The president post january 2015

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January 2015

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NATIONAL

SPECIAL REPORT

TRAVEL

Solar Eclipse Draws More Attraction to Tourism Destinations

Arief Yahya’s Moves in Hunting 20 Million of Foreign Visitors

Tanjung Lesung, Paradise on The West Coast

- page A2

- page B2

page B6

ASEAN Economic Community Mounting Pressures Ahead BY ATMONO SURYO

ASEAN Current Position The international community recognizes that enormous changes have developed in the global economy. Altering the world economic landscape and outlook in a significant way. But with the many uncertainties popping up no one can predict in what direction the world will be heading in the years ahead. No one can also be certain what ASEAN’s economic position will be in the Asia Pacific region and in the larger global context. How the individual economies of the association will develop to bring jobs and prosperity to their people. Some earlier predictions suggest that if ASEAN is well managed the countries and the more than 600 million people in South East Asia can count on a bright future in the coming decades. But with mounting pressures still looming ahead. Judging on the positive side one will undoubtedly confirm that in addition to China and India ASEAN’s collective achievements during the past decades have been quite impressive. With the high economic growth

reaching around 5 to 6% and expanding GDPs. According to McKinsey in terms of GDP ASEAN has achieved to become the 7th largest economy in the world. With a GDP of 2.4 trillion USD (2013) - after the United States - China - Japan Germany - France and the United Kingdom. It is estimated that ASEAN may become the 4th largest economy by 2050. International organizations such as the World Bank, Asian Development Bank, OECD and a number of international banks are all rating ASEAN as one of the most dynamic and fastest-growing region in the world. In terms of business ASEAN with Indonesia in the lead has become a very attractive region. For an increasing number of developed and developing countries. It is also recognized by the international community that ASEAN is also beginning to function as a dynamic economic hub in the Asia Pacific region. Economic Integration Apart from the many shortcomings and failures ASEAN’s economic track record during

ASEAN Trade with Selected Trade Partner, 2011

ASEAN TRADE 2011

Country

Value In Million USD

Intra ASEAN

598,242.24

ANZ

67,711.14

Canada

10,771.15

China

280,405.55

EU-27

234,776.15

India

68,428.78

Japan

273,347.07

Korea, Republic of

124,470.90

Pakistan

6,767.45

Russia

13,967.90

USA

198,785.92

Others

510,918.05

Trade

2,388,592.28

Others 21.4%

USA 8.3%

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The government is currently recounting the fuel price to adjust to the change in world oil price. “In light of the world oil price decrease, we are currently exploring options,” said President Widodo. He also revealed that the Coordinating Minister of Economics Sofyan Djalil had been formulating a policy regarding national crude oil price revision. The government has three options in regards to the decrease of global oil price. However, President Widodo refused to discuss said three options further. “We are carrying in mind the best interests of the people,” said President Widodo. On November 17 2014, President Widodo announced an increase in fuel price from IDR 6,500 to IDR 8,500, and subsidised solar from IDR 5,500 to IDR 7,500. President Widodo promised to announce

the price revision before New Year’s Eve. For the first time in five years, global oil price went down, and it has been predicted that the price will stay down until the first six months of 2015. At The New York Mercantile Exchange, the oil flow for January 2015 has gone down by 4.2 per cent at US$ 63.05 per barrel. Brent crude oil for January at ICE Exchange Futures London went down 4.2 per cent at US$ 66.19 per barrel. This this the lowest point in European oil price since September 29 2005. Some analysts assume that American oil mining and the current economic situation in Japan are the factors that affect the trade of oil as of Monday, December 8 2014.

ANZ 2.8%

Russia 0.6% Pakistan 0.3% Korea, Republic of 5.2%

China 11.7% Japan 11.4%

two decades is a positive indicator of its importance as a regional organization. International observers firmly suggest that ASEAN has the potential to surge ahead to become another powerhouse in East Asia alongside China, India, Japan and South Korea. It is understandable, however, that aside from the formal

Canada 0.5%

EU-27 9.8%

India 2.9%

Source: ASEANStats Database as of September 2012 for FDI ASEANStats Database as of November 2012 for Trade circles not much is known by the general public about ASEAN as a regional organization. Including in particular Indonesia as the largest country and one of the key founders. To be aware of ASEAN’s visions and goals, their policies and programs but also their many achievements and shortcomings. It would not be the right

Crude Oil Price Goes Down, Subsidised Fuel Price Revised President Joko Widodo stated on December 12 2014 that the government would revise the price of subsidised fuel following the decrease of world oil price.

Intra ASEAN 25.0%

way to look only at the shortcomings aspects.

AEC 2015. With the main aim to become a single market and an important production base.

Complex process It must be noted that after going through the traditional process of economic and trade cooperation ASEAN is presently going through the difficult and complex process of regional integration. Which includes in particular the establishment of

In the area of trade expansion ASEAN is presently already rated as a very large expanding market; centered in Indonesia as the largest country. But so far not much progress has been achieved to develop South East Asia as a production base. ...continued on pg. A3

Missing Air Asia QZ8051: Quotes “I have ordered Komite Nasional Keselamatan Transportasi (National Committee for Transportation Safety (KNKT)) to work as efficiently as possible to find out the cause of the (plane) crash so KNKT can work on what needs to be improved in air travel safety. I am sure they are more than capable to do it.”

“In light of the world oil price decrease, we are currently exploring options,”

-Joko Widodo, President of Indonesia

-Joko Widodo, President of Indonesia

“We highly appreciate the hard work and strong will of everyone involved in the search for Air Asia OZ 8501.” “We’ve deployed 30 ships and ships and we also have foreign aid. We will do our maximum best.” -Jusuf Kalla, Vice President of Indonesia

“We will keep praying and hoping for the best for the families and friends of QZ 8501 crash victims.” Source: antaranews.com

“We will do our best to help the families of QZ 8501 passengers and cabin crew. They are our main concern right now.” -Tony Fernandes, Air Asia CEO

Revision of Japan’s gross domestic products and sentiments regarding the slow economic growth in China and Europe also affect the global market,” said American energy analyst Tim Evans, as quoted by stock market website MarketWatch.com on December 9 2014.

“So far we have a lot of help from other countries such as three ships from Malaysia and three ships from Singapore in addition to our own Tentara Nasional Indonesia (Indonesian Military Forces (TNI)) ships and planes. Our TNI team is already on the move. We will update you with details as we go along.” -Ignasius Jonan, Minister of Transportation

Source: energitoday.com


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January 2015

National & International

Solar Eclipse Draws More Attraction to Tourism Destinations Total solar eclipse, which only occurs once roughly every 40 years, never fails to draw attention from all walks of life, from astronomy experts to photography enthusiasts to those who are plain curious.

Moon’s Orbit

Source: UniversalLifeTools.com

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hese people are willing to spend a lot of money just to get to the total solar eclipse location. On April 24 2014 at a gathering held by Himpunan Astronomi Indonesia (Association of Indonesian Astronomers (HAI)), Head of National Space and Flight Institution Prof. Dr. Thomas Djamaluddin announced that the next total

solar eclipse would occur on March 6 2016. This natural phenomenon is expected to pass through a number of cities in Indonesia such as Palu in Central Sulawesi and Palembang in South Sumatera. Word on this up-coming total solar eclipse has spread even overseas, and this has been acknowledged by the Indonesian chapter of Pacific Asia Travel Association, which

oversees 1,100 industries in the tourism sector in 42 countries. CEO of PATA Indonesian Chapter (PIC) Poernomo Siswoprasetijo said on January 15 2015 that PIC had signed partnership with The Ministry of Tourism and Creative Economy to accelerate the construction of hotels in the cities that the total solar eclipse would pass through, especially

Indonesian Villages Ready for E-Village

Palu where the eclipse was expected to be visible the longest. Siswoprasetijo also added that most hotels in Palu were already fully-booked for the total solar eclipse date.

of ships, boats and ports. There have even been talks of building floating hotels and he hoped that two years, starting from 2014, would be enough to prepare all the infrastructure.

Furthermore, Siswoprasetijo said that the total solar eclipse should also be able to attract attention to maritime tourism, therefore PIC has met with investors to improve the quality

“We would like to repeat the success story of the total solar eclipse in 1983 which attracted many local and international tourists, as the government had spread the word about it

long beforehand,” said Siswoprasetijo, referring to the same phenomenon which occurred on June 11 1983. This total solar eclipse, which passed through Sangihe Island in North Sulawesi, was broadcast nationwide by Televisi Republik Indonesia (Republic of Indonesia Television (TVRI)), the only television station in the country at that time.

President Widodo Goes to South Korea for Maritime Partnership

Source: merdeka.com

Source: detik.com

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inister of Villages, Development of Under-Developed Areas and Transmigration Marwan Jafar, said on December 7 2014 that at least 5,000 villages all over Indonesia were ready to apply e-village budgeting system in 2015. “We are still preparing the system until the end of the year,” said Jafar at the launch of e-village system at the Banyuwangi regency office, East Java, on Sunday (12/7.) Jafar also confirmed that 5,000 villages outside the Java island had been prioritized for the e-village program as they had yet to have internet access.

In every regency, seven villages will be chosen as role models for e-village system application for the 67,000 villages all over the country. On e-village budget, Jafar said that the budget covered the planning to reports of application. The e-village system is expected to make it easier for The Ministry of Villages, Development of UnderDeveloped Areas and Transmigration to supervise the use of budget in villages, as those villages will be connected online to the ministry. Jafar added that the e-village system would be very necessary since each village would receive IDR 1.4 billion (US$ million) in accordance with Law no.6/2014.

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resident Joko Widodo left for Busan, South Korea, today (12/10) for the ASEAN-South Korea Summit which will be held on December 11-12 2014. “We will initiate partnerships in infrastructure and maritime. Minister of State Enterprises, Rini Suwandi, will start talks on maritime partnerships,” said Cabinet Secretary Andi Widjajanto on December 10. Widjajanto further said that only 15 people would come with President Widodo to the ASEAN-South Korea summit, including Suwandi and Minister of Forestry and Environment Siti Nurbaya Fadilah. Fadilah will initiate partnership in forestry as South Korea is known as a green economy pioneer. Also in the President entourage is Minister of State Apparatus Empowerment and

Bureaucracy Reformation Yuddy Chrisnandi, who will have talks about e-government as approved by UN, and Coordinating Minister of Economics Sofyan Djalil. Widjajanto said that Djalil would talk about sensitive issues such as Ebola and its impacts on the economy. At the summit, Indonesia will be present as a coordinating state for ASEAN and South Korea, and President Widodo will use this opportunity to strengthen the free trade between Indonesia and South Korea through comprehensive partnership agreements. President Widodo will fly back to Indonesia on December 12, and will leave straight away for the celebration of Nusantara Day in Kota Baru, South Kalimantan, which will be held on December 13.


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January 2015 ASEAN Secretariat

AEC Blueprint 4 pillars, 17 core elements, 176 priority actions

ASEAN Summit

Pillar 2

Pillar 3

Pillar 4

ASEAN Economic Community Council

Single Market & Production Base

Competitive Economic Region

Equitable Economic Development

Integration into the Global Economy

AEC Blueprint

* Competition policy

* SME development

* Free flow of services

* Consumer protection

* Initiative for ASEAN integration

* Free flow of investment

* Intellectual property rights

* Free flow of capital

* Infrastructure development

* Free flow of skilled labour

* Taxation

* Priority integration sectors

* E-commerce

* Coherent approach towards external economic relations * Enhanced participation in global supply networks

* Food, agriculture and forestry

5 + 2 core elements

...continued from pg. A1

ASEAN Trade There is the urgent need, however, to undertake the required economic reforms, adjustments and actions as stipulated in details in the AEC Blue print. Containing 4 pillars, 17 core elements and 176 priority actions. AEC Blueprint What is perhaps more known in Pillar 1 concerns the free flow of goods, services, investment, capital and skilled labour. Effective work has also to be done in the areas of strengthening ASEAN’s competitive position, equitable economic development and integration

6 core elements

2 core elements

into the global economy. Those areas will require the immediate attention of ASEAN 10 countries, including Indonesia. The bulk of work has to be done by the individual economies of South East Asia. According to the ASEAN Secretariat nearly 80% of the measures in the AEC Blueprint has been implemented. With significant progress across sectors. One can foresee that the years after the 2015 deadline will be the crucial years for the ASEAN 10 economies. Mounting pressures and challenges will arise. But also mounting

opportunities and prospects will come up. Institutional Setup Over the years ASEAN has step by step developed a rather complex organizational and institutional setup which still needs further improvements. There is among others still the need to strengthen the ASEAN Secretariat. With the ASEAN Summit as the highest policy-making authority. With their periodical meetings of the heads of state of the 10 ASEAN members. Followed by the Economic Community Council and the ASEAN Economic Ministers. And also

Committee of Permanent Representatives

ASEAN Coordinating Council

Pillar 1

* Free flow of goods

A3

2 core elements

the existence of the Committee of Permanent Representatives. It may be quite surprising for observers to find out that every single economic sector is being covered by the ASEAN bureaucracy. Not only the area of trade, investment and finance. But also the areas of energy, minerals, science- technology, transport, tourism, telecommunication and IT. Need For Public Support One of AEC‘s shortcomings concerns the need for public support. As the implementation of AEC agreements requires the understanding and confidence of the private sector. In addition

ASEAN Economic Ministers Senior Economic Officials Meeting

High Level Task Force on ASEAN Economic Integration

Sectoral Ministerial Bodies * ASEAN Free Trade Area Council * ASEAN Ministers on Energy Meeting * ASEAN Ministerial Meeting on Agriculture and Forestry * ASEAN Finance Ministers Meeting * ASEAN Investment Area Council * ASEAN Minissterial Meeting on Minerals * ASEAN Ministerial Meeting on Scienece and Tecnology * ASEAN Mekong Basin Development Cooperation * ASEAN Transport Ministers Meeting * ASEAN Telecommunication and IT Ministers Meeting * ASEAN Tourism Ministers Meeting

to the support of the general public. Which are often influenced by cynical observations of some political elites. Who are not well informed and lack the good understanding on the subject matter. As rightly explained by the ASEAN Secretariat “there is the need to develop strategies to maximize the dynamic contribution of the private sector to integration, including strong public and private sector partnerships to support the

AEC” An important asset of the Southeast Asian countries is the high growth of the middle class which numbers more than 100 million people. Who are young, better educated and to be armed with the right spirit. In addition pillar 3 of the AEC roadmap calls for the development of the SME’s. These forces together with the regions adequate resources are needed to strengthen ASEAN’s competitive strength and determination to cope with the mounting external and internal pressures. (A/S) ...to be continued

International Indonesia as The World’s Maritime Center Therefore, there is not a wonder why vegetables in Kalimantan are more expensive than in Java and even in neighboring countries like Malaysia. The absence of infrastructure in the maritime sector also causes cement price in Papua twice or three times more expensive compared to cement price in Jakarta. On the other hand, the process of becoming global maritime center needs law enforcement. The new government is determined to solve cases of fish theft by illegal foreign fisherman in Indonesian waters. President Widodo mentioned that out of 5,000 to 7,000 fishing ships in Indonesian waters, 90 per cent of them were illegal. Ironically that violation has never been brought into attention. “I would like to remind you that I want no more fish theft by illegal foreign fishermen happening in my administration. This is a message to the police corps, the Indonesian Navy, The Ministry of Fishery and Marine Affairs and local heads of administration,” said President Widodo at the celebration of Nusantara Day at Siring Laut Beach, Kotabaru, South Kalimantan, on December 13. Source: nationsonline.org

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long dwelling time which is aggravated by the daily rent fee of warehouses which can reach up to 500 per cent of its basic fee.

common purpose. The third way is, of course, the global maritime center idea is the most important part of national agenda.

It has been widely known that one of the reasons for the lack of enthusiasm in the shipping of goods is the complicated procedure of sending and picking up goods at ports. If the delivery route is not far, business owners can use land routes to deliver their items. However, if business owners have to import or export their items by shipping, they have to face

The afore-mentioned problem is one of many problems that trigger the idea of Indonesia as the world’s maritime center. Executive Director of Center of (CSIS) Rizal Sukma said on that Indonesia being the world’s maritime center can be seen in three ways. First, it has always been Indonesia’s aspiration to be the global maritime center. In this context, the maritime center agenda is like a reminder of that aspiration. Secondly, the idea of global maritime center can be seen as a doctrine which gives a sense of

“The plan of “sea tollway” development to guarantee connectivity between islands, the development of shipping and fishery industry, the building ports, the improvement of sea transportation, as well as a focus on maritime security, reflect Indonesia’s seriousness to materialize its aspiration,” said Sukma.

ne of the most attention-grabbing headlines both domestically and internationally is the idea of Indonesia as the world’s maritime center, which is the main agenda of the new government under President Joko Widodo and Vice President Jusuf Kalla.

So far, the majority of ports in Indonesia have not been able to accommodate large ships, and this results in the large logistics fee.

The policy of Minister of Fishery and Marine Affairs Susi Pudjiastuti to drown illegal foreign fishing ships, which is supported by Indonesian Navy, is a ray of hope in materializing Indonesia’s aspiration to become the global maritime center. This is also good first step to prevent further financial losses due to fish theft by illegal fishing ships, which is estimated at IDR 300 trillion (US$ 24 billion) per year. As a maritime country, Indonesia’s marine sector can reach a potential profit of IDR 3 trillion (US$ 240 billion) annually, and according to The Ministry of Fishery and Marine Affairs in this year alone the fishery sector can generate an estimated profit of

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“I would like to remind you that I want no more fish theft by illegal foreign fishermen happening in my administration. This is a message to the police corps, the Indonesian Navy, The Ministry of Fishery and Marine Affairs and local heads of administration,” said Joko Widodo, President of Indonesia

IDR 337 trillion (US$ 337 billion.) This is a lot more than the estimated worth of fishery business ten years ago, which was below IDR 50 trillion with an average rise of IDR 4.4 trillion to 7.4 trillion per year. Based on a report of McKinsey International, by 2030 the worth of business opportunities will have risen to US$ 1.8 trillion. Thus far, according to Widodo, Indonesia has suffered IDR 300 trillion in losses in marine and fishery sector. “If we don’t keep an eye on our sea wealth, we’ll continue to experience losses. This needs top stop,” he said. Apart from problems of fish theft and financial losses, another concrete step towards fulfilling the concept of Indonesia as a global maritime center is Telekom Indonesia’s (Telkom) plan to build 100 digital fishing villages in the first trimester of 2015. “Taking into consideration our marine sector business potential, we will focus on marine connectivity,” said Telkom’s Director of Enterprise and Business Service Muhammad Awaluddin on December 18 2014 at the launch of Ten Digital Fishing Villages in Muara Angke, Jakarta. With optical viber cables and broadband connection, fishermen can find out information on weather, low and high tides, daily climate and fish prices. They also will be able to access ship data and license, ship crew and the amount of ships on waters through cloud technology and applications.

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January 2015

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Infrastructure Pelindo I Prepares to Build Kuala Tanjung Port

Source: thepresidentpost.com

JAS Plans to Develop and Run Palu’s Mutiara Airport Local airport management company Jasa Angkasa Semesta (JAS) plans to take Mutiara Airport in Palu, Central Sulawesi, under its wings.

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AS, which is also known internationally as JAS Airport Services, plans to take advantage of the government’s initiative to launch partnerships with private companies to manage major infrastructure such as

airports to avoid dependence on state-owned companies. According to JAS CEO and President Director Adji Gunawan, the company stands a good chance to run Mutiara Airport since JAS also operates in neighboring cities of Makassar in South Sulawesi and Manado in North Sulawesi. “Even if another investor has gotten the green light to manage the airport, we will offer a partnership,” said Gunawan on December 3 2014.

Source: medanbisnisdaily.com

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tate-owned port management company Pelabuhan Indonesia I (Pelindo I) currently prepares to build Kuala Tanjung Port in Batubara Regency. South Sumatera. The port will be built to support the under-water tollway that is the main agenda of President Joko Widodo’s presidency. Pelindo I Business Director Syahputra Sembiring said (on what date?) that construction would begin in February 2015. According to Sembiring, although The Ministry of Transportation has yet to issue a license, Pelindo I will continue with the construction and establish a child company, Prima Multi Terminal, to help with the process.

Sembiring added that Pelindo had gained a license from The Ministry of Environment on October 1 2014 for the Kuala Tanjung Port construction. The company has also signed a partnership with Port of Rotterdam, the largest port in Europe, for the management and development of Kuala Tanjung Port on October 20 2014. Sembiring explained that the partnership with Port of Rotterdam and the establishment of Prima Multi Terminal reflected Pelindo I’s commitment to accelerate the construction of the new port, which in turn will accelerate the materialization of the under-water toll-way.


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January 2015

A5

Energy

Bionas Energi Indonesia and Makassar State University Develop Biofuel Technology M

anufacturers of non-fossil energy, Bionas Energi Indonesia (BEI) took Makassar State University to develop biofuel technologies to reduce consumption of irreplaceable energy such as petroleum. Makassar State University will help do the research on the uses of the products produced in the various fields.

"Bionas Energi Indonesia in collaboration with the Makassar State University directs jatropha farmers in the development of environmentally friendly fuels," said Rector of the Makassar State University Arismunandar

"Bionas Energi Indonesia in collaboration with the Makassar State University directs jatropha farmers in the development of environmentally friendly fuels," said Rector of the Makassar State University Arismunandar in a press release on Tuesday. "We're going to do a test first to check how much resistance the engine has and its effect on pollution. We are engaged in appropriate technology sector and it is very likely Bionas to be applied there," said Arismunandar. Present at the MOU signing were Zurina Sirojul, Bionas Group CEO, Dato Sri

Source : energitoday.com

Mohammed Jafri, Bionas Group Executive Chairman, and Vice Rector Nurdin Nonik. The vice rector agreed to provide human resources (HR) to be trained on the process of making environmentally friendly energy sources. "Fishing boats, motorcycles and

industrial machinery in the Makassar will be the main target of the trial," said Aris. Bionas itself currently has managed to combine advanced technologies applied to the additive nano, nano-emulsion and polarization using basic

ingredients of jatropha plant. The combination is believed to be able to cut the basic cost of electricity tariff by 20 percent.

transportation by land, air and marine using diesel and gasoline engines. The savings could reach 20 percent.

According to the CEO of BEI, Hendry Widjaja, a mix of these technologies can save fuel oil (BBM) in a number of means of

"This technology is an environmentally friendly technology for fruit or seed of jatropha plants and water become one of

the main components in it. Nano technology in emulsion and polarization is meant to conserve fossil fuels," said Hendry. Bionas itself, according to Hendry, believes through the latest research and development, alternative energy will be accepted by the society at large. One of the products of Nano technology in Emulsion and Polarization is Bionas M30, which consists of 70 percent oil and 30 percent of jatropha oil. M30 is claimed to be more economical, environmentally friendly and longer burning time. He admits, alternative energy from Jatropha is not new in the world, including in Indonesia. However, through a variety of researches and the latest development, they are confident that alternative energy will be accepted by the society at large. "Four years ago we actually already started in Indonesia. We have enough farm land for jatropha with the local farmers. Investment focuses on the base of production, technology transfer and training," he said.


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January 2015

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Property

Jakarta Ranks Second Favourite for Property Investment 2015

“Generally, property price in Jakarta is lower compared to that in many other Asian cities, which can potentially generate big profits from price rise in the long run,” said ULI Asia Pacific Chief Executive,John Fitzgerald.

Source: propertiniaga.com

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Real estate research center Urban Land Institute and professional service network PriceWaterHouseCooper (PWC) placed Jakarta in the second place of most favorite and prospective cities for investment in Asia Pacific in 2015 on December 5 2014. A report titled “Emerging Trends in Real Estate Asia

Pacific 2015” that was issued by ULI, Jakarta is second only to Tokyo, but above many other major cities in Asia Pacific such as Osaka, Sydney, Melbourne, Singapore, Kuala Lumpur and Beijing. “Generally, property price in Jakarta is lower compared to that in many other Asian cities, which can potentially generate big profits from price rise in the

long run,” said ULI Asia Pacific Chief Executive John Fitzgerald. However, Jakarta is still dwelling with the issues of market uncertainty, land ownership and unclear justice system, which can badly affect property business. Tokyo’s spot as the number one most favorite city for property investment is closely related to its government’s major eco-

nomic stimulus plan in which major property purchase will occur to prevent fast price hike. Another reason is the on-going loose credit that allows for more room for the property market to grow. Therefore, Tokyo’s charms do not only lie in the asset price prospects but also its low risks. Osaka is in the third place also because of its asset price

growth. Many investors are buying properties at the moment in the city which allow secondary markets to grow. Osaka’s main interesting point is the fact that many new companies open here annually so office buildings are purchased and used immediately. Sydney ranks fourth because of its vast stream of foreign funds, which signals a dynamic

economic growth. The second factor is city’s big retirement funds also create competition in property prices and last but not least is Sydneysiders’ enthusiasm for building conversion, from office buildings to housing units. Melbourne rounds up the top five most favorite cities for property investment for reasons similar to Sydney.

Property Investment Will Be Excellent In 2015 The national property industry is expected to bounce back in 2015, after experiencing many drawbacks due manly to political situation following the elections.

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he elections for House of Representatives members and eventually new president made property developers, as well as investors, to wait and see. The new government under President Joko Widodo and Vice President Jusuf Kalla is expected to bring optimism back to the property business. President Widodo’s administration has planned to build major infrastructures which include a 1,000 km toll-way, 15 new airports, 24 new ports and train railways in Java, Sumatera and Kalimantan. The new government also plans to build bus rapid transit (BRT) and MRT stations in six metropolitan cities and 17 major ones. At the same time, 47 dams, 35,000 megawatt power plants and 15 industrial areas (13 in Java and two outside Java) will be built. This will surely affect property business in a positive way, as every time a new tollway is opened there will be housing units and shopping malls opened around it. It is the same way for industrial areas, where housing units will be open to accommodate workers. Access through tollways and rapid transportation means will draw interests towards property. In 2015, it is expected that property business capitalization will grow up to eight per cent from IDR 243 trillion (US$ 19 billion) in 2014. The property investment business is still a favorite for investors, with

20.4% out of all investments in Indonesia in 2014 being in this sector. The favorite locations remain Java Island (provinces Jakarta, Banten, East Java, West Java) and Bali. Indonesia’s property sector does not only attract local investors but also overseas ones from Singapore, Japan and Hong Kong. The growth of property investment is also supported by the government’s plan to cut the bureaucracy for license. Currently, for an investor to get a license, said investor has to go through Badan Koordinasi Penanaman Modal (Investment Coordination Agency (BKPM)), then the central government, Kawasan Perdagangan Bebas dan Pelabuhan Bebas (The Free Trade and Port Agency (KPBPB), the special economy area and lastly the local government. In the future, licensing will only be done at BKPM with representatives of other licensing bureaucracy units put at the BKPM office. The government’s target to push the economic growth up to 5.8 per cent in 2015 is supported in no small part by property investments. This sector is expected to contributed 30-50 per cent to said economic growth. “In terms of Produk Domestik Bruto (Gross Domestic Products (PDB)), property investment will contribute around 30-50 per cent. It means that property investment is highly influential in PDB,” said Bidang Pengendalian Penanaman Modal (Capital Investment Control Agency (BPPM) Deputy

Source : sudiana1526.wordpress.com

Head Azhar Lubis at the “Economic Outlook 2015: Potensi Investasi Properti di Tahun Pembangunan Infrastruktur” at Hotel JS Luwansa on December 3 2014. Azhar was sure that property investment would continue growing despite clashes with the Bank of Indonesia rates which was predicted to rise up

to 7.75 per cent in 2015. At least the growth of property business can still rely on the remaining favorite locations. “The most property investments are in West Java, Jakarta, East Java, Banten. There will also be investment outside Java such as East Kalimantan. These four provinces still dominate,” said Lubis.

“Property investment is also important to open more work opportunities, and if property investment is growing well it will positively affect the people’s income,” Lubis said, emphasizing on the importance of property investment growth for the people.


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January 2015

A7

Education UNFPA Encourages Indonesia to Invest in Education

Source: liputan6.com

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Source: csr-semenindonesia.com

he United Nations Population Fund (UNFPA) encourages Indonesia to seriously invest in education if it wants to enjoy demographic benefits.

SMAN 9 Surabaya is ready to compete in Toyota Eco Youth 9 Source: republika.co.id

Education Minister: Indonesia Education in Emergency "We are in a critical condition. Do not begin to blame one another. It's our job together. We have to change, our steps must be holistic," Anies Baswedan, Minister of Education and Culture

Minister of Education and Culture Anies Baswedan said Indonesian education is in emergency situation.The issue was mentioned by Anies in a meeting with the Heads of the Provincial, District, and Municipal Education Department, in Indonesia at the Ministry of Education and Culture (Kemendikbud) building, Monday (1/12). Anies explained performance trends of Indonesia on PISA mapping from years 20002012 were stagnant. "For 12 years, the portrait has been flat, while others are fighting against the world. It is our projection into the future, we must change when we see this portrait," said Anies. Based on the data, 76 percent of Indonesian children in PISA did not reach the level two, the minimum level to get out of the category of low achievers. While children who reached the highest level were only 0.3 percent. The data also showed interest in reading children in

Indonesia was still very low. Only one of the 1,000 people in Indonesia had interest in reading, or 0.001 percent. "This stagnation should become our concern, we must change," added Anies. Other data revealed Badwater in this meeting, among others, 75 percent of Indonesia's school did not meet the minimum standards of education. Plus, the results of Indonesian teacher competency tests reached only 44.5 percent of the expected standard of 70 percent. Indonesia, he continued to say, was ranked 40th out of 42 countries in TIMSS mapping areas of scientific literacy. Position 49 out of 50 countries in the higher education quality mapping. And position 40 of the 40 countries in mapping of the learning curve. "Why is this happening to us. It's quite a burden. The fact is bitter but we must reveal it," he said.

Therefore, Anies invited all involved in education have to revolutionize education. Make big changes without blaming one another. "We are in a critical condition. Do not begin to blame one another. It's our job together. We have to change, our steps must be holistic," said Anies. Anies added that implementation of curriculum 2013 should run with patience and gradual. Curriculum change is not just oriented to change the history of education in Indonesia. "It's a big issue, wait. Do not make historical orientation. The orientation is changing our children, frankly speaking," he said. To that end, currently Anies is in the middle of forming a special evaluation team for the implementation of Curriculum 2013. A total of 11 people consisting of teachers, heads of agencies, observers, and the person in charge of Curriculum 2013 in Kemendikbud, are involved as a core team. The team prepare and discuss what are the constraints and shortcomings during the implementation of Curriculum 2013. Starting from the publication of books, materials, up to readiness of teachers. "This week only evaluate what is done in the second semester. Including implemenetasi of Curriculum 2013, and practice in the field as to what to be adjusted," he said.

“Based on a 2014 population census, developing countries have to seriously invest in education to gain high economic growth,” said UNFPA representative in Indonesia

Jose Ferraris at the launch of State of The World Population Report 2014 in Jakarta on November 28 2014. According to Ferraris, a state can enjoy demographic benefits if there are more people at productive age than those at dependent age. Therefore, it is necessary to invest in education to make the most of young people’s potential, which will result in social and economic

growth. “By investing in education, a state can enjoy demographic bonus of productive and well-educated youth which helps eradicate poverty and improve standard of living,” said Ferraris. State of The World Population Report 2014 shows, amongst others, that demographic transition has occurred in 60 countries which have invested in youth development.

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Pictorial Event Palu Mayor: Zero Poverty in Palu is Possible The Palu City Council held an event to promote the Central Sulawesi city and facilitate a gathering for the Palu community in Jakarta on Saturday, December 13 2014. The event was themed “Palu: Past, Present, Future” and was attended by a number of Palu business owners. Also in attendance was Palu mayor Rusdy Mastura who delivered a speech on how it was possible to fully eradicate poverty in Palu.

Official Launching

Opening Speech by Mayor of Palu

Speech by Central Sulawesi Regional Secretary

Prayers

Otte Abadi

Onion chips from Palu City

Central Sulawesi traditional dance

The event was packed with visitors

Ray Sahetapy, actor from Donggala attended the event

Central Sulawesi traditional dance

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Getting To Know The City of Palu Closer

As one of the driest cities in the Indonesian with rainfall less than 1000 mm per year, the city of Palu has many nicknames such as the Bay City, the Valley City, the River City or the more often we hear, the City of Five Dimensions. It deals with five landscapes that adorn this city.

Palu city's development so far is implemented by considering the various results that have been achieved, the potential of the area, the people's aspirations, the external environment as well as future perspectives. Philosophically, Palu City landscape is interpreted in the metaphor of custom home division of space in Kaili, Sou King, which consists of three parts, namely Gandaria (front porch), Tatangana (space the middle), and Poavua (rear space). The coastal area is defined as the front porch, urban residential areas as the central part of space, and conservation areas or green belt is placed as the back of the room. The philosophy is adopted by the Government of Palu in Local Regulation No.16 of 2011 on Spatial Planning of Palu Year 2010-2030. The capital of Central Sulawesi province has 8 districts, namely the District of West Palu, the District of South Palu, the District of Northern Palu, the District East Palu, the District of Ulujadi, the District of Tatanga, the District of Tawaeli, and the District of Mantikulore to cover 45 villages. To the north, the city of Palu is bordered by the District and Sub-District Banawa Tawaili (Donggala Regency and Palu Bay), to the south by the District of Marawola and Sigi Biromaru, to the west by District of Banawa and Marawola, and to the east by the District Tawaili and Parigi. The geographical position of the city of Palu is open and can be reached by land, sea, and air; it is possible to be one of the central economy of Sulawesi through integrated regional development of Sulawesi Island. Simultaneously, the geographical position of the city of Palu provides better access opportunities to a number of national, strategic area and to the Asia Pacific regions. Palu city is known to have a number of excellent commodities such as rattan, fried onions, chocolate, seaweed, batik bomba, ebony wood, pottery, gold, and Virgin Coconut Oil. When the leadership of Palu was under Rusdy Mastura, the city started to make waves with a series of achievements. Starting from Swasti Saba Padapa in 2007, an award as a healthy city, awarded by the Ministry of Health,

Medal of Wira Kary (successfully build industry Economic Democracy) in 2009 awarded by the President, Upakarti for Concern in the Industrial Sector in 2009, awarded by the President, the top awardBest efforts in improving the environmental quality of urban life in 2013 by the Minister Of Environment, Local Government Innovative Award in 2013 by the Minister of Home Affairs, Adiupaya Puritama Award 2014 by the Minister of Housing RI and a series of other prestigious awards. Dynamic development of the city of Palu in recent years has been assessed as rapid. This cannot be separated from the figure of the Mayor, Rusdy Mastura, called a visionary leader. Rusdy admits he has so many dreams about the city of Palu, including urban development strategy. Under the leadership of Rusdy KotaPalu also managed to build a landmark, the Palu Bridge IV, known also as the Bridge Ponulele. Not only that, Rusdy also introduced the beauty of the citu of Palu by maximizing the potential of Palu Bay. "At first, almost all the coastal territory was a slum. The city of Palu without beach is like a girl without a face. Formerly, there was no connecting road but now we have built a bridge and the face the city of Palu has already started to appear, the girl begins to show her face. Palu city is one of the prettiest towns because it has elements of the five dimensions, not to mention our extensive area that comes near to 400km². In Sulawesi, Palu City is the most extensive city and we have the most beautiful bridge in the island, "said Mayor Rusdy Mastura. Meanwhile, on one occasion Deputy Mayor Andi Mulhanan Tombolotutu said the city of Palu is a unique area. "First, topographically, Palu City has five dimensions. Second, since a long time ago, this city has been inhabited by diverse ethnics considering Central Sulawesi is the recipient of the largest Indonesian transmigrants. Related to this, the future of Palu has two challenges: first, the potential of human resources and commodities which end up in this city. Second, in line with the rapid dynamics Palu city many people will come to this city, because here everything is available. It will be the burden of the city, but

Source : thepresidentpost.com

also can be useful for the development of the city of Palu in the future, "said Deputy Mayor Andy Mulhanan Tombolotutu Palu.

processing zones and industrial zones. Palu city has also been designated as Center for Integrated Rattan Industry Development.

Based on the research of the Ministry of Industry, the city of Palu has had the five regional core competencies, namely cocoa, rattan, integrated coconut, processed foods, and seaweed. Not long ago, the central government through Government Regulation No. 31 of 2014 also has established a Special Economic Zone (SEZ) of Palu. SEZ of Palu that is located in the northern part of the city of Palu will conduct business in the region over an area of 1,500 hectares.

By 2020-2025, Palu SEZ is expected to be able to absorb 200,000 workers with an investment of Rp 45 trillion. About 40 companies from both within and outside the country, has expressed interest to invest in the Palu SEZ. Currently there have been three business units that have opened land, namely those in the nickel smelter and its derivatives, rubber industry, and the fishing industry. The development of supporting infrastructure Palu SEZ has been started in 2014, and is targeted to be completed during the next three years. The infrastructure includes toll roads, electricity and water installations, as well as the expansion of the port and the airport.

Of the seven SEZs in Indonesia, Palu SEZ can be called the most complete. Because Palu SEZ has three zones, namely logistics zones, export


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January 2015

Special Report

Arief Yahya’s Moves in Hunting 20 Million of Foreign Visitors biggest contributors of tourists visiting in Indonesia, according to Pitana, is a tremendous first step. So far, said Pitana, the ministry has sought to convince the ministries related to free visas to tourists from the five countries, but has not been successful. If the visa application was allowed by Ministry of Law and Human Rights in accordance with existing laws, said Pitana, then it would be the beginning of an incredible job.

William F. Theobald, the author of the book 'Global Tourism' explained the word tourism which at present refers to the tourism industry is actually a word derived from the Latin 'tornare' and Greek 'tornos' which means a circle or a movement around a central point or axis. Later the word describes a circle implying a person’s coming back to his starting point, so a tour is interpreted as commuting. And those who take a trip like this can be called a tourist. But do not take for granted about the to-and-fro movement or the turn-round. The reason is that such a movement of the tourists could drive the economy of a region or even a country. Let’s say Hawaii, one of the states of the United States located in Oceania, Pacific Ocean, is a state in the United States that relies heavily on the tourism industry as one of the back bones of the economy. Based on the Annual Report 2012, the tourism industry was the provider for the largest portion of the Gross Domestic Product of the state, which was equal to 21% of the total economy. The tourists who came there had been spending funds amounting to US $ 14 billion, according to the Tourism Authority Hawaii. Likewise, Indonesia. The country with the fourth largest population in the world also relies on the tourism industry as one of the Filler Cash and the State Budget. It is not too special if the tourism industry comes to be the largest contributor of foreign exchange. Indonesia does have tremendous potential for this industry. Just look at the diversity of cultures with very exotic customs. Not to mention the geographical area that offers landscape of thousands of islands and very long coastlines. City tour in a number of areas is no less interesting, with a carrying capacity of the diversity of culinary and hospitality of its people. Refering to the information from the Ministry of Tourism, the growth of the tourism industry was one sector that was growing beyond national economic growth this year. In the first half of 2014 for example, the growth of this industry reached 6.8%, compared with the national economic growth that reached 5.7%. In the past year, the tourism sector accounted for Rp347 billion to the gross domestic product. This sector contributed directly to Gross Domestic Product (GDP) to 23% of the total State Budget 2013. In the same year, employment in this sector totaled 10.18 million people or 8.9% of the total number of workers. Tourism sector's contribution to total exports of goods and services also rose from 10% to 17%. While the number of foreign tourists in the period January-July 2014 increased 9.5% or twice the growth of the world around 4% -5%. Looking at the fact, the contribution of tourism to the state revenue, it is not too much if a number of countries with good tourism potential, including Indonesia, pay special attention to this sector. Even the tourism sector is often developed in parallel with the

direction of economic development and infrastructure. Moreover, it is noted that that in the last eight years, the highest tourism growth in the world is located in Southeast Asia, so the role of the tourism sector to the economy of the countries in the region becomes important. As disclosed by Nirwandar, Vice-Minister of Tourism and Creative Economy of Marie Elka Pangestu era, in 2013 the flow of tourists to ASEAN countries increased by 12% or 92.7 million people, while the global growth was only 5%. In the era of the new government of President Joko Widodo and Vice President Jusuf Kalla, the attention to the tourism industry was of no less magnitude than the other sectors. Even in the structure of the Work Cabinet, thereby cabinet of President Joko Widodo, a special minister has been appointed to deal specifically with the tourism sector. Unlike the previous era, the tourism sector was often combined with other sectors such as postal and telecommunications industry or even culture. In the era of the leadership of President Susilo Bambang Yudhoyono, the tourism sector was in tandem with creative economy sector handled by a minister at the time, Marie Elka Pangestu. For Sapta Nirwandar, changing the nomenclature of the Ministry of Tourism indicates Indonesia is confident with tourism, and will be encouraged to be able to grow better. Arief Yahya, former Director of PT Telekomunikasi Indonesia Tbk is believed to address this equally strategic sector. President Jokowi ever commented that Arief Yahya CEO of PT Telkom Indonesia was professional and qualified in marketing. With this background the tourism sector is expected to be even more shiny in his hand. Moments after being introduced by the President in the presence of media, Arief Yahya revealed that the Indonesian tourism sector should be able to equal or even compete with Thailand and Malaysia, related to efforts to increase tourist arrivals. "Visits to Indonesia should increase... for the first phase,10 million tourists, "Arief told reporters at the presidential office, (27/10). One effort is through tourism management especially marine tourism which is still lacking to date. " Tourism in marine sector has not been explored. Despite the fact that we are rich in marine sector. Now it is rare, on the contrary, foreigners explore, even exploit our marine tourism, "he said. Next, during the official position handover from Marie Elka Pangestu in Jakarta, Arief Yahya mentioned the needs for a new breakthrough in the world of marketing, using both conventional and digital technology so that Indonesia's

In agreement with Arief Yahya, he also suggests that efforts to increase the number of tourist visits does not necessarily have to make every area a tourist attraction. For him, every region has its strengths and advantages of each, so as not to be forced into a new tourist area.

Source : marketeers.co.id

tourism should have international standards in its tourism development. "All we have to do is build four things, namely first infrastructure, second ICT (Information and Communication Technologies), and third health and hygyne," he said. With digital breakthrough is expected that Indonesia can be boosted as a leading tourism destination of high competitiveness. The era of digital technology is very economical for the spread of tourism promotion with its rapid spread and low cost. He also mentioned that there should be a mapping of 10, 20, 50 and 100 of the top destinations to attract 20 million tourist visits in 2019, or a two-fold greater than the last position in 2014 which was estimated at 9.5 million tourists. The government is targeting the sheer number of tourist arrivals to 20 million people by 2019. Efforts such as promotion, accessibility and connectivity from source countries of foreign tourists to the leading destinations in the entire country are also required. Moreover, accessibility is needed in order to encourage foreign tourists to visit sea cruise ships and yachts that are in line with the government's program to strengthen the marine highway that connects the islands of Indonesia. Arief Yahya said, during the last three years of tourism growth was on average of 8%. In the future this number will be driven up to 12% so that the foreign exchange earnings are expected to increase significantly. By the end of 2014, of 9.5 million foreign tourists visit the tourism foreign exchange earnings amounted to US$ 11 billion, by 2019 of 20 million foreign tourist visits foreign exchange earnings is estimated at US$ 24 billion or equivalent to Rp 240 trillion. In detail, efforts to increase the number of tourists will be done by exempting visas for tourists from five countries, namely Russia, China, Japan, South Korea and Australia. In between 'Joint Coordination Meeting with Coordinating Ministry for maritime Regarding Visitor Visa Extension and Licensing Tour Ships', in early

November, Arief said that for the visa exemption to the five countries, there will be feed back in the form of 400 thousand - 500 thousand tourists visit and tourism foreign exchange gain up to USD 11.3 million (approximately IDR 136.8 billion). Further, Arief Yahya said that for the development of marine tourism Tourism Ministry will double the level of cruise ship visits or yachts from around 750 visits this year to 1,500 visits in the next year. For that it would facilitate entry or Clearance Approval for Indonesian Territory (CAIT) by opening the online licensing. Later will be made one stop online service which is under the auspices of the Ministry of Finance, Ministry of Transportation and the military. He hoped that if the licensing is facilitated online, foreign tourists can apply for licensing anywhere and more efficient. Travelers who vacation with a yacht, said Arief, are of a top-class group who are not concerned with the cost, but put the high standard of service. "We have agreed to facilitate this CAIT by making it online. In the future, yachts coming into Indonesia will be easier, cheaper, and transparent, "he said in Batavia Marina, Ancol, North Jakarta, (13/11). He calculates, one yacht stopping in the marina will provide an income of US $ 2,000 per month. This revenue will certainly drive the economy of the area in which the vessel rests, plus the increase in the number of tourists visiting attractions around. Both of these policies are expected to be effective from January 2015. And to improve coordination across ministries and agencies, Arief Yahya explained that they would coordinate with the Navy to optimize the use of ships. "Quick wins in increasing the marine tourism is by having ship procurement and providing substantial funds, so for a while we will meet the Navy Commander suggesting that the existing routes be optimized," he said as reported by the media in the capital late last October. Meanwhile, talking about the new tourist destinations that often become one way the authority extends to raise revenue from the tourism

sector, Arief Yahya precisely was of the opinion that this time the government will focus on three areas that have been the entrance of foreign tourists. So far there are three regions, namely Jakarta, Bali and Batam that have always been the entrance of foreign tourists visit. According to Arief while visiting Banyuwangi recently, as many as 40% of foreign tourists who come to Indonesia chose to go through Bali. While 30% chose to go through Jakarta, the remaining 25% coming through Batam, Riau Province. Arief said the Tourism Ministry will boost promotion, either through digital television and social media. However, the promotion will continue to make Bali, Jakarta, Batam as icons, by including attractions in the surrounding area. He mentioned an example of Banyuwangi which will be attached to Bali because of its adjacent position. By embedding Banyuwangi to Bali, he hopes difficulty in promoting the region will be much reduced. The reason, said Arief, it is difficult to sell a destination that is less known. Meanwhile in different occasions, I Gde Pitana, Head of Tourism Resources Development of Tourism Ministry revealed, the target of 20 million tourists in 2019 is not easy. Currently a number of obstacles still exist such as the accessibility of the area from origin of foreign tourists to Indonesia, as well as transportation infrastructure in the country is still considered low. This is related to the tourism competitiveness index that was launched by the World Economic Forum, which identified the weak infrastructure in Indonesia. Things that are judged still hampering are the application of a visit visa. Including against a number of countries whose citizens are dominant enough to make Indonesia as a tourist destination for them. "Say for example Malaysia, freeing visa for 154 countries. While Indonesia only 15 countries (the free visas, ed). Singapore has only 20% of the countries that require a visa. The rest are visa-free, "said Pitana. About the government's plan to free visas for residents or tourists from five countries, the

He said the government should focus on developing a number of areas that are considered strategic for the development of tourism in the next five years. When asked how many areas will be developed as a tourist destination, Pitana said that number was still under discussion. Obviously, the area must have strategic criteria such as size of the tourists who come to the region. Next is sustainability, where the area is declared as a tourist area to be developed if the region continues to show strong growth potential in the future. The third, said Pitana is spread, where tourists who come not only from one country alone. "Meaning the country origin of the tourists? If only from one country, then it’s not right. The tourists came there just to visit relatives, the benefits to the local society do not exist, meaning its spread is not good, "he said. In contrast to Tourism Minister and Head of Tourism Ministry Resources Development, Chairman of the Central Board (DPP) Association of the Indonesian Tours and Travel Agencies (Asita) Asnawi Bahar expressed the need for new tourist destinations for the sake capturing a larger number of tourists. A number of new destinations by ASITA worth promoting to tourists both foreign and domestic, according to Asnawi, of which is Raja Ampat in Papua, Wakatobi, West Java with a number of tourist areas, Yogyakarta, Mataram, Mentawai and Bukit Tinggi. Some regions also need to be more vigorously promoted again in order to recover popularity like Bunaken in North Sulawesi, Tana Toraja in South Sulawesi, including the capital city of Jakarta. Determination of new destinations is thought to be based on the availability of what the tourists need, of which the term is 'tourism spirit'. "When we come to the place, there should be peace there, there should be a kind of tourism euphoria. Just like the visit to Bali for example," he said. However, it requires that the focus of the program, supported by the local governments in the region. According to him, the policy made at the central level cannot be achieved without coordination and communication with the local government. Other requirements, said Asnawi, of course, is the promotion abroad and hopes there is financial support from the government.


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January 2015

B3

Special Report

Victor Irawan: "We Are Able To Move More Nimbly" the end, the developers have to raise the price of the unit to be built. According to the Commissioner of PT Priority Land Indonesia, Victor Irawan, the rise of fuel prices does not necessarily make Priorities Land Indonesia immediately raise the price of its property unit.

The holding of legislative elections and the direct presidential election this year, coupled with the rise in the price of fuel oil (BBM) inevitably has given effect on the entire industry, not to mention the property sector.

T

he political year has made a lot of businesses put a halt to expansion, and the investors wait rather than do the shopping action. The increase in fuel prices pushed up the prices of building materials and is likely to be followed by a rise in the price of labor. The cost of a project swells. In

Victor even saw the revocation of fuel subsidy by the government will help drive growth in the property sector, because the subsidy will be transferred to the development of infrastructure that is needed in the property sector. "So not all of the impacts of rising fuel prices is bad, just not a lot of people look at it from this angle," said Victor. According to Victor, the property business prospects this year, unlike in 2012 the growth could reach 30% -40%, which could be said to be a booming business.--this year the business will still experience growth, but only between 15% -20% per year. The condition is still in a good rate because it is still above the level of interest rates on deposits. "The impact of rising fuel prices will have an impact on the price

of raw materials. In general, the increase in fuel price may affect around 15% -20% "he added. Fuel prices rose by no means bad for the property. According to him, it may be useful to improve the infrastructure, will help the property industry as well in the end. "For us it is not too influential. Because we have since long ago been doing calculations on unexpected costs, including the oil price hikes. Property industry players, I suppose, will not directly raise prices. Too risky. Investors do not want to invest too large in the political situation as it is now. So it’s just natural if there is a slowdown,"said Victor. The rise of fuel prices, the election of legislative and the presidential election are quite influential but not too big. What is influential is the tightening of Bank Indonesia on money supply, the restrictions on the minimum down payment, for developers who are working with the bank that will have an effect. The consumers are not impacted on because they not related to the bank in sales. So the consumers are directly related to the developers, including for payment. Source : propertynbank.com


B4

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January 2015

Business PT Telekomunikasi Indonesia Tbk (Telkom) this time realizes one of the agenda to focus on Startup business lines. This is reasonable because the interest of the community towards products that carry the Startup of communication interactive update is increasing. To that end, Telkom is trying to build Startup business created by the young people of the nation to be enjoyed by the Indonesian telecommunication community. Along with these developments, on the other hand, some service providers have complained about the existence of a startup business that become a kind of parasite for their income. It is reasonable, for startup businesses, such as search engines, social media even messenger applications have profited from the operator by utilizing the infrastructure that has been built by the service providers. "On such facts, we will strive to build a healthy ecosystem in the form of cooperating with startup businessplayers or OTT (Over The Top) company in order to create a good synergy without any negative perceptions. I have to admit when the OTT applications

Telkom Serious To Build Startup in Indonesia Source: sekartelkom-indonesia.org

users experiencing slow access, they blame the network provider (carrier) but if the performance is good then the compliments go to OTT providers.

Director of Innovation and Strategic Portfolio PT Telkom when met on the sidelines of the CEO Forum held at the Hotel Bumi, Surabaya, Saturday (13/12).

To that end, in addition to cooperating with them, we also want to build a startup business in Indonesia by involving talented youth in Indonesia, "said Indra Utoyo,

Indra also added, to realize the Startup business in Indonesia optimally, he claimed to maximize broadband and access to submarine cables owned by Telkom. In fact, for

this Startup business Telkom invest approximately USD. 90 billion over three years for incubation period, and there is still another budget. Because when it comes to investment, it definitely requires a breakdown of long-term investments. "We have also held some sort of search of talent and potential related with Startup business that we are building. We've

gathered approximately a thousand participants throughout Indonesia and managed to capture 30 works of innovation. And Telkom is ready to facilitate them both in terms of data access, social media, e-money and so forth, "said Indra. Telkom presently already own Digital Innovations Lounge in 20 cities throughout Indonesia. In 2015, Telkom delegates

Telkomsel to develop broadband mobile technology directed to optimization of the device, and it allocates 30 percent of the total investment budget of Telkom next year. Telkom Group is the only state-owned telecommunications enterprise as well as telecommunications and network service providers with a complete range of telecommunications.

Multifinance Sets High Target On Sharia Business "As of November 2014 our Islamic financing has been around Rp 1.2 trillion," Director of Adira Finance, Willy S Dharma

Source: bloombergindonesia.tv

S

haria-compliant finance business is forecast to offer bright prospects for next year. Islamic finance business is swooping down after adjustment policy of down-payment for financing motor vehicles that it has come to the same with a conventional loan. However, Director of Adira Finance, Willy S Dharma said, the market began to adjust to these conditions. In fact, Islamic finance business Adira Finance jumped higher than last year. Throughout 2014, he estimated, Adira sharia finance portfolio to reach Rp 1.5 trillion. This figure was well above last year's Rp 600 billion. Willy is sure this positive trend will continue next year. In 2015, he predicts, distribution Adira Finance Islamic finance could reach Rp 2.5 trillion, or about 66% higher than this year's Source: syariah.bisnis.com

projection. "As of November 2014 our Islamic financing has been around Rp 1.2 trillion," he said. A significant increase in the Islamic finance business, according to Willy, is a result of improving economic conditions in the region which is the basis of sharia market. Including people who were once customers of Adira Finance for motorcycle loans. With the economy increases, many customers are asking again for Islamic finance products for four-wheeled vehicles. As a result the value of Islamic finance Adira also increases. Willy did admit finance industry in the next year, including sharia segment still has a big challenge. Among the reasons is the growth in demand for motor vehicles in the next year which

is expected to remain relatively moderate ie in the range of 5% -10%. Another large market opportunity is also used by Citifin Multi Finance Sharia. The finance companies will work on Islamic finance in the segment of the lease that has not been maximized. In addition, the Company Secretary of Citifin, Yulian Ma'mun said, market penetration will also be done by getting closer to consumers through a network reinforcement. "We plan to open at least two new branches next year," he said. With this strategy, coupled with the support of economic conditions that is expected to improve, Yulian is optimistic, lending next year could be more than doubled compared to the target of 2014. During this year, Citifin set a target of Rp 265 billion in new loans.


www.thepresidentpost.com

January 2015

B5

Golf

The Third Kagum Golf Championship in Bandung

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his tournament is our annual social event. This event, where industry professionals can gather and catch up with one another, is open for public and also serves to raise funds for education causes,” said Universal Holiday MICE and Golf Manager Erwin Syaifuddin on Friday, December 26 2014. Kagum Golf Championship was held on December 26 2014 at Bandung Gahana Golf & Resort, Jatinangor, Bandung, West Java. This was the third tournament for Kagum Golf, which was held in partnership with Universal Holiday and Bank DKI, and amongst its participants were Kagum Group board of directors, tourism industry professionals, local and international golf association members or enthusiasts, as well as costumers of Kagum Group hotels.

Source : sosok.kompasiana.com

The tournament fee was IDR 2,000,000 (US$ 200) which included 18 holes of Kagum Golf Championship, golf equipments, free one-year membership, gala dinner and opportunity to win a lucky draw. There were several categories in the tournament, such as Best Good Overall and Longest Drive. “The prizes for winners include return tickets for routes Bandung-Bali, Bandung-

Medan, Jakarta-Yogyakarta and Jakarta-Semarang. There are also hotel vouchers, electronic goods, spring beds and one grand prize which is a motorcycle,” said Syarifuddin. However, those were not the only prizes as prizes for hole in one winners were even more grand: one Mistsubishi Pajero Sport Dakkar, one Mitsubishi Outlander Sport, one apartment unit in Bandung, a golf package in Dubai and cash worth IDR 100 million (US$ 1 million.) Unfortunately, no participant won hole in one. It was raining in Bandung on tournament day, but it did not reduce the enthusiasm of the participants, the youngest of whom was only 12 years old. On next year’s golf tournament, Syarifuddin said that Universal Holiday and Kagum Group were planning to hold it in Bali.


B6

www.thepresidentpos.com

January 2015

Travel

Tanjung Lesung, Paradise on The West Coast

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Indonesia has a lot of gorgeous beaches, famous or not. One of those unknown beaches in Indonesia is one called called Tanjung Lesung, to the west of Pandeglang, in the Tanjung Raya village in the district of Panimbang, Banten Province. Tanjung Lesung is a Kawasan Ekonomi Khusus (KEK (Special Business Area)) for Tourism in Banten. To increase the comfort and safety of holiday goers, Banten West Java Tourism as management of Tanjung Lesung has handed a onehectare land to the Banten Police to build a Panimbang police station in Tanjung Lesung. The name “Tanjung Lesung”, according to the locals, is given due to the shape of the beach which looks like a paddy pounder.

A trip to Tanjung Lesung usually takes about 3.5 hours, as it is around 180 km from Jakarta’s business district of Semanggi. The coastal line, which is 15 km long, gives enough room for visitors to do fun activities, such as sunbathing, building sand castles or doing some sports. As it is still clean and unexplored, Tanjung Lesung offers beautiful white sand and calm waves that allow to swim, jetski, snorkel, sail and even fish. Tanjung Lesung is an ideal place for couples that would like to have a pre-wedding photo session, wedding or honeymoon. Couples can spend time walking along the beach accompanied by the sound of the waves, which will leave an everlasting memory. Tanjung Lesung is also perfect for family vacation. Your

children will love swimming in the sea and playing with the white sand, and you can capture their happiness on camera, making it a moment they will remember forever. For nature lovers, you can enjoy the natural richness of Tanjung Lesung by diving, exploring the beauty of coral reefs, jelly fish and many other kinds of fish. You can also learn to transplant coral reefs in a conservation center located in the nearby island called Liwungan. Other facilities you can find at Tanjung Lesung beach include information centers, parking lots, banana boats, glass bottom boats, fishing pools, park, children’s play areas, bicycle parks, as well as mini golf kayak and snorkel facilities. There are other facilities that are currently at the development stage, such as a theme park and Baduy Village.

Source : thepresidentpost.com

Automotive Toyota Racing Wins 2014 FIA World Endurance Championship (WEC)

Source: thepresidentpostindonesia.com

Source: toyotahybridracing.com

Toyota Motor Corporation is a Japanese automotive manufacturer that headquartered in Toyota, Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of November 2014, is the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen Group and General Motors. In July of that year, the company reported the production of its 200-millionth vehicle. Toyota is the world's first automobile manufacturer to produce more than 10 million vehicles per year. It did so in 2012 according to OICA, and in 2013 according to company data. As of July 2014, Toyota was the largest listed company in Japan by market capitalization and by revenue. Toyota Racing has won the 2014 Federation Internationale d’Automobile (FIA) World Endurance Championship (WEC) in two categories, Manufacturer and Driver. Toyota Racing gained the awards after a series of races,

including the Le Mans 24 Hours in Sao Paulo, Brazil, on December 1 2014. WEC is one of five main automotive competitions held by FIA. Toyota Racing first participated in WEC in 2012, facing great competition from Audi and Porsche. WEC was the sixth competition that Toyota won in 2014, having previously won five other competitions out of eight that Toyota participated this year. Toyota launched its first hybrid car, Prius, in 1997. It was a breakthrough as Prius was known for its combination of minimum petrol consumption and high power. Since the launch of Prius, Toyota has continued to develop low petrol consumption yet high-powered cars. To prepare for WEC, Toyota Hybrid System Racing (THS-R) has been developed further for racing purposes in Japan and are put in racing cars. The THS-R technology is in accordance with Toyota’s mission to be ahead of other car makers.

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The Role of IIBT and INAPA 2015 in Encouraging The Growth of National Caroserie and Automotive Component Industry

The special exhibition for busses, trucks, other trade vehicles and everything else in the automotive industry, a joint venture of Indonesia International Auto Parts Accessories Equip Exhibition (INAPA) and Indonesia International Bus, Truck Heavy Duty Vehicle and Equipment Exhibition (IIBT), will be held at JIExpo Hall, Central Jakarta, on March 18-21 2015. This exhibition boasts participants from 21 countries and is expected to attract 35,000 visitors who work in the automotive industry. INAPA has been acknowledged as the most influential automotive exhibition in Southeast Asia and served as a reference for Original Equipment Manufacturer (OEM) and after-market sales. IIBT has also been acknowledged as an important automotive exhibition which has partnerships with The Indonesia Caroserie Association (ASKARINDO.)

The exhibition, which will be called “INAPA and IIBT’s Role to Encourage the Growth of The Automotive Component and Caroserie Industries”, is expected to strengthen the industries of caroserie and automotive components in Indonesia. This is the seventh exhibition for INAPA, and this year INAPA has seven new sections: 1. Automotive Welding & Molding 2. Automotive Coating 3. Automotive Green Products 4. Automotive Equipment & Tool These new sections have been created to make it easier for industry professional visitors to find their automotive and caroserie needs. Other than to encourage the growth of Indonesian automotive component and caroserie industries, INAPA and IIBT 2015 also aim to create more business opportunities and expand automotive and caroserie market in Indonesia.


www.thepresidentpost.com

January 2015

B7

Health

UI Faculty of Health Holds Health Research Expo U

University of Indonesia (UI) Faculty of Health held an exhibition for health research results in the UI Faculty of Health building in Central Jakarta on Thursday (12/4/2014) and Friday (12/5/2014.) The expo featured 15 clusters of UI Faculty of Health research center, five private and

state-owned research centers and Badan Kependudukan dan Keluarga Berencana Nasional (National Demographic and Family Planning Agency (BKKBN)) as a representative for government institutions. The 15 clusters of UI Faculty of Health research center included human genetics, human cancer, drug development,

medical technology, virology and pathobiological cancer. UI Faculty of Health Dean Ratna Sitompul said on Thursday (12/4) that this expo was held in the hope that the university would improve health partnerships with the government, health industry and the general public.This expo was also expected to

further motive health researchers to give better and more useful results. Sitompul said that the expo was inspired by the people’s lack of awareness of important health issues, and added that right now the faculty was working on health breakthroughs such as stem cell therapy for those paralyzed due to medula

spinalis and tele-medicine in ultrasonography to reduce the rate of women dying in childbirth. In 2013 alone, 120 articles on UI Faculty of Health were published in local and international health journals, and to continue improving the quality of its health research the faculty is currently building Indonesian

Source : suara.com

Medical Research Institute (IMRI) which will start operating in 2016. As part of a Research University, UI Faculty of Health set its vision to be the Center of Excellent for public health education in Indonesia and to be one of the best public health educations in Asia through enhancing research, education, and consulting services.

Project HOPE Founded in 1958, Project HOPE (Health Opportunities for People Everywhere) is dedicated to providing lasting solutions to health problems with the mission of helping people to help themselves. Identifiable to many by the SS HOPE, the world’s first peacetime hospital ship, Project HOPE now provides medical training and health education, and conducts humanitarian assistance programs in more than 30 countries. Today, Project HOPE’s efforts in Indonesia continue to focus on improving the health of women and children. Through an innovative new program called HealthWorks, Project HOPE is working with factory managers and suppliers to sustainably promote health and wellness among women factory workers in Indonesia. Source: wikimedia.org

“HealthWorks is focusing on issues that affect maternal mortality and include anemia testing and treatment, increasing the quality of and access to maternal and reproductive health services available to women within the factories,” said Nasaruddin Sheldon, M.D., Project HOPE’s Country Director for Indonesia. “We’re offering health education sessions on topics such as antenatal and postnatal care, preparation for delivery, family planning, nutrition, and basic hygiene and disease prevention. A key component of the program is building the capacity of the health staff employed by the factories, so that the program can be sustained over the long term,” said Dr. Sheldon.



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