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November 2016 | Vol. 5 No. 44



Priok Power Plant Project Gets USD310 Million Fund from Japan

Property Outlook in Q4 2016: Tax Amnesty Expected to Elevate Demand

140 Golfers Take Part in Akmil Open Golf Tournament

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Investment is one of the indicators of economic growth amid the fierce global economic competition. Therefore the countries in the world race to offer their distinctive competitiveness to invite more investors. Meanwhile investors need security which plays an important role in creating political stability and economic growth. The government has targeted economic growth to grow from 5.1% to 5.4% in 2017 amid the current slowing down global economic situation. Regarding the issue, the challenge now is how to create a conducive business climate to make investors comfortable investing in Indonesia. In an event attended by Governor of Central Java Ganjar Pranowo, organized by the Business Forum of Central Java (FBJT), Central Java Provincial Government, Investment Coordinating Board (BKPM) and the Indonesian National Police with the theme "In Order to Socialize BKPM-Police Working Guidelines on Investment Security Assurance in Indonesia ", at Wisma Perdamaian, Semarang, Central Java, on Tuesday (1/11), Ganjar said, "Right now the economy is not slowing down, national economic growth only reached 5.1 percent. However in Central Java, the growth is little bit better at 5.75 percent. It shows Central Java is still attractive as this province is okay and conducive." Furthermore Ganjar Pranowo empha-


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Police, BKPM Guarantee Investment in Kendal Industrial Park, Central Java, Secured

sized the importance of security to carry out any program set up by the president. The good and primed public services, according to him, are provided by working together with the police as well as the Ombudsman in a bid to make the supervision works carried out by the security officers easier. The Police, Central Java BKPM and the provincial government have agreed to maintain the security of investments in Central Java, especially in the industrial zone of Kendal Industrial Park that will be inaugurated by President Jokowi and the Prime Minister of Singa-

pore. Some speakers, namely Deputy Control and Implementation of Investment BKPM RI MM Azhar Lubis, Wakabaharkam of National Police Inspector General Eko Hadi Sutedjo, Kasubdit I Dit Economic Baintelkam Police Commissioner Dally Achmad Mutiara, Vice Director of Tipidiksus Criminal Investigation Police Commissioner Mujiyono, Java Central Police Chief Inspector General Condrokirono, Director of Kendal Industrial Park Hyanto Wihadhi and Chairman of the Central Java Chambers of Commerce and Industry Kukrit Suryo

Wicaksono, were presented at the forum. The Central Java Business Forum was also attended by all the Chiefs of Police/Kapolatabes, the Regents and Mayors, and business people in Central Java. Sources said that the industrial estate is a strategic asset of the national economy, as a means of regional development and a center of globally competitive investments as well as to create jobs. Gen. Pol Eko Hadi Sutedjo, National Police Wakabaharkam, said, "In our legislation both Law No. 3 of 2014 and PP No

142 of 2015, it is obvious that the existence of an industrial estate is to increase the competitiveness of our national economy. It has a strategic function, so for a specific industrial park that meets the requirements it can be designated as the National Vital Objects (Obvit) like the one of Jababeka Industrial Estate in Cikarang, Bekasi ". Furthermore Azhar Lubis, Deputy of BKPM, and Central Java Police Chief Inspector General Condro Kirono stated the investors investing in the industrial estate of Central Java are guaranteed in term of security and ease of

doing business. The guarantee is stipulated in the MoU signed by the head of BKPM, Chief of National Police, Chief of the Attorney General, governors, regents and mayors. This includes the Central Java Province and Kendal District where the Kendal Industrial Park is located. The Kendal Industrial Park in Central Java has been designated as a national strategic project according regulation No. 3 in 2016 to spur national economic growth and the development in the area. The business people and local government officials attending the business forum expressed their appreciation of the business forum event in Central Java. Director of Kendal Industrial Park, Hyanto Wihadhi said that every 1,000 ha of the industrial zone will provide jobs for 500 thousand workers directly or indirectly in the industrial sector and will create a multiplier effect for the economy. Hyanto added that as an industrial estate manager and industry player, he said he appreciated the measures and efforts taken by the government in providing eases in investment licensing; such as taking care investment permit now only needs 3 hours, the provision of permit to construct directly and the integrated one stop services (PTSP). "The ease of investment has a real impact on the Indonesia rating upgrade from 120 in 2014 to 109 in 2015, and is (continue to p2)

Quote Of

The Month

“Any size of corruption, i will handle it!� President Joko Widodo

Licensing for Building Plant Outside Industrial Zone Still Difficult The Investment Coordinating Board (BKPM) keeps pursuing their goal to attract more foreign investors into Indonesia to build the manufacturing plants. However BKPM still received many complaints from investors who want to invest in Indonesia, especially

related to the availability of land outside the industrial estates. Deputy for Investment Implementation Control of BKPM, Azhar Lubis, said the board has also recorded some problems associated to business licensing. A total of 92 issues have been under reviewed by

BKPM. "We are always ready to accommodate and solve any problem; there are 92 problems we handling right now, incidentally nobody reports a problem in the pharmacy sector. It means the pharmacy industry is running well or maybe there is a prob-

lem but not reporter," said Azhar Lubis, in his office, South Jakarta, on Thursday (3/11). Out of the 92 problems, 19 are related with the projects of public private partnership. There are 76 non-PPP projects with problems of which 43 have been completed and

33 others are still in progress. Most of the problems are associated with the shareholders, the commitments of regional authority in some regions, and including the land clearance. From the 33 projects, 20 projects out of them have been given the principle (continue to p2)


November 2016 | Vol. 5 No. 44



President: Private Sector May Finance National Development President Joko Widodo has stated that national development priority programs did not have to always rely on the national (APBN) and regional State Budget (APBD). “We have to open up as many opportunities as we can to the private sector.” At a meeting discussing Investment Financing of Non-state Budget at the presidential office in Jakarta, President Joko Widodo said, "We have to open widely for financing of non-state budget, either from purely private sector, State Owned Enterprises (SOEs), or PPP (Public Private Partnership) with non-state budget guarantee as well." The president said that we need the private sector to participate in moving the economy since whatever additional budget in APBN, occurred in last two years, is unlikely able to cover infrastructure projects worth approximately at Rp 4.900 trillion. Meanwhile, the president added, in five years the budget estimation would be only Rp1.500

trillion. "So the shortcomings must be covered by the private sector, SOEs, and PPP." The president reminded repeatedly that a priority project should be offered to the private sector first, if the private sector did not want it then be offered to state owned enterprises either local or national. "And if the SOEs do not want it because it’s not economical-

ly feasible, then we use the state budget as the last resource," President Jokowi said. He also warned that non-government investment, especially in the infrastructure sector, would not appear out of nowhere. It should be encouraged, facilitated, and given special efforts. “The government shall make breakthroughs fast. Do not get stuck in a routine, do not

just work as usual, and the coordination as well as consolidation among ministries and institutions is a key factor.” According to the President, the private sector needs an overview of an investment project, what to be offered. Up to now the private sector still could not get the big picture due to the lack of information. It means most of the time the infor-

mation only focuses on location and blue print, without initial calculations of profit and loss. "Once they are interested, they have to be supported all the way in getting the permits and business certainty, otherwise they will cancel it," said the president.

Jokowi: Illegal Levies Inflict Investment in Indonesia President Joko Widodo (Jokowi) blamed on the illegal levies and difficult permits of investment in Indonesia as the cause to make Indonesia ranked 109th in the world ease of investing. Based on the survey, Indonesia’s rank is much lower than neighboring countries of Singapore who is top on the list and Malaysia who is at 18th, while Thailand is ranked 49th. "This is our problem to

solve, how will people want to invest if it’s hard to take care the permits and must pay illegal levies here and there," said Jokowi. The eradication of illegal levies, said Jokowi, has become current priority of the government. According to him, the Human Resources (HR) of Indonesia are qualified to make Indonesia a developed country. However, intelligence and skills alone are

Based on the survey, Indonesia’s rank is much lower than neighboring countries of Singapore who is top on the list and Malaysia who is at 18th, while Thailand is ranked 49th

not enough. Jokowi added it takes integrity and good characters to sustain them. "Many intelligent people like to impose fees illegally, this is a ‘disease’ of our nation," he said.

Police, BKPM Guarantee Investment in Kendal Industrial Park, Central Java, Secured (cont) ...currently ranked at 91 in 2016. Of course, the efforts to improve the ease and security of investment continues to be made; so it can be up to 40 like being expected by Mr. President Joko Widodo," he said. The initiation of MoU between the BKPM, the Police, Central Java Governor was followed up with the guidance of BKPM and police cooperation, which is a part of the implementation of deregulation

and de-bureaucratization stipulated in the 13 economic packages to stimulate the growth of the real sector. The ease of investment, whether in the process, time needed, cost and investment security, of is expected to be consistently implemented well in the field, both at the central territory and in the regions. The synergy between the stakeholders, including government, private sector and communi-

ty is very important. Let us establish the perception that Indonesia; especially that Java, is safe for investment and investors. Several security-related issues, often becoming a bottleneck in the investment, are in the form of legal uncertainty, as well as inconsistent implementation of national and local regulations. For example that the manufacturers must operated an industrial estate based

on Law No 3 of 2014 and PP No 142 of 2015, labor strikes, hooliganism, land clearance issues, social insecurity, law enforcement in the form of a deterrent effect and coaching, as well as the readiness of human resources regarding services to investors, both national and foreign or multinational. The speakers agreed that the synergy between the government and the private sector would be able to anticipate these problems in Central

Java, so that investors and industry players would be more interested to come and feel safe. The investors are also protected to enter and participate in the development of Central Java. The security and safety for investors is an important prerequisite to restore the confidence of global investment to Indonesia, especially in Central Java (tpp)

Licensing for Building Plant Outside Industrial Zone Still Difficult (cont) ...license, and the other 13 haven’t been yet due to the problems associated to the land clearance since the land plots are not designed for industrial areas. "Some of the problems are

because they bought the land plots before getting permit, usually buying a plot of land in the farming area due to the low price, without knowing that it cannot be used for building a manufacturing

plant, so the license cannot be processed," Azhar said. He added BKPM would keep trying to facilitate and cooperate with the local government or the relevant stakeholders to provide the

solution. According to him, revising the rules of local government would take time, so the investors are advised to build their manufacturing plants in the nearby industrial estate.

"So the investors who want to build a factory, they should seek the location in an industrial estate or in an area allocated for industry," said Azhar.

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ASEAN Needs to Cooperate to Prevent Cyber Attacks Coordinating Minister for Political, Legal and Security Affairs Wiranto said the cooperation between the countries in Southeast Asia or ASEAN is required to prevent cyber attacks that could destabilize the region. "ASEAN as a region and a part of the global community must prepare itself from the cyber attacks. Do not let cyber attacks inflict on the progress and development of our economy," said Coordinating Minister Wiranto in a written statement. In his written speech at the Singapore International Cyber Week event in Singapore, Coordinating Minister Wiranto also delivered a number of important points, including the cooperation among ASEAN member countries to determine the success of each country in dealing with cyber attacks. During his working visit to Singapore, Wiranto also said the need to develop and

ASEAN as a region and a part of the global community must prepare itself from the cyber attacks

promote the principles and norms applied in cyberspace. "Since the beginning of 2016, Indonesia has been actively participating in the establishment of cyber ethics along with 20 other countries in the UN Government Expert Group," he said.

INFRASTRUCTURE BRIEF RBC Focuses on ASEAN Economic Acceleration

He added the importance of relevant stakeholders to involve in the cyber security. "Cyber crimes do not only threat the government infrastructure, but the companies’ as well, so it should be emphasized that the fight against cyber crimes is a global shared

responsibility," he said. Coordinating Minister Wiranto also stressed on the importance of cyber security tools and the ability of law enforcement. "We can work together to strengthen the law enforcement through increased capacity in joint investigations

and digital forensic among ASEAN law enforcement agencies," he said. In addition, Wiranto said the importance to appoint a contact institution in each country who deals with the cyber security. "This contact list will be very important in facilitating

communication and coordination, including in facing cyber incidents that could inflict two or more ASEAN member countries."

China Lends and Works on Railway Project in Malaysia’s East Coast

The Regional Business Council (RBC), under the World Economic Forum (WEF), was officially established on Wednesday (25/10), in Hanoi, Vietnam, whose members consist of 55 leaders of large companies, 25 companies from ASEAN and 30 from others. Dato' Sri Nazir Razak, CIMB Group Chairman, was appointed as chairman of RBC in the WEF Mekong Region Meeting in Hanoi. In a written statement received in Jakarta on Wednesday (10/26), RBC said it will work on several issues, including how to build infrastructure, promote cross-country trade and investment in ASEAN member countries, develop digital economy, study the future of job opportunity and industry in the region, and support the principle of inclusive growth. "My appointment as the first chairman of RBC ASEAN is a great honor for me," said Nazir Razak. Together with the members of the committee, he said he would make sure RBC do their best to spur public-private partnerships so that the progress in the socio-economy can be accelerated, because the biggest challenge for ASEAN would be overcome if the business entities and the government were able to establish a good cooperation.

I would make sure RBC do their best to spur public-private partnerships so that the progress in the socio-economy can be accelerated

The neighboring country Malaysia has planned one ambitious long-term project of east coast railway to be constructed by a Chinese company and financed by a Chinese loan. This project will be carried out by state-owned contractor from China named China Communications Construction Company Ltd. (CCCC), while the funding will be a loan from the Export-Import Bank of China (EXIM). According to the Treasury Secretary General of Malaysia, Tan Sri Dr Mohd Irwan Serigar Abdullah, the interest of the China's loans was

WEF, which has close ties with the business community, governments, international organizations, academics and experts, is also a suitable means for the companies in ASEAN region in grabbing the opportunities to engage and cooperate with the governments of ASEAN countries as well as with various other parties around the world. He said one of the initiatives to be run by RBC for the first time in 2017 is a strategic infrastructure program, a concept of joint or combination of financing, through the mobilization of the state and private capital. ASEAN, he added, has lagged behind in infrastructure development, and this insufficiency could be dealt with solely relying on government investment. Through joint financing, the government would provide official assistance to deal with the risk of project development to make private investors more interested to get involved in it. Another priority of RBC is to spur small and medium enterprises to grow and flourish in the region.

The project will cover 620 km of railway starting from Port Klang to Tumpat on the border between Malaysia and Thailand lower and competitive compared with other countries. "This project has some positive points. A small town like Mentakab, Dungun and Tumpat along this railway would benefit from the development," he said after welcoming the arrival of Prime Minister Datuk Seri Najib Razak at the China World Hotel. Mohd Irwan said the

This project has some positive points. A small town like Mentakab, Dungun and Tumpat along this railway would benefit from the development

working contract and the lending will be signed during the prime minister's visit to China.

This project will begin in 2017. The project will cover 620 km of railway starting from Port Klang to Tumpat on the border between Malaysia and Thailand. This railway is expected to facilitate the flow of exports from various industrial areas to the main port of Malaysia in the Straits of Malacca, Port Klang. This railway is also vital for China, considering that it will pass through the joint industrial estate of Malaysia - China in Pahang state.



November 2016 | Vol. 5 No. 44


RI Consulate General in Osaka Hands Primaduta Award 2016 to Japanese Companies

The Primaduta Award 2016 was awarded by the Indonesian President to the representatives during the opening ceremony of Trade Expo Indonesia 2016 on 12 October 2016

On 28 October 2016, the Indonesian Consulate General in Osaka handed Primaduta Award 2016 to three Japanese companies during an event held in Kagairo Restaurant, New Otani Hotel Osaka. The Primaduta Award 2016 was received by the representatives of the companies, as

follows: Kimura Co. Ltd. was represented by Mr. Shoji Kimura (Representative Director) and Ms. Yoko Kimura (Director); Kyodo Foods Products Co. Ltd. was represented by Mr. Mitsuo Nishio (Managing Director) and Mr. Hiromasa Haruki (Manager of Import Section); and Sojitz Foods Co.

Ltd. was represented by Mr. Setsuhisa Inoue (Senior General Manager of Kansai Branch) and Mr. Katsuya Nishiuma (General Manager, Foodstuff Dept). The three companies have expressed gratitude to the Government of Indonesia for the Primaduta Award 2016 they

received. The Consul General in his speech expressed his appreciation and hope that the good trade cooperation would be maintained and enhanced in the future. The Primaduta Award 2016 was awarded by the Indonesian President to the representatives during the opening

ceremony of Trade Expo Indonesia 2016 on 12 October 2016. The three Japanese companies won the Primaduta Award 2016 in the category of manufactured products are Sojitz Foods (Tokyo) and Kyodo Foods (Osaka) and the winner of Primaduta Award 2016 for the category of small and medium

enterprises products is Kimura Co. Ltd. (Osaka). Primaduta Award is awarded to foreign companies importing Indonesian products on an ongoing basis with significant value and positive trends as well as participating in the promotion of Indonesian products in their respective country.

Indonesia Investment Day II in Milan Italy Attracts Entrepreneurs Approximately 75 Italian businessmen have explored the investment opportunities in Indonesia during the Indonesia Investment Day II on 26 October 2016 in Milan, Italy. The infrastructure, energy, manufacturing and marine became the key business sectors to be promoted in event held by Indonesian Embassy in Rome in the cooperation with the Investment Coordinating Board and the Coordinating Ministry for Maritime Affairs. Indonesian Ambassa-

dor to Rome, August Parengkuan, said in his speech that the annual event was an effort to improve Indonesia's image in Italy which has been carried out continuously. This activity was also intended as a venue for the socialization of the latest economic policy (vol. 13) issued by the Government of Indonesia to provide various facilities and advantages for foreign companies who want to invest in Indonesia. Most of the invited

The annual event was an effort to improve Indonesia's image in Italy which has been carried out continuously

entrepreneurs attending the event were those who were not quite familiar with the investment climate in Indonesia. However, there were also some businessmen who already have a business in Indonesia and were expected to make bigger investments. The selection of business sectors of infrastructure, energy and manufacturing as the focus of the promotion is in line with Indonesia government’s priorities intending to develop various

types of businesses in order to support economic growth in Indonesia. Besides, there are big opportunities for foreign entrepreneurs to invest in the sectors. The selected sectors also became the main attraction for the Italian entrepreneurs who considered them to have distinctive values. Attended the event were Deputy Head of BKPM for Investment Promotion, Dr. Himawan Ahriyoga who socialized the latest developments of Indonesian govern-

ment’s policy package that makes it easier for foreigners to invest in Indonesia in the four sectors mentioned above. There was also a presentation by Deputy Minister for Coordination of Infrastructure, Coordinating Ministry of Maritime Affairs, Ridwan Djamaluddin PhD, concerning various cooperation opportunities of infrastructure projects planned to be built by Indonesian government in the medium and long term programs.

Indonesia held Culinary Festival 2016 in Texas Consulate General of the Republic of Indonesia in the city of Houston, Texas, United States held a culinary festival titled with Indonesian Culinary Festival 2016 on November 5, 2016. The festival is an effort of Consulate General of Indonesia in Texas to promote Indonesian culinary in the United States. This year is the third year of the culinary festival. This year festival has attracted more than 2,500 visitors and are held in cooperation with Consulate General in Houston and the communities in Indonesia in Houston. In his speech, Consul General Henk Edward Saroinsong conveyed that the culinary

Indonesia culinary

festival is a promotion that was conducted by the Consulate General of Indonesia in Houston to introduce special menu to the community in Houston and surrounding areas.

"In addition, this festival is a momentum to introduce how diverse cultural richness of Indonesia. More than 100 Indonesian dishes originating from Sabang to Merauke enjoyed by

visitors, "Edward said, Sunday (11/6). Besides the culinary festival, Indonesian Consulate General in Houston also presented performances of

the Houston’s local governments expressed appreciation for the convening of the festival. "The festival is becoming one of the major events that celebrate the diversity of Houston society that upholds multiculturalism," said Merchant. In addition to promoting the culinary and culture of Indonesia, this festival is also used as a venue for charity fundraiser, where the sale of food is partly music, traditional dance and set aside for donations will be donated to Indonesian children song to enliven the festival. disabilities, street Houston Mayor who represent- with ed the Executive Committee children, and children who Houston Citizenship of the need educational assistance in Month, Sam Merchant, said that East Nusa Tenggara.

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Industry Minister Urges Industrial Parks Managements to Improve Competitiveness

Industry Minister Airlangga Hartarto has called on the developers and managements of industrial parks, especially those under the Indonesian Industrial Estates Association (HKI), to improve the competitiveness of industrial estates in the country. It aims to make them more attractive for investors to expand their businesses in the industrial parks. "Under the Law No. 3 of 2014 on industry, the new industrial companies are obliged to be located in the industrial parks," he said at the National Seminar and National Deliberation VII of HKI in Jakarta on Thursday (27/10). Airlangga said the prospects for the development of industrial estates in Indonesia in the future were very promising since the demand for industrial land kept increasing.

It aims to make them more attractive for investors to expand their businesses in the industrial parks

The industrial parks must also work together with the local governments in solving various problems may arise

To that end, said the minister, the industrial parks should be mutually connected and integrated to avoid become the burden of the road infrastructure in their surroundings. “The industrial parks must also work together with the local governments in solving various

problems may arise. In addition, the industrial estates should pay more attention to SMEs to make them connected to the industrial parks." Airlangga added if the efforts implemented properly, it would improve the competitiveness of the industrial parks

as well as bringing in multiple effects on the economy of the community and the state. "This suits the President’s Nawa Cita to build Indonesia from the periphery to strengthen regions and villages within the framework of the unity of the nation through increasing productivity

and competitiveness," he said. Meanwhile, HKI Chairman Sanny Iskandar said the association has become a strategic partner of the government, especially the Ministry of Industry in terms of providing input in the preparation of regulations, promotional activities

abroad, and problem solving at the local level. "HKI is a single forum for developers and managements of industrial estates with the status of bonded, small industry areas with the status of special economic zone." The ministry’s data shows the industrial zones, whether managed by the SOEs and private sector, have been developed in 15 provinces or 34 regencies/cities. A total of 73 companies managing industrial estates are registered as members of HKI with a total area of 54650.52 hectares. "The industrial parks have managed to realize the operation of manufacturing industry of about 9,200 companies which generate jobs for as many as 3.68 million," said Airlangga.

Minister Rini: SOE Focuses on Infrastructure Investment


Minister Susi Offers Investment to Foreign Minister of Australia

Minister for State Owned Enterprises (SOEs) Rini Soemarno said her ministry would use the State Capital Participation (PMN) for investment in infrastructure. "SOEs are currently concentrating on increasing the investment in connectivity infrastructure, whether on land, sea and in the air," Rini said in a press conference of Two Years Work Experience Jokowi-JK held by the Ministry of Communications and Information Technology together with the President Staff Office in Gedung Bina Graha, Ministry of State Secretariat, Jakarta on

Maritime Affairs and Fisheries Minister Susi Pudjiastuti has offers investment opportunities in the marine sector to the Australian Foreign Minister Julie Bishop, who paid a visit to the Maritime Affairs and Fisheries Ministry in Jakarta on Wednesday (10/26). "I'm offering a cooperation of investment in the fisheries especially fishing ports," said Susi Pudjiastuti. Susi explained the bids has been opened for the construction of fishing ports located at a number of locations namely Sabang, Natuna, Morotai, southern Java, Lombok Timur, and Papua. In addition, she said, her ministry together with Australia also continued to cooperate in the fight against illegal fishing. Other cooperation, added Minister Susi, was in the field of monitoring and sharing data from the satellite to monitor the sea. Meanwhile, Australian Foreign Minister Julie Bishop said she appreciated and praised the achievements of Minister Susi in setting up cooperation in the international level. The Australian minister also said together with the minister of Marine Affairs and Fisheries she had discussed a number of things several times with positive outcome. One issue discussed, among others, said Julie Bishop, was the implementation of the concept of "blue economy". Another issue, she added, was about the utilization of marine resources as part of economic growth. "We also want to continue to work together in coral reef initiative programs to its environment," she said.

Tuesday (25/10). Rini explained in 2015 the SOEs was allocated around Rp 41 trillion of PMN funds while the capital expenditure amounted to Rp 219 trillion in the same year. Meantime in 2016, the minister said the committed investment amounted to Rp 410 trillion. "In 2016 we got a committed investment of approximately Rp410 trillion. However the PMN funds have not been disbursed yet. We hope the disbursement will happen soon," said Rini. She also explained that in 2017, her ministry would get

or airports, but also the electricity grids and substations," said Rini. In 2016 we got a committed Meanwhile, Finance investment of approximately Minister Sri Mulyani said in the Rp410 trillion. However the last two years large capital PMN funds have not been expenditures have been allocatdisbursed yet. We hope the ed for infrastructure and PMN disbursement will happen funds through SOEs. Sri added soon in the 2015-2016 Budget, the PMN funds amounted to Rp 115 trillion. a commitment of investment "Of course the investamounting to Rp 550 trillion. ment must and will generate Rini said that the development positive outcomes," said Sri. and economic growth could be driven by infrastructure building in Indonesia. "It's not just toll roads



November 2016 | Vol. 5 No. 44

The Region

Ganjar Intends to Make Central Java Pilot Province of Illegal Levies Free The governor also urged him to participate in the clean-up movement of any kind illegal payments thoroughly Central Java Governor Ganjar Pranowo swore in Budi Prabowo as acting (Plt) Regent of Brebes in the governorate building complex, Semarang, on Wednesday (10/26). Budi Prabowo, who previously served as assistant 3 at Secretariat of Central Java, will carry out the tasks of Brebes Regent for 4 months after incumbent Idza Priyanti had to resign to prepare herself running for the upcoming election of Brebes Regent on 15 February 2017. During the inauguration ceremony, Ganjar called on the acting regent to keep the office conducive. The governor also urged him to participate in the clean-up movement of any kind illegal payments thoroughly. "Central Java should be an example for a province free of illegal levies in Indonesia, and the acting regent should participate in it," said Ganjar. Regarding the conditions of

Brebes, Ganjar encouraged the acting regent to pay attention to the entire region of Brebes which is extensive and unique. All parts should be improved for the welfare of Brebes society. "Infrastructure is still unfinished business though it has been improving, while the infant and maternal mortality need more serious attention from the acting regent," he added. Idza Priyanti in her speech said that she expected Budi Prabowo to be able to cooperate with the executive and legislative officials to complete the programs to 100 percent. As the incumbent regent, Idza still has to run the programs until 4 December 2017. At the same time, the governor also inaugurated Ikhwan Sudrajat as Acting Regent of Jepara replacing incumbent Regent Marzuki.

West Java Establishes Sister City Partnership with Guangxi Zhuang strategic partnership in early December 2016, when officials of West Java Administration will pay a working visit to Nanning City, PRC. Deddy Mizwar said that such the cooperation would cover the areas of education, tourism, culture, trade and investment, improvement of technical and management capabilities of state officials, rural development, urban and settlement, as well as the development of science and technology.


Vice Governor of West Java Deddy Mizwar received Deputy Governor of Guangxi Zhuang Autonomous Region, Mr. Chen Gang, Mayor of Nanning, Mr. Liang Yi, along with other delegations in trade, at Gedung Sate Bandung, on Wednesday (10/26). This visit aimed to set up Sister City partnership between West Java Province and Guangxi Zhuang Autonomous Region, People's Republic of China. The plan is that both parties will sign a MoU of

The provincial government has also proposed to participate in the Windows To Remarkable Indonesia (WTRI) to be held in Guangxi, China, in 2018

The cooperation is expected to be able to provide benefits to increase prosperity and progress of development in both sides, especially for West Java, which is currently focusing on the provision of quality infrastructure and people-based local economic development, as part of the efforts to make West Java the most developed province in Indonesia, said Deddy. He added that the provincial government has also proposed to participate in

the Windows To Remarkable Indonesia (WTRI) to be held in Guangxi, China, in 2018. The event would become a distribution center for Indonesian products and then open up the market access for Indonesia amid the current global economic downturn. "Therefore we asked the Chinese delegation to provide information about the market in China so that the products of West Java will be able to penetrate it," he said. Earlier the West Java

provincial government has also been honored by the invitation of the Government of Guangxi Zhuang to attend The 11th China Asean Expo in Nanning City, a venue for the international promotion and highly potential for the improvement of China's economic relations with ASEAN countries. The event provided a good opportunity for the development of market accesses for West Java products to the Asian region.

Banten Expo, Venue for Products Information of SMEs in Banten Banten Provincial Government organized an exhibition of investment and development outcomes titled "Banten Expo 2016" as a part of a series of Banten 16th Anniversary at the public square in Serang on 21-25 October 2016. The exhibition, displaying various exhibits of investment, construction information, services and craft products as well as investment potential areas in Banten Province, was officially opened by Banten Governor Rano Karno in Serang on Friday (10/21). "We set up 160 booths, including 21 of banking entities

in Banten and three from other regions as well as dozens of small medium enterprises (SMEs) and representatives of other provincial and local governments," said Head of Industry and Trade Office of Banten Province Wahyu Wardhana. He said Banten Expo was expected to become a venue to provide information about the products made by the SMEs in Banten, the development projects and the investment opportunities in Banten. After officially opened by Governor of Banten Rano Karno, Banten Expo was imme-

diately crowded in by people who want to see the displays of development achievements in the exhibition. Banten Governor Rano Karno said the Banten Expo was expected to be bigger in the future and not only featured Banten whether provincial, districts and cities in Banten, but would also involve all other regions in Indonesia. "In the future Banten Expo should be wide open, like the Jakarta Fair. We must have the courage to do that, for example, by organizing it in a more spacious place, we have such a place like ICE in

Tangerang," said Rano after Banten Expo was expected to be bigger in the future and opening and visiting the booths not only featured Banten whether provincial, districts and cities in Banten, but would also involve all other regions in the Banten Expo 2016. According to him, Banten Expo is an opportunity for the public and SMEs to get a wide range of knowledge and experience and created innovations in product development as well as the marketing. "It's an opportunity to pave a synergy between the government, the SMEs and the banks as well as to promote a wide range of potential areas. Hopefully, this expo could be used to open up business opportunities and drive the economy in the region," said Rano Karno.

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Priok Power Plant Project Gets USD310 Million Fund from Japan PT PLN (Persero) has signed a funding agreement with Japan Bank for International Cooperation (JBIC) for a gas-fired power plant project (PLTGU) in Tanjung Priok, amounting to USD310 million. The 800 megawatts (MW) capacity PLTGU is one of the projects of 35,000 MW electricity crash program. Business Director of PLN Regional West Java Murtaqi Syamsuddin said the overall cost of the 800 MW Priok power plant project was USD437 million. PLN spends USD127 million and the other USD310 million is financed by a syndicated loan of banks led by JBIC. Some of the other banks involved in financing are Bank of Tokyo Mitsubishi UFJ, Mizuho and ANZ. The loan is a direct scheme without Indonesian government’s guarantee. This is the second time the JBIC is willing to provide a direct loan to PLN without government’s guarantee.

The Priok 800 MW power plant project will be constructed by Mitsubishi in partnership with PT Wasamitra Engineering in the scheme of EPC (Engineering Procurement Construction)

"The first project funded by JBIC without government’s guarantee is Lontar 315 MW power plant, now under construction," Murtaqi said in Jakarta on Thursday (10/20). He further explained that the loan was long-term

INFRASTRUCTURE BRIEF To Boost Borobudur Tourism, Govt to Construct 100 Km Yogyakarta-Bawen Turnpike

with a tenor of 15 years. The funding scheme without government’s guarantee has become an alternative financing apart from the bond market and multilateral institutions. "The advantage is PLN will not be affected by negative carry, in addition to the quite fast

process," he added. The Priok 800 MW power plant project will be constructed by Mitsubishi in partnership with PT Wasamitra Engineering in the scheme of EPC (Engineering Procurement Construction). The land for the project is owned by PLN and

land clearance has been done in order to be submitted to the EPC contractor. "The project is expected to be completed in mid 2019," Murtaqi said. The Priok project is an 800 MW natural gas-fired power plant, to be playing a role

as a load follower by supplying electricity while maintaining the quality of the voltage for the city of Jakarta and Java-Bali system as a whole.

Govt Builds Maros Curved Flyover in Sulawesi, Here Are the Benefits

Similar to the Kelok 9 flyover in West Sumatra, the Maros flyover will make the passage be more easily to traverse by the logistic transport vehicles. The Ministry of Public Works and Public Housing (PUPR) is building a curved flyover in Maros. This flyover will connect Bone and Maros regencies in South Sulawesi. PUPR Minister Basuki Hadimuljono said the flyover would facilitate the economic activities in the Makassar-Maros-Bone corridor. "The existing road is

quite narrow and steep to accommodate the trucks," he said during his on-site visit on Sunday (10/31). Similar to the Kelok 9 flyover in West Sumatra, the Maros flyover will make the passage be more easily to traverse by the logistic transport vehicles. The current existing road is difficult to pass through by

Borobudur temple has become one of the tourism sites under the priority development program along with Lake Toba in North Sumatra and Mandalika in West Nusa Tenggara. In order to boost the tourism in Borobudur, the government plans to build a toll road connecting Bawen in Semarang Yogyakarta with the length of 100 km. This project is included in the master plan of the Ministry of Public Works and Public Housing up to 2025. "In PUPR Ministry’s master plan up to 2025, there is the Bawen-Yogyakarta turnpike project. It is scheduled to start in 2018, but the feasibility study (FS) is about to begin and will start to build it afterward," said Head of Development of Regional Infrastructure (BPIW ) Rido Matari Ichwan at the PUPR Ministry, Jakarta, on Friday (28/10). "Based on the analysis of our colleagues in the Tourism Ministry, the toll road is very good for the acceleration of tourism development in Borobudur. So they proposed to carry out the project in 2017 and we will try it once the FS completed. Then, normatively we will conduct a tender after the ground plan is prepared," he added. However, the budget for the turnpike construction has yet to determine, pending the feasibility study which is expected to begin next year. In its budget of 2017, the PUPR Ministry will allocate Rp 74.1 billion for four sectors. The Water Resources will get Rp 16.5 billion, Bina Marga (road construction and maintenance) Rp 36.6 billion, the Human Settlements Rp 17.6 billion and the Housing Rp 3 billion.

The flyover is to improve geometry of the existing road with the purpose of facilitating the economic activities in Maros and Bone

large-sized logistics vehicles. As a result, the transports of logistics between the locations become hindered. The cost of logistic shipments becomes expensive that causes rising prices of goods. "The flyover is to improve geometry of the existing road with the purpose of facilitating the economic activities in Maros and Bone," he

said. In addition to the construction of the flyover, Basuki further said, the road leading to the flyover will be widened, as well as installing a support bridge and box culverts to be used as storage of utilities such as electrical wiring and others.



November 2016 | Vol. 5 No. 44


Get Ready to Welcome Pesona Bahari in Tanjung Lesung Tanjung Lesung is one of 10 destinations under the priority tourism development program by the Tourism Ministry

The Special Economic Zone (SEZ) of Tanjung Lesung, Banten, will hold a special tourism event on 18-20 November. Titled Pesona Bahari Tanjung Lesung, the event is a result of the cooperation between the administrations of Banten Province and Pandeglang Regency. Tanjung Lesung is one of 10 destinations under the priority tourism development program by the Tourism Ministry. Basith Boma as the committee representative of the Pesona Bahari Lesung Tanjung said, there will be many unique shows to be presented at the event. "This is an activity for

Indonesian tourism. It is the collaboration between Banten Province and Pandeglang Regency with the frame of educational marine entertainment. Please come to the event," he said. He added the Pesona Bahari Tanjung Lesung will consists of series of programs, starting from the contest of photography, modern boats and joy sailing, the launching of Batik Cikadu and Wonderful Banten, seminar on human resources (HR) of tourism, tourism camp for Scouts and Bebegig Festival, as well as the Festival of Culinary and Handicraft.

Tour de Linggarjati Elevates Kuningan Tourism A dual mission is carried out by the Ministry of Tourism (Kemenpar) in the Tour de Linggarjati (TDL) in 2016, Kuningan, West Java, namely to succeed the international standard event and to elevate the Indonesia's tourism with a variety of local contents. "Kuningan has been trying to go international for a long time. For example, by introducing the angklung to the world. In the past, angklung from Kuningan was ignored, but now it is proudly recognized by

attractions, the access until to the amenities. Assigned to substitute the tourism minister in Kuningan, Ukus said the 3A elements in the event still needed to be improved. "Attraction has to be improved, as well as Access or infrastructure, should also be in good condition. Then the Amenities like hotels, restaurants, cafes, and others should be enhanced too," he said. "Similar to Jakarta which has Puncak, Bogor, for weekend holiday, Cirebon has Kunin-

UNESCO. The passion and struggle to make angklung universal music instrument has inspired Tour de Linggarjati," said Secretary of Tourism Minister Ukus Kuswara during a Welcome Party attended by the entire officials of Kuningan Regency and bikers in the Kuningan Regency Hall, West Java, on Thursday (10/27). Ukus added that in the future TDL should be held more comprehensively, starting from the preparation, the

gan. If it can be made more attractive, then Jakartan people will go to Kuningan for holiday. The air is cool, located on the foot of a mountain, and relatively close to Jakarta." High optimism was also shared by TDL 2016 Committee Chairman Dian Rachmat Yanuar. “This event will surely become the face of Kuningan to the eyes of national and international tourism.” Tour de Linggarjati

covers a distance of 345 km passing through 132 villages and 20 districts. No less than 15 professional clubs participate in the event, with 75 participants from 8 countries. The countries taking part in the event are Malaysia, the Philippines, Brunei, Laos, Britain, Spain, the Netherlands and host Indonesia. "They enjoy the natural scenery of Kuningan," said Dian. Kuningan Regent Acep Permana said in his speech said visiting Kuningan

guaranteed would be guaranteed for not regret. Kuningan has clean air and very fresh. Free from pollution because the regency is located on the foot of Mount Ceremai, inheriting the wealth of natural tropical forests which are sustainably maintained.

SOEs Develop Tourism in Labuan Bajo activities will be led by Bank Mandiri as a part of the celebration of its 31st anniversary held from August to October. According to the Head of Public Relations and Protocol at Ministry for SOEs Teddy Poernama, Labuan Bajo was selected to hold the meeting to support the development of Labuan as one of the special economic zones in the tourism sector. Previously, a similar meeting was held in Lake Toba, North Sumatra. "We want the presence of state-owned enterprises can provide added value which is better and equitable for all com-

munities in the country. Hopefully through this series of activities, the tourism in Indonesia, especially in Labuan Bajo can grow better, boosting the economy and prosperity for the people in the eastern part of Indonesia," he said on Wednesday (10/26).

State-Owned Enterprises (SOEs) continue to realize its commitment to support the government's program to develop tourism in the country. One of the efforts is to hold a leadership forum and conduct social activities in the field of education and infrastructure in Labuan Bajo, West Manggarai, East Nusa Tenggara (NTT). A series of programs in the leadership forum and social activities titled SOEs Synergy for the Nation will take place on 27-29 October 2016, which will be attended by Minister for SOEs Rini Soemarno and all the executives of SOEs. The

We want the presence of state-owned enterprises can provide added value which is better and equitable for all communities in the country

November 2016 | Vol. 5 No. 44 | THE PRESIDENT POST


Twitter: @President_Post Facebook: The President Post




Direct Investments in Indonesia Reaches Rp453 Trillion

Surviving Globalization Crush with Selfidentity

Government Relies on Dry Ports to Reduce Dwelling Time

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Wika Wins Contract of Turnpike Project Worth at Rp6.58 Trillion

State-owned construction company PT Wijaya Karya (Persero) Tbk. has secured a contract for designing and constructing the toll road of Balikpapan-Samarinda sections 2, 3 and 4 worth at Rp6.58 trillion. Wijaya Karya Corporate Secretary Suradi said the company was selected as the winner based on the evaluation of administrative requirements, technical matters, pricing, qualification and verification undertaken by PT Jasamarga Balikpapan Samarinda chapter. "According to the plan, this project will finish in 26 months of working calendar," he said on Wednesday (2/11). Suradi explained that Wijaya Karya won the new contract early October 2016 for lowest bid, amounting Rp40.13 billion or 76% of the target of Rp52.8 trillion. A number of projects have been obtained by Wijaya Karya include the Balikpapan-Samarinda toll road, the production of box girders for elevated railway of Medan-Kuala Namu, the Maros-Bone flyover, Bawen-Solo toll road section 2 as well as automatic people mover system for Soekarno-Hatta Airport. The other projects are Kuwil Reservoir in Manado, a design review service for Oecusse Airport in Timor Leste, the flats for athletes in Kemayoran, the Semanggi flyover, the renovation of Velodrome Jakarta, the Kramasan flyover and so forth.

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PT Angkasa Pura II Disburses Rp1.33 Billion for Small Enterprises PT Angkasa Pura II has organized a meeting with a number of small enterprises in the disbursement of funds for environment and entrepreneurship. "Today we channel Rp1.33 billion to our partners to develop their businesses," said Vice President of CSR PT Angkasa Pura II Wandi Anhar at Soekarno Hatta Airport, Tangerang, on Monday (10/31). Wandi explained it was very easy to apply for a business loan to PT AP II. The applicants only need to submit a proposal which will be followed up by PT AP II. "The only requirement is the business must have been run for at least 1 year," he said. The team of PT AP II will see on the business bookkeeping and they will conduct a survey to the location afterward. "If everything meets the conditions, we disburse the fund. The interest rate is only at 6 percent per year," said Wandi. There are 32 kinds of business today which gets

the lending. In addition to the entrepreneurship, PT AP II is also concerned about the environment. "We also distribute some funds for environment activities around the Airport Railway, such as building toilets, a kindergarten, an Islamic boarding school, a library, providing an ambulance, and others," said

Human Capital and Finance Executive Manager of Soekarno-Hatta Airport Indah Suryandari. According to Indah only small entrepreneurs located around the airport who will get the lending funds. "So there will be only the residents of Tangerang City and Tangerang Regen-

cy," she said. If the borrowers were late or unable to repay the loan, PT AP II would come to the location and review the business to know the problem and resolve it. "There is no collateral for this loan. This is not a bank. There is no illegal levy either,� she said.


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2016 | Vol. 5 No. 44

Finance FINANCE BRIEF Unilever Indonesia (UNVR) Books 13.64% Increase in Profit

The net income of PT Unilever Indonesia Tbk. (UNVR) rose by 13.64% in the third quarter of 2016 compared to the same period last year. The financial report on Wednesday (10/26) showed that in the third quarter of 2016, the company managed to earn net income of Rp4.75 trillion or an increase of 13.64% compared to the same period last year of Rp4.18 trillion The profit increase was generated by higher sales of the company which rose by 9.25% to Rp30.10 trillion from the previous Rp27.55 trillion. For further details, the domestic sales amounted to Rp28.49 billion, while exports reached Rp1.61 trillion in the third quarter of 2016. In the third quarter of 2015 the domestic sales and exports were recorded at Rp26.13 trillion and Rp1.41 trillion respectively. Meanwhile, the cost of goods sold rose to Rp14.80 trillion from the same period last year of Rp13.58 trillion.

Electronic Money Supply Reaches 45 Million

The number of electronic money in circulation keeps increasing day by day. Up to September this year, the number of electronic money circulating in Indonesia reached 45 million. The challenge in developing electronic money in Indonesia is closely related to people's habit of using cash. The legal protection of electronic money is stipulated in Bank Indonesia Regulation (PBI) No. 16/08/2014 about electronic money. "The majority of the people do not want to use the electronic money because cannot change their habit of using cash. They do not see the benefits of having electronic money," said CEO of Frontier Capital Handi Irawan in Jakarta on Wednesday (2/11). The electronic money should continue to be developed so that it can offer all the advantages of cash. Three things must be there are simplicity, universal, and speed. Now e-money has not been integrated yet so people have to bother carrying a variety of cards which actually all are electronic money. "It should be a way to make one card for all purposes to avoid the complication," said Head of Jakarta Communication and Transportation Office Andri Yansyah. On the other hand, the electronic money services should also be standardized. Other than transportation, the electronic money should be able to be used for various other public services, especially those under the programs run by the government. Although the public transport is considered a potential sector for developing the electronic money, it is not necessarily without obstacles. One obstacle highlighted is the number of private vehicles is still higher than public transports.

Bank Mandiri's Net Income Down by 17 Percent

During the same period, the company has also succeeded in reducing interest expenses by 9.7 percent on an annual basis due to increase of low-cost funds

PT Bank Mandiri (Persero) Tbk recorded a net income of Rp12 trillion in the third quarter of 2016, decreasing by 17.6 percent compared to the same period last year which amounted to Rp14.6 trillion. President Director of Bank Mandiri Kartika Wirjoatmodjo said the decline in profit was associated with the bank's decision to increase the provision charge by Rp8.5 trillion to Rp15.9 trillion in September

2016 as an act of anticipation. "The increase in provision charge was indeed suppress our net income to Rp12 trillion, down by 17.6 percent from September last year," he said in Jakarta on Tuesday (10/25). However, he said, the decline in net income in the third quarter of 2016 was better than the second quarter of 2016 which was down by 28.7 percent. It is considered a positive signal that the compa-

ny's performance will get improving in the future. "We are optimistic we will soon return to positive outcome in the company's financial performance in line with the projected economic recovery next year," he said. Meantime if the provision charge was not taken into account, the Pre-Provision Operating Profit (PPOP) reached Rp31.9 trillion, or an annual growth of 16.4 percent,

Inflation in January-September 1.97 Percent

Inflation during the two-year reign of Joko Widodo (Jokowi) -Jusuf Kalla (JK) remains low and under control. Based on the data of Central Statistics Bureau (BPS) the Presidential Staff Office (KSP) announced the inflation in September 2016 was 3.07% or lower than September 2015 (YoY/Year on Year) of 6.83%. Meantime the inflation from January to September 2016 (YoD/Year to Date) was

recorded at 1.97%, lower than the inflation from January to September 2015 at 2.24%. During the two years of Jokowi-JK leadership, the investment also grew significantly. Based on data from BKPM (Investment Coordinating Board), the Presidential Staff Office (KSP) reported that during the first half of 2016, the realization of investments grew by 14.8% over the same period

in the previous year. KSP reported that the realization of investments in the first half of 2016 reached Rp298.1 trillion. Therefore by the end of 2016 the totaled realized investments are expected to be higher than 2015's Rp545.4 trillion. In terms of the sources of investment, foreign direct investment (FDI) in the first half of 2016 reached Rp102.6 trillion (34.4%), while domestic

Indonesia Economic Growth Driven by "Lebaran" The Indonesia's economy grew 5.02% in the third quarter of 2016. However the economic growth from the period of January-September 2016 reached 5.04%. According to the Head of the Central Statistics Bureau (BPS), Kecuk Suhariyanto, there are three sectors with the

highest growth in the third quarter of 2016. "The first is the transportation and warehousing at 5.34%. The second is agriculture, forestry and fisheries at 4.69%. The third is construction at 4.36%," he said in his office on Monday (7/11). Meantime on annual

which indicates the Company's operations are still quite solid. During the same period, the company has also succeeded in reducing interest expenses by 9.7 percent on an annual basis due to increase of low-cost funds. The operating efficiency resulted in lower costs over revenue ratio (CIR) from 43.1 percent to 42.8 percent.

basis (year on year), the highest growth is contributed by the sector of information and communication at 9.2%. "The records show that the demand for data services significantly increased during Idul Fitri holiday," he said. The second highest is financial services and insurance which

grew 8.83%. This growth was driven by the increase in credit at 8.56% and operating interest income at 5.16%. The rest are the manufacturing grew 4.56%, the agricultural industry 2.81%, and the trade sector 3.65% on an annual basis.

investment in the same period reached Rp195.5 trillion (65.5%). From the figures, it is estimated the total realization of FDI and domestic investment for the whole year 2016 will be higher than those in 2015. Last year, the FDI reached Rp179.5 trillion (32.5%) while the domestic investment reached Rp365.9 trillion (67.1%).

November 2016 | Vol. 5 No. 44 | B3


Apple Explores Possibility to Build Innovation Center in Indonesia

Direct Investments in Indonesia Reaches Rp453 Trillion

Industry Minister Airlangga Hartarto said the information technology company from the United States, Apple, has been exploring the possibility to build an innovation center in Indonesia. "We are still discussing with Apple. Apple may invest to build three innovation centers in Indonesia," said Airlangga met on the front yard of State Palace, Jakarta, on Monday (31/10). According to Airlangga, the construction of Apple innovation centers in Indonesia would work on the researches and innovations on software. The investments needed to set up the three Apple innovation centers would be Rp1.1 trillion. The minister said his ministry and Apple were finalizing the plan, including the selection of cities where the innovation centers to be located. "They will be recruiting Indonesian workers and train them to work in the Apple environment for creating Apple software," said Airlangga. The minister explained that Apple was interested in building innovation centers in Indonesia due to its huge market. Other than that, Airlangga added, the creativity of Indonesian people also became one of the considerations of Apple to build the innovation centers in Indonesia. "Surely by considering these, the capability of the people and the potential of the big market, they want to exist in Indonesia," said Airlangga

The data of Investment Coordinating Board (BKPM) show the realization of direct investments during the first nine months has reached Rp453,4 trillion, up by 13.4 percent from the same period the previous year of Rp400 trillion. Deputy for Control, Investment Implementation at BKPM Azhar Lubis said that the relatively small growth was caused by the slowdown of global and regional economy. However the growth, according to him, was considered to be good enough for the direct investments in Indonesia on an annual basis. He also said that the realization of domestic investments (PMDN) from the beginning of the year until the end of September has reached Rp158.2 trillion, increasing by 18.8 percent. Meantime the realization of foreign direct investments (FDI) has been at Rp295.2 trillion, up by 10.6 percent. "The realization of investments has provided employment for 960,041 people," he added. Despite the relatively small growth, Azhar said that BKPM


was confident to be being able to reach the target of realized investments at Rp594.8 trillion this year or an increase of 9.06 percent compared to last year's Rp545.4 trillion. The target was made up of FDI Rp208.4 trillion and domestic investments at Rp386.4 trillion. The confidence was based on the amount of realized investments which until September have reached 76.2 percent of the target. Azhar also

said that the existing committed investments amounted to Rp1,800 trillion, so BKPM would pursue the investors to carry out their investment commitments. "Commitment without realized is nothing, but we've seen people’s interests to invest here. That's the thing we want to maintain by promoting various business facilities and infrastructure development. We see this like a glass half empty

which we have to fill in, with plenty of rooms to fill," he said. Separately, Head of BKPM Thomas Lembong said that the realization of investments in Java reached Rp250.3 trillion up by 14.1 percent on an annual basis from the previous Rp219.3 trillion in the same period last year. Meanwhile, the investments outside Java rose to Rp203.1 trillion, up by 12.4 percent from the previous Rp180.7 trillion.



November 2016 | Vol. 5 No. 44


Surviving Globalization Crush with Selfidentity By Martono Yuwono

Tugu Indonesia Poros Maritim Dunia (alternatif 1); 2. Bandar lama Sunda Kelapa; 3. Mesjid Al Aydrus Kp Luar Batang; 4. Galeri Nusantara; 5. Menara Palapa Nusantara (alternatif 1) ; 6. Kali Besar; 7. Taman Fatahillah; 8. Stasiun Beos – Kota

When globalization starts to fading away the boundaries of state and nation, selfidentity becomes vital for survival. Strong selfidentity will make a country or a nation appear more prominently in the middle of the tendency of uniformity due to globalization. A number of countries, which now have developed well, realized early on the importance of strengthening of the selfidentity. Japan, for example, when facing the need of modernization during the Meiji Restoration in 1866 - 1869, urged by the samurai the modernization program was carried out by maintaining Japanese nationalism, known as 'bushido', being the power of cultural tradition which is non-tangible. Meanwhile, a number of other countries prefer to accentuate the physical symbols that are tangible, such as buildings and cities, to reflect on their selfidentity. The Poland revived its national pride in overcoming the humiliation trauma by German Nazi during World War 2 through the restoration of the ancient civilization center, the old town of Warsaw destroyed in World War 2. The restoration of Warsaw is a symbol of the rebirth of confidence, honor and glory of the nation. UK then Prime Minister Margaret Thatcher issued a policy to revive seven old ports to evoke the

past sense of pride "Britain rules seven waves" in the program "Action for Cities." This policy involved the participation of wider community in the form of Public-Private-Partnership applied in seven ports in London, Liverpool, Black Country, Trafford Park, Teesside, Tyne and Cardiff. In the United States of America, when economic recession hit in the 1970s, an innovation in city planning called "Baltimore formula" was born to resolve the bankruptcy of the city by preserving the old port of Inner Harbor. The revitalization of Baltimore’s Inner Harbor is an American success story, which is beyond the expectation, then become a laboratory for the world to overcome a city bankruptcy. The recipe of Baltimore was adopted by other old ports in America, such as the Aloha Tower (Honolulu), and in other countries as well, like Port Vell (Barcelona), Tempozan (Osaka), Darling Harbor (Sydney), Kop van Zuid (Rotterdam), and so on. The reconstruction of the historical cities in the spirit of American struggle in the past is shown by several cities, such as San Antonio with its Fort Alamo, and Baltimore with its Fort Mc Henry and many others. All have become the pride of American people who considere them as patriotism monuments of the nation's independence struggle.

How about Indonesia? The history tells that Indonesian people in the past were maritime society who were dynamic, progressive, honest, brave, egalitarian, open, and received the spirit of pluralism. Indonesia people are also warrior nation who won independence from 3½ century of colonialism of which the world admired and was emulated by developing countries. However, more than 70 years after the independent day, Indonesia is sluggish in re-establishing its identity as a maritime nation, while in fact Indonesia is the largest archipelago country in the world, with tremendous natural wealth. Why archipelago nation once victorious as maritime society deny its selfidentity and turned into a non-maritime nation now? Why did our "sailors" ancestors fail to pass on marine life to their great-great-grandchildren? Admitted or not, the nation's problems is closely related to the colonialism running in a very long period in the past that made the history of the nation was cut off by 3½ centuries of the colonial era and was able to change the mind set of people from maritime to become non maritime nation. Take Jakarta as an example of the case, the phenomenon that stands out is the lack of local wisdom or spirit of place should have been inherited by predecessors in

the city, which means the absence pointer of "direction to the future" on development of the city. It was Ali Sadikin, then governor of DKI Jakarta 1966-1977, who introduced us to the approach of therapeutic strategy with patriotic vision behind the restoration of the Old City Old Batavia, followed by the restoration of sites, buildings and historical environment to strengthen the character of the city. The spirit of Ali Sadikin is a legacy in preserving historical colonial city under the patriotic spirit, of which in the urban scale it is considered as a "nationalist urbanism". City is a living organism, growing and developing with human values attached to it. The traces of the city's civilization will be expressed in the dimensions of space and time sequence, from the past to the present. The restoration of historical places as the Cultural Heritage is intended to regenerate the character of the pride of the city, besides being a tourist destination. Other cities that can be used as a symbol of the nation's selfidentity as the City of Struggle in Indonesia are Bandung with its "Bandung Lautan Api" (Burning Bandung), Bekasi with its "Patriot City", Buktinggi as the "City of Struggle" and Surabaya as the "City of Heroes". One way to restore the character of a city as the

City of Struggle is the reconstruction of historical traces in the city (Heritage Trail) and the traces of patriotism of the nation in that city (Patriot Trail), like have been done in many cities in the world. For example: Lincoln Heritage Trail, a number of roads in Illionois, Indiana and Kentucky, USA, which connects childhood community of Lincoln, with a length of 2,200 miles; or The Black Heritage Trail, Boston, USA, connecting more than 15 structures and historical sites during the Civil War. The restoration of Patriot Path in Jakarta can be done on the trail of historical traces of patriotism in Jakarta during the five eras, as a public space with national paradigm, to strengthen the character of Jakarta as Kota Joang (City of Struggle) and Maritime State, with the theme "from the sea back to the sea". The Jakarta Patriot Path consists of the Heritage Trail (historical traces), the Patriot Trail (traces of national struggles) and the Freedom Trail (traces leading to historical Independent Day). There are several prestige corridors of the city, namely Darmaga Sunda Kelapa – Gallery Nusantara; Sunda Kelapa - Kota Beos Station; Sunda Kelapa-Monas; Sunda Kelapa-R.I Proclamation Monument; Sunda Kelapa-Monas-Juanda-Garuda Street-Kemayoran-Ancol; and historical traces of the struggle for R.I.

independence (Freedom Trail) from the National Awakening Museum, Museum of the Youth Pledge, Proclamation of Independence Monument, to the monument of Rapat Raksasa in Ikada Field (Monas). The concept of Patriot Trail Jakarta has been approved by then Jakarta Governor Joko Widodo during his 2012-2014 tenure. Its implementation began with the project of Nusantara Gallery financed by APBD-P 2013 of Jakarta Tourism and Culture Office. After Joko Widodo became the 7the president, this project has yet to be continued. As a maritime spirit transmitter of Jakarta Reclamation, together with Palapa Nusantara Tower, is Sunda Kelapa Waterfront Twins Landmark (Jayakarta Heritage Park), stipulated in Presidential Decree No. 52 of 1995 concerning Reclamation of North Jakarta as character building icons to the Waterfront City of North Jakarta with the theme of "Rebirth of Jayakarta". Such a restoration approach of a city in the spirit of nationalism and patriotism can be developed as a model for the restoration of colonial towns in the archipelago. ***

November 2016 | Vol. 5 No. 44 | B5


Property Outlook in Q4 2016: Tax Amnesty Expected to Elevate Demand


Most of the property products in Greater Jakarta area experienced lower demand in the third quarter (Q3) of 2016, only industrial land which enjoyed a significant increase. The tax amnesty program launched by the government on 1 July 2016 is expected to improve the demand in the next quarter. According to Cushman & Wakefield Indonesia, a commercial real estate services company based in USA, the biggest drop of demand was experienced by office space by 54%, while the others slightly decreased. The Purpose-Built Rental Apartment experienced a 4.8% occupancy decrease to 74.4%, compared to the last quarter. However the Serviced Apartment enjoyed occasional increase of demand from Idul Fitri and school holiday season. The demand from short-stay tenants, especially from Middle East and Europe, who came for holiday in this quarter, gave occupancy increment of 1.3% from that in the previous quarter to 74.2%. The average occupancy

The tax amnesty program is expected to increase the demand, especially on condominium and apartment

rate of Jakarta retail market dropped 0.3% from last quarter reaching 84.0%. In the meantime the average occupancy rates of hotel market continues to decline due to decreasing room absorption and high level of supply, the YTD occupancy level of 3-star (economy), 4-star (Mid and upscale) and 5-star (Upperupscale and luxury) segment hotels decreased to 54.7%, 57.9% and 51.1% respectively as of end H1 2016.

The subsectors experienced a slightly increase in demand were condominium by 0.1% and residential by 2.0%, while the industrial increased significantly by 282% from 13.4 ha in Q2 to 51.3 ha in Q3. On the supply side, the office space welcomed an additional supply of THE Tower (62,000 sqm) on Jl. Jendral Gatot Subroto in Q3 2016, bringing the total cumulative supply to 5.57 million sq.m. About 40,000 sqm of office supply is

projected to enter the market in the fourth quarter of 2016. Rental rates in Rupiah decreased in Q3 2016 and are expected to remain under pressure in Q4. The total cumulative supply of retail space in Jakarta increased to 4,163,735 sq.m., with 73.0% (3,039,077 sq.m.) and 27.0% (1.124.700 sq.m.) of leased and strata title retail centers respectively with the opening of two new retail centers, namely PIK Avenue

and Neo Soho. In the coming quarter of 2016, five new retail centers are expected to enter the market, and almost all of them are leased retail centers. If these five retail centers are completed within the expected time, they will bring the cumulative retail space in Jakarta to 4,283,535 sq.m. by the end of 2016. The total cumulative supply of Greater Jakarta condominiums stood at 188,265 units as of September 2016, increased by 4.0% QoQ. At the same period, 11 new projects were launched to the market. These projects brought the total proposed condominium to about 203,765 units. Lower-middle segment condominiums dominated these newly launched projects of 44.7%, followed by middle (35.6%), upper-middle (12.3%), and upper segment projects (7.4%),

respectively. Based on location, these projects were dominated by Tangerang (43.6 %) and East Jakarta (18.5%). Most developers of residential launched their new clusters in H1 2016, increasing total net supply to 5,734 units. The new supply was dominated by middle to upper segment with the largest share occurred in Tangerang, of about 79% of the total new supply. For hotel, with 2,000 new hotel rooms completed, the total supply of 3 to 5-star hotel rooms in Jakarta will be about 35,200 rooms by end of 2016. The tax amnesty program is expected to increase the demand, especially on condominium and apartment. The completion of the new Terminal 3 Ultimate at Soekarno-Hatta International Airport in Tangerang, Banten, is predicted to bring in more tourists to raise the occupancy rate of the hotel. Meanwhile the developers of landed residential started to introduce lower down payment to 20% with longer down payment installment period for mortgage payment to boost the demand.


| November

2016 | Vol. 5 No. 44


Government Relies on Dry Ports to Reduce Dwelling Time

In order to shorten the dwelling time in loading and unloading goods at the ports, in the remaining three years of reign, the government would seriously pay attention on the construction of dry ports which currently there is only one in Cikarang, West Java. This was conveyed by Coordinating Minister (Menko) for Maritime Affairs Luhut Binsar Panjaitan in Jakarta on Friday (10/21). Luhut said that he believed the construction of more dry ports was the solution to reduce the dwelling time of loading and unloading at ports. Therefore in the future the ports will be just a place to receive the goods which are then sent directly to the dry ports to undergo inspection procedures and paper works. "Dwelling time is interesting, we never thought of dry port before. Now we start to utilize the Cikarang dry port. All the administrative processes will be done in Cikarang. The goods arrived at the Tanjung Priok Port will be directly sent to Cikarang. Except for the ones which get red and yellow marks, they have to stay at

Priok," Luhut said. With the system to directly send to the dry port, Luhut said he believed it would able to shorten the dwelling time at the main port to just two to three days.

Plus, he added, land traffic of cargos would also be lowered by up to 30 percent so that the flow of goods would be more efficient as well. "We will build

Aptrindo Calls for 3 Policies to Boost Logistics

Truck operating companies under the Indonesian Trucking Association (Aptrindo) have called on the Coordinating Ministry for Economic Affairs to create three policies deemed very strategic to boost the performance of national transport and logistics sector. Aptrindo’s Central Board Chairman Gemilang Tarigan said the three policies are related to the road network for more quality logistics lines, adequate information system, as well as regarding the licensing of freight. "Such three policies will be beneficial for certainty of doing business," he

said. Gemilang further said the right regulation in using certain road networks as the logistics lines would significantly reduce the cost of logistics in Indonesia since the logistics distribution from central productions to logistics hubs and end users would be more efficient and effective. "Currently 80% of logistics distribution in Indonesia is still using whatever big roads available," he said. Another problem needed to address, he added, was the quality of roads and bridges nationwide, including the Provincial and District infrastructure (Class

I - Class III), given almost all the regions rule to limit the maximum weight allowed (JBI) to 5,000 kg. “We need to increase the JBI limit from 5,000 kg to at least 8,000 kg.� Gemilang said he believed such a policy reform on JBI would lower the logistics costs given the capacity to transport the cargo shipments would be higher. "In addition, there will be a guarantee on the goods supply in the market at more competitive prices, thanks to the better distribution channels," he added.

another (dry ports) in Bogor, Semarang, Surabaya and Medan. I hope in the next two years the dwelling time will be 2-3 days," he said. Unfortunately Luhut did not mention about the financing

of the construction of the dry ports. The dry port construction has been brought up for quite a while to solve the problem of dwelling time considered too

long at the main ports. The government also seeks to improve the working environment in PT Pelindo II and plans to operate double cranes.

Indonesia Needs Modern Systems to Improve Competitiveness The facility of Bonded Logistics Center (PLB) provided by Customs Office has generated many advantages to the domestic industry. The businesses community has claimed to get benefits from such a facility due to increasing efficiency, both in terms of production and transportation costs. In order to maximize the distribution and storage of logistics, the warehouse for storing the goods in the PLBs should be supported by modern technology and be automated. That idea was proposed by Executive Director of Schefer System, Carsten Spiegelberg, "The logistics cost in Indonesia is still quite high, i.e. 14%. If the warehousing is automated, the storage and distribution processes can be maximized." Chairman of Indonesian Industrial Estates Association (HKI), Sanny Iskandar, said the biggest challenge to automate the warehousing is changing the mindset of business people in Indonesia to switch from conventional warehousing

towards the one with modern systems. Their reluctances were usually due to the enormous costs of warehousing automation. "The cost is huge, but this should be regarded as a long-term investment that will benefit in the future," said Sanny Iskandar. Actually, all agreed that the automated warehousing system was absolutely needed in Indonesia to deal with the fierce competition of international trade. However, the system would need some adjustments to accommodate Indonesia as an archipelago with spacious territory. According to Sanny, the national industrial com-

petitiveness must be supported by efficient supplies and modern warehousing management with the latest information technology. "With the enactment of several warehousing locations as a PLB, it is expected that the ideals of Indonesia to become the logistics hub will soon be realized," he said. Meanwhile, Deputy CEO of PT Kamadjaja Logistics Ivy Kamadjaja said that the facility provided by the Customs Office at PLBs was very beneficial financially. The facility allows users to delay the payment of import duties and taxes, making them easier to manage cash flow.

B8 | November 2016 | Vol. 5 No. 44

Event Gallery

Momiji Matsuri 2016 PT. Jababeka Tbk. once again presents Momiji Matsuri Festival 2016, a cultural festival event with the theme "Synergy Sports and Culture between Japan and Indonesia" on 29-30 October 2016 at Hollywood Junction, Kota Jababeka, Cikarang. This year Momiji Matsuri event presented by Cikarang Kei-On Club, Jakarta Kei-On Club, ZYANA, SISTER'S, GoBlock-S, The Kings and many others. Supported by PT Jababeka Tbk., Bekasi regency, Embassy of Japan, Japan Club Cikarang, Jakarta Japan Club, HIDA, JETRO, the Japan National Tourism Organization, DEKOPIN and Jababeka Hospitality Management.

The 2nd Momiji Matsuri presented by ICONS, Achmad Brothers and DJ Al Ghazali as a closing program



November 2016 | Vol. 5 No. 44 | THE PRESIDENT POST


SAM POO KONG Temple, Beautiful Merge Of Historical Cultures page C2



President University’s Students Learn How to Deal with Offensives in PR page C4

Twitter: @President_Post Facebook: The President Post


Homservis, Strategic Solution for Searching Experts page C6

Anne Avantie’s Bali Inspired Show Jakarta Fashion Week 2017 photo by Muljadi Suganda

C2 | November 2016 | Vol. 5 No. 44


SAM POO KONG Temple, Beautiful Merge Of Historical Cultures

The temple foundations were first built by Admiral Cheng Ho, elsewhere better known as Admiral Zheng He, a muslim explorer from Mainland China

The Sam Poo Kong Temple, also known as Gedung Batu (the Stone Building), is the oldest Chinese temple in Semarang, capital of the province of Central Java. Unlike most temples, the building does not belong to any specific religion, but rather functions as a place of worship for people of various ethnicities and religious groups including Buddhists, Taoists and muslims. The temple is located on Jalan Simongan, West Semarang. Sam Poo Kong is the oldest of 5 temples included in the Sam Poo Kong complex which spans across 3.2 hectares. The building covers an area of 1,020 square meters and is influenced by both Chinese and Javanese 14th century architectural styles. The temple is painted with a magnificent red color and crowned with a triple-layered pagoda-style roof, typical of East Asian culture. The surrounding area is thick with incense smoke, giving the feel of being in China itself. The temple foundations were first built by Admiral Cheng Ho, elsewhere better known as Admiral Zheng He, a

muslim explorer from Mainland China. After some time, Cheng Ho left Java, but many of his crew decided to stay behind and settle in the area. They married with the locals, and till now, Simongan is inhabited by descendants of China. In 1704, the original temple and cave collapsed in a landslide. The local community rebuilt it 20 years later in a different location, closer to the city center and further from areas prone to decay by natural

elements. It functions both as a place of worship, and a shrine honoring Cheng Ho for his services to the community.

Get There

Ahmad Yani International Airport offers international routes to Singapore and Kuala Lumpur. Domestic flights are available from Jakarta, Surabaya, Denpasar, Bandung, Balikpapan and Banjarmasin. Sam Poo Kong Temple

is located on Simongan Road, approximately 3 KM south west from Simpang Lima and about 20 minutes from the city center. The temple is open to the public 24 hours a day. Source:

C4 | November 2016 | Vol. 5 No. 44


President University’s Students Learn How to Deal with Offensives in PR

The palm oil industry, which continues under the public spotlight, is in need of public relations skills to manage negative issues. Therefore the Department of Internship and Career Center together with President University’s Communication Studies Program organized a seminar on "Developing PR Strategy for Business Sustainability." The seminar presented keynote speaker Yunita Sidauruk, PR practitioner and Chairperson of Legal Affairs of the Indonesian Palm Oil Association (GAPKI), Wednesday (10/5), at President Executive Club. In her speech Yunita said that GAPKI’s members were not involved in the environmental destructions being rife reported lately. "The perpetrators of forest fires are the members of GAPKI, but instead the local community who own the plantations and they are GAPKI’s members. Therefore, GAPKI needs to deliver this explanation to the public," Yunita added. In dealing with the environmental issues often raised by various non-govern-

J. Budhi Susetiyo Director of Internship & Career Center (ICC) President University with Yunita Sidauruk, PR practitioner and Chairperson of Legal Affairs of the Indonesian Palm Oil Association (GAPKI)

mental organizations, Yunita would act calmly and rely on data. "GAPKI does not worry to face NGOs dealing with environment because they are part of our public. NGOs could also become a reflection source of us to have introspection. To the NGOs who accused members of GAPKI conducting forest destructions, we can easily annul the accusations by giving the data. GAPKI always attend any discussion organized

by NGOs, but they never show up when we invite them," said Yunita. Various approaches have been taken by GAPKI to deal with the accusations related to the environmental damages allegedly caused by the palm oil industry. "GAPKI is always active in providing explanations through press releases. Media with a large number of the audience are invited to come down to the field to see by

their own eyes how the member companies of GAPKI manage the oil palm plantations with the principles of sustainability," said Yunita. Furthermore, GAPKI has proactively established transparency with stakeholders and communities in a good communication. "We proactively send a report on the implementation of CSR activities to the relevant government agencies. We are also pleased to attend the

discussions with the community and academics as a form of education about the palm oil industry," said Yunita. The seminar held together with the palm oil industry players aimed to educate 150 students majoring in communication science of President University about palm oil industry as well as to analyze the strategy of GAPKI’s PR using the lesson materials obtained in the classroom.

GAPKI does not worry to face NGOs dealing with environment because they are part of our public

Winning 5 Categories, UI Grabs Overall Championship of GEMASTIK 2016 University of Indonesia (UI) has come out as the Winner of National Student Exhibition of Information and Communication Technology (GEMASTIK) IX / 2016. The team of UI students won the title of Champion for winning all five categories in the competition, participated in by 119 teams from 37 universities in Indonesia. The winner announcement was done in the closing ceremony of GEMASTIK IX / 2016 entitled "Enabling the Smart Society through ICT" held on Saturday (10/29) at Sabha Widya UI Depok campus. The champion, runner-up and second runner-up in each category received a certificate and cash of Rp11 million, Rp8 million and Rp5 million respectively as well as the opportunity to earn a wildcard ticket into the Semi Final Microsoft Imagine Cup Indone-

sia ( for the winners of the competition in the categories of Gaming Application Development, Software Development, Intelligent Devices and Embedded Systems, Business Development of ICT and e-Government. The college who emerged as the overall champion was awarded the rotating trophy named "Samakbya Padhesa Widya" which means "The right information for science." In the category of P r o g r a m m i n g , Nem_HCNU_Peno team from UI, Hehehe team from Institut Teknologi Bandung (ITB) and Ristek-Kuikutsaja team from UI managed to come out as the winner, runner-up and second runner-up consecutively. In the second category called Games Application Development, Project Blue-9 team from Surabaya State Electronic Polytechnic, Bitart Labs team from Bogor Agriculture Institute

(IPB) and Ai Game Studio team from UI were the winner, runner-up and second runner-up consecutively. Meantime Rangrang team from Gadjah Mada University (UGM), Comrade team from Computer Indonesia University and Golden team from ITB were ranked first, second and third in the category of Software Development. The Perfect Party Code team from UI won the category of Network Security and Information Systems, followed by Mavisang team from ITB as runner-up and 0x6e647268 team from IPB as second runner-up. In the Animation category, Animedia team from vocational school STMIK Teknokrat was awarded the first prize, followed by Canan Animation team from the Telkom University at second place and Anak Mudo Naik Kudo from Caltex Polytechnic

who the third place. In the category of Intelligent Devices & Embedded System, Moco Warrior team from the Sepuluh Nopember Institute of Technology (ITS), Ristek Zalori team from UI and Zafron team from Muhammadiyah University Malang successfully won the first, second and third prize respectively. In User Experience Design, Sanfransisco Hills team from UI, GreatIDEA team from IPB, and New Player team from UI won the first, second and third prize consecutively. Ristek - Quint team from UI, Lumen-v3.1 team from ITS and Vuseon team from North Sumatra University (USU) managed to come out as the winner, runner-up and second runner-up for the category of Business Development of ICT. Furthermore, Inst_Tech_Sepuluh team from ITS managed to win the catego-

ry of Data Mining, followed by Miko & Friends team from UI and Superpencilan team from ITS as the runner-up and second runner-up. The last category e-Government was won by ABCode team from UI, while Blu Gktr team from University of Budi Luhur and DM team from ITS came out as runner-up and second runner-up respectively. The non-category awards were awarded to As datech team from UIN Sultan Syarif Kasim Riau and Silver Bullet team from STMIK Palcomtech Palembang for Most Inspiring Team, and to Snorlax team from UGM for the Best Poster. Chairman of the Committee of GEMASTIK IX/2016 Dr. Yugo Kartono Isal congratulated the overall champion, the winners and the finalists. He said he was proud with the enthusiasm of students through-

out Indonesia in participating in the GEMASTIK activities. Evident from year to year shows GEMASTIK is increasingly popular by recording 2,307 teams of participants from 113 universities in Indonesia for 10 categories of GEMASTIK competition. "Hopefully, the students are not only satisfied with the achievement today, but keep working and channeling the spirit of innovation in ICT development for the advancement of human resources of the Indonesian nation." GEMASTIK is a series of competitions, exhibitions and seminars in the field of Information and Communication Technology which has been held annually. This activity is a program of the Directorate General Education and Student Affairs, the Ministry of Research Technology and Higher Education.

Gadjah Mada University Students Win Grand Prize of International Food Innovation Challenge YSEALI SIEM REAP, 1 November 2016 – The United States and the Association of Southeast Asian Nations (ASEAN) have selected Indonesian team comprising three students of University of Gadjah Mada as the winner of YSEALI World of Food Innovation Challenge 2016. The MINO technology microbubble generator increases the oxygen in the water so that the size of the fish become 40 percent bigger, life sustainability

increases by nine percent and ultimately it will raise the number of fish to harvest. "We believe this system will not only improve the welfare of the fish farmers, but also open up employment opportunities in other sectors, and improving food security at the local, international, and regional level," said Untari Febrian Ramadhani, Mino Team members. The members of the Committee on Science and

Technology ASEAN met in Siem Reap, Cambodia, to attend the Ministerial Meeting and selected Muhammad Nabil Satria Faradis, Fajar Sidik Abdullah, and Untari Febrian Ramadhani as the winner. The students will take part in a study visit in March 2017 to Austin, Texas, one of the major technology centers in the United States. "The United States is committed to partnering with ASEAN in providing opportu-

nities for young people to contribute in the fields of science, technology, and innovation. We are aware that young people have a great potential to develop innovative technology solutions to overcome the most complex challenges regarding food security in Southeast Asia. That is why the US Agency for International Development (USAID) launched YSEALI Food Innovation Challenge International in February 2016 as part of a

US government initiative to involve young people in the region.” Innovation Challenges, organized by the US Agency for International Development in partnership with the giant technology companies Cisco and Intel, invited young people from across the ASEAN countries to offer solution-based technology that can help overcome the most alarming problems in Southeast Asia in agriculture, aquaculture, and

fisheries. More than 200 applications were submitted coming from Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam. The US partnership with ASEAN aims to foster the future leaders, supporting economic integration, expanding maritime cooperation, promoting opportunities for women, and addressing the challenges of cross-country.

C6 | November 2016 | Vol. 5 No. 44


Homservis, Strategic Solution for Searching Experts Homservis, a new mobile application for booking services, was officially launched early January 2016. The application offers services on demand including air conditioning repairs, electronic services, computer and plumbing repairs, car wash, tutors and other services. CEO of Homservis Tito Makmur said Homservis has had 2,800 service providers spreading in South Jakarta. "We have had 2,800 right now, but we continue to increase the number service providers. We are currently focusing in the area of South Jakarta, next will be all Jakarta and then Indonesia," said CEO Homservis Tito Makmur to IndonesianIndustry on Monday (8/15). Homservis is an innovative application to increase employment opportunities for anyone, by registering a business service in accordance with their respective domain expertise. Tito said the application will display the accurate providers’ locations a consumer can choose. "Registration is free and easy," he added. This application is also

Mobile applications in the field of services still wide open CEO Homservis

a form to support the government in alleviating the unemployment problems. "Small businesses usually have difficulty in getting working capital. They have no assets so that when dealing with the bank, they fail. With the help of our application, they have the transaction data stored neatly and can be used to borrow money from the bank," he said. He further explained, for the service providers the application is suitable for

proactive strategy in reaching the consumers. The consumers living in South Jakarta do not need to look for service providers located far away in West Jakarta, since in their neighborhood actually there are many service providers with expertise they need. As for the consumers who want to enjoy the Homservis, they simply need to download the app in the App Store and Google Play. Once already logged in, the consumers only

need to fill in the address and choose a category of services needed. Further selection of services, experts, or artisan within a radius of 2 kilometers will appear along with their rating. Related to the costs, Tito said Homservis only revolutionized the way consumers seeking products and services needed to make the process more quickly and efficiently. In contrast to similar services, Homeservis is smart in cutting

unnecessary processes; which is by connecting directly between the searchers of services and the service providers based on location. Tito said he saw the opportunity to build mobile applications in the field of services still wide open. Though some have appeared but the market is still big enough for the new ones. "Today, people are busy; all want to get everything in practical ways. Especially for the

necessity at home, for example currently they order a gallon of water by phone or come to the store. Sometimes people are hard to find an air conditioning service provider once they found it the location is too far. With Homservis now it’s easy; just take a look and select a transaction with service provider you need; it’s quick, easy and direct with no additional cost," Tito said. Regarding the application development, Homservis is supported by Angel Investor of PT Batavia Prosperindo Investama. Tito estimated the funds needed for its development would be Rp8 billion with version 2.0 of Homeservis for android and iOS users. The Homservis is developed by four people namely Tito Makmur as CEO & Founder, Zully Surianingrat as CTO & Co-founder, Rikasari Marianti as CMO & Co-founder and Arif Wahyudi COO and Co-founder. (Ahmad Fadli)

November 2016 | Vol. 5 No. 44 | C7

Senior Life

9 Tips to Have Problem Free Vacation for Family with Elderly Enjoying a vacation with all family members would be nice. You must be thrilled to see the kids playing or joking around merrily with their grandparents who live apart and do not meet with everyday. However, having a vacation with a big family, certainly there are some differences to experience compared to traveling only with the spouse and children. Given the wide range of ages of the family members, of course there are special considerations to take to make it remain comfortable. Start with the selection of the location, then the length of time on vacation, the vehicle to be used, the tour schedules of the day, the food to the place to stay. Departing from these concerns, ELM WOOD, an elderly international community, initiated a special holiday which is elderly friendly. The idea is not only to give happiness to the elderly parents, but of course also to make trip run comfortably. Such a need is still rarely accommodated in the world, including Indonesia. However,

in the world tourism businesses, special tours for elderly actually have been developed in the last 7 years. Not like tour packages in general, the tour for elderly designed by ELM WOOD will carry on for 6 days with the activities of a maximum 8 hours/day. The itinerary is customized with the destinations taken and senior living institutions in cooperation with ELM WOOD. Since the health of the

elderly is sensitive, there will be doctors who will examine the participants regularly both before and after the tour. On 10/10 2016 Elm Wood in collaboration with the Association of Senior Living Indonesia or ORIGINAL signed an agreement to develop tour packages to Indonesia for the elderly. The ELM Wood’s inaugural tour last September was bringing a group of elderly from Australia to Sentul and

Jampang Village, Parung, Bogor, West Java. What were the activities? Among other things were visiting Bidadari waterfall, stopping by at Darmawan park, playing angklung traditional music instrument, watching traditional dance performances, learning to make batik, gardening, walking around the village to see the process of making tofu, hand-made machetes, and aquaculture. So, what are the tips for

traveling with the elderly? To make your trip with elderly fun do 9 things below: 1. Make sure the elderly are healthy enough to follow the itinerary. 2. Bring personal medicines and tell their history of present illness to the tour leader. 3. Choose your tour & travel agency specialized in providing tour services for the elderly. 4. Make sure they will get senior living accommodation or elderly specialty lodging with

all the facilities required by elderly. The facilities include the availability of certified caregivers, a doctor who is ready to check the health of participants each morning and evening, the nurses, bedrooms with the design like the ones in hospital, a spacious bathroom with anti-slippery floor, seated WC, and the handrail next to the seated WC. 5. While on the road, every seat in the vehicle should be completed with a seatbelt. 6. Make sure the toilets at the tourist sites to be visited are clean, the floor is not slippery, and the WC is seated. 7. Make sure the tour participants are accompanied by a caregiver with a ratio of 15 elderly people accompanied by two caregivers. 8. Make sure the caregivers will take the tour participants up to the door of toilet when they need to urinate or defecate. 9. Choose the tour agenda that is not too tiresome and allowing a break when the participants feel tired. Source:

C8 | November 2016 | Vol. 5 No. 44


140 Golfers Take Part in Akmil Open Golf Tournament The Indonesia Military Academy (Akmil) held a golf tournament named Akmil Open Golf Tournament. The tournament is held at Borobudur International Golf Course and Country Club, Magelang, on Saturday (29/10), adjacent to the Magelang Military Academy campus. No less than 140 golfers of alumni of the Military Academy from all over Indonesia were playing in the tournament. The golf tournament was also attended by Military Academy Governor Major General Arif Rahman, and former Minister of Home Affairs, Mardiyanto. The festive tournament offered a total prize of Rp50 million. For the Grand Prize of "hole in one", the committee provided two Toyota Avanza and cash of Rp2 million. In addition, there were also lucky draws worth up to Rp25 million. In general, this event run smoothly and all the participants seemed to enjoy the course of the tournament and were satisfied with the way it was organized.

The golf tournament was also attended by Military Academy Governor Major General Arif Rahman, and former Minister of Home Affairs, Mardiyanto The International Borobudur Golf Course and Country Club is a 5 star golf course with 18-holes located in Magelang. Its location offers a guarantee of pure pleasure and comfort. You will discover it as an elegant club in a warm & friendly atmosphere!

The President Post English Edition November 2016  

Police, BKPM Guarantee Investment in Kendal Industrial Park, Central Java, Secured

The President Post English Edition November 2016  

Police, BKPM Guarantee Investment in Kendal Industrial Park, Central Java, Secured