence of two and a half years, replacing Rory McIlroy, who has struggled with his game this year following a change of clubs and ball in the close season.

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Ho-Sung Choi Wins Indonesia PGA Tournament It happened after the affair with many women revealed. Not only did he lose the throne of the best golfers since October 2010, Woods was also largely abandoned by the sponsors.

The win also adds a personal note: Woods has collected 77 trophies PGA tournament. Arnold Palmer Invitational Tournament was the 99th professional tournament for Woods in preparation for the Masters tournament this month.

repush.com

Through his eighth victory at Bay Hill, the 37-year-old Woods was able to match the achievements of Sam Snead in PGA (Professional Golf Association) Tour.

Woods has a record of win in 14 prestigious tours and is in the world ranking for 623 weeks.

Woods did have to undergo a difficult period over the past year.

The win also took Choi to the top of the OneAsia Order of Merit alongside Thailand’s Prayad Marksaeng.

www.pictu

iger Woods stayed on top of the world rankings on Monday following Rory McIlroy’s failure to win the Houston Open on Sunday.

The 37-year-old American returned to the top last week after an absence of two and a half years, replacing the 23-year-old Irishman, who has struggled with his game this year following a change of clubs and ball in the close season.

Woods will go into next week’s Masters Tournament at Augusta National with back-to-back wins boosting his confidence, while McIlroy will take part in the Texas Open in another bid to win for the first time this year.

Ho-Sung Choi closed with a 5-under 67 on Sunday to come from behind and win the Indonesia PGA Championship. The 25-year-old South Korean overhauled overnight leader Kaname Yokoo of Japan and held off the Philippines’ Juvic Pagunsan to win the OneAsia tournament on Sunday. Choi finished his first Japan Tour title at 19under-par 269 at Emeralda Golf Club.

He opened with an eagle at the first, but parred his next 10 holes. Choi posted back-to-back birdies at 12 and 13. He stumbled to a bogey at the 15th, but

birdied the final two holes to grab his first tour win.

Third-round leader Kaname Yokoo managed a 2-under 70 on Sunday to finish tied for second at minus-17. He was joined there

by Juvic Pagunsan (66) and Young- Han Song (68). Pagunsan birdied the final two holes in his bogey-free six-under 66 but fell two shots short of Choi on 17-under overall, tied for second with South Korea’s Song Younghan and Yokoo.

Hideto Tanihara (68) and Toshinori Muto (70) shared fifth at 16-under-par 272. The Japa-

nese pair finished in a tie for fifth on 16 under, while Australia’s Scott Strange, Liang Wen-chong of China, Thailand’s Thaworn Wiratchant and Yuta Ikeda of Japan were tied for seventh on 15 under.

Aaron Townsend was the next-best placed Australian on 14 under, while Matthew Griffin finished three shots further back.

The win also took Choi to the top of the OneAsia Order of Merit alongside Thailand’s Prayad Marksaeng.