The President Post Vol. II September 2013

ENGLISH EDITION

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The President Post T H E

S P I R I T

O F

INTERVIEW

I N D O N E S I A BUSINESS

MERRY RIANA: Dare to Dream Big with Integrity to Achieve It! – Page A3

Pertamina Offers Projects For International Bidding – Page B1

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September 2013 Vol. 2 No. 9 www.thepresidentpost.com

FRANCHISE

Local Culinary Entrepreneurs With International Competitiveness – Page C1

55TH ANNIVERSARY OF RI-JAPAN RELATIONS

Celebrating Diplomatic Ties through Culture TPP/Muljadi Suganda

The 5th Jak-Japan Matsuri Festival enhanced diplomatic relations between Indonesia and Japan that was established 55 years ago. The festival was held during 1-8 September by presenting various Japanese cultures, both traditional and modern.

J

apanese Ambassador to Indonesia Yoshinori Katori said that Japanese culture is one aspect with which to improve relations between Indonesia and Japan.

“We’re lucky that Indonesians appreciate Japanese culture,” he said at the opening of the Jak-Japan Matsuri 2013 at Hotel JS Luwansa, Jakarta, Sunday (1/9).

Ambassador Katori added that in addition to culture, education and tourism are also aspects that bolster close relationship between the two countries. He said that Japan wants to boost the number of tourists to Indonesia and to increase the number of Indonesians studying in Japan.

“So education and tourism sectors will be improved in the future,” he concluded.

Ambassador Katori also said that during the 55 years of relations, the two countries have never experienced significant problems. “All cooperation ran without significant obstacles,” he said.

The ambassador added that this year’s Jak-Japan Matsuri was more festive because the bond of friendship between the

Yoshinori Katori Japanese Ambassador to Indonesia

We’re lucky that Indonesians appreciate Japanese culture.”

Jakarta was hosting the ancient Japanese martial arts’ event. The two-day sumo event held on August 24 to 25 at the Senayan Sports Hall. The tournament held as the early celebration of 55th anniversary of Indonesia - Japan relations. The tournament was participated by 41 wrestlers from different countries such as Japan, Mongolia, Bulgaria, China, Brazil, Russia, Estonia, and Georgia.

two countries is based on the strong support of the entire people of Japan as well as the good cooperation with various stakeholders, particularly the government of DKI Jakarta.

Separately, Jakarta’s Gover-

nor Joko Widodo said, “The celebration of the 55th anniversary of Indonesia-Japan diplomatic ties is expected to boost the friendly relations between the two nations as well as to contribute to national tourism through

the increasing number of Japanese tourists to Jakarta and to other tourist destinations in Indonesia.”

Since the beginning Jak-Japan Matsuri Festival was organized to strengthen the friend-

ship between the two countries.

Chief organizer committee JakJapan Matsuri Kazunori Kobayashi said that the 5th JakJapan Matsuri this year reflects the closer relations in the community and support from Indo-

nesians of Japanese people in treading the road to recovery.

Thus the theme is “IndonesiaJapan Always Together”.

Kobayashi added, “Jak-Japan Matsuri is attended by approximately 30 thousand people

each year, and we hope this festival has a place in the heart of Jakartans to develop the eternal flame of friendship between the two countries.”

This year a variety of Japanese culture was presented; in the opening event there were the World Police Band Concert parade and the Bon Odori dance, Sushi Battle and Tuna Cut Show featuring Indonesian chefs working at Japanese restaurants around Jakarta to show their skills in cooking tuna and garnishing sushi. Taiko was performed by Ooedo Sukeroku Ryu Taiko Club followed by a fashion show of traditional Japanese clothings while the JKT48 girls band enlivened the opening ceremony.

Meanwhile, Japan Week was held on 2-7 September at Plaza Senayan featuring a variety of pop and traditional Japanese culture, among others Doraemon show, J-Music Lab and koto musical instrument. There were also an Oshibana workshop (the art of stringing dried flowers and leaves), Kurumie (three-dimensional pictures made of foam in Washi paper packets), Kanzashi (ornaments used in traditional hairdo), and Kinchaku (handbags made from fabric remnants). Also, the children’s Mikoshi procession, talk show with Anime Fan Asia (AFA), and Kendo martial arts.

At the peak of the event, which was held at Monas (8/9), several Japanese dances were performed.

RI Textile Industry Faces New Challenges JAKARTA (TPP) – The clothing industry in Indonesia is known as the textile and textile products (TPT) industry and garment, a labor-intensive industry that absorbs huge numbers of labor.

This sector provides employment opportunities to more than 60 million workers worldwide. It is also a significant formal employment in developing countries. In Indonesia, the textile industry, especially garment, employs 1.53 million people in the textile sector and 520,000 people in the apparel sector (garment) in 2012.

While the garment industry is one of the highest export foreign exchange earner, the value in the last five years has always reached around $6 billion. In 2012, the export value of the garment industry reached $7.18 billion, or 57.65% of the national total textile exports. The description above indicates that the textile industry, particularly the apparel industry, is still one of the main drivers of the national economy.

One problem faced by the national clothing industry

MII

In Indonesia, the textile industry, especially garment, employs 1.53 million people in the textile sector and 520,000 people in the apparel sector (garment) in 2012. While the garment industry is one of the highest export foreign exchange earner, the value in the last five years has always reached around $6 billion.

is the lack of access to domestic financial institutions. Funding from local banks for the revitalization or modernization of plant machinery carries a relatively high interest rate. There is a perception that the national textile industry and textile products are a sunset industry, making banks hesitant to fund them.

“The financial industry here still does not see the textile industry as an important part of industrial growth. They see some textile companies saddled with bad debt and conclude that the textile business is no lon-

ger prospective,” Benny Soetrisno, President Director of PT Apac Inti Corpora who also serves as a special staff member of the Minister of Industry, told Indonesian Industry Magazine.

Benny questioned the sunset perception of the textile industry as clothing is still a major need of the people and that everyone still wants to change clothes for different occasion.

In contrast, foreign banking institutions are active in channelling funds to the domestic textile industry. PT Apac Inti Corpora, Benny said, is now negotiating

the funding for the modernization of its machinery with German banking institutions.

A private bank whose shares are majority foreign-owned, OCBC-NISP some time ago disclosed that it had disbursed loans to the garment industry in Bandung.

“We are very selective but familiar with the textile and garment industry here. So it is not a problem for us to give credit to the industry,” said Corporate Communications Division Head of OCBC NISP Bank Tina Tjintawati.

Yet there is a number of opportunities for the industry to survive and win. According to Benny, the use of cotton in the world is decreasing as most shift to rayon and polyester. Rayon is a man-made fiber made from wood, while polyester is made from petroleum. Two sources of these textile raw materials are in abundant in Indonesia, and the two products should be the backbone of the national textile industry.

The majority of the local industry is still grappling with apparel products. They should actually start to shift to making fabrics for automotive interiors, medical textiles up to geotextiles. Geotextile products have great market development opportunities in

The financial industry here still does not see the textile industry as an important part of industrial growth. They see some textile companies saddled with bad debt and conclude that the textile business is no longer prospective.”

Benny Soetrisno President Director of PT Apac Inti Corpora the country because the product can be used for infrastructure needs such as to resist erosion, even defense needs.

Director of Textile and Miscellaneous Industries of Ministry of Industry Ramon Bangun said that to strengthen the domestic industry, a restructuring program is now underway to help Indonesia improve its competitiveness with other ASEAN countries. Besides, he also hoped Indonesia could reach an agreement with the European Union Comprehensive Economic Partnership Agreement that will enhance Indonesia’s textile market. As pressures often come with opportunities for growth, the national textile industry has a number of opportunities and potentials to grow.

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September 2013 Vol. 2 No. 9

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Opinion

Our Oil and Gas Reserves Regardless of whether or not we still have plenty of oil and gas reserves, all agree that Indonesia must carefully manage them in order to improve the welfare of the Indonesian people.

By Siraj El Munir Bustami

F

ormer Energy and Mineral Resources Deputy Minister Prof. Rudi Rubiandini made a startling statement right after he was installed as the head of the country’s oil and gas regulator SKKMigas on 15 January 2013.

Rudi said that the oil production in 2013 reaches the lowest level. The country’s oil production target continues to drop despite the production target of 900,000 barrels/day in the 2013 state budget.

Prior to that, the late Prof. Widjajono Partowidagdo, whom Rudi succeeded as the deputy minister following his sudden death, said that our biggest mistake was that we kept believing that Indonesia has huge oil and gas reserves.

Such matter has been a source of debates for the government and groups in the public who are critical because the govern-

ment has not been able to provide reliable data about the real oil and gas reserves in Indonesia. For how long will they still be available and keep up with our daily production target? Can’t it be measured with a more reliable data rather than with assumptions that only lead to wild opinions?

The government would actually face a dilemma if it came out with a reliable data. If the data showed that there were only little left, it would automatically create pessimism. Pessimism would have implications on the government’s policies especial-

ly those related to cooperation contracts with contractors. But if the answers were that we still have plenty of reserves, it would automatically create a sense of optimism and it will increase our bargaining power.

However, regardless of whether or not we still have plenty of oil and gas reserves, all agree that Indonesia must carefully manage them in order to improve the welfare of the Indonesian people.

The government has still not until today issued data on Indonesia’s oil and gas reserves either by the Energy and Mineral

Resources Ministry or the National Energy Board. In one of the hearings between the House Commission VII and geologists in 2011, geologists said that they too didn’t know how much oil and gas reserves Indonesia has.

The government, in this case the Ministry of Energy and Mineral Resources, should compile data and issue an official information so that the public can understand the real condition. The data should of course be based on international standards so that the public can support all policies that the government decides to take.

The government has still not until today issued data on Indonesia’s oil and gas reserves either by the Energy and Mineral Resources Ministry or the National Energy Board. In one of the hearings between the House Commission VII and geologists in 2011, geologists said that they too didn’t know how much oil and gas reserves Indonesia has.

Globalization and the Challenges of Indonesia’s Management of the Bureaucracy “International administration, even when it is aligned with the wishes of the people concerned, is almost always imposed from outside”(David Harland)

avadtechnologies.com

ment which make both domestic and international accords become more flexible, not too binding with regards to many of the state’s non-political issues.

At this point, the demand for full competence on international administration and bureaucracy in this globalization era becomes higher because it will affect the effectiveness level that can be applied in various local, national and global issues. The administration competence is also related with the quality of good public governance which carries 8 (eight) characteristics, namely: participatory, consensus, accountability, transparancy, responsiveness, effectiveness and efficiency, equitability and compliance with the law.

Secondly, the lack of or absence of competence in bureaucracy will only lead to three types of malgovernance, namely bad governance, weak governance and underdeveloped global governance. The three malgovernances which are marked by weak national leadership and lack of austerity will only result in various multidimensional problems in the local, national and international level. That’s exactly what Indonesia is facing right now in its national development management.

By Anak Agung Banyu Perwita

T

he sentence above shows that there are international (globalization) roles in the public administration management of a country. International intervention, in this case international administration, is often unpreventable in domestic lives. This is because a wide range of issues, processes and actors involved in the administration/bureaucracy have international dimensions.

The question now is how a country with its administration capacity can maintain its integrity and sovereignty in managing its bureaucracy to achieve its national development agenda.

Domestification and internationalization process will play bigger roles in the government’s management in the era of globalization in which traditional borders of a country will become more and more blurred. One of the impacts that we will encounter from such a process is growing demand for better transparency, accountability and professionalism in dealing with both national and international issues. Our unwillingness and incapability in managing nation-

al development matters professionally will only open the door to foreign intervention, either by countries that have signed certain accords and those that have not. These are already reflected in a wide range of development problems, especially in the management of the domestic natural resources.

There are at least three crucial points related to the actors involved in our bureaucracy management. First of all, the country actors are the most important actors in the administration and bureaucracy management. Sec-

ondly, the specific inter-governmental actors such as the World Bank, IMF and others. Thirdly, multinational actors such as multinational companies. Based on the explanations above, there are at least two consequences that we need to know and understand about international administration development.

quires an understanding about countries’ needs for coordination cooperation pattern among state bureaucratic institutions.

On the other hand, this model also refers to the interaction patterns between the state actors and non-state actors in providing public policies and services.

In this context, the term commonly used to explain the interaction pattern between state and non-state actors is informal international administration and bureaucracy. This concept refers to administration and bureaucracy regulations and manage-

First of all, pragmatism, the necessity to understand what international administration and bureaucracy is in order to understand the “relational state model”. On one hand, this model re-

The lack of or absence of competence in bureaucracy will only lead to three types of malgovernance, namely bad governance, weak governance and underdeveloped global governance.

ENGLISH EDITION

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Interview MERRY RIANA:

Dare to Dream Big with Integrity to Achieve It! ‘Dare to dream big’ is a slogan that makes Merry Riana able to achieve success as a writer, entrepreneur and motivator. She believes that everyone deserves to achieve tremendous success in life as long as they believe in it.

M

erry Riana, who was born in Jakarta, on May 29, 1980, started her dream about the future when she was in college. In 1998, Merry took a study loan and enrolled as an Electrical and Electronics Engineering (EEE) student in Nanyang Technological University (NTU).

She realized that her parents still have to work hard to pay for their children’s education. In fact, the study loan was enough to get by but nothing beyond. Very often, she found herself skimming and saving in order to pay for her textbooks, accommodation, food and other living expenses. It was not too long before she realized she was facing the bleak prospect of being S$40,000 in debt upon graduating. That really set her seriously thinking about her future.

“If I were to be successful one day, I want to achieve it while I am still young, before my 30th birthday, not when I have reached 40 or 50,” she says.

That way, she can invite her parents to enjoy the best food and travel abroad before her parents are constrained by health and old age. At that moment, Merry made a resolution to be successful while she was still young.

“That whole thing is not for me but for my parents,” she says.

Merry is now developing a business in the field of financial consultancy, motivational seminars and so on. She also published bestselling books, and became the ambassador of Ikea, Watsons, Canon, and LG for Asia. Above all, Merry is a good wife to her husband Alva, and a loving mother to her kids, Alvernia and Alavrez.

Now, as her big dreams are coming true, she continues to spread her success story to inspire young people to dare to dream big and take actions to achieve it. Here are excerpts from an interview by Indonesian Industry Magazine with Merry Riana.

What is the meaning of success to you?

I believe that a person’s success is not measured by how much money he or she makes, how expensive their cars are, or how fancy their houses are, but rather of how big impact they can create in the lives of others.

I am grateful and feel very fortunate that I was able to overcome hurdles and obstacles in my life. Now, I am living a life full of happiness that I never imagined I could.

What is the meaning of dreams to you?

It is good for us to have a dream, as I always say, Dare to Dream Big. I believe in the principle of ‘Pay Now and Play Later’. Maybe for youngsters who are currently craving for a dream car, it is better to realize the dream by start saving, work even harder, or taking greater chances, and so on.

So we are not just dreaming, we have to balance it with action to realize the dream.

How important is it for you to create a target to achieve something? What if we have not managed to achieve it on time?

For me, the most important thing is planning. First, we have to prioritize. After determining priorities, we can insert it into our schedule for it to be realized.

I believe something that had

been planned in advance will bring great results.

We also have to have a great vision and the courage to dream big, because that is the starting point of my success. The reason why I mention this is not to make many people amazed by me, but to make them aware that we are all able to achieve tremendous success in this life as long as we believe in ourselves.

“Whatever we can imagine, as long as we believe, we’ll achieve it.”

This sentence has changed my life. And every time I remember it, I get goosebumps because I know that I am living proof of this sentence. I am very grateful to God for His grace.

What are the principles of life that you hold to this day?

I say unequivocally that without faith, we won’t be strong.

Faith is the foundation that controls our emotions and mental toughness. Faith will also keep our motion to always walk in good norms. Faith makes us steadfast and hopeful. Faith enables us to see tomorrow as a wonderful opportunity that God promised. Faith makes us not stop producing good thoughts.

Unshakeable faith is like stick and lantern that is very influential in our steps. Whoever we are, whatever faith we profess, allow God as our partner. Live in gratitude for every small achievement and hope it will lead to bigger opportunities.

Yes, there are rule that must be adhered to in our efforts to reach the top. The golden rule is called integrity. This is something that we should not compromise at any time. Without integrity, there is no solid basis for the foundation of our success. We may be able to build a career from our abilities, but without integrity all of that can be lost overnight.

What exactly is the meaning of failure to you? And how do you rise from failure?

Many people are traumatized by failure. A lot of people are down after they fail, and no longer have the courage to continue with the struggle. The worse is that many people do not dare to act because of fear to fail.

I have to say that there is no success that is not colored by failure. If we fail in pursuing business, it does not mean a dead end. As I said, failure is the hallmark of a successful trip.

With failure, we get a lesson to learn in better ways. The important thing is to move on, fight on, and continue to try.

A lot of failures mean a lot to learn. Keep trying and do not be discouraged. The important thing is we do not make the same mistake twice. From every failure we should able to take lessons as a guide for the next steps. Failure is actually a divine mystery that is made to mold us to be more powerful. Failure also makes us tough when success is already in hand.

What is the role of the family in shaping your personality?

I am grateful because the lifestyle of my parents developed me into a supple girl. I was able to see less-fortunate people as well as established ones. In school, since kindergarten and elementary school, I was playing and making friends with everyone, from the little kid with the nice sedan and driver to the child who is hard-pressed in buying a notebook. I have been able to absorb the reality that not all people live in a reassuring situation.

Some people are not lucky, always living in worry.

Of all your professions, writer, entrepreneur and motivator, I am interested in your profession as a motivator.

What led you to you eventually become a motivator?

Within a period of 10 years, before I celebrate my 40th birthday, I wanted to create a positive impact in the lives of at least 1 million people in Asia, especially in Indonesia.

I really hope that my story will able to inspire many people, because if a person full of flaws like me could really live up to my dreams, then so can others.

Then what made you choose to be a motivator?

My passion is to help people to achieve their personal dreams and goals, and I feel very happy because it has become my main daily activity. When people ask me how I managed to come this far from, I tell them about my personal success formula: Vision-Action-Passion.

Basically, these are the threestep process that starts with having a Vision, which is to determine our goals. Next, we will have to commit ourselves to take Action that will bring us closer to the achievement of the Vision. Finally, we must have the Passion to enjoy the whole process despite many obstacles and failures that we experience. The three steps, coupled with hard work, have allowed me to achieve my dreams and success today.

Are there other ambitions to be realized?

I feel very grateful that I am able to be a writer and a motivator. Although I still do not have my own TV show which could reach millions of viewers, at least through book and seminars I am able to create a positive impact in the lives of thousands of people.

If one day I get my own TV show that will inspire and give postive contribution to society, it is God’s grace to me.

In life, is there any thing that you regret? Something that you will change if you are able to do so?

Absolutely not. Because I believe there are no mistakes in life. All failures, difficulties and problems in the past are the process that made and brought me to the path I am currently going through.

My present is the result of the accumulation of the things I’ve experienced in my past.

What is the most important thing a person should have in pursuing a dream?

Besides taking continuous action and do whatever it takes to achieve what we really want, we also have to know the rules.

Yes, there are rule that must be adhered to in our efforts to reach the top. The golden rule is called integrity. This is something that we should not com-

promise at any time. Without integrity, there is no solid basis for the foundation of our success. We may be able to build a career from our abilities, but without integrity all of that can be lost overnight.

In our endeavors, we have to make sure that whatever we do is good in moral, legal and ethical terms.

Surely it would be easier to achieve success by following the rules of morals, legalities, and ethics rather than ending up in jail, or even worse, facig our guilt.

When we are working hard to reach our dreams everyday, of course we want to be able to go home and sleep soundly. We do not want to be haunted by feelings of guilt for doing something that is contrary to our conscience.

Merry is now developing a business in the field of financial consultancy, motivational seminars and so on. She also published bestselling books, and became the ambassador of Ikea, Watsons, Canon, and LG for Asia.

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International

Indonesia, Vietnam Deepen Cooperation in Legal Field With regard to the South China Sea issue, the two Heads of State expressed their desire to resolve the problem peacefully and without violence.

I

ndonesia and Vietnam agreed to continue to increase cooperation in legal field. This commitment was confirmed through the signing of the Agreement on Extradition and Mutual Legal Assistance in Criminal Matters between Law and Human Rights Minister of the Republic of Indonesia Amir Syamsudin and Vietnamese Foreign Minister Pham Binh Minh following a bilateral meeting, and witnessed by two Heads of State at the Presidential Palace (27/06/2013).

“We are aware that both Vietnam and Indonesia want to cooperate in good faith to combat crime and protect justice prevailing in the two countries, as well

as in the region,” said President Susilo Bambang Yudhoyono at a press conference at the Presidential Palace.

With regard to the South China Sea issue, the two Heads of State expressed their desire to resolve the problem peacefully and without violence. “We agreed that all the problems in the East Sea/South China Sea can be settled in accordance international law and in a peaceful manner,” said SBY. President Yudhoyono also said that both countries are committed to continue what has been agreed at the meeting of the ASEAN-China and will continue to seek the advance of the Dec-

presidenri.go.id/Abror

laration of Conduct of Parties in the South China Sea (DOC) towards the establishment of a Code of Conduct (COC).

According to President Truong Tan Sang, Vietnam itself will continue to support measures that have been initiated by ASEAN in the construction of a better regime in the South China Sea. The tension in the East Sea, he added, should be resolved peacefully, with restraints, and without using threats or violence.

In terms of trade, the President of the Republic of Indonesia promised to continue to increase the value of trade with Vietnam to $5 billion in 2015. This is related to the positive investment climate and trade between the two countries.

Indonesia-Vietnam trade volume in 2012 reached $4.87 billion, a rise from $4.7 billion in

2011. Indonesian investment value in 2012 also showed a significant increase reaching $54.6 million.

On the occasion, both signed an MoU on Agricultural Commodities Cooperation between Minister of Agriculture Suswono and Vietnamese Foreign Minister Pham Binh Minh.

“With Vietnam, Indonesia will deepen and enhance cooperation in the field of food security, especially rice”, said the President of the Republic of Indonesia after the signing of the MoU. The state visit to Indonesia is the first time for President Truong Tan Sang since his inauguration on July 25, 2011.

Bilateral relations between Indonesia and Vietnam have been initiated since 1955 and have become increasingly strengthened with the establishment of comprehensive partnerships in 2003.

The signing of the Agreement on Extradition and Mutual Legal Assistance in Criminal Matters between Law and Human Rights Minister of the Republic of Indonesia Amir Syamsudin and Vietnamese Foreign Minister Pham Binh Minh following a bilateral meeting, and witnessed by two Heads of State at the Presidential Palace (27/06/2013).

kemlu.go.id

Pesta Rakyat 2013 in Netherlands: 100% Local!

Around 7,000 Indonesians living in the Netherlands, Belgium and France as well as Dutch residents were present at the event.

The Indonesian community in the Netherlands and the Indonesian Embassy in The Hague organized “Pesta Rakyat 2013” (Folk Festival) on 7 September 2013 to conclude the series of program in commemoration of the 68th anniversary of Indonesiaat the Indonesian School Netherlands (SIN), Wassenaar.

This year’s theme is 100% LOCAL!!! In line with the theme, it was for the first time that the visitors of Pesta Rakyat were entertained by local artists, who were members of the Indonesian community in the Netherlands. This year’s Pesta Rakyat also presented a special performance by a famous Dutch jazz artist,

Mara Sophie, who sang some of her hits as well as an Indonesian song popularized by Glen Fredly entitled Angels Also Know composed by Dewi Lestari.

The local artists who performed various traditional as well as contemporary art were among others SIN musical & dance group, Sasando music,

Balinese dance and gamelan (traditional musical ensemble) from the Banjar Suka Duka, Sanggar Mirah, as well as several local bands namely, Biroe Band, HenkySupit Band, Night Breakers Band, Marabunta & Melanie Foeh and Challenge Band. In addition to the cultural performance, Pesta Rakyat 2013

also featured a culinary and Indonesian products bazaar, along with various competitions typical of 17th of August for children and adults, and a prize for the best food stall.

Around 7,000 Indonesians living in the Netherlands, Belgium and France as well as Dutch residents were present at the event.

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September 2013 Vol. 2 No. 9

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ASEAN Review 2ND ASEAN DEFENCE MINISTERS MEETING-PLUS

New Experts’ Working Group Look Forward for Humanitarian Mine Issues asean.org

In their second meeting, the Defence Ministers reviewed the remarkable progress of the ADMMPlus’ cooperation in the five priority areas of cooperation, namely humanitarian assistance and disaster relief, maritime security, peacekeeping operations, military medicine, and counterterrorism.

tion among its defence establishments.

The Defence Ministers from ASEAN and the Plus countries gathered in Bandar Seri Begawan on 29 August 2013 to convene the 2nd ADMM-Plus.

The 3rd ADMM-Plus will convene in Malaysia in 2015.

ADMM-Plus Counterterrorism Exercise in Indonesia

T

hree years since its establishment, the ASEAN Defence Ministers Meeting-Plus (ADMMPlus) has cemented its role as a premier venue for strategic dialogue in defence and security issues among ASEAN and its eight Dialogue Partners with practical cooperation constituting the main thrust of the process. This is the second time the ASEAN Defence Ministers met with their counterparts from eight of ASEAN Dialogue Partners, namely Australia, China, Japan, India, Republic of Korea, New Zealand, Russia, and the United States.

In their second meeting, the Defence Ministers reviewed the remarkable progress of the ADMM-Plus’ cooperation in the five priority areas of cooperation, namely humanitarian assistance and disaster relief, mari-

The Opening Ceremony of the 2nd ADMM-Plus at Bandar Seri Begawan, Brunei Darussalam on August 29, 2013. time security, peacekeeping operations, military medicine, and counterterrorism. These five areas were decided as practical cooperation on the inaugural of ADMM-Plus which was convened in Ha Noi, Viet Nam, on 12 October 2010.

Continuing the path for practical cooperation, the Ministers discussed proposals to deepen cooperation. The discussion also touched on new areas of cooperation under the five priority areas as the first five ADMM-Plus

Experts’ Working Group will begin their new cycle of work next year. Beginning from next year, the ADMM-Plus will also look into the issue of humanitarian mine actions. A new ADMMPlus Experts’ Working Group on Humanitarian Mine Actions has been established to promote practical and effective cooperation in dealing with consequences of explosive remnants of war in the region.

The ADMM-Plus has brought together militaries of the eigh-

teen nations to enhance their networks in a multilateral diplomatic setting and provided them with opportunities to develop capabilities to collaborate with their regional partners through joint exercises.

This year is an eventful year for the ADMM-Plus as they have four key exercises to their recognition. The very first ADMMPlus Humanitarian Assistance and Military Medicine Exercise was held in Brunei Darussalam in June this year, involving the

full participation of the ADMMPlus countries.

The ADMM-Plus Counterterrorism Exercise (CTX) was conducted in mid-September in Indonesia, the Maritime Security Field Training Exercise (MS FTX) at the end of September in Australia, and the peacekeeping table-top exercise later this year in the Philippines.

The Ministers also discussed the ways and means the defence sector can contribute to addressing the new and emerging non-

traditional security issues such as cyber security, bioterrorism, transnational trafficking, and pandemic diseases and agreed that the defence establishment must play a strong supportive role to their civilian law enforcement counterparts.

The ADMM-Plus is a key component of a robust, effective, open and inclusive regional security architecture that enhances friendship, mutual trust and confidence through regular dialogue and practical coopera-

The 2nd ADMM-Plus meeting also decided to support the first ADMM-Plus Counterterrorism Exercise at the Indonesian Peace and Security Center (IPSC) in Sentul, Bogor, Indonesia in 9-13 September 2013. The joint exercise is to fulfill the commitment of the ADMM-Plus Defence Ministers to undertake practical cooperation in combating the regional threat of terrorism.

They acknowledge that such activities build closer ties among defense institutions based on trust, understanding and transparency, while strengthening regional capabilities in fighting terrorism.

The exercise was participated by 872 personnel from 18 ADMM-Plus countries. The event was opened by Military (TNI) Chief Gen.Moeldoko and U.S. Ambassador to ASEAN and Co-Chair, David Carden.

Training materials implemented include Table Top Exercise (TTX), Practical Exercise (PE), discussions and Case ExercisePractice led by Maj. Gen. AgusSutomo and Deputy Director of Danpasmar-2 Brigadier General (Mar) BuyungLalana.

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Law & Regulation

State Support in GovernmentPrivate Sector Projects The Masterplan for the Acceleration of Indonesia’s Economic Development (MP3EI) clearly stated that PPP is needed in Indonesia’s development. The main reason is the government’s limited financial ability while such infrastructure projects are much needed by the public.

The fund should only serve as assistance and the project should mostly be covered by the private sector in order to maintain the PPP principle.

Hopefully, with the issuance of PMK 223/2012, more and more infrastructure projects can be built under the PPP scheme.

By Paulus Khierawan

P

PP (Public-Private Partnership) is one of the topics often discussed by circles both in the government and private sectors. The Masterplan for the Acceleration of Indonesia’s Economic Development (MP3EI) clearly stated that PPP is needed in Indonesia’s development. So, what does cooperation between the government and private sector really mean?

In general, PPP can be translated as cooperation between the government and the private sector which covers various activities. However, Presidential Instruction No 67/2005, which has been revised twice, stated that PPP can only involve infrastructure projects. So, why does the government need the private sector to get involved in infrastructure projects?

The main reason is the government’s limited financial ability while such infrastructure projects are much needed by the public. Aside from those factors, the private sector is also considered better in terms of operations and maintenance and thus it is expected that the public can

Presidential Instruction No 67/2005, which has been revised twice, stated that PPP can only involve infrastructure projects.

get better services from the PPP scheme.

The obstacle in such cooperation lies in the difference of interests between the government and the private sector. The government’s interests are to develop infrastructure, provide public services, while the private sector is focusing more on profits.

That’s why a win-win solution in the PPP projects are needed. PPP projects should be both economic and financially worthy. For instance, the development of toll

road projects in which the government gets some help to develop it while the private sector could also make some profits from the toll fee they charge on users.

The cooperation between the government and private sector seemed simple, but it’s not. The government had to cap the tariff charged by the private sector to protect the public’s interest. Such policy can be seen in clean water, train projects and others. If the tariffs are capped,

would the projects still be attractive for the private sectors? Such problem remains a problem in PPP projects until now which often stalled PPP projects in Indonesia.

The government realizes that such problem has made PPP projects become unattractive. Therefore the government through the finance ministry came up with a breakthrough, for instance with the issuance of Ministerial Decree No. 223/2012 (PMK 223/2012) on Viability

Gap Fund (VGF). Based on PMK 223/2012, the finance ministry can roll out funds to cover some of the construction costs.

The funds will come in the form of cash and disbursed to the company. Such policy is a breakthrough in which the government can roll out funds straight to the private sector. Surely, not all PPP projects can get the VGF facility because there are certain requirements that need to be met, such as that the project must at least be worth Rp100

billion. However, PMK 223/2012 does not say how much the government can chip in at the maximum, which is different compared to India, which limits it to 40% of the total costs.

The fund should only serve as assistance and the project should mostly be covered by the private sector in order to maintain the PPP principle. Hopefully, with the issuance of PMK 223/2012, more and more infrastructure projects can be built under the PPP scheme.

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September 2013 Vol. 2 No. 9

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Property

A Look at the Development of Industrial Estates in Indonesia DOC. JABABEKA

Demand growth for industrial areas goes in line with the excessive conversion of agricultural land which is the result of the need to build industrial locations and residences for the workers.

By Andri Marsetianto

T

he international rating agency Rating and Investment Information Inc (R&I) upgraded Indonesia’s sovereign credit rating to BBB- (stable outlook) at the end of 2012. It was the third rating obtained by Indonesia after Fitch and Moody’s.

R&I stated that lower unemployment rate, coupled with higher income per capita, stable inflation rate and a relatively low interest rate, caused private consumptions to rise—the main growth accelerators. Higher confidence on Indonesia’s economy also bolstered foreign investments and improved the sustainable investment climate, thanks to the country’s political stability.

Such condition will increase foreign investments, especially in supporting the manufacturing businesses so that demand for industrial land would continue to grow amid limited land availability. In 2012, BI data showed that an increase in request for additional industrial land lease in Jabobeka areas (Jakarta, Bogor, Bekasi, and Karawang)

went slightly higher compared to supply growth. On average, demand in 2012 for industrial land reached 194 hectares. The quarterly sales increase reached 77.50% from 75.03% in the previous quarter. Construction expansions of plantation factories were bigger than the plant constructions in the pharmaceutical, automotive, electronic, construction materials, paper and steel sectors.

The limited land availability as opposed to land demand both for purchase and lease had caused prices to rise by 7% and 6% for land purchase and lease respectively when compared to the same quarter in the previous year. However, Jakarta administration’s policy to raise the regional minimum wage by 44% from the year before could slow down business expansions especially for companies in the laborintensive industries.

To date, there are 64 industrial zones in Indonesia that have operated since the Jakarta Industrial Estate Pulo Gadung (JIEP) was opened in 1973, followed by Surabaya Industrial Estate Rungkut (SIER) in 1974, Cilacap Industrial Estate (1974), Medan Industrial Estate (1975), Makassar Industrial Es-

In 2012, BI data showed that an increase in request for additional industrial land lease in Jabobeka areas (Jakarta, Bogor, Bekasi, and Karawang) went slightly higher compared to supply growth.

JABABEKA INDUSTRIAL ESTATE. Dirdjojuwono (2004) defined industrial areas as an area dominated by industrial activities equipped with combined facilities, which make up industrial plants, research and development labs, office buildings, banks, and social and public facilities. tate (1978), Cirebon Industrial Estate (1984), Lampung Industrial Estate (1986) and later followed by other industrial areas such as the Cikarang Industrial Estate, Jababeka Industrial Estate, Cikande Industrial Estate, Karawang Industrial Estate, and others.

Dirdjojuwono (2004) defined industrial areas as an area dominated by industrial activities equipped with combined facilities, which make up industrial plants, research and development labs, office buildings, banks, and social and public facilities. Government Regulation

No. 24/2009 stated that the aim to build industrial estates are as follow (a) to control spatial use; (b) to bolster eco-friendly industrial development; (c) to accelerate industrial growth in the regions; (d) to improve industrial competitiveness; (e) to improve investment competitiveness; and

(f) to provide location certainty in planning and developing infrastructure, under the coordination of the related sectors.

Soeling (2007) said that an economic growth of one percent could provide jobs for around one hundred thousand people.

Demand growth for industri-

al areas goes in line with the excessive conversion of agricultural land which is the result of the need to build industrial locations and residences for the workers.

To overcome such problem, Article 4 under Presidential Decree No. 41/1996 stated that development of industrial areas should not reduce the land for agriculture. That’s why it was predicted that development of new industrial areas will likely move to East Java and Central Java, especially those related to the development of plants for textile, garment, shoes and furniture industries.

Aside from the availability of land areas, purchase and leasing prices are also still relatively affordable, which will make workers’ wages become more competitive and living expenses there also lower.

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Education

Minister of Health: Have a Heart to Serve

T

The Minister, who was appointed at the age of 72, has a great passion for Indonesian people’s health, especially to combat HIV/AIDS and women’s health.

She also encouraged students to be the generation who is not afraid to serve the less-fortunate people.

“You learn not only to have a college degree, but to have a heart to serve,” she said, citing the Rector’s statement in the opening.

At the end of her speech the Minister gave five tips for success: never stop learning, give selflessly to others, take advantage of every opportunity, do not be quick to complain, and do not

In their presentation, the President University student team consisting of Riany Amelia, MedyanaJuniarti and RiantySetiawati recognized the potential of Cikarang Dry Port to be an innovative milestone to improve productivity and increase the efficiency for businesses in Indonesia.

Health Minister Nafsiah Mboi gave an inspirational speech before 2,500 new students.

Health Minister Nafsiah Mboi and UPH Rector Dr. (Hon) Jonathan L. Parapak, M.Eng.Sc.

let others limit your dreams.

“And lastly, pray because God loves you,” she concluded.

Besides the Health Minister, Sandiaga Uno, a successful entrepreneur, was also presented as a speaker. According to him, in order to reach a higher stage, it is not enough with words but also intention. After having the intention, he says, the next thing to do is to dream.

“I dreamed about myself in the next 10 or 15 years, whether that dream could be realized is another thing,” he says.

He also explained that besides education and knowledge, character building is also vital. The process to build a character is a lifelong.

Uno said that in order to achieve something higher one must have extensive knowledge, sensitive to the environment, do not be complacent and have a winning attitude - the attitude of a winner. His explanation is based on his personal experience that ultimately made him a successful businessman.

At the end of the lecture, he gives the“4 As” a person shpuld have, namely: kerja kerAs (work hard), kerja cerdAs (work smart), kerja ikhlAs (work sincerely), and kerja tuntAs (work totally).

The last distinguished guest speaker was Agus Yudhoyono, who called on the students to implement a culture of excellence, to always want to be the best in good ways, and be smart to see opportunities.

“Moreover, to become a developed person, we must be able to

Sandiaga Uno (second left) dan Agus Yudhoyono (second right.

adapt to uncertainties. Remember, we live in an era of uncertainties; the 21st century is full of changes and uncertainties.

Let’s be adaptive in order to deal with it,” he says.

To be a better person, he says, one must be willing to get out of the comfort zone to grow. According to Susilo Bambang Yudhoyono’s son, we also should be able to turn challenges into opportunities.

“And lastly, we must have leadership values, which is visionary - able to see far into the future but also able to do small things right now,” he concluded.

Airlangga University Lecturer Obtained PhD in Nantotechnology in Bulgaria kemlu.go.id

Andi Zaidan, a 30-year-old lecturer from Airlangga University, has earned a Doctorate (PhD) degree in Nanotechnology from the University of Chemical Technology and Metallurgy Sofia, Bulgaria, after successfully defending his dissertation at the Doctoral Defense on 4 September 2013 at 13:00. The doctorate dissertation is entitled “Thin Chalcogenide Film for Optoelectronics” and lasted about two hours before five professors from various leading universities in Bulgaria.

The research conducted for the dissertation of Andi Zaidan is very interesting, as it is related to storage media such as a flash drive that has much more sophisticated features with data writing/reading speed 100 times faster, and is made of glass. According to Andi Zaidan, another interesting application of this material is that it can be used as photonic chips which constitute an embryo of the new generation of internet. With photonic chips, internet used at home, in theory, can be hundreds times faster.

“We can imagine what we can do if we have low-priced internet with a speed of 100 Mb/second,” Zaidan said.

The research was conducted

by Andi Zaidan for three years under the Erasmus Mundus scholarship program at the University of Chemical Technology and Metallurgy Sofia. Accord-

president.ac.id

DOC. UPH

Minister Mboi spoke on five important phases in her life that can inspire new students.

She emphasized the importance of having a heart in work. he University of Pelita Harapan (UPH) once again held a UPH Festival to welcome new students. The UPH Festival is a yearly event that brings together distinguished speakers who are experts in their respective field, such as ministers, community leaders and entrepreneurs, to provide motivation and insight to new students. This year the UPH invited Health Minister Nafsiah Mboi, who gave an inspirational speech before 2,500 new students.

Minister Mboi spoke on five important phases in her life that can inspire new students. She emphasized the importance of having a heart in work. “Real happiness can be experienced when serving the poor and the needy,” she says.

She also shared her passion for learning at Harvard University. She also praised the spirit for learning that she got from her mother by reading books in English and Dutch, which enabled her to master the languages to communicate in the international world.

Indonesian Students Win in Asia Pacific Supply Chain Competition

The research conducted for the dissertation of Andi Zaidan is very interesting, as it is related to storage media such as a flash drive that has much more sophisticated features with data writing/reading speed 100 times faster, and is made of glass.

ing to him, this material can be applied for military, industrial, automotive, medical, environmental and telecommunication uses.

In 2006-2010, Zaidan, a lecturer at the Department of Physics of Airlangga University, conducted a research in the photon laboratory with Febdian Rusydi, who is currently studying for a doctorate at the University of Osaka, Japan. In the photon lab Zaidan and his team ac-

tively conducted research in the field of nanotechnology for medical applications aimed to make treatment for cancer less expensive.

Zaidan with his team developed a nanoparticle that has a smart sensor to track cancer cells and then “burn” them. The cost of making these nanoparticles is very low, so it is expected to be one of the new alternative cancer treatments that is cheap and effective in the future.

Students from the President University won 2nd runner-up (third place) at the Asia Pacific Supply Chain Management Challenge (AP-SCMC) 2013 held in Singapore 4-5 September 2013. The theme presented was “Cikarang Dry Port as Solution of Logistics Problem in Indonesia,” which received appreciation from many Supply Chain Professionals in Asia Pacific who attended the event.

The Supply Chain Asia Forum 2013 was held in conjunction with the competition. AP-SCMC 2013 was followed by 10 finalists from six countries, namely Singapore, Malaysia, Vietnam, Taiwan, the Philippines and Indonesia. The Philippine delegation came out as first winner.

In their presentation, the President University student team consisting of Ri-

any Amelia, MedyanaJuniarti and RiantySetiawati recognized the potential of Cikarang Dry Port to be an innovative milestone to improve productivity and increase the efficiency for businesses in Indonesia.

The problems they face are current limitations of sea port and higher dwelling time, insufficient infrastructure and uncertain delivery time. With the concept of Inland Port, the team believes that the Cikarang Dry Port could provide more value to existing logistic conditions in Indonesia.

AP-SCMC is designed for final year students as part of the effort to bring supply chain companies closer to innovative projects in the countries concerned. In addition, the program aims to foster innovation culture among students, especially in logistics and supply chain field. (MAC)

The President Post

BUSINESS

SECTION B September 2013 Vol. 2 No. 9 www.thepresidentpost.com

who looks into the design, development, sales, and marketing for Crown Group.

BUSINESS BRIEFS

Bakrie Telecom Operating Profit in H1 Rp 101b

Crown Group Invests Rp 100t in Jakarta Publicly traded lender PT Bank Danamon Indonesia reported a slight 1 Crown Group, a property holding company based in Sydney, Australia, has invested 100 trillion rupiah in Jakarta.

At a press conference in Jakarta Convention Centre (JCC) on Tuesday, the CEO of Crown Group Iwan Sunito said the company would invest gradually. One of Crown Group`s projects is expected to commence by the end of this year.

“It`s going to be big, and we`ll let you know the details once the time is right,” he commented on Crown Group`s 100 trillion rupiah investment in Indonesia. “There are currently four negotiation projects with Crown Group`s partner,” he said.

Iwan Sunito, from Surabaya, East Java, is an entrepreneur with specialization in property development in Australia. He came back to Indonesia to participate in the Congress of Indonesian Diaspora II, held in Jakarta from August 18 to 20, 2013. Regarding his investments in Jakarta, Iwan said Jakarta market is booming.

Iwan is one of Australia`s most experienced property professionals,

Publicly traded cellular phone operator PT Bakrie Telecom Tbk. (BTEL) said it has succeeded in improving performance recording operating profit in the first half of the year.

The company recorded Rp101 billion in operating profit in the JanuaryJune period this year as against loss of Rp287 billion in the same period last year. The company succeeded in cutting its operating cost by 28 percent to Rp1 trillion from Rp1.4 trillion, its finance director Bachder Bachtarudin said here on Wednesday.

The decline in operating cost contributed to an increase in earning before tax, interest, depreciation and amortization (EBITDA) from Rp442 billion to Rp531 billion or an increase of 20 percent. “Foreign exchange loss, financial cost and depreciation resulted in a net loss of Rp293 billion,” Bachder said.

He said the loss was much smaller than Rp750 billion recorded in the same period last year. He said the performance of the subsidiary of the Bakrie Group has continued to improve after the revitalization launched by the company.

The process of revitalization and efficiency launched by the company has been up to expectation , marked with the increase in EBITDA, he said.

Indosat Reports 14.2 Percent Income Rise in First Half Cellular phone operator Indosat reported a 14.2 percent increase in operating income to Rp11.7 trillion in the first half of the year compared with the same period last year.

The company also recorded a 9.6 percent increase in earning before tax, interest, depreciation and amortization (EBTIDA) to Rp5,311 billion with a margin of 45.4 percent, its president Alexander Rusli said here on Friday.

Operating cost rose 18.9 percent mainly because of an increase in telecommunication service cost, depreciation and amortization and general administration cost, Alexander said.

A cut in marketing cost, however, offset part of the increase in the operating cost, he said. Income from cellular phone, fixed data and fixed telephone operations respectively contributed 82 percent, 14 percent and 4 percent to consolidated business income of the company, he said.

He said the company suffered an increase of 28.1 percent in net loss to Rp42.5 in the first half of 2013 from Rp33.2 in the first semester of 2012. Increase in net loss was caused by an increase in telecommunication service cost. “We have invested in modernization of network and developed data service capacity. We are still confident with our targets this year,” he said.

Pertamina Offers Projects For International Bidding State-owned oil and gas company PT Pertamina plans to offer two refinery construction projects for international bidding, said president director Karen Agustiawan on Wednesday.

S

he said through the open tender, she hopes to get the lowest fiscal incentive request. “Any party could participate in the tender, including investors from Kuwait and Saudi Arabia,” she said.

She added that although the project would be offered for bidding cooperation for refinery construction with Kuwait Petroleum Corporation and Saudi Aramco Asia Company Ltd. would remain. “It is not cancelled. But, later if the tender is opened, they may participate. It is not6 limited,” she said.

Karen said the last refinery

Pertamina built and operated in 1994 is located in Balongan, Indramayu, West Java. So far the old refineries have been processing sweet crude while most of crude now are sour crude which has high sulfur content and “therefore we have been beaten in competition against foreign refineries,” she said.

She hoped the development of new refineries would increase competitiveness.

Pertamina plans to build two new refineries each with a capacity of producing 300,00 barrels of oil per day and it has cooperated with KPC and Saudi Aramco for it.

The KPC has so far asked for an incentive but the finance ministry has rejected the request because it is considered too much.

KPC plans to build a new refinery in Balongan while Saudi Aramco in Tuban, East Java.

The Balongan refinery is expected to produce 9.6 million kiloliters of fuel oil while the refinery in Tuban 8.29 million kiloliters.

Besides the two new refineries the government also plans to

build refineries that would be financed using the national budget. Right now, Pertamina has six refineries that process 1.031 million barrels of crude a day.

The six refineries are located in Dumai, Riau, Sumatra with a production capacity of 170,000 barrels a day, in Plaju, South Sumatra with a capacity of 118,000 barrels a day, in Cilacap, Central Java with a capacity of 348,000 barrels a day, in Balikpapan, East Kalimantan, 260,000 barrels a day, in Balongan, West Java, with a capacity of 260,000 barrels a day and in Kasim, West Papua, with a capacity of 10,000 barrels a day.

The refineries altogether produce 40.6 million kiloliters of fuel oils per day.

Pertamina starts development of $152 million gas project PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) will start work to develop the GG gas field in the Java Sea with an investment of $152 million (Rp1.67 trillion).

General Manager of the subsatunegeri.com

Pertamina plans to build two new refineries each with a capacity of producing 300,00 barrels of oil per day and it has cooperated with KPC and Saudi Aramco for it.

Bridgestone to Sign Contract With Rubber Farmers PT Bridgestone Sumatra Rubber Estate said it plans to promote cooperation with rubber farmers by having trading contracts with them.

The company will buy latex from the farmers at a prevailing price in the market under a transparent contract, company`s president Togar Simanjuntak said here on Wednesday.

Togar said the company already developed cooperation with rubber farmers in North Sumatra and other regions in the country by buying their latex and offering them training and seedlings. “If the cooperation would be promoted to a

more concrete form under contract it would be a stronger partnership,” he said.

He said since starting operation in 2005, Bridgestone has distributed around one million high quality rubber seedlings among farmers to increase their productivity.

Currently the farmers` productivity is still relatively low, less than a million tons of latex per hectare on the average, he said. Edy Irwansyah, the executive secretary of the North Sumatra branch of the Indonesian Association of Rubber Companies (Gapkindo), said low pro-

ductivity had been a drag in the development of rubber industry in the region.

Edy also said declining trend of rubber price has discouraged farmers from continuing to properly tend their crop. The price is still far below the level considered ideal at $3 per kilogram for the type of SIR 20.

On Tuesday, SIR 20 closed at $2,387 per kilogram at Singapore market for September delivery, he said. The price fell again to $2,353 per kg for delivery in October this year, he said. “The price has to go up in order to encourage the farmers to boost their production,” he said.

sidiary of state oil and gas company PT Pertamina, Jonly Sinulingga said he had signed an engineering, procurement, construction and installation (EPCI) contract to mark the start of work. “The signing took place this monring,” Jonly said here on Thursday.

Jonly said the offshore GG

gas project, located 30 kilometers north Cirebon , West Java, includes construction of an offshore rig and an onshore processing facility (OPF) in Balongan, to be linked with a 35 kilometer undersea pipe. “The GG field with three wells are expected to produce around 30 MMSCFD of gas,” he said.

After being processed at the OPF, the gas would be processed further by Pertamina to turn out liquefied petroleum gas (LPG).

The Balongan OPF will add to three onshore gas receiving facilities of PHE ONWJ - one each in Muara Karang, Tanjung Priok, and Cilamaya. PHE ONWJ is the operator of ONWJ block over

a concession of 8,300 sq. kilometers in the Java Sea extending between the sea off Cirebon and the Thousand Island off Jakarta.

Its production facilities include 670 wells, 170 offshore oil/ gas rigs, 40 units of processing facility and around 1,600 kilometers of undersea pipelines.

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Business Cement Business on the Rise National cement sales grew 7.5 percent in the first half of 2013 to 27.83 million tons compared to 25.89 million tons in the same period last year.

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ement company PT Semen Padang said construction of its sixth factory, Indarung VI, will start by the end of 2013.

The new production unit will increase the company`s production capacity to meet growing demand for cement, Munadi Arifin, the president of the subsidiary of state cement producer PT Gresik, said here on Tuesday. “Groundbreaking ceremony will take place soon for the Rp3.5 trillion project,” Munadi said.

He said currently PT Semen Padang has a production capacity of 6.5 million tons, not enough to meet the market demand. Indarung VI will have a production capacity of 3.5 million tons a year bringing the company`s total production capacity to 10.5 million tons, he said.

State cement maker PT Semen Indonesia Tbk (SMGR) posted a net profit of Rp2.58 trillion in the first half of this year, up 22.9 percent from the same period last year.

The new factory will also means new jobs to ease unemployment problem and help boost economic growth in the region, he said. The factory will open new jobs for around 200 workers, he added.

Earlier in mid June, a ground breaking ceremony already took place to mark the start of con-

struction a cement mill of PT Semen Padang in Dumai, Riau with a capacity of 900,000 tons a year.

Semen Indonesia`s profit up 22.9 percent in H1 State cement maker PT Semen Indonesia Tbk (SMGR) posted a net profit of Rp2.58 trillion

in the first half of this year, up 22.9 percent from the same period last year.

The profit was fueled by rising income which jumped 31.9 percent to Rp11.4 trillion from Rp8.6 trillion, PT Semen Indonesia President Director Dwi Soetjipto said in a press statement released on Monday. The

company`s cement sales rose 18.3 percent to 12.23 million tons from 10.32 million tons, he said.

Meanwhile, national cement sales grew 7.5 percent in the first half of 2013 to 27.83 million tons compared to 25.89 million tons in the same period last year.

“The increase in Semen Indonesia`s sales which exceeded industrial growth resulted from the operation of its plants Tuban IV and Tonasa V and the ever increasingly solid synergy particularly in the marketing and distribution of its products within Semen Indonesia Group,” he said.

PT Semen Indonesia held a 43.6 percent share of the domestic cement market in the first half of 2013 compared to 40.9 percent in the same period last year, he said.

He said domestic sales contributed Rp10.91 trillion or 95.53 percent of the company`s overall income in the first semester of 2013, a 26.42 percent increase compared to the same period last year.

State Firm to Buy Cattle Ranch in Australia State Enterprises Minister Dahlan Iskan said he will soon appoint a state firm to buy 1 million hectares of land in Australia to develop cattle ranch.

“Right now two state-owned companies, PT Pupuk Indonesia and PT Rajawali Nusantara Indonesia (RNI) are still competing with one another to realize the

plan. We will decide to choose one of them next week,” he said here on Wednesday.

The plan must be realized soon to address medium-and longterm beef problems in the country, he said. Dahlan earlier came up with an idea of appointing a state firm to buy land in Australia to develop cattle ranch.

The cattle ranch will produce calves to be raised in Indonesia.

Three state firms, namely state logistics board (Bulog), fertilizer company PT Pupuk Indonesia and plantation company RNI had agreed to form a consortium to develop the cattle ranch. But Dahlan decided to choose one of them on the ground it would

take long time if three of them joined to develop it due to bureaucratic issues at each of the companies.

In the long run, the purchase of 1 million hectares of land is intended to stabilize beef price in Indonesia which currently reaches Rp90,000-Rp100,000

a kg. The project will cost an estimated Rp300 billion, excluding funds to buy calves. RNI President Director Ismed Hasan Putro said his company was ready to expand its business in Australia if it received a permit from the state enterprises ministry.

Astra Reports Lower Net Income Publicly traded widely diversified corporation PT Astra International reported a 9 percent decline net profit year-on-year in the first half of the year.

The country`s largest automotive company posted Rp8.8 trillion in net profit in the first six months of the year, down from Rp9.7 trillion in the same period last year.

“The subsidiaries of the company showed a decline in performance in the first six months of 2013,” company`s president Prijono Sugiarto said in a news release published here on Tuesday.

The company`s income fell 2 percent to Rp94.3 trillion from Rp95.9 trillion, Prijono said.

“Though the prospect of domestic demand remain positive, sharper competition in car market, an increase in labor cost and falling commodity prices are expected to continue to impact the

company`s performance in the second half of the year,” he said.

He said the core business of the Astra group will continue in six business areas -- automotive, financial service, heavy equipment, and mining, agribusiness, infrastructure and information technology.

Among the divisions recording a decline in net profit in the first half of the year are automotive division with profit down 10 percent to Rp4.4 trillion, heavy equipment and mining division down 24 percent to Rp1.4 trillion, agribusiness down 25 percent to Rp571 billion, and infrastructure and logistic division down 29 percent to Rp223 billion.

Those recording an increase in net profit included financial service division with profit up 19 percent to Rp2.1 trillion, and information and technology up 2 percent to Rp55 billion.

BRI Credits Rise by 28.5 Percent Publicly traded state-owned lender PT Bank Rakyat Indonesia reported a 28.5 percent increase in outstanding credit to Rp391.77 trillion by the end of June, 2013 from Rp304.81 trillion a year earlier.

Despite the high increase in credit, the country`s second largest bank in asset recorded a decline in its non performing loan to 0.41 percent from 0.55% a year earlier.

The bank`s business director Djarot Kusumayakti attributed the decline in NPL to credit quality maintained by the bank. Djarot said credits for micro businesses had continued to climb, rising 26.4 percent to Rp122.08 trillion by June from a year earlier.

He said long experience dealing with small businesses gave BRI good knowledge of the characteristics of micro businesses allowing to properly maintain credit quality as reflected by the decline in NPL. “The growth of BRI`s micro credits resulted in not only an increase in outstanding credit but also an increase in the number of clientele among micro-businesses,” he said.

By the end of June 2013, the number of BRI`s micro borrowers reached 5.9 million people.

Djarot said the bank will; continue to rely on micro, small and medium business in its credit expansion. “Micro, small and medium scale businesses accounted for 73.2 percent of its total credits,” he said.

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September 2013 Vol. 2 No. 9

B3

Investment Merpati Hails Govt Decision to Seek Investors

IHSG: How Low Can You Go?

The management of Merpati Nusantara Airlines has hailed the government`s decision to sell part of the ailing state airline company`s shares to strategic investors.

Merpati supported the decision to invite strategic investors to strengthen its capital, Merpati corporate secretary Herry Saptanto said here on Friday. The decision was the best thing to do both for Merpati and the Indonesian nation, he said.

Oleh Wawan Hendrayana (Research & Investment Analyst)

A

Investors should have a long term investment perspective. After the deep losses in 2008, the IHSG eventually rebounded in 2010.

This means, as long as the economic fundamental is still sound and listed companies are still making profits from their businesses, there are always a chance for a rebound.

lthough an index generally posts positive return, there is always the possibility for “unlucky investors� to incur losses each year if they bought shares at the time when prices were at their highest level and cut losses when prices reached rock bottom. In the past decade, the index has fell 21% on average from their lowest level. In 2008, the IHSG (Indonesian Stock Exchange Index) continued to slide for almost 10 months, while the fastest IHSG rebound occurred in 2004 that went on for 20 days. This year, the IHSG has weakened for 92 days (until 20 August), and for 63 days above its 10-year average.

The figures above may seem terrifying but investors should have a long term investment per-

Composite index Year

MDD (%)

Return (%)

Days

2013*

-19.94

-3.95

92

2012

-13.48

13.32

32

2011

-22.03

2.53

64

2010

-15.39

43.8

25

2009

-12.61

76.32

56

2008

-60.73

-50.38

293

2007

-20.51

49.51

23

2006

-20.53

54.09

34

2005

-16.56

16.16

26

2004

-18.29

41.98

20

2003

-8.68

69.12

22

*ytd until 20 August

Source: www.infovesta.com

turing programs have not run as expected. “Selling shares to strategic investors means inviting them to strengthen Merpati`s capital by buying part of its shares,� he said.

By doing so, Merpati`s capital would increasingly become stronger and the state airline company could improve its performance and increase its fleet, he said.

State Enterprises Minister Dahlan Iskan has given strategic investors until two months to buy Merpati shares. “We give two months to would-be investors to make bids for the shares,� he said after attending a meeting at the Coordinating Ministry for Economic Affairs recently.

Dahlan said the decision to invite strategic investors was aimed at helping salvage Merpati which is burdened by huge debts of up to Rp6 trillion.

The State Enterprises Ministry has many times restructured Merpati by injecting funds to it, reducing the number of its employees, relocating its head office, and restructuring its debts to private creditors through debt-to-equity swap. However, the restruc-

spective. After the deep losses in 2008, the IHSG eventually rebounded in 2010. This means, as long as the economic fundamental is still sound and listed companies are still making profits from their businesses, there are always a chance for a rebound. Corrections of the share prices are actually part of the stock investment that require investors to always be equipped with strategies in order to deal with such circumstances.

Now, how about investing in stock mutual funds (RDS)? The principle of investing in stock mutual funds is that we ask an investment manager (MI) to manage our money. MI would collect some fees for their services to manage the money based

on a fixed percentage. This means that MI would collect fees both when we make profits or when we incur losses. By investing in stock mutual funds, one can expect to see smaller losses compared to the IHSG when the stock markets took a dive.

With the current high volatile stock market, the condition could take a sharp turn at any time. To anticipate such condition, investors can invest in the stock mutual funds which has historically shown smaller loss potential compared to the IHSG. To choose good stock mutual funds based on MDD, one can compare data of MDD RDS with MDD IHSG in past five years.

Freeport Indonesia to Divest 15 pct Stake With the current high volatile stock market, the condition could take a sharp turn at any time.

To anticipate such condition, investors can invest in the stock mutual funds which has historically shown smaller loss potential compared to the IHSG.

Industry minister MS Hidayat said PT Freeport Indonesia, a US company operating large copper and gold mines in Papua, will divest 15 percent of its shares. “They will sell around 10 percent stake, formerly the share of Indocopper, to the government and 5 percent stake to the public,� Hidayat said after a meeting with the leaders of the company here on Friday.

Either the central government, the regional administration or state company will buy the 10 percent stake formerly owned by Indocopper Investama, he said.

Happy investing!

Industry minister MS Hidayat “The government already has almost 10 percent stake (in Freeport Indonesia). The share sales are arranged in its contract of work,� he said. Currently Freeport Indonesia is 9.36 percent owned by the government, with the rest owned by Freeport MacMoran Copper & Gold Corporation.

by

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September 2013 Vol. 2 No. 9

B5

Events Review BREAKFAST DIALOGUE

PLN Maximizes Use of Local Products TPP/Rians Rivco

PLN considers it is important to produce local products because it is useful for the long term. Indonesia cannot rely on import products continuously watch the video at: www.thepresidenttv.com

P

resident Director of PT PLN Tbk Nur Pamudji said that the company plans to maximize the use of local products. “With the exchange rate issue as now, the idea is more relevant. Some time ago PLN still buy equipments from abroad, such as transformers from China, Turkey, and India,” he said.

Meanwhile, production of local products still exists here but they are still not used. Currently, he said, PLN is developing a small-powered power plant up to 20 MW using local capacity. For examples are the turbine from Siemens, which has a factory in Bandung, and the boilers from more than five manu-

facturers in Indonesia, said Nur at the Breakfast Dialogue held at Financial Club.

PLN considers it is important to produce local products because it is useful for the long term. Indonesia cannot rely on import products continuously, he added.

Yet there are certainly some products that still have to be imported because Indonesia has not been able to produce them such as silicon steel (imported from Korea, China, and Japan). However, PLN is willing to change the procurement process to accommodate local products.

“I believe if we increase local products, it will create a huge economic impact and jobs.”

With Indonesia’s rapid economic growth, the growth of the electrical industry will remain robust. “So the ‘cake’ is large enough to be enjoyed by lo-

cal and foreign manufacturers,” said Nur. In addition, PLN manages to increase the number of significant customers. Until now, the number is 51.2 million, up from 49.8 million subscribers at the end of 2012.

PLN is the state owned company as well as the largest power company in Indonesia. From 43 GW of electricity in Indonesia, 32 GW is supplied by PLN, the rest from several private companies.

According to Nur, PLN, which has since 1994 switched its status to a limited liability company (Persero), is strongly supported by the Ministry of Finance and several related ministries such as the Ministry of Energy, SOEs, and others. Price of electricity in Indonesia is still low because operational costs are still fully subsidized by the government.

I believe if we increase local products, it will create a huge economic impact and jobs.”

Nur Pamudji, President Director PT PLN Tbk.

In addition, PLN manages to increase the number of significant customers. Until now, the number is 51.2 million, up from 49.8 million subscribers at the end of 2012.

Thomas from CIMB Niaga asked about the impact of the raise of exchange rate for PLN.

Participants to the Breakfast Dialogue held at the Financial Club Jakarta.

OJK to Increase Contribution of Non-Bank Financial Institutions TPP/Rians Rivco

NBFI shares in the financial system is 22%, lower than in other Asian countries. watch the video at: www.thepresidenttv.com

T

he Financial Services Authority or Otoritas Jasa Keuangan (OJK) is currently facing challenges in improving the contribution of non-bank financial institutions (NBFI) in the country’s financial system.

Chief Commissioner of NBFI and Supervisor of OJK Firdaus Djaelani stated that in 2012, NBFI shares in the financial system is 22%, lower than in other Asian countries. According to him, NBFI shares in the financial system need to be increased to 78% to get a better balance of Indonesia’s financial system.

At a business forum held at the Financial Club Jakarta, Firdaus focuses on the strategy to increase the contribution of the insurance sector, which also dominates consumer complaints.

Separately, OJK Commissioner on Education and Consumer Protection Kusumaningtuti S. Soetiono said that until the end of July 2013, OJK recorded 300 consumer complaints related to disputes between customers and the financial industry. The complaints are mostly related to insurance.

Therefore, Firdaus said that

the OJK will increase education and consumer protection as well as access to the financial sector.

In addition, OJK has tightened the supervision of NBFI companies by requiring them to fill a spreadsheet that will be evaluated by OJK. The evaluation sheet must be filled by the company, including questions related to the risk that

the company will face. “The results will allow us to detect the company’s risks,” said Firdaus.

Firdaus said OJK will conduct analyses ranging from ownership of the company, the management of the business and the level of the business’ risks.

“We’ll analyze everything, the owner, the business and others.

From there, we’ll know the risks’

level,” said Firdaus.

He said level four is categorized as quite dangerous. At that level, OJK will emphasize intensive supervision of the company in order to protect consumers.

OJK, he continued, as the regulator will classify the supervision of insurance companies.

For example, an insurance company with assets above 6 percent

of the national industry total assets can be classified as large insurance companies.

“This grouping rule will be applied in 2014, when the OJK begins full operation and when the banking supervision function has been switched from Bank Indonesia (BI),” he said.

On the same occasion, Nini Sumohandoyo from Pruden-

tial Life Insurance said the company will continue to work with regulators to increase insurance contributions to the national financial system. This is done in line with the increase of company’s professionalism as well as public education on consciousness to have insurance.

September 2013 Vol. 2 No. 9

B6

www.thepresidentpost.com

Events Review

President University Establishes Partnership with National United University of Taiwan TPP/Heros Barasakti

This agreement assures PU alumnis to be able to work in Chinese/Taiwanese companies, both in Indonesia or overseas.

P

resident University (PU) is improving the quality of education by establish cooperation with the National United University of Taiwan (NUUT).

Both universities signed an MoU at the PU Campus, Kota Jababeka, Cikarang, Friday (30/8). The signing was attended

by Rector of President University Chandra Setiawan and Rector of National United University of Taiwan Ming-His Hsu. The founder of PU, SD Darmono, and Representative of Taipei Economic and Trade Office Andrew Hsia were also present at the event.

Chandra Setiawan said, “The purpose of the partnership is to improve the quality of education at PU by adjusting the curriculum, especially in order to strengthen the Faculty of Mechanical Engineering, as well as to improve the standard of students’ abilities so that when they graduate they can work anywhere. To support this partnership PU will add the practice tool facility in the Faculty of Mechanical Engineering.”

He continued that in the cooperation PU also uses Mandarin as the language in teaching and learning activities, with the aim that students can master the Mandarin language. Therefore, this agreement assures PU alumnis to be able to work in Chinese/Taiwanese companies, both in Indonesia or overseas.

Chandra also said, “PU students will be sent to the NUUT to conduct lectures and practice in Taiwan for one semester, with the aim to increase their knowledge and to feel the learning atmosphere there. It is very important to do so.”

It is the fifth collaboration of PU with foreign universities. In this partnership there are five points of cooperation: student exchange, whether active students or who have graduated; teacher exchange; exchange of scientific materials, publications and information; cooperation on conferences and academic programs, and cooperation on research and publication activities.

In the future, PU will also team up again with universities from several countries.

(left to right) Representative of Taipei Economic Trade Office (TETO), Andrew Hsia, Rector of President University Dr. Chandra Setiawan, Rector of National United University Of Taiwan Ming-Hsi Hsu, and founder of President University, SD Darmono.

SKK Migas Gets Reorganized TPP/Heros Barasakti

After experiencing the shock after the chief supreme leader accused of bribery by the KPK, Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) attempts to still have the trust from their partners.

I

n a discussion held

by Oil & Gas Magazine, Elan Biantoro, Head of Public Relations SKK Migas, said that the institution should remain sturdy and shock-resistant.

“Its credibility must be maintained. We proved that despite scandals, the whole institution is not necessarily corrupt,” he said.

For now SKK Migas is focusing on the recruitment of employees. Elan emphasizes that the main factor in recruitment is honesty. “If you want to be rich, do not work in SKK Migas but be businessmen,” he said.

According to him, SKK Migas workers cannot suddenly become rich because of the existing salary scales.

The discussion was also attended by members of the Indonesian Oil and Gas Community (KMI). Elan expects KMI to be a “messenger” of SKK Migas to relevant parties so that they will not be misled by false information.

Besides Elan Biantoro, the speakers in the discussion were Hendra Fadly (Director of Oil and Gas Upstream Business Development) and Darmawan Prasodjo (Migas Observer) with S. Herry Putranto (Executive Chairman of KMI) as moderator.

Widjanarko who previously served as Deputy Head of SKK Migas, now serves as Acting Chairman of SKK Migas replacing Rudi Rubiandini. On

Each supply chain management and oil and gas business must be able to provide an optimum added value to the people. For this reason, SKK Migas proposed improvements, among others, the governance system of oil and gas industry in Indonesia by strengthening the institutionalization and redefining roles of each stakeholder.

10 September, Widjonarko, inaugurated 115 officials as heads of divisions, departments, and sub-departments at SKK Migas Office, Jakarta.

In his speech, Widjonarko emphasized that the change in the organization is expected to produce positive contribution to the upstream oil and gas industry comprehensively. “We are focusing in the enforcement of transparency through improvement in the organization’s governance system,” Widjonarko said.

In his opinion, pursuant to the constitutional mandate, an amendment to the Oil and Gas Law is required in order to straighten oil and gas as nonrenewable strategic mineral resources which constitute a vital buffer of the national energy supply.

Each supply chain management and oil and gas business must be able to provide an optimum added value to the people. For this reason, SKK Migas proposed improvements, among others, the governance system of oil and gas industry in Indonesia by strengthening the institutionalization and redefining roles of each stakeholder. Additionally, it is also necessary to increase the regional revenue and regional participation in upstream oil and gas business activities, and to specifically govern the upstream oil and gas regulations.

Moreover, SKK Migas also supports Pertamina, the stateowned oil and gas enterprise, as the spearhead in exploration and exploitation activities. “We also wish to see petroleum funds available for the security of oil and gas reserves and production in the future,” Widjonarko concluded.

In a discussion held by Oil & Gas Magazine, Elan Biantoro, Head of Public Relations SKK Migas, said that the institution should remain sturdy and shock-resistant. Besides Elan Biantoro, the speakers in the discussion were Hendra Fadly (Director of Oil and Gas Upstream Business Development) and Darmawan Prasodjo (Migas Observer) with S. Herry Putranto (Executive Chairman of KMI) as moderator.

www.thepresidentpost.com

September 2013 Vol. 2 No. 9

B7

Pictorial Events Groundbreaking of The Oscar and Beverly Hills The Jababeka Residence presented the groundbreaking of The Oscar and Beverly Hills in the area of Indonesia Movieland, Kota Jababeka, Cikarang, Wednesday (28/8). The event was attended by President Commissioner of PT Graha Buana Cikarang (GBC) Tanto Kurniawan, Managing Director of GBC Suteja Darmono and General Manager Marketing of GBC Pascal Wilson.

TPP/Heros Barasakti

Japan Matsuri 2013 The Japanese Embassy in Indonesia held Jak-Japan Matsuri 2013 themed “Indonesia-Japan Always Together”. This year’s event is very special because it was the celebration of 55 years of diplomatic relations between Indonesia and Japan. Jak-Japan Matsuri 2013 was also supported by the Provincial Government of Jakarta.

This cultural festival which was held at JS Luwansa Hotel & Convention Center, presented a variety of arts and cultural shows. The festival was for a week 1-8 September and successfully attracted the attention of Jakarta citizens.

TPP/Rians Rivco

Sushi Battle competition in Japan Matsuri 2013.

Tanto Kurniawan said that The Oscar and Beverly Hills are profitable residential investments.

S

uteja Darmono said that the construction of The Oscar and Beverly Hills will be completed within 18 months. “The sales of The Oscar and Beverly Hills phase 1 totalled 20 units. Now we’re selling the next 20 units on phase

2. The Oscar is a 2-story house on a land of 119m2 with a building area of 120 m2. There will be a jogging track and a swimming pool as supporting facilities,” he said.

Both properties are built using the best materials and mod-

Groundbreaking construction of phase 1—The Oscar and Beverly Hills will be completed within 18 months. ern design concepts to meet the high demand of the residents.

This makes The Oscar and Beverly Hills one of the best investments in a very strategic location.

Jababeka Residence is surrounded by potential job oppor-

tunities, thus investors will not be difficult to rent/ resell the property. Currently the value of property investment is increasing up to 30% per year due to the large potential development in that area.

Commercial Selling of Ruko Thamrin Boulevard Phase III

A 75 kg tuna used as material for Sushi Battle held on the opening of Japan Matsuri 2013 (02/09) at JS Luwansa Hotel & Convention Center.

TPP/Heros Barasakti

Visitors and participants of Japan Matsuri 2013.

Indonesia Maritime Expo 2013

TOP: Suteja Damono, Managing Director of PT. Graha Buana Cikarang.

RIGHT: No less than 100 people came to the event and as many as 52 RTB units were sold out.

watch the video at: www.thepresidenttv.com

Jababeka Residence (JR) through PT Graha Buana Cikarang (GBC) launched the third phase of commercial selling of Ruko Thamrin Boulevard (RTB) at Plaza Indonesia, Tuesday (27/8). No less than 100 people came to the event and as many as 52 RTB units were sold out.

The event was attended by President Commissioner of GBC Tanto Kurniawan, Managing Director of GBC Suteja Damono, and GM Marketing of GBC Pascal Wilson.

Suteja Darmono said, “The first phase of RTB selling sold 26 units at the price of Rp 2,3 billion. The second phase offers 26 units. There was an increase of about 2.5% within a week to Rp 2,4 billion. It’s a profitable investment,” he said.

He further said, “The location is very strategic. Thamrin Boulevard is very close to highway access, located in a residential roundabout, and in the middle of next year Plaza Indonesia will be built there.”

In addition to the development of RTB, this year Jababeka Residence is building some new products such as The Oscar, a luxury housing for the upper market located in Hollywood Residence. This housing complex

is constructed to provide luxury and comfort equipped with hightech facilities, reflecting the atmosphere of Hollywood glamor. There is also Beverly Hills, a residential area specifically for homestay.

Jababeka also partnered with PT Plaza Indonesia Realty Tbk to develop Plaza Indonesia @ Jababeka in an area covering 12 ha, comprising mall, hotel, offices and apartment which planned

to be built in 2014. Moreover, Jababeka also developed Convention Center with capacity of 5,000 people which is located near President University.

In the near future, Jababeka Residence will develop Hollywood Circle, the concept of mix used development, complete with international standard facilities, Living World, and Jababeka Office Tower.

The Indonesia Maritime Expo (IME) was held in Jakarta Convention Centre on 5-7 September. The exhibition was held as a showcase for the maritime industry to meet Indonesia’s biggest players, to share discourses and develop the maritime sector.

With the theme “The Gateway to Indonesia’s Rising Maritime Market”, IME 2013 was a good opportunity for Indonesia to show the potential of its maritime sector to other countries. By combining highlevel conference, the exhibitions, and networking event, IME 2013 is an event that provides one-stop market information.

The IME 2013 was also held in conjunction with the 8th Indonesian Conference on Supply Chain & Logistics, thus encouraging synergies and building networks for visitors at both exhibitions.

TPP/Rians Rivco

InterFOOD Indonesia 2013 TPP/Rians Rivco

The Interfood Indonesia 2013 was held at Kemayoran JIExpo 28-31 August 2013. The exhibition is expected to encourage the local food industry to produce quality products to compete in the international market.

This exhibition involved hundreds of participants in the food sector and was supported by GAPMMI, Aptindo, BPOM, FPI, ICA, Kadin Indonesia, ABI, as well as several related associations. The participants displayed products, raw materials, equipment, services and technology in the food industry, beverage, Bakery, Horeca, food service, hotel, restaurant and cafe.

The Interfood 2013 was held in conjunction with Agri Indo, an international trade exhibition on agriculture which covers ma-

The organizer hopes, Interfood Indonesia in 2013 will be able to encourage entrepreneurs in the food industry to produce quality products, so as to compete with similar products from abroad.

jor elements of the agribusiness sector.

Also held were Krista Exhibitions presenting various trainings and workshops such as Celebrity Chef Cooking Course and Seminar, Cake Decorating Display, Cheese Making Course, Chocolate Master Cup and Chocolate Workshop.

The organizer hopes, Interfood Indonesia in 2013 will be able to encourage entrepreneurs in the food industry to produce quality products, so as to compete with similar products from abroad.

Opening speech by Ramlan Hidayat as Chairman of the Association of Indonesian Bakery

Chef Pastry demonstrates how to make and cut bread

A chef demonstrates how to cook efficiently without reducing the delicacy of the cuisine

Carmelita Hartoto Chairman of the Indonesian National Shipowners Association (INSA) opened the Indonesia Maritime Expo 2013.

Bread dough maker.

Booth of Boga Sari crowded by visitors.

170 exhibitors from 25 countries including China, Germany, Indonesia, Japan, Norway, Singapore, the Netherlands and the UK participated in the Indonesia Maritime Expo 2013.

B8

September 2013 Vol. 2 No. 9

www.thepresidentpost.com

Pictorial Events Lemhanas Friendly Golf Tournament TPP/Heros Barasakti

The National Resilience Institute (Lemhanas) held a golf tournament themed “Lemhanas Friendly Golf Tournament” on Saturday (24/8) in Senayan Golf Club Jakarta.

T

he tournament is organized in conjunction with the disengagement of Force Short Education Program (PPSA) XIX participants that will depart to follow strategic studies in Sweden.

This tournament used system 36 and was divided into several categories namely, Best Gross Overall, Best Nett Overall, Flight A, B, C, Best Flight 1,2,3,Nearest to the pin, Nearest to the line and Longest Drive. Organizers provide door prize to all participants, includingtelevision, refrigerator, gas stove, gadgets, and others.

Opening speech by organizer’s chairman.

(left to right) Achmadi, Governor of Lemhanas Dr. Budi Susilo Supandji, Maj. Sunindyo and Agus.

Dr. Budi Susilo Supandji (middle) gives prizes to champion of the Best Gross Overall, Djoko (left) and to the Best Nett Overall champion, Sulaeman (right).

A total of 60 golfers took part in the Lemhanas Friendly Golf Tournament.

Special performance by Karopenmas Divhumas Police Boy Rafli Amar.

IABC Members’ Gathering TPP/Heros Barasakti

Indonesia Australia Business Council (IABC) held a members’ gathering at the official residence of the Australian Ambassador Greg Moriarty, on Wednesday (21/8). The event was attended by the President of IABC Kris Sulisto, Chairman of the Indonesia Chamber of Commerce Suryo Sulisto, Chairman of APINDO Sofjan Wanandi, and 60 other IABC members.

Greg Moriarty said, “This is a good opportunity to get together and build a comprehensive cooperation between the two countries in business, economy and education.”

IABC Gathering is a regular event held every month, which aims to build networking, discuss various issues, including enhance business opportunities.

MAC 21st Birthday Party The Mercantile Athletic Club Jakarta held a 21st Birthday Party on Wednesday (28/8).“Las Vegas Night” was the theme of the party in which all members can party and feel the Vegas atmosphere. The event was attended by the members of MAC, invited guests and all staffs.

TPP/Rians Rivco

Greg Moriarty, Australian Ambassador to Indonesia.

(left to right) Suryo Bambang Sulisto, Greg Moriarty, Kris Sulisto, Sofjan Wanandi, and S. Slamet.

Sugianto Tan, Mercantile’s Club Director.

President of IABC Kris Sulisto.

(left to right) Steve K, Duncan Macdonald, Larry Crowley.

(left to right) Niel Hawkins, Bill Mcwit, Ken Day.

TPP/Rians Rivco

Amcham Members’ Gathering Fund raising for children who live in underprivileged areas was the theme of the AmCham Members’ gathering held at Barley and Hops on Tuesday (03/09).

The event was attended by approximately 80 AmCham members and invited guests, among others, Dan Roberts, Red Nose Founder and Executive Director and other important guests.

All the staff and guests attended the MAC 21st Birthday Party on (28/8).

Chris Raymond, Amcham members (left) and Mengtao Wang (JAC Recruitment).

(left to right) David A Dorson (left) and Vinay Sudhakar from Deloitte Company.

(left to right) Ina Linda, Hening Lawson (PT Indoprima), and Nina Wijoyono (PT Indoprima).

Dan Roberts, Red Nose Foundation (left) and Sandra Dewi (Santa Fe Moving Company).

Miroslav Dejacovic, Level 7 consulting company (left) and Dan Roberts (Red Nose Foundation).

Andi and his wife got a door prize and won a trip to Amsterdam sponsored by Mercantile.

The President Post

FRANCHISE

SECTION C September 2013 Vol 2. No. 9 www.thepresidentpost.com

Local Culinary Entrepreneurs With International Competitiveness The owners of the five local culinary brands were relatively young when they first started their businesses. They generally started their culinary business by using street carts. However, now their efforts have evolved in many ways; they now have loyal customers, large numbers of employees, and turnovers of billions of rupiah monthly.

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he population of Indonesia, which is estimated to be 250 million, is obviously a promising market. It seems that almost all are taking advantage of the figure. However, the question arises whether local entrepreneurs are keen enough to see this opportunity and build a market of their products.

So far, foreign food franchise outlets still dominate the food industry in Indonesia. At the end of 2012 there were about 350 foreign franchise brands in Indonesia. Until the end of 2013, the number is predicted to increase to 400.

In the middle of this tight market competition, there are still at least five growing local culinary businesses with various specialties.

The five types of culinary business are owned by Indonesians and are gaining acceptance by

consumers. Not just because of the products’ flavor that suit Indonesians’ taste, but also their sense of innovation that has led them to success.

The owners of the five local culinary brands were relatively young when they first started their businesses. They generally started their culinary business by using street carts. However, now their efforts have evolved in many ways; they now have loyal customers, large numbers of employees, and turnovers of billions of rupiah monthly.

The journeys of the young entrepreneurs were long, winding and full of challenges. Thus what they enjoy today can be said to be the sweet fruits of their unyielding spirit of entrepreneurship.

The five types of local culinary businesses that slowly but surely began to gain international acceptance are Ayam Bakar Mas Mono, which specializes in Kalasan grilled chicken menu; Kebab

Turki Baba Rafi, dubbed as the world number one kebab franchise network; Pecel Lele Lela, which is obsessed to make catfish a classy food; Keripik Pedas Maicih, which has a unique taste and a marketing system; and Holycow! STEAKHOUSE by Chef Afit, which serves star-rated hotel standard wagyu steak but at street prices.

To Indonesian Industry Magazine, these successful entrepreneurs in culinary shared their success stories. One of them said that starting a business should be based on courage and the creative spirit.

This is the time for Indonesia to rise by making local entrepreneurs masters in their own country. The same thing applies to local entrepreneurs who are expected to increase their competitiveness and innovation so that their products can be proudly consumed by Indonesians and the international market.

The owner, Agus Pramono, or more familiar called Mas Mono, admitted he was inspired to sell grilled chicken after seeing a grilled chicken seller doing good business. With a capital of Rp 500,000, Mas Mono started the grilled chicken business on a sidewalk cart.

Ayam Bakar Mas Mono

Hard Work and Non-Stop Innovation C

ulinary lovers, especially the fans of grilled chicken, must be familiar with Ayam Bakar Mas Mono. Its distinctive taste and stalls that are spread out in many places have made it famous.

The owner, Agus Pramono, or more familiar called Mas Mono, admitted he was inspired to sell grilled chicken after seeing a grilled chicken seller doing good business. With a capital of Rp 500,000, Mas Mono started the grilled chicken business on a sidewalk cart. At that time he was still using makeshift raw materials without thinking about quality.

However, as the number of buyers increased, he started to choose better ingredients.

Mas Mono and his wife will always strive to come up with the best flavor. Mas Mono, who loves to eat, feels very lucky that he met his

wife who loves to cook.

So they continuously experimented with flavors. Their hard work and innovation resulted in dozens of branches spread all over Indonesia, even in Malaysia, and in the near future Singapore, Japan, Hong Kong and Saudi Arabia.

The menu is diverse yet its main focus is still grilled chicken.

Speaking on turnover, Mas Mono, who once worked as an office boy, said he can earn approximately Rp3 billion per month. With 55 branches and 1,000 employees, Mas Mono implements operational standards of large restaurants that require employees to look clean, neat and disciplined.

“When people talk about grilled chicken, I want them them to automatically mention Ayam Bakar Mas Mono!”

He has won many awards, but, according to Mas Mono, the highest award is the loyal customer. He also emphasizes important factors for those who intend to start a business: be bold in action, do not be afraid to fail, be willing to learn, always develop themselves and be active in communities.

Focus and innovation helped the business to thrive the way it is today.

Mas Mono went through hard times but with optimism and got closer to God. Today, Mas Mono continues to work hard to realize his dreams.

“I want to be remembered as a figure of inspiration, being a person who is able to share passion and positive values is really a special thing”

HOLYCOW! STEAK

AYAM BAKAR MAS MONO

MAICIH SPICY CHIPS

PECEL LELE LELA

KEBAB TURKI BABA RAFI

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September 2013 Vol. 2 No. 9

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Franchise

Maicih Spicy Chips Go International The presence of Keripik Pedas Maicih in 2010 was a phenomenon. Its unique name, peculiar flavor and unusual marketing made Keripik Pedas Maicih sought after by many.

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ccording to Reza Nurhilman, the founder and President of the Republic Maicih, the snacks business originated from his love of eating spicy chips. His initial capital was only Rp 50.000, which was used to buy spicy chips and sell them to acquaintances. Then his business sense led Reza to innovate by making the flavor and appearance of the spicy chips different and more interesting. Now, after changing the ingredients five times, Reza produces his own spicy chips.

Reza said that although Maicih is known as “village food”, its spiciness can be addictive. Reza added that he only needs to educate the market in order to know that his spicy chips have a distinctive flavor.

Maicih’s rapid growth made Reza the head of PT Maicih Inti Sinergi with more than 50 employees. The product variants are also increasing, in addition to spicy crisps there are also Basreng Maicih, Seblak Keju Maicih, Gurilem Maicih, etc.

Quantitatively, Maicih’s sales reached 250 thousand pieces per month with profit of Rp3-5 billion per month.

Maicih is known for its spiciness and and unique marketing concept. Since the beginning, Reza did direct selling and never sold Maicih products through outlets but his friends.

The marketing was done by word of mouth to a growing number of buyers, leading to a community of Maicih lovers.

The growth of “Icihers”, named for Maicih fans, forced Reza to recruit friends to be distributors called Generals of the Republic Maicih. They are called Generals because they move militantly in the fields.

“We do not allow Maicih to be sold at outlets. This makes Maicih different from other spicy chips.”

Nationally, Maicih has reached almost all parts of Indonesia. As for the international market, in the near future Maicih will expand to Malaysia, Singapore, the Philippines, Australia, Canada and the United States. To share

his success story, Reza recently launched a book entitled “Revolusi Pedas Sang Presiden Maicih”. In the book, Reza listed a number of points concerning success, which are attitude, belief and totality.

Though the business is a success, Reza still has a big dream for Maicih. He hopes someday that Maicih can become a holding company that not only sells Maicih snacks but also operate Maicih Café, Maicih Hotel and so on.

This time the dream is built along Maicih property, marked by the construction of three housing complexes in Bandung, Cimahi and Sumedang.

Nationally, Maicih has reached almost all parts of Indonesia. As for the international market, in the near future Maicih will expand to Malaysia, Singapore, the Philippines, Australia, Canada and the United States.

Reza Nurhilman, the founder and President of the Republic Maicih.

Pecel Lele Lela: Catfish Business with Billions of Rupiah Turnover Pecel lele (catfish) is commonly known as street food. However, in Rangga Umara’s hands pecel lele can also be enjoyed in comfortable places or even in shopping malls.

R Pecel Lele Lela has dozens of outlets in Jakarta, Bandung, Yogyakarta, Bali, Makassar, Purwokerto, Semarang, Palembang, Pekanbaru, Batam, Surabaya and Palu. It is also expanding internationally to Malaysia.

angga has his own reasons in choosing catfish as the main raw material in establishing his culinary business in 2006. One of the main reasons is that catfish is easy to find. According to him, pecel lele stalls are always crowded, proof that there is a vast market if the business is run properly. That confidence prompted Rangga to start the venture with an initial capital of Rp 3 million. In 2009 Pecel Lele Lela started to be franchised.

At first people thought that Lela was the name of Rangga’s wife or child. The truth is, Lela is the abbreviation of “Lebih Laku”

(More Saleable).

Not does it have a unique name, the service at the outlets is also very different. No matter what time buyers come, they will still get a welcome greeting “Good morning”. Rangga claims it is intended to motivate employees and as well as to indicate that the product is always fresh as the atmosphere in the morning.

Another interesting promotion is free meals for buyers that come on their birthdays. In addition, those whose name is Lela can enjoy free meals for a lifetime.

Rangga’s journey in building a

business was not without a hitch.

Rangga was previously an office worker but decided to resign because he was tired of working with other people. He also had run a seafood restaurant which did not go smoothly. Now, Pecel Lele Lela has dozens of outlets in Jakarta, Bandung, Yogyakarta, Bali, Makassar, Purwokerto, Semarang, Palembang, Pekanbaru, Batam, Surabaya and Palu.

It is also expanding internationally to Malaysia.

“The vision of Pecel Lele Lela is to be a national brand and business leader of modern pecel lele in Indonesia as well as bringing traditional Indonesian food up to

Rangga Umara international levels”.

To develop his business, Rangga continues to innovate. Rangga, who graduated from Bandung’s STIKMI, believes that one should not be easily satisfied. He has received numerous awards, including a prestigious award given by the Minister of Marine and Fisheries related to his innovative efforts in introducing and raising catfish through creative foods while encouraging th public to increase fish consumption.

The vision of Pecel Lele Lela is to be a national brand and business leader of modern pecel lele in Indonesia as well as bringing traditional Indonesian food up to international levels”.

Rangga also won the Indonesian Small and Medium Business Entrepreneur Award (ISMBEA) in 2010 from the Minister of Small and Medium Enterprises.

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September 2013 Vol. 2 No. 9

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Franchise

Cheap & High Quality Steak Ala Holycow!

Steak is commonly known as upscale food served at fancy restaurants. However, Holycow!

STEAKHOUSE by Chef Afit managed to change that perception.

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ucy Wiryono and Afit D. Purwanto are the owners of Holycow!

STEAKHOUSE by Chef Afit, which has a special place in the hearts of steak lovers.

The idea to run the business started when Afit tasted Wagyu steak at a fancy restaurant. To save money, Afit cooked wagyu steak his own way. From there, the couple invited family and friends to taste Afit’s Wagyu steak. Then in 2010 the family tradition was made into a business.

Before, Holycow! Steak was sold as street food with an initial capital of Rp70 million. The concept of affordable luxurious dish plus the mission that Wagyu beef could be enjoyed by many is a special formula for them in running this business.

Currently Holycow! STEAKHOUSE by Chef Afit already has three CAMPs, namely in Senopati, Kelapa Gading and Kebon Jeruk with 100 employees. Each CAMP is able to sell 400-500 servings a day and this number could reach 600 during the weekend. Since the beginning Holycow! STEAKHOUSE by Chef Afit provides easy, effortless and everlasting promos such as free 1st drink for pregnant women and free Wagyu for those who celebrate their birthdays.

In conducting business, the couple applies the principle of honesty, consistency, never give up, proud serving and not easily satisfied.

According to Lucy, when the business is growing, it’s the time for businessmen to save more.

“We are responsible for the fate of the employees, so in any difficult circumstance, an employer must try desperately to save his business”

Each CAMP is able to sell 400-500 servings a day and this number could reach 600 during the weekend.

Although the couple does not intend to expand its CAMPs to other areas, they have a dream to expand the business, and not just in the culinary field. Lucy says that Holycow! Will soon have a ‘sister’ called Loobie Lobster. The concept is similar to that of Holycow!, where customers can enjoy lobsters at affordable prices of under Rp 100,000.

Lucy Wiryono and Afit D. Purwanto are the owners of Holycow! STEAKHOUSE by Chef Afit.

Kebab Turki Baba Rafi: Local Brand Reaches International Markets Kebab is commonly known as a special dish of the Middle East and Africa. However, who would have thought that the biggest kebab franchise network in the world, Kebab Turki Baba Rafi (KTBR), was founded by Hendy Setiono, a native Indonesian?

I

Hendy Setiono, Kebab Turki Baba Rafi founder.

t all started with his visit to Qatar, where Hendy tasted the country’s diverse culinary and later decided to introduce kebab to Indonesia.

The idea is simple; kebab was not so well known in Indonesia because it was only available in certain restaurants and are relatively expensive. With a capital of Rp 4 million from his personal savings, Hendy began his plan to introduce kebab to the public at affordable prices.

Hendy says the original kebab recipe comes directly from the Middle East, but to be more accepted by the market it was adapted to suit the taste of Indonesians. Armed with confidence, strong determination and relentless innovation, it did not take long time for Hendy to make KTBR widely known.

Now, a kebab business established in 2003 using a cart in Nginden Semolo, Surabaya, has evolved into thousands of outlets in three countries, namely, Indonesia, Malaysia and Philippines.

KTBR outlets in Indonesia are spread out from Aceh to Papua.

“From thousands of outlets, we own approximately 100 outlets ourselves. We call it indepen-

dent and sharia outlets, the rest are franchisees.“ KTBR now employs approximately 1,500 workers, including operators in the field and for every quarter the management has set a target of Rp 1 billion in turnover. This figure will likely rise due to the recent MoU signing with the Master Franchisee Netherlands, an initial step to enter the European market. After the Netherlands, KTBR plans to expand to England, Germany and Belgium.

Hendy’s big dream for KTBR is to make this local brand king in the international arena. It seems

From thousands of outlets, we own approximately 100 outlets ourselves. We call it independent and sharia outlets, the rest are franchisees.“

that the dream is beginning to take shape, proving that a local product can attain international standards.

Hendy wants to be remembered as an Indonesian businessmen who is always proud of local products.

Kebab Turki Baba Rafi outlet in Malaysia.

He said that success is when what we run is well received by the market and brings benefits to many people.To young Indonesian entrepreneurs, Hendy’s message is, do not hesitate to step when you are ready and confident. He also hopes that

young entrepreneurs in Indonesia can become creative entrepreneurs, tough and with the ability to manage natural resources, culture and human resources in order to compete with foreign investors.

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September 2013 Vol. 2 No. 9

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Living expatlingo.com

More Connected, Yet More Alone People make dinner reservations on OpenTable; check in on Foursquare when they arrive at the restaurant; take a picture of their food to share on Instagram; post on Twitter a joke they hear during the meal; review the restaurant on Yelp; then, finally, coordinate a ride home using Uber.

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ast weekend, I was watching television with a few friends, browsing the week’s most popular YouTube videos, when a piece in the comedy section called “I Forgot My Phone” caught my eye. As I was about to click play, however, a friend warned, “Oh, don’t watch that. I saw it yesterday, and it’s really sad.”

The two-minute video, which has been viewed more than 15 million times, begins with a couple in bed. The woman, played by the comedian and actress Charlene deGuzman, stares silently while her boyfriend pays no mind and checks his smartphone.

The subsequent scenes follow Ms. deGuzman through a day that is downright dystopian: people ignore her as they stare at their phones during lunch, at a concert, while bowling and at a birthday party. (Even the birthday boy is recording the party on his phone.) The clip ends with

Ms. deGuzman back in bed with her boyfriend at the end of the day; he is still using his phone.

Ms. deGuzman’s video makes for some discomfiting viewing.

It’s a direct hit on our smartphone-obsessed culture, needling us about our addiction to that little screen and suggesting that maybe life is just better led when it is lived rather than viewed. While the clip has funny scenes — a man proposing on a beach while trying to record the special moment on his phone — it is mostly … sad.

“I came up with the idea for the video when I started to realize how ridiculous we are all being, myself included, when I was at a concert and people around me were recording the show with their phones, not actually watching the concert,” Ms. deGuzman said in an interview.

“It makes me sad that there are moments in our lives where we’re not present because we’re looking at a phone,” said Ms. de-

Guzman, who also wrote the piece, which was directed by Miles Crawford. She mused that, like it or not, experiencing life through a four-inch screen could be the new norm.

Or not. Ms. deGuzman’s video may have landed at one of those cultural moments when people start questioning if something has gone too far and start doing something about it.

Last week, the Unsound music festival in Poland banned fans from recording the event, saying it did not want “instant documentation” and distractions that might take away from the performances. In April, during a show in New York City, Karen O, the lead singer of the rock band the Yeah Yeah Yeahs, told audience members to put away their phones (using an expletive to emphasize her point).

A number of New York restaurants, including Momofuku Ko and Chef’s Table at Brooklyn Fare, have prohibited people

bites.today.com

A number of New York restaurants, including Momofuku Ko and Chef’s Table at Brooklyn Fare, have prohibited people from photographing their food. from photographing their food.

(Note to foodies: Your quinoa does not need to be artfully posted with an old-timey look on Instagram.) And, of course, many mothers and fathers who fought to keep the television out of the kitchen may see smartphones as the next threat to dinnertime civility.

A group of friends were on their phones during a birthday party at the Gowanus Yacht Club bar in Brooklyn. Michael Nagle for The New York Times A group of friends were on their phones during a birthday party at the Gowanus Yacht Club bar in Brooklyn.

In the late 1950s, televisions started to move into the kitchen from the living room, often wheeled up to the dinner table to join the family for supper.

Leaving a Tip: A Custom in Need of Changing?

Now, here is a technique that is guaranteed to have no effect on your service: leave a generous tip.

I’ve tipped slightly above the average for years, generally leaving 20 percent of the total, no matter what. According to one study, lots of people are just like me, sticking with a reasonable percentage through good nights and bad. And it doesn’t do us any good, because servers have no way of telling that we aren’t the hated type that leaves 10 percent of the pretax total, beverages excluded.

Some servers do try to sniff out stingy tippers, engaging in customer profiling based on national origin, age, race, gender and other traits. (The profiling appears to run both ways: another study showed that customers tended to leave smaller tips for black servers.)

I could go on against tipping, but let’s leave it at this: it is irrational, outdated, ineffective, confusing, prone to abuse and sometimes discriminatory. The people who take care of us in restaurants deserve a better system, and so do we.

That’s one reason we pay attention when a restaurant tries another way, as Sushi Yasuda in Manhattan started to do two months ago. Raising most of its prices, it appended this note to credit card slips: “Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted.”

Sushi Yasuda joins other restaurants that have done away

with tips, replacing them with either a surcharge (Atera and Chef’s Table at Brooklyn Fare in New York; Next and Alinea in Chicago; Coi and Chez Panisse in the San Francisco Bay Area) or prices that include the cost of service (Per Se in New York and the French Laundry in Yountville, Calif.).

The chef Tom Colicchio is considering service-included pricing at one of his New York restaurants, paying servers “an hourly rate that would be consistent with what they make now,” he said. “I think it makes perfect sense. I’m not sure my staff is going to think it makes perfect sense.”

These restaurants are numerous enough and important enough to suggest that a tip-reform movement is under way.

On the other hand, they are few enough and exceptional enough to suggest that the movement may remain very small, and move very slowly.

Americans have stuck with tipping for years because all parties thought it worked in their favor. Servers, especially in restaurants from the mid-to high-priced, made good money, much of it in cash, and much of that unreported on tax returns.

Owners saved on labor costs and taxes. And customers generally believed that tips brought better service.

The self-interest calculation may be different now. Credit card receipts and tougher oversight have virtually killed off unreported tips.

Another change is cultural.

The restaurant business can be seen as a class struggle between the groomed, pressed, articulate charmers working in the dining room and the blistered, stained and profane grunts in the kitchen. The rise of chefs that are also owners has brought a few of the grunts to power. But as the average tip has risen to 20 percent or so from 15 percent, the pay for line cooks, dishwashers and others has stayed low.

At Coi, in San Francisco, Daniel Patterson, the chef and owner, levies an 18 percent service charge to be “shared by the entire staff,” the menu notes. One of his motives was to level out the income disparity that tipping creates between the kitchen and the front of the house, he said.

“Neither one is more important than the other,” Mr. Patterson said. “So it doesn’t make sense to me that servers would make three to four times as much as cooks.”

A second change has been howling outside the door. Frontof-house workers are suing one respected restaurant after another, including Dovetail, last month, accusing them of playing fast and loose with the laws on tips. The charges include sharing tips with workers who aren’t eligible for them and making tipped employees spend too much time on what is called sidework, like folding napkins between meals.

One such lawsuit was settled for more than $5 million.

Some owners now think they can avoid the suits by eliminating tips. NYT

It makes me sad that there are moments in our lives where we’re not present because we’re looking at a phone.”

And then, TV at the dinner table suddenly became bad manners. Back to the living room the TV went.

“It never really caught on in most U.S. homes,” said Lynn Spigel, a professor at the Northwestern University School of Communication and author of the book, “Make Room for TV.” “At one point, a company even tried

to invent a contraption called the TV Stove, which was both a TV and a stove,” she said.

“Every experience is being mediated and conceived around how it can be captured and augmented by our devices,” said Mathias Crawford, a researcher in human-computer interactions and communications at Stanford University. “No place is this more apparent than our meals, where every portion leading up to, during and after a dining experience is being carved out by particular apps.”

People make dinner reservations on OpenTable; check in on Foursquare when they arrive at the restaurant; take a picture of their food to share on Instagram; post on Twitter a joke they hear during the meal; review the restaurant on Yelp; then, final-

ly, coordinate a ride home using Uber.

“If you’re wondering when people are going to reject the phone, that will mean they need to reject Silicon Valley’s entire concept of how you ought to be dining,” Mr. Crawford said. But, he added, it was possible. “Yes, society is changing, but the iPhone is only really six years old, and those changes aren’t set in place.” Given the overwhelming response to Ms. deGuzman’s video, people are at least thinking about those changes.

“It wasn’t until this year that I’ve had these revelations about living in the moment without my phone,” Ms. deGuzman said. “I still have my phone with me, but I try to leave it in my purse. Now I find myself just taking in a moment, and I don’t have to post a picture about it.” NYT

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September 2013 Vol. 2 No. 9

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Health

Oral Infections Causing More Hospitalizations biolase.com

Left untreated, a serious tooth abscess can eventually kill.

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n 2007, Deamonte Driver, a 12-year-old boy in Maryland, died after bacteria from an abscessed tooth spread to his brain.

The case drew widespread media attention, and his is the cautionary tale cited whenever politicians and advocates discuss access to oral health care.

But a new study suggests that deaths from these preventable infections may not be as rare as once thought and that the number of Americans hospitalized with them may be on the rise.

Studies have shown that dental problems account for hundreds of thousands of emergency room visits each year. The new analysis, published in the September issue of the Journal of Endodontics, focused on patients who had to be hospitalized because of an infection of the tip of the tooth’s root, called a periapical abscess. It is a common consequence of untreated tooth decay, and it can be dangerous if it spreads.

After reviewing national patient data from 2000 to 2008, researchers in Boston found that the people hospitalized for dental abscesses increased by more than 40 percent, to 8,141 in 2008 from 5,757 in 2000. Some 66 patients died after they were hospitalized, according to the new analysis.

“We have not had verification before of the number of deaths,” said Dr. Frank Catalanotto, chairman of the department of community dentistry and behavioral science at the University of Florida College of Dentistry, who was not involved in the report.

“The seriousness of dental infections that go untreated or are treated too late is a bigger problem than we had estimated.”

Studies have shown that dental problems account for hundreds of thousands of emergency room visits each year. The new analysis, published in the September issue of the Journal of Endodontics, focused on patients who had to be hospitalized because of an infection of the tip of the tooth’s root, called a periapical abscess. It is a common consequence of untreated tooth decay, and it can be dangerous if it spreads.

When money and access are not problems, an abscessed tooth can easily be treated with a root canal or an extraction.

But increasingly, Americans rely on hospital emergency rooms for dental care, instead of regular dentist visits — a trend exacerbated by a lack of insurance coverage and trouble paying out of pocket.

Last year, a Pew Charitable Trusts report estimated that preventable dental conditions, including abscessed teeth, were the primary reason for 830,590 emergency room visits in 2009 — a 16 percent increase from 2006.

Until now, it has been unclear just how many patients end up hospitalized specifically for abscessed teeth or how much they cost the health care system. According to the new analysis, that figure was $858.9 million, after adjustment for inflation, from 2000 to 2008.

“That’s what we are paying instead of paying up front, and it’s such a waste, one with a high human cost,” said Shelly Gehshan, the director of the Pew Children’s Dental Campaign. “Dental insurance is eroding little by little, and affordability of dental care is something the industry has not addressed.”

A periapical abscess is a “rare event, and to have significant morbidity is even rarer,” said Dr. Bruce Dye, a dental epidemiologist at the Centers for Disease Control and Prevention. Still, the number of patients hospitalized for them is “creeping up.”

But Dr. Dye cautioned that the analysis did not address whether patients were able to afford dental care; some may have ended up at the emergency room for a complication after receiving a root canal from a dentist. “You can’t make the statement that this is a sign of increased problem of access to care,” he said.

Is It Better to Bike or Run? joanmoloneynutrition.ie “Both running and cycling are excellent forms of exercise,” said Hirofumi Tanaka, a professor of kinesiology and director of the Cardiovascular Aging Research Laboratory at the University of Texas at Austin.

“Both are rhythmic aerobic activities that involve large muscle mass.”

But there are differences, which could sway you toward one activity over the other. In general, running burns more calories per minute than cycling, Dr. Tanaka said, although the differential slims if you cycle vigorously.

According to broad calculations from the American College of Sports Medicine, someone weighing 150 pounds who runs at a brisk seven minutes per mile will incinerate about 1,000 calories per hour. That same person pedaling at a steady 16 to 19 miles per hour will burn about 850 calories. Meanwhile, walking requires far fewer calories, only about 360 per hour at a four-mile-per-hour pace.

Strenuous running and cycling also can equivalently dull appetite, at least temporarily. In a study published earlier this year, healthy, active men were assigned to run for an hour on one day and on another, to ride vigorously for the same amount

europeanfinancialreview.com

Any of these activities, however, will improve your aerobic fitness, and greater aerobic fitness is closely linked to a reduced risk of chronic disease and a longer life span. richmond.gov.uk

of time. During both activities, the men’s blood levels of ghrelin, a hormone known to stimulate hunger, fell, compared to when they sat quietly.

But running has a downside: Injuries are common. Biking, meanwhile, is gentler. “Cycling is a nonweight bearing activity, so it is better for your knees and joints,” Dr. Tanaka said, “and it does not cause much muscle soreness.” Walking, likewise, results in few injuries, unless, like me, you are almost comically clumsy.

Any of these activities, however, will improve your aerobic fitness, and greater aerobic fitness is closely linked to a reduced risk of chronic disease and a longer life span.

“There is no easy answer to say which exercise is better, because it depends on individuals,” Dr. Tanaka said. “Personally, I have an iliotibial band problem and cannot do cycling. So I run.”

But any physical activity will improve health compared with performing none, he said. So walk one day, maybe jog another, and borrow a bicycle or join a spinning class on still another.

Whichever activity you enjoy the most and will stick with is the best activity for you. NYT

Medicaid coverage for routine dental services for adults varies widely by state; Medicare does not cover routine dental care.

The programs do pay for hospital stays, however, and the new study found that Medicare paid for roughly 19 percent of hospitalizations for dental abscesses, while Medicaid shouldered 25 percent and private insurance plans paid for 33 percent.

In recent years, Dr. Samuel Dorn, a chairman of endodontics at the University of Texas Health Science Center at Houston, said

he had seen an increase in hospitalizations for dental abscesses.

“People put it off until they find their face all swollen or they can’t breathe, and they run to the hospital,” he said. “And that’s when we have these emergent conditions.”

His colleague Dr. Mark Wong, the chairman of oral surgery at the university, said residents’ logs showed that in 2008, 273 “incision and drainage” procedures because of abscessed teeth were done in local hospitals. Last year, the number was 488; 248 patients were hospitalized.

“To call this an epidemic of dental infections we are seeing in major hospital environments and in our emergency rooms — it’s not an overstatement,” Dr. Wong said.

An acute abscess of an upper tooth can cause cheek swelling and, untreated, lead to a brain abscess or a sinus infection. If bacteria spread from an abscess in a lower tooth, the swelling can constrict the airway. Some patients underestimate how serious the condition can be.

“It’s better to have it treated when it’s treatable than to wait until it gets out of hand and is possibly life-threatening,” said Dr. Gary R. Hartwell, the president of the American Association of Endodontists. The increase in hospitalizations is part of a sea change in dental care, he said: “Now it’s reached a point unless something’s bothering them or they’ve got pain, people say, ‘I’m just not going to go to the dentist.’ ” NYT

Shorter Workweek May Not Increase Well-Being Think a shorter workweek will make you happier?

Maybe not, a new study suggests.

South Korea changed its labor regulations in 2004, reducing the work week to five days a week and 40 hours from the previous sixday, 44-hour week, providing a natural experiment to test whether working fewer hours would increase happiness.

Robert Rudolf, an assistant professor of economics at Korea University in Seoul, studied the period 1998 to 2008, when average working hours gradually declined by about 10 percent. His results appear online in The Journal of Happiness Studies.

Using data from an annual survey of 5,000 Korean households, Dr. Rudolf analyzed overall job satisfaction and overall satisfaction with life before and after the changes in working hours. Using a five-point scale, ranging from very dissatisfied to very satisfied, he found that for both sexes, a reduction in hours had no effect on job or life satisfaction.

I am a big fan of flexible working solutions with flextime, part-time options, etc. In my opinion, higher personal freedom about their work flanked with welldesigned performance targets will make workers both happier and more productive.”

So should we still aim to reduce working hours?

Probably not, Dr. Rudolf said, but “I am a big fan of flexible working solutions with flex-time, part-time options, etc. In my opinion, higher personal freedom about their work flanked with well-designed performance targets will make workers both happier and more productive.” NYT

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Travel

Amidst Volcanic Ashes Batur Mountain is an active volcano located in Kintamani, Bangli district, on the island of Bali. The volcano has erupted dozens of times since 1804, thus creating an amazing caldera for cyclists. The sandy mountain is often visited by cyclists to fulfill their adrenaline rush or to simply ease their minds from the stress built up during their routine lives.

Words: Adita Alaik Photos: Iqbal Alaik

I

Cycling down the hills gave us a different sensation because it felt so free to slide down from such a height that we went back up the hills again several times and slide down over and over again.

and three of my friends who happened to be of Balinese descent drove straight from the Ngurah Rai airport to Bangli district. The beautiful views of Bali such as the green rice fields were really a treat to our eyes.

There was minor traffic congestion because it was in conjunction with a local ritual in which locals, who were wore traditional attire and carried offerings, filled the streets.

The 1717-meter volcano has a big and beautiful blackish-grey caldera which formed a series of hills that never ceased to amaze me.

The calf and thighs felt so heavy when we encountered the loose soil and thus we tried as best as we could to cycle on the light grey soil which was quite solid to cycle on.

Cycling down the hills gave us a different sensation because it felt so free to slide down from such a height that we went back up the hills again several times and slide down over and over again. We also explored the villages at the foot of the Batur Mountain in search for lunch.

After we had our lunch, we decided to cycle around the villages and paddy fields in Bali. One of the things that attracted my attention was the Kintamani dogs we encountered along the way.

The Kintamani dogs have been internationally acknowledged as Indonesia’s indigenous dog.

Entering the paddy field area, we encountered a group of German tourists guided by a local travel agent. They seemed excited to be in the middle of the rice field and took pictures of just about anything they saw. They even took pictures of crickets. At one point, the tour guide stopped in front of banana trees and gave

them a brief explanation about the plant. The tourists touched the leaves, fruit, banana blossoms, trees and they of course took snaps while posing in front of the banana trees.

It was amazing to see how a banana tree could become an interesting tourism object for foreign tourists. Such experience gave me a new perspective that every inch of Indonesia could be an interesting object for foreign tourists as long as we know how to present our country’s potentials in interesting and smart ways.

THE 1717-METER VOLCANO HAS A BIG AND BEAUTIFUL BLACKISH-GREY CALDERA WHICH FORMED A SERIES OF HILLS THAT NEVER CEASED TO AMAZE ME.

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September 2013 Vol. 2 No. 9

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Tourism

President Hails Sail Komodo presidenri.go.id/Cahyo

President Susilo Bambang Yudhoyono has said Sail Komodo 2013 would preserve Indonesia tourism by making East Nusa Tenggara province a world tourist destination.

“I

hope the international marine event of Sail Komodo 2013 will accelerate the development in East Nusa Tenggara and preserve tourism in Indonesia,” the head of state said during the Sail Komodo peak event here on Saturday.

“An international maritime event such as this is a historical landmark in the revival of our country. It shows the world that we have not only abundant natural resources but also a booming marine tourism industry,” President Yudhoyono said at the inauguration of the peak event for Sail Komodo 2013 here on Saturday.

Accompanied by his wife First Lady Ani Yudhoyono, Coordinating Minister for People`s Welfare Agung Laksono, Marine Affairs and Fisheries Minister Syarif C Sutarjo, and East Nusa Tenggara Governor Frans Lebu Raya, the head of state pushed a button, marking the inauguration of the event that has brought together some 106 yachts from 26 countries.

“I hope that in the near future the area around Komodo Island will become a world-class tourism destination,” the president remarked, as he invited the foreign participants in the Sail Komodo event to visit Komodo Island.

Other ranking officials attending the opening included State Reforms Minister Azwar Abubakar, Forestry Minister Zulkifli Hasan, Social Service Minister Salim Segaf Al Jufri, Tourism and Creative Economy Minister Marie Elka Pangestu, Na-

President Yudhoyono and his wife First Lady Ani Yudhoyono arrived at Labuan Bajo in West Manggarai district on Friday and then boarded naval boat KRI Baladau 643 for Komodo island, renowned for its large Komodo reptiles that have been named one of the seven wonders of the world.

tional Defense Forces (TNI) chief General Moeldoko, National Police chief General Timur Pradopo, Attorney General Basrie Arief, and a number of lawmakers and ambassadors.

Sail Komodo 2013 is themed “Golden Bridge Toward East Nusa Tenggara,” where the latter is being showcased as a world tourism destination in Indonesia.

It is the fifth sailing event held in Indonesia after Sail Bunaken in North Sulawesi province in 2009, Sail Banda in Maluku province in 2010, Sail Wakatobi and Bitong in Southeast Sulawesi province in 2011 and Sail Morotai in North Maluku in 2012.

President Yudhoyono and his entourage arrived at Labuan Bajo in West Manggarai district on Friday and then boarded naval boat KRI Baladau 643 for Komodo island, renowned for its large Komodo reptiles that have been named one of the seven wonders of the world.

“The visit is part of the Sail Komodo 2013 peak activities in East Nusa Tenggara,” Coordinating Minister for People`s Welfare

Agung Laksono, who was part of the president`s entourage, said.

He added that there are a number of activities scheduled at the international sailing event at Labuan Bajo in the province`s West Manggarai district. “The President spent a night at Labuan Bajo before taking part in Sail Komodo 2013 on Saturday,” he said.

Planning for the event has been continuous since July 2013, with all provinces in the archipelago becoming destinations for the sailing participants and Kupang, the capital of the province, serving as the entry point.

Besides arts and cultural performances, there are also other activities that have been held to highlight the event, as it reaches its peak on Saturday.

Yudhoyono attended the inauguration on Friday of the Komodo National Park (TNK) as one of World`s Seven Wonders on the Komodo island, East Nusatengggara. The inauguration ceremony was also attended by Bernard Webber, the president of New7-

Regional Tourism Development Gets Govt Support The government has pledged its support for tourism-development efforts made by the country`s citizens and regional governments once Sail Komodo 2013 concludes.

“We will provide support for regional marine-tourism development. We will determine which areas need to be developed under priority,” Marine Affairs and Fisheries Minister Sharif C. Sutardjo said on the sidelines of the Sail Komodo 2013 inauguration in Labuan Bajo, East Nusa Tenggara, on Saturday.

He noted that the most urgent issues would take priority to allow people to enjoy the immediate benefits of hosting Sail Komodo 2013 in Indonesia. The minister remarked that the international community should also have the opportunity to see the unspoiled beauty of Labuan Bajo, especially that of Komodo National Park, which hosts

Sharif C. Sutardjo Marine Affairs and Fisheries Minister

We will provide support for regional marine-tourism development. We will determine which areas need to be developed under priority.”

Indonesia`s Komodo dragons--one of the world`s largest lizard species.

Earlier, on Friday, President Susilo Bambang Yudhoyono had officially named the park a world heritage site.

Meanwhile, Chief People`s Welfare Minister Agung Laksono said the aim of Sail Indonesia, especially Sail Komodo 2013, was to identify Komodo National Park as a world tourism destination. “We will provide consistent support after Sail Komodo 2013 to ensure that it improves conditions here,” Agung stated.

He said the government would empower locals by providing entrepreneurship training and would support efforts to develop the area`s image as a tourist destination through the sale of handicraft products, the provision of guided tours, and the provision of tourist accommodations.

Over 4.8m Tourists Visit Indonesia up to July More than 4,872,260 foreign tourists visited Indonesia in the first seven months of this year, up 6.4 percent from the same period last year, Tourism and Creative Economy Minister Mari Elka Pangestu said.

“In the previous years the number of tourist arrivals fell during the fasting month but this is not the case with this year. We hope there will be a significant increase in the number of tourist arrivals at the end of this year,” she said here on Monday.

In July 2013 alone, Indonesia received 717,784 tourist arriv-

als, a 2.4 percent increase compared to 701,200 in the same month last year, she said. She added the number of tourist arrivals rose slightly in July, which coincided with the holy month of Ramadhan.

“That is one of the factors encouraging tourists from predominantly Muslim countries such as Malaysia, several Middle Eastern countries and Singapore to reduce their overseas trips,” she said.

Data from the Central Statistics Agency (BPS) show that compared to July 2012, the number of tourist arrivals from

United Arab Emirates dropped 86.2 percent, Bahrain 65.7 percent and Saudi Arabia 59.3 percent in July 2013.

Meanwhile, the number of tourists from Singapore and Malaysia fell 2.9 percent and 13 percent respectively.

However, the number of tourist arrivals from China increased 29.9 percent, Japan 0.1 percent, South Korea 4 percent, Taiwan 38.7 percent, the Netherlands 5.8 percent, France 3.7 percent, Britain 13.1 percent, India 18.7 percent, Germany 4 percent, and the Philippines 12.6 percent.

Wonders Foundation, `Komodo ambassador` M. Jusuf Kalla and a number of foreign envoys.

Komodo dragons, rare ancient animal species, which are found only on the Komodo island , have been named one of the seven wonders of the world.

Yudhoyono said he was amazed after for the first time physically seeing the ancient animals . “Thank God after nine years of longing to see komodo has at last come to reality,” he said upon arrival on the island in Manggarai Barat in the province of East Nusa Tenggara.

He said Indonesia, the East Nusa Tenggara people in particular should be proud with the in-

clusion of komodo as one of new seven wonders of the world.

Jusuf Kalla reflected how he had gone through difficulties to get acknowledgement of komodo one of the world`s seven wonders. Komodo beat candidates from hundreds of other countries in the world, he said.

Forestry Minister Zulkifli Hassan said the Komodo National Park was already named a a World Heritage by UNESCO in 1991. The process of inauguration was marked with the handing over of a certificate by Bernard Webber to East Nusa Tenggara Governor Frans Lebu Raya and the unveiling of the name board.

Miss World Increases Tourist Arrivals: Governor Bali governor I Made Mangku Pastika said the planned Miss World beauty contest on the island later this month would increase the number of foreign tourists coming to the island.

“I am convinced that Miss World would give a positive effect to tourism not only in Bali but also in Indonesia in general. This is an international event. They certainly will follow rules in the region,” he said here on Monday in the company of deputy governor Ketut Sudikerta.

Regarding the Islam Defenders` Front`s efforts to abort the beauty pageant, the governor said, “What is their reason, which part are they against? Miss World is not pornography. The participants will obey the rules.”

He said the participants are like foreigners who come to the island for a conference. This event will also bring financial benefits to Bali, he said.

“What is wrong with Miss World? They will also promote Bali. They will also follow customs and respect cultural traditions in Bali.

They will respect ethics, customs and traditions in Bali,” he said.

The governor said it was illogical and too much for the FPI to oppose the holding of the event put of fear that it would become a show of body parts.

He said the event would not bring any losses for Bali as well as Indonesia, on the other hand it would bring much benefit for Bali and Indonesia. “For Bali it would become a free promotion. There will be economic benefit with regards to tour-

Bali governor I Made Mangku Pastika

I am convinced that Miss World would give a positive effect to tourism not only in Bali but also in Indonesia in general.

This is an international event. They certainly will follow rules in the region.” ism promotion,” he said.

The general chairperson of the Family Development Movement (PKK), Mrs Pita Gamawan Fauzi, the wife of the home affairs minister, shared the view saying that the event must not be made into a problem because it would be held with respect to cultural and ethical norms as well as regulations applied in the country.

“So long as they follow the rules, why must it be a problem?

The activity will not affect local cultures. It will even promote Indonesia to the world,” she said.

The plan to hold part of the Miss World beauty pageant activities in Jakarta has been scrapped and so all activities will be centered in Bali.

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September 2013 Vol. 2 No. 9

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Golf

Gading Raya Golf & Country Club for Member and Family’s Pleasure gadingrayagolf.com

Gading Raya is an oasis of scenic, private parkland which will complement perfectly the stunningly-created features of the golf course whose ample tees, forgiving fairways, shimmering lakes, subtle bunkers and manicured greens are the hallmarks of the Gading Raya Padang Golf & Klub.

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he Gading Raya Golf & Country Club has been created to give it’s members the finest golf and family oriented country club in Jakarta. The Club has a combination of an Indonesian resort ambience with an International Championship 18-hole private golf course, golf academy, tennis academy, superb club house amenities, attentive service, excellent dining and sport, and a host of events specially focused on golf, tennis, swimming and leisure for members and their family.

The Gading Raya Golf & Club is many things: refreshing, pleasurable, unhurried, amiable, and unpetentious but above all, fun.

The exclusive golf & country club is the creation of PT Jakartabaru Cosmopolitan, which has successfully developed the Gading Raya Serpong housing & Business District Complex. The club is easily accessible by way of the direct interchange from the Jakarta-Merak tollway, which is only 25 minutes from Semanggi.

On arrival at the club house, members and their guests will find life there has is tempo-relaxing, quite, calm, and infor-

mal.

Gading Raya is an oasis of scenic, private parkland which will complement perfectly the stunningly-created features of the golf course whose ample tees, forgiving fairways, shimmering lakes, subtle bunkers and manicured greens are the hallmarks of the Gading Raya Padang Golf & Klub.

The golf course was designed

by Graham Marsh, one of the leading Australian professional golfers of his generation. His work has included courses such as The Vines Resort (Perth), Palm Meadows Resort(Gold Coast) Old Silo (Kentucky), and Terry Hills Golf & Country Club. The focal point of the club is the championship golf course, the golfing experience continues even after the final hole.

The spacious, fully carpeted locker rooms, complete with large mahogany lockers, grooming, prayer and massages rooms and bar, are a popular place for relaxing and recounting the day’s play. Adjacent to the locker rooms is a well-appointed spa area incorporating a sauna and whirlpool.

Also located in the golf wing of the Club House is an excellent golfers open-dining and bar

The exclusive golf & country club is the creation of PT Jakartabaru Cosmopolitan, which has successfully developed the Gading Raya Serpong housing & Business District Complex. The club is easily accessible by way of the direct interchange from the JakartaMerak tollway, which is only 25 minutes from Semanggi.

area and well stocked Pro-shop that offers leading brands of golf equipment, attire and golf club merchandise in all the latest style competitive prices.

In the conference and banquet wing of the Clubhouse Members will be able to host a variety of events at a sensible price supported by an effcient, welltrained and experienced banquet team whose sole objectives is to ensure that the Member’’s function is outstanding.

The Club’s Fitness Centre located in the Country Club wing boasts a state-of-the-art gym with the spacious aerobics room where Members can, under expert guidance, keep their figures trim. The children’ video room houses all the latest video and electronic games and Member’

The golf course was designed by Graham Marsh, one of the leading Australian professional golfers of his generation. infants are equally taken care of in the Club’ nursery, which provides the perfect place for toddler to play together in a stimulating environment.

The Club’s pool terrace, serviced by the pool bars and Asian dining area, is the ideal place to meet up with friends or entertain the children.

Comfortable sun beds, shaded

by large umbrellas, set in a luxuriant tropical environment offers the perfect retreat where Member relax in peace.

Driving Range is lit in the evening and the Club’ golf professionals employ the latest techniques for Members who want to reduce their handicap. Club instruction is supplemented by regular Golf Clinics conducted by leading golf instructors. Likewise, the Club’ numerous outdoor tennis court are lit for night play, the Club’s tennis professionals provide expert coaching all year round for all ages and standards players.

For junior sports enthusiasts to the seasoned pros, everyone will discover that variety really is the spice of the Gading Raya Padang Golf & Klub’ golfing and sporting lifestyle.

Nike ONE RZN Faster and Lighter Golf Ball The ONE RZN is the latest addition to the resincore family Nike launched successfully last year with the 20XI ball. The company also said that the ONE RZN is a lighter and faster core. These are cheaper than the premium offerings used on both the PGA and European Tours, but there are similarities.

The faster, lighter RZN material replaces the conventional rubber core, which means the ball offers more control.

By refining the formula to increase the size of the core, Nike say they have created better feel off all hits without taking distance off the tee.

Nike released the Nike One RZN golf balls which aimed at a “wider range” of amateur golfers, Nike Golf says, and they maintain driver distance while producing a softer feel on all shots. There are two models: the One RZN and One RZN X. Think of the X as the more distance-oriented of the two models, with a more penetrating flight; the One RZN has a softer feel at impact.

The faster, lighter RZN material replaces the conventional rubber core, which means the ball offers more control.

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.

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

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

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

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

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

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

www.borobudur-golf.com