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Ciputra: Builder and Educator

Makasar and Manado — for possible locations for the medical facilities. However, it’s not all business to Ciputra, as he is also keen on devoting his time on philantropy and education. In 2006, Ciputra founded Universitas Ciputra to develop, he said, “the nation’s entrepreneurial spirit”. “We believe that the present world and the future world need all the entrepreneurs who have a burning entrepreneurial spirit, excellent characters and who will be able to be global players.” The Surabaya-based school is located on Ciputra’s own sub-urban satellite city Citra Raya, far from the town’s buzzing atmosphere. “Entrepreneurship holds the key to the future of the developing world. Entrepreneurship brought me from a state of childhood poverty to a life of philanthropy. And just as my own experience as an entrepreneur reaped rewards I never imagined, I believe embracing entrepreneurship will enable nations to make a "quantum leap" from despair to prosperity,” says Ciputra.

At a time when most successful people of his age would rest on their laurels and spend precious moments watching beautiful sunsets, property tycoon Ciputra, 80, is going full steam ahead by taking on giant urban projects. By Lukman Hakim

One of his companies, PT Ciputra Development, this month allocated Rp 2 trillion ($224 million) to finance the Ciputra World superblock and high rise residential complex Ciputra World 2, both in Kuningan, Jakarta. The two projects are scheduled for completion by mid 2012 and mid 2014, respectively.

erty, Ciputra Group has invested in 27 cities throughout the country and three cities abroad. Instead of focusing its investment on Jakarta and the surrounding areas, they have chosen other cities like Kendari, Medan and Ambon. They are ready to launch its project in Tegal, Central Java, by the end of this month. Ciputra Group controls publicly traded Ciputra Development,

which in turn controls Ciputra Property, which manages hotels, office buildings and retail properties. Ciputra has properties in 27 cities across the country and in Hanoi, Phnom Penh and Shenyang, China. Recently, Ciputra Group announced its foray into hospital construction and management by planning to build two to ��

three hospitals annually over five years. The company is set to invest Rp 100 billion to Rp 200 billion ($11.3 million to $22.6 million) for each hospital, which will be called Ciputra Hospital. It plans to develop the hospitals in stages with a target of 10 to 15 within the next five years, spending as much as Rp 3 trillion. The company is looking at five cities — Jakarta, Surabaya, Palembang,

“The hardships of my childhood gave me the desire to make a better life for my family. I was born in a remote village of Sulawesi Island on August 24, 1931. When I was twelve years old, my father was taken prisoner by the enemy and imprisoned on false charges of espionage. He died in captivity. We never learned where he was buried. My family not only lost our father but our small grocery store as well. But I vowed not to remain poor,” he recalled recently. After graduating from senior high school in Manado, he entered the architecture department at ITB in Bandung. In 1957, together with Ismail Sofyan and Budi

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It is not for nothing that Ciputra has often been compared to his American counterpart, New Yorkbased Donald Trump. Another of his company, PT Ciputra Property Tbk., through its subsidiary PT Ciputra Balai Property, plans to build a new business center in Jakarta worth Rp 300 billion ($ 35.1

million). The new business center, Dipo Business Center (DBC), would be built on a 7,000-squaremeter area on Jakarta’s Jl. Gatot Subroto. The construction already started and is scheduled for completion by the second quarter of 2013. It comprises 15 home offices and an 18-storey office building with a total building area of 40,000 square meters. Ciputra Property operates Hotel Ciputra in Jakarta and Semarang, Mal Ciputra in Jakarta and Semarang, and Somerset Grand Citra Jakarta. Ciputra is also set to launch a total of five construction projects next year, the majority of which would be outside Java. Through its three subsidiaries, PT Ciputra Development Tbk, PT Ciputra Surya Tbk and PT Ciputra Prop-

IDR 20,000

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Brasali, college friends who would later become successful busnessmen in their own right, Ciputra founded PT Daya Cipta, an architecture firm in Jakarta, and later PT Pembangunan Jaya. In his long and illustrious career, Ciputra founded three large property development groups in Indonesia: Jaya Group, Metropolitan Group, and Ciputra Group. The groups currently employ more than 15,000 people and pay taxes in excess of $100 million annually. “I was so blessed by the invitation of President Barack Obama to be a panelist at the Presidential Summit on Entrepreneurship in April 2010 in Washington, D.C. Although I could not attend due to my health, I am so glad we were invited because we learned of the Global Entrepreneurship Program (GEP), a new opportunity in which the U.S. government promotes entrepreneurship among Muslim-majority countries. Indonesia was chosen to be the second pilot country,” he said. “I estimate that our country of 240 million people has just 400,000 entrepreneurs who build scalable, innovative companies. That’s less than 1% of the population. Compare that to 13% for the U.S. and 7% for nearby Singapore,” he says. He figures his university could change the country if he could help encourage, create and mentor 4 million entrepreneurs or 2% of the country’s population. “How do you do that? Not with venture capital, but by changing the country’s mindset,” Ciputra says. That, time will tell, may yet be his greatest contribution to the nation.

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A2 October 12, 2011

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Opinion

Great Man, Great King, Great Leader

T By Mohamad Sobary

The people of Solo are very proud of their great poets because Yogyakarta never had one. Ronggo Warsito is one of the great poets it has, whose reputation still lives on until today and who was admired for his ability to ‘read’ the signs of the time that were relevant to the current condition. His thoughts about the “era of madness” had been passed down as a way to look at the “value system” and the dynamics of social changes that are still adopted today and very popular among all social layers. He didn’t actually have the skill to see the future; he only analyzed the socio-political condition at the Solo Palace or locally known as Kraton Solo during the Dutch colonial era which he thought was “devastating” because of an anomie condition he described as tense and “threatening” to the harmony of the Javanese culture during that period of time.

The people of Yogyakarta also had their own pride. They are proud that Yogyakarta had great kings and Solo didn’t. The rich cultural colors that both Kraton Yogya and Solo have are passed down to their generations with enmity, or in sociological term called “cultural animosity”. The fact was that the two Kratons had actually “emerged” from the same ancestor: Raden Sutawijaya, who was later known as Panembahan Senapati. Panembahan – who was during his younger years called Raden Ngabehi Loring Pasar – was recorded in history as the founder of Mataram Dynasty that moved Pajang Kingdom to a new central government he built in Kota Gede called the old Kraton. The founder of the Mataram dynasty (15781601) was a great king. The people called him “Wong agung ing Ngeksigondo”, the great man, the great king, in Ngeksigondo, in the Kota Gede area. He was a student who chewed everything that his teacher, Sultan Hadiwijaya – who was known as Jaka Tingkir at his younger age because he came from Tingkir village – taught him in Pajang. For the Javanese people, to

equip oneself with skills and knowledge and heritage represent their aspirations to become an ideal human being. By mastering both the inner and physical knowledge, Panembahan was able to control the world of spirits. In Javanese myths, Panembahan and all the kings in Mataram after him magically married Ratu Kidul, the ruler of the Southern Sea along the Java Island.

For the Javanese people, to equip oneself with skills and knowledge and heritage represent their aspirations to become an ideal human being.

Here it was crystal clear that the greatness of a king – in his personal capacity – is measured based on how much and how deeply the king masters the inner and physical knowledge and “kawaskitan”, or the ability to understand things that are related to spirits and every phenomena that would happen. Only special people will be able to obtain the “laduni” knowledge – knowledge obtained without having to go through the learning process, which is called “waskita”. So, Panembahan Senopati – as reflected in his title – is called “Rojo asariro pandito – the king that has the spirit and the capacity to become a priest, man of religion.

the complete meaning is: “mbakar beton sepuluh gosong siji kari songo” or burning ten jackfruit seeds, one is badly burnt, leaving only nine. Noteworthy: the joke of a great man can become a reality. Imagine when he is serious. And it did not stop there. The Sultan once tested his understanding about poverty. Was poverty a fate or was it a “worldly invention” that can be overcome with other “worldly inventions”? With this question in mind, the Sultan summoned the kingdom’s ‘gamel’, a person who looks after the Sultan’s horses. The gamel was a poor man and he lived in a village, outside the kraton.

A king whom is respected, obeyed by his people, is also called a great king. Thus a popular idea was launched: “Throne for the People” which suggested that a kingdom and its king provide protections – in many aspects of life – to the people. It would be a great shame for the king and his kingdom if the whole village from one of its areas moved to another kingdom to find a better living as they consider the other kingdom as safer and can guarantee their livelihood.

After depositing hays for the horses, the ‘gamel’ received a watermelon. He said to himself that village people don’t need watermelon. He then went to the market and sold the watermelon. He bought cendol or traditional dessert to quench his thirst from the money he got from selling the watermelon. Now, we all know that the meat of the watermelon had been replaced with gold, jewelries, diamonds, and other valuable gem stones. If these jewelries were sold, the ‘gamel’ would have been rich. And for sure, he would stop working as a ‘gamel’. But a ‘gamel’ remains a ‘gamel’. And the Sultan concluded: it turned out that poverty is a “fate” that had been brought down from the “sky”.

Once upon a time while in front of the Kaaba in Mecca, somebody pulled the Sultan’s robe and he was surprised to learn that it was his own servant that did that robe. The Sultan asked his servant why he was there and how he got there. The servant proudly replied: thanks for your majesty’s “karton luhringo” prayers. The Sultan was obviously in shock. This was because he was only joking about “karton luringo”. Kar means burning. Ton means concrete – the seed of a jackfruit – Luh means ten, Ri means kari or leave, Ngo is “songo”, or nine. So,

This is a folklore of the Yogyakarta people, which has been widely passed down and at the same time to strengthen the greatness of the Sultan among its people until today. The greatness of the Sultan is also attached closely in the people’s hearts because he also synchronized the Javanese

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new year “Suro” with the Islamic new year “Muharam”. The first day of Suro is also the first day of Muharam. Suro is Muharam, and Muharam is Suro. Java and Islam were synchronized to support each other and to enrich one another. Later on, in our era, this spirit is translated as Indonesianization of Islam, and indigenizing Islam: joint ideas that matches with one another, from Gus Dur, Cak Nur and Pak Munawir Sadzali, without any intention to control or dominate but merely to regulate and to offer spirituality to create a peaceful Indonesia both politically and culturally. An inclusive great mind that created peace was already born during the era of the Great Sultan and it was amazing. The Sultan was indeed a great man and he nurtured all sides, including the world of spirits due to his marriage to Ratu Kidul. The Sultan left a trace of “rendezvous”, in the form of a ‘Cepuri”, a romantic and sacred small “palace” in Parang Kusumo, which remains sacred until today. The Sultan’s greatness was written in history when he defeated VOC in Batavia. The great Sultan was very courageous and daring. Even the most wicked VOC trembled when they faced the great confrontation. It was during this era that Mataram reached its glory, its golden era, after the era of Majapahit. However, Mataram experienced a major setback after this while in the hands of the Amangkurats who were unable to fight the Dutch. The Trunojyo rebellion erupted and shocked the Dutch and Kraton that led the Kraton to be moved to Kartosuro. When it was moved again to Surokarto, Paku Buwono II was very weak, he let the condition to deteriorate further. The Chinese rebellion in 1740-1743 made the condition become worse. This was followed by an insurgency by Raden Mas Sudjono, or Pangeran Mangkubumi, and Raden Mas Said, or Pangeran Sambernyowo, who later became Pangeran Mangkunegara I. Finally in 1755, the kraton was divided into two: Solo and Yogya. Kraton Yogya was founded in 1755 under the Giyanti Agree-

ment. And Raden Mas Sudjono, Pangeran Mangkubumi, took the throne with a title: “Sampeyan Dalem Ingkang Sinuwun Kanjeng Sultan Hamengku Buwono, Senopati ing Ngalogo, Abdurrahman Sayyidin Panotogomo, Khalifatullah. Hamengku Buwono is a symbol of a king that serves the world and one who protects every citizen. Hamengku means a leader that has to give more and not ask from its people. For the Javanese people, the Sultan is very ideal because he has to understand where human beings come from and where they will return. Sultan also means that he has to build lives in harmony to create the “manunggaling kawulo gusti” environment. It wasn’t a surprise to see Hamengku Buwono got this title because when he was young; he was Pangeran Mangkubumi and the title basically has the same meaning as Hamengku Buwono. The title Mangkubumi was also not surprising because he was the son of Amangkurat IV, the ruler of the universe. Ngerso Dalem Kanjeng Sulan Hamengku Buwono IX had other greatness because he ruled in a different era. The Dutch was very irritated by him because this Sultan always defeated them. Let’s not forget about Yogya’s huge sacrifice for this republic. If at the time the Sultan wanted to remain a Sultan, Yogya would be considered a foreign country, and that means the leaders of this republic who happened to be in Yogyakarta were in a foreign country – that would make this republic running without leaders. That would have made it easy for the slick Dutch leaders to take over and abort this republic. But the Sultan was “wong agung lan waskito”. And it was he who formulated the suggestion “The Throne for the People”. Until now, the Sultan’s greatness is still maintained. And in Sabdatama, the command and words of Ngerso Dalem, The throne for the People, will live eternally. Only the people who do not understand history and those who do not know how to return favors would insist on eliminating Yogyakarta’s special privilege.

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Until now, the Sultan’s greatness is still maintained. And in Sabdatama, the command and words of Ngerso Dalem, The throne for the People, will live eternally. Only the people who do not understand history and those who do not know how to return favors would insist on eliminating Yogyakarta’s special privilege.

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October 12, 2011 A3

The World THE CHANGING GLOBAL ECONOMY:

Emerging Countries Set to Move Over the past decade the emerging countries have consistently post higher growth rates. According to statistics advanced countries average growth rates were first 2.9% and the emerging countries 3.6%. This has changed to the following comparison: the advanced countries 1.9% and the emerging countries 6.6%. By Atmono Suryo

CHANGING WORLD In this 21st century it is becoming increasingly evident that a different world economic landscape is shaping up. As it now stands the world is still in a stage of transition. Countries should be prepared to be confronted with a number of unexpected developments and to make the necessary adjustments. In this era of globalization some massive changes will be in the making. It is being forecast that there will be a shift of economic power from the West to the East, and that the world will become a multipolar world with a large number of growth poles. Also, that the world economic landscape will undergo meaningful shifts. But one of the most important features of change is the rise of the developing countries and the increasing central role of the emerging countries in the global economy. The developing countries’ difficult struggle to improve their economic and social conditions actually dates back to some 50 years ago, the 60’s and 70’s. It was in 1964 when the Group of 77 Developing Countries came into being, at the first session of UNCTAD

(United Nations Conference on Trade and Development) in Geneva. That was the first attempt of the Third World to close ranks among the developing countries. The G77 launched the concept of the New International Economic Order at the Sixth Special session of the United Nations to bring about a peaceful, just and prosperous world. It also took the initiative to begin the North-South Dialogue between the developed and developing countries. However, all those attempts of the past have failed. But a new momentum is now developing in this 21st century. This will give a chance for the developing countries to achieve growth and welfare for their people and to strengthen their position in the global economy. A highly important development in this era of globalization is the rise of the developing countries in the global economic setting. It will be noted that the emerging countries have been on the move to reform and develop their economies to keep up with the developments in this interdependent and complex world. The projected shift of economic power will slowly alter the world economic landscape. A small number of emerging countries

emerging countries 6.6%. With the 10 emerging countries developing at a faster rate (to be followed soon by other developing countries) this will undoubtedly speed up the changes of the global economic landscape—to become a multipolar world with an increasing number of growth poles not only in Asia but also in Latin America and other parts of the world such as the Gulf countries.

GEO-ECONOMIC LANDSCAPE

THE BIG TASK AHEAD

ADVANCED G20 BRICS OTHER EMERGING G20 OTHER ADVANCED OTHER EMERGING

have been the forerunners of the developing countries in their respective regions. China and India are in the lead in Asia, Brazil in Latin America and Russia covering the Eastern part of Europe extending to Asia. The BRIC (Brazil-Russia-India-China) were followed by 6 other emerging countries, including Indonesia, to come to the present group of 10 Emerging Countries. In addition changes will also take place in the strategic areas of economic paradigm, economic policies and business practices. It covers the area of economic and social development and trade. It also covers the crucial area of investments and services and importantly the critical area of finance which continues to be in disarray. The emerging countries are the ones riding high on the waves of

these changes or even triggering the necessary changes by taking advantage of the new opportunities open to them. This is happening in East Asia with the two giants in the lead, China and India, taking advantage of the experience of their predecessors of earlier times, Japan, South Korea, Taiwan and the other Asian tigers.

GEO-ECONOMIC LANDSCAPE The map above shows the need and importance of developing closer cooperation between the emerging countries and the more advanced countries with the two main groupings cooperating under the G20 umbrella. As is known the G20 consists of the advanced countries (of the G7/G8 which consist of the United States, Canada, Germany, France, the United Kingdom and Italy – plus Australia and

South Korea. And the 10 Emerging countries are Brazil, Russia, India, China, Mexico, Argentina, Turkey, Indonesia, South Africa and Saudi Arabia. They consist of the BRIC countries (yellow) plus the other emerging countries (blue) which includes Indonesia. The G20 grouping represents the largest part of the world in terms of geographic size but also in terms of GDP/economic size. It represents 85% of of the world GDP, 80% of world trade, and twothird of the world population. Another important point to note is that over the past decade the emerging countries have consistently post higher growth rates. According to statistics advanced countries average growth rates were first 2.9% and the emerging countries 3.6%. This has changed to the following comparison: the advanced countries 1.9% and the

It is of strategic importance for the global economy that in the coming years the emerging countries should be on the constant move. Not only to occupy a better “place in the sun” in the global economy, but also to achieve a new world economic order which which was the goal of the G77 developing countries years ago (Note: Indonesia belongs to the Group of the 77 developing countries). The World Bank, Asian Development Bank, BBVA and many media predict that the ten big emerging countries, located in every part of the world, will change the face of global economics and politics.

10 BIG EMERGING COUNTRIES Latin America

Mexico, Brazil, Argentina

Asia

China, India, South Korea, and Indonesia

Others

South Africa, Poland, Turkey

• According to BBVA Research the high growth rates of the 10 emerging countries is expect-

ed to contribute 51% of global growth compared to 14% of the G7 developed countries. • With regard to regional development East Asia is being considered as the most dynamic region in the global economy, led by two countries which were for centuries considered as one of the less-developed countries with enormously large populations. They were for a long time considered as the sleeping giants. With the advanced countries presently in decline, the emerging countries have now the obligation to become another big power house in the global economy alongside the more advanced countries. The emerging countries should be able to accelerate their moves to become the new dynamics of the global economy. To that end, East Asia should become the largest contributor in that massive undertaking. It has all the potentials to become an important driver of growth of the global economy. East Asia has a very large GDP, an enormous expanding market, huge (younger age) human resources with increasing purchasing power and a very large middle income group. It has very large exchange reserves thanks to China, and an expanding industrial growth combined with rising “Asian multi-national companies”. On top of it, it carries the historic call to be the center of the global shift from the West to the East. The writer is former ambassador to the EU.

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A4 October 12, 2011

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The Economy ECONOMIC UPDATES Govt to Offer Retail Bonds The government is planning to offer retail state bonds series ORI008 on October 7-21, 2011 to meet part of financing target in the revised 2011 state budget. The three-year bonds due on October 15, 2014 will be issued at a coupon of 7.30% per year, Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said in a statement on Thursday. The allotment date of the bonds will be October 24, 2011 and the settlement date on October 26, 2011. Subscription to the state bonds is set at a minimum of Rp5 million and a maximum of Rp3 billion with coupon payments on every 15th of the month. "Coupon payments will for the first time be made on December 15, 2011. The coupon will be profitable because it is higher than the average deposit rate of state banks. In addition, ORI will be profitable because it can be traded," he said. He said the aim of issuing ORI008 was to meet part of the financing target in the revised state budget as well as to develop the domestic market of state debt securities by diversifying financing source instruments and expanding investor`s bases.

Govt Set to Take Over Inalum The government is determined to take over the management of PT Indonesia Asahan Aluminium (Inalum) in 2013, Industry Minister MS Hidayat said here last week. "With this decision, North Sumatra will be able to become the biggest aluminum cluster," he said. He made the statement in reply to MS Hidayat a question from a Regional Representatives Council (DPD) member from North Sumatra regarding the government`s stance on the issue as the plant had been managed by Japan for the past 30 years. The minister admitted that Japan still wished and had made a relevant proposal to continue operating and managing the aluminium plant. "The government is determined to take over Inalum in connection with the ban on export of raw materials to be issued by the government in 2014," he said. He said there would be a negotiating team to discuss the matter with the Japanese. The minister however could not yet disclose more details on the government`s preparations for the planned takeover, especially with regard to the new management system or the company that would eventually run the enterprise. "I cannot yet give more details on the planned Inalum takeover but I can assure you that the government will take it over," he said. He said the country, including North Sumatra province where the aluminium production facilities were located, would obtain more benefit from their existence if they were taken over by the government.

RI Exports in August Reach $18.81 billion Oil and gas exports in August reached $4.09 billion while non-oil and gas exports were recorded at $14.72 billion.

Indonesia's total exports reached US$18.81 billion in August 2011, up by 8% from the previous month. Head of Distribution and Service Statistics of the National Statistics Agency (BPS), Djamal, said here on Monday total exports in August were also up by 37% from the same period last year. Oil and gas exports in August reached $4.09 billion while nonoil and gas exports were recorded at $14.72 billion. "Oil and gas exports rose 7.59% while non-oil and gas exports 8.12% from the previous month," he said. Djamal said most of the country`s exports in August went to China worth $1.92 billion, followed by Japan ($1.53 billion) and India ($1.39 billion). "Exports to the three countries comprised 32.89%," he said. Cumulatively the value of exports from January to August 2011 reached $134.85 billion or rose 36.58% compared to the same period last year. In the period the value of non-oil and gas exports reached $107.37 billion with mineral fuels, fat and oil contributing the largest respectively at $16.97 billion and $13.96 billion.

Exports of oil and gas in the period were recorded at $27.47 billion with gas and crude oil exports contributing the biggest respectively at $15.36 billion and $8.76 billion. Djamal said Indonesia`s imports in August were recorded at $15.05 billion, down 7.12% from the previous month. Nonoil and gas imports dropped by 9.37% to 11.25%. The biggest non-oil and gas imports consisted of electronic goods worth $2.09 billion. Although imports were lower their value was still higher that the previous month`s. Cumulatively imports from January to August 2011 rose 30.90% to $114.84 billion from those of the same period last year. Non-oil and gas imports in the first six month period of 2011 were also up 25.18% from those of the same period last year to $87.99 billion. China was the biggest supplier if non-oil and gas imports comprising 18.61% of the market share worth $16.37 billion. Japan followed in the second place with exports worth $12.10 billion and Singapore in the third place with exports worth $7.07 billion.

RI's Economic Growth to Reach 6.6% in Q3: Minister The Indonesian economy during the third quarter of 2011 is believed to have reached a growth rate of 6.6%, Finance Minister Agus Martowardojo said. Speaking at the Asian Roundtable on Corporate Governance here on Monday he said the projection was based on growth in the investment and consumption sectors which had been the biggest contributors to economic growth for some time. "I think if growth in the investment and other sectors in Indonesia are maintained at the rates we have seen lately it is likely that Indonesia`s economic growth may reach 6.5 to 6.6% in Q3," he said. In annual terms however the

could continue until 2012 to make the growth to reach only 3.0%. "We know that a lot of banks in Europe especially are facing liquidity and confidence problems, having portfolio in Asia including Indonesia and so we must prepare ourselves well," he said. Finance Minister Agus Martowardojo minister still holds to the revised budget assumption of 6.5% in view of the unpredictable impact of the current European economic crisis. "We are indeed concerned over current global economy whose growth has been revised from 4.4% to 4.0%," he said. The minister also warned of a global economic slowdown that

In view of that the minister said he could not as yet confirm whether or not the 6.7% growth assumption for the 2012 draft budget would be changed. He said however if global conditions remained uncertain and affected badly on the country`s economy the government would consider proposing a change in the growth assumption in the budget ahead of schedule.

House Sets Electricity Subsidy At Rp45 trillion for 2012 The House of Representatives (DPR) has approved the government-proposed budget allocations of Rp45 trillion for electricity subsidy in 2012. All factions in the House Commission VII expressed their approval of the proposal at a working meeting with Energy and Mineral Resources Minister Darwin Saleh here last week. However, the House Commission gave notes to the government`s proposal to raise basic electricity tariff by 10% effective April 1, 2012. The House asked the proposal for electricity tariff hike to be re-

viewed. The government proposed an electricity subsidy of Rp45 on assumption that basic electricity tariff would increase by 10% effective April 1, 2012. However, the policy did not apply to incapable customers with 450 VA. With the 10% increase, the electricity tariff would go up to Rp796 from Rp726 per kWh. The electricity subsidy of Rp45 trillion would consist of Rp40.5 trillion from subsidy in the current year, a shortage of Rp4.5 trillion based on the results of audit by the State Audit Board, and Rp4.5 trillion from the transfer of subsidy from 2012 to 2013.

The assumed subsidy was among others based on the rupiah`s exchange rate of Rp8,800 per dollar, oil price of $90 per barrel, and electricity sales of Rp172.8 trillion. Achmad Riyaldi of the House Commission from the Justice and Prosperous Party (PKS) said the budget allocation of Rp45 trillion accorded with the spirit of lowering power subsidy in stages. Electricity subsidy is expected to reach Rp65.5 trillion for 2011. "We have agreed on the budget allocation of Rp45 trillion but not the increase in electricity tariff because we still have another alternative," he said.

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October 12, 2011 A5

The Economy Economist: RI Needs to Grow By at Least 9% To achieve a 9% growth infrastructure had to be improved.

An economist said Indonesia needs to grow minimally 9% percent in 2015. A growth of 6.5% would not as yet guarantee a better life for the Indonesian people, the observer, M. Chatib Basri from state University of Indonesia, said in a CIMB Niaga Economic Outlook Conference here on Wednesday. He said Indonesia needs to grow minimally 9% in 2015 considering global volatility and future challenges. "A target of 6-7% growth I am convinced we could realize without government intervention. The problem is the target is not sufficient. We need growth at nine percent levels," he said.

"That is why companies like Astra or Unilever can grow well in the middle of current crisis. So without government efforts we could grow," he said. M. Chatib Basri He said if Indonesia could grow at only 6-7% people would be trapped into a potential poverty because it would not be able to catch up with the emerging markets. He said because of the large population in the working force category it would be easy for Indonesia to grow by 7% because domestic consumption rate is high, he said.

To achieve a 9% growth Chatib said infrastructure had to be improved. With the settlement of infrastructure problems logistic obstacles that have so far hindered domestic trade would be overcome, he said. "Why doesnâ&#x20AC;&#x2122;t Astra want to build a plant here? It is because the logistics cost between regions is far higher than the cost of imports. So, if the problem could be overcome I believe a 9% growth is not impossible to achieve," he said.

Govt Targets 5% Growth in Annual Rice Production The government is targeting an annual 5% growth in rice production to achieve a surplus of 10 million tons in 2014-2015, a minister said. "A road map was discussed just now to achieve the production growth with each region setting an average annual 5% growth," chief economic minister Hatta Rajasa said after a coordination meeting on food here on Thursday.

Regarding present food supplies, Hatta said the national rice and food stocks were sufficient cuasing inflation in September to remain low at only 0.27% and 2.69% annually. "Our food stocks are sufficient to meet the need of all regions. There is no shortage. Stocks controlled by the National Logistics Agency (Bulog) are also sufficient. As you know, these

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North Maluku to Become Nickel Industry Center www.beritabatavia.com

Hatta confirmed the government had prepared an investment plan to open new agricultural lands and build dams as an irrigation facility involving state enterprises. "We will ensure the availability of the funds and create synergy among state enterprises that are already working now. Efforts to increase food production with the synergy of state enterprises are already underway. The forestry minister has prepared the land and in the future two million hectares more will be made available," he said.

FISH LANDING BASE: The government wants to build a Fish Landing Base (PPI â&#x20AC;&#x201C; Pangkalan Pendaratan Ikan) at Muara Angke and Muara Baru, North Jakarta in 2013. PPI is expected to be the same as those in Japan: a nice fish base that is large, clean and hygienic.

North Maluku (Malut) Governor Thaib Armayin said the province is expected to become a nickel industry center as two nickel plants worth Rp84 trillion would be built in Halmahera island. "The two nickel industries will be built by consortium PT Aneka Tambang and PT Weda Bya Nike," the governor said

Chief Economic Minister Hatta Rajasa

"A road map was discussed just now to achieve the production growth with each region setting an average annual 5% growth." conditions have kept the inflation rate low," he said.

Rp3 trillion to safeguard food resilience.

Hatta said the government had taken anticipatory measures to meet the upcoming dry season by preparing food resilience and food stabilization funds. Until now, Hatta said, the government had already used Rp1.3 trillion of the food stabilization funds totaling

"We have used just Rp1 trillion for rice for the poor program and Rp300 billion for anticipatory measures against harvest failures. So we still have enough funds to overcome problems caused by production disruptions," he said.

in his address on the occasion of North Maluku province`s 12th anniversary here on Wednesday. The governor said that the two nickel industries which were expected to be operational before 2020 would provide a big contribution to the regional original income (PAD) in the form of royalty and other form of receipts. Thaib said that the nickel in-

dustry will also provide jobs for locals and boost the growth of other business sector in the region such as transportation and trade. He said that the province also plans to build a big fish processing industry with an investment of Rp32 trillion. The fish industry is located in Pulau Morotai district and is built through a `mina politan` (urban-

based fish cultivation) program from the Ministry of Maritime and Fisheries Affairs. "If the nickel and fish industries are already in operations, Malut will become one of the economic growth centers in Indonesia whose contribution would be enjoyed not only by the people of Malut but also of other provinces," the governor said.

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Around Jababeka Jababeka Develops Phase 5, 6 and 7 Projects Jababeka is the one and only property company in Indonesia that provides energy facilities (Bekasi Power) and the nation’s first dry port (Cikarang Inland Port), both of which provide the needs of its industrial area as well as outside the estate.

The number of foreign investors in Indonesia is increasing along with Indonesia’s rapid economic growth, improved legal certainty and more stable political situation. Jababeka sees this as a huge opportunity and has since the end of 2010 opened an area covering 1,270 hectares to develop its Phase 5, 6, and 7 projects. Jababeka Phase 5, better known as Jababeka Science Park, covers 270 hectares and is attracting about 25 major tenants, namely Yamaha, Tupperware, Dynaplast, Fuji Seimitsu, Sari Takagi Elok Perkasa, PT Rodamas, PT Alpha Integrated, PT Asahi Indonesia and others. Up to now, 97% of total areas have been sold. Jababeka Phase 5 will have direct access to the new toll road KM 34.7, which is still under construction and is planned for completion on November 2012. Meanwhile, other major tenants are joining Jababeka Phase 6, which covers 800 hectares, and Jababeka Phase 7 (200 ha). Phase 7 will have access to toll road KM 29 and is developed differently as it focuses more on developing a commercial area: office park, shopping center, apartments, ho-

Jababeka

al area adjacent to 1,400 hectares of residential area in Jababeka City, Cikarang and Bekasi.

Jababeka industrial area is the pilot project in developing Eco-industrial Estate in the framework of technical cooperation with the Indonesian government and the Federal Republic of Germany through ProLH GTZ, covering 2,840 hectares of development land in the industrial area adjacent to 1,400 hectares of residential area in Jababeka City, Cikarang and Bekasi. tels, lifestyle center, meeting point, and warehouse park. They will complement Jababeka as a comfortable city for investment and business in east Jakarta. PT Jababeka Tbk was established in 1989 and is listed as the first private company that developed an industrial, housing, commercial, leisure, and education

Jababeka’s philosophy is 'Beyond Property', which helped it develop its industrial area into an independent city that is environmentally friendly and reliable.

area in Indonesia. Currently the Jababeka industrial area is the pilot project in developing Eco-industrial Estate in the framework of technical cooperation with the Indonesian government and the Federal Republic of Germany through ProLH GTZ, covering 2,840 hectares of development land in the industri-

Following its success in the industrial estate of Cikarang, Jababeka is now developing another site at Cilegon, specifically for heavy industrial area, such as steel, petrochemical, and oil and gas refinery. The company has an office building called Menara Batavia at the central business area and is now developing a second building nearby. Jababeka’s philosophy is 'Beyond Property', which helped it develop its industrial area into an independent city that is environmentally friendly and reliable. It has received numerous awards and remains innovative in order to be the best and most reliable. It also provides added value to the community by offering complete facilities. Jababeka is the one and only property company in Indonesia that provides energy facilities (Bekasi Power) and the nation’s first dry port (Cikarang Inland Port), both of which provide the needs of its industrial area as well as outside the estate.

KIJA Conducts Rights Issue PT Kawasan Industri Jababeka recently held a general meeting of shareholders and approved the implementation of additional capital through a right issue involving 6,036,022177 shares at Rp 250 per share. Funds obtained from the Limited Public Offering II after deducting the cost of issuance will be entirely used to pay off promissory notes (PN) issued by the company for the purchase of 100% shares of PT Banten West Java Tourism Development (BWJ) and 21.63% shares of PT Tanjung Lesung Leisure Industry (TLLI). The company also issued promissory notes to BWJ and TLLI shareholders in the amount of Rp 1.5 trillion as payment for the acquisition of the two companies. The acquisition was carried out on the basis of the business synergy of busi-

ness based on experience that owned by both parties in developing an area. KIJA has experience in developing an integrated industrial area at Cikarang, while BWJ and TLLI have experience in developing an integrated tourism area, Tanjung Lesung. The potential synergy is expected to provide long-term business for the companies. “We see tremendous potential of a synergy resulted by the company’s ability to develop an area with assets owned by Tanjung Lesung with sound infrastructure,” said SD Darmono, President Director of KIJA. According to him, Jababeka as a city developer has the reputation and the experience in developing an integrated area as proven by Jababeka City Cikarang, which has complete infrastructure and world class facilities. Jababeka

President Director of KIJA SD Darmono: Jababeka as a city developer has the reputation and the experience in developing an integrated area as proven by Jababeka City Cikarang, which has complete infrastructure and world class facilities.

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Education Encouraging Innovation Among University Students President University

S.D. Darmono, the founder and CEO of PT Jababeka, in September conducted a seminar entitled “INNOVATON” at President University, with A.B.M Witono, the Head of Business and Administration of President University, as the host.

In the seminar, Darmono underscored the importance of innovation in the industrial sector. “Innovation is essential in order to excel against competitors in the globalization era, regardless the type and size of the industry,” he said. He added: “In making innovations, its economic value must be taken into consideration. No matter how innovative a product or a service is, it would be pointless if it has no economic value”. In pursuit of becoming an innovative human being, Darmono encouraged all students to get their hands “dirty” or to have handson experience before graduating from the University. He said that theories learned in classrooms and good academic scores were not enough to support learning experiences, let alone to guarantee success in life. “Students must also learn practical skills which could only be obtained by being an intern in a company,” he said. Moreover, he added, many companies within the Jababeka In-

S.D. Darmono, the founder and CEO of PT Jababeka (Right) and Prof. Dr. Ermaya Suradinata, the Rector of President University. dustrial Estate are open to President University’s students who wish to gain working experience and earn some pocket money. Darmono reminded all students of President University that their rivals in future employments are not limited to local graduates only, but also overseas students from reputable and world-class universities. “Therefore, mastery of English is compulsory,” he said. During the question and answer session, a student asked whether Indonesia as an emerging force should conduct a revolution in its economic sector. Darmono

said that in a sense “making an innovation is making a revolution”. “By innovating in the economic sectors in terms of introducing new products and services, procedures and processes, policies, and technologies, we help to revolutionize Indonesia as a whole,” he explained The inspiring seminar, which lasted for two hours, was attended by Prof. Dr. Ermaya Suradinata, the Rector of President University, along with hundreds of PU’s students.

Dana Siswa Bangsa Sets Aside $5 m to Students from Less Prosperous Families Bright students from financially disadvantaged backgrounds now have bigger opportunities to continue their higher education studies. As one of Putera Sampoerna Foundation’s programs, Siswa Bangsa provides ‘Dana Siswa Bangsa (Siswa Bangsa Fund)’, a comprehensive support system for Indonesia’s brightest students from less-prosperous families to access quality higher education without having to worry about tuitions. ‘Siswa Bangsa Fund’ has set aside $5 million in the form of student loans through a unique public-private-partnership between USAID, UBS AG (UBS), Raiffesein Bank International AG (RBI) and Putera Sampoerna. According to Putera Sampoerna, the loan system or Ganti Bantu is the most appropriate solution for education funding in Indonesia. “We are lending funds to students until they complete their education. After that they can return it in installments within a period of 14-15 years, in percentage of their income. It is aimed to help sustain the education of younger generations,” said Nenny Soemawinata, Managing Director of Putera Sampoerna Foundation. The management of the education loan is in the hands of the Siswa Bangsa and Putera Sampoerna Foundation, both of which have experiences in education and pro-

viding scholarships. The fund will be allocated to 300 students. Siswa Bangsa will select potential students and is the unit that will be lending funds to the students. Scot Marciel, U.S. Ambassador to RI, was present on the MoU signing ceremony and stated that “the student loan program is our commitment to increase education opportunities for young Indonesians.” Putera Sampoerna said, “I personally believe that education is the key to improving our society. Together with our partners, we want to be able to provide access to a quality education for so many gifted children who are otherwise deprived from the opportunity because of their economic background. With this loan, we hope to see more gifted students achieve their dreams and to be future leaders of this nation”. “As such, one of the Foundation’s four pillars is Education with its core mission to develop future leaders for this country by providing deserving students from the economically disadvantaged — who have distinguished themselves academically — a value system that sits on top of a world class secondary and tertiary education,” Sampoerna added. The Putera Sampoerna Foundation is a non-profit organization which has distributed more than 34,600 scholarships, organized training programs for more than 19,000 teachers and principals, adopted 23 schools and 5 madrasah schools (Islamic schools). In 2009, the PSF founded a

boarding school with international standards, the Sampoerna Academy. There is also the Sampoerna School of Education, an advanced school that creates future generations of educators, which became the first element in the establishment of a world-class university.

stituted the "Siswa Bangsa Fund" (Dana Siswa Bangsa), a long-term student financing program for students, aimed at providing access to various groups in order to enjoy quality education without having to worry about funding.

In 2010, the foundation launched the Sampoerna School of Business. Nenny added there were 200 students who passed through a stringent selection process that saw more than 1,000 registrants from all over Indonesia, who sought to obtain a full scholarship with a total value up to $3.15 million from the ExxonMobil Foundation. The selection process was divided into five phases, namely selection of documents, academic test, psychological test, interview, focus group discussion (FGD), and home visit to prospective students.

The Siswa Bangsa Fund uses a system of revolving soft loans that are formulated to help train every student to be responsible and have a strong commitment to what each student wants to accomplish without forgetting their obligation to contribute back to the next generation, which will also require student loan assistance. The focus of Siswa Bangsa activities include raising funds to run the program, distribute educational funds, cooperate with organizations and educational institutions within and outside the country, build a dynamic cooperative, and provide consultation in terms of potential and career development to students receiving educational loans.

The Sampoerna Academy consists of students from regions in Indonesia, including Sumatra, Kalimantan, Nusa Tenggara (NTT) and to West Papua. A number of students also came from the operational areas of ExxonMobil such as Blora, Cepu and Bojonegoro, East Java. The students are taught international-caliber curriculum based on the standards of the University of Cambridge International Examinations. The Putera Sampoerna Foundation founded Siswa Bangsa, an organization that is registered as a cooperative. Siswa Bangsa in-

At present, the program "Siswa Bangsa Fund" has benefited 167 students of the Sampoerna School of Education and the Sampoerna School of Business. In the future, Siswa Bangsa will continue to forge new cooperations with selected institutions of higher education in Indonesia and abroad for the implementation of the ‘Siswa Bangsa Fund’.

Business BUSINESS BRIEFS Medco to Acquire Exxon Block in Aceh PT Medco E&P Indonesia intends to acquire two oil blocks in Aceh namely Block B and North Sumatra Offshore offered by ExxonMobil. Its president director, Lukman Mahfoedz, said here last week his side would discuss the plan with Exxon soon. “We are waiting for an invitation from Exxon to discuss its commercial aspects,” he said. He said his side was serious in seeking to take over the Exxon blocks because they would be integrated with Block A that his company is now operating. “Their locations are close to Block A. So we are serious to take the Exxon offer,” he said. Lukman however said he would only focus on the Exxon offer for the blocks and not Exxon shares in Arun Refinery. ExxonMobil Oil Indonesia spokesman Jeffrey Haribowo meanwhile said a number of investors had also expressed their interest in them but “we could not as yet announce their names.” ExxonMobil officially offered the two blocks last August. The participating interest in the blocks is 100% owned by ExxonMobil. Exxon meanwhile has also offered its 30% stake in Arun Liquified Natural Gas Refinery that receives supplies from the two blocks. Exxon sells the assets so that it could focus on other projects in Indonesia such as Cepu Block in the border between Central and East Java, the Natuna Block in Riau Islands and CBM (coal be methane) projects in Kalimantan and Sumatra. Exxon also views giving the operations of the two blocks to other parties would be more beneficial. The Arun project has carried out production since 1971 or more than 40 years.

BMW Sales in Indonesia Up 18% BMW sales in Indonesia until the middle of September were up 18% compared with the figure for the corresponding period last year, a company spokesperson said. “BMW product sales rose 18%. Last year BMW was able to sell 1,240 units,” PT BMW Group Indonesia communications director Helena Abidin said here last week. Speaking to the press after signing a cooperation agreement with Bank OCBC NISP, she said the BMW sales hike was definitely associated with improvements in the country`s economy. Every month, she said, BMW car sales always increased. In August 150 units were sold, up from 120 in the previous month. “The hike is also inseparable from our participation in a number of automotive exhibitions in Jakarta,” she said. She said BMW cars that have been sold the most are BMW Series 3 reaching 399 units or 41% of total sales, followed by BMW Series 5 reaching 256 or 26% and BMW Model X reaching 231 or 24%. “A total of 47 units of BMW Series 7 meanwhile have been sold so far this year,” she said. In Indonesia the number of BMW car users reaches 20,000.

Citilink to Have Four More Planes Citilink, a strategic business unit of state-owned airlines PT Gaurda Indonesia , will add four A320-200s to its fleet in February next year, a Garuda Indonesia director said. “As part of its rejuvenation program, Citilink will introduce four additional A320-200s in its service to the public in the October 2011 - February 2012 period,” Garuda Financial Director and Citilink Vice President, Elisa Lumbantoruan said recently. The new type of A320-200 aircraft offers more comfortable flight to passengers with wider passenger cabins and has 180 seats, she said. For its introductory flights in September 2011, Citilink is offering a cheap ticket price between Rp359,000 and Rp486,000 with destinations Balikpapan, Banjarmasin and Medan from Jakarta. www.balier.info

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Govt to Cut SOEs To 25 by 2025 The number of SEOs by 2014 would be decreased to 78 and finally to 25 by 2025. In addition, 10 SOEs were now known to be gradually running at a loss; only 131 out of 141 companies were profitable and only 67 were able to give dividends to the state.

The government is to reduce the number of state-owned enterprises (SOEs) from 141 today to 25 by 2025, a minister said here last week. Speaking at a seminar themed “SOEs as Engines of the National Economy”, Hatta said there were now too many SOEs and this caused them to lack focus while the businesses of many of them overlapped. “The ideal number is four to five sectoral holding companies handling infrastructure, investment and transportation,” Hatta said. According to the SOEs roadmap`s

Hatta Rajasa

recommendation from independent consultants, the number of SOEs had been increasing rapidly and becoming inefficient. The Ministry of State`s Owned Enterprises is planning to conduct a right sizing of the SOEs` number through mergers, privatization, sectoral holding and liquidation to form sectoral holdings with strong and focused management teams. As an initial step, the number of SEOs by 2014 would be decreased to 78 and finally to 25 by 2025. In addition, 10 SOEs were now known to be gradually running at a loss; only 131 out of 141 compa-

nies were profitable and only 67 were able to give dividends to the state. “We still have a lot of homework to do because of the 10 SOEs that are continuously losing,” Hatta said. To improve the SOEs` performance, an acceleration program needed to be carried out, whereas the SOEs` overall assets totaled 30% of Indonesian`s gross domestic product (GDP). “I`m sure that our SOE`s assets will reach over Rp300 trillion if they are reevaluated. It is a formidable figure and can be of great benefit if used wisely and managed well,” he said. Indonesia`s capital expenditure has already exceeds the state figure of Rp200 trillion, or greater than government spending in the state budget. In fact, if the state can save two percent, then there will be additional funding valued at Rp20 trillion to build infrastructure. Hatta said that SOEs should have allowed to be free to perform actions such as private companies, and only in that way SOE can be a world-class companies.

PT Telkom Seeks Financial Adviser for Buyback Plan PT Telekomunikasi Indonesia Tbk. (Telkom) will conduct a selection on five companies interested in becoming its financial adviser on its planned buyback of Singapore Telecommunication (SingTel) shares in PT Telkomsel. “The names of the five companies for selection have been received and the next step will be a `beauty contest`, the company`s president director, Rinaldi Firmansyah, said on the sidelines of the signing of a memorandum of understanding with other state-owned enterprises for improving national connectivity here recently. Rinaldi said five companies had been chosen from a field of eight companies and had registered their interest in serving as Telkom`s financial adviser in the buyback. “They are both foreign and local companies. We hope we can appoint the most competent one,” he said. He did not tell the names of the companies but said that the local company that had been confirmed to participate in the selection was PT Bahana Securities while the foreign companies come

from the US and Europe. “Later we will select one local and two foreign companies,” he said. Telkom`s plan to buyback its SingTel shares in PT Telkomsel which is PT Telkom`s subsidiary has been supported by the state enterprises ministry. “We are open. Telkom`s idea to control up to 100% of Telkomsel shares came from the management. Certainly we support it,” State Enterprises Minister Mustafa Abubakar said. Rinaldi declined to tell the source of funds for the planned acquisition. “We do not know yet how much it would be as the value would only be known after the financial adviros have been appointed,” he said. “What needs to be settled right now is appointing the financial advisors who would then calculate the value and give input to the management.” He said so far it it has been decided the acquisition would be financed using company`s internal cash money and proceeds from sales of government treasury stock.

Mandala, Saratoga, Tiger Airways Sign Deals PT Mandala Airlines, Saratoga Group and Tiger Airways have signed a conditional purchase agreement and various other commercial as well as legal documents. The signing of all the documents was done on September 23, PT Mandala Airlines said in a press statement received here last week. Under the agreement, Saratoga Group would act as a financial investor and Tiger Airways as a corporate strategic investor. Saratoga would be the majority shareholder controlling 51% of the company`s shares and Tiger Airways 33%. The rest of the shares was to be held by concurrent creditors and old shareholders. With the signing of the agreement, all parties had moved closer to a settlement of Mandala`s restructuring. Mandala`s press statement did not mention the value of Saratoga`s and Tiger`s stakes. Tiger Airways Holdings Ltd. CEO Chin Yau Seng said “we are glad we have reached an agreement on this transaction and hope Mandala can operate again soon.” Sandiaga Uno, one of the founders of the Saratoga Group, said “we are very glad about the finalization of the transaction doc-

Sandiaga Uno

“We are very glad about the finalization of the transaction documents and hope Mandala can operate again soon.” uments and hope Mandala can operate again soon.” Dono Nurjadin, president director of Mandala Airlines, said he was also relieved that the long process to arrive at the deals had been completed. After the change in Mandala`s ownership, the new airline company would follow a Tiger Airways business model, namely offering low cost fares on routes to international and domestic destinations that can be reached in five hours` time. Mandala had previously stated it would be using Airbus A320 planes.

MAYOR OF LAUENBURG VISIT: SD Darmono, CEO of PT Jababeka, with Andreas Thiede, Mayor of Lauenburg from Germany, during a visit at President Lounge, Menara Batavia. The President Post/Nandi Nanti

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Business PT DI, Spain’s EADSCASA to Produce C-295 Planes The two sides agreed to build six to nine units. Some of the planes would be built by EADS-CASA in the aircraft manufacturing facility of Airbus Military in San Pablo, Sevilla, Spain.

PT Dirgantara Indonesia (DI) and European Aeronautic Defense and Space (EADS)-CASA Spain are to cooperate in producing C-295 light military transport planes, a DI official said. “The C-295 plane is the result of CN-235 development with its fuselage extended by three meters while the wings are the same and the engine is bigger,” PT DI president director Budi Santoso said after meeting with Airbus Military CEO and deputy minister of defense Domingo Urena Raso here last week. The two sides agreed to build six to nine units. Some of the planes would be built by EADS-CASA in the aircraft manufacturing facility of Airbus Military in San Pablo, Sevilla, Spain. The C-295 that flew for the first time in 1998 measuring 50% bigger than its predecessor with PW127G turboprop engine made by Pratt & Whitney. Especially for C-295 production, Budi said, three would be built at PT DI and the rest in Spain. He added the C-239 varieties would have

load capacity of up to 9.3 tons and could be categorized as a medium military lift. The C-295 aircraft is more efficient in maintenance and fuel consumption namely able to fly 5.300 kilometer long with fuel of up to 4.5 tons. Apart from that EADS-CASA has also successfully developed a C-295 variety MPA for maritime patrol and C-295 AEWCS with a early warning system capability and radar in the aircraft that could turn 360 degrees.

PT DI Group to S. Korea for Fighter Aircraft Program PT DI has sent 35 personnel to South Korea to make preparations for an Indonesia-South Korea cooperation program to develop a 4.5th generation fighter aircraft. “We sent 35 personnel to Korea last month. They were sent to carry out an assignment given to PT DI by the government, in this case the defense ministry,” PT DI Director of Technology and Business Development Dita Ardonni Jafri said here last week. The program to develop the fu-

ture fighter aircraft was codenamed KF-X/IF-X (Korea Fighter Experiment)/Indonesia Fighter Experiment). The preparations would take a long time as the certificate would only be issued in 2020, he said. The fighter jet to be made under the program would be of a higher class than the F-16 or Sukhoi-30 because it would be of the 4.5th generation but still lower than the US` F-35 which is a fifth generation aircraft. The aircraft`would have a fighting capability within a radius of 600 nautical miles, an endurance of 4.5 hours and a payload including armaments of up to 6,000 kg. Through the program which consisted of actvities to design, produce , integrate and test the aircraft , the Indonesian government wanted indirectly to develop the domestic aviation industry. From 2013 to 2020, the program will start an engineering manufacture development phase, conduct a preliminary design, detailed design, and prototype production certification. Full production is expected to done in 2021.

ELECTRONIC PAYMENT: Most SMEs now use the services of banks to make domestic payments. At least 70% of SMEs are using banking services for these needs. SMEs that do domestic payments reach 73%, including giro and electronic payment, while check payments reached 76%. The President Post/Nandi Nanti

PT Semen Gresik to Buy Into Coal Mine Cement producer PT Semen Gresik Tbk. (SMGR) is conducting a feasibility study with regard to its plan to acquire a coal mine in the Riau province in Sumatra. Its director of business development, Erizal Bakar, said here last week the acquisition was aimed at assuring energy supply to the company`s plants in Sumatra, Java and Sulawesi. “The coal mine in Riau is

expected to be able to meet the coal need of Semen Padang,” he said after an extraordinary shareholders` meeting. Erizal said the acquisition process was expected to finish in the first semester of 2012. “Until now the study is still ongoing on the mine which is predicted to have a coal reserve of 16 million tons with calorie content of 4,800 to 5,500 cal,” he said. He said the company is also exploring the possibility of con-

ducting operations cooperation in a coal mine in South Kalimantan with a reserve of eight million tons and calorie content of 5,800 to 6.100 cal. “This is a mere production cooperation. The portion is not yet known. Later it will produce one million ton a year to meet the need of Tonasa plant,” he said. Totally Semen Gresik Group needs four million tons of coal a year for PT Semen Padang (one million ton), PT Semen Gresik Tbk.

(two million tons) and PT Semen Tonasa (one million ton). Regarding the company`s performance in the first semester this year he said PT Semen Gresik Tbk. booked an revenue hike of 14.11% to Rp7.60 trillion from Rp6.66 trillion in the previous same period. With the increasing revenue the company booked a net profit of Rp1.89 trillion, up from Rp1.62 trillion in the same period last year. Based on that the profit per share was up from Rp274 to Rp316.

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Investment Pertamina to Invest Rp359 t In Upstream Sector As the operator of subsidized fuel oil distribution, Pertamina is assuring the readiness of infrastructure and oil fuel supply.

tate-owned oil and gas company PT Pertamina is ready to invest Rp359 trillion mostly for upstream sector develop-

ment. “Of the total investment, 85% would go to upstream development,” the company`s Corporate Communication Vice President, Mochamad Harun, said at the Media Workshop on “Sustainable Development Impacts of Energy Prices: The Role of Fossil Fuel Subsidy Reform in Indonesia 2011” here recently.

“The investment project will be realized in line with the company`s role of helping implement the government`s policy through helping smoothen distribution of subsidized fuel oils in Indonesia,” he said. One of them, he said, is assuring the readiness of infrastructure and oil fuel supply as his company is the operator of subsidized fuel oil distribution. “However, distribution of fuel oils across Nusantara (Indonesia) has been hindered by the vast-

Unilever to Invest Rp1.1 t in Sumatra

Gita Wirjawan

Cosmetics producer Unilever plans to build a palm oil processing plant at Semangke, North Sumatra, at a cost of Rp1.1 trillion. The plant would produce fatty acid oil chemicals, Head of the Investment Coordinating Board (BKPM) Gita Wirjawan said after accompanying President Susilo Bambang Yudhoyono at a meeting with the management of Unilever here recently.

The factory was investment in the downstream sector particularly in the palm oil processing plant, he said. “It will take two years to complete the construction of the plant,” he said. He said the company was also committed to raising its investment by $600 million to increase the number of plants in Indonesia.

Gunung Kidul Govt to Build Drini Beach The Gunung Kidul administration of Yogjakarta would build Drini beach in Saptosari sub-district as tourist destination like Tanah Lot in Bali. Head of Gunung Kidul Culture and Tourism Agency Suryoaji said Drini beach has the same shape as Tanah Lot in Bali making it potential for development. “In the

middle of Drini beach there is an area that may attract tourists,” said Suryoaji. He said the district administration would develop Drini beach by increasing tourism facilities for playing beach volley ball and a culinary center. According to Suryoaji, Drini beach cannot compete with Baron

beach, which is favorite tourist destination. “We think that lack of promotion and infrastructure to reach Drini beach has caused tourists to lose interest to go there ,” he said. Suryoaji said like Tanah Lot, the promotion of Drini beach could be a breakthrough in creasing the interest of tourists.

Malaysian Tycoon to Build Star-rated Hotel in Sambas A tycoon from Sarawak, Malaysia, plans to build a three-star hotel in Sambas district, West Kalimantan, following the upgrading of the border town of Aruk to the status of gateway between the two countries. “There will be a memorandum of understanding between the Sambas district government and the influential Malaysian busi-

nessman,” Sarawak Commerce and Industry Board spokesman Datu Saleh Hj Sulaiman said here recently. According to him, the investment in the construction of the hotel was estimated at 12 million Malaysian dollars or around Rp41.2 billion. “The figure does not include the

cost of,” he said, adding that preparations for the construction of the hotel were already being made such as efforts to obtain the necessary licenses from the Sambas district government. “It will probably take 18 months to build the hotel,” Datu Saleh said.

ness of the archipelago, hard terrain, uncertain weather conditions and high lands,” he said. Now, he said, the distribution of fuel oils is supported by 14 transit terminals and installations, 51 terminals and main depots, 85 land and sea depots. With new refineries, he said he was optimistic the capacity of Pertamina`s refineries could rise to 1.711 million barrels in 2017. Right now the capacity of its refineries could still reach one million barrels.

Canada Keen on Investment Partnership with RI Canada and Indonesia are to strengthen their economic development relations by establishing a trade and investment partnership, a visiting Canadian minister said. “One of the strategies to do that is by forging new and deeper trade relationships around the world. Indonesia and Canada will not only trade with each other but also invest in each other`s economy,” Canadian Minister of International Trade Ed Fast said here recently. Fast said that both countries were in negotiations on the conclusion of a Foreign In-

vestment Protection Agreement (FIPA). Canada has high technology on oil and gas processing and was offering it to deepen its partnership with Indonesia in sharing expertise in the oil and gas industry. He said the Canadian government, like the Indonesian government, was focusing on the achievement of economic prosperity. “The Indonesian government is not different from the Canadian. It wants to build a stronger economy so that more and more Indonesians can enjoy the fruits of their labor and enjoy a descent life,” he added. He said Indonesia had favor-

able conditions for Canada to invest, adding that trade between Indonesia and Canada in 2010 reached a total value $2.3 billion. Indonesia`s Gross Domestic Product (GDP) in 2010 was 725.8 billion Canadian dollars while Canada`s GDP was 1.624,6 billion Canadian dollars. Canada GDP growth rate in 2010 was 3.2% and Indonesia`s 6.1%. Canadian exports to Indonesia in 2010 rose by 9.4% to 1.1 million Canadian dollars while Canada`s imports from Indonesia also rose 25.2% to 1. 3 million Canadian dollars.

RI is Singapore’s Third Largest Investment Destination Five other countries which become Singaporean investment destinations were China (S$58.1 billion), Malaysia (S$28.1 billion), Hong Kong (China: S$21.5 billion), Thailand (S$19.5 billion) and India (S$8.7 billion). Singapore’s direct investment in Indonesia reached about S23.3 billion dollars, making Indonesia the islandstate the third largest direct investment destination after China and Malaysia, a spokesperson of Singapore International Enterprise (IE) said.

“Indonesia remains our third largest investment destination, so that Singapore International Enterprise (IE) continues to provide facilities to our enterprises to engage in partnerships with Indonesian companies,” IE public relations officer Janissa NG said here recently.

“We have taken a number of Singaporean businessmen to Indonesia and conducted investment promotions with the Indonesian Chamber of Commerce and Industry (Kadin),” Janissa NG told Indonesian journalists who made a visit to the IE office in Sibgapore.

In addition to Indonesia, five other countries which become Singaporean investment destinations were China (S$58.1 billion), Malaysia (S$28.1 billion), Hong Kong (China: S$21.5 billion), Thailand (S$19.5 billion) and India (S$8.7 billion), he said.

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B4 October 12, 2011

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Executive Highlights The rupiah broke the psychological level of Rp 9,000 to the dollar in the third week of September amid global risk aversion arising from the debt crisis in Europe and a weak U.S. economy. The rupiah, which dropped to a low of Rp9,365 to the dollar at one time, was trading at a high of around Rp8,500-8,600 to the dollar just several weeks ago. Foreign ownership of Indonesian government bonds have fallen to Rp234 trillion as of 19 September (the latest data available), down 5.3% from the start of the month. The yield on the 10-year government bond has jumped 18 basis points (bp) to 7.3%. Overseas investors, meanwhile, have sold a net Rp4.5 trillion in Indonesian stocks as of 21 September from the start of the month. The Indonesian Stock Index (IDX) has also plunged more than 20% since reaching a record high of nearly 4,200 in early August. Traders say the current volatility is a textbook example of global funds leaving Indonesia and other emerging markets for dollar assets in risk-off mode. Bank Indonesia monetary policy director Hendar said the central bank would intervene in the markets regularly to keep the rupiah’s movement in line with regional currencies. He expects the rupiah’s recent decline to be temporary.

Finance Minister Agus Martowardojo said the government could introduce a fiscal stimulus package next year as concerns mount that a slowdown in global growth could impact the Indonesian economy. Taking lessons from the 2008 global financial crisis, the minister emphasized that the country needed to actively anticipate a possible slowdown in global growth. No details have been put forth on the possible fiscal stimulus package. Nonetheless, the finance ministry’s chief of fiscal policy Bambang Brodjonegoro said it would likely combine “fresh money and policies” and emphasize creating sources for domestic growth both in terms of consumption and investment. As a comparison, in 2008 the government launched a Rp73 trillion stimulus package to mitigate the impact of the global economic slowdown. The package involved government spending and fiscal incentives in the form of government-born import duties, value-added and income taxes to revive business activity. At the time Indonesian growth declined from 6.1% y-o-y in 2008 to 4.5% in 2009. The government has yet to revise its official forecast of 6.5% y-o-y growth this year and 6.7% growth in 2012. However, a worst case scenario projection by the trade ministry has growth slowing to 6.2% this year and 5.2% in 2012.

Investors from China’s Jilin Province signed nine deals worth US$9.5 billion in Indonesia during an economic and trade conference earlier this month. The signing was witnessed by chief economic minister Hatta Rajasa and investment board (BKPM) chairman Gita Wirjawan. The deals included a US$6 billion nickel smelter facility in Southeast Sulawesi by Jilin HOROC Nonferrous Metal Group. This project will include a smelter with a capacity of 100,000 tons of nickel-in-matte and a 1,000 MW coalfired power plant to support the smelter. Construction of the facility will be financed by the Bank of China. Other projects signed during the conference included investments in the mining, agricultural, pharmaceuticals and food and beverages sectors. Jilin provincial government representative Sun Zhengcai said the deals reflected efforts by businesses in Northeast China to expand into Southeast Asia’s largest economy.

State power utility PLN has appointed Barclays Capital and Citi to arrange a planned US$2 billion global bond issue. PLN finance director Setio Anggoro Dewo said the firm was looking to raise the funds this year, and plans to meet with a number of global fixed income investors in a road show starting 27 September. He said a final decision on whether to issue the global bonds would depend on demand and conditions in the currently volatile global financial markets. The funds will be allocated to finance a 10,000 MW power plant expansion program that PLN is currently undertaking. Projects in the pipeline include the Indramayu 2,000 MW coal-fired power facility in West Java; the 110 MW Hulu Lais coal-fired plant in Bengkalis, Riau; the 110 MW Sungai Penuh coal-fired facility in Jambi; the Kotamobagu 80 MW coalfired plant in North Sulawesi; and the Tulehu 20 MW coal-fired facility in Ambon, Maluku. PLN has a credit rating of BB from Standard & Poor’s, Ba1 from Moody’s and BB+ from Fitch.

Engineering firm Petrosea has signed an eight-year coal mining contract with Admitra Baratama Nusantara worth US$930 million. The new contract is a revision to an earlier five-year deal signed in 2009, worth around US$200 million, for mining services at Admitra’s mine in Sanga-Sanga, East Kalimantan. Admitra produced three million tons of coal in 2010 from Sanga-Sanga and is looking for Petrosea to help boost production to four million tons this year and five million tons in 2012. Petrosea said the latest deal represented its largest contract to date and would provide a significant boost to its revenue stream from mining services. The company also provides mining services to coal miners Gunung Bayan Pratama and Santan Batubara. Petrosea is a subsidiary of integrated energy firm Indika Energy.

contract worth US$255 billion for the Cepu Oil and Gas Block.

7% stake will be purchased from diversified conglomerate Barito Pacific. The latter will retain a majority 65% shareholding in Chandra Asri following the deal. Siam Cement said the acquisition represented a unique opportunity to invest in Indonesia’s leading petrochemical franchise and further expand its business in a highly attractive growth market. The Thai firm also owns a polyvinyl chloride (PVC) plant in Indonesia with a capacity of 120,000 tons per year. Chandra Asri currently operates Indonesia’s only cracker, producing 520,000 tons of petrochemical products including polyethylene, polypropylene, styrene monomer and various other olefins. Siam Cement is also reportedly in talks to purchase Indonesian chemical producer Sulfindo Adiusaha in a potential US$700 million deal.

The contract was announced by upstream oil and gas regulator BP Migas, and is for one of five supporting infrastructure facilities needed to take the block to full production capacity. Cepu operator Exxon Mobil has already awarded a US$750 million EPC contract to a consortium led by Samsung Engineering and Tripatra Engineering to support infrastructure development at the oil and gas field. Cepu currently produces around 20,000 barrels per day (bpd) of crude oil. The new infrastructure facilities are slated to boost Cepu’s production to 165,000 bpd over the next several years.

Scorpa Pranedya has been awarded an engineering, procurement and construction (EPC)

French oil and gas giant Total has signed a deal with canadian producer Talisman

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As part of the agreement, GMR Energy will be able to purchase up to 10 million tons per year over the next 25 years. GMR Energy chief executive officer Raaj Kumar said the deal would provide the Indian firm access to quality coal from one of the lowest cost producers in Indonesia. He added that the deal would also provide it with fuel security for its plants in India that are under construction. Golden Energy Mines has three coal blocks in Kalimantan and two blocks in Sumatra with coal reserves totaling more than 860 million tons and coal resources estimated at more than 1.9 billion tons. It currently exports coal to China and India with a client base that includes Sumitomo Corp., Glencore International and Ace Trading Group. Golden Energy Mines is affiliated with Indonesian conglomerate the Sinar Mas Group.

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Under the agreement, Total will a acquire a 50% interest in the Sageri production sharing contract (PSC), a 35% interest in the South Sageri PSC and a 20% interest in the Sadang PSC. All three blocks are located in an area of 10,700 km in the Makassar Straits between Sulawesi and Kalimantan, in water depths ranging from 400-2000 m. The deal sees Total committing to extensive seismic plans and a program of exploration wells with an initial spud expected before the end of the year. Jean-Marie Guillermou, Total’s senior VP for Asia Pacific exploration and production, said the latest acquisition reflects its strategy to further expand its acreage in new exploration areas in deep offshore and to continue investing in Indonesia. Total is the largest gas producer in Indonesia, with the bulk of production currently coming from its Mahakam PSC offshore East Kalimantan.

State miner Tambang Batubara Bukit Asam has secured a US$220 million loan facility from Bank Negara Indonesia (BNI). Company spokesman Achmad Sudarto said the funds would be used to construct the Banjasari 2x110 MW coal-fired power facility near Lahat, South Sumatra. The power facility will be used to support Bukit Asam’s coal mine expansion in the area. Achmad said the China National Electric Engineering Co. has been awarded the engineering, procurement and construction (EPC) contract for the power facility. Local engineering firm Citracontrac has been awarded the contract to build the plant’s transmission infrastructure. The Banjarsari facility is scheduled to start commercial operations in 2014. Bukit Asam is looking to boost coal production to 50 million tons per year over the next five years from around 12 million tons per year currently.

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India’s GMR Energy has acquired a 30% stake in local coal miner Golden Energy Mines in a deal worth US$550 million.

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Leading Chinese heavy equipment manufacturer Sany Group said it would invest US$200 million for a new production facility in Indonesia.

The group said it plans to make Indonesia its base for manufacturing mining, construction and heavy equipment for the Southeast Asian and Australian market. The plant will be built in the Karawang industrial estate in a venture with local firm Jakarta International Machinery Center (Jimac). The latter is also the authorized distributor for Sany’s products. The Chinese firm said the Karawang facility would produce a range of items including concrete machinery, excavators, crawler and truck cranes, pile driving machinery, machinery for highway construction and machinery for the ports. Jimac president director Benny Kurniajaya said the venture aimed to sell 300-500 units per year in the domestic market over the next several years.

Astratel Nusantara has acquired a 95% stake in an East Java toll road in a Rp750 billion deal. The 40.5-km toll road links Kertosono and Mojokerto, two cities located near East Java’s major urban center Surabaya. The controlling stake was acquired from local firm Natpac Graha Arthamas. The Kertosono-Mojokerto toll road forms part of the Yogyakarta-Solo-Surabaya corridor of the Trans Java highway. The acquisition adds to Astratel’s current portfolio of toll roads, which includes the 72.5-km toll road linking Merak and Serpong in Banten and the 12.5-km toll road linking Serpong and Kunciran near Tangerang. Astratel is a subsidiary of diversified conglomerate Astra International. Company spokesman Arief Istanto said the acquisition reflects the Astra Group’s strategy to expand into the toll road and infrastructure sectors.

British American Tobacco (BAT) raised Rp740 billion from its 13.4% stake sale in cigarette producer Bentoel Internasional Investama to UBS AG. BAT will retain an 86% stake in Bentoel following the deal. BAT acquired the cigarette maker from the Rajawali Group in 2009. Bentoel is currently Indonesia’s thirdlargest cigarette producer, representing around eight percent of Indonesia’s 300 billion cigarettes per year market. The company reported revenues of Rp4.7 trillion for the first half of the year, up 8% from a year earlier. Bentoel’s profits for the period totaled Rp235 billion, more than double the Rp113 billion posted in 2010.

Business Highlights are contributed to The President Post by CASTLEASIA/ PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program. They are reprinted here with permission. For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@castleasia. com subject CEO Forum

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Property 3.000 New Condominium Units Available by End of 2011 With the growing economy, stable mortgage rate, stronger buying power, and improving trend to live in the high rise residential that are close to the activity center, condominium market will still have space to grow, especially the middle segment market.

ndonesia’s economy remains strong with a growth of 6.6%, surpassing the government target of 6.5%. This strong figure is well supported by strong domestic consumption, investment as well as healthy exports. In the last month of the third quarter, the Rupiah experienced significant depreciation against the USD at the rate of Rp8,940/USD, reflecting a QoQ change of -3.8%. During the 3rd quarter, prices have increased by 0.93% therefore making the YoY inflation figure to 4.79%. Year-to-date FDI realization totaled $9,180 million, while the 9 month’s SBI rate during the quarter averaged at 6.28%. The Euro-zone and US economic crises, the Rupiah’s weakening against US Dollar, and the drop of stock market have not directly impacted the condominium market’ sales activities. During 3rd quarter 2011, sales activities remained active especially in the pre-sales market. Slowing down only occurred near the end of Ramadhan month and Idul Fitri celebration in the middle of the review quarter. Sales activities in the review

quarter were dominated by middle segment condominiums. With their massive number of units in one project, almost 80% from the total net take-up recorded in the review quarter came from this segment.

rate of low-cost condominium also slightly increased by 0.3% to 92.7% and by 4.1% to 83%, respectively. One of the factors for the better demand is stronger buying power from the middle class and stable mortgage rates.

In the existing condominium units, sales rate has slightly dropped by 0.4% from the previous quarter to 94.5%. The number of unsold units increased from 4,170 units in the last quarter to 4,641 units. Meanwhile, the cumulative take-up at the end of third quarter 2011 was 79,873 units, and was still dominated by middle segment.

The total cumulative supply of Jakarta condominium in the third quarter of 2011 stood at 84,514 units, following the completion of Kebagusan City tower C in Kebagusan, Urbana Karawaci tower Berkley, Oxford, and Yale in Karawaci, Green Central Tower Adenium in Gajah Mada, Central Park Tower Amandine in Podomoro City, Tanjung Duren, Centro City tower B in Daan Mogot, and Cosmo Terrace in Thamrin.

In contrast, pre-sales rate experienced an increase by 2.4% to 65.5% with the number of presold units of 25,626 units. Projects developed by reputable developers and contractors continued to record high take-up, even on their early bird marketing, such as Ciputra World’s 2 in Satrio, Setiabudi SkyGarden in Setiabudi, and Botanica in Simprug. All of these projects are planned to be launched soon. Compared to the previous quarter, both sales rate and pre-sales

New projects launched during the 3rd quarter of 2011, were Raffles Residence in Ciputra World development in Satrio, Tower Montblanc in Belmont Residence in Meruya, Kubikahomy, a strata title dormitory concept in Bumi Serpong Damai area, Park View Condominium above Depok Town Square Mall in Depok, Titanium Square in Pasar Rebo, Tower Grand Royal of Kebagusan City in Kebagusan, the 2nd tower of Pakubuwono Terrace in Cipulir, and

H Residence in Cawang. These 8 projects brought the total proposed condominium supply in the greater Jakarta to about 39,123 units. Most of the newly launched projects were middle segment condominium, with only 1 upper class segment which was Raffles Residence. Future projects are still concentrated in South Jakarta, followed by North Jakarta with its massive under-construction projects, Green Bay Pluit and Green Lake Sunter (both by Agung Podomoro group), with total supply of about 7,400 unit and another 3 towers in GreenBay Pluit to be launched soon. No newly launched or newly completed of low-cost condominium projects were recorded during the review quarter. This 3rd quarter 2011 still showed a rising trend on the average price of condominium unit. One of the factors was the growth of land price, especially in the CBD and prime area. The average condominium price in CBD area as of 3rd quarter 2011 was recorded at Rp.18.75 Million per sqm, increased by 3.8% from

that in the previous quarter and by 14.3% from that in the previous year. Meanwhile, the average price in prime area was recorded at Rp.17.93 million per sqm, increased by 3.7% from in the previous quarter and by 13.7% from in the previous year. Due to the expensive land cost, condominium price in CBD and prime are projected to increase. The buyers for this segment are mostly investors or end-users for their second or third home. Reasonable prices of condominium outside CBD area but not-too-far from CBD will be more favorable

especially for investor and middle segment end-user. If all the planned projects are on schedule, there will be 3,000 condominium units to be completed until end of 2011, and the occupancy rate in this market is projected to further decrease. With the growing economy, stable mortgage rate, stronger buying power, and improving trend to live in the high rise residential that are close to the activity center, condominium market will still have space to grow, especially the middle segment market.

About Cushman & Wakefield Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 60 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, residential, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www.cushmanwakefield.com.

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October 12, 2011 B7

Technology Industry Experts: RI Organizations to Benefit from Next Generation Business Intelligence Solutions Organizations are increasingly turning to business intelligence appliances which fuse applications, infrastructure and productivity tools into a single system which help organizations optimize employee productivity and decision-making, while simplifying the delivery of applications for IT.

Indonesia’s businesses stand to benefit greatly from the next generation of business intelligence solutions. This is the message heard by dozens of leading information technology executives at an information session in Jakarta hosted by Microsoft featuring industry analyst firm Forrester Research, Inc. and co-sponsors HP and Intel Corporation.

ployees are empowered to gain strategic value from vital information. They do this by delivering business intelligence solutions through the market’s leading productivity and collaboration platforms, Microsoft Office and Microsoft SharePoint, while providing powerful management tools built for IT professionals on the SQL Server platform.

John Brand, Vice President at Forrester Research, was a featured speaker at the business intelligence event. According to a recent Forrester report, “No other software segment enjoys the same positive market dynamics of advancing technologies, business innovation, and companies’ implementation plans.”

In Microsoft’s goal to deliver pervasive business intelligence to organizations as quickly and efficiently, they have also partnered with HP to create a range of data management appliances from self-service BI to the highest end of Data warehousing that meet transforming organizational needs. Increasingly, organizations are turning to business intelligence appliances which fuse applications, infrastructure and productivity tools into a single system which help organizations optimize employee productivity and decision-making, while simplifying the delivery of applications for IT. “Today, business intelligence appliances are becoming an increasingly important vehicle in our journey to the cloud. Customers get the flexibility they need in a

Microsoft’s approach to business intelligence is to offer a cloud-ready information platform to help customers more effectively take command of their expanding data in order to optimize their operations, find greater efficiencies and capitalize on new opportunities. Today the company’s solutions help their customers drive insights throughout their information work base so that all em-

solution that delivers results right out of the box,” said Dan Kogan, Senior Director SQL Appliances solutions, Microsoft Asia Pacific. “Looking ahead, business intelligence will be more pervasive. Business intelligence shouldn’t be a specialty. It should be a natural part of everyone’s job. In the future, companies that best manage explosive data growth and derive the best insights from it will be the most competitive.” As data volumes continue to grow at exponential rates, the upcoming SQL Server “Denali” will give customers even greater confidence in their mission critical applications and help them unlock breakthrough insights across the organization. The technology itself is designed to quickly build solutions across traditional servers, appliances, and private and public clouds. “The cloud not only makes managing the oceans of data easier and less expensive, it can help companies create new capabilities and products that weren’t before possible,” said Novi Tandjung, Microsoft Indonesia. “We see business intelligence becoming more pervasive. Business intelligence shouldn’t be a specialty. It should be a natural part of everyone’s job.”

Papua Builds Cloud-based Integrated Knowledge Centre Papua is committed to accelerate its development and accomplish a higher goal to coordinate steps with national development with other provinces in the country. A smart step far from conventional approach is taken to improve the performance capabilities of the provincial government through an optimum utilization of IT. The Head of Information Technology and Communication Management (DPTIK) of Papua Province, Kansiana Salle stated, “Papua would like to own an access to broad information that comes with autonomy management and is beneficial for the residents and Provincial Government. Other than becoming an information resource for the people, this facility needs to become a reflective evaluation tool for the Provincial Government regarding its development performance. On the contrary, we need to put into account a wise economic and investment scale considering the vast geographical area the province has, reaching out to a total population of 2,851,999 people and a number of other priorities that must not be set aside.” DPTIK Papua Province and Papua Central Statistic Agency (BPS) as the agents of the Provincial Govern-

ment spearheaded the initiative and present cloud-base portal www.papuadev.info which WAS introduced widely to public on 10 October. The portal will function as ‘Knowledge Centre’ and is expected to become a source of reference for local leaders and decision-makers. The investment to build the platform is an initial step for Papua information and communication system to moving forward towards Cloud Computing - fully supported by Microsoft Indonesia technology. “We are completely aware of the strategic role played by technology in supporting Business Process Re-engineering (BPR) within the Provincial Government administration. Only by utilizing an appropriate IT support will Papua Province be able to do a quantum leap,” claimed Totok Asbi Irianto, Head of Network Technology Development and Data from DPTIK Papua Province. The decision to take the route through Cloud Computing takes into consideration the Province’s current situation and sound investment. “Cloud Computing is essentially a new computing style where data sharing, information and other IT elements are provided through a service run by external party and is paid per-use. The service is scalable and elastic, which translates into a flexible capacity of usage according to user’s demand. The capacity scale can be lifted or reduced anytime,” explained Amalia Fahmi, SMS&P Director Microsoft Indonesia.

“Through this approach, Papua Province does not have the necessity to invest on hardware and maintenance room. These truly bring economic value to the government, since the service is provided by a group of sources in sharing mode. Users also benefit from various available payment solutions, with a complete track record and credible measurement,” she added. Kansiana shared the mutual feeling, “This breakthrough is definitely reducing our IT investment, as capital expenditure for hardware, software, communication network, data server and other tools can be eliminated significantly. We can thus prevent redundancy in the provision of IT equipments in every working unit. The lack of IT experts in Papua can also be managed by building upon external party who is more experienced. The remaining human resources can be allocated to the working units, to focus and contribute in other development sectors.” The main objective to present the public with complete information and valuable knowledge about Papua Province in a timely and accurate manner, through an affordable effort, can be positively achieved by Cloud approach. “The direct benefit is not limited to only budget efficiency by shifting capital expenditures into operational expenditure. The Government is now able to concentrate on achieving their primary goals, to do an effective regional development, to

establish a more simple operational system management, to achieve a more secure collaboration in a more lean organization, and a more secure yet centralized data management, as well as easier applications maintenance since they no longer need to be installed in the connected computer network,” Amalia further elaborated. Totok said the Central Statistics Agency recorded millions of Papua people still have low income, but on the other hand there are untapped potentials including small-medium businesses in Papua who do not have the power to purchase, maintain and secure their own information system. They only have minimum access and capability to process data and information in order to support their independent business development. Cloud Computing has become very appealing to local business community and is the right solution to deal with technology complexity as well as to keep up with rapid technology innovation – even before they hit their Return on Investment (ROI). “We believe, in a near future, Papua business community can step ahead to Cloud as demonstrated by the Provincial Government,” declared Totok.

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B8 October 12, 2011

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Pictorial Events All text and photos by Nandi Nanti

Marine and Fishery Former Minister of Marine and Fishery Fadel Muhammad was the speaker at an event on Financial Club, themed: “Unlocking Our Natural Resources: Marine and Fishery”. The event was attended by professionals, among others Abdul Gani, Alibasjah Suryo and others.

MOU JababekaPT Pertamina MOU Signing: SD Darmono, President Director of PT Jababeka, with Dr. Mardjo Soebiandono, President Director of PT. Pertamina Bina Medika, after the signing of a Memorandum of Understanding (MOU) for the construction of a world-class hospital in Jababeka Medical City.

Ernest&Young Woman Enterpreuner Winners 2011 The four winners are Anastassia Florine Limasnax from PT E-Motion Entertainment, Anne Avantie (Designer), Donda Lucia Yuniar, PT Deva Datta, Susantie Alie from PT. Bersama Olah Boga. Present at the awarding event were Minister of Cooperatives and SMEs Syarifudin Hasan, CEO Ernst & Young, Giuseppe Nicolosi, Mien R. Uno, judges and finalists.

APINDO and Microsoft Cooperation Dedi Wijaya, Head of APINDO West Java, and Sutanto Hartono, CEO of Microsoft Indonesia, are in a joint cooperation to enhance capability, productivity, and efficiency of companies and the use of Microsoft’s legal software.

Mining Indonesia 2011

TIME 2011

Faisal Basri, Chief of Advisory Board of Indonesia Research & Strategic Analysis, Muliawan Margadana from BHP Hilton Indonesia and representative from Director General of ESDM spoke at seminar on Mining Indonesia 2011. The event was participated by investors, businessmen, especially those who work on energy, mining, and oil sectors.

Tourism Indonesia Mart & Expo 2011 (TIME) was held at Bandar Lampung on 12-14 October 2011. It was participated by 77 buyers from 27 countries and 84 sellers from several provinces in Indonesia. Governor of Lampung Sjachroedin ZP stated on the opening ceremony, “TIME will be a momentum to promote tourism development in Lampung and as the main instrument to facilitate local development and enhancing people’s welfare. I believe the event may open international eyes on the greatness of our country which has variety of tourism destination and cultural uniqueness.”

Peace, Love & Harmony Mercantile Athletic Club and Syair.org held a charity dinner themed “Peace, Love & Harmony”. Classic guitar maestro Jubing Kristiano and legendary singer Fariz RM performed at the event. A Rio Ferdinand’s Manchester United jersey and a painting of Rio Ferdinand by Liany Wati were sold at the auction. Total donations generated at the event stood at Rp16.8 million.

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Tourism

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“Stunning natural beauty, the people’s genuine, warm welcome are Indonesia’s tourism appeals” SD Darmono, Chairman of PATA Indonesian Chapter, recently had a conversation with Paul Preston of PATA Compass Magazine. Excerpts: Indonesians are travelling like never before both domestically and internationally-why is this and what has changed? The past 14 years of a democratic Indonesia has coincided with explosion of the internet age which brings with it a new generation of Indonesians who are ‘tech savvy’, and have all the information they need just a click away, and as Indonesia continues to see economic growth while much of the rest of the world is bordering on recession, greater numbers of the population have the disposable income that allows for travel whether it is domestic or international. Also, I believe that the prevalence of social networking in Indonesia has an enormous impact on broadening the minds of the many who may otherwise be contented ‘staying at home’. Which markets are stronger and where do trends appear to be heading? The obvious busy travel times of Idul Fitri, when Indonesians customarily return to their family homes, and Haj, when Muslims make their pilgrimage to Mecca, will continue to be of major importance, but there is a notable increase in many Indonesians desire to visit some of the beautiful locations at home for example, Belitung, Danau Toba, Gunung Bromo, Mentawi Islands, Bunaken or Lombok, which for so long seem to have only been on ‘foreigners’ itinerary. Where overseas travel is concerned, aside from business and student needs (which will surely continue to grow), there is still a strong desire to visit landmark western destinations, like London, Paris, Rome or New York, and this appeal continues amongst young and old alike. Terrorism seems to have not slowed tourism arrivals, in fact they’re now stronger than before the Bali bombings, and Australians still seem to have the market share. What new trends are emerging? There has been a huge impact on many businesses in Bali, and many have struggled to survive, but it is true that arrivals are back on the increase. Bali holds a great

same as those sought anywhere around the world.

deal of mystique for foreign travellers, since ‘the Island of the Gods’ is still synonymous with ideas of tropical paradise. Surfing has increased in popularity worldwide, and a large number of Australian visitors, even if not surfers themselves are regularly exposed to the surf scene, which recognizes Bali as one of the premier destinations in the world. The truth of the matter is that there are many other Indonesian surf locations of equal word class status, but current lack of infrastructure means that they are only visited by dedicated and adventurous travellers. The mere mention of Bali overseas evokes thoughts of a beautiful paradise Island, and hopefully, one day the rest of Indonesia will be thought of in the same way. Bali was once the far away destination for the rich and famous, but is now able to be enjoyed by a much larger cross section of foreign travellers. Bali seems to be getting a rough time lately in the media with criticisms of the lack of infrastructure (roads, airport), rubbish disposal, and others. Is Bali in danger of losing the vital Australian market? There are definite infrastructure issues that remain to be addressed, but I believe the political will is there to continue to make improvements. It should be re-

membered that other world destinations of similar attractiveness like the West Indies, Seychelles or Pacific Islands have at least as many Infrastructure problems and probably less opportunity to overcome them. With regard to the speculation about entrapment, I think this isolated incident has been somewhat over-played, particularly with Indonesia’s clear policy about drug enforcement. I don’t think that it will have any lasting effect on Australians’ desire to come to Bali, and we should always try to steer clear of political posturing. One could just as easily enquire whether the imprisonment of Indonesian crew members (also juveniles, on a ship carrying refugees) would have an effect on Indonesians desire to go to Australia. The government can allow the proper legal process to take place, and ensure a fair and balanced approach to media coverage. There is much to be proud of even more to offer in this rich and culturally diverse archipelago. Outside of Bali what are some of the newer Indonesian destinations that are showing growth for an international market and where are they coming from? There are many beautiful destinations, each with their own appeal which are already on foreign visitor’s itineraries. Often they are sites of outstanding beauty and

Indonesia’s domestic airline industry has taken a beating over the years – how has this improved? Indonesia is still emerging as an international destination, and as with any emerging nation there have been some valid criticisms. They should however be taken in context with other comparable nations. Purely because of the size of the population, and the accelerated growth of the airline industry, problems arose that may well have been arrested in more developed countries, and while there have been some company failures, the industry has recently become stronger and is now maintaining International Flight Safety Standards. It is incumbent upon Indonesian carriers to make it known across the world, that the airline industry here has undergone the necessary improvements and will maintain their international standards.

the number of visitors is on the increase, but our current challenge is to establish better infrastructure support for each of the destinations, to make them more accessible, and maybe more importantly have a strong clear message that will drive the desire for foreign visitors to make the trip.

Outside of Bali, most Australian’s are not aware of other tourism offerings in Indonesia – are there any plans for promotion of the country as a whole? Of course, the current wish of PATA (Indonesian Chapter) is to establish 100 destinations, each with their own distinctive appeal, which can then be promoted in a concerted ‘Tourism Marketing Plan’.

How is Indonesia pursuing this market and where is everyone going? Is this market more a ‘visiting friends & relatives’ market or are Indonesians taking more vacation time? There are vast demographic differences across the Indonesian population with the majority being those with limited facility for travel and therefore only in the ‘visiting friends & relatives’ market. However, while I don’t believe there is more vacation time being taken, I do believe that Indonesians (more than foreigners), will readily accept long journey times for a relatively short stays at their destination. This translates to an enormous potential market for any destination in Indonesia which ‘markets’ itself well. I say this since even amongst Indonesian nationals there is an underlying perception that ‘Bali’ is Indonesia’s holiday destination! I am sure that once this domestic perception is changed then the whole tourism sector will benefit.

Singapore is so close to Indonesia – are Singaporeans travelling to Indonesia and where do they most visit? Singaporeans have been travelling to Indonesia for years and of course many have business interests here, but many will travel here for leisure activities. For instance, there are 58 golf courses to choose from, many designed by international stars like Sir Nick Faldo, and at most, not only are you playing in beautifully manicured tropical playgrounds complete with golf carts, you also are accompanied by beautiful, well trained caddies. All for a fraction of the cost of golfing in Singapore! Bali’s spa business appears to be blooming – how big is this area of business and is it spreading to other parts of Indonesia? The spa business in Bali is definitely helped by visitors’ on-

As for the tourism products which appeal to the Indonesian market, they are probably the

going love of all things ‘Island of the Gods’. Arrivals feel the need to pamper themselves, and the spa businesses naturally benefit. What is less well known is that massage of many different varieties is an everyday part of Indonesian culture, and most definitely not reserved for holidays. Spa businesses, of the resort type, will naturally flourish in every new destination that is opened up to visitors. What flight routes do you believe could benefit Indonesia’s tourism industry? New flight routes will continue to become available as the tourist Industry grows, and yes more are needed, but will be introduced along with the appropriate infrastructure support, that will allow the continued safe operation of expanding domestic airline operators. What are occupancy levels and how do they vary region to region? Occupancy rates are generally 40%-75%, dependent on the location and the brand of the hotel, with averages of approximately 60% in Bali, 55% in Jakarta, 50% in Riau and 45% in other areas. There are of course some hotels with considerably higher averages. Where the figures are consistently high, it can be seen that Investors are taking the opportunity to develop new hotel projects. What would you say is the greatest appeal for international visitors for Indonesia? Apart from the stunning natural beauty of the archipelago, I would have to say – “The genuine, naturally warm welcome and hospitality given by the Indonesian people” What countries do Indonesians travel to internationally the most and what trends do you see appearing? The wealthiest Indonesians, some 10% out of the population of 240 million, will continue to travel to the top worldwide destinations, and some will enjoy several trips annually. By contrast, maybe for a once in a lifetime trip, the majority Moslem population of the working class go to Mecca for Haj and Umroh (pilgrimage). Singapore, regarded as the ‘China Town’ of Indonesia, will likely continue to be one of the most frequently visited.

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Tourism www.presidenri.go.id/Abror

International Marine Tourism Seminar Promotes Babel The two-day seminar on international marine tourism in Bangka-Belitung (Babel) provincial city of Pangkalpinang promoted the abundant tourism potentials in the province. Bangka and Belitung islands province is blessed with pristine, pollution-free white sandy beaches with blue sea waters, fine coral reefs, and giant granite rock formations

The World Batik Summit (WBS) themed “Indonesia: Global Home of Batik” was officially opened by President Susilo Bambang Yudhoyono.

Indonesia Set to Become Global Home of Batik Since the inclusion of batik by UNESCO in “Intangible Cultural Heritage of Humanity” items on September 30, 2009, the government has been actively promoting batik domestically and internationally.

he Indonesian Batik Foundation (YBI) in cooperation with the government recently held at the Jakarta Convention Center (September 28 to October 2, 2011) the Batik Summit which consisted of two main events: the World Batik Exhibition (WBE) and the World Batik Conference (WBC). The World Batik Summit (WBS) themed “Indonesia: Global Home of Batik” was officially opened by President Susilo Bambang Yudhoyono. The biennial World Batik Exhibition had three themes, namely :”Multi-Partnership: Bringing Batik To The World”, “Batik`s Contribution to the Creative Economy”, and “Batik as a Cultural Heritage: Conservation and Modernization”. “641 people from a number of countries took part in the summit. It is double the figure last

year,” a spokesman of the organizer said. The WBE is designed to become a promotion forum for batik producers, practitioners, craftsmen, and businessmen. The organizing committee of the World Batik Summit (WBS) sees a record Rp22 billion worth of transactions during the fiveday event. The conference was highlighted with a cultural night and a fashion show to be participated in by national and international batik designers. Some master pieces of Indonesian designer Iwan Tirta were displayed in the batik exhibition to honor the noted designer who died in July 2010. Since the inclusion of batik by UNESCO in “Intangible Cultural Heritage of Humanity” items on September 30, 2009, the government has been actively promoting batik domestically and internationally. Because batik is now getting popular and on high demand, the government is mulling a master plan for the mass production of batik as a culture-based industry. The master plan being prepared by the industry ministry, would be ready in the next two months, Industry Minister MS Hidayat said. The value of Indonesia`s batik market reaches only Rp3 trillion currently. And therefore, the batik production must be directed toward mass products if the nation

wanted to raise the batik market value, the minister said. No batik industry in Indonesia has so far made mass productions although prominent batik companies such as Danarhadi and Batik Keris have exported their batik products to several countries in Asia. Several regions such as Yogyakarta, West Java, Central Java, and East Java will be prepared to support the planned batik mass productions. According to data of the Indonesian Batik Foundation, the interest of Indonesian people in batik has increased 40% since 2009. “Indonesian batik has a specific character which does not exist in other textiles with batik designs. It has its own philosophy, production process and designs,” Indonesian Batik Foundation Chairperson Jultin Ginandjar Kartasasmita said. Because of its high quality standards, Indonesian batik continues to be in high demand although its prices are higher than similar products from other countries, she said. So far Batik is mostly produced in Pekalongan, Solo (Central Java), Yogyakarta and Cirebon (West Java), but now batik production has developed in at least 23 provinces of Indonesia. Batik, which has been developed for centuries particularly on Java Island, is cloth which traditionally uses a manual wax-resist dyeing technique. But, thanks to

French Public Impressed With Indonesia at Travel Mart Indonesia attracted the French public at the International French Travel Market (IFTM) Top Resa at the exhibition hall Paris Porte de Versailles on September 20-23, Executive Coordinator of Indonesian Team to IFTM, Molly Prabawaty, said. On the occasion, Indonesia is represented by some tourism industries including CV Matahari, Pearl Tour & Travel, PT Tanjung Perak Tours and Travel, Bhara//Essence of Bali and Panorama Destination, Molly told ANTARA here recently. According to her, it is for the second time that the Indonesian Culture and Tourism Ministry took part in IFTM Top Resa in its efforts to attract French tourists as only about 160,000 of them came to the archipelagic country in 2009. The Indonesian Central Agency of Statistics recorded that 98,853 French tourists visited Indonesia in 2006, a number that increased to 104,473 in 2007, 125,216 in

Manager of Interface Tourism France, Jerome Mariot, said most French people preferred Bali. “Two thirds of French tourists visited Bali,” said Jerome who represented the Tourism Ministry in France. Jerome said the French Culture and Tourism Ministry has made various efforts to promote tourist objects in Indonesia including sending French mass media there with a diversity of tourist sites in Bali and other places like Raja Ampat in West Papua where tourists can enjoy diving tours. Molly said TV station in France TF1 is now running a reality show entitled Koh Lanta about Raja Ampat which is well known among international divers. www.world-tourism-news.eu Koh Lanta Director Thiery Graff said Raja 2008, 159,924 in 2009, Molly Ampat is the most beautiful toursaid, adding that France is only ist site in the world. “I found a new paradise in Raja second to the UK in contributing the biggest number of European Ampat and not many people, even Indonesians, know it,” the directourists to Indonesia. Meanwhile, Senior Promotion tor said.

modern advances in the textile industry, the term has been extended to include fabrics which incorporate traditional batik patterns. UNESCO (United Nations Education, Scientific and Cultural Organization) describes Indonesian Batik as: The techniques, symbolism and culture surrounding hand-dyed cotton and silk garments known as Indonesian Batik permeate the lives of Indonesians from beginning to end: infants are carried in batik slings decorated with symbols designed to bring the child luck, and the dead are shrouded in funerary batik.

In an effort to more intensively promote such potentials, both national and international tourism players held the seminar at Novotel Hotel in Pangkalpinang from September 21-22, 2011 as part of Sail Wakatobi-Belitung 2011 event. “The seminar was held as part of Sail Wakatobi-Belitung 2011 in a bid to promote Babel tourism potentials to the participants of the international marine event,” Babel Culture and Tourism Office spokesman Yan Megawandi said in Pangkalpinang over the weekend. He said at least 14 domestic and foreign speakers from among others Malaysia, Fiji, Australia, and Canada spoke on marine-based development in the two-day seminar. The province is made up of two major islands, Bangka and Belitung, and hundreds of other smaller islands with exotic beaches for swimming, diving, and snorkeling. Belitong alone has exotic beaches such as Tanjung

“Besides marine tourism, historical attractions also have a great potential to attract and increase the number of domestic and foreign tourists to visit the island,” Kiras beach, Tanjung Pendam beach, Tanjung tinggi, Tanjung Kelayang, Tanjung Binga fisherman village, Panyaeran beach, Tanjung Kubu, Gembira bay and Tanjung Ru, which are ideal sites for diving, scuba, snorkeling, fishing and sailing. The island also has other tourist attractions such as Golf Babute driving course, Lengkuas island, Gurok Beraye waterfall, Batu Baginde hill, Tirta Marundang natural pool and Dayang Seri Pinai Pool for the participants of Sail Wakatobi-Belitung 2011.

The outdoor activities in Belitung island included cruise ships and yachts rally, underwater world chess record breaking, international beach volley ball tournament, Singapore-Belitung Cruise, seaweed planting activity, turtles conservation activity, and fishing competition. “Besides marine tourism, historical attractions also have a great potential to attract and increase the number of domestic and foreign tourists to visit the island,” Pangkalpinang culture and tourism office spokesman Ahmad Elvian has said in Pangkalpinang. The historical attractions on Bangka island, according to Ahmad, are among others Museum Timah (Tin Museum), Rumah Residen (Resident`s House), Dutch Cemetery, Perigi Pekasem (Pekasem Well), and Tugu Pergerakan Kemerdekaan (monument of independence movement). www.tourismhoteltraveling.com

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Tourism Enormous Potentials Behind Spiritual Wealth at Muntilan Mayor of Lauenburg Andreas Thiede and his delegation from Lauenburg local government recently visited Borobudur and Prambanan temples as part of a series of efforts to explore the possibility of establishing cooperation between Lauenburg and Jababeka city as sister cities

Lauenburg is a town in the state of Schlesweig-Holstein, Germany, situated at the northern bank of the Elbe river. During the visit, Thiede stated, “It is my first experience in visiting the magnificent Borobudur Temple. I really enjoy this trip especially because of the friendly people here. There are so many holy places and historical sites in this area.” They also visited a devotion place of Pran-Soeh (the Java original religion, Kejawen) at Muntilan, where the delegation received explanations about the rituals, and drank holy water from Jalatunda Well. Thiede added, “I have visited several holy places in many countries, but this time I feel a different spiritual experience.” The delegation also watched the Sendratari Ramayana. Muntilan is located in Magelang, 8 km east of Borobudur and has many religious shrines and pilgrimage sites, among others the Pabelan Islamic boarding school, Vin Lith Church and Catholic School, the century-old Hook An Kiong temple, and Goa Maria “Sendang Sono.” These spiritual places are great potentials to be developed and promoted as Spiritual Tourism.

PHOTO CAPTIONS: 1. 2. 3. 4. 5. 6. 7.

Mayor of Lauenburg Andreas Thiede and his delegation in front of Balai Suci. Delivery of Javanese traditional Sword Keris. Borobudur Temple. Pabelan Islamic Boarding School. Goa Maria ‘Sendang Sono.” Vin Lith Church and Catholic School. The century-old Hok An Kiong temple.

C4 October 12, 2011

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Photo Essay

A GRA ROY WEDD

TEXT PHOTOS AND

GKR Bendara, the youngest daughter of Yogyakarta Sultan Hamengkubuwono X, was married to KPH Yudhanegara on October 18 at the palace’s Panepen Mosque. “KPH Yudhanegara, I marry you with my daughter, GKR Bendara,” the Sultan said in the highest form of the Javanese language krama inggil. After the vow, the groom returned to the Kesatrian prince hall, while the Sultan and the guests moved to the main Kencana hall for the next ritual, panggih. Panggih is the peak of the ceremony where the bride and groom meet for the first time as man and wife. The royal wedding was shown on six giant screens set up across the city. On Monday the bride and groom underwent the siraman , or shower, a ceremony in which close relatives and elders shower the couple with flowerscented water to symbolically cleanse their body and soul. Bendara’s mother, Sultana Hemas, led the ritual, accompanied by her eldest daughter, Gusti Kangjeng Ratu Pembayun. The bride and groom were adorned with flowers and bathed in a

“KPH Yud I marry y my daugh Bend

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October 12, 2011 C5

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A AND YAL DING

D BY NANDI NANTI

mixture of sacred water taken from seven wells in the palace compound. Also participating were elder members of the royal family. Family members of Yudanegara, who was born to a commoner family, were present for his siraman. Later in the evening, the bride underwent midodareni procession, where she stayed awake until late. The purpose of the midodareni is to wait for angels to come down to this world to make up the bride so she will look pretty on her wedding day. The grand royal wedding took place in the morning and the reception was held in the Kepatihan hall in the evening. The royal couple left the palaceâ&#x20AC;&#x2122;s northern gate in a procession of royal horse-drawn carriages, escorted by royal guards as well as the cavalry. President Susilo Bambang Yudhoyono and First Lady Ani Yudhoyono attended the royal wedding. Also present at the auspicious event were Vice President Boediono and his wife, Herawati Boediono, former First Lady Shinta Nuriyah Wahid, former Vice Presidents Jusuf Kalla dan Hamzah Haz, prominent figures such as Aburizal Bakrie, Cabinet ministers and foreign ambasaadors. All in all, over 1,015 guests attended the reception.

dhanegara, you with hter, GKR dara.â&#x20AC;?

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C6 October 12, 2011

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Tourism The President Post/Akmal

Kota Tua Jakarta

Queen of the East Kota Tua Jakarta, or Jakarta Old Town, is a small area in the Indonesian capital city that covers about 1.3 square kilometres of both North Jakarta and West Jakarta. Dubbed “The Jewel of Asia” and “Queen of the East” in the 16th century by European sailors, Old Jakarta was once a center of commerce for the whole continent due to its strategic location and abundant resources. In 1526, Fatahillah, sent by Sultanate of Demak, invaded Hindu Pajajaran’s port of Sunda Kelapa, after which he renamed it into Jayakarta. This town was only 15 hectares in size and had a typical Javanese harbour lay-out. In 1619 the VOC destroyed Jayakarta under the command of Jan Pieterszoon Coen. A year later the VOC built a new town named “Batavia” to honor Batavieren, the Dutch ancestors. This city was centered around the east bank of the Ciliwung river, around present day Fatahillah Square. In 1635 the city expanded towards the west banks of Ciliwung, on the ruins of former Jayakarta. The city was designed in European Dutch style complete with a fortress (Kasteel Batavia), city wall, and canals. The city was arranged in several blocks separated by canals. The city of Batavia was com-

pleted in 1650. It became the headquarters of the VOC in the East Indies. The canals were filled up due to outbreaks of tropical diseases within the city walls because of poor sanitation. The city began to expand further south as epidemics in 1835 and 1870 forced more and more people to move out of the cramped city, to the Weltevreden area (now the area surrounding Merdeka Square). The city later became the administrative center of the Dutch East Indies. In 1942 during the Japanese occupation, Batavia was renamed Jakarta, and still serves as the capital city of Indonesia.

Nowadays, many remaining historical buildings and architecture are steadily deteriorating; at best, “dilapidated”, such as Jakarta History Museum (former city hall of Batavia, the office and residence of VOC governor general), Maritime Museum of Indonesia, Sunda Kelapa harbour, and The Batavia Hotel which formerly wellknown as Omni Batavia Hotel.

In 1972, the Governor of Jakarta, Ali Sadikin, issued a decree that officially made the Jakarta Kota area into a heritage site. The governor’s decision was necessary in order to preserve the city’s architectural roots. Despite the Governor’s Decree, the old town remains neglected. Even though the majority was pleased just by the issuing of the decree, not enough was being done to protect and conserve the legacy from the Dutch colonial era.

In 2007, several streets surrounding Fatahillah square such as Pintu Besar street and Pos Kota street, were closed to vehicles as a first step towards the rejuvenation.

However, there is still much hope in restoring the area, especially with various non-profit organizations, private institutions, and even the government recently stepping up to the plate to rejuvenate Old Jakarta’s legacy.

There are now 284 old and historic buildings in the area, among them of Lloyd Insurance, Standard Chartered Bank, PT Samudra Indonesia, PT Bhanda, PT Graha Raksa, Bank Indonesia, Wayang Museum, and Jakarta History Museum.

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Why Men Are in Trouble For the first time in history, women are better educated, more ambitious and arguably more successful than men. By William J. Bennett

Now, society has rightly celebrated the ascension of one sex. We said, “You go girl,” and they went. We celebrate the ascension of women but what will we do about what appears to be the very real decline of the other sex? The data does not bode well for men. In 1970, men earned 60% of all college degrees. In 1980, the figure fell to 50%, by 2006 it was 43%. Women now surpass men in college degrees by almost three to two. Women’s earnings grew 44% in real dollars from 1970 to 2007, compared with 6% growth for men. In 1950, 5% of men at the prime working age were unemployed. As

of last year, 20% were not working, the highest ever recorded. Men still maintain a majority of the highest paid and most powerful occupations, but women are catching them and will soon be passing them if this trend continues. The warning signs for men stretch far beyond their wallets. Men are more distant from a family or their children then they have ever been. The out-of-wedlock birthrate is more than 40% in America. In 1960, only 11% of children in the U.S. lived apart from their fathers. In 2010, that share had risen to 27%. Men are also less religious than ever before. According to Gallup polling, 39% of men reported attending church regularly in 2010, compared to 47% of women. If you don’t believe the numbers, just ask young women about men today. You will find them talk-

ing about prolonged adolescence and men who refuse to grow up. I’ve heard too many young women asking, “Where are the decent single men?” There is a maturity deficit among men out there, and men are falling behind. This decline in founding virtues – work, marriage, and religion – has caught the eye of social commentators from all corners. In her seminal article, “The End of Men,” Hanna Rosin unearthed the unprecedented role reversal that is taking place today. “Man has been the dominant sex since, well, the dawn of mankind. But for the first time in human history, that is changing—and with shocking speed,” writes Rosin. The changes in modern labor – from backs to brains – have catapulted women to the top of the work force, leaving men in their dust. Man’s response has been pa-

Why Do People Smoke? The core reason people smoke is because they are addicted to nicotine and can’t stop—it’s a simple as that. Or is it? Though nicotine addiction is certainly the biological reason for why people smoke, there are a host of other factors that are also at play. The Centers for Disease Control and Prevention (CDC) report that as of 2009, more than 46 million Americans smoke. About 443,000 people in the United States die from smoking-related illnesses each year. Smoking cigarettes causes more deaths than alcohol, car accidents, suicide, AIDS, homicide and illegal drugs combined. Despite this, one in five people still indulge—some have attempted to quit smoking and failed, and others have not considered quitting at all. The risks of smoking are well known—now let’s dig into why people smoke despite them. Nicotine addiction not only perpetuates one’s desire to smoke, but it makes it difficult to try to apply mind over matter and quit. When smokers start to cut down on cigarettes, they begin to go into withdrawal, which causes a variety of unpleasant symptoms including headache, fatigue, irritability and cravings. The fastest way to mitigate them? Smoking another cigarette. Most smokers attempting to quit imagine that they will experi-

ence those initial feelings of withdrawal for the rest of their lives. Actually, within a very short period of time after putting out that last cigarette, physical withdrawal symptoms will start to abate, with urges becoming weaker and shorter in duration. The intervals between urges will soon lengthen. Finally, they will become very infrequent before stopping altogether. Those who quit will eventually get past the discomfort, feel better and have renewed energy. The key, of course, is knowing that— and committing to ride it out. Ask several smokers this question, and they’re likely to have different answers. While generalities cannot be made, there are some factors that many people say are or have been at play in their picking up their first pack and establishing their smoking habit. Many people start smoking in their teens and are addicted by the time they are adults. The most often reported reasons that teens take up smoking include looking mature, a desire to experiment with something “forbidden” and peer pressure. www.cigarettesflavours.com

Many people start smoking in their teens and are addicted by the time they are adults. The most often reported reasons that teens take up smoking include looking mature, a desire to experiment with something “forbidden” and peer pressure

Adults often smoke for other reasons. They may have personal or financial problems and pressures that cause them to seek the temporary escape and numbing of feelings that smoking can provide. Many adult smokers say that cigarettes can almost act like a crutch to lean on during difficult times. Emotions beyond stress can also factor in. Loneliness, for example, is often cited as a reason for lighting up. You are never alone when you have your little “buddy” with you, some say—a comfort that comes as quickly as a flame can be lit. Some smokers even say that the act of having a cigarette in their mouth and taking a drag gives them a sense of pleasure and comfort not unlike sucking your thumb as a child. Others say they “reward” themselves with smoking. Whenever they have accomplished a task, a cigarette can be like a pat on the back for a job well done. The first cigarette of the day can be a way to ease into the daily grind, while the last one before bed can serve as a sense of completion. In between are little rewards for taking care of all the tasks of everyday living. There are those who may even smoke to control their weight. On average, smokers weigh seven pounds less than non-smokers. Smoking reduces appetite and decreases the sense of taste and smell. The social aspect of smoking, of course, cannot be ignored. Many smokers feel part of a “club;” identifying with a group who, say, goes out for smoke breaks at work gives a sense of belonging and bonding. Understanding all of the factors that go into why people choose to smoke can help you better understand someone who lights up despite all we know about how bad smoking is for us. If you are a smoker, you may or may not be acutely aware of these and other factors that may be factoring in to why you can’t kick the habit. If you are trying to quit, consider the above and look for substitutes and changes that you can make to take cigarettes out of the equation. CNN

thetic. Today, 18-to-34-year-old men spend more time playing video games a day than 12-to-17 -year-old boys. While women are graduating college and finding good jobs, too many men are not going to work, not getting married and not raising families. Women are beginning to take the place of men in many ways. This has led some to ask: do we even need men? So what’s wrong? Increasingly, the messages to boys about what it means to be a man are confusing. The machismo of the street gang calls out with a swagger. Video games, television and music offer dubious lessons to boys who have been abandoned by their fathers. Some coaches and drill sergeants bark, “What kind of man are you?” but don’t explain. Movies are filled with stories of men who refuse to grow up and

refuse to take responsibility in relationships. Men, some obsessed with sex, treat women as toys to be discarded when things get complicated. Through all these different and conflicting signals, our boys must decipher what it means to be a man, and for many of them it is harder to figure out. For boys to become men, they need to be guided through advice, habit, instruction, example and correction. It is true in all ages. Someone once characterized the two essential questions Plato posed as: Who teaches the children, and what do we teach them? Each generation of men and women have an obligation to teach the younger males (and females of course) coming behind them. William Wordsworth said, “What we have loved, others will love, and we will teach them how.” When they fail in that obligation, trouble surely follows.

Man’s response has been pathetic. Today, 18-to-34-year-old men spend more time playing video games a day than 12-to17-year-old boys. While women are graduating college and finding good jobs, too many men are not going to work, not getting married and not raising families.

We need to respond to this culture that sends confusing signals to young men, a culture that is agnostic about what it wants men to be, with a clear and achievable notion of manhood. The Founding Fathers believed, and the evidence still shows, that industriousness, marriage and

religion are a very important basis for male empowerment and achievement. We may need to say to a number of our twentysomething men, “Get off the video games five hours a day, get yourself together, get a challenging job and get married.” It’s time for men to man up. CNN

The President Post

C8 October 12, 2011

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Health How to Steer Toward the Path of Least Treatment www.kerigirl.wordpress.com

Patients often worry about the cost of overtreatment but fail to recognize the potential harm of undergoing too many tests and procedures

The first doctor Lynn Munroe consulted about her hyperactive thyroid gland recommended radioactive iodine treatment to destroy the gland, followed by a lifelong regimen of thyroid hormone replacement pills. The second physician she consulted said that he could operate, removing the gland without radiation, but that she would still need to take the pills. A third doctor suggested a more cautious approach, prescribing medication to depress the gland’s activity. It worked: Ms. Munroe, 49, a publicist in West Nyack, N.Y., no longer has symptoms of hyperthyroidism, even though she has been weaned off the medication. “And I still have my thyroid intact,” she said. “Thank God for third opinions.” Has American health care become overly aggressive? Many primary care doctors think so, according to a survey published last week in Archives of Internal Medicine. More than 40% of 627 primary care doctors who responded to the survey thought their own patients were overtreated; only

6% thought the patients received too little care. Why so many tests and referrals? Limited time to spend with patients, fear of being sued and financial incentives to do more were among the reasons cited by the physicians. Patients often worry about the cost of overtreatment but fail to recognize the potential harm of undergoing too many tests and procedures, said Dr. Brenda Sirovich, lead author of the study and a faculty member of the outcomes group at the Veterans Affairs Medical Center in White River Junction, Vt. “I think we don’t talk with patients enough about the fact that there is an optimum amount of medical care, and when you start giving too much, there’s definitely a risk that it’s going to be harmful,” Dr. Sirovich said. In Ms. Munroe’s case, all three of the options presented to her are appropriate treatments for a hyperactive thyroid, and all have pros and cons. But despite its invasiveness, irradiation is more commonly used than medication to suppress production of thyroid

CT Scan: If a CT scan is recommended, ask about an alternative that might result in less radiation exposure.

hormone. Irradiation is considered the definitive treatment; it is also more lucrative. Dr. Rita Redberg, editor of Archives of Internal Medicine, a journal that has been publishing a series of papers on overtreatment, said the trend in medicine has been toward running more diagnostic tests and using more invasive procedures, even when tests may not be called for and equally effective, less invasive treatment

How Exercise Can Strengthen the Brain Earlier studies have shown that exercise sparks neurogenesis, or the creation of entirely new brain cells. But the South Carolina scientists were not looking for new cells. They were looking inside existing ones to see if exercise was whipping those cells into shape, similar to the way that exercise strengthens muscle. Can exercise make the brain more fit? That absorbing question inspired a new study at the University of South Carolina during which scientists assembled mice and assigned half to run for an hour a day on little treadmills, while the rest lounged in their cages without exercising. Earlier studies have shown that exercise sparks neurogenesis, or the creation of entirely new brain cells. But the South Carolina scientists were not looking for new cells. They were looking inside existing ones to see if exercise was whipping those cells into shape, similar to the way that exercise strengthens muscle. Past experiments have shown persuasively that exercise spurs the birth of new mitochondria in muscle cells and improves the vigor of the existing organelles. This upsurge in mitochondria, in turn, has been linked not only to improvements in exercise endurance but to increased longevity in animals and reduced risk for obesity, diabetes and heart disease in people. It is a very potent cellular reaction. Like muscles, many parts of the brain get a robust physiolog-

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A 30-minute jog: The effort required to round your brain cells into shape.

ical workout during exercise. “The brain has to work hard to keep the muscles moving” and all of the bodily systems in sync, says J. Mark Davis, a professor of exercise science at the Arnold School of Public Health at the University of South Carolina and senior author of the new mouse study, which was published last month in The Journal of Applied Physiology. Scans have shown that metabolic activity in many parts of the brain surges during workouts, but it was unknown whether those active brain cells were actually adapting and changing. To see, the South Carolina scientists exercised their mice for eight weeks. The sedentary control animals were housed in the same laboratory as the runners to ensure that, except for the treadmill sessions, the two groups shared the same environment and routine. At the end of the two months, the researchers had both groups complete a run to exhaustion on the treadmill. Not surprisingly, the running mice displayed much greater endurance than the loungers. They lasted on the treadmills for an average of 126

minutes, versus 74 minutes for the unexercised animals. The finding is an important “piece in the puzzle implying that exercise can lead to mitochondrial biogenesis in tissues other than muscle,” says Dr. Mark Tarnopolsky, a professor of medicine at McMaster Children’s Hospital, who was not involved with this experiment but has conducted many exercise studies. “There is evidence” from other studies “that mitochondrial deficits in the brain may play a role in the development of neurodegenerative diseases,” including Alzheimer’s and Parkinson’s diseases, Dr. Davis says. Having a larger reservoir of mitochondria in your brain cells could provide some buffer against those conditions, he says. Of course, this experiment was conducted with animals, and “mouse brains are not human brains,” Dr. Davis says. Best of all, the effort required to round your brain cells into shape is not daunting. A 30-minute jog, Dr. Davis says, is probably a good human equivalent of the workout that the mice completed. NYT

alternatives may be less risky and less costly. “Why is the most aggressive treatment becoming the standard of care?” Dr. Redberg asked in a telephone interview. “We know that when patients are given a choice between surgery and a medical treatment, they almost always opt for the least invasive, least aggressive treatment.” Dr. Redberg and other experts have also been critical of what

they see as the overuse of medication, including the increased use of opioids for chronic pain; the long-term use of proton pump inhibitors, linked to severe magnesium deficiency and other side effects, to manage acid reflux disease; and the widespread prescription of statins for patients without coronary artery disease, despite well-known adverse effects of the drugs. In one study published in the

journal, doctors who reviewed the charts of elderly patients were able to discontinue nearly half of their medications without any detriment to the patients. But the idea that less is more is controversial, especially when it comes to heart disease. Many cardiologists say that cholesterollowering statins, for instance, can save healthy patients with risk factors from developing heart disease in the future.

“A patient should ask, ‘Why do I need this test? What do I get out of it? What’s my chance of something bad happening if I don’t get the test, or if I do get the test?’ ” Dr. Woloshin said.

“If you don’t interrupt the atherosclerotic process, it builds up over decades,” said Dr. Roger S. Blumenthal, director of the Ciccarone Center for the Prevention of Heart Disease at Johns Hopkins. “You don’t want to sit back and wait until people have a fatal heart attack or stroke, because you often don’t get a second chance.”

SCREENING ALTERNATIVES

On the other hand, Dr. Blumenthal agrees that computerized tomography (CT) coronary angiograms of asymptomatic people do not improve care or outcomes. Here are a few things consumers can do to ensure they’re getting appropriate treatment.

THE RIGHT QUESTIONS Patients often want to know whether a test or procedure is covered by insurance, but other questions are more important, said Dr. Steven Woloshin, co-director of the outcomes group at the Vermont V.A. hospital and an author of several studies on overtreatment.

Make sure you know about all of the different treatment options available, and the pros and cons of each. Remember that medication may be as effective as more invasive treatments. Balance the risks of any test or procedure against the potential benefit, given your medical history. Less-invasive, low-tech screenings with a lower risk of complications — a fecal occult blood test, for instance, instead of a colonoscopy — may be appropriate for some patients. If a CT scan is recommended, ask about an alternative that might result in less radiation exposure.

TOO MANY MEDICATIONS If you take medications on a regular basis, have your doctor review your drug regimen periodically. Ask whether you may be able to wean yourself off a drug like a proton pump inhibitor if you make diet or lifestyle changes. Drugs that have been on the market longer often are better understood and have better safety records than newer drugs, whose adverse effects may not come to light until they have been available for some time. NYT