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The President Post T H E
S P I R I T
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June 2013 Vol. 2 No. 6
I N D O N E S I A
www.thepresidentpost.com
INTERVIEW
BUSINESS
– Page A3
Sweden is Indonesia`s important partner and its bilateral trade with Indonesia is the highest among Scandinavian countries. In the past five years, the two countries` trade had continued to grow by up to 6.91 percent. – Page B1
President University is Indonesia in Miniature
Dr. Chandra President University Rector
IDR 20,000
HEALTH
Swedish Businessmen Called on to Invest in RI
Set a Goal But Didn’t Follow Through? Tips to Resetting Habits – Page C2
Cikarang Gets Passenger Trains Linking Seven Industrial Areas to Airport TPP/Heros Barasakti
JAKARTA (TPP) – The rapid growth in Cikarang’s industrial areas requires adequate improvement in its infrastructure. At least seven industrial estates in Cikarang need better transportation access to reduce the heavy load of road and highway. Soon, hundreds of buses and cars that transport employees and people working or living in Cikarang industrial areas will be replaced by passenger trains.
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irector of Public Private Partnership for Bappenas Bastary Pandji Indra said that several local investors are interested to be involved in the train station project, namely Jababeka, Lippo Cikarang Industrial Estate, EJIP, Bekasi Fajar Industrial Estate, MM 2100 Industrial Town and Deltamas City. He explained that the KA Cikarang (Automated People Mover Cikarang) project is targeted to commence in 2017 and to be completed within at the most four years. According to him, the Japan International Cooperation Agent (JICA) will conduct a feasibility study of this railway project. Bastary added that KA Cikarang will use a non-machinist and automated system so trains can run automatically and stop at predetermined stations. KA Cikarang is targeted to be developed up to 32km
and linked to the Jakarta-Bekasi monorail. Separately, Director of Jababeka Infrastruktur Cahyadi said that PT Kereta Api Indonesia (KAI) will conduct a feasibility study on the Cikarang’s train station at Jababeka. Cahyadi explained that there will be feeder buses from the station provided by DAMRI or from the region’s developer. “The station is prepared due to the large market in seven industrial estates in Cikarang,” he said. Meanwhile, Vice President of Marketing Passenger Transport of PT KAI Hendy Helmi said that PT KAI will use diesel trains and will prepare four departure times from Cikarang to Dukuh Atas. Dukuh Atas is planned to be integrated with the transportation hub, interfacing with the LRT (the existing commuter train), MRT, Monorail, Waterways and Busway. Dukuh Atas’ transformation becoming integrated transportation hub is
part of Soekarno-Hatta Airport project which is being undertaken by PT KAI and the Ministry of Transportation. The airport railway project has two routes, namely the commuter line, which passes through Tangerang, and the double track railway construction that covers the existing line, namely Manggarai-Sudirman-Tanah Abang-Duri-Grogol– Bojong Indah-Kalideres–Tanah TinggiSoekarno-Hatta Airport. The second route is for the airport express train, which will be built with elevated models. The route for this express train covers Manggarai-Sudirman-Tanah Abang-Duri-Angke- PluitSoekarno-Hatta Airport. Hendy confirmed that the elevated model will also cover Cikarang. "With this elevated train, the intensity of the trip will be more often because railways will not be crossing the public roads,” he added. However, the Soetta Airport
express train project is expected to cost up to $2 billion, or the equivalent of Rp 18.9 trillion. The railway project will begin to be tendered and constructed in 2014.
Director of Jababeka Infrastruktur Cahyadi (right) and Vice President of Marketing Passenger Transport of PT KAI Hendy Helmi (middle). KA Cikarang (Automated People Mover Cikarang) project is targeted to commence in 2017 and to be completed within at the most four years. KA Cikarang will use a nonmachinist and automated system so trains can run automatically and stop at predetermined stations. KA Cikarang is targeted to be developed up to 32km and linked to the Jakarta-Bekasi monorail.
Former Minister of SOEs Appointed as Jababeka Infrastructure President Commissioner TPP/Rians Rivco
Sugiharto has served as Minister of SOEs in the first period of President Susilo Bambang Yudhoyono in 2004.
PT Jababeka Infrastructure has appointed Dr. Sugiharto as its President Commissioner on Monday (3/6). Sugiharto has served as Minister of SOEs in the first period of President Susilo Bambang Yudhoyono in 2004 and later President Commissioner of Pertamina in May 2010. Sugiharto expressed his enthusiasm in joining a large business great group like Jababeka. He said, "The government should work with Jababeka in running MP3EI." While serving as minister, he made his mark by by keeping his Ministry a distance from political parties. Meanwhile SD Darmono,
Combining leadership, managerial and technical skills, Sugiharto, along with his intuition and experience in investment banking, financial audit, management consultant and long-term services in the real sector, is acknowledged as the “Architect of the Future Corporation”. President Director of PT Jababeka, said that Jababeka Infrastructure is a company with comprehensive experience ranging from power generation, water treatment, waste water treatment, and road construction. "If it is applied to the entire area, the infrastructure in Indonesia will advance faster," he said.
Before becoming a Minister of SOEs, Sugiharto spent nine years at Chemical Bank and Bankers Trust Company, New York. He then moved to Medco Group and successfully made it into one the most successful integrated indigenous energy players in Indonesia. Since 1991, Medco Energi has not only been
Government Urged to Create Oil Exploration Permit Package TPP/Heros Barasakti
The permit acquisition process takes more than a year because it cannot be completed in a single process. The government needs to create an oil exploration permit package to speed up production process, save costs and to increase oil production. Oil companies today must obtain various permits from several agencies before being able to execute exploration. Even after all the permits are obtained, there are still other permits required before exploration can take place, said one of the speakers in the Hulu Migas Seminar held by the Indonesian Industry magazine at President Lounge, Menara Batavia recently.
Deputy Minister of ESDM Susilo Siswoutomo (second right) at the Hulu Migas Seminar held by the Indonesian Industry magazine at President Lounge, Menara Batavia. He added agencies giving permits include local governments, SKK Migas, the Local Environment Agency and others. The permits that must be obtained, among others, are drilling per-
mit, drilling location permit, permit from the Ministry of Forestry, road dispensation permits and others. The permit acquisition process takes more than a year be-
cause it cannot be completed in a single process. Moreover, the location of the agencies are far apart, some in Jakarta and others in several regions. It is also costly, he added. After all permits are obtained can oil companies seek crude oil but they need to seek a Put on Production permit, Plan of Development Field permit, and Plan of Production Permit. If the amount of oil reserves is not large then exploration can be done right after obtaining the Put on Production permit, he added. He called on the government to come up with a package of permits in order to save time and costs. The package will also enable the standardization of permit settlement. Deputy Minister of ESDM Susilo Siswoutomo said the government is preparing a package involving several agencies, in-
cluding Badan Pertanahan Nasional (National Land Agency) and others. Meanwhile, national crude oil production is said to be increasing. Head of SKK Migas Rudy Rubiandini said current crude oil production has reached 830,000-840.000 barrels per day, up from 827,000 barrels per day. This amount meets the State Budget target, which has been reduced from 900,000 barrels per day to 840,000 barrels per day. As for gas production, the government is targeting a production of 1.24 million barrels per day. The target is derived from the previous 1.36 million barrels per day. This makes oil and gas lifting decrease to 2.08 million barrels per day from 2.26 million barrels per day.
successful as a leader in the oil & gas and drilling business, but has also diversified into exploration and production of oil and gas, including downstream industry development. He received a Doctoral Degree from Gadjah Mada University in 2008, a Master in Business Ad-
ministration from the Indonesian School of Management in 1996 and a Financial Management Degree from the University of Indonesia in 1986. Combining leadership, managerial and technical skills, Sugiharto, along with his intuition and experience in investment banking, financial audit, management consultant and longterm services in the real sector, is acknowledged as the “Architect of the Future Corporation”. He is also active in a number of social mass organizations, including various social foundations in Indonesia.
Astronacci Monthly Outlook At last, we can see that the JCI has confirmed its bottom, formed on the last 12 June 2013. We should note that the downward movement within the JCI has been the biggest since the start of the bullish phase on the mid-2012, therefore, we conclude that it is a price and time overbalance that we are currently witnessing. Nevertheless, the JCI will continue its rebound phase with target area around its harmonic resistance level of 4,800-4,850 until the closest time resistance around 19-21 June 2013, as the Sun Conjunts Jupiter on 19 June 2013 and the Full Moon occurs on 23 June 2013. But, you should not be too excited, since on 26 June 2013, we are bound to face the most crucifying Astrolog-
ical cycle, known as Mercury Retrograde phase, as the JCI's price movement will be followed by high rate of volatility and false breakout. This has been inlined with the BI's decision to increase the BI rate back 6%, as Indonesian economic outlook has been haunted by the rising inflation rate. Fortunately, we are saved by the rising level of correlation from both US Indices (especially DJIA) and WTI Crude Oil that has succesfully risen recently. Therefore, we still have some potential stocks that could possibly rise despite of the current market condition, such as MPPA, INDY, ASRI, WIKA, and SMGR.