The President Post Special Report 01

SPECIAL REPORT / AUGUST 2014

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Luluk Sumiarso: Restoration of Energy Management The government should regulate energy management in order to achieve self-sufficiency in which energy needs can be met from domestic sources. If to this day we still import the energy, it means we have to do a restoration in energy management.

In accordance with the mandate of Article 33 UUD 1945 paragraphs 2 and 3, the state should utilize natural resources for the prosperity of society.

Regarding the energy, the government must manage the available energy sources for the common welfare.

"That is why the government should regulate the energy management," said Luluk Sumiarso, former Director General of Oil and Gas, Ministry of Energy and Natural Resources (EMR) for 2006-2008 period.

According to Luluk, currently Chairman of the International Institute for Clean Energy and Climate Change (IICECC) Indonesia, Indonesia has abundant energy sources. The potential of hydro power could reach 76,000 Mega Watts (MW), while the potential of geothermal is about 79,000 MW. "Indonesia is a geothermal superpower," said the man who was born in Ponorogo, on 11 May 1951.

Unfortunately, Indonesia focuses on fossil fuels as an energy source. In fact, the production and reserves of fossil fuels is steadily declining. Meanwhile, the renewable energy sources have not been worked on well.

Lulu explained that subsidy of fuel oils (BBM) has been misguided. The subsidy should only be given to needy people. But in reality, the fuel subsidy now more widely enjoyed by the middle class who have their private vehicles. "The fuel subsidy is misplaced.

The subsidy has to be for the poor," said the alumnus of Institute of Technology Bandung (ITB), Bandung.

According to Luluk, there is no way to guide the subsidy so that it only reaches the targeted receivers.

When he was serving as Director General of Electricity and Energy Utilization (LPE) 2001-2003 at the Ministry of Energy and Mineral Resources, he ever applied electricity subsidy for disadvantaged groups. "The subsidy is only given to the users of 450 VA electricity meter," said the boss of Javanese traditional performance ‘Ketoprak Puspo Budoyo’.

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They are entitled to the subsidy as the targeted customers, such as those who run social activities (S1 and S2), household (R1), small business (B1) and industry (I1) with installed capacity of 450 VA for electricity consumption up to 60 kwh per month.

By such an exact limitation, the government can reduce the electricity subsidy. "In 2003, the electricity subsidy was only Rp3.5 trillion. Compared to 2006 which reached Rp31.246 trillion," said Luluk, alumni of the University of Pennsylvania, USA, Department of Energy Management and Policy. As it is known, the 2003 Luluk was no longer the Director General of LPE. He was promoted as a Secretary-General of Energy and Mineral Resources Ministry (2003-2006).

When holding the position as Director General of Oil and Gas (2006-2008) at the Ministry of Energy and Mineral Resources, Luluk once proposed a concept which allowed the reduction in subsidy of fuel prices, following the downward trend in world oil prices at that time. He called the concept automatic fuel price cut with the upper limit (HJ-OBA).

"This concept follows the trend of the rising and falling oil prices. That means if the world oil prices fall, the government will lower the price of subsidized fuel," he said. The benchmark price for the domestic fuel refers to the MOPS (Mean of Plats Singapore).

When lowering the prices, the government made it clear to the public that the fuel prices will follow the MOPS. So, if the price of MOPS increased, automatically the fuel prices also rose.

"However, if there was an increase which caused the MOPS benchmark prices above the retail prices, to protect the interests of the public the government set the upper limit of the selling price, ie the prices that correspond to the Presidential Decree No. 55 Year 2005," he said.

The benchmark prices of subsidized fuels are the average prices of MOPS in one month before plus alpha (distribution and margins costs). Meantime the retail prices are set by the president regulation based on the calculation made by the Minister of Energy and Mineral Resources in coordination with Minister for Economic Affairs. "The difference between the benchmark and retail prices would be subsidized by the government," he continued.

Unfortunately, Luluk's proposal was foundered in the middle of the way. Now, the Chairman of the International Institute for Clean Energy and Climate Change proposes a new idea to reduce the fuel subsidy called subsidy rationalization. "What is the concept all about, I will explain later," said Luluk, closing the interview with The President Post in Jakarta, recently. (jok)

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WAHYU HIDAYAT

SOEs Should be Treated Equally State Owned Enterprises (SOEs) are subjected to be obedient to the company-related regulations.

Therefore, the government must treat the SOEs the same like the other companies.

According to Wahyu Hidayat, former Deputy for Restructuring and Strategic Planning of the Ministry of State-Owned Enterprises, SOE is a company not a state institution. "SOEs are separated from the state finance," said Wahyu in an interview with The President Post in Jakarta, Monday (11/8).

The government should also treat SOEs as a company, just like how it treats the private companies. The difference between SOEs and private companies is about their capital. The capital of SOEs comes from the government. "Remember, they are not financed but given a working capital. The government channels or adds the capital," he said. As an investor, the government is entitled to get dividend.

Madani (PNM) as the executor of the implementation of the CSR programs. Thus the companies can focus on the core business and do not need to take care of the fund allocated for activities outside the business.

Moreover, SOEs are not designed to foster micro and small entrepreneurs, so that they do not have the capacity, expertise and management needed by the Micro, Small and Medium Enterprises (SMEs).

He further said that based on his experience managing a number of state-owned companies, the government still treat SOEs differently with the private companies.

In fact, they are both economic players who should generate profit. "Usually the businesses that are less profitable given to the state," added Wahyu who ever became Secretary of State Ministry of SOEs prior to taking up the post of Deputy.

SOEs are the same with the other companies in term of paying taxes. SOEs have to pay the taxes to the state in accordance with the existing laws. SOEs have also to provide Corporate Social Responsibility (CSR) programs to the public.

Wahyu gave an example, when he managed Merpati Airlines and the tsunami disaster in Aceh happened, the government immediately requested Merpati to deliver aids to the earthquake location. He insisted to get the work order signed by the relevant parties. "As a company we're accountable for any spending. We cannot be capricious," added the man who was born in Sidoarjo, on 25 June 1959.

In connection with the CSR, when he was Deputy, Wahyu ever issued a circular letter about the Partnership and Community Development Program. In the circular letter, the Ministry of State Owned Enterprises appointed PT Permodalan Nasional

To improve the performance of state-owned enterprises in Indonesia, Wahyu who is now Commissioner of PT Semen Indonesia said that there are four steps that must be executed by the Ministry of State Owned Enterprises. First, all SOEs should submit the data of

their assets. "The data must be updated every year," he added. Through mapping the assets of SOEs, the government can look at the performance of each SOE and find a solution if it is found obstacles in the field.

Second, forming Talent Pool and Executive Development System (EDS). Each state has a Talent Pool which is a media for prospective leaders of SOEs in the future. "With the talent pool, the practice of backing up a director or a commissioner is expected to be gone," said Wahyu.

The directors of the SOEs will come from inside, except the company cannot fulfill it. SOEs will do the fit and proper tests to the employees who are considered to have the competence to be the future leaders. Furthermore, the employees who pass the tests will be placed in the Talent Pool.

The third is publishing Criteria for Superior Performance Assessment (KPKU) for SOEs. This assessment covers seven aspects of leadership, strategic planning, customer focus, analysis and knowledge management, labor, operations and results of operations.

"The fourth is the application of Remuneration Reward System has to be adjusted," he concluded.

The remuneration system should be reviewed annually to increase the SOEs performance. (jok)

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SPECIAL REPORT / AUGUST 2014

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Jokowi To Streamline His Cabinet In a bid to run an effective government while implementing his populist vision, president-elect Joko “Jokowi” Widodo has come up with a plan to streamline the cabinet. He would reduce the number of ministries from currently 34 to 27 by merging several of them, but also would add some new “specific” posts.

“One of the tasks of the Transition Team is to draft the effective and efficient cabinet structure, best suited for the vision and mission of Jokowi-JK compiled in the Nawacita,” said Andi Widjajanto, a deputy of the Jokowi-Jusuf Kalla transition team, in Jakarta.

Nawacita is the list of nine programs of Jokowi and Kalla to be the focus of their administration in their five years term, comprising among others are empowering agriculture and fisheries, revitalizing traditional markets, rejuvenating the creative economy and improving access for quality education and health services.

Some of the ministries that would be merged included the ministries of trade and industry. The merger plan would also merge similar sectors in a single ministry, like agriculture, fishery, farming and plantation, which would all be handled by a ministry of food security. Included in the plan is also to merge all existing ministerial research and development divisions into one ministry of research and technology.

To realize the pledge about focusing on the maritime sector, Jokowi is also expected to set up a maritime ministry tasked to develop maritime infrastructure, which has been billed as the “sea toll lane”. It would provide regular freight ships to serve cities from east to west.

(source: Indonesian Business Data Center)

Too Fat

The cabinet structure in Indonesia, according to Founder of Indonesian Business Data Center (PDBI) Wibisono Christianto, is still too fat. The total numbers of cabinet in Indonesia, from the president, vice president, ministers, deputy ministers and heads of state institutions is 62.

This number is the third largest in the world after South Africa (71) and Malaysia (64). With the fat structure like this, the government is considered ineffective. The Gross Domestic Product (GDP) per capita of Indonesia in 2013 was ranked 22nd, while Malyasia was ranked 18th and South African was at 21st.

Compare with the administration structure in developed countries. Australia was ranked 1st for its GDP per capita in 2013, who only has 19 members of the cabinet. Singapore was ranked 2nd for GDP per capita in 2013 with 14 cabinet members, while the United States who came 3rd has cabinet members of 15 (see table).

According to Christianto, it would be enough if Jokowi has 17 ministries in order to run an effective and efficient government so that we can compete in the global market. Indonesian cabinet had reached a record of 104 members in the era Dwikora II Cabinet in the period of 24 February to 28 March 1966. (jok)

(source: Indonesian Business Data Center)

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GEDE RAKA

Cabinet Must Be Filled With Strong Character People The challenges to be faced by the upcoming new government will be very complex, both from within and the external ones. Therefore the next cabinet should be filled by people who have strong characters.

The opinion was conveyed by Gede Raka, Professor of the Institute of Technology Bandung (ITB), who currently manages a non-governmental organization (NGO) engaged in education named True Public Education, during an interview with The President Post on Wednesday (13/08).

According to Raka, Indonesia faces big challenges both from inside and outside. The internal challenges are three. First, the problem nationalism. A number of horizontal conflicts had appeared in various regions.

Strong Character

According to Raka, there are four conditions that must be met by the candidates of the upcoming Jokowi-JK cabinet ministers.

First, they must be good and has strong characters. This means, they have to be honest and brave enough to change the state.

"They should dare to take unpopular decisions for the good of the people in the long run. Do not seek own safety," he said.

As policy makers, ministers must focus on the interests of society, not put their own interests or groups first.

The second condition, they have to be nationalists. Currently, the policy makers

People tend to boast their locality and vigilante. "The integrity as a nation is in a problem," he said.

The second is of the internal challenges is the gap. The difference between rich and poor is widening. The development gap between the urban and rural areas gets bigger. The different between western and eastern Indonesia in term of development is also significant.

"Economic growth may get high but that kind of gap is not as we want," said Raka.

The third internal problem is corruption. Although the Corruption Eradication Commission (KPK) has uncovered major corruption cases but the corruption has become a culture in this country. "We have to get out of the habit of being a fence eating the plant," continued the man who is now also in the business as the management consultant. He also added, the culture

mostly think that Indonesia is as if only Greater Jakarta (Jakarata, Bogor, Depok, Tangerang, and Bekasi), so many policies issued only by accommodating the interests of the area and forget about the other regions. "The ministers should have loyalty to the state rather than to the political party or group," said Raka.

As for the third condition, is being innovative.

“Ministers are not an administrator. They should be able to find a new way that was never thought of before. A leader must be able to bring in the potential and participation of the society," he explained.

The fourth, said the man who once studied in the

of corruption led to Indonesia's competitiveness compared to other countries becomes weak.

Meanwhile, the external challenges to be faced by the next cabinet are two. First, the issue of independence. "We are not yet economically independent," he said. As a result, some government policies sometimes are ‘made hostage’ by the policies issued by the other countries. The second external issue is being lagged behind. We are lagged behind other countries that used to be equal with us.

"Twenty years ago, we are at the same level with China and India," said Raka. However, today we are far behind with the two countries. Their industry is growing rapidly and both are able to expand into other countries, including Indonesia.

United States, is able to realize the aspirations into reality. The leader is not only clever in planning but also be able to make the dream come true.

To find leaders who meet the four criteria, it can be done through headhunting as well as listen to the aspirations of the people. "It’s the combination between community input and searching," said Raka. Nevertheless, the president has the prerogative right to determine his aids. The ministers may come from the party or non-party, but the most essential is they have to meet the criteria that have been defined. (jok)

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BAMBANG S. WIDJANARKO

SPECIAL REPORT / AUGUST 2014

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Land Belongs to the People

The S2 alumni of Planology at Institute of Technology Bandung (ITB) in 1987 said the people are the owners of the land, not the state. The concept of the state as the owner of the land was ‘inherited’ by the colonial Dutch era which regarded Indonesia as a conquered country so they applied the theory of domeinverklaring (state owns the land).

In determining the rights to the land use, they applied theory of de-jure de-facto. "As long as there is no written evidence, the land belongs to the state," said former Director of State Land Management, Neglected Land and Critical Land of BPN. With domeinverklaring and de-jure de-facto theory, the state as the owner of the land can provide erpach or the rights of land usage (HGU) to the investors.

People, who are more entitled to become the owners under customary law, are in the last priority after the land under HGU concession abandoned. In fact based on the customary law, the people are the owners of the land.

As the land belongs to the people, then the type of rights over the land under article 16 of the Basic Agrarian Law (UUPA), will experience simplification into the ownership rights (permanent only for the Indonesian citizens) and usage rights (temporary/nonpermanent for the non citizens like corporations and government agencies). State land or land controlled by the state no longer exists. Forest Area category is abolished. For the purpose of conservation, some forest areas are allocated from the national and regional land reserves.

Fix Land Data in Indonesia Land disputes that often arise in various regions in Indonesia are triggered by weak data on the land ownership provided by the government. So far, the data has been compiled from the villages, while the collection and the preparation of the data are mostly still messy.

Therefore the upcoming new government should immediately fix the land records that include the administration, ownership, use and utilization of the land (P4T) at the village level. According to Bambang Sulistyo Widjanarko, the restoration of the data in the villages can be done through Community-Based Land Management (MPBM). Such a proposal was once submitted by Widjanarko to the government when he served as Head of Regional Office (Kakanwil) of National Land Agency (BPN) Central Java Province (2004-2008).

MBPM is able to overcome the limitations of the state budget in taking the inventory of P4T while at the same time will revitalize the village autonomy in developing the cultural roots of the nation. MPBM’s basic concept is to engage the community in soil mapping in the region with the guidance and supervision of the BPN. "We choose four villagers to be trained in measurement of the land in the village,"

Widjanarko told The President Post in Jakarta, on Monday (11/8).

The results of the mapping are then publicly announced by the village officials. Those who objected to the measurements can file complaint to the village officials. "Later, the village head and the officers who will resolve when there is a dispute," added the man who was born in Solo, on 5 February 1949.

Widjanarko added the MPBM model can be applied as a step in revitalizing the village profile with the data which is accurate, detailed to the parcel of land, clear, clean and updated all the time without being constrained by the limitations of the state budget.

Through the MPBM, the village people will be trained in recording, managing, maintaining and providing village profile data for various purposes, including as affirmation and recognition evidence of indigenous land rights, statistical purposes, etc.

If the data at the village level is in better organized, the data then can be used as the basis for the BPN to national land mapping in order to build Information and Management System of National Land (Simtanas).

Land tax is no longer applied because the land belongs to the people. What should to be taxed is the use and utilization of the land or the output of land cultivation. Granting the rights is not necessary anymore, what is still necessary is the affirmation and recognition by the state to the land belonging to the people. (jok)

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SPECIAL REPORT / AUGUST 2014

Establishment of Water Resources Ministry Called For

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FIRDAUS ALI

People are often busy talking about food and energy security and forget about the water security. In fact, without water security it is impossible to create resilience in the other two fields. It is time for Indonesia to pay serious attention to the problems on water by establishing the Ministry of Water Resources.

"All countries in ASEAN have the ministry of water resources. It should not stand by its own. It can be merged with the Ministry of Public Works so that its name becomes the Ministry of Public Works and Water Resources," Founder and Chairman of the Indonesia Water Institute (IWI) Firdaus Ali told The President Post, in Jakarta (5/8).

As an illustration, Singapore has the Ministry of Environment and Water Resources, while in Malaysia it is called the Ministry of Energy, Green Technology and Water. Cambodia also has the Ministry of Water Resources and Meteorology. According to Firdaus, if the water affairs are handled by a Directorate General like now, it cannot be maximally because the institution is dealing with technical matters not the policy maker.

According to the man, who had studied on water for 10 years in the United States, the first thing to do by the new upcoming government is to form a new ministry handling the water resources to build the water security. The ministry will design how to manage the water properly in order to avoid water crisis, in which experiencing short of water during the dry season and having excess water (flooding) during the rainy season.

The mismanagement in water can affect life in broad perspectives. For example, the floods and inundation in Jakarta have resulted in tremendous congestions so that the travel time from home to work places takes longer. Many people in Jakarta spend too much time on the streets and lose precious time with family. "Such a condition may create violence," said Firdaus.

Make Water Security Priority Water as a source of life is often overlooked. In fact, all the processes of life depend on water.

Water resistance should get priority over food and energy security.

"Only the wind and the sun that does not require water," said water expert Firdaus Ali, PhD in an interview with The President Post in Jakarta on Tuesday (5/8). Firdaus argued that the water security was more crucial than food and energy security since all processes of life need water. Never dream of having food and energy security if we do not have water, because water is more crucial than the other two, he said.

"One kilogram of rice requires 15 cubic meter of water," added Firdaus who got his degree of Doctor of Department of Civil and Environmental Engineering, University of Wsconsin-Madison, United States of America. Ironically, the availability of water in Indonesia, especially Java, continues to decline leading to the water crisis experiences.

The water crisis is the condition in which we lack or excess of water so bad for life. During dry season, the supply of clean water and water for agricultural irrigation is less causing dryness. While in the rainy season, we cannot control the runoff of rain water that causes water pooling and flooding.

It is necessary to have better water management. The government should build the infrastructure for the storage of water and flood control. "Compare it with India alone. They have 1,500 dams, dams in Japan are 3000, and USA has 6,210 dams," said Firdaus. Even China has 21,800 dams.

Let us take a look the reservoirs and dams in Indonesia. Currently, Indonesian has only 284 dams, 170 of which are located in Java. In the last ten years, there is

no construction of new reservoirs in Java. No wonder if in Jakarta there are only 38% of people who get water with good quality. "This is the worst for the city with a population of over five million people," said Firdaus, who was born on 21 April 1962.

The main problem faced by Indonesia today is a pattern of uneven population distribution.

Approximately 59% of Indonesia's population lives on the island of Java, which covers only 7% of Indonesia's land area. In fact, Java only has reserves of fresh water not more than 4.5% of total national freshwater reserves.

"The behavior of the population is also primitive," added Firdaus. The awareness of the population, especially in Jakarta, is still low. They litter badly so that the rivers are filled with household garbage. This continues to happen because of weak law enforcement by the government officials.

He gave an example of Indonesian Workers (TKI) that works in Singapore, Taiwan, Hong Kong and Saudi Arabia who can make a habit to dispose any waste in the bin when they are abroad, but unfortunately they tend to litter again when they arrive at Soekarno Hatta Airport, Jakarta, in their trip of going home. "That’s because they know there is no capital punishment here, not like abroad," said alumni of the Bandung Institute of Technology.

So, the key to keep the water security is the law enforcement. Through the law enforcement, the pollution and flooding problems can be overcome. Of course, the law enforcement must be followed by concrete measures such as the construction of enough numbers of reservoirs/dams, deep tunnels and the addition of green open spaces in the big cities. (jok)

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Government No Need to Raise Fuel Prices

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SPECIAL REPORT / AUGUST 2014

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IWAN RATMAN

In order to reduce the subsidy of fuel oils (BBM), which continues to swell, the government does not need to raise the prices of subsidized fuels. The suggestion to increase the prices is considered a trap that would complicate the government's position in the eyes of its people.

"Be careful. The suggestion to raise the prices is just a trap. There is no need to increase," said Major Specialist Deputy of Operations Control, Field Control Unit in Special Operations of Upstream Oil and Gas (SKK Migas) Iwan Ratman to The President Post during an interview in Jakarta on Wednesday (6/8).

As it is widely known, then in June 2014, the House of Representatives’ Budget Committee and the government agreed to revise the fuel subsidy 2014 from Rp246,5 to Rp210,7 trillion. This number is much smaller than the government's proposal of Rp285 trillion initially.

Some observers said that the upcoming new government must raise the prices of the subsidized fuels to reduce the burden on the budget. However, such suggestion was declined by Iwan. The doctorate graduate of Gas Engineering, UTM-Imperial College London, considers the suggestion to raise the fuel prices just a shortcut that does not solve the core problem.

"We must be creative and innovative," said Iwan, originated from Semarang, Central Java. He asserted that the price increase will make the ordinary people in difficulty because it will be followed by rising prices of the basic commodities. Iwan assures that without increasing the fuel prices the government actually can save the subsidy by Rp100 trillion per year.

Iwan said the government can issue some policies to reduce the fuel subsidy. First, the policy to reduce the fuel consumption for transportation. It can be done by raising the tax on the imported and sale of new cars using gasoline and diesel fuel to make their prices too high to buy. "If the cars are so expensive, who want to buy," said Iwan.

At the same time the government gives tax incentives on the sales of new cars using non-subsidized fuel, gas and electricity so that the selling prices of the vehicles are cheaper than subsidized gasoline-fueled cars. It is expected that the sales of cars using pertamax, gas and electricity will rise sharply. In addition, the government also develops a national car driven by gas or electricity as the fuel on a massive production scale.

The fourth is to limit the consumption of subsidized fuel for land transportation only. The subsidized fuel will only be used by public transportation (urban transport, minibus, bus, train) and motorcycles. The fuel consumption for public transportation can be limited by the use of ‘e-fuel card’. "Not by limiting the sale hours like nowadays," Iwan said, laughing.

Second, the policy to develop infrastructure of gas fuel massively. "All vehicles used at the state institutes are given the converter kit for free," said Iwan. He also called on the government to establish converter kit industry to guaranty the certainty of the supply. Even better if the government halted the permit issuance for opening new gas station for selling gasoline and diesel fuel.

Meanwhile the fifth is to reduce the consumption of subsidized fuel for sea transportation.

Gradually, the sea transportation system must be diverted from using the subsidized fuel to gas fuel.

It is expected that the subsidized fuel is only used for human transports and fishing boats belonging to fishermen.

The third step is to develop electric vehicle infrastructure. The government can establish cooperation with foreign partners to provide long-lasting battery. South Korean battery manufacturer LG has been able to produce a battery that can be used to travel a distance of 325 km in once full charging. In addition, the government is obliged to provide gas stations for recharging or exchange empty battery for the full-charged one.

Wipe Out Oil and Gas Mafia The important task to be performed by the Minister of Energy and Mineral Resources (ESDM) Jokowi-JK cabinet is to eradicate the mafia in the sector of oil and gas. It is not enough to just have the knowledge but should have the courage to crush the mafia that has cost the country and the people of Indonesia.

According to Deputy Operations Control, Field Control Unit in Special Operations of Upstream Oil and Gas (SKK Migas) Iwan Ratman, the government could wipe out the mafia as long as there is a will. "Surely you can do this. Moreover, if it is supported by the president," said Iwan to The President Post in Jakarta recently.

Oil mafia has moved to the downstream sector where the imports of crude oil and oil products are needed most. The imports are needed as the national production of crude oil with good quality is exported to get more income. The crude oil imported is in lower quality to fit the specifications of the refinery in the country. The crude oil, Iwan added, is imported by a subsidiary of Pertamina, Pertamina Energy Trading Ltd (Petral).

According to Iwan, many ways can be done by the government to eradicate the mafia of oil and gas. "Buy it directly at the producer, not through a broker," said Iwan, a Semarang origin. Petral, he added, should be able to get the oil directly from the producer so it will break the chain of oil mafia.

In addition to five steps above, the government should issue a national policy for power plants using fuel oil must be converted to gas, coal or other alternative energy sources. In addition, PLN should convert all subsidized fuel stations and replace with alternative energy sources, such as geothermal, micro hydro, solar, bio-energy, wind and tidal energy. (jok)

Another way is choosing the crude oil that gives maximum yield which will result in efficiency for the end products. In addition, Petral is recommended to buy crude oil with high sulfur content (0.5% - 0.7%) but still acceptable by the available refineries. "This type of oil can have 5% lower price," added the alumni of the University of Diponegoro, Semarang.

Iwan also asked the company to negotiate with refinery abroad who has an idle excess capacity, like the ones in South Korea, Japan and Taiwan.

Thus the purchase of petroleum products for domestic use can be less expensive than the direct imports.

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Involve Community in Forest Management Disputes over forest lands that often occur were due to the local community is not being involved in forest management. The government should make clear and unequivocal rules regarding the management of these forests.

HERMAN HIDAYAT

Forest Policy Researcher at the Indonesian Institute of Sciences (LIPI) Herman Hidayat urged the government to make strict rules concerning the borders forests and the lands belonging to the indigenous people. "The borders to separate the forest and the customary lands are often not clear.

This condition makes the conflicts on land dispute continue," Herman said in an interview with The President Post in Jakarta recently.

The government has claimed that the forest areas in Indonesia are about 130 million hectares consisting of production and conservation forests. The forest areas continue to shrink following the conversion of forests into oil palm plantations. According to the regulations, every industrial timber estate (HTI) must allocate 5% of its land for the local community. On that land, they have to plant the trees needed to give benefits to the community. "It can be rubber or other plants. The results are for the people living around the HTI," said Herman.

However, according to him, not all plantation companies comply with these rules. "In Paser, East Kalimantan, there a HTI company who does not involve the local community in its management." The company plant trees as the raw materials for pulp and paper. That is why he asked the new government to firmly set the ground rules about the forests. The allocation of land for indigenous people should not only be regulated by a Ministerial Decree but through a Presidential Decree which has a higher legal standing. In addition, the rules have to be more strict and binding, the law enforcement against violators of forestry issues also has to be improved.

About forest management, we can follow the example of Vietnam, he said. The Forest Management Rights (HPH) is managed jointly by the company and the surrounding community. By this way the community will not only become the workers for the company. Their income is also higher than that of a laborer.

Therefore, he proposed that the government will issue policies governing the forestry companies to provide 20% of the land for the surrounding community to be managed in a plasma system. "The company provides capital, fertilizer and market certainty," said the man who has been researching forest and its problems for 28 years.

So far the government is still focused on forests producing timber in the form of wood and its derivative products but gives less attention to forests with non-timber products. In fact, Herman said, timber generates only 20% of the total forest products. "That means the remaining 80% gets less attention and hasn’t been touched," Herman continued bitterly.

He pointed out some tropical forest products have high sales value, such as honey, medicinal plants, fruits, flowers typical of Indonesia such as orchids growing in the forests of Papua. "How much is their value?" (jok)

Kurdinanto Sarah: State Must Respect Transcendental Value Of the Land Land cannot meet the law of pure market, so it goes into the imperfect market which cannot be valued like a manufacturing product. For the local community, land has a transcendental values that must be respected by the state.

Therefore, in managing the land, the state must pay attention to the transcendental values. "The land is very important. We must respect the laws of local customs before using their land for development purposes," said Kurdinanto Sarah, Assessment Expert on Science and Technology Division at the National Defense Institute (Lemhanas) of the Republic of Indonesia.

In an interview with The President Post in Jakarta on Wednesday (6/8) Kurdianto, born on 20 March 1950, said the government often takes too lightly the transcendental values of the land. In the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI),

KURDINANTO SARAH

which was launched on 27 May2011, the government still considers the land as a commodity that can be traded following the usual commercial law.

In fact, the land should get special treatment with the regard to the customary law community (MHA). Thus, any use of the land for development process should be discussed with the community before making a decision. "Indeed, we are so tired of having to engage in such a dialogue. But it must be done," he added.

Involving the local community in the management of land is constitutionally mandated. In the 1945 Constitution, the results of the second amendment of Article 18 B of paragraph (2) in the chapter on Local Government and Article 28, paragraph l (3) in the chapter on Human Rights, it is stated that the state recognizes and respects the indigenous peoples along with their cultural identity and their rights.

Maritime SPECIAL REPORT

Rokhmin Dahuri: Time to Focus on Marine Economy Since the colonial era to the present, Indonesian development is still oriented on land. In fact, the majority of Indonesia territory is waters, reaching 75% of the total area. It is time for Indonesia to focus on the development of marine economy in order to create a great nation.

Until now, Indonesia is still a developing country with income per capita of US$5,400. Compared to the other countries, such as Singapore, South Korea and Taiwan, whose natural resources are limited, they can manage to become developed countries with income per capita more than US$30,000. "We rank sixth in ASEAN for HDI (Human Development Index)," said Rokhmin Dahuri, Professor of the Faculty of Fisheries and Marine Science, Bogor Agricultural Institute (IPB) in Jakarta, recently.

Rokhmin said, actually Indonesia has enough sources to become a developed nation. First, a large population, ie 250 million people with more productive age than non-productive age (demographic bonus). "This is outstandingly a big market," he added. Moreover, the number of middle class continues to grow.

The second is the abundant natural resources, both on land and sea. The third is a very strategic position of geoekonomic, at the heart of the global trades.

Approximately 45% of all commodities and goods traded in the world with the value of US$1,500 trillion per year are transported through Indonesian waters.

Unfortunately, since 1987 until now, Indonesia's foreign exchange continues to be wasted at the average of US$16 billion per year for paying the services of foreign ships that transport exported and imported goods as well as foreign ships operating between islands in Indonesia.

However, the government has not been optimally exploiting the potential of the Indonesian waters. Over the last 10 years, the majority (approximately 70%) of Indonesian economic growth generated by the consumption sector, the export of raw commodities (such as coal, minerals, palm oil, shrimp, tuna, and seaweed), financial services, and real sector of non-tradable , such as hotels, apartments, shopping malls, entertainment, buildings, and transportation services. The sectors are generally located in urban areas, and absorb less workforces, approximately 40,000 to 150,000 people per 1% of economic growth.

Therefore Rokhmin suggested that the economic development agenda is developing the sectors (economic activities) that can create jobs in large numbers and provide income that can improve the life of both the people and businesses equitable and

sustainable manner so that every citizen minimally can fulfill six basic needs namely food, clothing, housing, health, education, and transportation. In addition, the sectors must also be able to generate significant foreign currencies and high economic growth (above 7% per year) on an ongoing basis.

Rokhmin added, the economic development can be fulfilled by a marine-based economy in the utilization of natural resources and environmental services in the coastal areas and seas. The economic activities can take place in coastal areas and seas, or getting natural resources and raw materials from the coast and ocean then to process them in the upland areas.

According to him, Indonesia has at least eleven marine economic sectors, namely: (1) fisheries, (2) aquaculture, (3) fish processing industry, (4) marine biotechnology industry, (5) coastal forestry, (6) nautical tourism, (7) energy, (8) sea transportation, (9) industrial and maritime services, and (10) natural resources and environmental services such as non-conventional marine gas hydrates, bioenergy from seaweed, deep sea water industries, marine energy (wave, tidal and OTEC or Ocean Thermal Energy Conversion), and precious objects from sinking cargo ship (the treasure on the ocean floor), and (11) resources of small islands. (jok)

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Great Potential

The economic potential of Indonesia marine resources is estimated able to generate a value at US$1.2 trillion per year. Meanwhile, the job openings provided from this sector can reach about 40 million people. Therefore, if we are able to leverage the potential of maritime economy in a productive, efficient, equitable, and environmentally friendly, the problems of unemployment and poverty will be solved automatically.

"We do not need to send workers abroad," said Rokhim.

Rokhmin Dahuri: Do Not Underestimate Indonesian Marine Resources Indonesian marine resources are still taken lightly.

The contribution of all sectors related to maritime economy to the Gross Domestic Product (GDP) Indonesia is only 22%. It is much smaller than the countries whose maritime territory is smaller than Indonesia’s, such as Thailand, Japan, South Korea, China, Iceland, and Norway, where the contribution of maritime economy ranges between 30%-60% of their respective GDP. In fact, before the colonial era, Indonesia has become a world respected maritime nation. The triumph of the kingdoms of Tarumanagara, Sriwijaya, and Majapahit is the evidence that our ancestors had conquered the sea. The domination of Majapahit and Sriwijaya was followed by the Islamic Empire spreading throughout most of the archipelago since the 13th century AD. Despite its root as a nation of sailors, the development policy had been mainland centric which continued from the Old Order, New Order, and the beginning of the Era of Reform (1998). Just in September 1999, under the Government of the United Indonesia Cabinet, President KH Abdurrahman Wahid established the Ministry of Maritime Affairs and Fisheries (DKP) and the Indonesian Maritime Council (DMI) as one manifestation of the emergence of consciousness that blue economy concept is essential for the progress, prosperity, and sovereignty of the nation.

However, until now the contribution of maritime related sectors to national economic growth (such as GDP, exports, and the provision of labor) is much smaller than its potential, and much lower than those achieved by other countries with lesser marine resources. "The competitiveness of Indonesian maritime products and services generally still less than

similar products and services from other countries," said Marine expert from Bogor Agricultural Institute (IPB) Rokhmin Dahuri.

According to Rokhim, the economic growth generated by the maritime sector is only enjoyed by a small group of Indonesian people and foreigners who are involved in a variety of modern marine economic activities. Meanwhile, the majority of the population, especially fishermen, traditional fish traders, passengers and crew onboard commercial ships, and people in traditional shipping business are still wallowing in poverty.

In addition, water pollution, physical degradation of coastal ecosystems (such as mangroves, seagrass beds, coral reefs, and estuaries), abrasion, erosion of biodiversity, destruction of species, and other environmental damage are widespread and massive. In fact, in the coastal areas which are densely populated and/or high-intensity in development (such as Jakarta and cities in other northern coast), the speed of environmental damage has approached or even exceeded the carrying capacity of the environment and the sustainability of coastal areas to sustain future development activities.

We expect the development of blue economy in Indonesia could be like in Singapore, Langkawi, General Santos City in the Philippines which is known worldwide as the 'Tuna City', Xiamen, Sidney Harbour City, Abu Dhabi, and the tourist islands in the Maldives where the economic growth is relatively high, the local communities are prosperous, wealthy with peaceful life, but the environment is clean, beautiful and sustainable. (jok)

As a maritime nation and the world's largest archipelago, with 13,466 islands in the sea area of 5.8 million km2, including ZEEI and surrounded by 95,181 km of coastline, the second longest in the world after Canada; Indonesia has a very large marine wealth and diversity, both in the form of renewable natural resources (such as fisheries, coral reefs, mangrove forests, sea grass, and the products of biotechnology); non-renewable natural resources (such as oil and natural gas, tin, iron ore, bauxite, and other minerals); marine energy; and marine environmental services such as marine tourism and marine transportation.

According to Rokhmin, this potential of the abundant fisheries in Indonesia is still utilized minimally. The potential marine resources in Indonesia are still 20% utilized in the fishery of catching fish. This has lead to illegal fishing by foreign vessels.

The development of new growth centers will reduce the domination of Java (60%) and Sumatra (20%). The facts show that outside Java with relatively high potential of natural resources are not managed optimally. The contribution in Sulawesi and Kalimantan respectively is only 6% and 8% of gross domestic product (GDP). These figures are considered much too low from their potentials. (jok)

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EDIB MUSLIM

Natural resources and geographical position of Indonesia is a large principal for Indonesia to become the most powerful maritime nation in the world, rivaling the United States. It is time for Indonesia to change the mindset from mainland into maritime.

The Indonesia’s natural wealth should make the country rich and prosperous. "There are only two choices, rich and very rich," said Edib Muslims, Head of Public Communication and Promotion Division of the Secretariat of Committee for the Acceleration and Expansion of Indonesian Economic Development (KP3EI) to The President Post in Jakarta, on Tuesday (19/8) morning.

Edib’s optimism got bigger after the government initiated the concept of the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) on 27 May 2011. The concept, according to him, shows that the government has sincerity, thinking out of the box, smart and continue to seek a breakthrough. "It shows the commitment of the nation to have a competitive edge in the world economy."

Using this concept, the government is targeting by 2025, the income per capita of Indonesian people will reach US$14,250-16,000. Therefore, it needs a stable economic growth. "It should be above 7.2%," said Edib.

The government, he added, is open if the MP3EI concept will be changed for perfection. "If something goes wrong, correct it. If something is missing then add it," he said, adding that there is no nation in this world without sustainable development.

In preparing the draft of MP3EI, the government refers to the insights about archipelago. The seawaters are not taken dividers but the accesses to unite the

islands. Therefore, in preparing national spatial plan, the sea and land must be integrated.

Edib expressed his happiness when the concept of marine toll lane was brought into the conversation.

The concept of marine toll lane refers to the availability of large vessels that connect the ports throughout the archipelago. The concept has been included in the National Logistics System and MP3EI programs so they can complement each other.

According Edib, there are three requirements to be a big maritime nation. First, the ability to manage the existing assets in the waters. Indonesian fish resource potential is huge. Maritime Affairs and Fisheries Minister Sharif Cicip Sutardjo said that the potential of marine resources and fisheries in Indonesia worth at Rp3,000 trillion per year, while those already utilized have been at Rp225 trillion, or 7.5% only.

The second requirement is the ability to manage the access. "The SLOC (Sea Lane of Communication) has not been made use optimally," said Edib. Indonesia has very strategic geographical location because it has direct access to the largest market in the world, the Strait of Malacca, where it is ranked first in the global container shipping lines. Approximately 45% of the commodities are traded in the world passing through the strait. "It is Singapore and Malaysia who have utilized this lane," said Edib.

To harness the potential of the waterway, through MP3EI, the government has taken strategic steps to develop the Port of Kuala Tanjung in North Sumatra and the port of Bitung in North Sulawesi.

Kuala Tanjung port will be the center of trade and economy in the western region of Indonesia, while the Port of Bitung will become the trade center in eastern Indonesia. "Later, the import and export activities must pass through the two ports. They do not need to go through Jakarta or Surabaya anymore," he said. By this way the government will help protect the domestic products from the flood of the foreign goods.

Meanwhile, the third requirement is to establish a department especially manages maritime issues regarding the human resources, science and technology as well as issuing regulations. Edib exemplifies how the management of Indonesian human resources on maritime affairs is still weak.

"The Faculty of Fisheries at the University of Manado has modeled to the campus in Surabaya.

Manado should make its own kind, it can set up a Faculty of Sushi," he explained. Thus, the public will get more added values from the development of science and technology in the maritime sector. (jok)

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Seawaters Should Be Backbone for Transport Systems As an archipelago with vast ocean, Indonesia should put the ocean as the backbone of the national transportation system. The government is urged to build a multimodal transportation system proportionally. The opinion was conveyed

by Setijadi, founder of Supply Chain Indonesia (SCI), while in an interview with The President Post, in Jakarta, recently.

SETIJADI

According to Setijadi, the problems in the logistics system of Indonesia are very complex as it involves various factors, such as the wide diversity of commodities, area and geographical conditions, the condition of infrastructure, and so on. Another factor is too many stakeholders with various vested interests in the logistics systems, including some of the ministries and agencies at the central and local governments, State Owned Enterprises (SOEs), private companies, and others.

On the other hand, the implementation of the Blueprint of the National Logistics System Development (Sislognas) is not optimal. Though this blueprint has been released through Presidential Decree No. 26/2012 dated on 5 March 2012, "the main obstacle of Sislognas implementation is the commitment of the parties involved in the development of national logistics system, related to the goodwill of the parties to carry out the policy and strategy for achieving the goal of Sislognas in 2025," said Setijadi who was born in Purwokerto on 2 July 1971.

In addition to the commitment of the central government, a similar commitment is also required from the local governments, state owned enterprises and private actors as the players and providers of the logistics services, aside of the associations and other

parties.

Another issue that must be given more attention is the evaluation and supervision of the implementation of Sislognas, such as planning and the development of logistics infrastructure, as well as the operations. In the operational phase, evaluation and supervision are necessary especially regarding to the service performance, which could harm the costumers.

The S2 alumnus of Techno Economic Affairs Institute of Technology Bandung (ITB) added that the inadequate national logistics system has been an obstacle for the entrepreneurs in running their business. This condition has negatively affected the competitiveness of the products both at home and

abroad due to the price fluctuations and price disparities between regions for some goods, basic and strategic commodities in Indonesia.

Therefore, Sislognas needs to be strengthened to manage and coordinate the constituent components of the logistics system that includes commodities, human resources (HR), entrepreneurs and logistics service providers, infrastructure and technology, as well as regulations and policies in order to organize and manage the movement of goods or commodities from producing areas to consumers bases effectively and efficiently to build national competitiveness and improve the social welfare. (jok)

TANJUNG LESUNG

Flag-raising Ceremony in Tanjung Lesung Underwater

The commemoration of Indonesian Independence Day can be held not only on land but also underwater.

No less than 18 divers from the Navy, Water Police, journalists, and visitors of Tanjung Lesung Beach Club celebrated the 69th Indonesian Independence Day by holding the red and white flag-raising ceremony in the underwater of Tanjung Lesung beach, Serang, Banten.

In addition to the divers, the ceremony was also attended by 20 swimmers who followed the ceremony from the surface of the sea wearing snorkeling gears. The flag-raising ceremony was led by Setiawan Mardjuki, Director of PT Banten West Java Tourism Development, while diving.

The event was preceded by flag hoisting ceremony on the field of Tanjung Lesung Beach Club, attended by the entire staff and management of Tanjung Lesung Resort. A band also enlivened the event by presenting a number of songs with the theme of Indonesian Independence Day. The underwater flag-raising ceremony lasted for 30 minutes and was followed by planting coral reefs as a marine conservation deed in offshore of Tanjung Lesung.

Although the visibility in the sea was very limited, as always happened during the rainy season, but the spirit of the divers and swimmers looked so high and they expressed their pride for being able to participate in the anniversary celebration of the Republic of Indonesia. (rgp)

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to Setijadi, Chairman Supply Chain Indonesia, is due to the lack of government’s attention to the marine sector. "As an archipelago, the sea transport should be the back bone," said Setijadi. The construction of marine logistics system is still lame and focusing on the western Indonesia. As a result, the ships from east to west mostly empty as there is no cargo.

AXIS OF MARITIME

Several participants provided input for the development of maritime in Indonesia. Adiwijaya of President University said marine development in Indonesia can be done in two ways. First, change the mind-set. "We do not need development, but needs to grow the business. By developing the business, there is an automatic development," he said. The second way is to develop floating ports for connecting islands of Indonesia.

Panel Discussion on Maritime: Develop Human Resources Indonesia’s enormous potential in maritime is being hindered by the lack of qualified human resources. Therefore the government is urged to develop the human resources in order to utilize the marine resources for equal prosperity of the nation.

That was the conclusion of the seminar on "Maritime Axis for Welfare and Justice" organized by the Archipelago Study Team, Coalition House of Great Indonesian (RKIH) in cooperation with The President Post, in the President Lounge, Menara Batavia Jakarta, on Thursday (14/8).

Rokhmin Dahuri, former Minister of Maritime Affairs and Fisheries, said Indonesia has capitals base to become a developed nation, prosperous and sovereign.

The capitals include the population which reaches 250 million, abundant and diverse natural resources, as

well as having very strategic position in the geoeconomy as the center of global trade.

According to Rokhmin, Indonesia could become a great maritime nation. "Indonesia is a maritime nation and the world's largest archipelago with 17,504 islands and has 95,181 km of coastline, the second longest after the Canada," said the Professor of the Institute of Agriculture (IPB).

Meantime Benny Woenardi, Managing Director of Cikarang Dry Port, one of the panelists, said that the world container traffic mostly passing through ASEAN and East Asian countries. Unfortunately Indonesia only has five major ports, one in Belawan, Sumatera, three in Java and one in Makassar.

The reason why the potential of marine resources in Indonesia are not being utilized maximally, according

Interesting issue came up from Andreanus, researchers from IPB Bogor. According to him, the skills of Indonesian marine human resources are still low. The schools in the maritime field are also lacking. "And most of the graduates choose working in foreign vessels," he complained.

Therefore, he asked the government to give serious attention to human resource development of this marine.

In addition to human resources, the development of the maritime sector is constrained by difficulty of the fishermen in getting the access to the capital. The banks put fishery as the high risk sector. "That’s why Jokowi’s government will establish an agro maritime bank," said Rokhmin.

Meanwhile Capt Lai Chun Wen, a businessman from Taiwan, offered easy but better way to catch fish by using Set Net and Purse Seiner. “By either way, we can catch up 100-200 tons a day. This system also environmentally friendly as there is only the big fish netted.”

The panel discussion was held at the President Lounge, Menara Batavia, Jakarta, presenting Rokhmin Dahuri as a keynote speaker and panelists Benny Woenardi (Cikarang Dry Port), Setijadi (Suplly Chain premises), and Capt Lai Chun Wen. (jok)

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CIKARANG DRY PORT

CIKARANGDRY DRYPORT PORTINCREASINGLY SEMAKIN MENJADI PILIHAN CIKARANG GETS FAVORED

I

n 2014 Cikarang Dry Port enters 4th memasuki year in operation.

Since i tahun 2014 ini Cikarang Dry Port tahun ke-4 beroperasi. thenSejak more saat and more companies are perusahaan using Cikarang Port itu semakin banyak yangDry memanfaatkan for their import The companies benefit from the Cikarang Dryexport Port activities. untuk kegiatan ekspor impornya.

Perusahaan certainty of lead time, one stop service, and the lower total logistics ƚĞƌƐĞďƵƚ ŵĞƌĂƐĂŬĂŶ ŵĂŶĨĂĂƚ ĚĂƌŝ ŬĞƉĂƐƟĂŶ ůĞĂĚ ƟŵĞ͕ ůĂLJĂŶĂŶ ƐĂƚƵ ƉŝŶƚƵ͕ ĚĂŶ costs. ƚŽƚĂů ďŝĂLJĂ ůŽŐŝƐƟŬ LJĂŶŐ ůĞďŝŚ ƌĞŶĚĂŚ͘ >ĂLJĂŶĂŶ ĞĂ ƵŬĂŝ ƚĞƌƐĞĚŝĂ ĚĂůĂŵ ƉĂLJƵŶŐ <ĂǁĂƐĂŶ WĞůĂLJĂŶĂŶ WĂďĞĂŶ dĞƌƉĂĚƵ ƉĞƌƚĂŵĂ ĚĂŶ ƐĂƚƵCustomsĚŝ services are available under theƐƵĚĂŚ first and only Integrated ƐĂƚƵŶLJĂ /ŶĚŽŶĞƐŝĂ͘ >ĂLJĂŶĂŶ <ĂƌĂŶƟŶĂ ůĞŶŐŬĂƉ ƚĞƌƐĞĚŝĂ ďĂŝŬ ŝƚƵ Customs Services Zone (KPPT) in Indonesia.

Animal Quarantine, Plant <ĂƌĂŶƟŶĂ ,ĞǁĂŶ͕ <ĂƌĂŶƟŶĂ dƵŵďƵŚĂŶ͕ ŵĂƵƉƵŶ <ĂƌĂŶƟŶĂ /ŬĂŶ͘ Quarantine, and Fish Quarantine are available and integrated in Cikarang ƌLJ Dry WŽƌƚ Port.ũƵŐĂ Cikarang Dry Port is one a few ports connected ŝŬĂƌĂŶŐ ŵĞƌƵƉĂŬĂŶ ƐĂůĂŚ ƐĂƚƵ ofƉĞůĂďƵŚĂŶ LJĂŶŐ ƚĞƌŚƵďƵŶŐ to Indonesia National Single Window (INSW). dengan /ŶĚŽŶĞƐŝĂ EĂƟŽŶĂů ^ŝŶŐůĞ tŝŶĚŽǁ͘ ĞŶŐĂŶ ďĞƌďĂŐĂŝ ĨĂƐŝůŝƚĂƐ ĚĂŶ ůĂLJĂŶĂŶ LJĂŶŐ ƚĞƌƐĞĚŝĂ Ěŝ ƐĂŶĂ͕ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ŵĂŵƉƵ ŵĞŶĂǁĂƌŬĂŶ With all the facilities and services provided, Cikarang Dry Port could ƉĞůĂLJĂŶĂŶ ƐĂƚƵ ƉŝŶƚƵ ƵŶƚƵŬ ƉĞŶĂŶŐĂŶĂŶ ŬĂƌŐŽ ĚĂŶ ƐŽůƵƐŝ ůŽŐŝƐƟŬ ďĂŐŝ offer one stop service for cargo handling and logistics solution for ĂŬƟǀŝƚĂƐ ĞŬƐƉŽƌ ŝŵƉŽƌ ŵĂƵƉƵŶ ĚŝƐƚƌŝďƵƐŝ ĚŽŵĞƐƟŬ͘ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ export import activities or domestic distribution. Cikarang Dry Port is ŵĞƌƵƉĂŬĂŶ ĨĂƐŝůŝƚĂƐ ƉĞůĂďƵŚĂŶ ĚĂŶ ůŽŐŝƐƟĐ ƚĞƌƉĂĚƵ LJĂŶŐ ƉĞƌƚĂŵĂ Ěŝ /ŶĚŽthe first in Indonesia to be able to boast itself as integrated port and nesia. logistics facilities.

` ŝďĂŶĚŝŶŐŬĂŶ ƚĂŚƵŶ ƐĞďĞůƵŵŶLJĂ͕ ǀŽůƵŵĞ Ěŝ increased ƚĂŚƵŶ ϮϬϭϯ Compared to previous year, the export andĞŬƐƉŽƌ importŝŵƉŽƌ volume ŵĞŶŝŶŐŬĂƚ ŚŝŶŐŐĂ ůĞďŝŚ ĚĂƌŝ ĞŵƉĂƚ ŬĂůŝ ůŝƉĂƚ ĚŝďĂŶĚŝŶŐŬĂŶ ƚĂŚƵŶ ƐĞďĞůƵŵfour folds in 2013. Thanks to these companies who already enjoy the ŶLJĂ͘ ĞƌŬĂƚ ďĞďĞƌĂƉĂ ƉĞƌƵƐĂŚĂĂŶ ďĞƌŝŬƵƚ LJĂŶŐ ƚĞůĂŚ ŵĞŵĂŶĨĂƚŬĂŶ ĚĂŶ benefits of conducting their exports and imports through Cikarang Dry ŵĞůĂŬƵŬĂŶ ŬĞŐŝĂƚĂŶ ĞŬƐƉŽƌ ĚĂŶ ŝŵƉŽƌŶLJĂ ŵĞůĂůƵŝ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ͖ Wd͘ Port; PT. Unilever Indonesia Tbk, PT Procter & Gamble Home Products hŶŝůĞǀĞƌ ŝŶĚŽŶĞƐŝĂ dďŬ͕ Wd WƌŽĐƚĞƌ Θ 'ĂŵďůĞ ,ŽŵĞ WƌŽĚƵĐƚƐ /ŶĚŽŶĞƐŝĂ͕ Wd͘ Indonesia, PT Sumitomo Indonesia, PT Nissan Trading Indonesia , PT ^ƵŵŝƚŽŵŽ /ŶĚŽŶĞƐŝĂ͕ Wd EŝƐƐĂŶ dƌĂĚŝŶŐ /ŶĚŽŶĞƐŝĂ 'ĞŶĞƌĂů DŽƚŽƌƐ General Motors Indonesia Manufacturing, PT Takata͕ Wd͘ Automotive, PT /ŶĚŽŶĞƐŝĂ DĂŶƵĨĂĐƚƵƌŝŶŐ͕ Wd͘ dĂŬĂƚĂ ƵƚŽŵŽƟǀĞ ͕ Wd͘ <ƌĂŌ /ŶĚŽŶĞƐŝĂ Kraft Indonesia , Garuda Food, PT Dexa-Medica Indonesia, PT Tekpak ͕ 'ĂƌƵĚĂ &ŽŽĚ͕ ĞdžĂͲDĞĚŝĐĂ /ŶĚŽŶĞƐŝĂ͕ dĞŬƉĂŬ /ŶĚŽŶĞƐŝĂ͕ IndoneWd͘ /ŶĚŽIndonesia, PT Wd͘ Indopoly Swakarsa Industry Wd Tbk, PT Tupperware ƉŽůLJ ^ǁĂŬĂƌƐĂ /ŶĚƵƐƚƌLJ dďŬ͕ Wd dƵƉƉĞƌǁĂƌĞ /ŶĚŽŶĞƐŝĂ͕ Wd͘ ĂŝŬŝŶ ŝƌĐŽŶĚŝsia, PT Daikin Airconditioning, PT Toshiba Consumer Products IndoneƟŽŶŝŶŐ͕ Wd͘ dŽƐŚŝďĂ WƌŽĚƵĐƚƐ Wd͘ zĂŵĂŚĂ DƵƐŝĐ sia, PT Yamaha Music ŽŶƐƵŵĞƌ Manufacturing Asia,/ŶĚŽŶĞƐŝĂ PT South ͕ Pacific Viscose, PT Pindo Deli Pulp ƐŝĂ͕ And Wd͘ Papermills , PT D&D Packaging Indonesia, etc. ŶĚ DĂŶƵĨĂĐƚƵƌŝŶŐ ^ŽƵƚŚ WĂĐŝĮĐ sŝƐĐŽƐĞ͕ Wd͘ WŝŶĚŽ Ğůŝ WƵůƉ WĂƉĞƌŵŝůůƐ ͕ Wd͘ Θ WĂĐŬĂŐŝŶŐ /ŶĚŽŶĞƐŝĂ͕ Ěůů͘ With international port code IDJBK, Cikarang Dry Port could serve as place of ŬŽĚĞ receipt for exportŝŶƚĞƌŶĂƐŝŽŶĂů activities or place delivery ƌLJ for import ĞŶŐĂŶ ƉĞůĂďƵŚĂŶ / : <͕ of ŝŬĂƌĂŶŐ WŽƌƚ ďĞƌůĂŬƵ

activities.

Multimodal transport bill of lading services from ƐĞďĂŐĂŝ ƉĞůĂďƵŚĂŶ ĂƐĂů ƵŶƚƵŬ ŬĞŐŝĂƚĂŶ ĞŬƐƉŽƌ ;ƉůĂĐĞ ŽĨ shipping ƌĞĐĞŝƉƚͿ ĂƚĂƵ lines partners connecting Cikarang Dry Port to any ports of call around ƉĞůĂďƵŚĂŶ ƚƵũƵĂŶ ƵŶƚƵŬ ŬĞŐŝĂƚĂŶ ŝŵƉŽƌƚ ;ƉůĂĐĞ ŽĨ ĚĞůŝǀĞƌLJͿ͘ >ĂLJĂŶĂŶ ŵƵůƟthe world, enabling direct export or import through Cikarang Dry Port’s ŵŽĚĂů ƚƌĂŶƐƉŽƌƚ ďŝůů ŽĨ ůĂĚŝŶŐ ĚĂƌŝ ƉĞƌƵƐĂŚĂĂŶ ƉĞůĂLJĂƌĂŶ ŵĞŶŐŚƵďƵŶŐŬĂŶ terminal. ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ĚĞŶŐĂŶ ďĞƌďĂŐĂŝ ƉĞůĂďƵŚĂŶ Ěŝ ƐĞůƵƌƵŚ ƉĞŶũƵƌƵ ĚƵŶŝĂ LJĂŶŐ ŵĞŵƵŶŐŬŝŶŬĂŶ ŬĞŐŝĂƚĂŶ ĞŬƐƉŽƌ ŵĂƵƉƵŶ ŝŵƉŽƌ ĚĂƉĂƚ ĚŝůĂŬƵŬĂŶ ůĂŶŐUntil 18 shipping lines had joined direct18 export import sung recently, di Cikarang Dry Port.

Sampai saat to ini offer terdapat perusahaan services at Cikarang Dry Port; Maersk Line, MCC Transport, Safmarine, ƉĞůĂLJĂƌĂŶ LJĂŶŐ ƚĞůĂŚ ŵĞŵďĞƌŝŬĂŶ ůĂLJĂŶĂŶ Ěŝ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ĂĚĂůĂŚ CMA CGM, Delmas, APL, MOL (Mitsui O.S.K DĂĞƌƐŬ >ŝŶĞ͕ CNC, D ANL, dƌĂŶƐƉŽƌƚ͕ ^ĂĨŵĂƌŝŶĞ͕ D 'D͕ E ͕ Line), E>͕ MSC, ĞůŵĂƐ͕ SITC, Hanjin Shipping, Gold Star Line, Sinokor, Heung-A, “K” and W>͕ DK> ;DŝƚƐƵŝ K͘^͘< >ŝŶĞͿ D^ ͕ ^/d ͕ ,ĂŶũŝŶ ^ŚŝƉƉŝŶŐ͕ 'ŽůĚ Line, ^ƚĂƌ >ŝŶĞ͕ CSCL. ^ŝŶŽŬŽƌ͕ ,ĞƵŶŐͲ ͕ ͞<͟ >ŝŶĞ͕ ĂŶĚ ^ >͘ ĞƌďĂŐĂŝ ůĂLJĂŶĂŶ ƉĞůĂLJĂƌĂŶ LJĂŶŐ

ƚĞƌƐĞĚŝĂ ŵĞŵďĞƌŝŬĂŶ ďĂŶLJĂŬ ƉŝůŝŚĂŶ ďĂŐŝ ĞŬƐƉŽƌƟƌ ŵĂƵƉƵŶ ŝŵƉŽƌƟƌ ĚĂůĂŵ Those shipping lines with their differentiated services and characterisŵĞůĂŬƵŬĂŶ ĂŬƟǀŝƚĂƐ ůŽŐŝƐƟŬŶLJĂ Ěŝ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ͘ tics offer choices for shippers or consignees in conducting their export and import activities in Cikarang Dry Port. For further logistics services, hŶƚƵŬ ůĂLJĂŶĂŶ ůŽŐŝƐƟŬ ůĞďŝŚ ůĂŶũƵƚ͕ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ŵĞŶLJĂŵďƵƚ ďĂŝŬ Cikarang Dry Port also welcomes third party logistics providers (3PL) to ƉĞŶLJĞĚŝĂ ũĂƐĂ ůŽŐŝƐƟŬ ƉŝŚĂŬ ŬĞƟŐĂ ƵŶƚƵŬ ŵĞŵďƵŬĂ ũĂƐĂŶLJĂ͘ ^ĂŵƉĂŝ ƐĂĂƚ ŝŶŝ open their services. More than 30 third party logistics providers either ůĞďŝŚ ĚĂƌŝ ƉĞƌƵƐĂŚĂĂŶ ůŽŐŝƐƟŬ ŐůŽďĂů serving ŵĂƵƉƵŶ ůŽĐĂů ƚĞůĂŚ ŵĞůĂLJĂŶŝ global and ϯϬ local names alike are already their costumers in ƉĞůĂŶŐŐĂŶŶLJĂ Ěŝ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ͘ Cikarang Dry Port.

hŶƚƵŬ ŵĞŶĚƵŬƵŶŐ ĂŬƟǀŝƚĂƐ ƉĂƌĂ ƉĞůĂŬƵ ůŽŐŝƐƟŬ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ŵĞŶLJŝĂƉTo facilitate logistics activities, Cikarang Dry Port allocates 200 hectares ŬĂŶ ůĂŚĂŶ ϮϬϬ ŚĞŬƚĂƌ LJĂŶŐ toŵƵĚĂŚ ĂŬƐĞƐ ĚĞŶŐĂŶ ũĂůĂŶ Cikarang ƌĂLJĂ ŵĂƵƉƵŶ of land with direct access highway andďĂŝŬ railway system.

Dry ũĂůƵƌ ŬĞƌĞƚĂ͘ ^ĂŵƉĂŝ ƐĂĂƚ ŝŶŝ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ƚĞůĂŚ ŵĞŵďĂŶŐƵŶ ĚĂŶ ŵĞŶPort developed and operates the facilities with capacity of 400,000 ŐŽƉĞƌĂƐŝŬĂŶ ĚĞŶŐĂŶ ŬĂƉĂƐŝƚĂƐ TEUs export ĨĂƐŝůŝƚĂƐ and import cargos annually.ƚĞƌƉĂƐĂŶŐ ƐĞŬŝƚĂƌ ϰϬϬ͘ϬϬϬ d hƐ kargo ekspor impor per tahun.

Cikarang Dry Port juga berfungsi sebagai ` ƚĞƌŵŝŶĂů ĂƚĂƵ ƐƚĂƐŝƵŶ ƵŶƚƵŬ ũĂůƵƌ ŬĞƌĞƚĂ ďĂƌĂŶŐ ĚŽŵĞƐƟŬ ůŝŶƚĂƐ :ĂǁĂ LJĂŶŐ Cikarang Dry Port also functions as the terminal for domestic rail freight ŵĞŶŐŚƵďƵŶŐŬĂŶ :ĂďŽĚĞƚĂďĞŬ ĚĞŶŐĂŶ ^ƵƌĂďĂLJĂ ĚĂŶ ũƵŐĂ ĂŶĚƵŶŐ͘ ŝƐƚƌŝcargo services, connecting Greater Jakarta to Surabaya and Bandung. ďƵƐŝ ĚŽŵĞƐƟŬ ďĞƌƵƉĂ services ĂŶŐŬƵƚĂŶ ŬĞŵĂƐ ŵĞŶŐŐƵŶĂŬĂŶ Domestic rail freight areƉĞƟ served by ĚĞŶŐĂŶ PT Sentra Logistik, an ŬĞƌĞƚĂ ďĂƌĂŶŐ ƐĂĂƚ ĚŝůĂLJĂŶŝ ŽůĞŚ Wd as ^ĞŶƚƌĂ >ŽŐŝƐƟŬ͕ ĂĮůŝĂƐŝ >ŽŐŝƐƟĐƐ WůƵƐ affiliation of ŝŶŝ Logistics Plus USA one of Cikarang Dry ĚĂƌŝ Port’s partners.

These rail freight services paved the road for Cikarang Dry Port to h^ ƐĞďĂŐĂŝ ƐĂůĂŚ ƐĂƚƵ ƌĞŬĂŶĂŶ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ͘ >ĂLJĂŶĂŶ ŬĞƌĞƚĂ ďĂƌĂŶŐ become a main intermodal hub in Indonesia. ŝŶŝ ŵĞŵĂŶƚĂƉŬĂŶ ůĂŶŐŬĂŚ ŝŬĂƌĂŶŐ ƌLJ WŽƌƚ ƵŶƚƵŬ ŵĞŶũĂĚŝ ŚƵď ĂŶƚĂƌŵŽĚĂ utama di Indonesia.

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page.15

Harley Davidson Gathering The formation and inauguration of the Regional Board of Harley Davidson Club Indonesia (HDCI) Jakarta for the period of 2014-2017 was organized in the Tanjung Lesung Beach Hotel. The community held a gathering on 15-16 March 2014, with the participants brought in about 200 units Harley.

CSR Tennis Training Tennis Training Clinic for Children is coached by tennis instructor Mr. James Corden-Lloyd, certified with PTR (Professional Tennis Registry), gave the concept of practical training in the field and theory in the classroom in the function room of Tanjung Lesung Beach Hotel. The children showed their enthusiasts to the new sport activity they just experienced by expressing their excitement and asking a lot of questions.

Cap Go Meh Night in Tanjung Lesung The beauty of the sky at Tanjung Lesung was more lively when visitors simultaneously released colorful flying paper lanterns. The event was packaged by Tanjung Dimples Beach Hotel as the peak of Cap Go Meh who was celebrated in February 2014.

Fun Bike In Tanjung Lesung On 6-8 July 2014, an event called Explore Indonesia was held by Panorama magazine by organizing a series of trips to a number of tourism sites in Banten. The event was participated by 35 people with a variety of activities, one of them was the exploration of Tanjung Lesung natural beauty with Fun Bike

Short Movie Competition, 2 - 4 September 2014 A competition of movie making digitally by recording the natural beauty in the form of short films with the theme "I Love Indonesia" will be held on 26-28 August 2014. The filming locations is in the area of Tanjung Lesung beach.

Ground Cross Bike Competition 5-7 September 2014 Bikers & Photographers are Welcome ...!

This event is open to all bikers to be held in the Bike Park of Tanjung Lesung.

The categories include pumping, cross-ground, cross country and all mountain.

Another program will be contested is the panning photography technique.

page.16

SPECIAL REPORT / AUGUST 2014

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while each hole has also has its own challenges.

The golf tournament at Porda Jabar will be organized for four days, with several categories consisting of team, individual, foursome male and female as well as combined group.

JABABEKA GOLF

Separately, General Manager of JGCC W. Widiasmanto explained about the purpose of JGCC supporting TGP Bekasi. "We are particularly concerned with the development of golf, especially the junior golfer. Becoming the venue for the Porda Jabar is one of the forms of our supports."

He also hoped TGP Bekasi will win the gold medals in the tournament.

Jababeka Golf Supports Bekasi Golfers To Clean Sweep Porda Medals

Acting as the host, Porda Golf Team (TGP) Bekasi is determined to be a champion with a clean sweep of all the medals in the golf tournament of the Regional Sports Week (Porda) West Java (Jabar), which will be held in Jababeka Golf Country Club (JGCC) in November 2014. To achieve the target, TGP Bekasi has been intensifying its preparation.

In an interview with Jababeka Magazine recently, TGP Bekasi Team Manager Agus Sukarna talked about the readiness of the golfers in winning the Porda Jabar 2014. "Our preparation (TGP Bekasi) has been starting since January, by practicing in the driving range every day and playing twice a week," he explained.

He added that the exercise is done in order to achieve a target of overall winner at Porda Jabar 2014. "As the host, we have targeted to become the overall champion, and I am optimistic that the target can be achieved," said Agus.

According to him, there are four male golfers in the TGP Bekasi who will compete at Porda Jabar 2014, namely Fatih, Kevin, Michael and Almay, with the average age at 18 years old. The women's team is supported by three golfers. In August there will be a selection among the golfers. "We will select which ones of them will become the core members and which ones are the reserves," he said.

In the meantime head coach of TGP Bekasi, Benny Kasiadi, explained about his training methods. "The training programs vary, ranging from physical exercises, short games, middle around, to the long games," he said. In addition, Benny also holds field management training with the aim that the golfers will be better familiar with the golf course and able to master hole by hole.

Regarding the challenges of the golf course of JGCC, both Agus and Benny said JGCC field structure is quite challenging due to set up of international standard on the contours and the greens with the slops,

Regarding the preparation of JGCC, Widi said, "In principle we are ready because we've also had the experience early this year as the venue for an international tournament called Asian Tour." He further explained that the preparation included the field care by providing vitamins for the grass and training the human resources, especially the caddies.

"The caddies have to get walking exercises because in this tournament the Porda athletes will not be allowed to ride the golf carts and the caddies have to follow them on foot. While having the physical exercises by walking around the field, they will also become familiar with the characters of the field so that they can give better advices to the players about the direction of the shot or other things," he added.

JGCC is designed by world renowned golfer Nick Faldo, covering an area of 67 hectares with 18 holes with each hole has its own challenges.

According to Widiastomo, the hole with more difficulty for most golfers generally is the hole 16.

"The distance is short but itâ&#x20AC;&#x2122;s not easy, because there are obstacles especially the lake and the bunker is also more difficult."

Actually, there are directions available in the middle of fairway in every hole that can be used by the golfers. Up to now, Widiastomo said many golfers have scored hole in one, especially at the holes of 2, 6, 13, and 17.