Update issue 2 hires finale

Page 1

• JOURNAL •

ISSUE 2 - 2014

Overseas Business Network (OBN) at The British Chamber of Commerce Annual Conference, London Page 15

UK-Asean Business Council UK Roadshow - Sizzling Southeast Asia: Unlock Your Business Potential In Asean Page 18


ELITE CREW asIa

39 OFFICES 2,500 SPECIALISTS

Success has many parents. So as Colliers became the world’s fastest growing real estate services firm, we had our people—and our clients—to thank. With an integrated global services platform, and property experts and market specialists in every corner of the globe, Colliers is a united effort to advance the interests of clients, and create opportunities in commercial real estate in ever-more-helpful ways. colliers.com

World Trade Centre I, 10th and 14th Floors, Jl. Jend. Sudirman Kav. 29 - 31, Jakarta 12920 | M: +62 21 521 1400


ISSUE 2 - 2014 EVENTS

European Joint Gathering

Trowers & Hamlins / JLL – Property Investment In UK Seminar

BritCham Annual Gathering Meeting

08

09

12

Our patron:

06

Giving Kids A Sporting Chance Charity Night with Steven Fabes

07

Business & Social Gathering

08

European Joint Gathering (IFCCI)

09

Trowers & Hamlins / JLL Property Investment in UK Seminar

10

ACCA - CEO/CFO Round Table

11

Business & Social Gathering

12

BritCham Annual General Meeting 2014

15

Coktail Evening with CIMA

16

Overseas Business Network (OBN) at The British Chamber of Commerce Annual Conference, London

17

UK-Asean Business Council UK Roadshow - Sizzling Southeast Asia: Unlock Your Business Potential In Asean 7 - 11 April 2014

BANKING & FINANCE

18

HSBC Indonesia Manufacturing PMI

20

Personal Finance - Investing in a Greener Planet - contributed by PPI

Proudly sustained by:

BUSINESS & ECONOMICS

The Executie Office is kindly sponsored by:

22

CSR and Sustainable Livelihood - contributed by Maria Rosaline Nindita Radyati, Ph.

24

Heartbleed - Things You Need To Know

26

Eco Cars And Key Developments Within The Global Auto Industry

29

Provided a Better Education with Digital Technology Support

36

An Up.date Straw Poll For The Presidential Battle (…from the mouths of babes…)

38

Scotland’s Independence.. Have your say

ADVERTORIAL

40

“What Makes A School International” - contributed by Singapore International School (Indonesia)

LIFESTYLE & HEALTH

42

Getting It Controlled contributed by Raffles Hospital

44

Make Sure Your International Health Insurance Policy Responds When Needed

46

David and Goliath: Underdogs, Misfits, and the Art of Battling Giants

MEMBER’S ANNOUNCEMENTS

47

Etihad Airways A380 And B787 Showcase Unparalleled Luxury, Comfort And Service

49

The Crane Is Back In Jakarta From June 1St, 2014 Lufthansa brings back its Jakarta flight to connect with the largest Europe network

50

New Member

Airline partner of the year 2013/2014:

THIS MONTH’S FEATURES This publicatio is not for sale. It is distributed free to members of the British Chamber of Commerce in Indonesia (BritCham). The article selected for this publication represent a range of views on signifiant current issues in Indonesia. The views expressed in this journal cannot be assumed to represent the official views of BritCham as a whole nor of its Board of Management and Executie Offic Any errors of fact that occur in the article are the responsibility of the contributing author or publisher. The article are not intended as formal advice and should not be relied upon as such.

30

Indonesia General 2014 - contributed by Young Professionals Group

32

Elections in Indonesia - From Time to Time

34

Briefing for Business: Indonesian Presidential Elections

www.britcham.or.id

1


FORTH COMING EVENTS

WEDNESDAY

18 JUNE

MONDAY

BRITCHAM AND UK-ID BUSINESS INTELLECTUAL PROPERTY BRIEFING 08.30 - 10.00 | Venue available on request

26 JUNE

BRITISH CHAMBER OF COMMERCE IN SINGAPORE (britcham.org.sg) WEDNESDAY

02 JULY

THURSDAY

10 JULY

JULY

03

EVENING PRESENTATION/ NETWORKING: MAKING THE EMOTIONAL CONNECTION WITH YOUR CLIENTS

TUESDAY

JULY

BRITISH CHAMBER OF COMMERCE IN MALAYSIA (www.bmcc.org.my/)

08

BMCC PUB NIGHT SERIES: QUIZ NIGHT

JULY

EVENING PRESENTATION/ NETWORKING: TECHNOLOGY IN MARKETING

15

THURSDAY

UK EVENT - POWER OF A GLOBAL NETWORK CONFERENCE, LIVERPOOL

JULY

16 JULY

THURSDAY

17 JULY

TUESDAY

BRITISH CHAMBER OF COMMERCE IN VIETNAM (www.bbgv.org/)

PHUKET BUSINESS DINNER

JULY

WEDNESDAY

BRITISH CHAMBER OF COMMERCE IN CAMBODIA (britchamcambodia.org)

08

08

THURSDAY

BREAKFAST CLUB: THE EMOTIONALLY INTELLIGENT LEADER – SUPERHERO OR NOT?

WEDNESDAY

30

01

YOUNG PROFESSIONAL GROUP BRIEFING WITH CIMA 18.00 - 21.00 | Venue available on request

TUESDAY

BCCT EASTERN SEABOARD BRIEFING (THAI POLITICAL SITUATION)

JULY

THURSDAY

TUESDAY

BRITISH CHAMBER OF COMMERCE IN THAILAND (members.bccthai.com) TUESDAY

EVENING PRESENTATION/ NETWORKING: TASTE

JULY

03

BUSINESS & SOCIAL GATHERING 18.00 - 20.30 | Venue available on request

10 JULY

• BCCT TWO-DAY WORKSHOP (SMART PRESENTATION SKILLS) • BCCT TWO DAY WORKSHOP (SMART MARKETING & COMPETITIVE STRATEGIES) • BCCT EVENTS GROUP MEETING • BCCT OVERSEAS BUSINESS NETWORK PROJECT STEERING GROUP MEETING • BCCT BOARD OF DIRECTORS MEETING • THIRD THURSDAY NETWORKING EVENING

TUESDAY

15 JULY

• BBGV BUSINESS CENTRE’S EVENT: DISCOVER HOW LOGISTICS COULD BENEFIT TRADE IN VIETNAM AND SOUTH EAST ASIA • BUSINESS THURSDAY: LEGAL INDUSTRY NIGHT BBGV BUSINESS CENTRE LUNCHEON HOW EFFECTIVE FACILITIES MANAGEMENT CAN ENHANCE ASSET VALUE, INCREASE EFFICIENCIES AND REDUCE COSTS

SATURDAY

19 JULY

BBGV 1ST INTER-COMPANY FOOTBALL TOURNAMENT FOR CHARITY IN HCMC

FRIDAY

BUSINESS BREAKFAST DIRECTOR’S LIABILITY BRIEFING

JULY

18

JOINT CHAMBERS EASTERN SEABOARD NETWORKING EVENING

JULY

For further information or to make a reservation, please contact events@britcham.or.id or call Tanya at +62 21 522 9453 For sponsorship, please contact salesmkt@britcham.or.id

OUR APOLOGY •

In Issue 1 - 2014, for IPSOS article titled “Achieving Successful Distribution in Emerging Markets” on page 28. We apologise for mistakenly cutting off the article mid-rift.

In Issue 1 - 2014, for Andrew Sutedja article titled “Is Indonesia In Human Resources Ready for the AEC 2015?” on page 40. We apologise for mistakenly including another article in the last four paragraphs.

Please find the corrected version of the issue online at our website www.britcham.or.id

2

issue 2 - 2014


CHAIRMAN’S MESSAGE

B

oth here in Indonesia and back in the UK we are seeing a series of elections that will shape the direction of both countries. The UK recently faced European (and local elections) with eurosceptic and nationalist parties performing strongly in what has been described across Europe as a ‘political earthquake’. The strong performance by a number of recently formed ‘anti-establishment’ parties has started a potential reshaping of politics across Europe as the mainstream parties suffered a backlash. If dismissed as a protest vote and not given attention then we may see further growth of both unrest and apathy given that less than half of those eligible to vote chose to do so. It is too early to see how things will shape up but it is clear that the general public is seeking a change to the current policies of the EU and sovereign governments that cannot be easily ignored. Turning to Indonesia we will see a straight run-off in the presidential race with a choice between JokowiKalla or Prabowo-Hatta led coalitions. No doubt there will be a lot of debate over the next few months and a rise in nationalistic rhetoric echoing what we saw in the run-up to the European elections. I hope that the voter turn-out is high and the opportunity to cast a vote and make a difference is taken, which it unfortunately wasn’t in the European election. For British businesses and potential investors the election brings a period of uncertainty but at least the July vote will now be decisive and so we avoid a further run-off and an even more prolonged period of campaigning and indecision. This means that the newly elected president and ruling coalition will have to wait around 4 months before they take over after the election. I hope that this time can be used wisely to select a strong and effective ministerial team that is drawn from the best candidates and not those of a favoured few. Ahead of the elections we had the long awaited announcement of the DNI – Negative list. Despite many promising signals that more opportunities may

be opened up to foreign investment and ownership, the eventual outcome offered little change and gave a sense of disappointment made greater by the optimistic rhetoric that came before it. Whether it will deter investment remains to be seen but it is likely that it will not enable the full potential of investment to be made. It may be that we are entering an era where nationalist interests are at the forefront and foreign ownership is less welcome. We have seen this in the UK (and Europe) with the recent elections and pushback on the Pfizer takeover of Astra Zeneca (and GE, Alstom) and we are seeing it here through regulation and the negative list. For business we can only hope that sensible decision making will prevail and that the growth and investment agenda continue to be an important part of the political agenda with business friendly policies at the forefront.

Adrian Short Chairman OFFICERS CHAIRMAN Adrian Short VICE CHAIRMAN Harun Reksodiputro HONORARY SECRETARY James Bryson HONORARY TREASURER Daniel Hankinson | SECTOR GROUPS CHAIRMAN OF ENERGY & NATURAL RESOURCES SECTOR David Braithwaite MBE CHAIRMAN OF H.R. DEVELOPMENT & EDUCATION David Knowles CHAIRMAN OF INFRASTRUCTURE Richard Michael CHAIRMAN OF FOOD, FORESTRY, FISHERIES & AGRICULTURE Roger Pinder | SECTOR COMMITTEES CHAIRMAN OF MEMBERSHIP SECTOR COMMITTEE Aziz Adam Sattar CHAIRMAN OF YOUNG PROFESSIONALS GROUP Andrew Sutedja CHAIRMAN OF PROFESSIONAL WOMEN COMMITTEE Sony Jethnani BOARD MEMBERS John Arnold OBE (Former Chairman), David Burke, Rob Daniel, John Galvin, Colin Harvey, Malcolm Llewellyn OBE (Former Chairman), Tonny Pranatadjaja, John Slack, Darwin Silalahi, Aziz Adam Sattar, Ainsley Mann, Anthony Cottan, Cynthia

World Trade Centre 5 / Wisma Metropolitan 1, 15th Floor Jl. Jend. Sudirman Kav. 29-31 Jakarta 12920 – Indonesia Phone +62 21 522 9453 Fax +62 21 527 9135 Email bisnis@britcham.or.id

Wihardja, Jeremy Kemp | EX OFFICIO Lizzy Hawkins – Director of UKTI, Sally Goggin – Director of British Council, Heru Dewanto – IABA, Maxi Gunawan - KADIN (CORRESPONDENCE FOR BOARD MEMBERS may be addressed to: info@britcham.or.id) | EXECUTIVE OFFICE EXECUTIVE DIRECTOR Chris Wren (chriswren@britcham.or.id) EXECUTIVE ASST Vaurhiany Febrina (administration@britcham. or.id) SALES & MARKETING COORDINATOR Annisa Putri Adisty (salesmkt@britcham.or.id) EVENTS COORDINATOR Tanya Wharton (events@britcham.or.id) EVENTS COORDINATOR Kheista Leoni (kishi@britcham.or.id) FINANCE OFFICER Daliana Tiono (finance@britcham.or.id) PUBLICATIONS Eva Karina (publications@britcham.or.id) OVERSEAS BUSINESS NETWORK DEVELOPMENT PROJECT DIRECTOR Vickie Fox (uksme@britcham.or.id)

www.britcham.or.id

www.britcham.or.id

3


EXECUTIVE UPDATE It is almost unbelievable that we approach the end of the first semester. So many people are saying how fast this year is passing – are we deluded? Or, in spite of everything, has the pace cranked up so much that there is no time to notice its passing? Certainly, at BritCham we are engaged on more fronts and with greater intensity. So, below are a few updates.

Chris Wren EXECUTIVE DIRECTOR

GBBI

After a number of false dawns and a great deal of frustration relating to the coordination of data verification. GBBI 2013/14 has now been distributed. All members should have now received it in both hard and soft copy. We hope it proves to be a useful tool to encourage and develop more intra-membership business. Whilst every effort went into negating errors and ommissions, there are a few. To those few affected, please accept our sincere apologies. It is our plan to dedicate one page in the next issue of Up.Date to highlighting corrected data. Please let me know if you need to be included in this page.

New members & BSG

As a first, we invited all new members from 2014 to join us as guests of our Board to the last Business & Social Gathering at the Mandarin last month. This proved to be successful in fast-tracking their networks within the membership. That BSG immediately followed a Board meeting and many Board members stayed on to get to know our newest members. We will repeat this at the right opportunity.

Overseas Business Networks

As a part of our role as an OBN, we are now confirmed to coordinate 4 trade missions in 2013 to March 2014. Many of the delegates are looking for business partners, agents, distributors and general streetwise guidance on ‘doing business’. This presents opportunities for our members and we will always try to network the opportunities among you, as appropriate. Up.Date now dedicates space to OBN developments and you can read more inside.

Second cities – outreach

As a response to our awareness that provinces/ cities/towns outside Jakarta also have their own development plans and therefore business opportunities, we recently concluded scoping visits to Makassar, Manado and Batam. Between the Embassy and BritCham, that means that we have together assessed the opportunities in more than 10 cities. An immediate outcome is that BritCham will take an active role in Bandung and Surabaya by appointing businessfolk and alumni resident in these areas who can act as

2-way channels of communication. Our purpose is to improve our visibility and to derive timely intelligence about business opportunities.

Business Confidence Index 2014 (BCI)

BritCham launched its BCI in 2012. The BCI was established as an annual survey when repeated last year. In challenging the Chamber to improve and maintain relevance, we are now committed to an expanded BCI 2014 by partnering with EuroCham and our other bilateral partners. Still led by BritCham, the BCI 2014 will survey 4 times as many businesses and will solicit sentiment relating to a wider range of sectors. The survey will be conducted in September with a joint presentation planned to the newly inaugurated ministries in November.

Professional Women Group and Young Professionals Group

I am pleased to advise that these have both been restructured and have established programmes for the rest of the year. Having just come away from a really vibrant PWG panel discussion, I can assure you that future events are not to be missed. Please keep an eye on News & Events for up-to-date events’ information.

Last, but definitely not least…

It is with mixed emotions that I announce the departure of our OBN Project Director, Vickie Fox and advise on the appointment of her replacement Karen Butterfield. Vickie has directed our partnership project from its inception last year. She has been a truly magnificent professional on dealing with many of the challenges associated with entering new territory. Karen inherits many well-conceived processes, an active order book for services and many strong relationships with UK stakeholders. Thanks a million Vickie and very best wishes for your future exploits.

Get In Touch

As always, I close by inviting members’ comments and suggestions regarding any aspect of your Chamber. Feel free to mail me directly: chriswren@britcham. or.id

EDITORIAL TEAM The Executive Office: chriswren@britcham.or.id, Eva Karina. DESIGN, LAYOUT Eva Karina DESIGN REFINEMENT & PRINTING One Asia Group UP.DATE is published by BritCham (British Chamber of Commerce in Indonesia). This publication may not, in whole or part, be lent, copied, photocopied,

reproduced, translated or reduced to any electronic medium or machine readable form without the express written permission of the publisher.

4

issue 2 - 2014



EVENTS

GIVING KIDS A SPORTING CHANCE CHARITY NIGHT WITH STEVEN FABES Monday, 17 March 2014 | 18.30 – 20.30 Mercantile Athletic Club, Jakarta This was a Special Networks Gathering / fundraising evening in support of BritCham’s “Giving Kids a Sporting Chance” as we had the pleasure of having Steven Fabes, a British doctor, whose goal is to cycle round the 6 continents. The evening was held at the Mercantile Athletic Club and participants were able to enjoy a set course meal along with wines and beer. Originally it was planned for a gathering-like event, but decided to change it to a sit down dinner where participants were able to ask questions on a more intimate level. Steve gave a talk on his remarkable adventure and showed his video on what he had to go through during his trip. He is now nearing the end of his epic journey that has seen him, to date, cycle an incredible 60,100 km across five continents. Asia is Steve’s final continental destination. He hopes to be home in the UK sometime in 2016. We would like to thank our sponsors, AIG, AEGON, International SOS, and Willis, who has made the night a success and all money raised were split between GKSC and Steve’s charities. Sponsored by:

(Left to right): Chris Wren, Executive Director of BritCham, Simon McCrum, Willis Indonesia, Steven Fabes, John Arnold, Arghajata, Geoff Simms, Aegon.

(Left to right): Steven Fabes, Cycle the 6, John Arnold, Arghajata, and Chris Wren, Executive Director of BritCham.

6

issue 2 - 2014

(Left to right): Steven Fabes, Cycle the 6, Robbie Stone, Ipsos


BUSINESS & SOCIAL GATHERING Thursday, 27 March 2014 | 18.00 - 20.30 Oakroom, Oakwood Premier Cozmo, Jakarta

This month’s Business & Social Gathering was held at the Oakroom in Oakwood Premier Cozmo. They have recently opened a brand new meeting room in the restaurant which was showcased by Malcolm Hines, the General Manager of Oakwood Premier Cozmo.

Adrian Short, BritCham’s Chairman , Rolls Royce and Chris Wren, BritCham’s Executive Director.

The door prizes for the night consisted of dining voucher worth for IDR 500,000 from Qraved.com, High tea packages voucher for 2 persons from Colonial Cuisine & Molecular and a one night stay at a one suite room from The Grove Suites. Last but not least we would like to say a big thank you to AGS Four Winds, our exclusive sponsor for the night!

(Left to Right): Robert Daniel, PwC, Nick Elliot, Komunika Partners, and Tim Supple, Equatorial Management Consulting Services.

Sponsored by:

Deepak Chainani, MWS and Adrian, Qraved.

D Roger Smith, PT Niche Placements, and Melbourne, Melbourne the Photographer.

www.britcham.or.id

7


EVENTS EVENTS

EUROPEAN JOINT GATHERING (IFCCI) Wednesday, 23 April 2014 | 18:30 – 21:00 Jimbaran Garden, Intercontinental Hotel Jakarta On Wednesday, 23 April 2014 - IFCCI had the honour to lead our second joint cocktail gathering this year. IFCCI in collaboration with BritCham, EKONID, INA, and EuroCham, the gathering attracted more than 200 participants who were able to enjoy the famous French cheese and wine specially provided by the host. The gathering took place at the tropical Jimbaran Garden, Intercontinental Hotel Jakarta, where participants could relax while spending their networking time. Our thanks to the sponsors, Jakarta Serviced Office, Safeway Relocations, Santa Fe, Provinsi Kepulauan Riau, ABUMAS Group and Royal BAM Group for the support!

Alain Pierre Mignon, Chairman of IFCCI and Deborah Aryanti, IFCCI

In association with:

Sponsored by: (Left to Right): Jakob Friis Sorensen, EUROCHAM, Elmar Bouma, INA, and Alain Pierre Mignon, Chairman of IFCCI.

(Left to Right): Jan Ronnfeld, EKONID, Elmar Bouma, INA, Alain Pierre Mignon, Chairman of IFCCI , Adrian Short, Chairman of BritCham, President Director of Rolls Royce, and Jakob Friis Sorensen, EUROCHAM.

Tanya Wharton, BritCham, Charles Maynard, UBS Investment Bank, William Simon, GDF Suez Energy Indonesia, Joost William Weterings, Swire Shipping

8

issue 2 - 2014

M. Iqbal Hadromi, Hadromi & Partners and Zaen Isnaeni Adnan, Hadromi & Partners


TROWERS & HAMLINS / JLL – PROPERTY INVESTMENT IN UK SEMINAR Thursday, 24 April 2014 | 09:30 – 12:30 Tanjung Rasamala Room, Mandarin Oriental Hotel Jakarta

Tiiu Morris, the Deputy Director of UK Trade and Investment, British Embassy Jakarta, Erik ten Have, OneUser Group, Will Bright, General Manager ofJakarta Land

BritCham was pleased to have organised a Property Investment in the UK Seminar on 24 April 2014 in Mandarin Oriental Hotel, Jakarta. This event was hosted by one of the largest international law firms based in London, Trowers and Hamlins, in association with Jones Lang Lasalle Singapore, a global real estate service firm specialising in commercial property management, leasing, and investment management. Covering specific topic such as how to manage the commercial and legal aspects of property acquisition in the UK, this seminar was exclusively attended by 40 participants who were interested in investment in to UK real estate. Nick White, the Regional Manager based in the firm’s Kuala Lumpur representative Regional Office, made his opening statement before our three keynote speakers, David Green-Morgan and Doris Tan from JLL Singapore, and Nicholas Edmondes from Trowers & Hamlins. The speakers explained in detail what was needed when looking for a property, considering its value, and finally getting to a deal, as well as provided an informative and practical overview of the legal issues involved in an acquisition.

Richard Michael, Executive Vice President, Infrastructure Finance.

(Left to Right): Kieran O’Flynn, Senior Manager Capital Markets, JLL, Will Bright, General Manager ofJakarta Land

The seminar was joined by Tiiu Morris, the Deputy Director of UK Trade and Investment, British Embassy Jakarta, and BritCham’s Board Member, Richard Michael from Indonesia Infrastructure Finance.

www.britcham.or.id

9


EVENTS

ACCA – CEO/CFO ROUND TABLE Friday, 25 April 2014 | 09:00 – 12:00 Krakatau Room, Grand Hyatt Hotel Jakarta ACCA (the Association of Chartered Certified Accountants), in collaboration with Ikatan Akuntan Indonesia (IAI) / Indonesian Institute of Accountants, held a CEO/CFO Round Table on Friday, 25 April 2014 in Grand Hyatt Jakarta.

(Left to right) Jan Hoesada, Council Member Indonesian Financial Services Authority and Deny Poerhadiyanto, Director, IAI

The seminar focused on encouraging CEO/CFOs to think forward as well as act as the innovators in their companies. Mr. Mulyadi Setiakusuma, Head of ACCA Indonesia, officially opened the seminar and mentioned his expectation on bringing positive changes not only to the companies, but more importantly, to ourselves. Moderated by Mr. Jan Hoesada, Board Member of the Financial Services Authority, the two speakers were Mr. Kurniadi Atmosasmito, Chief Financial Officer of PT Kereta Api Indonesia (KAI) and Mr. Sudimin Mina, Director of Genuine Initiative Software of Microsoft Indonesia. The first session invited Mr. Kurniadi Atmosasmito to share the success of PT KAI in minimizing the cost and allocating resources for comprehensive services for their customers by doing long term investments and capacity planning. Later on, Mr. Sudimin Mina demonstrated the importance of Information Technology in this era of globalization as an investment to develop their business as well as career in a very interesting and fun session. The CEO/CFO Round Table also engaged most of the participants in an interactive question and answer session, which has enriched the perspectives and knowledge of the participants. This collaboration was expected to bring more substantial and practical impacts, especially for accountants as well as financial experts.

Mulyadi Setiakusuma, Head of Indonesia - ACCA

(Left to right) Jan Hoesada, Council Member Indonesian Financial Services Authority, Kurniadi Atmosasmito, Finance Director, PT. KAI.

Sudimin Mina, Director of Genuine Initiative Software, Microsoft Indonesia

(Left to right) Jan Hoesada, Council Member - Indonesian Financial Services Authority, Kurniadi Atmosasmito, Finance Director, PT. KAI, Mulyadi Setiakusuma, Head of Indonesia, ACCA, Sudimin Mina, Director of Genuine Initiative Software, Microsoft Indonesia, and Deny Poerhadiyanto, Director, IAI.

10

issue 2 - 2014


EVENTS

BUSINESS & SOCIAL GATHERING Tuesday, 29 April 2014 | 18:00 – 20:30 Lagoon Lounge, Sultan Hotel Jakarta

Chris Wren, Executive Director of BritCham, Yulia Miranti, Manager Marketing & Communications - Colliers International Indonesia, Glen Stidolph, Director of 3Lions Sport, and Adrian Short, Chairman of BritCham , President Director of Rolls Royce

Mr. Josef Umenberger, the Executive Chef of The Sultan Hotel & Residence Jakarta and Lisia Wijaya, Colliers International Indonesia.

Adrian Short, Chairman of BritCham , President Director of Rolls Royce and Andrew Goldman, Cohn & Wolfe.

(Left to right) Lisia Wijaya and Connie Nurhayati from Colliers International Indonesia, Elliot Hawkins, Cushman & Wakefield, and Tanya Wharton, BritCham

(Left to right) Peter Klestov, Indonesian Rugby, Jack Hanafi, Allied Pickfords, Stephen Barber, Indonesian Rugby, and Mark Manderson, Allied Pickfords.

The last BSG was held on 29 April 2014, in the Lagoon Lounge of Sultan Hotel. Entertained by a beautiful live piano music in the background, more than 80 participants enjoyed the buffet and free flow drinks in a warm and friendly atmosphere. Our biggest thanks to our sponsors: Sultan Hotel, Colliers International and Allied Pickfords for helping us deliver such a wonderful evening.

Tiiu Morris, the Deputy Director of UK Trade and Investment, British Embassy Jakarta and Sony Jethnani, Sony Jethnani Consulting.

Sponsored by:

Lakshman T Perera, The Sultan Hotel and Residence Complex, Alistair Speirs OBE, Phoenix Communication, Wendy Kusumowidagdo, Outward Bound Indonesia, and Nick Elliot, Komunika Partners.

www.britcham.or.id

11


EVENTS

BRITCHAM Annual General Meeting 2014 Wednesday, 30 April 2014 | 11.00 – 14.00 | JW Marriott Hotel

Chris Wren, BritCham’s Executive Director, Daniel Hankinson, HSBC, BritCham’s Hon. Treasurer, Adrian Short, BritCham’s Chairman , Rolls Royce, James Bryson, HB Capital Indonesia, BritCham’s Hon. Secretary.

This year’s Annual General Meeting was also attended by Mr. Mark Canning, the British Ambassador to Indonesia, who made his last speech as he stepped down after several years of excellent service in Indonesia.

The 2014 Annual General Meeting, which was held at the end of April, has marked the official transition of the Board Members. We are proud to announce that the four new members elected were Mr. Ainsley Mann – Chief Representative of Swire Properties, Mr. Anthony Cottan – Director of PT. Mitra Adiperkasa, Mrs. Cynthia Wihardja – Director of ActionCoach, and Mr. Jeremy Kemp – Founding Partner of One Asia Group. Led by Mr. Chris Wren, Executive Director of BritCham, the meeting discussed significant improvements made one year back. These reports were presented by Mr. Adrian Short as the Chairman, Mr. Daniel Hankinson as Honorary Treasurer, and Mr. James Bryson as Honorary Secretary.

Adrian Short, Chairman of BritCham , President Director of Rolls Royce.

This year’s Annual General Meeting was also attended by Mr. Mark Canning, the British Ambassador to Indonesia, who made his last speech as he stepped down after several years of excellent service in Indonesia. Under his leadership, the UK Embassy has been very collaborative and accessible, which has made the business and investment between the UK and Indonesia a robust one. We wish him good luck and best wishes in his future endeavors, and the same to the newly elected Board Members.

H. E Mark Canning CMG, British Ambassador to Indonesia

12

issue 2 - 2014


Juliette Williams, Technical Advisor Business Development, Castle Asia.

H. E Mark Canning CMG, British Ambassador to Indonesia, Lizzy Hawkins, Director of Trade & Investment UKTI and Chris Wren, Executive Director of BritCham Indonesia.

Tribudi Widodo, Business Center Manager of Llyoyds Register Indonesia - LRQA and Midonal, SH, M.Kn

Scott Younger, Director of Nusantara Infrastructure during the Q & A session with H. E Mark Canning CMG, British Ambassador

The Board Member of BritCham with H.E Mark Canning CMG, British Ambassador to Indonesia. BritCham Members voted for the new Board.

MT Rajah, General Manager of Kelly Express and Tanya Wharton, Event Coordinator at BritCham.

(Left to right): William Daniel, Efficient English Services, James Bryson, President Director of HB Capital Indonesia, Honorary Secretary of BritCham, Adrian Short, President Director of Rolls Royce, BritCham’s Chairman, Chris Wren, Executive Director of BritCham, Andrew Sutedja, Chairman of Young Professionals Group, Sony Jethnani, Sony Jethnani Consulting, and John Slack, Commissioner, Jakarta Setiabudi Internasional.

H. E Mark Canning CMG, British Ambassador to Indonesia with BritCham’s Board Member.

www.britcham.or.id

13


EVENTS

Cocktail Evening with CIMA Monday, 12 May 2014 | 17:30 – 20:00 Grand on Thamrin Ballroom 3, Pullman Hotel Jakarta On Monday, 12 May 2014, BritCham in association with Chartered Institute of Management Accountants (CIMA) invited top CFOs, Directors and Vice Presidents of Accounting and Finance, for an exclusive networking cocktail at Pullman Thamrin Hotel. It was an exciting evening where participants were able to expand their network, and at the same time, exchange ideas and experiences in managing the dynamic world of accounting and finance. During his opening speech, Chris Wren, the Executive Director of British Chamber of Commerce in Indonesia, specially announced the Chartered Global Management Accountant (CGMA) as BritCham’s Sustaining Partner as well as an exclusive sponsor for Young Professional Development Events. Before the network session, Andrew Harding, FCMA, CGMA, Managing Director of Chartered Institute of Management Accountants, symbolically presented CGMA pins as an appreciation to companies or organisations who have been CIMA members for more than 10, or even 15 years. The evening cocktail was also joined by Irene Teng, CIMA Regional Director for South East Asia & Australasia.

Andrew Harding, FCMA, CGMA, Managing Director of Chartered Institute of Management Accountants

(Left to right) Irene Chan, Christoper Chan, and Greg W. Tan from Gajah Tunggal

Chris Wren, Executive Director of BritCham during his speech.

(Left to right) Daniel Hankinson, HSBC, BritCham’s Hon. Treasurer, Chris Wren, Executive Director of BritCham, Andrew Harding, FCMA, CGMA, Managing Director of Chartered Institute of Management Accountants, Irene Teng (Regional Director, South East Asia and Australasia), Venkkat Ramanan, CIMA, and Aziz Adam Sattar, QBE Pool Indonesia.

Andrew Harding, FCMA, CGMA, Managing Director of Chartered Institute of Management Accountants with Mark Hedge, Finance Director at Menarini Indonesia

14

issue 2 - 2014

Irene Teng (Regional Director, South East Asia and Australasia), Andrew Harding, FCMA, CGMA, Managing Director of Chartered Institute of Management Accountants, Venkkat Ramanan, CIMA, Tanya Wharton.


EVENTS EVENTS

Overseas Business Network (OBN) at The British Chamber of Commerce Annual Conference, London BritCham Indonesia representatives have just finished touring the UK region to engage with high-level activities as part of the Overseas Business Network Project (OBN). In the attendance: Chris Wren (Executive Director), Vickie Fox (OBN Director), Dhini Puspitasari (OBN Marketing Communications) and other ASEAN Chamber representative from Thailand, Malaysia, Singapore, Cambodia, Burma, and Philippine. The meetings were held on March 31st – April 4th. An intensive series of meetings began with visiting UK-ASEAN Business Council (UKABC) in UKTI Head Quarters based in London led by Chris Southworth, Executive Director - Global Partnerships, British Chambers of Commerce and Ross Hunter, Executive Director, UKABC. The purpose of this meeting was to discuss UKABC’s bilateral relationship with ASEAN British Chambers of Commerce, and also how to develop better coordination between the British Chambers of Commerce and UKTI. We were welcomed at The Houses of Parliament by Mike Weatherley MP to attend a meeting with the

BISEA Chambers having a meeting inside the House of Commons

The British Chambers of Commerce Annual Conference 2014

Meeting with All Party Parliamentary Group (APPG) on ASEAN at House of Commons. (From left to right) Hastin Dumadi, Economic Dept, Indonesian Embassy, Dhini Puspitasari, Marketing Communications, BritCham OBN, Mike Weatherley MP, All Party Parliamentary Group on ASEAN Chairman, Chris Wren, Executive Director, BritCham, Vickie Fox, Project Director, BritCham OBN

All Party Parliamentary Group (APPG) for ASEAN. He is a British Conservative Party politician who is the Member of Parliament (MP) for Hove in East Sussex also takes the lead as APPG ASEAN Chairman. This main purpose of the meeting was for Mike Weatherley MP to understand how the OBN is developing, to understand how the APPG can further assist the OBN Chambers in ASEAN, and to seek assurances of assistance for the APPG when it leads the Trade Mission Delegations to the region. BritCham Indonesia also managed to visit the Indonesian Investment Coordinating Board (BKPM) / Indonesian Investment Promotion Centre (IIPC) Office in London. This meeting was led by J.S. Meyer Siburian, Head of IIPC. In addition to explaining the changing role of BritCham in context of the OBN, we also shared our UK promotion activities. We agreed to work together in the future on promoting Indonesia in the UK. The highlight of this trip was attending The Annual British Chambers of Commerce Conference on April 1st at the QEll Conference Centre in London. This was led by speakers such as Rt Hon Ed Balls MP (Shadow Chancellor of the Exchequer), Lord Mandelson (Chairman, Global Counsel and former Secretary of State), Rt Hon Dr Vince Cable MP (Secretary of State

www.britcham.or.id

15


for Business, Innovation and Skills), Rt Hon Michael Gove MP (Secretary of State for Education), Rt Hon Michael Gove MP (Secretary of State for Education), Rt Hon Philip Hammond MP (Secretary of State for Defence), Lord Adonis (Opposition Spokesperson for the Treasury), Karren Brady (Vice Chairman, West Ham F.C and Michael Gove MP, Secretary of State for Education ) and John Longworth (Director General, British Chambers of Commerce)

You told us you wanted more help with export so we strengthen the Chambers overseas. We make sure UKTI have all of the resources they need and in the budget we doubled the amount to help you export”. He is a British Conservative politician, the Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom.

‘State of the Nation – Good to Great’ was the theme which billed Britain’s best ‘B2P’ – business to politicians. Key points were; How can we rebalance the UK economy towards sustainable exports and investment? How can British firms compete in the global race? What should Britain’s place in Europe be? What infrastructure does business need to grow and thrive, both at home and abroad? And how can we ensure that the workforce of today and tomorrow have the right skills to grow our economy?

We finalised the first week of promoting Indonesia in the UK by visiting Stoke-onTrent, Manchester, and Suffolk Chambers of Commerce for meetings with Regional Chambers, International Trade Advisors (ITA), UKTI and companies.

This high-profile event brought together key representatives from the Chamber Network as well as the wider business community, giving them the opportunity to network, discuss prospects for the UK economy, and to influence the country’s key policy-makers. “Look at the export aspiration instead of export desperation. The Challenge that the government is facing at the moment is to believe in exporting. We will have to rebuild the economy if export does not succeed” Rt Hon Dr Vince Cable MP said in his speech.

At the BCC Annual Conference 2014 – one of the excellent speakers Rt Hon Dr Vince Cable MP (Secretary of State for Business, Innovation and Skills)

(George Osborne MP message to the Conference participants) “I wanted to use this opportunity to thank John Longworth and all of the members of Chamber of Commerce for their huge input for the most recent budget and all the things that the government have done to support the business in this country. Overseas Business Networks from Indonesia and Thailand meeting with North Staffordshire Chamber of Commerce & Industry, Stoke-on-Trent, April 3rd

Overseas Business Networks from Indonesia, Thailand, and Philippines meeting with North Staffordshire Chamber of Commerce & Industry, Stoke-on-Trent, April 3rd. Photo by: The Sentinel

Overseas Business Networks from Indonesia, Philippines and Thailand meeting with Greater Manchester Chamber of Commerce, Manchester, April 3rd

“Look at the export aspiration instead of export desperation. The Challenge that the government is facing at the moment is to believe in exporting. We will have to rebuild the economy if export does not succeed.”Rt Hon Dr Vince Cable MP on his speech.

16

issue 2 - 2014


EVENTS EVENTS

UK-ASEAN Business Council UK Roadshow Sizzling Southeast Asia: Unlock Your Business Potential In Asean 7 - 11 April 2014

Having completed the first week in the UK, OBN representatives Vickie Fox (OBN Director), and Dhini Puspitasari (OBN Marketing Communications) participated in the UKABC Roadshow to five cities in UK which included Leeds, Huntingdon, Leicester, Birmingham, and Bristol. There were also OBN and UKTI representatives from Burma, Cambodia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The purpose of the roadshow was to provide a comprehensive toolkit of information and guidance; helping the UK SME clients gain practical advice and make connections with OBN representatives and UKTI. In every city the daily events were opened by a plenary session to listen to UK companies that have successfully exported to the region and also to hear the availability of the support from government. The programme was then followed by one-to-one meetings, roundtables, and networking opportunities whereby the UK SME clients had the chance to find further information out on their target countries. In every city we gave the UK SMEs an overview about Indonesia to help them learn about the ASEAN Region, gain specific market advice on each of the Southeast Asian countries from a number of sources (the Chambers’ OBN and UKTI) BritCham had meaningful dialogues with over 70 companies who had an interest in the Indonesian market. Sectors ranged from Agriculture, Education and Training, Healthcare, Mechanical Electrical and Process Engineering, and Oil and Gas.

The UKABC Roadshow participants (left to right): Ben Raby, UKTI Deputy Director, Thailand , Vickie Fox, Project Director, BritCham Indonesia Overseas Business Network, Lisa Weedon, UKTI Director, Burma, Iain Mansfield, UKTI Director, Philippines, Piers Craven, Head of UKTI, Vietnam, Steve Hill, UKTI Deputy Director, Malaysia, Dhini Puspitasari, Marketing Communications, BritCham Indonesia Overseas Business Network, Ross Hunter, Executive Director, UKABC, Amita Krishna, Project Director, BritCham Malaysia Overseas Business Network, Barry Nicholson, Project Director, UKTI/BCCT Overseas Business Network, Judi Leon, UKTI Deputy Director, Singapore, Jeffrey Lamb, Head of UKTI, Cambodia, Helen Etheridge, Head of Marketing & Event, UKABC, Martin Gower-Smith, STI Ltd, Greg Limb, Events Executive, UKABC. Photo by: UKABC.

From top to bottom: Snapshots of UKABC Roadshow 7 - 11 April 2014. Photo by: UKABC.

www.britcham.or.id

17


BANKING & FINANCE

HSBC Purchasing Managers’ IndexTM Press Release Embargoed until: 10:00 (Jakarta), 2 June 2014

HSBC Indonesia Manufacturing PMITM PMI reaches survey record in May, as new order growth gains further momentum Summary Manufacturers across Indonesia signalled a further improvement in operating conditions during May. A survey-record rise in new orders led companies to scale up production, pushing the PMI to its highest reading in the history of the series. On the price front, both input costs and output charges increased at weaker rates that were also below their respective series averages. Adjusted for seasonal factors, the HSBC Purchasing Managers’ IndexTM (PMITM) registered 52.4 in May, up from 51.1 in April and above the neutral 50.0 threshold for the ninth consecutive month. Furthermore, the latest reading indicated that operating conditions improved at the quickest rate in the survey history. Reflective of strengthening demand conditions, output at Indonesian manufacturers rose in May. Growth of production was solid and the jointfastest in the series history (on par with October 2011). Moreover, the latest increase ended a two-month sequence of reduction. May data indicated that new orders placed with Indonesian manufacturing firms rose further, marking an eight-month period of expansion. Furthermore, incoming new work increased at a robust pace that was the most pronounced since data collection began in April 2011. Anecdotal evidence highlighted stronger demand and the successful launch of new product lines. New business from abroad increased for the fifth successive month in May, amid reports of higher demand from key export clients. Although slight, the rate of expansion was the fastest in one year. In line with strong new order growth, input buying rose in May. Furthermore, quantities of purchases increased at a marked pace that was the quickest in one-and-a- half

18

issue 2 - 2014

years. Subsequently, pre-production stocks were accumulated at the fastest rate in 33 months. Holdings of finished goods also expanded, albeit marginally. Amid evidence of higher prices paid for metals, plastics, paper, textiles, food and energy, average purchase costs faced by Indonesian goods producers continued to increase in May. That said, the overall rate of cost inflation moderated to the weakest in 11 months and was below the series average.

that the policy-induced slowdown in domestic activity is starting to bottomout.” Key points ■■ Incoming new work increases at strongest pace in series history ■■ Solid expansion of output volumes ■■ Faster rise in purchasing activity Historical Overview

Concurrently, factory gate charges were raised further in May. The rate of inflation was, however, the slowest since August last year, weaker than the series average and well below that seen for costs. Meanwhile, payroll numbers fell in May, following a marginal increase seen one month previously. Where employment declined, this was linked by survey respondents to the nonreplacement of voluntary leavers and, to a lesser extent, shortages of skilled labour. Comment Commenting on the Indonesia Manufacturing PMITM survey, Su Sian Lim, ASEAN Economist at HSBC said: “The record-high print in the May PMI appears to have come on the back of a broad-based improvement in domestic activity. Although new export orders expanded, growth of overall new orders was also at a record high, suggesting that domestic orders were an even larger factor behind the strong PMI reading. Various other indicators such as work backlogs also recovered marginally, suggesting that the slack in capacity experienced by firms these past few months may be starting to narrow. Against this backdrop both input and output price inflation continued to cool. In the months ahead, a persistence of the trends seen in the May PMI would signal

About Markit: Markit is a leading global diversified provider of financial information services. We provide products that enhance transparency, reduce risk and improve operational efficiency. Our customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies. Founded in 2003, we employ over 3,000 people in 11 countries. For more information please see www.markit.com About PMIs: Purchasing Managers’ Index™ (PMI™) surveys are now available for 32 countries and also for key regions including the Eurozone. They are the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to www.markit.com/economics The intellectual property rights to the HSBC Indonesia Manufacturing PMI™ provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are trade marks of Markit Economics Limited, HSBC use the above marks under license. Markit and the Markit logo are registered trade marks of Markit Group Limited.


www.britcham.or.id

19


BANKING & FINANCE

Personal Finance

INVESTING IN A GREENER PLANET

In the wake of a UN report warning of the dire consequences of climate change I was fortunate to have the opportunity recently to visit a remote part of the world where positive action is being taken to reverse the devastation that is being inflicted on the world’s natural environment.

20

on the ground or from the air of the vast swathes of such plantations that have replaced many of the rainforests in South-East Asia and elsewhere. But the focus of my trip was on bamboo, considered to be the most eco-friendly alternative to conventional timber.

The extraordinary qualities of bamboo

The location was Nicaragua, a small Central American country bordering both the Pacific and Atlantic Oceans which are separated by just a five hour drive. Despite its relatively small size and a population of just six million the country is home to the largest rainforest north of the Amazon, the largest lake in the Central American region, 28 volcanoes and 22,000 square kilometres of natural reserves. As it has a similar climate you could easily be mistaken to think you were still in Indonesia.

Cutting down trees results in areas devoid of biodiversity as well as exposing soil to the elements. In contrast, bamboo is technically not a tree but a member of the grass family and just a portion can be harvested annually so that a continuous canopy cover can be maintained, thus preserving a healthy soil. Furthermore, whereas a hardwood tree needs 15 to 30 years to become harvestable, bamboo can be harvested within 5 to 7 years of planting. And unlike a hardwood tree a single clump can continue to be harvested every year for decades to come. As for efficiency, one acre of bamboo can provide sufficient wood to build a 1,000 square foot house whilst it would take 12 acres of forest to build the same house.

Whilst I observed a few small palm oil plantations there was no evidence

Timber replacement is not the only function of bamboo. The fibre of certain

issue 2 - 2014

Colin Bloodworth of PPI Indonesia, has spent over 20 years in Indonesia. If you have any questions on this article or related topics you can contact him at colin.bloodworth@ppi-advisory.com

bamboo species has qualities that make it highly suitable in the production of paper that requires a mixture of strength and softness. Part of the bamboo can be processed to produce activated carbon, a product that is used to remove pollutants from both liquids and gases. Bamboo fibre can also be converted into fuel products, representing a carbon neutral and sustainable form of energy. Once processed on site the fuel can be easily exported in the form of pellets.

How bamboo addresses environmental issues Bamboo can restore biodiversity to degraded land and as it grows rapidly it is the most sustainable form of biomass on the planet. Certain species can tolerate relatively poor soils making bamboo perfect for the restoration and reforestation of degraded land. It aids in water absorption, firmly holds soil in place and protects against soil erosion. It is one of the best plants for carbon extraction and can remove up to 800 tons of CO2 from the air per hectare over a 10 year period. The plantations belonging to EcoPlanet Bamboo, the company I visited, covered over 7,000 acres on three sites, all of


them close to networks of rivers to facilitate exporting, principally to the US. The terrain was rough so horseback was the main mode of transport. It was at least a pleasant change from sitting in Jakarta traffic jams. While most of the bamboo had been planted over the past two years on degraded land I was shown a vast area of unspoilt rainforest and told this too would shortly be planted with bamboo. But no trees would be cut down; bamboo can be planted among the trees and can

workers initially refused to work with them. Management stood firm, the workers backed down and now happily accept their female leaders. In their Managua office our group met a well-qualified lawyer who had no arms or legs. Impressively he wrote a letter of welcome for us using his two short stumps. Being welfare conscious does not mean the business should suffer. A profitable operation is essential if the enterprise is to be successful

the company I visited is an Isle of Man regulated fund. Even relatively small retail investors can access the fund either directly or via life company platforms. The fund has benefitted to date from independent valuations but the full value should be realised in a few years’ time when bamboo from thousands of new plants is harvested and comes to market. Insurance is in place that covers a wide range of risks. As with any alternative fund offering high potential returns, I would exercise

Very simply, the acquisition of land and the planting of bamboo and construction of facilities require a significant level of investment money. This invariably falls on the private sector. ... Insurance is in place that covers a wide range of risks. As with any alternative fund offering high potential returns, I would exercise caution and say that it is appropriate only for experienced investors. grow in harmony with other species, particularly where the selected type of bamboo has roots which remain within the clump and do not spread and encroach on other plants. The result is a complete opposite of the more familiar and destructive scenario where land is cleared for planting with no consideration for the impact on the environment. The company goes a stage further and sets aside 20% of each plantation for conservation.

The green philosophy goes further than just plants

so quality and high standards of workmanship are demanded. There is no room for slackers; those not pulling their weight are told they are depriving people who want to work from doing so.

So how does this story relate to Personal Finance? Very simply, the acquisition of land and the planting of bamboo and construction of facilities require a significant level of investment money. This invariably falls on the private sector. A major investor in

caution and say that it is appropriate only for experienced investors. Big losses are possible if things go wrong but at the same time high returns can only be achieved by accepting a degree of risk. But risks must be spread and all the eggs must not be put in one basket. The company also has a plantation in South Africa and is looking at the Philippines and Indonesia, specifically Kalimantan. For those willing to take the risk, investing in the environment can be profitable and everyone can be a winner, including Mother Earth.

The company recognises that it must engage its employees and the community if it is to be successful. The plantations allow the creation of attractive and stable jobs in areas of abject poverty. The company provides access to healthcare and education and works closely with the local community. The president of the company does not sit in an ivory tower and ride around in luxury cars. He has a hands-on approach and spends much of his time on the plantations and works closely with the local communities. The company believes in empowering women and the disabled. When two women were appointed as plantation managers

www.britcham.or.id

21


BUSINESS & ECONOMICS

CSR and Sustainable Livelihood

(This article was published on Printed Edition of Kompas in “Kompas KLASS” on December 13, 2013)

Companies in Indonesia that are doing CSR holistically could still be counted using fingers, which amount does not even reach five companies. Based on its difficulties, there are several CSR activities that can be done by a company. These activities cover philanthropy, community development, bearing the cost of the negative impact (internalizing externalities), making CSR as company 22

issue 2 - 2014

culture (holistic CSR), and creating a sustainable livelihood for people (sustainable livelihood). Practice of holistis CSR One of few companies in Indonesia that executed CSR holistically is Unilever. Unilever apply CSR from upstream to downstream, starting from the policy-making of Unilever Sustainable Living Plan (USLP), which scope of the CSR starts from individual level to company level. A lot of lesson could be learned from the CSR activities done by Unilever; such as CSR is a business investment that could improve the company image and give the company a reversion in form of increment of company’s brand, profit, and stock price. Based on the CSR from upstream

Maria Rosaline Nindita Radyati, Ph.D has been teaching at Economic Faculty, Trisakti University for over 22 years. She is the Founder and Program Director of MM-­‐CSR (Master Degree Program with Specialization in Corporate Social Responsibility) and MM-­‐CE (Master Degree Program with Specialization in Community Entrepreneurship) at Trisakti University. Currently, she is the Director of Center for Entrepreneurship, Change, and Third Sector (CECT-­‐ USAKTI) (www. cect-­‐usakti.org), a research centre under the Postgraduate Program at Trisakti University.

to downstream in SIPOC, Unilever starts by developing a policy called Unilever Sustainable Agriculture Code, and training their supplier. For “Kecap Bangau” product, around 7.000 farmers are involved in a black soybean cultivation programme since 2001. The result for the company is the availability of best quality of raw materials, black soybean. On the other hand, farmers gain a significant economic growth because Unilever buys their soybean harvest with a decent price. Besides, they are trained by Unilever’s partner to establish farmer union. Supplier training is also done for the tea, coconut, and sugar farmers. In addition, the product produce by the supplier obtains Roundtable Sustainable Palm Oil (RSPO) certification for palm oil, and Sustainable Tea for the tea product. Because of its achievement in maintaining sustainability of


supply, Unilever placed fourth rank in the world in Gartner Supply Chain Excellence, rank for company that maintain the best supply chain, in 2013. Beside that, the CSR activities done by Unilever placed second as an activities leading to the food justice by Oxfam. On the Input or resources aspect, especially human resources, Unilever focus to improve occupational safety and health (OSH). Beside that, the employees are motivated to live a more healthy life by holding sports competition, through “Fun Vitality” programme. By looking at the company’s profit, there is a significant rise by 16 percent compare to the previous year, which reflect the improvement of productivity level. On the production process aspect, Unilever try to reduce their water usage through recycled technology, accommodating and using rain, and other technologies, such as utilising water that flowing from cauldron and cooling tower, in order to reduce wasteful water consumption to zero. Thus, bringing a contribution in environment sector as well as reducing production cost significantly. In terms of output, the company realise that used product packaging creates a lot of garbage. Therefore, Unilever inaugurate housewives in several cities such as Yogyakarta, Surabaya, Makassar, Bandung, and Medan to utilise a used product packaging into bag, umbrella, wallet, etc., which realise in a brand called TRASHION that then became a hit. Through the programme, there are more than 700 jobs created and 73 female entrepreneurs were born. To facilitate the availability of used packing supply, Unilever develop a programme, Garbage Bank Union, which amount reached more than 390 now. Unilever also has a special division to handle the consumer, which called

Customer Innovation and Insight Centres (CiiCs). Unilever encourage its consumer to work on together in formulating a product packaging strategy and another strategy that leads to sustainable business practices. There is also Consumer Goods Forum, designed to make an agreement in contributing to the sustainability of development, for example through the prevention of forest destruction. To quickly response consumer complaints, Efficient Consumer Response (ECR) Centre was established. In the individual level, rules are made at the office where air conditioning should be turned off at 7 pm and all lights should be turned off at 8 pm. In addition, employees planted trees around the office to reduce carbon footprint. The result of Unilever’s holistic CSR is its benefit for the public, local governments and enterprises. Unilever was able to create a sustainable livelihood for farmers. People have become independent farmers that are able to produce agricultural products that are internationally certified. If at any time the crops are abundant, farmers could take advantage of the export market because its products meet the international standard. So, there is no dependency on Unilever. On the other hand, companies gain a guaranteed supply of high quality raw materials, production cost savings, and consumer loyalty that is satisfied with quality of products and services. Business continuity is assured.

Partnership

association of Faculty of Dentistry in Indonesia and the Doctor Association. For the innovation, Unilever partnered with BASF, Dow Chemicals, and Lindal. It would be better if the company were also partnering with local educational institutions. By supporting ongoing research done by universities, so that the younger generation in Indonesian will be able to create a variety of innovations. At Massachusetts Institute of Technology (MIT) university in Boston, USA, support research costs from company reached USD 400 million dollars per year to develop a laboratory which produce product innovations. If the product innovation has been created, companies that provide assistance could purchase the copyright of the product. This way, companies can save on the research cost (Research and Development), while universities gain the opportunity to develop knowledge. Michael Porter and Mark Kramer call this kind of activity as strategic philanthropy. In addition, the company should recycle a used product packaging so that it will become a raw material again. This is because if the used product packaging is only transformed into bags, purses, etc., if the product is defective, it will still become a trash. Finally, companies could educate consumers and give them incentives discount to buy refill products. If there are many consumers who want to do this, how much waste could be reduced in this beloved earth.

In doing business and CSR, the company partnered with various parties who are experts in their field. For example, in the health sector, Unilever partnered with the health department and non-governmental organisations (NGO) also with the

www.britcham.or.id

23


BUSINESS & ECONOMICS

HEARTBLEED – THINGS YOU NEED TO KNOW Through heartbleed.com, Codenomicon, a Finnish cybersecurity company, provides an explanation about this security bug:

As reported in early April, the Internet is now facing one of its biggest security issues to date, Heartbleed bug. The Heartbleed bug managed to go undetected and may have been exposing users’ privacy including passwords and credit card information for the past two years. What is Heartbleed? Heartbleed is a security bug in OpenSSL, introduced in a new version of the software at the end of 2011, which leaks information in the computer’s memory. The bug exists in the OpenSSL’s implementation of the TLS/DTLS (Transport Layer Security Protocols) heartbeat extension (RFC6520). The bug caused the leak of memory contents from the server to the client and from the client to the server, when it is exploited. In his blog, Chief technology officer of Co3 Systems Bruce Schneier described the bug as “catastrophic”.

24

issue 2 - 2014

“The Heartbleed bug allows anyone on the Internet to read the memory of the systems protected by the vulnerable versions of the OpenSSL software. This compromises the secret keys used to identify the service providers and to encrypt the traffic, the names and passwords of the users and the actual content. This allows attackers to eavesdrop communications, steal data directly from the services and users and to impersonate services and users.”

What is OpenSSL? OpenSSL is a massively adopted open-source implementation of SSL and TLS protocols. OpenSSL allows websites and Internet applications such as email, instant messaging (IM), and virtual private networks (VPNs) to make secure Internet connections via TLS and SSL protocols. Many networking devices also use OpenSSL for software encryption making them just as vulnerable to Heartbleed as the Internet. Heartbleed bug affects the encryption technology, OpenSSL, creating an opening in SSL’s encryption technology. But, what is SSL? SSL (Secure Sockets Layer) is a standard security technology for establishing an encrypted link between a server and a client— typically a web server (website) and a browser; or a mail server and a mail client (e.g., Outlook).

SSL allows sensitive information such as credit card numbers, social security numbers, and login credentials to be transmitted securely. Normally, data sent between browsers and web servers is sent in plain text—leaving you vulnerable to eavesdropping. If an attacker is able to intercept all data being sent between a browser and a web server they can see and use that information. Here’s how SSL encrypts Internet traffic moving from your browser to a website operated by a company network, financial firm or shopping site: 1. The user’s browser connects to a website (Web server) secured with SSL (https). The browser asks the site to identify itself. 2. The website sends a copy of its SSL certificate, including the site’s public key. 3. The browser checks the SSL certificate against a list of trusted certificates and verifies the website’s identity, allowing the user to confirm the genuine name of the business. 4. If the browser trusts the certificate, it creates, encrypts, and sends back a session key using the server’s public key. 5. The website decrypts the session key using its private key and sends back an acknowledgement encrypted with the session key start the encrypted session. 6. The website and the browser now encrypt all transmitted data with the session key.


“The Heartbleed bug allows anyone on the Internet to read the memory of the systems protected by the vulnerable versions of the OpenSSL software. ... This allows attackers to eavesdrop communications, steal data directly from the services and users and to impersonate services and users.” Risk When it first disclosed to the public, Netcraft, net monitoring company, suggested that around 17 percent (about half a million) of the Internet’s secure web servers were vulnerable to the attack. Sucuri Security of Menifee analysed websites ranked by Internet traffic company Alexa and found that the top 1000 websites were all patched. According to them, of top 1 million websites, 20.320 websites –2 percent – were still vulnerable. The problem with the Heartbleed bug revolved around a privacy concern. Privacy concern deals with individual rights and how to protect it from being exposed. With almost all business activities invovled the used of Internet, Heartbleed could possibly used by hackers to steal users information and data, which will become a serious problem. For example in electronic commerce which involve selling and buying products online, a customer will have to include their credit card number to buy the products and other personal information that should be protected. If by any chance the information is exposed, then it will cause even bigger problems, such as identity theft. According to article written by The American Genius, A Canadian attacker used the Heartbleed “bug” against the Canadian Revenue Agency to capture approximately 900 social insurance numbers (SINs). Even though the attacker was arrested, identity theft becomes the primary concern after the incident.

As quoted in PCQUEST’s article, Dan Dinnar, Vice President for Asia Pacific at CyberArk, says that “By hijacking access credentials of legitimate users or the private keys of assets, Heartbleed enables cybercriminals to gain remote access to servers and assets running vulnerable versions of OpenSSL. Heartbleed is a nuclear reminder of why access credentials to sensitive assets should never be divulged to a user.” He also stated that, “Companies need to isolate, control and monitor privileged access to all enterprise assets. Additionally, limitations on access should be enforced, such as dualcontrol which requires additional approval for remote connection. This makes it even more difficult for an attacker to abuse hijacked user credentials.”

remember all their login details but not all. Besides changing your password, you could also apply a two-step verification to access your account. Many website and social media provide a two-step verification option. According to Wikipedia, two-step verification is a process involving two stages to verify the identity of an entity trying to access services in a computer or in a network. The two-step verification requires users to input another password or code send to them through message or email to login into their account.

What You Can Do to Minimize Your Risk? There are tips for individuals to prevent Heartbleed and other internet vulnerabilities. One thing you could do is to change your password regularly. Many experts urge people to change their passwords across their various accounts. Here’s what you need to bear in mind when changing passwords: ■■ For optimal security, create a long passwords with random numbers and punctuation. ■■ Passwords are more secure if there are no actual words in them. ■■ Vary your passwords for each account. Every single one of them. ■■ Don’t forget to store your login details on password managers. Few could probably

Source: https://www.heartbleed.com/ http://readwrite.com/2014/04/20/how-toguard-yourself-against-heartbleed-step-bystep#awesm=~oCdYuxqhPEAa40 http://www.bbc.com/news/ technology-26969629 http://www.bbc.com/news/ technology-26971363 http://www.bbc.com/news/ technology-26985818 http://www.democratandchronicle.com/story/ money/business/2014/04/21/heartbleed-bugmeans/7971473/ http://www.pcquest.com/pcquest/ news/213754/heartbleed-vulnerability-whatmost-secure-approach-passwords http://agbeat.com/tech-news/heartbleed-bugreally-harmed-anyone/

www.britcham.or.id

25


BUSINESS & ECONOMICS

Eco Cars And Key Developments Within The Global Auto Industry

Overview

Major automotive manufacturers have traditionally focused on developing high quality sophisticated vehicles for developed markets, which are reaching saturation point. More recently, demand has increased in developed markets for so-called “eco cars” such as hi-tech hybrids and electric vehicles (EV). New technologies and demographic issues, such as an increasingly aging society, are inspiring the development of the next generation smart cars which will feature autonomous driving. Perhaps a more significant shift is growing demand from emerging markets, which now account for a higher percentage of vehicle sales than developed markets and have become the growth engine for the global automotive industry. Even though emerging market consumers tend to favour low-price vehicles, in China and some parts of Southeast Asia, governments are introducing incentives for automakers to produce eco cars. This will likely stimulate higher demand for eco cars in those markets. As a result, carmakers are responding to these contrasting needs and implementing new manufacturing processes to address them profitably.

Emerging markets drive global sales growth

Domy Halim, Country Manager, Indonesia Domy leads a strong team of consultants and analysts in our Indonesia office which first opened in Jakarta in the 1990s. Having worked extensively in both Indonesia and Australia, Domy assists clients with all aspects of their sales and marketing strategy for Indonesia, including partner evaluation solutions. Email: domy. halim@ipsos.com | Phone: +62 21 527 7701

World vehicle sales plummeted during 2008 and 2009 as a result of the global financial crisis and only started to recover in 2010. In 2009, however, the number of vehicles sold in emerging markets for the first time exceeded the number of vehicles sold in developed markets. Since then emerging markets have remained the key driver of global auto sales growth. That trend is expected to continue with emerging market sales forecast to reach some two thirds of the total of forecast sales 90 million vehicles expected to be reached within 2015.

Eco cars: Diversification of power sources

Environmental concerns are forcing governments to introduce increasingly stringent emissions regulations. For example, a new fuel economy regulation was introduced in China, the world’s largest auto market, in May 2013. This regulation will see the government subsidise the sales price of electric and plug-in hybrid vehicles, with a target of having 5 million such vehicles on the road by 2020.

Electric vehicles

Electric vehicles were initially expected to be the driving force of next generation vehicles. In December 2010, Nissan launched the “Leaf”, a mass-produced EV. Other automakers followed suit. However, sales are falling well short of forecasts. The combined cumulative sales target for Nissan and Renault EVs by 2015 is 1.5 million vehicles, however only 100,000 units had been sold by September 2013. EV sales were seriously limited by the vehicle's inability to drive long distances due to insufficient battery performance and a lack of recharging stations. Significantly improving battery performance will take considerable time. This technological drawback has seen most manufacturers postpone plans to mass produce EVs. Micro-compact EVs, however, may become popular in some countries within a shorter timeframe.

26

issue 2 - 2014


Micro-compact EVs seat up to two people and are positioned between light motor vehicles and motorbikes. They do not produce emissions, require minimal parking space and are easy to drive. Microcompact EVs are designed for making short trips and are therefore unaffected by existing battery limitations. As such, there is currently a growing movement in Japan and some parts of Europe to promote micro-compact EVs as a practical mode of transport for the elderly and for people wanting a convenient vehicle for making local journeys.

Fuel cell electric vehicles

Fuel cell electric vehicles (FCV) are also attracting more attention as a viable alternative to EVs. Powered by hydrogen fuel cells, FCVs can fill up on hydrogen at hydrogen stations, similar to how gasoline-fuelled vehicles top-up at gas stations. FCVs are seen by many as the ultimate eco car as they only emit water. More importantly, FCVs are able to travel distances of up to 700 kilometres on a single tank of hydrogen. The ability to travel further before refuelling could see FCV sales overtake those of EVs. Toyota has already announced plans to commercially manufacture FCVs in Japan and the US from 2015. The carmaker introduced its FCV at the Tokyo Motor Show in November 2013 and at the Consumer Electronics Show in January 2014. Initial US sales will take place in California where some 50 hydrogen stations will be installed by the end of 2015. Key factors that will affect the popularity of FCVs, especially in the initial launch period, include ensuring a stable supply of hydrogen, setting fuel prices on a par with gasoline and ensuring a network of hydrogen stations. It will take some time to resolve these issues, but the industry believes they will be achieved more quickly than solving the battery capacity problems that continue to restrict the viability of EVs.

Hybrid

Hybrid electric vehicles (HEV) such as the Toyota Prius achieve high fuel economy and reduced emissions by using the electric motor when travelling at slower speeds. Plug-in hybrid vehicles (PHV), which can be recharged using household power outlets, have recently entered the market and increased the distance that can be travelled using an electric motor alone. However, a number of issues still remain with regard to PHVs such as a notable increase in car weight due to the greater number of parts, batteryassociated costs and the low availability of recharging stations.

Eco cars: Improving internal combustion engines

On-going technological developments to improve the fuel efficiency and lower emissions of gasolineand diesel-powered vehicles will play a bridging role until zero-emission eco cars become commercially viable in developed markets. At the same time, these more efficient hydrocarbon-powered vehicles will likely prove more popular in emerging markets where EVs will be notably more expensive in relative terms and face greater limitations due to poorer refuelling infrastructure.

Conventional vehicles

Conventional vehicles are therefor expected to continue to play a major role for the foreseeable future. For example, Mazda, is developing EVs and HEVs while continuing to improve the efficiency of its IC engines for the near and mid-term. One element of this strategy is the commercialization of an engine technology called Homogeneous Charge Compression Ignition (HCCI), which is said to improve thermal efficiency by up to 50 per cent. In Europe, demand for diesel cars is already high and diesel vehicles already have the major market share. As a result, fuel-efficient diesel cars are currently considered mainstream eco cars. HEVs are unpopular due to being relatively expensive and less capable of high-speeds. The popularity of diesel vehicles is also on the rise outside of Europe due to market penetration of premium German brands offering these models, such as BMW and Mercedes Benz.

Flexible fuel vehicles

Flexible fuel vehicles (FFV) which reduce emissions by using alternative fuels to gasoline are also showing increased sales. More than 10 million FFVs have been sold worldwide, with the largest percentage concentrated in Brazil. Bio-ethanol, which uses sugarcane, grain, or fruit as the base ingredient is the primary form of fuel for FFVs. FFVs can also run on 100 per cent ethanol, however, sales are increasing much faster for vehicles that run on an ethanol mix (flexible fuel). Because EVs and FCVs both require time and significant investments in infrastructure, there will be no practical commercial alternative to conventional gasoline-powered vehicles for the near-to-medium term. However, competition is intensifying within the hybrid vehicle market. These cars combine an internal combustion engine with an electric motor to reduce the use of gasoline and lower emissions at the same time.

The diversification of fuel sources has also led corporations from non-auto industries to enter the market. The shift towards electricity as a key power source for vehicles is seeing many engine components change with some parts becoming redundant. The increasing computerisation of cars has dramatically changed the configuration and production of parts which is likely to see the fully-fledged entry of comprehensive electronics manufacturers and other non-auto industry players into the market.

www.britcham.or.id

27


BUSINESS & ECONOMICS

Smart cars: Autonomous driving technology

Automotive safety technology is evolving from “passive safety” such as seatbelts and airbags, which focus on responding when an accident occurs, to “proactive safety” such as anti-sideways skid systems and automatic brakes that help avoid accidents in the first place. Smart cars take things a step further and are equipped with various sensors to detect surrounding conditions and provide auxiliary support by automating the driving response to such conditions. Nissan announced they will commercialise such vehicles by 2020. General Motors is setting its sights of having autonomouslydriven vehicles whose use will be limited to expressways in the market by 2017. Google, an outside player, began public road tests three years ago and has conducted autonomous driving for a total of 480,000km with a target for fully operational autonomous vehicles by 2017.

Standardising parts

Automotive manufacturers need to secure resources including budget and personnel for the research and development of next generation vehicles, as well as to develop and provide low-price models suitable for emerging markets. Carmakers are therefore attempting to make their manufacturing process more efficient and reduce costs by standardising automotive parts. Toyota will start selling new model vehicles that utilise a new production technique called Toyota New Global Architecture (TNGA) from 2015 onwards. This will see the standardisation of parts with the aim of improving development efficiency by 20-30 per cent. It will also introduce three types of chassis to further improve the standardisation approach. Toyota's strategy is to use these three chassis to develop multiple vehicle models and ultimately standardise around 80 per cent of the several thousands of parts they use. The company will also change their parts procurement process to bulk purchase minimum amounts that can be used across all vehicle models and regions. However, the financial and operational risk from a product recall increases with the use of such a bulk procurement of parts. Therefore quality assurance will need to be improved to avoid recalls in the first place as well as enhancing financial and operational response capabilities in case a recall does occur. The substantial nature of such a risk may see procurement and standardisation only taking place with major automotive parts manufacturers.

Partnerships and alliances

The investments in new technology, infrastructure, information technology and other related areas that will be required to meet the various challenges outlined above are beyond the capability of any single automotive manufacturer. As a result, there will likely be an increase in partnerships and alliances, both among carmakers and across industries. A number of such alliances have already been announced, including in the following areas:

28

issue 2 - 2014

Designing new vehicle types (EV, FCV, fuelefficient cars, low-price vehicles, etc) • •

Toyota and BMW are jointly developing FCVs and reduced-weight vehicles. Daimler AG and Renault/Nissan are strengthening their co-operation on technical developments to commercialise FCVs.

Developing auto parts for new vehicle types (parts standardisation, lightweight parts, environmentally friendly parts, etc) In April 2013, a Memorandum of Understanding formalising co-operation between the Automotive Industry Action Group of USA, European Association of Automotive Suppliers and Japan Auto Parts Industries Association came into force. The alliance will focus on the creation, technical development and review of environmental reporting requirements as defined by technical standards organisations on a national and regional basis.

Designing new vehicle types (EV, FCV, fuelefficient cars, low-price vehicles, etc) • •

Toyota and BMW are jointly developing FCVs and reduced-weight vehicles. Daimler AG and Renault/Nissan are strengthening their co-operation on technical developments to commercialise FCVs.

Developing new technologies (autonomous driving technology, car electronics, telematics, etc) •

Google has entered partnerships with automakers GM, Audi, Honda and Hyundai, as well as NVIDIA, a microchip manufacturer, to install Android OS in their vehicles. Panasonic is in discussions with several autoparts suppliers to utilise its consumer electronics technologies, such as cameras and sensors which can be added to front and rear bumpers for use in automated parking systems.

Infrastructure investment (electricity charge stations, hydrogen stations, etc) •

BMW is planning to launch an EV in the USA in 2014. The firm will co-operate with companies in the electricity supply, real estate and parking management industries to set up rapid charger stations in several major cities. Toyota Group's trading company, Toyota Tsusho, will co-operate with leading French industrial gas company Air Liquide to enter the hydrogen filling station business in Japan in 2014.

While automotive industry has been characterised by rapid technological developments and the forging of new strategic alliances, the policy and regulatory environment in regard to issues such as autonomous driving and infrastructure development has not always kept pace. This reality requires the industry to work closely with governments to create a regulatory framework that will facilitate the development of the cars of tomorrow.


BUSINESS & ECONOMICS

PROVIDING A BETTER EDUCATION WITH DIGITAL TECHNOLOGY SUPPORT Indonesia celebrated its National Education Day on May 2nd. But, looking at the condition of education in Indonesia, there are many issues faced in providing a better education especially using digital technology support. IT has took the role to support people and aspects of life such as business and education. In education sector, many school and university are implementing digital technology to support teaching and learning systems. Hoping that it will lend its power to improve their teaching standard and to provide a better education for their students. An article about the value of education stated that 65 percent of all United State schools are connected to the internet (Q.E.D, 1997). On the average in 1996, there is one in school computer for every 10 students in the country (Q.E.D, 1997) , and at least one computer is provided at every schools. Technology in fact has support education for years. Then how about now? There are a lot of IT’s companies launch products to help education such as microsoft dreamspark from microsoft and few campus virtualization software. Furthermore, there is the richest technology university in the Middle East, King Abdullah University of Science and Technology (KAUST) in Saudi Arabia, which is implementing digital technology. However, implementing digital techology for education is rather difficult especially in the developing countries such as Indonesia. The main issue is nothing but high cost of implementation. Based on the article, “A High-Tech Oasis in Saudi Arabia”, the cost to build a hightech university such as KAUST is multibillion-dollar. The article was published back in 2009, which means the cost in 2014 would be higher than that. It is really expensive compare to education budget in

developing countries. The digital technology implementation cost is actually quite high since the equipment itself is considered expensive. In addition, the system maintainance cost is also rather expensive. In Indonesia, to implement a digital technology for education is relatively hard because education in Indonesia itself has not aim for information technology. Even more, there is no specific budget from APBN for education based on IT. Most of education budget in Indonesia use to finance children schooling whose cannot attend school because of financial problem. In the other hand, the government priority in education has not reach the IT-based education point because in reality many of Indonesian people does not understand IT quite well especially those who lives outside the big city. The government in fact is concentrating on trying to introduce technology such as internet to the people lived outside the big city by creating a program called “Internet goes to village”. The program purpose is to help people in the village to get more knowledge through internet. However, the program itself does not show much influence to the improvement of education in the village. For example, it is said that the program “internet goes to village” in Madiun, East Java cannot maximalize its implementation due to financial problem to buy both hardware and software. Beside that, the human resources for the program also need more training in IT. Facing with financial and human resources problems, making it hards to maximilize the implementation of the project. However at least, the project shows that the government has at least put IT based education in consideration by introducing technology to village people.

the internet if the connection itself is relatively poor, although it seems to improve a little in the past year. The other networking problem is there is only a few of networking which based on fiber optic. Even though DEPKOMINFO already has plan to build a networking system which cover all part in Indonesia, the project itself will take years to finish. At least, there is network system called inherent build by Direktorat Jenderal Pendidikan Tinggi (DIKTI) in 2006 to connect all university in Indonesia in the near future. The other problem on implementing digital technology is culture. There are lots of people who think that proper education is a face-toface process; going to school and attending class. Some people think learning using computer is not consider as an education. However in reality learning through internet or computer is a common thing use in most of university such as University of Indonesia, Bina Nusantara University and Brown University. For example, student in Faculty of Computer Science in University of Indonesia is using Student Centered e-Learning Environment (SceLe) as a place for lecturers to post lecture, academic news, and lecture discussion. It is also a place to submit assignment. In Bina Nusantara University, there is also an online learning program called “Binusmaya” which is similar to SceLe. To conlude, providing a better education with digital technology support is not an easy task because there are many problems faced especially financial problem and culture. In Indonesia itself, education based on IT is still out of reach for the time being because the concern of education in Indonesia is to provide a proper education for everyone not providing a better education with digital technology support.

From networking side, the internet connection is also a problem faced by many cities and village in Indonesia. It is hard to connect to

www.britcham.or.id

29


THIS MONTH’S FEATURE

Indonesia General Election 2014

Andrew Sutedja Partner at Sutedja & Associates, Chairman of Young Professionals Group at British Chamber of Commerce in Indonesia, LL.M in Commercial Law, School of Law, the University of Sheffield, UK, Associate at the Chartered Institute of Arbitrators, London. Email: andrew@sutedjaassociates.com

Only few minutes before the deadline on Friday, 9th of May 2014, the General Election Commission (KPU) published the official results of the country’s 2014 legislative election (“2014 Legislative Election”). As predicted, the official result is similar to the quick count results which had been published on and after the election. Following table shows the comparison results of 2014 and 2009 Indonesian General Elections (Real Count Version) Ballot Number

Name of Parties

2014 Quick Count 2009 General Results (Cyrus – Election Result CSIS) (Real Count) 1 Nasdem Party (Partai Nasdem) 6.72% 2 National Awakening Party 9.04% 4.94% (Partai Kebangkitan Bangsa, PKB) 3 Prosperous Justice Party 6.79% 7.88% (Partai Keadilan Sejahtera, PKS) 4 Indonesian Democratic Party 18.95% 14.30% (Partai Demokrasi Perjuangan, PDI-P) 5 Golkar Party (Partai Golongan 14.75% 14.45% Karya, Golkar) 6 Great Indonesia Movement 11.81% 4.46% Party (Partai Gerakan Indonesia Raya, Gerindra) 7 Democratic Party (Partai 10.19% 20.85% Demokrat, PD) 8 National Mandate Party (Partai 7.59% 6.01% Amanat Nasional, PAN) 9 United Development 6.53% 5.32% Party (Partai Persatuan Pembangunan, PPP) 10 People’s Conscience Party 5.26% 3.77% (Partai Hati Nurani, Hanura 14 Crescent Star Party (Partai 1.46% 1.79% Bulan Bingtang, PBB) 15 Indonesian Justice and Unity 0.91% Party (Partai Keadilan dan Persatuan Indonesia, PKPI) Table 1: 2014 Quick Count and 2009 General Elections Result*

It is clear from the table that the Indonesian Democratic Party of Struggle (PDI-P) obtains the highest exit poll with 18.95%. Under Indonesia’s complex electoral rules, a party needs at least 25% of the popular vote in these parliamentary elections—or 20% of the seats—to be able to nominate its own candidate for the presidential election. Thus the PDI-P appears already to have fallen well short of the popular threshold, and may also fall short in parliamentary seats. If so, it will have to enter into a coalition with one or

more parties. As a consequence, Parliament at this stage is believed to be very fragmented because many parties have gained a relatively big votes and of course the bargaining power will be treated equally. In addition to that, the Indonesia’s likely next president may face a bumpier than-expected route to the presidential palace following the quick count results in parliamentary vote on 9th of April 2014. It will be so much deals conducted among politicians to be nominated as a presidential candidate and fight for the next presidential election in July 2014. The nomination of Joko Widodo from PDI-P as a presidential candidate is impossible without support from other parties. PDI-P realises that its achievement in the legislative election is disappointing. The party move very fast to approach several parties including: Nasdem, Golkar and PKB for immediate discussion about coalition. Recently, the Nasdem and PKB agree to give full support to Joko Widodo to run for the presidential election this July. As a result, it makes the party surpasses the presidential threshold of 25% to nominate Jokowi as one of the presidential candidates. The real count results show that PDIP is in the first place but its performance was not great. What are the causes? Party supporters show their grievances towards the result

* The table excludes the 3 local Aceh Parties and last updated on Monday, 14th of April 2014.

30

issue 2 - 2014


of this parliamentary vote. Indeed, the nomination of Joko Widodo as a candidate of president was expected to lead the polls for at least 30%. International and domestic investors have been betting that government led by Jokowi can restart stalled bureaucratic reforms and infrastructure projects. After a heavy sell-off last year, they have been piling back into Indonesia’s currency, stock and debts markets, helping to make it of the The prospect of a

always accurate. The party seems to be over-confidence that Jokowi’s popularity would have naturally boosted the voting results. Many people would argue that the socalled “Jokowi effect” contribute much in supporting PDI-P to gain majority votes. It is very clear for the PDI-P to rework in its strategy to win the July presidential election. The party should let Jokowi to maximise his

whether the party is an ideal party, but whether he is the best choice in a system dominated by a tightknit political and business elite and riddled with corruption. The position of PDI-P which ruled the country when Megawati Soekarnoputri was in the office from 2001-2004 was not an ostensibly investor-friendly party. It has clear policies or ideology but promotes a broadly protectionist economic stance and secure the country to be self-sufficient in food.

The real count results show that PDIP is in the first place but its performance was not great. What are the causes? Party supporters show their grievances towards the result of this parliamentary vote. Indeed, the nomination of Joko Widodo as a candidate of president was expected to lead the polls for at least 30%. Jokowi presidency has put lift both the currency and Indonesia Stock Exchange as Asia’s best-performing emerging markets this year (Financial Times, 2014). Jokowi might face huge challenge from his rivals, including the controversial ex-general Prabowo Subianto (whose parliamentary campaign was discipline, focus and impressive) and also from the businessman-turned-politico Aburizal Bakrie from the Golkar Party. There are at least two factors why PDIP did not win majority in the 2014 general election. Firstly, the party does not utilise the momentum when Jokowi was declared as a candidate of president; for instance, the party tends to show figures of Megawati or Puan Maharani more than Jokowi in the most of campaigns and social media. Secondly, the party does not have much ardent supporters at the grass-roots level. The approach and communication at this level are very lame. Thirdly, Megawati shows balky attitude by closing communication with other big parties may jeopardise its electability. Lastly, the party is complacent with the survey which always puts PDIP would win popular vote. In reality, the prediction is not

appeal, bring out his qualities and make him look and sound like a leader that his could be. Despite his strong personal track record, Jokowi remains untested at the national level. It is very important for PDI-P and Jokowi to choose the right person to be his vice president. The parties which obtained at least 3% of the votes obviously have their own agenda and it should be treat carefully. The new government should avoid what the President Yudhoyono through his Coalition Joint Secretariat (“Setgab”) did before when involved in bitter-in fighting and perpetual horsetrading and eventually lead to policy paralysis. Now even more parties will sit in parliament than before, making it still more fractious. Some parties will look to flex their new muscle, compounding the challenges facing any government trying to force modernising measures through the legislature.

There is only limited time available for PDI-P to win the next presidential election and it should work harder to persuade the Indonesians who did not elect it in the legislative election and by the persona of Jokowi he should be trusted to lead this country. Perhaps the only possible way to do this, by let him stands alone as “Jokowi” without any interference from others. On top of that, we really hope the next Indonesian President brings harmony, truth, faith and welfare for the country.

Many believes even though Jokowi is not the perfect candidate but he is willing to work hard and honest. Yet, for many voters, the question is not whether Jokowi-as he is widely known-is a flawless candidate or

www.britcham.or.id

31


THIS MONTH’S FEATURE

Elections in Indonesia From Time to Time From 1955 to 2009, Indonesia held ten elections to elect those that would hold the responsibility to represent Indonesian people as government officials. Although Indonesian people have voted in the elections since 1955, Indonesian people did not elect the head of state - the President for 33 years from 1971 until 2004. From the collapse of New Order, the presidential seat is elected for a five-year term, as well as the other government officials. Early Election (1955) Election in 1955 marked the very first election in Indonesia after its independence in 1945. Through the election, Indonesian people took their first step in learning about democracy after being under the colonist for centuries. Even though there are worries over the national security that has not been conducive, dissension in the cabinet, and failure of the new government to prepare the constitution for the election resulting in 10 years delay for the first election. The first election was held to elect the representative for the legislative and Constitutional Assembly of Indonesia. The Constitutional Assembly is an assembly responsible to create a definitive constitution to replace the constitution of 1950. The election occurred in two periods. The first one took place on 29 September 1955 to elect the members of the People’s Representative Council. The second period took place on 15 December 1955 to elect the members of the Constitutional Assembly. About 80 political party, organisation, and individuals stand for the election. With 272 members, Indonesia formed its first elected People’s Representative Council on March 1956. On the other hand, 542 members of the Constitutional Assembly was inaugurated on November 10, 1956.

32

issue 2 - 2014

Following the election in 1955, political condition in Indonesia faced lots of conflicts resulting the cancellation of the election scheduled in 1960. On July 5, 1959, the first President of Indonesia, President Soekarno, issued a decree dissolving the People’s Representative Council and the Constitutional Assembly elected in 1955 and returning to the 1945 Constitution. Beginning of the New Order (1971) Political conflicts after 1955 election ended with the embroilment by Communist Party of Indonesia on September 30, 1966. After the tragedy, General Suharto outmanoeuvred President Sukarno politically and was appointed president in 1968 marking the beginning of the New Order, consolidating his influence over the military and government. Three years after ruling Indonesia, President Soeharto finally held the second election on July 5, 1971. Ten political parties participated in the election. There is new regulation made that obligate the officials to stay “neutral”. However, practically, the officials supported the Functional Groups (Golkar). New Order Era (1977-1997) After the election in 1971, there are five election that was held in Indonesia during the new order era, which is held in 1977, 1982, 1987, 1992, and 1997. Those elections

were participated by three party, United Development Party (PPP), Indonesian Democratic Party (PDI), and the Functional Groups (Golkar). During this period, the election was always won by the Functional Groups (Golkar) and Soeharto was always assigned as the President by the People’s Consultative Assembly (MPR). After the 1971 election which is participated by ten parties, a constitution about political party and Golkar was made in 1975. This policy was made to arrange a merge between political parties. Nine political parties were merge into two parties, United Development Party (PPP) and Indonesian Democracy Party (PDI). Those parties faced the Functional Groups (Golkar) in elections during the new order era. During new order era, Indonesian people elect a party in the election. The party will then choose their representative to sit in the House of People’s Representative (DPR). Members of DPR were also members for the People’s Consultative Assembly (MPR). Summary of 1977–1997 election Election in 1977: 2 May Election in 1982: 4 May Election in 1987: 23 April Election in 1992: 9 June Election in 1997: 29 May


Results Election in 2004 The 2004 legislative United Development The Functional Indonesian DemoParty (PPP) Groups cratic Party (PDI) Year election was held on Votes Seats Votes Seats Votes Seats April 5, 2004. For the 1977 18,743,491 99 39,750,096 232 5,504,757 29 first time, Indonesian (29.29%) (27.50%) (62.11%) (64.44%) (8.60%) (8.06%) people voted directly 1982 20,871,880 94 48,334,724 242 5,919,702 24 (27.78%) (26.11%) (64.34%) (67.22%) (7.88%) (6.67%) for the representatives 1987 13,701,428 61 62,783,680 299 9,324,708 40 in parliament and the (15.97%) (15.25%) (73.17%) (74.75%) (10.87%) (10.00%) president and vice 1992 16,624,647 62 66,599,331 282 14,565,556 56 (17.00%) (15.50%) (68.10%) (70.50%) (14.89%) (14.00%) president. In the earlier 1997 25,341,028 89 84,187,907 325 3,463,226 11 period, the president and (22.43%) (20.94%) (74.51%) (76.47%) (3.07%) (2.59%) vice president elected by the People’s Consultative Election 1999 Assembly. During the election On May 20, 1998, Soeharto resigned in 2014, the election was held from the presidential seat due to twice, namely the legislative and public pressure, those ended the presidential elections. New Order regime. BJ Habibie, who was previously the vice president A total of 24 parties contested the was assigned to replace President election. The Golkar Party won Suharto as the new President of the largest share of the vote, at Indonesia. Election 1999 was marked 21.6%, followed by the Indonesian the first election after the collapse Democratic Party-Struggle, the of the New Order regime. It was National Awakening Party, the held on June 7, 1999 under the United Development Party and government of BJ Habibie. Spirit of newly formed Democratic Party. 17 democracy, which was suppressed parties won legislative seats. during the New Order regime, came to life. Hundreds of political parties The first election, legislative formed and registered themselves as elections, was held on April 5, 2004 participants in the election. National and attended by 24 political parties. Election Commission reviewed all Political parties, which gained more parties and allowed 48 political than or exactly three percent of parties to participate in the election. the votes, allegeable to nominate The Functional Groups (Golkar) that candidates for the Presidential was not originally a party turned into election. Five major parties winning a political party. Five major parties the legislative election are: winning the election are: No 1 2 3 4 5

Party Indonesian Democratic PartyStruggle The reformed Golkar Party United Development Party National Awakening Party National Mandate Party

Vote

Percent

35.689.073

33,74

DPR Seat 153

23.741.749

22,44

120

11.329.905

10,71

58

13.336.982

12,61

51

7.528.956

7,12

34

No 1 2 3 4

Although the Indonesian Democratic Party of Struggle become the winning party, but the chairman of the party, Megawati Sukarnoputri, failed to become the president. During this period, the president was elected by the People’s Consultative Assembly. Deliberation held by the People’s Consultative Assembly appointed Abdurrahman Wahid of the National Awakening Party as president with Megawati as vice president.

5

Party

Vote

The reformed 24.480.757 Golkar Party Indonesian 21.026.629 Democratic PartyStruggle National 11.989.564 Awakening Party United 9.248.764 Development Party Democratic Party 8.455.225

Percent 21,58

DPR Seat 128

18,53

109

10,57

52

8,15

58

7,45

57

The second election was the presidential election participated by five pairs of candidates: ■■ Susilo Bambang Yudhoyono Jusuf Kalla ■■ Megawati Sukarnoputri - Hasyim ■■ Wiranto - Solahuddin Wahid ■■ Amien Rais - Siswono Yudohusodo ■■ Hamzah Haz - Agum Gumelar The results of the first round of the presidential election on April 5, 2004.

Rank Candidates Polling 1 Susilo B.Y. - J. Kalla 36.070.622 2 Megawati - Hasyim 28.186.780 M. 3 Wiranto-Sallahudin 23.827.512 W. 4 AmienRais - Siswono 16.042.105 Y.H. 5 Hamzah H. - Agum 3.276.001 G. Total Vote 107.403.020

Percent 33.58% 26.24% 22.19% 14.94% 3.05% 100%

Because there is no candidate that gained 50 percent of the vote, then a second round was held participated by two major candidate’s pairs Susilo Bambang Yudhoyono - Jusuf Kalla and Megawati Soekarno Putri – Hasyim Muzadi. The winner of the second round of the presidential election was Susilo Bambang Yodhoyono – Jusuf Kalla. Election in 2009 Legislative elections in 2009 was held on April 9, 2009 and participated by 38 political parties. Thousands of legislative candidates competed to fill the 560- seats on the People’s Representative Council (DPR), 132 seats on Regional Representative Council (DPD), and seats in provincial and district/city Representative Council (DPRD). For the first time, voters no longer voted a political party, but candidates. A total of 121. 588. 366 voters in 33 provinces in Indonesia took part in the legislative election in 2009. Democratic Party, led by Susilo Bambang Yudhoyono won the election with a total of 21,703,137 votes or as much as 20.85 percent of the votes. In addition, there are 8 other parties that passed the parliamentary threshold, the reformed Golkar Party, Indonesian Democratic Party-Struggle (PDI-P), the Prosperous Justice Party (PKS), the National Mandate Party (PAN), the National Awakening Party (PKB), the United Development Party (PPP), People’s Conscience Party (Hanura), and Great Indonesia Movement Party (Gerindra). Election in 2014 Election in 2014 will be held twice, legislative election and presidential election. The legislative election held on April 9, 2014 and the first round of the presidential election will be held on July 9, 2014. Source: www.indonesiasatu.kompas.com/

www.britcham.or.id

33


THIS MONTH’S FEATURE

Briefing for Business: Indonesian Presidential Elections Elections Basics:

Elections are due once every five years in Indonesia. Legislative elections were held in April 2014 and Presidential elections will be held in July 2014. Legislative Elections - At the national level, elections were held for the People’s Representative Council (DPR) and the Regional Representative Council (DPD). These are the lower house and the upper house of the People’s Consultative Assembly (MPR), Indonesia’s Parliament. Presidential Elections - After the legislative elections, a party or a coalition of parties that won at least 25% of the vote or 20% of seats in the lower house (DPR) could nominate candidates for President and Vice President. The elected President has a limit of two fiveJANMARCH

Party Campaigning

9 APRIL

Parliamentary (Legislative) Elections

7-9 MAY

National Results Announced

MAY

JUNE

9 JULY

Coalition Building, Presidential Candidates Announced

Presidential Campaigning

year terms so the current President, Susilo Bambang Yuhoyono, is standing down having completed his two terms.

Latest Developments:

The 10 political parties that successfully gained seats in April’s legislative elections have formed two coalitions which on Tuesday 20 May submitted their Presidential and Vice Presidential candidates to the Election Commission. Campaigning will officially begin on 1 June. Jakarta Governor, Joko Widodo, leads the first pairing with the 20042009 Vice President Jusuf Kalla his running mate. They are supported by a coalition of four parties which combined has 37% of the next national legislature, some 207 seats. The opposing team is fronted by former Special Forces commander Prabowo Subianto from the Great Indonesia Movement Party (Gerindra) and his running mate ex-Coordinating Minister for Economic Affairs Hatta Rajasa from the National Mandate Party (PAN). They are joined four parties which together have 292 seats controlling over half of parliament. Both candidates have been required to submit full programs to the Election Commission, excerpts of which have been reported in English Language newspapers – •

Presidential Elections 1st Round

• MID JULY

SEPTEMBER

20 OCTOBER

34

Presidential Results Expected

2nd Round if Required

Inauguration

issue 2 - 2014

http://www.thejakartapost. com/news/2014/05/21/ jokowi-kalla-hawkish-economicpolicies.html http://www.thejakartapost. com/news/2014/05/22/jobcreation-core-prabowo-hattaprograms.html

It is too early to judge the likely winner but the first polls following the announcements put JokowiJusuf Kalla in the lead with 46.1%, with 28.5% going to Prabowo-Hatta and 25.4% remaining undecided.

UK-Indonesia Business as Usual:

The new President will be inaugurated on the 20 October 2014 and until that date current President Susilo Bambang Yudhoyono and his existing Cabinet will continue to hold power. It is likely there will be significant change in Ministerial positions in October and, as would be expected, some Ministries are now slowing down their activity. The prospect of elections has slightly weakened the investment climate in the short term but this is not indicative of a longer term trend. The policies of both candidates towards foreign investment and trade are not yet fully known, however any new government will have to deal with fuel subsidies, infrastructure and education as priorities in their 5 year term. Security during Elections: In Jakarta demonstrations are common but rarely violent. The period after the presidential result is announced and whilst the Constitutional Court is dealing with any complaints/appeals is the main window for potential disruption. The successful handling of the April elections has reassured domestic and international observers that the authorities are well prepared for the July elections. There is likely to be an impact on the ease of movements within Jakarta with increased traffic congestion and closed routes due to campaign rallies. In the wider region there are regional hotspots where elections have a history of violence. These include the provinces of Papua, West Papua and Aceh where localised violence in the past has erupted during campaigning, on elections day and after results.


ENGLISH IS

English is the first language of international business 30 St Mary Axe, Swiss Re HQ Nigel Young, Foster + Partners

www.britishcouncil.org


THIS MONTH’S FEATURE

AN UP.DATE STRAW POLL FOR THE PRESIDENTIAL BATTLE (…from the mouths of babes…)

M

any observers are saying that this election will be largely influenced by the votes of the younger generations that are participating in a Presidential election for the first time. We visited one office in CBD Jakarta and asked a group of younger, educated and working Indonesians two simple questions:

Q1: Which candidate do you currently plan to vote for? And why? Q2: What would be your expectations of your chosen candidate in the first 100 days in office? Other than for English language purposes, the responses below are unedited and published in the order we received the responses. Respondent A A1: I am going to choose Prabowo Subianto as the next President of Indonesia because of his vision and mission. He wants to build Indonesia as a great country; one of the greatest countries in Asia, by developing some internal issues e.g. education and culture. As someone who has a huge passion in education, I believe that Prabowo's goals of those two

36

issue 2 - 2014

issues are very desirable and I like the way he tells everyone that a good education is the key to solve all our country’s problems - for the example, corruption. When I first read Joko Widodo's vision and mission, I was quite surprised that he didn’t put educational issues among his priorities.

expand his role more than just a governor of Jakarta and somehow believe that having him as our new President would bring the citizens with him in fresh ways.

A2: My expectations for his

Respondent B

first 100 days would be to see him establish a well organised and well balanced government cabinet. I want to see him give full support to the KPK to knock down corruption and, together with a strong new Minister of Education, to re-build the education curriculum with more development of education in remote areas in Indonesia.

A1: At the presidential election

Respondent C

A2: What I would like to see during his first 100 days is how he manages the educational problems e.g. online-based learning and how he renews some educational policies.”

I would vote for Jokowi as he has proven his great leadership to build a better Jakarta in his current role as the governor of Jakarta. What I have seen is that his core strength is to listen more to the needs of the citizens and he would bring a new hope if he were to be elected as our new President. I would like him to

A1: I go for Jokowi because he has a clean track record and has shown his leadership in Solo and Jakarta as well in ways such as better operation of Trans Jakarta and faster handling during the flooding last year. He seems to have a more logical vision/ mission, particularly relating to


fully cutting the fuel subsidy to reduce the government’s budget deficit

A2: For the first 100 days, I would like to see a decrease in inflation and lower prices for necessities, more support for the KPK and more transport projects to make business run easier in the capital.

Respondent D A1: I plan to vote for Jokowi! I think he has local achievements and is recognized internationally. He has a strong commitment. Jokowi is certainly going to be like fresh air and new hope for the country.

A2: I would like to see restructuring of government bodies and give key positions to people not just because of politics, but because they have achieved things and want to work towards the common interest.

Respondent E A1: Definitely Jokowi. Because I think he would be a better president for Indonesia, considering what he has achieved for Solo and Jakarta so far. It is not appropriate for Prabowo to become a president in this democratic era.

A2: Within the first 100 days after election day, I expect to see Indonesia stronger and more stable with a USD rate below 10,000 (too much expectation??) Most, I would like to see Indonesia heading toward the top 10 of Asia nations.

Respondent F A1: I would vote for Jokowi as the next President of Republic of Indonesia because I think Jokowi is a leader who is committed

to lead this nation in a fair way. This country requires an honest figure to stop all the corruption that leads to poverty for so many. A president must have a commitment and concern for the welfare of the people, and those characteristics I find in Jokowi. Even though people talk about his weaknesses, I think Jusuf Kala will help him. We need to see change. We need to see the welfare of the people on the top as the priority of the leader. We need someone who is able to transform all promises into reality.

A2: And what I really want to see first if Jokowi becomes a president is that he could change the system of the parliament first by choosing people who are committed to the country and the people and not just seeking title and money and their own interest.

Respondent G A1: Jokowi! JK is an honest figure, has a clean track record, proven group work and can build Indonesia

A2: Within 100 days, I would

the fuel subsidy. I feel that Jokowi and Jusuf Kalla would be able to face the challenges.

A2: For the next 100 days after the new president’s term starts, I think it would be great to see some improvement in Jakarta’s traffic problem and to see many responsible people chosen as ministers.

Respondent I A1: My sense is that Jokowi has not yet proven himself enough at the moment. So at this time, I will go for Prabowo. He has had experience with PDI-P previously, of the military and I trust him more with negotiating the difficulties of politics. People say that Jokowi is fresh, but I wonder if he really is his own man, or a puppet of others from the older regimes or failed politicians.

A2: In the first 100 days, I hope we can trust Prabowo to take the first steps to honour his mission and vision by carefully selecting the right ministers for the right reasons. It is them that will have to deliver on the ground.

expect him to cancel all fuel subsidies scheme because the money from this can be redirected to education and healthcare in particular.

Respondent H A1: I remain unsure about who I am going to choose at the upcoming election, but as of now I am going to say Jokowi. Jokowi has a rather positive vibe around him. During his term as the Governor of Solo and Governor of Jakarta, he showed some results to prove his capability as a leader. In my opinion, the country needs a leader that is capable of solving the problems faced by Indonesia for years caused for example by

www.britcham.or.id

37


THIS MONTH’S FEATURE

Scotland’s Independence.. Have your say

307 years ago, Scotland joined with England under the Treaty of Union and these two countries, with the Principality called Wales, are now referred to as the United Kingdom. England and Scotland had shared the same monarch for 100 years before this but England was concerned that future Scottish monarchs may seek associations with countries hostile to England. Not a small amount of money was paid by England to Scottish commissioners to influence the vote in 1706/1707 (why does that sound familiar?) and the marriage of these countries has lasted until now. Scottish Poet Robert Burns wrote at that time; “We’re bought and sold for English Gold Such a Parcel of Rogues in a Nation” However, on 18 September 2014 the resident voters of Scotland will take part in a Referendum. A YES vote will see the creation of a new Independent country (Scotland or Salmonland, name to be announced later!). A NO vote by those thinking that the UK is “Better Together” will retain the UK as it is but the debates and maneuvering will probably see greater recognition of Scotland’s

38

issue 2 - 2014

rights. A kind of “Otonomi Daerah” in the UKif you like. The noted, even legendary, persuasive Scot in Indonesia, Mr Gordon Benton O.B.E. is a staunch proponent of YES and has this to say; “The scaremongering that is coming out of the Unionists (i.e. the ‘NO’ campaign), that Scotland is “too poor, too wee, too stupid” to govern itself, is being seen as a bit of baseless inanity when you consider that about half the countries in the World are around 5 million in size, and most do not have the natural, intellectual, diplomatic, cultural and human resources that Scotland has. Singapore has no natural resources; New Zealand has seas, geothermal energy, sheep (gas!) and delicious wine – and not much else; Denmark has Lego; Sweden has IKEA and lots of lakes and timber ; Norway has oil and one of the best infrastructures in the world (from its oil money savings), Finland has - well, lots of lakes and timber, but has the best educated kids in the World. Switzerland, Holland, so many, all of these having brilliant social support for their inhabitants – and all are prosperous, and high up on

the ‘Planet Health and Happiness’ index. There are many countries in such as Africa that cannot be said to be either healthy or happy, but I am not sure if the Westminster/ Whitehall administration is equating Scotland to the Central African Republic or Brazzaville Congo. Perhaps, in desperation, they are. The referendum is not about Alex Salmond, or the SNP; it is about whether those today registered to vote in Scotland want to see a new Scotland, one that will provide a government which will be fair to all its citizens, provide jobs and thus insure that there will be taxation enough to provide education for all through to tertiary stage, ensure that its citizens would not be deprived of medical attention from lack of personal funds, be able to decide whether it wants to go to wars, to keep nuclear submarines next door to its largest City, to save its fortuitous oil money which would then be solely to be used for much neglected infrastructure, reverse the centuries old mass emigration with selected immigration and have environmentally-sensitive policies to care for its fertile land, its magnificent mountains and its bounteous seas. Scotland is not


short of ££ - income from oil £8 Bn (90% of UK income in last 10 years), Finance £8.8 Bn, Food and drink £13 Bn and Farming £220 Bn (BBC last week). There is oil for 50 years or more, coal for 400 years, and endless energy from the undersea tidal turbine technology, of which Scotland leads the world. It is really not about money, how much better off we will be under independence, (no one can guess the future): it is about the emotion, about the real belief that Scotland can look after its poor, and give everyone a fair start in life. The tens of thousands now needing food banks, the average age of 54 for males in parts of West Scotland, the humility and clinical depression of those who cannot bring home a wage, which results in drink, drug and tobacco addiction, is clearly something we can do something about – but, it seems, only through an ability to set its own priorities, and to do that, Independence is the only answer. And we only have this opportunity – huge forces will ensure that in the event of a ‘NO’ , the chance will not return for a generation. But having said that, it will be impossible in my view, to put the cat back into the bag. Scotland is now, at long last, thinking for itself. Supporting Mr Benton’s views is a Blogger called the Wee Ginger Dug (translation..small light orangy- brown dog) who recently “blogged” in response to a Guardian newspaper’s comment that Scotland was “sleepwalking towards Independence” “The UK media is for the most part missing out on the real debate, so it's effectively not happening as far as they are concerned. This revolution is not being televised. The real Scottish revolution is happening in countless conversations in the pub, in jokes between friends, in families sitting around the telly, in laughs and shouts and smiling faces, in walks in the park in the rain, in the privacy of our own thoughts

and hopes. It's a very Scottish revolution, and it's unlike anything that's ever gone before. This is the revolution of the pie and pint, the revolution of tea and scones. And we've got our eye on the jam too. Sleepwalking? This country has never been more alive. The crusty crud of Westminster has fallen from our eyes and Scotland is awake to potentials that had previously been closed, shut away in the dark closet of the cringe. Now our eyes gaze upon vistas undreamt, our voices have a range we never knew, and for the first time in our lives we've learned how to hope. There's a pathway through the mountains, and we know how to climb. And it feels so good. We're excited at the countless possibilities that are springing up like Scottish bluebells after a long cold winter of the soul. We're not sleeping walking to independence, we're casting off our crutches and getting up on our own two feet, we're running towards the future with hope in our hearts, we're dancing towards it with our own rhythm, we're singing dreams into being with our own tunes. We're following the song-lines to a future we seize in our own hands. It's good to be alive in the Scottish summer, and it's even better being awake.” So what are the NO voters saying or thinking? Unfortunately Westminister’s Conservative led coalition is not well received across the Scottish Border. There is only one Conservative MP in the whole of Scotland and even PM Cameron who has Scottish blood comes across as a reactionary upper-class Englishman. So let me lead the debate for the NO side: I am half Shetland, half England. My mother first travelled (South) to Edinburgh at the age of 18 in 1934 to go to University. The Shetlanders have their own identity

and culture (and language) and lean more towards Norway and Denmark historically. They do not want to be forced into separation from UK if it means being led and controlled by Edinburgh! To them Edinburgh and Westminster are the same. So why should they be forced into this vote? Why should only resident voters be given the opportunity to state their opinions in such a dramatic event? Why has Scotland co-opted 16 year olds as voters for the first time (if not to appeal to the emotional undereducated voter)? Why cannot I and every other person in the World, who can claim a parent or grand-parent born in Scotland, be allowed to vote at this dramatic time? Scotland is like Texas, Catalonia, Yorkshire and Sumatera. Many differences from the other states and provinces and reasons to be Independent but why be so? Europe is aghast at the idea of a break-up of the UK and the precedent this could set in their back yards. External observers with objectivity feel there is no need to separate these countries but maybe a 16 year-old schoolboy in Glasgow will think otherwise. I hope that good sense will prevail and the NO vote succeeds..… Better Together! Returning to the history lesson, Scotland is “celebrating”, this year, the 700th anniversary of the Battle of Bannockburn which was the decisive rout of English troops in Stirling and the beginning of Scottish Independence. England is still often referred to as “The Auld Enemy” despite the Act of Union and the establishment of a United Kingdom. This rivalry is intense in sport and now politics. Scottish history is well taught in Scottish schools but rarely in English ones so the emotional leverage that the YES campaign brings has a real chance of winning the “Battle of the BallotPoll”.

www.britcham.or.id

39


ADVERTORIAL

“WHAT MAKES A SCHOOL INTERNATIONAL?”

Singapore International School (Indonesia) Jl. Bona Vista Raya – Lebak Bulus Jakarta Selatan 12440 (+62 21) 759 14414 www.sisschools.org

“An International school is loosely defined as a school that promotes international education, in an international environment, either by adopting an international curriculum such as that of the International Baccalaureate or Cambridge International Examinations, or by following a national curriculum different from that of the country the school is located in.” - Wikipedia-

Some of the characteristics are: • Transferability of the student’s education across international schools. • A moving population (higher than in state schools or public schools). • Multinational and multilingual student body • An international curriculum.( e.g. IB - DP, MYP, PYP) • International accreditation (e.g. CIS, IBO, North Eastern ASC, Weston Ass. of Schools and colleges were mentioned by the group). • A transient and multinational teacher population. • Non-selective student enrollment. • Usually English or bilingual as the language of instruction

These schools cater mainly to students who are not nationals of the host country - but not exclusively - such as the children of the staff of international businesses, international organizations, foreign embassies, missions, or missionary programs. Many local students attend these schools to learn the language of the international school and to obtain qualifications for employment or higher education in a foreign country. International schools come in many different shapes and sizes and the term itself, includes a variety of school systems encompassing a wide variety of formats and curricula, with some being more international than others. In order to be considered an actual international school, it is widely agreed that a school generally follows a national or international curriculum different from that of the host country. Additionally, an emphasis is placed on international education (with such programs as the IB) and global citizenship. Rapid Growth The international school market has experienced explosive growth over the past 10 years with the number of international schools more than doubling across the globe. This past year alone, 345 new schools were added to the network of

40

issue 2 - 2014

thousands of international schools worldwide. ISC Research, a UKbased organization dedicated to analyzing, researching and tracking developments in the international school market, calculates that there are currently over 2.8 million students enrolled in international schools around the world. More than two-thirds of the annual increase for 2012 came from Asia where ISC reports 238 new schools were added this year alone. This is largely fueled by China where the growth in foreign businesses, the expatriate community, and the export market mirrors the expansion of the international schools market. With 46 new schools, China accounts for one in five of the new Asian schools started this past year. Who are the Students? Students are the children or dependents of employees of international businesses, international organizations, foreign embassies, NGO’s, missions, or missionary programs. In addition to the children of expatriates, many schools have local students from the host country attending. International schools are growing in popularity for host country students and their parents are willing to pay the high tuition so their children can learn the language of the international school (mostly English) and obtain qualifications for higher education in a foreign country.


Some international schools have restrictions on the number or percentage of host country students the school can admit, while others are unable to admit host country students at all. For example, the American Embassy School in New Delhi does not admit students of Indian nationality, except in specific circumstances as mandated by the Government of India’s Ministry of External Affairs.* The first International schools were founded in the latter half of the 19th century in countries such as Japan, Switzerland and Turkey. Early International schools were set up for those who are constantly on the move, like children of personnel of international companies, international organizations,

NGOs, embassy staff with the help of nations having large interests in the hosting nation: for instance, American diplomats and missionaries often set up schools to educate their children; children of American military and army families often attended Department of Defense Dependents Schools (DoDDS); French diplomats and business families founded similar schools based on the French curriculum. Over time globalization has proven that education no longer can exist solely on a national level. “In a global economy, it is no longer improvement by national standards alone. The best performing education systems internationally provide the benchmark for success,” said OECD Secretary-General Angel Gurría launching the annual

‘education at a glance’ report in Paris. Increased movement of people around the globe has created a generation of children growing up and residing in foreign countries, creating and expanding this market for international schools that can cater for their educational needs. More than two-thirds of the annual increase for 2012 came from Asia where ISC reports 238 new schools were added this year alone. This is largely fueled by China where the growth in foreign businesses, the expatriate community, and the export market mirrors the expansion of the international schools market. With 46 new schools, China accounts for one in five of the new Asian schools started this past year.

www.britcham.or.id

41


LIFESTYLE & HEALTH 1

Getting It Controlled

2

1. Dr Rachael Teo MBBS (S’pore), MRCP (UK), M Med (Int Med), FAMS Raffles Skin & Aesthetics, Dermatology Dr Rachael Teo, a Dermatologist at Raffles Skin & Aesthetics Centre, has been practising Dermatology since 2004. She obtained her medical degree from NUS in 2000. She obtained her Master of Medicine (Internal Medicine) in 2004 and was elected a Member of the Royal College of Physicians (UK). She completed Advanced Specialist Training in Dermatology at Changi General Hospital (CGH) and National Skin Centre, and has been a MOH accredited dermatologist since 2009. Clinical Interest: General and aesthetic dermatology, laser surgery, atopic dermatitis (eczema), immunobullous diseases and collagen vascular disease affecting the skin, medical dermatology

2. Dr David Chan Pai Ling MB ChB (UK), MRCS (Edin), M Med (Ophth), FAMS, FRCS (Edin) Raffles Eye Centre, Ophthalmology Dr David Chan is an Ophthalmologist. He graduated from the University of Leicester, UK and obtained his Fellowship from the Royal College of Surgeons of Edinburgh and Masters in Medicine from NUS. Clinical Interest: Laser refractive surgery (LASIK and PRK), complex cataract surgery and general ophthalmology

Having chronic skin and eye problems is not something that we look forward to. It does not just affect the skin and eyes; it can also affect your sleep, social life and overall well-being. But the right management of such conditions and simple prevention tips can make a difference.

• •

What is Psoriasis? Psoriasis is a fairly common inflammatory skin disease that affects the life cycle of skin cells. It causes cells to build up rapidly on the surface of the skin, forming thick red scaly patches with silvery scales that are sometimes itchy.

Psoriasis is a chronic relapsing disease. Having psoriasis can be embarrassing for some people, and they may avoid swimming and other situations where the patches are shown. It can also be disabling, especially when associated with psoriatic arthritis.

• •

Symptoms

• • •

42

Red patches of skin covered with silvery scales, commonly over the knees, elbow joints, around the umbilicus. The

issue 2 - 2014

scalp is also frequently affected. Itching, burning or soreness Nail changes such as pitting, thickening, ridging or separation from the nail bed (onycholysis) Stiff and swollen joints

Treatments •

Topical: Coal tar containing preparations, topical corticosteroids, Vitamin D analogues, salicylic acid and calcineurin inhibitors Light Therapy (phototherapy): Narrow band UVB phototherapy, PUVA therapy and excimer laser Oral or injected medications (for severe cases)

Lifestyle & Home Remedies

Maintain a healthy weight Use a moisturiser regularly Avoid psoriasis triggers (e.g. infections, smoking, excessive alcohol intake) Learn how to manage stress

What is Eczema (Atopic Dermatitis)? Atopic dermatitis (eczema) is a very common skin condition. It is a chronic relapsing condition that may be associated with other atopic conditions like asthma or hay fever. Eczema may affect any area of your skin, including arms and legs, body, eyelids and around the nipple area. It tends to flare periodically and then subside. The cause of atopic dermatitis may result from a combination of inherited tendencies for sensitive skin, skin barrier defects and alteration in the body’s immune system.


Symptoms • • • •

Itchy dry red patches in the affected areas If infected, skin may ooze, crust and become painful Itching is usually worse at night Generally dry skin

Treatments •

Medications: Corticosteroid creams or ointments, antibiotics, oral antihistamines, oral or injected corticosteroids and immunosuppressive drugs Light Therapy (phototherapy): Narrow band UVB therapy

Lifestyle & Home Remedies • • • • •

Bathe in lukewarm water, avoid excessive bathing Choose mild soaps without dyes or perfumes Moisturise your skin regularly Wear cool, smooth-textured cotton clothing Avoid triggers (e.g. rapid changes of temperature, sweating, stress) that may worsen inflammation

Blepharitis is often a chronic condition that is difficult to treat. Blepharitis can be uncomfortable but it does not usually cause permanent damage to your sight.

inadequate if you do not produce enough tears or if you produce poor quality tears.

Symptoms •

Symptoms • • • • • •

Watery and red eyes Gritty and burning sensation in the eye Eyelids that appear greasy Itchy, red and swollen eyelids Flaking of skin around the eyes Sensitivity to light

• • • • • •

Treatments •

Clean the affected area regularly with warm water help control symptoms Eye drops or ointments containing steroids can help control inflammation in the eyes and eyelids. Eye drops containing antibiotics applied at the eyelids may help control blepharitis caused by a bacterial infection.

Lifestyle & Home Remedies • • •

Clean your eyes daily with warm water Stop using eye makeup with inflamed eyelids Control dandruff that is contributing to blepharitis

Treatments •

Closing tear ducts to reduce tear loss • Cover eyes with special contact lenses • Unblocking blocked eye glands • Medications: • Antibiotics to reduce eyelid inflammation • Prescription eye inserts that work like artificial tears • Prescription eye drops to control eye inflammation

Home Remedies •

• •

What is Blepharitis? Blepharitis is an inflammation that affects the eyelids and usually involves the part of the eyelid where the eyelashes grow. It commonly occurs when tiny oil glands located near the base of the eyelashes malfunction which leads to inflamed, irritated and itchy eyelids.

What are dry eyes? Dry eyes occur when your tears are not able to provide adequate moisture for your eyes, therefore making you feeling uncomfortable. Tears can be

Increased eye irritation from wind or smoke Eye fatigue Sensitivity to light Stinging, burning or scratchy sensation in eyes Difficulty wearing contact lenses Periods of excessive tearing Blurred vision, often worsening after focusing for prolonged period

‘Add tears’ (drops or ointments with the over-thecounter eye drops for mild cases Wash eyelids with warm water to control inflammation Use mild soaps to wash your eyelids

Raffles Medika Indonesia Menara Anugrah 1st Floor, Kantor Taman E3.3. Jl. DR Ide Agung Gede Agung Lot. 8.6 - 8.7 Kawasan Mega Kuningan, Jakarta 12950 Phone : (021) 5785 3979 Fax : (021) 5785 3977 24 Hour Hotline: (65) 6311 1111 Email: enquiries_indonesia@raffleshospital.com

www.britcham.or.id

43


LIFESTYLE & HEALTH

Make Sure Your International Health Insurance Policy Responds When Needed If you fall ill or suffer a medical emergency, you want to be sure that you will receive top quality medical treatment. International health insurance is essential to provide protection against the cost of medical care in Indonesia and around the world. It allows you to receive in-patient and outpatient care locally or to travel to another country for care, if it is not available locally. International health insurance usually allows you to receive emergency medical evacuation and repatriation by air or road for medical treatment. In common with all insurance, private medical insurance plans have terms and conditions and may exclude some claims. When you are buying a policy read it carefully to understand what is covered and what is excluded. That way there’ll be no surprises when you need to claim. If you are unsure about any terms, ask your broker or insurer. You must take care to tell your insurer if you are aware of any circumstances which may mean you might not be covered, such as a previous medical condition or travel to a dangerous country. Reputable insurers will work hard to make sure you are covered and in many cases they will be able to make cover available in return for an additional premium. Here are some of the more common terms and conditions to familiarise yourself with:

44

issue 2 - 2014

Adi Warsono International Health Insurance Division General Manager, PT. Bess Central Insurance, Jakarta, in association with InterGlobal

Geographic limits of cover Nearly all international health insurance plans offer different areas of cover. Say, for example, worldwide excluding the United States, or cover for a specific region such as Asia or Europe. International health insurance plans allow you to travel within your area of cover for treatment. For example, you are working in a remote part of Sumatra and fall seriously ill. You have bought worldwide cover, so your medical insurer decides to transfer you to the closest centre of medical excellence. This could be either in Jakarta, Kuala Lumpur in Malaysia or Singapore for treatment. In this example you may receive treatment in a different country than your country of residence, but you are covered as Kuala Lumpur and Singapore are in your overall geographic area of cover. It is important however that you stay within your area of cover to retain protection from your insurance. Many plans will offer emergency cover for travel outside your area of cover, but remember that if you undergo planned treatment outside your area of cover your insurer may decline a claim for treatment. If you expect to work in the U.S. but your worldwide cover

excludes the U.S., speak to your broker to see if you can extend your plan to include cover in the U.S. International plans can also be portable. This allows you to move from country to country and remain insured. You could, for example, move from a job in Jakarta, to a new role in Kuala Lumpur. If your insurer is happy with your change in circumstances, it’s likely that no new arrangements will be needed if your work takes you from one country to another. This is subject to the underwriters’ acceptance and any local regulations that may apply to the new country. •

Pre-existing medical conditions Worldwide health insurance plans do not automatically provide cover for known pre-existing medical conditions. The majority of plans are underwritten on a ‘moratorium’ basis. This is by far the most straightforward way to buy cover, as it eliminates the need to complete lengthy medical questionnaires. Under a moratorium plan any medical conditions that have existed before your plan starts will be excluded from cover for the period of the moratorium. For example, if you were treated for back pain six months before you took out a


moratorium plan, you would have to remain symptom-free and have no treatment for the duration of the moratorium before your back condition would be covered under your policy. It is important to understand that the moratorium is based on whether you have symptoms, needed treatment, or have asked for advice for a medical condition and not whether you made an insurance claim. Any pre-existing conditions will be checked against your medical records in the event of a claim. Take care to double check the length of the moratorium. Two years is common; longer periods could be a disadvantage in the event of a claim. If you are looking to have cover for pre-existing medical conditions, make sure you tell your insurer. The company may be able to provide cover on a full medical underwriting (FMU) basis. Under this approach, your insurer will ask you to complete a detailed medical questionnaire. After an assessment of your medical history, and before the start date of your plan, you will either be offered cover for the pre-existing condition for an agreed premium, your pre-existing condition will be permanently excluded from cover, or there could be a mixture of both. In some cases the FMU application could be declined. As in the previous example, if you declared your previous treatment for back pain to your insurer, the company may be willing to offer cover against a re-occurrence for an increase in premium. For people with complex medical histories, this offers complete transparency about what is covered and what is excluded from cover.

Plan and benefit limits All international medical insurance plans have limits on the amount they will pay out for treatment. These are usually termed as ‘overall plan limits’, ‘benefit limits’ and ‘lifetime limits’. Make sure that your plan provides sufficient cover for your needs as you will be personally liable for any medical costs in excess of these limits.

The good news is that many insurers will try to accommodate your needs if you tell them about your plans in advance. For example if you are normally based in Jakarta, but your work took you into a dangerous location or war zone and you had not told your insurer, you may not be covered. The answer is to disclose your plans to your insurer. The company will decide whether to offer you cover and any premium loading required, or to decline cover. Either way you would understand exactly where you stand.

‘Overall plan limit’ is the total amount that a plan will pay out for your medical treatment in each plan year. Most plans will offer limits from US$1 million upwards depending on the level of cover. Discuss your overall plan limit with your broker to make sure that you are happy that the cover is sufficient. ‘Benefit limits’ set the limit that will be paid out under a specific benefit for treatment you receive each year. This may be a limit of say US$1,000 for outpatient psychiatric treatment or a limit of US$1,500 for complementary or Chinese traditional medicine. ‘Lifetime limits’ set the total amount that will be paid out for specific medical conditions while you are a member of a plan. It is worth bearing in mind that some conditions such as cancer treatment can quickly reach lifetime limits. Instead, you may want to consider a plan that provides cover for these types of conditions up to the overall plan limit on an annual basis. Again, it is a good idea to discuss lifetime limits with your broker to ensure that you are happy with the level of cover offered and the full implications of any limits.

“Needless danger” Most global health insurance plans include a ‘needless danger’ exclusion. This means that you will not be covered if your actions put you at serious risk of needing medical treatment. For example if you travel to a dangerous region of the world where the government has issued travel advisories.

“Innocent bystanders” Although it is rare, people do get innocently caught up in security incidents. What happens if you are injured in a terrorist-related incident or hurt when a political rally goes out of control? Many policies provide full cover to “innocent bystanders” - but others may limit or exclude cover. If you travel to places where there is a risk of instability, check that your policy will respond if the unexpected happens.

Quality worldwide medical insurance will pay for treatment wherever you are in the world. The key is to buy the right level of cover and to fully understand any terms and conditions. That way, you’ll know what your policy will pay out for when it is needed.

www.britcham.or.id

45


LIFESTYLE & HEALTH

David and Goliath: Underdogs, Misfits, and the Art of Battling Giants underdogs and giants. David’s victory was indeed improbable and miraculous.

He shouldn’t have won. Or should he have?

Malcolm Gladwell, the #1 bestselling author of The Tipping Point, Blink, Outliers, and What the Dog Saw, offers his newest and most provocative---and dazzling--book yet. On the battlefield in ancient Palestina three thousand years ago, a shepherd boy felled a mighty warrior with nothing more than a stone and sling, and ever since then the names of David and Goliath have stood for battles between

46

issue 2 - 2014

In the introduction, Gladwell states, “Giants are not what we think they are”. The book sets out with an argument that people misinterpret contests between the strong and the weak by making two mistakes in judgment. First, people tends to forget that being an underdog changes people for the better, and teaches them to win by other, sneaky means. And, second, people tend to ignore the fact that power has its burdens, and what might look to be a clear advantage often hides a hidden set of flaws. In the tradition of Gladwell’s previous bestsellers---The Tipping Point, Blink, Outliers and What the Dog Saw---David and Goliath draws upon history, psychology, and powerful storytelling to reshape the way we think of the world around us.

Thoughts The book is indeed interesting and if you read Gladwell’s other books,

this book has similar elements presents. The book itself consists of 304 pages filled with interesting stories about the underdogs. It was interesting to learn more about the nature of advantages and disadvantages while reading this book. The story of David and Goliath makes me think that power could be a burden and a disadvantage for people at a certain conditions. Indeed in life, the one who could use his disadvantages to his own advantages are those who will probably win the battle in the end. Gladwell’s example of a short teenage girls playing basketball and how the girls learned to dominate the courts on which they played, indeed happens in real life if we observe our surrounding. In the end, I think this book give out a point that people have to work hard to makes his/her flows their plus point if they want to be success. And, by having power, we could become unaware of our own weaknesses and ended up losing all the powers we have.


MEMBER’S ANNOUNCEMENTS

ETIHAD AIRWAYS A380 AND B787 SHOWCASE UNPARALLELED LUXURY, COMFORT AND SERVICE • A380 will debut The Residence by Etihad™ - the only three-room cabin in the sky • New contemporary living spaces on A380 and B787 to transform air travel • First Apartment, First Suites, Business Studio, and Economy Smart Seat to debut On the B787, Etihad Airways has designed an enhanced First Suite, adding many new features including a chilled mini-bar. The Business Studio and Economy Smart Seat will feature on both the A380 and the B787. Etihad Airways is introducing James Hogan, Etihad Airways’ President and Chief Executive the latest Panasonic Officer, unveils the airline’s new Airbus A380 and Boeing 787 eX3 entertainment interiors system across both fleets, providing more Etihad Airways, the national than 750 hours of on-demand airline of the United Arab entertainment, improved gaming Emirates, has unveiled the new and high definition screens across product and service offering on all cabins. its Airbus A380 and Boeing B787 Dreamliner aircraft, including The system has video The Residence by Etihad™, the touchscreen handsets, offering world’s most luxurious living an additional screen for guests space in the air, available only on to maximize their entertainment, the airline’s A380 aircraft. so they can play games or view the moving map while watching The Residence will be the breatha movie. taking and completely new forward upper-deck cabin on the Noise cancelling headsets are A380. Accommodating single provided across all cabins, with or double occupancy, it features built-in magnetic audio jacks to a living room, separate double ensure the best sound quality. bedroom and ensuite shower room. Guests in The Residence The A380 aircraft will have full will also have a personal Butler. mobile and Wi-Fi service while the B787 will be equipped with With the launch of these new Wi-Fi. fleets, the Abu Dhabi-based airline will also redefine and Unveiled at a global media rename its cabin classes. launch in Abu Dhabi today, Sunday 4 May, the new cabins The A380 will feature the and service offering follow the revolutionary First Apartments, airline’s pledge to transform air which are fully private suites with travel and make every guest a separate reclining lounge seat journey a remarkable one. and full-length bed, as well as a chilled mini-bar, personal vanity James Hogan, Etihad Airways’ unit and wardrobe. President and Chief Executive Officer, said: “These new living Etihad Airways has allocated the spaces will raise inflight product upper deck of the A380 to its and service standards to their premium cabins. highest level yet in commercial

aviation and alter air travellers’ expectations of inflight comfort and luxury forever. “Etihad Airways’ A380 and B787 will deliver the most advanced airline cabins in the industry, while meeting all weight, range and cost targets at our desired seat count. This will allow us to offer products unparalleled in quality and style, yet at competitive prices across all three cabins.” In 2008, recognising that no single design agency could deliver its vision for the new cabins, Etihad Airways established the Etihad Design Consortium (EDC) which brought together three leading design companies, Acumen, Factorydesign and Honour Branding to develop innovative cabin and seat designs for the new fleets. The EDC collaborated with Promise Communispace, a leading co-creation agency, to launch comprehensive consumer research and workshops in Abu Dhabi, Sydney, London and New York, with the goal of understanding what makes a ‘perfect flight’ and asking consumers to help design the perfect airline. Eighty per cent of the new product offering is a direct result of the feedback and information garnered from these workshops. Etihad Airways’ design vision was to bring the individuality and exclusivity of a luxury boutique hotel experience to the sky in a way that embraced Arabian Modernism, an aesthetic that combines the traditions of the region with contemporary design.

www.britcham.or.id

47


(Left to right – all Etihad Airways) Peter Baumgartner, Chief Commercial Officer; James Hogan, President and Chief Executive Officer; Hareb Almuhairy, Vice President UAE.

The Residence by Etihad™ The Residence, which is certified by the European Aviation Safety Agency (EASA) for single or double occupancy, offers levels of luxury and total privacy normally found only on private jets. Each Etihad Airways A380 will offer a boutique version of The Residence with different color palettes, table marquetry and custom carpets. Guests in The Residence will have the services of a personal Butler throughout their flight. These fully trained service professionals will receive specialist training at the Savoy Butler Academy in London. Guests in The Residence will also have a dedicated VIP Travel Concierge team who will ensure every detail of their travel experience, including ground transport, cuisine, and amenities, are tailored to their requirements. First Apartments Etihad Airways will redefine First Class and set a remarkable new industry standard with the launch of the First Apartment on the A380. Nine First Apartments will be installed on the upper deck in a 1-1 configuration creating the only single aisle First Class cabin in the industry. Each First Apartment, which has a 64 inch high sliding door, includes a reclining armchair and a full-length ottoman, both upholstered by Poltrona Frau. The ottoman transforms into a separate 80 inch long fully flatbed. The First Apartment, which also includes unique features such as a chilled mini-bar, a personal vanity unit and a swiveling TV

monitor for viewing from either the seat or the bed, has a 74 per cent larger footprint than the airline’s current award-winning First Class Suites.

socialising.

A fully equipped shower room is available on the A380 for exclusive use by First Class guests.

Economy Smart Seat New Economy Smart Seat will offer a unique ergonomic fixedwing headrest, giving guests a place to rest their head for added comfort and relaxation.

First Suites On the B787, Etihad Airways has designed an enhanced First Suite with many new features. The eight First Suites in a 1-21 configuration along a unique curved aisle, another first in commercial aviation.

The TV has a USB connection so it can be used for sharing content or it can also be set to the airline’s Live TV channels for sporting and other events.

The seat also has a lumbar support feature, allowing guests to adjust their seat comfort, and an 11 inch personal monitor screen, with all the IFE peripherals conveniently set into the seatback in front.

Each completely private First Suite has a large seat and ottoman, both upholstered by Poltrona Frau, which converts into an 80.5 inch long full-flat bed.

The latest Panasonic eX3 personal entertainment system, of which Etihad Airways is a launch customer, is installed across all cabins

On the centre seats, the armrests retract and the suites can be joined to create a ‘double’ bed. Other features include a chilled mini-bar and a 24 inch TV monitor.

Cabin Entrances A key design objective for Etihad Airways was to transform the boarding experience making it more akin to stepping into the lobby of a boutique hotel.

Business Studios On both the A380 and the B787, Etihad Airways will launch its new Business Studios which provide 20 per cent more personal space than the airline’s current business class seat.

In all entry-ways in both aircraft and in all cabins, the galley equipment is concealed behind custom Arabic fretwork screens and blinds, while the trolleys are covered by elegant woodfinish doors, setting a stylish and welcoming environment for all guests.

Configured 1-2-1 in a forward and aft ‘dovetail’, the Business Studios all have aisle access and the seat converts into a fully flat bed of up to 80.5 inches long. With its privacy, ample storage and surface space, the Business Studio has been designed with the diverse needs of the premium business or leisure traveller firmly in mind. The Lobby On the Airbus A380, First and Business Class guests will be able to relax in The Lobby which is a serviced lounge and bar area located between the First and Business cabins. Providing a semi-circular leather sofa, a marquetry table and a large TV screen, The Lobby is designed for relaxing and

Importantly for the airline’s Muslim guests, Etihad Airways has developed prayer areas which can be curtained off for privacy and are equipped with a real-time electronic Qibla-finder showing the exact direction of Mecca based on the aircraft’s geographical position. In the premium class boarding areas, Etihad Airways will collaborate with cultural institutions in the UAE to exhibit artwork and artefacts in display cabinets installed throughout. Items from the Etihad Airways Boutique Duty Free catalogue will also be displayed. With the launch of these new aircraft, Etihad Airways will update its dining equipment, amenities and soft furnishings across its entire fleet.


MEMBER’S ANNOUNCEMENTS

THE CRANE IS BACK IN JAKARTA FROM JUNE 1st, 2014 Lufthansa brings back its Jakarta flight to connect with the largest Europe network Effective on 1st June 2014, Lufthansa will offer you a flight of its own from Jakarta to Lufthansa’s Frankfurt hub with a choice of convenient onward connection to more than 170 destinations in Europe and beyond. We will fly five times a week from Jakarta to Frankfurt via Kuala Lumpur with the Airbus A340-300 that will serve you with 42 seats in the Business Class and 225 seats in the Economy Class. This flight will carry Lufthansa brand new flat-bed Business Class. Check it out!

Flight No.

Origin

Time

Destination

Time

Operating days

LH783

Jakarta

19:35

Kuala Lumpur

22:35

Mon, Tue, Fri, Sat, Sun

LH783

Kuala Lumpur

00:05

Frankfurt

06:55 (+1)

Mon, Tue, Fri, Sat, Sun

LH782

Frankfurt

21:30

Kuala Lumpur

15:35 (+1)

Mon, Thu, Fri, Sat, Sun

LH782

Kuala Lumpur

17:25

Jakarta

18:20

Mon, Thu, Fri, Sat, Sun

You will also be able to fly between Jakarta and Kuala Lumpur on Lufthansa, earn and redeem Miles and More/Star Alliance mileage and experience the same long-haul high-standard service on the short-haul trip. Promotional fares to Europe starts from USD 838* and from only USD 167* to Kuala Lumpur. Get the special price with the special flight for your special holiday with Lufthansa. Book your flight now at www.lufthansa.com. Hurry, limited seats available! We look forward to welcoming you on board. *Return ticket in Economy Class, include tax and surcharges. Subject to change and based on availability. Terms & conditions apply.


NEW MEMBERS

INDIVIDUAL MEMBERSHIP

Mr. Jastiro Abi jastiro@ bakrietelecom.com

Mr. Basil Gary Michael Gouge basil_gouge@ hero.co.id

Mr. Alex Ho alexhowm.osi@ gmail.com

Mr. Robert Teasdale robert@ threelionssport.com

STANDARD MEMBERSHIP Mr. Ramesh Divyanathan President Director BMW Group Indonesia

BMW Group Indonesia is a wholly-owned subsidiary of Munichbased Bayerische Motoren Werke (BMW) AG in Germany. The establishment of this subsidiary in April 2001 reflects the BMW Group’s confidence in the long-term future of Indonesia. BMW Indonesia Group activities cover the wholesale of BMW and MINI vehicles, spare parts and accessories, as well as the overall planning of sales, marketing, after-sales, and related activities in Indonesia. Its dealership network covers 17 new-car dealers and 5 BMW Premium Selection facilities spread out in various cities in Indonesia. Selected models of the BMW 3 Series, BMW 5 Series, BMW X1 and BMW X3 are assembled in Indonesia by a local partner.

Mr. Andrian Syahputra CEO andrian.syahputra@ ariamedia.co.id

Mr. Jentri Izhar Head of MINI jentri.izhar@bmw. co.id

Mrs. Nancy Hoffmann MINI Marketing Manager nancy.hoffmann@ bmw.co.id

Website : www.MINI.co.id Facebook: MINI.Indonesia Twitter: MINI_Indonesia PT. Maxindo International Nusantara Indah Jl. Sultan Iskandar Muda no. 99, Arteri Pondok Indah Jakarta Selatan 12240 Tel. +62 89 8899 6464 (BB PIN: 21480F49) Email sales@nusantara-mini.co.id

Ms. Nandhita Dhea Maharani Account Executive nandhita.dhea@ ariamedia.co.id

Ariamedia is a design consultancy based in Jakarta that strives for perfect balance between ideas and design. We believe that strong brands consist of great ideas, executed through good strategy and visually defined by memorable design. Ariamedia is working across a broad range of disciplines, from branding, print to website design. Our unique team consists of skilled strategists and designers who are intensely curious and passionate about design. Some of our recent clients are Hutama Karya Realty, Indonesia Stock Exchange, AAA Securities, Trust Line Marine, Trust Securities, Fortice Serviced Office, MR group, Dahana, Pinang Coal among others. For more information please visit www.ariamedia.co.id Mr. John Halpin General Manager The Oberoi, Bali john.halpin@ oberoihotels.com

Mr. Rudy Baihaqi General Manger The Oberoi, Lombok rudy.baihaqi@ oberoihotels.com

Ms. Sukesi Windyarini Director of Sales Oberoi Hotels & Resorts Indonesia sukesi.windyarini@ oberoihotels.com

Oberoi Hotels & Resorts Indonesia, a division of the Oberoi Hotels and Resorts, is expanding. The Oberoi, Bali has gained renown as a secluded and peaceful beach resort with excellent service and cuisine. Their second property opened January 1997 on the neighbouring island of Lombok. Both resorts complement each other. Emphasis in Lombok is on ocean sports recreational facilities whilst The Oberoi, Bali lies conveniently close to the night life, shopping and cultural centres.

50

issue 2 - 2014


NEW MEMBERS NEW MEMBERS

Mr. Sarwono Satrio Director sarwono@petrotekno. com

PETROTEKNO is a training and consultant organization particularly for Oil and Gas Industry. Established in 2007, PETROTEKNO has continuously challenged to raise the standards of competence development in the industry. PETROTEKNO’s goal and objective, to improve Indonesian National Capacity to International Standards have been in line with SKK MIGAS’ goal for years. To bring an

The smarter way to do business is to do it on your terms. You think of the ideas and bring it to market. What we do is support you with an environment that allows you to do just that. This is exactly the purpose of GreenHub Suited Offices. Like all other great ideas, GreenHub was conceived in 2012 to provide not just your average serviced office, but the tranquil, green environment conducive for the success of the born global firm, companies with the capability to instantly internationalise from inception.

Mr. E. Indra Managing Director indra@ tsmconsultings.com

Headquartered in Jakarta, TSM Consulting Group is established in 2005. We provide an integrated services, a one-stop solution, which comprise of hiring, recruitment and selection, staffing, executive search, BPO and Consulting. Our recruitment and executive search offering is comprised of regional professionals who offer clients a truly unique understanding of their needs inside and out. Our BPO service offers a full range of corporate service, company establishment, visa & immigration service, tax & finance, and human resource & training. Our Consulting service is specialized in M&A,

Pribadi Director hpribadi@ petrotekno.com

international level of quality training, we have been in partnership with well known international organization such as Altor Risk, TTE and POL – OPITO. We are one of very few Training Providers in Indonesia who received OPITO (Oil and Gas International Training Organization) accreditation.

Mr. Danny Wong General Manager danny.wong@ greenhub.co.id SUITED OFFICES FOR BORN GLOBAL FIRMS

Mr. Hendra

Ms. Val Wang Marketing Manager val.wang@ greenhub.co.id

Ms. Amanda Cole Marketing Executive amanda.cole@ greenhub.co.id

Located in Kota Kasablanka, Kuningan and at the fringe of Sudirman’s business district, GreenHub combines this tranquil, green setting with world class business amenities and a complete suite of business solutions. PT Hub Hijau Serviced Offices Level 38, Tower A, Kota Kasablanka Jl. Casablanca Raya Kav 88 Jakarta 12870 Tel: +62 21 2963 8008 Fax: +62 21 2963 8088 Email: info@greenhub.co.id

Ms. Suzi Siregar Finance and Administration Manager suzi@ tsmconsultings.com

Organization Restructuring, Process Optimization, IT Management. Please find out more about us at www.tsmconsultings.com

www.britcham.or.id

51


NEW MEMBERS

PREMIER AND SUSTAINING MEMBERSHIP Mr. Michael Yii Country Manager, Emerging Markets, CIMA michael.yii@ cimaglobal.com

The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world’s leading and largest professional body of management accountants, with over 218,000 members and students operating in 177 countries, working at the heart of business. Professionalism and ethics are at the core of CIMA’s activities with every member and student bound by rigorous standards so that integrity, expertise and vision are brought together. CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of Islamic Finance. CIMA and the American Institute of Certified Public Accountants (AICPA) have formed a joint venture that powers a new designation for management accountants, the Chartered Global Management Accountant (CGMA). The CGMA is designed to elevate management accounting and further emphasise its importance for businesses worldwide. The CGMA recognises the unique role played by management accountants in businesses around the world who are guiding critical business decisions and driving strong business performance. It sets a new standard for global recognition of management accounting by building on the longstanding foundations and thought leadership of the AICPA and CIMA.

52

issue 2 - 2014

Ms. Winnie Ng Corporate Engagement Manager, CIMA winnie.ng@ cimaglobal.com

Mr. Andrias Soesilo Chief Representative, Indonesia, CIMA andrias@ cimaglobal.com

United by global quality standards for ethics and performance, the CGMA maintains distinct credibility and positioning among worldwide business designations. Through a wide range of resources and learning opportunities, the designation further elevates CGMAs’ management accounting expertise, skills, ethical standards, commitment and dedication. The CGMA will quickly become part of the business vernacular, offering management accountants exciting new roles that research shows us key business decision-makers are looking to fill. Those holding the CGMA will be acknowledged as trusted business strategists who can connect the dots between financial fundamentals and physical assets and a broad array of performance factors. For more information about CIMA and CGMA, please visit www.cimgalobal.com.


A Bridge to the World

T students of the British International School excel academically and contribute The to their community, participate at the highest levels of sport, perform artistically and enjoy their time at school. an BIS really is A Bridge to the World. B

For enrollments, please contact Admissions today. Tel: (62-21) 745-1670 • Fax: (62-21) 745-1671 • E-mail: admissions@bis.or.id • www.bis.or.id


You’re just one step away from business opportunities

Join the British Chamber of Commerce in Indonesia WWW.BRITCHAM. or.id

Tel: +62 21 5229453 | Fax: +62 21 5279135 | email: uksme@britcham.or.id | www.britcham.or.id

@BritChamindo

Email us at: Dhini (dhini@britcham.or.id) or call: +62 21 5229453 for booking.


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.