The President Post Vol II May 2013

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May 2013 Vol. 2 No. 5

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INTERVIEW

Tanto Kurniawan Takes on Challenge To Build Jababeka Industrial City

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PERSPECTIVE

GOLF

Indonesia's independence is historical proof that Generation 45 had succesfully completed their historical duty to reclaim and maintain independence while the duty to achieve the country's goals lies in the hands of next generations. – Page A4

Bernd Wiesberger shot a 5-under 67 in the final round Sunday (5/5) to win the Indonesian Masters by a stroke over British Open champion Ernie Els. – Page C8

Realizing the Dreams of the Nation

– Page A3

Austrian Bernd Wiesberger Wins Indonesian Masters

Leaders’ Personification: Simplicity Rules!

Mahatma Gandhi

Simplicity is one of the characters needed by a great leader. Effective leaders are the ones who, when faced with complexity, turn to simplicity. They are the ones who "lift the fog," who clearly point out a destination and help us focus on the path to getting there. They clear away the clutter.

S

implicity is usually used as a term for a lifestyle that has gone in and out of fashion. But, simplicity is beyond a fad or a trend; it is a way of life – a philosophy and a way of looking at things that doesn't follow trends of economic cycles.

Designing simplicity requires probing the core of complexity; doing away with the superfluous and the inefficient; clarifying, organizing, optimizing; and pruning the subject to its purest form to function effortlessly and beautifully while drawing forth meaning, metaphor and character.

Simplicity is one of the characters needed by a great leader. Effective leaders are the ones who, when faced with complexity, turn to simplicity. They are the ones who "lift the fog," who clearly point out a destination and help us focus on the path to getting there. They clear away the clutter.

One of the great examples of a leader with simplicity is Mahatma Gandhi, who used simple language and lived a simple life.

Yet he was able to concert energies of an entire nation towards achieving Indian Independence.

Leaders frame complex strategies, use heavy weight terminologies to describe their plans, set up complex processes and use a lot of jargons when communicating for a change. They spend

heavily on getting those strategies across the board and aligning people to it. Yet, strategies fail because people fail to connect.

Leaders always have a choice to simplify or complexify.

In the 20th Century, when Gandhi and the nation fought for independence, simplicity worked. Today, in the 21th century, we still have some leaders that carry simplicity in their leadership. Ho Ching, the Chief Executive Officer of Temasek Holdings, is one of leaders that live in simplicity both in her daily lifestyle and leadership.

Temasek has grown and transformed under Ho Ching, focusing it's portfolio on the twin transformations of Asia and Singapore to expand from S$77 billion to S$198 billion over the course of a decade. When Ho Ching became CEO in 2002, she overhauled Temasek, setting up more precise performance guidelines while raising accountability and transparency. Ho is well connected: her husband is Prime Minister Lee Hsien Loong, son of Singapore's legendary elder statesman Lee Kuan Yew. But she has taken a strictly professional approach.

Rather than prop up zombies, she has not been afraid to let operations fail.

Prior to serving at Temasek, Ho Ching was President and CEO of Singapore Technolo-

gies Group from 1997 to 2001.

She married Lee Hsien Loong in 1985, at which time his father was serving as Singapore's Prime Minister.

As a first lady and the top 10 most powerful women according to Forbes, she has every right to wear the most expensive or glamorous suit, yet Ho Ching keeps the simplicity in her daily fashion outfit. A director of Temasek’s sister company said that it doesn’t matter with her fashion style as long as she firmly and carefully provides guidance in controlling the business.

Leonardo da Vinci once said, “Simplicity is the ultimate sophistication”. Can’t agree more that, Madam Ho reflects the quote very well.

In Indonesia, the word simplicity is close to DKI Jakarta’s governor Joko Widodo. He’s famous for his sincerity, humility, honesty, and ability to engage people.

He is a representation of a new generation of Indonesian leaders who long to break from the past "sin" of corruption, collusion and nepotism in Indonesia.

When he was a mayor of Solo, he donated all his salary to the poor, successfully made healthcare and education free for the needy and public administration clean for all. He made security officers’ wear friendly batik instead of intimidating uniform, turned slum areas into green public areas for families, made high-cost

bureaucracy into simple, easy and friendly One-Stop-Service public service. Solo became a friendlier place for citizens and more attractive for tourists.

His disposition and charismatic is like a magnet for Jakarta citizens who want change. As a governor, so far he stays true to his principles: a leader is a servant for the people. His favorite activity is called “blusukan”, which is going through slum areas, observing water canals, and talking directly with low-class citizens. It gets plenty attention from the media and the public.

He demands that his government works transparently, does not want to hear about any of his staff falling astray or using the city's budget without yielding results. He simplifies bureaucratic rules when making a decision. With his Deputy Governor Basuki Tjahaja Purnama (Ahok), they upload their meetings onto Youtube along with a record of meetings. By doing so, they want people to engage directly in what the governor and his staffs discuss as well as bring to their awareness the budget or funds needed.

Jokowi with his simple yet effective system has successfully convinced Indonesians – not only Jakartans – that simplicity rules! (JFS/TPP)

Ho Ching CEO of Temasek Holdings

Joko Widodo Governor of DKI Jakarta

“Simplicity is the ultimate sophistication” ~ Leonardo da Vinci ~

Police Chief Fully Supports Security in Industrial Areas The development of industrial estates in Indonesia since the 1970s is covered by Presidential Decree No. 53 October 27, 1989, which allows the private sector to build industrial estates with high impacts on social and economic aspects. New factories were built that absorbed millions of workers directly and indirectly. The high growth of housing around industrial areas, the development of infrastructure, and rising middle class made it unavoidable for prices of industrial estate lands to rise.

The high demand of labor from companies in the industrial area becomes a challenge to local workers to compete with migrant workers while at the same time adhere to the labor law and local government policies. Selective recruitment and recruitment firms that supply outsource labors have limited employment opportunities for local workers.

The limitations of employment and business opportunities made local people around industrial areas unemployed.

The number of youth unemployment around industrial areas is extremely vulnerable and is prone to lead to social unrest,

Jababeka, with its community college (Akademi Komunitas), is ready to apply the education to love the nation by introducing martial-arts education, manners, mutual respect among students, and others.

These students can serve as security personnel for the area when required under the command of District Police. tion and communication tools for the community.

Chief of the Indonesian National Police, Timur Pradopo. leading to criminal acts and harassment of the safety of factories in industrial areas.

Moreover, labors are often dissatisfied with existing regulations and seek some changes from the government, among

others, the elimination of outsource labor, decent wages, and the application of social security no later than 2014. Regrettably, they often show their protest through demonstrations that frequently lead to anarchy.

To address these social issues, empowerment program through coaching and development of business diversification are needed. This should be followed by easier market access and the development of informa-

Jababeka, with its community college (Akademi Komunitas), is ready to apply the education to love the nation by introducing martial-arts education, manners, mutual respect among students, and others. These students can serve as security personnel for the area

when required under the command of District Police. It is expected that demonstrations will not turn to anarchy when demonstrators are handled by society itself. Often, the presence of the police in full force raises the tension of demonstrators.

In response, Chief of the Indonesian National Police (Kapolri) Timur Pradopo said that his force is ready to support security in industrial areas. He added

that to avoid sweeping activities, he has prepared a standby force in several industrial areas.

Besides, according to the police chief, companies are expected to provide psychological welfare for employees through employees’ vacation or rewards so employees feel like they belong to the company. This example will build a healthier relationship between labors and employers. (JFS/TPP)

Astronacci Monthly Outlook JCI Bullish The JCI is currently moving in a bullish phase in line with our expectation, and that movement has yet to come to an end. We expect the index to hit the 5,0605,120 range within a short period..

Big opportunities are offered by big cap stocks like BBCA SMGR ASRI, MDLN, BBRI, MAIN, WSKT, MAPI, and BKSL. We believe that they are likely to act as ma-

jor catalysts that will move the market to a new and higher level. You will be having short-term trades during this period and make sure that your trade positions are already adjusted to the current market’s volatility.

Samuel Utomo, CFTe Head of Research, PT Astronacci International

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May 2013 Vol.2 No. 5

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Opinion

The Indonesian Economy’s Strong Resilience Observing the developments in Indonesia, one can safely conclude that amid the global slowdown the country has shown its strong resilience. It moved at the growth rate of 6.2% in 2012 and is expected to climb slightly higher this year to reach the rate of 6.5%, one of the highest in the world following China and India.

By Atmono Suryo

The World Response to Indonesia's Economic Performance

M

Low Confidence

RIGHT TRACK

any observers believe that the country has the potential to achieve economic growth of around 7%. Indonesia has thus been on the right track, and this trend should be continued.

Next phase: To look into the future (ten to twenty years from now), it is most encouraging to see McKinsey predicting that the country will be moving fast ahead and to be rated among the 10 largest economies in the world. It seems, however, that these predictions can only be achieved if the country’s economy be transformed into a more dynamic economy. It will not be able to depend only on the consumption factor as the only engine of growth.

McKinsey's View on Indonesian Economy in 2013

Indonesia will become developed country in 2030 Indonesia today

Indonesia 2030

16th-largest economy in the world

7th-largest economy in the world

45 million members of the consuming class

135 million members of the consuming class

53% of the population in cities producing 74% of GDP

71% of the population in cities producing 86% of GDP

Ranking 2007 2010 2012 1 1 1 5 3 2 6 4 3 3 2 4 10 5 5 11 7 6 7 24 7 4 10 8 21 20 9 16 21 10 18 11 8 18 12 20 23 13 12 12 14 8 11 15 16 13 13 17 18 24 19 22 9 20 15 21 22 22 6 23 24 25

0.20

0.40

High Confidence

Values calculated on a 0 to 3 scale 0.60

0.80

1.00

1.20

China India Brazil United States Germany Australia Singapore United Kingdom Indonesia Malaysia South Africa Russia Turkey Vietnam United Arab Emirates Thailand France Taiwan South Korea Canada Japan Switzerland Poland Spain The Netherlands

1.40

1.60

1.80

•

2.00 1.87

1.73 1.60 1.52 1.52 1.52 1.47 1.47 1.45 1.41 1.40 1.39 1.39 1.38 1.38 1.37 1.37 1.36 1.35 1.34 1.31 1.30 1.30 1.29 1.27

•

•

2012 Source: A.T. Kearney Foreign Direct Investment Index, 2012

55 million skilled workers in the Indonesian economy

113 million skilled workers in the Indonesian economy

$0.5 trillion market opportunity in consumer services, agriculture and fisheries, resources, and education

$1.8 trillion market opportunity in consumer services, agriculture and fisheries, resources, and education

Source: McKinsey

ENGINES OF GROWTH

As predicted by the World Bank there will be mounting pressures ahead. There is no need to sum up what the numer-

ous internal negative challenges which can slide down the country’s position in the global economy. Instead, more focus should be given to the constructive sides and to detect what the potential engines of growth can be for the next ten to twenty years. In addition to consumption, it may include the following growth factors: • Demographic change: Indonesia can count on an increasing number of a Middle class (50-100 million) with higher purchasing power and

better education. This increasing Middle Income group composed of young population should not only create a sizeable consumer market but should also become a powerful engine of growth. Especially in the area of “capacity building”; in the areas of production and business; • SME’s: Indonesia has a very large number of SME’s (small and medium enterprises.)

With the right policies an increasing number of medium enterprises could be developed

•

•

to become important business companies in various fields; including the services industry; Natural resources: Indonesia is known for its vast natural resources. There is the need, however, for better strategies and policies to convert this highly important area into an area of high growth, especially for the many outer regions of the country to become new centers of growth; Technology and innovation: In these two areas the country is lagging far behind. Indonesia has still to catch up in a fast way; The Indonesian community, however, would like to know what the country’s goals are in these two areas; Regional development: Countries in East Asia and the Pacific are projected to continue to achieve high growth.

This will help to spur the development of Indonesia’s engines of economic growth, which are of cardinal importance to future growth; Strategic Location: Indonesia’s strategic location in a highly potential Asia-Pacific region gives Indonesia the golden opportunity to achieve what McKinsey predicts: to be the 7th largest economy in the world.

Investment: As rightly stated by Bank Indonesia in their latest report, investment has become the new engine of growth. In fact Indonesia has become one of the most attractive places for the inflow of investment.

As rightly stated by Bank Indonesia in their latest report, investment has become the new engine of growth.

In fact Indonesia has become one of the most attractive places for the inflow of investment.

The data above shows how the world responds to Indonesia’s economic performance. Indonesia’s ranking stood at 21 for the year 2007 but quickly went up to reach 9th place in 2012 after China, India, Brazil, USA, Australia, Singapore and the United Kingdom.

Foreign investment, however, is still an area of political controversy. It is not well recognized by some political corners what great benefits FDI (foreign direct investment) can do to develop the country to become a more dynamic economy.

The time has come for constructive actions to develop Indonesia’s engines of economic growth: To transform the economy into a dynamic economy and together with the other ASEAN countries become world economic players.

The writer is former ambassador to the EU.

On the Management of National Borders To strengthen the management of our border areas significantly, we need an integrated border policy. It is basically an inseparable part of the national security and national development policies.

By Anak Agung Banyu Perwita

V

arious cases related to claims over borders with neighboring countries such as Malaysia show that our management of national borders are weak. This condition will certainly disadvantage and undermine the integrity and sovereignty of Indonesia. This problem could also pose a series of other probems related to military or non-military security issues (economic, political, socio-cultural and environmental) that could disrupt both national and regional stability.

To strengthen the management of our border areas significantly, we need an integrated border policy. This policy and doctrines on integrated borders are intended to create, maintain and enhance security (economically, politically, socially, and environmentally) of border areas which are the main points of entry to Indonesia. An integrated border policy is basically an inseparable part of the national security and national development policies.

In this context, we need to review all instruments in the national development policy which are related to the development of

our border areas to prevent any overlapping that would lead to the ineffectiveness of other policies or national programs.

There are at least six main issues that need to be adressed integratedly in managing the country's border areas. First, security issues both traditional security (conflicts between countries) and non-traditional issues such as terrorism, smuggling, illegal logging and transnational crimes.

Secondly, issues related to national and international laws such as overlapping claims over a border area by two or more countries.

Thirdly is the cross-border

trade economic aspects and tourism both on national and local scales.

Fourth are related to various regulations which are applied in border areas. Issues such as this often emerge due to difference of opinions between the central and local government of the border areas.

Fifth are related to socio-cultural issues such as overlapping identity problems. Last but not least are managerial (administrative) issues in the border areas.

ly. This is not only a matter of issues but also involves a complicated management (process) of border areas and the involvement of various institutions both in central and local government (player) levels.

An integrated coordination comprising three main characteristics in managing borders, namely issues, processes and actors, are very strategic in the effectiveness of national development in general.

The writer is Professor on International Relations and International Relations Study Program chairman, President University, Jababeka-Cikarang

The problems above demonstrated the complexity in managing border areas integrated-

This policy and doctrines on integrated borders are intended to create, maintain and enhance security (economically, politically, socially, and environmentally) of border areas which are the main points of entry to Indonesia.

ENGLISH EDITION

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May 2013 Vol.2 No. 5

A3

Interview

Tanto Kurniawan Takes on Challenge To Build Jababeka Industrial City JAKARTA (TPP) – Tanto Kurniawan has long years in Indonesia’s property world and has made major contributions in developing cities, but this is not stopping him from taking on new challenges.

The former CEO of Paramount Group is now set on developing the eastern area of Jakarta, Kota Jababeka, as President Commissioner of PT Graha Buana Cikarang.

By Jeannifer Filly Sumayku

T

anto was asked by President Director of PT Jababeka SD Darmono to join the company at the end of 2012. In March Tanto officially entered the Jababeka Group. In an interview with The President Post, Tanto revealed that he feels challenged to develop the eastern area of Jakarta having previously worked under companies that develop the western and southern parts of Jakarta.

After graduating from the Faculty of Economics, University of Indonesia, in 1981, Tanto went to work in Bank Bali. But less than a year later, Tanto moved to PT Pembangunan Jaya and remained there until 1998. His last position was Vice President Director of PT Pembangunan Jaya and President Director of PT Jaya Property and PT Jaya Land.

In 1999, Tanto became a financial consultant for a number of large companies that dealt with mergers and acquisitions.

In 2006, Tanto was "discovered"

by Paramount, a company based in Singapore. He was assigned to take over the property of Ambassador Gading Serpong in August 2006. On December 18, 2006, Tanto set up Paramount Serpong.

According to Tanto, Jababeka is unique because it has an industrial area where there are 1,560 factories from 30 countries and a population over one million. The population, according to him, is similar to that of some old cities in Europe.

“Therefore, the development of this city will be like those of the old cities in Europe yet with a modern concept”, he said.

Jababeka is located in the dense Jakarta-Cikampek toll road. According to Tanto, an

area that is close to a highway is easy to be developed, and as such Jababeka is growing with a bright future.

"Moreover, Jababeka is more than 20 years old, so the company's management has been tested and has succeeded in coping with various economic turmoils," he said.

Developing property, particularly a residential sector in an industrial area, certainly has its challenges. Most people assume that an industrial area is polluted as there are plenty of factories. Tanto said that he wants to change that perception.

The Jababeka industrial area was built with the concept of being environmental friendly. Jababeka has a wastewater treatment plant, a water treatment plant, a system to reduce pollution, and 70 acres of golf course as the lungs of the city.

"So it’s not an exaggeration if we claim that our houses are eco-friendly, as that is a fact,” said Tanto.

Tanto also explained that

Jababeka is two or three steps ahead of other industrial areas, because it has built more than 100,000 houses for workers since the 90’s. And now Jababeka is targeting middle and upper class housing due to the increasing demand for houses and the opening of an interchange at KM 34,7.

Regarding the plan of Jababeka’s founder to build “100 Jababekas” in other cities, Tanto found the idea “brilliant”. He said "the success story of Jababeka will allow consumers and local governments to assess what kind of concept that is able to be developed in their areas.”

structure development so there will be no gap between Jabodetabek and other areas.

Jabodetabek has its own problems, as most people from Bogor, Depok, Tangerang and Bekasi work in Jakarta and this causes heavy traffic. Therefore, according to him, the Jakarta government should coordinate with other cities’ governments in urban planning for the next 50 years.

In fact, Jabodetabek should have a minister to administer it, said Tanto.

Tanto also said that the development should not be concentrated in Jabodetabek because other areas also have lots of potentials. The rapid growth in Jabodetabek makes all things more expensive, including workers' wages, Tanto said.

He pointed out that the weakness of other areas is inadequate infrastructure. Thus, the government should facilitate infra-

Regarding the growth of property in Indonesia, Tanto said that the large number of people in the productive age leads to huge growth in the property market as well as rising prices of homes. Therefore, businessmen have to be prepared to seize this good opportunity, he said.

In addition, several major cities in Indonesia will face the growth of areas offering vertical residents due to limited land.

"Construction of apartments is an excellent idea," he stated.

Urban communities must begin to realize that the availability of land for landed houses is dwindling. But to live in apartments require certain adjustments, because residents must share common amenities such as elevators, swimming pools and other facilities.

"However, that is what will happen to residential development in Indonesia, just like other cities in developed countries," he concluded.

The success story of Jababeka will allow consumers and local governments to assess what kind of concept that is able to be developed in their areas.”

The President Post/Heros Barasakti

Harmen Sembiring: "Morotai Urgently Needs Legal Recognition" Indonesia and Taiwan have no diplomatic relations, yet bilateral economic and trade relations between the two countries increase from year to year. Former Representative of the Indonesian Economic and Trade Office (IETO) in Taiwan, Harmen Sembiring, in a recent interview with The President Post revealed that Indonesia needs to keep improving economic ties with Taiwan for at least six reasons.

The President Post/Rians Rivco

By Jeannifer Filly Sumayku

Firstly, Indonesia enjoys a trade surplus of $2.1 billion in 2012. Secondly is vast investment opportunities, as Taiwan is the 10th largest investor in Indonesia. Third, there are about 195,000 Indonesian workers (TKI) in Taiwan working in the formal sector (as factory workers and fishermen) and in the informal sector (as care givers and household managers). According to Harmen, in the near future the number of Indonesian workers in Taiwan could rise up to 200,000 people.

Fourthly is the large number of Taiwan tourists to Indonesia (200,000 people per year). Fifthly, there are about 2,500 Indonesian college and high school students studying in Taiwan. Lastly, there are about 30,000 Indonesian women who are married to Taiwanese, mostly from West Kalimantan (Singkawang). Some of them have become citizens of Taiwan.

When Harmen was Representative of IETO, he arranged for an MOU between the mayor of Yangmei Taiwan and his counterpart in Singkawang so that both cities became sister cities to develop various forms of cooperation in agriculture and the learning of Mandarin.

If there is no clear status, things will be difficult. What would the island be?

An economic zone?

All in all, the legal recognition is linked to all facilities such as customs, tax, export and import, etc. If the status is clear, it will be easy to develop other sectors.”

As mentioned above, the number of Indonesian workers in Taiwan is huge. In fact, 43% of foreign workers in Taiwan are Indonesians.

Harmen observed that there are several reasons why Indonesians, for example fishermen, prefer to work in Taiwan.

Firstly, fishermen want to earn a better income and receive better treatment, which they cannot get Indonesia.

Secondly, rampant illegal fishing still happens in Indonesian waters by vessels from other countries (although the fishermen are Indonesian). For Harmen, it is paradoxical that Indonesia is a maritime country but that its fishermen have to work aboard to earn a better income.

Thirdly, Harmen noticed that Indonesia seems unable to facil-

itate a special place for cooperation with Taiwan. Hence, there was an idea to use Morotai as a special place for cooperation between Indonesia and Taiwan, especially in the fishing industry.

Why Morotai? It is because Morotai is relatively close to Taiwan – only three hours of travel time by plane. In addition Taiwan has special historical relations with Morotai, where many Japanese soldiers brought to Morotai dur-

ing World War II were actually Taiwanese.

Besides, Morotai is considered a strategic location in northern Indonesia. The island’s size is only 1/15 of Taiwan but four times larger than Singapore. If Morotai occupies a specific place in Indonesia-Taiwan cooperation in fisheries, many Taiwan companies will open processing factories in Morotai. That way our fishermen do not have to work

out of the country, said Harmen.

"They can work in Taiwan companies in Morotai, so the benefits of export and value added taxes will be part of Indonesia. The potential market is not only Taiwan but also Korea, Japan, Hong Kong and Macau,” said Harmen.

However, said Herman, the most important thing for Morotai now is the legal recognition from the government on the status of the island.

Harmen said, "If there is no clear status, things will be difficult. What would the island be?

An economic zone? All in all, the legal recognition is linked to all facilities such as customs, tax, export and import, etc. If the status is clear, it will be easy to develop other sectors.”

He said that initiations for legal recognition have started since 2010 but so far there is still no certainty.

"In Taiwan, Morotai is well known. I have met with the President, Speaker of the House of Representatives and businessmen. They already know about Morotai and businessmen are interested to invest there. But if there is no legal recognition, Taiwan will consider Indonesia not serious in attracting investment.

It is regrettable if our government does not use this momentum,” he concluded.

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May 2013 Vol.2 No. 5

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Perspective

Realizing the Dreams of the Nation Indonesia's independence is historical proof that Generation 45 had succesfully completed their historical duty to reclaim and maintain independence while the duty to achieve the country's goals lies in the hands of next generations.

I

By Gen. Djoko Santoso

In Indonesia's context, we need leaders with Pancasila quality and perspective to build the nation. A patriotic leader is someone who understands his country's needs and is ready to fight and sacrifice for his country.

ndonesia's independence proclamation by Soekarno-Hatta was made on 17 August 1945 and it was later stated in the opening of the 1945 Constitution as follows: “By the grace of God Almighty and urged by the lofty aspiration to exist as a free nation, now therefore, the people of Indonesia declare herewith their independence”.

Indonesia's independence is historical proof that Generation 45 had succesfully completed their historical duty to reclaim and maintain independence while the duty to achieve the country's goals lies in the hands of next generations.

Indonesia's goals as stipulated under the 1945 Constitutions are “To achieve an independent, unitary state of Indonesia that has sovereignty, is fair and prosperous”. In my opinion, to achieve those goals we need to understand that we have to create a condition where "the people are prosperous and the country is strong". This phrase has an educative meaning that to build a strong country, the people have to be prosperous and to achieve that prosperity a strong country is needed. This means that the country has to protect its people and that a country is not merely the center of power. Thus an understanding and awareness from the people and state apparatus are expected to grow so that they can jointly work hard to achieve the country's goals.

Achieving the country's goals is not easy.

Time has gone so fast and it had already been 15 years since the era of reform set in. The era of reformation has brought some advances in various aspects of life in the country. With no disrespect to the students who rolled out the reformation and the leaders who have run the country, we have to admit that reformation has not yet met the people's expectations.

There are still many problems that need to be addressed such as the erosion of the state pillars which has disrupted and threatened the country's values, unequal prosperity among the people with the gap between the rich and the poor getting wider, strict legal enforcement in the grassroot level but weak in the upper level, and rampant corruption both in the capital and the regions.

Indonesia's human resources’ competitiveness is weak and there is lack of international achievements. There's also a fact

come security problems and violations on the sea by enhancing both joint and independent operations in the sea, create a sense of security and public order such as counter-terrorism, empowering defense areas, intelligence operations, strategic operations, coordination to prevent and overcome terrorism with the help of military operations.

Overseas politics should enhance an equal, mutually beneficial international relations which could accommodate the national interests. Therefore, overseas politics should be carried out to accommodate the national interests which is to uphold the country's sovereignty, independence and characteristic.

Women, children and youth empowerment

that the people's cohesion is torn.

Conflicts are resurfacing in several areas in the country, both horizontal and vertical thus disrupting the social stability.

There are seven priorities that need to addressed in the next five years, such as:

Revitalization of the state pillars

The erosion of Pancasila values and perspective in living as a country is contributed by the globalization impacts which not only created disorientation and social dislocation but also caused a fading Pancasila-based national identity.

Therefore, efforts are needed to continuously revitalize and promote the fours pillars, which are Pancasila, 1945 Constitution, Unitary Republic of Indonesia (NKRI) and the Unity in Diversity Principle (Bhineka Tunggal Ika) to all layers, both to institutions and individuals in order to strengthen the country's unity and to prevent conflicts by strengthening the country's identity and culture.

Law enforcement and corruption eradication

Corruption has to be eradicated immediately because it's a disruption and the main hindering factor to the country's development. The eradication of graft and the enforcement of equal justice will boost the country's dignity.

Complete bureacracy reform

Bureacracy reform has to be completed especially with regards to improving public services which will be felt immediately by the people, eradicate graft and the corruption culture in bureacracy, create an effective bureacracy that is able to provide information, options and plans about objective measures so that they can serve as a reference in deciding a public policy, create an effective bureacracy costs in line with the productivity level and apply a merit system and reward and punishment to boost a healthy competition.

Fair economic development

Indonesia's macro economic development has been showing remarkable progress with growth of over 6% on average.

However, a growing gap between the rich and the poor, a widening development gap between western and eastern regions, between modern and traditional sectors and between urban and suburban areas are still evident today. Such phenomenon has led to a new concern that Indonesia could become “ONE STATE TWO NATIONS”. Our founding fathers clearly wanted NKRI or “ONE STATE ONE NATION”, which is reflected in Article 33 of the 1945 Constitution that stated Indonesia's economy is made and developed based on a familial and fair system to create prosperity for the people and not a liberalistic economy controlled by capitalism which only create the widening gap between the rich and the poor.

Improving the quality of the implementation of the regional autonomy system

Regional autonomy and decentralization of development was intended to ensure that development could be balanced, done evenly and fairly in the regions. However, regional autonomy should not reduce or disrupt the value of NKRI and the spirit of Bhinneka Tunggal Ika. Regional autonomy must continue to be evaluated sharply so that regions could overcome their pressing problems quickly and accurately, develop local creativity and active initiatives to develop their regions, which would have a major macro impact on the national development and provide a positive contribution to the central government's performance.

Defense and security and overseas politics

Defense and security skills should be focused on improving the professionalism and modernization of primary weapons defense system (alutsista), and security of border areas and outer islands, prevent and over-

Improving the quality of women, children and youth is an important and an inseparable part of developing human resources. Training women to become an equal partner of men is intended to boost their active role in development activities, including, efforts to create a healthy, prosperous and happy family and creating teenagers and youths to achieve good development, human resources and to boost Indonesia's competitiveness. Women's role in every aspect of development must be improved, especially in the education, health and employment sectors. Based on the demographic aspect, Indonesia has been blessed with a demographic bonus because 60% of its total population in the mid 21st century are in the productive age.

That's why training for women, children and youths is important so that the young generation can and take the opportunity to carry out the duties to achieve the country's goals.

In Indonesia's context, we need leaders with Pancasila quality and perspective to build the nation. A patriotic leader is someone who understands his country's needs and is ready to fight and sacrifice for his country.

Leaders who based their moves on the national interests are reliable, honest and fair and always aim for the country's interests. They will only focus on the country's interests and not personal or group interest and work for the country's glory.

They will not let corruption practices grow rampantly. Good leaders who hold true to Pancasila values are loyal to the NKRI and 1945 Constitution and display the true character and culture of Indonesia.

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May 2013 Vol.2 No. 5

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International www.presidenri.go.id

Indonesia Eyes Larger Economic Ties with Myanmar Myanmar’s President Thein Sein and Indonesian President Susilo Bambang Yudhoyono in a recent bilateral meeting discussed efforts to increase investment from Indonesia in Myanmar, especially in energy, food and infrastructure.

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s the biggest country in the ASEAN and the fourth largest in the world in population terms, Indonesia only ranks 14th in the international league of investors knocking on Burma’s business door.

To date, Indonesians have invested just $241 million in Burma since 1988, according to the Union of Myanmar Federation of Chambers of Commerce and Industry. Myanmar`s imports from Indonesia stood at $431.82 million, while its exports represented $40.94 million during the fiscal year 2011/12.

The government is leveraging its large state-owned business sector to put money into Burma. Proposals have been made by a coal producer, a bank, and metals mining and cement enterprises among 15 Indonesian state companies reportedly being chivvied to move into Burma.

Among the 15 companies are construction company PT Wijaya Karya (WIKA), electricity company PT PLN, tin firm PT Timah, aircraft maintenance company PT Garuda Maintenance Facilities (GMF), coal producer company PT Bukit Asam, state logistics agency Perum Bulog, PT Bank Negara Indonesia, fertilizer producer PT Pupuk Indonesia, cement company PT Semen Indonesia and telecommunication company PT Telekomunikasi Indonesia.

Minister of State Enterprise Dahlan Iskan said, "Business is rising in Myanmar in accordance with the democratization process there," adding that "All operational cost of Indonesian state owned companies in Myanmar will be taken care by PT Bank Negara Indonesia."

According to Minister Dahlan, of the 15 companies, three state companies have been

granted business licenses by the Myanmar government to operate in that country.

Construction company PT Wijaya Karya (Wika), tin mining company PT Timah, and cement producer PT Semen Indonesia have secured the license, Dahlan said on April 2, 2013. The three companies already opened representatives’ offices in Myanmar, he said.

Wika is licensed to operate as construction service consultant and build a factory to produce concrete poles.

"Wika has already had a location for the factory to be owned jointly with a Myanmar local company," he said.

PT Timah won a tin mining concession and PT Semen Indonesia is licensed to build a new cement factory with a production capacity of one million tons a year.

The minister earlier said elec-

www.presidenri.go.id

Prime Minister Lee Hsien Loong and President Susilo Bambang Yudhoyono agreed to further enhance economic linkages between the two countries. They encouraged their private sectors to collaborate on projects under Indonesia's Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI).

Singapore, Indonesia to Boost Bilateral Ties Singapore and Indonesia vowed to deepen economic ties as the leaders kept up a tradition of Leaders’ Retreat meeting last month.

During their meeting, Prime Minister Lee Hsien Loong and President Susilo Bambang Yudhoyono reviewed the progress made since their last retreat in Bogor, Indonesia, in March 2012.

They got an update on the progress of the bilateral working groups set up by both sides in 2010. These groups cover such areas as investment, air transportation, tourism, manpower, agro-business, counter-terrorism and economic growth zones.

The leaders agreed to further enhance economic linkages between the two countries. They encouraged their private sectors to collaborate on projects under Indonesia's Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI). By leveraging on each other's strengths, these joint investments will open up new opportunities and strengthen the productive capacity of both countries, the two sides said in a joint statement.

PM Lee and President Yudhoyono welcomed the good progress in the discussions on the maritime boundary between Indonesia and Singapore in the eastern part of the Strait of Singapore. The leaders directed the officials to expedite their discussion for the early conclusion

of maritime boundary delimitation.

In air transportation, PM Lee noted there are now many more flights between Singapore and Indonesia.

He said, "Indonesian airlines have been extending their fleet and building their networks and Singapore Airlines would also like to fly to Indonesia more, both the traditional destinations and new destinations. I think if we are able to accommodate that, both sides benefit.”

Progress has also been made in the area of agri-cooperation, where Singapore is importing more fruit and vegetables from Indonesia, and PM Lee sees potential to do more.

One area that the PM Lee hopes to see greater progress is cooperation on environmental issues, in particular, transboundary haze. Lee noted the haze problem was evident in Singapore last week and that this was not good for countries in the region.

He said Singapore has had cooperation with the province of Jambi, to work with the provincial government to mitigate the haze problem.

He said while the cooperation worked well, the agreement has lapsed. Lee said he has asked President Yudhoyono if the agreement could be renewed and the work taken forward.

He said, "The president agreed with me and he will encourage the governors of South Suma-

tra and Jambi to continue working with us. The haze problem continues, for example last week you would have notice there was a definite haze in the air; you could smell it, you could see it.

I don't think that is good for any of the countries in Southeast Asia."

Both have also directed officials to speed up talks on delimiting the maritime boundary between the two countries in the eastern part of the Strait of Singapore and to work closely to combat terrorism.

At the regional level, the two countries cooperate in ongoing efforts to forge a peaceful way forward in the South China Sea where there are territorial disputes between China and four ASEAN member states, and the building of an ASEAN Economic Community by the end of 2015.

Earlier, the foreign ministers of both sides signed a Memorandum of Understanding on cooperation in the fields of diplomatic education and training between the diplomatic academies of Singapore and Indonesia. The signing ceremony was witnessed by the two leaders.

On the occasion, Singapore’s Nanyang Technological University (NTU) conferred the honorary degree of Doctor of Letters to the Indonesian President in acknowledgment of his contributions over the years to developing close ties between Indonesia's educational and research institutions and the NTU.

tricity company PT PLN will cooperate with local company in Myanmar in reducing electricity loses rate in the country which is still at 26 percent. In Indonesia, the electricity loses rate is below 10 percent.

Aircraft maintenance company PT GMF will offer maintenance service to aircraft companies in Myanmar.

Coal-mining firm Bukit Asam has said it wants to build a minemouth power station of 200 megawatts electricity-generating capacity, which would be a major boost to Burma’s electricity shortage problems. But it must first develop an adequately productive coal mine.

PT Telekomunikasi Indonesia Tbk. (Telkom) will continue with its expansion program in Myanmar despite its recent failure to win a tender to be a cellular phone operator in that country.

Jakarta and Naypyidaw have also been in discussions on Indonesia buying Burmese rice as Burma steps up its exports.

However, in the last three years Indonesia has greatly increased its own production and also become a net rice exporter.

Myanmar’s President Thein Sein (right) and Indonesian President Susilo Bambang Yudhoyono.

Indonesia Joins VGT at European Cybercrime Centre Three new member countries have joined the Virtual Global Taskforce (VGT), an international alliance of law enforcement and private sector agencies dedicated to combating online child sexual abuse. Representatives from the Dutch National Police (DNP), Indonesian National Police (INP) and the Korean National Police Agency (KNPA) attended an offi-

cial signing in ceremony at the new European Cybercrime Centre (EC3) at Europol's headquarters in The Hague.

"I am proud to welcome these three law enforcement agencies to the VGT and I look forward to working together as we expand the global reach of the VGT to combat the online sexual exploitation of children everywhere," VGT Chair Ian Quinn, head of the Cyber Crimes Center for U.S.

Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), said in a statement.

With the addition of these three new members, the VGT now consists of 12 law enforcement agencies and 11 private sector partners -- the Kids Internet Safety Alliance (KINSA) and NetClean joined the VGT earlier this year as private sector partners.

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May 2013 Vol.2 No. 5

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Law & Regulation

Legal Protection for Minority Shareholders www.glasslewis.com

Although there are several regulations that protect the interests of minority shareholders under the UUPT, the best way is still through preventive measures. The company’s name will be marred if words came out that it was sued by one of the shareholders. Therefore, all stakeholders in the company must prioritize the good corporate governance principle.

By Paulus Khierawan

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have only a minority of shares in the company, I don’t have any influence in the company – is it true that a minority shareholder doesn’t have any power to protect his/her interest, or what kind of rights do minority shareholders have to protect their interests? We should know about the types of shares because every type has different rights.

In a company’s statute, shares are generally divided into two categories, regular shares and preference shares. Article 53 clause 3 of Law No 40/2007 on limited liability companies (UUPT) stated that regular share owners have the right to make a decision during the general meeting of shareholders on any aspect related to the company’s management, have the right to enjoy dividends when they are paid, and to receive the remaining assets upon liquidation. Other share types aside from the regular shares are categorized as preference shares, for instance, shares that give the owners the privilege to recommend the members of the board of directors or commissioners.

Article 53 clause 3 of the UUPT stated that shares could be clas-

the total shares have the rights to file a lawsuit in a district court against the members of the board of directors because they caused losses to the company as the result of a mismanagement or ignorance”.

sified into five types: • Shares that give the owners the right to vote or nonvote shares; The right to vote is given to the shareholders and to be used during the general meeting of shareholders. This vote is “one share, one vote”.

• Shares with a special privilege to recommend candidates as members of the board of directors and/or commissioners; This special privilege is the right to directly nominate a member for the board of directors and/or commissioners.

• Shares that had been withdrawn after a certain period or replaced with shares from other classification; • Shares that offer the holders the privilege to receive dividends ahead of shareholders from other share classification over a cumulative or non-cumulative dividend payment; and • Shares that offer the holders the privilege to receive the company’s remaining assets ahead of other shareholders upon liquidation of the company.

These different types of shares will give the shareholders different rights. If a person holds a minority of shares of only 5% out of a total of 100% shares, but the shares were preference shares with special privileges to nominate a candidate to fill in the board of directors or commissioners seat, the shareholders’ rights is the same as the rights owned by regular shareholders even though the shareholders had bigger amount of shares.

Therefore, we need to clarify the types of shares owned by a shareholder. The mechanism of shares in a company is that a majority shareholder has more rights compared to minority shareholders. This is considered normal because when a company suffers losses, the majority

shareholder would suffer bigger losses than minority shareholders. Therefore, it’s natural that a majority shareholder had bigger power. The problem emerges when the power is being abused and created losses for the minority shareholders. Therefore, the UUPT is needed to protect the minority shareholders.

actions which were considered unfair and irrational made during the general meeting of shareholders, by the members of the board of directors and/ or board of commissioners”.

Based on this mechanism, the minority shareholder will file the lawsuit on his/her own behalf.

The following are the steps that can be taken by minority shareholders to protect their interests according to the UUPT: • File a lawsuit Article 61 clause 1 of UUPT stated that “every shareholder is entitled to file a lawsuit against the company to a district court if the shareholder felt that he/she was being disadvantaged by the company’s

• Derivative action The derivative action is intended to allow the minority shareholders to file a lawsuit on the company’s behalf to protect the company’s interests. The derivative action is stipulated under article 97 clause 6 of UUPT in which it read “on behalf of the company, the shareholders which are represented by at least 1/10 (one tenth) of

Aside from article 97 clause 6, there is also article 114 clause 6 of UUPT which stated that “on behalf of the company, shareholders which are represented by at least 1/10 (one tenth) of the total shares have the rights to file a lawsuit in the district court against the members of the board of commissioners because their mistakes or ignorance had caused losses to the company”.

This mechanism allows the minority shareholders to file a lawsuit against the members of the board of commissioners on behalf of the company, on condition that they had shares that account for a minimum of 1/10 of the total shares.

• The right to request an investigation into the company Articles 138 to 141 of the UUPT stated that one shareholder or more that represent at least 1/10 (one tenth) of the total shares are entitled to request an investigation into the company by submitting a written request and the reasons to the district court where the company is located with the aim to obtain data and information when the company is suspected of committing something against the law that caused losses to the shareholders or a third party. Or when the members of the board of directors or commissioners are suspected of breaking the

law that caused losses to the shareholders or a third party.

This right can be used if the minority shareholders had asked the company for the data or information that was needed but the company refused to share it or disregarded the request.

• The right to enjoy a decent share price The right to protect the interests of minority shareholders when the minority shareholders disagreed with the company’s decision and decided to sell their shares. This right requires the company to buy the shares at a decent price.

This right is stipulated in article 62 of UUPT which read: “every shareholder is entitled to ask the company to buy their shares at a decent price if the shareholder disagreed with the company’s actions that caused losses to the shareholders or company during: • the change of statutes; • wealth transfer or placing more than 50% of the company’s net wealth on collateral; or • during a merger, acquisition or breaking away into a separate entity”.

Although there are several regulations that protect the interests of minority shareholders under the UUPT, the best way is still through preventive measures. The company’s name will be marred if words came out that it was sued by one of the shareholders. Therefore, all stakeholders in the company must prioritize the good corporate governance principle.

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May 2013 Vol.2 No. 5

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Property

State Assets and Asset Management Planning management, organization and control function to gain profits and to cut costs efficiently and effectively so that they could boost the added value of the asset management would give the companies the added value through asset empowerment.

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By Andri Marsetianto

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ata from the Finance Ministry showed that Indonesia has state assets worth Rp3,023.44 trillion per 2011, up from Rp1,173,3 trillion in 2005. These assets comprised Rp266.81 trillion in performing assets, Rp750.03 trillion in long-term investments, Rp1,567.97 trillion in fixed assets, and Rp438.63 trillion in other assets. If these assets were well-managed both in terms of inventories and assessments, they may well be worth more than the value that was currently stated. That’s why the role of asset management in the form of an integrated property management is needed to optimize the assets’ long-term value.

Speaking of asset management, there is a common perception in the public that this field is limited to only corporate asset management as part of companies’ inventory accounts as stated in their financial reports, especially the corporate balance.

Assets actually cover a much wider scope and included capital assets, such as the properties owned by the private sectors, government or state-owned enterprises. Asset management in general means a process of managing assets (wealth) which are both liquid or non liquid that had economic, commercial and exchange value that could help an individual or organization achieve their goal. Planning management, organization and control function to gain profits and to cut costs efficiently and effectively so that they could

•

•

If these assets were well-managed both in terms of inventories and assessments, they may well be worth more than the value that was currently stated.

boost the added value of the asset management would give the companies the added value through asset empowerment.

Asset management is divided into four main activities: • Identification – the activities include: - Gathering all data on fixed assets from all sites; - Make field trips to examine all objects including the di-

mension, usage, specification and physical condition and take notes of every elements that are in line with the condition in the field; - Check the legal status of the land, land and building based on the legal documents and based on data/ information on the field or information submitted by certain parties; - Identify all recorded data

with the data gathered based on the condition on the field, including the legal documents, dimension, specification, usage and physical condition; • Assessment of assets A company needs to make a regular assesment to establish the market value of the property object by using the common methods in assessing works such as the mar-

•

ket data approach method, cost approach and income approach for commercial properties.

Highest & Best Use Study An analysis on the usage of the asset’s current condition needs to be conducted to find out whether or not the usage was already optimal based on the land or building usage and the building’s function.

Asset management information system of the data of assets that was obtained from the data gathering activity An information system application needs to be developed to support the usage and performance of the assets which is in line with the demands and government regulations.

The development of the information system is crucial to support the asset management processes such as planning, identification of needs, budgeting, standardization of goods and prices, procurement, storage, distribution, inventories, control, maintenance, safety, usage, a change of legal status and management.

Look for strategic partner/ investor to cooperate on property development With a comprehensive asset management information system, a company could have a work program to develop its assets by opening an opportunity to investors to develop the assets. To meet the good corporate governance spirit, the cooperation should be made transparent and accountable and in line with the existing law to prevent any legal problems in the future.

With a comprehensive asset management information system, a company could have a work program to develop its assets by opening an opportunity to investors to develop the assets.

The President Post

BUSINESS

SECTION B May 2013 Vol. 2 No. 5 www.thepresidentpost.com

Inalum to Become State-owned Company www.medanbisnisdaily.com

State-owned Enterprise Minister Dahlan Iskan said that PT Inalum will become the 143th state-owned company after its contract with Japan expires.

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fter its contract expires, Inalum will automatically become state company because 100% of its shares are owned by the state,” Minister Dahlan said here on Tuesday.

He said that with the government controlling its stake, Inalum was not taken over but its status automatically changed (into state company),” the minister said. “So, this is not taking over of the company but it become state-owned by itself,” he said.

However, Dahlan who is also a former president director of state utility company PLN, said that he had no idea on how much the purchase value of Inalum because it was still under negotiations. “I just want to follow the price set by a team set up for that purpose. The team is still calculating it,” the minister explained.

He said that on the one hand Inalum would increase the number of state-owned companies while on the other the ministry of enterprises was doing its best to right size the number of state

Sales of Apartments To Hit New Record

Sitorus said in a written statement here on Friday, interest shown by buyers remained strong in the first quarter of 2013. Sales of apartment houses in the first three months of this year reached 4,300 units, Anton pointed out, saying, “it was more than one third of sales in the whole of 2012.”

Developers have been encouraged by the market trend to launch new projects, he said.

“A total of 2,800 units have been brought to the market in the first

companies from 142 at present to only about 86 in 2014 and 25 in 2025.

In the meantime, Minister of Industry MS Hidayat said that the governments of Indonesia and Japan still had difference over the value of Inalum which reached $140 million. “Japan referred the book value of Inalum based on the results of its revaluation in 1998 while the Indonesian government referred to its value before the revaluation,” Hidayat said.

For this, the Indonesian government will continue to negotiate it with Japan over the different value aspect in an effort to speed up the process of the change in the status of the company.

Hidayat, who is also the team chairman for the purchase of Inalum, said that the fund transfer for the purchase of Inalum reached Rp7 trillion, of which Rp2 trillion from the state budget 2012 and Rp5 trillion from state budget 2013.

The government since the beginning is planning to acquire

Sales of condominium or apartment houses are expected to hit a new record this year, exceeding last year`s sales of 12,500 units.

“Sales are set to pick up and potential to hit a new record,” international property consultant Jones Lang LaSalle`s chief researcher Anton Sitorus said here on Friday.

quarter mostly for middle class segment,” he added.

Meanwhile, the prices of apartment houses have continued to pick up with the growing demand, he said. The highest increase was recorded for the prices of middle class apartments - up 6% from the previous quarter.

Currently , more than 33,000 units of apartment are being built and 68% of them have been absorbed by the market, Anton said.

Luke Rowe, head of residential house division of Jones Lang LaSalle Indonesia, attributed the increase in sales to declining bank interest rate and growing demand in urban areas. “The launch of new projects will continue to be brisk in the next several quarters, but would likely slowdown only ahead of the elections next year,” Luke said.

AirAsia Indonesia to Go Public The government since the beginning is planning to acquire PT Indonesia Asahan Aluminium (Inalum), a joint venture between Indonesia and Japan producing aluminum in Asahan, North Sumatra, with an equity ownership ratio of 41:59. Japan with 12 private Japanese firms in the joint venture is the majority share holder, namely 59% while Indonesia only owns 41%.

PT Indonesia Asahan Aluminium (Inalum), a joint venture between Indonesia and Japan producing aluminum in Asahan, North Sumatra, with an equity ownership ratio of 41:59. Japan with 12 private Japanese firms in the joint venture is the majority share holder, namely 59% while Indonesia only owns 41%.

The project began operating

on January 6, 1976 based on a master of agreement signed on July 7, 1975 and would expire in 2013. Now, Inalum has a production capacity of 230,000 - 240,000 tons per annum. PT Inalum booked a profit of $12 million in 2010 while its debt burden amounted to $70 million.

Last year, then Finance Minister Agus Martowardojo stat-

ed that the ownership of Inalum should return to the government after the expiry of the contract in October next year (2013).

“Japan`s Nippon Asahan Aluminium should no longer extend the cooperation contract. Moreover, Indonesia has suffered losses for about 22 years during the cooperation,” he said.

AirAsia Indonesia plans to go public in the fourth quarter this year, its president director, Dharmadi, said here on Tuesday.

“The company is now processing administrative requirements for the initial public offering,” he said to newsmen after exposing the company`s plan to open new direct routes from Medan, the capital of North Sumatra to various cities in the country and abroad.

He said the company plans to float 20% of its shares in the Indonesia Stock Exchange and has

already appointed the underwriters for the IPO. “We hope the IPO will go well. AirAsia`s performance has been good marked by increasing number of its passengers and new planes,” he said.

AirAsia initially planned to conduct the IPO in the first quarter last year but it was delayed as it would acquire Batavia Air. It is optimistic its earnings would increase in line with its increasing from various regions especially Medan. “Medan is one of the important hubs for AirAsia,” he said.

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May 2013 Vol.2 No. 5

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Business

Honda Controls 71% of RI’s Scooter Market The biggest contributors to the Honda scooter sales were the BeAT Series and Vario Series.

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T Astra Honda Motor (AHM) controlled 70.9% of the country`s scooter market in the first quarter of 2013 by booking a sale of 870,874 units, a manager of AHM said.

“Honda’s domination of scooter market is closely related to its design, features, strong machine and fuel efficient consumption.

This is proof of consumers` trust for Honda`s scooter product,”

Deputy General Manager, Sales Division, of AHM Thomas Wijaya, said in a press statement here on Sunday.

Data at the Indonesian Motorcycle Industry Association (AISI) indicated that the total sales of scooters in the first quarter of 2013 were recorded at 1,228,963 units, up 16.6% compared with those in the January - March 2012.

The growth of Honda scooter sales was high where in the first semester of 2012 the total sales were only 649,794 units but it drastically increased by 34% in the same period in 2013.

The biggest contributors to

the Honda scooter sales were the BeAT Series and Vario Series. AHM succeeded in raising its Vario Series to 49.6 percent from 232,059 in the first quarter of 2012 to 347,122 in the same quarter in 2013.

Honda BeAT Series also underwent a growth of 44.3% from 314,263 in the first quarter of 2012 to 453,623 in the corresponding period in 2013. Honda Scoopy reached a sale of 41,499 units, Honda Spacy Series 27,660 and scooter premium Honda PCX 970 units.

In this period, AHM recorded a sale of 1,209,059 units, up 14% compared with the same

period last year which stood at 1,063,695. The sales growth of Honda far exceeded the growth of the national market at 2% percent from 1,931,677 in the first quarter of 2012 to 1,960,850 in the corresponding period in 2013.

In the moped motorbike segment, Honda controlled 60.3% of the market after successfully sold 253,898 of moped motorbikes, particularly the Honda Revo Series, totaling 91,291 units, Honda Blade 43,170 and Honda Supra Series 119,437 units.

In the sports motorbike segment, Honda sold 84,287 units in the first quarter of 2013, up

79.1% from 47,072 in the same period last year. Honda Sports motorbike type controlled 27.1% of the market ceiling, up slightly from the sales in the previous year which was 19.9%.

The number of sold Honda Verza was 25,067 units and Honda CB150R StreetFire 38,031 units. These two types contributed 74.8% to Honda`s total sport motorbike sales. The sales for the MegaPro type reached 14,297 units, Tiger 3,035 units,CS1 6 units sports premium CBR series 3,851 units.

S. Korea To Invest in Power Plants, Infrastructure South Korean investors are interested in building power plants and infrastructure in Indonesia besides other sectors such as textile, electronic and steel industries in which they have invested, South Korean Ambassador to Indonesia Kim Young-sun said.

“Representatives from some South Korean companies recently reveal interest in investing in power plant construction and infrastructure in Indonesia.

Feasibility study is underway,” the ambassador said here on Friday, adding that infrastructure is very important to support Indonesia`s industrializa-

tion process and development of the nation.

He noted bilateral trade and investment between South Korea and Indonesia have been expanding due to mutually beneficial and complementary economic structures. Indonesia owns huge amount of natural resources needed by South Korea, while South Korea is very competitive in the area of technology and financing.

In 2012, Indonesia exported natural gas, coal, oil and other energy resources worth $15.7 billion to South Korea, while it imported petrochemical goods, knitted textiles, synthetic resins,

hot rolled and steel sheets worth $13.9 billion from the latter.

The ambassador expressed hope the Comprehensive Economic Partnership Agreement (CEPA) between South Korea and Indonesia will soon be implemented. Up till now negotiations are still ongoing.

“CEPA will not only facilitate bilateral trade and investment but also ensure better market access and favorable regulatory environment,” he added.

Meanwhile, Coordinating Minister for Economic Affairs Hatta Radjasa said at the Jeju Initiative meeting held in South Korea last year that South Korean

investors have agreed to develop eight infrastructure projects worth $50 billion in Indonesia.

“The agreement is expected to boost economic cooperation between Indonesia and South Korea. The implementation of the projects will be supervised by the two countries` representatives working with the Joint Secretariat established in early 2012,” Hatta said.

Among the eight projects agreed upon during the meeting are the construction of Batam island (Riau Islands province)Bintan bridge; the restoration of Ciliwung river (Jakarta province); the construction of railway

tracks for coal transportation from Bengkulu province to Muara Enim (South Sumatra).”

Also the construction of Sunda Strait bridge connecting Sumatra and Java islands; the development of compressed natural gas (CNG); the construction of a coal power plant in South Sumatra; the opening of a new branch of Daewoo Shipbuilding and Marine Engineering (DSME); and the development of an agriculture-based multi-industry area, he added.

Telkomsel Posts Net Profit of Rp15.7 t in 2012 The number of Telkomsel subscribers rose 17% to 125 million last year from the year before.

PT Telekomunikasi Selular (Telkomsel), a mobile phone unit of state telecommunications operator PT Telkom, posted a net profit of Rp15.7 trillion last year, up by 22% from a year earlier.

All aspects grew by double digits, with revenues rising 12% to Rp54.5 trillion, including EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) which grew 11 percent to Rp30.6 trillion last year, Telkomsel Corporate Secretary Asli Brahmana said on Tuesday.

He said the number of Telkomsel subscribers rose 17% to 125 million last year from the year before.

To serve its subscribers, Telkomsel offered a wide range of

innovations called “beyond telco” and data-and digital businessbased cellular telecommunication services in support of “less cash society” such as T-Cash and a number of creative industries such as mobile application and other value added services” (VAS), he said.

Thanks to public confidence in the quality of Telkomsel`s services, the company won a number of awards, including Indonesian Mobile Service Provider of the Year (Asia Pacific) from Frost & Sullivan, Best GSM Operator of the Year (Selular Magazine Award) and Highest Number of Video Competition Digital Upload from the Indonesian Record Museum (MURI), he said.

Bank Mandiri to Pay Dividends of Rp4.65 t Bank Mandiri, Indonesia`s largest lender by assets, has agreed at its general shareholders meeting to pay dividends of Rp4.65 trillion or Rp199 per share, equivalent to 30% of its last year`s net profit.

The dividends were a form of appreciation for the bank`s shareholders who supported its performance throughout last year, the bank`s finance and strategy director, Pahala N Mansury said on Tuesday. “This step is in line with our commitment to providing good total return to shareholders,” he said.

At the meeting, the shareholders also appointed Budi Gunadi Sadikin as the bank`s new president director, replacing Zulkifli Zaini. Sadikin was formerly the

bank`s micro and retail banking director.

The shareholders also appointed Agus Supriyanto, Rudi Rubiandini, and Abdul Aziz as members of the bank`s board of commissioners.

Bank Mandiri, which was created through a merger of four state lenders more than a decade ago, saw a 30% rise in its net income last year, fueled by growth in loan demand and improved efficiency.

The bank`s net income grew Rp15.5 trillion last year, up from Rp12.2 trillion a year earlier, while net interest income rose to Rp27.5 trillion, up from Rp21.79 trillion the year before. Its total outstanding loans increased 23.7% last year to Rp388.8 trillion.

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Investment Indonesia Investment Forum to be Held in Singapore in May Indonesia has unlimited investment opportunities as a developing country and the government, businesses, and investors should optimally utilize the vast investment opportunities in this country.

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owerPR and Investor Daily Indonesia will organize the Indonesia Investment Forum (IIF) in Singapore, on May 15-17, 2013, Christovita Wiloto, PowerPR CEO Asia Pacific, said “The topic of this forum is discussing various investment opportunities in Indonesia, and opening a dialogue between the Indonesian Government, Indonesian enterprises as investment targets and Global Investors. This forum will be attended by approximately 50 Indonesian enterprises and 50 Global Investors,” he said as quoted by ACN Newswire, here, Sunday.

Indonesia has unlimited investment opportunities as a developing country and the govern-

ment, businesses, and investors should optimally utilize the vast investment opportunities in this country, he said.

“Foreign investment opportunities in Indonesia this year are supported by economic growth in 2012 still above 6%. Besides that, domestic consumption and the number of people in Indonesia can be drivers for investors to choose Indonesia, although there are many policies that need to be improved especially in terms of licensing,” he added.

Principally, Indonesia has to be innovative in investment sectors and no longer rely on cheap labor and focused on natural resources, he added. “The main objective of Indonesia Investment Forum is to create a better understanding of the business op-

portunities in Indonesia, which in turn will create investment interest in Indonesia as well as to increase the number of investors who will invest in Indonesia. We invite all investors from around the world to participate in this forum,” he stated.

Christov further explained that Indonesia`s economic optimism is still the main attraction for investors compared to other Asian countries this year, due to the carrying capacity of the infrastructure in the country which is still good.

The Indonesia Investment Coordinating Board data recorded in the third quarter 2012 that actual investment has reached Rp 229.9 trillion, up 27% compared to the same period of 2011 which amounted to Rp 181 trillion.

Those achievements consist of domestic investment of Rp 65.7 trillion and Rp 164.2 trillion of foreign investment. The biggest countries which invest in Indo-

nesia from January to September 2012 are Singapore with $3.5 billion, Japan $1.8 billion, South Korea $1.3 billion, and the UK $900 million.

Primus Dorimulu, Investor Daily Chief Editor, said “The example of investment products that are supposed to increase the added value of the investment, from coal to power sector, from investment in the textile industry to the apparel industry by making clothes with better design and certainly, all the investment sectors rely more on the carrying capacity of the technology.”

He explained that the opportunity for Indonesia to encourage the inflow of foreign investment into Indonesia is still quite large, due to the economic growth of Indonesia which is the highest in ASEAN. In addition, this year Indonesia is still considered to have sufficient capital to attract investment, and has political stability,

security, economy and the market are quite large, as well as, the amount of natural resources that can be used for innovation.

On the other hand, the emergence of various government policies that are related to the entry of investors, makes foreign investors need to reconsider the opportunity to invest in Indonesia. The factor of legislation, government regulations and politics often lead to various constraints.

“Indonesia Ministry of Finance and Indonesia Ministry of State-Owned Enterprises will be present as Keynote Speakers, along with the Indonesia Head of Investment Coordinating Board, Managing Director of the Indonesian Stock Exchange and Indonesian Head of the Commissioners Council at the Financial Services Authority,” he added.

Delegation of US Investors Visits Jakarta American Ambassador to Indonesia Scot Marciel welcomed 24 business leaders from 22 US companies to Jakarta to explore business and investment opportunities in Indonesia, the US embassy said in a press statement here on Thursday.

“Increasing business ties between Indonesia and the United States is a key pillar of the U.S.-Indonesia Comprehensive Partnership and the companies represented on the AmCham Singapore trade mission repre-

sent leading firms that are seeking to opportunities to expand trade, partnership and prosperity in both our countries,” said Ambassador Marciel.

The American Chamber of Commerce (AmCham) Singapore, in cooperation with the U.S. Embassies in Jakarta and Singapore, organized the delegation of leading companies to meet with government officials and business leaders during the visit in Indonesia on April 15-17.

Ambassador Marciel`s col-

league, U.S. Ambassador to Singapore David I. Adelman, led the delegation, highlighting the strong US interest in expanding business ties between the United States and Indonesia.

The discussions over the last three days highlighted the significant opportunities in Indonesia for these companies. Ambassador Adelman said, “American businesses are proven leaders in innovation and technology that bring global best practices in the marketplace and in the commu-

Shifting Toward Higher Interest Rates

By Edward Teather March CPI inflation and the return of the debate on fuel policy have helped remind investors that low inflation in Indonesia is a relatively recent phenomenon.

While food price inflation should subside, trade policy may induce some stickiness and the food price impulse could be followed by a fuel price impulse if subsidies are adjusted.

The combination of these price pressures may make the authorities less willing to allow a weaker currency as a means to correct the current account deficit, preferring to consider tightening still loose monetary policy. 10-year bond yields have already been edging higher.

We continue to forecast CPI inflation to average 6% in 2013, BI to tighten interest rate policy through H2 2013 and for the currency to stabilise (albeit with more downside than upside risks).

CPI inflation rose to 5.9% in March against consensus expectations of 5.6%.

The acceleration from 5.3% was a function of food prices - mostly ‘spices’ - due to supply issues. The 2011 experience suggests this effect will be temporary. This said, and perhaps less temporary, some of the acceleration in food price inflation was due to items that have been targeted by import restrictions and quotas.

Indonesia passed regulations establishing trade restricting import licensing requirements for horticultural products. Those regulations were revised in September 2012 to include even more onerous requirements for horticultural imports.

The affected products include, but are not limited to, fruits, vegetables, flowers, dried fruits and vegetables and juices. Indonesia has long maintained similar import licensing and quota re-

The authorities may be moving towards a less inflationary response to the current account deficit - tighter monetary policy.

Tighter monetary policy would act to slow domestic demand and help narrow the current account deficit.

gimes for animals, beef and other animal product imports.

In December 2012, Indonesia announced drastic reductions in quotas for beef and other animal product imports, further restricting access to the Indonesian market. On these grounds and in support of its own exporters to Indonesia, the US actually appealed to the WTO in March.

Indonesian import data seem to confirm that these illiberal trade practises are biting. Indeed the government has recognised the impact on inflation. On 5 April officials stated a review and adjustment (but not full removal) of the restrictions was under way in order to reduce the price impact.

This matters more broadly because steps like these, to support Indonesian producers, were highlighted as part of the effort to combat the appearance of the current account deficit in 2012.

Specifically in August 2012 the authorities indicated a series of such measures alongside an increase in BI’s FASBI rate.

Since then, in addition to further measures to curtail imports, the currency was allowed to slip during 2012. However, no further explicit tightening of monetary policy was undertaken and the domestic credit expansion

continued unabated.

Now, however, the policy response may be shifting. Although Indonesia’s import to GDP ratio is not high, some food and fuel imports are significant. A weaker currency adds to the import cost of both commodities. Higher food inflation, in part because of the restricted imports of some foodstuffs, alongside the budget allocation pressures to adjust fuel subsidies, may make the authorities less willing to allow a weaker currency. In its policy statement on 11 April BI projected a balance of payments deficit in Q2 (albeit smaller than in Q1). That suggests an intention to defend the currency. As such, the authorities may be moving towards a less inflationary response to the current account deficit - tighter monetary policy. Tighter monetary policy would act to slow domestic demand and help narrow the current account deficit.

Ahead of the 11 April BI policy meeting (when rates were left unchanged) Governor Darmin Nasution indicated the central bank was studying the possibility of a rate hike in the event of sustained inflation pressures.

Post meeting commentary revealed an intention to step up liquidity absorption efforts using longer-term deposits and bills. Consistent with this we assume shortterm interest rates rise in H2, with BI pushing the 3-month interbank rate up from 4.9% now to 5.5%. The timing of the fuel-subsidy adjustment assumed in our 6% average inflation forecast is important, with any policy-rate increases only following this move.

The writer is Executive Director and senior economist in UBS investment bank’s Asian Economics Team.

nity.”

AmCham Singapore Board of Governors member Elizabeth Hernandez, who is Hewlett Packard`s Vice President, Government Relations for Asia-Pacific and Japan, said, “Indonesia is a rapidly developing country with a large, emerging middle class and the strong ties between the United States and Indonesia offer a climate conducive to new business opportunities.”

The 24 delegates, representing a wide range of U.S. businesses,

met with senior-level government and business officials from the Ministries of Energy and Mineral Resources, Finance, Health, Education and Trade, as well as the Chairman of the Investment Coordinating Board.

The mission included discussions with local chambers of commerce and country experts, networking with businesses operating in Indonesia, and meetings with government leaders.

Investors Seek Clarity Over Investing in Morotai Some investors who have planned to invest in Morotai, North Maluku Province, postponed their plan until the issuance of government regulation to set Morotai as special economic zone (PP KEK Morotai).

Morotai Regional Development Planning Board Chairman Syamsuddin said here on Tuesday that many domestic and foreign investors wanted to invest in the district but they were still waiting for the issuance of government regulation on Morotai as special economic zone.

Syamsuddin noted that PP KEK Morotai was very important for the investors because it would be a reference for them to do their business in Morotai.

President Susilo Bambang Yudhoyono when dedicating Sail Morotai in Morotai District`s town of Daruba in September 2012 mentioned that Morotai

would be set as a special economic zone but the government regulation on it to date has yet to be issued.

According to Syamsuddin, PP KEK Morotai would support and guarantee the investors to invest in Morotai. “We hope the government regulation to set Morotai as a special economic zone will be issued in October 2013 at the latest so that the investor can do their business as soon as possible,” Syamsuddin said.

According to him, the development of Morotai into a special economic zone would be concentrated on marine and fisheries sector with the investment value of more than Rp30 trillion.

He said the local government has set up cooperation with a consortium from Taiwan which would invest in fish processing industry and dockyard construction.

Sebatik Island Shows Palm Oil Investment Potentials Sebatik Island in Nunukan District, North Kalimantan, has the potential for investors to develop palm oil processing factories as the area has about 8,000 hectares of oil palm plantations, local entrepreneur H Herman said.

“The people of Sebatik Island need palm oil factories to process the commodity as the region has at least 8,000 hectares of plantation,” he said here on Sunday.

Since there is no investor willing to develop business in the sector, oil palm farmers sell the commodity to Tawau in the Malaysian state of Sabah, he said.

“We are forced to sell our palm product to Tawau because the island does not have palm processing factory,” said Herman who has successfully developed Sebatik Island by creating oil palm plantations.

According to him, currently, former Nunukan district head

Abdul Hafid is constructing an oil palm processing plant in Bambangan Village, West Sebatik Sub-district.

“We hope the factory can accommodate the island`s oil palm production,” Herman said. However, he doubted the factory can accommodate oil palm production from all of the 8,000 hectares of plantation in Sebatik.

He said the factory will have small production capacity although palm oil production from the island keeps increasing. “It is not enough to have one processing plant particularly when all plantations here have produced palm oil. So we need another processing factory,” Herman said.

It is likely that foreign and domestic investors are not willing to build palm oil processing plants due to inadequate power supplies, he said.

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Event Reviews MTA 2013

The Precision Engineering Industry Event The biennial four-day trade event in Singapore (9–12 April) was one of the most anticipated events for the manufacturing industry in Asia. 500 exhibitors from 31 countries and regions showcased latest precision engineering and machine tool technologies.

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ajor regional and international machinery, metrology and tooling brand names participated in the exhibition. Whether directly from manufacturers or through local and regional distributors, visitors to MTA2013 were able to inspect the latest machines from big names such as ABB, Bruderer, Carl Zeiss, DMG Mori Seiki, Fanuc, Hankook, Hexagon Metrology, Hurco, Makino, Mitutoyo, Shenyang Machine Tool, Sodick, Studer, Takisawa, Tornos, Tsugami, Wenzel and YCM. MTA2013 featured eight international group pavilions, namely Germany, Korea (three pavilions), Singapore (two pavilions), Taiwan and the United Kingdom.

This is most evident in the Capabilities Hub, which is a showcase of Singapore’s ability to service these growing sectors. A joint initiative between event organiser SES and the Singapore Institute of Manufacturing Technology (SIMTech), 26 precision engineering enterprises demonstrated their aptitudes in the manufacture of high-quality, advanced solutions – all dedicated to meet the demanding and varied needs of Asia’s Aerospace, Complex Equipment, Medical Technology and Oil & Gas sectors.

The show’s success in supporting these high-value verticals is reflected mostly in the visitors it attracts. Market leaders from the vertical industries such as Baxter Healthcare, Cameron, Eaton Industries, FMC Technologies, GE Aviation and GE Oil & Gas, Hamilton Sundstrand Pacific Aerospace, Hewlett Packard, Rolls-Royce and Weatherford Technologies, are patrons of MTA and used MTA2013 as the place to source for new suppliers to upgrade their capabilities.

MTA attracts top industry professionals from all over the region. Every two years, they converge at MTA not just to keep

The President Post/Reza Ganesha

abreast with the latest technology in the global marketplace, but also to network, forge business partnerships, and listen to the many experts who share their knowledge at the event’s many conferences.

MTA2013 has partnered organisations within the industry to present a comprehensive series of conferences featuring an impressive list of keynote speakers and experts, as well as thought-provoking topics for discussion.

With Precision Engineering and Nanotechnology placing higher demands on the design, manufacturing and testing of high-precision surfaces, the Optics and Photonics Society of Singapore (OPSS) has brought back The International Conference on Optics in Precision Engineering and Nanotechnology (icOPEN2013) for a second edition at MTA2013.

Senior Minister of State for Trade and Industry & National Development Lee Yi Shyan at the opening day of MTA2013 encouraged industry players to adopt advanced technology and complex machinery to improve productivity and capabilities to move up the value chain.

He mentioned that industry should continue to leverage existing technological transitions and improvements. He was also glad that there is a trend where companies shift their emphasis from mass production of simple parts to the design, development and production of technologyintensive precision components and complex equipment.

Over 12,500 people including trade visitors, exhibiting staff, conference delegates and speakers, and members of the press visited MTA2013. Many came to do just that, to source for the latest machine tools and precision engineering technologies available in the global market place today. MTA will return from 14– 17 April 2015 at Singapore Expo.

(Reza/TPP)

AIRLINES & AIRPORTS 2013

Strengthening Indonesia in the Global Aviation Marketplace The President Post/Rians Rivco

The Airlines & Airports 2013 Conference and Exhibition was held on April 22-23 at The Four Seasons Hotel, Jakarta, in an event supported by the Directorate General of Civil Aviation, the Indonesian National Air Carrier, Angkasa Pura II and Dirgantara Indonesia.

The event covered a range of discussions and brought together professionals from airline operators, airport management, technology providers, associations, international trade missions and state authorities. “Strengthening Indonesia in the Global Aviation Marketplace”, the event provided views on Authority Policies and Regulation-Deregulation, Infrastructure Investments, Operations, MRO, Commercial and Distributions.

Capt. T. Gultom, Chairman of the Organizing Committee of Airlines and Airport 2013, in his welcome remarks said that the

conference is expected to accelerate the development of the aviation industry in Indonesia.

Moreover, Gultom said, the conference will hopefully synchronize and harmonize policies with action among regulators, operators, as well as stakeholders, and will raise standards of service quality, safety, and security for the growth of air transportation sector in supporting Indonesia’s economy.

Meanwhile Herry Bakti, Chairman, Advisory Board, Indonesia Aviation Forum, stated that Indonesia is experiencing vast growth in Southeast Asia at about 15-20%, and last year saw airlines carry over 80 million passengers.

In 2012, there were 261 domestic routes and 23 international routes, to and from Indonesia, being served by regional and foreign airlines. The growth

of national airlines is also followed by the increasing number of aircrafts in Indonesia. There were 1042 aircraft operated by national carriers in 2012, which will rise to 1,200 in 2015, as Garuda Indonesia and Lion Air have already ordered new aircrafts.

On the same occasion, Leon Muhammad, Secretary General Ministry of Transport, stated that in order to keep up with the base of the growth, the ministry has given the opportunity to private companies to invest in building new airports based on the Act 1/2009 regarding aviation.

“The private sector is welcome to develop airports in Indonesia.

The challenge is they also have to provide human resources with compatible competence to carry out aviation safety, security, and services aspects based on international standard,” said Leon Muhammad.

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Event Reviews

Financial Inclusion as Part of Social Responsibility The President Post/Rians Rivco

The Financial Club Jakarta held a Breakfast Dialogue themed “Financial Inclusion as Part of Social Responsibility” with Irwan M Habsjah, Independent Commissioner of PT Bank BTPN Tbk, as the speaker.

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n his presentation, Irwan explained that financial inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream institutional players.

Financial inclusion covers some activities as it contributes to sustainable development of the people, among others, extended value chain (empowers through engagement/education to microbusiness), market development/expansion (supports opening up the economy to microbusiness), care for community & development (improving the quality of life).

In various developing countries it is proven that the success of Micro Financing Institution (MFI) is not achieved by only addressing solution on financial aspects. It is gained by not only providing capital, marketing and technology, but also when other factors that directly impact on the welfare for the poor are addressed such as healthcare, education and capacity building for the vulnerable group and its surroundings, and use of technology in microfinance sector.

These three factors contribute to the efficiency and productivity of microbusiness.

Irwan also explained about Kredit Usaha Rakyat (KUR) as a success story in financial institution. KUR Program with the scheme guarantee concept is a financial inclusion movement that facilitates easier access for SMEs to sources of funds.

Banks providing credit to KUR grew from 19 to 33 banks as of June 2012 consisting of: five commercial banks, two sharia banks, and 26 regional development banks. Java takes the largest distribution of KUR with Rp 12,85 trillion and Bangka Belitung is the lowest with only Rp 288,1 billion.

In conclusion, Irwan stated that access to affordable financial services is linked to overcoming poverty, reducing income disparities, and increasing economic growth. Financial conclusion, according to him, is a concrete form of social responsibility of the financial industries to the society at large. It can increase the numbers of the bankable and sustainable development of the country, and as part of CSR implementation it should inherently be integrated within the business strategy.

“To minimize risk or failure, the financial inclusion movement should be driven to increase quality of life of the marginalized, supported by capacity building, education and safeguarded by pro-poor regulations,” he concluded.

To minimize risk or failure, the financial inclusion movement should be driven to increase quality of life of the marginalized, supported by capacity building, education and safeguarded by pro-poor regulations.”

Irwan M Habsjah Independent Commissioner of PT Bank BTPN Tbk

AFTERNOON BUSINESS FORUM

Global Financial Developments: Prospect and Impact on Indonesia The President Post/Heros Barasakti

The global economy slowdown continues and the impact of the crisis in advanced countries has affected emerging economies.

Europre’s economy contracted while Japan’s and the US’s improved although still vulnerable. Meanwhile the growth of China and India has slightly decreased.

The business forum “Global Financial Developments: Prospects and Impact on Indonesia” was held by the Financial Club Jakarta and Ernst&Young, with Dr. Perry Warijiyo, Deputy Governor of Bank Indonesia, saying that Indonesia’s strong economy attracts foreign investment searching for both long-term benefits as well as short-term gains in the financial market.

He said the middle class in Indonesia has increased in recent year and this has strengthened domestic demand and allowed FDI to make impressive gains.

But economic growth relies

more on domestic demand with high import content due to the weak economic structure in sectors, making the economy shifting between boom and bust with recurrent risks of overheating.

In addition, domestic economic growth is constrained by problems of infrastructure. “Economic growth would be higher if we could address the lack of roads and electricity,” he said.

For the economic structure to improve and to increase the capacity of Indonesia’s economy, structural reformation is required covering several sectors.

“This will make the economy driven by efficiency and innovation,” he concluded.

At the same event, Destry Damayanti, Chief Economist of PT Bank Mandiri Tbk, said that Indonesia has the most stable and highest economic growth in the region.

The impact of crises to Indonesia is relatively minimal as de-

picted by FDI and trade. The share of FDI from UK decreased significantly to 3.8% in 2012 while US stays at 5% of the total.

According to Destry, the banking sector should maintain its prudent operations due to its large contribution to the economy. This could mitigate greater impact from the global crises.

To avoid greater risks, banks already maintain their forex loans since 2011 while forex deposit tends to increase due to abundant liquidity.

However, lower global interest rates as the result of the Central Banks’s monetary stimulus has raised the appetite of Indonesia’s private sector to borrow abroad. External Debt is growing very fast since 2010, with the manufacturing industry as the main borrower in 2007 and financial and business services in 2012.

The middle class in Indonesia has increased in recent year and this has strengthened domestic demand and allowed FDI to make impressive gains.

Dr. Perry Warijiyo Deputy Governor of Bank Indonesia

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Events Review

“Revitalizing Indonesia’s Relations with African Countries in the Sub-Sahara” President University (PresUniv) held a Focus Group Discussion (FGD) on Friday (12/4) at PresUniv campus, Jababeka City, Cikarang.

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GD was organized in cooperation with the Ministry of Foreign Affairs and the Indonesian Chamber of Commerce and Industry (Kadin).

The event was moderated by Hendra Maurung from the Faculty of Business and International Relations (PresUniv), and participated by three speakers, namely Lasro Simbolon, Foreign Ministry director of African affairs, Mintarjo Halim, Chairman of Kadin’s Africa committee, and Prof. Anak Agung Banyu Perwita, the head of International Relations program PresUniv.

Lasro Simbolon brought the first presentation with the title “Optimization, Economic Diplomacy with African Countries”.

He elaborated on the good relationship between Indonesia and African countries. He said that Africa is the right market for exports since Indonesian products are needed by Africans. In fact, some Indonesian companies have built factories in several African countries, such as Indofood, Sinar Mas Group, Wilmar Group, Kalbe Farma, Tjiwi Kimia Finance and others.

The President Post/Heros Barasakti

He also described future prospects in African countries because they have large reserves of minerals such as bauxite, aluminum, cobalt, gold and diamonds. Therefore, he invited more Indonesian businessmen to invest there.

Meanwhile, Anak Agung Banyu Perwita in his presentation entitled “Regarding the relationship between Indonesia and Africa” said that besides strengthening economic ties, Indonesia could also help to improve the quality of education in African countries by sending lecturers to teach in universities there. So, Indonesia must have a center of education in Africa, he suggests.

Mintarjo Halim with his presentation entitled “Identification of sectors of industry excellence Indonesian and African efforts to use market opportunities” said that standardization of goods’ quality in African countries is not as high as that in European and developed countries. Thus Indonesia has the opportunity to market products and compete with China, Mintarjo said.

FGD participants and students of International Relations program PresUniv.

Approximately 30 participants attended the event.

Presentation from the speakers (left to right) Anak Agung Banyu Perwita, Lasro Simbolon, Mintaharjo Halim, and moderator Hendra Manurung.

Poster handover by Anak Agung Banyu Perwita to Lasro Simbolon.

Movieland Indonesia Launches Country’s Largest Open Air Cinema

By Titus Leber The opening of Indonesia’s largest open air cinema at Movieland Indonesia in Jababeka, on April 6th of 2013, an initiative of Dr Titus Leber, Cultural Director of Movieland, was an event as dramatic and suspenseful as a adventure movie in its own right. Will torrential rains, which began thundering down half an hour before the screening, prevent guests from arriving? Will the screening and the

Setiawan Madjuki (left) and DR.Titus Leber.

buffet have to be moved inside Hollywood Plaza, or would the whole event even have to be cancelled all together?

Fortunately, not long after the rain had let up, the original plan can proceed. Yes, finally the screening can be done in the open concept of this movie.

As opening film, Garin Nugroho´s multi-award winning film “Opera Jawa”, a film rarely seen in Indonesia, was selected. Not an easy film to follow

but stunningly beautiful, which would test in a positive way the audience´s readiness for alternative film-programs with high artistic standards.

In his opening speech Dr. Leber pointed at the need to improve “visual literacy” in our country, where audiences are not particularly spoiled with sophisticated movies. What makes a grand film with a wide public appeal is neither its budget nor its country of origin or appeal to cheap instincts of violence or action; it

is rather its capacity to appeal to the heart and to the mind of its audience beyond national and language borders. It has to be moving not only in terms of motion but also in terms of emotion.

In his remarks Dr. Leber also compared good films to good food, which can be appreciated only once it has been tasted.

With some delay the projection finally began, but it was worthwhile waiting: under stormy

clouds, opening up to reveal a bright nightly sky, superb projection equipment, comparable in quality to the best cinemas in town. A powerful sound system turned the open air experience into a delight for the eyes and the

ears and make us look forward for similar screenings which are to be held from now on at regular intervals at first monthly but later on a weekly basis at the Open Air Cinema in Movieland, Jababeka.

The President Post/Heros Barasakti

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Pictorial Events Australian Foreign Minister and Minister of Defense Visit to Indonesia The President Post/Rians Rivco

The Foreign Ministry (3/4) received a visit from Australian Defense Minister Stephen Smith and Foreign Minister of Australia Bob Carr accompanied by Indonesian Defense Minister Purnomo Yusgiantoro.

This visit is a continuation of a meeting of the 5th Ministerial Conference on human trafficking and smuggling (BRMC V) in Bali on the previous day (2/4).

BRMC V is a ministerial-level meeting of 49 member states, 19 observers, as well as 11 international organizations such as ADB, World Bank, UNDP, ILO, INTERPOL, ICMPD, IGC, IFRC, ICRC, and APC. The visit also saw major issues in the Asia-Pacific region and other parts of the world discussed.

Marty Natalegawa said “Bilateral relations between Indonesia and Australia should be further improved, especially on the issue of Indonesian residents in Australia who work there and should be considered legal”.

Australian Defense Minister Stephen Smith (left) and Indonesian Defense Minister Purnomo Yusgiantoro,

(left-right) Minister of Foreign Affairs Marty Natalegawa, Foreign Minister of Australia Bob Carr, Indonesian Defense Minister Purnomo Yusgiantoro, and Australian Defense Minister Stephen Smith.

Australian Foreign Minister and Minister of Defense visit the Ministry of Foreign Affairs to discuss bilateral relations between two countries.

OZMINE 2013 The President Post/Rians Rivco

Australian Government on 16–17 April held a Mining Conference and Exhibition OZMINE 2013 at the Hotel Shangrila Jakarta.

“In the seventh year, OZMINE 2013 is strong enough to capture the interest of companies in Indonesia and other ASEAN countries, and this year we welcome the participation of the Philippines, Thailand and Vietnam,” said Australian Ambassador to Indonesia, Greg Moriarty.

More than 100 companies and organizations participated in the Australian mining OZMINE event in 2013, and 45 companies listed on the Australian Stock Exchange have expressed interest in 172 mining projects in Indonesia.

The conference discussed a variety of important topics regarding the mining industry in Australia, Indonesia and ASEAN. Ozmine2013 brings Australia, Indonesia and other ASEAN countries together to strengthen and to improve partnership, particularly in the sectors of Mining Equipment, Technology & Services (METS).

Kelvin Thompson, MP Parliamentary Secretary of Trade (left), Greg Moriarty, Australian Ambassador to Indonesia (right).

OZMINE exhibitors 2013.

The Opening of OZMINE Exhibition – (left to right) Greg Morairty, Owen Hegarty, Kelvin Thomson.

PT Asahi Indonesia Opens New Factory in Jababeka Cikarang Pos/Imam Mahmudin

PT Asahi Indonesia under the auspices of the Asahi Rubber Group opened a new factory in Kawasan Industri Jababeka V, Cikarang Timur. The inauguration of the new plant was marked by a ribbon cutting by the Board of Management of PT Asahi Indonesia, Joko Dwijatmoko and Sertajaya H. Rosid Ardiana.

On the occasion the President Director of PT Indonesia Asahi said “We are very pleased to set up new factory in Indonesia.” PT Asahi Indonesia has 12 factories in China, South Korea, Thailand and the United States.

Meanwhile, President Director of PT Sumitomo SHI Construction Machinery Indonesia congratulated the establishment of Asahi’s factory in Jababeka. “We have collaborated with Asahi Rubber Group for 15 years.”

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Pictorial Events Jakarta Community Carnival The President Post/Rians Rivco

A total of 85 groups in Jabodetabek from different communities participated in the Jakarta Community Carnival which was held for the first time.

Indomie Goreng Cabe Ijo’s presence in the akarta Community Carnival is the commitment of Indofood to continue to build positive interaction with customers and to facilitate communities in Jabodetabek in expressing their creativity.

The carnival was attended by 3,000 participants from 85 different communities. They paraded by wearing costumes and attributes that show each community’s uniqueness.

The Jakarta Community Carnival also presented a 2.1 meterhigh tumpeng Indomie Goreng Cabe Ijo that can be consumed by more than 1,000 people who attended the carnival.

Hary Tanoesoedibjo with Julia Atman, Representative PT Indofood CBP Sukses Makmur.

Participants of Jakarta Community Carnival.

Hary Tanoesoedibjo with Julia Atman, Representative PT Indofood CBP Sukses Makmur.

Tumpeng Indomie Goreng Cabe Ijo, height 2.1 meters attracts visitors’ attention at Jakarta Indomie Community Carnival, on Sunday (28/4).

Secretary Night at the President Executive Club

Participants of Jakarta Community Carnival.

INDO Intertex 2013 The President Post/Heros Barasakti

The President Post/Heros Barasakti

Secretary Night (SN) was held in President Executive Club (PEC) Cikarang Jababeka city on Tuesday (30/4). This is the second time PEC held events intended to be the gathering of all secretaries in the Jababeka Industrial area. Approximately 100 secretaries attended the event.

SN was also enlivened by the appearance of artists such as Glen Fredly, Anang, President University Dancers, and others.

China Printing Machine at the Indo Intertex 2013.

Stunning performance by Glen Fredly.

Door prizes awarding.

South Korea is one of the manufacturers of modern obras machines.

Performance by President University Dancers.

Point Rewards at Graha Buana Club The President Post/Heros Barasakti

Graha Buana Club (GBC) held a ceremony to reward its members who have managed to collect points in selling units of Jababeka residences. This event took place at the Hollywood Plaza, Cikarang Jababeka City, on Sunday (14/4) and was attended by the directors of Jababeka Residence and hundred members of GBC. GBC gives reward to its members among others, shopping vouchers worth 500.000 rupiah to 15 members who has successfully make the sale of units worth 500 million rupiah. Other prizes are fax machines to six members, digital cameras, two folding bikes, dvd camcorders, and Ipads.

GBC gave a special prize, a Macbook, a folding bicycle, and cash money worth Rp 39,216,915

to Uus Suryana, who successfully reached total sales of Rp 10 billion in 2012.

The highest reward, namely vacation package to Bangkok and Pattaya, shopping vouchers 500.000 rupiah, and cash Rp 58.330.90, was given to Eman Sulaeman who successfully closed sales worth Rp 13 billion.

Welcome remarks by Lilian Nuraeni.

Surya Obras machine able to print 12 items in one operation.

Two grand prizes to Uus Suryana and Eman Sulaiman by Paskal Wilson accompanied by Lilian N, Aldy H, and Erik L.

INDO Intertex 2013 was held on 18-21 April 2013 at the Jakarta International Expo.

Indo Intertex is a textile and garment machinery exhibition organized on an international scale. It was organized by Expo Exhibit in coordination with the Ministry of Industry, the Government of West Java Province, the Chamber of Commerce and Industry (Kadin), the Indonesian Textile Association (API), and the Indonesian Exhibition Companies Association (ASPERASI).

Indo Intertex includes over 550 exhibitors of textile machinery and accessories like fiber making machines, spinning machines, yarning machines and textile chemicals, finishing equipment and systems, laboratory equipment, laundry machines, ironing and steaming equipment, laser cut machines, garment machinery and accessories like embroidery machines, sewing machines, laser cut and bar coding machines, textile and garment accessories, cooling systems, boilers and waste water treatment plants.

Prominent companies like ACE Heald, Adelco Asia Ltd, Amann Indonesia and Arioli SPA participate in this event every year.

The President Post

LIVING

SECTION C May 2013 Vol 2. No. 5 www.thepresidentpost.com

Of Course You’re Stressed. Just Look at You. www.spotonlists.com

We all know the face of stress: the clenched jaw, the furrowed brow, the intense stare. And, really, it’s not a bad look. We all do some of our best work under pressure. Adrenaline and other stress hormones give us the kick start we need to meet deadlines and generally get ahead in life.

B

ut when stress runs too hot for too long, the look changes. People who are stressed for years don’t merely appear driven or focused. They look beaten down.

In large doses, stress can wear the body and speed up the clock on aging.

The wear and tear of stress can show up in every part of the body: individual cells, bones, skin. You can even see it in photographs. A Dutch study from 2012 asked volunteers to guess the age of nearly 300 people from photos. The researchers also checked all of the photo subjects for cortisol, a key stress hormone. The results were telling: People with high levels of cortisol almost always looked older than they really were. The researchers estimated that each tiny increase in cortisol — each micromole per liter, to be exact — aged a person by about half a year.

Ronald Nathan, an author and psychologist who runs a men’sonly practice in Albany, N.Y., says he can see the telltale signs of stress in his clients. Wrinkles are one giveaway.

“They have the No. 11 between their eyebrows,” he says.

“I think the Botox industry is largely based on trying to erase the signs of stress.”

Why does stress leave so many marks? As Nathan explains, cortisol and other stress hormones trigger a “fight or flight” mindset—something that was very helpful when our species was competing with lions and cave bears. “But in modern life, we don’t have a lot of fights, and there’s no place to run,” he says.

The body turns that tension inward, sometimes with disastrous results.

Here are just a few ways that stress can wear down the body.

As Nathan frequently tells his patients, stress-related problems can often be avoided. Lifestyle changes, counseling and relaxation exercises can take much of the sting out of stress, he says.

Grinding teeth. Lots of people take out their stress on their teeth, says Dr. Eugene Antenucci, a fellow of the American Academy of General Dentistry who has a practice in Huntington, N.Y. As he explains, teeth grinding, or bruxism, is a natural extension of the clenched jaw that most people have in times of stress. When patients come

in with newly chipped or worndown teeth, they’re usually going through a rough patch in their lives.

“I hear it all the time. Their jobs are tough. They have money issues. Someone has passed away. They need to deal with stress to stop the grinding.”

Gum disease. Studies have found that people with the most cortisol in their blood, an unmistakable sign of stress, are especially likely to suffer from periodontal disease. And that leads to tooth loss and root canals, as if they didn’t already have enough stress in their lives. It’s not entirely clear how trouble at work or home can lead to unhealthy gums, but Antenucci says that stressed-out people often have dry mouths, one of the major causes of gum disease.

“They also don’t take very good care of themselves. When you’re under stress, brushing every day is something that might not happen.”

Inflammation. Lots of people are literally inflamed with stress, says Sheldon Cohen, professor of psychology at Carnegie Mellon University. He explains that cortisol and other stress

hormones trigger inflammation all over the body. In small doses, that’s OK, because a little inflammation can help fight infections and speed up healing from injury. But when people are too stressed out for too long, inflammation can get out of control, setting the stage for a long list of potential problems, including pain, heart disease and a weakened immune system. Cohen’s own research has found that

stressed people get more than their fair share of colds.

Thinning hair. Most people dealing with hair loss can put the bulk of the blame on their genes. But stress certainly doesn’t help. A 2012 study of 98 pairs of identical female twins found that sisters who reported the most stress in their lives also had the most hair loss. Perhaps not entirely coincidentally, thin-

ning hair was also especially common in women who had the most children.

Thinning bones. One of the pernicious side effects of cortisol is that it keeps bones from absorbing calcium. A 2012 Israeli study of 135 post-menopausal women found that depression, anxiety and stress were all associated with low bone mineral density.

Weight gain. Recent studies have found that stress can upset the balance of hormones that help control appetite. But it’s no secret that stressed people often turn to food for comfort. A 2012 study of 457 women by researchers at UC San Francisco found that women with the most stressful lives also had the biggest problems with overeating. latimes.com

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Health

Treating HIV and Preventing It at the Same Time Treatment drugs can do more than improve the health of people with HIV: If administered early, medications can also reduce the spread of the disease to sexual partners and may help stem the AIDS epidemic. But many logistical hurdles stand in the way of making this strategy feasible, affordable and effective, according to experts writing in Tuesday’s edition of the journal PLoS Medicine.

T

he medications in question are antiretroviral therapies, which prevent HIV from multiplying and drastically diminish the amount of virus circulating in the blood. This not only curbs HIV’s assault on the immune system, it also makes it much more difficult for an infected person to pass the virus to someone else.

This dual benefit was recognized last year in a landmark study finding that people with HIV who received treatment early on, before their immune systems encountered much damage, were 96% less likely to transmit the virus to their heterosexual partners than those who received treatment later in the course of the disease, when drug treatment is usually initiated.

One important implication was that HIV treatment and prevention efforts didn’t have to compete for resources, said Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, part of

www.kqed.org

the National Institutes of Health.

The study prompted AIDS experts to rethink their approach to preventing the virus’ spread.

Science magazine named it the “breakthrough of the year.”

But capitalizing on this discovery may prove more difficult than some had hoped. Experts are now divided about whether the treatment-as-prevention approach can essentially halt the AIDS epidemic.

“The field is split about whether it’s really the best thing and it’s going to stop transmission, or if it’s a small part of the puzzle,” said Timothy Hallett, an infectious disease epidemiologist at Imperial College London, who co-wrote one of the new studies.

Australia probably represents a best-case scenario, since antiretroviral drugs are freely available in that country and about 70% of people with HIV take the medication. But even there, the number of new HIV diagnoses has increased from 700 per year in 1999 to 1,000 per year in 2011, said study author David Wilson, an epidemiologist at the

University of New South Wales in Sydney.

Biology and behavior are only two aspects of the treatment-asprevention strategy that were examined in the PLoS Medicine studies. Some of the papers addressed economic considerations, including how long it would take for expenditures on antiretroviral drugs to pay for themselves by preventing costly treatments in people who remain HIV-free. The answer to that question is important for policymakers who are working with limited budgets.

Study authors also suggested that public health officials prioritize getting drugs to sex workers (who could spread the virus widely if untreated) and pregnant women (to reduce transmission to babies and deaths of mothers), among other groups.

However, the authors noted the paucity of data available to evaluate whether these are the right groups to target.

Public health officials in Los Angeles County, which has the country’s second-largest con-

centration of HIV-positive people, hope to make testing a routine part of healthcare services to reach such individuals. Mario Perez, director of the county’s HIV and sexually transmitted disease programs, called early treatment a “cornerstone” of the HIV prevention program.

And while the costs of drug treatment are much lower than they used to be, thanks in part to the development of generic alternatives to expensive namebrand drugs, other prevention methods like circumcision and condom distribution are far less costly.

Experts emphasized that early drug treatment should not be seen as a replacement for other preventive measures.

Though the strategy faces many uncertainties, Fauci said one thing was clear: “Biologically, it absolutely works.” And if it can be successfully implemented, he said, “it would be an absolutely critical part of turning around the trajectory of the AIDS pandemic, in this country and worldwide.”

Boxes of antiretroviral medicines.

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May 2013 Vol.2 No. 5

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Tourism

India Seeks Tourism Cooperation with Bali India wishes to increase tourist visits from Bali to India and vice-versa to deepen the relations between the two countries that have grown well so far.

“W

e must take joint efforts to increase t o u r ist visits from and to the two countries by among others encouraging private airlines to open new routes,” India`s state minister from the ministry for development of the north eastern region and parliamentarian affairs, Paban Singh Ghatowar, said at a meeting with Bali governor I Made Mangku Pastika here on Monday.

He said the Indian embassy in Jakarta and consulate in Bali have even planned to organize a tourism promotion forum at the end of this year. “Besides tourism, we also wish Bali and other regions would also cooperate in increasing capacity building, health, education and trade. India also wishes to contribute to infrastructure development in Bali,” he said.

Ghotawar said India also wished to deepen its cultural relationship with Bali including language, literary and performance arts with a hope a joint cultural event could be held later to show their respective cultural richness.

During the four-day visit to Bali he said he and his delegation wished to see art performances and meet with tourism officials in Bali as well as the district head of Badung and the chairman of the regional legislative assembly. “We are interested to see as many places in Bali as possible and also meet as many people as possible,” he said, adding he would also promote relations between the two countries` youths.

Indian ambassador to Indonesia Gurjit Singh meanwhile said India wished to participate in many events held in Bali this year such as the World Culture Forum, the Bali Democracy Forum and others. “For the World Culture Forum later our delegation will include various cultural groups. We will also be here to attend the Bali Democracy Forum and the World Trade Organization meeting,” he said.

Bali governor Made Mangku Pastika meanwhile said that Bali is very special being part of Indonesia with its majority Moslem population. “Inter-religious tolerance in Bali is very good.

We are also very glad that many international events have been held here,” he said.

Besides tourism, we also wish Bali and other regions would also cooperate in increasing capacity building, health, education and trade. India also wishes to contribute to infrastructure development in Bali.”

India`s state minister from the ministry for development of the north eastern region and parliamentarian affairs Paban Singh Ghatowar (left) and Bali governor I Made Mangku Pastika

Budget of Rp3.7 t Proposed for Sail Komodo ANTARA/Widodo S Jusuf

East Nusa Tenggara (NTT) provincial government has proposed a budget of Rp3.7 trillion for infrastructure development to support the success of Sail Kommodo 2013, an official has said.

“Such an amount of funds is proposed to the central government to support the construction of various infrastructures on Komodo island as the final destination of Sail Komodo participants,” NTT Regional Development Planning Board spokesman Wayan Darmawan said here on Thursday.

According to him, the funds would be used for the expansion of airport, tourist harbor, as well as other tourist facilities on Komodo island. “There is also financial support from NTT regional budget but the amount is not significant enough,” Wayan Darmawan said, adding that all district and city governments in the province were also asked to allocate Rp100 billion from 2012 revised regional budget and Rp125 billion from 2013 regional budget.

He expressed hope that all relevant ministries such as the

W. Nusa Tenggara Gets City Airport The provincial government of West Nusa Tenggara plans to turn the Lombok International Airport (LIA) into a “City Airport”, which is an airport offering integrated services, an official said.

West Nusa Tenggara`s Head of Communication and Information Service Ridwan Syah said here on Monday investment would be needed to realize the plan which will be completed with various facilities such as a shopping center, a hotel and other airport services.

“PT Angkasa Pura has

invited investors to build the facilities in the LIA area measuring 551 hectares to become the second largest airport in Indonesia, after Soekarno-Hatta Airport,” he said.

According to Syah, to support the development of the city airport, the government has been building some supporting infrastructure like asphalt roads and tourist resorts in the southern area of the airport. Meanwhile, the runway would be extended from 2,750 meters to 3,000 meters, he said adding the government would put its funds in the project through the national budget 2013.

“Relating to this plan, we

will rely on the Ministry of Transportation to realize it under the national budget 2013. The plan was the instruction of President Susilo Bambang Yudhoyono to Minister of Transportation E E Mangindaan,” he said.

He added the economic sector has been growing around the area since LIA was operated in October 1, 2011. “The direct impact is an increase in tourist visits to Praya, Central Lombok District to meet the one million tourist visits target set for the Visit Lombok, Sumbawa (VLS) 2012`s campaign,” he said. www.angkasapura1.co.id

The launch of Sail Komodo 2013 was attended by Minister of People’s Welfare, Agung Laksono (center), Minister of Fisheries, Sharif C Sutardjo (right), and Governor of NTT, Frans Lebu Raya (left).

Ministry of Transportation, the Ministry of Public Works, and the Ministry of Maritime Affairs and Fisheries will support the success of this international marine event this year in East Nusa Tenggara.

“The success of Sail Komodo 2013 will depend on the readiness all related ministries to do their basic tasks and functions to support the event,” Wayan Darmawan noted.

He added that all district and

city governments in East Nusa Tenggara are making various preparations for the international marine event of Sail Komodo, which is expected to give positive impact on economic development in the province.

PT Angkasa Pura has invited investors to build the facilities in the LIA area measuring 551 hectares to become the second largest airport in Indonesia, after Soekarno-Hatta Airport.

Xi’an Offers Tourism Cooperation to RI www.britannica.com

The local government of Xi`an City, Shaanxi Province, China, has offered tourism cooperation to Indonesia to further strengthen good cooperation between China and Indonesia.

“Indonesia and Xi`an City have a lot of opportunities for increasing bilateral cooperation, among other things in the tourism sector,” Xi`an Wei Minzhu, the secretary of the Chinese Communist Party, said when receiving Indonesian Ambassador to China and Mongolia Imron Cotan here on Saturday.

“Xi`an City has many interesting tourism destinations. Xi`an is one of China`s tourism destination regions which is worth visiting,” Wei Minzhu said.

“Xi`an has various investment opportunities for investors from foreign countries, including Indonesia. It among others offers opportunities in the manufacturing and electronic sectors,” he said.

“Xi`an has been undergoing a great development. We hope that Indonesia and Xi`an could continue to develop good and broad cooperation in the trade, investment, tourism and other sectors,” the Indonesian ambassador said.

Old city wall of Xi’an, Shaanxi Province, China.

He said that Indonesia also had many interesting regions for tourists such as Bali. It also had abundant natural wealth and

beauty. Therefore, Indonesia and Xi`an share the opportunities to cooperate in the tourism sector, he said.

The number of Chinese tourist arrivals in Indonesia reached 850 thousands in 2012, up 14% from those in 2011. In 2013, Indonesia hopes to receive one million tourists from China.

Indonesian Culinary Tourism Promoted in Spain Indonesia has recently taken part in the 27th Salon de Gourmets Culinary Exhibition in IFEMA, Madrid, as a culinary diplomacy to promote its exports and tourism in Spain, an Indonesian diplomat has said.

The culinary food and beverage exhibition, which was opened by Spanish Minister for Agriculture, Food and Environment Airas Canete, is the biggest exhibition of its kind in Europe, Theodorus Satrio Nugroho, Indonesian Counsel-

or in Madrid told Antara here on Sunday.

Theodorus said that the exhibition was attended by 1,056 participants from 73 countries and was visited by 76,000 visitors with a total transaction of 194 million euro.

He said that the Indonesian stand in the expo which was organized by the trade attach and the Indonesian Trade Promotion Center in Spain presented six private companies such as Coffindo for coffee product, OT for bottled mineral water and Maesindo for attire ornaments and cooking accessories.

Businessmen who took part in the exhibition said the Spanish market had not yet been well-known to the Indonesian people. Therefore, they appreciated very must the initiative of the Indonesian Embassy in Madrid to take part in the Salon de Gourments for the first time.

They said that the Indonesia’s participation in the exhibition was a first step so that transaction value was not yet big for Indonesia food products.

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Travel

The Hill of the Sun in Nias

A 30-meter building stood majestically the piles of stones. Its gigantic size stood out among other houses in the area. The local people call it the Big House or Omo Sebua. Omo Sebua is a house where the local chief lives. It’s also often used as a meeting venue for aristocrats. In front of the Omo Sebua, three wooden dragon heads were placed. They symbolize the power of the owner.

Text: Iqbal Alaik Photos: Alaik, Vannico

I

immediately headed to Bawomataluo village, Teluk Dalam district, South Nias, once I landed on Nias island. The village which is known as the “Hill of the Sun”, stood tall at 400 meters above the sea, up on a hill.

This morning I planned on walking through every corner of the village. Being in this village feels like being in the past due to the strong traditional environment as houses are built with traditional Nias architecture. Most of the houses still maintained their original architecture and are made of wood.

Traditionally houses in Nias use thatched roof but many have replaced it with tin roofs because thatched roofs are more expensive and more difficult to maintain.

I arrived in front of a pile of stones that had been arranged neatly up to 2.1 meters high.

The stones are normally used as a hurdle in a stone jumping ritual. The stone jumping ritual is a test of maturity for the Nias youths who would leave for war.

The stones are not that high but they were quite intimidating.

A 30-meter building stood majestically the piles of stones.

Its gigantic size stood out among other houses in the area. The local people call it the Big House or Omo Sebua. Omo Sebua is a house where the local chief lives.

It’s also often used as a meeting venue for aristocrats. In front of the Omo Sebua, three wooden dragon heads were placed. They symbolize the power of the owner.

It took about four years to build the Omo Sebua. When the house was inaugurated, 82 pigs had to be sacrificed. Now the cheek bones of those pigs are arranged neatly in the house. The 10x10 meter house is supported by 96 ironwood logs. Uniquely

enough, not a single nail is seen on this building and the building is strong and the structures are quake resistant.

The Bawomataluo village was holding a series of major cultural events. Hundreds of Bawomataluao residents gathered and wore traditional Nias costume which is dominated by black, golden yellow and red. A spear in the right hand, a shield in the left hand. The kalabubu is hung on the neck. The kalabubu necklace is made of coconut shells and is not just an ornament; it also served as a shield to protect the neck from the sword heading its way.

Everyone stood in a line and ready in their positions. The knights who wore bird-shape head ornaments stood in the front line. They all moved and stamped their feet to the ground and yelled out a song as soon as the chief yelled out his command. The song they sang was meant to lift up their spirits. Yes, that was a war dance performance or the Maluaya dance.

The war dance was followed by a dance performed by the women who greeted their men who came home from war. The movements were modest and soft and gave a sense of peacefulness. Tourists were asked to join the dance.

Shortly afterwards some of those brave young men started to prepare themselves and ready to show their skill to jump over the stones. One of the men took a position and ran in a flash, picked up his speed as he approached the stones and up he jumped.

The young man was able to jump over the stones gracefully and landed on his two feet.

Nias is also known for the beauty of its nature. The waves at the Sorake and Moale beaches were able to awe surfers from across the globe. It also has the Namo Sifili Dua river that has 12 ponds with their untouched beauties. Nias is truly heaven at the western coast of Sumatra.

I arrived in front of a pile of stones that had been arranged neatly up to 2.1 meters high.

The stones are normally used as a hurdle in a stone jumping ritual. The stone jumping ritual is a test of maturity for the Nias youths who would leave for war. The stones are not that high but they were quite intimidating.

The war dance was followed by a dance performed by the women who greeted their men who came home from war. The movements were modest and soft and gave a sense of peacefulness.

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May 2013 Vol.2 No. 5

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Culture www.detik.com

VP Opens Dayak Culture Week 2013 V

The event showcased regional potential products, Kalimantan regional innovative products, in addition to Kalimantan Investment Forum 2013, Dayak Art Carnaval 2013, Dayak Innovation Award 2013, and Dayak Night & Fun 2013.

ice President Boediono opened Dayak Culture Week 2013 at Senayan Sports Stadium here on Satur-

day.

Lasting from April 27-30, the event showcased regional potential products, Kalimantan regional innovative products, in addition to Kalimantan Investment Forum 2013, Dayak Art Carnaval 2013, Dayak Innovation Award 2013, and Dayak Night & Fun 2013.

In his opening address, the vice president asked all parties, particularly the younger genera-

tion, to understand, accept, and respect the national cultural diversity. “The strands of emerald of the Equator will remain sturdy and solid if every link is jointly tied together with mutual respect,” the vice president noted.

Present at the opening ceremony were Forestry Minister Zulkifli Hasan, Research and Technology Minister Gusti Muhammad Hatta, and Deputy Minister for Tourism and Creative Economy Sapta Nirwandar.

Also present were Central Kalimantan Governor Agustinus Teras Narang, who is concurrently the president of the Na-

tional Council Of Indigenous Dayak, West Kalimantan Governor Cornelis, East Kalimantan Governor Aswan Faroek Ishak, and South Kalimantan Governor Irianto Lambrie.

Boediono said that Indonesia is a nation with cultural diversity and that the Dayak Culture Week 2013 was one of the national identities in the middle of the hustle and bustle of globalization.

The vice president opined that the event was a good opportunity for all national elements to mutually understand, respect, and love the cultural diversity.

East Kalimantan to Hold Int`l Folklore, Art Festival This Year

Yogyakarta Cultural Park to Present Traditional Art Performances

East Kalimantan will organize “Erau International Folklore and Art Festival (EIFAF)” in Tenggarong, Kutai Kartanegara District, East Kalimantan Province, from June 30 to July 7, 2013.

The festival will among other things feature “Erau” ceremony, an annual sacred ceremony held at the palace of Kutai Kartanegara Ing Martadipura Sultanate, the East Kalimantan tourism office said in a press statement on Sunday.

The folklore and art festival will also be highlighted with art and handicraft exhibitions, traditional sports competitions, and a bazaar. The handicraft

Yogyakarta Cultural Park (TBY) will present traditional art performances as art programs along 2013.

“We will present traditional art group of Langen Mendrawanaran on March 31,” Chairman of the Art Performance Committee of TBY Sri Eka Kusumaningayu said here on Thursday.

She said there were four groups of arts that will perform on March such as the dance groups of Wirogo Apuletan, karawitan traditional Music group of AMPTA and traditional arts group of Langen Mendrawanaran.

and arts expo called “Kutai Kartanegara Art & Craft Expo”, will showcase works of arts such as handicraft, paintings and sculptures of Kutai Kartanegara and from other countries participating in the event.

Tenggarong City, the capital of Kutai Kartanegara regency, was once the administration center of the Sultanate of Kutai Kartanegara Ing Martadipura.

The arts festival will be held in conjunction with a gathering of CIOFF (International Council of Organizations of Folklore Festivals and Folk Arts).

CIOFF is an international non-governmental Organization

Around 215 representatives of eight countries have so far confirmed their participation in the event. The countries are Senegal, USA, Russia, Thailand, India, Turkey, Algeria and Egypt.

(NGO) in formal consultative relations with UNESCO. Created in 1970, the duty of CIOFF is safeguarding, promotion and diffusion of traditional culture and folklore.

Around 215 representatives of eight countries have so far confirmed their participation in the event. The countries are Senegal, USA, Russia, Thailand, India, Turkey, Algeria and Egypt.

The Kutai Kartanegara district government, the local cultural and tourism office, and CIOFF expect to receive up to 250 representatives from 10 countries to participate in the cultural arts event.

During their stay in Tenggarong, EIFAF`s participants will also perform traditional arts from their respective countries in different places, including at the main stage in Mahakam River side. The participants will also able to watch the Dayak tribe`s art performance at the Rumah Lamin arena on Kumala Island.

EIFAF representatives will also participate in a tree planting in the area of Kumala Island, and in Kutai traditional sports such as kelom panjang (clog), behempas bantal, belogo, enggrang, and other attractive traditional games.

There are four performing arts groups every month, so that there would be 48 groups to perform in 2013. “The event was held for public and free of charge, the goal is to introduce the traditional arts to community,” she said.

Kusumaningayu expected that the effort to introduce traditional arts could encourage community awareness of local art that is starting to disappear due to television programs. “Hopefully this activity could encourage traditional arts regeneration process, development of arts and loved by people,” she said.

Tourism Anniversary at Prambanan Temple The President Post/Heros Barasakti

Indonesia has marvelous tourism potentials in terms of culture, art, natural wealth, and historical heritage. But if compared with other Southeast Asian countries such as Malaysia and Thailand, the number of tourist visits to Indonesia is still far behind. It requires creative and innovative thinking to boost local and foreign tourists to Indonesia, one of them is by convening a cultural art performance entitled “Pandom Suci Wahyu Sejati” held by Tidar Heritage Foundation on April 26, 2013.

The cultural art performance was located at Lapangan Garuda in Prambanan Temple. It was a form of gratitude of SD Darmono, the founder of Tidar Heritage Foundation (THF), to God Almighty on his 64th anniversary.

Professor Komaruddin Hidayat, one of the founders of THF, on his welcome speech said that THF is built upon a noble desire, among others, realizing that Central Java, particularly Magelang, is very rich in cultural and natural heritage, the peaceful social atmosphere and the legend/ myth of Tidar, which is so symbolic.

“Through this foundation we want to contribute to the development and the preservation of cultural heritage of Indonesia,” said Komaruddin.

The founders of Tidar Heritage Foundation have made a mission of promoting and spreading Tidar’s natural beauty to the world as a way of promoting peace and harmony through tourism, culture and the interfaith learning center while creating jobs for the needy.

On the same occasion, Cosmas Batubara delivered his impression on SD Darmono, the founder of the industrial estate Jababeka.

“Pak Darmono, in every step of his life, appreciates the meaning of culture. I noticed that his thoughts are always several steps ahead, and he see things that are indispensable for the future,” said Cosmas.

The cultural arts performance, said Cosmas, is expected to make us stronger in keeping our identity and culture in facing the world’s turbulence towards globalization.

“We always support Pak Darmono’s activities in developing culture, since I think it is one form of donation that we need so we could exist in the midst of globalization,” said Cosmas.

Furthermore, Cosmas said that Pak Darmono is a figure with profound humanity. “His friendly attitude and thoughts of the nation’s unity are always seen. Hopefully, Pak Darmono’s great work could enrich our nation,” Cosmas concluded.

Professor Komaruddin Hidayat, one of the founders of THF, on his welcome speech said that THF is built upon a noble desire, among others, realizing that Central Java, particularly Magelang, is very rich in cultural and natural heritage, the peaceful social atmosphere and the legend/myth of Tidar, which is so symbolic.

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Education

Internship Program is Important for Students’ Fundamentals: PresUniv Alumnus The President Post/Rians Rivco

PresUniv has internship programs that help to build good fundamentals. During their study, all students will have two semesters on Internship Programs planned and scheduled through consultations with Internship & Career Center in President University.

A

s an alumnus of the first batch of President University (PresUniv), Paul Luo is now embarking on an exciting career in Jakarta.

Paul comes from China and his first visit to Indonesia was as a scholarship student at PresUniv. He took IT as his major at the time when PresUniv only had two majors, namely IT and electrical engineering.

Along with 44 other students, Paul went to PresUniv as the first batch with minimum facilities.

“Unlike now, which provides a boarding house, we then used to stay in rukos and hotels,” said Paul.

Along with 44 other students, Paul went to PresUniv as the first batch with minimum facilities.

From the total of 45 students in his batch, only six people were Indonesian, with the rest coming from China and Vietnam. According to Paul, since the group is not too large, it enjoys a lot of attention from lecturers and university staffs.

Paul is now working in a company engaged in the management of mining and energy investment. He has been entrusted

President University to Spread Its Wings to Middle-East The University of Sunshine Coast Australia conducted a visit to President University, bringing two representatives from Iraq and Yemen Embassy in Malaysia, last April.

Regarding the visit, President University had arranged a meeting to welcome all the representatives as well as two agents from Enhance Track working in Malaysia who are responsible for PresUniv’s student recruitment from the Middle-East.

The meeting was arranged to discuss the possibility of collaborations and students exchange

between the three parties with President University. Australia’s Sunshine Coast University is offering a two-plus-two program where students could spend their two years studying at President University and two remaining years at Sunshine Coast University Australia, and they would be given a degree directly from Sunshine Coast Australia. As for Iraq and Yemen, they are currently seeking the possibility of collaboration with President University. Yemen is at the moment planning on sending some of their students to study at President University.

Attending the meeting were Vice Rector I Dr. Vincentius Winarto, Ph.D; Vice Rector III T. Manivasugen; Head of Public Relations Jhanghiz Syahrivar. Faculty members of President University welcomed the Director of International Relations of USC International, Ms. Emi Tamba, and the Middle-East representatives: Cultural Advisor of the Cultural Attaché of the Embassy of the Republic of Iraq Prof.

Dr. Hassan Hashim Salman and Cultural Counselor of the Cultural Attaché of the Embassy of the Republic of Yemen Eqbal Saeed Al-Alas. www.president.ac.id

Faculty members of President University welcomed the Director of International Relations of USC International, Ms. Emi Tamba, and the Middle-East representatives: Cultural Advisor of the Cultural Attaché of the Embassy of the Republic of Iraq Prof. Dr. Hassan Hashim Salman and Cultural Counselor of the Cultural Attaché of the Embassy of the Republic of Yemen Eqbal Saeed Al-Alas.

New School Opened through Indonesia-Australia Education Partnership The SMPN 2 Parung is opened as a new chapter for Parung’s children, on May 1st.

SMPN 2 Parung is one of 451 schools that have been built or extended under the Education Partnership since the middle of last year.

SMPN 2 Parung was built by the local community with financial support from Australia.

Through its Education Partnership with Indonesia, Australia will build or extend up to 2,000 junior secondary schools across Indonesia. This will improve access to education for approximately 300,000 more children in

rural and remote areas of Indonesia.

For over seven years, the students and teachers of SMPN 2 Parung have been sharing facilities with a nearby elementary school. With the new school opening, junior secondary students will finally have their own learning facilities.

“Australia is working with the Indonesian government to build good quality and more easily accessible schools, because all Indonesian children deserve a good education,” said Head of AusAID Indonesia, Jacqui De Lacy.

This week 129 district edu-

cation offices and Indonesia’s Ministry of Education signed a Memorandum of Agreement for Australian-funded new school construction in 2013.

Other elements of Australia’s Education Partnership with Indonesia include skills training for 293,000 school principals, supervisors and local government education officials to deliver better quality education services; support for 1,500 Madrasah to be accredited against Indonesian government standards; and provision of research and analysis to help decision makers improve education programs and policies.

to lead and manage a variety of projects, and now focuses more on investment and seeks new projects.

Paul said that education contributes to building a person’s fundamentals. “It does not matter what major you take in college, if the fundamentals are built properly, one will be fine anywhere, in any job. Good fundamentals make you disciplined, responsible, and know what you’re doing,” he said.

Moreover, PresUniv has internship programs that help to build good fundamentals. During their study, all students will have two semesters on Internship Programs planned and scheduled through consultations with Internship & Career Center in President University.

President University is supported by 1,500 multinational companies from 30 countries mostly located in the Jababeka industrial area.

Paul said PresUniv internship program helps students to get familiar with the working environment, and also helps students to cope with their daily personal lives.

“My internship experience was very helpful especially in learning to live independently. When I took my internship in Jakarta, I did everything alone including going everywhere using public transportation,” said Paul.

Regarding Indonesia’s education in general, Paul stated that

as Indonesia is a religious country, the inhabitants learn primary education from religion.

“No wonder the people of Indonesia have very good manners,” said Paul.

However, for higher education such as undergraduates, master’s, and doctorates, Indonesia still needs further development because it is still below Singapore and China. But Indonesia will soon be on a par with those countries as it has lots of potentials, said Paul.

UGM Champion in International Robotic Competition The UGM team beat teams from nine countries, including China, the U.S., and of Eastern Europe.

The University of Gadjah Mada (UGM) robotic team booked success in two international robotic competitions in the United States.

The competitions are the Trinity College Fire Fighting

Home Robot Contest and Robo Games 2013 Olympics.

They were the first winner in the Trinity Fire Fighting Robot Contest, 6-7 April, in Hartford City, Connecticut. They also won two gold medals for Fire Fighting Robot and Natcar Robot and 1 silver for Balancer Robot in Robo Games 2013 Olympics of Robots, 19-21 April, in San Mateo, California.

The team consists of Malik Khidir, Agus Budiyanto and Bachtiar Permana.

Chief of the Delegates as well

as Dean of Faculty of Natural Sciences and Maths, Pekik Nurwantoro, Ph.D., commented positively on the achievement.

At Trinity, the UGM team beat teams from nine countries, including China, the U.S., and of Eastern Europe.

“The UGM team made a spider-like robot, which is quite unique,” he said The team brought six to be contested in the U.S. Separately, Student Affairs Director Dr. Senawi said the achievement was the fruit of hard work, disci-

pline and solid cooperation before the competition.

“We had involved psychology students to encourage solid relations among team members,” he said.

Indonesian Computer University (Unikom) and the Bandung Polytechnic State University (Polban) also participated in the competitions.

In the Fire Fighting Home Robot Contest, Unikom and Polban won one silver medal and one bronze medal, respectively.

www.thepresidentpost.com

May 2013 Vol.2 No. 5

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Technology

Futuristic Eyeglasses Are Here

Essentially, Google Glass is a camera, display, touchpad, battery and microphone built into spectacle frames so that you can perch a display in your field of vision, film, take pictures, search and translate on the go.

OPPO Reveals Three New Devices in Indonesia The President Post/Reza Ganesha

OPPO officially introduced the establishment of their company in Indonesia and the launch of their smartphone lineup.

OPPO is a young-spirited international brand with a long history of serving customers in North America, Europe and Asia, delivering high-end products that receive high ratings from experts all around the world.

Since entering the mobile market in 2008, OPPO has been restless in their pursuit of the latest technology, the highest quality and the most user friendly products. Beside focusing on branding, OPPO also focuses on responding users’ needs, said Jet Lee, the CEO of OPPO Indonesia.

OPPO is highly regarded by professionals and celebrities around the world due to its cutting-edge innovations, premium design and meticulous attention to details. International stars such as Super Junior, 2PM and Leonardo DiCaprio presented the smartphone on several occasions. The grand launching in Indonesia was joined by two talented stars: Nicholas Saputra and Sandra Dewi. Sandra Dewi will also take part in the flashmob event, emanating the young and energetic spirit of OPPO. The products use only highest quality components available on the market. Close partnerships with leading international partners ensure that

OPPO has the latest and best hardware available.

Uniquely, OPPO designs, develops, manufactures, markets, and sell its products by itself.

OPPO Indonesia has full control over the entire supply chain, from its factories to the hands of its customers. This way, it can ensure that only the best quality products reach the customers. The flagship device that will be available soon is OPPO Find 5, among two other models that will form the complete offering for the Indonesian market.

OPPO

Find 5 is powered by powerful quad-core Qualcomm Snapdagon processor. OPPO Find 5is the first phone that features a brilliant 5-inch 1080p display with OGS (One-Glass Solution) that enables lag-less response to touch, and sharp visuals with 441 ppi pixel density. The screen will enhance multimedia experience, from web browsing and watching video to reading ebooks. Users can capture amazing pictures with its 13 Megapixel camera, and Find 5 is also the world’s first smartphone with hardware-based HDR camera.

OPPO takes video recording to the next level by adding Full HD and 120 fps recording capability, a feature not found in other brands’ phones.

Streaming what you see on t h e

G

oogle Glass is a project started by Google that is intended to bring hands-free display technology to the general public. By utilizing voice commands, users can interact with their Google Glass device to get information from their phones, participate in Google+ Hangouts or to get information from the internet. With wireless data connection, Google Glass adds an augmented-reality overlay to whatever you’re looking at, automatically bringing up relevant information from various Google sources.

This is still a prototype project, but Google hopes to bring it to consumers sometime in 2013.

Back in early 2012, before the world had heard of Google Glass, the tech world was ablaze with rumors that the search giant was beavering away on augmented reality goggles.

Google Glass is an attempt to free data from desktop computers and portable devices like phones and tablets, and place it right in front of your eyes. Essentially, Google Glass is a camera, display, touchpad, battery and microphone built into spectacle frames so that you can perch a display in your field of vision, film, take pictures, search and translate on the go.

Google Glass uses display technology instead to put data in front of your vision courtesy of a prism screen. This is designed to be easily seen without obstructing your view.

As well as Google’s own list of features, the early apps for

Google Glass provide a neat glimpse into the potential of the headset. You can use the Google hangout software to video conference with your friends and show them what you’re looking at. You’ll also be able to use Google Maps to get directions, although with GPS absent from the spec list, you’ll need to tether Glass to your phone.

This Google Glass has specification with a mooted 640x360 display, the builtin camera is a 5MP snapper that can film at 720p, 16GB of flash memory built into the device, Bluetooth and WiFi will be built in.

The Google Glass Explorer will costs $1,500 a piece, the consumer versions, which are expected to arrive by the end of 2013, are expected to be a little cheaper.

The Role of Technology in Marketing Transformation Since entering the mobile market in 2008, OPPO has been restless in their pursuit of the latest technology, the highest quality and the most user friendly products. Beside focusing on branding, OPPO also focuses on responding users’ needs Jet Lee CEO OPPO Indonesia phone to the TV is possible and easy through Wireless (Wi-Fi) Display capability. NFC-ready hardware means you can exchange data effortlessly simply by placing another phone next to it. All of this sophistication packed inside an exceptionally slim body, measuring only 141.8x68.8 x 8.86mm in dimension and weights a mere 165g.

It’s the perfect companion for photography or videography enthusiasts that require lots of mobility.

Besides OPPO Find 5, OPPO Indonesia announced the availability of OPPO Find Way and OPPO Find Piano in Indonesia.

By T. Manivasugen MBA Nowadays, technology plays a vital role in every sphere of life. It is developing rapidly that makes changes in every aspect of life. Some of the latest developments are faster Internet connection, digital photography, interactive media, etc. The development of technology has made marketing become easier and flexible. Information can be shared at the speed of light.

The technology involved in mobile phones has developed really fast over the last few years. As a result, the use of mobile and cellular phones increases at a staggering rate in the ever expanding world of consumerism. Some of the big players such as Apple, Samsung and Black Berry have enjoyed a significant growth in their sales in recent years. One of the reasons is because consumers tend to change their handset with the latest edition to keep up with the trend.

Social media is also advancing rapidly and becoming an integral part of people’s life. Sites such as Facebook, Twitter, Path, Instagram, Skype, Youtube have changed people’s life like never before. The world has become smaller and everyone can stay in touch easily without any hassles. These sites enable people to share the journey of their life, music, video and personal pictures with their relatives and friends anytime and anywhere.

They can build and maintain their network effectively and efficiently.

The advancement of technology has a significant impact on marketing in many ways. New techniques have been developed to improve the Return on Marketing and profitability. As a matter of fact, Offline marketing campaigns will be more effective if used in synergy with an online marketing campaign.

Online marketing is an incredibly powerful tool to segment the prospects and deliver targeted advertising.

The internet is a powerful medium for online marketing because it’s accessible at anytime

by anyone and the Internet Search Engine (SEO) can dramatically increase the traffic to any particular websites or blogs. It’s needless to say that the SEO is very powerful in the arena of business and especially marketing for that business. Many marketers have been shifting their marketing budget to the web over the past few years. The results of online marketing campaign are almost immediate. Some of the most popular tools for the online marketing campaigns are: Google AdSense, Overture, and Looksmart. Other methods include affiliate programs and targeted website advertising.

All in all, Marketing is evolving at a much faster rate now. In order to attract new customers, retain and grow current customers, businesses have to adapt to the new form of marketing and the fast and constant technological changes.

The writer is Vice Rector 3, President University. He can be reached at vasu@president.ac.id

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May 2013 Vol.2 No. 5

www.thepresidentpost.com

Golf

Austrian Bernd Wiesberger Wins Indonesian Masters The President Post/Rians Rivco

Bernd Wiesberger shot a 5-under 67 in the final round Sunday (5/5) to win the Indonesian Masters by a stroke over British Open champion Ernie Els.

W

iesberger won his second title in Asia courtesy of some exquisite ball striking as he totalled 15-under-par 273 at the $750,000 Asian Tour event which was staged at the majestic Royale Jakarta Golf Club.

“I was struggling in the beginning after my birdie on one. But at the turn I got a bit of momentum going because I was confident with my ball striking,” said Wiesberger.

Els, ranked 24th in the world, in second place after a 4-under 68 for 274 at the Asian Tour event was one-over after five holes but put on a battling display with birdies on six and nine followed by an eagle three on 12 which he putted from 30 feet from the fringe. He birdied the last to finish sole second.

“I played and fought hard. I wasn’t quite at my best but had a good time. I didn’t hit my iron shots close enough especially at the start. I was one over through five holes and had to battle back all the time,” said Els. Wiesberger opened with a birdie but bogeyed the fourth hole before making two more

birdies on Nos. 8 and 9. Both Wiesberger and Els had an eagle on the 12th.

Japan’s Daisuke Kataoka (70) was third with a 275. His third place result matched his career’s best on the Asian Tour at the 2011 Taiwan Masters.

Arwin Rasyid, President Director of CIMB Niaga, was delighted with the third staging of the CIMB Niaga Indonesian Masters as it has grown into Indonesia’s most prestigious golfing event.

“When CIMB Niaga became the title sponsor to the CIMB Niaga Indonesian Masters in 2012, we wanted to be part of an event that is the nation’s most prestigious. I stand here today proudly to say, we have achieved our goal. Thanks to the support of the other event partners and of course, you, the golfing fans, we see the end of yet another fantastic edition of the CIMB Niaga Indonesian Masters. We have certainly seen golf at its finest over the past four days and congratulations to Wiesberger for his spectacular win today. It was an exciting finish and you certainly earned yourself the title of the CIMB Niaga Indonesian Master 2013!”

(Rians Rivco/TPP)

Scores after round 4 of the CIMB NIAGA Indonesian Masters being played at the par 72, 7340 Yards Royale Jakarta GC course: 273 - Bernd WIESBERGER (AUT) 67-72-67-67.

274 - Ernie ELS (RSA) 68-70-68-68.

275 - Daisuke KATAOKA (JPN) 70-69-66-70.

278 - Thongchai JAIDEE (THA) 69-65-75-69.

280 - Angelo QUE (PHI) 70-70-70-70, Ryan MCCARTHY (AUS) 70-70-70-70, MO Joong-kyung (KOR) 72-69-68-71.

281 - Unho PARK (AUS) 68-72-70-71, HWANG Inn-choon (KOR) 66-74-70-71, Jake HIGGINBOTTOM (AUS) 69-69-71-72, Rahil GANGJEE (IND) 71-6969-72.

282 - Anthony KANG (USA) 73-71-69-69, Scott BARR (AUS) 68-68-75-71, Gunn CHAROENKUL(THA) 69-72-70-71, Jason KNUTZON (USA) 68-74-69-71, Wade ORMSBY (AUS) 69-68-73-72, HUNG Chien-yao (TPE) 70-68-70-74, Richard T. LEE (CAN) 72-68-67-75.

283 - Rikard KARLBERG (SWE) 73-71-70-69, Iain STEEL (MAS) 70-73-70-70, Kodai ICHIHARA (JPN) 73-70-69-71, Arnond VONGVANIJ (THA) 68-7469-72.

Borobudur International Golf & Country Club

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

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

T

he Borobudur International Golf & Country Club is located in Magelang a town in the valley of Mount Tidar, 40 km north of Yogyakarta and 60 km south of Semarang.

Furthermore, this golf course is located near a mountain with interesting sights and cool air. The fairway is so narrow, it requires precision play. In this course, each hole is unique. For the record, the Borobudur International Golf & Country Club is known for its firstclass services and its young caddies.

The Borobudur International Golf & Country Club was elegantly designed by the world class golfer Douglas Duncanson, and

completed by experts in golf course building of PT Jababeka Golf Cikarang. This golf course is one of the best golf courses in Central Java and Yogyakarta in addition to Merapi Golf Course and Golf Course Gombel.

The Borobudur International Golf & Country Club used to be the Persatuan Golf Tidar, which was a simple golf course of 9 holes. In August 2006, the golf course began its renovation. In April 2007, Army Chief of Staff General Djoko Santoso officially declared the golf course open. On June 2, 2007 Minister of Culture and Tourism Jero Wacik, officially declared the new name of the golf course Borobudur International Golf & Country Club.

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

www.borobudur-golf.com