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

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INTENATIONAL

BUSINESS

SPECIAL REPORT

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– Page B1

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APEC Leaders Agree on Bali Declaration for Economic Growth

Indonesia, South Korea Hold Business Meeting

A Portrait of CEOs of State-owned Enterprises Emirsyah Satar President Director of PT Garuda Indonesia Tbk.

DINO PATTI DJALAL

The Next President Should Be President of 600 Million Citizens TPP/Heros Barasakti

Indonesian Ambassador to the United States Dino Patti Djalal said that whoever becomes President of Indonesia in 2014 should be able to be a president for 600 million citizens of ASEAN countries. lihat videonya di: www.thepresidenttv.com

ccording to Ambassador Dino, ASEAN countries are expecting Indonesia to be an anchor to determine the direction of ASEAN. Therefore, Indonesia’s next president must also able to lead the people of ASEAN countries. In fact, Jakarta as the capital of Indonesia has been dubbed “The Capital City of ASEAN”. Dino delivered his thoughts at an event entitled “One Hour with Dino Patti Djalal” in Jakarta (18/9). At the event, Dino, who is participating in the Democratic Party presidential convention, also delivered six essential points for Indonesia to be excellent in the 21st century. First, superior nationalism. According to Dino, the entire people of Indonesia love their country and possess nationalism. “The best way to show our

dedication is by giving the concept of developing Indonesia. Indonesia is spirit-loaded but poor in concept,” he said. Second, supreme internationalism. Dino believes that Indonesia’s wealth lies not only in natural resources but also in its human resources (HR). “We must see the world not as a threat but as sources and opportunities,” he said. He added that a nation which could embrace and reach the world would be a winner. “Most importantly, we have to stay away from anti-foreign attitude. This attitude could be a hindrance for Indonesia to excel,” said Dino, who was born in Belgrade, Yugoslavia, 10 September 1965. Third, meritocracy. Dino explained that meritocracy is a system that refers to the ability of an individual. He hopes this system can be a major agenda for the next 5-10 years. “We should be able to create a system that is not elitist,” he said.

Indonesia in 1945 was a nation of revolutionaries’ who became the center of the movement. Now, in the 21st century, Indonesia will become a nation of leaders, entrepreneurs, innovators and champions.”

At an event entitled “One Hour with Dino Patti Djalal” in Jakarta (18/9), Dino, who is participating in the Democratic Party presidential convention, also delivered six essential points for Indonesia to be excellent in the 21st century. According to him, democracy and meritocracy should be hand in hand in the 2014 elections. “The challenge for 2014 is that this nation must able to choose leaders without primordial consideration,” he said.

Fourth, smart regulations. Dino said the fate of this nation can be changed by good regulations because hundreds of existing regulations are currently clogging productivity of Indonesia. However, he admits there are

also good and proper regulations. “When we want to assure the supremacy of Indonesia, look at the regulations first. Never underestimate regulations,” he said.

Jababeka to Build Industrial Estate, Port Supporting Facilities in Bengkulu TPP/Heros Barasakti lihat videonya di: www.thepresidenttv.com

With over 24 years of experience as a pioneer in the management of industrial area, PT Jababeka Tbk in cooperation with PT Pelindo II (Indonesia Port Corporation) signed an MoU on land management owned by Pelindo II in Bengkulu. The MoU signing was held on Tuesday (10/9) at Pelindo II office, Tanjung Priok, North Jakarta. The MoU was signed by SD Darmono, President Director of Jababeka, and Richard J. Lino, President Director of Pelindo II. Lino said that the feasibility study will be conducted by Jababeka on whether it will still be used as an industrial area or be prepared to be a SEZ (special economic zone). “Obviously, the use of the land will strengthen the functions of Bengkulu port,” he said. The land is located in the port area of Baai Island with an area of 1,000 hectares. SD Darmono said that the business mechanism with Pelindo II is a business-to-business relationship. According to him, to begin the construction of the region, his company will build an industrial area and port supporting facilities. At the same time, a business unit of Jababeka, PT Cikarang Inland Port (CIP), which is focused and engaged in the oper-

At the same time, a business unit of Jababeka, PT Cikarang Inland Port (CIP), which is focused and engaged in the operation of integrated port services in Cikarang Dry Port (CDP), also formed a partnership with Pelindo II.

The signing of MoU by President Director of Jababeka SD Darmono (center) and President Director of Pelindo II Richard J. Lino (right) witnessed by Vice President of Jababeka BudiantoLiman (left). ation of integrated port services in Cikarang Dry Port (CDP), also formed a partnership with Pelindo II. The MoU was signed by President Director of CIP Hadi Raharja and President Director of Pelindo II Richard J. Lino. In this cooperation CDP will be used as the extension of Tanjung Priok Port. CDP has customs services and other port facilities. The optimization of CDP

is expected to be improved with this cooperation. According to Lino, the use of CDP, which has a capacity of up to 2 million TEU’s per year, is expected to reduce congestion and the duration of loading and unloading process at Tanjung Priok Port, which is due to limited land in Tanjung Priok. Lino added, “Pelindo II might eventually rent Cikarang Dry Port. So, Pelindo does not have

to buy land to accommodate container capacities which increase 50% every year. The operational of Cikarang Dry Port is only 10% now.” President Director of Jababeka SD Darmono said the cooperation schemes undertaken by Pelindo II will still be assessed ahead of providing the leasing option of Cikarang Dry Port. “We are optimistic as CDP

is highly qualified to create a smooth flow of goods needed by industries as well as service users of Tanjung Priok Port,” he said. Behind the excellent service under one roof of CDP, Jababeka has to disburse over Rp 500 billion to build it in several stages. Of the total area of 200 hectares owned by CDP, 70 hectares were built for a port and a terminal while 130 hectares were built for a logistics park. CDP has built and operates 20 hectares with an installed capacity about 400,000 TEUs/year that can be increased to 2,000,000 TEUs/year.

Fifth, education and innovation. Dino stated that history proves that education and innovation can make a state superior. “The President of 2014 shall be the president of education and innovation. We need to

look at the education system,” he said. Sixth, leadership, which Dino says is the key to realizing the excellence of Indonesia. “I want to see young men who are still idealistic, developed, reformed, and dare to take risks,” he said. Ambassador Dino concluded that “Indonesia in 1945 was a nation of revolutionaries’ who became the center of the movement. Now, in the 21st century, Indonesia will become a nation of leaders, entrepreneurs, innovators and champions.”

Quotes and Thoughts SD Darmono, President Director of PT JababekaTbk

The capital city of Indonesia should be moved as soon as possible. We don’t have to build a new city, we could utilize an existing one, for example Yogyakarta. Besides its similar construction to Jakarta, Yogyakarta was also the temporary capital city of Indonesia at the time of Sukarno in 1949. Dahlan Iskan, Minister of SOEs

Moving the capital city is a good idea. Malaysia and Brazil are examples of success countries that moved their capital cities. But the plan should be reviewed carefully. Experts should be involved to decide on the new capital city. Ciputra, President Commissioner of Ciputra Business Group

It is not necessary to move the capital city right now. The solution is to improve its urban planning and reduce floods and the traffic jam in Jakarta. So, one day if we should want to move the capital city anyway, we will leave Jakarta in good shape.

October 2013 Vol. 2 No. 10

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Opinion

The Effect of Neo-Realism Ideology and Indonesia’s Position In the course of time such as with the end of the Cold War and now with the revival of China, neo-realism became an ideology which recommends every country to form an alliance with countries considered able to protect them. In Indonesia’s context, several government elites, academicians and think tanks recommended Indonesia to seek protection from and to support the United States.

In the course of time such as with the end of the Cold War and now with the revival of China, neo-realism became an ideology which recommends every country to form an alliance with countries considered able to protect them. In Indonesia’s context, several government elites, academicians and think tanks recommended Indonesia to seek protection from and to support the United States. An American neo-realist, John Mearsheimer (2010), predicted that the United States will become the regional police in Asia Pacific and that it would get support from Indonesia, South Korea and Japan. Such a prediction was already becoming evident as 60% of the United States’ power are already concentrated in Asia-Pacific and served as the police to deal with political ‘criminals’ such as China and North Korea.

By Musa Maliki

ome members of the elites in the government and academics are aggressively promoting security, global strategy and military issues. On top of that, Indonesia has also been pushed to side with the world’s biggest political power, the United States. The consequences that Indonesia has to take if it resorted to such a policy are that our free and active foreign policy will have to be switched to survival politics when dealing with global security threats. Such logic is called neo-realism. Initially, neo-realism was a dominant theory applied in international relations studies in almost every country in the world (Waltz, 1979). However, when the theory was deemed as the mainstream in how to perceive the global political reality, the neo-realism theory was turned into an ideology without any dispute. It was this ideology that made all countries compete to survive by improving their military strength and for countries deemed to be weak to form an alliance with stronger countries.

Indonesia’s Position

The hegemonic transition between 2025 and 2045 are just an assumption made by neorealists that should be ignored. We need to be careful and critical about Indonesia’s foreign policy that had been infiltrated by the neo-realism ideology such as forming closer ties and an alli-

T HE

techweekeurope.co.uk

ance with the United States. The public should be critical to prevent Indonesia’s foreign policy from deviating and to side only with one major power in Asia-Pacific, especially with the United States. The government must remain consistent in implementing the dynamic equilibrium policy, especially in the Asia-Pacific region. Such a stance will prevent any major war in Asia-Pacific

SP IRIT

regional level, for instance, there are ASEAN, ASEAN Regional Forum, ASEAN+1, ASEAN+3, and the European Union. In the multilateral level there are Asia-Europe Meeting (ASEM), Asia Pacific Forum, and the World Trade Organization (WTO) and others. These forums will offer more international communications rather than create suspicions among countries that would only result in an open conflict and military showdown (weapons) that would lead to a big war. The global politics is showing a transition from the power relations political community (hegemony) to cosmopolitan ethics (cooperative and opened dialog). All sorts of international policies will be discussed more often and then turned into blueprints (roadmaps). Therefore, the Indonesian people should support the cooperation optimism in the regional and multilateral levels to prevent any major war from breaking out. In the best interests of the country, the government needs to provide facilities so that social activities and the economy can run positively and constructively.

because the dynamic equilibrium principle offers a forum for egalitarian interaction between countries. Now regional and multilateral forums have been intensified and every country seemed to be more interdependent rather than forming dependency such as between underdeveloped-developing countries (weak) and developed (strong) countries. In the

The global politics is showing a transition from the power relations political community (hegemony) to cosmopolitan ethics (cooperative and opened dialog). All sorts of international policies will be discussed more often and then turned into blueprints (roadmaps). Therefore, the Indonesian people should support the cooperation optimism in the regional and multilateral levels to prevent any major war from breaking out

The writer is lecturer at University of Al Azhar Jakarta and Paramadina University

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October 2013 Vol. 2 No. 10

International presidenri.go.id/Laily

ABAC Urges APEC Leaders to Solidify Cooperation and Multilateral Trading System

Dihadiri para pemimpin APEC, Presiden SBY menyampaikan keterangan hasil-hasil KTT ke-21 APEC, sekaligus penutupan, di Hotel Sofitel, Nusa Dua, Bali, Selasa (8/10) siang.

APEC Leaders Agree on Bali Declaration for Economic Growth Indonesia has successfully held the Asia Pacific Economic Cooperation (APEC) in Bali, 7-8 October 2013. The APEC leaders’ have made the “Bali Declaration: Resilient Asia-Pacific, Engines of Global Growth”. To make people remember it more easily, this document is simply called “Bali Package”.

he Bali Package is the final document that culminates more than 180 meetings during Indonesia’s chairmanship in APEC. This package contains several documents, namely: a Declaration of up to 8 pages (26 points) and two attachments, namely “APEC Framework on Connectivity” and “Multi-Year Plan on Infrastructure Development and Investment.” Declaration of the Economic

Leaders contains records of successes that have been achieved since APEC Bogor 1994. It said that APEC economies have managed to eradicate hundreds of people in Asia-Pacific from the yoke of poverty and build an open, strong and innovative economy, which is now the driving force of growth. Everything has been accomplished through a series of policies formulated very carefully and responsibly. Given the success and development of the global economy, the APEC leaders are committed to avoiding protectionist attitudes and measures that distort trade. “We will continue our commitment to strengthen and deepen regional economic integration and eliminate barriers to trade and investment in the region,” the APEC leaders wrote. The declaration also specifies the steps to be performed, which are further divided into three pillars: Supporting Multilateral Trading System and Attaining the Bogor Goals, Promoting Connectivity, and Sustainable Growth with Equity. The main pillars of APEC confirm support for the efforts to establish a global trade regime under the WTO. Specifically for this support, the

leaders even issued a special document supporting the Multilateral Trading System and the 9th Ministerial Conference of the WTO. The leaders also reaffirmed its determination to achieve all Bogor Goals in 2020. In the second pillar, the leaders realize the importance of the flow of goods, services, capital and people efficiently in the APEC economies. To that end, there will be an increase in physical connectivity, institutional and societal (people to people contact). Comprehensive connectivity is expected to be achieved through “APEC Framework on Connectivity”, In relation to people-to-people contact, it targets student exchange among APEC countries as many as 1 million people per year by 2020. Physical connectivity will apply “Multi-Year Plan on Infrastructure Development and Investment”. The third pillar contains a series of strategies to achieve sustainable and equitable growth. In particular, this section highlights the importance of strengthening the role of women in economic activities, encouraging the involvement of SMEs, trade finance facilitation, encouraging

Indonesia, US to Develop Pertamina Downstream Development Program US Deputy Assistant Secretary of Commerce for Asia Holly Vineyard and Deputy Minister for International Cooperation of the Coordinating Ministry of Economic Affairs witnessed the signing of a cooperation agreement between Pertamina and Honeywell Universal Oil Product (UOP) LLC on a Feasibility Study on the Revamp of Pertamina Refinery Units on Monday, 6 October. This study is partially financed by a US one million dollar grant from the US Trade Development Agency. Deputy Minister for International Cooperation Dr. Rizal Lukman said the feasibility study was an example of the partnership welcomed by both governments. “Pertamina, our national oil company, is playing a critical role to support government policies and programs in energy business operations,” he said. Both governments, the Deputy Minister said, “recognized and were fully behind the facilitating role of the governments through the US-Indonesia Commercial Dialogue process in further promoting closer B2B collaboration between the private sectors of our two countries”.

The outcome from this study will be a blueprint to guide Pertamina towards its goal of building a world class downstream business and contribute to Pertamina’s aim to evolve into a world class integrated energy company to serve our national needs and the company’s expansion to global energy market”. Rizal pointed out that much attention has been given to Pertamina’s upstream activities, but it is also equally important that Pertamina has in place a program to optimize its resources in downstream refining activities to produce high quality and competitive goods and services. “The initiative such as revamping, upgrading and optimization of Pertamina’s existing refinery units is also one of the

company’s strategic tasks to address the nation’s energy needs”. According to the Deputy Minister, the feasibility study is timely and relevant. It will address, amongst others, environmentally friendly fuel with Euro 4 specification, increase productivity of added value products such as petrochemicals, increase net margin of all refinery units through bottom upgrading projects, and increase refinery units’ operational flexibility to process alternative sour crudes. “The outcome from this study will be a blueprint to guide Pertamina towards its goal of building a world class downstream business and contribute to Pertamina’s aim to evolve into a world class integrated energy company to serve our national needs and the company’s expansion to global energy market”. The cooperation on feasibility study was signed by President and CEO of PT Pertamina (Persero) Karen Agustiawan and President and CEO of UOP LLC Rajeev Gautam. Representatives from the US and the Indonesian Government, US Embassy officers in Jakarta and Senior Management and officials from Pertamina and Honeywell UOP LLC attended the Signing Ceremony.

critical role of farmers and fishermen, as well as strengthening cooperation across law enforcement apparatus and education areas. In this regard, the APEC leaders have agreed to the establishment of Anti-Corruption Authorities and Law Enforcement Agencies (ACT-NET), which was

proposed by Indonesia. At the closing, the APEC leaders hope that future developments will increase the synergy between government and the private sector (ABAC). It is also believed that APEC will continue to lead the world economic recovery.

APEC Business Advisory Council (ABAC) delivered recommendations to the APEC Leaders, one of which is to accelerate liberalization of trade and investment. This recommendation also encompasses ABAC’s hopes of a more active role played by APEC to ensure the success of the WTO MC9, which will be held in December 2013. “The ABAC members were clear in their message that APEC cooperate more closely so that the WTO MC9 in Bali can deliver a Trade Facilitation Agreement that can boost trade in the APEC region and the world as well as making trade be more inexpensive, quicker, and more convenient,” said Trade Minister Gita Wirjawan. Besides expressing support for the success of the WTO MC9, ABAC also delivered the advancements of the cooperation proposed and implemented under the theme Toward Resilience and Growth: Reshaping Priorities for Global Economy. The five other recommendations that were also delivered by ABAC to the APEC Leaders were (1) promoting regulation coherence; (2) strengthening supply chain connectivity; (3) strengthening food and energy security; (4) promoting investment in infrastructure; (5) accelerating Small, Medium, and Micro Enterprise (SMME) building and involvement of women in the economy. During the retreat, APEC Economic Leaders discussed the relevance of APEC in the midst of the current global economic sit-

Trade Minister Gita Wirjawan

The ABAC members were clear in their message that APEC cooperate more closely so that the WTO MC9 in Bali can deliver a Trade Facilitation Agreement that can boost trade in the APEC region and the world as well as making trade be more inexpensive, quicker, and more convenient.” uation as well as APEC’s support of a multilateral trading system. The Leaders agree that APEC Cooperation needs to be expanded and deepened to have more resilience in facing an economic crisis. Sustainable growth and connectivity cooperation is mentioned by a number of leaders to be the key to APEC’s success in the future. Moreover, the leaders of APEC also welcome advancements in the cooperative agenda such as in services, trade funding, global competitiveness of SMMEs, capacity of farmers in realizing global food security, financial inclusion, renewable energy, connectivity, disaster response facilitation, cooperation in education, and travel facilitation initiative.

October 2013 Vol. 2 No. 10

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ASEAN Review

Myanmar Gets Full Support to Chair ASEAN M

Myanmar took over the chairmanship of the Association of south-east Asian Nations (ASEAN) on Thursday, October 10, despite concerns over sectarian violence and its human rights record. It is the first time since Myanmar became a member in 1997.

yanmar President Thein Sein said the chairmanship of the 10country bloc was an honour for his country, and is ready to host meetings next year. “At a time when our citizens and the entire world are watching closely … it is extremely crucial for us to show unity in fulfilling our common objectives,” he said. “Our unity and solidarity have endured the test of time, and we must continue to maintain and preserve this noble tradition.” Myanmar opted to forego the ASEAN chairmanship in 2006, when its then-ruling military junta was under pressure to carry out democratic reforms. Only when Myanmar began a series of political and economic reforms in 2011 did ASEAN leaders decide to allow Myanmar a chance to chair the association in 2014. The theme chosen for ASEAN next year is “Moving forward in unity towards a peaceful and prosperous community”, and Myanmar aims to “add value to promote a people-centred ASEAN”, said President Thein Sein. ASEAN Secretary-General Le Luong Minh as quoted from Xinhua said that the members had not press Myanmar on sectarian clashes between Buddhists and Muslims that are estimated to have killed hundreds and displaced more than 150,000 people since violence erupted last year. However, Minh was ada-

REUTERS

Burma’s President Thein Sein (L), shakes hands with Brunei’s Sultan Hassanal Bolkiah after receiving the ASEAN Gavel during the Closing Ceremony of the 23rd ASEAN Summit, Bandar Seri Begawan, Oct. 10, 2013.

mant that Myanmar’s reformist government headed by President U Thein Sein would give able leadership to the regional bloc when it takes over the ASEAN chairmanship. Myanmar will officially begin its duties on Jan. 1, 2014. “Myanmar has been receiving

very strong support from the member states and partners and we are confident they will be able to undertake their chairmanship effectively,” Le said. Officials of member states have also been encouraging engagement rather than sidelining the country, which has partial-

ly opened up its economy and reformed its politics. Meanwhile, Foreign Minister Marty Natalegawa said ASEAN expects Myanmar to be “consistent to the ideals that ASEAN aspires to in the areas of good governance and human rights” during its chairmanship. “It

can become a huge momentum builder for the continued, constant reform in Myanmar,” he continued. Philippine presidential spokesman Ramon Carandang acknowledged that Myanmar still has a lot of reforms to implement, but added, “We also need to recognize the dramatic changes that have taken place in that country.” “The best thing that the international community can do at this point is to encourage them to continue to move in this direction, so we support Myanmar taking over as chair,” he said. UN Secretary General Ban Kimoon welcomed Myanmar’s new role, but said he was concerned about ongoing communal violence. “I urge the government and all communities to address all contributing factors. The reform process in Myanmar can only succeed fully if all groups in the country feel safe,” he said. Meanwhile Phil Robertson, deputy Asia director for the New York-based Human Rights Watch, said, “for many years, people have resisted allowing Burma to chair ASEAN simply because there was a feeling that the human rights record of Burma was so bad.” “Now that the decision has been taken to move to allow for Burma to become the ASEAN chair, those human rights issues are still there,” he said, referring to Myanmar by its former name. “These are things that member states should be taking up with Burma.”

Myanmar opted to forego the ASEAN chairmanship in 2006, when its then-ruling military junta was under pressure to carry out democratic reforms. Only when Myanmar began a series of political and economic reforms in 2011 did ASEAN leaders decide to allow Myanmar a chance to chair the association in 2014.

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October 2013 Vol. 2 No. 10

Law & Regulation

Exceptions in Article 1266 of the Civil Code in Agreements www.paralegalintoronto.ca

Based on a legal perspective, exceptions under Article 1266 of KUHPdt is legal because the article is stated in the third book of KUHPdt in which the book’s nature was only to regulate and not to enforce and thus both parties can resort to it.

By Paulus Khierawan

The main reason for including such an article is to avoid going to court when a revocation of contract occurred as a result of a failure to meet obligations. This is because many are aware that a legal process in court is very complicated.

n agreement is a legal action often committed by individuals. However, many people don’t realize that many of their daily activities are a form of agreements, such as when parking a vehicle in a mall, purchasing goods or food and other things. Small-scale agreements can be made verbally. But that’s not the case with big-scale agreements where such agreements are normally made in writing in a letter of agreement. An agreement is stipulated under Civil Code (KUPdt), Article 1313 in which it is stated that “an agreement is an action in which one person or more is bound to one person or more than one person”. Such binding is stipulated in a contract which would later bind the parties who signed the contract. The contract would consist of clauses that should first be studied thoroughly before it is signed. Generally, clauses in the contract can be divided into special and general clauses. Special clauses can be translated as clauses made especially for the contract, for instance, clauses on payment method, contract value, rights and obligations of both parties, and others. The special clauses may be different compared to those in other contracts.

Aside from special clauses, there are also general clauses or clauses which are common and the same in every contract in terms of contents, such as related to a force majeure, and clauses on exceptions under articles 1266 & 1267 of KUHPdt. So what does Article 1266 of KUHPdt really contain? Article 1266 of KUHPdt: “The conditions that can revoke an agreement are considered always included in a contract to anticipate one party from failing to meet its obligations. In such case, the agreement will still remain legal and therefore a re-

quest to revoke it should be filed at the court. The request should also be sent even though the terms that revoked the agreement after one party failed to meet its obligations were included in the contract. If the terms on the revocation are not included, judges, upon the request of the defendant, can offer a deadline to enable the defendant to meet its obligations, but the deadline should not be longer than one month.” Based on a legal perspective, exceptions under Article 1266 of KUHPdt is legal because the ar-

ticle is stated in the third book of KUHPdt in which the book’s nature was only to regulate and not to enforce and thus both parties can resort to it. Many parties include the article on exceptions in their contracts. The main reason for including such an article is to avoid going to court when a revocation of contract occurred as a result of a failure to meet obligations. This is because many are aware that a legal process in court is very complicated. This is the main reason why this article has been made an exception. One can imagine what would happen if one sought to

revoke an agreement in the court under the current legal system in Indonesia. So what happens if the consequences of the contract disadvantaged a third party? Will the third party also loses its rights? The revocation of an agreement is not the same as “bringing the situation back to the initial condition”, it only revokes an agreement between the parties that were bound by the agreement. However the parties should still be responsible for the interests of the third party which emerged as the result of the agreement.

October 2013 Vol. 2 No. 10

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Cikarang Dry Port

CDP Means Efficiency in Exports and Imports The process of documents related to port, customs and quarantine can be done in CDP through the Indonesia National Single Window (INSW). CDP is connected systematically to Priok port operators. With integrated facilities and services as well as better planning, CDP can improve the supply chain in Indonesia.

ocated in the Jababeka Industrial Estate, the Cikarang Dry Port (CDP) stands amidst 2,500 manufacturing firms which are the backbone of the national economy. The CDP is connected to other ports in the world, making it both a Port of Origin and a Destination Port. It is also connected with a highway and a railway. CDP has become a worldwide name as shipping companies have made it an end port. CDP’s strategic function as an extension of Jakarta’s Tanjung Priok Port is the implementation of Presidential Decree No. 32/2011 on MP3EI, Perpes No. 26/2012 on the Blueprint of the National Logistics System 20122015 that supports Presidential Decree No. 54/2002 concerning the coordination team on the Acceleration of Flow in Export and Import as last amended by the Presidential Decree No. 22/2007. According to Benny Woenardi, Managing Director PT. Cikarang Inland Port, Jababeka was issued a permit to build CDP in 2009 after seeking it for nine years. It officially operated since August 18, 2010, to serve export and import activities. To make CDP a success, said

Benny, a special railway is connected directly from Tanjung Priok. However, currently there is no direct railway to the port, thus it is more effective to use vehicles. “Using train means we do not have to use trucks to reach Priok,” he said. Activities in CDP have showed marked improvement as reflected by the increase in export and import service users, namely empty container management companies as well as port services, customs, and quarantine activities in the CDP area. Presently, 15 shipping companies have chosen the services of CDP, they are Maersk Line, MCC Transport, Safmarine, CMA CGM, CNC, ANL, Delmas, APL, MOL (Mitsui O.S.K Line), MSC, Hanjin, NYK, SITC, Gold Star and Sinokor. Some other shipping companies are in the process of joining them. Through shipping service users can order directly the delivery of goods from and to CDP. For example, domestic importers may import goods from China directly to CDP by using Multimodal Bill of Lading. Likewise, exports can be done directly from CDP to export destinations. The numbers of exporters and importers using CDP is increasing, among others PT Yamaha Music Manufacturing Asia, PT

Benny Woenardi, Managing Director PT. Cikarang Inland Port

Presently, 15 shipping companies have chosen the services of CDP, they are Maersk Line, MCC Transport, Safmarine, CMA CGM, CNC, ANL, Delmas, APL, MOL (Mitsui O.S.K Line), MSC, Hanjin, NYK, SITC, Gold Star and Sinokor. Some other shipping companies are in the process of joining them.

South Pacific Viscose, PT Toshiba Consumer Products Indonesia, PT Unilever Indonesia Tbk., PT Indonesian Kraft, Procter & Gamble, Sumitomo Indonesia, Kobexindo, PT Cadbury Indonesia, PT Wisesa Fajar Surya Tbk., PT Kimberly-Clark Indonesia, PT Tekpak Indonesia, PT Multistrada Arah Sarana Tbk. and others. Some of these companies have facilities like Jalur Prioritas (priority lane), Jalur Hijau (green line) and Bonded Zone, or those who do not have special facilities to conduct activities in CDP as a public port. In addition to utilizing terminal facilities for dry cargo, refrigerated container facilities and examination of the red line are ready to be served in CDP terminal with transparent tariffs. The certainty of delivery, security and the ease of services are advantages for users, which do not have to use services at Priok, where the costs are higher. The process of documents related to port, customs and quarantine can be done in CDP through the Indonesia National Single Window (INSW). CDP is connected systematically to Priok port operators. With integrated facilities and services as well as better planning, CDP can improve the supply chain in Indonesia.

The certainty of delivery, security and the ease of services are advantages for users, which do not have to use services at Priok, where the costs are higher.

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October 2013 Vol. 2 No. 10

Property

Investing in Apartments in Jakarta Modern living is often described as practical, simple and functional. Such situations are part of the factors considered by consumers in choosing an apartment as an alternative investment in a place to live in the heart of the city.

By Andri Marsetianto

n apartment would not only bring consumers close to their center of activities but also to the capital’s business centers. Apartments can also fill the gap in housing supplies which is still 13.6 million short. This condition can serve as an opportunity for developers to develop vertical residences equipped with facilities to support consumers’ main activities, such as with the presence of a shopping mall and office in the apartment complex. There are also other facilities such as hospital and hotel which could become factors to support the development of an apartment in the Greater Jakarta (Jabodetabek). Low mortgage rates (KPA) for apartment ownership is also deemed as a contributing factor for the high apartment demand. Consumers could expect capital gain from selling an apartment if they bought a unit during the initial tower launch or simply serve as passive income if it was rented because the return rate is higher compared to investing on financial instruments such as time deposits. A survey conducted by BI in the fourth quarter of 2012 showed that demand for apartments, both for sale and rent, in Jabodetabek are still quite high. Between 2010 and 2012, there

A survey conducted by BI in the fourth quarter of 2012 showed that demand for apartments, both for sale and rent, in Jabodetabek are still quite high. Between 2010 and 2012, there were an oversupply of apartments for rent of 227 units and 138 units for sale. However, oversupply of apartments for sale in 2012 reached 810 units.

were an oversupply of apartments for rent of 227 units and 138 units for sale. However, oversupply of apartments for sale in 2012 reached 810 units. The supply of apartments for rent in the fourth quarter of 2012 increased by 1.15% compared to the same quarter in the previous year. In 2013, supplies are expected to increase by 1,600 units, which are expected from the development of nine apartment projects,

in which six of them are not located in CBD areas. In the fourth quarter of 2012, the vacancy rate of rented apartments increased to 78.13% from 77.90%, thanks to a series of MICE (meetings, incentives, conferences and exhibitions) activities during Christmas and the New Year. In terms of the types of renters, the longterm renters are mostly expatriates from the United States and Europe, while renters from Ja-

pan, South Korea and Malaysia usually rent apartments for short-term businesses. This year there are 95 apartment projects that will be up for sale, in which 86 are not located in CBD area. The additional supply in non-CBD areas is triggered by the development of offices in those areas and they are dominated by apartment projects for middle class. The addi-

tional supply had caused the number of units sold to decline to 94.71% in the fourth quarter of 2012, while sale price increased by 45.37% compared to the previous year. The studio type, which is ±26 m2, and the two-bedroom (±36m2) apartment are in high demand, especially from newly-weds. The average price for apartments in Jakarta, according to Colliers International up until September 2012, reached Rp19.12 million per m2. The most expensive apartments are mostly located in the Central Business District (CBD) area, at Rp28.8 million per m2. This is because the golden triangle area is the best in terms of accessibility and it’s located in Jakarta’s business hub. The average price for apartments in South Jakarta up to the third quarter of 2012 was Rp19.43 million per m2, followed by apartments in non-CBD areas which are the cheapest at Rp15.23 million per m2. There are a variety of choices of apartments to choose from in Jabodetabek, from middle-low to middle-high, depending on the location and the facilities offered by the developers. Consumers should be able to choose the right apartment for investment and as well as an alternative place to live based on accessibility and facilities they provided to support activities in the heart of the Jabodetabek areas.

Low mortgage rates (KPA) for apartment ownership is also deemed as a contributing factor for the high apartment demand. Consumers could expect capital gain from selling an apartment if they bought a unit during the initial tower launch or simply serve as passive income if it was rented because the return rate is higher compared to investing on financial instruments such as time deposits.

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BUSINESS

SECTION B October 2013 Vol. 2 No. 10 www.thepresidentpost.com

Koba Tin Contract Terminated

Indonesia, South Korea Hold Business Meeting ANTARA

The meeting threw light on progress reports on the realization of cooperation in exclusive economic region, shipbuilding industry, use of compressed natural gas, and development of renewable energy.

he Indonesian delegation, led by Coordinating Minister for Economic Affairs Hatta Rajasa, held the third meeting of the joint committee on economic cooperation with its South Korean counterpart in Seoul early this week. The meeting was in line with the joint declaration signed by the heads of state of the two countries in 2005 on strategic partnership to promote friendship and cooperation in the 21st century, according to the Coordinating Ministry for Economic Affairs in a press statement released on Wednesday. At the meeting, which coincided with the 40th anniversary of the diplomatic ties between the two countries, the South Korean delegation was led by Trade, Industry and Energy Minister Yoon Sang-jick. The meeting threw light on progress reports on the realiza-

tion of cooperation in exclusive economic region, shipbuilding industry, use of compressed natural gas, and development of renewable energy. Both sides also looked at progress reports on infrastructure development, Ciliwung river restoration project, rice farming mechanism, and development of green cars. Hatta said industrial cooperation between the two countries should not be limited to steel, tire, shipbuilding and aviation industries, and information and communication technology. “I also hope that South Korea will fulfill its promise to transfer technology and allow the Indonesian Investment Coordinating Board (BKPM) to open its representative office in Seoul in an attempt to increase South Korean investments in Indonesia,” he added. He also expressed hope that there would be wider cooperation in infrastructure develop-

Indonesia Minister for Economic Affairs Hatta Rajasa and South Korea Trade, Industry and Energy Minister Yoon Sang-jick.

ment to support the implementation of the Master Plan for the Acceleration and Expansion of the Indonesian Economic Development (MP3EI) programs. “Through the MP3EI, Indonesia has the potential to cooperate (with other countries) in developing its infrastructure in six economic corridors,” he said.

Creating Abundance Economy Through Business Re-Education Creating a world of abundance through business re-education is the vision of the multi-billionaire and world figure Bradley J. Sugars. The Australian, the founder of ActionCOACH as well as the first person who initiated the idea of business coaching, possesses a brilliant perspective on how to build a world of abundance through business re-education.

ndonesia is now going through a time of ups and downs in its economy. Starting from the fall of the rupiah to high unemployment rate, our country needs to be repaired. Creating a world of abundance through business reeducation is the vision of the multi-billionaire and world figure Bradley J. Sugars. The Australian, the founder of ActionCOACH as well as the first person who initiated the idea of business coaching, possesses a brilliant perspective on how to build a world of abundance through business re-education. According to Sugars, the progress of a country is determined by its level of prosperity and its economic stability. So, many countries are great because their economies are very good and stable. But, of course, behind the success of a country is the success of its entrepreneurs. Through ActionCOACH, Sugars has designed a mentoring business model (business coaching) in the form of a franchise. The model caters to business people who wish to have a running and profitable autopilot business system and yet leave them enough time for their families. Sugars offers a business coaching license through a franchisor in each country. In Indonesia, there is Herman Susanto, Indonesia ActionCOACH Master license. ActionCOACH can now be found in 49 countries and has thousands offices throughout the world.

minds to be champions, trained and molded to be tough in the field.

Bradley J Sugars, pendiri ActionCOACH.

Through ActionCOACH, Sugars has designed a mentoring business model (business coaching) in the form of a franchise. The model caters to business people who wish to have a running and profitable autopilot business system and yet leave them enough time for their families. The uniqueness of ActionCOACH is that it is a proven system that helps a business owner to have an autopilot system. This business system is packaged in the form of a franchise through re-education. The coaching program allows businessmen to receive a set of knowledge and the necessary skills to build an autopilot business. It works like athletes with coaches, as athletes set their

On the other hand, the coach who gets the business coach certificate will continue to receive ongoing trainings, a complete business system and support from the franchisor in each country. Sugars has managed to create new billionaires. Through his personal experience as a successful businessman who started his business since he was 14, he has developed an autopilot business system that has proven to be successful. His experiences in decades of building successful businesses are conceptualized in a ready-made business system. Thanks to his mindset, knowledge and competency as a business owner, he has established ActionCOACH. ActionCOACH is running very well in 49 major countries, and the success rate of business mentoring program is even more convincing. Sugars’ and Herman’s vision is to create a world in abundance through business re-education. So the task carried by ActionCOACH Indonesia is to create one million new billionaires by 2020. For business owners who wish to enjoy coaching assistance, just call the nearest office of ActionCOACH. ActionCOACH will set up a schedule for a business evaluation and business coach licensed by ActionCOACH who will make a coaching program for business owners.

Existing bilateral relations will continue in the long run, and they serve as a key to achieving mutually beneficial cooperation between the two countries.”

He also noted that both the nations have made significant progress in forestry, agricultural and fisheries cooperation to enhance food security. “Existing bilateral relations will continue in the long run, and they serve as a key to achieving mutually beneficial cooperation between the two countries,” he said.

The government has announced its decision to terminate the working contract of PT Koba Tin, effective as of September 18, 2013 because it has been suffering from business losses. Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo said here on Tuesday that the government will temporarily hand over the management of the mining area being exploited by Koba Tin to stateowned company PT Timah Tbk. “This is only temporary and covers only maintenance and not production,” he stated. He noted that the government intends to finalize all necessary work and arrangements in the transitional period ahead of completely transferring the contract to another company. One option on the table is to hand the mining contract over to a state-owned company, such as PT Timah, he suggested. He pointed out that PT Koba Tin`s contract had been terminated by an evaluation team of experts and industry players after considering the advice of the Bangka-Belitung governor. Koba Tin, which is a joint venture between Malaysia Smelting Corporation Berhad, a publicly listed company in Malaysia, holding 75 percent of Koba Tin`s shares, and PT Timah Tbk, holding 25 percent of the shares, lost $40.9 million in 2012.

Susilo Siswoutomo Susilo said he would involve the military and the police in securing the mining area following the termination of the company`s contract. He asked PT Koba Tin to seek arbitration to settle the matter if it could not accept the termination notice. “(They can) go ahead. It is their right,” he stated. Based on Law No. 4 of 2009 on mineral and coal mining, a company holding a working contract that has expired is obliged to meet its obligations under the law, and these obligations must be approved by the minister of energy and mineral resources. The obligations include handling the reclamation of land and making payments to the workers. The contracted company is also required to submit all its data to the minister of energy and mineral resources. Expired contracts, meanwhile, must be handed over to the minister of energy and mineral resources, and these will later be offered to business entities such as cooperatives or individuals in accordance with certain systems established by the law. Koba Tin`s contract was first signed on October 16, 1971, and was later extended several times until March 31, 2013.

October 2013 Vol. 2 No. 10

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Business together in the construction of the toll roads from Jakarta to Surabaya,” Dahlan said. He added that the ability of state companies to build the 12.7-km toll road in Bali could serve as a momentum for them to build similar toll roads on Java island.

BUSINESS BRIEFS 19 State Firms Told to Build Toll Roads Minister for State-owned Enterprises (SOE) Dahlan Iskan has requested 19 state-owned companies to cooperate in the construction of toll roads that will stretch along the coastal areas from Jakarta to East Java. “For the first stage, we urge state companies involved to conduct feasibility studies to be completed in six months,” said the Dahlan Iskan minister after the signing of a memorandum of understanding on the preparations for toll road construction projects on Wednesday. The 19 state-owned companies are PT Jasa Marga, PT Adhi Karya, PT Waskita Karya, PT Wijaya Karya, PT Hutama Karya, PT Pembangunan Perumahan (PP), PT Brantas Abipraya, PT Nindya Karya, PT Istaka Karya, PT Pelindo II, PT Pelindo III, PT Semen Indonesia, PT Krakatau Steel, PT Bank Mandiri, PT Bank BNI, PT Bank BRI, PT Bank BTN, PT Jamsostek, and PT Taspen. The minister said the cost and technical details of the construction of the toll roads cannot be revealed to the public yet because the project is still under feasibility study planning. “It is still in the form of a memorandum of understanding where the state companies are expected to work

Businessmen Keen on Investing in Hotels Indonesia is ranked third in Asia in terms of hotel development and investment, said Minister for Tourism and Creative Economy Mari Elka Pangestu. “This shows that Indonesia is an attractive destination for hotel investment,” added the minister on Friday. Indonesia is now one of the favorite destinations for hotel and restaurant investments, she said. Data published by the Mari Elka Pangestu ministry shows that domestic and foreign investments in the country`s hotel and restaurant sector more than doubled to $869.8 million last year compared to two years back. “The figure rose significantly by 210 percent from 2011,” she said. The minister added that the management of hotels in the country must be environmentally friendly. “Ideally, it (the environment-oriented principle) must be applied from the construction to the operation stage,” she said. Any investor planning to build a hotel in Indonesia must apply the green hotel concept, which calls for optimum usage of resources (energy, water and materials) and the management of hotel rooms, which meets conve-

nience and health requirements, she said. “There must be convenience and health guarantee for employees and guests, including tourists,” she pointed out.

Foreign Investor to Build Sugar Factory in Central Aceh A foreign investor is building a sugarcane processing mill which will have an annual production capacity of 4,000 tons of refined sugar per day. PT Kamaddhenu Ventures Indonesia will build the factory in the regency of Central Aceh, Mustafa Kamal, the spokesman of the Central Aceh district administration said. The district administration welcomes the construction of a sugar mill in the regency of Central Aceh, Mustafa said in Takengon on Monday. Kamaddhenu Ventures official Davarakonda Venkataratnam, a Vietnamese of Indian origin, said first the company would build a fence around the 75 hectare plot of land where the factory will be built in the sub-district of Ketol. The process of building the project will take around 14 months by phases that would include office buildings, dormitory, supporting facilities and the factory, Venkataratnam said. He said the company would need 12 hectares of farmland for sugarcane plantation and the land has been available in Central Aceh. The Central Aceh regency wants to make sugar its second main commodity after arabica coffee. Central Aceh has 40,000 hectares of arabica coffee plantations. Currently Central Asia has 7,940 hectares of sugar plantations producing 48,890 tons of sugarcane per year.

airinsight.com

Garuda Raises Ticket Prices by 5 Percent The appreciation of the US dollar affects the company`s cost components such as fuel purchase, aircraft rent and maintenance cost which are paid in US dollar.

tate-owned airlines Garuda Indonesia has raised its ticket price by an average of five percent in response to the rupiah depreciation which has reached a range of Rp11,700 per US dollar, its president director said. “We have raised the price of Garuda`s flight tickets by an average of five percent since last August 1, in response to the depreciation of the rupiah value,” Garuda President Director Emirsyah Satar said here on Tuesday. He said that all companies, including Garuda, must pay attention to the fall of the rupiah and take anticipatory steps to avoid its impacts on their operations. “We will continue to monitor the dollar`s movements from time to time so that we could take strategic steps,” he said. He said that as far as the rupiah`s value against the Greenback was stable at a range of between Rp11,000 and Rp11,500, it was expected to not affect the company`s performance too much. “It would matter if the rupiah`s fluctuation occurs in a higher range,” he added. According to Emirsyah, the appreciation of the US dollar affects the company`s cost components such as fuel purchase, aircraft rent and maintenance cost which are paid in US dollar.

Therefore, besides raising flight ticket prices, Garuda also takes various efficiency steps, including increasing the frequency of plane usage and reduce operational costs in offices. “With these steps, Garuda continues to carry out its operation and business expansion based on its corporate business plans,” he said.

Garuda orders ATR72-600 planes to serve medium cities

Garuda Indonesia has ordered 35 Avions de Transport Regional (ATR) 72-600 planes to serve medium cities. “Garuda Indonesia has ordered ATR72-600 planes to develop and strengthen the routes in the domestic market,” said Emirsyah at the signing of a cooperation agreement between Garuda, ATR, and Nordic Aviation Capital (NAC) on Tuesday. He added that the ATR planes will be operational in a number of secondary cities to support the Master Plan for the Acceleration and Extension of Indonesia`s Economic Development (MP3EI). The development of the routes, he said, would increase national connectivity, which is in line with MP3EI. “The procurement of ATR72600 planes is in line with the government`s plan to develop air transportation infrastructure, following the inauguration of new airports in Indonesia in the next two years,” he said. He said a number of new airports will be opened, especially in new economic growth regions and tourist destinations in remote regions. As per the cooperation agreement between Garuda, ATR, and NAC, Garuda will procure 35 ATR72-600 planes to serve short-haul flights.

CEO of ATR Filipo Begnato, meanwhile, said the first plane would be delivered in November 2013, while the rest will be delivered in stages until 2017. “The agreement is part of the ATR72-600 expansion plan in Southeast Asia, where the fleet has become the new standard for air connectivity development and is also part of our commitment to support the development of aviation industry in this region,” he said. Chairman of NAC Marin Moller, meanwhile, said the cooperation is strong, considering the fast development of aviation industry in Southeast Asia. The chairman added that ATR72600 is the right choice for operations in small airports and isolated locations. Deputy Transportation Minister Bambang Susantono said the cooperation was good because it would improve connectivity in Indonesia. “The Ministry of Transportation is currently striving to develop airports in secondary cities,” he said. Garuda would operate the ATR72-600, with 70-seat capacity, to among others, Labuan Bajo, Tambolaka and Ende in East Nusa Tenggara, Bima in West Nusa Tenggara, Banyuwangi and Jember in East Java, Bau-bau and Wakatobi in Southeast Sulawesi, Luwuk in Central Sulawesi, Mamuju in West Sulawesi, Poso in Central Sulawesi, Kaimana in Papua, and Tual/ Langgur in Maluku. This year, Garuda Indonesia and Citilink plan to procure 24 new planes to strengthen and develop their national and international flight networks. As of the first semester of this year, Garuda Indonesia Group has operated 126 planes.

Companies Eye 18 Oil, Gas Blocks Put on Auction The first round of auctions for 18 oil and gas blocks located mostly in the eastern part of the country has been initiated by the Indonesian government. Sixteen of the blocks are being offered through direct bids and two through regular tenders, according to a press statement released by the Directorate General of Oil and Gas at the Energy and Mineral Resources Ministry on Monday. The blocks being offered through direct bids include the Palmerah Baru onshore block in South Sumatra and Jambi, the Sakti offshore block in Central Java and East Java, the North Madura II offshore

block, the North East Madura VI offshore block, the Anugerah offshore block in East Java, the East Bontang onshore and offshore blocks in East Kalimantan, and the North Adang offshore block in Makassar Strait. Other blocks being offered through direct bids are the South Sulawesi I offshore block in West Sulawesi and South Sulawesi, the South Sulawesi II offshore block in South Sulawesi, the Southeast Sulawesi I offshore block in Southeast Sulawesi and Central Sulawesi, and the Southeast Sulawesi II offshore block in Southeast Sulawesi. The West Abadi offshore block, Yamdena offshore block, South Aru offshore block in Maluku,

Bird`s Head offshore block, and Merauke onshore block in Papua are also among those offered through direct bids. The two blocks offered via regular tender are the East Seringapatam offshore block in East Nusa Tenggara and the East Abadi offshore blocks in Maluku. Bid documents for the regular tender are open to bidders from Sept. 16, 2013, to Jan. 27, 2014, and participation documents must be submitted before Jan. 27, 2014. Bidders can claim documents in the direct tender from Sept. 16 to Oct. 30 this year, and participation documents must be submitted before Oct. 31, 2013.

Garuda Indonesia has ordered 35 Avions de Transport Regional (ATR) 72-600 planes to serve medium cities, among others, Labuan Bajo, Tambolaka and Ende in East Nusa Tenggara, Bima in West Nusa Tenggara, Banyuwangi and Jember in East Java, Bau-bau and Wakatobi in Southeast Sulawesi, Luwuk in Central Sulawesi, Mamuju in West Sulawesi, Poso in Central Sulawesi, Kaimana in Papua, and Tual/Langgur in Maluku.

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October 2013 Vol. 2 No. 10

Investment

Looking into QIV 2013 Research on the history of the performance of the composite index (IHSG) found an interesting phenomenon: there had been a window dressing phenomenon over the past decade between 2002 and 2012. Window dressing is normally translated in the bourse as a condition in which the IHSG would tend to make some gains ahead of the end of the year.

Dok/JIBI/Bisnis

By Wawan Hendrayana

To benefit from window dressing, investors must choose mutual funds with stock portfolios that move the index or are index movers. They are usually the blue chips or companies with big capitalization and listed under LQ-45. Although the IHSG would experience window dressing, this doesnâ&#x20AC;&#x2122;t mean that it will happen in every stock.

indow dressing is usually driven by several factors, such as speculations that the performances of listed companies were better at the end of the year compared to the previous year, positive economic data at the end of the year, and the anomaly pattern of the stock market which repeats historically. Aside from those factors, window dressing is also prompted by the efforts made by listed companies and investment managers to improve the performances in the whole year. The self-fulfilling prophecy factor also increased the chance for window dressing at the end of the year. By taking advantage of such a phenomenon, investors can make short-term investment profits because window dressing usually occurred in December. In other words, if investors invest at the end of September and sold the shares at the end of December, they are likely to make profits. The observation period should be conducted at the end of October and then have the shares released at the end of December. The application of two periods is intended to see whether it was possible to increase investorsâ&#x20AC;&#x2122; potential returns from the investments they made. The following is the result of the research (see Table). Data from the past decade showed that the fourth quarter or from October until December was the best period for

the IHSG to book profits even though in that period the IHSG was often hit by volatility such as bullishness in 2004, 2006 and 2007 and bearishness in 2008. Shares with the biggest potential to make gains based on probability were from the infrastructure and finance sectors. This is because many infrastructure programs had to be completed by the end of the year.

Average Performance 2002- 2012 Stock Sector

QIII

QIV

Average (%)

Rise Opportunity (%)

Average (%)

Rise Opportunity (%)

IHSG

7.27

7.09

Infrastructure

8.46

8.69

Finance

11.12

5.86

Multifarious Industry

11.35

6.17

Basic Industry

8.88

10.93

Consumption

5.87

4.50

Trade

5.60

4.13

Agriculture

6.29

10.23

Property

11.39

4.29

Mining

7.62

16.26

mentioned above or through mutual funds. To benefit from window dressing, investors must choose mutual funds with stock portfolios that move the index or are index movers. They are usually the blue chips or companies with big capitalization and listed under LQ-45. Although the IHSG would experience window dressing, this doesnâ&#x20AC;&#x2122;t mean that it will happen in every stock. Choosing the wrong stock portfolio could cause losses. Other criteria include the performance of the shares in the period mentioned above on whether they always booked profits and whether the profits were bigger than the profits generated by the IHSG itself. Investors must also keep in mind the assumption that previous performances may not happen again in the future. Therefore, investors who wish to speculate are recommended to use only a small amount of their investment funds. Make sure that the funds are idle funds that would not disrupt your household needs.

In terms of profits, returns in each sector differ but the basic industrial sector is the one with the highest return potential. Shares that fall under this sector are cement and animal feed. The multi industry sector, which is spearheaded by automotive, also offers high return potential because it is needed to support the low-cost green vehicles offered to the market as of this October. So, if you believe that the window dressing phenomena would still happen in 2013 and the return assumptions explained above are attractive enough for you, investors who wish to gain shortâ&#x20AC;&#x201D;term returns should try their luck through the stocks

to ok st to Bo ugu p u ( 9 A e ,( v Sa MK

Network with international investors at Indonesia Investment Summit in Hong Kong

21-23 October 2013, Conrad Hong Kong

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March 2013 Vol.2 No. 3

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Automotive

The New BMW Z4: A Classic Touch of High Technology BMW New Z4 is equipped with BMW TwinPower Turbo technology, ideally balancing fuel consumption across the entire output range along with sheer driving pleasure. The BMW Z4 comes in two different variants, namely sDrive20i and sDrive35i.

he BMW Group Indonesia launched the new BMW Z4 at the Indonesia International Motor Show (IIMS) 2013. BMW New Z4 is equipped with BMW TwinPower Turbo technology, ideally balancing fuel consumption across the entire output range along with sheer driving pleasure. Moreover, this sports vehicle comes with a retractable hardtop that can be opened with a single touch of a button. This can even be done while the car is still in motion, so long as it’s driven under 40 km/hour. The retracting process takes 19 seconds and is done completely au-

tomatic. The BMW Z4 comes in two different variants, namely sDrive20i and sDrive35i. The first comes with a pricetag of Rp 929 million, while the latter model can be taken home by spending Rp 1,4 billion. These prices are excluding taxes, in other words off the road. This car variant also features a low, frameless side window and BMW Hofmeister kink, which has become a trademark of BMW at the end of the C-pillar. Right behind the front wheels the designers of this car strategically positioned the Air Breathers. These are designed to reduce drag in the fender ar-

eas. With these air breathers, the drag coefficient is reduced to merely 0.28. Cars with a drag coefficient of below 0.30 can be considered efficient. The BMW Z4 accelerates in 5.1 seconds and consumes 13,9 km of fuel per liter. BMW Indonesia has set the price of this car at Rp 998 million off the road. In the interior evaluation, the company deemed the Z4’s standard front seats adequate in a straight line. The view of the road ahead is complemented by the Z4’s classic long nose, which is fully visible from the driver’s seat. You’re really almost sitting on the rear axle in this car, like an old gog-

gle-wearing racer from the 1930s. It’s one way in which the Z4 and Boxster could hardly be more different, as the mid-engined Porsche situates the driver practically in between the axles. The Z4’s gauges have unusual stylized circular hoods, but they’re otherwise in the traditional BMW mold, with simple white numerals that turn orange at night. Although the interior materials aren’t as nice as the ones in some other BMW products, they’re still identifiably premium. We appreciate that the iDrive infotainment system remains optional, as not everyone

wants a roadster with every possible computer aboard. The Z4 has BMW’s trademark solid feel at speed, and the cabin is downright quiet with the top up. You could take a chatty road trip with a friend and not raise your voice once. The topdown ride is quite civilized too, with wind buffeting kept nicely in check. On the handling front, it’s true that the Z4’s somewhat numb electric-assist steering doesn’t channel the mechanical spirit of older BMWs, but you can still have a lot of fun in this car when the mood strikes. The grip and body control are certainly there.

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October 2013 Vol. 2 No. 10

Pictorial Events Indonesia International Motor Show 2013 TPP/Rians Rivco/Heros Barasakti

This year’s theme is “Smart Mobility Vehicle” which wants to emphasize the importance of fuel efficiency with the introduction of efficiency standards that reduce fuel wastage and reduce excessive exhaust emissions.

he largest auto show in the country, Indonesia International Motor Show (IIMS) was held on September 19 at JIExpo, Kemayoran. The exhibition, which become mandatory for analysts, consumers and lovers of the automotive world was opened by the Vice President of the Republic of Indonesia, Boediono, and was accompanied by the Minister of Industry, Mohammad S. Hidayat, Minister of Transportation, E.E. Mangindaan, Minister of Youth and Sports, Roy Suryo, Vice Governor of Jakarta, Tjahaja Basuki Purnama, Chairman of the Indonesian Automotive Industry Association (Gaikindo), Sudirman MR, Chairman of the Organizing IIMS 2013, Johnny Darmawan, and other relevant officials. The opening was also attended by agent licensee representatives and ambassadors of friendly countries and other invited guests. This year’s theme is “Smart Mobility Vehicle” which wants to emphasize the importance of fuel efficiency with the introduction of efficiency standards

that reduce fuel wastage and reduce excessive exhaust emissions. The ultimate goal of IIMS theme this time is to encourage the development of smart mobility vehicle which are not only considering visual comfort, and affordability in the economic front, but also has a powerful energy-efficient technologies to reduce emissions. This theme is also expected to be a reference for consumers to choose vehicles with technologies that enable fuel efficiency while still promoting the safety and convenience of users. To support this theme, the APM who appeared at IIMS 2013 were also competing to display the design in line with the direction of the theme. There are 36 APM present at this exhibition, among others Audi, BMW, Chevrolet, Chrysler, Dodge, Daihatsu, Ford, Honda, Hyundai, Jeep, Kia, Mazda, Mercedes-Benz, Mini, Mitsubishi Motors, Nissan , Peugeot, Smart, Subaru, Suzuki, Tata Motors, Toyota, and VW. While commercial vehicles of brands that will be present is Dyna, FAW, Foton, Fuso, Hino, Isuzu, MAN Trucks, Tata Motors, and UD Trucks.

Vice President of Indonesia, Boediono accompanied by several ministers of Indonesia Bersatu II cabinet at the opening of IIMS 2013

The visitors at IIMS 2013

F1 driver, Kimi Raikkonen’s car was exhibited at IIMS 2013.

Deutsche Bank Organizes Site Visit to Kota Jababeka TPP/Heros Barasakti

PT Deutsche Verdhana Indonesia arranged a site visit to Kota Jababeka for several of their premier clients/investors on October 4, 2013. The itinerary included a visit to a manufacturing facility in Jababeka Industrial Estate in the morning and a visit to the Cikarang Dry Port in the afternoon. The group of about 20 investors, including Ashmore, BNP Paribas, Ciptadana, Karst Peak Capital, Lombard Odier, Matchpoint Investment Management, Westwood, and several others, had lunch at the Jababeka Golf and Country Club, during which they were also served presentations by PT Grahabuana Cikarang (GBC), a whollyowned subsidiary of PT Jababeka Tbk (KIJA) and PT Cikarang Dry Port, also wholly owned by

KIJA. GBC’s presentation was given by Tanto Kurniawan and Suteja Darmono, President Commissioner and Managing Director of GBC respectively. They informed the investors of GBC’s new Memorandum of Understanding with PT Plaza Indonesia Realty Tbk, which was signed with the aim to develop a Mall Plaza Indonesia in Kota Jababeka. Construction of this mall, which will undoubtedly increase KIJA’s land value, is expected to start in middle of next year. Tanto and Suteja also informed the investors that Kota Jababeka will become more accessible in the near future with two additional toll access gates (at km27 and km 34.7), which are slated to become operational by the end of the year. Kota Jababeka is currently served by

the Cikarang Barat–Lemahabang toll access gate. Benny Woenardi, Managing Director of CDP, and Datum Mas’Mirdhana, Account Executive of CDP, treated the investors on a presentation of Cikarang Dry Port. Key message that they conveyed was that the Cikarang Dry Port is an official international Port of Origin and Port of Destination with international port code IDJBK. With customs facilities available, importers and exporters can now use CDP as a faster and cheaper alternative to the inefficient and expensive international seaport Tanjung Priok in Jakarta. After the presentation, the group made an inspection of CDP’s facilities, including container yard, empty container depot and customs office.

Benny Woenardi, Managing Director of Cikarang Dry Port.

Presentation by Tanto Kurniawan, President Commissioner of PT . Graha Buana Cikarang and Suteja Darmono Managing Director of PT. Graha Buana Cikarang.

Garuda Indonesia Travel Fair 2013

Datum Mas’Mirdhana, Account Executive of Cikarang Dry Port.

TOP 1 Ack Attack TPP/Rians Rivco

TPP/Rians Rivco

PT Garuda Indonesia held a Travel Fair (GITF) 2013 at the Plenary Hall and Cendrawasih room, JCC from 13 to 15 September. GITF 2013 followed by approximately 50 wellknown travel agencies and 20 hotels that offer tour packages to all tourist destinations in various parts of the world at an attractive price. GITF 2013 in Jakarta is the culmination of the GITF roadshow in 15 major cities in Indonesia, among others, Makassar, Manado, Padang, Surabaya, Yogyakarta, Bandung, Balikpapan, Denpasar, Medan, and Semarang. At the event, visitors could experience the feel of the “First Class” service on Garuda Indonesia Boeing 777300 ER. The service in the form of: Pre & Post-journey Services, the Limousine Service, Cabin Mock-up of Boeing 777-300 ER aircraft which displaying first and excecutive class interior cabin, first class lounge, and luxury and comfortable lounge, which reserved for first class customer before entering the plane. In addition, the visitors could follow the Best Deal program to get various attractive deals for domestic and international tickets.

One of booth participant at GITF filled with visitors who eager to see the promo of tour packages that offered.

PT Taman Wisata Candi Borobudur, Prambanan, and Ratu Boko participate in the event Garuda Indonesia Travel Fair 2013 held at JCC.

The exhibition took place from 13-15 September 2013 at JCC.

During his visit to Indonesia, Business Development Manager TOP 1 Oil Products Matthew J. Ryan gives views of the TOP 1 Ack Attack that still hold the title, “The World’s Fastest Motor.” Ryan mentioned, despite the record breaking competition backdated to October, the TOP 1 Ack Attack still believe it can outperform its competitors. “We need to explain why we are all active in the Land Speed Shootout. We have to prove to the public about the TOP 1 Oil achievement in extreme racing that have a spectacular sensation. The achievement is a reflection on the quality of our oil,” said Matt Ryan. “We utilize the Land Speed Shootout, which is much more risky than the Moto GP or Formula-1. A ‘pilot’ of super Streamliner must have the courage and the extra ability to compete. From the hard work that we elaborated, TOP 1 Ack Attack motorcycle managed to be the fastest motorcycle in the world in 2010, the record then recognized by the FIM and recorded by the Guinness Book of World Record,” he added. The top speed record of Moto GP is at 347.4 km per hour by Ducati Desmosedici GP4 990cc driven by Loris Capirossi at IRTA Test, Catalunya 2004. Meanwhile, Formula 1 record set by Antonio Pizzonia of the BMW Williams with a speed of 369.9 km per hour. Meanwhile the Ack Attack acceleration on 0-100 kph is 2.4 seconds, compared

Business Development Manager TOP 1 Oil Products Matthew J. Ryan with President Director Top 1 Indonesia Heri Djohan.

The success of Ack Attack based on performance of TOP 1 Action Plus oil that was one of the Indonesian riders’ favorite products. Lamborghini Aventador with 2.7 seconds, Ferrari F12 Berlinetta 3.1 seconds, BMW S1000RR Motorcycle 2.7 seconds and Ducati Motor 2.9 seconds. Ryan also said that the success of Ack Attack based on performance of TOP 1 Action Plus oil that was one of the Indone-

sian riders’ favorite products. TOP 1 Action Plus is oil that has been formulated with special formula, and very useful for 4-stroke motorcycle made in Japan. As is known, TOP 1 Ack Attack is using Suzuki Hayabusa-powered engine 700900 HP which is also made of Japan. “As you know, Ack Attack speed is 605.7 km per hour. In the next game, we’re pretty sure Ack Attack can still be the fastest and can exceed 400 mph (643.7 km per hour),” he said.

October 2013 Vol. 2 No. 10

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Pictorial Events Wayang Kulit Performance at Indonesia Movieland TPP/Heros Barasakti

Indonesia Movieland held leather puppet show performed by puppeteer Ki Adimulyo with the story of “Vishnu Tumurun”. The show was attended by Indonesia Movieland Director Dr. Titus Leber and more than 500 enthusiastic audiences.

he synopsis of Vishnu Tumurun is about Mandura kingdom, led by Prabu Basudewa, where the state is in emergency condition; the state officials are not think for the, they are selfish; they battle for positions, power, wealth, and they defeat each other and have mutual suspicion. While the people in the state are needy, hard to live, hard to find a job, and less attention from authorities. These things make Prabu Basudewa angry and tell his siblings Raden Rukma and Ugrasena about the country’s situation. Therefore, King Basudewa instructed his siblings to improve the situation. Before the conversation was

finished, Patih Sara Gupita came and reported that the enemy from Sengkapura has come to Mandura. Sengkapura’s king is Prabu Gorawangsa; he wants to seize his power and impose Prabu Basudewa. Prabu Basudewa sent his siblings to evict Sengkapura’s troops. Prabu Basudewa was always do the revere-meditation (pray day and night), in order to please the gods to bless him a son as his successor to make peace and welfare state. Then Betara Guru granted his wish. Betara Wisnu was sent to the earth, born from Prabu Basudewa’s wife. And this crown prince will make peace and the welfare of its people and expelled the insolence from Mandura.

Campursari performance opened the show.

Dr. Titus Leber symbolically gave the wayang kulit to Ki Adimulyo.

Ki Adimulyo admitted that he like the leather puppets since his childhood.

The President High School students joined the show by singing March of SMA President and “Hari Kemerdekaan”.

The Event for Financial Masters to Share the Financial Success Secrets TPP/Heros Barasakti

Wealth Expo (WE) 2013 held at Kota Kasablanka, Jakarta, on 13-14 September 2013. WE were attended by international speakers, among others, Chris Gardner, a speaker who inspired the movie “The Pursuit of Happiness” in America. In addition to Gardner, WE were also attended by Adam Khoo, Merry Riana, Han Budiyono, James Gwee, and Moh. Ismail. Han Budiyono emphasized the importance of learning the business. According to him, so many businessmen are forcing themselves to build their business empires but did not have a mentor. Though the price to be paid far more expensive than investing on a coach. “Which one is more expensive, a good education to improve the

quality of the mind set and skill in business or downsize to avoid investing money on education but has risk of lacking of business skill development?” said coach Han in front of over 3000 participants at Wealth Expo. He added that, employers who do not want to invest in education will cost far greater. The costs they will spend are the lack of skills to manage employees, lack of strategies for coping business competitors, having so many blank spots until no longer able to face problems. “Financial success is not only due to luck or hard work but there is the knowledge and competence that supported by learning system. Every successful businessman is a successful learner,” conclude Han.

According to coach Han Budiyono, the success of a business depends on the quality of the business owners.

The enthusiasm of the Wealth Expo 2013 audience.

40 Companies Participate in Cikarang Industrial Expo 2013 TPP/Heros Barasakti

Cikarang Industrial Expo (CIE 2013) officially held at Sukamdani-Riady Ball Room Hotel Sahid Jaya Lippo Cikarang. CIE is an industry trade show held by PT. Tiga Pilar Manajemen Indonesia (TPMI) which lasted for three days (9-11 October). The opening of CIE was attended by President Director of TPMI, Muslim M. Amin, Kadin chairman of Bekasi district, Obing Fachrudin dan head of industry, trade, SMEs of Bekasi, Wiwik Kadarwiyati. Obing Fachrudin said, “Bekasi is the largest industrial area in South East Asia, so there are a lot of the types of industries here, ranging from SMEs, national and multinational companies. Around 4000 companies are established here, and opened job opportunities for local people and migrants. Later the industrial area not only as the area of factories but can also be a tourism area,” he concluded.

A total of 40 booths from various companies participate the CIE 2013. Among others, Citra Harapan Jaya, Kyoceran Elgi, Gewin, Chunpao Steel Indonesia, Wanners Pump Ltd, Demag, Artha Jaya Engineering, Spektris, TNT Express, Momentous, Sukses Unggul Sejahtera, Berkat Safety, Permai Jewelry, Holcim Indonesia, Daido SP Indonesia, Sheneider, etc. CIE in 2013 also participated by company engaged in the field of equipment and services provider for the industry (Energy, Construction, IT, Environment, Bio Fuel, and Security & Safety Services) to connect the local and international suppliers and contractors of manufacturing, engineering services & subcontracting industry and project contractor for their latest innovative features to serve the needs of local industry in Bekasi, Cibitung, Cikarang, Karawang and Cikampek.

Kadin Chairman of Bekasi district, Obing Fachrudin, “CIE should be a regular agenda within the industrial area in Bekasi.”

Head of Industry, Trade, SMEs Bekasi, Wiwik Kadarwiyati.

Hydra-Cell, one of the manufacturer of pumps.

Elgi launched the Forklift variant.

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October 2013 Vol. 2 No. 10

Events Review

Say Yes When a Headhunter Calls TPP/Rians Rivco

In 2021 the need for managers and executives in Indonesia will increase by 33%, making up 45% of all professions in indonesia. Therefore, the role of a headhunter will be more significant. A headhunter hired by a company can give an objective assessment of the best candidate.

n the next 10 years, the need for personnel in executive and manager levels in Indonesia will increase significantly. In an discussion held at the Financial Club Jakarta, Pri Notowidigdo, Managing Partner Amrop Indonesia, said that in 2021 the need for managers and executives in Indonesia will increase by 33%, making up 45% of all professions in indonesia. Therefore, the role of a headhunter will be more significant. A headhunter hired by a company can give an objective assessment of the best candidate. For the candidates, a headhunter can give feedback about the candidates themselves professionally and recommend what kind of contributions they can make for the company. Pri said, “Say yes when a headhunter calls!”. Pri said usually a headhunter is looks for candidates that

have certain qualities, among others, experience in relevant field, leadership, strategic thinking, and the ability to lead people. Besides, there are also character, attitude, communication, knowledge, skills, needs, interest, and achievement. Pri said that in the era of globalization, the labour market experiences significant changes. According to him, there are several factors that have made the labour market more complex. For instance, young labours that want a meaningful job but want have professional freedom, higher rewards, and flexiblity. Then, there is a global competition where there are foreign workers in foreign and domestic markets that produce a multicultural work environment. Besides that there is also great technology development that requires worker to follow and not to be outdated. “So ‘gaptek’ people will be hard to compete,” Pri said. These are the things that

make the labour competition tighter. To be a leader and have a strong workforce, Pri gave some tips. First, identify yourself. Be honest with yourself, specify the important things in life, decide which way you and the team will take the company, and be proactive. Second, “attend” wherever you are. Give 100% attention to your audience, do not be diverted by handphones. Third, be a part of the community. “By transforming people arround us, we will also be transformed,” he said. Fourth, attempt to achieve Level 5 Leadership which is personal humility and professional will. “Also we have to remember that everything is not always about fame, fortune, praise, or strength, but to build, create, and give something that is more everlasting than ourselves,” he concluded.

Indah Budiana from CIMB Niaga asked about how to manage the company as well as running the household.

Pri Notowidigdo, Managing Partner Amrop Indonesia

The participants look enthusiast about the Breakfast Dialogue event which held at the Financial Club.

PRESIDENT MODEL UNITED NATIONS 2013

The Arena of Diplomacy for Students in Global Level TPP/Rachmat W. Suryo

President Model United Nations (PRESMUN) 2013, a collaborative event between President Model United Nations (PresUnivMUN) and President University Major Association of International Relations (PUMA-IR), was opened on Thursday (19/9) at the Ballroom of President University, Cikarang.

Rector of President University Dr. Chandra Setiawan.

RESMUN 2013 was attended by students across the Asia-Pacific region from six international universities, 14 national universities and three high schools. Rector of President University Dr. Chandra Setiawan said this year’s PresUniv MUN was better compared to the previous year. This can be seen from the participants, as this year there were many students from foreign universities in the Philippines, Malaysia, the UK and others. In addition, he said, in terms of President University students’ readiness, this year’s enforcement is better because the whole event not only involved International Relations students but also across majors. “Also external supports from sponsor or speakers were better than last year,” said Rector. He continued, “I hope PresUniv students can learn and reflect from other participants in diplomacy and event management. Students could also draw lessons on how to work together in a team. Then they also contribute in the development of student character as future leaders.” Meanwhile, Head of International Relations Program Study of President University Prof Anak Agung Banyu Perwita said that the performance of this year’s MUN has an international flair compared to last year’s MUN and other MUNs held by other universities in Indonesia. “We expect the coming year will involve more foreign participants, at least at the level of ASEAN,” he said. He further said that in the coming years the university will

Head of International Relations Program Study of President University Prof Anak Agung Banyu Perwita

PRESMUN 2013 was attended by students across the Asia-Pacific region from six international universities, 14 national universities and three high schools.

by the Asia-Pacific region, which is summarized in the theme of this year, “Improving Development, Preserving Security”. For four days and three nights the delegates experienced intellectual exchange, a unique social activity that was an incredible experience for them.

dents and graduates to compete at a global level,” he concluded.

send delegations to compete at a global level of MUN such as World MUN and Harvard MUN at Harvard University, the largest MUN and most prestigious in the world. “We will also make more sem-

inars and international conferences as we did with Teto(Taipei Economic and Trade Office). These activities will be done to provide more advantages to other universities in the country,”he explained.

In addition, he said, PresUniv would give more internship opportunities abroad as it has been done over the last two years. “Our involvement in many international events will certainly enhance the ability of our stu-

On the first day of PRESMUN, a seminar was held entitled “The Future of Asia Pacific Integration” with guest speaker HE I Gede Ngurah Swajaya Agung, Indonesian Ambassador to ASEAN, and Nabila Sabban, lecturer of PresUniv. This seminar was presented as excellent preparation materials for PRESMUN delegates. In the opening ceremony,

guests and attendees also enjoyed an impressive blend of ASEAN culture. Vietnamese traditional dance and Saman dance of Aceh welcomed the delegates on the first day of PRESMUN. The entire conference took place at Hotel Sahid Lippo. In the five sessions the delegates of the General Assembly (GA), the ASEAN Regional Forum (ARF) and the United Nations Security Council (UNSC) debated international issues in the areas of development and security faced

One participant of PRESMUN from Japan, Cindy, said “This is not the first time I attended MUN, but this is the best MUN I ever took part in. I thought this was not an event organized by students but by a very professional event organizer.” In line with Cindy, Visakha T, a participant from Bangladesh studying in Australia, said that PRESMUN this time was more remarkable than before. Visakha said, “It was an amazing experience that I got. I made friends with people who are fun to be with and we learn much from each other.” On 22 September 2013, President International Model UN 2013, sponsored by Pertamina, Telkomsel, Marumo and DIKTI, was officially closed by Secretary-General of PRESMUN Putu Ayu M. Amanda Pratama.

October 2013 Vol. 2 No. 10

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Events Review

ONE FC Eclipsing Its Competitors in Asia ONE FC, the largest mixed martial arts organization in Asia, has secured a stranglehold in the mixed martial arts scene in Asia.

NE FC’s reach has extended far and beyond, it has made media appearances in CNN and the New

York Times. ONE FC CEO Victor Cui has made speaking appearances all across the world, and its top fighters like Bibiano Fernandes and Shinya Aoki are universally recognized. ONE FC continues to push boundaries and sell out arenas in countries where combat sports is traditionally not popular. ONE FC is fiercely focused on Indonesia, it impressed the packed crowd in attendance at Istora Senayan for ONE FC: CHAMPIONS & WARRIORS. Fans were treated to a night of exhilarating action, culminating in a clash of two of the best strikers in the Lightweight division, KotetsuBoku and VuyisileColossa. CEO of ONE Fighting Championship Victor Cui stated, “ONE FC put on another night of ex-

citing world class MMA action that captivated the Indonesian audience and millions of viewers around the world. Local heroes emerged while international stars staked their claims for a title opportunity with impressive finishes. ONE FC: CHAMPIONS & WARRIORS proved to be a resounding success and ONE FC will be back in Indonesia very soon.” Since ONE FC’s inception two years ago, the Mixed Martial Arts (MMA) circuit in Indonesia has been growing at an exponential rate, with a new MMA gym in almost every district. Much like how the UFC has monopolized the mixed martial arts industry in the west, ONE FC has done the same in Asia and the argument can even be made that they have surpassed the UFC’s accomplishment considering the speed at which the industry has grown in the region. With many more events lined up for the end of the year, ONE FC will be looking to go out with a bang.

SINCE ONE FC’S INCEPTION TWO YEARS AGO, THE MIXED MARTIAL ARTS (MMA) CIRCUIT IN INDONESIA HAS BEEN GROWING AT AN EXPONENTIAL RATE, WITH A NEW MMA GYM IN ALMOST EVERY DISTRICT.

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Special Report

SECTION C October 2013 Vol 2. No. 10 www.thepresidentpost.com

A Portrait of CEOs of State-owned Enterprises MII

Managing and leading state-owned enterprises (SOEs) is not an easy task due to the employees’ passive work culture and bureaucratic mindset as well as lack of funds from shareholders, in this case the government. All are obstacles for chief executive officers of SOEs to remove swiftly in order to deal with competitors. But for certain people, those conditions are not barriers to expand SOEs

ndonesian Industry Magazine reviewed a number of successful CEOs who have tirelessly improved the performance of SOEs. They are expected to serve as models for other CEOs of SOEs which are plagued by classic issues such as the poor financial performance

to conservative culture. A number of parameters were used, including the financial performance of the companies they lead and also the ability of companies in yielding dividends to the state treasury. The companies must also have an important role in driving the economy. Indonesian Industry Magazine specified a number of pa-

rameters for the ranks of The Most Influential CEOs of SOEs. The first is high leadership skill and courage to break established culture. Furthermore, they must have the ability to innovate. Finally, nine names emerged as The Most Influential CEOs of State Owned Enterprises by Indonesian Industry Magazine.

MII

Emirsyah Satar, President Director of PT Garuda Indonesia Tbk.

A Quantum Leap Behind a World Class Airline

Emirsyah Satar changed Garuda Indonesia from an airline company with a huge debt into one offering world-class services.

s soon as he gained the number one position in Garuda, he closed some routes and downsized the Garuda fleet. He was considered shrinking the company. But Emirsyah was not doing that without any reason. He said that closing some unprofitable routes was aimed to stop losses. The decision to close lossmaking routes is one of the requirements he made before accepting the post in 2005. He also asked the government to no longer demand Garuda to fly unprofitable routes.

Emir emphasized his desire to make Garuda Indonesia a five-star airline. According to him, among 238 airlines in the world today, only 23 airlines are categorized as four-star by Skytrax, while only six are categorized as five-star airline. He wants Garuda to be a five-star airline in 2015.

Slowly but surely, the man who was born in Jakarta June 28, 1959, began to run revitalization programs. A program called ‘Quantum Leap’ was prepared, and he began to increase the number of new aircrafts in Garuda to improve its services. The Quantum Leap program comprises adding new routes and increasing frequency of flights, coupled with adding new aircrafts as well as running efficiency programs and improving utilization of assets.

Each year, Garuda continues to bring in new planes. This year, Garuda Indonesia will receive 24 new aircrafts, consisting of three Airbus A330, 10 Boeing 737-800NG, seven Bombardier CRJ1000 NextGen and four Boeing 777-300ER. The last mentioned arrived in June and October 2013 to serve long haul routes, including Jakarta-Jeddah and Sydney-Jakarta-London. Up to 2015, Garuda plans to have as many as 194 units, comprising 144 units for Garuda and 50 units for Citilink. Emir also emphasized his desire to make Garuda Indonesia a five-star airline. According to him, among 238 airlines in the world today, only 23 airlines are categorized as four-star by Skytrax, while only six are categorized as five-star airline. He wants Garuda to be a five-star airline in 2015. To restore the image as the number one full-service airline, he is running a branding strategy to create a new services culture in Garuda based on the value of hospitality and traditions of Indonesia. He wants passengers

It’s a holistic approach, to make every flight special and always remembered by passengers. And this will be reflected during the entire journey, from checkin up to in-flight, on-board service, also to the food provided,” of Garuda to feel the warmth of Indonesian hospitality when they are in the aircraft of Garuda Indonesia. Earlier, Emir felt that the service of Garuda has no distinctiveness or uniqueness compared to other airlines. Through ‘The Garuda Indo-

nesia Experience’ program, passengers will feel the warmth of Indonesian hospitality followed by quality services in the cabin, supported by safety and comfort. “It’s a holistic approach, to make every flight special and always remembered by passengers. And this will be reflected during the entire journey, from check-in up to in-flight, onboard service, also to the food provided,” said Emir. In terms of financial performance, PT Garuda Indonesia Tbk. in fiscal year 2012 managed to post a profit increase of 100% over the previous year. Garuda Indonesia’s consolidated income was $145.4 million for the period of January to December 2012 or an increase of 100% compared to $72.7 million in 2011. The increase in income occurred as the operating income also went up 12.1 % from $3.09 billion in 2011 to $3.47 billion in 2012 while net profit was $110.8 million in 2012, up 72.6% compared to $64.2 million in 2011. The operating profit increased 82% from $92.3 million in 2011 to $168.1 million in 2012.

Arief Yahya, President Director of PT Telkom Tbk.

The New Spirit of Telkom Indonesia MII

In addition to the launching of the new logo, with the spirit of Independence on August 17, Telkom introduced Mahakarya Telkom Indonesia, including Telkomsel, Indonesia Digital Network and international expansion.

T Telekomunikasi Indonesia Tbk. (Telkom) introduced a new company logo on Independence Day, 17 August 2013, and new services. Telkom’s logo reflects a commitment to provide the best for the people of Indonesia. The new logo features colors and integrates the four basic aspects of the company, namely business transformation, infrastructure, systems and operating models as well as human resources. The colors of Telkom’s new logo is red (symbol of courage, love, energy, perseverance), a reflection of the spirit of Telkom to always be optimistic and courageous in facing challenges and competitors. White (pure, peaceful, light, united) reflects the spirit of Telkom to provide the best for the nation while black symbolizes strong willpower,

and gray reflects technological transition. In addition, Telkom introduced Mahakarya Telkom Indonesia, Telkomsel, Indonesia Digital Network and international expansion. This year, Telkomsel plans to continue with innovation and contribution to Indonesia. Telkomsel presents Mahakarya for Indonesia, namely “Mobile Grapari for Indonesia”, “Broadband City of Indonesia” and “Local Application as Host at Home”. Through Mahakarya, Telkomsel wants to provide the range of services covering all corners of Indonesia from Sabang to Merauke and to support the economic development of Indonesia and the regions. In order to support government programs, Telkom Indo-

nesia launched Mahakarya Digital Network, a breakthrough connectivity to build a better life and increase national productivity. Indonesia Digital Network (IDN) is a vision of true broadband development infrastructure of Telkom. IDN consists of three main components, namely Ring ID, ID Access, and ID Convergence. Ring ID is the infrastructure development of transport network towards IP-based and Optical Backbone Network. The initiatives of Ring ID can be seen from the contribution of Telkom on the Palapa Ring project of the government to connect the whole backbone network based on optical fiber. ID Access is the development of network infrastructure access to High Speed Broadband Access via optical fiber networks and WiFi. Through ID Access, Telkom is commit-

ted to support MP3EI by providing 15 million broadband accesses to home and one million WiFi access. Meanwhile, ID Convergence is the development of network infrastructure of service node to integrate NGN (Next Generation Network) for multiscreen and multi-service. The next Mahakarya Telkom project is international expansion. Through the vision of the company, Telkom has declared itself to become a major player in Telecommunications, Information, Media, Edutainment & Services (TIMES) industry at regional level. Thus, Telkom seeks to bring Indonesia on a par with other countries through international expansion. Telkom has expanded its business and operates to four countries, namely Singapore, Hong Kong, East Timor and Australia.

Arief Yahya, President Director of PT Telkom Tbk.

October 2013 Vol. 2 No. 10

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Special Report Milawarma, President Director of PT Bukit Asam Tbk.

Diversification of Coal Export Market MII

The weakening market in China forced Milawarna to immediately diversify the company’s export markets of coal to other potential countries.

Milawarma, President Director of PTBA, reoriented the export of coal with a focus on targeting new users, namely Vietnam and Myanmar, while still serving regular customers as Taiwan and India. This year, the company is targeting a production of 22.68 million, an increase of 35% from last year’s production.

he economic slowdown in Europe and the pressure in the United States to limit carbon emissions from coal last year brought down the commodity’s price to its lowest level since 2009. Moreover, the prospect of China’s economic growth as the largest coal consumer level is expected continue to slow down, further depressing the price of coal. China has even began to set the calorie limit of coal that may be used by local companies. This situation is certainly a major challenge for companies engaged in coal mining such as PT Bukit Asam Tbk. Fortunately, the fast pace was decided by Milawarma, President Director of PTBA, who immediately reoriented the export of coal with a focus on targeting new users, namely Vietnam and Myanmar, while still serving regular customers as Taiwan and India. Milawarma said that the termination request by China is for low-grade coal. It is related to the use of environmental-friend-

In the first half of this year the company managed to sell 8.8 million tons of coal, up 20% over the same period last year. The company’s coal production in the first half of this year is 8.21 million tons.

In Myanmar, the company is expected to participate as the provider for a power plant project with a capacity of 2x100 MW and 2x200 MW developed by the local government. The company also hopes to participate in the construction of the power plant in cooperation with a local company. Furthermore, in the first half of this year the company managed to sell 8.8 million tons of coal, up 20% over the same period last year. The company’s coal production in the first half of this year is 8.21 million tons.

ly commodities as the global coal market has now changed. Even so, there are still numerous emerging potential markets outside of China, such as Vietnam, Myanmar, India and Taiwan. “We have no problem since Bukit Asam is selling coal with 5,000 kcal,” he said. Meanwhile, low-grade coal with 4,800 kcal4900 kcal is still channeled to the domestic market.

This year, the company is targeting a production of 22.68 million, an increase of 35% from last year’s production. The management projected that the financial performance of PTBA will improve by the end of this year, supported by the current operation of the coal railway company developed by Bukit Asam.

MII

Hendi Prio Santoso, PT Perusahaan Gas Negara Tbk.

Going Upstream in Oil and Gas PT Perusahaan Gas Negara (PGN) now has a different face under Hendi Prio Santoso, an alumnus of University of Houston, Texas, United States. It is now entering the upstream oil and gas business.

ne of the most significant performances of this state-owned enterprise is its move to get into the upstream business of oil and gas. PGN, through its subsidiary PT Saka Energi Indonesia (SEI), has signed an agreement for participation in two Block Production Sharing Contact (PSC) in the country. The first is in Ketapang Block PSC, East Java, with 20% of Sierra Oil Services Tbk., which is operated by Petronas Carigali, and the second participation is Block Bangkanai. Based on information from the management, Ketapang PSC block is estimated to have reserves of 84 million barrels of oil (84MMBOE). Production is expected to begin in 2014 and at its peak will produce 25,000 barrels per day and gas at 50 million cubic feet per day. PGN and SEI are still looking for other opportunities in the upstream oil and gas businesses.

Hendi Prio Santoso said SEI’s action is the first time for PGN to go in the upstream business of oil and gas. He also confirmed to continue seeking opportunities in the upstream sector by ownership participation in oil and gas field potentials to strengthen the portfolio of business energy. Moreover, its seriousness is also indicated by PT Saka Energi Indonesia, which on June 21 acquired Kufpec Indonesia, holder of a 25% interest in Block Ujung Pangkah PSC with a transaction value of $265 million. The signing of the acquisition was made in the Netherlands by buying all the shares owned by Kuwait Foreign Petroleum Exploration Company KSC in Kufpec Pangkah. Under Hendy’s management, PGN shares cash dividend amounted to Rp 4.9 trillion or 58.79% of net income in fiscal year 2012, equivalent to Rp 8.86 trillion. The dividend of Rp 202.77 per

In 2012 PGN’s revenue was $2.57 billion, up 16% compared to 2011 of $2.23 billion. The company’s operating profit grew 13% from $898 million to $1.02 billion while net profit in 2012 amounted to $891 million, an increase from $681 million in 2011.

share is an increase of 50.62% from 2011 valued at Rp 134.62 per share. As the largest shareholder, the government gets a dividend payment of Rp 2.8 tril-

lion. The amount increased compared to 2011 valued at Rp 1.86 trillion. In 2012 PGN’s revenue was $2.57 billion, up 16% compared to 2011 of $2.23 billion. The company’s operating profit grew 13% from $898 million to $1.02 billion while net profit in 2012 amounted to $891 million, an increase from $681 million in 2011. The average selling price of PGN’s gas in 2012 amounted to $8.54 per MMBTU. The company also remains committed to improve the utilization of natural gas in the country, one of them is to develop a distribution network in Central Java. In total, the network will stretch along more than 350 km with 16-inch diameter pipes. The construction of natural gas pipelines will be implemented in three stages in different regions. The first phase will begin in Semarang and surrounding areas along more than 45 miles and is targeted for completion in 2015.

Hendi Prio Santoso confirmed to continue seeking opportunities in the upstream sector by ownership participation in oil and gas field potentials to strengthen the portfolio of business energy. Under Hendy’s management, PGN shares cash dividend amounted to Rp 4.9 trillion or 58.79% of net income in fiscal year 2012, equivalent to Rp 8.86 trillion.

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October 2013 Vol. 2 No. 10

Special Report Sofyan Basir, President Director of PT Bank Rakyat Indonesia Tbk.

Transforming BRI into a Modern Bank MII

About a decade ago, PT Bank Rakyat Indonesia Tbk may still be looked down as a village bank that mostly operated in remote areas. But now, under the leadership of Sofyan Basir, BRI has been transformed as a large bank ready to compete with other commercial banks.

I Sofyan began to create a network of branch offices in the countryside after all units can be connected through online information technology. He realized that the banking industry cannot be separated from technology.

n the hands of Sofyan Basir, BRI has been transformed into a modern bank without losing its core business as a financial institution for micro and rural credits. With a powerful network in remote areas, BRI became a massive financial entity, and is ready to compete with other commercial banks. Sofyan began to create a network of branch offices in the countryside after all units can be connected through online information technology. He realized that the banking industry cannot be separated from technology. Thus he equipped all BRI network with information tech-

nology. He also multiplied the access of BRI ATM network in many locations, both in rural to the urban areas. Within five years, with adequate technology, BRI continually provides improved service to customers. For instance, BRI ATMs, which initially only had 30 feature options, grew into 124 features. This ATM service is already comparable with other features provided by other private banks. The number of BRI ATMs has increased significantly, from 3,778 in 2009 to 14,292 by the end of 2012, making BRI with the largest ATM network in Indonesia.

The First Multinational SOE

Preparing the Social Security Agency (BPJS)

The desire to be a SOE that not only is a domestic powerhouse does not seem to be a big problem for PT Semen Indonesia. Under the leadership of Dwi Soetjipto, PT Semen Indonesia is now a global player.

PT Jamsostek currently has a large project to transform itself into the Social Security Agency (BPJS). Six pillar programs were prepared for a smooth transformation.

MII

Since the last few years, Dwi Soetjipto has attempted to intensify the formation of a strategic holding company which ensures a better implementation of synergies in all operational aspects of the company under a group of companies.

operartions to other countries. It is characterized by the final transaction of the acquisition of 70% shares of Thang Long Cement, a leading cement company in Vietnam with a production capacity of 2.3 million tons per year. The acquisition of Thang Long Cement Company also made the company the first state-owned multinational corporation. The company has established its position as the largest cement producer in Southeast Asia with a

capacity of to 28.5 million tons per year. Although beset by the economic crisis, Semen Indonesia’s sales has been satisfactory: 7,491 million tons by the end of July above the target of 7,324 million tons. The sales in the first half of 2013 went well. Additional capacity from the Tuban IV and Tonasa V plants were able to boost the company’s market share from 39% to 44%. In East Java, Semen Gresik was particularly

continues to show an upward trend. Until the end of December 2012, BRI reported a net profit of Rp 18.5 trillion, an increase of 22.79% compared to 2011. The management explained that profit earnings is the tangible result of the business transformation, which provides a stronger focus on the SMEs segment by maintaining prudential banking policy, expanding the network unit and e-channels and e-banking as well as other IT-based products and services. In the first half of 2013, the company reported a net profit of Rp 10.012 trillion, up 16.3 % from the same period in 2012 (Rp 8.61 trillion).

Elvyn G Masassya, President Director of PT Jamsostek

Dwi Soetjipto, President Director of PT Semen Indonesia Tbk.

Dwi Soetjipto is the figure behind the formation of a strategic holding company, PT Semen Indonesia. Since the last few years, he has attempted to intensify the formation of a strategic holding company which ensures a better implementation of synergies in all operational aspects of the company under a group of companies. The company is able to optimize its potentials and competence in the field of operations, production and especially in marketing. It would be combined into a better form to give optimum performance. The momentum finally came on 20 December, 2012, at the Extraordinary General Meeting of Shareholders (RUPSLB), when the company officially changed the name of PT Semen Gresik Tbk. into PT Semen Indonesia Tbk. The name change basically completed the first step of an effort to realize the formation of a strategic holding group targeted to synergize all operations. Previously, the company also set a milestone: it no longer is a major player in the domestic market as it also began to spread their

The increasing number of ATM is followed by increased transactions, both in number and nominal terms. BRI ATM transactions quintupled in 2009-2012, from approximately 144.2 million transactions in 2009 to 789.2 million transactions at the end of 2012. Nominally, there was a significant increase, from Rp 71.6 trillion in 2009 to Rp 429.2 trillion at the end of 2012, or about a six-fold increase. SMS banking services also has increased; the number of users in 2009 was only 244 thousand users, rising to 3.4 million by the end of 2012. BRI’s financial performance

ased on Law No. 24/2011 on Social Security Agency (BPJS Law), which was passed on 25 November 2011, PT Jamsostek will be transformed into BPJS Employment. Furthermore, PT Jamsostek will be dissolved without a liquidation process when BPJS starts to operate on 1 January 2014. According to the BPJS Law, BPJS Employment starts operating no later than 1 July 2015, which is to organize several programs of work accident insurance, old age insurance, pension, and death benefits for members. Serious tasks are now performed by Elvyn G. Masassya as President Director of PT Jamsostek. He immediately set up six pillars of programs to support the implementation and transformation of Jamsostek into a world-class BPJS. The selected program is aimed to increase active membership to 15.2 million. The company is also targeting the management of Rp 181 trillion, with an investment fund of Rp 15.9 trillion. The next program, said Masasya, is providing excellent service to optimize the core and additional benefits. “Additional benefits include housing, health care and ease of transport benefits,” he said.

strong despite tight competition of the industry. In the first half 2013, the company’s EBITDA reached Rp 3.83 trillion, passing the target of Rp 3.73 trillion. Soetjipto said its net profit by the end of June 2013 reached Rp 2.59 trillion, or 11% above the company’s budget. The financial performance, the volume of sales, production and market share also show an upward trend.

The next pillar is forming integrated communications to all stakeholders, including the use of media and social media for information dissemination. This pillar will be realized prior to 1 July 2015. Another effort is to increase the use of multi-purpose smart card social security participation and human resource development and strengthening good governance. This pillar could be pursued after 1 July 2015. The performance of PT Jamsostek in the first semester of 2013 is fairly wellas it has exceeded targets. The company’s profit has reached Rp 1.6 trillion, or 77% of the company’s budget (RKAP) target at Rp 2.1 trillion. When comparing with the same

period last year, it increased by 195%. However, the total premium revenue only reached Rp 12.3 trillion, slightly below the target of RKAP, or 45% of Rp 24.8 trillion. The company’s assets also continued to increase, up to Rp 148.9 trillion, or 94.9 % of the RKAP target in 2013 of Rp 156.8 trillion. In terms of investment, as of June 30 it has reached Rp 143.6 trillion or equal to 96% of the total set at RKAP in 2013 amounting to Rp 149.1 trillion. Membership numbers are also increasing. As of June 30, 2013, membership of TK, JKK, JHT and JK grew by 11% compared to the same period in the previous year. The company has set a target of participation of 37 million members in 2017.

ENGLISH EDITION

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Special Report Ignatius Jonan, President Director of PT Kereta Api Indonesia

The Man with the Midas Touch MII

After more than three years of preparation, in 2013, PT Kereta Api Indonesia (KAI) created two new milestones in the Indonesian railway transportation business: all trains (KRL) now use AC, and the first airport train in Indonesia at Kualanamu airport.

resident Director of PT KAI Ignatius Jonan is very proud of his achievements and believes that the two new milestones will bring KAI into the next phase: to be more modern, more adaptable in trends, and improved services. Since joining KAI, Jonan always dreamed of having commuter services that consist of one class only. After struggling with the idea for almost three years, his dream has now finally come true. Jonan first changed the company’s mindset from productoriented to customer-oriented by applying IT in services, business, finance and HR. IT in public and commercial services means transparency in ticket purchasing even outside railway stations, namely Reservation and Purchasing Online Ticketing via

Jonan first changed the company’s mindset from product-oriented to customer-oriented by applying IT in services, business, finance and HR. internet banking and Contact Center, Cooperation with Bank BNI, BCA. Also, to issue prepaid cards to purchase tickets in cooperation with PT Telkom by developing a synergy on ticket purchasing using Vending Machine (Rail Box), and in cooperation with the Post Office and mini-

markets like Indomart and Alfamart to have POS (Point of Sales) in ticket reservations and sales. Such innovations make it easier for users to get train tickets anytime and anywhere. In addition, the expansion of ticket sales channels through sales agents also provides employment for train ticket seller agents. In the first year of his leadership, the changes are evident: Gambir station now appears more comfortable and clean as it is now freed from serving the Jabodetabek Commuter trains. The station only serves executives long-distance trains. The existence of an official taxi operator in the station also offers convenience to users. What’s more amazing is that PT Kereta Api Indonesia is a successful business entity: its income has increased from Rp 3 trillion to Rp 7 trillion.

Richard Joost Lino, President Director of PT Pelindo II

Making IPC a World-class Port

Since joining KAI, Jonan always dreamed of having commuter services that consist of one class only. After struggling with the idea for almost three years, his dream has now finally come true.

Director of Pelindo II, RJ Lino is determined that 12 ports under Pelindo II a customers’ choice with world-class service quality. MII

President Director of Pelindo II RJ Lino determined in enabling 12 ports under Pelindo II to be the customers’ choice with world-class service quality.

or decades, this country’s businessmen always complain about the poor condition of national ports. The chaotic conditions in the ports have an impact on the cost of logistics. Moreover, it is even getting worse if we talk about issues on the bureaucracy, slow response, high rates and so on. The condition is often cited as the reason behind our low business competitiveness. In addition, lack of port infrastructure has made PT Pelindo lose revenue because most of the flow of goods to the port goes to Singapore or Malaysia. The high cost of logistics in this country prevents many Indonesian products to compete well with foreign products. In addition, the goods distributed in Indonesia are manufactured overseas, such as in China, since the logistics costs there are lower. The high logistics cost to be borne by the business community could hamper investments. Those conditions have made President Director of Pelindo II RJ Lino determined in enabling 12 ports under Pelindo II to be the customers’ choice with world-class service quality. Lino is committed to begin improvements in infrastructure, utilizing high-tech in every port system and implementation of services program for 24 hours a day.

To give a new energy in the management of the port, on 22 February 2012, Pelindo II unveiled a new identity and was transformed into IPC (Indonesia Port Corporation). IPC was established as a provider of port services in Indonesia that is efficient and modern in various aspects of its operations in order to achieve the goal of becoming a world class port operator. Under the leadership of Lino, Pelindo II is working to be more effective and more efficient in serving the needs of users. His commitment is to give optimal contribution to the creation of a reasonable structure in logistics costs, which in turn will enable companies to bring down the price of goods. The impact is that it will raise economic growth in Indonesia. The improvement of services and infrastructure and superstructure facilities at Tanjung Priok port continues to be driven in line with the vision of Tanjung Priok port to be able to compete in the modern global level. The synergy of all stakeholders in the port to increase the level of service and productivity boosted the confidence of international shipping operators to use the facilities of Tanjung Priok port. Now, Tanjung Priok is ready and able to accept the arrival of the transcontinental big container with a capacity of over 4,000 TEUs.

The company continues to maximize the capacity of port services with the addition of loading and unloading equipment with modern technology. Not less than Rp 800 billion was invested in 2011 for the procurement of equipment to accelerate loading and unloading time, to increase productivity and improve services at the port. Meanwhile, in the field of human resources, all employees are given equal opportunity to obtain education and training, both formal and informal, at home and abroad. Lino’s breakthrough has reaped results. In March 2013, President Susilo Bambang Yudhoyono inaugurated the project of Kalibaru Terminal or New Priok in Nusantara Pura II Passenger Terminal. The project requires an investment up to $2.47 billion or Rp 22.66 trillion in the first phase of construction. The total investment for the entire terminal is $4 billion. Later, New Priok can accommodate EEE-class ships. Which are ships with a capacity of up to 18,000 TEUs. This allows a reduction in the cost per unit of container, and will make logistics cost low. The new terminal will also allow direct container ships entering Indonesia without transshipment activities in other countries.

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October 2013 Vol. 2 No. 10

Living

World’s Happiest Nations Are...

Life’s ups and downs

The global survey was conducted between 2010 and 2012 and follows the Earth Institute’s first rankings released last year. While “the world has become a slightly happier and more generous place over the past five

Denmark, Norway, Switzerland, the Netherlands and Sweden are the world’s happiest countries, according to the survey of 156 countries. the Caribbean, and in Sub-Saharan Africa”, the report said. Reduced levels of corruption also contributed to the rise.

port said. “But in any particular society, chronic mental illness is a highly influential cause of misery.

Governments seeking to improve the happiness of their populations should spend a higher proportion of their health budgets on mental illness, which is the single biggest “determinant of misery” in countries assessed, the study authors said. “People can be unhappy for many reasons -- from poverty to unemployment to family breakdown to physical illness,” the re-

Gross National Happiness

Brain Fitness Can Include Playing Training Games on Computers In decades past, if someone mentioned the word “fitness,” he or she was probably talking about calisthenic routines performed in a spandex body suit. Today, the term “fitness” is as likely to encompass the body as it is the mind. More than simply memory, “brain fitness” refers to a diverse suite of cognitive functions, including attention, working memory, perception, decision-making and emotional regulation, says Dr. Adam Gazzaley, a neuroscientist at UC San Francisco. “The field of brain fitness is built on the underlying concept of brain plasticity — the idea that the brain can modify or shape itself,” he says. Scientists used to believe that the brain developed only during childhood and that the brain’s structure was “set” once a person reached adulthood, after which it began an inevitable mental decline. But new insights reveal that the human brain can regenerate cells, forming new neural pathways throughout life. This should come as good news to an aging generation of baby boomers, as well as to the growing number of people diagnosed with brain disorders and learning disabilities — or anyone interested in making the most of his or her brain potential. And the latest innovations in digital brain training software may help, says Alvaro Fernandez, chief executive of SharpBrains, an independent market research firm that tracks brain health applications in neuroscience. “Computerized brain-training games are designed to strengthen a wide variety of brain functions,” he explains. “The benefit is that they are truly adaptive, offering activities that are at your level — just difficult enough to challenge your brain but not so difficult that they become stressful.” He adds that brain-training software is relatively inexpensive and easily individualized. Though the brain-training software industry is new, the

fftips.com

The brain responds to challenge, not to comfort. Travel to a new country, try to figure out a new currency and how not to get ripped off in the taxi. Learn a new language or new musical instrument.” field is growing. Lumosity, one of the largest such Web-based companies, had 35 million registered users at the beginning of 2013. With tag lines like “You have the power to change your brain,” the program promises to improve memory, attention, processing speed and mental flexibility. (www.lumosity.com) These companies all work in a similar manner: After logging in, you can sample some brain games free. Then, after paying a monthly or yearly fee, you can continue to play and track your improvement. Lumosity recommends that trainees use its program three to five times a week. As a player’s mastery improves, the games get tougher, much like

a standard video game. But the difference is that a brain-training game is designed to improve a specific set of brain functions. Fernandez says that the key components of any brain-training program are novelty, variety and challenge — factors that engage more areas of the brain and stimulate new brain connections. “If you’ve already [solved] 1 million crossword puzzles and you do one more, it’s routine. There will be no benefit. But if you play a new video game, it can be very beneficial to you.” To maintain a healthy brain for life, there probably is no single regimen. Fernando suggests that people care for their brains the same way they care for their bodies: through aerobic exercise, good nutrition and stress regulation. Mental exercise does seem to be important for healthy brain function — though it doesn’t have to come from a computer. “One of my main pieces of advice to older adults is to step out of your comfort zone in general,” says Gazzaley. “The brain responds to challenge, not to comfort. Travel to a new country, try to figure out a new currency and how not to get ripped off in the taxi. Learn a new language or new musical instrument.” LATimes.com

The 2013 World Happiness Report comes on the back of a growing global movement calling for governments and policy makers to reduce their emphasis on achieving economic growth and focus on policies that can improve people’s overall well-being. An idea first proposed in 1972 by Bhutan’s former King Jigme Singye Wangchuck, the concept

of “happiness economics” has now gained traction in many countries across the world, including the UK, Germany and South Korea. The UN first encouraged member countries to measure and use the happiness of their people to guide public policies in July 2011. “It is important to balance economic measures of societal progress with measures of subjective well-being to ensure that economic progress leads to broad improvements across life domains, not just greater economic capacity,” the report said. CNN

Not only do they provide one of the easiest ways to naturally get your daily dose of vitamins from real fruits and veggies, but consuming them first thing in the morning in liquid form allows your body to digest them easier. When the fruits and veggies are blended up, it takes a step away from your stomach of breaking them down and with an empty stomach the nutrients are more likely to be absorbed by your body than pass through. Try adding kale to your smoothie for an extra serving of leafy greens. Smoothies also allow you to get a hefty dose of protein to start your day. Some experts swear by consuming a high protein breakfast with weight loss. Additionally, if you workout in the morning, a smoothie is the perfect post exercise meal thanks to delicious tasting protein powders. My favorites are sweetened with stevia, a natural sweetener, like Jay Robb, Vega, and Perfect Fit. Combine with ½ a banana, 1 tbsp peanut butter, almond milk and a few ice cubs for simple combination. They keep you feeling full

and energized until lunch. The volume of a smoothie is satisfying and will fill up your stomach so that you are not left wanting more. For extra fiber, add a tablespoon of chia seeds or flax seeds to help you feel satiated. Try using lower calorie liquids like unsweetened almond milk at just 30 calories per cup versus skim milk which is 90 for great taste while keeping the nutrition facts in check. Having a liquid breakfast is also beneficial for your digestion. When you first wake up, your stomach is still finishing digesting the previous days food intake. Rather than shocking it right away with a challenging meal to digest, a smoothie allows it to have a little break and finish it’s job of eliminating waste if it wasn’t already. LA Times

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years,” economic and political upheavals have resulted in greatly reduced levels of well being for some nations, the report said. Rankings for Greece, Italy, Portugal and Spain fell dramatically because of the impact of the eurozone crisis, while Egypt, Myanmar and Saudi Arabia registered large falls in the wake of recent political and civil turmoil. Egypt had the greatest fall in happiness levels. On a scale of 1 to 10 -- with 10 rated as happiest -- Egypt averaged 4.3 in 2012, compared to 5.4 in 2007. “We expect, and find, that these losses are far greater than would follow simply from lower incomes,” the report said, noting that the greatest single factor reducing happiness levels in these countries was a reduction in people’s perceived “freedom to make key life choices.” Angola, Zimbabwe and Albania experienced the largest increases across all the countries surveyed. “On a regional basis, by far the largest gains in life evaluations in terms of the prevalence and size of the increases have been in Latin America and

Smoothies and juices are a delicious and nutritionally satisfying way to start your day. Here are some benefits of drinking your breakfast that you might not be aware of!

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Those looking for greater happiness and satisfaction in life should head to northern Europe, but steer clear of Egypt and countries worst hit by the eurozone crisis, according to the 2013 World Happiness Report released Monday by Columbia University’s Earth Institute. enmark, Norway, Switzerland, the Netherlands and Sweden are the world’s happiest countries, according to the survey of 156 countries. Rwanda, Burundi, the Central African Republic, Benin and Togo -- all nations in Sub-Saharan Africa -- are the least satisfied with their lives, the report said. The United States came in at number 17 in the world in terms of overall happiness, but it still lags behind Canada (6), Australia (10), Israel (11) the United Arab Emirates (14) and Mexico (16), according to the Earth Institute. The report ranks the United Kingdom as the 22nd happiest country in the world. Other major nations included Germany (26), Japan (43), Russia (68) and China (93).

Why You Should Start Drinking Your Breakfast

October 2013 Vol. 2 No. 10

www.thepresidentpost.com

Health

Married Cancer Patients Live Longer Married cancer patients live longer than single people who have the disease, suggesting that logistical and emotional support from a loved one may be far more critical to cancer care than previously recognized.

umerous studies have suggested that married people have better overall health than single people, but those data likely are skewed by the fact that healthy people are more likely to have opportunities to marry. However, the latest study did not look at overall health, and instead focused on what happens to married and single people who become ill with cancer. The findings offer a glimpse into the crushing logistical burden that cancer treatments impose on patients, particularly those who are single. “When you have a spouse who is present when the patient is diagnosed, they are an invested party and they are going to more than likely make sure the patient goes to the doctor, that they get the necessary treatments,’’ said

Dr. Ayal A. Aizer, chief resident of the Harvard Radiation Oncology Program and the study’s first author. “We don’t think there’s something intrinsic about people who are married, but we do think it’s the support marriage is providing that makes a difference.” Researchers from several institutions, including Harvard Medical School and the Dana-Farber Cancer Institute, analyzed nearly 735,000 people who received a cancer diagnosis between 2004 and 2008. The study, which used data from the National Cancer Institutes Surveillance, Epidemiology and End Results (SEER) Program, focused on the 10 leading cancer killers: lung, colon, breast, pancreatic, prostate, liver, non-Hodgkin lymphoma, head and neck, ovarian and esophageal cancers.

The study, published in The Journal of Clinical Oncology, found that single patients were 53 percent less likely to receive appropriate therapy than married patients. The finding suggests that maintaining grueling chemotherapy and radiation schedules and taking medication as prescribed is easier for people who have help from a spouse compared with single people who must manage the logistics of cancer treatment on their own.

a more advanced cancer by the time they finally seek a diagnosis. Married patients were 20 percent less likely to die of their disease than single patients. The data do not distinguish between same-sex and oppositesex couples and don’t account for patients who are engaged or living with a partner. Because some of the people labeled as single in the study probably have a committed partner, it’s likely that the findings actually under-

state the scope of the problem for people who are truly coping with a cancer diagnosis on their own. For doctors and hospitals, the data show that being single is an important risk factor for failing to comply with medical treatments, and cancer centers should focus on offering additional support to these patients, said Dr. Aizer. The study also offers a lesson for friends of people who have cancer, showing that small offers of

help – like driving a patient to the doctor or offering to care for their children – can make a meaningful difference in a patient’s survival. “Cancer is a life changing diagnosis,’’ said Dr. Aizer. “Patients have an enormous number of things to think about on top of what they do in their normal everyday life. It’s really important that they have another invested party to help shoulder that burden.” NYT

We don’t think there’s something intrinsic about people who are married, but we do think it’s the support marriage is providing that makes a difference.” huffingtonpost.co.uk

Unmarried cancer patients also were 17 percent more likely to have late-stage cancer at the time of diagnosis, compared with married patients. That suggests that spouses play a role in encouraging patients to see a doctor, while single people may put off doctor visits, resulting in

Testosterone May Alter The Brain After Exercise It’s widely accepted among scientists that regular exercise transforms the brain, improving the ability to remember and think. And a growing and very appealing body of science has established that exercise spurs the creation of new brain cells, a process known as neurogenesis. But just how jogging or other workouts affect the structure of the brain has remained enigmatic, with many steps in the process unexplained. A new study published last month in Proceedings of the National Academy of Sciences may fill in one piece of the puzzle, by showing that male sex hormones surge in the brain after exercise and could be helping to remodel the mind. The research was conducted on young, healthy and exclusively male rats – but scientists believe it applies to female rats, too, as well as other mammals, including humans. The decision to use only males was carefully considered. “We’ve known for a while that estrogen,” the female sex hormone, “is produced in the brain” not just of female animals but also, to some degree, in males, says Bruce S. McEwen, the director of the Laboratory of Neuroendocrinology at Rockefeller University in New York and an author of the study, which also involved scientists from the University of Tsukuba in Japan and other institutions. Estrogen has been well studied

and has many effects, he said, including, scientists suspect, new brain cell growth. While both sexes produce male sex hormones, males produce far more of it – mostly in the gonads but, the researchers suspected, also in the brain. The only way to know for sure if the hormones were being synthesized in the brain would be to shut off production in the testes, to guarantee that hormones from that site wouldn’t migrate to the brain. So some of the rats in the experiment were surgically castrated. The rest underwent a sham operation, in which nothing was removed. That procedure ensures that stress from the operation won’t skew results; all animals will have had the same unpleasant experience. Separately, some of the animals also were injected with a drug that blocks the ability of male sex hormones to bind to receptors in the brain. Those animals might be able to produce the hormones, but they wouldn’t have any effects on the brain. After recovery, most of the rats ran for two weeks on treadmills set at a leisurely jogging pace. Some remained sedentary. Then the scientists examined all of the animals’ brains. They found that, compared with the sedentary animals, the running rats had significantly more of a potent testosterone derivative called fitnesswellnessworld.com

A new study published last month in Proceedings of the National Academy of Sciences may fill in one piece of the puzzle, by showing that male sex hormones surge in the brain after exercise and could be helping to remodel the mind. The research was conducted on young, healthy and exclusively male rats – but scientists believe it applies to female rats, too, as well as other mammals, including humans.

dihydrotestosterone, or DHT, in their brains. Even the brains of rats that had been castrated sloshed with DHT. So the exercise had prompted increased production of the hormone. Most of the animals also had a plethora of new neurons in the hippocampus, a portion of the brain associated with learning and memory. Unexpectedly, however, the animals in this experiment that could not use the DHT in their brains did not experience enhanced neurogenesis. They exercised just as the other animals did, but their brains did not benefit in the same way. This tells us that the uptake of DHT in the brain after exercise “appears to be a necessary step in achieving adult hippocampal neurogenesis,” Dr. McEwen says. In essence, exercise prompts the production of more DHT. And more DHT helps to create more new brain cells. But while those findings may be salutary for men who are active and fit, or planning to become so, they seem potentially troubling for those of us without testes. If DHT is necessary for neurogenesis after exercise and women produce far less of it than men, do women gain less brain benefit from exercise than men? “It’s unlikely,” Dr. McEwen says. One reason that early experiments into exercise and neurogenesis tended to be performed in female rats was that “in rats, females exercise more than the males,” he said. “They’ll run for hours and keep running, even when they’re old.” Elderly males, in contrast, willingly quit working out. In those experiments, neurogenesis was plentiful in the female brains. “It’s very probable that estrogen plays a role” like that of DHT in the female brain after exercise, Dr. McEwen says. Meanwhile, female brains also produce varying amounts of male hormones. So there may be some as-yet-undiscovered interactions between the male and female hormones in the brain that mesh after jogging to increase brain cell numbers and improve the ability to think. But one aspect of the new experiment is already resoundingly clear and reassuring, Dr. McEwen points out. “The exercise in this experiment was quite mild,” he says — the equivalent of jogging at a pace at which someone could speak (or squeak) to a companion. “That’s achievable for most people,” he concludes, “and the evidence suggests that it will improve brain health.” NYT

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October 2013 Vol. 2 No. 10

Travel

Karapan ayam needs a jockey and two roosters with one of their legs tied to the other’s leg. The winner must be the one that recorded the fastest time to defeat its rival.

Sumbawa-style Rooster Race Sumbawa is house to many cultural heritages. However, this time I am more interested in two cultural games, which are locally called the karapan ayam (chicken match) and Badempa.

Text & Photos: Adita Alaik

arapan ayam? Those familiar with the terms “karapan sapi” would probably wonder how the game is played, what the regulations are and more. Badempa is a game to measure one’s calf’s strength. I just had to see these two cultural games when I was in Sumbawa and that’s why I visited Mantar village in Poto Tano subdistrict, West Sumbawa district. A local tourism guide told me that

badempa and karapan ayam matches were to be held in the village 630 meters above sea level. The serenity of the Mantar village is sure to make tourists love this place. The hospitality of its residents had given me a difficult choice to decide where I should stay because all of them opened their doors wide to tourists who wish to stay. I eventually chose to stay at the village head’s house so that I could get information about the Mantar village. It turned out that Mantar village offered other uniqueness: some of its residences were albinos. The number of albinos in

the village would always be seven and that a new one would be born once one of them is dead. Another story from this village as told by the village head is that the locals believe that their ancestors were Portuguese whose ship wrecked in the waters near a beach below the Mantar hills in 1814. Survivors decided to live in the hills and became the Mantar villagers. The next morning I went to take a walk around the village and took pictures of everything I thought were worth remembering from this trip. Suddenly I heard laughter from a group

of villagers who were gathering in a field as they get ready to watch the badempa and karapan matches. At 9 a.m., the match for badempa begun. All in the audience were allowed to take part and from what I saw, all the men didn’t want to miss out on the game. Badempa is played by two men in with each given the chance to kick his rival’s calf. The person who got kicked in the calf was not allowed to run but had to hold on and stay on his feet for as long as he could. As a tourist I was also given the chance to show my strength in the game. Once given the

chance, I tried to kick my rival’s calf as hard as I could. He was a strong young man. But what happened was that I was the one who felt the pain because his calf was as hard as a wooden log! Being the person to do the kicking, one would think you would not feel any pain. But, wrong, the back of my calf also felt the pain after kicking the young man. After lunch time the game changed. The morning game was participated by mostly adults but now the game is dominated by children who brought along a couple of rosters with them each. Children in this village had been introduced to the game since an

early age. Karapan ayam needs a jockey and two roosters with one of their legs tied to the other’s leg. The winner must be the one that recorded the fastest time to defeat its rival. But the rules weren’t that simple. There are also other rules that participants had to comply with, that the rosters cannot step outside the line of the match arena. The other rule is that the pole to tie the rosters had to touch the wooden pole in the finish line. If it didn’t, the rosters would be disqualified. Controlling the roosters is not an easy matter. Many of them ran towards the crowd or ran to the finish line.

October 2013 Vol. 2 No. 10

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Golf

Gunung Geulis Country Club Fresh Air for Good Golf and Great Holiday Gunung Geulis (beautiful mountain in Indonesian) sits at an elevation of 400 to 500 meter above sea level. This golf course is bordered at the north by the Cikeas River. You can imagine how cool the evenings are and how fresh the mountain air is - the right climate for good golf and great holiday.

he Gunung Geulis Country Club is located in the regency of Ciawi-Bogor, a mere 45- minute drive along the Jagorawi Highway or about 50km from the business center of Jakarta. Gunung Geulis Resort is a villa and leisure resort of about 400ha and is well-known for its challenging and beautiful 36-hole golf course. The strategic location and beautiful environment is also supported by a pleasant climate of mountain fresh air and cool climate especially in the morning and in the evening. The mountain terrain blends naturally into the golf complex, giving you a sweeping view of the site. The ambience is both tranquil

There are two 18 holes at Gunung Geulis—the West and East Courses. The club house is equipped with full facilities, part of a comprehensive tourist resort which includes resort cottages, convention facilities, a health centre, a sport complex with indoor and outdoor facilities, holiday villas and a Recreation Center.

The 18-hole West Course was designed by the Golf Architect of Thomson Wolveridge & Perret with a total length of 6,075 metres. It is the first golf course around Bogor built on the hillsides. The picturesque and challenging layout provides enjoyment as well as a stern test of skill and patience to Gunung Geulis Country Club members.

and rewarding. Gunung Geulis (beautiful mountain in Indonesian) sits at an elevation of 400 to 500 meter above sea level. This golf course is bordered at the north by the Cikeas River. You can imagine how cool the evenings are and how fresh the mountain air is - the right climate for good golf and great holiday. There are two 18 holes at Gu-

of Thomson Wolveridge & Perret with a total length of 6,075 metres. It is the first golf course around Bogor built on the hillsides. The picturesque and challenging layout provides enjoyment as well as a stern test of skill and patience to Gunung Geulis Country Club members. Thomson Wolveridge & Perret, with their skills in making difficult terrains, has careful-

nung Geulis—the West and East Courses. The club house is equipped with full facilities, part of a comprehensive tourist resort which includes resort cottages, convention facilities, a health centre, a sport complex with indoor and outdoor facilities, holiday villas and a Recreation Center. The 18-hole West Course was designed by the Golf Architect

All the greens have beautiful comforting countours and good surface, so players need not bother with unfair slopes or breaks.

ly planned the layout to create a pleasant and demanding journey for players. A member, playing West Course for the first time, will most likely find it intimidating and difficult. This will be lessened after he or she becomes more familiar with the different strategies required. The 2nd 18 East Course was also designed by Wolveridge & Perret with the total length of

6,065 meters. It is a course specially designed to be a Buggy Course that goes with the countour of the land. Besides the spectacular vista, the new East Course will be a bigger challenge for members. All the greens have beautiful comforting countours and good surface, so players need not bother with unfair slopes or breaks.

Borobudur International Golf & Country Club

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

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

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

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

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