The President Post August 2016 English Edition by The President Post

August, 2016 | Vol. 5 No. 38

IDR 10,000

TOURISM

55 Countries Will Participate in the PATA Travel Mart 2016

INFOGRAFPHIC

PATA TRAVEL MART 2016

Kendal Industrial Park Infographic

September 7-9 Indonesia Convention Exhibition (ICE) BSD, Tangerang, Indonesia

Page A6

Maritime Affairs and Fisheries Minister Susi Pudjiastuti has sunk 60 illegal fishing vessels operating in a number of Indonesian regions. The sinking was done by punching holes in the hulls. “I am not talking about territorial authority, but I am referring to marine and sea resources. The fish that swim in our exclusive economic zone are ours,” said Susi at the Ranai Naval Base Command Headquarters, Natuna, Riau Archipelago, on Wednesday, 17 August 2016.

The illegal fishing eradication joint taskforce has sunk the boats in eight locations: Batam, Parempa, Ranai Natuna, Morotai, Sorong, the Moluccas, and Tarakan, North Kalimantan. Two of the boats had Indonesian flags, while the 58 others flied foreign flags.

“Most of the boats were captured in Natuna,” said Susi. The reason is because it is the most spacious sea territory in Indonesia, bordering with Vietnam, Malaysia, and the Philippines. Indonesia’s economic economy zone (ZEE) is 200 miles and adjacent with the South China Sea. Up to now the government has drawn 236 illegal boats in Indonesian waters. Previously, Susi even sank a Viking ship with multiple flags. Susi has planned an operation of capturing illegal fishing vessels in Pangandaran, West Java. Six boats are expected to be rendered to unable for operational anymore. “We coordinate with the United States and Norway,” she said.(igt)

Quote Of The Day

OPINION

Tax Haven Helps In Development of Disadvataged Regions Page B7

Page B2 PROMOTE AND SHOWCASE YOUR BUSINESS

PATA TRAVEL MART 2016

Government Sinks 60 Illegal Fishing Boats on Independence Day

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EXPERIENCED SELLERS Our previous event featured approximately 500 seller delegates from 30 destinations, ranging from Asia Pacific’s leading travel companies to emerging small and medium-sized enterprises.

PATA Travel Mart (PTM) is the Association’s on’s signature event and Asia Pacific’s premier travel trade show how ongoing in its 39th year, featuring unparalleled networking rking and contracting opportunities to help travel and tourism m organisations access decision makers, meet new clients, expand and their network and build or maintain existing relationships. hips.

19% Accommodation 1.5% Airlines 2% Associations 43% DMC / Tour Operators 1.5% Event Companies 3% IT/Technology Companies 23% NTO / State, City Tourism 2% Transportation Services 5% Others i.e. Attractions, Restaurant, Airport, Venue, Press

Five Good Reasons to Invest in Kendal Singapore City Seller Profile

WHY JOIN PTM?

Our MicroEnterprise Pavilion also accommodates small companies and family businesses with 5-10 employees, a cost-effective opportunity for such sellers to enjoy exposure to an influential global audience. “It was a pleasure meeting you too and thank you for dropping by at our stall. PATA events will be on our top agenda & would try to participate in many of them. The just concluded mart has been a good platform for us to make new contacts. - Ayappa Somaiah, Vice President, Splendour Holidays, India

Asia-Pacific is one of the most dynamic and rapidly growing travel market rket places in the world.

HOSTED BUYERS

Maximize business opportunities unities 00 pre-matched Two full days of over 10,000 appointments facilitated through PATA’s custom business matchingg software.

Each buyer is carefully selected based on continuous purchase record in the Asia-Pacific region or a strong intention to purchase, along with proven experience in the industry.

Buyer Region

30% Northeast Asia 13% Southeast Asia 4% Middle East Africa 3% Latin America

Meet the industry’s A-list buyers y 0+ community Exclusive access to the 300+ of qualified hosted international ational buyers.

Profile

We bring the world to you Engage with more than 1,000 000 delegates from 61 destinations across ss the globe

40% Leisure 5% MICE

“It was a pleasure and an honour to take part in PTM Bangalore. It is always well-organised and very professional!”

Exciting side events for networking Socialize throughout the complimentary tours, dinner ner receptions, late night functions, ctions, and at the Network Lounge. ge. Cost effective Special airfare and accommodation rates are available to all participating ng delegates

- Mariagrazia Crotti, Weltstudio, Italy

EXPERIENCE A NEW EXP

DESTINATION

GAIN KNOWLEDGE AND INSIGHTS

Unlike other travel trade exhib exhibitions, PTM offers delegates a different host destination each yea year, uniquely showcasing the diversity of destinations across Asia-Pacific Asia-Pacif while bringing together a new set of buyers and sellers to every show.

PTM Talks feature a series of 20-minute ‘power’ workshops/seminars within the main trade hall for a small group of delegates, focusing on social media, sustainable tourism, and marketing skills.

PTM 2016 takes place at the Balai Sidang Jakarta Convention Center and is kindly hosted by the Minist Ministry of Tourism, Republic of Indonesia in partnership with Jak Jakarta City and PATA Indonesia Chapter.

Learn something new The event offers fresh perspectives on topical issues through PTM Forums and PTM Talks

18% Europe 14% North America 4% Oceania

51% Leisure & MICE 4% Others / Special Inter

The PTM Forum held alongside the buyers-seller mart allows delegates to network and learn from highly experienced industry leaders in travel, tourism and hospitality.

TENTATIVE PROGRAMME

September 6 (Tuesday)

Booth Setup & Decoration Registration

September 7 (Wednesday)

Booth Setup & Decoration Registration Half-day Complimentary Tour Welcome Dinner Reception hosted by Ministry of Tourism of the Republic of Indonesia

September 8 (Thursday)

Seller-Meet-Buyer Open Hall Session Business Sessions Trade Visitor Registration Social Hour at Network Lounge Dinner Reception & Late Night Function

PATA INDONESIA Menara Batavia 25th Floor, Jl. K.H. Mas Mansyur Kav. 126 Jakarta 10220, INDONESIA

September 9 (Friday)

Trade Visitor Registration PTM Talks Business Sessions Social Hour at Network Lounge Dinner Reception

September 10 (Saturday)

Departure/Post-Mart and Optional Tours

The programme is subject to change. Please visit www.PATA.org/mart for Online Registration or email PTM@PATA.org for programme updates. PATA PARTNER

Hosted by

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Tel: +62 21 572 7337 Fax Email

: +62 21 572 7338 : pata.chapterindonesia@gmail.com purnomo@pataindonesia.org Website : www.pataindonesia.org

Lately industry players in the Greater Jakarta area began to concern. They complain of labor high wages, not to mention the demonstration if there is a problem that disrupts the productive working hours. Some employers think to relocate its productions plants, but where? “We are a labor intensive enterprise. In Jakarta and surrounding areas the cost of labor is too high, it’s hard for us to grow. Also many demos during working hours, making it inefficient,” said a chief executive officer (CEO) at an economic semi-

nar in Jakarta recently. According to the Advisory Board Chairman of the Employers’ Association of Indonesia (APINDO) Sofjan Wanandi, about 40 companies of garment, textile and footwear are trying to relocate their businesses. Most of those companies eye Central Java. Central Java government itself has provided integrated industrial zone in Kendal, strategically located as it is close to the international port and airport and is located on the northern coast line as the main route of distri-

bution in Java. The development and management of the zone is entrusted to Setyono Djuandi Darmono, founder of PT Jababeka Tbk. who cooperates with Singaporean company SembCorp. This cooperation is expected to create the zone into a township like Singapore that can be called Kendal Singapore City. Referring to Jababeka area that has become a self-sufficient township, the initial development in Kendal also began with the industrial area which is divided into clusters for the industry from upstream to downstream.

According to Chairman of the Indonesian Food and Beverage Association (GAPMMI) Adhi S. Lukman, the cluster system from upstream to downstream in the industry is crucial to ensure the continuity of supply of raw materials. Kendal is very suitable to realize the industrial clusters from upstream to downstream since the infrastructures there support it, he added. Although there have been four industries that have started construction of their production facilities, ie furniture, food, garment and wood, but the cluster

being encouraged is textiles and textile products with a land allocation of 100 hectares from the total area of 2,700 hectares. “In this area there will be established an integrated Fashion City,” said Industry Minister Airlangga Hartanto said after meeting with the Director of Kendal Industrial Park Hyanto Wihadhi at the Ministry of Industry, Jakarta, on Monday (8/8). A number of policies have been carried out by the local administration to support the development of the zone. The process in taking care permits has been simplified under the one stop service facility and to be finished in 3 hours. Central Java Governor Ganjar Pranowo has ordered to connect the port of Tanjung Kendal with the zone and increase the number of vocational schools for a continuous supply of skilled labor. The provision of low cost public facilities of healthcare, education and transportation modes have made labor cost there cheaper. So basically there are five compelling reasons to invest in Kendal Singapore City. 1. Skilled but cheaper labors. 2. Location is strategic. 3. Supported by international partner (SembCorp) 4. Fully supported by local and central government. 5. The cluster system from upstream to downstream will create efficiencies. continued to... B2

President Jokowi Urges Non-APBN Resources for Financing Infrastructure President Jokowi has urged to seek resources other than state budget (APBN) to finance the infrastructure projects. That issue has also been discussed with National Development Planning (Bappenas) Minister Bambang Brodjonegoro. “Earlier I talked with Minister of Bappenas regarding nonAPBN financing resources,” said Jokowi in the Presidential Office on Friday (12 August). “We hope that the non-APBN resources will be able to accelerate the completion of the projects,” he added. One subject under discussion between President Jokowi and the Minister of Bappenas was about the inventory of the nonAPBN resources. From the in-

ventory, it came up Tax Amnesty and pension funds as the top two in the list. “The most important thing is that the regulation about it has to be drafted right away, so that the funds can be used directly to finance the projects soon,” said Jokowi. Finance Minister Sri Mulyani supported the idea of using the non-APBN resources to finance infrastructure project, as it will inflate the budget allocation for social purposes. “The main point needs to be considered is to alleviate poverty. So there has to be synergy there,” she said. Moreover, nonAPBN fund resources have a big potential so they need to be used optimally.(igt)

President of the Republic of Indonesia, Joko Widodo at the Kalibata National Heroes Cemetery, Wednesday (8/17)

Garuda Indonesia To Open Flight Route to USA Early 2017 Let’s make the remembrance of the Republic of Indonesia Independence Proclamation 71st Anniversary as an inspiration for all of us to beat competition, win humanity, and make advancements together for an advanced Indonesia’ President Joko Widodo

Garuda Indonesia Airlines plans to open a route to the United States at the beginning of 2017.

Vice President of Corporate Communications for Garuda Indonesia, Benny Butarbutar, said that currently the company is in the process of planning and calculating the flight route to the United States. “Actually, the route to America is included in our 5-year strategic planning. We will calculate it to see if our flight to the USA is profitable or not. The calculation will include the route itself, the kinds of plane, the transit locations, and the arrival city whether Los Angeles or New York,” he

said as being quoted by Kompas. com in Terminal 3 of the Soerkarno Hatta Airport, Tangerang, on Monday (15 August 2016). Benny explained that his company plans to schedule a flight route to America about 2-3 times per week. He also said that the company will not make any additional plane for the flight route to the United States. To fly to the United States, he said, Garuda will use a Boeing 747 plane. “The plane is already there. Later in the strategic planning,

we will calculate how many crew members, pilot team members, and flight attendants are needed,” he said. According to Benny, by having a flight route to the United States, it will increase the revenue for Garuda Indonesia. However, he declined to mention the exact figure of the revenue increase. “Clearly, next year we can fly to the United States, because we have already earned the trust of the people,” he concluded. As it is known, the Ministry of

Transportation (Kemenhub) stated that Indonesia has officially received a category I in the recognition from the United States flight authority, represented by the Federal Aviation Administration (FAA). By achieving this category, Kemenhub called on all Indonesian airlines to prepare for serving flights to the United States. (awp)

A2 | August 2016 | Vol. 5 No. 38

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Highlights

Welcoming the 71st Independence Day of the Republic of Indonesia, President: We Pledge an Oath on Behalf of the Struggle of Our Heroes presidenri.go.id

Exactly at 12:00 AM, on Wednesday (17 August), the President of the Republic of Indonesia (RI), Joko Widodo (Jokowi), officially conducted a holy remembrance event at the Kalibata National Heroes Cemetery, in South Jakarta. In his speech to open the holy remembrance event, Jokowi emphasized that the day of Indonesia’s 71st Independence Day is used to show respect to the heroes of the past. “For the unknown heroes, in cities, in village, and in valleys and gorges, we show respect,” said Jokowi in his speech, in the National Heroes’ Cemetery, South Jakarta, on Wednesday (17 August). In the same occasion, Jokowi stated that Independence Day is used to show that Indonesian people’s struggle is not over. “We pledge an oath on behalf of the struggle of our heroes,” concluded Jokowi. The holy commemorative event that was conducted by Jokowi finished exactly at 12:12 AM. (ist)

President of the Republic of Indonesia, Joko Widodo at the Kalibata National Heroes Cemetery, Wednesday (8/17)

President Joko Widodo’s Speech at The 2016 Annual Meeting of the People’s Consultative Assembly (MPR) redaksikota.com

President Joko Widodo at the annual meeting of the People’s Consultative Assembly (MPR).

Bismillahirrahmanirrahim, Assalamu’alaikum Warahmatullahi Wabarakatuh, Greetings, Peace, and Welfare for all of us, Om Swastiastu, Namo Buddhaya, all of those whom I respect, all citizens of Indonesia, from Sabang to Merauke, from Miangas to Rote; for all those I respect Heads, Vice Heads, and members of the Republic of Indonesia House of Representatives; I respect the Heads, Vice Heads, and members of state organizations; I respect the Ministers and Non-Ministry Government Organizational Leaders; I respect Ibu Megawati Soekarnoputri, the 5th President of the Republic of Indonesia; I respect Bapak Try Sutrisno; I respect Bapak Boediono along with Ibu Herawati Boediono; I respect Ibu Shinta Nuriyah Abdurrahman Wahid; I respect the Country Ambassadors and International Organizations and Representative Leadership, my Indonesian brothers and sisters, I respect your presence, Praise and gratitude to the presence of God Almighty because of His mercy and pleasure we can attend the Republic of Indonesia People’s Representative Assembly Annual Court. In front of this honorable court, I convey my gratitude and deep felt appreciation to all the state institutions. The mutual cooperation, compactness, and working together up until now have facilitated our effort in conducting the will of the people. My honorable guests, now we are in a global competition era. Competition between countries is incredibly intense, very fierce. To overcome this competition, to become a winning nation, we must be brave to leave our safe zone. We must be creative, be optimistic, work together, and make breakthroughs. We must do all of this to hasten national building, in order to improve our competiveness as a nation.

If we are not brave to leave our comfort zone, we will continue to be blocked by poverty, unemployment, as well as social inequalities and injustices. Breakthrough steps are needed, work efficiency is needed, and strong and effective state institutions are needed to overcome the three main problems of the nation. Besides that, determination is needed in supporting the national ideology, state constitution, and national priorities. Without that, our greatness as a nation will become extinct; it will be swept away by the tides of history. We do not want that to happen! We do not want that to happen! We appreciate the progress of the People’s Representative Assembly, which continues to expand socialization, testing, and absorbing the people’s aspirations about implementing Pancasila values, the 1945 Constitution, the Unity of the Republic of Indonesia, and Unity in Diversity. We also are appreciative of the People’s Representative Assembly for their ideas to test the longterm national building planning system. In this global competition era, we hope these kinds of tests can support a more integrated planned building, with future insight, and sustainability. For my friends I respect, we also give appreciation to the Republic of Indonesia People’s Representative Assembly which upholds the 1945 Constitution to conduct legislative, financial, and supervisory functions. In conducting the legislative function, we realize that what is important is not how many mandates are made into official amendments, but the quality and uses of those amendments are what matters most. In 2016, the People’s Representative Assembly along with the Government has finished 10 Amend-

ment Drafts to be officiated to become Amendments, including an Amendment regarding Public Housing Savings which guarantees needs will be fulfilled for places worthy to stay in and affordable for society; an Amendment regarding Tax Amnesty which supports state revenue sources; as well as an Amendment regarding Protection and Enrichment of Fishermen, Fish Cultivation, and Salt Farmers as part of an effort to advance prosperity for fishermen as well as the maritime sector in Indonesia. In conducting the budget, the People’s Representative Assembly along with the Government is attempting to discuss an amendment draft regarding APBN for the 2017 budget and an amendment draft regarding Accountability for Conducting the 2015 APBN. The People’s Representative Assembly and the Government are committed to make sure that the 2017 budget is arranged meticulously to improve the well-being of society. This budget must follow a priority program. It can no longer be divided equally to work units. Next, in conducting the supervisory function, the People’s Representative Assembly has already encouraged optimizing checking the Financial Advisory Board (BPK), as well as optimizing the role of the commission and the board members. The People’s Representative Assembly has also already tested the feasibility and adherence of state officials that were put forward by the Government. Alhamdulillah, the Head of the Police, KPK Leadership, and Ombudsman RI Leadership have all been appointed in the last several months. I respect you in attendance. The quality of using the development budget is also the task and function of the Financial Advisory Body (BPK). Since 2015, BPK has applied actual based Government Accountability Standards in reporting the government’s finances. For over one year, this standard has been applied. Information about accountability in conducting APBN in the government financial report is presented to be more transparent and accountable. BPK gives attention and priority in checking the programs that can increase society’s prosperity. The BPK’s examination results are expected to be utilized by representative bodies, the government, and other stakeholders to make decisions based on their respective tasks and authority, in order to reach the state’s goals. I respect you in attendance. In line with the government’s effort to strive for regional aspirations, the Republic of Indonesia’s People’s Representative Assembly (DPD RI) has revised its roles, tasks, and functions according to the constitutional mandates. DPD is already an active participant in improving the quality of regional elections, quickening building state borders, as well as being involved in social protection. DPD also supports creative economic development until ending problems with violence towards kids and teenagers. We also are appreciative for the commitment of DPD in supporting the Tax Amnesty policy, improving the Regional Development Bank, and developing cooperatives. For the honorable Head and Members of the Assembly, in supporting hastening a democratic consolidation based on a legal framework of justice, we are grateful to the Supreme Court, the Constitutional Court, and the Judicial Commission for continuing to improve their work performance. The productivity in deciding cases in the Supreme Court until the end of 2015 is the highest in the history of the Supreme Court. The remaining court cases at the end of 2015 were the lowest in history. This means that court case delays were

consistently able to be reduced. From the side of time, about 12,000 cases or 82 percent were decided by the Supreme Court based on the established time, which is less than three months. At this time, there are 1.8 million court decisions from the first level, until cassation decisions and appeals at the Supreme Court. Meanwhile, information about handling cases at the first level of the court, at the appeals level for four justice environments all over Indonesia, and the Supreme Court are also available at each court location. Thus, public access towards case processes in courts is wider. Besides that, to realize an Integrated Justice Court System, an information technology based database is developed. My honorable friends, besides the Supreme Court, the Constitutional Court also has consistent work performance in handling cases with set standards. From August 2015 until July 2016, there have already been 244 constitution case requests. From that total, 92 cases are constitution experiments, one case is a State Institution Authority Dispute (SKLN), and the remaining 151 cases are about Governor, Regent, and Mayoral elections. Related with constitution testing cases, the Constitutional Court has made a new legal policy that contains assurance, truth, and constitutional justice dimensions. Then related to simultaneous election contention cases, the Constitutional Court has decided 151 Governor, Regent, and Mayoral election cases from a total of 268 elections. In the future, the Constitutional Court will make the initiative to expand applying technology in deciding on and determining cases. My fellow citizens of Indonesia, the Judicial Commission has already strived to conduct its tasks and functions in preserving and upholding respect, unity, dignity, and judicial behavior. One of these is by improving the quality of selecting Justices. Until the first semester of 2016, there have already been 5 Justice candidates and 2 ad hoc Criminal Justice Corruption candidates chosen. Thus, the sanction impositions are strict for judges who break the law and will be continually enforced, in an effort to show the Judicial Commission commitment in supporting justice reformation and an authoritative legal culture. For the happy audience members in attendance, in concluding this speech, I encourage the state leadership and institution members to have synergy, to keep listening to criticisms from society, and to continue to improve yourselves, in order that our institutions can be more trusted by society. Let’s make the remembrance of the Republic of Indonesia Independence Proclamation 71st Anniversary as an inspiration for all of us to beat competition, win humanity, and make advancements together for an advanced Indonesia. Long live the Republic of Indonesia! Long live the Pancasila State! Thank you, Wassalamualaikum Warahmatullahi Wabarakatuh, Om Shanti Shanti Shanti Om, Namo Buddhaya. Jakarta, 16 August 2016 PRESIDENT OF THE REPUBLIC OF INDONESIA, JOKO WIDODO

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August 2016 | Vol. 5 No. 38 | A3

Ministry Log Minister Airlangga Maximizes Weaving Fabric Industry in Indonesia majalah365.com

Minister of Industry Airlangga Hartanto

Minister of Industry Airlangga Hartanto has been encouraging the small and medium enterprises (SME) running handmade woven fabric to maximize the use of natural resources as the raw materials. This effort is expected to lead the industry to become independent in term of raw material supplies. In addition, the Ministry of Industry has also focused on pushing the growth and development of the woven fabric SMEs in the country through various ways ranging from technical guidance training, start-up machinery equipment aids, provision of expert assistance to marketing. “We also encourage them to make use the Big Hall of the Ministry of Industry to find solutions to the problems in production and in improving productivity through research and development activities,” said Airlangga in Jakarta on Tuesday (9/8). In Indonesia there are two superior products that are well known to foreign countries, namely batik and woven fabric. Airlangga said, the products of woven fabric contribute significantly to the performance of the national fashion industry. In 2015, the Indonesian fashion products have managed to gain a large market share on a global scale with an export value reached 7.28 billion US dollars. “As the weaving technology is getting better, we will push to open the opportunity for the products to get into the international market,” said Airlangga. He further explained that woven fabric basically is created in a variety of colors, patterns and ornaments. It also has a close association with people’s believe, natural environment as well as for being an important part to represent the cultural and social value which is developing by the time. In terms of function, woven fabric has a variety of uses, among others, as the traditional ceremonial clothes, as a dowry in marriage as well as a social status symbol. The potential of woven fabric has spread almost evenly across all regions in Indonesia, starting from Ulos in North Sumatra, Troso in Jepara, Endek in Bali, Rote in East Nusa Tenggara. “The creativity of the weaving artisans scattered throughout the archipelago produces a distinctive design of each which becomes a cultural pattern,” said Airlangga.(ist)

PUBLISHER S. D. Darmono COMMISSIONER Agus Canny, Muljadi Suganda SENIOR ADVISOR Yuwono Sudarsono, Ermaya Suradinata, Sugiharto, Bacelius Ruru, Komaruddin Hidayat, Cosmas Batubara, George Hadi Santoso, Scott Younger, Ali Basyah Suryo, Atmono Suryo

Minister of Maritime Affairs and Fisheries Susi Pudjiastuti has stated that the investment in the marine and fisheries sector right now has rightly been in shape and no longer as like in the earlier era which resulted in illegal fishing. “Now the government makes the investments in fishing closed to foreigners but open the processing plants for up to 100% for foreigners. This is what is correct and in accordance with the government’s mission to make the Indonesian waters as the nation’s future,” she said on Tuesday (9/8). According to her, nearly for two decades foreign capital companies were allowed 100% investment in fishing but instead made it “pro illegal fishing” as they brought in the ships, made false factories, catching the fish and transshipped the catches in the middle of the sea. Besides, she added, in the past the catches from Indonesian waters were taken to their respective country of the investors by a “trumper” or a carrier that can be sized between 1,000 to 10,000 gross tonnage (GT). “What happened was that 1,300 permits of fishing vessel

were duplicated, in reality there were more than 10,000 fishing boats from neighboring countries fishing in our seas. Several thousand ships were even without permits at all,” she said. With such an investment model earlier, she argued that Indonesian waters had become a free zone in dredging cash from fish and shrimp commodities as well as being a place for smuggling textiles, alcohol, and drugs. As a result, she further said that the Indonesian fisheries sector in the period of 2003 to 2015 had lost 115 processing plants which were closed or went bankrupt because there were no raw materials, while the fishermen household was reduced by 50 percent from 1.6 million to about 800,000. On a previous occasion, the Secretary General of the People’s Coalition for Fishery Justice (Kiara) Abdul Halim expressed his expectation that Minister Susi could raise the investment funds from the mutual aid money collected in the groups of fishermen and not only rely on the foreign parties as investors. “The Minister of Maritime Affairs and Fisheries is not confident enough to raise investment

kkp.go.id

Minister of Maritime Affairs and Fisheries Susi Pudjiastuti

funds from the people, especially individual fishermen and fishing cooperatives,” said Abdul Halim. According to him, it would be better if the financing mode of strategic projects with high value to lives of many people, the

source can be raised from the people through cooperatives. He argued that through that way, the aspect of state sovereignty would also go hand in hand with this aspect of self-sufficiency and prosperity.(ist)

Head of BKPM Thomas Lembong Eyes Investment in Tourism Sector nawacita.com

Head of BKPM Thomas Lembong

Head of the Investment Coordinating Board (BKPM) Thomas Lembong wants to encourage investment in the tourism sector. This is in line with the government program to create 10 new tourist destinations in the country. “I want to take a look at the tourism sector,” said Thomas in the BKPM office, Jakarta, on Monday (8/8). Thomas assessed that over the next three years the tourist arrivals will continue to flock to Indonesia. That is why a lot of tourism investors are needed to

develop a wide range of tourist destinations. Thomas explained in addition to the tourism sector, the industry of petrochemical, steel, and metals are also urgently needed in the country. That is because President Jokowi has been instructed to push the downstream industry and production in the country to reduce the dependence on imported raw materials. “We must look at strategic projects. Such as steel, petrochemicals, and metals. There will also be developed, the steel

industry and other alternative components,” he said. Thomas added all the flow of investment must be based on accurate data. So the investor’s decision would not be a misstep. “I want the investors to use the data of Central Bureau of Statistics (BPS) to find which sectors are in need of investment and which ones are not,” said Thomas.(awp)

Minister Sri Mulyani Expands Scopes of Tax Amnesty Investment to Real Sector bp.blogspot.com

CHIEF EXECUTIVE OFFICER AND EDITOR IN CHIEF Rachmat Wirasena Suryo EDITORIAL SECRETARY Erni S. Bermansyah DEPUTY EDITOR IN CHIEF Arya Mandala, Dhiyan W. Wibowo, Robert J. EDITOR Achmad Fadli, Irvan Ali, Meutia Febrina, Khodijah Febriyani ART DIRECTOR Mohamad Akmal, Jourdan Shafira WEB MANAGER Arief Natanegara PHOTOGRAPHER Rians Rivco SALES AND MARKETING MANAGER Nina Karlita ASSISTANT MANAGER Erni Imansyah BUSINESS DEVELOPMENT Dessy Yulieta SALES AND MARKETING Citra Arinda M., Marmis Rivera, Dwi Yuwanti CUSTOMER RELATIONSHIP Mirna Rumapea, Rangga Wiraspati, Puteri Anjatsari

Minister Susi: Investment in Marine and Fisheries Sector Currently Right in Shape

Minister of Finance Sri Mulyani

The government officially expands the scope of investment for the tax amnesty participants by including a number of business fields in the real sector in the list of repatriation funds receivers. The real sector, which could be a receiver for the repatriation investment funds, includes infrastructure through the cooperation between the government and business entities, real sector based on the priorities set by the Government in the Medium Term Development Plan National, property in the form of land and/or buildings constructed on it, but does not include the ones subsidized by the Government, direct investments in companies in Indonesia, precious metals in the form of gold bars/bullion produced in Indonesia with gold content 99.99 percent and ISO certified, other investments outside the financial markets legitimate in accordance with the provisions of the legislation. The investment details in the

real sector is stipulated in the Regulation of Minister of Finance No. 122/PMK.08/2016 on Procedures for Transfer of Assets of Taxpayers in the Territory of the Republic of Indonesia and the Placement of Investment Outside the Financial Market in the Context of the Tax Amnesty. The regulation which was signed by Finance Minister Sri Mulyani Indrawati on August 8, 2016 states that the repatriation assets, both inside and outside the country, can be carried out after December 31, 2016 or before the Certificate of Tax Amnesty (SKPP) is published. The provision on the time period of investment is still the same, namely a minimum of three years since the funds are transferred to a designated bank. However, the transfer of assets through the designated bank shall be attested by the competent authority. The investment of repatriation funds cannot be transferred

abroad before three years. The transfer of investment assets can only be done in the country through the transactions of sale and purchase or other commercial activities.The policy also emphasizes the liabilities of tax amnesty participants to open a special bank account in the designated banks appointed by the government as a gateway, which includes the respective bank branches overseas. The taxpayers are also possible to transfer their funds to another designated banks appointed by the government as a gateway. Sri Mulyani Indrawati in the regulation also allows the tax amnesty participants to withdraw the profits from their investments each year in the first quarter. Collateral of Credit

ty participants to obtain credit funds from a designated gateway bank. Related to that issue, the designated banks shall report the opening of any special account and the transfer of the repatriation funds to the Directorate General of Taxation (DGT), including the development of investment each month. In order to enhance the investment scheme, Sri Mulyani Indrawati also publishes the Regulation of Minister of Finance Number 123/PMK.08/2016, as a revision to the relating regulation issued earlier, the regulation Number 119/PMK.08/2016 on Procedures for Transfer of Assets of Taxpayers Into the Unitary Republic of Indonesia and the Placement of Investment Instruments in Financial Market in the Context of the Tax Amnesty.(mmn)

The regulation allows the investment assets to be used as collaterals by the tax amnes-

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Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono

Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono has targeted to build 690 thousand units of public houses until the end of the year. By August, 400 thousand units have been built. Minister Basuki added that the PUPR Ministry has been committed to provide appropriate houses at affordable prices for the people of Indonesia. “Not only about the target, but houses for the people,” Minister Basuki said when opening Indonesia Property Expo (IPEX) 2016 organized by Bank Tabungan Negara (BTN) at the Jakarta Convention Center (JCC), Jakarta, on Saturday (13/8). “This August, according to the reports, there are already 400 thousand houses. We continually strive to provide the houses needed by the people. Hopefully by the end of the year the target of 690 thousand houses can be achieved,” added Minister Basuki. Basuki Minister appreciated BTN by describing it as the only bank that is consistent in disbursing credits for public houses to the people in easy ways. “Again with this cooperation, it shows BTN as an idealistic bank, showing its consistency as a housing bank for Indonesia,” he said. Earlier, Director of Utilization of Financing Resources for Housing at the Directorate General of

Financing of Housing, Ministry of Public Works and Public Housing (PUPR), Baby Setiawati Dipokusumo said the realization of new houses for Low Income Communities (MBR) has reached 179,718 units. “While the target is 700,000 units. The houses for non MBR have been built as many as 51,084 units, the target is 300,000 units,” she said. The figure was based on the banking records on the mortgage proposals both subsidized and nonsubsidized. This includes national and regional banks, as well as the development data through the state budget and the plans through the local budget. Baby said that the obstacles still faced by the developers in realizing the public housing program is the classic problem of supply and provision of land. As a result, the constructions of public housing are in locations that are less strategic, because of the high prices of land. Other barrier, added Baby, there are still too many regulations and permits have to be taken care of by the developers. Not to mention the overlapping regulations between the local and central government.(jjo)

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Event Review Presiden Jokowi Sets 1,921 State Civil Servants To Be Mentality Revolution Agents President Jokowi has challenged the graduates of the Institute of Public Administration (IPDN) to create breakthroughs in the services of the community. Jokowi said he did not want the IPDN graduates to be complacent with the old system and drifted in mere routine. Instead there should be a breakthrough so that the public increasingly believes in the state civil servants. “You all should become personals in forefront in the revolution of mentality and character, changes in mindset, as well as changes to the better system and governance. You also have to be an example to the people, building an optimistic attitude, an innovative attitude, an attitude which dares to make a breakthrough, beneficial for the people,” said Jokowi in his briefing at IPDN Jatinangor, Sumedang, West Java on Monday, August 8, 2016. Jokowi reminded that the state civil servants will face the challenge of increasingly heavy tasks and more complex. Even the expectations and demands on the performance of state civil servants are also higher. People want more integrity, more effective and more qualified state civil servants. Not only that, the competition in the era of globalization is also high as seen from the changes which happen very quickly. Thus, according to Jokowi, it is needed state civil servants who can work more responsive, faster, able to provide public services with excellence, and constantly innovating to strengthen the nation’s competitiveness. “I believe you are able to carry out the tasks from the nation and state to the best as long as you want to, you dare to make self-improvements, initiate changes, as well as be bold to move bureaucratic reform in your respective working environments,” said Jokowi. The key, said Jokowi, is that IPDN graduates also must have the courage to revamp creative reshuffles, productive breakthroughs, not stuck in a routine, not oriented solely on the procedure, but emphasize more on the results and the real works for the people. He called on the state civil servants to uphold the commitment to realize a clean government, high integrity, and free of corruption and nepotism. By that way the state civil servants will be more credible to the people. “I congratulate you on your new duty as the state civil servants. Serve the people, the nation and the country. May God Almighty be with us all,” said Jokowi.

Jababeka Wins Award from IDX In Program of ‘Let’s Saving In Stocks’ Finance Minister Sri Mulyani has presented an award to PT Jababeka Tbk (KIJA), represented by Corporate Secretary Muljadi Suganda and VP Human Resources Reza Widyaprastha, for its commitment in supporting the campaign of “Let’s Saving in Stocks” at the 39th anniversary of Indonesian Capital Market, in the IDX Building, Jakarta,

ITBC Cooperation with Taipei City Association After the success of the trade mission in India, the government of New Taipei via New Taipei City Industries Association (NTCIA) together with the Taiwan External Trade Development Council (TAITRA) bring a delegation comprising 15 businessmen from the best suppliers from Taiwan to Indonesia. Their presence in order to build business partnerships to boost trade between the two countries. Commissioner of the Department of Economic Development Government of New Taipei City, Wei Chuan Shih, said, with a very promising market opportunity, Indonesia become one of the targeted investment destination by the New Taipei City businessman. “The business delegation and businesses whose primary objective is to explore partnerships with businesses in Indonesia. We hope that can continue to improve trade and business cooperation between Indonesia and Taiwan,” Chuan said in a written statement, Jakarta, Saturday (6/8). Meanwhile, representatives of Indonesia Taiwan Business Council (ITBC) who is also the President Commissioner of PT Jababeka Tbk,

Setyono Djuandi Darmono, said the trade mission of the Government of New Taipei City indicates Indonesia is a country that is attractive to investors. “There are thousands of companies that are in coordination Taiwan New City. Although it is a new beginning, but the opportunities greater investment in the future. Moreover, Indonesia and Taiwan so far has had a good relationship,” said Darmono. This partnership, he added, in accordance with the expectations of President Joko Widodo (Jokowi) which continue to increase investment in Indonesia. “Moreover, their presence in Indonesia are also expected to improve the balance of trade between the two countries. As well as to learn about the industry and their advanced technology and qualified,” Darmono added.

on Wednesday (10/8). This award is a token of appreciation of the Indonesia Stock Exchange (IDX) to PT Jababeka Tbk in facilitating employees to become equity investors by purchasing shares at the Indonesia Stock Exchange.

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August 2016 | Vol. 5 No. 38 | A5

GAIKINDO International Indonesia Auto Show 2016 GAIKINDO International Indonesian Auto Show 2016 (GIIAS 2016) Photo by: Muljadi Suganda

International automotive exhibition, GAIKINDO Indonesia International Auto Show (GIIAS) 2016 has been taking place from the 11th of August 21 held at Indonesia Convention Exhibition (ICE), BSD City, Tangerang. Through World Class Auto Show Series, GAIKINDO invites the automotive industry in Indonesia and visitors to adopt environmentally friendly driving style at once using green technology, in accordance with the theme of Green Technology for a Better Future. GIIAS 2016 aims to establish the name of Indonesia in automotive world stage through international automotive exhibition. This exhibition is the only automotive exhibition in Indonesia fully supported by OICA (Organisation Internationale des Constructeurs dAutomobiles), the international umbrella organization of the world automotive exhibition. GIIAS 2016 exhibition closed on Sunday (21/8), noting the number of visitors as many as 456 517 people. With the highest number of visitors reached 62,067 people on Wednesday, August 17, 2016. Total of 25 brand car sales totaled 16,334 units with a transaction value of Rp. 4,8 T.

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Tourism

55 Countries Will Participate in the PATA Travel Mart 2016 The President Post

CEO PATA Indonesia Chapter Poernomo Siswoprasetijo with Head of Sales and Marketing ICE Siti Karmila (tengah) and President Director Deutshe Messe Venue Operations Aage Hansen.

Indonesia received a great honor to become the host of the largest tourism exhibition in the Asia Pacific, the PATA Travel Mart (PTM) 2016. The PTM 2016 will be held at the Indonesia Convention Exhibition (ICE), Bumi Serpong Damai (BSD), Banten Province, Indonesia, on 7-9 September 2016.

“This is a grand event and very prestigious for Indonesia,” stated the Deputy of Foreign Tourism Marketing Development, Professor I Gde Pitana. “Certainly this is a big event, because from the newest data that was received by the Ministry of Tourism from PATA on 1 August, the sellers confirmed there are 203 organizations from 33 countries, while there are 246 buyers from 56 countries,” he added. This event will become more prestigious, as PATA confirmed that international media will cover the event with 35 registered media delegates, who consist of 33 international media. Then there will be 2 nation-

Government Eases Regulations About Flying Private Jets

al media from 14 countries, 21 organizations, and 12 bloggers. “So there will be thousands of delegates present and dozens of countries joining. We have been well-prepared since several months ago by the Ministry of Tourism team. For the first step, we will meet the press in the Ministry of Tourism office on 11 August 2016. It will be attended by the Minister of Tourism, Arief Yahya,” stated Pitana. This PTM 2016 event has strong credibility and is recognized by the tourism industry worldwide. PATA has been in existence since 1951, as a non-profit association. It is a catalyst for responsible travel and tourism

development. The members of PATA consist of 95 government, municipal, and state tourism agencies; 29 international development, airport, and maritime companies; 63 educational institutions; and hundreds of travel industry companies. Pitana revealed that PATA Travel Mart is the major commerce exhibition tourism in the Asia Pacific, showing many tourism interconnected networks, which provide good opportunities to help Indonesia’s tourism. “The technique is to access decision making, meet new clients, expand networks, and build or maintain existing relationships. It has a really positive impact,” he said. “PTM is held every year in September. PTM presents tourism products and services from the Asia Pacific regional market,” he stated. “Pata Travel Mart is prestigious because this event opens great business opportunities. It is held for two whole days with meetings between buyers and sellers. We feel honored to be the host, while previously it was held in Bangalore, India, in 2015,” he added. The Minister of Tourism, Arief Yahya, attended and promoted ‘Wonderful Indonesia’ in Bangalore, India, at that time. Arief conveyed the uniqueness and beauty of Indonesia’s manmade attractions, nature, and culture. One of the attractions is culinary dishes, including sate, bakso (meatballs), and fried rice, which were endorsed by the President of the United States, Barack Obama, when he made a visit to Jakarta after being elected as the President. Hundreds of audience members from various nations were very enthusiastic at that time, because when Arief Yahya mentioned that President Obama liked those three culinary dishes, a video clip of the most important person in the USA was shown on the backdrop screen. Courtesy of YouTube, Obama was quick to mention fried rice, bakso, and sate, when reminiscing about his life while living in Menteng Jakarta.(ist)

PT Jababeka To Build 1,000 Hotel Rooms in SEZ Tanjung Lesung PT Jababeka plans to build 1,000 hotel rooms in Special Economic Zone (SEZ) Tanjung Lesung with the support of a South Korean investor, DW Development. The Director of Jababeka, Hyanto Wihadhi, stated that the number of hotel rooms in Tanjung Lesung is considered to be insufficient to accommodate the tourism needs in that region. Based on a Jababeka publication, as of March 2016, the land reserves owned by the corporate company in Tanjung Lesung reached 1,544 hectares with a total of 300 rooms managed. Hyanto stated that the company and DW Development already made a memorandum of understanding in June of 2016 in Seoul, South Korea. DW Development will invest financial capital in the amount of US $500 million in PT Banten West Java (BWJ) Tourism Development, a subsidiary of Jababeka, through a new stock issuing scheme.

We want to attract more tourists since Tanjung Lesung is already a special economic zone. We will build a theme park and golf course.’

As a result, DW Development will have 49% shares in Banten West Java. Nevertheless, at this time, DW Development has not completed its due diligence stage. “There is already a master plan. We just need to review it later. We hope we can do it as soon as possible,” Hyanto stated. Tourism visits to Tanjung Lesung are predicted to increase significantly, since President Jokowi singed Presidential Regulation No. 3/2016, highlighting the importance of the new emerging tourist destinations. President also targeted 3 years of completion by the state-owned company consortium to build the Serang–Panimbang toll road of 84 km. PT Kereta Api Indonesia (Persero) also plans to reopen the Serang–Labuhan train route. Building transportation infrastructure towards Tanjung Lesung is predicted to slash about 3.5 hours from Jakarta.(awp)

“Dieng Culture Festival” Visited by 100,000 Tourists

intisari-online.com

The government plans to ease restrictions on flying private jets to attract upper class tourists to Indonesia. According to the Head of Beach Tourism of the Ministry of Tourism, Sudirman Saad, the path that the government will take is by deregulating private jet aviation rules. “We want to amend the regulations to attract upper scale tourists to come to our region (Indonesia),” stated Sudirman in Batam, on Friday (12 August). At this time, private jet aviation regulations are under the authority of the Ministry of Communications (Kemenhub) through Ministry of Communications Regulation (Permenhub) Number 66 in 2015. Based on this regulation, there are 3 permits that have to be fulfilled by foreign unscheduled commercial flights like private jets. The conditions are they have to obtain a diplomatic clearance from the Ministry of Foreign Affairs (Kemenlu), security clearance from the Indonesian Armed Forces (TNI), and flight approval from the Ministry of Communications (Kemenhub). The regulations are designed to minimize infractions towards the sovereignty of state regions that are considered to disrupt the tourism sector that is trying to attract upper class tourists to come to Indonesia. The deregulation of private jet flights is also a consensus from a coordination meeting between the central government, regional governments, and Bank Indonesia that was held in Lombok. It is hoped that the deregulation with stimulate quicker tourism development, especially maritime tourism.(ist)

The Dieng Culture Festival (DCF), which was held on 5-7 August 2016, was a great success. About 100,000 domestic and foreign visitors came in throngs to see the “land above the clouds”. Performances by Cak Nun and Kiai Kanjeng, jazz music, and a braided hair cutting ceremony drew the attention of the visitors. All of the home stays and hotels in the Dieng area were packed to 100 percent capacity. Moreover, the camping ground area at the Arjuna Temple Complex, which was prepared to handle to full lodgings, was also full with visitors. DCF is a compilation of modern music, kids’ music, and middle-aged community music, which was handled by Emha Ainun Nadjib. In addition, there was also a shadow puppet (wayang) performance. “Welcome and I hope the 2016 Dieng Culture Festival (DCF) is a success. Hopefully, in the future it will be better organized and ordered,” stated the Minister of Tourism (Menpar), Arief Yahya, in Jakarta, a short time ago. In a separate location, a multicultural staff expert of the Minis-

try of Tourism (Kemenpar), Hari Untoro Drajat, stated that the festive atmosphere at Dieng resembled the Idul Fitri celebration. “The promoting was done well, so that visitors came to Dieng, which is high above the clouds,” he stated. “The event was a big success. All the tickets were sold, and the lodgings were full. DCF is very grateful to the Dieng residents,” added the Head of the Pandawa Dieng Tourism Community as well as Head of the VII DCF, Alif Fauzi, in Dieng, on Sunday (7 August). In his opinion, the ‘Jazz above the Clouds’ and cutting the braided children’s hair was able to draw the greatest attraction from the tourists. A special area that was prepared in front of the Arjuna Temple was jam packed with people. There were hardly any empty seats during DCF. “We already provided 4,000 seats. They were all full. Outside, there were even more seats. This was the best DCF,” he said. In the hair cutting procession, foreign tourists were intermixed with domestic tourists. They

were interested in witnessing the ceremony, which was joined by 11 children. A culture carnival from a Dieng elder’s house, Mbah Naryono, until a walking processing towards the Arjuna Temple complex, all were closely followed by thousands of visitors. “The braided hair children who were going to have their hair cut rode in a horse-drawn carriage. Many tourists wanted to have their pictures taken with the kids. The tourists thought the kids were very unique,” added Alif. This event was also attended by the Governor of Central Java, Ganjar Pranowo; the Regent of Banjarnegara, Sutedjo Slamet; the Vice Regent of Banjarnegara, Hadi Supeno; and invited guests. One of the long braided hair children, Adinda Wijayanty Putry (4), the daughter of Mahfudz and Linda Susanti, had the first opportunity to have her hair cut. This Depok resident from West Java asked Mbah Naryono to cut her hair directly. The Governor of Central Java also cut the hair of Madina Jauza Aina Effendy (6.5), the daugh-

ter of Bilal and Ayu, Bakal Village residents, Batur SubDistrict, Banjarnegara. After all of the long haired kids’ hair was cut, their hair strands were tossed into Telaga Warna (Lake of Colors), Dieng Plateau, Wonosobo Regency. “Cutting the long braids has to be done through a certain cutting, not just in any kind of way. If it is not done in a particular way, then the disheveled hair will grow back again and even become messier. It is very sacred. This has its own attraction,” he stated. Seeing the potential of this tourism, Ganjar stated he will foster the Dieng Plateau Tourism Region (KWDT) in Banjarnegara Regency and Wonosobo Regency, Central Java. “This has to be well-managed. Banjarnegara and Wonosobo cannot be treated as a bone of contention. In the future, there will be an entrance area from Batang, so that the management of Dieng must be done together as one region,” he said.(awp)

Palu Nomoni Festival, Government Will Present 50 Ambassadors The Palu Municipal Government (Pemkot), Central Sulawesi (Sulteng), is planning to present 50 state ambassadors in the Palu Nomoni Enchantment Festival (FPPN), which will be held in Palu, on 24-26 September 2016. “We have already sent invitations to 50 ambassadors to attend and see directly the Palu Nomoni Enchantment Festival,” said the Palu Vice Mayor, Sigit Purnomo Said, on Thursday (11 August). That former “Ungu” band vocalist stated that a number of

ambassadors have already confirmed their attendance, including the Ambassador of China, the Ambassador of Sweden, and the Ambassador of Hungary. “Besides promoting Palu as a top tourism destination in Central Sulawesi, this festival also strives to increase tourism visits, as this year the target is 500,000 domestic tourists and 25,000 foreign tourists,” he said. In his opinion, the Palu Bay Festival is not something new, as it has been held since 2008. The only thing different is the name

and the capacity of the activity. This man, who is commonly called Pasha “Ungu”, mentioned that Palu has a winding gulf, valley, and mountain range that extends from east to west, as well as a river that runs through the city. All of this shows the extraordinary natural beauty that cannot be found in other areas of Indonesia or even the world. Meanwhile, the Vice Head of the Palu Municipal People’s Assembly (DPRD), Erfandy Suyuti, requested that the Palu Municipality prepare its supporting

infrastructure well to anticipate the tourists who will come to this festival. “We hope that the tourists who come to this event will be impressed with Palu,” he said. He believes that Palu is a city with unique and natural sights in the world. It is not surprising that Palu is also known as the ‘city of four dimensions’.(jjo)

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A8 | August 2016 | Vol. 5 No. 38

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Travel

The Beautiful Underwater Enchantment of Morotai Island Morotai Island in the North Moluccas offers a tantalizing underwater natural enchantment. It has beautiful coral reefs with an abundance of magnificent occupants. The water around Morotai Island is one of the best destinations in Indonesia for travelers who enjoy diving. Diving in the clear blue and natural water of Morotai is a dream not to be missed for numerous domestic and overseas divers. Moreover, the Morotai region is included as a priority destination that will be developed by the Ministry of Tourism to become the ‘New Bali’, in order to attract many tourists. Of course, it will attract many travelers due to the access and facilities offered, in order that tourists will find it easier and more comfortable to take a trip to Morotai. Travelers who will take a vacation enjoying the underwater nature of Morotai can enjoy several special treats there. One of these is deep sea diving with depths of approximately 40 meters. Within these 40 meter depths, travelers can see the remnants of the Bristol Beaufort plane owned by the United States. It was used to bomb its enemies when the War of the Pacific raged. The propellers can still be seen from the wings and body of the plane, even though the plane is upside down. Especially for this diving spot, travelers must be very careful because they need to be skilled. Divers must go down in stages to certain depths, in predetermined time periods. Besides the remnants of the US plane, on Morotai Island there are also various other diving spots that are just as interesting. There are at least 25 diving spots which can be explored by travelers. Some of these include Tanjung Wayabula, Dodola Point, Batu Layar Point, Tanjung Sabatai Point, and Saminyamau. All of the diving sites at Morotai have their own superiorities. Especially for travelers who want to ‘hunt’ for schools of sharks, Tanjung Gorango and Black Tip Point are highly recommended. Several snorkeling spots are also found around Dodola Island. You will certainly not run out of diving spots around Morotai Island. It has officially become part of the Special Economic Region in this tourism sector. It should be put on a ‘must see’ travel destination list at some time in the future.(mmn)

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travelaroundindonesia.blogspot.com

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Baduy Tourism Has Global Potential The Baduy tourism object in the rural part of Lebak Regency, Banten Province, has global potential because it has a unique cultural value in Indonesia. “We hope that the regional government builds its infrastructure to reel in local and foreign tourists,” said the Head of the Banten Pamungkas Non-Government Organization, Sholeh Majid, in Lebak, on Saturday (23 July). At this time, the infrastructure condition is minimal for the Baduy society, so that it affects tourism visits. The infrastructure that needs to be built includes roads, a commerce center region, lodging, clean water access, electricity, and means of communication. Tourists who want to visit Baduy society complain about the lodging and road conditions. Therefore, he hopes that the government can construct this building infrastructure. “We are certain that building that infrastructure can boost visits to Baduy traditional tourism objects,” he said. Sholeh explained that at this time Baduy cultural tourism has a global selling value, like the Aboriginal tribal community in Australia, the Amish people in the United States, or the Inca tribe in Machu Picchu Peru. The Baduy society cultural treasures are interesting enough to do anthropological research, because up until now the society’s lives still retain their ances-

tors’ customs and traditions. Even until now, the Baduy society still holds on to their traditions and rejects modern life. “We are certain that in the future many anthropologists will come to Baduy to conduct research,” he stated. The Head of the Lebak Regency Youth, Sports, and Tourism Agency, Syahida, stated that nowadays the Baduy tourism object is quite remarkable as a Lebak tourism icon and can draw investors from the tourism sector. The potential of the Baduy tourism object also cannot be found in all areas of Indonesia with isolated tribes. Therefore, she is certain that the Baduy tourism object can become global, because it has cultural values, traditions, as well as sustainable and green nature. Until now, the Baduy society loves its forests and lands with natural vegetation and conservation. Moreover, the Baduy society forbids felling trees, because it can cause a natural disaster or catastrophe. “We keep trying to encourage domestic and foreign tourists to visit the Baduy region,” she said. According to Syahida, a superiority of the Baduy society until now is that they still follow their traditions and reject a modern lifestyle. The forest region that is inhabited by the Baduy society is 5,100 hectares with no roads, electricity, televisions, radios, or vehicles.

kedaiwisata.com

Moreover, when the Baduy people go outside their region, they wear white attire and have to go on foot. It is forbidden to travel by vehicle. The regional government will plan Baduy tourism to become part of the Regional Tourism Development Master Plan. This tourism development will be arranged through an integrated development with infrastructure, lodgings, and a commerce center. Besides that, the Baduy tribe

handmade products are rather unique, such as various kinds of souvenirs, koja bags (made from tree bark), golok (a cutting tool), tenun (woven cloth), and gula aren (palm sugar). “I am sure that if it is built in an integrated manner in Baduy region, it will become a worldwide tourism object,” stated Syahida. Endi Suhendi of Leuwidamar Sub-District, Lebak Regency, stated that the regional government continues to build Baduy

culture tourism objects from Rangkasbitung until Ciboleger or the main entrance into the Baduy region. Domestic tourism visits until now have reached 6,849 people with 158 foreigners coming from the Netherlands, England, and Switzerland. “Many of the tourists come for conservation purposes or to learn about the local culture,” said Endi. (awp)

August 2016 | Vol. 5 No. 38 | THE PRESIDENT POST

BUSINESS By End of 2017, Java Trans Toll Operational Connected until Semarang Page.B2

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Jony Oktavian Haryanto Replaces Chandra Setiawan To Become Rector Of President University

Decentralizing Governance By Ermaya Suradinata

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Bonded Logistics Center at Cikarang Dry Port Keep Progressing The President Post

Jababeka plans to add 260MW Power Plant

PT Jababeka, plans to build a second stage power plant in Cikarang with a 260 megawatt capacity. The Director of Jababeka Business Development, Hyanto Wihadhi, stated that at this time, PT Bekasi Power, a subsidiary of PT Jababeka, already operates a 130 megawatt capacity power plant. “We want to add another 260 megawatts. Up until now, we have built it ourselves, but we welcome more investments if there is interest,” he explained in Jakarta, on Tuesday (9 August). Hyanto stated that the plan to build a power plant will be clearer if the company has already reached an agreement with PT Perusahaan Listrik Negara (PLN) (State Electrical Company). Previously, Jababeka emphasized an agreement with PLN, where all of the electricity production would be sold to PLN with the option that Jababeka could buy the remaining electricity that was not used. One important factor is, the cost of gas fuel become the responsibility of PLN.” That is what we are waiting for from PLN,” said Hyanto. Up until now, the revenue of Jababeka from electricity sales is the largest revenue. Based on a Jababeka financial report, as of June 2016, the income from selling electricity reached Rp 619.88 billion or a contribution of 45.54% to-wards the total revenue.(jjo)

tics Center concept is the first stepping stone towards Indonesia’s vision to not just becoming maritime hub, but logistics hub of South East Asia. “This Bonded Logistics Center concept has strategic meaning to provide certainty in raw material supply for national industry, in this case textile and textile products. It could be developed more to transform Indonesia to become the logistics hub of South East Asia. Our strategic location made it possible” said Iskandar. “Logistics improvement is desperately needed in Indonesia. Bonded Logistics Center concept is a notable breakthrough among several economic deregulation package offered by the government. In the future it could be developed for export purpose, in addition to guarantee imported raw materials supply” added Mahendra Riyanto, Deputy Head of Connectivity and Multimodal Committee of KADIN Indonesia. (abs)

Meanwhile, Iskandar Zulkarnaen, Head of Connectivity and Multimodal Committee of KADIN Indonesia, thinks Bonded Logis-

Cikarang Dry Port

To Provide Stable Electricity Supply, Jababeka Plans to Add 260MW Power Plant

2nd batch of cotton shipment from Brazil arrived at Cikarang Dry Port’s Bonded Logistics Center. At the occasion, representatives from Indonesia Textile Association and Indonesia Chamber of Commerce (Kamar Dagang dan Industri Indonesia – KADIN Indonesia) also visited Cikarang Dry Port’s Bonded Logistics Center to observe the inbound cotton shipment. Ernovian G. Ismy, Secretary General of Indonesia Textile Association (Asosiasi Pertekstilan Indonesia – API) said this Bonded Logistics Center for cotton commodity could increase the efficiency of national textile industry’s logistics cost. Raw materials would be available close to the industry at competitive price. “Bonded Logistics Center of cotton commodity in Cikarang Dry Port is beneficial for Indonesia textile industry. They do not need to buy supply far away from Malaysia or Singapore as traditional cotton supply hub of South East Asia.” said Ernovian.

Daewoo Securities Indonesia Increases IHSG Target to 5,700 Level

Jababeka Residence Launched Homestay with 12% ROI per Year

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Daewoo Securities Indonesia boosted its composite shares price index projection from 5,550 to become 5,719 at the end of 2016. Taye Shim, Head of Research for Daewoo Securities, stated that this revision refers to the price to book target (price ratio per book value or P/B) of 2.7 times as the bullish trend in the Indonesia stock market. From a sectoral perspective, said Shim, Daewoo recommends consumer, infrastructure, basic industrial, and various industrial sectors. "We are also more bullish towards Indonesian stocks. We increased the IHSG target in 2016 from 5,550 to become 5,719," he explained in an official clarification, on Thursday (11 August). His consideration, continued Shim, covers reducing the BI Rate of 100 basis point since January 2016 and the potential of further monetary relaxation and a tax amnesty program. "We are sure that a combination of cutting interest rates and liquidation injections will have a direct effect on IHSG. For the whole year, IHSG has already increased by about 18%," he stated. In his opinion, the flow of global funds is still stable. After Brexit, a number of central banks rolled out monetary relaxation policies that emphasize interest rates. "Investors actively look for high returns. We hope that foreign funds will continue to flow into Indonesia," concluded Shim. However, Daewoo mentioned three risks in the Indonesian stock market: the low participation in the amnesty tax program compared with what is predicted, unpredicted inflation spikes, as well as cash flow shifts as market anticipations toward Federal Fund Rate planned increases.(jjo) indonesia-investments.com

Daewoo Securities Indonesia Increases IHSG

Bank Jateng (Central Java)

Bank Jateng Channels KUR Rp 350 Billion

Jababeka Residence Launched Homestay

Following up the success of the New Beverly Hills homestay, which was sold at the end of last year, Jababeka Residence is marketing the Beverly Hills Platinum homestay with a starting price of Rp 1.9 billion. There are 72 units being marketed. Beverly Hills Platinum is Jababeka Residence’s newest accommodation product, which was built to accommodate housing needs for those who live in the Jababeka Cikarang region and the surrounding area. At this time, the Jababeka Cikarang region has almost 2,000 multinational companies, which come from 30 countries, so that there are more than 730,000 workers and 10,000 expatriates. In addition, the Jababeka Cikarang region has President University, which has about 7,000 students, of whom 20% are foreign students. Beverly Hills Platinum is a strategic location in the heart of the Jababeka Residence area with a culinary center, 3 national standard hospitals, a mod-

ern market, supermarkets, allpurpose buildings, a stadium, a gymnasium, a golf course, an international standard higher educational institution, as well as the Mayfair prestigious shopping center (Plaza Indonesia Jababeka). Beverly Hills Platinum consists of a 3-story homestay with a building area of 180 meters squared and a land area of 60 meters squared. Ruko D’Java is expected to be able to fulfill the needs of the middle class and upper middle class segments, which consist of executive employees and university students in the Jababeka Cikarang region. Jababeka Residence is also offering a 5-year rental guarantee for Beverly Hills Platinum buyers, as well as a 12% return on investment (ROI) per year. The added value of Beverly Hills Platinum will increase with a park facility, prayer room, study room, fitness room, 24hour security, and a single gate system. (rws)

Bank Jateng (Central Java) in an effort to alleviate poverty, channels financial capital for micro, small, and medium enterprises (UMKM). The Bank Jateng Business Director, Pujiono, explained that they provide assistance to UMKM in the form of facilitating single interest credit KUR (Citizens’ Business Credit). As reported by Radio Idola, recently, Pujiono added that the goal of this assistance is to realize the vision and mission of the provincial government in alleviating poverty through developing a capital finance scheme. Then the KUR scheme through the Bank Jateng Partner 02 and Partner 25 program facilitates UKM in Central Java to gain bank access. Providing this inexpensive interest credit is also a form of investment in terms of guidance. “If they become successful entrepreneurs, automatically, they will become Bank Jateng account holders,” concluded Pujiono. Bank Jateng, in its program, allocates KUR of Rp 350 billion in Central Java, for regency/city Rp 10 billion with individual entrepreneur targets.(ist)

| August 2016 | Vol. 5 No. 38

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STRATEGIC LOCATION Central Java, The Next Growth Centre of Indonesia Excellent Connectivity Located in the well-established manufacturing hub of Java that includes Jakarta, Surabaya and Bandung, at â&#x20AC;&#x153;second tierâ&#x20AC;? city lower operating costs 25km from Tanjung Emas Port in Semarang which is the only port serving Central Java; and the third largest deep sea port in Indonesia after Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya) 1 hr flight time from Semarang to Jakarta; 2 hr flight time from Singapore to Semarang About an hour from Kendal Industrial Park to Semarang City

Kendal Port

Semarang, the Capital of Central Java Semarang is the business centre of Central Java and the 5th largest commercial city in Indonesia The regional seat of the Central Java government with the BKPM Investment Co-ordination Board for Central Java providing efficient investment approvals

TOTAL 2200 Ha

International Airport Ahmad Yani Airport - 20km Semarang City - 21km International Seaport Tanjung Emas Port - 25km Jakarta - 470km Surabaya - 300km

Road Map Of

KENDAL INDUSTRIAL PARK

JVA Signing

- Investor to start building factories - Absarption of workforce

2020

2013 - 2014 2012

Begin Phase 2 (1910 Ha)

2014 - 2015

Land Resettlement & Infrastructure Development for Phase 1 (880 Ha)

2020 beyond

Completion of Phase 1

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August 2016 | Vol. 5 No. 38 |

PT JABABEKA Tbk Established in 1989 and is the first go public industrial estate developer in Indonesia which listed on the Jakarta and Surabaya Stock Exchange in 1994

JAKARTA

CIKARANG

KENDAL

TANJUNG LESUNG MAGELANG

MOROTAI

Using Kota Jababeka as the blueprint. The Company is developing an integrated township in Tanjung Lesung that caters to the tourism, hospitality, and leisure industries. Tanjung Lesung lies approximately 200 kilometers southwest of Jakarta. In addition, The Company was also embarked on a township development project together with Sembawang Corporation (Singapore) in Kendal Regency of Central Java, which is approximately 450 kilometers east of Jakarta Recently. The Company adds Morotai Island in the moluccas as the new industrial development project.

â&#x20AC;&#x153;Other businesses include power plant (PT. Bekasi Power) and logistics (PT. Cikarang Dry Port)

SEMBCORP URBAN

DEVELOPMENT Our Regional Presence

China Wuxi-Singapore Industrial Park 330Ha Sino-Singapore Nanjing Eco Hi-Tech Island 1500Ha Singapore-Sichuan Hi-Tech Innovation Park 1000Ha China-Singapore Suzhou Industrial Park*

Vietnam Vietnam Singapore Industrial Park (VSIP) 500Ha VSIP Binh Duong Integrated Township & Industrial Park 2045Ha VSIP Bac Ninh Integrated Township & Industrial Park 700Ha VSIP Hai Phong Integrated Township & Industrial 1600Ha VSIP Quang Ngai Integrated Township & Industrial Park 1120Ha

Indonesia

B4 | August 2016 | Vol. 5 No. 38

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Economy

By End of 2017, Java Trans Toll Operational Connected until Semarang nasional.kontan.co.id

Java Trans Toll Operational Connected until Semarang

The Ministry of Public Works and Community Housing (PUPera) targets the end of December 2016 in releasing land for Java trans toll land to be finished until Semarang. Thus, in the future, the toll road will be operational. The Head of the Ministry of PU-Pera Public Communications Bureau, Endra S. Atmawidjaja, stated that the toll road segments that are being fixed are

Section III (East Brebes – East Tegal) and IV (East Tegal – Pemalang) Pejagan-Pemalang toll road section, Pemalang-Batang, and Batang-Semarang. Endra added that the land acquisition for the 38.6 kilometer East Brebes - Pemalang toll section in September 2016 is already finished. Then the 39 km Pemalang-Batang section can be finished in October, and the 75 km Batang-Semarang section is

targeted to be finished in December 2016. “So we hope that in an aggregate manner for the remaining sections until Semarang, they will be finished by December,” said Endra, at the end of last week. By finishing the problem of releasing land, then the physical work for the toll road can also be done parallel without having to wait for everything to be released.

The Head of the Toll Road Management Body (BPJT), Herry Trisaputra Zuna, stated that the length of the toll sections that have to be finished soon start from East Brebes until Semarang, with a length of 150 km. When people return to Central Java for Lebaran next year, it is hoped that the road will already be functional. To reach the target of quickening the land acquisition process

in toll road segments, a business entity land borrowing fund scheme is used. The government will reimburse the borrowed funds through the State Asset Management Institution (LMAN), which was formed by the Ministry of Finance (Kemkeu). Previously, President Jokowi targeted the building of the Java Trans toll road to be finished in two years. In order that the project can meet his target, he in-

structed them to work hard. Related with land acquisition, he instructed them to communicate well with society.(ist)

Proven to Stimulate Economy, Central Java Government Awarding Pro-Investment Region finansial.bisnis.com

Central Java Government Awarding Pro-Investment Region

The Central Java Provincial Government will choose a regency/city to receive an award as a pro-investment region. As of now, there are six areas that have been nominated as stimulating local economic growth with pro-investment policies. Those regions include the city of Semarang, Semarang Regency, Boyolali, Wonogori, Kendal, and the city of Tegal, which are ready to compete to receive an award as a pro-investment regency and city. “Those six areas are considered as having investment attraction to invest financial capital in various business fields,” explained the Central Java Vice Governor, Heru Sudjatmoko, in an official explanation, on Friday

(12 August 2016). He revealed that the recipients of this nomination will go through a regional head presentation evaluation stage. Next, the award will be given to the winner after being conveyed to the Governor of Central Java, Ganjar Pranowo, during the Central Java Anniversary Ceremony on Monday, 15 August 2016. Heru admitted that the regions are excellent for investors, both domestic and foreign, especially the six regions that were nominated as pro-investment regencies and cities. He believes that Central Java has a lot of potential that supports investment interest. These include strategic geographical conditions, as well as supporting infrastructure, such as roads,

airports, harbors, and trains. He added that the natural potential in the agriculture sector, mining sector, and energy sector are abundant. Even the land availability is rather wide and there is an industrial region. “Central Java has a plethora of skilled workers, whether they are in polytechnic, vocational schools, or work training centers. No less important is the commitment of the regional governments to create pro-investment policy regulations,” said the Central Java Regional Secretary, Sri Puryono. An important thing related with investment building, said the Regional Secretary, is how to optimize service to investors. It is not only service quickness but also service quality that is polite and friendly. The provincial government also must continue to open investment outlets in various regions to facilitate company permits. The Central Java Province Regional Building Planning Body (Bappeda) Secretary, Rina Irawati, explained several difficult obstacles faced by Central Java, such as the increasing poverty level, the limited work fields, and the high level of unemployment. Rina mentioned that from 35 regencies and cities, 10 passed the administration and field verification selection process: the city of Semarang, Semarang Regency, Grobogan, Sukoharjo, Pekalongan Regency, Boyolali, Sukoharjo, Wonogiri, Kendal, and the city of Tegal.(ist)

fajar.co.id/

Chinese Investors Set Banten As Investment Target

Chinese Investors Set Banten As Investment Target At this time, the Banten region is a prime target for Chinese investors who want to invest in Indonesia. This is seen when the Integrated Service and Financial Investment Coordination Body (BKPMPT) of Banten Province received a visit from Chinese investors, who are part of the Indonesia China Business Council (ICBC), on Tuesday (9 August). The group was welcomed by the Head of the Banten Province BKPMPT, Babar Suharso. ICBC is an alliance of Chinese companies that invest in Indonesia. In this meeting, ICBC explained several projects that have already been done in China. These include a wind generated energy power plant, geothermal, agroindustry, and trash management. The Head of BKPMPT Bant-

en, Babar Suharso, stated that although the project and investment value has not been determined, the provincial government has already projected South Banten as an appropriate investment target, especially for the agroindustry sector. “We are directing to South Banten, especially to support building the Serang-Panimbang Toll Road, the Panimbang Airport, and KEK Tanjung Lesung,” said Babar after the meeting. Babar added that it is highly possible that ICBC will also look at the Integrated Trash Management (TPST) project, which will be built in Bojong Village, Menteng, Tunjung Teja Sub-District, Serang Regency. TPST has been appraised to have an investment value of US 90 million dollars. “It is possible if there is interest. Now they are still looking at the potential of Banten. So we cannot yet determine which

sector they will choose,” he explained. After having a meeting with BKPMPT Banten, the ICBC group held a meeting with the Governor of Banten, Rano Karno. The meeting was not open to the media. “The main point is that the Governor was very receptive to them investing in Banten,” said Babar after meeting the Governor. To attract investors, the Banten Provincial Government will facilitate investing, especially in helping with permits in the industrial region, such as the modern industry region, Wilmar industry, and Cilegon Estate Industrial Region (KIEC).(mmn)

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August 2016 | Vol. 5 No. 38 |

Economy

To Strengthen Electricity in Palu City, PLN Builds New Transmission finance.detik.com

PLN Builds New Transmission

PLN officiated the operation of a 70 kV transmission network from the Sidera (New Palu) Main Station (GI) to the Talise Main Station (GI), which was already energized in the Sidera-Talise Line (route). Previously, in April 2016, PLN had already finished building the High Voltage Airway (SUTT) transmission network with 150 kilovolts (150 kV), which connects the Sidera (New Palu) Main Station with the Silai/Tipo Main Station in the Palu electrical system, Central Sulawesi. The transmission network is operated to strengthen the power supply in the Palu system. The 70 kV Sidera-Talise Line transmission network that is energized today extends over 40 kilometers of circuits (KMS) and consists of over 64 transmission towers. Meanwhile, the 150 kV SUTT transmission network that was energized in April 2016, has a length of 57.56 KMS and consists of 89 towers. The operation of this transmission network is very meaningful, because it becomes one of the solutions in overcoming the power deficit, so that the electricity supply for Palu and the surrounding area becomes stronger after receiving this additional transmission network supply. This energy transmission also supports the economic growth and adds to the electricity supply capacity

in Central Sulawesi, which has increasing demands for a greater supply of electricity, including in the city of Palu and the surrounding area. "Besides building power plants, PLN also continues to build transmission networks and main stations as a part of its supporting infrastructure. We are grateful for the support of the Central Sulawesi society and also to the regional government, especially the Governor, for working together and providing support up until now, so that the electricity infrastructure building project done by PLN can run based on our joint expectations,” said the Director of the Sulawesi Regional and Nusa Tenggara PLN, Machnizon Masri, in a written clarification in Jakarta, on Wednesday (10 August 2016). This 70kV transmission official ceremony was attended by the PLN Commissioner, Oegroseno; the PLN General Manager, Suluttenggo Baringin Nababan; the South Sulawesi (Sulbagsel) Building Main Unit (UIP) General Manager, Idian; the North Sulawesi (Sulbagut) Building Main Unit (UIP) General Manager, Eko Priyantono; the Central Sulawesi Governor, Longki Djanggola; as well as the Central Sulawesi Vice Governor, Sudarto. "I really appreciate the work performance of PLN, which worked hard to overcome the

electrical supply deficiencies in Central Sulawesi, especially the city of Palu,” explained the Central Sulawesi Governor, Longki Djanggola. "Hopefully the hard work of PLN to make the transmission stronger will make Central Sulawesi become brighter and free from the problem of a lack of electricity supply, which sometimes has to be faced if there is a disruption in power plant supply,” added Longki. PLN will continue to monitor all the power plants to ensure that they work maximally. Besides that, PLN will continue to strengthen the electrical system of Palu to anticipate it reaching the maximum capacity that keeps increasing in line with the increasing economic growth of society. PLN will also strive to make one Sulawesi electricity interconnected system in one electricity system, like what is found in Java-Bali and Sumatera.(awp)

B6 | August 2016 | Vol. 5 No. 38

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Opinion Decentralizing Governance: The Case of Indonesia By Ermaya Suradinata

Introduction Historically, Indonesia has experienced centralized and administered by authoritarian power. Significant political and administration reform that have been going in Indonesia is just only started in 1999 after severe economic crisis in 1998 the demand of decentralization became pervasive. Decentralization policy in Indonesia is giving very wide responsibilities to sub-national authorities and left a few key policies for national: security and defence, religious, finance, foreign and justice affairs. The progressive and radically movement from high centralized to decentralize system in Indonesia more precisely called as Big Bang policy (Hofman&Kaiser, 2002) For time being, decentralization is an important feature for Indonesia. Indeed, decentralization governance is now become a big issue and have been going for many developing countries. On the other hand, political decentralization is opening channel for the people to vote their leader through direct election. Direct election for president and local government leaders –both governor and regent/city major- is one of opportunities during the implementation of political decentralization in Indonesia. Yet, president and local government leaders were appointed by local legislative members which do not always reflect public voices. Hence, decentralization on administrative and politics are intertwining policy which will reinforce one another to create strong leadership at local level. Those are strong fundamental frameworks where the power and authority to decide is not limited to electing leaders but it also covers the full shifting of decisionmaking process from central to local (Cheema and Rondinelly, 2007:78), move decision making process closer to the people (Shah and Thomson 2002:6), improve local participation, accountability and transparency, increasing competition in the delivery of services (Litvack, Ahmad and Bird 1998:8-28), it also can strengthen legitimacy and political accountability of the government (Manor, 1999:61). Promoting political and administrative decentralization in Indonesia are success to bring out a good leader which is paving good governance at local level. Those will entail putting in governance system and practices that would empower and facilitate local governments and local peoples to influence the decision making process. Both of politics and administrative decentralization are reflect the vertical and horizontal reforms which become a fundamental policy in Indonesia. This essay will argue, in spite of some problems, administrative and politics decentralization in Indonesia has given many beneficials in decentralizing governance at local level There is no single meaning and uniform standard model of governance, the terms of governance is well known in both public and private sectors. It covers at local and global arrangement, both formal and informal norms and understanding. Governance mechanism can be referred to formal and informal ways. There are formal (laws, procedures), but also informal structures and rules (caste/ tribal organizations, endogenous customs, patronage relations). Governance is not only talking about efficiency which are inputs, outcomes and impacts, but it is consist important values such as trans-

parency, integrity, honesty are important in themselves. The governance term has strong intuitive approach, hence the precise definition usually based on the user perspective. There are several explanations on it definition; based on dictionary understandings, governance is ‘the act or process of governing, specifically authoritative direction and control’ (Webster). Governance is not synonymous with government, however it is because of the similarity root of word of ‘govern’, in some extent the government and governance terms are interchangeably when it comes to understand as ‘exercise of authority in an organization (whether in private or public). For example, Collin gives understanding of governance as ‘government, control, or authority; and. ‘the action, manner, or system of governing’. In this sense, those are have been used to describe as decision process in organization. Despite ambiguity of definition, governance generally refers to the means for achieving directions, control, and coordination of wholly or partially autonomous individuals or organizations on behalf of interest to which they jointly contribute (Heinrich and Lynn, 2000:2). Governance entered into development discourse in 1990s. How is the government shifting into governance context? In the last fifteen years, the term of government and governance has been clearer with several distinctions. Recently, the Government alone which ‘governs’ – or is seen to govern alone (as for example in the time of newly independent colonies which started from centralized, government driven development). Indeed, the government is sometimes seen as a big problem. Governance refers to the formation and stewardship of the formal and informal rules that regulate the public realm, the arena in which state as well as economic and societal actors interact to make decisions (Court & Hyden, 2004). Hence, governance concept applied at government affairs through public service approach. Public sector governance can be understood as the way the state acquires and exercises its authority to provide and manage public goods and services, including regulatory services. The elements of governance (government, private sector and civil society) should have balance contribution to create harmonious relationship in the government process, as Kimura (2001;p.62) statement ‘the ideal model’ of governance. Further, Kimura alert that without political will to enhance balance participation of the stakeholders, the citizens and public sector are vulnerable to be interfered by the government or even political elites, as shown in the figure bellow. Governance result is similarly like government, it can be good or bad. Governance context is involving multi-stakeholder process with weaker and stronger actors who need to cooperate to solve collective problems. Each party will negotiate using their (divergent) basis of power: so it becomes political. Good governance understands that the govern process is not merely lay on one actor alone. Good governance can be achieved if there are collaborative actions among different actors directed by common goals. The function of leadership toward governance is how individual or organization is able to lead or guide individual or entire organization to achieve common

goal. Here I will focus on how it can facilitate or provide conducive environmental for good governance. This paper provides a linkage of leadership and governance from the Indonesian perspective and will focus on the individual/leader role to facilitate the governance. The first section will argue, in spite of some problems, a good leadership/a good leader will give many beneficial in enhancing public accountability, transparency, enlarging citizen participation both in local and national level. The second describes the progress made by those leaders in recent years and its impact. The conclusion is that fostering democratization will create a good leader which is facilitating a wide space for many actors to come and join in governmental process. Decentralization emerging good leadership in Indonesia The severe long path democratization process which was started in 2000, now has been fruitful. The victory of Jokowi, ex-governor of Jakarta metropolitanex mayor of small city in center Java Province-Solo as a President showing democracy in Indonesia is on the track. His victory putting democracy in Indonesia on a much stronger footing has highlighted the changing characteristics of democracy in Indonesia. It can be viewed as a new chapter of Indonesia’s democratic process. It shows how civil society seizes the political process from the hands of political elite. It can be seen also that Indonesian majority is getting smarter to determine who should be chosen for their leader, free from the political elite intervention (read: intimidation). The battle head to head, Jokowi- a modest family background versus Prabowo Subiyanto, military general and ex-son in law former Indonesian President, it is look like as David vs Goliath. The most dramatic and emotional political battle was finally won by a village boy and a commoner with no political legacy in his blood. Within almost fifteen years a new political voting class (middle class?) in Indonesia is now beginning to come up and keen to play as a dark horse in the Indonesia’s political map. This class was broke the domination political elite and overturns the myth of Indonesian leader which is should be shinning; popular, has strong linkage with military forces, come from wealth-business elite or has inherit the political genes. The victory of Jokowi on 2014 President election is a triumph new politics over the strong military linkage. The result of Indonesia president election in 2014 at least is show four implicit directions: the people were tired on power abused by elites, the people have expectation that government should accountable directly to the people (not to the political elites), the people need a-fresh leader which has no relation with elites, and implicitly, Indonesian majority pushing forward an agenda of good governance. The linkage of leadership and governance covers clear strategic direction, straight plans and bottom-up policies, effective monitoring, friendly regulation, increasing motivation and partnerships that integrate all governance aspects to achieve results. The linkage of leadership and good governance is a dynamic process involving many steps and elements, and each party’s role in the process will decide the extent of good governance practices in each location. Based on UNDP, it emphasize that governance covers eight dimensions: consensus oriented, participatory, rule of law, efficient and effectiveness, equitable and inclusive, responsive, transparent and accountable. On the other side, the good governance practices in Indonesia give different features from international perspective. Drawing upon those, this paper will generalize the scope of good governance based on our experiences as follows: 1. Good Leadership- enhancing Public Accountability Though there is neither general consensus nor single definition for accountability, however Asian Development Bank emphasize it as the most valuable dimensions among three other pillars of good governance; transparency, predictability and participation. Accountability is defined as the ability of public organization or officials to ex-

plain how they use their authority, where the resources go and how the target achieved (ADB, 2001) . In general, accountability involves giving accounts for actions taken and being held accountable for those actions. Accountability can be defined as a social relationship in which an actor feels an obligation to explain and to justify his or her conduct to some significant other (Bovens, 2005). Accountability in some extent referred to the answerability for one’s action or behavior. Despite the academic and ‘western’ perspective on leadership-governance, I would like to give simple best practices on those. Leadership accountability is viewed simply by us to look at the leader behaviors, how the leaders use their power. Those below examples are based common people’s perspective. First, mostly our people can say whether their leader is accountable or not is depend on their responsibility and their seriousness toward their works. Ahok/Basuki Tjahaya Purnama,ex-Mayor East Belitung-Governor of Jakarta Metropolitan. His maneuver and controversial policies more visible when he is become as a Governor of Jakarta, replace the Jokowi position which is elected as a President. He is Chinese and Christian-a double minority for Indonesian. He is outspoken and surround by enemies but he is stand up to anyone who disturb his way. He was fight publicly with local assembly members when He found a budget planning misuse. He is the new phenomenon on Indonesia politics constellation. Abdullah Azwar Anas- Regent Banyuwangi is a local leader who is success to transform the Banyuwangi images. Within 3 years of his tenure, the revenue for the Sector of Trade, Hotel and Restaurant had gone up by some 34.5%, while the Manufacturing Sector had also gone up by 18.4%, and the whole Tourism Industry had increased by 31.3%. In the eastern part of Indonesia, Rcently, Banyuwangi is popular destination for domestic tourist. Second; accountability is viewed as leader’s honesty. The indicators of honesty can be seen by their lifestyle, the way they are use official facilities. People love a modest leader, the leader should be seen as a people’s representative. Otherwise, He/ She has an empathy on people’s feel. Risma-Mayor of Surabaya is very popular among Surabaya’s voters by her direct actions when she finds mistaken. She is not hesitate manage traffic when she trapped on it. She is also not hesitating dredging mud or cleaning street-drainage if she found it was clogged. She is successful to change Surabaya’s face which is become greener with lovely parks. She always put her private utilities such as pink boots, shovel and gloves in his official car which is to be used by her own hand whenever it needed. Risma is also well known as a Mayor who is brave to shut down the red light district in Surabaya. Nurdin Abdullah, Mayor Bantaeng is the first academician professor who is becomes a Regent in Bantaeng-small city in South Sulawesi. He is elected twice to gain 10 years tenure. Ridwan Kamil- young succesfull architect becomes a Mayor in Bandung city in 2013. He is biking to the office (it is rare for high official in Indonesia) and he is smart to utilize CSR’s budget for building public facilities. Third, accountability can be understood as the closeness of the leader and their people. The more leader doing ‘blusukan’ (impromptu visit) as popularized by President Jokowi, the more people feel close with their leader. Through this mechanism, people can talk-ask-request their need directly to the leader. In this case, leadership means creating an access for grass root to the power. All the leaders I mention above are doing ‘blusukan’. 2. Good Leadership-fostering Transparency Transparency is a fundamental indicator of governance. Transparency is where the people can observe the working of their leaders. Transparency can attract people to express, evaluate, comment on leader’s policies which can affect people’s life. Transparency means the people can monitor the government’s performance. Transparency will makes the media and watchdog groups to expose easier, and therefore deter, improper or otherwise undesirable influences on policymakers. Transparency will empower citizens to have greater voice in what government does and promoting government ac-

tion that advances the people’s need, not just a privileged few. Hence, transparency promotes a more efficient and effective government. For Indonesia cases, transparency is shown by the rapid implementation on electronic government both local and national level. These technologies should create more transparent governments and administrations. Many local governments are using e-procurement to avoid corruption-collusion-nepotism practices. The e-procurement model of Bandung city is monitoring by World Bank and it will be use a standard model for all local authorities in Indonesia. Many local authorities is implementing transparency mechanism for investment process. They cut the red tape process through electronic permit application mechanism. Good leader which come up from direct election can strengthen legitimacy and political accountability of the government and will be able to prevent abuse of power such as corruption, collusion and nepotism. Another significant alteration is the mechanism of development planning. During authoritarian era, development planning was created by central government regardless transparency and local government aspiration. In some cases, government policies do not reflect public need and only beneficial for elites. However, since leader is elected directly by people, transparency becomes most important aspect in development planning process. The planning process was conducted openly to the public, from village level until national level (bottom up planning). So, the citizen can control whether development planning suitable to the public needs or not. For example, Regent of Batang conducting ‘budget festival’ for public. In that occasion, annual public budget expose publicly. The Batang community will find out easily how much and where the budgets are used. Ahok-Governor of Jakarta is hardly struggle to create a transparent financial planning through e-budgeting program which is succeeding eliminate ‘a 12 trillion rupiahs ghost allocation’. Ridwan KamilBandung Mayor is creating online performance measurement model for public organization which provide daily public services. Bandung inhabitants can give direct evaluation through the system. In this case, good leadership means giving open access for public to get information. 3. Good Leadership- enlarging Citizen Participation During Soeharto administration, citizen participation almost never existed. The strength of the central government role does not give opportunity to the people to deliver their aspirations. Moreover, the arrangements of development programs were always executed by top-down approach, while ideally, citizen voices was the most important aspect in democratic country. The citizen must be given greater opportunities to involve in the government process such as elect the local leader, arrange local planning, manage local budget and promote local development. In the other word, citizen participation is the core value of governance. Citizen is as an ‘important element of governance in which people can voice their preferences and control the government work. Hence, the citizens have bigger senses of belongings and responsibility to support the government policy. Recently, under the good leadership policy, the citizens play an important role in order to achieve good governance. The good example comes from local people play role on governance context, how youth promotes the blue fire phenomenon as one of important tourism object. It locates in mountaincrater Ijen in Banyuwangi. It was only attract small domestic/international group tourists which have specific interest. But after it is blow up on media social by local youth, the blue fire becomes a monumental tourism object. It becomes a magnet for domestic tourist and it also success boosting Banyuwangi revenue significantly. 4. Good Leadership- increasing efficient and effectiveness public service. Good leadership can be seen by increasing quality of public services, and it is only resulted by a good leadership which gives efficient and effective public services suitable by people need. At least there are two reasons why a good leadership can create beneficiary in providing public service, firstly because only good

leadership who has more awareness on public needs and problems, and secondly because a good leadership have enough capacity to manage all business that are very complex and complicated through different mechanism and involving different actors. Many local authorities have conducted Minimum Service Standard (MSS) as a guarantee that public service have been provided equally without any discrimination among ethnic, race, religion and region as well. The mechanism of public service has also being reformed by introducing one stop service policy and Information and technology (IT-based) in order to provide service cheaper, faster and transparent. In the case of government failure in providing public service, some local governments have tried to established onbudsman commitee in order to bridge dispute between citizen and the government. 5. Conclusion There many perspectives to measure the linkage of leadership and governance in Indonesia such as from political and economic point of view. From our observation, since year 2000 our country has been learning how to reform our bureaucracy through governance approach. Leadership is a critical component of good governance for Indonesia. When we say on leadership, what we are thinking is a person who will reform institution concerning public interest. The leadership in this context is playing role on how it create a bridge and to eliminate a gap between administration process and the public interest. Leadership in our context is similar with a dedication leader who facilitates a good collaborative among stakeholders. After now, from the aspects of public accountability and transparency, there is significant changing on how the leadership is more responsible and transparent to run the government. The involvement of citizen to contribute in the government also increases. A good leadership has also affected to the providing of public service, such education, health, public works and clean water which is faster, cheaper and no discrimination. Even though a holistic study still needed to measure leadership and governance, however we can say that is a good leader will create a good leadership, and good leadership will pave a good governance. References 1. Bardhan P and Mookherje, D, 2006; Decentralization and Local Governance in Developing countries, A comparative Perspective, The MIT Press, Massachusetts. 2. Bovens, M, 2005, Public Accountability in Ferlie, Ewan. Laurence Lynn& Pollit (eds) The Oxford Handbook of Public Management, Oxford University Press 3. Cheema, G S and Rondinelli, D A, 1983, Decentralization and development, Policy Implementation in Developing Countries, California Sage Publication, Inc. Beverly Hills. 4. _______________________, 2007, Decentralizing Governance, Emerging Concepts and Practices, Booking Institution Press, Washington DC 5. Heinrich Carollyn, Lynn Laurence, 2000, Governance and Performance, George University Press, Washington DC 6. Hofman Ben, Kaiser Kai, 2002, The Making of the Big Bang and its Aftermath, A political and Economy Perspective, World Bank 7. Hyden Goran, Julius Court and Kenneth Mease, 2004, Making sense of Governance, empirical evidence from 16 developing countries 8. Kimura, H, 2001, “The Capacity Building for Democratic Developmental Local Governance”, in Kimura Hirotsune, Local Government Capacity Building and Poverty Alleviation: Policies Within the Framework of Decentralization, Cases of The Philippines and Indonesia, Research Report, GSID Nagoya University. 9. Litvack, J; Ahmad, J; Bird R; 1998, Rethinking Decentralization in Developing Countries, Prem Network, USA. 10. Manor, J, 1999, The Political Economy of Democratic Decentralization, The WB, USA. 11. Shah, Anwar and Thompson Theresa, 2002, Implementing Decentralizes Local Governance: a treacherous Road with Potholes, Detours and Road Closures, Georgia State University, Atlanta.

www.thepresidentpost.com

August 2016 | Vol. 5 No. 38 |

Opinion

Tax Haven Helps In Development Of Disadvantaged Regions Dr. Josep Ginting Economist - President University A substantial fund in Indonesia is needed. There are many areas in Indonesia that potentially increase the national revenue, there are many regions in Indonesia that can be developed into such other major cities in the world. All this requires a substantial fund, while of course state/local budget (APBN/APBD) is not enough to realize it all. If the underdeveloped regions are well managed, it will contribute very significantly in order to strengthen the Indonesian economy in the future. The role of the development of underprivileged regions for a country has been proven in the bamboo curtain country, China. Many major cities in the barren plain or even inland away from the center of politics and trades, like Guiyang City which in the past was underdeveloped and even became a burden to the Chinese government, now with the help of investors it’s been developed by forming the New City Guizhu as the development of Guiyang City. India is also in the same condition, in which to build the country, the government thinks that developing new cities are needed with the aim of stimulating the economy, as evidenced by the construction of "silicon valley" in India, the Indian economy soared. The construction funds in India came from the big famous investor country of Mauritius. Currently there are several new cities in Indonesia which is expected to be a source of revenue for Indonesia in the long term whether in the tourism as well as in the industrial sector. Take Tanjung Lesung as an example which today has become a Special Economic Zone (SEZ) which is managed by PT. Kawasan Industri Jababeka. Morotai is the other Special Economic Zone in the eastern part of Indonesia that is being pursued to be developed soon and consequently will contribute revenue for the region and the country of Indonesia. Likewise, the Special Economic Zone in Kendal is expected to be developed to push the economy in the region and Indonesia as a whole. However learning from the experience, Tanjung Lesung when first developed by PT. Kawasan Industri Jababeka Tbk, it was an area far from the touch of investors. No investor would come to Tanjung Lesung considering the infrastructure was inadequate,

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Tax Haven

investors feared to suffer losses since the loss suffering would not only be for 5 (five) or 10 (ten) years but can reach 25-30 years. But after Tanjung Lesung designed into a Special Economic Zone and managed professionally, it is now in the era of 2016, other investors will begin to eye to come and build a property, considering the tourism industry infrastructure had been provided. The electricity supply has increased, the means of transport has been growing, and drinking water facilities have been there. The atmosphere of western coast of Java island is now alive, and people forget that the investors who build the region have been daring to take the risk in the long-term investment for the sake of rapid and sustainable development. There are still many more areas to develop, just mention one of them, Morotai. One region that is very beautiful and potential for tourism, while considering the position of the region in the north eastern Indonesia, the area has the potential to be developed into the city for trade traffics inter-continents, Australia, America and Asia. The question then is: "is there any investor to come there?" And if no, "why is it too hard to lure investors to come to Morotai?" The case like Morotai is not the only one. There are still many other regions that need investor touches. Economists and technocrats in Pres-

ident University came up with several thoughts such as 1. How to attract big investors to these areas? 2. How to do "explosions of economy” to positively develop Indonesia as a whole? One approach appeared is TAX HAVEN which may be one solution. What and How is Tax Haven? Tax Haven is another word for Tax Heaven, or in Indonesian called ‘surga pajak’. This term has evolved between the late 18th and 19th in Europe, where after almost 100 years of the industrial revolution going, a lot of rich people who had incredibly large treasures transferred their funds out of UK, France and Germany to other countries, including the United States, because of the taxes in their countries were very high at the time. As a result, the heart of the European economy was in shortage of investment funds. It is called "tax avoidance". On the contrary, the regions receiving the funds turned into big industrial zones, like America and some countries in Asia. Tax Haven has evolved. Indeed Tax Haven is also often seen from the negative perspective of "the opportunities for tax avoidance" as does occur in the United States, the owner transfer their funds to the coastal area of Bermuda in America, by opening offshore bank accounts there. So the question is: "Is Tax Haven a negative tax approach?" It cer-

tainly cannot be seen partially from the negative side only. Indonesia needs a new policy in the field of taxation called Tax Haven. It is seen from the eyes of economists as being healthier and wiser than the Tax Amnesty. Tax Amnesty in Indonesia is very good for attracting funds of around Rp 4,000 trillion, which is owned by Indonesian people, and spread in large cities in other countries outside Indonesia, such as Singapore, Hong Kong, Australia and some countries in Europe. Most of these countries allegedly impose Tax Haven. Based on research and ideas in President University, Tax Haven should be considered to be applied by first being legislated, made a good regulation, so as Tax Haven will be seen from the positive perspective. What is the role of Tax Havens in the development of disadvantaged regions? Indonesia has many regions which are economically left behind. These regions are underdeveloped not because having not enough potential (not having interesting resources) to be developed, but they on the contrary have a very valuable assets and good for supporting economic development of Indonesia as a whole. Take the region of Morotai, located in Ternate, Maluku, East Indonesia. What is the condition of this area and is there

any investor coming to this region? The answer is Morotai is very beautiful and strategically located which may become a backbone of Indonesian economy in general and the eastern part of the Indonesia in particular, but there is no investor coming. Investing to develop Morotai region, based on the research in the side of the macroeconomic and corporate finance will surprise and slow down even discourage investors from coming to the region if we use the taxation system that exists today in Indonesia. It is clear from the standpoint of finance and economic science, President University believes the investment in the Morotai region will result in 3 (three) major things to the investor companies or developers, namely: 1. The value of investment is enormous, given the absence of adequate means of development, so developers must be willing to develop from scratch. 2. Economic development in Morotai definitely will make financial reports of the investors to be "red" in the period of more than 25-30 years, equal to one generation of investors. 3. The calculation of the investment will show the Net Present Value (NPV) to be negative, not to mention about IRR (Internal Rate of Return). Both of these approaches will definitely discourage investors from coming.

A. If Tax Haven is Applied

Tax Haven will play full roles in promoting Morotai and other areas at a time when the government has limited funds to develop it. There are several items that benefit from Tax Haven when applied in Indonesia, such as: 1. To provide a big opportunity for diversification of investments. Investors are given the opportunity to choose the type of direct investment they will do, since there will be various types of investors will come. 2. Tax deferral is under consideration, so that at a time when the developer company suffered a loss it will be helped by tax compensation. 3. Able to do protection of assets belonging to investors in the investment process. 4. Reduce tax burden for companies who invest in there, it can even consider reducing the tax burden for the parent company to be more enthusiastic in disbursed funds to invest in the investment projects through subsidiaries. 5. Tax Haven can also reduce the risk of exchange rate fluctuation, since the investment fund is derived from the production of domestic economic activities in both financial and non-financial industries. 6. Tax Haven is modified and designed to support business development opportunities in various sectors, as in Morotai for example, if tourism facilities are developed, it will have a positive impact to the other industries. The calculation of the costs and benefits to apply Tax Haven in Indonesia Basically in the realization of the rules and regulations of Tax Haven in Indonesia will experience many obstacles and criticism to come from politicians and will invite pros and cons. One of the questions that must be answered is: "If the Tax Haven implemented then the revenue from taxes from taxpayers will go down, so why Tax Haven should be applied?" Such a question is common to ask. But the costs and benefits in applying Tax Haven can be calculated, as being shown in the table below:

B. If Tax Haven not Applied

Investors

Government Will lose tax revenue from companies operating in the regions of development as well as tax loss from the resources managed in the areas.

Taxes

Investors will be helped out in the development of disadvantage regions for the period of 25-30 years.

Development Funds

The number of investors will grow along with the value of investments brought to develop the unprivileged areas.

Profits and Revenues

Investors will not experience big losses due to help of tax deferral.

Will receive huge funds from investors while improve the quality of life of the people in the areas such as increasing revenue and better infrastructure.

Investors have to provide substantial funds and if not properly managed, they will lose their investment.

There will be cultural and economic changes in the related regions. Better economic changes will be beneficial, but if unable to manage the changes caused by the development, should prepare to face the changes of ways of life of the local people.

Risks

If so is there no other way, to make investors come to invest to overcome all three points listed above? There is. One of the wisest policies today is Tax Haven.

Not stress out from seeking development funds for disadvantaged regions.

Obviously if Tax Haven is not applied, the central or regional government will have to face difficulties in the long term: 1. The underdeveloped regions will never be taken care of if the government has only allocated Rp 1,700 trillion from the state budget, given the cost of routine expenditures only (Draft Budget 2015) reach Rp 2,000 trillion today. 2. The funds from the Tax Amnesty program also cannot be amounting to Rp 4.000 trillion at once, while if the proceeds received in the period of the production time are not bound by an interesting policy, it would be transferred abroad again so that in the long run it will create a problem to again looking for a new policy in order to attract these funds. From the considerations and ideas mentioned above, the regulations and policies on Tax Haven must follow the legislation of Tax Amnesty. In this case once again the government and all parties are expected to be wise and alert to the opportunities to apply the Tax Haven.

www.thepresidentpost.com

| August 2016 | Vol. 5 No. 38

Education

Jony Oktavian Haryanto Replaces Chandra Setiawan to Become Rector of President University president.ac.id

Jony Oktavian Haryanto Replaces Chandra Setiawan to Become Rector of President University

President University officially appointed a new Rector, on Monday (1 July), in the Himawan Auditorium, President University, Jababeka Cikarang. Dr. Jony Oktavian Haryanto, SE, MM, MA was chosen to replace Dr. Drs. Chandra Setiawan, MM, Ph.D for the 2016-2020 period. Previously, Jony has taught at several universities, such as Podomoro University, Satya Wacana Christian University, Indonesia Tourism Economics College, the University of Indonesia, and Pelita Harapan University, since 2002 in order. In a speech by the former Rector, Chandra, he stated, “I consider Jony as my little brother.

I along with Mr. S.D. Darmono have tried to find my replacement since last year. Mr. Darmono and I will continue to support Jony from behind the scenes for the betterment of President University.” As for the achievements during his period as Rector, Chandra revealed that one of them was the institution accreditation. At this time, President University has a ‘B’ accreditation with a 334 score. For the study programs, there are improvements, such as IT has an ‘A’ accreditation, Management has a ‘B’ accreditation, and Accounting has a ‘B’ plus accreditation. “In the future, we hope to get an ‘A’ for Internation-

al Relations, Business Administration, and Electrical Engineering study programs,” added Chandra. “During 4 years, there are about 2,700 alumni, and all of them are employed, because the waiting period at President University is only 3 months. They have to do apprenticeships, and many of them are already hired for jobs before they graduate,” he said. Outside of his position as Rector, Chandra continues his service as the KPPU Commissioner. Chandra explained in the inauguration room that some individuals have the title of Rector at two different higher educational

institutions, such as Djoko Santoso (Rector of UI and ITB), Ermaya Suradinata (Rector of President University and IPDN), and himself. Meanwhile, in his speech, Jony stated, “Oxford needed 920 years to make it to the top 10 universities in the world, Harvard took 380 years, MIT was 155 years, but NTU only needed 25 years to be ranked 13th. This means that President University, which is still 14 years old, still needs 11 years to become a top global university.” “President University will be directed to become an Applied Research University; it will produce research that has results

Bappenas Education and Training City Planning with President University president.ac.id

which can be used directly by the surrounding society. One of the superiorities of President University is that it is surrounded by more than 2,000 companies that are in the Jababeka industrial region. This means that we have an organic lab. What about Electrical Engineering students who want to study about strong currents? We have the Bekasi Power Plant here. For Business students who want to study about consumer goods, we have Unilever, Mattel, and many others.” Jony added that the meaning of a World Class University is not just because the campus uses English language as its medium, but also because there are many

students from China, Taiwan, Vietnam, Afghanistan, Mongolia, and others. It is also because President University plans to publish world-class research. “We will have international accreditation, so that we are recognized. The waiting time to receive jobs can be shortened to become 2 months or even 1 month. From out statistics, 93% of our graduates already have jobs before graduation. Well, that figure can also be improved to 97% or even 100%. At this time, we have 20 Doctorate Degree holders, and 17 more who are working on their Ph.Ds. That will come to about 50 people, if they all finish their degrees, which will strengthen President University,” said Jony. At the end of his speech, Jony stated, “It is time to work, work, work. I do not want to become ‘Superman’, because then I would have to have a six-pack, moreover if I had to wear underwear on the outside. There is no ‘Superman’ at President University. There is just a ‘Super Team’. We are all together, we hold hands, we build. Let President University Be Glorious Forever!” The handing over of the position event was attended by several officials: the Head of the Central APTISI Steering Council, Prof. Dr. Ir. Djoko Santoso, M.Sc.; the General Director of Higher Education Technology Resources, Prof. dr. Ali Ghufron Mukti, M.Sc., Ph.D.; the General Director of Higher Education Technology Organization, Dr. Ir. Patdono Suwignjo, M.Eng.Sc.; the Founder of President University, S.D. Darmono; the Head of the President University Education Foundation, George Hadi Santoso; the former Minister of Research and Technology, A.S. Hikam; the President Director of Jababeka, Tedjo Budianto Liman; the Director of Jababeka, Hyanto Wihadhi; as well as several entrepreneurs and academicians(rws)

Champions of Gothia Cup U-15 Receive Scholarships from President University The champions of the Gothia Cup U-15, ASIOP Apacinti Soccer Ball School, received awards in the form of educational scholarship assistance. The seventeen players who proudly represented Indonesia will receive financial tuition assistance until they graduate. The awards were given directly by the Rector of President University, Jony Haryanto, in the President Lounge, Bativia Tower, Jakarta, on Tuesday (16 August). The scholarships are expected to be life and competency guarantees in the future. "President University will cover their educational costs. We consider education for athletes to be very important to equip them with knowledge in the future,” stated Jony. Jony added that the scholar-

ships are related to cases of athletes who have difficult lives after they retire. “I am certain that these cases will not occur if the athletes are equipped with enough scholarly knowledge,” he said. Meanwhile, the Director of ASIOP Apacinti, Ade Prima Syarief, confirmed that the number of scholarships given to the players can value hundreds of thousands. That number is rather large because the scholarships given total almost Rp 8 billion. However, Ade hopes that the scholarships can be utilized as optimally as possible by the players. "For us, it is not about the amount, but the education guarantee security for our players,” he concluded.(ist)

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Bappenas Education and Training City Planning with President University

Actualizing good governance of a city in Indonesia needs attention from all parties. PT Jababeka Tbk. in its vision to develop 100 cities that are mediated by President University along with the National Building Planning Body (Bappenas), held a signing of a memorandum of understanding for education and training about city planning. President University is the only private tertiary education institution that is entrusted to conduct education and training, because of the experience of Jababeka Group, which has suc-

ceeded in city development and management. Bappenas through the Planned Training, Education, and Guidance Center (Pusbindiklatren) and President University is holding two activities, which are “Training of Trainers”, which will be held on 16 August 2016; and “Diklat City Planning” Batch 1, which will be held on 29 August – 9 September 2016, located at the President University campus. As the host, President University and Jababeka Group have prepared all the facilities needed in conducting this

activity. This activity is a Non-Degree Education and Training Program to improve the capacity of civil apparatus human resources in planning, whether in central or regional locations. “Training of Trainers” prepares presenters who will become trainers in the “Diklat City Planning”. There are about 25 individuals, from representatives of various institutions in Indonesia who will attend the “Diklat City Planning” activity. This Diklat Program will be held for several batches,

so that it provides wide opportunities to improve the quality of human resources, especially the state civil apparatus in city planning. This activity was attended by the Founder of President University, Setyono Djuandi Darmono; the Rector of President University, Dr. Jony Oktavian Haryanto, SE, MM, MA,; the Head of Pusbindiklatren Bappenas, Ir. Yahya Rachmana Hidayat, M.Sc, Ph.D,; as well as invited guests.(ist)

Bappenas Education and Training City Planning with President University