The President Post Vol. II June 2013

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June 2013 Vol. 2 No. 6

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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.

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June 2013 Vol.2 No. 6

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Opinion

The Blessings of Socialism The Japanese government provides almost 50% financial support for the development of social rojin houses where senior citizens could live or come as outpatients for day care service.

Commercial banks also offer cheap credits of up to 20 years for the development of senior citizens’ homes.

Budhi S Kohar

By Budhi S Kohar

Rojin houses are built based on the population density of an area. The number of senior citizens’ homes in an area will be the same as the number of junior high schools in that area.

This is an integrated system which had also been adjusted with the proximity to a hospital.

R

ojin house is the Japanese word for senior citizens’ homes.

The number of rojin houses continues to increase by the year, either built with government’s subsidies or solely by the private sector which are purely profit-oriented.

The Japanese government provides almost 50% financial support for the development of social rojin houses where senior citizens could live or come as outpatients for day care service. Commercial banks also offer cheap credits of up to 20 years for the development of senior citizens’ homes. These homes are built based on the population density of an area. The number of senior citizens’ homes in an area will be the same as the number of junior high schools in that area. This is an integrated system which had also been adjusted with the proximity to a hospital.

In these homes, the monthly living cost, which already includes meals, range from 50 thousand to 70 thousand yen, while 90% of the maintenance cost is covered by the government through an insurance scheme which are collected from the public aged between 40 and 65 years old, thus allowing senior citizens to only pay 10% of the cost. The homes get their life support from the maintenance

Rojin house is the Japanese word for senior citizens’ homes.

fee which also covers salaries of nurses and other staff.

The levels are divided in seven, in which the lightest level will only get day care service while the highest level are those who are helpless and bed-ridden. To become residents of a rojin house, one must be at least

65 years old and they may stay there until they die.

A different treatment is implemented by commercial rojin houses which are set up purely for commercial purposes and are profit oriented. The room rate could cost three times as high but the facilities offer more conve-

nience and luxuries. The monthly living cost range between 120 thousand and 210 thousand yen. Although the maintenance fee is subsidized, the occupancy rate of this type of rojin house is still not too high.

The problem faced by rojin houses is becoming more com-

plex with the growing scarcity of nurses who are willing to work three shifts, especially when the kango-shi is married. It’s not only a matter of salary, but also family priorities. This is why Japan imported hundreds of nurses from Asia, including from Indonesia, even though the pro-

gram failed due to various reasons.

From my trip, I learned a lot about the social system implemented for population of nonproductive age group. Here the role of the state in paying attention to its citizens is clear. Japan already has a strong social system amid the strong current of capitalism and hedonism. Doctor Nobutani, Head of Sea Side Hospital, said: “We don’t break down the room, medicine costs or doctor’s fee as in the system adopted by the United States.

The law stated that the government pays for senior citizens’ treatment. This is the socialism system that we adopt”. Thes are the blessings of socialism.

The writer is an alumnus of Japan.

Privatization and Liberalization: Engines of Indonesian Growth Based on several studies, the keys to improve the service sectors are privatization and liberalization.

Privatization is defined as the transfer of ownership and control from the government to the private sectors while liberalization refers to a relaxation of previous government restrictions, usually in areas of economic or social policy.

By T. Manivasugen MBA

T

he service industry consists of companies that mainly earn their income by providing intangible products and services to the parties in need. Service industry companies deal with retail, transport, distribution, food services as well as other service dominated businesses.

The growth of service sector in Indonesia has been truly remarkable. It can be proven by the 8 percent growth every year for several years. This number is considerably higher than the GDP growth. As a matter of fact, more than half of the Indonesian

GDP comes from the service sector and it absorbs approximately 40 percent of employment. If the trend grows consistently, sooner or later, the Indonesian economy will be dominated by service industries.

Despite the dramatic growth of the service sector in Indonesia, there are some sectors which lag far behind. To name a few: Public transportation, medical facilities, and education institutions which do not meet international standard and so on. The sectors which reflect international quality standard in Indonesia are mostly banking, and telecommunication. Both sectors have shown a promising growth over the past couple of years.

Based on several studies, the keys to improve the service sectors are privatization and liberalization. Privatization is defined as the transfer of ownership and control from the government to the private sectors while liberalization refers to a relaxation of previous government restrictions, usually in areas of economic or social policy.

Privatization is not a new policy in Indonesia. In fact the practice was applied in the telecommunication industry many years ago. The Telecommunications Act of 1999 showed a new effort by the government to respond to telecom market reforms. It was formulated to have a fair competition in telecommunication industry and to avoid

more monopoly in this industry.

The main objectives were as follows: • To stimulate economic growth • To create competitive market, efficiency and productivity, and • To develop telecommunication industry with high technology improvement.

of the efforts by the government to improve the banking sector in Indonesia are as follows: • Domestic regulations contain liberal market access requirements • The ownership requirement is relatively open for individual or corporate in Indonesia • The foreign ownership participation is up to 99% • The capital requirement is relatively low, approximately $330 million

Since the privatization of telecommunication industry, it has become the leading sector to support Indonesia’s economic growth.

On the other hand, the banking liberalization process first took place in 1966 in Indonesia. Since then, it has brought a positive impact on the growth of banking sector in general. Some

Based on the report from Bank Indonesia in 2012, there were 121 banks with 13453 offices. 14 largest banks held 70 percent of the banking assets.

There were 47 banks owned by foreigners with 45,8 percent of

the share. The banking sector in Indonesia focuses on growing middle class people and favorable interest rate. The banking sector enjoys high profit margin because it concentrates on consumer and retail banking.

In an effort to create more competitive services markets in Indonesia, the government needs to focus on both Privatization and Liberalization. In fact, they have become a global trend and heated debate since 1970s.

Apart from that, investments in physical infrastructure and human capital are imperative to build a strong service sector.

The writer is a Vice Rector 3, President University.

ENGLISH EDITION

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June 2013 Vol.2 No. 6

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Interview

President University is Indonesia in Miniature Few universities in Indonesia use English as the main language in teaching and learning activities. Only some internationally recognized universities use English, one of which is President University (PU), the brainchild of S.D. Darmono, one of the founders of PT Jababeka Tbk., the largest industrial estate developer in Indonesia, at Kota Jababeka, CikarangBekasi.

As a university located in an industrial area, PU is expected to contribute in the development of industry in Indonesia.

Below are excerpts of an interview with PU Rector Dr. Chandra Setiawan, previously published in Indonesian Industry Magazine:

Does President University aim to be an international university?

to hire our graduates due to the high demand.

We also educate students in character building, molding them into people who help others. We teach manners, ethics, discipline, and honesty to be real human beings. They not only have knowledge but are also equipped with a good character.

A leader that doesn’t have character is dangerous because their intelligence might be used for evil purposes or to commit white collar crime.

That's true. PU is being prepared to be an international university. There are now already about 350 foreign students from Vietnam, China, Japan and Korea studying at PU, and soon from the Middle East. We continue to encourage interaction between students from different cultural backgrounds by letting new students to live at the dormitory for the first semester.

We are preparing future leaders, especially for corporations because Indonesia cannot be separated from the international community. In a plural society, we could not survive if we aren’t able to produce people with sound leadership.

How do you improve the competitiveness of graduates?

Can you tell us more about the multicultural ambience at PU?

PU is like a miniature of Indonesia because our students come from 30 provinces and 97 cities.

Students from Aceh should able to live together with students from Java or Sulawesi for at least one semester, while foreign students live in a dormitory for approximately 3.5 years so they will gain more knowledge about Indonesian culture.

We ask students to learn Indonesia’s rich culture, since our life cannot be separated from culture. We regularly hold cultural nights featuring a variety of local and international art and culture performances, for example Saman and Vietnam traditional dances. I consider cultural education as an absolute basic of education, people need to understand the roots of their culture.

Furthermore, I asked lecturers to bring students to visit historical and cultural places like Taman Mini Indonesia Indah (TMII). There, students will observe pluralism, as a church is found near a temple and a mosque near a pagoda. This shows that Indonesia has a high level of culture and is able to live harmoniously in diversity.

Besides the internship program, are there any other schemes?

We are ready to assist companies in doing research, such as surveys or data collection and provide business opportunities.

For example, some time ago we held a Focus Group Discussion (FGD) on business opportunities in Africa in collaboration with the Ministry of Foreign Affairs. The goal is to raise awareness among employers and students that Africa has enormous business opportunities, especially to export Indonesian local products. Africa is a large market of around 600 million people, Indonesian products are known to be affordable to them.

In addition, in terms of historical background, Africans know very well Indonesia’s role in the 1955 Asian-African Conference, the starting point of African independence.

In addition, we are able to assist companies in their CSR programs. They may involve our students in collecting data up to the execution day.

What kind of an education model is being taught at PU?

We develop multiple intelligence, which is the left brain (rational) and the right brain (emotional). We also develop task groups to enable students to work as a team. In real life we will never be successful without cooperating with others. We cultivate management in a team; one cannot be a leader unless one has followers. If prepared well, graduates are ready to compete in the future.

How does PU relate to an industrial area?

PU’s presence in an industrial area is expected to produce mutual symbiosis relationships,

What kind of an entrepreneurship program is being taught to students? the interdependence of industry to education. Thus, we prepare a program that relates to the business or the industrial sector.

We have internship programs for one-two semesters in a year.

Students have to leave campus and work as interns in a company. It’s different with other universities’ programs, which mostly take 1-2 months for internship. In order to be able to interact quickly in a working environment, students are equipped

with leadership skill and communication skills and entrepreneurship.

Moreover, we also open night classes for employees. For example, engineers can learn how to build new plants or expand them, marketing aspects, new technology, operational management, and finances. As a result, employees are equipped to start their own companies. Up to now, approximately 1,000 employees have studied at at PU.

Student must have an understanding of entrepreneurship in whatever major they are taking.

Our students are taught to be independent so they can be a manager in a company or become entrepreneurs. We teach how to make business plans and provide opportunities to part-time jobs. Approximately 93% of our graduates are directly absorbed by prominent companies while the rest continue their studies to obtain a Master’s degree. In fact, some companies have to queue

To be highly competitive, students are equipped with ways of critical thinking. Their concept of thinking needs to be organized so graduates will know the right steps of their actions. With enough skills and good character, it will be easy to adapt in any environment. This is where mastery of foreign languages is useful for them to get along in the international community. The minimum requirement to compete is the ability to use English, or even better if they also master Mandarin. In addition, students must able to think scientifically, to map out problems to solve. Also they have to think in systematic, systemic and holistic ways, as well as have leadership skills.

Thus, competent knowledge through international standard curriculum and supported by proficient lecturers are required.

Our lecturers have to hold at least a Master’s degree from a local university or from Australia, UK, Philippines and India.

A university should able to give competitive compensations to be able to obtain qualified lecturers. Most of the lecturers are experts in their respective fields and work as professionals at accounting firms, prominent corporations, and others. Last but not least, we are supported by a good infrastructure that makes us ready to compete.

Various social problems often occur in an established industrial area. How do you resolve them?

The President University Education Foundation (YPUP) has established a Community College to address the factual needs of local communities in an industrial area. The Community College forms a synergy with President University to make a sort of a laboratory or incubator.

Local communities are educated on how to be entrepreneurs and to improve their skills through short courses. For example, golf caddies are given language courses, namely English, Japanese, Korean and Mandarin so they are able to communicate with golfers.

PU is like a miniature of Indonesia because our students come from 30 provinces and 97 cities. Students from Aceh should able to live together with students from Java or Sulawesi for at least one semester, while foreign students live in a dormitory for approximately 3.5 years so they will gain more knowledge about Indonesian culture.

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June 2013 Vol.2 No. 6

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International

Taiwan Responses to Manila’s “Unintended” Behavior Taiwan has demanded that the Philippine government offer an official apology, punish those responsible, and compensate the victim's family and open bilateral negotiations on fishing rights.

T

he Republic of China (ROC) fishing vessel Guang Da Xing No. 28 (GDX 28) was attacked on May 9 by a Philippine government vessel, resulting in the killing of fisherman Hung Shi-cheng, serious damage to the boat, and engine failure. Contrary to the Philippine characterization, the GDX 28 did not ram its vessel and provoke the incident.

The Philippines used excessive force in carrying out law enforcement procedures, resulting

defence.pk

in serious damage to the GDX 28, with 59 bullet holes found in the ship. Moreover, the Philippine vessel sailed away without offering assistance to the stricken boat, in violation of international law and a humanitarian duty.

Taiwan Minister of Foreign Affairs David L. Yin in an international press conference on May 17 stated that the Philippine official vessel’s excessive and unnecessary use of force against a Taiwanese fishing boat in the overlapping exclusive economic zones (EEZs) of the two countries violated both international law and the UN Convention on the Law of the Sea (UNCLOS 1982).

Taiwan has demanded that the Philippine government offer an official apology, punish those responsible, and compensate the victim's family and open bilateral negotiations on fishing rights.

Despite offering an apology in the name of its President Benigno Aquino III on May 15, Manila nevertheless described the

killing as an "unintended loss of life" and did not address the three other demands to Taiwan's satisfaction.

Lin noted that the Philippines have made an official apology over the incident, but he said Taiwan could not accept Manila's characterization of Hung's death as "unintended."

"We acknowledge the official apology but we feel strongly that the word 'unintended' was totally unacceptable to the ROC government. Since the Philippine government claims that the case is still being investigated, and no conclusion has been made in the ongoing investigation, there is no basis to say that it was an 'unintended' loss of life," he said.

Some Taiwan officials, including President Ma Ying-jeou, called it a "cold-blooded murder" although other officials said that the crew of the Philippine coast guard vessel under investigation may have committed a criminal act when they fired on Hung's fishing boat.

Unhappy with Manila's handling of the situation, Taiwan

RI, Cuba to Enhance Health, Sports, and Culture Cooperation kemlu.go.id Foreign Minister, Marty M. Natalegawa, in his meeting with Cuban Foreign Minister, Bruno Rodriguez Parrilla discussed the need for Indonesia and Cuba to enhance further cooperation in health, sports and culture. The meeting between the two Foreign Ministers was conducted on Friday morning (24/05) at Gedung Pancasila and was one of the events carried out by the Cuban Foreign Minister during his visit to Indonesia, 22-25 May 2013.

Foreign Minister Marty Natalegawa stated that there were still many areas in the health sector that could be the basis for the two countries to share experiences and knowledge.

In this case, the development of vaccines, production of generic drugs and biopharma were the things that would be discussed further for potential cooperation, said Marty. However other areas whose cooperation would be improved were also as important, such as sport and culture, added the Foreign Minister.

Meanwhile, Cuban Foreign Minister Bruno Rodriguez Parrilla said that his visit to Indonesia served as Cuban testament to a strong desire to have a better relationship with Indonesia.

According to the Cuban Foreign Minister, relations between the two countries have been going well, for example in the field of sports with the exchange of athletes training for boxing and badminton, in politics with the mutual support of the two countries in various international issues within the framework of the Non-Aligned Movement (NAM) and the United Nations (UN).

Following the bilateral meeting, the two Foreign Ministers witnessed the signing of two

Foreign Minister, Marty M. Natalegawa (right) and Cuban Foreign Minister, Bruno Rodriguez Parrilla at Gedung Pancasila Jakarta. agreements, namely: 1) Memorandum of Understanding on Sports Cooperation, conducted by the Secretary of the Ministry of Youth Affairs and Sports representing the Indonesian Government and the Ambassador of the Republic of Cuba for Indonesia representing Cuban government; 2) Agreement on Cultural Cooperation signed by the Secretary General of the Ministry of Education and Culture, representing the Government of Indonesia, and the Ambassador of the Republic of Cuba for Indonesia, representing the Cuban government.

Close relationship between Indonesia and Cuba have started since the era of President Sukarno and President Fidel Castro.

Both countries officially opened diplomatic relations on January 22, 1960, followed by the visit of President Soekarno to Cuba in May 1960. Both countries then continued to improve their good relationship, among others, through the NAM, which was formed in 1961.

Bilateral relations between Indonesia and Cuba continued to increase, especially in the socio-cultural field. Indonesia has sent a badminton coach to train in Cuba.

On the other hand, Indonesian amateur boxing athletes have repeatedly followed the training camp in Cuba, as well as brought in Cuban boxing coach to train in Indonesia.

Indonesia is also keen to work with Cuba to improve the performance of softball, wrestling and volley ball athletes.

The trade value between the two countries over the last five years has fluctuated but showed an increase of 8.6% from $12.8 million in 2008 to $13.9 million in 2012.

Indonesia’s exports to Cuba include rubber and plastic products, electronic equipment, shoes and office equipment with a value of $12.64 million. Meanwhile, Indonesia's imports from Cuba such as cigars and vaccines reach a value of $1.26 million.

Indonesian Culinary Cherished at de Bijenkorf. Netherlands Indonesian food hit a highclass Dutch shopping center, de Bijenkorf, at de Bijenkorf Den Haag (21-23 May 2013) and de Bijenkorf Amsterdam (24-26 May 2013). The activity dubbed "Indonesian Culinary Days in de Bijenkorf" is the first collaborative activities between the Indonesian Embassy in Den Haag with de Bijenkorf, the Netherlands.

The event was fully supported by Chef William Wongso and his team. The type of food served was very diverse, ranging from asinan Jakarta, chicken soup,

complete Padangness rijstafel cone (cone consists of rice, vegetables Kapau, rending padang, pangek tuna, chicken Lado Mudo and dry potatoes Balado), and banana compote (kolak) and mud cake (kue lumpur).

In addition, the Dutch public was also introduced to "original flavor" (authentic) Indonesian food, especially foods included in the 30 icons of traditional Indonesian cuisine.

The appearance and sales of Indonesian food was greeted very warmly by the visitors to de

Bijenkorf, consisting of not only the Dutch public but also foreign tourists (especially in de Bijenkorf Amsterdam located in a strategic tourist spot and in front of the royal palace of the Netherlands).

Dutch public interest in Indonesian food during the three-day event was evident from the fact that the 125 servings provided everyday were sold out in less than 3 hours.

Bijenkorf Party appreciates the collaboration activities and is currently considering selling Indonesian food in their restaurant permanently.

has frozen the hiring of Filipinos who want to work in Taiwan, recalled its de facto ambassador to Manila, and expelled the Philippines' envoy to Taiwan.

Taiwan announced the series of sanctions against the Philippines, which also included the suspension of economic and technological exchanges between the two sides.

American foreign affairs expert Dennis Halpin in an article published in The Diplomat, a Tokyo-based current affairs magazine covering the Asia Pacific region, said that the long-term solution remains, of course, the negotiation of a bilateral TaiwanPhilippines fishery agreement, as Taiwan proposed. Resolution and final closure of this avoidable and heartbreaking tragedy requires a two-way street of communication and mutual cooperation.

Guan Da Xing No. 28 is inspected by investigators from the ROC Ministry of Justice May 12 in Taiwan.

RI, Africa Boost Relations through Economic Diplomacy Mozambique Foreign Minister Oldemiro Baloi found that politically Indonesia has a strong presence in Africa especially in the southern region. However, its presence needs to be strengthened further with economic diplomacy.

The statement was made in his visit and official meeting with Foreign Minister Marty Natalegawa on early May.

Minister Marty said that the visit of Mozambique Foreign Minister was used to discuss the strengthening of bilateral relations between the two countries.

Besides, the opportunity was also used to exchange views on regional and international situation.

Trade between the two countries in the last few years has been positive with the total trade

in 2012 reaching $120.3 million, an increase of 125% in trade volume compared to that in 2007.

The two ministers agreed to encourage Business-to-Business contacts and banking cooperation. Indonesia is known to have made investment in oil and gas exploration in Sofala region, Mozambique.

For technical cooperation and capacity building, the two coun-

tries have agreed to boost cooperation in agriculture, industry and textiles implemented in both Indonesia and Mozambique. In addition, Mozambique has also sent a number of police officers to attend School for Staff and Leaders in Police Headquarters.

Looking ahead, Mozambique expects more cooperation, including agro-industry, fisheries, and education through student exchanges and scholarships.

www.thepresidentpost.com

June 2013 Vol.2 No. 6

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Law & Regulation

Can Directors, Commissioners Hold Other Positions in Other Companies? andredaloba.com

One of the attitudes that could lead to unhealthy business competition is when directors and commissioners hold multiple job positions. In Indonesia, business competition is regulated under Law No. 5/1999, which bans monopolistic practices and unhealthy business competition (Anti-monopoly law).

By Paulus Khierawan

T

he global competition in the business sector is getting fiercer. Competition is not always bad and this is evident in the service quality that Pertamina is offering which improved significantly with its slogan “Definitely accurate”. The improved service quality was a form of the company’s response towards the competition offered by rival companies such as Shell, Petronas, and others. The competition not only brought positive results but possibly bring out some negative aspects.

One of the attitudes that could lead to unhealthy business competition is when directors and commissioners hold multiple job positions. In Indonesia, business competition is regulated under Law No. 5/1999, which bans monopolistic practices and unhealthy business competition (Anti-monopoly law).

The multiple job positions held by directors or commissioners can slow down businesses in various ways. The first one is by holding multiple director or

commissioner positions horizontally. This is when a director or commissioner of a company becomes a director or commissioner in a rival company. The horizontal multiple job positions may prompt both companies to make a deal to form a joint strategy such as fixing prices, market allocation, deciding production volume and more.

The second way is by holding multiple director or commissioner position vertically. This is when a director or commissioner becomes a director or commissioner in another company that they could make both companies become integrated vertically. This usually involves their production series. One such example is between a clothing production company and a textile production company.

The regulation about multiple positions is stipulated under Article 26 of the anti-monopoly law which read: “A person who holds the position as a director or commissioner of a company is banned from holding multiple positions as a director or commissioner in another company at the same time if the companies were:

because it could have happened naturally as other businessmen weren’t able to produce similar products. Article 25 of the Anti-monopoly Law considers controlling a market share as a violation when the businessman uses his dominant position to: Decide the trading terms aimed at preventing and or to stop consumers from getting competitive goods or services both in terms of prices and quality; or to limit the market and its technology development; or to prevent other potential businessmen as a competitor to enter the related market.

The multiple job positions held by directors or commissioners can slow down businesses in various ways.

• In the same market; or • The field or business lines are closely related; or • Jointly control the market share of the goods or services that may lead to monopolistic practices and or unhealthy business competition”.

Based on the regulation above, it can be concluded that the anti-monopoly law does not ban all types of multiple job holding.

There are certain conditions that have to be met for the multiple position holding can be banned by the anti-monopoly law. First of all, the companies have to “be in the same market”. What Article 1, Clause 10 of the Anti-mo-

nopoly Law meant by in the same market is a related market with certain market coverage or areas and or offer the same or similar services or substitutes of the goods and or services.

Secondly, the company is “related in the field and or business line,” is what defines a vertical integration.

Thirdly is “jointly control the market share”. Controlling the market share is rather difficult to interpret. Article 1, Clause 13 of the Anti-monopoly Law stated that what it meant by market share is the percentage of the sales value or the purchase of certain goods or services by the

businessman in the related market over a certain calendar year.

Under the anti-monopoly law, control can be defined through a systematic interpretation as a dominant position in which a person is said to be dominating when he had no significant competitor in the related market where he controlled the market share, or when the businessman’s position was superior among his rivals in terms of financial capability, access to supplies or sales, and the flexibility to adjust his supplies or demand over certain goods or services.

Basically, dominating market share is not a violation of the law

Now, what about holding multiple job positions? Wouldn’t that violate the law if it created an unhealthy business competition?

Article 26 of the Anti-monopoly Law considers it a violation if they were in the same market.

Article 48 of the Anti-monopoly Law stated that violation of Article 26 is punishable by fine of at least Rp5,000,000,000 (five billion rupiah) and at the most Rp25,000,000,000 (twenty five billion rupiah), or prison time in lieu of fine of 5 (five) months at the most.

The question now is, what if a director or commissioner holds multiple positions in two companies that compete in the same market but both companies have market share of only 10%, or that they didn’t do anything that may lead to unhealthy business competition? Companies make their important decisions in the general meeting of share-

There are certain conditions that have to be met for the multiple position holding can be banned by the anti-monopoly law. First of all, the companies have to “be in the same market”.

Secondly, the company is “related in the field and or business line”.

Thirdly is “jointly control the market share”. holders. Shareholders play more role in making important decisions for the company. If the directors or commissioners were independent, they play less significant roles compared to the shareholders.

Spokesman of the KPPU, the anti-monopoly body, said that the companies stated in Article 26 of the Anti-monopoly Law are not limited to only Perseroan Terbatas (PT, or limited liability company)), but also foundations, firms, associations, and cooperatives. The definition widens because directors and commissioners are companies’ organs that only exist in PT and in no other business units.

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June 2013 Vol.2 No. 6

www.thepresidentpost.com

Property

Development of Open Green Space and Regional Property Value Aside from facing classical problems related to population and the environment, Jakarta is also constantly facing property supply shortages. This condition has caused the function of absorption areas to change and become residential, apartment, shopping and or hotel areas that eventually reduce green open spaces (RTH) from year to year.

illustration: www.keithkylehomes.com

By Andri Marsetianto

J

akarta is a city of 10 million with a population growth of 135,000140,000 people per year.

The city’s population is expected to reach 12.5 million by 2030. Aside from facing classical problems related to population and the environment, Jakarta is also constantly facing property supply shortages. This condition has caused the function of absorption areas to change and become residential, apartment, shopping and or hotel areas that eventually reduce green open spaces (RTH) from year to year.

One of the impacts of the city’s development, which ignored spatial management, is that the city became inundated by floods, which in 2013 has widened compared to 2007, inflicting up to Rp20 trillion losses as opposed to only Rp8 trillion in 2007. Such a problem has forced Jokowi’s administration and the central government to immediately come up with innovative ideas to build integrated infrastructure and to implement an ideal RTH regulation to prevent the impacts of floods from widening.

Floods in Jakarta happened in 1621, 1654, 1699, 1714, 1854, 1918, 1942, 1979, 1996, 2002, 2007 and 2013. Trisakti University Planology department said that basically Jakarta is dominated by coastal swamp areas and rivers and lagoons. There are 13 river basin systems (DAS) that can potentially swamp 40%

Developers outside Jakarta had created ideal areas with access to Jakarta that provide a proportional RTH. Such integrated development concept will increase your property value in the long term.

(or about 24,000 Ha) of lowlands that are about 1-1.5 meters below the tidal sea level and during high intensity local rains of 50-100mm/day, without the contribution of floods sent from Bogor, as a result of global warming. The human contribution in creating floods is by changing the function of upstream areas in Ciliwung river which caused the disappearence of 36.6% of black vegetation areas and 11.9% of mixed plantation vegetation areas.

Such a condition has caused the width of the Ciliwung river to narrow from 65 meters to only 15-20 meters and caused its depth to shallow from 5 meters to just 1-2 meters as a result of people throwing trash into the river, of which the volume could reach 7,000 tons per day. The condition is made worse by development of houses and villas which occupied 40% of the green areas in Bogor, Puncak and Cianjur. As a result, such condition only left 9.12% of RTH or of only about 60 km, far from the

ideal 180 km. The floods reach Jakarta in about 4-6 hours with the water debit increasing by 200 m3/second or much higher than the normal standard of 28 m3/second.

The Jakarta administration has taken several preventive measures through the 2030 Green Open Space Development Plan that has reached 30% by increasing RTH in river banks and beaches. It also increases RTH in residential, office and industrial areas and other public spaces to create esthetics and as well as to

serve as a shelter to keep the city cool. The MPTD (multi purpose deep tunnel) project is expected to work effectively to contain floods in Jakarta, especially in areas affected by the overflow of Ciliwung which covered five areas. There are 78 flood points in Jakarta.

Although it would only overcome floods in five areas, the people who would feel the most benefit from the project are those that had been affected by the overflow of Ciliwung. In general, the project could reduce floods that cover 3.5 kilometers areas and hold water debit of up to 117 cubic meters/second. The participation of the public and stakeholders are also needed in the river normalization program by creating water catchment areas and landscape modification and others.

Developers outside Jakarta had created ideal areas with access to Jakarta that provide a proportional RTH. Such integrated development concept will increase your property value in the long term. Such condition has been implemented by developers in the southern part of Jakarta such as in Bintaro, Serpong, Tangerang or Bogor and Cikarang which offered integrated development concept, including environmental conservation as their property's added value, by among others creating lakes to catch water and parks to create esthetics.

“KNOW YOU VALUE, KNOW YOUR PROPERTY”

The Jakarta administration has taken several preventive measures through the 2030 Green Open Space Development Plan that has reached 30% by increasing RTH in river banks and beaches. It also increases RTH in residential, office and industrial areas and other public spaces to create esthetics and as well as to serve as a shelter to keep the city cool.

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June 2013 Vol.2 No. 6

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Transportation

“Indonesia Must Have Aerospace Park” skyscrapercity.com

Indonesia needs at least two areas of integrated aviation or Aerospace Park, which is in the eastern and western part of Indonesia. The presence of two aerospace park areas can facilitate the aircraft maintenance in each region.

T

o date Indonesia doesn’t have Aerospace Park, an integrated industrial park for aircraft repair shop. President Director of PT GMF and President IAMSA (Indonesian Aircraft Maintenance Shop Association) Richard Budihadiyanto said Indonesia needs at least two areas of integrated aviation or Aerospace Park, which is in the eastern and western part of Indonesia. The presence of two aerospace park areas can facilitate the aircraft maintenance in each region.

"In the east could be made in Makassar or Manado. While in the west could be in Kuala Namu, Bintan or Batam," he said.

According to Richard, the

In the east could be made in Makassar or Manado. While in the west could be in Kuala Namu, Bintan or Batam."

Richard Budihadiyanto President Director of PT GMF and IAMSA

MRO (Maintenance, Repair and Overhaul) domestic market is expected to reach $ 2 billion by 2016. Moreover, the current domestic market of maintenance absorbed only by 30-40%, the rest still use the services of air-

craft maintenance overseas.

Currently, according to Richard, there are 67 aircraft maintenance facilities in Indonesia, which registered at the Directorate of Airworthiness and Aircraft Operation (DKUPPU). "29 of them became members IAMSA. Most of the operations are in Jakarta, Bandung, Malang and Surabaya, "he explained.

Richard added the presence of Aerospace Park will also help to reduce the number of unemployed for being able to create 3,500 new jobs both directly and indirectly related to aircraft maintenance.

Richard explained the construction of aerospace park area required 75-100 acres at a cost of $ 75-100 million, but in the end will able to minimize the domes-

tic airline aircraft maintenance abroad and resulting foreign exchange savings and spending abroad.

Meanwhile, the Director General of Civil Aviation, Herry Bakti S Gumay said to realize the aerospace park is not easy because it requires large area, but some airports already planned their hangars for aircraft maintenance.

The aerospace park is not only for maintenance but also for aircraft repair shops, parts, warehouse, and a place for pilot/flight crew training and so on. Indonesia currently does not have these kind of integrated facilities, while neighboring countries like Singapore and Malaysia already have similar facility since a few years ago.

Kuala Namu Airport, Medan. The construction of aerospace park area required 75-100 acres at a cost of $ 75-100 million, but in the end will able to minimize the domestic airline aircraft maintenance abroad and resulting foreign exchange savings and spending abroad.

Jabodetabek Monorail Budget Rp 7 Trillion ANTARA

To build the monorail network of Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), which a consortium of stateowned enterprises (BUMNs) has planned to undertake, funding of up to Rp 7 trillion is required.

The project financing will come from the BUMN consortium and loans from state-owned banks.

“It takes Rp 7 trillion to build the monorail network in Jabodetabek. The project undertaking is targeted to be completed

within two years," State-Owned Enterprises Minister, Dahlan Iskan, said on the sidelines of the launch of the mock-up (product full-scale model) of the monorail in Madiun, Central Java, on Monday (6 May).

The signing of the product model and its financing was also attended by Deputy Transportation Minister Bambang Susantono, members of the Boards of Directors of PT Bank Mandiri, INKA, Adhi Karya, Telkom, Jasa

Marga, and a number of other BUMNs. Dahlan is optimistic that construction of the monorail network from Cibubur - East Bekasi all the way to Pancoran will be done on time. After the President signs the Presidential Regulation (Perpres), the consortium will be able to straight away take action on the field.

"There is already a manufacturer of the wagons, i.e. PT INKA, while the company construct-

ing the rail track is Adhi Karya and Bank Mandiri serves as its financier. All have fallen into place, right?" Dahlan said.

A total of seven state-owned enterprises outside the banking sector are also determined to participate in developing transportation advancement, primarily for modes that are socially and environmentally friendly.

Building a monorail at Soekarno-Hatta Airport costs about Rp 2.5 trillion, whereas the con-

struction of the monorail to transport containers at the Port of Tanjung Perak requires an investment of Rp 3.5 trillion.

President Director of PT INKA, Agus Purnomo, said that his company is ready to provide carriages along with all the monorail paraphernalia. With the inauguration of the workshop in Madiun, the process of manufacturing the train carriages will be faster. "It is now a matter of giving us the order and we are

ready to provide them," he said.

On the same occasion, President Director of PT Adhi Karya, Kiswo Darmawan, expressed the company’s readiness to build a monorail network in Jabodetabek. Currently, the company is still conducting a feasibility study.

State-Owned Enterprises Minister, Dahlan Iskan

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June 2013 Vol.2 No. 6

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Education

President University Wins Four Awards in JOINMUN 2013 www.president.ac.id

Out of all 12 awards contested, President University received four, giving it recognition on a national level as one of the leading universities in Indonesia.

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resident Model United Nations (PresUniv MUN) has sent a delegation of promising and enthusiastic students to Jogja International Model United Nations (JOINMUN) 2013 on May 2-5, 2013.

JOINMUN 2013 is an academic simulation and conference utilizing the rules and procedures of the United Nations whereny participants discuss and debate various international issues.

This year is the second installment of JOINMUN hosted by Universitas Gadjah Mada. There were four councils: General Assembly (GA), Economic and Social Council (ECOSOC), Arab League, and United Nations Security Council (UNSC).

What makes JOINMUN different than the other MUNs in Indonesia is that the committee invites international chairs for each council from Australia, Belgium, Malaysia and USA to give the conference more of an international atmosphere. The participants came from various universities in Indonesia, such as Universitas Indonesia, Universitas Parahyangan, Universitas Padjajaran, Universitas Brawijaya, Universitas Gadjah Mada, and Institut Teknologi Bandung.

All of the councils in JOINMUN had representation from the President University delegation. GA was represented by Hitach Anggraeni (IR 2011), Rapi Alawiyah Rais (IR 2011), and

KJRI Guangzhou

The event was opened with a welcome speech from Prof. Changzuo Cai and an inauguration speech by Gantosori, followed by the joint opening of the veil covering the name plate of Cultural Center Indonesia by Gantosori and Prof. Cai.

Wulandari Wardani (IR 2011).

The ECOSOC was represented

by Abel Lakawa (IR 2011), Made Yaya Sawitri (IR 2011), Raihansyah Ramadhan (IS 2011), and Yeni Zulkarnain (IR 2012).

The Arab League was represented by Andi Lulu Purnamasari (IR 2012), Ayu Praditha (IR 2011), and Muhammad Hadhly Dzil Ikram (Law 2011). UNSC was represented by Dikta Pradika (IR 2010), Effendi Tandoko (IR 2012), Ichwan Muttaqin (IR 2012), and Jazmi Adlan Bohari (Law 2011). This 14-person delegation was well-prepared for what was to come at JOINMUN 2013.

The President University received four awards, namely Wu-

landari Wardani (Best Delegate in GA); Abel Lakawa (Best Delegate in ECOSOC); Made Yaya Sawitri (Most Outstanding in ECOSOC); and Muhammad Fadhly Dzil Ikram (Honorable Mention in the Arab League).

Out of all 12 awards contested, President University received four, giving it recognition on a national level as one of the leading universities in Indonesia.

The President University received four awards, namely Wulandari Wardani (Best Delegate in GA); Abel Lakawa (Best Delegate in ECOSOC); Made Yaya Sawitri (Most Outstanding in ECOSOC); and Muhammad Fadhly Dzil Ikram (Honorable Mention in the Arab League).

Indonesian Cultural Center Opened in Guangxi Normal University The 4th Indonesian Cultural Center in China was opened in Guangxi Normal University. It was founded in cooperation with the Indonesian Embassy in Beijing and the PRC Ministry of Education.

The event was attended by the Indonesian Embassy Education Attaché, Director of the International Office Exchange GXNU, Dai Jiayi, Chairman of the Indo-

nesian Studies Program GXNU, Ms. Chang Xiaozu, and Social and Cultural Consulate General in Guangzhou Buchari Chasnil Bahri and GXNU academic community and other invited guests.

Previous similar establishments have been founded in Beijing Foreign Studies University (BFSU), Hebei Normal Universi-

ty (HNU), and Guangzhou University.

The event was opened with a welcome speech from Prof.

Changzuo Cai and an inauguration speech by Gantosori, followed by the joint opening of the veil covering the name plate of Cultural Center Indonesia by Gantosori and Prof. Cai. The cutting of the rice cone (tumpeng) was carried out by Gantosori,

followed by delivery of books by the Indonesian Cultural Center to Prof. Caiby, the Education Attaché.

"The Indonesian Cultural Center has a very important meaning as a bridge of friendship in creating cultural exchanges between China and Indonesia,” remarked Guangzhou Acting Consulate.

The establishment could also

be a forum to promote Indonesian culture in China in general and in Guilin in particular, which in turn is expected to increase understanding and friendship between the two nations.

He added that the establishment was expected to be useful as an information center of culture, education, tourism, and the general state of Indonesia.

The President Post

BUSINESS

SECTION B June 2013 Vol. 2 No. 6 www.thepresidentpost.com

Danu said the fruits to be developed include “durian”, mangosteen, banana and papaya.

On the occasion the commercial and business banking managing director of state-owned Bank Mandiri, Sunarsono, said the bank has allocated around 80 credits for the food sector.

BUSINESS BRIEFS PTPN VIII to Transform Tea Plantations State-owned plantation company PT Perkebunan Nusantara (PTPN) VIII plans to convert its tea plantations into fruits plantations.

The company`s director, Danu Rianto, said here on Sunday the transformation would make the company a producer of fruits as well as the biggest fruits exporter by 2018.

The company`s tea plantations reach 25,512 hectares, he said on the occasion of a Nusantara Fruits and Flowers Festival 2013 held in cooperation with the Bogor Institute of Agriculture, the ministry of agriculture and the ministry of state enterprises and also attended by agriculture minister Suswono. He said the business transformation was done in view of the increasing imported fruit market.

The domestic fruit market has also increased by around 11 percent higher than the sugar market which is only seven to eight percent, he said.

He said the location of the company`s tea plantations is in the southern parts of Indonesia so that geographically it would not become the competitor of exporting countries like Thailand.

“Even it could fill the gap left by Thailand,” he said, adding that Thailand is not in the harvest season when the season comes in Indonesia.

members reached an aggregate of Rp64.02 trillion in 2012, up 15.96 percent from Rp55.21 trillion in 2011.

He said there are around 43 million holders of life insurance policy in the country.

Three Cellular Operators Launch Joint Electronic Money Service

Life Insurance Companies Report 14.5 Percent Increase in Premiums Life insurance companies in Indonesia recorded an aggregate of Rp107.73 trillion in premiums last year or an increase of 14.38 percent from the previous year.

Bancassurance, an insurance product sold in cooperation with banks, was the largest contributor, accounting for 40.4 percent with insurance agents accounting for 38.3 percent of the total premium income, the Association of Indonesian Life Insurance Firms (AAJI) Chairman Hendrisman Rahim told reporters here on Friday.

Direct marketing/telemarketing also had significant contribution accounting for 8.5 percent of the premium income with other marketing systems accounting for 12.8 percent, he said. New premiums totaled Rp75.01 trillion in 2012, up from Rp67.40 trillion in the previous year, with the rest in premiums from old policyholders, he said.

He said unit link, which is an investment based product, accounted for 62 percent of premiums from old policy holders. Claims paid by AAJI

Three local cellular operators in Indonesia, namely Telkomsel, Indosat and XL Axiata, here on Wednesday launched a joint electronic money service to support financial transaction system in in the country.

“The new service is expected to boost people`s interest in using electronic payment which also in line with the government`s program of having less cash society in the future,” CEO of Telkomsel Alex J Sinaga said during the launching event today.

He noted the vast development of technology nowadays enables people to live their live easily including when they want to conduct financial transaction. Earlier each of the the three operators had its own electronic payment service. The joint project launched on Wednesday will enable customers to send electronic money across operators.

Meanwhile, the then Governor of Bank Indonesia Darmin Nasution said the new service is not only beneficial to the banking system in Indonesia but also to national financial system. “We hope more cellular operators will follow this initiative,” he added.

Swedish Businessmen Called on to Invest in RI presidenri.go.id/Abror

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.

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resident Susilo Bambang Yudhoyono has invited Swedish businessmen to invest in Indonesia, saying the Indonesian government is open to discuss any problematic regulations with foreign investors.

“I invite Swedish businessmen to cooperate with their Indonesian counterparts in investment. I have told Prime Minister Fredrick Reinfeldt that in case of regulatory problems we can discuss them together,” he said in a joint press conference with Swedish Prime Minister Fredrick Reinfeldt at the latter`s office here last month.

The two heads of government called the press conference after they had led the delegations of the two countries to discuss investment and trade cooperation.

President Yudhoyono said during Prime Minister Reinfeldt`s visit to Jakarta in November 2012 the two countries agreed

to increase cooperation mainly in the fields of investment, trade, education, environment, climate change and tourism.

He further said that Indonesia wished to learn more from the Swedish government`s experience in maintaining its environment. “Sweden is known for its internationally-recognized environment management concept. Indonesia hopes it could learn from Sweden`s experience,” Yudhoyono said, referring to Sweden`s success in reducing the use of fossil fuel by up to 50 percent and replacing it with renewable energy sources.

On the occasion, the two leaders also witnessed the signing of memorandum of understanding for cooperation in the fields of sustainable city development using green city and city symbiosis concepts by Indonesian Foreign Minister Marty Natalegawa and Swedish Trade Minister Ewa Bjorling.

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. Total bilateral trade between the two countries in 2012 reached $1.46 billion, a 28 percent surge compared with the year before when it was $1.05 billion. Swedish investment in Indonesia in 2012 reached $5.2 million in 11 projects, a four-fold increase from $916,000 in nine projects the year before.

President Yudhoyono is the second Indonesian president to visit Sweden after the late president Soekarno on May 3-5, 1959.

He visited Sweden at the invitation of Swedish King Carl XVI Gustaf. He was accompanied by First Lady Any Yudhoyono, Foreign Minister Marty Natalegawa, Minister/State Secretary Sudi Silalahi and Industry Minister MS Hidayat.

President Susilo Bambang Yudhoyono (left) and Prime Minister Fredrick Reinfeldt called the press conference after they had led the delegations of the two countries to discuss investment and trade cooperation.

Chevron to Operate Siak Block Again The Upstream Oil and Gas Regulatory Special Task Force (SKK-Migas) said PT Chevron Pacific Indonesia (CPI) was likely to operate again Riau Province`s Siak Block whose contract would expire next November.

“But Chevron will unlikely operate the whole oil block. The oil block will be split into three parts, Block I, II and III. Chevron will operate Block II,” Elen Biantoro of the SKK-Migas said here on Tuesday.

Elen said that the other two parts of the oil field, namely Block I and III, would be offered to regional government-owned company BUMD and state-owned oil and gas firm PT Pertamina.

However, Elen said, it would all depend on the decision of the Ministry of Energy and Mineral Resources (ESDM).

The SKK-Migas Information Division head said that the Siak Block was divided into three parts by the SKK-Migas because Chevron so far still focused its attention on managing one point so that its oil production had yet to be maximal.

Elen said that the recommendation that the SKK-Migas would issue was not a direct appointment but an offer. “Regarding the BUMD that will get the chance, it will depend on the regional government of Riau Province. We are not yet well-informed of the BUMD. Yet, the

pedomannews.com

SKK-Migas Head Rudi Ribiandini said that the government should decide soon the fate of Siak oil block because the exploitation contract of the oil field with PT Chevron Pacific Indonesia would expire in November 2013. decision will be made by the ESDM,” Elen said.

She said that the extension of Chevron contract to operate again part of the Siak Block was an effort to optimize national oil production. So far, she said, the Siak Block had an average production of 3,000 barrels.

“What we are trying to avoid the stoppage of the oil production operation when the contract expires in November. This should become a matter of con-

sideration, though it would all be returned to the ESDM to decide,” she said.

Up to now, the government has not made any decision with regard to operations of two oil blocks whose contracts will expire on November 27, 2013. The two oil blocks are the Siak Block and the South and Central Sumatra Block. The two oil blocks had been operated by Chevron and PT Medco E and P Indonesia.

In the meantime, SKK-Migas Head Rudi Ribiandini said last week he hoped the government will soon decide the best winner to operate Riau`s Siak oil block. “Chances are open for all who have the rights to compete, including regional government-owned firm (BUMD), state-owned oil and gas firm Pertamina and old contract holder Chevron,” Rudi said.

He said that the government should decide soon the fate of Siak oil block because the exploitation contract of the oil field with PT Chevron Pacific Indonesia would expire in November 2013.

Rudi said that his office had worked hard to approach the government so that it would take speedy decision for the continuation of Siak oil block’s operation.

“We have seen signs for that purpose, but there is no yet decision on who will continue the Siak Block contract,” Rudi said.

Riau`s provincial government has recommended that the Energy and Mineral Resources Ministry appoint PT Riau Petroleum in its capacity as a BUMD in Riau to operate the oil field.

Chevron said it was still interested in continuing its contract on the exploitation of Siak oil block. However, the company is so far still waiting for recommendation from SKK-Migas.

Sumitomo Mitsui Acquires 16.87 Percent of BTPN Sumitomo Mitsui Banking Corporation (SMBC) has acquired 16.87 percent of medium sized publicly traded lender PT Bank Tabungan Pensiunan Nasional Tbk (BTPN).

“SMBC acquired the stake from TPG Nusantara S.a.r.l (TPGN) on Wednesday,” BTPN director Anika Faisal said at the Indonesia Stock Exchange on Thursday.

The share sale reduced

the stake of TPG Nusantara in BTPN to 41 percent, but it remains the majority shareholder, Anika said. It was reported that Sumitomo Mitsui Banking Corporation hopes to increase its stake in the bank to 40 percent in the future. SMCB said it plans to acquire a 24.26 percent stake in BTPN from the market in addition to the 16.87 percent stake it had acquired from TPGN. Sumitomo Mitsui Banking plans to buy 1.41 billion more shares of BTPN or 24.26 percent

at a price of Rp6,500 per share.

Takeshi Kumibe, the president of Sumitomo Mitsui Banking Corporation, said the company has diversified business in Asia including in Indonesia.

SMCB is interested in expanding business in Indonesia because of the strong economic growth recorded by the country amid the global crisis. Takeshi Mitsui attributed Indonesia`s economic growth to the country`s big population and growing middle class.

Krakatau Steel to Operate Iron Ore Processing Plant PT Krakatau Steel Tbk, through its subsidiary, PT Meratus Jaya Iron Steel (MJIS), will operate an iron ore processing plant in South Kalimantan to increase local raw materials contribution.

“The operation of PT MJIS is part of pt KS`s (Krakatau Steel) efforts to increase efficiency especially to reduce its dependency on imported raw materials,” PT Krakatau Steel`s corporate secretary Andi Firdaus said here on Wednesday.

The operation of PT MJIS is expected to save production cost significantly in PT KS, he added. PT MJIS pro-

The operation of PT MJIS is expected to save production cost significantly in PT KS. duces iron sponge which is to be processed into steel raw materials at PT Krakatau Steel`s plant in Cilegon, West Java.

PT KS holds 66 percent of shares in PT MJIS while the rest is held by PT Antam.

According to plans the plant is scheduled to operate normally at the end of 2013 with the rate of production reaching 315,000 tons a year. “Iron sponge from PT MJIS will also be very useful

for PT KS to reduce risks of exchange rate fluctuation and supply delay,” Andi said.

President director of PT MJIS, Anwar Ibrahin, is optimistic his company could meet KS`s needs of raw materials. In March the company delivered its first shipment of 5,000 metric tons of iron sponge to PT KS. “PT MJIS`s plant in Batulicin, South Kalimantan, has met three main criteria namely iron ore supply, coal supply and access to transport its product to Cilegon,” Anwar said.

According to him PT MJIS processed local iron ore into iron sponge as an alternative raw materials for steel making at PT KS.

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Business

Dahlan Urges State Companies To Expand to Philippines kemlu.go.id

The Philippines is serious in its invitation to Indonesia to develop palm oil industry in Southern Philippines including oil palm plantations and palm oil factories using high technology.

ately congratulated him for the achievement.

S

tate enterprises minister Dahlan Iskan has called on state-owned companies to expand to the Philippines to tap into that country`s growth reaching 7.8 percent in the first quarter this year.

“The Philippine economic growth is at its highest. So that country certainly will need more investment to maintain the growth. This is an opportunity for state-owned companies to expand there,” he said at “fun talks” with the media at his office here on Friday.

Early on Friday morning Dahlan attended a “Breakfast Meeting” with a number of Philippine officials in Manila to discuss investment between Indonesia and the Philippines. The meeting was

Dahlan attended a “Breakfast Meeting” with a number of Philippine officials in Manila to discuss investment between Indonesia and the Philippines. attended by Philippine deputy minister for political affairs and minister of foreign affairs, Evan P Garcia, the minister of finance, Cesa V Purisima, and the minister of industries and trade, Gregory L Domingo.

Dahlan said before meeting with the Philippine officials he heard that the Philippine statistics bureau had just announced that the country`s economy had grown 7.8 percent. “This is the highest in Asia, up from 6.7 per-

cent recorded in the year before.

It is also higher than that of Indonesia at 6.2 percent in the first quarter of 2013,” he said.

When meeting with Philippine President Benigno Aquino III, Dahlan said he immedi-

The Philippines is serious in its invitation to Indonesia to develop palm oil industry in Southern Philippines including oil palm plantations and palm oil factories using high technology.

The Philippines view that Indonesia has successfully developed palm oil industry and has even surpassed that of Malaysia. “They are surprised by Indonesia`s experience and the technology that it has mastered to develop oil palms that could start bearing fruits at the age of 2.5 years,” Dahlan said.

He said he called on PT Perkebunan Nusantara to (PTPN) immediately follow it up by expanding there. “Later PTPN could set up a joint venture with a Philippine state-owned company,” he said.

Besides palm industry, the Philippine has also expressed its interest in procuring CN 235, NC 212, CN 295 planes made by PT Dirgantara Indonesia. That country is also interested to cooperate with Bank Syariah from Indonesia to develop shariahbased banks in that country, he said.

Mobil to Boost Crude Oil Production from Cepu Block Mobil Cepu Limited (MCL) said it plans to boost its crude oil production from the Banyuurip A field in the Cepu Block in Bojonegoro, East Java to 28,000 barrels per day from 24,000 barrels at present.

An MCL spokesman Rexy Mawardijaya said here on Saturday the production would be increased by optimizing production from four wells with two injection wells. The plan, however, is still being studied as the condition has to be safe before boosting production, Rexy said.

“The study is needed to ensure that the condition of the wells remain stable after production is increased,” he added.

He said part or 6,000 barrels of daily crude oil production from the Banyuurip field in the

village of Mojodelik, sub-district of Ngasem, is used to feed a mini oil refinery operated by Tri Wahana Universal (TWU). The rest is channeled through a pipeline to the Mudi field in the village of Rahayu, sub-district of Soko in Tuban, and from which it is distributed to the storage place in the sea off Tuban, he said.

“The plan is the B and C fields will have 16 production wells each. At present drilling has started using mobile rigs,” Rexy said.

Deputy Development Manager of MCL Elviera Putri said the government has set a target for the company to complete the first up the fifth phases of engineering, procurement and constructions (EPL) project in August 2014.

The Cepu block, after it operates at full capacity, is expected to reverse the declining trend of the country’s oil production. The country’s crude oil production has been on the decline over the past several years resulting in the country becoming big net imports of oil.

Earlier, head of the Working Unit of the Upstream Oil and Gas Regulator (SKK Migas) Rudi Rubiandini asked MCL and the contractors of the “EPC” I, II, III, IV and V to meet their working commitment in line with their contracts. “We ask MCL to bring to reality the plan that Cepu Block would begin to operate fully with peak production at 165,000 barrels per day in August 2014,” Rudi said.

The Cepu block, after it operates at full capacity, is expected to reverse the declining trend of the country`s oil production.

The country`s crude oil production has been on the decline over the past several years resulting in the country becoming big net imports of oil.

Currently the oil production of the country` formerly a major oil exporters and a member of OPEC, has dropped to less than 900,000 barrels per day as against consumption of around 1.3 million barrels.

Meanwhile, the Bojonegoro Regent Suyoto has threatened to cancel the operation license of MCL in Bojonegoro for delay in settling the compensation of land village used by the company in that area. Both Elviera and Rexy said the company responded positively to the demand of the Bojonegoro regent that work in the C field be stopped over failure to settle the compensation.

“We will soon wrap up the process without breaking the regulation,” Rexy said.

indoflyer.net

Pelindo Invests Rp600b On Expansion of Port

Senegal intends to buy two CN-235-220 planes from state aircraft manufacturer PT Dirgantara Indonesia (PTDI) to meet its VIP and air transportation needs.

PTDI Sells CN-235s To Senegal Senegal intends to buy two CN-235-220 planes from state aircraft manufacturer PT Dirgantara Indonesia (PTDI) to meet its VIP and air transportation needs.

Senegalese Armed Forces Minister Augustine Tine revealed the intention during a meeting with bilateral cooperation groups of the House of Representatives and the Senegalese Parliament at his office recently, head of the Indonesian delegation to the meeting Tantowi Yahya said in a press

statement released on Saturday night.

Tantowi said the meeting also discussed a plan to open a Senegalese representative office in Indonesia as part of efforts to strengthen cooperation after the Indonesian government opened its embassy in Dakar in 1982.

To create mutually beneficial relations, the two countries are in the process of finalizing a draft memorandum of understanding on the formation of a joint commission, he said.

The Indonesian parliamentary delegation consisting of five

members from the Democrat Party, Golkar Party and Indonesian Democratic Party of Struggle (PDIP) factions paid a working visit to Senegal on May 14-17.

Indonesia and Senegal officially established relations on October 3, 1980. Trade between the two countries reached $46.1 million in 2012, with Indonesia`s exports to the West African country valued at $43 million. The exports included animal and vegetable oils, machinery, chemicals, garments and utensils.

PT Pelindo I said it has invested more than Rp600 billion to modernize the Dumai port as a hub port in the past three years.

Facilities have been built to facilitate crude palm oil exports (CPO) from the country`s largest palm oil producing province. The facilities include a liquid bulk terminal at the B quay, expansion of the B quay and dry bulk terminal, Aprilia Dwison, deputy general manager of the Dumai branch of the state port operator, said.

The dry bulk terminal development project includes development of two units of warehouse in 2010, loading an unloading equipment, power plant (20102011), bagging system, and conveyor system, Aprilia said here on Wednesday This year Pelindo I will build one more unit of warehouse to make complete the facilities in the dry bulk terminal in the port of Dumai, he said.

After completing the development of the terminal and other facilities since 2010, Pelindo I of Dumai will set aside Rp49 billion for further expansion of the port, he said. “In 2013, we would not invest much in Dumai after what has been done in 20102012. This year we need only to complete work already running,” he said.

He said it was wrong to address criticism to Pelindo about

In 2013, we would not invest much in Dumai after what has been done in 2010-2012.

This year we need only to complete work already running.” high handling cost in the port.

Pelindo charges only cost for the quay and ship mooring services in the quay, he said, adding Pelindo I charges Rp6,750 per ton for the services. One of the hurdles faced in industrial development in Dumai, is infrastructure being inadequate like roads, he said.

Executive director of the association of vegetable industry (GIMNI) Sahat M Sinaga asked Pelindo to team up with other port operators in Dumai to jointly seek to accelerate development of infrastructure in Dumai.

“Pelindo should not see Wilmar, the owner and operator of the Dumai Industrial Estate, as a rival. On the contrary it should be seen as a partner,” Sahat said.

Wilmar, the giant palm oil company also has seaport integrated with its industrial estate.

Riau is the country`s largest palm oil producing province.

Garuda to Build Maintenance Facility at Hang Nadim, Batam PT Garuda Indonesia will set up a maintenance facility at Hang Nadim International Airport in Batam, Riau Islands, a local official said.

“Garuda was studying to set up the Garuda Maintenance Facility at Kuala Namo International Airport in North Sumatra but finally it chooses Hang Nadim,” Batam Free Trade Zone Authority (BP Batam) spokesman Ilham Eka said here on Tuesday.

He said they need 48 hectares of land for the facility but initially they would only develop 15 hectares of it and would need 400 to 600 workers. “The signing of the coop-

eration agreement will be done

by BP Batam and Garuda Indonesia,” he said.

With Garuda`s presence Hang Nadim would have three aircraft maintenance facilities namely the GMF, the MRO belonging to Lion Group and PT Indonesia Aero Maintenance (IAM).

The Hang Nadim international airport on Batam Island located about 20 kilometers south of Singapore has a 4,025 kilometer long runway. This is what has probably made the companies to decide to set up the facilities here, he said.

“Its free trade zone status is also a supporting factor for companies wishing to develop industries in Batam,” he said.

BI to Study HSBC Share Sale Bank Indonesia will study the planned sale of HSBC`s shares in PT Bank Ekonomi Raharja Tbk. worth $670 million, Agus Martowardojo said.

“Any bank wishes to conduct a corporate action will certainly ask for BI`s permission and BI will study it,” the central bank`s governor said before a working meeting with the House of Representatives` Budget Committee to discuss the draft revised 2013 budget here on Monday.

HSBC Holdings Plc. is considering to sell 99 percent of its shares in PT Bank Ekonomi Raharja Tbk as part of its efforts to streamline its businesses. It said it is consider-

ing a strategic option for the sale of the shares after the Indonesia Stock Exchange asked Ekonomi to clarify its position with regard to market speculations.l If the option to sell Bank Ekonomi shares is taken, the proceeds would still be invested in Indonesia, which remains one of the 22 HSBC priority markets.

HSBC bought 88.9 percent of Bank Ekonomi shares worth $607.5 million in October 2008 and the London-based bank bought another ten percent later in August 2009 at a cost of $71.6 million.

The bank has sold and closed more than 50 of its businesses considered not profitable in the past two years.

Pertamina Discovers New Oil Reserves in S. Kalimantan Pertamina EP said it has found new oil and gas reserve in the Sungai Jaing area of the Tabalong regency, South Kalimantan.

The subsidiary of state oil and gas company PT Pertamina is now seeking local permit and principle license from the Tabalong district administration, company`s spokesman Ruspandi said.

The location permit and principle license are required before starting drilling, Ruspandi said here on Wednesday.

Earlier, Himawan Djatmiko, an assistant law and community manager of Per-

tamina EP, said Sungai Jaing in the sub-district of Pugaan, is a new operational area as so far the company had concentrated explorations only in the sub-districts of Tanta, Tanjung and Murung Pudak. “Pertamina EP expanded operation including to the sub-district of Pugaan,” Himawan.

Pertamina EP has explored three new wells in the sub-districts of Tanta and Murung Pudak, as part of its plan to have 7 additional wells in 2013. With the additional wells, Pertamina EP hopes to turn out 5,000 barrels of crude oil per day in that area.

Swedish Companies Eye Indonesia The number of Swedish companies in Indonesia has increased by 50 percent in the past two years, showing the Swedish investors` great interests in Southeast Asia`s largest economy, Swedish Prime Minister Fredrik Reinfeldt said.

“When I spoke with the Swedish business delegation during a visit to Jakarta last year I felt their strong spirit to invest in Indonesia,” he said at a joint press conference with visiting President Susilo Bambang Yudhoyono at his office last month.

He said Indonesia is the world`s third biggest democratic country with a fantas-

tic economic growth of six percent a year. He said the growth opened potential trade between the two countries moreover now when economic growth in the European region was still around one percent.

In the past five years the two countries` trade had continued to grow by up to 6.91 percent.

Total bilateral trade between the two countries in 2012 reached $1.46 billion, up 28 percent from the year before when it was $1.05 billion.

Swedish investment in Indonesia in 2012 reached $5.2 million in 11 projects, rising four times from the year before recorded at $916,000 in nine projects.

Telkom Invests Rp1.7t in Fiber Optic Cable State telecommunications operator PT Telekomunikasi Indonesia (Telkom) has set aside Rp1.7 trillion in funds to build fiber optic submarine cable which will connect the two eastern Indonesian provinces of Maluku and Papua.

“The submarine cable is expected to start operating in 2015 so it can increase broadband services in the eastern part of Indonesia and improve the competitive edge of the region,” Telkom President Director Arief Yahya said here on Tuesday.

Arief said the MalukuPapua fiber optic submarine cable project called Maluku Cable System (MSC) is divided into two packages of jobs.

The first package covers the construction of a 1,300 kilometer-long submarine cable connecting Sulawesi, Maluku, North Maluku, Sorong and Fakfak and will be done

by Alcatel Submarine Network (ASN) at a cost of Rp1

trillion, he said.

He said the second package which covers the construction of 2,200 kilometer-long cable network connecting cities in Papua and West Papua provinces will be carried out by NEC at a cost of Rp700 billion.

The MCS is part of a 10,812 kilometer-long fiber optic cable that will connect Sulawesi, Nusa Tenggara, Maluku and Papua.

It will also be part of the larger Palapa Ring fiber optic project, aimed at connecting all the country`s 33 provinces and over 450 districts and municipalities.

Earlier, in 2011, PT Telkom also built a 1,041 kilometer-long fiber optic cable connecting Mataram, capital of West Nusa Tenggara province, and Kupang, capital of East Nusa Tenggara province.

The construction of MataramKupang cable system is a milestone in the development of information and communications technology (ICT) infrastructure for the country`s eastern regions.

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June 2013 Vol.2 No. 6

B3

Investment

SBY: RI Remains Attractive To Oil and Gas Investment migas.esdm.go.id

President Susilo Bambang Yudhoyono has convinced industrialists that Indonesia remained attractive to oil and gas investment.

T

he head of state made the statement when he opened the 37th Indonesia Petroleum Association (IPA) convention and exhibition at Jakarta Convention Center here on Wednesday.

“I would like to convince you that Indonesia remains an attractive country for both domestic and foreign investors to invest in oil and gas upstream sectors which are full of risk, solid in capital and technology,” President Yudhoyono told hundreds of participants of the IPA convention and exhibition.

The 37th IPA convention and exhibition 2013 from May 15 to 17 was themed “Promoting Investment in Challenging Environment”.

“The theme of the IPA convention and exhibition this year is very relevant with the intention of Indonesian Government to push investment in oil and gas sectors,” the president said, adding that the oil and gas sectors were the national economic backbones and therefore its contributions should be sustained and increased.

Yudhoyono noted that geopolitically, there has been a shift in

President SBY opened the 37th Indonesia Petroleum Association (IPA) convention and exhibition at Jakarta Convention Center here on Wednesday. the area of energy use. He said Europe was the biggest energy consumer in the past but now it has shifted to Asian region whose economic growth continued to develop.

The president added that the government also continued to improve investment climate in

oil and gas sector through the Presidential Instruction (Inpres) No.2/2012 on the national increase in oil production. In the Inpres, related institutions are asked to improve an overall coordination, synergy, and synchronization to support oil and gas production.

China Power to Invest $17b Power Project China Power Investment (CPI) Corp plans to invest US$17 billion in a hydro power generating project in northern part of Kalimantan.

“The power plant will be built on the Kayan river,” Energy and Mineral Resources Minister Jero Wacik said after a meeting with Xia Zhong, the vice president of the Chinese state company here on Monday.

The power plant, which will have a capacity of 7,000 megawatts, will be built in five phases, Jero said.

Jero said construction of the project is expected to start in

2014 and to be completed in five years. He said CPI is required to team up with local subs-contractors and to observe corporate social responsibility in the villages where they invest. The project is also expected to benefit local people in the form of jobs being created,he added.

He said CPI is also interested in solar power generating projects being launched in various isolated areas in the country and investment in mineral smelters in Indonesia. “They know Indonesia is seeking a solution to the need for smelters such as bauxite smelter,” he said.

The country needs more mineral smelters after mineral ore exports are banned in 2014.

CPI is one of China`s five largest state companies. It is a widely diversified corporation with business in energy, coal mining,aluminum , railway and port operations. Earlier CPI cooperated with the Myanmar government to build the Myitsone Dam, a big dam completed in 2017.

The dam will feed a power plant with a 3,600 up to 6,000 megawatt of power to be supplied to the province Yunan.

Ministry Provides Rp9.7b For Morotai Development State Enterprises (BUMN) Ministry has provided at least RP9.7 billion for development of five projects in Morotai District, North Maluku Province.

“The district administration will use the funds for constructions of a community health center (Puskesmas), Al Khairat health vocational school and three clean water supply facilities. The funds will also be used to buy two water tank cars and five fishing boats,” said special staff of the BUMN ministry Pandu Wijayanto here on Saturday.

The Ministry, said Wijayan-

to, will also give RP200 million of funds to Morotai for a mangrove rehabilitation project as a regreening program in coastal area. According to him, the BUMN ministry gives several power generators to increase the capacity of the local state electricity company (PLN) so that they can optimize their services to meet the public needs.

Wijayanto explained the ministry had paid special attention to development in remote areas such as Morotai. “We will also train a number of people in Morotai on how to process coconut

commodity to improve public welfare and add more values to the commodity,” Wijayanto said.

Deputy District Head of Morotai Weni Paraisu said his administration appreciates the ministry for providing the assistance.

The local authorities will monitor the implementation of development projects to avoid funds misuse. “Morotai has been an independent district since three years ago. As the district is located in border area, so we still need assistance from the central government, including several state institutions,” Paraisu said.

Asahimas to Invest $400m to Boost Production Capacity Japanese chemical company PT Asahi Chemical plans to invest $400 million to increase its production capacity.

“The $300 to $400 million investment would be used for expanding the plant,” the company`s director, Eddy Sutanto, said here on Wednesday.

He said the plant capacity would be increased for the production of caustic soda and polyvinyl chloride (PVC). The plan is expected to be started at the end of 2013. Right now the plan

is still awaiting approval from shareholders, he said.

The capacity hike plan will be carried out by expanding the plant in Cilegon, West Java. With the increasing plant capacity the company expects production of caustic soda and PVC could be increased from 500,000 tons and 250,000 tons respectively to 700,000 tons and 600,000 tons, he said.

The plan is aimed at “meeting the needs of basic chemicals such as for soap, plastic, cloth,

textile production and domestic as well as export markets.”

Right now 80 percent of PT Asahimmas` products are used as raw materials in domestic industries while the rest is exported.

“With the expansion we predict there will be a hike in exports,” he said.

The project is expected to be completed in two to two and a half years` time and so the plant is expected to start production at the end of 2015 or early in 2016.

President Yudhoyono has also formed a team, led by Coordinating Minister of Economic Affairs Hatta Rajasa and head of Investment Coordinating Board Chatib Basri, to trim business licensing process in order to encourage investment.

Further, he added that the government in the long term has had a blue print to speed up oil and gas industrial development through the implementation of the Masterplan for Acceleration and Expansion of Indonesia`s Economic Development (MP3EI).

Singapore Developers Explore Investment in RI Some members of the Real Estate Developers` Association of Singapore (REDAS) are currently exploring investment opportunity in Indonesia in a meeting with officials of the Investment Coordinating Board (BKPM) and the Provincial Government of DKI Jakarta.

According to a press release from the Indonesian Real Estate (REI) received here on Thursday, the delegation of REDAS being led by its President Chia Boon Kuah, is on a visit to Indonesia.

The delegation consists of 22 members representing 14 leading developer groups in Singapore and several other Asian countries, including Japan, China, and Malaysia.

Chia Boon Kuah explained that the purpose of the visit was to receive firsthand information about the property development industry in Jakarta. The association`s members also directly learned about the construction investment regulations and rules explained by concerned authorities.

The foreign developers during the visit were accompanied by Deputy Secretary-General of REI Rusmin Lawin, who is also concurrently the secretary general of The International Real Estate Federation (FIABCI) for the Asia Pacific Regional Secretariat.

They among other things visited elite property projects such as those located at Pantai Indah Kapuk area, Casa Jardin Garden,

The rapid development of industrial properties in the Greater Jakarta area in recent years has attracted foreign investors.

Rusmin Lawin Deputy Secretary-General of REI Central Park, Ciputra World and Kemang Village.

Later they paid a visit to the BKPM headquarters in order to find out more about the investment regulations and then continued with a visit to the office of Governor of DKI Jakarta.

Rusmin said the rapid development of industrial properties in the Greater Jakarta area in recent years has attracted foreign investors. “Indeed, we know that the demands for public housing are still very high, but we should be able to see from the perspective that the property industry sector is the same as other industries that we need to encourage the achievement of the `Foreign Direct Investment`,” he said.

Moreover, the property industry has huge multiplier effects, among other thing, it could move about 100 types of industry from upstream to downstream.

Rusmin asserted that the industry is also very labor intensive so that the property sector will create a lot of job opportunities.

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June 2013 Vol.2 No. 6

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Infrastructure

Public Works: National Roads Improvement Completed Before Lebaran bisnis-jateng.com

Balai Besar V (Main Office V) for National Road Organisation of the Ministry of Public Works, has got a budget of Rp 3.6 trillion this year for the improvement of national roads along 3,569km in the provinces of Central Java, Yogyakarta Special Region (DI Yogyakarta) and East Java. The funding allocation registers an increase of about Rp 200 billion compared to last year.

M

inister of Public Works (PU) Djoko Kirmanto has made a target: improvement of national roads will be completed before the Lebaran [Eid ul-Fitr] season of 2013. Repair works are presently underway, such as in the North Coast (Pantura) line of Java and the Solo-Yogyakarta line.

“I give time for all the road repair works to be completed before Lebaran, so that people who perform the Lebaran tradition will not get disturbed,” said Djoko in Surakarta, Tuesday (21 May).

According to Djoko, the condition of infrastructure network in developing countries, including Indonesia, is still inadequate, thus hampering efforts to improve the people’s welfare. On the other hand, infrastructure development becomes one of those important factors in speeding up the achievement of national economic growth target.

“The welfare of the people of a country is measured by their ease in obtaining infrastructure services, in addition to other aspects such as human resources (HR) and technology readiness,” he added.

Meanwhile, Balai Besar V (Main Office V) for National Road Organisation of the Ministry of Public Works, has got a budget of Rp 3.6 trillion this year for the improvement of national roads along 3,569km in the provinces of Central Java, Yogyakarta Special Region (DI Yogyakarta) and East Java. The funding allocation registers an increase of about Rp 200 billion compared to last year.

Head of Balai Besar V for National Road Organisation, Masrianto, said that the funding allocation is divided into the maintenance of national roads in East Java, along 2,000 km, worth Rp 1.2 trillion, in Central Java, along 1,200 km worth Rp 2.1 trillion, and in Yogyakarta, along 369 km worth around Rp 400 billion.

“The funds are allocated for maintenance, construction, and improvement of the structures of the national road networks in the three provinces,” said Masrianto.

The funds are also used to finance the construction of the 20km-long Solo-Kertosono toll road. Construction of this freeway is expected to be completed by the end of this year.

According to him, the road maintenance budget allocation in Central Java is larger than that for East Java, because the Pantura road in Central, which spans 369km, bears the heavy burden of large vehicle traffic.

Because of that, he said, larger road repair and construction funds are needed.

“This is not to mention that the government needs to repair the national in the middle and southern lines of Central Java,” he added.

Head of Centre for Public Communication of the Ministry of Public Works Danis H Sumadilaga added that traffic and logistics flows through the land infrastructure access on the Island of Java reach 90 percent. About 85 percent of these use the Pantura national road of Java, and five percent use the railway. As a result, the burden of the national road on the island of Java has exceeded the capacity.

“I think there needs to be other modes of transportation in order to reduce the burden on the Pantura road of Java,” he said.

The presence of Trans-Java toll road, which connects Jakarta all the way to Surabaya, is

The presence of Trans-Java toll road, which connects Jakarta all the way to Surabaya, is considered capable of reducing the burden on the Pantura road of Java by up to 60 percent. Currently, Java’s Pantura national road bears the burden with an average daily traffic amounting to 40,000 vehicles. Some of the vehicles passing through the road are large vehicles with the heaviest axis load (MST) over 10 tones. In fact, the government-made Pantura road is only designed to accommodate loads of up to 10 tonnes.

considered capable of reducing the burden on the Pantura road of Java by up to 60 percent. Similarly, the double track railway line in Java can relocate the burden of logistics and trailer vehi-

cles to the train.

Currently, Java’s Pantura national road bears the burden with an average daily traffic amounting to 40,000 vehicles.

Some of the vehicles passing

through the road are large vehicles with the heaviest axis load (MST) over 10 tones. In fact, the government-made Pantura road is only designed to accommodate loads of up to 10 tonnes.

Two BUMNs Work on Port Monorail PT Pelabuhan Indonesia III and PT Adhi Karya Tbk will work on the monorail project for transporting containers from the Port of Tanjung Perak of Surabaya to the Multipurpose Terminal of Teluk Lamong, which is worth around Rp 2.5 trillion.

Commercial and Business Development Director of PT Pelabuhan Indonesia (Pelindo) III Hussein Latif said that the monorail project, which is called Automatic Container Transporter (ACT), will start from the Port of Tanjung heading to Teluk Lamong Multipurpose Terminal, covering a distance of 5.6km.

He said the memorandum of understanding on the assessment of the container monorail project plan has been signed by both parties at the beginning of this month.

Subsequently, he explained, the two state-owned companies (BUMNs) will establish a team to prepare an assessment within the framework of further implementing the business coopera-

Automatic Container Transporter (ACT) is a monorail transport mode for containers that will help distribute the containers from the port to the depot, and vice versa, to accelerate the delivery of goods as well as dealing with congestion in transport vehicles traffic. tion in the form of the establishment of a joint venture company or other collaborative concepts.

Husein described that the two sides will carry out a pre-feasibility study or feasibility study that covers financial, commer-

After over four years of operation, Suramadu is considered unable to boost the economy of the surrounding region, particularly in Madura. An estimated Rp150 trillion is needed to develop this region.

“It would provide an area of trade and services, ports, industrial areas, toll roads and surrounding settlements,” said Agus Wahyudi, Deputy Management of Suramadu Region Development Agency.

He said the acceleration target in 2024 is to reach 8% of the economy development in Suramadu region. The bases of the bridge in Surabaya (250 ha) and in Madura (600ha) will be built into several areas.

In addition, a container port in Madura will also be built on an area of 600 hectares. According to Agus, the fund will be obtained in small portion from

It would provide an area of trade and services, ports, industrial areas, toll roads and surrounding settlements.”

Agus Wahyudi Deputy Management of Suramadu Region Development Agency the government. “Private sector funds will be more dominant,” he said.

This year, the government is to spend Rp 390 billion to develop the Madura region. Meanwhile, for maintenance cost, the government is set to spend up to Rp 600 billion. Regarding land acquisition, according to Agus, it

TELAH TERBIT!

EDISI JUNI 2013

cial, technical, legal, and other aspects.

“A survey will also be conducted on land, demand, and container transport rates, including the placement of a central train station in an area that connects Tanjung Perak with the Multipurpose Terminal,” he said.

He explained that the ACT is a monorail transport mode for containers that will help distribute the containers from the port to the depot, and vice versa, to accelerate the delivery of goods as well as dealing with congestion in transport vehicles traffic.

COVERSTORY

Saatnya ‘Setrum’ untuk Semua Ketersediaan energi berbasis fosil yang terus menyusut mendorong pemerintah mengarahkan pengembangan pembangkit listrik berbasis energy baru dan terbarukan.

Stimulus pun disiapkan agar swasta tertarik bergabun. Demi teralirnya ‘setrum’ untuk publik

The transport mode is developed for container freight from the stock yard, or the dry port, to the port so that it will be more practical and efficient.

“This is the first in the world, an automatic container transporter. The funds required amount to Rp 2.5 trillion, with 12 months period for constructing it. This will reduce congestion around Tanjung Perak, Surabaya,” he said.

Rp 150t Needed for Suramadu is not necessarily that the government has to start it first; the most important is the government’s investment. Thus, Agus said that it would be better if the revenue from the Suramadu toll road is used to construct another toll road.

Until now, the revenue of toll road is collected by the State Ministry of Public Works.

According to Agus, with the exclusion policy for Suramadu toll revenues, the development of Madura will be more advanced.

“The construction of the highway will develop the surrounding area such as industrial area, residential, warehouses, and port.

Agus said that this exception has been proposed and is still waiting the approval from the minister. According to him, the construction of Madura is still not well organized.

“This design is based on international standards of road construction. Road damage still occurs because of loads that exceed the capacity of the road that has been built,” he said.

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Event Reviews BREAKFAST DIALOGUE

“China Ahead: Xi Jinping’s Style and Substance” TPP/Rians Rivco

Financial Club Jakarta held a Breakfast Dialogue themed “China Ahead: Xi Jinping’s Style and Substance on Wednesday (15/5).

N

atalia Soebagjo from the Center for Chinese Studies and Kompas senior journalist Rene Pattiradjawane presented the results of their analyses of Xi Jinping’s style in leading China.

Natalia Soebagjo said that Xi is the fifth generation leader who will change China. Xi was born on June 15, 1953 in Beijing. He grew up in Fuping, Shaanxi Province in northwest China. Xi comes from the Chinese elite; he is the son of one of the first generation of revolutionary leaders of China, Xi Zhongxun.

His father was elected as a member of the China Communist Party Central Committee at the congress in 1956. Three years later his father was appointed as deputy prime minister accompanying Zhou Enlai.

At that time, Xi enjoyed periods of being a son of an official.

His political career began by becoming the party’s secretary of Hebei Province branch. In 1979-1982 he was appointed as Geng Biao’s secretary, who later became prime minister and chairman of the military commission.

Xi Jinping’s career continues to shine as he became Party’s Chief and Governor of Fujian in 2000. Two years later, Xi became Party’s Chief as well as Governor of Zhejiang Province and later the member of the Central Committee at the 16th Congress of the China Communist Party.

Xi then moved to Shanghai as

LEFT TO RIGHT: Natalia Soebagjo, Rene Pattiradjawane, Ali Basyah Suryo.

The speakers and the moderator.

the party’s chief and a year later became a member of the Standing Committee and was elected as Vice President.

At the 18th Congress of the China Communist Party in November 2012, Xi Jinping was appointed as General Secretary of the China Communist Party.

Natalia also explained some of China’s goals, which is to double the GDP per capita in 2020, and in the middle of the 21st century, China will become a modern socialist country that is prosperous, strong, democratic, developed in culture, and harmony.

Besides, China also has the dream known as “The Chinese Dream”, which is to restore the past glory of China.

Rene Pattiradjawane said that Xi’s leadership will not differ much from that of its predecessor. Xi will rely on economic growth to accelerate the realization of “The Chinese Dream”.

Natalia Soebagjo, Founder of Center for Chinese Studies.

Rene Pattiradjawane, Senior Journalist OF Kompas.

Atmono Suryo, a Financial Club member, asked about the role of China in the global economy.

EU Blue Book 2013 Launching TPP/Rians Rivco

RI and the European Union launched a development cooperation report known as the Blue Book 2013 on Tuesday (21/5), at Le Meridien Hotel, Jakarta.

“B

lue Book 2013” describes the EU’s support for Indonesia that is worth more than €300 million in 2012, which is channeled to the education sector, economic cooperation, trade and investment, environment and climate change, urban development, health, water and sanitation, and disaster-handling and conflict prevention.

In the launching, the representatives of the Indonesian government and international community discussed the ‘status quo’ and the future prospects of EU-Indonesia cooperation.

The discussion focuses on environmental issues and climate change and highlights ways to strengthen cooperation in these sectors.

EU Ambassador to Indonesia, Brunei Darussalam and ASEAN, Julian Wilson stated that Indonesia is a new commercial economy power with a high annual growth expected to exceed 6%. “EU and Indonesia are strong partners and we are jointly working to find solutions to address today’s global challenges,” he said.

He added, “Together with Indonesia, we want to build a modern and broad-minded cooperation on the basis of the equal partnership principle and dialogue in areas such as climate change, transnational crime, good global governance and regional security.”

Ambassador and Head of Delegation of the European Union (EU) to Indonesia, Brunei and ASEAN Julian Wilson.

Chief of Bappenas in Development Funding Wismana Adi Suryabrata.

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Events Review BREAKFAST DIALOGUE

Education on Leader’s Perspective TPP/Rians Rivco

The Financial Club held a Breakfast Dialouge with the theme “Education on Leaders’ Perspective”. The speakers at the event were Hasnul Suhaimi CEO of PT XL Axiata, Goris Mutaqim from Asgar Muda Foundation, and Shafiq Pontoh from Gerakan Indonesia Berkibar.

G

erakan Indonesia Berkibar is an educational movement that continually supports government programs. This movement is designed to improve the quality of teaching and learning through advanced training and assistance to educators.

Shafiq Pontoh said that Gerakan Indonesia Berkibar was inaugurated last year by Education Minister Muhammad Nuh. His team has made visits to various cities such as Manado, Makassar, Medan, Surabaya, etc. to identify the needs of students, teachers and the schools.

Meanwhile, Asgar Muda Foundation, founded by Goris Mutaqim, seeks to build Garut by being an entrepreneurial incubator.

Goris Muttaqin said that education is the escalator to improve one’s social class and alter one’s destiny. Due to high education costs, the bottom class of society still cannot enjoy a better educa-

tion. This will widen the disparity of poor and rich in the future, he said.

He added Indonesia’s economy is growing vastly yet faces challenges at micro level and in infrastructure. Therefore, a breakthrough was made by providing training, scholarships, and building parents’ prosperity by planting trees that will be beneficial five to ten years from now.

According to him, the foundation is developing villages by promoting education and social entrepreneurship.

On the same occasion Hasnul Suhaimi said that his company (XL) is engaged in CSR by providing computers for middle-class schools, scholarships, and opens internship opportunities for S1 and high school graduates. Hasnul invites other parties to work together as supporters, donors, facilitators, and support government’s program on education.

Shafiq Pontoh (right) said that Gerakan Indonesia Berkibar was inaugurated last year by Education Minister Muhammad Nuh. His team has made visits to various cities such as Manado, Makassar, Medan, Surabaya, etc. to identify the needs of students, teachers and the schools.

Indonesia Youth Forum 2013 TPP/Heros Barasakti

Closing remarks by Minister of Youth and Sports Affairs Roy Suryo.

Indonesia Youth Forum (IYF) 2013, organized by Indonesia Student and Youth Forum in Bandung, was held on May 23-26 at Gedung Merdeka Bandung. The IYF is a national youth forum attended by 200 selected youngsters from 25 provinces in Indonesia.

IYF 2013 female participants wearing traditional clothes of each region.

I

t was opened by the Vice Major of Bandung, Ayi Vivananda, and continued with the next program, “Meet the Leader” with Regent of Wakatobi, Regent of East Belitung, representatives from the State Ministry for Cooperative Small and Medium Enterprises, Ministry of Foreign Affairs, and Ministry of Health.

IYF also held “Meet the CEO”

with CEO of Social Security, CEO of Bumbu Desa, Microsoft Indonesia, British Council, and founder of Peace Generation, free milk distribution at Car Free Day Dago, and mangrove planting in Babakan Siliwangi Bandung. The closing ceremony was attended by Minister of Youth and Sports Affairs Roy Suryo.

In his speech, the Minister said “I personally support all the

gathering delegates from 25 provinces, representing not only their provinces but also their smaller regions. Indonesia is rich and culturally diverse. We can start from small things that will eventually become bigger.”

Every delegate came with their own social project presentation as the main requirement to take part in the IYF 2013.

The projects must relate to their

background, such as education, environment, sociology, empowerment, exchange, business, information technology, and others.

Indonesia Youth Forum is an annual event, and next year, Wakatobi will host the forum.

Students who are interested in joining the IYF 2014 must prepare themselves by starting with a small contribution for society.

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June 2013 Vol.2 No. 6

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Pictorial Events

IABC Member Gathering E

TPP/Rians Rivco

nvironmental sustainability was the theme of IABC Members Gathering held at Hotel Borobudur, May 23.

The event was attended by approximately 150 IABC members and invited guests, among others, Australia’s ambassador, Greg Moriarty, Vice President of Bank ANZ Indonesia, Leone Lethbridge, and President Director of Indonesia Crowne, Martin Cole and business people and members of the media. The event was sponsored by ANZ, Crowne Indonesia and Hotel Borobudur.

Martin Cole, President Director of Crowne Indonesia.

LEFT TO RIGHT: Elly Lawson, IABC Advisor, Steve Scott from the Australian Embassy, Leone Lethbridge, Vice President of PT Bank ANZ Indonesia.

ICT Carnival 2013 Huawei introduced the latest Information and Communication Technology (ICT) namely, LTE (Long Term Evolution) TDD (Time Division Duplex). This new service has a higher capacity than 3G networks.

This new technology was introduced at the opening of the Indonesian ICT (Indonesia Communication and Technology) Carnival 2013, which was opened by Ambassador of the Republic of China to Indonesia Liu Jianchao.

The event, which was held on May 20-23, is coupled with LTE TDD conference activities, integrated workshops, demo trucks, and exhibitions.

The LTE technology for communication claims able to meet the demands of customers with efficient investment. It also claims as the most appropriate technology to meet current high demand for data services in Indonesia, where it can further optimize the spectrum of valuable resource, with higher capacity and higher speed, thereby reducing delays in the delivery of data services in order to provide better customer experience.

LTE technology in Indonesia is expected to be used next year.

Frequency to be used in running LTE is 2.3 GHz, which is already allocated for neutral technology.

“Through the LTE-TDD solution, various cellular operators in Indonesia can respond and meet the needs and eliminate gaps when switching the path from 3G to LTE,” said Vincent Li, CEO of Huawei Indonesia on the opening of ICT Carnival 2013.

Currently the Indonesian ICT industry focuses on 3G channel rearrangement which causes delays due to signal interference. At present, some operators have tested the 4G service, but the presence of 4G services in Indonesia is likely to be available only when the new 3G channel is settled.

TPP/Rians Rivco

Soft Opening of Sheraton Bandara Hotel Spa & Massage Facility TPP/Rians Rivco

The Sheraton Bandara Hotel held the soft opening of its spa and massage facility on May 24.

The new facility gives maximum services to guests. As the nearest hotel to the airport, the Sheraton wants to give complete services especially to transit guests who have little time in Jakarta but require treatment to refresh themselves.

General Manager of Sheraton Bandara Hotel Andreas Rud stated that, “Spa and Massage facility at the hotel is expected to be utilized by the guests.”

The facility has a ladies whirlpool, foot massage room, couples room, sauna and steam room and others.

The Soft Opening of Sheraton Bandara Hotel Spa & Massage Facility.

Chinese Ambassador to Indonesia Liu Jianchao opens the ICT Carnival 2013.

Andreas Rud, General Manager of Sheraton Bandara Hotel.

Ladies Whirlpool.

Ladies Massage Room .

Foot Massage Room.

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Pictorial Events

Sahid Group’s 60th Anniversary DOK. SAHID

The Sahid Group celebrated its 60th anniversary on June 1. It was established on June 1, 1953, by Prof. Sahid Sukamdani Gitosardjono and his wife Juliah Sukamdani. The Sahid Group consists of four divisions, namely Business and Welfare Division, Education, Culture and Religious Division, Health, Social, and Community Division, Integrated Welfare Business Division of Padepokan Sahid Wisata Gunung Menyan.

On the occasion, the Sahid Group launched several projects, namely Sahid Bintan Beach Resort, renovation of Grand Sahid Jaya Hotel, and signed management cooperation with Griydadi Esperansa Bekasi, and Sahid deGreen Anyer.

Jababeka, Plaza Indonesia to Build Multipurpose Area TPP/Achmad Iqbal

PT Graha Buana Cikarang and PT Plaza Indonesia Realty Tbk (PLIN) are developing a mixed used development project in Kota Jababeka, Cikarang.

President Commissioner of PT Graha Buana Cikarang Tanto Kurniawan said the area will be developed as a business center, covering shopping centers, a convention hall, a star-rated hotel, apartments and offices covering a total area of 16 hectares.

The ground-breaking development of the project will be done next year.

“In the Jababeka Residence, there are around 10 thousand expatriates, and it is expected there will be more expats in the whole area. With them as one of our target markets, we’re optimistic about the progress of this

project,” said Tanto Kurniawan.

Tanto said the new project is in the stage of doing a feasibility study and market study to determine the area of buildings and size of investment. He said in the coming months, both companies will get a broader picture of the areas to be developed.

Tanto added both companies have proposed capital expenditure not only for one but for several projects. Besides a mixed used development project, he said, they will also develop several apartments in October 2013.

To realize these projects, both companies agreed to form two new joint venture companies namely PT Plaza Indonesia Jababeka Realty and PT Jababeka Plaza Indonesia Realty.

Two President Towers Set to Accommodate PresUniv Students TPP/Rians Rivco

President University and PT Graha Buana Cikarang are building student dormitories called President Tower to accommodate all students of President University.

“We have a student housing but it is already full since it accommodates 1,500 students. As such thousands of our students have to stay outside,” said Chairman of President University Education Foundation Ermaya Suradinata at the MoU signing with PT Graha Buana Cikarang, at Menara Batavia.

The two 15-storey apartment

towers are to be built in October 2013 and will be completed by the end of 2014 with an investment of Rp 200 billion. The apartments are expected to be available to students at the beginning of 2015.

One tower is sold to President University Education Foundation, which is located in Kota Jababeka, Cikarang, with a total of 420 rooms.

The rent fees vary, starting from Rp 50 million for scholarship recipients to Rp 200 million for those who are more affordable.

LEFT TO RIGHT: Chandra Setiawan Rector of President University, Chairman of President University Education Foundation Ermaya Suradinata, Operational Director of PT Graha Buana Cikarang Sutedja Darmono, and President Commissioner of PT Graha Buana Cikarang Tanto Kurniawan.

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LIVING

SECTION C June 2013 Vol 2. No. 6 www.thepresidentpost.com

Don’t Just Sit There. Really. kaynegallery.com

“Prolonged sitting is not what nature intended for us,” says Dr. Camelia Davtyan, clinical professor of medicine and director of women’s health at the UCLA Comprehensive Health Program.

“The chair is out to kill us,” says James Levine, an endocrinologist at the Mayo Graduate School of Medicine.

M

ost of us have years of sitting experience, consider ourselves quite good at it and would swear that nature intended us to do it as much as possible. But unfortunately, a good deal of data suggest that we’re off our rockers to spend so much time on our rockers — as well as the vast variety of other seats where we’re fond of parking our duffs. Here’s a sampling of what scientists have learned about the insidious nature of sitting.

Repurposing gone awry

The human body was designed for walking, and people did a whole lot of that for millenniums. But lately, not so much.

In general, scientists believe, Americans now sit for more than half of their waking hours. Sadly, the sitting position exerts forces on the body that it’s not built to accommodate, Davtyan says, and so, as comfy as it may seem, couch potato-hood can lead to a host of woes, including poor circulation and assorted aches and pains.

Obe-sit-y epidemic?

We’re not using much energy when we’re sitting still, which is no doubt part of its appeal. But, of course, “not using much energy” is just another way of saying “not burning many calories,” which is just another way of saying “watch out for extra pounds.”

“There is debate as to whether it is the chair or the knife and fork that have caused the increase in obesity rates,” Levine writes in a 2012 article. A person with a desk job may burn 300 calories a day at work, he reports, but that same person might burn 2,300 calories a day in a job that requires considerable physical effort.

Assessing the damage

Sitting at your desk for hours

on end, slaving away diligently, can increase your chances of getting a promotion — but also diabetes, heart disease or even an early grave. A study published in the journal Diabetologia in November 2012 analyzed the results of 18 studies with a total of nearly 800,000 participants. When comparing people who spent the most time sitting with those who spent the least time, researchers found increases in the risks of diabetes (112%), cardiovascular events (147%), death from cardiovascular causes (90%) and death from all causes (49%).

“Sitting is the new smoking,” says Anup Kanodia, a physician and researcher at the Center for Personalized Health Care at Ohio State University’s Wexner Medical Center. As evidence, he cites an Australian study published in October 2012 in the British Journal of Sports Medicine that compared the two pastimes. Every hour of TV that people watch, presumably while sitting, cuts about 22 minutes from their life span, the study’s authors calculated. By contrast, it’s estimated that smokers shorten their lives by about 11 minutes per cigarette.

How can this happen? Not only is sitting lousy at calorie burning, it has been shown to suppress the production of an enzyme called lipoprotein lipase, which is essential for turning bad cholesterol into good.

Sitting can also lead to insulin resistance and, therefore, trouble metabolizing sugar. All these strikes against it help to explain, at least in part, its association with heart disease and diabetes.

Is exercise the solution? Suppose you do 100 sit-ups every morning. Can you safely sit back and rest on your laurels the rest of the day? Research says no.

Despite the good it does for you in many ways, exercise is not

a vaccine against the ills of sitting. Once you burn a bunch of calories, they’re gone, of course.

But it doesn’t take long for some of the other beneficial effects of exercise to wear off and the detrimental effects of sitting to set in. For instance, lipase production can go down by 90% within hours, a 2008 study in the journal Diabetes found.

Is there any hope? There are ways of outwitting our penchant for sitting. Levine has a treadmill at his desk that he strolls on all day long. He made his own, but many models are commercially available. Indeed, whole lines of furniture have been developed to facilitate what David Kahl calls “active sitting.”

It can take a while for people to adjust to this new way of sitting, says Kahl, who owns the Ergo Depot in Portland, Ore. “But in the end I haven’t had anybody say, ‘I can’t do it.’”

There are simpler steps to take too — e.g., merely increasing the number of steps you take during the day. But can such small things really make a difference?

A study published last year in Diabetes Care showed you can improve your glucose metabolism with a two-minute walk every 20 minutes.

Considerable anecdotal evidence points in the same direction. True, many — perhaps including you yourself — have done some of their best work while sitting at their desks. “That’s where I shine,” the late writer Robert Benchley once said. But many others have achieved remarkable success while standing up on the job, including Winston Churchill, Charles Dickens, Benjamin Franklin, Ernest Hemingway and Mark Twain. And then there was Einstein, Levine notes: “He was riding a bike when he came up with e = mc².” (latimes.com)

Do You Know What Your Teen is Taking to Study So Hard?

By the end of high school, 12% of teens say they have taken a stimulant medication for reasons other than to treat attention-deficit hyperactivity disorder (ADHD). But parents, including many of those whose kids are taking ADHD drugs in a bid to boost their academic performance, appear to be clueless.

Among parents whose kids have not been prescribed ADHD medication, a University of Michigan study found, only 1% said they believed their child had used prescription stimulant medication – including Ritalin, Adderall and Vyvanse – as a study drug.

University of Michigan pediatrician Dr. Matthew Davis calls the gap between student behavior and parental suspicion a “big mismatch.” Parental concern about such drug abuse appears to run pretty high: 54% of white parents, 38% of African American parents and 37% of Latino parents said they were “very concerned” about illicit study drug use among adolescents in their communities. But only 27% said they had talked to their kids about study drugs.

It could be a dangerous mismatch as well, said Davis, director of the C.S. Mott Children’s

These prescription medications are drugs, and teens who use them without a prescription are taking a serious risk with their health.”

Hospital’s National Poll on Children’s Health: Use of stimulant medication by children without ADHD can lead to acute exhaustion, abnormal heart rhythms, and – if an adolescent becomes addicted and goes into withdrawal – to confusion and psychosis. And, for the record, adds Davis, there is no evidence that for children without an ADHD diagnosis, taking a prescription stimulant medication improves academic performance.

Parents polled by C.S. Mott were keen on the idea that schools should talk to students about the dangers of using study drugs – 76% said school officials should address those dangers.

And 79% said that kids with an ADHD diagnosis who take such medications should be required to keep their pills in a secure location such as a nurse’s office – a measure that might reduce their ready availability.

Davis says that surveys find that the use of stimulant medication as a study drug is concentrated heavily among white children, and is far less prevalent among Latino or African American kids. This, he acknowledges, may be a problem of affluent and academically ambitious communities, and parents may have many reasons for not recognizing the possibility that their kids might be using.

These parents, he says, “may see prescription drugs differently than illicit drugs that people buy on the street.” And that failure to see stimulant abuse for the illicit drug use that it is, he says, is dangerous. “We know teens may be sharing drugs or spreading the word that these medications can give their grades a boost,” said Davis. But the bottom line, he says, is that “these prescription medications are drugs, and teens who use them without a prescription are taking a serious risk with their health.” (latimes.com)

When comparing people who spent the most time sitting with those who spent the least time, researchers found increases in the risks of diabetes (112%), cardiovascularevents (147%), death from cardiovascular causes (90%) and death from all causes (49%).

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Health

Set a Goal But Didn’t Follow Through?

Tips to Resetting Habits teacherzen.com

OK, you’ve had nearly a third of the year. Lost that weight? Smoking a thing of the past?

Nicer to your husband? If you are like many people, such resolutions have disappeared as completely as the bubbles in your Champagne toast. But you can start again.

W

e all have habits that we could stand to break.

But desire isn’t everything, and it can be difficult to know where to start and frustrating to carry on through setbacks, temptation and outright failure. Still, in order to live healthful and productive lives, many of us need to make changes. Experts range in their opinions about the proper way to confront bad habits, but all agree that it can be done.

Jordan Goldberg is co-founder and chief executive of the website stickK.com. The site, he says, is based on the premise that people are motivated to break old habits through their wallet and their social circles. “Money and friends can influence behavior change,” he says.

Once a goal is set — be it losing weight or saving money, for instance — the goal-setter can place wagers on whether he will accomplish it. He can also opt to give money to charity if he reaches a certain objective or — in a kind of reverse motivation — to have money donated to a charity that supports a cause that he disagrees with if he fails. This,

Goldberg says, is the site’s most popular motivational option.

“Money is a great motivator; everybody has a price at which they are willing to change their behavior,” Goldberg says. “For example, if you’ve got $50 on the line each week to lose a pound and you’d like a $5 cheeseburger, that now costs you $55 if you don’t make your weight that week.”

He notes that getting positive feedback from friends as well as being held accountable for your behavior by reporting it in the public domain is a huge motivator for many people.

Amber Rosenberg, a life coach based in San Francisco, adds that even having a support system through Facebook or Twitter can help you reach your goals. “Saying your goal out loud or even via social media creates outside accountability and increases your success rate,” she said via email.

In trying to break bad habits, many people encounter a tendency to bite off more than they can chew, then get overwhelmed, Rosenberg said via email. She suggests focusing instead on small steps.

“If you’re trying to stop overeating, for example, your end goal may be losing 20 pounds or fitting into your skinny jeans,” she said. “It’s much more realistic, however, to focus on … replacing one cookie in the afternoon with a healthier alternative like a piece of fruit or a handful of baby carrots.” These small steps can be difficult to achieve, though, and little failures might result in wanting to quit. Try to keep that mind-set at bay, Rosenberg says.

Saying your goal out loud or even via social media creates outside accountability and increases your success rate.”

– Amber Rosenberg, a life coach based in San Francisco

In order to truly break bad habits, says Joe Dispenza, an expert in neuroscience and the author of “Breaking the Habit of Being Yourself: How to Lose Your Mind and Create a New One,” it’s necessary to become conscious of self-defeating thoughts, make plans for actions that will help you reach your goal (i.e. eat a salad instead of fast food) and to set 15 to 20 minutes aside each day to focus on what you’re going to change that day.

“When you begin to plan your behaviors mentally, to rehearse your thoughts and how it would feel to be that new person you want to be,” Dispenza says, “you are turning on new circuits in your brain and causing them to fire in new sequences. Your mental rehearsal changes the brain and body to look like the experience has already happened, and you are living in the new future.”

This concept is based on the notion that behaviors and bad habits are based in brain pat-

terns that have solidified over time but that with enough focus and determination can be altered. “Once you become conscious” of your negative thought and behavior patterns, Dispenza says, “now you have control over them, now you have dominion.”

What’s difficult, he notes, is that breaking old habits means an uncertain future, and that uncertainty induces fear. When fear pops up, he suggests focusing on the way you envision your new life and taking that moment to reaffirm the person you want to be. “Embrace fear or insecurity,” he said. “On the other side of your fear is courage. On the other side of insecurity is greatness. On the other side of anger is compassion.”

Experts in the field of behavior agree that change does not happen overnight; there are small steps involved, and each small step must be done consciously. For instance, notes Dispenza, before launching into a diet or exercise regimen, you must know why you’re doing it, be it for good health or simply to fit into an old pair of jeans.

Rosenberg adds that it’s important to recognize the amount of time involved in breaking habits. “On average, it takes 21 days to create a new habit,” she said.

“When you first get started, it will take more time and energy to focus on your daily goal. After about three solid weeks of working on your daily goals, they’ll become second nature and part of your daily routine.” (latimes.com)

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June 2013 Vol.2 No. 6

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Tourism

Beijing, Bandung to Promote Cooperation in Tourism kemlu.go.id

The two cities also agreed to jointly undertake tourism research and exchange of information.

T

he city administrations of Bandung and Beijing have agreed to expand cooperation between the two cities in tourism promotion .

The agreement was marked with the signing of a memorandum of understanding here on Monday night.

Dience Herlina Permana, the secretary of the Bandung city tourism and culture service, said more Chinese tourists have visited Indonesia from year to year. The increase in the number of Chinese visitors to Indonesia has been in line with the

rapid expansion of economic cooperation between the two countries, Dience.

However, the Chinese visitors are still far smaller in number compared with those from Malaysia, Singapore, Japan and Australia, she said. The cooperation, therefore, is expected to result in an increase in the number of Chinese tourists visiting Indonesia including Bandung and vice versa, Dience said.

Nicolas Lumanau, chairman of the Bandung Promotion Agency, said the two countries share a long history and the cultures of the two countries have a strong

influence on each other.

Nicolas said most Chinese may remember that Bandung was the city where the historic Asia Africa Conference was held in 1955 attended by then Prime Minister Zhou En Lai together with other leaders of the emerging Asia and African countries. Until now the building that housed the conference is still well preserved, he said.

Many reasons why tourism cooperation needs to be expanded between the two countries, he said, citing the cultural varieties that influenced each other.

Deputy chairman of Bei-

We want to make East Nusa Tenggara a new world tourism destination, and that the Sail Komodo 2013 will be a good momentum for us to reach our desire.”

H.A. Haris, The head of promotion at the Department of Tourism and Creative Economy

tries they can tell to their families and relatives,” Haris said.

He also called on the people of East Nusa Tenggara to welcome the event participants with friendly and generous behavior so that they can enjoy the natural beauty, cultural attractions, and tourist attractions in the province.

Meanwhile, Coordinating Minister for People`s Welfare Agung Laksono has said Sail Komodo 2013 would help boost tourism in East Nusa Tenggara, and popularize Komodo island to attract both domestic and foreign tourists to visit.

“Sail Komodo is scheduled to take place in September 2013 and therefore we will continue to promote and advertise the event so that it can become known internationally,” Agung said, adding that with the event, Komodo Island could become a popular international tourist attraction.

The minister said the local people have been trained to make handicraft souvenirs ahead of ahead of Sail Komodo to help increase their earnings.

Agung said the development of appropriate infrastructure facilities was currently taking place to support the international marine event that could have a positive impact on the local people.

Therefore, Rote Ndao district government and its people are now enthusiastically ready to welcome the implementation of Sail Komodo. “We are ready to welcome the international marine event of Sail Komodo but unfortunately we lack funds to

Beijing and Bandung have different characteristics both with varying cultures, therefore, the two cities would have more to give and take from cooperation,

The agreement was marked with the signing of a memorandum of understanding here on Monday night. The cooperation is expected to result in an increase in the number of Chinese tourists visiting Indonesia including Bandung and vice versa. he said.

The five-year cooperation agreement in tourism promo-

tion and marketing could be extended depending on the two cities, he said. The two cities also

agreed to jointly undertake tourism research and exchange of information.

Govt Opens Foreign Investment In Tourism Sector: Minister

Sail Komodo Has Long-term Advantages The much awaited international marine event of Sail Komodo 2013 will have long term advantages for the people of East Nusa Tenggara province.

Expected to help improve the welfare of the local people in a long term basis, the annual event will also boost the tourism in East Nusa Tenggara, particularly in Komodo island.

“The result and benefit of Sail Komodo 2013 will not be directly enjoyed by the people in the province because it has long term advantages,” the head of promotion at the Department of Tourism and Creative Economy, H.A. Haris, said in Kupang on Wednesday. According to him, the result of the event would only be perceptible after its implementation.

Sail Komodo, an annual international marine event will take place in September in Labuan Bajo, West Manggarai, and is part of the government`s efforts to promote East Nusa Tenggara as a world tourist destination.

Haris noted that the most important benefit of Sail Komodo was that the participants of the international marine event would become a funnel to promote various tourism potentials in the province upon returning to their respective countries.

Thus, all the tourism potentials in East Nusa Tenggara will be transit points for tourists from many countries around the world. “We want to make East Nusa Tenggara a new world tourism destination, and that the Sail Komodo 2013 will be a good momentum for us to reach our desire,” Haris said.

Therefore, on various occasions he continues to encourage the East Nusa Tenggara regional government and its people to ensure the sense of safety, security, and good impression for the Sail Komodo participants who will visit 21 districts/towns in the province in August 2013.

“Good impression must be instilled into the participants of Sail Komodo so that when they return to their respective coun-

jing Promotion Agency Yu Depin said Beijing has become the world`s tourist destination for 3,000 years although it was only 860 years as the Chinese capital city.

Yu Depin predicted in the next five years there would be 400 million Chinese tourists visiting foreign countries opening the possibility for Indonesia including Bandung to take advantage of the opportunity.

manage the locations that will be visited by the event participants,” Rote Ndao District Head Leonard Haning said in Kupang recently.

He noted that tourism sector in Rote Ndao should continue to be improved in order to be as competitive as those of other districts in East Nusa Tenggara. “Sail Komodo 2013 will be an important event because its participants from around 129 countries are going to visit many districts in the province,” Haning said.

He added that all districts and towns in East Nusa Tenggara had been ready to welcome the event and to make it a great success. “Rote Ndao is one of the destinations for the Sail Komodo participants,” Haning went on.

Meanwhile, East Nusa Tenggara Governor Frans Lebu Raya has asked the Rote Nadao district government and its people to fully support the success of the upcoming international marine event.

Governor Lebu Raya said in Kupang recently that the Rote Ndao people should support Sail Komodo by being friendly to the event`s participants, in addition to providing them with the facilities they will need. “I ask the Rote Ndao district government and its people to support the event that will be based in Labuan Bajo, West Manggarai district, and to make it a success,” Lebu Raya said.

The governor said the participants of Sail Komodo would stop at Rote Island to enjoy the beauty of Nembrala beach which used to be the location of world surfing event. Besides, they also want to see traditional Sasando music performance in Rote Ndao.

“Be friendly to Sail Komodo participants and provide them with whatever facility they want so that they can feel at home and stay longer in Rote Ndao,” the governor said, adding that the longer the sail participants stay, the greater advantage the local people will have. sailkomodo.or.id

Sail Komodo, an annual international marine event will take place in September in Labuan Bajo, West Manggarai, and is part of the government`s efforts to promote East Nusa Tenggara as a world tourist destination.

Mari Elka Pangestu

The government is opening opportunities to foreign investors to invest in the country`s tourism sector, Tourism and Creative Economy Minister Mari Elka Pangestu said.

“We are very open to foreign nationals to invest in the tourism sector,” she said at a press conference here on Tuesday.

She said foreign investors are allowed to hold a 100 percent

stake in three-star hotels and above, tourist resort, golf court, convention hall, and worldclass hotel, among others. Foreign ownership of other business must not exceed 50 percent, she said. No investment in gambling den and casino is allowed in the country, she added.

Data released by the ministry`s economic impact team show the tourism sector employed 9.28 million people in the country last year and contributed Rp104.5 trillion to the state income. The

tourism sector contributed 3.9 percent or Rp321.57 trillion to the gross domestic product and Rp11.57 trillion to tax receipts.

According to the Investment Coordinating Board (BKPM), investment in the tourism sector jumped 210.86 percent to $869.8 million in 2012 from a year earlier, consisting of domestic investment worth $101.5 billion and foreign investment worth $786.3 million.

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Travel

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he Nias people are not only skillful in stone jumping and in performing the war dance; they are also skillful in processing natural materials into high value handicraft. One of the houses in the village sold souvenirs such as wooden handicrafts in the form of household utensils, farming tools, crafted statues and war equipment. But what interested me the most was the local Nias sword, which is a combination of steel and crafted wood and decorated by pig tusk at the handle. The pig’s tusk is formed like a ball to protect the hand of the holder from being wounded by the enemy’s sword.

Another unique item that I found was Kalabubu, which protects the neck and made from a coconut shell into a necklace.

Kalabubu is used as a shield against the enemy’s attacks that aimed to the neck. Almost all men in Bawomataluo village had the skill to craft wood because the skill is passed on from one generation to another.

Right now, wooden crafts are the most favorite souvenirs for tourists, especially foreign tourists.

Wooden crafts are quite expensive. A wooden sword could cost one million rupiah.

Not far from the Bawomataluo village, there’s a hidden paradise where there is a river of 12 stages. I had to walk through the forest for about an hour to reach the river. Bushes have started to cover the path that headed towards the site and thus making it difficult to see the exact track to the river.

Fortunately, our guide was quite familiar with the area and managed to get us out of the forest. Shortly later we could hear the sound of water from the river. The sound of the water was like heaven for our exhausted legs. And within minutes, we could enjoy the full view of the 12-stage river. It was called a 12-stage river because it has 12 stages of mini waterfalls of about 4-5 meters high and every stage has its own lake. The clear green water is so fresh and the green plants that surrounded it served

as a canopy to shield us from the sun. The surrounding area was so natural as if it had never been touched by human hands. You could find no litter around here.

The local people believed that in the old days the lakes were used as a place to punish the people who violated the common law. The seventh lake was said to be the place to drown people who committed a serious violation. The lakes not only offered a story of horror but there is also a myth which said that one would soon find their love after swimming in the fourth lake. The sixth lake is the safest place to swim and to jump from above because it was quite deep. The cool fresh water was in contrast with the heat of the day. The sixth lake was relatively bigger than other lakes because it was about 40 square meters wide.

The water was green because green weeds grew at the bottom of the lake.

You could also see small shrimps playing between the stones. Nias is also a haven for world surfers. One of the most popular surfing places is located in the Sorake beach in Botohilitano village, Teluk Dalam subdistrict, South Nias district. Although the location was rather isolated, there are a lot of homestay along the beach which are usually occupied by foreign surfers.

Sorake faces straight to the Indonesian Ocean and that’s why the waves could reach 3-5 meters high and are also never unaffected by the tides. From a distance I could see several foreigners showing their skills on the surfing boards. Local children ran joyfully as they carried their surfing boards. The waves rolled bigger as they approached the beach and shortly later the children were already surfing on the water to catch the waves and laughing together as they enjoyed the sea.

It was amazing to see those children surfing and how skillful they are in maintaining their balance amid the big waves.

They looked exactly like professional surfers.

Beautiful Nias Nias is an island on the Indian Ocean which offers plenty of beauty and charms. Its unique and rich culture has drawn many tourists to the island. Bawomataluwo is a tourism village which often stages and displays local cultural richness such as the famous stone jumping or Fahombo and the traditional Maluaya war dance. The village is one of the most favorite places for tourists who are eager to learn about and to see Nias’ culture first hand.

Text: Iqbal Alaik Photos: Vannico, Alaik

NIAS SWORD. A combination of steel and crafted wood and decorated by pig tusk at the handle. The pig’s tusk is formed like a ball to protect the hand of the holder from being wounded by the enemy’s sword.

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June 2013 Vol.2 No. 6

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Culture

First Lady Hopes Kolintang Music Remains in Existence presidenri.go.id/Laily

Kolintang is bamboo music that traditionally originates from the Minahasa people in North Sulawesi Province.

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irst Lady Ani Yudhoyono has expressed her hope that Kolintang music, the Indonesian traditional music heritage, could be further developed so it will always exist in Indonesia and global society.

“Kolintang is an Indonesian heritage. We should keep it everlasting,” Ani Yudhoyono said in State Palace here on Tuesday before members of the executive board of the United National Kolintang Society (Pinkan).

Kolintang is bamboo music that traditionally originates from the Minahasa people in North Sulawesi Province.

She urged the Indonesian to develop and not to forget Kolintang music so it will not be claimed by other countries as their heritage and culture. Several Indonesian cultural heritages which had been claimed by other countries, included Batik

Sometimes we are infuriated if our culture is claimed by others as theirs.

We can anticipate it by our effort to perpetuate all of Indonesian cultural heritages.”

Ani Yudhoyono

linen, Pendet dance, and Rasa Sayange song.

“Sometimes we are infuriated if our culture is claimed by others as theirs. We can anticipate it by our effort to perpetuate all

of Indonesian cultural heritages,” she said.

Meanwhile, Anie Rachmat Sudibjo, the general chairperson of Pinkan, which was established in 2011, said her organization is still on the way to promote Kolintang among Indonesian and global society. For that purpose, Pinkan organized the Kolintang seminar and contest for the students and public in Minahasa, North Sulawesi Province, as the place birth of Kolintang.

Anie Rachmat Sudibjo said Pinkan has been promoting Kolintang in all over Indonesia.

On the occasion, the First Lady also received the visit of Nandayu Kolintang music group, the winner of First Lady Ani Yudhoyono Kolintang Cup. Some official’s wives also attended like Okeu Hatta Rajasa, Tresna Jero Wacik and Mrs Purnomo Yusgiantoro.

The First Lady received the visit of the executive board of the United National Kolintang Society (Pinkan).

Budget for Culture Not Cut: Minister Chief Economic Minister Hatta Rajasa said the government would not cut the Education and Culture Ministry`s budget as part of its plan to reduce ministries` swelling expenditures.

“The biggest budget cuts will take place in 15 other ministries whose budget are big, except the ministry of education and culture because the law has regulated that education and culture ministry`s budget could reach 20 percent of the total state budget,” Hatta said before attending a coordination meeting on ministry budget cut here on Wednesday.

The minister said that the

Hatta Rajasa plan to reduce ministries` budget would be carried out to stop increasing budget deficit and unnecessary expenditure on official trips and building constructions.

He said that the cut would be

carried out proportional to the allocation of the ministries` budget for their work plan and goods and service procurement plan.

“We will proportionally assess the ministries` budget based on the value of their work plan. We will not see only the amount of the budget but also their work plans,” the chief economic minister said.

In the meantime, National Development Planning Minister/ Head of the National Development Planning Agency (Bappenas) Armida Alisjahbana said the budget cut would be carried out to preserve the country`s fiscal resilience and to make ex-

penditure more efficient.

“Of course this is something difficult. Because we are now in the month of May when we have to see what parts of the budget that really needs to be cut so that it would not disturb work target,” Minister Armida said.

Armida ascertained that the budget that would be cut included that for non operational expenditure whose implementation was still delayed and whose cut would not disturb development.

“Of course each ministry will have different budget cut with that of others. Their budget could not be cut equally,” she said.

Saman Dance Stuns Paris

Batak Ulos Marketed to Europe, US Ulos, a traditional Batak cultural fabric in northern Sumatra, is not only marketed domestically but also internationally to Europe and the United States.

Chairman of the Ulos Batak Weaving and Ulos Batik Craftsmen Association Robert MT Sianipar said here on Tuesday that the traditional Ulos fabric is not only favored by Batak communities but also by foreigners.

The fact has shown that Ulos craftsmen receive increasing orders from several countries such as Russia, Switzerland, the Netherlands, the United States, Australia, Singapore and Malaysia. “Exports are not yet in bulk and depending on orders, but it does make us proud,” he said.

In marketing their products to Europe and the United States and other countries in Asia, Robert said that there are no special promotions conducted, but only through information from old friends.

In marketing their products to Europe and the United States and other countries in Asia, Robert said that there are no special promotions conducted, but only through information from old friends.

The public in Paris were mesmerized by the Saman dance performance during the “Smile Indonesia” cultural program at the embassy cultural hall.

He noted that the Smile Indonesia cultural program, which lasted from morning until late at night, was enlivened not only by the Saman dance but also by other cultural performances.

The event was opened with Pandet dance and then followed with Janger dance, Baris dance, Legong Keraton dance, Suraba-

ya Sparkling dance, and Kecapi and Angklung musical performances.

The embassy`s Deputy Chief Representative Asharyadi said the event, organized by Indonesian Students Association in France, was an important part of diplomatic mission.

“Cultural interaction among the students of Indonesia and

French community during their study in France is beneficial to introduce Indonesia to a larger community,” he said.

The event was attended by among others Indonesian community in France, students of other countries such as Russia, Rumania, Cameroon, and representatives of some campuses in France.

More Indian Tourists Come To Bali to Study Local Culture More tourists from India are coming to Bali to enjoy Hindu art and cultural activities on the island. A local tourism observer, Tjokorda Gede Agung, said here on Tuesday that Hindu culture has been one of the factors that has attracted tourists from India, which is a Hindu coun-

try, to the island. “Naturally they wish to know similarities in the Indian Hindu culture in Bali,” he said.

A total of 18,410 tourists from India visited Bali from January to April this year, an increase of 27.10 percent from the same period last year.

Gede Agung hoped the number would continue to increase following intensive promotion efforts by the Bali provincial government. He said increasing holy tours from Bali to India has also helped promote Bali as an attractive destination for Indian tourists.

Gede Agung said that the emergence of Indian cultural centers in Bali such as “Yoga” centers with their trainers from India automatically would also promote Bali in India as the trainers would certainly tell about Bali when they returned to their country.

Robert said that he started the Ulos fabric business in early 1989 for local markets such as in Medan, where his parents happened to run their business there.

In 1992, a Singapore citizen was interested in his Ulos products, and then bought a few pieces as souvenirs. “That was the beginning of my Ulos trade business that still lasts until now. These Ulos are all done using a traditional loom,” he said. antarasumut.com

generasibaru.nl

Saman dance performance from Aceh Province stunned Paris community at the Indonesian Embassy cultural hall in Paris on Sunday night.

Organizing committee chairman Fadil told ANTARA News here on Monday that the public in Paris were mesmerized by the Saman dance performance during the “Smile Indonesia” cultural program at the embassy cultural hall.

Fadil said the Smile Indonesia cultural program was divided into two sessions to introduce the audience with the wealth of art and culture of Indonesia. “We did our best to entertain the audience with variety of our art, culture and hospitality to make them love every moment of it,” Fadil said.

Meanwhile, the embassy`s education and culture attache Syafsir Akhlus said Indonesian students abroad were Indonesia cultural ambassadors to promote their art and culture in the countries where they were studying.

“The event is relevant to raise our homeland cultural treasures,” Syafsir said, adding that the Saman dance was performed by eight Indonesian students to close the event.

“We have some old friends there staying in those countries as our marketers. Initially the efforts experienced trial and error, but the prospects look pretty good, until now it is still going well,” he said.

Ulos craftsmen receive increasing orders from several countries such as Russia, Switzerland, the Netherlands, the United States, Australia, Singapore and Malaysia.

Linguist Hails Nation’s Diverse Languages The language diversity in this country will serve as an adhesive to strengthen the Unitary Republic of Indonesia, says Prof Dr Mahsun MS at a national linguistic coordination meeting here recently, “but only if they are managed properly.”

He praised the people of Southeast Sulawesi which has 19 local languages and 172 dialects for being able to co-exist peacefully.

More than 700 living languages are spoken in Indonesia. The official language is Bahasa Indonesia, used in commerce, administration, education and the media.

However, he noted, the diverse languages spoken in

More than 700 living languages are spoken in Indonesia. The official language is Bahasa Indonesia, used in commerce, administration, education and the media.

Indonesia have given the greatest contributions to a number of conflicts in this sprawling archipelago, a linguist said.

“A number of conflicts in several parts of Indonesia, such as West Nusa Tenggara and Papua happened merely because of different languages,” Mahsun said.

The people living in the areas feel

they are different from other residents in the country only because they speak different dialects, he said.

As a matter of fact, the founders of this republic have unified the diverse ethnic groups, cultures and religions into the Unitary Republic of Indonesia with the Indonesian language as a unifying language, he said.

Therefore, he added language bodies across the country should be careful in managing the language diversity so that the diverse languages will serve as an adhesive to unify the diverse ethnic groups within the Unitary Republic of Indonesia.

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Automotive

Nissan All-New Grand Livina: Suitable MPV for Indonesian Families PT. Nissan Motor Indonesia (NMI) secara resmi meluncurkan All-New Nissan Grand Livina. Sejak diluncurkan pada tahun 2007 lalu, Nissan Grand Livina disambut sangat positif oleh pasar dan berhasil menjadi salah satu kendaraan MPV idaman keluarga Indonesia.

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he Nissan All-New Grand Livina is enforced with HR15DE new engine and CVT transmission. All-New Nissan Grand Livina comes in two variants: the All-New Nissan Grand Livina and the All-New Nissan Grand Livina X-Gear.

New grille design view on the AllNew Grand Livina exudes vivacious impression in timelessly elegant design, while the Grand Livina X-Gear, with a sporty look carrying the dynamic urban character and suitable for Indonesian families.

Yoshiya Horigome, Vice President Sales & Marketing of Nissan Motor Indonesia, said the All-New Nissan Grand Livina is very suitable for modern families who wish to have a vehicle with high level of comfort, exterior display that presents the impression of timelessly elegant, luxurious interior design, sedanlike Comfort, Good Fuel Economy and Optimum Safety & Security.

The interior features beige leather made very comfortable.

There are no suspension changes on the All New Grand Livina.

From the entertainment sector, it adopts roof monitors for the middle passenger, and the front head unit still uses single DIN models.

The Nissan All-New Grand

Livina is offered in several types, such as the 1.5 SV M/T at Rp 179 million, 1.5 SV CVT Rp 189 million, 1.5 XV M/T Rp 199 million, 1.5 XV CVT Rp 209 million, and 1.5 Highway Star CVT Rp 221 million.

Meanwhile, the Grand Livina X-Gear is also offered in several types, 1.5 X-Gear M/T at Rp 212 million, 1.5 X-Gear CVT Rp 224 million, 1.8 X-Gear M/T Rp 250 million and 1.8 X-Gear A/T Rp 260 million. All types are available in six exclusive colors: Dark Blue Metallic, Dark Red Metallic, Grey Metallic, Diamond Silver Metallic, Solid White and Solid Black.

All-New Nissan Grand Livina diperkuat mesin baru HR15DE dan transmisi CVT, hal ini menjadikan All-New Nissan Grand Livina sebagai MPV pertama dan merupakan satu-satunya di segmennya yang mempersembahkan teknologi tinggi dalam memberikan kenyamanan tinggi di kelasnya.

TPP/Rians Rivco

BMW M Performance Automobile First Launch in Indonesia

TPP/Rians Rivco

Two Luxurious Buses from Mercedes Benz TPP/Heros Barasakti

TPP/Rians Rivco

BMW Indonesia has launched its new BMW M135i, the first BMW M Performance Automobile in the market. Ramesh Divyanathan, President Director of BMW Group Indonesia, said that the new BMW M135i is the first BMW M Performance Automobile for the compact premium segment in Indonesia. It offers an ideal symbiosis of outstanding performance and everyday suitability The sporty and elegant design of the new three-door model conveys the typical qualities of BMW Performance Automobiles to yet another vehicle segment.

Moreover, the characteristic handling precision of BMW M Performance automobiles is obtained through the model-specific M Adaptive suspension technology that includes an M Sports Braking system and Variable Sport Steering and is perfectly adapted to match the supreme road performance. 18inch M light alloys with a double spoke design additionally complement the M135i’s sporting character.

The model features 3-litre straight six-cylinder petrol engine with M Performance TwinPower Turbo technology packed with 320 hp and 450 Nm of torque from 1,300 to 4,500 rpm, along with its typical M precision-engineered and high-performance chassis, not to mention the optimised aerodynamics of the body style and an exclusive interior design. Thanks to the eight-speed Sports automatic transmission, the BMW M135i catapults from 0 to 100 km/h in just 4,9 seconds and reaches a top speed of 250 km/h – the top limit permitted by the vehicle’s electronic speed control system.

The BMW M135i’s exterior mirror caps in Ferric Grey and side window surrounds in BMW Individual High Gloss Shadow Line are a further feature of BMW M Performance automobiles.

Viewed from the side, the car’s athletic, low-slung appearance and its nearness to the road are even more intensely expressed

by an entirely horizontal contour line in the area of the doorsills.

The wide doors are a further characteristic feature of the BMW M135i’s body design. Together with the rear side windows, the frameless windows form a coherent window surface reaching back to the rear end, accentuating the body’s dynamically stretched appearance.

Thanks to the eight-speed Sports automatic transmission, the BMW M135i catapults from 0 to 100 km/h in just 4,9 seconds and reaches a top speed of 250 km/h.

The interior details include exclusive Dakota leather upholstery, an M leather steering wheel with multifunction buttons and blue accent stitching, the BMW Individual roofliner in Anthracite, interior trim in Aluminium Hexagon with matt Estoril Blue or high-gloss black accent lines, gear selector and handbrake with leather gaiters, speedometer and rev counter with red chronoscales.

The colour of the interior lighting is variable, and the car key features blue detailing.

In addition, the new BMW M135i is standard equipped with BMW Navigation System Professional, including Indonesia maps and 3D view, Bluetooth connectivity and BMW HiFi sound system (205 Watt). BMW M135i is priced at Rp 888 million.

Mercedes-Benz Indonesia sets new standard in the luxury commercial vehicle market with the launch of Sprinter minibus and Chassis Bus O 500 R 1836.

The launch event took place in the Mercedes-Benz factory Wanaherang Indonesia in Bogor, West Java on Monday, June 3.

Both of these vehicles are here to meet increasing market demand of luxury buses with safety features and comfort. These vehicles also bring benefits to bus operators because of the economic value in terms of operation and maintenance.

“Currently, the market is growing rapidly and competitively, bus operators are also required to offer passengers a vehicle that is not only luxurious and comfortable, but also safe,” said Dr. Claus Weidner, President & CEO of Mercedes-Benz Indonesia at the launching.

He added, this Sprinter minibus is suitable for

travelers’ luxury transportation, hotel, airport transfers, school transportation and personal use.

Olaf Petersen, Director of Sales of Commercial Vehicles, explained, “The Sprinter minibus, with a monocoque-based design, is very different from other truck-based chassis. The design makes the Sprinter lighter, which means saving fuel consumption, more stable for passengers, and provide better anti-corrosion protection because it uses paint with dye system (KTL), thus reducing the maintenance cost.”

He added, “Sprinter is powered by diesel engine power with high torque reaches 150hp and 330 Nm, thus allowing vehicles to easily reach maximum speed to carry passengers to their destinations safely and more quickly.”

With three versions of A2 (14 seats), A3 (20 seats) and A4 (22 seats), the minibus Sprinter offers convenience, among others lower foothold, automatic sliding doors, 1.9 m interior height, comfortable seats and sound

system.

The selling price of these three versions are A2 (14 seats) Rp 809 million, A3 (20 seats) Rp 799 million A4 (22 seats) Rp 845 million Meanwhile Chassis Bus O 500 R 1836 also represents a breakthrough in its segment, due to 12 L engine that allows the bus to climb hills without reducing movement speed (gear) significantly.

The bus has an engine torque of 1,7560 Nm and is also equipped with Voith retarder technology that significantly reduces brake operating services to 85 percent. As such, it also increases the lifespan of brake linings up to eight times.

O 500 R 1836’s length is 12.8 m, so it has an extra row of seats compared to the 12 m standard bus.

Moreover, because of its design space, this bus offers a spacious luggage for passengers to store stuff. Chassis Bus is priced at Rp 1,039 billion (off the road).

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June 2013 Vol.2 No. 6

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Technology

Samsung Galaxy Note 8: The First Tablet of 8 In. Class Samsung has released an innovative new tablet in the Galaxy Note family. The new variant is named Samsung Galaxy Note 8, the only tablet that measures 8 inches at this time.

Samsung Galaxy Note 8 uses a capacitive touch screen TFT dimension 8 inches which has a resolution of 1280 x 800 pixels 189 ppi with body thickness only 7.95 mm.

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amsung Galaxy Note 8 is a classy mobile tablet which is designed specifically and professionally with plastic as the main composition of its material. This makes the tablet, made by the South Korean company, fairly light at only 338 grams.

For the screen, the Samsung Galaxy Note 8 uses a capacitive touch screen TFT dimension 8 inches which has a resolution of 1280 x 800 pixels 189 ppi with body thickness only 7.95 mm.

Width dimensions of this display make a good balance between the functions of entertainment and productivity. Though big, this gadget offers portability The Samsung Galaxy Note 8 tablet is powered by a 1.6 GHz quad-core processor, ARM Mali 400MP4 GPU and a 2 GB RAM. The Kindle Fire HD 8.9 has the TI OMAP 4470 chipset. It is powered by the 1.5 GHz dual-core Cortex A9 processor and the

PowerVR SGX544 GPU. This tablet has a 1 GB RAM. When it comes to hardware, the Samsung Galaxy Note 8 has a better CPU and RAM. The Kindle Fire HD 8.9 has the PowerVR GPU which is a very powerful GPU. The Samsung Galaxy Note 8 will run on the latest version of Android operating system, the Android 4.1.2 Jelly Bean. It will be available in in-built storage options of 16 and 32 GB. Like all other Samsung smart devices,

the Galaxy Note 8 will have a micro SD card support which will support micro SD cards of up to 64 GB. The Galaxy Note 8 includes a 5 megapixel flashless, autofocus main camera. Mediocre by today’s standards, it still manages to capture 1080p video at 30fps. The front sensor gathers 1.3 megapixels and can capture 720p video. Both support geotagging for photos and videos.

Samsung also includes some

Waze: Helper in Travelling Waze is a combination of navigation applications with social networking and online games.

Waze is a free software navigation for mobile devices and Tablet PCs with GPS. Waze currently supports iOS devices (iPhone/ iPad), Android, Windows Mobile, Symbian and BlackBerry.

With this application, we can share road conditions in real time. Thus when all Waze users report the condition of the road obstacle in real time, the server can calculate the distance from one place to another more accurate as it is based on current road conditions, not on the average speed of vehicles.

The mobile social applications will be very useful if all users are active in reporting the condition of roads. If not then the Waze server will assume that the road conditions are without problems and the condition may not match with the reality.

Contrary to other general navigation software, Waze provides information and maps based on community inputs. Information on accidents and road congestion are reported by users. Waze users, who are also called wazers, can also update maps, the numbering of houses/buildings, marking the location personally and directly.

For example, if we want to go from Cawang to Semanggi, when the road’s condition is normal the duration of the travel can be between 15 to 30 minutes. But when app Waze users report current road conditions, e.g. an accident on the road or other obstacles in the way, the travel time could be longer than 30 minutes or even 60.

Waze also has a chat facility, giving points for every activity such as browsing, updating maps and other special events.

Thus, Waze is a combination of navigation applications with social networking and online games.

This app has features that display the speed of the car we drive, as if the car’s speedometer is in our grasp. This application is also linked to other applications that are quite popular such as Twitter and Foursquare.

Waze can be downloaded from any country in the world, including Indonesia, but as base map for Indonesia is not yet available user contribution is preferred.

Contrary to other general navigation software, Waze provides information and maps based on community inputs.

great pen-optimized software and presents it whenever the SPen is removed from its sheath.

Where appropriate, handwriting is converted to text, numbers into mathematical formulas and rough shapes into perfectly formed ones. Palm rejection software seems to always be running; the stylus operates consistently regardless of where the hand is resting. And Samsung’s pressure sensitive S-pen never requires batteries and brings

a high degree of precision to graphical content creation and editing.

Samsung has added tons of new functionality to TouchWiz, and fine-tuned the multi-win-

dows feature so it’s much easier to use. More apps are now compatible with multi-windowing, and they’re grouped in a new drawer that slides out from the left edge of the screen. To create

a second window, simply drag the app’s icon out of the drawer. Resize the two running apps using the slider that divides the two apps horizontally across the screen. When doing so, a set of buttons temporarily pops up to maximize or quit the current app or flip-flops its position with the other. The 8-inch screen is a good size for viewing and manipulating two apps at once.

The Samsung Galaxy Note 8 is definitely a promising tablet.

It has a very powerful hardware configuration, better camera and runs on the latest Android operating system. It is very light in weight and the dimensions indicate that this tablet is very slim as well.

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Golf

Faldo Series Returning to Suzhou, China nickfaldo.com

Established in 1996, 40 Faldo Series tournaments now take place in 30 countries worldwide with more than 7,000 golfers participating each year.

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he Faldo Series has announced it will return to Taihu International Golf Club in Suzhou, China on July 2-3. The Ladies European Tour venue expects a record field for the sixth Faldo Series Shanghai Championship after hosting the tournament for the first time in 2012.

“We were excited to bring the Faldo Series to Suzhou last year and we look forward to benefitting even more young golfers in 2013,” said Li Chao, General Manager of Taihu International, located 100 kilometres west of Shanghai.

“As home of the Ladies European Tour’s China Suzhou Taihu Open, and now the Faldo Series Shanghai Championship, we are committed to see golf grow in China at all levels.”

Golfers aged 12 to 21 will line up in the 36-hole Shanghai Championship with five places on offer at the eighth Faldo Series Asia Grand Final. Five agecategory winners – three boys and two girls – will join Sir Nick Faldo for the World Amateur Golf Ranking event at Mission Hills Golf Club in Shenzhen next March.

A programme of events will also take place off the course during the Faldo Series at Taihu International, with competitors set to receive expert advice from guest speakers, and younger children from the local community invited to attend a junior coaching camp.

Established in 1996, 40 Faldo Series tournaments now take place in 30 countries worldwide with more than 7,000 golfers participating each year. Past winners include Major Champions Rory McIlroy and Yani Tseng.

In September 2014, Faldo will begin taking students at a fulltime residential academy for education and golf development in America. The first ever Faldo Series Academy in Casa Grande, Arizona is also home to the Faldo Series USA and marks the

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This tournament was held to mark the 486th anniversary of Jakarta. This event also has the potential to be one barometer for the Indonesian Golf Association (PGI) in attracting potential athletes projected to be the national team.

next significant step in the programme’s history.

The 2013/2014 Faldo Series Asia schedule features a record 19 tournaments in 15 countries, including four in mainland China, two in India and others in the Philippines, Chinese Taipei, Cambodia, Vietnam, Hong Kong, Malaysia, Nepal, Singapore, Brunei, Japan, Pakistan, Indonesia and Thailand.

Golfers aged 12 to 21 will line up in the 36-hole Shanghai Championship with five places on offer at the eighth Faldo Series Asia Grand Final. Five agecategory winners – three boys and two girls – will join Sir Nick Faldo for the World Amateur Golf Ranking event at Mission Hills Golf Club in Shenzhen next March.

Enjoy Jakarta World Junior Golf Championship 2013 The Enjoy Jakarta World Junior Golf Championship (EJWJGC) 2013 was held at Damai Indah Golf, Pantai Indah Kapuk, North Jakarta, 4-7 June. Some 138 under-18 golfers from 19 countries took part in this tournament.

This tournament was held to mark the 486th anniversary of Jakarta. This event also has the potential to be one barometer for the Indonesian Golf Association (PGI) in attracting potential athletes projected to be the national team. As a junior golf champi-

onship, there is no prize money in this tournament. Participants instead compete to improve their rankings.

The tournament was dominated by Thai golfers. Sarit Suwannaruit led men A division (15-17 years) with 219 strikes, Puwit Anupansuebsai led men B division (13-14) with 216 strikes, Tanaphon Aphinyawutthikun led men C Division (11-12) with 209 strikes, andPitipat Wit led D division (under 11) with 220 strikes.

The only class that is free

from Thailand’s domination is the Women C Division. The tournament for C and D Division ended a three-day match play. Thailand won three titles, the Men C and D Division and Women D Division. Taiwan won the Women C Division.

Aside from the golf tournament, the organizing committee also held side events to promote Jakarta and its culture, including presenting the traditional Betawi dance, meetings with inspirational figures, including Jakarta Governor Joko Widodo, and a city tour.

Thailand won three titles, the Men C and D Division and Women D Division.

Taiwan won the Women C Division.

Borobudur International Golf & Country Club

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

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

T

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

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

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

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

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

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

www.borobudur-golf.com