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

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March 2013 Vol. 2 No. 3

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PROFILE

INFRASTRUCTURE

– Page A3

The MPA Master Plan covers 45 infrastructure projects that are targeted to be completed in 2020. Of the total projects, the government and JICA has set 18 fast track projects to have their construction works undertaken no later than 2014. – Page B4

Titus Leber: Borobudur Multimedia and Interactive Project Ready to Astonish the World

IDR 20,000

CULTURE

18 MPA Projects Accelerated by 2014

Javanese Princess Murtiyah Gets Fukoka Prize for Preserving Culture – Page C5

Jokowi, Top Businessmen Set To Take on Jakarta’s Problems The President Post/Rians Rivco

JAKARTA (TPP) – Jakarta Governor Joko Widodo (Jokowi) welcomes Jakartabased business tycoons who have offered to help him in seeking solutions to the city’s chronic problems.

If the monorail, Mass Rapid Transit [MRT] and Bus Rapid Transit [BRT] systems were all up and running, there would be more motorists shifting to public transportation.”

n a discussion on Jakarta’s problems with several members of Indonesia’s A-List of millionaires at the President Executive Club (PEC), Batavia Tower, last month, Jokowi said: “I visited numerous slum areas to better understand the problems here, everything seemed too complicated.” “For example, all the banks along Jakarta’s 13 rivers are occupied by squatters. There are serious socioeconomic disparities in this city. The number of impoverished people in Jakarta exceed 40% of its total population of around 10 million.” Some of the major problems of Jakarta, as Jokowi sees them, and the solutions that are underway: • Street vendors – The number reaches nearly 80,000, scattered over sidewalks, streets and public space. “We have put in order street vendors in Sunda Kelapa, Central Jakarta, but we can’t afford to distribute carts for free anymore as this may encourage many street vendors from the regions to come to Jakarta. We’re still doing data collecting and will draw a line on the number of street vendors,” said Jokowi. • Traditional markets —The administration currently oversees 153 traditional markets and 20 relocation sites for street vendors, but only 15% of the markets have been wellmanaged.

Joko Widodo Jakarta Governor

gested that Jakarta do the same method and that regulations be eased. Boenjamin Setiawan, cofounder of Indonesia’s largest pharmaceutical company, the Kalbe Farma Group, said: “We want to help as education and health are important to improve the quality of our human resources. I encourage the administration to use the private-public partnership [PPP] scheme to improve healthcare facilities in the city.” “Building a city is like building a product, a brand, just like Paris that is well-known as a fashion capital,” Jokowi said.

Jakarta Governor in a discussion on Jakarta’s problems with several members of Indonesia’s A-List of millionaires at the President Executive Club (PEC), Batavia Tower, last month.

• Traffic jams – Previous administrations lacked focus in resolving the problem. Jokowi blamed his predecessors for failing to make the development of public transportation systems their top priority. The blueprint for a monorail has been in place since 14 years ago, while that of the MRT 24 years ago. “I really don’t know why nothing has been done so far,” he said. “But two documents are now being prepared, and after I approve them they can both start. MRT will be finished by 2017, the monorail in two years’s time. Jokowi said

that his predecessors failed to make the development of public transportation systems their top priority. “If the monorail, Mass Rapid Transit [MRT] and Bus Rapid Transit [BRT] systems were all up and running, there would be more motorists shifting to public transportation.” • Floods – Have occured since 1932 but have been tackled half-heartedly until now. Jokowi said it was a “blessing” that he experienced floods in the city as it allowed him to know the inundated locations and why they happened. “Jakarta’s dams and floodgates

are poorly maintained,” he noted. The city plans to build 16m-diameter tunnels 4060 meters below the ground and above toll roads, he said. Also, rivers will be intensively dredged. In the discussion, SDD Darmomo, the president and CEO of PT Jababeka, the listed company that owns and manages Southeast Asia’s largest industrial estate in Cikarang, south of here, said: “We don’t need leaders with full of promises; we want to have leaders who are honest and are prepared to defend the small people in order to overcome social disparity.”

DOK. TWC

He went on to say: “The people will put up with problems for a year, after which they will raise questions. I propose that we have a short-term plan, which is to provide homeless people with better shelter in order to lessen slum areas along the rivers, which plaves where people discard trash. A mid-term plan is to make improvements and and even think about moving the capital

city to another place, he added. “In the long run we need to build 100 new Jakartas throughout Indonesia in 20 years so that people would no longer come to Jakarta to seek jobs,” said Darmono. Mochtar Riady of the Lippo Group noted that Singapore was a slum area 40 years ago but the government developed the island-state bloc by bloc. He sug-

Ciputra Group owner Ciputra, Lippo Group founder Mochtar Riady and SD Darmono are some of the were club’s members who attended the forum. Among the club’s cofounders are Kompas Gramedia Group president director Jakob Oetama; former defense minister Juwono Sudarsono; Agung Podomoro Group chairman Trihatma K. Haliman; and Sahid Hotel owner Sukamdani S. Gitosardjono.

Senior Official Calls for Intensive Private Sector Role in Infrastructure The President Post/Reza Ganesha

Chairman of Louis Vuitton Visit to Borobudur Chairman of Louis Vuitton, Philippe Fortunato, visited the Borobudur Temple, January 25. Philippe Fortunato was accompanied by Emmanuelle Guillon, Communication Director of Louis Vuitton. They admired the architecture and the beauty of Borobudur temple while listening to the explanation from Titus Leber, Producer of Borobudur multimedia project and Purnomo Siswoprasetjo, President director of PT.TWC Borobudur, Prambanan and Ratu Boko.

In a discussion on the nation’s infrastructure held at the President Executive Club last month at the Batavia Tower, Jakarta,, Deputy Minister of Public Works Hermanto Dardak said that the role of the private sector must be “maximized” by way of the Public Private Partnership (PPP) concept. According to the Ministry of Public Works (PU), the required investment for 20102014 amounts to Rp 1.923 trillion (about 5% of GDP), of which the state budget (APBN) would provide Rp 560 trillion, regional budgets (APBD) Rp 355 triliun, state owned enterprises Rp 340 triliun and the private sector Rp 345 triliun. As such there is a shortfall of Rp 323 trillion. PU plans to invest Rp 689 trillion in infrastructure for 20102014, but the government can only provide Rp 271,4 trillion (about 40%). The remaining 60% (Rp 417,6 trillion) is expected to come from joint ventures between the government and the private sector and state owned enterprises and companies owned by regional governments. • Meanwhile, the following toll roads are set to come on stream, namely: The Surabaya-Mojokerto toll road (1,89km), the Semarang-Un-

• The Surabaya–Mojokerto (36,27km) toll road is already operational since September 2011 • The Ulujami–Kebon Jeruk toll road (7,67km) is expected to be ready by August 2013

Hermanto Dardak

• •

•

garan toll road (11km), and the Cimanggis–Raya Bogor (3,7km). Under construction are the Ungaran–Bawen, JORR W2 Utara, Cikampek– Palimanan, and Nusa Dua– Ngurah Rai– Benoa toll roads The Cikampek-Palimanan toll road (116km) is set to be ready by 2014 The Pejagan–Pemalang, Pemalang–Batang, and Batang– Semarang (171,5km) could be ready by 2014 The Semarang-Solo toll road (72,64km) is set to be operational by 2014. The Solo– Ngawi–Kertosono toll road (177,12km) wpuld also be operational in the same year The Kertosono–Mojokerto (40,5km) toll road is only 32% ready

Hermanto said road construction faces challenges in the forms of land availability as prices offered by land owners exceed land appraisal and credit disbursement. He said the PU Ministry has proposed that a legal umbrella to conduct land appraisals be established so that prices remain fixed at the time of payment. Such a legal coverage is also needed so that road construction can proceed accordingly. Hermanto added that more intensive coordination among government units are called for in getting land for road construction, as well as ease in bank credits to underwrite the road projects. Said Hermanto: “We need to promote the participation of regional governments, regencies and the private sector in infrastructure projects by way of the PPP financing mechanism and provide incentives to investors.

March 2013 Vol.2 No. 3

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Opinion

ASEAN SMEs to Strengthen Their Role in the Asean Economy In terms of numbers the SMEs far outnumber big enterprises. More than 90% of firms in ASEAN member states are SMEs. These enterprises also contribute significantly to the creation of employment opportunities.

SMEs in ASEAN Countries: Relative Size and Employment in 2000 (estimates)

By Atmono Suryo

SMEs as % of all firms

SME workforce as % of total employment

Brunei

Indonesia

Malaysia

39/m

Philippines

Singapore

Thailand

76/m

Cambodia

Myanmar

Vietnam

SMEs POSITION

Year 2000

ith ASEAN’s population of some 600 million people, SMEs (small and medium enterprises) take up an important position in the region. They are in fact ASEAN’s backbone of national economic life through job creation, the establishment of small business, little shops and the reduction of poverty. In terms of numbers the SMEs far outnumber big enterprises. More than 90% of firms in ASEAN member states are SMEs. These enterprises also contribute significantly to the creation of employment opportunities. Their share in the area of foreign trade, however, is still minimal. One could also add that SMEs share to the country’s GDP is limited, ranging between 30% and 50%. According to the following data (source: ERIA), in most of ASEAN countries SMEs take up more than 90% share of all firms. In the case of Indonesia the percentage share is 98%. It is assumed that in other developing countries, particularly in

There are a number of important activities which can be carried out by ASEAN SMEs, especially medium-sized enterprises. For example in the following areas: • ASEAN integration. AEC (ASEAN Economic Community) aims to strengthen ASEAN economic integration in such areas as trade, services and investment. It is precisely in those areas where SMEs can find their business opportunities that their role to strengthen ASEAN integration could become crucial; • ASEAN resilience. With the global economy caught in a financial crisis the SMEs should also be ready to assist the ASEAN economy to strengthen its resilience; • Innovative and competitive. The medium enterprises should be ready to strengthen their respective innovative and competitive position in this highly competitive world;

Source: Asasen, et al. (2003). Note: Percentages refer to shares in national totals. /m: manufacturing only.

Asia the percentages are not far off ASEAN’s percentages.

SMEs POSITION AND ROLE

Not much is known about the SMEs; collective position (as a group) in the ASEAN economy. As stated before, in terms of numbers they represent a huge number of enterprises. It is not clear about their amounts and role. It is estimated that in Indonesia alone there are some 52 million of them, spread out in various fields of activities. Many of them are still counted as mi-

• SMEs closer cooperation. It is very urgent to organize and develop closer cooperation among ASEAN’s SMEs, to become real business partners (not competitors), and increase intra-ASEAN economic relations (trade-investment- services) which are still limited in scope; • Supply chains. It is suggested by ERIA that ASEAN SMEs become major parts of regional and global supply chains to the benefit of the ASEAN economy as a regional productionbase.

But as rightly observed by Dionisius Narjoko of ERIA (Economic Research Institute for ASEAN and East Asia) “ASEAN is clear in what ASEAN envisions for ASEAN SMEs. But it is not so clear on how ASEAN would achieve their goals”.

cro-small enterprises. With a population of some 240 million people, in Indonesia their existence and activities are crucial. It is estimated that they contribute roughly 60% of Indonesia’s GDP.

ASEANs objectives

ASEAN is aware of the large existence of SME’s and consider them as one of the key elements in the third pillar of the AEC (ASEAN Economic Community) by 2015. They are viewed as the agents for inclusive growth in ASEAN.

ASEAN SMEs have the potential to play a much more important role in strengthening the ASEAN economy, to ensure that ASEAN becomes another powerhouse in the Asia-Pacific arena.

CONCLUSION

There is the urgent need to strengthen ASEAN SMEs’ collective strength. It has also become essential to implement ASEAN program to assist the enterprises in such areas as Access to finance – Technology development – Promotion and Facilitation and Human Resources Development. ASEAN SMEs have the potential to play a much more important role in strengthening the ASEAN economy, to ensure that ASEAN becomes another powerhouse in the Asia-Pacific arena. The writer is former ambassador to the EU

Strengthening the National Shipping Industry National shipping companies are expected to control about 30% of the international shipping market by 2020 and 80% of the domestic shipping market by the same year. As a result, many of the state foreign exchange income went overseas. By Hendra Manurung*

ast year's trade balance deficit will most likely happen again this year. Therefore, efficient management of the oil and gas sector is needed to create good corporate governance due to an increase of oil import volume that would become the main factor to this year's trade balance deficit. The government should immediately tackle last year's trade balance deficit problem immediately because the condition could continue until the end of 2013. The government must soon find a solution to increase the export

value and to keep the fiscal condition under control. It's unfortunate that subsidized fuel continued to rise, thus resulting in lower oil and gas export value at the end of last year compared to the oil and gas import value as a result of lower non oil and gas sector surplus due to the prolonged trade balance deficit. The financial deficit eventually affected Indonesia's trade balance. Finance Minister Agus DW Martowardojo said that the country's trade on non oil and gas dropped significantly because the export commodity price in the international market fell. Nevertheless. the state's payment balance, which is supported by the state's capital reserve

of $110 billion (Rp1100 trillion), remains at a safe level. The implementation of the cabotage principle refers to Presidential Instruction No. 5/2005 on the empowerment of the national shipping industry, which is aimed to boost the number of ships with Indonesian flags. But in reality, the domestic shipping industry still had to work hard to compete in terms of prices with imported ships that are offered at much cheaper prices. The national shipping industry has to pay import duties when producers import raw materials, machines and other equipment. But imported ships have been exempted from any import duty due to the government's import duty exemption facility for imported goods. Indonesia is an archipelagic country with 75 percent of its areas consist of waters. Therefore, it's national shipping industry should grow rapidly.

Law No. 17/2008 on shipping which adopts the cabotage principle was hoped to boost the national shipping industry. Based on the economic perspective, the cabotage principle is intended to improve the economies of the Indonesian people because it offers the national shipping companies a wide opportunity that it was expected to boost the number of Indonesia's commercial ships. Data at Indonesia National Ship Owner Association (INSA) showed there are currently 11,300 units of commercial ships or up by 80% compared to March 2005 which reached 6,014 units. The ships were operating both in the domestic and international shipping market. Unfortunately, the market segment remains low.

sult, many of the state foreign exchange income went overseas. Siswanto Rusdi, director of The National Maritime Institute (2012), blamed the lack of protection and indemnity (P&I) as one of the factors that contributed to the slow national shipping industry growth. P&I is different to insurance due to several factors: • In insurance, the money paid by clients to insurance company is called premium, while in P&I it's called call; • An insurance company is founded and answers only to the shareholders, while P&I is established and answers to its members. This means, the funds raised from the members will be paid back to them when an incident occurred, similar to arisan; • If the amount of claims that were to be paid to members who were experiencing incidents were insufficient, all members would be asked to increase their contribution.

National shipping companies are expected to control about 30% of the international shipping market by 2020 and 80% of the domestic shipping market by the same year. As a re-

But if there were surplus, the fund would be returned to the members in the form of a lower call payment or returned to the members; • P&I normally covered the risks suffered by third parties. For instance, the dock that was damaged by a ship movement, maritime environmental damage caused by contamination from a ship, and more. Insurance only covers something that are more quantified, such as the hull and machinery of a ship and the goods transported by the ship. The national shipping industry has long knew about P&I. But, they only joined with P&I clubs overseas because there was none in Indonesia. Every year Indonesian ship owners paid around $130 million (Rp1.3 trillion) to P&I overseas. The capital flow is really disadvantaging because we didn't get much benefits. Indonesia finally had P&I in 2010, marked with the dec-

laration of Indonesian Maritime Protection Association (Promindo). Through P&I Indonesia, it's expected that the money paid to overseas P&I club can be managed here and benefit domestic shipping companies. Currently there are 21 companies with 400 ships that have become members. P&I's existence is hoped to boost the national economic activities. In general, the payment is counted based on gross ton (GT). The business potential could reach 11 million GT. The national sea transportation had been contributing 30% to the state income. Most of them are in oil and gas operational sector. That's why it's important for the central government to protect the business assets in the national shipping industry through the protection system. *) Hendra Manurung is a lecturer on international relations at President University, Kota Jababeka, Cikarang.

ENGLISH EDITION

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Position

CEO & EDITOR IN CHIEF: Rachmat Wirasena Suryo I CONTRIBUTORS: Atmono Suryo; Jeannifer Filly Sumayku; Andri Marsetianto; Suyoto Rais; Paulus Khierawan; Hendra Manurung; Iqbal Alaik; Majalah RESPECTS REPORTER & PHOTOGRAPHER: Rians Rivco; Heros Barasakti I CIRCULATION: Seny Rosgandasari LAYOUT & DESIGN: Mohamad Akmal I SENIOR MARKETING MANAGER: Donny Martin MARKETING MANAGER: Daniel Trioska I SALES MANAGER: Andrian Irawan

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PUBLISHED BY: PT Kawasan Industri Jababeka. Menara Batavia 25th Floor Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia I Phone: (021) 572 7337 Fax: (021) 572 7338 I Email: ceo@thepresidentpost.com Printed by: PT Dian Rakyat

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March 2013 Vol.2 No. 3

Profile TITUS LEBER:

Borobudur Multimedia and Interactive Project Ready to Astonish the World The President Post/Rians Rivco

A fascinating Borobudur multimedia project entitled ‘Borobudur: Paths to Enlightenment’ initiated and produced by Dr Titus Leber is finally completed. By Jeannifer Filly Sumayku

“A

fter four years, it is finally finished,” said Titus, a renowned Austrian writer, film-director and multimedia creator. On March 11, Leber is set to present the project at The Museum of Ethnology in Vienna. “We are honored to be invited by the Indonesian Embassy in Austria and the Buddhist Society in Vienna. It will be the grand opening in Europe, and then later the project will be launched in Indonesia,” he said. Since 2009 Leber has been working on the Borobudur multimedia project – an interactive exploration of the largest Buddhist Sanctuary in the world by projecting the content of the monument into cyberspace. The project was started when Leber visited Borobudur for the first time. Leber remembered that he saw something fantastic yet didn’t realize what he has seen. “There was not enough explanation and introduction, and my experience was the same as that of other visitors’.” Leber, who has produced a world class masterpiece interactive media under the title of ‘What did the Buddha teach?’

It’s remarkable that it is in Indonesia, which is predominantly Islamic. We were given a chance to do a project about a Buddhist monument. It is the perfect example of Pancasila which promotes different religions to exist.”

in Thailand, found that Borobudur is rich in content as it is the largest Buddhist temple in the world and yet is not known well enough to the world. Collaborating with the manager of the company that manages the Borobudur Temple, the state-owned PT Taman Wisata Borobudur, Leber made the multimedia project with a different approach. He looked back on the intention of the people who built the Borobudur thousand years ago. He believed there are two intentions: firstly, in that era many people didn’t know how to read, and the people who built the Borobudur decided to convey the difficult content by images rather than by words. “So they built an image book in which you can walk around. Currently we live in a society that reads less, but communication through images and multimedia is increasing. So I found that we have a similar approach to express our selves through the images,” he said. Secondly, how we can preserve the core messages of Buddhist’s thinking. He said that when we look at the Borobudur from a bird’s eye view, it looks like a computer chip, a methaphor for storing information like

Titus Leber, who has produced a world class masterpiece interactive media under the title of ‘What did the Buddha teach?’ in Thailand, found that Borobudur is rich in content as it is the largest Buddhist temple in the world and yet is not known well enough to the world. on a computer chip from which we can retrieve its ancient message. His approach is to decode the Borobudur and to find a way to bring the Borobudur to the world – and and the world to the Borobudur. It’s working both ways because people will not come if they don’t know about the Borobudur. The message of the Borobudur that motivates Leber is compassion and tolerance. “We need it very much in our world.” “It’s re-

markable that it is in Indonesia, which is predominantly Islamic. We were given a chance to do a project about a Buddhist monument. It is the perfect example of Pancasila which promotes different religions to exist.” 50 kilometers around the Borobudur, he said, every major religion has manifested itself in a fantastic way and lives in perfect harmony. For example, there’s the Prambanan (Hindu temple) and around 300 mosques situated near the Borobudur, and there are also many Cath-

olic priests coming from Muntilan. “So Borobudur is the place where man can meet the divine within himself.” The project leads to the rich symbolism of the Borobudur´s architecture and narrative content of over 1,400 bas-reliefs, and will make it accessible to a worldwide audience through all forms of digital media, from IPhones and iPads to Blu-Ray discs and a 12-part TV mini-series. At the moment, Leber is the Cultural Director of Movieland in Jababeka, Cikarang. He’s in

the process of realizing several projects there. The first one is to finish the Borobudur, the second is to bring cinematographic literacy to young people. Leber has initiated and built one of the largest open air screens of Indonesia at Movieland. “Our plan is to have every day movie performances here so it will slowly raise the visual literacy of the young.” Leber also has programs with President University to present more provocative films for young people; they can discuss or analyze films at the program. Another program is to create a Far Eastern Version of Universal Studios in Jababeka; it will have big studios to produce movies from pre- to post- production and also as a service provider.

“We need to set up a green screen studio, special effects and also the technology and the service that goes along. In Movieland you will be able to go to old Batavia, Paris, China Town to shoot movies.” According to him, Indonesia has enormous potentials in the film industry. “There are so many beautiful stories from Indonesia, there are also human potentials but for the moment what is lacking is discipline and focused funding by the government. If Indonesia wants to be competitive internationally, they have to play by certain rules.” “The big dream is to set up a bridge between Wayang and cinema. We have so many heroes from Hollywood such as Spiderman, Superman, etc. Meanwhile, we have so many heroes from wayang characters. Why don’t we make our own heroes movie here?” Leber added that on a large scale Indonesia needs to mobilize its best talents to work together. “If you want to have a better movie industry, you have to be serious. If you are not interested, better don’t do it at all. Don’t waste your money and our time. Import the technology, train young people, and create a big, powerful international competitive film industry which we can export instead of getting junk films from elsewhere,” Leber concluded.

March 2013 Vol.2 No. 3

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Laws & Regulation

When a Company Goes Public Many entrepreneurs think that turning their company into a listed company would lift the company’s reputation. Well, that’s not entirely wrong because in reality the best companies in Indonesia are mostly publicly listed companies.

www.haloindo.com

By Paulus Khierawan

he rapidly growing business sector has led to fierce competition among entrepreneurs. Many entrepreneurs think that turning their company into a listed company would lift the company’s reputation. Well, that’s not entirely wrong because in reality the best companies in Indonesia are mostly publicly listed companies. PT Astra International Tbk, PT Unilever Indonesia Tbk, PT Bank Central Asia Tbk, and many other listed companies are considered the best in their fields. But first of all, we need to understand what going public means for a company. The term Go Public can be translated as a company’s activity to sell some of its shares to the general public through the Initial Public Offering (IPO) mechanism. Then, why do entrepreneurs decide to Go Public, what are the benefits they get when they Go Public? There are several reasons why a company chooses to Go Public:

• To raise fresh capital

The company could raise money from the public and use it to extend the business after selling some of its shares. The public who bought the shares will not take part in managing the company; the management can still keep the company under good control.

• To improve transparency

A publicly listed company is required to adopt the principle of

A publicly listed company is required to adopt the principle of transparency because the public who owned some of the shares are entitled to know about the company’s performance.

Publicly listed companies are regulated under Law No 8/1995 on capital market and under the Capital Market and Financial Institution (Bapepam LK) regulation. transparency because the public who owned some of the shares are entitled to know about the company’s performance.

• To improve the company’s image A publicly listed company is more prestigious compared to a private company.

Publicly listed companies are regulated under Law No 8/1995 on capital market and under the Capital Market and Financial Institution (Bapepam LK) regulation.

Generally, a company has to go through four stages before going public:

notary public, and assessor. The parties appointed have to be registered at Bapepam LK.

The company holds a general shareholders meeting (RUPS) to gain approval from all shareholders, and then decide how much shares they want to release to the public. The company changes the company’s statute from a private company to a listed company. After obtaining approval, the company appoints an underwriter and other supporting institutions such as a public accountant, legal consultant,

• Submit documents about the intention to register

• Preparation stage

A company has to submit documents which contained the principle of transparency and a brief prospectus about the company, such as the company’s profile, the profit-loss balance, company’s performance projection, and how the company will use the IPO proceeds. The company must also include opinions from other supporting institu-

tions on the company’s financial report, company’s legal status. The company will be held accountable for the accuracy of all the data and information it submitted. Bapepam will evaluate the documents in 45 days and will declare them effective if they are considered complete. But if it’s considered incomplete, the company will have to complete them first.

• Initial public offering stage

The company may offer the shares to the public once Bape-

pam issued an effective statement. The mechanism of the IPO is arranged by the underwriter. The company has two days to determine the share allotment for investors after the offering period ended.

• The listing stage at the bourse

The shares are listed at the bourse three days at the most after the date of the allotment. The company is also required to report its public offering result to Bapepam LK three days at the most after the share allotment.

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March 2013 Vol.2 No. 3

Energy

Will The Unconventional Gas Boom Hurt Renewables? Based on Potential Gas Committee Estimates and 2010 Consumption Rate (of 24 tcf/year)

All Potential Resources

YEARS

Proved Reserves + Probable Reserves

YEARS

Proved Reserves

So gas, conventional or not, is and will be an important shortterm tool to effectively reduce or replace coal-based power plants, and it could even provide a backup for intermittent renewables, like solar and wind, the key components for combating the global warming challenge. Seen on this basis, shale gas euphoria is not such a bad thing at all. But, since natural gas (including shale gas) is still a fossil fuel, if the world is getting serious about addressing global warming and eventually an increasing number of countries will put a price on greenhouse gas emissions, the current economic advantages of natural gas will diminish or even disappear over time.

Indonesia’s Gas Position

So Lacey and other energy observers may be right in saying that natural gas certainly has a role to play in this current energy transition — assuming we properly value its environmental impact. Calls from forward-thinking global investors to take the low-carbon strategy seriously will not be swept aside, no matter what the short-term challenges are.

So looking globally and from different perspectives, the low price gas phenomena will not directly and negatively impact the nuclear power development. The same thing could be said on renewable energy development. Indonesia may learn from what’s happening in the USA that effec-

Building more gas power plants, could help the country buy time for developing the abundant resources of renewables in the country like geothermal, hydro, and solar to achieve the national energy security objectives. But to get there, the government has to act soon and in more rigorous and consistent ways than what we have seen so far, not least by making clear and concrete action plans supported by effective regulations toward achieving the target set earlier in 2006 at 17% of total energy mix by 2025, or 25% as envisioned by the Minister of Energy and Mineral Resources in 2010.

EDITION 1 VOL III /2013 coverstory THE NEED FOR A ‘SMART’ RENEWABLE ENERGY POLICY In 2011, a collaboration between the German Marshall Fund, the World Resources Institute (WRI) and the German Heinrich Boll Stiftung published a work-paper report on the need for ‘smart’ renewable energy policies in developing countries. The report is a survey of findings from research conducted in 12 developing countries including Indonesia. Their findings show that a bottom-up approach is needed to ensure the effectiveness of policy for making renewable energy meet its strategic roles in the countries’ search for sustainable development, and that sharing international experience could improve the chances of success in renewable energy development on the ground.

department: solar energy

German Experience and Indonesia’s Potential The renewable energy sector in Indonesia is currently undergoing a considerable development. New and improved legislation for the sector is in progress and Indonesian as well as international companies see the country as a promising future market for renewable energy applications. The international exchange of experience between experts and pracitioners could help identify remaining barriers and caveats to get speedier development.

business Is It Time to Have Green Development Banks in Indonesia? Having dedicated financial institutions for green business could help encourage renewable energy developments, because according to recent market analysis, financial innovation is the real key to scale-up the market demand, which in return will boost industry growth.

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Buying time for renewables

tive use of gas in power generation is in fact a boon to renewable energy development.

Dedicated to Clean And Renewable Energy

Impacts on Nuclear

Impacts of low price gas, thanks to the abundant unconventional gas in developed countries is more directly felt by the nuclear industry, at least in the USA. Rebecca Smith and Daniel Gilbert reported in the Wall Street Journal recently that cheap natural gas unplugs the US nuclear-power revival (WSJ March 19, 2012). The report says that out of 29 new reactors planned for development involving 15 power company in the US, only 2 proj-

not have access to cheap natural gas. Some emerging economies like China, India, and Korea, are planning, or are in the process of building, relatively large nuclear power plant capacities (see RESPECTS edition 12 Vol. 1). But if the lessons from Japan and Germany on one hand and Iran and North Korea on the other are considered, the decision to build nuclear power plants is not based only on economics.

Indonesia’s First Magazine

Indonesia has abundant reserves of natural gas. This has been proven since over four decades ago during Suharto Administration. In the early eighties one of the world’s largest gas reserves was found in North Sumatra, and another large reserve was later found in East Kalimantan. But back then, gas was almost considered as a by product, just a ‘bonus’ from oil exploration. Accordingly, the country did not use the gas to conserve more valuable oil, but it sold much of its gas production (under long term contracts) to foreign countries like Japan, China, and the USA. Now, when the time has come to use more gas to conserve oil and reduce the green house gas emissions, and with the country’s oil production stagnated at a lower level than the country needs for development, the country can not use it effectively to reduce the swelling oil price subisidies which now totaling over $20 billion annually. Some local experts believe that shale or unconventional natural gas could also be found and exploited here, but even if this is true, the country needs to build the necessary infrastructure to effectively use this resource to reduce dependence on oils and coals, which now account for over 90% of the primary energy used to generate electricity. How would natural gas development stand against renewable energy? It is very hard to say, since the national investments on renewables are relatively very low.

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These trends are driving record levels of interest from investors. In 2011, for the first time ever, global investments in renewable energy surpassed investments in fossil fuels. The bottom line: the price of renewable energy continues to come down while the projected price of natural gas is only expected to rise.

Years

The industry clearly took the challenge seriously. Today, due to bigger turbines, more reliable equipment and better materials, the cost of wind has dropped to record lows, where some developers have even signed long-term power purchase agreements in the 3 cents per kilowatt-hour range. Late last year Bloomberg New Energy Finance projected that wind would be fully competitive with energy produced from combined-cycle gas turbines by 2016 under fair trading conditions.The same technological improvements and maturation in project development in wind are driving down the cost of solar PV as well, as abundant examples in the world have shown.

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A good example of this is when the German government decided to promote using solar PV around two decades ago, while accepting that solar PV was far from competitive against the conventional energy which the country was depending on. Thanks to the farsightness of German politi-

But the picture of nuclear power development in some other countries looks rather different, especially those which do

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Investment in renewable energy is the choice to make in the wake of global warming and other climate change issues that the world is facing. Being an activist in the Indonesian Renewable Energy Societies (IRES), I personally have made this statement many times, especially in trying to convince the government of the need to create regulations supporting renewable energy development in Indonesia. It is indeed true that all investments must ultimately rise or fall on their economic merits, but there are also other things that must influence our choice to invest on new things in a situation where the economic merits are blurred by various intervening factors like the disguised – or even blatant – subsidies that many goverments give to oils, gas, and nuclear.

In the American context, Lacey pitted gas against wind development a few years back.When gas prices started their precipitous drop, at the American Wind Energy Association’s annual conference in 2010 the topic dominated the CEO roundtable discussion.The wind business executives attending the conference believed that the single biggest challenge is improving wind technologies to compete with the lower gas prices.

US Federal statistics quoted in the report indicate that utilities are turning to natural gas to generate electricity with 258

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Stephen Lacey, of Climate Progress, found that cheap natural gas prices are one of the biggest short-term threats to the use of renewable energy in the US today. With a glut of gas dropping prices to historic lows, the competitiveness of technologies like wind, solar PV, and solar hot water is facing significant challenges. But Lacey concludes that while the renewable industries are indeed being challenged, it is most likely that they are not beaten. He finds that amidst all the hand wringing over what cheap natural gas will do to investment in renewables, we often lose sight of the fact that the cost and price of renewable energy technologies are still chasing the record price drops in natural gas. In other words, one should not forget that the whole world, led by Germany and the US in terms of technology, and other emerging economic powerhouses like China and India, are continuing to find new technologies, which could make renewable energy like solar and wind increasingly cheaper so becoming more and more competitive with oils – even shale oil.

Renewable energy is definitely a home-grown or domestic resource and investing in it will clearly benefit the local economy, empower local communities, encourage entrepreneurial innovation, and spur new types of economic development. But ultimately, in addition to ensuring national energy security, renewables are an important tool for helping the country reduce greenhouse gas emissions and combat global warming. Lacey shows estimate of the time needed by gas resources in the US to last (see table 1).

ects were coming into the execution stage. Based on this report’s analysis, it is suspected that what has killed the ‘nuclear renaissance’ recently was not the Fukhushima nuclear meltdown, or the strongly increased development prices that followed, but cheap and abundant natural gas, which although it is less clean compared to nuclear, is certainly much cheaper, easier, and faster to develop, and safer.

plants to be built in the next four years till 2015. According to the US Energy Information Administration (US-EIA), the cost to build a relatively big gas-fired power plant (over 1,000 MW) is less than $1 million per MW, compared to over $5 million per MW for a nuclear power plant. Nuclear power plants require large capacity to reach their true economic merits. Other EIA figures quoted by WSJ indicate expected addition to US power-generation in the next 25 years as 58.1% using natural gas, compared to 30.6% of total renewables, and only 4.3% nuclear and 7.6% coals and oils.

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ome global political observers even think that the abundance of this new kind of gas may change the current geopolitics. For sure, in this context, if the US and other western countries start to use shale gas to reduce their dependence on oils from the Middle East and South America, it could ease the tension in the Hormuz Strait and politically the US may look at Iran’s nuclear escapade more objectively. But even if the shale gas is indeed abundant and the current price is relatively low, how long would it be before it catches up with the oil price is the question? It’s price will for sure increase one day as demands continue to go up. Afterall, the gas is fossil energy which inevitably meet the same fate as other fossil energy. It must eventually run out because it is non-renewable.

cians, the country has become the clear example of how renewable energy must be developed and supported to get its eventual economic merits.

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By Jon Respati

Shale-gas well illustration (www.cleanbiz.asia)

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While environmentalists are still debating whether shale gas drilling is environmentally hazardous or no more than a sophisticated way of extracting natural gas from the earth, it is widely considered by global energy experts as a potential contender to renewables (and for sure nuclear) since as an energy source it is much cleaner than oils, and there are seemingly abundant reserves that could be tapped using new drilling technology, resulting in a sale price which is highly competitive against any other energy resources.

Table 1. How Ling Will it Last?

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With some countries in the developed world starting to drill for shale gas in their own backyards, the focus of energy investments may go to that direction.Will this lead to depressing investment in renewable energy?

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REN DEV EWABL THE ELOPM E ENER E G WA Y TO NT IS Y GO

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March 2013 Vol.2 No. 3

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International

RI, Nigeria Elevate Relations on Trade and Investment Indonesia has the interest to partner with Nigeria on trade and investment. Trade between the two countries has reached $1.24 billion in 2010 and in 2011 bilateral trade reached $2 billion or increased significantly to about 60% from previous year. And the trade is in favor of Nigeria due to Indonesia's imports such as leather, cocoa, crude oil and oil-related products.

he two-day visit of President Susilo Bambang Yudhoyono to Nigeria would strengthen the bilateral relations which had existed between the two countries for more than 100 years before Nigeria’s amalgamation in 1914. President SBY was welcomed by Nigerian President Goodluck Ebele Jonathan. They had a bilateral meeting about issues related to both countries’ interests, particularly the cooperation in the areas of trade and investment; politic and security; and social-culture. Indonesia has the interest to partner with Nigeria on trade and investment. Trade between the two countries has reached $1.24 billion in 2010 and in 2011 bilateral trade reached $2 billion or increased significantly to about 60% from previous year. And the trade is in favor of Ni-

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geria due to Indonesia's imports such as leather, cocoa, crude oil and oil-related products. At present, at least 12 Indonesian companies are in Nigeria and they are all satisfied in doing business there. Nigeria, as they said, has been a tremendously good partner. These companies produce many varieties of products from pharmaceuticals to consumer products which becomes daily necessities of Nigerians. During the visit, President SBY also had a business forum with Indonesian companies and Nigerian business leaders and discussed about the increasing relation of both countries especially in oil and gas sector, services, and others. SBY listened to the progress of current investments from Indonesia to Nigeria, especially the presence of "Indomie" in Nigeria, and also new cooperation agreement, includ-

ing Boeing 747 service center facilities in Indonesia and the plans for setting a workshop facility in Nigeria and also to other potential business cooperation in textile, cotton, palm oil, and crude oil. In the business forum, Indonesia Trade Minister Gita Wirjawan and Trade and Investment Minister of Nigeria, Olusegun Olutoyin Aganga were committed to increase trading value of both countries up to $5 billion in three years. The bilateral meeting also produced agreement to established Preferential Trade Agreement–PTA and task force that will create roadmap of trade and investment development of the two countries. According to Gita, PTA with Nigeria is a good step to develop market of Indonesia’s products to non-traditional market, that previously difficult to be penetrated.

New Impulse for RI-Netherlands Relations The President Post/Rians Rivco

The Netherlands and Indonesia are to step up cooperation on politics, economics and culture. Foreign Minister Frans Timmermans made detailed agreements on this with his Indonesian counterpart Marty Natalegawa during his visit to Jakarta last month. “Indonesia has a rapidly growing economy and is primarily focused on Asia, the United States and Australia,” Timmermans said. “We have strong historical ties with Indonesia, but this does not mean we can take our relationship for granted. So we are investing in personal contacts – politically, economically and culturally. After all, our two countries have a great deal to offer each other.” Marty said the two ministers had a fruitful and productive discussion on cooperation ranging from trade, investment, infrastructure development, water management, to agriculture and city planning. "We recognize that our two countries have special ties in the past, we must move forward and make our relationship more contemporary," Marty said. Within the European Union the Netherlands ranks second as trading partner of Indonesia. The mutual trade volume increased with more than 20% reached $3.3 billion in between January and September 2012. With the harbor of Rotterdam and Schiphol Airport, the Netherlands wants to remain the main entry point to the EU for Indonesia. Dutch businesses also invest heavily in Indonesia. Timmermans also met with the vice-governor of Jakarta, Basuki Tjahaja Purnama, to discuss among others the flood problems of Jakarta. Since 2007, the Netherlands advises

The Netherlands Foreign Minister Frans Timmermans (left) and his Indonesian counterpart Marty Natalegawa during his visit to Jakarta last month. The two ministers had a fruitful and productive discussion on cooperation ranging from trade, investment, infrastructure development, water management, to agriculture and city planning.

We have strong historical ties with Indonesia, but this does not mean we can take our relationship for granted. So we are investing in personal contacts – politically, economically and culturally. After all, our two countries have a great deal to offer each other.” Frans Timmermans The Netherlands Foreign Minister Indonesia on how to manage the floods. Timmermans said, “This is an enormous task where Dutch companies, as well as our government and knowledge institutes, can play an important role. No country is better equipped for this than the Netherlands.” The Netherlands and Indonesia will also consider ways of

helping students study in each other’s countries. Every year the two foreign ministers will meet for political consultations to discuss the progress made in these joint activities. Over 1,200 Indonesians are currently studying in the Netherlands and there are about 250 joint ventures involving Dutch knowledge and educational institutions and Indonesian counterparts. At Indonesia’s request, the Netherlands is starting up a project to improve the relationship between the police force and civilians in Papua and the Moluccas, with a special focus on human rights and cultural differences. Both Ministers discussed how greater transparency and openness in Papua can help attain the Indonesian government’s aim of improving the position of the local population. The two foreign ministers also discussed the importance of toleration of religious and other minorities in Indonesia and the Netherlands.

Indonesian Consul General Received Medal from Ho Chi Minh City Government The Indonesian Consul General to Ho Chi Minh City, Bambang Tarsanto, received an award from the Ho Chi Minh City government for his contributions to promoting cooperation between Indonesia and Vietnam. The award medal was pinned by the Chairman of People of Ho Chi Minh City Council, Le Hoang Quan. According to Le Hoang Quan, Bambang made an example of

the betterment in Indonesia’s investment in Ho Chi Minh City. In the beginning of his term of office, there had been 25 Indonesian companies conducting their business in the city. By the end of 2012, the number jumped to 31 companies with capital amounting to $233 million. Another significant increase, he stated, was the bilateral trade reached $4.6 billion in 2012,

an increase from $3 billion in 2010. Bambang Tarsanto, who ended his assignment in Vietnam by the end of February 2013, conveyed his gratitude for all the assistance and cooperation provided by the Ho Chi Minh City government, so that all of Indonesia’s trade, investment, tourism, social and cultural promotional activities went smooth and successful.

President SBY (left) and Nigerian President Goodluck Ebele Jonathan. They had a bilateral meeting about issues related to both countries’ interests, particularly the cooperation in the areas of trade and investment; politic and security; and social-culture.

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March 2013 Vol.2 No. 3

Education

International Friendship Week at President University The event was held from 9th to 14th of February 2013 using Chinese Lunar New Year as the broad theme. For the record, the Lunar New Year is also celebrated by the majority of international students who are currently enrolled at President University (PresUniv).

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the devastating effects of the First World War. They experienced increasing hostilities, mistrust and hatred between countries providing the perfect conditions for another imminent battle. Therefore there was a greater need for friendship amongst nations as well as amongst individuals. Since then, celebration of National Friendship Day became an annual event. The noble idea of honoring the beautiful relationship of friendship caught on with the people and soon Friendship Day became a hugely popular festival.

By Jhanghiz Syahrivar

resident University Student Union (PUSU), one of the student organizations at President University - Indonesia, recently organized a big event called the International Friendship Week (IFW). The event was held from 9th to 14th of February 2013 using Chinese Lunar New Year as the broad theme. For the record, the Lunar New Year is also celebrated by the majority of international students who are currently enrolled at President University (PresUniv). The opening ceremony of IFW was organized by PUSU in collaboration with the Association of Vietnamese Students at PresUniv. The event conducted at the student housing area was enlivened through varieties of entertainments and music and dance performances from local and foreign students. The opening ceremony was closed with fireworks and was attended by thousands of enthusiastic students. On the second and third day of International Friendship Week, PUSU collaborated with China and Vietnam Student Associations and President University Nippon Community (PUNICO) – a small community of Japanese Culture’s lovers at PresUniv – to open booths selling traditional foods from Vietnam, Japan and China. Some games originated from Japan were show-

cased in the afternoon. Some of the students who participated in the event also sold movie tickets of “Chinese Zodiac”, starring Jackie Chan, to watch together at night. International Friendship Week’s closing ceremony was held on Thursday, February 14, 2013,

at 7pm at the student housing of PresUniv, attended by students and members of AIESEC (Association for the International Exchange of Students in Economics and Commerce) from Brazil, Russia, Argentina, Taiwan, and China. During the closing ceremony, participants could enjoy

Barongsai or Lion Dance performance, musical performances from Russia, Japan, and China, local and foreign dances, and some ninja stunt actions. There is not much valid literature on the origin of Friendship Day, if you browse the net

you will find several versions to the story in which their validities are subjects for further investigations. According to some literature, for instance, the United States Congress, in 1935, proclaimed that the first Sunday of August as National Friendship Day. People of that era had seen

According to other literature, Friendship Day was originally proposed by Joyce Hall, the founder of Hallmark cards in 1919, and was intended to be the first Sunday of August (other literature indicates the 2nd of August) and a day when people celebrated their friendships by sending cards. The first Sunday in August was chosen as the centre of the largest lull between holiday celebrations but it faced consumer resistance, given that it was rather too obviously a commercial gimmick to promote greetings cards. Despite the confusing origins and facts about the event, International Friendship Week at President University this year really showed the spirit of unity in cultural diversity among the local and international students. Jhanghiz Syahrivar, Head of Public Relations Division President University.

The President Post

BUSINESS

SECTION B March 2013 Vol. 2 No.3 www.thepresidentpost.com

Meanwhile, Forval Corporation chairman Hideo Okubo said at least seven companies have joined the Japanese SMEs Center. Hideo said among the seven companies which have joined the Japanese SMEs Center are PT Summit Electrical Steel Processing Indonesia, PT Katsuyamaseiki KKB Indonesia, PT Kobayu Trading Indonesia, PT Tsujikawa Indonesia, and PT Nihon Haken.

BUSINESS BRIEFS Japanese SMEs Eye Cikarang PT Lippo Cikarang has officially opened Japanese Small Medium Enterprises (SMEs) Center in Cikarang area, Bekasi, West Java, to serve small and medium investors from Japan. “The improvement of investors interest to invest in Cikarang industrial areas has had a positive impact on regional economic growth,” PT Lippo Cikarang President Director Meow Chong Loh said here on Monday. He noted that the presence of Japanese SMEs Center is a chance for sustainable business and investment in the area. Meow Chong Loh explained that Lippo Cikarang and Tokyo-based Forval Corporation will accommodate the investors from Japan who would like to invest in Indonesia.

Bank Mandiri Posts 26.6% Increase in Net Profit

Zulkifli Zaini

Publicly-traded lender PT Bank Mandiri reported a 26.6% increase on-year in net profit to Rp15.5 trillion in 2012. “The surge in net profit was attributable to 23.7% rise in outstanding credits by the end of 2012,” Zulkifli Zaini, the president of the state bank, told reporters here on Monday.

The bank`s outstanding credit grew to 388.8 trillion by the end of 2012 from Rp314.4 trillion a year earlier, with the highest growth for small credits. Growing fee-based income also contributed to the rise in net profit, Zulkifli said. “Fee-based income rose 2.4% to Rp12.2 trillion in 2012 from Rp11.95 trillion in 2011,” he said. He said the public confidence in the the country`s largest bank also grew as indicated by an increase in the amount of third party funds it holds. Third party funds held by the bank rose to Rp482,9 trillion by the end of 2012 from Rp422.2 trillion a year earlier, he said. He said cheap funds including giro and savings made up the bulk or Rp316.1 trillion of the total amount of third party funds. “Savings contributed Rp202.2 trillion to the cheap fund or an increase of 23.5%,” he said. The bank has continued to expand its network of branches and supporting facilities to increase its capacity to collect cheap funds. In 2012, the bank opened 273 new units of bank branch bringing the number of its branches to 1,810 units including auxiliary offices from 1,537 units in 2011. It also has increased the number of its ATM units by 1,989 units to 10,985 units, and the number of its Electronic Data Capture (EDC) units to 180,352 units.

PTDI Targets Asia-Pacific Market The Indonesian Aerospace Company (PTDI) is focusing on the Asia-Pacific market and investing Rp1.4 trillion in 2013 mainly for development of NC212-I, CN235 Next G and N219 aircraft.

TDI is also concentrating on the production facility maintenance, regeneration and decomposition of human resources and increasing the amount of work capital for contracted projects from the Indonesian government, Assistant to PTDI`s President Director for Quality Control, Sonny Saleh Ibrahim, told ANTARA here on Saturday. According to him, the company`s investment program in 2013 has been incorporated in PTDI`s 2013 Business Plan which has been decided by the shareholders, the Ministry of State Enterprises and the Ministry of Finance. Sonny pointed out that PTDI has also had its sale plan in 2013 as the company noted the projection of the world market that needs 300 units of military transport aircraft in the medium class as CN235 (with 35 to 50 seats) till 2019. He further said the Indonesian market was projected to demand 120 aeroplanes of smaller-class

with 15 to 19 seats from 2011 to 2030 for civil and military purposes. In this segment, PTDI will sell new-type aircraft N219 with 19 seats. In 2013, PTDI has the opportunity to get contracts from the domestic market for three units of CN235 for the Navy, three Bell 412-EP helicopters for the Navy, Sonny said, adding that still in this year, PTDI is trying to win contracts from a number of Asian countries which are expected to buy two units of CN295, four units of CN235 and two units of NC212. Sonny said the company was projected to deliver three units of CN235, three units of NC212 and two units of Bell 412-EP helicopters.

Services

PTDI is also offering its prime services as manufacturing of aerostructure components with high quality, competitive prices and on-time delivery services, Sonny said. PTDI`s customers for the services are Spirite (Britain) for Airbus, Eurocopter (France),

Airbus Military (Spain), KAI (Korea) for Boeing, CTRM (Malaysia) for Airbus, he said. Likewise, PTDI produces such multi-function aircraft of small and medium sizes as NC212, CN235, CN295, Nbell 412, NAS332 Superpuma and EC725 Cougar which are ideal for developing countries. The company also offers modification services for PTDI aircraft to the countries which use PTDI products and Boeing with serial numbers from 200 to 400 in Indonesia among other things, he said. Sonny pointed out that countries which use PTDI`s NAS 332 Superpuma helicopters are Indonesia and Malaysia, and those using PTDI`s CN235 and NC212 include Malaysia, Brunei Darussalam, Thailand, Pakistan, South Korea, the United Arab Emirates, Senegal, Burkina Faso, Venezuela and Indonesia.

Cooperation

Sonny said PTDI has set up long-term cooperation with a number of world-class companies such as Spirite (Britain) on the manufacturing of components for different types of Airbus, Airbus Military (Spain) on sharing production of CN235. He added that as a delivery center for Asia and the Pacific, Antara/Zabur Karuru

CN295. This year, PTDI is trying to win contracts from a number of Asian countries which are expected to buy two units of CN295, four units of CN235 and two units of NC212.

Pertamina Mulls Oil Field in Sudan State oil and gas company Pertamina has been offered to manage and explore oil and gas fields in Sudan. Deputy minister for energy and mineral resources Susilo Siswoutomo said here on Monday after receiving a Sudanese delegation that Sudan has big oil and gas potentials. “Sudan has produced quite a lot of crude oil reaching 500,000 barrels a day. The reserves are still abundant,” he said. The Sudanese delegation that came to the meeting included the Sudanese house speaker accompanied by the Sudanese

time met with the Sudanese president,” he said. He said Sudan has so far exported part of its crude oil production.

Susilo Siswoutomo ambassador to Indonesia. Susilo said the arrival of the delegation followed President Susilo Bambang Yudhoyono`s recent visit to that country. “President Yudhoyono at the

Pertamina has allocated $6.77 billion for capital expenditure in 2013 mostly for investment in the upstream sector including acquisition of oil and gas blocks reaching up to $3.1 billion or 46% of its investment plan. A total of $638 million meanwhile would go to processing projects, $546 million to marketing and commercial activities, $437 million for gas business and $2 billion for other purposes.

PTDI will raise the cooperation into profit sharing basis for NC212 and the company will serve as a delivery center for CN295 in Asia and the Pacific. PTDI also cooperates with Eurocopter (France) on the manufacturing of components for EC725/EC225 and the company will also serve as a delivery center for Indonesia. In cooperation with Bell Textron (Canada), PTDI will be the Bell 412 delivery center for Indonesia. With European Aeronautic Defence and Space Company, PTDI will serve as Airbus and

Eurocopter holding company. In the strategic cooperation with Airbus Military, PTDI will market NC212, CN235 and C295 in Asia and the Pacific besides cooperation on NC212 improvement.

APEC

Commenting on the Asia Pacific Economic Cooperation (APEC) forum scheduled to be held in Bali, in October 2013, Sonny said the forum is expected to call on developed countries like Japan which have made Indonesia a big market

to maintain fair trade with Indonesia so as to balance the import and export values. What he meant by fair trade is that according to Sonny a one billion coal trade is not of the same value as that of a one-billion crude oil trade. The amount of the money is the same but the result of the trade in the mining sector is different as that in the automotive sector. Sonny explained that trade in the mining sector would reduce mining sources and damage the environment while trade in the automotive sector

would not reduce the automotive production. Sonny hoped Indonesia through the upcoming APEC forum would call on developed countries to buy its industrial products including aircraft and to use their own mining resources. As the economy in the Asia-Pacific is improving, more countries in the region are expected to buy PTDI`s aircraft so that the population of PTDI products in the world would increase and there would be commonality products of PTDI, he added.

March 2013 Vol.2 No. 3

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Business Surveyor Indonesia, Sucofindo To Merge in March The merger is conducted in an effort to enhance business of the two companies because both firms have similar business, expertise and market

he merger process of two state-owned companies, respectively PT Surveyor Indonesia and PT Sucofindo, will be held starting March 2013, Semarang Branch manager of PT Surveyor Indonesia, Epi Darlis has said. “Each team will record assets of both companies, in which the results will be discussed during general meeting of sharehold-

ers,” Darlis said here on Thursday. According to him, it was State Enterprises Minister Dahlan Iskan`s initiative to merger the two state-owned companies. The merger is conducted in an effort to enhance business of the two companies because both firms have similar business, expertise and market, he said. “We have no idea whether Surveyor Indonesia or Sucofindo will be chosen as the name after the two companies merged, or perhaps there will be a new name such as Bank Mandiri,” Darlis noted. Bank Mandiri is a new name for four merged banks namely Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Export Import Indonesia (Bank

EXIM) and Bank Pembangunan Indonesia (Bapindo). Darlis said PT Surveyor Indonesia absorbed 4.4% share from PT Sucofindo, 10.4% from Societe Generale de Surveillace (SGS), and 85.12% from the Indonesian government. PT Surveyor Indonesia, which was established in 1991, has offered several types of services among other things products certification, verification of imported/exported goods, prices verification and estimation, industrial development consultancy, ecolable certification and the implementation of government programs monitoring. Meanwhile, PT Sucofindo (Superintending Company of Indonesia) is a state-owned firm, in

We have no idea whether Surveyor Indonesia or Sucofindo will be chosen as the name after the two companies merged, or perhaps there will be a new name such as Bank Mandiri.” Epi Darlis Semarang Branch manager of PT Surveyor Indonesia which its business covers among other things inspection, monitoring and assessment. Some 95% of Sucofindo`s share is owned by government and the rest belongs to SGS.

PT INTI, PT LEN to Merge The government plans to encourage PT Industri Telekomunikasi Indonesia (INTI) to consolidate with PT Lembaga Elektronika Nasional (LEN) to improve the companies` financial performance. “By consolidating it is hoped the companies would have more competitive edges and be able to take part in tenders and carry out large-scale projects,” State Enterprises Minister Dahlan Iskan said here on Tuesday. He said a new company would be set up for the restructuring program. “INTI and LEN would be merged with none being dominant in the new company,” he added. The minister did not tell about the name of the new company

nor its total assets. “What is certain is that PT INTI`s assets are bigger than LEN`s although the two have their own superiority,” he said. Dahlan said the consolidation option was taken after PT Telkom`s plan to acquire PT INTI was cancelled. Before PT Telkom planned to acquire 49% of PT INTI`s shares in view of the two companies` similar lines of business. The plan was cancelled before it was approved by the House of Representatives and minister Dahlan replaced it with consolidation. Dahlan meanwhile said the planned merger between PT Sucofindo and PT Surveyor Indonesia would soon be realized with a

new company PT Surfindo to be set up for it. “The consolidation will not be done upon “who takes over who” principles but on who has the bigger assets,” he said. Dahlan said the president director of PT Surfindo has already been named as well as members of its board of directors. “I have named Fahmi Sidik, the former president director PT Surveyor Indonesia, president director (of the new company),” he said. Dahlan said PT Surveyor Indonesia and PT Sucofindo must consolidate because the two companies` lines of business, expertise and markets are almost the same. “The two companies are overlapping with almost 100% of their business activities

being similar. So, they must be merged to make them more powerful,” he said. He also did not mention the value of their assets or their business capabilities. The minister said it was hoped the consolidation could help the government especially the ministry of trade monitor export-import activities.”Our surveyor must become big or otherwise the service business would be controlled by foreign companies,” he said. Dahlan said to merge stateowned companies his office first had to ask for permission to the House of Representatives and the finance ministry before a government regulation would be issued for it.

MTA 2013 Set to Unveil Precision Engineering Technology MTA 2013 is soon to be held in Singapore. It is the largest international exhibition of engineering industry trade event in Asia, will be showcasing tools that aid in the manufacturing of machine parts for the oil & gas industry at the Singapore Expo from 9–12 April 2013. This leading event is held every two years and consistently delivers buyers of precision engineering technology from across the whole Asia and from all manufacturing sectors. With Singapore being the key manufacturing hub in Asia, coupled with the prestige of MTA being the premium market place for both international and regional machine tool brands, MTA has long been the choice platform for machine tool brands to launch their latest products and services in Asia. Over the four days of the show, this event traditionally attracts more than 13,700 visitors and 860 exhibiting companies and generates more sales and more media interest than any other marketing platform. MTA 2013 will be putting up a Capabilities Hub – a showcase featuring a group of precision engineering enterprises that provide a comprehensive range of products and services catering to high

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

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

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

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

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

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

The 4th ICCSR Brings Ways to Implement CSR Ethically Indonesia Business Links (IBL), as the leading CSR advocate in Indonesia, will host the bi-annual conference on CSR: “The 4th International Conference and Exhibition on Corporate Social Responsibility” (ICCSR) on 13-14 March 2013 at Balai Kartini Exhibition & Convention Center, Jakarta, Indonesia. Indonesia Business Links (IBL), as the leading CSR advocate in Indonesia, will host the bi-annual conference on CSR: “The 4th International Conference and Exhibition on Corporate Social Responsibility” (ICCSR) on 13-14 March 2013 at Balai Kartini Exhibition & Convention Center, Jakarta, Indonesia. Opened by Prof. Kuntoro Mangkusubroto, Head of the President’s Delivery Unit for Development Monitoring and Oversight and Head of Indonesia’s REDD + Task Force, this year’s Conference’s theme is “Beyond CSR: A Way of Life” – Implementing CSR Ethically. It is expected that the delegates understand the latest CSR issues, address challenges and opportunities, learn from leading sustainability practitioners, as well as acquire crucial tools and resources to build sustainable business strategies in Indonesia. Noke Kiroyan, Chairman of Indonesia Business Links, said, “The 4th International Conference and Exhibition on CSR 2013 is tailored to encourage companies to meet industry experts to exchange CSR ideas, innovative solutions, and experiences. Indonesia Business Links’ goal is to ensure that the Conference is an effective platform where delegates can benefit from each other, develop long-term CSR solutions or initiatives, to help them meet the growing expectation of their stakeholders.”

Para delegasi akan membahas isu-isu CSR terkini, menjawab tantangan dan peluang, berbagi pengalaman dari para pakar dan praktisi, serta mendiskusikan strategi bisnis berkelanjutan di Indonesia. essential knowledge to build a sustainable business strategy in Indonesia,” said Yanti.

Lily Widjaja, Conference Director of the 4th International Conference and Exhibition on Corporate Social Responsibility (left) and Yanti Triwadiantini, Executive Director of Indonesia Business Links (IBL). “The 4th ICSSR 2013 will provide insights to the delegates as to where the CSR opportunities lie in our growing market in Indonesia. We will also have best practices be exchanged to enable companies to model their businesses and take on CSR responsibility,” he added. Yanti Triwadiantini, Executive Director of Indonesia Business Links, said IBL is targeting more than 300 delegates from different backgrounds; major compa-

nies in Indonesia, represented by its CEO and corporate officers in charge of CSR, leaders of organizations society, academia, and government. More than 60 speakers will discuss major issues concerning CSR and strategy implementation. “We hope the conference will bring the discussion of the latest issues of CSR, the challenge and the opportunity, to learn from practitioners and experts about ‘Sustainability’, as well as gain

Lily Widjaja as the Conference Director of the 4th International Conference and Exhibition on CSR 2013, said “We are honored that Mr. Kuntoro Mangkusubroto will open the conference. We are also looking forward to Joko Widodo, Jakarta’s Governor, and Dahlan Iskan, SOE Minister, will be present at the closing of the conference. “ She added, “The 4th International Conference and Exhibition on CSR 2013 is indeed a good place for the delegates to expand their business networking and for interaction, and an opportunity not to be missed. This will be encouraged to discuss and stimulate consciences among themselves and their stakeholders, and that CSR be

implemented ethically, as well as it will provide a peer-learning on how integrating CSR into business way of life.” The conference will consist of four sessions which each session will feature representatives from each sector: CSR experts, NGOs, and academia. Break-out sessions will focus on a variety of topics, among others, of the Anti-Corruption, Environmental Protection, Conflict and Disaster Risk Mitigation. Alongside the conference, there will be an exhibition on a showcase of CSR initiatives and activities from various organizations. For more information on the 4th ICCSR and online registration please visit the conference website at: www.ibl-conference.org

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March 2013 Vol.2 No. 3

Investment Kualanamu toll project, and Umbulan clean water poject, with total investment worth Rp54.52 trillion. The investment body has offered various infrastructure projects to receive capitals from abroad, he said. The government has been focusing on its priority infrastructure development program called the Indonesian Economic Development Acceleration and Expansion Master Plan (MP3EI) 2011-2025.

INVESTMENT BRIEFS BKPM to Accelerates 15 Infrastructure Projects

Envoy Slams Complicated Investment Bureaucracy

The National Investment Coordinating Board (BKPM) has facilitated the acceleration of the development of 15 infrastructure projects worth Rp100.66 trillion last year. Of the 15 infrastructure projects, five projects used a government-private scheme, Fritz Silalahi, the BKPM`s investment infrastructure planning director, said here on Monday. The five projects are PLTU 2 x 1.000 MW in Central Java, Cruise Tanah Ampo terminal project, Soetta-Manggarai railway project, Medan-

Dr. Georg Witschel

German Ambassador to Indonesia Dr. Georg Witschel said that complicated bureaucracy poses an obstacle to foreign investment inflows in the country.

“Several German companies are concerned about the very difficult bureaucracy in Indonesia,” said Witschel in an interview with Antara here on Monday. According to him, although the Indonesian Investment Coordinating Board (BKPM) has managed to shorten the process of foreign investment applications, the procedure of applying for investment permits in several regions in the country is still complicated. However, he added that Indonesia could resolve the problem by simplifying bureaucracy to attract more foreign investors. “Another obstacle is poor sea infrastructure as the companies have to distribute or transport goods from island to island,” he said. Witschel noted that sea transportation in Indonesia is often too slow as the country has a few deep seaports to accommodate tall cargo ships. “Another very important point is the average school attendance in Indonesia is still low so skilled workers are less good developed than the number of other Asian countries,” he said. In addition, Witschel said the increase of minimum wages may be a disincentive for several industries in Indonesia.

DHL to Invest Rp51.2b to Strengthen Domestic Market DHL has also built a new warehouse on a 17,000 square meter plot of land in Cimanggis.

T DHL Supply Chain Indonesia announced here on Wednesday it would invest Rp51.2 billion (40 million euro) in the next few years to strengthen its front line position in the country`s market. “Indonesia is our main focus. Industrial experts have predicted Indonesia will grow at an average of 6.3% and our supply chain industry by two digits,” DHL Supply Chain CEO for South Asian and Southeast Asia, Oscar de Bok, said.

Until 2015, he said, DHL plans to increase its transportation fleet by more than one hundred percent from presently 370 vehicles. “We will increase our workers by more than 70% from presently 2,250 and warehouses by up to 60% to increase the number of our networks from presently 164,” he said. DHL has also built a new warehouse on a 17,000 square meter plot of land in Cimanggis. The facility is used for consolidating and keeping packages

before being redistributed to 300 distribution networks and four companies in the area. The warehouse has docks enough to accommodate 176 containers a day or 64,240 a year. Its strategic location meanwhile will make it possible for quick deliveries to be done across Jakarta and provide easier access to the main point of exports activities, he said. He said the new warehouse would complete other special warehouses in Cikarang, Marunda, Sunter, Sentul and Cililitan that support customers in automotive, retail and high-tech customers.

SBY Meet with Top German Investors President Susilo Bambang Yudhoyono met with chief executive officers of top German companies as part of his working visit in the country, Trade Minister Gita Wirjawan said. “The President met with three to four CEOs of Volkswagen, Ferostaal, Accor and Siemens which plan to make large investment in Indonesia,” he said. Teuku Faizasyah, presidential aide for international affairs, said in a press statement released on Thursday evening the President left for Berlin on Saturday. “During his visit in Germany, the President will hold bilateral talks with the German President and Chancellor. The two bilateral talks will discuss a follow-up to comprehensive partnership launched by the Indonesian President and the German Chancellor in Jakarta on July 10, 2012,” he said.

The President met with three to four CEOs of Volkswagen, Ferostaal, Accor and Siemens which plan to make large investment in Indonesia.” Gita Wirjawan Trade Minister At the bilateral talks with the German Chancellor, the two leaders will announce a list of figures from the two countries who will become members of the Indonesia-German Advisory Group (IGAG), he said. In addition, they will also discuss in details the priorities of cooperation in the fields of trade,

investment, health, education, research, technology, and defense industry. Also high on the agenda of the meeting will be cooperation related to food security, energy security and transportation, he said. While in Germany, Yudhoyono will also receive courtesy calls from former German president Horst Kohler, German Foreign Minister Guido Westerwelle, and Berlin Mayor Herr Klaus Wowereit. Yudhoyono will also open an international tourism bourse, along with the German chancellor. Indonesia is a a partner country in the exhibition. He will also meet with the Indonesia diaspora community in Germany during his stay. From Germany, Yudhoyono will continue his trip to Hungary on March 5 for a four-day visit.

Foreign Investors Eye State Bonds Foreign investors` interest in state rupiah-denominated bonds has continued to rise in line with increasing yields reaching a record level this month. Economic observer Gundy Cahyadi said here on Thursday the Inter-Dealer Market Association (IdMA) index had shown state IDR-denominated bonds had continued to rally in February. “Overall price returns have also made the highest record. At the same time we have also seen how foreign portfolio investment rose again this month,” the economist from OCBC NISP Bank said. The yield of the state bond in January 2012 was recorded at 113.4 points while in December 2012 at 117.7 and this month at 117.97. Foreign bond ownership in January 2012 meanwhile reached 32% and in December 2012 32.9% and this month 33.5%. Gundy said the hike showed that the flow of portfolio investment to the state bond market had remained at a positive level

since September 2012 or in the past six months. He said the increase in the yield and investors` interest was driven by the rupiah exchange rate that had continued to be pressured due to the country`s balance of trade which remained deficit and the fact that world economic conditions had not yet recovered. “Why foreign investors` interest in the state bond has remained high because the world`s liquidity is still very high especially driven by the world`s central banks that continued impressing to be accommodative,” he said. He said the total value of the financial balance of main central banks such as the Fed, the European Central Bank, the Bank of England and the Bank of Japan had continued to rise recently giving them bigger courage to seek higher yields. “The Indonesian government bond is one of the assets that has been considered attractive, moreover the rate of inflation in the country is still very low to

make the real interest rate remain within a positive territory unlike that in most of the advanced countries right now,” he said. He said the desire to buy the government bond was projected to remain strong in view of the huge liquidity in the world and the low inflation rate in Indonesia. “In theory if the domestic inflation is moving up the yield of the government bond must also rise to maintain the real interest rate to remain at the same level,” he said. With regard to that Gundy said there had been signs that underlying inflation pressures had started to increase due to inflation in the food group that has started to rise and stories about natural gas price hikes and possibly oil prices later as well which is still open. “Our prediction is the rate of inflation this year will remain at between 6.0 and 6.5% above the government`s target set at 3.5 to 5.5% percent and last year`s average of 4.3%,” he said.

“The warehouse in Cimanggis is the third built-to-suit warehouse offering special features designed for customers operating in daily consumer goods industries,” he said. DHL Supply Chain Indonesia Managing Director Abdul Rahim Tahir meanwhile said DHL would continue to strengthen its customers foothold in Indonesia by continuously expanding its service to industries that have developed fast in the country such as in consumption, automotive, energy, retail and technology sectors. “We have developed special expertise in the fields and have ap-

plied our best experience at local levels,” he said. Besides investing in operational areas, he said, DHL has also been committed to actively supporting the careers of its workers by providing training and development programs. Right now as many as 40 employees are following a diploma program at the Chartered Institute of Transport and Logistics in UK,” he said. He said since 2012 DHL has set up four operational simulation centers and trained more than 1,000 workers, adding workers at all levels may participate in talent management programs at locla, regional or global levels.

Minister Upbeat on Energy Investments Energy and mineral resources minister Jero Wacik said here on Monday “in 2012 investment in the sectors rose to $33.7 billion and this year it is expected to rise further to $38.9 billion.” He said last year`s hike from the previous year was proof that Indonesia was really attractive for investment. “It is proof how attractive is Indonesia in the eyes of both national and foreign investors,” he said. The minister admitted that there were still cases hindering investment but in general the investment situation was good as reflected by the inflow of foreign investment that reached $33.7 billion in 2012. Investment in the energy sectors include oil, natural gas, minerals, coal and renewable energy sources.

Jero Wacik Last year, he said, BP from Britain decided to increase its investment in Indonesia to $12 billion to develop its field in Tangguh, Papua. Chevron from the US meanwhile had also expressed its commitment to increasing its investment by $10 billion to develop its natural gas fields, he said. Eramec from France also would start its new investment project worth $5 billion, he added.

March 2013 Vol.2 No. 3

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Infrastructure

18 MPA Projects Accelerated by 2014 www.tender-indonesia.com

he government is strengthening coordination with Japan International Cooperation Agency (JICA) in order to accelerate the implementation of 18 Metropolitan Priority Area (MPA) projects, which have a total estimated investment value of Rp208.2 trillion. Lucky Eko Wuryanto, Deputy for Infrastructure and Regional Development of the Coordinating Ministry for Economic Affairs, said that the MPA Master Plan covers 45 infrastructure projects that are targeted to be completed in 2020. Of the total projects, the government and JICA has set 18 fast track projects to have their construction works undertaken no later than 2014. “JICA came to discuss the issue of targeted acceleration. There are 18 projects. They want to get some help from us, so we pursue coordination for this

We will provide support ranging from feasibility study, design, and even construction. So it is not only funding.” Hiroto Arakawa JICA Vice President

acceleration effort,” Lucky said. There are some MPA fast track projects that are already underway, he said, such as the construction of mass rapid transit (MRT), development of Soekarno-Hatta Airport, and Tanjung Priok Port access road. “They ask for help so that the Java-Sumatera transmission project can be faster, asking whether the requested loan amount is sufficient or not,” he said. Based on data from JICA, the 18 MPA fast track projects

include the development and expansion of the container terminal in North Kalibaru worth Rp24 trillion, development of a new port in Cilamaya valued at Rp14.9 trillion, Smart Community Rp300 billion, Soekarno-Hatta Airport train Rp12.5 billion, development of Soekarno-Hatta Airport worth Rp16.4 trillion, and MRT Rp33.3 trillion. Lucky said that most of the hurdles confronting the projects are related to land. As a result, most of the projects have just entered the feasibility study phase. Other constraints include permitting and funding commitments. JICA Vice President, Hiroto Arakawa, said that JICA will provide assistance ranging from feasibility study, construction, to the operations of MRT. “We will provide support ranging from feasibility study, design, and even construction. So it is not only funding.”

Tanjung Priok Port access road, one of MPA fast track projects that is already underway.

Infrastructure Development: SBY Asks Local Governments to Involve Private Sector www.presidenri.go.id/Rusman

The central government has asked local governments to increase the involvement of the private sector to spur local infrastructure development. President Susilo Bambang Yudhoyono (SBY) said there are two steps that local governments can undertake to increase the capacity of infrastructure in their respective regions, despite the budget constraints faced by the government. First, local governments can reduce the burden of routine expenditure, including personnel expenditure, in order to open the fiscal space in the state budget (APBN) and local government budgets (APBD). The fiscal space can be used by local governments to increase capital expenditure allocations for local infrastructure development. Second, local governments can invite private investors to

get involved in infrastructure development, especially for projects that have commercial value. Private firms can be engaged in public private partnership scheme. “In order not to charge everything to the state budget, private investors can be invited to build infrastructures that have commercial value,” he said. SBY warned that the plan to involve the private sector must also be accompanied with business and investment climate improvements through regulatory changes and policies that could attract potential investors. In addition, local governments should facilitate licensing so that the cooperation established will not be disrupted by administrative and bureaucratic issues.

Such was a summary opinions from Chief Economist of Bank Mandiri, Destry Damayanti; Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), Anindya Bakrie;

Tanjung Mas, Semarang, to the amount of Rp100 billion. In addition, Pelindo III will invest in South Kalimantan (Ports of Banjarmasin and Kota Baru), Central Kalimantan, West Nusa Tenggara and East Nusa Tenggara. Approximately half of the total investment funds, Wahyu continued, will be used to develop the Port of Tanjung Perak. Currently, the queue of ships to do loading and unloading still takes two to three days; subsequently the target is to minimize the loading and unloading time. “Right now, construction activities are underway at the Port of Tanjung Perak. Meanwhile, its operations are expected to be initiated in early 2014,” he said.

Trans-Sumatra Project: Two Segments Get Priority SBY warned that the plan to involve the private sector must also be accompanied with business and investment climate improvements through regulatory changes and policies that could attract potential investors.

Java, although its land area accounts for only seven percent of Indonesia’s total land area, has a contribution to GDP that reached 57.63%. This disparity occurs because secondary and tertiary economic activities are concentrated in Java, while the other islands rely solely on primary economic activities that are natural resource-based. Deputy Minister of National Development Planning (PPN)/ Bappenas, Lukita Dinarsyah Tuwo; Deputy Minister of StateOwned Enterprises (BUMNs), Mahmuddin Yasin; and Deputy for Implementation and Investment Control of BKPM, M. Azhar Lubis. Based on data from the Central Statistics Agency (BPS), structurally, the map of the Indonesian economy cannot be shifted for the next 30 years since Java has become too dominant in terms of economic activities. Of the GDP amount of Rp 8,241.9 trillion, Java contributes 57.63%. Sumatra is able to contribute 23.77% to the national GDP, while Kalimantan

PT Pelabuhan Indonesia (Pelindo) III has budgeted investment funds worth Rp6.1 trillion this year. Allocation of the funds is to increase loading and unloading productivity and improve services at the ports under their management, which, in turn, will have a positive impact on the economy. “We hope to stimulate the real sector and absorb more labor, especially workers from the local areas,” said Finance Director of Pelindo III, Wahyu Suparyono. The funds will be disbursed, among others, for the development of Tanjung Perak Port, Surabaya, to the value of Rp3.1 trillion. The funds will also go towards revamping the Port of

Boosting Infrastructure and Incentives Outside Java The government should increase incentives and boost infrastructure outside Java, especially in eastern Indonesia, as the current spatial inequality is getting worse. Banks are also encouraged to open more branches in the east. Spatial Inequality between the western and eastern parts of Indonesia can be seen from contribution to the 2012 gross domestic product (GDP). Java, although its land area accounts for only seven percent of Indonesia’s total land area, has a contribution to GDP that reached 57.63%. This disparity occurs because secondary and tertiary economic activities are concentrated in Java, while the other islands rely solely on primary economic activities that are natural resource-based.

Pelindo III Budgets Investment of Rp 6 Trillion in 2013

only has 9.3%, Sulawesi 4.73%, Bali-Nusa Tenggara 2.51% percent, and Maluku-Papua 2.06%. Java accounts for 65.9% of secondary sectors, such as industry, electricity, gas, water supply, and construction. Java also controls 66.15% of the tertiary sector activities, such as trade, transport, and finance. Java’s domination in the secondary and tertiary sectors has been powered by the availability of adequate infrastructure and human resources (SDM). In contrast, 74.2% of economic activities outside Java are sourced from the primary sectors, such as

agriculture and mining. This gap in infrastructure and human resource quality is what makes the production sector outside of Java can only rely on the primary sector. It is also this inequality that has made the velocity of money and investment to flow more in Java. Of the total Rp221 trillion actual foreign direct investment during 2012 as reported by BKPM, West Java took up foreign investment to the tune of $4.2 billion, DKI Jakarta $4.1 billion, Banten $2.7 billion and East Java $2.3 billion. From the banking side, some 72.38% of the 3,461 bank offices are located in Java and

Sumatera. Meanwhile, bank office networks in the large islands, such as Kalimantan and Sulawesi, only account for about 8-8.5% of the total bank branches. The concentration of banking networks also leads to uneven spread of loan provisions. At the end of 2012, Java absorbed Rp 2,003 trillion (73.97%) of the total bank credit of Rp2.707 trillion. Of the total third party funds amounting to Rp3.225 trillion, Java was responsible for Rp2.450 trillion, or 75.98%. The benefits of funds from the State Budget (APBN) have also not yet been felt maximally. Channeling of the general allocation fund (DAU), which becomes part of the regional transfer funds, has remained concentrated in Java and Sumatera. Of the total DAU amount of Rp311 trillion, Java got an allocation of Rp102.31 trillion (33%) and Sumatera Rp83.8 trillion (27%).

In the study conducted by the Ministry of Public Works, trans-Sumatera highway is divided into seven main segments, namely Lampung-Palembang, PalembangPekanbaru, Pekanbaru-Medan, MedanBanda Aceh, Palembang- Bengkulu, Pekanbaru-Padang, and Medan-Sibolga. Ministry of Public Works has noted there are two trans-Sumatera toll road projects whose construction gets a priority because they have good internal rate of return (IRR). The two prioritized projects are the 358kmlong Lampung - Palembang segment, with an IRR of 17%, and the 548km-long Pekanbaru Medan segment, with an IRR of 16%. However, these levels of IRR remain far from feasibility. Ideally a segment is considered financially feasible if it has an IRR of at least 18%, hence the trans-Sumatera toll road greatly needs funding support from the government for all its segments. Head of Public Communication Centre of the Ministry of Public Works, Danis Sumadilaga, said that his institution has scheduled preparations of transSumatera construction to take place during 20122014. The preparations are being done by assessing the feasibility of construction and making an estimation of the amount of government support to realize the toll

road that will connect Banda Aceh with Lampung. In the study conducted by the Ministry of Public Works, transSumatera highway is divided into seven main segments, namely Lampung-Palembang, Pa lemba ng-Peka nba r u, Pekanbaru-Medan, MedanBanda Aceh, PalembangBengkulu, Pekanbaru-Padang, and Medan-Sibolga. “The first four segments are prioritized, and not yet for the three other segments. Although they have the prioritized status, based on the IRR calculations, there are perhaps only two for the time being,” Danis said. He explained the IRR of the segment from Lampung towards Palembang reaches 17% due to the reasonably high mobility of vehicles from the Port of Bakauheni. The number of vehicles moving towards Palembang also makes the segment one of the priorities. Meanwhile, the IRR of the Pekanbaru-Medan segment is quite good (16%) because of the two-way mobility from Medan to Pekanbaru and vice versa. Furthermore, there are two major ports in the area, thereby increasing the feasibility of the road segment.

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March 2013 Vol.2 No. 3

Transportation

Airport Train: Tender for Station Begins in July 2013 The airport railway line to be built by PT Kereta Api Indonesia will start at Manggarai Station and end at Soekarno-Hatta Airport.

T Angkasa Pura II is targeting to hold a tender for the construction of the Soekarno-Hatta Airport Railway Station, which is worth hundreds of billions, in June - July 2013. The plan is for this special train station project to commence after completion of the tender process. President Director of PT Angkasa Pura (AP) II, Tri S. Sunoko said that his company is still fi-

nalising detailed engineering design (DED) for the airport train station project. The company cannot yet confirm the station’s total area and investment value because these are still being discussed. In due course, according to Tri, Soekarno-Hatta Airport Train Station will integrate a number of terminals, including Terminal 1 and Terminal 2, with the concept of integrated building. The station will be located be-

tween Terminal 1 and Terminal 2, or on the path towards the TKI [Indonesian workers overseas] special terminal. The concept of integrated building presents an inter-terminal connector building offering one-stop services. “Compared to the train station in Kuala Namu Airport, this [Soekarno-Hatta Airport Station] is more modern. It will be integrated with a [shopping] mall. The station is modern and already [equipped with] technology and information,” he said on the sidelines of a seminar on Soekarno-Hatta Airport Cargo Village, Tuesday. The airport railway line to be

built by PT Kereta Api Indonesia will start at Manggarai Station and end at Soekarno-Hatta Airport. “Currently, KAI is conducting land acquisition, while we are preparing the station,” he said. He made an estimate that the construction of the station will be completed in early 2014, so that, perhaps, the train can be commissioned in mid 2014. Meanwhile, PT Kereta Api Indonesia (KAI) said that it is preparing a tender for the building of Soekarno-Hatta Cengkareng Airport railway line. The track being prepared, according to President Director

of KAI Ignatius Jonan, is from Batu Ceper to Soekarno-Hatta Airport in Cengkareng. “I cannot yet reveal all, land prices may go up again,” he said. Makmur Syaheran, Commercial Director of PT Railink, a subsidiary of PT KAI and PT AP II, said that his company only handles the construction of Soekarno-Hatta Airport railway facilities and is now in the process of holding a tender for the procurement of 60 units of the airport train. A number of foreign investors have participated in the tender and the winner will be announced next year.

Garuda Indonesia, Etihad Airways Offer More Codeshare Flights, New Destinations DOK. Garuda Indonesia

East, Europe and beyond new access to Western Australia. Garuda Indonesia President & CEO Emirsyah Satar expressed his approval of the network expansion. “The agreement signed in October 2012 has given Garuda Indonesia passengers greater accessibility to travel to eighty destinations in fifty countries around the world served by Eti-

(From left to right) Khaled Al Mehairbi, SVP Government and Aeropolitical Affairs UAE; James Hogan, President & CEO Etihad Airways; Emirsyah Satar, President & CEO Garuda Indonesia; Salman Al Farisim, RI Ambassador to UAE.

Garuda Indonesia and Etihad Airways have announced a number of new codeshare destinations in Indonesia, Europe, the Middle East, Singapore and Australia. The Abu Dhabi-based airline’s EY code is now on Garuda Indonesia flights between Jakarta and Singapore, Denpasar Bali, Manado, Surabaya, Balikpapan and Makassar and between Abu Dhabi and Amsterdam. Garuda Indonesia has also placed its GA code on Etihad Airways’ flights to five new cities, namely Dusseldorf, Frankfurt, Munich, Bahrain, Milan and Brussels. Garuda Indonesia and Etihad Airways customers will benefit further from June 21 this year when Garuda Indonesia increases frequency between Jakarta and Abu Dhabi and onwards

The agreement signed in October 2012 has given Garuda Indonesia passengers greater accessibility to travel to eighty destinations in fifty countries around the world served by Etihad Airways, from Indonesia.” Emirsyah Satar President & CEO Garuda Indonesia to Amsterdam from four to six flights weekly. This will bring to 13 the total number of weekly flights between the capital cities of Indonesia and the UAE.

In another significant move, from 21 June 2013, Etihad Airways will re-time its flights between Jakarta and Abu Dhabi to offer seamless connectivity to and from even more destinations in the airline’s global network. This will include Amman, Basra, Erbil, and Kuwait in the Middle East; Athens, Istanbul and Larnaca in southern Europe; Astana, Almaty, Moscow and Minsk in eastern Europe; Nairobi and Johannesburg in Africa; and Sao Paulo, Washington, New York JFK, Chicago and Toronto in the Americas. Also in June, Garuda Indonesia will commence services between Jakarta and Perth, which will be operated with the EY code. These flights will be timed to connect with services to and from Abu Dhabi, giving customers of both airlines in the Middle

AP II Builds Cargo Terminal Worth Rp 2 Trillion The state company managing airports in the western part of Indonesia, PT Angkasa Pura (AP) II, will build a cargo terminal (cargo village) worth Rp 2.1 trillion in the SoekarnoHatta Airport area, Cengkareng, Tangerang, Banten. AP II president director, Tri S Sunoko, said that the cargo terminal construction is planned to start in 2014 and it can be operated by mid-2016. However, it is hoped that the cargo terminal project can be undertaken concurrently with the construction of its access [road]. “I think it would be useless for us to build a cargo village, if its accessibility is not built. Imagine, if all the vehicles going to the airport take the middle route, how congested the traffic

I think it would be useless for us to build a cargo village, if its accessibility is not built. Imagine, if all the vehicles going to the airport take the middle route, how congested the traffic will be.” Tri S Sunoko AP II President Director will be,” Tri said in Jakarta. Tri said that the cargo terminal will be constructed in response to the rising growth of cargo services. Currently, cargo volume has reached 629 thousand tonnes per year, whereas the existing capacity

is only 500 thousand. “So, at present, the existing cargo capacity at Soekarno-Hatta Airport has exceeded the limit, or over capacity, so there needs to be a new cargo terminal,” he said. Tri said that cargo terminal is a standard facility in a worldclass airport. Therefore, the construction of a cargo terminal should be done immediately. With the cargo village, the growth of cargo services is expected to reach 1.5 million tons per year. With regard to the cargo terminal development funding, AP II has several options. The options include cooperating with strategic partners, both local and foreign. However, determination of the partners will certainly go through a rigorous selection process.

had Airways, from Indonesia,” he said. Meanwhile Etihad Airways President & CEO, James Hogan stated “The cooperation between Etihad Airways and Garuda Indonesia continues to grow and provide benefits to both airlines’ customers, through broader flight networks, greater connectivity between cities and flexible flight schedules.”

Baltic Aviation Academy Starts Cooperation with PT Bandara Praniagatama Aviation training center Baltic Aviation Academy (Lithuania) signed the memorandum of understanding with PT Bandara Praniagatama (Indonesia) regarding aviation training services in Indonesia. PT Bandara Praniagatama is an Indonesian company highly experienced in the field of aviation services and works with Indonesia Air Force (TNI AU), Garuda Indonesia‚ Lion Air, Merpati Airlines, Royal Malaysia Air Force (RMAF), Republic of Singapore Air Force (RSAF) and many others. “Baltic Aviation Academy has a strong focus to develop its business activities in Indonesia. We are glad, to become business partners with PT Bandara Praniagatama. We believe that strong local player, with their network and partners in the background will help us to achieve set goal – to provide high-quality aviation training services for Indonesian airlines and private individuals,” said Egle Vaitkeviciute, CEO of Baltic Aviation Academy. Meanwhile, Navitri Ciptotomo, President Director of PT. Bandara Praniagatama, stated that Baltic Aviation Academy is worldwide known Type RatingTrainingOrganization (TRTO). It has capability to absorb customers’ needs and to create innovative products. Their latest technology helps to provide high quality air crew trainings and aviation business management. “PT. Bandara Praniagatama is more than sure that Baltic Aviation Academy can fulfill our needs through their

Baltic Aviation Academy has a strong focus to develop its business activities in Indonesia. We are glad, to become business partners with PT Bandara Praniagatama. We believe that strong local player, with their network and partners in the background will help us to achieve set goal – to provide high-quality aviation training services for Indonesian airlines and private individuals.” Egle Vaitkeviciute CEO of Baltic Aviation Academy business group and network,” said Navitri. Up to this date Baltic Aviation Academy has trained more than 15,000 aviation professionals. It provides 45 training courses, including type rating training for Boeing 737 CL, Boeing 737 NG, Boeing 747-400, Boeing 757, Boeing 767, Boeing 777, Saab 340/2000, Airbus A320, Airbus A330/340, ATR 42-72, Embraer 135/145, Embraer 170/190, Bombardier CRJ 100/200, Bombardier CRJ 700/900 types of aircrafts. Meanwhile, PT Bandara Praniagatama is specializing in aviation consultation, aircraft leasing, airport management, training program for crews and simulator training, avionic and communication systems, electronic systems, spareparts supply, maintenance and repairs services. Currently this company provides trainings for B 737-300/400; B 737-200; Fokker 27/28/50; A320; C-130.

March 2013 Vol.2 No. 3

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Events Review BREAKFAST DIALOGUE

The Role of Social Enterprise and Social Investment Model in Breaking the Poverty Cycle The President Post/Rians Rivco

Veronica Colondam, CEO and founder of Yayasan Cinta Anak Bangsa (YCAB), defines social entrepreneurs as individuals that initiate social programs that involve sustainable business models.

“E

verybody can be social entrepreneurs. Whatever you do, try to find a social cost that can benefit from your business,” said Veronica at a Breakfast Dialogue held in Financial Club Jakarta. Veronica established YCAB on August, 1999. She started her mission as she believed every child has the right to education and opportunity to be independent, while the fact is 7-8 kids drop out from school per minute, in total of 3 million per year. YCAB focuses on youth development by improving their wellbeing through three areas of concentration: Healthy Lifestyle Promotion (HeLP), education provision (HoLD) and economic empowerment (HOpE). Healthy Lifestyle Promotion (HeLP) focuses on drug abuse and HIV prevention and education in schools endorsed by respective government bodies. House of Learning and Development (HoLD) is the community learning centres (in Indonesia known as “Rumah Belajar”) for underprivileged children and school dropouts through the provision of access to vocational skills, digital inclusion and English literacy. Hands-on Operation for Entrepreneurship/Employment (HOpE) is the economic empowerment arm. In 2009, they started a social investment prototype through an education linked micro loan. It is a “conditional micro loan” where the attainment of education becomes the condition of the access to funds. A micro loan is given to the mothers of students and the female micro entrepreneurs in their community. The idea is to create a stable

Swiss Ambassador Heinz Walker.

Commissioner of BTPN Irwan M Habsjah

Veronica Colondam, the founder of YCAB (Yayasan Cinta Anak Bangsa). income to the families of our students so they can focus in their study. For these very purposes, YCAB builds partnerships among the local communities, businesses, and governments to enable a sustainable and functioning skilled labor market. YCAB was established to love and give each child hope and opportunity, which will enable them to be independent and to transform the world. “We’re in the business of giving hope and opportunity to underprivileged people,” Veronica stated. Over the years, YCAB has evolved into a social enterprise. Since 2009, 100% of public donations go directly to programs. All overhead costs are covered by the profit centers and microloans operation. “So every dollar you give will go directly to people in need,” Ve-

ronica stated. Besides, YCAB also invests in businesses to support its operation through the funds generated from its profit centers and its education linked micro-loans operation. The businesses that have helped sustain YCAB Foundation are the following: PT YADA Indonesia, Terra Zone, Beauty Inc. and YCAB Cooperatives. In 2011, YCAB went global through the establishment of YCAB International, a non-profit organization head-quartered in New York, in order to spread its wings to the Third World and other LDCs (Less Developed Countries) in Asia. In 2012, it invested Rp 13.12 billion in programs, an increase of 79.7% from previous year, 190% increase of primary revenue growth (Corporate Partnership). As of 2012, total beneficiaries since 2009 stand at 2,210,883 people.

KIJA Site Visit & Analyst Meeting The President Post/Heros Barasakti

PT Jababeka Tbk (KIJA) successfully organized an analyst meeting and site visit to its power plant and dry port on February 27, 2013. The event was attended by about 15 analysts from security houses and other institutions, including Bahana Securities, DBS Vickers Securities, Morgan Stanley Asia Indonesia, Credit Suisse Securities Indonesia, and UBS Securities Indonesia. The analyst meeting was kicked off with a presentation by Tim Beekelaar, Investor Relations of PT Jababeka Tbk, and followed by a presentation from Suteja Darmono, Managing Director of PT Grahabuana Cikarang, wholly owned subsidiary of KIJA. Other senior management of KIJA and subsidiaries were present as well. The presentations, which were held at President Executive Club, focused on the recent developments and performance of KIJA as well as prospects and strategies going forward. After the presentations, the group visited KIJA’s power plant and dry port, both considered key projects for the Company’s growth in the future.

Tim Beekelaar, Investor Relations of PT Jababeka Tbk.

Suteja Darmono, Managing Director of PT Grahabuana Cikarang.

Visit to power plant.

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March 2013 Vol.2 No. 3

Pictorial Events Global Thematic Consultation on Disaster Risk Reduction and the Post 2015 Development Agenda The President Post/Rians Rivco

President Susilo Bambang Yudhoyono officially opened the “Global Thematic Consultation on Disaster Risk Reduction and The Post 2015 Development Agenda”, at the presidential palace on February 19 and at the Four Seasons Jakarta on February 20. Present at the event were United Nations officials in Indonesia and the Indonesia Bersatu Cabinet Ministry. President Yudhoyono emphasized the importance of disaster management, to become the focus in high level meeting to formulate a panel of world development scheme post MDG’s.

Jordan Ryan, Assistant Administrator for the United Nations Development Programme. FROM LEFT TO RIGHT: Dr. Kuntoro, Chairman of the National Committee for the Post-2015 Development Agenda, President of the Republic of Indonesia, Dr. Susilo Bambang Yudhoyono, Jordan Ryan, Assistant Administrator for the United Nations Development Programme. Indonesia Bersatu Cabinet Ministers.

Indonesia Fashion Week 2013

Netherlands Foreign Minister Visit Indonesia

The President Post/Rians Rivco The President Post/Rians Rivco

Minister of Foreign Affairs of the Netherlands Frans Timmermans visited Indonesia on February 20 and 21. During the visit, the Minister Timmermans met with Minister Marty Natalegawa and discussed international development and identify areas of bilateral cooperation between the two countries, which is strong and diverse. Timmermans also met with Deputy Governor of DKI Jakarta Tjahaja Basuki Purnama (Ahok), to discuss matters related to water management and cultural heritage.

Netherlands Foreign Minister Frans Timmermans, arrived at Indonesia’s Foreign Ministry office

Minister Frans Timmermans and Marty Natalegawa discussing bilateral relations between the two countries.

Chinese Cultural Extravaganza at President University The President Post/Heros Barasakti

Chinese Cultural Extravaganza held at President University Jababeka, Cikarang on February 22. The event was held to celebrate Chinese New Year and was attended by PresUniv rector Dr. Chandra Setiawan, the chairman of PresUniv Education Foundation, Prof. Ermaya Suradinata, invited guests, and students. In his speech Chandra Setiawan said, “Chinese art has become part of the philosophy of Unity in Diversity in Indonesia.” He further said that the celebration of Chinese New Year is not just for Tionghoa (Chinese) but for the whole people in Indonesia.” The event was enlivened by interesting artist performances from China Heinan Province, among others, Wenjiao (tenor singer), Tiantian (soprano singer), Zhao Chang Do (painter), Wang Bao Hang (instrumental performer), Wushu performance by Wang Wan Xiu, and variety of traditional dances performed by Ruyi, Haisan, Liu Hui Juan, Radiella Letitta and Yingying.

IFW 2013 was held on 14-17 February 2013 at the Jakarta Convention Center, organized by the Association of Indonesian Fashion Designers & Entrepreneurs (APPMI) to promote the fashion industry in Indonesia. IFW 2013 carried out over 500 local brands that represent a wealth of Indonesia creative designer. All products are made with local content but qualified globally. IFW 2013 was adopting a system of B2B (Business to Business). More than 20% of exhibitors were ready to export their goods to meet the needs of buyers who want to buy in large quantities and export them. Indonesia Fashion Week also welcomes retail buyers for resale.

Inauguration of SDN Sukasari 05 Serang Baru, Bekasi by Mattel and Jababeka The President Post/Heros Barasakti

Opening remarks by Dr. Chandra Setiawan

LEFT TO RIGHT: Cucu Yusendriwati, Djafar Achmad, Thsuu Teck Heng, Rohim Sutisna and Srinaning.

Painting souvenirs handover from Zhao Chang Do to Prof. Dr. Ermaya Suradinata and Dr. Chandra Setiawan

Wushu by Wang Wan Xiu

Performance by Wenjiao

Wang Bao Hang instrumental performance

PT Mattel Indonesia with PT Jababeka Tbk re-inaugurated the construction of Elementary School (SDN) Sukasari 05 Serang Baru, Bekasi on February 21. Construction of new classrooms is part of both companies’ CSR program in order to improve education facilities in Cikarang. The inauguration was attended by President Director of PT Mattel Indonesia Thsuu Teck Heng and Senior Manager LPPM Jababeka Djafar Achmad.

March 2013 Vol.2 No. 3

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Pictorial Events Medical Excellence Japan Seminar (Indonesia-Japan Medical Collaboration) The President Post/Heros Barasakti

Medical Excellence Seminar Japan, Indonesia-Japan Medical Collaboration. is a seminar that discussed new treatments for cancer patients. This seminar was held at the Bali Room of Hotel Indonesia Kempinski, Jakarta on February 23. This seminar is the result of the cooperation of the Indonesian government and the Japanese government in the health sector. Prof. Abdul Muttalib and two cancer experts from Japan, Prof. Ryosuke Tsuchiya and Koichi Tanaka, were present as speakers at the seminar. The seminar was also attended by companies that produce cancer therapy tools from Japan, namely Hitachi, Toshiba, and Sumitomo Heavy Industries, which brought the latest technology of cancer detector and treatment tools.

Prof. Koichi Tanaka invites Indonesians to prevent cancer by eating fruit and vegetables.

Presentation by Prof. Abdul Muttalib.

Indonesia Most Admired CEO 2013 by Warta Ekonomi The President Post/Reza Ganesha

Prof. Ryosuke Tsuchiya delivers his presentation about cancer treatment centers hospital in Japan

Wildlife Protection Series: Dolphins! The President Post/Rians Rivco

The United States and Indonesia are working with NGOs to rehabilitate an injured dolphin and invite the public to pay more attention to the environment. The discussion was held on February 5 at @america, entitled: “Wildlife Protection SeriesDolphins!” and was attended by the U.S. Ambassador, the Minister of Forestry and environmental activists. “It takes the cooperation of all of us to stop the trade and exploitation of animals in Indonesia. Humans, animals, and the whole of nature is a unity. The destruction of animals will affect the extinction of human species,” said Zulkifli Hasan, Minister of Forestry.

Emirsyah Satar is elected as one of Indonesia’s 29 Most Admired CEOs 2013 Warta Ekonomi Magazine named Indonesia’s 29 Most Admired CEO 2013 (IMA CEO 2013). They were chosen through an independent research conducted by Warta Ekonomi Research Team through a survey conducted in 2013. “CEOs who were elected in IMA CEO 2013 have real performance, innovative, full of breakthrough and clean,” said Editor in Chief Warta Ekonomi Muhamad Ihsan at the opening of IMA CEO 2013 at Crown Hotel on February 26.

Indometal 2013 The President Post/Heros Barasakti

TOP: U.S. Ambassador Scot Marciel and Zulkifli Hasan, Minister of Forestry. TOP-LEFT: Minister of Forestry explains the importance to preserve the environment. LEFT: Riyanni Djangkaru, an environmental activist, was also present in the discussion in order to fight against poach and the capture of dolphins to be used as performing animals. Jababeka Cikarang participates in the event.

IABC Gathering Night The President Post/Reza Ganesha

Indonesia Australia Business Council (IABC) held a gathering night for its members at Mercantile Athletic Club on February 21.

Enthusiastic visitors at Indometal 2013. Indometal 2013 was held on 20-23 February 2013, at Jakarta International Expo, Kemayoran. This event is the first international exhibition of metal and steel in Indonesia. Indometal 2013 was organized by Messe Dusseldorf Asia and Wakeni with the support of Messe Dusseldorf in Germany. The purpose of the exhibition is to provide a platform of business and procurement for those engaged in the upstream and downstream industry sectors, from various levels ranging from mining, metals, metallurgy until testing and inspection of materials. The exhibition was attended by more than 250 international companies from 26 countries, such as Austria, China, Italy, Taiwan, and the United Kingdom.

The President Post

LIVING

SECTION C March 2013 Vol 2. No. 3 www.thepresidentpost.com

www.drinkhacker.com

In Italy, Amaro is the Bitter End In Italy, amaro are most often drunk as a digestivo, or digestive, after a meal. It’s part of the culture of the table in Italy. By S. Irene Virbila

Many were developed in monasteries and prized for their medicinal qualities. They can vary from light amber, sweet and aromatic with only a trace of bitterness to inky dark and almost syrupy with a potent kick of bitterness.

remember my first encounter with amaro, the Italian bitter liqueur. It was the first time I went to Italy and had overindulged the night before. “Drink it. You’ll feel better,” my Italian friends urged, handing me a glass of Fernet Branca for its supposed digestive properties. The thick, viscous and extremely bitter liqueur could be enough to put you off the stuff forever. “It’s like swallowing a spoonful of VapoRub,” Mozza general manager David Rosoff describes it, laughing. I can’t disagree. Unlikely as it seems, though, amaro has become a cult item with the mix-master set. Two Italian restaurants in Los Angeles, Osteria Mozza and Sotto, spe-

Mediterranean Diet Beats Low-fat Diet

cialize in collecting some of the harder-to-find examples from all over Italy. It turns out there’s a whole wonderful other world of amari out there — lighter, more subtle examples; mezzo, or medium-bodied; alpine-style with more botanicals; others based on artichokes or rhubarb; as well as Fernet-style amari with a potent dose of the typical bitterness from quinine or cinchona bark from Peru.

generations and include dozens if not hundreds of botanicals and spices collected from all over the world. At a wine shop, bottles run from $16 or $17 up to $60 or so, but most are in the $20 to $30 range. By the glass, in restaurants, an amaro might set you back $10 to $12. Or a restaurateur might offer a complimentary glass of those that are not yet imported into this country.

In Italy, amaro are most often drunk as a digestivo, or digestive, after a meal. Mozza wine director Taylor Parsons (no relation to Food Editor Russ Parsons) remembers when he was living in Lucca, Italy, lunch inevitably ended with coffee and an amaro, never dessert.

In a head-to-head contest, a Mediterranean diet, even drenched in olive oil and studded with nuts, beat a low-fat diet, hands-down, in preventing stroke and heart attack in healthy older subjects at high risk of developing cardiovascular disease. The latest smack-down in the diet wars appears to deal a knock-out blow to the notion that highfat olive oil and tree nuts — walnuts, almonds and hazelnuts — are a no-no for those wishing to improve their health. On the contrary, Spanish researchers concluded that the consumption of extra-virgin olive oil and nuts “were probably responsible for most of the observed benefits” attained by those in the two groups following a Mediterranean diet.

ter-cup a day of one of them. Or they were supplied a liter of extra-virgin olive oil each week and instructed to consume at least 4 tablespoons a day. At the same time, Mediterranean dieters were told they should feel free to drink wine moderately — about seven glasses per week.

The study’s findings, released Monday by the New England Journal of Medicine, also add to mounting evidence contradicting a long-held tenet of dieting to improve health: that all calories are equal. The benefits of the Mediterranean diet were pretty substantial too: compared with a group of 2,450 subjects who were urged to follow a low-fat diet, the 4,997 who followed a Mediterranean diet supplemented either with nuts (2,454 subjects) or with extra-virgin olive oil (2,543 subjects) were 30% less likely to suffer one of the following outcomes: a heart attack, stroke or death attributed to cardiovascular disease. The Mediterranean dieters were almost 40% less likely than the low-fat dieters to have a stroke during the follow-up period. And the superiority of the Mediterranean diet over a low-fat diet was consistent across virtually all sub-categories of participants – men, women, older and younger subjects, and those with or without every risk factor for cardiovascular disease. Only among the small group of sub-

jects w ithout hy p e r t e n sion did a lowfat diet show better results. All of the trial’s subjects were ages 55 to 80 (women were 60 to 80) and either had type 2 diabetes or satisfied at least three of the following criteria: they were active smokers, were overweight or obese, had a family history of premature heart disease or had hypertension or worrisome cholesterol readings. After randomizing the subjects to the low-fat diet group, the Mediterranean diet with tree nuts group or the Mediterranean diet with olive oil group, researchers followed the subjects for a median of 4.8 years to ensure they were adhering to their recommended regimen and to gauge how many in each group suffered a heart attack or stroke or died of cardiovascular disease. Many studies have suggested the Mediterranean diet -- which is rich in fatty fish, fruits, vegetables and fatty acids -- trumps other diets meant to induce weight loss when the measure of success is heart health. But the cur-

rent trial is the first to meet the “gold standard” of biomedical research, in which large numbers of patients are randomly assigned to distinct groups, followed for several years and compared on the basis of predetermined outcomes. The study’s findings “blow the low-fat diet myth out of the water,” said Cleveland Clinic cardiologist Steven Nissen, who was not involved in the current research. Nissen, an expert on the effects of drugs and nutrition on cardiovascular risk, called the study “spectacular” and touted the findings as impressive. Almost entirely missing from the Mediterranean dieters’ daily intake was red meat and meat products. Those subjects were urged to keep to a minimum sodas and fats that are in partially solid form and to limit consumption of commercially baked sweets and pastries to no more than three times a week. They were given a weekly supply of either almonds, walnuts or hazelnuts and told to eat about a quar-

Now the cocktail crowd is driving the surge in interest as well. At first, there was a macho component. But now there’s a cross-pollination as mixologists experiment with subbing amaro for Campari or sweet vermouth in cocktails. “An old-fashioned made with amaro is really fun,” says Parsons. “You can make a million different Manhattans with the lighter styles substituted for sweet vermouth.” latimes

Doctors Debate on Smoking Marijuana By Mary MacVean

By Melissa Healy

No question, it’s Italians and Italophiles who are most likely to order a glass after dinner at Osteria Mozza or Sotto. It’s part of the culture of the table in Italy, and when they’re dining at these two Italian restaurants, they want the full experience.

Aside from those guidelines, subjects in the Mediterranean diet arms of the trial had an “energy unrestricted” diet: They did not have a calorie limit. Low-fat dieters were told to avoid nuts and vegetable oils of all kinds (including olive oil), to limit their storebought sweets to fewer than one per week and to remove visible fat from all meats. In addition to fruits and vegetables, they were encouraged to eat three servings of low-fat dairy product and three or fewer servings of bread, potatoes, pasta or rice each day. But since the study was conducted in several centers in Spain, even the low-fat dieters tended to eat lots of fruits, vegtables and leaner meats. The researchers found that, while eating slightly more legumes and fish, the Mediterranean dieters largely differed from the low-fat dieters in their nut-andolive-oil consumption. While their suspicions fell on nuts and olive oil, the researchers were wary of ruling out the contribution of other elements of the Mediterranean diet to improved cardiovascular health. “Perhaps there is a synergy among the nutrient-rich foods included in the Mediterranean diet that fosters favorable changes” in the phsyiological responses, such as inflammation and insulin insensitivity, that give rise to cardiovascular disease, the researchers wrote. latimes

Perhaps you know whether you’d want to use marijuana to relieve severe pain or nausea. But if you were a doctor, what would you tell patients who asked about taking something that’s against federal law? The New England Journal of Medicine poses the question to its readers and on Wednesday presented arguments for and against from doctors. The hypothetical patient is 68-year-old Marilyn, who has cancer and who says the standard medications are not relieving her pain and nausea. She lives in a state that allows medical marijuana use and says her family could grow it. She is asking her primary care doctor for advice. “I endorse thoughtful prescription of medicinal marijuana for patients in situations similar to Marilyn’s,” writes Dr. J. Michael Bostwick, representing one side.

Doctors should turn to marijuana only when “conservative options” fail, he says. “Simply to allow a patient with uncontrolled symptoms of metastatic breast cancer to leave the office with a recommendation to smoke marijuana is to succumb to therapeutic nihilism,” Drs. Gary Reisfield and Robert DuPont write on the other side. Bostwick says that federal policy has not kept pace with scientific advances and that “largely anecdotal but growing literature supports” the efficacy of marijuana for pain and nausea that don’t respond to ordinary treatments. With 18 states making legal medicinal marijuana, “the cannabis horse long ago burst from the federal jurisdictional barn,” Bostwick writes. He notes that the abuse of the state laws by some doctors should not prevent all doctors from being able to prescribe marijuana. He also notes that the federal law has meant that no Food and Drug Administration trials have looked at it in comparison to traditional drugs.

If Marilyn had never tried marijuana as a recreational drug, Bostwick writes, she might not like its “psychoactive effects,” but if she feels better with it, “she would channel 5,000 years of medical history.” In the “no pot” camp, Reisfield and DuPont argue that smoking marijuana is “nonmedical, nonspecific and potentially hazardous.” The cannabis plant, they write, has hundreds of pharmacologically active compounds that could lead to unwanted effects. Among the several possible negative results, they write, are effects on Marilyn’s cognitive and psychomotor abilities, such as driving, and effects on her health at a time when her immune system is compromised. While the doctors say the issues surrounding marijuana should be discussed with Marilyn, “there is little scientific basis for recommending that she smoke marijuana for symptom control.” latimes www.mlive.com

Medicinal marijuana supporters

March 2013 Vol.2 No. 3

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Health

Doctors List Overused Medical Treatments Nearly 100 medical procedures, tests and therapies are overused and often unnecessary, a coalition of leading medical societies says in a new report aimed at improving healthcare and controlling runaway costs.

he medical interventions — including early caesarean deliveries, CT scans for head injuries in children and annual Pap tests for middle-aged women — may be necessary in some cases, the physician groups said. But often they are not beneficial and may even cause harm. “We are very concerned about the rapidly escalating cost of healthcare,” said Dr. Bruce Sigsbee, president of the American Academy of Neurology, which was among the 17 medical groups contributing to the list of procedures. “This is not healthy for the country, and something has to be done.” Development of the list, which was organized by the American Board of Internal Medicine’s ABIM Foundation, is a minor milestone in efforts to enlist physicians to rein in unnecessary services, a leading cause of the skyrocketing healthcare tab. The United States spends more than $2.5 trillion a year on healthcare, or more than $8,000 per person. That is 21/2 times as much as the average spent by other industrialized nations, according to data collected by the Organization for Economic Co-

operation and Development, whose members include the richest nations. Studies show that the high cost of U.S. healthcare is driven in large part by prices. American hospitals and doctors charge much more than their international counterparts. But U.S. physicians also perform many more tests and elective procedures. For example, American doctors order nearly twice as many CT and MRI exams as doctors in other industrialized countries do. They perform more knee replacements and deliver more babies by caesarean section. Some of this extra care may result in better outcomes. The U.S. has some of the highest cancer survival rates in the world, for instance. But America lags far behind other industrialized countries in caring for children with asthma and adults with chronic bronchitis and emphysema, among other illnesses. A growing number of experts have concluded that much medical care in the U.S. is wasteful and even dangerous for patients. A 2012 report from the independent Institute of Medicine estimated total waste in the system at 30%, or $750 billion a year.

“Millions of Americans are increasingly realizing that when it comes to healthcare, more is not necessarily better,” said Dr. Christine K. Cassel, president of the ABIM Foundation. For example, despite the popularity of early caesareans, there is growing evidence that babies born before 39 weeks’ gestation have higher risks of learning disabilities and even death. Whether, or how quickly, the initiative to curb unnecessary procedures will yield results remains unclear. Persuading doctors to be more conservative can be difficult, said Dr. Lowell E. Schnipper, an oncologist at Boston’s Beth Israel Deaconess Medical Center and chairman of a national task force on controlling the cost of cancer care. “These diseases can be fatal,” Schnipper said. “The stakes are high. And families very often push the doctor, who wants to take care of the patient as best he or she can.” Recent warnings from the U.S. Preventive Services Task Force that screenings for breast and prostate cancers often do more harm than good drew huge backlashes from patient advocates. Similarly, the Obama administration’s efforts to raise aware-

Controversial Bird Flu Research to Resume Bird flu researchers said Wednesday that they would end a self-imposed moratorium on controversial experiments to determine how the deadly H5N1 virus might mutate and gain the ability to spread easily among humans. In a statement published online by the journals Science and Nature, 40 scientists said they were poised to resume their investigations — but only in countries that have established clear rules for conducting the research safely. The U.S., which is the largest funder of influenza research, is not yet among those nations. “We want to resume virus transmission studies because we believe this research is important to pandemic preparedness,” said University of Wisconsin virologist Yoshihiro Kawaoka, one of the scientists whose work prompted biosecurity experts to call for new restrictions on flu research. There have been only 610 confirmed human cases of bird flu since 2003, but 59% of those people have died. In nature, the virus has very limited ability to spread directly from person to person. Scientists fear that just a few key genetic mutations could change that, creating the potential for a dangerous flu pandemic. Kawaoka and Ron Fouchier, a virologist at the Erasmus Medical Center in the Netherlands, have been studying some of the mutations that could make bird flu more transmissible in mammals. In separate experiments, both men developed strains of H5N1 that could pass between ferrets in the tiny droplets expelled by coughs and sneezes. Ferrets are used in influenza studies because they respond to flu much as people do. Kawaoka and Fouchier were on the verge of publishing their study results until late 2011, when their work caught the attention of a government advisory panel that assesses potential risks of biological research. Worried that the flu strains could prove dangerous if they escaped the lab, the U.S. National Science Advisory Board for Bio-

There have been only 610 confirmed human cases of bird flu since 2003, but 59% of those people have died. In nature, the virus has very limited ability to spread directly from person to person. Scientists fear that just a few key genetic mutations could change that, creating the potential for a dangerous flu pandemic. security asked the scientists — and editors at Science and Nature, where their work had been accepted for publication — to redact portions of the research. It was an unprecedented move that many scientists saw as a threat to academic freedom and debate. The researchers announced on Jan. 20, 2012, that they would suspend their work for 60 days to allow time for discussion of the risks and benefits of the research. U.S. and foreign officials, the World Health Organization and scientific groups met several times to delineate policies for continuing the research safely, including biosecurity requirements. In the end, the moratorium lasted for just over a year. Both Kawaoka and Fouchier signed the statement published Wednesday. In a conference call, the researchers said that continuing the study of H5N1 under appropriate laboratory conditions was crucial, because it could help them better understand how the virus becomes airborne — and let public health officials get ahead of potentially dangerous mutations that might arise in birds and mammals, perhaps by culling infected animals or using the information to develop vaccines. “Once these mutations start popping up in nature, countries should eradicate it aggressively,” Fouchier said. Kawaoka emphasized that

only nine changes in H5N1 made the virus transmissible in Fouchier’s experiment. “Nine is almost none,” he said, because flu mutates very easily. “The risk exists in nature already. Not doing the research is really putting us in danger.” Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, which funded Fouchier’s and Kawaoka’s experiments, agreed that H5N1 transmission research should resume. He said that a framework to help the U.S. National Institutes of Health decide which H5N1 transmission studies should receive funding in the future should be ready “within a relatively short period of time — I hope measured in weeks.” Kawaoka and Fouchier said they believed research in other European countries, as well as in China and Canada, could now move ahead, and that Japan, like the U.S., still had not released guidelines. Michael Osterholm, an infectious disease researcher at the University of Minnesota and a member of the U.S. biosecurity panel, said he was still worried that publishing the results of H5N1 experiments could give scientists who don’t have appropriate facilities and expertise a “blueprint” for doing dangerous research. “We may tell people not to do it, but if they go ahead and the virus escapes, it’s done,” he said. “You cannot contain influenza.” latimes.com

The medical interventions — including early caesarean deliveries, CT scans for head injuries in children and annual Pap tests for middle-aged women — may be necessary in some cases, but often they are not beneficial.

ness about unnecessary medical care and to improve data on best medical practices as part of the 2010 healthcare law prompted many Republicans to characterize the ideas as rationing.

But Dr. Manoj Jain, a leading health quality advocate in Memphis, Tenn., said more aggressive efforts may be needed to reduce wasteful and dangerous medical practices.

Like many experts, Jain advocates more evaluation of physicians and new ways to pay for healthcare that reward better outcomes and higher efficiency instead of the current fee-for-ser-

vice system, which pays doctors for every procedure they do. “If we really are going to bend the cost curve, we have to get really serious,” Jain said. latimes.com

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March 2013 Vol.2 No. 3

Tourism

Indonesia to See Robust Tourism Trade at ITB Berlin www.publituris.pt

Indonesia has participated in the travel trade expo since 1967, playing a significant role over the years, and now it is the first Asian country to be named an official partner country for ITB Berlin 2013.

By becoming an official partner country for ITB Berlin 2013, the government of Indonesia will attempt to capture the European tourism market.”

ndonesia expects to see robust tourism trade at the Internationale TourismusBorse Berlin, better known as ITB Berlin, in Germany this year. Recognised as the world`s largest travel trade expo, ITB Berlin will be held at the Messe Berlin International Convention Center for five days from March 6-10, 2013. Indonesia has participated in the travel trade expo since 1967, playing a significant role over the years, and now it is the first Asian country to be named an official partner country for ITB Berlin 2013. “By becoming an official partner country for ITB Berlin 2013, the government of Indonesia will attempt to capture the European tourism market,” Tourism and Creative Economy Ministry`s promotion director, Esthy Reko Astuti, said. Esthy noted that during the event, European tourists will be encouraged to visit not only the main tourist destination of Bali but also other tourist attractions across Indonesia. “Therefore, we are going to intensively promote other potential tourist attractions in Sumatra, Java, Lombok, Flores, Kalimantan, Sulawesi, Maluku, and Papua,” she went on. According to www.indonesia. travel, President Susilo Bambang Yudhoyono is expected to attend the opening ceremony of ITB Berlin 2013 on March 5. The opening ceremony is also scheduled to be graced by German Chancellor Angela Merkel; Indonesia`s Minister for Tourism and Creative Economy, Mari Pangestu; Governing Mayor of Berlin, Klaus Wowereit; President and CEO of ITB Ber-

Esthy Reko Astuti Tourism and Creative Economy Ministry’s Promotion Director

ITB Berlin 2012. ITB Berlin 2013 is expected to attract more than 170,000 visitors. Of these, some 113,000 trade visitors and 11,000 exhibitors from 180 countries have confirmed their attendance.

lin, Raimund Hosch; and more than 4,500 distinguished invitees, delegates, and members of the press. As the co-host of the Opening Dinner, Indonesia`s cultural troupes of musicians as well as master chefs from a number of provinces around Indonesia will be specially flown in to provide an exquisite Indonesian atmosphere and warm hospitality at the Opening Dinner. Guests and delegates at the Opening Dinner will be warmly welcomed by traditional dancers from Sumatra, Java, Kalimantan, and Bali, who will perform Indonesia`s dramatic and colourful dances to traditional music. Dancers from the province of Aceh will perform the highly synchronized Saman Dance, a

UNESCO Intangible World Cultural Heritage icon. Meanwhile, the deputy minister for Tourism and Creative Economy, Sapta Nirwandar, has said Indonesia would offer great potential for Germany, its foremost trading partner in the European Union. “Our participation in ITB Berlin 2013 will provide a long-term boost to our popularity in the German and international market, and with our wide range of tourism products, we will send out a positive signal to both trade visitors and the general public,” he stated. ITB Berlin 2013 is expected to attract more than 170,000 visitors. Of these, some 113,000 trade visitors and 11,000 exhibitors from 180 countries have

confirmed their attendance. At the same time, 91 companies from various parts of the Indonesian archipelago, and offering all tourism services, will be ready to network with German and other international tour operators, airlines, and agents from the worldwide travel industry. They will also try to answer questions posed by ITB participants and visitors regarding family holidays in Indonesia, covering everything from luxury resorts to diving; surfing; and adventure tours that include meeting orangutans at Tanjung Puting in Central Kalimantan, getting close to Komodo dragons, climbing the rugged volcanoes of Mt. Rinjani on Lombok, and scaling the heights of Mt. Bromo in East Java. Nirwandar said last Decem-

ber that Indonesia would promote itself as a tourist destination not only at ITB Berlin but also at Cruise Shipping Miami and IMEX Frankfurt in 2013, May 21- 23, 2013, a unique international trade show that will host thousands of meetings and will attract incentive-travel executives and buyers from around the world, including Indonesia. More than 8,500 visitors from 90 countries, including thousands of German decision-makers, are expected to attend the world`s third-largest outboundmeetings and incentive-travel market. Meanwhile, the Cruise Shipping Miami event to be held from March 11 - 14, 2013, in Florida in the United States is one of the most professionally organized trade shows in the global cruise industry.

Nirwandar pointed out that funding for the nine major events would be provided by the Marketing Directorate General of the Ministry of Tourism and Creative Economy. “Some Rp607,700 billion will be required for tourism promotion programs and the improvement of Indonesia`s image, among other things. The state budget has allocated Rp2,052 trillion to the Ministry of Tourism and Creative Economy in 2013,” he noted. Besides this, six other tourism events being held at home this year include the Semarang Marathon in Central Java in June; the Pilgrim Tourism event in Surabaya, East Java, in June 2013; the Tour de Singkarak V in West Sumatra in June; Sabang International Regatta II in Sabang, Aceh, in September;

Festival Timoresia II in Ambon, Maluku, in October; and Musi Triboatton II in Palembang, South Sumatra, in November. In light of the intensive promotion, Tourism and Creative Economy Minister Mari Elka Pangestu remarked that Indonesia saw a significant improvement in the contribution of the tourism and creative economy to the nation`s gross domestic product throughout 2012. Marie explained that the tourism industry alone has contributed four percentage points to the GDP growth, amounting to Rp296.97 trillion (some $30.8 billion), and has employed 8.53 million people, which accounts for 7.72% of the country`s overall workforce recruitment in 2012.

W. Sumatra Tourism Focuses On Natural, Cultural Sites With its diverse natural and cultural beauty, West Sumatra is now focusing on promoting its natural and cultural attractions in order to boost tourism in the province. The natural beauty of West Sumatra, with its green landscapes, attracts both foreign and domestic tourists to the province. Speaking at a seminar entitled “Sport Tourism Regulation and Opportunity to Optimize Regional Tourism Potential” in Jakarta recently, West Sumatra Governor Irwan Prayitno said he would promote forest tourism in Anai Valley. “We have the potential to develop forest tourism in places like Anai Valley, which can be promoted as a natural tourism destination in West Sumatra,” he noted. The Anai Valley Nature Reserve has a dense tropical forest, which is home to a diverse species of flora and fauna. Therefore, it is one of the top tourist destinations in West Sumatra. The valley also has three waterfalls, a river and a lake with clear blue water for the tourists to enjoy. “Situated near the road connecting Padang and Bukitinggi cities, Anai Valley is one of the top tourist destinations in West

the tourists can swim in the river and the lake, bathe under the waterfalls, or go hiking,” Irwan continued. Earlier, in the provincial city of Padang in June this year, the governor said the government would also focus on promoting and developing the cultural sites of Minangkabau ethnic community, as part of its efforts to promote tourism in West Sumatra. At the time, he noted that the cultural sites of Minangkabau had immense potential to attract domestic and foreign tourists. “The cultural sites of Minangkabau that will be developed include the areas of Siguntur Kingdo in Dharmasraya district and Minangkabau village in Balai Baliki. We will also focus on agro-tourism,” Irwan said. However, he pointed out that the natural tourism attractions in the province would still need to be developed, especially those that were popular among the tourists. The natural beauty of West Sumatra, with its green landscapes, attracts both foreign and domestic tourists to the province.

Sumatra. Since the Dutch colonial era, the valley has been a nature conservation area, spread over 221 hectares,” the governor said.

He noted that the local government has improved the supporting infrastructure there in order for visitors to engage in sports tourism activities. “Therefore,

“Popular spots such as Kembar lake in Solok district and Harau Valley in Limah-Pulu Kota district must be equipped with the necessary infrastructure and good quality services,” Irwan said. “The tourism sector has not reached its full potential. The promotion and management

of tourism in the area is yet to be optimized,” he added. Last month, Irwan said the West Sumatra provincial government was committed to promoting the regional tourism industry through various efforts, including our cooperation with taxi transport services in Singapore for promotional activities. “The West Sumatra Tourism Office will put stickers on taxis in Singapore to promote tourism in the province,” he stated. “The budget for tourism promotion was set at Rp200 million this year. However, next year, the budget will go up to almost Rp800 million,” he pointed out. Meanwhile, the West Sumatra Cultural and Tourism office declared Bukittinggi city as a tourism development centre in the province, covering the districts of Agam, Tanah Datar, Pasaman and Pasaman Barat. West Sumatra Cultural and Tourism office head James Hellyward said the decision was in line with the government`s master plan on regional tourism development in West Sumatra. “As a tourism development centre for West Sumatra, Bukittinggi will feature various attractions such as recreational centres, centres of scientific development, convention facilities,

culinary centres, healthcare facilities and outbound activities,” he stated. “Agam district is developing and promoting its Mutiara Tiku beaches, using the locations in the corridor linking Bukittinggi, Lake Maninjau, Pariaman and Padang cities,” he noted.

“Tanah Datar, especially Nagari Pandai Sikek, is developing its handicraft centres, using the corridor through Padang, Pandai Sikek and Bukittinggi,” Hellyward continued. “Pasaman district is developing the Rimbo Panti and Tugu Khatulistiwa areas, with focus on cultural tourism.”

Cisarua Safari Park Has New Inhabitant The Taman Safari Indonesia, a park where wild animals are set loose, has a new inhabitant, the anaconda snake (Eunectes murinus) from Amazon, South America, to highlight the Chinese New Year of the Snake. The child anaconda is put in a cage for exhibition in the park, in Cisarua, in the Bogor regency, some 80 kilometers south of Jakarta. The snake will reach a length of up to 11 meters after it has grown up in age, Taman Safari director Jansen Manangsang said here on

Monday. People visiting the park, which is controlled by keepers, including animal tamers, are told to remain their cars. The park spokesman Yulius H Suprihardo said the snake was brought in to coincide with the Chinese new year of 2564, called Year of the Snake. Anaconda, which spends most of its time in water, is placed in a big aquarium with red ornaments that dominate the colors of the symbols of the Chinese new year celebrations.

March 2013 Vol.2 No. 3

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Travel

Sun, Sand and The Creator The stars were still in the skies when tourists were ready to embrace the morning and wait for the sun to set and shine on the Bromo, Batok and Semeru which were standing tall from behind. It was an incredible view. The sunset from this location always drew admiration from the people who were watching it, including me.

Teks: Iqbal Alaik Foto: Alaik, Cipenk, Taufik

he face of Bromo had changed since its last eruption at the end of 2010. Now, almost all surfaces of the Bromo slope are covered by thick blankets of black sands. This brings me back memories of the Bromo before it erupted, when the blankets of sand were still thin and Batok was still decorated by green plants. It was Ramadhan 2010 and it coincided with the Kasada month of the Javanese calender. I was with friends from Jakarta and Malang and we came to the Ngadisari village in Probolinggo, East Java to witness the Yadnya Kasada ceremony which was held by the Tengger Hindus who lived in the Bromo area. After enjoying the sunset, we went to the Luhur Poten temple which was located at the foot of the Bromo Mountain where the Yadnya Kasada ceremony was concentrated. The Kasada ceremony originated from a story when the Majapahit kingdom started to lose its glory and some of the royal families decided to move to the areas around the Bromo Mountain. Among them were princess Raden Rara Anteng and a young man called Jaka Seger from the Brahmana caste. They built a community and ruled in the Tengger area. The people of Tengger lived peacefully and prosperously, however the rulers did not have any children. Hoping to get their prayers to have children answered, they decided to contemplate at the Bromo summit. They then heard a mystical voice that answered their prayers. Their wish would be granted provided

that they sacrificed their youngest child and leave him at the Bromo crater. Rara Anteng and Jaka Seger agreed and they later were blessed with 25 children. However, their conscience as parents stopped them from sacrificing their youngest child Kesuma. This refusal eventually brought a disaster. The skies turned dark and the Bromo spewed fire. Kesuma disappeared into the fire and into the Bromo crater and then a mystical voice said: â&#x20AC;&#x153;My beloved siblings, I was sacrificed by our parents and Hyang Widi saved all of you. Please live in peace and worship Hyang Widi. I want to remind you that you should make offerings to Hyang Widi at the Bromo crater every Kasada on the 14th dayâ&#x20AC;?. Before midnight fell, the Luhur Poten temple was already packed with Tengger Hindus who came from remote areas and from around the mountain. Some of them sat in line with bands tied around their heads and they burned incense. In front of them were offerings which consisted of fruits and crops. It turned out that these people were future shamans, religious figures who normally led religious processions and marriage among the Tengger people. As the morning approached, the Tengger Hindus who brought along offerings started to walk towards the Bromo summit. Their main offering was a dead adult buffalo which would be offered to Hyang Widi to express their gratitude. Once they reached the summit, they threw the offerings to the crater as they enchanted prayers. Oddly enough, there were already a few people in the crater who spread sarongs and nets to catch the offerings that were thrown into the crater. Among the offerings that they mostly awaited for were money.

As the morning approached, the Tengger Hindus who brought along offerings started to walk towards the Bromo summit. Their main offering was a dead adult buffalo which would be offered to Hyang Widi to express their gratitude.

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March 2013 Vol.2 No. 3

Culture Javanese Princess Murtiyah Gets Fukoka Prize for Preserving Culture “Preserving the palace`s traditional culture is the call of my soul. This desire will never end as long as I live, and no one can stop me,” said Koes Murtiyah Pakubuwono, which immediately drew applause from the audience. tion on Javanese culture during her childhood, she has always strove to promote the traditional court dance while supporting the preservation of central Javanese traditional culture.

Cultural preservation efforts

G.R.Ay. Koes Murtiyah Pakubuwono is a cultural activist from Central Java, who was born in 1960 as the Javanese princess of Surakarta Palace. The Javanese princess is heir to a tradition of court culture which has continued for 300 years in the royal house of Mataram in Central Java.

n that day, in January, the 52-yearold lady, popularly known as Murtiyah Pakubuwono, received an international award relating to arts and culture called the “Fukuoka Prize” from the Japanese government for her outstanding achievement in preserving and promoting the Javanese court culture. The Fukuoka Prize is certainly not an award that can be won easily. The international prize is only awarded to individuals or groups considered to have made a significant contribution to the preservation of Asian culture. Murtiyah Pakubuwono now belongs to that elite group. G.R.Ay. Koes Murtiyah Pakubuwono is a cultural activist from Central Java, who was born in 1960 as the Javanese princess

of Surakarta Palace. The Javanese princess is heir to a tradition of court culture which has continued for 300 years in the royal house of Mataram in Central Java. When she was a child, Murtiyah began learning the court dances, which had been handed down from generation to generation at the Javanese court, as a prerogative of royalty. Her talent was recognized early on. During her upbringing as a member of the royal family, she became deeply concerned about the continuation of the traditional culture in the face of modernization of the Javanese society and economy. In 1982, she started studying Javanese literature at `Sebelas Maret` State University to further deepen her knowledge about the culture of Java. Having received a thorough educa-

Murtiyah Pakubuwono, the daughter of Pakubuwono XII, has been preserving and promoting the Javanese court dance in various ways, one of them being through public performances amid full-scale gamelan music concerts. Based on data collected from the Fukuoka Prize committee, she has conducted more than 20 shows themed around Javanese court dance at the national and international levels. “I did my first international performance when I was 24 years old. It was entitled `Court Traditional Dance of Surakarta`, and I performed it in Japan, Europe, and the USA,” Murtiyah explained. Some of the dance performances were presented at international festivals, such as Asia Art Festival in Hong Kong, Next Wave Festival in USA, and Quartiers D`ete Festival in France. Not only that, Murtiyah, supported by her courtiers and other traditional artists of Surakarta Palace, held `Keraton Nusantara Festival` several times between 1995 and 2008 across Indonesia.

The Javanese princess recalled her struggling days when she started studying and promoting the Javanese court dance. “If I go back 45 years, when I started learning to dance, and when I did dance performances every year to promote Javanese culture in Japan and other countries worldwide, I never thought that I would be rewarded for what I stand for,” she stated. Furthermore, in cooperation with Japanese record company `King Record`, Murtiyah recorded and released a CD on “Srimpi Sangapati”, an ancient gamelan music piece that used to accompany Javanese court dances, in an effort to promote Javanese court culture and its significance. Thanks to such efforts, Javanese court dance has become increasingly popular both at home and abroad.

Obstacles and challenges

However, in her effort to preserve and promote the Javanese court culture, Murtiyah has always faced some obstacles and challenges. “The division of Mataram Sultanate into two sultanates, Surakarta and Yogyakarta, was a key reason for the decline of Javanese court dance`s popularity. Today Mataram faces the challenges of modernization and globalization. Therefore, I keep trying to preserve the traditional

court culture and pass them on to the younger generation,” the princess explained. However, as a member of the House of Representatives, she has played an important role in cultural administration, including in the conservation of traditional culture. “I remember the times when I was regarded as a stubborn person because of my desire to fight for the preservation of the Javanese court culture. In fact, I had even lost my temper at the House of Representatives,” she revealed. Murtiyah said the major challenge that she must face is to pass on the culture and its values to the younger generation. In an effort to overcome the challenge, Murtiyah has opened `Court Culture Studio` at Surakarta Palace where she can teach important aspects of Javanese court culture, such as Javanese language grammar, court ethics, traditional court dances, gamelan music, and shadow puppet. “The Javanese cultural lessons taught at academic classes are not the same standard as what is taught at the palace,” she said. “Unlike at academies, our standards are never compromised. Therefore, things are still difficult sometimes because there isn`t enough support from the government,” Murtiyah noted.

Support and basic principles

Fortunately, Murtiyah is not alone in her struggle. She has been supported by the courtiers and traditional artists of Surakarta Palace. She said she also feels grateful to God because her eldest daughter has joined her in her efforts to preserve the Javanese court culture of Surakarta. In addition, Murtiyah and people of Surakarta Palace continue to hold on to the three basic principles on preserving the culture. “The three principles have been handed down over generations since the time of Mataram kingdom. They are maintaining the harmony of natural life, maintaining relationships with God and fellows, and maintaining magnanimity,” the princess said. “The three pillars will always be remembered by the people of Surakarta as a reference for protecting the Javanese court cultural treasures,” she said.

Efforts led to results

Murtiyah has made great achievements with her dedication and efforts. She has received several awards, including the `Bhakti Upapradana` award from the local government of Central Java in 1997 and `Adipura` award from the local government of Yogyakarta - for her services in the field of tourism, arts and cul-

ture. Her greatest international achievement was that she made Javanese court dances as wellknown globally as the Balinese dance. According to a Fukuoka local government representative, Aki Nonaka, the Fukuoka Prize committee chose Murtiyah because of her dedication and achievement in preserving and promoting Javanese court culture to the international world. “Mrs. Pakubuwono doesn`t only preserve the culture, but she also passes it to the younger generation even though it is not an easy thing to do. That`s why she deserves the Fukuoka Prize,” Nonaka explained. “In addition, she has a high artistic value and continues holding Javanese cultural art events in almost all parts of the world,” she added. The princess expressed appreciation to the Japanese government for the Fukuoka Prize. She also admitted that the award has encouraged her and people of Surakarta to continue preserving and advancing the Javanese court culture. “However, loving and preserving the culture is a call of our souls. We will continue to do so without being asked or commanded because it has been embedded in our hearts,” the Javanese princess of Surakarta said. Antara

The Biggest and The Most Complete Exhibition of Gifts and Housewares is Back!

The 15th Jakarta International Handicraft Trade Fair

24 - 28 April 2013

Jakarta Convention Center Jakarta - Indonesia Opening Hours 10.00 am - 10.00 pm

March 2013 Vol.2 No. 3

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Property

Your Property’s Market Value The annual property value can change periodically that it can either be lower or higher than the NJOP, depending on several factors such as the type of certificate it owns, size of the area, accessibility and location of the property.

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By Andri Marsetianto

roperty has long become the symbol of wealth and prestige for the majority of the Indonesian people. That why it’s always interesting to follow the discussion about the topic and the understanding about property. Your property value could rise if it’s located in a prime location in Jakarta, such as Menteng, Pondok Indah, or the central business district and even in an industrial area that would soon have a toll road access to a port, monorail or to a new facility that will soon be built to support the Soekarno–Hatta airport. On the contrary, your property value could shrink if it’s affected by a road widening project or city spatial plan that would turn the residential area into a green area. Generally, you can learn about the property value based on the annual tax object sale value (NJOP), which usually increases in line with the economic development of an area. The annual property value can change periodically that it can either be lower or higher than the NJOP, depending on several factors such as the type of certificate it owns, size of the area, accessibility and location of the property. Usually a third party such as a public assessment service office (KJPP) would be the one to appraise the property value. This is to maintain the independence and accountability of the property value according to Indonesia’s standard assessment. The price concept is different

Usually a third party such as a public assessment service office (KJPP) would be the one to appraise the property value. This is to maintain the independence and accountability of the property value according to Indonesia’s standard assessment. to the value both in terms of the perspective of the seller or property owner and the buyer or renter. For sellers, the property price is often the price they offered because it relatively depended on the availability of the property that could be sold/rented at a certain market or at a certain period. For buyers, sometimes the property value is lower

than the price offered by the sellers, but they would be willing to pay more than the market value if the property is categorized as a special property. The Indonesian Assessment Standard (SPI) 2007 defines property market value as an estimation of money on the date of the assessment that was raised

from a sale-purchase transaction or from exchanging a property between an interested buyer and interested seller which is conducted appropriately where both parties acted based on an understanding, in prudence and without force. A property value is useful for: • Insurance company;

• Liquidator or curator; • Bank, to assess the amount of credit in accordance with the collateral value; • Investor property. There are several things in general that need to be considered when assessing a property when planning to sell or buy/ rent a property:

• Find out if the building permit certificate (SHGB) needs to be renewed after a certain period or whether the ownership certificate (SHM) was permanent and that it applied to an individual ownership; • The highest and best use analysis of a property will affect our property market value, for instance: a property in a housing complex would have a higher value as a house than when it’s used as a boarding house or if it’s turned into a building for commerce. This is because the property is used in accordance with its permit and the economic value of the land use; • Compare the value of the property we want to sell or rent with the same type of property in the area either through a property agent or developer and from information of the price that we gathered, make a price adjustment in accordance with the uniqueness of our property. For instance, in terms of the size of land, location, environment, maintenance or building renovation history; • Make other property assessment approach such as the cost and income approach for a property in the process of construction, a damaged property and/or property that will be rented as a boarding house. They should get an independent opinion from an independent assessor service provider due to their reliable competence and experience. “Know Your Value, Know Your Property”

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March 2013 Vol.2 No. 3

Technology

Canon EOS M Mirrorless Camera The Canon EOS M is based around a new ‘EF-M’ lens mount, and two matched lenses will be available at launch: the EF-M 18-55mm f/3.5-5.6 IS STM zoom, and the EF-M 22mm f/2 STM ‘pancake’ prime.

Chromebook Pixel: High-end Touchscreen Laptop from Google

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com

he Canon EOS M is the very first compact system camera from Canon, which is the last major manufacturer to release a mirrorless model. The EOS M has an 18-megapixel APS-C CMOS sensor, new EOS M lens mount, a touchscreen interface, Full 1080p HD Movie mode, ISO 100-12800 (expandable to ISO 25600), a 3-inch 1,040,000-dot LCD monitor, and a flash hot-shoe. The Canon EOS M is based around a new ‘EF-M’ lens mount, and two matched lenses will be available at launch: the EF-M 18-55mm f/3.5-5.6 IS STM zoom, and the EF-M 22mm f/2 STM ‘pancake’ prime. The EOS M features a compact, magnesium-alloy body. It has no built-in flash, but instead a hot shoe on the top plate, and in many markets it will come bundled with the new AAA-powered Speedlite 90EX unit. There’s neither a built-in viewfinder, nor connector for an external unit composition is solely using the camera’s rear screen. A new mirrorless system needs a new lens mount, which Canon has called EF-M to emphasis its continued compatibility with the company’s existing EF mount for autofocus SLRs. It’s a fullyelectronic bayonet mount, with 9 contacts between the lens and camera. Unusually, the white dot for aligning the lens is at the 11 0’clock position on the mount. The EF-M mount is 58mm in diameter, with a flange distance of 18mm from the bayonet to the

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Interestingly, the EOS M kit is supplied with the new Speedlite 90EX flash unit as standard. A wireless master function allows the control of multiple flash guns wirelessly.

sensor. As the image above clearly shows it’s matched specifically to the APS-C sensor size. The EOS M is released with two new lenses for the EF-M mount - an 18-55mm imagestabilized standard zoom and a compact, ‘pancake’ prime. Both feature Canon’s ‘STM’ stepper motor for autofocus, which allows near-silent refocusing during video recording. This means electronically-coupled ‘focus-

by-wire’ manual focus; thankfully though Canon hasn’t been tempted to discard physical focus rings. However, there are no switches to set the focus or IS mode and those are controlled from the camera. Furthermore it’s a touch screen, though you wouldn’t automatically know it from looks alone, as we also get the basic physical controls ranged alongside it. Apart from just three

choices being offered on the shooting mode dial, otherwise the EOS M layout is pretty much business as normal for a consumer level compact camera. Interestingly, the EOS M kit is supplied with the new Speedlite 90EX flash unit as standard. A wireless master function allows the control of multiple flash guns wirelessly. There some factors which

seem to indicate that the EOS M is not designed to attract the pros out there: the screen-driven control is one of them; another is the provision of a range of creative filters that includes toy camera, grainy B&W, fish eye distortion etc. Overall, the camera appeals due to its compact dimensions, light weight and (once you get used to it), simple touch screen operation.

Google has launched a premium Chromebook Pixel with a-quite-high specifications. It’s a new thing from Google since their Chromebooks are always sold at lower-price. The Pixel is clearly not cheap; it is priced at $1,299 (WiFi only) and $1,449 (4G LTE). Chromebook Pixel is of course using the Chrome OS operating system developed by Google. It has frilly features like a touch screen with a Retina display-matching 2560-by1700 resolution, screen size of 12.85 inches, an anodized aluminum chassis, and a trio of noise-canceling microphones. The Pixel’s outer beauty is matched by some beastly (for a Chromebook) hardware specs. It boasts an Intel Core i5 processor with an integrated GPU (Intel HD Graphics 4000) from Intel’s latest batch of mobile processors that thoroughly outmuscles the low-end Celeron chips found in most other Chromebooks.

For those who love Google apps and have been waiting for something premium, this will be a fantastic new arrival. This is an enchanting machine; a little heavy but a genuinely interesting entry into the high-end of the market. As a support, there is also 4GB of RAM and storage service Google Drive for 1TB for 3 years. For storage in it, the WiFi version only acquires capacity of 32GB SSD, while the 4G LTE models have 64GB SSD storage capacity. For those who love Google apps and have been waiting for something premium, this will be a fantastic new arrival. This is an enchanting machine; a little heavy but a genuinely interesting entry into the high-end of the market.

March 2013 Vol.2 No. 3

www.thepresidentpost.com

Golf

Faldo Series Academy Opens in the U.S.

Matoa Nasional Golf Course:

Pearls in South of Jakarta Matoa Nasional Golf Course is a 60 hectare oasis in South Jakarta. The Club is bounded by two rivers and adjoins verdant paddy fields. The par 72 course, enriched with high quality grass, offers challenging natural and man-made hazard. Matoa is the realization of a long-held dream. The concept of golf situated in complete harmony with its natural environment has been developed and refined over many years by a team of golfing enthusiasts, naturalists and design experts. The golf course itself is unique with a difference; it’s a tribute to the outstanding variety and beauty of Indonesia’s Rain Forest. Over 4,500 trees from many beautiful islands have been planted as scenery for the fairway and greens of Matoa Nasional Golf Course. The golf course and country club have been built by B. Hasan, B. Santo-

Six-Time Major Champion Sir Nick Faldo is bringing the Faldo Series to the U.S with a full-time residential academy at Grande Sports World in Casa Grande, Arizona.

ix-Time Major Champion Sir Nick Faldo is bringing the Faldo Series to the U.S with a full-time residential academy at Grande Sports World in Casa Grande, Arizona. The full-time residential Faldo Series Academy (FSA), which will open for Fall 2013, will welcome elite youth golfers from around the globe for academic and golf development in search of college scholarships, a future in the golf industry, or start to a professional career. This Faldo Series Academy will also be the full-time home to Faldo Series USA, the newest division of the Faldo Series which was launched by Faldo in 1996 and now hosts 40 events in 30 countries in an effort to provide opportunity through golf and develop tomorrow’s champions. Past champions of the Faldo Series include World #1’s Rory McIlroy and Yani Tseng. “This is an exciting time for the Faldo Series and for young golfers from around the world,” said Faldo. “I have long looked for the best way to bring the opportunity created by the teachings of the Series to the US. The great success achieved here at Grande Sports World in creating opportunity for gifted young soccer players gave us the perfect foun-

www.faldoseriesacademy.com

so and Associates (Associated by Thompson, Wolveridge & Perret). The 18 holes course is designed to the highest championship standards, representing the best of traditional golf design and the natural splendor of the tropics. The championship course is part of a 60-hectare area consisting of exotic trees and plants. The idea to make the course function as an “Arboretum” conservation and preservation area of extinct trees and plants species is the scenery for the fairway and greens of Matoa. Located in the quiet and secluded area of Ciganjur, South Jakarta, it offers you fresh and natural air without the long drive. The course is also equipped with other features such as driving range, luxurious restaurant, conference room, swimming pool, and locker room with sauna. www.goodlife.co.id

This Faldo Series Academy will also be the full-time home to Faldo Series USA, the newest division of the Faldo Series which was launched by Faldo in 1996 and now hosts 40 events in 30 countries in an effort to provide opportunity through golf and develop tomorrow’s champions.

dation to build special opportunity for young golfers here.” “We look forward to welcoming our first full-time residential students in the fall, and to work with golf coaches around the world to create one-of-a-kind camps and individual instruc-

tion to meet an individual team or player’s needs,” he added. The site of Faldo Series Academy, Grande Sports World is also home to the Real Salt Lake – AZ Development Soccer Academy, a full-time residential soccer school for outstanding players.

As part of the groundbreaking celebration last month, Faldo presented a short game clinic, interviews and taking pictures and followed by tours of the Grande Sports World Performance and Training Facility. The event took place at the

historic Francisco Grande Hotel and Golf Resort, 12684 West Gila Bend Highway, Casa Grande, AZ 8519. Members of the Arizona First Tee program, local high school and collegiate golfers and area dignitaries attended the event.