The President Post Vol. II August 2013 by The President Post

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S P I R I T

O F

I N D O N E S I A

INTERNATIONAL

INFRASTRUCTURE

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Taiwan, Indonesia Confirm Designated Agencies for Morotai Project

IDR 20,000

August 2013 Vol. 2 No. 8 www.thepresidentpost.com

HEALTH

2014 Infrastructure Budget Reaches Rp 208t

Healthy Pets Could Lead To Healthier Pet Owners – Page C2

Finance Minister Chatib Basri

National Police Chief: Securing National Assets Vital for People’s Welfare TPP/Rians Rivco

JAKARTA (TPP) – Indonesia’s significant economic growth is to a large extent due to the nation’s stable and conducive situation. National Police chief (Kapolri) Gen. Timur Pradopo said that the police have an important role in maintaining security in a country in order to support the sustainability of community activities, industrial climate, the national economic system and political stability. watch the video at: www.thepresidenttv.com

“W

e maintain nationa l growth by securing vital objects, including industrial areas,” said Pradopo in a discussion on securing national vital objects and workforce stability at Kota Jababeka, Cikarang, Bekasi. The discussion was organized by The President Post and was attended by Minister of Industry MS Hidayat, West Java Governor Ahmad Heryawan, Director General of Industrial Relations and Social Security Affairs at the Manpower and Transmigration Ministry Irianto Simbolon. President Director of PT Jababeka Tbk SD Darmono moderated the discussion.

According to Pradopo, nowadays security threats are more complex and dynamic, such as mass demonstrations, roads blockings, labor sweeping, thuggery etc. He called on stakeholders to be involved in security problems comprehensively. Pradopo also said that any conflict involving masses (workers) should be resolved internally and not delayed. “Resolve internally first, not directly with demonstrations,” he urged. Pradopo also requested employers to work with the national police by providing information in advance on problems within companies. “If the company never informs us of anything, and then suddenly it is besieged by the masses, it’s hard for us to give protection. Thus since the beginning companies are supposed to

If the company never informs us of anything, and then suddenly it is besieged by the masses, it’s hard for us to give protection. Thus since the beginning companies are supposed to share with us their problems.” FROM LEFT TO RIGHT: West Java Governor Ahmad Heryawan, National Police chief (Kapolri) Gen. Timur Pradopo, Minister of Industry MS Hidayat, Director General of Industrial Relations and Social Security Affairs at the Manpower and Transmigration Ministry Irianto Simbolon, and President Director of PT Jababeka Tbk SD Darmono. share with us their problems,” he explained. On the same occasion, Minister of Industry MS Hidayat said the establishment of an industrial area as one of the national vital objects is due to the strate-

gic role of the industrial area as the place that holds thousands of workers in it. “The role of industrial area can be seen from the value of exports from an industrial area that reaches $52 billion/year (41% of

Celebrating 68 Years of Achievements by Indonesian Presidents

the total value of non-oil exports in 2012), the investment value of Rp 29.9 trillion for domestic and $7.06 billion for foreign investment per year (60% of total investment in 2012) and state revenues of $938 million (Land and

Gen. Timur Pradopo National Police chief (Kapolri)

Building Tax, VAT, Income Tax). These data show that the role of industrial areas is enormous in our national economy,” said Minister Hidayat. According to him, while the security precautions of Indonesia’s industrial areas are fairly

optimal, much more needs to be done. Hidayat explained that to increase the security of vital objects of the industrial sector, more efforts are required in strengthening laws and regulations, especially protection of employers’ and employees’ rights. Also, bipartite consultative fora need to be more effective between employers and labor unions at corporate levels to find solutions to employment problems proportionally and to reach agreements in a consensual way. “Securing an industrial area as a national vital object should be organized on the principle of internal security and meet quality standards and capabilities by taking into consideration input from relevant ministries,” he concluded. Meanwhile, Director General of Industrial Relations and Social Security Affairs at the Manpower and Transmigration Ministry Irianto Simbolon said that employers have to establish dialogues with workers and labor unions through a Bipartite Cooperation Forum. “Through the dialogue, companies can as early as possible get to know the things that make workers restless so that solutions can be found before it becomes disputes,” he said.

Tanjung Lesung to Have Four Hotels, 2,000 Vilas TPP/Rians Rivco watch the video at: www.thepresidenttv.com

Indonesia’s 68 years’ journey as an independent state cannot be separated from its leaders who have shown outstanding commitment to advancing their beloved country. The President of the Republic of Indonesia is the highest authority in Indonesia and also serves as head of state. Prior to the amendment of the 1945 Constitution, the president is elected by the People’s Consultative Assembly (MPR). After that, since 2004 the president is elected directly by the people organized by an Election Commission. Undoubtedly, Indonesia today is the result of decisions, policies, and accomplishments by the nation’s leaders since the first president, Soekarno, until the present one, Susilo Bambang Yudhoyono. The following are the achievements of Indonesian presidents that should be known by future generations of Indonesia.

PRESIDEN SOEKARNO Raised national pride to new levels Soekarno, in 1955, took the initiative to organize the Asian-African Conference held in Bandung, which produced the Dasa Sila Bandung. In addition, in cooperation with President Josip Broz Tito (Yugoslavia), Gamal Abdel Nasser (Egypt), Mohammad Ali Jinnah (Pakistan), U Nu, (Burma) and Jawaharlal Nehru (India), he established the Non-Aligned Movement (NAM). Many Asian and African countries gained in-

dependence thanks to this conference. Designed Jakarta as the “face” of Indonesia Soekarno showed Jakarta to the world as the face of Indonesia by holding several international events in the city. He also planned the city from the beginning to become the center of government.

SOEHARTO Advanced national development Known as the Father of National Development, Soeharto was concerned in political stability and security to enhance economic development. As a result, his era of leadership is known as the Golden Age of Indonesia marked by low prices of basic necessities. Self-sufficiency in rice Indonesia experienced food self-sufficiency in 1984. Production in that year reached 25.8 million tons while in 1969 the figures were only 12.2 million tons. Developing ASEAN Soeharto also succeeded in upholding the dignity of Indonesia in economic terms. In ASEAN, he is credited for taking part in developing this regional organization to become one of the most successful grouping.

BJ HABIBIE Post-crisis economic recovery In his short reign as president he managed to provide a firm foundation for Indonesia: the Anti-Monopoly Law or Fair Competition Law was born; he also changed the law on political parties but the most important one is the regional autonomy law. People free to aspire Habibie also gave freedom to the people to actualize their aspirations. The result: 48 political parties were born during his era.

ABDURRAHMAN WAHID Official recognition of the Chinese Gus Dur made the Chinese New Year (Lunar New Year) a public holiday. This action was followed by the lifting of the restriction on the use of Chinese characters. Cabinet Reformation Gus Dur dissolved the Ministry of Information, the main weapon in the Soeharto regime to control the media. He also dissolved the corrupt Ministry of Social Affairs.

MEGAWATI SOEKARNO PUTRI Brought Indonesia out of the 1998 crisis

Indonesia managed to pay off all its debts to the International Monetary Fund (IMF), in 2003, marking Indonesia’s departure from the crisis of 1998; it also became more independent in funding national economy. Post-crisis economy stabilization Mega stabilized macroeconomic fundamentals that ravaged the country since 1998.

SUSILO BAMBANG YUDHOYONO Combating corruption and social problems SBY made the eradication of Collusion, Corruption and Nepotism (KKN) as an important priority, besides terrorism. He also managed dealt with the perils of drugs, gambling and human trafficking. Reducing poverty and unemployment rates Poverty and unemployment rates were reduced although still vulnerable to economic shocks. Significant economic growth despite world crisis Indonesia’s economic growth of 6%, despite the global economic crisis, is considered as a remarkable achievement by many international parties. Many countries look to Indonesia on ways to deal with economic crises.

PT Banten West Java Tourism Development (BWJ), a subsidiary of PT Jababeka Tbk, has signed a joint venture with the Chinese company Hanking Industrial Group Co., Ltd. to develop 300 hectares of land in the Tanjung Lesung tourism area, Banten. In a press conference, President Director of PT Jababeka Tbk SD Darmono explained that the timing is very important because the development of Tanjung Lesung still faces obstacles such as the absence of a toll road that connects Serang with– Tanjung Lesung and the non-existence of an international airport. “To be an international destination, an international airport is a must,” he explained. He added that an international airport without a 2,000-room hotel is not feasible, and the toll way from Serang to Tanjung Lesung also needs a critical mass of 2,000 rooms. “With the investment of Hanking, we hope the government will soon build an airport and highways to Tanjung Lesung,” he said. BWJ and Hanking Industrial Group Co., Ltd. will use the $50 million to build a marina, a golf course, an exhibition center, four hotels each with 100 rooms, and approximately 2,000

Hanking Group from China signed an investment plan of $50 million to build a marina, golf course, and hotel. The MoU was signed by Mardjuki Setiawan, President Director of PT BWJ, a subsidiary of PT Jababeka Tbk, and Madam Yangmin Chairman of the Hanking Group. villas on 300 acres of the 1,500 acres of land owned by BWJ. The Hanking Industrial Group is a giant Chinese company that is engaged in mining and steel processing (steel production plants), malls and residential, etc. The company has so far invested approximately $400 million here. The development is targeted to take place in 2014 preceded by a feasibility study. The region is expected to be on a par with Bali as an international tourism area with the existence of Mount Krakatau, Ujung Kulon National Park, beaches and attractive cultural elements of South Banten. Darmono also said that the airport construction will begin this year. “It will run in August. Later the airport is for pioneer aircrafts that contain 20-seats,” said Darmono. Meanwhile Yang Min, chairwomen of the Hanking Indus-

trial Group, said the cooperation is expected to be beneficial to both parties and that Tanjung Lesung can be a favorite tourist destination in Asia. “Tourism is the most basic human need. Indonesia and China have the largest population, thus tourism is never far from these countries,” she said. Currently at Tanjung Lesung there are four starrated hotels, namely Kalicaa Villa Estate, Tanjung Lesung Resort Hotel, The Blue Fish, The Sailing Club, and Green Coral Exclusive Camping. This area is surrounded by natural beauty, among others Mount Anak Krakatau, Ujung Kulon National Park, underwater adventure and Banten’s cultural wealth like Bedouins and Debus.

August 2013 Vol. 2 No. 8

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Opinion THE INDONESIAN ECONOMY

duction of the widening social and wealth gap. Politically motivated warning signals are appearing more frequently. Large demonstrations are being organized, often coupled with violence. The media are continuously coming up with critical observations; there is loss of confidence and respect for the government, the parliament and political parties. They all serve as warning signals and expression of people’s discontent. Warning signals are also coming out from international sources, including the OECD, IMF, ADB (Asian Development), the World Bank and many others. Expressed in moderate terms, they mostly refer to basic economic policy matters. This year’s World Bank’s quarterly reports highlight the main problem of mounting pressures and the need for adjusting to such pressures in such areas as current account deficit, inflation; fiscal deficit, poverty rate and risks to Indonesia’s economic outlook.

Increasing Warning Signals, Mounting Pressures Ahead By Atmono Suryo

DEVELOPING COUNTRIES he world community recognizes that the global economy is in the process of extraordinary change. A new world economic landscape is gradually shaping up. Developing countries are moving up fast, taking up an increasing share in the global economy, in particular the countries of East Asia. THE IMF LIST OF EMERGING COUNTRIES Argentina

Mexico

Brazil

Pakistan

Bulgaria

Peru

Chile

Philippines

China

Poland

Estonia

Romania

Hungary

Russia

India

South Africa

Indonesia

Thailand

Latvia

Turkey

Lithuania

Ukraine

Malaysia

Venezuela

are members of ASEAN, showing ASEAN’s increased position. This group of 20 countries is referred to as the group of advanced economies among more than 170 developing countries.

GOOD ACHIEVEMENTS To be listed in the G20, the IMF list and in many others is a recognition of Indonesia’s good position in the global economy. (Domestic views, however, are different.) With GDP growth of 6-6.3%, Indonesia is one of the highest in the global economy together with China and India, with a GDP of $846 billion, reserves of $112 billion and increasing flow of FDI (foreign direct investment) amounting to $32 billion in 2012.

THE MOST PROBLEMATIC FACTORS FOR DOING BUSINESS IN INDONESIA IN 2010

23% 29% 8% 12% 2% 6% 2% 2% 2% 3% 3% 3% 0% 1% 0%

Inefficient government bureaucracy Corruption Inadequate supply of infrastructure Access to financing Inflation Government instability Policy instability Tax regulations Inadequately educated workforce Restrictive labor regulations Poor work ethic in national labor force Crime and theft Tax rates Poor public health Foreign currency regulations

INDONESIA ECONOMIC INDICATORS GDP growth 2012 Target of GDP Growth 2013 GDP 2011 GDP, PPP 2011 Reserves 2012

Seven of the 20 emerging countries are located in Asia, namely China, India, Indonesia, Malaysia, Pakistan, the Philippines and Thailand. Four

Indonesia

6.3% (2011: 6.4%) 6.1% - 6.7%

Developing Asia

It is clear that Indonesia’s economic development will increasingly depend on large-scale business activities by domestic and foreign business community. The following World Economic chart, however, indicates the many obstacles confronting the business world. As can be seen it includes inefficient bureaucracy, corruption, policy instability, and crime and theft. To remove these obstacles in the shortest possible time would perhaps be one of the big challenges facing the new government after the 2014 election.

Lower middle income

Source: World Economic Forum, Executive Opinion Survey

US$ 846.83 billion US$ 1,123.47 US$ 112.78 billion (2011: US$ 111.29 billion) 4.28% (2011: 5.38%)

Foreign debt to GDP ratio 2012

23.1% (2012: 25.0% US$ 32.5 billion (2012) up to 25%

Private consumption

59% of GDP (2012) 37.6%

Services

$223 billion

External debt Foreign reserves

$110.30 billion

Indonesia has gone through a long period of national resilience and stable growth. Such achievements could not have

INCREASING WARNING SIGNALS

been done overnight. The ground work was done and the basis was laid some decades ago. It is the result of the New Order’s forward-looking strategies and policies – carried out efficiently and timely – on the basis of good governance. It was strengthened afterwards with the good work done to overcome the 1997-98 Asian financial crisis.

•

WARNING OBSERVATIONS

Shares (% of weighted total)

The average inflation 2012

FDI

Percentage of respondents who ranked factor as most problematic

•

However, behind the achievements, Indonesia is still carrying a large number of economic and political shortcomings. Shortcomings are evident in the areas of natural and human resources and also in the politically sensitive areas of poverty and unemployment reduction and the re-

The following notes present some added views on the following issues: • In the external area: it would

•

be another shortcoming to make wrong decisions with its adverse effects, such as introducing obstructive hurdles to the inflow of foreign direct investment and technology; the inflow of professionals; or even skilled labor which will happen within the ASEAN scheme in 2 years time. Indonesia needs such inflows to gain strength; Protectionism: It would be too risky to let political pressure groups to introduce harmful protectionist policies which will invite countermeasures by the international community. The world is not keen to be burdened by protectionism and trade wars; Competitive position: It is high time for Indonesia to expedite measures to increase its low competitive position and to beef up the strength of business enterprises, particularly the SMEs which have to grow faster; Capacity building: Consumption trends have increased incredibly; there is now the need to strengthen the country’s “capacity building” potentials in the area of production; Natural resources: It has become increasingly urgent to find the right solutions in the area of natural resources, including energy and agriculture. Also mining, which is presently caught in a limbo. The right development of resources would be a boost to the country’s further growth in the years ahead.

Meanwhile, Indonesia is now facing mounting pressures demanding the effective handling of urgent problems and shortcomings. It is too risky to let them go unresolved and in a state of neglect. The writer is former ambassador to the EU.

Strengthening the National Shipping Industry It’s predicted that the national shipping companies can only grab 30 percent of the international market share and 80 percent of the domestic market share by 2020. As a result many foreign incomes fled overseas. By Hendra Manurung

he trade balance deficit which occurred last year is likely to hit the country again this year. Efficiency in managing the oil and gas sector, the indicator in creating “good corporate governance”, is needed following an increase in oil imports, the main contributor for this year’s trade deficit. The government must immediately seriously anticipate the factor that caused last year’s trade deficit because such condition could continue until the end

of 2013. The government should immediately respond to this condition and improve the export value and maintain the stability of the fiscal condition. An increase in subsidized fuel had caused oil and gas export at the end of last year to be lower compared to imports of oil and gas as surplus in the non-oil and gas also dropped. As a result, deficit in the trade balance continued to drag on. Former Finance Minister Agus DW Martowardojo said that there was a sharp decline in the non-oil and gas sector driven by lower export commodity prices but that balance of payment was still backed up by the

state reserves which remained at a safe level of $110 billion (Rp 1100 trillion). The implementation of the cabotage principle refers to Presidential Instruction No. 5/2005 on the empowerment of national shipping industry, which is hoped to boost the number of Indonesian ships. In reality, the domestic shipping industry still had to work hard to compete fiercely in terms of prices for ships produced at home compared to much cheaper imported ships. The domestic shipping industry had to offset the prices of imported ships despite being imposed with import duties when they import raw materials to produce a ship. Import duties are also imposed when the domestic shipping industry imported machineries and other materials. In the meantime, no import duties are imposed on imported ships

following the government’s policy to offer tax exemption on imported goods. Indonesia is an archipelagic country with waters covering 75 percent of its territories and given such condition the national shipping industry should have grown rapidly in Southeast Asia. The national shipping industry is hoped to grow rapidly with the issuance of Law No. 17/2008 on shipping industry with the cabotage principle. Economic wise, the cabotage principle is intended to improve the economies of the Indonesian people by giving national sea transportation companies wide opportunities so that the number of commercial ships in Indonesia can grow rapidly. Data from the Indonesia National Ship Owners Association (INSA) said that currently there are 11,300 units of commercial ships or up by around 80 percent compared to 6,014 units

in March 2005. The ships operate both in international and domestic markets. Unfortunately, the market share remains low.

formed and is accountable to all its members. This means that the funds raised from members will be paid back to them when incidents occur, similar to social gathering (arisan); (3) If the claims to be paid to P&I members who suffered losses were insufficient, all members will be asked to increase their contribution. But if it’s in a surplus condition, the fund will be returned to members in the form of lower call payment or returned; (4) P&I usually covers risks which involved third party losses. In the meantime, insurance only gives quantified protection such as the hull and machinery and the cargo carried by the ship. The national shipping industry has long knew about P&I. However, they had all joined P&I clubs overseas because there was none at home. Every year, around $130 million (Rp 1.3 trillion) is paid out by Indo-

It’s predicted that the national shipping companies can only grab 30 percent of the international market share and 80 percent of the domestic market share by 2020. As a result many foreign incomes fled overseas. Siswanto Rusdi, director of The National Maritime Institute (2012), attributed the sluggish national shipping industry growth to the government’s lack of attention to the need for protection and indemnity (P&I). P&I is different compared to insurance due to the following: (1) The money paid by clients to insurance companies is called premium, while P&I calls it call; (2) Insurance companies are set up and are accountable only to the shareholders, while P&I is

nesian shipping entrepreneurs to foreign-based P&Is. The capital outflow is a huge loss for Indonesia because we didn’t enjoy much benefit from it. Indonesia only had P&I in 2010 which was set up under the Indonesian Maritime Protection Association (Promindo). With the existence of P&I in Indonesia, it is expected that the money paid out to foreign-based P&I and clubs can be managed and bring benefits to local shipping entrepreneurs. There are currently 21 companies with 400 ships that have become members. In general, the call is made based on gross ton (GT) with business potential reaching 11 million GT. The writer is currently Full Time Lecturer of International Relations at Faculty of Business & International Relations at President University, City of Jababeka, Cikarang

ENGLISH EDITION

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CEO & EDITOR IN CHIEF: Rachmat Wirasena Suryo I CONTRIBUTORS: Atmono Suryo; Jeannifer Filly Sumayku; Andri Marsetianto; T Manivasugen; Paulus Khierawan; Hendra Manurung; Iqbal Alaik REPORTER & PHOTOGRAPHER: Rians Rivco; Heros Barasakti I CIRCULATION: Sheila Febria Putri DESIGN: Mohamad Akmal I MARKETING MANAGER: Achmad Iqbal I SALES MANAGER: Andrian Irawan EVENT MANAGER: Deavy Anggita I MEDIA PARTNER MANAGER: Daniel Trioska

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August 2013 Vol. 2 No. 8

Perspective

Looking for a Patriotic Law Enforcer The enforcement of laws and justice can serve as a glue to strengthen the sense of belonging, sense of having the same fate and sense of unity among the people. You could call it an iron law for the sake of unity of a community or a country. By Bambang Sulistomo

I As Governor Joko Widodo’s partner, A Hok has been firm (especially in cleaning street hawkers and residents who occupied the state’s land). His attitude is actually similar to the Betawi people’s real attitude: always frank in responding to issues.

n this era of modernization, one cannot ignore the needs to create balance between one’s rights and obligations. We also agree that such efforts to create the balance cannot be left to law enforcers alone although the state guarantees their authority to do so. But such efforts will become more significant if they were also committed by the society. The enforcement of laws and justice can serve as a glue to strengthen the sense of belonging, sense of having the same fate and sense of unity among the people. You could call it an iron law for the sake of unity of a community or a country. Meanwhile, the failure to enforce laws and to uphold justice had proven that they could result in the people’s confidence crisis towards the country. And this will eventually lead to such things as unrests, conflicts, political, social, economic and security turmoil, which would eventually affect the unity of the people and the country. That’s why authorities have

the main authority to enforce laws and to uphold justice. Jakarta Deputy Governor Basuki Tjahja Purnama, who is also popular by his nickname A Hok, is in the position to uphold the authority. As Governor Joko Widodo’s partner, A Hok has been firm (especially in cleaning street hawkers and residents who occupied the state’s land). His attitude is actually similar to the Betawi people’s real attitude: always frank in responding to issues. The opposition against the Jakarta administration, which was shown by some Jakarta people, especially those who represented several mass organizations, was also not something surprising. This is because some of the mass organizations have been acting as “protector” for the street hawkers. It’s still fresh on our minds that a bloody clash which involved two Betawi-based mass organizations that claimed lives, was related to a fight to gain control over certain street hawkers. We then wonder what the connection was between the mass organizations and the hawkers. Did the hawkers make illegal payment to the mass organiza-

tions in return for security? But the biggest question was, can’t legal enforcement and justice eradicate all those illegal practices? There is still one very basic question that needs to be answered: did the Jakarta administration not pay attention to its environment, the lives and welfare of the Betawi people? Or did the Jakarta administration condone the illegal security service practice in return for a political support? Having the experience to clear hawkers off the streets, the Jakarta administration and all of us should have already given some deep thoughts in the field of education, economy, culture that could lift the dignity of the Betawi people. Don’t let some Betawi people become the object of criticisms because of our inability to provide a solution to lift their dignity. That’s why we need to throw our full supports behind Joko Widodo and A Hok for their efforts to carry out their jobs, especially to A Hok for his bold and patriotic way to enforce laws and to uphold justice in accordance with his authority. It’s making us all proud.

Empowering Indonesia’s Economic Growth in Asia-Pacific By Hendra Manurung

aising fuel prices has been seen as a key test of President Yudhoyono’s commitment to Indonesia’s economic reform in the final 1-1/2 years of his term as prospects for rapid economic growth dims. Therefore, the strong pressure on the rupiah and concerns of the inflationary impact of costlier fuel prompted increases in two of the central bank’s key interest rates recently. Fuel subsidies last year cost Indonesia, a former OPEC member, some $20 billion and put pressure on the current account deficit. The finance ministry has said the price rises could save the state about $4 billion if they are implemented this month. The government expects inflation to top 7.2 percent after fuel prices rise from the current level of around 5.5 percent. Southeast Asia, East Asia, and the Pacific are home to twothirds of the world’s population and the world’s fastest growing

economies. The Asia-Pacific offers growing opportunities and challenges for Indonesia’s strategic interests. Though oil consumption in the Asia-Pacific region has increased more than 30 percent since 2000, Malaysia has been bolstering its role as an energy consumer and regional hub for energy trading. However, in cooperation with Singapore, with its strong financial and IT sectors, Malaysia is an important exporter of oil and gas to Japan, which is striving to become a global center of the energy industry. At the moment, Malaysia is a bridge between the markets of Europe and those of China and the rest of Asia. Even though until now, Malaysia has still developed as an oil and gas producer, but its national economic growth has pushed domestic demand to the point where supply capacity will probably decline in future, not just in Malaysia, but throughout Southeast Asian countries. Therefore, in fiscal 2011, Malaysia was the largest supplier of Liquefied Natural Gas (LNG) to Japan, but it

now has started to import LNG from elsewhere. Malaysia is currently building facilities on the Strait of Malacca for the re-gasification of imported LNG for distribution across the country. As the supply from Southeast Asia dries up, China and other Asian markets will look to the African continent, South American countries and the Middle East to cover the shortfall. From year 2020 to 2050, the Southeast Asian region will need an intermediary hub capable of refining and stockpiling oil and other energy sources. As Asian populations increase and developed countries mature, demand for pharmaceutical products will also grow. This will lead to increasing demand for petrochemicals, so any such hub should also include integrated processing plants to help cut costs and meet this need. This is the role that Malaysia is eager to play. Malaysia is striving to become a major international center of oil and gas production by 2017. To this end, the Malaysia Petroleum Resources Corporation (MPRC) was formed in

2011, as an agency under the department of Prime Minister Najib Razak. Malaysia has impressive plans to build 10 million cubic meters of storage by 2017 in order to meet the expected growth in demand from China and India. Central to this idea will be a project that is currently under way in Pengerang, Johor. On 8,100 hectares of land facing Singapore, Malaysia is constructing a huge industrial complex of oil storage and refining facilities and LNG installations. Public corporations have a major role to play in devising policies to lure overseas companies and investors to this new complex. The Malaysia Petroleum Resources Corporation (MPRC) has recruited talent with a good on-the-ground understanding of the industry. These include people from major international oil and gas corporations, like Royal Dutch Shell, ExxonMobil, and PETRONAS, Malaysia’s national oil and other gas companies. At the recommendation of the MPRC, the Malaysian government introduced a flat 3 per-

cent corporate tax rate for multinational companies who use Malaysia as their base for the trading of oil and other commodities. Also Malaysia is able to introduce a zero percent tax incentive for companies handling LNG. Global leaders like Royal Vopak, a Dutch petrochemicals logistics company, have already decided to build oil terminals in Pengerang, Johor. The shale gas revolution in the United States and elsewhere could well intensify competition among resource-rich nations. Malaysia has a flourishing manufacturing sector, and lower commodity prices will be a boon for its manufacturers. The development of new resources will also provide an opportunity for Malaysian energy companies to expand overseas. Currently, the MPRC is working closely with PETRONAS, which until now has mainly focused on upstream activities such as oil and gas drilling. PETRONAS plans to invest 60 billion ringgit (1.9 trillion yen, or $19 billion) in a huge petrochemicals complex in Pengerang. The

state-owned company is not only focusing on domestic oil and gas production, it is also actively involved in overseas resource development in places like Canada and Australia. Meanwhile, the MPRC is also focusing on educating and training the human resources needed for oil and gas development. The next 10 years will be a new and exciting time when it comes to resource exploitation, and not only because of the shale gas revolution. However, there is a shortage of talent in this area. The MPRC wants to entice foreign educational institutions to Malaysia to establish, for example, a Malaysian branch of the University of Tokyo. Due to the facts for Asian countries it is still quite expensive to study in the United States or Europe, Indonesia and Malaysia together can provide a topclass higher education in energy resources. Singapore has traditionally been the center of oil and gas trading in Asia. Malaysia is not trying to replace it. Both nations can complement each other and develop together as a center

for the oil and gas sector. Malaysia has things that Singapore lacks, such as resources and space. Singapore, on the other hand, has a good financial system, while the best multinational talent is also gathered there. In conclusion: Japan is a major investor in Indonesia and Malaysia, and a key trading partner. As such, developments in Japan are a major focus for Indonesia and Malaysia. If Japan grows, this will also lead to economic growth in Indonesia and Malaysia. Since the March 2011 disaster at the Fukushima No. 1 nuclear power plant, Japanese demand for LNG has increased significantly. Indonesia and Malaysia need to continue supply Japan with energy resources over the long-term. This is why Indonesia and Malaysia should improve its competitiveness quality in the oil and gas sector. The writer is currently Full Time Lecturer of International Relations at Faculty of Business & International Relations at President University, City of Jababeka, Cikarang

August 2013 Vol. 2 No. 8

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International

Taiwan, Indonesia Confirm Designated Agencies for Morotai Project Taiwan and Indonesia signed a memorandum of understanding in December last year covering the joint development of Morotai, the largest island of the resource-rich Maluku archipelago in eastern Indonesia.

aiwan and Indonesia have announced the respective agencies that will be assigned to a joint development project in Morotai, one of Indonesia’s northernmost islands. On the Steering Committee on the Morotai Development Project Indonesia–Taiwan meeting (July 24), both countries agreed the Taiwan’s International and Development Fund (Taiwan ICDF) will be Taiwan’s designated operating agency, while Indonesia’s will be the Jababeka compa-

ny. The meeting also discussed the concept of Morotai’s development, Taiwan’s contribution to the project, as well as the cooperation scheme. Taiwan ICDF Secretary-General Tao Wen-lung, as shown on Taiwan’s news channel, said that the government-funded Taiwan ICDF will send two project managers later this month to explore investment opportunities in Morotai and establish a channel of communication with relevant Indonesian agencies. That mission is part of Taiwan ICDF’s responsibilities to map

out Taiwan’s investment plan and identify potential opportunities for Taiwanese investors, he said. The development project will likely center around the fishing industry and eco-tourism, considering Morotai’s abundant coral reefs and other natural resources, Tao said, adding that the specifics still need to be worked out. Indonesia is expected to approve the application to establish a special economic zone in Morotai, which will provide a range of incentives to Taiwanese inves-

tors, including tax benefits, and will help Indonesia build up its infrastructure and the marine, agriculture, and fishery sectors on the island. Taiwan and Indonesia signed a memorandum of understanding in December last year covering the joint development of Morotai, the largest island of the resource-rich Maluku archipelago in eastern Indonesia. The island, located 2,600 kilometers from Taiwan, has a population of some 50,000 and an area of about 2,400 square kilometers.

Miss World 2013 to be Held in Indonesia Unlike in other Miss World events in other countries, in Indonesia participants will wear the unique Balinese cloth for pool sessions instead of bikinis. Indonesia will host the 63rd Miss World. This beauty event will be attended by participants from 125 countries from all over the world, and Indonesia will be represented by Vania Larissa as the winner of Miss Indonesia 2012. The finalists will visit Bali, Yogyakarta, a center of classical Javanese fine art and culture, and cosmopolitan Jakarta, Indonesia’s capital city, where the new Miss World will be crowned. The opening ceremony for Miss World 2013 will take place in Bali, on September 8. From then on, the candidates will compete in sports activities, talent, modeling skills, beach fashion (with sarongs instead of bikinis), and of course, Beauty With a Purpose, when they pres-

ent their amazing social projects. A whole month filled with excitement and beauty in one of the most exotic countries on the planet is just ahead. Miss World organizers are usually funded by the state budget, in the case of Indonesia it is the private independent provider, MNC Group. President Director of MNC Group Hary Tanoesoedibjo promised to engage local communities to participate introducing Balinese culture and traditions to the contestants and foreign tourists. For the final event, on September 28, to be watched live in over 150 nations by a potential audience of nearly 3 billion people, a few surprises are expected. Unlike in other Miss World events in other countries, in Indonesia participants will wear the unique Balinese cloth for pool sessions instead of bikinis.

Indonesia, Fiji Launch Seaweed Center to Strengthen Capacity Building Relations Indonesia and Fiji inaugurate the Seaweed Center in Mau Village, Suva, Fiji (July 29). It marks Indonesia’s role in Fuji’s capacity building in the sector of seaweed cultivation. This is also a project of Bainimarama’s government aimed at increasing the role of women all over Fiji. Prime Minister of Fiji Commodore Josaia Voreqe Bainimarama in his speech said that the construction project of the seaweed center strengthens Indone-

sia-Fiji bilateral relations. “Indonesia has shared its experience in giving added value to seaweed production through training the Fiji people.” Commodore Josaia Voreqe Bainimarama also expressed his appreciation of the presence of Foreign Affairs Ministry Director General of Information and Public Diplomacy (IDP) and hoped that various cooperation in capacity building will continue in the future.

In the meantime, IDP Director General, Ambassador AM Fachir, congratulated the Fiji people in increasing their capabilities and expertise. “We hope that the Seaweed Cultivation Center will facilitate the implementation of Indonesia’s cooperation with the Fiji people in increasing capabilities and expertise of the Fiji people,” Fachir expressed. The IDP Director General also said that Indonesia as part of the Pacific population is very

proud to strengthen partnership through increasing south-south technology cooperation. Fachir continued, Indonesia has created several technical cooperation for Fiji through bilateral as well as regional (MSG) contexts, among others, in the sectors of fishery, seaweed, agriculture, and disaster risk management, and also women empowerment. On the occasion, Ambassador Fachir also donated technical

training equipment for seaweed cultivation to the Fiji Government. “At present the Indonesian Government is processing a donation of 10 agricultural handtractors to the people of Fiji as Indonesia’s commitment to develop cooperation and friendship relations with Fiji.” The Seaweed Center is the result of a range of trainings in capacity building carried out by the Indonesian Government. This was coordinated between

the Directorate of Technical Cooperation- Foreign Affairs Ministry IDP Directorate General with the Main Station of the Fishery Cultivation Produce (KPP) and KPPP in the sector of seaweed cultivation. This cooperation culminated in the International Training on Small Medium Enterprise Sector of Seaweed Production for Fiji, September 17-26, 2012, and also the training of cultivation and development of seaweed, the

2nd phase, July 11 – August 11, 2013, in West Suva. The inauguration of the Seaweed Center was attended by around 300 guests, including the Minister of Women, Social Welfare and Eradication of Poverty, Minister of Youth and Sports, Secretary General of Fishery, Agriculture and Forestry, representatives of the Police, and staff of related ministries, training participants and the people of the Mau Village.

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August 2013 Vol. 2 No. 8

Law & Regulation

Electronic Media and Circular Resolution In Lieu of General Meeting of Shareholders Now that the law allows the RUPS to be held via electronic media, it makes it easier to gather legal evidence. Previously, pieces of evidence are only based on letters, confessions, witnesses’ accounts, suspicions and vows, but now e-mails and video recordings can also be used as evidence. By Paulus Khierawan

he general meeting of shareholders is the highest organ in a company where important decisions are made. Basically, general meetings of shareholders (RUPS) are held and attended physically by shareholders where the company is located or where the company’s main activities take place. For public listed companies, the general meeting of shareholders can be held at the bourse where the shares are listed. But in general, many shareholders are unable to convene in a general meeting of shareholders due to their tight schedules as some of them have more than one businesses.The general meeting of shareholders could not be held if less than half of the shareholders with voting rights are unable to attend. If more than half of shareholders showed up at the meeting, those who didn’t attend will lose

their right to exercise their vote. Law No.40/2007 on limited companies (UUPT) is the answer to such a problem. Companies are now allowed to use electronic media to hold a general meeting of shareholders or to adopt the circular resolution method. Article 77 of Law No. 40/2007 stated that the general meeting of shareholders can also be held in the form of teleconference, video conference or other electronic media that enable all shareholders to directly see, hear and be involved in the meeting. The outcome from the general meeting of shareholders has to be reported in minutes of meeting and signed by all meeting participants, both physically and electronically. Now that the law allows the RUPS to be held via electronic media, it makes it easier to gather legal evidence. Previously, pieces of evidence are only based on letters, confessions, witnesses’ accounts, suspicions and vows, but now emails and video recordings can also be used as evidence.

Shareholders can now also resort to the circular resolution method which means they didn’t have to make decisions in a general meeting of shareholders. Article 91 of UUPT stated that “shareholders can also make a binding decision outside of the RUPS mechanism on condition that all shareholders with voting rights gave a written approval. Article 91 of UUPT said that decisions which are made outside the RUPS mechanism is known as the circular resolution. Such decision-making scheme does not require a physical meeting. Decisions can be made by sending a written suggestion about what is to be decided to all shareholders and the suggestion was approved by all shareholders. The decision made through the circular resolution method is as legally binding as the decision made in a RUPS. Such development shows that a law needs to keep up with the development to tap the people’s needs. And most importantly is that the regulations can be applied in real.

Article 77 of Law No. 40/2007 stated that the general meeting of shareholders can also be held in the form of teleconference, video conference or other electronic media that enable all shareholders to directly see, hear and be involved in the meeting.

August 2013 Vol. 2 No. 8

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Property

Types of Land Ownership www.portalinvestasi.com

In Indonesia, matters related to land ownership status are stipulated under Land Law No. 5/1960. The law cited that there are several types of land ownership status: ownership right, right to use for commercial purpose, right to use the building. By Andri Marsetianto

he value of land is often made as a reference in a property sale-purchase transaction. We can basically find out about the value of land from the Sale Value of the Tax Object (NJOP) being charged on the property owner each year. NJOP often becomes the object of the property value when the real property value actually lies in the ownership status of the land. In Indonesia, matters related to land ownership status are stipulated under Land Law No. 5/1960. The law cited that there are several types of land ownership status: ownership right, right to use for commercial purpose, right to use the building. All rights over a plot of land are issued in the form of a certificate issued by the National Land Agency (BPN). BPN would give the property owner a copy of the certificate to avoid the risks such as going missing, got burnt or duplicated. Certificates commonly issued for the public are: Land Ownership Certificate (SHM) and Certificate to Rights to Use a Building (SHGB). The certificates conferring the right to use property for business (SHGU) issued to a legal entity established according to the Indonesian law

are usually given for the rights to use the state’s land for industrial plantation forest, plantation, fisheries or agriculture. Meanwhile, the rights to use are usually given to institutions to use state-owned land, land that can be managed and land with ownership right according to the law. SHM offers the strongest and most comprehensive ownership right over a plot of land and is attached to an Indonesian citizen and it has no expiry period. The ownership right can change hands through a sale-purchase mechanism and the histories of both buyer and seller are recorded in the SHM. The ownership right can also be used as collateral to apply for loans. The SHM can be revoked if the land ends up with the state following the revocation of the right, voluntarily handover by the owner, the land had been abandoned for a certain period of time and when the land disappeared as a result of natural disasters such as landslides, earthquakes and others. The property value of land with the SHM status is higher than the ones with the SHGB status which has an expiry date, making its value rise in line with the growing demand and bids for the land. SHGB is the right given to Indonesian citizens or legal entities established based on the Indone-

The property value of land with the SHM status is higher than the ones with the SHGB status which has an expiry date, making its value rise in line with the growing demand and bids for the land.

SHM offers the strongest and most comprehensive ownership right over a plot of land and is attached to an Indonesian citizen and it has no expiry period. The ownership right can change hands through a sale-purchase mechanism and the histories of both buyer and seller are recorded in the SHM.

sian law to construct buildings over a land owned by other people for a period of 30 years at the most. The period for HGB was extended with the implementation of Law No. 25/2007 on capital investment, Article 22 (1b), which read: “The right to use a building is given for 80 (eighty) years in which it can be given 50 years straight and that it can be

extended for another 30 (thirty) years. SHGB is commonly used by companies for sale-purchase purposes to consumers either in the form of land, house, shop house and other commercial buildings. If the land with the SHGB status is owned by an individual, there is a chance that the individual could upgrade the

status to SHM. SHGB can also be used as collateral made available to a third party and as paid up capital. The requirements needed to upgrade the SHGB status are similar with SHM. The difference is that SHGB can be revoked if the land is needed for development of a public facility. HGB itself is pure HGB after

it changed hands through a legal sale-purchase transaction from the previous owner. However, several HGB cases on rights to use or manage land had led to concerns about ownership uncertainty and investment uncertainty in the long term when it was time to return the land to the individual. Banks are usually careful in approving loan ap-

plication that used land as collateral. Therefore, as consumers it’s better to be critical on the type of certificate for the assets that you plan to buy because land with high value means that it doesn’t have the risk to face a lawsuit in the future and that the asset is also accepted by banks as the main collateral.

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August 2013 Vol. 2 No. 8

Transportation

Ngurah Rai’s New Terminal to Operate in September The apron will be able to accommodate five Boeing 737-type aircraft and private jet planes in large number.

he new terminal in Ngurah Rai International Airport Denpasar is ready for operation in this September. One of the objectives of the terminal’s operation is to welcome delegates of APEC Summit (KTT) in Bali, in October 2013. “In September, Ngurah Rai’s international terminal will become operational, but the domestic terminal will still occupy a temporary location. We are still going to renovate, and only about six to seven months later, the terminal can be used,” said President Director of Angkasa Pura (AP) I, Tommy Sutomo, in Jakarta. Tommy explained that his company continues to make preparations to welcome APEC Forum participants. The preparations include capacity expansion of apron to accommodate private jets. Currently, the construction process is still underway. “The construction is expected to increase the capacity by about 14 aircraft parking spots and the

Angkasa Pura (AP) I continues to make preparations to welcome APEC Forum participants. The preparations include capacity expansion of apron to accommodate private jets. Currently, the construction process is still underway.

target is that 50 percent of this will be operational in October,” he explained. In addition, around the airport are tourist accommodations such as resort and tourism parks. Besides, AP I for Ngurah Rai Airport had signed a contract of Rp 300 billion in commercial rents. He predicted that the contract value will increase to Rp 1.8 trillion in 2018. According to Corporate Secretary of AP I Farid Indra Nugraha,

physical development of the jet terminal is already underway. Meanwhile, the construction of taxiways and terminal building has entered the second phase. The apron, he added, will be able to accommodate five Boeing 737-type aircraft and private jet planes in large number. “We expect the construction of apron will be completed in October and the terminal in December. But for a while, before the terminal is completed, we will

First Rail Service Airport Finally Starts Operation Kuala Namu airport, Indonesia’s first airport linked to a rail service, finally opened on July 25. The train service provided by PT Railink (a joint venture between Angkasa Pura II and Kereta Api Indonesia) can accommodate about 20 percent of the estimated 21,000 daily passengers that travel to the airport. PT Railink operates two sets of Indonesian diesel rail train (KRDI), each consisting of four train carriages capable of carrying 304 passengers each way. General Manager of PT Railink Bodhaswara said that there are 30 train trips scheduled on a day, with a departure time gap of one hour. In 2014, the Kota Station will be able to serve city checkin. With a capacity of 304 passengers (each trip), and 30 trips, an estimated 9,000 passengers can be transported each day. The trains and equipment are made in South Korea, with a passenger capacity of 172 people; the first set is to arrive in

With a capacity of 304 passengers (each trip), and 30 trips, an estimated 9,000 passengers can be transported each day.

early August and the second in December this year. In the meantime, INKA, the Indonesian Rail construction company, supports the route with Indonesianmade carriages. Medan’s new Kuala Namu airport stretches over 1,365 hectares and is equipped with a 3,750 m runway, an apron able to accommodate 33 aircraft and a terminal offering a surface of 118,000 m2 for 10 million passengers. As Indonesia’s second largest airport (after Soekarno-Hatta International Airport), Kuala Namu airport is designed to ac-

commodate Airbus A380 doubledecker jumbo jets. Construction costs of the airport amounted to Rp 4 trillion ($397 million) and were covered by state airport operator Angkasa Pura II and the Ministry of Transportation. The airport has an initial capacity of handling 8.1 million passengers per year (which is more than double the capacity of the older Polonia airport). By 2030, however, it is expected to have a capacity of 50 million passengers per annum. Construction on the Kuala Namu International Airport has been delayed a number of times. Originally planned in 1991, it was postponed as a result of the Asian economic crisis. Nonetheless, today, since the airport is key in the country’s Accelerated Economic Plan (MP3EI) and an important hub in the ASEAN Open Sky 2015 accord, the Kuala Namu Airport has been the focus for the economic development for the whole of Sumatra. skyscrapercity.com

The trains and equipment are made in South Korea, with a passenger capacity of 172 people; the first set is to arrive in early August and the second in December this year. In the meantime, INKA, the Indonesian Rail construction company, supports the route with Indonesian-made carriages.

use a common terminal first,” he said. Transportation Minister EE Mangindaan previously stated that in order to avoid congestion at the time of the arrivals of state guests to Bali during the APEC Summit, a few supporting airports will be utilized. As many

as three airports located close to Bali have been prepared, namely the airports in Surabaya, Lombok and Makassar. “There will be planes diverted to stand by in Surabaya, Lombok, and Makassar to ease the burden of Ngurah Rai Airport Denpasar,” he said.

AP I, Singaporean Investor to Build Airport in Bintan AP I has welcomed an invitation from Singapore investors to build a new airport in Bintan, Riau Islands Province. “They want to build an airport, but they need a partner who will operate it, so they invite us. And, the signing of a Memorandum of Understanding (MoU) was already done in early July 2013,” said Corporate Secretary of AP I Farid Indra Nugraha. Farid said AP I welcomes the plan to build the airport in Bintan considering that there is no airport yet there. The presence of this airport is expected to improve the economy in Bintan. Although the MoU signing has been done, Farid said further, he was still reluctant to explain the details in terms of the share of AP I in the airport, including the estimated value of investment. “We just did the MoU on July, so we have yet to determine the portion or value of investment. Moreover, it all depends on the Singapore side. Currently, we are still concerned with the feasibility study (FS) and the master plan,” he said. In addition, Farid said, his company will also take over four airports that are currently managed by Airport Operator Units (UPBs). According to the plan, AP I will partner with private entities to manage the airport. However, he declined

They want to build an airport, but they need a partner who will operate it, so they invite us. And, the signing of a Memorandum of Understanding (MoU) was already done in early July 2013.” Farid Indra Nugraha Corporate Secretary of AP I

to name the airports. At present, AP I is still conducting a review of the four airports. He added that the criteria of airports whose management can be taken over by his company is their having passenger movements over one million people. “This is because an airport with passenger movements below one million is still not yet profitable; we have to look at the prospects as well. We are looking for partners who master the management of airports, such as from France,” said Farid.

August 2013 Vol. 2 No. 8

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ASEAN Review 46TH FOUNDING ANNIVERSARY OF ASEAN

“ASEAN People to Build a Future as a Solid Community” balita.ph

ASEAN nations are currently working for the fulfillment of the 2015 ASEAN Economic Community for regional economic integration. The Secretary-General stated that ASEAN Day is a reminder that this goal is not just a dream since everything is slowly coming into reality.

stablished on August 8, 1967 the ASEAN (Association of Southeast Asian Nations) celebrated its 46th year anniversary. Member nations are busy organizing events and celebrations to commemorate the momentous occasion. Initially established in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by its Founding Fathers: Indonesia, Malaysia, the Philippines, Singapore, and Thailand, the ASEAN now has a total of 10 member nations, including Brunei, Cambodia, Laos, Myanmar, and Vietnam. In a statement given by the Secretary-General of ASEAN, Le Luong Minh, he gave emphasis to the essence of the ASEAN, which is to allow its members to build a future as a solid community. “ASEAN has had its share of internal and external challenges. In spite of these, ASEAN has been able to demonstrate the strength and resilience that lie at our core. Our unshakeable faith and belief in ASEAN made us

Secretary Kerry noted that the United States is “deeply committed to supporting and partnering with ASEAN.” The United States was the first dialogue partner nation to establish a dedicated mission to ASEAN. “U.S. engagement with ASEAN has led to collaboration on everything from maritime security to investing in sustainable energy resources, to development in the Lower Mekong sub-region,” said Secretary Kerry in the statement.

more united in the face of these challenges,” he stated. ASEAN nations are currently working for the fulfillment of the 2015 ASEAN Economic Community for regional economic integration. The Secretary-General stated that ASEAN Day is a reminder that this goal is not just a dream since everything is slowly coming into reality. The ASEAN was created and established by the founding nations with the aim of promoting socio-political progress, economic stability and peace among nations, as well as cultural growth and opportunities that would ensure the future of its member nations. As of today, a total of 600 million people are under the ASEAN or almost 9% of the total population in the entire planet. The ASEAN Declaration spells out the bloc’s objectives: Economic growth, social progress, and cultural development; peace and stability, mutual assistance; training and research; greater utilization of agriculture and industries and trade expansion; and close and beneficial coop-

Sultan Hassanal Bolkiah of Brunei Darussalam, in his congratulatory message, said ASEAN strove to offer a sense of hope, confidence and purpose to more than 600 million people in the Southeast Asian region. He said ASEAN is making good progress in meeting its objectives. “And each year I am pleased to see its members intensifying efforts to make the region more politically cohesive, economically integrated and socially responsible,” he said. “On this year’s theme, ‘Our people, Our Future Together’, we emphasize the role of our people in ASEAN’s community building efforts and look beyond 2015. With the programs that have been organized for our youth, we are equipping them with the necessary attributes and values to face tomorrow’s challenges. They are after all the future leaders of ASEAN,” he said.

The ASEAN was created and established by the founding nations with the aim of promoting socio-political progress, economic stability and peace among nations, as well as cultural growth and opportunities that would ensure the future of its member nations.

eration with global and regional organizations. Its fundamental principles are mutual respect for independence, sovereignty, equality, territorial integrity, and national identity of nations; and non-interference in internal affairs of

one another. ASEAN regional cooperation is premised on “three pillars” – political-security integration, socio-cultural integration, and economic integration. An ASEAN Economic Community (AEC) is planned to be in place by 2015.

On that special day world leaders sent official congratulatory in marking the 46th anniversary of the founding of ASEAN. Secretary of State John Kerry on behalf of President Obama, mentioned that ASEAN plays a critical and growing role in Asia

through promoting regional integration and maintaining regional security. As the central regional organization in Asia, ASEAN is the keystone for Asia’s multilateral architecture, including the ASEAN Regional Forum and the East Asia Summit.

ASEAN ECONOMIC COOPERATION

Prospects and Challenges Graphic 1. GROWTH RATES IN THE ASEAN REGION GDP GROWTH (%)

By Atmono Suryo

COMPARISON OF REGIONAL INDICATORS ASEAN

China

India

Japan

Global Economy Development

Population

621.15 m

313.85 m

1,343.2 m

1,205 m

127.36 m

503.8 m

n the current global economic crisis, Asian countries have successfully showed their economic resilience as well as magnificent growth rate and economic reformation. This development is pioneered by two giant countries, China and India, followed by ASEAN countries (especially Indonesia). However, Asia today is facing a turmoil and economic challenges, yet as predicted it will be addressed in 2014. Based on world’s GDP, European Union, United States, China and Japan are the strongest economy power in the world.

GDP (PPP)

3.33 t

15.04 t

11.29 t

4.46 t

4.389 t

15.39 t

GDP per Capita

5,361

48,100

8,400

3,700

34,300

34,000

Investment % GDP

26.7%

12.4%

54.2%

32.8%

20.9%

18.8%

Exports

1.25 t

1.51 t

1.89 t

298.2 b

800.8 b

1.79 t

Imports

1.06 t

2.314 t

1.74 t

451 b

794.7 b

2.0 t

Unemployment

4.89%

17.6%

6.5%

9.8%

4.6%

9.5%

Poverty %

17.8%

15.1%

13.4%

25%

16%

I No.

Country

LAOS 6.0

8.4

9.3

MYANMAR

7.4

VIETNAM 5.5

7.0

5.6

8.9

PHILIPPINES

4.2

7.1

THAILAND

Graphic 2. ASEAN INVESTMENT MALAYSIA

4.4

8.1

in million USD

BRUNEI 6.2

3.2

0.4

Euroepan Union 27

$17,578 b

$15,094 b

China

$7,298 b

Japan

$5,869 b

ASEAN

$2,178 m

Russia

$1,850 m

Canada

$1,737 m

India

$1,676 m

Australia-New Zealand

$1,650 m

South Korea

$1,116 m

Source: Secr. ASEAN-IMF

According to the World Bank, East Asia with an economic growth of 7.5% is the most important economic driver in global economy. Meanwhile, the Asian Development Bank (ADB) stated that Asia-Pacific could grow by 6.7% in 2014. Another significant development also happened in other Asian countries, among others, Mongolia, Turkmenistan, Cambodia, Laos, and Timor Leste, followed by Myanmar. The developments are expected to revive Asia’s economy, which probably will fulfill the forecast of economic power shifting from West to East. Thus, “emerging countries”, in-

120,000

CAMBODIA

10.3

Total Trade 120,000

100,000

GDP

Country

Extra-ASEAN

80,000 2.7

SINGAPORE

4.5

60,000

40,000 Intra-ASEAN 6.1

14.5

20,000

INDONESIA

2012

Source: IMF 2012

2012-16

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011p

cluding ASEAN, could play an advanced role equal to developed countries.

ASEAN Economy Ten countries in ASEAN Economy are growing as bigger economic powers. Indonesia is the largest country in ASEAN with the growth rate considered highest in the world. (Graphic 1) According to IMF’s forecast on 2012-2016, the growth in Indonesia, Vietnam, Malaysia, Laos, Cambodia and Myanmar will reach a high figure. The average growth in ASEAN is 6%, China 8.8%, India 6.9%, meanwhile the world’s growth only reached 3.5% and developed countries (US, Eurozone, Japan) only 1.4%.

Dynamic Economy

Economic Community

ASEAN is facing a global economy that is more competitive in the future. One strategic way to resolve the issue is to increase the dynamic and ASEAN competitiveness through solid economic integration process. ASEAN needs to gather and enhance power to face the turmoil in the global economic situation, and to deliver ASEAN economy as an important part of the global economy. Also, to develop cooperation with other countries, especially in Latin America.

The ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015.

The ASEAN Community 2015 is supported by three pillars: 1. Political-Security Community 2. Economy Community 3. Socio-Cultural Community

AEC envisages the following key characteristics: a single market and production base a highly competitive economic region, a region of equitable economic development a region fully integrated into the global economy

The four characteristics are realistic objectives. It could be achieved by ASEAN collectively as well as independently. The road map to achieve the aims are made in detail and there are

Source: ASEAN FDI Database

monitoring and scoring. Perhaps some ASEAN countries, including Indonesia, need a longer adjustment period, for instance, in terms of development of competitiveness. The ASEAN economy is considered as an “emerging region” that is very attractive to investors and businessmen.

Investment In terms of investment, ASEAN is considered significant. The investment reached $120,000 million, which is predicted to enhance ASEAN investment in 2006-2013.

Conclusion • Integration process in order to establish ASEAN Econom-

ic Community is not easy. It is a complex process that needs time and adjustment for the implementation • In contrast to the European Union, ASEAN is taking prudent actions considered as a slow process though it brings important results for the community • It needs strong support from the Indonesian people, especially business parties, stakeholders and local communities to establish the ASEAN Economic Community • The Indonesian mindset needs to be directed to the importance of close and co-

operative cooperation in ASEAN in various fields: trade, investment, services, tourism, information technology, infrastructure, agriculture, industry, mining, technical cooperation, etc. • Keep in mind that the increases in strength of each ASEAN countries will help strengthen Indonesia’s position, and vice versa. • Indonesia needs to hoist the motto: focus enhancement on ASEAN Economic Cooperation is very crucial The writer is former ambassador to the EU

The President Post

BUSINESS Danamon Bank Net Profit Down in 1st Semester Publicly traded lender PT Bank Danamon Indonesia reported a slight 1 percent fall on-year in net profit to Rp1.985 trillion in the first half of the year. The country`s sixth largest bank recorded Rp2.003 trillion in net profit in the first six months of 2012. “The net profit declined, but it was natural because of inflation,” a bank director Vera Eve Lim said here on Thursday. Vera said the net profit was thanks mainly to a 6 percent increase to Rp6.7 trillion in net interest income in the first half of the year. She said the bank also recorded an increase of 9 percent to Rp2.4 trillion in feebased income. A strong growth of 16 percent to Rp228 billion was also recorded in income contribution from its insurance subsidiary Asuransi Adira and a 10 growth in income from Bankassurance business to Rp164 billion under the cooperation between the bank and insurance company Manulife Indonesia, Vera said. She said the bank recorded a 12 percent increase in giro deposits to Rp15.6 trillion and 10 percent rise in savings to Rp26 trillion.

State-owned Bank Tabungan Negara (BTN) saw its net profit slightly rise 2.2 percent to Rp673 billion in the first half of 2013 from the same period last year. The profit growth represented a drastic drop compared to the same period last year when it was 39.59 percent from a year earlier. BTN President Director Maryono told a press conference here on Tuesday night the drop was among others caused by rising non-performing loans (NPLs). “The net profit growth fell to 2.2 percent because of several things, first, the amount of our NPLs rose compared to 2012,” he said. The bank`s gross NPLs rose to 4.63 percent from 3.46 percent, and net NPLs increased to 3.65 percent from 2.42 percent, he said. “Given the rising NPLs, we have set aside about Rp150 billion as CKPN (reserve for impairment loss),” he said. The other cause of the low profit growth was the potential mark-to-market losses from securities in the form of state debt securities, he said. “We suffer potential losses from securities in the form of state debt securities due to a change in the market. Because of the current situation we suffer Rp95 billion in losses,” he said. “If the two factors did not occur, our net profit would grow 18 percent,” he said.

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XL will coordinate with the Communication and Information Ministry, and BRTI to obtain legal certainty regarding cooperation of telecommunications network usage by the telecommunications carrier.”

BNI Sees Five Million E-commerce Transactions State-owned lender BNI has set a target of five million transactions of e-commerce or worth Rp250 billion in nine months to come, the bank official has said. “Since BNI e-commerce launching was conducted in April 2013, its transaction has reached 3,000 times or worth Rp1 billion,” Assistant Vice President E-Banking Business Development BNI Rudi Indriarto said here on Sunday. According to him, the realization of e-commerce transaction and its value was still far below the target, so the bank should work hard to reach its target. “This is a new product, so publication and education regarding the e-commerce should continue to be conducted,” he noted.

BNI in 2016 will become a bank which supports e-commerce.

BNI actually had tried to publicize the e-commerce in 2009/2010 through the short message (sms), but it couldn`t be developed and BNI neither made it as the focus of its attention, he said, adding that e-commerce is a trading mechanism through internet. “If BNI so far conducted its transaction services through credit cards, the bank currently issued debit cards as a new al-

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BTN`s Profit up 2.2 Pct

XL, Kominfo Look into Legalities on Telcom Business

is trying to merge with PT Axis Telekom Indonesia after it officially sent the frequency unification proposal letter to the ministry last month. “Currently the merging process is still going on,” she said. Previously, the Corruption Court presided over by chief judge Antonius Widijantono sentenced Indar Atmanto to four years in jail and also fined him Rp200 million for misusing the 3G/HSDPA broadband network service owned by PT Indosat Tbk.

August 2013 Vol. 2 No. 8

She said the bank has risen in rank to the fifth largest in the country based on a survey on Bank Service Excellence Monitor (BSEM) 2013 by “Marketing Research Indonesia” (MRI).

BUSINESS BRIEFS

PT XL Axiata Tbk (XL) will coordinate with the Communication and Information Ministry (Kominfo) and the Indonesian Telecommunication Regulation Body (BRTI) on legal certainty of the telecommunications business in Indonesia, XL official said. The coordination is needed following the court`s verdict on former IM2 president director Indar Atmanto, who was sentenced to four years in jail and fined Rp200 million or a three months more in jail for failing to pay the fine, XL Vice President of Corporate Communication, Turina Farouk said here on Friday. The court`s verdict on IM2 and Indar Atmanto was given based on charges of misusing of 3G/High Speed Downlink Packet Access (HSDPA) owned by PT Indosat Tbk as the main company and IM2 as its subsidiary through a cooperation contract. “XL will coordinate with the Communication and Information Ministry, and BRTI to obtain legal certainty regarding cooperation of telecommunications network usage by the telecommunications carrier,” she said. Farouk said that XL felt concerned about the verdict because it relates to the telecommunications industry. XL currently

SECTION B

ternative,” Rudi pointed out. BNI continues developing online payment in effort to support the e-commerce, he cited, explaining that BNI has started such business development in 2013. In 2014, BNI will complete the online payment feature through various channels, and in 1215 will be the channel enhancement and promotion. Rudi added that BNI in 2016 will become a bank which supports e-commerce, while in 2017 BNI is expected to be a leader in the field of e-commerce business. Apart from that, Rudi said the ecommerce has a bright prospect in Indonesia, because internet users currently reaches around 65 million compared with that 40 million in 2011/2012.

Jasa Marga to Issue Rp2.1t Bonds in September State toll road operator PT Jasa Marga Tbk (JSMR) has set itself the target of issuing bonds worth Rp2.1 trillion in September. “In the first phase we will issue bonds worth Rp2.1 trillion. The bonds will be part of the overall bonds worth Rp6 trillion we will issue until 2015,” PT Jasa Marga corporate secretary David Wijayatno said at the State Enterprises Ministry here on Thursday. “We have appointed Mandiri Sekuritas as a bond issue underwriter. We are in the process of applying for an effective statement from the Financial Service Authorities (OJK),” he said. Jasa Marga would use Rp1.7 trillion of the proceeds from the issuance of the bonds worth Rp2.1 trillion to refinance its debts due in October 2013, he said. “The remaining Rp400 billion will be used to build a new toll road and complete the construction of a number of sections of Jasa Marga toll roads,” he said. David said he was optimistic the bonds would receive positive responses from the market, along with the company`s business prospects. Local rating agency Pemeringkat Efek Indonesia (Pefindo) has assigned its AA (double A) rating for the bonds. “The moment is right. The coupon of the bonds is also expected to reach a single digit so they will attract investors,” he said. Jasa Marga is planning to conduct a roadshow for the bonds in August, he said.

Pertamina LPG Sales Reach 2.67m Tons State oil and gas firm Pertamina said its liquefied petroleum gas (LPG) sales in the first half of this year reached 2.67 million tons, up by 6 percent from the same period last year. The sales consisted of 2.1 million tons of subsidized LPG in 3-kg cylinders and 0.57 million tons of nonsubsidized LPG, Pertamina vice president for LPG and gas products Gigih Wahyu Hari Irianto said here on Wednesday. The subsidized LPG and non-subsidized LPG respectively accounted for 79 per-

cent and 21 percent of the overall LPG sales, he said. He attributed the increase in LPG consumption to the fact that more and more people were no longer worried about using LPG and the development of small-scale industries. “The increase in energy consumption by households and micro industries may serve as one of the indicators of the improving living standard and purchasing power of the people,” he said. He predicted LPG consumption during the fasting month of Ramadhan and the Muslim holiday of Lebaran would in-

crease 8-10 percent to 18 thousand tons per day. “We will keep stocks enough for 17 days, meaning that LPG needs during Ramadhan and Lebaran can be covered,” he said. Yet the rising consumption of LPG in 12-kg cylinders would increase the company`s losses from LPG business, he added. Pertamina has projected its losses from LPG business to reach Rp6 trillion-Rp6.5 trillion this year compared to about Rp5 trillion a year earlier. In addition, the rising operation and distribution costs as a result of subsidized fuel price hike, labor wage

increase and inflation would also add to the losses, he said. “The losses will become larger if global LPG prices increase following the crisis in Egypt,” he said. Pertamina has proposed an increase in non-subsidized LPG price to curb the losses but the government has yet to approve the proposal. LPG price was last raised to Rp5,850 a kg in October 2009 from Rp5,750 a kg previously. Meanwhile, the LPG production cost currently reaches Rp10,064 a kg compared to Rp7,000 a kg in 2009, meaning that Pertamina suffers a loss of Rp5,152 a kg.

August 2013 Vol. 2 No. 8

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Business

State Firms Have Rp52t in Unspent Capex Expenditure The minister called on state-owned companies to not delay investment so that they could contribute maximally to the country`s economic growth.

bout 20 percent or Rp52 trillion of state-owned firms (BUMN)`s Rp260 trillion capital expenditure (capex) are still unspent, State Enterprises Minister Dahlan Iskan said. The minister therefore called on state-owned companies to not delay investment so that they

could contribute maximally to the country`s economic growth. “It should not happen that a state company does not carry out its capital expenditure,” Dahlan said at the BUMN ministry office here on Friday. The minister said that he was carrying out evaluation on all state firms to know the absorption of their capital expenditure budget. “At a time when the world economy is worsening, investment in the country should not weaken. When the economic growth is facing a downward trend, investment should not be delayed,” he stressed. He said that at least there were thousands of BUMN projects with a relatively big invest-

Dahlan Iskan ment volume. “We analyze one by one to see which firm has not yet carried it (capital expenditure) out so that a way out would be sought for, thus continuing their contribution to the national economic growth,” the minister said. He admitted that a number of projects had been delayed, for

example PT Angkasa Pura I, which was still delaying its project on the expansion of Ahmad Yani airport terminal in Semarang, Central Java. “It is delayed until next year because of location problem which should still be dealt with the Ministry of Defence,” the minister said. He said that talks on the land (owned by the Army) with the ministry of defense had been going on smoothly and it was expected the design of the terminal construction would have been finished at the end of 2013. Apart from that, flag carrier Garuda Indonesia had neither realized its investment yet worth Rp1.2 trillion for the purchase of airplanes of the ATR type be-

cause the company changed its capital expenditure plan. “There is no problem if Garuda does not realize its ATR purchase. Who knows it is going to buy CN-295 airplanes. This could boost the development of domestic economy,” Minister Dahlan said. The same thing also happened to state-owned inland waterway transportation service PT ASDP Indonesia Ferry, which had cancelled its plan to buy a number of long-distance ferries worth Rp111 billion. The ASDP canceled its plan because it was difficult for it to find the ships and indeed a ferry of such a type was not yet needed, the minister said.

GMF Receives EU Recognition PT Garuda Maintenance Facility (GMF) AeroAsia has received European Aviation Safety Agency (EASA) recognition. “We are grateful the training organization undertaken by GMF Learning Services has been recognized at the international level,” said GMF Learning Services and Corporate Culture Vice President Hermawan Syahrul here on Monday. Hermawan said that the recognition was received after the EASA formally submitted a writ-

ten statement to GMF AeroAsia signed by the Head of the Organization Department of EASA, Wilfred Schulze. The written information was received on July 13 and became the inaugural audit result of GMF AeroAsia by the EASA on 15-17 May 2013. With the recognition the training and quality of testing for participants of aircraft maintenance education in GMF has now been approved by the EASA. In the certification, EASA

states GMF as an aircraft maintenance training organization is in compliance with the requirements of Section A of Annex IV (Part 147) of Regulation No 2042/2003. “Therefore, the aircraft maintenance training organization run by GMF Learning Services has met all EASA requirements, including the items that must be met in the May 2013 audit,” he said. According to Hermawan, GMF Learning Services is projected to meet internal needs of reliable,

With the national and international recognition certificates, the aircraft maintenance training service has become one of the GMF AeroAsia`s top services in human resource competence development.

Bali Banks Have Lower NPLs The Bali-Nusa Tenggara regional office of Bank Indonesia said banks in Bali succeeded in cutting their non performing loans (NPL) to 0.54 percent in the second quarter of 2013 from 0.61 percent in the previous quarter. “Banks in Bali have been strict in observing prudential banking principles as reflected by the decline in NPL,” Dwi Pranoto, the head of the regional office of the central bank, said here on Wednesday.

The NPL is healthy, much better than average NPL of 1.95 percent recorded by banks in other regions in the country, he said. People’s Credit Banks (BPR) in Bali also made progress in cutting their NPL to a safer level at 2.8 percent from 2.9 percent in the same period. According to the country’s central bank, healthy banks may not have NPL more than five percent. Bank credits grew 60.35 percent on-year in the sec-

ond quarter of 2013 bringing outstanding credits of banks in the province to Rp17.13 trillion by the ends of June, 2013. Hotel and food and beverage sector accounted for 41.37 percent of the credit in the world`s famous tourist destination island. Investment credits grew faster than working capital credits and consumer credits in Bali. Decline in NPL also reflects conducive business in the tourism sector the largest source of income in Bali, Pranoto said.

Mestika Bank Upbeat On Credit Growth PT Bank Mestika Dharma Tbk.(BBMD) is optimistic its credit growth would meet the target despite recent central bank`s statement that economy would slow down to 5.8 to 6.2 percent. “Our credit distribution has reached Rp5.4 trillion until June,” the bank`s president director, Achmad S Kartasasmita, said after the company`s public listing at the Indonesia Stock Exchange here on Monday. He said the bank has set a target of distributing credits up

to Rp6.2 trillion this year which is up 21.5 percent from the previous year. In the first semester this year its corporate credits grew 13 percent compared to the same period last year. He admitted the bank would focus on distributing credits to micro, small and medium businesses (UKM). Around 30 percent of the bank`s credits would be channeled to UKM businesses while the rest to retail and consumer businesses and corporations, he added. The central bank has revised

the country`s economic growth target down from 5.9 to 6.3 percent by the end of the year to to 5.8 to 6.2 percent. The bank`s governor, Agus Martowardojo, said the country`s economic growth is expected to be lower than initially expected. Based on Bank Indonesia`s studies economy would grow only 5.8 to 6.2 percent this year,” he said. He added the trend could be seen from the the decline in investment contribution to only 6.3 to 6.7 percent from 9.8 percent last year.

skilled, and globally competent maintenance technicians. In addition, he said, it is also to meet external requirements, both national and international aviation industry that needs aircraft maintenance technician educational services. Hermawan declared with the national and international rec-

ognition certificates, the aircraft maintenance training service has become one of the GMF AeroAsia`s top services in human resource competence development. “The maintenance training organization has become an added value for GMF in the world`s aircraft maintenance market,” said Hermawan.

PLN Constructs Power Plant In Timika Next Week Work will start to build a steam powered electric plant in Timika , Mimika Timur, Papua Province, next week, the state power utility company (PLN) said. Semuel Farwas, the manager of the Timika unit of PT PLN, said here on Friday, a corner stone would be laid to mark the start of construction on Monday. Mimika District Head Abdul Muis and PLN officials would be present in the ceremony, Farwas said. Construction of the power plant, which will have a generating capacity of 28 megawatts, will be handled

by PT Rekadaya Elektrikal, a subsidiary of Pembangkit listrik Jawa-Bali (PJB). The construction will cost Rp1 trillion and will take 19 months to finish, Farwas said. The contract for the construction of the project was signed in Jakarta in March this year by PLN President Nur Pamudji and PT Rekadaya Elektrikal president Didi Hasan Putra. Farwas said most equipment needed for the project have been ready in the village of Ayuka, the project location. One unit of the two-unit power plant is expected to be in operation in mid 2014.

PTPN X to Expand to China State plantation company PT Perkebunan Nusantara (PTPN) X said it will expand export market for its tobacco products to China. China is a potential market for cheroots and the Chinese market is open to tobacco products, PTPN X corporate secretary Mochammad Cholidi said here on Thursday. Cholidi said so far the company has exported cheroots mainly to the United States and Europe through an auction center in Bremen, Germany. “This year we have tried to expand market to China but in a relatively small volume,” he said. Cheroot of the small sized type, called cigarillos, is growing in demand in China, with the change in lifestyle, he added. In the first

six months of the year tobacco exports of PTPN X, which is also a sugar producer, reached 634.30 tons valued at Rp97.29 billion. The exports exceeded the export target of 439.24 tons worth Rp70.65 billion set for the first six months of the year. “In the whole year, we hope to export 1,685 tons of tobacco worth Rp296.46 billion,” Cholidi said. The company grew tobacco in 1,296.12 hectares of its plantations land in the first half of the year or 17.39 percent wider than in the same period last year. In the whole year it plans to expand the tobacco cultivation to 1,325 hectares in the regencies of Jember, Bojonegoro in East Java, and Klaten in Central Java. Indonesia is one of the world`s largest exporters of tobacco with a market share of 34 percent, Cholidi said.

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August 2013 Vol. 2 No. 8

Investment

Investing in Shares Using the CANSLIM Method cdg.ac.at

CANSLIM is one of the methods used in the growth investing method discovered by William J. Oâ&#x20AC;&#x2122;Neil after he conducted studies on shares with sound historical performances. The studies concluded that shares with sound performances shared several things in common, which was abbreviated as CANSLIM.

here are two fundamental methods that could be used when investing in shares, namely value investing and growth investing. Value investing is finding shares with cheap valuation and investors would generally compare the normal price of the shares with the current market value. Meanwhile, investors would look for shares with high growth potential in the growth investing method. Speaking of growth investing, CANSLIM is one of the methods used in the growth investing method discovered by William J. Oâ&#x20AC;&#x2122;Neil after he conducted studies on shares with sound historical performances. The studies concluded that shares with sound performances shared several things in common, which was abbreviated as CANSLIM. The criteria of CANSLIM shares are as follow. C (Current Quarterly Earnings). The listed companies in which the shares were chosen should at least post 25% net profit growth compared to the same quarter in the previous year and they should also have a minimum of 25% sales growth. A (Annual Earning Increases). The listed companies should book at least 25% net profit per end of this year compared to the end of last year. Such criteria also take into account a min-

The performance of CANSLIM shares were able to post 21.13% gain from early in the year until the end of July 2013, way above the benchmark index performances such as IHSG and Kompas 100 which only gained 6.8% and 4.57% respectively. What made it interesting was that the CANSLIM shares comprised only five shares from four different sectors, namely property, animal feed industry, multi industry and financial institution, which was in contrast compared to the Kompas 100 index which consisted of shares from nine sectors.

SMMA (Sinar Mas Multiartha Tbk). How are the performances of those five shares if they were turned into portfolios with the same weight and compared with the performances of the composite index (IHSG) and Kompas 100 from 1 January until 31 July 2013?

By Wawan Hendrayana

Stock Index

Return YTD (Until 31 July 2013)

CANSLIM Portfolio

With the CANSLIM method, investors can focus on investing on shares in which the companies had sound fundamental and were able to analyze momentums in the stock markets and made some diversifications. imum of 17% return on equity (ROE). The ROE is a comparison between the net profit and total equity. N (New Products, New Management, New High). Listed companies that have high growth expectations usually have plans to launch new products or services. Not only that, news about management reshuffles which are considered positive for the companiesâ&#x20AC;&#x2122; financial performance would also likely prop up the share price. S (Supply and Demand). Outstanding shares would most likely see a rapid price change. L (Leaders or Laggards).

Leaders and Laggards are differentiated by their Price Relative Strength, a technique to compare the performances of such shares with other shares. Leaders are shares with minimum Price Relative Strength of 70. This means that based on performance the shares can outpace 70% of a group of shares. There are 30% highest-performing shares in an alias index. I (Institutional Sponsorship). A listed company is considered to be performing better if owned by at least two or three institutional investors. M (Market Direction). This criteria recommends investors

to carefully analyze the prospects of the stock market in the future because when the market is sluggish, the performances of such shares would likely spiral down. How can CANSLIM be applied on Kompas 100 index? By using listed companiesâ&#x20AC;&#x2122; historical fundamental data from December 2008 until December 2012. Out of the selection process above, five shares were selected, IMAS (Indomobil Sukses International Tbk), LPCK (Lippo Cikarang Tbk), MAIN (Malindo Feedmill Tbk), SSIA (Surya Semesta Internusa Tbk), and

21,4%

IHSG

6.8%

Kompas 100

4.57%

From the table above it was clear that the performance of CANSLIM shares were able to post 21.13% gain from early in the year until the end of July 2013, way above the benchmark index performances such as IHSG and Kompas 100 which only gained 6.8% and 4.57% respectively. What made it interesting was that the CANSLIM shares comprised only five shares from four different sectors, namely property, animal feed industry, multi industry and financial institution, which was in contrast compared to the Kompas 100 index which consisted of shares from nine sectors. With the CANSLIM method, investors can focus on investing on shares in which the companies had sound fundamental and were able to analyze momentums in the stock markets and made some diversifications. Happy investing!

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Network with international investors at Indonesia Investment Summit in Hong Kong

21-23 October 2013, Conrad Hong Kong

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August 2013 Vol. 2 No. 8

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Infrastructure

2014 Infrastructure Budget Reaches Rp 208t The government will improve next year’s budget allocations by increasing infrastructure spending and making a flat expenditure policy on goods and subsidy outlays, particularly fuel oil (BBM) spending.

he government has set a budget of infrastructure in the state budget (APBN) of 2014 amounting to Rp 208 trillion. Coordinating Minister for Economic Affairs Hatta Rajasa said the budget increased by Rp10 trillion from the figure announced earlier by the Ministry of Finance, which was Rp198 trillion. Hatta stated the infrastructure budget of Rp208 trillion is APBN only, excluding APBD, which is the regional budget of each and

every province. “It is higher than the one in 2013,” Hatta said after attending the President’s speech at the House of Representatives building, Senayan, Jakarta, Friday (16/08). The funds focus on the development of rural infrastructure, especially related to water distribution in rural communities. In addition, the budget will also be used to build roads and other means for transportation. “One of the causes that made commodity prices higher is the cost of flow of goods, which is re-

lated to transportation from central production to markets,” he said. Previously, Finance Minister Chatib Basri said that the government will improve next year’s budget allocations by increasing infrastructure spending and making a flat expenditure policy on goods and subsidy outlays, particularly fuel oil (BBM) spending. Chatib added that in the Draft State Budget (RAPBN) of 2014, there is fiscal space of Rp18.4 trillion. “This shows commitment. Thus, it can be seen that the government has allocated the bulk of the money derived from the increase in BBM prices for infrastructure, Rp13 trillion out of Rp18.4 trillion,” he said.

According to him, the allocated funds from the fiscal space will be used to increase the budget for recipients of Social Security Agency (BPJS) dues amounting to Rp3.8 trillion. The rest, he said, will be used to improve public transportation and energy conversion. “So, as the BBM prices have increased, renewable energy will be improved; there is investment allocation that way. So, public transportation, infrastructure, energy conversion, and social safety net [will be increased],” said the Minister of Finance.

Morotai Needs Rp 30 b to Build Infrastructure The local government of Morotai, North Maluku, needs at least Rp 30 billion for the construction of roads in five districts in the county. “At least Rp30 billion are needed for infrastructure development in the five districts of Morotai Island,” said Head of Public Works and the City Planning of Morotai Ade Suleman, in

Ternate, Friday (16/8). He said the development is an important part of structuring Morotai’s infrastructure. Construction of roads in five districts, including the districts of Sangowo of East Morotai, BereBere of North Morotai, Sopi Morotai Jaya, West Wayabula of South Morotai, and Daruba capital of South Morotai. beritadaerah.com

Construction of roads in Morotai Finance Minister Chatib Basri

Jakarta to Build Six Toll Road Segments After Monorail and MRT

Jokowi has finally given approval to the construction of the six toll road segments within the city on condition that the segments can be used by public transport vehicles and a special lane for TransJakarta buses is provided.

Governor of DKI Jakarta Joko Widodo has signalled his approval for the construction of two of the six toll road segments within the city next year. One condition is that the construction of the mass rapid transport system (MRT) and the monorail should already be underway. “If the MRT and the monorail have already begun on the field, then I would think about the two toll road segments. Chances are, we will give approval for the two

segments,” said Jokowi. Jokowi’s reason to prioritise the construction of the MRT and the monorail pertains to the matter of traffic control during construction. According to the plan, the physical construction will begin in October this year. If all these infrastructure developments start at the same time, Jokowi said further, it will be difficult to regulate traffic. Two road segments that will be constructed first is the east

- west line, namely SemananSunter and Sunter-Pulogebang. Jokowi’s reason to prioritise the two toll road segments is because they serve to provide intercity connection, which is important for the distribution of goods. Frans Sunito, Director of PT Jakarta Tollroad Development, which is the investor of the six intra-city toll road segments, said that the first phase construction of the six intra-city toll

road segments begins with the east-west line. Frans said that presently the two toll road segments are still in the design process so that there are no contractors yet for the work. Once the designs are completed, his company will then prepare documents for tender purposes. The plan to build the six toll road segments in the city had drawn protests from some quarters. Observers say that the addi-

tion of the six toll road segments does not resolve the traffic congestion problems in Jakarta. After a long tug-of-war, Jokowi has finally given approval to the construction of the six toll road segments within the city on condition that the segments can be used by public transport vehicles and a special lane for TransJakarta buses is provided. The six toll road segments will also be equipped with TransJakarta bus stops.

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August 2013 Vol. 2 No. 8

Event Reviews BREAKFAST DIALOGUE

“The Impact of Congestion due to the Construction of MRT” TPP/Rians Rivco

PT MRT Jakarta will endeavor to minimize the effect of congestion caused by the construction of MRT’s infrastructure.

resident Director of PT MRT Jakarta Dono Boestami said, “The development of MRT’s infrastructure would not cause severe congestion except in the flyover area such as Fatmawati.” He made the statement in Breakfasting Dialogue held at the Financial Club Jakarta (29/7). However, the construction of MRT, which will take 3-5 years, need full support from the people in Jakarta by, for instance, following traffic diversion and obeying traffic rules. On the same occasion, President Commissioner of PT MRT Jakarta Erry Riyana Hardjapamengkas guarantees that the congestion during the construction of TransJakarta (busway) lanes will not happen again. Erry added, “In the era of Jokowi-Ahok, it is the right time to speed up all programs simultaneously and precisely.” Besides the MRT project, Erry said, the DKI Jakarta government will build several projects simultaneously, among others the busway extension, monorail, etc. “So in the next 3-4 years, congestion will be severe, but later things will be much better,” said Erry. The government of DKI Jakarta says that the MRT project will start in October. According to Dono, the project will begin by moving the TransJakarta bus stops which will be affected by the physical construction of the MRT (underground projects). Dono said, “Indonesia actually already have an MRT, called the commuter line.” However, he added, the MRT will have a shorter distance of 5-10 minutes, even up to three minutes. He explained, “MRT will have a moving block system, meaning that while it moves, it will get the signal. Compared to the current system, the train will stop at a station until it gets the signal. Later it will be adjusted to receive the signal while moving. And the signals are wireless.”

Dono continued, there will be 16 sets of trains, each with six carriages. “It could be coupled to 20 sets,” he stated. On human resources, PT KAI will supply the machinists. They will do partnership training with MRT Singapore, India, or Hong Kong. “In the future we will establish our own school/training, especially if other cities in Indonesia also want to have an MRT,” said Dono. The MRT project is divided into two corridors, North-South corridor (Lebak Bulus-Kampung Bandan) along approximately ± 23.8 km and East-West Corridor along approximately ± 87 km. North-South corridor is divided into two phases; the first phase will connect Lebak Bulus to Bunderan HI along 15.7 km with 13 stations (seven elevated stations and six underground stations). Seven elevated stations are Lebak Bulus, Fatmawati, Cipete Raya, Haji Nawi, Blok M, and Sisingamangaraja, while the six underground (tunnel) stations along 5.9 km include Bunderan Senayan, Istora, Bendungan Hilir, Setiabudi, Dukuh Atas, and Bunderan HI. For the first phase, the project is worth Rp 15 trillion – a loan from the Japan International Cooperation Agency (JICA). 49% of the fund is borne by the central government and 51% by the DKI Jakarta government. The second phase from Bunderan HI-Kampung Bandan (Ancol) along 8,3 km consists of eight stations include Sarinah, Monas, Harmony, Sawah Besar, Mangga Besar, Glodok, Kota, and Kampung Bandan. The East-West corridor from Bekasi to Balaraja is still on a feasibility study process. It is planned to be built from Cikarang until Balaraja; this corridor is divided into two phases and targeted to be operational by 2027. This corridor will be more complicated because it involves three provinces, Jakarta, West Java and Banten.

In the era of JokowiAhok, it is the right time to speed up all programs simultaneously and precisely. Besides the MRT project, the DKI Jakarta government will build several projects simultaneously, among others the busway extension, monorail, etc.” Erry Riyana Hardjapamengkas President Commissioner of PT MRT Jakarta

Dono Bustami, President Director of PT MRT Jakarta (left), Erry Riyana Hardjapamekas, Commissioner of PT MRT Jakarta (middle), and Justin Doebele, Chief Editorial Advisor of Forbes Indonesia (right).

Guests and prospective investors who attended the event Breakfasting Dialogue on (29/7) at the Financial Club, Graha Niaga Jakarta.

Teddy from the Santa Fe Company asked how the MRT process will be applied and the impact of congestion that would be caused if the MRT project is included in the development stage.

The 8th Graduation Ceremony of President University TPP/Heros Barasakti

As of this year, President University has produced as many as 550 graduates from six faculties at President University

resident University held the 8th Graduation Ceremony on Saturday (27/7) at President University Ballroom, Jababeka, Cikarang. This year’s theme is “Stepping Progressively into the Era of Entrepreneurial Collaboration with the International Community”. As of this year, President University has produced as many as 550 graduates from six faculties at President University, namely: Faculty of Economics, Faculty of Engineering, Faculty of Communication and Multimedia, Faculty of Computing, Faculty of Business and International Relations. The event was led by Rector of President University Chandra Setiawan, Ph.D and attended by by no less than 2,000 guests. Also attending the event were prominent guests such as the Somalian Ambassador, the Counselor of Vietnamese Embassy in Indonesia, the Counselor of Mozambique Embassy in Indonesia as well as several President Univer-

Rector Chandra Setiawan Ph.D stated that President University is creating graduates who are confident with their academic ability. sity’s affiliated companies’ representatives from Indonesia and abroad. Rector Chandra Setiawan stated that, to prepare graduates to be ready to jump into the job market, President University’s curriculum requires the students to do field work (PKL) in

various companies so that they can experience the ambience of real work. He further said, “President University is creating graduates who are confident with their academic ability. Not only that, some of them are also becoming entrepreneurs,” he concluded.

President University graduates are ready to become reliable entrepreneurs.

August 2013 Vol. 2 No. 8

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Pictorial Events

Fast Breaking with US Ambassador TPP/Rians Rivco

Sultan Hotel Management Held Fast Breaking with Orphans Sultan Hotel Jakarta conducted a “Fast Breaking with Orphans”, a special event to celebrate the holy month of Ramadan 1434H. This event is a ceremonial tradition held by Sultan Hotel Jakarta every year and was attended by the entire management and staff of The Sultan Hotel & Residence Jakarta. The Fast Breaking was opened with a Marawis

performance, followed by a sermon (Kultum) by Ustad Ismeidaz Makfiansyah, who spoke about the importance of people to be grateful in life and to pray more intensely. The Sultan Hotel Jakarta also presented school supplies to 120 orphans, made by I Nyoman Sarya, the General Manager of Hotel Sultan Jakarta. TPP/Rians Rivco

Former U.S. Ambassador to Indonesia Scot Marciel and Deputy U.S. Ambassador Christian Bauer.

he U.S. Embassy held a Fast Breaking with Indonesian youth activists and leaders in Jakarta to promote the values of harmony between religions. In the event, former U.S. Ambassador Scot Marciel invited young activists from organizations, NGOs and institutions from different sectors and religions. The fast breaking reception was the last fast breaking moment for Scot Marciel, who has ended his tenure in Indonesia. Scot said that Ramadan is also celebrated in the United States. The month of Ramadan in the U.S. is an opportunity for families and friends to gather and celebrate the principle that unite all different circles of trust, which is a commitment to achieve peace, justice, equality, and mutual love among mankind.

Para tamu undangan yang hadir, terdiri dari: Aktivis Muda Indonesia, staf Kedutaan, dan awak media.

LEFT – RIGHT: Nugroho Sugiri Manager, Operation PT Indobuildco, Inayah Soetowo, Operation Manager Singgasana Hotel & Resort, I Nyoman Sarya, General Manager Sultan Hotel Jakarta and Director of Human Resources Sultan Hotel Jakarta.

The atmosphere of Fast Breaking at the Deputy U.S. Ambassador residence.

Amcham Business Gathering TPP/Rians Rivco

The American Chamber of Commerce in Indonesia (AmCham) held a business gathering (11/7) at the Polo Lounge, Menara Batavia, attended by all members. This business networking event was sponsored by the AGS Four Winds International, a specialist in quality international removal and relocations.

Keiko Melody (left), an AmCham member, got a lucky draw sponsored by AGS Four Winds.

Andri from Schenker Company got a door prize from AGS Four Winds.

Sony Jethani from Life Coach, Networking Trainer & Brand Consultant (left) and Deavy Anggita from Indonesian Industry Magazine (right)

David R Eyerly from SSEK Indonesian Legal Consltant and Paul Goddard from Amcham

Ustad Ismeidaz Makfiansyah delivers a sermon on the importance to be grateful in our lives.

Children from Orphan Foundation and Dhuafa Khazana Virtue Cireundeu.

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August 2013 Vol. 2 No. 8

Pictorial Events Freeport, Indosmelt and Indovasi to Build Smelter

KKAB CELEBRATES INDEPENDENCE DAY

“Kami Indonesia” TPP/Heros Barasakti

omunitas Kami Anak Bangsa (KKAB) celebrated Indonesia’s Independence Day, themed “Kami Indonesia” (We are Indonesia), Sunday (18/8). Held at the Fountain Atrium West Mall Grand Indonesia Shopping Town, this celebration was opened by Deputy Governor of DKI Jakarta Basuki Tjahaja Purnama (Ahok). In his speech, Ahok said that nationalism can be fertilized everywhere, even malls. He is proud that Komunitas Kami Anak Bangsa promotes tolerance and Bhinneka Tunggal Ika. He also called on the next generation to be creative in order to contribute more to the nation. Tony Wijaya, Chairman of KKAB, stated one of the movements of KKAB is “Celengan Bangsa”, which is the movement to save for future generations. KKAB wants to pass the idea that whatever amount savings will bring great impact to Indonesia in the future. The result of Celengan Bangsa will be donated to several programs, such as to make libraries, book donationz, disaster response donation, and other welfare programs. The celebration was also attended by Wanda Hamidah and enlivened by the performance of Fla, Maera, Nola B3 and Naura, JFlow, GSP Kinarya Dancers, and a choir by Gubug IPPA.

Deputy Governor of DKI Jakarta Basuki Tjahaja Purnama (Ahok) said, “All local people (outside Jakarta) with sincerity to develop community are able to lead Jakarta.”

Nola B3 and Naura presented a delightful mother-daughter performance.

PT Freeport Indonesia (PTFI) with PT Indosmelt and PT Indovasi Mineral Indonesia (Indovasi) signed a memorandum of understanding to support the companies’ plan to build a copper smelter. The MoU signing was attended by President Director of PT Freeport Rozik B Soetjipto, President Director PT Indosmelt Natsir Mansyur, Taufik Sastrawinata from Indovasi, and Director of Mineral and Coal, Ministry of Energy and Mineral Resources Dede Suhendra. In a press statement Rozik B. Soetjipto explains, “The signing of this MoU is a concrete step of Freeport’s support to the government’s policy for the downstream processing of mineral resourcesbased industries in Indonesia.” PTFI is willing to supply copper concentrate based on a competitive price or on international market prices. It will continue to help in providing information,

technical capabilities that suit the needs and feasibility of copper smelting and refining facilities in order to attract investors such as Indosmelt and Indovasi. PTFI has built the first and the only copper smelter located in Gresik, namely PT Smelting, a joint venture between PTFI and Mitsubishi. The smelter has supplied 40% of copper ore that has been processed into copper concentrate which has increased the value of the PT Smelting. The two companies are potential investors who will assess the economic feasibility of building a new smelter. PTFI expects support from relevant stakeholders to make the downstream program successful. PTFI also expressed its willingness to cooperate with third parties who have interest and ability to build smelting facility that has the value of economic feasibility. TPP/Heros Barasakti

JFlow, the Indonesian rapper that enlivened the event with his energetic performance.

Souvenirs hand over to Basuki TP (Ahok) by Tony Wijaya Chairman of KKAB (left), accompanied by Wanda Hamidah (middle).

IABC Members Gathering TPP/Rians Rivco

Tourism is the theme of the IABC Members’ Gathering held at the Gran Melia Hotel Jakarta. The event was attended by approximately 150 members of IABC and invited guests, among others, Australian Ambassador Greg Moriarty, Aditya Indradjaja from KADIN Indonesia and other important guests. This event was sponsored by Garuda Indonesia, PT Banten West Java Tourism Development (Tanjung Lesung), and the Gran Melia Hotel Jakarta.

The signing of the MoU by (left-right), Natsir Mansyur (Indosmelt), Rozik B. Soetjipto (Freeport Indonesia), and Taufik Sastrawinata (Indovasi).

Britcham Members’ Gathering British Chamber and Commerce in Indonesia (BritCham) held a gathering on Thursday (25/7) at the Polo Lounge, Menara Batavia, Jakarta. The gathering was attended by around 70 members. This routine event provides members to enhance networking while enjoying delicious meals provided by the Polo Lounge. The committee gave door prizes to a few lucky members handed over by the

BritCham’s chairman, Richard Michael. The British Chamber of Commerce in Indonesia (BritCham) is a British business presence that extends more than a hundred years. BritCham is working cooperatively with the British Embassy and the British Council, whose senior representatives sit on the Board of Management. BritCham is committed to develop services infra-

Australian Ambassador Greg Moriarty with IABC members.

Harmish Stephens, Richard Michael and Hans Muhammad.

Alicia K. Haesslein (kiri) dari Jababeka bersama Ken Bonne (kanan) member IABC yang memenangkan hadiah menginap satu malam di Tanjung Lesung, Banten.

LEFT - RIGHT: Sugito Sharif Director of PT Darma Heart Asita, Aditya Indradjaja from KADIN Indonesia, and Ken Bonne IABC members.

Hera Hidajat (second from right) with the team of PT Banten West Java Tourism Development attending IABC Members Gathering at the Gran Melia Hotel, Jakarta.

Rowan Dixon, Wietske B and Andrew Thurley.

structure that supports all stages of business development right from their inception in Indonesia. This covers politics, current affairs, security, health, inside-track analysis from our business sector groups, advocacy, personal and social development. In addition, the Chamber provides tremendous media opportunities for promoting and advertising to a dynamic business community.

watch the video at: www.thepresidenttv.com

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LIVING

SECTION C August 2013 Vol 2. No. 8 www.thepresidentpost.com

The Spa as a Spiritual Place letsgomaldives.com

Spa fans want more than sloughing off dead skin or soothing aching muscles from those pampering places of eucalyptus-scented bliss. And businesses are transforming into mind, body and soul temples of wellness to meet the demands of people increasingly eschewing traditional houses of worship and pursuing alternative paths to spiritual connection.

“S

pas can be inspirational places where I’ve seen many people have transformational experiences. With people not going as much to church, spas are a natural place to have some of these experiences,” says Susie Ellis, who has worked 40 years in the spa industry and is president of SpaFinder Wellness, a marketing company. Since ancient times, rituals such as fasting and cleansing have been used to shape the body “so as to attune it with the divine and experience a spiritual connection,” says Mayra Rivera Rivera, an assistant theology professor at Harvard Divinity School. “An increased emphasis on the body as a way to enrich the self is part of a broader cultural trend in our times. Caring for and especially improving the self are seen as salvific.” Religion’s complex history includes discipline and even denial of the body, so Rivera says what’s new in the spiritual spa trend “is the element of pampering.” Nancy Furst is a spiritual counselor and intuitive at the tony Ojai Valley Inn & Spa. “I’m there to listen and reflect your spiritual essence and wisdom and be a conduit for spirit

Sixty-one percent of spas provide treatments or relaxation areas dedicated to the spirit of mindfulness.”

or God,” she says, adding that for the many clients who have had negative experiences with organized religion, the word “God” can be an unpleasant trigger. “You can call it God, spirit, universe, Buddha, Allah. The words really don’t matter,” Furst says. “My work is about awareness of a higher consciousness, a higher power of creation.” “Anytime someone can get to that place inside where their true person can shine, that creates a spiritual experience,” says Michael Tompkins, chief executive of the Miraval resort in Tucson. Spas such as exhale Mind Body Spa in Hollywood and Santa Monica and the Chopra Center Spa in Carlsbad address spiritual enhancement and imbalances, with treatments such as acupuncture. “One of the therapies we offer at exhale is vibrational healing,” says Robert MacDonald, exhale’s director of healing. “We use tuning forks to shift the energy of the body, mind and spirit to profound effect. Working with acupuncture points, meridians and chakras, we are able to create deep relaxation and healing.” Michael Murphy and Dick Price co-founded the New Age pioneering Esalen Institute in Big Sur in 1962, with the mission to realize “human potential through experience, education

Spa Finder’s Ellis. Among those she cites in her 2013 spa trend report: • Mindful massage, including practices such as chi nei tsang, an ancient Taoist therapy that focuses on deep abdominal massage to help release the constricted flow of energy said to be caused by negative emotions. • Earthing, movement to promote direct contact with the Earth. Ellis says that could include a spa tent outdoors. Think less piped-in nature sounds, more real nature. • Ayurveda, a holistic system of medicine with origins in India. It is said to promote balance in body, mind and spirit.

and research.” That includes “healing arts” such as massage. “When we started out, our inspiration was to open up the undiscovered country of the spirit to this historic breakout of consciousness we saw over the horizon,” says Murphy. “We preach that the core of human nature, whereas it is capable of evil, is tilted toward the good. But not necessarily the Virgin Mary, Jesus on the cross or any religion in particular.... There is some-

thing deep down inside of us that is universal. It’s about getting beyond the things that divide us.” Religion is changing in the U.S. Forty-six million Americans, a third of adults younger than 30, say they have no religious affiliation — an increase from 15.3% of Americans to 19.5% in five years, according to the Pew Forum on Religious and Public Life. A third of these unaffiliated classify themselves as

“spiritual” but not “religious.” If you’ve been on a dating site, it’s a familiar phrase: 16.2% of eHarmony and 20% of Match.com members identify as SBNR. But don’t get the wrong idea about whom you’re chatting up. “Many in this group believe in God,” says Greg Smith, a Pew senior researcher. And three-quarters of Americans say prayer is an important daily part of life, the same as 25 years ago. The International Spa Assn.

defines spas as places to encourage the renewal of mind, body and spirit, perhaps not so different in ideal from the medicinal hot springs that have long attracted people. “Sixty-one percent of spas provide treatments or relaxation areas dedicated to the spirit of mindfulness,” says Lynne McNees, the association’s president, citing its 2012 industry study. Spas connect the word “spiritual” to an array of services, says

Our 21st century neighborhoods are part of the reason people question organized religion, says Robert Fuller, author of the book “Spiritual, but not Religious: Understanding Unchurched America.” “A person grows up today with a Hindu neighbor, a Buddhist neighbor, a Muslim neighbor, a Jewish neighbor, and you ask yourself, well, does that mean they’re completely wrong? Are they going to hell?” he says. “You begin to have less confidence that any religion has a monopoly on truth.” health@latimes.com

huffingtonpost.com

When the Grandchildren Grow Older, and Closer Growing up, Melanie Cortese always felt close to her maternal grandmother, who lived eight blocks away in South Plainfield, N.J. What really cemented their relationship, though, was adulthood. Once she’d graduated from college, landed a job and married her boyfriend, Ms. Cortese found herself turning to her grandmother for counsel on everything from dealing with in-laws and buying a house to throwing dinner together when she came home from work. “She gave me the feeling that whatever I did was O.K.: ‘You’ll get through it. Not everything has to be perfect,’ ” said Ms. Cortese, now 38. “She had the wisdom just from having lived so long. It was always comforting.” Her grandmother, Ann Ciampa, occasionally needs her help, too. Though still healthy and independent at 90, Mrs. Ciampa asks her granddaughter to buy her health food supplies online. She stayed with Ms. Cortese, who now lives in nearby Linden, when hurricanes caused extended power failures in the area, and she relied on her granddaughter for a ride home after cataract surgery. (She gives “gas money,” too, which Ms. Cortese accepts with a certain amount of private eye-rolling.) The cycle continues. Ms. Cortese hosted her grandmother’s 90th birthday celebration last month. And now that she has two children, she still seeks Mrs. Ciampa’s advice. “Raising kids, when you never know what you’re doing, it’s nice to sit back and hear her say: ‘It’s fine. Don’t worry so much,’ ” she told me. Much of the research on grandparents and grandchildren

Much of the research on grandparents and grandchildren has focused on young children and on the safety-net function that grandparents can provide in troubled families. But lengthening lifespans mean that more people will have adult relationships with their grandparents, too, sometimes for many years.

has focused on young children and on the safety-net function that grandparents can provide in troubled families. But lengthening lifespans mean that more people will have adult relationships with their grandparents, too, sometimes for many years. “We know relatively little about what grandparents and grandchildren do for each other on a daily basis during the grandchildren’s adulthood,” said Sara Moorman, a Boston College sociologist who set out to learn more. She presented the results of her research at the American Sociological Association’s annual meeting in New York this week. Using the Longitudinal Study of Generations, which surveys families in Southern California about every three years, Dr. Moorman and her co-investigator, Jeffrey Stokes, looked at data

from 1985 through 2004. Their sample included 376 grandparents and 340 grandchildren (selected randomly if a grandparent had more than one grandchild) who were over the age of 16. In 1994, halfway through the period in question, the grandparents’ mean age was 77; the grandchildren’s was 31. These relationships had impact, the results showed. When the pairs described themselves as fairly close emotionally (“affectual solidarity,” the sociologists called it), both generations showed fewer symptoms of depression on a standard psychological scale than those with more detached relationships. Those with close relationships were less likely to report feeling lonely or sad, and were not as prone to symptoms like insomnia, lack of energy or sleeplessness. More practical assistance — for example, “helping each other with chores, with transportation, with advice, with money,” Dr. Moorman said — had no significant connection to grandchildren’s depression scores, but it did affect the grandparents’ scores. They reported fewer depressive symptoms if they provided help (“functional solidarity”) or if the assistance was reciprocal. If they were only the recipients of aid, though, the grandparents’ depression scores were higher. “Older adults want to continue to be independent and productive,” Dr. Moorman said. “When they can’t give back, that’s depressing.” It’s worth noting that, over all, these grandparents and grandchildren — some of whom may have moved away from each oth-

er over the years of the study — did not describe particularly high levels of involvement. Based on six questions and a scale in which 1 meant “not at all” close and 6 meant “extremely” close, the grandparents rated their emotional closeness at 3.96 on average; the grandchildren rated their relationships at 3.54. “Pretty centrist responses,” Dr. Moorman said. Over the full study period, the grandparents estimated that they gave practical support to adult grandchildren about 14 percent of the time, received it about 3.4 percent of the time, and both gave and received it about 8 percent of the time. The grandchildren saw the relationship differently. “Grandparents say they’re giving more,” Dr. Moorman said. “The grandkids perceive more of an exchange.” Most of the time, though, both generations said they neither received nor provided practical support. Still, the connections between these relationships and depression scores were statistically significant. “A close relationship that induces exchange is good for both parties,” Dr. Moorman said. “Grandchildren and grandparents are a resource for each other, or at least they can be.” She knows whereof she speaks. “My grandma and I were really close,” she said. They lived in State College, Pa., where as a teenager, Dr. Moorman worked in the public library. Her grandmother, Mary Moorman, whose house was right next door, often made her lunch. And with her brand-new driver’s license, Dr. Moorman drove her to hairdressers’ appointments and restaurants, thrilled to be trusted. NYTimes

Creative parents know that adding flavor and making veggies a crunchy, fun treat can result in pleas for “more veggies please!”

Keys to Getting Kids To Eat More Veggies Incorporating veggies into your family’s diet this summer can be easier than you ever thought. How? Creative parents know that adding flavor and making veggies a crunchy, fun treat can result in pleas for “more veggies please!” Keep your kids busy on warm summer days with activities like picking vegetables out of the garden or creating a platter of your family’s favorite veggies for dipping in fun-flavored dips. Here are some tips to making certain those veggies will be eaten: • Nearly 80 percent of parents say veggie dip helps their kids eat more vegetables, and that having dip handy in the fridge helps everyone in the family eat more vegetables, according to a recent study by the T. Marzetti Company. Marzetti Veggie Dips make veggies taste deli-

cious with multiple flavors including light and fat-free varieties. • Mix veggies into your family’s favorite recipes for additional flavoring. For example, add zucchini to breads or blend it up into spaghetti sauce. Mix some corn kernels into salsa or homemade soups. Your entire family may be surprised at how delicious their favorite recipes end up tasting. For more recipe ideas, visit http:// www.marzettikitchens.com. • Add some vegetable creativity to pasta salads this summer. Add Marzetti Ranch Veggie Dip to a chicken pasta salad mixed with apples, chopped celery, scallions, pecans and dried cranberries for an unforgettable taste. • Switch up your spreads. People often top their sandwiches with mustard and mayonnaise. Add some zing to a turkey wrap with Marzetti Southwest Ranch Dip or try Dill Veggie Dip as a spread on a wheat roll with chicken and

arugula. • Who says you can’t play with your food? Build an edible veggie creation with your kids. Lay out an assortment of raw veggies and fruits and let imagination run wild with faces, figures, places and more. When your child’s creation is finished, take a photo for posterity (share it socially), and then enjoy eating with delicious dips. The summer months are when fresh vegetables taste best, so be sure to take advantage of the selection available from your garden, farmers markets and in the produce section at your grocery store. Consider introducing the family to a new vegetable each week or laying out a “dip bar,” exploring new tastes in the process. Soon you’ll have all members of your family asking for more vegetables. NYTimes

August 2013 Vol. 2 No. 8

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Health Healthy Pets Could Lead To Healthier Pet Owners The causes of obesity are the same in both pets and humans: not enough exercise and too much unhealthy food.

he veterinarian examined Bella, a spotted cocker spaniel, and quickly concluded she was obese and needed to lose weight. Working with a trainer, Maria Gastelum put her pooch on a nutrition and fitness plan. The regimen produced another benefit: Gastelum started to eat better and exercise more. “If I didn’t have her, I wouldn’t own a pair of tennis shoes,” said the Ontario resident. “It’s really unbelievable how she’s motivated me.” Los Angeles County public health officials hope that millions of pets living in the region can provide the same sort of inspiration and results for their owners. The idea is simple: If people won’t exercise, eat better and stop smoking for themselves, maybe they will for their pets. “You look at pets, and they look like their owners,” said Karen Ehnert, acting director of vet-

erinary public health for the L.A. County Department of Public Health. “We envision that by improving their pet’s health, we can improve the family’s health as well.” A year-old coalition of veterinarians, doctors, health educators, animal trainers and others called Healthy Pets, Healthy Families is trying to figure out how best to accomplish that. The group has conducted surveys of vets and pet owners and identified the areas where human and animal health overlap. Now, members are designing health education campaigns and finalizing goals for the year 2020, including reducing the number of pet owners who smoke and increasing the proportion of dog owners who go on daily walks. They also want to promote smoke-free parks. Ehnert, who is heading the coalition, wants owners to think more about what both they and their pets eat and to view their dogs as exercise buddies. She is

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encouraging neighborhood dogwalking clubs, which she said have the added benefit of reducing isolation. Nationwide, about 53% of dogs and 58% of cats are overweight or obese, according to the Assn. for Pet Obesity Prevention. They are at higher risk for diabetes, arthritis, hypertension and respiratory conditions. Many of the owners who have overweight dogs are overweight themselves, according to a 2010 academic study. Veterinarians are often reluctant to talk about obesity with the owners, who may treat their pets like children and overindulge them, said Peter Weinstein, the executive director of the Southern California Veterinary Medical Assn. and a member of the coalition. “A discussion with a pet owner about their pet’s weight is a very touchy subject, especially when an owner also has a weight problem,” he said. The causes of obesity are the same in both pets and humans: not enough exercise and too much unhealthy food, experts say. Just as humans snack on potato chips, animals snack on treats and table scraps — and

Understanding Eczema adamhymans.com

Summer is both a blessing and curse for millions of people afflicted with a common chronic skin condition called eczema. The dry, red and usually intolerably itchy patches often recede when the air is warm and damp and skin is exposed more often to sunlight. Yet, for many of the 15 million Americans with eczema, shedding the clothes may be embarrassing and, in the case of children, may result in teasing and exclusion. Even for those who are comfortable in a bathing suit, swimming in a pool can be problematic if sensitivity to chlorine worsens the condition. In industrialized countries, eczema has become two or three times more common in recent decades. Only part of this rise can be attributed to better diagnosis. Now between 15 and 30 percent of children and 2 percent to 10 percent of adults have eczema, which nearly always begins in the first five years of life. Fortunately, in more than twothirds of children with eczema, the condition resolves on its own before adolescence. The medical name for eczema is atopic dermatitis, which reflects the immunological nature of the condition. It is more common among children living in cities than those in rural areas. According to the so-called hygiene hypothesis, exposure to infectious agents early in life offers protection against allergic diseases. The more hygienic a child’s environment, the greater the risk. Eczema is not contagious, but more than one member of a family may be afflicted. The condition seems to have a genetic component. In identical twins, 77 percent will both have eczema, but it occurs in both fraternal twins only 15 percent of the time. My sons, who are identical twins, had eczema as young children, and one still has it in his 40s. Another indication is the fact that people with celiac disease (a gluten intolerance) are three times more likely to have eczema; relatives of celiac patients are twice as likely to have eczema. Eczema is often called “the itch you can’t scratch,” though a wiser description would be “the itch you shouldn’t scratch.” Scratching can make the lesions worse and expose the skin to infection. “Scratching the spot when it’s itchy brings relief only as long as you scratch it,” said my son, Lorin. “After scratching, the itch generally stays the same or worsens. It’s better not to scratch, though sometimes the itch is so intense that scratching feels compulsory.” Although there is no known cure for eczema, flare-ups can nearly always be minimized and sometimes prevented, and recent research has identified factors involved in its development that may lead to new treatments to control it more effectively.

The medical name for eczema is atopic dermatitis, which reflects the immunological nature of the condition. It is more common among children living in cities than those in rural areas.

Normal skin provides a remarkably effective physical and chemical barrier to substances in the environment. It also prevents substances that should remain in the body from escaping. As Dr. Thomas Bieber, a dermatologist at the University of Bonn in Germany, explained in The New England Journal of Medicine, the hallmark of eczema is an alteration in the skin that allows essential water to escape and environmental allergens (like those from pollen, dust mites and food) to enter. The result is dry, itchy, inflamed patches that are sometimes misdiagnosed as psoriasis. Eczematous skin also lacks normal amounts of a natural antimicrobial agent called cathelicidin, leaving it susceptible to infections that can be hard to control. More than 90 percent of people with eczema have colonies of the bacterium Staphylococcus aureus growing on their skin and contributing to the skin’s allergic sensitivity and inflammation, Dr. Bieber reported. Scratching the lesions enhances the ability of these bacteria to further disrupt the skin’s barrier function. While it has long been known that the skin’s outermost layer functions poorly in people with eczema, researchers at the University of Rochester have identified another reason eczematous skin is susceptible to invasion by allergens. Dr. Anna De Benedetto and co-authors showed that a protective protein called claudin-1 is significantly weakened in the skin of eczema patients but not in those with normal skin or other skin conditions. When claudin-1 is reduced, the “tight junctions” between skin cells become leaky and permeable to environmental allergens and infectious agents. If future studies confirm these findings, developing treatments that strengthen this barrier should improve control of eczema. Current treatment focuses on reducing inflammation, loss of moisture and colonization by bacteria. Doctors typically recommend a prescription steroid,

used topically in tiny amounts, coupled with an over-the-counter moisturizer applied generously right after showering to hold water in the skin. Only mild, nondrying bath soaps should be used. Overly expensive and exotic skin products are not necessary, according to Dr. Lisa A. Beck, a dermatologist at the University of Rochester. But finding the most helpful products may require trial and error. For example, my son tried several steroids before finding that mometasone furoate, the generic version of Elocon, is most effective for him. He has also used coal tar-based shampoo, like Neutrogena T/Gel, for occasional eczema on his scalp. In selecting a moisturizer (often called an emollient), choose a product that contains no scent, which itself can be a skin irritant. An acquaintance who suffered for years with widespread eczema finally found relief last year when her doctor suggested she try taking a nonsedating antihistamine, like loratadine (Claritin), fexofenadine (Allegra) or cetirizine (Zyrtec). Sweat can trigger an outbreak, so it is best to shower as soon as possible after a sweat-inducing activity. Stress can provoke flare-ups in some people with eczema, so measures to reduce stress may be helpful. Food allergies show up as eczema in some patients. Eliminating one potential culprit at a time, like dairy products, eggs or nuts, may reveal an eczema-inducer. Some people develop a form of eczema that results from skin contact with an irritant, not unlike a reaction to poison ivy. Contact eczema is often an occupational disease stemming from exposure to detergents, for example, or various cleaning agents or wet cement. The condition may show up only after the skin is exposed to sunlight. People with eczema on their hands are usually advised to wear cotton-lined waterproof gloves when washing dishes or working with irritating substances. (NYTIMES)

We envision that by improving their pet’s health, we can improve the family’s health as well.” both gain weight. “We have gotten as a population into bad habits for ourselves, and we have extended them to our pets,” Weinstein said. “We need to find ways to change those habits.” Gastelum acknowledged she and Bella had developed bad habits. After a long day at work in Los Angeles, Gastelum used to arrive home and collapse on the couch. Bella ate too much during the day and they rarely walked in the evenings. They both felt exhausted. “I would feed off her energy and she would feed off mine,” she said. “We just lagged.” After being warned about her dog’s weight problem, Gastelum started working with Melissa Morrison, founder of Fur Fitness, an organization that works to reduce pet obesity through training and education. Morrison said her clients feel embarrassed about their pets’ obesity and are usually eager to get them slimmed down. Sometimes, she said, the owners see their pets lose weight and say, “That is great you got the dog healthy — what about me?” During a recent Healthy Pets coalition meeting in Los Angeles, participants broke into groups to discuss topics such as obesity, secondhand smoke, bite prevention and the importance of vaccinations. At one table, they talked about

Los Angeles County public health officials hope that millions of pets living in the region can provide the same sort of inspiration and results for their owners. The idea is simple: If people won’t exercise, eat better and stop smoking for themselves, maybe they will for their pets. pet owners failing to recognize the dangers of pets breathing cigarette smoke and eating cigarette butts. The public health department distributed copies of fliers explaining the risks and urging pet owners, “Stop smoking for their health and yours!” One postcard, featuring a photo of a dog with a gas mask, reads: “Got Fresh Air?” At another table, Weinstein noted owners unwittingly overfeed their pets, advising they give their dog just a cup of food when the container they use holds several cups. Heather Readhead, a family

medicine doctor with the public health department, said she has seen similar problems with her diabetic patients. Readhead said she didn’t know much about animal health before joining the coalition but now sees opportunities to help people by focusing on how they care for their pets. Gastelum set out to exercise with Bella on a recent morning, hooking on a pink and black leash and grabbing a bottle of water. They walked briskly through their quiet Inland Empire neighborhood to a local school, where Bella chased Gastelum around the grass, taking breaks only to

take a few sips of water from a small bowl. A bird flew by and Bella took off running. “Go get ‘em, baby girl,” she said, but the bird was too fast. Since starting the fitness routine last year, Gastelum said she has lost six pounds and Bella has dropped 10. They both stopped being couch potatoes and now have much more energy. Back home, Bella, panting softly, climbed up onto a leopard-spotted blanket. Gastelum, face glistening with sweat, sat down beside her and patted Bella’s head. (LATimes)

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August 2013 Vol. 2 No. 8

Tourism Rampak Bedug Dance Enhances Tourism Attraction at Tanjung Lesung TPP/Muljadi Suganda/Rachmat W. Suryo

On every weekend (Friday-Saturday), the management of Tanjung Lesung presents a variety of cultural art performances. One of them is Rampak Bedug dance, the hallmark of South Banten’s cultural art. It is played by 10 people (five men and five women).

s an international tourist destination, the natural scenery of Tanjung Lesung is undoubtedly beautiful. And as it is located at South Banten, which has rich cultural arts, Tanjung Lesung has highlighted local cultures as special attractions to entertain tourists. On every weekend (FridaySaturday), the management of Tanjung Lesung presents a variety of cultural art performances. One of them is Rampak Bedug dance, the hallmark of South Banten’s cultural art. It is played by 10 people (five men and five women). As the name implies, “rampak” means “unison” (serempak), so Rampak Bedug is the art of beating the drum in unison which produces the typical catchy rhythm. At first Rampak Bedug dance

was only performed at Takbiran night before Eid day. But now, it has evolved as a professional art to enliven celebrations such as

weddings, circumcisions, and national memorial days. This energetic dance is always able to catch the heart of tourists,

especially when it is performed in a tourism area surrounded by natural beauty yet still laden with local cultural arts.

“Rampak” means “unison” (serempak), so Rampak Bedug is the art of beating the drum in unison which produces the typical catchy rhythm.

August 2013 Vol. 2 No. 8

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Travel

The Komodoes of Rinca Island It only needed one bite and the komodo was able to spread various types of bacteria through its saliva. The bacteria made the wound become worse and a deadly infection for the buffalo and caused the buffalo to weaken day by day. Text & photos by Adita Alaik

he barren hills stood tall as if embracing the deep blue sea, creating an image of incredible beauty. The cloudless blue skies also gave way for the sun to radiate its lights without any obstacle. Luckily for me, I was sheltering under the roof of a traditional river boat, or locally known as kapal klotok, that transported me from Labuan Bajo port in East Nusa Tenggara to one of the islands in the Komodo National Park, the Rinca Island. I decided to visit Rinca Island after getting a brief explanation from Uncle Djoebuki about a certain process which was at the time taking place. Uncle Djoe works for the Komodo National Park (TNK) and he was my guide for this trip. He said to me, “There are two islands that tourists like to visit, the Komodo Island and Rinca Island. But rangers said that currently there is a dying buffalo which is being followed around by dozens of komodoes. This is a good opportunity if you want to see how the komodoes feed.” After three hours, we finally arrived at the gate of Rinca, where many tourists’ boats had already parked. TNK is one of the most favorite destinations for foreign tourists. Many tourists who visit Bali often cross over to TNK, which is actually a wise decision. It would be ashamed if you are in Bali but not visit TNK since the ancient dragon, which in Latin is called Varanus komodensis, only exists in Indonesia, while the distance between Bali and TNK is not far. “Let’s go tracking to see the dying buffalo, it should not be far. According to information, it’s just about 30 minutes walk,” said Uncle Djoe enthusiastically. Despite the boiling heat, I automatically jumped off from the boat as I had already replaced

my sandals with a pair of shoes and I was fully equipped with my backpack loaded with drinking water and snacks. I had also put on a pair of black polarized sunglasses to protect myself from the UV rays plus a hat to protect my head from the heat. I was all set to go! As we turned to a muddy corner, I saw a weak and exhausted water buffalo or bubalus bubalis, which was surrounded by dozens of komodo awaiting the buffalo’s death. There was a wound on the buffalo’s back of about 20 centimeters wide, indicating that it was suffering an infection which later produced an unpleasant odor that attracted flies. Such was the legendary method used by komodoes to weaken their prey. It only needed one bite and the komodo was able to spread various types of bacteria through its saliva. The bacteria made the wound become worse and a deadly infection for the buffalo and caused the buffalo to weaken day by day.

When the buffalo stopped and took a rest out of exhaustion, the komodoes slowly approached it and hoped they could start feasting on it. But the buffalo’s awareness was still high and it quickly stood up and gathered its remaining strength and tried to hold on until the very end. After about an hour, the buffalo finally collapsed, unable to fight the infection that was spreading across its whole body.

“It takes about two weeks for the buffalo to reach its death since the first day it got bitten. When the buffalo became so weak the komodoes would feed on it, they didn’t have to wait for the buffalo to actually die,” said Uncle Djoe. Uncle Djoe’s explanation was new information to me. I thought that komodoes only eat carcasses. When the buffalo stopped and took a rest out of exhaustion, the komodoes slowly approached it and hoped they could start feasting on it. But the buffalo’s awareness was still high and it quickly stood up and gathered its remaining strength and tried to hold on until the very end. After about an hour, the buffalo finally collapsed, unable to fight the infection that was spreading

across its whole body. The poor buffalo reached its end but that was part of nature’s food chain system. I just hope that the buffalo didn’t feel any pain because it was in such a very weak condition. Dozens of foreign tourists who had been waiting for that to happen immediately seized the moment by capturing it on their gadgets with different expressions on their faces such as feeling sorry for the animal. Some were curious while others seemed amazed. But whatever mixed feelings they had about that, they couldn’t hide the fact that they were glad they could capture such a rare opportunity that could not be found in other parts of the world.

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August 2013 Vol. 2 No. 8

Culture okezone.com

Maluku to Have Spice Museum The province of Maluku, historically known as the Spice Islands, will soon have a spice museum, the first of its kind in Indonesia. Once established, it is expected to attract numerous visitors to smell, taste, and touch the spices on display.

ccording to Governor Karel Albert Ralahalu, the concept for the spice museum is based on Maluku`s historical attraction for ancient Indian, Chinese, Arab, and eventually European traders in search of spices. The governor noted that the Portuguese had built their first fort in the area in 1511 on the island of Ternate, North Maluku, where they cornered the trade in cloves. The Dutch, who arrived in 1599, posed the first serious threat to the Portuguese in controlling Maluku`s treasures. When armed conflict broke out, it took a heavy toll on the island`s population. The Dutch finally emerged victorious and enforced an iron-clad trade monopoly. Entire villages were razed to the ground and thousands of islanders died, particularly on the island of Banda. During the Napoleonic Wars, the British briefly occupied Maluku. However, Dutch rule was soon restored in 1814. Years later, in 1863, the mandatory cultivation of spices was completely abolished across the province. Governor Ralahalu noted that the spice museum was intended to reflect the golden age of the province`s spice industry, when nutmeg and cloves were the costliest commodities available in the global market during the 16th century. “Unfortunately, the glory of

Maluku as a spice-producing province has now disappeared, and the spice farmers live on in poverty,” the governor continued. He said the nutmeg and clove trees belonging to the farmers were too old, and their productivity declined every year. Something had to be done to revitalize the area. “These problems drove us to build a spice museum to provide education and a starting point for research for the nation`s future generations,” remarked Governor Ralahalu. Plans for the initiative have already been conveyed to Coordinating Minister for People`s Welfare Agung Laksono. Ambon Pattimura University and various technical departments will also be involved in the approval process. Meanwhile, Minister Agung Laksono said in Ambon on Tuesday that he was in favour of the construction of a spice museum in Maluku. “I welcome the idea of a spice museum in Maluku, which was once called the Spice Islands and was the only place where nutmeg, mace, cloves, and other valuable spices were grown,” said Agung the previous day, on Monday evening, at the first International Conference on Spices in Ambon. Speaking on the occasion, the minister suggested that the museum could be used as a laboratory of spices in Indonesia. Agung pointed out that local and foreign students would find great

Governor Karel Albert Ralahalu

Governor Ralahalu noted that the spice museum was intended to reflect the golden age of the province`s spice industry, when nutmeg and cloves were the costliest commodities available in the global market during the 16th century. educational value in such a museum, where they would have the opportunity to recognize and study the various spices grown in Indonesia. “The spice museum should have multiple functions that meet world-class standards in support of marine and tourism development in Maluku,” acknowledged the minister. He gave the example of a cigarette factory that had constructed a “kretek” museum (displaying cigarettes containing cloves) with raw materials from Maluku. “Therefore, building a worldclass spice museum in Maluku is a reasonable goal, and I hope

Indonesia Promotes Javanese Culture in Frankfurt The Indonesian Consulate General in Frankfurt, in cooperation with the Frankfurt University`s Southeast Asia Department and supported by Indonesian community in Frankfurt and its environs, conducted the Java Tag (Java Day) in the university, a spokesman said. The Java Tag was aimed at promoting the Javanese culture by performing, among other things, dances, pencak silat (martial arts), and batik workshop by a German batik expert, Annegret Haake, said Hendriek Yopin, spokesman of the Indonesian Consulate General in Frankfurt on Wednesday.

The Java Tag (Java Day) was aimed at promoting the Javanese culture by performing, among other things, dances, pencak silat (martial arts), and batik workshop by a German batik expert, Annegret Haake.

According to him, the Indonesian consul general in Frankfurt, Damos Agusman, expressed his appreciation to the Java Tag`s organizers and hoped that such event can be held annually. The Javanese “gamelan orchestra” also enlivened the Java Tag, Yopin said, adding that around 200 people of various nations attended the first-ever Java Tag in the German city of Frankfurt. In the meantime, Chairman of the Frankfurt University`s Southeast Asia Department, Prof. Dr. Arndt Graf also hoped that such Java Tag will take place again next year.

Bali to Host International Puppet Festival indonesia.travel

Bali will host the International Wayang (puppet) Show Festival in September 22-27 in Gianyar District, Chairman of the festival organizing committee I Gede Joni Suhartawan said here on Monday. “Apart from being attended by local artists, the event will also be participated in by artists from eight countries namely Japan, the United States, Iran, Malaysia, the Philippines, China, India and Thailand,” he said. He explained Indonesian participants will perform their skills in playing with various Wayang (traditional puppet), namely wayang Golek (originated from West Sumatra province), Wayang Wonosari (Yogyakarta), Wayang Potehi (Central Java) and wayang Sasak (West Nusatenggara). Each perform-

The International Wayang (puppet) Show Festival will be participated in by artists from eight countries namely Japan, the United States, Iran, Malaysia, the Philippines, China, India and Thailand. er will be given 30 to 60 minutes time to perform. Gianyar District Head Anak Agung Gde Agung Bharata ex-

pressed appreciation towards the upcoming event saying that it is an effort to preserve Indonesia`s tradition.

Minister Agung Laksono

The most important goal is for the presence of this museum to contribute greatly to the prosperity of the people, particularly the spice farmers in Maluku and beyond.”

the governor and relevant technical departments will design it together,” Agung explained. He expressed hope that the presence of this museum would motivate the younger generation in Maluku to restore the golden age of spices to the province. “The most important goal is for the presence of this museum to contribute greatly to the pros-

perity of the people, particularly the spice farmers in Maluku and beyond,” he added. Agung has urged the Ministry of Agriculture to increase the number of spice plantations across Indonesia. “It is important to increase the number of spice plantations, but it is not necessary to do so under the auspices of thriving businesses such as cocoa and palm oil plantations,” the minister continued. Agung noted that a national movement should be initiated to encourage the public to cultivate various kinds of spices, similar to the process adopted by cocoa, tea, and palm oil plantations. He has urged Agriculture Minister Suswono to enforce Law No.18/2004 on plantations by issuing a government regulation to strengthen the Indonesian Spices Council (DRI). The DRI is an organisation that brings together various stakeholders, including farmers` associations that deal with pepper, cloves, tobacco, vanilla, shallots, and garlic. The aim of the DRI is to increase the number of farmers growing spices and the number of related stakeholders in Indonesia. According to Agung, spices continue to hold high economic value in world markets, but ironically, spice farmers in Indonesia have not prospered. “Therefore, spice commodities should become the mainstay of these farmers

Palembang will be one of the four cities in the world to host the festival this year. The other cities are London, Paris and Geneva.

S. Sumatra to Host Islamic Fashion Festival The South Sumatra provincial capital of Palembang will host an International Islamic Fashion Festival (IFF) on September 8 this year. “Palembang will be one of the four cities in the world to host the festival this year,” spokesman of the event`s organizing committee Encik Ahmad Rizian bin Abd Gani of Malaysia said here on Thursday. The other cities are London, Paris and Geneva. Among the four cities, Palembang will be the first

to host the festival this year, he said. He said the selection of Palembang as the host of the event is because Malaysia and Indonesia have many things in common. In addition, South Sumatra will also host Islamic Solidarity Games which will coincide with the festival, he said. South Sumatra Governor Alex Noerdin said after receiving members of the event`s organizing committee that the provincial government will fully support the festival to make it a success.

August 2013 Vol. 2 No. 8

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Automotive

Mercedes-Benz A45 AMG: Mercedes Class Meets Porsche Dynamics With so many MercedesBenz AMG models floating around the market at the moment, it would have been easy to forget that the German giant doesn’t have a direct competitor to the Audi RS3 hatch or the BMW M135i. That’s where the new A45 AMG is said to step in.

t storms out of the turn, pulling strongly and without any of the torque steer you’d expect if this were a powerful front-drive car, but AMG wisely chose an AWD configuration for the A45. Body control is excellent; roll, pitch, and dive are virtually nonexistent as the AMG prototype charges around the track. The newly developed AMG 2.0-liter turbo engine is the most powerful series production fourcylinder turbo engine in the

world. A maximum output of 265 kW (360 hp) and up to 450 Newton meters of torque are unmatched by any other mass-produced turbocharged four-cylinder engine worldwide. The power density of 133 kW (181 hp) is also absolutely unrivalled. In this discipline, the new AMG high-performance turbo engine even outstrips the most powerful super sports cars. The gearbox is a seven-speed dual-clutch automatic, and here’s where the effort has real-

ly gone into making this more than just a fast A-class. It drives through Mercedes’ 4Matic system, making the A45 AMG fourwheel-drive. To that end, the multi-link rear suspension is new, while to improve weight distribution, the clutch that enables drive to the rear is mounted at the rear differential. As is current AMG fashion, the A45 comes with the so-called AMG Drive Unit that enables the selection of different driving modes. In Normal mode, gear

changes are smooth and seamless; selecting Sport or Sport Plus mode noticeably quickens the swaps. And for spectacular NHRA-like full acceleration from a stop, the A45 AMG is equipped with launch control.The A45 is the smallest car ever tuned to an AMG fare-thee-well. AMG brand claim “Driving Performance” to perfection: a fascinatingly sporty driving experience combined with impressive craftsmanship and pronounced individuality. The A45

AMG brand claim “Driving Performance” to perfection: a fascinatingly sporty driving experience combined with impressive craftsmanship and pronounced individuality.

gets a new bumper and grille at the front, which wouldn’t be significant were they not backed by an intercooler for the turbo, while there’s a secondary radiator inside a front wheelarch. In Germany, the equivalent of $64,000 is a lot of money for a Mercedes A-class, but we see it as fair for a compact car that delivers Porsche-like dynamics. The A45 AMG is also the perfect family car – ideal if the stork has arrived or is about to and your sports car has to go.

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ASEAN Review

Indonesian-Malagasy Dictionary Launched in Madagascar The launch of the second edition of the Indonesian-Malagasy Dictionary was well received by stakeholders in Madagascar. The Indonesian Embassy in Antananarivo sees the need to make improvements over the first edition of the dictionary, which was published in 2008.

he Indonesian government through its Embassy in Antananarivo and in cooperation with the Ministry of Culture and National Heritage of Madagascar has launched the Indonesian– Malagasy dictionary at the Anosy National Library, Antananarivo, Madagascar (July 25). “Through the Dictionary, the relationship and historical ties between the two countries and peoples can be seen primarily through the field of linguistics,” said Indonesian Permanent charge d’affaires in Antananarivo, Artanto S. Warga Dinata. The similarity of the two nations is surprisingly visible in the

dictionary. There are similarities in words and meaning in Malagasy and Indonesian languages. “The result of the study conducted by researchers is a scholarly work that deliberately explores scientific background specifically of the relationship between Indonesia and Madagascar,” said Artanto. Meanwhile, recent multidisciplinary research and work in archaeology, genetics, linguistics, and history confirm that the Malagasy people were originally and overwhelmingly Austronesian, native to the Indonesian archipelago. The Malagasy language shares many common roots

Cherry Belle Personnel Obtains BA Degree from President University President University (PRESUNIV) organized its 8th graduation ceremony at the President University Grand Ballroom, which can accommodate up to 5,000 people, on July 27. The graduation ceremony organized this year was themed “Progressively Stepping Into the Era of Entrepreneurial Collaboration with the International Community”. As of this year, President University has produced as many as 550 graduates from six faculties at President University, namely: Faculty of Economics, Faculty of Engineering, Faculty of Communication and Multimedia, Faculty of Computing, Faculty of Business and International Relations, and lastly, Faculty of Law. One of Cherry Belle’s personal – a famous Indonesian AllGirl Band – Cherly Yuliana Anggraini was one of the graduates in the graduation ceremony. Cherly was one of the outstanding graduates of the Faculty of Communication, majoring in Public Relations. As both a former student of the University and the current captain of renowned Cherry Belle, Cherly was able to manage her time really well, especially between college time and working. She not only managed to graduate on time, but also became one of the award achievers in non-academic category at PRESUNIV. Cherly stated that she was really happy and proud in obtaining her

President University has produced as many as 550 graduates from six faculties at President University. One of Cherry Belle’s personal – a famous Indonesian AllGirl Band – Cherly Yuliana Anggraini was one of the graduates in the graduation ceremony. degree from the University. On this occasion, the other personnel of Cherry Belle (a total of seven members) also attended the graduation ceremony to witness and congratulate their captain. The graduation ceremony, which was attended by no less than 2,000 guests, was also attended by some prominent guests such as the Somalian Ambassador, the Counselor of Vietnamese Embassy in Indonesia, the Counselor of Mozambique Embassy in Indonesia, as well as several President University’s affiliated companies’ representatives from Indonesia and abroad. Moreover, the first Indo-

nesian CEO of PT General Electric Indonesia, Handry Satriago, was given a chance to deliver an inspirational speech to PRESUNIV’s graduating students. President University is the 21st century model of tertiary education in Indonesia established to train future leaders in their fields of expertise to face the global competitions. President University has students from all parts of Indonesia and other countries such as China, USA, Vietnam, Malaysia, Singapore, Somalia, the Philippines, South Korea, Malaysia, Mozambique, and Laos. (Randy Azhary Pahevi)

ASEAN Studies Center Established at UNSRAT Ditjen KS ASEAN

ASEAN Studies Center (PSA) at Sam Ratulangi University (UNSRAT) was inaugurated on July 29 in Manado. Its establishment is one of the many forms of cooperation between the Directorate General of ASEAN Cooperation, the Ministry of Foreign Affairs and UNSRAT in the fields of Education, Scientific Research/ Review and Public Services. The cooperation was realized through a Memorandum of Understanding (MoU), which was signed by the Directorate General of ASEAN Cooperation, Ambassador I Gusti Agung Wesaka Puja, and the Rector of Sam Ratulangi University, Prof. Dr. Donald A. Rumokoy. “The importance of connectivity issues related to maritime issues for Indonesia is the biggest challenge for Sam Ratulangi University to make maritime connectivity issues as the focus of PSA review material in the future,” said I Gusti Agung Wesaka Puja. In the meantime, UNSRAT Rector said, “It is expected that the cooperation is able to support UNSRAT efforts to be a ‘research university’“. In the short term, PSA is expected to play a concrete role in

The cooperation was realized through a Memorandum of Understanding (MoU), which was signed by the Directorate General of ASEAN Cooperation, Ambassador I Gusti Agung Wesaka Puja, and the Rector of Sam Ratulangi University, Prof. Dr. Donald A. Rumokoy. the process of dissemination on ASEAN, particularly the 2015 ASEAN Community, to college students, academics and the public at large. In this case, PSA has a significant role as an agent of dissemination, pool of expertise, and provider of policy recommendations. In this regard, each university where PSA has been established has basic capital in the form of courses related to ASEAN.

Since October, 2012, 8 PSAs have been established at Gadjah Mada University, Airlangga University, University of Indonesia, Hasanuddin University, Andalas University, Brawijaya University, Sam Ratulangi University and Padjadjaran University. In the context of strengthening Indonesia’s efforts to make use of the 2015 ASEAN Community, the establishment of PSA at other universities in Indonesia will be continued.

with the Barito and Dayak languages of South Borneo, such as Ma’anyan, and belongs to the Austronesian language family, with closest affinity to the Malayo-Polynesian languages of Borneo. Malagasy cultural traditions shared with Austronesians of Taiwan, the Pacific Islands, Indonesia, New Zealand, and the Philippines include ancient customs such as burying the dead within a canoe in the sea or in a lake, the cultivation of traditional Austronesian crops such as taro or saonjo, banana, coconut, and sugar cane, traditional architecture with a square house plan, music and musical

instruments such as the Antsiva conch, the hazolahy drum, the atranatrana xylophone, sodina flute, or the valiha tube zither, and dance, including the “bird dance”, found both in central and southern regions. The launch of the dictionary was marked with IndonesianMalagasy arts and cultural performances, among others traditional Indonesian dance, music typical of the northern regions of Madagascar and Valihy Malagasy. The dictionary, published by Valipanany Rejo Arline in collaboration with Jorondraza, is really needed, especially for Malagasy citizens who are interested in

studying Indonesian Language or for Indonesian people who want to deepen their knowledge in Malagasy language. Furthermore, Artanto said that the dictionary is published and distributed to enrich the wealth of literature relations between the two countries and can serve as a reference approach to the two countries. The launch of the second edition of the Indonesian-Malagasy Dictionary was well received by stakeholders in Madagascar. The Indonesian Embassy in Antananarivo sees the need to make improvements over the first edition of the dictionary, which was published in 2008.

The similarity of the two nations is surprisingly visible in the dictionary. There are similarities in words and meaning in Malagasy and Indonesian languages.

Indonesia Wins Three Awards at ABU Robocon Contest in Vietnam The Indonesian team ERSION from Politeknik Elektronika Negeri Surabaya (PENS) won three awards at the ABU Asia Pacific Robot Contest 2013. The team won the ABU Robocon Award, the highest award in the competition. Other achievements are 2nd Runner Up ABU Robocon 2013 and Special Award from ROHM Co.Ltd The ABU Robocon 2013 was held in Vietnam on 18th August 2013 where 19 engineering teams from 18 coun-

tries participated, among others, Indonesia, Vietnam (2 teams), Japan, Hong Kong, Iran, Nepal, Kazakhstan, Fiji, and Sri Lanka. The winner of ABU Robocon 2013 is Kanazawa Institute of Technology coming from Japan. ERSION won three times on Green Planet, the theme of the competition. The event was organized by the Asia-Pacific Broadcasting Union (ABU) and VTV (Vietnam Television). Addressing the closing ceremony, Deputy Prime Minister of Vietnam Nguyen Thien Nhan

emphasized that to master scientific knowledge and apply advanced technologies in the fastest manner, young students should become the vanguard of social renovations. He urged them to study harder to fulfill their mission in the future. The ABU Robocon has offered an intellectual playing field for young talents and given fresh impetus to developing science and technology in Vietnam in particular and the region in general as Asia-Pacific is becoming

the world’s most dynamic region. Director of Research and Community Service Ministry of Education Agus Subekti said that Ditjen Dikti will always support Indonesian teams in international competition, and also encouraged Indonesia to host ABU Robocon Contest in 2015. In 2014, India will host the ABU Robocon under the theme of “family” with the aim of promoting the importance of family relations.

August 2013 Vol. 2 No. 8

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Golf

South Korean Golfer to Lead Asian Team in the Royal Trophy golf.com

Yan Yong-Eun took over the captaincy of Japanese golfer Joe Ozaki to retain the team title at the annual tournament.

outh Korean golfer, Yang Yong-Eun, as the winner of the Asian women’s golf major tournament, will act as captain in the Royal Trophy to be played on 20-22 December 2013 at Dragon Lake Golf Club in Guangzhou against a European team led by Jose Maria Olazabal. Yan Yong-Eun took over the captaincy of Japanese golfer Joe Ozaki to retain the team title at the annual tournament. Previously, Ozaki was captain

of Asia five times out of six previous editions of the competition. The team from the event reinforced the eight golfers. Yan Yong-Eun was very proud to take over the position of team captain for the Asia Royal Trophy and he plans to build a very strong team to defend the title Royal Trophy for Asia team. Meanwhile, Jose Maria Olazabal has captained the European team twice, including in 2012, but he is yet to produce a victory for his continent.

“To lead the European Team as captain once again is very special and we will play very hard to win the Royal Trophy for Europe,” the 47-year old Spaniard said. “Jose Maria Olazabal is an outstanding captain and player and Y.E. Yang stands with the golf stature of a Major winner. The next edition of the Royal Trophy to be played at Dragon Lake Golf Club promises to be phenomenal,” said Lincoln Venancio, Royal Trophy Co-Managing Director.

Yang Yong-Eun

Indonesia Holds First College Golf Turnament Golfer Bobby Cahyo Aditomo led the first day. He recorded 68 strikes or 4 under par. History was created in the world of Indonesian golf. For the first time, Indonesia has a college student golf league. This is the first sport in Indonesia competed for college students. Located at Imperial Golf Club, Lippo Karawaci, Tangerang (July 19-21), eleven universities participated in this event, namely University of Multimedia Nu-

santara, Telkom Institute of Technology, State University of Jakarta, President University, Padjadjaran University, Universitas Bina Nusantara, Prasetya Mulya, IM Telkom, University of Pelita Harapan, Widyatama University, and Langlangbuana University. In this competition, LIMA, the

executive board of the college student league cooperated with the Indonesian Golf Association (PGI PB) to make this golf competition that emphasizes achievement in competition. LIMA used international golf rules imposed by the R & A Rules Limited, the participants played in accordance with the International standard 18 holes and 72 par. Golfer Bobby Cahyo Aditomo led the first day. He recorded 68 strikes or 4 under par. But on the second day, he had to settle for 76 strikes or 4 over par. Besides Bobby, Jordan Surya

Irawan also achieved a considerable maximum results in the first day. The Widyatama University golfer was ranked second with 72 strikes or event par. On the second day, he only recorded 75 strikes or 3 over par. With this result, the first and second rank still has not changed. Bobby Cahyo still leads in the first rank with the acquisition of 144 strikes or even par, followed by Jordan, who won 147 strikes or 3 over par. While in the four positions, Dicky Prionggo (Binus University) who recorded a total of 155 punches.

This is the first sport in Indonesia competed for college students. Located at Imperial Golf Club, Lippo Karawaci, Tangerang July (19-21), eleven universities participated in this event.

GolfSense: Improve Your Swing! If you’ve ever had a club fitting before, you’ll probably remember all the cool technology used to see how good (or bad) your swing was. Maybe you should take some of that real time swing evaluation technology home or even to the range with you. One of the most exciting new product categories that emerged from the 2012 PGA Merchandise Show was “high tech swing trainers.” The product is GolfSense. This device is a glove-based sensor system. The Sensor itself is a small, very light (17-gram) device that attaches to your golf glove and works with an iOS or Android app to help improve your golf game. Specifically, the Sensor stores swing data, and then communicates that data with the app for analysis. We interact with the app to study the recorded data and (in theory) figure out why our golf ball isn’t going where we want it to go. 3D Motion Capture GolfSense is the world’s first portable three dimensional sensor system designed to deliver real-time feedback and analysis of your golf swing. The patented high velocity motion engine uses data from 4 discrete

MEMS sensors inside the device to accurately calculate club speed, club position, swing tempo, and swing path. The Sensor attaches to your glove using two rubber straps on the back of the sensor, which slide over the velcro closure found on (most) golf gloves. The revolutionary and free mobile app allows you to analyze each segment of your swing from any angle. The application can be set to automatically capture and save every swing in rapid succession or just the ones you select with a simple press of the yellow button. Turn on “impact detection” and GolfSense will ignore your practice swings and only log those that pertain to actual ball contact. To use the GolfSense app, you need a free GolfSense account, which can be easily setup within the app. Once you’ve recorded your golfing, the app lets you view any recorded swing. When doing so, you can watch a replay, dig into the stats, or just use the overview to get a sense for what was good and bad about that particular swing. So, what do you think about the devices?

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Borobudur International Golf & Country Club

The World’s Great Temple, Historical Mountain & Beautiful Golf Course

The Borobudur International Golf & Country Club was elegantly designed by the world class golfer Douglas Duncanson, and completed by experts in golf course building of PT Jababeka Golf Cikarang.

he Borobudur International Golf & Country Club is located in Magelang a town in the valley of Mount Tidar, 40 km north of Yogyakarta and 60 km south of Semarang. Furthermore, this golf course is located near a mountain with interesting sights and cool air. The fairway is so narrow, it requires precision play. In this course, each hole is unique. For the record, the Borobudur International Golf & Country Club is known for its firstclass services and its young caddies. The Borobudur International Golf & Country Club was elegantly designed by the world class golfer Douglas Duncanson, and

completed by experts in golf course building of PT Jababeka Golf Cikarang. This golf course is one of the best golf courses in Central Java and Yogyakarta in addition to Merapi Golf Course and Golf Course Gombel. The Borobudur International Golf & Country Club used to be the Persatuan Golf Tidar, which was a simple golf course of 9 holes. In August 2006, the golf course began its renovation. In April 2007, Army Chief of Staff General Djoko Santoso officially declared the golf course open. On June 2, 2007 Minister of Culture and Tourism Jero Wacik, officially declared the new name of the golf course Borobudur International Golf & Country Club.

A beautifully built green in the lake offers an attractive challenge even for professional golfers. The golf course is also equipped with a luxurious clubhouse that offers multiple functions and uses. The clubhouse restaurant serves European, Oriental, Chinesse and Indonesian menu at reasonable rates. A well-stocked proshop enhances the clubhouse with various well-known branded golf equipment that guarantees satisfaction to golfers. There is ample space for parking and allows easy entry and exit. For beginners and professionals as well, the Borobudur International Golf & Country Club offers a driving range supervised by experienced instructors and friendly caddies.